NORTHERN BORDER PIPELINE COMPANY — Warning Letter

320081001w_warning letter_04112008_text.pdf, page 1Official PDFu. s. Department of Transportation Pipeline and Hazardous Materials Safety Administration 901 Locust Street, Suite 462 Kansas City, MO 64106-264t WARNING LETTER CERTIFIED MAIL - RETURN RECEIPT RE UESTED April 11, 2008 Mr. Vern Meier Vice President, Field Operations TransCanada US Pipeline 717 Texas Street, Suite 2400 Houston, TX 77002-2661 CPF 3-2008-1001W Dear Mr. Meier: On August 14, 2007, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), discussed with your personnel the subject of several missing critical bond readings on the Northern Border Pipeline System in the Joliet/Channahon, IL area. Upon review of the information received, it appears that you have committed a probable violation of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The item discussed and the probable violation is: 1. tj192. 465 External corrosion control: Monitoring. (c) Each reverse current switch, each diode, and each interference bond whose failure would jeopardize structure protection must be electrically checked for proper performance six times each calendar year, but with intervals not exceeding 2 1/2 months. Each other interference bond must be checked at least once each calendar year, but with intervals not exceeding 15 months. The inspection interval for six critical bonds in the Channahon/Joliet, IL area exceeded 2- I/2 months (75 days) in 2007.#

320081001w_warning letter_04112008_text.pdf, page 2The six critical bonds and the inspection intervals are: Central Road Shell Crossing — DS I&M Canal (Guardian) I&M Canal. (NGPL) Vetter Road Ridge Road ~II d 4/27/2007 4/27/2007 4/18/2007 4/18/2007 4/19/2007 4/30/2007 ~II d 8/8/2007 8/8/2007 8/10/2007 8/10/2007 8/9/2007 8/9/2007 Interval 101 days 101 days 112 days 112 days 110 days 99 days 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 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(s) idenfified in this letter. Failure to do so will result in Trans Canada US Pipeline being subject to additional enforcement action. No reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF 3-2008-1001W. Be advised that all material you submit in response to this 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 U. S. C. 552(b), along with the complete original document 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 U. S. C. 552(b). Sincerely, Ivan A. Huntoon Director, Central Region Pipeline and Hazardous Materials Safety Administrafion#