HOLLY ENERGY PARTNERS - OPERATING, L.P.

Incident Narrative

ON NOVEMBER 14 AT APPX. 09:56A CST, A COMMUNICATIONS FAILURE OCCURRED AFFECTING THE RUSSELL TO LOVINGTON PIPELINE SYSTEM. DUE TO THIS COMMUNICATIONS FAILURE, THE LINE WAS SUBSEQUENTLY SHUTDOWN WITHIN APPX. 2 MINUTES, AT 09:58A CST. FOLLOWING PROCEDURES, LOCAL OPERATING PERSONNEL WERE IMMEDIATELY NOTIFIED TO MAN THE STATION FOR THIS PIPELINE. AT APPX. 11:00A CST, A PIPELINE TECHNICIAN ARRIVED AT THE RUSSELL STATION AND DISCOVERED THE UNIT 1 PUMP WAS LEAKING OIL FROM THE OUTBOARD SEAL ONTO THE GROUND. THE TECHNICIAN IMMEDIATELY MADE NOTIFICATIONS TO HIS IMMEDIATE SUPERVISOR AND THE HEP CONTROL CENTER. AT APPX. 11:40A CST, IT WAS CONFIRMED THAT APPX. 36 GALLONS OF CRUDE OIL HAD LEAKED ONTO THE SOIL (TOTALLY CONTAINED WITHIN THE FENCE LINE OF THE STATION); A NRC NOTIFICATION WAS SUBSEQUENTLY MADE AT APPX. 12:31 CST. OVER THE NEXT HOUR, ADDITIONAL CREWS ARRIVED ON-SITE TO BEGIN CLEAN-UP AND, IN ALL, AFFECTED SOIL FOR THE APPX. 36 GALLONS RELEASED WAS ABLE TO BE DUG UP AND PLACED ON TARP FOR FINAL DISPOSAL. TO NOTE, ALTHOUGH SCADA AND CPM LEAK DETECTION IS IN PLACE FOR THIS LINE, IT WAS NOT OPERATIONAL OR FUNCTIONAL DUE TO THE COMMUNICATIONS FAILURE. IN ADDITION, BECAUSE THERE ARE TWO PUMPS (UNITS 1 AND 2) THAT FEED THIS LINE, IT WAS ABLE TO BE RESTARTED WITHIN APPX. 1 HOUR AND 15 MINUTES THROUGH ISOLATION OF THE PUMP LEAKING (UNIT 1) AND TURNING ON ANOTHER PUMP (UNIT 2). THE APPARENT CAUSE OF THIS RELEASE IS DUE TO AN EQUIPMENT FAILURE. SPECIFICALLY, OPERATING PERSONNEL BELIEVE RESIDUAL BUILDUP FROM RAIN EVENTS THAT HAD PREVIOUSLY OCCURRED LIKELY LED TO THERMAL STRESS ON THE OUTBOARD BEARING, SHAFT AND SEAL OF THE PUMP, CAUSING THESE COMPONENTS TO FAIL.