MEDALLION OPERATING COMPANY, LLC

Incident Narrative

THE INCIDENT OCCURRED ON JULY 27, 2016 AT ENTERPRISE'S MIDLAND FACILITY, AT THE FLANGE WHERE MEDALLION'S 12' DELIVERY LINE IS CONNECTED AND ISOLATED WITH AN ISOLATION FLANGE KIT. THE MAXIMUM PRESSURE RATING OF MEDALLION'S PIPE AND THE ENTERPRISE METER SKID IS 1,440 PSI. AT THE TIME OF THE INCIDENT, THERE WERE NO DELIVERIES BEING MADE, THE PIPELINE WAS IN-SERVICE, BUT NOT DELIVERING TO ENTERPRISE. CONSTRUCTION WAS ON-GOING AT THE MEDALLION MIDLAND JUNCTION WHICH IS LOCATED ABOUT A MILE AWAY FROM THE ENTERPRISE TERMINAL. THE MIDLAND JUNCTION WAS OPERATING ON TEMPORARY POWER AND AIR WHEN A VALVE CLOSED AT THE MEDALLION MIDLAND JUNCTION THAT FORCED OIL TOWARDS THE ENTERPRISE FACILITY. ON JULY 27, 2016 AT APPROXIMATELY 2300 ENTERPRISE CONTROL ROOM RECEIVED AN ALARM AND SAW THE INLET LINE PRESSURE HAD REACH 758 PSI. THIS EXCEEDED THE PRESSURE SET BY ENTERPRISE FOR DELIVERY OF OIL TO THEIR SITE. ENTERPRISE EMPLOYEE WENT TO CLOSE THE INLET VALVE AND DISCOVERED A LEAK AT THE TIE-IN FLANGE (THE LEAK WAS A FINE MIST SPRAY). THE ENTERPRISE EMPLOYEE IMMEDIATELY NOTIFIED A MEDALLION CONTROL ROOM OPERATOR WHO OPENED GATHERING FLOW INTO MEDALLIONS MARTIN STATION TANK. AT 2320 THE CLOSED VALVE WAS RE-OPENED AND PRESSURE WAS RELIEVED TO THE MAIN LINE, WHICH STOPPED THE RELEASE OF CRUDE OIL AT THE ENTERPRISE STATION. ONCE THE FLOW WAS SHUT DOWN AND THE RELEASE STOPPED NOTIFICATION WAS RECEIVED BY MEDALLION'S REGULATORY AND COMPLIANCE MANAGER AT 09:00 ON JULY 28, 2016. AFTER THE INITIAL RESPONSE TO STOP THE RELEASE, MEDALLION IDENTIFIED THE SOURCE OF THE RELEASE TO BE A CRACK IN THE ISOLATION FLANGE KIT. AN INVESTIGATION DETERMINED THAT THE ISOLATION FLANGE KIT FAILED DUE TO IMPROPER TORQUE SEQUENCE RESULTING IN A SPRAY OF OIL BEING DISCHARGED ON THE GROUND AND RELEASING A TOTAL OF 1 BBL. OF OIL ONTO THE GROUND, IMPACTING APPROXIMATELY 45 CUBIC FEET OF SOIL. IT IS ESTIMATED THAT 60% OF THE OIL RELEASED, LANDED ON THE ENTERPRISE METER SKID. MEDALLION CREWS ARRIVED AT 0200 AND WORKED TO ABSORB THE CRUDE OIL WITH ABSORBENT PADS UNTIL 0400. REPAIRS AND CLEAN-UP TO COMMENCE AROUND 1000 THE NEXT MORNING. THE FACILITY REMAINED IN OPERATION DURING INITIAL RESPONSE AND CLEAN-UP ACTIVITIES. THE DELIVERY LINE WAS ISOLATED UTILIZING THE MEDALLION BLOCK VALVE JUST UPSTREAM OF THE METER SKID UNTIL THE ISOLATION FLANGE KIT COULD BE REPLACED. THE DAMAGED ISOLATION FLANGE KIT WAS REPLACED WITH NEW, THE PROPER TORQUE SEQUENCE WAS UTILIZED DURING BOLT-UP, AND THE LINE WAS PUT BACK IN SERVICE AROUND 1300 ON JULY 28, 2016. CRUDE OIL AFFECTED SOIL WAS REMOVED FROM THE SITE AND SENT FOR PROPER DISPOSAL. SOIL SAMPLES TAKEN AUGUST 8, 2016 INDICATED THE AFFECTED AREA HAD BEEN REMEDIATED TO RAILROAD COMMISSION OF TEXAS CLEAN-UP STANDARDS AND THE SITE HAS BEEN RELEASED FOR NORMAL OPERATIONS.