Failure Report- Columbia Gas Transmission 1/4/09

Page 1Official PDFDOT US Department of Transportation PHMSA Pipeline and Hazardous Materials Safety Administration OPS Office of Pipeline Safety Eastern Region Principal Investigator Edwin D. Clarkson, WV PSC Region Director Byron Coy Date of Report 8/2/2011 Subject Failure Investigation Report – Columbia Gas Well Line Rupture Operator, Location, & Consequences Date of Failure 01/04/2009 Commodity Released Natural Gas City/County & State Charleston, Kanawha County, WV OpID & Operator Name 2616 ‐ Columbia Gas Transmission Unit # & Unit Name 65921 ‐ COCO A, B, C Storage Fields SMART Activity # 130266 Milepost / Location Latitude: 38.44811, Longitude: ‐81.44553 Type of Failure Rupture of a 6” storage well line due to internal corrosion complicated by low impact toughness of the pipe material Fatalities 0 Injuries 0 Description of area impacted Property Damage $29,011 Rural area. Not within an HCA.#

Page 2Failure Investigation Report – Columbia Gas Transmission Well Line Rupture Failure Date: 01/04/2009 Executive Summary On January 4, 2009, a 6.625 inch diameter storage well line in Coco C storage field near Charleston, Kanawha County, WV, ruptured due to internal corrosion pitting complicated by low impact toughness of the pipe material. The failure apparently occurred 4 hours after the line was pressurized from ambient to 1720 psig. The Maximum Allowable Operating Pressure (MAOP) was 1800 psig. The pipe was 1956‐1957 vintage ERW pipe with a Specified Minimum Yield Strength (SMYS) of 35,000 psig. There were no fatalities, injuries, or supply issues as a result of the incident. System Details The Coco storage fields are located in Kanawha County, West Virginia. Columbia commenced storage operations in the 1950’s. The facility covers over 20,000 acres and includes approximately 60 miles of 4" through 20" pipeline. The pipeline system maximum allowable operating pressure (MAOP) is 1800 psig. The Coco C storage field is located near the town of Blue Creek in Kanawha County, West Virginia, and approximately 20 miles northeast from Charleston, WV. The pipeline that failed was well line X‐52C‐W7329 in the Coco C storage field. The line is 4" diameter coming out of the well and into the measurement station and increases to 6" diameter from the measurement station to the tie in with the field line. The pipe is 1956 ‐ 1957 vintage, X‐35, 0.280" wall thickness. There is no history of internal corrosion related incidents occurring at Coco C field. Events Leading up to the Failure The well line was loaded at the time of failure but was not flowing gas. The valve at the tie in to the field line was closed; the well gate was open. The failure apparently occurred 4 hours after the line was pressurized from ambient to 1720 psig. A local resident near the incident location reported the failure to Columbia Gas Transmission (Appendix 1‐ NRC Report). Emergency Response Columbia Gas Transmission responded to the incident and shut down and isolated the section of pipeline. Summary of Return‐to‐Service The well was shut in. Line W‐7329 was isolated and a replacement project is being considered for approval in 2012. Investigation Details The pipe at the failure location disintegrated into multiple fragments (Appendix 2). Columbia began documentation and recovery of the fragments on 1/7/2009. The pipe fragments were sent out for metallurgical examination. A review of the outside consultants metallurgical report was completed (Appendix 4). The analysis determined that the root cause of failure was internal corrosion complicated by low impact toughness of the pipe material. Page 2 of 3#

Page 3Failure Investigation Report – Columbia Gas Transmission Well Line Rupture Failure Date: 01/04/2009 As a result of this incident, an internal corrosion review was conducted on 10/16/2009. Based on a review of pipeline records, Columbia noted that four other pipelines might have possible low impact toughness properties. After a review of the metallurgical report and the internal corrosion assessment, Columbia developed a remedial plan for examination and selected replacement of Coco C storage lines. (Appendix 5 / Appendix 7). Findings & Contributing Factors The pipe ruptured due to internal corrosion pitting complicated by low impact toughness of the pipe material (Appendix 4). The corrosion pitting was the result of sulfur and chloride containing compounds, and third party investigator speculated that the low point in the pipeline under creek retained free liquids. Future plans are to replace the entire well line in 2012. A means for liquid removal will be considere in the replacement project. Appendices 1 NRC Report #893963 2 Annotated Photographs 3 Operator Accident/Incident Report to PHMSA 4 Laboratory Analysis (Matco Services lab analysis for the failed section) 5 Preliminary Plan 6 Map 7 Update to NiSource Preliminary Plan Appendix 5 Page 3 of 3#

Page 4130266 Appendix 1 - NRC Report 893963 HMIS->INCiDENTs->TELEPhONiCs (Version 3.4.05 PROD ) Rules of Behavior Home Logout Menu [Return to Search] 1..1 of 1 Rescinded Comments (max 250 characters) NRC Number: 893963 Call Date: 01/04/2009Call Time: 16:56:40 Caller Information First Name: Last Name: Company Name: Address: City: State: Country: Zip: Phone 1: Phone 2: Organization Type: Is caller the spiller? Yes No No Response Confidential: Yes No No Response Discharger Information First Name: Last Name: Company Name: Address: City: State: Country: Zip: Phone 1: Phone 2: Organization Type: Spill Information State: County: Nearest City: Zip Code: Location Spill Date: (mm/dd/yyyy) Spill Time: (24hh:mm:ss) DTG Type: DISCOVERED Incident Type PIPELINE Reported Incident Type Description 1 of 2#

Page 5130266 Appendix 1 - NRC Report 893963 Materials Involved Material / Chris Name Chris Code Total Qty. Water Qty. NATURAL GAS ONG 0 UNKNOWN AMOUNT Medium Type: AIR Additional Medium Information: Injuries: Fatalites: Evacuations: Yes No Unknown No. of Evacuations: Damages: Yes No Unknown Damage Amount: Federal Agency Notified: Yes No Unknown State Agency Notified: Yes No Unknown Other Agency Notified: Yes No Unknown Remedial Actions Additional Info Latitude Degrees: Minutes: Seconds: Quadrant: Longitude Degrees: Minutes: Seconds: Quadrant: Distance from City: Direction: Section: Township: Range: Milepost: 2 of 2#

Page 6130266 Appendix 2 - Annotated Photographs Date 1/6/09 Columbia Gas Transmission Inc. Coco Storage C field Line number X-52C-W7329 diameter 6.625 inches, .280 inch wall thickness, X-35 Description of photo – Pipeline indicates internal corrosion. 1 of 11#

Page 7130266 Appendix 2 - Annotated Photographs Date 1/6/09 Columbia Gas Transmission Inc. Coco Storage C field Line number X-52C-W7329 diameter 6.625 inches, .280 inch wall thickness, X-35 Description of photo – Pipeline indicates internal corrosion. 2 of 11#

Page 8130266 Appendix 2 - Annotated Photographs Date 1/6/09 Columbia Gas Transmission Inc. Coco Storage C field Line number X-52C-W7329 diameter 6.625 inches, .280 inch wall thickness, X-35 Description of photo – Short section of line 7329 indicating brittle fracture 3 of 11#

Page 9130266 Appendix 2 - Annotated Photographs Date 1/6/09 Columbia Gas Transmission Inc. Coco Storage C field Line number X-52C-W7329 diameter 6.625 inches, .280 inch wall thickness, X-35 Description of photo – Tie in side where the fracture stops at a weld 4 of 11#

Page 10130266 Appendix 2 - Annotated Photographs Date 1/6/09 Columbia Gas Transmission Inc. Coco Storage C field Line number X-52C-W7329 diameter 6.625 inches, .280 inch wall thickness, Description of photo – Short section of line 7329 indicating brittle fracture 5 of 11#

Page 11130266 Appendix 2 - Annotated Photographs Date 1/6/09 Columbia Gas Transmission Inc. Coco Storage C field Line number X-52C-W7329 diameter 6.625 inches, .280 inch wall thickness, X-35 Description of photo – Tie in side where fracture stops at weld 6 of 11#

Page 12130266 Appendix 2 - Annotated Photographs Date 1/6/09 Columbia Gas Transmission Inc. Coco Storage C field Line number X-52C-W7329 diameter 6.625 inches, .280 inch wall thickness, X-35 Description of photo – Short section of line 7329 indicating brittle fracture 7 of 11#

Page 13130266 Appendix 2 - Annotated Photographs Date 1/6/09 Columbia Gas Transmission Inc. Coco Storage C field Line number X-52C-W7329 diameter 6.625 inches, .280 inch wall thickness, X-35 Description of photo – Overview of well side 8 of 11#

Page 14130266 Appendix 2 - Annotated Photographs Date 1/6/09 Columbia Gas Transmission Inc. Coco Storage C field Line number X-52C-W7329 diameter 6.625 inches, .280 inch wall thickness, X-35 Description of photo – Short section of line 7329 indicating brittle fracture 9 of 11#

Page 15130266 Appendix 2 - Annotated Photographs Date 1/6/09 Columbia Gas Transmission Inc. Coco Storage C field Line number X-52C-W7329 diameter 6.625 inches, .280 inch wall thickness, X-35 Description of photo – Meter house for well 7329 10 of 11#

Page 16130266 Appendix 2 - Annotated Photographs Date 1/6/09 Columbia Gas Transmission Inc. Coco Storage C field Line number X-52C-W7329 diameter 6.625 inches, .280 inch wall thickness, X-35 Description of photo – Storage well 7329 11 of 11#

Page 17130266 Appendix 3 - 7329 30 day final report U.S Department of Transportation Pipeline and Hazardous Materials Safety Administration INCIDENT REPORT – GAS TRANSMISSION AND GATHERING SYSTEMS Report format corresponds to Form PHMSA F 7100.2 (01-2002) Report Date February 2, 2009 No. 20090010 - 8041 PART A – GENERAL INFORMATION N Original Report Y Supplemental Report Y Final Report 1. Operator Name and Address a. Operator's 5-digit Identification Number 2616 b. If Operator does not own the pipeline, enter Owner's 5-digit Identification Number (when known) c. Name of Operator COLUMBIA GAS TRANSMISSION CORP d. Operator street address 1700 MACCORKLE AVENUE e. Operator address City CHARLESTON County or Parish KANAWHA State WV Zip code 25314 2. Time and date of the incident Hour 15:30 Date of the incident 1/4/2009 3. Location of incident a. Street or nearest street or road 300 WALTHER ROAD b. City ELKVIEW County or Parish KANAWHA c. State WV Zip Code 25071 d. Mile Post/Valve Station LINE X52CW7329 e. Survey Station No f. Latitude 38.44811 Longitude -81.44553 g. Class location description Onshore (Class Location) 1 Offshore N Area Block # State Outer Continental Shelf N h. Accident on Federal Land other than Outer Continental Shelf N i. Is pipeline Interstate Y 4. Type of leak or rupture Leak or Rupture RUPTURE Type of Leak - Puncture, diameter (inches) Type of Rupture LONGITUDINAL-TEAR/CRACK - Tear/Crack, length (inches) 480 - Propagation Length, total, both sides (feet) 40 Other (specify) 5. Consequences a. Fatality No Total number of people 0 Employees 0 General Public 0 Non-employee Contractors 0 b. Injury requiring inpatient hospitalization No Total number of people 0 Employees 0 1 1 of 4#

Page 18130266 Appendix 3 - 7329 30 day final report General Public 0 Non-employee Contractors 0 c. Property damage/loss (estimated) Yes Total $ 29,011 Gas loss $ 29,011 Operator damage $ 0 Public/private property damage $ 0 d. Release Occurred in a 'High Consequence Area' N e. Gas Ignited / Gas did not ignite Gas did not Ignite f. Explosion / No Explosion NO EXPLOSION g. Evacuation (general public only) N Number of people 0 Evacuation Reason 6. Elapsed time until area was made safe Hours 1 Minutes 0 7. Telephone Report NRC Report Number 893963 Date 1/4/2009 8. Pressure a. Estimated pressure at point and time of incident (PSIG) 1700.00 b. Max. allowable operating pressure (MAOP) (PSIG) 1800.00 c. MAOP established by 49 CFR section 49 CFR 192.619(a)(3) d. Did an over pressurization occur relating to the incident? N PART B – PREPARER AND AUTHORIZED SIGNATURE Preparer's Name GEORGE HAMATY Preparer's Title Area Code and Telephone Number 3043573728 Preparer's E-mail Address GHAMATY@NISOURCE.COM Area Code and Facsimile Number 3043573804 PART C – ORIGIN OF THE INCIDENT 1. Incident occurred on TRANSMISSION 2. Failure occurred on BODY OF PIPE Other (specify) 3. Material involved (pipe, fitting, or other component) STEEL Plastic failure was a. ductile N b. brittle N c. joint failure N Material other than plastic or steel 4. Part of the system involved in incident PIPELINE Other (specify) 5. Year the pipe or component which failed was installed 1958 PART D – MATERIAL SPECIFICATION 1.Nominal pipe size (NPS) (inches) 6.63 2. Wall thickness inches 0.28 3. Specification UNKNOWN SMYS 35000 4. Seam type ERW 5. Valve type 6. Pipe or valve manufactured by UNKNOWN in year 1956 PART E - ENVIRONMENT 1. Area of incident UNDER GROUND Other (specify) Depth of cover (inches) 24 2 2 of 4#

Page 19130266 Appendix 3 - 7329 30 day final report PART F – APPARENT CAUSE F1 – CORROSION 1. External Corrosion 2. Internal Corrosion Yes Complete items a-e where applicable a. Pipe Coating COATED b. Visual Examination LOCALIZED PITTING Other (specify) c. Cause of Corrosion OTHER Other (specify) SULFUR AND CHLORIDE CONTAINING COMPOUNDS d. Was corroded part of pipeline considered to be under cathodic protection prior to discovering incident? Y Year Protection Started 1970 e. Was pipe previously damaged in the area of corrosion? N How long prior to incident? Years Months F2 – NATURAL FORCES 3. Earth Movement Description Other (specify) 4. Lightning 5. Heavy Rains/Floods Description Other (specify) 6. Temperature Description Other (specify) 7. High Winds F3 - EXCAVATION 8. Operator Excavation Damage (including their contractors) / Not Third Party 9. Third Party Excavation Damage a. Excavator group b. Type Other (specify) c. Did operator get prior notification of excavation activity? Date received mo. day yr. Notification received from d. Was pipeline marked? Temporary markings Permanent markings Marks were Were marks made within required time? F4 – OTHER OUTSIDE FORCE DAMAGE 10. Fire/Explosion as primary cause of failure Description 11. Car, truck or other vehicle not relating to excavation activity damaging pipe 12. Rupture of Previously Damaged Pipe 13. Vandalism F5 – MATERIAL AND WELDS Material 14. Body of Pipe Description Other (specify) 15. Component Description Other (specify) 3 3 of 4#

Page 20130266 Appendix 3 - 7329 30 day final report 16. Joint Description Other (specify) Weld 17. Butt Description Other (specify) 18. Fillet Description Other (specify) 19. Pipe Seam Description Other (specify) Complete a-g if you indicate any cause in part F5 a. Type of failure Construction Defect NO DATA Description Material Defect NO DATA b. Was failure due to pipe damage sustained in transportation to the construction or fabrication site? c. Was part which leaked pressure tested before incident occurred? d. Date of test Month Day Year e. Test medium Other (specify) f. Time held at test pressure hr g. Estimated test pressure at point of incident (PSIG) F6 – EQUIPMENT AND OPERATIONS 20. Malfunction of Control/Relief Equipment Description Other (specify) 21. Threads Stripped, Broken Pipe Coupling Description Other (specify) 22. Ruptured or Leaking Seal/Pump Packing 23. Incorrect Operation a. Type Other (specify) b. Number of employees involved who failed post-incident test Drug test Alcohol test c. Were most senior employee(s) involved qualified? d. Hours on duty F7 – OTHER 24. Miscellaneous Description 25. Unknown Description PART G – NARRATIVE DESCRIPTION OF FACTORS CONTRIBUTING TO THE EVENT FAILURE INVESTIAGTION SHOWED THAT THE CAUSE OF FAILURE FOR THIS PIPE WAS INTERNAL CORROSION PITTING COMPLICATED BY LOW IMPACT TOUGHNESS OF THE PIPE MATERIAL. THE CORROSION PITTING IS THE RESULT OF SULFUR AND CHLORIDE CONTAINING COMPOUNDS, AND THIRD PARTY INVESTIGATOR SPECULATED THAT THE LOW POINT IN THE PIPELINE UNDER CREEK RETAINED FREE LIQUIDS. THIS LINE REMAINS OUT-OF-SERVICE AS OF MARCH 2010. FUTURE PLANS ARE TO REPLACE THE ENTIRE WELL LINE IN 2010. A MEANS FOR LIQUID REMOVAL WILL BE INCLUDED IN THE REPLACEMENT PROJECT. 4 4 of 4#

Page 21Appendix 4 Laboratory Analysis (Matco Services lab analysis for the failed section) This document is on file at PHMSA#

Page 22Appendix 5 Preliminary Plan This document is on file at PHMSA#

Page 23130266 Appendix 6 - Columbia Coco C I03 Incident Location 1 of 2#

Page 24130266 Appendix 6 - Columbia Coco C I03 Incident Location 2 of 2#

Page 25Appendix 7 Update to NiSource Preliminary Plan Appendix 5 This document is on file at PHMSA#