Kinder Morgan Inc. said it has filed a “motion to dismiss” inColorado Federal District Court and will defend itself against acomplaint filed Dec. 20 by the Justice Department on behalf of theEnvironmental Protection Agency. The complaint alleges KMIsubsidiary Natural Gas Pipeline Company of America (NGPL) failed toobtain all necessary air quality permits when constructing theAkron Compressor Station in Weld County, CO, more than 20 yearsago. It requests penalties up to the statutory maximums of $25,000per day of violation prior to January 30, 1997 and $27,500 for eachday of violation after January 31, 1997.

NGPL denies that it failed to obtain all the necessary permitsrequired prior to placing the facility in service. “Prior tobeginning construction, we had discussions with the state andobtained all of the permits that we believed were required to buildthe Akron facility,” said KMI CEO Richard D. Kinder. “It’simperative to note that no entity has ever alleged that emissionsfrom this facility have ever violated any air quality standards orhave negatively impacted human health or the environment in anyway.”

“Although we cannot predict the outcome of this case, we do notbelieve this litigation will have a material adverse effect on ourbusiness, cash flows, financial position or results of operations,”Kinder said. “Furthermore, we believe we have accrued sufficientreserves to cover this matter.”

The Akron station was built and operated by NGPL until August of1996 when it was sold to High Plains Gathering System. High Plainssold one of the compressor engines to Colorado Interstate GasCompany in October of 1997. None of these assets were ever owned byKinder Morgan Energy Partners, L.P. and KMP is not a party to thislegal proceeding.

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