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							TRANSPORTATION OF ULSD
  MAP SYSTEM TESTING

       Transport and Station
Observations and Recommendations

               January 26, 2005
      TOMA – Diesel Fuel Marketers Seminar
                 Nashville, TN
                                             1
ULSD Timeline
  80% pool




                2
Diesel Marketing - Low Sulfur or ULSD?
   Who are your customers?

   What are your logistical capabilities –
    tanks, lines, dispensers?

   What are your supply options?

   What is your risk tolerance?

   Pricing?

   HOW DO YOU ENSURE
    PRODUCT QUALITY?                          3
            Light Product Distribution System
                  Pre-Test Observations

   Barges, Pipelines, Terminals, Transports have little or no
    experience in handling ultra low sulfur diesel product
   Protecting the sulfur quality of ULSD while transporting it
    presents a challenge as difficult as when handling Jet Fuel
   Industry has a new distribution challenge that has not been
    completely quantified. Additional transportation system
    testing and sharing of test data will be required.
   Industry will spend millions of dollars to make facility and
    procedural changes to our transportation systems to
    minimize the risk of sulfur contamination
                                                              4
Objective of MAP ULSD Testing

Evaluate the capability of barge, pipeline,
 terminal, transport and retail facilities to
   deliver ≤ 15 ppm ULSD to the retail
                customer.




                                                5
MAP ULSD Testing Background
   Barge transportation, loading and unloading operations
   Originating tank and manifold piping
   Pipelines from 6” through 20” – up to 500 miles in length
   Destination manifolds and tank piping
   Terminal Aboveground Storage Tanks
   Transport loading and unloading operations
   Retail Station Underground Storage Tanks
   Third party pipeline companies ability to move ULSD

                                                             6
                Test Scenario Example
                           Gulf Coast to Louisville
                           ~ 24,000 bbls ULSD ~250 samples
                                                       Test flushing procedures on the
      Lexington Terminal                               barge loading piping. Product was
                                                       not loaded on barge.

         Tank 24-
         829                                                              Louisville Algonquin
                                                                          Terminal

  (Lexington, KY)                                       Tank 36-96               (Louisville, KY)


                                                                                    Transport Truck




                                       Barge




                                                                          Retail Facility




             Third Party Acquisition
(Gulf Coast)

                                                                                                      7
Terminal Operations


   Observations & Recommendations



                                    8
Observations - Terminal Operations
   Distillate aboveground storage tanks, after
    receipt of ULSD, showed indications of
    product (sulfur) stratification
   A single tank sample will not represent the
    overall sulfur level of the product in the
    tank
   Tank turns (heel mixing) for above ground
    storage tanks may not be effective for
    converting tanks to ULSD
   Header displacement tests indicate that
    dead leg piping will displace
                                                  9
Recommendations - Terminal Operations
   To obtain the sulfur level of ULSD in a
    tank, several samples at different liquid
    heights will be required
   Tanks must be emptied and have two
    turnovers, emptying the tank each time,
    before the tank can protect ULSD
   Contamination from dead legs remains a
    possibility.
       Each terminal must be thoroughly analyzed for
        dead leg contamination


                                                        10
Transport Operations




                       11
Objectives of Transport Testing
   Determine the sulfur contamination impact
    of transport heels

   Establish if the transport type, flat vs.
    slope bottom, contributes differently to
    contamination




                                                12
    Transport Testing Background
   Two scenarios included transport testing
       Louisville 4/16/04
       Macon 5/31/04
   Previous contents of the transports were jet fuel at
    1425 ppm sulfur
   Transports were compartmented
       One loaded “as is”
       One drained down at rack prior to loading
       One flushed at rack prior to loading
   300 gallons loaded in each compartment


                                                           13
Observations – Flat Bottom Transports
                                                                   GRAPH T-4
                                                       Scenario 1 - Transport Load Test 4
                                                        Flat Bottom Trailer #345 - 4/16/04
                15


                                           1/2 gal contamination
                                             with 1425 ppm Jet                                                         14.2
                14                                  Fuel




                                                                       14.0
                                           1/4 gal contamination
                13                           with 1425 ppm Jet                                                         13.0
                                                    Fuel




                                                                                             12.6
                12
 Sulfur - ppm




                         11.8




                                     Load Arm
                11
                                     Compartment Sample




                                                                                                            10.9
                                    Repeatability of ULSD
                10                 Test Method is ±1.2 ppm




                9



                      Load Arm -                                    "As Is" Test       Drain At Rack      Flush
                8    ULSD Sample                                   Compartment 2      Compartment 3    Compartment 4

                                                                                                                              14
Observations – Slope Bottom Transports
                                                                   GRAPH T-3
                                                       Scenario 1 - Transport Load Test 3
                                                   Conical Sloped Bottom Trailer #400 - 4/16/04
                15



                                    1/2 gal contamination with
                                        1425 ppm Jet Fuel                                                            14.2
                14




                13                  1/4 gal contamination with
                                                                                                                     13.0
                                        1425 ppm Jet Fuel




                12

                                                                      12.3
 Sulfur - ppm




                                     Load Arm
                          11.8




                                                                                           11.7
                11                   Compartment Sample




                                                                                                           10.9
                                    Repeatability of ULSD
                                   Test Method is ±1.2 ppm
                10




                 9


                      Load Arm -                                  "As Is" Test       Drain At Rack      Flush
                     ULSD Sample                                 Compartment 1      Compartment 3    Compartment 4
                 8

                                                                                                                            15
Transport Operations Observations
   Transports need to be completely drained when
    switching from higher sulfur products to ULSD
   A flat bottom transport can present significant
    contamination issues when loading ULSD
   Sloped bottom transports had little if any
    contribution to contamination
   Draining compartments at the loading rack
    reduced flat bottom contamination
   Flushing compartments with ULSD prior to
    loading effectively removed any residual sulfur
    contamination in both transport types


                                                      16
Transport Operations Recommendations
   Transport operators will need to adopt
    procedures to protect ULSD quality
   Transport operators should consider
    complete drain down capability prior to
    loading ULSD
   More testing needs to be done




                                              17
Retail & Station Operations




                              18
      Objectives of Station Testing
   Determine how stations can successfully
    convert to ULSD from low sulfur diesel

   Ascertain the impact of manifolded
    underground storage tanks

   Establish if/when product stratification
    occurs



                                               19
           Station Testing Background
   Macon 5/31/04                       Louisville 4/16/04
       Truck Stop C                        Truck Stop A
       Truck Stop D                        Truck Stop B
       Normal Inventories                  Gas Station
                                            Minimized Inventories


        Samples were pulled from each station before and
        after drops
              Top, middle, and bottom samples from each tank
              A nozzle sample (random dispenser)



                                                                     20
                                Macon Station Tank Mixing
                                                                 Macon Area Stations
                                                            Tank Heel Mixing Tests - 5/31/04

               500




                                                                                                            429
               450




                                                                                                      426
                                                                                                424
                          Station Tank Nozzle




                                                      392
                                                387
                          Station Tank 1




                                                             380
               400

                          Station Tank 2
               350

                          Notes: The sulfur
               300
                       values shown as "After
Sulfur - ppm




                                                                                                                  Drop made
                        Drop" are averages of
                                                                                                                  into this tank
               250     top, middle and bottom
                              samples.                                         Drop made
                                                                               into this tank
                                                                        178
               200




                                                                                                                                       163.7
                                                                                                                         170
                                                                                     161




                                                                                                                               140.3
               150                                                            82.4


               100


               50


                0
                     Location                   Truck Stop C             Truck Stop C           Truck Stop D             Truck Stop D
                                                 Before Drop               After Drop            Before Drop               After Drop

                                                                                                                                               21
                     Louisville Station Tank Mixing
                                                                        Louisville Area Stations
                                                                     Tank Heel Mixing Tests - 4/16/04
               400




                                                                                                                                                355.5
                                                                                                                                  357
                                Station Tank Nozzle                                                Notes: The tank sulfur
               350                                                                                   values shown are
                                Station Tank 1                                                     averages of top, middle
                                                                                                  and bottom samples. No
                                Station Tank 2
                                                                                                  tank sample available for
               300                                                                                   SSA- Before Drop
                                Station Tank 3


               250
                                             208.3
Sulfur - ppm




               200
                                       177
                                      171



                                                     158.3




                                                                               147.7
                                                                                154
                                                                               149



               150
                                                              Drop made
                                                                                              1st drop made      2nd drop made
                                                              into this tank
                                                                                              into this tank     into this tank




                                                                                                                                                        90.9
               100
                                                                    63.5
                                                                41.8



                                                               38.6




                                                                                                    34.8
                                                                                                   28.5




               50
                                                             25.1




                                                                                                  23.3




                                                                                                                   22.7
                                                                                                                  19.6
                0                                                                                                 17.2
                     Location        Truck Stop A            Truck Stop A      Truck Stop B     Truck Stop B      Truck Stop B    Gas Station   Gas Station
                                     Before Drop              After Drop       Before Drop      After 1st Drop   After 2nd Drop   Before Drop   After Drop

                                                                                                                                                               22
Station Drop Volume Correlation
           % Drop Volume = Volume of Load Delivered
                           Total Inventory After Delivery

                 % Drop                              % Drop
MACON            Volume   Stratify?   LOUISVILLE     Volume      Stratify?
Truck Stop C                          Truck Stop A   * Indicates drop tank

Tank 1 *          58%      Slight     Tank 1 *         70%          No

Tank 2            49%       Yes       Tank 2           66%          No

Truck Stop D                          Tank 3           70%          No

Tank 1            63%       No        Truck Stop B
Tank 2            62%       No        Tank 1           86%          No

                                      Tank 2 *         77%          No

                                      Gas Station
                                      Tank 1*          25%         Yes
                                                                         23
       Station Mixing Calculations
   Average sulfur                     Actual   Calculated
                             Station   Sulfur     Sulfur
    content in UST before    Tank 1     ppm        ppm
                                                             % diff
    the drop                Truck       25.1       60.9      - 58%
   Inventory in tank       Stop A
    before the drop         Truck       34.6       42.6      - 23%
                            Stop B –
   Volume of ULSD load     Drop 1
   Sulfur content of       Truck       17.2       18.9      - 10%
    ULSD                    Stop B –
                            Drop 2
   Linear mixing           Truck       82.4     177.43      - 115%
    assumptions             Stop C
                            Truck      140.3      171.7      - 22%
                            Stop D
                                                                      24
          Station Observations
   Mixing does occur across manifolded
    tanks
   Stratification in USTs can occur if the drop
    volume is less than 60% of the final UST
    inventory
   Multiple drops into different tanks
    promote better mixing
   Stations should be able to successfully
    provide ≤ 15 ppm with planning multiple
    drops into each tank
                                                   25
      Station Recommendations
   Minimize inventory levels in tanks prior to
    receiving ULSD loads to minimize
    stratification
   Drop into each tank on site to promote
    mixing and quicker conversion
   Estimate number of loads necessary to
    convert a station using historical sulfur
    content, tank inventories, and site sales


                                                  26
CONCLUSION




             27

						
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