ENTERPRISE PRODUCTS OPERATING LLC

Incident Narrative

PRODUCT (DIESEL) WAS DISCOVERED IN A PREVIOUSLY HAND DUG HOLE ADJACENT TO PRODUCT AND BLOW DOWN LINES. DUE TO HEAVY RAINS BOOM WAS PLACED TO PREVENT PRODUCT RUN OFF. AFTER ADDITIONAL HEAVY DOWN POURS TECHNICIANS NOTICED A SHEEN ON THE GROUND OUTSIDE OF COMPANY PROPERTY. THE OSRO WAS CALLED TO RESPOND. ADDITIONAL BOOM WAS PLACED ALONG WITH PEAT TRAPS. IT IS BELIEVED THAT THE SHEEN WAS TRAPPED IN AN ADJACENT CONTAINMENT POND OF PROPERTY OWNER AND HAD NOT CONTAMINATED ANY OTHER WATER. THE AMOUNT OF PRODUCT RELEASED IS APPROXIMATELY 5-10 BBLS. APPROXIMATELY 250 FT OF PIPE WILL BE REPLACED AND THE ENTIRE LENGTH OF PIPE (.55 MILES) WILL BE HYDROTESTED. JOINT OF PIPE WITH CORROSION WILL BE SENT TO LAB FOR METALLURGICAL ANALYSIS. UPDATE 5/23/2012 - THE 6"" JOINT OF PIPE THAT HAD THE PINHOLE LEAK WAS CUT OUT AND REPLACED WITH 6"" .280 WT FBE COATED PIPE. THE SECTION OF PIPE CUT OUT HAS BEEN SENT TO LAB FOR FAILURE ANALYSIS. LINE 820 WILL OPERATE WITH A 20% PRESSURE REDUCTION FROM HIGHEST HISTORICAL OPERATIONG PRESSURE WITHIN 60 DAYS PRIOR TO LEAK. THE TEMPORARY OPERATING PRESSURE WILL NOT EXCEED 367 PSIG. AS PART OF THE RETURN TO SERVICE, THE EL DORADO TO KANEB (NUSTAR) LINE WILL BE PRESSURED UP, HELD FOR FOUR (4) CONTINUOUS HOURS AND MONITORED FOR LEAKS VIA SCADA. WILL CONDUCT A CLOSE INTERVAL SURVEY ON THIS LINE BY THE END OF JUNE 2012. 7/19/2012 UPDATE - NHAN TRUONG THE INCIDENT INVESTIGATION REPORT DATED JULY 12, 2012 IDENTIFIED DISBONDED COATING AND EXTERNAL CORROSION TO BE THE TWO FACTORS THAT CONTRIBUTED TO THE INCIDENT. A CLOSE INTERVAL SURVEY HAS BEEN CONDUCTED AND A REPORT IS PENDING. THE METALLURGICAL FAILURE ANALYSIS IS PENDING. 7/23/2012 UPDATE - NHAN TRUONG THE METALLURGICAL FAILURE ANALYSIS DATED JULY 19, 2012 CONCLUDED THE CUTOUT CONTAINED AN EXTERNAL CORROSION PIT IN THE PIPE BODY THAT HAD GROWN UNTIL IT PERFORATED THE PIPE WALL. THE REST OF THE EXTERNAL PIPE SURFACE APPEARED NOT TO HAVE CORRODED AND DID NOT EXHIBIT ANY CRACK-LIKE INDICATIONS AFTER A MAGNETIC PARTICLE TEST WAS PERFORMED ON IT. 3/22/2013 UPDATE - NHAN TRUONG THE DATE OF WHICH THE PIPE WAS MANUFACTURED WAS ESTIMATED BASED ON THE DATE THE PIPE WAS INSTALLED (1982).