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Date of Inspection: 4-24-15 Date of Report: 5-1-15 Maintenance Facility: Granite City Mo Alltranstek Representative: Tonya Taylor – [email protected] Reason for inspection: Change of service from Crude to Ethanol Shop Contact Mitch Wood Grant Johanson via email –[email protected] White Energy Holding Company Vice President of Operations 402-759-1920 This report details the inspection of 3 Tank Cars that has been prepared for Ethanol Service from Crude Oil. NGL Crude Transportation owns the cars going into lease with White Energy. These cars have been have had a diesel wash on the interior followed by a steam wash of 195 degrees from the lined and up to a 300 degree on the unlined carbon steel tanks. Once the two cleaning process were complete they loaded with Ethanol for a flush out twice. All three cars were sufficiently cleaned for change of service from crude to ethanol. The only thing that had trace of crude product still in was the induction line prior to the ethanol flushes; however once the ethanol flush is complete this should illuminate this. NGL is planning on send a sample of the flushed ethanol off to have it tested for contaminants, once that is complete Mitch Wood will send results to all parties involved. I do want to note that normally valves are removed, tested, and repaired when tank cars are cleaned. Bubble leak testing is the final step to verify that a tank car is ready to load and valves are leak free. My visual inspection is not a substitution for a bubble leak test. The next shipper is taking on risk that a valve may leak; on cars not bubble leak tested. Inspection Results: HSRX 3337 Tank can be described as a non-Jacketed BOV car; DOT111A100W-1. Tank is has interior lining of International 2900LV Applied 04-2014. 1. Random Spot test reading of DFT averages 12.5 2. Interior Visual Inspection done prior flushing has small residue of on walls as illustrated below. 3. Interior – no defective condition 4. Valves that are visible is free from contaminant Conclusions: Car passed Inspection for cleanliness

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Page 1: White Energy - Change of service crude to Ethanol - 4-24-15 Tonya Taylor (1) (1) (1).PDF

Date of Inspection: 4-24-15

Date of Report: 5-1-15

Maintenance Facility: Granite City Mo

Alltranstek Representative: Tonya Taylor – [email protected]

Reason for inspection: Change of service from Crude to Ethanol

Shop Contact Mitch Wood

Grant Johanson via email –[email protected] White Energy Holding Company Vice President of Operations 402-759-1920 This report details the inspection of 3 Tank Cars that has been prepared for Ethanol Service from Crude Oil. NGL Crude Transportation owns the cars going into lease with White Energy. These cars have been have had a diesel wash on the interior followed by a steam wash of 195 degrees from the lined and up to a 300 degree on the unlined carbon steel tanks. Once the two cleaning process were complete they loaded with Ethanol for a flush out twice. All three cars were sufficiently cleaned for change of service from crude to ethanol. The only thing that had trace of crude product still in was the induction line prior to the ethanol flushes; however once the ethanol flush is complete this should illuminate this. NGL is planning on send a sample of the flushed ethanol off to have it tested for contaminants, once that is complete Mitch Wood will send results to all parties involved. I do want to note that normally valves are removed, tested, and repaired when tank cars are cleaned. Bubble leak testing is the final step to verify that a tank car is ready to load and valves are leak free. My visual inspection is not a substitution for a bubble leak test. The next shipper is taking on risk that a valve may leak; on cars not bubble leak tested.

Inspection Results: HSRX 3337

Tank can be described as a non-Jacketed BOV car; DOT111A100W-1. Tank is has interior lining of International 2900LV Applied 04-2014.

1. Random Spot test reading of DFT averages 12.5 2. Interior Visual Inspection done prior flushing has small residue of on walls as illustrated

below. 3. Interior – no defective condition 4. Valves that are visible is free from contaminant

Conclusions: Car passed Inspection for cleanliness

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HSRX 3337 Side View

HSRX 3337 Build Block Built:04-14

HSRX 3337 Qualification Block and Interior Lining Decal View Qualification Due: 2024

Page 3: White Energy - Change of service crude to Ethanol - 4-24-15 Tonya Taylor (1) (1) (1).PDF

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HSRX 3337 Top valve arrangement View

HSRX 3337 Product Tubing View

HSRX 3337 Interior View

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HSRX 3337 Large Valve View Clean free from contaminants

HSRX 3337 Manway lid free from contaminants

HSRX 3337 Interior view of the patch White spot in center is a pad that was wiped on the patch showing very small residue from wash

Page 5: White Energy - Change of service crude to Ethanol - 4-24-15 Tonya Taylor (1) (1) (1).PDF

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HSRX 3337 View of side wall Pad showing slight residue from wash

HSRX 3337 Interior view of footer pad

HSRX 3337 Induction tubing show crude oil residue. Once flushed this should be eliminated

Page 6: White Energy - Change of service crude to Ethanol - 4-24-15 Tonya Taylor (1) (1) (1).PDF

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HSRX 3337 Sample tubing showing small crude residue Flushing of ethanol should eliminate

HSRX 3337 View of top

HSRX 3337 Interior View showing patches

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HSRX 3337 Ball has slight residue

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Inspection Results: GROX 132088

Tank can be described as a non-Jacketed bottom outlet tank, DOT 111S100W1. Tank is Carbon Steel with NO interior lining.

1. Slight Corrosion is noted on the Man way Lid 2. Interior Visual Inspection done prior flushing, tank has rust blooms developing which is

normal to this type of car. 3. Interior – has very minor corrosion on roof of tank 4. Valves that are visible is free from contaminant

Conclusions: Car passed Inspection for cleanliness

GROX 132088 Side View

GROX 132088 Qualification Block Qualification due 2023

Page 9: White Energy - Change of service crude to Ethanol - 4-24-15 Tonya Taylor (1) (1) (1).PDF

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GROX 132088 Build Block Built: 06-2013

GROX 132088 Top Valve arrangement

GROX 132088 Manway Lid View Slight corrosion developing

Page 10: White Energy - Change of service crude to Ethanol - 4-24-15 Tonya Taylor (1) (1) (1).PDF

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GROX 132088 Air Valve Clean free from contaminants

GROX 132088

GROX 132088 Interior overall view Carbon still cars are difficult to get a good picture due to lighting

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GROX 132088 Wall on the right side of tank Showing clean with slight rusting

GROX 132088 BOV Area Has slight cleaning residue left however when final flush is complete this will be eliminated

GROX 132088 Interior view of roof where slight corrosion in developing, at this point there is no need for concern.

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Inspection Results: GROX 132084

Tank can be described as a non-Jacketed Bottom outlet car; DOT111S100W-1. Car was loaded with Ethanol when I arrived. Mobile unit has told me it was loaded for approximately 12 hours prior to them dumping for inspection. I was not able to get down inside of car after dumping as fumes where too strong. I witness flushing and watched through a clear piping of ethanol. No contaminants appear to be present in flush; however a sample was taken and will be tested. Lab results will be sent to all parties involved from NGL once received.

Conclusions: Car passed Inspection for cleanliness

GROX 132084 Side View

GROX 132084 Clear View port from drain line Ethanol shows no discoloration

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GROX 132084 Clear View port from drain line No Settlements present

GROX 132084 Interior View after flush Walls and floors are clean free from contaminants. Ethanol is present in photos

GROX 132084 Interior View after flush Walls and floors are clean free from contaminants. Ethanol is present in photos

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If you have any questions, do not hesitate to call and discuss. Regards, Tonya Taylor 870-324-0941 [email protected] Tom Williamson – t_d_ [email protected] Mitch Wood – [email protected] Jerry Charaska – [email protected]