MAGELLAN PIPELINE COMPANY, LP — Notice of Probable Violation

party submissionOfficial PDF320195007_Operator Response to Notice_12162019.pdf#

320195007_NOPV PCP PCO_10112019_text.pdf, page 1Official PDFNOTICE OF PROBABLE VIOLATION PROPOSED CIVIL PENALTY and PROPOSED COMPLIANCE ORDER CERTIFIED MAIL - RETURN RECEIPT REQUESTED October 11, 2019 Mr. Michael Pearson VP Operations & Asset Integrity Magellan Pipeline Company, LP One Williams Center, OTC-9 Tulsa, OK 74172 CPF 3-2019-5007 Dear Mr. Pearson: On various dates between May 16th 2016 and January 25th 2017, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Central Region of the Office of Pipeline Safety (OPS) & Minnesota Office of Pipeline Safety pursuant to Chapter 601 of 49 United States Code conducted an onsite pipeline safety inspection of your procedures at your Tulsa, OK headquarters and records reviews at various locations in Kansas, Oklahoma, Iowa, Illinois, Minnesota, Nebraska, South Dakota and North Dakota. Field reviews of your facilities were done at various locations in Wisconsin, Minnesota, Kansas, Iowa, Illinois, Nebraska, South Dakota and North Dakota. As a result of the inspection, it is alleged that you have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations, Part 195. The items inspected and the probable violations are:#

320195007_NOPV PCP PCO_10112019_text.pdf, page 21. §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 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. On multiple occasions, Magellan did not follow its O&M manual by failing to make necessary records and maps available to personnel for safe operation and maintenance of the pipeline. PHMSA inspectors observed the function of remotely operated valves that involved control room and field personnel. The valves could not be safely operated, because maps and records were not suitably available for use by operating and maintenance personnel during the performance of these operations following the requirements of 195.402 (c)(1). On July 20th, 2016, at Bateman Station in Wisconsin, PHMSA performed an Operator Qualification Task Protocol 9 Evaluation on a remote motor operated valve task. As part of this task the valve was to be remotely operated by the control room. During the performance of this task, involving the field personnel and the pipeline controller, the wrong valve was opened. On September 27th, 2016, at Rockford Station in Illinois, Magellan field personnel called the control room to operate a remote operated valve. The field personnel and the controller had trouble identifying which valve was to be safely operated. On January 25th, 2017, at Magellan’s Control Room, a pipeline controller was unable to produce maps or records that could properly identify the location of valves to field personnel. 2#

320195007_NOPV PCP PCO_10112019_text.pdf, page 32. § 195.428 Overpressure safety devices and overfill protection systems. (a) Except as provided in paragraph (b) of this section, each operator shall, at intervals not exceeding 15 months, but at least once each calendar year, or in the case of pipelines used to carry highly volatile liquids, at intervals not to exceed 7 1/2 months, but at least twice each calendar year, inspect and test each pressure limiting device, relief valve, pressure regulator, or other item of pressure control equipment to determine that it is functioning properly, is in good mechanical condition, and is adequate from the standpoint of capacity and reliability of operation for the service in which it is used. Magellan did not inspect overfill protection on breakout tanks used to store Highly Volatile Liquids (HVL) at least twice a year not to exceed 7 ½ months. HVL tanks 2021, 2022, 2023 and 2024 located at Magellan’s Des Moines, Iowa terminal were put in to service in 2009. Records presented to inspectors showed that no inspection of the overfill protection system was performed after the tanks were put into service until June 30, 2016. Proposed Civil Penalty 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. The Compliance Officer has reviewed the circumstances and supporting documentation involved in the above probable violation(s) and has recommended that you be preliminarily assessed a civil penalty of $118,000 as follows: Item number PENALTY 1 $51,400 2 $66,600 Proposed Compliance Order With respect to item 1 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to Magellan Pipeline Company, LP1. Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice. 3#

320195007_NOPV PCP PCO_10112019_text.pdf, page 4Response to this Notice Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. All material submit in response to this enforcement action may be 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). If you do not respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice and authorizes 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. In your correspondence on this matter, please refer to CPF 3-2019-5007 and for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Allan C. Beshore, PE Director, Central Region, OPS Pipeline and Hazardous Materials Safety Administration Enclosure: Proposed Compliance Order Response Options for Pipeline Operators in Enforcement Proceedings 4#

320195007_NOPV PCP PCO_10112019_text.pdf, page 5PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Magellan Pipeline Company, LP a Compliance Order incorporating the following remedial requirements to ensure the compliance of Magellan Pipeline Company, LP with the pipeline safety regulations: 1. In respect to Item Number 1 of the Notice, Magellan must develop adequate records needed for field and control room personnel to positively identify the location valves necessary for the safe operation of the pipeline. 2. 3. Within sixty (60) days after receipt of a Final Order, Magellan must submit documentation to the Director, Central Region, demonstrating that Item 1 and have been completed. It is requested (not mandated) that Magellan Pipeline Company, LP maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Allan Beshore, Director, Central Region, Pipeline and Hazardous Materials Safety Administration. It is requested that these costs 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. 5#

320195007_Final Order_05142021_(16-152632S)_text.pdf, page 1Official PDFMay 14, 2021 VIA ELECTRONIC MAIL TO: mike.mears@magellanlp.com Mr. Michael N. Mears President and Chief Executive Officer Magellan Midstream Partners, LP One Williams Center PO Box 22186 Tulsa, Oklahoma 74172-2186 Re: CPF No. 3-2019-5007 Dear Mr. Mears: Enclosed please find the Final Order issued in the above-referenced case. It makes findings of violation, assesses a reduced civil penalty of $97,400, and specifies actions that need to be taken by your subsidiary, Magellan Pipeline Company, LP, to comply with the pipeline safety regulations. The penalty payment terms are set forth in the Final Order. When the civil penalty has been paid and the terms of the compliance order completed, as determined by the Director, Central Region, this enforcement action will be closed. Service of the Final Order by electronic mail is effective upon the date of transmission as provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Alan K. Mayberry Associate Administrator for Pipeline Safety Enclosure cc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA Mr. Jason Smith, Vice President, Asset Integrity, Magellan Pipeline Company, LP jason.smith@magellanlp.com Mr. Mark Materna, Director, Pipeline Integrity, Magellan Pipeline Company, LP mark.materna@magellanlp.com CONFIRMATION OF RECEIPT REQUESTED#

320195007_Final Order_05142021_(16-152632S)_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 ) Magellan Pipeline Company, LP ) CPF No. 3-2019-5007 a subsidiary of Magellan Midstream Partners, LP ) ) ) ) Respondent. ) ________________________________________________) FINAL ORDER Between May 16, 2016, and January 25, 2017, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and records of Magellan Pipeline Company, LP (Magellan or Respondent) in Oklahoma, Kansas, Iowa, Illinois, Minnesota, Nebraska, South Dakota, North Dakota, and Wisconsin. Magellan is a subsidiary of Magellan Midstream Partners, LP, which owns and operates approximately 12,000 miles of liquids pipelines throughout the United States.1 As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent, by letter dated October 11, 2019, 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 Magellan had violated 49 C.F.R. §§ 195.402(a) and 195.428(a) and proposed assessing a civil penalty of $118,000 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 to respond, Magellan Midstream Partners, LP, on behalf of its subsidiary, responded to the Notice by letter dated December 16, 2019 (Response). The company contested one allegation of violation, offered additional information in response to the Notice, requested that the proposed civil penalty be reduced, and requested the withdrawal of the compliance order. Respondent did not request a hearing and therefore has waived its right to one. 1 Liquid Pipeline Tariffs, Magellan Midstream Partners, LP, available at https://www magellanlp.com/WhatWeDo/LiquidPipelineTariffs.aspx (Last accessed February 25, 2021).#

320195007_Final Order_05142021_(16-152632S)_text.pdf, page 3CPF 3-2019-5007 Page 2 FINDINGS OF VIOLATION The Notice alleged that Respondent violated 49 C.F.R. Part 195, as follows: Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a), 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 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. The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a) by failing to follow its manual of written procedures for conducting normal operations and maintenance activities and handling abnormal operations and emergencies. Specifically, the Notice alleged that on multiple occasions, Magellan failed to make necessary records and maps available to personnel for the safe operation and maintenance of its pipeline, as required by § 195.402(c)(1), as well as its operation and maintenance (O&M) manual. The Notice alleged that as a result, remotely operated valves could not be safely operated because maps and records were not suitably available for use by personnel during the performance of these operations. The Notice specified three instances when the PHMSA inspector observed this alleged violation: (1) on July 20, 2016, at the Bateman Station in Wisconsin when Magellan personnel opened the wrong valve during an operator qualification task protocol evaluation; (2) on September 27, 2016, at Rockford Station in Illinois when Magellan field personnel and control room operator had trouble identifying a remote operated valve; and (3) on January 25, 2017, at Magellan’s Control Room when a pipeline controller was unable to produce maps or records that could properly identify the location of valves to field personnel. In its response, Magellan did not contest the allegation of violation that occurred on July 20, 2016, at Bateman Station. However, Magellan contested the allegations referenced on September 27, 2016, at Rockford Station, and January 25, 2017, at the Magellan Control Room. Magellan claimed that the facts in the Notice and the Violation Report do not prove that a violation occurred on these dates. Concerning the September 27, 2016 allegation of violation, Magellan argued that the PHMSA inspector requested that Magellan operate the mainline valve#

320195007_Final Order_05142021_(16-152632S)_text.pdf, page 4CPF 3-2019-5007 Page 3 by calling the Magellan Control Room and requesting that the valve be opened. Magellan claimed that the local Magellan representative described the valve to the Controller in Magellan’s Control Room to ensure the correct valve was operated. Magellan also noted that PHMSA records for the September 27, 2016 inspection included the following note: “Operated the valve remotely and local.” Regarding the January 25, 2017 allegation of violation, Magellan argued that during an impromptu visit to the Control Room, the PHMSA inspector asked if the valve numbering on the supervisory control and data acquisition (SCADA) screen matched the numbering in the field and inquired if the Magellan representative had access to the piping and instrumentation diagrams (P&IDs) to confirm specific valve locations. The representative indicated that he did not. In its Response, Magellan explained that all Magellan employees have access to maps and records, including P&IDs, through its Intranet Webpage, which is available in the Control Room. However, controllers in the Control Room are not typically expected to access P&IDs, as other Magellan programs and processes are in place to ensure accurate SCADA screens and nomenclature to reduce the complexity of operations for controllers. Upon review of the additional information provided by Magellan, pursuant to § 190.209(b)(7), the Director provided a written evaluation of the response material and recommended that the September 27, 2016 Rockford Station and the January 25, 2017 Magellan Control Room instances of violation be withdrawn.2 After considering the additional information and explanations provided by Magellan, I agree. However, as noted above, the allegation of violation occurring on July 20, 2016, at Bateman Station in Wisconsin was uncontested. Accordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R. § 195.402(a) by failing to follow its manual of written procedures for conducting normal operations and maintenance activities and handling abnormal operations and emergencies on July 20, 2016, at the Bateman Station in Wisconsin. The September 27, 2016 Rockford Station and the January 25, 2017 Magellan Control Room instances of violation are hereby withdrawn. Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.428(a), which states: § 195.428 Overpressure safety devices and overfill protection systems. (a) Except as provided in paragraph (b) of this section, each operator shall, at intervals not exceeding 15 months, but at least once each calendar year, or in the case of pipelines used to carry highly volatile liquids, at intervals not to exceed 7 ½ months, but at least twice each calendar year, inspect and test each pressure limiting device, relief valve, pressure regulator, or other item of pressure control equipment to determine that it is functioning properly, is in good mechanical condition, and is adequate from the standpoint of capacity and reliability of operation for the service in which it is used. The Notice alleged that Respondent violated 49 C.F.R. § 195.428(a) by failing to inspect and test 2 Region Recommendation, at 2 (on file with PHMSA).#

320195007_Final Order_05142021_(16-152632S)_text.pdf, page 5CPF 3-2019-5007 Page 4 each pressure limiting device, relief valve, pressure regulator, or other item of pressure control equipment to determine that it is functioning properly, is in good mechanical condition, and is adequate from the standpoint of capacity and reliability of operation for the service in which it is used, at intervals not exceeding 7 ½ months, but at least twice each calendar year, for pipelines used to carry highly volatile liquids (HVL). Specifically, the Notice alleged that Magellan did not inspect overfill protection on breakout tanks used to store HVL at least twice a year, with intervals not to exceed 7 ½ months. The Notice alleged that four HVL tanks located at Magellan's Des Moines, Iowa terminal were put into service in 2009, yet records presented to the PHMSA inspector showed that no inspection of the overfill protection system was performed after the tanks were put into service until June 30, 2016.3 Respondent did not contest this allegation of violation. Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 195.428(a) by failing to inspect and test the overfill protection system on four breakout tanks used to store HVL to determine that it is functioning properly, is in good mechanical condition, and is adequate from the standpoint of capacity and reliability of operation for the service in which it is used, at intervals not exceeding 7 ½ months, but at least twice each calendar year. These findings of violation will be considered prior offenses in any subsequent enforcement action taken against Respondent. ASSESSMENT OF PENALTY Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed $200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any related series of violations.4 In determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature, circumstances, and gravity of the violation, including adverse impact on the environment; the degree of Respondent’s culpability; the history of Respondent’s prior offenses; any effect that the penalty may have on its ability to continue doing business; the good faith of Respondent in attempting to comply with the pipeline safety regulations; and self-disclosure or actions to correct a violation prior to discovery by PHMSA. In addition, I may consider the economic benefit gained from the violation without any reduction because of subsequent damages, and such other matters as justice may require. The Notice proposed a total civil penalty of $118,000 for the violations cited above. Item 1: The Notice proposed a civil penalty of $ 51,400 for Respondent’s violation of 49 C.F.R. § 195.402(a), for failing to follow its manual of written procedures for making construction records, maps, and operating history available as necessary for safe operation and maintenance. As explained in detail above, Magellan contested two of the three instances of violation and based on the additional information provided, those two instances have been withdrawn. Regarding the civil penalty, Magellan also argued that the history of prior offenses should be 3 The four tanks are identified as 2021, 2022, 2023, and 2024. 4 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.#

320195007_Final Order_05142021_(16-152632S)_text.pdf, page 6CPF 3-2019-5007 Page 5 corrected because six of the eight prior offenses listed in the Violation Report occurred outside of the five-year period prior to the date the Notice was issued. Having reviewed the information, I agree. Accordingly, I find that the record supports a reduction in the number of instances of violation from three to one, as well as reduction in the number of prior offenses from eight findings of violation to two. Based upon the foregoing, I assess Respondent a reduced civil penalty of $38,000 for the violation of 49 C.F.R. § 195.402(a). Item 2: The Notice proposed a civil penalty of $66,600 for Respondent’s violation of 49 C.F.R. § 195.428(a), for failing to inspect and test the overfill protection system on four breakout tanks used to store HVL at intervals not exceeding 7 ½ months, but at least twice each calendar year. Magellan did not contest this allegation of violation but similarly argued that the history of prior offenses should be corrected because six of the eight prior offenses listed occurred outside of the five-year period prior to the date the Notice was issued. Once again, having reviewed the information, I agree. Accordingly, I find that the record supports a reduction in the number of prior offenses from eight findings of violation to two. Based upon the foregoing, I assess Respondent a reduced civil penalty of $59,400 for violation of 49 C.F.R. § 195.428(a). In summary, having reviewed the record and considered the assessment criteria for each of the Items cited above, I assess Respondent a total reduced civil penalty of $97,400. Payment of the civil penalty must be made within 20 days of service. Federal regulations (49 C.F.R. § 89.21(b)(3)) require such payment to 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 (AMK-325), Federal Aviation Administration, Mike Monroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169. The Financial Operations Division telephone number is (405) 954-8845. Failure to pay the $97,400 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 district court of the United States. COMPLIANCE ORDER The Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49 C.F.R. § 195.402(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.#

320195007_Final Order_05142021_(16-152632S)_text.pdf, page 7CPF 3-2019-5007 Page 6 With regard to the violation of § 195.402(a) (Item 1), Respondent requested that the compliance order be withdrawn because the company has already implemented the requested corrective action. Magellan stated that “[a]s part of the ongoing dialogue during the 2016 inspection, Magellan implemented corrective actions regarding the requirements for remote controlled valve identification and physical tagging of the asset.” Magellan contended that these requirements were incorporated into its procedure 7.13-ADM-1035, Mainline Valve Inspection Procedure, a copy of which was provided to PHMSA. Pursuant to § 190.209(b)(7), the Director provided a written evaluation of the response material submitted by Respondent and stated he did not find the provided information adequate to satisfy the proposed compliance order.5 Specifically, the Director explained that Magellan needs to provide its O&M Form 07-FORM-1035 for all mainline valves at the Bateman Station necessary for the safe operation of the pipeline, within the scope of the inspection, to document that it has followed its O&M procedure 7.13-ADM-1035 Sections 3.17, 3.1.18.2.1 and 3.1.19.1.1.6 While I appreciate Magellan’s early efforts to comply with the Compliance Order by revising and providing its Mainline Valve Inspection Procedure, the Compliance Order’s focus is on the development of records needed for field and control room personnel to positively identify the location of valves; it did not request revised procedures. Since Magellan has not provided any records field and control room personnel will use to positively identify the location of valves, the Compliance Order is not withdrawn as set forth below. 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. With respect to the violation of § 195.402(a) (Item 1), Respondent must develop adequate records needed for field and control room personnel to positively identify the location valves necessary for the safe operation of the pipeline. 2. Within sixty (60) days after receipt of a Final Order, Magellan must submit documentation to the Director, Central Region, demonstrating that Item 1 and have been completed. 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 and demonstrating good cause for an extension. PHMSA requests that Respondent maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to the Director. It is requested that these costs 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. 5 Region Recommendation, at 3 (on file with PHMSA). 6 Id.#

320195007_Final Order_05142021_(16-152632S)_text.pdf, page 8CPF 3-2019-5007 Page 7 Failure to comply with this Order may result in the administrative assessment of civil penalties not to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), 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. Under 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final Order to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this Final Order by Respondent. Any petition submitted must contain a statement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.243. The filing of a petition automatically stays the payment of any civil penalty assessed. The other terms of the order, including corrective action, remain in effect unless the Associate Administrator, upon request, grants a stay. The terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R. § 190.5. May 14, 2021 ___________________________________ __________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety#

320195007_Closure Letter_11192021_(16-152632S)_text.pdf, page 1Official PDFVIA ELECTRONIC MAIL: Mike.Mears@magellanlp.com, Jason.Smith@magellanlp.com and Mark.Materna@magellanlp.com November 19, 2021 Mr. Michael N. Mears President and Chief Executive Officer Magellan Midstream Partners, LP One Williams Center PO Box 22186 Tulsa, Oklahoma 74172-2186 Re: CPF No. 3-2019-5007 Dear Mr. Mears: On May 14, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to Magellan Pipeline Company, LP a Final 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, Gregory A. Ochs Director, Central Region Pipeline and Hazardous Materials Safety Administration Cc: Jason Smith VP Asset Integrity, jason.smith@magellanlp.com Mark Materna, Director Pipeline Integrity, mark.materna@magellanlp.com#