MEDALLION OPERATING COMPANY, LLC

Incident Narrative

UPDATE: (8/4/20) ANALYTICAL RESULTS RECEIVED 6/29/20 TAKEN FROM THE AFFECTED SOIL PILES, INDICATED SOIL WAS REMEDIATED AND CLEARED. THE SOIL WILL BE USED FOR GRADING AND FILL MATERIAL ONSITE. ON THURSDAY, MAY 5TH AT 0413, MEDALLION 158 STATION LOST COMMUNICATION. AT 04:30 THE CONTROL CENTER DISPATCHED LOCAL ON-CALL COMMUNICATIONS PERSONNEL TO INVESTIGATE THE FAILURE. THE LOCAL PERSONNEL ARRIVED AT APPROXIMATELY 05:30 AND DISCOVERED THAT ALL ELECTRICAL POWER TO THE STATION HAD FAILED AND NOTICED OVERHEAD POWERLINES ADJACENT TO THE STATION SPARKING DUE TO CONTACT WITH EACH OTHER FROM HIGH WINDS. THE COMMUNICATIONS OPERATOR ALSO NOTICE LIQUID PUDDLED NEAR THE STATION'S PUMP AREA THAT APPEARED TO BE CRUDE OIL. THE LOCAL COMMUNICATION OPERATOR NOTIFIED THE CONTROL CENTER AT 05:35 TO PROVIDE A REPORT ON THE LOSS OF POWER AND THE POTENTIAL RELEASE. THE CONTROL CENTER DISPATCHED ADDITIONAL RESPONSE PERSONNEL TO THE STATION TO ASSIST IN THE RELEASE AT 05:45. THE COMMUNICATIONS OPERATOR DID NOT IMMEDIATELY INVESTIGATE DUE TO SAFETY CONCERNS WITH THE ELECTRICAL LINES. AT 06:30 THE SITE WAS SECURED SO THAT RESPONSE PERSONNEL COULD ENTER THE STATION AND DETERMINE THE SOURCE AND EXTENT OF THE OBSERVED RELEASE. AFTER CONFIRMATION OF A REPORTABLE ACCIDENT BY THE RESPONSE TEAM, A TELEPHONIC NOTIFICATION WAS MADE TO THE TEXAS RAILROAD COMMISSION AT 06:54. THE RELEASE OCCURRED FROM A CRACK THAT DEVELOPED IN A 3/8"" STAINLESS STEEL TUBING ON A PUMP SKID. THE INVESTIGATION OF THE ACCIDENT DETERMINED THAT THE POWER FAILURE WAS NOT RELATED TO THE RELEASE AND THE CRACK IN THE TUBING AND CRUDE OIL RELEASE BEGAN SOMETIME BETWEEN 16:30 ON MAY 4, WHEN THE LAST MAINTENANCE PERSONNEL LEFT THE STATION, AND THE POWER FAILURE ON THE MORNING OF MAY 5 AT 0413. THE RATE OF THE RELEASE OVER THAT PERIOD WAS NOT DETECTIBLE WITH SCADA. THE TUBING WAS UNSUPPORTED IN APPROXIMATELY A 30"" SPAN ON THE PUMP SKID. WHILE THE STATION WAS SHUT DOWN DUE TO THE POWER LINE ISSUES, MAINTENANCE CREWS REMOVED THE CRACKED TUBING AND INSTALLED PLUGS. THE STATION POWER WAS RESTORED AND RESUMED OPERATIONS AT 07:55 WITH THE PLUGS INSTALLED UNTIL THE TUBING COULD BE REINSTALLED WITH SUPPORT. ON MAY 7, MAINTENANCE PERSONNEL RETURNED TO THE SITE AND REINSTALLED THE TUBING WITH SUPPORT TO PREVENT RECURRENCE.