{"operation":"document","citation":"PHMSA-2025-0015","title":"Kinder Morgan Liquid Terminals, LLC (KMLT) — Pipeline Special Permit","source_type":"permit","agency":"Pipeline and Hazardous Materials Safety Administration","status":"current","official":true,"published_on":"2026-05-29","effective_on":"2026-05-29","summary":"PHMSA-2025-0015, issued 2026-05-29 for Kinder Morgan Liquid Terminals, LLC (KMLT)'s hazardous liquid system.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-special-permit-phmsa-2025-0015.json","markdown":"https://regulus.evalyn.ai/document/phmsa-special-permit-phmsa-2025-0015.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-special-permit-phmsa-2025-0015","source_url":"https://www.regulations.gov/docket/PHMSA-2025-0015","body":"PHMSA pipeline special permit PHMSA-2025-0015. Operator: Kinder Morgan Liquid Terminals, LLC (KMLT). System: Hazardous Liquid. Issue date: 2026-05-29.\n\n<<<PAGE 1>>>\n\nVia E-Mail\nMay 29, 2026\nVaughn Yarber\nVice President – Northern Area\nKinder Morgan Liquid Terminals\nVaugh_yarber@kindermorgan.com\nRe: Docket No. PHMSA-2025-0015\nDear Mr. Yarber:\nOn December 13, 2024, pursuant to 49 Code of Federal Regulations (CFR) § 190.341, Kinder Morgan\nLiquid Terminals, LLC (KMLT) requested that the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) issue a special permit for three double-bottom breakout tanks located in\nMiddlesex County, New Jersey. KMLT requested a waiver of compliance from 49 CFR §§ 195.563(a)\nand (d) and 195.565 to permit Tank 260-5, Tank 260-9, and Tank 260-60—termed the special permit\ntanks—to mitigate corrosion using vapor corrosion inhibitors (VCIs) rather than cathodic protection.\nPHMSA grants this special permit waiving KMLT’s obligation to comply with the requirements in\n49 CFR §§ 195.563(a) and (d) and 195.565, subject to certain additional terms and conditions. The\nconditions require adherence to procedures which ensure adequate implementation of VCI and electrical\nresistance probe corrosion monitoring, increased frequency of corrosion rate monitoring and tank floor\ninspections, and more stringent leak monitoring criteria. The special permit conditions and other pertinent\ndocuments can be reviewed in Docket No. PHMSA-2025-0015 in the Federal Docket Management\nSystem at www.regulations.gov.\n1\nMy staff would be pleased to discuss this special permit with you. Any technical questions regarding this\nspecial permit should be directed to Max Kieba, Director, Engineering and Research Division, at\npipelinespecialpermits@dot.gov. Please direct any questions related to operational matters to Rob\nBurrough, Director, Eastern Region, at robert.burrough@dot.gov.\nSincerely,\nLinda Daugherty\nActing Associate Administrator for Pipeline Safety\n1 https://www.regulations.gov/docket/PHMSA-2025-0015\nPHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC\nSpecial Permit Letter of Decision– New Jersey 1\n\n<<<PAGE 1>>>\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nSpecial Permit Analysis and Findings\nCorrosion Mitigation on Breakout Tanks\nSpecial Permit Information:\nDocket Number: PHMSA-2025-0015\nRequested By: Kinder Morgan Liquid Terminals\nOperator ID#: 26041\nOriginal Date Requested: December 13, 2024\nOriginal Issuance Date: May 29, 2026\nCode Section(s): 49 CFR §§ 195.563 (a) and (d) and 195.565\nPurpose:\nThe Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS)1 provides this information to describe the facts of the subject special permit application\nsubmitted by Kinder Morgan Liquid Terminals, LLC (KMLT), to discuss any relevant public\ncomments received with respect to the application, to present the engineering and safety analysis of the\nspecial permit application, and to make findings regarding whether the requested special permit should\nbe granted and—if so—under what conditions.\nPipeline System Affected:\nOn December 13, 2024, KMLT applied for a special permit waiving the cathodic protection\nrequirements in 49 Code of Federal Regulations (CFR) §§ 195.563(a) and (d) and 195.565 for three\nbreakout tanks (special permit tanks) located in Middlesex County, New Jersey.\nSpecial Permit Request:\nKMLT requested a waiver of compliance from 49 CFR §§ 195.563(a) and (d) and 195.565 to allow\nthree double-bottom breakout tanks—Tank 260-5, Tank 260-9, and Tank 260-60, called the special\npermit tanks—to mitigate corrosion using vapor corrosion inhibitors (VCIs) rather than a traditional CP\nsystem.\nDescription and definition of the special permits tanks and the tank specifications are detailed in the\nKMLT application letter with attachments in Docket No. PHMSA-2025-0015, including a map of the\nspecial permit tanks in Attachment B.\n1 Throughout this special permit the usage of “PHMSA” or “PHMSA OPS” means the U.S. Department of Transportation’s Pipeline and Hazardous\nMaterials Safety Administration Office of Pipeline Safety.\nPHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC\nSpecial Permit Analysis and Findings – NJ Page 1 of 4\n\n<<<PAGE 2>>>\n\nPublic Notice:\nOn February 3, 2026, PHMSA posted a notice of this special permit request in the Federal Register\n(91 FR 5031) with a closing date of March 5, 2026. The KMLT special permit application letter with\nattachments, Federal Register notice, environmental assessment, and all other pertinent documents are\navailable for review in Docket No. PHMSA-2025-0015 in the Federal Docket Management System\nlocated at www.regulations.gov.\nPHMSA reviewed all public comments received for Docket Number PHMSA-2025-0015 through\nMarch 5, 2026. PHMSA received seven public comments submitted by both identified and anonymous\nmembers of the public. Specific citations from the Federal pipeline safety regulations referenced\nthroughout PHMSA’s responses to the public comments and are accessible online at eCFR: 49 CFR\nChapter I Subchapter D – Pipeline Safety.\n2 PHMSA’s responses to relevant comments are as follows.\nSummary of Public Comments:\nThree commenters supported the use of VCI technology. One of these commenters noted that VCI\ntechnology has been verified by testing as an effective corrosion mitigation tool, including when\ncompared to fully functional cathodic protection systems.\nOther public comments requested that referenced procedures and technical reports be provided for\npublic review. PHMSA made all the information required to be submitted in the application available\nfor public review during the comment period, including applicant information, facility description, and\nother information required by 49 CFR § 190.341(c). PHMSA’s technical analysis included review of\nstudies published by the National Association of Corrosion Engineers (NACE) evaluating the\neffectiveness of VCI in mitigating corrosion and comparing VCI effectiveness to traditional CP.\nPHMSA’s technical analysis also included review of procedures and vendor documentation describing\nthe installation, frequency of recharge, and replacement or significant maintenance to VCI systems.\nThe same commenters also requested information specific to the methodology, concentration,\nmonitoring, logistics, and leak detection components of the VCI system. VCI systems are installed\nduring floor replacement, using prepackaged tubes installed in parallel spaces across the tank footprints\nbelow the sand pad. Electrical resistance probes that measure the corrosiveness of the environment are\nrequired to be installed under the tanks within pipe casings. PHMSA reviewed probe installation plans,\nprobe locations, and VCI layouts for each tank. The number of probes vary from five to eight based on\nthe tank size, with one probe installed in the center of the tank bottom and the remaining probes spaced\naround the perimeter. The initial VCI concentration varies between 160 and 242 pounds per tank.\nBetween 15 and 21 tubes containing VCI are installed in-parallel spaced across the entire tank bottom.\nIf twice annual monitoring indicates a corrosion rate greater than five mils per year, then the VCI\nconcentration is increased by injecting VCI slurry into a set of 12 to 14 perforated pipes, which radiate\nfrom the center of the tanks to the perimeter.\nIn addition, the conditions of the special permit include further requirements to investigate unexplained\ntank volume changes and conduct biannual corrosion rate monitoring and magnetic flux floor scans\nevery 10 years. The special permit does not eliminate or waive KMLT’s obligation to conduct any\n2 https://www.ecfr.gov/current/title-49/subtitle-B/chapter-I/subchapter-D\nPHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC\nSpecial Permit Analysis and Findings – NJ Page 2 of 4\n\n<<<PAGE 3>>>\n\nother required inspections or activities. Each of the special permit tanks includes automated overfill\nprotection and a bottom tank leak detection system. KMLT’s Spill Detection Procedures, required by\nPart 194 and approved by PHMSA, also require daily visual inspections for leak detection.\nOne commenter asked whether Condition 2.b completely addressed the requirements of the permit.\nCondition 2.b, in conjunction with the operator’s tank integrity management program and API 655,\nprovides additional monitoring for the special permit tanks and requires the operator to investigate the\ncause of possible integrity conditions. Any subsequent investigation would be subject to the\nrequirements in the Federal pipeline safety regulations regarding repair, reporting, or other mandated\nresponse for discovery of conditions that could impact pipeline safety.\nOne commenter also noted that the proposed special permit included fewer conditions than KMLT’s\nspecial permit request. PHMSA has endeavored to streamline its special permit process to focus on\nconditions which ensure that the special permit is consistent with pipeline safety while omitting other\nconditions, such as those that are duplicative of existing regulatory requirements. PHMSA finds the\nspecial permit conditions provide an equivalent level of safety to compliance with the regulations.\nLastly, the Environmental Defense Fund commented referencing the Notice of Limited Enforcement\nDiscretion and Statement of Policy for Issuing Special Permits in Response to National Energy\nEmergency issued by PHMSA on January 12, 2026. KMLT did not request that PHMSA consider its\napplication in accordance with that Notice.\nAnalysis:\nBackground: Special permits may be granted upon request if circumstances make the applicability of a\nregulation or standard unnecessary or inappropriate for an applicant’s pipeline facility. Special permits\nwill only be granted when pipe conditions, IM, and the proposed special permit conditions will provide\na level of safety greater than or equal to the code requirements. The operator’s Federal pipeline safety\nregulation compliance and incident history are also evaluated prior to issuance of a special permit.\nPHMSA reviewed this special permit request to understand the known type of integrity threats to the\nspecial permit tanks. This integrity information informed the special permit conditions which ensure\nthat the operator has an ongoing program to locate and remediate safety threats.\nEnforcement History: In the last five years, PHMSA has issued3 three Notices of Proposed Violation\nand three Notices of Amendment enforcement actions against KMLT. PHMSA’s review of the\nenforcement history for KMLT does not indicate that granting the special permit would be inconsistent\nwith pipeline safety. The enforcement data and reports used during PHMSA’s review are publicly\navailable on PHMSA’s Enforcement Transparency website.4\nIncident History: PHMSA reviewed the previous five years of incident history to assess the quantity\nand severity5 of reported incidents. KMLT reported 25 incidents, 10 of which were significant\n3 Open cases are not included in the six enforcement actions.\n4 https://primis.phmsa.dot.gov/enforcement-data/operator/26041\n5 “Significant incidents” are those including any of the following conditions: (1) Fatality or injury requiring in-patient hospitalization; (2) $50,000 or more\nin total costs, measured in 1984 dollars; (3) highly volatile liquid releases of 5 barrels or more or other liquid releases of 50 barrels or more; and (4) liquid\nPHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC\nSpecial Permit Analysis and Findings – NJ Page 3 of 4\n\n<<<PAGE 4>>>\n\nincidents. While two incidents occurred at the Carteret Terminal, there were no incidents reported for\nthe special permits tanks. PHMSA’s review of the incident history does not indicate that the granting of\nthe special permit would be inconsistent with pipeline safety; in fact, the terms of a Consent Decree\naddressing a May 2015 rupture requires operation subject to the conditions of this special permit to\nensure that the risks and contributory causes are adequately addressed. Operator incident history data is\nsearchable on PHMSA’s public portal.6\nFindings:\nBased on the information submitted by KMLT and PHMSA’s review of the documentation, PHMSA\nfinds that granting this special permit waiving the requirements of 49 CFR §§ 195.563 (a) and (d) and\n195.565 for KMLT’s three breakout tanks (special permit tanks) is in the public interest and is not\ninconsistent with pipeline safety. This special permit requires KMLT to implement the special permit\nconditions that include applying corrosion mitigation practices to the special permit tanks.\nreleases resulting in an unintentional fire or explosion. Gas distribution incidents caused by a nearby fire or explosion that impacted the pipeline system are\nexcluded from this definition.\n6 https://www.phmsa.dot.gov/data-and-statistics/pipeline/operator-information\nPHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC\nSpecial Permit Analysis and Findings – NJ Page 4 of 4\n\n<<<PAGE 1>>>\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY\nADMINISTRATION\nSPECIAL PERMIT – Corrosion Mitigation on Breakout Tanks\nSpecial Permit Information:\nDocket Number: PHMSA-2025-0015\nRequested By: Kinder Morgan Liquid Terminals\nOperator ID#: 26041\nOriginal Date Requested: December 13, 2024\nIssuance Date: May 29, 2026\nEffective Dates: May 29, 2026 to May 29, 2041\nCode Sections: 49 CFR §§ 195.563 (a) and (d) and 195.565\nGrant of Special Permit:\nBy this order, the Pipeline and Hazardous Materials Safety Administration (PHMSA) Office of Pipeline\nSafety (OPS)1 grants this special permit to Kinder Morgan Liquid Terminals, LLC (KMLT) for three\nbreakout tanks (special permit tanks) located in Middlesex County, New Jersey. This special permit\nwaives KMLT’s obligation to comply with the cathodic protection (CP) requirements in 49 Code of\nFederal Regulations (CFR) §§ 195.563 (a) and (d) and 195.565. KMLT is required to mitigate the risk of\ncorrosion on the special permit tanks by using vapor corrosion inhibitors (VCIs) and alternative corrosion\nrate monitoring equipment instead of a traditional CP system. KMLT is also required to implement other\nenhanced safety measures for the special permit tanks.\nI. Purpose and Need\nKMLT requested a waiver of compliance with the CP requirements in 49 CFR §§ 195.563 (a) and (d) and\n195.565 for the special permit tanks. The special permit tanks are double-bottom atmospheric breakout\ntanks that confine hazardous liquid at atmospheric pressure. The bottom of the special permit tanks have a\nlayer of steel plates, which make up the tank floor, and a second layer of steel plates beneath the tank\nfloor in contact with the ground, which are called the lower or bottom plates. The double-bottom design\nof the special permit tanks leaves limited space between the bottom and upper floors, which makes\ninstalling traditional CP systems impractical. The special permit allows KMLT to use VCIs for corrosion\nprotection in the space between the tank floor and bottom plates of the special permit tanks. The special\npermit requires KMLT to inject VCIs between the tank floor and bottom plates of the special permit tanks to\ndecrease corrosivity of the material in the interstitial space between the tank floor and bottom plates. The VCI\nmethod is a non-invasive solution that provides corrosion protection by emitting a vapor that forms a\nprotective layer on the tank bottoms.\n1 Throughout this special permit, the use of “PHMSA” means the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety\nAdministration, Office of Pipeline Safety.\nPHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC\nSpecial Permit – Corrosion Mitigation on Breakout Tanks – New Jersey Page 1 of 4\n\n<<<PAGE 2>>>\n\nII. Special Permit Tanks\nThe special permit pertains to the specified special permit tanks: Tank 260-5, Tank 260-9, and Tank 260-\n60 and their respective components, piping, and equipment, which are located at the Kinder Morgan\nCarteret Terminal in Middlesex County, New Jersey. Attachment B contains maps, indicating the\nlocations of the special permit tanks. Attachment C provides an integrity summary of the special permit\ntanks.\nIII. Conditions\nPHMSA grants this special permit to KMLT, waiving its obligation to comply with the requirements in\n49 CFR §§ 195.563(a) and (d) and 195.565, subject to the following conditions.\n1) Procedure and Record Requirements:\na) Required Procedures.\nCorrosion monitoring and mitigation of the special permit tanks using VCI must be\nimplemented as described in KMLT’s referenced procedures.\n2 KMLT must submit revisions\nof these procedures, and any procedures that impact the special permit tanks’ inspections,\nremediation, monitoring, or integrity as required by Appendix A.\nb) Procedure Updates.\nWithin 90 days of the grant of the special permit, procedures must be developed or modified\nthat incorporate the requirements of this special permit.\nc) Documentation.\nDocumentation of compliance with the conditions of this special permit must be maintained\nfor the life of the special permit tanks.\n2) Tank Integrity Management Program:\na) Installation and maintenance of VCIs and corrosion rate monitoring systems within the\ninterstitial space between the special permit tanks’ floor and bottom plates must be in\naccordance with American Petroleum Institute (API) Technical Report 6553 and KMLT’s\nreferenced procedure T-O&M 927.\nb) KMLT must immediately investigate any unauthorized movement on a static tank or\nfive percent variance on an active transfer indicated by continuous monitoring.\n3) Biannual Corrosion Rate Checks: KMLT must monitor the corrosion rate of the special permit\ntanks at least two times per calendar year, not to exceed 7½ months. If an increase in the corrosion\nrate on two consecutive readings results in additional VCIs installed (VCI recharge) per T-O&M 927,\nnotification must be submitted to PHMSA as required by Appendix A.\n4) Tank Floor Inspections: KMLT must conduct floor scans every 10 years using magnetic flux (MF)\ntechnology to measure the special permit tanks’ floor thickness and identify anomalies. The 10-year\n2 (1) T-O&M 927 - Installation and Monitoring of Vapor Corrosion Inhibitor on Existing Breakout Tanks, October 31, 2017. (2) T-O&M 2101 -\nTank Inspection, December 1, 2024.\n3 American Petroleum Institute Technical Report 655, “Vapor Corrosion Inhibitors for Storage Tanks,” 1st edition, April 2021, (API TR 655).\nPHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC\nSpecial Permit – Corrosion Mitigation on Breakout Tanks – New Jersey Page 2 of 4\n\n<<<PAGE 3>>>\n\ninterval shall be calculated from the age of the tank floor.\n4 KMLT may select out-of-service tools or\nin-service MF robotic tools.\n5) Special Permit Renewal: To apply for renewal of this special permit, a request must be\nsubmitted at least 180 days prior to expiration of the effective dates as detailed in Appendix A.\nAfter a request is received, PHMSA will evaluate compliance with the special permit and may\nseek additional information from the operator in conducting their review. Based on findings of\nthe review, PHMSA may modify, renew, or deny reissuance of the special permit.\nIV. Limitations\nThis special permit is subject to the limitations set forth in 49 CFR § 190.341, as well as the following\nlimitations:\n1. Any procedures, plans, and associated schedules for the special permit tanks are subject to the\nconditions of this special permit and are enforceable in the same manner.\n2. PHMSA has the sole authority to make determinations on compliance with the conditions of this\nspecial permit.\n3. As provided in 49 CFR § 190.341, PHMSA may issue an enforcement action for failure to\ncomply with this special permit. The terms and conditions of any corrective action order,\ncompliance order, or other order or enforcement applicable to a tank facility covered by this\nspecial permit will take precedence over the terms of this special permit.\n4. If all or part of the assets known as special permit tanks are sold, merged, transferred, or\notherwise disposed of, written notice of the change must be provided to PHMSA within 60 days\nof the consummation date as detailed in Appendix A. In the event of such a transfer, PHMSA\nreserves the right to revoke, suspend, or modify the special permit if the transfer constitutes a\nmaterial change in conditions or circumstances underlying the permit.\nAUTHORITY: 49 United States Code 60118 (c)(1) and 49 CFR § 1.97.\nIssued in Washington, D.C., on May 29, 2026.\nLinda Daugherty\nActing Associate Administrator for Pipeline Safety\n4 The initial 10-year scans of the special permit tanks were completed during out-of-service inspections in 2022-2024.\nPHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC\nSpecial Permit – Corrosion Mitigation on Breakout Tanks – New Jersey Page 3 of 4\n\n<<<PAGE 4>>>\n\nAppendix A – Notifications and Submittals\nNotifications and submittals to PHMSA must include the special permit docket number and follow the requirements described below.\nCondition # Type Include in Notification Recipient Submittal Timing PHMSA\nApproval\n1(a) Required\nprocedures\n• Redlined copies of revised procedures, or procedures\nimpacting special permit tanks inspections, remediation,\nmonitoring, or integrity.\nRegion Director Within 2 months of\nprocedural update No\n3 VCI recharge\n• Identify the special permit tank and corrosion rate\nmonitoring results which resulted in VCI recharge. Region Director Within 45 days of\ndiscovery No\nLimitations\n(4) Asset changes\n• Name of specific asset (s) sold, merged, transferred, or\notherwise disposed of.\nAssociate Administrator –\nCopies to Region Director\nand Engineering Director\nWithin 60 days of the\nconsummation date\nRevoke, suspend,\nor modify the\nspecial permit\n5 Special permit\nrenewal\n• Provide notice of intent to renew.\n• An updated Final Environmental Assessment, if\nnecessary to capture additional environmental concerns\nnot previously addressed.\nAssociate Administrator –\nCopies to Region Director\nand Engineering Director\n180 days prior to\nspecial permit\nexpiration date\nModify, renew, or\ndeny reissuance\nof the special\npermit\nRecipient contact details:\nRegion Director – Eastern Region – Robert Burrough, Robert.Burrough@dot.gov\nEngineering Director – Max Kieba, pipelinespecialpermits@dot.gov\nActing Associate Administrator – Linda Daugherty, Linda.Daugherty@dot.gov\nPHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC\nSpecial Permit – Corrosion Mitigation on Breakout Tanks – New Jersey Page 4 of 4","truncated":false,"body_characters":22586}