1. KINDER MORGAN ENERGY PARTNERS, L.P. Experience with Stress Corrosion Cracking (SCC) Scott Davis – Director of Pipeline Integrity and Facilities Engineering

2. KINDER MORGAN ENERGY PARTNERS, L.P. Outline KMP Liquids Pipelines July 30, 2003 Failure Repair and Start-up Sequence SCC Investigation Strategy SCC Investigation Status and Results

3. KINDER MORGAN ENERGY PARTNERS, L.P. KMEP Liquids Pipelines

4. KINDER MORGAN ENERGY PARTNERS, L.P. 8” Tucson to Phoenix Release Location

5. KINDER MORGAN ENERGY PARTNERS, L.P. July 30, 2003 Failure Approximately 13:09 line failure SCADA alarm and Controller shutdown within 3 minutes Operators dispatched and line isolated Line excavated and exposed

6. KINDER MORGAN ENERGY PARTNERS, L.P. Repair and Start-up Sequence Visual examination, suspected seam weld failure Entire joint replaced by August 1, 2003 Line re-started at 50% of MOP (~34% SMYS)

7. KINDER MORGAN ENERGY PARTNERS, L.P. Pressure Test Protocol Metallurgist identified SCC on August 8, 2003 Line shut down for further testing Pressure test in 2 sections –“Spike” test of 1 hour at 139% of MOP –8 hours at 125% of MOP Testing commenced on August 20, 2003 One test successful

8. KINDER MORGAN ENERGY PARTNERS, L.P. Pressure Test Failure 2 nd test unsuccessful –Failed in 1 st minute at 139% MOP –40’ from original failure –Intermittent SCC cluster length 6” –SCC ranged from 50-86% wt

9. KINDER MORGAN ENERGY PARTNERS, L.P. Return to Operation Bypassed 8” pipe near failure on August 24 Replaced 5400 feet of pipe in the immediate vicinity Successful pressure test of section 2 Line restarted on September 12, 2003 Currently operating at 50% MOP Increasing pressure dependant on results of SCC investigation

10. KINDER MORGAN ENERGY PARTNERS, L.P. High pH SCC Still requires –Environment that is conducive to SCC –Susceptible pipeline material –Tensile stress in the pipeline steel Differences: –No surface corrosion products –CP is adequately protecting the steel –Higher published stress threshold

11. KINDER MORGAN ENERGY PARTNERS, L.P. SCC Investigation Strategy 1.Gather and investigate pipeline data 2.Develop algorithm to predict SCC likelihood 3.Complete case study on removed 5400’ 4.Predict terrain conditions conducive to SCC 5.Conduct field geotechnical, CIS, and PCM 6.Select locations for excavations 7.Conduct field excavations 8.Reintegrate excavation findings

12. KINDER MORGAN ENERGY PARTNERS, L.P. SCC Investigation Status and Results MPI conducted on 5400’ of removed 8” SCC found in pressure test failure joint SCC found in 1 joint approx. 1800’ upstream Field surveys have been completed Finalizing excavation locations Anticipated completion prior to year end

13. KINDER MORGAN ENERGY PARTNERS, L.P. Contact Information Scott P. Davis Director – Pipeline Integrity and Facility Engineering Kinder Morgan Energy Partners 1100 Town & Country Drive Orange, California 92868 E-mail: daviss@kindermorgan.com