PANTHER OPERATING COMPANY, LLC — Notice of Amendment

52021007NOA_Op Resp to Notice and Req Time Extension_03182021_(20-172190).pdf, page 1Official PDFTHIRD' COAST March 18, 2021 MIDSTREAM Mr. Dustin B. Hubbard Director, Wester Region Pipeline and Hazardous Materials Safety Administration 12300 W. Dakota Ave., Suite 110 Lakewood, CO 80228 Re: CPF 5-2021-007-NOA Dear Mr. Hubbard, Third Coast Midstream, LLC (Third Coast) is in receipt of your Notice of Amendment dated March 4, 2021 (Notice). As described in the Notice, personnel of the Pipeline and Hazardous Materials Safety Administration (PHMSA) performed a virtual inspection of the Third Coast control rooms located in Houston, Texas and Texas City, Texas where selected items were found to be inadequately described and/or executed in Third Coast's control room management procedures (Procedures), communication plan, and training program. Third Coast does not contest these findings and is currently working to remedy these findings as Third Coast is committed to ensuring full compliance with all applicable regulations as documented in the Notice. Please find Third Coast's response to the findings excerpted from the Notice below: 1. PHMSA WARNING: Third Coast must revise their Procedures to define the process controllers must follow when transferring to a backup control room and include in the Procedures a formalized process for transferring responsibilities to another location, including shift-change forms or other documentation. THIRD COAST RESPONSE: Third Coast will revise the Procedures in question to better define the roles and responsibilities of a controller during normal, abnormal, and emergency operating conditions. Third Coast will also revise the Procedures in question to better define a controller's authority and responsibility Procedures in question to include transferring operations to another location making sure to include a formal to make decisions and take actions during normal operations. Additionally, Third Coast will revise the transfer of responsibilities, shift-change forms and/or other documentation, and the responsibilities of all personnel involved. 2. PHMSA WARNING: Third Coast must revise their Procedures to address replacement controllers, including when a controller must leave without a replacement, supervisory duties to contact replacements, and situations in which replacement controllers are needed on an urgent basis. THIRD COAST RESPONSE: Third Coast will revise the Procedures in question to better define the roles and responsibilities during normal, abnormal, and emergency operating conditions. Third Coast will also revise the Procedures in question to include the shift-change handover process and documentation in use. Third Coast will include in their revision situations where the on-duty controller may have to leave the control room and information required to exchange and understand prior to a relief controller taking control of the console. Third Coast will update the Procedures in question to include contacting a supervisor to find a replacement controller to ensure that a controller's hours of service are considered in selecting the relief controller. Third Coast will also include in their revision, a process for oncoming controllers to report their fitness for duty, and if a controller is not fit for duty, the method by which this is reported and documented. 1501 McKinney St., Suite 800, Houston, TX 77010 • Office: (346) 241-3400 Fax: (713) 815-3998 www.3CMidstream.com#

52021007NOA_Op Resp to Notice and Req Time Extension_03182021_(20-172190).pdf, page 23. PHMSA WARNING: Third Coast must revise their Procedures to adequately define the roles, responsibilities, and qualifications for each person with the authority to direct or supersede the technical actions of a controller, and how that authority would be implemented and documented. THIRD COAST RESPONSE: Third Coast will revise the Procedures in question to better define the roles and responsibilities during normal, abnormal, and emergency operating conditions. Third Coast will revise the roles and responsibilities detailed in CRM-002, Section 2.6, Authority to Direct or Supersede a Controller's Actions, as it was understood to be contradictory to statements made by the controller being able to control either console. Third Coast will revise the Procedure in question to clearly define how those with authority to supersede or direct a controller's actions would execute and document this occurrence. 4. PHMSA WARNING: Third Coast must revise the communication plan to include all critical locations that would require manual operation if a loss of communications occurred. THIRD COAST RESPONSE: Third Coast will revise the communication plan in question regarding the verification, testing, and documentation of the internal communication plan. Additionally, Third Coast will revise the communication plan to identify the critical assets and locations to deploy personnel to for manual 5. PHMSA WARNING: Third Coast must revise their Procedures to clearly provide how controllers will be trained in fatigue mitigation strategies and how off-duty activities contribute to fatigue. THIRD COAST RESPONSE: Third Coast will revise the Procedures in question to further clarify how controllers will be trained in fatigue mitigation strategies, including information on how off-duty activities contribute to fatigue. 6. PHMSA WARNING: Third Coast must revise their training program to clearly describe the process for training controllers in each phase identified, develop and carry out oral examinations to ensure consistency in training and evaluation, and develop pass/fail criteria for each phase of training. Additionally, Third Coast must revise their procedure for reviewing the training program content (including fatigue mitigation education) to determine effectiveness, metrics used for the review, and identify any improvements necessary or document no improvements were needed. THIRD COAST RESPONSE: Third Coast will revise their training program in question to clarify included references to two different final evaluations as documented in CRM-008: Training, Sections 8.3.4 and 8.3.5. Additionally, Third Coast will update CRM-APP-008: Training in accordance with Operator Qualification (OQ) evaluation requirements. Third Coast will also revise CRM-APP-008: Training, Section 8.3.5, Final Evaluation, to include measures to ensure it is performed effectively and consistently. Third scores that should be achieved during training. Third Coast will revise their training program in question to Coast will also revise training Phases I/II/III to better identify the pass/fail criteria and include the passing include the review cycle of the training program, which will be once every calendar year, not to exceed fifteen months, and Third Coast will document how the training program is reviewed and how that review is documented. Third Coast will also revise an incorrect reference to document CRM-APP-801: Review of Controller Training that includes the wrong document name. Third Coast will revise document CRM-004: Fatigue Management Rev. 10, Revised August 14, 2019, Section 4.8: Fatigue Management Strategies to clearly identify how Third Coast will perform a review of the Fatigue Mitigation Training material and which portions of the training material will be reviewed. Additionally, the process of reviewing CRM-004: Fatigue Management Rev. 10, Revised August 14, 2019, will be described and review documentation and measures will be identified. 1501 McKinney St., Suite 800, Houston, TX 77010 • Office: (346) 241-3400 Fax: (713) 815-3998 www.3CMidstream.com#

52021007NOA_Op Resp to Notice and Req Time Extension_03182021_(20-172190).pdf, page 37. PHMSA WARNING: Third Coast must revise their training procedures to address how controllers will be trained on abnormal operating conditions that are likely to occur simultaneously or in sequence. THIRD COAST RESPONSE: Third Coast will revise the training procedures in question to include descriptions of Abnormal Operating Conditions (AOC) that may occur simultaneously or in sequence. Third Coast will revise CRM-008: Training, Section 8.2 Program, to better document how the controllers are to be trained. Third Coast will also revise the training procedures in question to include information regarding the method that controllers are trained regarding AOC that may occur. 8. PHMSA WARNING: Third Coast must revise their training procedures to address how controllers will be trained on their responsibilities for communication under the operator's emergency response procedures. THIRD COAST RESPONSE: Third Coast will revise the training procedures in question to better describe the controller's training on their responsibilities for communication during an emergency response. on their responsibilities for communication under the Third Coast Midstream emergency response Third Coast will revise CRM-008: Training, Section 8.2 Program, to identify how controllers will be trained procedures. 9. PHMSA WARNING: Third Coast must revise their training procedures to address how controllers will be trained for a working knowledge of the pipeline system, especially during the development of abnormal operating conditions. THIRD COAST RESPONSE: Third Coast will revise the training procedures in question to include training on AOC and the identification of and response to a developing AOC. Third Coast will revise CRM- 008: Training, Section 8.2 Program, to include training that will provide a working knowledge of the pipeline system with emphasis on the development of AOC. 10. PHMSA WARNING: Third Coast must revise their Procedure to create a means of documenting why a deviation was necessary for the safe operation of the pipeline facility. THIRD COAST RESPONSE: Third Coast will revise the Procedures and supporting document in question, CRM-APP-101, Control Room Management Deviation Form, to include, as part of the process, a method for documenting why deviations from the Procedure were necessary for the safe operations of the pipeline facility. Third Coast requests a period of 120 days from the date the Notice was received to remedy the above umerated findings in accordance with the responses provided herein. Since the time of PHMSA's origin dit conducted in July 2020, Third Coast has divested the asset that was the primary source for PHMSA findings in the Notice, and Third Coast has also hired a new Manager of CRM and Alarms. Thank you for your consideration of Third Coast's responses to the Notice. Please reach out to our leadership with any questions or concerns you may have regarding these responses. Sincerely, Matthew W. Rowland President & CEO Third Coast Midstream, LLC 1501 McKinney St., Suite 800, Houston, TX 77010 • Office: (346) 241-3400 Fax: (713) 815-3998 www.3CMidstream.com#

52021007NOA_Closure Letter_12192022_(20-172190)_text.pdf, page 1Official PDFVIA E-MAIL TO MR. MATTHEW ROWLAND December 19, 2022 Mr. Matthew Rowland CEO Lighthouse Midstream Services 1501 McKinney St., Suite 800 Houston, TX 77010 CPF 5-2021-007-NOA Closure Letter Dear Mr. Rowland: During the week of July 13 through 17, 2020, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), performed a virtual inspection of the Third Coast Midstream, LLC (Third Coast, and now Lighthouse Midstream Services), control rooms located in Houston and Texas City, Texas. This inspection included review of the company’s procedures and records, and virtual observations of control room operations associated with the Control Room Management Program. As a result of the inspection, Third Coast was issued a Notice of Amendment on March 4, 2021, which proposed amendment of your procedures. After requesting and receiving an extension, Third Coast submitted amended procedures on July 1, 2021, to which an inadequate response letter was issued on November 12, 2021. Third Coast submitted further amended procedures on April 11, 2022, via email. My staff has reviewed the amended procedures, and it appears that the inadequacies outlined in this Notice of Amendment have been corrected. This letter is to inform you no further action is necessary and this case is now closed. Thank you for your cooperation. Sincerely, Dustin Hubbard Director, Western Region Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry PHP-500 D. Fehling (#20-172190)#

52021007NOA_Notice of Amendment_03042021_(20-172190)_text.pdf, page 1Official PDFNOTICE OF AMENDMENT VIA E-MAIL TO MR. MATTHEW ROWLAND March 4, 2021 Mr. Matthew Rowland CEO Third Coast Midstream, LLC 1501 McKinney, Suite 800 Houston, TX 77010 CPF 5-2021-007-NOA Dear Mr. Rowland: During the week of July 13 through 17, 2020, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), performed a virtual inspection of the Third Coast Midstream, LLC (Third Coast), control rooms located in Houston and Texas City, Texas. The inspection covered procedures, records, and virtual observations. Based on the inspection, PHMSA has identified the apparent inadequacies found within Third Coast Midstream’s plans or procedures, as described below: 1. § 195.446 - Control room management. (b) Roles and responsibilities. Each operator must define the roles and responsibilities of a controller during normal, abnormal, and emergency operating conditions. To provide for a controller's prompt and appropriate response to operating conditions, an operator must define each of the following: (1) A controller's authority and responsibility to make decisions and take actions during normal operations;#

52021007NOA_Notice of Amendment_03042021_(20-172190)_text.pdf, page 2The Third Coast Control Room Management Procedures do not define the roles and responsibilities of a controller during normal, abnormal, and emergency operating conditions. Specifically, the Procedures do not define a controller’s authority and responsibility to make decisions and take actions during normal operations. In CRM-003, Section 3.3, Business Continuity Center, the process does not define which controller must initiate a planned transfer to a backup control room. Additionally, transferring operations to another location must include a formal transfer of responsibilities, including shift-change forms or other documentation, however, the Procedures do not define the responsibilities during such a transfer or include corresponding documentation. Third Coast must revise their Procedures to define the process controllers must follow when transferring to a backup control room and include in the Procedures a formalized process for transferring responsibilities to another location, including shift-change forms or other documentation. 2. § 195.446 - Control room management. (b) Roles and responsibilities. Each operator must define the roles and responsibilities of a controller during normal, abnormal, and emergency operating conditions. To provide for a controller's prompt and appropriate response to operating conditions, an operator must define each of the following: (1) … (4) A method of recording controller shift-changes and any hand-over of responsibility between controllers. The Third Coast Control Room Management Procedures do not define the roles and responsibilities of a controller during normal, abnormal, and emergency operating conditions. Specifically, the Procedures do not include a method of recording any hand-over of responsibility between controllers. The CRM-003, Section 3.6.3, Alternate Shift Change Procedure, does not include procedures regarding situations when a controller must leave the control room and before a replacement controller can begin. The Procedures also do not include the process for contacting a supervisor when a replacement controller is needed. The Procedures require controllers to call other controllers to find a replacement, which may or may not take hours of service into consideration, which could create an hours of service deviation. Finally, the Procedure does not address the situation of an oncoming controller reporting they are unable to start their shift without finding a replacement controller. The Procedure states that operators will follow internal communication plan if the situation arises; however, the internal communication plan covers only communication outages or SCADA outages and not replacement controllers. Third Coast must revise their Procedures to address replacement controllers, including when a controller must leave without a replacement, supervisory duties to contact replacements, and situations in which replacement controllers are needed on an urgent basis. 2#

52021007NOA_Notice of Amendment_03042021_(20-172190)_text.pdf, page 33. § 195.446 - Control room management. (b) Roles and responsibilities. Each operator must define the roles and responsibilities of a controller during normal, abnormal, and emergency operating conditions. To provide for a controller's prompt and appropriate response to operating conditions, an operator must define each of the following: (1) … (5) The roles, responsibilities and qualifications of others who have the authority to direct or supersede the specific technical actions of controllers. The Third Coast Control Room Management Procedures do not define the roles and responsibilities of a controller during normal, abnormal, and emergency operating conditions. Specifically, the Procedures do not define the roles, responsibilities and qualifications of others who have the authority to direct or supersede the specific technical actions of controllers. Section 2.6, Authority to Direct or Supersede a Controller’s Actions, of CRM-002 states that only supervisors and lead controllers qualified for respective consoles can direct or supersede the technical actions of controllers. However, the Procedure also states "...such individuals would not necessarily need to be broadly qualified as a controller." During the inspection, the operator verbally stated that supervisors are not qualified on both consoles. The Procedure is contradictory and does not address the roles, responsibilities, and qualifications of the supervisors with the authority to direct or supersede the specific technical actions of controllers on each console. The procedure also fails to clearly state how those with the authority to direct or supersede would implement and document that authority. Third Coast must revise their Procedures to adequately define the roles, responsibilities, and qualifications for each person with the authority to direct or supersede the technical actions of a controller, and how that authority would be implemented and documented. 4. § 195.446 - Control room management. (c) Provide adequate information. Each operator must provide its controllers with the information, tools, processes and procedures necessary for the controllers to carry out the roles and responsibilities the operator has defined by performing each of the following: (1) … (3) Test and verify an internal communication plan to provide adequate means for manual operation of the pipeline safely, at least once each calendar year, but at intervals not to exceed 15 months; Third Coast does not provide its controllers with the information, tools, processes and procedures necessary for the controllers to carry out the roles and responsibilities the operator has defined. Specifically, Third Coast did not verify the internal communication plan provides adequate 3#

52021007NOA_Notice of Amendment_03042021_(20-172190)_text.pdf, page 4means for manual operation of the pipeline safety. The communications plan does not identify the critical locations that would require manual operations if a loss of communications occurred. The communication plan, therefore, is not adequate for manual operation of the pipeline safely. Third Coast must revise the communication plan to include all critical locations that would require manual operation if a loss of communications occurred. 5. § 195.446 - Control room management. (d) Fatigue mitigation. Each operator must implement the following methods to reduce the risk associated with controller fatigue that could inhibit a controller's ability to carry out the roles and responsibilities the operator has defined: (1) … (2) Educate controllers and supervisors in fatigue mitigation strategies and how off- duty activities contribute to fatigue; Third Coast did not implement methods to reduce the risk associated with controller fatigue that could inhibit a controller's ability to carry out the roles and responsibilities the operator has defined. Specifically, Third Coast did not educate controllers and supervisors in fatigue mitigation strategies and how off-duty activities contribute to fatigue. Third Coast does provide an annual power point presentation to the controllers regarding fatigue mitigation, however, it only discusses the importance of balancing work and home life. Further, nothing in the training manual describes or addresses how off-duty activities contribute to fatigue. Third Coast must revise their Procedures to clearly provide how controllers will be trained in fatigue mitigation strategies and how off-duty activities contribute to fatigue. 6. § 195.446 - Control room management. (h) Training. Each operator must establish a controller training program and review the training program content to identify potential improvements at least once each calendar year, but at intervals not to exceed 15 months. An operator's program must provide for training each controller to carry out the roles and responsibilities defined by the operator. In addition, the training program must include the following elements; The training manual describes what appears to be two different final evaluations, one under Section 8.3.4 and another under 8.3.5. While Section 8.3.5 appears to be specifically for Operator Qualifications (OQ), OQ has evaluation requirements that are not satisfied by the procedures described on the form CRM-APP-805. Additionally, Section 8.3.5 mentions a form (CRM-APP-806) that is not found in the training manual. Section 8.3.5, Final Evaluation, states a discussion is conducted as trainees’ final evaluation. This evaluation is not described to ensure that the test is performed effectively and consistently. 4#

52021007NOA_Notice of Amendment_03042021_(20-172190)_text.pdf, page 5Sections that cover Phase I, Phase II, and Phase III fail to identify a pass/fail criterion or to define a successful passing score that must be achieved for the training elements. Section 8.3.5, Final Evaluation, is the only section that includes testing criteria and it appears that the criterion applies only to written or skill exams for operator qualifications. Oral testing is mentioned for Phases I-II; however, the testing criterion is not defined. Additionally, the review process fails to identify the review interval correctly as it states, “The Training Program Content will be reviewed on an annual basis and documented on CRM-APP- 801: Review of Controller Training.” The review of the training program content to identify potential improvements must occur at least once each calendar year, but at intervals not to exceed 15 months. The items listed in the training program regarding review of the training, along with the identified form used for documenting the review, fails to indicate how the training content is reviewed. Rather, the form asks only if training was performed rather than evaluating the training content. The identified form (CRM-APP-801) also has a different name than the procedure states. The Training Program, Section 8.5 – Fatigue Management Training directs the reader to CRM- 004 – Fatigue Management, Revision 10, Revised August 14, 2019. Within this document, Section 4.8 Fatigue Management Strategies (Education) fails to clearly explain how the operator will perform a review of the fatigue education content. The training program states that the review will consider several items but it’s unclear how these items will be used to determine or gauge the effectiveness of the fatigue education content. Third Coast must revise their training program to clearly describe the process for training controllers in each phase identified, develop and carry out oral examinations to ensure consistency in training and evaluation, and develop pass/fail criteria for each phase of training. Additionally, Third Coast must revise their procedure for reviewing the training program content (including fatigue mitigation education) to determine effectiveness, metrics used for the review, and identify any improvements necessary or document no improvements were needed. 7. § 195.446 - Control room management. (h) Training. Each operator must establish a controller training program and review the training program content to identify potential improvements at least once each calendar year, but at intervals not to exceed 15 months. An operator's program must provide for training each controller to carry out the roles and responsibilities defined by the operator. In addition, the training program must include the following elements: (1) Responding to abnormal operating conditions likely to occur simultaneously or in sequence; Third Coast did not establish a controller training program that includes training regarding responding to abnormal operating conditions likely to occur simultaneously or in sequence. CRM-008, Section 8.2, Program, lists all the training elements that will be covered in the 5#

52021007NOA_Notice of Amendment_03042021_(20-172190)_text.pdf, page 6training program, but it fails to explain the details of how the controllers are trained. Specifically, the training program fails to identify any abnormal operating conditions (AOC) that are likely to occur simultaneously or in sequence or how controllers are trained on abnormal operating conditions that may occur. Third Coast must revise their training procedures to address how controllers will be trained on abnormal operating conditions that are likely to occur simultaneously or in sequence. 8. § 195.446 - Control room management. (h) Training. Each operator must establish a controller training program and review the training program content to identify potential improvements at least once each calendar year, but at intervals not to exceed 15 months. An operator's program must provide for training each controller to carry out the roles and responsibilities defined by the operator. In addition, the training program must include the following elements: (1) … (3) Training controllers on their responsibilities for communication under the operator's emergency response procedures; Third Coast did not establish a controller training program that includes training controllers on their responsibilities for communication under the operator’s emergency response procedures. CRM-008, Section 8.2, Program, lists all the training elements that will be covered in the training program, but fails to explain the details of how the controllers are trained. Specifically, the training program fails to identify how controllers will be trained regarding their responsibilities for communication under the operator’s emergency response procedures. Third Coast must revise their training procedures to address how controllers will be trained on their responsibilities for communication under the operator’s emergency response procedures. 9. § 195.446 - Control room management. (h) Training. Each operator must establish a controller training program and review the training program content to identify potential improvements at least once each calendar year, but at intervals not to exceed 15 months. An operator's program must provide for training each controller to carry out the roles and responsibilities defined by the operator. In addition, the training program must include the following elements: (1) … (4) Training that will provide a controller a working knowledge of the pipeline system, especially during the development of abnormal operating conditions; Third Coast did not establish a controller training program that includes training that will provide a controller a working knowledge of the pipeline system, especially during the development of abnormal operating conditions. CRM-008, Section 8.2, Program, lists all the training elements that will be covered in the training program, but fails to explain the details of how the controllers 6#

52021007NOA_Notice of Amendment_03042021_(20-172190)_text.pdf, page 7are trained. The training program fails to identify how controllers will be provided a working knowledge of the pipeline system, especially during the development of abnormal conditions. Third Coast must revise their training procedures to address how controllers will be trained for a working knowledge of the pipeline system, especially during the development of abnormal operating conditions. 10. § 195.446 - Control room management. (j) Compliance and deviations. An operator must maintain for review during inspection: (1) … (2) Documentation to demonstrate that any deviation from the procedures required by this section was necessary for the safe operation of the pipeline facility. Third Coast failed to have an adequate procedure for creating documentation to demonstrate that any deviation from the procedures required by this section was necessary for the safe operation of the pipeline facility. Specifically, the CRM-APP-101, Control Room Management Plan Deviation Form and the control room management procedure fail to require documentation of why deviations from the procedures were necessary for the safe operation of the pipeline facility. Third Coast must revise their Procedure to create a means of documenting why a deviation was necessary for the safe operation of the pipeline facility. Response to this Notice This Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. 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). Following the receipt of this Notice, you have 30 days to submit written comments, revised procedures, or a request for a hearing under §190.211. If you do not respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue an Order Directing Amendment. If your plans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not 7#

52021007NOA_Notice of Amendment_03042021_(20-172190)_text.pdf, page 8contesting this Notice, we propose that you submit your amended procedures to my office within 60 days of receipt of this Notice. This period may be extended by written request for good cause. Once the inadequacies identified herein have been addressed in your amended procedures, this enforcement action will be closed. It is requested (not mandated) that Third Coast Midstream, LLC maintain documentation of the safety improvement costs associated with fulfilling this Notice of Amendment (preparation/revision of plans, procedures) and submit the total to Dustin Hubbard, Director, Western Region, Pipeline and Hazardous Materials Safety Administration. In correspondence concerning this matter, please refer to CPF 5-2021-007-NOA and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Dustin Hubbard Director, Western Region Pipeline and Hazardous Materials Safety Administration Enclosure: Response Options for Pipeline Operators in Compliance Proceedings cc: PHP-60 Compliance Registry PHP-500 D. Fehling (#20-172190) 8#