U.S. DOT/PHMSA - Letter of Decision

Page 1U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Ave., SE Washington, DC 20590 JUN .2 720ft Mr. David Chittick Director, Pipeline Engineering TransCanada Pipelines Limited 450 - 1st Street, S.W. Calgary, Alberta, Canada T2P 5Hl Docket No. PHMSA-2010-0192 Dear Mr. Chittick: On June 24, 2010, TransCanada Pipelines Limited (TCPL) operator of the ANR Pipeline Company (ANR) wrote to the Pipeline and Hazardous Materials Safety Administration (PHMSA) requesting a special permit to waive compliance from PHMSA's pipeline safety regulation in 49 CFR § 192.611, for one (1) segment of the ANR natural gas transmission pipeline system located in St. Martin Parish, Louisiana. 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 denying your June 24, 2010, special permit application. PHMSA's denial is based on TGPL's compliance history, as an operator, with existing special permits. Specifically, TGPL's failure to perform weekly aerial patrols and quarterly ground patrols as required by the special permit conditions in the existing special permit (PHMSA-RSPA-2003-15733) that was issued to PNGTS Pipeline Company on March 4,2004. For additional information concerning PHMSA's review of your application and the basis for our decision, please see the enclosed Special Permit Analysis and Findings document. This and all other pertinent documents are available for review in Docket No. PHMSA-201O-0192 in the Federal Docket Management System (FDMS) located on the internet at www.Regulations.gov. Pursuant to § 190.341 (i), reconsideration of this decision may be sought by petition to the Associate Administrator. Petitions must be received by PHMSA within 20 calendar days of the notice of the denial and must contain a brief statement of the issue and an explanation of why the petitioner believes the decision is not in the public interest. The Associate Administrator may grant or deny, in whole or in part, any petition for reconsideration without further proceedings. For the special permit application segment identified in the Special Permit Analysis and Findings document, TCPL must complete all pipe replacements, hydrostatic tests, or pressure reductions required to meet the MAOP requirements of § 192.611 by May 31,2012.#

Page 2Mr. David Chittick JUN .2 7 2011 Docket No. PHMSA-2010-0192 My staff would be pleased to discuss this matter or any other regulatory matter with you. John Gale, Director of Standards and Rulemaking, 202-366-0434, may be contacted on regulatory matters and Jeff Gilliam, Director of Engineering and Research, 202-366-0568, may be contacted on technical matters specific to this special permit application. Jeffrey D. Wiese Associate Administrator for Pipeline Safety Enclosure: Special Permit Analysis and Findings#