# HAWAII GAS — Safety Order

- **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:** Not available
- **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.

Official case documents:

42021042NOPSO_Closure Letter_10182023_(21-209129).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021042NOPSO/42021042NOPSO_Closure%20Letter_10182023_(21-209129).pdf

42021042NOPSO_Closure Letter_10182023_(21-209129)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021042NOPSO/42021042NOPSO_Closure%20Letter_10182023_(21-209129)_text.pdf

42021042NOPSO_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

42021042NOPSO_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

42021042NOPSO_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

42021042NOPSO_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

42021042NOPSO_Closure Letter_10182023_(21-209129)_text.pdf

VIA ELECTRONIC MAIL TO: amoy@hawaiigas.com
October 18, 2023
Alicia Moy
President & Chief Executive Officer
Hawai’i Gas
745 Fort Street Mall, Ste. 1800
Honolulu, Hawai’i 96813
CPF 4-2021-042-NOPSO
Dear Ms. Moy:
On May 28, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued
a Notice of Proposed Safety Order (Notice) to Hawai’i Gas. The Notice alleged that conditions
existed on Hawaii Gas’ LNG facility that posed a pipeline integrity risk to public safety, property,
or the environment, and proposed that Hawaii Gas take certain corrective measures to remedy the
alleged conditions to ensure that the public, property, and the environment are protected from the
potential risk.
On August 23, 2021, PHMSA and Hawai’i Gas entered into a Consent Agreement and Order
(Agreement) to resolve the issues in the Notice. On May 23, 2023, Hawai’i Gas notified PHMSA
that all requirements in the Agreement were complete.
PHMSA reviewed the responses provided to demonstrate compliance with the Agreement and
determined that Hawai’i Gas has completed the required corrective measures in the Agreement.
This letter is to inform you that no further actions in this case are required, the Agreement is
terminated, and this case is now closed. Thank you for your cooperation.
Sincerely,
Bryan Lethcoe
Director, Southwest Region, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration



cc: Linda Daugherty, Deputy Associate Administrator for Field Operations, Office of
Pipeline Safety, PHMSA
Keith Yamamoto, Manager, Engineering, Hawaii Gas, kkyamamo@hawaiigas.com
Kevin Nishimura, Vice President, Operations, Hawaii Gas, knishimu@hawaiigas.com
Bryn Karaus, Van Ness Feldman, Counsel for Hawaii Gas, bsk@vnf.com

42021042NOPSO_Consent Agreement and Order_08232021_(21-209129)_text.pdf

August 23, 2021
VIA ELECTRONIC MAIL TO: amoy@hawaiigas.com
Alicia Moy
President & Chief Executive Officer
Hawaii Gas
745 Fort Street Mall, Ste. 1800
Honolulu, Hawaii 96813
CPF No. CPF 4-2021-042-NOPSO
Dear Ms. Moy:
Enclosed please find a Consent Order incorporating the terms of the fully executed Consent
Agreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and
Hawaii Gas, which was executed on August 19, 2021. Service of the Consent Order and Consent
Agreement by e-mail is deemed effective upon the date of transmission, or as otherwise provided
under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosures: Consent Order and Consent Agreement
cc: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA
Ms. Linda Daugherty, Deputy Associate Administrator for Field Operations, Office of
Pipeline Safety, PHMSA
Mr. Edwin Sawa, General Manager, Hawaii Gas, esawa@hawaiigas.com
Mr. Kevin Nishimura, Vice President, Operations, Hawaii Gas, knishimu@hawaiigas.com
Ms. Bryn Karaus, Van Ness Feldman, Counsel for Hawaii Gas,
bsk@vnf.com
CONFIRMATION OF RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
_______________________________________
In the Matter of )
The Gas Company, LLC, ) CPF No. 4-2021-042-NOPSO
dba Hawaii Gas, )
Respondent. )
)
)
)
)
CONSENT ORDER
By letter dated May 28, 2021, the Pipeline and Hazardous Materials Safety Administration
(PHMSA), Office of Pipeline Safety, issued a Notice of Proposed Safety Order (Notice) to Hawaii
Gas.1
In accordance with 49 C.F.R. Part 193, the Notice alleged that conditions exist on Respondent’s
liquefied natural gas facility located in Oahu, Hawaii, that pose a pipeline integrity risk to public
safety, property, or the environment. The Notice also proposed that Respondent take certain
corrective measures to remedy the alleged conditions and ensure that the public, property, and the
environment are protected from the potential risk.
In response to the Notice, Respondent requested an informal consultation, whereupon the parties
engaged in good-faith settlement discussions that have resulted in the Consent Agreement attached
to this Consent Order that settles all of the allegations in the Notice.
Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this
Consent Order. The Respondent is hereby ordered to comply with the terms of the Consent
Agreement, effective immediately.
Pursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the
assessment of civil penalties as set forth in 49 C.F.R. § 190.223, or in referral to the Attorney
General for appropriate relief in a district court of the United States.
The terms and conditions of this Consent Order are effective upon service in accordance with
49 C.F.R. § 190.5.
August 23, 2021
________________________ ________________________
Alan K. Mayberry Date
Associate Administrator
for Pipeline Safety, PHMSA
1 Hawaii Gas is the trade name of The Gas Company, LLC.



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
_______________________________________
)
In the Matter of )
)
The Gas Company, LLC, ) CPF No. 4-2021-042-NOPSO
dba Hawaii Gas, )
)
Respondent. )
____________________________________)
CONSENT AGREEMENT
On May 28, 2021, pursuant to 49 C.F.R. § 190.239, the Pipeline and Hazardous Materials Safety
Administration (PHMSA), Office of Pipeline Safety, Southwest Region, issued a Notice of
Proposed Safety Order (Notice) to Hawaii Gas2 (Hawaii Gas or Respondent). The Notice was
issued after PHMSA initiated an information and record review and conducted an on-site
inspection to determine compliance with 49 C.F.R. Part 193 at Hawaii Gas’ liquefied natural gas
(LNG) facility located in Oahu, Hawaii. The on-site inspection was conducted from April 12
through April 16, 2021, meanwhile the information review remains ongoing. While the facility
was not in operation at the time of the inspection and is currently not in operation, Hawaii Gas
remains obligated to comply with 49 C.F.R. Part 193 while the facility remains in service. As a
result of this review and inspection, OPS issued the Notice, which alleged that conditions exist on
Respondent’s LNG facility that pose a pipeline integrity risk to public safety, property, or the
environment, and proposed that Respondent take certain corrective measures to remedy the alleged
conditions to ensure that the public, property, and the environment are protected from the potential
risk.
On June 23, 2021, Hawaii Gas responded to the Notice by timely submitting a written response
and a request for an informal consultation. An informal consultation was held virtually on July
19, 2021.
As a result of the informal consultation, PHMSA and Respondent (the Parties) agreed that
settlement of this proceeding will avoid further administrative proceedings or litigation of the
Notice and that entry into this Consent Agreement (Agreement) is the most appropriate means of
resolving the issues raised in the Notice and is generally in the public interest. Therefore, pursuant
to 49 C.F.R. Part 190, without adjudication of any issue of fact or law, and upon consent and
agreement of the Parties, PHMSA and Hawaii Gas agree as follows:
2 Hawaii Gas is the trade name of The Gas Company, LLC.



CPF No. 4-2021-042-NOPSO
Page 2
I. General Provisions
1. Respondent acknowledges that as the operator of the Hawaii Gas LNG facility,
Respondent and its LNG facility are subject to the jurisdiction of the Federal pipeline safety laws,
49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder. For
purposes of this Agreement, Respondent acknowledges that it received proper notice of PHMSA’s
action in this proceeding and that the Notice states claims upon which relief may be granted
pursuant to 49 U.S.C. § 60101, et seq., and the regulations and orders issued thereunder.
2. Respondent agrees, for purposes of this Agreement, to address the integrity risks
identified in the Notice by completing the actions specified in Section II of this agreement
(Corrective Measures) and to abide by the terms of this Agreement. This Agreement does not
constitute a finding of violation of any Federal law or regulation and may not be used in any civil
or administrative proceeding of any kind as evidence or proof of any fact, fault or liability, or as
evidence of the violation of any law, rule, regulation or requirement, except in a proceeding to
enforce the provisions of this Agreement.
3. After Respondent returns this signed Agreement to PHMSA, the Agency’s
representative will present it to the Associate Administrator for Pipeline Safety, recommending that
the Associate Administrator adopt the terms of this Agreement by issuing an administrative order
(Consent Order) incorporating the terms of this Agreement. The terms of this Agreement constitute
an offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate
Administrator will issue a Consent Order incorporating the terms of this Agreement.
4. Respondent consents to the issuance of the Consent Order, and hereby waives any
further procedural requirements with respect to its issuance. Respondent waives all rights to
contest the adequacy of notice, or the validity of the Consent Order or this Agreement, including
all rights to administrative or judicial hearings or appeals, except as set forth herein.
5. This Agreement will apply to and be binding upon PHMSA, and upon Respondent,
its officers, directors, and employees, and its successors, assigns, or other entities or persons
otherwise bound by law. Respondent agrees to provide a copy of this Agreement and any
incorporated work plans and schedules to all of Respondent’s officers, employees, and agents
whose duties might reasonably include compliance with this Agreement.
6. For all transfers of ownership or operating responsibility of Respondent’s Oahu,
Hawaii LNG facility, Respondent will provide a copy of this Agreement to the prospective
transferee at least 30 days prior to such transfer and provide written notice of the transfer within
30 days to the PHMSA Southwest Region Director (Director) who issued the Notice.
7. This Agreement constitutes the final, complete and exclusive agreement and
understanding between the Parties with respect to the settlement embodied in this Agreement. The
Parties acknowledge that there are no representations, agreements or understandings relating to
settlement other than those expressly contained in this Agreement, except that the terms of this
Agreement may be construed by reference to the Notice.



CPF No. 4-2021-042-NOPSO
Page 3
8. Nothing in this Agreement affects or relieves Respondent of its responsibility to
comply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et
seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's
right of access, entry, inspection, and information gathering or PHMSA’s authority to bring
enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the
regulations and orders issued thereunder, or any other provision of Federal or State law.
9. This Agreement does not waive or modify any Federal, State, or local laws or
regulations that are applicable to Respondent’s pipeline systems. This Agreement is not a permit,
or a modification of any permit, under any Federal, State, or local laws or regulations. Respondent
remains responsible for achieving and maintaining compliance with all applicable Federal, State,
and local laws, regulations and permits.
10. This Agreement does not create rights in, or grant any cause of action to, any third
party not party to this Agreement. The U.S. Department of Transportation is not liable for any
injuries or damages to persons or property arising from acts or omissions of Respondent or its
officers, employees, or agents carrying out the work required by this Agreement. Respondent
agrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents,
and representatives from any and all causes of action arising from any acts or omissions of
Respondent or its contractors in carrying out any work required by this Agreement.
II. Corrective Measures
11. Measures set forth below.
Upon issuance of the Consent Order, Respondent agrees to perform the Corrective
12. Qualified Independent Third Party. Within 30 days of the Effective Date of the
Consent Order, Respondent shall select an Independent Third Party and submit its selection along
with its associated qualifications to demonstrate its knowledge and prior experience of
PHMSA-regulated LNG facilities to the Director for approval.
13. Siting Analysis. Within 90 days of the date of the Director’s approval of the
Independent Third Party, Respondent shall submit a Siting Analysis of the LNG facility, performed
by the approved independent third party, for the Director’s approval. The Siting Analysis shall
address all siting requirements in accordance with Part 193, Subpart B and NFPA 59A-2001 as
incorporated by reference in 49 C.F.R. § 193.2051.
14. Gas Dispersion Study. Within 90 days of the date of the Director’s approval of the
Independent Third Party, and concurrent with the Siting Analysis, Respondent shall submit a Gas
Dispersion Study for the vapor vent stack(s) located within the LNG facility, performed by the
approved independent third party, for the Director’s approval. The Gas Dispersion Study will be
in accordance with NFPA 59A-2001, Section 3.4.5, as incorporated by reference in 49 C.F.R. §
193.2401.



CPF No. 4-2021-042-NOPSO
Page 4
15. Fire Protection Evaluation. Within 60 days after completing the Siting Analysis,
Respondent shall submit a Fire Protection Evaluation, performed by the approved Independent
Third Party, for the Director’s approval. The fire protection evaluation must address all
requirements in 49 C.F.R. § 193.2801.
16. Operations, Maintenance, and Training Review. Within 90 days of the Effective
Date of the Consent Order, Respondent shall review and evaluate the current operations and
maintenance procedures and training requirements associated with personnel responsible for
operations and maintenance within the LNG facility, with such review and evaluation being
conducted by the approved Independent Third Party. The review must also ensure that roles and
responsibilities are clearly defined and include recommendations for implementing the procedures.
All revisions to the procedures must be submitted to the Director for review and approval.
Following the Director’s approval, Respondent must implement the revised procedures and
mandatory personnel training to accompany the revised procedures.
17. Remedial Work Plan. Within 90 days after completing the corrective measures in
paragraphs 13, 14, 15 and 16, Respondent shall prepare and submit a Remedial Work Plan (RWP)
to the Director for review and approval. The RWP must include actions to remedy any issues of
non-compliance identified by the Siting Analysis, Fire Protection Evaluation, Gas Dispersion
Study, and the Operations, Maintenance, and Training Review, as well as any other identified
safety risks determined by the aforementioned assessments.
a. The Director may incrementally approve parts of the RWP without approving the
entire RWP.
b. Once approved by the Director, the approved RWP increments, parts or entire RWP
is considered incorporated by reference into this Agreement.
c. The RWP must specify in detail the measures that Hawaii Gas will use to remedy
any non-compliance identified by the aforementioned assessments.
d. The RWP must include the following steps:
i. Integrate the results of the Siting Review, Fire Protection Evaluation, Gas
Dispersion Study, the Operations, Maintenance, and Training Review, and
any preexisting operational data, which includes, but is not limited to,
construction, operations, maintenance, testing, repairs, and any third-party
consultation information.
ii. Describe all remedial measures Hawaii Gas will use to prioritize, evaluate,
repair, modify, or construct to comply with requirements in 49 C.F.R. Part
193 and NFPA 59A-2001.
iii. Include a proposed schedule for completion of the RWP and update as
required.



iv. v. e. CPF No. 4-2021-042-NOPSO
Page 5
Submit any plan revisions to the Director for prior approval. The Director
may approve plan revisions incrementally.
Update all facility drawings and records to reflect work completed in the
RWP.
Implement the RWP as it is approved by the Director, including any revisions.
18. Reporting. From the Effective Date of the Consent Order, Respondent shall
promptly report to the Director any abnormal operating conditions of components within the
facility. Additionally, Respondent shall submit quarterly reports to the Director that include
information regarding the progress on Siting Analysis, Fire Protection Evaluation, Gas Dispersion
Study, Maintenance, Operation, and Training Review, and the RWP required under this Consent
Order. The first quarterly report will be due on October 15, 2021, which will cover the period
from the Effective Date of the Consent Order to September 30, 2021.
Subsequent Quarterly Reports are due 15 days after the end of the applicable quarter.
19. Extensions of Time. The Director may grant an extension of time for compliance
with any of the terms of the Agreement upon a written request timely submitted demonstrating
good cause for an extension. The Director shall respond in writing to any such request.
20. Appeals. Respondent may appeal any decision of the Director to the Associate
Administrator for Pipeline Safety. Decisions of the Associate Administrator will be final.
III. Review and Approval Process
21. With respect to any submission under Section II (Corrective Measures) of this
Agreement that requires the approval of the Director, the Director may: (a) approve, in whole or
in part, the submission, (b) approve the submission on specified, reasonable conditions, (c)
disapprove, in whole or in part, the submission, or (d) any combination of the foregoing. If the
Director approves, approves in part, or approves with conditions, Respondent will take all action
as approved by the Director, subject to Respondent’s right to invoke the dispute resolution
procedures with respect to any conditions the Director identifies. If the Director disapproves all
or any portion of the submission, the Director will provide Respondent with a written notice of the
deficiencies. Respondent will correct all deficiencies within the time specified by the Director and
resubmit it for approval.
IV. Dispute Resolution
22. The Director and Respondent will informally attempt to resolve any disputes arising
under this Agreement. If Respondent and the Director are unable to informally resolve the dispute
within 15 days of submittal of Respondent’s invoking dispute resolution, Respondent may request
in writing, within 10 days thereafter, a written determination resolving the dispute from the
Associate Administrator for Pipeline Safety providing all information that Respondent believes is
relevant to the dispute. If the request is submitted as provided herein, the Associate Administrator
will issue a final determination in writing. The existence of a dispute and PHMSA’s consideration



CPF No. 4-2021-042-NOPSO
Page 6
of matters placed in dispute will not excuse, toll, or suspend any term or timeframe for completion
of any work to be performed under this Agreement during pendency of the dispute resolution
process except as agreed by the Director or the Associate Administrator in writing.
V. Enforcement
23. This Agreement, as adopted by the Consent Order, is subject to all enforcement
authorities available to the PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190. All
work plans and associated schedules set forth or referenced in Section II will be automatically
incorporated into this Agreement and are enforceable in the same manner.
VI. Recordkeeping and Information Disclosure
24. Unless otherwise required in this Agreement, Respondent agrees to maintain
records demonstrating compliance with all requirements of this Agreement for a period of at least
five years following completion of all work to be performed. For any reports, plans, or other
deliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent may
assert a claim of business confidentiality or other protections applicable to the release of
information by PHMSA, covering part or all of the information required to be submitted to
PHMSA pursuant to this Agreement in accordance with 49 C.F.R. Part 7. Respondent must mark
the claim of confidentiality in writing on each page, and include a statement specifying the grounds
for each claim of confidentially. PHMSA determines release of any information submitted
pursuant to this Agreement in accordance with 49 C.F.R. Part 7, the Freedom of Information Act,
5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations and Executive Orders.
VII. Effective Date
25. The term “Effective Date,” as used herein, is the date on which the Consent Order
is issued by the Associate Administrator incorporating the terms of this Agreement. Unless
specified to the contrary, all deadlines for actions required by this Agreement run from the
Effective Date of the Consent Order.
VIII. Modification
26. The terms of this Agreement may be modified by mutual agreement of the Parties.
Such modifications must be in writing and signed by both parties.
IX. Termination
27. This Agreement will remain in effect until the Corrective Measures in Section II
are satisfied, as determined by the Director. Respondent may request written confirmation from
PHMSA when this Consent Agreement is terminated and the Director will provide such
confirmation. Nothing in this Agreement prevents Respondent from completing any of the
obligations earlier than the deadlines provided for in this Agreement.



CPF No. 4-2021-042-NOPSO
Page 7
X. Ratification
28. The Parties’ undersigned representatives certify that they are fully authorized to
enter into the terms and conditions of this Agreement and to execute and legally bind such party
to this document.
29. For HAWAII GAS:
The Parties hereby agree to all conditions and terms of this Agreement.
___________________________________
Kevin Nishimura
Vice President, Operations
Hawai’i Gas
________________________
Date
For PHMSA:
___________________________________
Mary L. McDaniel, P.E.
Director, Southwest Region, OPS
________________________
Date

42021042NOPSO_Notice of Proposed Safety Order_05282021_(21-209129)_text.pdf

VIA E-MAIL:
May 28, 2021
Alicia Moy
President & CEO
Hawaii Gas
745 Fort Street Mall, Ste. 1800
Honolulu, Hawaii 96813
CPF 4-2021-042-NOPSO
Dear Ms. Moy:
Enclosed is a Notice of Proposed Safety Order (Notice) issued by the Pipeline and Hazardous
Materials Safety Administration (PHMSA) in the above-referenced case. The Notice proposes that
Hawaii Gas take certain measures with respect to its liquefied natural facility located in Oahu,
Hawaii. The options for responding are set forth in the Notice. Your receipt of the Notice
constitutes service of that document under 49 C.F.R. § 190.5.
We look forward to a successful resolution to ensure pipeline safety. Please direct any questions
on this matter to me at 713-272-2847.
Thank you for your cooperation in this matter.
Sincerely,
Mary L. McDaniel, P.E.
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
Enclosures: Notice of Proposed Safety Order
Copy of 49 C.F.R. § 190.239
cc: Ms. Linda Daugherty, Deputy Associate Administrator for Field Operations, PHMSA
Mr. Edwin Sawa, General Manager, Hawaii Gas, esawa@hawaiigas.com



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
SOUTHWEST REGION
HOUSTON, TX 77074
_________________________________________ )
In the Matter of )
Hawaii Gas, ) CPF No. 4-2021-042-NOPSO
)
)
Respondent. )
_________________________________________ )
NOTICE OF PROPOSED SAFETY ORDER
Background and Purpose:
Pursuant to Chapter 601 of Title 49, United States Code, the Pipeline and Hazardous Materials
Safety Administration (PHMSA), Office of Pipeline Safety (OPS), has initiated an information
and record review and conducted on-site inspection (April 12, 2021 through April 16, 2021) to
determine compliance with 49 Code of Federal Regulations (C.F.R.) Part 193 at Hawaii Gas’
(Hawaii Gas or Respondent) liquefied natural gas (LNG) facility located in Oahu, Hawaii.
As a result of the review and on-site inspection, it appears that a condition or conditions exist on
Hawaii Gas’s LNG facilities that pose an integrity risk to public safety, property, or the
environment. Accordingly, PHMSA OPS issues this Notice of Proposed Safety Order (Notice),
pursuant to 49 U.S.C. § 60117(l), notifying you of the preliminary findings of the inspection and
proposing that Hawaii Gas take measures to ensure that the public, property, and the environment
are protected from the potential risk.
Preliminary Findings:
 The Hawaii Gas LNG facility, located in Oahu, Hawaii, is designed to vaporize LNG that
has been delivered to the facility in International Organization for Standardization (ISO)
containers via container ship from California. Once a container ship arrives to Hawaii,
the ISO containers, which act as the transportation vessel for the fuel, are delivered to the
LNG facility via tractor-trailers. LNG is then pumped from the ISO containers to a heat
exchanging system which vaporizes the LNG.
 The ISO containers, as designed, have a water capacity of 45,000 liters (or approximately
11,880 gallons); however, the tanks are loaded in California with approximately 9,000
gallons of LNG per container. The LNG plant is designed for parking two trailer-mounted
containers at a time at the transfer area. There is a staging area at the facility which
Page 2 of 8



accommodates an additional 4 to 5 trailer-mounted ISO tanks. There are never more than
6 to 7 ISO tanks on-site at any one time.
 The LNG vaporizers are sized for a normal operational send out of 84.2 MSCFH and a
daily volume of 1.82 MMSCF. The vaporized natural gas is delivered into existing natural
gas transmission pipelines for further distribution to the island.
 The Hawaii Gas LNG facility, including the surrounding synthetic natural gas (SNG)
plant, also owned by Hawaii Gas, is located within 1000 feet of Kalaeloa Regional Park
and Pearl Harbor National Wildlife Refuge, Kalaeloa Unit. The Kalaeloa Regional Park
is located south of the LNG facility and contains forested and beach areas for walking and
camping. Additionally, Pearl Harbor National Wildlife Refuge, Kalaeloa Unit, once part
of the former Barber's Point Naval Air Station, was established during military base
closure proceedings in 2001 to protect native Hawaiian plants.
 PHMSA conducted an on-site inspection at the Hawaii Gas LNG facility from April 13,
2021, through April 16, 2021, and identified the following safety conditions:
o The two siting studies prepared for the Hawaii Gas LNG facility did not meet the
siting requirements in 49 C.F.R. Part 193, Subpart B as follows:
 The LNG Vaporization System (Plant Siting) Feasibility Study was
conducted by the company’s LNG supplier, Clean Energy, in 2018. The
revision history of the report shows that the initial report was completed in
2014, and the 2018 version provided by Hawaii Gas was a revised version.
The LNG Vaporization System (Plant Siting) Feasibility Study contained
inadequate thermal radiation and flammable vapor dispersion exclusion
zone calculations. The siting analysis for the LNG facility was not
conducted in accordance with the requirements in 49 C.F.R. Part 193,
Subpart B.
 The final report, Hawaii Gas Kapolei New SNG Plant Facility Siting Study,
dated April 25, 2017, used API RP 752 and API RP 753 and did not follow
the siting requirements in the 2001 edition of National Fire Protection
Association 59A (NFPA 59A-2001), which is incorporated by reference in
49 C.F.R. § 193.2051. The regulations do not allow for API RP 752 or API
753 to be used for siting under 49 C.F.R. § 193.2051.
o Hawaii Gas installed the vent stack in the middle of the LNG facility, adjacent to
the vaporization facility. The overpressure protection system (i.e., reliefs and
bleeders) is connected to the vent stack, where flammable vapor released from the
vent stack may disperse to an area with ignition sources.
o The stand-by or staging area for the containers is within 20 feet of the property line,
and the staging area has no impoundment. Even though the ISO containers are
double-walled, the outer shell was only rated to -40 degrees C/F. The integrity of
Page 3 of 8



the outer shell will be affected by an inner tank failure. Therefore, an additional
impoundment area must be provided in accordance with NFPA 59A-2001 Section
2.2.2.4, incorporated by reference in 49 C.F.R 193.
o The control room, administrative building, and shop areas are located less than 60
feet from the LNG transfer area and vaporization facility. There is no gas detection
near or around the entrances of the buildings.
o Currently, the LNG facility is not tied into the Distributed Control System (DCS)
control panel. At the time of the inspection, Hawaii Gas explained that the control
room for the LNG facility is an engineering station adjacent to the main control
panel for the LNG facility.
o The LNG facility flare line ties into the SNG facility flare line that connects into
the adjacent refinery, which shares the flare with the Hawaii Gas SNG and LNG
facility. During the inspection, Hawaii Gas did not know if the flare could handle
the flow from Hawaii Gas and the refinery at the same time.
o During the inspection, Hawaii Gas’ Operations Supervisor claimed that he was the
only personnel trained on the vaporization process at the facility; therefore, having
only one trained individual to run the process.
o Respondent’s current Fire Protection Study does not discuss the capabilities of the
fire water system. Hawaii Gas could not provide a coverage map for the fire
monitors, nor could they provide the capacity of the fire water system. It is
currently unknown if the fire protection systems are adequate to detect, alert, and
mitigate a fire at the facility.
 Hawaii Gas has indicated that it plans to conduct LNG pump testing in May 2021 by
bringing in full LNG containers into the facility. Due to conditions identified during the
inspection there are many areas of concern during the upcoming pump testing and
continued operations of the LNG facility, including:
o an inadequate siting analysis and spill containment;
o the safety systems in place;
o management of the process control system;
o the limited personnel training and basic operating knowledge of the facility; and
o the safety and integrity of the LNG facility and the surrounding area.
Proposed Issuance of Safety Order:
Section 60117(1) of Title 49, United States Code, provides for the issuance of a Safety Order, after
reasonable notice and the opportunity for a hearing, requiring corrective action, which may include
physical inspection, testing, repair, replacement, or other action, as appropriate. The basis for
making the determination that a pipeline facility has a condition or conditions that pose a pipeline
integrity risk to public safety, property, or the environment is set forth both in the above-referenced
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statute and 49 C.F.R. § 190.239, a copy of which is enclosed.
After evaluating the foregoing preliminary findings of fact and considering the hazardous nature
of the product, the characteristics of the geographical area where the LNG facility is located
including its proximity to an unusually sensitive area, and the likelihood that the issues could affect
the safety of other areas of the LNG facility including hampering the facility’s emergency
response, it appears that continued operation of the affected Hawaii Gas LNG facility without
corrective measures may pose an integrity risk to public safety, property, or the environment.
Accordingly, PHMSA issues this Notice to notify Respondent of the proposed issuance of a safety
order and to propose that Respondent take measures specified herein to address the potential risks
identified in the Preliminary Findings and other risks that may be determined as a result of the
proposed corrective measures.
Proposed Corrective Actions:
Pursuant to 49 U.S.C. § 60117(l) and 49 C.F.R. § 190.239, PHMSA proposes to issue to Hawaii
Gas a safety order incorporating the following remedial requirements with respect to its LNG
facility.
Note: For the purposes of this Notice, "Director" means the Director, Southwest Region,
Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety,
8701 S. Gessner, Suite 630, Houston, Texas, 77074.
1. Qualified Independent Third Party. Within 30 days of the date of the issuance of the
Safety Order, Hawaii Gas shall select an Independent Third Party and submit its selection
along with their associated qualifications to demonstrate their knowledge and prior
experience of PHMSA regulated LNG facilities to the Director for approval.
Siting Analysis. Within 90 days of the date of the Director’s approval of the Independent
Third Party, Hawaii Gas shall submit a Siting Analysis of the LNG facility for the
Director’s approval. The Siting Analysis shall address all siting requirements in
accordance with Part 193, Subpart B and NFPA 59A-2001 as incorporated by reference in
49 C.F.R. § 193.2051.
3. Gas Dispersion Study. Within 90 days of the date of the Director’s approval of the
Independent Third Party, and concurrent with the Siting Analysis, Hawaii Gas shall submit
a Gas Dispersion Study for the vapor vent stack(s) located within the LNG facility for the
Director’s approval. The Gas Dispersion Study will be in accordance with NFPA 5A-2001
Section 3.4.5 as incorporated by reference in 49 C.F.R. § 193.2401.
Fire Protection Evaluation. Within 60 days after completing the Siting Analysis, Hawaii
Gas shall submit a Fire Protection Evaluation, performed by the approved Independent
Third Party, for the Director’s approval. The fire protection evaluation must address all
requirements in 49 C.F.R. § 193.2801.
2. 4. Page 5 of 8



5. Operations, Maintenance, and Training Review. Within 90 days of the issuance of the
Safety Order, Hawaii Gas, using the approved Independent Third Party, shall review and
evaluate the current operations and maintenance procedures and training requirements
associated with personnel responsible for operations and maintenance within the LNG
facility. The review must also ensure that roles and responsibilities are clearly defined and
include recommendations for implementing the procedures. All revisions to the procedures
must be submitted to the Director for review and approval. Following the Director’s
approval, Hawaii Gas must implement the revised procedures and mandatory personnel
training to accompany the revised procedures.
6. Remedial Work Plan. Within 90 days after completing the corrective measures in
paragraphs 2, 3, 4, and 5, Hawaii Gas shall prepare and submit a Remedial Work Plan
(RWP) to the Director for review and approval. The RWP must include actions to remedy
any issues identified by the Siting Analysis, Fire Protection Evaluation, Gas Dispersion
Study, and the Operations, Maintenance, and Training Review, as well as any other
identified safety risks determined by the aforementioned assessments.
a. The Director may incrementally approve parts of the RWP without approving the
entire RWP.
b. Once approved by the Director, the approved RWP increments or entire RWP is
considered incorporated by reference into this Safety Order.
c. The RWP must specify in detail the measures that Hawaii Gas will use to remedy
any non-compliance issues identified.
d. The RWP must include the following steps:
i. Integrate the results of the Siting Review, Fire Protection Evaluation, the
Operations, Maintenance, and Training Review, and any preexisting
operational data, which includes, but is not limited to, construction,
operations, maintenance, testing, repairs, and any third-party consultation
information.
ii. Describe all remedial measures Hawaii Gas will use to prioritize, evaluate,
repair, or construct to comply with requirements in 49 C.F.R. Part 193 and
NFPA 59A-2001.
iii. Include a proposed schedule for completion of the RWP and update as
required.
iv. Submit any plan revisions to the Director for prior approval. The Director
may approve plan revisions incrementally.
v. Update all facility drawings and records to reflect work completed in the
RWP.
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e. Implement the RWP as it is approved by the Director, including any revisions.
7. Reporting. Commencing on the date of the Safety Order, Hawaii Gas shall promptly report
to the Director any abnormal operating conditions of components within the facility.
Additionally, Hawaii Gas shall submit monthly reports to the Director that include
information regarding the progress on Siting Analysis, Fire Protection Evaluation, Gas
Dispersion Study, Maintenance, Operation, and Training Review, and the RWP required
under this Safety Order.
8. Approvals. With respect to each submission under the final Safety Order that requires the
approval of the Director, the Director may: (a) approve, in whole or part, the submission;
(b) approve the submission on specified conditions; (c) modify the submission to cure any
deficiencies; (d) disapprove, in whole or in part, the submission, directing that Respondent
modify the submission; or (e) any combination of the above. In the event of approval,
approval upon conditions, or modification by the Director, Hawaii Gas shall take all
required actions in the submission as approved or modified by the Director. If the Director
disapproves all or any portion of the submission, Hawaii Gas shall correct all deficiencies
within the time specified by the Director and resubmit it for approval. If a resubmitted item
is disapproved in whole or in part, the Director may again
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