KOCH PIPELINE COMPANY, L.P.

Incident Narrative

ON SEPTEMBER 25, 2014 AT 9:15 A.M., KOCH PIPELINE COMPANY (""KPL"") LOCATED A SMALL RELEASE ON THE MINNESOTA PIPE LINE 2 (""MPL 2"") LOOP 7 PIPELINE SEGMENT FROM ZIMMERMAN TO HUGO, AND MORE SPECIFICALLY LOCATED NEAR MILEPOST 218 DURING A HYDROSTATIC TEST. AT THE TIME OF THE HYDROSTATIC TEST, THE LINE WAS NOT CONNECTED TO THE MAIN PIPELINE AND WAS BEING MONITORED LOCALLY AND NOT BY THE PIPELINE CONTROL CENTER. THE LOCATION OF THE RELEASE WAS DETERMINED TO BE WITHIN A JURISDICTIONAL WETLAND, ALTHOUGH AT THE TIME OF THE RELEASE THE WETLAND WAS DRY AND NO SURFACE WATERS WERE IMPACTED. DUE TO THIS AREA BEING A JURISDICTIONAL WETLAND, IT IS CONSIDERED A RELEASE TO SURFACE WATER, BUT SINCE THE WETLAND WAS DRY AT THE TIME, THE ONLY KNOWN IMPACT WAS TO SOIL. A METALLURGICAL INVESTIGATION OF THE PIPE CONCLUDED THAT THE CAUSE OF THE TEST FAILURE (NEAR MP218) WAS A MANUFACTURING DEFECT, A THROUGH WALL LACK OF FUSION IN THE LONGITUDINAL SEAM. THE FAILURE OCCURRED DURING THE SPIKE TEST, AT PRESSURE HIGHER THAN THE ORIGINAL PIPE MILL TEST PRESSURE, WITH NO INDICATION OF FATIGUE GROWTH. APPROXIMATELY 2,000 GALLONS OF HYDROSTATIC TEST WATER WITH A SMALL AMOUNT OF RESIDUAL CRUDE OIL WERE RELEASED. THROUGH THIRD PARTY SAMPLING, IT WAS ESTIMATED THAT 88-165 GALLONS OF CRUDE OIL WERE RELEASED ALONG WITH THE HYDROSTATIC TEST WATER. UPON DISCOVERY, THE PIPELINE WAS IMMEDIATELY CLAMPED TO STOP LEAKAGE, CLEANUP WAS INITIATED, AND NECESSARY REPAIRS WERE UNDERTAKEN. ALL CONTAMINATED SOIL WAS REMOVED OFF SITE TO BE TREATED AND CLEAN BACKFILL SOIL WAS REPLACED IN THE EXCAVATION. THE TOTAL AMOUNT OF SOIL REMEDIATED WAS APPROXIMATELY 915 TONS.