{"operation":"document","citation":"CPF 42021042NOPSO","title":"HAWAII GAS — Safety Order","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-05-28","effective_on":null,"summary":"CLOSED safety order.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021042nopso.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021042nopso.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021042nopso","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42021042NOPSO","body":"Safety Order involving HAWAII GAS. The dataset does not identify a cited regulation for this case. The case was opened on 2021-05-28 and is reported as closed as of 2023-10-18. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42021042NOPSO_Closure Letter_10182023_(21-209129).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021042NOPSO/42021042NOPSO_Closure%20Letter_10182023_(21-209129).pdf\n\n42021042NOPSO_Closure Letter_10182023_(21-209129)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021042NOPSO/42021042NOPSO_Closure%20Letter_10182023_(21-209129)_text.pdf\n\n42021042NOPSO_Consent Agreement and Order_08232021_(21-209129).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021042NOPSO/42021042NOPSO_Consent%20Agreement%20and%20Order_08232021_(21-209129).pdf\n\n42021042NOPSO_Consent Agreement and Order_08232021_(21-209129)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021042NOPSO/42021042NOPSO_Consent%20Agreement%20and%20Order_08232021_(21-209129)_text.pdf\n\n42021042NOPSO_Notice of Proposed Safety Order_05282021_(21-209129).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021042NOPSO/42021042NOPSO_Notice%20of%20Proposed%20Safety%20Order_05282021_(21-209129).pdf\n\n42021042NOPSO_Notice of Proposed Safety Order_05282021_(21-209129)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021042NOPSO/42021042NOPSO_Notice%20of%20Proposed%20Safety%20Order_05282021_(21-209129)_text.pdf\n\n42021042NOPSO_Closure Letter_10182023_(21-209129)_text.pdf\n\nVIA ELECTRONIC MAIL TO: amoy@hawaiigas.com\nOctober 18, 2023\nAlicia Moy\nPresident & Chief Executive Officer\nHawai’i Gas\n745 Fort Street Mall, Ste. 1800\nHonolulu, Hawai’i 96813\nCPF 4-2021-042-NOPSO\nDear Ms. Moy:\nOn May 28, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\na Notice of Proposed Safety Order (Notice) to Hawai’i Gas. The Notice alleged that conditions\nexisted on Hawaii Gas’ LNG facility that posed a pipeline integrity risk to public safety, property,\nor the environment, and proposed that Hawaii Gas take certain corrective measures to remedy the\nalleged conditions to ensure that the public, property, and the environment are protected from the\npotential risk.\nOn August 23, 2021, PHMSA and Hawai’i Gas entered into a Consent Agreement and Order\n(Agreement) to resolve the issues in the Notice. On May 23, 2023, Hawai’i Gas notified PHMSA\nthat all requirements in the Agreement were complete.\nPHMSA reviewed the responses provided to demonstrate compliance with the Agreement and\ndetermined that Hawai’i Gas has completed the required corrective measures in the Agreement.\nThis letter is to inform you that no further actions in this case are required, the Agreement is\nterminated, and this case is now closed. Thank you for your cooperation.\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\n\n\n\ncc: Linda Daugherty, Deputy Associate Administrator for Field Operations, Office of\nPipeline Safety, PHMSA\nKeith Yamamoto, Manager, Engineering, Hawaii Gas, kkyamamo@hawaiigas.com\nKevin Nishimura, Vice President, Operations, Hawaii Gas, knishimu@hawaiigas.com\nBryn Karaus, Van Ness Feldman, Counsel for Hawaii Gas, bsk@vnf.com\n\n42021042NOPSO_Consent Agreement and Order_08232021_(21-209129)_text.pdf\n\nAugust 23, 2021\nVIA ELECTRONIC MAIL TO: amoy@hawaiigas.com\nAlicia Moy\nPresident & Chief Executive Officer\nHawaii Gas\n745 Fort Street Mall, Ste. 1800\nHonolulu, Hawaii 96813\nCPF No. CPF 4-2021-042-NOPSO\nDear Ms. Moy:\nEnclosed please find a Consent Order incorporating the terms of the fully executed Consent\nAgreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and\nHawaii Gas, which was executed on August 19, 2021. Service of the Consent Order and Consent\nAgreement by e-mail is deemed effective upon the date of transmission, or as otherwise provided\nunder 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures: Consent Order and Consent Agreement\ncc: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMs. Linda Daugherty, Deputy Associate Administrator for Field Operations, Office of\nPipeline Safety, PHMSA\nMr. Edwin Sawa, General Manager, Hawaii Gas, esawa@hawaiigas.com\nMr. Kevin Nishimura, Vice President, Operations, Hawaii Gas, knishimu@hawaiigas.com\nMs. Bryn Karaus, Van Ness Feldman, Counsel for Hawaii Gas,\nbsk@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\n_______________________________________\nIn the Matter of )\nThe Gas Company, LLC, ) CPF No. 4-2021-042-NOPSO\ndba Hawaii Gas, )\nRespondent. )\n)\n)\n)\n)\nCONSENT ORDER\nBy letter dated May 28, 2021, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety, issued a Notice of Proposed Safety Order (Notice) to Hawaii\nGas.1\nIn accordance with 49 C.F.R. Part 193, the Notice alleged that conditions exist on Respondent’s\nliquefied natural gas facility located in Oahu, Hawaii, that pose a pipeline integrity risk to public\nsafety, property, or the environment. The Notice also proposed that Respondent take certain\ncorrective measures to remedy the alleged conditions and ensure that the public, property, and the\nenvironment are protected from the potential risk.\nIn response to the Notice, Respondent requested an informal consultation, whereupon the parties\nengaged in good-faith settlement discussions that have resulted in the Consent Agreement attached\nto this Consent Order that settles all of the allegations in the Notice.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. The Respondent is hereby ordered to comply with the terms of the Consent\nAgreement, effective immediately.\nPursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the\nassessment of civil penalties as set forth in 49 C.F.R. § 190.223, or in referral to the Attorney\nGeneral for appropriate relief in a district court of the United States.\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nAugust 23, 2021\n________________________ ________________________\nAlan K. Mayberry Date\nAssociate Administrator\nfor Pipeline Safety, PHMSA\n1 Hawaii Gas is the trade name of The Gas Company, LLC.\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n_______________________________________\n)\nIn the Matter of )\n)\nThe Gas Company, LLC, ) CPF No. 4-2021-042-NOPSO\ndba Hawaii Gas, )\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nOn May 28, 2021, pursuant to 49 C.F.R. § 190.239, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety, Southwest Region, issued a Notice of\nProposed Safety Order (Notice) to Hawaii Gas2 (Hawaii Gas or Respondent). The Notice was\nissued after PHMSA initiated an information and record review and conducted an on-site\ninspection to determine compliance with 49 C.F.R. Part 193 at Hawaii Gas’ liquefied natural gas\n(LNG) facility located in Oahu, Hawaii. The on-site inspection was conducted from April 12\nthrough April 16, 2021, meanwhile the information review remains ongoing. While the facility\nwas not in operation at the time of the inspection and is currently not in operation, Hawaii Gas\nremains obligated to comply with 49 C.F.R. Part 193 while the facility remains in service. As a\nresult of this review and inspection, OPS issued the Notice, which alleged that conditions exist on\nRespondent’s LNG facility that pose a pipeline integrity risk to public safety, property, or the\nenvironment, and proposed that Respondent take certain corrective measures to remedy the alleged\nconditions to ensure that the public, property, and the environment are protected from the potential\nrisk.\nOn June 23, 2021, Hawaii Gas responded to the Notice by timely submitting a written response\nand a request for an informal consultation. An informal consultation was held virtually on July\n19, 2021.\nAs a result of the informal consultation, PHMSA and Respondent (the Parties) agreed that\nsettlement of this proceeding will avoid further administrative proceedings or litigation of the\nNotice and that entry into this Consent Agreement (Agreement) is the most appropriate means of\nresolving the issues raised in the Notice and is generally in the public interest. Therefore, pursuant\nto 49 C.F.R. Part 190, without adjudication of any issue of fact or law, and upon consent and\nagreement of the Parties, PHMSA and Hawaii Gas agree as follows:\n2 Hawaii Gas is the trade name of The Gas Company, LLC.\n\n\n\nCPF No. 4-2021-042-NOPSO\nPage 2\nI. General Provisions\n1. Respondent acknowledges that as the operator of the Hawaii Gas LNG facility,\nRespondent and its LNG facility are subject to the jurisdiction of the Federal pipeline safety laws,\n49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder. For\npurposes of this Agreement, Respondent acknowledges that it received proper notice of PHMSA’s\naction in this proceeding and that the Notice states claims upon which relief may be granted\npursuant to 49 U.S.C. § 60101, et seq., and the regulations and orders issued thereunder.\n2. Respondent agrees, for purposes of this Agreement, to address the integrity risks\nidentified in the Notice by completing the actions specified in Section II of this agreement\n(Corrective Measures) and to abide by the terms of this Agreement. This Agreement does not\nconstitute a finding of violation of any Federal law or regulation and may not be used in any civil\nor administrative proceeding of any kind as evidence or proof of any fact, fault or liability, or as\nevidence of the violation of any law, rule, regulation or requirement, except in a proceeding to\nenforce the provisions of this Agreement.\n3. After Respondent returns this signed Agreement to PHMSA, the Agency’s\nrepresentative will present it to the Associate Administrator for Pipeline Safety, recommending that\nthe Associate Administrator adopt the terms of this Agreement by issuing an administrative order\n(Consent Order) incorporating the terms of this Agreement. The terms of this Agreement constitute\nan offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate\nAdministrator will issue a Consent Order incorporating the terms of this Agreement.\n4. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Agreement, including\nall rights to administrative or judicial hearings or appeals, except as set forth herein.\n5. This Agreement will apply to and be binding upon PHMSA, and upon Respondent,\nits officers, directors, and employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all of Respondent’s officers, employees, and agents\nwhose duties might reasonably include compliance with this Agreement.\n6. For all transfers of ownership or operating responsibility of Respondent’s Oahu,\nHawaii LNG facility, Respondent will provide a copy of this Agreement to the prospective\ntransferee at least 30 days prior to such transfer and provide written notice of the transfer within\n30 days to the PHMSA Southwest Region Director (Director) who issued the Notice.\n7. This Agreement constitutes the final, complete and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement. The\nParties acknowledge that there are no representations, agreements or understandings relating to\nsettlement other than those expressly contained in this Agreement, except that the terms of this\nAgreement may be construed by reference to the Notice.\n\n\n\nCPF No. 4-2021-042-NOPSO\nPage 3\n8. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et\nseq., and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's\nright of access, entry, inspection, and information gathering or PHMSA’s authority to bring\nenforcement actions against Respondent pursuant to the Federal pipeline safety laws, the\nregulations and orders issued thereunder, or any other provision of Federal or State law.\n9. This Agreement does not waive or modify any Federal, State, or local laws or\nregulations that are applicable to Respondent’s pipeline systems. This Agreement is not a permit,\nor a modification of any permit, under any Federal, State, or local laws or regulations. Respondent\nremains responsible for achieving and maintaining compliance with all applicable Federal, State,\nand local laws, regulations and permits.\n10. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not party to this Agreement. The U.S. Department of Transportation is not liable for any\ninjuries or damages to persons or property arising from acts or omissions of Respondent or its\nofficers, employees, or agents carrying out the work required by this Agreement. Respondent\nagrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents,\nand representatives from any and all causes of action arising from any acts or omissions of\nRespondent or its contractors in carrying out any work required by this Agreement.\nII. Corrective Measures\n11. Measures set forth below.\nUpon issuance of the Consent Order, Respondent agrees to perform the Corrective\n12. Qualified Independent Third Party. Within 30 days of the Effective Date of the\nConsent Order, Respondent shall select an Independent Third Party and submit its selection along\nwith its associated qualifications to demonstrate its knowledge and prior experience of\nPHMSA-regulated LNG facilities to the Director for approval.\n13. Siting Analysis. Within 90 days of the date of the Director’s approval of the\nIndependent Third Party, Respondent shall submit a Siting Analysis of the LNG facility, performed\nby the approved independent third party, for the Director’s approval. The Siting Analysis shall\naddress all siting requirements in accordance with Part 193, Subpart B and NFPA 59A-2001 as\nincorporated by reference in 49 C.F.R. § 193.2051.\n14. Gas Dispersion Study. Within 90 days of the date of the Director’s approval of the\nIndependent Third Party, and concurrent with the Siting Analysis, Respondent shall submit a Gas\nDispersion Study for the vapor vent stack(s) located within the LNG facility, performed by the\napproved independent third party, for the Director’s approval. The Gas Dispersion Study will be\nin accordance with NFPA 59A-2001, Section 3.4.5, as incorporated by reference in 49 C.F.R. §\n193.2401.\n\n\n\nCPF No. 4-2021-042-NOPSO\nPage 4\n15. Fire Protection Evaluation. Within 60 days after completing the Siting Analysis,\nRespondent shall submit a Fire Protection Evaluation, performed by the approved Independent\nThird Party, for the Director’s approval. The fire protection evaluation must address all\nrequirements in 49 C.F.R. § 193.2801.\n16. Operations, Maintenance, and Training Review. Within 90 days of the Effective\nDate of the Consent Order, Respondent shall review and evaluate the current operations and\nmaintenance procedures and training requirements associated with personnel responsible for\noperations and maintenance within the LNG facility, with such review and evaluation being\nconducted by the approved Independent Third Party. The review must also ensure that roles and\nresponsibilities are clearly defined and include recommendations for implementing the procedures.\nAll revisions to the procedures must be submitted to the Director for review and approval.\nFollowing the Director’s approval, Respondent must implement the revised procedures and\nmandatory personnel training to accompany the revised procedures.\n17. Remedial Work Plan. Within 90 days after completing the corrective measures in\nparagraphs 13, 14, 15 and 16, Respondent shall prepare and submit a Remedial Work Plan (RWP)\nto the Director for review and approval. The RWP must include actions to remedy any issues of\nnon-compliance identified by the Siting Analysis, Fire Protection Evaluation, Gas Dispersion\nStudy, and the Operations, Maintenance, and Training Review, as well as any other identified\nsafety risks determined by the aforementioned assessments.\na. The Director may incrementally approve parts of the RWP without approving the\nentire RWP.\nb. Once approved by the Director, the approved RWP increments, parts or entire RWP\nis considered incorporated by reference into this Agreement.\nc. The RWP must specify in detail the measures that Hawaii Gas will use to remedy\nany non-compliance identified by the aforementioned assessments.\nd. The RWP must include the following steps:\ni. Integrate the results of the Siting Review, Fire Protection Evaluation, Gas\nDispersion Study, the Operations, Maintenance, and Training Review, and\nany preexisting operational data, which includes, but is not limited to,\nconstruction, operations, maintenance, testing, repairs, and any third-party\nconsultation information.\nii. Describe all remedial measures Hawaii Gas will use to prioritize, evaluate,\nrepair, modify, or construct to comply with requirements in 49 C.F.R. Part\n193 and NFPA 59A-2001.\niii. Include a proposed schedule for completion of the RWP and update as\nrequired.\n\n\n\niv. v. e. CPF No. 4-2021-042-NOPSO\nPage 5\nSubmit any plan revisions to the Director for prior approval. The Director\nmay approve plan revisions incrementally.\nUpdate all facility drawings and records to reflect work completed in the\nRWP.\nImplement the RWP as it is approved by the Director, including any revisions.\n18. Reporting. From the Effective Date of the Consent Order, Respondent shall\npromptly report to the Director any abnormal operating conditions of components within the\nfacility. Additionally, Respondent shall submit quarterly reports to the Director that include\ninformation regarding the progress on Siting Analysis, Fire Protection Evaluation, Gas Dispersion\nStudy, Maintenance, Operation, and Training Review, and the RWP required under this Consent\nOrder. The first quarterly report will be due on October 15, 2021, which will cover the period\nfrom the Effective Date of the Consent Order to September 30, 2021.\nSubsequent Quarterly Reports are due 15 days after the end of the applicable quarter.\n19. Extensions of Time. The Director may grant an extension of time for compliance\nwith any of the terms of the Agreement upon a written request timely submitted demonstrating\ngood cause for an extension. The Director shall respond in writing to any such request.\n20. Appeals. Respondent may appeal any decision of the Director to the Associate\nAdministrator for Pipeline Safety. Decisions of the Associate Administrator will be final.\nIII. Review and Approval Process\n21. With respect to any submission under Section II (Corrective Measures) of this\nAgreement that requires the approval of the Director, the Director may: (a) approve, in whole or\nin part, the submission, (b) approve the submission on specified, reasonable conditions, (c)\ndisapprove, in whole or in part, the submission, or (d) any combination of the foregoing. If the\nDirector approves, approves in part, or approves with conditions, Respondent will take all action\nas approved by the Director, subject to Respondent’s right to invoke the dispute resolution\nprocedures with respect to any conditions the Director identifies. If the Director disapproves all\nor any portion of the submission, the Director will provide Respondent with a written notice of the\ndeficiencies. Respondent will correct all deficiencies within the time specified by the Director and\nresubmit it for approval.\nIV. Dispute Resolution\n22. The Director and Respondent will informally attempt to resolve any disputes arising\nunder this Agreement. If Respondent and the Director are unable to informally resolve the dispute\nwithin 15 days of submittal of Respondent’s invoking dispute resolution, Respondent may request\nin writing, within 10 days thereafter, a written determination resolving the dispute from the\nAssociate Administrator for Pipeline Safety providing all information that Respondent believes is\nrelevant to the dispute. If the request is submitted as provided herein, the Associate Administrator\nwill issue a final determination in writing. The existence of a dispute and PHMSA’s consideration\n\n\n\nCPF No. 4-2021-042-NOPSO\nPage 6\nof matters placed in dispute will not excuse, toll, or suspend any term or timeframe for completion\nof any work to be performed under this Agreement during pendency of the dispute resolution\nprocess except as agreed by the Director or the Associate Administrator in writing.\nV. Enforcement\n23. This Agreement, as adopted by the Consent Order, is subject to all enforcement\nauthorities available to the PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190. All\nwork plans and associated schedules set forth or referenced in Section II will be automatically\nincorporated into this Agreement and are enforceable in the same manner.\nVI. Recordkeeping and Information Disclosure\n24. Unless otherwise required in this Agreement, Respondent agrees to maintain\nrecords demonstrating compliance with all requirements of this Agreement for a period of at least\nfive years following completion of all work to be performed. For any reports, plans, or other\ndeliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent may\nassert a claim of business confidentiality or other protections applicable to the release of\ninformation by PHMSA, covering part or all of the information required to be submitted to\nPHMSA pursuant to this Agreement in accordance with 49 C.F.R. Part 7. Respondent must mark\nthe claim of confidentiality in writing on each page, and include a statement specifying the grounds\nfor each claim of confidentially. PHMSA determines release of any information submitted\npursuant to this Agreement in accordance with 49 C.F.R. Part 7, the Freedom of Information Act,\n5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations and Executive Orders.\nVII. Effective Date\n25. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator incorporating the terms of this Agreement. Unless\nspecified to the contrary, all deadlines for actions required by this Agreement run from the\nEffective Date of the Consent Order.\nVIII. Modification\n26. The terms of this Agreement may be modified by mutual agreement of the Parties.\nSuch modifications must be in writing and signed by both parties.\nIX. Termination\n27. This Agreement will remain in effect until the Corrective Measures in Section II\nare satisfied, as determined by the Director. Respondent may request written confirmation from\nPHMSA when this Consent Agreement is terminated and the Director will provide such\nconfirmation. Nothing in this Agreement prevents Respondent from completing any of the\nobligations earlier than the deadlines provided for in this Agreement.\n\n\n\nCPF No. 4-2021-042-NOPSO\nPage 7\nX. Ratification\n28. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Agreement and to execute and legally bind such party\nto this document.\n29. For HAWAII GAS:\nThe Parties hereby agree to all conditions and terms of this Agreement.\n___________________________________\nKevin Nishimura\nVice President, Operations\nHawai’i Gas\n________________________\nDate\nFor PHMSA:\n___________________________________\nMary L. McDaniel, P.E.\nDirector, Southwest Region, OPS\n________________________\nDate\n\n42021042NOPSO_Notice of Proposed Safety Order_05282021_(21-209129)_text.pdf\n\nVIA E-MAIL:\nMay 28, 2021\nAlicia Moy\nPresident & CEO\nHawaii Gas\n745 Fort Street Mall, Ste. 1800\nHonolulu, Hawaii 96813\nCPF 4-2021-042-NOPSO\nDear Ms. Moy:\nEnclosed is a Notice of Proposed Safety Order (Notice) issued by the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) in the above-referenced case. The Notice proposes that\nHawaii Gas take certain measures with respect to its liquefied natural facility located in Oahu,\nHawaii. The options for responding are set forth in the Notice. Your receipt of the Notice\nconstitutes service of that document under 49 C.F.R. § 190.5.\nWe look forward to a successful resolution to ensure pipeline safety. Please direct any questions\non this matter to me at 713-272-2847.\nThank you for your cooperation in this matter.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Notice of Proposed Safety Order\nCopy of 49 C.F.R. § 190.239\ncc: Ms. Linda Daugherty, Deputy Associate Administrator for Field Operations, PHMSA\nMr. Edwin Sawa, General Manager, Hawaii Gas, esawa@hawaiigas.com\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nSOUTHWEST REGION\nHOUSTON, TX 77074\n_________________________________________ )\nIn the Matter of )\nHawaii Gas, ) CPF No. 4-2021-042-NOPSO\n)\n)\nRespondent. )\n_________________________________________ )\nNOTICE OF PROPOSED SAFETY ORDER\nBackground and Purpose:\nPursuant to Chapter 601 of Title 49, United States Code, the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), has initiated an information\nand record review and conducted on-site inspection (April 12, 2021 through April 16, 2021) to\ndetermine compliance with 49 Code of Federal Regulations (C.F.R.) Part 193 at Hawaii Gas’\n(Hawaii Gas or Respondent) liquefied natural gas (LNG) facility located in Oahu, Hawaii.\nAs a result of the review and on-site inspection, it appears that a condition or conditions exist on\nHawaii Gas’s LNG facilities that pose an integrity risk to public safety, property, or the\nenvironment. Accordingly, PHMSA OPS issues this Notice of Proposed Safety Order (Notice),\npursuant to 49 U.S.C. § 60117(l), notifying you of the preliminary findings of the inspection and\nproposing that Hawaii Gas take measures to ensure that the public, property, and the environment\nare protected from the potential risk.\nPreliminary Findings:\n The Hawaii Gas LNG facility, located in Oahu, Hawaii, is designed to vaporize LNG that\nhas been delivered to the facility in International Organization for Standardization (ISO)\ncontainers via container ship from California. Once a container ship arrives to Hawaii,\nthe ISO containers, which act as the transportation vessel for the fuel, are delivered to the\nLNG facility via tractor-trailers. LNG is then pumped from the ISO containers to a heat\nexchanging system which vaporizes the LNG.\n The ISO containers, as designed, have a water capacity of 45,000 liters (or approximately\n11,880 gallons); however, the tanks are loaded in California with approximately 9,000\ngallons of LNG per container. The LNG plant is designed for parking two trailer-mounted\ncontainers at a time at the transfer area. There is a staging area at the facility which\nPage 2 of 8\n\n\n\naccommodates an additional 4 to 5 trailer-mounted ISO tanks. There are never more than\n6 to 7 ISO tanks on-site at any one time.\n The LNG vaporizers are sized for a normal operational send out of 84.2 MSCFH and a\ndaily volume of 1.82 MMSCF. The vaporized natural gas is delivered into existing natural\ngas transmission pipelines for further distribution to the island.\n The Hawaii Gas LNG facility, including the surrounding synthetic natural gas (SNG)\nplant, also owned by Hawaii Gas, is located within 1000 feet of Kalaeloa Regional Park\nand Pearl Harbor National Wildlife Refuge, Kalaeloa Unit. The Kalaeloa Regional Park\nis located south of the LNG facility and contains forested and beach areas for walking and\ncamping. Additionally, Pearl Harbor National Wildlife Refuge, Kalaeloa Unit, once part\nof the former Barber's Point Naval Air Station, was established during military base\nclosure proceedings in 2001 to protect native Hawaiian plants.\n PHMSA conducted an on-site inspection at the Hawaii Gas LNG facility from April 13,\n2021, through April 16, 2021, and identified the following safety conditions:\no The two siting studies prepared for the Hawaii Gas LNG facility did not meet the\nsiting requirements in 49 C.F.R. Part 193, Subpart B as follows:\n The LNG Vaporization System (Plant Siting) Feasibility Study was\nconducted by the company’s LNG supplier, Clean Energy, in 2018. The\nrevision history of the report shows that the initial report was completed in\n2014, and the 2018 version provided by Hawaii Gas was a revised version.\nThe LNG Vaporization System (Plant Siting) Feasibility Study contained\ninadequate thermal radiation and flammable vapor dispersion exclusion\nzone calculations. The siting analysis for the LNG facility was not\nconducted in accordance with the requirements in 49 C.F.R. Part 193,\nSubpart B.\n The final report, Hawaii Gas Kapolei New SNG Plant Facility Siting Study,\ndated April 25, 2017, used API RP 752 and API RP 753 and did not follow\nthe siting requirements in the 2001 edition of National Fire Protection\nAssociation 59A (NFPA 59A-2001), which is incorporated by reference in\n49 C.F.R. § 193.2051. The regulations do not allow for API RP 752 or API\n753 to be used for siting under 49 C.F.R. § 193.2051.\no Hawaii Gas installed the vent stack in the middle of the LNG facility, adjacent to\nthe vaporization facility. The overpressure protection system (i.e., reliefs and\nbleeders) is connected to the vent stack, where flammable vapor released from the\nvent stack may disperse to an area with ignition sources.\no The stand-by or staging area for the containers is within 20 feet of the property line,\nand the staging area has no impoundment. Even though the ISO containers are\ndouble-walled, the outer shell was only rated to -40 degrees C/F. The integrity of\nPage 3 of 8\n\n\n\nthe outer shell will be affected by an inner tank failure. Therefore, an additional\nimpoundment area must be provided in accordance with NFPA 59A-2001 Section\n2.2.2.4, incorporated by reference in 49 C.F.R 193.\no The control room, administrative building, and shop areas are located less than 60\nfeet from the LNG transfer area and vaporization facility. There is no gas detection\nnear or around the entrances of the buildings.\no Currently, the LNG facility is not tied into the Distributed Control System (DCS)\ncontrol panel. At the time of the inspection, Hawaii Gas explained that the control\nroom for the LNG facility is an engineering station adjacent to the main control\npanel for the LNG facility.\no The LNG facility flare line ties into the SNG facility flare line that connects into\nthe adjacent refinery, which shares the flare with the Hawaii Gas SNG and LNG\nfacility. During the inspection, Hawaii Gas did not know if the flare could handle\nthe flow from Hawaii Gas and the refinery at the same time.\no During the inspection, Hawaii Gas’ Operations Supervisor claimed that he was the\nonly personnel trained on the vaporization process at the facility; therefore, having\nonly one trained individual to run the process.\no Respondent’s current Fire Protection Study does not discuss the capabilities of the\nfire water system. Hawaii Gas could not provide a coverage map for the fire\nmonitors, nor could they provide the capacity of the fire water system. It is\ncurrently unknown if the fire protection systems are adequate to detect, alert, and\nmitigate a fire at the facility.\n Hawaii Gas has indicated that it plans to conduct LNG pump testing in May 2021 by\nbringing in full LNG containers into the facility. Due to conditions identified during the\ninspection there are many areas of concern during the upcoming pump testing and\ncontinued operations of the LNG facility, including:\no an inadequate siting analysis and spill containment;\no the safety systems in place;\no management of the process control system;\no the limited personnel training and basic operating knowledge of the facility; and\no the safety and integrity of the LNG facility and the surrounding area.\nProposed Issuance of Safety Order:\nSection 60117(1) of Title 49, United States Code, provides for the issuance of a Safety Order, after\nreasonable notice and the opportunity for a hearing, requiring corrective action, which may include\nphysical inspection, testing, repair, replacement, or other action, as appropriate. The basis for\nmaking the determination that a pipeline facility has a condition or conditions that pose a pipeline\nintegrity risk to public safety, property, or the environment is set forth both in the above-referenced\nPage 4 of 8\n\n\n\nstatute and 49 C.F.R. § 190.239, a copy of which is enclosed.\nAfter evaluating the foregoing preliminary findings of fact and considering the hazardous nature\nof the product, the characteristics of the geographical area where the LNG facility is located\nincluding its proximity to an unusually sensitive area, and the likelihood that the issues could affect\nthe safety of other areas of the LNG facility including hampering the facility’s emergency\nresponse, it appears that continued operation of the affected Hawaii Gas LNG facility without\ncorrective measures may pose an integrity risk to public safety, property, or the environment.\nAccordingly, PHMSA issues this Notice to notify Respondent of the proposed issuance of a safety\norder and to propose that Respondent take measures specified herein to address the potential risks\nidentified in the Preliminary Findings and other risks that may be determined as a result of the\nproposed corrective measures.\nProposed Corrective Actions:\nPursuant to 49 U.S.C. § 60117(l) and 49 C.F.R. § 190.239, PHMSA proposes to issue to Hawaii\nGas a safety order incorporating the following remedial requirements with respect to its LNG\nfacility.\nNote: For the purposes of this Notice, \"Director\" means the Director, Southwest Region,\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety,\n8701 S. Gessner, Suite 630, Houston, Texas, 77074.\n1. Qualified Independent Third Party. Within 30 days of the date of the issuance of the\nSafety Order, Hawaii Gas shall select an Independent Third Party and submit its selection\nalong with their associated qualifications to demonstrate their knowledge and prior\nexperience of PHMSA regulated LNG facilities to the Director for approval.\nSiting Analysis. Within 90 days of the date of the Director’s approval of the Independent\nThird Party, Hawaii Gas shall submit a Siting Analysis of the LNG facility for the\nDirector’s approval. The Siting Analysis shall address all siting requirements in\naccordance with Part 193, Subpart B and NFPA 59A-2001 as incorporated by reference in\n49 C.F.R. § 193.2051.\n3. Gas Dispersion Study. Within 90 days of the date of the Director’s approval of the\nIndependent Third Party, and concurrent with the Siting Analysis, Hawaii Gas shall submit\na Gas Dispersion Study for the vapor vent stack(s) located within the LNG facility for the\nDirector’s approval. The Gas Dispersion Study will be in accordance with NFPA 5A-2001\nSection 3.4.5 as incorporated by reference in 49 C.F.R. § 193.2401.\nFire Protection Evaluation. Within 60 days after completing the Siting Analysis, Hawaii\nGas shall submit a Fire Protection Evaluation, performed by the approved Independent\nThird Party, for the Director’s approval. The fire protection evaluation must address all\nrequirements in 49 C.F.R. § 193.2801.\n2. 4. Page 5 of 8\n\n\n\n5. Operations, Maintenance, and Training Review. Within 90 days of the issuance of the\nSafety Order, Hawaii Gas, using the approved Independent Third Party, shall review and\nevaluate the current operations and maintenance procedures and training requirements\nassociated with personnel responsible for operations and maintenance within the LNG\nfacility. The review must also ensure that roles and responsibilities are clearly defined and\ninclude recommendations for implementing the procedures. All revisions to the procedures\nmust be submitted to the Director for review and approval. Following the Director’s\napproval, Hawaii Gas must implement the revised procedures and mandatory personnel\ntraining to accompany the revised procedures.\n6. Remedial Work Plan. Within 90 days after completing the corrective measures in\nparagraphs 2, 3, 4, and 5, Hawaii Gas shall prepare and submit a Remedial Work Plan\n(RWP) to the Director for review and approval. The RWP must include actions to remedy\nany issues identified by the Siting Analysis, Fire Protection Evaluation, Gas Dispersion\nStudy, and the Operations, Maintenance, and Training Review, as well as any other\nidentified safety risks determined by the aforementioned assessments.\na. The Director may incrementally approve parts of the RWP without approving the\nentire RWP.\nb. Once approved by the Director, the approved RWP increments or entire RWP is\nconsidered incorporated by reference into this Safety Order.\nc. The RWP must specify in detail the measures that Hawaii Gas will use to remedy\nany non-compliance issues identified.\nd. The RWP must include the following steps:\ni. Integrate the results of the Siting Review, Fire Protection Evaluation, the\nOperations, Maintenance, and Training Review, and any preexisting\noperational data, which includes, but is not limited to, construction,\noperations, maintenance, testing, repairs, and any third-party consultation\ninformation.\nii. Describe all remedial measures Hawaii Gas will use to prioritize, evaluate,\nrepair, or construct to comply with requirements in 49 C.F.R. Part 193 and\nNFPA 59A-2001.\niii. Include a proposed schedule for completion of the RWP and update as\nrequired.\niv. Submit any plan revisions to the Director for prior approval. The Director\nmay approve plan revisions incrementally.\nv. Update all facility drawings and records to reflect work completed in the\nRWP.\nPage 6 of 8\n\n\n\ne. Implement the RWP as it is approved by the Director, including any revisions.\n7. Reporting. Commencing on the date of the Safety Order, Hawaii Gas shall promptly report\nto the Director any abnormal operating conditions of components within the facility.\nAdditionally, Hawaii Gas shall submit monthly reports to the Director that include\ninformation regarding the progress on Siting Analysis, Fire Protection Evaluation, Gas\nDispersion Study, Maintenance, Operation, and Training Review, and the RWP required\nunder this Safety Order.\n8. Approvals. With respect to each submission under the final Safety Order that requires the\napproval of the Director, the Director may: (a) approve, in whole or part, the submission;\n(b) approve the submission on specified conditions; (c) modify the submission to cure any\ndeficiencies; (d) disapprove, in whole or in part, the submission, directing that Respondent\nmodify the submission; or (e) any combination of the above. In the event of approval,\napproval upon conditions, or modification by the Director, Hawaii Gas shall take all\nrequired actions in the submission as approved or modified by the Director. If the Director\ndisapproves all or any portion of the submission, Hawaii Gas shall correct all deficiencies\nwithin the time specified by the Director and resubmit it for approval. If a resubmitted item\nis disapproved in whole or in part, the Director may again","truncated":true,"body_characters":44606}