Crude Oil Quality Association
Domestic Trading Center Subcommittee (DTC)

• February 23, 2006 Meeting Minutes
  New Orleans , Louisiana

  Mission Statement

  We believe that crude oil designated as Domestic Sweet needs a few basic parameters in addition to gravity and sulfur in order for crude to fall within this designation.  These additional parameters are necessary to better define Domestic Sweet, while at the same time reducing its variability.  This will allow refiners to better determine the actual value of Domestic Sweet to them as they can with other, well defined crude types.

  Additional Parameters:

  Nickel               Vanadium         Tan      HTSD

  The parties interested in activity and participation as of February 23^rd are as follows:

Aaron Dillard with ConocoPhillips presented a summary of the 2000 Basin Pipeline sampling and testing program, a COQA Mid-Continent Subcommittee collaborative effort between the pipeline companies, shippers and connecting carriers.

During this meeting:

• Don Hamilton submitted a written formal mission statement and some minor modifications were agreed upon (as per above).  The final draft will be posted on the COQA website.
• We discussed the collection of data on Domestic Sweet from Cushing , Oklahoma .  Harry Giles tabulated the outside testing lab quotations for the agreed DTC testing protocol and the frequency of two samples per week was deemed acceptable.
• Participating members who may already have database numbers on all or some of the parameters were asked to check with their management to see if this data could be made available to COQA (stripped of sensitive information on sources and destinations)
• We asked the DTCS members to indicate any interest in assisting in funding the testing.  The following responded:

Aaron Dillard & Pat Morgan              ConocoPhillips
Mike West                                            NCRA
Dennis Sutton                                      Marathon
Jeff Thompson                                     Coffeyville
Patti Edens                            will forward idea to Shell Refinery contacts
Anne Shafizadeh                                  Chevron (maybe)
Bill Fucheck & Bruce Carlile               Caleb Brett
Margaret Monahan                             Exxon
John Maurer                                         Valero

• Maurer asked if any of the contract labs would be willing to perform the testing gratis
• COQA would act to collect all testing funding and pay contract lab invoices
• Analysis data would be presented to the group via Email quarterly
• As data is reviewed and at the end of the year cycle we would agree on what is deemed as typical Domestic Sweet values and determine the acceptable variation from typical – beyond which would be triggers for value adjustments or rejection.

Action Items:

• Those who indicated they have may have interest in funding are to let the group know at what level.  We need to cover roughly $55,000 of expense.
• Those members who currently have data on this material they can share are to sanitize and make available Tish/Harry.
• COQA would contact some of the servicing carriers at Cushing, inform them of the COQA DTCS intentions and solicit attendance at the May meeting.
• Jeff Thompson indicated they may be able to help with the finances and provide samples/shipping and provided a contact at Enbridge to add to the analysis labs to save freight.
• John Maurer indicated Valero’s lab in Ardmore Oklahoma may be willing to perform the testing for the first year – gratis
• Harry Giles sent out the following note to providers in the Cushing Area

The Domestic Trading Center (DTC) Subcommittee of the COQA is considering initiating a sampling and testing program in the Cushing area to determine the true properties of Domestic Sweet and, further, to decide if requesting specifications for that common crude stream would be valid.  Your assistance in delineating the best site for this sampling and testing program is respectfully requested.

Would you please respond to the issues briefly outlined below and help us properly establish the starting point.

1. Does your company already have a sampling and testing program?

    If yes, what properties and what locations are covered?

2. Would you or a colleague please plan on attending the next COQA meeting, to be held at the Marriott West Loop in Houston on May 25?  The COQA member companies very much appreciate your cooperation.

If you have questions, please do not hesitate to contact either myself, the COQA Director,  or John Maurer of Valero, the Chairperson of the DTC Subcommittee (John.Maurer@valkero.com).

Thank you and Regards,
Tish Marshall
COQA Director
216-521-9213