{"operation":"document","citation":"CPF 42025010NOPSO","title":"COVE POINT LNG, LP — Safety Order","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"current","official":true,"published_on":"2025-10-14","effective_on":null,"summary":"OPEN safety order.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42025010nopso.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42025010nopso.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42025010nopso","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42025010NOPSO","body":"Safety Order involving COVE POINT LNG, LP. The dataset does not identify a cited regulation for this case. The case was opened on 2025-10-14 and is reported as open. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42025010NOPSO_Consent Agreement and Order_01282026_(25-353455).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025010NOPSO/42025010NOPSO_Consent%20Agreement%20and%20Order_01282026_(25-353455).pdf\n\n42025010NOPSO_Consent Agreement and Order_01282026_(25-353455)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025010NOPSO/42025010NOPSO_Consent%20Agreement%20and%20Order_01282026_(25-353455)_text.pdf\n\n42025010NOPSO_Notice of Proposed Safety Order_10142025_(25-353455).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025010NOPSO/42025010NOPSO_Notice%20of%20Proposed%20Safety%20Order_10142025_(25-353455).pdf\n\n42025010NOPSO_Notice of Proposed Safety Order_10142025_(25-353455)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025010NOPSO/42025010NOPSO_Notice%20of%20Proposed%20Safety%20Order_10142025_(25-353455)_text.pdf\n\n42025010NOPSO_Operator Request for Informal Consultation and Request for Hearing_10162025_(25-353455).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025010NOPSO/42025010NOPSO_Operator%20Request%20for%20Informal%20Consultation%20and%20Request%20for%20Hearing_10162025_(25-353455).pdf\n\n42025010NOPSO_Consent Agreement and Order_01282026_(25-353455)_text.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nJanuary 28, 2026\nVIA ELECTRONIC MAIL TO: paul.ruppert@bhegts.com\nPaul Ruppert\nPresident\nBHE GT&S, LLC\n6603 West Broad Street\nRichmond, VA 23200\nCPF No. 4-2025-010-NOPSO\nDear Mr. Ruppert:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement between\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA) and Cove Point LNG, LP,\nwhich was executed on January 26, 2026. Service of the Consent Order and Consent Agreement\nby electronic mail is deemed effective upon the date of transmission and acknowledgement of\nreceipt, or as otherwise provided under 49 CFR § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nLinda Daugherty\nActing Associate Administrator\nfor Pipeline Safety\nEnclosure: Consent Order and Consent Agreement\ncc: Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nEric Taylor, Director of Engineering Services Pipeline Integrity, BHE GT&S,\nEric.Taylor@bhegts.com\nTate Era, LNG Production Coordinator, Cove Point LNG, Tate.Era@bhegts.com\nBrianne Kurdock, Counsel for Cove Point LNG, Kurdock, BKurdock@babstcalland.com\nMelanie Lampton, Counsel for Cove Point LNG, MLampton@babstcalland.com\nAndrew Kohout, Director, Division of LNG Facility Reviews and Inspections, FERC,\nandrew.kohout@ferc.gov\nCONFIRMATION OF RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nCove Point LNG, LP, ) CPF No. 4-2025-010-NOPSO\n)\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated October 14, 2025 the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Proposed Safety Order (Notice) to\nCove Point LNG, LP (Cove Point or Respondent).\nIn accordance with 49 CFR § 190.239, the Notice alleged that conditions exist at Cove Point’s\nliquefied natural gas (LNG) facility in Lusby, Maryland that pose an integrity risk to public\nsafety, property, or the environment. The Notice also proposed that Respondent take certain\ncorrective measures to remedy the alleged conditions and ensure that the public, property, and\nthe environment are protected from the potential risk.\nIn response to the Notice, Respondent requested an informal consultation, whereupon the parties\nengaged in good-faith settlement discussions that have resulted in the Consent Agreement\nattached to this Consent Order that settles all of the allegations in the Notice.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. Cove Point is hereby ordered to comply with the terms of the Consent\nAgreement pursuant to its terms.\nPursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent Order may result in\nthe assessment of civil penalties as set forth in 49 U.S.C. § 60122 and 49 CFR § 190.223, or in\nreferral to the Attorney General for appropriate relief in a district court of the United States.\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 CFR § 190.5.\n______________________ ______________________\nLinda Daugherty Date Issued\nActing Associate Administrator\nfor Pipeline Safety\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n)\nIn the Matter of )\n)\nCove Point LNG, LP, )\n)\nRespondent. )\n)\nCPF No. 4-2025-010-NOPSO\nCONSENT AGREEMENT\nOn September 24, 2025, the Pipeline and Hazardous Materials Safety Administration (PHMSA),\nOffice of Pipeline Safety (OPS), pursuant to 49 U.S.C. § 60101 et seq., initiated an investigation of\nthe safety of the 5V534A and 5V534B ethane tanks (the Ethane Tanks) operated at Cove Point LNG,\nLP’s (Cove Point or Respondent) liquefied natural gas (LNG) facility in Lusby, Maryland (the\nFacility).\nAs a result of the investigation, the Director, Southwest Region, OPS (Director), issued to Cove Point,\nby letter dated October 14, 2025, a Notice of Proposed Safety Order (Notice). In accordance with 49\nU.S.C. § 60117(m) and 49 CFR § 190.239, the Notice alleged that conditions may exist at the Facility\nthat pose a pipeline integrity risk to public safety, property, or the environment. Specifically, the Notice\nalleged that the 5V534A ethane tank is experiencing frost heave which is placing stress on associated\npiping and appurtenances. OPS alleged that the frost heave has become an integrity risk to both the\n5V534A and 5V534B ethane tanks. OPS also alleged in its preliminary findings that there were leaks\nin the area surrounding the Ethane Tanks.1\nOn October 16, 2025, Cove Point responded to the Notice by timely submitting a written response and\na request for an informal consultation under 49 CFR § 190.239(b)(2), or, alternatively, a hearing. Two\ninformal consultations were held on October 17 and October 27, 2025. PHMSA and Cove Point\n(collectively, the Parties) have jointly determined that settlement of this proceeding will avoid further\nadministrative proceedings or litigation, and is in the public interest, and that entering into this Consent\nAgreement (Agreement) is the most appropriate means of resolving the issues raised in the Notice.\nTherefore, pursuant to 49 CFR §§ 190.219 and 190.239(b)(2), without adjudication of any issue of\nfact or law, and upon consent and agreement of the Parties, Cove Point and PHMSA agree to the terms\nand conditions set forth in this Agreement.\n1 Based on information submitted by Cove Point, PHMSA has confirmed that there are no current leaks on the Ethane\nTanks. Cove Point has an existing 24-7 leak detection monitoring system in the Ethane Tank area, including nine\npermanent leak detection sensors and seven open path leak detection sensors. None of these sensors have alarmed as a\nresult of any leaks in the tank storage area.\n1\n\n\n\nI. General Provisions\n1. Respondent acknowledges that as the operator of the Facility, Respondent and the Facility\nare subject to the jurisdiction of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and\nthe regulations and administrative orders issued thereunder. For purposes of this Agreement,\nRespondent acknowledges that it received proper notice of PHMSA’s action in this proceeding\nand that the Notice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101,\net seq., and the regulations and orders issued thereunder.\n2. Respondent agrees, for purposes of the Agreement, to complete the actions specified in\nSection II of the Agreement (Corrective Measures) and to abide by the terms of this Agreement.\nThis Agreement does not constitute a finding of violation of any Federal law or regulation and\nmay not be used in any civil or administrative proceeding of any kind as evidence or proof of any\nfact, fault, or liability, or as evidence of the violation of any law, rule, regulation, or requirement,\nexcept in a proceeding to enforce the provisions of this Agreement.\n3. After Respondent returns this signed Agreement, a PHMSA representative will present it to\nthe Associate Administrator for Pipeline Safety recommending that the Associate Administrator\nadopt the terms of this Agreement by issuing an administrative order (Consent Order)\nincorporating the terms of this Agreement. The terms of this Agreement constitute an offer of\nsettlement until accepted by the Associate Administrator. Once accepted, the Associate\nAdministrator will issue a Consent Order incorporating the terms of the Agreement.\n4. Respondent consents to the issuance of the Consent Order, and hereby waives any further\nprocedural requirements with respect to its issuance. Respondent waives all rights to contest the\nadequacy of notice, or the validity of the Consent Order or this Agreement, including all rights to\nadministrative or judicial hearings or appeals, except for the dispute resolution procedures in\nSection IV.\n5. This Agreement shall apply to and be binding upon PHMSA, and upon Cove Point, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all of Cove Point’s officers, employees, and agents whose\nduties might reasonably include compliance with this Agreement.\n6. For all transfers of ownership or operating responsibility of the Facility, Respondent will\nprovide a copy of this Agreement to the prospective transferee at least 30 days prior to such transfer\nand simultaneously provide written notice of the prospective transfer to the Director.\n7. This Agreement constitutes the final, complete and exclusive agreement and understanding\nbetween the Parties with respect to the allegations in the Notice and settlement embodied in this\nAgreement. The Parties acknowledge that there are no representations, agreements or\n2\n\n\n\nunderstandings relating to settlement other than those expressly contained in this Agreement,\nexcept that the terms of this Agreement may be construed by reference to the Notice.\n8. Nothing in this Agreement affects or relieves Respondent of its responsibility to comply\nwith all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq.,\nand the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's right\nof access, entry, inspection, and information gathering or PHMSA's authority to bring enforcement\nactions against Cove Point pursuant to the Federal pipeline safety laws, the regulations and orders\nissued thereunder, or any other provision of Federal or State law.\n9. This Agreement does not waive or modify any Federal, State, or local laws or regulations\nthat are applicable to the Facility. This Agreement is not a permit, or a modification of any permit,\nunder any Federal, State, or local laws or regulations. Cove Point remains responsible for achieving\nand maintaining compliance with all applicable Federal, State, and local laws, regulations and\npermits.\n10. This Agreement does not create rights in, or grant any cause of action to, any third party\nnot party to this Agreement. The U.S. Department of Transportation is not liable for any injuries\nor damages to persons or property arising from acts or omissions of Respondent or its officers,\nemployees, or agents carrying out the work required by this Agreement. Cove Point agrees to hold\nharmless the U.S. Department of Transportation, its officers, employees, agents, and\nrepresentatives from any and all causes of action arising from any acts or omissions of Respondent\nor its contractors in carrying out any work required by this Agreement.\n11. Upon issuance of the Consent Order, Cove Point agrees to perform the Corrective\nMeasures set forth below in Section II.\nII. Corrective Measures\n12. Operational Status of Ethane Tanks. Cove Point may keep the Ethane Tanks in service\nsubject to the continuous monitoring requirements in paragraph 13 and the results of the root cause\nfailure analysis (see paragraph 16). Cove Point must remove the Ethane Tanks from service if any\nof the following occurs:\na. Loss of containment capability of the Ethane Tanks or attached\nappurtenances which cannot be isolated and/or repaired.\nb. Detection of material loss exceeding acceptable limits per applicable design\ncode, including internal or external corrosion impacting tank shell.\nc. Failure or loss of functionality in instrumentation, pressure relief devices,\nlevel indicators, temperature sensors, or emergency shutdown systems that\ncannot be repaired. If one of the listed devices loses functionality, Cove\nPoint must repair or replace as soon as practicable.\nd. Identification by Cove Point’s third-party consultant of a condition which\ncould lead to an imminent failure.\n3\n\n\n\n13. Monitoring Tank Storage Area Conditions. Cove Point must conduct certain monitoring\nactivities to continuously evaluate the integrity of the Ethane Tanks.\na. Ethane Gas Monitoring.\ni. Cove Point must install a total of four gas detection sensors: one at each of the\nexisting two vents that are part of the ethane tank leak detection collecting\nsystem and one sensor at each of the two manway areas above the Ethane\nTanks. The additional gas detection will be installed and maintained consistent\nwith the existing point detectors, will be connected to the existing Distributed\nControl System, and will alarm in the control room. This additional gas\ndetection will be added to the existing Tank Area Detector Maintenance Plan.\nii. Cove Point will conduct walkdowns of the Ethane Tank area with a flame\nionization detector (FID) or photoionization detector (PID) gas monitor at each\n12-hour shift until Cove Point has completed the installation listed in\nparagraph 13(a)(i).\niii. Cove Point will conduct monthly scans of the Ethane Tank area using an\noptical gas imaging camera.\niv. Cove Point must continue to use its existing leak detection alarm system in the\ntank storage area.\nb. Monitoring of Elevation Changes.\ni. Cove Point must compare the data from its existing tank elevation monitoring\nsystem to determine if a change in elevation has occurred since the system was\ncommissioned. Cove Point will document any elevation changes that have\noccurred in the monthly reports required by Paragraph 18.\nii. A physical survey for tank elevation will be conducted every two months and\nthis data will be submitted to PHMSA for review. The first survey will be due\ntwo months from the Effective Date and must be conducted every two (2)\nmonths thereafter. After the submission of the Root Cause Failure Analysis in\naccordance with Paragraph 16, Cove Point may then complete the surveys\nevery six months.\niii. Cove Point must conduct an above-ground pipe assessment at a frequency not\nto exceed six (6) months and repair any areas requiring remediation. Cove\nPoint must perform a Fitness-for-Service evaluation for any pipe where\nfindings cannot be repaired.\n14. Notification. If a leak is identified through the gas detection equipment referenced in\nparagraph 13(a)(i), Cove Point must notify the Director within 24 hours detected by the\nequipment referenced in 13(a)(i), unless an earlier notification is required by 49 CFR Part\n191. Cove Point must remediate the leak as soon as possible.4\n\n\n\n15. Planned Excavation. Within 15 days of the Effective Date, Cove Point must submit its\nexcavation plan to the Director for approval. Within 45 days of the Director’s approval, Cove\nPoint must begin investigation of 5V534A via limited hydro excavation and shoring to determine\nsubsurface conditions.\n16. Root Cause Failure Analysis (RCFA). Within 160 days of the Effective Date, Cove Point\nmust submit an RCFA to the Director. The RCFA must be supplemented or facilitated by an\nindependent third-party approved by the Director and must document the decision-making process\nand all factors contributing to any discovered damage to the vessel. Respondent must ensure that\nall reports, whether draft or final, are made available in their entirety to the Director at the same\ntime they are made available to Respondent. The final report must include findings and any lessons\nlearned and whether the findings and lessons learned are applicable to other locations within the\nFacility.\n17. Remediation Plan. Within 90 days of completion of the RCFA identified in Paragraph 16,\nCove Point must submit a comprehensive remediation plan to the Director for approval that\naddresses the assessment, remediation, and, if necessary, replacement of underground tanks\naffected by foundation movement. Cove Point must specify the assessments, evaluations, and\nremedial measures Respondent will use.\na. Cove Point must include a proposed schedule for completion of each submitted section of the\nRemediation Plan.\nb. Once approved by the Director, the Remediation Plan will be incorporated by reference into\nthe Consent Order.\nc. Cove Point must revise the Remediation Plan as necessary to incorporate new information\nobtained, and submit any plan revisions to the Director for prior approval. The Director\nmay approve plan revisions incrementally.\nd. Cove Point must implement the Remediation Plan, as approved by the Director, including\nany revisions to the plan.\n18. Monthly Reports. Cove Point will provide an update on actions that have occurred within\n30 days of the Effective Date. Going forward, every 30 days, Cove Point will submit reports to\nthe Director that: (1) include analysis of all available data and results of the testing and evaluations\nrequired by this Agreement and (2) describe the progress of the repairs and other remedial actions\nbeing undertaken, including any repairs made in accordance with paragraph 12.\n19. Extensions of Time. The Director may grant an extension of time for compliance with any\nof the terms of the Agreement upon a written request timely submitted demonstrating good cause\nfor the extension. The Director shall respond in writing to any such request.\n5\n\n\n\nIII. Review and Approval Process\n20. With respect to any submission under Section II (Corrective Measures) of this Agreement\nthat requires the approval of the Director, the Director may: (a) approve, in whole or in part, the\nsubmission, (b) approve the submission on specified, reasonable conditions, (c) disapprove, in\nwhole or in part, the submission, or (d) any combination of the foregoing. If the Director approves,\napproves in part, or approves with conditions, Cove Point will take all actions as approved by the\nDirector, subject to Respondent's right to invoke the dispute resolution procedures in Section IV\nwith respect to any conditions the Director identifies. If the Director disapproves all or any portion\nof the submission, the Director will provide Cove Point with a written notice of the deficiencies.\nRespondent will correct all deficiencies within the time specified by the Director and resubmit it\nfor approval.\nIV. Dispute Resolution\n21. The Director and Cove Point will informally attempt to resolve any disputes arising under\nthis Agreement. If Respondent and the Director are unable to informally resolve the dispute within\n15 calendar days of submittal of Respondent's invoking dispute resolution in writing, Cove Point\nmay, within 10 calendar days thereafter and in writing, request a written determination resolving\nthe dispute from the Associate Administrator for Pipeline Safety. Such request must be made in\nwriting and provided to the Director, counsel for the Southwest Region, and to the Associate\nAdministrator, no later than 10 calendar days from the 15-day deadline for informal resolution\nreferenced in this paragraph, providing all information that Respondent believes is relevant to the\ndispute. If the request is submitted as provided herein, the Associate Administrator will issue\na final determination in writing. Decisions of the Associate Administrator will constitute final\nagency action. The existence of a dispute and PHMSA's consideration of matters placed in dispute\nwill not excuse, toll, or suspend any term or timeframe for completion of any work to be performed\nunder this Agreement during the pendency of the dispute resolution process except as agreed by\nthe Director or the Associate Administrator in writing.\nV. Enforcement\n22. This Agreement, as adopted by the Consent Order, is subject to all the enforcement\nauthorities available to PHMSA under 49 U.S.C. § 60101, et seq., and 49 CFR Part 190, including\nadministrative civil penalties under 49 U.S.C. § 60122 and referral of the case to the Attorney\nGeneral for judicial enforcement, if PHMSA determines that Respondent is not complying with\nthe terms of this Agreement in accordance with the determinations made by the Director, or in\naccordance with decisions of the Associate Administrator if resolved pursuant to the Dispute\nResolution process herein. The maximum civil penalty amounts are adjusted annually for\ninflation. See 49 CFR § 190.223. All procedures, work plans, and schedules set forth or referenced\nin Section II will be automatically incorporated into this Agreement and are enforceable in the\nsame manner.\n6\n\n\n\nVI. Recordkeeping and Information Disclosure\n23. Unless otherwise required in this Agreement, Cove Point agrees to maintain records\ndemonstrating compliance with all requirements of this Agreement for a period of at least five\nyears following completion of all work to be performed, unless a longer period of time is required\npursuant to 49 CFR Parts 190-199. For any reports, plans, or other deliverables required to be\nsubmitted to PHMSA pursuant to this Agreement, Cove Point may assert a claim of business\nconfidentiality or other protections applicable to the release of information by PHMSA, covering\npart or all of the information required to be submitted to PHMSA pursuant to this Agreement in\naccordance with 49 CFR Part 7. Cove Point must mark the claim of confidentiality in writing on\neach page, and include a statement specifying the grounds for each claim of confidentially. PHMSA\ndetermines release of any information submitted pursuant to this Agreement in accordance with\n49 CFR Part 7, the Freedom of Information Act, 5 U.S.C. § 552, DOT and PHMSA policies, and\nother applicable regulations and Executive Orders.\nVII. Effective Date\n24. The term “Effective Date” as used herein, is the date on which the Consent Order is issued\nby the Associate Administrator incorporating the terms of this Agreement. Unless specified to the\ncontrary, all deadlines for actions required by this Agreement run from the Effective Date. The\nDirector shall consider the actions that Respondent performed prior to and after the Effective Date\nin determining whether Respondent has satisfied the terms and conditions in Section II (Corrective\nMeasures) of this Agreement.\nVIII. Modification\n25. The terms of this Agreement may be modified by mutual agreement of the Parties. Such\nmodifications must be in writing and signed by both parties.\nIX. Termination\n26. This Agreement shall remain in effect until the Corrective Measures set forth in Section II\nare satisfied, as determined by the Director. Cove Point may request termination of this Agreement\nwhen appropriate. The Agreement shall not terminate until the Director confirms, in writing, that\nthe Agreement is terminated in accordance with this paragraph. Nothing in this Agreement\nprevents Cove Point from completing any of the obligations earlier than the deadlines provided\nfor in this Agreement.\nX. Ratification\n27. The Parties' undersigned representatives certify that they are fully authorized to enter into\nthe terms and conditions of this Agreement and to execute and legally bind such party to this\ndocument.\n28. The Parties hereby agree to all conditions and terms of this Agreement.\n[Signature Lines on Following Page]\n7\n\n\n\nFor Respondent:\nDaniel Woods\nVice President, LNG Operations\nDate\nFor PHMSA:\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nDate\n8\n\n42025010NOPSO_Notice of Proposed Safety Order_10142025_(25-353455)_text.pdf\n\nVIA ELECTRONIC MAIL TO: paul.ruppert@bhegts.com\nOctober 14, 2025\nPaul Ruppert\nPresident\nBHE GT&S, LLC\n6603 West Broad Street\nRichmond, VA 23200\nCPF No. 4-2025-010-NOPSO\nDear Mr. Ruppert:\nEnclosed is a Notice of Proposed Safety Order (Notice) issued in the above-referenced case. The\nNotice proposes that Cove Point LNG, LP, take certain measures with respect to the 5V534 A/B\nethane tanks operated at Cove Point’s liquefied natural gas facility in Lusby, Maryland, to ensure\npipeline safety. Your options for responding are set forth in the Notice. Service of this Notice by\nelectronic mail is deemed effective upon the date of transmission, or as otherwise provided under\n49 CFR § 190.5.\nWe look forward to a successful resolution to ensure pipeline safety. Please direct any questions\non this matter to me at (713) 773-7215.\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Notice of Proposed Safety Order\nCopy of 49 C.F.R. § 190.239\ncc: Linda Daugherty, Acting Associate Administrator for Pipeline Safety\nTate Era, LNG Production Coordinator, tate.era@bhegts.com\nAndrew Kohout, Director, Division of LNG Facility Reviews and Inspections,\nFERC, andrew.kohout@ferc.gov\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nSOUTHWEST REGION\nHOUSTON, TEXAS 77074\n____________________________________\n)\nIn the Matter of )\n)\nCove Point LNG, LP, ) CPF No. 4-2025-010-NOPSO\n)\nRespondent )\n____________________________________)\nNOTICE OF PROPOSED SAFETY ORDER\nIntroduction and Purpose\nThe Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), is issuing this Notice of Proposed Safety Order (NOPSO or Notice) to Cove Point LNG LP\n(Cove Point or Respondent)1 pursuant to the authority provided in 49 U.S.C. § 60117 and 49 CFR\n§ 190.239. As explained in more detail below, PHMSA has initiated an investigation of the safety\nof the 5V534 A and 5V534 B ethane tanks operated at Cove Point’s liquefied natural gas (LNG)\nfacility in Lusby, Maryland. PHMSA initiated the investigation in response to the discovery of an\nethane leak on September 24, 2025.\n2 Cove Point’s LNG facility is subject to PHMSA’s\njurisdiction pursuant to the Pipeline Safety Act, 49 U.S.C. § 60101 et seq., and Pipeline Safety\nRegulations, 49 C.F.R. Parts 190 to 199.\nPHMSA’s ongoing investigation indicates that conditions may exist at Cove Point’s LNG facility\nthat pose a pipeline integrity risk to public safety, property, or the environment. Specifically,\nPHMSA’s preliminary investigation indicates that the 5V534A ethane tank is experiencing frost\nheave that is placing stress on associated piping and appurtenances, causing leaks. It is unknown\nat this time whether the frost heave is being caused by an underground leak, insulation failure, or\nanother structural cause. Regardless of the specific causal mechanism, the continued frost heave\nof the tank is generating stress on associated piping and has become an integrity risk to the tank\nitself, the nearby 5V534B ethane tank, and the piping and appurtenances related to the tanks. For\nthese reasons, it appears that the continued operation of the 5V534A and 5V534B ethane tanks\nwithout corrective measures would pose a pipeline integrity risk to public safety, property, or the\nenvironment.\n1 Cove Point is a subsidiary of BHE GT&S, LLC.\n2 PHMSA became aware of the release on September 24, 2025, however, the first day of the leak is unknown.\n\n\n\nThis NOPSO notifies Cove Point of the preliminary findings of the investigation and proposes that\nCove Point take measures to ensure that the public, property, and the environment are protected\nfrom the potential risk.\nBackground\nOn March 17, 2025, during a routine check for leaks, Cove Point field technicians discovered ten\nleaks around Tanks 5V534A and 5V534B at its LNG facility in Lusby, Maryland. Tanks 5V534A\nand 5V534B are underground ethane tanks used to supply refrigerants for make up to the\nrefrigeration circuit, contained in the Main Cryogenic Heat Exchanger (MCHE). Tanks 5V534A\nand 5V534B sit on underground mud mats meant to provide a stable foundation for the equipment\nethane tank area components. The leaks ranged from a lower bound of 200 ppm up to 40,000\nppm—the latter exceeds ethane’s lower explosive level (LEL) of 3%.\nOn May 29, 2025, Cove Point discovered that a pump skid containment in the area of the ethane\ntanks was sinking and settling, causing piping and wiring to bend and pull. That day, Cove Point\nconducted a Management Team Break-Out to discuss ethane piping movement and contacted a\nsurveying company to obtain elevations of the affected equipment.\nOn June 3, 2025, a contractor for Cove Point performed a piping assessment which lasted two\ndays. The contractor did not recommend further action. A follow-up inspection was planned for\nOctober 2025, after which the contractor would issue a final report of its findings. Also on June 3,\n2025, GT&S (Cove Point’s parent company) had a team of civil engineers perform an on-site\nreview.\nOn August 14, 2025, Cove Point included the below in its required semi-annual report to FERC:\nItem 4.5.2: The 5V534A/B Ethane Storage Tanks elevations have risen since\noriginal commissioning. All hazardous fluid piping was evaluated by an\nengineering firm and found to be acceptable. Currently planning to monitor for\nadditional movement and assess cause.\nItem 6.23 (proposed modification): Install elevation monitoring system for the\nunderground 5V534A/B Ethane Storage Tanks. Perform limited hydro-vac\nexcavations to gather data and monitor underground temperatures.\nThe semi-annual report did not mention the series of leaks surrounding the ethane tank, but did\ninclude leaks discovered on a hydraulic system, heat exchanger, and LNG valves.\nOn August 19-21, 2025, a PHMSA Southwest Region inspector conducted a regularly scheduled\ninspection of the Cove Point facility. No Cove Point personnel made any mention of the frost\nheave issue with the ethane tank or the leaks on the surrounding appurtenances.\nOn September 24, 2025, FERC conducted a follow-on inspection, in conjunction with PHMSA, to\nfurther understand the condition of the tank. During the inspection, a forward looking infrared\n(FLIR) camera confirmed the existence of leaks surrounding the above ground appurtenances of\n\n\n\nthe ethane tank, and the inspectors noticed the appearance of lift due to the pipe supports and\ncracking on the outfall concrete.\nThe preliminary findings of PHMSA’s ongoing investigation are as follows:\nPreliminary Findings:\n• Cove Point’s LNG facility in Lusby, Maryland, is subject to PHMSA’s jurisdiction\npursuant to the Pipeline Safety Act, 49 U.S.C. § 60101 et seq., and Pipeline Safety\nRegulations, 49 C.F.R. Parts 190 to 199.\n• Tanks 5V534A and 5V534B are underground ethane tanks used to supply refrigerants\nfor the liquefaction process by supplying the Main Cryogenic Heat Exchanger\n(MCHE). Tanks 5V534A and 5V534B sits on underground mud mats meant to provide\na stable foundation for the equipment ethane tank area components. Each tank measures\n13 feet by 36 feet and they have a combined capacity of 40.047 gallons. The tanks are\nlocated in proximity to two gas flares.\n• On March 17, 2025, Cove Point discovered ten leaks surrounding the 5V534A and\n5V534B tanks, ranging from a low of 200 ppm to 40,000 ppm, the latter of which\nexceeds the LEL for ethane. Cove Point repaired certain leaks located in valves and\nscheduled the remaining leaks to be remediated during a regularly scheduled shutdown.\n• On May 29, 2025, Cove Point contacted a surveying company to perform elevation\nmeasurements of its ethane piping in response to a pump skid containment (a secondary\nenclosure around an LNG pumping unit) that company personnel noticed was sinking\nand bending piping.\n• An elevation survey was performed on June 3, 2025, with preliminary results returned\non June 9, 2025.\n• On June 10, 2025, Cove Point held a conference call with its elevation survey\ncontractor during which it discussed that the subject ethane tank had risen 10 inches on\nthe northern end and 6 inches on the southern end above its design basis. At this point,\nthe operator began a series of discussions with contractors about excavating the tank\nand preparing possible installed stabilizers or other solutions. The operator believed\nthat the ethane tank had frozen the moisture in the soil around it, causing the tank to\nrise and pitch, bending piping and flange connections. This is commonly known as\nfrost heave. The tank was designed to be insulated, which renders it unclear how the\ntank could have frozen the surrounding soil if it was properly functioning and intact.\n• Cove Point’s preliminary survey results indicate that the tank has risen above its design\nelevation by 10 inches on the northern side of the tank and by 6 inches on the southern\nside of the tank. The elevation change presented by the reviewed records were apparent\nwhen walking the same footprint while on-site. Based on the elevation change of the\n\n\n\ntank and the strain on the associated piping, it appears that the tank movement is\ncontributing to the leaks.\n• Preliminarily, current conditions indicate there are two possible causal scenarios for\nthe ethane tank movement. The first scenario is that a problem with the designed\nfoundation or designed insulation is freezing water in the soil surrounding the tank,\ncausing frost heave and causing the vessel to lift and strain the piping network,\nproducing leaks. The second scenario is that the tank itself is leaking, and the ethane\nreleasing from the tank is freezing the surrounding soil, contributing to frost heave and\ncausing gas to leak upwards within the insulation. In either scenario, the tank will\ncontinue to undergo frost heave, bend and strain attached piping and appurtenances,\nand possibly generate further leaks. Both scenarios also present serious risks for in-\nservice excavation, including excavation making contact with an ongoing ethane leak,\nor causing ice melt which could further destabilize the tank.\n• The movement of the tank generates several risks to the attached piping and\nappurtenances, including bending of the connected piping and components as well as\ngenerating stress on flanges and connections, which may trigger further leaking. The\ntanks are located nearby two ground flares, and at least one prior leak exceeded the\nLEL for ethane. The risk posed by additional ethane leaks is significant, particularly\ngiven the proximity to ground flares. In the event of a release, an ignition source could\nresult in a jet fire from the attached piping, posing severe thermal and mechanical\nhazards to adjacent equipment and personnel.\n• The investigation into the tanks is on-going, and information could change. These\npreliminary findings may be amended based on further findings during the\ninvestigation.\nProposed Issuance of Safety Order\nSection 60117(m) of Title 49, United States Code, provides for the issuance of a safety order, after\nreasonable notice and the opportunity for a hearing, requiring corrective measures, which may\ninclude physical inspection, testing, repair, or other action, as appropriate. The basis for making\nthe determination that a pipeline facility has a condition or conditions that pose a pipeline integrity\nrisk to public safety, property, or the environment is set forth both in the above-referenced statute\nand 49 CFR § 190.239, a copy of which is enclosed.\nAfter evaluating the foregoing preliminary findings of fact, and having considered the\ncharacteristics of the LNG facility, including the persistence over time of leaks surrounding the\nethane tanks; the uncertainty as to the root cause of the movement and leaks; the hazardous nature\nof the ethane stored in the tanks; the proximity of the tanks to the facility’s gas flares; the existing\nand potential additional impacts to persons and property; and the possibility that the condition has\ncaused further integrity risk on associated piping and appurtenances strained by frost heave; it\nappears that the continued operation of the ethane tanks without corrective measures would pose\na pipeline integrity risk to public safety, property, or the environment. Further, the unknown nature\nof the cause or mechanism of the frost heave has potentially exacerbated the integrity risk over an\n\n\n\nextended period of time. Accordingly, corrective measures are necessary to mitigate the pipeline\nintegrity risk of the pipeline system to protect public safety, property, and the environment.\nPHMSA issues this Notice of Proposed Safety Order to notify Respondent of the proposed\nissuance of a safety order and to propose that Respondent take measures specified herein to address\nthe potential risk.\nProposed Corrective Measures\nPursuant to 49 U.S.C. § 60117(m) and 49 CFR § 190.239, PHMSA proposes to issue to Cove Point\na safety order incorporating the following remedial requirements with respect to the affected\npipeline.\nFor the purposes of this Notice, “Director” means the Director, Office of Pipeline Safety,\nSouthwest Region, PHMSA. “Ethane Make-Up Drums” refers to the 5V534 A/B ethane tanks\noperated at Cove Point’s facility in Lusby, Maryland.\n1. Immediate Removal from Service. Within 5 days after the effective date of the Safety\nOrder, Cove Point must make the Ethane Make-up Drums and the area surrounding the\nEthane Make-up Drums safe by ceasing to use the vessels for facility operation and\nsetting up portable gas detection equipment to maintain a safe perimeter around the\ntanks.\na. Cove Point is not restricted from using temporary storage for ethane refrigerant\nso long as the storage complies with the applicable requirements in 49 CFR Part\n193.\n2. Immediate Leak Investigation. After the completion of Item 1, and within 7 days of\nreceipt of the Safety Order, Cove Point must submit to the Director for written approval,\na plan to detect and isolate any leaks on all above ground connections to the Ethane Make-\nup Drums. After the Director approves the plan, Cove Point must within 5 days execute\nthe plan and provide documentation to the Director on actions taken to detect and isolate\nleaks.\n3. Full Purging Plan. After the completion of Item 2, and within 20 days of receipt of the\nSafety Order, Cove Point must submit to the Director for written approval, a plan to purge\nand inert the Ethane Make up Drums in accordance with the requirements for isolation\nand purging in 49 CFR 193.2615 and 193.2517. Once the plan is approved by the\nDirector, the Operator may commence the purge and inerting process in the plan.\nAdditionally, the plan may include an alternative method to supply Ethane to the LNG\nplant. Documentation that the plan has been completed must be provided to the Director.\n4. Remedial Work Plan (RWP).\na. After completion of Item 3, and within 80 days of receipt of the Safety Order, Cove\nPoint must submit a Remedial Work Plan (RWP) to the Director for approval.\nb. The Director may approve the RWP incrementally without approving the entire RWP.\n\n\n\nc. Once approved by the Director, the RWP will be incorporated by reference ","truncated":true,"body_characters":49795}