|Tesoro Upgrading Rail Car Fleet to Consist Entirely of Newer CPC-1232-Compliant Cars|
SAN ANTONIO - February 6, 2014 - Tesoro Corporation (NYSE: TSO) announced today that Tesoro Refining & Marketing Company LLC (TRMC) has proactively begun replacing older cars in its crude oil rail car fleet with post-October 2011 design, CPC 1232-compliant rail cars, after evaluating rail car safety features.
Specifically, Tesoro is committing that its rail car fleet will consist entirely of the newer DOT-111 design rail cars equipped with reinforced shields and relief devices by mid-2014. While this action applies to the vast majority of crude oil deliveries into Tesoro facilities, beginning in mid-2014 Tesoro will also make rail car design a part of its commercial considerations with all business partners who may ship crude oil into company-owned facilities. This includes Tesoro's refinery in Anacortes, Wash., and the proposed Tesoro-Savage Energy Distribution Terminal in Vancouver, Wash.
"Tesoro is committed to the safe and environmentally sound handling of crude oil. The safe design of rail cars in crude service is of paramount importance," said Keith Casey, senior vice president of strategy and business development, Tesoro. "We're proactively making these commitments today, before expected changes in future federal regulations, because we believe it's the right thing to do for all of our stakeholders."
The upgrades to Tesoro's rail car fleet will be completed before construction of the proposed Tesoro-Savage Energy Distribution Terminal would begin and before the terminal would start accepting crude oil deliveries. Because Tesoro is underpinning the initial capacity of the facility, many of the crude oil deliveries handled at the terminal at start-up will be owned by Tesoro and will arrive in Tesoro rail cars.
Tesoro Corporation, a Fortune 100 company, is an independent refiner and marketer of petroleum products. Tesoro, through its subsidiaries, operates six refineries in the western United States with a combined capacity of over 850,000 barrels per day. Tesoro's retail-marketing system includes over 2,200 retail stations under the Tesoro®, Shell®, ARCO®, Exxon®, Mobil® and USA Gasoline (TM) brands.
This earnings release contains certain statements that are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 concerning the conversion of its rail fleet. For more information concerning factors that could affect these statements see our annual report on Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission. We undertake no obligation to publicly release the result of any revisions to any such forward-looking statements that may be made to reflect events or circumstances that occur, or which we become aware of, after the date hereof.