PACIFIC NORTHWEST FUEL PRICING & LOGISTICS 101

1. PACIFIC NORTHWEST FUEL PRICING & LOGISTICS 101 PRESENTED BY: ASSOCIATED PETROLEUM PRODUCTS, INC FRANK PUPO, JR

2. WHO IS APP? • Fuel Services • Lubricants • Retail • Alternative Energy • Equipment & Spill Control

3. LOGISTICS • Where does product come from? • What makes up a refined barrel of crude? • Alaska • Canada • Saudi Arabia • Mexico

4. LOGISTICS • Local Supply Points • Main Terminals • Tacoma • Seattle • Anacortes

5. HISTORY OF PRICING • How are prices established? Crude oil well is drilled Crude oil is sold off a benchmark (i.e. NYMEX) in contracts to refiners Refiners use cost, futures, terminal fees, local market conditions to establish rack pricing Crude contract price becomes refiner input cost Rack prices become distributor product cost Distributor product cost and transportation costs create end user price

6. HISTORY OF PRICING • Distributor Pricing Breakdown • Rack Cost • Freight • Margin • Taxes • Current Fuel Taxes • WA State Hazardous Substance Tax 0.7% • Federal Oil Spill $0.0019 • Federal LUST $0.0010 • Federal Excise Tax $0.1830gas/$0.243dsl • State Excise Tax $0.3750 • B & O Tax (Indian Tribes are exempt B&O Tax) 0.484%

7. HISTORY OF PRICING • What drives market prices? • National & global crude supply • Local product supply • Value of the US Dollar • Futures market • Speculation • Product demand • Pipeline & Terminal shut downs

8. BRANDED VS UNBRANDED • Are the markets the same? • What causes the price differences? • Funding & Image Programs • Supply • Demand • Additive • What about diesel?

9. BRANDED VS UNBRANDED

10. ALTERNATIVE FUELS • State of the Industry • Why E10? • Product Supply • Feedstock • Soy • Canola • Waste Oil • Market • Federal mandates • 9 billion gallons in 2008 to 36 billion gallons by 2022 • WA mandates • Aggregate B2

11. CONVENIENCE STORES HAZARDS & SAFETY GUIDELINES PRESENTED BY: ASSOCIATED PETROLEUM PRODUCTS, INC TARYN MILLER

12. C KEY HAZARDS • Key hazard areas/safety concerns at convenience stores: • Slips, Trips & Falls • Robbery • Gasoline Dispensing Operations

13. SLIPS, TRIPS, & FALLS • Key Over one million people in the U.S. experience a significant slip, trip, or fall each year. • An average of 17,000 Americans die from their slip and fall accidents • Falls account for one quarter of serious injuries in the workplace. • Seventy percent of slips and falls occur on level ground. • Questionable slip and falls claims rose 51 percent from the first half of 2009 over the first half of 2008, according to the National Insurance Crime Bureau.

14. SLIPS, TRIPS, & FALLS • Causes • Outside the store: • Potholes in lot/dispensing area • Speed bumps • Curbing – painted yellow or other contrasting color? • Other changes in elevation – unlevel sidewalk panels, wide cracks in concrete • Ice/snow and other weather conditions • Inside the store: • Drink dispensing area – mat present? • Aisle ways – keep clear of boxes, etc • Water tracked in from outside – non-skid mats at door recommended

15. SLIPS, TRIPS, & FALLS • If you have a slip & fall onsite: • Injured persons should be attended to immediately; show compassion but never admit fault. • Accident/incident investigations should be conducted and documented immediately (see sample form provided). • Take immediate steps to prevent further accidents, if possible. • File a claim as soon as possible, even if it does not appear as though you will be considered responsible for the injury. • Take photos of the area fall occurred, even if nothing appears wrong.

16. ROBBERY • Lighting is one of the greatest deterrents to robbery – make sure all lights functioning properly • Cash register should be near front door, with unobstructed outside visibility • Limit amount of money in register – drop into safe once exceeded • Seventy Make eye contact, pleasantly greet customers as they enter the store. Easy to spot an issue ahead of time.

17. ROBBERY • Signs to have: • “Employees do not have access to the safe” • Height indicators for doors • “Cash is kept to a minimum in this store”

18. ROBBERY • How Robbery Reaction Guidelines (handout)

19. GASOLINE DISPENSING OPERATIONS • Control ignition hazards during vehicle fueling • No smoking, shut off engines, cell phones, static electricity, etc. • Filling portable containers • Prevent filling of unacceptable containers • Make sure container is on ground, not in back of truck, etc. • Filling Emergency response procedures • How to operate emergency pump shutoff controls, F.D. phone # • How to respond to small fuel spills (placing absorbent material on spilled fuel)

20. GASOLINE DISPENSING OPERATIONS • Filling Emergency response procedures • How to operate emergency pump shutoff controls, F.D. phone # • How to respond to small fuel spills (placing absorbent material on spilled fuel) • How to use a fire extinguisher • Remember PASS acronym • Pull, Aim, Squeeze, Sweep

21. CONVENIENCE STORE SAFETY • No substitute for training • Make sure every employee knows site specific procedures and safety rules • Complete regular site inspections, document any issues (handout)