KINDER MORGAN LIQUID TERMINALS, LLC

Incident Narrative

TERMINAL EMPLOYEE REPORTED STAINS ON THE SOIL UNDER SOME FITTINGS ON TANK 150-1 AT PASADENA. ALSO REPORTED WET SPOTS ON THE TANK. EHS EMPLOYEES WENT TO ASSESS THE STANINS AND ESTIMATED LESS THAN 1 GALLON RELEASED ON THE SOIL. TANK WAS NOT OPERATIONAL AT THE TIME, HOWEVER, OPERATIONS STARTED THE PROCESS OF EMPTYING THE TANK SO IT COULD BE CLEANED FOR THE LINING TO BE REMOVED TO DETERMINE THE CAUSE OF THE LEAK. THE TANK HAS BEEN EMPTIED AND CLEANED, AND THE LINER IS BEING REMOVED, BUT HAS BEEN DELAYED DUE TO BAD WEATHER IN THE HOUSTON AREA. A SUPPLEMENTAL/FINAL REPORT WILL BE FILED AS SOON AS THE ROOT CAUSE HAS BEEN IDENTIFIED. 08/18/2014 FOLLOWING THE TANK BOTTOM FAILURE OF KINDER MORGAN TANK 150-1 IN PASADENA, TEXAS, THREE SEPARATE CRACKS IN THE WELDS OR HEAT AFFECTED ZONES AT THE SHELL TO BOTTOM WELDS WERE IDENTIFIED DURING INSPECTION. CUT OUTS OF ALL THREE IDENTIFIED FAILURES WERE REMOVED FROM TANK 150-1 FOR ANALYSIS. THOSE THREE SAMPLES WERE PROVIDED TOCONTRACTOR LAB FOR A COMPLETE METALLURGICAL ANALYSIS. FOLLOWING ANALYSIS, THE LAB IDENTIFIED TWO PRIMARY REASONS FOR THE FAILURES: 1. THE SHELL TO BOTTOM WELDS IN ALL AREAS WERE OVERSIZED, CREATING STRESS RISERS. 2. THE DESIGN OF THE LAP WELDED JOINT ALLOWED FOR TANK BOTTOM LAP WELDS TO PROTRUDE BENEATH THE TANK SHELL (ALLOWABLE PER API 650), CREATED SEVERAL CONDITIONS THAT INCREASE THE LIKELIHOOD OF FAILURE.