Sunoco 2012 Annual Report Download - page 36

In August 2009, the Pipeline Hazardous Material Safety Administration (“PHMSA”) proposed penalties
totaling $0.2 million based on alleged violations of various safety regulations relating to the November 2008
products release by Sunoco Pipeline L.P. in Murrysville, Pennsylvania. In December 2011, the assessed fine was
paid. The Partnership completed the mandated corrective actions and received notice from PHMSA in June 2012
that no further action is required.
In 2009, the Environmental Protection Agency (“EPA”) proposed penalties based on alleged violations of
the Clean Water Act associated with an October 2008 release from the Mid-Valley Pipeline. The EPA and the
Partnership agreed upon a settlement of $0.3 million, which the Partnership paid in the first quarter 2012.
The Partnership’s Sunoco Pipeline L.P. subsidiary operates the West Texas Gulf Pipeline on behalf of West
Texas Gulf Pipe Line Company and its shareholders pursuant to an Operating Agreement. Sunoco Pipeline L.P.
also has a 60.3 percent ownership interest in the company. In March 2010, Sunoco Pipeline L.P. received a
Notice of Probable Violation, Proposed Civil Penalty and proposed Compliance Order from PHMSA with
proposed civil penalties in connection with a crude oil release that occurred at the Colorado City, Texas station
on the West Texas Gulf Pipeline in June 2009. PHMSA issued a final order in August 2012 finding the
Partnership in violation of all items identified in the original notice. The Partnership paid $0.4 million during the
third quarter 2012 but has requested a petition for reconsideration on certain of the violations. The Partnership is
awaiting a response from PHMSA.
In January 2012, the Partnership experienced a release on its refined products pipeline in Wellington, Ohio.
In connection with this release, PHMSA issued a Corrective Action Order under which the Partnership is
obligated to follow specific requirements in the investigation of the release and the repair and reactivation of the
pipeline. The Partnership also entered into an Order on Consent with the EPA regarding the environmental
remediation of the release site. The Partnership has not received any proposed penalties associated with this
release and continues to cooperate with both PHMSA and the EPA to complete the investigation of the incident
and repair of the pipeline.
In 2012, the EPA issued a proposed consent agreement related to releases that occurred at the Partnership’s
pump station/tank farm in Barbers Hill, Texas and pump station/tank farm located in Cromwell, Oklahoma in
2010 and 2011, respectively. These matters were referred to the U.S. Department of Justice (“DOJ”) by the EPA.
In November 2012, the Partnership received an initial assessment of $1.4 million associated with these releases.
The Partnership is in discussions with the EPA and DOJ on this matter and hopes to resolve the issue during
2013.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SECURITYHOLDER
MATTERS AND PURCHASES OF EQUITY SECURITIES
Our common units are listed on the New York Stock Exchange under the symbol “SXL” beginning on
February 5, 2002. At the close of business on February 28, 2013, there were 89 holders of record of our common
units. These holders of record included the general partner with 33.5 million common units registered in its name,
and Cede & Co., a clearing house for stock transactions, with the majority of the remaining 70.3 million common
units registered to it.
On October 25, 2011, our Board of Directors declared a three-for-one split of our common and Class A
units. The unit split resulted in the issuance of two additional common or Class A units for every one unit owned
as of the close of business on November 18, 2011, which is the record date. The unit split was effective
December 2, 2011. All unit and per unit information included in this report are presented on a post-split basis.
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