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Fuel Distribution and Housekeeping

Fuel Distribution and Housekeeping. Colonial Pipeline Company ATA/TMC Summit June 10, 2003. Review floor plan Housekeeping Requirements Progress Where we have started cleaning Cleaning plan and issues. Background Regulations Progress Up-to-date Future. Agenda.

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Fuel Distribution and Housekeeping

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  1. Fuel Distribution and Housekeeping Colonial Pipeline Company ATA/TMC Summit June 10, 2003

  2. Review floor plan Housekeeping Requirements Progress Where we have started cleaning Cleaning plan and issues Background Regulations Progress Up-to-date Future Agenda

  3. 26.2 Million Barrels of Tankage 19.8 Million Barrels of Linefill 1.9 Billion Barrel Miles/Day 2.5 Million Barrels/Day 5,519 Miles of Pipeline 12 Origination Points 267 Terminals Served 14 Tank Farms 301 Tanks 82 Mainline Stations 45 Stubline Stations n

  4. Current Distillate Grades (7) • Low Sulfur Diesel (74 grade) • Fuel Oil Dyed (86 grade) • Military Diesel • Jet fuel (54 grade) • K-1/jet fuel (55 grade) • JP-5 • JP-8

  5. On Road 15 ppm (OR 15) On Road 500 ppm (OR 500) On Road Small Refiner 500 ppm (OR SR 500) Non-Road 15 ppm (NR15) Non-Road Locomotive Marine High Sulfur Dyed (NRLM DYED) Non-Road Locomotive Marine Small Refiner Dyed (NRLM SR DYED) Non-Road Locomotive Marine 500 ppm Baseline Un-dyed (NRLM 500) Non-Road Small Refiner and Early Credits 500 ppm Dyed (NR 500 SR/EC DYED) Heating Oil Dyed (HO DYED) Heating Oil Dyed with Marker (HO DYED WITH MARKER) Locomotive Marine 500 ppm Dyed with Marker (LM 500 DYED WITH MARKER) Military Diesel 15 ppm Kerosene for winterizing (may not be compatible with jet fuel) K-1 Kerosene Dyed K-1 Kerosene Baseline Un-dyed Jet Fuel 3000 ppm JP-5 JP-8 New Distillate Grades (19)

  6. Product grades being shipped(Does not include kerosene and military) • 2006 4 segregations • (OR 15) • (OR 500)(OR SR 500) • (NRLM DYED) • (HO DYED) • 2007 4 segregations • (OR 15) • (OR 500)(OR SR 500)(NRLM 500 UNDYED) • (NRLM DYED)(NRLM SR DYED) • (HO DYED WITH MARKER) • 2010 3 segregations • (OR 15)(NR 15) • (LM 500 DYED WITH MARKER)(NR 500 SR/EC DYED) • (HO DYED) • 2014 3 segregations • (OR 15)(NR 15) • (LM 500) • (HO)

  7. What is Colonial going to do? • He with too many rooms cannot keep them clean. • A room is never kept till one defines how it must be cleaned. Can Ye Pumpit

  8. ULSD System Tests • 2 batches moved in the mainline system • Pipeline movement – no trailback, larger interface (1.5-2 X) • Tank farms and manifold complexity are greatest concern • Every location must be evaluated as ULSD is moved

  9. Can It Be Done • Yes, and…. • Losses will be high • System was designed for flexibility not to prevent low level commingling • Lower incoming sulfur specification will be required • Large volumes will help • Problems may be difficult to resolve

  10. Production problems Product grades being shipped Volumes of each grade Grade demand by location Accuracy of test results Product handling Ability to purge Flow rates Tank flexibility Equipment timing Equipment failures Downstream problems Potential Issues

  11. Supply Planning • Determine what we may be asked to move (grades, volume, location) • Evaluate tank capabilities • Create a plan based on projections and capabilities of how the system will work, including allowable grades, volumes, and transmix volumes • Communicate and reach agreement with our customers

  12. Physical Incoming systems Manifold layout (best tank selection) Valve Integrity Valve timing versus flow rate and displacement volume Ability to displace(dead spots) Inventory and ticketing Procedural Sequence Tank selection Batch cutting procedures Displacements Line operations – booster purging Tank farm operations Regulatory requirements Operational Planning

  13. Downstream Impact • May see early problems as the distribution system learns • Certain grades may not be available based on location (2007-2010)

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