NCWM 2015 Annual Meeting CRC Report No. 667 Overview Distribution System, Retail Housekeeping, and Dispenser Filters

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Tabitha Mosley
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and Dispenser Filters Russ Lewis NCWM Technical Session

1 NCWM 2015 Annual Meeting CRC Report No. 667 Overview Distribution System, Retail Housekeeping, and Dispenser Filters Russ Lewis NCWM Technical Session The Sheraton Philadelphia Society Hill Hotel Philadelphia, PA July 21, 2015

2 Unique Perspective 4 th Largest Refiner in U.S.; 1.7 mpd of Refined Crude Oil; 9.5% of U.S. Capacity Identified as 3 rd Best Employer by Forbes 2015; ~28,000 Employees 7 Petroleum Refineries Garyville: 3 rd largest refinery in U.S. with 522,000 bbls/day Galveston Bay: 4 th largest refinery in U.S. with 451,000 bbls/day 1 Biodiesel Refinery; Partial Owner in Several Ethanol Facilities ~100 Light and Heavy Product Terminals, Owned and Leased Owns and/or Leases over 8,300 Miles of Pipeline Owns ~250 Product Transports/Carriers Owns and Operates ~200 Barges (Inland and Coastal Waterways) ~5,500 Independent Retail Facilities (includes Marathon Brand); ~2,800 Speedway Retail Facilities; 1,200 Contract Retail Facilities 2

3 Focused and Integrated Network Refineries Marketing Area Refineries Connecting Pipelines Light Product Terminals Asphalt Terminals Inland Water Terminals Coastal Water Terminals Terminals Coastal Water Terminals Pipelines Inland Water Terminals As of June 30, 2013 Does Not Include Retail Outlets Tank Farms Butane Cavern Barge Dock Speedway Brand Marketing 3

4 The Dirty Truth Integrated Distribution System Must Take a Holistic Approach Cradle-to-Grave Inconsistency in Control/Measurement/Interpretation of Workmanship Who is Responsible Where is it Implemented What is Acceptable Identification of High Risk/High Exposure Scenarios Areas of More Rigorous Scrutiny/Interpretation Third Party Shipments Practices that Increase Risk (Live Tank/Running Gage, Poor Water/Microbial Management) Increased Restriction on Fuel Specifications Anticipated Vehicle Requirements More Stringent Objective Measurement of Particulate Control of <40-micron Particles (microscopic)

5 Examples of Varying Levels of Haze The above is a snapshot of an old Colonial Haze Rating chart. If you desire a copy of the ASTM D4176 Adjunct for Haze Rating, please contact ASTM to purchase.

6 Examples of Varying Particulate Levels L 0 (Bright and Clear) Swirled L 0.5 (0.5 mg/l) Swirled L 2.5 (2.5 mg/l) Swirled L 10 (10 mg/l) Swirled L 50 (50 mg/l) Un-swirled L 250 (250 mg/l) Un-swirled

7 Particulate of the Future Micron A metric unit of measurement equal to one one-thousandth of a millimeter 1 micron (1μ) = 1/1000 mm or 1 micrometer = 1/1,000,000 of a meter. Visualizing a Micron Human Red Blood Cell = 5 Microns Pollen = 7 to 10 Microns Average Human Hair Diameter = 100 microns Human Unaided Eye Cannot See <40 microns The picture to the right represents the thickness of copy paper. 7

8 Managing the Dirty Truth Perform System-Wide Workmanship Assessment Establish Permissible Limits for Water & Sediment Comprehend Product Changes Impacts on Systems Eliminate Poor Practices Implement/Improve Tank Water and Microbial Management Programs Consider Mechanical/Design Changes Enhancements To/Proper Use of Additives Communicate & Educate 8

9 Further Focus on Retail Fact-Finding for Good Housekeeping Battelle Corrosion Study EPA Corrosion Study CRC Report No. 667, Diesel Fuel Storage and Handling Guide Dallas-Fort Worth Airport Study ULSD Field Study BP Diesel Dispenser Filter Rig Study Anecdotal Evidence of Good Housekeeping Success Fuel Quality ASTM Specifications Workmanship Appendices Filters The Last Line of Defense

10 Fact-Finding Chronology of Industry Reported Corrosion at Retail 2007: Reports of Unexplained Corrosion to the Petroleum Equipment Institute Corrosion in Both Headspace and Wetted Portions of the System 2009: Steel Tank Institute (STI) Reports to ASTM No Correlation Established No Real Data Generated Speculation Abounds 2009: Clean Diesel Fuel Alliance (CDFA) Involved Consortium of Industry Groups PEI Questionnaire Results Suggested No Single Source CDFA Taskforce Formed Battelle Awarded Project to Investigate Generated Housekeeping Document for Retail Facilities 10

11 Fact-Finding Examples of Corrosion

12 Fact-Finding Battelle ULSD Study Project Conclusions Additives Not Involved in Corrosion Ethanol and Acetic Acid Observed in Diesel Tanks Acetic Acid is the Suspected Aggressive Species Initiating the Corrosion Acetic Acid Likely from the Bacteria Family Acetobacteraceae Additional Suppositions Increased Ethanol-Extended Gasoline and Transport Switch-Loading Suspected to be Source of Ethanol in Diesel USTs Ethanol is an Energy Source for Acetobacteraceae That Converts Ethanol to Acetic Acid Acetic Acid Contributes to Corrosion in Vapor Space and the Wetted Areas of USTs Sites with Best Practice UST Maintenance Practices Have Eliminated This Phenomenon

13 Fact Finding USEPA ULSD Study Follow-Up to Clean Diesel Fuel Alliance Battelle ULSD Study USEPA Acknowledges findings from 2012 Battelle work* Not conclusive, but suggested microbiologically influenced corrosion (MIC) a possible cause worth further research Microbes feed on ethanol present in ULSD, creating acetic acid Ethanol possibly entering ULSD through improperly manifolded tanks or switchloading of trucks that are incorrectly cleaned between fuels USEPA further suspects that Glycerol (possibly from biodiesel blended in ULSD), may also contribute to corrosion* Allowable concentration from production Out of specification biodiesel USEPA Examining >40 Retail Locations Carbon steel, coated steel, and fiberglass USTs Investigative approach similar to Battelle project but expanded * Source: Investigating Corrosion Observations of Metal Components in Underground Storage Tanks Storing Ultra-Low Sulfur Diesel (ULSD); PRESENTED AT NACE CORROSION 2015, RYAN HAERER, EPA OFFICE OF UNDERGROUND STORAGE TANKS

14 Fact-Finding CRC Report No. 667 Prepared by consortium that included: Engine and Equipment Manufacturers Automakers Petroleum Refining/Distribution Additive Companies Microbial and Fuel Subject Matter Experts Document provides: Guidance for Diesel Fuel Storage and Handling Focuses on maintaining clean distribution system

15 Fact-Finding - CRC Report No. 667 Significant sources of tank contamination are accumulated water and sludge that promote corrosion of fuel tank bottoms Water is the most common contaminant: Rain, ship/barge ballast, condensation in tanks, refining process Dissolved in fuel or suspended as tiny droplets Water is more soluble in biodiesel and biodiesel blends

16 Fact Finding - CRC Report No. 667 Increased Water Content Can Lead to: Accelerated corrosion/increased wear of metal surfaces that generate particulates Ice formation during cold weather (vehicle) Plugged filters Fuel degradation Microbial growth Dissolved inorganic salts (ice melt), acids, and other contaminants that can increase metal corrosion and harm engines

17 Fact Finding - CRC Report No. 667

18 Fact Finding CRC Report No. 667 Diesel is a food source for microorganisms and Water is needed to support microbial activity Aerobic and anaerobic bacteria, along with fungi require water to live in a hydrocarbon environment Microbial activity is often observed but not limited to low points in the fuel system because water typically migrates to these areas Microbes can produce mild and strong acids (hydrochloric, sulfuric, and nitric acids) Microbial Influenced Corrosion (MIC) generate particulate Microbial colonies and corrosion products can plug filters, screens, and other small orifices Reduce microbial growth through water removal and biocides Reduce microbial and particulate transfer from one system to another through filtration

19 Fact-Finding CRC Report No. 667

20 Fact Finding DFW Study Dallas-Ft. Worth Airport transitioned to ULSD in 2011, stored in fiberglass tanks Late summer 2012, began experiencing corrosion of metal parts and filter plugging issues at three fueling stations Tank cleaning alone did not mitigate issue Examination of parts and tank bottoms suggested Microbial Influenced Corrosion Microbial monitoring/mitigation, tank water management/removal, and periodic tank cleanings have been implemented at DFW.

21 Fact Finding DFW Study Vapor Phase No Contact with Fuel Submerged Fill Tube Fuel Phase

22 Fact Finding BP Diesel Filter Rig Laboratory Setup to Evaluate Diesel Fuel Cleanliness Based on ISO 4406 Criteria

23 Fact Finding BP Diesel Filter Rig

24 Fact Finding BP Diesel Filter Rig WWFC Recommends ISO 18/16/13 Laboratory Setup Includes: Diesel Fuels with Varying Levels of Cleanliness 30-, 10-, 5-, and 2-Micron Diesel Dispenser Filters To Achieve Clean Diesel at WWFC Target: 30-Micron Filters Didn t Improve Cleanliness of Fuel Regardless of Contamination Level 10-Micron Filters Effectively Clean Normal Contamination (ISO 22/21/17) to WWFC Target 5- or 2-Micron Filters Needed for Diesel with Dirty Levels of Contamination (ISO 24/23/20)

25 Fact Finding Anecdotal Success Speedway: ~2,750 Retail Locations ~1,500 Locations in Midwest U.S. No Acute Corrosion Issues for a Decade Extensive and Aggressive Housekeeping Programs (Best in Class) Developed from Experience Cooperation with MPC Subject Matter Experts Speedway s Vision is to be the Customer s 1 st Choice for Value and Convenience. Consumers expect our products to meet high quality standards and perform correctly every time.

26 Fact Finding Anecdotal Success Water Contamination Tank Bottom Sampling Corrective Action at 1-inch in Diesel Tank Bottoms Dispenser Sample Bright & Clear Microbial Mitigation Visual Observations Inspection and Evidence of Corrosion Testing Treatment (if necessary) Particulate and Debris Tank Bottom Sampling Corrective Action is Dependent Upon Level, Filter Change Frequency, Etc. Dispenser Sample Bright & Clear

27 Fact Finding Anecdotal Success Dispenser Filters 10-Micron, 95% Efficient, Water Absorbing Required Flow Rate Monitoring (State-of-the-Art) Routine Change-Out Intangibles Quick to Respond to Quality Issues Company-Owned: More Control More Restrictive Hauler Requirements In-House Maintenance Personnel Tank Conversion Procedures

Fact Finding Anecdotal Success Example of Empty Retail UST Diesel Tank from Speedway Facility that utilizes Best Practice good housekeeping techniques.

28 Fact Finding Anecdotal Success Example of Empty Retail UST Diesel Tank from Speedway Facility that utilizes Best Practice good housekeeping techniques. Retail UST Bottom Before Cleaning; Note that very little debris is observed. Retail UST Bottom After Cleaning; No pitting or excess corrosion is observed.

29 Fuel Quality Workmanship ASTM Fuel Workmanship Specifications Generally Qualitative D975 Diesel: The finished fuel shall be visually free of undissolved water, sediment, and suspended matter. Language is Consistent throughout D02 Light Product Specifications 29

30 Fuel Quality - Appendices From ASTM D975: X6 MICROBIAL CONTAMINATION X6.1 Uncontrolled microbial contamination in fuel systems can cause or contribute to a variety of problems, including increased corrosivity and decreased stability, filterability, and caloric value. Microbial processes in fuel systems can also cause or contribute to system damage. X6.2 Because the microbes contributing to the problems listed in X6.1 are not necessarily present in the fuel itself, no microbial quality criterion for fuels is recommended. However, it is important that personnel responsible for fuel quality understand how uncontrolled microbial contamination can affect fuel quality. X6.3 Guide D6469 provides personnel with limited microbiological background an understanding of the symptoms, occurrences, and consequences of microbial contamination. Guide D6469 also suggests means for detecting and controlling microbial contamination in fuels and fuel systems. Good housekeeping, especially keeping fuel dry, is critical.

31 From ASTM D975: Fuel Quality - Appendices X8.4 Water and Sediment Controls X8.4.1 Several strategies may be used separately or in combination to control the amount of water and sediment that are ultimately delivered to the end user s fuel tank. X8.4.2 One potential method for ensuring that clean and dry fuel is delivered to the vehicle or equipment is to use high volume particulate filtration, combined with either water coalescing or water absorbing capability. Such a system should be designed based upon expected local fuel quality, operating conditions, and the customer s needs. Factors to be considered may include: X The flow rating for the filtration, coalescer, or absorber being at least as high as the maximum expected fuel transfer rate;.

32 Filters The Last Line of Defense Retail UST water, microbes, and corrosion are commonplace, based on studies cited. Proactive Housekeeping will minimize contaminants, but is not a guarantee to stop these from occurring. ASTM D975 Workmanship and Appendices imply the need for filters.

33 Filters The Last Line of Defense

34 The Real Dirt Last Several Years: Substantive Changes in Fuels and Vehicle Fuel Systems Cleaner Fuels Desired in the Marketplace Appropriate Housekeeping Protocol Throughout Distribution System UST Maintenance/Mitigation Required and 10- Micron Minimum Dispenser Filters Recommended Ultimate Goal is to Provide Consumer High Quality Product 3 4

SENECA COMPANIES TANK CLEANING & FUEL POLISHING OVERVIEW

SENECA COMPANIES TANK CLEANING & FUEL POLISHING OVERVIEW Tank cleaning and fuel polishing Table of contents Intro and background Fuel quality now vs. then Causes and effects Corrosion Issues Process description