Measurement, Control and Automation Solutions

75 Years

August 1859, Colonel Edwin L. Drake drilled the world’s first oil well in Titusville, Pennsylvania, USA. From that moment, the Oil and Gas industry was born.

There have been few companies that have moved in time with the industry and stood the course of change. With multiple wars, economic depression, technological leaps and globalization, companies that do survive these changes grow to become icons in the industries they serve.

An industry leader for 75 years

Varec is such a company. Over our 75-year history, we have faced challenges at every turn. In the early days, spirit and hard work placed Varec at the forefront of progress. In turn, Varec developed specialized knowledge and experience that was recognized as second to none.

As Varec re-emerges, we are taking stock; to move forward, you must inevitably realize where you have come from. This document takes a brief look at the journey Varec has undertaken and explains our core principles that are as valid today as they were over 75 years ago.

Varec was founded in the greater Los Angeles area, California USA in 1928. In those early days as a pioneer in the oil and gas industry, we designed and manufactured many of the first bulk-storage tank fittings and accessories.

In 1940, we developed a mechanical float and tape level measurement gauge specifically for tank gauging in the oil and gas industry. It was through this development that Varec worked closely with the American Petroleum Institute (API) to write the first API Standard for level measurement of hydrocarbons in above ground storage tanks.

A True Pioneer

1940 The oil and gas industry quickly adopted both the API Standard and the Varec Model 2500 ATG mechanical float and tape gauge as the standard for level measurement and continues to support them today.

The first Varec production facility was outfitted as a complete metal working shop.

Varec was involved in the design and construction of many of the first tank farms as we know them today.

Varec History

By 1950, the Varec brand name had become synonymous with tank gauging. Varec was then supplying a complete tank gauging and vapour control package, including gauges, pipe fittings, breather valves and flame arresters. A number of companies had begun manufacturing copies of the popular Varec products, but the Varec brand was so strong and the copies looked so similar, customers referred to them as “Varec” gauges. This is still true today.

We had experienced tremendous growth and were supporting installed units worldwide, across various markets, such as food and beverage and pharmaceuticals. Our Model 2500 Automatic Tank Gauge (ATG), which was being controlled by a negator motor, had been installed on over 5,000 storage tanks and was also being manufactured under license in Paris and Lancashire (the industrial heart of England). Inventory of the ATG was maintained in New York, Cleveland, Chicago and Houston. Varec had 22 sales representatives throughout the United States, eight in Canada and 17 in various other countries.

Throughout the 1950s, the United States saw tremendous growth in its telecommunications industry and Varec engineers moved in line with this trend by developing the first “Pulse Code System”.

This early digital solution used telephone lines and included an electronic tank gauge transmitter, selector and receiver. It also supported temperature measurement, positive displacement meter readings, pump and valve control and status indication. Varec engineers worked with local telephone companies to install the correct wiring to enable the transmission of level, temperature, pressure and alarm signals to the central control room.

1950 A Pulse Code System was installed for 200 tanks at a refinery in New Jersey, USA. Then, as today, cost and labor reductions justified the installation of a single system. The system also offered intangible benefits, such as fast, accurate and reliable gauging and improved safety.

The design and manufacture of the mechanical tank fittings and accessories have changed very little over the years.

The facility in Compton, California produced tank gauging equipment for over 40 years.

Both U.S. and international oil companies quickly adopted Varec as their tank gauging standard.

Throughout the 1960s, Varec continuously refined its position as a market and industry leader by introducing many new products and accessories.

During the next 20, years Varec’s success attracted other global companies looking to increase their own strength in the instrumentation business. In 1974, Emerson Electric acquired Varec and, in 1986, consolidated its instrument companies under the company name Rosemount.

Operating then as “Varec, a Division of Rosemount”, with production facilities in California and a worldwide sales channel, Varec maintained global recognition and respect for its tank gauging products and services.

Expanding Capabilities

1990 - The TankView® software product was launched as the successor to Varec’s System IV software. With many new features, it was suitable for use on storage tanks across various industries.

1985 - The Varec 6800 series Tank Scanning Unit (TSU) was the next generation device that utilized microprocessor technology for tank gauging integration at the control room.

In the 1960’s, Varec tank gauging transmitters utilized solid-state technology and standardized communications protocols that are still in use today.

Varec History

Up until the 1960s, transmitters and alarm switches utilized relay technology to bring measured values back to the control room.

Throughout the 1990s, the British Whessoe Group had made a number of strategic acquisitions to build and maintain a leadership position in the marine tanker and tank farm inventory management systems markets. It was due to Varec’s notability and a comparable product range that the Whessoe Group of Companies purchased Coggins Syetms in 1990 and Varec in 1992.

The Atlanta-based company, Coggins Systems, founded in 1978, was a software developer, harware manufacturer, systems integrator and turnkey solutions provider. Coggins Systems specialized in developing and manufacturing software, industrial computer systems and intelligent interface products for a number of different markets. The instrumentation and control systems designed for the Strategic Petroleum Reserve Program (SPR) laid the groundwork for the company’s future in the oil and gas industry.

For some time, Varec was also developing products, such as TankView and the Tank Scanning Unit, that complemented Coggins’ strong software and systems capability.

In 1993, Coggins and Varec were again at the forefront of technological developments when Coggins’ FuelsManager® software was released in conjunction with Microsoft’s Windows NT operating system. The following year, 1994, Coggins’ RTU 8130 Remote Terminal Unit was released - a truly open system interface for automatic tank gauging, the first of its kind in the world. With the combination of software, interface devices and tank gauges, these two like-minded companies became the market leaders in ‘open’ systems and solutions with the largest worldwide installed base for tank gauging and inventory management software.

1978 - Coggins Systems was instrumental in the development of the Strategic Petroleum Reserve Program (SPR) with the U.S. Department of Energy.

1985 - Varec released the first DOS-based tank gauging software package to operate on personal computers - System IV.

In the early 1970s, Varec introduced its first servo gauge. A successor, the 6500 (shown above), was launched in the 1980s across multiple industries.

1994 - The release of the RTU 8130 allowed Coggins Systems to offer open systems solutions, integrating all major manufacturers’ tank gauges into a single system.

1993 - Coggins Systems’ FuelsManager® was the first SCADA software product approved by Microsoft® for the Windows® NT operating system.

In the mid-1990s, Varec introduced a brand of radar tank gauges for marine and land-based bulk storage applications in the oil and gas industry.

In 1996, Endress+Hauser - the largest privately owned process instrumentation company - purchased the Whessoe group of companies, including Varec and Coggins Systems.

Endress+Hauser saw this acquisition as a stepping stone into the oil and gas industry, a very different market to the process industries in which it had experience. Each company continued to operate independently, but now had access to new technologies that were integrated into the tank gauging product lines, most notably radar and servo tank gauges.

Industry Experts

Acquired by Varec in 2000, Synergix had been a pioneer of aviation fuels management systems for commercial applications since the mid-1980s.

Varec History

2004 - Technological advances continue to be Varec’s strength as FuelsManager Oil & Gas, Terminal Automation Edition was introduced to the oil & gas industry.

Also in 2000, we acquired the UK-based Synergix, an aviation market leader. Synergix’s software and systems assisted fuel agents and service providers at airports in managing fuel related activities, such as dispatch and into-plane operations. Coggins Systems’ defense aviation expertise combined with Synergix’s commercial aviation offering firmly established Varec as the aviation fuels management market leader.

Today, operating as Varec, we continue our 75-year tradition of working toward true open systems, supplying integrated hardware and software solutions to the customers we serve in the oil and gas, defense and aviation markets, as well as other inventory management related industries. The Varec brand is a registered trademark in 17 countries.

In 2000, Varec was merged with Coggins Systems and the Varec operations in California were relocated to Atlanta, where we still develop and manufacture software, interfaces, tank gauges, transmitters and a full line of accessories. Over the next two years, we added a new line of high accuracy radar tank gauges (RTGs).

We then tested and certified FuelsManager and the RTU 8130 to international approval standards, specifically for high accuracy (custody transfer) applications in the oil and gas industry. This certification included their integration with Varec radar and servo tank gauges, as well as other manufacturers’ certified instruments.

In 2000, Varec’s California facility was merged with Coggins Systems’ Atlanta facility, where all products are manufactured to ISO 9001 standards.

The Varec brand of servo tank gauges and accessories are second to none and are ideally suited for custody transfer and aviation applications.

The Varec brand of radar tank gauges are approved for high accuracy applications by NMI and PTB.

The cornerstone of Varec’s corporate strategy is to provide cost-effective, high quality solutions for long-term system operations. Serving industries that demand precision, our experienced professional and technical staff are dedicated to quality and excellence. In the current business climate, we firmly believe the way forward for our business is to help strengthen our customers’ business - a true partnership.

Our business philosophy is to develop strategic partnerships with the customers we serve. Working together, we can develop product and project standards, control cost and plan future product development that will benefit both partners. We currently have corporate agreements to supply tank gauging products, systems and services for many major oil companies, airlines and defense organizations.

Our Philosophy

Varec products and solutions are recognized and certified by a number of companies and organizations.

Varec Strategic Alliances

PartnersTo increase the flexibility and scope of our systems integration capabilities, Varec has developed “strategic alliances” with industry leaders, major computer and equipment manufacturers and service providers. These partnerships strengthen our ability to offer the best possible systems. Our solutions offering is not restricted to a single manufacturer’s products.

Varec is a Microsoft Certified Partner and is a SAP Certified Integration Partner. These strategic alliances allow support of each other’s technologies and work relationships are built to ensure that an integrated solution best fits your application. This allows you a wider choice and increased flexibility for future system needs.

TechnologyBecause of the rapid rate of technological innovations, customer demands are constantly changing as they strive to attain the optimum in system functionality and facility operations efficiency. We believe a system should be a powerful tool that is unique to each business. As such, we are devoted to working closely with industry standards organizations to take advantage of the advances in technology and changing standards to best meet our customers’ requirements.

Testing and CertificationAccuracy and reliability are crucial to the solutions we provide and to the business relationships we develop. We use only field-proven technologies and have a demonstrated reputation for professional integrity.

Industry standards are adhered to in order to develop instruments and systems inline with new advances in technology.

Active participation in numerous industry organizations assures Varec is informed about changing standards and practices.

Many Varec products are tested and certificated to globally recognized accuracy and safety standards.

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Varec solutions are built on the fundamental concepts of measurement, control and automation—a basic problem-solving approach with unlimited applications. Because every application has unique requirements, we start with a flexible approach that can be readily adapted to industry specific solutions.

Using only field-tested hardware and software, we provide a complete and reliable solution. As both a manufacturer and systems integrator, we are free to pursue the most cost-effective complement of hardware, software and instrumentation, based on objective evaluation. This affords our customers the most complete and economical solution for their particular environment.

For Your Applications

The Varec FuelsManager® suite of industry solutions has been a longtime standard of major oil companies and defense organizations. Today, FuelsManager Aviation is rapidly becoming the system of choice for the aviation industry. Varec’s TankView software provides inventory management capabilities that are suitable for non-oil and gas applications, such as pulp, paper, water, wastewater, food, beverage, pharmaceutical or chemical.

Varec Industry Solutions

Oil and GasVarec is a world leader in measurement, control and automation products and systems that monitor and control bulk liquids during processing, transportation and storage. This includes all aspects of tank farm instrumentation, system design, manufacture, installation, commissioning and servicing of tank gauging, data acquisition and control systems.

1995 - Marathon Oil Company selected FuelsManager and the RTU 8130 for its terminal operations. In 2002, they upgraded all terminals across the U.S. to the latest version of FuelsManager.

1995 - Shell Deer Park Refinery and Chemical Plant in Texas and Shell Geismar Chemical Plant in Louisiana were the first large-scale installations of FuelsManager and the RTU 8130, consisting of hundreds of tanks each.

1994 - The CITGO Petroleum marketing terminal in Doraville, Atlanta was the location of the first FuelsManager and RTU 8130 system installation. It integrated existing Varec mechanical tank gauges and electronic transmitters.

Over our 75-year involvement with the industry, we have provided installations of stand-alone instruments to complex systems in some of the world’s largest facilities. We remain actively involved with many industry organizations, such as the American Petroleum institute (API) and Independent Liquid Terminals Association (ILTA).

AviationWith complete in-house capabilities, from system design, through integration and start-up, we have provided complete performance solutions for commercial aviation fueling requirements. Operators can access data, tracing the movement of fuel at all points along the refueling chain, from its arrival at the fuel farm storage facility, to its delivery on board the waiting aircraft. When analyzed, this data assists in the planning of rapid response to refueling changes and can improve the operating efficiency and productivity of the entire aircraft refueling operation.

In 2003, Varec partnered with Northwest Airlines to install FuelsManager Aviation, a fully automated, aviation fuels management system, for Northwest’s new mid-field terminal at Detroit Metro Airport.

2003 - Varec installed the first solar powered, wireless data capture unit on an unpowered Hydrant cart for recording into-plane fuel transactions.

2000 - Chicago O’Hare International Airport - All fuel movements through the fuel farm and hydrant system are fully managed and controlled using an automated Varec solution.

Varec Industry Solutions

We maintain a multi-disciplined engineering staff for responding to unique design requirements, as well as complete manufacturing and testing facilities. Our service begins with design assistance and continues through to successful operational hand-over and on-going support. Your investment in a FuelsManager system is protected by support services, such as training, documentation and maintenance. We also offer technical assistance and service contracts after system installation.

DefenseDefense operations today demand a leading edge, field-proven and affordable fuel management solution that provides global inventory visibility and accountability.

FuelsManager Defense provides mission critical, commercial-off-the-shelf solutions that are essential to air, ground and naval fueling applications. The FuelsManager Defense suite of software is scalable to suit any size of requirement - from basic inventory accounting to a fully automated, real-time fueling information management and control system.

For this very reason, the U.S. Department of Defense (DoD) chose Varec’s FuelsManager and RTU 8130 solution for implementation in its Fuels Automated Systems (FAS) program on U.S. and associated NATO bases worldwide. FuelsManager software has been installed at approximately 600 DoD military bases.

Building on the long-established Whessoe tank gauging installed base, the British Royal Air Force (RAF) also selected FuelsManager for automation of its key fuels management facilities, like Brize Norton and the Falkland Island RAF bases.

Technological advances continue to be Varec’s strength as FuelsManager Defense and a Tactical Radar Gauge (TRG) were introduced in 2004.

The British RAF utilizes Varec measurement, automation and control solutions at local and remote facilities, including Brize Norton—the largest RAF Station in the UK and the nerve centre of the RAF’s air transport capabilities.

Varec tactical fuels solutions are specifically designed for fuels transaction management in the battlefield, including operations in Afghanistan and Iraq.

Starting in 1996, Varec has worked with the U.S. Defense Energy Support Center (DESC) to develop, deploy and support a worldwide Fuels Automated System for the U.S. Department of Defense (DoD), including formal and on-site training of military personnel.

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Through a complete range of support services, our aim is to optimize the quality and performance of your measurement, control and automation system, allowing you to get the most from your operations, now and in the future. Every team member contributes their specialized knowledge to provide comprehensive support. This flexibility has allowed us to provide solutions for even the most demanding requirements. We have a proven track record for delivering reliable systems for a broad range of applications.

TrainingYou can choose among various training options or a training course can be designed for your specific needs. Each course is adapted to allow individuals to fully comprehend how they can get the best performance out of a specific Varec solution.

Proven Performance

Varec Support Services

Our personnel are dedicated to achieving the highest standards of quality and excellence.

Each classroom is fully equipped with state-of-the-art computer equipment or we are able to provide on-site training at your facility.

We have a wealth of experience with projects that are highly specialized in their technical requirements.

EngineeringIf you need help in planning your system, we will meet with you to discuss your requirements. Facilities vary in size, complexity and growth expectations—all important considerations for designing the best long-term solution. Our diverse experience enhances our practical input to projects, so we may provide you with an accurate appraisal of requirements, schedules and costs.

IntegrationAt Varec, we have an experienced, professional and technical staff that will manage, implement, install and commission your system—whether it is an entirely new system for facilities under construction or an integration of equipment within facilities that are already fully operational. Regardless of your chosen solution, an open systems approach and proven technologies allow our equipment to easily adapt to virtually any other make of products currently installed within your operation.

MaintenanceWe believe in partnership. We value the bond we have with our customers. At Varec, service does not stop with installation. Long-term supportability and maintainability of our products are very important customer concerns. We understand these concerns and have developed support and maintenance programs to build lasting customer relationships.

Technical supportVarec’s technical and application support team provides expert advice and assistance worldwide, 24 hours a day, seven days a week via the telephone or Internet. They will guide you through the problems you are facing, every step of the way.

A worldwide network of local sales, applications and service representatives provide rapid access to service support, ensuring that routine maintenance procedures take place efficiently and on time.

Varec Into the Future

At Varec, improving the effectiveness of your operations is our main goal. To achieve this, we produce precise, cost-effective and tailor-made solutions in the form of instrumentation and systems, but our commitment to you does not stop there...

Our success is based on the knowledge and understanding we have of the customers we serve. We are proud of our performance record, consistently fulfilling expectations and successfully meeting their needs. Varec will always strive to involve our customers in the development of products to ensure that our innovations satisfy even the most demanding and complex requirements.

In the future, we will continue to embrace change as the primary agent of our future growth. This is the spirit that has enabled Varec to stand as a banner in the oil and gas market for over 75 years.

Our Goals

Industries• Oil & Gas• Aviation• Defense• Chemicals and Petrochemicals• Water and Wastewater• Food and Beverage

Capabilities• Measurement• Process Control• Automation• Fuels Management• Software Development & Integration• Inventory Management & Accounting• Environmental Compliance• Wireless Communications• Automated Data Capture• Enterprise Based Applications

Varec, Inc. • 5834 Peachtree Corners East • Norcross (Atlanta), GA 30092 USATel: +1 (770) 447-9202 • Fax: +1 (770) 662-8939

www.varec.com