TAC Energy Expands Caddo Mills Fuel Storage Facility

The two phase expansion poises TAC Energy for future growth

CADDO MILLS, Texas (June 28, 2008) – TAC Energy, a division of Truman Arnold Companies (TAC) based in Texarkana, Texas, completed a two year and $6.5 million expansion of its Caddo Mills fuel storage facility.

Over the last 24 months the Caddo Mills terminal, located approximately 40 miles northeast of Dallas, has undergone two major expansions. The first phase of the expansion includes adding three additional storage tanks, an additional two-bay truck load rack, product pumps, a vapor combustor, an oil-water separator and overhead piping. The new tanks increase total terminal capacity by nearly 30 percent. One of the tanks holds 80,000 Bbl. (one Bbl. equals 42 U.S. gallons) of regular (87 octane) RFG/RBOB gasoline; the second is a 50,000 Bbl. tank for premium (93 octane) RFG/RBOB gasoline; the third is a 20,000 Bbl. tank for Ethanol. RFG, or reformulated gasoline, is blended to burn cleaner and reduce pollutants in the air, and it is required for vehicles in the Dallas/Fort Worth metro area.

The second phase of expansion involved adding an 110,000 Bbl. storage tank for conventional regular gasoline and a third lane to the recently completed west load rack, providing a total of five lanes at this facility. The latest load lane will give TAC Energy the ability to blend conventional gasoline with Ethanol for our customers that desire a gasohol product. This addition is a proactive move that provides, with a simple change, the ability to convert the lane from a conventional to BOB resulting in three lanes for loading RFG products.

“This expansion enables TAC Energy to be a viable supplier of petroleum to the Dallas Metroplex while continuing to serve our customers in the surrounding areas,” said John Rettiger, Vice President of Wholesale Marketing. “We are excited about this growth opportunity and the ability to serve customers in an extended market.”

Before the expansion, the 20-year-old Caddo Mills terminal already had fuel storage capacity for 510,000 Bbl., including multiple loading lanes with both generic and proprietary gasoline additive packages with smart injectors. The completed expansion brings the total storage capacity to 770,000 Bbl.

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