MAGELLAN PIPELINE COMPANY, LP

Incident Narrative

ON DECEMBER 21, 2015, CRUDE OIL SURFACED FROM CRACKS IN THE STREET AT FM 1765 AND 21ST STREET IN TEXAS CITY. THE TEXAS CITY FIRE DEPARTMENT AND PUBLIC WORKS DEPARTMENT ORIGINALLY RESPONDED TO THE RELEASE AND ESTABLISHED INCIDENT COMMAND. AN INVESTIGATION EVENT WAS PERFORMED AND IT WAS DETERMINED THE SOURCE OF THE PRODUCT ORIGINATED FROM AN ABANDONED 4"" CRUDE LINE UNDER THE ROAD. MAGELLAN RECEIVED THE ABANDONED 4' LINE IN A PURCHASE AGREEMENT IN 2010 AND BELIEVED THE LINE TO BE FREE OF PRODUCT. THIS LINE IS BELIEVED TO BE AN OLD GATHERING LINE FROM LAMAR TO THE REFINERY IN TEXAS CITY. THE LEAK SOURCE WAS DISCOVERED UNDER 21ST STREET JUST OUTSIDE OF A ROAD CASING WHICH DID NOT EXTEND THE FULL ROAD WIDTH. THE LINE WAS PURGED OF ANY RESIDUAL PRODUCT, THE LINE SEGMENT BETWEEN 21ST AND 20TH STREET WAS CUT, CAPPED AND FILLED WITH GROUT. THE ROAD SURFACE WAS REMOVED AND SOIL EXCAVATED PRIOR TO RECONSTRUCTING THE ROAD. NO MOP WAS ESTABLISHED FOR THIS LINE SEGMENT SINCE IT HAS BEEN OUT OF SERVICE SINCE OWNERSHIP. THE LINE IS BELIEVED TO HAVE LEAKED WITH NO TO MINIMAL PRESSURE ON THE LINE SUPPLEMENTAL-FINAL REPORT FILED MARCH 24 TO UPDATE ADDITIONAL COSTS