JP ENERGY MARKETING, LLC

Incident Narrative

ON 3/19/14 BETWEEN 1600-1645, AN AST WAS OVERFILLED WHICH RESULTED IN A SPILL OF APPROXIMATELY 35 BARRELS OF CRUDE OIL, THE SPILL WAS SUCCESSFULLY CONTAINED IN SECONDARY CONTAINMENT THAT WAS EQUIPPED WITH A LINER. THIS TANK RECEIVES FLOW FROM BOTH THE PIPELINE AND TRUCKS WHILE SIMULTANEOUSLY DISCHARGING BACK INTO THE PIPELINE. A POWER FAILURE RESULTED IN THE OUTLET PUMP TO TURN OFF WHICH STOPPED FLOW OUT OF THE TANK BUT FAILED TO RESTART WHEN POWER WAS RESTORED DUE TO A DEFECT IN THE SCADALYNX SYSTEM. HIGH TANK LEVEL ALARMS WERE REPORTED VIA SCADALYNX TO THE PIPELINE OPERATOR, HOWEVER RESPONSE TIMES THAT MAY HAVE PREVENTED THE ACCIDENT WERE NOT IN TIME DUE TO A COMBINATION OF CELL PHONE COMMUNICATION AND/OR DATA ISSUES. RESPONSE AND CLEANUP EFFORTS WERE IMMEDIATELY DEPLOYED. A FULL INVESTIGATION WAS CONDUCTED TO IDENTIFY AND EVALUATE EXTENUATING CIRCUMSTANCES, CONTRIBUTING FACTORS AND ROOT CAUSES. IMMEDIATE CORRECTIVE ACTIONS WERE IMPLEMENTED AND A FULL FAIL SAFE ANALYSIS WILL BE ORDERED AND CONSIDERED FOR FUTURE UPGRADES TO HELP PREVENT RE-OCCURRENCES OF THIS NATURE.