HARVEST MIDSTREAM COMPANY

Incident Narrative

AT APPROXIMATELY 8:30 AM ON SUNDAY JULY 7, 2024, PIPELINE OPERATORS FOR HARVEST STARTED HURRICANE PREPARATION TASKS AT THE MIDWAY HUB STATION. AT 8:50 AM THEY DISCOVERED THAT THE MIDWAY HUB GARDENDALE INTERCONNECT OUTGOING 16' LATERAL WAS LEAKING OIL ONTO THE CALICHE PAD AND IMMEDIATELY NOTIFIED THE HARVEST FOREMAN. AT 8:51 AM THE OPERATOR CONTACTED THE PIPELINE CONTROL ROOM OPERATOR TO CLOSE ALL FLOW INTO AND OUT OF MIDWAY HUB. AT 8:52 AM THE OPERATOR CONTACTED THE HARVEST SR FOREMAN TO NOTIFY ABOUT THE LEAK. AT 9:00 AM (PER CONTROL ROOM LOG) CONTROL ROOM CLOSED BOTH MOV-6002 AND TANK OUTLET MOV-2001 IN ORDER TO ISOLATE TO DETERMINE THE SOURCE OF THE LEAK. 9:00 AM WAS DESIGNATED AS THE TIME THE ACCIDENT WAS CONFIRMED. THE HARVEST OPERATIONS MANAGER AND THE EHS SPECIALIST WERE NOTIFIED AT APPROXIMATELY 9:12 AM. AT APPROXIMATELY 9:20 AM MOV-3032 WAS CLOSED TO FURTHER ISOLATE THE LEAK ON THE UPSTREAM SECTION OF PIPE. AT 9:50 AM HARVEST MAKES FIRST CONTACT TO TEXAS RAILROAD COMMISSION. AT APPROXIMATELY 10:15 AM A VACUUM TRUCK ARRIVED AT SITE AND BEGAN EVACUATING OIL FROM THE ISOLATED SECTION OF PIPE. AT APPROXIMATELY 10:45 AM THE 3RD PARTY CONTRACTOR ARRIVED AT SITE WITH GATOR DRYING AGENT. AT 11:46 AM FOREMAN MAKES CALL TO RRC TO UPDATE PROGRESS ON THE CLEANUP EFFORT AND GETS THE OK TO EVACUATE SITE FOR FURTHER HURRICANE PREPARATIONS. BY APPROXIMATELY 1:30 PM THE VACUUM TRUCK FINISHED PULLING ~70 BBLS FROM THE ISOLATED SECTION OF LINE AND EMPTIED THESE LIQUIDS BACK INTO TANK 2000. BY 3:00 PM THE REMAINING PARTIES ON SITE SECURED THE SITE AND EVACUATED FOR FURTHER HURRICANE PREPARATIONS. AT 12:00 ON MONDAY, JULY 8TH 2024, HARVEST CONSTRUCTION FOREMAN EXAMINED THE SPILL TO WORK ON A CLEAN-UP PLAN. AT 2:00 PM HE MET WITH A REPRESENTATIVE FROM ENBRIDGE DUE TO A LINE CROSSING INTERSECTION. AT 4:00 PM HE MET WITH 3RD PARTY CONTRACTOR TO ORGANIZE A WORK PLAN FOR THE NEXT DAY. AT 7:30 AM TUESDAY JULY 9TH, 2024, HARVEST CONSTRUCTION FOREMAN, CONTRACTORS, AND AN ENBRIDGE REPRESENTATIVE ARRIVED ON-SITE AND BEGAN TO EXCAVATE THE IMPACTED CALICHE/SOIL. THE CREWS SECURED THE PARTIAL EXCAVATION AND DEMOBILIZED FROM SITE AROUND 5:00 PM. ON WEDNESDAY JULY 10TH 2024 AT 8:00 AM THE CREWS BEGAN WORKING AT SITE AND BY 12:00 PM THURSDAY JULY 11TH, 2024, THE PIPELINE WAS COMPLETELY EXCAVATED AND PERSONNEL COULD ENTER THE EXCAVATION TO INITIALLY EXAMINE THE EXTERNAL SURFACE OF THE LEAK ON THE BELOW GRADE ELBOW OF THE RISER. THE FAILED PIPE SEGMENT AND ELBOW WAS CUT-OUT AT 2:00 PM. THE FAILED ELBOW AND ADJACENT PIPING WAS TAKEN BACK TO THE CONTRACTOR'S FACILITY TO PREP FOR TRANSPORT TO ADV INTEGRITY FOR ANALYSIS. ALL OPERATORS AND CONTRACTORS DEMOBILIZED FROM THE SITE AND SECURED THE AREA WITH FENCING BY 5:00 PM. ON FRIDAY JULY 12TH, 2024, AT 1:30 PM ADV INTEGRITY RECEIVED THE SECTION OF PIPE AND ASSUMED CUSTODY. AS THE ANALYSIS OF THE PIPE SEGMENT IS NOT COMPLETE AT THE TIME OF THIS REPORT, THE ONGOING INVESTIGATION TEAM IS MAKING THE PRELIMINARY DETERMINATION THAT INTERNAL CORROSION IS THE APPARENT CAUSE. ONCE THE FINAL REPORT AND THE RCA ARE COMPLETE, THE REPORT SHALL BE UPDATED IF NECESSARY. UPDATE FOR SUPPLEMENTAL REPORT: ADV'S ANALYSIS OF THE CORROSION DEPOSITS INDICATED THAT THE CORROSION OBSERVED OCCURRED IN AN ENVIRONMENT CONTAINING HIGH LEVELS OF BACTERIA LEADING TO MICROBIAL INFLUENCED CORROSION EXACERBATED THROUGH THE PRESENCE OF CO2, WATER AND OTHER DEPOSITS THAT COLLECTED ALONG THE BOTTOM OF THE ELBOW. THE PITS-IN-PITS MORPHOLOGY IDENTIFIED VIA METALLOGRAPHY IS COMMONLY IDENTIFIED WHEN MICROBIAL INDUCED CORROSION (MIC) OR UNDER DEPOSIT CORROSION IS PRESENT. ROOT CAUSE ANALYSIS REVEALED THE NEED FOR AN ENHANCED OPERATIONAL DEADLEG PIPING REVIEW. THE APPROACH WILL INVOLVE A COMPREHENSIVE IDENTIFICATION AND DOCUMENTATION OF ALL DEADLEG PIPING, RISK ASSESSMENT OF THESE AREAS, AND THE INTEGRATION OF DESIGN MODIFICATIONS AIMED AT MINIMIZING OR ELIMINATING DEADLEGS WHERE FEASIBLE. ROLLOUT TARGET Q4 2024.