Petromax Technologies

1. Petromax Technologies A Global Solutions Company

2. Introduction • Petromax Technologies provides cost effective solutions specialized in mobilizing crude waste streams, ease of handling this waste stream, and pre-conditioning crude sludge for optimum separation processing.

3. About Petromax Products • Petromax products are water-based proprietary non-toxic, non-flammable, and environmentally safe formulations designed to remove hydrocarbons from surfaces in such a manner as to not allow the oils to re-attach.

4. Petromax is a combination of specific chemical components and related mechanical applications. • Applications focus on waste handling minimization and rapid sludge mobilization both at the point of application and down stream. • Resource remediation and recovery are evaluated as part of any solution and a Petromax application may be combined with conventional technologies to enhance their processes.

5. Categories of Use • Crude tanks • Waste pits and lagoons • Railcars • Tankers • Surface cleaning • Sand cleaning

6. What is the Mechanism of Action? • The following 8 pictorial slides and video clip will describe what is taking effect during a typical sludge conditioning application. • The net result of this mobilization application is to modify the surface charge and micro encapsulate the crude sludge while creating a colloidal suspension for ease of transportation.

7. Petromax Sludge Conditioning - Mechanism of Action Oil Oil Sand Clay Clay The Problem: Crude oil tank bottoms contain settled inorganic particles which create a very tacky sludge at the bottom of storage tanks. The inorganics and crude are tightly bound by the balance of negative and positive charges in this non-polar environment throughout the sludge. This makes for a very unpumpable waste that is difficult to remove from the tank. In addition, conventional methods for removal, recovery, and disposal are expensive when all costs are taken into consideration. Oil Sand Oil Oil Sand Catalyst Tightly Bound Inorganics in Crude Waste

8. - - - - - - - The Solution: The solution is to break the bond between the inorganic particle and the oil. Once the balance of “charges” have shifted to a negative state, the inorganic particles, the waste oil, and the Petromax solution instantly begin to repel from each other. The Application: This diagram depicts our Petromax Conditioning Process hydro-blasting Petromax product into a crude sludge at 210 bars. This physical application requires close proximity of a spray tip/wand to the inorganics (sand, clay, catalyst fines, etc.) in order to shear off the attached hydrocarbon and apply the negative charge to sand, clay, catalyst, etc. The Effect: The diagram shows a partial cleaning or releasing of the hydrocarbon from the inorganic particulate. This application is designed to create a solids suspended slurry or a very pumpable sludge that will not stick to the interior of hoses or downstream containment once it is removed from a tank. Negatively charged (-) Petromax solution is hydro blasted through the Application Wand Clay Sand - Spray tip - - Sand Clay Negative Charge Applied with Hydro Pressure Catalyst - Sand Crude Coating on Sand, Clay, or Catalyst

9. (+) Negative Magnet The Physical Phenomena: The effect of this repelling/cleaning application would be like two magnets that are brought close to one another and are immediately repelled by like polarities. (-) Negative (-) Magnet (+)

10. The Conditioning Process: The water-based Petromax solution that has been hydro blasted throughout the crude sludge has created a pumpable slurry. The uncharged portion of the heavy crude is essential to suspend the solids within the “conditioned sludge”. This suspension / conditioning process enables the waste stream to be transferred easily from point A to point B. Negatively Charged Petromax throughout the Crude Sludge Catalyst - Negatively charged portion of the sand - - - - Clay Sand - Crude Coating on Sand, Clay, or Catalyst

11. The Result: The conditioning process carries an excess of negative charges throughout the sludge. Although we cannot see this activity with the naked eye, the sludge molecules are actively repelling. At this point, the sludge will very quickly take the path of least resistance as it begins to flow. Visibly we see a very homogeneous pumpable mix much like a thick dark colored milk shake. - FLOW - - - - FLOW - - - - - - Excess Negative charges throughout the sludge - - - - - - - - - - - Excess negative charges attaching to containment FLOW - Pipeline, hose, or downstream containment walls

12. Sludge Conditioning in Action The hand held hydro blasting wand is buried in the sludge as an important part of the Petromax Process Notice the spray tip buried into the sludge during the conditioning process. Shearing the crude from the inorganics must occur as part of the mechanism of action. Because our process occurs rapidly, on average our Petromax Process adds only 15 - 20 % to the waste stream. Production Crude Tank Sludge Conditioning Process

13. Downstream Alternatives: Once the conditioned sludge has been removed from its containment, the suspended solids can be further cleaned for oil recovery and/or solids remediation. If this is the desired result, the Petromax application is repeated to shear the balance of hydrocarbons from the inorganics leaving a visible separation. Floating oil does not mix with our water-based product and the solids drop to the bottom. Recovered oil Petromax Solution Cleaned Solids

14. Oil / Water / Solid separation Production Crude Sludge Sample Tested for Oil Recovery

15. Another look at sludge conditioning

16. What is clean up going to be like?

17. Paraffin and Asphaltene Sludges • Crude sludges of this nature are particularly problematic to handle. • Conventionally, a combination of heat, a diluent, and high volume circulation are used to blend and transfer these types of sludges. Some heavies will remain in a tank and entry will be required for sludge removal prior to inspection. • Petromax utilizes a low volume micro encapsulation application without the use of heat to rapidly mobilize (within seconds) and remove this type of sludge.

18. What are we trying to accomplish with these tough sludges? • Our chemical solution is water-based (does not contain surfactants) and does not mix with the crude. • What we have done is rely upon the hydro blasting pressure and close proximity chemical impact to break up the paraffin or asphalt sludge for the purpose of encapsulation.

19. Heat is not necessary for this mobilization. • Since there are variations from one sludge to the next representative samples are tested to determine a proper formulation.

20. Video of a paraffin sludge sample being tested with Petromax

21. Heavy solids sludge mobilization • The next video shows a Petromax sludge removal application on a free water knockout tank. • The solids content is very high (over 70%) with very little hydrocarbons in the mix.

22. A heavy solids sludge mobilization Petromax application

23. Recovery or Disposal? • One opportunity for recovery is to enhance a centrifuge operation.  That is to say, the crude sludge that has been mobilized with a Petromax application will have already started the oil, water, solids separation process and will continue to do so in a mix tank just prior to the centrifuge.  • The centrifuge process will now be much more efficient and will yield cleaner oil and a drier cake.

24. The Petromax conditioned crude sludge that will be held in secondary containment (awaiting the centrifuge process) will remain mobile.  • The footprint of such an operation will be smaller since the waste stream has been significantly minimized compared to a conventional waste transfer process.

25. Centrifuge Sludge Testing • Tests completed by US Filter showed that Petromax conditioned sludge did not require the addition of polymers during a dewatering process. This would allow the dewatering technician to more easily dial-in his process, as well as, reduce the dewatering costs. • The net results, as tested by US Filter on their dewatering equipment, yielded a significantly drier cake. Instead of the usual 30% - 40% liquid content on the filter test, the conditioned sludge yielded a result of 17.5%.

26. Coker Unit Sludge Recovery • Within an oil refinery operation T&D costs for refinery wastes are high. • Conventional methods of sludge removal and processing are both manpower and equipment intensive. • These methods create costly repetitive and laborious activities.

27. Coker continued: • When conventional methods are utilized, the sludge literally has to be double handled at a cost significantly greater than the original removal cost when conventional means of tank cleaning are utilized. Petromax advantages: • Petromax Sludge Conditioning is a waste minimization process without thecost of dewatering. Far fewer temporary storage tanks are required.

28. Coker conclusion: • Petromax conditioned sludge remains suspended and pumpable throughout the Coker injection transfer schedule. Time consuming (and additional waste generating) vacuum truck washouts are all but eliminated. • The conditioning process allows the Operations tank to be turned over faster and in an oil free condition.

29. Sand Cleaning/Remediation • The next slide shows a before and after sample testing of California beach sand that was at a UNOCAL production site. • The removal of hydrocarbons from the soil was accomplished in less than a minute by hydro blasting a Petromax water-based formula at ambient temperature.

30. Beach Sand Remediation Guadalupe Sand Before Guadalupe Sand After Associated Laboratories Certified Results: Contaminated Soil – 4,620 ppm TPH Cleaned Soil – 190 ppm TPH Wash Water Fines – 8,790 ppm TPH Representative soil samples were obtained from Unocal at the Guadalupe Beach, California remediation site.

31. Sand Cleaning/Oil Recovery • The following slides are from ongoing work related to the oil sands and tar sands industry. • The objective is to utilized a Petromax cold water process to remove bitumen in both water-wet and oil-wet conditions.

32. A Environmental Breakthrough: • Further, such a Petromax sand cleaning/oil recovery process will not create stable emulsified tailings. • Recycling our chemical (as much as possible) in such a large application is part of the solution. • Water recovery and energy savings becomes a huge plus over the current process in Alberta, Canada.

33. The oil sands are water-wet. Syncrude Oil Sands Production BEFORE

34. Syncrude Oil Sands Production AFTER

35. Utah Tar Sand Test Sample Before

36. Bitumen Removal from Utah Tar Sands (oil-wet) After

37. Pipeline Drag Reduction Currently Petromax Technologies is testing pipeline drag reduction applications in Southern California, U.S.A.

38. Petromax Technologies A Global Solutions Company www.petromaxtechnologies.com