MAGELLAN PIPELINE COMPANY, LP

Incident Narrative

A MEMBER OF THE PUBLIC NOTIFIED MAGELLAN PERSONNEL OF WHAT APPEARED TO BE DEAD SPOTS OF VEGETATION IN A FARM FIELD. THE LINE WAS SHUT DOWN AND MAGELLAN PERSONNEL INVESTIGATED AND FOUND WHAT APPEARED TO BE PRODUCT. EXCAVATION CONFIRMED A PINHOLE SIZE ANOMALY IN THE PIPE. THE DEFECTIVE PIPE WAS REPLACED WITH A SEGMENT OF NEW, PRE-TESTED PIPE. METALLURGICAL LABORATORY ANALYSIS DETERMINED THE LEAK RESULTED FROM AN AREA OF LATENT MECHANICAL DAMAGE CONTAINING A DENT OR A GOUGE THAT DEGRADED DUE TO ENVIRONMENTALLY ASSISTED CRACKING AND CORROSION. APPROXIMATELY 7,200 CUBIC YARDS OF IMPACTED SOIL WAS REMEDIATED IN ACCORDANCE WITH STATE AND COMPANY STANDARDS. IN NRC REPORT 1013958, THE NATIONAL RESPONSE CENTER MISTAKENLY CLASSIFIED THE RELEASED PRODUCT AS CRUDE OIL INSTEAD OF DIESEL FUEL SO THE NRC ISSUED CORRECTION REPORT #1014483 LISTING DIESEL FUEL. PHMSA'S FILE ON THIS RELEASE SHOULD BE AMENDED TO REFLECT THE CORRECTION REPORT AND MAGELLAN SHOULD BE CREDITED FOR CALLING THE NATIONAL RESPONSE CENTER AT 12:54 CENTRAL TIME. PHMSA'S HAZARDOUS LIQUID ACCIDENT REPORTING FILING INSTRUCTIONS REVISED IN DECEMBER, 2012 PERMIT FILING A FINAL REPORT CONTAINING THE ESTIMATED TOTAL VOLUME OF PRODUCT EXPECTED TO BE RECOVERED ALONG WITH THE PROJECTED COST OF THE TOTAL ENVIRONMENTAL REMEDIATION ""...WHEN THE ESTIMATED FINAL COSTS AND VOLUME OF COMMODITY RECOVERED CAN BE PREDICTED WITH A REASONABLE DEGREE OF ACCURACY"" (PAGE 5 OF 30 OF THE INSTRUCTIONS). AS LISTED ELSEWHERE IN THIS REPORT THE PROJECTED TOTAL PRODUCT RECOVERY IS ESTIMATED TO BE 213 BBLS, AND THE ENVIRONMENTAL REMEDIATION COST IS ESTIMATED TO BE $700,000.