PBF Energy 2013 Annual Report Download - page 39

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as a result of these audits may also subject us to interest and penalties. There can be no certainty that our federal,
state, local or foreign taxes could be passed on to our customers.
Our rapid growth may strain our resources and divert management’s attention.
We were a development stage enterprise prior to our acquisition of Paulsboro on December 17, 2010. With
the further acquisition of Toledo, the re-start of Delaware City, our IPO and construction of our rail facilities, we
have experienced rapid growth in a short period of time. Continued expansion may strain our resources and force
management to focus attention from other business concerns to the development of incremental internal controls
and procedures, which could harm our business and operating results. We may also need to hire more employees,
which will increase our costs and expenses.
We rely on Statoil and MSCG, over whom we may have limited control, to provide us with certain volumetric
and pricing data used in our inventory valuations.
We rely on Statoil and MSCG to provide us with certain volumetric and pricing data used in our inventory
valuations. Our limited control over the accuracy and the timing of the receipt of this data could materially and
adversely affect our ability to produce financial statements in a timely manner.
Changes in our credit profile could adversely affect our business.
Changes in our credit profile could affect the way crude oil suppliers view our ability to make payments
and induce them to shorten the payment terms for our purchases or require us to post security or letters of credit
prior to payment. Due to the large dollar amounts and volume of our crude oil and other feedstock purchases, any
imposition by our suppliers of more burdensome payment terms on us may have a material adverse effect on our
liquidity and our ability to make payments to our suppliers. This, in turn, could cause us to be unable to operate
one or more of our refineries at full capacity.
Changes in laws or standards affecting the transportation of North American crude oil by rail could significantly
impact our operations, and as a result cause our costs to increase.
Investigations into recent rail accidents involving the transport of crude oil have prompted government
agencies and other interested parties to call for increased regulation of the transport of crude oil by rail including
in the areas of crude oil constituents, rail car design, routing of trains and other matters. If changes in law, regulations
or industry standards occur that result in requirements to reduce the volatile or flammable constituents in crude
oil that is transported by rail, alter the design or standards for rail cars, change the routing or scheduling of trains
carrying crude oil, or any other changes that detrimentally affect the economics of delivering North American
crude oil by rail to our refineries, our costs could increase, which could have a material adverse effect on our
financial condition, results of operations and cash flows.
We could incur substantial costs or disruptions in our business if we cannot obtain or maintain necessary permits
and authorizations or otherwise comply with health, safety, environmental and other laws and regulations.
Our operations require numerous permits and authorizations under various laws and regulations. These
authorizations and permits are subject to revocation, renewal or modification and can require operational changes to
limit impacts or potential impacts on the environment and/or health and safety. A violation of authorization or permit
conditions or other legal or regulatory requirements could result in substantial fines, criminal sanctions, permit
revocations, injunctions, and/or facility shutdowns. In addition, major modifications of our operations could require
modifications to our existing permits or upgrades to our existing pollution control equipment. Any or all of these
matters could have a negative effect on our business, results of operations and cash flows.
We may incur significant liability under, or costs and capital expenditures to comply with, environmental and
health and safety regulations, which are complex and change frequently.