Challenges in Distribution of ULSDObservations From Colonial Pipeline ULSD Test : Challenges in Distribution of ULSD Observations From Colonial Pipeline ULSD Test Colonial Pipeline Company Buster Brown January 26, 2005


Topics: Topics Colonial overview Highway and Non-Road sulfur specification Observations from ULSD test Potential pipeline issues


Slide3: Colonial Pipeline Profile 5,519 mile system from Houston to New York Harbor; operating since 1963 Delivers more than 2.2 million bpd petroleum products from approximately 30 refineries to more than 250 terminals 20 percent of all U.S. liquid product delivered by pipeline are handled by Colonial


Slide4: * This figure is intended to illustrate the timeline for the final highway and nonroad diesel fuel sulfur control programs. It is not drawn to exact scale. Refer to 40 CFR Part 80 for specific program dates. L&M 15ppm


Colonial Pipeline ULSD Test: Colonial Pipeline ULSD Test Test Objective Determine capability to successfully move ULSD through existing pipeline system Use data to determine what physical and procedural modifications need to be made to ensure ability to transport ULSD Use test results to set sulfur specs at origins


ULSD Test Description: ULSD Test Description 1st Batch 140,000 B Destinations Birmingham, AL Atlanta, GA Nashville, TN Macon, GA Greensboro, NC 2nd Batch 144,000 B Destinations Birmingham, AL Atlanta, GA Greensboro, NC Baltimore, MD New York Harbor Both batches originated into 36” distillate mainline at Baton Rouge and distributed along system to representative locations.


ULSD Test Description (continued): ULSD Test Description (continued) Multiple product sequences; Gasoline, high- and low-sulfur diesel and kerosine leading the ULSD test batches. Over 1500 samples analyzed. Quantified trail-back of sulfur into ULSD batch from adjacent products. Quantified sulfur contamination from manifolds, valves, dead segments, and high sulfur tank bottoms. Used special protective operating procedures for test batch.


ULSD Test Observations: ULSD Test Observations “Successful” movement through system with sulfur increase of 6-8 ppm Size of product interface at head-end of batch was 1.5x to 2x normal Tank farms resulted in largest contribution of sulfur increase Valve integrity, tank line, manifold and dead leg segments were primary sources of sulfur increase Sulfur analyzers are complex and difficult to maintain Normal cutting procedures (gravity) may be ineffective. Therefore need quick, accurate, on-line sulfur analyzers.


Test Conclusions: Test Conclusions Significant volume downgrade of ULSD (estimated to be 8% to 10% of total ULSD volume) Sulfur analysis equipment needs improvement Continued effort to understand and minimize tank farm issues


Slide11: Sulfur Specification Potential ULSD Specification at Refinery Gate = 5-7 ppm Downstream Enforcement Tolerance + 2 ppm Test Method Reproducibility -4 ppm* Legal Requirement 15 ppm Transportation Degradation -6 to -8 ppm** Formula for Developing Product Specification * ASTM “round robin” results have a reproducibility range from 6-16 ppm. PLUS MINUS MINUS * *depending upon the number of tank farms


Product Movement Refinery to End User: 3rd Party Tank Product Movement Refinery to End User After refining, products must be shipped from the refinery to terminals where it can be loaded onto tanker trucks bound for gas stations, homes, businesses and airports. Refinery Tank Refinery Colonial Intermediate Terminal Tank Stubline Colonial Origin Terminal Tank Third Party Pipeline Colonial Intermediate Mainline Colonial Origin Mainline Stubline


Possible Colonial Sulfur Specification: Ideal Receive into Colonial 7 Upstream transfer system 2 Colonial improves from 6-8 5 Downstream transfer system 2 Reproducibility improves to 4 2 TOTAL 18 Possible Colonial Sulfur Specification The specification is 17 ppm at retail. If every step improves…


ULSD Pathforward for Colonial: ULSD Pathforward for Colonial Implement special operating procedures for ULSD handling. Evaluate construction of additional tanks and modify manifolds. - May require ULSD surcharge to existing diesel tariffs. Concern with upstream and downstream facilities handling. Work with customers to determine “appropriate, workable” specification at refinery gate. May not supply all diesel grades to all markets.


Q&A: Q&A