CAPROCK MIDSTREAM SOUTH TEXAS LLC

Incident Narrative

"AT 6:23 P.M. ON DECEMBER 10, 2025, A CONTRACTOR WAS NOTIFIED OF A POSSIBLE PIPELINE INCIDENT BY A MEMBER OF THE PUBLIC. THE CONTRACTOR CALLED THE OPERATOR, AND THE OPERATOR CHECKED LINE PRESSURE IN SCADA TO INVESTIGATE LEAK REPORT. OPERATOR IDENTIFIED UPSTREAM AND DOWNSTREAM VALVES BASED ON APPROXIMATE LOCATION REPORTED BY THE PUBLIC. AT 6:34 P.M., OPERATOR CONTACTED THE CONTROL ROOM AND INSTRUCTED THEM TO REMOTELY CLOSE THE UPSTREAM VALVE DUE TO A POTENTIAL LINE BREAK AND STARTED DRIVE DOWNSTREAM MANUAL VALVE LOCATION. CONTROL ROOM PERSONNEL EXECUTED THE COMMAND AND CONFIRMED THE UPSTREAM VALVE WAS SUCCESSFULLY CLOSED. FOLLOWING VALVE CLOSURE, LINE PRESSURE DROPPED SIGNIFICANTLY, AND UPSTREAM PRESSURE WAS CONTINUOUSLY MONITORED. AT 7:34 P.M., OPERATOR PERSONNEL CLOSED THE MANUAL DOWNSTREAM VALVE TO FURTHER ISOLATE THE AFFECTED SEGMENT. OPERATOR ARRIVED AT THE INCIDENT SITE AT APPROXIMATELY 8:00 P.M. TO CONDUCT A PRELIMINARY ON-SITE EVALUATION AND BEGIN PIPELINE REPAIRS. AT 9:01 P.M., THE OPERATOR DETERMINED THE EVENT MET THE PHMSA AND RAILROAD COMMISSION OF TEXAS (RRC) IMMEDIATE NOTICE REPORTING THRESHOLDS (CONFIRMED DISCOVERY) DUE TO AN UNINTENTIONAL LOSS EXCEEDING 3 MMCF. CREWS MOBILIZED TO THE SITE TO CUT OUT AND REPLACE FAILED SECTION OF PIPELINE. ON DECEMBER 16, 2025, AT APPROXIMATELY 7:00 P.M., REPAIRS WERE COMPLETED AND THE PIPELINE WAS PURGED. THE LINE WAS RETURNED TO SERVICE ON DECEMBER 17, 2025, AT APPROXIMATELY 5:00 A.M. FOLLOWING THE INCIDENT, THE FAILED PIPE SEGMENT WAS REMOVED AND SENT TO BAKER RISK FOR A METALLURGICAL ANALYSIS. THE FINAL REPORT IS EXPECTED BY THE END OF JANUARY, AND A SUPPLEMENTAL REPORT WILL BE SUBMITTED WITH INFORMATION ON THE CAUSE OF THE INCIDENT. 2/3/2026 SUPPLEMENTAL - THE METALLURGICAL LAB REPORT FROM BAKER RISK WAS RECEIVED ON 1/21/2026. IT WAS DETERMINED EXTERNAL CORROSION WAS THE CAUSE OF THE FAILURE. THE FOLLOWING SUMMARIZES THE CONCLUSIONS OF THE METALLURGICAL ANALYSIS REPORT: 1. THE PIPELINE WAS DAMAGED BY PITTING CORROSION. 2. THE PITTING CORROSION WAS LOCATED IN THE VICINITY OF THE 6 O