e-FLAGSHIPA Publication for the CITGO Lake Charles Manufacturing Complex First Quarter 2011

2 Editor’s Note: The Lake Charles Manufacturing Complex may be referenced as LCMC within the e— FLAGSHIP articles.

F L A G S H I P

Published By

Government & PublicAffairs:

Dana Keel,

Government & Public

Affairs Interim

Manager

Pat Melancon,

Sr. Administrative

Assistant

April Joy Altazan,

Managing Editor and

Designer/

Communications

Specialist

FLAGSHIP

A Publication for the CITGO Lake Charles Manufacturing Complex First Quarter 2011

Please direct all informationand inquiries to: CITGO LakeCharles ManufacturingComplex Government andPublic Affairs DepartmentP.O. Box 1562, Lake Charles,LA 70602 or email us at:aaltaza@citgo.com.

CITGO PetroleumCorporation is a whollyowned, indirect subsidiary ofPetroleos De Venezuela, S.A.,the national oil company ofthe Bolivarian Republic ofVenezuela.

In This Issue:

3 A Message from Eduardo Assef4 LCMC Performance Measures5 What’s New in Safety7 Housekeeping Awards8 Environmental: Record Breaking

Performance10 Improving Environmental Stewardship

Through Outfall 00412 Unicracker Debug saves LCMC Millions13 The Success of the B-Cat Cracker

Turnaround14 From Their Perspective16 Fire & Spice Chili Cook-Off17 Team CITGO in the Community18 Employee Recognition20 CITGO in the Community22 Family News23 Employees’ Club24 Service Anniversaries & Reflections of

201026 Fueling Good

3

The First Quarter of 2011 ends with positive improvements.

Our safety performance has dramatically improved after LCMC experienced two safety incidents inthe first 10 days of the year, just before the major maintenance and capital work started on our firstquarter turnarounds. Yet again, the LCMC team refocused and kept everything under control. Wewere able to complete the turnarounds with no additional OSHA recordable incidents. Kudos toSafety, Operations, Maintenance, Technical and Projects groups for making this happen.

Our Environmental performance continues to be outstanding. It has been almost six months sinceour last Environmental Scorecard incident. We are leading the corporation in this area and I wouldlike to encourage everyone to keep up the exceptional work.

We recently completed the first group of major turnarounds scheduled for 2011. Significantmaintenance and capital work were done to B-Cat, Alkylation and the Acid Plant. The cost forecastat this time for these turnarounds is approximately $60.5 MM for Maintenance and $71.3 MM forCapital.

During the B-Cat turnaround, substantial discovery work was identified as the unit was opened upfor maintenance. At the Alkylation unit, the complexity and density of the work impacted ourexecution. In general, the outage durations during the turnarounds were longer than planned, butthe turnaround teams were able to effectively manage all obstacles. Their hard work now allows therefinery to operate back at full rates when margins are very attractive.

In 2011, we have had the welcome news of finding ourselves in a favorable market environment forrefinery margins. These margins are very different from what we experienced at the beginning of2009 and 2010. Our goal is now to continue our efforts to capture every economic opportunity thatthe market provides.

This challenging year, from a turnaround point of view, still has anenormous amount of work in front of it. We need to maintain ourfocus on Safety, Environmental, Reliability, and Cost Efficiencies aswe have successfully done during the past two years. I’m proud ofthe results that we have all achieved. Keep bringing your great ideasthat allow us to continue improving each and every day.

Thanks,

A Message from Eduardo Assef

Eduardo AssefVice President Lake Charles Manufacturing Complex

LCMC Performance Measures - Februar y 2011Complex Scorecard *Based on budgeted energy pricing—includes Business Center expenses.

By Andy Sharp

The LCMC Scorecard is a valuable tool for determining our performance as a refining operation. Keyindicators, defined during the budgeting process, are monitored monthly on this scorecard and compared against thebudget to determine if we met our commitment. The year-to-date comparison is different in that the commentindicates whether achieving the budget target by year end remains feasible.

Safety measures such as OSHA incident rates and the safety index indicate how well we have maintained ourfocus on performing our jobs safely. Environmental exceedances are tallied to show how we compare against ourallowance of one per month. Refinery operations are measured by utilization which indicates how well we keep theprocess units on line.

Expense categories include complex headcount, or the number of employees on site to operate andmaintain the facility. Energy intensity index measures how efficiently the refinery utilizes costly energy inprocessing feed stocks. Actual expenses are reported for both the routine maintenance and controllableexpense categories. Several earnings measures round off the scorecard by indicating profitability. Employees canview the current scorecard data by accessing the LCMC Scorecard link on the LCMC homepage.

2010 Feb 2011 2011 YTD

Year End Performance Measures Units Actual Budget 2011 Budget

0.33 OSHA Rate - Company #/200Mhr 0.0 0.3 0.5 0.3

0.00 OSHA Rate - Contractor #/200Mhr 0.0 0.3 0.2 0.3

0.11 Complex Safety Index Index 0.19 NA 0.19 NA

3 Corp. Environmental Exceedence # 0 1 0 2

87.4 Refinery Utilization % of EDC 72.5 75.5 74.8 76.0

1.0 Budgeted Capacity Loss % of EDC 17.1 12.0 13.2 12.1

1.4 Unbudgeted Capacity Loss % of EDC 0.2 2.4 0.3 2.4

373 Production-Light Oils MBPD 312 352 331 351

1,121 Complex Employee Headcount FTE 1,091 1,072 1,093 1,072

653 Routine Contractor Headcount FTE 660 823 701 823

9.2 Complex Overtime % O.T. 21.5 19.9 19.4 19.4

102.6 Energy Intensity Index % of std. 108.3 105.1 110.8 105.0

98.9 Maintenance Expense (excl T/A) $MM 7.4 10.2 14.9 19.0

775.1 Complex Controllable Expense 1 $MM 59.8 61.1 121.1 124.5

7.67 Gross Margin @ GAAP $/Bbl Input 15.51 5.92 13.60 5.65

49.8 Benefits from Initiatives $MM Updated Quarterly

248.6 LKC Bus. Unit Earnings $MM 92.5 -7.6 163.0 -17.2

7.0% LKC Bus. Unit Return on Assets % 33.7% -3.1% 29.8% -3.5%

5

What’s New in Safety

As we prepare to enter yet another large turnaround block, I would like to thank every CITGO employeeand contractor for their dedication and commitment to safety during the turnarounds recentlycompleted. Based on your efforts, each turnaround this year was a success in the area of safety andhealth. You met the challenge and overcame unexpected obstacles and your willingness to make thenecessary adjustments in our work practices, personal protection and your continued focus on safety isadmirable.

Our next challenge is approaching with yet another large turnaround block right around the corner. Wemust carry the commitment and dedication to Safety into whatever challenges we face. Currently, we areusing the lessons learned from earlier this year to improve the overall safety processes that we use tosuccessfully manage our safety efforts. Equally important, we havereviewed our improvements and are making them even better for theupcoming work load.

Even when we plan for safety, our future safety success depends oneach of us. Our individual contribution, alertness to changingconditions in the work areas, diligence in identifying and correctinghazards, and most importantly our willingness to address issues thathave the potential to cause injury or illness to ourselves or others, willagain be a key initiative. I know we are up to the challenge and I amconfident that we can meet whatever challenges are ahead. LCMC hasworked 600,000 safe hours since the last OSHA Recordable case. Let’sall do our part in attaining a milestone of 1,000,000 and more! Thankyou for being part of such a great team.

—Ron Tower,Manager Health and Safety

600,000 hours OSHA Free and Counting

Monthly Safety Slogan Winners

January: Safety Works When People WorkTogether.

—Jason Dupuis, Orange Team

February: Be Safety Strong, All Day Long!—Aaron Malone, Orange Team

March: Don’t be a Fool—Use the Right Tool!—Eric Sonnier, Red Team

2011 Safety Slogan/Logo byTamera Broussard, Utilities Group B Operator.

6

Beginning this month, the Safety Awareness Team is rolling out anew Safety Incentive Program. On April 1, 2011, providing thereare no OSHA Recordable Injuries or Illnesses experienced by anyCITGO employee, each Safety Team will draw for a Flip MonoHDVideo Camera. For each consecutive OSHA Free month additionalprizes will be drawn for the following.

2 months OSHA free – Ipod touch3 months OSHA free – Xbox 360 250GB Console with Kinect4 months OSHA free – Apple iPad with Wi-Fi 16 GB

What’s New in Safety

Safety Incentives

Celebrating Safety Success in 2010

Employees celebrated more than 2.7 million hours OSHA-free in 2010 at the Record-SettingYear Celebration, December 16 & 17. Pictures from this special event are featured below.

7

Machine Shop

Anne Krock, Michelle Dottolo, Jan Cuniff, Don Fruge,Lane Bateman, Randall Bertrand, Ray Garland,Cody Copeland, Jeff Hanchey

Jeff Bonnette, Robert Winstead, Don Fruge, Ramiro Soto,Greg Elfert, Lewis Mere, Ray Hill, Dale Cryar,Tim Dougherty, Mac Edwards, Pat Reed, Mike Meacham,James Leblanc, Richard Robicheaux, Nathaniel Carter

Derrick Campbell, Jeff Bonnette, Don Fruge,Maurice Griffith, Marshall Watkins, Greg Bernard,Tyler Richard, Bill Comeaux, Chris LeBlanc

December

Unicracker/Xylene

HousekeepingAwards

Michelle Dottolo, Sheila Trahan, Ann Stacy,Virginia Riley, Alan Roth, Jerry Seal, Don Fruge, MikeDuff, Jamie Boudreaux, Patrick Swift, Cade Harrison,Jared Edens, Tray Gordon

Warehouse

February

Steve Sonnier, Buck Moak, Willie Irving, Don Fruge,Darrell Gill, Josh Yglesias, Keith Hebert, Dan Fuselier,Gary Bussle, Keith Gray

C-Reformer

Ramiro Soto, Anne Krock, Chris Leech, Ray Hill,Roger Faulk, Michelle Dottolo, Josh Smith, Matt Bonsall,Jude Fox, Allen Burge, Don Fruge, Gary Jones,Robert Hines, Bill Brewer, Mike Vice, Mitch Brown,Rick Worsham, Patrick Bergeaux, Jimmy Guillot,Kurt Kennedy, Chris Buller, David Spell, Rob Weidner

Coker I

Instru./Elec. ShopJanuary

8

By Phyllis Holifield

Last year marked record environmental performance at LCMC.

According to data compiled by the Environmental Department, weset 11 new records in our environmental performance due to theefforts and diligence of all employees. These records show that wecontinue to reduce air emissions and the number of Title V permitdeviations reported to Louisiana Department of EnvironmentalQuality.

Along with these reductions is a decrease in the severity of incidentsthat require a notification to the agencies. We also see a reduction inthe amount of waste sent off-site by the facility. Reductions havebeen achieved by reuse and recycling material back to the processsuch as reuse of spent caustic at the Wastewater Treatment Plantand recycling bio-solids from the Wastewater Treatment Plant for use

at the Coker Units. The increase in environmental awareness by everyone at the facility has resultedin the lowest Corporate Scorecard events ever achieved by LCMC and for the first time we did nothave any Scorecard events related to air releases, a tribute to the efforts to improve equipment andoperational reliability. We also achieved the lowest number of water sheens to the river due to thediligence of monitoring dock operations, outfalls and installing projects to improve collection of spillsthat may get to an outfall.

In addition, the number of projects to reuse, reduce or recycle water has resulted in lowest waterusage for LCMC. As we move into 2011 we will need everyone’s continued awareness, diligenceand efforts to move toward setting new records for 2011. Performance Records for 2010 arerecorded below.

Record Breaking Performance

Environmental

Environmental Performance Records

Performance Measure

New Record Previous Record

Measure Date Measure Year

Environmental Scorecard Incidents 3 2010 7 2007

Air Scorecard Incidents, Count 0 2010 2 2007

Air Emissions, MTons 10.6 2010 11.7 2009

Title V Deviations, Count 118 2010 180 2009

Water Sheen Incidents, Count 2 2010 3 2009

Plant Water Usage, MGal/MBBL 54.5 2010 57.9 2009

Agency Notifications, Count 37 2010 49 2009

Offsite Hazardous & Non HazardousWaste Disposal, MTons

20.4 2010 26.7 2009

Offsite Spent Caustic Disposal, MMGal 3.4 2010 6.7 2009

Offsite Biosolids Disposal, Tons 6,155 2010 6547 2009

Re-use of slurry to Cokers, MBBLS 314 2010 270 2009

9

Environmental Wrap-Up

Environmental

Junior Team Green Youth Environmental Fair

The LCMC Environmental Protection Departmentparticipated in the Junior Team Green YouthEnvironmental Fair Saturday, March 19 at the CivicCenter. The fair promoted environmental stewardshipto students in a fun and entertaining way. TheEnvironmental Department displayed ways that CITGOhas “gone green” including e-Recycle day.

In keeping with Safety and Environmental awareness atLCMC, the Environmental Protection Department wouldlike to remind employees of the importance of maintainingcompliance with the following procedures:

Junction Box RequirementsLCMC is required to maintain the Oily Water Sewer (OWS)as a closed system in order to meet EnvironmentalRegulatory Requirements. All vents and openings from theOWS must be controlled. Controls include carbon canistersystems, p-traps or bell cap water seals, or a tightly sealedcap or plug, or by routing vapors to a flare.

Drum Management PolicyWhen planning any type of maintenance activity (e.g. turnarounds, routine cleaning, catalystchangeouts, etc.), consideration must be given to the types of waste materials that will begenerated and what method will be used for handling such wastes until disposal occurs. In mostinstances, roll-off boxes or drums are used to store and transport waste at the LCMC. For moreinformation, please consult the Drum Management Policy that addresses the procedure foracquiring and managing one of the most common forms of containers used onsite, drums.

Open Ended Lines (OELS)Open Ended Lines (OELs) are valves (or the open end of a line extending from a valve) in VOCService that contains process fluid on the upstream side and is exposed to the atmosphere onthe downstream side. OELs are regulated by State and Federal EnvironmentalAgencies. Please call Extension 8365 to report any OELs .

Captain Papillion with the Kid Piratesprovided entertainment at the Fair.

Save the Date:

e-Recycle DayMay 14

Life Church Parking Lot,Sulphur

The Outfall 004 box, located at the southend of C Dock, is just one example ofCITGO’s commitment to environmentalstewardship, according toEnvironmental Engineer Diana LeBlanc.

An outfall is the place where a sewer,drain or steam discharges wastewaterinto receiving waters. Outfall 004,designed for a 25-year rain event, is oneof 12 outfalls identified within the CITGOLCMC Louisiana Discharge EliminationSystem permit. It was originally designedin 1943 to collect discharge from surface draining, overflow from the Powerhouse Seal Pit, and roof drainsand general overflow streams from structures and buildings.

LeBlanc said throughout the years, various changes have been made to the outfall system. One effort includedthe rerouting of utility wastewaters from the water treatment area of the powerhouse to the refinery’swastewater treatment plant. Various plugs have been installed in the underground lateral drainage lines andsurface drains out of the 004 drainage system in the maintenance shop area were rerouted. Finally, in early2008, 38.7 MGPD (thousand gallons per day) of Calcasieu River water from surface condensers (for theelectrical generating turbines in the Powerhouse) was removed.

In 2006, the Environmental Department began plans to build the Outfall 004 oil collection box to reduceenvironmental permit violations resulting from visible iridescent sheens at the 004 Outfall. According toProject Manager Dan Jacobsen, oil collection boxes are valuable assets for preventing free-floating oil, whichmay be found in the surface run off from roads, parking lots, and process water from various units, fromentering the Calcasieu River. In order to maintain regulatory compliance with outfall discharge permitrequirements at the LCMC Outfall 004, construction of an oil collection box at the site was completed in Julyat $1.2 million.

Jacobsen said the oil collection box at Outfall 004 is similar to other outfall boxes; however, itsinstallation presented a challenging set of circumstances. “The underflow-overflow weir design ofthe oil collection box is straight forward, however, the large size of the box, the 22’ depth ofconstruction, and close proximity to the river created some unique challenges” Jacobsen said.

Improving Environmental Stewardship through

Outfall 004

Outfall 004—C Dock

Ronnie Dunn, Diana Leblanc, Curtis Miller and Dan Jacobson

11

Construction of the oil collection box required adeep excavation. Jacobsen said sheet pile wasused as both shoring and as the exteriorformwork for the concrete box. The sheet pileshoring system was fully externally braced inorder to provide access for construction insideof the box.

Jacobsen said the main challenge duringconstruction of the project was in blocking the72” reinforced concrete pipe outfall line awayfrom the Calcasieu River. He said the normalelevation of the river varies, which resulted inupstream water elevations of 3ft to 8ft at the oil collection box. Various methods were used in attempt toblock the line and eventually a 72” plumber’s plug was successfully employed.

Jacobsen said during construction, a temporary bypass was created to handle the continuous dryweather flow and light rain events. Once the 004 box was mechanically complete, it went directly intoservice.

“This project will help LCMC stay on track for a better future,” LeBlanc said.

The concrete oil collection box is 20ft x 20ft x 20ft. In the event free floating oil enters this drainagesystem, it will be contained on the upstream side of the underflow weir. A vacuum truck collects any oilwhich may accumulate within the box, this oil is ultimately reprocessed through the refinery. A crosssection of the oil collection box is shown below.

Dan Jacobsen, Curtis Miller, Ronnie Dunn

Outfall 004 ...Continued

LCMC operators and engineers reactedquickly and efficiently to fix a problem atthe Unicracker in January, saving LCMCmillions.

A malfunctioning hydrogen quench valveresulted in a Unicracker charge ratereduction of 10 thousand barrels per day. Aunit shutdown was a likely possibility if theproblem could not be fixed quickly.

In less than a day, unit engineers, operatorsand support personnel went from planningto shut down the Unicracker to resolvingthe issue completely.

Unit Engineer Brandon Thomas saidoperators acted quickly to diagnose theproblem, but were initially unable to pin-point the exact reason for the problem. Hesaid that the hydrogen quench valve, whichprovides lower temperature hydrogen in-between catalyst beds in order to controlthe reactor temperature in the unit, wasunable to control the temperature. “Theability to control the temperature is criticalbecause an uncontrolled temperatureincrease would initiate an automaticemergency shutdown and de-pressure ofthe Unicracker,” he said.

To prevent this from happening, operatorsopened and stroked the hydrogen quenchvalve in order to try and establish hydrogenflow to the catalyst bed, without success.

“At that point, we thought the plug mighthave come off the valve. We took an x-ray ofthe valve, but because of the thickness ofthe valve, we could not get a clear pictureand were unable to determine what thesource of the problem was,” he said.

Area Maintenance Supervisor John Adamssaid since the x-ray did not reveal aproblem, Maintenance began checking intowhat other problems could be altering theUnicracker’s behavior. “Everybody wasafter one goal—to keep the unit running,”he said.

Because of the extreme pressures andtemperatures at which the unit wasoperating, Thomas said it was important tofix the problem quickly. In order to helpcontrol the reaction, the operators decreasedthe total charge rate and prepared to shutdown the unit the following day. Whileplanning the next step, Thomas saidoperators and instrument personnel did notgive up their quest to fix the problem.

After further investigation, Thomas saidoperators performed a pressure survey andvalidated that there was an issue with thequench valve. Rather than calling it quits andshutting down the unit, Thomas said theoperators continued to conduct a series ofprocess tests on the valve in order to betterunderstand the issue. An unconventionalsecondary flow path test on the high pressurecircuit determined that the quench valve wasmechanically sound and that the real issuewas a plugged valve. Instrument personnelhelped confirm the diagnosis.

Thomas said the plugged valve was asurprising find because hydrogen is a verylight weight gas and valve plugging is typicallynot a concern. After purging the valve of a“grey glue-like” material, valve operation andunit operation returned to normal withinminutes. Area Manager Marshall Watkinssaid the issue was a team effort. “Everyoneput everything aside and helped resolve it.That was the key,” he said.

“I didn’t think we could fix the valve. Ithought it would take shutting down the unitto, which would take three to five days,”Thomas said. Margins Analyst CarolinaCaballero said shutting the Unicracker downfor even this short period of time would costthe refinery $1.2 to $2 million.

“Everyone appreciates the operator mentalitywhen it comes to getting the job done. At theend of the day, operators lived up to theCITGO way: Keep it Safe, Keep it Clean andKeep it Running,” said Thomas.

Unicracker Debug Saves LCMC Millions

13

The Success of the B-Cat Cracker Turnaround

The B-Cat Cracker turnaround, successfully completed inearly March, included the largest forecasted LCMC capitalproject for the year, the B-Cat Regenerator InternalsReplacement Project. It was one of three unit turnaroundsscheduled for completion during the first quarter of 2011 inwhat may be one of the heaviest turnaround years in LCMC’shistory. In addition to a maintenance budget ofapproximately $20 million for the turnaround, the capitalproject was budgeted for $28.4 million.

The B-Cat regenerator (42’-6” DIA X 73’) operates at 1,350Fahrenheit and is where regeneration of the unit’s catalysttakes place–a continuous process in which catalyst isremoved from the process, coke deposits are burned off, andthen the “regenerated” catalyst is returned to the process.The catalyst has the consistency of sand and is very erosive.

Keith Reynolds, FCC Process Design Engineer, said planningfor Cat Cracker turnarounds starts years in advance of theactual turnaround. He said Cat Cracker turnarounds arescheduled for every four to five years because over time,catalyst-related process equipment within the Cat Crackersis worn out from catalyst wear.

Chris Deroche, Project Manager, said the scope of thecapital project was to replace all of the regenerator’sinternals and the combustion air overhead piping.

“Application of experience and lessons learned from thesimilar project completed at A-Cat in first quarter of2009, by all parties involved with this project from designthrough construction, resulted in a significant costreduction for the B-Cat project scope. In addition, thisproject planned for and designed the crane foundationand crane set-up location so that it can be re-used for nextyear’s C-Cat Regenerator project, resulting in a fewmillion dollars of savings for the foundation alone,” hesaid.

A similar project to those completed at the A & B-Cats iscurrently in progress to replace the C-Cat regeneratorinternals during the 2012 unit turnaround.

The reinstallation of the regenerator headwith the new upper internals attached.The picture was taken around 9 p.m. thenight of February 22.

The lifting of the previousregenerator head with the old upperinternals attached. This picture wastaken the morning of January 19.

14

From Their Perspective

When I think of Hawaii, I think ofbeautiful beaches, gorgeous sunsets, andexotic plant life, and that is exactly whatwe experienced. It’s a true paradise inevery sense of the word – a place ofserenity and of awe.

We, my husband Kenneth and I, spentthe first leg of our trip on the Big Islandof Hawaii. The window view from theplane was eerie as we landed on a blacklava field. Around every bend in the roadwas another climate or eco-system. Thesecond leg of the trip was spent on the

island of Oahu. This was a very different experience, with lots of hustle and bustle. Oahuoffered the best of both worlds. For those who like action and activity, this is the place tobe.

Needless to say, the trip ended too soon. We would have loved to re-visit some of ourfavorite places we discovered, but all good things must come to an end.

Janet Marks, HawaiiJanuary 19—27, 2011

Recently, a few employees at LCMC embarked on travels that provided them with life-changingexperiences and new perspectives. Whether for leisure, missions or just adventure, theseemployees found themselves on journeys that led them to new places within the U.S. and abroad.Here are their stories.

Janet Marks, Hawaii

15

Danny Pauley, Nepal2009, Returning May 2011

Going to Rome this year was my daughterHannah’s idea for her high school senior tripand not only did we see Rome; we took theAeroStar train for day trips to Florence andAssisi. In 10 days, we saw all 36 goals on ourlist plus more. We visited all four mainBasilicas, the Vatican, and the Sistine Chapel,and were privileged to attend the PapalAudience with the Pope. We saw Pope BenedictXVI on three different occasions: not only didwe attend the Papal Audience, we were allowedto be a part of his Mass and afterward werefortunate enough to walk outside where he wasblessing the crowd from his apartment windowin St. Peter’s Square. Talk about being in theright place at the right time.

We made two wishes at the Trevi Fountain, sawMichelangelo’s David in Florence, visited the

Pieta, and traveled underneath the Vatican to visit St. Peter’s bones. We also visited other important pieces ofhistory including the Colosseum, where we walked where Gladiators once stood. The trip was a blessing that I wasable to experience with my daughter and close friends. The beauty of this ancient city is something that I hopemany of you will one day experience. Ciao!

Each year we visit Nepal, we fly into the capital city of Kathmandu then catch a 30-minute shuttle flight to themountain airstrip at Lukla. From there, we begin the two and a half day trek to Khumjung. Kathmandu is a pictureof hustle and bustle, overcrowded streets with vehicle and pedestrian traffic, air pollution, noise pollution and waterpollution; Khumjung, by contrast, is quiet with very few people, cleanfresh air and absolutely no motorized vehicles. Except for the softchiming of the bells hanging from the necks of the yaks or the schoolchildren playing in the school yard, it is extremely quiet and peaceful.

In the summer of 2003 one of our mission teams traveled to the village ofKhumjung and befriended a family with a 6-year old son named Kalden,who suffered from a medical condition known as rickets – his legs weregrowing crooked and without treatment they would eventually notsupport his body weight as he continued to grow. Upon returning fromthe six-week trip, arrangements were made for Kalden and his motherPassang to visit the U.S. for medical attention. They arrived in January2004 and lived with us for five months. My wife and I escorted themhome to Khumjung, 15 miles outside Mt. Everest, in June 2004. We have been toNepal every year since, with the exception of 2010. It has been a blessing to havebeen part of these trips and so long as I am physically able I plan to return to strengthen the friendships, to partakeof the hospitality and to share the good news of Jesus Christ with those who will hear.

Norma Vidrine, RomeJanuary 3—13, 2011

Norma and Hannah Vidrinewith friends.

Joyce and Danny Pauley

16

Fire & Spice

Team CITGO volunteersTammy Spell and BobCarroll cooking chili.

G&PA InterimManager DanaKeel, VicePresident &GeneralManager of LakeCharles,Eduardo Assefand VicePresident ofRefining BobKent withjudges’ in theJudges Tent.

Chili Police ShelleyHacker, and G&PA InterimManager Dana Keel withPresident/CEO of UnitedWay SWLA Denise Durel.

More than 300 CITGO employees and Southwest Louisiana communitymembers celebrated the first annual Fire & Spice Chili Cook-Off at CITGOPark, March 17. Sixteen Cook-Off teams, representing area businesses,including industry, competed for 1st, 2nd and 3rd places for Best CompetitionChili. They also competed for Best Costumes and Best Table Decorationsas well as People’s Choice Award. CITGO fund-raised nearly $8,000 forUnited Way at the Cook-Off!

The following are this year’s Chili Cook-Off winners: 1st place—Sasol; 2ndPlace—Westlake Chemical; 3rd Place—Brand Energy & InfrastructureServices; Best Costumes—Sage; Best Table Decorations—Sasol andPeople’s Choice—Filter Resources (CITGO team member Andrew Boggs;)Congratulations!

17

In the Community

Jingle Bell Run

Volunteers gatheredto aid Habitat forHumanity Saturday,March 12 whilefilming the 2011Team CITGOcommercial that willair, in April, forNational VolunteerMonth. Volunteersplaced boards andinstalled windowsand siding.

Saturday,February 26,CITGOparticipated in theBowl for Kids’Sake 31st yearannual fundraiserfor Big BrothersBig Sisters ofLake Charles.Featured to theleft are the TeamCITGO bowlers.

Bowl For Kids’ Sake

Habitat for Humanity

Team CITGO Volunteers participating in theJingle Bell Run, hosted by the Arts andHumanities Council, December 4th. Allproceeds from this event went to the ArtsCouncil.

Volunteers filled food boxes and sortedthrough canned goods for the Care HelpChristmas Food Drive, December 11. CareHelp is a non-profit organization in Sulphurthat seeks to benefit those in need in theSWLA area.

Care Help Christmas Food Drive

UpcomingEvents

April 8—Special Olympics

April 9&10—Opening of USS Orleck

May 1—Duck Races

April 30 & May 1—Contraband Days

May 7 & 8—Contraband Days

May 13—Relay for Life

May 14—e-Recycle Day

June—Millennium Park Rebuild

18

Employee Recognition

New Employees

Pictured from left to Right:

Chad Landreneau—HR Consultant

Matt Hill - Assoc. Mechanical Engineer

Blake McGee - Inspector

Mary Robinson - Process Engineer

Charles Ardoin - Information Analyst

Marathoners

CITGO recruits the best and the brightest and we are proud to welcome five new employeesto the CITGO Family since December. If you haven’t done so already, please join us inwelcoming them to LCMC.

Senior Corporate Counsel CharlieHarper ran the New Orleans half-marathon in February and said hemay consider running again nextyear. Way to go Charlie!

Among the many talents thatLCMC employees possess, ahandful of our employees areavid runners. Here are thelatest and the greatest of ourMarathon runners.Congratulations!

Charlie Harper

19

Employee Recognition

Mark Lavergne

On January 30, Erin Green ran her second marathon inHouston. Two weeks later, on February 13, she ran herfirst half-marathon in New Orleans. She beat the time-splits from her marathons, which was her goal! Her nextbig race will be the Crescent City Classic 10K in NewOrleans, the Saturday before Easter. Her goal is to beatthe time she ran in that race last year. Way to go Erin!Keep Running!

In January, Fixed Reliability Engineer JeremyEast ran his first marathon in Houston. He said hefelt like it was an accomplishment just to finish. “Itwas a huge challenge, something that I’llremember forever. I made a lot of new friends andtogether we overcame many obstacles to preparefor and complete the race,” he said. Jeremy’sshort term plan is to race in all of the local 5k’suntil the marathon season this fall. Good luck

Jeremy East

Erin Green

Mark Lavergne was the Grand Marshall for the Krewe ofKrewe’s Parade in February. He is featured above withwife Debbie, sister Lorna Lanier, CITGO Process DesignEngineer Tim Bloomfield and his grandson, BaileyBertrand.

Mark was also the “head chef” for this year’s winningKrewe des Lunatiques’ Mardi Gras Gumbo Cook-offteam at the World Famous Cajun Extravaganza &Gumbo Cook-off, which was sponsored by CITGO. Sallyand Mark Bertrand were also on the team.Congratulations!

Local Celebrities

20

Dana Keel, Eduardo Assef, Lt. General Honore, Don Fruge,Anne Krock, Richard Doss, Jeff Bonnette, Chris Kelly,Charlie Harper, Tomeu Vadell, Jamie Boudreaux, Phyllis Holifield

In the CommunitySWLA Chamber Banquet

CITGO

George Rodrigue Cajuns to Blue DogsPreview Party

CITGO was the presenting sponsor at theChamber Southwest’s 107th Annual Banquet,January 20. Eduardo Assef introducedspeaker Lieutenant General Russel L. Honore.Honore is native of Lakeland, Louisiana. Heserved as the commanding general of the JointTask Force during the Hurricane Katrina disas-ter. He also served as a leader for disasterresponse in SWLA after Hurricane Rita.Honore’s mantra is “taking charge and creatinga culture of preparedness.”

CITGO Lake Charles continues to lead SouthwestLouisiana in its commitment to community. In 2010,CITGO donated $471,886 to United Way andCITGO was awarded the “Taking the Lead inLeadership Giving” for the most Pillars Clubmembers, totaling 197 members. G&PA InterimManager Dana Keel won the Harper Clark Spirit ofSWLA award. The award honors someone who hasa positive attitude, is enthusiastic and who is anactive volunteer. Dana is the first CITGO LakeCharles employee to be granted the honor.

CITGO is a major sponsor of the Imperial Calcasieu Mu-seum through the Children’s Art Camp, therefore, invited topatron parties throughout the year. Cajun Artist George(Blue Dog ) Rodrigue, from New Iberia, LA, is known for hisBlue Dog series, inspired by Rodigue’s long-deceased child-hood pet, Tiffany. For awhile, he painted Abstract Expres-sionist works, but then went back to painting that which re-flected his own Cajun culture, including folk tales and bayouand swamp landscapes. He is pictured above with G&PAInterim Manager Dana Keel.

United Way Victory/Annual Awards Reception

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In the CommunityCITGO

E.K. Key Winter Talent Show

General Manager Operations and MaintenanceDon Fruge & Administrative Assitant Linda Bimle,along with Sonny Taylor, a former E.K. Keystudent, were the judges for the school's WinterTalent Show January 18.

E.K. Key CITGO Apprciation Day

E.K. Key Elementary showed itsappreciation to CITGO for being its Partnerin Education by hosting a special E.K. Key,CITGO Appreciation Day, March 4. Thecelebration began with lunch. Also includedin the day was a tour of the school and anassembly with awards and student talentshows.

Sulphur Mayor Chris Duncan presented a decree to General ManagerOperations and Maintenance Don Fruge, proclaiming Friday, March 4 asCITGO Appreciation Day in Sulphur. The students decorated their respectivegrade halls with gratitude to CITGO. The Talent Contest’s People’s ChoiceWinners danced, the Whistle Stop’s Dancing Classrooms performed, and thefinale was a surprise visit from the Mardi Gras Revelers, who danced and threwMardi Gras beads to students.

General ManagerOperations andMaintenance DonFruge andSulphur MayorChris Duncan.

Partners in Education:

E.K. Key Elementary

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In the Community

Campfire Lighting ServiceDay

CITGO

Randy Scott received a $250 check for being the outstandingJunior Mechanical Engineering student at McNeese StateUniversity. He is working as a Co-op in the LCMC FixedReliability Group this semester and he is the son of Coker IIUnit Supervisor Rick Scott and Cindy Scott. Randy is a thirdgeneration CITGO employee; his grandfather Bob Hart retiredas Warehouse Manager from LCMC. Featured in the pictureabove are Rick Scott, his father Randy Scott and Dr. NikosKiritsis, Dean of Engineering and Engineering Technology atMcNeese State University.

StudentAccomplishments

CITGO donated 1,000 light bulbs to the CampFire Youth Service Organization, February 27for distribution in the community. The light bulbswere distributed at the Lake Charles HousingAuthority Development Golden ArmsApartments and also at the High School Park forlow income, and elderly residents.

The light bulbs were donated to Camp Fire byCITGO as part of the CITGO-Venezuela EnergyEfficient Lighting Program that was initiated in2008. The service day was an opportunity forCamp Fire scouts to work towards theirPresidential Leadership Award and forAmeriCorps volunteers to gain volunteerexperience in Southwest Louisiana.

Scott Miller, son of Steven and Sonia Miller,achieved the rank of Eagle Scout on August 9,2010 at a Boy Scout Banquet. Scott is now aSophomore at Iowa High School, where he is amember of the Quiz Bowl Team and has a 4.0G.P.A. Scott's future plans are to attendLouisiana Technical College and major inChemical Engineering. Congratulations, Steven!

Above: April Altazan,G&PA with AmeriCorpsand Campfirevolunteers. Featured tothe left is an AmeriCorpvolunteer displaying oneof the CITGO light bulbboxes.

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Retirees’ Breakfast

Sterling and Abigail Neblett, children ofManager Process EngineeringSterling Neblett and his wife Rachelle. Senior Engineer Supervisor Connie Smith and her children

Patricia, Ryan and Anthony

Retirees at CITGO remain to be a valuable part of the CITGO Family, even after they’ve left CITGO to enjoyretirement life. Our retirees’ breakfasts are celebrated quarterly and all retirees and their spouse or a guest areinvited. The January Breakfast was a packed house at CITGO Park. The next retirees’ breakfast is scheduled forApril 13 at CITGO Park. We look forward to seeing our retirees there!

Instrumentman Josh Smith and his wife, Treasure

BINGO nights are one of the best traditionsat CITGO. These fun filled nights are familyfriendly, affordable and entertaining! Be sureto bring your family out for the next Bingos,May 4 and 26 at CITGO Park. CheckEmployee News for more details!

BINGO!

UpcomingEvents

French Quarter Bus Trip……………………………..April 9

Children’s Easter Egg Hunt………………………...April 16

Bingo………………………………..……………..May 4 & 26

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January

Gareth Cook—10

Robert Hughes—10

Al Guy—10

Ben Touchet—10

Pat Bergeaux—35

Bart Bridges—20

Brandon Thomas—5

Tony Hargraves—20

Mike Brandon—30

Nathanial Carter—5

David Castro—5

David Fullerton—5

Ben Gentry—5

Wesley Gibbs—5

Dave Hazi—5

2011 Service AnniversariesJoey Pantely—5

Mark Prewitt—5

Arthur Sharp—5

Bob Simmons—5

Rickey Waterbury—5

Laura Heflin—20

Maury McClain—5

Charlie Malveaux—35

February

Ken Shores—10

Lane Bateman—15

Corey Burleigh—15

Jason Ellender—15

Gilbert Franklin—15

David Gillard—15

Robert Dale—5

Jason Dupuis—5

Mark Goode—5

Travis McNabb—5

Sara Neugebauer—5

Dean Newton—5

Eddie Pena—5

Ronnie Smith—5

Carlos Acosta—1

Paul Baronet—35

Cathy Gauthier—20

Kasey Crowell—15

Debbie Esthay—20

Greg Deshotel—5

Mike Rider—5

Performance Measure

New Record Previous RecordMeasure Date Measure Year

Combined Recordable Injury Rate 0.18 2010 0.24 2008

Safety Index 0.11 2010 0.13 2008

Environmental Scorecard Incidents 3 2010 7 2007

Air Scorecard Incidents 0 2010 2 2007

Air Emissions, MTons 10.6 2010 11.7 2009

Title V Deviations 118 2010 180 2009

Water Sheen Incidents 2 2010 3 2009

Plant Water Usage, MGal/MBBL 54.5 2010 57.9 2009

Agency Notifications 37 2010 49 2009

Offsite Hazardous & Non Hazardous Waste Dis-posal, MTons

20.4 2010 26.7 2009

Offsite Spent Caustic Disposal, MMGal 3.4 2010 6.7 2009

Offsite Biosolids Disposal, Tons 6,155 2010 6,547 2009

Re-use of slurry to Cokers, MBBLS 314 2010 270 2009

Performance Records Set in 2010

Thanks to the efforts of employees, LCMC had one of the best years of its history in 2010; it was truly aRecord-Setting year. Although refinery margins were not as good as expected, LCMC took every opportunityto capitalize margins with better yields, utilization and optimization processes. In the words of Vice Presidentand General Manager Eduardo Assef, “This initiative is evidence of the great teamwork among all LCMCdepartments. It is also evidence of the interaction of LCMC with supporting groups at CITGO CorporateHeadquarters.” Graphed below are Performance Records for 2010.

Reflections of 2010: Record-Setting Year

March

Ana Kiritsis—10

Servando Garcia—5

Allyson Miller—5

Lonnie Batchelor—35

CJ Fobbs—40

Troyce Thompson—35

Mark Lavergne—30

Gary Vincent—20

Jennifer Strickland—5

Mark Bertrand—35

Steve Fontenot—35

Ken McCown—45

Charlie Newcomer—40

April Joy Altazan—1

Service Anniversaries are in order by date of employment.

Bill Gormanous—15

J R Magel—15

Chris McQuilliams—15

Larry Moreau—15

Terry Taylor—15

Sandra Corkran—20

Cody Copeland—5

Dennis Dugas—5

Darryl Green—5

David Hinton—5

Bryan Jordan—5

James Phipps—5

Carl Rachal—5

Patrick Swift—5

Dale Blank—5

Jerad Braband—5

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Performance Measure

New Record Previous Record

Measure Date Measure Date

Unit Performance

Total Crude Charge, MBPD 384.5 2010 378.6 2006

Total Vacuum Charge, MBPD 175.6 2010 168.3 2009

Total FCC Charge, MBPD 134.4 2010 133.2 2001

Total Cat Gasoline HT, MBPD 65.2 2010 64.5 2005

Unicracker Charge, MBPD 40.6 2010 38.1 1992

ULSD HT Charge, MBPD 83.8 2010 75.5 2009

ULSD HT Charge (Month) 91.9 Oct-10 91.6 Sep-10

Monthly Power Generation, mW 26.7 May-10 25.1 Dec-09

Performance Measure

New Record Previous Record

Measure Date Measure Date

Production Volume, MBPD

Jet Fuel 84.3 2010 70.9 2005

Total Distillates 176.0 2010 164.2 2007

Toluene 1.0 2010 0.9 2004

Benzene 3.7 2010 3.2 2004

Total High Value Products 373.3 2010 359.1 2007

2010 Performance Records Continued