The URL can be used to link to this page

Home My WebLink AboutMITIGATION (3)Community Advisory Panel 09/~6/00 ~ Og:§9 F~ 86L ~26 ;i255 EqUILON £NTERPRiS]~S LLC ~003 KYLE CARTER HOMES A Corky McMillin Company Cesar Aranda Project Engineer 3851 Fruitvale Avenue · Bakersfield, CA 93308 Phone: 661-399-0239 · Fax: 661-589~1425 Email: caranda~mcmillin.com · www.kylecarter.com Glenn E. Cain, P.E. Site Manager Bakersfield Refinery Shell Oil Products US 6451 Rosedale Highway Bakersfield, CA 93308 Tel +1 661 326 4476 Fax +1 661 326 4382 Pager +1 661 398 2485 Email gecain@shellopus.com Alan E. Spencer Public RelatJons Coordinator Shell Oil Products US 6451 Rosedale Highway Bakersfield, CA 93308 Tel +1 661 326 4343 Fax +1 661 326 4484 Pager +1 661 398 2792 Mobile +1 661 201 2549 EmaiJ aespencer@shellopus.com 09/16/03 09:59 FAX 66]. 328 ¢255 FAX TRANSMITTAL COVER SHEET DATE: 9.16-0,3 COVER + PAGES 3 MESSAGE TO: Ralpl3 Huey COMPANY:_._C_Ity of Bakersfield - Fire Deplb , ' DEPT. TELEPHONE NO: 326;3979 .. FAX NO. ,,. 326-0576 ME~SAGIE FROM: Steven Overman I e-mall: sdoverman(~.shellOPUS.com Shell Oil Products US, Shell Bakemfield Refinery 6451 Rosedale Highway; Bakersfield, CA 93308 TELEPHONE NO: (661~ 326-4351 FAX NO. (l~1 ~ 326-4256 SUBJECT: KvIo ~..~rter Tract No. 6042 ADDITIONAL COMMENTS: _ P~lph - Followin,q o~r telephone conversation yesterdey, j rerveived a coov of the. attached tentative tract moo fgr ~;yle C,~rter's Tract No, 6042 located atthe northwest corner of Mohawk S. treet and the Cal]oway Canal. According to. this tract Gert;er or~poses to c~nstruct 15 home~ ~n 10'~ that include 5 active pipelines operated by the Shelt Bakemfleld Refinery. The~ pipelines ~.r.e]ocated within the Independent Vatlev Ener13y Company (IVEC) ~asement shown on the tract maps. These pipelines ere the foll0wln~! sizes and car~ the followI.n~ refined pmduc-m: ~ 0I, wastewater, 8" fuel (~as. 6' heaw coker gas oli, ,.6' ilcjht coker ,qa~ ~ll. and 6" coker naphtha. If the homes will be centered on the lots, t~.e hot~ea would be 10 to 20 feet from these pipelines - a violation of Your City ordinance. Shell must have unobstructed access to these pipelines for mainten~nc~, moni~g, dnQ. inspections and emerqencies. From a health arid safety, pempective and ore. Ii, bulldin~ home over these pipelines is a very bad idea and Shell must oppose these plans. 1Z-Z4-Z003 13:15 Fr0m-0ES HQ SACRAk~ENT0 W/C I l)ATE: 12/~4/200~ - [RECEWED BY: TIME: 1255 I OE$. CluJs Flute I..0sP -. , l.a. PE~ON NOTIFYING COVEreR'S OES: 1. NAME: 2. AGENCY: 3. PHONE~: Liz Shell Oil Lb. PE~ON REpORT~G SPILL ~f diffe~n~ ~om above): 1. NA~: 2. AGENt: 3. PHONE~: 2. SUBSTANCE TYPE; 2. a. SUBSTANCE: b.QTY~=~ A~ung MeMu~ ~. ~O2 ~ 500 916-845-8910 T-O03 P.001/001 ~vv,'r~Norco urrlUl= UP EMERGENCY SERVICES Hazardous Materials Spill Report '[CONTROL#: JOES. 03-662s [NRC. 70s~s 4. Ext: 5. PAG/CELL; 4. Ext: $. PAG/CELL: c. TYPE: d. OTHER: VAPOI~ F-987 2, H2s = unknown UnKnown VAPOR e. DESCRIPTION: A shutdown of the refinery due m a My[ar balloon swoe. k The main power line, causing a power failure. f. CONTAINED: g. WATER INVOLVED: h. WATERWAY: Yes No i, DRINKING WATER IMPACTED 3. a. INCIDENT LOCATION: 3663 Gibson St, b, CITY: ¢. COUNTY: B~kersficid Kern County d. ZIP: 4. INCIDENT DESCRIPTION: a. DATE~12/24f2003 b. TIME (Mlllta~): 1053 d. INJURIES// e. FATALS #: 0 0 C, SITE: Refinery £ EVACS #: 0 g. CLEANUP BY: n\a 5. SUrE.ED RESPONSIBLE P~TY: a. N~: b. AGENCY: Shell Oil ~ MA~ ~DRESS: f. CI~: 54~ 1 ~sedalo Hwy. B~e~field 6. N~ICATION ~FOR~TION: Ia. ON S~NE; b. OTHER ON SCENE: Air QualiW c. PHONE#: d. EXT.: 661-326-4394 g~ STATE: CA ZIP: e. OTHER NOTIFIED: A d, ADMIN. AGENCY: l~aker~ficld Fire Dcpm~mont e, SEC. AGENCY: Item Co. Envimnmcncal H¢fllth Sot'vices Dgpt f. NOTIFICATION LIST; DOG [Init: RW(}Cil Unit~ 5C ~ o~s ~ass u~rr '[~,'1 sw0cs [Ya usr~ ~ (lIES HAZMATUNff [''[ PUC' Future Topics Community Advisory Panel, Shell Bakersfield Refinery October 24, 2002 · Toxic Release Inventory Report- Update · Health and Safety Committee · Governmental Affairs · MTBE Remediation Project · Environmental Responsibilities and Requirements · What is the economic impact of the refinery in our Community · Gasoline Price Fluctuations · Operator Training and Procedures · Process Safety Initiatives Please inform Alan Spencer of any other topic that you would be interested in discussing with Shell Bakersfield Employees. Thank You Alan Spencer 3264343 Shell Ba. kersfie!d Refinery Community Adwsory Panel Jim Beck- Retired telecommunications executive; instructor University of Phoenix; management consultant Glenn E. Cain - Site Manager, Shell Bakersfield Refinery Mike Chertok - Vice President, Development, California State University, Bakersfield David Couch - Bakersfield City Councilman, Ward 4 Mary DeGeare - Public Affairs Officer, Bakersfield Police Department Jamie Henderson - Superintendent, Rosedale Union School District Mary Jo Pasek - Assistant Vice President, Administration- Personnel, CALCOT Julio Paris - Refinery retiree Christy Cortes-Sackrider - Public Affairs Director, Kaiser Permanente Joe Selgrath - Environmental Consultant, Petrotech Howard Wines - Bakersfield Fire Department Shell Bakersfield Refinery Community Advisory Time: Location: Affenda: ...... Facilitator. 7- 7:05 AM T.-OS--T:15 AM ?:I$--7:Z0 AM 7 - 8:30 AM The New Petroleum Club Michael Roberson Call to Order, Self-Introductions What Is On YourMind ? What Have You Been Hearingln The News? . . Shell Bakersfield Refinery 'Site Technical Update 7'.35--7:40 (Dave Worley) Personnel T.'5~--8:05 (Lynleyl~arris) SnfetynndE~: 8:05 -- 8,: 10 (,,~nn~tte Bills) ~rodnvt~ Texmlnai' 1:7_~--$:30-bTcxrCAP M~'ting (T,m~ve) ~ 24, 2~04 T.'Z0- 7:25 (Jeff Krafve) Overview and FIyOnn~ Thrmrglrp~. 7:25 - 7:35 (Aamir Farid - Manager of the Bay Valley Complex) Cc~e~t P~ ~1 Media [!H_OWar_d wines- _R_e:Refin~ery C!osure . ' ' . Page 1 I From: To: Date: Subject: Alan Spencer <aespencer@equilon.com> Howard Wines <hwines@ci.bakersfield.ca.us> 11/13/2003 12:12:55 PM Re: Refinery Closure The following inquiry was submitted on 11/13/03. The topic, question, and our response is below. Thank you for your interest and/or concern. TOPIC: Refinery Closure COMMENT/QUESTION: By "closure" is it meant simply divestiture to another operator or the complete decommissioning and dismantling of all process units? RESPONSE: We are completely decommissioning the process units. As for dismantling the units, it's too early in the process to determine what will happen. If you have further questions or would like more information, feel free to contact us at the link below. Please submit replies using the 'Submit Inquiry' link to ensure we receive your inquiry. Shell Bakersfield Refinery Shell Bakersfield Refinery Closure http://www.piersystem.com/external/index.cfm?CID=653 Meeting Date: New Time: New Location: Shell Bakersfield Refmery Community Advisory Panel Thursday, June 26, 2003 7 - 8:30 AM 5060 California Ave. - The New Petroleum Club in The Stockdale Tower, 12t~ Floor, and West Side Dinning Area Agenda: 7 - 7:05 AM Call to Order, Self Introductions 7:05 - 7:20 AM Breakfast (Buffet) 7:20 - 8 AM MTBE (Gasoline Additive) Remediation Gene Freed and Steven Overman are Senior Environmental Engineers and they will explain: History of Terminal / Refinery MTBE Releases · Current Status · Water Supply · Treatment Technologies · Long Term Strategies 8 - 8:15 AM Ethanol (Gasoline Additive) Conversion Annette Bills is a Senior Process Engine. er and she will explain: · The phase out of the gasoline additive - MTBE · The Conversion to the new gasoline additive - Ethanol 8:15 - 8:25 8:30 AM Other Business, Future Topics and Meeting Dates Meeting Adjournment Please call Alan Spencer at 3264343 with any questions or concerns Thank You Meeting Date: New Time: New L6cation: Shell Bakersfield Refinery Community Advisory Panel Thursday, April 24, 2003 7 - 8:30 AM 5060 California Ave. - The New Petroleum Club in The Stockdale Tower, 12t~ Floor, and West Side Dinning Area A~enda: · 7 - 7:05 AM Call to Order, Self Introductions · 7:05-7:20AM Breakfast (BuffeO 7:20 - 7:30 AM Introduction - New Site Manaeer 7:30 - 8:20 AM Presentation - Pressure Equipment Integrity The Pressure Equipment Integrity Staff will present an overview of their duties as PEI Inspectors. Inspection of pressure equipment comprises an important segment of the safe and reliable operation of The Shell Bakersfield Refinery. The PEI Staffwill explain: · The purpose of Pressure Equipment Inspections The types of pressure equipment inspections · Record Keeping · Quality assurance and quality control of equipment fabrication, alterations and repairs · 8:20-8:25AM · 8:30 AM Other Business, Future Topics Meeting Adjournment Please call Alan Spencer at 326-4343 with any questions or concerns Thank You BRAIN TEASERS Here's something to do while we're waiting to get started. Each of the 12 items below is a separate puzzle. How many can,you figure out? FAIRY BOOK BOOK 15 [~OgePS WOLF R~ SINGING IN DUCKLING DO 1 2 3 4 FEW MENTION I DR. DR. FEW MENTION 8 5 6 '7 8 SPRING' STAND WORDS AUTUMN I WINTER 10 11 12 3. q. ,5. boo~ Meeting Date: New T~me: New Location: Shell Bakersfield Refinery Community Advisory Panel Thursday, April 24, 2003 7 - 8:30 AM 5060 California Ave. - The New Petroleum Club in The Stockdale Tower, 12th Floor, and West Side Dinning Area Agenda: · 7 - 7:05 AM Call to Order, Self Introductions · 7:05-7:20AM Breakfast (Buffet) · 7:20-7:30AM Introduction - New Site Manager · 7:30-8:20AM Presentation - Pressure Equipment Integrity The Pressure Equipment Integrity Staff will present an overview of their duties as PEI Inspectors. Inspection of pressure equipment comprises an important segment of the safe and reliable operation of The Shell Bakersfield Refinery. The PEI Staff will explain: · The purpose of Pressure Equipment Inspections · The types of pressure equipment inspections · Record Keeping · Quality assurance and quality control of equipment fabrication, alterations and repairs · 8:20-8:25AM · 8:30 AM Other Business, Future Topics Meeting Adjournment Please call Alan Spencer at 326-4343 with any questions or concerns Thank You Shell Bakersfield Refinery Community Advisory Panel Meeting Date: Time: Location: December 5, 2002 5:30 -7:30 PM 3209 Landco Drive, Shell Bakersfield Refinery Training Center Agenda: Legislative Update (Election Review) · 5:30-5:35PM 5:35-6PM, 6 - 6:45 PM Call to Order, Self Introductions Dinner Special Guest - Barbara Kornylo, Oil Lobbyist Mrs. Komylo is The Manager of Governmental and Corporate Affairs for Shell Oil Products US. She would like to discuss the following topics: The recent election results · Will the recent elections affect the Oil Industry in California and Kern County? · Issues facing Shell Oil Products US · The Refining Industry · 6:50 - 7:00 PM Shell Bakersfield Refinery Community Volunteer Video · 7:00-7:15 PM Other Business including Future Topics for 2003 · 7:30 PM Meeting Adjournment Directions to the Landco Training Center: · From Coffee Road, turn East onto Rosedale Highway. Landco Drive is located ~ ~A Mile East of The Shell Bakersfield Refinery, or it is the first traffic light East of the Refinery on Rosedale Highway. Turn north or left onto Landco Drive and the Landco Training Center will be on your left, almost at the end of Landco Drive. · From Business 99 Highway, turn West on Rosedale Highway and the 4th traffic light should be Landco Drive. Turn North on Landco Drive and the Landco Training Center will be to your left. Please call Alan Spencer at 326-4343 with any questions. Thank You Howard Wines- Agenda for June 2002.doc ........ -~._ .~_-~._ ..... Page Shell Bakersfield Ref'mery Community Advisory Panel Meeting Date: Time: Location: Agenda: June 27, 2002 5:30 -7:30 PM 3209 Landco Drive, Shell Bakersfield Refinery Training Center 5:30 - 5:35 PM · 5:35-6PM, 6- 6:45 PM · 6:45-7:15PM · 7:15-7:25 PM · 7:30 PM Call to Order, Self Introductions Dinner will be served. Safety and Security Procedures Flaring Incidents Other Business Adjournment Directions to the Landco Training Center: · From Coffee Road, turn East onto Rosedale Highway. Landco Drive is located ~ % Mile East of The Shell Bakersfield Refinery, or it is the first traffic light East of the Refinery on Rosedale Highway. Turn north or left onto Landco Drive and the Landco Training Center will be on your left, almost at the end of Landco Drive. From Business 99 Highway, turn West on Rosedale Highway and the 4th traffic light should be Landco Drive. Turn North on Landco Drive and the Landco Training Center will be to your left. Please call Alan Spencer at 326-4343 with any questions. Thank You Howard Wines - A Shellabration Announcement Pa_g_e 1_~ From: To: Date: Subject: Alan Spencer <aespencer@shellopus.com> Howard Wines <hwines@ci.bakersfield.ca.us> 4/22/02 4:04PM A Shellabration Announcement Shell Bakersfield Refinery Release Date: April 22, 2002,16:14:06 PST A Shellabration Announcement MEDIA ADVISORY What: "A Shellabration" The largest oil refinery in Bakersfield is now an all Shell operation. This event will be a ceremony unveiling the new refinery sign and raising the Shell flag. This replaces signage of Equilon Enterprises, the former Shell-Texaco alliance. When: Wednesday, April 24, 2002 10:45 AM Where: 6451 Rosedale Highway in Bakersfield Who: Shell Officials: Chuck Flagg, Genreal Manager of Shell Oil Products US, Bay Valley Complex Glen E. Cain, new Site Manager for Shell Bakersfield Refinery (both officials available for interviews) Plus: Supervisor Barbara Patrick, District 3 Harvey Hall, Mayor of Bakersfield For more information contact: Alan Spencer Shell Bakersfield Refinery Phone: 661-326-4343 Fax: 661-326-4484 PO Box 1476 Bakersfield, CA 93302 aespencer@shellopus.com Shell Bakersfield RefineryPublic Information Center http://www.piersystem.com/external/index.cfm?ClD=336 Visit this link to unsubscribe http :llwww.piersystem.comlremove.cfm ?C ID=336 Shell Bakersfield Refinery Community Advisory Panel Meeting Date: Time: Location: April 18, 2002 5:30 p.m. Petroleum Club Agenda: 1. Call to order 2. Introductions (CAP members and key refinery staff) 3. Review of CAP Mission and Guidelines 4. Discussion of CAP member materials 5. Discussion of future agenda items 6. Discussion of meeting schedules 7. Other Business 8. Adjournment Howard Wines - Apri_~ 1~8,2_002._d~_c ..................................... Page 1_! SHELL BAKERSFIELD REFINERY Community Advisory Panel (CAP) April 18, 2002 (minutes) PRESENT: ABSENT: FACILITATOR: CAP Members - Jim Beck, Mike Chertok, Mary DeGeare, Jamie Henderson, Mary Jo Pasek, Julio Pads, Joe Selgrath, Howard Wines Shell Bakersfield Refinery Staff- Glenn Cain, Robert O'Brien, Annette Bills, Greg Cervantes, Fred I-Irenchir, Kirk Shelton, Steve Overman, Alan Spencer CAP Members - Christy Cortez-Sackrider and David Couch Larry Pickett CAIJ. TO ORDER: · 5:30 p.m. - Facilitator Larry Pickett called meeting to order INTRODUCTIONS: · 5:35 - 5:45 p.m. - Self-introductions were made DINNER: · 5:45 - 6:15 p.m. - Dinner served at the Petroleum Club DISCUS SION 1TEMS: * Review of CAP Mission Statement and CAP Guidelines - The guidelines included information concerning Membership, Panel Guidelines which included the number of meetings per year, Length of Service, Meeting Format, Quorum, Visitors and Confidentiality Review of CAP Member Material - Robert O'Brien - Production Manager for Shell Bakersfield Refinery discussed some basic facts concerning the refinery. Bob discussed the Capacity of the refinery, the products we produce, major processes of the refinery, markets served, annual payroll and State and local taxes. Annette Bills - Process Support and Quality Assurance Supervisor for Shell Bakersfield Refinery discussed the Historical Events of the refinery, dating back to 1932. She also discussed the basic facts surrounding what a barrel ofoil can make. !Howard Wines - April 18,2002.doc ............. Pag_e 2~1 FUTURE AGENDA ITEMS · What is the economic impact of the refinery in our Community · Explain what is happening with the closed Shell Stations (eye sores) · Explain the Texaco ! Shell Business Relationship · Shell Bakersfield Refinery needs to be more visible in the Community. How are we going to accomplish this? · Gasoline Price Fluctuations (private vs. public comparison) - Why does the price of gasoline fluctuate so drastically and how does this impacts the Community? · Explain CARB Diesel · Refinery Tour · Explain MTBE · What is a flaring incident? · How does the refinery respond to incidents at the refinery? · How is the Community notified in the event of an emergency at the refinery? Call System? MEETING SCHEDULE · Fourth Thursday of Each Month · Next Meeting Scheduled for May 23, 2002 · 5:30 - 7:30 p.m. Location not determined at this time 1. MEETING ADJOURNMENT · Meeting Adjourned at approximately 7:20 p.m. Respectfully Submitted by Alan Spencer Shell Bakersfield Refinery Community Advisory Panel Meeting Date: Time: Location: A~enda: June 27, 2002 5:30 -7:30 PM 3209 Landco Drive, Shell Bakersfield Refinery Training Center 5:30 - 5:35 PM · 5:35-6PM, · 6- 6:45 PM 6:45-7:15PM · 7:15-7:25PM · 7:30 PM Call to Order, Self Introductions Dinner will be served. Safety and Security Procedures Flaring Incidents Other Business Adjournment Directions to the Landco Training Center: · From Coffee Road, turn East onto Rosedale Highway. Landco Drive is located ~ sA Mile East of The Shell Bakersfield Refinery, or it is the first traffic light East of the Refinery on Rosedale Highway. Turn north or left onto Landco Drive and the Landco Training Center will be on your left, almost at the end of Landco Drive. From Business 99 Highway, turn West on Rosedale Highway and the 4~ traffic light should be Landco Drive. Turn North on Landco Drive and the Landco Training Center will be to your left. Please call Alan Spencer at 326-4343 with any questions. Thank You I~-I-Ioward Wines - May 23, 2002.doc .......... Page SHELL BAKERSFIELD REFINERY Community Advisory Panel (CAP) May 23, 2002 (minutes) Members in Attendance: CAP Members- Jim Beck, David Couch, David Haskins for Mary DeG-eare, Jamie Henderson, JulioParis, Christy Cortes-Sackrider, Joe Selgrath, Howard Wines Shell Bakersfield Refinery Staff- Robert O'Brien, Annette Bills, Greg Cervantes, Alan Spencer, Keith Torres Absent Members: CAP Members - Mike Chertok, Mary Jo Pasek Guest: Mayor Harvey Hall Facilator: Larry Pickett 1. Call To Order: 5:30 p.m. - Facilitator Larry Pickett called meeting to order. Those in attendance made self- introductions. A quorum of members was present. 2. Dinner: 5:35 - 6 p.m. Dinner served at the Refinery 3. Tour of Refinery 6 p.m. - 7:30 p.m. Window Tour of Refinery. The CAP Members viewed the following areas within the Refinery: · Area 1 Processing Units · Area 1 Laboratory · Area 1 Flare System · Area 2 Flare System · Area 2 Process Units · Area 2 Tank Farm · Truck Loading Facility · Centralized Control Room 4. Other Business Pictures taken at the Centralized Control Room 5. Adjournment Howard Wines - May 23_.,~002.doc Page__2_I Respectfully Submitted by: Alan Spencer Mission Statement The Shell Bakersfield Refinery Community Advisory Panel will facilitate open communications and better understanding between residents, businesses, and public agencies in Bakersfield and Kern County, California and the administration of the Shell Bakersfield Refinery regarding local issues of mutual concern and importance. The panel will provide an ongoing avenue for the public to convey its concerns about energy-related issues through regular dialogue. Panel Guidelines 1. The name of the group shall be the Shell Bakersfield Refinery Community Advisory Panel. 2. Membership Between 10 and 15 members will participate. Each member should reside within Bakersfield or Kern County. Representatives should include civic, business, public agency, education, environmental, healthcare, and other community organizations and individuals. 3. Panel a. The panel will meet regularly (eight-nine sessions annually) with refinery management to review and discuss facility operations, environmental concerns, safety, emergency preparedness, community involvement, and any other issues the panel determines to be important. b. The panel can provide feedback to the refinery on ways to improve communications. c. The panel will serve as an advisory group and not a decision-making body. Shell Bakersfield Refinery management will not seek formal approval or disapproval of any actions the company is taking, but will be responsive to the panel's concerns. d. The company will not discuss proprietary or personal matters except for those normally made public. e. Members of the panel will not be compensated for participation. 4. Length of Service Panel member will be asked to serve for a period of two years. Any vacancies will be filled for the remainder of the unexpired term with an individual recommended and selected by the panel. 5. Meeting Format Meetings will last no more than two hours. The date and time will be mutually agreed upon by members of the panel. Agenda topics will also be determined by panel members. Meetings and agenda items will be coordinated by a facilitator working in conjunction with the panel and refinery staff Minutes will be kept and reviewed each meeting for accuracy. Minutes may or may not be made available to the public. 6. Quorum A meeting will not be held unless two thirds of the membership have indicated their plans to attend. Members will be notified if an insufficient number of members will be attending and an acceptable alternative meeting date will be determined. Members cannot miss three (3) consecutive meetings or their seat on the panel will be declared vacant and filled by a new member. If an alternate attends the meeting on behalfofa panel member, that will not count as an absence. 7. Visitors For the first six months, panel meetings will be closed, with visitors allowed only by invitation of the panel and then only for specified reasons. The policy will be reviewed after the first six months for consideration of any changes. 8. Confidentiality Confidentiality between panel members and Shell Bakersfield Refinery staff will be maintained with viewpoints of individual members not attributed to them. Minutes will reflect this practice. Any public releases of intbrmation from the panel will be done only with the approval of the panel. Shell Oil Products US Shell Bakersfield Refinery Location: Capacity: Bakersfield, California 70,000 barrels of crnde oil per day Products: Maj or Processes: Markets served: Motor gasoline, diesel fuel, raw gas oil, desulfurized gas oil, LPG, butane, fi~el oil, asphalt, coke, and sulfi~r Crude and vacumn distillation, hydrotreating, hydrocrackmg, delayed coking, hydrogen generation, catalytic reforming, and sulfitr recovery Southern San Joaquin Valley and Central Coastal areas of California. Employees: Payroll: State/local taxes Paid Annually: Built: 245, phis 150 contractors $30 million mmually $2.6 million Original facility was built in 1932. Regular expansion and ilnprovements of facilities made in years since including integration of former Tosco Refinery in 1986 and IVEC facility in 1987 Shell Bakersfield Refinew 1932 Plant opened as Mohawk Refinery, processing 1,500 barrels per day (BPD) 1935 Cracker Ulfit added increasing capacity to 9,000 BPD 1942-45 Plant operated jointly with adjacent Tosco Refinery to process military fuel from heavy valley crude for war 1970 Mohawk Refinery acquired by Reserve Oil and Gas Co. (Had been processing approximately 40,000 BPD) 1980 Reserve Oil and Gas acquired by Getty Oil Company; facilities expanded including high-tech track loading facility. (Plant producing about 45,000 BPD) 1984 Getty Oil Company assets acquired by Texaco, Inc. including Bakersfield facility which becomes the Texaco Bakersfield Plant; Texaco imtiates heavy crude expansion project 1986 Texaco purchases Tosco Refinery; integrates facilities, doubling output of gasoline production 1987 Independent Valley Energy Company acquired; integrating delayed coker and sulfur recovery milt into Bakersfield Plant 1998 Bakersfield Plant becomes part of the Shell/Texaco Refining and Marketing alliance which created Equilon Enterprises LLC 1999 Plant reaches 70,000 BPD capacity milestone 2002 Refh~ery becomes part of Shell Oil Products US Refining (Source: FAST FACTS American Petroleum Institute) Before petroleum can be used it must be refined. To do this, the refining processes uses temperature, pressure, and catalysts to separate, reshape, break apart or combine hydrocarbon molecules to produce a variety of products. The processes used at a refinery will vary depending on the characteristics of the crude used and the products being produced. The Shell Bakersfield Refinery processes primarily heavy crude from the Central Valley, using refining processes designed to handle this kind of crude. Other refineries will have facilities designed to handle lighter crude. Refined products from refineries can include gasoline, jet fuel, kerosene, distillate fuel, residual fuel, naphtha/other oils, lubricants, waxes, petroleum coke, asphalt, still gas, and more. A Barrel of Crude can make: Gasoline (based on 1995 average yields for U.S. refineries) l 9.5 gallons Distillate fuel oil (home and diesel fuel) Kerosene-type jet fuel Residual fuel oil Liquefied refinery gasses Still gas Coke Asphalt and road oil Petrochemical feedstocks Lubricants Kerosene and other 9.2 gallons 4.1 gallons 2.3 gallons 1.9 gallons 1.9 gallons 1.8 gallons 1.3 gallons 1.2 gallons 0.5 gallons 0.5 gallons Shell Bakersfield Refinery Contact List Site Manager: Glem~ E. Cam Phone: 661-326-4476 Pager: 661-398-2485 E-Mail: gecain@shellopus.com Alternate: Bob O'Brien Phone: 661-326-4335 Pager: 877-291-0387 E-Mail: rkobrien@shellopus.com Media Contact: Bakersfield Alan Spencer Phone: 661-326-4343 Pager: 661-398-2792 E-Mail: aespencer~shellopus, corn Public Relations Representative: Cmneron Smyth Phone: 818-736-5684 Pager: 800-224-3808 E-Mail: css~nyth@shellopus.com ~,,-- -'~a~ses for Gasoline & Diese.. Price Increases in California - Report to the Governor Page 1 of 4 Causes for Gasoline & Diesel Price Increa e in California Executive Summary - The statewide average retail price of regular gasoline jumped 36 percent, climbing from $1.58 a gallon, 2003, to a record-setting $2.15 a gallon on March 17, 2003 - an increase of 57 cents. With Californians consuming nearly 1.1 billion gallons of gasoline each month, a 57-cent-per-gallon in, Consumers more than $20 million per day. From January to mid-March 2003, diesel fuel consumers saw the price of their fuel increase by as much gallon, reaching a statewide average of $1.89 a gallon on March 13, 2003. Concerned about the impact on the state's economy and individual consumers, Governor Gray Davis asl California Energy Commission on March 13, 2003 to examine the causes of the recent price increases. Why have prices increased? As long as demand for transportation fuels continues to grow, California's gasoline supply will be subje spikes. At maximum production, the state's refineries make more than 44 million gallons of gasoline a C need to import an estimated 100 million gallons of gasoline and blend stocks each month to meet our d~ Unanticipated production difficulties or distribution problems can tighten the market and drive up price. additional supplies can arrive by ship from distant refineries, which can take three to six weeks. This year's increase in gasoline and diesel prices is not unlike similar events that occurred in 1999 and ~ primarily drove this year's increases to record-setting levels was the unusually high cost of crude oil on market. The price of crude oil on the world market nearly doubled in the past year due to market uncerb threat of war in the Middle East. Other factors included an oil strike in Venezuela that drastically cut su' cold winter in the Eastern U.S. that increased the need for heating oil. The Energy Commission tracks the price of Alaskan North Slope oil as a benchmark of crude oil prices. 2, 2002, Alaskan North Slope crude sold for $18.36 a barrel. Since the beginning of 2003, Alaskan crud nearly $7 a bah'el, setting a price record of $37.48 on March 12, 2003. The $7 increase by itselfaccounl cents of California's higher gasoline and diesel costs. Diesel prices in California and other national markets moved up in tandem with world crude oil prices. reason, increased diesel prices seem to be accounted for by more expensive crude oil and some normal, variation in price. Higher gasoline costs, however, are not completely explained by the higher price of crude oil. Especiall http://www, energy.ca.gov/2003_price_spikes/gasoline_exec_sum.html 04/23/03 ~ ~auses for Gasoline & Diesel Price Increases in California - Report to the Governor Page 2 of 4 the fact that gasoline prices climbed quicker and higher in California than in the,rest of the country. Gasoline prices normally begin to increase around March as refiners switch from winter blends to a sun Because summer gasoline contains more expensive ingredients, it typically costs 5 cents more per gallo Fuel terminals and storage facilities try to empty their large tanks of winter gasoline before switching o, blends, making March a time of temporarily low inventories, and leaving the market vulnerable to price supplies are disrupted. Several factors, however, exacerbated the already tight supplies and contributed increases this year in California: · Because consumer demand for gasoline is at a low ebb during the winter, refiners often take proc, out of service during late fall or early winter to perform major maintenance before the summer dr begins. These so-called "turnarounds" are planned events; refiners build gasoline inventories or p' additional supplies to get them past the time when their refineries are not producing. This year, g~ supplies became tighter and prices increased as some of those turnarounds took longer than expec · It appears that Governor Davis' decision to delay the phase out of MTBE fi.om January 2003 to J, successfully forestalled prior predictions that the earlier phaseout would have create severe suppll The one-year delay provided refiners the flexibility to make the conversion when they believed supplies were secure and the needed infrastructure additions like blending equipment and extra st were in place. However, the MTBE phaseout did result in a shift of independent marketer demam primary suppliers struggled to maintain consistently adequate supplies of gasoline to these custon appears to have contributed to a rapid price increase for unbranded gasoline in both Northern and California. · In late February and early March, constrained gasoline supplies in Phoenix caused prices in Arizc even higher than prices in California. Arizona's supply problems increased demand for gasoline e Southern California and likely contributed to the severity of the rise in California gasoline prices. Speculation also contributed to price volatility. Just as the anticipation of supply interruptions in the Mi caused crude oil prices to escalate worldwide, fear of possible blending problems with California's new gasoline caused additional speculation in an already volatile gasoline market. When gasoline supplies are tight, even the rumor of refinery problems can have major consequences in market. A mistaken report of a refinery outage in 1999, for example, caused the spot price to jump 13 o afternoon. In much the same way, this year word spread throughout the industry that California refiners difficulty making CARBOB gasoline that could meet new summer specifications. The trade press later: Shell made a test batch of CARBOB in February that did not quite meet summer specifications, but it u as winter fuel. Despite this clarification, the rumor raised industry concerns. In another case, ethanol-blending equipment malfunctioned at a San Diego fuel terminal. As a result, B~ Petroleum had to pump non-compliant regular gasoline out of underground tanks at 59 of its local ARC outlets. This error was complicated by an isolated incident of a lone disgruntled Texaco service station gasoline prices as high as $4.29 a gallon for premium. The combination of these events led to rumors re national press that stations in San Diego had inadequate supplies of gasoline and that stations were clos: clear, however, how these events contributed to the price increases. The price spikes also affected refiner and dealer cost and profit margins. As California's gasoline prices volatile market, pump prices differed as much as 30 cents a gallon from one station to another in a singl Obviously, some retailers were making more profit than others were. However, by using average retail ~ prices for regular gasoline, we can determine an approximate dealer cost and profit margin - the differet http://www.energy.ca.gov/2003_price_spikes/gasoline_exec_sum.html 04/23/03 Causes for Gasoline & Diesel Price Increases in California - Report to the Governor Page 3 of 4 the retail price and the wholesale cost of gasoline with applicable state, federal and local taxes included. The seven-year average for dealer margins is approximately 10 cents per gallon. Estimates show that, ir weeks, average dealer cost and profit margins for both major brands and independent stations ranged fn to 18 cents a gallon. Cost and profit margins for retailers include such expenses as franchise fees, rents, utilities, supplies, equipment maintenance, environmental fees, licenses, permitting fees, insurance, dep advertising, as well as profit. For dealers, some expenses such as credit card fees increase as the retail p: During 2003, the cost and profit margins for refiners - the difference between the cost of crude oil and t~ price of gasoline - also increased. The seven-year average for refiner margins is between 29 and 32 cent beginning of the year, estimated refiner margins ranged from 19 cents to 76 cents a gallon for both majt independent gasoline. We are unable to determine an individual company's actual costs for operating a refinery or terminal pr{ expenses such as processing crude oil, adding oxygenates, shipping and storing products, depreciation, and more. However, the cost and profit margins for refiners have increased in a tight market. The possibility exists, nevertheless, that one or more refiners could manipulate retail prices by withhold but such behavior would pose certain risks. For one, the company could permanently lose market share ran out of fuel or charged prices substantially higher than its competitors. Increased prices might not be compensate for the loss in sales volume, and if discovered, such manipulation would cause a public rela that could seriously damage the company's credibility. The Energy Commission has been examining options to help stabilize our volatile market, ensure we ha gasoline and diesel supplies and minimize our State's dependency on petroleum. As required by Asseml our study with the California Air Resources Board will explore ways to increase transportation energy e encourage the development of~ alternative fuels and vehicles. At the same time, the Energy Commission strategies to address short-term price volatility. These strategies included the feasibility to develop a sm reserve and other options to insulate Califomia consumers and businesses from substantial short term p~ arising from refinery outages and other supply disruptions. We plan to submit the final report to the Le~ June 2003. In the past two weeks, with the certainty of war, Alaskan North Slope crude oil prices have fallen more barrel on the world market to $28.27 a barrel - down from its March 12, 2003, high of $37.48 per barrel California refiners have come out of turnaround and the supply of gasoline has increased, the spot mark price of California Reformulated Gasoline Blendstocks for Oxygenate Blending (CARBOB) has droppt 40 cents - from the March 12, 2003, high of $1.57 to $1.15 on March 26, 2003. As a result, prices for ct the pump are beginning to inch downward. Report Recommendations The Energy Commission has found no evidence that distribution problems or delays in coming o~ turnaround were intentionally planned to manipulate gasoline prices. The nature of the petroleum however, has changed significantly in the past decade. To make our analysis of the current marke the Energy Commission needs to receive additional information on a weekly basis from oil produ marketers, transporters, and storage facility operators. The Energy Commission must be able to t~ levels at terminals better as well as imports and exports of petroleum products. Because of the po' significant impacts on consumers, we recommend the petroleum industry voluntarily submit requ http://www.energy.ca.gov/2003_price_spikes/gasoline_exec_sum.html 04/23/03 ° iCauses for Gasoline & Diesel Price Increases in California - Report to the Governor Page 4 of 4 information now before the Energy Commission concludes its formal adoption process for collec~ An investigation by the Attorney General does not appear wan'anted at this time, however, the En Commission will continue to monitor gasoline and diesel supplies and prices closely. Return to Previous Pag_e I Commission Homep_aqe I Site Index I Search Site I Glossary I Links I Contl Page Updated: April 2, 2003 http://www.energy.ca.gov/2003_price_spikes/gasoline_exec_sum.html 04/23/03 5, ~merican Petroleum Institute - What's going on with gasoline prices.'? Page 1 of 2 American Petroleum Institute t220 L St~eet~ HW Washington D.~ 200OS-4OTO (202) GS2*800O w~w. apl.org What's going on with gasoline prices? DESPITE A COMBINATION of factors that dramatically drove up the cost of gasoline and other fuels in recent months, U.S. refiners are determined to continue providing Americans with the energy they need to be able to maintain the way of life they have earned and hold dear. The Crude Reality The cost of gasoline has now begun to drop. It higher price earlier this year- along with those of diesel, heating oil and other petroleum products - were caused primarily by refiners' having to pay considerably more for crude oil, the principal cost component of a gallon of gasoline. The cost of a barrel of crude oil has now dropped down to below $30, but it sold for close to $40 earlier this year. That higher price was twice as much as what a barrel of crude cost at that time last year and some $12 more than it cost in November. So, any talk that there might have been be something else behind the increasing cost of gasoline had no basis on fact. The hundreds of thousands of loyal and dedicated men and women who work hard 24 hours a day, seven days a week, to produce and deliver the energy that keeps Amedca strong understand this - as do federal and state regulators who have repeatedly found, when called upon to investigate, that market forces are what determine the pdce of gasoline. (See "Causes for Gasoline and Diesel Price Increases in Califomia~ a summary of the California Energy Commission's recente report, which found that market forces are what drives fuel costs. San Jose Mercury-News editorial: Sorry, but there's no gasoline price conspira_cy -- again Cleveland Plain Dealer: Stretching3Lo_ur gasoline dollar Because the cost of crude oil is the largest cost component of gasoline, it stands to reason that when the cost of crude oil goes up, there is generally an increase in the price of gasoline. Likewise, when the cost of crude oil goes down, the price of gasoline typically declines. The Triple Punch Why were crude oil costs so high? There are three main reasons: the uncertainty about Iraq and the Middle East, Venezuela and weather. · Venezuela: Our fourth-largest supplier of crude oil experienced a long pedod of social and political unrest. A strike by oil industry workers there crippled that country's ability to ship oil to other nations, including the United States. Although the strike is over, it will be some time before that country's exports return to pre-strike levels. Obviously, the loss of Venezuelan crude meant a decrease in the worldwide supply of crude oil. · Weather: This winter was much colder than normal, both in this country and in Europe, greatly increasing the need for more heating oil, which also comes from crude oil. For example, January was about 9 pement colder than normal for the Northeast and 32 percent colder than January 2002 in that region This increased the demand for crude oil. · Uncertainty: The possibility of military action against Iraq and how such action might affect the continued supply of crude oil from the Middle East made oil traders and refiners nervous. Our experience dudng the first Gulf War pedod indicates that many buyers attempted initially to stock up on crude to protect their ability to meet their customers' needs in the event that supplies would be interrupted by a prolonged military engagement. Historically, such an additional increase in demand has tended to lead to higher prices for crude. When coupled with other factors, such as the weather-related demand and the decrease in Venezuelan supply, the price increases are more pronounced. http://api-ec..../printerformat.cfm?ContentlD=AD717COE-51D9-4A5D-89AOC 17E9606DBE 04/23/03 American Petroleum Institute - What's going on with gasoline prices.9 Page 2 of 2 Recently other factors have come into play, such as the continued unrest in Nigeria -- our fourth-largest suplier - which has been experiencing political unrest, disrupting supplies. So, in a nutshell, we have two forces driving up demand and another driving down supply- the classic formula for higher prices. Reliable Supplies Because our industry and its employees are working harder and are more determined than ever, gasoline and other fuels are flowing normally despite these factors. While consumers have paid more at the pump, they do not have to suffer the added inconvenience of having to wait in long lines to get the gasoline they need to go about their daily lives. And it is important to remember that our country is not totally defenseless when it comes to assuring that Americans have the fuel they need, even in a national emergency: America has its own insurance policy in the form of the U.S. Strategic Petroleum Reserve - stored securely underground in Texas and Louisiana. It holds the equivalent of 300 days of crude oil imports from the Middle East. As designed by law, the SPR is to be used only if there is a serious loss of supplies that may result in a major adverse impact to the national economy or safety. Keeping Prices in Perspective In inflation-adjusted 2003-dollar terms, today's prices remain Iow compared to the historical record of pump prices over the last 85 years. In fact, motor gasoline prices are 39 percent lower than the 1981 high of $2.70 per gallon (adjusted for inflation). Between then and now, the real cost of motor gasoline to consumers fell by $1.05 per gallon. What Can Consumers Do? Consumers can help lesSen the effects of higher fuel prices by becoming even more careful about how they use their fuel and by shopping wisely. In addition, they can see to it that their vehicles are operating as efficiently as possible. For tips on winter care and driving tips that save money and energy, check out these helpful fuel-saving suggestions. © 2001 This site and all of its content are protected by copyright pursuant to U.S. and international copyright laws. You may not copy, download, publish, modify, transmit, reproduce, create new works from, distribute, sell, loan, nor in anyway exploit any of the matedal contained on this site in whole or in part without the express authorization of APl. Elements of API's web site are also protected by trade dress, trademark, unfair competition, and other laws and not be copied or imitated in whole or in part. No logo, sound or image from the site may be copied or transmitted unless expressly permitted by APl. Unless otherwise noted, APl grants users permission to copy, download, reproduce, transmit or distribute any documents contained in the APl Energy Consumer and Media Center sections of the site provided that: (1) the user includes API's copyright notice on all copies, and (2) the materials are not used in any misleading or inappropriate manner. http://api-ec..../printerformat.cfm?ContentID=AD717COE-51D9-4A5D-89AOC 17E9606DBE 04/23/03 OXYGENATED FUEL A Brief Overview Annette Bills Shell Oil Products, US Bakersfield Refinery 6/26/03 OXYGENATED FUEL The concept of using oxygenates in fuel started many years ago. The primary reasons for using oxygenates in fuel is to improve the 'burn- ability' of the fuel - either for performance or to improve quality of tail pipe emissions. MTBE has been the primary oxygenate of choice since about 1979. What is MTBE? MTBE (methyl tertiary-butyl ether) is a chemical compound that is manufactured by the chemical reaction of methanol and isobutylene. MTBE is produced in very large quantities (over 200,000 barrels per day in the U.S. in 1999) and is almost exclusively used as a fuel additive in motor gasoline. It is one of a group of chemicals commonly known as "oxygenates" because they raise the oxygen content of gasoline. At room temperature, MTBE is a volatile, flammable and colorless liquid that dissolves rather easily in water. Why was it used? MTBE has been used in U.S. gasoline at low levels since 1979 to replace lead as an octane enhancer (helps prevent the engine from "knocking"). Since 1992, MTBE has been used at higher concentrations in some gasoline to fulfill the oxygenate requirements set by Congress in the 1990 Clean Air Act Amendments. REQUIREMENTS Winter Oxyfuel Program Originally implemented in 1992, the CAA requires oxygenated fuel (gasoline containing 2.7 percent oxygen by weight) during the cold months in cities that have elevated levels of carbon monoxide. Ethanol is the primary oxygenate used in this program. Year-round Reformulated Gasoline Program: Since 1995, the CAA requires reformulated gasoline (RFG) year- round in cities with the worst ground-level ozone (smog). RFG is oxygenated gasoline (minimum of 2 percent oxygen by weight) that is specially blended to have fewer polluting compounds than conventional gasoline. At this time, about 30 percent of this country's gasoline is reformulated gasoline, of which about 87 percent contains MTBE. Refiners have chosen MTBE as the main oxygenate in RFG in cities outside of the Midwest primarily for economic reasons and its blending characteristics. Unlike ethanol, MTBE can be shipped through existing pipelines, and its volatility is lower, making it easier to meet the emission standards. CALIFORNIA To address its unique air pollution problems, California adopted similar, but more stringent requirements for its gasoline. · CARB Phase 1 (oxygenated fuel) · CARB Phase 2 (oxygenated fuel, lower sulfur, aromatics, benzene, olefins, etc.) · CARB Phase 3 (no MTBE ~ Ethanol, affects aromatics, benzene, RVP, shipping) HOW DOES THIS AFFECT ME? Bakersfield recently became and Severe Non-Attainment area and is now covered by the oxygenated fuel regulations. This came 'just-in-time' for CARB Phase 3. As mentioned above CARB Phase 3 gasoline primarily stipulates NO MTBE, and has therefore to some degree forced the use of Ethanol. With the use of Ethanol comes another set of quality stipulations on: · RVP · Benzene · Aromatics · Distillation · Sulfur · Aromatics CARB Phase 3 gasoline specifications effectively limit the total proportion of the Crude you can use in gasoline (reducing the total gasoline pool) and depending on the refinery configuration, requires the use of more expensive blend stocks like Alkylate and Iso-Octane. Ethanol is also a more expensive product than MTBE. The end result is less, more expensive gasoline. ETHANOL MAY NOT ACTUALLY BE A RENEWABLE FUEL While ethanol is a bio-fuel it may not be renewable in the sense that it is a green fuel. Corn is the primary source bio source for ethanol production, however the energy requirement to produce ethanol from corn may actually be greater than the energy saved by not using a non-bio fuel. ETHANOL TASTES BETTER Ethanol is an oxygenate and like MTBE has a high affinity or miscibility in water. In fact, ethanol has a higher miscibility in water than MTBE - Think mixed drink. Jet Skis, Motor Boats, and unfortunately any leaking storage tanks provide opportunity for the ethanol to be absorbed in the water. However, the affects on the human senses will be much less! There are several web sites you may visit to investigate further www.epa.gov\mtbe\gas.htm - Federal Program http://www.arb.ca.gov/cbg/pub/pub.htm - California Program Department of Toxic Substances Control Winston H. Hickox Agency Secretary California Environmental Protection Agency Edwin F. Lowry, Director 1001 "1" Street, 25th Floor P.O. Box 806 sacramento, California ¢5812-0806 Gray Davis Governor April 22, 2002 ~TO: Petroleum Project Stal~eholders FROM.'---- Alan ,ngham-~~~~ __ Office of Polluuon Frevendon and Technology Devel(~ment- SUBJECT: PETROLEUM REFINERY SOURCE REDUCTION PROJECT The purpose of this letter is to inform you that the Department of Toxic Substances Control (DTSC), with advice from the Pollution Prevention Advisory Committee on March 20, 2002, has made the difficult decision to withdraw the Petroleum Refinery Source Reduction Project from our 2002-2004 Workplan. As you are aware, the Project was designed to include community stakeholders working with local refineries to develop pollution prevention projects. In my February 19, 2002 letter to Petroleum Project Stakeholders, I informed you that due to the events of September 11, 2001, and concerns for terrorist attacks on petroleum refineries, DTSC made the decision not to publish the petroleum refinery profiles compiled in 2001. We had hoped that we would be able to utilize portions of the refinery profiles as the basis for subsequent discussions among the refineries and local stakeholder groups. 'DTSC forwarded a reqUeSt'to the California Environmental Protection Agency ('C'~ITE PA-)-fo 'fra-h-'E~it--a sa mf:)l~--C-oprofil~-'t-o- th~-Go~-Et~o7%-St~t~Widb~St~r~te~ic 'Cb-rnmittee-- on Terrorism (SSCOT) to determine which sections could pose a threat to refinery security. We have been informed by Cai/EPA that SSCOT is just beginning to investigate guidelines on public information access and that a decision on our request is not likely in the short term. In light of the delay and uncertainty when SSCOT will respond, DTSC has decided to drop the petroleum refinery project as currently planned. The energy challenge facing Cafifornia is real. Every Californian needs to take immediate action to reduce energy consumption. For a list of simple ways you can reduce demand and cutyour energy costs, see our Web-site at www. dtsc. ca.gov. Printed on Recycled Paper Petroleum Project Stakeholders April 22, 2002 Page 2 We are now investigating large business project alternatives. We intend to provide a short list of options and DTSC's recommendation around May 1, 2002. We will post these on the DTSC Website. We will seek feedback up through mid May on the new large industry source reduction project. One of the possibilities that we are looking at is some other type of pollution prevention project involving refineries. (Not based on the profiles and public involvement.) My staff and I are most disappointed that the originally proposed project with active public involvement cannot move forward. We sincerely appreciate the time, effort and support you have given to our pollution prevention efforts. If you have any questions, please feel free to contact me at (916) 322-5629, aighan~dtsc.c~t.gov, or at the letterhead address. BAKERSFIELD PUBLIC WORKS DEPARTMENT 1501 TRUXTUN AVENUE BAKERSFIELD, CALIFORNIA 93301 (661) 326-3724 October 1,2002 RAUL M. RO.IAS, DIRECTOR · Cfl'~ ENGINEER Utah Pacific Construction Co. 40940 Eleanora Way Murrieta, CA 92562-5946 Re: Mowhawk Sewer Phase II - Disposition of Soil at Station 38+75,- As you are aware, during excavation, a possible dump site for old laboratory equipment was discovered on the very edge of the trench for the above mentioned project. As such, a small amount of this material was dispersed throughout the spoil pile at approximately station 38+75. After review by Shell Oil and the City of Bakersfield, it has been determined to a reasonable certainty that the soil in the spoil pile is not hazardous and is suitable for use as backfill material. As such, Utah Pacific is hereby directed to use the soil in this area as trench backfill material. While the City is reasonably certain the above referenced soil is not hazardous, a sample of the soil is currently being tested for levels of hazardous materials. Should these tests show the soil to be a hazardous material, the City of Bakersfield may require the soil to be removed and disposed in a proper manner. If done by Utah Pacific, this work would be paid for as extra work. It should be noted, however, that the City reserves the right to use other forces to remove and dispose of any hazardous material discovered during the course of the project. Should you have any questions regarding the above, please contact Rick Millwee, Construction Supervisor, at (661) 326-3527. Sincerely, Raul M. Rojas Public Works Director Stuart Patteson Construction Superintendent cc ,,Rick Millwee, Construction Supervisor v Howard Wines, Hazardous Materials Specialist - Fire Dept. Construction File G:\GROUPDAT~ConstructionkLettersk2002\Utah-Mowhawk S~wcr No Hazardous Soil.doc TIME. 1540'l . IOSPR'[ OES- Sibyl Cl~( t.a, PE~ON NOT~YINC GOV~NOR'S O~S: L NA~: 2. AGENCY: 3. PHON~: BH~ Pello~ , ,~uilon EnthUses 1-661-326~01 1. NA~: 2, AGENCY: 3. P~ON~: 2. S0~T~CE T~E: ~ a. S~BSTANC~ b. QTY:~=~ Amo~t ~. Sul~r Dioxide ~ ~00 Lb~. ~Ni~ogen O~ide ~ I0 Lb~. - ' I$:$$ From-OE$ HG SAC/~A~NTO ~t/C 916-845-8910 T-g?$ P.O01/O01 . GOVERNOR'S OFFIGI~ O~ 1:lVll:,K~r_Plk,! ocnvJ,.,,=o Hazardous Materials Spill Report , ico~i~o~: ,- JOES. 02-sz?3 ,I~N_~c- ,, ~ 4. Ext: il. PAG/CI~LL: 4. Ext: 5. PAG/CELL: c. TYPE: VAPOR V^POR d. OT~LER: F-659 3. Nitrogen Dioxide > 10 I.b~. VAPOR e. DESCRIPTION: Mechanical failure caa~ed this release. f. CONTA~ED: g. WATER INVOLVED: No No 3. a. INCIDENT LOCATION: 3663 Gibson b. CITY: c, COUNTY: Bakersfield Kern County 4. INCIDENT DESCRIPTION: a. DAT£;09/27/2002 b. TIIV~ (Military): 1330 d. INJURIE~ e. FATALS #: 0 0 c. SITE: Rd'mory t. EVACS #: 0 h. WATERWAY: d, ZIP: 93308 CLEANUP BY: N/A 5. SUSPECTED RESPONSIBLE PARTY; a. NAME: b. AGENCY: Brian Pelleas Eqt~ilon Enterprises ~. MAIL ADDRESS: f, CITY: 3663 Gibson St, Bakersfield c. PHONE#: d, EXT,: t-661-326-4401 g, STA~: 6. NOTIFICATION INFORMATION: ~. ON SCENE: b. OTHER ON SCENE; h. Z~IP: 93308 e. OTHER NOTIFIED: d. ADM~N. AGENCY: aak~tsfi~ld Fire I~panm~nt f. NOTIFICATION LIST: nOG unit: e. SEC, AGENC~g': Kern Co, l~nvlronm~ml Heakh Smi~s RWQC8 Unit: 5C ~ O~I~R Public Comment Period Draft Remedial Action Workplan for Tosco Site o.n DEPARTMENT OF TOXIC SUBSTANCES CONTROL DTSCis one of sLY Depat'tments wit!titi ~' the Califqt~nia:' .~ Protecti°~ Agen.~(~ '~ ~/The D~partmbnt's } ~mission is m reStore~ ~ protect: a~td'en liqnce ~ Y the environment; ~o ens~PUbHC he~[ ~ ,:~nvironmental~ ~ ~quali~ ~nd / ~econOmic ~itaii~j by'regula~ng~' . ~ hazardouS: was~ .: ':overseeing ::~ cleanup& and ~ deveiop~ng .: ~ ~ andprOmoti~tg} ~oaution prevention.' ~ :Environmental Introduction The Department of Toxic Substances Control (DTSC) is requesting public comment on the Draft RemedialAction Workplan (RAW) and the California QualityAct (CEQA) proposed Negative Declaration for the Tosco site (Site) located in Bakersfield, Califomia. The Draft RAW describes proposed cleanup of soil containing petroleum coke. This fact sheet contains information concern- ing the public comment period, Site background, the Draft RAW, the proposed Negative Declaration, information repositories, DTSC contacts, and mailing list information. Public Involvement The public comment period begins on Friday, August 9, 2002, and ends on Saturday, September 7, 2002. Written comments should postmarked by Friday, September 7, 2002 sent to: Albert Fujitsubo, Project Manager Department of Toxic Substances Control 1515 Tollhouse Road Clovis, California 93611 afujitsu~dtsc.ca, gov The Draft RAW and other Site related documents are available for public review at the following information repositories: Beale Library 701 Truxton Street Bakersfield, California 93301 Contact: John Walden (661) 868-0775 Department of Toxic Substances Control, File Room 1515 Tollhouse Road Clovis, California 93611 Contact: Barbara Doehring (559) 297-3905 The e, ergy challenge .fbcing Cal(~mtia is real. Evecy Cal~lbrniai~ ~teeds to ta~'e immediate actio~ to reduce eneix)' c'oll$ltmpliol2. ]Z'or a /is/qfsimple wa):~' you can reduce demamt and ctti'jJottr c~let'~v co.s'ts, sec ot~r wcbsit(; at w~,a,~dtsc, c'a.gov. Site Background The Site is located on the southeastern portion of a 30-acre parcel, approximately 75 feet north of the Kern River in Bakersfield, California. From approximately 1964 to 1987, the Site was used by various companies, including Tosco, as a petroleum coke storage and production facility. Petroleum coke is a by-product of the petroleum refinery process. Since then, the Site has remained vacant and unused. Manufacturing processes used in the past resulted in piles of excess petroleum coke being left on the surface of the Site. With oversight fi-om DTSC, the Tosco company will clean up the Site in accordance with an approved RAW. Draft RAW The Draft RAW proposes the following: upgrading an existing rail spur so that materials can be trans- ported to and from the Site via railway, mobilizing equipment, establishing a field office, and conduct- ing a wildlife survey to insure no "taking" of'endan- gered species. Once these activities have been completed, separa- tion and screening of approximately 80,000 tons of petroleum coke will occur. Large pieces of debris, such as concrete, trash, and asphalt, will first be removed. After this preliminary separation, the petroleum coke will pass under a powerful magnet to remove any remaining unwanted metal. The fmal outcome of separation and screening will be petro- leum coke that is usable as a fuel source. The useable petroleum coke will be transported via rail to Chemical Lime, a limestone quarry and lime product plant in Peach Springs, Arizona. Petroleum coke not suitable for use as a fuel source will remain on Site for characterization, manage- ment, and eventual off'site disposal in accordance with DTSC approved workplans developed specifically for these activities. Additionally, debris collected during the segregation and separation process will be characterized, managed, and disposed of off.site in accordance with all applicable local, state, and federal requirements. After removal activities are completed, front-end loaders and graders will return the area to its original surface grade. Should any unnatural depres- sions remain after surface regrading, clean fill will be used to backfill those areas. The final step in the project will be removal of utility services, sanitation equipment, the field office, rail cars, and equipment used during the cleanup process. Dust control measures will be imple- mented during handling of material and loading operations. Water runofffrom dust suppression activities is anticipated to infiltrate naturally into Site soils with little or no runoff. However, a temporary stormwater control berm (consisting of staked hay bales) will be placed south of the stockpile, ap- proximately 25 feet north of the Kern River, to ensure that any unexpected water runoff does not go beyond Site boundaries. California Environmental Quality Act The California Environmental Quality Act (CEQA) is a statute that requires state and local agencies to identify the significant environmental impacts of their actions and to avoid or mitigate those impacts, if feasible. In accordance with CEQA, DTSC has determined that the proposed removal action poses no significant impacts and is therefore eligible for a Negative Declaration. More Information II'you have any questions or would like additional information please contact: Albert Fujitsubo, Project Manager Department of Toxic Substances Control 1515 Tollhouse Road Clovis, California 93611 (559) 297-3949 afujitsu~dtsc.ca, gov or Randy Sturgeon, Public Participation Specialist 8800 Cal Center Drive Sacramento, California 95826-3200 rsturgeo®dtsc.ca.gov (916) 255-3649 Media Contact Hearing Impaired TDD users can obtain additional information about the Tosco Site by using the California State Relay Service 1-888-877-5378 and requesting to contact Randy Sturgeon at (916) 255-3649. Ron Baker, (916) 324-3142 Public Information Branch Chief P.O. Box 806 Sacramento, CA Mailing List Coupon Name: Address: City, State, Zip Code Phone Number: Fax Number: If you have any comments concerning the Tosco Site or if you would like to be put on the Site specific mailing list, please take a moment to fill out the information below and mail it to Randy Sturgeon, DTSC, 8800 Cai Center Drive, Sacramento, California, 95826-3200. DTSC mailings lists are solely for the purpose of keeping persons informed of DTSC activities. Mailing lists are not routinely released to outside parties. However, they are considered public records, and, if requested, may be subject to release. 04-19-ZOOZ 10:0? Frem-OES HQ SACRA~NTO W/C ~16-845-8910 T-916 P.O01/O01 F-T44 0940 1.a. PERSON NOTII~[ING GOVERNOR'S OES: 1. NAME: 2. AGENCY: 3. PHONE#: Siiz~eth Ray Shell Bakersfield Refinery 661-326-4394 l.b. PERSOfl REpo'L~TI~ ~Y~P~,' (Tf different from above): 1. NAME: 2. AGENCY: 3. PHONE//: 4. Ext: 4. Ext: 5. PAG/CELL: 5. PAG/CELL: d. OTHER: 2. SO2 = 500 Lbs. VAPOR e. DESCRIPTION: Per caJler, substance waz released our of a fl~e ~ack due to a PG&E power f~e. ~ CO~~D: g, WA~R ~OL~D: h. WATERWAY: Yes No 3. a, INCIDENT LOCATION: 6451 Rosedale Hwy b. CITY: e. COUNTY: Bakersfield Kern County d. ZIP: 4. INCIDENT DESCRIPTION: a. DATE:04/19/2002 b. TIME (Military): 0820 d. IN'JURIES~ e. FATALS #: 0 0 c. SITE: Ret'm~y f. EVACS #: 0 g. CI.~_4~NUP BY: Unknown 5. SUSPECTED RESPONSIBLE PARTY: a, NAME: b. AGENCY: Eli~'beth Ray Shell Bakersfield Refinery e. MAIL ADDRESS: f. CITY: 6451 Rosedale Hwy Bakersfield c. PHON~#: d. EXT.: 661-326-4394 g. STATE: CA h. Z/P: 6. NOTIFICATION INFORMATION: L~ ON SCENE: b. OTRER ON SCENE: ! c. OTHER NOTIFIED: d. ADMIN. AGENCY: B~ker~field Fire l~partmen! e. SEC. AGENCY: Kern Co. Environmental Health Services l~pt f. NOTIFICATION LIST: DOG Uni~: RWQCB Unit: $C 12:55 Fro;-OES HQ SACR,~ENTO ~/C TI~: 1141 I OES. SibylCl~k t.~, PE~ON NOTIFYING GOVgR~OR'80~8: 1. N~: 2. AGENCY: ~. P~ON~: Doug ~ompson She~ Oil Ptodac~ 1-661-326~557 I.b. PERSON REPOR~G SPILL ~f different from above}: 1. NAME: ~. AGENCY: 3. PHONEg: g16-845-Bg10 T-6~8 P.001/001 ~JV~K~iUK'U urrlula ~1- laMI=KL~laNGY ~ERVICES Hazardous Materlala Spill Report 4, Ex~: 4, E~t; F=??I CONTROL#: OES. 03-$779 N,RG-704729 s. PAGICg-LL: S, PAG/CELL; 2. SUBSTANCE TYPE: ' -- 2. a. SUBSTANCE: b. QTY:~[]< Amount Mere'ute e, TYPE: d. OTHER: 1. Nitrogen Dioxide = 10 Lbs, VAPOR o. DESCRIPTION: Ma:erial releaaed from a r~finery flare due to shutdown ora refinery uait, Will get release under control and start uni~ back up, f. CONTAINED: g, WATER INVOLVED: h. WATI/RWAY: No No L DRINKING WATER IMPACTED 3. a. INCIDENT LOCATION: 6451 Rosedale Hwy, b, CITY: ¢. COUNTY: Bakersfield Kern CounW d, Z/P: 4. INCIDEb~r DESCRIPTION: a. DATE.,I 1/07/2003 b. TIME (MIIIta09:1436 d. IN2fURIES~ e. FATALS #: 0 0 C. SITE: Refinery f. EVACS #: 0 g. CLEANUP BY: same,ad #1,"PERSON:NOTIF¥1~tO, OE87[ 5. SUSPEND ~SPONSmLE P~TY: a. NA~: b. AGENCY: c. PHONE~: d, EXT.: Doug ~ompa~ Shell 0il Products 1-661-326-4557 e, MAIL ADD.SS: f. C~: g. STAT~: PO Box 1476 Bake~field CA h. ZIP: 93308 6. NOTLFICAT/ON INFORMATION: {a. ON SCENE; OTHER ON SCENE: e, OTHER NOTIFIED: d, ADMIN. AGENCY: Ba~rafieJa Fire D~panmcm L~F~-qA e. SEC. AGENCY: Kern Co. -Envimnmcn[al Health RWOCB U~LT: Dcpt [-"[ u$~ [] USCG pdate First Quarter 2003 Safely Day... "WE THE PEOPLE" Kevin O'Brien, s~of Bob O'Brien, Manager of Operations, and bs Centennial Hi~School We the People: the Citizen and the Constitution" team w~ first in California state finals February 7. This was the second y. ea¥,~,n a row. To prepare for the state co~petition, the students trained for a year, building their knowledge~f ~e Constitution ~om its the be ginnings to recent decisions by th~u.s. Supreme Coup. Jean Yves Martinez, #1 Craft Mechanic, presents Gail Wilkins of Timec with a hot cup of coffee as he greets her at a Shell Bakersfield Refinery gate on the refinery's Safety Day. Martinez is a member of the Health and Safety Committee. The event was a combination "Thank you and keep up the good work on safety". As employees, drivers, visitors and contractors entered several gates, they signed a banner reaffirming his or her commitment to safety and safe performance. B.J. Weidinger, during 2002, employees\and contractors gave the Gift of Life by contributing over 170 units of blood during facili¥ initiated blood drives. In 2003, blood drives are scheduled for May, July, Octo- ber and December. ¢0Cg6 VD 9Zlz L xo~ 'O'd St'1 s npo d I!0 Ileqs /qoJDS pud tueLudole^ec! puo 6u!uJoe1 JeBouoW e~,!S ,~e I'-.,I :]CllgNI Oil Produ JS ~Sheii '~k~r~field Refinery ~ Community Update SITE MANAGER CHANGE The Shell Bakers- field Refinery got a new site manager effective April 1. Glenn E. Cain, who had been the local Site Manager since Feb- ruary 2002, will be the new Manager of Environ- mental at the company's refinery in Port Arthur, o ,i Texas. In that capacity, E. Cain he will be reporting to Refinery Manager, Tom Purvis who previously had been the Site Manager of the Bakersfield facility. According to Aamir Farid, General Manager of First Quarter 2003 \ the Bay Valley Complex (BVC).~at includes both the Shell Bakersfield f,acility and the Shell r'~finery in Martinez, Cali- fornia, Cain s move demonstratesx!he importance of envi- ronmental issues at the Port Arthur f~cility. Replacing Cain is Jeff Krafve~',. Reliability and Main- tenance Manager for the Bay Valley Complex. Jeff is well acquainted with the Bakersfield operation having worked at the local operation in 1982 as a medhanicat engineer in maintenance engineering, inspection, ar~d project engineer- ing functions. In 1990, he began work at the Puget Sound refinery in Washington State. After thaf!assignment, plus stints at company operations in Kansas and Houston, he returned to the Shell Bakersfield Refinery in 2000 as Pro- duction Services Manager. In 2001, he became the BVC Reliability and Maintenance Manager in/~artinez, Califor- nia. SITE MANAGER MESSAGE... There are mo stories in this issue of Community Update that focus on critical interrelated initiatives for our refin- ery operation. The first is related to coordinated ap- proaches to health and safety within the refinery. The second covers the continuous training of our staff on refin- ery processes and procedures. Recently, the refinery's Health and Safety Committee reviewed and updated its charter. The union and non- union representatives who comprise this committee re- viewed their objectives for the committee and opportuni- ties to increase the visibility of safety approaches and practices. Among its objectives the committee focuses on health and safety from a refinery-wide perspective; upgrading the safety culture and improving the safety environment; ~creasing safety initiatives; dealing with unsolved safety ~ssues; and enhancing employee education and shared learning abut safety. As this committee and all employees work together on important health and safety issues, they are making a reality the refinery safety slogan "Nobody Ever Gets Hurt." The Learning and Development Department focuses on ini- tiatives to increase employee education and shared learning. This department has a major responsibility to help ensure that each employee who works with the processes and proce- dures at the refinery has the latest knowledge and skills to perform professionally. To accomplish this, the training staff and the refinery ex- perts work together along with other Shell Refineries to make sure that employees always take a professional approach to their jobs. This training responsibility is vital as employees work with the multiple and complex processes to produce the wide range of energy products each day. Both of these articles and their focus demonstrate that a positive attitude toward health and safety coupled with pro- fessionally implemented procedures are basic to an effective refinery operation. ...Glenn E. Cain HEALTH AND SAFETY....A Real Focus The plant vision or safety slogan for the Shell Bakersfield Refinery (SBR)~ is "Nobody Ever Gets Hurt" Helping to make sure that the slogan carries over in into day to day operations is the tasI'. of the SBR Joint Health and Safety Committee com- posed of both union (PACE) employees and .management employees. Under contradtual provisions, the committee membership will include no fewer than two and no more than four union employees plus one union alternate and no fewer than two and no more than four management employees plus one alternate. A major goal of the committee is to impact safety across the refinery. To accomplish this, the members should have a solid range of experience in operations, 'r~c~'iht~n~a-n~z~e, 's~'f&i~ a-~d-'~se~uFit~, i~scies. Current members meet those criteria. Members include Pace employees Jean Yves Martinez, #1 Craft Me- chanic; Chris Cassady, Loader Blender B; Eddie Cabral, #2 Operator; Don Hall, Loader Blender B; and alternate, Victor Hicks, #2 Operator. Management employees include Bob O'Brien, Manager of Operations Fred Hrenchir, Supervisor of Health and Safety; Marcia Zimmermann, Senior Process Engineer; Keith Torres, Supervisor of Maintenance and Planning; and alternate, Barbara MacDonald, Safety Technician. Serving as an ad hoc PACE representative is Alan Gettman. The major sponsor of the SBR committee is the Bay Valley Complex Safety Steering Group that is composed of union and management repre- sentatives from the Shell Martinez Refinery and the Shell Bakersfield Refin- ery. Don Hall, one of the h,vo co-chairpersons of the SBR committee, is on the Bay Valley Steering Group. According to the SBR committee co<hair, Bob O'Brien, the mission of the group is to promote and improve the health and safety of all employ- ees at the refinery. It also serves as a forum for employees to bring health and safety issues to the joint committee. In its new charter, the committee is charged with raising and dealing with health and safety issues that: · Have broad, plant-wide perspective · Are proactive · Increase employee education and shared learning · Include auditing methods, condition and standards · Upgrade the safety culture and improve the safety environment Left to right: Keith Torres, Chris Eddie Cabral, Alan Gettma?,, Jean Yves Martinez, v_ xHrenchir, Victor Hick~, Bob 0 Brien. Not pictured ar~\Dor~ Hall, Marcia Zimmermann, Barbara MacDonald. · Enhance visibility through sponsorship'~and leadership · Promote participation by all employee'\in safety reviews · Deal with unresolved safety issues \~ "We are determined that the objectives we I~ave established will :be specific, measurable, attainable, results-oriented a~nd time-framed," added Don Hall. During 2003, the committee plans to be more ~/jsible, initiate effective communications programs with employees on safely, ensure that audit programs are plant-wide, increase the gathering of reformation, and make additional recommendations that improve the safety environment facility. "I'm enthused by the energy each member is bringing to the committee's efforts Our group is able to work on difficult issues, discuss differences in a constructive manner, and arrive at the best answer for the health and safety of all our employees," noted O'Brien. I in this Case...Safety Does "SLIDE" From television show to reality and not "Reality TV." In California, tech- nicians in the Bay Valley Complex, which includes the ~o California- based Shell Oil Products US refineries in Bakersfield and Martinez, have installed an innovative safety device called the Baker Life Chute. They had seen the device on television and met with the manufacturer to see if it could be used in an environment with tall refinery equipment. The chute is made of braided nylon and looks like a large elongated basketball hoop. It provides an escape route for workers who might be trapped on the upper floor of hotels, air control towers and, in the case of a refinery, an oil-related processing tower. Following a demonstration by the inventor, both refineries formed project teams to determine the best possible use for the device. The teams had to determin.e how to guide the chute's exit over various obstacles and equip- ment found at a refinery. Using a cable to guide the exit ring to a predetermined location solved the problem. The final design being used at the ~o refineries is a tubular net made of heavy nylon cord. A stainless steel ring frames the opening at each end, allowing a steady stream of people to slide down the chute. The upper ring is secured to a structural A-Frame jointed designed by Shell and the inventor. The lower ring is attached to an anchor point on the ground. In an emergency, the chute can be deployed in 10-15 seconds pulling a cord, allowing people to slide through the tube and be on the ground within a minute. Last October, the Shell Bakersfield Refinery installed two chutes in the area where the Coker is located. Learning and Development. A Key to Professional Growth Before petroleum reaches the marketplace, it must go through a complex refining process. The Shell Bakersfield Refinery uses tern- perature, pressure, and catalysts to separate, reshape, and break apart the molecules to create the wide variety of products that go to the energy consumer. Effectively operating such a refinery requires high levels of em- ployee professionalism and expertise. Helping to ensure those lev- els are achieved and maintained is a key responsibility of the local refineryls Learning and Development Department. "The department works on parallel tracks. One involves the daily training of employees. The other focuses on the regular review and upgrading of materials to ensure their validity for the training" noted Mike Roberson, Learning and Development Supervisor. The magnitude of training materials upgrading is that local refin- ery employs approximately130 operations manuals. The Learning and Development Department reviews these on a regular basis, some quarterly, and depending on the processing equipment, others as needed. The frequency of this review will depend on company as well as government mandates and normally involves local experts, Shell professionals at other refineries, and specific vendors who work with the equipment in question. To coordinate this process, the department team includes four full time training coordinators led by Roberson. Subject Matter Experts, who are primarily operations specialists and process engineers fully acquainted with particular refinery unit operations and procedures, bolster their knowledge and expertise. Before a Subject Matter Expert can assist the training by partici- in a review process, that person must have been working with equipment or procedures for a minimum of two years. This team completes a typical process review by focusing on three main areas: The equipment and its operation, safety considerations and environmental issues. The department employs what are called technical review proce- dures. Basically, this involves the gathering of data from local opera- tions, Shell Oil and vendors. This is followed by a comprehensive Refinery Military VETS.... Front Row: Glenn Cain, Dan Daniel, Don Jani Champlin, Frank Delgado, Cain M~ldonafo Back Row: Roberson, Bob O'Brien, Martin Guerra, ~dward ~afner, Shatswell, Paul Shumway technical review and a finalization of the manual con'tents. The manuals are validated by training coordinat.~r~ review sessions and form the basis for the appropriate workbook and testing for training. To meet their objectives, the local refinery department works in close coordination with training departments at eight other ~hell refineries in the United States. As a part of the Bay Valley Complex! the Shell Bakers- field Refinery works in close coordination with its sister r~.finery in Califor- nia, the Shell Martinez Refinery. The sharing of materials and train ng procedures ensures consistency with similar refinery I . ~rocess~ng opera- tions. Some training is handled in the refinery. Trainers complete other train- ing at the Learning and Development Center in Bakers,field that contains laboratories, an auditorium and workshops. ...a Salute to Service I Shell O,I $ kerSfield Refinery THE C ATA L' ST I Site Manager Message In this first issue of The Catalyst, I want to take this opportunity to tell you how much I appreciate your efforts to make the Shell Bakersfield Refinery an outstanding facility within the Shell family of companies. For over 70 years our operation has gone from the time of the Great Depression though decades of war, social change, growing energy demands into a new century. During that time you and your predecessors have demonstrated the outstanding dedication and profes- sionalism demanded at what is the largest refinery in Kern County. Your performance has resulted in our operating a facility that grown from a refining capacity of 1,500 barrels of crude oil per day to approximately 70,000. We have expanded our products from producing only gasoline in 1932 to offering our customers a wide range of petroleum products in 2003. Your efforts have made the Shell Bakersfield Refinery a major Premier Issue 2003 economic presence in Kern County, providing millions of dollars in payroll and taxes, x Your initiatives have also mad~exthe refinery into a major community service player as we support a wide range of needs from education to healthcare,\,~enior citizen concerns to children's issues. ~ Shell Oil has a strong history of core, reunify service. But a truly successful effort must involve the s~pport and energies of employees. In 2002, our refinery laundhed it formal Em- ployee Volunteer Program that provides ~ framework encour- age you to get involved in the kinds of community services of interest to you. ~ As we move into 2003, we can be proc~d that we are a: * Economic Force * Community Service leader ~ * Provider of critical energy needs to our~customers Our refinery only succeeds in these efforts through the involvement of you and, certainly, with the support of your families. At the Shell Bakersfield Refinery, we are a family-- a family of professionals working together to ensure that we continue to be successful in the energy marketplace both locally and internationally. Employees Join Police Run For Kids Over 40 refinery employees and their families participated in the 20th Annual Police Run held in November. They joined over 500 runners who helped raise funds for the education costs of children of police officers who have died in the line of duty. Monies raised in the Police Run go for expenses associated with higher education. The Shell Bakersfield Refinery was a proud sponsor of the event. Inside this issue Health and Safety. .... page 2 Day of Caring.***page 3 Year of Service ...pages 4-5 Maintenance Record....page 6 Holiday Party....page 7 Employee News .... page 8 Editors Note Keeping employees fully informed of activities at our facility is vital to the success of the refinery. Achieving that objective has involved the effective use of several communications tools including meetings, memos, emails, bulletin boards, and more. It now includes The Catalyst. Our new employee publication will be a quarterly update focusing primarily on employee news. That will include promotions, transfers, hobbies, exciting events, community volunteer opportunities and more. It will also include news about refinery operations, marketing, and Bay Valley Complex activities of particular interest to employees. have You are wel be of interest to yo tions, children, the information b SBR Catalyst in dialague Our plan is that The Carol, and important addition to con at our Shell Bakersfield Refinery. ~ i sudh as ma~/riagesi ~gradua. : and ex..i:~erler, ce. You can alS0 send FileOpen-Other Users Folder, 'F/Pe in your help, wi~ be a welcome Health & Safety Commitee The plant vision or safety slogan for the Shell Bakersfield Refinery (SBR) is "Nobody Ever Gets Hurt". Helping to make sure that the slogan carries over into day to day operations is the task of the SBR Joint Health and Safety Committee composed of both represented (PACE) employees and non-represented employees. Under contractual provisions, the committee membership will include no fewer than h,vo and no more than four union employees plus one union alternate and no fewer than h, vo and no more than four management employees plus one alternate. A major goal of the committee is to impact safety across the refinery. To accomplish this, the members should have a solid range of experience in operations, maintenance, safety and security issues. Current members meet those criteria. Pace members include representatives Jean Yves Martinez, #1 Craft Mechanic; Chris Cassady, Loader Blender B; Eddie Cabral, #2 Operator; Don Hall, Loader Blender B, and; alternate, Victor Hicks, #2 Operator. Management employees include Bob O'Brien, Manager of Operations; Fred Hrenchir, Supervisor of Health and Safety; Marcia Zimmermann, Senior Process Engineer; Keith Torres, Supervisor of Maintenance and Planning; and alternate, Barbara MacDonald, Safety Techni- cian. Serving as an ad hoc PACE representative is Alan Gettman, PACE Safety Representative. In its new charter, the committee is charged with raising and dealing with health and safety issues that: * Have broad, plant-wide perspective * Are proactive * Increase employee education and shared learning * Include auditing methods, condition and standards Left to right: Keith Torres, Chris Cassady, Eddie Cabral, Alan Gettman, Jean Yves Martinez, Fred Hrenchir, Victor Hicks, Bob O'Brien. Not pictured are Don Hall, Marcia Zimmermann, Barbara MacDonald. * Upgrade the safety culture and improve the safety environment * Enhance visibility through sponsorship and leadership * Promote participation by all employees in safety reviews * Deal with unresolved safety issues "We are determined that the objectives we have estab- lished will be specific, measurable, attainable, results- oriented and time-framed," added Don Hall. To keep employees better informed about safety issues and the committee, the team will distribute its monthly minutes by E-mai/, develop information for the employee newsletter, conduct safety road shows for operations and maintenance, develop safety banners, conduct safety quizzes, create a health and safety icon for company web site, and more. "I'm enthused by the energy each member is bringing to the committee's efforts. Our group is able to work on difficuli~x,~ issues, discuss differences in a constructive manner, and arrive at the best answer: for the health and safety of all our employees," noted O'Brien. Day of Caring On September 7, Shell Bakersfield Refinery employees once again showed their support for the local United Way by partici- pating in the annual Day of Caring. Approximately 30 employees and family members cleaned Mayor Visits During 2002, Bakersfield Mayor Harvey Hall toured the refinery to get a better idea of how the facility operates and what it contributes to the community both in terms of energy and community service. The Mayor also attended the "Shellabration" ceremony in April. windows, replaced ceiling tiles, and install~ flooring at the Ebony Counseling Center in Bakersfield. Involvement in the Day of Caring event ha~ become an an- nual affair as employees don special t-shirts, b~all caps, and a spirit of service. 37.-cent stamps on hand. You don't have to wait in line at the post office. The stamps are available to purchase during any business day and are sold at face value. You can also mail your personal mail from the refinery. Just bring it to the south end of Area 1 Admin and drop your stamped mail in the box marked Personal Mail. Mail is picked up each day at 3:15 p.m. Every business day, Human Resources also offers personal Airborne service at the company discount, which is about 40 percent. Contact Barbara in Room 7 for air bills and packaging materials. Airborne Express picks up packages at 4:15 at Gate 1. Catalyst Reporters Liz Ray Jim Lane B.J. Binning Renee Chance Janet Shreading Jani Champlin Barbara Nickell Thomas Parks Environmental and Air Department Project Engineering Accounting Safety Administration Learning & Development Human Resources Instrumentation, Analyzers B.J. Weidinger Chris San Juan Shannon Coburn The Catalyst Health Editorial Staff CS & IT Alan Spencer A-2 Operations Janet Shreading B.J. Weidinger Editorial Consultant Larry Pickett Dress for Success 2002 A YEAR OF SERVICE funk to Ufe Financial Group employees at the Shell Bakersfield Refinery were instrumental in presenting the local Dress for Success orga- nization with a joint employee-company contribution of over $5,000. This group includes employees in finance accounting, procurement, and materials management. This group held an auction and related activities, devoting over 200 hours to raise funds to support the efforts of the Dress for Success, an organization that provides help to Iow-income women and men trying to make a transition into the workforce. Fueling up for the fight Fueling Up for the Fight...a great name for the Shell Bakersfield Refinery employees who battle against cancer at the annual Relay for Life. At the event, usually held in April at Cai State Bakersfield, employees raise thousands of dollars as individuals and as team members to support cancer survival and cancer research. The relay has featured over 130 teams. The SBR team has always been among the top ten fundraising teams. Allen Hall, Senior Project Engineer, volunteers his time to coach a girls soccer team, part of the Bakersfield Nemesis Girls Soccer Club. It is a small club consisting of one Under 13 girl's team. The team recently finished second in a local tournament called the Presidents Cup. The Shell Bakersfield Refinery and its e~pbyees demon- strated strong support for breast cancer research and prevention during a recent Link to Life event. This supp~ort included a $5,000 donation to promote prevention initibtives and award- ness programs. Community Reading Volunteers To help local school children, the following volunteers partici- pated in the Shell Bakersfield Refinery Community Reading Pro- gram during 2002. They included: Annette Bills Jani Champlin B.J. Binning Lorna Williams Keith Torres Celia Thompson Barbara MacDonald Pete Hambaroff Marcia Zimmermann Sandy Blanquette B.J. Weidinger Alan Spencer Rafael Terrero The Gift of Life According to plant nurse, B.J. Weidinger, employees and contractors gave the "Gift of Life" by contributing over 170 units of blood during blood drives in 2002. In 2003, blood drives are scheduled for March, May, July, October and December. Exact dates and times will be forth- coming as each blood drive gets closer. If any employees have questions about giving blood, they can contact the Houchin Blood Bank at www. hcbb.com Rescue Mission Ton of Turkeys On December 19 the Shell Bakersfield Refinery held its first "Ton of Turkeys" Campaign. Approximately 1 O0 meals were do- nated to the Bakersfield area Gleaners for distribution to local needy families. The main portion of each meal was a turkey donation by the lhell Community Relations Team. That team works with Shell refin- ery management to target and support numerous community rela- tions activities throughout the year. According to B.J. Weidinger, plant nurse and campaign co- coordinator, this was the first year recipients received a complete holiday dinner including the turkey. The other campaign co-coordinator, Janet Shreading, noted that "the Shell Bakersfield Refinery has a sincere concern for com- munity needs and this Ton of Turkeys campaign was a great oppor- tunity to offer holiday service." Exhi~ bers, and Rescue Mission sin. pany donates a 250 Mission guests. The eight to approximately 30 nurse, who organizes the sharing attitude, r~inery empl°yees, familY mem. been serving dinner at the Bakersfield 1999. Each month, the com- Shell representatives serve over volunteers has ranged from to B.J. Weidinger, plant night. Regular volunteers have includ~ BJ. and her husband, Steve, Robert Pino and his family; Bob O'B~n and son, Mikey; Janet Johnson; John Finch and family; Joyce I~i~ker; Cad Kjellson and daughter, Emily; Sandy Blanquette and h~ girb. The Shell Dinner takes place the second,Saturday of each month from 4:30-7:00 p.m. Mud Volleyball for Health Mud, fun and community service. That is what Shell Bakers- field Refinery employees enjoyed as they participated in the an- nual Mud Volleyball Tournament to benefit the local Epilepsy Foun- dation. During 2002, h,vo teams of 20 employees played, splashed, got stuck, and fell in the mud while having a great time ~llJsing money to educate the community about Epilepsy. :6 A Maintenance Milestone On June 27, the Shell Bakersfield Refinery Reliability and Main- tenance personnel passed the seven-year mark without a loss time injury. "This is a significant milestone that those folks should take pride in achieving. It means each member of the team contributed to the safety for themselves and for their co- workers", noted Glenn Cain, Site Manager. According to Keith Torres, Maintenance Supervisor, refinery personnel do not attain these milestones by coincidence or acci- dent. The milestone highlights the commitment and dedication to excellence practiced by Reliability and Maintenance personnel by Paula Adams Environmental Technician Two years ago I decided to go back to school. I hadn't been in school, except for EMT and pottery classes, in 25 years. Actually, taking the EMT classes was what helped me decide that going back to school was the right thing for me. I discussed which school I should go to with a few of my friends and found that Pam Motley was going to the University of La Verne. Pam spoke highly of the school and I bund that it had been established over 100 years ago and had a wonder- ful reputation. I checked out the school for myself and decided it was perfect for my work schedule. It was great going to school with a friend from work who took classes as seriously as I did. I learned a lot and found that learning new informa- tion was interesting and even fun at times, not to mention all of the new friends I made. The hard part for me was the amount of time it took. For two years I did nothing but go to work, home to study and/or go to school. This included the week- ends. I had to give up my beloved pottery classes and I only took a few single days of vacation as I took classes year round. My husband was very encouraging and helped around the house to ease some of the load. Without.his en- couragement and help, it would have been almost impossible. The deciding factor for going back to school, of course, was that the company paid for the tuition and books. The financial burden of sending my own daughter to college and trying to pay for myself as well was not an option. As we are all aware, it is very expensive to go to a college or university. I was very fortunate to be working for an organization that believed in educating and elevating the talents of their work force. I now have a Bachelor of Science in Organizational Management. foCL care o and the they work with "There is no better gauge of a groups compe- tency and profes- sionalism than their safety perfor- mance," noted Torres. "199 Miles To Go" Jim Roberts is a Number 1 Craftsman for Shell Bakersfield Refinery, assigned to the A-2 Maintenance Shop...his skill...Welding. He also has another talent... Jim enjoys run- ning. Every October for the past four years, he has partici- pated in an around-the-clock, 12-man relay race. The name of the race is the Providian Relay. All proceeds from the race are for the Organ Donorship Program. The race starts in Calistoga, CA and ends in Santa Cruz, CA, covering a distance of 199 miles. His team's name is Team-Outta-Gas. Each team member runs three different times during the around-the-clock period, which means each person on the team will run approximately 17 miles each. Last year there were a total of 300 teams in the event and Team-Outta-Gas finished 21 st overall and took 3rd place in the Corporate Team Division. The first year Team-Outta-Gas entered the race, they completed the race in 29 plus hours. Last year the team completed the race in 25 hours. Jim runs approximately 35- 40 miles per week. His goal- to run the event 12 years in a row, which will allow Jim to have run every leg of the race. He said "this would make for an excellent teambuilding exercise." Happy Holiday Party The Bakersfield Refinery Holiday Party was held on December 61 at the Doubletree Hotel. Over 250 guests attended the festivities that opened with a color guard and invocation. Both Aamir Farid and Glenn Cain said a few words and turned the event over to Master of Ceremonies, Greg Cervantes. The party committee that put it all together included Paula Adams, Chuck Alcorn, Sandy Blanquette, Greg Cervantes, Renee Chance, Dale Dow, Pete Hambaroff, Fred Hrenchir, Sharline Kelley, Jim Lane, Barbara MacDonald, Frenchie Martinez, Barbara Nickell, Amy Panici, B.J. Weidinger, and Brent Welsh. Night Success As 2003 began, First Night for Bakersfield was a great success. The following volunteers and their families braved the cold to help kids make various party items. Volunteers included Greg Cervantes and his wife, Donna; Silva Parrolivelli and son Angelo, B.J. Binning, husband, Matt and sons, Winston and Morgan, Carl Kjellson and wife, Silvia, Alan Spencer and wife, Veronica and Ernie Aguilar (TIMEC Auto Shop). WThe Annual First Night event is an opportunity for families to greet the new year in a supportive and safe environment. Special thanks go to JY Martinez, wife, Honey and daugh- ter, Melissa who helped with setting up the Shell Bakersfield Refinery booth. State Cham Premier Issue 2003 Congratulations to Kevin O'Brien, sonof Bob O'Brien, Manager of Operations. Kevin and his Centennial High School "We the People: the Citizen and the Constitution" team won first place in California state finals February 7. This was the second year in a row. The senior honors government class will now compete at the national finals. To prepare for the state competition, the students trained for a eight months, building their knowledge of the Constitu- tion from its beginnings to recent decisions by the U.S. Su- preme Court. Celebrating the recent holiday was Megan Eliza- beth Olson, Jim Lane's first grandchild. Jim is in Project Engineering. Great news for Brian Pellens on the birth of his new son, Joseph Jack. Young Joseph weighed in at over eight pounds. He has been getting acquainted with his sisters, BreAnne, 12, and \ Information "Alert" In December, members of the refinery ~lert Team visited Rio Bravo-Greeley Elementary School. The Tea~, responsible for dealing with to potential fires at the refineryi~ gave a short pre- sentation for the kids, showing them the fire engine, and passed out "Fire Safety" coloring books. Such events,are voluntary, but demonstrate refinery staff interest in providing important infor- mation to local school children. ~O~g6 VD 'PlegS~e~l~i 9Zlz I. xo8 'O'd srl spnpo.,d I!0 Ileqs : C1LENI C mmohi ty Update I Safety First...And Fast One of the key operating rules for Shell Bakersfield Refinery is "Safety First." Supporting this rule is the need for a quick response during an incident. With this in mind, refinery staff and a commercial industrial products company jointly developed the Fire Storm Foam Cart, an Kirk Shelton, Fire Chief, demonstrates foam cart. Second Quarter 2002 I emergencyXre~sponse devise unique to refinery settings. Should a f~ break out at the facility, the foam carts are available through~t the plant to provide fast and effective response. ~ Kirk Shelton, Fire Chief for the refinery fire brigade team, worked w~th Stang Induftr~al Products m Huntington Beach to design a cart that would meet refinery specifications. ;., \,~ One of the advantages qf the new foam cart is that one person can handle it when re.~ponding to a fire," noted Shelton. Each cart has 200 feet of 2.&inch diameter hose and a 750 GPM monitor to apply a water/foam solution. The refinery fire brigade is on alert 24-hours a day to re- spond to emergencies. The refinery~Staff brigade also has a long-standing relationship with local ~i,ty and county fire de- partments to provide assistance shouldx, that become necessary. Frequently, refinery firefighting staff~nd local city and county firefighters jointly attend training ~classes at such loca- tions as the University of Nevada at Elko:~and Texas A&M. "Safe and efficient operations reduces the potential for refinery fires," noted Glenn Cain, Site Manager. "The foam carts, along with other equipment, and Kirk Shelton's team ensure that we can effectively deal with such situations." alYd eB°lS°d SN (]/S-/~S~ld ~0~'6 VD 'Ple!Js~e~lD~l 9ZF / xo~ 'O'd X~l:::lNIJ=l~l Cll::II-IS~I=I)IV~t llqH~ S11 s )npoJd I!0 IleqS ,,uo!t JqOlleqS,, S ,q!uncuu o V : CI15NI > Shell Oil Pr°ducfSUS Second Quarter 2002 [Shell Bakersfield Refinery ~~ Communi Update MANAGER!.S SITE community about Shell Oil Company and~Shell Oil Products. We were pleased that both County Supervisor Barbara Patrick and Bakersfield Mayor Harvey Hall graciously dttended our opening cer- , emonies. Another important story involves Shell Oil Company's recent deci- sion to phase out MTBE from gasoline producbd for the Califomia market, replacing it with ethanol. We will complete that process by the end of 2002, a full year ahead of Governor Davis's recently an- nounced extended deadline. An important article discusses the wide range of activities related to community service demonstrated by our employees, their families, and Shell Oil Products US. Historically, many employees have been deeply involved in the community, helping organizations meet the needs of children, seniors, the sick, and many others. To encourage even greater involvement, we formally launched our Employee Volunteer Program in April. Within that program, employ- ees will be able to volunteer company-supported hours to help their neighbors. We are proud of our presence in Kern County....proud to be an efficient and safe operation .... proud to be a good citizen in our com- munity. As Site Manager, this is my first message in Community Update, a quarterly publica- tion we distribute to thousands of our neighbors in Bakers- field and Kern County. Its purpose is to keep you informed about what is hap- penin,g, at our facility, the larg- est refinery in Kern County. i As you may know, our ~ refinery had been a division Glenn E. Cain of Equilon Enterprises LLC, the Shell Oil and Texaco alliance. With the departure of Texaco, we are now operated under Shell Oil Products US, a major division of Shell Oil Company. In the midst of change, our 240 employees and approximately 150 contractors, continue to process about 70,000 barrels of crude oil per day into a variety of products. In this Community Update, there are articles that focus on our Shellabration that took place on April 24. This was an event de- signed to provide information to our employees and to the local IA Great 'SHELLABRATION" On April 24, the Shell Bakersfield Refinery held a 'Shella- bration.' It was a day- long event to provide additional informa- tion to employees and the surrounding community about Shell Oil Company. The refinery had been a major division of Equilon Enterprises LLC, a Shell Oil-Texaco, Inc. alliance. In 2001, Texaco merged with Chevron and sold its interest in Equilon to Shell Oil. To launch the 'Shellabration' Site Manger Glenn Cain hosted opening ceremonies during which the new Shell Bakersfield Refin- ery sign was unveiled and the Shell Flag was raised, replacing the Equilon flag. Bakersfield Mayor Harvey Hall spoke about the importance of the refinery and issued a proclamation celebrating the event. Kern ~ounty Supervisor Barbara Patrick also attended the festivities. ~ Employees Visited numerous displays describing the multiple, worldwide operations of Shell Oil Company. Currently, the refinery processes crude al/into a variety of prod- ucts including gasoline, diesel, fuel oils, coke, ammonia, sulfur, and LPG. (left to right) Chuck Flagg, former General Manager of the Bay Valley Complex, Bakersfield Mayor, Harvey Hall, Kern County Supervisor, Barbara Patrick, and Glenn Cain, Site Manager for the Shell Bakersfield Refinery. SHE[LABRATION New Shell Company information. I Caring for Kids... Another example of employee and company community service is involvement with the Kern County Child Care Council (KCCCC). The county Board of Supervisors and the county Superinten- dent of Schools started the KCCCC as the vehicle to serve as the local childcare and development planning council. Its purpose is to provide a forum for the identification for local priorities for childcare needs and the development of policies to meet such demands. Two local Shell employees are currently serving on the council, Barbie MacDonald, Health and Safety Inspector, and Alan Spencer, Public Affairs Coordinator. The Council is currently seeking individuals interested in serving as appointed members in the following categories: · 20% Child Care Consumer: a parent or person who receives, or who has received childcare services within the past 36 months. Aamir Farid (left) has assumed duties as General Manager of the Bay Valley Complex that includes the Shell Bakersfield Refinery and the Shell Martinez Refinery. He recently met with Glenn Cain, Site Manager for the Bakersfield plant. Farid has been with Shell for 24 years having served most recently in the company offices in Houston. A New Shell family. · 20% Child Care Provider: a perso~ who provides childcare services or represents peri'sons who provide childcare services. · 20% Public Agency Representative: a person who represents a city, county or local edudation agency. · 20% Community Representative: a person who represents an agency or business that provides private funding for child care service or who advocates for child care services through participation in civic or community based organization but is not a child care provider or California Department of Education funded agency representative. · 20% Discretionary Appointee: a person representing any of the above categories or outside of these categories at the discretion of the appointing entity. Appointments are for three year terms ~with members expected to attend the monthly general council meetings held on the first Wednesday of the month from 5:30-7:30 p.m. in Bakersfield as well as serve on one of the five standing committees. For more information, contact Tammy Burns at 661-636-4444. MTBE Story Shell Oil Products US has announced that it will discontinue the use of MTBE in gasoline supplied to California consumers by the end of 2002. The company will replace MTBE with ethanol. Shell is California's second largest gasoline marketer. Shell produces/sells roughly 18 percentof all gasoline in California. By switching from MTBE to ethanol by the end of 2002, Shell will beat California's offi- cial MTBE ban deadline by one year. An Economic Force... ...A Community Role While the Shell Bakersfield Refinery is a major processor of petroleum products, it also plays a significant community role in Bakersfield and surrounding Central Valley communities. As an economic force, the plant provides more than 240 jobs and aPproximately $30 million annually in payroll. It also pays about $3 million each year in state and local taxes. Built on a foundation of company and employee involvement, community service is also a major priority. Employees, retirees, and their families contribute to the quality of life in Bakersfield and Kern County as participants in civic, social, religious, and academic endeavors. This translates into hundreds of hours of volunteer time and thousands of dollars in contributions from both the company and individuals. Shell employees support United Way. Glenn Cain presents Beautiful B~kersfield Award. and education. \ All of these efforts symbolize significant contributions to the community and an enthusiastic working together fo solve mutual community challenges. The refinery has also initiated a renewed effort to keep the local community informed about what is happening at the refinery. An expanded Public Affairs function serves as a major link to the surrounding area. Public Affairs provides information on plant activities to neighbors, key community leaders, the news media, elected officials, and others. Working with a newly established Commu- nity Advisory Panel composed of civic and business representatives, Public Affairs monitors community concerns, attitudes and issues critical to the local plant and to the management of Shell Oil Products US. In April, the refinery formalized company efforts with a new Employee Volunteer Program through which employees can volunteer hours of time to support local community activities. The company has also been taking an even more visible role in recognizing employees for their numerous efforts on behalf of the community. Examples of such community involvement in- cludes scheduling blood drives, providing a site for community drop-off recycling, helping to build homes with Habitat for Humanity, assisting Toys for Tots, supporting Alzheimer research, serving meals at the Bakersfield Rescue Mission, and helping to onor Beautiful Bakersfield winners. For several years, the "Fueling Up for the Fight" employee team has been participating in the Bakersfield American Cancer Society "Relay for Life" This annual mo- day event involves employee activity to raise money to support cancer research Shell employees serve at Bakersfield Rescue Mission. ity Update ."the Shell Bakersfield Since 1998, the largest refinery in Kern County has been a major division of Equilon Enterprises LLC, a joint Shell-Texaco refining and marketing alliance. On March 1, the facility officially became a part of Shell Oil Products US and renamed the Shell Bakersfield Re- finery. In October, 2001, following Texaco's pending merger with Chevron, Shell Oil Company purchased the Texaco interest in Equilon Enterprises LLC for approxi- mately $3.8 billion. With the required regulatory approvals, Shell Oil Company has completed the deal and assumed sole ownership of western states refining and marketing for- merly operated under the Equilon Enterprises LLC ban- ner. "As a part of Shell Oil Products US, we have the dedicated people, the equipment, and the advanced technology to play a major role in meeting our customer's energy needs," noted Glenn E. Cain, new Site Manager for the refinery. More than 200 employees work at the Bakersfield facility which has bee'n part of what Equilon called the Bay tion, contim the Martinez ~ Shell Martinez R~ Bakersfield Plant ell Oil Prod i Shell Bakersfield Refinery Community SITE MANAGER'S Lynn Bourgeois For five years have had the pleasure of working at what has been the Equilon- Bakersfield Refining Company first as Asset Manager and then as Site Manager. This experience has given me the opportunity to work with an outstanding group of men and women, true professionals in the refining industry. Together, we have established an outstanding level of performance, each day processing approximately 70,000 barrels of crude oil into a wide variety of consumer products. Together, we have achieved these production levels while maintaining a safe and environmentally sensitive operation. The challenges for refinery operations are great as the demand for refined products remains strong, Whije~he ~u~be~.of~efi~erf operations in the Unitfd States decreases, operations at each facii'~ I~ke the Bakersfield Plant must work even m6reeffieientlY· ' The challenge is not just tO produce refined products. The sudcessful refine~ must maintain or lower operating costs and opti- mize financial demands tO, survive in the future. I know that all of our B~kersfield employ- ees will meet that challenge. My replacement, Glen~ Cain, will find a sucCessful ~efinery operation built on almost 70 years of history in the Central Valley. I wish Glenn and the 245 employees at what is now the Shell Bakersfield Refinery great success as they build on that history and move into an exciting future. OI L# 'H~U~ed ~:0~'86 VD 'Ple!~s~e~l~] 9ZF I. xo~ 'O'd X~t3NIJ3~t GI]IJS~I3)tV~I I!]~SI SI1 s )npoJd I."O IleqS New Site Manager Takes Over... Returning to Bakersfield as Site Manager is Glenn E. Cain who had been General Manager for Production at the company's Norco Refinery. Glenn graduated from Clemson University with a BS degree in Chemical Engineering in 1975. He started his career with the Exxon Refinery in Baytown, Texas as a Process Engineer. In 1976, Glenn joined Skelly Oil Company (Getty) at the El Dorado, Kansas refinery. In 1982, he transferred to the Getty plant in Bakersfield where he coordinated contractor pilot plan work among other responsibilities. He was transferred to Texaco's Houston Engineering Department in 1984 where he worked with advanced computer control strategies. Glenn served as Area Supervisor of Operations at the City Plant from 1989 to 1992. In 1993, he was promoted to Manager of Operations-West at the Star Enter- prises Louisiana plant where he directed operating activities for a number of process units. Glenn transferred to the Motiva Enterprises Norco Refinery as Refining East Manager in July of 1998. In March of 1999, he was named General Manager-Operations for five refinery operating areas. In April, 2001, he assumed the position as General Manager for Production and the respon- sibilities for wharf opera- tions, product blending, oil movements, laboratory testing and process unit operations. On February 1, 2002, he was appointed to the position of Site Man- ager for the Shell Bakers- field Refinery. Glenn is married to Lois Lea and has ~o children, a 13-year old son and a daughter in her fourth year · ~ at LSU. Glenn E. Cain ~!, ~Y~O:U~S ~OyOD~$To~e~ ~r~e~ o0:~oJce: ~ ~ / Alan ~enthal tar lire saving efforts. ~ ~,::~ ~: ~ ~: ~ ~'~: ~;~: ~,~ :~ ~ :~ ~:~.~ ~ ~ -~ ~:::, Io~t~ ~he~sen ~t electrom:caJ]y to:~e:~tv~S:efvtces ~n;~ ~: , Fourth D str ct Suoerv sar Don Knabb from Los On:tanuur,,:~2~ refme~ em~lovee~;~d~B'th~tr~art m Not everyone th,nks of accounhng as be,no h~gh Hou}t~: for~p~7 ~en~;to the oppro~r~,te Ve~or4 :~ ~}~: [ngeles County presented him with an "Award of ~:: donating blood, ~: .: ~. : ~' ~: ~::; ::~:: ~ ~:' ~olume, fast paced, and constantly changing. But Rec~y;~t~ company has~b~.~h~o~n~ ra~idiY to~ ~ Merit" citing his demonstration of service to the ~ During National V°lunteerBIdod':Don°r W~ek the that s the worbng enwronment for the Accounts electronic ~,m at procedureS: th.~9~gh ~he:~, re,ed , :: ~ county of Los Angeles and to the benefit of mankind. ~ refinery Wellness Team, headed by Plant Nurse BJ. Payable leam located at the Shell Bakersfield Refin- States banki~ ,S*~:m AuIoma:~e~ C~a~fig:Fl°u~e~ : :~ ' Congressman Stephen Horn also recognized ~ Weidinger, hosted the event. ............. x~: : ;.~ ~ ~. Hambaroff w~th a Cerhficate of Special Congres- The drive called G~ve Blood...T e G L e' was Sevenke eo ehandethsvta : ~ :: ~ ~ ~ ~ ~'~ ¢:~ ...... - ' ' ' ' ' o ton Y P P ~ ~ s~onal Recoamhon, c~hna h~s selfless act and be~na a welcome event s~nce dunng w~nter blood dna s ~ :~z~: ~: funchon not only for the Bakersfield ; ~ an outstanding roe model were down because of colds and flu problems. facility but also for the Martinez refin- ' ~.~.~.~.~J ~'{}~}~ ~: e y, ~,an,s conshtuhng ~ ........ .cf.: ~ company calls the Bay Valley Complex. prate s .. , S ese.. Working in the department are Sharline Kelley, Sharon Eastep, Susanne Cain, Janet Gardner, Sandy Fahsbender in Bakersfield. Jennifer Waters handles some accounts payable functions at the Martinez facility. Supervising the team is Linn Brown who has 25 years of accounting experi- ence at the Bakersfield facility "We have the major responsibility for vendor relations. That includes problem solving, checking for billing errors, confirming proof that services were delivered, tracing invoice history, working with Equiva Services in Hous- ton, "noted Brown. The Accounts Payable staff process all ~nvoices related to Bay Valley Complex activity. Normally, Bakersfield Refinery A/P processors handle about 16,000 invoices annually. This figure can go up to as many as 23,000 when a refinery completes what is called a Turnaround or Inspection and Testing of its operations. This process can involve a greater Accounts Payable Team -- (L to R) Sharline Kelley, Lin~ Brown, Sandy Fahsbender, Sharon Eastep, Janet Gardner, Susanne Cain?! (ACH) funds transfer system. Through this system invoice payments go directly into the vendor's business bank account. According to Brown, the cost of paying electron:i- cally through ACH is about 10 to 20 percent of that required to issue paper checks and wires. Life:Saver On February 5, Pete Hambaroff, Turnaround Field Coordinator, and a veteran of 29 years of service at the Bakersfield plant, was an honoree for heroism at the 31st Annual Meritorious Awards Luncheon held by the Long Beach California Fire Department. Last fall, Hambaroff was visiting his daughters in the Long Beach area when he noticed a man in the pool at the hotel where Pete was staying. The man was not swimming and his arms were outstretched. Sensing a problem, Pete dove into the pool. Others sitting around the pool responded to Pete's call to contact 911 and helped him pull the man from the pga After Pete had cleared the victim's lungs, two para-t medics provided assistance. According to recent reports, the man is recovering. Hambaroff has been the recipient of a Certificate of Recognition from the California state legislature signed Bob O'Brien, Production Manager (left) provided Carmine Falcone, Vice President Manufacturing and Supply for Shell Oil Products US, with tour of refinery facilities during recent visit to Bakersfield. The Shell Bakersfield Refinery uses temperature, with hydrogen, and passes th'~!~:~i~J pressure, and catalysts to separate, reshape, and at high pressure and moderate:~m'~il break apart hydrocarbon molecules to create a wide process converts the oils and range of consumer products, and diesel components. ~,,! ~::i !ii: ! .i~i~:.!i Crude oil is a complex mixture of hundreds of such Delayed caking converts hydr~,.C:. ~'b°Oi ~!olecQl~S.~ hydrocarbon compounds, composed mainly of hydro- too large for use in gasoline and c'ti~ii.e.l~a:.:~"~ n othergen andelements.carbon Theseals° including sulfur, nitrogenin and them down into smaller,that the usable varJ~'!~e~ ~, !~ ~ ,~ii! ~ i,~ :i! hydrocarbons range density Making sure temperatur~i~:??r~aa?i?h~! from materials as light as natural gas to those as heavy pressures are satisfactory, and liquid!i.--- --.--.-.- as road asphalt. ~!~:~i. i In crude oil, these sub- ~.: ........ !~;....; stances are thoroughly intermingled. Each com- ~pound boils at a different temperature. Distillation heats the hydrocarbon liquids, separating these substances by boiling the liquids until certain com- pounds vaporize, condensing these vapors, and collecting ~¢ the resuhing liquids. The Bakersfield plant processes California's Central Valley heavy crude oil. The refinery's heavy oil- targeted operations include crude and vacuum distilla- tion, hydrotreating, hydroc- racking, delayed caking, hydrogen generation, and Control room teams monitor refinery operations. catalytic reforming and sulfur recovery. Bottom product from the atmospheric crude distilla- correctly are responsibilities of control room techni- tion column is the feedstock for the vacuum distillation cians. Their consoles provide immediate information facilities. The best method to get good products from on refinery processes from the multiple stages of this bottom feed is to process it under reduced pressure product refining throughout the complex. dthin a vacuum tower. If the pressure is reduced, With the advanced tools of their trade, laboratory ~oiling takes place at a lower temperature. At lower testers insure the quality and uniformity of company temperatures, the lighter portion of the bottom feed- products. Control and quality testing of the finished stock can be distilled without cracking, product begins with crude oil and continues though all Hydrocracking takes intermediate oils, mixes them phases of the refining process. Community Update ..... SITE MANAGER...Featured speaker Fall 2001 Lynn Bourgeois, Site Manager, was a featured speaker at the Chamber sponsored luncheon for the 20th Annual Pacific Coast Oil Show and Conference in Bakersfield. The theme of the luncheon presentation was "Energy into the Future." Bourgeois, focusingon the refining or downstream future, emphasized that Cefining is a tough business, In recent years, the number of refineries in the United States has shrunk from over 300 to approximately 158 today. However, demand for refined products remains strong, putting greater output demands on refinery operations. In his remarks, Bourgeois noted that some of the chal- lenges refineries face include maintaining or lowering their operating costs and optimizing costs to operate refineries safely and in compliance with environmental requirements. "You have to be efficient and optimize your business so you can stay in business, he noted. Bourgeiois also pointed out that by the end of the year, his operation would be operating under Shell Oil Products Company. This follows Shell Oil Company's purchase of the Texaco interest in Equilon following that company's merger with Chevron. Bourgeois expects the refinery to continue to process approximately 70,000 barrels of crude oil into a wide range of consumer products. uo!amodO sa>npo~cI oL uccS · 0[ L# Huu~e8~1 Va plel~sJe>loEt I eSo~sod SOI (]±S-I~S~dJ s >npo d jo ,gue *P!TXl so>npo d ~ENTERPRISES LLC Shell ~, Texaco Working Together ~Eq~i!~n Bakersfield Refining Company Community Update Fall 2001 SITE MANAGER ,S Lynn Bourgeois On October 9, Shell Oil Company an- nounced that it had signed a memorandum of understanding to acquire Texaco, Inc's in- terest in Equilon Enterprises. Many people have wondered what will happen to Bakers- field Refining Company, which has been a major division of Equilon since 1998. Bakersfield Refining Company will be owned by Shell and will be integrated into Shell Oil Products Company. Beyond that, our 200 plus employees and key contractors will continue to operate an efficient and safe plant, producing a wide variety of consumer products. Bakersfield Refining Company has been a major part of the Kern County energy scene for over 60 years. During that time we have experienced changes in ownership, expanding facilities, increased capacity, and product additions. We have also ben- efited from the efforts of an increasingly knowledgeable and professional family of employees who have played an integral role in that energy history. As we look to the energy future, espe- cially the refining or downstream side, we are confident that Shell Oil Products Company will meet projected marketplace challenges. In the past 20 years, the number of refin- eries in the United States has shrunk from over 300 to approximately 158. This has happened for a number of reasons including a lack of resources to upgrade operations, an inability to meet financial demands, or to satisfy emis- sion control requirements. This has been a special challenge for refineries in California with the state's requirements for fuels refor- mulation as well as environmental restrictions. In our energy future, refineries that survive will be those that control costs, produce eft~ cient yields, and utilize innovative ways of do- ing business. As a Shell Oil Products Company opera- tion, we plan to be among that group. We will continue to meet those special chal- lenges and operate as a major energy facil- ity in California and in Kern County. iSoon...A Shell Oil_Products Company Since 1998, Bakersfield Refining Company has been a Shell-Texaco operation under the banner of Equilon Enterprises LLC. Soon all that will change. As part of its recent merger with Chevron, Texaco had to divest its interest in the Equilon Alliance. As a result, Shell Oil Company purchased that interest for an estimated $2.1 billion in cash plus about $1.7 billion in debt and pension obligations. According to Paul Skinner, CEO of Shell Oil Products, the new organization will generate expected synergies and cost reductions to produce savings of approximately 400 million annually by 2004. Equilon Enterprises had focused its operation on the western United States, has business units totalling approxi- mately 4,500 Shell service stations and 4,500 Texaco service stations, four refineries, a lubrications business, as well as pipeline and terminal operations. 1 Three of the four refineries are in Califor- nia. One is in Los Ange- les, a second at Martinez in Northern California, and the Bakersfield plant. The fourth refinery is in Anacortes, Washing- ton. The four refineries process over 450,000 barrels of crude oil per day. The Bakersfield Refinery employs approximately 200 employees and processes about 70,000 barrels of crude oil per day into a variety of consumer products, primarily gasoline and diesel. Todd Guerard, oil movements operator, gets blood pressure check. Got Your Health?... On October 10, refinery employees, contractors and family members participated in BRC's 2001 Health Fair. Agencies like the American Red Cross, American Lung Association, California Highway Patrol, Southwest Eyecare, Kern Mosquito and Vector Control among other agencies participated. Attendees could get their blood sugar, blood pres- sure and cholesterol checked, get a mini massage, find other services and information during the annual event. The refinery Wellness Team headed by B. J. Weidinger, plant nurse, coordinated the fair. Caring Family... The caring nature of Bakersfield Refining Company employees was evident on September 8, when a group of generous volunteers participated in the Kern County United Way "Day of Caring" About 25 employees and family members helped the Buttonwillow Pioneer Seniors clean the area around their center. Participating in the project were Mary Kroeker, Renee Chance, Art Williams, Ken Comey, Sandy Blanquette, Tracy Markham, Barbie MacDonald, Mike Roberson, JoLene Roberson, Bob O'Brien and son, Mikki, Mark Hernandez and his son, Andrew, Augie Prieto, Janet Shreading, Hank Alviredes, Red Baker, Julie Giuntoli, Mike and Barbara Nickell, Walt Fluharty, Gale Mitchell, Kathleen Young, Elizabeth Luckhardt, and Alan Spencer. One senior was so impressed with their efforts, he said the Equilon employees worked "like they were geffring paid.' Janice Vontz, Program Director for Pioneer Senior Citizens, noted that the employees were great sports despite being stung by wasps, getting extra jobs added to their list, and having to fight jungle weeds to get to the trees they were scheduled to trim. Contractor Milestone ..... On November 9, contractors who work at the B~ikersfield Refinery Company achieved a major miles'fOr~e. By that date, they surpassed the Million-Mo Hour mark without a lost time injury. The Million Man hours covered a two-year, eighth month period:Over 340 audits of contractor activity in 2001 confirmed that safe working accomplishment. At a special luncheon, Lynn Bourgeois, Site Man- ager for the Bakersfield Refinery, congratulated the contractors, emphasizir~g that safety is number one with management. "Equilon fully supports this kind of performance not only by our contractors but by all of our employees as well," noted Bourgeois. "In fact, we challenge workers at our facility to continue to make this plant a safe place to work" According to Bourgeois, the next level for the contractors is to achieve a comparable record with no OSHA Recordables. "All of the employees and contractors work hard to reach the daily production levels we have achieved, At the end of the day, we are determined to live up to our objective that everyone Go Home Safely," he concluded. Chuck Flagg Recognizing Excellence More than 20 individual and team members at the Bakersfield Refining Company received performance hon- ors recently at a Bay Valley Complex Excellence Awards cer- emony. The Bay Valley Complex, which includes the Bakers- field Refinery and the Martinez Refinery located in Northern California, are part of Equilon Enterprises LLC. A selection committee of peers nominated the honor- ees throughout a cross-section of categories including work process efficiency, increased effort, cost reduction, and im- provements in performance measurability. "We are pleased to recognize the outstanding perfor- mance of our employees who really make daily production activity both successful and safe," noted Chuck Flagg, Man- ager for the Bay Valley Complex. The selection commiltee especially noted employee in- volvement during the recent Inspection and Testing of plant operations. For over 60 days, employees and contractors thoroughly checked refinery operations for both safety and operational efficiency. { Refinery Products Meet... For over 60 years, the Bakersfield Plant has been an integral part of the energy landscape ~n Kern County. In 1932, It was a small facility process- ing about 1500 barrels of crude oil per day. Today, it is the largest county refinery, turning the input of approximately 70,000 barrels of crude oil per day into a growing number of energy products for California and the nation. The Bakersfield Refining Company currently produces four grades of gasoline including un- leaded regular, unleaded intermediate, unleaded premium and an MtBE-free unleaded premium. It also refines diesel fuel, raw gas oil, desulfurized gas oil, LPG (Liquefied Petroleum Gas), butane, fuel oil, asphalt, coke, sulfur, and ammonia. Within this range of products fuels constitute the largest volume of the oil processed as gasoline and diesel. Motor gasoline is the major product, using over 36 percent of the refinery's daily pro- cessing of crude oil. Most of the gasoline is sold in California as a reformulated product meeting the state's environmental requirements. The refinery is on schedule in its compliance with the California requirement to phase out all use of MtBE in gasoline production. Diesel, the second largest product produced, Jsing about 21 percent of the daily crude input, is a basic fuel that busses, boats, farm equipment, train engines, cars, and trucks use commercially. The refinery also produces coke, which is a Team of professionals in facility laboratory maintain and improve the quality of products processed at the Bakersfield Refining Company. solid carbon substance resembling coal, that is used as a fuel for utilities and industry. Large ships use the fuel oils as a bunker fuel. Utility and industrial boilers are also a market for thick heavy liquid fuels. ...Wide Range of Energy Needs As a bellied gas, LPG becomes the product of choice for many recreafional vehicles, farm equip- ment, and for stoves, water heaters and furnaces. Sulfur, also a product from crude oil, is part of the manufacturing process for fertilizers and acids. Throughout California and the rest of the nation, business and residential energy users have vital needs for a variety of products from refined crude oil. The mission of the Bakersfield Refining Company is to provide quality refining that creates the prod- ucts that meet those needs. Mild hydrocracker, one of many processing units producing diesel and other consumer products. Community Update Summer/Fall 2001 Recognition... Chuck F/agg, Manager of the Bay Valley Complex, which includes the Bakersfield plant, congratulates maintenance employees on achieving six years without a lost time injury and three years without an OSHA recordable. ... and an Update Lynn Bourgeois, Site Manager, briefs employees on refinery activity during 2001. Highlights included the success of the recently completed Inspection and Testing of plant operations. Refinery continues to process approximately 70,000 barrels of crude oil per day into a variety of consumer products. sa!~!-~°!-~d IIV luatuuo.qau~ ',i~ajeS o ~g/# ~.!bU J ed eSo4sod Sfl GIS-I?JS~Jd i50,0-06 va 'Ple!~sJe>ID{] 9ZIz [ xofl 'O'd Auodudoo 6u!u!,te?.l Ple!,tsJe>lD{] UOl!nbq daqg,.gBo1 ~}u!'~do/v~ ooexal ~ IlaL,IS 099 83SIWdW31N3 t ] punH q:l I l ':ldas ol uoDeuocI uoI!nb3 ° : IQISNI ~ENTER PRISES LLC Shell & Texaco Working Together Summer/Fall 2001 Equilon Bakersfield Refining Company Community Update SITE MANAGER'S Lynn Bourgeois Included in this issue of Community Update are several items related to safety, health, and the environment. We recently congratulated our refinery maintenance department on six years without a lost time accident and three years without an OSHA recordable. This is a major achievement for any employee group in a refinery environment. Our Equilon Bakersfield Team is also proud to have received the SH&E (Safety, Health and Environment) Excellence Award from Texaco, Inc. for the year 2000. This award honors our facility and its employees for programs that lead to excellence in safe performance including safety cultures assessment, employee involvement in updating safety proce- dures, and participation on safety teams. What makes this award particularly gratifying for us that we are the only Equilon Enterprises LLC facility to receive that award for the year 2000. You will also find a feature article highlighting many of our programs related to safety, health, and the environment both within our facility and those affecting our neighbors in the Central Valley. EBRC and its employees are committed to clean air and water as well as a sensitivity to noise and odor concerns. Critical to that commitment are the actions and attitudes of our employees. They know full well the importance of these responsibilities and programs for themselves, their co-workers, and for the surrounding community. Plant Gets Unique Safety Award... In recognition on ifs outstanding safety record, the Equilon-Bakersfield Refinery (EBRC) received the Texaco, Inc. SH&E Excellence Award for 2000. EBRC was the only Equilon Alliance facility recognized by Texaco which shares the alliance arrangement with Shell Oil. The award celebrates several performance measures in safety, health, and environmental requirements. "We are extremely pleased that Texaco has recognized our refinery operations and the employees who are respon- sible for our record,' noted Lynn G. Bourgeois, Site Manager. By giving the award, Texaco recognized EBRC pro- grams in safety culture assessment, employee involvement Oupdating procedures, the Bakersfield-Equilon-Advance- ent-Toward-Safety Teams (BEATS), and the Safety-Union- Management Team (SUMIT). Singled out for special attention were Safety Perfor- mance Indicators (SPI) which were noted as "Best Practice". SPI measure proactive efforts that EBRC implemented to prevent injury and to remain compliant with all safety practices. According to Glenn F. Tilton, Chairman of Texaco, Inc. EBRC won the award because.the refinery both estab- lished and implemented safety performance indicators and experienced a steady decline in reportable incident rates. Equilon Enterprises LLC donated $500,000 to the September ! ! th Fund which was established in response to the terrorist attacks which occurred in New York and Washington. Because admin- istrafive costs are being handled by United Way and the New York Community Trust, all funds collected go directly to meet the needs of the victims. _Teachers and Refining Annette Bills, Process Support and Quality Assur- ance Supervisor, was a featured speaker at the Petroleum Seminar for Teachers held August 7-9. She provided an overview of refining processes at the local Equilon facility. Teachers from the Central Valley had an opportu- nity to learn from local industry experts and visit several petroleum operations. This gave them a unique view of an industry vitally important to the economic health of this part of California. Bills has worked at the Bakersfield Plant since 1989. Currently, she is responsible for Process Engineering as well as the laboratory which ensures the quality of crude oil products before they hit the marketplace. The seminar was co-sponsored by the Western States Petroleum Association (WSPA) and the San Joaquin Valley Chapter of the American Petroleum Institute (APl) [ ......... Eq i 0n Hosts United Way Demonstrating again its commitment to commu- nity service, the Equilon-Bakersfield Refining Company sponsored the annual United Way Celebration Break- fast for Kern County in July. The event finalized United Way's recent cam- paign by celebrating money-raising goal achieve- ments which can only be accomplished in conjunc- tion with partners like Equilon. Alan Spencer (center) Public Affairs Coordinator, presents a check to Rich Merlo and Benny Jackson, representing the Selma, Califor- nia All Weather Track Project. Equilon Enterprises LLC contrib- uted $2,000 as part of its civic involvement initiatives for the Central Valley. Annette Bills Regulators Tour Refinery On August 8, The Equilon-Bakersfield Refining Company hosted a plant tour for regulators involved in monitoring air quality for the Central Valley. At the request of the California Air Resources Board (CARB), EBRC provided an overview of refinery operations for approximately 30 regulators. "CARB sponsors a week-long series of training classes about specific industries. One of the classes is in petroleum refining. To demonstrate the real world of downstream operations, the training includes a half-day field trip to a refinery,' noted Greg Cervantes, Production Leader for Ensure Safe Produc- tion (ESP) work process. EBRC hosted a similar tour two years ago. At that time, about 35 regulators went through the plant to learn the latest on refining. "We were pleased to again host local and state regulators as they either learned the basics of refining or expanded their knowledge of the industry,' said Ken Comey, Supervisor, Safety, Health and Environ- ment at EBRC. Employees on a "Mission" Refinery employees, family members, and contractors have been serving dinner at the Bakersfield Rescue Mission since December, 1999. Each month, Equilon donates a special meal and EBRC representatives serve over 250 Rescue Mission guests. The number of volun- teers has ranged from 8 to over 30 according to B.J. Weidinger, plant nurse, who organized the monthly serving night. She has also been serving lunch at the Mission almost every Friday for more than two years. EBRC recently donated $1,500 to the Res- cue Mission in a match for volunteer hours. The money will be used for kitchen items such as pots and pans, silverware, and serving trays. SH&E... a Priority As a major energy facility in the Central Valley, EBRC maintains key activities to ensure the health and safety of employees and contractors, protect the environment, and minimize impacts on nearby businesses and residences. Refinery safety, health, and environmental specialists constantly monitor the workplace. Employees regularly inspect facilities and suggest improvements, included are training workshops, safety and environmental studies, drills, seminars, firefighting workshops and first-aid instruction. There are also strict requirements for the wearing and proper use of protective equipment. ...On site and off site... A major part of the refinery's safety program is a comprehensive industrial hygiene program. Professional hygienists provide guidance in the handling of products and .substances used in local manufacturing. This staff monitors health surveillance to gather, evaluate, and store health data on each employee. Should there be a worker injury or illness, a modern medical facility located at EBRC is staffed by a plant nurse who helps employees with medical problems and questions. EBRC also has trained firefighters who work L Paula Adams, Environmental Technician, uses state.of-the-art equipme(tt to measure emission levels from heaters, boilers, and other plant equip- ment. Refinery has a solid record of complying with state and federal emission limitation requirements. closely with local community firefighting organiza- tions. EBRC is equally commi~ed to related air, water and odor issues within the environment. Instrumenta- tion accurately measures emission levels from heaters, boilers, fuel gas supply sources and sulfur recovery units. Communications links route emission data directly to control room operators for continuous monitoring. Through pollution control technology, wastewater treatment facilities, health and safety practices, the company has repeatedly demonstrated that it will meet or exceed state as well as national environmental standards. To facilitate that effort, BRC maintains good working relationships with the regula- tory agencies monitoring Central California's natural resources. Refinery environmental staff regularly meet with these agencies to ensure that the facility complies with all laws protecting the air, water, and land. Barbie MacDonald, Safety Inspector, checks out firefighting equipment at the refinery. Safety, health and environmental staff work closely with their counterparts and regulators in local area. Spring 2001 Community Update Joint effort for cleaner air Van will provide APCD with greater flexibility to monitor air emissions. In a mutual initiative between the San Joaquin Valley Unified Air Pollution Control District (APCD) and Bakersfield Refining Company (BRC), the refinery has donated a mobile station to facilitate district emission monitoring capabili- ties. The mobile station is a Ford Econoline Cutaway vehicle with state-of-the-art monitoring gear. Included in the California emission system are several analyzers, generators, a four-channel chart recorder, sample pumps, an air condi- tioning generator, a gas conditioning system, gas manifold equipment, a voltage converter, and multiple storage areas. To deal with odor issues near the refinery in the 1990s, Texaco Refining and Marketing Company installed two ground-level monitoring sta- tions. With changing data gather- ing requirements, the information from the ground-level stations became less useful. In their place, and as part of an agreement with the APCD, the refinery is providing the district-approved mobile station. "The mobile van, outfitted with the latest monitoring equipment, will be more efficient and provide the APCD with greater flexibility in keeping track of air emissions throughout the county," noted Lynn Bourgeois, site manager for Bakers- field Refining Company. INSIDE: Refinery completes major "I&T" project iENTERPRISES LLC Shell ~, Texaco Working Together !Bakersfield Refining Company P,O, Box 1476 Bakersfield, CA 93302 PRSRT-STD US Postage PAID Bakersfield CA Permit #1 10 "Fueling For The Fight" team helps battle Cancer F---~ ENTERPRISES LLC Shall ~, Taxaco Working Togather Spring 2001 f-i~a~ersfield Refining Company Community Update SITE MANAGER'S Lynn Bourgeois This June, the Bakersfield Refining Company will complete one of the most comprehensive inspections of its facilities a plant can undertake. We call it an I &T which is an acronym for "Inspection and Testing". Why do we do this? First and foremost, we have a major objective to ensure that we manage a safe and environmentally compliant operation. Secondly, our mission is to operate a facility in the most efficient way to provide vitally needed petroleum prod- ucts for our customers. To achieve that goal, we process approximately 70,000 barrels of crude per day. We will continue to meet our goals with the professi'onalism of 200 plus employees who provide vital expertise and experience. During the I & T, they have been working with a large number of top-level technical consultants checking our plant from top to bottom for both efficiency and safety. The Bakersfield Plant has been in operation since 1932. Over the years, it has grown in terms of daily production, advanced in the use of state-of-art equipment, and expanded through plant integrations and company mergers. Throughout those years, the facility has played an integral role in the oil industry of Kern County and California. Successful completion of the I & T is a key indicator that the plant will continue to be major contributor to our energy future. BRC in Good Standing... The Bakersfield Refining Company (BRC) is in good standing and in compli- ance with all permits according to the San Joaquin Valley Air Pollution Control District. That was the response of the key Central Valley agency to a recent settlement on clean air standards by the refinery's parent company, Equilon Enterprises LLC, with regulators including the Environmental Protection Agency (EPA). Because BRC has already com- pleted numerous measures being required by the EPA, it has no plans for upgrades in pollution control equipment ] regarding sulfur dioxide emissions, it has already adhered to prior California and Central Valley regulations. BRC is also implementing measures that meet local air control district require- ments that reduce nitrogen oxide emis- sions. The refinery plans no major upgrades in pollution control measures targeted for additional reduction in volatile com- pounds. Again, the BRC already meets EPA requirements by past compliance with local air district requirements. Equilon Enterprises LLC is a joint venture between Shell Oil Company and Texaco, Inc. _More than routine... Some refineries call it a Turnaround, others a Shut-down. For Bakersfield Refining Company it is officially called an I & T or an Inspection and Testing of its operations. Periodically, a refinery goes beyond routine maintenance and initiates major inspection and testing of its production facilities to ensure both efficient and safe operation, In June, the Bakersfield Refining Company will complete an $18 million I &T. The effort, which began in April, has involved over 500 technicians and contractors working with refinery professionals to inspect and test equipment used in the production of gasoline, diesel fuel, raw gas oil, desulfurized gas oil, LPG, butane, fuel oil, asphalt, coke, sulfur, and ammonia. '~he I & T includes inspection of equipment including the crude and vacuum unit, mild hydrocracker unit, delayed coker unit, hydrogen generation unit, catalytic reformer, sulfur recovery units and more. Bakersfield Refining Company processes approximately 70,000 barrels of crude oil per day into product. To maintain targeted levels of output, the I&Tis a phased process during which technicians com- plete maintenance in specific areas of the refinery while production continues in others. The original refinery was built in 1932, Regular expansion and improve- ments of facilities have been made over the years including integration of the former Tosco Refinery in Major equipment inspected 1986 which doubled gasoline production. In 1988, the refinery acquired the Independent Valley Energy Company which added a delayed coker and a sulfur recovery unit to the Bakersfield plant. In 1998, the plant became part of the Shell/ Texaco Refining and Marketing alliance which created Equilon Enterprises LLC, Pipeline brings fresh water In March, the refinery finished construction of a $1.3 million, 1.5 mile-long pipeline to meet the fresh water needs of the refinery and several of its neighbors. According to Lynn Bourgeois, site manager, the pipeline was completed about 60 days after the start of construction. Although funded by Equilon Enterprises LLC, the refinery's parent company, the pipeline is now owned by the California Water Services Company. The pipeline begins at California Water Services Company facilities at Fruitvale and Meany, extends beneath Rosedale Highway, and continues along Fruitvale and Charity Avenues. Water carried in the pipeline is replacing that taken from wells that were used by nearby businesses. West of the refinery, groundwater containing a plume of hydrocarbons with MtBE is in the process of being remediated with any contaminants being confined. In any event, and as part of the remedial effort, the pipeline will ensure the safe supply of water to businesses located near the western boundaries of the refinery. Refinery staff and environmental consultants are working to contain the plume and continue hydrocar- bon removal to clean the soil and groundwater. There is no danger of contaminants to the Bakersfield water supply of any MtBE or hydrocarbons emanating from the refinery, In addition to the pipeline and efforts to contain the MtBE plume, the refinery is phasing out the use of MtBE in compliance with California policy. The facility is con- structing a process unit to help meet specifications for California gasolines in the absence of MtBE which has been added to gasolines since the early 1990s to help lessen air pollution. BRC is currently producing an MtBE- free premium gasoline. BRC Team funds cancer fight Many employees at Bakersfield Refining Com- pany (BRC) make significant donations of time and financial support to the local community. That service attitude was evident again recently when the BRC team "Fueling for the Fight" helped raise over $15,000 toward the goal for the American Cancer Society's eighth annual Relay for Life. The relay is a team event which celebrates surviving cancer survivors and helps fund cancer research. With over $700,000 in contributions this year, the Relay for Life is the largest fund-raising event in Kern Fueling for the Fight Team raised $15,000 Pete Hambaroff, top indi- vidual, raising $5,400 County. "Fueling for the Fight"team members included Team Captain, Pete Hambaroff, Sandy Blanquette, Corissa Gutierrez, Barbie MacDonald, Cindy Bernard, Marvin and Lynda Barulich, Lori Blan, Renee Chance, Jo Enderle, Rick Ellis, B.J. Weidinger and Steve Weidinger, Celia Thompson, Chuck and Sherrie Alcorn, Dr. Carl Bollin, Mike Finch, and Kristin Hambaroff. BRC's team was among the top ten fund-raising teams, Raising $5,400, Pete Hambaroff was number one on the list of top ten individual money raisers. In addition to employee participation, Equilon Enterprises contributed $5,000 as a Platinum sponsor of the event. BRC's participation began about three years ago when Hambaroff became interested and recruited other employees who shared his enthusi- asm. The 2001 Relay for Life took place at California hate University-Bakersfield April 28th and 29th. More an 2,400 people participated including about 800 cancer survivors who walked the first lap. The event spans 24- hours when a team member must be on Chuck and Sherrie Akorn. Renee Chance and Rick Ellis the track at all times. Among the activities was the lighting of over 15,000 luminary candles to celebrate a person who has survived cancer or a loved one who has passed away as a result of cancer. The American Cancer Society's goal for the 2002 Relay for Life goal is $1,000,000. There is a good chance that Bakersfield Refining Company employees will be helping to reach that milestone. Alan Spencer, Public Affairs Coordinator for BRC, presents Beautiful Bakersfield Historical award to Doris Weddell. Dust Bowl Historian. Workbook The Short Course in Petroleum Refining .In Nontechnical Language at Shell Oil Company Bakersfield and Martinez Refineries August 20-22, 2002 Dr. Bill Leffler Venus Consulting Houston, Texas Leffier@hal-pc.org Agenda for the Short Course in Petroleum Refining in Nontechnical Language Session I The nature of crude oil - where it comes from and how it behaves; Distilling - the front door of the refinery; Vacuum flashing - squeezing the lemon without breaking the eggs chemistry - as a as possible; Session 2 Petroleum small dose Cat cracking - the gorilla unit; Gas plants - sorting out the cats and dogs; Alkylation - a machine to undo the overdone Session 3 Cat reforming - a molecular fandango amidst platinum elegance; Residue reduction - a refinery laxative; Asphalt and residual fuel - back door sales,- Hydrocracking - an engineering response to a political issue; Hydrogen, Hydrotreating, and Sulfur - somebody's got to do it Session 4 Gasoline Blending - everybody wants to get into the act; internal combustion engines; octane - a refinery knock- knock joke; vapor pressure - I'll take the Iow road; the Surgeon General gets the lead out; EPA: you know what makes me sick? leaving it up to the computers; better gasoline through chemistry ... and bootlegging; distillates- warm houses and noisy cars Session 5 Wrapping it up - why would anybody want to own a refinery - the economics of refining References for this course · Petroleum Refining in Nontechnical Language II · The Petroleum Refining Wallchart a · Petrochemicals in Nontechnical Language ~ ~ · The Petrochemicals Wallchart Available from PennWell Publishing at www. pennwell-store.com or 800 - 752-9764 I ! I I I I I I I I I I [ ! t i 'I I I I I 1 I I I Crude Oil, Condensate, and Natural Gas Production Oil Patch Stuff (Ct) Crude Oil Condensate Natural Gasoline Natural Gas Liquids EP Mix Raw Make or Mix LPG LNG X CNG X Natural Gas X (c2) (C~) (c4) X X X X X X X X X X X X X X I (Cs-CtO X X X X X H~ I in,:iirls (C.+) X X 4 3 Boiling Water CRUD~ OIL BOILS AT 1S0*F... AND 4S0('F... ANO 7S0°F... ' AND ~Q0eF... Boiling Oil ] I, I I I I I ! I I I I I I I i I 1 [ Kerosene Fraction in Two Different Crudes ] 10 Distillation Curves for Five Crudes Exercise 12 Calculate how much kerosene thero is in West Texas Sour and in Alaska North Slope crude. Use the follwing: IBP 315°F EP 450°F The distillation curves in the workbook 11 APl The Lower the APl Gravity_, the Heavier the Oil ! I I I I I I I I ! Exercise Is Sherlock home? t3 Willie Blowwit, the crack lab technician at Pasadena Testing, accidently mixed a half beaker of asphalt (marked API gravity: 11°) with a half beaker of naphtha (marked API gravity: 50°). Since he had been testing the samples for gravity, he labelled the resulting mixture as 30.5° APL How did his supervisor, Noah Kenphulmi, know to fire him for covering up a mi~s~ake? Answer: ~& 4~(~-~,,~ ~¢G~//~) -> ~ 5 ~ 1 I i i I I i CRUDE OIL BUTN~IE AND UGHTER HEAVY GAS OIL STRAIGHT RUN RESIDUE Distilling Crude Oil I 14 15 J Making Moonshine VAPOR VAPOR 16 O O Two Stage Still I I I i I I I i I I I ! I, I I i i I I I' Crude Oil Feed to Distilling Crude Oil Entering the Distilling Column 17 18 19 TRAY O O0 0o 4)0 0o o°~ vN:q~ Bubble Cap on a Distilling Column Tray VAPORS O 2O I Downcomers and Sidedmws I I I i ! i 1 I ! I Reboil and Reflux 21 i A Packed Column coolerI ~- -~ · packing inlet 227 220'~-315· 315°.-450* CAT REFOFIMINO 'LSO°~EO' LJ{~IT GA~ (3iL ~ FUEL BLENO~NG HEAVY ~ C~. ~ CAT CI~e*CKIN(3 Disposition of Distilling Unit Cuts 1OOO 23 I Crude Oil Distillation Curve and the Fractions I ! I i I i I' i i i I I I H I H-C-# H-C-H H-C--H H--C-H H--C:-- H H-C--H H--C--II H-C-H H--C-N H--C--H H-C-II H.C--H H--C--H H--C--H H-C-H H +heel ~ H I H-C--H H I I H--C--H H--C--H I I H--C--H H--C--H I I HH H-C--H H--C--H I + I + CC= H-C-H H--C-H II I I HH H--C--H I II EM H--C--H H--C H-C--H H ! (~ Oc~le Cracking Molecules C~6H=4 and its (Expanded) Cracked Components Weigh the Same 25 Vacuum Flasher H I H--C--H ! H 26 27 I I I I I I i t I i ! I I ! I 28 H H ! I H--C--C--H I I H H Ethane 29 H H H I I I H-C-C-C-H I I I H H H Pr~e H H H H I I I I H-C-C--C-C-H I I I I H H H H Non/tat Butane (C~H~o) H H H H H I I I I H-C-C-C-C-C--H I ! I I I H H H H H (C_,~HI~) H H H I I I H--C--C--C--H H-C-H I H (C~I~,) H H H H I I I I H-C--C-C-C --H I I ! H H~ H H--C--H ! H (C~i~) Isomers H H (C~I~) I Naphthenes 31 I t ! I I I i I I I i I H H /C _C H' _the m~ radical H~ '~H H/ Methyl Cyclopentane CsHgCH3 32 H H I C=C ! I H H (C~H4 H I H-C--C:C---H I I I H H H H H I I H-C-C-C=C-H I I I I H H H H Olefins 33 H I H..c ~ C ~ C" H I II H/' C ~C jC~'H I H H I I H--C-H I H Toluene I C~HsCH3 H I H--C--H I C C..H .~ ~C~ I H-C-H I H Xylene / C6H4(CH3)2{ Aromatics: the BTX's Refinery Flows with a Cat Cracker 39 I I I, t I I I I I I I I I I !' I I ! I Cat Cracker Reaction Section Catalyst regenerator Cat Cracker Fractionator Cai Cracker (a.k.a. fluid cat cracker, steam cracker, riser cracker) II ~"' I 1 I ! I I I I I I 1 I How well did you listen? Fill in the blanks: The purpose of a cat cracker is to conved to There are two circulation flows in a fluid cat cracker. On the one side is , on the other is Spent catalyst has deposited on it. The regeneration process removes it byreactJng it with to form ~ and · C~ cracker feed usally comes from the and the The cat cracker fraclJonator bottoms, called __ , are usually by reinjecting them in the feed. Name six ways to increase the volume of cat light gas oil Sats Gas Plant 41 Gas Plant Compression and Separation Gas Separation by Absorption FAT OIL 42 I I '1 t I I I I !, ! I I I I I I Gas Separation by Spong.e~ Absorption L_ H (C~'4,o) H 14 H--C--H I H ! H H--C--H I [ I C--H ~ H--C--H H H--C--H H--C H Propylene and Butylene Alkylation N..KYt. ATE I Alky Plant Refinery Flows with an Alky Plant 47 +~ Cat Reformer Reactions 49 Cat Reformer I Cat Reformer Yields versus Octane Number I 50 Cat Reformer with Continuous Regeneration Fresh Catalyst s~m ~t Separation Section ] Hz C4s and Itt R~ormat® I I I ! I i I I I I I I I I I ! I I I I I I ! I Exercise Cat reformers are designed to convert · ~r~.t;~ to ,~o- ~£'~ and Use the reformer chart on the page before last. The reformer is producing 94 octane rcformate which has a value of 60 cents per gallon (cpg). If the value changes 1 cpg for every octane number, and the value of by-product gases is 40 cpp~ should the operating conditions on ~e reformer be set to increase or decrease octane number .9 I Refinery Flows with a Cat ReformerI 81 52 'Test your retention and brain power: Name six ways to change gasoline volume in this (so far) refinery SR RESlOUE C~C~a -Thermal Cracker I 1, I I rI I t I I I ! I I i i 1 I I I I I 1 I ! I I i I I I I I I '1 I 55 IREFINERY FLOWS WITH A THERMAL CRACKER ADDED ! I i I COKER 56 Hi FIECY~,L~ 57 HEATE~ ~TA~E IqEA~TOR LT. HYDRO*' HVY. KEI:~C~SENE__ -- ~"rAQE REAt3TOR ITwo Stage Hydrocracker 58 REFINERY FLOWS WITH A HYDROCRACKER ADDED I I I I 1 I I I t t I Four cycle Jntemal combustion engine [ 59 6O Compression ratio: Vi:V2 Gasoline Blending Component Characteristics RVP RON MON (R+M)I2 NC4 52 93 92 92.5 Reformate 3 100 88 94.0 Hydrocrackate 3 76 75 75.5 Alkylate 5 97 96 96.5 SR Gasoline 11 66 62 64.0 SR Naphtha I 62 59 60.5 CC Gasoline 4 92 77 84.5 Coker Gasoline 4 85 76 80.5 61 62 I I I I I I I I I I I I I I I I I Effect of lead in gasoline 63 Gasoline from Chemicals Methanol Ethanol MTBE ETBE TAME, THxME, THpME, THxEE, THpEE TBA Gasoline Blending Component Characteristics RVP RON MON (R+M)/2 NC4 ~2 9~ 92 922 Reformate 3 100 88 94.0 Hydrocrackate 3 76 7~ 7~2 Alkylate 5 97 96 96.5 SR Gasoline 11 66 62 64 SR Naphtha I 62 59 602 CC Gasoline 4 92 77 842 Coker Gasoline 4 85 76 802 Methanol 40 135 10~ 120.0 Ethanol 11 132 106 119.0 MTBE 9 118 101 109~ Blend up some gesoline You have the following gasoline blending components in your tanks:. Octane RVP · 3000 bbls ot: straight run gasoline 70 20 · 2000 bbls of cat cracked gasoline 80 8 · 3000 bbls of reformat¢ 90 8 · 2000 bbls of taker gasoline 80 6 How much 100 octane olkylate do you need to add to make a blend of 90 octane gasoline? How much butane (513 RVP) do you have to add to the finished blend to get the vapor pressure to 9? (Alkylate has an RVP of 5.) What happens when you do? 65 I I I I I I I I ,i iii I I I ! I I MTBE Plant: 66 iso-butylene + methanol = methyl tertiary butyl ether METHANOL GXI'RACTIOfl COLUMN ' IMTBEI C.IC8 Isomerization Plant EOMERATE~ MAKE UP H~ + ch~ide Butane Isomerization Plant BTX Recovery I I I I I i I I I I ! I I I I I I I I I I I Solvent Extraction Process ] Blending Gasoline 6t,~o]ine T~o and T~ Mox. RVP Oxygen, Benzene, Olefin Aromotics, & Sulfur Coment 67 Performonce Gasoline additives I Detergents to control vamish, carbon deposits -- Antioxidants to cat, b-al gum formation during storage Corrosion inhibiter antistatic additives to reduce explosions Copper/zinc deactivators Diesel Additives organic nitrates for cetane improvement, pour point depressant v~scosity improvers to reduce wear, biocides to reduce slime polymeric additives b~at modify the wax build-up for flow improvement · antoxJdants to reduce varnish, copper deactivators dispersants to reduce asphaitene deposition, antistatic additives to reduce explosions ! ! Usual components: $~L~O, CCLGO, TCL~O, COI(E~ LGO (and maybe Kerosene) I Important properties Cetane number 40 or 45 or 50 Sulfur cOntent, Pour point, Cloud point, I Stability, Tso° for carbon residue, Gravity and Isa° i ! I' I I I I I ! ,! ! '! I I I I I I I I I FAT Diethanolamine treater for removal of H2S HFS Conversion to Liquid Sulfur DIESEL ENGINE (Two-c~'cle) AIR IN~-r HEATER I Hydrotreater I HYDROG~ RECYC~ REACTOR ~1~. SEPARAT~ HYDROTFEATED ImODUCT 69 72 I I I I I I I I I I I I I I I I I I I I Hydrotreater Applications WHAT · Remove sulfur -Hydrogenate olefins or diolefins -Hydrogenate aromatics to naphthenes · Nitrogen removal · Metals removal WHERE · Cat crocker feed prep · Cat reformer feed prep · Make marketable fuels · Reduce the vis of heavy fuel oil components s+H; ' Benzo- thiophene SORBENT H2 Eth~ Benzene World Refining Ma~azine- 3/02: "Conoco licenses (Phillips) S Zorb SulfIIF Removal Technology for US, UK Refineries" **. Sorbent ·, Receive Reactor FRESH SORBENT DESULFURIZED PRODUCT SPENT ~ORBENT Regenerator Reducer C4' SR Geso ~-~ SR Naph C,* ~ HL~'--~ Jet Fuel . Ref'y fuel Gas H c, ; LPG plant U .c, R. fuel .C, LPG Gasoline DisUIlate Fuel CC Gaso CCLGO Dist CCHGO C2' Pitch SR Residue Asphalt -- Resid RESID. D GASO. DIST. ~ RESID. GASO. COKE ! I I I I I I I I I I I I I I I Gasoline Jet Fuel Distillate Fuel Residual Fuel LPG Col~ Refinery Fuel Gain Simple 10 20 35 8 Pereent Relinery Yields from Medium Crude Complex 10 10 3 12 (1o) Very Complex 10 25 4 3 13 (15) Refining $15 Medium Crude Simple Refine~/ % Vol ~B SiB Gasoline 30 22 6.60 Jet Fuel 10 18 1.80 DisUIlate Fuel 20 17 3.40 Residual Fuel 35 11 3.85 Refinery fuel 8 - - (Gain) (3) - --- Comolex Refinery 50 22 11.00 10 18 1.80 25 17 4.25 10 11 1.10 12 - - (6) - - Total Revenue 15.65 18.15 Medium Crude Cost Operatfng Cost 15.00 1.00 15.00 2.50 Refining Margin (0.35) 0.65 Refining $12 Heavy Crude Simple Refinery % VoL S/B Gasoline 10 22 Jet Fuel $ 18 Distillate Fuel 17 17 Residual Fuel 63 11 Refinery Fuel 10 -- ((;alu) (S) - Complex Retrmery ~B % Vol. S/B $/B 2.20 50. 22 11.00 0.90 S 18 0.90 2.89 30 17 5.10 6.93 10 11 1.10 - (10) - - Total Outturu]Rev. 100 Heavy Crude Cost Operating Co,ts 100 Refining Margin 9.84 100 18.10 12 12.00 100 12 12.00 I 1.00 100 2.50 2.50 (3.16) 3.60 Crudes Louishml Sweet Nigerian Li~t U.S. Gnif Coast Refining Marghls Crude Price , Rt~min* Marai~q 18.00 0,10 0.3O 18.~0 (0.20) 0.10 Medium Crudes West Tens Sear 17.00 (0.35) 0.6S Arab l,i~t 17.~0 (0.gb') 0.45 Isthmus (Me,co) 17.2S (0.S0) 0.40 Hem~ Crudes Ma~n 12.00 (3.16) 3.6O Arab Heavy 12~0 (3.33) 3.40 Vm 12.25 (3.49) 3.20 0.35 O.4O 1..52 1.10 1.20 4.6O 4.0O 4.25 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Refining 312 Heavy Crude Simple Refinery % VoL $/B Gasoline 10 22 Jet Fuel 5 18 Distillate Fuel 17 17 Residual Fuel 63 11 Rehery Fuel 10 -- (Gain) (s) - Complex Refinery S~B % VoL $/B 2.20 $0 22 11.00 0.90 J 18 0.90 2.89 30 17 5.10 6.93 10 il 1.10 - 15 - - O0) - - Total Outturn/Rev. 100 Heavy Crude Cost 100 Operating Costs 100 Ref'ming Margin 9.84 100 18.10 12 12.00 100 12 12.00 I 1.00 100 2.50 2.50 (3.16) 3.60 I.i~ht Crudea Louisiana Sweet Nigerian Light U.S. Gulf Coast Refining Margins Crade Price Refinin~ Mav~in~ 18.00 0.10 0.30 18.~0 (O.20) 0.1o Medium Crudes West Texas $oor 17.00 (0.35) 0.6~ Arab L~ht 17.~0 (0~$') 0.45 Isthmus(Mexico) 17.25 (0.~0) 0.40 Heavy Cmd~ Arab Heavy 12.50 (3.33) 3.40 Vmezuelan 12.25 (3.49) 3.20 0.35 0.40 1.52 1.10 1.20 4.6O tOO 4.25 Simple Complex Very Complex Refinery Revenues 15.65 18.15 19.52 Less: Operating Cost 1.00 2.50 3.00 Transportation 0.30 0.30 0.30 Netback to the wellhead 14.3S 1~.3S 16.22 Compared to the Medium Crude price 15.00 15.00 15.00 Refinery Yields in Different Modes v. ~ml~x ; *"~1~ 450 I I I I I I I I I I I I I I I I I I I I I I I I I I Refinery Netbacks and Crude Price high ~ IMm I I 7O I An asphaltene I 71 I , L~ STRNGHT RUN Asphalt Plant I I I I I I I I, WATER MAFt. E SYRUP Viscosity: resistance to flow I I I I I I I I ! I I I I I I F~Ct to fra~tionation Coke Burner [ Coking mixed gases ':'-'{~ow pressure) purge i molecular sieves (C~+) Pressure Swing Adsorption Ebullated bed reactor 2nd & 3rd reactors I Catalytic Hydrofining ] of Residue Olefins from Heavy Liquids I I I I I I I I I I I I I I I I I Dihydrogenation of iC4. First, calculate the Octane number of the blend: M Bbls X octane = Oct-Bbls SRGaso 3 70 210 CCGaso 2 80 160 Reformate 3 90 270 Coker Gaso 2 80 160 Blend 10 ? 800 800 I 10 = 80 lhe Octane number of the blend Next, calculate the amount of alkylate needed to bring the octane up to 90. Let X = the amount: Blend 10 80 800 AIIdate _~X 100 100 X Final Blend 10+X 90 800 + 100X So, 10+X times 90 must equal 800+ 100X (10+X)(90) = 800+ lOOX and X = 10 (M Bbls. of Alkylate needed) I I I Nexl', calculate the RYP ot: the blend with the Alkylate in it: M Bbl$ X RVP : RVP-Bbls Orig. Blend: I SR Gaso 3 10 30 CC Gaso 2 8 16 I Reformate 3 8 24 i Coker Gaso 2 6 12 : Alkylate 10 5 50 " 20 ? 132 132120 =6.5 RVP of the blend with the AIkylate Finally, calculate ho~ much nC4 you need to bring the blend up to 9 RVP. Let Y = that amount. Blend 20 6.$ 130 nC4 Y__ 50 50 Y : Final Blend 20 + Y 9 130 + 50 Y So, (20 + Y) times 9 must equal 130 + 50 Y and Y = 1.2 the amount of nC4 to bring the blend up to 9 RVP I I I I I I I I I I I I I lO Distillation Curves for Five Crudes I I I TOTAL GAS YIELDS Cat Reformer Yields Third: ]~ ~4o= ~ Total 54~6 Plm ~he ON gain · $0.04 ~80 % = 3~0 $7.76 I I I I I I I I I I I I I I I I I I' Sheet1 SHELL CALIFORNIA REFINING CAPACITIES (Oil & Gas Journal, December 200t) Thousands of barrels per day DIST VFU COKING FCCU CatRef HCU ALKY H__z ISOM H_.T.T ASPH & DIMER Shell - Bakersfield 65 39 22 0 15 24 0 25 0 CRU Feed 13 0 HGO 20 Other _9 Total 42 Shell - Martinez 159 102 Delayed 24 68 28 34 10 101 14 CRU feed 26 15 Flexi- 20 2 Naph/Arom 18 · Total 44 Kero/Dist 21 FCCU feed 71 Other 4_.~5 Total 181 Shell - Wilmington 99 58 41 35 30 29 9 ' 146 0 CRU 21 0 Naph/Arom 9 Kero/Dist 14 FCCU feed 3~3 Total 77 Page 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I