PLAINS PIPELINE, L.P.

Incident Narrative

APPROXIMATELY 20 BBLS OF CRUDE OIL WERE RELEASED FROM A SEGMENT OF THE RED RIVER PIPELINE. AT THIS TIME, THE CAUSE OF THIS RELEASE IS UNKNOWN. THE LINE WAS DRAINED AND APPROXIMATELY 20 FT OF PIPE WAS REMOVED AND REPLACED. ONCE THE PIPING WAS REPLACED, NORMAL OPERATIONS WERE RESUMED. THE FAILED PIPE HAS BEEN SENT TO THE LAB FOR ANALYSIS. A SUPPLEMENTAL REPORT WILL BE SUBMITTED ONCE THE RESULTS HAVE BEEN RECEIVED. NATIONAL RESPONSE CENTER (NRC) WAS NOTIFIED ON DECEMBER 19, 2013, ONCE THE ESTIMATED PROPERTY DAMAGE EXCEEDED $50,000. NRC ASSIGNED REPORT NUMBER 1069049. SUPPLEMENTAL NARRATIVE: THE PIPE WAS NOT SENT TO THE LAB DUE TO THE MISPLACEMENT OF THE FAILED PIPE SECTION BY A 3RD PARTY. STEPS ARE BEING TAKEN TO RETRAIN THE CREW RESPONSIBLE AND PLAINS IS IN THE PROCESS OF RE-EVALUATING OUR PROCEDURES, IN ORDER TO PREVENT THIS FROM OCCURRING IN THE FUTURE. BASED ON VISUAL EXAMINATION, THE CAUSE OF THE RELEASE HAS BEEN DETERMINED AS A PINHOLE SIZE, EXTERNAL CORROSION ON THE GIRTH WELD, AT THE 12:00 POSITION, WITH DISBONDED COATING. THE PINHOLE LEAK WAS CLAMPED AND THE ENTIRE PIPE JOINT WAS CUT OUT AND REPLACED WITH A NEW PIPE JOINT. PLAINS HAS REDUCED THE INSPECTION INTERVAL TO THREE YEARS RATHER THAN FIVE YEARS AND IS PLANNING TO RUN A TRANSVERSE FLUX-LEAKAGE INSPECTION (TFI) TO ASSESS FOR CIRCUMFERENTIAL DEFECTS.