NATURAL GAS PIPELINE CO OF AMERICA (KMI) — Notice of Probable Violation

party submissionOfficial PDF420161011_Operator Response to Notice and Request for Case File_12072016.pdf#

420161011_NOPV PCP PCO_10282016_text.pdf, page 1Official PDFNOTICE OF PROBABLE VIOLATION PROPOSED CIVIL PENALTY and PROPOSED COMPLIANCE ORDER CERTIFIED MAIL - RETURN RECEIPT REQUESTED October 28, 2016 Mr. Gary Buchler Vice President of Gas Operations Natural Gas Pipeline Company of America, LLC 1001 Louisiana Street Houston, TX 77002 CPF 4-2016-1011 Dear Mr. Buchler: On multiple occasions between March 9, 2015 and September 18, 2015, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United States Code were onsite and inspected Natural Gas Pipeline Company of America’s (NGPL) pipeline assets in Texas, Oklahoma, Arkansas and Illinois. As a result of the inspection, it appears that you have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violations are:#

420161011_NOPV PCP PCO_10282016_text.pdf, page 21. 2. §192.605 Procedural manual for operations, maintenance and emergencies. (a) General. Each operator shall prepare and follow for each pipeline, a manual of written procedures for conducting operating and maintenance activities and for emergency response. For transmission lines, the manual must also include procedures for handling abnormal operations. This manual must be reviewed and updated by the operator at intervals not exceeding 15 months, but at least once each calendar year. This manual must be prepared before operations of a pipeline system commence. Appropriate parts of the manual must be kept at locations where operations and maintenance activities are conducted. § 192.615 Emergency plans. (b) Each operator shall: (2) Train the appropriate operating personnel to assure that they are knowledgeable of the emergency procedures and verify that the training is effective. NGPL failed to document that training of personnel in the Emergency Procedures is effective. Kinder Morgan’s O&M Procedure, O&M 1900, Emergency Response, 4. Training, states that “Area/facility management will ensure that the ERP is reviewed annually with each employee to verify emergency training is effective per the Company’s Training Matrix.” “Document the individual employee review and training effectiveness verification. Recommended verification methods for training and drills are to conduct discussions of employees’ emergency response scenarios specific to each area/facility or to administer a written evaluation containing questions about emergency response procedures.” During the inspection, NGPL provided drills that were conducted by NGPL on November 12, 2013, and April 15, 2014, as documentation of the effectiveness training of the emergency procedures. Documentation of drill activities does not include verification of personnel’s knowledge of emergency procedures or verification of training effectiveness, as per Kinder Morgan procedure O&M 1900 Emergency Response. §192.605 Procedural manual for operations, maintenance and emergencies. (a) See above. § 192.615 Emergency plans. (b) Each operator shall: (3) Review employee activities to determine whether the procedures were effectively followed in each emergency.2#

420161011_NOPV PCP PCO_10282016_text.pdf, page 3NGPL failed to document the review of employee activities to determine whether procedures were effectively followed by employees in response to an emergency. Kinder Morgan’s O&M Procedures, O&M 159, Emergency Reporting and Investigation, states: “Include in the investigation, at a minimum: Evaluation of the response of the employees to determine the effectiveness of the procedures and corrective actions taken when deficiencies are found.” During the inspection, records for incident DOT 20150096-16858 reported on June 18, 2015, near Marshall, Texas, were reviewed. Kinder Morgan’s Form OM100-45 was completed by NGPL personnel following the incident to document the incident and summarize the event. The form failed to document a review of employee activities for the purpose of determining whether the Emergency Plan procedures were effectively followed. 3. §192.603 General provisions. (b) Each operator shall keep records necessary to administer the procedures established under § 192.605. §192.605 Procedural manual for operations, maintenance, and emergencies. (b) Maintenance and normal operations. The manual required by paragraph (a) of this section must include procedures for the following, if applicable, to provide safety during maintenance and operations. (1) Operating, maintaining, and repairing the pipeline in accordance with each of the requirements of this subpart and subpart M of this part. NGPL’s records do not document that valves necessary during an emergency were partially operated during NGPL’s inspections of emergency valves as required under §192.745. NGPL inspection forms included check boxes for their inspectors to indicate whether valves were lubricated and operated. Kinder Morgan’s O&M Procedure, O&M 301, Inspecting and Servicing Emergency Valves, states “Operate valves fully whenever possible; otherwise, partial operation is acceptable.” During the inspection it was noted from the valve inspection records that there were 21 emergency valves that were not partially operated in 2013 and 12 emergency valves that were not partially operated in 2012. There were 2 locations that did not indicate any operation of the valves in both 2012 and 2013. 4. §192.603 General provisions. (b) Each operator shall keep records necessary to administer the procedures established under § 192.605. §192.605 Procedural manual for operations, maintenance, and emergencies. 3#

420161011_NOPV PCP PCO_10282016_text.pdf, page 4(b) Maintenance and normal operations. The manual required by paragraph (a) of this section must include procedures for the following, if applicable, to provide safety during maintenance and operations. (5) Starting up and shutting down any part of the pipeline in a manner designed to assure operations within the MAOP limits prescribed by this part, plus the build-up allowed for operation of pressure limiting and control devices. NGPL failed to document set points of pressure limiting and control devices designed to assure operating pressures are within the MAOP limits prescribed by Part 192, plus the buildup allowed for operation of pressure limiting and control devices. At NGPL Station 300, an inspection of overpressure protection devices was conducted on October 1, 2014, but the MAXIMO work order records did not include documentation of device set points. 5. § 192.605 Procedural manual for operations, maintenance, and emergencies. (a) General. Each operator shall prepare and follow for each pipeline, a manual of written procedures for conducting operations and maintenance activities and for emergency response. For transmission lines, the manual must also include procedures for handling abnormal operations. This manual must be reviewed and updated by the operator at intervals not exceeding 15 months, but at least once each calendar year. This manual must be prepared before operations of a pipeline system commence. Appropriate parts of the manual must be kept at locations where operations and maintenance activities are conducted. (b) Maintenance and normal operations. The manual required by paragraph (a) of this section must include procedures for the following, if applicable, to provide safety during maintenance and operations. (1) Operating, maintaining, and repairing the pipeline in accordance with each of the requirements of this subpart and subpart M of this part. NGPL personnel failed to follow their manual for operations and maintenance activities. Kinder Morgan’s O&M Procedure O&M 301 Inspecting and Servicing Emergency Valves states that they are to “Inspect and service pipeline valves at least once each calendar year, at intervals not to exceed 15 months.” Section 5 Documentation, states “Keep records indicating the servicing dates, and valve and components condition on O&M Form OM300-01 – Automatic Valve Service Report, O&M Form OM300-02-Appurtenance Inspection Service Report, O&M Form 300-03-Valve Inspection Report, or capture the same data in the I&M Program database as your documentation.” A review of the MAXIMO work orders for the Kinder Morgan’s Valve –Natural Gas Service did not include valve and components conditions on the form. It was identified that there were 553 valves records that did not have the valve and components condition noted on the form, as required by Kinder Morgan’s procedures. 4#

420161011_NOPV PCP PCO_10282016_text.pdf, page 5The evidence demonstrates that the operator violated § 192.605(a) by failing to perform the valve inspections as described in their procedures. In the event that such inspections were, in fact, performed, the evidence demonstrates the operator violated §192.709(c) by failing to maintain a record of each inspection and test required by subpart L and M. Proposed Civil Penalty Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000 per violation per day the violation persists up to a maximum of $2,000,000 for a related series of violations. For violations occurring prior to January 4, 2012, the maximum penalty may not exceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a related series of violations. The Compliance Officer has reviewed the circumstances and supporting documentation involved in the above probable violation(s) and has recommended that you be preliminarily assessed a civil penalty of $131,000 as follows: Item number PENALTY 3 $27,900 5 $103,100 Warning Items With respect to items 1 and 2, 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 promptly correct these items. Failure to do so may result in additional enforcement action. Proposed Compliance Order With respect to items 4 and 5 pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to Natural Gas Pipeline Company of America. Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice. Response to this Notice Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. All material submit in response to this enforcement action may be 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). If you do not respond within 30 days of receipt of this Notice, this 5#

420161011_NOPV PCP PCO_10282016_text.pdf, page 6constitutes a waiver of your right to contest the allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue a Final Order. In your correspondence on this matter, please refer to CPF 4-2016-1011 and for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, R. M. Seeley Director, Southwest Region Pipeline and Hazardous Materials Safety Administration Enclosure: Response Options for Pipeline Operators in Compliance Proceedings 6#

420161011_NOPV PCP PCO_10282016_text.pdf, page 7PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Natural Gas Pipeline Company of America (NGPL) a Compliance Order incorporating the following remedial requirements to ensure the compliance of Natural Gas Pipeline Company of America with the pipeline safety regulations: 1. In regard to Item Number 4 of the Notice pertaining to the failure to document the set points of pressure-limiting and control devices during inspections of overpressure protection devices to assure operating pressures are maintained within the MAOP limits: a. NGPL must provide training to field personnel to ensure inspections are properly and completely documented in accordance with procedures and the usage of the work management system (MAXIMO). b. Provide documentation of the training personnel received. Also provide the names and dates of when the training was completed for the individuals who would be performing and documenting the inspections of pressure-limiting and control device set points. 2. In regard to Item Number 5 of the Notice pertaining to the failure to follow the manual for operations and maintenance, specifically inspecting emergency valves. a. NGPL must provide training to field personnel to ensure emergency valve inspections are properly conducted and documented, as per Kinder Morgan’s O&M Procedure, O&M 301Inspection and Servicing Emergency Valves. b. Provide documentation of the training personnel received. Also provide the names and dates of when the training was completed for the individuals who would be performing and documenting the inspection of emergency valves, and more specifically to document valve and component’s conditions and whether the valve was partially or fully operated successfully. 3. NGPL shall complete Items 1 and 2 above with 60 days after receipt of the Final 4. Order. It is requested (not mandated) that Natural Gas Pipeline Company of America maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to R. M. Seeley, Director, Southwest Region, Pipeline and Hazardous Materials Safety Administration. It is requested that these costs be reported in two categories: 1) total cost associated with preparation/revision of plans, procedures, studies and analyses, and 2) total cost associated with replacements, additions and other changes to pipeline infrastructure. 7#

420161011_Closure Letter_04242019_text.pdf, page 1Official PDFCERTIFIED MAIL - RETURN RECEIPT REQUESTED April 24, 2019 Steven J. Kean President and Chief Executive Officer Kinder Morgan, Inc. 1001 Louisiana Street Houston, Texas 77002 CPF 4-2016-1011 Dear Mr. Kean: On October 24, 2017, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to Natural Gas Pipeline Company of America, LLC a Final Order in the above-referenced case. This Order included a Compliance Order and Civil Penalty assessment. Based on our review of the documentation you provided and confirmation of payment of the civil penalty on December 14, 2016, it has been determined that you have complied with the terms of this 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, Mary L. McDaniel, P.E. Director, Southwest Region Pipeline and Hazardous Materials Safety Administration#

420161011_Final Order_10242017_text.pdf, page 1Official PDFOctober 24, 2017 Mr. Steven J. Kean President and Chief Executive Officer Kinder Morgan, Inc. 1001 Louisiana Street Houston, TX 77002 Re: CPF No. 4-2016-1011 Dear Mr. Kean: Enclosed please find the Final Order issued in the above-referenced case. It makes findings of violation, assesses a civil penalty of $131,000, and specifies actions that need to be taken by Natural Gas Pipeline Company of America, LLC, which is jointly owned by Kinder Morgan, Inc. and Brookfield Infrastructure Partners, LP, to comply with the pipeline safety regulations. This is to acknowledge receipt of payment of the full penalty amount, by wire transfer, dated December 14, 2016. When the terms of the compliance order have been completed, as determined by the Director, Southwest Region, this enforcement action will be closed. Service of the Final Order by certified mail is effective as 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 cc: Director, Southwest Region, Office of Pipeline Safety, PHMSA Mr. Tom Martin, President, Natural Gas Pipeline Group, Kinder Morgan, Inc. Mr. Kenneth W. Grubb, Chief Operating Officer, Natural Gas Pipeline Group, Kinder Morgan, Inc. CERTIFIED MAIL - RETURN RECEIPT REQUESTED#

420161011_Final Order_10242017_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 ) Natural Gas Pipeline Company of ) CPF No. 4-2016-1011 America, LLC, ) ) ) ) Respondent. ) ____________________________________) FINAL ORDER On multiple occasions between March 9 and September 18, 2015, pursuant to 49 U.S.C. § 60117, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and records of Natural Gas Pipeline Company of America, LLC (NGPL or Respondent), in Texas, Oklahoma, Arkansas, and Illinois. NGPL’s East System transports natural gas and extends from south Texas to northern Illinois.1 The system consists of approximately 4,312 miles with 24 compressor stations, 4 storage fields, and 12 navigable water crossings. NGPL is jointly owned by Kinder Morgan, Inc. (Kinder Morgan), and Brookfield Infrastructure Partners LP, and is operated by Kinder Morgan, Inc.2 As a result of the inspection, the Director, Southwest Region, OPS (Director), issued to Respondent, by letter dated October 28, 2016, a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Notice), which also included a warning pursuant to 49 C.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that NGPL had committed three violations of 49 C.F.R. Part 192 and proposed assessing a civil penalty of $131,000 for the alleged violations. The Notice also proposed ordering Respondent to take certain measures to correct two of the alleged violations. The warning items required no further action, but warned the operator to correct the probable violations or face future potential enforcement action. NGPL responded to the Notice by letter dated December 7, 2016 (Response). The company did not contest the allegations of violation and paid the proposed civil penalty of $131,000 via wire 1 Pipeline Safety Violation Report (Violation Report), (October 27, 2016) (on file with PHMSA), at 1. 2 NGPL website, available at https://www.kindermorgan.com/pages/business/gas pipelines/central/NGPL/default.aspx (last accessed August 31, 2017).#

420161011_Final Order_10242017_text.pdf, page 3CPF No. 4-2016-1011 Page 2 transfer and agreed to complete the proposed compliance actions.3 In accordance with 49 C.F.R. § 190.208(a)(1), such payment authorizes the Associate Administrator to make findings of violation and to issue this final order. Respondent did not request a hearing and therefore has waived its right to one. FINDINGS OF VIOLATION In its Response, NGPL did not contest the allegations in the Notice that it violated 49 C.F.R. Part 192, as follows: Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 192.603(b), which states: § 192.603 General provisions. (a) . . . (b) Each operator shall keep records necessary to administer the procedures established under § 192.605. The Notice alleged that Respondent violated 49 C.F.R. § 192.603(b) by failing to keep records necessary to administer the procedures established under § 192.605. Section 192.605(b)(1) requires that an operator’s written manual include applicable procedures for “[o]perating, maintaining, and repairing the pipeline in accordance with each of the requirements of [subpart L] and subpart M of [Part 192].” Specifically, the Notice alleged that NGPL failed to document that valves necessary during an emergency were partially operated during NGPL’s inspections of emergency valves.4 NGPL inspection forms include check boxes for inspectors to indicate whether valves were lubricated and operated. The Notice further alleged that Kinder Morgan’s Operations and Maintenance (O&M) Procedure, O&M 301, Inspecting and Servicing Emergency Valves, directed personnel to “operate valves fully whenever possible; otherwise, partial operation is acceptable.” In reviewing the valve inspection records, the PHMSA inspector noted there were 21 emergency valves that were not partially operated in 2013 and 12 emergency valves that were not partially operated in 2012. Additionally, there were two locations that did not indicate any operation of the valves in both 2012 and 2013. Respondent did not contest this allegation of violation. Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 192.603(b) by failing to keep records necessary to administer the procedures established under § 192.605. Item 4: The Notice alleged that Respondent violated 49 C.F.R. § 192.603(b), which states: § 192.603 General provisions. (a) . . . (b) Each operator shall keep records necessary to administer the procedures established under § 192.605. 3 NGPL requested Item 2 be withdrawn from the Final Order. “An adjudication . . . to determine whether a violation occurred is not conducted for warnings.” 49 C.F.R. § 190.205. Therefore, Item 2 is a Warning Item that requires no further action. 4 Operators are required to inspect emergency valves in accordance with 49 C.F.R. § 192.745.#

420161011_Final Order_10242017_text.pdf, page 4CPF No. 4-2016-1011 Page 3 The Notice alleged that Respondent violated 49 C.F.R. § 192.603(b) by failing to keep records necessary to administer the procedures established under § 192.605. Section 192.605(b)(5) requires that an operator’s written manual include applicable procedures for “[s]tarting up and shutting down any part of the pipeline in a manner designed to assure operations within the [Maximum Allowable Operating Pressure (MAOP)] limits prescribed by [Part 192, subpart L], plus the build-up allowed for operation of pressure-limiting and control devices.” Specifically, the Notice alleged that NGPL failed to document set points of pressure-limiting and control devices designed to assure operating pressures were within the MAOP limits prescribed in Part 192, plus the build-up allowed for operation of pressure-limiting and control devices. An inspection of overpressure protection devices was conducted on October 1, 2014, at NGPL Station 300. However, NGPL’s work management system (MAXIMO) work order records did not include documentation of device set points. Respondent did not contest this allegation of violation. Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 192.603(b) by failing to keep records necessary to administer the procedures established under § 192.605. Item 5: The Notice alleged that Respondent violated 49 C.F.R. § 192.605(a), which states: § 192.605 Procedural manual for operations, maintenance, and emergencies. (a) General. Each operator shall prepare and follow for each pipeline, a manual of written procedures for conducting operations and maintenance activities and for emergency response. For transmission lines, the manual must also include procedures for handling abnormal operations. This manual must be reviewed and updated by the operator at intervals not exceeding 15 months, but at least once each calendar year. This manual must be prepared before operations of a pipeline system commence. Appropriate parts of the manual must be kept at locations where operations and maintenance activities are conducted. The Notice alleged that Respondent violated 49 C.F.R. § 192.605(a) by failing to prepare and follow for each pipeline, a manual of written procedures for conducting operations and maintenance activities and for emergency response. Specifically, the Notice alleged that NGPL failed to perform the valve inspections in accordance with its own procedures. Kinder Morgan’s O&M Procedure, O&M 301, Inspecting and Servicing Emergency Valves, states that personnel are to “inspect and service pipeline valves at least once each calendar year, at intervals not to exceed 15 months.” Section 5, Documentation, of the same procedure directs personnel to “keep records indicating the servicing dates, and valve and components condition on O&M Form OM300-01 – Automatic Valve Service Report, O&M Form OM300-02 – Appurtenance Inspection Service Report, O&M Form 300-03 – Valve Inspection Report, or capture the same data in the I&M Program database as your documentation.” A review of the MAXIMO work orders for NGPL’s Valve-Natural Gas Service did not show valve and components conditions on the form. The PHMSA inspector identified 553 valves records that did not have the valve and components condition noted on the form, as required by Kinder Morgan’s own procedures.#

420161011_Final Order_10242017_text.pdf, page 5CPF No. 4-2016-1011 Page 4 Respondent did not contest this allegation of violation. Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 192.605(a) by failing to prepare and follow for each pipeline, a manual of written procedures for conducting operations and maintenance activities and for emergency response. These findings of violation will be considered prior offenses in any subsequent enforcement action taken against Respondent. ASSESSMENT OF PENALTY Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed $200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any related series of violations.5 In determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature, circumstances, and gravity of the violation, including adverse impact on the environment; the degree of Respondent’s culpability; the history of Respondent’s prior offenses; and any effect that the penalty may have on its ability to continue doing business; and the good faith of Respondent in attempting to comply with the pipeline safety regulations. In addition, I may consider the economic benefit gained from the violation without any reduction because of subsequent damages, and such other matters as justice may require. The Notice proposed a total civil penalty of $131,000 for the violations cited above. Item 3: The Notice proposed a civil penalty of $27,900 for Respondent’s violation of 49 C.F.R. § 192.603(b), for failing to keep records necessary to administer the procedures established under § 192.605. NGPL neither contested the allegation nor presented any evidence or argument justifying elimination or reduction of the proposed penalty. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $27,900 for violation of 49 C.F.R. § 192.603(b). Payment for this Item was received by wire transfer on December 14, 2016. Item 5: The Notice proposed a civil penalty of $103,100 for Respondent’s violation of 49 C.F.R. § 192.605(a), for failing to prepare and follow for each pipeline, a manual of written procedures for conducting operations and maintenance activities and for emergency response. NGPL neither contested the allegation nor presented any evidence or argument justifying elimination or reduction of the proposed penalty. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $103,100 for violation of 49 C.F.R. § 192.605(a). Payment for this Item was also received by wire transfer on December 14, 2016. COMPLIANCE ORDER The Notice proposed a compliance order with respect to Items 4 and 5 in the Notice for 5 These amounts are adjusted annually for inflation. See, e.g., Pipeline Safety: Inflation Adjustment of Maximum Civil Penalties, 82 Fed. Reg. 19325 (April 27, 2017).#

420161011_Final Order_10242017_text.pdf, page 6CPF No. 4-2016-1011 Page 5 violations of 49 C.F.R. §§ 192.603(b) and 192.605(a), respectively. Under 49 U.S.C. § 60118(a), each person who engages in the transportation of gas or who owns or operates a pipeline facility is required to comply with the applicable safety standards established under chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions to ensure compliance with the pipeline safety regulations applicable to its operations: 1. With respect to the violation of § 192.603(b) (Item 4), Respondent must provide training to field personnel to ensure inspections are properly and completely documented in accordance with procedures and the usage of the work management system (MAXIMO); 2. With respect to the violation of § 192.603(b) (Item 4), Respondent must provide documentation of the training personnel received. Respondent must also provide the dates of when the training was completed and the names of the individuals who would be performing and documenting the inspections of pressure-limited and control device set points; 3. With respect to the violation of § 192.605(a) (Item 5), Respondent must provide training to field personnel to ensure emergency valve inspections are properly conducted and documented, as per Kinder Morgan’s O&M Procedure, O&M 301 Inspection and Servicing Emergency Valves; 4. With respect to the violation of § 192.605(a) (Item 5), Respondent must provide documentation of the training personnel received. Respondent must also provide the dates of when the training was completed and the names of the individuals who would be performing and documenting the inspections of emergency valves, and more specifically document valve and component conditions and whether the valve was partially or fully successfully operated; and 5. Complete Compliance Order Items 1 through 4 within 60 days following receipt of the Final Order. The Director may grant an extension of time to comply with any of the required items upon a written request timely submitted by the Respondent and demonstrating good cause for an extension. In addition, pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is requested (not mandated) to take the following action: NGPL should maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Director, Southwest Region, Pipeline and Hazardous Materials Safety Administration. It is requested that these costs be reported in two categories: 1) total cost associated with preparation/revision of plans, procedures, studies and analyses; and 2) total cost associated with replacements, additions and other changes to pipeline infrastructure. Failure to comply with this Order may result in the administrative assessment of civil penalties#

420161011_Final Order_10242017_text.pdf, page 7CPF No. 4-2016-1011 Page 6 not to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for each day the violation continues or in referral to the Attorney General for appropriate relief in a district court of the United States. WARNING ITEMS With respect to Items 1 and 2, the Notice alleged probable violations of Part 192 but did not propose a civil penalty or compliance order for these items. Therefore, these are considered to be warning items. The warnings were for: 49 C.F.R. § 192.605(a) (Item 1) ─ Respondent’s alleged failure to follow its own manual of written procedures for conducting operating and maintenance activities and for emergency response. NGPL failed to follow Kinder Morgan’s O&M Procedure, O&M 1900, Emergency Response, 4. Training, in that NGPL failed to document verification of personnel’s knowledge of emergency procedures or verification of training effectiveness as required by the procedure; and 49 C.F.R. § 192.605(a) (Item 2) ─ Respondent’s alleged failure to follow a manual of written procedures for conducting operating and maintenance activities and for emergency response. NGPL failed to follow Kinder Morgan’s O&M Procedure, O&M 159, Emergency Reporting and Investigation, in that NGPL failed to document a review of employee activities for the purpose of determining whether the Emergency Plan procedures were effectively followed. NGPL presented information in its Response showing that it will take certain actions to address the cited items. If OPS finds a violation of any of these items in a subsequent inspection, Respondent may be subject to future enforcement action. The terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R. § 190.5. October 24, 2017 ___________________________________ __________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety#