{"operation":"document","citation":"CPF 52021056NOPSO","title":"SFPP, LP — Safety Order","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-10-21","effective_on":null,"summary":"CLOSED safety order.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021056nopso.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021056nopso.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021056nopso","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52021056NOPSO","body":"Safety Order involving SFPP, LP. The dataset does not identify a cited regulation for this case. The case was opened on 2021-10-21 and is reported as closed as of 2025-04-02. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52021056NOPSO_Closure Letter_04022025_(21-210445).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021056NOPSO/52021056NOPSO_Closure%20Letter_04022025_(21-210445).pdf\n\n52021056NOPSO_Closure Letter_04022025_(21-210445)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021056NOPSO/52021056NOPSO_Closure%20Letter_04022025_(21-210445)_text.pdf\n\n52021056NOPSO_Consent Agreement and Order_03152024_(21-210445).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021056NOPSO/52021056NOPSO_Consent%20Agreement%20and%20Order_03152024_(21-210445).pdf\n\n52021056NOPSO_Consent Agreement and Order_03152024_(21-210445)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021056NOPSO/52021056NOPSO_Consent%20Agreement%20and%20Order_03152024_(21-210445)_text.pdf\n\n52021056NOPSO_Notice of Proposed Safety Order_10212021_(21-210445).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021056NOPSO/52021056NOPSO_Notice%20of%20Proposed%20Safety%20Order_10212021_(21-210445).pdf\n\n52021056NOPSO_Notice of Proposed Safety Order_10212021_(21-210445)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021056NOPSO/52021056NOPSO_Notice%20of%20Proposed%20Safety%20Order_10212021_(21-210445)_text.pdf\n\n52021056NOPSO_Closure Letter_04022025_(21-210445)_text.pdf\n\nVIA ELECTRONIC MAIL TO: Joshua etzel@kindermorgan.com\nApril 2, 2025\nMr. Joshua Etzel\nChief Operating Officer\nKinder Morgan Products Pipelines\n1001 Louisiana Street, Suite 1000\nHouston, Texas 77002\nCPF 5-2021-056-NOPSO\nCase Closure\nDear Mr. Etzel:\nOn March 15, 2024, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued a Consent Order and Consent Agreement (Agreement) that required Kinder Morgan Inc.\n(KMI) to implement certain corrective measures to address the safety concerns with hazardous\nliquid segments in Alabama, Arizona, California, Georgia, Florida, Louisiana, Michigan,\nMississippi, Nevada, New Mexico, North Carolina, Oregon, Texas, and Virginia.\nBased on a review of required submittals from KMI, PHMSA has determined that KMI has\nsuccessfully completed the terms of the Consent Agreement and this case is now closed with no\nfurther enforcement action with respect to the matters involved in this case. Thank you for your\ncooperation in this matter.\nSincerely,\nDustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 D. Fehling (#21-210445)\nZach Ragain Director – Engineering, Codes and Standards, KMI\n\n52021056NOPSO_Consent Agreement and Order_03152024_(21-210445)_text.pdf\n\nMarch 15, 2024\nVIA ELECTRONIC MAIL TO: wayne simmons@kindermorgan.com\nWayne Simmons\nChief Operating Officer, Products Pipelines\nKinder Morgan, Inc.\n1001 Louisiana Street, Suite 1000\nHouston, Texas 77002\nCPF No. 5-2021-056-NOPSO\nDear Mr. Simmons:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement\nbetween the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Kinder\nMorgan, Inc., which was executed on March 4, 2024. Service of the Consent Order and Consent\nAgreement by electronic mail is deemed effective upon the date of transmission and\nacknowledgement of receipt, or as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures: Consent Order and Consent Agreement\ncc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\nMr. Zach Ragain, Director, Engineering, Codes and Standards, Kinder Morgan, Inc.,\nzach_ragain@kindermorgan.com\nMs. Annie Cook, Esq., Outside Counsel for Kinder Morgan, Inc., Bracewell LLP,\nannie.cook@bracewell.com\nMs. Jessica Toll, Esq., Assistant General Counsel, Kinder Morgan, Inc.,\njessica_toll@kindermorgan.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)\nKinder Morgan, Inc., ) CPF No. 5-2021-056-NOPSO\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated October 21, 2021, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS or Agency), issued a Notice of Proposed Safety Order\n(Notice) to Kinder Morgan, Inc. (KMI or Respondent).\nIn accordance with 49 C.F.R. § 190.239, the Notice alleged that conditions appear to exist on\ncertain pipeline facilities operated by Respondent that pose pipeline integrity risk to public\nsafety, property, or the environment. The Notice also proposed that Respondent take certain\ncorrective measures to remedy the alleged conditions and ensure that the public, property, and\nthe environment are protected from the potential risk.\nIn response to the Notice, Respondent timely requested an informal consultation. During the\ninformal consultation meetings from December 2021 to January 2024, the parties engaged in\ngood-faith discussions that have resulted in the Consent Agreement attached to this Consent\nOrder that settles all of the allegations in the Notice.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. The respondent is hereby ordered to comply with the terms of the Consent\nAgreement, effective 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 U.S.C. § 60122 and 49 C.R.F. § 190.223, or in\nthe referral to the Attorney General for appropriate relief in a district court of the United States.\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nMarch 15, 2024\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, DC 20590\nIn the Matter of\nKinder Morgan, Inc., Respondent.\nCPF No. 5-2021-056-NOPSO\nOn October 21, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA),\nOffice of Pipeline Safety, issued a Notice of Proposed Safety Order (Notice) to Kinder Morgan,\nInc. (KMI or Respondent). Following an internal audit of its liquid integrity management program,\nKMI voluntarily notified PHMSA on April 7, 2021, that it had discovered anomalies that were not\nevaluated and remediated within 180 days based on application of 49 C.F.R. §\n195.452(h)(4)(iii)(H).1 PHMSA issued the Notice after it initiated an investigation of applicable\nhazardous liquid pipeline segments in Alabama, Arizona, California, Georgia, Florida, Louisiana,\nMichigan, Mississippi, Nevada, New Mexico, North Carolina, Oregon, Texas, and Virginia.\nAt the time that KMI received the final relevant inline inspection (ILI) data, KMI did not consider\nthese conditions to qualify as corrosion of or along a longitudinal seam weld that required\nexcavation or repair within 180 days through application of its integrity management program\n(IMP). KMI submitted an integrity assurance notification to PHMSA and relevant certified state\nagencies on May 20, 2021, regarding up to 2,715 anomalies on certain products pipelines, which\nwas subsequently updated in August 2021 to include an additional 581 anomalies.2 Since learning\nof the issue and in coordination with PHMSA, KMI has prioritized excavation and remediation of\nthe applicable anomalies based on risk and has less than 5% anomalies remaining.3 Until it could\ncomplete relevant repairs, KMI also implemented pressure restrictions, aerial or ground right of\nway patrols, and/or continued implementation of its corrosion control program with remote\nmonitoring and alert tracking of select locations and systems.\nThe Notice alleged that the anomalies must be remediated and that they could worsen and impair\nthe serviceability of the pipelines if left unaddressed or could develop on other areas. Specifically,\nCONSENT AGREEMENT\n1E.g., PHMSA Interpretation issued to Plains Pipeline, PI-17-0014 (Apr. 26, 2018).\n2 In an abundance of caution, KMI’s integrity assurance notifications were over inclusive as the anomalies reported\nby KMI and referenced in the Notice included some anomalies which Kinder Morgan had already evaluated and\nremediated.\n3 Among the over 95% of completed anomaly repairs, KMI reports it has completed repair of all anomalies with metal\nloss depth greater than 40% with a Type B Sleeve or through pipe replacement.\n\n\n\nPHMSA alleged that the depth and length of the anomalies, combined with the known\nmanufacturing processes of the seam type of the pipelines, pose a potential pipeline integrity risk\nto public safety, property, or the environment. The Notice proposed that Respondent take certain\ncorrective measures to remedy the alleged conditions and ensure that the public, property, and the\nenvironment are protected from potential risk.\nOn November 18, 2021, KMI responded to the Notice by timely submitting a request for an\ninformal consultation. More than a dozen informal consultations were held virtually from\nDecember 14, 2021, to April 20, 2023. Through the course of informal consultation and in\ncoordination with PHMSA, KMI excavated and remediated more than 95% of anomalies through\ninstallation of Type B sleeves or pipe replacement; among these repairs, KMI has completed repair\nof all anomalies with metal loss depth greater than 40%. With courtesy notifications to PHMSA\nand PHMSA’s express agreement, KMI has returned over 86% of the relevant pipeline segments\nto normal operating pressure and patrol frequencies once repairs were complete.\nAs a result of informal consultations, PHMSA and KMI (collectively, the Parties) agreed that\nsettlement of this proceeding will avoid further administrative proceedings or litigation and that\nentry into this Consent Agreement (Agreement) is the most appropriate means of resolving the\nissues raised in the Notice. Pursuant to 49 C.F.R. Part 190, without adjudication of any issue of\nfact or law, and upon consent and agreement of the Parties, KMI and PHMSA hereby agree as\nfollows.\nI. General Provisions\n1. Respondent acknowledges that as the operator of hazardous liquid pipeline facilities in\nAlabama, Arizona, California, Georgia, Florida, Louisiana, Michigan, Mississippi, Nevada, New\nMexico, North Carolina, Oregon, Texas, and Virginia, Respondent is subject to the jurisdiction of\nthe Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative\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.\n2. Except as set forth herein, this Agreement does not constitute a finding of violation of any\nFederal law or regulation and may not be used in any civil or administrative proceeding of any\nkind as evidence or proof of any fact, fault, or liability, or as evidence of the violation of any law,\nrule, regulation or requirement, except in a proceeding to enforce the provisions of this Agreement\nor in future PHMSA enforcement actions. Respondent neither admits nor denies any allegation or\nconclusion in the Notice or this Agreement, but agrees, for purposes of this Agreement, to address\nthe actions specified in Section III of this Agreement (Corrective Measures) and to abide by the\nterms of this Agreement.\n3. After Respondent returns this signed Agreement to PHMSA, an agency representative will\npresent it to the Associate Administrator for Pipeline Safety recommending that the Associate\nAdministrator adopt the terms of this Agreement by issuing an administrative order (Consent\nOrder) incorporating the terms of this Agreement. The terms of this Agreement constitute an offer\n\n\n\nof settlement until accepted by the Associate Administrator. Once accepted, the Associate\nAdministrator will issue a Consent Order incorporating the terms of the Agreement.\n4. Respondent consents to the issuance of the Consent Order that is consistent with this\nAgreement, and hereby waives any further procedural requirements with respect to its issuance.\nRespondent waives all rights to contest the adequacy of notice, or the validity of the Consent Order\nor this Agreement, including all rights to administrative or judicial hearings or appeals in this case,\nexcept as set forth herein.\n5. This Agreement shall apply to and be binding upon PHMSA, and upon Respondent, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all of Respondent's officers, employees, and agents\nwhose duties might reasonably include compliance with this Agreement.\n6. For all transfers of ownership or operating responsibility of KMI’s pipeline segments\nsubject to this Agreement which occur while this Agreement is in effect, Respondent will provide\na copy of this Agreement to the prospective transferee at least 30 days prior to such transfer. KMI\nwill provide written notice of the transfer to the PHMSA Western Region Director (Director) no\nlater than 60 days after the transfer occurs. Upon notice to PHMSA, the transferee will be\nresponsible for compliance with the obligations in this Agreement, as the owner and operator of\nthe relevant pipeline segments, instead of KMI.\n7. 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.\n8. Nothing in this Agreement affects or relieves Respondent of its responsibility to comply\nwith all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq.,\nand the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's right\nof access, entry, inspection, and information gathering or PHMSA's authority to bring enforcement\nactions against Respondent pursuant to the Federal pipeline safety laws, the regulations and orders\nissued thereunder, or any other provision of Federal or State law.\n9. This Agreement does not waive or modify any Federal, State, or local laws or regulations\nthat are applicable to Respondent's pipeline systems. This Agreement is not a permit, or a\nmodification 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. Respondent agrees that the activities to be performed pursuant to\nSection III may go beyond the minimum federal pipeline safety regulations.\n10. This Agreement does not create rights in, or grant any cause of action to, any third party\nnot party to this Agreement. The U.S. Department of Transportation is not liable for any injuries\nor damages to persons or property arising from acts or omissions of Respondent or its officers,\nemployees, or agents carrying out the work required by this Agreement. Respondent agrees to\n\n\n\nhold 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.\n11. Upon issuance of the Consent Order, the Parties agree to the following terms.\nII. Definitions\n12. “Affected Anomalies” means seam weld metal loss anomalies subject to the Notice that\nhave not been excavated and remediated as of the Effective Date of this Agreement, set forth in\nAppendix A.\n13. The “Director” means the Director, Pipeline and Hazardous Material Safety\nAdministration, Office of Pipeline Safety, Western Region.\n14. “Effective Date” means the date the Consent Order is issued.\n15. \"Interim Safety Measures” means the temporary pressure restrictions, additional right of\nway patrols, and other mitigative measures previously agreed to by the parties set forth in\nAppendix B.\nIII. Corrective Measures\n16. Prioritization Schedule. KMI shall prioritize the Affected Anomalies for repair\nexpeditiously based on location, completion of relevant permitting and approvals, and as crews are\navailable. KMI must complete repair of Affected Anomalies on or before July 31, 2024, unless\nextended and/or KMI has applied for a special permit per Paragraph 20.\n17. Repairs. Respondent must repair the Affected Anomalies in accordance with the approved\nremedial work plan described in Paragraph 19 with Type B Sleeves pursuant to ASME-B31.4-\n2006 – Table 451.6.2(b)(1) or, alternatively, must replace the relevant pipe segment(s), unless\naddressed pursuant to Paragraph 20.\n18. Interim Safety Measures. Respondent must maintain Interim Safety Measures, including\ntemporary pressure restrictions where applicable, on pipeline segments set forth in Appendix B\nuntil such time that the Affected Anomalies are repaired pursuant to Paragraph 17 or PHMSA has\ngranted a special permit pursuant to Paragraph 20 which Respondent is implementing. Once\nRespondent has remediated the Affected Anomalies pursuant to Paragraph 17 or is implementing\na special permit pursuant to Paragraph 20 on the relevant pipeline segment(s) in Appendix B, KMI\nmust notify the Director in writing to request that the Interim Safety Measures be lifted.\n19. Work Plan. Respondent must implement the written remedial work plan that includes the\ncorrective measures set forth in this Agreement in paragraphs 16, 17, 18, 21, and 23, and which\nhas been previously approved by the Director. KMI must:\n\n\n\nA. Revise the remedial work plan as necessary to incorporate new information\nobtained during the evaluations and associated remedial activities. Submit any such\nplan revisions in writing to the Director for prior approval. The Director may approve\nplan elements incrementally. The remedial work plan is incorporated into the\nAgreement.\nB. Implement the remedial work plan as approved by the Director, including any\nrevisions to the plan.\nC. Make the results of the inspections, field excavations, and evaluations performed\nunder the remedial work plan available to PHMSA or its representative upon\nrequest.\n20. Special Permits. In lieu of repair under Paragraph 17, Respondent may submit a special\npermit application to address Affected Anomalies to PHMSA pursuant to 49 C.F.R. § 190.341.\nRespondent must submit such special permit applications to PHMSA on or before March 31, 2024,\nand must respond to information requests made by PHMSA pursuant to such applications within\n30 days of each request. The status of special permit applications filed by Respondent to address\nAffected Anomalies under this Agreement must be included in the quarterly reports (see Paragraph\n24). For any special permit applications filed to address Affected Anomalies under this\nAgreement, Respondent agrees to cooperate fully in the special permit process per 49 C.F.R. §\n190.341. If any special permit application under this Agreement is denied by PHMSA or\nwithdrawn by Respondent, Respondent must repair the Affected Anomalies pursuant to Paragraph\n17 within 180 days of the denial/withdrawal of the special permit request, as extended pursuant to\nthis Agreement, including but not limited to Paragraphs 25, 31, 32, and 33.\n21. Close Interval Surveys. KMI must conduct an “on and off” current Close Interval Survey\n(CIS) at a maximum 5-foot spacing along the entire length of each Affected Anomaly within 6\nmonths of the Effective Date, as described below:\nA. KMI must evaluate each Affected Anomaly area in accordance with 49 C.F.R. §§\n195.571 and 195.573(a)(2), and accomplish the objectives of Paragraph 10.1.1.3 of\nNACE SP 0169.\nB. For inadequate cathodic protection (CP) level determination, KMI must conduct a\nCIS in both directions (a minimum of 1,000 feet) from the Affected Anomaly and\nuntil the CIS ends at test stations with adequate cathodic protection (CP) levels.\nC. KMI must remediate any findings within 12 months of completion of the CIS.\nD. A CIS will not be required where inadequate potentials are a result of an electrical\nshort to an adjacent foreign structure, a rectifier malfunction, an interruption of\npower source, or an interruption of CP current. KMI must document and repair\nthese instances.\n\n\n\n22. Guidance Materials Review. Respondent will use its Monthly Regulatory Verification tool\nand process to track PHMSA pipeline safety guidance materials published in the Federal Register,\nincluding frequently asked questions, advisory bulletins, and other guidance documents.\nRespondent must prepare a written report summarizing its process and send it to the Director\nwithin 90 days of the Effective Date.\n23. Historical Records Review. During implementation of the remedial work plan, Respondent\nwill compare and validate findings in the field per § 195.452(g)(1)(i-ii) with pipeline records and\nupdate those records as needed where they conflict with field findings with respect to material\nrecords, pressure test records, diameter, wall thickness, seam type, and coating type. Where pipe\nspecified minimum yield strength is unknown, Respondent will validate yield strength through\ndestructive or non-destructive testing. Respondent will utilize destructive testing as the validation\nmethod when pipe is removed and replaced, and non-destructive testing when repair is completed\nwith a Type B Sleeve. Non-destructive testing will be performed based on availability of crews\nand equipment pursuant to the spacing requirements of 192.607(c)-(e). Destructive testing will be\nperformed with tensile testing.\n24. Quarterly Reports. Respondent will submit quarterly reports to the Director that: (1)\ninclude results of the testing required by this Agreement; and (2) describe the progress of the\nrepairs and other remedial actions being undertaken as required by this Agreement. The first report\nwill be due 45 days from the Effective Date.\n25. Extensions of Time. The Director may grant an extension of time for compliance with any\nof the terms of the Agreement upon a written request timely submitted demonstrating good cause\nfor an extension. The Director shall respond in writing to any such request.\n26. Appeals. Respondent may appeal any decision of the Director to the Associate\nAdministrator for Pipeline Safety. Decisions of the Associate Administrator will be final.\nIV. Review and Approval Process\n27. With respect to any submission under Section III (Corrective Measures) of this Agreement\nthat requires the approval of the Director, the Director may: (a) approve, in whole or in part, the\nsubmission, (b) approve the submission on specified, reasonable conditions, (c) disapprove, in\nwhole or in part, the submission, or (d) any combination of the foregoing. If the Director approves,\napproves in part, or approves with conditions, KMI will take all action as approved by the Director,\nsubject to Respondent's right to invoke the dispute resolution procedures in Section V with respect\nto any conditions the Director identifies. If the Director disapproves all or any portion of the\nsubmission, the Director will provide KMI with a written notice of the deficiencies. Respondent\nwill correct all deficiencies within a reasonable time specified by the Director and resubmit it for\napproval.\nV. Dispute Resolution\n28. The Director and KMI will informally attempt to resolve any disputes arising under this\nAgreement. If Respondent and the Director are unable to informally resolve the dispute within 15\n\n\n\ncalendar days of submittal of Respondent's invoking dispute resolution, KMI may request in\nwriting, within 10 days thereafter, a written determination resolving the dispute from the Associate\nAdministrator for Pipeline Safety providing all information that Respondent believes is relevant\nto the dispute. If the request is submitted as provided herein, the Associate Administrator will\nissue a final determination in writing, which constitutes final Agency action. The existence of a\ndispute and PHMSA's consideration of matters placed in dispute will not excuse, toll, or suspend\nany term or timeframe for completion of any work to be performed under this Agreement during\nthe pendency of the dispute resolution process, except as agreed by the Director or the Associate\nAdministrator in writing.\nVI. Enforcement\n29. This Agreement, as adopted by the Consent Order, is subject to all enforcement authorities\navailable to the PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190. All procedures\nset forth or referenced in Section III will be automatically incorporated into this Agreement and\nare enforceable in the same manner.\nVII. Recordkeeping and Information Disclosure\n30. Unless otherwise required in this Agreement, KMI agrees to maintain records\ndemonstrating compliance with all requirements of this Agreement for a period of at least 5 years\nfollowing completion of all work to be performed. For any reports, plans, or other deliverables\nrequired to be submitted to PHMSA pursuant to this Agreement, KMI may assert a claim of\nbusiness confidentiality or other protections applicable to the release of information by PHMSA,\ncovering part or all of the information required to be submitted to PHMSA pursuant to this\nAgreement in accordance with 49 C.F.R. Part 7. KMI must mark the claim of confidentiality in\nwriting on each page and include a statement specifying the grounds for each claim of\nconfidentially. PHMSA will determine the release of any information submitted pursuant to this\nAgreement in accordance with 49 C.F.R. Part 7, the Freedom of Information Act, 5 U.S.C. § 552,\nDOT and PHMSA policies, and other applicable regulations and Executive Orders.\nVIII. Force Majeure\n31. Respondent agrees to perform the terms of this Agreement within the timeframes\nestablished under the remedial work plan, including pursuant to extensions under Paragraph 25 or\nmodifications under Paragraph 34, unless performance is delayed by a force majeure. For purposes\nof this Agreement, a force majeure is defined as an event arising from causes beyond the control\nof the Respondent, or any entity controlled by Respondent or Respondent’s contractors, which\ndelays or prevents performance of any obligation under the Agreement despite Respondent’s\ncommercially reasonable efforts to fulfill the obligation.\n32. If a force majeure event occurs or has occurred that may delay the performance of a term\nof this Agreement beyond the approved timeframe, Respondent shall notify the Director in writing,\nwithin 5 business days of when Respondent knew that the event might cause a delay. Such notice\nshall identify the cause of the delay or anticipated delay and the anticipated duration of the delay;\nstate the measures taken or to be taken to prevent or minimize the delay; and estimate the timetable\n\n\n\nfor implementation of those measures. Failure to comply with the notice provision of this\nparagraph and to undertake reasonable efforts to avoid and minimize the delay shall waive a claim\nof force majeure by Respondent.\n33. If the Director determines, upon notification by Respondent, that a delay or anticipated\ndelay in performance is or was attributable to a force majeure, then the Director will extend the\ntime period for the performance of that term for a reasonable period. The Director will notify\nRespondent, in writing, of the length of any extension of performance of such terms affected by\nthe force majeure. Any such extensions shall not alter Respondent’s obligation to perform or\ncomplete other terms of this Agreement which are not affected by the force majeure.\nIX. Modification\n34. The terms of this Agreement may be modified by mutual agreement of the Parties. Such\nmodifications must be in writing and signed by both parties.\nX. Termination\n35. This Agreement will terminate upon submission, approval where specified, and completion\nof the deliverables set forth in Section III. Specifically, once Respondent has completed the repair\nor replacement pursuant to Paragraph 17 or obtained a special permit pursuant to Paragraph 20 for\nthe Applicable Anomalies and completed the obligations in Section III, this Agreement will\nterminate. Nothing in this Agreement prevents KMI from completing any of the obligations earlier\nthan the deadlines provided for in this Agreement.\nXI. Ratification\n36. The Parties' undersigned representatives certify that they are fully authorized to enter into\nthe terms and conditions of this Agreement and to execute and legally bind such party to this\ndocument.\n37. The Parties hereby agree to all conditions and terms of this Agreement.\n\n\n\nFor Respondent:\n_________________________________________\nWayne G. Simmons\nChief Operating Officer – Product Pipelines\nKinder Morgan, Inc.\nDate: _________________________\nFor PHMSA:\n_________________________________________\nDustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nDate: _________________________\n\n52021056NOPSO_Notice of Proposed Safety Order_10212021_(21-210445)_text.pdf\n\nVIA E-MAIL TO MR. WAYNE SIMMONS\nOctober 21, 2021\nMr. Wayne Simmons\nChief Operating Officer\nKinder Morgan, Inc.\n1001 Louisiana Street, Suite 1000\nHouston, Texas 77002\nCPF 5-2021-056-NOPSO\nDear Mr. Simmons:\nEnclosed is a Notice of Proposed Safety Order (Notice) issued in the above-referenced case.\nThe Notice proposes that you take certain measures with respect to your various hazardous\nliquid pipeline assets in Alabama, Arizona, California, Georgia, Florida, Louisiana, Michigan,\nMississippi, Nevada, New Mexico, North Carolina, Oregon, Texas, and Virginia to ensure\npipeline safety.1 Your options for responding are set forth in the Notice. Your receipt of the\nNotice constitutes service of that document under 49 C.F.R. § 190.5.\nPHMSA appreciates the company’s initial disclosure and the cooperation to date regarding\nmeasures taken and we look forward to a successful resolution to ensure pipeline safety. Please\ndirect any questions on this matter to me at 720-963-3160.\nSincerely,\nDustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Notice of Proposed Safety Order\n1 The OPIDs for these assets are: 2190 (Central Florida Pipeline Corp.); 4472 (Cypress Interstate Pipeline LLC);\n15674 (Products (SE) Pipe Line Corp.); 18092 (Santa Fe Pacific Pipeline Partners, LP); 26125 (CALNEV); 39518\n(Kinder Morgan Utopia, LLC); and 31957 (Kinder Morgan Wink Pipeline LLC).\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWESTERN REGION\nLAKEWOOD, CO 80228\n____________________________________\n)\nIn the Matter of )\n)\nKinder Morgan, Inc., ) CPF No. 5-2021-056-NOPSO\n)\nRespondent. )\n____________________________________)\nNOTICE OF PROPOSED SAFETY ORDER\nBackground and Purpose\nPursuant to Chapter 601 of title 49, United States Code, the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) has initiated an on-site inspection and information review of\nthe safety of Kinder Morgan Inc.’s (KMI) hazardous liquid pipeline assets located in Alabama,\nArizona, California, Georgia, Florida, Louisiana, Michigan, Mississippi, Nevada, New Mexico,\nNorth Carolina, Oregon, Texas, and Virginia to ensure pipeline safety.\nAs a result of the inspection and information review, it appears that a condition or conditions\nexist on your pipeline facilities that pose a pipeline integrity risk to public safety, property or the\nenvironment. Pursuant to 49 U.S.C. § 60117(m), PHMSA issues this Notice of Proposed Safety\nOrder (Notice), notifying you of the preliminary findings of the investigation, and proposing that\nyou take measures to ensure that the public, property, and the environment are protected from the\npotential risk.\nPreliminary Findings\n• The following operators are subject to the terms and conditions of this Notice:2\n1. OPID 2190: Central Florida Pipeline Corp.\n2. OPID 4472: Cypress Interstate Pipeline LLC\n3. OPID 15674: Products (SE) Pipe Line Corporation\n4. OPID 18092: SFPP, LP\n5. OPID 26125: CALNEV Pipeline Co.\n6. OPID 39518: Kinder Morgan Utopia, LLC\n7. OPID 31957: Kinder Morgan Wink Pipeline LLC\n2 All of these operators are subsidiaries of Kinder Morgan, Inc.\n\n\n\n2\n• In November 2020, KMI conducted an audit of its liquid integrity management program,\nand discovered that it missed the time period to remediate approximately 2,700 anomalies\noccurring on or along the longitudinal seam welds across various liquid pipeline assets\ntraversing high consequence areas (HCAs) or HCA could-affect areas in numerous\nstates.3 49 C.F.R. § 195.452(h) requires operators to take prompt action to address all\nanomalous conditions in the pipeline that the operator discovers through the integrity\nassessment or information analysis, and prescribes timelines for scheduling and repairing\ncertain conditions.4 Although KMI’s in-line inspection reports identify these anomalies\nas 180-day conditions pursuant to § 195.452(h)(4)(iii), it is unclear at this time if all these\nanomalies qualify as 180-day conditions, or if some anomalies may in fact be 60-day or\nimmediate repair conditions based on future confirmation digs.\n• On April 7, 2021, KMI notified PHMSA of the unremediated anomalies and explained\nthe steps it was taking to gather additional information to complete its internal review.\nSince that time, PHMSA has requested additional information from the company,\nincluding, for example, the sizes and locations of each unremediated anomaly, and\nvarious information on the physical attributes of each affected pipeline segment. This\ninformation is contained in two spreadsheets provided by KMI, dated August 4, 2021\nand August 27, 2021, and is attached at Exhibit 1.\n• On May 20, 2021, pursuant to 49 C.F.R. § 195.452(h)(1)(i), KMI notified PHMSA that\nit was unable to complete the remediation of approximately 2,715 anomalies that\nqualified as 180-day repair conditions on certain products pipelines within the schedule\nunder 49 C.F.R. § 195.452(h)(4)(iii)(H). KMI reported that it was in the process of\nprioritizing repairs for remediation and conducting certain repairs in 2021. KMI also\nreported to PHMSA that it had implemented weekly aerial right-of-way patrols and\ncontinued implementation of its corrosion control program, including remote monitoring\nand alert tracking of select locations and systems.\n• In a June 16, 2021 and August 13, 2021 meeting with KMI, PHMSA was informed that\nKMI had instituted 20% pressure restrictions for the majority of the impacted pipelines.\nKMI explained that for a small number of pipeline segments, it was determined that 20%\npressure reductions would not provide a safety benefit or a material margin of safety and\nwould otherwise have a detrimental impact on key geographical areas (including critical\n3 This included anomalies located on intrastate assets operated by: (1) Kinder Morgan Crude and Condensate LLC;\nand (2) Double Eagle Pipeline LLC. These assets are not subject to the safety oversight of PHMSA and are\nregulated by the Texas Railroad Commission.\n4 See, e.g., 49 C.F.R. § 195.452(h)(4)(iii)(E) (requiring operators to schedule evaluation and remediation of an area\nof general corrosion with a predicted metal loss greater than 50% of nominal wall within 180 days of discovery of\nthe qualifying condition); see also 49 C.F.R. § 195.452(h)(4)(iii)(F) (requiring operators to schedule evaluation and\nremediation of predicted metal loss greater than 50% of nominal wall that is located at a crossing of another\npipeline, or is in an area with widespread circumferential corrosion, or is in an area that could affect a girth weld\nwithin 180 days of discovery of the qualifying condition); see also 49 C.F.R. § 195.452(h)(4)(iii)(H) (requiring\noperators to schedule evaluation and remediation of corrosion of or along a longitudinal seam weld within 180 days\nof discovery of the qualifying condition).\n\n\n\n3\nresources in the communities served). In those instances, KMI conducted twice-weekly\naerial or ground patrols (weather permitting) and/or a 10% pressure reduction.\n• On August 17, 2021, KMI notified PHMSA that it made repairs on one pipeline segment\n(the Cypress Mont Belvieu to Spindletop interstate pipeline segment) and had identified\nan additional interstate pipeline in Texas with unremediated anomalies (Kinder Morgan\nWink Pipeline LLC).\n• As of the date of this Notice, there are now approximately 3,261 unremediated anomalies.\nKMI has reported to PHMSA that it has repaired approximately 12% of the reported\nanomalies.\n• The pipe characteristics of each impacted segment are noted below, organized by OPID:\nCentral Florida Pipeline Coppe\nSegment Age\nDiameter\nWall\n(yrs)\n(SMYS)\nGrade\nThickness\nSeam Type\nCoating\n(inch)\nMOP/Design\nPressure (psig)\n(inch)\nITE\n48\n8.625\n(psig)\n35000\n0.250\nOther (ERW-HF/\nCoal Tar\n285/1461\n10\"\n49\n10.75\n60000\n0.203\nDSAW)\nOther (ERW-HF/\nXtru\n1423/1632\nmainline\n10\"\n49\n10.75\n60000\n0.279\nDSAW)\nmainline\nOther (ERW-HF/\nXtru\n1423/2242\n10\"\n49\n10.75\n60000\nDSAW)\nmainline\n0.188\nOther (ERW-HF/\nXtru\n1423/1511\nmainline\n16\"\n24\n16\n52000\n0.312\nDSAW)\nOther (ERW-HF/\nCoal Tar\n1440/1460\n16\"\n24\n46000\nDSAW)\n0.500\nOther (ERW-HF/\nCoal Tar\n1440/2070\nmainline\n16\"\n17\n16\nDSAW)\n56000\nmainline\n0.375\nOther (ERW-HF/\nCoal Tar\n17\n42000\nDSAW)\n1440/1890\n16\"\nmainline\n0.406\nOther (ERW-HF/\nFBE\n1440/1535\n16\"\n17\n16\n70000\nDSAW)\n0.469\nOther (ERW-HF/| FBE\n1440/2955\nmainline\n6\n52000\nDSAW)\nmainline\n16\"\n0.312\nDSAW)\nOther (ERW-HF/\nFBE\n1440/1460\nCypress Interstate Pipeline LLC:\nSegment Age\n(yrs)\nDiameter\nPipe Grade\nWall\n(inch)\nThickness\nSeam Type\nCoating\nMOP/Design\nPressure (psig)\nCypress\n30\n8.625\n(psig)\n60000\n(inch)\n0.219\nOther (ERW-\nHF/ DSAW)\nFBE\n2160/2194\n\n\n\n4\nProducts (SE) Pipe Line Corp.:\nSegment\nAge\nDiameter\nPipe Grade\nWall\nSeam Type\nCoating\nMOP/Design\n(yrs)\n(inch)\n(SMYS)\nThickness\nPressure (psig)\n12\"-14W\n(psig)\n(inch)\n16\n12.75\n52000\n0.203\nOther (ERW-\nCoal Tar\n1087/1192\n12\"-14W\nHF/ DSAW)\n57\n12.75\n12\"-14W\n57\n52000\n52000\n0.203\n0.203\nERW-LF\nCoal Tar\n1087/1192\n12\"-14W\n12.75\nERW-LF\nCoal Tar\n1106/1192\n57\n12.75\n52000\n0.203\nERW-LF\nCoal Tar\nCoal Tar\n1096/1192\n12\"-14W\n57\n12.75\n52000\n0.203\nERW-LF\n1146/1192\n14\"-14W\n57\n14\n52000\n0.219\nERW-LF\nCoal Tar\n14\"-14W\n14\"-14W\n57\n14\n52000\n1027/1171\n52000\n0.219\n57\n57\n14\n0.219\nERW-LF\nAsphaltic\nCoal Tar\n1027/1171\n14\"-14W\n14\n52000\n0.219\nERW-LF\n1098/1171\nERW-LF\nCoal Tar\n1099/1171\nDS1\n80\n80\n12.75\n12.75\n35000\n35000\n0.375\nERW-LF\nERW-LF\nCoal Tar\n720/1482\nDS1\n0.375\nSomastic\n720/1482\nDS2\n80\n80\n12.75\n35000\n35000\n0.375\nDS2\n12.75\n0.375\nERW-LF\nERW-LF\nSomastic\nCoal Tar\n720/1482\n720/1482\nDS3\n80\n12.75\n35000\n0.375\nERW-LF\nCoal Tar\n720/1482\nDS3\n80\n12.75\n35000\n0.375\nERW-LE\nSomastic\n720/1482\nDS4\n80\n12.75\n35000\n0.375\nERW-LF\nCoal Tar\n720/1482\nDS4\n80\n12.75\n35000\n35000\n0.375\nERW-LF\nSomastic\n720/1482\nMDA1\n80\n12.75\n0.375\nERW-LF\nCoal Tar\n1181/1482\nMDA2\n49\n12.75\n35000\n0.375\nOther (ERW-\nCoal Tar\n1243/1482\n8CO\n54\n8.625\nHF/ DSAW)\n52000\n0.188\nOther (ERW-\nCoal Tar\n1632/1632\n8CO\n50\n8.625\n52000\n0.188\nOther (ERW-\nHF/ DSAW)\nCoal Tar\n1632/1632\n8MC\n52\n8.625\n52000\n0.188\nHF/ DSAW)\nOther (ERW-\nCoal Tar\n1632/1632\n8RK1\n45\n8.625\n42000\n0.250\nHF/ DSAW)\nOther (ERW-\nCoal Tar\n1526/1753\n10BMG\n50\n10.75\nHF/ DSAW)\n46000\n0.250\nO","truncated":true,"body_characters":70584}