diff --git a/modules/openfast-library/src/FAST_Subs.f90 b/modules/openfast-library/src/FAST_Subs.f90
index 62530aab12..c7b1cb9df5 100644
--- a/modules/openfast-library/src/FAST_Subs.f90
+++ b/modules/openfast-library/src/FAST_Subs.f90
@@ -834,7 +834,18 @@ SUBROUTINE FAST_InitializeAll( t_initial, p_FAST, y_FAST, m_FAST, ED, BD, SrvD,
       CALL HydroDyn_Init( Init%InData_HD, HD%Input(1), HD%p,  HD%x(STATE_CURR), HD%xd(STATE_CURR), HD%z(STATE_CURR), &
                           HD%OtherSt(STATE_CURR), HD%y, HD%m, p_FAST%dt_module( MODULE_HD ), Init%OutData_HD, ErrStat2, ErrMsg2 )
          CALL SetErrStat(ErrStat2,ErrMsg2,ErrStat,ErrMsg,RoutineName)
-
+      ! 1) Nullify the HD Init Input pointers (do this now in case HD_Init failed)
+      ! 2) Now, when HydroDyn_DestroyInitInput is called and hence SeaState_DestroyInitOutput, we will not deallocate data which is still in use because the is associated test will fail.
+      nullify(Init%InData_HD%WaveElevC0)
+      nullify(Init%InData_HD%WaveDirArr)
+      nullify(Init%InData_HD%WaveDynP)   
+      nullify(Init%InData_HD%WaveAcc)    
+      nullify(Init%InData_HD%WaveVel)      
+      nullify(Init%InData_HD%WaveTime)
+      nullify(Init%InData_HD%WaveElev1)
+      nullify(Init%InData_HD%WaveElev2)
+  
+      ! If HD_Init failed, cleanup and exit 
       IF (ErrStat >= AbortErrLev) THEN
          CALL Cleanup()
          RETURN
@@ -862,19 +873,6 @@ SUBROUTINE FAST_InitializeAll( t_initial, p_FAST, y_FAST, m_FAST, ED, BD, SrvD,
          if (allocated(Init%OutData_HD%WriteOutputHdr)) y_FAST%Lin%Modules(MODULE_HD)%Instance(1)%NumOutputs = size(Init%OutData_HD%WriteOutputHdr)
       end if
 
-         ! 1) Nullify the HD Init Input pointers
-         ! 2) Now, when HydroDyn_DestroyInitInput is called and hence SeaState_DestroyInitOutput, we will not deallocate data which is still in use because the is associated test will fail.
-    
-         nullify(Init%InData_HD%WaveElevC0)
-         nullify(Init%InData_HD%WaveDirArr)
-         nullify(Init%InData_HD%WaveDynP)   
-         nullify(Init%InData_HD%WaveAcc)    
-         nullify(Init%InData_HD%WaveVel)      
-         nullify(Init%InData_HD%WaveTime)
-         nullify(Init%InData_HD%WaveElev1)
-         nullify(Init%InData_HD%WaveElev2)
-
-   
       IF (ErrStat >= AbortErrLev) THEN
          CALL Cleanup()
          RETURN