Decades of Excellence 75th Anniversary of Phillips 66 Lake Charles Refinery Book by ParkerBrandCreative

TH ANNIVERSARY OF PHILLIPS 66 LAKE CHARLES REFINERY

1941

2012

Decades of Excellence â&#x20AC;&#x201C; 75th Anniversary of Phillips 66 Lake Charles Refinery All rights reserved. No part of this book may be reproduced or transmitted in any form by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, now known or to be invented, without permission in writing from Phillips 66, Lake Charles Refinery, P.O. Box 37, Westlake, LA 70669. Printed and bound in the United States. Design by Parker Brand Creative Services. Layout and research by Starla Coody. Editing by Starla Coody and Megan Hartman. Phillips 66 would like to recognize the following people who contributed memorabilia items and detail for this book: Shelley Blocker, David Bryant, Mark Dardeau, Ethel Fields, Shane Goad, John Hartman, Laurie Hatton, Jonathan Hebert, Pam Jones, Lindsay Landry, Kirk Marceaux, Bennie Moore, Monica Sanders, Karl Thomas, and Constance Weldon. All the photographs and historical items appear courtesy of Conoco Inc., ConocoPhillips Inc., Phillips 66, and McNeese State University Archives. Printing and binding by Lightning Press First Printing 2016

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LAKE

CHARLES RE

FINERY

decades of excellence 75th Anniversary of Phillips 66 Lake Charles Refinery

Dedicated to the countless individuals across the decades who have made the Phillips 66 Lake Charles Manufacturing Complex into a major energy provider for the United States. Phillips 66 is improving lives because of your, and your hard work has paved the way to success for future generations. Without your energy and professionalism we would not be where we are today, 75 years strong.

Ta b l e o f C o n t e n t s Lake Charles Refinery History............................................................. 09 Conocoâ&#x20AC;&#x2122;s Corporate 100th Year Anniversary.......................................20 Lake Charles Refinery Modernization Project..................................... 21 Conoco & Phillips 66 Merger............................................................... 27 Becoming Phillips 66............................................................................ 29 Union Labor...........................................................................................31 Working as a Team. . .............................................................................. 33 Environmental......................................................................................40 Safety.................................................................................................... 42 Community Engagement. . ....................................................................44 People................................................................................................... 52 Lake Charles Refinery 75th Year Anniversary.. ..................................... 54

L A K E C H A R L E S R E F I N E RY

History

Marland Control Lab in Pona City - 1926

According to abstracts and deeds filed in 1827 in Opelousas, then the capital of the Louisiana Territory, the land located in southwest Louisiana between the Sabine and Rio Hondo Rivers was surveyed in 1824. The surveyors, in their handwritten documents, described the area immediately west of the Rio Hondo as having dense groves of pecan, blackgum, oak and other trees measuring up to four feet in diameter. The Spanish-named Rio Hondo became the Frenchnamed Quelqueshue and early in the 20th century became the Anglicized-Acadian named Calcasieu as we know it today. Over 100 years would lapse before that land would change from forestry to industrial use and the Phillips 66 refinery would be located there. The company now known as “Phillips 66” had its beginnings in 1875 when Isaac E. Blake, a former oil field worker from Pennsylvania, formed Continental Oil and Transportation Company in Ogden, Utah. From the beginning transportation was fundamental as they transported coal, oil, kerosene, candles, and greases from the East Coast and sold them in the Northwestern states. By 1878 the operation had expanded throughout the Rocky Mountain area and along the West Coast, including sales into Mexican, Samoan, Japanese, Hawaiian and Canadian markets. In 1885, Continental became a part of Standard Oil Company (John D. Rockefeller’s company). Meanwhile, in the early 1900s Ernest W. Marland, lawyer and student of geology, and considered a maverick oilman was attracted to oil drilling near Ponca City, Ok. His first leases in Oklahoma were on the 101 Ranch. The ranch consisted of “Wild West” shows and rodeos, all on the Ponca Indian Reservation. By 1917 he had created the Marland Refining Company and then added marketing to his business plan. A red triangle became Marland’s official trademark. 9

The refinery was considered Lake Charles oldest war plant and immediately began shipping blending agents to England. Due to a new war, with the December 7 attack on Pearl Harbor, production was brought up to full capacity for the war effort. For 24 hours a day, the refinery produced isopentane and alkylate, the two main blending agents for the different grades of aviation gasolines that our armed forces required. When the United States entered the war following the bombing of Pearl Harbor in 1941, the need for wartime supplies focused new attention on petrochemicals – launching in effect a new industry. High-octane aviation fuel was a wartime necessity and area of the war effort in which Conoco’s capacity for innovation sped Allied victory. Conoco pioneered and produce the key blend stocks of the fuel that were needed for high-altitude and high-performance war planes. Allied forces were also in need of aviation gasoline, diesel fuel, kerosene, heating oil, and fuel oil which Continental supplied.

Lab and Refinery - 1940

In 1913 a Supreme Court ruling dissolved most of the holdings of Standard Oil Company and Continental Oil was independent again. They identified themselves by the Continental Soldier trademark. For years they had the distinction of being the exclusive supplier of gasoline and lubricants in Yellowstone National Park. Several mergers and acquisitions transpired beginning with the acquisition of United Oil Company in 1916 making Continental a producer and refiner for the first time. In 1924 Continental merged with Mutual Oil Company expanding operations from Canada to Mexico, from the Mississippi to the West Coast. In 1928 Marland resigned as President and was replaced with Dan Moran. The new Continental Oil Company operated a total of 2,294 marketing stations and refining capacity for the company was 66,750 BPD.

LOUISIANA HOME FOR LAKE CHARLES REFINERY In 1936, Dan Moran struck a deal with Lake Charles businessman, Elmer Shutts, and purchased a large portion of the land on which the Phillips 66 refinery now stands. On January 27, 1940 Governor Earl K. Long signed the papers to grant the Oklahoma company a state tax exemption for 10 years in order to attract outside industry to Louisiana. The refinery was built on acreage alongside the 905,000 barrel capacity tank farm that had been built in Westlake, during 1937 – 1940. Construction was begun in 1940 and in June 1941 the Continental Oil Company, under the direction of J.E. Fenex, Sr., a Wyoming native. A 7,500 barrels per day (BPD) refinery on the banks of the Calcasieu River in Westlake, LA. was brought on stream. Initially crude oil from the Tepetate Field in Acadia Parish, Ville Platte Field in Evangeline Parish, and Abbeville Field in Vermillion Parish, along with Continental Oil Company wells in Southwest Louisiana were transported and processed at the refinery.

The refinery was built at a cost of $4.5 million, and was the first petroleum products manufacturer in Calcasieu Parish. It provided employment for 100 people, with an annual payroll of approximately $243,000. During the next 75 years the refinery grew in size and capacity kept pace with advancing petroleum refining technology.

The first issue of The Conoco Magazine was published in July 1929.

In 1946 capacity was increased to 12,500 BPD.

Continental Oil Company - 1946

1950

Reformer Unit - 1950

CONTINENTAL OIL COMPANY JOB 6860 AUGUST 28, 1951 LOOKING NORTHWEST ACROSS SITE WITH THE T.C.C. UNIT AREA IN FOREGROUND

CONTINENTAL OIL COMPANY JOB 6860 SEPTEMBER 28, 1951 LOOKING NORTHEAST ACROSS THE SITE

CONTINENTAL OIL COMPANY JOB 6860 APRIL 29, 1952 LOOKING NORTHEAST ACROSS THE SITE FROM SOUTHEAST CORNER

CONTINENTAL OIL COMPANY JOB 6860 NOVEMBER 28, 1951 LOOKING NORTHWEST ACROSS SITE WITH THE T.C.C. UNIT AREA IN FOREGROUND

CONTINENTAL OIL COMPANY JOB 6860 DECEMBER 27, 1951 LOOKING NORTHEAST ACROSS THE SITE

CONTINENTAL OIL COMPANY JOB 6860 JANUARY 25, 1952 VIEW FROM TOP OF TANK 69 LOOKING SOUTH ACROSS SITE

CONTINENTAL OIL COMPANY JOB 6860 JULY 28, 1952 LOOKING SOUTH ACROSS SITE FROM TOP OF CONOCO TANK 69 NORTH OF SITE

CONTINENTAL OIL COMPANY JOB 6860 DECEMBER 26, 1952 LOOKING NORTHEAST FROM FRONT OF CONOCO MECHANICAL SHOPS BUILDING SHOWING SOME OF THE NEW FACILITIES INSTALLED IN THE EXISTING REFINERY AND NOW IN OPERATION

CONTINENTAL OIL COMPANY JOB 6860 JANUARY 29, 1953 LOOKING SOUTHWEST ACROSS SITE FROM PLATFORM ON REACTOR STRUCTURE IN THE CATALYTIC POLYMERIZATION UNIT

CONTINENTAL OIL COMPANY JOB 6860 MARCH 30, 1953 LOOKING NORTHEAST ACROSS SITE FROM NEAR SOUTHWEST CORNER OF SITE

CONTINENTAL OIL COMPANY JOB 6860 FEBRUARTY 26, 1953 LOOKING SOUTH AT NEW COMPRESSOR HOUSE IN ALKYLATION UNIT FROM ROAD NORTH OF ALKYLATION UNIT

CONTINENTAL OIL COMPANY JOB 6860 APRIL 30, 1953 LOOKING NORTHEAST ACROSS SITE FROM PLATFORM IN CONDENSER STRUCTURE IN AROMATICS EXTRACTION UNIT

In 1953 major processing units were added to the refinery including catalytic cracking, catalytic polymerization, catalytic reforming, and aromatic extraction. Capacity increased to 55,000 BPD. The refinery staff increased to 404 employees.

THE 1950â&#x20AC;&#x2122;S In 1955, Continental joined Union Stockyard and Transit Company of Chicago to form the Constock Liquid Methane Corporation and begin researching methods for the commercial transportation of a small experimental tanker, Methane Pioneer, to deliver liquefied gas to Great Britain. Plans were laid for the building of liquefaction plants in supply areas, the construction of tankers to transport the gas in liquid form, and the storage and sale of gas at the points of destination. The first shipment by Conoco was from Lake Charles, LA, to the Canvey Island Terminal in the Thames Estuary of England. Hurricane Audrey paid a visit to the Gulf of Mexico June 25, 1957 striking first at offshore operations and then entered the mainland at Cameron, LA and proceeded on through Lake Charles where the refinery and other installations were located. The death toll was upward of 300, leaving many thousands homeless and without possessions. The CATC group had been formed by Conoco, Atlantic, Tidewater, and Cities Service to operate in the Gulf of Mexico. CATC crew members were able to respond quickly. The Lafourche, one of the groupâ&#x20AC;&#x2122;s work boats, was the first to navigate into the town of Cameron after the storm. With another crew boat, the Offshore Orleans, they transported food, medical supplies, doctors, and nurses around the clock. CATC also furnished two helicopters to assist with relief efforts. Medical personnel from the Lake Charles refinery assisted in treating the injured and distributed medical supplies from plant locations. The refinery was able to put into effect its previously rehearsed disaster plan, resulting in an orderly shut-down and the manning of emergency stations. As a result, the refinery went back on stream within hours after Hurricane Audrey had passed. 15

C o n o c o wa s a n a m e becoming known around the world

In 1957 a 400 ton per day delayed coking unit and coke calcining unit for the production of premium grade coke were added to the refinery process. Conoco was a name becoming known around the world. Yet, the company almost lost its right to use the long-standing trademark, Conoco, in Europe. Conoco had been registered in Holland. It wasnâ&#x20AC;&#x2122;t until 1958 that the company was able to buy the trademark and began an active program to protect the Conoco mark throughout the world. The company had many other trademarks to protect including ALFOL (a biodegradable intermediate) that began at the Lake Charles refinery. It was the commercial manufacture of alcohols from petroleum and was used in the manufacture of detergents and plasticizers. In 1959 the refinery expanded by adding an 11,500 BDD naptha hydrogen-desulfurization and catalytic reforming unit. The company became known as a helpful source of free maps and other travel aids through the Conoco Travel Bureau. The quality of Conocoâ&#x20AC;&#x2122;s motor oil was reflected in its selection as the first off-the-shelf brand used in Indianapolis 500 race cars.

Catalytic Reformer

Safety Building - 1962

Pictured are Conoco laboratory technicians in Lake Charles creating synthetic products from crude oil including Alfol and Nalkylene Alkylate. Together these products helped Conoco capture 25 percent of the synthetic detergent material market in 1964 making it the leading supplier in the United States. 18

As the companyâ&#x20AC;&#x2122;s image developed, people began to refer to Continental Oil Company as Conoco. The familiar red triangle was retired and Conoco adopted the red Conoco â&#x20AC;&#x153;capsuleâ&#x20AC;? as its official trademark in 1970. In 1971, the refinery completed revisions to crude topping and other downstream processing units which increased crude though put to 85,000 BPD.

In 1966 its capacity had increased to 74,000 BDD with the crude heater revisions.

C O NO C O C E L E B R AT E S

100th Anniversary Conoco observed its 100th anniversary in 1975. By then the Lake Charles refinery had grown 12 times in size to a capacity of 83,000 BPD. It produced gasoline, propane, butane, jet fuel, heating oil, diesel fuel, kerosene, carbon black oil, coke and RP-1 rocket fuel used by NASA to power the Saturn Rocket in the Apollo and Skylab space mission. At that time Conoco was represented in Lake Charles by a refinery, a chemical plant, a barge terminal, a transportation terminal, a carbon black plant, and a gas processing plant. In 1977, construction was completed on a high technology 30,000 BPD fluid catalytic cracking unit at a cost of $35 million. By 1980, capacity had increased to 156,600 BPD. That wasn’t enough. 1980 was a very significant year for the refinery. Conoco announced the largest refining modernization project in the company’s history. In 1981, Conoco was purchased and became a subsidiary of the DuPont Company, the nation’s largest chemical manufacturer. Acreage was purchased and a new dock and tankage was built at Pecan Grove to support strategic storage and transport of DuPont’s methanol. In ___, Conoco detached from DuPont and again became its own New York Stock Exchange trading company. The new Conoco medical clinic was opened in November 1982. The modern clinic had two examination rooms, a treatment room, an observation room and a procedure room. Then, in 1985, an even newer medical center was constructed. The new refinery office building was also completed. It contained 50 new offices as well as two conference rooms. Other features were a drafting section, courtyard and reception area. In 1982, operator training was improved with new process simulatortrainers. The small analog type computer allowed operators to learn and practice actual skills and techniques through individual handson instruction without interrupting the operation of an actual unit or risking an upset. 20

Days Gone By

L A K E C H A R L E S R E F I N E RY

Modernization Project

The modernization project of the Lake Charles refinery took place in 1983 at a cost of more than $300 million – 73 times more than the cost of the original refinery. It boosted permanent employment at the refinery to almost 700 people with an annual payroll of $25 million. In addition to increasing the number of employees, the modernization project provided 1,700 contractor jobs during the peak of building activity. Conoco decided to embark on this massive construction project, which took place during a nationwide economic slowdown, to enable the Lake Charles refinery to process lower valued, heavier, high sulfur crude oils. These oils made up a significant portion of the world’s known oil reserves.

Conoco expanded many units to take advantage of its position as a world leader in the production of premium petroleum coke. Premium coke is used in the manufacture of steel. Fuel-grade coke is used as power plant or industrial fuel. The high-sulfur crude/residual conversion project enabled Conoco’s Lake Charles refinery to refine up to 100,000 BPD of low value, higher-sulfur crude oil plus 60,000 BPD of high-value, sweet crude, and to upgrade the “bottom of the barrel” residual materials into usable lightend products such as diesel and gasoline. Gasoline production at the refinery was increased to 6,000 BPD. Not only had gasoline production been increased, but the average octane rating of the total gasoline pool also had been greatly improved. In addition, production of distillate

products (diesel, kerosene, and jet fuel) were increased by 63 percent. With project completion, the Lake Charles refinery became the most flexible in Conoco’s refining system, able to make more efficient use of a valuable natural resource – crude oil. Nomex had just been introduced and in 1983 and all employees were required to wear Nomex garments when they entered the process units. In 1984, the Lake Charles refinery acquired card-access security and built a new parking lot that increased parking capacity by 500 vehicles.

1991 marked the golden anniversary of the refinery As 1991 marked the 50th anniversary of the Lake Charles refinery, yet another major milestone was being completed. The Advanced Control Project would consolidate refinery control and would reflect a fundamental change in the organization of the refinery and how it was operated.

50th Anniversary Edition of By-You-Log Magazine

Transport of Hydrocracker Unit

In 1994, plans were announced for an expansion which was to be the site for a Lube Oil Hydrocracker joint venture with Pennzoil. The expansion, when completed, employed an additional 200 people.

In 1996 the Lake Charles refinery had the companyâ&#x20AC;&#x2122;s only oxygenate production unit, capable of producing 2,000 BPD of MTBE.

Excel Paralubes

Domestic Marine Operations

To further support the ever increasing crude supply requirement and transport in an environmentally sound way, the Conoco Marine Departmentâ&#x20AC;&#x2122;s new fleet of double hull tankers were built and utilized. They transited waterways including the Gulf Coast Canal from Brownsville, TX to St. Marks, FL and along the lower Mississippi and Arkansas Rivers to Tulsa, OK. Employees at both the refinery and Clifton Ridge docks enjoyed years of working with these waterborne professionals. In 1997, Conoco finished a $750 million gross investment in a lube oil hydrocracker plant. It was the single largest downstream Conoco project to date. The project integrated the plant with a joint venture called Excel Paralubes (a 50-50 project with Atlas Processing, a Pennzoil subsidiary) to produce lube and base oils. 25

Clifton Ridge Marine Terminal

SAP software was delivered and implemented in 1998. It allowed the company to streamline processes and transform data into useful information. This helped business leaders plot effective business strategy more quickly. The most immediate benefit was to the Instrumentation group who had been experiencing problems entering Honeywell data into MPAC. Global SAP wasn’t introduced to the entire refinery until 2004. In October 1999, the refinery was finishing preparation for Y2K, which had begun in 1998. 26

Extensive work was done with critical suppliers and customers to insure that operations would continue in a safe manner. There was also exhaustive testing of systems and hardware to insure that everything went smoothly. Thanks to the preparation, the new century rolled in smoothly and became one of the biggest “nonevents” in history. In addition to performing periodic maintenance turnarounds the mechanical “tie-ins” required to bring on line the Petrozuata Syncrude Project were completed in 2000. This project enabled

the refinery to process lower cost Venezuelan heavy oil. Nearly 54 tie-ins were required to support the installation of more than 9,000 feet of new pipe. Seventeen new pieces of major equipment were installed while 37 additional pieces of equipment were modified or removed. In August 2001, the #3 Dock was modified to replace wooden elements with concrete and steel fabrication. Over the next two years, Docks #1 and #2 were also modified. All three docks required upgrading the dock’s loading arms.

C O NO C O & P H I L L I P S 6 6

Merger

In 2002, Conoco and Phillips 66 officially merged to become ConocoPhillips. The ConocoPhillips merger brought together two medium-sized companies to become the top sixth largest energy companies in the world. In Lake Charles, the merger brought opportunities to draw on strengths of new team mates, like Alliance refinery south of New Orleans. Site security upgrades were completed in 2003. Installation consisted of fast-acting hydraulically actuated bollards at nine of the facility gates. During 2003, new positions, such as Shift Team Leads, were introduced. The Six Sigma process was beginning to show real improvements at the refinery. In 2005, a new S Zorb unit capable of making low sulfur gasoline and bringing the Lake Charles refinery in compliance with the EPAâ&#x20AC;&#x2122;s Tier II sulfur in gasoline regulations was completed.

hurricane r i ta

On September 24, 2005, Hurricane Rita blew into town requiring evacuation of all Lake Charles refinery personnel and residents in southwest Louisiana and eastern Texas. Employees scrambled to find motels as far away as Tennessee. After the storm, employees returned with a dual purpose: to secure their homes and clean up the plant to get it running again. The start-up process was difficult, but the spirit of determination prevailed to keep everyone pumped and focused on problem solving and safely getting back on line. Meals were supplied, free housing was arranged, and gas certificates were given to employees and contractors who returned to work during the first difficult week. Food lines were long, but many employees used the time to compare notes on evacuation experiences and home damage. In addition, the refinery donated $100,000 in gasoline to emergency personnel and employees before and after Rita ConocoPhillips rented hotel rooms for more than 250 employees, loaned generators to area hotels during the power outage, and provided them employees meals for two weeks.

B E C O M I NG

Phillips 66

In 2008, the fall turnaround included the change out of the #10 Reformer Packinox Exchanger. The new Packinox vessel journey began with the order in 2007. The unit was constructed in France and journeyed across the ocean by ship and barge, during hurricane season, to Westlake and arrived in September 2008. Consistent with focus on value creation for its shareholders, ConocoPhillips approved pursuing the separation of the company businesses into two stand-alone, publicly traded corporations in 2011. On May 1, 2012 the repositioning became complete and Phillips 66 began trading on the New York Stock exchange under the ticker PSX.

The demolition and upgrading of the barge docks 1 & 2 went into full swing in 2013. This was an opportunity to improve the terminal’s infrastructure reliability for operational needs and increase the safety and efficiency of marine transport. Located next to the shoreline at the Westlake Barge docks was a formidable montage of pipes. Recognizing that the outof-service piping structure posed a potential environmental hazard, the decision was made in 2014 to replace it. The piping had been out of service for over 10 years. Over 37,000 feet of out-of-service piping was removed. That equates to over seven miles of piping. One significant hurdle was removing the remaining product in the lines without spilling any in the river, as the pipelines were in poor condition and some were on the verge of failing. The project was safely completed and the environment was maintained.

The refinery currently sits on approximately 690 acres and employees over 1,100 employees and on- contractors. It has a total throughput capacity of 285,000 BPD. Within the facilities are crude distillation, a fluid catalytic cracker, alkylation, a delayed coker and hydrodesulfurization units that enable the refinery to produce gasoline and diesel fuels, home heating oil and fuel-grade petroleum coke. The facilities also include a specialty coker and calciner, which produce graphite petroleum coke for the steel industry. The Lake Charles refinery in combination with Excel Paralubes is referred to as the Lake Charles Manufacturing Complex. Lake Charles produces a high percentage of gasoline and aviation fuels, along with home heating oil. The majority of its refined products are distributed by truck, railcar, barge or major common-carrier pipelines in the southeastern and eastern United States. In addition, refined products can be sold into export markets through the refinery’s marine terminal.

Based on 2016 data Phillips 66 Lake Charles Manufacturing Complex contributes significantly to local-level job creation, earning and output (total economic activity) for our surrounding community. This includes the direct, indirect and induced economic impacts to the local economy associated with the refinery’s operation and turnaround phases.

ECONOMIC FORCE IN SOUTHWEST LOUISIANA • • • •

770 refinery employees in Southwest Louisiana $85 million dollars in payroll & benefits $9.6 million dollars in Calcasieu Parish taxes $71 million dollars in materials & services with LA companies

Union Labor Unions began forming in the mid-19th century in response to the social and economic impact of the industrial revolution. National labor unions began to form in the post-Civil War Era. In 1941, the Independent Union was originally organized by a group of Lake Charles Refinery employees but at that time no votes were cast. An agreement was reached between Refinery Employees Union (REU) and Continental Oil Company in January 1946. Labor unions are legally recognized as representatives of workers in many industries in the United States. Today their activity centers on collective bargaining over wages, benefits, and working conditions for their membership, and on representing their members in disputes with management over disagreements of contract provisions. Some of the refinery’s major organizational changes over the years were: • 1961 – The Refinery and Chemical Plant Clerical employees were certified into the REU. • 1967 – The Teamsters won the election and signed an agreement with Conoco. • 1971 - Oil, Chemical and Atomic Workers Union (OCAW) won the election. • 1980 – OCAW became the bargaining agent for the clerical unit. • Through mergers, United Steelworkers is now the bargaining agent for Lake Charles refinery employees. OCAW merged with the 250,000-member United Paperworkers International Union (PACE) on January 4, 1999. PACE merged with United Steelworkers (USW) in 2005 to form the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers International Union (although, the merged union is still more commonly known as the United Steelworkers).

WO R K I NG A S

e xc e l pa r a l u b e s

A Team As the Lake Charles Refinery celebrates a 75th year of operations, it should be noted that the Excel Paralubes base oil hydrocracker began operations 20 years ago. Excel Paralubes was formed by the joint venture partners, Conoco and Pennzoil. Vision was of a pacesetter organization, both in terms of the quality of product and workplace culture. A unique set of core values was developed and viewed as an integral part of the Excel culture. These core values focused on safety, valuing others, trust, enabling outstanding performance, and consistent quality. As the years have gone by, the employees at Excel have been able to apply the instilled culture of continuous improvement to adapt to changing motor oil specifications without major investment. This culture of continuous improvement has enabled Excel to maintain ISO 9001 certification throughout its existence. Excel products are recognized and valued world-wide for their consistent quality. Excel employees have made numerous contributions to the surrounding community and have utilized their experience at Excel to grow and become leaders within Phillips 66. Excel has grown to be an integral part of the Lake Charles Manufacturing Complex and among the largest producers in the base oil market. The joint venture partners have changed over the years, with the current partners being Phillips 66 and Flint Hills Resources; however, the vision remains the same. A brief history of Excel Paralubes: • The concept of producing high quality base oil from lower cost crudes led to the Excel Paralubes project idea. • Construction began in 1994 on Excel Paralubes. • The project was completed in November 1996 and first product shipments began in January 1997. • The name Excel Paralubes is a contraction of “Excellent Paraffinic Lubestocks”. • Excel produces high quality Group II base oil which is used in many applications, most notably motor oil. • Excel co-products have always met stringent sulfur content requirements. • Greater than 20% plant capacity has been increased through employee innovations. • The development of supplemental feedstock provided product grade flexibility to adapt to changing market.

gulf coast lubes plant Phillips 66 is one of the largest finished lubricants suppliers in the United States, but people have remained our main focus as we’ve grown over the years. People who face challenges every day like aircraft mechanics, miners, industrialists, fleet managers and farmers. Today we have hundreds of formulations for thousands of applications. Our mission is to provide them with the means to advance their operations and to keep moving forward. The Gulf Coast Lubricants Plant located in Sulphur, La. is one of eight Phillips 66 lubricant facilities in the U.S. It was originally established in 1991 for the production of 8mm gallons annually of finished lubricants. Today, the facility produces approximately 35mm gallons annually and services over 200 customers with over 150 bulk finished products. Phillips 66’s Gulf Coast Lubricants is a VPP OSHA Star worksite. Inline blending consists of eight inline pumps blending various raw materials to produce finished lubricants. Three kettles are utilized to blend batch finished lubricants. The plant recently completed a brand refresh and products are now being sold on the market as Kendall Motor Oil and Phillips 66 Lubricants.

lake charles coke handling terminal

The Lake Charles Coke Handling Terminal is a 40 acre facility located in Sulphur, La. that handles roughly 1,700,000 tons of coke per year. This 50\50 joint venture between CITGO Petroleum Company and Phillips 66 as the operator began in 1983. It is currently the only operating coke terminal within Phillips 66 as a company. The Coke Handling Terminal is a VPP OSHA approved work site. Operations include coke stacking, reclaiming, and pad to pad transfer. There are four pads that hold up to 75,000 tons each. The terminal can stack out at 800 tons per hour and reclaim at 2,000 tons per hour. Petroleum coke is crushed into four inches or less before stacking on storage pads. There can be up to 350 trucks entering the terminal on a daily basis, dumping 5,300 tons per day on the truckâ&#x20AC;&#x2122;s surge pad. Afterwards, it is reclaimed and transferred through the BT-1 Port of Lake Charles Terminal for subsequent loading onto waterborne vessels. The Coke Handling Terminal runs coke 365 days a year. All employees participate in the Safe Start Behavior Based training and excel in the Good Catch reporting. The terminal has an ESIT representative every year. Lake Charles Coke Terminal celebrated 1 million safe worked man hours in July 2015 and is at 1,011,000 safe worked man hours as of October 2016.

clifton ridge marine terminal Clifton Ridge Marine Terminal – or “The Ridge” as it’s called here in southwest Louisiana – was constructed in the 1930s by Mobil Oil Co. to service the local Continental and Cities Service refineries. The original facility consisted of seven 80,000 BBL storage tanks. The terminal was acquired in 1980 by Conoco from Mobil Oil as part of the heavy oil project at the Lake Charles Refinery. Clifton Ridge has been the main artery for feedstock into the Lake Charles refinery for 30 years. It receives crude oil into the terminal via ship, barge, pipeline and truck and has established synergies with local industries to remain a vital part of Phillips 66 operations. CRUDE OIL STORAGE Once acquired, a strategic facility upgrade immediately began, which added 2.1 million barrels of crude oil storage capacity, including a 6 hundred thousand barrel storage tank that today still stands as one of the largest crude oil storage tanks in North America. This tank is 299 feet in diameter – just one foot shy of a football field – and stands 48 feet high. A new state of the art dock was constructed capable of handling vessels 950 feet in length with 40 foot draft. A new 20-inch pipeline was built to upgrade the existing infrastructure between Clifton Ridge and the company’s Lake Charles refinery, 10 miles north in Westlake, LA. IN-LINE BLENDING In 1985, a state-of-the-art “in-line blending” system was constructed at the marine terminal to provide homogenous mixtures of crude to be blended during delivery to the Lake Charles refinery. This operational process greatly enhanced the refinery’s capability to effectively compete in the domestic refining/marketing industry. By enabling the processing of lower quality/priced crude oil into high quality products, the in-line blending system allows Phillips 66 to select from a wide variety of crude from the world crude market.

The existing barge dock was upgraded and a new ship dock was constructed. The barge dock was destroyed by Hurricane Rita in 2005. The Clifton Ridge ship dock facilities accommodate tankers capable of discharging crude oil at an impressive rate of 50,000 barrels per hour, through a 30-inch pipeline into Clifton Ridge tankage. The Phillips 66 Pecan Grove Marine Terminal was constructed in 1984 on property purchased from BP Inc. Pecan Grove was constructed to support upstream operations in the Gulf of Mexico by providing dock facilities to load drill pipe and casing for offshore drilling. Along with the dock facilities, two 80,000 BBL tanks were constructed which were used for methanol storage for Dupont Chemical. These two tanks have since been converted to crude oil service. One 20,000 BBL tank was constructed to store marine diesel fuel for Conoco’s Domestic Marine tug/barge fleet. This tank has since been converted to base lube oil storage to support the Phillips 66 Gulf Coast Lubes Plant.

Our barge dock utilization has been maximized by providing not only crude dock service, but also service for base oil into the Phillips 66 Gulf Coast Lubes Plant.

the Phillips 66 Beaumont Terminal provides access to U.S. shale crude oil formations and Canadian crude to provide advantaged domestic crude oil supplies to the Lake Charles Refinery.

LUBE OIL HYDROCRACKER In 1995, as part of the company’s $750 million Lube Oil Hydrocracker project at the Lake Charles refinery, four additional tanks, additional 350 HP blend boosters and a 7000 HP mainline pump station were constructed at Clifton Ridge which increased storage capacity to 3.7 million barrels.

PEOPLE MAKE IT HAPPEN Clifton Ridge Marine Terminal staff are well versed in DOT, USCG, and EPA regulations. We have an average crude oil throughput of over 7 million barrels a month.

US SHALE REVOLUTION In 2016, Clifton Ridge was connected to what has been termed as the shale crude oil revolution with the connection to the Bayou Bridge pipeline system. This pipeline which originates at

In 2012, the Lake Charles area operations which include Clifton Ridge, Pecan Grove Marine Terminals and Louisiana Gathering pipeline system achieved VPP Star status for safety excellence. Since 1980, we’ve received nearly 2,000 ships averaging 525,000 barrels per delivery. We’ve also achieved 864,000 work hours without a lost workday case. The staff of highly trained and

qualified professionals takes great pride in the services they provide the corporation and are the most valuable asset of the operations. Our goal at the Ridge is to achieve customer satisfaction through operational excellence, being a valued partner, all while maintaining business, safety, and environmental core values. 37

lake charles pipeline Lake Charles Pipeline was built in 1963 as a pipeline terminal to allow the Lake Charles Refinery to transport petroleum products into the Colonial Pipeline and Explorer Pipeline, major arteries that supplies the mid-Atlantic and Northeast with gasoline and diesel fuel. It was originally called Cherokee Pipeline system prior to the joint venture with CITGO and Continental Pipeline Co. Later it became Conoco, and then ConocoPhillips, and finally Phillips 66 Lake Charles Pipeline. Lake Charles Pipeline is a 50/50 joint venture between Phillips 66 and CITGO. The terminal can store approximately 3 million barrels of segregated blends of finish products operated by Phillips 66. The terminal safely and reliably transports all the finished products (gasoline, kerosene, and diesel) from CITGO and Phillips 66 refineries that does not move over water or through the truck racks and delivers these products to the Colonial and Explorer Pipelines. The vast majority all of Lake Charles’ gasoline and kerosene clears the refinery by using this asset. Lake Charles Pipeline has recently achieved the VPP Star recognition of its exemplary safety performance, as recognized by OSHA for its development and implementation of VPP-quality safety and health management programs.

Photo credit: McNeese State University Archives

CIT-CON CIT-CON was built in 1949 on a 367 acre tract of land approximately one mile west of the CITGO Refinery for an initial investment of $44 million. The plant was designed to produce high quality lubricating oils and paraffin waxes with the most modern refining processes for the transportation, manufacturing and packaging industries. CIT-CON was a joint venture of CITGO and Conoco with 65% owned by CITGO and 35% owned by Conoco. The original capacity of the plant was 6,000 barrels per day of lubricating oil base stocks and 190,000 pounds per day of fully refined waxes. Later, CIT-CON began producing 9,000 barrels per day of high quality lubricating oil base stocks and 300,000 pounds per day of fully refined waxes.

Sentinel Truck Transportation For many years, local employees of the Conoco/DuPont truck fleet have delivered feedstock into the refinery and hauled products out. The Sentinel Truck Transportation had a specialized fleet of dump trailers and hauled the majority of this coke to the Lake Charles Coke Handling Terminal or to the Nisco Power Plant. A fleet of crude oil tankers picks up sweet crude and condensates from local Louisiana producers and unloads their cargo into the Louisiana Gathering Pipeline or Clifton Ridge for delivery into tankage for use by the refinery.

Natural Gas & Natural Gas Liquids Conocoâ&#x20AC;&#x2122;s natural gas and gas liquids production departmentâ&#x20AC;&#x2122;s main goal was to take receipt of the gas and liquids at the producers well heads then treat and transport NGP/NGL via a vast network of gathering systems and pipelines to either processing plants or into the refinery. They also sold refinery made products such as propane and butane through the refinery truck rack or rail car rack. All assets were eventually sold to Targa Resources.

Conoco sold its interest in the lube plant in 2001. 39

The great egret is a large heron with all white plumage. Its numbers decreased in the early 19th century when their plumes were used to decorate hats and due to habitat loss. Numbers have since recovered due to conservation measures.

Environmental Early on Continental Oil Company was involved within the Aransas National Wildlife Refuge in south Texas. Since 1947, the company has had active operations in harmony with the Canadian whooping crane flock that wintered there. Over the years, the population of the endangered species at the habitat has increased from 14 to over 300 birds. In 1968, the company’s historical concern for conservation was made concrete with the adoption of a formal corporate environmental policy. The motto “Doing what is environmentally right” was often cited. Years later, the formal statement was continually upgraded to reflect changes in technology and expectation. Conoco committed to operating oil movement by water with double-hull ships. Some of those ships delivered crude to Clifton Ridge, Lake Charles refinery’s crude storage facility on the Calcasieu Ship Channel. Phillips 66 shares the strong desire and determination to maintain the quality and scenic beauty of Louisiana’s environment. Corporate policy dictates compliance with all environmental laws and regulations. During the years 1982-1983 the refinery invested more than $54.6 million to control discharges into the air and water. In the 1990s an additional $6 million was spent on six projects to upgrade waste-water treatment facilities. The six projects and the Louisiana Department of Environmental Quality (DEQ) had approved the program to further reduce pollutants contained in refinery wastewater discharges. Double bottoms installed in tanks for sour feedstocks and light hydrocarbon products provided additional protection for the soil and water. The company received repeated honors for leadership in programs aimed at eliminating marine debris from

offshore platforms and cleaning up litter from Gulf Coast beaches. Refinery employees also participate in the Marine Spill Response Team that responds to any oil spills in the Gulf Coast region. In 2005, ConocoPhillips received the designation of a “World Partner” in the public awareness initiative, America’s Wetland: Campaign to Save Coastal Louisiana. The corporation donated $400,000. The red carpet was rolled out as the Lake Charles refinery received the ENERGY STAR award for superior energy performance in 2007. ENERGY STAR is a government-backed program that helps businesses and consumers protect the environment through superior energy efficiency. Phillips 66 Lake Charles Refinery was recognized by the Environmental Protection Agency (EPA) for the ecological components incorporated into the final design of the Bayou Verdine Remediation project. EPA Region 6 developed the Greenovations Award to recognize outstanding efforts in sustainability, reuse, green remediation, and alternative and renewable energy utilization. This award is given to a responsible party, developer, site owner, nonprofit, local government or community member who has demonstrated excellence in working cooperatively with Region 6 to support safe and responsible cleanup and reuse, especially those that promote innovative and sustainable reuse outcomes. The refinery’s final design included the reuse of trees, logs and wetlands flora salvaged from construction to create ecological niches along the banks of the Calcasieu River for aquatic species. Wildflowers, clover and native grasses were planted to create a sustainable natural habitat that would encourage the proliferation of pollinating insects.

E n v i r o n m e n ta l A c t i v i t i e s Through the Years Each year, Phillips 66 and employees gather to help with the paint recycling portion of the City of Lake Charlesâ&#x20AC;&#x2122; Annual Trash Bash. One of the cityâ&#x20AC;&#x2122;s main objectives for recycling is to reduce disposal costs and reduce the overall waste stream that goes into the disposal site. 41

Safety The health and safety of employees and contractors are primary concerns of the company. Phillips 66 is continuously committed to improving safety and health performance to achieve the ultimate goal of zero accidents, injuries, and occupational illnesses. Throughout the refinery, health and safety have high priorities in the design, construction and operation of the facility. Operating and maintenance procedures are constantly evaluated to make sure they are safe. “No job is so important that you can’t take time to do it safely.” In 1986, the National Petroleum Refiners Association (NPRA) presented the Lake Charles refinery with the NPRA’s Gold Award (achieving at least a 25% reduction in the total recordable incidence rate) and Award for Safety Achievement (operating one or more years without a lost workday case involving days away from work). In the 1990s over 70 volunteer employees insured the safety of co-workers and the community. They created the Fire Brigade (which began with Continental Oil Company), the Rescue Team, and the Hazardous Response Team. The Changing Awareness Produces Safety (CAPS) Steering Committee rolled out an Observer Program in July 1995. In 2011, with the support of LCMC workers, management, labor and the Occupational Safety and Health Administration (OSHA), the refinery became a Voluntary Protection Program (VPP) STAR worksite. OSHA established the VPP in 1982 to strive for safety excellence. The awarding of the VPP Star is the culmination of an ongoing partnership between the Lake Charles refinery and labor working cooperatively and proactively with OSHA to prevent accidents, injuries, and illnesses. Efforts to pursue VPP Star status at the refinery began in 2008, with refinery employees seeking out and correcting deficiencies at the facility prior to OSHA’s certification audit conducted in early 2010. The refinery has several Safety Emergency Teams: • Incident Command Staff • Fire Brigade • Hazard Material Team • Rescue Team • Air Monitoring Task Force

Community Engagement Phillips 66 is committed to operate as a valued neighbor in their communities and to serve as responsible corporate citizens. Some of the activities and community projects that the Lake Charles Manufacturing Complex supported over 75 years included: Fire Safety House

Rebuilding Together

PARTNERS IN EDUCATION The refinery developed a Partners in Education program with Westlake High School in 1989 and with Lake CharlesBoston High in 1990. Conoco donated computers, new software, work processors, and welding gear. Conoco also provided volunteers for classroom discussions and demonstrations, and provided funding for science and math teachers to attend seminars to expand their knowledge. In 1991, Conoco assisted in the repairs of the tennis courts at Lake Charles-Boston High School. When Lake CharlesBoston School closed, LaGrange High School became a Partners in Education (PIE) school. In 2000, Conoco was selected for two of the top five PIE awards presented by The Louisiana Department of Education.

American Cancer Society Relay for Life

CONOCO FIRE SAFETY HOUSE The Fire Safety House was designed to promote fire safety through a child-oriented fire safety training and education program. It was a scaled-down version of a two-story home on a trailer. It was taken to area elementary schools where students encountered harmless theatrical smoke blown into the building by a smoke generator. The children were taught what to watch for, what a smoke alarm sounded like, and what to do if they heard one. The Safety House was accompanied by volunteer employees who taught the children and provided some entertainment with a remote controlled, fire plug shaped robot. Conoco presented the Fire Safety House team with the 2000 Conoco President’s Award for Core Values in

United Way

recognition of the program’s efforts to carry the fire safety message to children. In 2004, the Fire Safety House was donated to the City of Lake Charles Fire Department. Over its 15 –year life as an instructional tool, it reached over one million students. CAREHELP CHRISTMAS EVENT Over 150 employees hit the stores to shop for 28 families that the refinery adopted for Christmas in 2003. Toys and baskets of food accompanied each delivery. REBUILDING TOGETHER Over the years Phillips 66 has been involved with several projects to rebuild homes and lives. From 2008 – 2013, the refinery donated $198,000 to Rebuilding Together to sponsor projects. In 2010, the “Build Day” Project was located in Mossville. A 75-year-old retired widow, who lived alone, needed numerous repairs to make her home livable, including replacing rotted exterior boards, replacing windows, and ceiling repairs. Volunteers joined Calcasieu Parish Sheriff’s Office in 2011 for the 6th Annual Law Enforcement Rebuilding Together event at the home of a Vietnam and Korean War veteran. Another project was in 2013 when volunteers worked to repair a home that leaked water in Lake Charles. A new roof was installed and then ceiling tiles. Broken glass and insulation were replaced. Both bathrooms were given a complete makeover. In the kitchen, a new ceiling, range, vent hood and water heater enclosure were constructed. Outside, unsafe iron railings were replaced and the front and back yards were mowed. Dangerous trees were trimmed and the debris hauled away.

AMERICAN CANCER SOCIETY RELAY FOR LIFE Each year in the spring Phillips 66 participates in the American Cancer Society Relay for Life event held at the Lake Charles Civic Center. The tent is set up and volunteers spend the evening selling a product such as nachos, chili, or glow-in-the-dark items. There are hundreds of volunteers and attendees who participate in contests, music, dancing and walking the track to show their support. At 9 p.m. the organizations line the Civic Center’s round-about with thousands of luminary bags which have the names of people who have survived cancer and those in memory of having had cancer.

plumbing repairs, installing new ceiling fans, general clean up, and planting fall flowers. The Post serves as a Home/ Outreach Center for veterans.

UNITED WAY For many decades, Phillips 66 has been involved in gathering donations for United Way of Southwest Louisiana. The amount of dollars raised to go towards United Way agencies has increased dramatically from 2008 - $227,000 to over $500,000 in 2016. The United Way Campaign funds are comprised each year of employee’s pledges, a silent on-line auction and golf scramble monies.

CARC The Lake Charles refinery and 13 of its volunteers assisted CARC (organization that supports people with disabilities) with an equipment repair project in 2011. New materials were purchased and the employees performed the fabrication and installation to do the repairs. They replaced steam pipes, u-joints, steam traps and installed all stainless steel controls.

MILLENNIUM PARK REBUILD In 2011 the refinery presented a check for $15,000 to the City of Lake Charles and Rebuilding Millennium Park Committee. Vandals had set fire and destroyed the park, which was built in 2000. Employees volunteered their time to help build a playground (built like a pirate’s ship), canopy areas, benches, splash park and walking trails.

CALCASIEU COUNCIL ON AGING THANKSGIVING BASKET DELIVERY Since 2006, Phillips 66 volunteers have collaborated with the Calcasieu Council on Aging to deliver Thanksgiving food baskets to homebound seniors in Calcasieu Parish. Thanksgiving food baskets contain food items needed to prepare a traditional holiday meal, including meat, canned goods and dessert. This rewarding project meets a basic human need and brings community members together who might not otherwise meet. Volunteers, maps, GPS systems and iPhones are coordinated to deliver over 350 meals.

AMERICAN LEGION POST 551 Thanks to grant money from Phillips 66 and Billy Navarre Chevrolet, the Mayfield-Taylor-McClain American Legion Post 551 in Lake Charles was refurbished in 2012. The 50 year old building’s “makeover” included replacing ceiling tiles, repainting the downstairs and stairwell, minor

CHEMEXPO Can you say Rheology? For years we have helped demonstrate a simple science experiment for 6th graders at the ChemExpo. The experiment relates to what the refinery does by demonstrating how different substances flow, like ketchup and cooking oil, depending what is added to them. That relates to motor oil and what is added to make it flow during cold weather.

Millennium Park Rebuild

American Legion Post 551 Makeover

CARC Volunteers

Calcasieu Council on Aging Thanksgiving Basket Delivery

JUNIOR ACHIEVEMENT IN A DAY One year, “Sweet O Donuts” was the name of the donut shop that the Nelson Elementary Second Grade classes owned and operated during their Junior Achievement in a Day. It was an opportunity for employees to work with elementary age children promoting an economic and business curriculum. Junior Achievement in a Day

Make a Splash Tour with Cullen Jones

MAKE A SPLASH TOUR WITH CULLEN JONES Each year more than 3,400 people drown in the U.S., including more than 700 children under the age of 14. According to the Centers for Disease Control and Prevention, 70 percent of African-Americans, 60 percent of Latinos and 40 percent of Caucasians do not know how to swim. In 2013, Phillips 66, the USA Swimming Foundation, and Olympian Cullen Jones educated parents, the Lake Charles community and civic leaders about this growing concern. As he met with the community his goal was to make known the resources available to Lake Charles residents, including information about free to low-cost swim lessons. PHILLIPS 66 FAMILY SAFETY DAY Phillips 66 teamed up with several community partners to host a Family Safety Day at Pinderosa Park in Westlake in May of 2013. Interactive activities covering subjects such as ATV safety, child car seat safety and installation, driver’s education and bicycle safety were presented to the community.

Phillips 66 Family Safety Day

Chateau du Lac Housing Project Christmas Lunch

CHATEAU DU LAC HOUSING PROJECT CHRISTMAS LUNCH Since 2005 Phillips 66 has hosted the annual holiday lunch for over 200 residents of Chateau du Lac. Employees greet guests with Christmas beads while lively holiday music is served consisting of turkey, dressing, green beans, macaroni and cheese, yams, cranberry sauce, rolls and punch, followed by a special cake. LaGrange High School students assist in serving the residents and Santa distributes gifts while Elvis serenades the crowd.

SPECIAL OLYMPICS Each spring Phillips 66 and other local industries host the Southwest Area Spring Games at a local high school. Phillips 66 volunteers are responsible for setting up the fields for their respective events the day before the event. On the day of the event, Phillips 66 hosts the Olympic Town where athletes can get snacks. The mission of Special Olympics Louisiana is to provide year-round sports training and athletic competition in a variety of Olympic-type sports for all children and adults with intellectual disabilities, giving them continuing opportunities to develop physical fitness, demonstrate courage, experience joy, and participate in a sharing of gifts, skills and friendship with their families, other Special Olympics athletes and the community. Athletes qualify for state level games during various local and area competitions. NUMEROUS OTHERS: • MS 150 Bike Race • McNeese Banners Series • Abraham’s Tent • Big Brother Big Sisters Bowl For Kid’s Sake Bowling Tournament • Christus St. Patrick’s Children’s Miracle Network Dragon Races • NAMIWalk • ReALLIEty Challenge • Tough Mudder • Veteran’s Day Avenue of Flags • Adopt a Soldier • Literacy Council of SWLA • LifeShare Blood Drives • American Heart Association Heart Walk • March of Dimes • National Parkinson Foundation • Westlake Summer Triathlon • Wounded Warrior

PHILANTHOPIC SOWELA TECHNICAL COMMUNITY COLLEGE CONTRIBUTION In 2006, Phillips 66, then ConocoPhillips, donated $2 million to SOWELA Technical Community College to construct a new industrial technology building after the campus sustained extensive damage from Hurricane Rita. The building consists of 12,500 square feet of instruction, simulation and office space. It houses six classrooms, two computer labs, nine offices, a main lab with six plant simulations and one operator control room.

SOWELA Technical Community College Contribution

A ribbon cutting ceremony was held in February 2013 to signify the opening of the new Phillips 66 Process Technology Center.

Special Olympics

Abraham’s Tent

Children’s Miracle Network Dragon Boat Races

Big Brothers Big Sisters Bowl for Kid’s Sake

MS 150 Bike Race

SWLA ALLIANCE FOUNDATION Over the years, Phillips 66 has made donations to the Chamber of Southwest Louisiana’s Economic Development campaigns. In 2009, a check for $20,000 was presented to help the chamber meet the following goals: • Sustaining our regional economy with expansions and new investors • Succeeding with Quality Development and Quality of Life • Strengthening regional resources for competitive advantage In 2015, a check for $20,000 was presented to the “SWLA on the Move” Economic Development Campaign to address critical issues facing our region: workforce development, business recruitment, business retention and expansion, regional marketing, and enhancing the regional partnership. The SWLA Alliance Foundation is the only 501c3, non-profit agency in the Southwest Louisiana region devoted solely to the economic development of our region.

Tough Mudder

Vateran’s Day Avenue of Flags

SWLA Alliance Foundation Donation

MCNEESE STATE UNIVERSITY Phillips 66 has been a supporter of the McNeese State University Foundation since 1987. Since then, Phillips 66 has given more than $400,000 to the university, primarily to the College of Engineering and Computer Science. Phillips 66 is or has been a member of the Engineering Industrial Advisory Board and Lake Area Industries/McNeese Engineering Partnership and has trained employees through the Institute for Industry-Education Collaboration at McNeese. Phillips 66 also supports the Banners Cultural Series as a corporate sponsor. In addition to monetary contributions, Phillips 66 actively recruits McNeese State University students.

In 2010, ConocoPhillips donated $10,000 for the process plant technology program in the college of engineering and engineering technology at McNeese State University through the McNeese Foundation. ConocoPhillips representative Willie A. Tempton Jr., second from right, plant manager, presents the donation to (from left) Dorothy Ortego, head of the engineering technology department, Billy Rose, McNeese Foundation board member, and Dr. Nikos Kiritsis, dean of the college of engineering and engineering technology.

LaGrange High School Science Department

LAGRANGE HIGH SCHOOL SCIENCE DEPARTMENT Phillips 66 awarded LaGrange High School a $100,000 grant to update the school’s Science Department. The enhancements were to promote more hands-on learning for students and provide teachers with valuable resources for classroom instruction. Equipment such as EKG Sensors, Temperature Probes, Motion Detectors, human torso models, animal and plant models, skeletons, and heart rate monitors were purchased. CITY OF WESTLAKE On December 19, 2014, the City of Westlake received a much needed boost to its coffers with a $115,000 grant for safety and emergency preparedness from Phillips 66. The grant was split between the police and fire departments and went towards the purchase of police equipment to speed up response times and traffic management and to replace aged firefighting equipment for response to community and industry emergencies. HURRICANE RITA VICTIM FUND After Hurricane Rita hit in 2005 the Lake Charles refinery donated $1,000,000 to assist local Hurricane Rita victims with long-term and short-term recovery to construct new affordable homes and help with more immediate needs such as food, clothing, medical assistance, and social services.

City of Westlake

COMMUNITY ADVISORY PANEL On April 10, 1990, ConocoPhillips’ President and Chief Executive Officer, Constantine Nicandros, announced nine environmental

initiatives, including the creation of Community Advisory Panels, to be environmental watchdogs over the company’s worldwide operations. The ConocoPhillips Lake Charles facility expanded on these initiatives, forming the ConocoPhillips Lake Charles Community Advisory Panel (CAP) in October of the same year. The purpose of this group is to foster two-way communication between Phillips 66 Lake Charles and the community about issues of mutual concern. Over the years, the company’s name may have changed but the CAP has been involved in many activities to accomplish this mission. The CAP has held several two-day retreats to evaluate its performance and progress, and to identify various goals to tackle. CAP members serve as ombudsmen for community issues, trusted by the community to be independent and objective, and are able to discuss issues in an informed and honest manner. The CAP typically has 10-15 members who reside in Calcasieu Parish and are civic leaders and are environmental interest representatives. They represent a cross-section of the community and meet monthly with Phillips 66 leadership team to discuss the facility’s operations, environmental concerns, safety practices, emergency preparedness, community involvement and other issues the CAP deems important.

e m p l oy e e p r o g r a m s CHANGING AWARENESS PRODUCES SAFETY PROCESS (CAPS) By Constance Weldon The CAPS process is a Behavioral Science Technology (BST) behavior-based safety process. This employee-driven initiative was established in 1995 to help the refinery improve its safety record. The vision of the CAPS process is that “Everyone goes home safely.” It is led by a steering committee of hourly employees and is supported by management. The process trains employees to observe fellow workers while they are working and to provide feedback to them on the safe and at-risk behaviors observed. Anonymity is held to the highest degree for both the observer and the person being observed.

This helps to increases the awareness around safety and helps to remove any barriers that may exist. The data from these observations is entered into the computer and the CAPS data is packaged and shared at the end of the month with management, supervisors, and employees. Reports from each area and plant wide data are generated. These reports list at risk behaviors observed, the number of observations conducted, the number of people observed, and any mitigations to correct the at risk behaviors. From these reports the data is reviewed by the facilitator to determine which at risk behaviors are to be focused on and shared with managers, supervisors, and employees. The first observation conducted by a CAPS observer in July 1995 is celebrated with an event called Dog Days. A safety theme is selected and sent out to the refinery. Each workgroup can set up a booth and decorate it according to the theme. The booths are judged and the winner of the Best Booth Contest receives a plaque. The employees enjoy footlong hot dogs, ice cream, and trinkets. Since its beginnings, the CAPS observers have conducted approximately 230,200 observations on Phillips 66 hourly employees and contract employees as of October 2016.

E m p l oy e e R e s o u r c e G r o u p s At Phillips 66, Employee Resource Groups help foster a diverse workforce. The networks primarily focus on professional development, networking, raising cultural awareness, and community service. CULTURE, CHANGE, AND DIVERSITY TEAM The Culture, Change, and Diversity Team (CCDT) originated in 1990, as the first of its kind in the company, to create an open and inclusive environment where all members of our diverse workforce are valued and encouraged to develop and contribute to their full potential. As the team evolved, the name of the committee changed from Alliance of Blacks

at Conoco (ABC) to Multi-Cultural Committee (MCC) and presently to the Culture, Change, and Diversity Team (CCDT). CCDT’s goal is to identify workplace diversity and inclusion issues and present the issues to leadership, along with recommendations. It also promotes awareness of culture and diversity to the workplace through its Inclusion University. The University has an Inclusion University Library onsite, which houses many books, videos, movies, and training material on diversity, culture, team building and leadership. Community Advisory Panel (CAP)

Four degrees are offered through the University: Associates, Bachelor’s, Master’s, and Doctorate. There is also a Supervisor’s program, which offers four degrees: Associate’s in Leadership Fundamentals, Bachelor’s in People Influence and Development, Master’s in Inclusion in Business Development, and Doctorate in Leveraging Diversity for Business Success. All Phillips 66 employees and contract workers are eligible to participate in the University at their own pace. CCDT celebrated its 20th anniversary in 2013 and the Lake Charles refinery CCDT traveled to Washington D.C. to accept a prestigious national honor. The nation’s top 25 Employee Resource Groups (ERG’s) and Diversity Councils were recognized and honored at the 5th Annual Diversity Council Honors Award ceremony in Alexandria, VA. In addition to the Inclusion University, the team promotes recognition of Phillips 66 employees through its Working to Always Value Everyone (W.A.V.E.) Award. Fellow employees nominate co-workers. The CCDT also supports and participates in other activities onsite, as well as offsite, such as representing the organization at Lake Charles’ Culture Fest.

Changing Awareness Produces Safety Process (CAPS)

Culture, Change, and Diversity Team

October is celebrated as Diversity Awareness Month with several activities such as puzzles, a logo contest, Inclusion University activity, and a raffle for employees to attend a culture event. This month long celebration culminates with the event A Taste of Diversity, where foods from several cultures are provided for the workforce to taste. Along with the great foods, each year a different culture is celebrated through music and entertainment. Culture, Change, and Diversity Team

Black Employee Network (BEN)

BLACK EMPLOYEE NETWORK The Black Employee Network (BEN) held its first open house on January 25, 2011 after several months of a core group of employees working diligently to establish the employee resource group. BEN’s goals are to promote social and support networking among Phillips 66 employees in Lake Charles, to further professional development, to prepare members to better capitalize on opportunities in the corporate world, to assist with college recruiting and promote community service with special emphasis on the black community. Since its inception, BEN has participated in many community projects including the MLK Gumbo Cook-off, group donation to the American Red Cross for Hurricane Isaac relief in 2012, support of the Black Heritage Festival through volunteer grant hours and donations, and the Southwest Louisiana Sickle Cell Foundation by partnering with them in their annual “Walk for a Cure.”

New Hire Network

BEN has hosted Career Training Fairs in Mossville, Westlake and Lake Charles. BEN has also held Scholarship Seminars, mock interview sessions with trained interviewers, and more. Professional development opportunities include seminars, Targeted Selection Training, complimentary subscription to a professional magazine, attendance at the Employee Resource Groups Council Conference, complimentary membership to the local Toastmasters Club and participation in the annual BEN Leadership Workshop at corporate headquarters in Houston, TX. Women’s Network

Multiple networking events were coordinated including summer picnics, holiday gatherings, attending the Black Rodeo, attending Southwestern Athletic Conference Games, NFL game nights at a local establishment, and Pelican basketball games. The vision for the future includes building on proven successful projects while responding to new needs as they arise and attracting employees from all ages and ethnic

Women’s Network

groups to participate in BEN. By doing this, it will provide the diverse thoughts needed to achieve the best decisions for company profitability and advance the company in its attraction and retention of a diverse workforce. A diverse work force is generally perceived as a better place to work. NEW HIRE NETWORK Learning the ropes in a company as large as Phillips 66 can be challenging, whether you’re a recent college graduate or simply changing jobs. Adapting to new responsibilities, policies and procedures, office locations, and professional contacts can initially seem overwhelming. The New Hire Network (NHN) was created to make transitioning easier and help new employees find their place within the Phillips 66 community. The NHN is a volunteer organization that provides social opportunities to meet peers in informal settings while promoting professional growth. In addition to networking amongst each other, the New Hire Network strives for community outreach and volunteerism. The New Hire Network has volunteered to serve food at Abraham’s Tent, participated in Bowl for Kid’s Sake, taken canoe trips or airboat tours of the marshland, played softball together and many other activities over the years. Employees with less than five years’ experience automatically receive active membership in the network. WOMEN’S NETWORK The Women’s Informal Network Group (WINGS) was established at the corporate level in 1991 as a forum for women to share their thoughts, ideas and experiences. The Lake Charles Women’s Network is a satellite of the Women’s Network in Houston that was established in July 2016 under the umbrella of the Culture, Change and Diversity Team. The Women’s Network’s mission is to provide leadership on women’s interests and promote a corporate environment

that fully values and maximizes employees’ diverse backgrounds, talents and perspectives. In support of a high-performance organization, the Women’s Network empowers, supports and facilitates the development of women to their full potential in order to achieve personal, career, corporate and community goals.

club now has many activities including bowling nights, skate parties, swimming parties, picnics, group trips and Christmas parties for children, grandchildren and employees. The club also offers discounted tickets to various sporting games and events, which allow members and non-club members to fellowship outside of work.

Objectives include increasing awareness and understanding of workplace issues from a woman’s perspective, enabling women to take advantage of career and personal development opportunities, and providing internal and external connections for women across a variety of job functions, career stages and age groups. Additionally, the network supports Calcasieu Parish’s community of women through volunteerism and community outreach that exemplifies Phillips 66 as a company that values differences and encourages diversity of thought.

Club Phillips gives back to the community through local programs such as the Calcasieu Women’s Shelter and childhood cancer initiatives. The club donates items to help these programs bring a little smile to the kids and families in these programs.

Monthly meetings have included lunch and learn presentations to learn self-defense techniques, women’s health and wellness and communication differences between men and women. The network has raised funds for the Ethel Precht HOPE Breast Cancer Walk while actively participating in the event, collected school supplies for the United Way’s Shoebox Project, as well as items for the Calcasieu Women’s Shelter. CLUB PHILLIPS The Employee Club at the Lake Charles Manufacturing Complex was established in the 1970s as “Club Continental” and later changed names to “Club Conoco” before its current name, “Club Phillips.” The original goal was to hold events that would allow employees to meet their co-workers and families outside of work and have a good time getting to know them. Over the years, the Employee Club has maintained the same values and welcomes all Phillips 66 employees. The group promotes great family time outside of work to allow a better working relationship by knowing more about your co-workers, creating a stronger workforce. The

Club Phillips (1960)

The club has been fortunate to have so many great people participate and hopes to keep going strong and get more involved in the local community. LAKE AREA INDUSTRY ALLIANCE Phillips 66 is a charter member of the Lake Area Industry Alliance (LAIA) when it was founded in 2000. Along with over 20 local industries, LAIA keeps the lines of communication open between industries and the community, public officials, educators and non-profit organizations. Plant managers meet regularly with LAIA to discuss information relevant to industries as a whole and participate in studies that are beneficial to southwest Louisiana. Public Relations representatives from the industries also meet regularly to develop communications strategies, such as the Industry Insider campaign that educates the public on many processes inside industrial facilities. The ChemExpo, Paint Recycling Program, Community Awareness Emergency Response, workforce development initiatives and economic impact studies are a few of the programs LAIA spearheads.

Club Phillips (1963)

Club Phillips

TOP TEN The year 2007 began the first “Top Ten” employee celebration luncheon for those with the most years of service.

People

L A K E C H A R L E S R E F I N E RY

75th Anniversary

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LAKE

CHARLES RE

decades of excellence

FINERY