PBF Energy 2012 Annual Report Download - page 23

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We cannot predict what additional health, safety and environmental legislation or regulations will be
enacted or become effective in the future or how existing or future laws or regulations will be administered or
interpreted with respect to our operations. Compliance with more stringent laws or regulations or adverse
changes in the interpretation of existing requirements or discovery of new information such as unknown
contamination could have an adverse effect on the financial position and the results of our operations and could
require substantial expenditures for the installation and operation of systems and equipment that we do not
currently possess.
GLOSSARY OF SELECTED TERMS
Unless otherwise noted or indicated by context, the following terms used in this Annual Report on
Form 10-K have the following meanings:
“ASCI” refers to the Argus Sour Crude Index, a pricing index used to approximate market prices for sour,
heavy crude oil.
“Bakken” refers to both a crude oil production region generally covering North Dakota, Montana and
Western Canada, and the crude oil that is produced in that region.
“barrel” refers to a common unit of measure in the oil industry, which equates to 42 gallons.
“blendstocks” refers to various compounds that are combined with gasoline or diesel from the crude oil
refining process to make finished gasoline and diesel; these may include natural gasoline, FCC unit gasoline,
ethanol, reformate or butane, among others.
“bpd” refers to an abbreviation for barrels per day.
“CAPP” refers to the Canadian Association of Petroleum Producers.
“catalyst” refers to a substance that alters, accelerates, or instigates chemical changes, but is not produced
as a product of the refining process.
“coke” refers to a coal-like substance that is produced from heavier crude oil fractions during the refining
process.
“complexity” refers to the number, type and capacity of processing units at a refinery, measured by the
Nelson Complexity Index, which is often used as a measure of a refinery’s ability to process lower quality crude
in an economic manner.
“crack spread” refers to a simplified calculation that measures the difference between the price for light
products and crude oil. For example, we reference (a) the 2-1-1 crack spread, which is a general industry standard
that approximates the per barrel refining margin resulting from processing two barrels of crude oil to produce one
barrel of gasoline and one barrel of heating oil or ULSD, and (b) the 4-3-1 crack spread, which is a benchmark
utilized by our Toledo refinery that approximates the per barrel refining margin resulting from processing four
barrels of crude oil to produce three barrels of gasoline and one-half barrel of jet fuel and one-half barrel of
ULSD.
“Dated Brent” refers to Brent blend oil, a light, sweet North Sea crude oil, characterized by an API gravity
of 38° and a sulfur content of approximately 0.4 weight percent that is used as a benchmark for other crude oils.
“distillates” refers primarily to diesel, heating oil, kerosene and jet fuel.
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