Energy Transfer 2015 Annual Report Download - page 67

Table of Contents
In November 2013, the DOT issued a Notice of Violation and proposed penalties in excess of $0.1 million based on alleged violations of various safety
regulations relating to the February 2012 products release by FGT in Baton Rouge, Louisiana. We received an initial assessment of $0.2 million associated
with this release. In January 2016, FGT resolved this matter by paying a portion of this assessment, without material impact, and submitting a compliance
plan. DOT issued a Final Order resolving the matter, subject to the completion of certain compliance plan activities which are ongoing.
On or around December 24, 2014, PHMSA issued to Panhandle a Notice of Proposed Safety Order (the “Notice”) regarding the ETP\Panhandle pipeline
system. The Notice stated that PHMSA had initiated an investigation of the safety of the ETP/Panhandle pipeline system and specifically referenced two
incidents: 1) a November 28, 2013, incident on ETP/Panhandle’s 400 line approximately 4.7 miles downstream of the Houstonia compressor station near
Hughesville, Missouri, and 2) an October 13, 2014, failure on the ETP/Panhandle 100 line near Centerview, Missouri. The Notice further mentioned other
incidents on the ETP/Panhandle pipeline system that PHMSA claims to have addressed with ETP/Panhandle. The Notice also stated that “[a]s a result of
[PHMSA’s] investigation, it appears that conditions exist on the ETP/Panhandle pipeline system that pose a pipeline integrity risk to public safety, property
or the environment.” ETP/Panhandle responded to the Notice and participated in a settlement of this proceeding and entry into a Consent Agreement
effective as of April 1, 2015.
In April 2015, the PHMSA issued two separate Notices of Probable Violation (“NOPV”) related to Sunoco Logistics’ West Texas Gulf pipeline in connection
with repairs being carried out on the pipeline. The NOPVs propose penalties in excess of $0.1 million, and Sunoco Logistics is currently in discussions with
PHMSA to resolve these matters. The timing or outcome of these matters cannot be reasonably determined at this time, however, Sunoco Logistics does not
expect there to be a material impact to its results of operations, cash flows, or financial position.
Additionally, we have received notices of violations and potential fines under various federal, state and local provisions relating to the discharge of materials
into the environment or protection of the environment. While we believe that even if any one or more of the environmental proceedings listed above were
decided against us, it would not be material to our financial position, results of operations or cash flows, we are required to report environmental proceedings
if we reasonably believe that such proceedings will result in monetary sanctions in excess of $0.1 million.
One of the directors of our general partner, James R. (Rick) Perry, the former Governor of Texas, has been named the subject of a pending criminal proceeding
arising from a political dispute between the Governor and the political leadership of the Public Integrity Unit of the Travis County (Texas) District Attorney’s
Office. On August 15, 2014, the Travis County District Attorney’s Office caused a county grand jury to return an indictment against Governor Perry for
“abuse of official capacity” and “coercion of public servant” in retaliation for constitutional protected statements Governor Perry made in his capacity as
Governor of the State of Texas that he would veto funding for the Travis County Public Integrity Unit if District Attorney Rosemary Lehmberg did not resign
after pleading guilty to a charge of driving while intoxicated. Governor Perry pled “not guilty” to those charges and, as of February 2016, all of the charges
have been dismissed.
For a description of legal proceedings, see Note 11 to our consolidated financial statements.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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