NORTHERN BORDER PIPELINE COMPANY — Warning Letter

520080023w_warning letter_11252008_text.pdf, page 1Official PDFU, S. Department of Transportation Pipelliine and Hdzdirdous Mater iidlls Safety Admilriiils)mNon 12300 W Dakota Ave, Suite 110 Lakewood, CO 80228 WA~IXG I. KITER November 25, 2008 Mr Jim Krause Northern Border Regional Manager — US Field Operations Northern Border Pipehne Company 13710 FNB Parkway Omaha, NE 68124 iCPF 5-2008-0023M Dear Mr. Krause On July 14-17, 2008, a representative of the Pipehne and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected your Northern Border pipeline facihties in Montana As a result of the inspection, it appears that you have committed probable violations of the Pipehne Safety Regulations, Title 49, Code of Federal Regulations. The items mspected and the probable violations are. Northern Border Pipehne exceeded the interval allowed for testing and inspecting four (4) mam hne block valves. These valves were inspected on May 3, 2006, and then not again until dates ranging between October 22, 2007 and November 6, 2007 This exceeded the 15-month maximum time interval#

520080023w_warning letter_11252008_text.pdf, page 2$195. 479 Atmospheriic corrosion control; Gene& al. (c) Kxcepit poi tions of piipehnes in offshore spIlash zones or soil-to-air interfaces, the operator need not piotect from atmospheric corrosion any pipeline for which the operator demonsitii ates by test, investigation, or experience appropi iiate to the environment of the pipeline that corrosiion will— (1) Only be a liight surface oxide; or (2) Not affect the safe opei ation of the piipehne before ithe next scheduled inspection. During the field mspection, our inspector noted that the pipehne at both Valves 9 and 11 displayed disbonded tape coatmg at the soil-to-air interfaces Under 49 Umted 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 supportnig 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 items identified m this letter. Failure to do so will result in Northern Border Pipehne Company being sub]ect to additional enforcement action No reply to this letter is required If you choose to reply, ni your correspondence please refer to CPF 5-2008-0023M. 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 portions you believe quahfy for confidential treatment redacted and an explanation of why you beheve the redacted mformation quahfies for confidential treatment under 5 U. S. C 552(b) Smcerely, Cl i oida Director, Western Region Pipehne and Hazardous Materials Safety Administration cc PHP-60 Comphance Registry PHP-500 G. Davis /f120772, 0122182)#