Post Office Box 1778 Goodlettsville TN 37070 1778 615 859 9980 Considerations of Deployment of Direct to Satellite Tank and SmartHome™ Monitoring Systems

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Post Office Box 1778 Goodlettsville TN 37070 1778 615 859 9980 Considerations of Deployment of Direct to Satellite Tank and SmartHome™ Monitoring Systems Powered By Docstoc
					   Post Office Box 1778
Goodlettsville, TN 37070-1778
       (615) 859-9980
Considerations of Deployment of
  Direct-to-Satellite Tank and
  SmartHome™ Monitoring
                  A Product Developed Over Time:

   16 Years in the making
   At an investment of $6.8 million
   Protected by 22 patent claims (domestic), Foreign
    claims through WIPO under PCT (Canada, Japan,
    China, Israel, Australia, Mexico, All countries of
    Western Europe, Brazil) (Additional patents pending)
   US & Foreign Copyrights
                         A Product Developed Over Time:

   Consulting with senior officials of:
        DirectTV
        EchoStar
        DishNetwork
        ISAT
        Axonn
        Loral
        AeroAstro
        GlobalStar
        Iridium
        SES Global
        SES Americom
        24 propane distribution companies
    SkyTracker™ History

 October 1988: First Transmissions – based on
  technology used at Hatfield Marine Institute
  (Smithsonian Magazine).
 1999: Century Propane Company affiliated
  with America‟s Family Entertainment (AFE).
  Began work on SkyTracker™.
 2002: NASCorp founded (acquired America‟s
  Family Entertainment).
    SkyTracker™ History
 In 2004 the first beta SkyTrackers™ were
  deployed. Today they have the equivalent of
  13 years of transmissions (Sagamore Gas &
  Appliance, National Gas Distributors, Lindens
 October 2005, First production model
  SkyTrackers™ released to Auxier Gas,
  National Gas Distributors, Sagamore Gas &
  Appliances, Farmer‟s Co-op, Salley‟s Propane,
  Propane Direct, Chapp & Bushy Oil Co. and
  Erie Shore Propane.
Shared With Industry Veterans
 Pat Walsh (FerrellGas) October 1988
 Wallace Willard (President-MPGA)1989-1996
 The late Milford Therrell (Squibb-Taylor)\
  May 1994
 4,200 NPGA Members - 2000
 24 independent propane dealers became
  stockholders of NASCorp - 2000
Industry Recognition
   NASCorp‟s SkyTracker™ is listed on both
    National PERC‟s Remote Tank Monitoring
    Matrix and NPGA‟s Marketer‟s Management
    Forum Telemetry Questionnaire. Both
    describe the Company, our commitment to the
    industry and many of the Remote Tank
    Monitoring Industries‟ firsts that
    SkyTracker™ offers.
   Today, SkyTracker™ is used by 400 gas
    distribution companies, public utilities, refined
    fuel dealers, and gas processing companies in
     48 states
     10 Canadian provinces
     Australia, Jamaica, Suriname, Puerto Rico,
      Honduras and Israel.
Transmits Data For

Government: NASA (White Sands Missile Test
 Center), NORAD, San Francisco International
 Airport, hundreds of federal and state DOT
 locations, dozens of schools in the U.S.,
 Canada and Australia.
Care facilities: Walter Reed Hospital, nursing
 homes, three dozen hospitals in Australia
 doctor‟s offices and urgent care facilities.
Transmits Data For
Commerce & Agriculture: Ruby Tuesday,
 Dunkin‟ Donuts, Hampton Inns, AmericInns,
 Wal-Mart, Home Depots, Flying J., Big Sur
 Lodge, Sandals Resorts, Telus, Cylinder and
 Motor Fuel Dispensers, Temp-Heat, Poultry,
 Grain Drying, Dairy Farming, Nurseries and
 Orchards and Irrigation engines.
Residences: Tiger Woods, Olin Browne, Nelly
 Furtado, Greg Norman, Chris Everett Lloyd
Credible Experience, Leadership

      First remote tank monitoring
       system to be made by propane
         dealers for propane dealers
      R. L. (Rick) Humphrey – Inventor

   Missouri University – Cape Girardeau, MO (BS –
    Marketing Management and Accounting; MBA –
    Architectural Engineering
   Advanced: Accounting, Law, Steven R. Covey (7
    Habits Trainer)
   Sears Roebuck Extension Institute
   Manager Trainee – Sears Roebuck & Company.
   Dunn & Bradstreet Credit and Financial
   Rode bobtail & tank setter at what is now AmeriGas‟
    Crystal City, MO facility with uncle, Lee White,
   Williams Energy Company (1973-1979)
      Retail Sales Manager
      National Director of Advertising & Promotion
         Contracted with Minnie Pearl, Grandpa Jones &
          George “Goober” Lindsay as national spokes-
      Director of National Accounts (Wendy‟s, Pizza Hut,
       GTE, Ford, GM, Union Electric, Ponderosa, GE,
       KOA, City of San Carlos, NASA)
   Buckeye Gas Products Company (1979-
     Grand Rivers Division Manager (leader in
      acquisitions of 200+ independent propane dealers)
     Gas Check Trainer (300 service techs)

   FerrellGas (1986-1990)
     Grand Rivers Region Manager
     32 locations, 35 MM gallons, $6.9M EBITDA
     Century Propane Company, Inc.
   Start-ups:                   Acquisitions:
       Cape Girardeau, MO           Discovery Propane, AZ
       Potosi, MO                   E-Z Stop Propane, AZ
       Saint Genevieve, MO          Kilarney Gas, MO
       Paris, MO                    Bass Gas (IN)
       Ironton, MO                  Burna Propane, KY
   12,000 End Users                 Jim Thomas Propane, KY
                                     S & S Propane, TN
   10 MM Gallons
                                     Claire Gas, MO
   32 Vehicle Fleet
                                     Dawson‟s, MO
   Truck Fabrication Shop
   IPGA – Presidential Appointee (1983-1986)
   MPGA – Director (1986-1998)
   NPGA (1983-present):
       Market Development Committee
       Consumer Focus Committee
       Governmental Affairs Committee
   Author of PERC legislation (1989-1992).
   Sponsored first PERC Congressional Bills (MO-
    PERC) 1993.
   1st PERC Chairman (MO PERC) 1993-1997.
    Through Experience, Humphrey
 Degree  Day/Julian Day scheduling only
  accurate for 75% of end users
  – Resulting in Wasted Stops/Wasted Trips
  – While other customers ran out of fuel
  – 85% of accidents occur when the customer has run
    out of gas
 That meter gas systems were inefficient and
  incurred gas losses
 “Milk-Man” or “Drive-By” propane delivery
  was equally inefficient
A Better Way……….
   Efficient tank routing through…
   Accurate remote-tank monitoring over…
   100% geographic coverage with…
   Nothing to install inside the customers‟ home or
    business, allowing…
   Consumption billing, eliminating gas losses,
    wasted trips, out-of-gas incidents and accidents

Resulting in dependable fuel deliveries
The Team That Built:
   NASCorp Board Of Directors
• Dwayne McKinney, Vice-President Chair – Marketing
• Mayor Danny Leverette, Secretary
• Joe Crocitto, Treasurer (United States Army)
• Dennis Moreno, Director & Chair – Administration (TN Titans)
• Dan Smith, Director & Chair – Technical Standards (ADI)
• Robert (Bob) Shannon, Director (The Shannon Group)
• Charley Hutchins, Director (Sagamore Gas & Past President of
• R. L. (Rick) Humphrey, Chairman

Advisors:      Ephriam Hoover III (Hoover, Inc.)
               Gaylord Cole (Cracker Barrel & Logan‟s Road House)
              Key Employees
• Marty Brasher – Director; Operations and Technical
  Services (formerly Production Manager for Nissan)
• Cathy Story – Director; Accounting
• Tabitha Martin – Account Executive Western US and
• Tony Ginnetti – Account Executive Eastern US,
  Canada, and Australia
• Nancy A. Burnett – General Counsel (licensed in NY
  and TN)
       Why Consider Remote-tank
 Defray delivery costs ($200.00 barrels predicted)
 Improved safety because higher prices = customer
  working off tank bottom = out-of-gas incidents =
  85% of industry accidents
 Improved Customer Service = “Dependable tank
  monitoring & refilling” which is the second most
  important requirement of end-users, per State of
  the Industry Survey (LP Gas Magazine)
    What Retailers Say Their Customers
               Value Most :                     1

 “Quick response to problems”
 “Dependable tank monitoring and refilling”
 “Flexible payment options” (Consumption
 “Predictable prices”
 “Lower prices”

1 State
      of the industry Survey (of propane dealers) as compiled by LP-Gas
A Compilation from the Survey
   Annual cost of propane delivery service
    (per end-user)
   1M – 2M Gallon Distribution Plants
   $5.00 per gallon Diesel

Derived from: State of the Industry Survey LP-Gas
Average bobtail miles driven annually per customer


               34.8                              34.0
30                     Assumed          31.9






     500     500-     1,000- 2,000- 4,000-     6,000
             999      1,999 3,999 5,999
Vehicle Costs

    Assuming 33 miles:
     33 ÷ 4.5 MPG = 7.33 gal x $5.00 =……………... $36.65

    $100,000. Vehicle cost - $10,000. Salvage ÷
     $90,000.÷ 5 yr. = $18,000. ÷ 2,000 customers=……. 9.00

    Insurance ($1,500.),Taxes & License ($400.)
     Maintenance/Tires/Oil ($3,100.00)+$5,000
      ÷ 2000 customers = ……………………………                 2.50

    Average Annual Vehicle cost per customer…….    $48.15
Cost of Drivers:

Wage $14.03 p/hr. x 2,080 hrs =………………………         $ 29,182.40
FICA $29.182 X 7.65% =………………………………                  2,232.45
FUTA & State ($11,000 X 4.5%) =…………………….              495.00
Workers Comp ($8.00 p/c) =…………………………                2,378.00
Uniform Allowance =………………………………….                     400.00
Medical Insurance (Co Pay 82.4%) =…………………           3,955.20
Periodic Training/Certification/DOT =…..…………          500.00
Retirement Comp 4% =……………………………….                   1,167.30

Total Driver Cost =                              $ 40,260.35
Customers                                           ÷ 891___
Total Driver Cost Per Customer                 $       45.19
Other Costs
Of course, back office support, your executive’s salary, and a return
on-investment from your customer tank assets, bulk-plant and
service vehicles must still be included:

Customer Service Representative @10.00 per hour plus taxes
and some benefits $24,847.20 per year or $12.43 per
hour divided by 891 customers                                       $   29.01

Executive Salary, taxes and benefits (double the driver)            $   90.38

ROI on bulk plant investment, inventory, 891 customer
storage tanks, A/R, furnishings, tools, technology
Deployment, etc.                                                    $ 237.34
      Annual Per Customer Cost:
Vehicle Expense                    $ 48.15
Driver Cost                          45.19
Back-Office Support                  29.01
Executive Management                 90.38
ROI on Customer Total Assets       $237.34

Total Cost Per Customer Per Year   $450.07
      Change How You Do Business
    No matter how you cut this figure, for a residential
    customer, your cost per stop is well over $75.00. In
    fact, it is over $100.00 per stop. The task today is to
    reduce the number of stops per year. It means:
   No more wasted trips.
   It means knowing what the propane level is in your
    customer‟s tank before the truck leaves the plant yard.
   It means efficient deployment despite imperfect tools,
    seasonality of business, vastly different resources, etc.
   And it requires the most important element:
    leadership by you.
Is The Business Tool
              of Leaders……..
          Six Relevant Areas That Must be Done Well.
                    Controls Costs Through:

   Effective scheduling and routing
   Performance Management System
   Effective Customer Order Management System
   Customer Relations & Proper Tank Sizing
   Efficient Resource Deployment
   Efficient Operating Models

(Ask your NASCorp Account Executive for Details)
      Proven Solutions That Work
   Effective Leadership
   Use of Information Technology
   Increase gallons per Bobtail
   Perfect the Predicted Demand System
   Manage the Will Call Customer
   Attract and Retain Quality Drivers
   Effective Product Pricing
   Implement Performance Management
   Choose Vendors that are Seamless
   Train and Change
(Ask your NASCorp Account Executive for Details)
Why Consider SkyTracker™?
   Installs in under 3 minutes on ASME tanks
   Does not require appointment with customer or
    conversion of customer‟s digital phone back to
    outdated analog
   100% coverage – North America
   95% coverage – Worldwide
   Nothing inside customer‟s home or business
Why Consider SkyTracker™?
 It does not interfere with 911 emergency calls.
 Data received through multi-lingual website, cell
  phone, downloadable files and API
 Security of transmissions, data storage and website
 SkyTracker™ Subscriber‟s Trust Agreement (SSTA)
 SkyTracker™ will not require change out when
  analog competitor‟s equipment becomes obsolete due
  to government mandate requiring digital signal
  (cellular control channel)
A Closer Look…….
       SkyTracker™ Engineering
   Firmware Engineering
   Software Engineering
   Equipment Engineering
   Server Engineering
   Service Engineering
   Revenue Engineering
   Third-Party Compliance & Audit Reviews
SkyTracker™ Firmware Engineering
   Standard Reporting – When tank is filled, at 10% drop,
    critical lows, out-of-ordinary events (stuck float, end-user
    away from home, excessive use), and every third day
   Optional Reporting – Daily or Twice per day, Vertical
    (linear) tank, Bulk/Transport storage (10,000 W.C. – 90,000
    W.C.), Capacitance (non-pressurized fluids)
   Ground Station 10x Amplification of SkyTracker™
    transmission will enhance coastal areas (Fall 2008) – will
    apply to all units currently in the field
SkyTracker™ Software Engineering
   Supports Copyrighted Multi-Lingual (English, Spanish,
    French, Russian, Portuguese) Website
   1.6 Million Copyrighted Lines of Code (26,000 pages)
   Patented Color-Coded Data Displays for “at-a-glance”
   Escrowed into SkyTracker™ Subscribers Trust Agreement
   Long Term Agreements with software vendors
   Reviewed by Audit and Compliance Group
   Backed-up every 30 seconds (active and passive servers) with
    daily tape back-up and 30 day disc back-up for escrow
NASCorp “Firsts”
 NASCorp is the first in the industry to offer an
  API so dealers can merge SkyTracker™ data
  with their own accounting or routing software
  through their providers of that service.
 Another NASCorp first is the ability of
  NASCorp dealers to recover their tank level
  information over their cell phone (any
  Windows®-based smart phone design).
SkyTracker™ Demo Log-In Info.
To see current „live‟ color-coded satellite tank data at existing
  end-user locations:
 Go to
 Click “Welcome” in the language of your choice and the log-
  in page will appear
 Enter “skytracker@demo” (without the quotations) for the
  Username and enter “demo” (without the quotations) for the
  Passcode. The color-coded tank levels page will appear on
  your screen
 Be sure to further click on “Details” and “Graph” (Elmer
  Gantry being the most active) and also check out the routing
  and sorting features
SkyTracker™ Equipment Engineering

   Patented Degree-Day & Julian Day
    Recorders on Board
   Transmits Data in the Noise Spectrum (non-
    detectable, non-decodable)
   6 Fleets of 8 LEO satellite pass overhead
    every 300 seconds
   Polls for change every hour 24/7/365
    (Transmits changes and every third day
    (Standard Reporting Plan)).
SkyTracker™ Equipment Engineering

   Enclosure is made of ballistic plastic, UV
    rated, fire-retardant materials.
   Antenna designed by Mark Ingals, engineer
    for XM-Radio and GM OnStar’s satellite
   Two Greenwich clocks – Tracks time zone
    and satellite time (20 year service life on
    clock batteries)
   Two super-caps for power-up assurance
SkyTracker™ Equipment Engineering

   Self-contained – nothing to install in the
    customer’s home or business
   Battery installs in field with Phillips
    screwdriver (optional power supplies
   ETL, UL & ANSI rated for use with hazardous
    materials specifically in environments
    were propane is present.
     SkyTracker™ Server Engineering
   NASCorp has designed and developed the fastest and most
    unique Web applications in the industry and backed them up
    with NASCorp‟s own IBM X-Series servers for the most
    secure redundant data storage, not only in the industry, but in
    almost any industry. In short, we offer the safest and most
    secure data transmissions, storage and recovery systems in the
   Level(3) Co-Location Center - Under Armed Guard
   Duplicate Power Grids
   Multiple Internet Pipes
   Escrowed into SSTA
   Reviewed by Audit & Compliance Group
          SkyTracker™ Servers
 IBM X-Series Machines
 Six in Cluster
 Active-Passive Servers with three back-ups
 Sixth server for API
 IBM Guarantee (99.999% up-time, 2 hours maximum
 Other servers come on-line if one or more fail, so
  virtually no down-time for propane distributors or
  their end users
 Escrowed into SSTA
 Reviewed by Audit & Compliance Group
SkyTracker™ Service

   Same Day Responses
   100% Testing
   SSTA
   Reviewed by Audit & Compliance Group
   NASCorp offers “live” tech support, both
    for equipment and Web application.
    NASCorp‟s competitors primarily utilize
    LP gas equipment distributors, so direct
    customer support is non-existant.
Revenue Engineering
For dealers, SkyTracker™ pays for itself
through operating expense reductions and
true dealer revenue-generating services,
i.e.; Web page access by end-users and
SkyHelp Services™, API, consumption
billing, etc.
Revenue Generation
   End-user Website Access........................................    $9.99-24.99
   “Never Out” Programs……………………………                                       Varies
   SkyHelp™ Services (Indoor)
      Indoor Low Temperature…………...................                         $9.99
      LowTemp and C3H8 Leak..……………………                                     $14.99
      LowTemp, C3H8 Leak & CO Detection………                           $19.99-24.99
   SkyHelp™ Services (Outdoor)
      Outdoor Low Temperature…………................                          $9.99
      LowTemp with 1 Murphy switch……………..                                 $24.99
      LowTemp w/ 2 Murphy switches……………..                            $29.99-39.99
   Consumption Billing (meter charge)………………                          $10.99-19.99
Consumption Billing
   Another First for NASCorp is our development of an
    effective method of consumption billing which:
      Eliminates wasted stops saving time, energy, fuel
       and wear and tear on trucks
      Dealer retains ownership of the fuel at end-user
      End-users pay only for the fuel they use each
      Offered in conjunction with API or Excel
       Downloadable Files
NASCorp Third-Party Audit &
Compliance Checks
   Another industry first is that NASCorp backs
    all of this up with The Compliance and Audit
    Group, a third-party company which provides
    computer privacy and security auditing,
    education and consulting, as part of our
    ongoing effort to maintain and continually
    improve the safety and security of our
    customer‟s data.
New Developments
   NASCorp‟s ongoing commitment to the
    refinement of SkyTracker™ hardware,
    software and Web applications is
    unprecedented. SkyTracker™ has been
    adapted for extended life battery power, 12v.
    sources, power displays, variant tank gauges,
    vertical tank level gauges, refined fuel gauges,
    capacitance gauges, cryogenic solutions and
    solar adaptation
          Final Considerations
 A technology base today positions you to take
  on additional benefits tomorrow
 Eases the “shock” for your employees, your
  customers, and on your P&L and Balance
 It adds to more than your bottom line though
  market advantage, image and customer and
  employee perception
     Final Considerations continued
   The costs of lost opportunities in not making a
    decision are simply too high. To wait for the
    cost to come down will mean you will pay the
    same as if you had the technology (due to
    inefficient operations) and still not have the
    technology. Costs will not come down enough
    to offset the current value of operating savings
    you can realize today.
SkyTracker™ tank monitoring. Its
reliable and cost effective.
Ask About NASCorp’s Blanket Purchase Order
  Quantity Discounts (100 units+)
 Equipment
 Activation
 Monitoring
 Ancillary Items
 Payment Terms
 Limited Three (3) Year Warranty
 Business Rules
Payment Terms
 Net 20 days from NASCorp date of
 Warranty items will be handled outside
  and separate of payment terms
 Quantity Discounts Example

Quantity (12    Equipment (ii)         Activation              Monitoring                  Total Quantity
   Months)     (Reg. $314.99)(iv)     (Reg. $39.99)            (Reg. $4.00)                     Discounts

   1,000          $15.00/$15,000.00    $20.00/$20,000.00    Waived 1st 3 mos./$12,000.00          $47,000.00

   2,500          $15.00/$37,500.00    $25.00/$62,500.00    Waived 1st 3 mos./$30,000.00         $130,000.00

   5,000          $15.00/$75,000.00   $25.00/$125,000.00    Waived 1st 3 mos./$60,000.00         $260,000.00

   10,000        $15.00/$150,000.00   $30.00/$300,000.00   Waived 1st 3 mos./$120,000.00         $570,000.00

   20,000        $25.00/$500,000.00   $30.00/$600,000.00   Waived 1st 4 mos./$320,000.00       $1,420,000.00
• Quotes Good for 30 days
• All sales subject to Business Rules.
• Includes SkyTrackerTM, base plate, tape, hall sensor-cable,
  standard Battery Pack, 12 volt capability, Rochester Jr. or Sr.
  Remote-Ready dials.
• All terms are net 20 (days). First and last months monitoring fee will
  be collected at the time of order. Last month monitoring fees placed
  in the SSTA.
• Bulk/Transport Storage (Plant) SkyTrackerTM is $399.99
  (equipment). Monthly monitoring is $14.99. Qualifies for quantity
  discounts based on the above schedule.
Member of:
•   National Propane Gas Association
•   Western States Petroleum Marketer’s Association
•   Association of The United States Army
•   Missouri Propane Gas Association
•   Illinois Propane Gas Association
•   Texas Propane Gas Association
•   Michigan Propane Gas Association
•   Tennessee Propane Gas Association
•   Kentucky Propane Gas Association
•   Minnesota Propane Gas Association
•   Propane Gas Association of Canada

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