TRES PALACIOS GAS STORAGE LLC — Warning Letter

420121017W_Warning Letter_10092012_text.pdf, page 1Official PDFWARNING LETTER CERTIFIED MAIL - RETURN RECEIPT REQUESTED October 9, 2012 Mr. Barry Cigich VP Operations & Engineering Tres Palacios Gas Storage, LLC 2 Brush Creek Blvd. Kansas City, MO 64112 CPF 4-2012-1017W Dear Mr. Cigich: On July 10 and 11, 2012, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected the effectiveness of Tres Palacios Gas Storage, LLC’s (Tres Palacios) Public Awareness Program (PAP) at your facility in Markham, TX. As a result of the inspection, it appears that Tres Palacios has committed a probable violation of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The item inspected and the probable violation is: 1. §192.616 Public Awareness (a) Except for an operator of a master meter or petroleum gas system covered under paragraph (j) of this section, each pipeline operator must develop and implement a written continuing public education program that follows the guidance provided in the American Petroleum Institute’s (API) Recommended Practice (RP) 1162.#

420121017W_Warning Letter_10092012_text.pdf, page 2During the inspection, Tres Palacios was unable to provide the plan associated with records for the operating years of 2010 and 2011. Tres Palacios was unable to locate a copy of the previous plan, yet records demonstrated compliance. Tres Palacios must make the plan available to all parties with administrative duties to prevent this from occurring again. Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $100,000 for each violation for each day the violation persists up to a maximum of $1,000,000 for any related series of violations. 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 correct the items identified in this letter. Failure to do so will result in Tres Palacios 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 4-2012-1017W. 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, R. M. Seeley Director, Southwest Region Pipeline and Hazardous Materials Safety Administration 2#