ENERGY TRANSFER COMPANY

Incident Narrative

AT APPROXIMATELY 9:00 A.M. ON JULY 18TH, 2016, ETC OPERATIONS OBSERVED A FIRE EAST OF AND ADJACENT TO THE ETC KING RANCH GAS PLANT (KRGP). THE LOCATION OF THE FIRE WAS WITHIN A FENCED PIPELINE TERMINAL FACILITY CONTAINING INCOMING GATHERING PIPELINES, SCRUBBERS, MEASUREMENT EQUIPMENT AND DEPARTING RESIDUE PIPELINES (TERMINAL). THIS TERMINAL CONTAINS SEVERAL ETC AND THIRD PARTY PIPELINE ASSETS. AT APPROXIMATELY 9:02 AM, ETC OPERATIONS INITIATED AN ESD AT THE PLANT. THE PLANT PERSONNEL WERE EVACUATED TO THEIR ESTABLISHED MUSTER POINT. AT 9:15 A.M., THE CORPORATE EMERGENCY NOTIFICATION MATRIX WAS INITIATED. DURING THE CALL, ETC GAS CONTROL VERIFIED VIA THE SCADA SYSTEM THAT THEY WERE MONITORING PRESSURE LOSSES ON SEVERAL ASSETS AT THE TERMINAL. NOTIFICATIONS WERE MADE TO THIRD PARTY PIPELINE ASSET OWNERS, LOCAL, STATE, AND FEDERAL AGENCIES. OPERATIONS MANAGEMENT DISPATCHED PERSONNEL TO SHUT IN ALL PIPELINE INLET & OUTLETS TO THE PLANT AND ISOLATE THE TERMINAL AS WELL. OPERATIONS UTILIZED THE SCADA SYSTEM TO MONITOR AND VERIFY PIPELINE PRESSURES. ONCE THE REMOTE VALVES WERE CLOSED ON AFFECTED PIPELINES TO ISOLATE THE TERMINAL, OPERATIONS MONITORED THE LOCATION UNTIL THE FIRE SUBSIDED. ON THE MORNING OF JULY 19TH, OPERATIONS AND OTHER COMPANY REPRESENTATIVES ACCESSED THE TERMINAL TO INITIATE OUR PRELIMINARY INVESTIGATION THAT IS STILL ONGOING. ALTHOUGH THE INVESTIGATION IS ONGOING, IT APPEARS THAT THE FIRE ORIGINATED FROM AN ADJACENT GATHERING SYSTEM THAT EXPOSED THE REGULATED TRANSMISSION PIPELINE TO EXCESSIVE HEAT AND ULTIMATELY CAUSED IT TO FAIL. SUPPLEMENTAL/FINAL DATED 12/7/2016 REVISED LATITUDE IN PART A TO REFLECT CORRECT COORDINANCE: LATITUDE 27.46800000 LONG -98.04990000 TO REFLECT KLEBERG COUNTY TX.