NUSTAR LOGISTICS, L.P.

Incident Narrative

ON JANUARY 11, 2010, WHILE FLYING A ROUTINE WEEKLY AREIAL PATROL ON THE HOUSTON 12"" PRODUCTS PIPELINE, THE PILOT OBSERVED A SUSPICIOUS WET SPOT ON THE ROW AND REPORTED IT TO THE AREA PIPELINE MANAGER AT 1134 HRS. A PIPELINE OPERATOR WAS SENT TO INVESTIGATE AND CONFIRM IF NUSTAR'S PIPELINE WAS INVOVLED. AT 1447 HRS. THE PIPELINE OPERATOR CONCLUDES THAT THE WET SPOT IS DUE TO A RELEASE IN A COMMON ROW WITH OTHER PIPELINE OPERATIORS AND NOTIFIES THE AREA PIPELINE MANAGER. THE PIPELINE WAS SHUT DOWN AND RESPONSE PERSONNEL WITH EQUIPMENT WERE CALLED TO THE SITE. AT 1447 HRS. EXCAVATION ACTIVITIES WERE BEGUN AND THE NRC AND RAILROAD COMMISSION WERE NOTIFIED OF A POSSIBLE RELEASE ON NUSTAR'S PIPELINE. AT 1955 HRS. A SMALL LEAK WAS DISCOVERED ORIGINATING FROM NUSTAR'S PIPELINE. A PLIDCO SPLIT SLEEVE CLAMP WAS APPLIED AND BY 2208 HRS. THE PIPELINE WAS RESTARTED. JANUARY 12, 2010, REMEDIATION ACTIVITIES BEGAN AND CONTINUED TO COMPLETION ON JANUARY 20, 2010. THE LEAKING PORTION OF THE PIPELINE HAS BEEN REPLACED AND THE PIPE SPECIMEN IS BEING SHIPPED TO KIEFNER AND ASSOCIATES, INC. FOR THIRD PARTY ANALYSIS, AFTER WHICH, A LABORATORY REPORT WILL BE ISSUED. AT THAT TIME THE CAUSE OF THE LEAK WILL BE KNOWN AND A FINAL 7000.1 FORM WILL BE SUBMITTED. UPDATE: CAUSE OF THE RELEASE & SEQUENCE OF EVENTS AN OUTSIDE CONSULTANT, KIEFNER & ASSOCIATES HAS INVESTIGATED THE SOURCE OF THE FAILURE AND CONCLUDED THAT THE LEAK OCCURRED AS A RESULT OF CRACK PROPAGATION DUE TO PRESSURE-CYCLING FATIGUE. THERE WAS NO EVIDENCE OF DISBONDMENT OR ACTIVE CORROSION BETWEEN THE AQUAWRAP BONDING MATERIAL AND THE PIPELINE ITSELF, INDICATING THAT AN INITIAL MICROSCOPIC CRACK PRE-EXISTED THE INSTALLTION OF THE AQUAWRAP AND PROPAGATED TO FAILURE. THE TIMES IN PART A QUESTIONS 4 AND 18A HAVE BEEN UPDATED IN THIS FINAL REPORT TO ACCOMODATE PHMSA'S ELECTRONIC SYSTEMS'S TIME LOGIC VALIDATION CHECK. SPECIFICALLY, NUSTAR REVISED QUESTION 4 FROM 1715 TO 1447. ADDITIONALLY, QUESTION 18A WAS CHANGED FROM 1715 TO 1457. NUSTAR'S MAINTAINS THAT ITS ORIGINAL REPORT MORE ACCUARATELY DEPICTS THE SEQUENCE OF EVENTS IN REGARDS TO QUESTIONS 4 AND 18A OF PART A BUT HAS CHOSEN TO INCORPORATE THE LISTED CHANGES IN ORDER TO ACCOMODATE THE AGENCY'S REQUEST.