LAYLINE OIL AND GAS LLC — Warning Letter

32021025WL_Warning Letter_03312021_(21-207972)_text.pdf, page 1Official PDFWARNING LETTER VIA ELECTRONIC MAIL TO: whyman@laylineenergy.com March 31, 2021 Wayne Hyman Vice President Layline Oil and Gas LLC 820 Gessner Suite 1145 Houston, TX 77024 CPF 3-2021-025-WL Dear Mr. Hyman: On December 10, 2020, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected Layline Oil and Gas LLC compliance with the National Pipeline Mapping System (NPMS) submittal requirement for calendar year 2019. As a result of the inspection, it is alleged that you have committed probable violation(s) of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected and the probable violation(s) are: 1. § 191.29 - National Pipeline Mapping System. (a) … (b) The information required in paragraph (a) of this section must be submitted each year, on or before March 15, representing assets as of December 31 of the previous year. If no changes have occurred since the previous year’s submission, the operator must comply with the guidance provided in the NPMS Operator Standards manual available at www.npms.phmsa.dot.gov or contact the PHMSA Geographic Information Systems Manager at (202) 366-4595. Layline Oil and Gas LLC failed to submit information required in paragraph (a) of § 191.29, on or before March 15, representing its assets as of December 31 of the previous year. Specifically, Layline Oil and Gas LLC failed to submit to PHMSA 1) Geospatial data, attributes, metadata and transmittal letter appropriate for use in the National Pipeline Mapping System; 2) the name of and address for the operator; and 3) the name and contact information of a pipeline company employee, to be displayed on a public Web site, who will serve as a contact for questions from#

32021025WL_Warning Letter_03312021_(21-207972)_text.pdf, page 22 the general public about the operator's NPMS data for its assets as of December 31, 2019, by the due date of March 15, 2020. Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a related series of violations. For violation occurring on or after July 31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related series of violations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679. 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. 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 complete an accurate and acceptable calendar year 2020 NPMS submittal for all of the gas transmission pipelines in your calendar year 2020 Annual Report within 30 days of receiving this letter. Failure to do so may result in Layline Oil and Gas 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 3-2021-025-WL. 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, Gregory A. Ochs, Director, Central Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration Cc: David Chislea, Program Manager, chislead@michigan.gov#