MONROE GAS STORAGE COMPANY, LLC

Incident Narrative

WHILE PERFORMING ROUTINE ROUNDS A MONROE GAS STORAGE EMPLOYEE ARRIVED AT THE T (T IS REFERRED TO AS WHERE THE WELL ROAD FROM THE EAST GATE MEETS THE WELL ROAD THAT LEADS LEFT TOWARDS WELL #7 AND RIGHT TOWARD WELLS #15,16,17, &9) APPROXIMATE AT 1646 AND DISCOVERED THE FIRE COMING FROM WHAT WE NOW KNOW WAS THE 12' EAST LATERAL. AFTER ASSESSING THE LOCATION OF THE INCIDENT, THE EMPLOYEE BEGIN CALLING IN ADDITIONAL PERSONNEL AND EMERGENCY OFFICIALS TO ASSIST WHILE SHUTTING DOWN THE FACILITY ONCE ADDITIONAL PERSONNEL ARRIVE THE LINE WAS ISOLATED MANUALLY AND ALLOWED TO BURN ITSELF OUT. MONROE GAS STORAGE EMPLOYEES DIRECTED THE FIRE DEPARTMENT TO THE INCIDENT AREA AND REQUESTED THAT THEY ACTIVELY COOLED THE SURROUNDING AREA TO ENSURE THE FIRE WAS CONTAINED. THE FIRE WAS OUT, AND INCIDENT CONTAINED APPROXIMATELY 40 MINUTES AFTER DISCOVERY. THE IDENTIFIED INTERNAL CORROSION WAS CONSISTENT WITH MESA CORROSION, TYPICALLY OCCURRING IN A CARBON DIOXIDE (CO2) ENVIRONMENT LIKELY EXACERBATED VIA THE PRESENCE OF SALT WATER AND SAND (RESULTING IN AN UNDER-DEPOSIT PHENOMENON). TO MITIGATE THE DAMAGE FROM THE FAILURE AND IDENTIFIED CORROSION MGS PERFORMED THE FOLLOWING: REPLACED IN KIND 42FT NORTH OF POINT OF FAILURE AND 801 FT WEST OF POINT OF FAILURE. REPLACED IN KIND ONE 90-DEGREE ELBOW. MGS ALSO INSTALLED A 2 INCH LOW POINT DRAIN. THE DETERMINATION OF HOW MUCH OF PIPE NEEDED TO BE REPLACE WAS MADE USING A COMBINATION OF VISUAL INSPECTION, HAND-HELD UT GAUGE AND GUIDED WAVE TECHNOLOGY. GUIDED WAVE TECHNOLOGY WAS UTILIZED UPSTREAM AND DOWNSTREAM OF REPLACED PIPE, OF WHICH NO ADDITIONAL INTEGRITY ISSUES WERE FOUND AND NO FOLLOW-UPS WERE RECOMMENDED. THE 2 INCH LOW POINT DRAIN WAS THE FIRST PHASE OF STEPS MGS IS TAKING TO PREVENT RECURRENCE, THE SECOND INCLUDES DEVELOPING AND IMPLEMENTING A PIGGING AND CHEMICAL TREATMENT PLAN PRIOR TO BRINGING THE 12' EAST LATERAL IN SERVICE.