MAGELLAN TERMINALS HOLDINGS, LP

Incident Narrative

A LEAK OCCURRED ON THE PIPELINEDUE TO EXTERNAL CORROSION PITTING. THIS LINE WAS FOUND TO BE UNCOATED, HOWEVER CP READINGS SHOWED TO BE WELL ABOVE THE REQUIREMENTS. THE APPLIED CP DATE OF 1991 WAS BASED ON THE EARLIEST READINGS PROVIDED BY THE PREVIOUS OWNER OF THE RECTIFIER SERVICING THIS LINE. THIS LINE HAS BEEN REMOVED FROM SERVICE. A COURTESY NOTIFICATION WAS MADE TO THE NRC AS IT WAS UNKNOWN IF THE $50,000 CRITERIA WOULD BE MET. HOWEVER THIS RELEASE DID NOT MEET THE NOTIFICATION REQUIREMENTS. AN ATTEMPT TO SUBMIT THIS REPORT WAS MADE ON 5/17/13, HOWEVER, PHMSA'S WEBSITE WAS DOWN FOR THE WEEKEND DUE TO MAINTENANCE. THE INCIDENT INVESTIGATION CONCLUDED THAT THE CP WAS ADEQUATE ON THE LINE BUT WAS INCONCLUSIVE TO THE EXACT MODE OF FAILURE. IT IS UNKNOWN IF ADEQUATE CP WAS APPLIED DURING THE PREVIOUS OWNERSHIP AND MAY HAVE POTENTIALLY CONTRIBUTED TO THE CORROSION OF THE LINE. AS LOCAL PROJECTS ARE COMPLETED THE PIPING AND COATING CONDITIONS ARE EVALUATED AND IDENTIFIED ISSUES ARE ADDRESSED PER MAGELLAN'S 7.01-ADM-001 PIPELINE DEFECT EVALUATION AND REPAIR PROCEDURE.