1. 1

2. 2 PetroTech Clients

3. 3 The PetroTech System  Filtration  Vacuum distillation  Degasification

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

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

6. 6 A PPLICATIONS

7. 7 M INING

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

10. 10 A UTOMOTIVE

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

12. Robotic Assembly Hydraulics

14. 14 S TEEL

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

16. Rolling Mill

17. 17 R EFINERIES

18. 18 Refinery Applications  Steam Turbines  Gas Turbines  Transformers

20. 20 P ULP & P APER

21. 21 Pulp & Paper Applications

22. 22 P OWER U TILITIES

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

25. 25 P RIMARY M ETALS

26. 26 M ILITARY

28. 28 Oil Never Wears Out !

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

30. 30 W ATER States That Water Exists in Oil  Dissolved Water - typically  100ppm @100°F  600ppm @140°F  Emulsified –.5% to 4%  Free Water

31. 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. 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. 33 Reference: EPRI CS-4555 Turbine Oil Water Concentration (ppm) Oil Temperature (°F) 75 175 125 50 100 150 200 Dissolved Water Free Water Solubility of Water in Oil Oil saturation point is affected by temperature:

34. 34 ParticlesWater Acid Neut. No. Fluid Life (Hours) None Iron Copper Yes No Yes No Yes 0.17 0.90 0.65 8.10 0.89 11.20 3500+ 400 3000 100 Effect of Water & Particulate on Oxidation

35. 35 Acid Number Water only Iron & Water Copper & Water Copper Iron Clean and Dry Hours 12.0 10.0 1.0 0.8 0.6 0.4 1000 2000 3000 0.2 0.0 Contamination and Oil Breakdown

36. 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. 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.

38. Viscosity Change due to water

39. 39 How Water Concentrations Vary ppm = 510202550100150300 Hydraulic Gear Turbine Transformer Dry Wet Very Dry Dry Wet PetroTech Transformer Purification Level PetroTech Standard Purification Level

40. 40 Bearing Life BEARING LIFE LOSS DUE TO WATER* Amount of Water in Oil Fatigue Life Ratio** 25 ppm2.59 100 ppm1.00 400 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. 41

42. 42 Water Concentration’s Affect On Life Extension Factor ppm2345678910 50,00012,5006,5004,5003,1252,5002,000150001,000782 25,0006,2503,2502,2501,5631,2501,000750500391 10,0002,5001,300900625500400300200156 5,0001,25065045031325020015010078 2,500625325225156125100755039 1,00025013090635040302016 500125654531252015108 250633323161310854 10025139654322

43. 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 www.OilAnalysis.com

44. 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. 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. 47 How ISO Works

48. 48 ISO Level Affect And Life Extension Factor ISO2345678910 26/2322/1920/1718/1517/1416/1315/12 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. 49 Typical Particle Analysis Results Size (  m) # / ml >531,584 >1511,314 >257,369 >502,772 >100116 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. 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. 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. 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. 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. 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. 55 Adiabatic Compression of Entrained Gas – NITRATION

58. 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. 59 How Gas Concentrations Vary % =0 1 234567 Hydraulic Gear Turbine Transformer No Gas Gas PetroTech Standard Cleaning Level No Gas Gas

63. Schematic

64. MORS-300

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

66. 66

67. 67 Fully Mobile

68. 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. 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. 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. 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. 72 PetroTech Contact Information R. Haig Hachadoorian President PetroTech, Inc. PO Box 220162 Great Neck, NY 11022 516-454-7600 – Office 516-829-5791 – Fax 516-850-9000 – Cell haig@PetroTech.us Corporate Headquarters PetroTech, Inc. PO Box 220162 Great Neck, NY 11022 516-454-7600 – Office 516-829-5791 – Fax www.PetroTech.us