STATE OF CALIFORNIA, PETE WILSON, Governor

PUBLIC UTILITES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

March 23, 1998

Dean Shauers, Project Manager

Pacific Pipeline System, Inc.

12201 E. Arapahoe Road, C10

Englewood, CO 80112

RE: Amended Variance Request #57 - Allow for construction seven days a week between 7 a.m. and 7 p.m. at the Gorman Slide directional drill sites and 24-hour construction during the pull back operation, Los Angeles County (Segment 1).

Dear Mr. Shauers:

We have reviewed the above-referenced Variance Request and approve your request, based on the following factors:

• The Gorman Slide directional drill sites (entry and exit) are located within rural Los Angeles County, south of Gorman, approximately 50 to 100 feet west of Interstate 5. These directional drill sites were approved by the CPUC on January 14, 1998 (Clearance #23).

• The pull back operation is expected to be completed within less than 48 hours, if no problems arise, and is currently scheduled to commence on April 3, 1998.

• Under amended Variance Request #57, PPSI is also requesting that if the directional drill gets stuck, that a continuous 24-hour operation be allowed for the completion of the drill. The directional drill at the Gorman Slide has been underway since March 11 without incident (e.g., drill has not gotten stuck).

• No residences or businesses are located within 500 feet of either directional drill site. PPSI has filed for and received an exemption from the Los Angeles County Code, Building Construction Noise (Title 12, Chapter 12.12) thereby allowing Sunday and 24-hour construction as stipulated in amended Variance Request #57.

• The following measures shall be implemented:

- All applicable mitigation measures for the project shall be implemented at the subject locations.

- All noise complaints received shall be filed immediately with the County of Los Angeles and CPUC Lead Environmental Monitor for consideration. Failure to file any noise complaints shall result in the immediate cessation of construction as granted under this variance approval.

- During 24-hour operations, lighting shall be positioned at the directional drill sites in such a manner as to not project light onto Interstate 5.

- As proposed, PPSI shall provide the CPUC Lead Environmental Monitor with 48 hour advance notice of pull back operations.

- Implementation of this variance in accordance with the provisions noted above shall be verified on a random basis by a CPUC/ANF Environmental Monitor.

Sincerely,

Andrew Barnsdale

Project Manager

cc: R. Borden, ANF

H. Rastegar, Aspen

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