HOLLY ENERGY PARTNERS - OPERATING, L.P.

Incident Narrative

ON FEBRUARY 20 AT APPX. 9:48A CENTRAL, HEP PERSONNEL WERE PERFORMING ROUTINE STATION CHECKS WHEN THEY OBSERVED A SPOT OF SATURATED SOIL. PERSONNEL IMMEDIATELY BEGAN EXCAVATING TO DETERMINE THE SOURCE. AT APPX. 10:45A CENTRAL, PERSONNEL IDENTIFIED THAT THE LEAK WAS OCCURRING OFF THE DRAIN LINE OF A SEAL POT LEADING TO AN UNDERGROUND SUMP. TO NOTE, THIS SUMP IS CONNECTED TO A STATION PUMP FED BY A REGULATED MAINLINE. ONCE THE SOURCE OF THE LEAK WAS IDENTIFIED, PERSONNEL IMMEDIATELY NOTIFIED THE AREA SUPERVISOR AND HEP CONTROL ROOM. PERSONNEL THEN DISCONNECTED THE LINE FROM THE SEAL POT AND PLACED A PLUG, STOPPING THE RELEASE. AT APPX. 11:58A CENTRAL, PERSONNEL WERE ABLE TO MAKE A DETERMINATION OF AN APPX. 4 BBLS RELEASE OF REFINED PRODUCT (GASOLINE). TO NOTE, ALTHOUGH THERE IS CPM LEAK DETECTION ON THE LINE, IT COULD NOT HAVE DETECTED THIS LEAK SINCE THE SOURCE WAS AT THE LINE DRAIN LINE OF THE SUMP (THERE ARE NO TRANSMITTERS ON THE DRAIN LINE). BECAUSE THIS PIPELINE IS AN INTRASTATE ASSET, AGENCY NOTIFICATIONS WERE MADE TO THE BOTH THE NATIONAL RESPONSE CENTER (NRC) AND TEXAS RAILROAD COMMISSION (TRRC). AT THE TIME OF THIS INITIAL REPORT (3/17/2023), APPX. .4 BBLS OF PRODUCT HAS BEEN RECOVERED (NONE FREE STANDING LIQUID BUT RATHER DETERMINED BY THE EXCAVATED, SATURATED SOIL). IN INVESTIGATING THIS RELEASE, THE APPARENT CAUSE IS THOUGHT TO BE A THREADING FAILURE THAT OCCURRED BETWEEN THE SEAL POT AND THE BEGINNING OF THE DRAIN LINE. THE FAILED THREADING IS LIKELY DUE TO IMPROPER INSTALLATION. AT THE TIME OF THIS FINAL REPORT (6/12/2023), APPX. 2.4 BBLS IS THE FINAL VOLUME OF RECOVERED PRODUCT (NONE FREE STANDING LIQUID BUT RATHER DETERMINED BY THE EXCAVATED, SATURATED SOIL).