PDV America, Inc. and Subsidiaries - Page 9

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          construction of the tanks’ foundations, CITGO paid Louis T.                 
          Pompeo & Son, Inc., $105,709.  The total amount CITGO expended              
          for the project was $1,644,532.                                             
               At the Vicksburg terminal, CITGO’s contractor, Baker Tank              
          Co./Altech, constructed tank No. 911 for $271,126.  The record              
          does not indicate how much CITGO paid for the construction of the           
          foundation.  The total amount CITGO expended for the project was            
          D.  Tank Corrosion, Inspection, and Repair                                  
               Because steel tends to rust, tank corrosion is inevitable.             
          In extreme corrosion cases, a pit will develop in the steel                 
          plates and lead to leakage.  Additionally, tank foundations may             
          settle at different levels under a tank, creating stress on the             
          tank shell and causing the tank to lose its original shape.  In             
          order to combat these problems, CITGO has an extensive program to           
          prevent and monitor corrosive damage to the tanks and to monitor            
          structural problems due to foundation settlement.                           
               Pursuant to its inspection program, at least every 10 years,           
          CITGO cleans and inspects each tank.  CITGO conducts inspections            
          visually and with electronic devices that gauge the floor plate             
          depth.  In some cases, CITGO lifts the tanks into the air to                
          provide a better view of the tank bottom or to inspect the tank             

               11Tank No. 9 at the Vicksburg terminal is approximately 49             
          feet tall, with a cone roof, an internal floating roof, and a               
          diameter of 67 feet.                                                        

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Last modified: May 25, 2011