BUCKEYE PARTNERS, LP — Notice of Probable Violation

party submissionOfficial PDF120135003_Operator Response_02252013.pdf#

120135003_NOPV PCP PCO_01252013_text.pdf, page 1Official PDFU.S. Department Of Transportation Pipeline and 609.989.2171 Hazardous Materials Safety Administration 820 Bear Tavern Road, Suite 103 West Trenton, NJ 08628 NOTICE OF PROBABLE VIOLATION PROPOSED CIVIL PENALTY and PROPOSED COMPLIANCE ORDER OVERNIGHT EXPRESS MAIL January 25, 2013 Thomas S. Collier Vice President, Performance Assurance & Asset Integrity Buckeye Partners, L.P. Five TEK Park 9999 Hamilton Blvd Breinigsville, PA 18031 CPF 1-2013-5003 Dear Mr. Collier: On August 23 and 24, 2011, inspectors from the New York State Department of Public Service (NYSDPS), acting as agents for the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected the Buckeye Partners, L.P.(Buckeye) pipeline facilities in Auburn, NY. As a result of the inspection, it appears that you have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violations are: 1. § 195.410 Line markers. (a) Except as provided in paragraph (b) of this section, each operator shall place and maintain line markers over each buried pipeline in accordance with the following: (1) Markers must be located at each public road crossing, at each railroad crossing, and in sufficient number along the remainder of each buried line so that its location is accurately known. Buckeye failed to adequately place and maintain line markers in sufficient quantity so that the buried pipeline location is accurately known.#

120135003_NOPV PCP PCO_01252013_text.pdf, page 21-2013-5003 At a location north from the intersection of John Glenn Boulevard and Buckley Road, between mileposts MP2 and MPE on line LP806BW, the line markers were not in sufficient number along the buried pipeline so that its location is accurately known. On the north side of Warners Road, there were line markers on each side of the road in the public ROW, however there were no line markers in sufficient number beyond the road crossing of the Buckeye right- of-way (ROW) at MP 14.2 on line AB802VB to accurately determine the location of the buried Buckeye pipeline. After exiting the Warners Road crossing, Buckeye personnel indicated that the buried pipeline continued due north from the Warners Road crossing to beyond a railroad crossing. However, the Buckeye maps that were used during the NYSDPS inspection indicated that the buried pipeline changed direction eastwardly through the front yards of two homes, and eastwardly again beyond the homes before turning north to cross railroad tracks. The location of the buried pipeline at the railroad crossing as indicated by the Buckeye map and as stated by Buckeye personnel differed by over 1,000 feet. The Buckeye personnel agreed that the location of the pipeline markers in the field did not match the pipeline location as indicated on the Buckeye map. The NYSDPS inspectors visited the two locations noted above. The NYSDPS observed the conditions along the ROW and took photographs, and compared Buckeye map information and line marker locations regarding the location of the buried pipeline facilities. 2. § 195.410 Line markers. (a) Except as provided in paragraph (b) of this section, each operator shall place and maintain line markers over each buried pipeline in accordance with the following: (2) The marker must state at least the following on a background of sharply contrasting color: (i) The word “Warning,” “Caution,” or “Danger” followed by the words “Petroleum (or the name of the hazardous liquid transported) Pipeline”, or “Carbon Dioxide Pipeline,” all of which, except for markers in heavily developed urban areas, must be in letters at least 1 inch (25 millimeters) high with an approximate stroke of1/4inch (6.4 millimeters). (ii) The name of the operator and a telephone number (including area code) where the operator can be reached at all times. Buckeye failed to maintain three (3) line markers over Buckeye buried pipeline in accordance with the regulation. The surface of the line markers had deteriorated to the point that there was no legible wording on the line markers to convey the line marker information and wording required by the regulation. The wording “Caution,” or “Danger” followed by the name of the hazardous liquid transported, along with the name of the operator was either missing or completely illegible on the pipeline markers. The NYSDPS inspectors observed the conditions along the ROW and took photographs of the line markers showing the deteriorated surface conditions. The first two observed line markers were located north of John Glenn Boulevard in Liverpool, NY between MP2 and MP3 on line LP806BW. The third line marker was observed on the west side of Breed Road in Camillus, NY at about MP 12.5 on line AB802VB. This violation is a repeat violation of Item 3 of CPF# 3-2007-5026. 3. § 195.412 Inspection of rights-of-way and crossings under navigable waters. (a) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times each calendar year, inspect the surface conditions on or adjacent to each pipeline right-of-way. Methods of inspection include walking, driving, flying or other appropriate means of traversing the right-of-way. 120135003_NOPV_PCP_PCO_01252013 Page 2 of 5#

120135003_NOPV PCP PCO_01252013_text.pdf, page 31-2013-5003 Buckeye failed to adequately inspect the surface conditions on or adjacent to each pipeline right-of-way at intervals not exceeding 3 weeks, but at least 26 times each calendar year. NYSDPS inspection indicated that the operator failed to adequately inspect the surface condition on or adjacent to each pipeline ROW. Buckeye used aerial patrols to inspect the pipeline ROW. Walking patrols were not used. Buckeye failed to maintain and clear the ROW of excessive vegetation growth, including the extent of the tree canopy, to create conditions suitable for the aerial patrol inspection method that they were using. It appeared that there has been uncontrolled growth on some parts of the ROW for a long enough period to allow low growing plants and shrubs to take hold and grow to a height of more than 5 feet. These conditions were observed along the ROW between Buckley Road and Morgan Road, about a ¼ mile in length. The NYSDPS inspectors observed the conditions along the ROW and took photographs. Buckeye personnel stated that the aerial inspection method was the only inspection method used to inspect the surface conditions along the ROW. Proposed Civil Penalty Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000 per violation per day the violation persists up to a maximum of $2,000,000 for a related series of violations. For violations occurring prior to January 4, 2012, the maximum penalty may not exceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a related series of violations. The Compliance Officer has reviewed the circumstances and supporting documentation involved in the above probable violations and has recommended that you be preliminarily assessed a civil penalty of $102,800 as follows: Item number PENALTY 1 $25,000 2 $51,600 3 $26,200 Proposed Compliance Order With respect to item numbers 1, 2, and 3 pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to Buckeye. Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice. Response to this Notice Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. 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). If you do not respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue a Final Order. 120135003_NOPV_PCP_PCO_01252013 Page 3 of 5#

120135003_NOPV PCP PCO_01252013_text.pdf, page 41-2013-5003 Please submit all correspondence in this matter to Byron Coy, PE, Director, PHMSA Eastern Region, 820 Bear Tavern Road, Suite 103, W. Trenton, NJ 08628. Please refer to CPF 1-2013-5003 on each document you submit, and please whenever possible provide a signed PDF copy in electronic format. Smaller files may be emailed to Byron.Coy@dot.gov. Larger files should be sent on a CD accompanied by the original paper copy to the Eastern Region Office. Sincerely, Byron Coy, PE Director, Eastern Region Pipeline and Hazardous Materials Safety Administration Enclosures: Proposed Compliance Order Response Options for Pipeline Operators in Compliance Proceedings Cc: Kevin Speicher, NYSDPS 120135003_NOPV_PCP_PCO_01252013 Page 4 of 5#

120135003_NOPV PCP PCO_01252013_text.pdf, page 51-2013-5003 PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Buckeye Partners, L.P. (Buckeye) a Compliance Order incorporating the following remedial requirements to ensure the compliance of Buckeye with the pipeline safety regulations: 1. 2. 3. 4. 5. In regard to Item Number 1 of the Notice pertaining to Buckeye’s failure to properly install and maintain line markers in sufficient quantity and location so that the location of the buried pipeline is accurately known, Buckeye must re-check and ensure the accurate location of the buried pipeline at the road crossing and along the right-of-way (ROW), for all buried pipelines under the responsibility of Buckeye in a 5 mile radius of the road crossing; and, then install as necessary the appropriate line markers. In regard to Item Number 2 of the Notice pertaining to Buckeye’s failure to maintain line markers as that required line marker information is legible, Buckeye must ensure the adequate conditions of all line markers within a 10 mile radius of the two locations noted in this item. In regard to Item Number 3 of the Notice pertaining to Buckeye’s failure to adequately inspect the surface conditions on or adjacent to each pipeline ROW, Buckeye must implement one or more appropriate method(s)1 that will allow an adequate inspection of the pipeline ROW between Buckley and Morgan Roads, about ¼ mile long. All documentation demonstrating compliance with each of the items outlined in this order must be submitted to the Director, Eastern Region, Pipeline and Hazardous Materials Safety Administration, 820 Bear Tavern Rd, Suite 103, West Trenton, NJ 08628 within 120 days after receipt of the Final Order. It is requested (not mandated) that Buckeye maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Byron E. Coy, P.E., Director, Eastern, Pipeline and Hazardous Materials Safety Administration. It is requested that these costs be reported in two categories: 1) total cost associated with preparation/revision of plans, procedures, studies and analyses, and 2) total cost associated with replacements, additions and other changes to pipeline infrastructure. 1 49 C.F.R. 195.412(a) 120135003_NOPV_PCP_PCO_01252013 Page 5 of 5#

120135003_NOPV PCP PCO_01252013 .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 NOTICE OF PROBABLE VIOLATION PROPOSED CIVIL PENALTY and PROPOSED COMPLIANCE ORDER OVERNIGHT EXPRESS MAIL January 25, 2013 Thomas S. Collier Vice President, Performance Assurance & Asset Integrity Buckeye Partners, L.P. Five TEK Park 9999 Hamilton Blvd Breinigsville, PA 18031 CPF 1-2013-5003 Dear Mr. Collier: On August 23 and 24, 2011, inspectors from the New York State Department of Public Service (NYSDPS), acting as agents for the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected the Buckeye Partners, L.P.(Buckeye) pipeline facilities in Auburn, NY. As a result of the inspection, it appears that you have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violations are: 1. § 195.410 Line markers. (a) Except as provided in paragraph (b) of this section, each operator shall place and maintain line markers over each buried pipeline in accordance with the following: (1) Markers must be located at each public road crossing, at each railroad crossing, and in sufficient number along the remainder of each buried line so that its location is accurately known. Buckeye failed to adequately place and maintain line markers in sufficient quantity so that the buried pipeline location is accurately known.#

120135003_NOPV PCP PCO_01252013 .pdf, page 21-2013-5003 At a location north from the intersection of John Glenn Boulevard and Buckley Road, between mileposts MP2 and MPE on line LP806BW, the line markers were not in sufficient number along the buried pipeline so that its location is accurately known. On the north side of Warners Road, there were line markers on each side of the road in the public ROW, however there were no line markers in sufficient number beyond the road crossing of the Buckeye right- of-way (ROW) at MP 14.2 on line AB802VB to accurately determine the location of the buried Buckeye pipeline. After exiting the Warners Road crossing, Buckeye personnel indicated that the buried pipeline continued due north from the Warners Road crossing to beyond a railroad crossing. However, the Buckeye maps that were used during the NYSDPS inspection indicated that the buried pipeline changed direction eastwardly through the front yards of two homes, and eastwardly again beyond the homes before turning north to cross railroad tracks. The location of the buried pipeline at the railroad crossing as indicated by the Buckeye map and as stated by Buckeye personnel differed by over 1,000 feet. The Buckeye personnel agreed that the location of the pipeline markers in the field did not match the pipeline location as indicated on the Buckeye map. The NYSDPS inspectors visited the two locations noted above. The NYSDPS observed the conditions along the ROW and took photographs, and compared Buckeye map information and line marker locations regarding the location of the buried pipeline facilities. 2. § 195.410 Line markers. (a) Except as provided in paragraph (b) of this section, each operator shall place and maintain line markers over each buried pipeline in accordance with the following: (2) The marker must state at least the following on a background of sharply contrasting color: (i) The word “Warning,” “Caution,” or “Danger” followed by the words “Petroleum (or the name of the hazardous liquid transported) Pipeline”, or “Carbon Dioxide Pipeline,” all of which, except for markers in heavily developed urban areas, must be in letters at least 1 inch (25 millimeters) high with an approximate stroke of1/4inch (6.4 millimeters). (ii) The name of the operator and a telephone number (including area code) where the operator can be reached at all times. Buckeye failed to maintain three (3) line markers over Buckeye buried pipeline in accordance with the regulation. The surface of the line markers had deteriorated to the point that there was no legible wording on the line markers to convey the line marker information and wording required by the regulation. The wording “Caution,” or “Danger” followed by the name of the hazardous liquid transported, along with the name of the operator was either missing or completely illegible on the pipeline markers. The NYSDPS inspectors observed the conditions along the ROW and took photographs of the line markers showing the deteriorated surface conditions. The first two observed line markers were located north of John Glenn Boulevard in Liverpool, NY between MP2 and MP3 on line LP806BW. The third line marker was observed on the west side of Breed Road in Camillus, NY at about MP 12.5 on line AB802VB. This violation is a repeat violation of Item 3 of CPF# 3-2007-5026. 3. § 195.412 Inspection of rights-of-way and crossings under navigable waters. (a) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times each calendar year, inspect the surface conditions on or adjacent to each pipeline right-of-way. Methods of inspection include walking, driving, flying or other appropriate means of traversing the right-of-way. 120135003_NOPV_PCP_PCO_01252013 Page 2 of 5#

120135003_NOPV PCP PCO_01252013 .pdf, page 31-2013-5003 Buckeye failed to adequately inspect the surface conditions on or adjacent to each pipeline right-of-way at intervals not exceeding 3 weeks, but at least 26 times each calendar year. NYSDPS inspection indicated that the operator failed to adequately inspect the surface condition on or adjacent to each pipeline ROW. Buckeye used aerial patrols to inspect the pipeline ROW. Walking patrols were not used. Buckeye failed to maintain and clear the ROW of excessive vegetation growth, including the extent of the tree canopy, to create conditions suitable for the aerial patrol inspection method that they were using. It appeared that there has been uncontrolled growth on some parts of the ROW for a long enough period to allow low growing plants and shrubs to take hold and grow to a height of more than 5 feet. These conditions were observed along the ROW between Buckley Road and Morgan Road, about a ¼ mile in length. The NYSDPS inspectors observed the conditions along the ROW and took photographs. Buckeye personnel stated that the aerial inspection method was the only inspection method used to inspect the surface conditions along the ROW. Proposed Civil Penalty Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000 per violation per day the violation persists up to a maximum of $2,000,000 for a related series of violations. For violations occurring prior to January 4, 2012, the maximum penalty may not exceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a related series of violations. The Compliance Officer has reviewed the circumstances and supporting documentation involved in the above probable violations and has recommended that you be preliminarily assessed a civil penalty of $102,800 as follows: Item number PENALTY 1 $25,000 2 $51,600 3 $26,200 Proposed Compliance Order With respect to item numbers 1, 2, and 3 pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to Buckeye. Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice. Response to this Notice Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. 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). If you do not respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue a Final Order. 120135003_NOPV_PCP_PCO_01252013 Page 3 of 5#

120135003_NOPV PCP PCO_01252013 .pdf, page 41-2013-5003 Please submit all correspondence in this matter to Byron Coy, PE, Director, PHMSA Eastern Region, 820 locument you submit, and please whenever possible provide a signed PDF copy in electronic format Sear Tavern Road, Suite 103, W. Trenton, NJ 08628. Please refer to CPF 1-2013-5003 on eac Smaller files may be emailed to Byron.Coy@dot.gov. Larger files should be sent on a CD accompanied by the original paper copy to the Eastern Region Office. Sincerely, Coy, PE Director, Eastern Region Pipeline and Hazardous Materials Safety Administration Enclosures: Proposed Compliance Order Response Options for Pipeline Operators in Compliance Proceedings Cc: Kevin Speicher, NYSDPS 120135003_NOPV_PCP_PCO_01252013 Page 4 of 5#

120135003_NOPV PCP PCO_01252013 .pdf, page 51-2013-5003 PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Buckeye Partners, L.P. (Buckeye) a Compliance Order incorporating the following remedial requirements to ensure the compliance of Buckeye with the pipeline safety regulations: 1. In regard to Item Number 1 of the Notice pertaining to Buckeye’s failure to properly install and maintain line markers in sufficient quantity and location so that the location of the buried pipeline is accurately known, Buckeye must re-check and ensure the accurate location of the buried pipeline at the road crossing and along the right-of-way (ROW), for all buried pipelines under the responsibility of Buckeye in a 5 mile radius of the road crossing; and, then install as necessary the appropriate line markers. 2. In regard to Item Number 2 of the Notice pertaining to Buckeye’s failure to maintain line markers as that required line marker information is legible, Buckeye must ensure the adequate conditions of all line markers within a 10 mile radius of the two locations noted in this item. 3. In regard to Item Number 3 of the Notice pertaining to Buckeye’s failure to adequately inspect the surface conditions on or adjacent to each pipeline ROW, Buckeye must implement one or more appropriate method(s)1 that will allow an adequate inspection of the pipeline ROW between Buckley and Morgan Roads, about ¼ mile long. 4. All documentation demonstrating compliance with each of the items outlined in this order must be submitted to the Director, Eastern Region, Pipeline and Hazardous Materials Safety Administration, 820 Bear Tavern Rd, Suite 103, West Trenton, NJ 08628 within 120 days after receipt of the Final Order. 5. It is requested (not mandated) that Buckeye maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Byron E. Coy, P.E., Director, Eastern, Pipeline and Hazardous Materials Safety Administration. It is requested that these costs be reported in two categories: 1) total cost associated with preparation/revision of plans, procedures, studies and analyses, and 2) total cost associated with replacements, additions and other changes to pipeline infrastructure. 1 49 C.F.R. 195.412(a) 120135003_NOPV_PCP_PCO_01252013 Page 5 of 5#

120135003_Final Order_06102013_text.pdf, page 1Official PDFJUNE 10, 2013 Mr. Clark Smith President Buckeye Partners, LP Five TEK Park 9999 Hamilton Blvd. Breinigsville, PA 18031 Re: CPF No. 1-2013-5003 Dear Mr. Smith: Enclosed please find the Final Order issued in the above-referenced case. It makes findings of violation, assesses a civil penalty of $102,800, and specifies actions that need to be taken by Buckeye Partners, LP, to comply with the pipeline safety regulations. This is to acknowledge receipt of payment of the full penalty amount, by wire transfer, dated February 26, 2013. When the terms of the compliance order have been completed, as determined by the Director, Eastern Region, this enforcement action will be closed. Service of the Final Order by certified mail is deemed effective upon the date of mailing, or as otherwise provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Jeffrey D. Wiese Associate Administrator for Pipeline Safety Enclosure cc: Mr. Byron Coy, P. E., Director, Eastern Region, OPS Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS Mr. Thomas S. Collier, Vice President, Performance Assurance & Asset, Buckeye Partners , LP CERTIFIED MAIL - RETURN RECEIPT REQUESTED [INSERT RECEIPT NO.]#

120135003_Final Order_06102013_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ ) In the Matter of ) ) Buckeye Partners, LP, ) CPF No. 1-2013-5003 ) Respondent. ) ____________________________________) FINAL ORDER On August 23 and 24, 2011, pursuant to 49 U.S.C. § 60117, inspectors from the New York State Department of Public Service (NYSDPS), as agents for the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and records of Buckeye Partners, LP (Buckeye or Respondent), in Auburn, New York. Buckeye operates approximately 6,164 miles of pipeline in the United States, with 4,141 miles, or 67% of its pipeline system, located in High Consequence Areas. 1 As a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent, by letter dated January 25, 2013, a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Buckeye had violated 49 C.F.R. §§ 195.410 and 195.412 and proposed assessing a civil penalty of $102,800 for the alleged violations. The Notice also proposed ordering Respondent to take certain measures to correct the alleged violations. Buckeye responded to the Notice by letter dated February 25, 2013 (Response). The company did not contest the three allegations of violation and paid the proposed civil penalty of $102,800, as provided in 49 C.F.R. § 190.227. Payment of the penalty serves to close those items in the Notice with prejudice to Respondent and authorizes PHMSA to make findings of violation as to those items. FINDINGS OF VIOLATION In its Response, Buckeye did not contest the allegations that it violated 49 C.F.R. Part 195, as follows: 1 Pipeline Safety Violation Report (Violation Report), (January 25, 2013) (on file with PHMSA), at 1. See § 195.450 for a definition of High Consequence Areas.#

120135003_Final Order_06102013_text.pdf, page 32 Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.410(a)(1), which states: § 195.410 Line markers. (a) Except as provided in paragraph (b) of this section, each operator shall place and maintain line markers over each buried pipeline in accordance with the following: (1) Markers must be located at each public road crossing, at each railroad crossing, and in sufficient number along the remainder of each buried line so that its location is accurately known. The Notice alleged that Respondent violated 49 C.F.R. § 195.410(a)(1) by failing to adequately place and maintain line markers in sufficient quantity over each buried pipeline so that its location is accurately known. Specifically, the Notice alleged that Buckeye failed to place sufficient line markers as follows: (1) at a location north of the intersection of John Glenn Boulevard and Buckley Road between Mile Post (MP) 2 and MPE on line LP806BW; (2) on the north side of Warners Road beyond the road crossing of the Buckeye right-of-way at MP 14.2 on line AB802VB; and, (3) to accurately match the pipeline location between Warners Road and a railroad crossing, as shown on the company’s own maps. Respondent did not contest these allegations of violation.2 Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 195.410(a)(1) by failing to adequately place and maintain line markers in sufficient quantity along the company’s buried pipeline so that its location is accurately known. Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.410(a)(2), which states: § 195.410 Line markers. (a) Except as provided in paragraph (b) of this section, each operator shall place and maintain line markers over each buried pipeline in accordance with the following: (1) . . . (2) The marker must state at least the following on a background of sharply contrasting color: (i) The word “Warning,” “Caution,” or “Danger” followed by the words “Petroleum (or the name of the hazardous liquid transported) Pipeline”, or “Carbon Dioxide Pipeline,” all of which, except for markers in heavily developed urban areas, must be in letters at least 1 inch (25 millimeters) high with an approximate stroke of ¼ inch (6.4 millimeters). (ii) The name of the operator and the telephone number (including area code) where the operator can be reached at all times. The Notice alleged that Respondent violated 49 C.F.R. § 195.410(a)(2) by failing to maintain properly three line markers over its buried pipeline in Liverpool, New York, and Camillus, New 2 In its Response, Buckeye asserted that it did not contest this probable violation, but stated that when it later checked its maps, they accurately depicted the location of the buried pipelines. See Response at 1. Buckeye, however, failed to provide any evidence to substantiate this claim.#

120135003_Final Order_06102013_text.pdf, page 43 York. Specifically, the Notice alleged that at three different locations, the NYSDPS inspectors observed Buckeye line markers that had deteriorated to the point there was no legible wording on the markers to convey all of the information required by the regulation. Respondent did not contest these allegations of violation. Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 195.410(a)(2) by failing to maintain three line markers over its buried pipeline in Liverpool, New York, and Camillus, New York. Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.412(a), which states: § 195.412 Inspections of rights-of-way and crossings under navigable waters. (a) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times each calendar year, inspect the surface conditions on or adjacent to each pipeline right-of-way. Methods of inspection include walking, driving, flying or other appropriate means of traversing the right-of-way. The Notice alleged that Respondent violated 49 C.F.R. § 195.412(a) by failing to adequately inspect the surface conditions on or adjacent to each pipeline right-of-way at intervals not exceeding three weeks, but at least 26 times each calendar year. Specifically, the Notice alleged that Buckeye failed to maintain and clear the right-of-way of excessive vegetation growth, including the extent of the tree canopy. As a result, Respondent could not adequately inspect the pipeline by aerial inspection, the only method that it used. Respondent did not contest this allegation of violation. Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 195.412(a) by failing to adequately inspect the surface conditions on or adjacent to each pipeline right-of-way at intervals not exceeding three weeks, but at least 26 times each calendar year. These findings of violation will be considered prior offenses in any subsequent enforcement action taken against Respondent. ASSESSMENT OF PENALTY Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed $200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any related series of violations.3 In determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature, circumstances, and gravity of the violation, including adverse impact on the environment; the 3 The Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011, Pub. L. No. 112-90, § 2(a)(1), 125 Stat. 1904, effective January 3, 2012, increased the maximum civil penalty liability for violating a pipeline safety standard to $200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for a related series of violations.#

120135003_Final Order_06102013_text.pdf, page 54 degree of Respondent’s culpability; the history of Respondent’s prior offenses; and any effect that the penalty may have on its ability to continue doing business; and the good faith of Respondent in attempting to comply with the pipeline safety regulations. In addition, I may consider the economic benefit gained from the violation without any reduction because of subsequent damages, and such other matters as justice may require. The Notice proposed a total civil penalty of $102,800 for the violations cited above. Item 1: The Notice proposed a civil penalty of $25,000 for Respondent’s violation of 49 C.F.R. § 195.410(a)(1), for failing to adequately place and maintain line markers in sufficient quantity so that the location of its buried pipeline is accurately known. Buckeye paid the proposed penalty, which serves to close this Item with prejudice to Respondent. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $25,000 for violation of 49 C.F.R. § 195.410(a)(1). Item 2: The Notice proposed a civil penalty of $51,600 for Respondent’s violation of 49 C.F.R. § 195.410(a)(2), for failing to maintain properly three line markers over its buried pipeline in Liverpool, New York, and Camillus, New York. The penalty reflected that the violation was a repeat offense from an earlier enforcement action, CPF No. 3-2007-5026. Buckeye paid the proposed penalty, which serves to close this Item with prejudice to Respondent. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $51,600 for violation of 49 C.F.R. § 195.410(a)(2). Item 3: The Notice proposed a civil penalty of $26,200 for Respondent’s violation of 49 C.F.R. § 195.412(a), for failing to adequately inspect the surface conditions on or adjacent to each pipeline right-of-way at intervals not exceeding three weeks, but at least 26 times each calendar year. Buckeye paid the proposed penalty, which serves to close this Item with prejudice to Respondent. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $26,200 for violation of 49 C.F.R. § 195.412(a). In summary, having reviewed the record and considered the assessment criteria for each of the Items cited above, I assess Respondent a total civil penalty of $102,800, which has been paid in full by Buckeye. COMPLIANCE ORDER The Notice proposed a compliance order with respect to Items 1, 2, and 3 in the Notice for violations of 49 C.F.R. §§ 195.410 and 195.412. Under 49 U.S.C. § 60118(a), each person who engages in the transportation of gas or who owns or operates a pipeline facility is required to comply with the applicable safety standards established under chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions to ensure compliance with the pipeline safety regulations applicable to its operations: 1. With respect to the violation of § 195.410(a)(1) (Item 1), Respondent must re-#

120135003_Final Order_06102013_text.pdf, page 65 check and ensure the accurate location of its buried pipeline at the road crossing and along the Buckeye right-of-way at MP 14.2 on line AB802VB, and for all buried pipelines under the responsibility of Buckeye within a five-mile radius of the road crossing, and then install, as necessary, appropriate line markers. 2. With respect to the violation of § 195.410(a)(2) (Item 2), Respondent must ensure the adequate condition of all line markers within a 10-mile radius of the two locations noted in this Item. 3. With respect to the violation of § 195.412(a) (Item 3), Respondent must implement one or more appropriate methods that will allow an adequate inspection of the pipeline right-of-way between Buckley and Morgan, about ¼ mile long. 4. All documentation demonstrating compliance with each of the items outlined in this order must be submitted to the Director, Eastern Region, Pipeline and Hazardous Materials Safety Administration, 820 Bear Tavern Rd., Suite 103, West Trenton, NJ 08628, within 120 days after the Final Order. 5. It is requested (not mandated) that Buckeye maintain documentation of the safety improvement costs associated with fulfilling the Compliance Order and submit the total to Byron E. Coy, P.E., Director, Eastern Region, Pipeline and Hazardous Materials Safety Administration. It is requested that these costs be reported in two categories: 1) total cost associated with preparation/revision of plans, procedures, studies and analyses; and 2) total costs associated with replacements, additions and other changes to pipeline infrastructure. The Director may grant an extension of time to comply with any of the required items upon a written request timely submitted by the Respondent and demonstrating good cause for an extension. Failure to comply with this Order may result in the administrative assessment of civil penalties not to exceed $200,000 for each violation for each day the violation continues or in referral to the Attorney General for appropriate relief in a district court of the United States. The terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R. § 190.5. ___________________________________ __________________________ Jeffrey D. Wiese Date Issued Associate Administrator for Pipeline Safety#

120135003_Closure Letter_11132013_text.pdf, page 1Official PDFU.S. Department Of Transportation Pipeline and 609.989.2171 Hazardous Materials Safety Administration 820 Bear Tavern Road, Suite 103 West Trenton, NJ 08628 OVERNIGHT EXPRESS MAIL November 13, 2013 Mr. Thomas S. Collier, VP Performance Assurance & Asset Integrity Buckeye Partners, L.P. Five TEK Park 9999 Hamilton Boulevard Breinigsville, PA 18031 CPF 1-2013-5003 Dear Mr. Collier: On June 10, 2013, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to Buckeye Partners, L.P., a Final Order for case 1-2013-5003. This Order included a Compliance Order and Civil Penalty assessment. Based on our review of the documentation you provided, and confirmation of payment of the civil penalty, it has been determined that you have complied with the terms of this Order. Accordingly, this case is now closed and no further action is contemplated with respect to the matters involved in this case. Thank you for your cooperation in this matter. Sincerely, Byron Coy, PE Director, Eastern Region Pipeline and Hazardous Materials Safety Administration Cc: NYS-DPS: Mr. Kevin Speicher#