PLAINS PIPELINE, L.P.

Incident Narrative

APPROXIMATELY 2.38 BBLS OF CRUDE OIL WERE RELEASED AS A RESULT OF A PINHOLE LEAK, LOCATED IN THE 6 O'CLOCK POSITION, ON AN INFREQUENTLY USED, SUBSURFACE BYPASS LINE, WHICH MAY HAVE BEEN CAUSED BY CORROSION INITIATING FROM THE PIPE INTERIOR. PLAINS OPERATOR DISCOVERED THE LEAK DURING A ROUTINE FACILITY INSPECTION, ONGOING PIPELINE MOVEMENTS WERE SHUT DOWN UNTIL FURTHER INVESTIGATION AS TO THE SOURCE WAS DETERMINED AND THE SPILL WAS CLEANED UP ENTIRELY. THE SECTION OF PIPE FROM WHICH THE LEAK OCCURRED WAS TAKEN OUT OF SERVICE AND THE LINE WAS RESTARTED. THIS SEGMENT IS BEING SENT TO THE LAB TO UNDERGO METALLURGICAL ANALYSIS, IN ORDER TO VERIFY FIELD FINDINGS. A SUPPLEMENTAL REPORT WILL BE SUBMITTED ONCE THE RESULTS ARE RECEIVED. SUPPLEMENTAL NARRATIVE: UPON RECEIPT OF THE METALLURGICAL ANALYSIS, IT WAS CONCLUDED THAT THE LEAK WAS THE RESULT OF THE PRESENCE OF WET CO2 IN THE PIPE, A BYPRODUCT OF THE IDLE CRUDE OIL. THE INTERNAL SURFACE WAS COVERED WITH REDDISH BROWN DEPOSITS, SHOWN TO BE IRON OXIDE. THIS SECTION OF PIPE WAS DEEMED UNNECESSARY FOR OPERATION AND REMOVED. THE YEAR THE ITEM WAS MANUFACTURED AND INSTALLED WAS INCORRECTLY REPORTED AND HAS BEEN UPDATED.