DENBURY GULF COAST PIPELINES, LLC

Incident Narrative

ON FEBRUARY 24, 2011 AT APPROXIMATELY 8:27PM, THE NIGHT WATCHMAN AT THE LAKE CHARLES PUMP STATION CALLED THE DENBURY PIPELINER ON-CALL TO REPORT A RELEASE OF CO2 AT THE PUMP STATION. THE DENBURY PIPELINER ON-CALL NOTIFIED THE FOREMAN AT 8:35PM AND THE FOREMAN NOTIFIED THE PIPELINE SUPERINTENDANT AT 8:40PM. OTHER APPROPRIATE NOTIFICATIONS WERE MADE AS WELL. A DECISION WAS MADE NOT TO FILE A REPORT WITH THE NATIONAL RESPONSE CENTER SINCE THE CRITERIA FOR SUCH A REPORT WERE NOT MET (THERE WERE NO DEATHS, NO HOSPITALIZATIONS, AND PROPERTY DAMAGE WAS NOT ANTICIPATED TO EXCEED $50,000) THE PIPELINER ARRIVED AT THE LAKE CHARLES PUMP STATION AT 8:55PM TO FIND THAT CO2 VAPORS WERE BEING RELEASED INSIDE THE PUMP STATION YARD AND THAT THE FIRE DEPARTMENT WAS ON-SITE. THE FIRE DEPARTMENT MONITORED OXYGEN LEVELS AND ASKED RESIDENTS TO SHELTER-IN-PLACE. THE PIPELINER SUITED UP IN SCBA AND WENT INTO THE STATION TO ACTIVATE THE EMERGENCY SHUT DOWN (ESD) AT 9:20PM. THE PIPELINER VERIFIED ON THE STATION LOCAL CONTROL PANEL THAT THE PROPER VALVES HAD CLOSED, THEN RETURNED TO THE GATE. PRODUCT WAS STILL BEING RELEASED, SO AT APPROXIMATELY 9:45PM, THE PIPELINER WENT TO THE TRAP AREA AND IDENTIFIED THE POINT OF RELEASE ON THE PIG LAUNCHER. HE UNLOCKED THE 24 INCH AND 8 INCH VALVES ON THE PIG LAUNCHER AND CLOSED THESE VALVES. AT 10:20PM, THE PIG LAUNCHER AND THE LEAK WERE ISOLATED. AT 10:30PM, THE FIRE DEPARTMENT MONITORED OXYGEN LEVELS AROUND THE STATION AND DECLARED ALL CLEAR TO RESIDENTS WHO HAD SHELTERED IN PLACE. ON FEBRUARY 25, 2011, 1:45AM, THE PIG LAUNCHER WAS BLOWN DOWN AND SECURE. ON FEBRUARY 25, 2011, 7:40AM, THE PIG LAUNCHER WAS BLOWN DOWN. LOCK/OUT TAGOUTS WERE INSTALLED ON PIG LAUNCHER 24 INCH AND 8 INCH ISOLATION VALVES. THE SAFETY BOLT ON THE CLOSURE DOOR WAS REMOVED AND THE DOOR TO THE PIG LAUNCHER WAS OPENED. FOUND O-RING TO BE CUT AT THE 1 O'CLOCK POSITION. THE DAMAGED O-RING WAS REMOVED. A NEW O-RING WAS INSTALLED ON THE TRAP CLOSURE, THE CLOSURE DOOR WAS CLOSED AND THE SAFETY BOLT WAS INSTALLED. ON FEBRUARY 25, 2011, 8:50AM, THE 6 INCH KNOCK-OFF CAP OFF OF THE LAUNCHER BARREL BLOWDOWN STACK WAS REMOVED AND THE MATING SURFACE AREAS OF THE KNOCK-OFF CAP AND BLOWDOWN STACK WERE CLEANED. A NEW O-RING WAS INSTALLED IN THE KNOCK-OFF CAP AND THE KNOCK-OFF CAP WAS INSTALLED ON THE BLOWDOWN STACK. THE NEEDLE VALVE IN THE TOP OF THE KNOCK-OFF CAP WAS CLOSED AND THE 1/2 INCH PLUG IN THE NEEDLE VALVE WAS INSTALLED. LOCKOUT/TAGOUTS FROM THE 24 INCH AND 8 INCH BLOCK VALVES ON THE PIG LAUNCHER WERE REMOVED. PICKED UP TOOLS AND DISPOSED OF TRASH. THE LAKE CHARLES PUMP STATION WAS RESTARTED ON FEBRUARY 25, 2011, 2:00PM.