{"operation":"document","citation":"CPF 42022051NOPSO","title":"FREEPORT LNG DEVELOPMENT, L.P. — Safety Order","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-06-30","effective_on":null,"summary":"CLOSED safety order.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022051nopso.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022051nopso.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022051nopso","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42022051NOPSO","body":"Safety Order involving FREEPORT LNG DEVELOPMENT, L.P.. The dataset does not identify a cited regulation for this case. The case was opened on 2022-06-30 and is reported as closed as of 2025-07-03. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42022051NOPSO_Closure Letter_07032025_(22-245663).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022051NOPSO/42022051NOPSO_Closure%20Letter_07032025_(22-245663).pdf\n\n42022051NOPSO_Closure Letter_07032025_(22-245663)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022051NOPSO/42022051NOPSO_Closure%20Letter_07032025_(22-245663)_text.pdf\n\n42022051NOPSO_Consent Agreement and Order_08032022_(22-245663).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022051NOPSO/42022051NOPSO_Consent%20Agreement%20and%20Order_08032022_(22-245663).pdf\n\n42022051NOPSO_Consent Agreement and Order_08032022_(22-245663)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022051NOPSO/42022051NOPSO_Consent%20Agreement%20and%20Order_08032022_(22-245663)_text.pdf\n\n42022051NOPSO_Notice of Proposed Safety Order_06302022_(22-245663).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022051NOPSO/42022051NOPSO_Notice%20of%20Proposed%20Safety%20Order_06302022_(22-245663).pdf\n\n42022051NOPSO_Notice of Proposed Safety Order_06302022_(22-245663)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022051NOPSO/42022051NOPSO_Notice%20of%20Proposed%20Safety%20Order_06302022_(22-245663)_text.pdf\n\n42022051NOPSO_Consent Agreement and Order_08032022_(22-245663)_text.pdf\n\nAugust 3, 2022\nVIA ELECTRONIC MAIL TO: MSmith@freeportlng.com\nMr. Michael Smith\nChairman and Chief Executive Officer\nFreeport LNG Development, LP\n333 Clay Street, Suite 5050\nHouston, Texas 77002\nRe: CPF 4-2022-051-NOPSO\nDear Mr. Smith:\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\nFreeport LNG Development, LP, which was executed on August 2, 2022. Service of the Consent\nOrder and Consent Agreement by e-mail is deemed effective upon the date of transmission, or as\notherwise 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: Consent Order and Consent Agreement\ncc: Ms. Mary McDaniel, P.E., Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. Michael Stephenson, Regulatory Compliance Manager, Freeport LNG Development,\nLP, MStephenson@freeportlng.com\nMr. Mark Mallett, P.E, Vice President of Operations and Engineering, Freeport LNG\nDevelopment, LP, MMallett@freeportlng.com\n\n\n\nMr. Shaw Ottis, Vice President, General Counsel & Secretary, Freeport LNG\nDevelopment, LP, SOttis@freeportlng.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 )\nFreeport LNG Development, LP, ) CPF No. 4-2022-051-NOPSO\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated June 30, 2022, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety, issued a Notice of Proposed Safety Order (Notice) to\nFreeport LNG Development, LP.\nIn accordance with 49 C.F.R. § 190.239, the Notice alleged that conditions exist on\nRespondent’s liquefied natural gas export facility located on Quintana Island, Texas, that posed a\npipeline integrity risk to public safety, property, or the environment. The Notice also proposed\nthat Respondent take certain corrective measures to remedy the alleged conditions and ensure\nthat the public, property, and the environment 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\nattached to 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\nthe assessment 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 3, 2022\nAlan K. Mayberry Date\nAssociate Administrator\nfor Pipeline Safety, PHMSA\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 )\nFreeport LNG Development, LP, ) CPF No. 4-2022-051-NOPSO\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nOn June 30, 2022, 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 Freeport LNG Development, LP (Freeport or Respondent). The\nNotice was issued after a reportable incident1 occurred on June 8, 2022, at Freeport’s liquefied\nnatural gas (LNG) export facility (Export Facility) located on Quintana Island, Texas.\nAt approximately 11:40 a.m. Central Daylight Time (CDT), an explosion and associated fire\noccurred in a pipe rack located near the LNG storage tanks at Freeport’s Export Facility. It was\nreported an estimated 0.12 million cubic feet of LNG was released. There were no injuries or\nfatalities, nor were there any direct physical impacts offsite. Freeport notified PHMSA of the\nincident via the National Response Center (NRC) (NRC Report 1338144) at 12:36 p.m. CDT.\nPHMSA subsequently deployed personnel to Freeport’s Export Facility to gain additional\nsituational awareness and initiate its investigation. The cause of the explosion and subsequent fire\nis currently under investigation.\nAs a result of a preliminary investigation, PHMSA issued the Notice, which alleged that conditions\nexist on Freeport’s Export Facility that pose a pipeline integrity risk to public safety, property, or\nthe environment, and proposed that Respondent 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 July 1, 2022, Freeport responded to the Notice requesting an informal consultation. An\ninformal consultation was held virtually on July 6, 2022. As a result of the informal consultation,\nPHMSA and Respondent (the Parties) agreed that settlement of this proceeding will avoid further\nadministrative proceedings or litigation of the Notice and that entry into this Consent Agreement\n(Agreement) is the most appropriate means of resolving the issues raised in the Notice and is\ngenerally in the public interest. Therefore, pursuant to 49 C.F.R. Part 190, without adjudication\nof any issue of fact or law, and upon consent and agreement of the Parties, PHMSA and Freeport\nagree as follows:\n1 See 49 C.F.R. § 191.3.\n\n\n\nI. General Provisions\n1. Respondent acknowledges that as the operator of the Export Facility, Respondent\nand the Export Facility are subject to the jurisdiction of the Federal pipeline safety laws, 49 U.S.C.\n§ 60101, et seq., and the regulations and administrative orders issued thereunder. For purposes of\nthis Agreement, Respondent acknowledges that it received proper notice of PHMSA’s action in\nthis proceeding and that the Notice states claims upon which relief may be granted pursuant to 49\nU.S.C. § 60101, et seq., and the regulations and orders issued thereunder.\n2. Respondent does not admit or deny any of the alleged integrity risks identified in\nthe Notice but agrees, for purposes of this Agreement, to address the alleged 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, a representative of PHMSA will\npresent it to the Associate Administrator for Pipeline Safety, recommending that the Associate\nAdministrator adopt the terms of this Agreement by issuing an administrative order (Consent Order)\nincorporating the terms of this Agreement. The terms of this Agreement constitute an offer of\nsettlement 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 Export\nFacility, Respondent will provide a copy of this Agreement to the prospective transferee at least\n30 days prior to such transfer and provide written notice of the transfer within 30 days after the\ntransfer 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\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. Upon issuance of the Consent Order, Respondent agrees to perform the Corrective\nMeasures set forth below.\n12. Return to Normal Operations. Freeport may not return its Export Facility to\nnormal operations until it receives written approval from the Director. Freeport may submit\nrequests to incrementally resume production as part of its process to return its Export Facility to\nnormal operations and the Director may approve accordingly. Until it receives the Director’s\nwritten approval, Freeport must provide weekly updates to the Director on the temperature and\ndensity of the LNG stored in the three LNG storage tanks. If Freeport must transfer LNG from\none storage tank to another or recirculate LNG to the loading dock, Freeport must notify the\nDirector within 24 hours after completion of the operation.\n13. Qualified Independent Third-Party. Freeport has submitted a proposed consultant\nand their qualifications to act as an independent third-party for the Director’s approval. Once\napproved, the third-party must perform the evaluations and assessments described in Corrective\nActions Nos. 16, 17, and 18.\n14. Root Cause Failure Analysis (RCFA). Within 90 days of issuance of the Order,\nFreeport must have its previously selected independent third-party (IFO Group) complete a RCFA\nand submit its RCFA report to the Director. The RCFA must be provided to Freeport and the\nDirector concurrently. The RCFA must document the decision-making process used in the\nanalysis and all factors contributing to the explosion and fire. The final report must include\nfindings, any lessons learned, and whether the findings and any lessons learned are applicable to\nthe entirety of Freeport’s operations.\n\n\n\n15. Assessment and Inspection. Within 60 days of issuance of the Order, Freeport\nmust submit to the Director for its approval a complete plan and schedule of inspection to\ndetermine the full extent of damage caused by the explosion and associated fire. The plan, at a\nminimum, must include an assessment of all piping, pipe supports, steel pipe racks, cables and\ncable tray, valves, instruments, fire and gas detection, fire suppression systems, and LNG\nimpoundment to detect any defects that would affect the integrity of the components resulting from\nthe explosion and fire. The Parties acknowledge that Freeport has already performed, and\ncontinues to perform, certain assessments within the facility. The plan submitted by Freeport\npursuant to this Corrective Action No. 15 must incorporate the work already performed. Freeport\nacknowledges that any assessments performed prior to the Director’s approval may require\nadditional evaluations to be performed in order to meet the requirements of the approved plan.\nFreeport must implement the approved plan according to the schedule therein and provide weekly\nwritten reports of findings to the Director until a final report is prepared and submitted.\n16. Operating Procedures. Within 30 days of the Director’s approval of an\nindependent third-party pursuant to Corrective Action No. 13, Freeport must submit to the Director\nfor review and written approval an evaluation of the LNG storage tanks operating modes including\ntransfer to the loading docks, recirculating LNG throughout the transfer area, and loading tanks\nfrom the liquefaction trains. The evaluation must be performed by the approved independent third-\nparty.\n17. Control System Procedures. Within 30 days of the Director’s approval of an\nindependent third-party pursuant to Corrective Action No. 13, Freeport must submit to the Director\nfor review and written approval an evaluation of inspection and testing procedures for all control\nsystems as covered in 49 C.F.R. § 193.2619. The evaluation must be performed by the approved\nindependent third-party. The evaluation will include a review of what standards Freeport follows\nfor inspection and testing, how Freeport’s procedures compare to the requirements in these\nstandards, and the methods of returning a control system to service after inspection and testing is\ncompleted.\n18. Assessment of Personnel Qualifications and Training. Within 60 days of the\nDirector’s approval of an independent third-party pursuant to Corrective Action No. 13, Freeport\nmust submit to the Director for review and written approval an assessment of the qualifications\nand training of operations, maintenance, and supervisory personnel. The assessment must be\nperformed by the approved independent third-party. The assessment must include a review of: (1)\nFreeport’s training program for all operations, maintenance, and supervisory personnel and\nwhether these personnel are capable of performing their assigned functions through Freeport’s\ntraining program; (2) any experience of the personnel related to their assigned operation or\nmaintenance function; and (3) records to ascertain whether there is acceptable performance on a\nproficiency test relevant to the assigned function. In addition, the assessment must determine\nwhether all supervisory personnel, up to initial managers, have a thorough knowledge of the\ninstructions for facility operations, including controls, functions, and operating procedures\nincluding LNG transfer procedures.\n19. Remedial Work Plan. Within 30 days following the completion of Corrective\nActions Nos. 14-18, Freeport must submit a Remedial Work Plan (RWP) to the Director for review\nand approval. Freeport may submit the RWP incrementally and the Director may approve the\nRWP accordingly without approving the entire RWP. Freeport must incorporate information\n\n\n\nobtained and recommendations from the RCFA, the evaluation of operating procedures, the\nevaluation of the testing and inspecting procedures of control system, an assessment and inspection\nof affected components, and the assessment of personnel qualifications and training results into\nthe RWP. Freeport may revise the RWP as necessary to incorporate new information obtained\nduring remedial activities as long as the revisions are first approved by the Director. Freeport must\nimplement the RWP as approved by the Director, including any revisions to the plan. The RWP\nmust include:\na. A procedure or process to determine if conditions similar to those contributing to\nthe explosion are likely to exist elsewhere in the facility.\nb. Develop a plan to test and inspect all pressure safety valves prior to returning to\nnormal operations pursuant to Correction Action No. 1.\nc. Define and implement long-term periodic verification measures to ensure\neffectiveness of testing and inspecting the control systems program and training for\nindividuals who conduct those activities.\nd. Include a proposed schedule to complete all repairs, inspections, and tests in order\nto resume normal operations.\ne. All inspection, test, and repair records that demonstrate the RWP was executed as\napproved by the Director.\n20. Monthly Reports. Freeport must submit monthly reports to the Director that: (1)\ninclude analysis of all available data and results of the testing and evaluations required by the\nOrder; (2) describe the progress of actions being undertaken; and (3) document all mandated\nactions and management of change plans to ensure that all procedural modifications are\nincorporated into Freeport procedures. The first report will be due 30 days from issuance of the\nOrder. The Director may extend the interval between reports if warranted.\n21. 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.\nIII. Review and Approval Process\n22. 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\n23. The Director and Respondent will informally attempt to resolve any disputes arising\nunder this Agreement, including, but not limited to, any decision of the Director. If Respondent\nand the Director are unable to informally resolve the dispute within 15 calendar days after\n\n\n\nRespondent invokes the dispute resolution provision in writing, Respondent may submit a written\nrequest for a determination resolving the dispute from the Associate Administrator for Pipeline\nSafety. The written request for a determination must be provided to the Director, counsel for\nSouthwest Region, and the Associate Administrator no later than 10 calendar days after the 15-\nday deadline for the informal resolution referenced in this paragraph. Along with its request,\nRespondent must provide the Associate Administrator with all information that Respondent\nbelieves is relevant to the dispute. If the request is submitted as provided herein, the Associate\nAdministrator will issue a final determination in writing. Determinations of the Associate\nAdministrator under this paragraph constitute final agency action. The existence of a dispute and\nPHMSA’s consideration of matters placed in dispute will not excuse, toll, or suspend any term or\ntimeframe for completion of any work to be performed under this Agreement during pendency of\nthe dispute resolution process except as agreed by the Director or the Associate Administrator in\nwriting.\nV. Enforcement\n24. 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\n25. 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\n26. 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.\nVIII. Modification\n\n\n\n27. 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\n28. 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.\nX. Ratification\n29. 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.\n30. The Parties hereby agree to all conditions and terms of this Agreement.\n[Signature Lines on Following Page]\n\n\n\nFor FREEPORT LNG DEVELOPMENT, L.P.:\n___________________________________\nSigmund L. Cornelius\nPresident, Freeport LNG Development, L.P.\n________________________\nDate\nFor PHMSA:\n___________________________________\nMary L. McDaniel, P.E.\nDirector, Southwest Region, Office of Pipeline Safety\n________________________\nDate\n\n42022051NOPSO_Notice of Proposed Safety Order_06302022_(22-245663)_text.pdf\n\nVIA E-MAIL TO: MSmith@freeportlng.com\nJune 30, 2022\nMichael Smith\nChairman and Chief Executive Officer\nFreeport LNG Development, LP\n333 Clay Street, Suite 5050\nHouston, Texas 77002\nCPF 4-2022-051-NOPSO\nDear Mr. Smith:\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\nFreeport LNG Development, LP take certain measures with respect to its liquefied natural facility\nlocated on Quintana Island, Texas. The options for responding are set forth in the Notice. Service\nof this Notice by electronic mail is deemed effective upon the date of transmission, or as otherwise\nprovided 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.\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. Sigmund Cornelius, President & Chief Operating Officer, Freeport LNG\nDevelopment LP, SCornelius@freeportlng.com\nMr. Michael Stephenson, Regulatory Compliance Manager, Freeport LNG Development,\nLP, MStephenson@freeportlng.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 )\nFreeport LNG Development, LP ) CPF No. 4-2022-051-NOPSO\n)\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), initiated an investigation of the\nsafety of Freeport LNG Development’s (Freeport) liquefied natural gas (LNG) export facility\nlocated Quintana Island, Texas following an incident that occurred on June 8, 2022.\nAt approximately 11:40 a.m. Central Daylight Time (CDT), an explosion and associated fire\noccurred in a pipe rack located near the LNG storage tanks at the Freeport’s LNG export facility.\nIt was reported, an estimated .12 million cubic feet of LNG released. There were no injuries or\nfatalities, nor were there any direct physical impacts offsite. PHMSA was notified by the National\nResponse Center (NRC) via NRC Report 1338144 at 12:36 p.m. CST of the reportable incident,\n1\nand PHMSA subsequently deployed personnel to Freeport’s LNG export facility to gain additional\nsituational awareness and initiate its investigation. The cause of the explosion and subsequent fire\nis currently under investigation.\nAs a result of the preliminary investigation, it appears conditions exist at Freeport’s LNG export\nfacility that pose an integrity risk to public safety, property, or the environment. Accordingly,\npursuant to 49 U.S.C. § 60117, PHMSA OPS issues this Notice of Proposed Safety Order (Notice),\nnotifying you of the preliminary findings of the investigation, and proposing that you take certain\nmeasures to ensure that the public, property, and the environment are protected from this integrity\nrisk.\nPreliminary Findings:\nThe preliminary findings of PHMSA’s ongoing investigation are as follows:\n1 See Incident as defined in 49 CFR §191.3.\n\n\n\n• Freeport’s LNG export facility is located on Quintana Island, Texas and includes three\nLNG storage tanks (Tanks 1, 2, and 3) and three parallel liquefaction trains (Trains 1, 2,\nand 3). Each train is capable of producing approximately 4.4 million metric tons per annum\nof LNG for export, which equates to a total liquefaction capacity of approximately 2.2\nbillion cubic feet per day of natural gas.\n• On June 8, 2022, at 11:40 a.m. CDT, an explosion and associated fire occurred in a pipe\nrack near the LNG storage tanks at Freeport’s LNG export facility. An estimated .12\nmillion cubic feet of LNG was reported to be released within the facility. There were no\ninjuries or fatalities, nor were there any direct physical impacts offsite.\n• Although the root cause of the failure has yet to be confirmed, preliminary evidence\nsuggests that an isolated pressure safety valve created an overpressure situation in 300 feet\nof vacuum insulated piping. The 300 feet of pipe was subjected to an overpressure situation\nwhich burst the pipe and allowed LNG and methane to be released into the facility. The\nsudden release of LNG and methane from the piping caused a subsequent explosion and\nfire that damaged piping and components in the plant. At PHMSA’s direction, Freeport\nengaged a third-party consultant, IFO Group, to conduct a root cause failure analysis\n(RCFA) of the explosion and subsequent fire and release of LNG.\n• The failure occurred in an 18-inch vacuum insulated pipe that is part of the LNG transfer\nsystem and was used to transfer LNG throughout the LNG storage tank area. The affected\nvacuum insulated piping is a part of Loop 2 located on an aboveground pipe rack within\nthe LNG storage area of the facility. Specifically, the affected vacuum insulated piping is\nlocated in a structural steel pipe rack supporting transfer piping, power cables, utility\npiping, and instrument cable trays. The affected piping is located 30 feet above ground\nlevel and is in the main artery pipe rack where transfer of material occurs between Tank 3\nand ship loading areas. The pipe racks consist of a series of transverse beams that run\nalong the length of the pipe system, spaced at uniform intervals.\n• The 18-inch vacuum insulated pipe consists of an inner and an outer stainless-steel pipe\nwith covering shroud. The inner pipe carries the cryogenic liquid. It is wrapped with\nmultiple layers of super insulation made of alternating layers of a heat barrier and a non-\nconductive spacer. This creates a space between the two pipes that is “pumped down”\nusing a vacuum pump to create a static vacuum shield. The vacuum shield protects\ncryogenic liquid from heat loss due to conduction, convection, and radiation.\n• In addition to the 18-inch vacuum insulated pipe being damaged by the explosion and\nassociated fire, much of the other piping in the area was also damaged and will require\nrepairs or replacement before LNG transfer operations can recommence.\n• Freeport’s LNG export facility is located within an ecologically sensitive area and is also\nnear recreational areas that include beaches and waterways used by the public.\nAdditionally, the facility is located on the Gulf Coast Intercoastal Water Way (GIWW).\nThe GIWW stretches from St. Marks, Florida to Brownsville, Texas, and is the nation's\n\n\n\nthird busiest waterway with the Texas portion handling over 58 percent of its traffic.2\n• The 2020 U.S. Census Bureau estimates Quintana Island, Texas had a population of 25\nresidents. Freeport, Texas, which is just across the GIWW from Quintana, has a population\nof approximately 10,000 residents. Being on the Gulf of Mexico, the area also attracts\nrecreational visitors and is close to Surfside Beach and Bryan Beach State Park.\n• On June 8, 2022, the U.S. Coast Guard (USCG) issued to Freeport a Captain of the Port\nOrder after the incident occurred. The order restricts all marine cargo operations until\nFreeport conducts a risk analysis on marine transfers, which must be approved by USCG\nbefore cargo operations can recommence.\nProposed Issuance of Safety Order:\nSection 60117(1) of Title 49, United States Code, provides for the issuance of a Safety Order\n(Order), after reasonable notice and the opportunity for a hearing, requiring corrective action,\nwhich may include physical inspection, testing, repair, replacement, or other action, as appropriate.\nThe basis for making the determination that a pipeline facility has a condition or conditions that\npose a pipeline integrity risk to public safety, property, or the environment is set forth both in the\nabove-referenced statute 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 temperature and pressure conditions required by the process, the characteristics\nof the geographical area where the LNG export facility is located including its proximity to an\necologically sensitive area, the circumstances that resulted in the explosion and associated fire,\nand the likelihood that the issues could affect the safety of other areas of the LNG facility, it\nappears that continued operation of Freeport’s LNG export facility without corrective measures\nmay pose an integrity risk to public safety, property, or the environment.\nAccordingly, PHMSA issues this Notice to notify Freeport of the proposed issuance of an Order\nand to propose that Freeport take measures specified herein to address the potential risks identified\nin the Preliminary Findings and other risks that may be determined as a result of the proposed\ncorrective measures.\nProposed Corrective Actions:\nPursuant to 49 U.S.C. § 60117(l) and 49 C.F.R. § 190.239, PHMSA proposes to issue to Freeport\nLNG a Safety Order incorporating the following remedial requirements with respect to its LNG\nexport facility located on Quintana Island, Texas:\n2 Texas Department of Transportation, Gulf Intracoastal Waterway, available at https://www.txdot.gov/inside-\ntxdot/division/transportation-\nplanning/waterway html#:~:text=The%20Gulf%20Intracoastal%20Waterway%20is,percent%20of%20the%20Water\nway's%20traffic; and Texas Department of Transportation, Gulf Intracoastal Waterway, Legislative Report – 83rd\nLegislature, available at https://static.tti.tamu.edu/tti.tamu.edu/documents/TTI-2013-12.pdf.\n\n\n\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. Return to Normal Operations. Freeport may not return its LNG export facility located on\nQuintana Island, Texas to normal operations until it receives written approval from the\nDirector. Until it receives the Director’s approval to return to normal operations, Freeport\nmust provide weekly updates to the Director on the temperature and density of the LNG\nstored in the three LNG storage tanks. If Freeport must transfer LNG from one storage\ntank to another or recirculate LNG to the loading dock, Freeport must notify the Director\nwithin 24 hours after completion of the operation.\n2. Qualified Independent Third-Party. Within 30 days of the issuance of the Order, Freeport\nmust select an independent third-party or -parties to perform the evaluations and\nassessments described in Corrective Actions Nos. 5, 6, and 7, and submit its selection along\nwith their associated qualifications to the Director for approval.\n3. Root Cause Failure Analysis. Within 60 days of issuance of the Order, Freeport must have\nits previously selected third-party consultant complete a RCFA and submit its RCFA report\nto the Director. The RCFA must be provided to Freeport and the Director concurrently.\nThe RCFA must document the decision-making process used in the analysis and all factors\ncontributing to the explosion and fire. The final report must include findings, any lessons\nlearned, and whether the findings and any lessons learned are applicable to the entirety of\nFreeport’s operations.\n4. Assessment and Inspection. Within 60 days of issuance of the Order, Freeport must submit\nto the Director a complete plan and schedule of inspection to determine the full extent of\ndamage caused by the explosion and associated fire. The plan must be submitted to the\nDirector for written approval prior to initiation. The plan, at a minimum, must include an\nassessment of all piping, pipe supports, steel pipe racks, cables and cable tray, valves,\ninstruments, fire and gas detection, fire suppression systems, and LNG impoundment to\ndetect any defects that would affect the integrity of the components resulting from the\nexplosion and fire. Freeport must implement the plan according to the schedule following\nthe Director’s approval and provide weekly written reports of findings to the Director until\na final report is prepared and submitted.\n5. Operating Procedures. Within 30 days of the Director’s approval of an independent third\nparty pursuant to Corrective Action No. 2, Freeport must submit to the Director for review\nand written approval an evaluation of the LNG storage tanks operating modes including\ntransfer to the loading docks, recirculating LNG throughout the transfer area, and loading\ntanks from the liquefaction trains. The evaluation must be performed by the approved\nindependent third party.\n6. Control System Procedures. Within 30 days of the Director’s approval of an independent\nthird party pursuant to Corrective Action No. 2, Freeport must submit to the Director for\nreview and written approval an evaluation of inspection and testing procedures for all\n\n\n\ncontrol systems. The evaluation must be performed by the approved independent third\nparty. The evaluation will include a review of what standards Freeport follows for\ninspection and testing, how Freeport’s procedures compare to the requirements in these\nstandards, and the methods of returning a control system to service after inspection and\ntesting is completed.\n7. Assessment of Personnel Qualifications and Training. Within 60 days of the Director’s\napproval of an independent third party pursuant to Corrective Action No. 2, Freeport must\nsubmit to the Director for review and written approval an assessment of the qualifications\nand training of operations, maintenance, and supervisory personnel. The assessment must\nbe performed by the approved independent third party. The assessment must include a\nreview of: (1) Freeport’s training program for all operations, maintenance, and supervisory\npersonnel and whether these personnel are capable of performing their assigned functions\nthrough Freeport’s training program; (2) any experience of the personnel related to their\nassigned operation or maintenance function; and (3) records to ascertain whether there is\nacceptable performance on a proficiency test relevant to the assigned function. In addition,\nthe assessment must determine whether ","truncated":true,"body_characters":47869}