ACME - Refinery JUNE 28th 2000

Process Heater Efficiency Testing Results & Annual Cost Savings Calculations
INDEX Page 2 Scope of Test / Heaters tested / Personnel involved Page 3 Test Devices / Calculation Constants / Testing Procedure Page 4 Thermox Efficiency Calculations Program Page 5 H-1101 #3 CTU Lubes Charge Heater data Page 6 H-1103 #3 Vacuum Charge Heater data Page 7 H-1202 #4 HDS Fractionator Reboiler data Page 8 H-24 #2 HDS Charge Heater data Page 9 Obtaining State-of-the-Art Combustion / Process Heater Efficiency Testing Summary Page 10 Cost Savings / Auto Verification mode / Improved Maintenance / Reduced WHS inventory Page 11 Safety Enhancements / Additional Indication of Safe Operation / Reduced Employee Exposure / Conforming to area Classification / E-Gate reporting / Replacing the WDGIII / Analyzer Count by LCR Area. Page 12 A Comparison of Various O2 Analyzer Brands used by ACME Page 13 Critical parts availability statement from Thermox dated 3-28-00

ACME Refinery Process Heater Efficiency Testing Results and Annual Cost Savings

ACME Refinery

Process Heater Efficiency Testing Results and Annual Cost Savings Calculations
Scope of Test
In an effort to quantify the cost savings that will be realized by ACME Refinery by monitoring combustibles in addition to oxygen, an air-to-fuel ratio step testing exercise was performed by AMETEK, Pan Tech and ACME instrumentation and operations personnel on Wednesday, May 10th. The testing was performed on the following process heaters:

Heaters Tested
H 1101 - Large Cylindrical Crude Heater (Balanced Draft, Maximum Duty = 250 MMBTU/HR) H 1103 - Medium Size Cylindrical Vacuum Heater (Balanced Draft, Maximum Duty = 100 MMBTU/HR) H 1202 - Small Cylindrical Process Heater (Natural Draft, Maximum Duty = 60 MMBTU/HR) H 24 - Small Vertical Box Process Heater (Natural Draft, Maximum Duty = 38 MMBTU/HR)

Personnel Involved
Personnel from ACME, High Tech Engineering (fictitious Thermox Representative) and AMETEK (Thermox Business Unit) collaborated to perform the air-to-fuel ratio step testing to help -maximize the efficiency of the heaters listed above. The team members are listed below: ACME Dave Jones Instrumentation Technician John Smith Plant Operator Charles Doe Control Room Operator HIGH TECH Engineering Jeff Wilson Sales Engineer AMETEK Process & Analytical Instruments Division (Thermox Business Unit) Don Stewart Thermox Service Manager Dennis Hungerman Thermox Product Engineer

ACME Refinery Process Heater Efficiency Testing Results and Annual Cost Savings

Test Devices
The AMETEK P-300 portable flue gas analyzer, O2 indication from the existing Thermox oxygen analyzers and the plant's Honeywell TDC 3000 DCS were utilized to obtain the required data. The following parameters were monitored during each heater air-to-fuel ratio step testing exercise: Excess Oxygen (O2) Carbon Monoxide (CO) Nitric Oxide (NO) Excess Air Process Heater Duty (firing rate) Stack Temperature

Constants used in calculations.

The as found readings and optimum efficiency point readings were used to determine the cost savings that can be achieved by monitoring O2 and Combustibles. Jim Jones who is a ACME Process Engineer at the refinery provided the following economic data concerning fuel cost: Refinery Fuel Gas Lhv = 900BTU/Mscf Refinery Fuel Gas cost = $2.25/ MMBTU Refinery Fuel Gas Cost = 2.025/Mscf

Testing Procedure
On the balanced draft process heaters, H1101 and H1103, the air-to-fuel ratio step testing was carried out in the following manner: 1 The as found values for the process heater duty, stack temperature and normal %O2 set point were recorded from the DCS. The maximum heater duty was also obtained from the control room operator. The air supplied to the process heater burners was reduced by either dropping the O2 set point for the forced draft damper controller in small increments or by placing the FD fan controller in manual and reducing the output to the FD fan damper in small increments. This was performed while maintaining a constant firing rate (heater duty). The O2, CO and NO were monitored to record the optimum control point that would safely provide the maximum efficiency gain The optimum control point stack temperature was also recorded, and the heater duty and product temperature was also monitored to make sure that they did not change by an appreciable amount during the testing. To determine he optimum control point for the natural draft heaters, the air-to-fuel ratio step testing was carried out in the following manner: A. The as found values for the process heater duty, stack temperature and normal %O2 set point were recorded from the DCS. The maximum heater duty was also obtained from the control room operator. B. Closing the burner registers in small increments reduced the air supplied to the process heater while maintaining constant firing rate (calculated heater duty). C. The O2, CO and NO were monitored to record the optimum control point that would safely provide the maximum efficiency gain.

ACME Refinery Process Heater Efficiency Testing Results and Annual Cost Savings

D. The optimum control point stack temperature was also recorded, and the heater duty and product temperature was also monitored to make sure that they did not change by an appreciable amount during the testing.

AMETEK Thermox Efficiency Calculations Program.

The heater efficiency and annual cost savings were calculated using the AMETEK Thermox Efficiency Calculations Program. The Thermox program has set fuel selections for Natural Gas, No. 2 Fuel Oil, No. 6 Fuel Oil and Coal. The ACME refinery fuel gas has an approximate heat of combustion of 900 BTU/scf. Because there are differences in the design and measurement methods for every burner, the efficiency given by the calculation program is a relative efficiency. However, the results reported will be based upon conservative estimates of fuel cost and stack temperature changes between the as found values and optimum control point. ACME should experience greater savings for each heater if the process heaters are controlled at lower O2 set points while monitoring the combustibles levels. The results for the air-to-fuel ratio step testing listed by heater number are illustrated in the next four pages of the report. A test results summary is listed on Page 8.

ACME Refinery Process Heater Efficiency Testing Results and Annual Cost Savings

H 1101 TEST DATA #3 CTU Lubes Crude Charge Heater

Balanced Draft Cylindrical Process Heater (Large Crude Heater) As found values (current normal operating conditions): 6 09:00:00 5/10/2000 7 2.8% Excess O2 8 0 PPM CO 9 50 PPM NO 10 Stack Temperature (after air heater) = 316 F 11 Efficiency (Based on Natural Gas) = 84.4% 12 Maximum Duty = 250 MMBTU/HR 13 Duty = 216 MMBTU/HR 14 Firing rate = 86.4% 15 Fuel Cost = $2.025/scf 16 Operation (Availability) = 24 hours per day, 365 days/year (ACME reported the heaters are only turned around once every 3 years) 17 Annual Fuel (refinery fuel gas) = 2,102,400,000 ft3 18 Annual Fuel Cost (refinery fuel gas) = $4,257,360 Optimum control point achieved during specification testing: 19 09:44:10 5/10/2000 20 2.00% Excess O2 21 13 PPM CO 22 41 PPM NO 23 Stack Temperature (after air heater) = 310 F 24 Efficiency (Based on Natural Gas) = 84.8% 25 Maximum Duty = 250 MMBTU/HR 26 Duty = 216 MMBTU/HR 27 Firing rate = 86.4% 28 Fuel Cost = $2.025/scf 29 Operation (Availability) = 24 hours per day, 365 days/year (ACME reported the heater is only turned around once every 3 years) 30 Annual Fuel (refinery fuel gas) = 2,093,990,400 ft3 31 Annual Fuel Cost (refinery fuel gas) = $4,240,330 NO Reduction = 9 PPM = [1-(41 PPM/50 PPM)]*100% = 18% Refinery Fuel Gas

ANNUAL COST SAVINGS = $17,029

ACME Refinery Process Heater Efficiency Testing Results and Annual Cost Savings

H 1103 TEST DATA #3 Vacuum Charge Heater

Balanced Draft Cylindrical Process Heater(Medium Size Vacuum Heater) As found values (current normal operating conditions): 32 11:20:00 5/10/2000 33 3.0% Excess O2 34 8 PPM CO 35 42 PPM NO 36 Stack Temperature (after air heater) = 421 F 37 Efficiency (Based on Natural Gas) = 81.8% 38 Maximum Duty = 100 MMBTU/HR 39 Duty = 52.9 MMBTU/HR 40 Firing rate = 52.9% 41 Fuel Cost = $2.025/scf 42 Operation (Availability) = 24 hours per day, 365 days/year (ACME reported the heater is only turned around once every 3 years) 43 Annual Fuel (refinery fuel gas) = 514,893,333 ft3 44 Annual Fuel Cost (refinery fuel gas) = $1,042,659 Optimum control point achieved during specification testing: 45 11:42:35 5/10/2000 46 47 48 49 50 51 52 53 54 55 0.50% Excess O2 158 PPM CO 25 PPM NO Stack Temperature (after air heater) = 413 F Efficiency (Based on Natural Gas) = 82.9% Maximum Duty = 100 MMBTU/HR Duty = 52.9 MMBTU/HR Firing rate = 52.9% Fuel Cost = $2.025/scf Operation (Availability) = 24 hours per day, 365 days/year (ACME reported the heaters are only turned around once every 3 years) 56 Annual Fuel (refinery fuel gas) = 509,229,506 ft3 57 Annual Fuel Cost (refinery fuel gas) = $1,031,189 NO Reduction = 17 PPM = [1-(25 PPM/42 PPM)]*100% = 40% Refinery Fuel Gas

ANNUAL COST SAVINGS = $11,469

ACME Refinery Process Heater Efficiency Testing Results and Annual Cost Savings

H 1202 TEST DATA No. 4 HDS Fractionator Reboiler

Natural Draft Cylindrical Process Heater As found values (current normal operating conditions): 58 14:20:00 5/10/2000 59 2.8% Excess O2 60 56 PPM CO 61 41 PPM NO 62 Stack Temperature = 763 F 63 Efficiency (Based on Natural Gas) = 73.9% 64 Maximum Duty = 60 MMBTU/HR 65 Duty = 23.8 MMBTU/HR 66 Firing rate = 39.6% 67 Fuel Cost = $2.025/scf 68 Operation (Availability) = 24 hours per day, 365 days/year (ACME reported the heater is only turned around once every 3 years) 69 Annual Fuel (refinery fuel gas) = 231,653,333 ft3 70 Annual Fuel Cost (refinery fuel gas) = $469,098 Optimum control point achieved during specification testing: 71 14:44:51 5/10/2000 72 2.5% Excess O2 73 320 PPM CO 74 33 PPM NO 75 Stack Temperature = 760 F 76 Efficiency (Based on Natural Gas) = 74.1% 77 Maximum Duty = 60 MMBTU/HR 78 Duty = 23.8 MMBTU/HR 79 Firing rate = 39.6% 80 Fuel Cost = $2.025/scf 81 Operation (Availability) = 24 hours per day, 365 days/year (ACME reported the heaters are only turned around once every 3 years) 82 Annual Fuel (refinery fuel gas) = 231,190,026 ft3 83 Annual Fuel Cost (refinery fuel gas) = $468,159 NO Reduction = 8 PPM = [1-(33 PPM/41 PPM)]*100% = 19% Refinery Fuel Gas

ANNUAL COST SAVINGS = $938

ACME Refinery Process Heater Efficiency Testing Results and Annual Cost Savings

H 24 TEST DATA No. 2 HDS Charge Heater

Natural Draft Box Process Heater with two stacks As found values (current normal operating conditions): 84 15:10:00 5/10/2000 85 3.6% Excess O2 west stack 86 0 PPM CO 87 92 PPM NO 88 Stack Temperature = 968 F 89 Efficiency (Based on Natural Gas) = 68.2% 90 Maximum Duty = 38 MMBTU/HR 91 Duty = 37.8 MMBTU/HR 92 Firing rate = 98.1% 93 Fuel Cost = $2.025/scf 94 Operation (Availability) = 24 hours per day, 365 days/year (ACME reported the heater is only turned around once every 3 years) 95 Annual Fuel (refinery fuel gas) = 367,920,000 ft3 96 Annual Fuel Cost (refinery fuel gas) = $754,038 Optimum control point achieved during specification testing: 97 15:45.51 5/10/2000 98 2.5% Excess O2 99 0 PPM CO 100 95 PPM NO 101 Stack Temperature (after air heater) = 966 F 102 Efficiency (Based on Natural Gas) = 69.8% 103 Maximum Duty = 38 MMBTU/HR 104 Duty = 38.7 MMBTU/HR 105 Firing rate = 98.1% 106 Fuel Cost = $2.025/scf 107 Operation (Availability) = 24 hours per day, 365 days/year (ACME reported the heaters are only turned around once every 3 years) 108 Annual Fuel (refinery fuel gas) = 362,033,280 ft3 109 Annual Fuel Cost (refinery fuel gas) = $733,117 **The optimum control level was not reached on this heater due to some operations concerns during the test. The O2 set point can be dropped even further since we did not encounter any combustibles at the lowest excess O2 achieved when reducing the air to the heater VIA the burner registers. This savings realized by installing two O2 & Combustibles analyzers on the east and west stacks of this heater will be justified. This heater is not balanced based upon the delta stack temperature and O2 between the east and west stacks. Refinery Fuel Gas

ANNUAL COST SAVINGS = $20,920**

ACME Refinery Process Heater Efficiency Testing Results and Annual Cost Savings

OBTAINING STATE-OF-THE-ART COMBUSTION CONTROL

Combustion Efficiency - Measuring Oxygen and Combustibles
Measuring oxygen alone is insufficient for combustion efficiency purposes because of the ever-changing burner/heater conditions that affect the amount of combustibles in the flue gas. Ideally you want to provide just the right amount of air to completely burn the fuel. But this proves elusive for a number of reasons, including inadequate mixing of air and fuel, burner performance, fluctuating operating and ambient conditions, and burner wear and tear. To ensure that all of the fuel is burned with little or no combustibles, some amount of excess air is provided. To insure no more excess air than required is used, you measure the excess oxygen in the flue gas. To ensure the amount of hydrogen or carbon monoxide in the flue gas is minimized, combustibles are measured. The Series 2000 based or IQ based combined oxygen and combustibles analyzers enable both measurements to be made at a single sample point. From this, the supply of excess air can be controlled on a continuous basis, minimizing heat loss and unburned fuel loss, and therefore ensuring the most efficient operation of your process heaters.

Process Heater Efficiency Testing Summary

The table listed below summarizes the benefits that can be realized controlling the heaters utilizing the combustible measurement along with the oxygen. The WDG IVC/IQ (smart) or WDG-IVC (Series 2000 Based) analyzer can provide oxygen and combustibles measurement for heater process control. The pay back time for the cost of the combustibles measurement ($2.5K to $3K) is well within a year for three out of the four analyzers listed below. A significant reduction in NOx emissions was also achieved which will help promote ACMEs continuing commitment of reducing pollutant emissions while maintaining safe operating levels as close to Stoichiometric combustion as possible. Heater # As Found Efficiency (%) Highest Efficiency Achieved During the Testing (%) 84.8% 82.9% 74.1% 69.8% ANNUAL COST SAVINGS ($) Nitrogen Oxide Reduction (%)

H 1101 H 1103 H 1202 H 24**

84.4% 81.8% 73.9% 68.2%

$17K $11.5K $932 $21K

18% 40% 19% 3%

**The optimum control level was not reached on this heater due to some operations concerns during the test. The O2 set point can be dropped even further since we did not encounter any combustibles at the lowest excess O2 achieved when reducing the air to the heater VIA the burner registers. This savings realized by installing two O2 & Combustibles analyzers on the east and west stacks of this heater will be justified. This heater is not balanced based upon the delta stack temperature and O2 between the east and west stacks.

ACME Refinery Process Heater Efficiency Testing Results and Annual Cost Savings

Maintenance & Daily Environmental Reporting Cost / Savings Considerations

Using the Auto Calibration/Verification Option
Labor Cost Savings: Daily verification is required of Forty (40) existing analyzers due to environmental regulations. The current procedure is for operations personnel to perform a manual verification cycle at every state mandated furnace. Estimated time to complete this requirement is 30 minutes per analyzer or Thirty (20) total man-hours per day. Estimated total labor cost per day for verification is: 20 man-hours x $23.00/ hr = $575.00/ day x 365= $ 167,900.00 annual labor cost for verifications. This figure does not include additional cost for associated paper work required for documentation. This annual cost would be eliminated with the Remote Auto Calibration/ Verification System proposed for replacement analyzers. The verification data could be transmitted into the DCS or Thermox Communications unit (S2000 HOST or E-gate) automatically making it easily accessible to ACME environmental personnel.

ACME can expect their analyzer maintenance to improve substantially

as a result of the new products that Ametek offers. The continued technology upgrades that have been incorporated into the Thermox product line have drastically reduced the maintenance time required when comparing them to the existing WDG-III analyzers at the facility. We are unable to provide any calculations on potential annual savings, however if ACME compared the maintenance costs of the 15 + Thermox 2000 series analyzers in operation against the 65+ WDGIIIs dispersed throughout the site, there would be a definite difference in annual labor cost per analyzer.

Parts savings and reduced WHS inventory: Over the last three years ACME- has spent on
average $40,000.00 annually for Thermox analyzer parts. Typically on new Thermox analyzer installations the parts costs are minimal the first three years on consumables. Additionally during the first twelve (12) months after installation any parts that fail will be under warranty. Therefore a very conservative figure for parts consumption the first three years after installation for 75 new analyzers is $ 6,000.00 for a total savings of $ 114,000.00. The LCR WHS currently maintains part inventory for four different models of O2 analyzers. This inventory can be reduced to a maximum of two. Craft person training and familiarity will be improved by the reduced variety of analyzer brands models.

ACME Refinery Process Heater Efficiency Testing Results and Annual Cost Savings

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Safety enhancements from the Auto Verification, Combustibles and Serial communications features..
Analyzing the heater flue gas for Oxygen and Combustibles content provides an additional indication of safe heater operation (not redundant). If tramp air levels are excessive, the Oxygen analysis will be artificially high. The Combustion monitor can indicate a smothered burner and/or an optimum fuel to air ratio in spite of tramp air, fuel BTU changes or a burner malfunction. Conditions an Oxygen-only monitor could miss. Serial Communications and the remote Verification feature reduce the exposure of employees on, under or around the process heater. Diagnostics can be performed by maintenance personnel from the Host Unit in the equipment room. The daily verification cycle is performed without any human intervention. Excessive drift values are alarmed to the DCS. Electrical area classification has become an issue since the LCR was evaluated several years ago. None of the Controllers for the older analyzers now meet area classification. The new WDG IV with the model 2000 controller will meet the new area classification (without needing an air purge).

Future E-gate Remote (Internet link) or Local Service and performance trending system will be available for Series 2000 and IQ based Thermox analyzers. The functionality of Series
2000 HOST controller can also be utilized to reduce operating and maintenance cost by providing the ability to remotely interface to multiple Series 2000 based or IQ based Thermox oxygen and/or combustibles and/or methane analyzers. The existing and remote communications interfaces available along with the remote calibration option will provide a useful tool that will insure ACME achieves high reliability without having to spend unneeded time performing manual calibration verifications, local interrogation and/or troubleshooting steps. It will provide an easy cost-effective means to track analyzer and process performance while reducing the time required for any corrective or predictive maintenance.

Replacing the existing WDG-III O2 Analyzers with Series 2000 Based or IQ Based WDGIVC O2 and Combustibles
The efficiency and cost savings data provided in this report justifies replacement of the WDG-III oxygen only analyzers with WDG-IVC Series 2000 based or IQ based analyzers with the auto-calibration option. AMETEK is very proud of the fact that we have manufactured a product that has withstood such a test of time. A number of the analog WDG-III analyzers still in operation today are over 20 years old and operating well. We feel we have demonstrated a high level of commitment to the service and support of our customers and the products we manufacture. However, the linearizer boards will only be available until October of 2000 due to circumstances beyond our control. Please take this into consideration regarding the timeline for future upgrades/replacements.

END OF STACK TESTING REPORT

ACME Refinery Process Heater Efficiency Testing Results and Annual Cost Savings

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ANALYZER COMPARISON GUIDE FROM EARLIER EVALUATIONS

THERMOX
Multiple Sensors and mounting configurations for different process applications. Close- Coupled extractive design has fastest response time for process control applications. Third Party approvals for all worldwide regulations for hazardous area requirements. Proven Combustibles detector to maximize combustion efficiency and provide process safety No- piped in reference air required. Communications Network allowing remote monitoring and troubleshooting which will reduce maintenance and spare parts costs. Smart Electronics Proven track record with ACME, which will reduce costs for training and installation.

YOKOGOWA
Insitu Only design limits applications that are high temperature. Modified extractive system available( for high temperature applications) but is expensive and high maintenance. Slower response time to process changes Requires piped in reference air No third party certification for hazardous areas No combustibles detection available No Smart Electronics No Communications network Would require field modifications to mount analyzers on existing brackets Training required Requires unflanging the probe to perform routine maintenance, which could create an undesirable atmosphere for maintenance technicians.

ROSEMOUNT
Insitu Only design limits applications that are high temperature. Modified extractive system available( for high temperature applications) but is expensive and is high maintenance. Slower response time to process changes Recommends piped in reference air Combustibles option available but not proven design ( Has been on the market for one year but none have been installed) No Communications network Would require field modifications to mount analyzers on existing brackets Training required Requires unflanging the probe to perform routine maintenance, which could create an undesirable atmosphere for maintenance technicians.

ACME Refinery Process Heater Efficiency Testing Results and Annual Cost Savings

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****NOTICE FROM VENDOR OF PARTS OBSOLESCENCE

UPDATE IMPORTANT NOTICE (un-AVAILABILITY) LINEARIZER MODULE
To: All Worldwide Representative and Distributors of Thermox Flue Gas Analyzers

Date: 3/28/00 On July 14,1999 you all received an important notice regarding the availability of the 80163SE and 80215SE linearizer modules. Enclosed is a copy of that memo for your reference. The purpose of this memo is to update you on the current availability of the 80215SE and 80163SE. At this time the 80215SE are no longer available. We anticipate that the 80163SE will only be available until October of this year. At this time we do not have 80163SE in inventory and have a backlog of orders that will almost totally deplete the last of our supply. In the memo of 7/14/99, we anticipated a 14-18 month supply and it now looks like we will certainly fall within that timeframe. It is most important that you inform all customers within your territory that have analog analyzers, primarily WDG III, and IIIC of this update. Please make sure they understand that linearizer boards of any part number will no longer be available past October of this year. We hope that since our notice of 7/14/99, those customers who have analog Thermox analyzers have thought about how they can work with Ametek and update their old systems. Depending on the vintage and type of analog analyzer, retrofitting is a possible option that should be considered. In any case, Ametek can help determine what the most cost-effective approach may be and would like to help all of our valued customers develop a transition strategy. Ametek is very proud of the fact that we have manufactured products that have withstood such a test of time. A number of the analog analyzers still in operation today are over 20 years old and operating well. We feel we have demonstrated a high level of commitment to the service and support of our customers and the products we manufacture. The discontinuance of the linearizer boards is due to circumstances outside of our control and we hope our valued customers understand. I hope our customers feel that we have handled this matter in a responsible fashion and give us the opportunity to provide them with another Thermox Flue Gas Analyzer that will last the next 20 years or more. Sincerely, Dave Strelec Thermox Business Unit Sales Manager

ACME Refinery Process Heater Efficiency Testing Results and Annual Cost Savings

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