PLAINS PIPELINE, L.P.

Incident Narrative

AT APPROXIMATELY 6:00 AM ON JUNE 20, 2011, THE STATION OPERATOR CONDUCTING A DRIVE THROUGH INSPECTION OF THE HENDRICK TANK FARM OBSERVED A LARGE STAIN AT THE SURFACE OF THE 24"" SUCTION FILL LINE OF TANK 323. THE CONTROL ROOM WAS IMMEDIATELY NOTIFIED AND THE PIPELINE WAS SHUTDOWN BY 6:02 AM. SURFACE SOILS WERE REMOVED, AND A LOCALIZED CORROSION HOLE APPROXIMATELY .750"" IN DIAMETER WAS FOUND AT THE LOW LYING POINT OF THE PIPELINE SEGMENT. A TEMPORARY CLAMP WAS APPLIED AND THE PIPELINE WAS PUT BACK IN SERVICE AT 9:00 AM. THE FAILED SECTION OF THE PIPE WAS CUT OUT AND REPLACED AND SENT TO A THIRD PARTY LAB TO IDENTIFY THE CAUSE OF THE METAL LOSS. TEST RESULTS DETERMINED THE FAILURE WAS DUE TO ACID PRODUCING BACTERIA (APB) CORROSION AT THE 6 O'CLOCK POSITION WHICH IS DUE TO BACTERIA USUALLY BEING FOUND IN WATER; WATER WOULD ACCUMULATE AT THIS POINT OF THE PIPELINE. TO MINIMIZE THE POSSIBILITY OF RECURRENCE, THE LINE WAS REPLACED WITH A NEW LINE. THE OLD LINE WAS 0.330""W.T AND THE REPLACEMENT LINE IS 0.375""W.T. BIOCIDE TREATMENTS WILL ALSO BE INCREASED FROM ONCE A QUARTER TO A MONTHLY BASIS. THIS FAILURE RELEASED 275 BARRELS OF CRUDE OIL. THE AMOUNT RELEASED WAS CALCULATED USING A SPILL CALCULATION SHEET WHICH MEASURES THE WIDTH AND DEPTH OF THE SATURATED SOIL AND AMOUNT COLLECTED BY VACUUM TRUCK.