SUNOCO PARTNERS MARKETING & TERMINALS LP — Safety Order

420185021S_Consent Agreement and Order_03062019_text.pdf, page 1Official PDFVIA EMAIL AND CERTIFIED MAIL: Mr. Gregory McIlwain Chief Executive Officer and Chairman Energy Transfer, L.P. 8111 Westchester Drive Dallas, Texas 75225 RE: In the Matter of Sunoco Partners Marketing & Terminals, L.P. – CPF No. 4-2018- 5021S Dear Mr. Warren: Enclosed please find the fully executed Consent Agreement and Order that resolves the issues underlying the Notice of Proposed Safety Order issued by PHMSA on October 4, 2018 to your subsidiary, Sunoco Partners Marketing and Terminals, L.P., in the above-referenced proceeding. Your receipt of this Consent Agreement and Order constitutes service, 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: Ms. Mary McDaniel, Director, Southwest Region, OPS Ms. Linda Daugherty, Deputy Associate Administrator for Field Operations, Pipeline Safety, OPS Mr. Gregory McIlwain, Senior Vice President, Operations, Energy Transfer, L.P. Ms. Jennifer Street, Executive Vice President, Energy Transfer, L.P. Mr. Jonathan Hunt, Vice President, Terminal Operations, Energy Transfer, L.P. Mr. Mark Milliken, Senior Director, Safety, Process and Pipelin Safety and Asset Security, Energy Transfer, L.P. Mr. Todd Nardozzi, Senior Manager, DOT Compliance, Energy Transfer, L.P. Ms. Annie Cook, Counsel, Troutman Sanders, LLP, 600 Peachtree Street, NE, Suite 3000, Atlanta, GA 3030#

420185021S_Consent Agreement and Order_03062019_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 ) ) ) Sunoco Partners Marketing & Terminals, L.P., a subsidiary of Energy Transfer, L.P. ) Respondent. ) ) ) ) CPF No. 4-2018-5021S CONSENT AGREEMENT AND ORDER On October 4, 2018, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a Notice of Proposed Safety Order (Notice), to Sunoco Partners Marketing and Terminals, L.P. (Sunoco), a wholly owned subsidiary of Energy Transfer, L.P. (Sunoco or Respondent). The Notice alleged that conditions exist on certain pipeline facilities owned and operated by Sunoco in Nederland, Texas that pose a pipeline integrity risk to public safety, property or the environment. The Notice also made preliminary findings of fact and proposed corrective measures. On November 2, 2018, Sunoco responded to the Notice by submitting a timely written response and request for an informal consultation pursuant to 49 C.F.R. § 190.239(b)(2). An informal consultation was held on January 30, 2019, between representatives from Sunoco and PHMSA. By entering into this Consent Agreement, Sunoco agrees that no further administrative hearing will be provided for in this matter pursuant to 49 C.F.R. § 190.239(b)(2). Accordingly, upon consent and agreement of the Parties and in accordance with 49 C.F.R. § 190.219, PHMSA and Sunoco hereby agree to the terms and conditions set forth in this Consent Agreement and Order (Agreement and Order) to resolve the issues underlying the Notice. I. General Provisions 1. Respondent acknowledges that as the operator of certain pipeline facilities at Sunoco’s Nederland Terminal that are regulated by PHMSA, Sunoco is 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 further 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. The relevant assets that are jurisdictional to PHMSA include, breakout tanks and associated in-plant piping.#

420185021S_Consent Agreement and Order_03062019_text.pdf, page 3CPF No. 4-2018-1002 Page 2 2. Respondent does not admit or deny any allegation or conclusion in the Notice, but agrees for purposes of this Agreement to complete the corrective actions specified in Section II of this Agreement and Order (Corrective Measures) and to abide by the terms of this Agreement and Order. This Agreement and Order does not constitute a finding of violation of any Federal law or regulation and may not be used in any civil or administrative proceeding of any kind as evidence or proof of any fact, fault or liability, or as evidence of the violation of any law, rule, regulation or requirement, except in a proceeding to enforce the provisions of this Agreement and Order. 3. Respondent consents to the issuance of this Agreement and 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 this Agreement and Order, including all rights to administrative or judicial hearings, reviews, or appeals, except as set forth herein. 4. This Agreement and Order shall apply to, and be binding upon, PHMSA and Sunoco, 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 Order and any incorporated work plans and schedules to all of Sunoco’s officers, employees, and agents whose duties might reasonably include compliance with this Agreement and Order. 5. For any transfer of ownership or operating responsibility of Sunoco’s pipeline facility in Nederland, Texas occurring during the term of this Agreement and Order, Respondent will provide a copy of this document to the prospective transferee at least 30 days prior to such transfer and simultaneously provide written notice of the prospective transfer to the PHMSA Southwest Region Director (Director). 6. This Agreement and Order constitutes the final, complete and exclusive agreement and understanding between the Parties with respect to the settlement embodied herein. The Parties acknowledge that there are no representations, agreements, or understandings relating to settlement other than those expressly contained in this Agreement and Order, except that the terms of this Agreement and Order may be construed by reference to the Notice. 7. Nothing in this Agreement and Order 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 and Order alters PHMSA’s right of access, entry, inspection, and information gathering, or PHMSA’s authority to bring enforcement action(s) against Sunoco pursuant to the Federal pipeline safety laws, the regulations and orders issued thereunder, or any other provision of Federal or State law, including additional enforcement action relating to Sunoco’s regulated pipeline facilities in Nederland, Texas. 8. This Agreement and Order does not waive or modify any Federal, State, or local law or regulation applicable to Respondent’s facility in Nederland, Texas. This Agreement and Order is not a permit, or a modification of any permit, under any Federal, State, or local laws or regulations. Sunoco remains responsible for achieving and maintaining compliance with all applicable Federal, State, and local laws, regulations and permits.#

420185021S_Consent Agreement and Order_03062019_text.pdf, page 4CPF No. 4-2018-1002 Page 3 9. This Agreement and Order does not create rights in, or grant any cause of action to, any third party not party to this Agreement and Order. U.S. Department of Transportation and PHMSA are 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 and Order. Sunoco agrees to hold harmless U.S. Department of Transportation, PHMSA, 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 and Order. 10. This Agreement and Order resolves the underlying issues in the Notice. This Agreement and Order makes no findings of violation. 11. Upon the issuance of the Agreement and Order, Sunoco agrees to perform the Corrective Measures set forth below. II. Corrective Measures 12. Complete Inventory. Within 90 days after this Agreement and Order is issued, Respondent must submit to the Director a complete inventory of all tanks and piping subject to regulatory oversight under 49 CFR Part 195. 13. Remedial Work Plan. Within 120 days after this Agreement and Order is issued, Respondent must submit to the Director for approval, a written remedial work plan (Plan) that includes corrective measures. Once approved, the Plan shall automatically become incorporated into this Order. The Plan must include provisions to: a. Determine or confirm the maximum operating pressure (MOP) for all regulated piping and pipeline components consistent with § 195.406. i. Identify all regulated piping segments and the methods used to safely validate the MOP of those segments. ii. Identify measures Sunoco will take to ensure the continued integrity of all regulated piping and components as the MOP verification is in progress. The Plan must address the incorporation of the regulated pipeline facilities at the Nederland Terminal in Sunoco’s spill response plan, as appropriate, in accordance with 49 C.F.R. Part 194. b. Install overpressure safety equipment, as appropriate, on all regulated pipeline components consistent with § 195.428. Complete inspections on regulated tanks consistent with § 195.432. The Plan must include a risk based prioritization schedule to complete the tank inspections and to complete mandatory repairs prior to returning the tanks to service. d. Install cathodic protection on designated regulated underground piping and components as appropriate, consistent with § 195.563. 14. Timeline. The Plan must include a proposed timeline for completion of the corrective measures required in Paragraph 13. c.#

420185021S_Consent Agreement and Order_03062019_text.pdf, page 5CPF No. 4-2018-1002 Page 4 15. Procedures. Upon request, and consistent with existing 49 C.F.R. Part 195 regulations, Respondent must submit to the Director any written procedures that will be used to complete the actions required by the Plan. 16. Plan Revisions. Respondent must revise the Plan as necessary to incorporate new information obtained during the evaluations and associated remedial activities. Respondent must submit any such revisions to the Director for approval prior to implementation and the Director shall respond within a reasonable time. 17. Plan Implementation. The Plan must be implemented as it is approved by the Director, including any revisions to the Plan. Results of actions taken in accordance with the approved Plan must be available for review by PHMSA. The Director may approve Plan elements incrementally, within a reasonable time. 18. Integrity Management Program. Within 30 days after this Order is issued, Respondent must submit documentation to the Director that confirms that regulated pipeline facilities at the Nederland Terminal have been incorporated into an Integrity Management Program, consistent with § 195.452. 19. Reporting. Reports must be submitted to the Director on a quarterly basis and must, 1) include all available data and results of the testing and evaluations required by this Order, and 2) describe the progress of all actions being undertaken pursuant to this Order. This schedule may be extended by written agreement with the Director. A final summary report of work performed on items required by this Order must be submitted to the Director within 30 days of the completion of the last action performed by Sunoco that is set forth in this Order. 20. Voluntary Submission. It is requested (not mandated) that Sunoco maintain documentation of the safety improvement costs associated with fulfilling this Order and submit the total to the Director. 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. 21. Special Permits. If Respondent’s Plan or revisions to the Plan at any time includes applying for a special permit per § 190.341, a description must be included of any anticipated permits as well as a proposed timeline for all application submissions. Respondent must respond to any information requests made by PHMSA pursuant to such applications throughout the special permit application process within 30 days of each request. The status of special permit applications made pursuant to the Plan must be included in the quarterly reports (see Paragraph 19). For any special permit applications filed under the Plan, Respondent agrees to cooperate fully in the special permit process per § 190.341. The Director has the discretion to enforce this Order and/or the applicable pipeline safety regulations consistent with 49 C.F.R. Parts 190 and 195, subject to extensions of time granted under Section IV. and modifications of this Agreement approved under Section IX. If any special permit application included in the Plan is denied by PHMSA or#

420185021S_Consent Agreement and Order_03062019_text.pdf, page 6CPF No. 4-2018-1002 Page 5 withdrawn by Respondent, Respondent must amend its Plan accordingly and submit it to Director within 30 days of the denial for approval. III. Approvals 22. With respect to the submissions under this Agreement and Order requiring the approval of the Director, the Director shall act promptly to: (a) approve, in whole or part, the submission; (b) approve the submission on specified conditions; (c) disapprove, in whole or in part, the submission, directing that Sunoco modify the submission; or (d) any combination of the above. In the event of approval or approval upon conditions, Respondent will proceed to take all action required by the submission, as approved or conditioned by the Director. If the Director conditions or disapproves all or any portion of a submission, the Director shall in writing state with specificity the basis for the decision and Respondent will resubmit it to address the stated issues. If a resubmitted item is disapproved in whole or in part, the Director may again require Respondent to address the stated issues in accordance with the foregoing procedure, and the Parties may proceed to dispute resolution according to Section V. below. IV. Extensions of Time 23. The Director may grant an extension of time for compliance with any of the terms of this Agreement and Order upon a written request submitted at least 15 days prior to a stated deadline, demonstrating good cause for an extension. The Director shall respond within a reasonable time to any request for extension of time. V. Dispute Resolution 24. The Director and Sunoco will attempt to resolve informally any disputes arising under this Agreement and Order, including but not limited to any decision of the Director. The Director and Sunoco will first confer in an effort to resolve any dispute. If the Director and Sunoco are unable to resolve informally the dispute within 10 calendar days, Sunoco may request in writing, within 10 days, a written determination resolving the dispute by the Associate Administrator for Pipeline Safety, PHMSA. Along with its request, Sunoco will provide the Associate Administrator with all information Sunoco believes is relevant to the dispute. If the request is submitted as provided herein, the Associate Administrator will promptly issue a written determination that shall be final. Decisions of the Associate Administrator will constitute final agency action, and are subject to judicial appeal. The existence of a dispute and PHMSA’s consideration of matters placed in dispute shall not excuse, toll, or suspend any term or timeframe for completion of any work to be performed under this Agreement and Order during the pendency of the dispute resolution process, except as agreed by the Director or the Associate Administrator in writing. VI. Enforcement 25. This Agreement and Order may be enforced by PHMSA pursuant to enforcement authorities available to the PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190. All deadlines set forth or referenced in this Agreement and Order will be automatically incorporated#

420185021S_Consent Agreement and Order_03062019_text.pdf, page 7CPF No. 4-2018-1002 Page 6 into this Agreement and Order and, subject to Respondent’s right to request an extension of time under Section IV and modify this Agreement under Section IX, are enforceable in the same manner. VII. Recordkeeping and Information Disclosure 26. Except as otherwise provided herein, Sunoco agrees to maintain records demonstrating compliance with all requirements of this Agreement and Order for a period of at least five years. 27. For any reports, plans, or other deliverables required to be submitted to PHMSA pursuant to this Agreement and Order, 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 and Order in accordance with 49 C.F.R. Part 7 and 49 C.F.R. § 190.343. 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 will determine the release of any information submitted pursuant to this Agreement and Order 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. VIII. Effective Date 28. The term “Effective Date,” as used herein, is the date on which this Agreement and Order is fully executed by the Parties. Unless specified to the contrary, all deadlines for actions required by this Agreement and Order run from the Effective Date. IX. Modification 29. The terms of this Agreement and Order may be modified by mutual agreement of the Parties. Such modifications must be in writing and signed by both parties. X. Termination 30. This Agreement and Order terminates upon completion of Section II and all corrective measures, as determined by the Director. Sunoco may request written confirmation from PHMSA when this Agreement and Order is terminated and the Director will provide such confirmation within a reasonable time. Nothing in this Agreement and Order prevents Respondent from completing any of the obligations earlier than the deadlines provided for in this Agreement and Order. XI. Ratification 31. The Parties’ undersigned representatives certify that they are fully authorized to enter into the terms and conditions of this Agreement and Order and to execute and legally bind such party to this document.#

420185021S_Consent Agreement and Order_03062019_text.pdf, page 8CPF No. 4-2018-1002 Page 7 32. The Parties hereby agree to all conditions and terms of this Agreement and Order. For Sunoco Partners Marketing & Terminals, LP, as subsidiary of Energy Transfer, LP (Respondent): ___________________________________ ________________________ Date For PHMSA: ___________________________________ Alan K. Mayberry Associate Administrator for Pipeline Safety Pipeline and Hazardous Materials Safety Administration U.S. Department of Transportation ________________________ Date#

420185021S_Notice of Proposed Safety Order_10042018_text.pdf, page 1Official PDFCERTIFIED MAIL - RETURN RECEIPT REQUESTED October 4, 2018 Ryan Coffey Executive Vice President of Operations Sunoco Marketing & Terminals, L.P. 800 East Sonterra Blvd. San Antonio, Texas 78258 CPF 4-2018-5021S Dear Mr. Coffey: Enclosed is a Notice of Proposed Safety Order (Notice) issued in the above-referenced case. The Notice proposes that you take certain measures with respect to your Gulf Coast Terminal to ensure pipeline safety. Your options for responding are set forth in the Notice. Your receipt of the Notice constitutes service of that document under 49 C.F.R. § 190.5. We look forward to a successful resolution to ensure pipeline safety. Please direct any questions on this matter to me at 713-272-2859. Sincerely, Mary L. McDaniel, P.E. Director, Southwest Region Pipeline and Hazardous Materials Safety Administration Enclosure: Notice of Proposed Safety Order cc: Mr. Alan K. Mayberry, Associate Administrator for Pipeline Safety, OPS Ms. Linda Daugherty, Deputy Associate Administrator for Field Operations, OPS#

420185021S_Notice of Proposed Safety Order_10042018_text.pdf, page 2DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY SOUTHWEST REGION HOUSTON, TEXAS 77074 __________________________________________ ) In the Matter of ) ) Sunoco Partners Marketing & Terminals, L.P. ) CPF No. 4-2018-5021S ) Respondent. ) __________________________________________) NOTICE OF PROPOSED SAFETY ORDER Background and Purpose Pursuant to Chapter 601 of title 49, United States Code, the Pipeline and Hazardous Materials Safety Administration (PHMSA) has initiated an investigation of the safe operation of the Sunoco Partners Marketing &Terminals, L.P.’s (Sunoco) Gulf Coast Terminal in Nederland, Texas. As a result of the investigation, it appears that conditions exist on your pipeline facilities that pose a pipeline integrity risk to public safety, property or the environment. Pursuant to 49 U.S.C. § 60117(l), PHMSA issues this Notice of Proposed Safety Order, notifying you of the preliminary findings of the investigation, and proposing that you take measures to ensure that the public, property, and the environment are protected from the potential risk. For purposes of this Notice, the term “Affected Breakout Tank Facility” means the 71 crude oil storage tanks and associated piping identified as PHMSA regulated within the Gulf Coast Terminal. Preliminary Findings • The Gulf Coast Terminal (Terminal), is entirely located in Jefferson County, Texas at 2200 North Highway 347, Nederland, Texas 77627. The facility has a total of 1301 storage tanks and has associated facility piping of varying outside diameter. The approximate storage capacity within the terminal is 28 million barrels of crude oil and one million barrels of natural gas liquids. The Terminal can receive product via ship or pipeline, and deliver 1 SLP Response to SW Region RFI 3/17/2017#

420185021S_Notice of Proposed Safety Order_10042018_text.pdf, page 32 product through barges, third-party pipelines, and ships. The Terminal has its own control center.2 The Terminal serves as a hub for crude oil transportation in the Gulf Coast markets. • The Terminal stores and transports crude oil of various quality, natural gas liquids, and other refined products. The regulated storage tanks exclusively transport crude oil. • The Terminal is located on the Gulf Coast, a subtropical climate, subject to tropical storms and hurricanes. • The Terminal is intersected by Drinking Water High Consequence Areas (HCA), and bounded by High Populated Areas (HCA). • The Terminal is bounded by the City of Nederland, Texas to the South, and the Neches River to the North. The surrounding population density is 959/sq. mi.3 • The conditions described above are not restricted to a certain area of the Terminal, but apply to all pipeline components within the facility that are determined to be in transportation. • There is no record of a PHMSA OPS inspection on the Affected Breakout Tank Facility operated by Sunoco prior to an August 12, 2016 event. • During the review of the accident that occurred at the Terminal on August 12, 2016, the Southwest Region discovered that Sunoco was operating tanks and piping that were not properly identified as jurisdictional under Part 195. Sunoco provided documents reviewed by OPS staff that indicated portions of the Terminal considered by Sunoco to be non-jurisdictional were in fact subject to pipeline safety regulations. The Region prepared an enforcement action against Sunoco Pipeline, L.P. (CPF No. 4-2017-5011)4 . • Subsequent to this event, Sunoco communicated their uncertainty regarding the application of Part 195 within the Terminal to PHMSA, using a previous assessment concluding only five storage tanks were subject to PHMSA safety regulations.5 • After an investigation and discussion with PHMSA, Sunoco has identified 71 storage tanks and associated piping (Affected Breakout Tank Facility) within the Terminal that are subject to PHMSA regulation pursuant to 49 C.F.R. Part 195. 2 Sunoco Logistics Partners L.P Form 10-K 2016. 3 https://echo.epa.gov/detailed-facility-report?fid=110008146158 4 4-2017-5011, Final Order issued June 15, 2018 found that Sunoco violated 49 CFR 195.54(a) and 195.52(a) following a failure within the Terminal August 12, 2016. The accident resulted in a release of approximately 4.2 gallons on crude and four injuries to contract workers. The Compliance Order directed Sunoco to submit a PHMSA Form PHMSA F 7000.1 for the accident, investigative reports and corrective actions identified as a result of the investigation. 5 Sunoco Partners Marketing & Terminals Letter to OPS Counsel (August 23, 2016).#

420185021S_Notice of Proposed Safety Order_10042018_text.pdf, page 43 • Sunoco provided information to the Region indicating a significant portion of regulated piping within the Terminal has not been subjected to a pressure test. In the absence of historical records, the maximum operating pressure for PHMSA regulated pipeline components can only be properly established in accordance with § 195.406 through the application of a pressure test. • The majority of the storage tanks were constructed to the API Standard 650, or its predecessor. Station piping is located both underground and aboveground. The Terminal has expanded in capacity throughout its history with 39 of the 71 storage tanks constructed after January 1, 2000. • As Sunoco had not reported failures subject to § 195.50 prior to September 2017, relevant pipeline accident history is limited to releases reported by other regulated second and third- party pipeline operators whose facilities originate or terminate within the Terminal. Since 2002, at least seven accidents or incidents have been reported to PHMSA, occurring on regulated pipeline facilities operated within the terminal since 2002, but not necessarily on assets operated by Sunoco. Reportedly, a release occurred in January 2016 due to improper pipe support6 . The August 2016 accident within the facility involved the release of crude oil and injury to four contract workers. • The continued operation of pipelines and storage tanks in transportation without the historical application of pipeline safety regulations presents an elevated risk of harmful consequence to the safety of personnel, potential impact to the surrounding environment and property. An assessment of Terminal’s compliance with applicable regulations is necessary to conclude that the likelihood of the pipeline and storage tanks serviceability is at risk. Proposed Issuance of Safety Order Section 60117(l) of Title 49, United States Code, provides for the issuance of a safety order, after reasonable notice and the opportunity for a hearing, requiring corrective measures, which may include physical inspection, testing, repair, or other action, as appropriate. The basis for making the determination that a pipeline facility has a condition or conditions that pose a pipeline integrity risk to public safety, property, or the environment is set forth both in the above-referenced statute and 49 C.F.R. § 190.239, a copy of which is enclosed. After evaluating the foregoing preliminary findings of fact and considering the age of the pipe involved, the manufacturer, the hazardous nature of the product transported and the pressure required for transporting such product, the characteristics of the geographical areas where the pipeline facility is located, and the likelihood that the conditions could worsen or develop on other areas of the pipeline and potentially impact its serviceability, it appears that the continued operation of the affected pipeline without corrective measures would pose a pipeline integrity risk to public safety, property, or the environment. 6 Executive Summary – Enforcement Matter – Case No. 52004#

420185021S_Notice of Proposed Safety Order_10042018_text.pdf, page 54 Accordingly, PHMSA issues this Notice of Proposed Safety Order to notify Sunoco of the proposed issuance of a safety order and to propose that Sunoco take measures specified herein to address the potential risk. Proposed Corrective Measures Pursuant to 49 U.S.C. § 60117(l) and 49 C.F.R. § 190.239, PHMSA proposes to issue to Sunoco Partners Marketing & Terminals, L.P. a safety order incorporating the following remedial requirements with respect to the Affected Breakout Tank Facility: 1. Within 90 days after a safety order is issued, develop and submit to the Director for approval a written remedial work plan that includes corrective measures. The work plan (Plan) must include provisions to: a. Provide a complete inventory of all tanks and piping subject to regulatory oversight under49 CFR Part 195. b. Establish or confirm the maximum operating pressure for regulated piping and pipeline components in accordance with § 195.406. The Plan must: i. Identify all piping segments and the methods used to safely validate the MOP. ii. Provide for continued integrity of piping as the schedule to establish an MOP progresses. c. Install overpressure safety equipment, as appropriate, on all regulated pipeline components. d. Complete inspections on tanks in accordance with § 195.432. The Plan must include a risk based prioritization schedule to complete the above inspections, and complete mandatory repairs prior to returning the tank to service. e. Install cathodic protection on designated underground piping and components as appropriate, in accordance with § 195.563. f. Incorporate the Nederland Terminal, as appropriate, into an Integrity Management Plan per § 195.452 by September 6, 2018. 2. The Plan must include proposed timeline for completion of the actions required by paragraphs (1) of this Item. 3. Submit to the Director, all written procedures that will be used to complete the requirements of the Safety Order. 4. Revise the Plan as necessary to incorporate new information obtained during the evaluations and associated remedial activities. Submit any such plan revisions to the#

420185021S_Notice of Proposed Safety Order_10042018_text.pdf, page 65 Director for prior approval. The Director may approve plan elements incrementally. The remedial work plan shall become incorporated into the safety order. 5. Implement the work plan as it is approved by the Director, including any revisions to the plan. Results of actions taken in accordance with the approved plan must be available for review by PHMSA or its representative. 6. Submit quarterly reports to the Director that: (1) include available data and results of the testing and evaluations required by the safety order; and (2) describe the progress of the repairs and other remedial actions being undertaken. 7. A final summary report of work performed on the above items must be submitted to the Director within 30 days of the completion of the last action performed by Sunoco that is set forth in this Safety Order. 8. The Director may grant an extension of time for compliance with any of the terms of the safety order upon a written request timely submitted demonstrating good cause for an extension. 9. Sunoco may appeal any decision of the Director to the Associate Administrator for Pipeline Safety. Decisions of the Associate Administrator shall be final. 10. It is requested (not mandated) that Sunoco Partners Marketing & Terminals, L.P. maintain documentation of the safety improvement costs associated with fulfilling this Safety Order and submit the total to the 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. The actions proposed by this Notice of Proposed Safety Order are in addition to and do not waive any requirements that apply to Sunoco’s pipeline system under 49 C.F.R. Parts 190 through 199, under any other order issued to Sunoco under authority of 49 U.S.C. § 60101 et seq., or under any other provision of Federal or state law. After receiving and analyzing additional data in the course of this proceeding and implementation of the work plan, PHMSA may identify other safety measures that need to be taken. In that event, Sunoco will be notified of any proposed additional measures and, if necessary, amendments to the work plan or safety order. Response to this Notice In accordance with § 190.239, you have 30 days following receipt of this Notice to submit a written response to the official who issued the Notice. If you do not respond within 30 days, this constitutes a waiver of your right to contest this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to#

420185021S_Notice of Proposed Safety Order_10042018_text.pdf, page 76 you and to issue a Safety Order. In your response, you may notify that official that you intend to comply with the terms of the Notice as proposed, or you may request that an informal consultation be scheduled (you will also have an opportunity to request an administrative hearing before a safety order is issued). Informal consultation provides you with the opportunity to explain the circumstances associated with the risk condition(s) alleged in the notice and, as appropriate, to present a proposal for a work plan or other remedial measures, without prejudice to your position in any subsequent hearing. If you and PHMSA agree within 30 days of informal consultation on a plan and schedule for you to address each identified risk condition, the parties may enter into a written consent agreement, in which case PHMSA would then issue an administrative Consent Order incorporating the terms of the agreement. If a consent agreement is not reached, or if you have elected not to request informal consultation, you may request an administrative hearing in writing within 30 days following receipt of the Notice or within 10 days following the conclusion of an informal consultation that did not result in a consent agreement, as applicable. Following a hearing, if the Associate Administrator finds the facility to have a condition that poses a pipeline integrity risk to the public, property, or the environment in accordance with § 190.239, the Associate Administrator may issue a final Safety Order. 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). In your correspondence on this matter, please refer to CPF 4-2018-5021S and for each document you submit, please provide a copy in electronic format whenever possible. ___________________________________ Mary L. McDaniel, P.E. Director, Southwest Region Pipeline and Hazardous Materials Safety Administration October 4, 2018__ Date issued#