PERMIAN EXPRESS PARTNERS LLC — Warning Letter

42023001WL_Warning Letter_01262023_(22-232870)_text.pdf, page 1Official PDFWARNING LETTER VIA ELECTRONIC MAIL January 26, 2023 Greg McIlwain Executive Vice President Operations Permian Express Partners, LLC 1300 Main Street Houston, Texas 77002 CPF 4-2023-001-WL Dear Mr. McIlwain: From June 6, 2022, through September 2, 2022, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected Permian Express Partners LLC’s (Permian), Texas and Louisiana area facilities. As a result of the inspection, it is alleged that Permian committed a probable violation of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and the probable violation is: 1. § 195.412 Inspection of rights-of-way and crossings under navigable waters. (a) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times each calendar year, inspect the surface conditions on or adjacent to each pipeline right-of-way. Methods of inspection include walking, driving, flying or other appropriate means of traversing the right-of-way. Permian Express failed to inspect the surface conditions on or adjacent to each pipeline righ-of- way at intervals not exceeding 3 weeks, but at least 26 times each calendar year in accordance with §195.412(a). Specifically, Permian Express inspected the right-of-way at Finney to Boyce 20"/22" on 1/27/2021 and 2/23/2021, six days beyond the three-week interval.#

42023001WL_Warning Letter_01262023_(22-232870)_text.pdf, page 2Therefore, Permian Express Operator failed to inspect the surface conditions on or adjacent to each pipeline right-of-way at intervals not exceeding 3 weeks, but at least 26 times each calendar year in accordance with § 195.412(a). Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed $239,142 per violation per day the violation persists, up to a maximum of $2,391,412 for a related series of violations. For violation occurring on or after May 3, 2021 and before March 21, 2022, the maximum penalty may not exceed $225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a related series of violations. For violations occurring on or after January 11, 2021, and before May 3, 2021, the maximum penalty may not exceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a related series of violations. For violations occurring on or after July 31, 2019, and before January 11, 2021, the maximum penalty may not exceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related series of violations. For violations occurring on or after November 27, 2018, and before July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679. For violations occurring on or after November 2, 2015, and before November 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not to exceed $2,090,022. 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 item identified in this letter. Failure to do so may result in Permian 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 4-2023-001-WL. 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, Bryan Lethcoe Director, Southwest Region Pipeline and Hazardous Materials Safety Administration cc: Todd Nardozzi, Director Regulatory Compliance, todd.nardozzi@energytransfer.com#