SFPP, LP — Warning Letter

520085046w_warning letter_12032008_text.pdf, page 1Official PDFU. S. Depattment of Transportation Pilpellilne and Haxairdous Maferilalls Safety Admilnilsfrafiion 12300 W Dakota Ave, Suite 110 lakewood, CQ 80228 WA~IXG KKTTKR December 3, 2008 Mr Ron McClain Vice President — Operations k Engmeering Product Pipehnes Kinder Morgan Energy Partners, L. P 500 Dallas Street, Suite 100 Houston, TX 77002 CPF 5-2008-5046M Dear Mr McClain: On October 2, 2007, Kinder Morgan Energy Partners, L P (KMEP) experienced a release from their six-inch diameter pipehne on Line Section 13 (LS-13) at Galletti Way, Washoe County, Nevada A representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, conducted an mvestigation into the cause of the release 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 item inspected and the probable violation is (e) Emergencies. The manual required by paragi aph (a) of this section must iinclude procedures for the following to provide safety when an emergency condition occurs;#

520085046w_warning letter_12032008_text.pdf, page 2The KMEP SCADA controller did not correctly follow their emergency procedures to close the motor operated valve (MOV). The controller dhd not promptly command the valve to close following their October 2, 2007 release on LS-13 While this failure to follow emergency response procedures did not appear to have contributed to the amount of product spilled, this improper action could have resulted in a larger release under different conditions 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 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 items identified in this letter Failure to do so will result in the Kinder Morgan Energy Partners, L P. being subject to additional enforcement action No reply to this letter is required If you choose to reply, in your correspondence please refer to CPP 5-2M8-5046M 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 beheve quahfy 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) Sincerely, Chris Hoidal Director, Western Region Pipehne and Hazardous Materials Safety Administration cc PHP-60 Comphance Registry PHP-500 H. Nguyen (¹120035)#