XTO ENERGY INC — Warning Letter

520080019w_warning letter_08202008_text.pdf, page 1Official PDFU S. DePGrlment of Tl'G rtsporfGtloll Pmpellmne and Hazardous Matermalls Safety AdmmnistmHon 12300 I Dakota Ave, Suite 110 Lakewood, CO 80228 WA~lXG EKTTKR August 20, 2008 Mr Kyle Hammond Vice President, Operations XTO Energy 810 Houston Street Fort Woith, TX 76102 CPF 5-2008-007 9M Dear Mr. Hammond On May 6, 2008, a representative of the Pipehne and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected your records and facihties in Kenai, Alaska. As a result of the inspection, it appears that you have committed a probable violation of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violation is' (a) Each cathodic protection system required by this subpart must provide a level of cathodic protection that comphes with one or moi e of the applicable criteria contained in Appendix jjt of this part. XTO failed to provide a level of cathodic protection (CP) that comphes with one or more of the applicable criteria contained in Appendix D Inadequate CP levels existed on XTO's onshore buried 2" service gas pipehne during 2005, 2006, and 2007, at the following test stations.#

520080019w_warning letter_08202008_text.pdf, page 25 North of llseis ~ s Risers, W side warehouse» s Service gas riser at Enstar manifold~ ~ XTO location descriptions on CP records. Under 49 United States Code, ( 60122, you are subject to a civil penalty not to exceed $100, 000 for each violation for each day the violation persists up to a maximum of $1, 000, 000 for any related series of violations We have reviewed the circumstances and supportmg 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(s) identified in this letter. Failure to do so will result in XTO Energy being subject to additional enforcement actloll. No reply to this letter is required If you choose to reply, in your correspondence please refer to CPF 5-2W8-W19W. Be advised that all material you submit in response to this enforcement action is subject to being made pubhcly available. If you beheve that any portion of your responsive material quahfies 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 potions you beheve quahfy for confidential treatment redacted and an explanation of why you beheve the redacted information qualifies for confidential treatment under 5 U. S C. 552(b) Sincerely, Chris Hoidal Director, Western Region Pipehne and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry PHP-500 J. Strawn (¹120684)#