economics of technology - remote tank monitoring

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Post Office Box 1778 Post Office Box 1778 Goodlettsville, TN 37070-1778 Goodlettsville, TN 37070-1778 (615) 859-9980 (615) 859-9980

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Page 1: Economics of Technology - Remote Tank Monitoring

Post Office Box 1778Post Office Box 1778

Goodlettsville, TN 37070-1778Goodlettsville, TN 37070-1778

(615) 859-9980(615) 859-9980

Page 2: Economics of Technology - Remote Tank Monitoring

Considerations of Deployment ofDirect-to-Satellite Tank and SmartHome™ Monitoring

Systems

Page 3: Economics of Technology - Remote Tank 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

Page 4: Economics of Technology - Remote Tank Monitoring

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

Page 5: Economics of Technology - Remote Tank Monitoring

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).

Page 6: Economics of Technology - Remote Tank Monitoring

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 Propane).

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.

Page 7: Economics of Technology - Remote Tank Monitoring

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

Page 8: Economics of Technology - Remote Tank Monitoring

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.

Page 9: Economics of Technology - Remote Tank Monitoring

SkyTracker™

Today, SkyTracker™ is used by 400 gas distribution companies, public utilities, refined fuel dealers, and gas processing companies in …48 states10 Canadian provincesAustralia, Jamaica, Suriname, Puerto Rico,

Honduras and Israel.

Page 10: Economics of Technology - Remote Tank Monitoring

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.

Page 11: Economics of Technology - Remote Tank Monitoring

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

Page 12: Economics of Technology - Remote Tank Monitoring

Credible Experience, Leadership

First remote tank monitoring system to be made by propane

dealers for propane dealers

Page 13: Economics of Technology - Remote Tank Monitoring

R. L. (Rick) Humphrey – InventorR. L. (Rick) Humphrey – Inventor

Missouri University – Cape Girardeau, MO (BS – Missouri University – Cape Girardeau, MO (BS – Marketing Management and Accounting; MBA – Marketing Management and Accounting; MBA – Architectural EngineeringArchitectural Engineering

Advanced: Accounting, Law, Steven R. Covey (7 Advanced: Accounting, Law, Steven R. Covey (7 Habits Trainer)Habits Trainer)

Sears Roebuck Extension InstituteSears Roebuck Extension Institute Manager Trainee – Sears Roebuck & Company.Manager Trainee – Sears Roebuck & Company. Dunn & Bradstreet Credit and Financial Dunn & Bradstreet Credit and Financial

ManagementManagement

Page 14: Economics of Technology - Remote Tank Monitoring

Rode bobtail & tank setter at what is now AmeriGas’ Rode bobtail & tank setter at what is now AmeriGas’ Crystal City, MO facility with uncle, Lee White, Crystal City, MO facility with uncle, Lee White, (Albright-White) (Albright-White)

Williams Energy Company (1973-1979)Williams Energy Company (1973-1979) Retail Sales ManagerRetail Sales Manager National Director of Advertising & PromotionNational Director of Advertising & Promotion

Contracted with Minnie Pearl, Grandpa Jones & Contracted with Minnie Pearl, Grandpa Jones & George “Goober” Lindsay as national spokes-George “Goober” Lindsay as national spokes-personspersons

Director of National Accounts (Wendy’s, Pizza Hut, Director of National Accounts (Wendy’s, Pizza Hut, GTE, Ford, GM, Union Electric, Ponderosa, GE, GTE, Ford, GM, Union Electric, Ponderosa, GE, KOA, City of San Carlos, NASA)KOA, City of San Carlos, NASA)

Page 15: Economics of Technology - Remote Tank Monitoring

Buckeye Gas Products Company Buckeye Gas Products Company (1979-1986)(1979-1986) Grand Rivers Division Manager (leader in Grand Rivers Division Manager (leader in

acquisitions of 200+ independent propane dealers)acquisitions of 200+ independent propane dealers) Gas Check Trainer (300 service techs)Gas Check Trainer (300 service techs)

FerrellGas (1986-1990)FerrellGas (1986-1990) Grand Rivers Region ManagerGrand Rivers Region Manager 32 locations, 35 MM gallons, $6.9M EBITDA32 locations, 35 MM gallons, $6.9M EBITDA

Page 16: Economics of Technology - Remote Tank Monitoring

Century Century PropanePropane Company, Inc. Company, Inc.

Start-ups:Start-ups: Cape Girardeau, MOCape Girardeau, MO Potosi, MOPotosi, MO Saint Genevieve, MOSaint Genevieve, MO Paris, MOParis, MO Ironton, MOIronton, MO

12,000 End Users12,000 End Users 10 MM Gallons10 MM Gallons 32 Vehicle Fleet32 Vehicle Fleet Truck Fabrication ShopTruck Fabrication Shop

Acquisitions:Acquisitions: Discovery Propane, AZDiscovery Propane, AZ E-Z Stop Propane, AZE-Z Stop Propane, AZ Kilarney Gas, MOKilarney Gas, MO Bass Gas (IN)Bass Gas (IN) Burna Propane, KYBurna Propane, KY Jim Thomas Propane, KYJim Thomas Propane, KY S & S Propane, TNS & S Propane, TN Claire Gas, MOClaire Gas, MO Dawson’s, MODawson’s, MO

Page 17: Economics of Technology - Remote Tank Monitoring

AssociationsAssociations

IPGA – Presidential Appointee (1983-1986)IPGA – Presidential Appointee (1983-1986) MPGA – Director (1986-1998)MPGA – Director (1986-1998) NPGA (1983-present):NPGA (1983-present):

Market Development CommitteeMarket Development Committee Consumer Focus CommitteeConsumer Focus Committee Governmental Affairs CommitteeGovernmental Affairs Committee

Author of PERC legislation (1989-1992).Author of PERC legislation (1989-1992). Sponsored first PERC Congressional Bills (MO-Sponsored first PERC Congressional Bills (MO-

PERC) 1993.PERC) 1993. 11stst PERC Chairman (MO PERC) 1993-1997. PERC Chairman (MO PERC) 1993-1997.

Page 18: Economics of Technology - Remote Tank Monitoring

Through Experience, Humphrey Through Experience, Humphrey Concluded:Concluded:

Degree Day/Julian Day scheduling only Degree Day/Julian Day scheduling only accurate for 75% of end usersaccurate for 75% of end users– Resulting in Wasted Stops/Wasted TripsResulting in Wasted Stops/Wasted Trips– While other customers ran out of fuelWhile other customers ran out of fuel– 85% of accidents occur when the customer has run 85% of accidents occur when the customer has run

out of gasout of gas

That meter gas systems were inefficient and That meter gas systems were inefficient and incurred gas lossesincurred gas losses

““Milk-Man” or “Drive-By” propane delivery Milk-Man” or “Drive-By” propane delivery was equally inefficientwas equally inefficient

Page 19: Economics of Technology - Remote Tank Monitoring

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

Page 20: Economics of Technology - Remote Tank Monitoring

The Team That Built:

Page 21: Economics of Technology - Remote Tank Monitoring

NASCorp Board Of DirectorsNASCorp Board Of Directors

• Dwayne McKinney, Vice-President Chair – Marketing Dwayne McKinney, Vice-President Chair – Marketing (Pegasus/DirecTV)(Pegasus/DirecTV)

• Mayor Danny Leverette, SecretaryMayor Danny Leverette, Secretary• Joe Crocitto, Treasurer (United States Army)Joe Crocitto, Treasurer (United States Army)• Dennis Moreno, Director & Chair – Administration (TN Titans)Dennis Moreno, Director & Chair – Administration (TN Titans)• Dan Smith, Director & Chair – Technical Standards (ADI)Dan Smith, Director & Chair – Technical Standards (ADI)• Robert (Bob) Shannon, Director (The Shannon Group)Robert (Bob) Shannon, Director (The Shannon Group)• Charley Hutchins, Director (Sagamore Gas & Past President of Charley Hutchins, Director (Sagamore Gas & Past President of

IPGA)IPGA)• R. L. (Rick) Humphrey, ChairmanR. L. (Rick) Humphrey, Chairman

Advisors:Advisors: Ephriam Hoover III (Hoover, Inc.)Ephriam Hoover III (Hoover, Inc.)Gaylord Cole (Cracker Barrel & Logan’s Road House)Gaylord Cole (Cracker Barrel & Logan’s Road House)

Page 22: Economics of Technology - Remote Tank Monitoring

Key EmployeesKey Employees

• Marty Brasher – Director; Operations and Technical Marty Brasher – Director; Operations and Technical Services (formerly Production Manager for Nissan)Services (formerly Production Manager for Nissan)

• Cathy Story – Director; AccountingCathy Story – Director; Accounting• Tabitha Martin – Account Executive Western US and Tabitha Martin – Account Executive Western US and

InternationalInternational• Tony Ginnetti – Account Executive Eastern US, Tony Ginnetti – Account Executive Eastern US,

Canada, and AustraliaCanada, and Australia• Nancy A. Burnett – General Counsel (licensed in NY Nancy A. Burnett – General Counsel (licensed in NY

and TN)and TN)

Page 23: Economics of Technology - Remote Tank Monitoring

Why Consider Remote-tank Why Consider Remote-tank Monitoring…Monitoring…

Defray delivery costs ($200.00 barrels predicted)Defray delivery costs ($200.00 barrels predicted) Improved safety because higher prices = customer Improved safety because higher prices = customer

working off tank bottom = out-of-gas incidents = working off tank bottom = out-of-gas incidents = 85% of industry accidents85% of industry accidents

Improved Customer Service = “Dependable tank Improved Customer Service = “Dependable tank monitoring & refilling” which is the second most monitoring & refilling” which is the second most important requirement of end-users, per important requirement of end-users, per State of State of the Industry Survey the Industry Survey (LP Gas Magazine)(LP Gas Magazine)

Page 24: Economics of Technology - Remote Tank Monitoring

What Retailers Say Their Customers What Retailers Say Their Customers Value MostValue Most11::

““Quick response to problems” Quick response to problems” ““Dependable tank monitoring and refilling” Dependable tank monitoring and refilling”

““Flexible payment options” (Consumption Flexible payment options” (Consumption

Billing)Billing) ““Predictable prices”Predictable prices” ““Lower prices” Lower prices”

1 1 State of the industry Survey (of propane dealers) as compiled by State of the industry Survey (of propane dealers) as compiled by LP-Gas LP-Gas MagazineMagazine

Page 25: Economics of Technology - Remote Tank Monitoring

A Compilation from the Survey Assumes:

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 Magazine

Page 26: Economics of Technology - Remote Tank Monitoring

Average bobtail miles driven annually per customer

0

5

10

15

20

25

30

35

40

45

500 500-999

1,000-1,999

2,000-3,999

4,000-5,999

6,000

44.2

34.833.0Assumed

28.5

31.9

34.0

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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 ====

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Cost of Drivers:Cost of Drivers:

Wage $14.03 p/hr. x 2,080 hrs =……………………… $ 29,182.40Wage $14.03 p/hr. x 2,080 hrs =……………………… $ 29,182.40FICA $29.182 X 7.65% =……………………………… 2,232.45FICA $29.182 X 7.65% =……………………………… 2,232.45FUTA & State ($11,000 X 4.5%) =……………………. 495.00FUTA & State ($11,000 X 4.5%) =……………………. 495.00Workers Comp ($8.00 p/c) =………………………… 2,378.00Workers Comp ($8.00 p/c) =………………………… 2,378.00Uniform Allowance =…………………………………. 400.00Uniform Allowance =…………………………………. 400.00Medical Insurance (Co Pay 82.4%) =………………… 3,955.20Medical Insurance (Co Pay 82.4%) =………………… 3,955.20Periodic Training/Certification/DOT =…..………… 500.00Periodic Training/Certification/DOT =…..………… 500.00Retirement Comp 4% =………………………………. Retirement Comp 4% =………………………………. 1,167.301,167.30

Total Driver Cost = Total Driver Cost = $ 40,260.35 $ 40,260.35 Customers Customers ÷ 891___÷ 891___Total Driver Cost Per CustomerTotal Driver Cost Per Customer $ 45.19 $ 45.19

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Other CostsOther Costs

Of course, back office support, your executive’s salary, and a returnOf course, back office support, your executive’s salary, and a returnon-investment from your customer tank assets, bulk-plant andon-investment from your customer tank assets, bulk-plant andservice vehicles must still be included:service vehicles must still be included:

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

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

ROI on bulk plant investment, inventory, 891 customer ROI on bulk plant investment, inventory, 891 customer storage tanks, A/R, furnishings, tools, technology storage tanks, A/R, furnishings, tools, technology Deployment, etc.Deployment, etc. $ 237.34$ 237.34

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Annual Per Customer Cost:Annual Per Customer Cost:

Vehicle Expense Vehicle Expense $ 48.15$ 48.15Driver CostDriver Cost 45.19 45.19Back-Office SupportBack-Office Support 29.01 29.01Executive Management Executive Management 90.38 90.38ROI on Customer Total Assets ROI on Customer Total Assets $$237.34237.34

Total Cost Per Customer Per YearTotal Cost Per Customer Per Year $450.07 $450.07 ==========

Page 31: Economics of Technology - Remote Tank Monitoring

Change How You Do BusinessChange How You Do Business

No matter how you cut this figure, for a residential No matter how you cut this figure, for a residential customer, your cost per stop is well over $75.00. In customer, your cost per stop is well over $75.00. In fact, it is over $100.00 per stop. The task today is to fact, it is over $100.00 per stop. The task today is to reduce the number of stops per year. It means:reduce the number of stops per year. It means:

No more wasted trips.No more wasted trips. It means knowing what the propane level is in your It means knowing what the propane level is in your

customer’s tank before the truck leaves the plant customer’s tank before the truck leaves the plant yard.yard.

It means efficient deployment despite imperfect tools, It means efficient deployment despite imperfect tools, seasonality of business, vastly different resources, seasonality of business, vastly different resources, etc. etc.

And it requires the most important element: And it requires the most important element: leadership by you.leadership by you.

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Is The Business Toolof Leaders……..

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Six Relevant Areas That Must be Done Well. Six Relevant Areas That Must be Done Well. SkyTracker™ SkyTracker™

Controls Costs Through: Controls Costs Through:

Effective scheduling and routingEffective scheduling and routing Performance Management SystemPerformance Management System Effective Customer Order Management SystemEffective Customer Order Management System Customer Relations & Proper Tank SizingCustomer Relations & Proper Tank Sizing Efficient Resource DeploymentEfficient Resource Deployment Efficient Operating ModelsEfficient Operating Models

(Ask your NASCorp Account Executive for Details)(Ask your NASCorp Account Executive for Details)

Page 34: Economics of Technology - Remote Tank Monitoring

Proven Solutions That WorkProven Solutions That Work

Effective LeadershipEffective Leadership Use of Information TechnologyUse of Information Technology Increase gallons per BobtailIncrease gallons per Bobtail Perfect the Predicted Demand SystemPerfect the Predicted Demand System Manage the Will Call CustomerManage the Will Call Customer Attract and Retain Quality DriversAttract and Retain Quality Drivers Effective Product PricingEffective Product Pricing Implement Performance ManagementImplement Performance Management Choose Vendors that are SeamlessChoose Vendors that are Seamless Train and ChangeTrain and Change(Ask your NASCorp Account Executive for Details)(Ask your NASCorp Account Executive for Details)

Page 35: Economics of Technology - Remote Tank Monitoring

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

Page 36: Economics of Technology - Remote Tank Monitoring

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…….

Page 37: Economics of Technology - Remote Tank Monitoring

SkyTracker™ EngineeringSkyTracker™ Engineering

Firmware EngineeringFirmware Engineering Software EngineeringSoftware Engineering Equipment EngineeringEquipment Engineering Server EngineeringServer Engineering Service EngineeringService Engineering Revenue EngineeringRevenue Engineering Third-Party Compliance & Audit ReviewsThird-Party Compliance & Audit Reviews

Page 38: Economics of Technology - Remote Tank Monitoring

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

Page 39: Economics of Technology - Remote Tank Monitoring

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”

information Escrowed into SkyTracker™ Subscribers Trust Agreement

(SSTA) 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

Page 40: Economics of Technology - Remote Tank Monitoring

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).

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SkyTracker™ Demo Log-In Info.

To see current ‘live’ color-coded satellite tank data at existing end-user locations:

Go to www.nascorp-skytracker.com. 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

Page 45: Economics of Technology - Remote Tank Monitoring

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)).

Page 46: Economics of Technology - Remote Tank Monitoring

SkyTracker™ Equipment Engineering (continued)

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 antennas

Two Greenwich clocks – Tracks time zone and satellite time (20 year service life on clock batteries)

Two super-caps for power-up assurance

Page 47: Economics of Technology - Remote Tank Monitoring

SkyTracker™ Equipment Engineering (continued)

Self-contained – nothing to install in the customer’s home or business

Battery installs in field with Phillips screwdriver (optional power supplies available)

ETL, UL & ANSI rated for use with hazardous materials specifically in environments

were propane is present.

Page 48: Economics of Technology - Remote Tank Monitoring

SkyTracker™ Server EngineeringSkyTracker™ Server Engineering

NASCorp has designed and developed the fastest and most NASCorp has designed and developed the fastest and most unique Web applications in the industry and backed them up unique Web applications in the industry and backed them up with NASCorp’s own IBM X-Series servers for the most with NASCorp’s own IBM X-Series servers for the most secure redundant data storage, not only in the industry, but in secure redundant data storage, not only in the industry, but in almost almost anyany industry. In short, we offer the industry. In short, we offer the safestsafest and most and most secure data transmissions, storage and recovery systems in the secure data transmissions, storage and recovery systems in the industry.industry.

Level(3) Co-Location Center - Under Armed GuardLevel(3) Co-Location Center - Under Armed Guard Duplicate Power GridsDuplicate Power Grids Multiple Internet PipesMultiple Internet Pipes Escrowed into SSTAEscrowed into SSTA Reviewed by Audit & Compliance GroupReviewed by Audit & Compliance Group

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SkyTracker™ ServersSkyTracker™ Servers

IBM X-Series MachinesIBM X-Series Machines Six in ClusterSix in Cluster Active-Passive Servers with three back-upsActive-Passive Servers with three back-ups Sixth server for APISixth server for API IBM Guarantee (99.999% up-time, 2 hours maximum IBM Guarantee (99.999% up-time, 2 hours maximum

down-time) down-time) Other servers come on-line if one or more fail, so Other servers come on-line if one or more fail, so

virtually no down-time for propane distributors or virtually no down-time for propane distributors or their end userstheir end users

Escrowed into SSTAEscrowed into SSTA Reviewed by Audit & Compliance GroupReviewed by Audit & Compliance Group

Page 50: Economics of Technology - Remote Tank Monitoring

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.

Page 51: Economics of Technology - Remote Tank Monitoring

Revenue Engineering

For dealers, SkyTracker™ pays for itselfthrough operating expense reductions and true dealer revenue-generating services, i.e.; Web page access by end-users and SkyHelp Services™, API, consumptionbilling, etc.

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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

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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 trucksDealer retains ownership of the fuel at end-user

locationsEnd-users pay only for the fuel they use each

monthOffered in conjunction with API or Excel

Downloadable Files

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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.

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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

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Final ConsiderationsFinal Considerations

A technology base today positions you to take A technology base today positions you to take on additional benefits tomorrowon additional benefits tomorrow

Eases the “shock” for your employees, your Eases the “shock” for your employees, your customers, and on your P&L and Balance customers, and on your P&L and Balance SheetSheet

It adds to more than your bottom line though It adds to more than your bottom line though market advantage, image and customer and market advantage, image and customer and employee perceptionemployee perception

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Final Considerations continuedFinal Considerations continued

The costs of lost opportunities in not making a The costs of lost opportunities in not making a decision are simply too high. To wait for the decision are simply too high. To wait for the cost to come down will mean you will pay the cost to come down will mean you will pay the same as if you had the technology (due to same as if you had the technology (due to inefficient operations) and still not have the inefficient operations) and still not have the technology. Costs will not come down enough technology. Costs will not come down enough to offset the current value of operating savings to offset the current value of operating savings you can realize today.you can realize today.

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SkyTracker™ tank monitoring. Its reliable and cost effective.

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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

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Payment Terms Net 20 days from NASCorp date of

shipment Warranty items will be handled outside

and separate of payment terms

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$1,420,000.00Waived 1st 4 mos./$320,000.00$30.00/$600,000.00$25.00/$500,000.0020,000

$570,000.00Waived 1st 3 mos./$120,000.00$30.00/$300,000.00$15.00/$150,000.0010,000

$260,000.00Waived 1st 3 mos./$60,000.00$25.00/$125,000.00$15.00/$75,000.005,000

$130,000.00Waived 1st 3 mos./$30,000.00$25.00/$62,500.00$15.00/$37,500.002,500

$47,000.00Waived 1st 3 mos./$12,000.00$20.00/$20,000.00$15.00/$15,000.001,000

Total Quantity Discounts Earned

Monitoring(Reg. $4.00)

Activation(Reg. $39.99)

Equipment (ii)(Reg. $314.99)(iv)

Quantity (12 Months)

Quantity Discounts Example

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Note:• 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.

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• 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

Member of:

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