FEDERAL ENERGY REGULATORY COMMISSION FIELD INSPECTION REPORT

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FIELD INSPECTION REPORT Date September 25 and 26, 2016 Project Kern River Gas Transmission Company (Kern River) Apex Expansion Project Utah, Millard, Beaver, Morgan, Davis, and Salt Lake Counties, Utah; Uinta County, Wyoming; Clark County, Nevada Authority: Section 7(c) Personnel FERC Project Manager: Company Staff: David Hanobic Callee Butcher, Kern River Heather Evans, Kern River Inspection Summary 0 Problem Area(s) 0 Noncompliance(s) No No Follow-Up Letter Required Refer to Enforcement Introduction On September 25 and 26, 2016, David Hanobic, of the Commission staff, performed a restoration inspection of the Apex Expansion Project. The project consists of approximately 28 miles of 36-inch-diameter pipeline loop in Morgan, Davis, and Salt Lake Counties, Utah; modification to four existing compressor stations (Coyote Creek Compressor Station in Uinta County, Wyoming; Elberta Compressor Station in Utah County, Utah; Dry Lake Compressor Station in Clark County, Nevada; and Fillmore Compressor Station in Millard County, Utah); and construction of the new Milford Compressor Station in Beaver County, Utah. The project construction period was September 2010 to October 2011. The in-service date was October 1, 2011. The inspection consisted of a helicopter overflight of the pipeline right-of-way and on-the-ground inspections. The purpose of the inspection was to determine Kern River s compliance with the environmental conditions of the Commission s Order for the subject project and to inspect the restoration conditions of the pipeline right-of-way. The findings of the inspection were that no instances of problem areas or noncompliance were observed. The photographic record shows various photos taken during the inspection with a brief description of what was observed. A site map is also attached.

Inspection The weather conditions were sunny with temperatures in the mid 50s o F on September 25, but varied greatly on September 26 when the inspection covered different elevations. According to www.wunderground.com, the month of September rainfall amounted to 0.89 inch in Salt Lake City, Utah. This measurement is likely not accurate over most of the project, as more rain tends to fall within the mountainous areas east of Salt Lake City. There was fresh snowpack in the higher elevations from a storm the weekend before the inspection. The inspection occurred on foot on September 25 and consisted of the area near Sessions Road. On September 26, the inspection occurred by helicopter and started at milepost 0.0 and followed the rightof-way back to Bountiful, Utah to the residential areas at the base of the Wasatch Range (approximately milepost 25). The right-of-way appears stable and the majority of the right-of-way was revegetated. All slope breakers appear fully functional and no major areas of erosion were noted. Grazing by livestock continues to be a factor that makes restoration much more difficult in some areas, although it appears to be less of an issue compared to the inspections in 2013 and 2014. Kern River has continued to work with landowners, although most are not agreeable to fencing off the right-ofway to reduce grazing pressure while vegetation is established. Photo 1 shows an area west of Sessions Road. The right-of-way here is stable and restored. Photo 2 shows a slope breaker near Sessions Road functioning by diverting snowmelt off of the right-of-way. No erosion was noted. Photo 3 shows the areas of concern that were noted in 2013 and 2014 because of heavy sheep grazing. Although some areas still lack vegetation due to the severe compaction caused by extremely heavy grazing, the right-of-way was stable. When up close in the areas that appear bare, small vegetation can be seen in the compacted areas. Kern River has seeded this area and revegetation is proceeding satisfactorily. Kern River is also working with and the U.S. Forest Service (USFS) to replace fences as needed. Photo 9 shows the previously identified problem area near Woods Creek, which was also caused by grazing. The areas still show pressure from grazing, but vegetation has increased and the right-of-way was stable with no erosion noted. Photos 6-8 and 10-13 show the right-of-way condition over various portions of the right-of-way from the helicopter overflight. As mentioned above, revegetation is considered to be successful for the majority of the right-of-way. Only a few areas of minimal vegetation were noted. Natural recruitment of species that are adjacent to the right-of-way was also noted. Numerous large cracks in the soil associated with sidehill construction noted in the September 2013 inspection have been addressed by Kern River and were restored. None remained visible during the 2016 overflight. Conclusions and Recommendations A follow-up letter is not required at this time because no instances of problem areas or noncompliance were observed. Kern River was asked to provide photos after the next growing season of the area near Sessions Road, to show if vegetation continues to increase in these areas. No additional restoration inspections are recommended. With the exception of the small area near Sessions Road, we consider restoration to be complete. 2

SITE MAP

Photo No.: 1 Date: September 25, 2016 Approx. MP: 14.5 Direction: West Comments: Right-of-way is stable and revegetation is considered successful in this area. The white patches through this area are mostly from recent snowfall. Photo No.: 2 Date: September 25, 2016 Approx. MP: 14.5 Direction: East Comments: The waterbar can be seen functioning by diverting snowmelt off of the right-of-way. No erosion behind the waterbar was noted and revegetation is considered successful in this area.

Photo No.: 3 Date: September 25, 2016 Approx. MP: 14.5 Direction: Northeast Comments: Area near Sessions road (USFS owned) where the right-ofway was grazed heavily which resulted in heavy compaction in 2013. This area was reseeded in 2015. Although some bare areas were noted in this inspection, the vegetation has progressed substantially since September 2014. The photo from September 2014 (below) highlights the progress (red arrows show location of the same trees for reference). It does appear that some areas are still struggling to reestablish vegetation. These areas are not eroding or resulting in an unstable right-of-way. As long as grazing continues to avoid this area, revegetation should continue. Revegetation is proceeding satisfactorily in this location.

Photo No.: 4 Approx. MP: 0.5 Direction: West Comments: Right-of-way stable. Vegetation is consistent with off right-of-way vegetation. Restoration is successful.

Photo No.: 5 Approx. MP: 3.0 Direction: Northwest Comments: Right-of-way stable. Vegetation is consistent with off right-of-way vegetation. Restoration is successful.

Photo No.: 6 Approx. MP: 3.75 Direction: NA Comments: Right-of-way is stable. Vegetation is consistent with off right-of-way vegetation. Wildlife and grazing trails are visible on and off of the right-of-way. Restoration is successful.

Photo No.: 7 Approx. MP: 4.0 Direction: Northwest Comments: Right-of-way is stable. Vegetation is consistent with off right-of-way (non-forested) vegetation. Restoration is successful.

Photo No.: 8 Approx. MP: 7.5 Direction: West Comments: Right-of-way is stable. Vegetation is consistent with off right-of-way vegetation. Restoration is successful.

Photo No.: 9 Approx. MP: 7.8 Direction: NA Comments: Woods Creek. In our 2013 and 2014 inspections, vegetation was sparse and cattle grazing the area caused revegetation efforts to be unsuccessful. Soils were very powdery and loose. The landowner would not allow exclusion of cattle. In 2016, the right-of-way was vegetated, although sparse in a few areas and still under grazing pressure. The stream at the valley bottom draws livestock to the area. Vegetation density is increasing from 2014, and no erosion was noted. Restoration is proceeding satisfactorily in this area. Red arrows show the same shrubs from 2014 to 2016 for reference.

Photo No.: 10 Approx. MP: 12.5 Direction: NA Comments: Right-of-way is stable. Vegetation is consistent with off right-of-way (non-forested) vegetation. Restoration is successful.

Photo No.: 11 Approx. MP: 15.5 Direction: NA Comments: Right-of-way is stable. Slope breakers were functioning with no erosion noted. Vegetation is consistent with off right-of-way (non-forested) vegetation. Restoration is successful.

Photo No.: 12 Approx. MP: 20 Direction: Southewest Comments: Right-of-way is stable. Vegetation is consistent with off right-of-way (non-forested) vegetation. Restoration is successful.

Photo No.: 13 Approx. MP: 23 Direction: Southwest Comments: Right-of-way is stable. Vegetation is consistent with off right-of-way (non-forested) vegetation. Good growth of shrubbery was noted on right-of-way. Restoration is successful.