BUCKEYE PARTNERS, LP — Notice of Probable Violation

party submissionOfficial PDF320075026_Operator Response_12122007.pdf#

320075026_Closure Letter_03302012_text.pdf, page 1Official PDFCERTIFIED MAIL - RETURN RECEIPT REQUESTED TRANSMITTED ELECTRONICALLY [Mr. Carl A. Ostach] March 30, 2012 Mr. Carl A. Ostach Vice President, Field Operations Buckeye Partners, L.P. 5 Tek Park 9999 Hamilton Boulevard Breinigsville, Pennsylvania 18031 CPF 3-2007-5026 Dear Mr. Ostach: On December 30, 2010, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to Buckeye Partners, L.P. a Final Order (Order) in the above-referenced case. 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, David Barrett Director, Central Region Pipeline and Hazardous Materials Safety Administration#

320075026_notice letter_09102007_text.pdf, page 1Official PDFU S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 90t Locust Street, Suite 462 Kansas City, MO 64t06-264t NOTICE OF PROBABLE VIOLATION PROPOSED CIVIL PENALTY sttd PROPOSED COMPLIANCE ORDER CERTIFIED MAIL - RETURN RECEIPT RE UESTED September 10, 2007 Mr. Brian Jury Vice President, Field Operations Buckeye Partners, 1 P. 5002 Buckeye Road Emmaus, PA 18049-0368 CPF 3-2007-5026 Dear Mr Jury. On October 17-21, 2005, October 31 — November 4, 2005, November 14-18, 2005, and March 13-16, 2006, a representative of the Pipehne and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected your pipeline facilities m Illmois, Indiana, Ohio, and Michigan, and your compliance records m Emmaus, Pennsylvania 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. 402 Procedural inanual for operations, maintenance, and emergencies. (a) General. Each operator shall prepare and follow for each pipeline system a manual of written procedures for conducting normal operations and maintenance activities and handling abnormal operations and emergencies.#

320075026_notice letter_09102007_text.pdf, page 2(c) Maintenance and normal operations. The manual required by paragraph (a) of this section must include procedures for the following to provide safety during maintenance and normal operations: (1) Making construction records, maps, and operating history available as necessary for safe operation and maintenance. Buckeye Partners did not follow its procedures for makmg accurate maps available for the safe operation and maintenance of their Two Rivers Pipehne Field personnel on the Two Rivers Pipeline were found to be using 1950's edition ahgnrnent sheets; these alignment sheets did not contain accurate pipeline mformation. Specifically, the alignment sheets were missing main hne block valves at MP 77, MP 102 1 and the Olney Station. Additionally, the ahgnment sheets did not show the Kirkwood Station that was built in 2000. The ahgnment sheets also showed the Lawrenceville Station that was removed in 2000 and the Bridgeport Junction that was removed m 1993 2. $195. 404 Maps and records. (c)(3) A record of each inspection and test required by this subpart shall be maintained for at least 2 years or until the next inspection or test is performed, whichever is longer. (a) Buckeye Partners did not have records of the following monthly breakout tank inspections required by 195. 432: Location Clermont Huntington Lima Cleveland Drydock Bay City Flint Owosso Toledo Number of Tanks Date 13 1-03; 2-03, 3-03; 4-03, 6-03, 7-03, 8-03; 11-03 1-03, 3-03, 4-04, 6-05 1-03; 2-03, 3-03; 5-03; 6-03; 7-03, 8-03; 9-03; 10-03; 11-03; 12-03; 1-04;2-04; 3- 04, 5-04;7-04;8-04, 9-04, 11-04;12-04; 1-05;3-05 11-04 7-04; 3-05 9-03; 2-04; 6-04, 9-04; 11-04; 3-05 3-05, 6-05 1-04#

320075026_notice letter_09102007_text.pdf, page 3(b) Buckeye Partners did not have records of the following main line block valves inspections required by 195 420 Valve Descri tion Shell ML Valve DB999B12B Total Junction DB999TJV2A Wayne Station KR209WW17E Detroit Property WD201WJV15D Detroit Pro ert WD202DB V15D Wa e Sta WJ201 WWVOE Wayne Property WJ201WWVOD Wa e Sta WJ205WWVOZ Wayne Sta Valve By Radio WS209WWV17E Wayne Sta M/L by Radio WS209WWV17E Detroit Station WS212WDV56D Wayne Station WW206WNVOE Novi Property WW206WNV16D 65' St J J403CLV90A Pro erty Lne JJ403CLV95D Whistler Rd XB403 J JV58A Hinkle Rd k225' St XB403J JV66A Bald Eagle Rd WC203 WFV40A Irish Rd WC203WFV53A Cold Water K Center WC203WFV67A Joan Rd WD201 WJV6A Ashland Jct WD201WJV9A W of Flint River WF207WZV10A Owosso WF207WZV31D WS Pro erty Line Valve WS999A1VOA WS Pro erty Line Valve WS999AI VOA Date 2" Inspection 2004 2" Ins ection 2004 2" Inspection 2004 2" Ins ection 2004 2" Ins ection 2004 2" Ins ection 2004 2" Ins ection 2004 2" Inspection 2004 1" Inspection 2003 2" Inspection 2004 2" Inspection 2004 2' Inspection 2004 2" Ins ection 2004 2" Inspection 2003 2" Ins ection 2003 2" Inspection 2003 2" Inspection 2003 1" Ins ection 2005 1" Inspection 2005 1" Ins ection 2005 1" Inspection 2005 1" Inspect~on 2005 1" Inspect~on 2005 1" Ins ection 2005 2" Ins ection 2004 1" Ins ection 2005 (c) Buckeye Partners did not have records of the Bradley Road rehef valve mspection required by 195, 428 on the Toledo to Cleveland pipehne in 2004. (d) Buckeye Partners does not maintain individual records of monthly breakout tank mspections required by 195 432 for each breakout tank at multi-tank facilities Buckeye's present record-keeping systein groups all breakout tanks by location and only one record is completed for that location. Part 195. 404 (c) (3) requires a record be mamtained of each mspection completed to meet the requirements of Part 195. Buckeye Partners' inspection documentation process does not for multi- tank facihties meet the requirements of 195 404(c)(3)#

320075026_notice letter_09102007_text.pdf, page 43. $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". . . (ii) The name of the operator and a telephone number (including area code) where the operator can be reached at all times. (a) The hne markers placed at the span crossmg at East 55'" Street in Cleveland, Ohio on the 523 pipehne did not identify Buckeye as the operator or display a 24 hour telephone number (b) Buckeye Partners had hne markers displaying the phone number 215-967-3131. This phone number is not m service The pipeline line markers did not state a correct telephone number where the operator could be reached at all times These erroneous hne markers were found at various locations in Ohio and Indiana, specifically 1 line marker at the Clermont Station 1 hne marker south of Zionsville, IN at a creek near Retriever Lane, on the 403 pipeline section 2 hne markers southeast of Hilhard Park on the 401 pipeline section 1 lme marker southeast of the Crosgray MLBV on the 401 pipeline section South of Adams Road at a fence row on the 401 pipeline Section. 1 hne marker east of the Wonderlick Road Block Valve on the 003 pipeline section 1 hne marker at the Cygnet Pump station 1 hne inarker at County Road 109 on the 411 pipeline section 1 hne marker near Hummel and 130' Street on the 316 pipelme section 1 lme marker near Middlebrook and Holland Streets on the 316 pipeline section 1 hne marker near Stroud and Smith Streets on the 316 pipehne section 1 line marker at the intersection of Fry Road and the 316 pipeline section 1 line marker approximately 1000 feet north of the Main Street Block Valve on the 316 pipeline section I hne marker at the Warrenville Road Rectifier on the 523 pipehne section 1 lme marker at approximately MP 20 on the 523 pipeline section 1 lme marker approximately 200' east of the Liberty Road Block Valve on 523 pipelme section#

320075026_notice letter_09102007_text.pdf, page 5(c) Buckeye Partners had line markers displaying an inaccurate phone number 216-274- 2234 which was at one time the Mantua Station This phone number nov reaches a law firm not associated with Buckeye Partners The pipehne hne markers did not state a correct telephone number where the operator could be reached at all times. The location of these inaccurate line markers are: 1 line marker at 8+07 on the 523 pipehne section 1 line marker at 23+99 on the 523 pipelme section 1 line marker at 28+58 on the 523 pipehne section 1 line marker approximately 100 yards west of the Rogers Block Valve 1 hne marker at the Treet Road crossing on the 523 pipeline section (d) Buckeye Partners had 4 lme markers near MP 174 and 3 line markers near MP 172 on the Two Rivers Pipeline that do not contain the correct name and emergency phone number These line markers displayed the Equilon name and the Equilon emergency phone number 800-634-4325 4. )195. 410 Line markers. (c) Each operator shall provide line marking at locations where the line is above ground in areas that are accessible to the public. Buckeye Partners did not place a line marker at the above ground span located at approximately MP 175 on the Two Rivers System, which was obtained from Equilon, as required by 195 410 (c). 5. $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. Buckeye Partners did not perform an adequate patrol by providing inspection of surface conditions along one 500' section of their Wayne to Detroit pipeline in the vicimty of Interstate 94, south of Outer Drive, and north of Southfield Road in Allen Park, Michigan. This area of right-of-way contained dense overgrowth and was only patrolled by aircraft 6. $195. 452 Pipeline integrity management in high consequence areas. (h) What actions must an operator take to address integrity issues? (1) General requirements. An operator must take prompt action to address all 5#

320075026_notice letter_09102007_text.pdf, page 6anomalous conditions that the operator discovers through the integrity assessment or information analysis. (2) Discovery of condition. Discovery of a condition occurs when an operator has adequate information about the condition to determine that the condition presents a potential threat to the integrity of the pipeline. An operator must promptly, but no later than 180 days after an integrity assessment, obtain sufficient information about a condition to make that determination, unless the operator can demonstrate that the 180-day period is impracticable. Buckeye Partners did not promptly determine that a condition presenting a potential threat to the integrity of its 301 pipehne was present. Sufficient information to identify an integrity threat meeting the criteria for an immediate repair condition at wheel count 72475 1 was reported to Buckeye in an ILI vendor's final report on 2/27/04. However, Buckeye's records show that it did not make the required determination until 4/5/04 This immediate repair condition mvolved a dent on the top of the pipe and metal loss and was located in a high consequence area. 7. $195. 452 Pipeline integrity management in high consequence areas (h) What actions must an operator take to address integrity issues? (4) Special requirements for scheduling remediation. (i) Immediate repair conditions. An operator's evaluation and remediation schedule must provide for immediate repair conditions. To maintain safety, an operator must temporarily reduce operating pressure or shut down the pipeline until the operator completes the repair of these conditions. An operator must calculate the temporary reduction in operating pressure using the formula in section 451. 7 of ASMK/ANSI 831. 4. An operator must treat the following conditions as immediate repair conditions: (C) A dent located on the top of the pipeline (above the 4 and 8 o' clock positions) that has any indication of metal loss, cracking or a stress riser. Buckeye Partners did not. reduce the pressure or shut do@, n the 301 pipeline when they became aware of the immediate repair condition described in Item 6 above. Buckeye Partners records indicate that the pipehne remained in operation without a reduction in operating pressure between the discovery date and the date of repair (4/15/04),#

320075026_notice letter_09102007_text.pdf, page 78. )195. 452 Pipeline integrity management in high consequence areas (f) What are the elements of an integrity management program? An integrity management prograin begins with the initial framework. An operator must continually change the program to reflect operating experience, conclusions drawn from results of the integrity assessments, and other maintenance and surveillance data, and evaluation of consequences of a failure on the high consequence area. An operator must include, at minimum, each of the following elements in its written integrity management program: (8) A process for review of integrih assessment results and information analysis by a person qualified to evaluate the results and information. Buckeye Partners did not ensure that its process for review of integrity assessment results by qualified personnel was fully implemented. Buckeye Partners personnel failed to identify inaccuracies in the Nondestructive Inspection Report (NDT) and Office Report associated with a 4/15/04 anomaly dig and investigation on the 301 pipeline in Troy Township, Wood County, Ohio This is the same anomaly referred to in Items 6 and 7 above Specifically, the Nondestructive Inspection Report had maccurate GPS coordinates for the anomaly (the report hsted GPS coordinates for Northwestern Indiana not Northwestern Ohio) and the wrong state (the report hsted Illmois not Ohio). Additionally, the Office Report indicated the Depth of Defect as 0. 177" when the actual depth of defect was 0. 044". These inaccuracies were brought to Buckeye Partners' attention during the OPS mspection. 9. )195. 583 What must I do to monitor atmospheric corrosion control? (a) You must inspect each pipeline or portion of pipeline that is exposed to the atmosphere for evidence of atmospheric corrosion, at least once every 3 calendar years, but with intervals not exceeding 39 months for onshore pipelines. (a) Buckeye Partners was unable to provide records demonstrating that atmospheric corrosion inspections were done on 4 spans located at approximately MP 171 9, 172, 175, and 175. 5 on the Two Rivers Pipehne during the three year period precedmg the date of the OPS inspection (b) Buckeye Partners did not inspect and document an atmospheric corrosion examination on an exposure located in an underground vault at approximately 20+59 on the Erie Junction to Dry Dock pipeline section during the three year period precedmg the OPS mspection.#

320075026_notice letter_09102007_text.pdf, page 8Pro osed Civil Penalt Under 49 United States Code, ( 60122, you are subject to a civil penalty not to exceed $100, 000 for each violation for each day the violation persists up to a maximum of $1, 000, 000 for any related senes of violations The Compliance Officer has reviewed the circumstances and supporting documentation mvolved in the above probable violation(s) and has recommended that you be preliminanly assessed a civil penalty of $202, 000 as follows, Item number 2 (a) -' (b) 2 (c) 5 6 7 PENALTY $9, 000 $9, 000 $9, 000 $35, 000 $70, 000 $70, 000 With respect to items 2(d), 4, 8, and 9 (b) we have reviewed the circumstances and supportmg 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 promptly correct these items Be advised that failure to do so may result in Buckeye Partners' being subject to additional enforcement action, Pro osed Com liance Order With respect to items 1, 3(a)-(d), and 9 (a) pursuant to 49 United States Code ( 60118, the Pipehne and Hazardous Matenals Safety Administration proposes to issue a Compliance Order to Buckeye Partners, Please refer to the Proposed Complharhce Order which is enclosed and made a part of this Notice. Res onse to this Notice Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators iri Compliance ProceeCkngs. Please refer to this document and note the response options Be advised that all material you submit in response to this enforcement action is sub& ect to bemg made pubhcly available. If you believe that any portion of your responsive matenal qualifies for confidential treatment under 5 U S. C. 552(b), along with the complete ongmal document you must provide a second copy of the document with the portions you beheve qualify for confidential treatment redacted and an explanation of why you beheve the redacted mfonnation 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 nght to contest the allegations in this Notice and authonzes 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#

320075026_notice letter_09102007_text.pdf, page 9In your correspondence on this matter, please refer to CPF 3-2007-5026 and for each document you submit, please provide a copy in electromc format whenever possible. Sincerely, &J, Ivan A Huntoon Director, Central Region Pipeline and Hazardous Materials Safety Administration Enclosures' 'Proposed Compliance Order Response Options for Pipeline Operators in Compliance Proceedkngs#

320075026_notice letter_09102007_text.pdf, page 10PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code ) 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Buckeye Partners a Compliance Order incorporating the following remedial requirements to ensure the compliance of Buckeye Partners with the pipeline safety regulations: ln regard to Item Number 1 of the Notice pertaining to making accurate maps available to operating personnel: Within 90 days after receipt of a final order, make accurate updated maps available to all field personnel on the Two Rivers Pipelme System. In regard to Item Number 3(a)-(d) of the Notice pertaining to inaccurate telephone number's on some of your lme markers Within 90 days after receipt of a final order, present a plan and schedule for the updatmg of all Buckeye Partners hne markers to only display a working telephone number or numbers. The plan and schedule of updating of all lme markers shall require that all work will be completed within 365 days of the final order. In regard to Item Number 9(a) of the Notice pertaming to inspection of exposed pipe on the Two Rivers Pipehne System for atinospheric corrosion: Within 90 days after receipt of a final order, present a plan and work schedule for identifying and mspecting all exposed pipe on the Two Rivers Pipeline System and all other pipehne assets acquired from Equiion The plan and schedule shall require that all work will be completed within 365 days of the final order. Buckeye Partners shall maintain documentation of the safety improvement and compliance costs associated with fulfilling this Compliance Order and submit the total to Ivan A. Huntoon, Director, Central Region, Pipeline and Hazardous Materials Safety Administration. Costs shall 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 These costs shall be reported within 90 days after the completion of the task in this Comphance Order 10#

320075026_notice letter_09102007_text.pdf, page 11Response Options for Pipeline Operators in Compliance Proceedings The requirements of 49 C F R. Part 190, Subpart B ((~~ 190 201 — 190. 237) govern response to Notices issued by a Regional Director, Pipeline and Hazardous Materials Safety Admimstration (PHMSA) Be advised that all material submitted by a respondent in response to an 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 I. ', S C 552(b), along with the complete original docuinent 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 1J S. C 552(b). I Procedures for Res ondin to a NOTICE OF PROBABLE VIOLATION: Within 30 days of receipt of a Notice of Probable Violation, the respondent shall respond to the Regional Director who issued the Notice in the following way a When the Notice contains a ro osed CIVIL PENALTY'-- 1 Pay the proposed civil penalty and advise the Regional Director of the payment This authorizes PHMSA to make findings and to close the case with prejudice to the respondent Payment terms are outlined below: 2 Submit written explanations. information, or other materials m response to the allegations and/or seek elimination or mitigation of the proposed civil penalty. Refer to 49 C. F R. ) 190 225 for assessment considerations, which include the respondent's abihty to pay and the effect on the respondent's ability to stay m business, upon which civil penalties are based, or 3. Request a hearing as described below to contest the allegations and/or' proposed assessment of a civil penalty. b When the Notice contains a ro osed COMPLIANCE ORDER*-- 1 Notify the Regional Director that you intend to take the steps in the proposed compliance order, 2 Submit written explanations, information, or other materials in answer to the allegations in the Notice and object to or seek clarification of the proposed compliance order items in whole or in part; or 3. Request a hearing as described below to contest the allegations and/or proposed comphance order items. 1of5#

320075026_notice letter_09102007_text.pdf, page 12c When the Notice contains a WARNING ITEM— No writteii response is required The respondent is warned that if it does not take appropnate action to correct these items, enforcement action will be taken if a subsequent inspection reveals a. violation "' Failure of the respondent to respond to the Notice within 30 days of receipt constitutes a waiver of the right to contest the allegations in the Notice and authorizes the Associate Admimstrator for Pipeline Safety to find facts as alleged in the Notice without further notice to the respondent and to issue a Final Order II. Procedures for Res ondin to a NOTICE OF AMENDMENT*— Within 30 days of receipt of a Notice of Amendment, the respondent shall respond to the Regional Director who issued the Notice in the following way a. Notify the Regional Director of your plans to address the inadequacies identified in the Notice; b Submit written explanations, information, or other materials in answer to the allegations m the Notice and/or object to or seek clanfication of the proposed amendment items in whole or in part:, or c. Request a hearing as descnbed below' to contest the allegations in the Notice. * Failure of the respondent to respond to the Notice within 30 days of receipt constitutes a waiver of the nght to contest the allegations m the Notice and authorizes the Associate Administrator for Pipehne Safety to find facts as alleged in the Notice without further notice to the respondent and to issue a Final Order. III Procedure for Re uestin a Hearin A request for a hearing must be in writing and accompanied by a statement of the issues that the respondent intends to raise at the heanng. The issues may relate to the allegations, new information, or to the proposed compliance order or proposed civil penalty amount. Refer to 49 C F R P 190 225 for assessment considerations upon which civil penalties are based. A respondent's failure to specify an issue inay result in waiver of the right to raise that issue at the heanng. The respondent's request must also indicate whether or not respondent will be represented by counsel at the hearing Failure to request a heanng in writing within 30 days of receipt of a Notice waives the nght to a heanng, In addition, if the amount of the proposed civil penalty or the proposed corrective action is less than $10, 000, the hearing will be held by telephone, unless the respondent submits a v ritten request for an in-person heanng Complete heanng procedures can be found at 49 C F R $ 190 211 2of5#

320075026_notice letter_09102007_text.pdf, page 13IV Extensions of Time An extension of time to prepare an appropriate response to a Notice may. be granted, at the agency's discretion. following submittal of a written request to the Regional Director The request must indicate the amount of time needed and the reasons for the extension The request must be submitted within 30 days of receipt of the Notice. V. Freedom of Information Act Any material prepared by PHMSA, including the violation report, the Notice. and any order issued in this case, and any material provided to PHMSA by the respondent, may be considered pubhc information and subject to disclosure under the Freedom of Information Act (I OIA). If the information you provide is security sensitive, privileged, confidential or may cause your company competitive disadvantages, please clearly identify the material and provide justification why the documents, or portions of a document, should not be released under FOIA. If we receive a request for your material, we will notify you if PHMSA, after reviewing the materials and your provided justification. determmes that withholding the materials does not meet any exemption provided under the FOIA. You may appeal the agency's decision to release matenal under the FOIA at that time. Your appeal will stay the release of those materials until a final decision is made VI, Small Business Re ulato Enforcement Fairness Act Information The Small Business and Agricultural Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were established to receive comments fiom small businesses about federal agency enforcement actions. The Ombudsman will annually evaluate the enforcement activities and rate each agency's responsiveness to small busmess. If you wish to comment on the enforcement actions of the Pipeline and Hazardous Matenals Safety Administration, call I -888-REG-FAIR (1-888-734-3247) or go to http. //w~w. sbp, gov/ombudsman!dsp faq html 3 of 5#

320075026_notice letter_09102007_text.pdf, page 14VI I PAYMENT INSTRUCTIONS Civil Penalty Payments of Less Than $10, 000 Payment of a civil penalty of less than $10, 000 proposed or assessed, under Subpart B of Part 190 of the Pipeline Safety Regulations can be made by certified check, money order or wire transfer. Payment by certified check or money order (containing the CPF Number for this case) should be made payab! e to the "Department of Transportation" and should be sent to: Federal Av iation Admimstration Mike Monroney Aeronautical Center Fmancial Operations Division (AMZ-341) P 0, Box 25082 Oklahoma City, OK 73125-4915 %']re transfer payments of less than $10, 000 may be made through the Federal Reserve Communications System (Fedwire) to the account of the U S Treasury Detailed instructions are provided below Questions concermng wire transfer should be directed to the Financial Operations Division at (405) 954-8893, or at the above address Civil Penalty Payments of $10, 000 or more Payment of a civil penalty of $10, 000 or more proposed or assessed under Subpart B of Part 190 of the Pipehne Safety Regulations must be made wire transfer (49 C F R. ( 89. 21 (b)(3)). through the Federal Reserve Communications System (I edwire) to the account of the U. S. Treasury. Detailed instructions are provided below. Questions concerning wire transfers should be directed to the Financial Operations Divis~on at (405) 954-8893, or at the above address. INSTRUCTIONS FOR ELECTRONIC FUND TRANSFERS 1 RECEIVER ABA'NO 021030004 (2) TYPE/SUB-TYPE (Provided by sending bank) (3) SENDING BANK ABA NO. (Provided by sendmg bank) (4) SENDING BANK REF NO (Provided by sendmg bank) (S) AMOUNT (6) SENDING BANK NAMF. (Provided by sending bank) (7) RECEIVER NAME TREAS NYC (8) PRODUCT CODE (Normally C'I R, or as provided by sending bank) (9) BENEFICIAL BNF — AGENCY LOCATION CODE BNF = /ALC-69-14-0001 (10) REASONS FOR PAYMENT Example PHMSA - CPF ¹/Ticket Number/Pipeline Assessment number 4 of 5#

320075026_notice letter_09102007_text.pdf, page 15INSTRUCTIONS: You, as sender of ihe wire transfer, must provide the sending bank with the information for blocks (1), (5), (7), (9), and (10) The information provided in Blocks (1), (7), and (9) are constant and remain the same f' or all wire transfers to the Pipehne and Hazardous Materials Safety Administration, Department of Transportation Block ¹1 — RECEIVER ABA NO. - "021030004" Ensure the sending bank enters this 9-digit identification number, it represents the routing symbol for the U. S, Treasury at the Federal Reserve Bank in New York Block ¹5 - AMOUNT - You as the sender provide the amount of the transfer Please be sure the transfer amount is punctuated with commas and a decimal point EXAMPLE: $10 000. 00 Block ¹y — RECEIVER NAME - n TREAS NYC". Ensure the sendrng bank enters tins abbrevration It tnust be used for all w&re transfers to the Treasury Department Block ¹9 - BENEFICIAL - AGENCY LOCATION CODE, — "BNF=/ALC-69-14-0001". Ensure the sending bank enters this information This is the Agency. I. ocation Code for the Pipeline and Hazardous Materials Safety Administration, Department of Transportation, Block ¹10 - REASON FOR PAYMENT - "AC-paynient for PHMSA Case ¹ / To ensure your wire transfer is credited properly, e~ter the case number/ticket number or Pipeline Assessment number, and country " NOTE: A wire transfer must comply with the format and instructions or the Department cannot accept the v ire transfer You as the sender can assist this process by notifying the Financial Operations Divis~on (405) 954-8893 at the time you send the wire transfer. May 2007#

320075026_FinalOrder_12302010_text.pdf, page 1Official PDFDEC 30 2010 Mr. Jerry J. Ashcroft Vice President, Field Operations Buckeye Partners, L.P. 5 Tek Park 9999 Hamilton Blvd Breinigsville, PA 18031 Re: CPF No. 3-2007-5026 Dear Mr. Ashcroft: Enclosed is the Final Order issued in the above-referenced case. It withdraws one of the allegations of violation, makes findings of violation, assesses a civil penalty of $167,000, and specifies actions to be taken to comply with the pipeline safety regulations. The penalty payment terms are set forth in the Final Order. When the civil penalty is paid and the terms of the compliance order completed, as determined by the Director, Central Region, PHMSA, this enforcement action will be closed. Your receipt of the Final Order constitutes service of that document 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. David Barrett, Director, Central Region, PHMSA CERTIFIED MAIL – RETURN RECEIPT REQUESTED 7005 1160 0001 0041 0756]#

320075026_FinalOrder_12302010_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, L.P., ) CPF No. 3-2007-5026 ) Respondent ) ______________________________) FINAL ORDER Between October 17, 2005 and March 16, 2006, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety conducted an on-site pipeline safety inspection of Respondent’s facilities in Illinois, Indiana, Ohio, Michigan, and compliance records in Emmaus, Pennsylvania. As a result of the inspection, the Director, Central Region, PHMSA, issued to Respondent, by letter dated September 10, 2007, 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 Respondent had committed violations of 49 C.F.R. Part 195 and proposed assessing a civil penalty of $202,000 for the alleged violations. The Notice also proposed ordering Respondent to take certain measures to correct the alleged violations. After requesting and receiving an extension of time, Respondent responded to the Notice by letter dated December 12, 2007 (Response). Respondent contested three of the allegations of violation, offered explanations, provided information concerning the corrective actions it has taken, and requested that the proposed civil penalty be reduced. Respondent did not request a hearing, and therefore has waived its right to one. FINDINGS OF VIOLATION Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.402, which states: § 195.402 Procedural manual for operations, maintenance, and emergencies. (a) General. Each operator shall prepare and follow for each pipeline system a manual of written procedures for conducting normal operations and maintenance activities and handling abnormal operations and#

320075026_FinalOrder_12302010_text.pdf, page 32 emergencies. This manual shall be reviewed at intervals not exceeding 15 months, but at least once each calendar year, and appropriate changes made as necessary to insure that the manual is effective. This manual shall be prepared before initial operations of a pipeline system commence, and appropriate parts shall be kept at locations where operations and maintenance activities are conducted. * * * (c) Maintenance and normal operations. The manual required by paragraph (a) of this section must include procedures for the following to provide safety during maintenance and normal operations: (1) Making construction records, maps, and operating history available as necessary for safe operation and maintenance. Specifically, Item 1 in the Notice alleged that Respondent failed to follow its procedures for making accurate maps available for the safe operation of the Two Rivers Pipeline. Respondent’s field personnel were found to be using outdated alignment sheets that did not reflect the presence of certain valves and stations that had been installed or removed. In its Response, Respondent did not dispute the allegation in the Notice that the alignment sheets in use were inaccurate, but provided information and explanations of potential relevance to a penalty assessment. Accordingly, after considering all the evidence, I find that Respondent violated 49 C.F.R. § 195.402 as more fully described in the notice. The explanatory information will be discussed in the Assessment of Penalty section below. Item 2a: The Notice alleged that Respondent violated 49 C.F.R. § 195.404(c), which states: § 195.404 Maps and records. (c) Each operator shall maintain the following records for the periods specified: (1) The date, location, and description of each repair made to pipe shall be maintained for the useful life of the pipe. (2) The date, location, and description of each repair made to parts of the pipeline system other than pipe shall be maintained for at least 1 year. (3) A record of each inspection and test required by this subpart shall be maintained for at least 2 years or until the next inspection or test is performed, whichever is longer. Specifically, Item 2a in the Notice alleged that Respondent failed to maintain records of certain monthly breakout tank inspections required by § 195.432. In its Response, Respondent did not dispute the allegation in the Notice that it did not maintain complete records of the specified monthly breakout tank inspections, but explained that “some” of the inspection records were not missing entirely, but rather were incomplete because they lacked completion dates. Respondent, however, did not provide documentation demonstrating which of these records were missing and which were incomplete. In any event, maintaining incomplete records constitutes a failure to maintain all required records. Accordingly, after#

320075026_FinalOrder_12302010_text.pdf, page 43 considering all the evidence, I find that Respondent violated 49 C.F.R. § 195.404(c) as more fully described in the notice. Item 2b: The Notice alleged that Respondent violated 49 C.F.R. § 195.404(c), which states: § 195.404 Maps and records. (c) Each operator shall maintain the following records for the periods specified: (1) The date, location, and description of each repair made to pipe shall be maintained for the useful life of the pipe. (2) The date, location, and description of each repair made to parts of the pipeline system other than pipe shall be maintained for at least 1 year. (3) A record of each inspection and test required by this subpart shall be maintained for at least 2 years or until the next inspection or test is performed, whichever is longer. Specifically, Item 2b in the Notice alleged that Respondent failed to maintain records of certain main line valve inspections required by § 195.420. In its Response, Respondent did not dispute the allegation in the Notice that it did not maintain complete records of the specified main line valve inspections, but offered the same explanation it provided for Item 2b that the records were incomplete. Maintaining incomplete records constitutes a failure to maintain all required records. Accordingly, after considering all the evidence, I find that Respondent violated 49 C.F.R. § 195.404(c) as more fully described in the notice. Item 2c: The Notice alleged that Respondent violated 49 C.F.R. § 195.404(c), which states: § 195.404 Maps and records. (c) Each operator shall maintain the following records for the periods specified: (1) The date, location, and description of each repair made to pipe shall be maintained for the useful life of the pipe. (2) The date, location, and description of each repair made to parts of the pipeline system other than pipe shall be maintained for at least 1 year. (3) A record of each inspection and test required by this subpart shall be maintained for at least 2 years or until the next inspection or test is performed, whichever is longer. Specifically, Item 2c in the Notice alleged that Respondent failed to maintain records documenting completion of the Bradley Road relief valve inspection on the Toledo-to-Cleveland pipeline in 2004 as required by § 195.428. In its Response, Respondent acknowledged that the relief valve inspection required to be performed in calendar year 2004 was not performed until January 2005. Accordingly, after considering all the evidence, I find that Respondent violated 49 C.F.R. § 195.404(c) as more fully described in the notice. Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.410(a), which states:#

320075026_FinalOrder_12302010_text.pdf, page 54 § 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. (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 1/4inch (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. Specifically, the Notice alleged that: (a) The line markers placed at the span crossing at East 55th Street in Cleveland, Ohio on the 523 pipeline did not identify Buckeye as the operator or display a 24-hour telephone number; (b) Sixteen (16) line markers specified in the Notice displayed 215-967-3131 which was the incorrect telephone number for reaching Buckeye; (c) Five (5) line markers specified in the notice displayed 216-274-2234 which was the incorrect telephone number for reaching Buckeye; and (d) Seven (7) line markers specified in the Notice displayed 800-634-4325 which was the incorrect telephone number and also misidentified the operator. In its Response, Respondent did not dispute the allegations in the Notice. Accordingly, after considering all the evidence, I find that Respondent violated 49 C.F.R. § 195.410(a) as more fully described in the notice. Item 6: The Notice alleged that Respondent violated 49 C.F.R. § 195.452(h)(2), which states: § 195.452 Pipeline integrity management in high consequence areas. (h) What actions must an operator take to address integrity issues? — (1) General requirements . An operator must take prompt action to address all anomalous conditions the operator discovers through the integrity assessment or information analysis. In addressing all conditions, an operator must evaluate all anomalous conditions and remediate those that could reduce a pipeline's integrity. An operator must be able to demonstrate that the remediation of the condition will ensure the condition is unlikely to pose a threat to the long-term integrity of the pipeline. An operator must comply with §195.422 when making a repair.#

320075026_FinalOrder_12302010_text.pdf, page 65 (i) Temporary pressure reduction. An operator must notify PHMSA, in accordance with paragraph (m) of this section, if the operator cannot meet the schedule for evaluation and remediation required under paragraph (h)(3) of this section and cannot provide safety through a temporary reduction in operating pressure. (ii) Long-term pressure reduction. When a pressure reduction exceeds 365 days, the operator must notify PHMSA in accordance with paragraph (m) of this section and explain the reasons for the delay. An operator must also take further remedial action to ensure the safety of the pipeline. (2) Discovery of condition. Discovery of a condition occurs when an operator has adequate information about the condition to determine that the condition presents a potential threat to the integrity of the pipeline. An operator must promptly, but no later than 180 days after an integrity assessment, obtain sufficient information about a condition to make that determination, unless the operator can demonstrate that the 180-day period is impracticable. Specifically, the Notice alleged that Respondent failed to promptly determine that a condition presenting a potential integrity threat was present on its 301 pipeline. On February 27, 2004, Respondent’s ILI vendor reported sufficient information about the dent and metal loss condition at wheel count 72475.1 for Respondent to make a determination that an immediate repair condition was present, but Respondent did not make the required determination until April 5, 2004. In its Response, Respondent acknowledged that there was a delay of approximately 45 days in determining that the condition at the specified location was an immediate repair condition requiring appropriate field action, but contended that the ILI report did not provide definitive information about the condition because the vendor did not highlight it in the Executive Summary and feature summary listings. Respondent, however, did not dispute the fact that sufficient information to identify the condition was contained elsewhere in the report. The failure of Respondent’s vendor to highlight a feature in an Executive Summary does not relieve Respondent of its obligation to thoroughly review all data and information resulting from an ILI tool run. Accordingly, after considering all the evidence, I find that Respondent violated 49 C.F.R. § 195.452(h)(2) as more fully described in the notice. Item 7: The Notice alleged that Respondent violated 49 C.F.R. § 195.452(h)(4), which states: § 195.452 Pipeline integrity management in high consequence areas. (h) What actions must an operator take to address integrity issues? — (1) General requirements . An operator must take prompt action to address all anomalous conditions the operator discovers through the integrity assessment or information analysis. In addressing all conditions, an operator must evaluate all anomalous conditions and remediate those that could reduce a pipeline's integrity. An operator must be able to demonstrate that the remediation of the condition will ensure the condition is unlikely to pose a threat to the long-term integrity of the pipeline. An operator must comply with §195.422 when making a repair.#

320075026_FinalOrder_12302010_text.pdf, page 76 * * * (4) Special requirements for scheduling remediation —(i) Immediate repair conditions. An operator's evaluation and remediation schedule must provide for immediate repair conditions. To maintain safety, an operator must temporarily reduce operating pressure or shut down the pipeline until the operator completes the repair of these conditions. An operator must calculate the temporary reduction in operating pressure using the formula in section 451.7 of ASME/ANSI B31.4 (incorporated by reference, see §195.3). An operator must treat the following conditions as immediate repair conditions: * * * (C) A dent located on the top of the pipeline (above the 4 and 8 o'clock positions) that has any indication of metal loss, cracking or a stress riser. Specifically, the Notice alleged that Respondent failed to reduce the pressure or shut down the 301 pipeline until the dent and metal loss condition at wheel count 72475.1 referenced in Item 6 above was repaired. On February 27, 2004, Respondent’s ILI vendor reported sufficient information about the condition to identify it as an immediate repair condition but Respondent did not take immediate action to reduce the pressure between the discovery date and April 15, 2004, the date of repair. In its Response, Respondent did not dispute the allegation in the Notice that it failed to reduce the pressure or shut down the 301 pipeline until the specified condition was repaired, but provided information and explanations of potential relevance to a penalty assessment. Accordingly, after considering all the evidence, I find that Respondent violated 49 C.F.R. § 195.452(h)(4) as more fully described in the notice. The explanatory information will be discussed in the Assessment of Penalty section below. Item 9a: The Notice alleged that Respondent violated 49 C.F.R. § 195.583(a), which states: § 195.583 What must I do to monitor atmospheric corrosion control? (a) You must inspect each pipeline or portion of pipeline that is exposed to the atmosphere for evidence of atmospheric corrosion, at least once every 3 calendar years, but with intervals not exceeding 39 months for onshore pipelines. Specifically, the Notice alleged that Respondent failed to demonstrate that documented atmospheric corrosion inspections were conducted during the three year period preceding the OPS inspection on 4 spans located at approximately MP 171.9, 172, 175, and 175.5 on the Two Rivers Pipeline. In its Response, Respondent did not dispute the allegation in the Notice that it could not document the performance of atmospheric corrosion inspections during the relevant three-year period, but explained that it had only owned the pipeline for one year and therefore believed it had two more years in which to perform these inspections. I find Respondent’s argument#

320075026_FinalOrder_12302010_text.pdf, page 87 unpersuasive. If the previous owner had performed these inspections nearly three years before the sale, and Respondent could wait three more years, the result would be a six-year period between inspections which is not consistent with the intent of the regulation. If an operator intends to rely on the inspections performed by a previous owner, it must acquire and maintain the former owner’s records to establish the dates the inspections were performed and conduct the next inspection within the applicable interval. Accordingly, after considering all the evidence, I find that Respondent violated 49 C.F.R. § 195.583(a) as more fully described in the notice. WITHDRAWAL OF ALLEGATION Item 5: The Notice alleged that Respondent violated 49 C.F.R. § 195.412(a) which states: § 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. The Notice alleged that Respondent failed to patrol an area of its right-of-way in the vicinity of Allen Park, Michigan in a manner that allowed it to observe surface conditions. Specifically, the Notice alleged that Respondent elected to use aerial patrolling for this right-of-way but failed to clear vegetation overgrowth that interfered with aerial observation and proposed that a civil penalty of $35,000 be assessed for the alleged violation. In its response, Respondent explained that in addition to aerial patrolling, it also used ground patrols for this right-of-way and demonstrated the adequacy of these ground patrols by providing copies of weekly vehicle patrol reports for the relevant time period. Because Respondent has demonstrated compliance with the regulation, I am withdrawing this allegation. ASSESSMENT OF PENALTY Under 49 U.S.C. § 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. 49 U.S.C. § 60122 and 49 C.F.R. § 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. With respect to Item 2a, the Notice proposed a civil penalty of $9,000 for Respondent’s failure to maintain complete records of certain monthly breakout tank inspections in accordance with § 195.432. Accurate and complete recordkeeping is important to the safe operation of a pipeline. Violations of recordkeeping requirements are serious because in the absence of complete and reliable records, neither a pipeline operator nor OPS can properly evaluate and oversee the#

320075026_FinalOrder_12302010_text.pdf, page 98 effectiveness of a safety program. In its response, Respondent acknowledged that some of its records were incomplete and explained that a new work order software system which was installed in 2003 was in part responsible. Respondent explained that the learning curve required by this new software and the fact that it did not automatically require the entry of a completion date resulted in missing or incomplete completion dates in some of its preventive maintenance records. Respondent, however, has provided no information that would warrant a reduction in the civil penalty amount proposed in the Notice for this violation. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $9,000 for violating 49 C.F.R. § 195.432. With respect to Item 2b, the Notice proposed a civil penalty of $9,000 for Respondent’s failure to maintain records of certain main line valve inspections in accordance with § 195.420. Accurate and complete recordkeeping is important to the safe operation of a pipeline. Violations of recordkeeping requirements are serious because in the absence of complete and reliable records, neither a pipeline operator nor OPS can properly evaluate and oversee the effectiveness of a safety program. In its response, Respondent acknowledged that its records were incomplete and again explained that its new work order software system was in part responsible. Respondent, however, has provided no information that would warrant a reduction in the civil penalty amount proposed in the Notice for this violation. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $9,000 for violating 49 C.F.R. § 195.420. With respect to Item 2c, the Notice proposed a civil penalty of $9,000 for failure to maintain records documenting completion of the Bradley Road relief valve inspection in 2004 in accordance with § 195.428. In its response, Respondent acknowledged that the relief valve inspection required to be performed in calendar year 2004 was not performed until January of 2005 and stated that it was taking steps to ensure such inspections would be performed within the required interval in the future. Respondent, however, has provided no information that would warrant a reduction in the civil penalty amount proposed in the Notice for this violation. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $9,000 for violating 49 C.F.R. § 195.428. With respect to Item 6, the Notice proposed a civil penalty of $70,000 for Respondent’s failure to promptly determine that a condition presenting a potential integrity threat was present on its 301 pipeline in accordance with § 195.452(h)(2). Pipeline operators are obligated to thoroughly review the results of integrity assessments and promptly identify any integrity threatening anomalies. Any unwarranted delays, particularly if any anomalies meet the criteria for immediate repair conditions, can have direct safety impacts. In its response, Respondent stated that it was taking steps to ensure this failure would not occur again including adding a new integrity management position, having personnel attend additional training, and improving the process of loading the raw ILI data into its software to identify immediate and 60-day conditions and communicate them to the field. Respondent, however, has provided no information that would warrant a reduction in the civil penalty amount proposed in the Notice for this violation. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $70,000 for violating 49 C.F.R. § 195.452(h)(2).#

320075026_FinalOrder_12302010_text.pdf, page 109 With respect to Item 7, the Notice proposed a civil penalty of $70,000 for Respondent’s failure to reduce the pressure or shut down the 301 pipeline until an immediate repair condition was repaired as required by § 195.452(h)(4). Pipeline operators are obligated to take immediate action including temporarily reducing operating pressure or shutting down a line until repairs can be made when anomalies meeting the criteria for immediate repair conditions are identified in the course of an integrity assessment. The failure to do so can have direct safety impacts. In its response, Respondent stated that it had revised its process to ensure appropriate personnel make the required pressure calculations and reduce the pressure until repairs are completed on immediate repair conditions when they are identified. Respondent also revised its process to ensure field personnel understand which digs are for immediate conditions, which are 60-day conditions, etc. and to record the discovery date, condition interval, and due date. Respondent, however, has provided no information that would warrant a reduction in the civil penalty amount proposed in the Notice for this violation. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $70,000 for violating 49 C.F.R. § 195.452(h)(4). For the reasons discussed above, having reviewed the record and considered the assessment criteria, I assess Respondent a total civil penalty of $167,000. Respondent has the ability to pay this penalty without adversely affecting its ability to continue in business. Payment of the civil penalty must be made within 20 days of service. Federal regulations (49 C.F.R. § 89.21(b)(3)) require this payment 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-341), Federal Aviation Administration, Mike Monroney Aeronautical Center, P.O. Box 25082, Oklahoma City, OK 73125; (405) 954-8893. Failure to pay the $167,000 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. § 901.9 and 49 C.F.R. § 89.23. Pursuant to those same authorities, a late penalty charge of six percent (6%) per annum will 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 District Court. COMPLIANCE ORDER The Notice proposed a compliance order with respect to Items 1, 3, and 9a in the Notice for violations of § 195.402, § 195.410(a), and § 195.583(a). Under 49 U.S.C. § 60118(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. With respect to Item 1, Respondent provided documentation in its response demonstrating that it has updated and made accurate updated maps available to its operating personnel. With respect to Item 9a, Respondent provided a work plan and schedule for inspecting all exposed pipe on the Two Rivers pipeline system for atmospheric corrosion and taking any necessary action. These actions comply with the requirements in items 1 and 9a of the Proposed Compliance Order.#

320075026_FinalOrder_12302010_text.pdf, page 1110 With respect to Item 3, Respondent has not yet demonstrated action was taken to address the line markers. 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. In regard to Item 3(a)-(d) of the Notice pertaining to inaccurate telephone numbers on some of the line markers: Within 90 days following receipt of this Final Order, present a plan and work schedule for the updating of all Buckeye Partners’ line markers to only display a working telephone number or numbers. The plan and schedule must require that all work will be completed within 365 days of receipt of the Final Order. 2. Buckeye Partners must maintain documentation of the safety improvement and compliance costs associated with fulfilling this Compliance Order and submit the total to David Barrett, Director, Central Region, Pipeline and Hazardous Materials Safety Administration. Respondent must report costs 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 physical changes to the pipeline. Respondent must report these costs within 90 days after the completion of the tasks in this Compliance Order. The Director may grant an extension of time to comply with the required item upon a written request timely submitted by the Respondent demonstrating good cause for an extension. Failure to comply with this Order may result in administrative assessment of civil penalties not to exceed $100,000 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. WARNING ITEMS With respect to Items 2d, 4, 8, and 9b, the Notice alleged probable violations of Part 195, but did not propose a civil penalty or compliance order for these items. Therefore, these are considered to be warning items. The warnings were for: 49 C.F.R. § 195.404 (Notice Item 2d) ─ Respondent’s alleged failure to maintain individual records of monthly breakout tank inspections at multi-tank facilities; 49 C.F.R. § 195.410(c) (Notice Item 4) ─ Respondent’s alleged failure to place a line marker at the above ground span located at MP 175 on the Two Rivers system; 49 C.F.R. § 195.452(f)(8) (Notice Item 8) ─ Respondent’s alleged failure to ensure that its process for review of integrity assessment results by qualified personnel was fully implemented; and#

320075026_FinalOrder_12302010_text.pdf, page 1211 49 C.F.R. § 195.583(a) (Notice Item 9b) ─ Respondent’s alleged failure to inspect and document an atmospheric corrosion examination on an exposure located in an underground vault located at approximately 20+59 on the Erie Junction to Dry Dock pipeline section during the three year period preceding the OPS inspection. Respondent presented information in its Response showing that it had initiated actions to address the cited items. Having considered such information, I find, pursuant to 49 C.F.R. § 190.205, that probable violations of 49 C.F.R. Part 195 have occurred and Respondent is hereby advised to correct such conditions. If OPS finds a violation for any of these items in a subsequent inspection, Respondent may be subject to future enforcement action. Under 49 C.F.R. § 190.215, Respondent has a right to submit a petition for reconsideration of this Final Order. Should Respondent elect to do so, 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. All other terms of the order, including any required corrective action, remain in full effect unless the Associate Administrator, upon request, grants a stay. The terms and conditions of this Final Order are effective on receipt. ___________________________________ __________________________ Jeffrey D. Wiese Date Issued Associate Administrator for Pipeline Safety#