HOLLY ENERGY PARTNERS - OPERATING, L.P.

Incident Narrative

ON WEDNESDAY, APRIL 20, 2016, AT APPROXIMATELY 16:37 CST A HOLLY ENERGY PARTNER (HEP) TECHNICIAN ARRIVED AT WOOD STATION TO CONDUCT A ROUTINE CHECK OF THE FACILITY AND DISCOVERED A RELEASE OF CRUDE OIL FROM THE MIXER AT TANK 5302. THE HEP TECHNICIAN OBSERVED CRUDE OIL LEAKING FROM THE TANK MIXER AND SHUT OFF THE POWER TO THE MIXER STOPPING THE RELEASE. ALL RELEASED PRODUCT WAS CONTAINED WITHIN THE TANK CONTAINMENT BERMS, WHICH ARE LOCATED WITHIN THE BOUNDARIES OF THE WOOD STATION PROPERTY. THE INCIDENT WAS REPORTED BY THE HEP TECHNICIAN TO THE AREA OPERATIONS SUPERVISOR WHO THEN REPORTED IT TO THE HEP CONTROL CENTER; THE CONTROL CENTER THEN NOTIFIED THE HEP REGULATORY DEPARTMENT. CREWS WERE DISPATCHED TO RECOVER THE RELEASED PRODUCT AND INITIATE CLEAN-UP ACTIONS OF THE SOIL WITHIN THE CONFINES OF THE CONTAINMENT BERMS. AT THE TIME OF THE INCIDENT, TANK 5302 WAS OUT-OF-SERVICE AND WAS DISCONNECTED FROM THE SHIPPING AND RECEIVING PIPELINES. HOWEVER, THE TANK MIXER REMAINED OPERATIONAL TO KEEP THE CRUDE OIL IN THE TANK AGITATED AND WATER/SOLIDS SUSPENDED UNTIL THE PRODUCT COULD BE REMOVED AND THE TANK VAPOR FREED. IN ADDITION, NOTIFICATION OF THE INCIDENT WAS REPORTED TO THE NATIONAL RESPONSE CENTER AND THE TEXAS RAILROAD COMMISSION (TX-RRC); A COPY OF THIS REPORT WILL BE SUBMITTED TO TX-RRC. THE INCIDENT INVESTIGATION FINDINGS DETERMINED THAT THE ROOT CAUSE IS EQUIPMENT FAILURE - THE LEAK WAS ON THE SHAFT SEAL INSIDE THE BELT HOUSING, THE HOUSING FILLED WITH OIL AND STARTED OVERFILLING ONTO THE GROUND. POST INCIDENT CORRECTIVE ACTIONS: TANK 5302 WAS EMPTIED AND THE TANK MIXER HAS BEEN LOCKED OUT/TAGGED OUT. AN ENVIRONMENTAL ACTION PLAN HAS BEEN SUBMITTED TO THE TEXAS RAILROAD COMMISSION, OIL & GAS DIVISION. SUPPLEMENTAL REPORT 05/18/2016: REVISED PART D, QUESTION 6, TO ""YES"".