Tourism and NuStar Terminals, N.V.

2015 Statia Sustainable Conference

NuStar Terminals, N.V.

Table of Contents • NuStar Terminals, N.V. Terminal

Information

• Tourism and NuStar Terminals, N.V.

• Socio-Economic Impact In General Volunteerism and Community

Involvement Historical Project Economic Impact Ongoing Operations Economic

Impact Economic Study Overview

• Questions

NuStar Terminals, N.V.

NuStar Terminals, N.V. Largest NuStar Terminal with 72

commercial and utility tanks holding over 14 million barrels of storage

A - 8 floating roof tanks 5 million barrels fuel oil or crude.

E E - Lower Terminal 8 tanks distillates and fuel oil 0.7 million barrels.

A

B

B - 26 cone roof tanks 6 million barrels (heavy fuel oil or crude)

C

D

D - Mezzanine 10 tanks internal floating roofs for light distillates 1.1 million barrels

C - New 70 series tanks adds 5 (diesel/jet) tanks 1 million barrels

NuStar Terminals, N.V.

Barge Dock @ Jetty • 17 Ft. Draft

Jetty • Conventional finger pier jetty with 2 berth ship dock. 55 feet draft. • Berth One South Side 20 -175 DWT • Berth Two North side 20-100 DWT • Transfer rates 5000 - 30,000 BBLS per hour

Barge Floating Hose Station • 17 Ft. Draft • 7,200 DWT

NuStar Terminals, N.V.

SPM Single Point Mooring • 80,000 – 525,000 DWT • 48” Subsea Pipeline (6,200 feet) • Two 24” subsea hoses from PLEM • Load rates up to 95K BPH

Monopile Station • 4 Subsea lines (12” and one 8”) • East mooring up to 10,500 DWT • West mooring up to 80,000 DWT

Emergency Response Team: Drastic increase in Dutch Ministry & St. Eustatius

local Government Regulations Members: 23 ER Team members Equipment:

E-one Fire Truck Quick attack Fire Truck 1 x 10,000 gallon Battler Gun trailer 2 x 2, 000 gallon Hired Gun trailers >6,000’ of fire hoses and fixed fire monitor systems >500 fire extinguishers 3 - Upper Terminal 8,70 HP Fire Pumps 1 – Lower Terminal 1,250 HP Fire Pump Various spill response equipment

NuStar Terminals, N.V.

Spill Response Capabilities – Emergency Response Vessel Statia Responder in Dry-dock yard

Unique to St. Eustatius is that the facility must generate all of it own electricity, heating, clean water and trash disposal capabilities.

The Terminal maintains: • Power Generation • Boiler’s for Steam Heating • Hot Oil Circulation • Fire Pond • R.O. Water Production Plant • Incinerator

Tourism and NuStar Terminals, N.V.

Tourism and NuStar are linked in many ways through the various ongoing projects and day to day operations. The Terminal employs approximately 126 full time employees as well as in excess of 250 contractors and various outside vendors, all of which travel to the Island, stay in local facilities, as well as purchase goods and services and use the participate in the local activities. The direct economic impact on the Island includes revenues received by local companies for services such as: Hotels Rental Vehicles Restaurants Rental Houses and Apartments Utilities Shops and Stores Local Activities such as Dive Shops

Socio-Economic Impact – In General

The NuStar Terminal has a Direct Socio-Economic Impact on the Island Including: Employees/Contractors/Tonnage

126 Employees 250+ Contractor Employees Largest non-government employer Second only to Rotterdam for most tonnage

moved through a port in the Kingdom. Diverse culture base, languages spoken

include: English Spanish Papiamento Dutch

Infrastructure 72 Tanks Multiple loading/discharge facilities and

technologies Elevation range from sea level to 575’ Refinery Working vessel and dive crews Fleet of vessels and barges Diverse operations that have to be self-sustaining

Socio-Economic Impact – Historical Projects

Major Projects Total Spending

60 Series (2007/2008) $48,556,008

Hot Oil Project (2009/2010) $75,790,841

70 Series Project (2011/2013) $61,528,888

Debottleneck Project (2013-2015 YTD) $17,801,102

Grand Total: $203,676,839

Socio-Economic Impact – Ongoing Operations for 2015

Capital investments $33,543,000

Operating expenses:

Salaries and wages $17,748,000 Travel, hotel, food & beverage $524,000 Local housing & utilities $367,000 Local charitable donations $200,000 Other direct local payments $6,687,000 Total local payments $25,526,000 Indirect local payments $6,573,000 Taxes $5,803,000 Other expenses $23,400,000 Total operating expenses $61,302,000

Grand Total: $94,845,000

Socio-Economic Impact – Economic Studies

NuStar Commissioned two independent Social Economic Impact Studies on the Island Economy Including: November 2009 – AIB Bank December 2011 – AIB Bank

The findings of these studies concluded: NuStar contributes to a Restoration Fund in the

event of closure of the terminal.

NuStar is self sufficient and does not add strain to the infrastructure of St. Eustatius.

NuStar supports St. Eustatius by providing electricity and supplementary drinking water to the Island in times of need.

NuStar donates to various non-government organizations to assist in fulfilling of their missions.

NuStar and its contractors donate hundreds of volunteer hours, money, materials, etc.

NuStar and its employees set up the Statia Way Foundation which is a donation vehicle set up to assist the community of Statia.

Socio-Economic Impact – Volunteerism and Community Involvement

NuStar Terminal has a Direct Involvement with the Scientific Community of St. Eustatius: STENAPA:

Floral/Fauna Studies Direct Involvement with Jr. Rangers Program Beach Protection Assistance Open Door Policy for Research

SECAR: Marine Permit Section 26 Monitoring Various Historical logical Assessments Open Door Policy for Ongoing Research

Programs

Emergency Response: Various Response Drill Exercises Fire Brigade Training

Educational/Sport/School Programs: Ongoing Various Internships Sponsoring special events for schools and

education programs

Socio-Economic Impact – Charitable Donations

Statia Way Foundation: Funding began in 2009.

Nearly $350,000 has been

contributed to the fund since its inception, averaging $50,000 per year.

Over $260,000 has been donated to over 30 organizations, averaging $40,000 per year.

Beneficiaries include: Auxiliary Home Chapel Piece Daughters of the King Schools Many other NGOs and local associations.

NuStar Charity: Donates an average of $200,000 per

year.

Cash beneficiaries include: STENAPA Mega D Youth Foundation St. Eustatius Animal Welfare Foundation St. Eustatius Musical Foundation St. Eustatius Tourism Development

Gifts in kind include: Golden Rock playground restoration Terminal park Red Cross Ambulance Medical Center generator Medical Center eye examination equipment Hearse building and vehicle Summer Job Program and internships. Scholarships