{"operation":"document","citation":"CPF 42023060WL","title":"FREEPORT LNG DEVELOPMENT, L.P. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-10-16","effective_on":null,"summary":"CLOSED warning letter citing 192.605(a), 192.805(i).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023060wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023060wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023060wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42023060WL","body":"Warning Letter involving FREEPORT LNG DEVELOPMENT, L.P.. PHMSA's enforcement data identifies the cited regulations as 192.605(a),  192.805(i). The case was opened on 2023-10-16 and is reported as closed as of 2023-10-16. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42023060WL_Warning Letter_10162023_(23-264730).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023060WL/42023060WL_Warning%20Letter_10162023_(23-264730).pdf\n\n42023060WL_Warning Letter_10162023_(23-264730)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023060WL/42023060WL_Warning%20Letter_10162023_(23-264730)_text.pdf\n\n42023060WL_Warning Letter_10162023_(23-264730)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: MMallett@freeportlng.com\nOctober 16, 2023\nMark Mallett\nChief Operating Officer\nFreeport LNG Development, LP\n333 Clay Street\nHouston, Texas 77002\nCPF 4-2023-060-WL\nDear Mr. Mallett:\nFrom February 27, 2023, to April 4, 2023, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety, pursuant to Chapter 601 of 49 United\nStates Code (U.S.C.), inspected Freeport LNG Development, LP’s (FLNG) natural gas\ntransmission pipeline system in Freeport, Texas.\nAs a result of the inspection, it is alleged that FLNG has committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (C.F.R.). The items inspected\nand the probable violations are:\n1. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each\npipeline, a manual of written procedures for conducting operations and\nmaintenance activities and for emergency response. For transmission\nlines, the manual must also include procedures for handling abnormal\noperations. This manual must be reviewed and updated by the operator\nat intervals not exceeding 15 months, but at least once each calendar\nyear. This manual must be prepared before operations of a pipeline\nsystem commence. Appropriate parts of the manual must be kept at\nlocations where operations and maintenance activities are conducted.\n\n\n\nFLNG failed to follow its manual of written procedures for conducting operations and maintenance\nactivities in accordance with § 192.605(a). Specifically, FLNG failed to conduct an annual review\nin 2020 and 2021 of its procedures as required by section 3.1 of its Gas Pipeline Operations and\nMaintenance Manual, Revision No: 4, (12/4/19), FLNG-GOM-100.\nFLNG failed to provide documentation of the operations and maintenance manual annual reviews\nfor calendar years 2020 and 2021.\nTherefore, FLNG failed to follow its manual of written procedures for conducting operations and\nmaintenance activities in accordance with § 192.605(a).\n2. § 192.805 Qualification program.\nEach operator shall have and follow a written qualification\nprogram. The program shall include provisions to:\n(a) . . . .\n(i) After December 16, 2004, notify the Administrator or a state\nagency participating under 49 U.S.C. Chapter 601 if an operator\nsignificantly modifies the program after the administrator or state\nagency has verified that it complies with this section. Notifications to\nPHMSA must be submitted in accordance with § 192.18.\nFLNG failed to follow its written qualification program in accordance with § 192.805.\nSpecifically, FLNG failed to notify the Administrator of significant modifications to its Operator\nQualification Program (OQ Program) (Rev. 1, 1/18/2023), as required by section 4.3 of that\nprocedure and § 192.805(i).\nFLNG’s OQ Program is a wholesale change from the previous version (Document No.: FLNG-\nOQM-100, Rev. 3, 10/23/2012). FLNG made changes to many, if not all, sections in the OQ\nProgram. The significant modifications include a new table of contents, revised narratives for\nmany sections, new task numbers and names, and a new program name and number (compare\nDOCUMENT NO. FLNG-OPS-PRC-9001-064.0001 with DOC ALT NO. FLNG-OQM-100).\nFor instance, Task 3 Inspect Cathodic Protection Rectifiers in the previous OQ program is now\nTask 0101 Inspect Rectifier and Obtain Readings in the current OQ Program. FLNG also restarted\nthe revision number in 2021, reflecting the magnitude of changes. As stated in section 4.3, a\nwholesale change is a significant modification that requires PHMSA notification.\nTherefore, FLNG failed to follow its written qualification program in accordance with § 192.805.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a related\nseries of violations. For violation occurring on or after March 21, 2022 and before January 6,\n2023, the maximum penalty may not exceed $239,142 per violation per day the violation persists,\nup to a maximum of $2,391,142 for a related series of violations. For violation occurring on or\nafter May 3, 2021 and before March 21, 2022, the maximum penalty may not exceed $225,134\nper violation per day the violation persists, up to a maximum of $2,251,334 for a related series of\n\n\n\nviolations. For violation occurring on or after January 11, 2021 and before May 3, 2021, the\nmaximum penalty may not exceed $222,504 per violation per day the violation persists, up to a\nmaximum of $2,225,034 for a related series of violations. For violation occurring on or after July\n31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per\nviolation per day the violation persists, up to a maximum of $2,186,465 for a related series of\nviolations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the\nmaximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to\nexceed $2,132,679. For violation occurring on or after November 2, 2015 and before November\n27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum\npenalty not to exceed $2,090,022.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the item(s) identified in this letter. Failure to do so will result in\nFreeport LNG Development, L.P. being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 4-2023-060-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. § 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe the\nredacted information qualifies for confidential treatment under 5 U.S.C. § 552(b).\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Michael Stephenson, Regulatory Compliance Manager, MStephenson@freeportlng.com\nDavid Pesses, Sr. Compliance Specialist, DPesses@freeportlng.com","truncated":false,"body_characters":7351}