COLONIAL PIPELINE CO — Notice of Probable Violation

case documentOfficial PDF220205001_NOPV PCO_12152020.pdf#

case documentOfficial PDF220205001_NOPV PCO_12152020_text.pdf#

party submissionOfficial PDF220205001_Operator Hearing Request Withdrawn (PHC-Hearing Scheduled Canceled)_05042021_(18-162643S).pdf#

party submissionOfficial PDF220205001_Operator Response to Notice and Request for Settlement Conference and Request for Hearing_02122021.pdf#

220205001_Consent Agreement and Order_05042021_(18-162643S)_text.pdf, page 1Official PDFMay 4, 2021 Mr. Joseph Blount President and Chief Executive Officer Colonial Pipeline Company 1185 Sanctuary Parkway Suite 100 Alpharetta, Georgia 30009 CPF No. 2-2020-5001 Dear Mr. Blount: Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Colonial Pipeline Company which was executed on May 3, 2021. Service of the Consent Order and Consent Agreement by electronic mail is deemed effective upon the date of transmission, or as otherwise provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Alan K. Mayberry Associate Administrator for Pipeline Safety Enclosure: Order and Consent Agreement cc: Mr. James Urisko, Director, Southern Region, Office of Pipeline Safety, PHMSA Mr. Mark Piazza, Manager, Pipeline Compliance and R&D, Colonial Pipeline Company, mpiazza@colpipe.com Ms. Catherine Little, Troutman Pepper, Counsel for Colonial Pipeline Company, catherine.little@troutman.com CONFIMRATION OF RECEIPT REQUESTED#

220205001_Consent Agreement and Order_05042021_(18-162643S)_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 Colonial Pipeline Company, Respondent. ) ) ) ) ) ) ) CPF No. 2-2020-5001 CONSENT ORDER By letter dated December 15, 2020, the Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety, issued a Notice of Probable Violation and Proposed Compliance Order (Notice) to Colonial Pipeline Company (Colonial). In response to the Notice, Colonial requested a hearing and an opportunity to discuss settlement outside of the hearing, whereupon the parties engaged in good-faith settlement discussions that have resulted in the Consent Agreement attached to this Order that settles all of the allegations in the Notice. Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this Order. Colonial is hereby ordered to comply with the terms of the Consent Agreement, effective immediately. Pursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent Order may result in the assessment of civil penalties as set forth in 49 C.F.R. § 190.223. The terms and conditions of this Consent Order are effective upon service in accordance with 49 C.F.R. § 190.5. May 4, 2021 ___________________________________ __________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety#

220205001_Consent Agreement and Order_05042021_(18-162643S)_text.pdf, page 31 U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ ) In the Matter of ) ) Colonial Pipeline Company, ) CPF No. 2-2020-5001 ) Respondent. ) ) CONSENT AGREEMENT From January 14, 2019 to February 7, 2020, pursuant to 49 U.S.C. § 60117, representatives of 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 Colonial Pipeline Company’s (Colonial or Respondent) pipeline system located in Alabama, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, and Texas. As a result of the inspection, the Director, Southern Region, OPS (Director), issued to Respondent, by letter dated December 15, 2020, a Notice of Probable Violation and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice alleged Colonial had committed four probable violations, including violations of 49 C.F.R. §§ 195.61(b), 195.262(b)(2), 195.412(b), and 195.567(c), and proposed ordering Respondent to take certain measures to correct the alleged violation of § 195.262(b)(2). Colonial requested additional time to respond to the Notice on December 22, 2020. PHMSA granted the extension on December 31, 2020. Colonial responded to the Notice by letter dated February 2, 2021 (Response). The company did not contest the allegations regarding Items 1, 3, and 4 of the Notice. The Response did contest the allegation of violation in Item 2 of the Notice, requested a settlement conference with the Southern Region, and reserved the company’s right to a hearing regarding that Item. On March 11, 2021, April 14, 2021, and again on April 23, 2021, Colonial and PHMSA (collectively, the Parties), met to discuss a possible resolution of the case. During the meetings, an agreement was reached that resolves all of the issues in the Notice. Having agreed that settlement of this proceeding will avoid further administrative proceedings or litigation and will serve the public interest by promoting safety and protection of the environment, pursuant to 49 C.F.R. Part 190, and upon consent and agreement of the Colonial and PHMSA, the Parties hereby agree as follows:#

220205001_Consent Agreement and Order_05042021_(18-162643S)_text.pdf, page 42 I. General Provisions 1. Respondent acknowledges that as the operator of the Colonial system in Texas, Louisiana, Mississippi, Alabama, Georgia, Tennessee, South Carolina, Virginia, Maryland, Delaware, Pennsylvania, and New Jersey, Respondent and its Colonial Pipeline system are subject to the jurisdiction of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder. For purposes of this Agreement, Respondent acknowledges that it received proper notice of PHMSA's action in this proceeding and that the Notice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq., and the regulations and orders issued thereunder. 2. After Colonial returns this signed Agreement to PHMSA, the Agency’s representative will present it to the Associate Administrator for Pipeline Safety, recommending that the Associate Administrator adopt the terms of this Agreement by issuing an administrative order (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement constitute an offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate Administrator will issue a Consent Order incorporating the terms of this Agreement. 3. Respondent consents to the issuance of the Consent Order, and hereby waives any further procedural requirements with respect to its issuance. Respondent waives all rights to contest the adequacy of notice, or the validity of the Consent Order or this Agreement, including all rights to administrative or judicial hearings or appeals, except as set forth herein. 4. This Agreement shall apply to and be binding upon PHMSA and Colonial, its officers, directors, and employees, and its successors, assigns, or other entities or persons otherwise bound by law. Respondent agrees to provide a copy of this Agreement and any incorporated work plans and schedules to all of Colonial’s officers, employees, and agents whose duties might reasonably include compliance with this Agreement. 5. This Agreement constitutes the final, complete and exclusive agreement and understanding between the Parties with respect to the settlement embodied in this Agreement. The Parties acknowledge that there are no representations, agreements or understandings relating to settlement other than those expressly contained in this Agreement, except that the terms of this Agreement may be construed by reference to the Notice. 6. Nothing in this Agreement affects or relieves Respondent of its responsibility to comply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to bring enforcement actions against Colonial pursuant to the Federal pipeline safety laws, the regulations and orders issued thereunder, or any other provision of Federal or State law. 7. For all transfers of ownership or operating responsibility of Colonial’s pipeline system which occur while this Agreement is in effect, Colonial will provide a copy of this Agreement to the prospective transferee at least 30 days prior to such transfer. Colonial will provide written notice of the transfer to the PHMSA Southern Regional Director no later than 60 days after the transfer occurs.#

220205001_Consent Agreement and Order_05042021_(18-162643S)_text.pdf, page 53 8. This Agreement does not waive or modify any Federal, State, or local laws or regulations that are applicable to Respondent’s pipeline systems. This Agreement is not a permit, or a modification of any permit, under any Federal, State, or local laws or regulations. Colonial remains responsible for achieving and maintaining compliance with all applicable Federal, State, and local laws, regulations and permits. 9. This Agreement does not create rights in, or grant any cause of action to, any third party not party to this Agreement. The U.S. Department of Transportation is not liable for any injuries or damages to persons or property arising from acts or omissions of Respondent or its officers, employees, or agents carrying out the work required by this Agreement. Colonial agrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents, and representatives from any and all causes of action arising from any acts or omissions of Respondent or its contractors in carrying out any work required by this Agreement. 10. This Agreement does not constitute a finding of violation of any Federal law or regulation and may not be used in any civil proceeding of any kind as evidence or proof of any fact, fault or liability, or as evidence of a violation of any law, rule, regulation or requirement, except in a proceeding to enforce the provisions of this Agreement or in future PHMSA enforcement actions. 11. Upon issuance of the Consent Order, the Parties agree to the terms in this Agreement and its appendices, which are incorporated herein. II. Items 1, 3 and 4 of the Notice: 12. Allegations of Violation - §§ 195.61(b), 195.412(b), and 195.567(c): With respect to Items 1, 3 and 4 of the Notice, the Director, Southern Region, Colonial does not contest but neither admits nor denies any allegation or conclusion in the Notice. As such, Items 1, 3 and 4 of the Notice are issued as warning items, as proposed in the Notice. PHMSA advises Colonial to promptly correct these items. Failure to do so may result in additional enforcement action. III. Item 2 of the Notice: 13. Allegation of Violation - § 195.262(b)(2): With respect to Item 2 of the Notice, the Parties agree that the facts as alleged in the Notice are true and correct, but Colonial neither admits nor denies that it violated the federal pipeline safety regulations. The Director, Southern Region has reviewed additional information provided by Colonial and discussed with Colonial the important safety implications of the issues raised by this allegation. PHMSA agrees to issue Item 2 as a warning item on the condition that Colonial completes the additional compliance actions outlined below. The Parties agree that the facts as alleged in the Notice may be considered by PHMSA as a prior offense in any future enforcement action taken against Colonial. If the compliance actions incorporated into this Agreement are not completed, PHMSA reserves the right to take further enforcement action, including issuing a finding of violation and assessing a civil penalty.#

220205001_Consent Agreement and Order_05042021_(18-162643S)_text.pdf, page 64 14. Proposed Compliance Order: The Proposed Compliance Order included in the Notice is withdrawn. Respondent agrees to complete the corrective actions specified in Appendix A of this Agreement, titled “Work Plan for Identification, Inspection, and Safe Use of Emergency Shut Down Devices in Relevant Pumping Stations throughout the Colonial Pipeline System” (Work Plan). IV. Additional Work to be Performed: 15. Respondent agrees to complete the actions described in the Work Plan in accordance with the schedules set forth therein. Respondent agrees that the activities described in the Work Plan go beyond the minimum federal pipeline safety regulations. 16. Respondent agrees to revise the Work Plan as necessary to incorporate new information obtained during the activities performed under the Work Plan. Respondent shall submit any such plan revisions to the Director for prior approval. The Director may approve Work Plan revision elements incrementally. 17. The Director may grant an extension of time for completion of any of the work to be performed under the Work Plan upon Respondent’s timely, written request that demonstrates both good cause for an extension and provides sufficient detail to enable the Director to evaluate Respondent’s request. 18. With respect to any submission by the Respondent under the Work Plan that requires the approval of the Director, the Director may: (1) approve the submission, in whole or in part; (2) disapprove the submission on specified conditions; (3) disapprove the submission, in whole or in part; or (4) undertake any combination of the foregoing. In the event of approval in whole, in part, or upon conditions, Colonial will proceed to take all actions required by the submission as modified by the Director. In the event the Director does not approve all or any portion of a submission, the Director will provide Colonial with a written notice of the deficiencies. Respondent will correct all deficiencies within the time specified by the Director and resubmit it for acceptance. IV. Enforcement 19. This Agreement, including all elements of the incorporated Work Plan, is subject to all enforcement authorities available to PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties under 49 U.S.C. § 60122, of up to $200,000 (as adjusted) per violation for each day the violation continues and referral of the case to the Attorney General for judicial enforcement, if PHMSA determines that Respondent is not complying with the terms of this Agreement in accordance with determinations made by the Director, or if appealed, in accordance with decisions of the Associate Administrator. The maximum civil penalty amounts are adjusted annually for inflation. See 49 C.F.R. § 190.233.#

220205001_Consent Agreement and Order_05042021_(18-162643S)_text.pdf, page 75 V. Dispute Resolution 20. The Director and Colonial will informally attempt to resolve any disputes arising under this agreement, including, but not limited to, any decision of the Director. If Colonial and the Director are unable to informally resolve the dispute within 15 calendar days after the dispute is first raised in writing, Colonial may submit a written request for a determination resolving the dispute from the Associate Administrator for Pipeline Safety. The written request for a determination must be provided to the Director, counsel for the Southern Region, and to the Associate Administrator no later than 10 calendar days after the 15-day deadline for informal resolution referenced in this paragraph. Along with its request, Colonial must provide the Associate Administrator with all information Colonial believes is relevant to the dispute. Determinations of the Associate Administrator under this paragraph constitute final agency action. The existence of a dispute and PHMSA’s consideration of matters placed in dispute, will not excuse, toll, or suspend any term or timeframe for completion of any work to be performed under this Agreement during the pendency of the dispute resolution process, except as agreed upon by the Director or Associate Administrator in writing. VI. Effective Date 21. The term “Effective Date,” as used herein, is the date on which the Consent Order is issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement. VII. Modification 22. The terms of this Agreement may be modified by mutual agreement of the Parties. Such modifications must be in writing and signed by both parties. IX. Termination 23. This Agreement will terminate upon submission, and approval where specified, of the deliverables set forth in the Work Plan. X. Ratification 24. The Parties’ undersigned representatives certify that they are fully authorized to enter into the terms and conditions of this Agreement and to execute and legally bind such party to this document.#

220205001_Consent Agreement and Order_05042021_(18-162643S)_text.pdf, page 86 25. The Parties hereby agree to all conditions and terms of this Agreement. For Colonial Pipeline Company: ________________________ Wes Dunbar Vice President of Operations ________________________ Date For PHMSA: _________________________ James Urisko Director, Southern Region _________________________ Date#

220205001_Closure Letter_03132026_(18-162643S)_text.pdf, page 1Official PDFU.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 230 Peachtree Street N.W. Suite 2100 Atlanta, GA 30303 VIA ELECTRONIC MAIL TO: MLittle@colpipe.com; QFrazier@colpipe.com March 13, 2026 Melanie Little President and Chief Executive Officer Colonial Pipeline Company 1185 Sanctuary Parkway, Suite 100 Alpharetta, GA 30009 Re: CPF No. 2-2020-5001 Dear Ms. Little: On May 4, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA) entered into a Consent Agreement with Colonial Pipeline Company. This Agreement, and resulting Order, included corrective actions to comply with 49 CFR § 195.262(b)(2). PHMSA has confirmed satisfactory completion of all required elements of the Consent Agreement and Order. Accordingly, this case is now closed, and no further action is required. Thank you for your cooperation in this matter. Sincerely, James A. Urisko Director, Southern Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration CC: James Urisko, Director, PHMSA Office of Pipeline Safety, Southern Region Quintin Frazier, Director, Pipeline Compliance, Colonial Pipeline QFrazier@colpipe.com#

220205001_PHC Hearing Scheduled_03102021_text.pdf, page 1Official PDFMarch 10, 2021 VIA ELECTRONIC MAIL TO: mpiazza@colpipe.com and james.urisko@dot.gov Mr. Mark Piazza Manager, Pipeline Compliance and R&D Colonial Pipeline Company 1185 Sanctuary Parkway, Suite 100 Alpharetta, GA 30009 Mr. James Urisko Director, Southern Region Pipeline and Hazardous Materials Safety Administration 233 Peachtree Street, NE, Suite 600 Atlanta, GA 30303 Re: Notice of Hearing, Colonial Pipeline Company CPF No. 2-2020-5001 Dear Mr. Piazza and Mr. Urisko: In accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of Probable Violation and Proposed Compliance Order issued by the Pipeline and Hazardous Materials Safety Administration in the above-referenced case. The hearing will take place on May 5, 2021, beginning at 8:30 a.m. Eastern Time. The hearing will be held via videoconference. I will provide the videoconference information prior to the hearing. At least 10 calendar days prior to the hearing (or by April 26, 2021), both parties must submit and exchange any additional written materials they intend to present at the hearing and the name and email address of each attendee. This information should be provided electronically. Materials not submitted by this date may be excluded. If you have any questions, please do not hesitate to contact me. Sincerely, Larry White Presiding Official cc: Ms. Lauren Clegg, Counsel, Southern Region, Office of Pipeline Safety, PHMSA lauren.clegg@dot.gov#