HOUSTON, April 10, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Kinder Morgan Energy Partners,
L.P. (NYSE: KMP) today announced it has entered into a Consent Agreement with
the U.S. Department of Transportation's Pipeline and Hazardous Materials
Safety Administration (PHMSA) as a collaborative resolution of a Corrective
Action Order (CAO) issued by PHMSA in August 2005 that addressed pipeline
integrity issues on KMP's Pacific system. KMP has already initiated many of
the corrective actions identified in the original order.
"We are pleased to enter into this Consent Agreement with PHMSA," said
Products Pipelines President Tom Bannigan. "Both KMP and PHMSA share common
goals toward public safety, and we believe our joint efforts will result in
improved safety for the Pacific system. The Consent Agreement is an excellent
resolution to the CAO issued last August, and we remain committed to operating
our pipelines safely to protect the public, the environment and our
Under the Consent Agreement, KMP will: conduct a broad analysis of past
incidents and threats, and using a third-party independent expert, develop a
remediation plan to address, mitigate or prevent those threats on the system
in the future; enhance its internal line inspection efforts with respect to
third party damage and corrosion threats, as well as broaden its corrosion
assessment program; and, implement a state-of-the-art data integration system
that will graphically display integrity information regarding the company's
Pacific Operations, such as data from internal inspection tools, cathodic
protection and coating surveys, excavation and inspection information. These
improvements will be incorporated into the company's Integrity Management
KMP will spend approximately $90 million on pipeline integrity activities
for its Pacific pipelines over the next five years. Of that $90 million,
approximately $26 million is related to this consent agreement. Bannigan
noted these costs were already incorporated into KMP's 2006 budget and its
future financial expectations.
KMP's Pacific Operations are comprised of approximately 3,100 miles of
pipelines and terminals in Arizona, California, Nevada, New Mexico, Oregon and
Kinder Morgan Energy Partners, L.P. is one of the largest publicly traded
pipeline limited partnerships in America and owns or operates more than 27,000
miles of pipelines and approximately 145 terminals. Its pipelines transport
more than 2 million barrels/day of gasoline and other petroleum products and
up to 9 billion cubic feet/day of natural gas; and, its terminals handle over
80 million tons of coal and other bulk materials annually and have a liquids
storage capacity of about 70 million barrels for petroleum products and
chemicals. KMP is also the leading provider of CO2 for enhanced oil recovery
projects in the United States.
The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI),
one of the largest energy transportation, storage and distribution companies
in North America. Combined, the two companies have an enterprise value of
more than $35 billion.
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.
SOURCE Kinder Morgan Energy Partners, L.P.
Lorena Guilanshah, Media Relations, +1-713-369-8060, or Mindy Mills, Investor
Relations, +1-713-369-9490, both for Kinder Morgan Energy Partners, L.P.