TRANSCOLORADO GAS TRANSMISSION COMPANY LLC — Warning Letter

520090010W_warning letter_01292009_text.pdf, page 1Official PDFWARNING LETTER CERTIFIED MAIL - RETURN RECEIPT REQUESTED January 29, 2009 Mr. Dwayne Burton, V.P. Kinder Morgan 500 Dallas Street, Suite 1000 Houston, TX 77002 CPF 5-2009-0010W Dear Mr. Burton: On June 9-12, 2008, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected records pertaining to the operation and maintenance of your TransColorado pipeline system in Grand Junction, Colorado. As a result of the inspection, it appears that you have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violations are: 1. §192.731 Compressor stations: Inspection and testing of relief devices. (c) Each remote control shutdown device must be inspected and tested at intervals not exceeding 15 months, but at least once each calendar year, to determine that it functions properly. Annual Emergency Shutdown Device (ESD) testing exceeded the maximum 15-month interval allowed by §192.731(c) for Olathe Compressor Station between 3/15/2006 and 9/26/2007.#

520090010W_warning letter_01292009_text.pdf, page 22. §192.736 Compressor stations: Gas detection. (c) Each gas detection and alarm system required by this section must be maintained to function properly. The maintenance must include performance tests. The second quarter flame detection and gas detection tests required by §192.736(c) were missed during 2006 at the Olathe Compressor Station. 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 Kinder Morgan 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 5-2009-0010W. 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). Sincerely, Chris Hoidal Director, Western Region Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry 2#