# COVE POINT LNG, LP — Safety Order

- **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:** Not available
- **summary:** OPEN safety order.
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- **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.

Official case documents:

42025010NOPSO_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

42025010NOPSO_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

42025010NOPSO_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

42025010NOPSO_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

42025010NOPSO_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

42025010NOPSO_Consent Agreement and Order_01282026_(25-353455)_text.pdf

U.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



U.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



U.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



I. 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



understandings relating to settlement other than those expressly contained in this Agreement,
except that the terms of this Agreement may be construed by reference to the Notice.
8. Nothing in this Agreement affects or relieves Respondent of its responsibility to comply
with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq.,
and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's right
of access, entry, inspection, and information gathering or PHMSA's authority to bring enforcement
actions against 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



13. 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



15. 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



III. 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



VI. 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



For 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

VIA 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



DEPARTMENT 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.



This 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



the 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



tank 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



extended 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.



c. Once approved by the Director, the RWP will be incorporated by reference 
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