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Alaska's Only Manufacturer of Ultra Low Sulfur Diesel Dedicates New Facility

Tesoro Alaska Company, a wholly owned subsidiary of Tesoro Corporation dedicated its $63 million distillate desulfurization unit (DDU) at the Kenai refinery today, making the company the sole manufacturer of ultra low sulfur diesel ULSD in Alaska. "We are very proud of Tesoro's 38-year history in Alaska, and the DDU investment creates a bright future for the Kenai refinery," said Steve Hansen, refinery manager.

Over 150 employees, contractors, and community leaders were on hand at Tesoro's Kenai refinery to witness the dedication. "The new unit is part of a company-wide capital investment program that focuses on improving existing refineries to grow opportunities for the company. We made the investment so we can produce the EPA-required ULSD for Alaskan consumers," said Tesoro's Chief Operating Officer Bill Finnerty.

The DDU has a nameplate production capacity of 10,000 barrels per day, and is designed to manufacture diesel with less than five parts per million of sulfur. The Kenai refinery has manufactured gasoline meeting 2007 EPA specifications for low sulfur since 1986. "To the employees and contractors that worked side-by-side under conditions that would have tested the resolve of many, but not those of you on this project - you have my thanks and gratitude. At times over the last year, contractor employees outnumbered refinery employees," said Hansen. Alaska contractors included Udelhoven, Peak, and Big G Electric, among others.

In appreciation for laying the foundation for the investment, Bill Haywood, Tesoro Senior Vice President for Refining, presented special plaques to the refinery's three previous managers. "Long-tenured employees are a sign of a great operation. Steve Hansen is only the fourth Kenai refinery manager since the plant began operations in 1969. As a testament to the standard of living on the Kenai Peninsula, all of them still live in our community," said Haywood. Glenn Jackson and his wife Molly, Mark Necessary and his wife Anita, and Rodney Cason and his wife Wanda, were recognized and thanked for their years of service.

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