CENEX PIPELINE LLC

Incident Narrative

ON JULY 9, 2013, CENEX PIPELINE WAS DELIVERING PRODUCT INTO THE GLENDIVE TERMINAL WITH THE BALANCE PUMPING TO MINOT, ND AT A RATE OF APPROXIMATELY 1100 BARRELS PER HOUR. AT APPROXIMATELY 3:02 P.M. MDT, THE CENEX PIPELINE CONTROLLER NOTICED A SIGNIFICANT PRESSURE DROP AT THE DISCHARGE OF GLENDIVE TERMINAL AND ARNEGARD STATION. THE CONTROLLER BEGAN TO SHUT DOWN THE 8 INCH DIAMETER PIPELINE SEGMENT BETWEEN GLENDIVE AND MINOT AS A RESULT OF AN UNEXPLAINED PRESSURE DROP AND HAD THE PIPELINE SHUTDOWN AND ROV'S CLOSED BY 3:05 AND 25 SECONDS. AT APPROXIMATELY 3:11 P.M., A REPRESENTATIVE OF THE EXCAVATOR PHONED THE CONTROL CENTER TO REPORT THAT THEIR COMPANY MAY HAVE HIT THE PIPELINE DURING EXCAVATION AND BELIEVE THAT IT IS DAMAGED. THE EXCAVATOR REPORTED THE APPROXIMATE LOCATION OF THE RELEASE IN THE AREA BETWEEN ALEXANDER AND ARNEGARD IN SECTION 26 AND 27. THE PUNCTURE OCCURRED NEAR CENEX PIPELINE MILE POST 81, AND A PHOTOGRAPH OF THE DAMAGED PIPE IS INCLUDED IN EXHIBIT SECTION 7. CENEX PIPELINE ESTIMATES THAT 870 BARRELS OF GASOLINE WAS RELEASED AT THE SITE WITH APPROXIMATELY 38 BARRELS OF FREE PRODUCT BEING RECOVERED. THE RELEASED PRODUCT DID NOT IGNITE, DID NOT REACH ANY SURFACE WATER, AND THERE WERE NO REPORTED INJURIES OR FATALITIES AS A RESULT OF THIS RELEASE. THE CAUSE OF THIS DAMAGE WAS DETERMINED TO BE EXCAVATOR FAILURE TO NOTIFY THE ONE CALL CENTER OF A CHANGE IN LOCATION OF THE EXCAVATION. THE EXCAVATOR REROUTED THE EXCAVATION 373' AWAY FROM THE ORIGINAL PLANNED EXCAVATION ROUTE, THAT WAS PREVIOUSLY MARKED BY CENEX PIPELINE AND HYDRO EXCAVATED AT THE PLANNED CROSSING LOCATION, IN COORDINATION WITH THE EXCAVATOR. THE REROUTE LOCATION WAS WITHIN VIEW OF THE EXISTING CENEX PIPELINE MARKINGS AT THE PLANNED EXCAVATION LOCATION. UPON DECIDING TO REROUTE THE EXCAVATION, THE EXCAVATOR FAILED TO CONTACT ND ONE CALL TO REQUEST A NEW LOCATE NOR DID THEY CONTACT CENEX PIPELINE TO PROVIDE NOTIFICATION OF THE CHANGE IN ROUTE. 1353 TONS OF CONTAMINATED SOIL WERE TRANSPORTED TO IHD SOLIDS MANAGEMENT, LLC - WILLISTON, ND FOR DISPOSAL.