{"operation":"document","citation":"CPF 42026023NOPV","title":"FLORIDA CITY GAS — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2026-02-12","effective_on":null,"summary":"CLOSED notice of probable violation citing 193.2625(b), 193.2627.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42026023nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42026023nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42026023nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42026023NOPV","body":"Notice of Probable Violation involving FLORIDA CITY GAS. PHMSA's enforcement data identifies the cited regulations as 193.2625(b),  193.2627. The case was opened on 2026-02-12 and is reported as closed as of 2026-07-09. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42026023NOPV_Closure Letter_07092026_(25-329815).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026023NOPV/42026023NOPV_Closure%20Letter_07092026_(25-329815).pdf\n\n42026023NOPV_Closure Letter_07092026_(25-329815)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026023NOPV/42026023NOPV_Closure%20Letter_07092026_(25-329815)_text.pdf\n\n42026023NOPV_Final Order_03262026_(25-329815).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026023NOPV/42026023NOPV_Final%20Order_03262026_(25-329815).pdf\n\n42026023NOPV_Final Order_03262026_(25-329815)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026023NOPV/42026023NOPV_Final%20Order_03262026_(25-329815)_text.pdf\n\n42026023NOPV_Operator Response to Notice_03132026_(25-329815).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026023NOPV/42026023NOPV_Operator%20Response%20to%20Notice_03132026_(25-329815).pdf\n\n42026023NOPV_PCO_02122026_(25-329815).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026023NOPV/42026023NOPV_PCO_02122026_(25-329815).pdf\n\n42026023NOPV_PCO_02122026_(25-329815)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026023NOPV/42026023NOPV_PCO_02122026_(25-329815)_text.pdf\n\n42026023NOPV_Final Order_03262026_(25-329815)_text.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nMarch 26, 2026\nVIA EMAIL TO: jhouseholder@chpk.com\nJeffrey M. Householder\nPresident and Chief Executive Officer\nChesapeake Utilities Corporation\n500 Energy Lane\nDover, Delaware 19901\nRe: CPF No. 4-2026-023-NOPV\nDear Mr. Householder:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and specifies actions that need to be taken to comply with the pipeline safety\nregulations. When the terms of the compliance order are completed, as determined by the\nDirector, Southwest Region, this enforcement action will be closed. Service of the Final Order\nby e-mail is effective upon the date of transmission and acknowledgement of receipt as provided\nunder 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nLinda Daugherty\nActing Associate Administrator\nfor Pipeline Safety\nEnclosures (Final Order and NOPV)\ncc: Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMike McCarty, Manager, Operations Compliance, Florida Public Utilities/Florida City\nGas, mmccarty@chpk.com\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 )\nFlorida City Gas, ) CPF No. 4-2026-023-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn February 12, 2026, pursuant to 49 CFR § 190.207, the Director, Southwest Region, Office of\nPipeline Safety (OPS), issued a Notice of Probable Violation and Proposed Compliance Order\n(Notice) to Florida City Gas (Respondent), a subsidiary of Chesapeake Utilities Corporation.\nThe Notice proposed finding that Respondent violated the pipeline safety regulations in 49 CFR\nPart 193. The Notice also proposed certain measures to correct the violation. Respondent did not\ncontest the allegation of violation or corrective measures.\nBased upon a review of all of the evidence, pursuant to section 190.213, I find Respondent\nviolated the pipeline safety regulation listed below, as more fully described in the enclosed\nNotice, which is incorporated by reference:\n49 CFR § 193.2625(b)(1) (Item 1) ─ Respondent failed to protect from corrosion\ncomponents whose integrity or reliability could be adversely affected by\ncorrosion.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nCompliance Actions\nPursuant to 49 U.S.C. § 60118(b) and 49 CFR § 190.217, Respondent is ordered to take the\nactions proposed in the enclosed Notice to correct the violation. The Director may grant an\nextension of time to comply with any of the required items upon a written request timely\nsubmitted by the Respondent and demonstrating good cause for an extension. Upon completion\nof the ordered actions, Respondent may request that the Director close the case. Failure to\ncomply with this Order may result in the assessment of civil penalties under 49 CFR § 190.223\nor in referral to the Attorney General for appropriate relief in a district court of the United States.\n\n\n\n2\nThe terms and conditions of this order are effective upon service in accordance with 49 CFR\n§ 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\nSafety Administration 8701 S. Gessner, Suite 630\nHouston TX 77074\nNOTICE OF PROBABLE VIOLATION\nand\nPROPOSED COMPLIANCE ORDER\nVIA ELECTRONIC MAIL TO: jhouseholder@chpk.com\nFebruary 12, 2026\nJeffry M. Householder\nPresident and Central Executive Officer\nChesapeake Utilities Corporation\n500 Energy Lane\nDover, Delaware 19901\nCPF 4-2026-023-NOPV\nDear Mr. Householder:\nFrom May 5 to May 8, 2025, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United\nStates Code (U.S.C.) inspected Florida City Gas’s (FCG) Miami Dade LNG Facility in Homestead,\nFlorida.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and\nthe probable violation is:\n1. § 193.2625 Corrosion protection.\n(a) . . . .\n(b) Components whose integrity or reliability could be adversely\naffected by corrosion must be either -\n(1) Protected from corrosion in accordance with § 193.2627\nthrough § 193.2635, as applicable; or\n(2) Inspected and replaced under a program of scheduled\nmaintenance in accordance with procedures established under\n§ 193.2605.\n\n\n\n§ 193.2627 Atmospheric corrosion control.\nEach exposed component that is subject to atmospheric corrosive\nattack must be protected from atmospheric corrosion by—\n(a) Material that has been designed and selected to resist the\ncorrosive atmosphere involved; or\n(b) Suitable coating or jacketing.\nFCG failed to protect from corrosion components whose integrity or reliability could be adversely\naffected by corrosion in accordance with § 193.2625(b)(1). Specifically, FCG failed to protect the\nwater glycol piping system at its Miami Dade LNG facility from atmospheric corrosive attack with\nsuitable coating or jacketing. During the inspection, PHMSA personnel using viewing ports\nobserved multiple instances of corrosion underneath the insulation on the water glycol system\npiping.\nThe extent and severity of the corrosion observed indicate an aggressive corrosion mechanism\nbecause the degradation present is very unlikely to have developed within the approximately two-\nyear period between the commissioning of the Miami Dade LNG facility in April 2023 and the on-\nsite inspection in May 2025 had the system been adequately protected from atmospheric corrosive\nattack through appropriate coating or jacketing.\nTherefore, FCG failed to protect from corrosion components whose integrity or reliability could\nbe adversely affected by corrosion in accordance with § 193.2625(b)(1).\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$272,926 per violation per day the violation persists, up to a maximum of $2,729,245 for a related\nseries of violations. For violation occurring on or after December 28, 2023 and before December\n30, 2024, the maximum penalty may not exceed $266,015 per violation per day the violation\npersists, up to a maximum of $2,660,135 for a related series of violations. For violation occurring\non or after January 6, 2023 and before December 28, 2023, the maximum penalty may not exceed\n$257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a related\nseries of violations. For violation occurring on or after March 21, 2022 and before January 6, 2023,\nthe maximum penalty may not exceed $239,142 per violation per day the violation persists, up to\na maximum of $2,391,412 for a related series of violations. For violation occurring on or after\nMay 3, 2021 and before March 21, 2022, the maximum penalty may not exceed $225,134 per\nviolation per day the violation persists, up to a maximum of $2,251,334 for a related series of\nviolations. For violation occurring on or after January 11, 2021 and before May 3, 2021, the\nmaximum penalty may not exceed $222,504 per violation per day the violation persists, up to a\nmaximum of $2,225,034 for a related series of violations. For violation occurring on or after July\n31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per\nviolation per day the violation persists, up to a maximum of $2,186,465 for a related series of\nviolations.\n2\n\n\n\nAlso, for each violation involving LNG facilities, an additional penalty of not more than $99,704\noccurring on or after December 30, 2024 may be imposed. For each violation involving LNG\nfacilities, an additional penalty of not more than $97,179 occurring on or after December 28, 2023\nand before December 30, 2024 may be imposed. For each violation involving LNG facilities, an\nadditional penalty of not more than $94,128 occurring on or after January 6, 2023 and before\nDecember 28, 2023 may be imposed. For each violation involving LNG facilities, an additional\npenalty of not more than $87,362 occurring on or after March 21, 2022 and before January 6, 2023\nmay be imposed. For each violation involving LNG facilities, an additional penalty of not more\nthan $82,245 occurring on or after May 3, 2021 and before March 21, 2022 may be imposed. For\neach violation involving LNG facilities, an additional penalty of not more than $81,284 occurring\non or after January 11, 2021 and before May 3, 2021 may be imposed. For each violation involving\nLNG facilities, an additional penalty of not more than $79,875 occurring on or after July 31, 2019\nand before January 11, 2021 may be imposed.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to propose a civil penalty assessment at this time.\nProposed Compliance Order\nWith respect to Item 1 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety\nAdministration proposes to issue a Compliance Order to Florida City Gas. Please refer to the\nProposed Compliance Order, which is enclosed and made a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nEnforcement Proceedings. Please refer to this document and note the response options. All\nmaterial you submit in response to this enforcement action may be made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. §552(b), along with the complete original document you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. § 552(b).\nFollowing your receipt of this Notice, you have 30 days to respond as described in the enclosed\nResponse Options. If you do not respond within 30 days of receipt of this Notice, this constitutes\na waiver of your right to contest the allegations in this Notice and authorizes the Associate\nAdministrator for Pipeline Safety to find facts as alleged in this Notice without further notice to\nyou and to issue a Final Order. If you are responding to this Notice, we propose that you submit\nyour correspondence to my office within 30 days from receipt of this Notice. The Region Director\nmay extend the period for responding upon a written request timely submitted demonstrating good\ncause for an extension.\nIn your correspondence on this matter, please refer to CPF 4-2026-023-NOPV and, for each\ndocument you submit, please provide a copy in electronic format whenever possible.\n2\n\n\n\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Enforcement Proceedings\ncc: Michael McCarty, Director, Operations Compliance, mmccarty@chpk.com\n2\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Florida City Gas (FCG) a Compliance Order\nincorporating the following remedial requirements to ensure the compliance of FCG with the\npipeline safety regulations:\nA. With respect to Item 1 of the Notice concerning FCG’s failure to protect from\ncorrosion components whose integrity or reliability could be adversely affected by\ncorrosion in accordance with § 193.2625(b)(1), FCG must:\ni. Submit a work plan to the Director, Southwest Region to remove the insulation\nfrom the affected piping and apply a protective coating within 30 days of receipt\nof the Final Order. The work plan must address insulation removal, evaluation\nand treatment of corroded areas, and application of protective coating. FCG\nmust implement the work plan upon submittal. Any deviations from the work\nplan must be documented and provided to the Director, Southwest Region upon\ncompletion of the work.\nii. Remove the insulation from the affected piping and apply a protective coating\nusing procedures and work practices consistent with generally accepted\nengineering practice within 120 days of receipt of the Final Order.\niii. Provide monthly progress reports on the above corrective actions to the\nDirector, Southwest Region. The monthly progress reports must include but are\nnot limited to: progress made during the timeframe covered by that monthly\nreport, progress anticipated in the timeframe of the next monthly report, any\nongoing or anticipated delays and the justification for those delays. The first\nmonthly progress report is due to the Director, Southwest Region, within 30\ndays after receipt of the Final Order.\niv. Submit all records related to the work plan detailed in A(i) and (ii), including\nWork Orders and photography documenting the work, to the Director,\nSouthwest Region within 30 days of the completion of the final work plan.\nB. It is requested (not mandated) that Florida City Gas maintain documentation of the\nsafety improvement costs associated with fulfilling this Compliance Order and\nsubmit the total to Bryan Lethcoe, Director, Southwest Region, Office of Pipeline\nSafety, Pipeline and Hazardous Materials Safety Administration. It is requested that\nthese costs be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses, and 2) total cost\nassociated with replacements, additions and other changes to pipeline\ninfrastructure.\n2\n\n42026023NOPV_Closure Letter_07092026_(25-329815)_text.pdf\n\nU.S. Department\nof Transportation\nPipeline and\nHazardous Materials\nSafety Administration\n8701 S. Gessner, Suite 630\nHouston TX 77074\nVIA ELECTRONIC MAIL TO: jhouseholder@chpk.com\nJuly 9, 2026\nJeffry M. Householder\nPresident and Chief Executive Officer\nChesapeake Utilities Corporation\n500 Energy Lane\nDover, Delaware 19901\nCPF 4-2026-023-NOPV\nDear Mr. Householder:\nOn March 26, 2026, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\nto Florida City Gas (FCG), a Final Order in the above-referenced case. This Order included a\nCompliance Order.\nBased on our review of the documentation you provided, it has been determined that FCG has\ncomplied with the terms of this Order.\nAccordingly, this case is now closed, and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nR. M. Seeley\nActing Director, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Michael McCarty, Director, Operations Compliance, Chesapeake Utilities Corporation,\nmmccarty@chpk.com","truncated":false,"body_characters":16755}