COULD GET THAT MORNING. >> THANK YOU VERY MUCH FOR YOUR TESTIMONY. MY TIME HAS EXPIRED. >> THANK YOU. SENATOR HOLLY. >> THANK YOU. I THINK YOU MENTIONED IN YOUR WRITTEN TESTIMONY, WHAT PERCENTAGE APPROXIMATELY OF ALL FUEL ON THE EAST COAST OF THE UNITED STATES IS TRANSPORTED BY YOUR COMPANY'S PIPELINE? >> APPROXIMATELY 45%. >> HOW MANY GALLONS ON A DAILY BASIS? >> NORMALLY WE WILL MOVE APPROXIMATELY 100 MILLION GALLONS PER DAY. >> IS IT FAIR TO SAY TENS OF MILLIONS OF AMERICANS DON'T REALLY HAVE A CHOICE BUT TO RELY ON YOUR PIPELINE? YOU HAVE ENORMOUS MARKET POWER, IS THAT A FAIR STATEMENT? >> OVER TIME WE HAVE EVOLVED AS A BIG PLAYER AND IT IS BECAUSE OF OUR RELIABILITY RECORD. QUITE FRANKLY, WE ARE THE CHEAPEST COST TO THOSE CUSTOMERS. >> I THINK THE AMOUNT OF FUEL EXCEEDS THE FUEL CONSUMPTION OF GERMANY. IF I'M NOT MISTAKEN CLOSURE THE SILICATE IT NEARLY OR LED TO NEARLY 16,000 GAS STATIONS WITHOUT FUEL ACROSS THE COUNTRY. IT IS HUGE AND CONSUMERS REALLY RELY ON YOU. I AM CURIOUS, GIVEN YOUR MARKET POWER AND THE RELIANCE OF CONSUMERS, GIVEN THE SHEER NUMBER OF CONSUMERS YOU SERVE WHY DID YOU TAKE UP THE OFFER TO DO A COMPREHENSIVE CYBER SECURITY REVIEW OF THE PIPELINE? >> THANK YOU FOR ASKING. WE WERE INDEED IN CONTACT. OBVIOUSLY COVID GOT IN THE WAY DURING THE EARLY DAYS. WE WERE GETTING READY TO MOVE INTO A NEW FACILITY AT THE END OF THE YEAR. I THINK THE CONVERSATION WAS WE WANT TO, WHAT WE WILL SCHEDULED THAT LATER ON. WE DO HAVE A SCHEDULE FOR THE END OF JULY. >> A COVID ISSUE OR A MOVING ISSUE? I'M LOOKING AT THE WASHINGTON POST ARTICLE HERE THAT REPORTS THE TSA HAD TRIED TO SCHEDULE A COLONIAL CANNOT GET IT DONE. DO YOU REGRET NOT DOING THAT? >> ANYTHING THAT YOU COULD DO IS ALWAYS HELPFUL. WE HAVE A GOOD WORKING RELATIONSHIP WITH TSA. I WAS A LITTLE SURPRISED ABOUT THE REFUSAL. NO ONE UNDERSTOOD WHY THAT WORD WAS REFUSED. AND ARE YOU SAYING YOU THINK A REVIEW WOULD'VE BEEN REDUNDANT AND NOT COMPLETELY HELPFUL? >> I THINK IN THIS CASE IT PROBABLY WOULD NOT HAVE RESULTED IN FINDING THAT LEGACY VPN. THEY DO NOT ACTUALLY GO INTO THE SYSTEM. I'M NOT SAYING IT WOULD NOT BE VALUABLE. I THINK EACH ONE OF THESE ARE SLIGHTLY DIFFERENT. THAT ONE LITTLE PIECE THAT MAKE THE DIFFERENCE. NEVER ANY ISSUE WITH US ACTUALLY GETTING TO THE POINT OF DOING THAT. >> WHO OWNS COLONIAL PIPELINE? >> SEVERAL ENTITIES. >> INCLUDING? >> A DIVISION OF SHELL, MIDSTREAM, KKR, ISM, AND KOCH INDUSTRIES. >> IT HAS BEEN REPORTED COLONIAL HAS DISTRIBUTED ALMOST ALL OF YOUR PROFIT IN THE FORM OF DIVIDENDS TO INVESTORS. WHAT DO YOU INVEST IN CYBER SECURITY? >> OVER $200 IN THE LAST FIVE YEARS. >> HOW ABOUT AN ANNUAL BASIS? NEW OPERATING NOT UNLIKE A PUBLIC UTILITY. YOU SERVE 45%-50% OF THE COSMOS ON THE EAST COAST, THE ATTACK ON YOU LED TO 16,000 GAS STATIONS BEING SHUT DOWN. GIVEN THE RELIANCE OF YOUR COMPANY WHAT ARE YOU DOING? >> OUR DIVIDEND POLICY IS NOT MUCH DIFFERENT THAN ANY OTHER DIVIDEND COMPANY. OUR OWNERS HAVE NEVER DENIED US ANY OPPORTUNITY TO SPEND WHAT WE NEED TO SPEND TO KEEP THE PIPELINE SAFE AND SECURE. >> WHICH IS ABOUT WHAT? >> $1.5 BILLION IN SYSTEM INTEGRITY EVERY FIVE YEARS. >> WE WILL GIVE YOU THIS FOR THE RECORD. YOU TALK ABOUT FEDERAL REGULATIONS IN SHOULD CONSIDER DESIGNATING A POINT OF CONCEPT. WHAT RULES DO YOU THINK CONGRESS SHOULD DO ABOUT YOU AND COMPANIES LIKE IT GOING FORWARD? >> I THINK CONGRESS SHOULD REQUIRE SAFETY AND SECURITY. I THINK WE HAVE DEMONSTRATED THAT >> I UNDERSTAND THE ATTACK WAS ONLY A BIT OF FIGHTING COVID-19 NETWORK. >> THAT'S CORRECT. >> TO YOUR KNOWLEDGE THE OPERATION NETWORK MIGHT NOT OF BEEN AFFECTED? >> IT THERE WAS A 1% SING A SUBTLETY SYSTEM IS COMPROMISED IT WAS WORTH SHUTTING THE PIPELINE SYSTEM DOWN. BASED UPON THE INVESTIGATION OF THIS POINT THAT WILL BE A CORRECT SECTION. AND THE PIPELINE IS 70 YEARS OLD. THERE WAS A TIME THAT YOU OPERATED WITHOUT TODAY'S COMPUTER SYSTEMS. DO YOU HAVE THE CAPABILITY TO MANUALLY OPERATE THE PIPELINE IN THE MIDDLE OF AN IT ATTACK? IF YOU DON'T HAVE THE ABILITY, SHOULD YOU? >> THAT IS A GREAT QUESTION. THE DISCUSSION TOOK PLACE ABOUT THE ABILITY AND THE RESPONSE WAS THE BIGGEST SOCIAL ETC. TO GET THAT UP ON OUR FEET THAT OPERATE MANUALLY. THERE IS NO QUESTION THAT WE WILL LOOK AT THE CAPABILITY IF YOU LOOK AT AGING WORKFORCE A LOT OF THOSE PEOPLE THAT DID OPERATE MANUALLY OR RETIRING OR GONE. FORTUNATELY WE STILL HAVE THE LAST BIT
