CENTURION PIPELINE L.P.

Incident Narrative

ON 7/6/12 AT APX. 11:00, PIPELINE PERSONNEL WERE IN THE PROCESS OF DIGGING OUT LOCATIONS IN PREPARATION FOR PIPE REPLACEMENT/FLANGE UPGRADES ON THE ARTESIA TO WASSON MAINLINE. AT THE SAUNDERS STATION LOCATION, A TRACK-HOE WAS BEING USED DUE TO HARD ROCK DIGGING. THE CONTRACT TRACK-HOE OPERATOR STRUCK A 1"" PIPE THAT TIED IN TO THE ARTESIA TO WASSON 10"" MAINLINE. THE 1"" CONNECTION WAS LOCATED AT APX THE 1 O'CLOCK POSITION AND WHEN STRUCK, RELEASED AN OIL SPRAY INTO THE ATMOSPHERE. BREEZY CONDITIONS WOUND UP CARRYING THE SPRAY, COVERING AN AREA 80' X 513'. EMPLOYEE WHO WAS CENTURION'S ON SITE REPRESENTATIVE, IMMEDIATELY ATTEMPTED SERVAL TIMES TO CONTACT OPERATIONS AND INFORM THEM OF THE SITUATION, BUT DID NOT HAVE CELL PHONE SERVICE. HE THEN CLOSED THE MAINLINE BLOCK VALVE JUST UPSTREAM OF THE LEAK SITE TO STOP THE RELEASE. CCC WAS NOT INFORMED IN ADVANCE OF CLOSING THE VALVE. ARTESIA STATION, TAYLOR INJ AND LOCO HILLS INJ WERE RUNNING AT THE TIME OF THE VALVE BEING CLOSED. THIS RESULTED IN ALL INJECTIONS INCLUDING ARTESIA STATION TO SHUTDOWN ON ""HIGH PRESSURE"". THE HIGHEST PRESSURE RECORDED ON THE SYSTEM BY CCC WAS 682 PSI AT THE LOCO HILLS INJECTION. AFTER CLOSING THE MAINLINE BLOCK VALVE, EMPLOYEE DROVE TO A LOCATION WHERE HE COULD GET CELL PHONE SERVICE AND MADE NOTIFICATIONS.