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IMPORTANT Safety information about the Bakersfield Refinery

Who we areParamount Petroleum Corporation, a subsidiary of Alon USA, is the operator of the Bakersfield Refinery at 6451 Rosedale Highway. Our company and its predecessors have been a part of California’s petroleum refining industry for many years and the Bakersfield Refinery has been part of your community since 1932.

What we doThe Bakersfield Refinery has the capability to receive crude oil and refined petroleum products by pipeline, train, and truck. There are several tanks in which crude and various refined products can be stored. The refinery is also capable of making products including gasoline, diesel fuel and other motor fuels that meet California’s strict air quality standards. These refined products are distributed to customers by rail, pipeline, and truck. Equipment and processes at our facility include refining units for distillation, hydrocracking, catalytic reforming and sulfur recovery as well as storage tanks, loading and off-loading facilities.

Bakersfield Refinery - Since 1932

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Are there potential hazards from the refinery?In our refinery, as in other petroleum refineries, chemicals are used in the refining process and are transported to the facility. These chemicals have the potential to be hazardous if released or spilled accidentally. There are also chemicals formed as a result of the refining process. One of these is hydrogen sulfide (H2S), which is formed when sulfur is removed from petroleum during the refining process. Removing sulfur produces cleaner fuels and prevents air pollution. H2S can be hazardous and unhealthful if released into the air in large enough quantities. Below, there is more detailed information about H2S and actions to take in the event of an accidental release.

Safety FirstOur commitment to the people and communities in which we live and work is to operate safely, be a good neighbor and to act in an environmentally responsible manner. Our highest safety priority is the well-being of our neighbors, the surrounding community and our employees. At the time this information was prepared, our Bakersfield Refinery employees had worked more than four (4) years without an OSHA Recordable injury. We are very proud of this exceptional record. While we cannot guarantee that our refinery will never have an incident, our goal is to support and extend this “Strong Employee Safety Culture” into all parts of our operations, safety and environmental compliance.

A superior safety record does not happen without a significant cooperative effort between public agencies and our company employees. While our primary safety focus is always prevention, we have plans, equipment, and personnel in place to effectively respond to an emergency or refinery disruption. We also need to rely on expert leadership and support from public organizations such as the Kern County Fire Department and the Kern County Public Health Services Department, Environmental Health Division.

The Shelter-in-Place and safety information in this brochure is an example of this cooperative effort. It is intended to assist you in the unlikely event of a release of unhealthful or hazardous materials from our facility or from another potential source in the community. 3

The Refinery Flare – A Visible Safety SystemIt is not uncommon to get questions about our refinery flare. The flare is the tall stack which may have a noticeable flame at its top. It is one of the most visible parts of the Bakersfield Refinery, and from outside the fence, can look quite spectacular or maybe even alarming on occasion. However, when you understand its purpose you can appreciate how it is designed as an important safety feature.

What is the flare’s role? A flare is a safety relief valve for the refinery. Refining oil is a dynamic process and occasionally a disruption such as a sudden loss of power may cause excess pressure in refinery units and vessels. To relieve the pressure, excess gas is diverted to the flare where it is combined with steam and burned. The system ensures maximum combustion of hydrocarbons (gas) while minimizing emissions into the air.

Why the flame and why is it larger at times? Like any safety system, the Bakersfield Refinery flare must be constantly ready in the event it is needed. Similar to gas appliances in your home, the flare uses a pilot flame which is always burning at the top. A visible flame at the top of the flare does not mean that the refinery is experiencing a problem.

During a planned interruption for maintenance or an unplanned disruption to the operation – such as a power failure – the flame may become larger and more visible. Steam to the flare increases as excess gas is burned and the flare may become noisier with a rumbling sound. The increased steam is necessary to improve the combustion and minimize pollution.

“The refinery flare.... designed as an important safety feature.”

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Are there any negative impacts to the community caused by flaring? The flare is a safety device which is used in the event there is a disruption to our operations. A small flame, or even a larger flame without smoke, should not produce significant negative impacts other than noise. Under certain conditions there may be a short period where dark smoke is visible as steam is adjusted to improve combustion. Refinery personnel constantly monitor the flare system via television monitors to eliminate the likelihood of dark smoke. A prolonged period of dark smoke (more than 3 minutes) could indicate incomplete combustion of hydrocarbons and gasses that may be unhealthful to people who are exposed to smoke at ground level. People with chronic respiratory ailments will be more susceptible. If you see smoke or smell a strong chemical odor, it would be prudent to shelter-in-place. Please see instructions on page 9.

What other community risk is there from the refinery?The refinery handles crude oil and various refined products. These substances are combustible and flammable. We have safety systems and procedures for safe handling in place; however, a fire could result in smoke and unburned hydrocarbons being released into the air. This could present a health risk to people who are exposed for an extended period of time.

Hydrogen sulfide (H2S)Hydrogen sulfide could also present a significant health risk if released in a substantial quantity. Hydrogen sulfide (H2S) is formed during the decay of organic matter. It can be found in natural gas and oil wells, fertilizers, sewers and cesspools. In the refining process, hydrogen sulfide is formed when sulfur is removed from refined products in order to produce cleaner motor fuels and gasoline. If sulfur was not removed from gasoline and motor fuels our community’s air quality and unhealthful effects would be much worse. After extraction, the refinery further processes and converts hydrogen sulfide into elemental sulfur which can be used in fertilizer production.

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Hydrogen sulfide (H2S) is a flammable gas with an offensive odor. In a low concentration it will have a characteristic “rotten egg” odor. Hydrogen sulfide is also slightly heavier than air, but will mix and is diluted in open air and light wind. As a safety precaution, fixed H2S sensors with panel and local mounted alarms are located throughout the refinery and are regularly maintained and calibrated to manufacturer specifications. In addition, all refinery employees wear a portable H2S monitor that will quickly alert them if H2S is present. These measures provide early detection so refinery employees can take safe and prompt action to prevent a further release and/or notify emergency responders.

While it is unlikely that H2S would be released in a quantity that would present an immediate and significant danger to our neighbors, even very low concentrations can cause discomfort including irritated eyes and throat, coughing and occasionally nausea in sensitive people. If you experience any of these symptoms, please shelter-in-place.

How will I know if there is an emergency at the refinery?Communications from Emergency Officials -- Ready Kern

Kern County has established a state-of-the-art emergency notification system to alert residents and businesses about natural disasters and other emergencies. The Ready Kern emergency notification system enables county emergency officials to rapidly provide essential information to residents and businesses in various emergencies, such as chemical releases, earthquakes, severe weather, fires and floods. Paramount Petroleum pays a fee to support the Ready Kern emergency notification system. We encourage our neighbors to enroll and take full advantage of this valuable community service.

How Ready Kern Works

Emergency communications begin when Kern County issues a message about a potential safety hazard or concern. Messages are sent to all standard voice and text communication devices, including landline phones, cell phones, and by e-mail. If you don’t confirm receipt of the message, the system will try to reach your second contact number or email. The system will continue trying to contact you until it receives a confirmation from you.

To receive important communications from Kern County, residents and business owners must register the voice and text communication devices on which they wish to receive messages. 6

SIGN UP FOR EMERGENCY ALERTS

Residents and businesses were automatically registered in the Ready Kern system if a phone number and street address were listed in a public telephone directory (White Pages) when the system was initially implemented.

Residents are encouraged to register online for Ready Kern at the County’s website www.co.kern.ca.us (select the Emergency Tab) or at the Kern County Fire Department website www.kerncountyfire.org (select the Education Tab).

How will neighbors know whether to shelter-in-place?

Visible Signs

Visible signs of a disruption might include a high and persistently burning flare, dark smoke, or a gas cloud. The refinery makes and emits steam in some of its processes, so a white plume of steam – with the absence of other indicators – is not a sign of a disruption. Emergency responders such as the Kern County Fire Department (responding with red lights and sirens) may also indicate a problem at the refinery.

Sounds

The Bakersfield Refinery has emergency warning alarms with loud speakers that are installed throughout the operating areas of our refinery. These can alert our employees and the surrounding community to an incident or emergency.

Please note: The Bakersfield Refinery alarms are tested every Tuesday at 3:00 p.m. In the absence of any other indication, an alarm at this time is a test and would not require Shelter-in-Place or other action.

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The following is an explanation of the Horn Alarm pattern and what our neighbors should consider if they hear the horn.

Horn Blasts – Short Pattern: A repeated pattern of one, two or three short horn blasts would indicate that the refinery is experiencing an upset, disruption or incident in one of its processing units or areas.

What should neighbors do? Generally, no action is required at this time. This type of upset, disruption or incident is being handled by refinery personnel and first responders have been notified if needed. Listen for additional alarms and if you are enrolled in Ready Kern, you may receive a message with further instructions on your phone or other preferred communications device.

Horn Blast – Two (2) Minutes Continuous: A loud, continuous horn blast of two minutes alerts Refinery employees and the community of a fire or more serious emergency. It also indicates that emergency responders have been or are being notified.

What should neighbors do? If you hear a two minute long continuous horn blast any time, (other than the Tuesday, 3:00 pm testing) make preparations to Shelter in Place as directed. Listen for additional alarms and be prepared to receive messages from Ready Kern on your phone or preferred communications device and to follow the instructions.

Horn Blast – Fifteen (15) Seconds – All Clear: After an incident, disruption or emergency is under control, a 15 second horn blast is sounded to inform employees that the situation is controlled and that they are cleared to resume their work.

What should neighbors do? After a Fifteen (15) Second “All Clear” alarm is sounded, neighbors should continue to await additional instructions from Emergency Responders or Ready Kern notification.

Odors

Neighbors who notice a “rotten egg” or other chemical odor outside of their homes should go inside and follow the Shelter-In-Place instructions that follow.

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Shelter-in-Place If a major airborne chemical release occurs at the refinery, air quality outside the refinery may be impacted. As a result, it is important for you to know what to do. Generally, it is safer to Shelter-in-Place until the wind disperses and moves the chemical away than to attempt to evacuate through a chemical cloud.

What is Shelter-In-Place?

Shelter-In-Place is a precaution developed by emergency officials to minimize exposure to chemicals by remaining inside your home or place of business. The best location to Shelter-In-Placeis an interior room, with no or few windows. Emergency response officials generally agree that in the case of a chemical accident or release, those people who shelter indoors are much safer than those who remain outside and are possibly exposed to chemicals.

What should I do?

Shelter

If notified to Shelter-In-Place or a chemical odor or other sign of possible exposure is detected, go inside your home, office or other building. Bring in your pets if you think appropriate. A pre-selected interior room with no or few windows is the best location.

Close

If possible, go to a room with no or few windows. Close all exterior windows and doors. Locking the windows may provide a tighter seal. Taping or sealing cracks or openings will provide more protection. Damp towels can be placed below closed doors to provide a better seal.

Close or turn off anything that might bring air in from the outside. Examples are heating and air conditioning systems, fireplace dampers, vents, range fans, bathroom fans and clothes dryers.

Listen

Wait for information and further instructions from Emergency Officials or through Ready Kern. Do not use the telephone unless you have an emergency. Following an “all clear” notification, you can use fans to move fresh air through your home.

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Do you have questions?Would you like more information about the refinery?

Call our community line at: 661-635-2442Identify yourself as a neighbor and ask to speak to a manager.

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a subsidiary of

6451 Rosedale HighwayBakersfield, CA 93308

(661) 635-2442