CFCH Provides Solution to Shrinking Supply and Higher Gasoline Prices.

Energy Editors/Business Editors

TULSA, Okla.--(BUSINESS WIRE)--March 17, 2004

The Clean Fuels Clearinghouse (CFCH) announced today that motor fuel producers are discovering how to use motor fuel environmental credits to increase critical gasoline supplies. Through the use of credit trading, provided for in new gasoline regulations and exchanged on the company's open platform, producers are discovering new ways to deliver more fuel to the motoring public at more cost competitive prices.

By utilizing sulfur allotments, a special type of credit, participating companies are able to increase production volumes, or import more gasoline, to meet rising U.S. demands. By the most conservative of estimates, there will be sufficient allotments available to increase fuel quantities by over 4 billion gallons in 2004. As the market grows and matures, some refiners will be able to produce even cleaner fuels, and more allotments. The next allotment sale is scheduled for March 30, 2004.

The Environmental Protection Agency (EPA) originally conceived of the credit-trading program late in 1999, having the foresight to see the need for flexibility, as producers would begin the transition to cleaner gasoline in 2004. Credits are generated when a company achieves a higher standard of performance than required by regulations. Tier 2 gasoline regulations promote this market-based dynamic encouraging the most cost competitive supply of cleaner fuels. The CFCH, formed independently of the EPA, was founded in 2001 to implement the program and has been operating successfully since. With over 70% of the U.S. gasoline supply represented, participants in this fair market exchange are able to deliver cleaner fuels by meeting or exceeding regulatory requirements in the most economical manner possible.

An efficient market is best for the consumer. CFCH serves the entire industry by providing a secure and independent exchange platform, assuring the fairest trade practices and fair market conditions. "Gasoline producers now have another business variable to utilize as they optimize compliance strategies, ultimately maximizing environmental benefits while minimizing the price impact of higher quality gasoline upon the consumer," said Clayton McMartin, president, CFCH. This free market approach, promoted by EPA and Congressional lawmakers, is a key factor in the successful implementation of today's regulations and will play an increasingly important role in advancing the cleaner fuel standards of the future. Additional information is available at the company's website www.CFCH.com.