NUSTAR PIPELINE OPERATING PARTNERSHIP L.P. — Notice of Probable Violation

party submissionOfficial PDF32023005NOPV_Operator Withdrawal of Hearing Request_07252023_(22-261675).pdf#

case documentOfficial PDF32023005NOPV_PCP PCO_01252023_(22-261675).pdf#

case documentOfficial PDF32023005NOPV_PCP PCO_01252023_(22-261675)_text.pdf#

party submissionOfficial PDF32023005NOPV​_Operator Response to Notice and RFH_02242023_(22-261675).pdf#

32023005NOPV_Consent Agreement and Order_07252023_(22-261675)_text.pdf, page 1Official PDFJuly 25, 2023 VIA ELECTRONIC MAIL TO: Brad.Barron@nustarenergy.com Mr. Brad Barron President and Chief Executive Officer NuStar Pipeline Operating Partnership, L.P. 19003 IH-10 West San Antonio, Texas 78257 CPF No. 3-2023-005-NOPV Dear Mr. Barron: Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and NuStar Pipeline Operating Partnership, L.P., which was executed on July 21, 2023. 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. Thank you for your cooperation in this matter. Sincerely, Alan K. Mayberry Associate Administrator for Pipeline Safety Enclosure: Consent Order and Consent Agreement cc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA Mr. Gary Koegeboehn, Vice President, Pipeline Operations, NuStar, gary.koegeboehn@nustarenergy.com Mr. Chris Rulon, Vice President and Assistant General Counsel, NuStar, chris.rulon@nustarenergy.com Ms. Catherine Little, Counsel for Nustar, Bracewell LLP, catherine.little@bracewell.com CONFIRMATION OF RECEIPT REQUESTED#

32023005NOPV_Consent Agreement and Order_07252023_(22-261675)_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 ) NuStar Pipeline Operating Partnership, LP., ) CPF No. 3-2023-005-NOPV ) ) ) Respondent. ) __________________________________________) CONSENT ORDER By letter dated January 25, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Notice) to NuStar Pipeline Operating Partnership, L.P. (NuStar or Respondent). In response to the Notice, NuStar requested to meet informally with PHMSA to discuss clarification and modification of the Proposed Compliance Order (PCO) requirements (Response). Respondent also requested a hearing to preserve its rights with regard to the same. NuStar and PHMSA (the Parties) subsequently met to discuss the issues raised in the Response. As a result of those discussions, as explained in more detail below, the Parties have agreed to a Consent Agreement which clarifies and modifies the terms of the PCO. Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this Consent Order. NuStar is hereby ordered to comply with the terms of the Consent Agreement pursuant to its terms. 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 U.S.C. § 60122 and 49 C.F.R. § 190.223, or in referral to the Attorney General for appropriate relief in a district court of the United States. The terms and conditions of this Consent Order are effective upon service in accordance with 49 C.F.R. § 190.5. July 25, 2023 __________________________ ______________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety#

32023005NOPV_Consent Agreement and Order_07252023_(22-261675)_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 ) NuStar Pipeline Operating Partnership, L.P., ) CPF No. 3-2023-005-NOPV ) ) ) Respondent. ) __________________________________________) CONSENT AGREEMENT NuStar Pipeline Operating Partnership, L.P. (NuStar or Respondent) operates an anhydrous ammonia pipeline system consisting of approximately 2,000 miles of mainline and lateral pipe with diameters ranging from three to ten inches. The system transports anhydrous ammonia through Louisiana, Arkansas, Missouri, Illinois, Indiana, Iowa, and Nebraska. From September 12 through September 16, 2022, 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.), reviewed records and inspected pipe excavations at three locations on the NuStar’s anhydrous ammonia system, Cabot to Franklin line segment, in Arkansas. The review and inspection were conducted in coordination with NuStar, which, after being informed by PHMSA of potential issues with a former employee, was in the process of voluntarily excavating and re-evaluating sleeves to verify their integrity. As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent, by letter dated January 25, 2023, a Notice of Probable Violation, Proposed Compliance Order, and Proposed Civil Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that NuStar committed violations of three provisions of 49 C.F.R. Part 195 (Items 1, 2, and 3), proposed ordering Respondent to take certain measures to correct the alleged violations, and proposed a civil penalty of $191,700. Prior to and after receiving the Notice, NuStar has coordinated with and provided records and information to PHMSA, updated its procedures and processes, retrained work crews and continued to excavate, re-evaluate and, where necessary, repair issues identified by the Notice. NuStar responded to the Notice by letter dated February 24, 2023 (Response), requesting a hearing and to meet informally with PHMSA to discuss clarification and modification of the Proposed Compliance Order (PCO) requirements to avoid the need for a hearing. NuStar stated it accepted the allegations and proposed civil penalties associated with Notice Items 1, 2, and 3. PHMSA and Respondent (the Parties) subsequently met to discuss the issues raised in the#

32023005NOPV_Consent Agreement and Order_07252023_(22-261675)_text.pdf, page 4Response. As a result of those discussions and as explained in more detail below, the Parties agreed to clarification and modification of the PCO requirements. Having agreed that settlement of this proceeding will avoid further administrative proceedings or litigation and will serve the public interest by promoting safety and protection of the environment, pursuant to 49 U.S.C. § 60101, et seq. and 49 C.F.R. Part 190, and upon consent and agreement, the Parties hereby agree as follows: I. General Provisions: 1. Respondent acknowledges that as the operator of the pipeline facilities subject to the Notice, Respondent and its referenced 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 Consent Agreement (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 for the Dispute Resolution provisions set forth herein. Respondent agrees to promptly withdraw its request for an administrative hearing regarding the Notice upon receipt of the signed Agreement. 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,#

32023005NOPV_Consent Agreement and Order_07252023_(22-261675)_text.pdf, page 5et 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 Director no later than 60 days after the transfer occurs. 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. Except as set forth herein, this Agreement does not constitute a finding of violation of any other federal law or regulation and may not be used in any civil proceeding of any kind as evidence or proof of any fact, fault, or liability, or as evidence of a violation of any law, rule, regulation, or requirement, except in a proceeding to enforce the provisions of this Agreement or in future PHMSA enforcement actions. II. Findings of Violation: 11. Item 1 - 49 C.F.R. § 195.214(b): The Notice alleged that NuStar’s qualified contract welder did not follow welding procedures when he welded a sleeve on the pipeline at an anomaly dig at Mile Post 10.28 on the Cabot to Franklin line segment in Arkansas. Respondent did not contest the allegation of violation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 195.214(b). 12. Item 2 - 49 C.F.R. § 195.228: The Notice alleged that NuStar’s company inspector did not adequately visually inspect the fillet and longitudinal welds on certain repair sleeves installed during anomaly investigation digs beginning in 2020 as required by NuStar’s welding manual and API 1104. Respondent did not contest the allegation of violation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 195.228. 13. Item 3 - 49 C.F.R. § 195.234(b)(1): The Notice alleged that NuStar’s company inspector, despite indicating that magnetic particle testing was completed on required documentation, did not adequately non-destructively test the fillet and longitudinal welds on#

32023005NOPV_Consent Agreement and Order_07252023_(22-261675)_text.pdf, page 6certain repair sleeves in accordance with NuStar’s written set of procedures. Respondent did not contest the allegation of violation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 195.234(b)(1). 14. Items 1, 2, and 3, will be considered by PHMSA as prior offenses in any future PHMSA enforcement action taken against Respondent for the five (5)-year period following the Effective Date of this Agreement. III. Civil Penalty: 15. Items 1, 2, and 3: The Notice proposed assessing a civil penalty in the amount of $63,900 for Item 1, $63,900 for Item 2, and $63,900 for Item 3. Respondent did not contest the proposed civil penalties for these Items. As such, Respondent shall pay a civil penalty in the amount of $63,900 for Item 1, $63,900 for Item 2, and $63,900 for Item 3. 16. Respondent shall pay a total civil penalty in the amount of $191,700, pursuant to the payment instructions at 49 C.F.R. § 190.227(a), to be paid in full no later than 20 days from the Effective Date of this Agreement. IV. Compliance Order: 17. Items 1, 2, and 3: The Notice proposed certain compliance order actions to address the non-compliance alleged in the Notice. Respondent requested clarification and modification of the Proposed Compliance Order (PCO) requirements to specify the scope of actions required and the standards to be met under the PCO terms. The Parties agreed to certain clarifications and modifications to the PCO to provide clarity regarding the actions necessary to ensure proper implementation. As such, Respondent agrees to undertake the following corrective measures: A. Action Plan. 1. Respondent must identify (a) all the welds produced by the Welder identified on Work Order 40951429 from 2017 to 2022 and (b) all the welds that were evaluated by the Company Inspector identified on Work Order 40951429 from 2017 to 2022 (collectively, the “Subject Welds”). This information must be submitted to the Director within 90 days of the Effective Date of the Consent Agreement. Within 90 days of the Effective Date of the Consent Agreement, Respondent must submit to the Director for review and approval the following: a. How Respondent determined which of the Subject Welds will be excavated and re-evaluated, and how Respondent will prioritize those excavations and re-evaluations; and 2.#

32023005NOPV_Consent Agreement and Order_07252023_(22-261675)_text.pdf, page 73. B. C. b. An approach for verifying that the Subject Welds meet the visual inspection and non-destructive inspection acceptability requirements within Section 9 of API 1104 (20th edition, October 2004, including errata/addendum (July 2007) and errata 2 (2008)) (the “Welding Standards”). Respondent may submit a written request to use a statistical approach (e.g., a 95% confidence level) to determine if certain of the Subject Welds meet the Welding Standards. The PHMSA Central Region Director will review and approve any such request, if made. If approved, Respondent will only be required to demonstrate compliance with the approved statistical approach to satisfy compliance with I.A.2.(b) for the population specified. Monthly Report. Respondent will provide the Director with a schedule by the 20th of every month, which includes a list of the projected locations that are targeted for excavation and re-evaluation during the upcoming month(s). Quarterly Report. Respondent will provide the Director with a quarterly update on the number of Subject Welds that were excavated and evaluated, relevant findings, and the remediation performed. The report may include an update on Respondent’s progress toward developing a statistical approach as referenced in Item I.A.3. above. The first report shall be due on October 1, 2023. Completion Date. All re-evaluations and excavations, as appropriate, must be completed by December 31, 2024. Extensions of Time. To the extent that Respondent is unable to meet any of the specified deadlines, including completion of the required evaluations and any necessary remediations by December 31, 2024, Respondent must submit a written request and explanation for an extension at least 30 days prior to the deadline. The Director will review and approve any reasonable requests for extensions. V. 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 $239,142 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 the determinations made by the Director, or in accordance with decisions of the Associate Administrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil penalty amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223. All work plans, action plans, and associated schedules set forth or referenced in Section IV are automatically incorporated into this Agreement and are enforceable in the same manner. D. E.#

32023005NOPV_Consent Agreement and Order_07252023_(22-261675)_text.pdf, page 8VI. Review and Approval Process: 19. With respect to any submission under Section IV (Compliance Order) of this Agreement that requires the approval of the Director, the Director may: (a) approve, in whole or in part, the submission; (b) approve the submission on specified, reasonable conditions; (c) disapprove, in whole or in part, the submission; or (d) any combination of the foregoing. If the Director approves, approves in part, or approves with conditions, Respondent will take all actions as approved by the Director, subject to Respondent’s right to invoke the dispute resolution procedures with respect to any conditions the Director identifies. If the Director disapproves all or any portion of the submission, the Director will provide Respondent a written notice of the deficiencies. Respondent will correct all deficiencies within the time specified by the Director and resubmit it for approval. VII. Dispute Resolution: 20. The Director and Respondent will informally attempt to resolve any disputes arising under this Agreement, including any decision of the Director under the terms of Sections IV (Compliance Order) and VI (Review and Approval Process). 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 after 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. VIII. Effective Date: 21. 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. IX. Recordkeeping and Information Disclosure: 22. Unless otherwise required in this Agreement, Respondent agrees to maintain records demonstrating compliance with all requirements of this Agreement for a period of at least five (5) years following completion of all work to be performed. For any reports, plans, or other deliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent may assert a claim of business confidentiality or other protections applicable to the release of information by PHMSA, covering part or all of the information required to be submitted to PHMSA pursuant to this Agreement in accordance with 49 C.F.R. Part 7. Respondent must mark the claim of confidentiality in writing on each page, and include a statement specifying the grounds for each claim of confidentially. PHMSA determines release of any information#

32023005NOPV_Consent Agreement and Order_07252023_(22-261675)_text.pdf, page 9submitted pursuant to this Agreement in accordance with 49 C.F.R. Part 7, the Freedom of Information Act, 5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations and Executive Orders. X. Modification: 23. 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. XI. Termination: 24. This Agreement will remain in effect until the Compliance Order in Section IV is satisfied, as determined by the Director. The Agreement shall not terminate until the Director confirms, in writing, that the Agreement is terminated in accordance with this paragraph. Nothing in this Agreement prevents Respondent from completing any of the obligations earlier than the deadlines provided for in this Agreement. XII. Ratification: 25. 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. 26. The Parties hereby agree to all findings, conditions, and terms of this Agreement. [Signature Lines on Following Page]#

32023005NOPV_Consent Agreement and Order_07252023_(22-261675)_text.pdf, page 10For NuStar Pipeline Operating Partnership, L.P.: By NuStar Pipeline Company, LLC; its General Partner ___________________________________ Gerald R. “Gary” Koegeboehn, Vice President ________________________ Date For PHMSA: ________________________________________ Director, Central Region, Office of Pipeline Safety ________________________ Date#

32023005NOPV_PHC Hearing Scheduled_03132023_(22-261675)_text.pdf, page 1Official PDFMarch 13, 2023 VIA ELECTRONIC MAIL TO: gary.koegeboehn@nustarenergy.com and gregory.ochs@dot.gov Mr. Gary Koegeboehn Vice President – Pipeline Operations NuStar Pipeline Operating Partnership, L.P. 19003 IH-10 West San Antonio, TX 78257 Mr. Gregory Ochs Director, Central Region Pipeline and Hazardous Materials Safety Administration 901 Locust Street, Suite 480 Kansas City, MO 64106-2641 Re: Notice of Hearing, NuStar Pipeline Operating Partnership, L.P. CPF No. 3-2023-005-NOPV Dear Mr. Koegeboehn 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 August 2nd, 2023, beginning at 8:30 a.m. Central Time. The hearing will be held at the PHMSA Central Region office, 901 Locust Street, Suite 480, Kansas City, Missouri 64106. Upon arrival at the building, attendees will be required to present photo identification to security personnel. A contact phone number for the day of the hearing is (816) 329-3800. At least 10 calendar days prior to the hearing (or by July 24th, 2023), 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.#

32023005NOPV_PHC Hearing Scheduled_03132023_(22-261675)_text.pdf, page 2Sincerely, Larry White Presiding Official cc: Mr. Brad Barron, President and Chief Executive Officer, NuStar Pipeline Operating Partnership, L.P., brad.barron@nustarenergy.com Ms. Catherine Little, Counsel, Bracewell LLP, catherine.little@bracewell.com Mr. Joseph Hainline, Counsel, Central Region, Office of Pipeline Safety, PHMSA, joseph.hainline@dot.gov#

32023005NOPV_Closure Letter_12172024_(22-261675)_text.pdf, page 1Official PDFVIA ELECTRONIC MAIL TO: Brad.Barron@nustarenergy.com; gary.koegeboehn@nustarenergy.com December 17, 2024 Mr. Karl Fails President and Chief Executive Officer NuStar Pipeline Operating Partnership L.P. 19003 IH-10 West San Antonio, TX 78257 RE: CPF 3-2023-005-NOPV Dear Mr. Fails: On July 25, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a Consent Order incorporating the terms of the Consent Agreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and NuStar Pipeline Operating Partnership, L.P.(NuStar) in the above-referenced case. This Order directed NuStar to comply with the terms of the Consent Agreement. Based on our review of the documentation provided by your staff and confirmation of payment of the civil penalty, it has been determined that NuStar has complied with the terms. 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, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration cc: Gary Koegeboehn, VP of Pipeline Operations, gary.koegeboehn@nustarenergy.com#