Turbine Oil Presentation

Mission Statement Custom Engineered Lubricants Utilizing Premium Base Stocks and Specific Additives Creating Superior Lubrication Technology Working With the OEM to Meet the Needs of Today’s Complex Equipment Assess Our Customers Needs and Requirements for Customized Lubricants

C & C Oil Company Over 2 Decades of Lubrication Experience World Class Production Facility Uncompromised Quality Readily Accessible Service for Large & Small Customers Complete Customer Satisfaction

SOUTHERN COMPANY Gas Turbine Requirements Equipment Efficiency

Minimize Downtime

Investment Protection Consolidate Inventor Reduce Maintenance Costs Lower Energy Costs Oxidation

SOUTHERN COMPANY Steam Turbine Requirements Equipment Efficiency

Minimize Downtime

Investment Protection Consolidate Inventor Reduce Maintenance Costs Lower Energy Costs Oxidation

Turbine Oil History The opportunity for vastly superior technology in NOW

Oxidation Life in Hrs. 10000 8000 6000 4000 2000

•Simple mineral oils •Earliest chemical oxidation inhibitors

•Solvent refined oils •Improved oxidation inhibitors

•Further hydroprocessed oils •Advanced antioxidants •Hydroprocessed oils available

•2nd generation ashless EP/AW

•Basic oxidation inhibitors •Ashless EP/AW available

•No EP/AW

•No extreme pressure/ anti-wear

0 40’s & 50’s

60’s & 70’s

80’s & 90’s

Next Generation

Petroleum Base Stock Viscosity Saturate Sulfur Index 1970’s - Solvent Refined

<90%

>0.03% 90-100

1980’s - Hydroprocessed

>90%

<0.03% 95-105

1990’s - Severely >90% Hydro processed

Conclusion

<0.03% 120+

Cleaner, Clearer and Better

Synthetic Base Stock (Polyalphaolefins) Optimal Base Fluid Performance - No Aromatics - No Wax - No Sulfur Bett er th an Pe tr ole um Base * In thermalSt & ock* oxidation tests with or without additives

Types of Industrial Lubricant Additives Rust and Oxidation Inhibited, R&O No Load Carrying, 0.2 or Lower Neutralization Number

AW

Anti-Wear, Added for Film Strength, Utilizes Organo Metallic Compounds, i.e. Zinc, 0.25 and Higher Neutralization Number

EP

Extreme Pressure, Added for Load Carrying Properties Normally Utilizes Sulfur and Phosphorus Chemistry, 0.5 Plus Neutralization Number

Neutralization How Additives Affect Neutralization Numbers

Historically, Neutralization # (Acid Value) Limitations Prohibit the Use of AW & EP Additives in Turbine Applications AW & EP Systems Are Typically Considered to

Additive Co-Existence? Generic turbine oils are not giving optimal performance in today’s advanced systems. Until now, generic turbine oils could not utilize the benefits of anti-wear and extreme pressure additives in addition to rust & oxidation inhibitors, while maintaining low neutralization number requirements.

C & C Philosophy

Optimized CustomerSpecific Additives

+

Petroleum or

Synthetic Base Stock

=

C & C Oil Company “Successful lubrication depends on providing a lubricant with the proper additives and viscosity matched to the specific application.”

Research & Development Research & Development at Other Major Oil Companies is Focused on Passenger Car Technology 99.99% of Research Dollars Ends Up in the Parking Lot Additive Companies Are Highly Focused on Automotive Industry The Small Volume of

C & C Oil Company At C&C Oil Company, Our Research & Development is Specific to Our Customers’ Turbines and Supporting Equipment We are Dedicated to the Power Generation Industry We Focus on

OEM Spec’s Establish Minimum (Sub-Optimum) Standards THE

from C & C Oil Company

Far Exceeds OEM Minimum Specifications

C & C Oil Company The

Optimized Neutralization Number for Longer Life Provides AW & EP Properties Use One Product

Testing Oxidative & Thermal Stability Our Turbine Oil Far Exceeds OEM Oxidation Requirements C&C Oil Does In-Depth Testing for All Critical Issues Subjected to More Rigorous Testing than OEM - Cincinnati Machine Testing

In Depth Anti-Wear Analysis Increased Load Carrying Properties Improved Wear Characteristics - FZG-ASTM D 5182 - ASTM D 4172 - ASTM D 2783

Hydrolytic Stability Testing

Denison HF-O Specificatio - Perform with the presence of Moisture (ASTM D 2619) - Resists Acid and Sludg Formation (ASTM D 4310) Denison Filtration Procedure

Rust & Corrosion Service All Turbine Oils Must Pass Basic Tests for Rust and Corrosion We Address: - Chemistry - Contaminants - Potential for Bacterial Corrosion

PASS

FAIL

Typical Gas Turbine OEM Specifications Tests Oxidation - ASTM D943 - ASTM D2272

Foam

- ASTM D892

Load Carrying

- FZG - ASTM D 5182 Load Stage W/O Failure

Neutralization

Manufacturer 2,000 >300 450/0, 50/0, 450/0 7

C & C’s “New Millennium” 6,000+ 1200+ 0/0, 0/0, 10/0 9

- ASTM D974

Report

<0.20

Air Release - ASTM D3472

< 5 min.

< 2 min.

Typical Steam Turbine OEM Specifications Tests Oxidation - ASTM D943 - ASTM D2272

Foam

- ASTM D892

Load Carrying

- FZG - ASTM D 5182 Load Stage W/O Failure

Neutralization - ASTM D974

Air Release - ASTM D3472

Manufacturer 3,000 >500 50/0, 50/0, 50/0 7

C & C’s “New Millennium” 6,000+ 1800+ 10/0, 10/0, 10/0 9

0.20 Max

<0.20

< 5 min.

< 2 min.

Optimized Lubricants for Our Customers

R&O

100% Greater

AW

Improved Operation, Additional Performance Characteristics

EP

Substantially Greater Load Carrying Capacity

Examples of C & C Commitment to Optimized Lubrication for the Power Generation Industry

Field Trial Results: Electric Power Utility ABB / C-E Pulverizer Fluid

Friction Reduction (Amperage)

Average Operating Temp.

Output (hp Change)

Mineral-Based ISO-220 Gear Oil

75

52.5

418 hp

Energy-Efficient C&C Duration EP-220

71

48.8

395 hp

5.3% Reduction

7% Reduction

23 hp Improvement

Results Using C&C

Field Trial Results: Electric Power Utility B&W Pulverizer Coal Total Processing Energy Energy per Mill kWh/Ton kWh/

Fluid

Energy per Mill per Year kWh x 106

Energy Savings per Mill kWh

Annual Energy Cost Savings Year

-

--

Mineral-Based ISO-460 Gear Oil

12.89

541.38

4.55

Energy-Efficient C&C Duration EP-460

12.17

511.14

4.29

260,000 $6,500

Equates to ±9.5% Additional Revenue/Mill/Year

Actual $ Savings Plant Miller Alabama Power, Quinton, AL $ in Millions 5

Annual 4 Energy Costs to run 3 28 B&W Pulverizes

Initial Use of Duration EP-460

$3,185,000

$3,003,000

2 1

1990

1994

1998

2002

Exceeds Basic Industry Specifications Extends Oxidation Life & Service Intervals Longer Bearing Life With AW & Load Carrying Features Superior Performance When Exposed to Moisture

C&C OIL COMPANY