SENECANEWS IN REVIEW. MESSAGE from JC NOVEMBER 2016 ISSUE 11. Page 1. Dear Customers,

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Herbert Davidson
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Inside this issue: Message from JC P1 Environmental Services P2 Waste Solutions P3 Seneca Sales P4 Fuel Systems P5 SENECANEWS IN REVIEW NOVEMBER 2016 ISSUE 11 MESSAGE from JC Dear Customers, As I sit

1 Inside this issue: Message from JC P1 Environmental Services P2 Waste Solutions P3 Seneca Sales P4 Fuel Systems P5 SENECANEWS IN REVIEW NOVEMBER 2016 ISSUE 11 MESSAGE from JC Dear Customers, As I sit at my desk writing this, I feel compelled to first extend a heartfelt thank you to all our valued customers has been a great year and we are grateful for your business and for allowing us to continue serving you. As we head into 2017 we will be revisiting our strategic plan, as we do every two years, to make sure we are closely aligned with your needs and continue to meet and exceed your expectations. We have had some great conversations already and you will see some welcomed adaptations and improvements over the next several months. I often get asked what is new at Seneca these days. It can be challenging to answer as we have a number of projects we are working on, and to simply highlight one isn t indicative of all that is happening. With that said, one particular area we have ventured into is frac tanks. We recently purchased 40 frac tanks that are now available to rent out of our Des Moines, Sioux City and Davenport offices. We will now be able to self-perform this service for our customers and have better control of the quality and timeliness of the product. We hope to expand this service to our other branches as well over the coming year. Please contact our Waste Solutions group with any frac tank needs or questions you have. In addition, we recently celebrated four years without a lost time work incident in our Waste Solutions division. Safety is the top priority for us and it is no accident that we were able to achieve this milestone. Each and every Seneca employee takes safety very seriously and works tirelessly to ensure that not only they are safe, but those working around them are safe as well. We fully intend for this record to be broken again in 2017, keeping everyone on our jobs sites safe and returning to their families when the job is over. Thank you all for your business and support. Sincerely, JC Risewick Chief Operating Officer Page 1

Environmental Services Division Rich Richards Process Control Panels Control Panels are one of the most important components in remediation systems.

But what are process control panels and how do they integrate with our remediation systems?

These panels can be as simple as a relay logic controls (timers, counters and contactors) to a full Programmable Logic Controller (PLC) system with Human Machine Interface (HMI), power supplies,

We can build from a list of materials provided by the client or obtain the materials ourselves, given that we have some of the best buying power in the industry.

2 Environmental Services Division Rich Richards Process Control Panels Control Panels are one of the most important components in remediation systems. Seneca s Remediation and Process Control Shop takes pride in designing and building custom control panels for commercial, industrial, government and environmental industries and applications. But what are process control panels and how do they integrate with our remediation systems? Process control design and installation is critical to ensuring a client s system operates properly and safely. These panels can be as simple as a relay logic controls (timers, counters and contactors) to a full Programmable Logic Controller (PLC) system with Human Machine Interface (HMI), power supplies, variable frequency drives (VFD), SCADA systems and telemetry. We can build from a list of materials provided by the client or obtain the materials ourselves, given that we have some of the best buying power in the industry. Our Remediation and Process Control Shop is an Underwriters Laboratory (UL) 508A and 698A listed facility, providing the highest quality workmanship. Seneca s specialty is the design and craftsmanship of explosion proof environments, whether it s for gas vapors, paint fumes or other volatile substances. All panels are subject to a full shop inspection, UL certification, if required, and extensive testing. On-site installation, commissioning and training can also be provided. Since 1993 when the Remediation division was first formed, we have produced over 1,400 turnkey systems for the environmental remediation industry. Our four journeyman and master electricians design, build and oversee the entire product completion. Our panels have been installed in places all over the world such as Puerto Rico, Belize, Hawaii, Alaska and the Philippines. We take great pride in the product we produce for our clients. Rich Richards Master Electrician / Shop Foreman Page 2

$Now Providing Frac Tank Services The term frac is short for the term fracture, which originated in the oil fields and is a generic term for steel mobile storage units containing liquids.$ $Waste Solutions Services Division Chris Biellier Waste Solutions is pleased to announce frac tank delivery and rental to supplement existing cleaning, transportation and disposal services as part of$ In the past, customers had to rely on outside vendors to arrange for planned or emergency storage needs, creating project and deadline delays due to the unavailability or mobilization costs.

In the past, customers had to rely on outside vendors to arrange for planned or emergency storage needs, creating project and deadline delays due to the unavailability or mobilization costs.

$Seneca has added a large fleet of 21,000-gallon frac tanks currently being distributed amongst three branch locations of Des Moines, IA, Davenport, IA and South Sioux City, NE with future expansion$

3 Now Providing Frac Tank Services The term frac is short for the term fracture, which originated in the oil fields and is a generic term for steel mobile storage units containing liquids. Because of their mobility and functionality, they have spread to additional industries for emergency or temporary storage of petroleum fluids, process liquids, waste water, among others. Waste Solutions Services Division Chris Biellier Waste Solutions is pleased to announce frac tank delivery and rental to supplement existing cleaning, transportation and disposal services as part of our expanding offerings for customers construction, liquid management and environmental project needs. In the past, customers had to rely on outside vendors to arrange for planned or emergency storage needs, creating project and deadline delays due to the unavailability or mobilization costs. Now with a single call, the project can be completed from start to finish with ease for our customers. With this new capability, Seneca can continue to truly provide The Complete Solution. Seneca has added a large fleet of 21,000-gallon frac tanks currently being distributed amongst three branch locations of Des Moines, IA, Davenport, IA and South Sioux City, NE with future expansion in Tulsa, OK. The tanks are readily available 24/7 and 365 days a year to accommodate any job site request, whether hazardous or non-hazardous. Seneca s frac tanks are designed and constructed by Dragon Products, portable and ready to assist with any temporary remediation, groundwater or wastewater storage or construction project water transfer. Our frac tanks have a specially designed converging pitch floor to ensure fluids can be emptied regardless of ground slope conditions. Seneca will deliver to your Midwest region job site or facility, pick up after completion and properly dispose of excess liquids. In addition to delivery of frac tanks, Seneca also provides waste stream analysis, pumping and off-site transportation and disposal of stored liquids. Lastly, Seneca provides the trained and certified personnel to perform interior cleaning of the frac tanks prior to returning to our branch locations. With these new frac tank services, you can rely on Seneca to be your Complete Solution, whether your project is for drilling operations, waste disposal, industrial or refinery maintenance, construction, disaster response or general maintenance projects. Chris Biellier, PG Vice President Waste Solutions Services & Environmental Services Page 3

4 Seneca Sales Chris Haggard Is it time to invest in mobile payment technology? Our customers continue to focus on upgrading their fuel dispenser credit card readers to accept EMV (EuroPay, MasterCard, Visa) chip and PIN cards due to the upcoming October 2017 liability shift. History tells us that fuel retailers facing this investment need to ask whether this will be their last upgrade investment. Projections suggest that mobile wallets, such as Android Pay and Apple Pay, will see rapid increases in use in the next three to five years. It s estimated that the use of mobile payments will expand from 19% to 31% among U.S. smartphone users by Additionally, the value of mobile payment transactions is forecasted to increase from $27 billion in 2016 to more than $200 billion by As a distributor for the leader in forecourt technology, Seneca is committed to bringing the latest advancements to our customers. With Gilbarco Veeder-Root s Near Field Communication (NFC) and cloud based network interaction, mobile payments are extremely easy to set up and integrate, allowing secure and seamless integration between mobile devices and a point of sales system. Mobile payments at the c-store not only allow your customers make transactions in a safe and secure manner, but also adds a lot of value to your operations, including media and marketing message integration such as issuing electronic coupons and receipts. It is highly likely that you will want to add NFC payment to your customer experience in the next two to three years. The cost of adding it now will be substantially less than adding it later as an upgrade, due to several factors. The cost of purchasing an upgrade kit for a Gilbarco Encore is estimated to be at least 25% higher than purchasing it as a factory-installed option on either a new dispenser or an EMV upgrade kit, not to mention the cost of a field installation and down time. The most efficient low-cost option for upgrading is to combine NFC with EMV upgrades. I get asked all the time, If this was your store, what would you do? I believe the smartest choice is to include the NFC reader with all EMV upgrades today. Why? 1. Adding NFC now is the most cost-effective option, versus a field upgrade in later years. 2. NFC benefits customer loyalty programs. 3. It provides the ability to market to customers who prefer this payment method. 4. It s a not matter of if you will need NFC - it s a matter of when. If you would like to learn more about how NFC and Seneca can assist your operations, please contact your local Seneca representative. Chris Haggard Vice President Sales Page 4

Fuel Systems Division Darren Binning Renewable Fuel Fast Facts Large retailers are adopting renewable fuel across the country and we will continue to see rapid growth in coming years.

5 Fuel Systems Division Darren Binning Renewable Fuel Fast Facts Large retailers are adopting renewable fuel across the country and we will continue to see rapid growth in coming years. Seneca represents and offers products and systems that are compatible with ethanol blends from E15 all the way up to E85, plus multiple biodiesel blends. Seneca and Gilbarco are leading the way with the development and installation of blending dispensers throughout the United States which gives the consumer expanded options for fuel. Along with new dispenser options and new blends of fuels comes increased pressure on the rest of the fueling system components. C-store operators/owners should keep in mind that there may be other components such as piping, tanks, hoses, etc. that require upgrading to be in compliance and handle higher ethanol and biodiesel blends. With renewable fuels being fairly new in the marketplace, it s important that we are educated on what our customers could be selling and how it benefits the end consumer. Below are some simple fast facts regarding E15 and E85 including pricing and compatibility with vehicles. Read more about the liquid renewable fuels industry at Iowa Renewable Fuels Association. E15 Facts E15 is an environmentally friendly fuel that burns cleaner than gasoline. Until recently, gasoline ethanol blends were limited to a maximum of 10% ethanol known as E10. E15 uses the same type of ethanol as blended in E10, but increases the ethanol content in a gallon of gasoline from 10% to 15%. Consumer adoption has been strong for E15 with it now representing more than 7% of total gasoline sales. Consumers have driven more than 150 million miles with E15 and have reported zero incidents. There has been more testing of E15 than any other fuel additive in the history of the EPA fuel waiver process. In 6 million miles of testing, the Department of Energy found no problems with the use of E15 in the numerous vehicles selected. E15 is often sold at a 5 to 10-cent per gallon discount to E10, and is approved by the Environmental Protection Agency for use in all 2001 and newer vehicles. EPA did not approve the use of E15 in 2000 and older model vehicles. This was primarily due to the fact that these older vehicles have a number of variables mileage, state of repair, types of use that would result in inconclusive test data. Page 5

Auto manufacturers approve the use of E15. According to an RFA analysis, approximately 70% of model year 2015 vehicles have been explicitly approved for the use of E15 by auto manufacturers.

E15 is also approved for use by Volkswagen, Audi, Toyota, Land Rover, Porsche, Jaguar, Honda and certain models of Mercedes-Benz and Lexus.

6 Auto manufacturers approve the use of E15. According to an RFA analysis, approximately 70% of model year 2015 vehicles have been explicitly approved for the use of E15 by auto manufacturers. General Motors recommends use of E15 beginning with its 2012 model year vehicles and Ford recommends E15 for its 2013 and newer vehicles. E15 is also approved for use by Volkswagen, Audi, Toyota, Land Rover, Porsche, Jaguar, Honda and certain models of Mercedes-Benz and Lexus. E15 can be used in nearly all existing fuel infrastructure without risk of damage. Underwriters Laboratories (UL) announced its research supports the use of fuel blends containing 15% ethanol at America s gas station pumps. E85 Facts E85 is a blend of 85% ethanol and 15% gasoline. The U.S. Department of Energy defines E85 as an alter native fuel that burns cleaner that gasoline. E85 is priced competitively with regular unleaded gasoline typically at least 50 cents less. As is the case with all types of fuel, the larger the number of outlets offering E85, the more competitively priced the fuel should be. When using E85, it s estimated that you may experience a 5% to 15% decrease in fuel economy because ethanol has a lower energy content than gasoline. However, E85 has a much higher octane rating (100 to 105) than gasoline. Fuel economy varies depending on such things as driving conditions, temperatures and tire pressure. For comparison purposes, aggressive driving habits can result in a 20% loss and low tire pressure can reduce mileage by 6%. Flexible fuel vehicles (FFVs) have been designed to operate on any ethanol blend up to 85% ethanol. Special onboard diagnostics read the fuel blend, enabling drivers to fuel with ethanol blends in any combination from a single tank. The computer adjusts the FFV s fuel injection and ignition timing to compensate for the different fuel mixtures. A typical vehicle operating on gasoline gets 20 miles per gallon. If that same gallon of gasoline was extended with 85% ethanol, the vehicle would travel over 100 miles by the time the original gallon of gasoline was consumed. Consumers can now fuel non-flexible fuel vehicles with E85 with the installation of a FLEX-BOX SMART KIT. The kit, which is EPA approved, continuously monitors a vehicle s engine emissions and adjusts supplemental fuel injection which allows the vehicle to operate at optimal performance. These are exciting times in our industry with EMV, boutique fuels, new UST regulations addressing the integrity of containments and sumps, and most of all the consolidation of c-store owners and the entry of new c-store chains into our geography. Seneca is excited to support our customers business strategies as they continue down progressive paths that will put them ahead of competitors while leading the way in developing and growing options for ethanol and biodiesel blended fuels. Darren Binning Vice President, Fuel Systems Page 6

7 VISIT store.senecaco.com TO PURCHASE FUEL SYSTEMS PARTS ONLINE. Make sure to register to receive alerts of special pricing or private promotions. SENECA S MISSION STATEMENT Seneca Companies will meet or exceed our customers expectations. Our employees are committed to treating customers, suppliers and each other with integrity, honesty and respect. CORE VALUES Seneca Companies is committed to: Listening - Understanding the voice of our customers and employees Continuous Improvement - Change is constant Accountability - Responsibility for our actions Teamwork - Multi-divisional teams are essential Fact Based Decisions - Seeking root cause, not blame Competitive - Drive to succeed Safety - Concern for the well-being of our employees Sustainability and the Environment - Concern for the well-being of the earth CORPORATE HEADQUARTERS LOCATION: 4140 East 14th Street Des Moines, Iowa Davenport, IA Oreana, IL Grandview, MO South Sioux City, NE Denver, CO Tulsa, OK Grand Island, NE Creston, IA Nashville, TN FUEL SYSTEMS GENERAL CONTRACTING ENVIRONMENTAL SERVICES WASTE SOLUTIONS SERVICES REMEDIATION & PROCESS CONTROLS AUTOMOTIVE & FLEET EQUIPMENT Page 7

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