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CC 2015-04-14_11a Barnett Cox Rail Project PPT Presentation Spring 2015 FINALSanta Maria Refinery: Preparing for the Future 1 I’m Jim Anderson [title] of the Santa Maria Refinery. I grew up (where – good to say if you are homegrown talent) My family and I (etc, Manager of the now P66 Refinery. Pleased to be here today, etc. Very grateful to all of you for taking the time to be here today, for your interest in this project. We need your support. Let me take about 5-10 minutes to briefly recap what the project is all about and what the issues are … and then I’d love to answer your questions and, yes, we want to discuss with you ways that you can help us. Key contributor to California’s supply of clean gasoline Provide initial-stage step in refining crude Refine 48,000+ barrels daily Phillips 66 – Santa Maria Refinery Vital Energy Cog Employs 135 full-time & ~70 specialized contractors Virtually all are head-of-household jobs Typical salary is $80,000+ Plus excellent medical and pension benefits Phillips 66 – Santa Maria Refinery Key Driver of Local Economy Total site payroll exceeds $43 million More than $2 million paid in state & local taxes $31 million annually in purchasing from vendors Phillips 66 – Santa Maria Refinery Annual Economic Impacts Requesting SLO County Approval To Extend existing rail spur track on refinery property Construct crude-by-rail unloading facility Phillips 66 – Santa Maria Refinery Rail Project Proposal 6 Dramatic Decline in California Crude Additional sources of crude are needed to ensure refinery’s viability Additional sources are not available through pipelines Rail is only feasible alternative Phillips 66 – Santa Maria Refinery Why The Project Is Necessary Additional Rail Access On Refinery Property Track and facilities for up to five, 80-car unit trains per week (less than one mile each) Will only change the way some of the crude oil arrives at the refinery Necessary to keep refinery viable Phillips 66 – Santa Maria Refinery What We Are Proposing Refining & Marketing; Midstream and Chemicals Second largest refiner in North America More than 10,000 branded marketing products 15,000 miles of pipeline; 56 terminals 14,000 employees No storage capacity increase No production increase No refining process changes No Bakken crude No increase in coke piles No increase in volatility Phillips 66 – Santa Maria Refinery What We Are NOT Proposing Refining & Marketing; Midstream and Chemicals Second largest refiner in North America More than 10,000 branded marketing products 15,000 miles of pipeline; 56 terminals 14,000 employees Refinery has operated safely for 60 years All rail cars in Phillips 66 fleet meet or exceed Federal safety requirements Phillips 66 working at state level on new legislation to fund additional haz mat training and equipment Union Pacific operates with high tech safety measures; impressive record Phillips 66 – Santa Maria Refinery Safety Refining & Marketing; Midstream and Chemicals Second largest refiner in North America More than 10,000 branded marketing products 15,000 miles of pipeline; 56 terminals 14,000 employees Phillips 66 – Santa Maria Refinery Safety Crude oil trains have been travelling through SLO County for more than a decade. Refining & Marketing; Midstream and Chemicals Second largest refiner in North America More than 10,000 branded marketing products 15,000 miles of pipeline; 56 terminals 14,000 employees Phillips 66 – Santa Maria Refinery Draft EIR recirculated last Fall Comments being processed Awaiting Final EIR (anticipate Q2) Then to SLO County Planning Commission Where We Are in Approval Process Phillips 66 – Santa Maria Refinery Questions? PHILLIPS 66 2012 I am so proud to be part of this operation. We have an amazing group of people who share in our company’s commitment to safety. Who take pride in what they do. Who know that every one of them is key to our record of safe and sensitive operations. We are honored to be recognized by the XXXXXX… and I thank you both for this award and for the opportunity to brag a bit about our crew today.