BUCKEYE PARTNERS, LP

Incident Narrative

AT 10:02 AM ON MARCH 17, 2017, AN ESTIMATED 2 GALLONS OF CRUDE OIL WAS WITNESSED AROUND THE TANK CHIME OF TANK 80-01 AT THE BUCKEYE TEXAS HUB. THERE WERE NO INJURIES, FATALITIES, OR FIRES. DAMAGES MAY EXCEED $50,000 DUE TO THE COST OF REPAIRS. THERE WAS NO IMPACT TO EXTERNAL SOIL OR WATERWAYS. ALL INTERNAL AND EXTERNAL NOTIFICATIONS WERE PERFORMED. THIS INCIDENT WAS REPORTED TO THE RAILROAD COMMISSION OF TEXAS ON MARCH 17, 2017 AT 11:33 AND ASSIGNED INCIDENT ID: 1548. THE TANK HAS BEEN TEMPORARILY REMOVED FROM SERVICE AND AN API 653 INSPECTION HAS BEEN COMPLETED. INITIAL FINDINGS HAVE CONCLUDED THAT THE TOP-SIDE OF THE TANK BOTTOM HAS EXPERIENCED CORROSION AND PRODUCT HAS REACHED THE INTERSTITIAL SPACE BETWEEN THE UNDERLYING HDPE LINER AND THE TANK BOTTOM. IT IS ESTIMATED THAT 263 BARRELS OF CRUDE PRODUCT COULD BE CONTAINED WITHIN THE INTERSTITIAL SPACE. UPDATE: JULY 31, 2017 DAMAGES HAVE EXCEEDED $1.8 MILLION DUE TO THE COST OF REPAIRS AND REMEDIATION. LONG TERM REMEDIATION HAS BEEN INITIATED FOR THE UNDERLYING GROUND WATER. IT HAS BEEN DETERMINED THAT THE TOP-SIDE OF THE TANK BOTTOM EXPERIENCED CORROSION AND PRODUCT BREACHED THE UNDERLYING HDPE LINER. IT IS ESTIMATED THAT APPROXIMATELY 390 BARRELS OF CRUDE PRODUCT WAS RELEASED AS A RESULT OF THIS FAILURE. APPROXIMATELY 100 BARRELS HAS BEEN SUCCESSFULLY RECOVERED. AN ESTIMATED 290 BARRELS ARE CONFINED WITHIN THE SOIL AND GROUND WATER. REMEDIATION WELLS HAVE BEEN IMPLEMENTED AND A MULTI-PHASE EXTRACTION SYSTEM IS BEING INSTALLED TO REMOVE ADDITIONAL HYDROCARBONS. THE TANK IS EXPECTED TO BE BACK IN SERVICE ON SEPTEMBER 30, 2017. A MORE DEFINITIVE EXPLANATION ON THE TYPE OF CORROSION EXPERIENCED BY THE TANK BOTTOM WILL BE PROVIDED UPON THE COMPLETION OF THE METALLURGICAL ANALYSIS WHICH IS CURRENTLY UNDER WAY. UPDATE: JANUARY 29, 2018 THE TOTAL ESTIMATED PROPERTY DAMAGE IS APPROXIMATELY $3.3 MILLION. TANK 80-01 WAS SUCCESSFULLY PUT BACK INTO SERVICE ON NOVEMBER 14, 2017 AFTER REPAIRS TO THE TANK FOUNDATION AND THE INSTALLATION OF GROUND MONITORING WELLS. TO DATE, 320 BARRELS OF THE ESTIMATED 390 BARRELS THAT WAS RELEASED HAS BEEN RECOVERED. THE GROUND MONITORING WELLS WILL BE USED TO FACILITATE THE ONGOING REMEDIATION PROCESS. IT WAS DETERMINED THROUGH METALLURGICAL ANALYSIS THAT INTERNAL CORROSION TO THE TOP-SIDE OF THE TANK BOTTOM WAS CAUSED BY THE CORROSIVE CRUDE OIL PRODUCT THAT WAS BEING STORED IN TANK 80-01. AS A PREVENTATIVE MEASURE, BUCKEYE HAS IMPLEMENTED AN INTERNAL LINING TO TANK 80-01.