HOLLY ENERGY PARTNERS - OPERATING, L.P.

Incident Narrative

ON JANUARY 29, 2024 AT APPX. 10:00 AM CENTRAL, PERSONNEL AT THE ABILENE TERMINAL WERE WALKING THE FACILITY WHEN THEY OBSERVED PRODUCT POOLING UNDER A VALVE. HOWEVER, AT THE TIME THE RELEASE WAS IDENTIFIED, THE MAINLINE WAS NOT DELIVERING INTO THE TERMINAL AND, WAS ALREADY ISOLATED (IN CLOSED POSITION AND HOLDING TYPICAL PRESSURE AT APPX. 214 PSI). PERSONNEL THEN WENT ON TO PUT A PAN UNDER THE LEAKING VALVE, PLACE ABSORBENT PADS ON TO THE SATURATED SOIL AND, MAKE NOTIFICATIONS TO TERMINAL SUPERVISION AND THE CONTROL ROOM. THE CONTROL ROOM ISOLATED THE VALVE MOST UPSTREAM FROM THE FAILURE POINT (MOV #109) TO ALSO HELP ALLEVIATE PRESSURE INTO THE TERMINAL AND, ON THE AFFECTED SEGMENT. FOLLOWING INTERNAL PROCEDURES TO DETERMINE AN INITIAL VOLUME, TERMINAL PERSONNEL ESTIMATED 1.07 BBL. OF GASOLINE HAD BEEN RELEASED (UPON THE 48-HOUR UPDATE, IT WAS SUBSEQUENTLY IDENTIFIED THAT AN ESTIMATED 1.47 BBL. HAD BEEN RELEASED). ONCE THE LEAK WAS ISOLATED, CLEAN-UP ACTIVITIES CONTINUED THROUGHOUT THE DAY, WITH ALL AFFECTED SOIL BEING DUG OUT AND PLACED ON TARP, AWAITING PERMANENT DISPOSAL. DUE TO THE INITIAL ESTIMATED RELEASE VOLUME, NOTIFICATIONS WERE MADE TO THE NATIONAL RESPONSE CENTER (NRC), RAILROAD COMMISSION OF TEXAS (RRC) AND TEXAS COMMISSION ON ENVIRONMENTAL QUALITY (TCEQ). THE CAUSE OF THE LEAK IS DUE TO A DOUBLE, SEAL FAILURE (O-RINGS) AT THE VALVE STEM, AS DETERMINED BY THE VALVE MANUFACTURER'S INSPECTION. THIS HAS BEEN DOCUMENTED IN THE COMPANY'S INCIDENT MANAGEMENT SYSTEM TO BRING VISIBILITY TO THE EVENT (AND TYPE OF FAILURE) AS WELL AS FOR TRACKING PURPOSES (AS A MEANS TO IDENTIFY POTENTIAL TRENDS AND PREVENT REOCCURRENCE).