COVE POINT LNG, LP — Safety Order

party submissionOfficial PDF42025010NOPSO_Operator Request for Informal Consultation and Request for Hearing_10162025_(25-353455).pdf#

42025010NOPSO_Consent Agreement and Order_01282026_(25-353455)_text.pdf, page 1Official PDFU.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Avenue, SE Washington, DC 20590 January 28, 2026 VIA ELECTRONIC MAIL TO: paul.ruppert@bhegts.com Paul Ruppert President BHE GT&S, LLC 6603 West Broad Street Richmond, VA 23200 CPF No. 4-2025-010-NOPSO Dear Mr. Ruppert: Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Cove Point LNG, LP, which was executed on January 26, 2026. Service of the Consent Order and Consent Agreement by electronic mail is deemed effective upon the date of transmission and acknowledgement of receipt, or as otherwise provided under 49 CFR § 190.5. Thank you for your cooperation in this matter. Sincerely, Linda Daugherty Acting Associate Administrator for Pipeline Safety Enclosure: Consent Order and Consent Agreement cc: Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety, PHMSA Eric Taylor, Director of Engineering Services Pipeline Integrity, BHE GT&S, Eric.Taylor@bhegts.com Tate Era, LNG Production Coordinator, Cove Point LNG, Tate.Era@bhegts.com Brianne Kurdock, Counsel for Cove Point LNG, Kurdock, BKurdock@babstcalland.com Melanie Lampton, Counsel for Cove Point LNG, MLampton@babstcalland.com Andrew Kohout, Director, Division of LNG Facility Reviews and Inspections, FERC, andrew.kohout@ferc.gov CONFIRMATION OF RECEIPT REQUESTED#

42025010NOPSO_Consent Agreement and Order_01282026_(25-353455)_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) Cove Point LNG, LP, ) CPF No. 4-2025-010-NOPSO ) ) ) ) Respondent. ) ____________________________________) CONSENT ORDER By letter dated October 14, 2025 the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Proposed Safety Order (Notice) to Cove Point LNG, LP (Cove Point or Respondent). In accordance with 49 CFR § 190.239, the Notice alleged that conditions exist at Cove Point’s liquefied natural gas (LNG) facility in Lusby, Maryland that pose an 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. Cove Point is hereby ordered to comply with the terms of the Consent Agreement pursuant to its terms. 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 U.S.C. § 60122 and 49 CFR § 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 CFR § 190.5. ______________________ ______________________ Linda Daugherty Date Issued Acting Associate Administrator for Pipeline Safety#

42025010NOPSO_Consent Agreement and Order_01282026_(25-353455)_text.pdf, page 3U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ) In the Matter of ) ) Cove Point LNG, LP, ) ) Respondent. ) ) CPF No. 4-2025-010-NOPSO CONSENT AGREEMENT On September 24, 2025, the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to 49 U.S.C. § 60101 et seq., initiated an investigation of the safety of the 5V534A and 5V534B ethane tanks (the Ethane Tanks) operated at Cove Point LNG, LP’s (Cove Point or Respondent) liquefied natural gas (LNG) facility in Lusby, Maryland (the Facility). As a result of the investigation, the Director, Southwest Region, OPS (Director), issued to Cove Point, by letter dated October 14, 2025, a Notice of Proposed Safety Order (Notice). In accordance with 49 U.S.C. § 60117(m) and 49 CFR § 190.239, the Notice alleged that conditions may exist at the Facility that pose a pipeline integrity risk to public safety, property, or the environment. Specifically, the Notice alleged that the 5V534A ethane tank is experiencing frost heave which is placing stress on associated piping and appurtenances. OPS alleged that the frost heave has become an integrity risk to both the 5V534A and 5V534B ethane tanks. OPS also alleged in its preliminary findings that there were leaks in the area surrounding the Ethane Tanks.1 On October 16, 2025, Cove Point responded to the Notice by timely submitting a written response and a request for an informal consultation under 49 CFR § 190.239(b)(2), or, alternatively, a hearing. Two informal consultations were held on October 17 and October 27, 2025. PHMSA and Cove Point (collectively, the Parties) have jointly determined that settlement of this proceeding will avoid further administrative proceedings or litigation, and is in the public interest, and that entering into this Consent Agreement (Agreement) is the most appropriate means of resolving the issues raised in the Notice. Therefore, pursuant to 49 CFR §§ 190.219 and 190.239(b)(2), without adjudication of any issue of fact or law, and upon consent and agreement of the Parties, Cove Point and PHMSA agree to the terms and conditions set forth in this Agreement. 1 Based on information submitted by Cove Point, PHMSA has confirmed that there are no current leaks on the Ethane Tanks. Cove Point has an existing 24-7 leak detection monitoring system in the Ethane Tank area, including nine permanent leak detection sensors and seven open path leak detection sensors. None of these sensors have alarmed as a result of any leaks in the tank storage area. 1#

42025010NOPSO_Consent Agreement and Order_01282026_(25-353455)_text.pdf, page 4I. General Provisions 1. Respondent acknowledges that as the operator of the Facility, Respondent and the Facility are subject to the jurisdiction of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder. For purposes of this Agreement, Respondent acknowledges that it received proper notice of PHMSA’s action in this proceeding and that the Notice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq., and the regulations and orders issued thereunder. 2. Respondent agrees, for purposes of the Agreement, to complete the actions specified in Section II of the 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 PHMSA representative will present it to the Associate Administrator for Pipeline Safety recommending that the Associate Administrator adopt the terms of this Agreement by issuing an administrative order (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement constitute an offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate Administrator will issue a Consent Order incorporating the terms of the 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 for the dispute resolution procedures in Section IV. 5. This Agreement shall apply to and be binding upon PHMSA, and upon Cove Point, 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 Cove Point’s officers, employees, and agents whose duties might reasonably include compliance with this Agreement. 6. For all transfers of ownership or operating responsibility of the Facility, Respondent will provide a copy of this Agreement to the prospective transferee at least 30 days prior to such transfer and simultaneously provide written notice of the prospective transfer to the Director. 7. This Agreement constitutes the final, complete and exclusive agreement and understanding between the Parties with respect to the allegations in the Notice and settlement embodied in this Agreement. The Parties acknowledge that there are no representations, agreements or 2#

42025010NOPSO_Consent Agreement and Order_01282026_(25-353455)_text.pdf, page 5understandings 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 Cove Point 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 the Facility. This Agreement is not a permit, or a modification of any permit, under any Federal, State, or local laws or regulations. Cove Point 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. Cove Point 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. 11. Upon issuance of the Consent Order, Cove Point agrees to perform the Corrective Measures set forth below in Section II. II. Corrective Measures 12. Operational Status of Ethane Tanks. Cove Point may keep the Ethane Tanks in service subject to the continuous monitoring requirements in paragraph 13 and the results of the root cause failure analysis (see paragraph 16). Cove Point must remove the Ethane Tanks from service if any of the following occurs: a. Loss of containment capability of the Ethane Tanks or attached appurtenances which cannot be isolated and/or repaired. b. Detection of material loss exceeding acceptable limits per applicable design code, including internal or external corrosion impacting tank shell. c. Failure or loss of functionality in instrumentation, pressure relief devices, level indicators, temperature sensors, or emergency shutdown systems that cannot be repaired. If one of the listed devices loses functionality, Cove Point must repair or replace as soon as practicable. d. Identification by Cove Point’s third-party consultant of a condition which could lead to an imminent failure. 3#

42025010NOPSO_Consent Agreement and Order_01282026_(25-353455)_text.pdf, page 613. Monitoring Tank Storage Area Conditions. Cove Point must conduct certain monitoring activities to continuously evaluate the integrity of the Ethane Tanks. a. Ethane Gas Monitoring. i. Cove Point must install a total of four gas detection sensors: one at each of the existing two vents that are part of the ethane tank leak detection collecting system and one sensor at each of the two manway areas above the Ethane Tanks. The additional gas detection will be installed and maintained consistent with the existing point detectors, will be connected to the existing Distributed Control System, and will alarm in the control room. This additional gas detection will be added to the existing Tank Area Detector Maintenance Plan. ii. Cove Point will conduct walkdowns of the Ethane Tank area with a flame ionization detector (FID) or photoionization detector (PID) gas monitor at each 12-hour shift until Cove Point has completed the installation listed in paragraph 13(a)(i). iii. Cove Point will conduct monthly scans of the Ethane Tank area using an optical gas imaging camera. iv. Cove Point must continue to use its existing leak detection alarm system in the tank storage area. b. Monitoring of Elevation Changes. i. Cove Point must compare the data from its existing tank elevation monitoring system to determine if a change in elevation has occurred since the system was commissioned. Cove Point will document any elevation changes that have occurred in the monthly reports required by Paragraph 18. ii. A physical survey for tank elevation will be conducted every two months and this data will be submitted to PHMSA for review. The first survey will be due two months from the Effective Date and must be conducted every two (2) months thereafter. After the submission of the Root Cause Failure Analysis in accordance with Paragraph 16, Cove Point may then complete the surveys every six months. iii. Cove Point must conduct an above-ground pipe assessment at a frequency not to exceed six (6) months and repair any areas requiring remediation. Cove Point must perform a Fitness-for-Service evaluation for any pipe where findings cannot be repaired. 14. Notification. If a leak is identified through the gas detection equipment referenced in paragraph 13(a)(i), Cove Point must notify the Director within 24 hours detected by the equipment referenced in 13(a)(i), unless an earlier notification is required by 49 CFR Part 191. Cove Point must remediate the leak as soon as possible.4#

42025010NOPSO_Consent Agreement and Order_01282026_(25-353455)_text.pdf, page 715. Planned Excavation. Within 15 days of the Effective Date, Cove Point must submit its excavation plan to the Director for approval. Within 45 days of the Director’s approval, Cove Point must begin investigation of 5V534A via limited hydro excavation and shoring to determine subsurface conditions. 16. Root Cause Failure Analysis (RCFA). Within 160 days of the Effective Date, Cove Point must submit an RCFA to the Director. The RCFA must be supplemented or facilitated by an independent third-party approved by the Director and must document the decision-making process and all factors contributing to any discovered damage to the vessel. Respondent must ensure that all reports, whether draft or final, are made available in their entirety to the Director at the same time they are made available to Respondent. The final report must include findings and any lessons learned and whether the findings and lessons learned are applicable to other locations within the Facility. 17. Remediation Plan. Within 90 days of completion of the RCFA identified in Paragraph 16, Cove Point must submit a comprehensive remediation plan to the Director for approval that addresses the assessment, remediation, and, if necessary, replacement of underground tanks affected by foundation movement. Cove Point must specify the assessments, evaluations, and remedial measures Respondent will use. a. Cove Point must include a proposed schedule for completion of each submitted section of the Remediation Plan. b. Once approved by the Director, the Remediation Plan will be incorporated by reference into the Consent Order. c. Cove Point must revise the Remediation Plan as necessary to incorporate new information obtained, and submit any plan revisions to the Director for prior approval. The Director may approve plan revisions incrementally. d. Cove Point must implement the Remediation Plan, as approved by the Director, including any revisions to the plan. 18. Monthly Reports. Cove Point will provide an update on actions that have occurred within 30 days of the Effective Date. Going forward, every 30 days, Cove Point will submit reports to the Director that: (1) include analysis of all available data and results of the testing and evaluations required by this Agreement and (2) describe the progress of the repairs and other remedial actions being undertaken, including any repairs made in accordance with paragraph 12. 19. Extensions of Time. The Director may grant an extension of time for compliance with any of the terms of the Agreement upon a written request timely submitted demonstrating good cause for the extension. The Director shall respond in writing to any such request. 5#

42025010NOPSO_Consent Agreement and Order_01282026_(25-353455)_text.pdf, page 8III. Review and Approval Process 20. 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, Cove Point will take all actions as approved by the Director, subject to Respondent's right to invoke the dispute resolution procedures in Section IV with respect to any conditions the Director identifies. If the Director disapproves all or any portion of the submission, the Director will provide Cove Point 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 21. The Director and Cove Point will informally attempt to resolve any disputes arising under this Agreement. If Respondent and the Director are unable to informally resolve the dispute within 15 calendar days of submittal of Respondent's invoking dispute resolution in writing, Cove Point may, within 10 calendar days thereafter and in writing, request a written determination resolving the dispute from the Associate Administrator for Pipeline Safety. Such request must be made in writing and provided to the Director, counsel for the Southwest Region, and to the Associate Administrator, no later than 10 calendar days from the 15-day deadline for informal resolution referenced in this paragraph, providing all information that Respondent believes is relevant to the dispute. If the request is submitted as provided herein, the Associate Administrator will issue a final determination in writing. Decisions of the Associate Administrator will 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 the pendency of the dispute resolution process except as agreed by the Director or the Associate Administrator in writing. V. Enforcement 22. This Agreement, as adopted by the Consent Order, is subject to all the enforcement authorities available to PHMSA under 49 U.S.C. § 60101, et seq., and 49 CFR Part 190, including administrative civil penalties under 49 U.S.C. § 60122 and referral of the case to the Attorney General for judicial enforcement, if PHMSA determines that Respondent is not complying with the terms of this Agreement in accordance with the determinations made by the Director, or in accordance with decisions of the Associate Administrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil penalty amounts are adjusted annually for inflation. See 49 CFR § 190.223. All procedures, work plans, and schedules set forth or referenced in Section II will be automatically incorporated into this Agreement and are enforceable in the same manner. 6#

42025010NOPSO_Consent Agreement and Order_01282026_(25-353455)_text.pdf, page 9VI. Recordkeeping and Information Disclosure 23. Unless otherwise required in this Agreement, Cove Point 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, unless a longer period of time is required pursuant to 49 CFR Parts 190-199. For any reports, plans, or other deliverables required to be submitted to PHMSA pursuant to this Agreement, Cove Point 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 CFR Part 7. Cove Point 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 CFR 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 24. 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. The Director shall consider the actions that Respondent performed prior to and after the Effective Date in determining whether Respondent has satisfied the terms and conditions in Section II (Corrective Measures) of this Agreement. VIII. Modification 25. 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 26. This Agreement shall remain in effect until the Corrective Measures set forth in Section II are satisfied, as determined by the Director. Cove Point may request termination of this Agreement when appropriate. The Agreement shall not terminate until the Director confirms, in writing, that the Agreement is terminated in accordance with this paragraph. Nothing in this Agreement prevents Cove Point from completing any of the obligations earlier than the deadlines provided for in this Agreement. X. Ratification 27. 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. 28. The Parties hereby agree to all conditions and terms of this Agreement. [Signature Lines on Following Page] 7#

42025010NOPSO_Consent Agreement and Order_01282026_(25-353455)_text.pdf, page 10For Respondent: Daniel Woods Vice President, LNG Operations Date For PHMSA: Bryan Lethcoe Director, Southwest Region, Office of Pipeline Safety Date 8#

42025010NOPSO_Notice of Proposed Safety Order_10142025_(25-353455)_text.pdf, page 1Official PDFVIA ELECTRONIC MAIL TO: paul.ruppert@bhegts.com October 14, 2025 Paul Ruppert President BHE GT&S, LLC 6603 West Broad Street Richmond, VA 23200 CPF No. 4-2025-010-NOPSO Dear Mr. Ruppert: Enclosed is a Notice of Proposed Safety Order (Notice) issued in the above-referenced case. The Notice proposes that Cove Point LNG, LP, take certain measures with respect to the 5V534 A/B ethane tanks operated at Cove Point’s liquefied natural gas facility in Lusby, Maryland, to ensure pipeline safety. Your 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 CFR § 190.5. We look forward to a successful resolution to ensure pipeline safety. Please direct any questions on this matter to me at (713) 773-7215. Sincerely, Bryan Lethcoe Director, Southwest Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration Enclosure: Notice of Proposed Safety Order Copy of 49 C.F.R. § 190.239 cc: Linda Daugherty, Acting Associate Administrator for Pipeline Safety Tate Era, LNG Production Coordinator, tate.era@bhegts.com Andrew Kohout, Director, Division of LNG Facility Reviews and Inspections, FERC, andrew.kohout@ferc.gov#

42025010NOPSO_Notice of Proposed Safety Order_10142025_(25-353455)_text.pdf, page 2DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY SOUTHWEST REGION HOUSTON, TEXAS 77074 ____________________________________ ) In the Matter of ) ) Cove Point LNG, LP, ) CPF No. 4-2025-010-NOPSO ) Respondent ) ____________________________________) NOTICE OF PROPOSED SAFETY ORDER Introduction and Purpose The Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), is issuing this Notice of Proposed Safety Order (NOPSO or Notice) to Cove Point LNG LP (Cove Point or Respondent)1 pursuant to the authority provided in 49 U.S.C. § 60117 and 49 CFR § 190.239. As explained in more detail below, PHMSA has initiated an investigation of the safety of the 5V534 A and 5V534 B ethane tanks operated at Cove Point’s liquefied natural gas (LNG) facility in Lusby, Maryland. PHMSA initiated the investigation in response to the discovery of an ethane leak on September 24, 2025. 2 Cove Point’s LNG facility is subject to PHMSA’s jurisdiction pursuant to the Pipeline Safety Act, 49 U.S.C. § 60101 et seq., and Pipeline Safety Regulations, 49 C.F.R. Parts 190 to 199. PHMSA’s ongoing investigation indicates that conditions may exist at Cove Point’s LNG facility that pose a pipeline integrity risk to public safety, property, or the environment. Specifically, PHMSA’s preliminary investigation indicates that the 5V534A ethane tank is experiencing frost heave that is placing stress on associated piping and appurtenances, causing leaks. It is unknown at this time whether the frost heave is being caused by an underground leak, insulation failure, or another structural cause. Regardless of the specific causal mechanism, the continued frost heave of the tank is generating stress on associated piping and has become an integrity risk to the tank itself, the nearby 5V534B ethane tank, and the piping and appurtenances related to the tanks. For these reasons, it appears that the continued operation of the 5V534A and 5V534B ethane tanks without corrective measures would pose a pipeline integrity risk to public safety, property, or the environment. 1 Cove Point is a subsidiary of BHE GT&S, LLC. 2 PHMSA became aware of the release on September 24, 2025, however, the first day of the leak is unknown.#

42025010NOPSO_Notice of Proposed Safety Order_10142025_(25-353455)_text.pdf, page 3This NOPSO notifies Cove Point of the preliminary findings of the investigation and proposes that Cove Point take measures to ensure that the public, property, and the environment are protected from the potential risk. Background On March 17, 2025, during a routine check for leaks, Cove Point field technicians discovered ten leaks around Tanks 5V534A and 5V534B at its LNG facility in Lusby, Maryland. Tanks 5V534A and 5V534B are underground ethane tanks used to supply refrigerants for make up to the refrigeration circuit, contained in the Main Cryogenic Heat Exchanger (MCHE). Tanks 5V534A and 5V534B sit on underground mud mats meant to provide a stable foundation for the equipment ethane tank area components. The leaks ranged from a lower bound of 200 ppm up to 40,000 ppm—the latter exceeds ethane’s lower explosive level (LEL) of 3%. On May 29, 2025, Cove Point discovered that a pump skid containment in the area of the ethane tanks was sinking and settling, causing piping and wiring to bend and pull. That day, Cove Point conducted a Management Team Break-Out to discuss ethane piping movement and contacted a surveying company to obtain elevations of the affected equipment. On June 3, 2025, a contractor for Cove Point performed a piping assessment which lasted two days. The contractor did not recommend further action. A follow-up inspection was planned for October 2025, after which the contractor would issue a final report of its findings. Also on June 3, 2025, GT&S (Cove Point’s parent company) had a team of civil engineers perform an on-site review. On August 14, 2025, Cove Point included the below in its required semi-annual report to FERC: Item 4.5.2: The 5V534A/B Ethane Storage Tanks elevations have risen since original commissioning. All hazardous fluid piping was evaluated by an engineering firm and found to be acceptable. Currently planning to monitor for additional movement and assess cause. Item 6.23 (proposed modification): Install elevation monitoring system for the underground 5V534A/B Ethane Storage Tanks. Perform limited hydro-vac excavations to gather data and monitor underground temperatures. The semi-annual report did not mention the series of leaks surrounding the ethane tank, but did include leaks discovered on a hydraulic system, heat exchanger, and LNG valves. On August 19-21, 2025, a PHMSA Southwest Region inspector conducted a regularly scheduled inspection of the Cove Point facility. No Cove Point personnel made any mention of the frost heave issue with the ethane tank or the leaks on the surrounding appurtenances. On September 24, 2025, FERC conducted a follow-on inspection, in conjunction with PHMSA, to further understand the condition of the tank. During the inspection, a forward looking infrared (FLIR) camera confirmed the existence of leaks surrounding the above ground appurtenances of#

42025010NOPSO_Notice of Proposed Safety Order_10142025_(25-353455)_text.pdf, page 4the ethane tank, and the inspectors noticed the appearance of lift due to the pipe supports and cracking on the outfall concrete. The preliminary findings of PHMSA’s ongoing investigation are as follows: Preliminary Findings: • Cove Point’s LNG facility in Lusby, Maryland, is subject to PHMSA’s jurisdiction pursuant to the Pipeline Safety Act, 49 U.S.C. § 60101 et seq., and Pipeline Safety Regulations, 49 C.F.R. Parts 190 to 199. • Tanks 5V534A and 5V534B are underground ethane tanks used to supply refrigerants for the liquefaction process by supplying the Main Cryogenic Heat Exchanger (MCHE). Tanks 5V534A and 5V534B sits on underground mud mats meant to provide a stable foundation for the equipment ethane tank area components. Each tank measures 13 feet by 36 feet and they have a combined capacity of 40.047 gallons. The tanks are located in proximity to two gas flares. • On March 17, 2025, Cove Point discovered ten leaks surrounding the 5V534A and 5V534B tanks, ranging from a low of 200 ppm to 40,000 ppm, the latter of which exceeds the LEL for ethane. Cove Point repaired certain leaks located in valves and scheduled the remaining leaks to be remediated during a regularly scheduled shutdown. • On May 29, 2025, Cove Point contacted a surveying company to perform elevation measurements of its ethane piping in response to a pump skid containment (a secondary enclosure around an LNG pumping unit) that company personnel noticed was sinking and bending piping. • An elevation survey was performed on June 3, 2025, with preliminary results returned on June 9, 2025. • On June 10, 2025, Cove Point held a conference call with its elevation survey contractor during which it discussed that the subject ethane tank had risen 10 inches on the northern end and 6 inches on the southern end above its design basis. At this point, the operator began a series of discussions with contractors about excavating the tank and preparing possible installed stabilizers or other solutions. The operator believed that the ethane tank had frozen the moisture in the soil around it, causing the tank to rise and pitch, bending piping and flange connections. This is commonly known as frost heave. The tank was designed to be insulated, which renders it unclear how the tank could have frozen the surrounding soil if it was properly functioning and intact. • Cove Point’s preliminary survey results indicate that the tank has risen above its design elevation by 10 inches on the northern side of the tank and by 6 inches on the southern side of the tank. The elevation change presented by the reviewed records were apparent when walking the same footprint while on-site. Based on the elevation change of the#

42025010NOPSO_Notice of Proposed Safety Order_10142025_(25-353455)_text.pdf, page 5tank and the strain on the associated piping, it appears that the tank movement is contributing to the leaks. • Preliminarily, current conditions indicate there are two possible causal scenarios for the ethane tank movement. The first scenario is that a problem with the designed foundation or designed insulation is freezing water in the soil surrounding the tank, causing frost heave and causing the vessel to lift and strain the piping network, producing leaks. The second scenario is that the tank itself is leaking, and the ethane releasing from the tank is freezing the surrounding soil, contributing to frost heave and causing gas to leak upwards within the insulation. In either scenario, the tank will continue to undergo frost heave, bend and strain attached piping and appurtenances, and possibly generate further leaks. Both scenarios also present serious risks for in- service excavation, including excavation making contact with an ongoing ethane leak, or causing ice melt which could further destabilize the tank. • The movement of the tank generates several risks to the attached piping and appurtenances, including bending of the connected piping and components as well as generating stress on flanges and connections, which may trigger further leaking. The tanks are located nearby two ground flares, and at least one prior leak exceeded the LEL for ethane. The risk posed by additional ethane leaks is significant, particularly given the proximity to ground flares. In the event of a release, an ignition source could result in a jet fire from the attached piping, posing severe thermal and mechanical hazards to adjacent equipment and personnel. • The investigation into the tanks is on-going, and information could change. These preliminary findings may be amended based on further findings during the investigation. Proposed Issuance of Safety Order Section 60117(m) of Title 49, United States Code, provides for the issuance of a safety order, after reasonable notice and the opportunity for a hearing, requiring corrective measures, which may include physical inspection, testing, repair, 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 CFR § 190.239, a copy of which is enclosed. After evaluating the foregoing preliminary findings of fact, and having considered the characteristics of the LNG facility, including the persistence over time of leaks surrounding the ethane tanks; the uncertainty as to the root cause of the movement and leaks; the hazardous nature of the ethane stored in the tanks; the proximity of the tanks to the facility’s gas flares; the existing and potential additional impacts to persons and property; and the possibility that the condition has caused further integrity risk on associated piping and appurtenances strained by frost heave; it appears that the continued operation of the ethane tanks without corrective measures would pose a pipeline integrity risk to public safety, property, or the environment. Further, the unknown nature of the cause or mechanism of the frost heave has potentially exacerbated the integrity risk over an#

42025010NOPSO_Notice of Proposed Safety Order_10142025_(25-353455)_text.pdf, page 6extended period of time. Accordingly, corrective measures are necessary to mitigate the pipeline integrity risk of the pipeline system to protect public safety, property, and the environment. PHMSA issues this Notice of Proposed Safety Order to notify Respondent of the proposed issuance of a safety order and to propose that Respondent take measures specified herein to address the potential risk. Proposed Corrective Measures Pursuant to 49 U.S.C. § 60117(m) and 49 CFR § 190.239, PHMSA proposes to issue to Cove Point a safety order incorporating the following remedial requirements with respect to the affected pipeline. For the purposes of this Notice, “Director” means the Director, Office of Pipeline Safety, Southwest Region, PHMSA. “Ethane Make-Up Drums” refers to the 5V534 A/B ethane tanks operated at Cove Point’s facility in Lusby, Maryland. 1. Immediate Removal from Service. Within 5 days after the effective date of the Safety Order, Cove Point must make the Ethane Make-up Drums and the area surrounding the Ethane Make-up Drums safe by ceasing to use the vessels for facility operation and setting up portable gas detection equipment to maintain a safe perimeter around the tanks. a. Cove Point is not restricted from using temporary storage for ethane refrigerant so long as the storage complies with the applicable requirements in 49 CFR Part 193. 2. Immediate Leak Investigation. After the completion of Item 1, and within 7 days of receipt of the Safety Order, Cove Point must submit to the Director for written approval, a plan to detect and isolate any leaks on all above ground connections to the Ethane Make- up Drums. After the Director approves the plan, Cove Point must within 5 days execute the plan and provide documentation to the Director on actions taken to detect and isolate leaks. 3. Full Purging Plan. After the completion of Item 2, and within 20 days of receipt of the Safety Order, Cove Point must submit to the Director for written approval, a plan to purge and inert the Ethane Make up Drums in accordance with the requirements for isolation and purging in 49 CFR 193.2615 and 193.2517. Once the plan is approved by the Director, the Operator may commence the purge and inerting process in the plan. Additionally, the plan may include an alternative method to supply Ethane to the LNG plant. Documentation that the plan has been completed must be provided to the Director. 4. Remedial Work Plan (RWP). a. After completion of Item 3, and within 80 days of receipt of the Safety Order, Cove Point must submit a Remedial Work Plan (RWP) to the Director for approval. b. The Director may approve the RWP incrementally without approving the entire RWP.#

42025010NOPSO_Notice of Proposed Safety Order_10142025_(25-353455)_text.pdf, page 7c. Once approved by the Director, the RWP will be incorporated by reference into the Safety Order. d. The RWP must include a procedure or process to: i. Inspect both Ethane Make Up Drums and supporting foundations and inspect and repair all damaged piping, fittings, and supports associated with the Ethane Make- up Drums. The RWP must specify the tests, inspections, assessments, evaluations, and remedial measures Respondent will use to verify the integrity of the Ethane Make-Up Drums and all supporting or connecting appurtenances. ii. Conduct additional field tests, inspections, assessments, and evaluations to determine whether, and to what extent, the conditions on the Ethane Make-up Drums or any other integrity threats are present elsewhere in the facility. Respondent may use the results of previous tests, inspections, assessments, and evaluations if approved by the Director. iii. Describe the inspection and repair criteria Respondent will use to prioritize, excavate, evaluate, and repair anomalies, imperfections, and other identified integrity threats. Include a description of how any defects will be graded and a schedule for repairs or replacement. iv. Evaluate the effectiveness and capability of Respondent’s leak detection program on the Ethane Make-Up Drums. v. Based on the findings of the evaluation pursuant to paragraph iv of this subparagraph, identify and implement appropriate measures to enhance the effectiveness of Respondent’s leak detection system. The evaluation must consider the potential benefits of incorporating multiple layers of monitoring to help identify leaks in the vessel shell or connected piping. These measures must be designed to strengthen the system’s overall capability to detect leaks that may pose risks to public safety, property, or the environment. vi. A comprehensive plan to conduct settlement and elevation surveys for underground vessels and associated piping, including integrating geotechnical monitoring with continuous integrity assessment. The plan should begin with establishing precise elevation benchmarks around each vessel and its foundation to detect settlement, heave, or lateral displacement over time. Annual or post- event surveys must be performed to measure any deviation exceeding acceptable tolerances, which may indicate foundation instability or soil movement. Data from settlement and leak monitoring activities must be integrated to determine any correlations between ground movement and integrity risks. Findings must be documented in the facility’s integrity management system, and any signs of settlement-related stress or leak indication must trigger an engineering evaluation and corrective action plan to ensure continued safe operation of the underground system. vii. Implement continuing long-term periodic testing and integrity verification measures to ensure the ongoing safe operation of the Ethane Make-Up Drums considering the results of the analyses, inspections, evaluations, and corrective measures undertaken pursuant to the Order.#

42025010NOPSO_Notice of Proposed Safety Order_10142025_(25-353455)_text.pdf, page 8e. Include a proposed schedule for completion of the RWP. f. Cove Point must revise the RWP as necessary to incorporate new information obtained during the investigation and remedial activities, to incorporate the results of actions undertaken pursuant to the Safety Order, and/or to incorporate modifications required by the Director. i. ii. Submit any plan revisions to the Director for prior approval. The Director may approve plan revisions incrementally. g. Implement the RWP as it is approved by the Director, including any revisions to the plan. 5. Root Cause Failure Analysis. Within 90 days of receipt of the Safety Order, Cove Point must complete a root cause failure analysis (RCFA) and submit a final report of this RCFA to the Director for approval. The RCFA must be supplemented or facilitated by an independent third-party approved by the Director and must document the decision-making process and all factors contributing to any discovered damage to the vessel. Respondent must ensure that all reports, whether draft or final, are made available in their entirety to the Director at the same time they are made available to Respondent. The final report must include findings and any lessons learned and whether the findings and lessons learned are applicable to other locations within the facility. Other Requirements: 6. Approvals. With respect to each submission under the Safety Order that requires the approval of the Director, the Director may: (a) approve, in whole or part, the submission; (b) approve the submission on specified conditions; (c) modify the submission to cure any deficiencies; (d) disapprove in whole or in part, the submission, directing that Respondent modify the submission, or (e) any combination of the above. In the event of approval, approval upon conditions, or modification by the Director, Respondent shall proceed to take all action required by the submission as approved or modified by the Director. If the Director disapproves all or any portion of the submission, Respondent must correct all deficiencies within the time specified by the Director and resubmit it for approval. 7. Extensions of Time. The Director may grant an extension of time for compliance with any of the terms of the Safety Order upon a written request timely submitted demonstrating good cause for an extension. 8. Reporting. Submit weekly reports to the Director that: (1) include all available data and results of the testing and evaluations required by this Order; and (2) describe the progress of the repairs or other remedial actions being undertaken. The first weekly report is due on October 21, 2025. The Director may approve a change to the interval for the submission of these reports by written communication to Respondent. Respondent must submit a final report when each item of the Safety Order has been completed at the time that it requests closure of the Safety Order. 9. Documentation of the Costs. It is requested that Respondent maintain documentation of#

42025010NOPSO_Notice of Proposed Safety Order_10142025_(25-353455)_text.pdf, page 9the costs associated with implementation of the Safety Order. Include in each monthly report submitted, the to-date total costs associated with: (1) preparation and revision of procedures, studies and analyses; (2) physical changes to pipeline infrastructure, including repairs, replacements and other modifications; and (3) environmental remediation. The actions proposed by this Notice of Proposed Safety Order are in addition to and do not waive any requirements that apply to Respondent’s pipeline system under 49 CFR Parts 190 through 199, under any other order issued to Respondent under authority of 49 U.S.C. § 60101 et seq., or under any other provision of Federal or state law. After receiving and analyzing additional data in the course of PHMSA’s investigation, this proceeding, or implementation of the corrective measures, PHMSA may identify other safety measures that need to be taken. In that event, Respondent will be notified of any proposed additional measures and, if necessary, amendments to the Safety Order. Response to this Notice In accordance with 49 CFR § 190.239, you have 30 days following receipt of this Notice to submit a written response to the official who issued the Notice. If you do not respond within 30 days, this constitutes a waiver of your right to contest this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue a Safety Order. In your response, you may notify the official that you intend to comply with the terms of the Notice as proposed, or you may request that an informal consultation be scheduled (you will also have the opportunity to request an administrative hearing before a safety order is issued). Informal consultation provides you with the opportunity to explain the circumstances associated with the risk condition(s) alleged in the notice and, as appropriate, to present a proposal for a work plan or other remedial measures, without prejudice to your position in any subsequent hearing. If as a result of informal consultation, you and PHMSA agree on a plan and schedule for you to address each identified risk condition, the parties may enter into a written consent agreement (PHMSA would then issue an administrative consent order incorporating the terms of the agreement). If a consent agreement is not reached, or if you have elected not to request informal consultation, you may request an administrative hearing in writing within 30 days following receipt of the Notice or within 10 days following the conclusion of an informal consultation that did not result in a consent agreement, as applicable. Following a hearing, if the Associate Administrator finds the facility to have a condition that poses a pipeline integrity risk to the public, property, or the environment in accordance with § 190.239, the Associate Administrator may issue a safety order. Be advised that all material you submit in response to this enforcement action is subject to being made publicly available. If you believe that any portion of your responsive material qualifies for confidential treatment under 5 U.S.C. § 552(b), along with the complete original document you must provide a second copy of the document with the portions you believe qualify for confidential treatment redacted and an explanation of why you believe the redacted information qualifies for confidential treatment under 5 U.S.C. § 552(b).#

42025010NOPSO_Notice of Proposed Safety Order_10142025_(25-353455)_text.pdf, page 10In your correspondence on this matter, please refer to CPF No. 4-2025-010-NOPSO and for each document you submit, please provide a copy in electronic format whenever possible. ___________________________________ __________________ Bryan Lethcoe Date issued Director, Southwest Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration#