HONEOYE STORAGE CORP — Warning Letter

120120002W_Warning Letter_04022012_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 OVERNIGHT EXPRESS MAIL April 2, 2012 Mr. James Smoot, Vice President Honeoye Storage Corporation 4511 Egypt Road Canandaigua, NY 14424 CPF 1-2012-0002W Dear Mr. Smoot: During April and May 2011, State Inspectors from the New York State Department of Public Service (NYS DPS), acting as Agent for the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code, inspected Honeoye Storage Corporation (Honeoye) facilities in Canandaigua, New York. 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 violations are: 1. § 192.179 Transmission line valves. (b) Each sectionalizing block valve on a transmission line, other than offshore segments, must comply with the following: (1) The valve and the operating device to open or close the valve must be readily accessible and protected from tampering and damage During the NYS DPS field inspections of Honeoye facilities on April 27, 2011, Honeoye valves numbered A2 and A7 did not have any mechanism that would prevent tampering and/or damage (valves were not locked). During a re-inspection of those facilities by the NYS DPS representatives the following week in early May 2011, both valves were observed to be secured with a chain and lock.#

120120002W_Warning Letter_04022012_text.pdf, page 2CPF 1-2012-0002W 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 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 items identified in this letter. Failure to do so will result in Honeoye Storage Corporation 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 1-2012-0002W. 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 E. Coy, PE Director, Eastern Region Pipeline and Hazardous Materials Safety Administration Cc: Kevin Speicher NYS DPS 120120002W_WL_04022012 Page 2 of 2#