TRI-STATES NGL PIPELINE LLC — Notice of Probable Violation

Final Order Tri-State NGL Pipeline CPF No 2-2005-5008.pdf, page 1Official PDFU.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 400 Seventh Street, S.W. Washington, D.C. 20590 NOV 1 5 2005 Mr. Jim Lamanna BP Pipelines (North America), Inc. 28 100 Torch Parkway Warrenville, IL 60555 RE: Tri-States NGL Pipeline CPF No. 2-2005-5008 Dear Mr. Lamanna: Enclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the above-referenced case. It makes a finding of violation and assesses a civil penalty of $5,000. The penalty payment terms are set forth in the Final Order. This enforcement action closes automatically upon payment. Your receipt ofthe Final Order constitutes service of that document under 49 C.F.R. § 190.5. Sincerely, James Reynolds Pipeline Compliance Registry Office of Pipeline Safety Enclosure cc: Mr. Gerald E Schau, HSSE & Integrity Manager, BP Pipelines (North America), Inc. Ms. Linda Daugherty, Director, Southern Region, OPS CERTIFIED MAIL - RETURN RECEIPT REQUESTED#

Final Order Tri-State NGL Pipeline CPF No 2-2005-5008.pdf, page 2DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 In the Matter of 1 1 BP Pipelines (North America), Inc., ) CPF NO. 2-2005-5008 Tri-States NGL Pipeline, L.L.C. 1 Respondent. FINAL ORDER On December 14-17,2004, pursuant to 49 U.S.C. § 601 17, arepresentative of the Office of Pipeline Safety (OPS), Southern Region conducted an on-site pipeline safety inspection of Tri-States NGL Pipeline facilities and records in Alabama and Mississippi, operated by BP Pipelines (North America), Inc.. As a result of the inspection, the Director, Southern Region, OPS, issued to Respondent, by letter dated May 11, 2005, a Notice of Probable Violation and Proposed Civil Penalty (Notice). In accordance with 49 C.F.R. 5190.207, the Notice proposed finding that Respondent had violated 49 C.F.R. 5 195.402 and proposed assessing a civil penalty of $5,000 for the alleged violation. Respondent failed to respond within 30 days after it had received the Notice. Respondent's failure to respond constitutes a waiver of Respondent's right to contest the allegations in the Notice and authorizes the entry of this Final Order. FINDINGS OF VIOLATION (Uncontested) Respondent did not contest the alleged violation in the Notice. Accordingly, I find that Respondent violated 49 C.F.R. Part195, as more fully described in the Notice: 49 C.F.R. tj 195.402(a) and (c)(4)- failure to include in its O&M manual written procedures for conducting normal operations and maintenance activities and handling abnormal operations and emergencies procedures to determine and designate which pipeline facilities are located in areas that would require an immediate response by the operator to prevent hazards to the public if the facilities failed or malfunctioned. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent.#

Final Order Tri-State NGL Pipeline CPF No 2-2005-5008.pdf, page 3ASSESSMENT OF PENALTY Under 49 U.S.C. 4 60122, Respondent is subject to a civil penalty not to exceed $100,000 per violation for each day of the violation up to a maximum of $1,000,000 for any related series of violations. The Notice proposed a total civil penalty of $5,000 for violations of 49 C.F.R. Part 195. 49 U.S.C. $60122 and 49 C.F.R. 5 190.225 require that, in determining the amount of the civil penalty, I consider the following criteria: nature, circumstances, and gravity of the violation, degree of Respondent's culpability, history of Respondent's prior offenses, Respondent's ability to pay the penalty, good faith by Respondent in attempting to achieve compliance, the effect on Respondent's ability to continue in business, and such other matters as justice may require. The Notice proposed a civil penalty of $5,000, as Respondent failed to designate in its 0 & M procedures which pipeline facilities are located in areas that would require an immediate response by the operator to prevent hazards to the public if the facilities failed or malfunctioned. Respondent did not contest the allegation of violation. The primary objective of the Federal pipeline safety standards is safe operation of pipeline systems. Failure to comply with 49 C.F.R. 8 l95.402(~)(4) could cause an untimely response by Respondent's personnel or exacerbate problems during normal operations, abnormal operations or in an emergency, resulting in an increase in the risk of harm to Respondent's personnel and the public. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $5,000 for violation of 49 C.F.R. $195.402(~)(4). Payment of the civil penalty must be made within 20 days of service. Payment may be made by sending a certified check or money order (containing the CPF Number for this case) payable to "U.S. Department of Transportation" to the Federal Aviation Administration, Mike Monroney Aeronautical Center, Financial Operations Division (AMZ-120), P.O. Box 25082, Oklahoma City, OK 73125. Federal regulations (49 C.F.R. 8 89.21(b)(3)) also permit this payment to be made by wire transfer, through the Federal Reserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions are contained in the enclosure. Questions concerning wire transfers should be directed to: Financial Operations Division (AMZ- 120), Federal Aviation Administration, Mike Monroney Aeronautical Center, P.O. Box 25082, Oklahoma City, OK 73 125; (405) 954-4719. Failure to pay the $5,000 civil penalty will result in accrual of interest at the current annual rate in accordance with 3 1 U.S.C. $ 3717,3 1 C.F.R. 4 901.9 and 49 C.F.R. $89.23. Pursuant to those same authrities, a !zte pena!ty charge of six percent (6%) per aisiiil will be charged if payment is not made within 1 10 days of service. Furthermore, failure to pay the civil penalty may result in referral of the matter to the Attorney General for appropriate action in a United States District Court.#

Final Order Tri-State NGL Pipeline CPF No 2-2005-5008.pdf, page 4Under 49 C.F.R. 5 190.21 5, Respondent has a right to Petition for Reconsideration of this Final Order. The petition must be received within 20 days of Respondent's receipt of this Final Order and must contain a brief statement of the issue(s). The filing of a petition automatically stays the payment of any civil penalty assessed. However, if Respondent submits payment for the civil penalty, the Final Order becomes the final administrative decision and the right to Petition for Reconsideration is waived. The terms and conditions of this Final Order are effective upon recyit. NOV 1 5 2005 Date Issued#

220055008_final order_11152005_text.pdf, page 1Official PDFU S Department of Transportation Pipeline and Hazardous Materials Safety Administration 400 Seventh Street, S W Washington, O C 20590 NOV 15 2005 Mr Jim Lamanna BP Pipehnes (North Amenca), Inc 28100 Torch Parkway Warrenvtlle, IL 60555 RE Tn-States NGL Pipehne CPF No 2-2005-5008 Dear Mr Lamanna Enclosed is the Final Order issued by the Associate Administrator for Pipehne Safety in the above-referenced case It makes a finding of violation and assesses a civil penalty of $5, 000 The penalty payment terms are set forth in the Final Order This enforcement action closes automatically upon payment Your receipt of the Final Order constitutes service of that document under49C FR $ 190 5 Smcerely, James Reynolds Pipeline Comphance Registry Office of Pipeline Safety Enclosure cc Mr Gerald E Schau, HSSE & Integnty Manager, BP Pipelines (North Amenca), Inc Ms Linda Daugherty, Director, Southern Region, OPS CERTIFIED MAIL - RETURN RECEIPT RE UESTED#

220055008_final order_11152005_text.pdf, page 2DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D. C. 20590 In the Matter of BP Pipehnes (North America), Inc, Trt-States NGL Pipetroe, L L C Respondent. ) ) ) CPF No. 2-2005-5008 ) FINAL ORDER On December 14-17, 2004, pursuant to 49 U S C Il 60117, a representative of the Office of Pipehne Safety (OPS), Southern Region conducted an on-site pipehne safety inspection of Tn-States NGL Pipehne facihties and records in Alabama and Mississippi, operated by BP Pipelines (North Amenca), Inc As a result of the inspection, the Director, Southern Region, OPS, issued to Respondent, by letter dated May 11, 2005, a Notice of Probable Violation and Proposed Civil Penalty (Notice) In accordance with 49 C F R $190 207, the Notice proposed finding that Respondent had violated 49 C F R I'l 195 402 and proposed assessing a civil penalty of $5, 000 for the alleged violation Respondent failed to respond within 30 days after it had received the Notice Respondent's fiulure to respond constitutes a waiver of Respondent's nght to contest the allegations in the Notice and authonzes the entry of this Final Order FINDINGS OF VIOLATION (Uncontested) Respondent did not contest the alleged violation in the Notice Accordingly, I find that Respondent violated 49 C F R Part195, as more fully descnbed in the Notice 49 C F R It 195 402(a) and (c)(4)- failure to include in its OkM manual wntten procedures for conducting normal operations and maintenance activities and handhng abnormal operations and emergencies procedures to determine and designate which pipeline facihties are located in areas that would require an immediate response by the operator to prevent hazards to the pubhc if the facihties failed or malfunctioned This finding of violation will be considered a pnor offense in any subsequent enforcement action taken against Respondent.#

220055008_final order_11152005_text.pdf, page 3ASSESSMENT OF PENALTY Under 49 U S C tt 60122, Respondent is sub)ect to a civd penalty not to exceed $100, 000 per violation for each day of the violation up to a maximum of $1, 000, 000 for any related senes of violations The Notice proposed a total civil penalty of $5, 000 for violations of 49 C F R Part 195 49 U S C tl 60122 and 49 C F R $ 190 225 reqmre that, indetermuung the amount ofthe civil penalty, I consider the following criteria nature, circumstances, and gravity of the violation, degree of Respondent's culpability, lustory of Respondent's pnor offenses, Respondent's ability to pay the penalty, good fiuth by Respondent in attempting to achieve compliance, the effect on Respondent's abdity to continue in business, and such other matters as )ustice may require The Notice proposed a civil penalty of $5, 000, as Respondent failed to designate in its 0 2 M procedures which pipehne facdities are located in areas that would require an immediate response by the operator to prevent hazards to the public if the facihties failed or malfunctioned Respondent did not contest the allegation of violation The pnmary ob)ective of the Federal pipeline safety standards is safe operation ofpipehne systems Failure to comply with 49 C F R t1195 402(c)(4) could cause an untimely response by Respondent's personnel or exacerbate problems during normal operations, abnormal operations or in an emergency, resultmg m an increase in the risk of harm to Respondent's personnel and the public Accordingly, having reviewed the record and considered the assessment cnteria, I assess Respondent a civil penalty of $5, 000 for violation of 49 C F R t1195 402(c)(4) Payment of the civil penalty must be made witlun 20 days of service Payment may be made by sending a certified check or money order (contauung the CPF Number for this case) payable to "U S Department of Transportation" to the Federal Aviation Administration, Mike Monroney Aeronautical Center, Fmancial Operations Division (AMZ-120), P 0 Box 25082, Oklahoma City, OK 73125 Federal regulations (49 C F R $ 89 21(b)(3)) also permit this payment to be made by wire transfer, through the Federal Reserve Communications System (Fedwire), to the account of the U S Treasury Detailed instructions are contained in the enclosure Questions conceriung wire transfers should be directed to Financial Operations Division (AMZ-120), Federal Aviation Adnunistration, Mike Monroney Aeronautical Center, P 0 Box 25082, Oklahoma City, OK 73125, (405) 954-4719 Failure to pay the $5, 000 civil penalty will result in accrual of interest at the current annual rate in accordance with 31 U S C $ 3717, 31 C F R t1 '901 9 and 49 C F R $ 89 23 Pursuant to those same authorities, a late pena! ty cage of six percent (6%) per annum wdl be charged if payment is not made within 110 days of service Furthermore, failure to pay the civil penalty may result in referral of the matter to the Attorney General for appropriate action in a United States Distnct Court#

220055008_final order_11152005_text.pdf, page 4Under 49 C F R $ 190 215, Respondent has a nght to Petition for Reconsideration of this Final Order The petition must be received wtthtn 20 days of Respondent's receipt of this Final Order and must contain a bnef statement of the tssue(s) The filing of a petition automatically stays the payment of any civil penalty assessed However, if Respondent submits payment for the civil penalty, the Final Order becomes the final admtntstrahve decision and the right to Petition for Reconsideration is waived The terms and conditions of this Final Order are effective upon recei t ace erard Date Issued A oc te Admiiustrator for ipehne Safety#