Plains All American Comments on HIPS Leak in Gulf

At approximately 11:40 a.m. on December 24, 2006, a release of crude oil was confirmed in the Gulf of Mexico south of Texas City, Texas. It is believed the oil was released from the High Island Pipeline System, which detected a pressure loss and shut down earlier in the day. Plains Pipeline, L.P., the operator of the system that is owned by High Island Pipeline Partners, reported the incident immediately after aircraft were able to reach the site and confirm the presence of crude oil on the water. The oil release is located approximately 30 miles south of Galveston. There were no casualties or injuries reported and all personnel have been accounted for. It is uncertain as to how the incident occurred and a thorough investigation will be made as soon as possible.

All appropriate agencies have been notified. Plains, the U.S. Coast Guard, and the Texas General Land Office are working within a unified command system consisting of Federal and state agencies and oil spill response organizations to manage and mitigate this incident. In addition, Plains has activated its spill response plan to contain and clean up the spill. At present, Plains has mobilized Airborne Support, Inc., Clean Gulf Associates and other additional resources in an effort to minimize the consequences of the incident.