HOLLY ENERGY PARTNERS - OPERATING, L.P.

Incident Narrative

AN HEP FIELD TECHNICIAN WAS CONDUCTING ROUTINE STATION CHECKS WHEN HE ARRIVED AT WOOD STATION HE DISCOVERED FREE PRODUCT IN A BELL HOLE. THE CRUDE OIL WAS FULLY CONTAINED WITHIN THE BELL HOLE AND WITHIN THE CONFINES OF THE STATION. THE HEP FIELD TECHNICIAN DISPATCHED CLEAN-UP CREWS AND THEY WERE ABLE TO RECOVER APPROXIMATELY 10 BBLS FROM THE BELL HOLE. THE CAUSE OF THE RELEASE WAS PIPE FAILURE DUE TO INTERNAL CORROSION. THE 6"" DEAD LEG PIPE WAS PERMANENTLY REMOVED FROM THE GROUND AND THE REMEDIAL ACTION PLAN INCLUDES REMOVAL AND DISPOSAL OF CONTAMINATED SOIL, BACKFILLING AND COLLECTING CONFIRMATORY SAMPLES. AT THE TIME OF THE INCIDENT THE STATION PIPING WAS IDLE AS THERE WAS NO PRODUCT BEING TRANSPORTED INTO THE TANK. IN ADDITION, AFTER FURTHER REVIEW OF HEP PHMSA ANNUAL REPORTS AND RELATED INTERNAL RECORDS IT WAS CONFIRMED THAT THE TANK AND ASSOCIATED PIPING WAS CLASSIFIED AS NON-REGULATED BASED ON 49 CFR 195 RULES. THE TELEPHONIC REPORT WAS MADE TO THE NRC AS A PRECAUTIONARY MEASURE IN ORDER TO ENSURE COMPLIANCE WITH REPORTING REQUIREMENTS UNTIL A CONFIRMATION OF JURISDICTION WAS OBTAINED. FINALLY, IN ORDER TO SUBMIT THIS REPORT WE WERE REQUIRED TO ANSWER QUESTION 5.F IN PART E PERTAINING TO THE FUNCTION OF THE PIPELINE SYSTEM AND AS PREVIOUSLY STATED THIS SYSTEM WAS CLASSIFIED AS NON-REGULATED SO ALTHOUGH WE SELECTED AN ANSWER THAT STATES ""REGULATED GATHERING"" IN ORDER TO COMPLETE THIS REPORT PLEASE MAKE NOTE OF THE UNIQUE CIRCUMSTANCE CONCERNING THIS INCIDENT.