PLAINS MARKETING, L.P. — Warning Letter

52023061WL_Warning Letter_12202023_(23-264901)_text.pdf, page 1Official PDFWARNING LETTER VIA ELECTRONIC MAIL TO: patrick.hodgins@plains.com December 20, 2023 Mr. Patrick D. Hodgins Vice President, Health, Safety & Environmental Plains Pipeline, L.P. 333 Clay Street, Suite 1900 Houston, TX 77002 CPF 5-2023-061-WL Dear Mr. Hodgins: From April 17, 2023, to April 21, 2023, and October 3, 2023, to October 5, 2023, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected the Plains Marketing Terminal (PMT) and the Plains Stateline pipeline located in Midland, Texas. As a result of the inspection, it is alleged that you have committed a probable violation of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and the probable violation is:#

52023061WL_Warning Letter_12202023_(23-264901)_text.pdf, page 21. § 195.428 Overpressure safety devices and overfill protection systems. (a) Except as provided in paragraph (b) of this section, each operator shall, at intervals not exceeding 15 months, but at least once each calendar year, or in the case of pipelines used to carry highly volatile liquids, at intervals not to exceed 7 ½ months, but at least twice each calendar year, inspect and test each pressure limiting device, relief valve, pressure regulator, or other item of pressure control equipment to determine that it is functioning properly, is in good mechanical condition, and is adequate from the standpoint of capacity and reliability of operation for the service in which it is used. Plains failed to inspect and test overfill protection devices on certain aboveground breakout tanks at Midland PMT at intervals not exceeding 15 months but at least once each calendar year as is required by § 195.428 Specifically, Plains did not determine whether overfill protection devices on Tanks 125167, 125168, 125169, and 125170 were functioning properly for calendar year 2022. During the inspection, Tank Overfill Protection Inspection Form 509 were reviewed for the 14 interstate breakout tanks at Midland PMT from 2020-2023. Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed $257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a related series of violations. For violation occurring on or after March 21, 2022, and before January 6, 2023, the maximum penalty may not exceed $239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for a related series of violations. For violation occurring on or after May 3, 2021, and before March 21, 2022, the maximum penalty may not exceed $225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a related series of violations. For violation occurring on or after January 11, 2021, and before May 3, 2021, the maximum penalty may not exceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a related series of violations. For violation occurring on or after July 31, 2019, and before January 11, 2021, the maximum penalty may not exceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related series of violations. For violation occurring on or after November 27, 2018, and before July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679. For violation occurring on or after November 2, 2015, and before November 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not to exceed $2,090,022. We have reviewed the circumstances and supporting documents involved in this case and have decided not to conduct additional enforcement action or penalty assessment proceedings at this time. We advise you to correct the item identified in this letter. Failure to do so will result in Plains being subject to additional enforcement action.#

52023061WL_Warning Letter_12202023_(23-264901)_text.pdf, page 3No reply to this letter is required. If you choose to reply in your correspondence, please refer to CPF 5-2023-061-WL. Be advised that all material you submit in response to this enforcement action is subject to being made publicly available. If you believe that any portion of your responsive material qualifies for confidential treatment under 5 U.S.C. § 552(b), along with the complete original document you must provide a second copy of the document with the portions you believe qualify for confidential treatment redacted and an explanation of why you believe the redacted information qualifies for confidential treatment under 5 U.S.C. § 552(b). Sincerely, Dustin Hubbard Director, Western Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry PHP-500 J. Luo, L. Green (#23-264901) Cliff Tholl – Senior HSE Manager (CTTholl@paalp.com)#