u.s. departmentof transportation pipeline and …

U.S. DEPARTMENT OF TRANSPORTATION

PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION

SPECIAL PERMIT

Special Permit Information:

Docket Number:

Requested By:

Operator ID#:

Original Date Requested:

Original Issuance Date:

Effective Dates:

Code Section(s):

Grant of Special Permit:

PHMSA-2018-0042

Golden Pass LNG Terminal LLC

32220

April 2, 2018

June 3, 2019

June 3, 2019 to June 2, 2025

49 CFR 193.2603(a) and (b), 193.2607, 193.2609, 193.2619(c)and (e), 193.2631, and 193.2635(e)

By this order, subject to the terms and conditions set forth below, the Pipeline and Hazardous Materials

Safety Administration (PHMSA) Office of Pipeline Safety (OPS)1 grants this special permit to Golden

Pass LNG Terminal LLC (GPLNG), waiving compliance from certain regulations under 49 Code of

Federal Regulations (CFR) Part 193 Subpart G - Maintenance for the Liquefied Natural Gas (LNG) for

the Regasification Import Receiving Terminal (GPLNG Terminal) located on the Sabine Neches

Waterway, in Jefferson County, Texas. The specific regulations being waived include 49 CFR

193.2603(a) and (b), 193.2607, 193.2609, 193.2619(c) and (e), 193.2631, and 193.2635(e), which

specify the maintenance, inspection, and testing provisions requirements for LNG facilities.2

I. Purpose and Need:

Since June 2012, the GPLNG Terminal has maintained a warmed state, where all LNG has been

removed, but equipment remains in a state of readiness and contains methane vapor. GPLNG plans to

1 Throughout this special permit the usage of "PHMSA" or "PHMSA OPS" means the U.S. Department of Transportation'sPipeline and Hazardous Materials Safety Administration Office of Pipeline Safety.

2 LNG facility is defined in 49 CFR 193.2007 as a pipeline facility that is used for liquefying natural gas or synthetic gas ortransferring, storing, or vaporizing liquefied natural gas.

Special Permit: PHMSA-2018-0042, Golden Pass LNG Terminal LLC of 22

modify the existing GPLNG Terminal to interconnect it with export facilities.3 To maximize safety of

the interconnection construction, GPLNG will create a hydrocarbon-free environment in the existing

GPLNG Terminal prior to construction of the new export project. Existing equipment will be kept at

ambient temperature, and hydrocarbons will be purged and displaced with nitrogen. The hydrocarbon-

free environment will provide safer conditions to interconnect new equipment/facilities to existing

equipment and to modify certain existing equipment. The GPLNG Terminal will be isolated from the

transmission lines by blinds. While the GPLNG Terminal is out of service and purged of hazardous

fluid,4 performing certain maintenance, inspection, and testing activities required in 49 CFR Part 193,

subpart G, would not increase safety and reliability for the GPLNG Terminal facility. Appendix A

includes the GPLNG Terminal site map. Appendix B includes a table that provides the requested

maintenance regulations and justification for the variance, and Appendix C includes the regulations that

GPLNG must continue to perform at the GPLNG Terminal. On the condition that GPLNG complies

with the terms and conditions set forth below, this special permit waives the maintenance requirements

in 49 CFR 193.2603(a) and (b), 193.2607, 193.2609, 193.2619(c) and (e), 193.2631, and 193.2635(e) for

the GPLNG Terminal only when the LNG facilities are purged free ofhydrocarbon.

The GPLNG Terminal facility and all components must comply fully with 49 CFR Part 193 prior to the

reintroduction of hydrocarbons. Prior to returning the GPLNG Terminal back to service, GPLNG will

carry out its recommissioning/restart plan, and PHMSA will perform inspections to verify that the LNG

facility equipment and components are fully restored to their original and fully compliant functions.

PHMSA grants this special permit based on the findings set forth in the "Special Permit Analysis and

Findings" and "Final Environmental Assessment and Finding ofNo Significant Impact" documents,

which can be read in their entirety in Docket No. PHMSA-2018-0042 in the Federal Docket

Management System (FDMS) located online at www.regulations.gov.

II. Special Permit Inspection Area:

Golden Pass LNG Terminal LLC's Regasification Import Receiving Terminal (GPLNG Terminal)

which is located on the Sabine Neches Waterway in Jefferson County, Texas, is defined as the special

On December 21, 2016, the Federal Energy Regulatory Commission issued an "Order Granting Authorizations UnderSections 3 and 7 of the Natural Gas Act" for GPLNG to site, construct and operate LNG export, facilities.

" Hazardous fluid is defined in § 193.2007 as gas or hazardous liquid. Hazardous liquid is defmed in § 193.2007 as LNG ora liquid that is flammable or toxic. There will be small quantities (1,000 gallons or less) ofpetroleum products (i.e., diesel,gasoline, motor/hydraulic oi) used for construction equipment at the GPLNG Terminal.


permit inspection area.

The special permit waives regulations defined in the "Grant of Special Permit" section of this permit for

the specialpermit inspection area and is applicable during construction of the export project and while

the existing GPLNG Terminal is purged of all hydrocarbons.

III. Conditions:

PHMSA OPS grants this special permit for the specialpermit inspection area subject to the following

conditions:

1) No later than 30 days after the grant of this special permit, GPLNG must provide PHMSA the

plan, drawings, schedule, and procedures for:

a safely purging hydrocarbon from tanks, equipment, and piping in accordance with 49 CFR

193.2517 and American Gas Association's Purging Principles and Practices (incorporated by

reference in 49 CFR 193.2013). The drawings must show that vent locations do not pose a

risk to plant personnel, the public, and possible cascading damages to adjacent components;

b. placing all LNG facilities under a hydrocarbon-free stage and filled completely with nitrogen;

and

c. inspection requirements for nitrogen filled components to ensure these components are

maintained above atmospheric pressure.

2) No later than 30 days after the issuance of this special permit, GPLNG must provide PHMSA the

procedures for continuously monitoring, with details of location and interval, the LNG facility

equipment that is atmospherically exposed (i.e. with "containment broken" for valve and pump

replacement) during hot work activities.

3) Provide procedures and records upon request by PHMSA that demonstrate that GPLNG

continues to comply with the regulations that are not waived by this special permit as specified in

Appendix C.

4) No later than 60 days prior to introducing hazardous fluid into the GPLNG Terminal, GPLNG

must provide PHMSA a list of components, with procedures and schedule, for inspecting and

testing to ensure components meet the original function and integrity, manufacturer

specifications, and all applicable requirements prescribed in 49 CFR 193.2303. All procedures

must include these items:

Special Permit: PIIMSA-2018-0042, Golden Pass LNG Terminal LLC of 22

a the return to service criteria and action items for components that do not meet the procedure

requirements. GPLNG must also provide records for the implementation and documentation

of those procedures;

b. specification for additional tests, per equipment manufacturer's maintenance requirements, to

ensure long term integrity and reliability of the components; and

c. non-destructive tests (NDT) and acceptance criteria to verify that piping and equipment, that

will be exposed to the atmosphere, will maintain the designed minimum wall thickness.

5) All test records must be made available for PHMSA' s review no later than 30 days after tests are

completed.

6) No later than 30 days prior to returning any component to service, a senior executive officer, vice

president or higher, of GPLNG must certify in writing that GPLNG meets all of the conditions

required by this permit. GPLNG must send the certifications required with the completion date,

compliance documentation summary, the required senior executive signature, and date of

signature, to the PHMSA, Associate Administrator for Pipeline Safety, with copies to the Deputy

Associate Administrator, Field Operations; Deputy Associate Administrator, Policy and

Programs; Southwest Region Director; Director, Standards and Rulemaking Division; Director,

Engineering and Research Division; and to the Federal Register Docket (PHMSA 2018-0042) at

www.Regulations.gov.

IV. Limitations:

This special permit is subject to the limitations set forth in 49 CFR 190.341 as well as the following

limitations:

1) PHMSA has the sole authority to make all determinations on whether GPLNG has complied with

the specified conditions ofthis special permit. Failure to comply with any condition of this special

permit may result in revocation of the permit.

2) Any work plans and associated schedules for the GPLNG Regasification Import Receiving

Terminal during the hydrocarbon-free stage are automatically incorporated into this special

permit and are enforceable in the same manner.

3) Failure by GPLNG to submit the certifications required by Condition 6 within the time frames

specified may result in revocation of this special permit.

4) As provided in 49 CFR 190.34 1, PHMSA may issue an enforcement action for failure to comply

with this special permit. The terms and conditions of any corrective action order, compliance


order, or other order applicable to the GPLNG Terminal will take precedence over the terms of

this special permit.

5) If GPLNG sells, merges, transfers, or otherwise disposes of all or part of the assets known as the

GPLNG Terminal, GPLNG must provide PHMSA with written notice of the change within 30

days of the consummation date. In the event of such transfer, PHMSA reserves the right to

revoke, suspend, or modify the special permit if the transfer constitutes a material change in

conditions or circumstances underlying the permit.

6) PHMSA grants this special permit for a term of no more than six (6) years from the date of

issuance. If GPLNG elects to seek renewal of this special permit, GPLNG must submit its

renewal request at least 180 days prior to expiration of the six (6) year period to the PHMSA

Associate Administrator for Pipeline Safety, with copies to the Deputy Associate Administrator,

Field Operations; Deputy Associate Administrator, Policy and Programs; Southwest Region

Director; Director, Standards and Rulemaking Division; and Director, Engineering and Research

Division. All requests for a renewal must include a summary report and must demonstrate that

the special permit is still consistent with pipeline safety. PHMSA may seek additional

information from GPLNG prior to granting any request for special permit renewal.

AUTHORITY: 49 U.S.C. 60118 (c)(1) and 49 CFR 1.97.

JUN 2019Issued in Washington, DC on_________________

Associate Administrator for Pipeline .Safety


Appendix A - Golden Pass LNG Regasification Import Receiving Terminal


I LIQUEFACTION PROJECT SITE

GOE4SSPMML I OLCE PASODICLNU J4T,PROJE EM1 EoPrPoJ

Products I


Appendix B -49 CFR Part 193 Requirements Which GPLNG Seeks Relief


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