HOLLY ENERGY PARTNERS - OPERATING, L.P.

Incident Narrative

ON TUESDAY, 7/9/2024, A MAINTENANCE CREW HYDRO EXCAVATED AROUND AND UNDERNEATH STATION PIPING IN ORDER TO IDENTIFY ANY UNDERGROUND ASSETS PRIOR TO A COMMENCING WORK ON A PLANNED RISK MITIGATION PROJECT AT RILEY STATION. THE HYDRO EXCAVATION PHASE OF THE PROJECT WAS COMPLETED ON 7/9/2024, AND PROJECT WORK WAS SLATED TO BEGIN ON THURSDAY, 7/11/2024. AT APPROXIMATELY 7:12 A.M. MST ON THE MORNING OF THURSDAY, 7/11/2024, THE COMPANY FIELD TECHNICIAN ARRIVED TO PERFORM DAILY ROUTINE MAINTENANCE AT THE STATION. THERE WAS NO PRODUCT ON THE GROUND WHEN THE TECHNICIAN ARRIVED, SO HE DEPARTED THE SITE TO PERFORM ADDITIONAL DAILY ROUTINE MAINTENANCE IN HIS OTHER ASSIGNED AREAS. AROUND 8:40 A.M. MST, THE COMPANY'S I&E TECHNICIAN ARRIVED AT THE STATION TO BEGIN PREPARING FOR WORK ON THE AFOREMENTIONED RISK MITIGATION PROJECT. UPON ARRIVAL, HE DISCOVERED CRUDE OIL HAD RELEASED INTO THE PREVIOUSLY HYDROVAC'D DITCH. AFTER FURTHER ONSITE INVESTIGATION, IT WAS DETERMINED THAT THE CRUDE OIL HAD RELEASED FROM A 3/4"" STEEL PIPE ON THE 10"" SUCTION LINE GOING TO THE MAINLINE PUMPS AT THE STATION. THE PIPELINE WAS NOT RUNNING AT THE TIME OF DISCOVERY OF THE RELEASE. **THE FAILED 3/4"" STEEL PIPE IS NOT PART OF 6"" REGULATED MAINLINE PIPE; THEREFORE, IS NOT CONSIDERED A REGULATED COMPONENT OR PIPE. IMMEDIATE RESPONSE ACTIONS WERE INITIATED AND A VACUUM TRUCK, WHICH WAS NEAR RILEY STATION WHEN THE RELEASE WAS DISCOVERED, WAS DISPATCHED TO ASSIST IN FREE PRODUCT REMOVAL. STATION CLEANUP IS ONGOING AND THE FAILED 3/4"" STEEL PIPE HAS ALREADY BEEN REMOVED. COMPLETED DELINEATION AND REMOVAL OF ALL IMPACTED SOIL AS OF FRIDAY, 8/2/2024. WAITING ON FINAL REPORT FROM TRC AND WILL SUBMIT TO TEXAS RAILROAD COMMISSION FOR CLOSEOUT ONCE RECEIVED.