# FREEPORT LNG DEVELOPMENT, L.P. — Safety Order

- **operation:** document
- **citation:** CPF 420193002S
- **title:** FREEPORT LNG DEVELOPMENT, L.P. — Safety Order
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2019-08-29
- **effective on:** Not available
- **summary:** CLOSED safety order.
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-420193002s.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-420193002s.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-420193002s
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/420193002S
**body:**

Safety Order involving FREEPORT LNG DEVELOPMENT, L.P.. The dataset does not identify a cited regulation for this case. The case was opened on 2019-08-29 and is reported as closed as of 2023-03-10. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

420193002S_Closure Letter_03102023_(15-150389S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/420193002S/420193002S_Closure%20Letter_03102023_(15-150389S).pdf

420193002S_Closure Letter_03102023_(15-150389S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420193002S/420193002S_Closure%20Letter_03102023_(15-150389S)_text.pdf

420193002S_Consent Order and  Agreement_02142020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420193002S/420193002S_Consent%20Order%20and%20%20Agreement_02142020.pdf

420193002S_Consent Order and  Agreement_02142020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420193002S/420193002S_Consent%20Order%20and%20%20Agreement_02142020_text.pdf

420193002S_Notice of Proposed Safety Order_08292019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420193002S/420193002S_Notice%20of%20Proposed%20Safety%20Order_08292019.pdf

420193002S_Notice of Proposed Safety Order_08292019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420193002S/420193002S_Notice%20of%20Proposed%20Safety%20Order_08292019_text.pdf

420193002S_Consent Order and  Agreement_02142020_text.pdf

February 14, 2020
Mr. Michael S. Smith
Chairman and Chief Executive Officer
Freeport LNG Development, LP
333 Clay Street
Suite 5050
Houston, Texas 77002
Re: CPF No. 4-2019-3002S
Dear Mr. Smith:
Enclosed please find the Consent Order issued in the above-reference case, incorporating the
terms of the fully executed Consent Agreement that resolves the issues underlying the Notice of
Proposed Safety Order issued by PHMSA on August 27, 2019. Your receipt of this Consent
Order constitutes service, 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
Enclosures (Consent Agreement and Order)
cc: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA
Mr. Shaw C. Ottis, Vice President and Deputy General Counsel, Freeport LNG
Development, LP, 333 Clay Street, Suite 5050, Houston, Texas 77002
Mr. Mark W. Mallett, Senior Vice President – Operations and Projects, Freeport LNG
Development, LP, 333 Clay Street, Suite 5050, Houston, Texas 77002
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Freeport LNG Development, LP, ) CPF No. 4-2019-3002S
)
)
)
Respondent )
____________________________________)
CONSENT ORDER
By letter dated August 29, 2019, the Pipeline and Hazardous Materials Safety Administration,
Office of Pipeline Safety, issued a Notice of Proposed Safety Order (Notice) to Freeport LNG
Development, LP (FLNG).
In response to the Notice, Respondent requested an informal consultation, whereupon the parties
engaged in good-faith settlement discussions that have resulted in the Consent Agreement attached
to this Order that settles all of the allegations in the Notice.
Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this
Order. FLNG is hereby ordered to comply with the terms of the Consent Agreement, effective
immediately.
Pursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the
assessment of civil penalties as set forth in 49 C.F.R. § 190.223.
The terms and conditions of this Consent Order are effective upon service in accordance with 49
C.F.R. § 190.5.
February 14, 2020
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety



DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY
ADMINISTRATION
)
In the Matter of )
)
Freeport LNG Development, L.P., ) CPF No. 4-2019-3002S
)
Respondent )
)
CONSENT AGREEMENT
On August 29, 2019, the Pipeline and Hazardous Materials Safety Administration (PHMSA),
Southwest Region, issued a Notice of Proposed Safety Order (Notice) to Freeport LNG
Development, L.P. (Respondent), which operates a natural gas liquefaction and export facility on
Quintana Island, Texas (the Export Facility). The Notice was issued after an August 1, 2019,
incident at the Export Facility in which Respondent was performing a cool down operation as part
of the steps to commission Train 1. Respondent experienced a failure when attempting to reduce
the time required to properly cool down the facility. FLNG flowed high pressure chilled natural gas
at approximately 917 pounds per share inch (psig) through bypass piping into 6” piping designed for
a maximum operating pressure of 90 psig. The 6” line consequently failed near the branch weld that
joined it with the bypass piping, which resulted in an unintended release of natural gas.
The Notice alleged that conditions exist at Respondent’s Export Facility that might pose an integrity
risk to public safety, property, or the environment. The Notice also proposed that Respondent take
certain corrective measures to remedy the alleged conditions and ensure that the public, property,
and the environment were protected from the potential risk.
Respondent responded to the Notice by timely submitting a written response and request for an
informal consultation. An informal consultation was held on October 17, 2019.
As a result of the informal consultation, PHMSA and Respondent agreed that settlement of this
proceeding will avoid further administrative proceedings or litigation of this Notice and that entry
into a Consent Agreement is the most appropriate means of addressing the alleged conditions raised
in the Notice and is in the public interest. Therefore, pursuant to 49 C.F.R. Part 190, without
adjudication of any issue of fact or law, and upon consent and agreement of Respondent and the
PHMSA (the Parties), the Parties agree as follows:
I. General Provisions
1. Respondent acknowledges that as the operator of the Export Facility, Respondent
and the Export Facility are 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. For purposes of this



Consent Agreement, Respondent acknowledges that it received proper notice of the 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.
2. Respondent does not admit or deny any of the alleged conditions or risks identified
in the Notice but agrees, for purposes of this Consent Agreement, to address the alleged conditions
and risks identified in the Notice by completing the actions specified in Part II of this agreement
(Corrective Measures) and to abide by the terms of this Consent Agreement. This Consent
Agreement does not constitute a finding of violation of any Federal law or regulation and may not
be used in any civil or administrative proceeding of any kind as evidence or proof of any fact, fault
or liability, or as evidence of the violation of any law, rule, regulation or requirement, except in a
proceeding to enforce the provisions of this Consent Agreement.
3. After Respondent returns this signed agreement, the PHMSA’s representative will
present it to the Associate Administrator for Pipeline Safety recommending that the Associate
Administrator adopt the terms of this agreement by issuing an administrative order (Consent Order)
incorporating the terms of this Consent Agreement. The terms of this agreement constitute an offer
of settlement until accepted by the Associate Administrator. Once accepted, the Associate
Administrator will issue a Consent Order incorporating the terms of the agreement.
4. Respondent consents to the issuance of the Consent Order, and hereby waives any
further procedural requirements with respect to its issuance. Respondent waives all the rights to
contest the adequacy of notice, or the validity of the Consent Order of this Consent Agreement,
including all rights to administrative or judicial hearings or appeals, except as may be set forth herein.
5. This Consent Agreement shall apply to and be binding upon the PHMSA, and upon
Respondent, its officers, directors and employees, and its successors, assigns, or other entities or
persons otherwise bound by law. Respondent agrees to provide a copy of this Consent Agreement
and any incorporated work plans and schedules to all of Respondent’s officers, employees, and
agents whose duties might reasonably include compliance with this Consent Agreement.
6. For all transfers of ownership or operating responsibility of Respondent’s Export
Facility, Respondent shall provide a copy of this Consent Agreement to the prospective transferee
at least 30 days prior to such transfer and simultaneously provide written notice of the prospective
transfer to the PHMSA Southwest Region Director (Director) who issued the Notice.
7. This Consent Agreement constitutes the final, complete and exclusive agreement
and understanding between the Parties with respect to the settlement embodied in this Consent
Agreement, and resolves any claims that have been or could have been alleged regarding the events
or circumstances described in the Notice. The Parties acknowledge that there are no representations,
agreements, or understandings relating to the settlement other than those expressly contained in this
Consent Agreement, except that the terms of this Consent Agreement may be construed by reference
to the Notice.
8. Nothing in this Consent Agreement affects or relieves Respondent 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. Nothing in this Consent
Agreement alters the PHMSA’s right of access, entry, inspection, and information gathering or,
except with respect to the matters expressly settled under this Consent Agreement, the PHMSA’s
authority to bring enforcement actions against Respondent pursuant to the Federal pipeline safety
laws, the regulations and orders issued thereunder, or any other provision of Federal or State law.
9. This Consent Agreement does not waive or modify any Federal, State, or local laws
or regulations that are applicable to Respondent’s Export Facility. This Consent Agreement is not a
permit, or a modification of any permit, under any Federal, State, local laws or regulations.
Respondent remains responsible for achieving and maintaining compliance with all applicable
Federal, State, and local laws, regulations and permits.
10. This Consent Agreement does not create rights in, or grant any cause of action to,
any third party not party to this Agreement. The U.S. Department of Transportation is not liable for
any injuries or damages to persons or property arising from acts or omissions of Respondent or its
officers, employees, or agents carrying out the work required by this Consent Agreement.
Respondent agrees to hold harmless the U.S. Department of Transportation, its officers, employees,
agents and representatives from any and all causes of action arising from any acts or omissions of
Respondent or its contractors in carrying out any work required by this Consent Agreement.
11. by PHMSA.
The terminology “after the Agreement” shall mean after the Consent Order is issued
II. Corrective Measures
12. Upon issuance of the Consent Order, Respondent agrees to perform the Corrective
Measures set forth below.
13. Procedures Evaluation. Within 30 days after the Agreement, Respondent shall
submit, for approval by the Director, the name of the proposed third-party that FLNG intends to
use for the procedures evaluation. Within 60 days after receiving approval, Respondent shall
evaluate, using the third-party, the current operations and maintenance manual and training
requirements associated with personnel responsible for operations within the newly constructed
FLNG Export Terminal. The review must include whether the procedures have adequate details,
safety provisions, and instructions to properly implement the procedures. The evaluation must also
include a determination that the roles and responsibilities of all personnel are clearly defined for
each task and the level(s) of required approvals are clearly stated. The evaluation must also
prescribe mandatory training requirements for the procedures and any re-training requirements that
are needed as a result of the August 1, 2019 incident or revisions to the procedures that result from
the evaluation. After completion, the procedures evaluation must be submitted to the Director for
review and acceptance.
14. Procedures Revisions. Within 90 days of completion of Item 13 and acceptance by
the Director, Respondent shall complete the procedures revisions and training identified by the
evaluation and submit to the Director for review and acceptance.



15. Complete Inventory. Within 30 days after the Agreement, Respondent shall submit
to the Director (or designees of the PHMSA Southwest Region) a complete inventory of piping
installed in the Export Facility using all Heat Numbers associated with failed 6-inch and 2-inch
piping, including but not limited to Heat Number 301881, manufactured by Salzgitter Mannesmann
Stainless Tubes France. The documentation shall include, for each piping segment, P&ID’s
showing the locations of all identified piping, manufacturing specifications, lengths, diameters,
wall thicknesses, and specified minimum yield strength (SMYS), intended service (e.g., natural
gas, LNG, refrigerant), maximum design pressures, and normal operating pressures.
16. Records Evaluation. Within 30 days after the Agreement, Respondent shall
submit to the Director a tabulation showing results of an evaluation of materials properties of all
Heat Numbers associated with the failed 6-inch and 2-inch piping, including but not limited to
Heat Number 301881, manufactured by Salzgitter Mannesmann Stainless Tubes France SAS.
This evaluation shall include a review and tabulation of the shop fabrication and site installation
documentation, including materials specifications, MTR data, NDE reports, PMI reports and
pressure test records.
17. Remedial Work Plan. Within 90 days after completing Items 13, 14, 15, 16, 18
and 19, FLNG must prepare and submit a Remedial Work Plan (RWP) to the Director for approval
prior to commencing any work specified by the RWP. The remedial work plan must include
actions to implement any actions and remedy any issues identified by Items 13, 14, 15, 16 and 19.
The RWP must also include actions to remedy any other Identified Risk Conditions determined
by the failure analysis and/or internal investigation of the incident. This may include, but is not
limited to, removal of all substandard piping, fittings, and appurtenances. An Identified Risk
Condition includes (1) performing any operation without an approved procedure; and (2) use of
piping materials, fittings, and appurtenances that do not meet design specifications.
a. The Director may incrementally approve parts of the RWP without approving the
entire RWP.
b. Once approved by the Director, the approved RWP increments or entire RWP is
considered incorporated by reference into this Safety Order or Consent
Agreement.
c. The RWP must specify the tests, inspections, assessments, evaluations, and
remedial measures FLNG will use to verify the integrity of the piping material,
fittings and appurtenances. It must address all known or suspected factors and
causes of the August 1, 2019 failure.
d. The RWP must include provisions for the following:
1. Integrate the results of the metallurgical testing, failure analysis, and other
corrective actions required by this Agreement with all relevant pre- existing
operational and assessment data for the Identified Risk Condition. Pre-
existing operational data includes, but is not limited to, construction,
operations, maintenance, testing, repairs, prior metallurgical analyses, and
any third-party consultation information.
2. Determine if conditions similar to those contributing to the failure on
August 1, 2019, are likely to exist elsewhere within the Export Terminal.
3. Conduct additional field tests, inspections, assessments, and/or evaluations
to determine whether, and to what extent, the conditions associated with the



failure on August 1, 2019, are present elsewhere within the Export
Terminal. At a minimum, this process must consider all failure causes and
specify the use of mechanical and metallurgical testing, pressure testing, or
other tests, inspections, assessments, and evaluations appropriate for the
failure causes.
Note: FLNG may use the results of previous tests, inspections, assessments,
and evaluations if approved by the Director, provided the results ofthe tests,
inspections, assessments, and evaluations are analyzed with regard to the
factors known or suspected to have caused the August 1, 2019, failure.
4. Describe the inspection and repair criteria Respondent will use to
prioritize, evaluate, and repair anomalies, imperfections, and other
identified integrity threats. Include a description of how any defects will
be graded and a schedule for repairs or replacement.
5. Based on the known history and condition of affected piping and
components included in the Identified Risk Condition, describe the
methods Respondent will use to repair, replace, or take other corrective
measures to remediate the conditions associated with the pipeline failure
on August 1, 2019, and to address other known integrity threats to the
piping material, fittings and appurtenances. Any testing showing that any
pipes do not have the strength and mechanical properties represented by
the design specifications will require such piping be replaced, additional
testing in additional locations to confirm the piping not identified for
removal meets such design specifications, or other remediation of the
noncompliance to the satisfaction of the Director. The repair,
replacement, or other corrective measures must meet the criteria specified
in Item 17(d)(4) above.
6. Define and implement continuing long-term periodic testing and integrity
verification measures to ensure the ongoing safe operation of the Export
Terminal considering the results of the analyses, inspections, evaluations,
and corrective measures undertaken pursuant to the Agreement.
e. Include a proposed schedule for completion of the RWP.
f. Respondent must revise the RWP as necessary to incorporate new information
obtained during the failure investigation and remedial activities, to incorporate the
results of actions undertaken pursuant to this Agreement, and/or to incorporate
modifications required by the Director.
1. Submit any plan revisions to the Director for prior approval.
2. The Director may approve plan revisions incrementally.
g. Implement the RWP as it is approved by the Director, including any
revisions to the plan.



18. Mechanical and Metallurgical Testing Protocols. Within 30 days after
completing Items 15 and 16 of this Agreement, FLNG must prepare and submit mechanical and
metallurgical testing protocols to the Director for approval prior to any sample removal or testing.
At a minimum, the protocols must include the following:
a. Procedures for the chain-of-custody for all parties handling, transporting or
otherwise taking possession of the piping sample to be tested, including
Respondent, its contractors, transporters, consultants and the materials testing
laboratory
b. Provisions for testing to be performed with PHMSA representative(s) present.
Respondent must provide to the Director, the date, time and location of the
testing and confirm availability of PHMSA inspector to be present during
removal of test samples and mechanical/metallurgical testing.
c. Visual and optical stereomicroscope examination, scanning electron microscope
(SEM) examination, energy dispersive X-ray spectroscopy (EDS)
microanalysis, metallographic examination, chemical composition analysis
using optical emission spectroscopy (OES), and mechanical testing via a
longitudinal full wall thickness tensile test, longitudinal and transverse Charpy
V-notch (CVN) impact test and microhardness test.
d. Destructive and non-destructive testing of both the pipe body material and
associated welds.
19. Mechanical and Metallurgical Testing of Pipe Samples and Welds. Within 60
days after completing Item 18, Respondent shall perform additional mechanical and metallurgical
testing on a statistically significant number of specimens. The following will be performed as part
of the additional testing:
a. b. c. d. e. Documentation of the chain-of-custody for all parties handling, transporting or
otherwise taking possession of the piping sample to be tested, including
Respondent, its contractors, transporters, consultants and the materials testing
laboratory.
Prior to the testing, the mechanical and metallurgical testing protocol shall be
approved by the Director.
Prior to the mechanical and metallurgical testing, provide the Director with the
scheduled date, time and location of the testing to allow an opportunity for a
PHMSA representative to witness the testing.
Performance of visual and optical stereomicroscope examination, non-destructive
evaluation of welds, scanning electron microscope (SEM) examination, energy
dispersive X-ray spectroscopy (EDS) microanalysis, metallographic examination,
chemical composition analysis using optical emission spectroscopy (OES), and
mechanical testing via a longitudinal full wall thickness tensile test, longitudinal
and transverse Charpy V-notch (CVN) impact test and microhardness test.
Distribution of all analysis and reports, whether draft or final and in their entirety,
to the Director at the same time they are made available to Respondent.



20. Verification of Safeguards. Within 30 days after the completion of all requirements
in the RWP, Respondent shall submit to the Director a written summary of the revisions to the
applicable cooldown procedures, P&ID’s, and evidence of implementation for the purpose of
creating procedural safeguards to prevent similar situations from occurring in the future.
21. Consent Order Documentation Report (CODR). Respondent must create and
submit on a monthly basis, a CODR. The intent is for the CODR to summarize all actions taken
and documentation created in performing the requirements of the Consent Order. The CODR must
also identify any activities or documentation for the period reflected in previous report activities so
the status of each item in the Consent Order is reflected in each report. When the Respondent has
concluded all the required items in the Consent Order, it will submit a final CODR to the Director.
This will allow the Director to complete a thorough review of all actions taken by the Respondent
with regards to the Consent Order prior to approving the closure of the Consent Order.
22. The Director may grant an extension of time for compliance with any of the terms
of the Consent Agreement upon a written request timely submitted demonstrating good cause for
an extension. The Director shall respond in writing to any such request.
23. Respondent may appeal any decision of the Director to the Associate Administrator
for Pipeline Safety. Decisions of the Associate Administrator are final.
III. Review and Approval Process
24. With respect to any submission under Part II of this Consent Agreement that requires
the approval of the Director, the Director may: (a) approve, in whole or in part, the submission, (b)
approve the submission on specified conditions; (c) disapprove, in whole or in part, the submission,
or (d) any combination of the foregoing. If the Director approves, approves in part, or approves with
conditions, Respondent will take all actions as approved by the Director, subject to Respondent’s
right to invoke the dispute resolution procedures in Section IV with respect to any conditions the
Director identifies. If the Director disapproves all or any portion of the submission, the Director will
provide Respondent with a written notice of the deficiencies. Respondent will correct all deficiencies
within the time specified by the Director and resubmit it for approval.
IV. Dispute Resolution
25. The Director and Respondent will informally attempt to resolve any disputes arising
under this Consent Agreement. If Respondent and the Director are unable to informally resolve the
dispute within 15 days, Respondent may request in writing, within 10 days, a written determination
resolving the dispute from the Associate Administrator for Pipeline Safety 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 the PHMSA’s consideration of 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.



V. Enforcement
26. This Consent Agreement, as adopted by the Consent Order, is subject to all
enforcement authorities available to the PHMSA under 49 U.S.C. § 60101 et seq. and 49 C.F.R. Part
190.
VI. Recordkeeping and Information Disclosure
22. Unless otherwise required by this Consent Agreement, Respondent agrees to
maintain records demonstrating compliance with all requirements of this Consent Agreement for a
period of at least 5 years following completion of all work to be performed. For any reports, plans
or other deliverables required to be submitted to the PHMSA pursuant to this Consent Agreement,
Respondent may assert a claim of business confidentiality or other protections applicable to the
release of information by the PHMSA, covering part or all of the information required to be
submitted to the PHMSA pursuant to this agreement in accordance with C.F.R. Part 7. Respondent
must mark the claim of confidentiality in writing on each page, and include a statement specifying
the grounds for each claim of confidentiality. The PHMSA determines release of any information
submitted pursuant to this Consent Agreement in accordance with 49 C.F.R. Part 7, the Freedom of
Information Act, 5 U.S.C. § 552, DOT and/or the PHMSA policies, and other applicable regulations
and Executive Orders.
VII. Effective Date
23. The “Effective Date” as used herein is the date on which the Consent Order is issued
by the Associate Administrator incorporating the terms of this Agreement. Unless specified to the
contrary, all deadlines for actions required by this Consent Agreement run from the Effective Date
of the Consent Order.
VIII. Modification
24. The terms of this Consent Agreement may be modified by mutual agreement of
the Parties. Such modifications must be in writing and signed by both parties.
IX. Termination
25. This Consent Agreement terminates upon completion of all terms set forth in Part
II (Corrective Measures) as determined by the Director. Respondent may request written
confirmation from the PHMSA when this Consent Agreement is terminated and the Director will
provide such confirmation. Nothing in this Consent Agreement prevents Respondent from
completing any of the obligations earlier than the deadlines provided for in this Agreement.
X. Ratification
26. The Parties’ undersigned representatives certify that they are fully authorized to
enter into the terms and conditions of this Consent Agreement and to execute and legally bind such



party to this document.
27. The Parties hereby agree to all conditions and terms of this Consent Agreement.
For Respondent:
_______________________________
Mark Mallett, Senior Vice President, Operations & Projects
_______________________________
Date
For the PHMSA:
_______________________________
Mary L. McDaniel, Director, Southwest Region
_______________________________
Date

420193002S_Notice of Proposed Safety Order_08292019_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
August 29, 2019
Michael S. Smith
Chairman & CEO
Freeport LNG Development, L.P.
333 Clay Street
Suite 5050
Houston, Texas 77002
CPF 4-2019-3002S
Dear Mr. Smith:
Enclosed is a Notice of Proposed Safety Order (Notice) issued in the above-referenced case.
The Notice proposes that you take certain measures to ensure facility safety with respect to
Freeport LNG Development, L.P.’s Export Facility located on Quintana Island, Texas. Your
options for responding are set forth in the Notice. Your receipt of the Notice constitutes service
of that document under 49 C.F.R. § 190.5.
We look forward to a successful resolution to ensure liquefied natural gas facility safety.
Please direct any questions on this matter to me at (713) 272-2847.
Sincerely,
Mary L. McDaniel, P.E.
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
Enclosure: Notice of Proposed Safety Order
cc: Mr. Alan K. Mayberry, Associate Administrator for Pipeline Safety, OPS, PHMSA
Ms. Linda Daugherty, Deputy Associate Administrator for Field Operations, OPS, PHMSA



Mr. Mark Roscoe, FERC Regulatory Compliance and Warranty Manager, Freeport LNG
Development, L.P.
Mr. Michael Stephenson, Regulatory Compliance Superintendent, Freeport LNG
Development, L.P.
Mr. Mark Mallet, Vice President, Operations & Engineering, Freeport Development, L.P.
2



3
DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
____________________________________
In the Matter of )
Freeport LNG Development, L.P., ) CPF No. 4-2019-3002S
)
)
)
Respondent )
____________________________________)
NOTICE OF PROPOSED SAFETY ORDER
Background and Purpose
Pursuant to Chapter 601 of title 49, United States Code, the Pipeline and Hazardous Materials
Safety Administration (PHMSA) has initiated an investigation of the safety of Freeport LNG
Development, L.P.’s (FLNG or Respondent) Quintana Island Export Facility following an
August 1, 2019, unintended release of natural gas after a piping failure occurred during
commissioning.
As a result of the investigation, it appears that a condition exists on your liquefied natural gas
(LNG) facility that poses a pipeline integrity risk to public safety, property, or the environment.
Pursuant to 49 U.S.C. § 60117(l), PHMSA issues this Notice of Proposed Safety Order, notifying
you of the preliminary findings of the investigation, and proposing that you take measures to ensure
that the public, property, and the environment are protected from the potential risk.
Preliminary Findings
• The FLNG Export Facility is located on Quintana Island, Texas. The Export Facility
includes three parallel liquefaction trains (Trains 1, 2, and 3). Each train is capable of
producing approximately 4.4 million metric tons per annum of LNG for export, which
equates to a total liquefaction capacity of approximately 1.8 billion cubic feet per day of
natural gas.
• The FLNG Export Facility is located in a maritime region adjacent to the Gulf of Mexico,
experiences high humidity throughout a major portion of the year, and is subject to
tropical storms and hurricanes. The land used to construct the FLNG Export Facility is
on Quintana Island separated from the main portion of Freeport, Texas by the Gulf
Intracoastal Waterway (GIWW). The FLNG site is low-lying with little elevation
difference from the surrounding water and had to be stabilized prior to construction.



4
• The FLNG Export Facility is located within an ecologically sensitive area and is also
near recreational areas that include beaches and waterways used by the public.
Additionally, the facility is located on the GIWW. The GIWW stretches from St. Marks,
Florida to Brownsville, Texas. It is the nation’s third busiest waterway with the Texas
portion handling over 58 percent of its traffic.
• The 2010 U.S. Census reported Quintana, Texas had a population of 56. Freeport, Texas,
which is just across the GIWW from Quintana, has a population of approximately 12,000
residents. Being on the Gulf of Mexico, the area also attracts recreational visitors and is
close to Surfside Beach and Bryan Beach State Park.
• On August 1, 2019, FLNG was performing a cool down operation as part of the steps to
commission Train 1 of the newly constructed liquefaction facility. FLNG experienced a
failure when attempting to reduce the time required to properly cool down the facility.
FLNG flowed high pressure chilled natural gas at approximately 917 pounds per square
inch (psig) through bypass piping into piping designed for a maximum operating pressure
of 90 psig. The bypass line consequently failed around the area where a branch weld
joined the pipes. The failure of the bypass line resulted in an unintended release of natural
gas.
• FLNG was in the process of a cool down operation that was outside the design parameters
of the system.
• FLNG informed the Federal Energy Regulatory Commission (FERC) of the event the
same day, August 1, 2019. FERC notified PHMSA, Office of Pipeline Safety (OPS),
Southwest Region staff of the event on August 6, 2019. PHMSA began its initial onsite
investigation on August 7, 2019. FLNG did not make notification of the incident to the
National Response Center.
• FLNG’s preliminary investigation revealed that the piping was subjected to vibration as
a result of this operation. A third-party forensic laboratory analysis concluded that there
were potential issues with the characteristics of the weld and the failed segment of piping
had a “lean chemistry.” Samples tested for materials verification also indicated the
ultimate tensile strength was below the manufacturing standard for piping intended for
service subject to 49 CFR Part 193. The failed piping was manufactured by Salzgitter
Mannesmann Stainless Tubes (Salzgitter Mannesmann). PHMSA acquired
documentation from FLNG indicating there may be approximately 1,408 feet of 6-inch
piping from Salzgitter Mannesmann’s Heat Number associated with the failed piping
installed at various locations throughout the FLNG facility
• FLNG continues to operate the liquefaction train; the liquefaction facility may contain
similarly flawed piping that does not meet design specifications.
• The failed piping was seamless stainless-steel pipe manufactured to ASTM/ASME
SA312 TP 304/304L Heat No: 301881; Manufactured by Salzgitter Mannesmann in
Montbard, France.



5
• FLNG reported the incident resulted in a release of approximately 315,000 cubic feet of
natural gas.
• FLNG provided PHMSA with a failure analysis report conducted by the third party
forensic laboratory capturing the results of mechanical and chemical testing. The report
found the fracture surface exhibited signs of brittle fracture possibly indicating that the
material and/or weld did not possess the characteristics required for cryogenic service.
Proposed Issuance of Safety Order
Section 60117(l) of Title 49, United States Code, provides for the issuance of a safety order, after
reasonable notice and the opportunity for a hearing, requiring corrective measures, which may
include physical inspection, testing, repair, or other actions, as appropriate. The basis for making
the determination that an LNG facility1 has a condition or conditions that pose a pipeline integrity
risk to public safety, property, or the environment is set forth both in the above-referenced statute
and 49 C.F.R. § 190.239, a copy of which is enclosed.
After evaluating the foregoing preliminary findings of fact and considering the hazardous nature
of the product, the temperature and pressure conditions required by the process, the characteristics
of the geographical area where the LNG facility is located, the circumstances that resulted in the
failure, and the likelihood that the issues could affect the safety of other areas of the LNG facility,
it appears that continued operation of the affected LNG Facility without corrective measures may
pose an integrity risk to public safety, property, or the environment.
Accordingly, PHMSA issues this Notice of Proposed Safety Order to notify Respondent of the
proposed issuance of a safety order and to propose that Respondent take measures specified herein
to address the potential risk.
Response to this Notice
In accordance with § 190.239, you have 30 days following receipt of this Notice to submit a written
response to the official who issued the Notice. If you do not respond within 30 days, this
constitutes a waiver of your right to contest 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 Safety Order. In your response, you may notify that official that you intend to comply with the
terms of the Notice as proposed, or you may request that an informal consultation be scheduled
(you will also have the opportunity to request an administrative hearing before a safety order is
issued). Informal consultation provides you with the opportunity to explain the circumstances
associated with the risk conditions alleged in the notice and, as appropriate, to present a proposal
for a work plan or other remedial measures, without prejudice to your position in any subsequent
hearing. If you and PHMSA agree within 30 days of informal consultation on a plan and schedule
1 Section 190.239 applies to “a particular pipeline facility [that] has a condition or conditions that pose a pipeline
integrity risk to public safety, property, or the environment.” An LNG facility is defined in § 193.2007 as “a
pipeline facility that is used for liquefying natural gas or synthetic gas or transferring, storing, or vaporizing
liquefied natural gas.” Therefore, LNG facilities are subject to § 190.239.



6
for you to address each Identified Risk Condition, we may enter into a written consent agreement
(PHMSA would then issue an administrative consent order incorporating the terms of the
agreement). If a consent agreement is not reached, or if you have elected not to request informal
consultation, you may request an administrative hearing in writing within 30 days following
receipt of the Notice or within 10 days following the conclusion of an informal consultation that
did not result in a consent agreement, as applicable. Following a hearing, if the Associate
Administrator finds the facility to have a condition that poses a pipeline integrity risk to the public,
property, or the environment in accordance with § 190.239, the Associate Administrator may issue
a safety order
Be advised that all material you submit in response to this enforcement action is subject to being
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).
In your correspondence on this matter, please refer to CPF 4-2019-3002S and for each document
you submit, please provide a copy in electronic format whenever possible.
Proposed Corrective Measures
Pursuant to 49 U.S.C. § 60117(l) and 49 C.F.R. § 190.239, PHMSA proposes to issue to FLNG a
safety order incorporating the following remedial requirements with respect to its Export Facility
located on Quintana Island, Texas:
1. 2. Complete Invento
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