Empire Pipeline Company — Pipeline Special Permit

U.S. DOT/PHMSA - Letter of Decision, page 1Official PDFu.s. Department of Transportation Pipeline and Hazardous Materials Safety Administration Mr. Ronald C. Kraemer President Empire Pipeline, Inc. 6363 Main Street Williamsville, NY 14221-5887 1200 New Jersey Ave., SE Washington, DC 20590 MAY 2·t 2010 Docket No. PHMSA-2008-0213 Dear Mr. Kraemer: On August 8, 2008, Empire Pipeline, Inc. (Empire) wrote to the Pipeline and Hazardous Materials Safety Administration (PHMSA), as operator of Empire State Pipeline, requesting a waiver of compliance from PHMSA's pipeline safety regulation 49 CFR § 192.611(a) for five (5) segments on the Empire State Pipeline 24-inch natural gas transmission pipeline system in Niagara, Genesee, and Monroe Counties, New York. The regulation requires confirmation or revision of the maximum allowable operating pressure (MAOP) of a pipeline segment where the class location has changed. PHMSA is granting this special permit ( enclosure), which allows Empire to continue to operate the five (5) segments ofthe Empire State Pipeline at their current MAOP of 1440 pounds per square inch (psig). This special permit provides relief from the specified Federal pipeline safety regulations for the Empire State Pipeline and requires Empire to comply with certain conditions and limitations designed to maintain pipeline safety. PHMSA grants this special permit based on the findings set forth in the "Special Permit Analysis and Findings" document, which can be read in its entirety in Docket No. PHMSA-2008-0213 in the Federal Docket Management System (FDMS) located on the internet at www.Regulations.gov. My staff would be pleased to discuss this special permit or any other regulatory matter with you. John Gale, Director of Regulations (202-366-0434), may be contacted on regulatory matters and Alan Mayberry, Deputy Associate Administrator for Pipeline Safety (202-366-5124), may be contacted on technical matters specific to this special permit. Jeffrey D. Wiese Associate Administrator for Pipeline Safety Enclosure (Special Permit)#

U.S. DOT/PHMSA- Empire Pipeline Inc., Signed Special Permit Renewal Notice, page 1Official PDFU.S. Department ofTransportation Pipeline cmd Hazardous Materials Safety Administration 1200 New Jersey Ave, S.E. Washington, D.C. 20590 JUL 3 0 2014 Mr. Ronald C. Kraemer President Empire Pipeline, Inc. 6363 Main Street Williamsville, NY 14221-5887 Ref: Special Permit · PHMSA-2008-0213 Dear Mr. Kraemer: The Pipelme and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety hereby gives notice that special permit PHMSA-2008-0213 issued to Empire Pipeline, Inc. (Empire) on March 20, 2010, will expire on March 20, 2015. If Empire wishes to renew this special permit, the PHMSA Associate Administrator for Pipeline Safety must be notified at least !80 days prior to the expiration of the Special Permit. The procedures for renewal are outlined on the following pages. My staff would be pleased to discuss this special permit or any other regulatory matter with you. Mr. John Gale, Director of Standards and Rulemaking Division, may be contacted at 202- 366-0434 for regulatory matters, and Mr. Ken Lee, Director of Engineering and Research Division, may be contacted at 202-366-2694 for technical matters specific to the renewal of this special permit. Sincerely, A~~f~ ~ Associate Administrator for Pipeline Safety#

U.S. DOT/PHMSA- Empire Pipeline Inc., Signed Special Permit Renewal Notice, page 2The Pipeline and Hazardous Materials Safety Administration (PHMSA) Office of Pipeline Safety (OPS) Federal Special Permit Renewal Requirements June 2014 Special permits issued with an expiration date must be renewed prior to the expiration of the special permit. Special permits requiring renewal are defined as: Special permits issued with an expiratioc date in the "limitations" section of the existing special permit. A notice of intent to renew the expiring special permit must be made at least 180 days prior to the expiration. Renewal requests sent by United States Postal Service mail, express mail, or overnight courier, must be addressed to: Tt.e Associate Administrator for Pipeline Safety Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Avenue, SE, East Building Washington, DC 20590 To expedite the delivery of the renewal application and attachments, we encourage pipeline operators to provide us with an electronic copy of the renewal application. The electronic copy renewal request must be sent by e-mail to John.Gale@dot.gov and kay.mciver@dot.gov. Please do not fax PHMSA renewal requests or documents. PHMSA may seek additional operational, integrity or environmental assessment information prior to granting any request for special permit. The renewal application must contain: (a) Special Permit: A copy of the original grant of the special permit. (b) Docket: PHMSA Docket Number of the issued special permit (c) Summary Report: A summary report that defines the following information from the issuance of the special permit to present. (i) Special Permit Number (ii) Grantee, or Pipeline Owner or Operator: 1) Parent Company: 2) Executive Contact: Mailing Address, Phone Number and e-mail address; and 3) Technical or Operational Contact: Mailing Address, Phone Number and e-mail address. (iii) Location of Special Permit: areas on the pipeline where the special permit is applicable including: diameter, mile posts, county, and state. (iv) Applicable Usage or Need of the Special Permit: original and future including applicable Federal Code sections for special permit. Empire Pipeline, Inc. - PHMSA-2008-0213 Page 2 of 4#

U.S. DOT/PHMSA- Empire Pipeline Inc., Signed Special Permit Renewal Notice, page 3( v) Annual Report: A copy of each special permit annual report generated since the issuance of the special permit (maximum of 5 reports). [Reports on file. Not needed at this time.]. (vi) Operating Pressure for Special Permit Segment: Maximum allowable operating pressure (MAOP); class location (including boundaries on aerial photography). (vii) High Consequence Areas (HCAs) for Special Permit Segment: HCA boundaries on aerial photography; (viii) Material Properties for Special Permit Segment: Pipeline material documentation for all pipe, fittings, flanges, and any other facilities included in the special permit. Material documentation for the special permit segments must include applicable: 1) Pipe: diameter, wall thickness, grade, and seam type; pipe coating including girth weld coating; 2) MechanicaUChemical Properties: yield strength, tensile strength, and chemical composition. (Operator may furnish an example mill test report (mechanical and chemical properties) for the special permit segment pipe. PHMSA will determine the need for complete documents based upon the example mill test report and original submittals.); 3) Test Pressure: Hydrostatic test pressure and date including pressure and temperature charts and logs and any known test failures; (Operator may contact PHMSA to determine if charts and logs are needed based upon original submittal.) (ix) In-line inspection (ILl) for Special Permit Segments and Areas: ILl survey summary results from all ILl tools used on the special permit segments and areas during the previous four (4) years, summary to include any actionable anomalies or dents found, and all cracks in pipe body, pipe seam or girth weld. (x) Integrity Data Integration Summary for Special Permit: Integrity data integration summary must be based upon threats as identified in Condition 4 (in accordance with 49 CFR §§ 192.937 (a) and (b), 192.917, and 192.939), as applicable, for the past four ( 4) years including: class location, HCAs, hydrostatic test pressure including any known test failures -if tests were conducted; casings (any shorts); any in-service ruptures or leaks; close interval survey (CIS) results; depth of cover surveys; rectifier readings; test point survey readings; AC/DC interference surveys; pipe coating SJlrveys; pipe coating and anomaly evaluations from pipe excavations and pipe exposures from encroachments; stress con·osion cracking, selective seam weld corrosion and hard spot excavations and findings. (xi) In-service incidents for Special Permit Segments and Areas: Any in- service ruptures or leaks including repair type and failure investigation findings; aerial photography of area, within the special permit segment and special permit inspection area, if applicable. Empire Pipeline, Inc.- PHMSA-2008-0213 Page 3 of 4#

U.S. DOT/PHMSA- Empire Pipeline Inc., Signed Special Permit Renewal Notice, page 4(xii) Special Permit Conditions: any suggested condition modifications required to maintain safety and the environment. (xiii) Summary Report: The summary report must demonstrate that the special permit is still consistent with pipeline safety and show that the operations and management plan (O&M Plan) has periodic and systemic integrity assessment and remedial measures to ensure that there is an ongoing program to locate, assess, and remediate safety threats. (d) Renewals: For renewal requests made at least 180 days before the special permit expires and that conform to the requirements of the renewal process, the special permit will continue to be in effect and not expire until PHMSA takes a final administrative action on the renewal. After all documents are reviewed and the Associate Administrator, Office of Pipeline Safety, determines that the Special Permit is consistent with federal regulations for public safety and the environment, a letter of decision and an updated special permit will be mailed to the operator. The Special Permit letter of decision, conditions, and findings and analysis will be placed in the corresponding docket at www .regulations.gov. (e) State Partners: State partners in the affected state/swill be notified of the renewal application. A Federal Register Notice of the renewal application will be initiated for a 30·day comment period. (f) Environmental Assessment: An Environmental Assessment (EA) may not be needed if one was conducted and noticed for the original special permit. If an EA must be conducted, then the renewal process will be lengthier. The operator will be responsible for developing and submitting the EA documents. PHMSA will review the EA for conformity to National Environmental Policy Act and federal pipeline regulations. The EA will be publicized in the Federal Register for a 30-day comment period. (g) Denial of renewal request: If the Special Permit request is denied, the denial will be handled in accordance with the procedures outlined in 49 CFR § 190.341. Empire Pipeline, Inc.- PHMSA-2008-0213 Page 4 of 4#

U.S. DOT/PHMSA - CORRECTION letter of date of Empire Pipeline Company SP Renewal 2015 svn kmc.docx, page 1Official PDFU.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Ave, S.E. Washington, D.C. 20590 AUG 12 2014 Mr. Ronald C. Kraemer President Empire Pipeline, Inc. 6363 Main Street Williamsville, NY 14221-5887 Ref: Correction to issuance and renewal date of Special Permit - PHMSA-2008-0213 Dear Mr. Kraemer: In keeping with a conversation between Ms. Kay Mciver of PHMSA staff and Jim Sharpless of Empire Pipeline, Inc., this letter is being sent to give notice and correct the issued and expiration date of Special Permit, PHMSA-2008-0213. The Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety hereby gives notice that special permit PHMSA-2008-0213 issued to Empire Pipeline, Inc. (Empire) on May 20, 2010, will expire on May 20, 2015. If Empire wishes to renew this special permit, the PHMSA Associate Administrator for Pipeline Safety must be notified at least 180 days prior to the expiration of the Special Permit. The procedures for renewal are outlined on the following pages. My staff would be pleased to discuss this special permit or any other regulatory matter with you. Mr. Kenneth Lee, Director of Engineering and Research Division, may be contacted at 202-366-2694 for technical matters. I can be contacted at 202-366-0434 for regulatory matters specific to the renewal of this special permit. Director, Standards and Rulemaking#

U.S. DOT/PHMSA - CORRECTION letter of date of Empire Pipeline Company SP Renewal 2015 svn kmc.docx, page 2AUG 12 2014 The Pipeline and Hazardous Materials Safety Administration (PHMSA) Office of Pipeline Safety (OPS) Federal Special Permit Renewal Requirements June 2014 Special permits issued with an expiration date must be renewed prior to the expiration of the special permit. Special permits requiring renewal are defined as: Special permits issued with an expiration date in the "limitations" section of the existing special permit. A notice of intent to renew the expiring special permit must be made at least 180 days prior to the expiration. Renewal requests sent by United States Postal Service mail, express mail, or overnight courier, must be addressed to: The Associate Administrator for Pipeline Safety Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Avenue, SE, East Building Washington, DC 20590 To expedite the delivery of the renewal application and attachments, we encourage pipeline operators to provide us with an electronic copy of the renewal application. The electronic copy renewal request must be sent by e-mail to John.Gale@dot.gov and kay.mciver@dot.gov. Please do not fax PHMSA renewal requests or documents. PHMSA may seek additional operational, integrity or environmental assessment information prior to granting any request for special permit. The renewal application must contain: (a) Special Permit: A copy of the original grant of the special permit. (b) Docket: PHMSA Docket Number of the issued special permit (c) Summary Report: A summary report that defines the following information from the issuance of the special permit to present. (i) Special Permit Number (ii) Grantee, or Pipeline Owner or Operator: 1) Parent Company: 2) Executive Contact: Mailing Address, Phone Number and e-mail address; and 3) Technical or Operational Contact: Mailing Address, Phone Number and e-mail address. Empire Pipeline, Inc.- PHMSA-2008-0213 Page 2 of 4#

U.S. DOT/PHMSA - CORRECTION letter of date of Empire Pipeline Company SP Renewal 2015 svn kmc.docx, page 3AUG 12 2014 (iii) Location of Special Permit: areas on the pipeline where the special permit is applicable including: diameter, mile posts, county, and state. (iv) Applicable Usage or Need of the Special Permit: original and future including applicable Federal Code sections for special permit. (v) Annual Report: A copy of each special permit annual report generated since the issuance of the special permit(maximum of 5 reports). [Reports on file. Not needed at this time.]. (vi) Operating Pressure for Special Permit Segment: Maximum allowable operating pressure (MAOP); class location (including boundaries on aerial photography). (vii) High Consequence Areas (HCAs) for Special Permit Segment: HCA boundaries on aerial photography; (viii) Material Properties for Special Permit Segment: Pipeline material documentation for all pipe, fittings, flanges, and any other facilities included in the special permit. Material documentation for the special permit segments must include applicable: 1) Pipe: diameter, wall thickness, grade, and seam type; pipe coating including girth weld coating; 2) Mechanical/Chemical Properties: yield strength, tensile strength, and chemical composition. (Operator may furnish an example mill test report (mechanical and chemical properties) for the special permit segment pipe. PHMSA will determine the need for complete documents based upon the example mill test report and original submittals.); 3) Test Pressure: Hydrostatic test pressure and date including pressure and temperature charts and logs and any known test failures; (Operator may contact PHMSA to determine if charts and logs are needed based upon original submittal.) (ix) In-line inspection (ILl) for Special Permit Segments and Areas: ILl survey summary results from all ILl tools used on the special permit segments and areas during the previous four ( 4) years, summary to include any actionable anomalies or dents found, and all cracks in pipe body, pipe seam or girth weld. (x) Integrity Data Integration Summary for Special Permit: Integrity data integration summary must be based upon threats as identified in Condition 4 (in accordance with 49 CFR §§ 192.937 (a) and (b), 192.917, and 192.939), as applicable, for the past four (4) years including: class location, HCAs, hydrostatic test pressure including any known test failures -if tests were conducted; casings (any shorts); any in-service ruptures or leaks; close interval survey (CIS) results; depth of cover surveys; rectifier readings; test point survey readings; AC/DC interference surveys; pipe coating surveys; pipe coating and anomaly evaluations from pipe excavations and pipe exposures from encroachments; stress corrosion cracking, selective seam weld corrosion and hard spot excavations and findings. Empire Pipeline, Inc.- PHMSA-2008-0213 Page 3 of 4#

U.S. DOT/PHMSA - CORRECTION letter of date of Empire Pipeline Company SP Renewal 2015 svn kmc.docx, page 4AUG 12 10\~ (xi) In-service incidents for Special Permit Segments and Areas: Any in- service ruptures or leaks including repair type and failure investigation findings; aerial photography of area, within the special permit segment and special permit inspection area, if applicable. (xii) Special Permit Conditions: any suggested condition modifications required to maintain safety and the environment. (xiii) Summary Report: The summary report must demonstrate that the special permit is still consistent with pipeline safety and show that the operations and management plan (O&M Plan) has periodic and systemic integrity assessment and remedial measures to ensure that there is an ongoing program to locate, assess, and remediate safety threats. (d) Renewals: For renewal requests made at least 180 days before the special permit expires and that conform to the requirements of the renewal process, the special permit will continue to be in effect and not expire until PHMSA takes a final administrative action on the renewal. After all documents are reviewed and the Associate Administrator, Office of Pipeline Safety, determines that the Special Permit is consistent with federal regulations for public safety and the environment, a letter of decision and an updated special permit will be mailed to the operator. The Special Permit letter of decision, conditions, and findings and analysis will be placed in the corresponding docket at www .regulations.gov. (e) State Partners: State partners in the affected state/s will be notified of the renewal application. A Federal Register Notice of the renewal application will be initiated for a 30-day comment period. (f) Environmental Assessment: An Environmental Assessment (EA) may not be needed if one was conducted and noticed for the original special permit. If an EA must be conducted, then the renewal process will be lengthier. The operator will be responsible for developing and submitting the EA documents. PHMSA will review the EA for conformity to National Environmental Policy Act and federal pipeline regulations. The EA will be publicized in the Federal Register for a 30-day comment period. (g) Denial of renewal request: If the Special Permit request is denied, the denial will be handled in accordance with the procedures outlined in 49 CFR § 190.341. Empire Pipeline, Inc.- PHMSA-2008-0213 Page 4 of 4#

Empire Pipeline - Annual Report(05-18-18), page 1Official PDFempire Pipeline A National Fuel Gas Company Ronald C. Kraemer President May 18, 2018 Robert Burrough, Director PHMSA Pipeline Safety Eastern Region Office 820 Bear Tavern Road, Suite 103 West Trenton, NJ 08628 RE: Empire State Pipeline DOCKET NO. PHMSA-2008-0213 Gentlemen: On May 20, 2010, the Pipeline and Hazardous Materials Safety Administration ("PHMSA") granted Empire Pipeline, Inc. ("Empire") a special permit in the proceeding referenced above allowing Empire to continue to operate five segments of its pipeline system at their current MAOP of 1440 pounds per square inch (the "Special Permit"). On May 20, 2015, PHMSA renewed and modified the Special Permit for a term ending May 20, 2020. On March 28, 2017, PHMSA again modified the Special Permit to add a sixth special permit segment. Pursuant to Condition 15 to the Special Permit as renewed and modified, attached is Empire's eighth annual report. Questions regarding this submission should be directed to the undersigned at (716) 857-7536. Very truly yours, Ronald C. Kraemer, President Enclosures CC: John Gale, Director PHMSA Standards and Rulemaking Division 1200 New Jersey Ave., SE U.S. Department of Transportation Washington, DC 20590#

Empire Pipeline - Annual Report(05-18-18), page 2Kevin Speicher, Chief-Safety Section New York State Public Service Commission Department of Public Service 3 Empire State Plaza Albany, New York 12223-1350 electronically filed at regulations.gov in Docket PHMSA-2008-0213 Page 2 of 5#

Empire Pipeline - Annual Report(05-18-18), page 3EIGHTH ANNUAL REPORT OF EMPIRE PIPELINE, INC. (“EMPIRE”) DOCKET NO. PHMSA-2008-0213 ITEM A: Describe the economic benefit to the company. This should address both the costs avoided from not replacing pipe as well as the added costs of the inspection program. This should be required for initial report only. Subsequent reports will address any changes. RESPONSE: No changes to report. Although there have been no substantial changes to the physical sections of pipe that would need to be replaced were PHMSA to have not issued this special permit, the costs of contractors, materials and inspection for pipeline construction continue to rise on an annual basis. Empire does not prepare/revise this estimate annually. In summary, the economic benefit (avoided costs) continue to increase with each year that the Special Permit is in place. ITEM B: Describe how the public benefits from energy availability. This should address the benefits of avoided disruptions as a consequence of pipe replacement and the benefits of maintaining system capacity. Subsequent reports will address any changes. RESPONSE: Empire anticipates the continued and increased need for pipeline capacity on its system, as a result of the abundant Marcellus and Utica Shale Gas supplies immediately to the south of the Empire Connector Pipeline, in Pennsylvania. Pursuant to FERC certificate authorization in Docket No. CP11-493-000, Empire extended its system into Pennsylvania, providing a new source of high pressure supply (1,290 psig) into the pipeline system. The design of these facilities required the replacement of a 1.3 mile section of 1,000 psig pipeline, with pipe capable of 1,440 psig – extending eastward the 1,440 psig section of the special permit inspection area. These facilities were placed in service in November of 2011. Empire is in the process of designing additional facilities to meet requests for incremental capacity, which would likely involve Marcellus Shale gas deliveries into the Empire Pipeline at pressures up to the 1,440 psig MAOP. A reduction in MAOP would preclude Empire from developing the capacity needed to access these economic, incremental gas supplies. Please refer to Empire’s initial report for additional discussion of public benefits. ITEM C: Number of new residences, other structures intended for human occupancy and public gathering areas built within one (1) mile on either end of the special permit segments. RESPONSE: Empire meets with contractors and developers to track all proposed future developments in the vicinity of the pipeline. Since the special permit Page 3 of 5#

Empire Pipeline - Annual Report(05-18-18), page 4application was submitted on August 8, 2008, four (4) new houses or other structures have been constructed in the special permit segments. Based on GIS data, within one (1) mile on either end of each special permit segment, there are currently 307 occupied structures (BIHOs) and six (6) gathering sites within 660 feet of the pipeline center line, including 17 BIHOs and no gathering sites identified since the previous annual report. Without Empire’s compliance with the conditions of the special permit, many of the residents outside the special permit segments would not benefit from the integrity enhancements associated with this special permit such as the full pipeline ILI. Additional houses and gathering places are continually reviewed for any impact on the current class location designation for other sections of the pipeline. ITEM D: Describe any new integrity threats identified during the previous year and the results of any ILI or Direct Assessments performed (including any un- remediated anomalies over 30% wall loss; cracking found in the pipe body, weld seam or girth welds; and dents with metal loss, cracking or stress riser) during the previous year in the special permit inspection area. RESPONSE: Empire did not identify any new integrity threats in the special permit inspection area in the previous 12 months. An External Corrosion Direct Assessment was performed in Special Permit Segment 6 in August, 2017. Empire did not identify any un-remediated anomalies over 30% wall loss; cracking found in the pipe body, weld seam or girth welds; nor dents with metal loss, cracking or a stress riser. ITEM E: Any reportable incident, any leak normally indicated on the DOT Annual Report and all repairs on the pipeline that occurred during the previous year in the special permit inspection area. RESPONSE: There were no reportable incidents or leaks on the pipeline in the special permit inspection area during the previous 12 months. ITEM F: Any ongoing damage prevention initiatives affecting the special permit inspection area and a discussion of the success of the initiatives. RESPONSE: Excavation, use of augers, directional drilling, logging and other earth moving activities are common examples of third party activities that could lead to damage to transmission pipelines. Empire’s damage prevention programs, including participation in a One Call System and public education, reduce the risk exposure to the activities of outside contractors, farmers, landowners, public works, other utilities or the operator that can result in pipeline damage. Empire sponsored five (5) New York Dig Safely Excavation Safety Seminars in an effort to reach out to additional contractors in the operating area during 2018. Locations of the Empire Pipeline at all roads and railroads are marked as required in 49 CFR 192.707. The line’s position is flagged/marked for anyone notifying Dig Safely New York of their intent to excavate or perform construction in the vicinity of the pipeline. Empire personnel stand by for all excavations within 25 feet of the pipeline. Page 4 of 5#

Empire Pipeline - Annual Report(05-18-18), page 5Hand excavation is required within 24 inches of the line. Bi-annually, all owners and occupants of property within 660 feet of the pipeline receive a pamphlet describing the pipeline, safety considerations, and numbers to call with any questions or concerns. Area contractors and first responders, such as fire and police departments, are also offered training each year through a third-party contractor, and beginning in May 2017 National Fuel and Empire began offering a seven-part, self-directed, interactive, online training program that provides emergency response personnel with the information they need to safely identify and respond to incidents that involve natural gas pipelines and other natural gas facilities. Aerial and foot patrols are used to monitor encroachment and construction activity along the pipeline. The New York Public Service Commission (as agent for PHMSA) conducted a special permit audit during June 2012 and reviewed Empire’s damage prevention program for compliance. More recently, a PHMSA audit of the Empire Pipeline was conducted in July 2014, including a review of Empire’s damage prevention program. Previous inspections of the operation and maintenance of the Empire Pipeline have confirmed Empire’s regulatory compliance. There are no outstanding safety issues. ITEM G: Any mergers, acquisitions, transfers of assets, or other events affecting the regulatory responsibility of the company operating the pipeline. RESPONSE: There have been no mergers, acquisitions, transfers of assets, or other events affecting the regulatory responsibility of Empire. Page 5 of 5#

Empire signed 2020-2030 LOD, page 1Official PDFU.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Avenue, SE Washington, DC 20590 April 24, 2020 Mr. Ronald C. Kraemer President Empire Pipeline, Inc. 6363 Main Street Williamsville, New York 14221-5887 Ref: Special Permit Renewal - May 20, 2020 to May 20, 2030 Docket No. PHMSA-2008-0213 Dear Mr. Kraemer: On November 22, 2019, pursuant to 49 Code of Federal Regulations (CFR) § 190.341, the Empire Pipeline, Inc. (Empire) applied to the Pipeline and Hazardous Materials Safety Administration (PHMSA) for the renewal of the special permit, PHMSA-2008-0213, originally issued on May 20, 2010 and renewed on May 20, 2015. On August 19, 2016, Empire applied to PHMSA for an extension of an additional segment to the special permit. On March 3, 2017, special permit segment six (6) was added and the expiration date of all segments was kept as May 20, 2020. The special permit waives compliance with 49 CFR § 192.611(a) for six (6) pipeline segments where the class location has changed from a Class 1 to a Class 3 location. The six (6) special permit segments total 10,475 feet of 24-inch diameter pipe on the Empire State Pipeline located in Genesee, Monroe, Niagara, and Wayne Counties, New York. The special permit allows Empire to continue operation of the original Class 1 pipe in Class 3 locations, subject to the conditions set forth in the special permit. On March 9, 2020, PHMSA published a Federal Register notice (85 FR 13703) announcing the special permit renewal request. The special permit renewal request letter and all other pertinent documents are available for review in Docket No. PHMSA-2008-0213 in the Federal Docket Management System located at www.regulations.gov.#

Empire signed 2020-2030 LOD, page 2One comment was submitted to the docket on April 7, 2020, stating that the counties that the six (6) pipeline segments are in are home to Iroquois tribes.1 The commenter did not object to the proposed renewal or any aspect of the proposed renewal. Instead, the commenter cited various judicial opinions resulting from Native American challenges to other government agencies dealing with pipeline construction. This special permit is for continuing the safe operation and maintenance of an existing pipeline. Furthermore, PHMSA has not received a request for tribal consultation related to this special permit renewal. PHMSA has reviewed all operational and maintenance data submitted by Empire for the special permit segments. PHMSA finds that there has been no material change in conditions and that Empire continues to meet the terms of the special permit. Based on the information provided by Empire, PHMSA has determined that renewal of the special permit would not be inconsistent with pipeline safety. Furthermore, PHMSA is modifying the special permit renewal timing interval from 5 years to 10 years in Limitation 7. The modifications to Limitation 7 are italicized and underlined below. Limitation 7: PHMSA grants this special permit for a period of no more than ten (10) years from the grant date. If Empire elects to seek renewal of this special permit, a renewal request must be submitted at least 180 days prior to expiration of the ten-year period, to the PHMSA Associate Administrator, with copies to the Director, Division of Engineering and Research, and Director, Office of Pipeline Safety, Eastern Region. PHMSA may seek additional information from Empire prior to granting a request for special permit renewal. Accordingly, pursuant to 49 CFR § 190.341, by this Order, and as outlined in the existing special permit, PHMSA grants the renewal of PHMSA-2008-0213, from May 20, 2020, through May 20, 2030, to Empire to continue its operation of the Empire State Pipeline in Genesee, Monroe, Niagara, and Wayne Counties, New York. This special permit renewal Order continues to waive compliance with certain Federal regulations in 49 CFR § 192.611(a)(1). My staff would be pleased to discuss this special permit or any other regulatory matter with you. Sentho White, Director of Engineering and Research Division, may be contacted at 202-366- 2415, for technical matters; and Robert Burrough, Director, Office of Pipeline Safety, Eastern Region may be contacted at 609-771-7809, for operational matters specific to the renewal of this special permit. Sincerely, ALAN KRAMER MAYBERRY Digitally signed by ALAN KRAMER MAYBERRY Date: 2020.04.24 15:20:19 -04'00' Alan K. Mayberry, Associate Administrator for Pipeline Safety 1 https://www.regulations.gov/searchResults?rpp=25&po=0&s=PHMSA-2008-0213 PHMSA-2008-0213 – Empire Pipeline, Inc. Special Permit Renewal - May 20, 2020 to May 20, 2030 Page 2 of 2#

U.S. DOT/PHMSA - Special Permit Analysis and Findings, page 1Official PDF1 U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION (PHMSA) Special Permit Analysis and Findings Special Permit Information: Docket Number: Pipeline Operator: Date Requested: Code Section(s): PHMSA-2008-0213 Empire Pipeline, Inc., (operator of Empire State Pipeline) August 8, 2008 49 CFR § 192.61l(a) Purpose: The Pipeline and Hazardous Materials Safety Administration (PHMSA) provides this information to describe the facts of the subject special permit application submitted by Empire Pipeline, Inc. (Empire), operator ofthe Empire State Pipeline. PHMSA also provides discussion of any relevant public comments received with respect to the application, presents the engineering and safety analysis of the special permit application, and makes findings regarding whether the requested special permit should be granted and if so under what conditions. Pipeline System Affected: This special permit request involves five (5) special permit segments along Empire's 24-inch natural gas transmission pipeline known as the Empire State Pipeline. The five special permit segments are located in Niagara, Genesee, and Monroe Counties, NY. The class location ofthe special permit segments have changed from Class 1 Locations to Class 2 Location or a Class 21 Locations to Class 3 Locations. Niagara, Genesee, and Monroe Counties, NY 1 The Class 3 segments were originally a Class I Location that was upgraded to Class 2 Location by reason of hydrostatic test in accordance with § 192.611(a).#

U.S. DOT/PHMSA - Special Permit Analysis and Findings, page 22 This special permit applies to the special permit segments defined using Empire's Survey Station Numbers. Mileposts are provided for information only. • Special Permit Segment 1 - 24-inch Empire State Pipeline mainline, approximately 730 feet in length, located in Genesee County, New York, from Survey Station 3027 + 50 to Survey Station 3034 + 80; (MP 57.33 to MP 57.49) • Special Permit Segment 2 - 24-inch Empire State Pipeline mainline, approximately 1,715 feet in length, located in Monroe County, New York, from Survey Station 4018 + 73 to Survey Station 4035 + 88; (MP 76.09 to MP 76.42) • Special Permit Segment 3 - 24-inch Empire State Pipeline mainline, approximately 1,650 feet in length, located in Monroe County, New York, from Survey Station 4483 + 10 to Survey Station 4499 + 60; (MP 84.88 to MP 85.19) • Special Permit Segment 4 - 24-inch Empire State Pipeline mainline, approximately 2,675 feet in length, located in Niagara County, New York, from Survey Station 1230 + 69 to Survey Station 1257 + 44; (MP 23.30 to MP 23.81) • Special Permit Segment 5, 24-inch Empire State Pipeline mainline, approximately, 1,760 feet in length, located in Niagara County, New York, from Survey Station 1330 + 50 to Survey Station 1348 + 10; (MP 25.19 to MP 25.54) Niagara, Genesee, Monroe, Ontario, Wayne, Cayuga, Onondaga and Oswego Counties, NY Special permit inspection area - means the area that extends 220 yards on each side of the centerline of 24" mainline along the entire length ofthe Empire State Pipeline from Mile Post 0 (NY/Canada Border) to Mile Post 157 (Phoenix, NY). The special permit inspection area is located in Niagara, Genesee, Monroe, Ontario, Wayne, Cayuga, Onondaga and Oswego Counties, NY. The total length of the special permit inspection area is approximately 157 miles. The Empire State Pipeline special permit inspection area includes the following sections: • Western Section - from Mile Post 0 in Niagara County, New York to Mile Post 90.8 in Ontario County, New York and the pipeline has an MAOP of 1440 pounds per square inch gauge (psig); and • Eastern Section - from Mile Post 90.8 in Ontario County, New York to Mile Post 157 in Oswego County, New York and the pipeline has an MAOP of 1000 psig.#

U.S. DOT/PHMSA - Special Permit Analysis and Findings, page 33 Special Permit Request Empire submitted an application to PHMSA on August 8, 2008, for a special permit seeking relief from the Federal pipeline safety regulations in 49 CFR § 192.611(a) for five (5) segments of the Empire State Pipeline where a change has occurred from a Class 1 or 2 to Class 3 Locations. As requested, this special permit would allow Empire to continue to operate the pipeline segments at their current maximum allowable operating pressure (MAOP) of 1440 psig in the Western Section and 1000 psig in the Eastern Section. The Federal pipeline safety regulations in 49 CFR § 192.611(a) require natural gas pipeline operators to confirm or revise the MAOP of a pipeline segment after a change in class location. A special permit would allow Empire to continue to operate each of the five (5) special permit segments at their existing MAOP's despite a change in class location. In its application, Empire suggested that the five (5) special permit segments be included in one separate special permit inspection area (see Empire's applicat,ion for the specific details). The special permit inspection area on the Empire State Pipeline will begin approximately 23.3 miles upstream of the beginning of the special permit segment 1 extend through the five special permit segments and end approximately 71.8 miles downstream of the ending of special permit segment 5, The total length of the special permit inspection area is approximately 157 miles. Public Notice: On January 23,2009, PHMSA posted a notice of this special permit request in the Federal Register (74 FR 4297). The request letter, Federal Register notice and all related documents are available for review in Docket No. PHMSA-2008-0213 in the Federal Docket Management System (FDMS) located on the internet at www.Regulations.gov. PHMSA did not receive any public comments on this special permit request. Analysis: Background: On June 29, 2004, PHMSA published in the Federal Register (69 FR 38948) the criteria it uses for the consideration of class location change waivers, now being granted through special permits. First, certain threshold requirements must be met for a pipeline section to be further evaluated for a class location change special permit. Second, the age and manufacturing#

U.S. DOT/PHMSA - Special Permit Analysis and Findings, page 44 process of the pipe; system design and construction; environmental, operating and maintenance histories; and integrity management program elements are evaluated as significant criteria. These significant criteria are presented in matrix form and can be reviewed in the FDMS, Docket Number PHMSA-2004-1740I. Third, such special permits may only then be granted when pipe conditions and active integrity management provide a level of safety greater than or equal to a pipe replacement or pressure reduction. Threshold Requirements: Each of the threshold requirements published by PHMSA in the June 29, 2004, FR notice is discussed below in regards to the Empire special permit petition. 1) No pipeline segments in a class location changing to Class 4 Location will be considered. This special permit request is for five segments of Empire's Empire State Pipeline where a class location change has occurred from Class 1 Location to Class 3 Location or Class 2 Location to Class 3 Location. Empire has met this requirement. 2) No bare pipe will be considered. The Empire special permit segments are coated with fusion bonded epoxy (FBE) coating. Empire has met this requirement. 3) No pipe containing wrinkle bends will be considered. There are no wrinkle bends in this special permit segment. Empire Pipeline has met this requirement. 4) No pipe segments operating above 72% of the specified minimum yield strength (SMYS) will be considered for a Class 3 special permit. This special permit segment operates at or below 72 percent SMYS. Empire has met this requirement. 5) Records must be produced that show a hydrostatic test to at least 1.25 x MAOP for class location change from Class 1 or Class 2 to Class 3 Location and 90 percent of SMYS for class location change from Class 1 to Class 3 Location. Empire Pipeline records submitted show that the Class 1 pipe (0.343") of the 24-inch Empire State Pipeline existing within the special permit segments, has been hydrostatically tested to a minimum of 1,808 psig, which is 1.25 x MAOP and 90% of SMYS for class location change from Class 1 to Class 3 Location. Pipe used in Class 1 Locations for tie-ins and road crossings is heavier wall pipe (0.4 1 2-inch and 0.494-inch), but has been tested to the same pressure as the 0.343-inch wall pipe. Empire has met these requirements. 6) In-line inspection (ILl) must have been performed with no significant anomalies identified that indicate systemic problems. The proposed special permit segment was last inspected by#

U.S. DOT/PHMSA - Special Permit Analysis and Findings, page 55 7) ILl in 2004, with no immediately actionable anomalies found. Empire has met this requirement but will need to run an ILl tool to detect dents and re-run ILl for anomalies and corrosion by September 30, 2011. The criteria for consideration of class location change waiver, now being granted through special permits, define a waiver inspection area (special permit inspection area) as up to 25 miles of pipe either side of the waiver segment (special permit segment). The special permit inspection area must be inspected according to Empire's integrity management program and periodically inspected with an in-line inspection technique. The portion of the special permit inspection area is approximately 157 miles long which is the entire length of the Empire State Pipeline. The special permit inspection area transverses from Mile Post 0 (NY/Canada border) to Mile Post 157 (Phoenix, NY) through Niagara, Genesee, Monroe, Ontario, Wayne, Cayuga, Onondaga and Oswego Counties, NY. From Mile Post 0 to 90.8 (western portion) in Niagara, Genesee, Monroe, and Ontario, NY, the Empire State Pipeline has a MAOP of 1,440 PSIG. From Mile Post 90.8 to Mile Post 157 (eastern portion) in Ontario, Wayne, Cayuga, Onondaga and Oswego Counties, NY, the Empire State Pipeline has a MAOP of 1,000 PSIG. This special permit will require Empire to incorporate each of the five special permit segments into its written integrity management program as "covered segment" in a "high consequence area" (HCA) per 49 CFR § 192.903. The special permit segments meet the threshold requirements; however additional ILl tool runs will be necessary to ensure safety and therefore will be required by the special permit conditions. Criteria Matrix: The original and supplemental data submitted by Empire for the special permit segments have been compared to the class location change special permit criteria matrix. The data fall within the probable acceptance column of the criteria matrix for all criteria except submittal of material test reports with charpy-impact toughness and performing internal line inspections within one-year after issuance of the special permit. • The five special permit segments fall in the probable acceptance column of the criteria matrix for all criteria except for: o Possible acceptance - ILl time frame - Special permit conditions will require ILL#

U.S. DOT/PHMSA - Special Permit Analysis and Findings, page 66 o Requires substantial justification - none PHMSA has determined that imposing the special permit with conditions will provide a level of safety greater than or equal to pipe replacement or pressure reduction for this area. Operational Integrity Compliance: PHMSA reviewed this special permit request to ensure that integrity threats to the pipeline in the special permit segment and special permit area are addressed in the operator's operations and management plan (O&M Plan) to provide a systematic program to review and remediate the pipeline for safety concerns. PHMSA will require additional operational integrity review and remediation requirements through the special permit. The pipeline operational integrity requirements are to ensure that the operator has an ongoing program to locate and remediate safety threats. These threats to integrity and safety include the pipe coating quality, cathodic protection effectiveness, operations damage prevention program for third party damage, weld seam and girth weld integrity, anomalies in the pipe steel, and material and structures either along or near the pipeline that could cause the cathodic protection system to be ineffective. PHMSA carefully designed a comprehensive set of conditions that Empire will be required to meet under the special permit. Among other things, the conditions include: • A close interval survey to determine the effectiveness of the cathodic protection system must be performed within the special permit inspection area and all areas with inadequate cathodic protection must be remediated. • A coating survey to determine the quality of the pipe coating must be conducted and in- effective coating areas must be required to be remediated. • Stress corrosion cracking (SCC) surveys on the pipeline will be required to ensure that the pipe steel does not contain cracks due to the effects of high and near neutral pH SCC. • The latest methods of damage prevention must be incorporated by the operator, such as the best practices of the Common Ground Alliance (CGA) within the special permit inspection areas. • Interference currents from electric transmission lines and other interfering structures in the special permit inspection areas must be identified, controlled and mitigated by conducting surveys and installing grounding systems where required.#

U.S. DOT/PHMSA - Special Permit Analysis and Findings, page 77 • An analysis of pipeline field coated girth welds that could have shielding coatings that could cause corrosion ofthe pipe steel must be undertaken in the special permit segments and in-line inspection logs that indicate 30% corrosion indications on shielding or unknown coatings must be exposed and evaluated. • Anomalies and dents in the pipeline must be repaired, based upon the special permit repair criteria. • Girth welds in the special permit segments must have been inspected to a non destructive test plan during construction, or a quality review and remediation program must be implemented by the pipeline operator. • All shorted casing at road crossings and railroad crossings in the special permit segments (either metallic or electrolytic) must be cleared to prevent corrosion. • Pipeline longitudinal seams within the special permit inspection area must have an engineering analysis to determine if there are any threats and remediated, if integrity threats are determined. • Periodic close interval surveys and in-line inspection surveys (pipeline internal surveys to determine corrosion in the pipeline) must be performed on the special permit segments at the applicable reassessment intervals. • In-line tool (ILl) inspections must be conducted through the five special permit segments and special permit inspection area by September 30, 2011 of the date of issuance of this special permit and remediate any findings in accordance with the 49 CFR Part 192, Subpart 0; § 192.485; and the conditions of this special permit. Empire must also remediate within nine (9) months of grant of this special permit all anomalies or dents that does not meet Condition 20 of the Special permit based upon existing ILl results from high resolution MFL and caliper/geometry tools ran in August and September, 2004. PHMSA has determined that imposing these conditions (along with the remainder of the conditions set forth in the special permit) will ensure that granting the special permit will not be inconsistent with pipeline safety. Past Enforcement History - 2000 through 2009:#

U.S. DOT/PHMSA - Special Permit Analysis and Findings, page 88 A review of PHMSA enforcement actions against Empire from 2000 through 2009 shows the following enforcement actions against the companies. The enforcement actions place Empire in the "possible acceptance category" for a special permit grant. Empire Pipeline, Inc. is owned by the National Fuel Gas Company. Company assets are distributed among the following 4 business segments: Empire Pipeline, Inc. OPID #31592 National Fuel Gas Distribution Corporation OPID #13061 (PA) & 13062 (NY), National Fuel Gas Supply Corporation OPID #13063, and Seneca Resources Corporation OPID #18201. Below is a listing of the Empire State Pipeline enforcement matters of all types in all PHMSA Regions: • Eastern Region - 1 matter • Notice of Probable Violation's (NOPV) - 0 • States where violations have occurred: New York Empire State Pipeline's regulatory enforcement history from 2000 to 2009 indicates one non- compliance issue as shown above with 49 CFR 192 and no outstanding corrective action orders (CAO). The single enforcement item that includes 9 notices of amendment was issued in 2005 in the course of a Part 192, Subpart 0, Integrity Management Plan inspection with the National Fuel Gas Company which covered the National Fuel Gas Distribution Corporation, the National Fuel Gas Supply Corporation and Empire Pipeline, Inc. Based upon Empire State Pipeline's compliance history, PHMSA concludes that Empire State Pipeline's compliance history will not require additional assurances to ensure full compliance with the Special Permit conditions. PHMSA has determined that imposing the special permit conditions will ensure that granting the special permit will not be inconsistent with pipeline safety. Findings: Based on the information submitted by Empire and PHMSA's analysis of the technical, operational, and safety issues, and given the additional measures required and conditions that will be imposed, PHMSA finds that granting this special permit to Empire to operate five (5)#

U.S. DOT/PHMSA - Special Permit Analysis and Findings, page 99 segments of the Empire State Pipeline, a natural gas transmission pipeline, at the current MAOP where a change in class location has occurred from a Class 1 location to a Class 3 location is consistent with pipeline safety. Completed in Washington DC on: ------'U..,.."lf---31)-:I-I,eh 2 nlJl-l1tBfJ------ Prepared By: PHMSA - Engineering and Emergency Support#

U.S.DOT/PHMSA - Empire Pipeline, Inc. - Letter of Decision for Renewal of SP 2015-2020, page 1Official PDFU.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Avenue, SE Washington, D.C. 20590 MAY 2 0 2015 Mr. Ronald C. Kraemer President Empire Pipeline, Inc. 6363 Main Street Williamsville, New York 1422 1-5887 Ref: PHMSA-2008-0213 Special Permit Renewal May 20, 2015 to May 20, 2020 Dear Mr. Kraemer: By letter dated August 12, 2014, the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), notified Empire Pipeline, Inc. (Empire), operator of the Empire State Pipeline that Special Permit PHMSA-2008-02 13 would expire on May 20, 201 5, unless renewed. By letter dated November 20, 2014, Empire applied for a renewal of the special permit and requested an 890 foot extension of special permit segment fi ve (5). On February 4. 20 15, Empire provided operational documentation to j ustify the special permit renewal and submitted additional integrity information concerning the 890 foot extension request in special permit segment five (5). On February 4, 2015, PHMSA published a Federal Register notice concerning this special permit renewal (80 FR 6 174 7). No public comments were received. The special permit renewal request letter and all other pertinent documents are available fo r review in Docket No. PHMSA-2008-0213, in the Federal Docket Management System (FDMS) located at www .Regulations.gov. This special permit renewal waives compliance with 49 CFR § 192.6 11 for five (5) natural gas transmission segments of the 24-inch Empire State Pipeline, where the pipeline class location has changed from Class 1 to a Class 3 location. These pipeline segments are located in Niagara. Genesee. and Monroe Counties, New York. PHMSA has reviewed all operational and maintenance data submitted by Empire for the special permit renewal. PHMSA finds that Empire continues to meet the terms of the special permit and has updated the special permit where there have been material changes in the special permit segments, conditions, and limitations. PHMSA has added Condition 24(t) (Data Integration) and Condition 24(g) (Pipeline System Flow Reversals) to outline requirements for integrity data integration and possible future flow reversals in the special permit segments.#

U.S.DOT/PHMSA - Empire Pipeline, Inc. - Letter of Decision for Renewal of SP 2015-2020, page 2Based on the information provided by Empire. PHMSA has determined that renewal of the special permit and extension of special permit segment five (5) would not be inconsistent with pipeline safety. Accordingly, by this Order (enclosed), and described in the special permit renewal, PHMSA grants to Empire Pipeline, Inc., a special permit renewal (PHMSA-2008-0213), to operate from May 20, 2015, through May 20, 2020, for the Empire State Pipeline system described in the special permit where Class 1 to Class 3 location changes have occurred. This special permit renewal Order waives compliance with certain Federal regulations in 49 CFR § 192.611 for five (5) segments of the 24-inch Empire State Pipeline located in Niagara, Genesee, and Monroe Counties, New York. My staff would be pleased to discuss this special permit or any other regulatory matter with you. Mr. John Gale, Director, Division of Standards and Rulemaking, may be contacted at 202-366-0434 on regulatory matters . Mr. Ken Lee. Director, Division of Engineering and Research, may be contacted at 202-366-2694, for technical matters and Mr. Byron Coy, Director, OPS. Eastern Region, may be contacted at 609-989-2 180, for operational matters specific to the renewal and ongoing operations of this special permit. Jeffrey D. Wiese Associate Administrator for Pipeline Safety Enclosure: Special Permit Renewal Order (PHMSA-2008-02 13) PHMSA-2008-02 13 Empire Pipeline, Inc.- Page 2 of2#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 1Official PDFU.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION SPECIAL PERMI RENEWAL M~Y 2 0 2015 Docket Number: Pipeline Operator: Original Date Requested: Original Special Permit: Renewal Period: Code Section(s): PHMSA- 2008-0213 Empire Pipeline, Inc. 1 ., (operator of Empire State Pipeline) August 8, 2008 May 20,2010 May 20, 2015 through May 20, 2020 49 CFR § 192.611 Renewal of Special Permit: By this order, subject to the terms and conditions set forth below the Pipeline and Hazardous Materials Safety Administration (PHMSA) grants this special permit renewal from May 20, 2015, to May 20, 2020, to Empire Pipeline, Inc (Empire), operator of the Empire State Pipeline, waiving compliance from 49 CFR § 192.611(a) for five (5) natural gas transmission pipeline segments in Niagara, Genesee, and Monroe Counties, New York as described below. This special permit renewal adds an extension of 890 feet to special permit segment 5 as described below and makes minor modifications to several Special Permit Conditions and the Limitations of the special permit. Special Permit Segments and Inspection Area: Niagara. Genesee. Monroe. Ontario. Wayne. Cayuga. Onondaga. and Oswego Counties. New York PHMSA waives compliance from 49 CFR § 192.611 (a) for five (5) natural gas transmission pipeline segments on the 24-inch Empire State Pipeline, where a change has occurred from a Class 1 Location to a Class 3 Location and a Class 2 Location to a Class 32 Location in Niagara, Genesee, and Monroe Counties, New York. The Federal pipeline safety regulations in 49 CFR § 192.611 (a) require natural gas pipeline operators to confirm or revise the maximum allowable operating pressure (MAOP) of a pipeline segment after a change in class location. This special permit allows Empire to continue to operate each of the five (5) special permit segments at its current maximum allowable operating pressure (MAOP) of 1440 pounds per square inch gauge 1 Empire Pipeline, Inc., is owned by the National Fuel Gas Company. 2 The Class 3 location special permit segments were originally Class I locations that were upgraded to Class 2 location in accordance with § 192.61 I (a) hydrostatic test.#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 2Page 2 of 22 (psig) for the 24-inch Empire State Pipeline. This special permit applies to the five (5) special permit segments defined as follows using the Empire State Pipeline survey stations (SS) and mile post (MP) references as follows: • • • • • Special Permit Segment 1- 24-inch Empire State Pipeline mainline, approximately 730 feet in length, located in Genesee County, NY from Survey Station 3027 + 50 to Survey Station 3034 + 80; (MP 57.33 to MP 57.49) Special Permit Segment 2- 24-inch Empire State Pipeline mainline, approximately 1,715 feet in length, located in Monroe County, NY from Survey Station 4018 + 73 to Survey Station 4035 + 88; (MP 76.09 to MP 76.42) Special Permit Segment 3 - 24-inch Empire State Pipeline mainline, approximately 1 ,650 feet in length, located in Monroe County, NY from Survey Station 4483 + 10 to Survey Station 4499 + 60; (MP 84.88 to MP 85.19) Special Permit Segment 4- 24-inch Empire State Pipeline mainline, approximately 2,675 feet in length, located in Niagara County, NY from Survey Station 1230 + 69 to Survey Station 1257 + 44; (MP 23.30 to MP 23.81) Special Permit Segment 5, 24-inch Empire State Pipeline mainline, approximately, 2,650 feet in length, located in Niagara County, NY from Survey Station 1330 + 50 to Survey Station 1357 + 00; (MP 25.19 to MP 25.703) This special permit applies to the special permit inspection area defined as follows using the 24-inch Empire State Pipeline mainline mile post stationing as a reference. Special permit inspection area - means the area that extends 220 yards on each side of the 24-inch pipeline centerline along the entire length of the Empire State Pipeline from: • Mile Post 0 (New York/Canada border) to Mile Post 157 (Phoenix, New York) totaling about 157 miles in length. The special permit inspection area is located in Niagara, Genesee, Monroe, Ontario, Wayne, Cayuga, Onondaga, and Oswego Counties, NY. The special permit inspection area begins at Mile Post 0 located at the start of the Empire State Pipeline at the Canada/U.S. international border and the Chippawa Channel of the Niagara River and ends at Mile Post 157 at the end of the Empire State Pipeline located in Oswego County, New York. The total length of the special permit inspection 3 Empire on No vember 20, 2014, requested a special permit segment 5 extension from Station 1348+ I 0 to 1357+00 (MP 25.54 to MP 25.70) of 890 feet. Special permit segment 5 is located in the Town of Lockport, Niagara County, New York, east of Old Beattie Road. Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20,2010 to May 20, 2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 3Page 3 of22 area is approximately 157 miles. The Empire State Pipeline special permit inspection areas include the following sections: • Western Section- from Mile Post 0 in Niagara County, New York to Mile Post 90.8 in Ontario County, New York and the pipeline has an MAOP of 1440 psig; and • Eastern Section - from Mile Post 90.8 in Ontario County, New York to Mile Post 157 in Oswego County, New York and the pipeline has an MAOP of 1000 psig. PHMSA grants this special permit based on the findings set forth in the "Special Permit Analysis and Findings " document, which can be read in its entirety in Docket No. PHMSA-2008- 0213 in the Federal Docket Management System (FDMS) located on the internet at www.Regulations.gov. Conditions: PHMSA grants this special permit subject to the following conditions: I) Maximum Allowable Operating Pressure (MAOP): Empire must continue to operate the 24-inch Empire State Pipeline five (5) special permit segments at or below their existing MAOP as follows: • Western Section - from Mile Post 0 in Niagara County, New York to Mile Post 90.8 in Ontario County, New York- MAOP 1440 psig; and • Eastern Section- from Mile Post 90.8 in Ontario County, New York to Mile Post 157 in Oswego County, New York - MAOP of 1000 psig. 2) Integrity Management Program: Empire must incorporate each of the five (5) special permit segments into its written integrity management program (IMP) as a "covered segment" in a .. high consequence area (HCA) " in accordance with§ 192.903, except for the reporting requirements contained in § 192.945. Empire need not include the special permit segments described in this special permit in its IMP baseline assessment plan unless those areas meet the conditions of an HCA in accordance with § 192.905. Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20,2010 to May 20,2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 4Page 4 of22 3) Close Interval Surveys: Empire must perform a close interval survey (CIS) of the 24-inch Empire State Pipeline along the entire length of the special permit inspection areas4 no later than one (I) year after the grant of this special permit and remediate any areas of inadequate cathodic protection. A CIS and remediation need not be performed, if Empire has performed a CIS and remediation on the 24-inch Empire State Pipeline along the entire length of all special permit inspection areas less than four years prior to the grant of this special permit. If factors beyond Empire's control prevent the completion ofthe CIS and remediation within one (1) year, a CIS and remediation must be completed as soon as practicable and a letter justifying the delay and providing the anticipated date of completion must be submitted to the Director, PHMSA Eastern Region5 no later than one (1) year after the grant of this special permit. 4) Close Interval Surveys- Reassessment Interval: Empire must perform periodic CIS of the special permit segments at the applicable reassessment interval(s) for a "covered segments .. determined in concert and integrated with in-line inspection (ILl) in accordance with 49 CFR 192 Subpart 0 reassessment intervals as contained in 49 CFR §§ 192.937 (a) and (b), 192.917, and 192.939, not to exceed a seven (7) year reassessment interval. 5) Coating Condition Surveys: Within one (1) year of the grant of this special permit Empire must perform a Direct Current Voltage Gradient (DCVG) survey or an Alternating Current Voltage Gradient (ACVG) survey of each special permit segment to verify the pipeline coating conditions and must then remediate any integrity issues in the special permit segments. A DCVG or ACVG survey and remediation need not be performed on special permit segments if Empire has performed a DCVG or ACVG and remediation in accordance with this special permit condition on the 24-inch Empire State Pipeline along the entire length of the special permit inspection area less than four years prior to the grant of this special permit. Empire must remediate any damaged coating indications found during these assessments that are classified as moderate (i.e. 35% IR and above for DCVG or 50 dBjlV and above for ACVG) or severe based on NACE International Recommended Practice 0502-2002, ··Pipeline External Corrosion Direct Assessment ~ Each condition that requires Empire to perform an action with respect to the Special Permit Inspection Areas shall also require Empire to perform that action on all Special Permit Segments within such Areas. 5 In the case of any Special Permit condition that requires Empire to provide documentation to the PHMSA Region, Empire must also send a copy of such documentation to the appropriate state authorities, in states that have interstate agent agreements with PHMSA. Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20,2010 to May 20,2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 5Page 5 of22 Methodology ", (NACE RP 0502-20026 ) . A minimum oftwo coating survey assessment classifications must be excavated, classified and/or remediated per each survey crew per each time the survey is performed. If factors beyond Empire' s control prevent the completion of the DCVG or ACVG survey and remediation within one (1) year, a DCVG or ACVG survey and remediation must be performed as soon as practicable and a letter justifying the delay and providing the anticipated date of completion must be submitted to the Director, PHMSA Eastern Region no later than one (1) year after the grant of this special permit. 6) Stress Corrosion Cracking Direct Assessment: Empire must evaluate the 24-inch Empire State Pipeline for stress corrosion cracking (SCC) as follows: a) Empire must perform a stress corrosion cracking direct assessment (SCCDA) or other appropriate assessment method for SCC [such as pressure test or ILl with a crack detection tool] of the 24-inch Empire State Pipeline along the entire length of the special permit inspection area according to the requirements of§ 192.929 and/or NACE SP 0204-2008 no later than one ( 1) year after of the grant of this special permit. The SCCDA or other approved method must address both high pH SCC and near neutral pH SCC. A SCCDA need not be performed if Empire has performed a SCCDA of the 24-inch Empire State Pipeline along the entire length of the special permit inspection area less than four years prior to the grant of this special permit. If factors beyond Empire's control prevent the completion of the SCCDA survey and remediation within one (1) year, a SCCDA and remediation must be performed as soon as practicable and a letter justifying the delay and providing the anticipated date of completion must be submitted to the Director, PHMSA Eastern Region no later than one (l) year after the grant of this special permit. [Empire may eliminate this Condition 6 (a), provided Empire provides an engineering assessment showing that the pipeline does not meet the criteria for either near neutral and high pH SCC per the applicable edition of the American Society of Mechanical Engineers Standard B31.8S, "Managing System Integrity of Gas Pipelines " (ASME B31.8S) Appendix A3, or NACE SP 0204-2008, "Stress Corrosion Cracking (SCC) Direct Assessment Methodology", Section 1.2.1.1 and 1.2.2] 6 When PHMSA adopts a revised edition of a referenced NACE International or ASME standard into 49 CFR Part 192, the referenced requirements of those revised standards are automatically incorporated into these special permit conditions. Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20,2010 to May 20,2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 6Page 6 of22 b) If the threat ofSCC exists as determined in Condition 6 (a) and when the Empire State Pipeline 24-inch mainline is exposed for any reason in the special permit inspection area and the coating has been identified as poor during the pipeline examination, then Empire must directly examine the pipe for SCC using an accepted industry detection practice such as dry or wet magnetic particle tests. Poor coating is a coating that has become damaged and is losing adhesion to the pipe which is shown by falling off the pipe, is porous, has pin holes, and/or shields the cathodic protection. Visual inspection is not sufficient to determine 'poor coating' or damaged coating, and it is expected that a holiday detection test at the correct voltage will be performed. Empire must keep coating records of all excavation locations in the special permit inspection area to demonstrate the coating condition. 7) Reporting of Pipe and Coating Remediation: Empire must submit the DCVG or ACVG, CIS and SCCDA [or other PHMSA approved methods of determining SCC] findings including remediation actions in a written report to the Director, PHMSA Eastern Region, no later than one ( 1) year after the grant of this special permit. 8) O&M Manual- In-Line Inspection and Reassessment Intervals: Empire must amend applicable sections of its operations and maintenance (O&M) manual(s) to incorporate the inspection and reassessment intervals by in-line inspection (ILl) including both high resolution magnetic flux leakage metal loss tools (high resolution MFL) and geometry tools of the 24-inch Empire State Pipeline along the entire length of the special permit inspection area at a frequency consistent with 49 CFR Part 192, Subpart 0 , but not to exceed a seven (7) year reassessment interval7 . [Deformation tools with +/- 1% accuracy may be considered as a replacement for geometry tools.] 9) O&M Manual- CIS Inspection and Reassessment Intervals: Empire must amend applicable sections of its O&M manual(s) to require the CIS inspection and reassessment intervals of the 24- inch Empire State Pipeline special permit segments at a frequency consistent with 49 CFR Part 192, Subpart 0, but not to exceed a seven (7) year reassessment interval. 7 If § I 92.939(a) integrity management reassessment interval should change from seven (7) years to some other reassessment interval under eight (8) years, Empire may use that reassessment interval instead of seven (7) years where applicable in these special permit conditions. Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20,2010 to May 20, 2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 7Page 7 of 22 I 0) In-Line Inspection Initial Assessment: Empire must perform ILl assessments on the 24-inch Empire State Pipeline from Canada Mile Post (MP) 0 to Mendon MP 86 by August 3 1, 20 11 , and from Mendon MP 86 to Phoenix MP !57 by September 30, 201 I. Subsequent ILl assessments of the 24-inch Empire State Pipeline along the entire length of the special permit inspection area must conform to the required maximum reassessment intervals specified in § 192.939, but not to exceed a seven (7) year reassessment interval. 11 ) In-Line Inspection Reassessment Intervals: Empire must schedule ILl reassessment dates for the 24-inch Empire State Pipeline along the entire length of the special permit inspection area according to § 192.939 by adding the required time interval to the previous assessment date. but not to exceed a seven (7) year reassessment interval. 12) Damage Prevention Best Practices: must incorporate the applicable best practices of the Common Ground Alliance (CGA) into its damage prevention program fo r the special permit inspection area. 13) Field Activity Advance Notice to PHMSA: Empire must give a minimum of 14 days advance notice8 to the Director, PHMSA Eastern Region to enable him/her to observe the excavations relating to Conditions 5, 6, 19, 20, 2 1, 22, 23, and 24 of field activities in the special permit inspection area. Immediate response conditions do not require a 1 4-day notice, but the PHMSA Eastern Region Director should be notified by Empire no later than two business days after the immediate condition is discovered. 14) High Consequence Area Assessments: Empire must not let this special permit impact or defer any of the operator's assessments for HCAs under 49 CFR Part 192, Subpart 0. 8 Empire must give notice in I'' quarter of each year any planned field activities under this special permit to the Director. PHMSA Southern Region. PHMSA Director may elect to witness and be not iced on so me field activities. Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20,2010 to May 20, 2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 8Page 8 of 22 15) Annual Reports to PHMSA: Within three (3) months following the grant of this special permit and annually9 thereafter, Empire must report the following to the Director, PHMSA Eastern Region; Director, PHMSA Standards and Rulemaking Division; and submit a copy to the Federal Register Docket (PHMSA-2008-0213) at regulations.gov: a) In the first annual report, Empire must describe the economic benefits of the special permit including both the costs avoided from not replacing the pipe and the added costs of the inspection program. Subsequent annual reports should address any changes to these economic benefits. b) In the first annual report, fully describe how the public benefits from energy availability. This should address the benefits of avoided disruptions as a consequence of pipe replacement and the benefits of maintaining system capacity. Subsequent reports must indicate any changes to this initial assessment. c) The number of new residences, other structures intended for human occupancy and public gathering areas built within one (I) mile on either end of the special permit segment. d) Any new integrity threats identified during the previous year and the results of any ILl or direct assessments performed (including any un-remediated anomalies over 30% wall loss; cracking found in the pipe body, weld seam or girth welds; and dents with metal loss, cracking or stress riser) during the previous year in the special permit inspection area. e) Any reportable incident, any leak normally indicated on the DOT Annual Report and all repairs on the pipeline that occurred during the previous year in the special permit inspection area. f) Any on-going damage prevention initiatives affecting the special permit inspection area and a discussion of the success of the initiatives. g) Any mergers, acquisitions, transfer of assets, or other events affecting the regulatory responsibility of the company operating the pipeline. 16) Cathodic Protection Test Station- Location: At least one (1) cathodic protection (CP) pipe-to- soil test station must be located within each HCA with a maximum spacing between test stations of one-half mile within an HCA. In cases where obstructions or restricted areas prevent test 9 Annual reports must be received by PHMSA by the last day of the month in which the Special Permit is dated. For example, the annual report for a Special Permit dated May 20, 20 I 0, must be received by PHMSA no later than May 31 , each year beginning in 20 I I. Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20,2010 to May 20,2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 9Page 9 of22 station placement, the test station must be placed in the closest practical location. This requirement applies to any HCA within the special permit inspection area. 17) Cathodic Protection Test Station - Remediation: If any annual CP test station readings within the special permit inspection area fall below 49 CFR Part 192, Subpart I requirements, remediation must occur within six months and include a CIS on each side of the affected test station to the next test station and perform any identified corrosion system modifications to ensure acceptable corrosion control. If factors beyond Empire' s control prevent the completion of remediation within six months, remediation must be completed as soon as practicable and a letter justifying the delay and providing the anticipated date of completion must be submitted to the Director, PHMSA Eastern Region no later than the end of the six (6) months completion date. Any extended evaluation and remediation schedules submitted to PHMSA from Empire must receive a "no objection" from the Director, PHMSA Eastern Region. 18) Interference Currents Control: Empire must address induced AC from parallel electric transmission lines and other interference issues in the special permit inspection area that may affect the pipeline. An induced AC program or DC program to protect the pipeline from corrosion caused by stray currents must be in place within one ( 1) year of the date of this special permit. 19) Field Coating: The coatings used on the pipeline and girth weld joints in the special permit segments must be non-shielding to CP. In the event that the coating type is unknown or is known to shield CP for girth weld joints then Empire must take special care to: a) Analyze ILl logs in the areas of girth welds for potential corrosion indications. b) Any ILl corrosion indications above 30% wall loss at girth welds where the coating type is unknown or is known to shield CP, girth weld joints must be exposed and evaluated each time the ILl is run or until the girth weld coating is replaced. c) A minimum oftwo girth weld joints at locations most likely to have shielding and corrosion shall be exposed and evaluated each time ILl is run. If corrosion is found, the next most likely joint is to be exposed and evaluated until no corrosion is found. 20) Anomaly Evaluation and Repair: Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20, 2010 to May 20, 2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 10Page 10 of22 a) General: Empire must account for ILl tool tolerance and corrosion gro-wth rates in scheduled response times and repairs with documentation and technical justification of the values used. Empire must demonstrate ILl Tool tolerance accuracy for each ILl Tool run by usage of calibration excavations and unity plots that demonstrate ILl Tool accuracy for depth within + 1 0% accuracy for 80% of the time. The unity plots must show: a) actual anomaly depth versus predicted depth and b) actual failure pressure/MAOP versus predicted failure pressure/MAOP. Discovery date must be within 60 days of an ILl Tool run for each type ILI Tool (geometry, deformation or high resolution MFL). b) Dents: Empire must repair dents to the 24-inch Empire State Pipeline in the special permit inspection areas in accordance with § 192.933 repair criteria. Special permit inspection areas must have a geometry or deformation tool inspection as part of the initial ILI, if no geometry or deformation tool has been completed it must be completed and all dent repairs made in accordance with§ 192.933 repair criteria. The geometry tool can be from past ILI inspections. The timing for these dent repairs should fo llow Empire's O&M Manual but must not be longer than one (1) year after discovery. c) Investigation and Repair Criteria: Investigation, evaluation, and repair criteria applies to all anomalies located on the 24-inch Empire State Pipeline within the special permit segments and special permit inspection area when they have been excavated, investigated, and remediated in accordance with§§ 192.485 and 192.933 incorporating appropriate class location design factors in the anomaly repair criteria, including HCAs as follows: • Special permit segments- Repair any anomaly within a special permit segment that meets either: (1) a failure pressure ratio10 (FPR) less than or equal to 1.39 for original Class 1 location pipe in a Class 3 location operating up to 72% of the specified minimum yield strength (SMYS); (2) an anomaly depth greater than or equal to 40% of pipe wall thickness. • Special permit inspection areas - Repair any anomaly within a special permit inspection area that meets either: ( 1) an FPR less than design factor - for Class 1 location- FPR equal to or less than 1.39; for Class 2 location - FPR equal to or less than 1.67; and for Class 3 location - FPR equal to or less than 2.0; (2) an anomaly depth equal to or greater than 60% wall thickness loss. 1° Failure pressure ratio (FPR) is based upon the class location where the special permit segmeut or special permit iuspectiou area pipe is located in accordance with § 192.5 and is the reciprocal of the class location design factor in § 1 92. 1 II (a). Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20, 2010 to May 20,2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 11Page 11 of22 - Repair anomalies in original Class 1 location pipe that are now in a Class 2 location in accordance with §§ 192.5 and 192.611 that meets either: (l) is equal to or less than the Class 1 location FPR of 1.39; (2) an anomaly depth equal to or greater than 50% wall thickness loss for anomaly repairs. - Repair anomalies in original Class 2 location pipe that is now in a Class 3 location in accordance with § 192.6 I I that meets either: ( 1) is equal to or less than the Class 2 location FPR of 1.67; (2) an anomaly depth equal to or greater than 50% wall thickness loss for anomaly repairs. d) Response Time for ILl Results: The following guidelines provide the required timing for excavation, investigation, and remediation of anomalies based on ILl data results in accordance with §§ 192.485 and 192.933, and must incorporate appropriate class location design factors in the anomaly repair criteria for special permit segments and special permit inspection areas including all HCAs. Reassessment by ILl will reset the timing for anomalies not already investigated and/or repaired. Empire must evaluate ILl data by using either the ASME Standard 831 G, "Manual for Determining the Remaining Strength of Corroded Pipelines " (ASME 83 I G), the modified 831 G (0.85dL) or R-STRENG for calculating the predicted FPR to determine anomaly responses. • Special permit segments: - Immediate response: Any anomaly within a special permit segment operating up to 72% SMYS that meets either: (1) an FPR equal to or less than 1. I; (2) an anomaly depth equal to or greater than 80% wall thickness loss. - One-year response: Any anomaly within a special permit segment with original Class 1 location pipe in a Class 3 location operating up to 72% SMYS that meets either: (l) an FPR equal to or less than 1.39; (2) an anomaly depth equal to or greater than 40% wall thickness loss. - Monitored response: Any anomaly within a special permit segment with original Class 1 location pipe in a Class 3 location operating up to 72% SMYS that meets both: (l) an FPR greater than 1.39; (2) an anomaly depth less than 40% wall thickness loss. The schedule for the response must take tool tolerance and corrosion growth rates into account. • Special permit inspection area: Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20, 2010 to May 20,2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 12Page 12 of22 - Immediate response: Any anomaly within a special permit inspection area operating up to 72% SMYS that meets either: (I) an FPR equal to or less than I. I; (2) an anomaly depth equal to or greater than 80% wall thickness loss. - One-year response: Any anomaly within a special permit inspection area that meets either: ( 1) an FPR less than design factor - for Class 1 location- FPR equal to or less than 1.39; Class 2 location - FPR equal to or less than I .67; and for Class 3 location - FPR equal to or less than 2.0; (2) an anomaly depth equal to or greater than 60% wall thickness loss. Any anomaly for Class location changes from original Class 1 to 2 location or original Class 2 to 3 location in accordance with §§ 192.5 and I 92.611 that meets either: (1) an anomaly FPR equal to or less than the FPR of the original Class location; (2) an anomaly depth equal to or greater than 50% wall thickness loss. - Monitored response: Any anomaly within a special permit inspection area that meets both: ( 1) an FPR less than design factor - for Class 1 location - FPR greater than 1.39; Class 2 location - FPR greater than 1.67; and for Class 3 location - FPR greater than 2.0; (2) an anomaly depth less than 60% wall thickness loss. Any anomaly repairs for Class location changes from original Class 1 to 2 location or original Class 2 to 3 location in accordance with §§ 192.5 and 192.6 11 that meets both: (I) an anomaly FPR greater than the FPR of the original Class location; (2) an anomaly depth less than 50% wall thickness loss. - The schedule for the response must take tool tolerance and corrosion growth rates into account. e) Special permit segments and special permit inspection area: Upon receipt of this special permit, Empire must implement the repair of any pipe anomalies or dents that does not meet Condition 20 based upon existing ILl results from the high resolution MFL and geometry/caliper tools ran in August and September of2004. Remediation of anomalies and dents must be completed in accordance with Condition 20 timing requirements and completed within I 2 months from grant of this special permit. 21) Girth Welds: Empire must provide records to PHMSA to demonstrate the girth welds in each special permit segment meet the below requirements: Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20, 2010 to May 20,2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 13Page 13 of22 a) The Federal pipeline safety regulations at the time the pipelines were constructed. If not, show that at least 10% of the girth welds in each special permit segment were non- destructively tested after construction but prior to the application for this special permit provided at least two girth welds in each special permit segment were excavated and inspected. b) If Empire cannot provide girth weld records to PHMSA to demonstrate either of the above in Condition 21 (a), Empire must accomplish either (i); or (ii) and (iii) of the following: i) Certify to PHMSA in writing that there have been no in-service leaks or breaks in the girth welds on the 24-inch Empire State Pipeline within the entire special permit inspection area for the entire life of the pipeline, or ii) Evaluate the terrain along each special permit segment for threats to girth weld integrity fro m soil or settlement stresses and remediate all such integrity threats; and 11 iii) Excavate , visually inspect and nondestructively test at least two girth welds on the 24-inch Empire State Pipeline in each special permit segment in accordance with the American Petroleum Institute Standard 1104, "Welding of Pipelines and Related Facilities " (API 11 04) as follows: A. Use the edition of API 1104 current at the time the pipeline was constructed; or B. Use the edition of API 11 04 recognized in the Federal pipeline safety regulations at the time the pipeline was constructed; or C. Use the edition of API 11 04 currently recognized in the Federal pipeline safety regulations. c) If any girth weld in any of the special permit segments does not comply with API 1104, Empire must repair the girth weld immediately and then prepare an inspection and remediation plan for all remaining girth welds in the special permit segments based upon the repair findings and the threat to the special permit segments. Empire must submit the inspection and remediation plan for girth welds to the Director, PHMSA Eastern Region and remediate girth welds in the special permit segments in accordance with the 11 Empire must evaluate for SCC any time the 24-inch Empire State Pipeline is uncovered in accordance with Condition 6 (b) of this special permit. Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20,2010 to May 20, 2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 14Page 14 of 22 inspection and remediation plan within 60 days of finding girth welds that do not meeting this Condition 21 (c). d) All oxy-acetylene girth welds, mechanical couplings and wrinkle bends in any special permit segment must be removed. e) Empire must complete the girth weld testing, and the girth weld inspection and remediation plan, within six months after the grant ofthis special pern1it. If factors beyond Empire's control prevent the completion of these tasks within six months, the tasks must be completed as soon as practicable and a letter justifyi ng the delay and providing the anticipated date of completion must be submitted to the Director, PHMSA Eastern Region no later than six months after the grant of this special permit. 22) Casings: Empire must identify all shorted casings (metallic or electrolytic) within each special permit segment no later than six months after the grant of this special permit and classify any shorted casings as either having a " metallic short" (the carrier pipe and the casing are in metallic contact) or an "electrolytic short" (the casing is filled with an electrolyte) using a commonly accepted method such as the Panhandle Eastern, Pearson, DCVG, ACVG or AC Attenuation. a) Metallic Shorts: Empire must clear any metallic short on a casing in the special permit segments no later than six months after the short is identified. b) Electrolytic Shorts: Empire must remove the electrolyte from the casing/pipe annular space on any casing in the special permit segments that has an electrolytic short no later than six months after the short is identified. c) All Shorted Casings: Empire must install external corrosion control test leads on both the carrier pipe and the casing in accordance with § 192.47 1 to facilitate the future monitoring for shorted conditions and may then choose to fill the casing/pipe annular space with a high dielectric casing fi ller or other material which provides a corrosion inhibiting environment provided an assessment and all repairs were completed. If Empire identifies any shorted casings within the special permit segments, they must monitor1 2 all casings within the special permit segments for shorts at least once each calendar quarter, but at intervals not to exceed 100 days, for four consecutive calendar quarters after the grant of this 12 Monitoring of casings in this situation means an acceptable test method in accordance with 49 CFR Part 192 to determine if the casing and carrier pipe have either a metallic or electrolytic short (connection or contact). Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20,2010 to May 20,2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 15Page 15 of22 special permit. The intent is to identify through monitoring the calendar quarter(s) when electrolytic casing shorts are most likely to be identified. Empire must then monitor all casings for shorts within the special permit segments at least once each calendar year during the calendar quarter(s) when electrolytic casing shorts are most likely to be identified. Any casing shorts found in the special permit segments at any time must be classified and cleared as explained above. 23) Pipe Seam Evaluations: Empire must identify any pipeline in the special permit inspection area that may be susceptible to pipe seam issues because of the vintage of the pipe, the manufacture of the pipe, or other issues. Once Empire has identified such issues, they must complete one or all of the following: a) Empire must perform an engineering analysis to determine if there are any pipe seam threats on the 24-inch pipeline located in the special permit inspection area. This analysis must include the documentation that the processes in 'M Charts' in "Evaluating the Stability of Manufacturing and Construction Defects in Natural Gas Pipelines" by Kiefner and Associates updated April 26, 2007 under PHMSA Contract DTF AA- C OSP02120 and Figure 4.2, ' Framework for Evaluation with Path for the Segment Analyzed Highlighted' from TT0-5 "Low Frequency ERW and Lap Welded Longitudinal Seam Evaluation" by Michael Baker Jr., and Kiefner and Associates, et. al. under PHMSA Contract DTRS56-02-D-70036 were utilized along with other relevant materials. If the engineering analysis shows that the pipe seam issues on the 24-inch Empire State Pipeline located in the special permit inspection area are not a threat to the integrity of the pipeline, Empire does not have to complete Conditions 23 (b) through 23 (e). If there is a threat to the integrity o fthe pipeline, then one or more of Conditions 23 (b) through 23 (e) must be completed; or b) The special permit segments in the pipeline must be hydrostatically tested to a minimum pressure of 100 percent SMYS, per 49 CFR Part 192, Subpart J requirements for eight continuous hours, within one (1) year of issuance of this special permit if no 49 CFR Part 192, Subpart J hydrostatic test has been performed since 1971. The hydrostatic test must confirm no systemic issues with the weld seam or pipe. A root cause analysis, including metallurgical examination of the failed pipe, must be performed for any fai lure experienced to verify that it is not indicative of a systemic issue. The results of this root Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Specia l Permit Renewa l May 20, 2010 to May 20,2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 16Page 16 of22 cause analysis must be reported to the Director, PHMSA Eastern Region within 60 days of the failure; or c) If the pipeline in the special permit inspection area has experienced a seam leak or failure in the last five (5) years and no hydrostatic test meeting the conditions of 49 CFR Part 192, Subpart J was performed after the seam leak or failure, then a hydrostatic test must be performed within one (1) year after the grant of this special permit on the special permit segment pipeline; and d) If the pipeline in any special permit segment has any Low Frequency (LF) Electric Resistance Weld (ERW) seam or Electric Flash Weld (EFW) seam conditions as noted in (i), (ii), or (iii) below, the special permit segment pipeline must be replaced: i) constructed or manufactured prior to 1954 and has had any pipe seam leaks or ruptures in the special permit inspection area, ii) has unknown manufacturing processes, or iii) has known manufacturing or construction issues that are unresolved [such as concentrated hard spots, hard heat-affected weld zones, selective seam corrosion, pipe movement that has lead to buckling, have had past leak and rupture issues, or any other systemic issues]. e) If the pipeline in any special permit segment has a reduced longitudinal joint seam factor, below 1.0, as defined in § 192.113 the special permit segment pipeline must be replaced. f) All pipe in special permit segments must have all weld seam or girth weld repairs that have been made by the usage of fittings such as weldolets, threadolets, repair clamps and pipe sleeves removed and replaced with pipe in accordance with 49 CFR Part 192 requirements. 24) Special Permit Segment Specific Conditions: Empire must comply with the following requirements: a) Pipe Properties Records: Empire must mechanically and/or hydrostatically test pipe in each special permit segment that does not meet Condition 25 (b) as follows: i) A minimum of 10% of pipe lengths/joints, or at least 2 pipe lengths/joints when percentage is less than 2 pipe lengths/joints, must be tested in accordance with §§ 192.109and 192.107(b). ii) Special permit segment pipe must meet the requirements of§ 192.107 (b). Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20,2010 to May 20,2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 17Page 17 of22 iii) Special permit segment pipe must be tested for mechanical and chemical properties as required in 49 CFR Part 192, Appendix B, Section III (B) and (C). iv) Pipe that is tested for properties in accordance with Condition 24 (a)(i),(a)(ii) and (a)(iii), must meet the hydrostatic test requirements of 49 CFR Part 192, Appendix B, Section III (C)(2). Original Class 1 location pipe that is approved for C lass 3 locations per this special permit must be tested to a minimum of 100% SMYS for 8 continuous hours in accordance with 49 CFR Part192, Subpart J. v) The requirements in Condition 24 (a) must be completed within one (l) year of issuance of this special permit and must meet pipe properties requirements for the pipe designed class location factor in accordance with § § 192.103. 192.105, 192.107, 192.109, 192.111 and 192.113. b) Depth of Cover Survey: Empire must complete within one ( 1) year of the grant of this special permit a depth of cover survey of the special permit segments. Any pipe in the special permit segments that does not meet § 192.327(a) must have additional safety measures implemented in areas with reduced depth of cover. Empire must submit to the Director, PHMSA Eastern Region for PHMSA approval remedial measures to implement based upon the threat, such as lowering the pipeline, increased pipeline patrols and/or additional line markers. c) Line-of-Sight Markers: Empire must complete within one (l) year of the grant of this special permit installation of line-of-sight markers in the special permit segments and special permit inspection area. Agricultural areas or large water crossings such as lakes where line-of-sight markers are impractical will not be required to have line-of-sight markers. The marking of pipelines is also subject to Federal Energy Regulatory Commission (FERC) orders and environmental permits and local restrictions. d) Right-of-Way Patrols: Empire must perform aerial patrols monthly, with the maximum time interval not to exceed 45 days, weather permitting, in the special permit segments and special inspection areas. e) Class Locations: Class 4 locations are not included in this special permit. f) Data Integration: Empire must maintain data integration of special permit condition findings and remediation in the special permit segments and 1 mile beyond both sides of each special permit segment. Data integration must include the following information: Pipe diameter, wall thickness, grade, and seam type; pipe coating including girth weld Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20, 2010 to May 20,2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 18Page 18 of 22 coating; maximum allowable operating pressure (MAOP); class location (including boundaries on aerial photography); high consequence areas (HCAs) (including boundaries on aerial photography); hydrostatic test pressure including any known test failures ; casings; any in-service ruptures or leaks; in-line inspection (ILl) survey results including HR-MFL, HR-geometry/caliper or deformation tools; close interval survey (CIS) surveys - most recent; depth of cover surveys; rectifier readings; test point survey readings; AC/DC interference surveys; pipe coating surveys; pipe coating and anomaly evaluations from pipe excavations; stress corrosion cracking (SCC) excavations and findings; and pipe exposures from encroachments. Data integration must be outlined on pipeline route drawings with parallel sections for each integrity category and recent aerial photography (recent photography, within three (3) years of permit modification and every three (3) years thereafter). i) Data integration documentation and drawings to meet Condition 24(f) must be completed and submitted, if requested by PHMSA, beginning with the 2"d annual report of this revised special permit with four ( 4) years of prior data. ii) Data integration must be updated on an annual basis and with at least an annual review of integrity issues to be remediated. g) Pipeline System Flow Reversals: i) For long term pipeline system flow reversals exceeding 90 days where either 49 CFR § 192.619(a)( l) or§ 192.611 MAOPs for class location changes are exceeded 1 3 for a special permit segment, Empire must document the flow reversal operational, integrity, and safety processes for the special permit segment and special permit inspection area as follows: all technical, operational, integrity management, and safety procedures implemented; including any pressure tests, pressure control changes (pressure relief or monitor size or location changes), ILl inspections, direct examinations and repairs, emergency responder and public notifications prior to the change in natural gas flow direction and any leaks, failures, incidents, or remediation conducted; and confirmation of the lowest failure pressure (ratio to MAOP), most severe dent, and largest wall loss anomalies remaining. 13 An example of exceedance of 49 CFR § 192.6 19 (a)( I) is a Grand fathered MAOP wh ich has a design factor above 0.72. An example of exceedance of 49 CFR § 192.6 11 is a class I to 3 location change. Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewa l May 20,2010 to May 20, 2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 19Page 19 of22 ii) Empire must use and document measures implemented to meet PHMSA Advisory Bulletin (ADB-2014-04), "Guidance for Pipeline Flow Reversals, Product Changes and Conversion of Service" issued on September 18, 2014 (79 FR 56121, Docket PHMSA-2014-0400). iii) Empire must submit the documents in Condition 24(f)(i) and (ii) above to the PHMSA Director, PHMSA Eastern Region; Director, PHMSA Standards and Rulemaking Division; and Director, PHMSA Engineering and Research Division within 180-days prior to any planned pipeline system long term flow reversals for a special permit segment or special permit inspection area that would exceed either 49 CFR § 192.6 19(a)(l) or§ 192.611 allowed MAOPs. iv) Based upon PHMSA' s review of Empire's flow reversal process for the special permit segment or special permit inspection area, Empire may be given a "no objection" to the pipeline flow reversal by PHMSA or will be informed by PHMSA that re-applying for a new special permit may be necessary. 25) Documentation: Empire must maintain the following records for each special permit segment: a) Documentation showing that each special permit segment has received a § 192.505, Subpart J, hydrostatic test for 8 continuous hours and at a minimum pressure of 1.25 X MAOP. If Empire does not have hydrostatic test documentation, then the special permit segment must be hydrostatically tested to meet this requirement within one (1) year of the grant of this special permit. b) Documentation (mill test reports) showing that the pipe in each special permit segments meets the wall thickness, yield strength, tensile strength and chemical composition of either the American Petroleum Institute Standard 5L, 5LX or SLS, "Specification for Line Pipe " (API SL) referenced in the 49 CFR Part 192 code at the time of manufacturing or if pipe was manufactured and placed in-service prior to the inception of 49 CFR Part 192 then the pipe meets the API SL standard in usage at that time. Any special permit segment that does not have mill test reports for the pipe can not be authorized per this special permit unless it is qualified in accordance with Condition 24 (a) above. c) Documentation of compliance with all the conditions of this special permit must be kept for the applicable life of this special permit for the referenced special permit segments and special permit inspection area. Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20,2010 to May 20,2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 20Page 20 of22 26) Extension of Special Permit Segments: PHMSA may extend the special permit segments to include segments of the 24-inch Empire State Pipeline up to the limits of the special permit inspection area pursuant to the following conditions. Empire must: a) Provide notice to the Director, PHMSA Eastern Region; Director, PHMSA Standards and Rulemaking Division; and Director, PHMSA Engineering and Research Division of a requested special permit segment or extension of the 24-inch Empire State Pipeline based on actual class location change and include a schedule of inspections, of any anticipated remedial actions and the location of the new request including survey stationing. All requests for a special permit segment or extension must be submitted in the fi rst nine (9) months of the § 192.6 11 (d) timing limits and must include information on the potential environmental impacts of the extension. b) Complete all inspections and remediation of the proposed special permit segment or extension to the extent required by the special permit. c) Comply with all the special permit conditions and limitations included herein to all future special permit segments or extensions. d) Comply with the conditions of this special permit for any new special permit segments or extensions required for implementation and certification in accordance with § 192.61 1 (d) timing limits, including submittal of documents to PHMSA required in Condition 27. 27) Certification: A senior executive offi cer (Vice President or higher) of Empire must certify completion of the following in writing to the PHMSA Associate Administrator within twelve (12) months of issuance of this special permit or based upon the timing noted below: a) Empire State Pipeline special permit inspection area and special permit segments meet the conditions described in this special permit or the pipeline complies with § 192.6 11 requirements. b) The written manual of O&M procedures fo r the Empire State Pipeline has been updated to include all additional requirements of this special permi t. c) Empire has implemented all conditions as required by this special permit. Empire must send a copy of the certificati on requi red in Condition 27 (a) through (c) with completion date, compliance documentation summary and the required senior executive signature and date of signature to the PHMSA Associate Administrator with copies to the Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20, 2010 to May 20, 2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 21Page 21 of22 Deputy Associate Administrator, PHMSA Policy and Programs; Director, PHMSA Southern Region; Director, PHMSA Standards and Rulemaking Division; and Director, PHMSA Engineering and Research Division within one ( 1) year of the modification date of this special permit. Limitations: PHMSA grants this special permit subject to the following limitations: 1) PHMSA has the sole authority to make all determinations on whether Empire has complied with the specified conditions of this special permit. 2) Failure to submit the certifications required by Condition 27 within the time frames specified therein will result in automatic revocation of this special permit. 3) PHMSA may revoke, suspend or modify a special permit based on any finding listed in 49 CFR § 190.341 (h)( 1) and require Empire to comply with the regulatory requirements in 49 CFR § 192.611. As provided in 49 U.S.C. § 60122, PHMSA may also issue an enforcement action for failure to comply with this Order. 4) Should PHMSA revoke, suspend or modify a special permit based on any finding listed in 49 CFR § 190.341 (h)(l ), PHMSA will notify Empire in writing of the proposed action and provide Empire an opportunity to show cause why the action should not be taken. In accordance with 49 CFR § 190.341 (h)(3 ), if necessary to avoid the risk of significant harm to persons, property, or the environment, PHMSA will not give advance notice and will declare the proposed action (revocation, suspension, or modification) immediately effective. 5) The terms and conditions of any corrective action order, compliance order or other order applicable to a pipeline facility covered by this special permit will take precedence over the terms ofthis special permit in accordance with 49 CFR § 190.341(h)(4). 6) If Empire sells, merges, transfers, or otherwise disposes of the assets known as the special permit segments or the special permit segment extension, Empire must provide PHMSA with written notice of the transfer within 30 days of the consummation date. In the event of such transfer, PHMSA reserves the right to revoke, suspend, or modify the permit if the transfer constitutes a material change in conditions or circumstances pursuant to 49 CFR § 190.341 (h)(l )(ii) or any other circumstances listed under 49 CFR § 190.341 (h)( 1 ). 7) PHMSA grants this special permit for a period of no more than five (5) years from the grant date. If Empire elects to seek renewal of this special permit, Empire must submit its renewal request at Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20,2010 to May 20, 2015#

U.S. DOT/PHMSA - Empire Pipeline Inc./Renewed Special Permit with Conditions, page 22Page 22 of22 least 180 days prior to expiration of the five-year period to the PHMSA Associate Administrator with copies to the Deputy Associate Administrator, PHMSA Policy and Programs; Director, PHMSA Southern Region; Director, PHMSA Standards and Rulemaking; and Director, PHMSA Engineering and Research Division. PHMSA will consider requests for a special permit renewal for up to an additional five (5) year period. All requests for a special permit renewal must include a summary report in accordance with the requirements in Condition 15 above and must demonstrate that the special permit is still consistent with pipeline safety. PHMSA may seek additional information from Empire prior to granting any request for special permit renewal. AUTHORITY: 49 U.S.C. 60118 (c)(l) and 49 CFR § 1.53. MAY 2 0 2015 Issued in Washington, DC on _______ _ Jeffrey D. Wiese, Associate Administrator for Pipeline Safety Docket: PHMSA-2008-0213 Empire Pipeline, Inc. Special Permit Renewal May 20, 2010 to May 20, 20 15#