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To preserve the environment in the areas we work in, Crosstex has a comprehensive Environmental, Health and Safety Policy.

Internal Environmental Procedures and Practices
Our company conducts all our business operations with respect for the environments. Internally, our company implements many health, safety, and environmental work procedures and practices. These procedures emphasize individual as well as corporate responsibility for environmental compliance.

Our facilities and equipment meet environmental standards consistent with available and applicable technology. Industrial hygiene, personal protection, environmental and medical monitoring programs are in place to control harmful and toxic agents and conditions affecting employee health and welfare and the environment. We also use audit, analysis, monitoring and review programs to detect, eliminate or control — in advance — the sources of personal injury, property damage, and harmful environmental releases in our operations. Crosstex also maintains loss control, accident, spill and release reporting procedures to provide a means to analyze past experience and prevent future occurrence.

External Environmental Procedures and Practices
In addition to internal organization programs, we work hand-in-hand with federal and state government organizations to ensure regulatory compliance with environmental and health protection statutes. We maintain compliance programs that meet or exceed corresponding regulatory requirements and achieve leadership in accident prevention, health protection and environmental management. Our company also cooperates with federal, state and local governments in addressing environmental issues and developing cost-effective, scientifically based solutions to environmental problems.

To fulfill our external environmental procedures, employee participation programs are in place to provide effective and meaningful methods for employees to participate in the audits, educational opportunities and the development of programs designed to protect their health, safety and environment. Management also is accountable to provide for the safety of their employees and contractors, as well as supporting the company’s safety and environmental programs.

Because so much is riding on the safety of Crosstex Energy’s pipeline system, extensive measures are taken to ensure the integrity of pipelines operated by Crosstex. The Integrity program actually starts before the pipeline is ever built and continues throughout its life.

The Crosstex Energy Integrity Management Program addresses the following:

• Designation of risk-based analysis and/or prescriptive analysis, system by system or segment by segment within a system(s).
• Development and maintenance of a risk-based schedule for pipeline testing.
• Continual data assessment and evaluations.
• Maximization of public safety, including the prevention/minimization of leaks and spills, and prevent property and environmental damage.

Through the program, Crosstex comprehensively evaluates the entire range of probable threats of each pipeline segment by analyzing all available information about the pipeline segment and the consequence of a failure. This comprehensive evaluation includes analyzing information gathered from the following:

• Identification, integration and evaluation of High Consequence Areas
• Investigate and mitigate the potential for damage due to excavation and 3rd part activity
• Integrate the results of other inspections, tests, surveillance and patrols required by various pipeline safety regulations
• Perform corrosion control monitoring and cathodic protection surveys
• Crosstex takes prompt action to address an integrity issue raised by assessments and analyses.

Direct Assessment Program

Additionally, Crosstex will utilize, when appropriate, direct assessment of the condition of the line pipe to assess the integrity of the pipe coating and steel anomalies of the line pipe line, as well as confirmatory direct assessment.

Direct assessment is a structured process that utilizes the integration and evaluation of data from many sources and selected field-testing for modeling and analysis to reduce the impact of corrosion threats to a pipeline. Direct assessment may be used in lieu of, or in association with in-line inspection or pressure testing. The methodology includes an external corrosion program, internal corrosion modeling, stress corrosion cracking assessment, as well as integration of historical construction, operating, and maintenance information, combined to provide a detailed assessment of the pipeline. Field pipe excavation inspections are performed to validate assessment and modeling results for accurate remediation, and improved maintenance procedures.

Q: How does Crosstex Energy prepare its pipelines for installation?

A: Only high-strength steel pipe that meets or exceeds standards established by the natural gas industry and the federal and state governments are employed in high pressure service. The steel pipe is coated with materials suitable to soil compositions to prevent external corrosion of the line. After construction and prior to operation, the pipe weld joints are x-rayed, as well as hydrostatically pressure tested in such a manner to comply with industries construction standards.

Q: How often is Crosstex Energy's system monitored?

A: Most of our pipeline systems are monitored 24 hours a day, seven days a week, from our gas control centers via our Supervisor Control And Data Acquisition (SCADA) system. These centers continuously monitor flow, pressure and other data associated with our monitored pipeline system(s).

Crosstex gas control centers are also key locations for our emergency response program. If a significant pressure drop occurs anywhere along a monitored pipeline, our control centers are alerted immediately and either automatic shutdown devices are tripped or valves are closed to isolate the affected section of pipe.

Q: What is a High Consequence Area (HCA)?

A: HCA's are defined by DOT regulations 49 CFR 192.903 and 195 Appendix C. Crosstex has determined the locations of HCA's along the routes of its transmission pipeline systems based on the DOT requirements. Generally, HCA's are highly-populated areas and areas identified to be sensitive to a potential pipeline failure.

Crosstex can be contacted for detailed information on a specific location of HCAs in a community or for integrity-related activities in a specific HCA. Specific HCA Questions should be directed to the contact listed at the end of this document.

Q: How Does Crosstex Energy Integrity test its pipelines?

A: Crosstex assesses the integrity of the pipelines by utilizing any of the following methods:

• Internal inspection tools (Smart Pigs) capable of detecting pipeline corrosion and deformation
• Pressure test
• Direct assessment
• Confirmatory direct assessment
• Other technology that Crosstex demonstrates can provide an equivalent understanding of the condition of the line pipe.
• In-line Inspection Tools Utilized at Crosstex
• Magnetic Flux Leakage (MFL) tool
• Transverse Flux tool
• Caliper / Geometric tool
• Other tools which technology proves acceptable to the Rule
• Pressure Testing
  

Q: What does Crosstex do in response to a Pipeline emergency?

A: We first determine necessary steps to protect life and property, and we call 911. Our immediate next step is to isolate the affected section of pipe, shut off the flow of gas, and allow the remaining gas, which is lighter than air, to dissipate. Concurrently, we assemble a team of experts from various areas of our company to address the emergency. Our main concern is the safety of the community and the response team. Once all safety issues are addressed, we begin assessing any property damage resulting from the incident. Further, we preserve the integrity of the site and work closely with local, state, and federal agencies to determine the cause of the incident and appropriate remedial measures.

Q: What does Crosstex's emergency response plans cover?

A: The plans outline the steps to be taken in the event of a fire, rupture, major leak, or serious incident occurring at or near one of our facilities. The plans are developed to prepare our employees and local emergency response personnel to handle emergency situations involving our facilities and to protect the public. The plans outline the roles and responsibilities of company, contractor, and local response personnel. Communication and cooperation with local organizations are key components of the emergency response plans, and the feedback from these interactions is used in the development and revision of these plans.

Q: How does Crosstex's safety record compare to others in the natural gas pipeline business?

A: Crosstex tracks each incident and has historically performed better than the industry average, i.e. our incident rate is substantially lower than our peers.