{"operation":"document","citation":"CPF 420193004","title":"VENTURE GLOBAL CALCASIEU PASS, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-11-04","effective_on":null,"summary":"CLOSED notice of probable violation citing 191.22(a), 191.22(b), 191.22(c)(1)(i), 191.22(c)(1)(ii), 191.22(c)(1)(iii), 191.22(c)(1)(iv).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420193004.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420193004.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420193004","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420193004","body":"Notice of Probable Violation involving VENTURE GLOBAL CALCASIEU PASS, LLC. PHMSA's enforcement data identifies the cited regulations as 191.22(a),  191.22(b),  191.22(c)(1)(i),  191.22(c)(1)(ii),  191.22(c)(1)(iii),  191.22(c)(1)(iv). The case was opened on 2019-11-04 and is reported as closed as of 2020-06-15. Proposed civil penalty: $198,700. Assessed civil penalty: $59,300. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420193004_Closure Letter_06152020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420193004/420193004_Closure%20Letter_06152020.pdf\n\n420193004_Closure Letter_06152020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420193004/420193004_Closure%20Letter_06152020_text.pdf\n\n420193004_Final Order_05182020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420193004/420193004_Final%20Order_05182020.pdf\n\n420193004_Final Order_05182020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420193004/420193004_Final%20Order_05182020_text.pdf\n\n420193004_NOPV PCP PCO_11042019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420193004/420193004_NOPV%20PCP%20PCO_11042019.pdf\n\n420193004_NOPV PCP PCO_11042019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420193004/420193004_NOPV%20PCP%20PCO_11042019_text.pdf\n\n420193004_Operator Response to Notice_12022019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420193004/420193004_Operator%20Response%20to%20Notice_12022019.pdf\n\n420193004_NOPV PCP PCO_11042019_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 4, 2019\nMichael Sabel\nCo-CEO and Co-Chairman\nVenture Global Calcasieu Pass, LLC\n1001 19th Street North\nArlington, Virginia 22209\nCPF 4-2019-3004\nDear Mr. Sabel:\nFrom March 19, 2019 through May 23, 2019, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of 49 United States Code (U.S.C.) inspected the construction of your LNG facility in Cameron,\nLouisiana.\nAs a result of the inspection, it is alleged that you have commit a probable violation of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and the\nprobable violation is:\n\n\n\n1. §191.22 National Registry of Pipeline and LNG Operators\n(a) OPID Request. Effective January 1, 2012, each operator of a gas pipeline, gas\npipeline facility, underground natural gas storage facility LNG plant or LNG facility\nmust obtain from PHMSA an Operator Identification Number (OPID). An OPID is\nassigned to an operator for the pipeline or pipeline system for which the operator has\nprimary responsibility. To obtain an OPID, an operator must complete an OPID\nAssignment Request DOT Form PHMSA F 1000.1 through the National Registry of\nPipeline and LNG Operators in accordance with §191.7.\n(b) OPID validation. An operator who has already been assigned one or more OPID\nby January 1, 2011, must validate the information associated with each OPID through\nthe National Registry of Pipeline, Underground Natural Gas Storage Facility, and\nLNG Operators at http://opsweb.phmsa.dot.gov, and correct that information as\nnecessary, no later than June 30, 2012.\n(c) Changes. Each operator of a gas pipeline, gas pipeline facility, underground\nnatural gas storage facility, LNG plant, or LNG facility must notify PHMSA\nelectronically through the National Registry of Pipeline, Underground Natural Gas\nStorage Facility, and LNG Operators at http://opsweb.phmsa.dot.gov of certain\nevents.\n(1) An operator must notify PHMSA of any of the following events not later\nthan 60 days before the event occurs:\n(i) (ii) (iii) (iv) Construction or any planned rehabilitation, replacement,\nmodification, upgrade, uprate, or update of a facility, other than\na section of line pipe, that costs $10 million or more. If 60-day\nnotice is not feasible because of an emergency, an operator must\nnotify PHMSA as soon as practicable;\nConstruction of 10 or more miles of a new or replacement\npipeline;\nConstruction of a new LNG plant or LNG facility; or\nConstruction of a new underground natural gas storage facility\nor the abandonment, drilling or well workover (including\nreplacement of wellhead, tubing, or a new casing) of an\ninjection, withdrawal, monitoring, or observation well for an\nunderground natural gas storage facility.\nVenture Global Calcasieu Pass, LLC (Venture Global) failed to request an Operator Identification\nNumber (OPID) and notify PHMSA of construction for a new liquefied natural gas (LNG) plant\nprior to commencing work at the proposed site as required by 49 CFR § 191.22. On March 19,\n2019, the Federal Energy Regulatory Commission (FERC) authorized Venture Global to\ncommence full site preparation activities of the Calcasieu Pass Project.\n2\n\n\n\nOn May 2, 2019, PHMSA informed Venture Global that it was required to request an OPID and\nfile a notification of construction with PHMSA 60 days before commencing construction on its\nCalcasieu Pass LNG facility. The PHMSA correspondence provided information to the Operator\nto notify OPS of construction activities. Venture Global did not respond or request an OPID.\nPHMSA inspectors conducted a site visit on May 23, 2019, and discovered that construction\nactivities had commenced, despite Venture Global failing to request an OPID or notifying\nPHMSA of the construction.\nPer 49 CFR § 191.22, operators must request an OPID and notify PHMSA that construction will\ncommence no later than 60-days prior to the start of construction. Venture Global was therefore\nrequired to request an OPID and notify PHMSA of its planned construction no later than March\n20, 2019, assuming that construction began on May 23, 2019. Venture Global failed to comply\nwith either requirement as specified in § 191.22(a) and § 191.22(c), even after PHMSA's email\nreminding it to request an OPID and notify PHMSA of the construction.\nIn order to commence this enforcement action, PHMSA has created OPID (40021) for Venture\nGlobal.\nProposed Civil Penalty\nSnis, 49 pes violation per day the via on pass, are subject to oil platy to a exceed\nseries of violations. For violation occurring on or after November 27, 2018 and before July 31,\n2019, the maximum penalty may not exceed $213,268 per violation per day, with a maximum\npenalty not to exceed $2,132,679. For violation occurring on or after November 2, 2015 and before\nNovember 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a\nmaximum penalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015,\nthe maximum penalty may not exceed $200,000 per violation per day, with a maximum penalty\nnot to exceed $2,000,000 for a related series of violations. Also, for each violation involving LNG\nfacilities, and additional penalty of not more than $79,875 occurring on or after July 31, 2019 may\nbe imposed. For each violation involving LNG facilities, an additional penalty of not more than\n$77,910 occurring on or after November 27, 2018 and before July 31,2019 may be imposed. For\neach violation involving LNG facilities occurring on or after November 2, 2018 and before\nNovember 27, 2018, an additional penalty of not more than $76,352 may be imposed. For each\nviolation involving LNG facilities occurring prior to November 2, 2015, an additional penalty of\nnot more than $75,000 may be imposed. For each violation involving LNG facilities occurring\nprior to November 2, 2015, an additional penalty of not more than $75,000 may be imposed.\nAssessed a civil penalty of $198,700 as follows:\nItem number\nPENALTY\n$198,700\n3\n\n\n\nProposed Compliance Order\nWith respect to item 1 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety\nAdministration proposes to issue a Compliance Order to Venture Global Calcasieu Pass, LLC.\nPlease refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. All\nmaterial you submit in response to this enforcement action may be made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document you must provide a second copy of the\ndocument with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, or request a\nhearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice,\nthis constitutes a waiver of your right to contest the allegations in this Notice and authorizes the\nAssociate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue a Final Order. If you are responding to this Notice, we propose that you\nsubmit your correspondence to my office within 30 days from receipt of this Notice. This period\nmay be extended by written request for good cause.\nIn your correspondence on this matter, please refer to CPF 4-2019-3004 and, for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\ncc: Robert Pender, Co-CEO and Co-Chairman, Venture Global Calcasieu Pass, LLC, 1001\n19th Street North Arlington, Virginia 22209\nFory Musser, Senior Vice President, Development, Venture Global Calcasieu Pass, LLC,\n1001 19th Street North, Arlington, Virginia 22209\n4\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Venture Global a Compliance Order incorporating\nthe following remedial requirements to ensure the compliance of Venture Global with the pipeline\nsafety regulations:\n1. 2. 3. In regard to Item Number 1 of the Notice pertaining to failing to request an Operator\nIdentification Number (OPID) and notify PHMSA of construction of a new LNG\nplant prior to commencing work at the proposed site as required by 49 CFR\n§191.22, Venture Global Calcasieu Pass, LLC must update its Operator Contact\ninformation with the correct contacts for DOT Compliance, the Emergency Contact\n24-7, Normal Operations Contact 24-7, the Executive, NPMS and User Fee no later\nthan 10 days after the final order. The OPID assigned by PHMSA is 40021.\nIn regard to Item Number 1 of the Notice pertaining to failing to request an Operator\nIdentification Number (OPID) and notify PHMSA of construction of a new LNG\nplant prior to commencing work at the proposed site as required by 49 CFR\n§191.22, Venture Global Calcasieu Pass, LLC must submit a construction\nnotification for the Calcasieu Pass LNG facility within 10 days of the Final Order.\nIt is requested (not mandated) that Venture Global Calcasieu Pass, LLC maintain\ndocumentation of the safety improvement costs associated with fulfilling this\nCompliance Order and submit the total to Mary L. McDaniel, P.E., Director,\nSouthwest, Pipeline and Hazardous Materials Safety Administration. It is\nrequested that these costs be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses, and 2) total cost\nassociated with replacements, additions and other changes to pipeline\ninfrastructure.\n5\n\n420193004_Closure Letter_06152020_text.pdf\n\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nJune 15, 2020\nMichael Sabel\nCo-Chief Executive Officer and Co-Chairman\nVenture Global LNG, Inc.\n1001 19th Street North, Suite 1500\nArlington, Virginia 22209\nCPF 4-2019-3004\nDear Mr. Sabel:\nOn May 18, 2020, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\nto Venture Global Calcasieu Pass, LLC, a subsidiary of Venture Global LNG, (Venture Global)\nInc. a Final Order in the above-referenced case. This Final Order included a Compliance Order,\nthat required the respondent to complete all items within 10 days of receiving the Final Order.\nIn your letter dated May 28, 2020, Venture Global responded that all actions required in the\nCompliance Order were completed and payment of the penalty was made on May 26, 2020. Based\non our review, it has been determined that you have complied with the terms of the Final Order\nand that this case is now considered closed.\nThank you for your cooperation in this matter.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n420193004_Final Order_05182020_text.pdf\n\nMay 18, 2020\nVIA ELECTRONIC MAIL TO: msabel@venturegloballng.com\nMr. Michael Sabel\nCo-Chief Executive Officer and Co-Chairman\nVenture Global LNG, Inc.\n1001 19th Street North, Suite 1500\nArlington, Virginia 22209\nRe: CPF No. 4-2019-3004\nDear Mr. Sabel:\nEnclosed please find the Final Order issued in the above-referenced case. It makes one finding\nof violation, assesses a reduced civil penalty of $59,300, and specifies actions that need to be\ntaken by Venture Global Calcasieu Pass, LLC, a subsidiary of Venture Global LNG, Inc., to\ncomply with the pipeline safety regulations. The penalty payment terms are set forth in the Final\nOrder. When the civil penalty has been paid and the terms of the compliance order completed,\nas determined by the Director, Southwest Region, this enforcement action will be closed.\nService of the Final Order by electronic mail is effective upon the date of transmission as\nprovided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Ms. Mary L. McDaniel, PE, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. Keith Larson, General Counsel and Secretary, Venture Global LNG, Inc.,\nklarson@venturegloballng.com\nMs. Susan Olenchuk, Esq., Van Ness Feldman, sam@vnf.com\nMs. Bryn Karaus, Esq., Van Ness Feldman, bsk@vnf.com\nCONFIRMATION OF RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\nIn the Matter of )\nVenture Global Calcasieu Pass, LLC, ) CPF No. 4-2019-3004\na subsidiary of Venture Global LNG, Inc., )\nRespondent. )\n)\n)\n)\n)\nFINAL ORDER\nFrom March 19 through May 23, 2019, pursuant to 49 U.S.C. § 60117, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the liquefied natural gas (LNG) facility\nand records of Venture Global Calcasieu Pass, LLC (Venture Global or Respondent) in\nCameron, Louisiana. Venture Global, a subsidiary of Venture Global LNG, Inc., is developing a\nLNG export facility in Cameron Parish, Louisiana.1\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated November 4, 2019, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the\nNotice proposed finding that Venture Global violated 49 C.F.R. § 191.22 and proposed assessing\na civil penalty of $198,700 for the alleged violation. The Notice also proposed ordering\nRespondent to take certain measures to correct the alleged violation.\nVenture Global LNG, Inc., on behalf of Venture Global, responded to the Notice by letter dated\nDecember 2, 2019 (Response). The company did not contest the allegation of violation but\nprovided an explanation of its actions and requested that the proposed civil penalty be reduced.\nRespondent did not request a hearing and therefore has waived its right to one.\n1 Venture Global website, available at http://venturegloballng.com/calcasieu-pass/#.XnkAONJKg2w (last accessed\nMay 5, 2020).\n\n\n\nCPF No. 4-2019-3004\nPage 2\nFINDING OF VIOLATION\nIn its Response, Venture Global did not contest the allegation in the Notice that it violated 49\nC.F.R. Part 191, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 191.22, which states, in\nrelevant part:\n§ 191.22 National Registry of Pipeline and LNG Operators.\n(a) OPID request. Effective January 1, 2012, each operator of a gas\npipeline, gas pipeline facility, underground natural gas storage facility,\nLNG plant or LNG facility must obtain from PHMSA an Operator\nIdentification Number (OPID). An OPID is assigned to an operator for the\npipeline or pipeline system for which the operator has primary\nresponsibility. To obtain an OPID, an operator must complete an OPID\nAssignment Request DOT Form PHMSA F 1000.1 through the National\nRegistry of Pipeline, Underground Natural Gas Storage Facility, and LNG\nOperators in accordance with § 191.7.\n(b) OPID validation. An operator who has already been assigned one or\nmore OPID by January 1, 2011, must validate the information associated\nwith each OPID through the National Registry of Pipeline, Underground\nNatural Gas Storage Facility, and LNG Operators at\nhttp://opsweb.phmsa.dot.gov, and correct that information as necessary, no\nlater than June 30, 2012.\n(c) Changes. Each operator of a gas pipeline, gas pipeline facility,\nunderground natural gas storage facility, LNG plant, or LNG facility must\nnotify PHMSA electronically through the National Registry of Pipeline,\nUnderground Natural Gas Storage Facility, and LNG Operators at\nhttp://opsweb.phmsa.dot.gov of certain events.\n(1) An operator must notify PHMSA of any of the following events not\nlater than 60 days before the event occurs:\n(i) …\n(iii) Construction of a new LNG plant or LNG facility;\nThe Notice alleged that Respondent violated 49 C.F.R. § 191.22(a) & (c)(1)(iii) by failing to\nobtain an operator identification number (OPID) from PHMSA and failing to timely notify\nPHMSA of construction of a new LNG facility. Specifically, the Notice alleged that on May 2,\n2019, PHMSA informed Venture Global that it was required to request an OPID from PHMSA and\nto file a notification of construction with PHMSA of its new Calcasieu Pass LNG facility 60 days\nbefore commencing construction. PHMSA inspectors conducted a site visit on May 23, 2019, and\ndiscovered that construction activities on the new LNG facility had already commenced, despite\nVenture Global failing to obtain an OPID and to timely notify PHMSA of the start of construction.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 191.22(a) & (c)(1)(iii) by failing to\nobtain an OPID from PHMSA and failing to timely notify PHMSA of construction of a new\n\n\n\nCPF No. 4-2019-3004\nPage 3\nLNG facility.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations.2 In determining the amount of a civil penalty under 49 U.S.C.\n§ 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,\ncircumstances, and gravity of the violation, including adverse impact on the environment; the\ndegree of Respondent’s culpability; the history of Respondent’s prior offenses; any effect that\nthe penalty may have on its ability to continue doing business; and the good faith of Respondent\nin attempting to comply with the pipeline safety regulations. In addition, I may consider the\neconomic benefit gained from the violation without any reduction because of subsequent\ndamages, and such other matters as justice may require. The Notice proposed a total civil\npenalty of $198,700 for the violation cited above.\nItem 1: The Notice proposed a civil penalty of $198,700 for Respondent’s violation of 49\nC.F.R. § 191.22(a) & (c)(1)(iii), for failing to obtain an OPID from PHMSA and failing to timely\nnotify PHMSA of construction of a new LNG facility. In its Response, Venture Global\nrequested a reduction of the proposed civil penalty for several reasons. First, it noted that this\nwas the first violation by the company. Second, Venture Global stated that the violation was\nunintentional. Third, the company noted that the assumptions upon which the proposed civil\npenalty were calculated did not reflect the actual circumstances surrounding the violation.3 I will\naddress each argument separately below.\nFirst, Venture Global states that this is the company’s first violation of the federal Pipeline\nSafety Laws and therefore the penalty should be reduced. I find this argument unpersuasive.\nThe Pipeline Safety Violation Report, which was relied upon in this case to calculate the\nproposed civil penalty, accounts for prior offenses, and accurately notes that there were no\nprevious violations against the company in the last five years.4 Therefore, I find no reason to\nreduce the penalty based on the fact that this is Respondent’s first violation of the federal\nPipeline Safety Regulations.\nSecond, Respondent states that the violation was unintentional. Specifically, it notes that\nPHMSA’s May 2, 2019 email notifying the company that it must request an OPID and notify\nPHMSA of construction of the new LNG facility 60 days in advance of the start of construction,\n2 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.\n3 Response, at 1.\n4 Pipeline Safety Violation Report (Violation Report) at 2 (Oct. 31, 2019) (on file with PHMSA). PHMSA’s statute\nof limitations is five years pursuant to 28 U.S.C. § 2462.\n\n\n\nCPF No. 4-2019-3004\nPage 4\nwent to the “spam” email folder of the Venture Global employee.. Therefore, Venture Global\nasserted that it did not “deliberately disregard the email,” and that it was simply an\nadministrative oversight.5\nIn evaluating the penalty amount, I have reviewed the penalty assessment criteria in the\nViolation Report and how the “culpability” factor, in particular, was applied. In that section of\nthe report, the Director selected the option alleging that the operator “made a deliberate decision\nnot to comply with an applicable requirement.”6 In her Region Recommendation, the Director\nnoted that the Region had previously communicated with the Venture Global employee who\nreceived the May 2, 2019 email one month prior in April 2019.7 Specifically, on April 8, 2019,\nPHMSA emailed this Venture Global employee with instructions on how to find information for\nobtaining an OPID and other LNG frequently asked questions on PHMSA’s website.8 The\nVenture Global employee subsequently responded via email to PHMSA and said “got it.”9\nAdditionally, on May 16, 2019, the PHMSA inspector who sent the May 2, 2019 email received\na phone call from the same Venture Global employee, asking about obtaining an OPID.10 None\nof these facts were challenged or refuted by Respondent.\nInstead, the only issue here is the appropriate level of culpability to assign to this violation.\nAlthough Venture Global did not provide any evidence demonstrating that the May 2, 2019\nemail was inadvertently sorted to a spam folder, I also do not believe that there is any convincing\nevidence from PHMSA to prove a “deliberate” or willful failure to comply with the regulation.\nDemonstrating that an operator intentionally ignored its regulatory obligations is a high\nevidentiary threshold, and the record falls short in proving Venture Global deliberately avoided\nregulatory compliance. Even the PHMSA inspector who reminded Venture Global to obtain an\nOPID said that Venture Global “probably just forgot.”11 I agree.\nOn the other hand, the facts of this case convince me that Venture Global’s conduct is more\nculpable than a mere failure “to comply with a requirement that was clearly applicable.”\nAlthough Venture Global’s culpability does not rise to the level of a deliberate decision to ignore\na regulatory requirement, the company failed time and again to obtain an OPID and to provide an\nimportant construction notification to PHMSA, despite clear and direct instruction from PHMSA\nto do so. I find Venture Global’s approach to PHMSA’s regulatory requirements almost\nlackadaisical, especially considering that the Violation Report contains numerous exhibits\n5 Response, at 1-2.\n6 Violation Report, at 11.\n7 In the Region Recommendation, the Director noted that “[t]his employee was the main point of contact between\nPHMSA's Engineering Division and Calcasieu Pass for thermal radiation and flammable vapor gas evaluations during\nthe facility siting process.” Region Recommendation, at 2 (Dec. 19, 2019) (on file with PHMSA).\n8 Violation Report, at Exhibit A.\n9 Id.\n10 Region Recommendation, at 2.\n11 Id.\n\n\n\nCPF No. 4-2019-3004\nPage 5\nevidencing Venture Global’s strict compliance with FERC’s regulations for its new LNG\nfacility.\nTherefore, based upon a review of the record, I find that Respondent’s level of culpability is\nlower than a deliberate violation but higher than a simple failure to comply with a requirement\nthat was clearly applicable. In addition to the normal penalty assessment criteria that comprise a\nproposed penalty, PHMSA may also consider such “other matters as justice may require.” In\nthis case, Part E10 of the Violation Report included information that is appropriate to consider\nhere. It explained why this alleged violation should be considered more serious than many\nothers.12 It stated that the failure of an operator to request an OPID and to provide notice of\nconstruction of an LNG facility “results in PHMSA not having any official contact information\nor record of responsible individuals” and “deprives the agency of the opportunity to review and\ndesign and inspect the construction for compliance with the applicable regulations and standards\nneeded to protect public safety and the environment.”13\nWithout timely receiving these notifications from operators, PHMSA cannot plan and prepare for\nsafety inspections. In this case, Venture Global began construction activity in March 2019, two\nmonths before PHMSA was able to conduct an onsite safety inspection.14 Therefore, by failing\nto heed PHMSA’s instruction to obtain an OPID and timely notify the agency of construction,\nVenture Global disregarded a critical safety requirement that warrants a higher penalty than a\nsimple failure to follow an applicable requirement.\nFinally, Venture Global stated that it acted in good faith. The good-faith assessment criterion is\nnot targeted at the operator’s system-wide approach to regulatory compliance, but instead\nfocuses solely on the efforts taken by the operator to comply with the requirement.15 Even\nthough Venture Global called PHMSA on May 16, 2019, inquiring about an OPID, the company\nfailed to take any substantive action to comply with § 191.22. Instead, I note above that PHMSA\nwent above and beyond to remind the operator of its regulatory obligations under this section\nthrough email correspondence and phone calls, but Venture Global simply failed to take action.\nAs a result, I find that Venture Global provided no reasonable justification for its non-\ncompliance, and I will not further reduce the proposed civil penalty based on this assessment\ncriterion.\nBased upon the foregoing, I assess Respondent a reduced civil penalty of $59,300 for violation\nof 49 C.F.R. § 191.22(a) & (c)(1)(iii).\nPayment of the civil penalty must be made within 20 days of service. Federal regulations (49\nC.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\n12 Violation Report, at 12.\n13 Id.\n14 Id., at Exhibit E.\n15 Id., at 12.\n\n\n\nCPF No. 4-2019-3004\nPage 6\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169.\nThe Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the $59,300 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49\nC.F.R. § 191.22(a) & (c)(1)(iii). Under 49 U.S.C. § 60118(a), each person who owns or operates\na pipeline facility is required to comply with the applicable safety standards established under\nchapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,\nRespondent is ordered to take the following actions to ensure compliance with the pipeline safety\nregulations applicable to its operations:\n1. With respect to the violation of § 191.22(a) & (c)(1)(iii) (Item 1), Respondent\nmust update its Operator Contact information with the correct contacts for DOT\nCompliance, the Emergency Contact 24-7, the Executive, the National Pipeline\nMapping System (NPMS), and User Fee no later than 10 days of receipt of the Final\nOrder. Respondent must also submit a construction notification to PHMSA for its\nCalcasieu Pass LNG facility within 10 days of receipt of the Final Order.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nIt is requested (not mandated) that Respondent maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the total to the\nDirector. It is requested that these costs be reported in two categories: (1) total cost associated\nwith preparation/revision of plans, procedures, studies and analyses; and (2) total cost associated\nwith replacements, additions and other changes to pipeline infrastructure.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for\neach day the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court of the United States.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\n\n\n\nCPF No. 4-2019-3004\nPage 7\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this\nFinal Order by Respondent. Any petition submitted must contain a statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. The filing of a petition automatically stays\nthe payment of any civil penalty assessed. The other terms of the order, including corrective\naction, remain in effect unless the Associate Administrator, upon request, grants a stay.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nMay 18, 2020\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":32070}