U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration UPDATE Montana Pipeline River Crossings PHMSA\Office of Pipeline Safety 2/8/2012

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Focus 1.Petroleum pipelines (crude oil and refined products) 2.Major river crossings (greater than 100 feet) 3.Located in Montana and rivers flowing into Montana 4.Constructed with open-trench technology 5.Exposed or lack of depth-of-cover 6.River characteristics

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Information Collected or Obtained Depth of Cover Surveys Mainline Valve Alignment Sheets & Actuation Method Worst Case Discharge Integrity Threats Reports/Studies Analysis Used for Remedial Actions (stream flow, depth-of- cover Remedial Actions taken in 2011 –Short-term Remedial Action Schedule –Long-term Remedial Action Schedule Procedures to Monitor During Flood Conditions

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Progress Since July 2011 Release ExxonMobil –HDD completed: Yellowstone River (Laurel) –HDD completed: Rock Creek –HDD completed: Clark’s Fork CHS –Musselshell River: sandbag and increased patrolling –3 rd party analysis on Musselshell River HDD will be complete before spring runoff

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration EMPL - Preparing Pipe for Installation Under Yellowstone River - 8/27/11

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration CHS Musselshell HDD – 2/6/12

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Progress Since July 2011 Release Cont. ConocoPhillips –Depth-of-Cover surveys conducted for all major crossings –Belt Creek: added cover –Judith River: Grout bags/spring monitoring –Beauvais Creek: HDD completed –Coure d’Alene River: Grout bags/temporary repairs (Campground Rd, Sliver Bridge & Mile Post 476) –Beaver Creek: Line lowered (Refrigerator Canyon & Winston) –Tongue River (WY): Grout bags/spring monitoring

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Progress Since July 2011 Release Cont. KinderMorgan –Clark Fork of Yellowstone River; Greybull River; Musselshell River: depth-of-cover surveys Marathon (Wyoming) –Shoshone River; Wind River; Big Horn River: depth-of- cover surveys True (Bridger Pipeline) –Poplar River/Missouri: Took out of service during flooding event –Yellowstone River and Poplar River: 2011 depth-of-cover surveys conducted and show adequate cover

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Montana River Crossings OperatorMT Major River Crossings (open-cut & greater than 100 feet) ExxonMobil1 CHS3 Conoco Phillips16 Plains0 Marathon (Wyoming)3 Kinder Morgan4 ONEOK1 (HVL) True2 * Note: Montana Refining less than 5 miles with no water crossings

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Planned Remediation Measures ExxonMobil –Monitor as normal (3 crossings were HDD’d since July 2011). Implement procedures to monitor during flooding CHS –Musselshell River: HDD planned before 2012 spring runoff – Tongue River: HDD planned in 3-5 years KinderMorgan –Monitor as normal. Implement procedures to monitor during flooding conditions Marathon –Monitor as normal. Implement procedures to monitor during flooding conditions

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration ConocoPhillips –Yellowstone Pipe Line: HDD across Clark Fork River at MP (just east of Missoula) before Spring runoff –Yellowstone Pipe Line: stabilize with grout bags across East Gallatin River at MP and install MOV before 2012 spring runoff & plan HDD in 2012 –Glacier Pipe Line: stabilize with grout bags across Judith River at MP before 2012 spring runoff; 2012 HDD –Glacier Pipe Line: Monitor & plan future mitigation across Missouri River at MP (stable bedrock trenched crossing) –Seminoe Pipe Line: Big Horn River – 2012 HDD –Other Remediation has been risk ranked for completion True (Bridger Pipeline) –Yellowstone River and Poplar River: Continue to monitor through depth of cover surveys and ILI

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration PHMSA’s Immediate Area of Focus What is PHMSA’s immediate focus for 2012 Spring Runoff: –CHS Musselshell River: Exposed line. Finish HDD by end of 2/2012 –Conoco Phillips Clark Fork: Install HDD prior to 2012 runoff East Gallatin River (MP 148.3): Exposed line plan to install motor-operated valve before spring runoff. HDD later in 2012 Missouri River (MP 269.3): Exposed line in stable bedrock trenched crossing plan - Either HDD, New Trenched Crossing, Armoring, or Line Lowering

U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration Next Steps Continue collecting and aggregating data Monitor planned on-going remediation activities Inspect new construction and remediation activities of water crossings Ongoing information exchange with State, including the need for safety enhancements at water crossings Develop enforcement actions for operator’s not following remedial action plans