1. The Proven Heating Oil Additive The Proven Heating Oil Additive

2. Product Background Co-developed by Mobil Oil Corp. R & D & Octel-America (DuPont) for Terminal additization Co-developed by Mobil Oil Corp. R & D & Octel-America (DuPont) for Terminal additization Bench-Tested in Lab, Trials in Several NE Markets Bench-Tested in Lab, Trials in Several NE Markets Extensively Field Tested with Santa Fuel Co. in Bridgeport CT Extensively Field Tested with Santa Fuel Co. in Bridgeport CT Presented at Brookhaven National Labs Presented at Brookhaven National Labs

3. Fractional Distillation Column Separates crude oil components by boiling ranges

4. Why the need for a Heating Oil Additive ? Refinery processes generally result in poor fuel quality Refinery processes generally result in poor fuel quality Cracking hydrocarbons creates more higher valued products from low-gravity bottoms, but changes molecular structure of feedstock, resulting in: Cracking hydrocarbons creates more higher valued products from low-gravity bottoms, but changes molecular structure of feedstock, resulting in: Unstable product with chemically reactive bonds Unstable product with chemically reactive bonds Fine particulates (sludge pre-cursors), then Fine particulates (sludge pre-cursors), then Sludge (gums, varnish, sediment, etc.) which can- Sludge (gums, varnish, sediment, etc.) which can- Clog filters, strainers, nozzles, creating Clog filters, strainers, nozzles, creating Fuel-related service problems Fuel-related service problems

5. Fuel Stability A fuel is considered unstable when it undergoes chemical changes that produce undesirable consequences such as insoluble gums, deposits and sediment that can plug fuel filters or fuel injection systems.

6. What should a Heating Oil Additive do ? What should a Heating Oil Additive do ? Stabilize fuel by disabling chemically reactive bonds (prevents cracked molecules from recombining, repolymerization) Stabilize fuel by disabling chemically reactive bonds (prevents cracked molecules from recombining, repolymerization) Gradually dissolve sludge and disperse water Gradually dissolve sludge and disperse water Clean fuel system and nozzles Clean fuel system and nozzles Protect tank from rust and corrosion Protect tank from rust and corrosion Deactivate metal particles in fuel Deactivate metal particles in fuel

7. An Effective Heating Oil Additive program will: Reduce Fuel-related Service Calls Reduce Fuel-related Service Calls Reduce Demands on Service Technicians Reduce Demands on Service Technicians Increase Customer Satisfaction, and Increase Customer Satisfaction, and Be a Powerful Marketing Tool Be a Powerful Marketing Tool

8. Why use Avalux Heating Oil Additive ? Components in Avalux: Components in Avalux: Considered Gold Standard in Industry Considered Gold Standard in Industry Basis for only long term stability additive for US Army Basis for only long term stability additive for US Army The only chemical type approved by US Navy The only chemical type approved by US Navy Regarded as best available Detergent/dispersant Regarded as best available Detergent/dispersant Work immediately to stabilize fuel, clean fuel system and disperse water Work immediately to stabilize fuel, clean fuel system and disperse water Formulated to work gradually to dissolve sludge Formulated to work gradually to dissolve sludge PROVEN TO REDUCE FUEL RELATED SERVICE CALLS!

10. Economics: Cost vs. Savings Santa Fuel experienced a reduction of 11.1 fuel-related service calls per 100,000 gals. delivered Santa Fuel experienced a reduction of 11.1 fuel-related service calls per 100,000 gals. delivered At $100 per service call, a savings of $1,110 At $100 per service call, a savings of $1,110 Cost to additize 100,000 gals. is about $500 Cost to additize 100,000 gals. is about $500 Net Savings is $610 per 100,000 gals. delivered. Net Savings is $610 per 100,000 gals. delivered.

11. How to Additize Fuel Three Basic Methods- Three Basic Methods- Hand-Additize to Storage or Truck Hand-Additize to Storage or Truck Calibrated Containers (9000:1 Treat-rate) Calibrated Containers (9000:1 Treat-rate) Bulk Plant Injection Systems, or Bulk Plant Injection Systems, or On-Truck Injection Systems On-Truck Injection Systems (4000:1 Treat-rate) (4000:1 Treat-rate)

12. Other issues impacting fuel quality Heating Oil has become a commodity ! Heating Oil has become a commodity ! Now Unbranded / NYMEX quality standards Now Unbranded / NYMEX quality standards Mixing of fuels creates an even less stable blend Mixing of fuels creates an even less stable blend Distillates produced to fungible standards in NE Distillates produced to fungible standards in NE Colonial Pipeline / Buckeye Pipeline set minimum distillate specifications. Colonial Pipeline / Buckeye Pipeline set minimum distillate specifications.