{"operation":"document","citation":"CPF 420201001M","title":"FREEPORT LNG DEVELOPMENT, L.P. — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-01-27","effective_on":null,"summary":"CLOSED notice of amendment citing 192.605(b)(1), 192.605(c)(4), 192.615(b)(2), 192.615(b)(3), 192.805(i).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420201001m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420201001m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420201001m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420201001M","body":"Notice of Amendment involving FREEPORT LNG DEVELOPMENT, L.P.. PHMSA's enforcement data identifies the cited regulations as 192.605(b)(1),  192.605(c)(4),  192.615(b)(2),  192.615(b)(3),  192.805(i). The case was opened on 2020-01-27 and is reported as closed as of 2020-04-15. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420201001M_ Closure Letter_04152020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420201001M/420201001M_%20Closure%20Letter_04152020.pdf\n\n420201001M_ Closure Letter_04152020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420201001M/420201001M_%20Closure%20Letter_04152020_text.pdf\n\n420201001M_Notice of Amendment_01272020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420201001M/420201001M_Notice%20of%20Amendment_01272020.pdf\n\n420201001M_Notice of Amendment_01272020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420201001M/420201001M_Notice%20of%20Amendment_01272020_text.pdf\n\n420201001M_Operator Response to Notice_02102020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420201001M/420201001M_Operator%20Response%20to%20Notice_02102020.pdf\n\n420201001M_ Closure Letter_04152020_text.pdf\n\nELECTRONIC MAIL- RETURN RECEIPT REQUESTED\nApril 15, 2020\nMichael S. Smith\nChairman & CEO\nFreeport LNG Development, L.P.\n333 Clay Street, Suite 5050\nHouston, Texas 77002\nCPF 4-2020-1001M\nDear Mr. Smith:\nFrom June 25 through September 26, 2019, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\ninspected Freeport LNG Development, L.P.’s (FLNG) procedures for it’s natural gas transmission\npipeline system located in Freeport, Texas. As a result of the inspection, Freeport LNG\nDevelopment, L.P.’s (FLNG) was issued a Notice of Amendment on January 28, 2020.\nFLNG’s amended procedures were received by PHMSA on February 10, 2020. My staff reviewed\nthe amended procedures and it appears that the inadequacies outlined in this Notice of Amendment\nhave been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n420201001M_Notice of Amendment_01272020_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJanuary 27, 2020\nMr. Michael S. Smith\nChairman & CEO\nFreeport LNG Development, L.P.\n333 Clay Street, Suite 5050\nHouston, Texas 77002\nCPF 4-2020-1001M\nDear Mr. Smith:\nFrom June 25 through September 26, 2019, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\ninspected Freeport LNG Development, L.P.’s (FLNG) procedures for the its natural gas\ntransmission pipeline system located in Freeport, Texas.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nFLNG’s plans or procedures, as described below:\n1. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(b) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following, if applicable, to provide safety\nduring maintenance and operations.\n(1) Operating, maintaining, and repairing the pipeline in accordance with each of the\nrequirements of this subpart and subpart M of this part.\na. FLNG failed to establish written procedures for the abandonment or deactivation of\nfacilities in accordance with § 192.727(g) to require the filing of an abandonment report\nto the National Pipeline Mapping System (NPMS).\n\n\n\nPHMSA reviewed FLNG’s Gas Pipeline Operations and Maintenance Manual\n(FLNG-GOM-100) and found it did not provide a provision for the notification of\nabandonment in the event FLNG chose to abandon its pipeline facilities that cross the\nintracoastal waterway currently used for commercial navigation.\nFLNG must amend its written procedures, FLNG-GOM-100, to require the filing as\nrequired by § 192.727(g).\nb. FLNG failed to establish written procedures for pressure limiting and regulating\nstations in accordance with § 192.743.\nPHMSA reviewed FLNG’s Gas Operations Manual (FLNG-GOM-100) and found it\ncontains references to Gas Distribution systems - 49 CFR §§192.621/623; See sections\n2.6.1 and 2.6.3/2.6.4. FLNG does not operate gas distribution facilities, but rather gas\ntransmission facilities.\nFLNG must amend its written procedures to reflect pressure limiting and regulating\nstations for the transmission facilities it operates.\n2. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(c) Abnormal operation. For transmission lines, the manual required by paragraph (a)\nof this section must include procedures for the following to provide safety when\noperating design limits have been exceeded:\n(4) Periodically reviewing the response of operator personnel to determine the\neffectiveness of the procedures controlling abnormal operation and taking corrective\naction where deficiencies are found.\nFLNG failed to establish written procedures for periodically reviewing the response of\noperator personnel to determine the effectiveness of the procedures controlling abnormal\noperation and taking corrective action where deficiencies are found.\nPHMSA reviewed FLNG’s Gas Pipeline Operations and Maintenance Manual (FLNG-\nGOM-100) and noted that the Manual (GOM) does not include procedures for the periodic\nreview.\nFLNG procedures must be amended in accordance with § 192.605(c)(4) and it must include\na provision for documentation of the review.\n3. § 192.615 Emergency plans.\n(b) Each operator shall:\n(2) Train the appropriate operating personnel to assure that they are knowledgeable\n2\n\n\n\nthe emergency procedures and verify that the training is effective.\nFLNG’s written Emergency Plan does not include training for the appropriate operating\npersonnel to ensure that they are knowledgeable of the emergency procedures as required\nby § 192.615(b)(2).\nDuring the inspection, PHMSA reviewed the FLNG-GOM-100 (Gas Pipeline Operations\nand Maintenance Manual). It was noted that Section 10-Emergency Plan does not contain\na reference or procedures pertaining to the training of appropriate operating personnel.\nFLNG must amend its Emergency Plan to include a training program in the Emergency\nPlan for the appropriate operating personnel of the 42-inch natural gas transmission\npipeline and must include a provision for documentation of the training.\n4. § 192.615 Emergency plans.\n(b) Each operator shall:\n(3) Review employee activities to determine whether the procedures were effectively\nfollowed in each emergency.\nFLNG’s written Emergency Plan does not include a review of employee activities to\ndetermine whether the procedures were effectively followed in each emergency as required\nby § 192.615(b)(3).\nDuring the inspection, PHMSA reviewed the FLNG-GOM-100 (Gas Pipeline Operations\nand Maintenance Manual). It was noted that Section 10-Emergency Plan does not contain\nprocedures for the review of appropriate operating personnel activities to determine\nwhether the procedures were effectively followed in each emergency.\nFLNG must amend the Emergency Plan to include a review of employee activities to\ndetermine that procedures were effectively followed in each emergency and must include\na provision for documentation of that review.\n5. § 192.805 Qualification program.\nEach operator shall have and follow a written qualification program. The program\nshall include provisions to:\n(i) After December 16, 2004, notify the Administrator or a state agency the\nparticipating under 49 U.S.C. Chapter 601 if the operator significantly modifies\nprogram after the administrator or state agency has verified that it complies\nwith this section. Notifications to PHMSA may be submitted by electronic mail\nto InformationResourcesManager@dot.gov, or by mail to ATTN: Information\n3\n\n\n\nResources Manager DOT/PHMSA/OPS, East Building, 2nd Floor, E22-321, New\nJersey Avenue SE., Washington, DC 20590.\nFLNG’s Operator Qualification (OQ) program was inadequate because it failed to define\n“significant” and provide PHMSA’s accurate email or mailing address.\nDuring the inspection, PHMSA reviewed the “revised” FLNG OQ Program. FLNG does\nnot define “significant” changes that require the operator to make notifications to PHMSA\nto comply with the OQ regulations, nor does it have the correct PHMSA email and/or\nmailing address to submit significant change notifications.\nFLNG must define significant as it applies to OQ Program modifications in its Operator\nQualification Plan and update PHMSA’s email and mailing address.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in Compliance\nProceedings. Please refer to this document and note the response options. Be advised that all\nmaterial you submit in response to this enforcement action is subject to being made publicly\navailable. If you believe that any portion of your responsive material qualifies for confidential\ntreatment under 5 U.S.C. 552(b), along with the complete original document you must provide a\nsecond copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice\nand authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice\nwithout further notice to you and to issue an Order Directing Amendment. If your plans or\nprocedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans\nor procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this\nNotice, we propose that you submit your amended procedures to my office within 30 days of\nreceipt of this Notice. This period may be extended by written request for good cause. Once the\ninadequacies identified herein have been addressed in your amended procedures, this enforcement\naction will be closed.\n4\n\n\n\nIt is requested (not mandated) that FREEPORT LNG DEVELOPMENT, L.P. (FLNG) maintain\ndocumentation of the safety improvement costs associated with fulfilling this Notice of\nAmendment (preparation/revision of plans, procedures) and submit the total to Mary L. McDaniel,\nP.E. Director, Southwest Region, Pipeline and Hazardous Materials Safety Administration. In\ncorrespondence concerning this matter, please refer to CPF 4-2020-1001M and, for each\ndocument you 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\ncc: Mark Mallett, Vice President of Operations & Engineering, Freeport LNG Development, L.P.,\n333 Clay Street, Suite 5050, Houston, Texas 77002\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n5","truncated":false,"body_characters":11414}