b'APPENDIXFrequency of MonitoringThe frequency of monitoring conditions along our transmission right-of-ways (ROWs) is based on criteria documented in our O&M Manual that have been established to meet or exceed federal and state regulations. Inspections and maintenance work are performed regularly and pipeline segments are replaced when deemed necessary to maintain the safe delivery of natural gas to Atmos Energy customers.The Atmos Energy Federal Pipeline Integrity Management (PIM) program provides for enhanced preventive and mitigative measures already in place to maintain the safe and reliable operation of our transmission pipeline system. The PIM program includes risk modeling that takes into account both the risks posed to our pipeline systems and the potential impacts of those risks. High consequence areas (HCAs) along the pipeline are typically densely populated areas or rural areas containing identified sites adjacent to the pipeline that pose considerably more risk to human life. Identified sites may be churches, schools, hospitals, daycare centers, assisted-living facilities, campgrounds, or other buildings and outside areas where people congregate. Additional inspections of pipelines within HCAs, as well as certain pipelines outside of HCAs, are conducted in accordance with the Atmos Energy federal and state PIM programs.The frequency of monitoring the conditions of our distribution pipelines is based on our O&M Manual and our Distribution Integrity Management (DIM) program, both of which have been established in conjunction with federal and state regulations. Distribution pipeline segments are regularly subjected to inspection and maintenance work, such as leak surveys and corrosion control, and are replaced as necessary. Our DIM program includes risk modeling that takes into account both the risks posed to our distribution pipeline systems and the potential consequences of those risks.Commitment to Safety and Protecting Our EnvironmentWe are committed to replacing all remaining cast iron main by the end of 2021.In addition, Atmos Energy utilizes a number of practices in its day-to-day operations to prevent or reduce methane emissions. Some of the practices include, but are not limited to, the following: Drawing down transmission line pressure when repairing or working on the pipelines to reduce natural gas released to the atmosphere. Rerouting gas to minimize or prevent venting or blowdowns. Installing pipeline stopples and bypasses as necessary to maintain operations and minimize extent of blowdown. Utilizing flares to combust methane instead of releasing methane to the atmosphere.Finally, the Companys methane emissions intensity rates for 2019 are as follows: Atmos Energy0.40 percent based on the amount of natural gas received at city gate stations (34,134 MT CH4 total emitted in 2019). The emission intensity is calculated using EPA-reported fugitive emissions data and Company data of natural gas distribution system volumetric throughput. The EPA-reported emissions data is based on a combination of EPA emission factors and data calculated using the leak testing described above.You may find more information on our commitment to pipeline safety on our website at atmosenergy.com.ATMOS ENERGY CORPORATION'