MEDALLION OPERATING COMPANY, LLC

Incident Narrative

ON SUNDAY, AUGUST 12TH AT 0655, MEDALLION MEASUREMENT PERSONNEL RECEIVED A CALL FROM A CRUDE OIL TRANSPORT COMPANY ON-SITE INDICATING A LEAK AT ITS UNMANNED UPTON STATION (PUMP STATION). THE LEAK WAS CONFIRMED AT 0700 AND LOCAL OPERATIONS PERSONNEL WAS DISPATCHED. AT 0755 OPERATIONS PERSONNEL ARRIVED ON-SITE AND ISOLATED THE LEAK. THE STATION REMAINED OPERATIONAL BY DIVERTING CRUDE OIL TO STORAGE TANKS. THE INVESTIGATION FOUND THAT THE LEAK ORIGINATED FROM A 0.5"" SCHEDULE 80 NIPPLE FAILURE. THE NIPPLE WAS REPLACED IMMEDIATELY BUT THE ISOLATED PIPING REMAINED CLOSED WHILE CREWS WORKED TO CLEAN THE IMPACTED SOIL. THE STATION AND AFFECTED PIPING WAS RETURNED TO FULL OPERATIONAL SERVICE AT APPROXIMATELY 1000 ON AUG 12TH. THE INVESTIGATION INDICATED THAT THE RELEASE BEGAN AT APPROXIMATELY 2140 ON AUGUST 11TH. RECORDS INDICATE THAT THE INITIAL RELEASE OCCURRED WHEN THE NIPPLE DEVELOPED A CRACK BUT DID NOT COMPLETELY BREAK. WHEN OPERATIONS PERSONNEL ARRIVED, THE NIPPLE HAD SEPARATED COMPLETELY. IT WAS ALSO DETERMINED THAT THE FAILURE WAS THE RESULT OF IMPROPER SUPPORT. THE NIPPLE THAT FAILED WAS PART OF A PIPELINE APPURTENANCE FOR THERMAL RELIEF. ADDITIONAL FITTINGS HAD BEEN ADDED TO THE NIPPLE OVER TIME AS EXPANSION PROJECTS AT THE SITE OCCURRED. THE ADDED WEIGHT LACKED ADEQUATE SUPPORT CONTRIBUTING TO THE FAILURE OF THE NIPPLE. IN ADDITION, VISUAL EXAMINATION OF THE NIPPLE SHOWED PIPE WRENCH TEETH MARK ON THE THREADS REVEALING IMPROPER INSTALLATION. IMMEDIATE ACTION: THE SCHEDULE 80 NIPPLE WAS REPLACED WITH A SCHEDULE 160 NIPPLE. ADDITIONAL CORRECTIVE ACTIONS: (1) AN ENGINEERING ASSESSMENT HAS BEEN INITIATED AT ALL PUMP STATIONS TO IDENTIFY APPURTENANCES THAT ARE INADEQUATELY SUPPORTED. THE STUDY IS SCHEDULED TO BE COMPLETED BY 9/30. [STUDY IS COMPLETE, DEVELOPMENT OF ACTION PLAN TO ADDRESS FINDINGS IS UNDERWAY.] FINDINGS WILL BE REVIEWED, AND AN ACTION PLAN DEVELOPED TO ADDRESS ANY FINDINGS. (2) MEDALLION HAS BEGUN DEVELOPING A TECHNICAL DOCUMENT/STANDARD TO PROVIDE GUIDANCE FOR THERMAL RELIEF PIPING/TUBING DESIGN AND INSTALLATION. THIS DOCUMENT WILL BE COMPLETED AND IMPLEMENTED BY 4/1/2019. CLEAN UP ACTIVITIES CONTINUED AT THE SITE UNTIL THURSDAY, AUG 16TH. SOIL SAMPLES WERE COLLECTED, AND RESULTS ARE PENDING TO DETERMINE IF FURTHER REMEDIATION IS REQUIRED. DURING CLEAN UP MOST OF THE OIL WAS RECOVERED VIA VACUUM TRUCK. PRECIPITATION AT THE TIME OF THE RELEASE AIDED IN RECOVERY AND LIMITED THE IMPACT TO AFFECTED SOIL. 240 BBLS WERE RECOVERED AND SENT TO A RECYCLING FACILITY. THE TOTAL ESTIMATED RELEASED VOLUME IS 245 BBLS. A FINAL REPORT WILL BE SUBMITTED ONCE REMEDIATION ACTIVITIES ARE COMPLETE. [REMEDIATION ACTIVITIES AT THE FACILITY HAVE BEEN COMPLETED AND CONTAMINATED SOIL HAS BEEN RETURNED TO ACCEPTABLE LEVELS.]