Document gK9zM8aMeqeJ6kdE5oLBbvzQ

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 5 77 WEST JACKSON BOULEVARD CHICAGO, IL 60604-3590 DEC 2 8 2018 REPLY TO THE ATTENTION OF CERTIFIED MAIL RETURN RECEIPT REQUESTED Tom Gaal, Terminal Manager Zenith Energy Terminals 250 Mahoning Ave. Cleveland, Ohio 44113 Re: Finding ofViolation Zenith Energy Terminals Cleveland, Ohio Dear Ms. Stevens: The U.S. Environmental Protection Agency is issuing the enclosed Finding of Violation (FOV) to Zenith Energy Terminals (Zenith or You) under Section I 13(a)(3) ofthe Clean Air Act, 42 U.S.C. 7413(a)(3). We find that you are violating the New Source Performance Standards for Storage Vessels for Petrolewn Liquids, 40 C.F.R. Part 60, Subpm1 Kb at your Cleveland, Ohio facility . Section 113 of the Clean Air Act gives us several enforcement options. These options include issuing an administrative compliance order, issuing an administrative penalty order and bringing a judicial civil or criminal action. We are offering you an opportunity to confer with us about the violations alleged in the POV. The conference will give you an opp011unity to present infom1ation on the specific findings of violation, any efforts you have taken to comply and the steps you will take to prevent future violations. In addition, in order to make the confer ence more productive, we encourage you to submit to us information responsive to the FOV prior to the conference date. Please plan for your facility's technical and management personnel to attend the conference to discuss compliance measures and commitments. You may have an attorney represent you at this conference. The EPA contact in this matter is Luke Hullinger. You may call him at (312) 886-3011 to request a conference. You should make the request within IO calendar days following receipt of this letter. We should hold any conference within 30 calendar days following receipt of this letter. Sincerely, iv EdwardNam Director Air and Radiation Division Enclosure cc: Bob Hodanbosi, Chief, Division of Air Pollution, Ohio EPA James Kavalec, Environmental Manager, Division of Air Pollution, Ohio EPA David Hearne, Division of Air Quality, Cleveland Department of Public Health UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGIONS IN THE MATTER OF: Zenith Energy Terminals Cleveland, Ohio Proceedings Pursuant to Section 113(a)(3) of the Clean Air Act, 42 U.S.C. 7413(a)(3) ) ) ) FINDING OF VIOLATION ) ) EPA-5-18-OH-03 ) ) ) ) FINDING OF VIOLATION The U.S. Enviromnental Protection Agency is issuing this Finding of Violation under Section 113(a)(3) of the Clean Air Act (CAA), 42 U.S.C. 7413(a)(3). EPA finds that Zenith Energy Terminals (Zenith) is violating the New Source Performance Standards (NSPS), as follows: Statutory and Regulatory Background New Source Performance Standards 1. Section 1ll(b) of the Act, 42 U.S.C. 741l(b), requires EPA to publish a list of categories of stationary sources and, within a year after the inclusion of a category of stationary sources in the list, to publish proposed regulations establishing federal standards of performance for new sources within the source category. These emission standards are known as the NSPS. EPA codified these standards at 40 C.F.R. Part 60. 2. 40 C.F.R. Part 60, Subpart A (NSPS Subpart A), contains the General Provisions for the NSPS. 3. 40 C.F.R. 60.ll(d) of the NSPS General Provisions states that at all times, including periods of startup, shutdown, and malfunction, owners and operators shall, to the extent practicable, maintain and operate any affected facility including associated air pollution control equipment in a manner consistent with good air pollution control practice for .. .. . . m1111m1zmg em1ss1ons. NSPS for Storage Vessels for Petroleum Liquids for Which Construction, Reconstruction, or Modification Commenced After July 23, 1984 4. On April 8, 1987, EPA promulgated the Standards of Performance for Storage Vessels for Petroleum Liquids for Which Construction, Reconstruction, or Modification Commenced After July 23, 1984 at 40 C.F.R. Paii 60, Subpart Kb (hereinafter "Subpart Kb"). See 52 Fed. Reg. 11429 (Apr. 8, 1988), and 40 C.F.R. 60.1 !0b- 60.117b. 5. Subpart Kb at 40 C.F.R. 60.111 b defines "storage vessel" to mean each tank, reservoir, or container used for the storage of volatile organic liquids (VOLs) (with exceptions that are not applicable here). 6. Subpart Kb applies to each storage tank with a capacity greater than or equal to 75 cubic 111eters (1n3) that is used to store VOLs for w11lch construction, reconstruction, or modification is commenced after July 23, 1984. 40 C.F.R. 60.1 l0b(a). 7. Subpart Kb at 40 C.F.R. 60. l 12b(a) specifies the volatile organic compound (VOC) standard for storage tanks with a design capacity greater than or equal to 151 m3, containing a VOL that, as stored, has a maximum true vapor pressure equal to or greater than 5.2 kilopascals (kPa) but less than 76.6 kPa. 8. To comply with 40 C.F.R. 60.112b(a), subject storage tanks must be equipped with a fixed roof in combination with an internal floating roof, and, as such, are required to meet the specifications identified under 40 C.F.R. 60.112b(a)(l ). 9. Pursuant 40 C.F.R. 60.112b(a)(l)(ii), tanks with a fixed roof used in combination with an internal floating roof must be equipped with one of three types of closure devices between the wall of the storage vessel and the edge of the internal floating roof. Among the options for closure devices the regulation provides that two seals may be mounted above one another so that each seal forms a continuous closure that completely covers the space between the wall of the storage vessel and the edge of the internal floating roof. See 40 C.F.R. 60.112b(a)(l)(ii)(B). 10. Pursuant to 40 C.F.R. 60.l 12b(a)(l)(vi), tanks with fixed roofs used in combination with an internal floating roof must have rim space vents equipped with a gasket and are to be set to open only when the internal floating roof is not floating or at the manufacturer's recommended setting. Findings and Violations 11. Zenith owns and operates a bulk petroleum terminal at 250 Mahoning Avenue, Cleveland, Ohio. 12. Zenith owns numerous storage tanks, including three internal floating roof storage tanks labeled Tank 120, Tank 121, and Tank 122 (or T013, T014, and T015, respectively, in the facility's Ohio Environmental Protection Agency Permit-to-Install and Operate) that store gasoline. 13. Tank 120, Tank 121, and Tank 122 were converted into floating roof storage tanks in March 2001, September 1986, and September 1986, respectively, and were therefore modified after July 23, 1984. These three tanks also have a design capacity greater than 151 m3 and are used to store gasoline, a VOL that, as stored, has a maximum true vapor 2 pressure greater than or equal to 5.2 kiloPascals (kPa) but less than 76.6 kPa. Therefore, Tank 120, Tank 121, and Tank 122 are each subject to the requirements of Subpart Kb. 14. Tank 120, Tanlc 121, and Tank 122 each utilize two seals intended to fonn a continuous closure between the wall of each tank and the edge of the tank's internal floating roof. 15. During the Augnst 2018 Inspection, facility personnel informed the EPA inspectors that Tank 120, Tank 121, and Tank 122 were storing gasoline. An EPA inspector then recorded forward looking infrared radiometer (FLIR) video of emissions leaking from the rim vents of Tank 120, Tank 121, and Tank 122 at the time the internal roof in each tank was floating because gasoline was stored inside the tanks. 16. Zenith violated 40 C.F.R. 60. l 12b(a)(l )(ii)(B) by failing to equip the internal roofs of Tank 120, Tank 121, and Tank 122 with two seals that form a continnous closure around the circumference of the tank, and/or Zenith violated 40 C.F.R. 60.l l2b(a)(l)(vi) by setting the rim vent gasket of Tanlc 120, Tank 121, and Tank 122 to open when the internal roof was floating. 17. By failing to operate and maintain the facility's air pollution control system in accordance with good air pollution control practices, Zenith violated and continues to violate 40 C.F.R. 60.1 l(d). Environmental Impact of Violations 18. VOCs, along with nitrogen oxides (NOx), are major precursors in the formation of atmospheric and ground-level ozone, a photochemical oxidant associated with a nwnber of detrimental health effects, including birth defects and cancer, and environmental and ecological effects. In the presence of snnlight, and influenced by a variety of meteorological conditions, VOCs and hazardous air pollutants react with oxygen in the air to produce ozone. Although ozone's precursors are naturally occmring in the environment, their existence is greatly enhanced in and aronnd urban areas, such as Cleveland, by anthropogenic contributions. Date \ii"' Edward Nam Director Air and Radiation Division 3 CERTIFICATE OF MAILING I certify that I sent a Finding of Violation, No. EPA-5-18-OH-03, by Certified Mail, Return Receipt Requested, to: Tom Gaal, Terminal Manager Zenith Energy Terminals 250 Mahoning Ave. Cleveland, Ohio 44113 I also certify that I sent copies of the Finding of Violation by email to: Bob Hodanbosi, Chief Division of Air Pollution Control Ohio Enviromnental Protection Agency bob.hodanbosi@epa.ohio.gov and James Kavalec, Enviromnental Manager Division of Air Pollution Control Ohio Enviromnental Protection Agency james.kavalec@epa.ohio.gov and David Hearne Division of Air Quality Cleveland Department of Public Health dheame@city.cleveland.oh.us On the;).~-' day of '\::>~-'2.,(YI\;.,,a- 2018. Kathy Jones Program Technician AECAB,PAS CERTIFIED MAIL RECEIPT NUMBER: Attorney-Client Privileged Enforcement Sensitive - FOIA Exempt Document Does Not Contain CBI Case Name: Zenith Energy Terminals Engineer/Scientist: Luke Hullinger and Kenneth Ruffatto Date: December 17, 2018 REGION 5 AIR AND RADIATION DIVISION CHECKLIST TO ACCOMPANY NOTICE OF VIOLATION/FINDING OF VIOLATION PART A: NOV/FOV Checklist (to be completed prior to issuance of NOV/FOY) Section I: Company Data and Financial Information 1. Name and address of violating source: Zenith Energy Terminals, 250 Mahoning Ave., Cleveland Ohio 2. Dun and Bradstreet and/or other financial information about the owner/operator of the violating source has been obtained: 2a. D Yes. Attach this information to this checklist. 2b. D No. Explanation: Explain why this information is unavailable 3. The violating source has the following NAICS Code: 424710 4. The approximate number of employees at the company who owns/operates the violating source is as follows: 15 Utilize the information in Box 3. and Box 4., along with the SBA Size Standards to determine whether owner/operator of the violating source: 5. D is a Small Business; if this box is checked, include Small Business Fact Sheet 6. ~ is not a Small Business. Is information regarding the owner/operator's net worth (corporations) or net current assets (partnerships and sole proprietorships) available on Dun and Bradstreet, or other publicly available source (e.g., company website, SEC filings, etc.)? 7. ~ Yes, the owner/operator's net worth/net current assets are: The parent company has done $105M in sales. 8. D No. Fill out Box 66. 1 Attorney-Client Privileged Enforcement Sensitive - FOIA Exempt Document Does Not Contain CBI Section II: Violations and Evidence 9. Violating Operation(s): Describe operations at the facility and provide a detailed description of the specific violating source, any pollution controls in use, and estimated emission rates (if applicable). Optional: attach diagrams or photographs as necessary. The company stores liquid petroleum products and redistributes them. Theviolation(s) involve the followin!!: pollutants (check all that annlv): Criteria Pollutants Attainment Status (see EPA Greenbook) 10. IZIVOCs Ozone: Check if Nonattainment 11. PM/PM10/PM2.s PM10: PM2.s: D Check ifNonattainment D Check if Nonattainment 12. SO2 SO2: D Check if Nonattainment PM2.s: D Check if Nonattainment 13. NOx NO2: D Check if Nonattainment1 PM2.s: D Check ifNonattainment Ozone: D Check ifNonattainment 14. D Lead 15. co Lead: CO: D Check ifNonattainment D Check ifNonattainment2 16. Organic HAP(s)3: List organic HAPs of concern 17. Metal HAP(s) 18. Ozone-Depleting Substance(s) (ODS) 19. Greenhouse Gas(s) (GHG) 20. Other: List other pollutants not otherwise specified above 1 As of December 2014, there were no NO, Nonattainment Areas in Region 5. 2 As of December 2014, there were no CO Nonattainment Areas in Region 5. 3 If many organic HAP constituents are present, it is only necessary to list the two or three in the highest concentration. Similarly, it is not necessary to list organic HAP constituents present in trace amounts. 2 Attorney-Client Privileged Enforcement Sensitive - FOIA Exempt Document Does Not Contain CBI The source violated the following regulation(s) (check all that apply): 21. SIP [CAA 110] 21A. D Violation of federally enforceable state construction permit, operating nonTitle V permit or FESOP 22. ~NSPS [CAA 111] List Subpmi(s) in 40 CFR Part 60 23. Part 61 NESHAP [CAA 112) List Subpart(s) in 40 CFR Part 61 24. Part 63 NESHAP [CAA 112) List Subpart(s) in 40 CFR Pmi 63 25. PSD [CAA 165 - 169) (fill out Box 47.) 26. DNonattainment New Source Review [CAA Title I, Part DJ (fill out Box 47.) 27. Ozone-Depleting Substances [CAA Title VI] 28. Title V Permitting Requirements: 28A. D Failure to timely apply for a Title V Permit or Title V renewal 28B. ~ Violation of Title V permit condition 29. Other: List other CAA provisions violated by source Were any of the following used as evidence to establish a cited violation? (click all that apply): 30. D Stack test results: Specify EPA Reference !\frthod(s) or ASTM test method(s) 31. Method 9 Readings (attach Log Sheet) 32. D Observations/measurements during inspection (attach Inspection Report) 33. D CEMS data or ambient air quality monitoring data (attach data summary) 34. D Emissions calculations 35. D Other documents (e.g., 114 Response) Was other credible evidence (i.e., a method other than that provided by the applicable rule) used to establish or support any violations set forth in the NOV/FOV? 36. ~ Yes. FLIR video of hydrocarbons leaving rim vents and instrumentation on tanks. 37. No. Does any violation cited in the NOV/FOV constitute an "emissions violation?" (i.e., a violation of any emission limitation, emission standard, parameter that is a surrogate for emissions, or other violation that resulted in excess emissions that lasted, or is expected to last more than 7 days [168 hours, either consecutive or non-consecutive].) 38. l8l Yes. The leaking tanks lead to excess unaccounted for emissions leaving the tanks 39. No. Does any violation cited in the NOV/FOV constitute "interference?" (i.e., a violation that involves work practices, testing requirements, monitoring requirements, recordkeeping or reporting that substantially interferes with enforcement or a determination of the source's compliance.) 40. D Yes. Briefly explain this detem1ination 41. ~ No. 3 Attorney-Client Privileged Enforcement Sensitive - FOIA Exempt Document Does Not Contain CBI Is any violation cited in the NOV/FOV (check all that apply): 42. ~ Continuous in nature, and currently on-going; 43. D Intermittent in nature, and likely to recur; 44. D Concluded and unlikely to recur 45. Provide the starting date(s) and ending date(s) of each violation occurring within the past 5 years along with the number of days of each occurrence. For continuing violations, mark "on going" for the ending date. For intermittent violations, you may list multiple starting and ending dates. Violation Designation Start Date End Date Number of Days Leaking rim vents on tanks 120, 121, 8/29/2018 present and 122 Leaking instrumentation on Tank 190 8/29/2018 oresent 46. Provide a narrative description of the violations. Discuss all evidence used to support the violations. Provide attachments as necessary. 1. Zenith violated 40 C.F.R. 60.112b(a)(l)(ii)(B) by failing to equip the internal roofs of Tank 120, Tank 121, and Tank 122 with two seals that form a continuous closure around the circumference of the tank, and/or Zenith violated 40 C.F.R. 60.112b(a)(l )(vi) by setting the rim vent gasket of Tank 120, Tank 121, and Tank 122 to open when the internal roof was floating. 2. Pursuant to Section C. l 1.b)(2)b. of Zenith's Permit, all openings on Tank 190, except stub drains, shall be equipped with a cover, seal, or lid which is to be in a closed position at all times except when in actual use for tank gauging or sampling. 47. If Box 25. or Box 26. is checked: Provide list of all projects, and the date of each project alleged to have triggered PSD or NANSR. For each project and each triggering pollutant, provide detailed emission calculations that demonstrate the increase exceeded applicable thresholds. List all assumptions, emission factors, and the source of all data used in making emission calculations. Provide attachments as necessary. Provide PSD/NSR emission calculations 48. Identify and describe anticipated defenses and any potential problems with the case (e.g., issue with evidence, issue with differing state/federal interpretations, pending rule changes, etc.). The company could say the seals were checked and they did the required seal checks and that the FLIR camera was not detecting VOCs. 49. Describe EPA's position/rebuttal with regards to the items identified in Box 48. 4 Attorney-Client Privileged Enforcement Sensitive - FOIA Exempt Document Does Not Contain CBI The violation is for open rim vents and still constitutes a violation. There was a nitrogen blanket on the methanol tanks, but the violation is for not keeping a closure. 5 Attorney-Client Privileged Enforcement Sensitive - FOIA Exempt Document Does Not Contain CBI Section III: ETS An NOV Record has been created in ETS. 50. D Yes Section IV: Attachments 51. List all attachments to this checklist here: Inspection report CONTINUE ON TO PART B 6 Attorney-Client Privileged Enforcement Sensitive - FOIA Exempt Document Does Not Contain CBI PART B: Administrative Case Management Plan Checklist (to be initiated prior to 113 Conference, and completed as information is available) Section V: Administrative vs. Judicial Is this case an Administrative Action or a Civil Judicial Action? 52. ~Administrative4 (Skip to Section VII. Optional: Fill out Section VJ) 53. D Judicial (STOP, PART Bis only for Administrative cases) 54. D Do not know yet (Fill out Section VI) Section VI: Injunctive Relief ls the facility currently in compliance? 55. D Yes (Go to Section VII you may skip the rest of Section VJ) 56. ~ No (Go to the next line) Do you know the injunctive relief necessary for the source to comply? 57. ~ Yes: Repair floating roofs, follow-up inspection, additional monitoring for a year. 58. No: Skip to Box 62. Will the company agree to perform the action(s) listed in Box 57. within one year? 59. D Yes (This case is Administrative. Skip to Section VII) 60. D No (This case is Judicial, STOP)5 61. D Maybe/Don't know yet (Skip to Box 63.) 62. (If Box 58. is checked) List questions that must be answered to determine the injunctive relief necessary to bring the violating unit(s) into compliance. Consider asking company for this information during the 113 Conference: List questions or steps necessary to determine injunctive relief here, if applicable 62A. Date by which the company will provide this information: Click arrow to enter date 63. (If Box 61. checked) D Inform company either orally or in writing that injunctive relief must be completed within one year to return to compliance. Obtain deadline for response. (If company will not agree to perform necessary injunctive relief, or cannot perform the actions in one year, then case is Judicial, STOP.) 4 Administrative cases are generally: a.) penalty-only cases orb.) cases where the company will agree, through an Administrative Consent Order (ACO), to complete the injunctive relief necessary for compliance within one year. See also footnote 5. 5 In certain situations, obtaining injunctive relief over a period longer than one year may be availab1e through a Section l 13(d) Order, with conditions. Talk to your Section Chief if you wish to consider this option. 7 Attorney-Client Privileged Enforcement Sensitive - FOIA Exempt Document Does Not Contain CBI Section VII: Penalty Can you calculate a penalty using the CAA Penalty Policy? 64. D Yes. The penalty is: $ penalty dollars. Consider making penalty demand in 113 Conference. Consider potential Supplemental Environmental Projects (SEPs) (Skip to Section VIII) 65. 1:81 No. There's not enough information. (Go to Box 66.) 66. (If Box 65. is checked) List questions that must be answered to calculate the penalty. Consider asking company for this information during the 113 Conference. When repairs to the roofs took place. 66A. The deadline for this information is: Click the arrow lo select date 66B. The penalty is: $ penalty dollars. Section VIII: Waiver Do you plan to: 67. D seek penalties for violations occurring longer than 1 year ago? 68. D seek a penalty greater than $362,141? 69. If Box 67. or Box 68. is checked, you need a waiver. The waiver request will be drafted and sent to ORC by this date: Click arrow to select date. Section IX: Inability to Pay Do you expect that this company may claim inability to pay the penalty? 70. D Yes. Request copies of certified, complete financial statements including balance sheets, income statements, and the company's signed income tax returns, with all schedules and amendments, for the past 3 years. Ask the company to complete and return Form 4506-T authorizing the IRS to release transcripts of 3 years of tax returns to EPA. Consider requesting this information from company in the 113 Conference.6 Company will provide tax information by this date: Click anow to select date. 71. 1:81 No. STOP, YOU ARE DONE WITH THIS CHECKLIST 6 Note that if the company meets the definition of"Small Business" under the SBREFA (see Box 5.), you will need to send a Notice of Intent (also known as a "SBREFA Letter") that will also request this information. 8 Dun & Bradstreet One-Stop Report Zenith Energy Terminals Holdings llC 17 December 2018 Dun & Bradstreet One-Stop Reports for Zenith Energy Terminals Holdings LLC j 250 M~honiJ~_Ave . ,. 'DUN"SfJ ~\.~~..r: .-01-335'3238 !,, Cleveland, OH 44113-2524 ; Employee: 3 Unlt"ed-States ' '_Cotnparij-Type: PiiVateBFanCh Tel: 216-522-2300 ; Corporate Family: 8 Companies j Ultimate Parent: Zenith Energy U.S., L.P. www .arcterminafs.com ; i"Otal"A.Ss.e1:S: Industry ANZSIC 2006: ISIC Rev 4: NACE Rev 2: NAICS 2012: UK SIC 2007: US SIC 1987: Miscellaneous Financial Services 6240 - Financial Asset Investing 642 - Activities of holding companies 642 - Activities of holding companies 551112 - Offices of Other Holding Companies 642 - Activities of holding companies 6719 - Offices of Holding Companies, Not Elsewhere Classified D-U-N-S Number: 01-335-3238 Key ID5 M Number: 197041686 1 - Profit & Loss Item Exchange Rate: USD 1 = 2 - Balance Sheet Item Exchange Rate: USD 1 = 2018 Dun & Bradstreet, Inc. All rights reserved. Map provided by Pitney Bowes. Terms and privacy policy can be found on pitneybowes.com Currency conversion provided by XE.com. Terms and privacy policy can be found on xe.com Published by Dun & Bradstreet, Inc., 2018 Page 2 Corporate Family Dun & Bradstreet One-Stop Reports for Zenith Energy Terminals Holdings LLC Corporate Structure News: Zenith Energy U.S., L.P. Zenith Energy Terminals Holdings LLC Zenith Energy Terminals Holdings LLC Total Corporate Family Members: 8 Zenith Energy Logistics Partners LP ARCTerminals Mississippi Holdings LLC Zenith Energy Terminals Holdings LLC Zenith Energy. Terminals Holdings LLC Uet Midstream, LLC Subsidiary SubSidia_ry Holding Branch Subsidiary Zenith Energy Terminals Holdings LLC ARC Terminals Holdings LLC Branch Branch Houston, TX United States NeW_ YOrk, NY Spring, TX United States United States Curti? Bay, United states MD Denver, CO United States Cleveland, United States OH Selma, NC United States Petroleum Wholesale 105.4 111 Investment Services 0.1 103 Holding Companies 20.3 45 5tora9e anct 4 W:ar~housing Petroleum and Natural 0.3 3 Gas Extraction Holding Companies 3 Holding Companies 2 Data Noted as Source: D&B, 2018 Dun & Bradstreet, Inc. All rights reserved. Corporate linkage data: 2018 Dun & Bradstreet, Inc. All rights reserved. Published by Dun & Bradstreet, Inc., 2018 D&B D&B D&B D&B D&B D&B D&B Page 3 Dun & Bradstreet One-Stop Reports for Zenith Energy Terminals Holdings LLC kdJ.IWii,i41iiiMMi.fii/JiffiGhiitii!, 1 Location 250 Mahoning Ave Cleveland, OH, 44113-2524 Cuyahoga County United States Tel: 216-522-2300 Sales (mil): Assets (mil): Employees: D-U-N-S Number: K e y I D 5M: Industry: www .arcterminals.com Contents Industry Codes Business Description Additional Information NA NA 3 01-335-3238 197041686 Miscellaneous Financial Services 1 3h.f.M\Sli49i4i Company Type: Quoted Status: Private Branch Not Quoted Women Owned: Minority Owned: Franchise Status: Prescreen Score: Parent D-U-N-S Number: Ultimate Parent D-U-N-5 Number: No No Not a Franchise High Risk 01-935-0254 08-102-8983 ANZSIC 2006 Codes: 6240 - Financial Asset Investing ISIC Rev 4 Codes: 642 - Activities of holding companies NACE Rev 2 Codes: 642 - Activities of holding companies NAICS 2012 Codes: 551112 - Offices of Other Holding Companies US SIC 1987: 6719 - Offices of Holding Companies, Not Elsewhere Classified UK SIC 2007: 642 - Activities of holding companies Zenith Energy Terminals Holdings LLC is primarily engaged in holding or owning securities of companies other than banks, for the sole purpose of exercising some degree of control over the activities of the companies whose securities they hold. Source: D&B 2018 Dun & Bradstreet, Inc. All rights reserved. Page 4 Dun & Bradstreet One-Stop Reports for Zenith Energy Terminals Holdings LLC Page 5 & DNBi Risk Management \,MO,-------------------- Printed By:Karen Swanson Date Printed:December 17, 2018 Disclaimer: The software and infonnation ("Services") accessed herein were developed exclusively at private expense, and are proprietary to Dun & Bradstreet, Inc., and its affiliates and subsidiaries (collectively, "D&B"), and may include copyrighted works, trade secrets, or other materials created by D&B at great effort and expense. If the Customer accessing the Services is part of the executive, legislative or judicial branches of the U.S. Federal Government, the Services contained herein are a Commercial Item as that term is defined in FAR 2.101, and are comprised of Technical Data, Computer Software and Computer Software Documentation as those terms are defined in FAR 52.227-14(a) and DFAR 252.227-13. Customer's rights to use the Services are as described in the government contract signed between D&B and the Government. Under no circumstances wlll the Customer accessing the Services have greater rights in the Services provided hereunder than "limited Rights" as that term is defined in FAR 52.227-14 (ALT II) and DFAR 252.227-7013(f) and "Restricted Rights" as that term is defined in FAR 52.227-14 (ALT 111) and DFAR 252.227-7014(f), respectively. Live Report: ZENITH ENERGY TERMINALS HOLDINGS LLC D-U-N-S Number: 08-106-5362 Endorsement/Billing Reference: Regions KSwanson LHullinger _D&B -~~~r~s" ____________ ___ __________ ____________ Address 250 Mahoning Ave Cleveland, OH, US 44113 Phone 216 522-2300 Fax location Type Single Location Web Endorsement : Region5 KSwanson LHullinger Company Summary PAYDEX Commercial Credit Score Percentile Financial Stress Score National Percentl!eD&B Viability Rating Bankruptcy Found D&B Rating Unavailable OS Currency: Shown in USO unless otherwise indicated Moderate to High Risk of severe financial stress. View More Details The information available does not permit us to classify the cornpa-"~Y~----- This is a single location Year Started SIC line of business NAICS 2007 4789 Transportation services 488999 Commercial Credit Score Class No public filings data is currently available. 5 4 3 2 V High Low PAYDEX Trend Chart O&B t:loes not !'l!z;ve enough infoirmatlorn on this ,.comp.any-tin build a PAYDEX Trend Chart. 5 4 V High 2 Low Predictive Scores Currency: Shown in USD unless otherwise indicated ~ The D&B Viability Rating uses D&B's proprietary analytics to compare the most predictive business risk indicators and deliver a highly reliable assessment of the probability that a company wi!I go out of business, become dormant/inactive, or file for bankruptcy/insolvency within the next 12 months. The D&B Viability Rating is made up of 4 components: -------------------"~---~~_,__ " Viability Score 9 5 High Risk Compared to All US Businesses within the O&B Database: -1 Low Risk Level of Risk: Low Risk Businesses ranked 5 have a probability of becoming no longer viable: 7 % Percentage of businesses ranked 5: 14 % Across all US businesses, the average probability of becoming no longer viable: 14 % Portfolio Comparison 9 5 High Risk Compared to All US Businesses within the same MODEL SEGMENT: Model Segment: Firmographics and Business Activity Level of Risk: Low Risk Businesses ranked 3 within this model segment have a probability of becoming no longer viable: 7 % Percentage of businesses ranked 3 with this model segment: 11 % Within this model segment, the average probability of becoming no longer viable: 16 % 1 Low Risk Data Depth Indicator Data Depth Indicator: G Descriptive ',,, ,, 2Ll2i! A Predictive ,/ Basic Firmographics )(: No Financial Attributes Greater data depth can increase the precision of the D&B Viability Rating assessment. Company Profile Financial Data -Trade Company S!ze Not Available Not Available Small Years !n Business Established Company Profile Details: Financial Data: Not Available Trade Payments: Not Available Company Size: Small {Employees: <10 and Sales: <$10K or Missing) Years in Business: Established (5+) Conservative credit Limit Aggressive credit Limit: 1,000 7,500 5 4 3 2 Risk category for this business : MODERATE High Moderate Low The Credit Limit Recommendation (CLR) is intended to serve as a directional benchmark for all businesses within the same line of business or industry, and is not calculated based on any individual business. Thus, the CLR is intended to help guide the credit limit decision, and must be balanced in combination with other elements which reflect the individual company's size, financial strength, payment history, and credit worthiness, all of which can be derived from D&B reports. Risk is assessed using D&Bs scoring methodology and is one factor used to create the recommended limits See Help for details. The Financial Stress Score predicts the likelihood of a firm ceasing business without paying all creditors in full, or reorganization or obtaining relief from creditors under state/federal !aw over the next 12 months. Scores were calculated using a statistically valid model derived from D&Bs extensive data files. The Financial Stress Class of 4 for thls company shows that firms with this class had a failure rate of 0.84% (84 per 10,000), which ls 1.75 times higher than the average of businesses in D & B's database. Financial Stress Class : 5 3 2 High Low Moderately higher than average risk of severe financial stress, such as a bankruptcy or going out of business with unpaid debt, over the next 12 months. Probability of Failure: Risk of Severe Financial Stress for Businesses with this Class: 0.84 % (84 per 10,000) Financial Stress National Percentile: 19 (Highest Risk: 1; Lowest Rlsk: 100) Financial Stress Score: 1414 {Highest Risk; 1,001; Lowest Risk: 1,875) Average Risk of Severe Financial Stress for Businesses in D&B database: 0.48 % { 48 per 10,000) The Financial Stress Class of this business is based on the following factors: No payment experiences. Limited time in business Financial Stress Percentile Trend: D&B does not have enough information on this comrany to build a Financial Stress Percentile Trend Chart. Notes: The Financial Stress Class indicates that this firm shares some of the same business and financial characteristics of other companies with this classification. It does not mean the firm will necessarily experience financial stress. The Probability of Failure shows the percentage of firms in a given Class that discontinued operations over the past year wlth loss to creditors. The Probability of Failure - National Average represents the national failure rate and is provided for comparative purposes. The Financial Stress National Percentile reflects the relative ranking of a company among all scorable companies in D&Bs file. The Financial Stress Score offers a more precise measure of the level of risk than the Class and Percentile. lt is especially helpful to customers using a scorecard approach to determining overall business performance. 100-, 80 80 70 60 50 40 u: _I Thls Business Regir:in EAST NORTH CENTRA.L This Buslness Region: EAST NORTH CENTRAL Industry: INFRASTRUCTURE Employee ran{ie: Years in Business: 11-25 ... :Nationill.%; 19 50 43 UN 68 This Business has a Financial Stress Percentile that shows: Higher risk than other companies in the same region. Higher risk than other companies in the same industry. Higher risk than other companies with a comparable number of years in business. Industry INFRASTRUCTURE The Commercial Credit Score (CCS) predicts the likelihood of a business paying its bills in a severely delinquent manner (91 days or more past terms). The Credit Score class of 4 for this company shows that 9.4% of firms with this class paid one or more bills severely delinquent, which is lower than the average of businesses in D & B's database. Credit Score Class : 5 4 3 V ~Y; High 2 Low Incidence of Delinquent Payment Among Companies with this Classification: 9.40 % Average compared to businesses in D&Bs database: 10.20 % Credit Score Percentile: 15 (Highest Risk: 1; Lowest Risk: 100) Credit Score: 465 (Highest Risk: 101; lowest Risk:670) The Credit Score Class of this business is based on the following factors: No payment experiences reported Higher risk industry based on delinquency rates for this industry Higher risk region based on delinquency rates for this region Credit Score Class Percentile Trend: D&B does not have enough information on this company to build a Credit Score Class Percentile Trend Chart. Notes: The Commercial Credit Score Risk Class indicates that this firm shares some of the same business and financial characteristics of other companies with this classification. It does not mean the firm will necessarily experience severe delinquency. The Incidence of Delinquent Payment is the percentage of companies with this classification that were reported 91 days past due or more by creditors. The calculation of this value is based on D&B's trade payment database. The Commercial Credit Score percentile reflects the relative ranking of a firm among all scorable companies in D&B's file. The Commercial Credit Score offers a more precise measure of the level of risk than the Risk Class and Percentile. It is especially helpful to customers using a scorecard approach to determining overall business performance. 100- 'I 90 80 70 60 50 40 30 -~ 0 u! - I This Business Region EAST NORTH CENTRAL lndu~try INFRASTRUCTURE Years in Business 11-25 Norms This Business Region: EAST NORTH CENTRAL Industry: INFRASTRUCTURE Employee range: Years in Business: 11-25 National% 15 54 32 UN 66 This business has a Credit Score Percentile that shows: Higher risk than other companies in the same region. Higher rlsk than other companies in the same industry. Higher risk than other companies with a comparable number of years in business. Trade Payments p&B. PAYD.EX<il>. Currency: Shown in USD unless otherwise Indicated ~ Timeliness of historical payments for this company. Current PAYDEX is Industry Median is Payment Trend currently is Unavailable 80 Equal to generally within tem,s Unavailable, compared to payments three months ago Indications of slowness can be the result of dispute over merchandise, skipped invoices etc. Accounts are sometimes placed for collection even though the existence or amount of the debt is disputed. Total payment Experiences in D&Bs File (HQ) N/A Payments Within Tenns (not weighted) N/A Trade Experiences with Slow or Negative Payments(%) N/A Total Placed For Collection N/A High Credit Average N/A Largest High Credit N/A Highest Now Owing N/A Highest Past Due N/A D&B has not received a sufficient sample of payment experiences to establish a PAYDEX score.D&B receives nearly 400 million payment experiences each year. We enter these new and updated experiences into D&B Reports as this information is received. At this time, none of those experiences relate to this company. For all payment experiences within a given amount of credit extended, shows the percent that this Business paid within tem,s. Provides number of experiences to calculate the percentage, and the total credit value of the credit extended. :;$t~d;tE~~ded Over 100,000 50,000-100,000 15,000-49,999 5,000-14,999 1,000-4,999 Under 1,000 #.P~Ymenf Eq)eriences:}; 0 0 0 0 0 0 Total Amotlrit 0 0 0 0 0 0 of:P,8Y_m~ntS Withi~ ,:~r~s: 0% 0% 0% 0% 0% 0% Based on payments collected over last 24 months. All Payment experiences reflect how bills are paid in relation to the tem1s granted. In some instances, payment beyond tem1s can be the result of disputes over merchandise, skipped invoices etc. D&B has not received a sufficient sample of payment experiences to establish a PAYDEX score.D&B receives nearly 400 million payment experiences each year. We enter these new and updated experiences into D&B Reports as this information is received. At thls time, none of those experiences relate to this company. Public Filings Currency: Shown in USO unless otherwise indicated ~ A check of D&B's public records database indicates that no filings were found for ZENITH ENERGY TERMINALS HOLDINGS LLC at 250 Mahoning Ave , Cleveland OH . D&B's extensive database of public record information is updated daily to ensure timely reporting of changes and additions. It includes business-related suits, liens, judgments, bankruptcies, UCC financing statements and business registrations from every state and the District of Columbia, as well as select filing types from Puerto Rico and the U.S. Virgin Islands. D&B collects public records through a combination of court reporters, third parties and direct electronic links with federal and local authorities. Its database of U.S. business-related filings is now the largest of its kind. History & Operations Company Name: Street Address: Phone: Present management control Currency: Shown in USO unless otherwise indicated ~ ZENITH ENERGY TERMINALS HOLDINGS LLC 250 Mahoning Ave Cleveland , OH 44113 216 522-2300 11 years The following information was reported: 02/01/2018 The Delaware Secretary of State's business registrations file showed that Zenith Energy Terminals Holdings LLC was registered as a limited liability Company on June 8, 2007, under file registration number 4367449. Business started 2007. 02/01/2018 Description: Provides transportation services, specializing in pipellne terminal facilities. SIC &JtAJC SIC: Based on information in our file, D&B has assigned this company an extended 8-diglt SIC. D&B's use of 8-digit SI Cs enables us to be more specific about a company's operations than if we use the standard 4-digit code. The 4-digit SIC numbers link to the description on the Occupational Safety & Health Administration {OSHA) Web site. links open in a new browser window. 4789 9901 Pipeline terminal facilities, independently operated NAICS: 488999 All Other Support Activities for Transportation Financials [ Request Financial_ Statements j Requested financials are provided byZENITH ENERGY TERMINALS HOLDINGS LLCand are not DUNSRight certified. D & B has been unable to obtain sufficient financial information from this company to calculate business ratios. Our check of additional outside sources also found no information available on its financial performance. To help you in this instance, ratios for other firms in the same industry are provided below to support your analysis of this business. Based on this Number of Establishments 11 Profitability Return on Sales % UN 4.7 UN Return on Net Worth % UN 28.2 UN Short-Term Solvency Current Ratio UN 1.7 UN Quick Ratio UN 1.3 UN Efficiency Assets to Sales % UN 41.8 UN Sales ; Net Working Capital UN 12.1 UN Utilization Tota! Uabi!ities / Net Worth{%) UN 113.9 UN UN = Unavailable This information may not be reproduced in whole or in part by any means of reproduction. Disclaimer: The software and information (''Services") accessed herein were developed exclusively at private expense, and are proprietary to Dun & Bradstreet, Inc., and its affiliates and subsidiaries (collectively, "D&B"), and may include copyrighted works, trade secrets, or other materials created by D&B at great effort and expense. 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