1. An OPS inspection to verify correction of deficiencies identified in previous inspections.
   
2. OPS verification of changes to the KMI corporate Operations & Maintenance Manual that are being made in response to previously identified deficiencies.
   
3. KMI documentation of the company's approach to guard against risks associated with longitudinal weld seam corrosion in flash-weld pipe, through the use of hydrostatic testing in conjunction with in-line inspection with a flaw repair criteria.
   
4. Revision of KMI technical justification for risk management alternatives along the Gulf Coast and Louisiana lines to reflect additional damage prevention activities that are currently carried out or planned:
   
   • scheduled and planned contacts with LEPCs and emergency responders
     
   • additional patrolling that is carried out in the course of other activities along the pipeline ROW, beyond the nominal quarterly patrolling frequency
     
   • expansion of contact with contractors beyond that currently carried out.
5. Deformation tool runs and close interval surveys along the risk management sections of the Amarillo and Louisiana lines.

• NGPL and OPS are completing actions defined in the April 27 Project Review Team Meeting. It is expected that the PRT will soon consider NGPL's revised technical justification of its risk management alternative activities to evaluate the risk reduction achieved by the alternatives in comparison to regulatory requirements.

• The deformation tool run expected for the Amarillo #3 line proposed risk management segment in October has been postponed until Spring, 2000. NGPL indicated that, because of gas demand, it is difficult at this time to run the tool. The Close Interval Survey for coating evaluation of this line has also been rescheduled for 2000.

• NGPL submitted environmental information on the risk management pipeline segments to be incorporated in the environmental assessment that will be prepared for approval of the risk management alternatives.

• Because of expected regulatory changes, NGPL has elected not to pursue risk management alternatives in the area of in-service weld repair. Related work items will be removed from the project work plan.

• NGPL provided a revised work plan.

• NGPL is implementing the C-FER PIRAMID risk assessment and maintenance optimization model, as well as an adjunct decision model to be applied in its capital budgeting process.

Gulf Coast Lines #1 and #2 - July 9, 12
Louisiana Line #1 (2 segments) - August 9-23
Louisiana Line #2 (2 segments) - September 7-20
Amarillo #3 - September 8-9

In-line metal loss inspections were conducted on 2 segments each on the Louisiana Lines #1 (July 21) and #2 (July 24).

Sempra Acquisition of KN Terminated:

June 21, 1999

Earlier announced plans for Sempra Energy to acquire KN Energy have been terminated.

Proposed Risk Management Pipeline Segments Pigged:

April, 1999

The NGPL proposed risk management alternative activities include in-line inspection of seven extended pipeline segments surrounding sections that have undergone class changes. In-line metal loss and deformation inspections were run for two of these segments on the Gulf Coast #1 and #2 lines over April 21-29, 1999.

KN Presentation of Risk Management Alternatives and Technical Justification to OPS Project Review Team:

April 27, 1999

KN presented its risk-based argument to justify regulatory alternatives along 7 pipeline segments. Based on its analysis, KN indicated the alternatives achieved superior safety on segments on the Amarillo #3, Gulf Coast #1 & #2, and Louisiana #1 & #2 lines.

The PRT defined additional information that was needed to ensure that the alternatives achieved superior safety. Actions were defined for OPS and KN to obtain this information. Actions included KN providing OPS with in-line inspection results and pipeline leak history data for the risk management demonstration pipeline segments.

Sempra Plans to Acquire KN Energy:

February 23, 1999

Sempra Energy, based in San Diego, CA, yesterday announced plans to buy KN Energy, Inc. Sempra was formed last year through the merger of Pacific Enterprises and Enova Corp. Its subsidiaries include Southern California Gas Co. and San Diego Gas & Electric. Sempra and KNE expect the acquisition to be completed in six to eight months.

Federal Register Notice of Approval and Finding of No Significant Impact:

January 21, 1999

KN Energy/Natural Gas Pipeline Company's proposed Risk Management Demonstration Project has been approved by the Office of Pipeline Safety (OPS). As part of the OPS demonstration project review process, an Environmental Assessment (EA) was prepared for the KN project. The EA was published in the Federal Register on September 1st, 1998 for public comment. OPS did not receive any comments on the EA or its conclusions. OPS has determined that there are no significant environmental impacts from approving the KN demonstration project. Therefore, a Finding of No Significant Impact (FONSI) was issued and published in the Federal Register on January 7, 1999.

KN Energy/NGPL Demonstration Project Approved:

January 12, 1999

U.S. Secretary of Transportation Rodney E. Slater announced in a January 11th press release that KN Energy/NGPL will participate in the OPS Risk Management Demonstration Program. On December 31, 1998, Richard Felder, the Associate Administrator for the Office of Pipeline Safety, signed the Order authorizing KN to initiate its risk management demonstration project. KN is the first gas pipeline company to be included in the risk management demonstration program.

Additional information on the KN demonstration project can be found in the risk management demonstration project application and revised work plan, which are attached to the order.

Acquisition of NGPL by KN Energy:

October  6, 1998

KN Energy, Inc., headquartered in Lakewood, Colorado, has recently acquired Natural Gas Pipeline of America (NGPL). A meeting was held on September 27 in Washington, D.C. between OPS and KN Energy management to discuss the potential impact of this corporate change on NGPL's proposed risk management program. The results of this meeting included some additional requests for information from KN Energy that will be needed prior to OPS approval of the demonstration project.

Federal Register Notice / Environmental Assessment Available:

September  1, 1998

A Federal Register Notice that OPS intends to approve Natural Gas Pipeline Company as a participant in the Pipeline Risk Management Demonstration Program was issued on September 1, 1998. This notice also provides an environmental assessment of NGPL's demonstration project. Based on this environmental assessment, OPS has preliminarily concluded that this project will not have significant environmental impacts.

The Federal Register Notice explains OPS's rationale for approving this project, and summarizes the demonstration project provisions (including affected locations and risk control and monitoring activities) that would go into effect once OPS issues an order approving NGPL as a Demonstration Program participant.

OPS seeks public comment on the proposed demonstration project on or before October 1, 1998, so that it may consider and address these comments before approving the project. You can view the official public record of the published NGPL Federal Register Notice by visiting the DOT Dockets Search Page and from there following the steps to search for docket number 4034 to view the public record for the NGPL FRN.

NGPL Prospectus Available:

August 31, 1998

A Prospectus describing the NGPL demonstration project has been prepared and is being distributed to interested parties, including local stakeholders. Individuals who have not received a copy of the Prospectus and would like to receive one can request a copy by E-Mail using the Feedback button below. In your message, state that you would like to receive a copy of the NGPL Prospectus and include your name and mailing address.

The Prospectus can also be downloaded from PRIMIS and read using the Adobe Acrobat Reader.