{"operation":"document","citation":"CPF 42023059NOA","title":"FREEPORT LNG DEVELOPMENT, L.P. — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-11-02","effective_on":null,"summary":"CLOSED notice of amendment citing 192.493, 192.605(b)(2), 192.615(a)(12).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023059noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023059noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023059noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42023059NOA","body":"Notice of Amendment involving FREEPORT LNG DEVELOPMENT, L.P.. PHMSA's enforcement data identifies the cited regulations as 192.493,  192.605(b)(2),  192.615(a)(12). The case was opened on 2023-11-02 and is reported as closed as of 2024-03-20. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42023059NOA_Closure Letter_03182024_(23-264730).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023059NOA/42023059NOA_Closure%20Letter_03182024_(23-264730).pdf\n\n42023059NOA_Closure Letter_03182024_(23-264730)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023059NOA/42023059NOA_Closure%20Letter_03182024_(23-264730)_text.pdf\n\n42023059NOA_Notice of Amendment_11022023_(23-264730).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023059NOA/42023059NOA_Notice%20of%20Amendment_11022023_(23-264730).pdf\n\n42023059NOA_Notice of Amendment_11022023_(23-264730)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023059NOA/42023059NOA_Notice%20of%20Amendment_11022023_(23-264730)_text.pdf\n\n42023059NOA_Operator Response to Notice_11302023_(23-264730).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023059NOA/42023059NOA_Operator%20Response%20to%20Notice_11302023_(23-264730).pdf\n\n42023059NOA_Notice of Amendment_11022023_(23-264730)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: mmallet@freeportlng.com\nNovember 2, 2023\nMark Mallett\nChief Operating Officer\nFreeport LNG Development, LP\n333 Clay Street\nHouston, Texas 77002\nCPF 4-2023-059-NOA\nDear Mr. Mallett:\nFrom February 27 to April 4, 2023, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nFreeport LNG Development, LP’s (FLNG) integrity management plan and maintenance and\noperations procedures in Freeport, Texas.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nFLNG’s plans and/or procedures as described below:\n1. § 192.605 Procedural manual for operations, maintenance, and\nemergencies.\n(a) . . . .\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following,\nif applicable, to provide safety during maintenance and operations.\n(1) . . . .\n(2) Controlling corrosion in accordance with the operations and\nmaintenance requirements of Subpart I of this part.\n\n\n\n§ 192.493 In-line inspection of pipelines.\nWhen conducting in-line inspections of pipelines required by this\npart, an operator must comply with API STD 1163, ANSI/ASNT ILI -\nPQ, and NACE SP0102, (incorporated by reference, see § 192.7).\nAssessments may be conducted using tethered or remotely controlled\ntools, not explicitly discussed in NACE SP0102, provided they comply\nwith those sections of NACE SP0102 that are applicable.\nFLNG’s written procedures for controlling corrosion were inadequate to assure the safe operation\nof a pipeline facility in accordance with § 192.605(b)(2). Specifically, FLNG’s procedure for\nconducting in-line inspections (ILI), In-Line Inspection and Analysis, PPL-OPS-PRC-9001-\n071.0001 (Revision: 0, dated April 28, 2021), failed to include ILI survey acceptance criteria\nrequired by NACE SP0102, section 5.1.5 Survey-acceptance criteria in accordance with § 192.493.\nSection 2.2.1.2 of FLNG’s In-Line Inspection and Analysis procedure stated that FLNG will rerun\nthe ILI tool if the results are not acceptable, as determined by the ILI Project Manager. However,\nFLNG’s procedure does not include the requirement to develop and agree to a set of survey-\nacceptance criteria that define when a rerun survey is required in accordance with section 5.1.5 of\nNACE SP0102.\nTherefore, FLNG’s written procedures for controlling corrosion were inadequate to assure the safe\noperation of a pipeline facility in accordance with § 192.605(b)(2). FLNG must amend its ILI and\nAnalysis procedure to require development of ILI survey acceptance criteria as required by NACE\nSP0102.\n2. § 192.615 Emergency plans.\n(a) Each operator shall establish written procedures to minimize\nthe hazard resulting from a gas pipeline emergency. At a minimum, the\nprocedures must provide for the following:\n(1) . . . .\n(12) Each operator must develop written rupture identification\nprocedures to evaluate and identify whether a notification of potential\nrupture, as defined in § 192.3, is an actual rupture event or a non-\nrupture event. These procedures must, at a minimum, specify the\nsources of information, operational factors, and other criteria that\noperator personnel use to evaluate a notification of potential rupture\nand identify an actual rupture. For operators installing valves in\naccordance with § 192.179(e), § 192.179(f), or that are subject to the\nrequirements in § 192.634, those procedures must provide for rupture\nidentification as soon as practicable.\n\n\n\nFLNG’s written procedure to minimize the hazard resulting from a gas pipeline emergency was\ninadequate to assure safe operation of a pipeline facility in accordance with § 192.615(a)(12).\nSpecifically, FLNG’s procedure Freeport LNG Facilities – Integrated Contingency Plan\n(Revision: 0, dated August 2022) failed to include criteria to evaluate and identify whether a\nnotification of potential rupture, as defined in § 192.3, is an actual rupture event or a non-rupture\nevent in accordance with § 192.615(a)(12).\nFLNG failed to include written rupture identification procedures in its Integrated Contingency\nPlan. The procedure failed to specify the sources of information, operational factors, and other\ncriteria that operator personnel use to evaluate a notification of a potential rupture and identify an\nactual rupture.\nTherefore, FLNG’s written procedure to minimize the hazard resulting from a gas pipeline\nemergency was inadequate to assure safe operation of a pipeline facility in accordance with §\n192.615(a)(12). FLNG must revise its procedure as specified above.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in Enforcement\nProceedings.\nPlease refer to this document and note the response options. Be advised that all material you\nsubmit in response to this enforcement action is subject to being made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. § 552(b), along with the complete original document you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. § 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under § 190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice\nand authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice\nwithout further notice to you and to issue an Order Directing Amendment. If your plans or\nprocedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans\nor procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this\nNotice, we propose that you submit your amended procedures to my office within 30 days of\nreceipt of this Notice. This period may be extended by written request for good cause. Once the\ninadequacies identified herein have been addressed in your amended procedures, this enforcement\naction will be closed.\n\n\n\nIt is requested (not mandated) that Freeport LNG Development, LP, maintain documentation of\nthe safety improvement costs associated with fulfilling this Notice of Amendment\n(preparation/revision of plans, procedures) and submit the total to Bryan Lethcoe, Director,\nSouthwest, Pipeline and Hazardous Materials Safety Administration. In correspondence\nconcerning this matter, please refer to CPF 4-2023-059-NOA and, for each document you submit,\nplease provide a copy in electronic format whenever possible.\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region, Office Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\ncc: Michael Stephenson, Regulatory Compliance Manager, MStephenson@freeportlng.com\nDavid Pesses, Sr. Compliance Specialist, DPesses@freeportlng.com\n\n42023059NOA_Closure Letter_03182024_(23-264730)_text.pdf\n\nVIA ELECTRONIC MAIL TO: mmoppert@freeportlng.com\nMarch 18, 2024\nMichael Moppert\nChief Operating Officer\nFreeport LNG Development, L.P.\n333 Clay Street\nHouston, Texas 77002\nCPF 4-2023-059-NOA\nDear Mr. Moppert:\nOn November 02, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued the Notice of Ammendment (Notice) to Freeport LNG Development, L.P. (FLNG) requiring\namendments of its integrity management plan and maintenance and operations procedures. On\nFebruary 2, 2024 FLNG submitted its amended procedures, and it appears that the inadequacy\noutlined in this Notice have been corrected.\nAccordingly, this case is now closed, and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation.\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Mr. Mike Stephenson, Director, Regulatory Affairs, MStephenson@freeportlng.com\nMr. David Pesses, Senior Regulatory Compliance Specialist, DPesses@freeportlng.com","truncated":false,"body_characters":9811}