CR PERMIAN PROCESSING LLC

Incident Narrative

THE COMPANY RECEIVED NOTIFICATION OF A SUSPECTED LEAK AT THE PECOS RIVER WHERE THE COMPANY HAS 4 LINES THAT CROSS THE PECOS RIVER. FIELD PERSONNEL WERE DISPATCHED TO THE SCENE AND ONCE THE COMPANY HAD CONFIRMED A GAS RELEASE, WE NOTIFIED THE RAILROAD COMMISSION OF TEXAS INCIDENT LINE AND THEN NOTIFIED THE NRC. THE COMPANY-CONTROLLED ACCESS TO THE ROWS ON EACH SIDE OF THE PECOS RIVER AND STARTED WORK TO DETERMINE WHICH LINE WAS LEAKING. THE COMPANY BLEW EACH LINE DOWN TO DETERMINE WHICH LINE WAS THE LEAKING LINE. THE ORDER THE COMPANY BLEW THE PIPELINES DOWN WAS THE 10"" GAS GATHERING, 8"" GAS TRANSMISSION, 6"" NGL AND THEN THE 8"" NGL LOOP TO LONE STAR. THE SECTION OF BORE PIPE THAT LEAKED HAS BEEN REMOVED FROM THE BORE AND SEVERAL PIPE SPECIMENS, INCLUDING THE WELD THAT HAD THE HOLE, HAVE BEEN SENT TO A METALLURGY LAB FOR FAILURE ANALYSIS. A NEW BORE WAS DRILLED, AND THE NEW SEGMENT OF PIPE WAS INSTALLED AND PUT INTO SERVICE. ILI TOOLS HAVE BEEN RUN ON THE ENTIRE 8"" NGL LOOP TO LONE STAR AND THE COMPANY EXPEDITED THE DATA RESULTS AND SHOULD HAVE RESULTS 45 TO 60 DAYS FROM THE DATE OF THE SUCCESSFUL ILI TOOL RUN ON 11/18/2021. THE ILI TOOL RUN REQUIRED NO IMMEDIATE REPAIRS, THERE IS ONE DENT AND ONE CORROSION SPOT WE ARE INVESTIGATING, AND RE-INSPECTION HAS BEEN SET TO THE MAXIMUM 5 YEARS ACCORDING TO TRRC SECTION 8.101(A)(2). THE ELEMENT MATERIALS TECHNOLOGY FINAL REPORT INDICATED FAILURE DUE TO A COMBINATION OF CREVICE AND GENERAL CORROSION THAT OCCURRED ON AND NEAR GIRTH WELDS AND HEAT AFFECTED ZONES. THE CORROSION HAD CREATED A THROUGH-WALL PENETRATION THAT RESULTED IN THE PIPE LEAKAGE. TO ESTIMATE THE LEAKED QUANTITY, WE ARE ASSUMING THAT THE LEAK BEGAN ON 10/16/21. THE AERIAL PIPELINE PATROL REPORT COMPLETED ON 10/15/21 STATES THAT NO LEAKS WERE OBSERVED, WE BELIEVE IT IS CONSERVATIVE TO ASSUME THE LEAK STARTED THE NEXT DAY. THE LEAK WAS STOPPED ON THE EVENING OF 10/28/21 THUS 13 DAYS. TAKING INTO ACCOUNT THE OBSERVED LEAK QUANTITIES ALONG WITH THE TYPE OF FAILURE OBSERVED (NOT A RUPTURE) WE BELIEVE A 0.5 CM DIAMETER HOLE IS A CONSERVATIVE ESTIMATE (THE HOLE OBSERVED, AND MEASURED POST REMOVAL SUPPORTS THIS ANALYSIS.) A 0.5 CM HOLE WITH 1100PSI DIFFERENTIAL WILL FLOW APPROXIMATELY 650 BBL/D ACCORDING TO OUR CALCULATION WHICH MEANS A TOTAL LEAKED VOLUME OF 8450BBLS. OF WORTH NOTING IS THE LEAKED FLUID IS A NGL WHICH IS A HIGHLY VOLATILE LIQUID, ENGINEERING ANALYSIS VIA OUR PROCESS SIMULATION INDICATES THAT COMPOSITION OF THE NGL FLASHES 100% TO VAPOR AT THE ATMOSPHERIC PRESSURES AS LONG AS TEMPERATURES REMAIN ABOVE 35F. AT ALL TIMES DURING THE LEAK AMBIENT GROUND AND AIR TEMPERATURES WERE WELL OVER 35F SO WE DO NOT BELIEVE ANY OF THE LEAKED MATERIAL REMAINED IN THE GROUND OR WATER AND INSTEAD WAS VAPORIZED TO ATMOSPHERE.