PDV America, Inc. and Subsidiaries - Page 15

                                       - 15 -                                         
               When relocating intact tanks with internal roof support                
          columns, the contractor must install internal bracing to support            
          the floor and the roof.14  The internal bracing consists of a               
          steel pipe frame between the tank roof support columns that                 
          transfers the tank’s weight to the shell.  Without the internal             
          bracing the tank roof could fall down or the tank floor could               
          invert during the lifting process.                                          
               5.  Past Relocations of CITGO’s Tanks                                  
               Since 1993, CITGO has relocated two tanks.15  In 1993, CITGO           
          hired a professional tank lifter, Frank W. Hake, Inc., to                   
          relocate tank No. 44 at the East Chicago terminal approximately             
          1,000 feet using the hovercraft technology.  Tank No. 44 was a              
          55,000-barrel tank, with a height of 46 feet and a diameter of 92           
          feet.  CITGO relocated tank No. 44 in preparation for the                   
          transfer of the land to its former owner, Occidental Petroleum              
          Corp., for remediation of environmental hazards.  Two other                 
          smaller tanks were cut down and sold for scrap.                             
               CITGO cannot substantiate the amount it paid to Frank W.               
          Hake, Inc., to perform the relocation of tank No. 44 but                    
          estimated that the cost was $75,000.  This estimate does not                


               14If the tank is only lifted off the ground, but not moved,            
          the internal bracing may not be necessary.  Instead, the shell              
          can be lifted separately from the tank floor and tank roof under            
          each roof support column.                                                   
               15During the years at issue, CITGO did not make additions or           
          improvements to these tanks.                                                




Page:  Previous  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  Next

Last modified: May 25, 2011