ONEOK NGL PIPELINE, LLC — Notice of Probable Violation

party submissionOfficial PDF42024036NOPV_Operator Response to Notice and Request for Hearing and Request for Informal Conference_11212024_(23-264819).pdf#

party submissionOfficial PDF42024036NOPV_Operator Withdrawal of Hearing Request_05122025_(23-264819).pdf#

case documentOfficial PDF42024036NOPV_PCO_10222024_(23-264819).pdf#

case documentOfficial PDF42024036NOPV_PCO_10222024_(23-264819)_text.pdf#

42024036NOPV_PHC Hearing Scheduled_12022024_(23-264819)_text.pdf, page 1Official PDFDecember 2, 2024 VIA ELECTRONIC MAIL TO: danny.scroggins@oneok.com and bryan.lethcoe@dot.gov Mr. Charles L. Misak Director, Integrated Operations ONEOK, Inc. 100 West Fifth Street Tulsa, OK 74103 Mr. Bryan Lethcoe Director, Southwest Region Pipeline and Hazardous Materials Safety Administration 8701 South Gessner Road, Suite 630 Houston, Texas 77074 Re: Notice of Hearing, ONEOK NGL Pipeline, LLC CPF No. 4-2024-036-NOPV Dear Mr. Misak and Mr. Lethcoe: 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 April 10, 2025, following another hearing involving the same parties already scheduled on that date in Case No. CPF 4-2024-025-NOPV. The hearing will take place at the PHMSA Southwest Region office, 8701 South Gessner Road, Suite 630, Houston, TX 77074. 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 (713) 272-2859. At least 10 calendar days prior to the hearing (or by March 31, 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.#

42024036NOPV_PHC Hearing Scheduled_12022024_(23-264819)_text.pdf, page 2Sincerely, Larry White Presiding Official cc: Mr. Jason Smith, Vice President Asset Integrity, ONEOK NGL Pipeline, LLC, jason.a.smith@oneok.com Mr. Danny Scroggins, Legal Counsel, ONEOK NGL Pipeline, LLC, danny.scroggins@oneok.com Mr. Timothy O’Shea, OPS Southwest Region Counsel, PHMSA, timothy.o’shea@dot.gov Ms. Kelsey Gagnon, OPS Southwest Region Counsel, PHMSA, kelsey.gagnon@dot.gov#

42024036NOPV_Consent Agreement and Order_06042025_(23-264819)_text.pdf, page 1Official PDFJune 4, 2025 VIA ELECTRONIC MAIL TO: pierce.norton@oneok.com Pierce Norton President & Chief Executive Officer ONEOK NGL Pipeline, LLC 100 West Fifth Street Tulsa, Oklahoma 74103 CPF No. 4-2024-036-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 ONEOK NGL Pipeline, LLC, which was executed on May 1, 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 CFR § 190.5. Thank you for your cooperation in this matter. Sincerely, Alan K. Mayberry Associate Administrator for Pipeline Safety Enclosure: Consent Order and Consent Agreement cc: Brent Theede, Regulatory Compliance Supervisor, brent.theede@oneok.com#

42024036NOPV_Consent Agreement and Order_06042025_(23-264819)_text.pdf, page 2CONFIRMATION OF RECEIPT REQUESTED#

42024036NOPV_Consent Agreement and Order_06042025_(23-264819)_text.pdf, page 3U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) ONEOK NGL Pipeline, LLC, ) CPF No. 4-2024-036-NOPV ) ) ) Respondent. ) ____________________________________) CONSENT ORDER By letter dated October 22, 2024, pursuant to 49 CFR § 190.207, the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation and Proposed Compliance Order (Notice) to ONEOK NGL Pipeline, LLC (ONEOK or Respondent). In response to the Notice, Respondent contested one of the alleged violations and the accompanying proposed compliance order and requested a hearing (Response). ONEOK also requested to meet informally with PHMSA to discuss the matters raised in its Response. Respondent and PHMSA (the Parties) subsequently met on February 18, 2025 and March 31, 2025. As a result of those discussions, the Parties have agreed to a Consent Agreement by which PHMSA makes a finding of violation for one of the Items alleged in the Notice, PHMSA withdraws one of the Items alleged in the Notice, and Respondent will complete certain compliance actions. Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this Consent Order issued pursuant to § 190.219. ONEOK 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 CFR § 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 CFR § 190.5. ______________________ ______________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety#

42024036NOPV_Consent Agreement and Order_06042025_(23-264819)_text.pdf, page 4U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) ONEOK NGL Pipeline, LLC, ) CPF No. 4-2024-036-NOPV ) ) ) Respondent. ) ____________________________________) CONSENT AGREEMENT From March 21 through December 27, 2023, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of Title 49, United States Code (U.S.C.), conducted an on-site pipeline safety inspection of ONEOK NGL Pipeline, LLC’s (ONEOK or Respondent) natural gas liquids (NGL) and liquefied petroleum gas pipeline facilities in Kansas, Missouri, Iowa, Indiana, and Illinois. As a result of the inspection, the Director, Southwest Region, OPS (Director), issued to Respondent, by letter dated October 22, 2024, a Notice of Probable Violation and Proposed Compliance Order (Notice). In accordance with 49 CFR § 190.207, the Notice proposed finding that ONEOK committed two violations of 49 CFR Part 195 (Items 1 and 2), and proposed ordering Respondent to take certain measures to correct the alleged violations. ONEOK responded to the Notice by letter dated November 21, 2024 (Response). Respondent contested one of the alleged violations and its proposed compliance order, and requested a hearing on that item. ONEOK 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 of those discussions and as explained in more detail below, the Parties have agreed to a Consent Agreement by which PHMSA withdraws Item 1, makes a finding of violation for Item 2 as alleged in the Notice, and by which Respondent agrees to complete certain compliance actions. Having 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 CFR Part 190, and upon consent and agreement, the Parties hereby agree as follows: I. General Provisions#

42024036NOPV_Consent Agreement and Order_06042025_(23-264819)_text.pdf, page 51. 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 bring 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.#

42024036NOPV_Consent Agreement and Order_06042025_(23-264819)_text.pdf, page 68. 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. Finding of Violation: 11. Item 2 - 49 CFR § 195.452(h)(1): The Notice alleged that ONEOK failed to take prompt action to address all anomalous conditions in its pipeline it discovered through its information analysis in accordance with section 195.452(h)(1). Specifically, the Notice alleged that ONEOK failed to promptly remediate external corrosion issues (AC related) after it discovered a leak due to AC stray current induced corrosion and after several inspections identified AC pipe-to-soil voltages greater than 15 volts over consecutive years on pipeline segment 11107 (PL107 Morris to Lemont 10 in) of North System. Respondent does not contest the allegation of violation as alleged in the Notice. As such, PHMSA finds a violation of 49 CFR §195.452(h)(1). 12. Item 2 will be considered by PHMSA as a prior offense in any future PHMSA enforcement action taken against Respondent. III. Item Withdrawn: 13. Item 1 - 49 CFR § 195.452(i)(4): With respect to Item 1 of the Notice, the Parties agree that this item should be withdrawn following further review of ONEOK’s emergency flow restricting device (EFRD) evaluation process. Because this item is withdrawn, it will not constitute a finding of violation for any purpose, but Respondent agrees to take the corrective actions in paragraph 14. The allegation of violation for Item 1 is withdrawn. IV. Compliance Order:#

42024036NOPV_Consent Agreement and Order_06042025_(23-264819)_text.pdf, page 714. Item 1: The Notice proposed certain compliance order actions to address the non- compliance alleged in the Notice. Following informal consultation, the Parties agreed to the following modified actions to be taken by Respondent to improve its procedures. As such, Respondent agrees to: a. Amend its procedure, NGL IMP Procedure 71 Revision 4: EFRD Evaluation (Feb. 7, 2023) (EFRD Procedure) to include a technical justification for performing EFRD scenario analyses on segments in the top 50 percent of baseline risk scores, and to include periodic reviews of that justification to ensure it remains valid. b. Amend its EFRD Procedure to explicitly document the decision-making process, including formal documentation of meetings where a decision is made to install or not install EFRDs, and to retain associated documentation for the life of the pipeline. c. Amend its EFRD Procedure to remove, or to clarify the technical basis for, the phrase “Additional risk which may be incurred by adding EFRDs,” in sections 4.2.5.2 and 4.2.5.3. d. Submit its updated EFRD Procedure and records supporting the technical justification referenced in paragraph 14.a. to the Director within 120 days after the Effective Date. e. Inform the Director whether the changes in paragraphs 14.a. through 14.d. prompted an analysis and determination to install any new EFRDs, and, if applicable, provide the associated EFRD installation schedule within 150 days after the Effective Date. 15. Item 2: The Notice proposed certain compliance order actions to address the non- compliance alleged in the Notice. Respondent did not contest the Proposed Compliance Order. As such, Respondent agrees to: a. Provide its AC interference remediation plan to the Director within 30 days after the Effective Date and complete the remediation and provide associated records of the remediation to the Director within 120 days after the Effective Date. V. Enforcement: 16. This Agreement is subject to all enforcement authorities available to PHMSA under 49 U.S.C. § 60101, et seq., and 49 CFR Part 190, including administrative civil penalties under 49 U.S.C. § 60122, of up to $272,926 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 CFR § 190.223. All work plans and associated schedules set forth or referenced in Section IV (Compliance Order) are automatically incorporated into this Agreement and are enforceable in the same manner. VI. Review and Approval Process:#

42024036NOPV_Consent Agreement and Order_06042025_(23-264819)_text.pdf, page 817. 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 in 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 Sections IV (Compliance Order) and VI (Review and Approval Process). 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 Southwest 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 CFR 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 CFR 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#

42024036NOPV_Consent Agreement and Order_06042025_(23-264819)_text.pdf, page 9this Agreement in accordance with 49 CFR Part 7, the Freedom of Information Act, 5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations and Executive Orders. X. 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. 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. XII. 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]#

42024036NOPV_Consent Agreement and Order_06042025_(23-264819)_text.pdf, page 10For ONEOK NGL Pipeline, LLC: ___________________________________ Charles Misak, Director – Asset Integrity & Engineering, Pipeline Safety Compliance ________________________ Date For PHMSA: _______________________________________ Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety ________________________ Date#

42024036NOPV_PHC Hearing Rescheduled_03182025_(23-264819)_text.pdf, page 1Official PDFDate: March 18, 2025 From: Joseph St. Peter To: File Re: Continuance of Informal Hearing in CPF No. 4-2024-036-NOPV (ONEOK NGL Pipeline, LLC) By electronic mail on March 18, 2025, Timothy O’Shea, Counsel for Southwest Region, provided a joint status update indicating that the parties are presently engaged in settlement discussions to resolve the issues raised in the Notice of Probable Violation. The parties therefore requested the scheduled April 10, 2025, hearing date be continued to the week of May 12, 2025, or later. The request is granted, and the informal hearing in this case will be held via on Thursday May 15, 2025, at 9:00 a.m. Central Daylight Time. Pre-hearing submissions under 49 CFR § 190.211(d) are due no later than May 5, 2025.#