NUSTAR PIPELINE OPERATING PARTNERSHIP L.P. — Notice of Probable Violation

320065042_Final Order_02202007.pdf, page 1Official PDFU.S. Department 400 Seventh Street, S.W. of Transportation Washington, D.C. 20590 Pipeline and Hazardous Materials Safety Administration Mr. Rodney Reese Vice President, Regional Operations Valero L.P. One Valero Way Mail Stop C2G-140 San Antonio, TX 78249- 16 16 Re: CPF No. 3-2006-5042 Dear Mr. Reese: 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 specifies actions to be taken to comply with the pipeline safety regulations. When the terms of the compliance order are completed, as determined by the Director, Central Region, PHMSA, this enforcement action will be closed. Your receipt of this Final Order constitutes service of that document under 49 C.F.R. 190.5. Sincerely, James Reynolds Pipeline Compliance Registry OEce of Pipeline Safety Enclosure cc: Ivan Huntoon Director, Central Region, PHMSA CERTIFIED MAIL -RETURN RECEIPT REQUESTED#

320065042_Final Order_02202007.pdf, page 2DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 - - In the Matter of Valero L.P., CPF NO. 3-2006-5042 Respondent FINAL ORDER On March 27-30, April 24-27, and June 26-27,2006, pursuant to 49 U.S.C. 8 601 17, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety and the Minnesota Office of Pipeline Safety conducted an on-site pipeline safety inspection of Respondent's facilities and records associated with the Kaneb refined products pipeline in North Dakota and Minnesota. As a result of the inspection, the Director, Central Region, PHMSA, issued to Respondent, by letter dated October 5,2006, a Notice of Probable Violation and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. 5 190.207, the Notice proposed finding that Respondent had committed a violation of 49 C.F.R. Part 195 and proposed ordering Respondent to take certain measures to correct the alleged violation. Respondent responded to the Notice by letter dated October 23, 2006 (Response). Respondent did not contest the allegation of violation but provided information concerning the corrective actions it has initiated. Respondent did not request a hearing, and therefore has waived its right to one. FINDING OF VIOLATION In its Response, Respondent did not contest the alleged violation in the Notice. Accordingly, I find that Respondent violated the following section of 49 C.F.R. Part 195, as more fully described in the Notice: 49 C.F.R. 5 195.402(a)-failing to follow procedures for identifying, testing, and minimizing the detrimental effects of stray currents at foreign pipeline crossings between Mandan, North Dakota and Roseville, Minnesota. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent.#

320065042_Final Order_02202007.pdf, page 3COMPLIANCE ORDER The Notice proposed a compliance order with respect to Respondent's failure to follow procedures for identifying, testing, and minimizing the detrimental effects of stray currents at foreign pipeline crossings. Under 49 U.S.C. 5 601 18(a), each person who engages in the transportation of hazardous liquids 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. 5 601 18(b) and 49 C.F.R. 5 190.2 17, Respondent is ordered to take the following actions to ensure compliance with the pipeline safety regulations applicable to its operations: 1. Within 30 days following receipt of this Order, submit a written plan and schedule of action to evaluate each foreign line crossing for the adverse effects of stray currents to Ivan A. Huntoon, Director, Central Region, Pipeline and Hazardous Materials Safety Administration, 901 Locust Street, Room 462, Kansas City, MO 64106; 2. Begin implementation of the plan and schedule required by Item 1, above, within 60 days following receipt of this Order; and 3. Maintain documentation of the activities undertaken to fulfill the requirements of this compliance order, including costs. Upon completion of the requirements, submit the documentation to Ivan A. Huntoon, Director, Central Region, Pipeline and Hazardous Materials Safety Administration, 901 Locust Street, Room 462, Kansas City, MO 64106. Costs shall be reported in two categories: (I) total cost associated with preparationlrevision of plans, procedures, studies and analyses; and (2) total cost 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 demonstrating good cause for an extension. Failure to comply with this Order may result in the assessment of civil penalties of up to $100,000 per violation per day, or in the referral of the case for judicial enforcement. The terms and conditions of this Final Order are effective on receipt. Date Issued ~ u i n g Associate Administrator for Pipeline Safety#

320065042_Closure Letter_02082011_text.pdf, page 1Official PDFIFIED MAIL - RETURN RECEIPT REQUESTED February 8, 2011 Mr. Todd Denton, Vice President, Regional Operations NuStar Pipeline Operating Partnership L.P. 2330 N. Loop 1604 West San Antonio, TX 78248-4512 CPF 3-2006-5042 Dear Mr. Denton: On February 20, 2007, the Pipeline and Hazardous Material Safety Administration (PHMSA) issued to Kaneb Pipe Line Company/Valero, L.P a Final Order in the above-referenced case. NuStar Energy, LP. is the current operator responsive to this Order. The Order included a Compliance Order to provide a remediation plan, schedule, and evaluate each pipeline crossing with foreign pipeline crossings for adverse effects of stray currents on your Mandan, ND to Roseville, MN pipeline. Based on a review of the documentation you provided on October 23, 2006, and January 24, 2011, 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, David Barrett Director, Central Region Pipeline and Hazardous Materials Safety Administration#