OSAGE PIPE LINE COMPANY, LLC

Incident Narrative

ON FRIDAY, JULY 8, 2022 AT APPX. 12:29 AM CST, THE ARTESIA CONTROL CENTER RECEIVED A LOSS OF SUCTION ALARM ON THE OSAGE PIPELINE, WHICH RESULTED IN A SHUTDOWN OF THE MAINLINE PUMP AT CUSHING. THIS ALARM ALSO TRIGGERED THE AUTOMATIC SHUTDOWN OF THE RALSTON PUMP STATION AT 12:30 AM CST AND THE HARDY PUMP STATION AT 12:32 AM CST. ANOTHER ALARM OCCURRED AT 12:35 AM CST. OSAGE PERSONNEL BEGAN TO INVESTIGATE THE POTENTIAL CAUSE OF THE ALARMS AND CONTACTED THE UPSTREAM OPERATOR AS PART OF THIS EFFORT. OSAGE RESTARTED ITS MAINLINE PUMP AT CUSHING AT 12:40 AM CST (THE RALSTON AND HARDY STATIONS REMAINED OFFLINE), AND RECEIVED ANOTHER ALARM. OSAGE THEN SHUT DOWN THE MAINLINE PUMP AT CUSHING AT 12:43 AM CST AND BEGAN CLOSING IN VALVES. OSAGE LOCAL OPERATING PERSONNEL WERE DISPATCHED FOR FURTHER INVESTIGATION AND ARRIVED ON-SITE AT APPX. 2:16 AM CST. THESE PERSONNEL DID NOT IMMEDIATELY IDENTIFY ANY SIGNS OF A RELEASE. PERSONNEL THEN BEGAN TO FURTHER INVESTIGATE BY MOVING ALONG THE ROW WHEN, AT APPX. 3:26 AM CST, THEY IDENTIFIED SIGNS OF HEAVY HYDROCARBON ON THE GROUND AS WELL AS OVERSPRAY ON PIPELINE MARKERS. PERSONNEL IMMEDIATELY MADE CONTACT BACK TO THE ARTESIA CONTROL ROOM AND THEIR IMMEDIATE SUPERVISOR. OSAGE ALSO MADE INTERNAL NOTIFICATIONS TO OPERATIONS MANAGEMENT, R/EHS TEAM MEMBERS AS WELL AS OSROS. OSAGE THEN DISPATCHED OTHER LOCAL OPERATING PERSONNEL AND EMERGENCY RESOURCES, AND ACTIVATED CORPORATE EMERGENCY RESPONSE SUPPORT PERSONNEL. OSAGE MADE IMMEDIATE, EXTERNAL AGENCY NOTIFICATIONS TO THE NRC AND ODEQ AT APPX. 4:05 AM CST. AT APPX. 5:59 CST, LOCAL OPERATING PERSONNEL WERE ABLE TO IDENTIFY THE SOURCE OF THE RELEASE. BASED OFF INITIAL DATA TRENDS, CALCULATIONS AND ON-SITE VISUAL OBSERVATION, THERE WAS AN ESTIMATED 5,769 BBLS OF CRUDE RELEASED. UPDATE ON 03/30/2023: FOLLOWING FURTHER INVESTIGATION, OSAGE NOW ESTIMATES 7,110 BBLS OF CRUDE WERE RELEASED. TO NOTE, THE METHOD USED TO CALCULATE THE AMOUNT OF BARRELS RELEASED HAS A +/- ERROR RATE OF 7%, OR APPROXIMATELY 487 BARRELS. IF OSAGE DETERMINES THIS NUMBER SHOULD BE CHANGED, OSAGE WILL FILE A SUPPLEMENTAL REPORT. INITIAL RESPONSE ACTIVITIES OCCURRED UP TO 7/12/2022 AND THEN SHIFTED TO ON-GOING, BULK RECOVERY AND REPAIRS NEEDED FOR PIPELINE RESTART, WHICH OCCURRED ON 7/18/2022. OSAGE HAS DETERMINED THE CAUSE OF RELEASE TO BE STACKED HOOK CRACKS PRESENT IN THE PIPE AT THE TIME OF MANUFACTURE THAT GREW OVER TIME DUE TO PRESSURE CYCLE INDUCED FATIGUE. UPDATE ON 8/17/23: BECAUSE THE ACCIDENT REPORT REQUIRES A NUMERICAL VALUE IN SEC. A9, AND PHMSA HAS DIRECTED OSAGE TO INSERT A VALUE, OSAGE HAS ENTERED '6,567.12' WHICH IS AN ESTIMATED MINIMUM VALUE. TO NOTE, BASED ON ITS DATA, OSAGE BELIEVES THAT NEARLY ALL OF THE ESTIMATED 7,110 BARRELS RELEASED INTO THE ENVIRONMENT HAVE BEEN RECOVERED. THE MAJORITY OF CRUDE OIL RECOVERED WAS STORED IN A TANK (PLAINS T-500), WHICH ALSO CONTAINED WATER, AND THE TWO SUBSTANCES CANNOT BE MEASURED SEPARATELY. THE ESTIMATED MINIMUM VALUE PROVIDED IN SEC. A9 IS DERIVED FROM SUBTRACTING THE T-500 OPENING VOLUME (10,231.88 BARRELS) FROM THE T-500 CLOSING VOLUME 16,799 BARRELS (WHICH IS NET OF 20% ESTIMATED WATER CONTENT). OTHER UNKNOWN AMOUNTS OF RECOVERED CRUDE OIL WERE DISPOSED IN AN UIC WELL (ENTRAINED IN DISPOSED WATER), IN A LANDFILL (WITH INVESTIGATION-DERIVED WASTE, PPE, ABSORBENT BOOMS, ETC.), REMAINED IN FRAC TANKS USED TO STORE WATER FOR DISPOSAL IN THE UIC WELL, AND SOME PRODUCT MAY HAVE ALSO EVAPORATED. LASTLY, CERTAIN SMALL AMOUNTS OF CRUDE OIL MAY REMAIN IN SOIL AND SEDIMENT AT THE SITE AND ARE SUBJECT TO AN ON-GOING ENVIRONMENTAL FIELD INVESTIGATION. FOR THESE REASONS, OSAGE IS PROVIDING A MINIMUM ESTIMATED VOLUME OF COMMODITY RECOVERED AS 6,567.12. BUT BELIEVES THAT NEARLY ALL OF THE 7,110 ESTIMATED AS RELEASED HAVE BEEN RECOVERED.