Transportation Department Orders Kinder Morgan to Address Rise in Pipeline Incidents

U.S. Department of Transportation
Pipeline and Hazardous Materials Safety Administration
Thursday, August 25, 2005
Contact: James Wiggins/Damon A. Hill
Tel.: (202) 366-4831

The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) today announced it ordered Kinder Morgan Energy Partners (KMEP) to address a recent increase in incidents along its hazardous liquids pipeline system. The agency issued a Corrective Action Order requiring KMEP to comprehensively address integrity threats along the entire 3,900-mile Pacific Operations unit.

The order requires a thorough analysis of recent incidents, a third-party independent review of operations and procedural practices, and a restructuring of KMEP’s internal inspection program. KMEP must have a revised integrity management plan approved by PHMSA within 120 days. Failure to comply may result in an assessment of civil penalties of as much as $100,000 per day.

Since January 1, 2003, KMEP has experienced at least 44 accidents with some 14 resulting in the release of more than five barrels of refined petroleum products, some in or near environmentally sensitive areas or major transportation corridors.

“Our investigations into these incidents identified inadequacies in Kinder Morgan’s interpretation of in-line inspection information to evaluate and repair their pipeline systems,” said PHMSA Acting Chief Safety Officer Stacey Gerard. “It is imperative for operators to utilize the most comprehensive set of technologies available to improve their ability to consistently characterize and address every possible threat their systems pose to public safety.”

Recent PHMSA investigations of these accidents, and reviews of KMEP’s operations and procedures, prompted the agency Order requiring KMEP to apply technologies and procedures to help evaluate its pipelines, Gerard said.

PHMSA pipeline engineers and agency State Pipeline Safety Program partners will continue to carefully monitor and scrutinize KMEP’s activities.

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Corrective Action Order - Kinder Morgan Energy Partners, L.P.
August 24, 2005 | News Release
- regarding KM's Pacific Operations - systems in California, Nevada, Arizona, New Mexico and western Texas.

Final Order - Kinder Morgan Energy Partners, L.P.
April 22, 2005
- Rockland CA to Reno NV

Final Order - Kinder Morgan Energy Partners, L.P.
March 23, 2005
- finding of violation and assessing $25,000 fine

Corrective Action Order - Kinder Morgan Energy Partners L.P.
May 1, 2004
- Concord to Sacramento

All pipeline operators at one time or another come under the finger-wagging oversight of OPS, including Terasen, the recent willing takeover subject of Kinder Morgan.

Final Order - Trans Mountain Oil Pipe Line Company (a Terasen company)
June 6, 2005
- regarding adherence to maintenance and inspection standards on the TM pipeline in BC and WA