FORMULA MIDSTREAM PARTNERS LLC

Incident Narrative

THE LEAK WAS DISCOVERED BY AN OUTSIDE CONTRACTOR DOING ELECTRICAL WORK ON UNRELATED EQUIPMENT NEARBY, AS PREVIOUSLY ANSWERED, THIS WAS DISCOVERED ON APRIL 2ND AT 12:50PM. IT WAS AT THE SAME TIME THAT MICHAEL WALKER, THE VP OF OPERATIONS FOR FORMULA MIDSTREAM, WAS CONTACTED BY TUCKER ENERGY SERVICES AND INFORMED OF THE LEAK. AT 12:51PM MICHAEL GAVE THE CALL TO SHUT OFF THE PUMPS AND SHUT DOWN THE LINE. FROM THERE, MICHAEL CALLED WILLIAM WEBSTER, FORMULA ANALYST, TO BEGIN THE EMERGENCY RESPONSE PROCESS AND DOCUMENT THE TIMING OF THE ACCIDENT REPORTING. MIKE MADE HIS WAY TO THE SUSPECTED LEAK SITE TO BEGIN THE DIAGNOSTICS AND ANALYZE THE SITUATION. WE EXPERIENCED AN UNUSUALLY HIGH COST OF ENVIRONMENTAL REMEDIATION DUE TO THE EXCESS DIRT REMOVAL COSTS. OLD TREE ROOT SYSTEM CAUSED THE OIL TO SEEP MUCH WIDER AND DEEPER INTO THE SOIL. THIS CAUSED THE DIRT REMOVAL VOLUME TO BE SIGNIFICANTLY LARGER THAN EXPECTED.WE REMOVED DIRT FROM OVER 4 FEET PAST THE LAST SIGNS OF SPOTTING IN ALL DIRECTIONS. THROUGH OUR METER READING WE DETERMINED THAT ONLY 10 BARRELS WERE LOST THROUGH THE PINHOLE. WE ALSO CONTACTED FREE NICHOLS, AN ENGINEERING FIRM, TO HELP UNDERSTAND THE LEAK FLOW RATE GIVEN OUR OPERATING PRESSURE AND PINHOLE SIZE. IT WAS DETERMINED THAT THIS WAS A SHORT TERM LEAK, NO MORE THAN 5 HOURS. ALTHOUGH WE WERE TREATING WITH PROPER CHEMICALS, IT SEEMS THAT OUR TREATMENT WAS INSUFFICIENT TO TREAT THE FLOW RATE WE WERE EXPERIENCING. THERE WAS A LAGGING EFFECT TO OUR TREATMENT PROGRAM AND THAT, COUPLED WITH OUR MISMATCHED CHEMICALS TO FLOW-RATE ISSUE CONTRIBUTED TO THIS INCIDENT. WE ARE DOUBLING UP ON OUR COUPON OBSERVATION AND TESTINGS AT AN ADDED SITE DOWNSTREAM OF THE INCIDENT SITE SO THAT WE CAN BETTER TREAT THE LINE WITH THE APPROPRIATE AMOUNT OF CHEMICALS.