ALGONQUIN GAS TRANSMISSION, L.L.C. (SPECTRA ENERGY PARTNERS, LP) — Warning Letter

120101005W_Warning Letter_10182010_text.pdf, page 1Official PDFU.S. Department 820 Bear Tavern Road, Suite 103 Of Transportation West Trenton, NJ 08628 Pipeline and 609.989.2171 Hazardous Materials Safety Administration WARNING LETTER UPS OVERNIGHT DELIVERY October 18, 2010 Mr. Thomas Wooden Northern Division Manager Spectra Energy Corporation 5400 Westheimer Court Houston, TX 77056 CPF 1-2010-1005W Dear Mr. Wooden: On June 22, 2009, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected your pipeline facilities in Westwood, Massachusetts. As a result of the inspection, it appears that you have committed a probable violation of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violation(s) are: 1. §192.709 Transmission lines: Record keeping. (c) A record of each patrol, survey, inspection, and test required by subparts L and M of this part must be retained for at least 5 years or until the next patrol, survey, inspection, or test is completed, whichever is longer.#

120101005W_Warning Letter_10182010_text.pdf, page 2CPF 1-2010-1005W Spectra Energy Corporation (Spectra) did not maintain any documentation that 4 valves were inspected and operated in accordance with §192.745. During the review of valve testing records and drawings of the valve sites, Spectra could not produce any records for Dartmouth Meter Station (Sta. 93) Valve 231-2D2 from 2002 through 2007 and Valves G262-B, G262B-S1 and G262B-S2 in 2007. Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $100,000 for each violation for each day the violation persists up to a maximum of $1,000,000 for any related series of violations. We have reviewed the circumstances and supporting documents involved in this case, and have decided not to conduct additional enforcement action or penalty assessment proceedings at this time. We advise you to correct the item(s) identified in this letter. Failure to do so will result in Spectra being subject to additional enforcement action. No reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF 120101005W. Be advised that all material you submit in response to this enforcement action is subject to being made publicly available. If you believe that any portion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete original document you must provide a second copy of the document with the portions you believe qualify for confidential treatment redacted and an explanation of why you believe the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b). Sincerely, Byron Coy Director, Eastern Region Pipeline and Hazardous Materials Safety Administration Page 2 of 2 120101005W_Warning Letter_10182010#