# FREEPORT LNG DEVELOPMENT, L.P. — Safety Order

- **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:** Not available
- **summary:** CLOSED safety order.
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- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-42022051nopso.md
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- **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.

Official case documents:

42022051NOPSO_Closure Letter_07032025_(22-245663).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022051NOPSO/42022051NOPSO_Closure%20Letter_07032025_(22-245663).pdf

42022051NOPSO_Closure Letter_07032025_(22-245663)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022051NOPSO/42022051NOPSO_Closure%20Letter_07032025_(22-245663)_text.pdf

42022051NOPSO_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

42022051NOPSO_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

42022051NOPSO_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

42022051NOPSO_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

42022051NOPSO_Consent Agreement and Order_08032022_(22-245663)_text.pdf

August 3, 2022
VIA ELECTRONIC MAIL TO: MSmith@freeportlng.com
Mr. Michael Smith
Chairman and Chief Executive Officer
Freeport LNG Development, LP
333 Clay Street, Suite 5050
Houston, Texas 77002
Re: CPF 4-2022-051-NOPSO
Dear Mr. Smith:
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
Freeport LNG Development, LP, which was executed on August 2, 2022. 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, P.E., Director, Southwest Region, Office of Pipeline Safety, PHMSA
Mr. Michael Stephenson, Regulatory Compliance Manager, Freeport LNG Development,
LP, MStephenson@freeportlng.com
Mr. Mark Mallett, P.E, Vice President of Operations and Engineering, Freeport LNG
Development, LP, MMallett@freeportlng.com



Mr. Shaw Ottis, Vice President, General Counsel & Secretary, Freeport LNG
Development, LP, SOttis@freeportlng.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 )
Freeport LNG Development, LP, ) CPF No. 4-2022-051-NOPSO
)
)
)
Respondent. )
____________________________________)
CONSENT ORDER
By letter dated June 30, 2022, the Pipeline and Hazardous Materials Safety Administration
(PHMSA), Office of Pipeline Safety, issued a Notice of Proposed Safety Order (Notice) to
Freeport LNG Development, LP.
In accordance with 49 C.F.R. § 190.239, the Notice alleged that conditions exist on
Respondent’s liquefied natural gas export facility located on Quintana Island, Texas, that posed 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 3, 2022
Alan K. Mayberry Date
Associate Administrator
for Pipeline Safety, PHMSA



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
_______________________________________
In the Matter of )
Freeport LNG Development, LP, ) CPF No. 4-2022-051-NOPSO
)
)
)
Respondent. )
____________________________________)
CONSENT AGREEMENT
On June 30, 2022, 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 Freeport LNG Development, LP (Freeport or Respondent). The
Notice was issued after a reportable incident1 occurred on June 8, 2022, at Freeport’s liquefied
natural gas (LNG) export facility (Export Facility) located on Quintana Island, Texas.
At approximately 11:40 a.m. Central Daylight Time (CDT), an explosion and associated fire
occurred in a pipe rack located near the LNG storage tanks at Freeport’s Export Facility. It was
reported an estimated 0.12 million cubic feet of LNG was released. There were no injuries or
fatalities, nor were there any direct physical impacts offsite. Freeport notified PHMSA of the
incident via the National Response Center (NRC) (NRC Report 1338144) at 12:36 p.m. CDT.
PHMSA subsequently deployed personnel to Freeport’s Export Facility to gain additional
situational awareness and initiate its investigation. The cause of the explosion and subsequent fire
is currently under investigation.
As a result of a preliminary investigation, PHMSA issued the Notice, which alleged that conditions
exist on Freeport’s Export 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 July 1, 2022, Freeport responded to the Notice requesting an informal consultation. An
informal consultation was held virtually on July 6, 2022. 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 Freeport
agree as follows:
1 See 49 C.F.R. § 191.3.



I. General Provisions
1. Respondent acknowledges that as the operator of the Export Facility, Respondent
and the Export 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 does not admit or deny any of the alleged integrity risks identified in
the Notice but agrees, for purposes of this Agreement, to address the alleged 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, a representative of PHMSA 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 Export
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 after the
transfer 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.



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. Upon issuance of the Consent Order, Respondent agrees to perform the Corrective
Measures set forth below.
12. Return to Normal Operations. Freeport may not return its Export Facility to
normal operations until it receives written approval from the Director. Freeport may submit
requests to incrementally resume production as part of its process to return its Export Facility to
normal operations and the Director may approve accordingly. Until it receives the Director’s
written approval, Freeport must provide weekly updates to the Director on the temperature and
density of the LNG stored in the three LNG storage tanks. If Freeport must transfer LNG from
one storage tank to another or recirculate LNG to the loading dock, Freeport must notify the
Director within 24 hours after completion of the operation.
13. Qualified Independent Third-Party. Freeport has submitted a proposed consultant
and their qualifications to act as an independent third-party for the Director’s approval. Once
approved, the third-party must perform the evaluations and assessments described in Corrective
Actions Nos. 16, 17, and 18.
14. Root Cause Failure Analysis (RCFA). Within 90 days of issuance of the Order,
Freeport must have its previously selected independent third-party (IFO Group) complete a RCFA
and submit its RCFA report to the Director. The RCFA must be provided to Freeport and the
Director concurrently. The RCFA must document the decision-making process used in the
analysis and all factors contributing to the explosion and fire. The final report must include
findings, any lessons learned, and whether the findings and any lessons learned are applicable to
the entirety of Freeport’s operations.



15. Assessment and Inspection. Within 60 days of issuance of the Order, Freeport
must submit to the Director for its approval a complete plan and schedule of inspection to
determine the full extent of damage caused by the explosion and associated fire. The plan, at a
minimum, must include an assessment of all piping, pipe supports, steel pipe racks, cables and
cable tray, valves, instruments, fire and gas detection, fire suppression systems, and LNG
impoundment to detect any defects that would affect the integrity of the components resulting from
the explosion and fire. The Parties acknowledge that Freeport has already performed, and
continues to perform, certain assessments within the facility. The plan submitted by Freeport
pursuant to this Corrective Action No. 15 must incorporate the work already performed. Freeport
acknowledges that any assessments performed prior to the Director’s approval may require
additional evaluations to be performed in order to meet the requirements of the approved plan.
Freeport must implement the approved plan according to the schedule therein and provide weekly
written reports of findings to the Director until a final report is prepared and submitted.
16. Operating Procedures. Within 30 days of the Director’s approval of an
independent third-party pursuant to Corrective Action No. 13, Freeport must submit to the Director
for review and written approval an evaluation of the LNG storage tanks operating modes including
transfer to the loading docks, recirculating LNG throughout the transfer area, and loading tanks
from the liquefaction trains. The evaluation must be performed by the approved independent third-
party.
17. Control System Procedures. Within 30 days of the Director’s approval of an
independent third-party pursuant to Corrective Action No. 13, Freeport must submit to the Director
for review and written approval an evaluation of inspection and testing procedures for all control
systems as covered in 49 C.F.R. § 193.2619. The evaluation must be performed by the approved
independent third-party. The evaluation will include a review of what standards Freeport follows
for inspection and testing, how Freeport’s procedures compare to the requirements in these
standards, and the methods of returning a control system to service after inspection and testing is
completed.
18. Assessment of Personnel Qualifications and Training. Within 60 days of the
Director’s approval of an independent third-party pursuant to Corrective Action No. 13, Freeport
must submit to the Director for review and written approval an assessment of the qualifications
and training of operations, maintenance, and supervisory personnel. The assessment must be
performed by the approved independent third-party. The assessment must include a review of: (1)
Freeport’s training program for all operations, maintenance, and supervisory personnel and
whether these personnel are capable of performing their assigned functions through Freeport’s
training program; (2) any experience of the personnel related to their assigned operation or
maintenance function; and (3) records to ascertain whether there is acceptable performance on a
proficiency test relevant to the assigned function. In addition, the assessment must determine
whether all supervisory personnel, up to initial managers, have a thorough knowledge of the
instructions for facility operations, including controls, functions, and operating procedures
including LNG transfer procedures.
19. Remedial Work Plan. Within 30 days following the completion of Corrective
Actions Nos. 14-18, Freeport must submit a Remedial Work Plan (RWP) to the Director for review
and approval. Freeport may submit the RWP incrementally and the Director may approve the
RWP accordingly without approving the entire RWP. Freeport must incorporate information



obtained and recommendations from the RCFA, the evaluation of operating procedures, the
evaluation of the testing and inspecting procedures of control system, an assessment and inspection
of affected components, and the assessment of personnel qualifications and training results into
the RWP. Freeport may revise the RWP as necessary to incorporate new information obtained
during remedial activities as long as the revisions are first approved by the Director. Freeport must
implement the RWP as approved by the Director, including any revisions to the plan. The RWP
must include:
a. A procedure or process to determine if conditions similar to those contributing to
the explosion are likely to exist elsewhere in the facility.
b. Develop a plan to test and inspect all pressure safety valves prior to returning to
normal operations pursuant to Correction Action No. 1.
c. Define and implement long-term periodic verification measures to ensure
effectiveness of testing and inspecting the control systems program and training for
individuals who conduct those activities.
d. Include a proposed schedule to complete all repairs, inspections, and tests in order
to resume normal operations.
e. All inspection, test, and repair records that demonstrate the RWP was executed as
approved by the Director.
20. Monthly Reports. Freeport must submit monthly reports to the Director that: (1)
include analysis of all available data and results of the testing and evaluations required by the
Order; (2) describe the progress of actions being undertaken; and (3) document all mandated
actions and management of change plans to ensure that all procedural modifications are
incorporated into Freeport procedures. The first report will be due 30 days from issuance of the
Order. The Director may extend the interval between reports if warranted.
21. 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.
III. Review and Approval Process
22. 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
23. The Director and Respondent will informally attempt to resolve any disputes arising
under this Agreement, including, but not limited to, any decision of the Director. If Respondent
and the Director are unable to informally resolve the dispute within 15 calendar days after



Respondent invokes the dispute resolution provision in writing, Respondent may submit a written
request for a determination resolving the dispute from the Associate Administrator for Pipeline
Safety. The written request for a determination must be provided to the Director, counsel for
Southwest Region, and the Associate Administrator no later than 10 calendar days after the 15-
day deadline for the informal resolution referenced in this paragraph. Along with its request,
Respondent must provide the Associate Administrator with 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. Determinations of the Associate
Administrator under this paragraph constitute final agency action. The existence of a dispute and
PHMSA’s consideration 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
24. 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
25. 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
26. 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.
VIII. Modification



27. 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
28. 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.
X. Ratification
29. 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.
30. The Parties hereby agree to all conditions and terms of this Agreement.
[Signature Lines on Following Page]



For FREEPORT LNG DEVELOPMENT, L.P.:
___________________________________
Sigmund L. Cornelius
President, Freeport LNG Development, L.P.
________________________
Date
For PHMSA:
___________________________________
Mary L. McDaniel, P.E.
Director, Southwest Region, Office of Pipeline Safety
________________________
Date

42022051NOPSO_Notice of Proposed Safety Order_06302022_(22-245663)_text.pdf

VIA E-MAIL TO: MSmith@freeportlng.com
June 30, 2022
Michael Smith
Chairman and Chief Executive Officer
Freeport LNG Development, LP
333 Clay Street, Suite 5050
Houston, Texas 77002
CPF 4-2022-051-NOPSO
Dear Mr. Smith:
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
Freeport LNG Development, LP take certain measures with respect to its liquefied natural facility
located on Quintana Island, Texas. The options for responding are set forth in the Notice. Service
of this Notice by electronic mail is deemed effective upon the date of transmission, or as otherwise
provided 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.
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. Sigmund Cornelius, President & Chief Operating Officer, Freeport LNG
Development LP, SCornelius@freeportlng.com
Mr. Michael Stephenson, Regulatory Compliance Manager, Freeport LNG Development,
LP, MStephenson@freeportlng.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 )
Freeport LNG Development, LP ) CPF No. 4-2022-051-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), initiated an investigation of the
safety of Freeport LNG Development’s (Freeport) liquefied natural gas (LNG) export facility
located Quintana Island, Texas following an incident that occurred on June 8, 2022.
At approximately 11:40 a.m. Central Daylight Time (CDT), an explosion and associated fire
occurred in a pipe rack located near the LNG storage tanks at the Freeport’s LNG export facility.
It was reported, an estimated .12 million cubic feet of LNG released. There were no injuries or
fatalities, nor were there any direct physical impacts offsite. PHMSA was notified by the National
Response Center (NRC) via NRC Report 1338144 at 12:36 p.m. CST of the reportable incident,
1
and PHMSA subsequently deployed personnel to Freeport’s LNG export facility to gain additional
situational awareness and initiate its investigation. The cause of the explosion and subsequent fire
is currently under investigation.
As a result of the preliminary investigation, it appears conditions exist at Freeport’s LNG export
facility that pose an integrity risk to public safety, property, or the environment. Accordingly,
pursuant to 49 U.S.C. § 60117, PHMSA OPS issues this Notice of Proposed Safety Order (Notice),
notifying you of the preliminary findings of the investigation, and proposing that you take certain
measures to ensure that the public, property, and the environment are protected from this integrity
risk.
Preliminary Findings:
The preliminary findings of PHMSA’s ongoing investigation are as follows:
1 See Incident as defined in 49 CFR §191.3.



• Freeport’s LNG export facility is located on Quintana Island, Texas and includes three
LNG storage tanks (Tanks 1, 2, and 3) and three parallel liquefaction trains (Trains 1, 2,
and 3). Each train is capable of producing approximately 4.4 million metric tons per annum
of LNG for export, which equates to a total liquefaction capacity of approximately 2.2
billion cubic feet per day of natural gas.
• On June 8, 2022, at 11:40 a.m. CDT, an explosion and associated fire occurred in a pipe
rack near the LNG storage tanks at Freeport’s LNG export facility. An estimated .12
million cubic feet of LNG was reported to be released within the facility. There were no
injuries or fatalities, nor were there any direct physical impacts offsite.
• Although the root cause of the failure has yet to be confirmed, preliminary evidence
suggests that an isolated pressure safety valve created an overpressure situation in 300 feet
of vacuum insulated piping. The 300 feet of pipe was subjected to an overpressure situation
which burst the pipe and allowed LNG and methane to be released into the facility. The
sudden release of LNG and methane from the piping caused a subsequent explosion and
fire that damaged piping and components in the plant. At PHMSA’s direction, Freeport
engaged a third-party consultant, IFO Group, to conduct a root cause failure analysis
(RCFA) of the explosion and subsequent fire and release of LNG.
• The failure occurred in an 18-inch vacuum insulated pipe that is part of the LNG transfer
system and was used to transfer LNG throughout the LNG storage tank area. The affected
vacuum insulated piping is a part of Loop 2 located on an aboveground pipe rack within
the LNG storage area of the facility. Specifically, the affected vacuum insulated piping is
located in a structural steel pipe rack supporting transfer piping, power cables, utility
piping, and instrument cable trays. The affected piping is located 30 feet above ground
level and is in the main artery pipe rack where transfer of material occurs between Tank 3
and ship loading areas. The pipe racks consist of a series of transverse beams that run
along the length of the pipe system, spaced at uniform intervals.
• The 18-inch vacuum insulated pipe consists of an inner and an outer stainless-steel pipe
with covering shroud. The inner pipe carries the cryogenic liquid. It is wrapped with
multiple layers of super insulation made of alternating layers of a heat barrier and a non-
conductive spacer. This creates a space between the two pipes that is “pumped down”
using a vacuum pump to create a static vacuum shield. The vacuum shield protects
cryogenic liquid from heat loss due to conduction, convection, and radiation.
• In addition to the 18-inch vacuum insulated pipe being damaged by the explosion and
associated fire, much of the other piping in the area was also damaged and will require
repairs or replacement before LNG transfer operations can recommence.
• Freeport’s LNG export facility is located within an ecologically sensitive area and is also
near recreational areas that include beaches and waterways used by the public.
Additionally, the facility is located on the Gulf Coast Intercoastal Water Way (GIWW).
The GIWW stretches from St. Marks, Florida to Brownsville, Texas, and is the nation's



third busiest waterway with the Texas portion handling over 58 percent of its traffic.2
• The 2020 U.S. Census Bureau estimates Quintana Island, Texas had a population of 25
residents. Freeport, Texas, which is just across the GIWW from Quintana, has a population
of approximately 10,000 residents. Being on the Gulf of Mexico, the area also attracts
recreational visitors and is close to Surfside Beach and Bryan Beach State Park.
• On June 8, 2022, the U.S. Coast Guard (USCG) issued to Freeport a Captain of the Port
Order after the incident occurred. The order restricts all marine cargo operations until
Freeport conducts a risk analysis on marine transfers, which must be approved by USCG
before cargo operations can recommence.
Proposed Issuance of Safety Order:
Section 60117(1) of Title 49, United States Code, provides for the issuance of a Safety Order
(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 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 temperature and pressure conditions required by the process, the characteristics
of the geographical area where the LNG export facility is located including its proximity to an
ecologically sensitive area, the circumstances that resulted in the explosion and associated fire,
and the likelihood that the issues could affect the safety of other areas of the LNG facility, it
appears that continued operation of Freeport’s LNG export facility without corrective measures
may pose an integrity risk to public safety, property, or the environment.
Accordingly, PHMSA issues this Notice to notify Freeport of the proposed issuance of an Order
and to propose that Freeport 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 Freeport
LNG a Safety Order incorporating the following remedial requirements with respect to its LNG
export facility located on Quintana Island, Texas:
2 Texas Department of Transportation, Gulf Intracoastal Waterway, available at https://www.txdot.gov/inside-
txdot/division/transportation-
planning/waterway html#:~:text=The%20Gulf%20Intracoastal%20Waterway%20is,percent%20of%20the%20Water
way's%20traffic; and Texas Department of Transportation, Gulf Intracoastal Waterway, Legislative Report – 83rd
Legislature, available at https://static.tti.tamu.edu/tti.tamu.edu/documents/TTI-2013-12.pdf.



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. Return to Normal Operations. Freeport may not return its LNG export facility located on
Quintana Island, Texas to normal operations until it receives written approval from the
Director. Until it receives the Director’s approval to return to normal operations, Freeport
must provide weekly updates to the Director on the temperature and density of the LNG
stored in the three LNG storage tanks. If Freeport must transfer LNG from one storage
tank to another or recirculate LNG to the loading dock, Freeport must notify the Director
within 24 hours after completion of the operation.
2. Qualified Independent Third-Party. Within 30 days of the issuance of the Order, Freeport
must select an independent third-party or -parties to perform the evaluations and
assessments described in Corrective Actions Nos. 5, 6, and 7, and submit its selection along
with their associated qualifications to the Director for approval.
3. Root Cause Failure Analysis. Within 60 days of issuance of the Order, Freeport must have
its previously selected third-party consultant complete a RCFA and submit its RCFA report
to the Director. The RCFA must be provided to Freeport and the Director concurrently.
The RCFA must document the decision-making process used in the analysis and all factors
contributing to the explosion and fire. The final report must include findings, any lessons
learned, and whether the findings and any lessons learned are applicable to the entirety of
Freeport’s operations.
4. Assessment and Inspection. Within 60 days of issuance of the Order, Freeport must submit
to the Director a complete plan and schedule of inspection to determine the full extent of
damage caused by the explosion and associated fire. The plan must be submitted to the
Director for written approval prior to initiation. The plan, at a minimum, must include an
assessment of all piping, pipe supports, steel pipe racks, cables and cable tray, valves,
instruments, fire and gas detection, fire suppression systems, and LNG impoundment to
detect any defects that would affect the integrity of the components resulting from the
explosion and fire. Freeport must implement the plan according to the schedule following
the Director’s approval and provide weekly written reports of findings to the Director until
a final report is prepared and submitted.
5. Operating Procedures. Within 30 days of the Director’s approval of an independent third
party pursuant to Corrective Action No. 2, Freeport must submit to the Director for review
and written approval an evaluation of the LNG storage tanks operating modes including
transfer to the loading docks, recirculating LNG throughout the transfer area, and loading
tanks from the liquefaction trains. The evaluation must be performed by the approved
independent third party.
6. Control System Procedures. Within 30 days of the Director’s approval of an independent
third party pursuant to Corrective Action No. 2, Freeport must submit to the Director for
review and written approval an evaluation of inspection and testing procedures for all



control systems. The evaluation must be performed by the approved independent third
party. The evaluation will include a review of what standards Freeport follows for
inspection and testing, how Freeport’s procedures compare to the requirements in these
standards, and the methods of returning a control system to service after inspection and
testing is completed.
7. Assessment of Personnel Qualifications and Training. Within 60 days of the Director’s
approval of an independent third party pursuant to Corrective Action No. 2, Freeport must
submit to the Director for review and written approval an assessment of the qualifications
and training of operations, maintenance, and supervisory personnel. The assessment must
be performed by the approved independent third party. The assessment must include a
review of: (1) Freeport’s training program for all operations, maintenance, and supervisory
personnel and whether these personnel are capable of performing their assigned functions
through Freeport’s training program; (2) any experience of the personnel related to their
assigned operation or maintenance function; and (3) records to ascertain whether there is
acceptable performance on a proficiency test relevant to the assigned function. In addition,
the assessment must determine whether 
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