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Fuel Oil News April 2015

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www.fueloilnews.com | FUEL OIL NEWS | AprIL 2015 19 Fuels Some bulk plant operators opt to reduce the storage capacity of a facility because of the price of a commodity and improved transport. "Back in the day, when prices were lower, maybe they would store more and take more risk," said Michael Trask, secretary of Trask-Hall Equipment Co. in Braintree, Mass., and Trask Petroleum Equipment in Providence, R.I. The companies design, build and service bulk plants. "With the volatility of the market, and better transporta- tion some operators are undergoing renovations that result in a reduction of total storage capacity," he said. "We used to build plants where the customer would say he needed 150,000 gallons and then tell us to build capacity for 200,000 gallons." In contrast, Trask said, a recent project called for his com- pany to replace 80,000 gallons of underground, single-wall storage with 30,000 gallons above ground. The 80,000 gallons of storage was never fully utilized, Trask said, estimating that the storage was "maybe half-full all the time." Before making a drastic change of that kind, Trask advises considering a number of factors, including one that the fierce winters of late serve to highlight. "We've had an abundance of snowstorms," Trask said. "Bulk plant operators should consider what transportation difficulties might arise in a season like this. You could have great transportation, but the roads get shut down in some cases. What happens if there's a three-day storm? What volume do you need to keep you in business for three days without deliveries?" Further, "when you're changing from below ground to above ground you need more surface area," Trask pointed out. He said the company that cut its storage to 30,000 gallons above ground still needed about the same surface area as had been taken up by the 80,000 gallons of underground storage. Some bulk plant operators need their storage capacity to be more versatile—to include space for blending biofuel with diesel, to enable them to perform red-dye injection and to add winter additives, Trask said. For an operator that just added 90,000 gallons of storage capacity at a facility in Connecticut, "we added an extra com- partment because they are thinking about doing some bio," Trask said. "Not now. They wanted it to allow for diversifica- tion in the future." A long-range plan executed over the long-term can pay dividends, Trask said, citing as an example a renewal project that began in 1997 and finished some 10 years later. "That was the customer's choice," he said. The plan featured five phases

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