1

2 PetroTech Clients

3 The PetroTech System  Filtration  Vacuum distillation  Degasification

4 The PetroTech System PURIFIES THE OIL TO ITS ORIGINAL STATE OR PURER

5 T he PetroTech S ystem DOES NOT DEPLETE ADDITIVES OR CHANGE OIL PROPERTIES

6 A PPLICATIONS

7 M INING

8 Mining Applications  Haul Trucks  SXEW Hydraulics  Crusher Hydraulics  Drill Hydraulics  Transformers  Turbines

10 A UTOMOTIVE

11 Automotive Applications  Machine Tool Hydraulics  Robotic Assembly Hydraulics  Gun Drilling Oil Systems  Gear Oil Systems

Robotic Assembly Hydraulics

14 S TEEL

15 Steel Mill Applications  Hydraulic Conveyor Systems  Gear Oil Systems  Rolling Mill Systems  Transformer Oils

Rolling Mill

17 R EFINERIES

18 Refinery Applications  Steam Turbines  Gas Turbines  Transformers

20 P ULP & P APER

21 Pulp & Paper Applications

22 P OWER U TILITIES

23 Power Utility Applications  Steam Turbines  Gas Turbines  Transformers

25 P RIMARY M ETALS

26 M ILITARY

28 Oil Never Wears Out !

29 T HE T HREE M AJOR O IL C ONTAMINANTS  Water  Particulates  Gas

30 W ATER States That Water Exists in Oil  Dissolved Water - typically    Emulsified –.5% to 4%  Free Water

31  Through system vents  From leaks in coolers and heat exchangers  Precipitation due to a fall in temperature  Introduction of contaminated top-up fluid  Rain in external reservoirs  Rain leaking into incorrectly stowed drums  Through system vents  From leaks in coolers and heat exchangers  Precipitation due to a fall in temperature  Introduction of contaminated top-up fluid  Rain in external reservoirs  Rain leaking into incorrectly stowed drums Sources of Water Contamination

32  Corrosion of component surfaces  Degradation of fluid performance  Precipitation of additives  Oxidation of hydrocarbon fluids  Deterioration of fluid lubricating properties  Icing at low temperatures  Promotion of microbial growth  Corrosion of component surfaces  Degradation of fluid performance  Precipitation of additives  Oxidation of hydrocarbon fluids  Deterioration of fluid lubricating properties  Icing at low temperatures  Promotion of microbial growth Effects of Water Contamination

33 Reference: EPRI CS-4555 Turbine Oil Water Concentration (ppm) Oil Temperature (°F) Dissolved Water Free Water Solubility of Water in Oil Oil saturation point is affected by temperature:

34 ParticlesWater Acid Neut. No. Fluid Life (Hours) None Iron Copper Yes No Yes No Yes Effect of Water & Particulate on Oxidation

35 Acid Number Water only Iron & Water Copper & Water Copper Iron Clean and Dry Hours Contamination and Oil Breakdown

36 ADVANTAGES OF REMOVING WATER FROM OIL  Reduces oxidation, hydrolysis, and subsequent breakdown of the oil.  Acid buildup is eliminated or reduced substantially.  Prevents corrosion of components.  Reduces antifriction bearing wear.

37 ADVANTAGES OF REMOVING WATER FROM OIL  Reduces pump, valve, and bearing wear.  Reduces rate of filter plugging.  Prevents reduction of oil film strength by dilution with water.  Prevents substantial viscosity changes of the oil.

Viscosity Change due to water

39 How Water Concentrations Vary ppm = Hydraulic Gear Turbine Transformer Dry Wet Very Dry Dry Wet PetroTech Transformer Purification Level PetroTech Standard Purification Level

40 Bearing Life BEARING LIFE LOSS DUE TO WATER* Amount of Water in Oil Fatigue Life Ratio** 25 ppm ppm ppm0.52 *Data supplied by Timken Company and refers to tapped roller bearings **Fatigue Life Ratio is determined by testing bearings until half failed A ratio of 1.00 = the test point at which the 50% failure rate is achieved

41

42 Water Concentration’s Affect On Life Extension Factor ppm ,00012,5006,5004,5003,1252,5002, , ,0006,2503,2502,2501,5631,2501, ,0002,5001, ,0001, , ,

43 P ARTICULATE  Microscopic Wrecking Crew  Greater Damage Associated With Small Particles  Multiplication Effect “There is no single property of lubricating oil that challenges the reliability of machinery more than suspended particles.” – Jim Fitch of

44 ADVANTAGES OF REMOVING PARTICULATE FROM OIL  Reduces oxidation of oil since silt particles have been found to act as catalysts in accelerating the oxidation process.  Substantially increases life of hydraulic and lubricating system components.

46 Fluid Cleanliness Required for Typical Hydraulic Components ComponentsISO Code Servo Control Valves 16/14/11 Proportional Valves 17/15/12 Vane & Piston Pumps/Motors 18/16/13 Directional & Pressure Control Valves 18/16/13 Gear Pumps/Motors 19/17/14 Flow Control Valves, Cylinders 20/18/15 New Unused Fluid (Unfiltered) 20/18/15

47 How ISO Works

48 ISO Level Affect And Life Extension Factor ISO /2322/1920/1718/1517/1416/1315/12 14/11 25/2221/1819/1617/1416/1315/1214/11 13/10 24/2120/1718/1517/1416/1315/1214/1113/10 12/9 23/2019/1617/1415/1214/1113/10 11/8 22/1918/1516/1314/1113/1012/911/8 21/1817/1415/1213/1012/911/8 20/1716/1314/1113/1011/8 19/1615/1213/1011/8 18/1514/1112/9 17/1413/1011/8 16/1312/9 15/1211/8 14/1111/8 13/1011/8 12/911/8

49 Typical Particle Analysis Results Size (  m) # / ml >531,584 >1511,314 >257,369 >502,772 > Dirty Oil Size (  m) # / ml >516,324 >153,779 >251,147 >50116 >10018 Size (  m) # / ml >565 >157 >253 >501 >1000 New OilRECLAIMED OIL PetroTech Reclaimed Oil is Cleaner than New Oil.

50 ISO Ranges Vary by Oil Type ISO= 12/9 14/1116/1318/1520/1722/1924/2126/23 Hydraulic Gear Turbine Transformer Very clean clean dirty Clean dirty Very clean clean dirty Very clean dirty PetroTech Standard Cleaning Level

51 Typical Cleanliness Levels New Oil From Barrel 22/20/18 New Oil From Barrel 22/20/18 New System w/ Built-in Contaminants 23/22/20 New System w/ Built-in Contaminants 23/22/20

52 Typical Cleanliness Levels System With Typical Hydraulic Filtration 20/18/16 System With Typical Hydraulic Filtration 20/18/16 PetroTech System with  3 >200 Clearance Protection Filtration 14/13/11 PetroTech System with  3 >200 Clearance Protection Filtration 14/13/11

53 ADVANTAGES OF REMOVING GAS FROM OIL  Reduces oxidation and deterioration of oil.  Prevents foaming of oils that cause sponge—like responses.  Prevents formation of varnish and sludge through thermal cracking of oil by nitrogen fixing at high pressure.  Reduces possibility of cavitation and pump wear.

54 Gas Problems  Increases - Spongy, spring-like compression causing rejects  Causes Additive Depletion  Reduces Heat Transfer  Causes Nitration – Resulting in Oxidation and Varnish Formation  Increases TAN  Increases Oil Level - Artificially

55 Adiabatic Compression of Entrained Gas – NITRATION

58 Types of Gases in Lubrication Fluids The Three States that Gas Exists in Oil  Dissolved (8% – 10% gas by volume)  Entrained (Bubbles)  Foam

59 How Gas Concentrations Vary % = Hydraulic Gear Turbine Transformer No Gas Gas PetroTech Standard Cleaning Level No Gas Gas

Schematic

MORS-300

65 How Fast Would You like to Process? MORS 300 MORS 700MORS 1,800

66

67 Fully Mobile

68 Cost Factors  Loss of productivity costs due to:  Downtime for equipment maintenance  Component replacement costs due to:  High particulate content  Water  Gas  Cost of new oil  Disposal cost of used oil

69 NextStep™ Typical “Next Step” Dialysis Results:  Reduces Particulate Levels To ISO 15/13/10  Removes Water To 30ppm  Reduces Gas Content To 0.7% We think of our service as the logical “next step” for any company who is striving towards a world class proactive maintenance program Low Temperature Vacuum Distillation and Degasification Process

70 While the Machinery is Running  Flushes out Contaminants  Purifies oil in every Nook and Cranny, Crack and Crevasse  No Downtime  Less possibility of Mistakes –Wrong oil –Source Contamination

71 Why use PetroTech  Reduce Production Costs  Reduce Lubrication Acquisition Costs  Improve Product Quality  Maximize Equipment Uptime  Minimize Maintenance And Repair Costs  Improve Equipment Reliability  Reduce Environmental Impact  Reduce Environmental Costs

72 PetroTech Contact Information R. Haig Hachadoorian President PetroTech, Inc. PO Box Great Neck, NY – Office – Fax – Cell Corporate Headquarters PetroTech, Inc. PO Box Great Neck, NY – Office – Fax