PLAINS PIPELINE, L.P.

Incident Narrative

APPROXIMATELY 4 BARRELS OF CRUDE OIL WERE RELEASED FROM THE 30"" MANIFOLD PIPING AT MCCAMEY CACTUS II STATION. THE DATE/TIME OF THE RELEASE (PART A Q4) IS INDICATIVE OF THE EARLIEST POSSIBLE TIME THE RELEASE COULD HAVE STARTED, AS IT WAS THE LAST TIME THE STATION OPERATOR HAD VISITED THE LOCATION AND CONFIRMED THERE WAS NO RELEASE OF CRUDE OIL. THE CAUSE OF THE RELEASE WAS ATTRIBUTED TO INTERNAL CORROSION AND FURTHER INFORMATION REGARDING THIS CAUSE WILL BE PROVIDED PENDING FURTHER INVESTIGATIONS. SUPPLEMENTAL: THE CAUSE OF THE RELEASE IS ATTRIBUTED TO INTERNAL CORROSION AS A RESULT OF WATER DROP-OUT/ACID, AS DETERMINED BY VISUAL EXAMINATION OF THE RELEASE POINT AND EVALUATION OF THE FLOW CONDITIONS OF THE LINE. TO PREVENT FUTURE INCIDENTS, PLAINS PURGED, AIR-GAPPED, AND PLACED THE FAILED SECTION OF PIPE OUT OF SERVICE. SUPPLEMENTAL (2): PER THE TEXAS RAILROAD COMMISSIONS REQUEST TO UPDATE THIS REPORT, THE SUPPLEMENTAL NARRATIVE HAS BEEN UPDATED TO INCLUDE FURTHER PREVENTATIVE MEASURES: FOLLOWING THE INCIDENT, A REVIEW OF ALL FACILITY PIPING WAS COMPLETED TO IDENTIFY LINES THAT HAVE SIMILAR OPERATING CONDITIONS TO THE LINE THAT FAILED. THE 24"" SURGE LINE WAS IDENTIFIED TO HAVE SIMILAR OPERATING CONDITIONS TO THE LINE THAT FAILED: AN NDT INSPECTION WAS COMPLETED, AND IT WAS PLACED ON A MONITORING SCHEDULE. FURTHER, CHANGES WERE MADE TO THE FLUSHING PLAN ON THE 24"" SURGE LINE TO REDUCE RISK OF SIMILAR INCIDENTS. THE STATION PIPING HAS NOT BEEN ABANDONED BUT IS CURRENTLY OUT-OF-SERVICE, AND THERE IS NO RISK OF RELEASE FROM THIS SEGMENT.