Kern River Gas Transmission Company — Pipeline Special Permit

U.S. DOT/PHMSA- Kern River Gas Transmission Signed Special Permit Renewal Notice, page 1Official PDFU.S. Department of Transportation Pipeline •Jnd Hazardous Materials Safety Administration l200 New Jersey Ave, S.E. Washington, D.C. 20590 JUL 3 0 2014 Mr. RoJert S. Checketts Vice President, Operations, IT and Engineering Kern River Gas Transmission Company 2755 E. Cottonwood Parkway, Suite 300 Salt Lake City, Utah 84121 Ref: Sp,ecial Permit - PHMSA-2009-0319 Dear Mr. Checketts: The Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety l:.ereby gives notice that the referenced special permit granted to the Kern River Gas Transmission Company (Kern River) on March 19, 2010, for the 12-inch Centennial Lateral will expire on March 19,2015. A Special Permit requiring renewal is defined as a special permit issued with an expiration date in the "limitations" section of the existing special permit. This special permit allows the non-odorization of natural gas in a pipeline that is normally required to be odorized in accordance with 49 CFR § 192.625(b). If Kern River wishes to renew this Special Permit, notice must be given to the PHMSA Associate Administrator for Pipeline Safety 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. John Gale, Director of Standards and Rulemaking Division, may be contacted at 202-366-0434 on 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, w Associate Administrator for Pipeline Safety#

U.S. DOT/PHMSA- Kern River Gas Transmission Signed Special Permit Renewal Notice, page 2The Pipeline and Hazardous Materials Safety Administration (PHMSA) Office of Pipeline Safety (OPS) Federal Special Permit Renewal Requirements June2014 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 for each special permit 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. (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] Kern Riv•!r Gas Transmission Company- PHMSA-2009-0319 Page 2 of 4#

U.S. DOT/PHMSA- Kern River Gas Transmission Signed Special Permit Renewal Notice, page 3(vi) Operating Pressure for Special Permit Segment: Maximum allowable operating pressure (MAOP); class location (including boundaries on aerial photography). (vii) In-service incidents for Special Permit Segments: Any in-service ruptures or leaks including repair type and failure investigation findings; aerial photography of area, within the special permit segment. (viii) Special Permit Conditions: any suggested condition modifications required to maintain safety and the environment. (ix) Summary Report: The summary report is required to demonstrate the special permit is still consistent with pipeline safety and to show that the special permit conditions ensure there is an ongoing program to locate, assess, and remediate safety threats. This report must summarize findings in the special permit segment for the following special permit conditions for each year (4 years) the special permit was in effect: 1) Condition 2: Leakage Surveys - summary of any leaks found including date found and any repairs; 2) Conditions 3 and 4: Close Interval Survey and Interference Surveys ~ summary of any findings and remediation; 3) Condition 5: Integrity Management Plan~ summary of any anomaly excavations, evaluations, and repairs; 4) Condition 6: Cathodic Protection~ summary of any modifications required to maintain cathodic protection. 5) Condition 7: Damage Prevention Program - summary of when each year damage prevention information such as letters or brochures was sent to the public, emergency responders, excavators, heavy equipment rental companies, and public officials; 6) Condition 8: Operation of 10-inch Tap Valve: summary dates of 10- inch tap valve operation; and 7) Condition 10: Certification~ copy of signed certification by senior executive as required in this condition. (d) Renewals: Renewal requests made at least 180 days before a special permit £5pires and conforms to the requirements of this section, the special permit will continue to be in effect and not expire until PHMSA takes a final administrative adion on the renewal application. After all documents are reviewed and the Associate Administrator of Pipeline Safety determines that the Special Permit is consistent with federal regulations 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 analysis and findings 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. Kern River Gas Transmission Company~ PHMSA-2009-0319 Page 3 of 4#

U.S. DOT/PHMSA- Kern River Gas Transmission Signed Special Permit Renewal Notice, page 4(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 development and submission of the EA requirements. 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 comment period of 30 days. PHMSA will notify the operator of any EA requirements after receipt of the renewal application. (g) Special Permit Decision Process: -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. Kern Riv·~r Gas Transmission Company- PHMSA-2009-0319 Page4 of4#