TALLGRASS POWDER RIVER GATEWAY, LLC — Notice of Probable Violation

case documentOfficial PDF32021045NOPV_PCP PCO_11052021_(20-172259).pdf#

case documentOfficial PDF32021045NOPV_PCP PCO_11052021_(20-172259)_text.pdf#

32021045NOPV_Consent Agreement and Order_03292022_(20-172259)_text.pdf, page 1Official PDFMarch 29, 2022 VIA ELECTRONIC MAIL TO: bill.moler@tallgrassenergylp.com Mr. William Moler Chief Executive Officer Tallgrass Powder River Gateway, LLC 4200 W. 115th St. Suite 350 Leawood, Kansas 66211 CPF No. 3-2021-045-NOPV Dear Mr. Moler: Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Tallgrass Powder River Gateway, LLC (Tallgrass), which was executed on March 25, 2022. Service of the Consent Order and Consent Agreement by electronic mail is deemed effective upon the date of transmission and acknowledgement of receipt, or as otherwise provided under 49 C.F.R. § 190.5. Sincerely, Alan K Mayberry Associate Administrator for Pipeline Safety Enclosures: Consent Agreement and Consent Order Cc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA Ms. Catherine Little, outside counsel for Tallgrass, catherine.little@troutman.com Ms. Jennifer Eckels, Compliance Manager, Tallgrass, jennifer.eckels@tallgrass.com CONFIRMATION OF RECEIPT REQUESTED#

32021045NOPV_Consent Agreement and Order_03292022_(20-172259)_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 ) Tallgrass Powder River Gateway, LLC, ) CPF No. 3-2021-045-NOPV ) ) ) Respondent. ) ____________________________________) CONSENT ORDER By letter dated November 5, 2021, the Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety (PHMSA), issued a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Notice) to Tallgrass Powder River Gateway, LLC (Tallgrass or Respondent). In response to the Notice, Respondent did not contest Items 1 or 2, requested a reduction in the proposed civil penalty for Item 2, and requested a hearing on Item 3, and asked for the opportunity to meet informally with PHMSA to discuss the issues raised (Response). Respondent and PHMSA (the Parties) subsequently met on several occasions to discuss the issues raised in the Response. As a result of those discussions and without admission, Respondent has agreed to withdraw its hearing request and accept the findings of violation for Items 2 and 3 of the Notice, subject to the clarification for Item 3 as set forth below, pay a reduced civil penalty in the amount of $25,920 for Item 2, and undertake certain corrective measures. Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this Order. Tallgrass is hereby ordered to comply with the terms of the Consent Agreement, effective immediately. Pursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the assessment of civil penalties as set forth in 49 C.F.R. § 190.223. The terms and conditions of this Consent Order are effective upon service in accordance with 49 C.F.R. § 190.5. March 29, 2022 ___________________________________ __________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety#

32021045NOPV_Consent Agreement and Order_03292022_(20-172259)_text.pdf, page 3U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 In the Matter of ) Tallgrass Powder River Gateway, LLC, ) CPF No. 3-2021-045-NOPV ) ) ) Respondent. ) ____________________________________) CONSENT AGREEMENT From August 2, 2020, to October 25, 2020, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected Tallgrass Powder River Gateway, LLC’s (Tallgrass or Respondent) records and facilities in Lakewood, Colorado. As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent, by letter dated November 5, 2021, a Notice of Probable Violation, Proposed Civil Penalty and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice alleged that Respondent committed probable violations of two provisions of 49 C.F.R. Part 195 (Items 2 and 3), proposed ordering Respondent to take certain measures to correct the alleged violations, and pay a proposed civil penalty in the amount of $58,400 associated with one item. Another item (Item 1) was brought as a warning requiring no further action by Tallgrass. In response to the Notice, Respondent did not contest Items 1 or 2, requested a reduction in the proposed civil penalty for Item 2, and requested a hearing on Item 3, and asked for the opportunity to meet informally with PHMSA to discuss the issues raised (Response). Respondent and PHMSA (the Parties) subsequently met on several occasions to discuss the issues raised in the Response. As a result of those discussions and without admission, Respondent has agreed to withdraw its hearing request and accept the findings of violation for Items 2 and 3 of the Notice, subject to the clarification for Item 3 as set forth below, pay a reduced civil penalty in the amount of $25,920 for Item 2, and undertake certain corrective measures. Having agreed that settlement of this enforcement action will avoid further administrative proceedings or litigation and will serve the public interest by promoting safety and protection of the environment, pursuant to 49 C.F.R. Part 190, and upon consent and agreement of Respondent and PHMSA, the Parties hereby agree as follows: 1#

32021045NOPV_Consent Agreement and Order_03292022_(20-172259)_text.pdf, page 4I. General Provisions: 1. Respondent acknowledges that as the operator of the pipeline facilities subject to the Notice, Respondent and its referenced hazardous liquid pipeline facilities are subject to the jurisdiction of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder. For purposes of this Agreement, Respondent acknowledges that it received proper notice of PHMSA's action in this proceeding and that the Notice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq., and the regulations and orders issued thereunder. 2. After Respondent returns this signed Agreement to PHMSA, the Agency’s representative will present it to the Associate Administrator for Pipeline Safety, recommending that the Associate Administrator adopt the terms of this Agreement by issuing an administrative order (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement constitute an offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate Administrator will issue a Consent Order incorporating the terms of this Agreement 3. Respondent consents to the issuance of the Consent Order, and hereby waives any further procedural requirements with respect to its issuance. Respondent waives all rights to contest the adequacy of notice, or the validity of the Consent Order or this Agreement, including all rights to administrative or judicial hearings or appeals, except as set forth herein. 4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its officers, directors, and employees, and its successors, assigns, or other entities or persons otherwise bound by law. Respondent agrees to provide a copy of this Agreement and any incorporated work plans and schedules to all of Respondent’s officers, employees, and agents whose duties might reasonably include compliance with this Agreement. 5. This Agreement constitutes the final, complete and exclusive agreement and understanding between the Parties with respect to the settlement embodied in this Agreement. The Parties acknowledge that there are no representations, agreements or understandings relating to settlement other than those expressly contained in this Agreement, except that the terms of this Agreement may be construed by reference to the Notice. 6. Nothing in this Agreement affects or relieves Respondent of its responsibility to comply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to bring enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the regulations and orders issued thereunder, or any other provision of Federal or State law. 7. For all transfers of ownership or operating responsibility of Respondent’s pipeline system referenced herein, Respondent will provide a copy of this Agreement to the prospective transferee at least 30 days prior to such transfer. Respondent will provide written notice of the transfer to the PHMSA Central Regional Director no later than 60 days after the transfer occurs. 2#

32021045NOPV_Consent Agreement and Order_03292022_(20-172259)_text.pdf, page 5Upon issuance of the Consent Order, the Parties agree to the following terms. 8. This Agreement does not waive or modify any Federal, State, or local laws or regulations that are applicable to Respondent’s pipeline systems. This Agreement is not a permit, or a modification of any permit, under any Federal, State, or local laws or regulations. Respondent remains responsible for achieving and maintaining compliance with all applicable Federal, State, and local laws, regulations and permits. 9. This Agreement does not create rights in, or grant any cause of action to, any third party not party to this Agreement. The U.S. Department of Transportation is not liable for any injuries or damages to persons or property arising from acts or omissions of Respondent or its officers, employees, or agents carrying out the work required by this Agreement. Respondent agrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents, and representatives from any and all causes of action arising from any acts or omissions of Respondent or its contractors in carrying out any work required by this Agreement. 10. Agreement. Respondent neither admits nor denies any allegation or conclusion in the Notice or this Agreement but agrees for purposes of this Agreement to comply with the terms of this 11. II. Warning Item: 12. Item 1: 49 C.F.R. § 195.404(c)(3): The Notice alleged that Respondent failed to maintain inspection records for a single calendar year related to the maintenance and testing of two overpressure safety devices as required. Respondent maintained inspection records for the two overpressure safety devices for the other time period requested and has taken steps to correct the underlying causes of the missing records. This item was brought as a warning requiring no further action by Respondent. Respondent did not contest this Warning Item. This Warning Item does not constitute a finding of violation for any purpose, and no further action by Respondent is necessary to achieve compliance. III. Findings of Violation: 13. Item 2: 49 C.F.R. § 195.406(b): The Notice alleged three instances where Respondent failed to provide adequate controls and protective equipment to ensure that the pressure in its pipelines, during surges or other variations from normal operation, did not exceed 110 percent of the established maximum operating pressure. Respondent did not contest this allegation of violation given that the three instances were self-identified, Respondent took steps to prevent their recurrence, and voluntarily disclosed them to PHMSA in advance of the inspection. As such, PHMSA finds a violation of 49 C.F.R. § 195.406(b). This violation may be considered by PHMSA as a prior offense in any future PHMSA enforcement action taken against Respondent. 14. Item 3: 49 C.F.R. § 195.452(l)(1)(ii): The Notice alleged that Respondent failed to maintain records for review during an inspection of actions taken to mitigate the threat of dead legs at the Guernsey and Wyoming terminals. During the informal meetings between the 3#

32021045NOPV_Consent Agreement and Order_03292022_(20-172259)_text.pdf, page 6Parties in March 2022, Respondent provided records confirming the preventative and mitigative measures it took at the relevant facilities for 2019 and 2020. Respondent neither admits nor denies the allegation of violation for this item given the existence of the records at the time of inspection, but, for purposes of settlement, agrees to accept the finding of violation. As such, PHMSA finds a violation of 49 C.F.R. § 195.452(l)(1)(ii) for not making records available at the time of inspection. This violation may be considered by PHMSA as a prior offense in any future PHMSA enforcement action taken against Respondent. IV. Civil Penalty: 15. Item 2: The Notice proposed assessing a civil penalty in the amount of $58,400 for Item 2. In its Response, and during the informal meetings between the Parties, Respondent provided additional information related to measures it undertook prior to the inspection after discovering, and self-reporting, the noncompliance. Based on the information provided, PHMSA agrees to reduce the proposed civil penalty under the culpability factor. As such, Respondent shall pay a reduced civil penalty in the amount of $25,920, to be paid in full no later than 30 days from the Effective Date of this Agreement. V. Compliance Order: 16. Item 2: The Notice proposed certain compliance order actions to address the non-compliance alleged in the Notice. Respondent did not contest the Proposed Compliance Order, but requested clarification that the compliance order actions apply to only the Powder River Gateway pipeline, and that Respondent may prevent MOP exceedance using a range of “adequate controls and protective equipment,” allowed under § 195.406(b), and not only surge relief devices as specified in the Proposed Compliance Order. PHMSA agrees with Respondent’s requests, and clarifies that the proposed actions set forth in this paragraph are limited to the Powder River Gateway pipeline, and that Respondent may use any means of adequate and protective equipment allowed under § 195.406(b) to prevent MOP exceedance. As such, Respondent must undertake the following corrective measures: (a) Respondent must evaluate the Powder River Gateway pipeline to ensure that its pipeline system is protected from overpressure using a means of surge protection, such as installing surge relief devices as necessary, or any other appropriate method allowable by the regulation. (b) In its evaluation, Respondent must prioritize facilities with repeated occurrences of surge pressure events. Respondent must, within 60 days of the Effective Date of this Agreement, provide the results of the evaluation, and a schedule for corrective action to the Director, PHMSA Central Region. 17. Item 3: The Notice proposed certain compliance order actions to address the non-compliance alleged in the Notice. Respondent must, without admitting or denying the allegation of violation, perform the following corrective measures: (a) Respondent must, within 60 days of the Effective Date of this Agreement, provide to the Director, PHMSA Central Region, a comprehensive list of 4#

32021045NOPV_Consent Agreement and Order_03292022_(20-172259)_text.pdf, page 7facilities documenting the specific location of all “dead leg” pipe segments in HCA facilities on the Powder River Gateway pipeline. The list must include, to the extent available, relevant attributes of each segment (i.e., age of pipe, wall thickness, coating type)). (b) Additionally, Respondent must include an outline of planned preventive maintenance activities for each segment for the 12 months after the Effective Date of this Agreement. VI. Enforcement: 18. This Agreement is subject to all enforcement authorities available to PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties under 49 U.S.C. § 60122, of up to $225,134 per violation for each day the violation continues and referral of the case to the Attorney General for judicial enforcement, if PHMSA determines that Respondent is not complying with the terms of this Agreement in accordance with determinations made by the Director, or if appealed, in accordance with decisions of the Associate Administrator. The maximum civil penalty amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223. VII. Dispute Resolution: 19. The Director and Respondent will informally attempt to resolve any disputes arising under this Agreement, including but not limited to any decision of the Director. If Respondent and the Director are unable to informally resolve the dispute within 15 calendar days after the dispute is first raised, in writing, to the Director, Respondent may submit a written request for a determination resolving the dispute from the Associate Administrator for Pipeline Safety, PHMSA. Such request must be made in writing and provided to the Director, counsel for the Central Region, and to the Associate Administrator for Pipeline Safety, no later than 10 calendar days from the 15 day deadline for informal resolution referenced in this paragraph. Along with its request, Respondent must provide the Associate Administrator with all information Respondent believes is relevant to the dispute. Decisions of the Associate Administrator under this paragraph will constitute final agency action. The existence of a dispute and PHMSA’s consideration of matters placed in dispute will not excuse, toll, or suspend any term or timeframe for completion of any work to be performed under this Agreement during the pendency of the dispute resolution process, except as agreed by the Director or the Associate Administrator in writing, or ordered by a court of competent jurisdiction. IX. Effective Date 20. The term "Effective Date," as used herein, is the date on which the Consent Order is issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement. X. Modification 21. The terms of this Agreement may be modified by mutual agreement of the Parties. Such modifications must be in writing and signed by both parties. 5#

32021045NOPV_Consent Agreement and Order_03292022_(20-172259)_text.pdf, page 8X. Ratification 22. The Parties’ undersigned representatives certify that they are fully authorized to enter into the terms and conditions of this Agreement and to execute and legally bind such party to this document. 23. The Parties hereby agree to all conditions and terms of this Agreement. [Signature Lines on Following Page] 6#

32021045NOPV_Consent Agreement and Order_03292022_(20-172259)_text.pdf, page 9For Tallgrass Powder River Gateway, LLC: Date For PHMSA: Date 7#

32021045NOPV_PHC Hearing Scheduled_02022022_(20-172259)_text.pdf, page 1Official PDFFebruary 2, 2022 VIA ELECTRONIC MAIL TO: jennifer.eckels@tallgrassenergylp.com and gregory.ochs@dot.gov Ms. Jennifer Eckels Manager – Compliance Tallgrass Energy, LP 370 Van Gordon Street Lakewood, Colorado 80228 Mr. Gregory Ochs Director, Central Region Pipeline and Hazardous Materials Safety Administration 901 Locust Street, Suite 480 Kansas City, Missouri 64106 Re: Notice of Hearing, Tallgrass Powder River Gateway, LLC CPF No. 3-2021-045-NOPV Dear Ms. Eckels and Mr. Ochs: In accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the Pipeline and Hazardous Materials Safety Administration in the above-referenced case. The hearing will take place on March 31, 2022, beginning at 9:00 a.m. Central Time. The hearing will be held via videoconference. I will provide the videoconference information prior to the hearing. At least 10 calendar days prior to the hearing (or by March 21, 2022), both parties must submit and exchange any additional written materials they intend to present at the hearing and the name and email address of each attendee. This information should be provided electronically. Materials not submitted by this date may be excluded. If you have any questions, please do not hesitate to contact me. Sincerely, Kristin Baldwin Presiding Official cc: Mr. William Moler, President and Chief Executive Officer, Tallgrass Energy, LP, bill.moler@tallgrassenergylp.com Mr. Joseph Hainline, Counsel, Central Region, Office of Pipeline Safety, PHMSA, joseph.hainline@dot.gov#

32021045NOPV_Op Resp to Notice and Req for Hearing and Prelim Stmnt of Issues (Part 1)_01042022_(20-172259).pdf, page 1Official PDFVia Email to Gregory.Ochs@DOT.gov January 4, 2022 Mr. Gregory Ochs Director, Central Region Pipeline and Hazardous Materials Safety Administration 901 Locust Street, Suite 462 Kansas City, MO 64106 RE: CPF No. 3-2021-045-NOPV Request for Informal Conference Request for a Hearing and Preliminary Statement of Issues Written Response Dear Mr. Ochs, Thank you for your December 2, 2021, letter granting Tallgrass Powder River Gateway, LLC (Tallgrass) additional time to respond to the above-referenced Notice of Probable Violation, Proposed Civil Penalty and Proposed Compliance Order (NOPV) issued by the Pipeline and Hazardous Materials Safety Administration (PHMSA) on November 5, 2021. As described in the attached, Tallgrass requests an informal conference to attempt to resolve certain Items contained in the NOPV. In order to preserve its rights, Tallgrass also submits a Request for Hearing and Preliminary Statement of Issues pursuant to 49 C.F.R. § 190.211. Tallgrass hopes that the hearing will be unnecessary, and that the parties can resolve this matter informally. For those NOPV Items not subject to the Request for Informal Conference and Request for Hearing, Tallgrass provides written responses in the attached. I will reach out to you by phone regarding scheduling an informal conference. In the meantime, please feel free to contact me if you have any questions. Sincerely, Jennifer Eckels Manager - Compliance#

32021045NOPV_Op Resp to Notice and Req for Hearing and Prelim Stmnt of Issues (Part 1)_01042022_(20-172259).pdf, page 2370 Van Gordon Street Lakewood, CO 80228 Phone: (303) 763-3486 CC: Tallgrass: Byron Gale, Jay Meyers, Jarid Kling, Nicole Longwell, Crystal Heter PHMSA: Gabriel Hodill, James Bunn Enclosure: Request for Informal Conference Regarding NOPV Item 3; Request for Hearing and Preliminary Statement of Issues Regarding NOPV Item 3; and Written Response to NOPV Items 1 and 2.#

32021045NOPV_PHC Hearing Canceled_06022022_(20-172259)_text.pdf, page 1Official PDFDate: June 2, 2022 From: Ryan McClure To: File Re: Withdrawal of Hearing Request, Tallgrass Powder River Gateway, LLC 3-2021-045-NOPV On March 29, 2022, Tallgrass Powder River Gateway, LLC, by email, withdrew its request for a hearing for 3-2021-045-NOPV, which it submitted on January 4, 2022. The hearing, scheduled for March 31, 2022, has been cancelled.#

32021045NOPV_Op Resp to Notice and Req for Hearing and Prelim Stmnt of Issues (Part 2)_01042022_(20-172259).pdf, page 1Official PDFU.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY In the Matter of ) Powder River Gateway, LLC, ) CPF No. 3-2021-045-NOPV Respondent. ) ) ) ) REQUEST FOR INFORMAL CONFERENCE, REQUEST FOR HEARING AND PRELIMINARY STATEMENT OF ISSUES FOR NOPV ITEM 3 WRITTEN RESPONSE TO NOPV ITEMS 1 AND 2 I. Request for Informal Conference Regarding NOPV Item 3 Pursuant to 49 U.S.C. § 60117(b)(1)(B), Tallgrass Powder River Gateway, LLC (Tallgrass) respectfully requests an informal meeting to discuss the allegation in Item 3 of the above- referenced Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (NOPV). Tallgrass is hopeful that through further discussion of the facts and circumstances around Item 3 that this portion of the NOPV can be addressed without a hearing. II. Request for Hearing Regarding NOPV Item 3 Pursuant to 49 C.F.R. §§ 190.208(a)(4), 190.208(b)(4), and 190.211(b), Tallgrass respectfully requests an in-person hearing to discuss the alleged violation, proposed civil penalty, and proposed compliance order for Item 3. If a hearing is held, Tallgrass will be represented by counsel at the hearing. III. Preliminary Statement of Issues Tallgrass respectfully contests the allegation of violation, proposed civil penalty and proposed compliance order for Item 3, concerning the Company’s documentation of compliance with PHMSA’s Integrity Management Program requirements at 49 C.F.R. § 195.452(l)(1)(ii). At the hearing, Tallgrass intends to raise the following issues: A. Whether, based on the allegation in the Notice and evidence in the record, PHMSA met 1#

32021045NOPV_Op Resp to Notice and Req for Hearing and Prelim Stmnt of Issues (Part 2)_01042022_(20-172259).pdf, page 2its burden of demonstrating that Tallgrass committed a probable violation of 49 C.F.R. § 195.452(l)(1)(ii). B. Whether Tallgrass can present evidence that it applied its Integrity Management Program to non-line pipe facilities, took preventive and mitigative actions to address internal corrosion threats on those facilities, and documented those actions. C. Whether a miscommunication may have occurred regarding the nature and scope of Tallgrass’ Integrity Management Program. D. Whether the proposed penalty related to Item 3 must be withdrawn. E. Whether the proposed compliance order related to Item 3 is appropriate in scope, consistent with 49 C.F.R. § 195.452, and must be withdrawn. Tallgrass reserves the right to supplement this preliminary statement of issues in response to any additional information or arguments from PHMSA. IV. Response to NOPV Items 1 and 2 Pursuant to 49 C.F.R. §§ 190.208(a)(2) and 190.208(a)(3), Tallgrass provides a written response to Items 1 and 2 of the NOPV. A. Item 1 – 49 C.F.R. § 195.404(c)(3) Tallgrass does not contest the allegation in Item 1 of the NOPV. Tallgrass has taken steps to correct the underlying causes of the missing pressure transmitter maintenance and inspection records. B. Item 2 – 49 C.F.R. § 195.406(b) Tallgrass does not contest the allegation in Item 2 of the NOPV. Tallgrass seeks a reduction of the Proposed Civil Penalty under the gravity and culpability penalty assessment factors at 49 C.F.R. §§ 190.225(a)(1) and 190.225(a)(2). Regarding the culpability factor, Tallgrass identified the MOP exceedances listed in the Notice and took steps to prevent their recurrence, well in advance of the start of PHMSA’s inspection, which began on August 2, 2020. Specifically, with respect to the MOP exceedance at Guernsey South (ERL 1715), Tallgrass investigated the event, imposed a pressure restriction and installed surge relief at Guernsey in April 2020, several months before PHMSA began its 2#

32021045NOPV_Op Resp to Notice and Req for Hearing and Prelim Stmnt of Issues (Part 2)_01042022_(20-172259).pdf, page 3inspection.1 With regard to the MOP exceedances at the Pronghorn Station (ERL 1802 and ERL 1807), Tallgrass imposed an RPM limit on the mainline pumps via the Management of Change process with a hard setpoint change in its SCADA system on October 31, 2019, in order prevent the sort of transient pressure surges that had occurred. Tallgrass implemented this change well before the start of PHMSA’s inspection on August 2, 2020. Documentation of the RPM limit change, as well as pre- and post-RPM limit change data to demonstrate that the change was implemented, is attached.2 Prior PHMSA final orders have provided a culpability credit where an operator is able to demonstrate self-identification and correction of non-compliance.3 However, in Part E7 of the Violation Report, PHMSA does not credit Tallgrass’ identification and correction of the issue before PHMSA’s inspection.4 Similarly, PHMSA’s Proposed Civil Penalty worksheet does not provide any penalty credit for Tallgrass’ identification and correction of the issue.5 In accordance with PHMSA’s policy on self-identification and correction, as set out in the Proposed Civil Penalty Worksheet and the PHMSA Civil Penalty Summary, PHMSA should provide a -15 point culpability credit for these corrective measures.6 At a point value of $1,728 per point, this should result in a penalty reduction of $25,920. Regarding the gravity factor in Part E6 of the Violation Report, PHMSA provides that the “violation occurred within a HCA or “could affect” HCA...”7 The Violation Report also provides that the “[p]ressure surge affected multiple segments upstream of the event, including HCA segments.8 As a result, in its Proposed Civil Penalty Worksheet, PHMSA added a 17 point gravity adjustment.9 However, at the time of the inspection the Pronghorn Station was not located in, nor could it affect an HCA, and this status has not changed since the inspection. 10 Conversely, the Guernsey South Terminal was located in an HCA in 2020. Documentation demonstrating the non- HCA status of the Pronghorn Station is contained in Attachment 2. 11 In addition, the MOP 1 See PHMSA Violation Report, Exhibit A, 20-172259_ExhibitA_MOC4777_RateReduction_02022020; 20- 172259_ExhibitA_MOC4893_EndPressureRestriction_04172020; 172259_ExhibitA_MOC4914_SurgeInstall_ 04302020. These MOC documents identify the steps that Tallgrass took to prevent recurrence of the MOP exceedance at Guernsey South Station. 2 Tallgrass Management of Change Notification email (Oct. 31, 2019), pre- and post-RPM limit change data. 3 See e.g. Flint Hills Resources, CPF No. 3-2020-5021, Final Order at 5 (Aug. 23, 2021). 4 PHMSA Violation Report p. 17. 5 PHMSA Proposed Civil Penalty Worksheet, culpability section. 6 PHMSA Civil Penalty Summary (Feb. 7, 2020), available at https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/2020-03/civil-penalty-summary-2-7-2020 0.pdf. 7 PHMSA Violation Report p.16, Part E6 – Gravity. 8 Id. 9 PHMSA Proposed Civil Penalty Worksheet, gravity section. 10 Listing of HCA Facilities for the Powder River Gateway system, Appendix O_F-EMP_PRG 2020. This document shows all of the HCA Facilities on this system. The Pronghorn Station is not listed because it was not in nor could it affect an HCA in 2020. 11 Id. 3#

32021045NOPV_Op Resp to Notice and Req for Hearing and Prelim Stmnt of Issues (Part 2)_01042022_(20-172259).pdf, page 4Facility Station Piping MOP (psig) Mainline MOP (psig) 1052 exceedances at both Guernsey South and the Pronghorn station only affected station piping and did not affect any mainline piping. As demonstrated in the table below, the MOPs of the mainlines serving these stations is far above the MOP of the station piping. Guernsey South 285 Pronghorn 285 1480 Tallgrass respectfully requests that PHMSA reduce the gravity points from 17 to 7 points, which would result in an additional reduction of $17,280. This adjustment is reasonable, appropriate and within PHMSA’s discretion because it would reflect the more limited effect of the MOP exceedances on HCA facilities than what was reflected in the Violation Report and Proposed Civil Penalty Worksheet. The only exceedance at an HCA facility was at Guernsey South; the Pronghorn Station is not an HCA facility. This adjustment would also reflect that no mainline HCA piping experienced an MOP exceedance as a result of the station piping exceedances at either facility. Finally, Tallgrass requests that PHMSA clarify the Proposed Compliance Order to reflect that it applies only to the Powder River Gateway pipeline. Tallgrass also requests that PHMSA clarify the Proposed Compliance Order to reflect that Tallgrass may prevent MOP exceedance using a range of “adequate controls and protective equipment,” allowed under § 195.406(b), and not only surge relief devices as presently specified in the Proposed Compliance Order. Respectfully submitted this 4th day of January 2022. Jennifer Eckels Manager - Compliance 370 Van Gordon Street Lakewood, CO 80228 Phone: (303) 763-3486 CC: Tallgrass: Byron Gale, Jay Meyers, Jarid Kling, Nicole Longwell, Crystal Heter PHMSA: Gabriel Hodill, James Bunn 4#

32021045NOPV_Op Resp to Notice and Req for Hearing and Prelim Stmnt of Issues (Part 2)_01042022_(20-172259).pdf, page 5Enclosures: Attachment 1: Tallgrass Management of Change Notification email (Oct. 31, 2019), post-MOC pressure limit settings, and pre- and post-RPM limit change data (Documents hard mainline pump RPM limit put in place to prevent future MOP exceedances at Pronghorn Station) Attachment 2: 2020 Powder River Gateway Facility Equipment Maintenance Plan (Listing of HCA Facilities for the Powder River Gateway System) 5#

32021045NOPV_Closure Letter_10122022_(20-172259)_text.pdf, page 1Official PDFVIA ELECTRONIC MAIL TO: bill.moler@tallgrassenergylp.com; jennifer.eckels@tallgrassenergylp.com; October 12, 2022 William Moler Chief Executive Officer Tallgrass Powder River Gateway, LLC 4200 W. 115th St. Suite 350 Leawood, KS 66211 Re: CPF 3-2021-045-NOPV Dear Mr. Moler: On March 29, 2022, the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Tallgrass Powder River Gateway, LLC (Tallgrass’) entered into a Consent Agreement, which included a Compliance Order, for Tallgrass to take specific actions on its pipeline. Based on our review of the documentation you provided, and confirmation of payment of the civil penalty, it has been determined that Tallgrass has complied with the terms of the Consent Agreement and Compliance 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, OPS Pipeline and Hazardous Materials Safety Administration cc: Jennifer Eckels, Compliance Manager, jennifer.eckels@tallgrassenergylp.com#