MAGELLAN AMMONIA PIPELINE, L.P.

Incident Narrative

THIS RELEASE WAS FOUND THROUGH A HYDROSTATIC PRESSURE TEST. THE REPORTED QUANTITY RELEASED WAS DETERMINED BY SOIL TEST. FOLLOWING THE AUGUST 14, 2014 RELEASE AT MP 62.5, MAGELLAN MADE THE DETERMINATION TO COMPLETE A HYDROSTATIC PRESSURE TEST (INCLUDING A SPIKE TEST) OF THIS PIPELINE, DESIGNATED AS THE ENID LATERAL, BEFORE RETURNING IT TO SERVICE. WHILE ON TEST, IT WAS DETERMINED THAT THE LINE WAS LOSING PRESSURE WHICH INDICATED A POTENTIAL PINHOLE SOMEWHERE ELSE ON THE PIPELINE. FIELD INVESTIGATION IDENTIFIED A PINHOLE IN A GIRTH WELD AT MP 68.42. ONCE THE LINE WAS EXCAVATED, IT WAS DETERMINED THAT THIS PINHOLE IN THE GIRTH WELD WAS LIKELY SEEPING PRIOR TO THE TEST. THE LOCATION OF THE EXCAVATION IS IN A ROAD CROSSING IDENTIFIED AS SE 50 RD. THE HYDROSTATIC TEST WAS SUCCESSFULLY COMPLETED, AFTER WHICH, THE SPECIMEN CONTAINING THE LEAK FEATURE WAS CUT OUT AND REPLACED WITH A PIECE OF NEW, PRETESTED PIPE. APPROXIMATELY 500 CUBIC YARDS OF SOIL WILL ULTIMATELY BE REMEDIATED. NOTE, THE EXCEEDANCE OF 110% OF MOP MENTIONED IN PART E, #1 AND #3 OCCURRED DURING A HYDROSTATIC TEST WITH WATER AND DID NOT OCCUR DURING PIPELINE OPERATIONS. NOTE, PHMSA INSTRUCTIONS (REV 12-2015) FOR FORM PHMSA F 7000-1 (REV 7-2014) ACCIDENT REPORT - HAZARDOUS LIQUID PIPELINE SYSTEMS, OMB NO. 2137-0047 EXPIRES: 12/31/2016, PAGE 5 OF 13 PROVIDES: ""IN CASES WHERE AN ACCIDENT RESULTS IN LONG-TERM REMEDIATION, AN OPERATOR MAY CEASE FILING SUPPLEMENTAL REPORTS IN THE FOLLOWING SITUATIONS AND, INSTEAD, FILE A FINAL REPORT EVEN WHEN ADDITIONAL REMEDIATION COSTS AND RECOVERY OF RELEASED COMMODITY ARE STILL OCCURRING: ""2. WHEN THE ESTIMATED FINAL COSTS AND VOLUME OF COMMODITY RECOVERED CAN BE PREDICTED WITH A REASONABLE DEGREE OF CERTAINTY."" BASED ON THAT GUIDANCE, THIS SUPPLEMENTAL-FINAL REPORT CONTAINS ESTIMATES IN PART A, #11 OF THE TOTAL VOLUME OF PRODUCT EXPECTED TO BE ULTIMATELY RECOVERED, ALONG WITH ANTICIPATED TOTAL COSTS IN PART D, #8, IN COMPLIANCE WITH THE PROVISIONS OF ITEM #2 REFERENCED ABOVE. FURTHER, IT IS ANTICIPATED THAT RECOVERY, WHICH IS SCHEDULED TO CONTINUE THROUGH 2018, WILL SOON BE TRANSFERRED UNDER THE AUSPICES OF THE KANSAS DEPARTMENT OF HEALTH & ENVIRONMENT (KDHE) VOLUNTARY CLEANUP PROGRAM WHICH OVERSEES REMEDIATION PROGRAMS OF THE TYPE COVERED IN THIS REPORT SECOND SUPPLEMENTAL-FINAL REPORT WAS FILED ON AUGUST 12, 2016 TO CORRECT TYPOGRAPHICAL ERRORS IN PART H.