API Lubricants Group - Standards Minutes of Teleconference 10-JAN-2013

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1 The API Lubricants Group Oil Marketers has a teleconference to discuss the interval between PC-11 and GF-6. Attendees on the teleconference are listed below: Luc Girard Petro-Canada (Chair) Scott Lindholm Shell (Vice Chair) Jim Linden Total Reginald Dias Conoco-Phillips Mike Ragomo ExxonMobil Scott Rajala Idemitsu Bob Sutherland Shell Charles Baker - ExxonMobil Larry Kuntschik ILMA Mathew Ansari - Chevron Rodney Walker Safety-Kleen Mike Brown SK Lubricants Barbara Dennis BP Dave Smith API Harji Gill Pinnacle Dennis L Bachelder - API John Rosenbaum - Chevron Kevin Ferrick - API Joan Evans - Infineum Mike See API Dan Pridemore - Afton Chris Cornish Infineum Beth Schwab - Afton Simon Tung R.T.Vanderbilt Kari Kulmala Neste Base Oil Steve Swedberg Lubes N Greases Paula Vital - Amyris Gail Evans - Lubrizol Agenda: 1. First License Interval between GF-6 and PC-11 Oil Marketer Input LG Decision on Minimum Interval 2. Annex C: Auto Oil Process Confirm Annex C th Review Shell Comments/Changes (Annex-C th Revised.Shell) Review Lubrizol Comments/Changes (Annex-C th Revised (LZ)) Review Infineum Comments/Changes (Annex-C th Revised jme) Feasibility of bringing to ballot 3. Annex G: Changes to S Category to adjust for new SAE Viscosity Grade Changes for New SAE Viscosity Grade (Annex-G-Update-for-new-SAE-Vis-Grade) Authorization for Ballot 4. Universal Oil Consider Label Statement (Warning) 5. Two New Task Forces to be Developed Motor Oil Matters Task Force Diesel Exhaust Fluid Task Force API Antitrust Reminder API gave an Antitrust reminder to the teleconference participants. 1. First License Interval between GF-6 and PC-11 Luc Girard reported that the Oil Marketers have agreed to a GF-6 First Licensing Date of 30- SEP This would mean a full 9 months between the First Licensing of PC-11 (01-JAN- 2016) and GF-6 (30-SEP-2016). Page 1 of 5

2 ACC confirmed they have no issue with this timing. Lubricant Group members had no concerns over the first licensing dates: PC-11= 01-JAN-2016 GF-6 = 30-SEP Annex C: Auto Oil Process See Attachment 1 Annex C th See Attachment 2 Annex-C th Revised.Shell See Attachment 3 Annex-C th Revised (LZ) See Attachment 4 Annex-C th Revised jme Confirm Annex C th Lubricants Group confirmed the changes given in the Annex C draft dated (Attachment 1) Using this as the base LG reviewed the comments and changes proposed by LG Members. Shell Comments/Changes on Annex C Shell (Scott Lindholm) reviewed their proposed changes to Annex C. (Attachment 2) C.1 General - The proposed addition specified a preference for engine test under the jurisdiction of ASTM subcommittee D02.B0, monitored by the ASTM test monitoring center and under the governance of an ASTM surveillance panel. A question was raised as to the acceptability of naming ASTM as the preferred organization for accepting engine tests. It was suggested that other open consensus based processes could be included. There were several attempts to develop revised wording to state the acceptance of engine tests had to be open and consensus based process. API (Kevin Ferrick) considered all the comments and started to develop a draft statement. A draft could not be completed on the teleconference. Once the new statement is developed it will be reviewed by the Lubricants Group for acceptance. ACTION: Kevin Ferrick to complete draft statement for Annex C.1 General to specify the introduction of Engine Tests must use an open, consensus based process which includes open monitoring and governance of the testing results. Statement will be reviewed and offered as a change to Annex C.1 General Lubrizol Comments/Changes on Annex C Lubrizol (Gail Evans) reviewed their proposed changes to Annex C. (Attachment 3) C.1 General - The first change was to change Certification Mark to Certification Marks. This would allow for the two distinct Certification Marks expected for GF-6. After discussion it was determined that there is too much uncertainty about the GF-6 Certification marks so it is too early to change the draft wording in Annex C. C.2.1 Membership The proposed wording changed the section to Voting Membership and outlined the responsibilities and requirements necessary to be a voting member. The proposed wording requires AOAP Voting Membership to participate in funding of activities Page 2 of 5

3 deemed necessary to developing AOAP performance specifications. This requirement resulted in a discussion on the API process and if it can require voting members to help fund to necessary activities such as matrix testing. API (Michael See) reviewed the API Standards process and procedures which require all committees to be open. The proposed Voting Membership which requires Voting Members to provide funding for GF-6 testing may pose a legal barrier. The GF-5 ILSAC Oil process and the proposed GF-6 Auto Oil process were compared. There was a view that the proposed GF-6 Auto Oil Voting Membership process was closer to API standards process than the previous GF-5 ILSAC Oil process. To resolve the legal question it was suggested that attorneys from API, ACC and Auto Alliance meet and discuss the linking of AOAP voting and funding of necessary engine tests. ACTION: API (Michael See), ACC (Michele Schoeppe) and Auto Alliance (Susan Conti) to meet and discuss if Auto Oil Advisory Panel voting membership can be linked to funding for necessary engine tests. Alternate wording for Annex C - Voting Membership is to be developed if needed. C.2.1 Proxy Voting Lubrizol (Gail Evans) reviewed the changed to clarify the Proxy voting in C.2.1. There were no objections regarding Proxy Voting. C Review of Proposed ILSAC Draft Specifications Regarding the statement, (If appropriate, the AOAP may also send the proposed draft to JASO and/or CEC. Lubrizol (Gail Evans) raised the question: Why is it JASO & CEC? Is this because they are test developers? Should this by auto trade groups ACEA? It was agreed that the statement should be generic and not reference specific organizations. An example of the wording would be: AOAP may also send the proposed draft to any interested standard setting organizations. Infineum Comments/Changes on Annex C Infineum (Joan Evans) reviewed their proposed changes to Annex C. (Attachment 3) Infineum s offered changes to C.2.1 Membership which links voting membership to funding to establish the specification. Infineum offered two funding mechanisms: 1) may be via individual member contribution with the AOAP then acting as a consortium or 2) via trade association membership/collection. Funding would support necessary engine tests, bench test or other expenses s (e.g. market studies). It was agreed to add the Infineum changes to the Legal discussion by API, ACC and Auto Alliance. ACTION: API, ACC and Auto Alliance lawyers to consider the Infineum comments on linking AOAP Voting Membership to necessary financial support. Alternate wording for Annex C - Voting Membership is to be developed if needed. Page 3 of 5

4 Feasibility of bringing Annex C to Ballot Based on the questions raised during the discussion it was decided that Annex C is not ready for ballot. Balloting changes to Annex C will be rescheduled until the revised wording is available. 3. Annex G: Changes to S Category to adjust for new SAE Viscosity Grade See Attachment 5 - Annex-G-Update-for-new-SAE-Vis-Grade API (Dennis L Bachelder) offered an update to Annex G to adjust S Categories for the new SAE 16 Viscosity Grade (e.g. SAE xw-16) Viscosity Grade Performance Criteria Bench Test and Measured Parameter a L-38 or Sequence VIII shear stability SAE 0W-20, SAE 5W-20, SAE 5W-30, SAE 10W-30 j All Others j ASTM D4683, D4741, or D5481, High Temperature/High Shear 150 C, min Figure 1 Proposed Changes to API 1509 Annex G 2.6 mpa s NR ~ ~ i Homogeneous with SAE Reference Oils. j Ten-hour stripped kinematic viscosity must remain in original SAE viscosity grade except XW-20 which must remain 5.6 mm²/s. There were no objections to the modified Footnote J. Lubrizol (Gail Evans) noted that the entry, 2.6 mpa s was not needed as it was covered in the SAE Viscosity specification. Additionally there was a proposal to list the 2.6 mpa s minimum HTHS in the All Others column. The discussion questioned this as it might restrict 10W single grade oils and could restrict xw-16 oils. There was a suggestion to develop a footnote that stated that these categories were developed before SAE 16 and did not consider this viscosity grade in their development. Given the discussion API agreed to reconsider the proposed changes to Annex G. ACTION: API to review and reissue changes to Annex G to adjust for the existence of the new SAE Viscosity Grade Universal Oil Lubricants Group has been considering how to respond to ILSAC s complaint on Universal Oil (Oils with both a C and S Service Category) ILSAC has complained that the current system allows high Phosphorus oils (>800 PPM P) to be used in gasoline engines. One proposed response to ILSAC was for Oil Marketers to put on the label a warning statement such as Warning: Use of C Category oils may damage catalytic converters. The discussion showed a lack of consensus on how to proceed. Page 4 of 5

5 It was agreed that Oil Marketers should have a teleconference to establish a preferred resolution to the Universal Oil Complaint. ACTION: Schedule teleconference to discuss Warning Statement for Universal Oils. 5. Two New Task Forces to be Developed Luc Girard advised that two new API Task Forces are being developed. The Task Forces are: Motor Oil Matters Task Force Diesel Exhaust Fluid Task Force API will be sending announcements which will ask for volunteers for these Task Forces. 6. Lubricants Group Meeting before AOAP Lubricants Group agreed in principle to try scheduling a meeting before AOAP Meetings. It was agreed that there will be no LG Meeting before the upcoming February 6 AOAP meeting. The teleconference described here (taking place on 10 Jan 2013) will serve as the meeting before the Feb. 6 AOAP Meeting. Starting in March there will be an LG Meeting the afternoon before the AOAP Meeting. LG Meeting AOAP Meeting PM - 13-MAR-2013 AM - 14-MAR-2013 PM 10-APR-2013 AM - 11-APR-2013 PM 08-MAY-2013 AM - 09-MAY-2013 PM 12-JUN-2013 AM 13-JUN-2013 PM 10-JUL-2013 AM 11-JUL-2013 PM 07-AUG-2013 AM 08-AUG-2013 PM 11-SEP-2013 AM 12-SEP-2013 PM 09-OCT-2013 AM 10-OCT-2013 PM 13-NOV-2013 AM 14-NOV-2013 PM 11-Dec-2013 AM 12-Dec-2013 The teleconference was adjourned at 3:35 PM EST. Page 5 of 5

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