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Bridgewater Place Post Office Box 352 Grand Rapids, Michigan 49501-0352

Telephone 616 / 336-6000 Fax 616 / 336-7000 www.varnumlaw.com

Daniel C. Molhoek James A. Mitchell Dirk Hoffius William A. Dornbos Thomas J. Barnes Larry J. Titley Fredric A. Sytsma John W. Allen Jack D. Sage Paul L. B. McKenney John W. Pestle Nyal D. Deems Richard A. Hooker Randall W. Kraker Peter A. Smit Robert D. Mollhagen Marilyn A. Lankfer Thomas L. Lockhart Bruce Goodman Joseph J. Vogan Thomas J. Kenny Eric J. Schneidewind Lawrence J. Murphy Teresa S. Decker Lawrence P. Burns Thomas H. Bergh Matthew D. Zimmerman William E. Rohn

John Patrick White Jeffrey D. Smith Jonathan W. Anderson Susan M. Wyngaarden Kaplin S. Jones Stephen P. Afendoulis David E. Khorey Michael G. Wooldridge Perrin Rynders Mark S. Allard Timothy E. Eagle Michael S. McElwee Peter J. Livingston David E. Preston Jeffrey W. Beswick Elizabeth Joy Fossel Joan Schleef Scott A. Huizenga Jeffrey J. Fraser Richard D. Fries James R. Stadler Richard R. Symons Eric M. Nemeth Ronald G. DeWaard James M. Eardley Eric J. Guerin Steven J. Morren Thomas G. Kyros

Alfred L. Schubkegel, Jr. Pamela J. Tyler Jon M. Bylsma Joseph B. Levan Harvey Koning Anthony R. Comden Beverly Holaday Pamela Emenheiser G. Mark McAleenan, Jr. Richard A. Samdal Scott D. Alfree Annette D. Nickel Jennifer J. Stocker Stephanie R. Setterington Bryan R. Walters Dean F. Reisner Kimberly A. Clarke Kevin C. O'Malley Mark E. Hills Peter G. Roth Mary Kay Shaver Jude W. Pereira Kimberly Baber Adam J. Brody Steve S. Kluting Christopher P. Baker Matthew B. Eugster Charyn K. Hain

Elizabeth Wells Skaggs Melissa B. Papke Timothy J. Lundgren Aaron M. Phelps Brett A. Rendeiro Steven T. Buquicchio Nancy L. Farnam Christopher J. Caldwell Eric W. Bredemeier Scott J. Hill Barbra Evans Homier Marla Schwaller Carew Brion B. Doyle Michael P. Kling Seth W. Ashby Gary J. Mouw April H. Sawhill Jeffrey T. Gray Bradley S. Defoe Nina Thekdi Ray H. Littleton II Kimberley P. H. Mitchell Toni L. Newell Peter A. Schmidt Kathrin E. Richards Pennie S. Johnson Emily J. Broderick Kristiana M. Coutu

Michael J. Romaya Linsey A. Aten James D. Gallagher Timothy P. Monsma Stephen F. MacGuidwin Laura E. Radle Counsel Terrance R. Bacon Anthony W. Devine Marjorie B. Gell Paul J. Greenwald Randall J. Groendyk Bruce R. Grubb Richard C. Lague Kevin W. Manning Michael J. Mulcahy Deborah I. Ondersma Richard D. Rathburn Dale R. Rietberg Christopher J. Salata Jeffrey L. Schad Dennis B. Schultz Scott R. Sikkenga Donald Snide Bruce H. Vanderlaan

Of Counsel Eugene Alkema Peter Armstrong Bruce A. Barnhart John C. Carlyle James N. DeBoer, Jr. Jon F. DeWitt Donald L. Johnson Robert D. Kullgren William J. Lawrence III H. Edward Paul David A. Rhem Hilary F. Snell Kent J. Vana Carl E. Ver Beek

August 24, 2010

Ms. Mary Jo Kunkle Executive Secretary Michigan Public Service Commission 6545 Mercantile Way P.O. Box 30221 Lansing, MI 48909

Re: In the matter, on the Commission's own motion, to order Continental Resources, Inc., to show cause why it should not be found in violation of 1929 PA 9, MCL 483.101 et seq. or 1965 PA 165, MCL 483.151 et seq. for construction of a pipeline in Hillsdale and Jackson Counties without Commission authorization or approval, MPSC Case No. U-16388

Dear Ms. Kunkle:

Enclosed for electronic filing on behalf of Continental Resources, Inc., is the Direct Testimony and Exhibits of Tim Thon and Proof of Service in the above-captioned matter. If you have any questions, please call the undersigned.

Very truly yours,

VARNUM

Jack D. Sage JDS/daf Enc. cc: Hon. Mark E. Cummins/w. enc. All Interested Parties/w. enc.

STATE OF MICHIGAN

BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION

* * * * * In the matter, on the Commission's own motion, ) to order Continental Resources, Inc., to show cause ) why it should not be found in violation of ) 1929 PA 9, MCL 483.101 et seq. or 1965 PA 165, ) Case No. U-16388 MCL 483.151 et seq. for construction of a ) pipeline in Hillsdale and Jackson Counties without ) Commission authorization or approval. ) )

DIRECT TESTIMONY

AND EXHIBITS

OF TIM THON

TIM THON 2

Q. Please state your name and business address for the record. 1

A. My name is Tim Thon. My business address is 7302 Northland Drive, Stanwood, MI 2

49346. 3

Q. Where are you currently employed and what is your position? 4

A. I am employed as a pipeline construction inspector with JRJ Energy Services, LLC 5

("JRJ"). 6

Q. What type of services does JRJ provide? 7

A. JRJ provides a full range of professional and technical contract support services and 8

personnel, serving the needs of production, transmission, storage and distribution 9

companies nationwide. JRJ's clients include Consumers Energy, DTE Energy, and Plains 10

All American Pipeline. 11

Q. Would you please summarize your work experience and training. 12

A. I have worked in the oil and gas industry for over forty-five (45) years. I have been 13

employed by JRJ for the past seven (7) years. I am certified in over thirty-six (36) 14

operator specialties through Midwest Energy Association online, who administers these 15

federally mandated tests. I have also received training in welding, coating and holiday 16

detection operator qualifications, as well as, rigging and confined space entry. At JRJ, I 17

have been assigned to a variety of projects throughout the country. A majority of my 18

work involves inspecting pipelines, including inspection for corrosion and inspection of 19

welds. As an inspector, I have also provided assistance in determining the safest and 20

most cost efficient locations to dig pipelines. In addition to inspecting pipelines, I have 21

worked as an excavator and a backfiller on some projects. I also have experience as a 22

materials person, responsible for receiving, inventorying, and issuing to the contractor all 23

TIM THON 3

materials necessary for a compressor station project. Please see a listing of some of my 1

experience, Exhibit R-_________ (TT-1), for this and other work experience, including 2

descriptions of various projects in which I have been involved. 3

Q. Are you a member of any professional organizations? 4

A. Through JRJ, I am a member of the Midwest Energy Association. 5

Q. Who are you testifying on behalf of in this proceeding? 6

A. Continental Resources, Inc. ("Continental"). 7

Q. What is the purpose of your testimony in this proceeding? 8

A. The purpose of my testimony in this proceeding is to address whether the construction of 9

the Adams Pipeline, was completed in compliance with 1965 PA 165, MCL 483.151 et 10

seq. ("Act 165"), the regulations and rules promulgated thereunder, R 460.20101 et seq. 11

("Michigan Gas Safety Standards"), and 49 CFR Part 192 ("Part 192") which is 12

incorporated therein. 13

Q. Are you familiar with Act 165, the Michigan Gas Safety Standards and Part 192? 14

A. Yes. I am familiar with Act 165, the Michigan Gas Safety Standards and Part 192 as 15

well as the inspection requirements contained and incorporated therein, including but not 16

limited to inspection of plastic pipe joints (49 CFR 192.287) and inspection of materials 17

(49 CFR 192.307). Furthermore, I am qualified under 49 CFR 192.287 to evaluate the 18

acceptability of plastic pipe joints. Please see a copy of the relevant portions of Part 192, 19

Exhibit R-_________ (TT-2). 20

Q. Are you certified in any areas covered by the Michigan Gas Safety Standards and Part 21

192? 22

TIM THON 4

A. Yes, I have been certified in the following areas: Installation of Plastic Pipe; Plastic Pipe 1

– Sidewall Heat Fusion; Plastic Pipe – Electrofusion; Plastic Pipe – Socket Heat Fusion; 2

and Plastic Pipe – Butt Heat Fusion. See copies of my certifications, 3

Exhibit R-_________ (TT-3). 4

Q. How did you come to participate in the construction of the Adams Pipeline? 5

A. JRJ was engaged by Continental to oversee and inspect the construction of the Adams 6

Pipeline and I was assigned to the project. My duties included observing and inspecting 7

the Adams Pipeline during the construction phase and to ensure it was constructed and 8

installed in compliance with the engineering specifications. 9

Q. Were you present during construction of the Adams Pipeline? 10

A. Yes, during the construction of the Adams Pipeline, I was onsite with Continental and 11

conducted daily inspections of the construction and installation of the Adams Pipeline 12

assuring compliance with the construction and engineering specifications, visually 13

examining the plastic pipe joints, and visually inspecting at the site of installation the 14

length of pipe and each other component of the Adams Pipeline. 15

Q. What procedures were used to install the Adams Pipeline? 16

A. The Adams Pipeline was installed by the trenching or plowing-in method, with a 17

minimum cover of thirty-six (36) inches. Prior to installation in the ground, a long 18

section of fused pipe was strung out along the right-of-way adjacent to where the pipe 19

was to be installed. A pulling eye was fused on one end of the pipe which was then 20

chained to the dozier with a ripper. A ripper attached to a dozier continually plowed a 21

trench slightly wider than the diameter of the pipe by breaking up the soil to a depth of 22

several feet. The fused pipe was then immediately laid in the trench via a plowing chute 23

TIM THON 5

that the pipe was fed through before the trench had time to collapse. With a second 1

dozier attached by winch line to the ripper dozier, the pipe was continuously pulled in the 2

trench until all of the pipe was buried. 3

Q. Does the Adams Pipeline meet the Michigan Gas Safety Standards and Part 192 which is 4

incorporated therein? 5

A. Yes, irrespective of whether or not the Adams Pipeline might be subject to the Michigan 6

Gas Safety Standards or Part 192, the construction of the Adams Pipeline, including the 7

plastic pipe joints and each individual component of the Adams Pipeline, was completed 8

in compliance with such. 9

Q. Does this conclude your testimony? 10

A. Yes. 11

TT-1 – Page 1

 Timothy R. Thon  Training Michigan Consolidated Gas Company Welding, Coating and holiday Detection Operator Qualifications Training in rigging and confined space entry Operator Qualifications‐ 36 tests through MEA online.  Experience 2008‐2009  JRJ Energy Services, LLC  Consumers Energy   Pier Modification I was in charge of the civil work and the inspection of corrosion.  I filled out the proper paper work to go along with this job.  2008  McDaniel Technical Services  Consumers Energy Coolidge Direct Assessment and Remediation Project My duties were the excavation, corrosion inspection, coating, and backfilling.  I was in charge of scheduling the trucks for hauling out contaminated dirt, and filling out all of the paperwork involved.  2008  Tulsa Inspection  Consumers Energy Winterfield Storage In charge of inspection for installation of new fiberglass tank and piping.  Holes drilled in the sludge catcher for new fittings, checking on the size and angle of the holes.  This vessel was two and a half inches thick.  The installation of the mechanical piping from the new steel pipe to the fiberglass fittings.  2008  Mark West Liberty Midstream & Resources Fifteen miles of 12” and 5 miles of 6” steel pipe.  My duties were right of way, backfilling, coating (two part epoxy), directional and conventional drilling, and the paperwork for these functions.  2007‐2008  JRJ Energy Services, LLC  TransCanada Chief Inspector on the 2007 Integrity program for TransCanada (Great Lakes Gas Transmission 36” pipelines).  One hundred twenty‐five dig locations from MN to MI.  Prepare daily progress reports.  Assist in the decision on how the dig locations are to be done so that they are safe and cost effective.  Observe in the inspection of the anomalies and recoat process, (hot wax and two part epoxy).  Responsible for all aspects of the project and two utility inspectors.  

Case No. U-16388 Continental Resources, Inc. Exhibit R-_____________ (TT-1)

TT-1 – Page 2

   2007  JRJ Energy Services, LLC  Quicksilver Sr. Materials Person‐ Quicksilver Resources Lake Arlington, Texas Pipeline Project.  Received, inventoried, and issued to the contractor, all material necessary to construct a dual 2500 hp compressor station with related facilities.   2006  JRJ Energy Services, LLC  DTE Energy Chief Inspector. 10,000’ of 8” steel.  Oversaw all tasks on installing this system and asbuilts.  Ordering the material for a 16” bypass and a two valve placement setting and 130’ of 16” main plus the asbuilts for DTE Energy.  2006  JRJ Energy Services, LLC     Utility Inspector.  Corrosion inspections on the 36” pipeline by Grand Rapids, MN.  Qualified on the coating box inspection kit which consists of digital surface thermaprobe, dry film thickness gage, spring micrometer, sspc grit blast, hardness gage, hygrometer.  Duties were measuring the thickness of frost, digging and the coating along with the clock spring installation.  2005  JRJ Energy Services, LLC Project for Plains LPG consisting of 4,000 feet of 4” schedule 80 pipe for propane storage.  Insulating kits for valves and installing anodes.  2003‐2005  JRJ Energy Services, LLC  DTE Energy Welding/Chief Inspector.  Assigned to DTE Energy on numerous projects throughout the state.  Projects consisted of new pipeline lay, new meter stations, new storage field facilities and pipeline integrity work.  Backfilling, digging, coating, gas scope and visual inspection of welds, pit gauge and asbuilting.  1997‐2002  InfraSource Field Specialist‐ Michigan Trenching Services, Inc.  Performed topo work for the engineering department, customer service on gas meter locations and located placement of gas mains.  

TT-2 – Page 1

Michigan Gas Safety Standards 49 CFR 192.287 and 49 CFR 192.307

Case No. U-16388 Continental Resources, Inc. Exhibit R-_____________ (TT-2)

TT-3 – Page 1

Certifications

Case No. U-16388 Continental Resources, Inc. Exhibit R-_____________ (TT-3)

STATE OF MICHIGAN

BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION

* * * * * In the matter, on the Commission's own motion, ) to order Continental Resources, Inc., to show cause ) why it should not be found in violation of ) 1929 PA 9, MCL 483.101 et seq. or 1965 PA 165, ) Case No. U-16388 MCL 483.151 et seq. for construction of a ) pipeline in Hillsdale and Jackson Counties without ) Commission authorization or approval. ) )

PROOF OF SERVICE

Deliah A. Fowler says that she is an employee of VARNUM, RIDDERING, SCHMIDT & HOWLETT LLP and on August 24, 2010, she caused to be served a copy of the Direct Testimony and Exhibits of Tim Thon and Proof of Service upon the following persons in the attached Service List by electronic mail.

I declare that the statement above is true to the best of my information, knowledge, and

belief.

_________________________________________ Deliah A. Fowler

2

SERVICE LIST

Hon. Mark E. Cummins Administrative Law Judge Michigan Public Service Commission 6545 Mercantile Way - Ste. 14 P. O. Box 30221 Lansing, MI 48909 cumminsm1@michigan.gov (Hard copy also sent by U.S. mail) Vincent J. Leone Assistant Attorney General Michigan Public Service Commission 6545 Mercantile Way – Ste. 15 P. O. Box 30221 Lansing, MI 48909 leonev@michigan.gov Daniel P. Bock Assistant Attorney General Environment, Natural Resources, and Agriculture Division 525 W. Ottawa Street Lansing, MI 48909 bockd@michigan.gov Michael H. Rhodes Loomis Ewert Parsley Davis & Gotting PC 124 W. Allegan Street, Suite 700 Lansing, MI 48933 mhrhodes@loomislaw.com John H. Norris Dickinson, Wright, PLLC 38525 Woodward Ave., Suite 2000 Bloomfield Hills, MI 48304 jnorris@dickinsonwright.com

Parties to MPSC Case Nos. U-16122 and U-16201: Hon. Sharon L. Feldman Administrative Law Judge Michigan Public Service Commission 6545 Mercantile Way - Ste. 14 P. O. Box 30221 Lansing, MI 48909 feldmans@michigan.gov Anne M. Utivlugt Assistant Attorney General Michigan Public Service Commission 6545 Mercantile Way – Ste. 15 P. O. Box 30221 Lansing, MI 48909 uitvlugta@michigan.gov John King Michigan Public Service Commission 6545 Mercantile Way - Ste. 14 Lansing, MI 48911 kingj5@michigan.gov Travis Warner Michigan Public Service Commission 6545 Mercantile Way - Ste. 14 Lansing, MI 48911 warnert3@michigan.gov