STERLING EXPLORATION & PRODUCTION CO LLC — Hazardous liquid — incident on 2006-11-16

Hazardous liquid incident. Reported cause: 5. Reported consequences: 0 fatalities, 0 injuries, YES CRUDE OIL released, $0 reported property damage. Operator-reported incident data submitted to PHMSA, generally within 30 days. Records may be supplemented or corrected and do not represent final agency causal findings.

Report number: 20080120.

Operator ID: 31835.

Reported incident date: 11/16/2006.

Cause detail: HEAVY RAINS/FLOODS

Cause detail: MARCH 21, 2007 DEAR CHARLIE, YOU ASKE ME TO LOOK INTO ANY LOSS OF OIL BETWEEN NOVEMBER 9, 2007 THRU NOVEMBER 17TH/ I WOULD HAVE A PROBLEM BELIEVEING THAT WE LEAKED OIL FROM OR 4� CRUDE OIL FOR THA TLONG A PERIOD WITHOUT US OR ANYONE ELSE SEEING A SLICK OR OIL PAD OF THAT SIZE. FOR ONE REASON BEING THAT ON THE DAY OF THE OIL SPILL SHEEN WAS CLEARLY VISIBLE FROM HIGH ISLAND S/T 60A AT THE TIME OF THE SPILL DURING CLEAN UP. I NOR ANY OF MY OPERATORS WERE TOLD OF ANY LOSS OF OIL OR POSSIBLE SPILLS BEFORE WE DISCOVERED THE PIPELINE LEAK ON NOVEMBER 16, 2006. ON TH EDAY OF THE SPILL WHEN IT WAS FOUND WE ONLY HAD ABOUT A � MILE SLICK COMING OFF THE BEACH. I PERSONALLY FEEL THAT WE SHOULD HAVE HAD A CONTINOUS SHEEN IN THE DIRECTION OF THE CURRENT. ON THAT DAY WE HAD MAYBE 1FT. SEES AT THE MOST. I WENT OVER EVERY POSSIBLE REASON FOR THE LOSS OF OIL AND COULD NOT THINK OF ANYTHING BESIDES BAD READING UNTIL I REMEMBERED THE WORK ON THE 16IN. CRUDE LINE ON 241 PLATFORM. I LOOKED BACK THROUGH THE LOGS AND FOUND THAT WE HAD ONE OF OUR OPERATORS ON THE BEACH ON NOVEMBER 10, 2006. I WAS OFFSHORE PREPARING TO PULL THE 16IN. PIG LAUNCHER OFF THE DEPARTING 16IN. L.P. PIPELINE. WE HAD PERVERSELY BEELD OFF ALL THE PRESSURE OFFSHORE ON THE 16IN. AND WAS TRYING TO LOWER THE FLUID LEVEL TO A SAFE LEVEL ON THE PIPELINE RISER TO PULL AND BLIND OFF THE PIPELINE TO DO A REPAIR ON A LOCKED OPEN 16IN. VALVE ON THE PIG LAUNCHER. I HAD A OPERATOR DRIVE DOWN THE OLD B.P. SHORE BASE TO POSSIBLY BLEED OFF ANY REMAINING PRESSURE ON THE INCOMING TIE-IN ON THE 16IN. PIPELING.I HAD HIM CLOSE THE INCOMING 4IN. LINE AND HE TRIED TO BLEED OFF ANY PRESSURE AT THAT POINT DUE TO IT BEING A OLD OUT OF SERVICE THREE PHASE LINE. AS SOON AS HE TRIED TO OPEN THE VENT HE HAD OIL. I THEN CALLED SHUT-IN BOTH DEPARTNING 4IN. LINES OFFSHORE AND I HAD HIM OPEN UP THE 16IN TIE-IN TO THE 6IN DEPARTING PIPELINES TO STAR LAKE TO SEE IF IT WOULD EQUALIZE TO PLAINS TANKS. I THEN HAD HIM GO BACK TO THE INCOMING 16IN. PIG RECEIVER AND I HAD HIM OPEN UP THE 8FT. BLOW DOWN ON THE TOP OF THE RECEIVER. OUR LEVEL STARTED DROPPING OUT ON OR RISER ON 241. WE DID THIS FOR AROUND 7 � TO 8HR. BEFORE WE GOT THE LEVEL AT A SAFE HEIGHT TO PULL AND BLIND FLANGE THE LINE. I CAN NOT SAY THAT WE MIGHT HAVE NOT BACK FILLED THE 16IN. FROM THE OPEN 6IN. CRUDE LINE TO STAR LAKE. IT IS DEFINITELY A POSSIBLE WAY TO MISPLACE THE OIL IN QUESTION DUE TO THE HUGE VOID IN THE LINE FROM ALL THE WATER AND GAS THAT WE REMOVED. THE OTHER PROBLEM IS THA TBEFORE AND AFTER THE JOB THEY DROVE DOWN TO WITH IN 40FT. OF THE FUTURE LEAK AND SAW NO SIGN OF ANY OIL ON THE BEACH OR IN THE WATER. IF THIS IS TRUE THAN ANY OIL THAT WAS LOST IS STILL SITTING IN THE 16IN. BLOCKED OFF LINE AND WILL BE RECOVERED WHEN IT IS PIGGED TO BE PUT BACK IN-SERVICE AS A L.P. CRUDE LINE. THAT WOULD BE THE EXPLANATION FOR THE LOSS OF OIL THAT NO ONE EVER FOUND. FORREST SHRADER STERLING EXPLORATION AND PRODUCTION PRODUCTION SUPERINTENDENT MARCH 21, 2007 RE: OIL SPILL ON THE 4� CRUDE PIPELINE NRC # 818356 ON NOVEMBER 16, 2006 I RECEIVED A PHONE CALL FROM JASON FAJKUS AT 8 A.M.. HE INFORMED ME THAT HE HAD FOUND AN OIL LEAK ON OUR 4TH CRUDE PIPELINE DURING A PIPELINE SURVEY. I HAD THEM FLY OUT TO HIGH ISLAND 24L �A� PLATFORM AND PICK ME UP. I ARRIVED ON THE LOCATION AT 8:20 A.M... WHEN I LANDED ON THE LOCATION I FOUND THAT THE LEAK WAS COMING FROM A HOLE ON THE BOTTOM OF OUR 4TH CRUDE LINE THAT HAD CAME IN CONTACT WITH N 8 IN. CROSSING PIPELINE. THERE WAS A SLIGHT HAZE IN THE WATER SURROUNDING A POOL OF OIL CONTAINED ON THE BEACH. I ESTIMATED A VOLUME OF 3 TO 5 BBLS. I CONTACTED MIKE LUND AND INFORMED HIM OF THE SPILL. I HAD HIM CLOSE THE DEPARTING 4� INCOMING LINE TO THE OLD B.P. SHORE BASE. MIKE CALLED AND LET ME KNOW THAT HE HAD GOT A HOLD OF 55L AND THE PIPELINE WAS SHUT-IN. I HAD MIKE CALL PLAINS MARKETING AND INFORM THEM OF THE SPILL AND TO LET THEM KNOW THAT THE SPILL WAS CONTAINED. WE THEN CALLED GA RNER AND GAVE THEM THE LOCATION OF THE SPILL. THEY INFORMED US THAT THEY WERE EN ROUTE TO THE LOCATION. I THEN CALLED MIKE LUND AND HAD HIM CALL IN THE OIL SPILL DUE TO MY LOCATION AND BAD PHONE SERVICE. I TRANSFERRED INFORMATION AND HAD HE CALL ALL AGENCIES. I THEN WENT TO WORK TO TRY AND PREVENT ANY OIL FROM LEAKING OUT OF THE PIPELINE. I WAS ABLE TO GET A TEMPORARY PATCH ON THE LINE AND WAS ABLE TO STOP THE LEAK. WE THEN FLEW IN TOOLS AND OIL PADS TO HELP CONTAIN ANY OIL GETTING NEAR THE WATER. WE HAD THE OIL CONTAINED FOR ABOUT 1 � HRS. BEFORE THE HIGH TIDE STARTED COMING BACK IN AND BREAKING OUR CONTAINMENT. GLO WAS THE FIRST TO ARRIVE ON SIGHT. ONE OF THE GARNER TRUCKS ARRIVED BUT, THE TRUCK WITH THE BOOM WAS STUCK BEHIND A CAR STUCK IN THE ROAD. THE OTHER TRUCK ARRIVED A SHORT TIME LATER AND A BOOM WAS LAUNCHED TO CONTAIN THE OIL BEING PULLED OUT INTO THE WATER. WE LOST ABOUT A � BARREL OF OIL BEFORE THE BOOM WAS LAUNCHED. GARNER WENT TO WORK TO CLEAN UP ALL THE CONTAINED OIL WITH OIL PADS. WE THEN LAUNCHED A HELO. WITH JASON FAJKUS ON BOARD AND DID A 10 MILE SEARCH BY AIR TO LOOK FOR ANY OTHER PRODUCT IN THE WATER. NO OTHER OIL WAS FOUND. WE COMPLETED THE OIL CLEAN UP. I WENT OVER THE SPILL WITH THE GLO, RRC, USCG AND THE WILDLIFE REFUGE PERSONNEL ON SITE. I OFFERED FLIGHTS TO EVERYONE TO MAKE A SEARCH IF ANY WAS NEEDED TO CLOSE OUT THE SPILL. EVERYONE DECLINED ANY FURTHER SEARCHES TO BE MADE. DEAN WITH THE MCFADDEN WILDLIFE REFUGE INFORMED EVERYONE THAT HE WAS ON LOCATION THE DAY BEFORE, PARKED, WITH IN 50 FT. OF THE LEAK AND THAT IT WAS NOT THERE THE DAY BEFORE. WE MADE THE CALL THAT IT MUST HAVE HAPPENED THE NIGHT BEFORE DUE TO A BAD STORM THAT HAD PASSED THROUGH. ALL PAPER WORK WAS CLOSED OUT AND EVERYONE DEPARTED THE LOCATION. STERLING PERSONNEL STAYED AROUND FOR 4 HRS., TO MAKE SURE THAT OUR TEMPORARY PATCH HELD UP TO THE WAVE ACTION. I WAS ABLE TO INSTALL AN 18� 4� SPLIT SLEEVE CLAMP ON THE DAMAGED AREA ON NOVEMBER 19, 2006. I THEN PRESSURE TESTED THE LINE FOR 24 HRS. NO PRESSURE WAS LOST OR ANY PRODUCT AND THE LINE WAS PUT BACK IN-SERVICE UNTIL WE COULD DO A MORE EXTENSIVE REPAIR THAT WAS NEEDED TO PROPERLY FIX THE SITUATION. FORREST SHRADER STERLING EXPLORATION & PRODUCTION PRODUCTION SUPERINTENDENT

PHMSA trend classification: not significant, not serious.

PHMSA standardized cause: NATURAL FORCE DAMAGE — HEAVY RAINS/FLOODS.

PHMSA indexed costs: $0 reported total cost, $0 in 1984 dollars, $0 in current-year dollars.

PHMSA trend flags, standardized causes, and indexed costs are analytical fields added to operator-reported incident data. They do not represent final agency causal findings.