MARATHON PIPE LINE LLC — Hazardous liquid — incident on 2008-02-11

Hazardous liquid incident in WINCHESTER, CLARK County, KY. Reported cause: 14. Reported consequences: 0 fatalities, 0 injuries, YES CRUDE OIL released, $3,799,565 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: 20080065.

Operator ID: 32147.

Reported incident date: 2/11/2008.

Cause detail: BODY OF PIPE

Cause detail: YARDS OF SOIL DISPOSED, NOT THE 19052 CUBIC YARDS ORIGINALLY REPORTED. 19052 CUBIC FEET OF SOIL WAS DISPOSED = 705.6 CUBIC YARDS. ON FEBRUARY 11, 2008, AT 9:25 AM EST, A CALL WAS RECEIVED AT THE MARATHON PIPE LINE LLC (MPL) FINDLAY OPERATIONS CENTER FROM A CALLER IN RURAL CLARK COUNTY KENTUCKY STATING THAT CRUDE OIL WAS EVIDENT IN AN AREA NEAR THE MPL OWENSBORO TO CATLETTSBURG (OWC) PIPELINE SYSTEM. THE SYSTEM WAS IMMEDIATELY SHUT DOWN AND FIELD TECHNICIANS WERE DISPATCHED TO THE SITE. AN INCIDENT COMMAND STRUCTURE WAS PUT INTO PLACE TO CONTAIN AND COLLECT THE RELEASED OIL. A SIMULTANEOUS EFFORT WAS INITIATED TO LOCATE THE LEAK SOURCE AND REPAIR THE PIPE. THE LOCATION OF THE LEAK WAS DETERMINED TO BE A SLEEVE, WHICH RECORDS INDICATE WAS INSTALLED IN 1986 AND IT IS IN AN HCA. THE HIGH PRESSURE AT THE POINT OF THE LEAK, ESTABLISHED OVER THE LAST 60 DAYS, IS 643 PSI. ON FEBRUARY 11, 2008, THE PRESSURE AT THE LEAK SITE WAS 479 PSI. EARLY ON FEBRUARY 13, 2008, THE SOURCE OF THE LEAK WAS EXCAVATED BY MPL AND INSPECTED BY MPL AND KIEFNER AND ASSOCIATES. THE INITIAL ASSESSMENT INDICATED A FILLET WELD CRACK ON A CIRCUMFERENTIAL WELD OF THE FULL ENCIRCLEMENT SLEEVE. POST INCIDENT ANALYSIS INDICATED THAT SEVERAL FACTORS CONTRIBUTED TO THE RELEASE: 1. POOR CONSTRUCTION PRACTICES WHEN THE PIPE WAS INSTALLED ALLOWED MANY BOTTOM-SIDE DENTS TO FORM ON THE LINE WHEN IT WAS PLACED INTO SERVICE; 2. STRESS RISERS FROM THE DENT ALONG WITH THE DISBONDED COATING (WHICH SHIELDED CP) AND SOIL CONDITIONS ALLOWED FOR NEAR NEUTRAL PH STRESS CORROSION CRACKING TO START IN THE DENT. 3. THE UPSTREAM SEAL WELD APPLIED IN 1986 WAS POORLY DEPOSITED AT THE 6 O�CLOCK POSITION DUE TO 1) POOR SLEEVE FIT AND 2) LACK OF SUFFICIENT CLEARANCE UNDER THE PIPE FOR REPAIR WELDING. THIS LED TO WATER INFILTRATION UNDER THE SLEEVE, WHICH ALLOWED A CORROSION CELL TO FORM OVER TIME. THE EXISTING SLEEVE SHIELDED THIS AREA FROM CP. 4. THE LACK OF STEEL PUTTY IN THE DENT ALLOWED A SLIGHT MOVEMENT IN THE DENT, WHICH ALLOWED FLEXURE FATIGUE. 5. THE COATING REPAIR ON THE SLEEVE FAILED TO KEEP GROUND WATER FROM INFILTRATING INTO THE FAILED UPSTREAM SEAL WELD. ALL THESE FACTORS TOGETHER RESULTED IN A 5 INCH LONG CRACK FORMING IN THE DENT UNDER THE SLEEVE. THE SPILL VOLUME WAS ESTIMATED TO BE 63 BBLS. THE RATE AND VOLUME OF THE LEAK WAS BELOW FOC CPM DETECTION THRESHOLDS. PI REPRESENTATIVES BELIEVE THAT ALTHOUGH THE SLEEVE WAS NOT LIQUID TIGHT, THE SLEEVE WAS SUCCESSFUL IN MAINTAINING THE STRENGTH OF THE PIPING AND PREVENTED A MAJOR RELEASE. FOR PIPELINE SYSTEMS OPERATED BY MPL, THE RISK OF THE A1 SLEEVE FAILURE IS BELIEVED TO BE UNIQUE TO THE OWC SYSTEM DUE TO 1) THE OWC SYSTEM�S UNIQUELY HIGH DIAMETER/THICKNESS RATIO, AND 2) THE SYSTEM'S SPECIFIC SUSCEPTIBILITY TO SCC. CAUSAL FACTOR: UPSTREAM SEAL WELD AT BOTTOM OF PIPE WAS POORLY DEPOSITED. ROOT CAUSE: STANDARD FOR APPLICATION OF SLEEVE NOT STRICT ENOUGH. THE SLEEVE PROCEDURE USED ON THIS REPAIR IN 1986 IS NO LONGER USED. THE LEAKING PIPE AND SLEEVE WERE ULTIMATELY REPLACED WITH APPROXIMATELY 50 FEET OF PRE-TESTED PIPE. THE CONTAMINATED SOIL AND WATER WERE DISPOSED. MARATHON DEVELOPED A SAMPLING PLAN WITH THE REMEDIATION PLAN ENCOMPASSING 10 YEARS OF MONITORING. TONNAGE OF EARTH WAS 952.62 TONS AND CALCULATIONS WERE BASED ON WET EXCAVATED EARTH EQUALING 100LBS/CUBIC FT. THIS REPORT IS BEING CLOSED WITH ESTIMATED FUTURE COSTS BECAUSE THE REMEDIATION PLAN CALLS FOR 10 YEARS OF MONITORING. ESTIMATE IS BASED ON CURRENT KNOWLEDGE AND AN APPROVED REMEDIATION PLAN. 4/23/2010 - UPDATED AFTER DISCUSSION WHILE FINALIZING THE CLOSURE REPORT FOR KDEP. VOLUME RELEASED AND RECOVERED WAS CHANGED FROM 63 TO 70 BBLS. FINAL CALCULATED VOLUME WAS DETERMINED TO BE 69.7 BBLS, WHICH WAS ROUNDED UP TO 70 DUE TO CONSTRAINSTS ON THIS FORM. ALSO DURING THIS REVIEW, THE CALCULATION FOR THE CUBIC YARDS OF SOIL DISPOSED WAS REVISITED, AND AN ERROR IN THE CALCULATION WAS IDENTIFIED. THE STE P THAT CONVERTED FROM CUBIC FEET TO CUBIC YARDS WAS MISSING. THE REVISED CALCULATION, WHICH IS STILL BASED ON 952.62 TONS OF SOIL DISPOSED EQUALED 705.6 CUBIC

PHMSA trend classification: significant incident, not serious.

PHMSA standardized cause: MATERIAL FAILURE OF PIPE OR WELD — BODY OF PIPE.

PHMSA indexed costs: $3,799,565 reported total cost, $2,118,377.141 in 1984 dollars, $5,216,910.936 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.