PEMBINA COCHIN LLC — Warning Letter

320195001W_Warning Letter_01112019_text.pdf, page 1Official PDFWARNING LETTER CERTIFIED MAIL - RETURN RECEIPT REQUESTED January 11, 2019 Mr. Wayne Simmons Chief Operating Officer-Products Pipeline Kinder Morgan Cochin, LLC 1001 Louisiana Street, Suite 1000 Houston, Texas 77002 CPF 3-2019-5001W Dear Mr. Simmons: From August 22-26, 2016, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected your Kankakee Tank Terminal in Kankakee, IL. As a result of the inspection, it is alleged that you have committed a proable violation of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected and the probable violation is: 1. §195.310 Records. (a) A record must be made of each pressure test required by this subpart, and the record of the latest test must be retained as long as the facility tested is in use. (b) The record required by paragraph (a) of this section must include: (3) The name of the operator, the name of the person responsible for making the test, and the name of the test company used, if any Kinder Morgan Cochin’s pressure test record for Tank 5 failed to include the name of the person responsible for making the test and the name of the test company used. Kinder Morgan Cochin’s Tank 5 “Technical Standard for Hydrostatic Testing” record created on May 20,#

320195001W_Warning Letter_01112019_text.pdf, page 22014, did not have a certifying signature identifying the person responsible for making the test. The tank has been in use since 2014. Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed $213,268 per violation per day the violation persists, up to a maximum of $2,132,679 for a related series of violations. For violation occurring on or after November 2, 2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015, the maximum penalty may not exceed $200,000 per violation per day, with a maximum penalty not to exceed $2,000,000 for a 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. Failure to do so will result in Kinder Morgan Cochin, LLC 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 3-2019-5001W. 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, Allan C. Beshore Director, Central Region, OPS Pipeline and Hazardous Materials Safety Administration 2#