PLAINS PIPELINE, L.P.

Incident Narrative

CRUDE OIL WAS RELEASED FROM A 24-INCH PIPELINE, LOCATED ALONG HIGHWAY 101 IN SANTA BARBARA COUNTY, CALIFORNIA. THE RELEASED CRUDE REACHED A CULVERT WHICH LEADS TO THE PACIFIC OCEAN AND, AS A RESULT, IMPACTED THE SHORELINE AND OCEAN WATER. THE CAUSE OF THE RELEASE IS CURRENTLY UNDER INVESTIGATION. THE PIPE HAS BEEN EXCAVATED. THE AFFECTED PORTION OF PIPE WAS SECURELY PACKAGED TO PRESERVE ITS CONDITION AND HAS BEEN TRANSPORTED TO A SECURE, INDEPENDENT FACILITY FOR AN INDEPENDENT THIRD-PARTY ANALYSIS AND INVESTIGATION. A SUPPLEMENTAL REPORT WILL BE SUBMITTED UPON RECEIPT OF THE THIRD PARTY, METALLURGICAL ANALYSIS. IN THE MEANTIME, PLAINS PERSONNEL ARE ACTIVELY ENGAGED IN CLEANUP AND ENVIRONMENTAL REMEDIATION EFFORTS. PART A. QUESTION 7. - 14:56 IS THE TIME OPERATOR NOTIFIED THE NATIONAL RESPONSE CENTER (NRC). THE NRC WAS FIRST NOTIFIED AT 12:43 BY AN UNRELATED THIRD PARTY. PART A. QUESTION 9. - ANSWER IS A BEST-ESTIMATE AS OF 6/17/2015. PART A. QUESTION 11.- RESPONSE REFLECTS CURRENT ESTIMATE AS OF 6/17/2015. THE VOLUME OF RECOVERED COMMODITY WILL BE REVISED UPWARD IN THE SUPPLEMENTAL REPORT AS MORE INFORMATION BECOMES AVAILABLE. PART A. QUESTION 17. -THE NUMBER OF PEOPLE EVACUATED FROM LOCAL STATE PARK CAMPSITES IS CURRENTLY UNDETERMINED AS NO ESTIMATES ARE INCLUDED IN THE INITIAL FIRST RESPONDER REPORTS WE HAVE RECEIVED. WE ARE INVESTIGATING THIS FURTHER AND WILL REVISE THE SUPPLEMENTAL REPORT AS MORE INFORMATION BECOMES AVAILABLE. PART D. QUESTION 8. - ANSWER REFLECTS ESTIMATED COSTS INCURRED THROUGH 6/16/2015. SUPPLEMENTAL NARRATIVES: PART A, NUMBER 11 AND PART D, NUMBER 8 HAVE ALSO BEEN UPDATED TO REFLECT NEW INFORMATION AS OF 7/10/2015. AS OF 8/4/15 THE CURRENT ESTIMATED RELEASE VOLUME REMAINS APPROX. 2,400 BBLS. PRELIMINARY DATA FROM THE PURGE ACTIVITY ESTIMATES THE RELEASE COULD BE POTENTIALLY 3,400 BBLS. WHILE PLAINS BELIEVES THE VOLUME ESTIMATE LISTED IN PART A, QUESTION 9 BEST REPRESENTS THE POTENTIAL DISCHARGE VOLUME, WE ARE WORKING WITH AN OUTSIDE EXPERT TO RECONCILE THE DIFFERENCES AND WILL PROVIDE ADDITIONAL UPDATES AS APPROPRIATE. AS OF 11/24/2015, BASED ON THE WORK PERFORMED BY OUR INDEPENDENT THIRD PARTY CONSULTANT (I.E. THE 'OUTSIDE EXPERT' MENTIONED ABOVE), OUR BEST ESTIMATE OF THE SPILL VOLUME IS 2,934 BARRELS. THE RESULTS OF THE METALLURGICAL ANALYSIS OF THE PIPELINE SEGMENT INDICATE THAT THE FAILURE OCCURRED AT AN AREA OF WALL THINNING FROM EXTERNAL CORROSION THAT ULTIMATELY FAILED BY DUCTILE OVERLOAD UNDER THE IMPOSED OPERATING PRESSURE. THE MORPHOLOGY OF THE EXTERNAL CORROSION OBSERVED ON THE PIPE SECTION IS CONSISTENT WITH CORROSION UNDER INSULATION FACILITATED BY WET-DRY CYCLING. LINE 901 REMAINS SHUT DOWN AND SUBJECT TO CORRECTIVE ACTION ORDER CPF NO. 5-2015-5011H AND AMENDMENTS. UPDATED COSTS FOR THE REPAIR AND RESTART OF THIS LINE REMAIN UNKNOWN AT THIS TIME. AS OF MARCH 8, 2017, PART D, NUMBER 5B HAS BEEN UPDATED FROM 500 BBLS TO 598 BBLS. FOLLOWING A DETAILED INVESTIGATION INTO THE VOLUME OF OIL RELEASED, EXPONENT, AN INDEPENDENT CONSULTING AND ENGINEERING FIRM RETAINED BY PLAINS, HAS CALCULATED THAT 598 BARRELS OF OIL FROM THIS RELEASE REACHED THE PACIFIC OCEAN AND ADJOINING SHORELINES. A SUPPLEMENTAL REPORT WILL BE FILED AS NECESSARY SHOULD ANY REPORTED INFORMATION MATERIALLY CHANGE.