COASTAL-FMC CURRENTSN E W S A N D H A P P E N I N G S F O R C O A S T A L & F M C T R A N S P O R T

By Katie Montgomery | March 2017 | www.coastal-fmc.com

WELCOMETO THE COASTAL ENERGY EMPLOYEE NEWSLETTER

et ready to learn more about your company and your fellow employees! Each month this newsletter will feature employee

profiles, new hire information, family updates, and more. If you have an idea for future newsletters, please send it to me any time:

katie@coastal-fmc.com

IN THIS ISSUE• MANAGEMENT UPDATE • OPERATIONS UPDATE• NEW HIRES• DOING IT RIGHT• BIRTHDAYS • FLEET OPERATIONS UPDATE• TIPS FROM THE SAFETY MAN• NEWS AND OTHER HAPPENINGS

ISSUE 17

RESULTS, CHANGE, MISTAKES, AND IDEAS - IT IS SIMPLY A "WE" FUNCTION FROM ERIK MONTGOMERY | ERIK@COASTAL-FMC.COM

his may be the longest and most in-depth article I have written since the newsletter started. Over the last six to eight months, we have seen a lot of changes in the organization. This has been from top to bottom and vice versa. We are collectively a team striving for the same results. However, some changes have been

to the benefit of the operation and some have failed or were not efficiently presented and/or communicated.

The last few months have been a whirlwind of travel, conferences, and meetings. Here in the office we as a team seem to struggle with results, changes, mistakes, and ideas. I would like to go into detail here.

We are a team first and foremost. There are times we all forget this, and I myself get so caught up in working toward a goal I can't see the forest for the trees. There is nothing wrong with admitting a mistake; it makes it easier to find the solution.

For example, approximately three months ago we believed formalizing a handbook for FMC Transport was needed to assist in getting all on board with the same procedures we have had in place for over 15 years. This was a classic miscommunication and a failure on our part. There is more to FMC Transport than just drivers - there are sales and other people included within the organization. The issue caused so much concern that it didn't take the path we intended. Over the last month, all drivers have been notified that we are going to change this handbook to include only what is needed for FMC Transport drivers, with another publication going to FMC Transport sales and support staff. The current handbook for FMC Transport is literally being destroyed. The blame rests fully on my shoulders, so please understand that when change takes place it isn't necessarily the fault of those handing it down. They are merely responding to what we felt was the best option.

Last fall in the safety meeting we announced that we were considering a Driver Ambassador Program. This is still in the works. We want to ensure that it is presented correctly, and gather proper feedback. We have had some dialogue with drivers that believed we just made this up since we hadn't acted on it yet. Things take time to implement

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MANAGEMENT UPDATE - CONT. FROM PAGE 1correctly. We weren't going to throw it out there just to have it fail. Business deals don't happen overnight. Every piece we work on takes months to put in place.

Another reference is the ELD's. Although there are many opinions on the subject, FMC Transport moved forward in 2016 to implement this change. All, this was a huge move for everyone within the company. Yes there were some curves, but guys we made the transition and it works. Whether we like them or not, we elected to move forward and we succeeded.

Over the last 16 months, the inner office and dispatch department has gone through a transformation as well with the implementation of PeopleNet and TMW office software. There are times that the office has literally entered information twice to ensure the accuracy of all data. It was hard and many long, frustrating hours were spent here. But now, it works. WE the team made it work. Is it the same as the old system? No, it's better. But it IS different. We had to change and adapt, and it wasn't fun.

Every month when we travel and visit with suppliers, customers, and potential customers, we walk into unknown circumstances, issues, and problems that we all have to evaluate and solve. We review economics daily to ensure all data is correct and that we are making the best decisions for the company. This is hard, but the risk is worth the reward of the daily challenges. We have successes and failures every day that many never see.

We work hard to secure the asphalt needs at pricing levels that will allow us to be competitive in the marketplace. We work hard to secure the ethanol needs at pricing levels that will allow us to compete at the daily racks. We work hard to ensure equipment is maintained to the best of our abilities so drivers can accomplish their daily duties. We work hard to negotiate with truck and trailer suppliers so we have up-to-date equipment. The Terminals - Clinton, OK, Miller, MO, and Willow Springs, MO, all work hard every day to make products, maintain the facilities, and take care of each other so everyone will be safe and productive daily. Our Safety Department is truly pro-driver and cares about every function of the company. They are involved with and help in all aspects of the operation. There are successes and failures every day in every area of the company.

During a lot of these changes, a lot of things we have pushed for have been collectively reviewed by the team. I want to make very clear that we will make both great strides and big mistakes going forward. Some people have blamed others for the good and the bad. I have sat in on these meetings and will gladly take the blame for any failures. I want you to know that I am going to fail. I am going to put things in front of you that may or may not work. I want to do great things for this company and for everyone in it. I can only do this with the team of WE. First and foremost, we will succeed. My father is and will always be my mentor and the foundation of this company. Although I strive daily to work toward the example he has demonstrated, he has big shoes to fill. I am not my father, nor do I pretend to be. However, I am working for the same reasons and I believe in this company and the morals he has instilled. This will not change, as I am proud to be my father's son and to work for this company and this team.

Now, I want us and the WE to move on and get back on target. The asphalt season is almost upon us. We are hearing from contractors that the season could start mid-March if temperatures hold. We are encouraged by the early summer weather, since we had no real winter season. Sales look to be good this summer for volumes, and we believe the drivers and office will remain very busy with the flow of work. On the supply side, we aren't seeing any new areas yet for origins for getting products. They will remain the same for the most part.

We did have a small issue at Miller and our main-line mill went down the week of February 28th. Larry Thompson and the plant worked hard to get the mill pulled out, and it is currently in Texas being rebuilt. We hope to have it back in approximately 35 days. However, in the meantime Roger Blevins, our top Mill Operator, is having to use the old mill to make all the products. For example, Roger's time in making product just tripled or got longer depending on the product slates he is making at the time. Make sure and tell Roger thanks for his time and efforts during this issue.

On the Fuel Marketing side of things, we are seeing a slight decrease in rack volumes due to pricing and over-supply of ethanol. This can correct itself overnight, and we have all seen the ups and downs of this market before. We are seeing supply points of the following for March and April: Atchison, KS; Carrolton, MO; Garnett, KS; Scandia, KS; Muscatine, IA; Washington, IN; and possibly Laddonia, MO. Of these supply points, Atchison and Muscatine are the two plants that Fuel Marketing has been working with the longest. Did you know we have over 20 years of history with Atchison, and not only with Fuel Marketing but FMC Transport as well? Did you know that we have over 15 years of history with GPC out of Muscatine? Did you know that FMC Transport pulled the first load of ethanol ever from Garnett, KS? Pretty neat facts when you consider them.

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We are seeing freight lanes on FMC Transport either be feast or famine. Competition in the marketplace has made keeping lanes very tough due to slashed rates by our competition. We are securing freight avenues that will be good and some that will be fill work. Please know that we are working to track loads and ensuring no-one will be mistreated. Please help us by running what we have secured. If drivers won't go and run the lanes we have committed to, it makes it hard to get other work from these companies moving forward. We have to take some of the bad to get the good. Nothing kills a successful meeting quicker than us getting back home, quoting lanes of freight, receiving some of them, accepting, and then FMC Transport drivers tell us they would rather not haul the loads. This kills the next deal, too, allowing other carriers in the door. We are a common carrier hired to haul freight. We don't pick the loads, nor do your dispatchers. We work for our customers.

Also, as of February we will be mailing out the newsletter to ensure everyone gets a copy. We have tried to email and leave copies at all facilities, but we still hear that you aren't seeing this important information. We want you to know what is going on, when, and why.

Again, we are going to have a new Kenworth truck on the yard in approximately 45 days. This is a trial truck for us to review in light of the partnership we are working on with Kenworth. We will review every aspect of this unit. This doesn't mean we are going to purchase the unit, more like this, etc. We are doing our homework and ensuring that we know what will best suit the organization overall. Please, drivers and mechanics: look at this unit and give us some feedback, good or bad.

I want to re-use this quote, as I believe it bears repeating:"Surround yourself with people who will leap out of the dugout should you ever charge the mound."

MANAGEMENT UPDATE - CONT. FROM PAGE 2

Trackmobile at WS Rail Facility

Jon Singleton at AAPA

Quality Paving Conference

OPERATIONS UPDATE FROM SHANE LEE | SHANE@COASTAL-FMC.COM

pring is here and the weather is beginning to turn warmer as we climb out of the blues of winter. As we shift gears and move into yet another season, let us take a good look at our equipment. Some of us, myself included, procrastinate and hold back on minor issues while it is cold and dreary over the winter months.

Now is the time to take care of those types of things. Typically, as you are all aware, freight starts to pick up about this time of year. Let’s not get behind going into the Spring and Summer by skipping the little things that need to be done. Make sure you are talking to the shop, safety, dispatch, and the rest of us to help address any issues you may have coming out of winter. Now is the time to review, reflect, and plan for the busy season ahead. Anything we can do to help you please let us know.

In the last few weeks, you have heard from many of us in the office by phone and in person. These calls and visits were an effort to open up lines of communication and dialogue that appeared closed. Please do not take away from those calls that it was a one-time event or a one-sided conversation. The hope is that we will be able to talk more openly and freely with one another going forward. I know first-hand how difficult it can be to talk to people when you do not think it matters. Well, it does matter, and we need to do more talking together and listening to one another. As individuals, not even one of us can keep things moving forward. As a team, working, communicating, and pulling together cooperatively in the same direction, good things can happen.

Attitude is hard to measure and often misunderstood. It is all too easy to misinterpret, misconstrue, or simply miss the point entirely in emails, texts, and documents, and the result can be a negative view or attitude. While all these communication methods have their place in the business world, they can be cold and impersonal. It is easy for someone to send out an email or text that is short and to the point. The meaning taken from many of those messages is often not the intended one. I know I struggle with this myself, and sometimes get my feathers ruffled, or ruffle someone else’s over the simplest of things. It is hard to step back and ask a question sometimes because we are already mad or upset the moment of the first reading of a message. I am trying to do a better job of this myself, and ask that if something you are sent upsets you, whether it is from me or not, call me up and let’s talk about it. Maybe, just maybe, we can agree about more and argue about less if we will take the time to listen and work with one another. I am committed to trying to do a better job of this and ask that you join me in that commitment.

On a related note, I would like to address our freight opportunities. Freight markets are difficult even in the best of times. With truck- and tanker-saturated markets, lanes are highly competitive. We are striving to get as many lanes as possible secured for you, but if you know of one we are not running let us know and we will see what we can do. Not all the lanes are as desirable as others, but it takes a blend of them all to make this work at the end of the day. I would ask your help in covering what loads we are able to secure. We do not want any of you always covering the “bad loads,” but we do need everyone to be team players with a positive can-do attitude. That goes for all of us. Please remember we are all dependent on the revenue for the loads to keep this program moving forward. No one wins when the loads are not covered.

On a positive note, I read today some news from Washington. Reports are that the temporary review and reprieve of the restrictive 34-hour restart rule without the two 1-5 am counting periods is going to become permanent. While there are still steps to make this permanent, it is a step in the right direction for drivers and carriers alike. This is one of the first steps we have seen in a while showing some common sense coming out of Washington. It is encouraging to see some changes from Washington, and we all hope there will be more in the future that are in favor of our industry. Finally, we have the Safety Meeting March 25, 2017, here in Willow Springs coming up soon. This meeting is a little different from those of the past as it is voluntary. There lots of reasons to be here, and I hope to see and visit with each one of you that can attend. If you are unable to attend, please remember that my door is always open, and I am glad to talk to anyone at any time about anything you feel is important. It does not have to be work-related. Some of the best conversations are about family, fun, and friends. If work comes up that is fine, too. Until the next time we talk, keep doing what you do, the best way you know how, and success will follow.

"Communication is a skill that you can learn. It's like riding a bicycle or typing. If you're willing to work at it, you can rapidly improve the quality of every part of your life."-Brian Tracy

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NEW HIRE - TERRY LEEPER POSITION: DRIVER

erry has been driving for over 25 years, so he brings valuable experience to FMC Transport. Terry is married and

enjoys fishing in his spare time. Welcome to FMC Transport!

DOING IT RIGHTach month many of you will experience Roadside Inspections. Congratulations to the following drivers who received an inspection

with no violations!

John Garcia Level IIBrent Merrick Level IIGary Gromer Level II

Keep up the good work!Joe Rogers unloading in NW Arkansas

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April 4 - Jerry CourtneyApril 5 - Tony SigmanApril 12 - Sherry VennemanApril 16 - Merle Phillips Jr.April 17 - Calvin SandlinApril 19 - Kim Robinson

Happy Birthday!

April 20 - Bobby LesterApril 24 - John WoodApril 24 - Martin MalkowskiApril 29 - Jon SingletonApril 30 - Rick Campbell

BIRTHDAYS

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FLEET OPERATIONS UPDATEFROM JOE BLANKENSHIP, FLEET OPERATIONS | JOE@COASTAL-FMC.COM

ell we made it through another winter and, praise the Lord!, Spring is finally here! As we have in the past, we the shop have been trying hard to find ways to improve the equipment and the shop operations, and with that we are continually trying to find ways of improving not only the quality of our equipment, but

also our customer service. I have always stated in my newsletter articles that my door is always open for thoughts, concerns, or suggestions, and somebody brought to us the idea of having a Write-up Box for the drivers to write up issues they might be having with their equipment.

So, we have placed a box in the fuel island area at the Willow Springs yard for drivers to write up any issues they are having with their equipment. In no way do we ever want to lose that one-on-one or personal relationship had by talking in person or on the phone - actually we would prefer you call or come to the shop and let us know. However, we know that's not always possible and we want to offer other avenues for you to inform us of issues with your equipment. Here are a few photos of the Write-up Box and its location. Please ensure you include the following when writing up your equipment: Name, date, phone number, unit number, and repairs needed/issues found. We will check this box every morning except Sunday to ensure we are seeing messages. After we receive your write-up we will call to address and/or set up a time and place to get the issues resolved.

Also, I wanted to give another quick update on some of the new Etnyer Trailers that we are using to haul bio-diesel. As we have just recently added this trailer to our fleet, we have had to make a few modifications/improvements. Below you will find photos of what we've done to improve the process and safety of using these trailers. First, we added a pump of pipe from the shoulder valve to the belly of the trailer to make it easier when hooking up at fuel terminals. Second, we added an air actuated vent to prevent the driver from having to climb to open the vent. Below you will see photos of the vent location and the locations of the air valves to open the vent.

Again, these are just a few more ways that we are trying to improve our fleet and shop operations. As always, I would love to hear from you and any thoughts and/or ideas you might have to help us improve! Thanks for all you do and remember, my door is always open!

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TIPS FROM THE SAFETY MAN: COMMERCIAL MOTOR VEHICLE DRIVER CSA BASIC FACTSFROM GARY PICARD, SAFETY | GARY@COASTAL-FMC.COM

While the Compliance, Safety, and Accountability (CSA) has been around for a little while, many commercial motor vehicle drivers are still unaware of what it is and how it can affect them. • The CSA program scores drivers individually through a Safey Measurement System. • Personal driver CSA scores are only visible to enforcement officials.• A driver can access their own personal PSP report to view violations on their profile. • The best way to dispute a violation is to use the DataQs system.• Employers can only request a Pre-employment Screening Program (PSP) report before hire.• The PSP provides a drivers inspection history for the previous 3 years and crash history for the previous 5 years.• Safety Violations will remain in the motor carrier CSA record for 24 months. • Driver safety violation will affect your employer's CSA scores for 24 months, even if you leave.• If you receive a citation in your personal vehicle, it will not affect your CSA score; however, it will still be visible

on your motor vehicle record that employers must review annually. • Warnings for speeding will be incorporated into driver's PSP report.• You cannot lose your driver's license based on poor personal CSA scores, but you may receive a "Notice of

Violation" (NOV) or "Notice of Claim" (NOC) as a part of a DOT audit of your employer. A NOV is a formal warning letter and a NOC is a fine. Ignoring either could result in a driver's removal from service.

Just remember that your information is more visible than ever before! What does your report say about your driving behaviors?

CVSA Roadcheck 2017 will be June 6-8. Make sure your equipment is ready for the Level I Inspection.

Joe Blankenship and Chad Odle at the Conxpo in Las Vegas, NV

OTHER HAPPENINGS AROUND THE COMPANY

Testing at Miller, MO with Ultra Pave

Sydney Montgomery, daughter of Erik and Katie Montgomery and Jackson Lee, son of Shane Lee, with their team at the CAT

Creative Problem Solving event(left)

Jackson Hill, son of Paul Hill, with the first - and only -

snowman of the year!(right)

Wesley Picard, son of Gary Picard, with a

nice catch(above)

Tobie Brotherton, daughter of Miranda Brotherton, with

her reading award(left)