Mr. Jerry Milhorn

Vice President of Operations

Kinder Morgan Energy Partners, L.P.

500 Dallas Street, Suite 1000

Houston, Texas 77002-7002

Re: CPF No. 5-2004-5028

Dear Mr. Milhorn:

            Enclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the above-referenced case. It makes a finding of violation and assesses a civil penalty. I acknowledge receipt of and accept your wire transfer submitted February 2, 2005 for $25,000 as payment in full of the civil penalty assessed in the Final Order. This case is now closed. Your receipt of the Final Order constitutes service of that document under 49 C.F.R. § 190.5.

                                                                        Sincerely,

                                                                        James Reynolds

                                                                        Pipeline Compliance Registry

                                                                        Office of Pipeline Safety

Enclosure

cc:       Chris Hoidal, Region Director

            Western Region, OPS

CERTIFIED MAIL - RETURN RECEIPT REQUESTED

DEPARTMENT OF TRANSPORTATION

PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION

OFFICE OF PIPELINE SAFETY

WASHINGTON, DC 20590

______________________________

In the Matter of                                   )

)

Kinder Morgan Energy Partners, L.P.)                                   CPF No. 5-2004-5028

)

Respondent.                                        )

______________________________)

FINAL ORDER

On December 29, 2004, in accordance with 49 C.F.R. § 190.207, the Director, Western Region, Office of Pipeline Safety (OPS), issued to Respondent a Notice of Probable Violation and Proposed Civil Penalty (Notice). The Notice proposed finding that Respondent had committed a violation of 49 C.F.R. Part 195 and proposed assessing a civil penalty of $25,000 for the alleged violation. Respondent responded to the Notice by letter dated February 2, 2005. Respondent did not contest the allegation of violation and provided information concerning the corrective action it has taken. Respondent submitted a wire transfer in the amount of the proposed civil penalty ($25,000), waiving further right to respond, and authorizing entry of this Final Order.

Pursuant to § 190.209(a)(1) and 49 U.S.C. § 60122, I find that Respondent violated the following section of 49 C.F.R. Part 195, as more fully described in the Notice:

49 C.F.R. § 195.422(a) - failing to use an isolation device approved for the type of hot work being performed, resulting in the failure of an air bag and injury to an employee.

This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. I assess Respondent a civil penalty of $25,000, already paid by Respondent.

____________________________                                                    ______________________

Stacey Gerard                                                                                                 Date Issued

Associate Administrator

    for Pipeline Safety