CPF 42025021NOPV
CPF 42025021NOPV
party submissionOfficial PDF42025021NOPV_Operator Petition for Reconsideration (Part 1)_10162025_(23-266712).pdf#
party submissionOfficial PDF42025021NOPV_Operator Petition for Reconsideration (Part 2)_10162025_(23-266712).pdf#
party submissionOfficial PDF42025021NOPV_Operator Response to Notice (REVISED) and Request for Informal Discussion_06092025_(23-266712).pdf#
party submissionOfficial PDF42025021NOPV_Operator Response to Notice and Request for Time Extension_04012025_(23-266712).pdf#
party submissionOfficial PDF42025021NOPV_Operator Response to Notice_02142025_(23-266712).pdf#
case documentOfficial PDF42025021NOPV_PCO_01082025_(23-266712).pdf#
case documentOfficial PDF42025021NOPV_PCO_01082025_(23-266712)_text.pdf#
42025021NOPV_Final Order_09262025_(23-266712)_text.pdf, page 1Official PDFU.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Avenue, SE Washington, DC 20590 September 26, 2025 VIA ELECTRONIC MAIL TO: steve.ledbetter@hfsinclair.com Steven Ledbetter Executive Vice President, Commercial HF Sinclair Corporation 2828 N. Harwood Street Suite 1300 Dallas, TX 75201 Re: CPF No. 4-2025-021-NOPV Dear Mr. Ledbetter: Enclosed please find the Final Order issued in the above-referenced case. It makes findings of violation and specifies actions that need to be taken to comply with the pipeline safety regulations. When the terms of the compliance order are completed, as determined by the Director, Southwest Region, this enforcement action will be closed. Service of the Final Order by e-mail is effective upon the date of transmission and acknowledgement of receipt as provided under 49 CFR § 190.5. Thank you for your cooperation in this matter. Sincerely, Linda Daugherty Acting Associate Administrator for Pipeline Safety Enclosures (Final Order and NOPV) cc: Bryan Jeffrey Lethcoe, Director, Southwest Region, Office of Pipeline Safety Charles Curl, Director Pipeline Excellence and Compliance, HF Sinclair Corporation, charles.curl@hfsinclair.com#
42025021NOPV_Final Order_09262025_(23-266712)_text.pdf, page 2Dwight Brown, Pipeline Regulator Manager, HF Sinclair Corporation, dwight.brown@hfsinclair.com CONFIRMATION OF RECEIPT REQUESTED 2#
42025021NOPV_Final Order_09262025_(23-266712)_text.pdf, page 33 U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) HF Sinclair Corporation, ) CPF No. 4-2025-021-NOPV ) ) ) Respondent. ) ____________________________________) FINAL ORDER On January 8, 2025, pursuant to 49 CFR § 190.207, the Director, Southwest Region, Office of Pipeline Safety (OPS), issued a Notice of Probable Violation (Notice or NOPV) to HF Sinclair Corporation (HF Sinclair or Respondent). The Notice proposed finding that Respondent had violated the pipeline safety regulations in 49 CFR Part 195. The Notice also proposed certain measures to correct the violations. HF Sinclair responded to the Notice on February 14, 2025, one week after the 30-day response deadline stated in the Notice. In this response, Respondent did not contest the allegations of violation or corrective measures and stated that it would comply with the Proposed Compliance Order. Subsequently, on April 1, 2025, fifty-three days after the 30-day response deadline, HF Sinclair submitted a second response, wherein it disputed all the NOPV items and requested informal discussion with Southwest Region. Respondent provided a follow-up response on June 9, 2025, one hundred and twenty-two days after the 30-day response deadline, wherein it provided additional information and reiterated its request for informal discussion. Pursuant to 49 CFR § 190.208(d), failure to respond within 30 days of receipt of a NOPV constitutes a waiver of the right to contest the allegations in the Notice and authorizes the Associate Administrator, without further notice to the respondent, to find the facts as alleged in the NOPV and to issue a final order. If a respondent states that they are not contesting a Notice with a Proposed Compliance Order, the Associate Administrator is authorized to make a finding of violation and to issue a final order. See 49 CFR 190.208(b)(1). Here, Respondent did not respond within 30 days of receipt of the NOPV. Thus, HF Sinclair waived its right to contest the allegations and this waiver authorized finding the facts as alleged in the Notice and issuance of a final order. Respondent’s subsequent submissions were untimely and will not be considered. Based upon a review of all of the evidence, pursuant to section 190.213, I find Respondent violated the pipeline safety regulations listed below, as more fully described in the enclosed Notice, which is incorporated by reference:#
42025021NOPV_Final Order_09262025_(23-266712)_text.pdf, page 44 49 CFR § 195.310(b) (Item 1) ─ Respondent failed to maintain pressure test records with the required information. 49 CFR § 195.430 (Item 2) ─ Respondent failed to maintain adequate firefighting equipment at each pump station and breakout tank area. 49 CFR § 195.452(b)(5) (Item 3) ─ Respondent failed to implement and follow its integrity management program. These findings of violation will be considered prior offenses in any subsequent enforcement action taken against Respondent. Compliance Actions Pursuant to 49 U.S.C. § 60118(b) and 49 CFR § 190.217, Respondent is ordered to take the actions proposed in the enclosed Notice to correct the violations. 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. Upon completion of the ordered actions, Respondent may request that the Director close the case. Failure to comply with this Order may result in the assessment of civil penalties under 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 order are effective upon service in accordance with 49 CFR § 190.5. ___________________________________ _________________________ Linda Daugherty Date Issued Acting Associate Administrator for Pipeline Safety#
42025021NOPV_Final Order_09262025_(23-266712)_text.pdf, page 5U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 8701 S. Gessner, Suite 630 Houston TX 77074 NOTICE OF PROBABLE VIOLATION and PROPOSED COMPLIANCE ORDER VIA ELECTRONIC MAIL TO: steve.ledbetter@hfsinclair.com January 8, 2025 Steven Ledbetter Executive Vice President, Commercial HF Sinclair Corporation 2828 N. Harwood St, Suite 1300 Dallas, TX 75201 CPF 4-2025-021-NOPV Dear Mr. Ledbetter: From February 27 to May 11, 2023, of the onsite inspection, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected the pipeline facilities and records of Sinclair Transportation Company, LLC1 (Sinclair). As a result of the inspection, it is alleged that Sinclair has committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected and the probable violations are: 1. § 195.310 Records. (a) A record must be made of each pressure test required by this subpart, and the record of the latest test must be retained as long as the facility tested is in use. (b) The record required by paragraph (a) of this section must include: (1) The pressure recording charts; (2) Test instrument calibration data; 1 Sinclair Transportation Company, LLC, is a subsidiary of HF Sinclair Corporation.#
42025021NOPV_Final Order_09262025_(23-266712)_text.pdf, page 62 (3) The name of the operator, the name of the person responsible for making the test, and the name of the test company used, if any; (4) The date and time of the test; (5) The minimum test pressure; (6) The test medium; (7) A description of the facility tested and the test apparatus; (8) An explanation of any pressure discontinuities, including test failures, that appear on the pressure recording charts; (9) Where elevation differences in the section under test exceed 100 feet (30 meters), a profile of the pipeline that shows the elevation and test sites over the entire length of the test section; and (10) Temperature of the test medium or pipe during the test period. Sinclair failed to maintain pressure test records with the required information in accordance with § 195.310(b)(1)-(10). Specifically, for the 10-inch Casper Station to Poison Spider Rd. segment, Sinclair provided the hydrotest chart, which only included the segment name, minimum test pressure, and date/time of the test. 2. § 195.430 Firefighting equipment. Each operator shall maintain adequate firefighting equipment at each pump station and breakout tank area. The equipment must be- (a) In proper operating condition at all times; (b) Plainly marked so that its identity as firefighting equipment is clear; and, (c) Located so that it is easily accessible during a fire. Sinclair failed to maintain adequate firefighting equipment at each pump station and breakout tank area in accordance with § 195.430. Specifically, Sinclair failed to maintain adequate firefighting equipment at Tanks 1325 and 1326 at Bairoil Pump Station. 3. § 195.452 Pipeline integrity management in high consequence areas. (a) . . . . (b) What program and practices must operators use to manage pipeline integrity? Each operator of a pipeline covered by this section must: (1) . . . . (5) Implement and follow the program. Sinclair failed to implement and follow its integrity management program in accordance with § 195.452(b)(5). Specifically, Sinclair failed to perform spill modeling for Cheyenne Station in accordance with its procedure, Sinclair Transportation Company – Pipeline Integrity Management Program, IM-100 Volume Release & HCA Impact Procedure, section 103.1 (Rev. Jan. 24, 2022). Section 103.1 states that Sinclair will perform spill modeling on facilities with breakout tanks. Cheyenne Station has three breakout tanks, but Sinclair failed to perform the requisite spill modeling.#
42025021NOPV_Final Order_09262025_(23-266712)_text.pdf, page 73 Proposed Civil Penalty Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed $266,015 per violation per day the violation persists, up to a maximum of $2,660,135 for a related series of violations. For violation occurring on or after January 6, 2023 and before December 28, 2023, the maximum penalty may not exceed $257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a related series of violations. For violation occurring on or after March 21, 2022 and before January 6, 2023, the maximum penalty may not 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 violation 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 violation 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 violation 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. We have reviewed the circumstances and supporting documents involved in this case, and have decided not to propose a civil penalty assessment at this time. Proposed Compliance Order With respect to Items 1, 2, and 3 pursuant to 49 U.S.C. § 60118(b), the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to Sinclair Transportation Company. Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice. Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Enforcement Proceedings. Please refer to this document and note the response options. All material you 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). Following the receipt of this Notice, you have 30 days to respond as described in the enclosed Response Options. If you do not respond within 30 days of receipt of this Notice, this constitutes 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. If you are responding to this Notice, we propose that you submit your correspondence to my office within 30 days from receipt of this Notice. The Region Director may extend the period for responding upon a written request timely submitted demonstrating good cause for an extension.#
42025021NOPV_Final Order_09262025_(23-266712)_text.pdf, page 84 In your correspondence on this matter, please refer to CPF 4-2024-021-NOPV and for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Bryan Lethcoe Director, Southwest Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration Enclosure: Proposed Compliance Order Response Options for Pipeline Operators in Enforcement Proceedings cc: Charles Curl, Director Pipeline Excellence and Compliance, charles.curl@hfsinclair.com Dwight Brown, Pipeline Regulator Manager, dwight.brown@hfsinclair.com#
42025021NOPV_Final Order_09262025_(23-266712)_text.pdf, page 95 PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Sinclair Transportation Company, LLC (Sinclair), a Compliance Order incorporating the following remedial requirements to ensure the compliance of Sinclair with the pipeline safety regulations: A. In regard to Item 1 of the Notice pertaining to Sinclair’s failure to maintain pressure test records with the required information in accordance with § 195.310(b)(1)-(10), Sinclair must complete a pressure test for Casper Station to Poison Spider Rd segment and provide pressure test records that includes the information required by § 195.310(b)(1)-(10) to the Director, Southwest Region, PHMSA within 90 days of receipt of the Final Order. B. In regard to Item 2 of the Notice pertaining to Sinclair’s failure to maintain adequate firefighting equipment at each pump station and breakout tank area in accordance with § 195.430, Sinclair must install a fire protection system on Tanks 1325 and 1326 and provide records of the installed system to the Director, Southwest Region, PHMSA within 90 days of receipt of the Final Order. C. In regard to Item 3 of the Notice pertaining to Sinclair’s failure to implement and follow its integrity management program in accordance with § 195.452(b)(5), Sinclair must perform overland spread spill modeling for Cheyenne Station and provide records of the modeling to the Director, Southwest Region, PHMSA within 90 days of receipt of the Final Order. D. It is requested (not mandated) that Sinclair Transportation Company maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Bryan Lethcoe, 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.#
42025021NOPV_Consent Agreement and Order_03062026_(23-266712)_text.pdf, page 1Official PDFU.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Avenue, SE Washington, DC 20590 March 6, 2026 VIA ELECTRONIC MAIL TO: steve.ledbetter@hfsinclair.com Steven Ledbetter Executive Vice President, Commercial HF Sinclair Corporation 2828 N. Harwood Street Suite 1300 Dallas, TX 75201 CPF No. 4-2025-021-NOPV Dear Mr. Ledbetter: Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and HF Sinclair Corporation, which was executed on March 3, 2026. 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, Linda Daugherty Acting Associate Administrator for Pipeline Safety Enclosure: Consent Order and Consent Agreement cc: Charles Curl, Director Pipeline Excellence and Compliance, HF Sinclair Corporation, Charles.curl@hfsinclair.com Dwight Brown, Pipeline Regulatory Manager, HF Sinclair Corporation, Dwight.brown@hfsinclair.com Richard Alonso, Counsel, HF Sinclair Corporation, rich.alonso@hfsinclair.com James Curry, outside counsel for HF Sinclair Corporation, jcurry@babstcalland.com Lee Banse, outside counsel for HF Sinclair Corporation, lbanse@babstcalland.com CONFIRMATION OF RECEIPT REQUESTED#
42025021NOPV_Consent Agreement and Order_03062026_(23-266712)_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 ) HF Sinclair Corporation, ) CPF No. 4-2025-021-NOPV ) ) ) Respondent. ) ____________________________________) CONSENT ORDER By letter dated January 8, 2025, 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 HF Sinclair Corporation (HF Sinclair or Respondent). HF Sinclair responded to the Notice by letter dated February 14, 2025 (Response). Respondent did not contest the alleged violations or the proposed compliance order. On April 1, 2025, Respondent submitted a second response, in which it contested Items 1-3 and the proposed compliance order, requested an additional 90 days to respond to the Notice, and requested to meet with PHMSA regarding the findings. On June 9, 2025, Respondent submitted a third response, providing additional reasons contesting the items described in the Notice. On September 26, 2025, the Associate Administrator issued to Respondent a Final Order including the violations and proposed compliance order alleged in the Notice, finding that Respondent had waived its right to contest the allegation. On October 16, 2025, Respondent filed a petition for reconsideration of the Final Order. HF Sinclair also requested to meet informally with PHMSA to discuss the matters raised in its petition. Respondent and PHMSA (the Parties) subsequently met on November 21, 2025. As a result of those discussions, the Parties have agreed to a Consent Agreement by which PHMSA affirms the findings of violations for two of the Items alleged in the Notice, withdraws one of the findings of violation from the Final Order, and Respondent agrees to complete certain compliance actions. Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this Consent Order issued pursuant to section 190.219. HF Sinclair 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.#
42025021NOPV_Consent Agreement and Order_03062026_(23-266712)_text.pdf, page 3The terms and conditions of this Consent Order are effective upon service in accordance with 49 CFR § 190.5. ______________________ ______________________ Linda Daugherty Date Issued Acting Associate Administrator for Pipeline Safety#
42025021NOPV_Consent Agreement and Order_03062026_(23-266712)_text.pdf, page 4Docusign Envelope ID: 39BC4857-F4CB-466E-ADA7-CE155850E530 Page 1 U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) HF Sinclair Corporation, ) CPF No. 4-2025-021-NOPV ) ) ) Respondent. ) ____________________________________) CONSENT AGREEMENT From February 27 through May 11, 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 the facilities and records of HF Sinclair Corporation (HF Sinclair or Respondent) in Wyoming. The inspection covered 540 miles of pipeline carrying crude oil products between Sinclair Refinery, Casper Refinery, Guernsey Tank Farm, and Cheyenne Station. As a result of the inspection, the Director, Southwest Region, OPS (Director), issued to Respondent, by letter dated January 8, 2025, a Notice of Probable Violation and Proposed Compliance Order (Notice). In accordance with 49 CFR § 190.207, the Notice proposed finding that HF Sinclair committed three violations of 49 CFR Part 195 (Items 1 – 3), and proposed ordering Respondent to take certain measures to correct the alleged violations. HF Sinclair responded to the Notice by letter dated February 14, 2025 (Response). Respondent did not contest the alleged violations or the proposed compliance order. On April 1, 2025, Respondent submitted a second response, in which it contested Items 1-3 and the proposed compliance order, requested an additional 90 days to respond to the Notice, and requested to meet with the Director regarding the Notice. On June 9, 2025, Respondent submitted a third response, providing additional reasons contesting the items described in the Notice. On September 26, 2025, the Associate Administrator issued to Respondent a Final Order including the violations and proposed compliance order alleged in the Notice, finding that Respondent had waived its right to contest the allegation. On October 16, 2025, Respondent filed a petition for reconsideration of the Final Order. The Director and Respondent (the Parties) subsequently met to discuss the issues raised in the petition for reconsideration. As a result of those discussions and as explained in more detail below, the Parties have agreed to a Consent Agreement by which PHMSA affirms the findings of violations for two of the Items alleged in the Notice, withdraws one of the findings of violation#
42025021NOPV_Consent Agreement and Order_03062026_(23-266712)_text.pdf, page 5Docusign Envelope ID: 39BC4857-F4CB-466E-ADA7-CE155850E530 Page 2 from the Final Order, and 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 1. Respondent acknowledges that as the operator of the pipeline facilities subject to the Notice and Final Order, 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 and Final Order state 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 petition for reconsideration regarding the Final Order. 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 and Final Order. 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#
42025021NOPV_Consent Agreement and Order_03062026_(23-266712)_text.pdf, page 6Docusign Envelope ID: 39BC4857-F4CB-466E-ADA7-CE155850E530 Page 3 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. 8. 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. Findings of Violation: 11. Item 2 - 49 CFR § 195.430: The Final Order found that HF Sinclair failed to maintain adequate firefighting equipment at each pump station and breakout tank area. Specifically, the Final Order found that HF Sinclair failed to maintain adequate firefighting equipment at Tanks 1325 and 1326 at Bairoil Pump Station. HF Sinclair does not contest the finding of violation in the Final Order. As such, PHMSA finds a violation of 49 CFR § 195.430. 12. Item 3 - 49 CFR § 195.452(b)(5): The Final Order found that HF Sinclair failed to implement and follow its integrity management program. Specifically, the Final Order found that HF Sinclair failed to perform spill modeling for three out-of-service breakout tanks at the Cheyenne Station in accordance with its procedure. HF Sinclair does not contest the finding of violation in the Final Order. As such, PHMSA finds a violation of 49 CFR § 195.452(b)(5). 13. Items 2 and 3 will be considered by PHMSA as prior offenses in any future PHMSA enforcement action taken against Respondent.#
42025021NOPV_Consent Agreement and Order_03062026_(23-266712)_text.pdf, page 7Docusign Envelope ID: 39BC4857-F4CB-466E-ADA7-CE155850E530 Page 4 III. Item Withdrawn: 14. Item 1 - CFR § 195.310(b)(1)-(10): With respect to Item 1 of the Final Order, the Parties agree that this Item should be withdrawn following review of additional documentation provided by Respondent regarding its compliance with the applicable regulation. 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 16. The finding of violation for Item 1 is withdrawn. IV. Compliance Order: 15. In paragraphs 16, 17, 18 of this Consent Agreement, the term Sinclair Assets shall be defined as the hazardous liquids facilities covered under the notice of divestiture filed by the Sinclair Transportation Company with the National Registry of Operators on April 4, 2022 that provided notice of the transfer of pipeline facilities to Holly Energy Partners-Operating, L.P. 16. Item 1: The Final Order included certain compliance order actions related to Item 1. Following informal consultation, the Parties agreed to the following modified actions to be taken by Respondent. As such, Respondent agrees to undertake the following corrective measures: a. Within 60 days of issuance of the Consent Order, HF Sinclair must conduct a review of its classifications of the Sinclair Assets and ensure that each system is correctly classified as intrastate or interstate in accordance with 49 CFR Part 195 Appendix A. Within 60 days of issuance of the Consent Order, HF Sinclair must submit any updates related to the intrastate or interstate classification of the relevant facilities to the National Pipeline Mapping System (NPMS). HF Sinclair must notify the Director when the review is complete, and provide an electronic map (in GIS format) showing interstate and intrastate pipeline status. 17. Item 2: The Final Order included certain compliance order actions to address the non-compliance found under Item 2. Following informal consultation, the Parties agreed to the following modified actions to be taken by Respondent. As such, Respondent agrees to undertake the following corrective measures: a. Within 60 days of issuance of the Consent Order, HF Sinclair will conduct a refresher training of its existing procedures for operators for remote facilities in the Sinclair Assets that do not have fixed firewater systems and locations where one of the fire response strategies may be a controlled burn-out. HF Sinclair must provide records to the Director of the refresher training. b. Within 240 days of issuance of the Consent Order, HF Sinclair will conduct a tabletop drill to train operators on the execution of its fire response plan for remote facilities in the Sinclair Assets that do not have fixed firewater systems and locations where one of the fire response strategies may be a controlled burn-out. HF Sinclair will invite local first responders to participate in the tabletop drill and provide notification to#
42025021NOPV_Consent Agreement and Order_03062026_(23-266712)_text.pdf, page 8Docusign Envelope ID: 39BC4857-F4CB-466E-ADA7-CE155850E530 Page 5 PHMSA, at least 60 days before the expected date of the drill, to allow for PHMSA personnel to attend and observe the drill. c. Within 60 days of completion of the tabletop drill, HF Sinclair will provide the Director updated fire response procedures and training materials for facilities that do not have fixed firewater systems and locations where one of the fire response strategies may be a controlled burn-out. HF Sinclair will provide notification to local first responders to permit them to participate in future drills. 18. Item 3: The Final Order included certain compliance order actions to address the non-compliance found under Item 3. Following informal consultation, the Parties agreed to the following modified actions to be taken by Respondent. As such, Respondent agrees to undertake the following corrective measures: a. Within 60 days of the issuance of the Consent Order, HF Sinclair must provide the Director records confirming the integration into its integrity management program of each segment on the Sinclair Assets for which IM integration is required per 49 CFR Part 195. b. Within 60 days of the issuance of the Consent Order, HF Sinclair shall submit to the Director draft revisions to its integrity management plan requiring verification that out- of-service pipelines and breakout tanks are confirmed in compliance with all applicable requirements of its integrity management plan prior to return to service. c. Within 60 days of receiving any feedback or proposed revisions from the Director, HF Sinclair will finalize and submit to the Director the updated integrity management plan sections related to out-of-service pipelines and breakout tanks. V. Enforcement: 19. 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: 20. 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#
42025021NOPV_Consent Agreement and Order_03062026_(23-266712)_text.pdf, page 9Docusign Envelope ID: 39BC4857-F4CB-466E-ADA7-CE155850E530 Page 6 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: 21. 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: 22. 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: 23. 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 this 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: 24. 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.#
42025021NOPV_Consent Agreement and Order_03062026_(23-266712)_text.pdf, page 10Docusign Envelope ID: 39BC4857-F4CB-466E-ADA7-CE155850E530 Page 7 XI. Termination: 25. 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: 26. 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. 27. The Parties hereby agree to all findings, conditions, and terms of this Agreement. [Signature Lines on Following Page]#
42025021NOPV_Consent Agreement and Order_03062026_(23-266712)_text.pdf, page 11Docusign Envelope ID: 39BC4857-F4CB-466E-ADA7-CE155850E530 For HF Sinclair Corp.: ___________________________________ John Paris, Vice President, Midstream Operations ________________________ Date For PHMSA: ________________________________________ Director, Southwest Region, Office of Pipeline Safety ________________________ Date Page 8#
This material provides agency context. It does not replace binding regulatory text, and its legal effect depends on the underlying authority and facts.