Chris CreelDirector of Fleet Services - McPherson Oil Products

Atlanta Distribution

Total Petroleum Equipment

Founded in 1971 by Charles K. McPherson Sr.

Grown to over 250 employees

Largest independent of distributor of industrial and commercial lubricants in Southeast

Corporate office in Trussville, Alabama

Over 100 trucks in the company fleet

Annually distribute over 12 million gallons of total lubes and 250 million gallons of fuel

Over 5 million gallons of bulk lubricants are delivered via railcar

Remainder handled via McPherson owned over-the-road truck fleet

McPherson Corporate manages over 3,500 orders per month/lubes through 8 locations in Alabama, Florida, Georgia, Mississippi and Tennessee.

Plant covers over 4 acres

Strategically located to service our customers

State of the art Rail Car Delivery facility

1,000,000 gallon bulk oil storage

Distributes over 6 million gallons annually in bulk lubricants

Process over 100 orders per day

Lubricants

Bulk Fuels

Fuelman (Fuel Management System)

Fixed Fuel Contracts

McClean (Used Oil/ Filter Service)

Total Petroleum Equipment

Lubricants

McPherson Oil offers a complete line of lubricants from ExxonMobil, BP/Castrol, Kendall and our own private label, Proteck.

This complete line offers our customers the opportunity to purchase the high price products that offer extended drain capability as well as the lower price high quality products that fit within the customer’s particular budget requirements.

McPherson uses the highest quality control procedures to insure that the products delivered are of the highest quality.

Bulk Fuels

McPherson Oil has the capability to deliver bulk fuels all over the Southeast.

Whether your needs are truck transports (7,500 gallons) or tankwagon (500 +), McPherson Oil can suit your needs.

Prices are quoted from the lowest rack at the nearest terminal.

McPherson Oil is capable of pulling fuel from multiple terminals in times of fuel shortages.

Fuelman

McPherson Oil is the exclusive provider of Fuelman, a unique fuel management system that offers total security, accountability and control for all of your fueling needs including on site and off site fuel.

In addition, the Fuelman card is also accepted for normal maintenance services and we can set up your cards to accept charges for oil changes, wiper blades, etc.

Fixed Fuel Contracts

McPherson Oil has the capability to offer fixed fuel contracts to our customers.

A fixed fuel contract is a fantastic budgetary tool that helps a customer take their biggest variable cost and make it a fixed cost.

Ask us for more detail such as caps, fences, etc.

McClean Services

McClean Services is McPherson Oil’s answer to your environmental concerns/needs.

McClean will pick up used oil and/or filters.

We can also offer waste water and used antifreeze removal service.

Also, ask us for a copy of our insurance and state license for your records. McPherson Oil carries an 11million dollar single incident liability insurance to protect our customers.

Total Petroleum Equipment

Our company, Total Petroleum Equipment, will assist with lubrication equipment installations, designs and repairs.

McPherson Oil is able to offer speedy and flexible service to lubrication equipment because these are professional, McPherson Oil employees that only service McPherson Oil customers.

Total Petroleum Equipment Company

In light of current economic conditions and the threat of rising fuel prices fleet operators are looking for ways to lower fuel cost.

Many are considering onsite fuel tanks and see this as a lower cost alternative to purchasing fuel at retail.

However there are several cost factors that must be considered pursuing this option.

•Installation Costs

•Maintenance Costs

•Environmental Risks

•Tightening Governmental Regulations.

In the past 15 years installation cost have sky rocketed. Installation of a $12K above ground or below ground tank have gone from around $25K to over $75K.

Customers need to consider return on investment before making costly long term investments. Unless volume is extremely high it can take years before you reach a break even point on the initial investment.

One of the costs that is seldom considered is ongoing maintenance and management costs.

Someone must be responsible for ordering fuel and maintaining fuel depot.

Loading and unloading area must be kept clean and any spilt fuel must be cleaned in order to avoid soil contamination.

Inspection of containment areas must be done daily to avoid collection of rain water to avoid costly disposal of water that could be contaminated by just a little bit of fuel. EPA estimates that 1 gallon of oil can contaminate 1 million gallons of water.

Pumps, dispensers and nozzles have to be maintained. Minor service calls can cost hundreds of dollars.

Environmental Risks include contamination of soil and water.

Remediation of soil just from poor house keeping or minor spills can cost $5K to $15K depending on soil conditions and requires proper notification to environmental agencies.

If leak or spill reaches an above ground or underground water source clean up costs can easily reach $25K and up.

It just takes one careless act to point our flaws in your containment areas.

Regulations can change at any time. The last big round of changes came in 1998.

Existing tanks had to come into compliance or be shut down.

Just recently in Georgia we are seeing additional requirements being applied, thus leading to more costly installations.

Spills and contamination arising from recent hurricanes have directly impacted the cost to install tanks onsite, and increased funding for environmental agencies means that enforcement of these rules and regulations are impacting those that had been overlooked in the past.

For those of you that currently have tanks or are considering installing tank it is important to take appropriate action to prevent or reduce chance of contamination.

Prevention is the key so I want to cover a few items that you should know.

The best way to keep the environmental agencies in to keep up with reporting and storage requirements.

Prevent, Detect and Correct

All Underground Storage Tanks must have leak detection, spill overfill and corrosion protection and you must take corrective action in response to leaks.

Included in this tank owners must show financial responsibility for cleaning up a leak and compensating people for bodily injury and property damage. You will need $500,000 or $1 million in “per occurrence” coverage and either $1 million to $2 million in “aggregate” coverage depending on your ownership category.

Leak Detection

Requires monthly monitoring of tanks and piping or inventory control plus tank tightness testing. Good only for first 10 years after installation.

Spill and overflow protection

Catchment basins and automatic shut off devices or over fill alarms or ball float valves.

Corrosion Protection

Coated and Cathodically protected steel or Fiberglass reinforced plastic or steel tank clad with FRP.

Reporting

It is kind of like SEC football. Better to report an incident than for the EPA to find one.

If you suspect a leak due to monthly leak detection or tightness testing you should test again and or have a professional perform their own test. You are required to notify your regulatory authority.

If a leak is determined act immediately to stop the leak. empty the tank, assess damage to the environment and begin cleanup.

Spills of less than 25 gallons do not have to be reported if you immediately contain and clean up the release.

Record Keeping

It is important to keep all records to show to an inspector during an on-site visit.

Records should show leak detection results for the past year and the most recent tightness test, copies of performance claims by leak detection manufactures, records of recent calibration of on-site leak detection equipment and records of required inspections and tests of your corrosion equipment and you must keep the current years tank registration with the state. Additionally you will need copies of Financial Responsibility and all tank closure documents must be kept for 3 years.

This presentation is not meant to scare any of you that currently have tanks or those that are considering purchasing tanks. It is meant to inform you of what needs to be done to prevent a release and costly penalties and fines from regulatory agencies.

After all as I mentioned earlier I am in the tank business. But a large part of that includes educating and consulting our customers concerning tank ownership.

Properly managed tanks will not threaten our health or environment. I hope that this has been informative and at the very least will lead to a review of your current management practices.

Total Petroleum Management

Contact Information

www.mcphersonoil.com

McPherson Oil: 888-802-7500

Chris Creel ext. 8821

ccreel@mcphersonoil.com