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Presented by Bryan Nudelbacher, U.S. Venture, and Joe Veriha, Veriha Trucking, on October 18, 2012 at the Wisconsin Clean Cities Odyssey Day event hosted by GAIN Clean Fuel.
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The Journey to CNG
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AGENDA
• Introductions and Background
•CNG From the Eyes of a Fleet Owner
• CNG Economics from a Fleet Owner
• The Importance of Partnering with GAIN/U.S. Oil
• Next Steps for GAIN/U.S. Oil
Marinette, WI – Opened August, 2012
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Why Natural Gas?
Large American manufacturing companies are already pursuing
natural gas for their transportation needs…
Why?Secure Economic Benefit:30% - 60% fuel cost savings on a DGE basis
Achieve Sustainability Goals:Significant reductions in Greenhouse Gas Emissions and noise
levels
Take Advantage of North American Fuel:Plentiful domestic supply
Reduced price volatility
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CNG From the Eyes of a Fleet Owner
Current Landscape of the Trucking Industry
Why Veriha Trucking Pursued CNG?
Economics:
The Spread between ULSD & CNG
MPG is Crucial
High Utilization of Trucks is Key
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Cost of a Diesel Gallon Equivalent (DGE)
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CNGDIESEL
NYMEX Commodity $0.48 $3.19
Delivery/Refining $0.20 $0.21
Taxes – Fed & State $0.43 $0.57
Station – Cost & Margin $0.15 $0.15
Station – O&M $0.40 $0.00
Station – Capital $0.46 $0.00
TOTAL DGE PRICE $2.12 $4.12
% of Base Commodity 23% 77%
Financial Perspective
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CNG DIESEL
Cost of New Truck $150,000 $110,000
Annual Miles 120,000 120,000
Miles Per Gallon 5.0 6.5
Fuel Cost/Gallon $2.12 $4.12
Annual Fuel Expense $51,000 $76,000
NET FUEL SAVINGS $25,000
The Partnership: GAIN Clean Fuel & Veriha Trucking
Large Infrastructure ExpenseOver $1MM per site – The economics allow everyone to win, we
must make it happen.
The Change is Significant:Shippers & Haulers
Mechanics & Drivers
Accountants & Lawyers
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“People who work together will win, whether it be against complex football defenses, or the problems of modern society.”
– Vince Lombardi
The GAIN Advantage Program
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We will install turn-key CNG fueling sites, strategically located for your business, covering 100% of the expense, allowing you to save risk-free from day 1.
• 30% – 60% reduction in fuel expense
• Labor savings with strategic location of fueling
sites
• Domestic fuel source creates less volatility
• Pricing options – Fixed or Diesel-Minus
• Redundant design
• 24/7support
• Continuous support to ensure results
The GAIN Clean Fuel Network
Thank You!Bryan Nudelbacher
Business Development ManagerGAIN Clean Fuel [P] 920.243.5856
Joe VerihaOwner
Veriha Trucking, Inc.[P] 715.732.4431
Those who are onthe forefront will win!
The Transition is Easy; With the Right Partner
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