{"operation":"document","citation":"CPF 420203004","title":"SABINE PASS LNG, L.P. (Cheniere) — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-10-27","effective_on":null,"summary":"CLOSED notice of probable violation citing 193.2605, 193.2707(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420203004.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420203004.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420203004","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420203004","body":"Notice of Probable Violation involving SABINE PASS LNG, L.P. (Cheniere). PHMSA's enforcement data identifies the cited regulations as 193.2605,  193.2707(a). The case was opened on 2020-10-27 and is reported as closed as of 2021-01-08. Proposed civil penalty: $80,100. Assessed civil penalty: $80,100. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420203004_ NOPV PCP_10272020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420203004/420203004_%20NOPV%20PCP_10272020.pdf\n\n420203004_ NOPV PCP_10272020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420203004/420203004_%20NOPV%20PCP_10272020_text.pdf\n\n420203004_Final Order_01082021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420203004/420203004_Final%20Order_01082021.pdf\n\n420203004_Final Order_01082021_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420203004/420203004_Final%20Order_01082021_text.pdf\n\n420203004_Operator Response to Notice_11252020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420203004/420203004_Operator%20Response%20to%20Notice_11252020.pdf\n\n420203004_Final Order_01082021_text.pdf\n\nJanuary 8, 2021\nVIA ELECTRONIC MAIL TO: jack.fusco@cheniere.com\nMr. Jack A. Fusco\nPresident and Chief Executive Officer\nCheniere Energy, Inc.\n700 Milam Street, Suite 1900\nHouston, Texas 77002\nRe: CPF No. 4-2020-3004\nDear Mr. Fusco:\nEnclosed please find the Final Order issued in the above-referenced case. It makes one finding\nof violation and acknowledges that the civil penalty amount of $80,100 has been paid in full.\nTherefore, this case is now closed. Service of the Final Order by electronic mail is effective\nupon the date of transmission, as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures (Final Order and NOPV)\ncc: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. Aaron Stephenson, President, Sabine Pass Liquefaction, LLC\naaron.stephenson@cheniere.com\nMr. Maas Hinz, Vice President and General Manager, Sabine Pass Liquefaction, LLC\nmaas.hinz@cheniere.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 )\nCheniere Energy, Inc., ) CPF No. 4-2020-3004\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn October 27, 2020, pursuant to 49 C.F.R. § 190.207, the Director, Southwest Region, Office\nof Pipeline Safety (OPS), issued a Notice of Probable Violation (Notice) to Cheniere Energy,\nInc. (Respondent), arising out of an incident at the company’s Sabine Pass LNG facility in\nCameron Parish, Louisiana, on April 26, 2018. The Notice proposed finding that Respondent\nhad violated pipeline safety regulations in 49 C.F.R. Part 193 and proposed a civil penalty of\n$80,100. Respondent did not contest the allegations of violation and paid the proposed civil\npenalty on November 30, 2020.\nBased upon a review of all of the evidence, pursuant to § 190.213, I find that Respondent\nviolated the pipeline safety regulation listed below, as more fully described in the enclosed\nNotice, which is incorporated by reference:\n49 C.F.R. § 193.2605 (Item 1) ─ Respondent failed to follow its own written\nprocedures for performing maintenance activities for a perlite refill operation on\nTank S-102 at its Sabine Pass LNG facility, resulting in an ignition of venting\nvapors that damaged control and sensor cables.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent. In accordance with 49 C.F.R. § 190.223, Respondent is assessed the\nproposed civil penalty amount of $80,100, which Respondent has already paid in full.\nWARNING ITEM\nWith respect to Item 2, the Notice alleged a probable violation of 49 C.F.R. § 193.2707, but did\nnot propose a civil penalty or compliance order. Therefore, this is considered to be a warning\nitem. The Respondent provided additional information regarding this item for PHMSA’s\nconsideration. If OPS finds a violation of this provision in a subsequent inspection, Respondent\nmay be subject to future enforcement action.\n\n\n\nCPF No. 4-2020-3004\nPage 2\nThe terms and conditions of this order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nJanuary 8, 2021\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n420203004_ NOPV PCP_10272020_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nand\nPROPOSED CIVIL PENALTY\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nOctober 27, 2020\nJack A. Fusco\nPresident and CEO\nCheniere Energy Inc.\n700 Milam Street, Suite 1900\nHouston, Texas 77002\nCPF 4-2020-3004\nDear Mr. Fusco:\nFollowing an incident that occurred on April 26, 2018, at your Sabine Pass LNG (Sabine) facility\nlocated in Cameron Parrish, Louisiana, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.) initiated an investigation. Specifically, on April 26, 2018, Cheniere\nnotified PHMSA that while in the process of placing perlite into the annular space of Tank S-102\nat the SLNG facility, a fire ignited on the vent stack of the tank. The vent stack fire burned for\napproximately 2 hours. Visible damages occurred to the cables, power outlets, and lights on the\ntank. PHMSA responded to the site to perform its investigation.\nAs a result of the investigation, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. §193.2605 Maintenance procedures.\n(a) Each operator shall determine and perform, consistent with generally accepted\nengineering practice, the periodic inspections or tests needed to meet the applicable\nrequirements of this subpart and to verify that components meet the maintenance\nstandards prescribed by this subpart.\n\n\n\n2\n(b) Each operator shall follow one or more manuals of written procedures for the\nmaintenance of each component, including any required corrosion control. The\nprocedures must include:\n(1) The details of the inspections or tests determined under paragraph (a) of\nthis section and their frequency of performance; and\n(2) A description of other actions necessary to maintain the LNG plant\naccording to the requirements of this subpart.\n(c) Each operator shall include in the manual required by paragraph (b) of this\nsection instructions enabling personnel who perform operation and maintenance\nactivities to recognize conditions that potentially may be safety-related conditions that\nare subject to the reporting requirements of §191.23 of this subchapter.\nSabine failed to follow its written procedures for performing maintenance activities under\n§193.2605 for a perlite refill operation on Tank S-102 at the plant. On April 26, 2018,\nSabine initiated maintenance work to add perlite to the annular space of Tank S-102. The\nfilling operation performed by Sabine pursuant to its written procedures required that the\nvent caps on the tank roof be removed and that perlite be blown into the annular space\nthrough the openings. Specifically, sections 6.2 and 6.3 of Sabine’s written\nprocedure/work plan, titled Perlite Top Off, require the installation of a perlite fill line\nadapter with block valve (i.e. the actual nozzle where the personnel filled the tank with\nperlite) followed by the installation of a block valve on the vent stack.\nSabine’s internal investigation of the incident revealed that its personnel failed to install\nthe block valve on the vent stack of Tank S-101 as required by its procedures during the\nperlite filling operation. The failure to install the block valve resulted in the ignition of the\nventing vapors resulting in a fire that damaged control and sensor cables in a cable tray on\ntop of Tank S-102. Sabine’s failure to install the block valve on the vent stack did not\nprovide a means to stop the flow of vapor from the tank, therefore, allowing the fire to burn\non top of the tank for approximately two hours before Sabine could extinguish the fire and\ncontrol the venting vapors.\n2. §193.2707 Operations and maintenance.\n(a) Each operator shall utilize for operation or maintenance of components only those\npersonnel who have demonstrated their capability to perform their assigned functions\nby –\n(1) Successful completion of the training required by §§193.2713 and 193.2717;\nand\n(2) Experience related to the assigned operation or maintenance function; and\n(3) Acceptable performance on a proficiency test relevant to the assigned\nfunction.\n\n\n\n3\nSabine failed to utilize personnel who had demonstrated their capability to perform their\nassigned functions per §193.2707 for maintenance activities performed at the SLNG\nfacility. Refinery Terminal Fire Company (RTFC) personnel installed a valve on the\nperlite fill nozzle that supported the vent stack to control the release of natural gas, which\nescaped from the annular space during the maintenance activities on Tank S-102 that\noccurred on April 26, 2018. The RTFC, however, was not trained to perform the function\nof the valve installation. It is also not clear if Sabine maintenance personnel, who have\ndemonstrated capability to perform this function, accompanied and directed the installation\nof the valve to control the release of natural gas.\nA review of training records from the RTFC demonstrated that the RTFC personnel had\nnot received training for the installation valves and that the RTFC was in the vicinity during\nthe perlite refilling maintenance activity on Tank S-102 only for high angle rescue. The\nRTFC personnel had not been trained to perform the valve installation or demonstrated\ntheir capability to perform such a function as required by §193.2707.\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related\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. We have reviewed the circumstances and supporting\ndocumentation involved for the above probable violations and has recommended that you be\npreliminarily assessed a civil penalty of $80,100 as follows:\nItem number PENALTY\n1 $80,100\n\n\n\n4\nWarning Items\nWith respect to item 2, we have reviewed the circumstances and supporting documents involved\nin this case and have decided not to conduct additional enforcement action or penalty assessment\nproceedings at this time. We advise you to promptly correct this item. Failure to do so may\nresult in additional enforcement action.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nEnforcement 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 4-2020-3004 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: Response Options for Pipeline Operators in Enforcement Proceedings\nCc: Paul Nielson, Manager, Regulatory Compliance, Cheniere LNG O&M Services, LLC,\npaul.nielson@cheniere.com\nAndrew Kohout, Director, Division of LNG Facility Reviews and Inspections, FERC,\nandrew.kohout@ferc.gov","truncated":false,"body_characters":14019}