{"operation":"document","citation":"CPF 52021022NOPV","title":"SFPP, LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-05-12","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.446(c), 195.452(g)(3), 195.452(i)(3), 195.452(i)(4), 195.452(j)(2), 195.583(a), 195.583(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021022nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021022nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021022nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52021022NOPV","body":"Notice of Probable Violation involving SFPP, LP. PHMSA's enforcement data identifies the cited regulations as 195.446(c),  195.452(g)(3),  195.452(i)(3),  195.452(i)(4),  195.452(j)(2),  195.583(a),  195.583(b). The case was opened on 2021-05-12 and is reported as closed as of 2022-03-01. Proposed civil penalty: $2,231,779. Assessed civil penalty: $1,493,200. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52021022NOPV_Closure Letter_03012022_(18-139725).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021022NOPV/52021022NOPV_Closure%20Letter_03012022_(18-139725).pdf\n\n52021022NOPV_Closure Letter_03012022_(18-139725)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021022NOPV/52021022NOPV_Closure%20Letter_03012022_(18-139725)_text.pdf\n\n52021022NOPV_Consent Agreement and Order_10222021_(18-139725).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021022NOPV/52021022NOPV_Consent%20Agreement%20and%20Order_10222021_(18-139725).pdf\n\n52021022NOPV_Consent Agreement and Order_10222021_(18-139725)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021022NOPV/52021022NOPV_Consent%20Agreement%20and%20Order_10222021_(18-139725)_text.pdf\n\n52021022NOPV_Op Rsp to Not Req for Stlmnt Conf Req for Hrng_06112021_(18-139725).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021022NOPV/52021022NOPV_Op%20Rsp%20to%20Not%20Req%20for%20Stlmnt%20Conf%20Req%20for%20Hrng_06112021_(18-139725).pdf\n\n52021022NOPV_Operator Hearing Request Withdrawn_10262021_(18-139725).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021022NOPV/52021022NOPV_Operator%20Hearing%20Request%20Withdrawn_10262021_(18-139725).pdf\n\n52021022NOPV_PCP PCO_05122021_(18-139725).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021022NOPV/52021022NOPV_PCP%20PCO_05122021_(18-139725).pdf\n\n52021022NOPV_PCP PCO_05122021_(18-139725)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021022NOPV/52021022NOPV_PCP%20PCO_05122021_(18-139725)_text.pdf\n\n52021022NOPV_PHC Hearing Scheduled_07132021_(18-139725).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021022NOPV/52021022NOPV_PHC%20Hearing%20Scheduled_07132021_(18-139725).pdf\n\n52021022NOPV_PHC Hearing Scheduled_07132021_(18-139725)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021022NOPV/52021022NOPV_PHC%20Hearing%20Scheduled_07132021_(18-139725)_text.pdf\n\n52021022NOPV_Consent Agreement and Order_10222021_(18-139725)_text.pdf\n\nOctober 22, 2021\nVIA ELECTRONIC MAIL TO: dax sanders@kindermorgan.com\nDax A. Sanders\nPresident, Products Pipeline\nKinder Morgan, Inc.\n1001 Louisiana Street, Suite 1000\nHouston, Texas 77002\nCPF No. 5-2021-022-NOPV\nDear Mr. Sanders:\nEnclosed please find a Consent Order incorporating the terms of the fully executed Consent\nAgreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and\nSFPP, L.P., a subsidiary of Kinder Morgan, Inc., which was executed on October 20, 2021.\nService of the Consent Order and Consent Agreement by electronic mail is deemed effective\nupon the date of transmission, or as otherwise provided under 49 C.F.R. § 190.5.\nSincerely,\nAlan K Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures: Consent Agreement and Consent Order\nCc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\nMs. Catherine Little, Outside Counsel for Kinder Morgan, Troutman Pepper,\ncatherine.little@troutman.com\nCONFIRMATION OF RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nSFPP, L.P., ) CPF No. 5-2021-022-NOPV\na subsidiary of Kinder Morgan, Inc., )\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated May 12, 2021, the Pipeline and Hazardous Materials Safety Administration,\nOffice of Pipeline Safety (PHMSA), issued a Notice of Probable Violation, Proposed Civil\nPenalty and Proposed Compliance Order (Notice) to SFPP, L.P. (SFPP or Respondent).\nIn response to the Notice, Respondent contested certain allegations in the Notice and requested a\nhearing. Subsequently, PHMSA and Respondent (collectively referred to as the Parties) agreed\nthat the issues in the Notice may be resolved through informal discussions. On August 9, 2021,\nthe Parties engaged in good-faith settlement discussions that have resulted in the Consent\nAgreement attached to this Order that settles all of the issues in the Notice.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nOrder. Respondent is hereby ordered to comply with the terms of the Consent Agreement,\neffective immediately.\nPursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent Order may result in\nthe assessment of civil penalties as set forth in 49 C.F.R. § 190.223.\nThe terms and conditions of this Consent Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nOctober 22, 2021\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nSFPP, L.P., ) CPF No. 5-2021-022-NOPV\na subsidiary of Kinder Morgan, Inc. )\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nOn December 15-21, 2018, May 1-3, 2019, and June 3-5, 2019, pursuant to 49 U.S.C. § 60117,\nrepresentatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office\nof Pipeline Safety (OPS), responded to an incident that occurred on SFPP L.P.’s (SFPP or\nRespondent) 12-inch diameter El Paso-to-Tucson (SFPP 12-inch EPT) Pipeline near Anthony,\nNew Mexico. SFPP is a subsidiary of Kinder Morgan, Inc. (KMI).\nAt approximately 23:40 MST on December 13, 2018, the SFPP 12-inch EPT Pipeline ruptured,\nresulting in a release of approximately 11,000 barrels of gasoline into a drainage ditch (Failure).\nThe Failure site was on the partially-buried segment at or near the western bank of the Anthony\nDrain canal. The lower portion of the pipeline was in contact with soil. The 12-inch EPT Pipeline\ntraverses or is in close proximity to numerous high consequence areas (HCAs), including\nunusually sensitive areas (USAs), as defined in 49 C.F.R. Part 195.\nFollowing the Failure, PHMSA deployed investigators to the Failure site to conduct an\ninvestigation into the Failure and its cause(s). On December 28, 2018, PHMSA issued a Notice\nof Proposed Safety Order, CPF No. 5-2018-5007S, to Respondent, alleging that the continued\noperation of SFPP’s 12-inch EPT Pipeline posed an integrity risk to public safety, property, or the\nenvironment related to the Failure (NOPSO). PHMSA proposed that Respondent take certain\ncorrective actions to address this risk, including exposed-pipe surveys, inline inspections, data\nintegration, remediation and repair of anomalies or defects consistent with atmospheric corrosion\nand integrity management regulations, emergency flow restricting devices (EFRD) studies, a root\ncause failure analysis, and various revisions of its operating procedures.\nOn January 22, 2019, Respondent responded to the NOPSO and did not contest the proposed\nfindings or remedial actions. On August 8, 2019, PHMSA issued a final Safety Order, finding that\ncontinued operation of the SFPP 12-inch EPT Pipeline without corrective or remedial measures\nwould pose a pipeline integrity risk. The Safety Order adopted the preliminary findings and\n\n\n\nremedial measures set forth in the NOPSO. To date, Respondent has completed the required\nremedial measures, including completion of all actions required in the Remedial Work Plan as\napproved by PHMSA.\nOn June 17, 2020, PHMSA issued its Failure Investigation Report, which determined that the\nFailure was caused by external corrosion underneath tape-wrapped coating and that the corrosion\nhad progressed to the point that the remaining pipe wall thickness could no longer support the\ninternal pipe pressure. Contributing causes to the Failure included Respondent’s failure to conduct\natmospheric corrosion inspections on the exposed span and Respondent’s failure to provide its\ncontrollers with adequate information to recognize this event as a pipeline failure.\nAs a result of the investigation, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated May 12, 2021, a Notice of Probable Violation, Proposed Civil Penalty\nand Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice\nproposed finding that Respondent had violated seven provisions of 49 C.F.R. Part 195, and\nproposed ordering Respondent to take certain measures to correct the alleged violations, and to\npay a civil penalty in the amount of $2,231,779. Two of the alleged violations were brought as\nwarning items pursuant to 49 C.F.R. § 190.205.\nRespondent responded to the Notice by letter dated June 11, 2021 (Response). Respondent\ncontested some of the allegations of violation and provided additional information in response to\nthe Notice. Specifically, Respondent did not contest the allegations of violation in Items 1 and 4-\n7, and the Proposed Compliance Order (PCO) for Items 4 and 5. Respondent contested the\nallegations of violation in Items 2 and 3, along with the proposed penalty for each of those\nallegations, and the PCO for Item 3. Respondent requested a hearing and informal settlement\nconference on Items 2 and 3.\nOn August 9, 2021, Respondent and PHMSA (collectively the Parties) met telephonically to\ndiscuss a possible resolution of the case. During the informal settlement conference and\nsubsequent follow-up discussions, the Parties offered additional information regarding the\nallegations, and an agreement was reached that resolves all of the issues in the Notice.\nHaving agreed that settlement of this proceeding will avoid further administrative proceedings or\nlitigation and will serve the public interest by promoting safety and protection of people, property,\nand the environment, pursuant to 49 C.F.R. Part 190, and upon consent and agreement of\nRespondent and PHMSA, the Parties hereby agree as follows:\nI. General Provisions\n1. Respondent acknowledges that as the operator of the pipeline facilities subject to\nthe Notice, Respondent and its referenced hazardous liquid pipeline facilities are subject to the\njurisdiction of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and\norders issued thereunder. For purposes of this Agreement, Respondent acknowledges that it\nreceived proper notice of PHMSA’s action in this proceeding and that the Notice states claims\nupon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq., and the regulations and\norders issued thereunder.\n\n\n\n2. After Respondent returns this signed Agreement to PHMSA, the Agency’s\nrepresentative will present it to the Associate Administrator for Pipeline Safety, recommending that\nthe Associate Administrator adopt the terms of this Agreement by issuing an administrative order\n(Consent Order) incorporating the terms of this Agreement. The terms of this Agreement constitute\nan offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate\nAdministrator will issue a Consent Order incorporating the terms of this Agreement.\n3. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to contest\nthe adequacy of notice, or the validity of the Consent Order or this Agreement, including all rights\nto administrative or judicial hearings or appeals, except as set forth herein.\n4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons otherwise\nbound by law. Respondent agrees to provide a copy of this Agreement and any incorporated work\nplans and schedules to all of Respondent’s officers, employees, and agents whose duties might\nreasonably include compliance with this Agreement.\n5. This Agreement constitutes the final, complete, and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement. The\nParties acknowledge that there are no representations, agreements, or understandings relating to\nsettlement other than those expressly contained in this Agreement, except that the terms of this\nAgreement may be construed by reference to the Notice.\n6. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et\nseq., and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA’s\nright of access, entry, inspection, and information gathering or PHMSA’s authority to bring\nenforcement actions against Respondent pursuant to the Federal pipeline safety laws, the\nregulations and orders issued thereunder, or any other provision of Federal or State law.\n7. For all transfers of ownership or operating responsibility of Respondent’s pipeline\nsystem referenced herein, Respondent will provide a copy of this Agreement to the prospective\ntransferee at least 30 days prior to such transfer. Respondent will provide written notice of the\ntransfer to the PHMSA Western Regional Director no later than 60 days after the transfer occurs.\n8. This Agreement does not waive or modify any Federal, State, or local laws or\nregulations that are applicable to Respondent’s pipeline systems. This Agreement is not a permit,\nor a modification of any permit, under any Federal, State, or local laws or regulations. Respondent\nremains responsible for achieving and maintaining compliance with all applicable Federal, State,\nand local laws, regulations and permits.\n9. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not party to this Agreement. The U.S. Department of Transportation is not liable for any\ninjuries or damages to persons or property arising from acts or omissions of Respondent or its\nofficers, employees, or agents carrying out the work required by this Agreement. Respondent\n\n\n\nUpon issuance of the Consent Order, the Parties agree to the following terms.\nagrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents, and\nrepresentatives from any and all causes of action arising from any acts or omissions of Respondent\nor its contractors in carrying out any work required by this Agreement.\n10. Agreement.\nRespondent neither admits nor denies any allegation or conclusion in the Notice or\nthis Agreement, but agrees, for purposes of this Agreement, to comply with the terms of this\n11. II. Findings of Violation\n11. Item 1 of the Notice: With respect to Item 1 of the Notice, which Respondent did\nnot contest, PHMSA finds that Respondent violated 49 C.F.R. § 195.583(a) by failing to conduct\natmospheric corrosion inspections at the required intervals, as alleged in the Notice. This finding\nof violation shall be considered by PHMSA as a prior offense in any future PHMSA enforcement\naction taken against Respondent.\n12. Item 2 of the Notice: With respect to Item 2 of the Notice, PHMSA finds that\nRespondent violated 49 C.F.R. § 195.583(b) by failing to give particular attention to pipe at soil-\nto-air interfaces and under disbonded coatings during atmospheric corrosion inspections, as\nalleged in the Notice. This finding of violation shall be considered by PHMSA as a prior offense\nin any future PHMSA enforcement action taken against Respondent.\n13. Item 3 of the Notice: With respect to Item 3 of the Notice, PHMSA finds that\nRespondent violated 49 C.F.R. § 195.452(g) by failing to periodically evaluate the integrity of\neach pipeline segment by analyzing all available information about the integrity of the entire\npipeline and the consequences of a failure, including data gathered through integrity assessments\nand data gathered in conjunction with other inspections, tests, surveillance and patrols required by\nPart 195. This finding of violation shall be considered by PHMSA as a prior offense in any future\nPHMSA enforcement action taken against Respondent.\n14. Item 4 of the Notice: With respect to Item 4 of the Notice, which Respondent did\nnot contest, PHMSA finds that Respondent violated 49 C.F.R. § 195.446(c) by failing to provide\nits controllers with the information, tools, processes, and procedures necessary for the controllers\nto carry out the roles and responsibilities Respondent defined for abnormal and emergency\noperation. This finding of violation shall be considered by PHMSA as a prior offense in any future\nPHMSA enforcement action taken against Respondent.\n15. Item 5 of the Notice: With respect to Item 5 of the Notice, which Respondent did\nnot contest, PHMSA finds that Respondent violated 49 C.F.R. § 195.452(i)(4) by failing to\nproperly evaluate swiftness of leak detection and pipeline shutdown capabilities, and release\nvolume, when it conducted its Emergency Restricting Flow Device (EFRD) analysis. This finding\nof violation shall be considered by PHMSA as a prior offense in any future PHMSA enforcement\naction taken against Respondent.\n\n\n\nIII. Civil Penalties\n16. Item 1 of the Notice: Without admission, Respondent agrees to pay the proposed\ncivil penalty amount of $46,600 for Item 1 as set forth in the Notice.\n17. Item 2 of the Notice: Without admission, Respondent agrees to pay an adjusted\ncivil penalty amount of $46,600 for Item 2 of the Notice, representing a reduction in the number\nof instances of violation from two to one in the civil penalty assessment factor for the gravity of\nthe violation. The remaining civil penalty assessment factors for this Item, as set forth in the\nPipeline Safety Violation Report for this case, remain unchanged.\n18. Item 3 of the Notice: Without admission, Respondent agrees to pay an adjusted\ncivil penalty amount of $1,400,000 for Item 3 of the Notice, representing a credit in the civil\npenalty assessment factor for other matters as justice may require to account for the corrective\nactions Respondent has taken pursuant to the Safety Order and beyond. The remaining civil\npenalty assessment factors for this Item, as set forth in the Pipeline Safety Violation Report for\nthis case, remain unchanged.\n19. Respondent agrees to pay the full civil penalty amount of $1,493,200 within 30\ncalendar days of the Effective Date of this Agreement. Payment may be made by sending a\ncertified check or money order (containing the CPF Number for this case), made payable to “U.S.\nDepartment of Transportation,” to the Federal Aviation Administration, Mike Monroney\nAeronautical Center, Financial Operations Division (AMK-325), 6500 S. MacArthur Blvd,\nOklahoma City, Oklahoma 79169. Federal regulations (49 C.F.R. § 89.21(b)(3)) also permit\npayment to be made by wire transfer through the Federal Reserve Communications System\n(Fedwire), to the account of the U.S. Treasury. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169. The\nFinancial Operations Division telephone number is (405) 954-8845.\n20. Failure to pay the $1,493,200 civil penalty will result in accrual of interest at the\ncurrent annual rate in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9, and 49 C.F.R. § 89.23.\nPursuant to those same authorities, a late penalty charge of six percent (6%) per annum will be\ncharged if payment is not made within 110 days of service. Furthermore, failure to pay the civil\npenalty may result in referral of the matter to the Attorney General for appropriate action in a\ndistrict court of the United States.\nIV. Compliance Requirements\n21. Item 3 of the Notice: Respondent agrees to complete annual interim reviews of its\nData Integration Program to ensure compliance with the requirements set forth in 49 C.F.R. §\n195.452(g). This review must be performed by Managers representing Pipeline Integrity,\nCorrosion Control, and Operations. Respondent agrees to revise its Integrity Management Plan to\ninclude this requirement and must implement it within 90 days of the Effective Date of this\nAgreement.\n22. Item 4 of the Notice: Respondent agrees to complete annual interim reviews of its\n\n\n\nL-O&M 1101 – Sections 3.8 and 3.9 to ensure compliance with the requirements set forth in 49\nC.F.R. § 195.446(c). This review must be performed by the Control Room Supervisor and his/her\nManager. Respondent agrees to revise its L-O&M procedures to include this requirement and must\nimplement it within 90 days of the Effective Date of this Agreement.\n23. Item 5 of the Notice: Respondent agrees to revise its L-O&M procedures to ensure\nits EFRD analyses include consideration of accurate information and all the relevant risk factors,\nincluding, but not limited to, those set forth in § 195.452(i)(4). Specifically, Respondent agrees to\nrevise its L-O&M procedures to include these requirements and implement the procedures within\n90 days of the Effective Date of this Agreement. As noted in the PCO, it is also recommended,\nbut not required, that Respondent implement similar procedures for its Leak Detection Analyses\nunder § 195.452(i)(3).\nV. Warning Items:\n24. Item 6 of the Notice: With respect to Item 6 of the Notice, this Item was issued\nas a warning item, requiring no further action by Respondent.\n25. Item 7 of the Notice: With respect to Item 7 of the Notice, this Item was issued\nas a warning item, requiring no further action by Respondent.\nVI. Enforcement\n26. This Agreement is subject to all enforcement authorities available to PHMSA under\n49 U.S.C. § 60101 et seq. and 49 C.F.R. Part 190, including administrative civil penalties under\n49 U.S.C. § 60122, of up to $222,504 per violation for each day the violation continues and referral\nof the case to the Attorney General for judicial enforcement, if PHMSA determines that Respondent\nis not complying with the terms of this Agreement in accordance with determinations made by the\nDirector, or if appealed, in accordance with decisions of the Associate Administrator. The\nmaximum civil penalty amounts are adjusted annually for inflation. See, e.g., Pipeline Safety:\nInflation Adjustment of Maximum Civil Penalties, 82 Fed. Reg. 19325 (April 27, 2017).\nVII. Dispute Resolution\n27. The Director and Respondent will informally attempt to resolve any disputes arising\nunder this Agreement, including but not limited to any decision of the Director. If Respondent and\nthe Director are unable to informally resolve the dispute within 15 calendar days after the dispute\nis first raised, in writing, to the Director, Respondent may submit a written request for a\ndetermination resolving the dispute from the Associate Administrator for Pipeline Safety, PHMSA.\nSuch request must be made in writing and provided to the Director, counsel for the Western Region,\nand to the Associate Administrator for Pipeline Safety, no later than 10 calendar days from the 15-\nday deadline for informal resolution referenced in this paragraph. Along with its request,\nRespondent must provide the Associate Administrator with all information Respondent believes is\nrelevant to the dispute. Decisions of the Associate Administrator under this paragraph will\nconstitute final agency action. The existence of a dispute and PHMSA’s consideration of matters\nplaced in dispute will not excuse, toll, or suspend any term or timeframe for completion of any work\nto be performed under this Agreement during the pendency of the dispute resolution process, except\n\n\n\nas agreed by the Director or the Associate Administrator in writing, or ordered by a court of\ncompetent jurisdiction.\nVIII. Effective Date\n28. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.\nIX. Modification\n29. The terms of this Agreement may be modified by mutual agreement of the Parties.\nSuch modifications must be in writing and signed by both parties.\nX. Termination\n30. This Agreement shall remain in effect until the Corrective Order items are satisfied,\nas determined by the Director. The Consent Agreement shall not terminate until the Director\nconfirms, in writing, that the Consent Agreement is terminated in accordance with this paragraph.\nNothing in this Agreement prevents Respondent from completing any of the obligations earlier\nthan the deadlines provided for in this Agreement.\nXI. Ratification\n31. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Agreement and to execute and legally bind such party\nto this document.\n32. The Parties hereby agree to all conditions and terms of this Agreement.\nFor SFPP, L.P.:\nBy: Kinder Morgan Operating LLC “D,” its general partner\n___________________________________ ____________________\nDax A. Sanders, President, Products Pipeline Date\nFor PHMSA:\n___________________________________ ____________________\nDustin B. Hubbard, Director, Western Region, OPS Date\n\n52021022NOPV_Closure Letter_03012022_(18-139725)_text.pdf\n\nVIA E-MAIL TO MR. DAX A. SANDERS\nMarch 1, 2022\nMr. Dax A. Sanders\nPresident, Product Pipelines\nKinder Morgan Inc.\n1001 Louisiana Street, Suite 1000\nHouston, TX 77002\nCPF 5-2021-022-NOPV\nClosure Letter\nDear Mr. Sanders:\nOn October 22, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to\nSFPP LP, an indirect subsidiary of Kinder Morgan, Inc., a Consent Order in the above-referenced case.\nThis Order incorporated the terms of the Consent Agreement executed between the parties on October 20,\n2021. The Consent Agreement included findings of violation, compliance requirements, and an assessed\ncivil penalty of $1,493,200. Based on our review of the documentation you provided and confirmation of\npayment of the civil penalty, it has been determined that you have complied with the terms of the Consent\nAgreement and Order.1\nAccordingly, this case is now closed and no further action is contemplated with respect to the matters\ninvolved in this case. Thank you for your cooperation in this matter.\nSincerely,\nDustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 H. Flaherty (#18-139725)\nMr. Jaime Hernandez, Director–Engineering: Codes and Standards, KMI\nMs. Catherine Little, Troutman Pepper, LLP\n1 PHMSA does request, however, that SFPP consider clarifying its Integrity Management Program Manual Section\n6.3.2 Data Acquisition, by noting the position “Manager” with a hyphen rather than a comma, to more clearly\ndistinguish the roles involved, as follows:\n… Annually, in Q1 of each year, the Manager – Risk Engineering, the Manager - Corrosion,\nand the Business Unit Director Operations, or their…\n\n52021022NOPV_PHC Hearing Scheduled_07132021_(18-139725)_text.pdf\n\nJuly 13, 2021\nVIA ELECTRONIC MAIL TO: catherine.little@troutman.com and dustin.hubbard@dot.gov\nMs. Catherine D. Little, Esq.\nCounsel for Kinder Morgan, Inc.\nTroutman Pepper Hamilton Sanders, LLP\n600 Peachtree Street, NE, Suite 3000\nAtlanta, Georgia 30308\nMr. Dustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\n12300 W. Dakota Avenue, Suite 110\nLakewood, CO 80228\nRe: Notice of Hearing, Kinder Morgan, Inc.\nCPF No. 5-2021-022-NOPV\nDear Ms. Little and Mr. Hubbard:\nIn accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of\nProbable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the Pipeline\nand Hazardous Materials Safety Administration in the above-referenced case. The hearing will take\nplace on October 6, 2021, beginning at 8:30 a.m. Mountain Time.\nThe hearing will be held via videoconference. I will provide the videoconference information prior\nto the hearing. At least 10 calendar days prior to the hearing (or by September 27, 2021), both\nparties must submit and exchange any additional written materials they intend to present at the\nhearing and the name and email address of each attendee. This information should be provided\nelectronically. Materials not submitted by this date may be excluded.\nIf you have any questions, please do not hesitate to contact me.\nSincerely,\nLarry White\nPresiding Official\ncc: Ms. Mary Clair Lyons, Assistant General Counsel, Kinder Morgan, Inc.\nmary_lyons@kindermorgan.com\nMs. Erin Hendrixson, Counsel, Western Region, Office of Pipeline Safety,\nerin.hendrixson@dot.gov","truncated":false,"body_characters":28979}