A Safer Tank Car Joe Parrilli March 6, 2015
Honeycomb Cargo TM
A Safer Way to Transport Oil and Other Flammable Liquids
1Today we will review a safer way to transport oil and other
flammable liquids.
Increased Risk
2Oil & Gas production has been rapidly expanding in the
United States over the last 10 years. The introduction of fracking
methods and technology have enabled crude oil production to
sky-rocket.
This sudden ramp-up in production means more crude oil must be
transported to the refineries over existing infrastructure
primarily through rail car and trucking transportation
channels.
As the volume of crude oil transported over rail cars increases,
the number of rail car accidents also increase and the amount of
crude oil gallons spilled increases.
As you can see from the three correlating charts here, we are
facing a frightening dilemma with catastrophic results.
Total Crude by Rail
More than 1 million barrels of crude oil move by train across
the United States every day, according to data published for the
first time by the government on Tuesday.The volume of crude shipped
by rail has increased more than 50-fold in five years, from just
630,000 barrels in January 2010 to 33.7 million barrels in January
2015, the Energy Information Administration (EIA) revealed in its
first monthly report on movements of oil by
railhttp://bakken.com/news/id/236138/million-barrels-of-oil-per-day-riding-u-s-rails-kemp/
3We are currently transporting more than one million barrels of
oil by train across the United States every day.
The volume of oil shipped by rail has increased 50-fold in just
5 years.
Even though the Oil & Gas industry is currently in decline,
experts expect a recovery that will cause a rapid surge of
production and transport in the next 12 to 24 months.
This sudden surge will overwhelm the rail car transport system
and we will experience a very aggressive hockey-stick increase in
devastating rail car accidents.
1Q 2015 Derailments (to date)
OilTrains: Death and Destruction on the RailsOB Rag-Mar 4,
2015On Monday Feb 16, 2015 anoiltrain carrying millions of pounds
of crudeoil... that has proven susceptible tospills, fires and
explosions the Dot-111. ... They are mostly using substandard,
outdated and outmodedrailcars...CSX Freight Train Carrying Crude
Oil Derails CausingOil SpillNY City News-Feb 17, 2015It was told
that theoilfrom therailcars spilledinto the Kanawha River, a source
of drinking water in Kanawha and Fayette counties. Officials...BNSF
Train Hauling 103 Crude Cars Derails in Rural IllinoisBloomberg-17
hours agoHe couldn't confirm whetheroilhad beenspilledin the
accident area. ... The typicalrail carcarries about 700 barrels
ofoil, according to data...
BNSF Train Hauling 103 Crude Cars Derails in Rural
IllinoisBloomberg-17 hours agoHe couldn't confirm whetheroilhad
beenspilledin the accident area. ... The typicalrail carcarries
about 700 barrels ofoil, according to data...
4As you know, rail car derailments have been in the news quite a
bit lately.
In just the 1st quarter of 2015, weve seen at least three
catastrophic disasters.
Railroad Transport Map
5This is a static map of the current rail road system.
As you can see here, the main railroad arteries traversing the
landscape run through densely populated areas.
These railroad arteries also cross lakes, rivers, streams and
other precious natural resources that the surrounding communities
rely on for drinking water.
The vitality of these communities and their resources are put at
ever increasing risk every day.
A single oil tanker rail car accident can cause disruption and
devastation that impacts thousands of lives and costs millions of
dollars in environmental clean up.
Interactive Rail Map
http://media.gotraffic.net/images/iyAUba2He6qk/v1/-1x-1.jpg
6This interactive map will give you a better sense of the rapid
increase of oil & gas transported by rail between 2010 and
2014.
These volumes will surge with the Oil & Gas industry
recovery expected to start in the next 12 to 24 months.
This surge will put neighborhoods and communities along the rail
way at unprecedented risk.
Conventional DOT 111 Tank Car
7This is a typical or conventional DOT 111 Tank Car. There are
approximately 150,000 DOT 111 legacy tank cars currently in
operation today.
These tank cars have proven to be a weak link in the crude oil
transportation process.
Intense regulatory pressure has been mounting to have these tank
cars modified and/or replaced.
Conventional 1232 Tank Car Detail
8One of the more recent developments in tank car design is the
conventional 1232 tank car.
These modified tank cars include protective steel shields at the
front and rear of the car and stronger valves with protective
housings.
Unfortunately, these changes have not yielded the results we
hoped for.
Rail Car Disasters Continue
9Even with the improvements of the modified 1232 design, rail
car explosions are continuing to occur.
The impact to our environment and the communities effected is
devastating.
Hazardous Materials: Enhanced Tank Car Standards and Operational
Controls for High-Hazard Flammable Trains MAY 1, 2015: 49 CFR Parts
171, 172, 173, 174, and 179
AGENCY: Pipeline and Hazardous Materials Safety Administration
(PHMSA), Department of Transportation (DOT). ACTION: Final
rule.
SUMMARY: In this final rule, the Pipeline and Hazardous
Materials Safety Administration (PHMSA), in coordination with the
Federal Railroad Administration (FRA), is adopting requirements
designed to reduce the consequences and, in some instances, reduce
the probability of accidents involving trains transporting large
quantities of flammable liquids.
10On May 1st, 2015, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) and the Department of Transportation (DOT)
issued a final ruling intended to reduce the consequences and, in
some instances, reduce the probability of accidents involving
trains transporting large quantities of flammable liquids.
While these rule changes may reduce the chances of catastrophic
oil related rail car accidents the new rules seem to simply band
aid the existing DOT 111 and CP 1232 tank car design flaws that
have left communities along the rail transportation routes in great
jeopardy.
DOT 117 Specification Car
11This is a DOT 117 Specification Car. The specification of this
car are included in the May 1st 2015 regulatory changes and part of
the final ruling.
Re-enforced steel skirts and jackets, improved housings around
valves and drains, enhanced braking systems and tighter regulations
on train speed are all good ideas and they should be pursued
diligently.
However, in order to significantly mitigate the risk we may want
to consider changing the inherent design flaw of a single entity
tank car. No matter how robust or sturdy these tank cars are made
to be, they are all subject to the same risk: that is that when
they are punctured or breached, they put the entire payload not to
mention the entire community at serious risk.
Revolutionary Design
12
Summary of Solution:Honeycomb Cargo tm
Concept established March 2015
Designed to protect volatile compounds against sudden impact
during transport
Modular architecture to seamlessly integrate with present method
of operation
Scalable solution for a wide variety of applications and
capacities
Each cargo hold protected by an innovative shock resistant
element
Easy to load/unload with conventional equipment
Mass production in standard sizes available soon
Custom production also available by contract
13The Honeycomb Cargo concept was established in March of
2015.
This design is intended as an alternative to the single entity
DOT 111, 1232 and DOT 117 rail cars.
This modular, scalable and intermodal architecture is intended
to be seamlessly integrated with existing transportation
infrastructure.
Each Honeycomb Cargo hold is protected by an innovative shock
absorbing element.
Honeycomb Cargo holds are easy to load and unload with standard
upstream, midstream and downstream equipment found in the oil &
gas and transportation industries.
Mass production of standard size models will be available very
soon.
Custom, or build-to-order production will also be available by
contract.
Revolutionizing the Crude Oil Transport ProcessRevolutionary
designIncreased safetyReduced risk to life, health and
environmentEasy to fit into existing PMOLower overall operational
costIntermodal benefitsIn need of a champion
We welcome the participation of any investor interested in
quintupling their investment and protecting the environment.
Interested parties should contact Joe Parrilli at:
[email protected] or on 770-363-5312
14Honeycomb Cargo solutions are based on a revolutionary design
intended to increase safety and reduce the risk to life, health and
the environment and be easy to fit into the present method of
operation.
We believe these solutions will lower overall operational cost
and bring significant intermodal benefits.
This revolutionary design is in need of a champion. We are
currently moving from proof of concept to prototype and preparing
for lab and field evaluation. We expect to secure early adopters
that will help us move to mass production soon.
We believe the modular, scalable and intermodal design of the
Honeycomb Cargo solution will allow it to be applied to the
packaging and transportation processes of a limitless array of
products.
This scalable, intermodal approach will ensure that Honeycomb
Cargo is able to address multiple markets and expand well beyond
the Oil & Gas industry.
We welcome the participation of any investor interested in
protecting their investment and the environment.
Interested parties should contact Joe Parrilli at the email
address below or on 770-363-5312.
