CAMERON LNG, LLC — Notice of Probable Violation

party submissionOfficial PDF420193001_Operator Hearing Request Withdrawn_11212019.pdf#

party submissionOfficial PDF420193001_Operator Response to Notice and Request for Hearing Redacted_08162019.pdf#

420193001_Consent Agreement and Order_09282020_text.pdf, page 1Official PDFSeptember 28, 2020 VIA ELECTRONIC MAIL TO: dcallens@cameronlng.com Mr. Daniel Callens, Jr. Chief Operating Officer Cameron LNG, LLC 2925 Briarpark Drive, Suite 1000 Houston, Texas 77042 CPF No. 4-2019-3001 Dear Mr. Callens: Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Cameron LNG, LLC, which was executed on September 25, 2020. Service of the Consent Order and Consent Agreement by electronic mail is deemed effective upon the date of transmission as provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Alan K. Mayberry Associate Administrator for Pipeline Safety Enclosure: Order and Consent Agreement cc: Ms. Mary McDaniel, Director, Southwestern Region, OPS, PHMSA Ms. Linda Daugherty, Deputy Associate Administrator for Field Operations, OPS, PHMSA Mr. Blair Woodward, General Counsel, Cameron LNG, LLC, bwoodward@cameronlng.com Mr. Brett A. Snyder, Counsel for Cameron LNG, LLC, Blank Rome, LLP, bsnyder@blankrome.com CONFIRMATION OF RECEIPT REQUESTED#

420193001_Consent Agreement and Order_09282020_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ ) In the Matter of ) ) Cameron LNG, LLC, ) CPF No. 4-2019-3001 ) Respondent. ) ____________________________________) CONSENT AGREEMENT AND ORDER WHEREAS, on July 30, 2019, the Director, Southwest Region (Director), Office of Pipeline Safety, Pipeline and Hazardous Materials Safety Administration (PHMSA), U.S. Department of Transpo1tation, issued to Cameron LNG, LLC (CLNG or Respondent), a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Notice), pursuant to Chapter 60l of 49 U.S. Code, for alleged violations of 49 C.F.R. §§ 193.2011 (Item 1) and 193.2017 (Item 2). The Notice proposed assessing an administrative civil penalty of $41,600 for Item 1 and ordering Respondent to take ce1tain measures to correct Item 2; and WHEREAS, on August 16, 2019, CLNG submitted a written response to the Notice, in which the Respondent contested both alleged violations, the proposed civil penalty, and the proposed compliance order and requested a-hearing pursuant to 49 C.F.R. § 190.211. CLNG also requested a meeting with Southwest Region, which took place on or about September 4, 2019, to discuss resolution of this enforcement proceeding; WHEREAS, subsequent settlement discussions occurred via email and teleconferences; and WHEREAS, as result of these good-faith discussions, the Parties have reached agreement on the terms and conditions of a settlement, as set forth herein, and agree that this Consent Agreement and Order (Agreement) will avoid further administrative proceedings or litigation, that it is the most appropriate means of resolving the issues raised in the Notice, and that it will promote the public interest by advancing the enforcement and safety goals of PHMSA. NOW, THEREFORE, upon consent and agreement of the Parties, it is Ordered and Adjudged as follows: 1#

420193001_Consent Agreement and Order_09282020_text.pdf, page 3CPF No. 4-2019-3001 A. General Provisions. 1. CLNG acknowledges that, for purposes of this Agreement, the CLNG facility located in Hackberry, Louisiana, is subject to the jurisdiction of the Federal pipeline safety laws, 49 U.S.C. 60101, et seq., and the regulations and administrative orders issued thereunder. 2. CLNG further acknowledges that it received proper notice of PHMSA's action in this proceeding and that the Notice states claims upon which relief may be granted pursuant to 49 U .S.C. § 60101, et seq., and the regulations and orders issued thereunder. 3. CLNG agrees to the terms of this Agreement and hereby waives any further procedural requirements with respect to its issuance. CLNG also waives all rights to contest the validity of this Agreement, including all rights to administrative or judicial hearings or appeals. 4. For Item I of the Notice, PHMSA re-issues Item I as a Warning Item pursuant to 49 C.F.R. § 190.205 and withdraws the associated proposed administrative civil penalty. PHMSA also agrees that Item 1 does not constitute a finding of violation and may not be considered by the agency as a prior offense in any future enforcement action against Respondent. However, if PHMSA finds a violation of this Paragraph 4 in a subsequent inspection or investigation, CLNG may be subject to future enforcement action. 5. For Item 2 of the Notice, CLNG does not contest this Item or the associated proposed compliance order, which is adopted as set forth in Section B herein. B. Compliance Measures. 6. Within 60 days following the Effective Date of this Agreement, as specified below, Respondent agrees that it will modify its Emergency Response Procedures to ensure that all events required to be reported under 49 C.F.R. § 191.5 are adequately defined. The.revised procedure must include guidance for personnel whose responsibilities include gathering appropriate information and/or reporting on what significant events meet the definition of an incident. In revising the procedures, CLNG must ensure that all appropriate training to the revised procedures is completed and documented. 7. It is requested (not mandated) that CLNG maintain documentation of the safety improvement costs associated with fulfilling this Agreement and submit the total to the Director. PHMSA requests that these costs be reported in two categories: (I) total cost associated with the preparation/revision of plans, procedures, studies and analyses; and (2) total cost associated with replacements, additions and other changes to pipeline infrastructure. 8. The Director may grant an extension of time to comply with any portion of Paragraph 6 above upon a written request timely submitted by the Respondent and demonstrating good cause for an extension. Upon completion of all actions required under Paragraph 6, CLNG may request that the Director close the case. 2#

420193001_Consent Agreement and Order_09282020_text.pdf, page 4CPF No. 4-2019-3001 C. Dispute Resolution 9. The Director and CLNG will informally attempt to resolve any disputes arising under this Agreement. If Respondent and the Director are unable to informally resolve the dispute within 10 calendar days of submittal of Respondent's invoking dispute resolution, CLNG may request in writing, within 10 calendar days thereafter, a written determination resolving the dispute from the Associate Administrator for Pipeline Safety by providing all information that Respondent believes is relevant to the dispute. If the request is submitted as provided herein, the Associate Administrator will issue a final determination in writing. The existence of a dispute and PHMSA's consideration of the matters placed in dispute will not excuse, toll, or suspend any term or timeframe for completion of any work to be performed under this Agreement during the pendency of the dispute resolution process, except as agreed by the Director or the Associate Administrator in writing. D. Miscellaneous. 10. Nothing in this Agreement affects or relieves CLNG of its responsibility to comply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and orders issued thereunder. Furthermore, nothing in this Agreement alters PHMSA's right of access, entry, inspection, and information gathering, or its authority to bring any enforcement action against CLNG pursuant to the Federal pipeline safety laws, the regulations and orders issued thereunder, or any other provision of Federal or state law. 11. This Agreement does not waive or modify any Federal, state, or local laws or regulations applicable to CLNG's pipeline system. This Agreement is not a permit or a modification of a permit under any Federal, state, or local laws or regulations. CLNG remains responsible for achieving and maintaining compliance with all applicable Federal, state, and local laws, regulations and permits. 12. This Agreement constitutes the final, complete, and exclusive agreement and understanding between the Parties with respect to this proceeding and the issues embodied in this Agreement. The Parties acknowledge that there are no representations, agreements, or understandings relating to the amount or collection of any civil penalties other than those expressly contained in this Agreement. 13. This Agreement does not create rights in, or grant any cause of action to, any person not a patty to this Agreement. PHMSA, its officers, employees, agents, and representatives are not liable for any injuries, damages or any other cause of action arising from any acts or omissions of CLNG or its contractors in carrying out any work required by this Agreement. 14. This Agreement shall apply to and be binding on PHMSA and CLNG, its officers, directors, employees, successors and assigns, including, but not limited to, subsequent purchasers. 15. Respondent's obligations pursuant to this Agreement may be enforced by PHMSA pursuant to its general enforcement authorities under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190. 3#

420193001_Consent Agreement and Order_09282020_text.pdf, page 5CPF No. 4-2019-3001 E. Effective Date. 16. CLNG and PHMSA The "Effective Date" is the date on which this Agreement has been signed by both F. Ratification. 17. The Parties’ undersigned representatives certify that they are fully authorized to enter into the terms and conditions of this Agreement and to execute and legally bind such party to this document. For Cameron LNG, LLC (Respondent): ___________________________________ Daniel Callens Chief Operating Officer September 16, 2020 ___________________________________ Date For PHMSA: ___________________________________ Alan K. Mayberry Associate Administrator for Pipeline Safety September 25, 2020 ___________________________________ Date 4#

420193001_NOPV PCP PCO_07302019_text.pdf, page 1Official PDFCERTIFIED MAIL- RETURN RECEIPT REQUESTED July 30, 2019 Dan Callens Senior Vice President, Terminal Operations Cameron LNG, LLC 2925 Briarpark, Suite 1000 Houston, Texas 77042 Dear Mr. Callens: Our office submitted a NOPV PCP PCO Letter, CPF 4-2019-3001, DATED, July 22, 2019. Please discard the letter that was submitted previously, and use this letter that is enclosed in the place of it. Sincerely, Mary L. McDaniel, P.E. Director, Southwest Region Pipeline and Hazardous Materials Safety Administration Enclosure#

420193001_NOPV PCP PCO_07302019_text.pdf, page 2NOTICE OF PROBABLE VIOLATION PROPOSED CIVIL PENALTY and PROPOSED COMPLIANCE ORDER CERTIFIED MAIL - RETURN RECEIPT REQUESTED July 22, 2019 Dan Callens Senior Vice President, Terminal Operations Cameron LNG, LLC 2925 Briarpark, Suite 1000 Houston, Texas 77042 CPF 4-2019-3001 Dear Mr. Callens: On May 20, 2019, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected your Cameron LNG facility in Hackberry, Louisiana. As a result of the inspection, it is alleged that you have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected and the probable violations are: 2#

420193001_NOPV PCP PCO_07302019_text.pdf, page 31. §193.2011 Reporting. Incidents, safety-related conditions, and annual pipeline summary data for LNG plants or facilities must be reported in accordance with the requirements of Part 191 of this subchapter. §191.5 Immediate notice of certain incidents. (a) At the earliest practicable moment following discovery, but no later than one hour after confirmed discovery, each operator must give notice in accordance with paragraph (b) of this section of each incident as defined in §191.3. (b) Each notice required by paragraph (a) of this section must be made to the National Response Center either by telephone to 800-424-8802 (in Washington, DC, 202 267- 2675) or electronically at http://www.nrc.uscg.mil and must include the following information: (1) Names of operator and person making report and their telephone numbers. (2) The location of the incident. (3) The time of the incident. (4) The number of fatalities and personal injuries, if any. (5) All other significant facts that are known by the operator that are relevant to the cause of the incident or extent of the damages. (c) Within 48 hours after the confirmed discovery of an incident, to the extent practicable, an operator must revise or confirm its initial telephonic notice required in paragraph (b) of this section with an estimate of the amount of product released, an estimate of the number of fatalities and injuries, and all other significant facts that are known by the operator that are relevant to the cause of the incident or extent of the damages. If there are no changes or revisions to the initial report, the operator must confirm the estimates in its initial report. Cameron LNG, LLC (CLNG), failed to notify the National Response Center of two incidents that occurred at its liquefied natural gas (LNG) facility in accordance with §191.5, Immediate notice of certain incidents. CLNG experienced an unintentional release of LNG during initial startup operations on January 9, 2019 and again on May 15, 2019. The January 9, 2019, and the May 15, 2019 incidents both involved the release of LNG from a flanged joint connection, and were not reported through the NRC. On January 9, 2019, during commissioning activities of the BOG compressors, CLNG Operations observed an intermittent LNG leak originating at XV-60001, BOG inlet to D- 6003 BOG Compressor Suction Drum (see CAM-60-PID-0186. A temperature variance in the pipe consequently caused LNG to leak from the XV-60001 outlet flange. 3#

420193001_NOPV PCP PCO_07302019_text.pdf, page 4On May 15, 2019, CLNG personnel observed LNG dripping near the isolation valve of the low pressure dry flare header at the battery limits between ISBL Train 1 and OSBL in WA-110, at the south-east corner of Train 1. At the time of the discovery, both CCJV and CLNG did not consider the LNG release an incident or a significant event and therefore failed to make the required NRC notification. 2. §193.2017 Plans and procedures. (a) Each operator shall maintain at each LNG plant the plans and procedures required for that plant by this part. The plans and procedures must be available upon request for review and inspection by the Administrator or any State Agency that has submitted a current certification or agreement with respect to the plant under the pipeline safety laws (49 U.S.C. 60101 et seq.). In addition, each change to the plans or procedures must be available at the LNG plant for review and inspection within 20 days after the change is made. The CLNG procedure Emergency Response Plan CAM-MN-HS-001, Appendix 5 does not provide sufficient detail for reporting incidents in accordance with §191.5. The procedure does not outline the required events for reporting, includes unclear direction for the reporting of incidents, and does not provide personnel with basic description of company defined events that meet the definition of an incident. Proposed Civil Penalty Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed $213,268 per violation per day the violation persists, up to a maximum of $2,132,679 for a related series of violations. For violation occurring on or after November 2, 2015, and before November 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015, the maximum penalty may not exceed $200,000 per violation per day, with a maximum penalty not to exceed $2,000,000 for a related series of violations. Also, for each violation involving LNG facilities, an additional penalty of not more than $77,910 occurring on or after November 27, 2018 may be imposed. For each violation involving LNG facilities occurring on or after November 2, 2018, and before November 27, 2018, an additional penalty of not more than $76,352 may be imposed. For each violation involving LNG facilities occurring prior to November 2, 2015, an additional penalty of not more than $75,000 may be imposed. The Compliance Officer has reviewed the circumstances and supporting documentation involved in the above probable violation(s) and has recommended that you be preliminarily assessed a civil penalty of $41,600 as follows: Item number PENALTY 1 $41,600 4#

420193001_NOPV PCP PCO_07302019_text.pdf, page 5Proposed Compliance Order With respect to items 2 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to Cameron LNG, LLC. Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice. Response to this Notice Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. All material you submit in response to this enforcement action may be made publicly available. If you believe that any portion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete original document you must provide a second copy of the document with the portions you believe qualify for confidential treatment redacted and an explanation of why you believe the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b). Following the receipt of this Notice, you have 30 days to submit written comments, or request a hearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue a Final Order. If you are responding to this Notice, we propose that you submit your correspondence to my office within 30 days from receipt of this Notice. This period may be extended by written request for good cause. In your correspondence on this matter, please refer to CPF 4-2019-3001 and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Mary L. McDaniel, P.E. Director, Southwest Region Pipeline and Hazardous Materials Safety Administration Enclosures: Proposed Compliance Order Response Options for Pipeline Operators in Compliance Proceedings 5#

420193001_NOPV PCP PCO_07302019_text.pdf, page 6PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Cameron LNG, LLC a Compliance Order incorporating the following remedial requirements to ensure the compliance of Cameron LNG, LLC with the pipeline safety regulations: 1. 2. 3. In regard to Item Number 2 of the Notice pertaining to the operator’s inadequate procedure for reporting incidents, Cameron LNG LLC shall modify its Emergency Response Procedures to ensure that all events required to be reported under §191.5 are adequately defined. The revised procedure must include guidance for personnel whose responsibilities include gathering appropriate information and/or reporting on what significant events meet the definition of an incident. In revising the procedures, Cameron LNG LLC must ensure that all appropriate training to the revised procedures is completed and documented. Cameron LNG, LLC must complete and submit all documentation for the revisions under Item 1 of this Compliance Order within 60 days of issuance of the Final Order. It is requested (not mandated) that Cameron LNG, LLC maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Mary McDaniel, Director, Southwest Region, Pipeline and Hazardous Materials Safety Administration. It is requested that these costs be reported in two categories: 1) total cost associated with preparation/revision of plans, procedures, studies and analyses, and 2) total cost associated with replacements, additions and other changes to pipeline infrastructure. 6#

420193001_Closure Letter_02192021_text.pdf, page 1Official PDFELECTRONIC MAIL - RETURN RECEIPT REQUESTED February 19, 2021 Dan Callens Chief Operating Officer Cameron LNG, LLC 2925 Briarpark Drive, Suite 1000 Houston, Texas 77042 CPF 4-2019-3001 Dear Mr. Callens: On July 30, 2019, the Pipeline and Hazardous Material Safety Administration (PHMSA) issued Cameron LNG a Notice of Probable Violation, Proposed Penalty, and Proposed Compliance Order for alleged violations for §193.2011 and §193.2017. On September 20, 2020, PHMSA and Cameron LNG entered into a Consent Agreement for the items included in the Notice. In the terms of the agreement, Cameron LNG agreed to modify its Emergency Response Procedures to ensure all events required to be reported under §191.5 were incorporated. Cameron LNG submitted its revised Emergency Response Procedures on November 20, 2020. The revised procedures included the reporting requirements required under §191.5. Based on our review of the documentation provided, it has been determined that you have fundamentally complied with the terms of the Consent Agreement and that this case is now considered closed. Should you have questions, please do not hesitate to contact me. Sincerely, Mary L. McDaniel, P.E. Director, Southwest Region Pipeline and Hazardous Materials Safety Administration cc: Michael Wolf, Manager, Regulatory & Compliance, Cameron LNG, mwolf@cameronlng.com#

420193001_PHC Hearing Scheduled_09032019_text.pdf, page 1Official PDFSeptember 3, 2019 VIA CERTIFIED MAIL AND EMAIL TO: dcallens@cameronlng.com and mary.mcdaniel@dot.gov Mr. Dan Callens Chief Operating Officer Cameron LNG, LLC 2925 Briarpark Drive, Suite 1000 Houston, Texas 77042 Ms. Mary McDaniel Director, Southwest Region, PHMSA 8701 South Gessner, Suite 630 Houston, Texas 77074 Re: Notice of Hearing, Cameron LNG, LLC CPF No. 4-2019-3001 Dear Mr. Callens and Ms. McDaniel: In accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the Office of Pipeline Safety in the above-referenced case. The hearing has been scheduled and will take place on December 3, 2019, beginning at 9:00 a.m. Central Time. The hearing will be at the PHMSA Southwest Region office, 8701 South Gessner, Suite 630, Houston, TX 77074. Upon arrival at the building, attendees will be required to present photo identification to security personnel. A contact phone number for the day of the hearing is (713) 272-2859. Both parties must submit and exchange any additional written materials they intend to present at least 10 calendar days prior to the hearing (November 23, 2019), along with a list of attendees, and the names of any witnesses who may testify. You may provide this information electronically. If you have any questions, please contact me at (202) 366-6139 or at kristin.baldwin@dot.gov. If you have any questions, please do not hesitate to contact me. Sincerely, Kristin Baldwin Presiding Official cc (email): Ms. Ahuva Battams, Counsel, Southwest Region, Office of Pipeline Safety, PHMSA PHMSA Compliance Registry#