HOLLY ENERGY PARTNERS - OPERATING, L.P.

Incident Narrative

****CORRECTED QUESTION 4, AND QUESTION 11 PER INSTRUCTIONS FROM BRIAN E. PIERZINA, P.E.***KG 100217 *****AMENEDED TIMELINE****092617****** 12:23 PM THE CONTROL CENTER RECEIVED ALARMS FOR A SEAL FAIL ON PUMPING UNITS #3 AND #4 ALONG WITH A HIGH SUMP ALARM, WHICH WAS IMMEDIATELY FOLLOWED BY A HIGH-HIGH SUMP ALARM. FIELD TECHNICIAN WAS DISPATCHED TO INVESTIGATE , THE CONTROL CENTER OPERATOR SHUT DOWN AND ISOLATED THE STATION. AT APPROXIMATELY 1:20 PM A SENIOR OPERATIONS MANAGER ARRIVED ON SITE, VERIFIED THE RELEASE HAD BEEN ISOLATED AND CONTAINED. INVESTIGATION INTO THE SOURCE COMMENCED. AT APPROXIMATELY 3:46 PM, THE RELEASE, CAUSE, AND APPROXIMATE AMOUNT OF RELEASE HAD BEEN DETERMINED TO BE JURISDICTIONAL PIPING REGULATED BY THE NMPRC. THE DRAIN LINE IS FACILITY PIPING; HOWEVER, IT IS TIED INTO A JURISDICTIONAL COMPONENT (PIG TRAP). CODY ALLEN WAS THEN NOTIFIED, CONFIRMING THIS WAS A REPORTABLE RELEASE UNDER 49 CFR 195.50/195.52 WITH THE ASSOCIATED DETAILS. NRC WAS NOTIFIED AT APPROXIMATELY 4:37 PM WITH THE NMPRC NOTIFICATION DIRECTLY FOLLOWING. 090817 AT APPROXIMATELY 12:23 PM MST, THE HEP CONTROL CENTER RECEIVED A HIGH SUMP ALARM, FOLLOWED BY A HIGH-HIGH ALARM ON THE SUMP AND A SEAL FAIL ON THE PUMPING UNITS 3 & 4. THE CONTROLLER SHUT DOWN THE PUMP STATION, BLOCKED IN THE REMOTE VALVES, AND DISPATCHED A FIELD TECHNICIAN TO THE SITE. AT APPROXIMATELY 4:46 PM MST, A SENIOR OPERATIONS MANAGER ARRIVED ON SITE TO CONFIRM THE INCIDENT AND DETERMINE THE JURISDICTION OF RELEASE. IT WAS DETERMINED THROUGH FURTHER INVESTIGATION THAT THE PIPING WHERE THE RELEASE OCCURRED WAS INTRASTATE JURISDICTIONAL PIPING COVERED UNDER 49 CFR 195.50 AND REPORTABLE TO NEW MEXICO PUBLIC REGULATION COMMISSION (NMPRC). NRC AND NMPRC WERE THEN PROMPTLY NOTIFIED VIA TELEPHONE UNDER REPORT # 1186652 . APPROXIMATELY 16.5 BBLS OF CRUDE OIL WAS RELEASED, 3 BBLS WERE IMMEDIATELY RECOVERED. THE LOCATION IS ON BUREAU OF LAND MANAGEMENT (BLM) LAND, CONTAMINATED SOIL HAS BEEN PLACED ON PLASTIC AND COMPLETE REMEDIATION WILL BE CONDUCTED ONCE THE PLAN IS REVIEWED AND APPROVED BY THE BLM. THE CAUSE OF THE RELEASE WAS DUE TO OPERATOR ERROR. UPON INVESTIGATION, IT WAS DETERMINED THAT A TECHNICIAN LEFT THE VALVE TO THE SUMP DRAIN LINE OPEN AFTER RECEIVING A CLEANING PIG FROM THE PIG TRAP, SUBSEQUENTLY CAUSING THE SUMP TO OVERFILL.