"PLAINS PIPELINE, L.P."

Incident Narrative

"APPROXIMATELY 593 BARRELS OF CRUDE OIL WERE RELEASED FROM THE SAN PEDRO TO CATARINA 10"" PIPELINE. THE DATE AND TIME OF THE RELEASE (PART A Q4) IS INDICATIVE OF THE EARLIEST POSSIBLE TIME THE RELEASE COULD HAVE STARTED BASED ON PRESSURE READINGS. THE NATIONAL RESPONSE CENTER (NRC) WAS CONTACTED ON THE BASIS OF ESTIMATED COSTS EXCEEDING $50,000 (INITIAL: #1320334; 48-HOUR FOLLOW-UP: #1320341). A SUPPLEMENTAL REPORT WILL BE SUBMITTED PENDING FURTHER INVESTIGATION INTO THE CAUSE OF THE INCIDENT. SUPPLEMENTAL NARRATIVE: THE CAUSE OF THE RELEASE WAS ATTRIBUTED TO MATERIAL FAILURE OF THE PIPE OR WELD APPEARING CONSISTENT WITH HYDROGEN CRACKING THAT LIKELY OCCURRED AT OR NEAR THE TIME OF WELDING. TO REPAIR THE SECTION OF PIPE THAT FAILED, THE PIPE WAS CUT-OUT AND REPLACED. WHILE NO DEFICIENCIES WERE FOUND WITH INTERNAL PROCEDURES, PLAINS WILL REVIEW INTERNAL PROCEDURES TO ENSURE ADEQUATE DIRECTION IS PROVIDED FOR WELDERS AND REVISE AS NECESSARY TO PREVENT FUTURE INCIDENTS. PAA WILL SUBMIT A SUPPLEMENTAL REPORT PENDING FURTHER INVESTIGATION INTO POST-INCIDENT REMEDIATION EFFORTS. SUPPLEMENTAL NARRATIVE (2): VARIOUS UPDATES WERE MADE BASED ON THE NEW FORM FORMAT, INCLUDING THE VOLUME RECOVERED."