Close Window

Printer Friendly Version Print Version
Kinder Morgan Completes Settlement with U.S. Department of Justice

HOUSTON--(BUSINESS WIRE)--Aug. 13, 2008--Kinder Morgan Bulk Terminals Inc., a subsidiary of Kinder Morgan Energy Partners, L.P., today announced it has completed a settlement with the U.S. Attorney's office for the District of Oregon and the U.S. Department of Justice regarding a former employee's involvement in the improper disposal of potash (potassium chloride - a substance sometimes used as a salt substitute and also as a fertilizer) into the Pacific Ocean in 2003. Potash arrives at the company's terminal in Portland, Ore., via rail cars and is subsequently loaded onto bulk cargo vessels for shipment overseas. The incident occurred in August 2003 when the employee made arrangements to have a customer's shipment of potash, which had become wet and no longer met specifications for commercial use, improperly disposed of at sea without a permit.

As part of the settlement, the government and the company acknowledge in a joint factual statement filed with the court that:

  • no harm was done to the environment,
  • the former employee's actions constituted a violation of company policy,
  • the company did not benefit financially from the incident, and
  • no Kinder Morgan personnel outside of the terminal either approved or had any knowledge of the former employee's arrangements.

The company entered a plea to a criminal violation of the Ocean Dumping Act and will pay a $156,000 fine and make an $84,000 community service payment to the Oregon Governor's Fund for the Environment. The company initially announced this matter was under investigation in 2004, fully cooperated with the government's investigation and promptly adopted measures at the terminal to avoid future incidents of this nature.

Kinder Morgan Energy Partners, L.P. (NYSE:KMP) is a leading pipeline transportation and energy storage company in North America. KMP owns an interest in or operates more than 25,000 miles of pipelines and 165 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals and handle bulk materials like coal and petroleum coke. KMP is also the leading provider of CO2 for enhanced oil recovery projects in North America. One of the largest publicly traded pipeline limited partnerships in America, KMP has an enterprise value of over $20 billion. The general partner of KMP is owned by Knight Inc. (formerly Kinder Morgan, Inc.), a private company.

This news release includes forward-looking statements. Although Kinder Morgan believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in Kinder Morgan's Forms 10-K and 10-Q as filed with the Securities and Exchange Commission.

CONTACT: Kinder Morgan Energy Partners, L.P., Houston
Media Relations
Emily Mir Thompson, 713-369-8060
Investor Relations
Mindy Mills, 713-369-9490

SOURCE: Kinder Morgan Energy Partners, L.P.