Energy Transfer 2012 Annual Report Download - page 25

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• The Southwest United States pipeline system consists of approximately 2,950 miles of crude oil trunk pipelines and
approximately 300 miles of crude oil gathering pipelines in Texas. The Texas system is connected to the Mid-Valley pipeline,
the West Texas Gulf pipeline, other third-party pipelines and our Nederland Terminal.
• The Oklahoma crude oil pipeline and gathering system contains approximately 850 miles of crude oil trunk pipelines and
approximately 200 miles of crude oil gathering pipelines. We have the ability to deliver substantially all of the crude oil
gathered on our Oklahoma system to Cushing, Oklahoma.
• The Midwest United States pipeline system consists of approximately 1,000 miles of a crude oil pipeline that originates in
Longview, Texas and passes through Louisiana, Arkansas, Mississippi, Tennessee, Kentucky and Ohio, and terminates in
Samaria, Michigan. This pipeline provides crude oil to a number of refineries, primarily in the midwest United States.
Sunoco Logistics also owns approximately 100 miles of crude oil pipeline that runs from Marysville, Michigan to Toledo, Ohio,
and a truck injection point for local production at Marysville. This pipeline receives crude oil from the Enbridge pipeline system
for delivery to refineries located in Toledo, Ohio and to Marathon's Samaria, Michigan tank farm, which supplies its refinery in
Detroit, Michigan.
Sunoco Logistics' pipelines access several trading hubs, including the largest trading hub for crude oil in the United States located
in Cushing, Oklahoma, as well as other trading hubs located in Midland, Colorado City and Longview, Texas. Our crude oil
pipelines also deliver to and connect with other pipelines that deliver crude oil to a number of third-party refineries.
Crude Oil Acquisition and Marketing
Sunoco Logistics' crude oil acquisition and marketing activities include the gathering, purchasing, marketing and selling of crude
oil primarily in the mid-continent United States. The operations are conducted using approximately 200 crude oil transport trucks
and third-party assets and approximately 120 crude oil truck unloading facilities. Sunoco Logistics' crude oil truck drivers pick
up crude oil at production lease sites and transport it to various truck unloading facilities on our pipelines and third-party pipelines.
Third-party trucking firms are also retained to transport crude oil to certain facilities.
Terminal Facilities
Sunoco Logistics' 41 active refined products terminals receive refined products from pipelines, barges, railcars, and trucks and
distribute them to Sunoco and to third parties, who in turn deliver them to end-users and retail outlets. Terminals are facilities
where products are transferred to or from storage or transportation systems, such as a pipeline, to other transportation systems,
such as trucks or other pipelines. The operation of these facilities is called “terminalling.” Terminals play a key role in moving
product to the end-user markets by providing the following services: storage; distribution; blending to achieve specified grades
of gasoline and middle distillates; and other ancillary services that include the injection of additives and the filtering of jet fuel.
Typically, Sunoco Logistics' refined products terminal facilities consist of multiple storage tanks and are equipped with automated
truck loading equipment that is operational 24 hours a day. This automated system provides controls over allocations, credit, and
carrier certification.
• The East Boston Terminal is a refined products terminal, located in East Boston, Massachusetts, that receives refined products
from affiliates of ConocoPhillips. The terminal is the sole service provider to Logan International Airport under a long-term
contract to provide jet fuel. The terminal includes a 10-bay truck rack and total active storage capacity for this facility is
approximately 1 million barrels.
• The Eagle Point Tank farm is located in Westville, New Jersey and consists of approximately 5 million barrels of active storage
for clean products and dark oils.
• The Southwest Terminal is a crude oil and refined products terminal located in Bay City, Texas. The terminal has a total
capacity of less than half of a million barrels.
• A butane blending business generates profits by adding less expensive normal butane to higher priced gasoline, while complying
with regional and seasonally variable specifications for maximum vapor pressure. The business provides terminal and pipeline
operators with the use of proprietary automated blending systems and butane supply to optimize butane blending in pipelines
and at refined products terminals.
Sunoco Logistics' refined products terminals derive revenues from terminalling fees paid by customers. A fee is charged for
receiving refined products into the terminal and delivering them to trucks, barges, or pipelines. In addition to terminalling fees,
Sunoco Logistics generates revenues by charging customers fees for blending services, including ethanol and biodiesel blending,
injecting additives, and filtering jet fuel. Sunoco Logistics' refined products pipelines supply the majority of its refined products
terminals, with third-party pipelines and barges supplying the remainder.
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