Mission StatementMission Statement

Custom Engineered Lubricants Custom Engineered Lubricants Utilizing Premium Base Stocks Utilizing Premium Base Stocks and Specific Additives Creating and Specific Additives Creating Superior Lubrication TechnologySuperior Lubrication Technology

Working With the OEM to Meet Working With the OEM to Meet the Needs of Today’s Complex the Needs of Today’s Complex EquipmentEquipment

Assess Our Customers Needs and Assess Our Customers Needs and Requirements for Customized Requirements for Customized LubricantsLubricants

C & C Oil CompanyC & C Oil Company

Over 2 Decades of Lubrication Over 2 Decades of Lubrication ExperienceExperience

World Class Production FacilityWorld Class Production Facility

Uncompromised QualityUncompromised Quality

Readily Accessible Service for Readily Accessible Service for Large & Small CustomersLarge & Small Customers

Complete Customer SatisfactionComplete Customer Satisfaction

Gas Turbine RequirementsGas Turbine Requirements

SOUTHERN COMPANYSOUTHERN COMPANY

Equipment EfficiencyEquipment Efficiency

Investment ProtectionInvestment Protection

Reduce Maintenance CostsReduce Maintenance Costs

OxidationOxidation

Minimize DowntimeMinimize Downtime

Consolidate InventoryConsolidate Inventory

Lower Energy CostsLower Energy Costs

Steam Turbine RequirementsSteam Turbine Requirements

SOUTHERN COMPANYSOUTHERN COMPANY

Equipment EfficiencyEquipment Efficiency

Investment ProtectionInvestment Protection

Reduce Maintenance CostsReduce Maintenance Costs

OxidationOxidation

Minimize DowntimeMinimize Downtime

Consolidate InventoryConsolidate Inventory

Lower Energy CostsLower Energy Costs

Turbine Oil HistoryTurbine Oil History

00

20002000

40004000

60006000

80008000

40’s & 50’s 60’s & 70’s 80’s & 90’s NextGeneration

OxidationOxidationLife in Hrs.Life in Hrs.

The opportunity for The opportunity for vastly superior vastly superior technology in NOWtechnology in NOW

•Simple mineralSimple mineral oils oils

•Earliest Earliest chemicalchemical oxidation oxidation inhibitors inhibitors

•No extremeNo extreme pressure/ pressure/ anti-wear anti-wear

•Solvent refinedSolvent refined oils oils

•Improved Improved oxidationoxidation inhibitors inhibitors

•No EP/AW No EP/AW

•Hydro- Hydro- processed processed oils available oils available

•Basic Basic oxidation oxidation inhibitors inhibitors

•Ashless Ashless EP/AWEP/AW available available

•Further hydro-Further hydro- processed oils processed oils

•Advanced anti-Advanced anti- oxidants oxidants

•2nd generation2nd generation ashless EP/AW ashless EP/AW

1000010000

Solvent RefinedSolvent Refined

HydroprocessedHydroprocessed

SeverelySeverelyHydro processedHydro processed

SaturateSaturate SulfurSulfurViscosityViscosity

IndexIndex

<90% >0.03% 90-100<90% >0.03% 90-100

>90% <0.03% 95-105>90% <0.03% 95-105

>90% <0.03% 120+>90% <0.03% 120+

ConclusionConclusion Cleaner, Clearer and BetterCleaner, Clearer and Better

1970’s -1970’s -

1980’s -1980’s -

1990’s -1990’s -

Petroleum Base StockPetroleum Base Stock

Synthetic Base StockSynthetic Base Stock

(Polyalphaolefins)(Polyalphaolefins)

Optimal Base Fluid Optimal Base Fluid PerformancePerformance - No Aromatics- No Aromatics - No Wax - No Wax - No Sulfur - No Sulfur

* In thermal & oxidation tests* In thermal & oxidation tests with or without additives with or without additives

Better thanBetter thanPetroleum Base Petroleum Base

Stock*Stock*

R&OR&OR&OR&O

AWAWAWAW

EPEPEPEP

Rust and Oxidation InhibitedRust and Oxidation Inhibited,,No Load Carrying,No Load Carrying,0.2 or Lower Neutralization Number0.2 or Lower Neutralization Number

Anti-WearAnti-Wear, Added for Film Strength, Utilizes, Added for Film Strength, UtilizesOrgano Metallic Compounds, i.e. Zinc,Organo Metallic Compounds, i.e. Zinc,0.25 and Higher Neutralization Number0.25 and Higher Neutralization Number

Extreme PressureExtreme Pressure, Added for Load Carrying , Added for Load Carrying Properties Normally Utilizes Sulfur and Phosphorus Properties Normally Utilizes Sulfur and Phosphorus Chemistry, Chemistry, 0.5 Plus Neutralization Number0.5 Plus Neutralization Number

Types of Industrial Lubricant AdditivesTypes of Industrial Lubricant Additives

How Additives Affect How Additives Affect Neutralization Neutralization NumbersNumbers

NeutralizationNeutralization

Historically, Historically, Neutralization # (Acid Neutralization # (Acid Value) Limitations Value) Limitations Prohibit the Use of Prohibit the Use of AWAW & & EPEP Additives in Turbine Additives in Turbine ApplicationsApplications

AWAW && EPEP Systems Are Systems Are Typically Considered to Typically Considered to be Negative on Thermal be Negative on Thermal & Oxidative Stability& Oxidative Stability

Additive Co-Existence?Additive Co-Existence?

Generic turbine oils Generic turbine oils are notare notgiving optimal performancegiving optimal performancein today’s advanced systems.in today’s advanced systems.

Until nowUntil now, generic turbine oils could not utilize the , generic turbine oils could not utilize the benefits of anti-wear and extreme pressure benefits of anti-wear and extreme pressure additives additives in addition toin addition to rust & oxidation rust & oxidation inhibitors, while maintaining low neutralization inhibitors, while maintaining low neutralization number requirements.number requirements.

C & C PhilosophyC & C Philosophy

+ =Petroleum

orSynthetic

Base Stock

Petroleumor

SyntheticBase Stock

Optimized Customer-

SpecificAdditives

Optimized Customer-

SpecificAdditives

C & C Oil Company

““SSuccessful lubrication uccessful lubrication depends on providing a depends on providing a lubricant with the lubricant with the proper additives and proper additives and viscosity matched to the viscosity matched to the specific application.”specific application.”

Research & Development Research & Development at at Other Major Oil Other Major Oil CompaniesCompanies is is Focused on Focused on Passenger Car TechnologyPassenger Car Technology

99.99% of Research 99.99% of Research Dollars EndsDollars EndsUp in the Parking LotUp in the Parking Lot

Additive CompaniesAdditive Companies Are Are Highly Highly Focused on Focused on Automotive IndustryAutomotive Industry

The Small Volume of The Small Volume of Business Compared to the Business Compared to the Automotive Industry has Automotive Industry has made R & D in the Turbine made R & D in the Turbine Oil Industry minisculeOil Industry miniscule

Research & DevelopmentResearch & Development

At C&C Oil Company, At C&C Oil Company, Our Our Research & Research & Development is Development is Specific to Our Specific to Our Customers’ Turbines Customers’ Turbines and Supporting and Supporting EquipmentEquipment

We are Dedicated to We are Dedicated to the Power the Power Generation IndustryGeneration Industry

We Focus on We Focus on Industrial Industrial Lubricants, Turbine Lubricants, Turbine Oils, Circulation and Oils, Circulation and Gear OilsGear Oils

C & C Oil CompanyC & C Oil Company

OEM Spec’s Establish OEM Spec’s Establish MinimumMinimum(Sub-Optimum) Standards(Sub-Optimum) Standards

fromfrom C & C Oil Company C & C Oil Company Far ExceedsFar Exceeds

OEM Minimum OEM Minimum SpecificationsSpecifications

THETHE

Optimized Optimized Neutralization Neutralization Number for Longer Number for Longer LifeLife

Provides Provides AWAW & & EPEP PropertiesProperties

Use Use OneOne Product Product Instead of TwoInstead of Two

C & C Oil CompanyC & C Oil CompanyTheThe

Our Turbine Oil Far Our Turbine Oil Far Exceeds OEM Oxidation Exceeds OEM Oxidation RequirementsRequirements

C&C Oil Does In-Depth C&C Oil Does In-Depth Testing for All Critical Testing for All Critical IssuesIssues

Subjected to More Subjected to More Rigorous Testing than Rigorous Testing than OEMOEM - Cincinnati Machine - Cincinnati Machine TestingTesting

Reduce CokingReduce Coking

Testing Oxidative & Thermal StabilityTesting Oxidative & Thermal Stability

Increased Load Increased Load Carrying Carrying PropertiesProperties

Improved Wear Improved Wear CharacteristicsCharacteristics - FZG-ASTM D - FZG-ASTM D 51825182 - ASTM D 4172 - ASTM D 4172 - ASTM D 2783 - ASTM D 2783

In Depth Anti-Wear AnalysisIn Depth Anti-Wear Analysis

Denison HF-O SpecificationDenison HF-O Specification - Perform with the - Perform with the presencepresence of Moisture (ASTM D of Moisture (ASTM D 2619)2619) - Resists Acid and Sludge - Resists Acid and Sludge Formation (ASTM D Formation (ASTM D 4310)4310)

Denison Filtration Denison Filtration ProcedureProcedure - Filterability - Filterability (Denison # TP-02100-A) (Denison # TP-02100-A)

Hydrolytic Stability TestingHydrolytic Stability Testing

All Turbine Oils All Turbine Oils Must Pass Basic Must Pass Basic Tests for Rust and Tests for Rust and CorrosionCorrosion

We Address:We Address: - Chemistry - Chemistry - Contaminants - Contaminants - Potential for - Potential for BacterialBacterial Corrosion Corrosion

Rust & Corrosion ServiceRust & Corrosion Service

PASS

FAIL

Typical Gas Turbine OEM SpecificationsTypical Gas Turbine OEM Specifications

TestsTests ManufacturerManufacturerC & C’sC & C’s

““New Millennium”New Millennium”

OxidationOxidation - ASTM D943- ASTM D943 - ASTM D2272 - ASTM D2272

FoamFoam - ASTM D892 - ASTM D892

Load CarryingLoad Carrying - FZG - ASTM D 5182 - FZG - ASTM D 5182 Load Stage W/O Failure Load Stage W/O Failure

NeutralizationNeutralization - ASTM D974 - ASTM D974

Air ReleaseAir Release - ASTM D3472 - ASTM D3472

2,0002,000>300>300

6,000+6,000+1200+1200+

450/0, 50/0, 450/0450/0, 50/0, 450/0 0/0, 0/0, 10/00/0, 0/0, 10/0

77 99

ReportReport <0.20<0.20

< 5 min.< 5 min. < 2 min.< 2 min.

Typical Steam Turbine OEM SpecificationsTypical Steam Turbine OEM Specifications

TestsTests ManufacturerManufacturerC & C’sC & C’s

““New Millennium”New Millennium”

OxidationOxidation - ASTM D943- ASTM D943 - ASTM D2272 - ASTM D2272

FoamFoam - ASTM D892 - ASTM D892

Load CarryingLoad Carrying - FZG - ASTM D 5182 - FZG - ASTM D 5182 Load Stage W/O Failure Load Stage W/O Failure

NeutralizationNeutralization - ASTM D974 - ASTM D974

Air ReleaseAir Release - ASTM D3472 - ASTM D3472

3,0003,000>500>500

6,000+6,000+

1800+1800+

50/0, 50/0, 50/050/0, 50/0, 50/0 10/0, 10/0, 10/010/0, 10/0, 10/0

77 99

0.20 Max0.20 Max <0.20<0.20

< 5 min.< 5 min. < 2 min.< 2 min.

Optimized Lubricants for Our CustomersOptimized Lubricants for Our Customers

100% Greater100% Greater

Improved Operation, AdditionalImproved Operation, AdditionalPerformance CharacteristicsPerformance Characteristics

Substantially Greater LoadSubstantially Greater LoadCarrying CapacityCarrying Capacity

R&OR&OR&OR&O

AWAWAWAW

EPEPEPEP

Examples ofExamples ofC & C CommitmentC & C Commitment

to Optimized Lubrication to Optimized Lubrication for the for the

Power Generation Power Generation IndustryIndustry

Examples ofExamples ofC & C CommitmentC & C Commitment

to Optimized Lubrication to Optimized Lubrication for the for the

Power Generation Power Generation IndustryIndustry

Electric Power Utility ABB / C-E Electric Power Utility ABB / C-E PulverizerPulverizer

Field Trial Results:Field Trial Results:

FluidFluid

FrictionFrictionReductionReduction

(Amperage)(Amperage)

AverageAverageOperatingOperating

Temp.Temp.OutputOutput

(hp Change)(hp Change)

Mineral-Based Mineral-Based ISO-220 Gear OilISO-220 Gear Oil

Energy-Efficient C&C Energy-Efficient C&C Duration EP-220Duration EP-220

Results Using C&C

7575

7171

5.3%Reduction

52.552.5

48.848.8

7%Reduction

418 hp418 hp

395 hp395 hp

23 hpImprovement

Electric Power Utility B&W PulverizerElectric Power Utility B&W Pulverizer

FluidFluid

CoalCoalProcessingProcessing

EnergyEnergykWh/TonkWh/Ton

TotalTotalEnergyEnergyper Millper Mill

kWh/kWh/

EnergyEnergySavingsSavingsper Millper Mill

kWhkWh

Mineral-Based Mineral-Based ISO-460 Gear ISO-460 Gear OilOil

Energy-Efficient Energy-Efficient C&C Duration C&C Duration EP-460EP-460

12.8912.89

12.1712.17

541.38541.38

511.14511.14

--

260,000260,000

EnergyEnergyper Millper Millper Yearper Year

kWh x 10kWh x 1066

4.554.55

4.294.29

AnnualAnnualEnergyEnergy

CostCostSavingsSavings

YearYear

$6,500$6,500

----

Equates to ±9.5% Additional Revenue/Mill/Year

Field Trial Results:Field Trial Results:

Plant MillerPlant MillerAlabama Power, Quinton, ALAlabama Power, Quinton, AL

Actual $ SavingsActual $ Savings

19901990 19941994 19981998 20022002

$ in Millions$ in Millions

Annual Annual Energy Energy

Costs to run Costs to run 28 B&W 28 B&W

Pulverizes Pulverizes

55

$3,185,000

$3,003,000

Initial Use ofDuration EP-46044

33

22

11

Exceeds Basic Industry Exceeds Basic Industry SpecificationsSpecifications

Extends Oxidation Life & Service Extends Oxidation Life & Service IntervalsIntervals

Longer Bearing Life With AW & Longer Bearing Life With AW & Load Load Carrying FeaturesCarrying Features

Superior Performance When Superior Performance When ExposedExposedto Moistureto Moisture

Enhanced Filterability Under BothEnhanced Filterability Under BothWet & Dry ConditionsWet & Dry Conditions

Combats CokingCombats Coking

C&C OIL COMPANYC&C OIL COMPANY