MEDALLION OPERATING COMPANY, LLC

Incident Narrative

ON WEDNESDAY, MAY 20TH 00:30, MEDALLION CONTROL CENTER OPERATOR WAS OBSERVING VIDEO SURVEILLANCE THE SECURITY AND SPOTTED WHAT WAS DESCRIBED AS A SHADOW NEAR THE CM-2500 METER SKID AT MEDALLION'S REAGAN STATION. THE CONTROL CENTER IMMEDIATELY DISPATCHED LOCAL ON-CALL OPERATION PERSONNEL TO INVESTIGATE AND CONTINUED TO MONITOR THE STATION ON THE SURVEILLANCE CAMERA AND THE ""SHADOW"" DID NOT NOTICEABLY APPEAR TO INCREASE IN SIZE. THE LOCAL PERSONNEL ARRIVED AT APPROXIMATELY 02:30 AND FOUND A RELEASE HAD OCCURRED NEAR THE STATION'S CM-2500 METER SKID AND ISOLATED THE LEAK BY CLOSING THE TWO 1"" HAND OPERATED VALVES UPSTREAM AND DOWN STREAM OF THE LEAK. THE LOCAL OPERATOR NOTIFIED THE CONTROL CENTER AT 02:30 INDICATING A RELEASE HAD OCCURRED AND THAT IT HAD BEEN ISOLATED AND THE STATION COULD CONTINUE OPERATING. AFTER CONFIRMATION OF A REPORTABLE ACCIDENT BY THE LOCAL ON-CALL OPERATION PERSONNEL, MEDALLION MADE A TELEPHONIC NOTIFICATION TO THE TEXAS RAILROAD COMMISSION AT 03:13. AN INVESTIGATION DETERMINED THE RELEASE OCCURRED FROM AN IMPROPERLY INSTALLED 3/8"" STAINLESS STEEL TUBING. THE TUBING WAS NOT LANDED IN THE FITTING FULLY AND THE NUT WAS NOT PROPERLY TORQUED SO THE FERRULE DID NOT COMPRESS ON THE TUBING. AS A MEANS TO PREVENT RECURRENCE, MEDALLION INSTALLED NEW TUBING AND FERRULE ENSURING THE TUBING WAS PROPERLY LANDED IN THE FITTING AND THE NUT WAS TIGHTENED SUFFICIENTLY AT 08:15. THE TOTAL VOLUME OF CRUDE OIL RELEASED WAS 2 BARRELS AND ALL WAS RECOVERED BY VACUUM TRUCK AND SOIL REMEDIATION ON MAY 22, 2020.