Document N281RdzXB3X4wB2eqgR4ZL07y

EPA Logistics Overview May 9, 2017 Fred Walas, PE Marathon Petroleum Company lp 17cv01906 Sierra Club v. EPA ED_001523_00005597-00001 I Marathon marThon/ Petroleum Company lp 17cv01906 Sierra Club v. EPA ED_001523_00005597-00002 MPC's Fully Integrated Downstream System Refining and Marketing Seven-plant refining system with ~1.8 MMBPCD capacity One biodiesel facility and interest in three ethanol facilities One of the largest wholesale suppliers in our market area One of the largest producers of asphalt in the U.S. ~5,500 Marathon Brand retail outlets across 19 states Owns/operates 20 asphalt/light product terminals, while utilizing third-party terminals at 121 light product and two asphalt locations 2,074 owned/leased railcars, 163 owned transport trucks Speedway ~2,730 locations in 21 states Second-largest U.S. owned/operated c-store chain Midstream (including MPLX) Owns, leases or has interest in ~10,800 miles of crude and refined product pipelines 62 light product terminals with ~24 million barrels of storage capacity 18 owned inland waterway towboats more than 200 owned and 18 leased barges Owns/operates over 5,600 miles of gas gathering and NGL pipelines Owns/operates 55 gas processing plants, 14 NGLfractionation facilities and two condensate stabilization facilities Marketing Area MPC Refineries As of March 1, 2017 Ught Product Terminals IPC Owned and Part-owned ^tird Party Asphalt/Heavy Oil Terminals IPC Owned Water Supplied Terminals Coastal Inland Pipelines MPC Owned & Operated MPC Interest: Operated by MPC MPC Interest: Operated by Others Pipelines Used by MPC MARATHON 17cv01906 Sierra Club v. EPA Renewable Fuels ithanol Facility .odiesel Facility ENffiGY LOGISTICS <PLX Terminals: vned and Part-owned Jnk Farms Vest Complex MPLX Pipelines: Owned & Operated Cavern MPLX Interest Pipelines: "Operated by Others Barge Dock WH ED_001523_00005597-00003 Rated Crude Oil Refining Capacity System capacity: 1,817,000 BPCD 17cv01906 Sierra Club v. EPA ED_001523_00005597-00004 Renewable Fuels Corn Ethanol Plants 67% equity interest* in Greenville, Ohio - 110 MM gallon/year capacity 61.1% equity interest in Clymers, Indiana - 110 MM gallon/year capacity 44.7% equity interest in Albion, Michigan 55 MM gallon/year capacity The Andersons Inc. operates the plants and provides all the facility services |||||||||||i||M ... " li|ll Biodiesel Refinery 100% owner in Cincinnati, Ohio 60 MM gallon/year capacity Generates ~90 MM RINs per year Supplied by both truck and rail, with river access in close proximity *Direct and indirect M MARATHON m 17cv01906 Sierra Club v. EPA 4 .. ' k ED_001523_00005597-00005 Extensive Retail Network As of Dec. 31, 2016 17cv01906 Sierra Club v. EPA .. 1 NJ. I 72 R.l. i 20 Speedway Largest company-owned and operated c-store chain east of the Mississippi ~2,730 locations in 21 states Marathon Brand ~5,500 branded locations One of the largest asphalt marketers in the country Quality supplier into wholesale and secondary product markets ED_001523_00005597-00006 Crude Oil Supply and Logistics 17cv01906 Sierra Club v. EPA ED_001523_00005597-00007 Shale Boom Result - Key U.S. & Canadian Pipelines Trans Mountain Trans Mountain Bi Expansion Sarnia farm Mustang WMd Flanagan South W I MPC Refineries Pre-2010 Pipeline 2010-2016 - Major Project / New Pipeline 2017+ Planned Pipeline Wood River /i 'Memphis fr :,.Zydayou Bridge Port Arthur / Beaumont / Mede Houston 17cv01906 Sierra Club v. EPA ED_001523_00005597-00008 Crude Siate Optimization Factors Considered Market Price Dynamics Bienl/WTI ARB Market Structure Crude Differentials Product Prices Refinery Constraints Configuration Turnarounds Unit Problems Pipeline Constraints Proration Shipment History Hydrotest/Tool Runs Transportation Costs 5 Pipeline Tariffs Tanker Freight Barge Costs Transit Time Product Sales Constraints Time Value of Money ^MARATHON/ 17cv01906 Sierra Club v. EPA Iterative Process Trading Scheduling Refining Marketing ouar - uiuue OU Analysis ED_001523_00005597-00009 Trivia Questions What were the top 5 oil producing countries in the world in 2016? 1. Russia (10.6 MMBD) 2. Saudi Arabia (10.5 MMBD) 3. United States (8.9 MMBD) 4. Iraq (4.5 MMBD) 5. Iran (4.0 MMBD) What is the projected top 5 oil producing countries in 2020? 6. Saudi Arabia (10.5 MMBD) 7. Russia (10.4 MMBD) 8. United States (10.2 MMBD) 9. Iraq (4.5 MMBD) 10. China (4.1 MMBD) Source: EIA, IEA 17cv01906 Sierra Club v. EPA SD&P - Crude Oil Analysis ED_001523_00005597-00010 Crude Oil Flow Changes (2000 vs. 2017 vs. 2025E) 2000 - % Seaway Permian 2017 % % % Permian/ Eagle Ford Seaway O) MARATHON 17cv01906 Sierra Club v. EPA oUtica Foreign Imports via Gulf Coast Foreign Imports via Gulf Coast 2025E % Q> % . Seaway KeystoneXL O Utica Permian/ Eagle Ford Foreign Imports via Gulf Coast ED_001523_00005597-00011 Product Supply and Logistics 17cv01906 Sierra Club v. EPA ED_001523_00005597-00012 U.S. Refineries and Product Pipelines Refinery Crude Capacity in MBPD based on O&GJ Legend Idle Refineries Speciality Refineries Intermediate Refinery Asphalt Refineries * US Refineries MPL Product Pipelines US Product Pipelines PADD ill PADD II PADDI 17cv01906 Sierra Club v. EPA ED_001523_00005597-00013 Product Movement Information Mode of Transport Buckeye Pipeline Explorer Pipeline Enterprise Pipeline Barge Est. Capacity MBPD 100 640 380 Varies Cycle Transit Time in Days Time in Minimum Days 7 8.5 (Linden, NJ to Neville Island PA) 10 9 (GC to Wood River) 4 (Wood River to Chicago) 10 23 (GC to Indy) 24 (GC to Griffith) 25 (GC to Lebanon) N/A 16 (GC to Louisville) Transit Time in Days Maximum Varies 25 (GC to Wood River) 24 (Wood River to Chicago) Varies 18 17cv01906 Sierra Club v. EPA ED_001523_00005597-00014 Major Midwest Pipelines and Supply Sources Is there any overlap? 17cv01906 Sierra Club v. EPA vvnai aoes me overlap mean? Need to optimize! ED_001523_00005597-00015 Major Midwest Pipelines and Supply Sources Is there any overlap? 17cv01906 Sierra Club v. EPA ED_001523_00005597-00016 Major Midwest Pipelines and Supply Sources Is there any overlap? 17cv01906 Sierra Club v. EPA ED_001523_00005597-00017 Major Midwest Pipelines and Supply Sources Is there any overlap? 17cv01906 Sierra Club v. EPA ED_001523_00005597-00018 Major Midwest Pipelines and Supply Sources Is there any overlap? 17cv01906 Sierra Club v. EPA ED_001523_00005597-00019 Major Midwest Pipelines and Supply Sources Is there any overlap? MARATHON 17cv01906 Sierra Club v. EPA What does the overlap mean? Need to optimize! ED_001523_00005597-00020 Overview of the Balance Material Balance: Supply = Demand Refinery Production Purchases Inventory Draws Shipments from Gulf Coast 17cv01906 Sierra Club v. EPA Sales Inventory Builds Shipments to Gulf Coast ED_001523_00005597-00021 Major Midwest Pipelines and Supply Sources Is there any overlap? MARATHON 17cv01906 Sierra Club v. EPA What does the overlap mean? Need to optimize! ED_001523_00005597-00022