MAGELLAN PIPELINE COMPANY, LP — Notice of Probable Violation

party submissionOfficial PDF32024052NOPV_Operator Response to Notice and Request for Hearing_08222024_(24-305436).pdf#

case documentOfficial PDF32024052NOPV_PCP PCO_07032024_(24-305436).pdf#

case documentOfficial PDF32024052NOPV_PCP PCO_07032024_(24-305436)_text.pdf#

32024052NOPV_Consent Agreement and Order_03282025_(24-305436)_text.pdf, page 1Official PDFMarch 28, 2025 VIA ELECTRONIC MAIL TO: pierce.norton@oneok.com Pierce H. Norton II President and Chief Executive Officer ONEOK, Inc. 100 West Fifth Street Tulsa, Oklahoma 74103 CPF No. 3-2024-052-NOPV Dear Mr. Norton: Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Magellan Pipeline Company, LP, which was executed on January 13, 2025. 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, for Alan K. Mayberry Associate Administrator for Pipeline Safety Enclosure: Consent Order and Consent Agreement cc: Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA Teri Anderson, Sr. Manager, DOT Compliance Services, ONEOK Nicole Bickford, DOT Compliance Assistant, ONEOK Danny Scroggins, Counsel, ONEOK, danny.scroggins@oneok.com CONFIRMATION OF RECEIPT REQUESTED#

32024052NOPV_Consent Agreement and Order_03282025_(24-305436)_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. 3-2024-052-NOPV ) Respondent. ) ) CONSENT ORDER By letter dated July 3, 2024, 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 Magellan Pipeline Company, LP, (Magellan or Respondent).1 In response to the Notice, Respondent contested the proposed civil penalty and requested a hearing (Response). Magellan also requested to meet informally with PHMSA to discuss the matters raised in its Response. Respondent and PHMSA (the Parties) subsequently met on August 14, 2024. As a result of those discussions, as explained in more detail below, the Parties have agreed to a Consent Agreement by which PHMSA makes a finding of violation for the Item alleged in the Notice. Respondent will pay a reduced civil penalty in the amount of $50,200 and requires Respondent to complete specified compliance actions. Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this Consent Order. Magellan 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. ___________________ for Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety 1 On September 25, 2023, Magellan Midstream Partners and Magellan Pipeline Company, LP, was acquired by ONEOK, Inc.#

32024052NOPV_Consent Agreement and Order_03282025_(24-305436)_text.pdf, page 3CPF No. 3-2024-052-NOPV Page 1 U.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. 3-2024-052-NOPV ) ) Respondent. ) CONSENT AGREEMENT From March 6 to March 8, 2023, a representative ofthe Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 ofTitle 49, United States Code (U.S.C.), conducted an on-site investigation ofMagellan Pipeline Company, LP's (Magellan or Respondent)1 #3-8" Paola to Kansas City pipeline segment in Tulsa, Oklahoma, related to the Wednesday, March 29, 2022, release ofdiesel product near Mile Post (MP) 187 in Johnson County Kansas, at 6920 Pflumm Road, Shawnee, Kansas. As a result of the investigation, the Director, Central Region, OPS (Director), issued to Respondent, by letter dated July 3, 2024, 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 committed one violation of 49 C.F.R. Part 195 (Item I), proposed ordering Respondent to take certain measures to correct the alleged violation, and proposed a civil penalty of $297,900. Following an extension oftime to file a response, ONEOK, Inc. (ONEOK) responded to the Notice on behalfof its subsidiary, Magellan, by letter dated August 22, 2024 (Response). Respondent contested the proposed civil penalty and requested a hearing. Magellan also requested to meet informally with PHMSA to discuss the matters raised in its Response. PHMSA and Respondent (the Parties) subsequently met to discuss the issues raised in the Response. As a result ofthose discussions and as explained in more detail below, the Parties have agreed to a Consent Agreement by which PHMSA makes a finding ofviolation for the Item alleged in the Notice, Respondent will pay a reduced civil penalty in the amount of$50,200, and Respondent will complete certain compliance actions. 1 On September 25, 2023, Magellan Midstream Partners and Magellan Pipeline Company, LP, was acquired by ONEOK, Inc.#

32024052NOPV_Consent Agreement and Order_03282025_(24-305436)_text.pdf, page 4Having 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 withdraw its request for an administrative hearing regarding the Notice. 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#

32024052NOPV_Consent Agreement and Order_03282025_(24-305436)_text.pdf, page 5bring 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. § 195.452(e)(l)(i): The Notice alleged Magellan failed to base its assessment schedule on all the risk factors that affected the risk conditions of its pipeline. Specifically, the Notice alleged that Respondent failed to consider (1) the actual corrosion growth rate, and (2) the defect type and size that the assessment method it used could detect. Respondent does not contest the allegation of violation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 195.452(e)(l)(i). 12. Item 1 will be considered by PHMSA as a prior offense in any future PHMSA enforcement action taken against Respondent. III. Civil Penalty: 13. Item 1: The Notice proposed assessing a civil penalty in the amount of $297,900 for Item 1. Respondent requested a reduction of the proposed civil penalty. PHMSA agrees that a reduction to the proposed civil penalty is appropriate. During informal discussion with the operator, PHMSA received information demonstrating that Respondent had a reasonable justification for its non-compliance. Therefore, a good faith credit is warranted. Additional#

32024052NOPV_Consent Agreement and Order_03282025_(24-305436)_text.pdf, page 6information showed that the violation was not a causal factor in the reportable incident. Therefore, an adjustment to the gravity criterion is warranted, to "The violation occurred within an HCA or 'could affect' HCA, or within an area required to be covered by a gas distribution system integrity management program; or the violation is against 49 CFR 193."2 Respondent agrees to pay a reduced civil penalty in the amount of $50,200 for the violation in Item 1. 14. Respondent will pay a total reduced civil penalty in the amount of $50,200, 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: 15. Item 1: The Notice proposed certain compliance order actions to address the non- compliance alleged in the Notice. Respondent did not contest the Proposed Compliance Order. However, during the informal discussion, the Parties agreed to a modification of the corrective measures. As modified, Respondent agrees to perform the following: Magellan must revise its integrity management program to (I) enhance its considerations for the risk of accelerated corrosion growth of known individual defects and, within 30 days ofreceipt of the Consent Order, provide the changes to the program to the Director, PHMSA Central Region and (2) complete the ongoing integrity assessment and required repairs associated with the recent inline inspection method conducted on May 1, 2024 that was established based on the defect type and size that lead to the failure of its #3-8" Paola- Kansas City Pipeline on March 29, 2022, within 1 year ofreceipt of the Consent Order. Magellan must provide quarterly updates of its progress towards the corrective measures until their completion. The first quarterly update will be due 90 days after receipt of the Consent Order and then every 90 days thereafter. V. Enforcement: 16. 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 $266,015 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 and associated schedules set forth or referenced in Section IV are automatically incorporated into this Agreement and are enforceable in the same manner. VI. Review and Approval Process: 17. 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 2 Violation Report, CPF No. 3-2024-052-NOPV, Part E6 - Gravity (July 3, 2024).#

32024052NOPV_Consent Agreement and Order_03282025_(24-305436)_text.pdf, page 7in 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: 18. 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 Section IV (Compliance Order). 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. Such request must be made in writing and provided to the Director, counsel for the Central Region, and to the Associate Administrator, 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. VIII. Effective Date: 19. The term "Effective Date," as used herein, is the date on which the Consent Order is issued by the Associate Administrator incorporating the terms of this Agreement. IX. Recordkeeping and Information Disclosure: 20. 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, unless a longer period of time is required pursuant to 49 C.F.R. parts 190-199. 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 submitted pursuant to this Agreement in accordance with 49 C.F.R. Part 7, the Freedom oflnformation Act, 5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations and Executive Orders.#

32024052NOPV_Consent Agreement and Order_03282025_(24-305436)_text.pdf, page 8X. 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. XI. Termination: 22. This Agreement will remain in effect until the Compliance Order in Section IV is satisfied, as determined by the Director, and the civil penalty is paid in full. 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. XV. Ratification: 23. 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. 24. The Parties hereby agree to all findings, conditions, and terms of this Agreement. [Signature Lines on Following Page]#

32024052NOPV_Consent Agreement and Order_03282025_(24-305436)_text.pdf, page 9For Magellan Pipeline Company, LP: ___________________________________ ________________________ Date For PHMSA: ________________________________________ Director, Central Region, Office of Pipeline Safety#

32024052NOPV_Closure Letter_12102025_(24-305436)_text.pdf, page 1Official PDFU.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 901 Locust Street, Suite 480 Kansas City, MO 64106 VIA ELECTRONIC MAIL TO: randy.lentz@oneok.com; bryan.white@oneok.com; laurie.england@oneok.com December 10, 2025 Randy Lentz, EVP, Chief Operating Officer ONEOK, Inc. 100 West Fifth Street Tulsa, Oklahoma 74103 RE: CPF 3-2024-052-NOPV Dear Mr. Lentz: On March 28, 2025, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a Consent Order incorporating the terms of the Consent Agreement between PHMSA and Magellan Pipeline Company, LP’s (Magellan)1 in the above-referenced case. The Consent Agreement included a Compliance Order and a Civil Penalty assessment. Based on our review of the documentation provided and confirmation of payment of the civil penalty, it has been determined that Magellan has complied with the terms of the 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, David Barrett Acting Director, Central Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration cc: Bryan White, Director Asset Integrity & Engineering, bryan.white@oneok.com Laurie England, Regulatory Compliance Specialist, laurie.england@oneok.com 1 On September 25, 2023, Magellan Midstream Partners and Magellan Pipeline Company, LP, was acquired by ONEOK, Inc.#

32024052NOPV_PHC Hearing Rescheduled_02212025_(24-305436)_text.pdf, page 1Official PDFDate: February 21, 2025 From: Joseph St. Peter To: File Re: Continuance of Informal Hearing in CPF No. CPF 3-2024-052-NOPV (Magellan Pipeline Company, LP (Magellan)) By electronic mail dated February 20, 2025, Ryan McClure, counsel for Central Region, submitted a joint status update indicating that, as conveyed previously, the parties have both executed a consent agreement resolving the allegations in the above-listed case but still await PHMSA’s issuance of the consent order adopting that agreement. Therefore, the parties requested a continuance of the scheduled March 6, 2025, informal hearing date, or order to allow for issuance of the consent order and agreement. The request for a continuance of the informal hearing is granted. The informal hearing in this case will be held on June 17, 2025, at 8:30 a.m. Central time in Kansas City, Missouri. Pre-hearing submissions under 49 CFR § 190.211(d) are due no later than June 9, 2025.#

32024052NOPV_PHC Hearing Rescheduled_01232025_(24-305436)_text.pdf, page 1Official PDFDate: January 23, 2025 From: Joseph St. Peter To: File Re: Continuance of Informal Hearing in CPF No. CPF 3-2024-052-NOPV (Magellan Pipeline Company, LP (Magellan)) By electronic mails dated January 16, 17, and 22, 2025, respectively, Danny Scroggins, Counsel for Magellan, and Ryan McClure and Mia Petrucci, counsel for Central Region, submitted status updates indicating that the parties have both executed a consent agreement resolving the allegations in the above-listed case. The parties also requested a continuance of the scheduled January 30, 2025, informal hearing date, or order to allow for issuance of the consent agreement. I grant the request for a continuance of the informal hearing. The informal hearing in this case will be held on March 6, 2025, at 8:30 a.m. Central time. Pre-hearing submissions under 49 CFR § 190.211(d) are due no later than February 24, 2025.#

32024052NOPV_PHC Hearing Scheduled_09302024_(24-305436)_text.pdf, page 1Official PDFSeptember 30, 2024 VIA ELECTRONIC MAIL TO: danny.scroggins@oneok.com and gregory.ochs@dot.gov Mr. Danny Scroggins Legal Counsel ONEOK, Inc. 100 West Fifth Street Tulsa, OK 74103 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, ONEOK, Inc. CPF No. 3-2024-052-NOPV Dear Mr. Scroggins 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 January 30, 2025, 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 January 21, 2025), 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.#

32024052NOPV_PHC Hearing Scheduled_09302024_(24-305436)_text.pdf, page 2Sincerely, Larry White Presiding Official cc: Mr. Pierce H. Norton II, President and CEO, ONEOK, Inc., pierce.norton@oneok.com Mr. Ryan McClure, Counsel, Central Region, Office of Pipeline Safety, PHMSA, ryan.mcclure@dot.gov Ms. Mia Petrucci, Law Clerk, Central Region, Office of Pipeline Safety, PHMSA, mia.petrucci@dot.gov#