MEDALLION OPERATING COMPANY, LLC

Incident Narrative

UPDATE 1/2/2018: CORRECTED TO INDICATE INTRASTATE PIPELINE. ADDED DESCRIPTION OF ACTIONS TAKE TO PREVENT FUTURE RECURRENCE. NOTE: THIS INCIDENT WAS INITIALLY REPORTED ON REPORT # 20170019 - 22954 AND IS BEING REPORTED AS A SEPARATE INCIDENT AT THE REQUEST OF THE ADMINISTRATION. AT APPROXIMATELY 12:30 PM DECEMBER 19, 2016, THERE WERE TWO SEPARATE SPILLS AT MEDALLION OPERATING COMPANY, LLC'S SANTA RITA FACILITY. A RELEASE FROM A 4"" BALL VALVE WAS DISCOVERED BY A CONTRACT OPERATOR AFTER REPAIRING THE ANOTHER LEAK AT THE SAME FACILITY CAUSED BY FREEZING TEMPERATURES. THE 4"" BALL VALVE IS ON A RISER FOR A FUTURE TRUCK OFF-LOADING FACILITY AND WAS TERMINATED WITH A BLIND FLANGE. THE VALVE WAS DISCOVERED IN A CLOSED POSITION BUT EXHIBITING A CRACK THAT WAS LEAKING AND RESULTING IN APPROX.. 5 BBLS OF CRUDE OIL TO BE RELEASED. WHEN THE FLANGE WAS REMOVED WATER WAS NOTED BETWEEN THE VALVE BODY AND FLANGE. A REVIEW OF PRESSURE DATA INDICATED THAT NEITHER SECTION OF PIPE EXCEEDED MOP DURING THE TIME AROUND THE INCIDENTS. AMBIENT AIR TEMPERATURES ON THAT DATE REACHED BELOW FREEZING IN THE MORNING HOURS (LOW NEAR 20 F). IT IS BELIEVED THAT COLD AMBIENT TEMPERATURES CAUSED RESIDUAL HYDROTEST WATER TRAPPED BEHIND THE VALVE TO FREEZE, CRACKING THE 4"" VALVE IN BOTH INSTANCES THE LEAKS WHERE STOPPED UPON INITIAL DISCOVERY. THE SPILLS REMAINED ON MEDALLION'S SITE AND NO INJURIES, EXPLOSIONS OR FIRES OCCURRED. THE 4"" VALVE WAS REMOVED AND A BLIND FLANGE INSTALLED IN ITS PLACE. REMEDIAL ACTIVITIES TO THE AFFECTED SOIL HAVE BEEN COMPLETED AND CONFIRMATORY SAMPLES HAVE BEEN SUBMITTED TO A LABORATORY FOR ANALYSIS TO DETERMINE REQUIRED CLOSURE LEVELS HAVE BEEN MET. SOIL SAMPLES WERE COLLECTED MARCH 7, 2017 AND TAKEN FOR ANALYSIS. THE RESULTS INDICATED CONTAMINANT LEVELS WERE BELOW LOCAL STANDARDS AND THE REMEDIATION IS NOW CONSIDERED COMPLETE. MEDALLION WILL WORK ALL VALVES OPEN AND CLOSED AFTER HYDROTESTING WITH WATER AND FILLING WITH CRUDE OIL TO ENSURE WATER IS COMPLETELY FLUSHED FROM THE SYSTEM. DISPLACEMENT OF THE WATER WILL PREVENT FUTURE OCCURRENCES.