400 Seventh Street, S.W U.S. Department Washington, D.C. 20590 of Transportation Pipeline and Hazardous Materials Safety Administration Robert Hogfoss, Esquire Hunton & Williams LLP Bank of America Plaza Suite 4 100 600 Peachtree Street, N.E. Atlanta, GA 30308-22 16 RE: Petition for Reconsideration or Clarification Kinder Morgan Energv Partners, L.P., CPF No. 1-2004-5004 Dear Mr. Hogfoss: As you know, on June 26,2006 the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a Final Order to Kinder Morgan Energy Partners, L.P. (Re. CPF No. 1-2004- 5004). 1 am in receipt of your letter for Request for Further Extension to File Petition for Reconsideration dated December 14,2006 and your Petition for Reconsideration or Clarification dated July 17,2006. Over the last several months we have met with Kinder Morgan to discuss and clarify the scope and timing of compliance directed by our Final Order. At these meetings we discussed completion dates for assessments and remediation of lowfrequency electric resistance welded (ERW) pipe and the propensity for some pipe to be susceptible to stress corrosion cracking (SCC). In addition, PHMSA issued a Corrective Action Order (CAO) to Kinder Morgan requiring a pressure reduction and a remediation plan. The CAO-related remediation plan requires a third-party review of Kinder Morgan's pig logs for axial flaws in ERW. Kinder Morgan has complied with our CAO by developing a new process to evaluate pig logs to better identify cracks. This process is more time consuming than the traditional evaluation process. However, it is our opinion that the benefits far outweigh the cost needed for testing. In light of the time required for the new process and amount of pipe that needs to be evaluated, Kinder Morgan's proposed remediation plan provides for completing pig runs in ERW pipe by 2010, with remediation completed by 201 1. We believe that the above times are consistent with the terms in CPF No. 1-2004-5004. During our Integrity Management Plan (IMP) inspection we verified that SCC and axial flaw detection in ERW pipe are included in Kinder Morgan's IMP, Kinder Morgan's proposed remediation plan for evaluating pipe for potential seam failures according to Kiefner's protocols is consistent with IMP regulations and consistent with the terms of the Final Order. Notwithstanding, Kinder Morgan must demonstrate that use of its newly developed evaluation techniques for Rosen's Axial Flaw Detection (AFD) tool is appropriate for finding and classifying linear cracks in ERW pipe. To confirm the AFD tool's abilities, PHMSA technical staff and its contractor met with Kinder Morgan in Houston, Texas on December 5-7, 2006. PHMSA is in the process of evaluating the reliability of Kinder Morgan's overall process and, specifically, Kinder Morgan's plan to use the AFD tool and the GE-Ultra Sound Crack Detection tool to evaluate linear flaws in ERW pipe identified in its hazardous liquid pipelines IMP Plan. We appreciate your cooperation in resolving compliance issues associated with the June 26, 2006 Final Order. Pending our evaluation of information gathered from the December 5-7th meetings, I am extending the deadline for Kinder Morgan to file any petition for reconsideration to January 19,2007. for Pipeline Safety cc: William Gute, Director, National Field Coordinator, PHMSA Joy Kadnar, Director, Engineering and Emergency Support, PHMSA Mark Wendorff, Acting Director, Eastern Region, PHMSA Rodrick Seeley, Director, Southwest Region, PHMSA Chris Hoidal, Director, Western Region, PHMSA Ivan Huntoon, Director, Central Region, PHMSA Linda Daugherty, Director, Southern Region, PHMSA