ENERGY TRANSFER COMPANY

Incident Narrative

ON JUNE 1, 2012, AT 0645 HOUR, A THIRD PARTY PIPELINE EMPLOYEE IDENTIFIED A LEAK ON ENERGY TRANSFER COMPANY'S LONE STAR COYANOSA NGL SYSTEM # 1 AND NOTIFIED AN ETC EMPLOYEE. UPON ARRIVAL BY ETC PERSONNEL, AT 0735 HOUR, THE LEAK WAS CONFIRMED. ETC'S OPERATIONS CONTROL WAS NOTIFIED AND SHUT DOWN THE BENEDUM METER FACILITY AT 0745 HOUR. THE LEAK WAS IDENTIFIED ON A 3/4"" PIPE NIPPLE, LOCATED DOWNSTREAM OF THE METER SKID AND WAS CONTAINED ON COMPANY PROPERTY. THE FACILITY IS LOCATED APPROXIMATELY 21 MILES SOUTH OF THE CITY OF MIDLAND, MIDLAND COUNTY TX. IN A REMOTE AREA. AS A RESULT OF THE RELEASE, THERE WAS NO IGNITION, INJURIES, EVACUATION, MEDIA INTEREST, OR RESPONSE BY ANY EMERGENCY OFFICIALS. ALL PRODUCT IMMEDIATELY DISSIPATED INTO THE ATMOSPHERE UPON RELEASE. PRESSURE SENSORS LOCATED ON THE METER SKID AND PIPELINE DID NOT REFLECT THIS LOSS AND DID NOT SEND AN ALARM. REPAIRS WERE MADE AND THE FACILITY WAS RETURNED TO NORMAL OPERATION AT 0857 HOUR ON THE SAME DAY. THIS OCCURRENCE TOOK PLACE ON THE COYANOSA NGL SYSTEM # 1 (TRRC SYSTEM ID 251933), WHICH IS AN INTRASTATE HAZARDOUS LIQUID PIPELINE UNDER THE JURISDICTION OF THE TEXAS RAIL ROAD COMMISSION. OPERATIONS CONTROL MONITORS METER AND PIPELINE PRESSURES AT THIS LOCATION. THERE WAS NO PRESSURE DEVIATIONS NOTED. OPERATIONS CONTROL WILL ADD AN ALARM FOR LOW PRESSURES, IMMEDIATELY DOWNSTREAM OF THE METER SKID TO PREVENT FUTURE REOCCURRENCES. THIS OCCURRENCE WAS TELEPHONICALLY REPORTED TO THE TEXAS RAILROAD COMMISSION (REGULATING AGENCY) ON JUNE 1, 2012 AT 1045 HOUR, AS A ""COURTESY CALL."" INITIAL VOLUME OF PRODUCT LOSS WAS CALCULATED AT 956 BBL., AT $40.74 / BBL., RESULTING IN LESS THAN THE THRESHOLD VOLUME FOR INITIAL INCIDENT REPORTING. THROUGH FURTHER INVESTIGATIONS, THE VOLUME CALCULATED WAS REVISED TO 2880 BBL., RESULTING IN THIS NOTIFICATION. FINAL UPDATE SEPT. 05, 2013: DAMAGES WERE LIMITED TO LOST PRODUCT AND REPAIRS TO PIPE NIPPLE. ESTIMATED COST NOTED ON INITIAL REPORT REMAIN ACCURATE.