NUSTAR PIPELINE OPERATING PARTNERSHIP L.P.

Incident Narrative

"ON JUNE 9, 2012 A LANDOWNER NOTIFIED NUSTAR OF ODORS COMING FROM HIS IRRIGATION WELL. NUSTAR PIPELINE RUNS EAST/WEST APPROXIMATELY 45 FEET NORTH OF THIS WELL. THE LINE HAS BEEN SHUT IN SINCE MARCH 2012 AND SCADA CONFIRMS PRESSURES HOLDING AT 465 PSI. ON JUNE 13 A 45 FOOT SECTION OF THE PIPELINE WAS EXCAVATED WITH NO SIGNS OF HYDROCARBON IN THE EXCAVATION NOR A LEAK POINT. IT WAS SPECULATED THAT SOMEONE COULD HAVE SABOTAGED THE WELL BY DUMPING GASOLINE DOWN HIS UNLOCKED WELL DUE TO LANDOWNER COMMENT REGARDING RECENT DOMESTIC EVENT. ON JUNE 18 NUSTAR EVACUATED A 5000 FOOT SECTION OF PIPE. ON JUNE 19-21, NUSTAR PRESSURE TESTED AT 1800 PSI WITH WATER THE 5000 FOOT SECTION WHICH LOST PRESSURE OF 1-2 PSI EVERY 45 SECONDS, BUT STABILIZED AT 565 PSI. ON JUNE 24 PRAXAIR LEAK DETECTION SERVICES APPLIED THEIR PROCESS TO DETECT A LEAK AND WAS UNSUCCESSFUL. ON JUNE 26 THE SECTION WAS DIVIDED INTO 2-2000 FOOT SECTIONS AND BOTH SECTIONS WERE PRESSURE TESTED ON JUNE 27. THE SEGMENT TO THE WEST DID NOT HOLD PRESSURE. ON JUNE 29 A 250 FOOT SECTION WAS ISOLATED AND PRESSURE TESTED AND LOST 45 PSI PER MINUTE. ON JULY 5-6, THE 250 FOOT SEGMENT WAS EXCAVATED AND A SMALL HOLE WAS FOUND. NO OTHER FAILURE POINTS WERE FOUND. THE FAILURE POINT WILL BE CUT OUT AND SENT TO KEIFNER FOR METALLURGICAL ANALYSIS. ON 8/30/12 A SUPPLEMENTAL REPORT WAS SUBMITTED DUE TO THE INCREASE COST OF PUBLIC AND NON-OPERATOR PRIVATE PROPERTY DAMAGE EXCEEDING $20,000 OF ORIGINAL ESTIMATE. STILL WAITING ON A REPORT FROM KEIFNER. KIEFNER REPORT FINALIZED ON OCTOBER 30, 2012 INDICATING THE CAUSE OF LEAK WAS SELECTIVE SEAM CORROSION WHICH OCCURRED AT A PRE-EXISTING LACK-OF-FUSION DEFECT WITHIN THE ERW SEAM. TOTAL SOIL EXCAVATED WAS 16 CUBIC YARDS WHICH WAS LANDFARMED AT A KDHE APPROVED SITE AT NUSTAR EL DORADO STATION. 6/19/15 - THIS WILL BE THE FINAL REPORT. THIS SITE HAS GONE TO LONG TERM REMEDIATION AND PRODUCT RECOVERY HAS DIMINISHED TO A POINT OF INSIGNIFICANCE. TOTAL RECOVERED IS 5.69 BARRELS."