DEPARTMENT OF TRANSPORTATION 
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION 
OFFICE OF PIPELINE SAFETY 
WASHINGTON, DC 20590 
In the Matter of - 
- 
Kinder Morgan Energy Partners, L.P., 1 CPF No. 5-2005-5025HRespondent 
.-. 
, - 
0 
CONSENT AGREEMENT 
On August 24, 2005, the Pipeline and Hazardous Materials Safety Administration 
(PHMSA), Department of Transportation, issued Corrective Action Order (CAO) No. 5- 
2005-5025H to Kinder Morgan Energy Partners, L.P. (Respondent). Having agreed that 
settlement of the CAO is in the public interest and that entry of this Consent Agreement is 
the most appropriate means of resolving the CAO, without adjudication of any issue of 
fact or law, and upon consent and agreement of Respondent and PHMSA ("the Parties"), 
the following is agreed upon: 
I. 
General Provisions 
1. 
PHMSA issued CAO No. 5-2005-5025H to Respondent pursuant to 49 U.S.C. 8 601 12 
and 49 C.F.R. 8 190.233. The CAO directed Respondent to take certain corrective action 
with regard to its 3,900-mile Pacific Operations unit of hazardous liquid pipeline systems 
located in Arizona, California, Nevada, New Mexico, Oregon, and western Texas. The 
Pacific Operations unit includes, among Respondent's hazardous liquid systems in the 
above-mentioned states, the CALhTEV and Sante Fe Pacific Pipelines systems and 
associated bulk terminals; it does not include the Carbon Dioxide system or the Cypress 
system. The CAO was predicated on PHMSA's determination that continued operation 
of the Pacific Operations unit absent specified corrective actions would be hazardous. 
Respondent filed a Request for Hearing on September 6,2005, which disputed the factual 
and legal bases of the CAO, after which Respondent and PHMSA engaged in informal 
settlement discussions resulting in this Consent Agreement. 
2. 
Respondent's participation in this Consent Agreement shall not constitute or be 
construed as an admission of liability. By entering into this Consent Agreement, 

Respondent does not admit to any fact, allegation, or conclusion contained in CAO No. 5- 
2005-5025H. 
3. 
Respondent hereby waives any right to administrative or judicial hearing or appeal on 
any issue of law or fact set forth in CAO No. 5-2005-5025H. 
4. 
This Consent Agreement shall apply to and be binding upon PHMSA and Respondent, 
its officers, directors, and employees. This Consent Agreement applies to the entirety of 
all hazardous liquid pipeline systems within Respondent's Pacific Operations unit as 
defined in Paragraph 1 herein existing at the time of execution of this Consent Agreement 
and is not limited to segments of the pipeline that could affect a high consequence area 
(HCA), as defined by 49 C.F.R. 5 195.450. These pipeline systems described in 
Paragraph 1 will remain subject to this Consent Agreement in the event that Respondent 
changes the name or organizational structure of the Pacific Operations unit or the pipeline 
systems within the unit. 
5. 
Nothing in this Consent Agreement limits or modifies any of PHMSA's authorities 
under the Pipeline Safety Act, 49 U.S.C. 5 60101 et seq., regulations promulgated 
thereunder, or any other applicable law, including PHMSA's authorities to bring 
enforcement actions against Respondent pursuant to any applicable laws or regulations. 
This Consent Agreement does not waive or modify any requirements that are applicable 
to Respondent's pipeline systems under the Pipeline Safety Act, 49 U.S.C. 5 601 01 et 
seq., regulations promulgated thereunder, or any other provision of Federal or state law. 
6. 
Pursuant to 49 U.S.C. 5 60112(c), PHMSA has provided appropriate state officials 
notice and opportunity to comment on the agreement to resolve this matter. 
7. 
Respondent agrees to fully and completely perform all of the terms of this Consent 
Agreement. In exchange for this agreement by Respondent, PHMSA agrees to withdraw 
the CAO and hazardous facility determination set forth therein. These agreements and 
such withdrawal shall be effective on the Effective Date of this Consent Agreement. 
8. 
Upon the Effective Date of this Consent Agreement, Respondent's Request for Hearing 
shall be withdrawn. 
9. 
This Consent Agreement constitutes the final, complete and exclusive agreement 
between the Parties with respect to the settlement embodied in this Consent Agreement, 
and the Parties acknowledge that there are no representations, agreements or 
understandings relating to the settlement other than those expressly contained in this 
Consent Agreement. 

11. 
Work to Be Performed 
10. 
Respondent will conduct a comprehensive analysis of all accidents that have occurred 
since March 31, 2001 on the Pacific Operations unit that were required to be reported 
under 49 C.F.R. $5 195.50 or 195.52 and all documented occurrences with regard to the 
Pacific Operations unit that field or control room staff responded to because of potential 
safety impacts to persons or property ("near misses"). The "near misses" will be 
identified through operation notes available from 2003 forward, product movement logs 
since 2001, and inline inspection dig logs since March 2001. The analysis of these 
accidents and documented occurrences will identify all potential and existing threats to 
the integrity of the Pacific Operations unit. Potential and existing threats include, but are 
not limited to: ongoing maintenance issues, environmental changes, original construction 
practices, outside force damage, line marking, one-call procedures, internal and external 
corrosion susceptibility (prevention and mitigation), human errors, personnel training, 
and Supervisory Control and Data Acquisition (SCADA) capabilities. 
A. 
Respondent will execute a remediation plan to address the threats identified by 
the comprehensive analysis. The remediation plan will contain all planned 
pipeline repairs or changes to operations and maintenance, personnel qualification 
or training, or corrosion control procedures or activities required to address all 
threats identified by the analysis and will contain a schedule for these repairs or 
changes. In addition, the remediation plan will provide for implementation of 
Respondent's East Coast Products Pipeline Near Miss Tracking System 
throughout the Pacific Operations unit. 
B. 
Respondent will repair all conditions defined under 49 C.F.R. 
5 195.452(h)(4)(i) through (iv) that are revealed by the comprehensive analysis or 
any activity related to the analysis within the timeframes set out in 49 C.F.R. 
5 195.452(h)(4) and in compliance with 49 C.F.R. 5 195.422. 
C. 
Respondent will incorporate into its Integrity Management Program, required 
by 49 C.F.R. 5 195.452, any information resulting from the comprehensive 
analysis relevant to a pipeline or facility that could affect an HCA. Based on the 
comprehensive analysis, Respondent will modify as necessary its Integrity 
Management Program elements including, but not limited to, improvements to its 
baseline assessment plan, information analysis, criteria for remedial actions to 
address integrity issues, assessment and evaluation methods, preventive and 
mitigative measures to protect HCAs, and employee qualifications to review 
integrity assessment results and information analyses. 
D. 
Respondent will provide a list of all accidents and documented occurrences 
subject to the comprehensive analysis to the Director, Western Region, Office of 
Pipeline Safety (OPS) for review and approval within 45 days of the Effective 
Date of this Consent Agreement. Respondent will submit the comprehensive 

analysis and remediation plan for review and approval to the Director within 6 
months of the Effective Date. Respondent will submit proposed changes to its 
Integrity Management Program to the Director for review and approval within 4 
months of the Effective Date. Respondent will implement the remediation plan 
on the schedule approved by the Director and will make all changes to its Integrity 
Management Program within 30 days of receiving approval from the Director. 
E. 
When submitting for review the comprehensive analysis, the remediation plan, 
and proposed changes to its Integrity Management Program, Respondent will 
include separate certifications as to the veracity of the factual information 
contained in each submission signed by a director or officer for Respondent. 
F. 
Respondent will retain (see Paragraph 18) an independent risk assessment 
expert(s) to review the comprehensive analysis and remediation plan prior to 
submitting these items to the Director, Western Region, OPS. The independent 
expert will review the development of the analysis and remediation plan, verifylng 
that Respondent has included all known accidents and occurrences, has properly 
identified potential and existing threats, and will adequately address the identified 
threats through the remediation plan. Respondent will also retain an independent 
risk assessment expert(s) to review its Integrity Management Program in order to 
verify that Respondent has adequately identified Integrity Management Program 
elements requiring improvement. The expert will review all proposed changes to 
the Integrity Management Program before Respondent submits them to the 
Director, verifylng that the proposed changes will adequately address the potential 
and existing threats identified in areas of the Pacific Operations unit that could 
affect a high consequence area. 
11. 
Respondent will create a system to integrate all data relevant to the integrity of the 
Pacific Operations unit for use in its operations and maintenance procedures and Integrity 
Management Program. The system will be based on Respondent's existing natural gas 
GIs PODS system and will graphically incorporate, at a minimum, internal inspection 
tool data, close interval and cathodic protection survey data, coating survey data, 
excavation and inspection data, foreign line crossing data, pipeline materials 
specifications, and HCA data. The system will be capable of graphically displaying all 
integrated data by location and will link the aforementioned data to the uniform right-ofway 
stationing system developed pursuant to Paragraph 14H of this Section. Respondent 
will submit a proposal detailing the design of the system and a proposed schedule for 
populating the system with relevant data no later than 2 months after the Effective Date of 
this Consent Agreement for the approval of the Director, Western Region, OPS. 
12. 
Respondent will perform an outside force damage assessment by internally inspecting 
all Pacific Operations unit pipelines within 5 years of the Effective Date of this Consent 
Agreement. 

A. 
Within 6 months of the Effective Date, Respondent will submit to the Director, 
Western Region, OPS for review and approval a description of all tools that will 
be used to internally inspect any segment of the Pacific Operations unit along with 
an explanation as to why the tool is the most technically appropriate selection to 
assess outside force damage for that segment. All internal inspection tools 
proposed by Respondent for the Director's approval will be capable of assessing 
axial gouges that are not associated with dents. Upon the approval of the 
Director, Respondent will carry out that assessment within the 5-year timeframe. 
B. 
In the event that Respondent determines a segment of the Pacific Operations 
unit is incapable of receiving any internal inspection tool, Respondent will submit 
a proposal to the Director within 6 months of the Effective Date for the 
assessment of that segment within the 5-year timeframe using hydrostatic testing 
or a technology better suited to assess outside force damage, subject to the 
Director's approval. Upon the approval of the Director, Respondent will carry out 
that assessment within the 5-year timeframe. 
C. 
If a more effective technology for assessing outside force damage becomes 
available after the Director has approved Respondent's proposed internal 
inspection tool(s), Respondent may seek the Director's approval to use the newlyavailable 
technology. 
D. 
Respondent will repair all gouges and other conditions defined under 49 C.F.R. 
5 195.452(h)(4)(i) through (iv) that are revealed by the assessment on a schedule 
that comports with the deadlines set out in 49 C.F.R. 5 195.452(h)(4) and in 
compliance with 49 C.F.R. 5 195.422. 
E. 
The requirements of the preceding subparagraphs (A through D) shall apply to 
all hazardous liquid pipeline systems covered by this Consent Agreement unless 
Respondent demonstrates to the satisfaction of the Director, Western Region, OPS 
through a risk assessment verified by an independent risk assessment expert, that 
any particular pipeline segment has not been subject to outside force damage in 
the form of undetected third party damage, mechanical pipe damage inflicted 
during construction of the pipeline, or other mechanical damage inflicted by 
outside forces. In such case, after approval of the Director, the Respondent may 
exclude such segment from the internal inspection otherwise required by the 
preceding subparagraph. In no event shall the performance of such a risk 
assessment alter the deadlines established under the preceding subparagraphs. 
13. 
Respondent will assess the adequacy of its corrosion control systems, performing 
close interval surveys of all of the Pacific Operations unit hazardous liquid pipeline 
systems within 10 years of the Effective Date of this Consent Agreement. 

A. 
Respondent will propose a schedule to be approved by the Director, Western 
Region, OPS for the close interval surveys that ensures that the 50% of the Pacific 
Operations unit pipeline mileage considered most susceptible to corrosion will be 
evaluated within 5 years of the Effective Date. As part of the schedule, 
Respondent may propose to include close interval surveys performed on the 
Pacific Operations unit on or after January 1, 2003. Respondent will determine 
the susceptibility of all Pacific Operations unit pipeline segments to corrosion 
based on all available relevant data, including data pertaining to coating 
conditions, cathodic protection readings, and inline inspections. These 
determinations will be provided to the Director with the proposed schedule for 
completing close interval surveys. 
B. 
Respondent will perform the close interval surveys in accordance with National 
Association of Corrosion Engineers (NACE) standard RP0 169-96. With respect 
to each location where the cathodic protection fails to conform to the standard set 
forth in NACE RP0169-96, hereinafter the "Performance Standard," Respondent 
will bring the cathodic protection at each location into compliance with the 
Performance Standard within 1 year of the date of the close interval survey, except 
for interference currents, which will be eliminated within 60 days. Respondent 
will verifL that these measures comply with the Performance Standard through 
pipe-to-soil readings measured in accordance with NACE standard RP0169-96. 
C. 
Respondent will submit written corrosion control status reports to the Director, 
Western Region, OPS at least once every 6 months beginning on the first of the 
month 3 months after the Effective Date of this Consent Agreement. The first 
written corrosion control status report will include the proposed schedule for the 
close interval surveys required under this Paragraph. The status reports submitted 
to the Director thereafter will include a description of all corrosion control-related 
work performed pursuant to this Consent Agreement, an identification of each 
location on the pipeline (using, at a minimum, the stationing system developed 
pursuant to Paragraph 14H of this Consent Agreement) that the close interval 
survey has identified as falling below the Performance Standard, a description of 
the corrective measures to be taken to bring that location up to the Performance 
Standard, and, once those measures have been completed at that location on the 
schedule required herein, a certification that Respondent has performed pipe-tosoil 
readings measured in accordance with NACE standard RP0 169-96, and that 
the cathodic protection system at such location meets the Performance Standard. 
D. 
In conjunction with the close interval surveys, and within 3 months after the 
close interval survey has been performed at a particular location, Respondent will 
integrate the data obtained from the close interval surveys with data regarding 
corrosion obtained from internal surveys (along with all other relevant data) to 
identify areas on the pipeline where the coating may be disbonded or damaged. 
For those areas where the integrated data indicates that the coating may be 

disbonded or damaged, Respondent will, within 6 months thereafter, verify 
whether the coating is disbonded or damaged at that location and make 
appropriate repairs to achieve compliance with the Performance Standard. 
Respondent will verify that these measures have in fact achieved compliance with 
the Performance Standard through pipe-to-soil readings measured in accordance 
with NACE standard RP0 169-96. 
E. 
Respondent will provide for approval by the Director, Western Region, OPS, a 
schedule of no greater than 10 years for follow-up close interval surveys for each 
line segment of the Pacific Operations. The Director will consider a reassessment 
schedule that is greater than 10 years, if sufficient technical justification is 
provided in writing by Respondent. 
14. 
Respondent will develop a program to enhance the value of internal inspections for 
identifying integrity threats. In addition to the work to be performed as described in the 
subparagraphs below, the program will integrate all data obtained through the work 
performed within its operations and maintenance procedures and Integrity Management 
Program, where applicable. Respondent will ensure that all internal inspections 
conducted after the Effective Date of this Consent Agreement comport at a minimum 
with the requirements of all subparagraphs below and the requirements of 49 C.F.R. 
5 195.452(c)(l)(i)(A) unless the Director, Western Region, OPS provides written 
permission allowing an assessment to be performed via hydrostatic testing or other 
technology that will be more effective for assessing the integrity of the pipeline. 
A. 
Respondent will develop algorithms for assessing data obtained fi-om metal 
loss tools utilizing interaction lengths that consider both general corrosion and 
localized pitting. Assessment of metal loss anomalies will consider tool 
tolerances and corrosion growth based on recognized industry practices or 
Respondent's operating knowledge. Respondent will submit the algorithms for 
approval to the Director, Western Region, OPS within 3 months fi-om the 
Effective Date of this Consent Agreement. Upon approval, Respondent will use 
the algorithms in assessing data obtained fi-om all metal loss tools, including 
magnetic flux leakage and ultrasonic devices. 
B. 
Respondent will evaluate all internal inspection tool data regarding general 
corrosion in accordance with NACE standard RP-102-2002 Section 8.4.3.2.3. 
Respondent may revise the interaction length detailed in the NACE standard if it 
presents field data to the Director, Western Region, OPS demonstrating that a 
shorter interaction length would be equally effective to identify integritythreatening 
corrosion, and if the Director approves this revision. 
C. 
Respondent will develop a methodology to identify the growth of corrosion in 
a single joint of pipe where individual corrosion anomalies may not require 
excavation and remediation under 49 C.F.R. Part 195, but that, based on the rate 

of corrosion growth, pose a risk to the joint of pipe. Respondent will submit the 
methodology to the Director, Western Region, OPS within 3 months from the 
Effective Date of this Consent Agreement for approval. Upon approval, 
Respondent will apply the methodology with respect to all internal inspection data 
obtained regarding corrosion. With respect to each location on the pipeline 
determined through application of the methodology to be at risk from corrosion, 
Respondent will promptly make repairs and take all other measures necessary to 
ensure the integrity of the pipeline. Respondent will repair all conditions defined 
under 49 C.F.R. $ 195.452(h)(4)(i) through (iv) on a schedule that comports with 
the deadlines set out in 49 C.F.R. $ 195.452(h)(4) and in compliance with 49 
C.F.R. 
$ 195.422. 
D. 
Respondent will reevaluate magnetic flux leakage internal inspections 
conducted on all hazardous liquid pipelines in the Pacific Operations unit since 
1997 in accordance with the above subparagraphs A, B, and C within 6 months 
from the Effective Date of this Consent Agreement. Respondent will redetermine 
the safe operating pressure for the Pacific Operations pipeline systems 
based on the results of the reevaluation and will not exceed P-Safe operating 
pressure on any system. Respondent will repair all defects identified through the 
reevaluation on a schedule, to be submitted to the Director, Western Region, OPS 
within 6 months of reevaluation of each pipeline system for approval, that at a 
minimum comports with the deadlines set out in 49 C.F.R. $ 195.452(h)(4). All 
conditions defined in 49 C.F.R. $ 195.452(h)(4)(i) through (iv) will be repaired in 
compliance with 49 C.F.R. $ 195.422. 
E. 
In all internal inspections after the date of this Consent Agreement, any 
geometry tools used by Respondent will be capable of accurate characterization of 
features that include dents, ovalities, wrinkles, and buckles. The tool will possess 
adequate sensor spacing to ensure data obtained will allow accurate strain 
analyses calculations. The tool will meet, at a minimum, the following 
specifications: 
i. 
Capable of detecting dents with depths of greater than .15 inches in 
pipelines of up to 24 inches in diameter at a 90 percent probability of 
detection; 
ii. 
Capable of detecting ovalities of less than 1.0 percent of the nominal 
pipeline diameter for pipelines greater than 10 inches in diameter at a 90 
percent probability of detection; 
iii. 
Capable of characterizing dent depths to +I- 1.0 percent of the nominal 
pipeline diameter at 85 percent confidence; 

iv. 
Capable of detecting dents with areal dimensions greater than 1.0 inch 
width by 1.0 inch length; 
v. 
Possessing circumferential accuracy within +I- 1 o'clock position; and 
vi. 
Possessing axial accuracy within +I- 1 percent of a reference point. 
F. 
Respondent will reevaluate all internal inspections in the Pacific Operations 
unit since 1997 that utilized geometry tools, taking into account the tolerances of 
each tool used, within 6 months of the Effective Date of this Consent Agreement. 
Alternatively, within 5 years of the Effective Date of this Consent Agreement, 
Respondent will re-inspect all hazardous liquid pipelines in the Pacific Operations 
unit that have been internally inspected with a geometry tool since 1997 utilizing a 
tool that meets, at a minimum, the specifications required in the above 
subparagraph E. Respondent will repair all defects identified through the 
reevaluation or re-inspection on a schedule that at a minimum comports with the 
deadlines set out in 49 C.F.R.  195.452(h)(4). Respondent will repair all 
conditions defined in 49 C.F.R.  195.452(h)(4)(i) through (iv) and in compliance 
with 49 C.F.R. $ 195.422. 
G. 
Respondent will establish a documented feedback process within 3 months 
from the Effective Date of this Consent Agreement for approval by the Director, 
Western Region, OPS. The feedback process will provide accurate information 
from Respondent's personnel to any internal inspection tool vendor regarding the 
correlation of field non-destructive examinations and internal inspection tool data. 
The process will include procedures to perform excavations and assess pipeline 
conditions and anomalies in the field, and to correlate the information obtained in 
the field with internal inspection data. Upon approval of the Director, Respondent 
will comply with all aspects of the required process and its procedures. In 
addition, Respondent will provide comprehensive and effective training to all 
personnel responsible for non-destructive testing to ensure their ability to 
implement these requirements. 
H. 
Respondent will develop a uniform right-of-way stationing system that utilizes, 
at a minimum, girth weld position numbering to correlate internal inspection tool 
data with pipeline locations. Respondent will submit a proposal within 3 months 
from the Effective Date of this Consent Agreement for the system to be used to 
the Director, Western Region, OPS for approval. Upon approval, Respondent will 
use this stationing system to correlate pipeline locations with internal inspection 
tool data, cathodic protection and close interval survey data, and any other 
pipeline inspection data. 
15. 
Within 60 days of the Effective Date of this Consent Agreement, Respondent will 
submit for review and approval by the Director, Western Region, OPS, the procedure(s) 

that define its one-call damage prevention activities for excavations along its pipeline 
right-of-way(s). The procedures must include provisions to provide on-site monitoring 
during mechanized excavation activities in close proximity to Respondent's pipeline 
facilities. 
16. 
Respondent will incorporate all work products and data resulting from Paragraphs 1 1 
through 15, as applicable, into its Integrity Management Program procedures and manual 
for Operations, Maintenance, and Emergencies. 
17. 
Respondent will create a secure, encrypted website, accessible only by OPS and its 
agents acting pursuant to Federal authorization, that enables access to all technical final 
documents, required submissions, and status of work pursuant to this Consent 
Agreement. Wherever applicable, information on the website will be correlated to the 
uniform stationing system developed pursuant to Paragraph 14H. The website will be 
operational within 3 months of the Effective Date of this Consent Agreement. The 
website will be populated with relevant data on a rolling basis, with any submissions 
required under this Consent Agreement being posted to the website on or before the 
specified deadline. Respondent may make all assertions and claims available pursuant to 
Section VII (Information Disclosure) regarding information posted on this website. 
18. 
Within 30 days of the date of this Consent Agreement, Respondent will submit to the 
Director, Western Region, OPS, a list of names of proposed independent experts to be 
retained by Respondent for each task that requires utilization of an independent expert. 
Each expert proposed by Respondent must be qualified to carry out the applicable 
requirements of the task for which that expert is proposed. No expert proposed will have 
been previously or materially involved in the development of the activity he or she will be 
reviewing. Respondent will submit information sufficient for the Director to determine 
whether each expert possesses the necessary qualifications. After reviewing the 
information submitted by Respondent, the Director may approve one or more of the 
names submitted or disapprove any or all of the names. 
111. 
Review and Approval Process 
19. 
With respect to each submission that under this Consent Agreement requires the 
approval of the Director, Western Region, OPS, the Director may: (a) approve, in whole 
or in part, the submission, (b) approve the submission on specified conditions, (c) 
disapprove, in whole or in part, the submission, or (d) any combination of the foregoing. 
In the event of approval, approval in part, or approval upon conditions, Respondent will 
proceed to take all action required by the submission as approved by the Director, subject 
to Respondent's right to invoke the dispute resolution procedures in Section VI with 
respect to any conditions identified by the Director. In the event that the Director 
disapproves all or any portion of the submission, the Director will provide Respondent 
with a written notice of the deficiencies. Respondent will correct all deficiencies within 
the time specified by the Director and resubmit it for approval. In the event that a 

resubmitted item is disapproved in whole or in part, the Director may again require 
Respondent to correct the deficiencies in accordance with the foregoing procedure, 
subject to Respondent's right to invoke the dispute resolution procedures in Section VI. 
IV. 
Force Majeure 
20. 
Respondent agrees to perform all terms of this Consent Agreement within the 
timefi-ames established under this Consent Agreement, unless performance is delayed by 
a force majeure. For purposes of this Consent Agreement, a force majeure is defined as 
any event arising fi-om causes beyond the control of Respondent, or any entity controlled 
by Respondent or Respondent's contractors, which delays or prevents performance of any 
obligation under this Consent Agreement despite Respondent's best efforts to fulfill the 
obligation. Force majeure does not include financial inability to complete activities 
required under Section I1 (Work to Be Performed), increased cost of performance, or 
changes in Respondent's business or economic circumstances. 
21. If an event occurs or has occurred that may delay the performance of any term of this 
Consent Agreement beyond the approved timefkame, whether or not caused by a force 
majeure event, Respondent shall verbally notify the Director, Western Region, OPS 
within 5 business days of when Respondent knew or should have known that the event 
might cause a delay. Such notice shall identify the cause of the delay or anticipated delay 
and the anticipated duration of the delay; state the measures taken or to be taken to 
prevent or minimize the delay; and estimate the timetable for implementation of those 
measures. Failure to comply with the notice provision of this paragraph and to undertake 
best efforts to avoid and minimize the delay shall waive any claim of force majeure by 
Respondent. Respondent shall be deemed to have notice of any circumstances of which 
its contractors had or should have had notice. 
22. 
If the Director, Western Region, OPS determines that a delay or anticipated delay in 
performance is or was attributable to a force majeure, then the time period for the 
performance of that term will be extended as deemed necessary by the Director. The 
Director will notify Respondent, in writing, of the length of any extension of performance 
of such terms affected by the force majeure. Any such extensions shall not alter 
Respondent's obligation to perform or complete other terms of this Consent Agreement 
which are not directly affected by the force majeure. 
V. 
Stipulated Penalties 
23. 
In the event that Respondent fails to comply with any requirement of this Consent 
Agreement, Respondent shall be liable for stipulated penalties unless a force majeure 
event has occurred and PHMSA has approved the extension of a deadline, in accordance 
with Section IV (Force Majeure). Compliance with this Consent Agreement by 
Respondent includes completion of any term of this Consent Agreement within the 
timefi-ame approved under this Consent Agreement. 

24. 
The following stipulated penalties shall be payable per instance of failure to comply 
per day: $1,000 per day for the 1st through 10th days of noncompliance; $5,000 per day 
for the 1 lth through 30th days of noncompliance; and $10,000 per day for each day of 
noncompliance thereafter. Penalties shall begin to accrue on the day after performance is 
due and shall continue to accrue through the final day of completion or correction of the 
activity. Payment shall be due within 30 days of receipt of a demand letter from PHMSA. 
Nothing herein shall prevent the simultaneous accrual of separate stipulated penalties for 
separate instances of noncompliance with this Consent Agreement. With respect to any 
noncompliance which is contested in accordance with the dispute resolution procedures 
set forth in Section VI of this Consent Agreement, stipulated penalties shall continue to 
accrue as provided in this Paragraph during dispute resolution, but need not be paid until 
the resolution of the dispute in accordance with that Section. In such event, all stipulated 
penalties due shall be paid within 15 days of the issuance of the determination by the 
Director, Western Region, OPS, or if that determination is appealed to the Associate 
Administrator, within 15 days of the decision of the Associate Administrator. In the 
event Respondent prevails in a claim subject to dispute resolution under Section VI of 
this Consent Agreement, Respondent shall not owe any stipulated penalties based on such 
claim. 
25. 
Respondent shall make payments of any stipulated penalties by wire transfer through 
the Federal Reserve Communications System to the account of the U.S. Treasury in 
accordance with the procedures PHMSA has established under 49 C.F.R. 8 89.21. Upon 
making a payment, Respondent shall send a separate notification of that payment to the 
Chief Counsel, Office of Chief Counsel, PHMSA, U.S. Department of Transportation, 
Room 8417,400 7th Street SW, Washington DC, 20590. 
26. 
Payments of penalties shall not alter Respondent's obligation to comply with the 
terms and conditions of this Consent Agreement. The stipulated penalties set forth herein 
do not preclude PHMSA from pursuing any other remed.ies or sanctions which may be 
available to PHMSA by reason of Respondent's failure to comply with the Consent 
Agreement. 
VI. 
Dispute Resolution 
27. 
PHMSA and Respondent will informally attempt to resolve any disputes arising under 
this Consent Agreement. Respondent and a lead inspector to be designated by the 
Director, Western Region, OPS will first confer in an effort to resolve the dispute. If 
Respondent and the lead inspector are unable to informally resolve the dispute within 15 
days, Respondent may request in writing, within 10 days, a written determination 
resolving the dispute by the Director, Western Region, OPS. The request will provide all 
information that Respondent believes is relevant to the dispute. If the request is 
submitted as provided herein, the Director will issue a determination in writing. 
Respondent shall notify the Director in writing within 7 days of receipt of the Director's 

determination whether Respondent intends to proceed in accordance with the Director's 
determination. The Director's determination shall no longer be subject to dispute 
pursuant to this Consent Agreement, unless within 7 days of receipt of the Director's 
determination, Respondent files an appeal with the Associate Administrator for Pipeline 
Safety. The Associate Administrator will issue a written decision after receipt of 
Respondent's appeal. Respondent shall notify the Director and the Associate 
Administrator in writing within 7 days of receipt of the Associate Administrator's 
decision whether Respondent intends to proceed in accordance with the Associate 
Administrator's decision. 
28. 
PHMSA reserves all of its rights to seek enforcement of this Consent Agreement 
andlor any other appropriate relief in the event that Respondent does not proceed in 
accordance with the Director's determination, or if appealed, in accordance with the 
Associate Administrator's decision. The existence of a dispute and PHMSA's 
consideration of matters placed in dispute shall not excuse, toll, or suspend any term or 
timeframe for completion of a term imposed by this Consent Agreement during the 
pendency of the dispute resolution process except as agreed by the Director in writing. 
VII. 
Information Disclosure 
29. 
For any deliverables required to be submitted to PHMSA pursuant to this Consent 
Agreement, Respondent may assert a claim of business confidentiality, or for any other 
protections applicable to the release of information by PHMSA, covering part or all of the 
information required to be submitted to PHMSA pursuant to the terms of this Consent 
Agreement. The claim of confidentiality shall be in writing, shall accompany the 
submission of information to be covered, and shall include a statement specifying the 
grounds for the claim of confidentially. If Respondent has submitted such claim 
accompanying the submission of information, PHMSA shall consider the claim as a 
statement of objection to release of the information. PHMSA shall release information 
submitted pursuant to this Consent Agreement only in accordance with 49 C.F.R. Part 7, 
the Freedom of Information Act, 5 U.S.C.  552, and other applicable regulations and 
Executive Orders. 
30. 
Respondent may assert that certain documents, records and other information are 
privileged under the attorney-client privilege or any other privilege recognized by federal 
law. If Respondent asserts such a privilege in lieu of providing documents, Respondent 
shall provide PHMSA with the following: (1) the title of the document, record, or 
information; (2) the date of the document, record, or information; (3) the author's name 
and title; (4) the name and title of each addressee and recipient; (5) a description of the 
contents; and (6) the privilege asserted by Respondent. However, no documents, reports, 
data, or other information required to be created or submitted to PHMSA pursuant to the 
requirements of this Consent Agreement shall be withheld from PHMSA on the grounds 
that they are privileged. 

31. 
Nothing in this Consent Agreement shall be construed to limit PHMSA's right of 
access, entry, inspection, and information gathering pursuant to applicable law, including 
but not limited to the Pipeline Safety Act, 49 U.S.C. 8 60101 et seq., or regulations 
promulgated thereunder. 
VIII. 
Timeliness 
32. 
Unless otherwise specified herein, all actions, decisions or determinations required to 
be undertaken pursuant to this Consent Agreement shall be made in a timely manner. 
IX. 
Effective Date 
33. 
The "Effective Date" as used herein is the date on which this Consent Agreement has 
been signed by both Respondent and PHMSA. Unless specified to the contrary, all 
deadlines for actions required by this Consent Agreement run from the Effective Date of 
the Consent Agreement. 
X. 
Termination 
34. 
This Consent Agreement shall terminate upon the completion of all terms set forth in 
Section I1 (Work to Be Performed). Respondent may request written confirmation from 
PHMSA when this Consent Agreement is terminated. Further, prior to termination, but 
not earlier than 5 years after the Effective Date, Respondent may request confirmation 
from PHMSA that all of the requirements of Section I1 (Work to Be Performed), with the 
exception of those set forth in Paragraph 13, have been completed by Respondent. 
XI. 
Ratification 
35. 
The Parties hereby agree to all conditions and terms of this Consent Agreement: 
For PHMSA: For Respondent: 
for Pipeline Safety Kinder Morgan Energy Partners 
Date