HOLLY ENERGY PARTNERS - OPERATING, L.P.

Incident Narrative

AT 7:10 AM (MST) A PHONE CALL WAS RECEIVED BY THE HEP OPERATIONS CONTROL CENTER FROM AREA SUPERVISOR REPORTING A RELEASE OF CRUDE PRODUCT FROM TANK 5103. A DIKE WAS BUILT AROUND THE AREA OF THE TANK WHERE THE PRODUCT WAS BEING RELEASED. ALL PRODUCT WAS CONTAINED WITHIN THE TANK DIKE. VACUUM TRUCKS ARRIVED ON SITE AT APPROXIMATELY 9:15 AM (CST) AND BEGAN RECOVERING PRODUCT AND EMPTYING THE TANK. AT APPROXIMATELY 10:37 AM (MST) A TELEPHONIC REPORT WAS MADE TO THE NRC (REPORT #1008475). AT 10:44 AM (MST) THE AREA SUPERVISOR COMMUNICATED AN UPDATE ON THE VOLUME RECOVERED AND THAT THERE WERE NO VISIBLE SIGNS OF THE CONTINUOUS RELEASE OF PRODUCT FROM THE TANK. AT 11:27 AM (MST) A NOTIFICATION WAS MADE TO THE TEXAS RAILROAD COMMISSION (MIDLAND OFFICE) AND AN H8 HAS BEEN FILED WITH THEM AS WELL. IN ADDITION, AN UPDATED REPORT WAS GIVEN TO THE NRC (REPORT # 1008489) AT 11:45 AM (MST). THE CONTAMINATED SOIL HAS BEEN DELINEATED. THE ESTIMATED VOLUME OF COMMODITY RELEASED WAS DETERMINED TO BE 116 BBLS AND THE ESTIMATED VOLUME OF THE COMMODITY RECOVERED WAS 40 BBLS. THE TANK HAS BEEN EMPTIED, CLEANED AND A FLOOR SCAN IS COMPLETE WITH NO INDICATIONS OF ADDITIONAL SOIL SIDE CORROSION. THE INFORMATION AVAILABLE SHOWS THAT THE LEAK WAS A RESULT OF COATING AND TANK FLOOR DAMAGE DUE TO CORROSION CAUSED BY THE CONTACT OF THE INTERNAL FLOATING ROOF LEGS AND THE TANK FLOOR. REPAIRS WILL BE MADE TO THE TANK FLOOR BY REMOVING THE DAMAGED AREA, INSTALLING A NEW FLOOR PLATE, SECONDARY STEEL ""STRIKER PLATES"" AND INSTALLING ADDITIONAL NON-METALLIC PADS TO MINIMIZE DAMAGE WHEN THE INTERNAL FLOATING ROOF LEGS AND TANK FLOOR MAKE CONTACT.