NATURAL GAS PIPELINE CO OF AMERICA (KMI) — Warning Letter

320071005W_Warning Letter_01302007.pdf, page 1Official PDF@ U.S. DeDortment of Tronsporfotion Pipeflne ond Hozordou3 tYloteriots gotely Adminisfrqflon 901 Locust Sf6et, Suite /162 Kansas City, MO 64106-2641 WARNING LETTER CERTIF'IED MAIL - RETURN RECEIPT REOUESTED January 30,2007 Mr. M. Dwayne Burton V.P. Gas Pipelines Kinder Morgan GP, Inc. 500 Dallas St. (One Allen Center) Houston, TX 77002 cPF 3-2007-100sw Dear Mr. Burton: On September 18-22, September 25-28, October 16-19 and October 23-26,2006, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of49 United States Code inspected your records and facilities for Kinder Morgan GP, Irc's Natural Gas Pipeline Company of America O\IGPL) pipelines in Missouri and Illinois. 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 item inspected and the probable violation is: 1. $192.743 Pressure limiting and regulating stations: Capacity of relief devices.#

320071005W_Warning Letter_01302007.pdf, page 2(b) If review and calculations are used to determine if a device has sufficient capacity, the-calculated capacity must be compared with the rated or experimentally determined relieving capacity of the deyice for the conditions under which it operates. After the initial calculations, subsequdnt calculations need not be made if the annual review documents that parameters haYe not changed to cause the rated or experimentally determined relieving capacity to be insufficient. The PHMSA representative reviewed relief capacity documentation at two locations that was determined to be inaccurate as follows: r At Hammond, on the Lovington, Illinois M&R station, the relief valve capacity was calculated at a set point of500 psig when it should have been calculated at a set point of 95 psig. NGPL personnel re-calculated the capacity at the correct set point and found that the relief valve capacity was still adequate for this application. o At Hammond, on the GMW 2800 HP compressors, the relief valve capacity was not accurately calculated because the specific orifice size was not identified. NGPL personnel determined the actual orifice size in the reliefvalve, recalculated the capacity and the relief valve was found to be adequately sized. Under 49 United States Code, 5 60122, you are subject to a civil penalty not to exc.eed $100,000 for each violation for each day the violation persists up to a maximum of $1,000,000 for any related series of violations. 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 item identified in this letter. Be advised that failure to do so will result in NGPL beine subject to additional enforcement action. No reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF 3-2007-1005W. Sincerelv. tfur"#tmae' Director, Central Region Pipeline and Hazardous Materials Safety Adminishation#