FRONT RANGE PIPELINE, LLC. — Warning Letter

520085032W_warning letter_09152008.pdf, page 1Official PDFu.s. Department 12300 W. Dakota Ave., Suite 110 of Transportation Lakewood, CO 80228 Pipeline and Hazardous MaterialS Safety Administration WARNING LETTER CERTIFIED MAIL - RETURN RECEIPT REQUESTED September 15, 2008 Mr. John Traeger Manager of Pipelines and Terminals Front Range Pipeline, LLC 803 Highway 212 South Laurel, MT 59044 CPF 5-2008-5032W Dear Mr. Traeger: On June 10, 2008, a representative ofthe Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected your breakout tanks in Laurel, Montana. As a result ofthe inspection, it appears that Front Range Pipeline, LLC, has committed a probable violation ofthe Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violation is: 1. §195.432 Breakout tanks. (b) Each operator shall inspect the physical integrity of in-service atmospheric and low-pressure steel aboveground breakout tanks according to section 4 of API Standard 653. However, if structural conditions prevent access to the tank bottom, the bottom integrity may be assessed according to a plan included in the operations and maintenance manual under §195.402(c)(3).#

520085032W_warning letter_09152008.pdf, page 2Front Range Pipeline, LLC, did not externally inspect all of its breakout tanks at the required time interval. API Standard 653 Section 4.3.2, External Inspection, requires tanks to receive an external inspection by an Authorized Inspector at least once every 5 years. Using this guidance, Tank 95 should have received an external inspection by an Authorized Inspector in August 2007. At the time ofthis PHMSA inspection, no external inspection by an Authorized Inspector had been completed. 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 violation. 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 will result in Front Range Pipeline, LLC 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 5-2008-5032W. 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). Chris Hoidal Director, Western Region Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry PHP-500 G. Davis (#121993) 2#