Kinder Morgan Liquid Terminals, LLC (KMLT) — Pipeline Special Permit

2025-0015 KMLT - LOD, page 1Official PDFVia E-Mail May 29, 2026 Vaughn Yarber Vice President – Northern Area Kinder Morgan Liquid Terminals Vaugh_yarber@kindermorgan.com Re: Docket No. PHMSA-2025-0015 Dear Mr. Yarber: On December 13, 2024, pursuant to 49 Code of Federal Regulations (CFR) § 190.341, Kinder Morgan Liquid Terminals, LLC (KMLT) requested that the Pipeline and Hazardous Materials Safety Administration (PHMSA) issue a special permit for three double-bottom breakout tanks located in Middlesex County, New Jersey. KMLT requested a waiver of compliance from 49 CFR §§ 195.563(a) and (d) and 195.565 to permit Tank 260-5, Tank 260-9, and Tank 260-60—termed the special permit tanks—to mitigate corrosion using vapor corrosion inhibitors (VCIs) rather than cathodic protection. PHMSA grants this special permit waiving KMLT’s obligation to comply with the requirements in 49 CFR §§ 195.563(a) and (d) and 195.565, subject to certain additional terms and conditions. The conditions require adherence to procedures which ensure adequate implementation of VCI and electrical resistance probe corrosion monitoring, increased frequency of corrosion rate monitoring and tank floor inspections, and more stringent leak monitoring criteria. The special permit conditions and other pertinent documents can be reviewed in Docket No. PHMSA-2025-0015 in the Federal Docket Management System at www.regulations.gov. 1 My staff would be pleased to discuss this special permit with you. Any technical questions regarding this special permit should be directed to Max Kieba, Director, Engineering and Research Division, at pipelinespecialpermits@dot.gov. Please direct any questions related to operational matters to Rob Burrough, Director, Eastern Region, at robert.burrough@dot.gov. Sincerely, Linda Daugherty Acting Associate Administrator for Pipeline Safety 1 https://www.regulations.gov/docket/PHMSA-2025-0015 PHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC Special Permit Letter of Decision– New Jersey 1#

2025-0015 KMLT - SPAF, page 1Official PDFU.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION Special Permit Analysis and Findings Corrosion Mitigation on Breakout Tanks Special Permit Information: Docket Number: PHMSA-2025-0015 Requested By: Kinder Morgan Liquid Terminals Operator ID#: 26041 Original Date Requested: December 13, 2024 Original Issuance Date: May 29, 2026 Code Section(s): 49 CFR §§ 195.563 (a) and (d) and 195.565 Purpose: The Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS)1 provides this information to describe the facts of the subject special permit application submitted by Kinder Morgan Liquid Terminals, LLC (KMLT), to discuss any relevant public comments received with respect to the application, to present the engineering and safety analysis of the special permit application, and to make findings regarding whether the requested special permit should be granted and—if so—under what conditions. Pipeline System Affected: On December 13, 2024, KMLT applied for a special permit waiving the cathodic protection requirements in 49 Code of Federal Regulations (CFR) §§ 195.563(a) and (d) and 195.565 for three breakout tanks (special permit tanks) located in Middlesex County, New Jersey. Special Permit Request: KMLT requested a waiver of compliance from 49 CFR §§ 195.563(a) and (d) and 195.565 to allow three double-bottom breakout tanks—Tank 260-5, Tank 260-9, and Tank 260-60, called the special permit tanks—to mitigate corrosion using vapor corrosion inhibitors (VCIs) rather than a traditional CP system. Description and definition of the special permits tanks and the tank specifications are detailed in the KMLT application letter with attachments in Docket No. PHMSA-2025-0015, including a map of the special permit tanks in Attachment B. 1 Throughout this special permit the usage of “PHMSA” or “PHMSA OPS” means the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration Office of Pipeline Safety. PHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC Special Permit Analysis and Findings – NJ Page 1 of 4#

2025-0015 KMLT - SPAF, page 2Public Notice: On February 3, 2026, PHMSA posted a notice of this special permit request in the Federal Register (91 FR 5031) with a closing date of March 5, 2026. The KMLT special permit application letter with attachments, Federal Register notice, environmental assessment, and all other pertinent documents are available for review in Docket No. PHMSA-2025-0015 in the Federal Docket Management System located at www.regulations.gov. PHMSA reviewed all public comments received for Docket Number PHMSA-2025-0015 through March 5, 2026. PHMSA received seven public comments submitted by both identified and anonymous members of the public. Specific citations from the Federal pipeline safety regulations referenced throughout PHMSA’s responses to the public comments and are accessible online at eCFR: 49 CFR Chapter I Subchapter D – Pipeline Safety. 2 PHMSA’s responses to relevant comments are as follows. Summary of Public Comments: Three commenters supported the use of VCI technology. One of these commenters noted that VCI technology has been verified by testing as an effective corrosion mitigation tool, including when compared to fully functional cathodic protection systems. Other public comments requested that referenced procedures and technical reports be provided for public review. PHMSA made all the information required to be submitted in the application available for public review during the comment period, including applicant information, facility description, and other information required by 49 CFR § 190.341(c). PHMSA’s technical analysis included review of studies published by the National Association of Corrosion Engineers (NACE) evaluating the effectiveness of VCI in mitigating corrosion and comparing VCI effectiveness to traditional CP. PHMSA’s technical analysis also included review of procedures and vendor documentation describing the installation, frequency of recharge, and replacement or significant maintenance to VCI systems. The same commenters also requested information specific to the methodology, concentration, monitoring, logistics, and leak detection components of the VCI system. VCI systems are installed during floor replacement, using prepackaged tubes installed in parallel spaces across the tank footprints below the sand pad. Electrical resistance probes that measure the corrosiveness of the environment are required to be installed under the tanks within pipe casings. PHMSA reviewed probe installation plans, probe locations, and VCI layouts for each tank. The number of probes vary from five to eight based on the tank size, with one probe installed in the center of the tank bottom and the remaining probes spaced around the perimeter. The initial VCI concentration varies between 160 and 242 pounds per tank. Between 15 and 21 tubes containing VCI are installed in-parallel spaced across the entire tank bottom. If twice annual monitoring indicates a corrosion rate greater than five mils per year, then the VCI concentration is increased by injecting VCI slurry into a set of 12 to 14 perforated pipes, which radiate from the center of the tanks to the perimeter. In addition, the conditions of the special permit include further requirements to investigate unexplained tank volume changes and conduct biannual corrosion rate monitoring and magnetic flux floor scans every 10 years. The special permit does not eliminate or waive KMLT’s obligation to conduct any 2 https://www.ecfr.gov/current/title-49/subtitle-B/chapter-I/subchapter-D PHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC Special Permit Analysis and Findings – NJ Page 2 of 4#

2025-0015 KMLT - SPAF, page 3other required inspections or activities. Each of the special permit tanks includes automated overfill protection and a bottom tank leak detection system. KMLT’s Spill Detection Procedures, required by Part 194 and approved by PHMSA, also require daily visual inspections for leak detection. One commenter asked whether Condition 2.b completely addressed the requirements of the permit. Condition 2.b, in conjunction with the operator’s tank integrity management program and API 655, provides additional monitoring for the special permit tanks and requires the operator to investigate the cause of possible integrity conditions. Any subsequent investigation would be subject to the requirements in the Federal pipeline safety regulations regarding repair, reporting, or other mandated response for discovery of conditions that could impact pipeline safety. One commenter also noted that the proposed special permit included fewer conditions than KMLT’s special permit request. PHMSA has endeavored to streamline its special permit process to focus on conditions which ensure that the special permit is consistent with pipeline safety while omitting other conditions, such as those that are duplicative of existing regulatory requirements. PHMSA finds the special permit conditions provide an equivalent level of safety to compliance with the regulations. Lastly, the Environmental Defense Fund commented referencing the Notice of Limited Enforcement Discretion and Statement of Policy for Issuing Special Permits in Response to National Energy Emergency issued by PHMSA on January 12, 2026. KMLT did not request that PHMSA consider its application in accordance with that Notice. Analysis: Background: Special permits may be granted upon request if circumstances make the applicability of a regulation or standard unnecessary or inappropriate for an applicant’s pipeline facility. Special permits will only be granted when pipe conditions, IM, and the proposed special permit conditions will provide a level of safety greater than or equal to the code requirements. The operator’s Federal pipeline safety regulation compliance and incident history are also evaluated prior to issuance of a special permit. PHMSA reviewed this special permit request to understand the known type of integrity threats to the special permit tanks. This integrity information informed the special permit conditions which ensure that the operator has an ongoing program to locate and remediate safety threats. Enforcement History: In the last five years, PHMSA has issued3 three Notices of Proposed Violation and three Notices of Amendment enforcement actions against KMLT. PHMSA’s review of the enforcement history for KMLT does not indicate that granting the special permit would be inconsistent with pipeline safety. The enforcement data and reports used during PHMSA’s review are publicly available on PHMSA’s Enforcement Transparency website.4 Incident History: PHMSA reviewed the previous five years of incident history to assess the quantity and severity5 of reported incidents. KMLT reported 25 incidents, 10 of which were significant 3 Open cases are not included in the six enforcement actions. 4 https://primis.phmsa.dot.gov/enforcement-data/operator/26041 5 “Significant incidents” are those including any of the following conditions: (1) Fatality or injury requiring in-patient hospitalization; (2) $50,000 or more in 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 PHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC Special Permit Analysis and Findings – NJ Page 3 of 4#

2025-0015 KMLT - SPAF, page 4incidents. While two incidents occurred at the Carteret Terminal, there were no incidents reported for the special permits tanks. PHMSA’s review of the incident history does not indicate that the granting of the special permit would be inconsistent with pipeline safety; in fact, the terms of a Consent Decree addressing a May 2015 rupture requires operation subject to the conditions of this special permit to ensure that the risks and contributory causes are adequately addressed. Operator incident history data is searchable on PHMSA’s public portal.6 Findings: Based on the information submitted by KMLT and PHMSA’s review of the documentation, PHMSA finds that granting this special permit waiving the requirements of 49 CFR §§ 195.563 (a) and (d) and 195.565 for KMLT’s three breakout tanks (special permit tanks) is in the public interest and is not inconsistent with pipeline safety. This special permit requires KMLT to implement the special permit conditions that include applying corrosion mitigation practices to the special permit tanks. releases resulting in an unintentional fire or explosion. Gas distribution incidents caused by a nearby fire or explosion that impacted the pipeline system are excluded from this definition. 6 https://www.phmsa.dot.gov/data-and-statistics/pipeline/operator-information PHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC Special Permit Analysis and Findings – NJ Page 4 of 4#

2025-0015 - KMLT - Final Conditions, page 1Official PDFU.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION SPECIAL PERMIT – Corrosion Mitigation on Breakout Tanks Special Permit Information: Docket Number: PHMSA-2025-0015 Requested By: Kinder Morgan Liquid Terminals Operator ID#: 26041 Original Date Requested: December 13, 2024 Issuance Date: May 29, 2026 Effective Dates: May 29, 2026 to May 29, 2041 Code Sections: 49 CFR §§ 195.563 (a) and (d) and 195.565 Grant of Special Permit: By this order, the Pipeline and Hazardous Materials Safety Administration (PHMSA) Office of Pipeline Safety (OPS)1 grants this special permit to Kinder Morgan Liquid Terminals, LLC (KMLT) for three breakout tanks (special permit tanks) located in Middlesex County, New Jersey. This special permit waives KMLT’s obligation to comply with the cathodic protection (CP) requirements in 49 Code of Federal Regulations (CFR) §§ 195.563 (a) and (d) and 195.565. KMLT is required to mitigate the risk of corrosion on the special permit tanks by using vapor corrosion inhibitors (VCIs) and alternative corrosion rate monitoring equipment instead of a traditional CP system. KMLT is also required to implement other enhanced safety measures for the special permit tanks. I. Purpose and Need KMLT requested a waiver of compliance with the CP requirements in 49 CFR §§ 195.563 (a) and (d) and 195.565 for the special permit tanks. The special permit tanks are double-bottom atmospheric breakout tanks that confine hazardous liquid at atmospheric pressure. The bottom of the special permit tanks have a layer of steel plates, which make up the tank floor, and a second layer of steel plates beneath the tank floor in contact with the ground, which are called the lower or bottom plates. The double-bottom design of the special permit tanks leaves limited space between the bottom and upper floors, which makes installing traditional CP systems impractical. The special permit allows KMLT to use VCIs for corrosion protection in the space between the tank floor and bottom plates of the special permit tanks. The special permit requires KMLT to inject VCIs between the tank floor and bottom plates of the special permit tanks to decrease corrosivity of the material in the interstitial space between the tank floor and bottom plates. The VCI method is a non-invasive solution that provides corrosion protection by emitting a vapor that forms a protective layer on the tank bottoms. 1 Throughout this special permit, the use of “PHMSA” means the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety. PHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC Special Permit – Corrosion Mitigation on Breakout Tanks – New Jersey Page 1 of 4#

2025-0015 - KMLT - Final Conditions, page 2II. Special Permit Tanks The special permit pertains to the specified special permit tanks: Tank 260-5, Tank 260-9, and Tank 260- 60 and their respective components, piping, and equipment, which are located at the Kinder Morgan Carteret Terminal in Middlesex County, New Jersey. Attachment B contains maps, indicating the locations of the special permit tanks. Attachment C provides an integrity summary of the special permit tanks. III. Conditions PHMSA grants this special permit to KMLT, waiving its obligation to comply with the requirements in 49 CFR §§ 195.563(a) and (d) and 195.565, subject to the following conditions. 1) Procedure and Record Requirements: a) Required Procedures. Corrosion monitoring and mitigation of the special permit tanks using VCI must be implemented as described in KMLT’s referenced procedures. 2 KMLT must submit revisions of these procedures, and any procedures that impact the special permit tanks’ inspections, remediation, monitoring, or integrity as required by Appendix A. b) Procedure Updates. Within 90 days of the grant of the special permit, procedures must be developed or modified that incorporate the requirements of this special permit. c) Documentation. Documentation of compliance with the conditions of this special permit must be maintained for the life of the special permit tanks. 2) Tank Integrity Management Program: a) Installation and maintenance of VCIs and corrosion rate monitoring systems within the interstitial space between the special permit tanks’ floor and bottom plates must be in accordance with American Petroleum Institute (API) Technical Report 6553 and KMLT’s referenced procedure T-O&M 927. b) KMLT must immediately investigate any unauthorized movement on a static tank or five percent variance on an active transfer indicated by continuous monitoring. 3) Biannual Corrosion Rate Checks: KMLT must monitor the corrosion rate of the special permit tanks at least two times per calendar year, not to exceed 7½ months. If an increase in the corrosion rate on two consecutive readings results in additional VCIs installed (VCI recharge) per T-O&M 927, notification must be submitted to PHMSA as required by Appendix A. 4) Tank Floor Inspections: KMLT must conduct floor scans every 10 years using magnetic flux (MF) technology to measure the special permit tanks’ floor thickness and identify anomalies. The 10-year 2 (1) T-O&M 927 - Installation and Monitoring of Vapor Corrosion Inhibitor on Existing Breakout Tanks, October 31, 2017. (2) T-O&M 2101 - Tank Inspection, December 1, 2024. 3 American Petroleum Institute Technical Report 655, “Vapor Corrosion Inhibitors for Storage Tanks,” 1st edition, April 2021, (API TR 655). PHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC Special Permit – Corrosion Mitigation on Breakout Tanks – New Jersey Page 2 of 4#

2025-0015 - KMLT - Final Conditions, page 3interval shall be calculated from the age of the tank floor. 4 KMLT may select out-of-service tools or in-service MF robotic tools. 5) Special Permit Renewal: To apply for renewal of this special permit, a request must be submitted at least 180 days prior to expiration of the effective dates as detailed in Appendix A. After a request is received, PHMSA will evaluate compliance with the special permit and may seek additional information from the operator in conducting their review. Based on findings of the review, PHMSA may modify, renew, or deny reissuance of the special permit. IV. Limitations This special permit is subject to the limitations set forth in 49 CFR § 190.341, as well as the following limitations: 1. Any procedures, plans, and associated schedules for the special permit tanks are subject to the conditions of this special permit and are enforceable in the same manner. 2. PHMSA has the sole authority to make determinations on compliance with the conditions of this special permit. 3. As provided in 49 CFR § 190.341, PHMSA may issue an enforcement action for failure to comply with this special permit. The terms and conditions of any corrective action order, compliance order, or other order or enforcement applicable to a tank facility covered by this special permit will take precedence over the terms of this special permit. 4. If all or part of the assets known as special permit tanks are sold, merged, transferred, or otherwise disposed of, written notice of the change must be provided to PHMSA within 60 days of the consummation date as detailed in Appendix A. In the event of such a transfer, PHMSA reserves the right to revoke, suspend, or modify the special permit if the transfer constitutes a material change in conditions or circumstances underlying the permit. AUTHORITY: 49 United States Code 60118 (c)(1) and 49 CFR § 1.97. Issued in Washington, D.C., on May 29, 2026. Linda Daugherty Acting Associate Administrator for Pipeline Safety 4 The initial 10-year scans of the special permit tanks were completed during out-of-service inspections in 2022-2024. PHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC Special Permit – Corrosion Mitigation on Breakout Tanks – New Jersey Page 3 of 4#

2025-0015 - KMLT - Final Conditions, page 4Appendix A – Notifications and Submittals Notifications and submittals to PHMSA must include the special permit docket number and follow the requirements described below. Condition # Type Include in Notification Recipient Submittal Timing PHMSA Approval 1(a) Required procedures • Redlined copies of revised procedures, or procedures impacting special permit tanks inspections, remediation, monitoring, or integrity. Region Director Within 2 months of procedural update No 3 VCI recharge • Identify the special permit tank and corrosion rate monitoring results which resulted in VCI recharge. Region Director Within 45 days of discovery No Limitations (4) Asset changes • Name of specific asset (s) sold, merged, transferred, or otherwise disposed of. Associate Administrator – Copies to Region Director and Engineering Director Within 60 days of the consummation date Revoke, suspend, or modify the special permit 5 Special permit renewal • Provide notice of intent to renew. • An updated Final Environmental Assessment, if necessary to capture additional environmental concerns not previously addressed. Associate Administrator – Copies to Region Director and Engineering Director 180 days prior to special permit expiration date Modify, renew, or deny reissuance of the special permit Recipient contact details: Region Director – Eastern Region – Robert Burrough, Robert.Burrough@dot.gov Engineering Director – Max Kieba, pipelinespecialpermits@dot.gov Acting Associate Administrator – Linda Daugherty, Linda.Daugherty@dot.gov PHMSA-2025-0015 – Kinder Morgan Liquid Terminals, LLC Special Permit – Corrosion Mitigation on Breakout Tanks – New Jersey Page 4 of 4#