Phillips 66: Borger Refinery

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Conoco and Phillips 66 announced on November 18, 2001 that their boards of directors had unanimously approved a definitive agreement for a "merger of equals". The merged company, ConocoPhillips, became the third-largest integrated U.S. energy company based on market capitalization and oil and gas reserves and production. On November 11, 2011 ConocoPhillips announced that Phillips 66 would be the name of a new independent oil and gasoline refining and marketing firm, created as ConocoPhillips split into two companies. ConocoPhillips kept the current name of the company and concentrated on oil exploration and production side while Phillips 66 included refining, marketing, midstream, and chemical portions of the company. Photo: Hugh Pickens all rights reserved.

by Hugh Pickens, Ponca City Oklahoma

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The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal <html>
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Corporate

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Strategic and Financial

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</html>

Business Segments

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Stock Market

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</html>

Reference

Refining Business Segment

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Increasing Profitability in Refining Business Segment

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Detailed Look at Ponca City Refinery

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Other Phillips Refineries

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Other Locations


Contents

Master Index of Articles about Phillips 66

File:Refinery crane.jpg
The 587 foot tall Mammoet PTC 140 crane, seen here from North First Street, towers over the Refinery Complex in Ponca City. The supercrane was used to move two new 232 ton coker reactor units within the refinery on September 29, 2013. Phillips was willing to invest $70 million in the two new coker reactor units because the Ponca City Refinery is one of the best run, safest, and most profitable of Phillips' fifteen worldwide refineries and Garland wants the refinery in Ponca City to continue to run smoothly and profitably. This photograph of the supercrane in Ponca City was taken from almost two miles away from the crane. Photo: Hugh Pickens All Rights Reserved.
File:Pickens and Garland.jpg
Hugh Pickens, an analyst who closely follows Phillips 66, speaks with Phillips CEO Greg Garland (right) about the disposition of the North Tower, South Tower, and Research West at Phillips' Ponca City Refinery after Garland's speech to the Bartlesville Chamber of Commerce on August 13, 2014.

by Hugh Pickens, Ponca City Oklahoma

<html>
</html>

The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal <html>
</html>

Corporate

<html>
</html>

Strategic and Financial

<html>
</html>

Business Segments

<html>
</html>

Stock Market

<html>
</html>

Reference

Refining Business Segment

<html>
</html>

Increasing Profitability in Refining Business Segment

<html>
</html>

Detailed Look at Ponca City Refinery

<html>
</html>

Other Phillips Refineries

<html>
</html>

Other Locations


Borger Refinery

File:Borger66refinery.jpg
Some of Phillips 66's other refineries do not run as safely or trouble-free as the refinery in Ponca City says Hugh Pickens, a private investor who closely follows Phillips' worldwide refinery operations. "For example, the Borger Refinery, operated by Phillips 66 since 1927[1], has a troubled history that includes two employee deaths and eleven injured by deadly fumes from a paralyzing gas in 1979 for which OSHA cited Phillips for "willful and serious" safety violations," says Pickens. More recently Phillips' Borger Refinery suffered three serious employee injuries in March, 2014, an employee fatality in 2012, a penalty for violations of the Clean Air Act in 2014, and an unscheduled shutdown in July, 2014 that closed down the refinery for 35 days for repairs. "Borger hasn't run well this year," says Garland.[2][3] [4] [5] [6][7] [8] [9] [10] [11] [12] [13][14] Borger Refinery Photo by: Philip Klein All Rights Reserved. Photo used with permission of the photographer

Description of Borger Refinery

The Borger Refinery is located in Borger, Texas, in the Texas Panhandle about 50 miles north of Amarillo and includes an NGL fractionation facility. The refinery’s gross crude oil processing capacity is 146 MBD, and the NGL fractionation capacity is 45 MBD. The refinery facilities include coking, fluid catalytic cracking, hydrodesulfurization and naphtha reforming that enable it to produce a high percentage of transportation fuels. As a result of the business venture with Cenovus Energy, ConocoPhillips has a 50 percent interest in the refinery. The refinery processes primarily medium sour crude oil and natural gas liquids delivered through pipelines from West Texas, the Texas Panhandle, Wyoming and Canada. The Borger Refinery also can receive foreign crude oil via company-owned and common-carrier pipeline systems. It produces a high percentage of transportation fuels, such as gasoline, diesel fuel and jet fuel, as well as coke, NGL and solvents. Pipelines move refined products to West Texas, New Mexico, Colorado and the Mid-Continent Region. The Borger refinery is operated by Phillips in a 50-50 joint venture with Cenovus Energy Inc.[15][16]

In 2007 the Borger refinery became part of a business joint venture with the Canadian oil company EnCana (now Cenovus Energy) with each partner now having a 50 percent interest in the refinery. In return, ConocoPhillips gained a 50% interest in Cenovus's oil sands projects at Foster Creek and Christina Lake, Alberta.[17]

News and Views on the Borger Refinery

July 22, 2017: Texas Commission on Environmental Quality Says Phillips 66 Borger Refinery Leads Texas in Particulate Emissions

The Amarillo Globe News reported on July 22, 2017 that Phillips 66’s Borger Refinery emitted more particulate matter than any other oil refinery from 2012 to 2016, according to data from the Texas Commission on Environmental Quality. The refinery exceeded its allowed particulate threshold 34 times over those five years, spewing more than 300 tons in total. Emission outbursts ranged from six minutes and 20 pounds to more than two weeks and 124,000 pounds. Quantifying the pollutants’ impact on Texas Panhandle residents is difficult without a detailed scientific study, according to Erick Butler, West Texas A&M University assistant professor of environmental engineering. Factors such as wind dispersion and proximity to the refinery magnify or shrink the risk of disease.

However in a written statement, Phillips 66 director of media and external relations Dennis Nuss challenged the TCEQ data, saying it was inaccurate based on faulty refinery reporting up until February 2016. “In 2016, the Borger Refinery identified it had been over-reporting emissions for Particulate Matter of 10 Microns or less (PM10) and met with TCEQ to inform them of the reporting error,” Nuss wrote. “We have recalculated PM10 emissions to meet TCEQ reporting requirements, however, the publicly available original emission reports will remain unchanged. Based on updated calculations, the Borger Refinery PM10 emissions are significantly less than reflected in this report.”[18]

May 28, 2017: Fugitive Causes $1 million in Damage to Borger Chemical Plant During High Speed Car Chase

Amarillo.com reported on May 28, 2017 that Hutchinson County law enforcement caught a fugitive wanted in at least three counties after a chase that damaged the Chevron Phillips 66 refinery in Borger. Angel Vasquez allegedly crashed through several gates at the chemical plant, causing extensive damage. Hutchinson County Sheriff Kirk Coker said the estimated damages may be near $1 million. “He was doing 85 mph (in a 20 mph zone) when he broke the gate,” he said. The suspect totaled the pickup, which was stolen from Amarillo, while on the grounds of the plant and continued on foot. A civilian used his helicopter to assist, and the Texas Department of Criminal Justice brought in canines. When the suspect was located, he’d changed clothes. Coker said he was in possession of $12,000 to $15,000 worth of radios from the chemical plant, “where he apparently broke in and found the clothes he changed into.”[19]

April 26, 2017: Phillips 66 Pays $61,000 Fine for Environmental Violations at Borger Refinery

News Channel 10 reported on April 26, 2017 that Phillips 66 settled for almost $61,000 for the release of pollutants including hydrogen sulfide and sulfur dioxide from its oil refinery near Borger in what the state of Texas has called "violations of environmental laws".[20]

April 13, 2017: Phillips 66 Borger Refinery to Donate $100,000 to Area Fire Departments

News Channel 10 reported on April 13, 2017 that Phillips 66 plans to donate $10,000 each to ten area volunteer fire departments near its Borger Refinery following devastating wildfires across the Texas Panhandle. Volunteer fire departments in Fritch, Whitedeer, Stinnett, Panhandle, Skellytown, Spearman, Wheeler, Lefors, Gruver, and Mobeetie will each receive $10,00 in a presentation at Frank Phillips College in Borger on April 18. "In March 2017, volunteer fire departments worked tirelessly to control the fire and protect the safety of neighbors. With safety as a top priority, Phillips 66 is committed to helping communities recover after natural disasters, and fire departments are a critical piece of community safety infrastructure," said the company in a news release.[21]

February 9. 2017: Environmental Lawsuit Against Phillips 66 Borger Refinery Benefits Students

News Channel 10 reported on February 9, 2017 that after Phillips 66 Borger refinery failed to meet environmental requirements, they were fined by the Texas Commission on Environmental Quality (TCEQ) and proceeds from the lawsuit are benefiting students in the Borger School District. Any time environmental lawsuits like this are settled, a portion of the financial penalty is paid to a Supplemental Environmental Project. Phillips 66 was penalized $13,688 for failing to meet environmental air standards. Approximately 40 percent of the penalty was paid to a SEP which, in this case, is Borger Independent School District (ISD). These funds will help pay for new school buses with reduced fuel emissions. "We have an older fleet of buses, so it's nice to add a newer bus to our fleet, especially if it has better emissions," said Rebecca Calder the communication coordinator for Borger ISD.[22]

June 16, 2016: Phillips Reports Emissions at Borger Refinery

Phillips on Thursday said normal operations resumed at its Borger, Texas refinery after an alkylation unit snag on June 15. The company also reported emissions on Wednesday, according to a filing with the Texas Commission on Environment Quality. [23]

June 14, 2016: Phillips Reports Wet Gas Compressor Restart at Borger Refinery

Phillips restarted the wet gas compressor and reported emissions at its Borger, Texas, refinery on Tuesday, according to a filing with the Texas Commission on Environment Quality.[24]

May 31, 2016: Phillips Does on Due-up Work on FCCU at Borger Refinery

Nasdaq reported on May 31, 2016 that Phillips 66's Borger Refinery is undergoing two weeks of maintenance on equipment related to its gasoline-making uniy. "Unit 40 FCCU [fluid catalytic cracking unit] is scheduled to clean half of the blower surface condenser," it said in a filing with the Texas Commission on Environmental Quality. "Unit 40 FCCU will reduce charge to minimize the possibility of process upset." The FCCU isn't scheduled to shut down during the work, which is due to end June 13, but that it may lead to plant emissions.[25]

May 19, 2016: Phillips Reports Emissions at Borger, Texas Refinery

Phillips reported emissions from the unit 82 amine treater at its Borger, Texas refinery on May 19, according to a filing with the Texas Commission on Environment Quality.[26]

April 29, 2016: Crack Spreads in the Central Corridor including Borger Refinery Were 24% Lower This Quarter

Greg Garland told analysts during the 2016 first quarter earnings conference call on April 29, 2016 that in the Central Corridor lower margins accounted for the majority of the reductions in adjusted earnings from the fourth quarter as market cracks were 24% lower.[27]

April 14, 2016: Phillips Reports Emissions at Borger Refinery

Operators reported that sulfur dioxide emissions from the “GOHDS HC flare” at the refinery on Thursday afternoon continued for more than 2 hours, according to a filing with state regulators. Operators investigated the cause of the incident and restarted the equipment. In another filing, operators reported emissions from the Unit 40 Fluid Catalytic Cracking Unit began early Friday morning and continued for almost an hour. Operators were investigating the cause of that incident, as well. [28]

April 2, 2016: Phillips Reports Emissions at Borger Refinery

Phillips reported emissions from the unit 40 fluid catalytic cracking unit stack exceeded 35 percent opacity at its Borger, Texas refinery, according to a filing with the Texas Commission on Environmental Quality.[29]

March 29, 2016: Phillips Reports FCCU Emissions at Borger Refinery

Phillips reported emissions from the fluid catalytic cracking unit (FCCU) stack exceeded 35 percent opacity at its Borger, Texas refinery.[30]

March 4, 2016: Phillips Reports Emission, Repairs at Borger Refinery

Nasdaq reported on March 4, 2016 that Phillips will begin a month-long emissions event related to maintenance repairs at its Borger refinery. "The line going to Unit 34's SRU [sulfur recovery unit] incinerator is partially plugged with sulfur," it said in a filing to the Texas Commission on Environmental Quality. It said sections of that line will be heated in an effort to melt out the sulfur, and that "there may be visible emissions during the heating of the line." Phillips said, however, that the Unit 34 SRU isn't scheduled to go down. It said the emissions event was scheduled to begin Friday morning and last until April 4.[31]

January 24, 2016: Borger Refinery to Produce Above Average Emissions Over the Next Month

Nasdaq reported on January 24, 2016 that Phillips 66's Borger Refinery will emit above-average emissions starting January 24, 2016 due to scheduled maintenance. "Unit 40 FCCU (Fluid Catalytic Cracking Unit) Electrostatic Precipitator (ESP) is scheduled for maintenance," the refinery said in a filing with the Texas Commission on Environmental Quality. "The FCCU is not scheduled to go down. During maintenance there may be high opacity and particulates released from the stack." Excess emissions could occur over the next month until February 24, 2016.[32]

January 6, 2016: Borger Refinery to Emit Excess Gases Above Permit Level

Nasdaq reported on January 6, 2016 that Phillips 66's Borger Refinery will emit excess gases for six hours or less as it undergoes a maintenance procedure. "Unit 40 Boiler is scheduled to switch from the Electric Driven FD Fan to the Turbine Driven FD Fan," said a filing to the Texas Commission on Environmental Quality. "During the switch the emissions are projected to be above the permit limit."[33]

November 27, 2015: Phillips Reports Emissions at Borger Refinery

Phillips reported sulfur dioxide emissions at its Borger, Texas refinery, November 27, according to a filing with the Texas Commission on Environmental Quality[34]

November 21, 2015: Phillips Reports FCCU Flaring at Borger Refinery

Phillips reported flaring from the fluid catalytic cracking unit (FCCU) at its Borger, Texas refinery on Saturday, according to a filing with the Texas Commission on Environmental Quality. The equipment was restarted to stop the event, according to the filing.[35]

October 30, 2015: Phillips Reports FCCU Emissions at Borger Refinery

Phillips reports emissions from the fluid catalytic cracking unit (FCCU) at its Borger, Texas refinery. The equipment was restarted to stop the event.[36]

October 26, 2015: Phillips Warns of Periods of High Opacity and High Particulate Emissions During Maintenance at Borger Refinery Through November 9

Nasdaq reported on October 26, 2015 that Phillips 66 is beginning more maintenance work at its Borger Refinery. "During the work there may be periods of high opacity and high particulate emissions," Phillips said in a statement to the Texas Commission on Environmental Quality, adding the emissions may last until Nov. 9.[37]

October 14, 2015: Phillips Warns of Above-Average Emissions at Borger Refinery for Next Nine Days

Nasdaq reported on October 14, 2015 that Phillips 66 has warned of above-average gas emissions during the next nine days at Borger Refinery as the plant undergoes seasonal maintenance. "A side of the Unit 40 Electrostatic Precipitator Cabinets (ESP) will be taken off line for maintenance," Phillips said in a filing posted Wednesday on the website of the Texas Commission on Environmental Quality. "During maintenance there may be offline rapping. During the work there may be periods of high opacity and high particulate emissions. The Unit 40 FCCU is not scheduled to go down."[38]

October 14, 2015: Phillips Reports ESP Work at Borger Refinery

Phillips reported a side of the unit 40 electrostatic precipitator cabinets (ESP) will be taken offline for maintenance at its Borger, Texas refinery. The company added that the unit 40 fluid catalytic cracking unit was not scheduled to go down.[39]

September 11, 2015: Sulfur Recovery Unit Upset Leads to Flaring at Phillips 66’s Borger Refinery

Chevron Phillips on Friday reported an upset at the Phillips refinery Unit 34 had resulted in off-specification material being sent to the Chevron Phillips Borger Chemical Plant. Unit 34 is a sulfur recovery unit. Once aware of the refinery unit upset, operators at the chemical plant shut-in the refinery feed and attempted to process the off-spec hydrogen sulfide to minimize the subsequent flaring event. [40]

August 17, 2015: Phillips Reports Relief Valve Leak at Borger Refinery

Phillips reported a relief valve leak at Borger Refinery according to a report from Reuters on August 17, 2015.[41]

August 17, 2015: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset at Borger Refinery according to a report from Reuters on August 17, 2015.[42]

August 11, 2015: Phillips Says Normal Operations Resumed at Borger Refinery

Phillips said normal operations have resumed at Borger Refinery according to a report from Reuters on August 11, 2015.[43]

August 3, 2015: Phillips Reports Process Upset at Borger, Texas Refinery

Phillips reported a process upset at Borger Refinery according to a report from Reuters on August 3, 2015.[44]

July 17, 2015: Phillips Says Borger Refinery Running at Reduced Rates

Phillips says unscheduled maintenance at the Borger, Texas refinery was causing fuel production from the refinery to be less than normal during ordinary operations according to a report from Reuters on July 20, 2015.[45]

July 16, 2015: Phillips Reports Unscheduled Maintenance at Borger Refinery

Phillips reported unscheduled maintenance at Borger Refinery and that the refinery was running at less than normal production according to a report from Reuters on July 17, 2015.[46]

July 11, 2015: Phillips Reports Emissions, FCCU Start-up at Borger Refinery

Phillips reported emissions due to startup of fluid catalytic cracking units (FCCU) 29 and 40 at its Borger, Texas, refinery, on Saturday, according to a filing with the Texas Commission on Environmental Quality. The filing said the units were scheduled to start up in the next couple of days according to a report from Reuters on July 12, 2015.[47]

July 1, 2015: Phillips Reports FCCU Emissions at Borger Refinery

Phillips reported FCCU Emissions at Borger Refinery according to a report from Reuters on July 1, 2015.[48]

June 19, 2015: Phillips Reports Process Upset and Release of Hydrogen Sulfide at Borger Refinery

Phillips reported a release of hydrogen sulfide from a stack due to a process upset on June 19, 2015 according to a report from Reuters on June 22, 2015.[49]

June 19, 2015: Phillips Reports Process Problems at Borger Refinery

Phillips reported process problems at Borger Refinery according to a report from Reuters on June 19, 2015.[50]

June 19, 2015: Phillips Reports Process Problems at Borger Refinery

Nasdaq reported on June 19, 2015 that Phillips has reported "process problems" and the release of gases from its Borger Refinery. Phillips said the gas releases began June 18, 2015 and ended the morning of June 19, 2015, adding the emissions were minimized. Phillips 66 reported similar operational issues at the same refinery in a report Thursday. It wasn't clear whether Friday's report was a continuation of the same problem, and company representatives weren't immediately available.[51]

June 18, 2015: Phillips Reports Process Upset, Equipment Restart at Borger Refinery

Phillips reported a process upset and an equipment restart at Borger Refinery according to a report from Reuters on June 18, 2015.[52]

June 15, 2015: Phillips 66 Reports Plant Outage at Borger Refinery

Reuters reported on June 15, 2015 that a wide outage occurred at Borger Refinery due to severe storms in the area.[53]

June 13, 2015: Phillips Reports Outage at Borger Refinery Due to Storm

Phillips reported an outage at Borger Refinery due to a storm according to a report from Reuters on June 15, 2015.[54]

June 4, 2015: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset at Borger Refinery according to a report from Reuters on June 4, 2015.[55]

June 2, 2015: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset at Borger refinery according to a report from Reuters on June 2, 2015.[56]

April 30, 2015: Borger Gets Money for School Buses After DCP Midstream Fined $33,188 for Not Adequately Controlling Sulphur Emissions

The Amarillo Globe News reported on April 30, 2015 that DCP Midstream was fined $33,188 for not adequately controlling emissions of sulfur at DCP Midstream’s Sneed Plant in the fall 2013 and spring 2014 where it processes natural gas. The company has since installed new equipment to solve the problem, according to the order. Borger Independent School District will get $13,275 of that to buy new school buses to reduce diesel emissions, according to the TCEQ website, as part of the Texas Clean School Bus program.[57]

April 27, 2015: Phillips Restarts SRU Incinerator at Borger Refinery

Phillips restarted the sulfur recovery unit (SRU) incinerator after it tripped on low burner pressure at its Borger, Texas, refinery, according to a filing with the Texas Commission on Environmental Quality on April 27, 2015.[58]

April 26, 2015: Phillips Reports Unknown Chemical Release, Process Upset at Borger Refinery

Phillips 66 reported an unknown chemcial release at Borger Refinery as reported on Reuters on April 27, 2015.[59]

April 10, 2015: Phillips Reports Process Upset at Borger Refinery

Phillips reported the process unit did not shutdown and control equipment was restarted at its Borger, Texas refinery, ac.cording to a filing with the Texas Commission on Environmental Quality on April 10, 2015[60]

March 21, 2015: Phillips Reports SRU Upset, Hydrogen Sulfide Flaring at Borger Refinery

Phillips 66 reported an SRU upset and Hydrogen Sulfide flaring at Borger Refinery on March 21, 2015.[61]

February 23, 2015: Phillips Reports Process Upset at Borger Refinery

Phillips 66 reported a process upset at Borger Refinery on February 23, 2015.[62]

January 22, 2015: Phillips 66 Reports Process Upset at Borger Refinery

Phillips 66 reported a process upset at Borger Refinery on January 22, 2015.[63]

December 31, 2014: Phillips Reports Process Upset at Borger Refinery

Phillips Reports Process Upset at Borger Refinery [64]

December 19, 2014: FCCU to Remain Online During Work at Borger Refinery

Phillips reported the electrostatic precipitator within the unit 40 fluid catalytic cracking unit (FCCU) was scheduled for replacement and the FCCU was not scheduled for shutdown during repairs, according to a filing with the Texas Commission on Environmental Quality. Phillips reports the ending date for the maintenance activity as January 16, 2015.[65]

December 2, 2014: Phillips Shuts FCC Unit 40 at Borger Refinery

Reuters reported on December 2, 2014 that Phillips 66 reported the shutdown of the fluid catalytic cracking (FCC) Unit 40 starting December 1, 2014 at Borger, Texas refinery and expects to restart the unit on December 23, 2014.[66]

November 14, 2014: Phillips Reports FCCU Startup at Borger Refinery

Phillips Reports FCCU Startup at Borger Refinery [67]

November 8, 2014: Phillips Reports FCCU Shut at Borger Refinery

Phillips reported the shutdown of the fluid catalytic cracking unit 40 (FCCU) starting Saturday at its Borger, Texas refinery, according to a filing with the Texas Commission on Environmental Quality. The unit was expected to be started up on November 20, the filing said. The heavy oil catalytic cracking unit 40 has a capacity of 30,000 b/d.[68]

November 5, 2014: Phillips Begins Planned Maintenance at Borger Refinery

Hellenic Shipping News Worldwide reported on November 5, 2014 that Phillips began planned maintenance at Borger Refinery the week ending October 31, 2014. Phillips shut the No. 40 fluid catalytic cracking (FCC) unit for 37 days starting the week ended October 31. The 146,000 b/d Borger refinery has two FCCs with a total capacity of 56,000 b/d. FCCs convert vacuum gasoil into gasoline and other high-end refined products. An FCC’s closure could result in a gasoline-stock drawdown, unless imports increase enough to offset production losses.[69]

October 23, 2014: Cenovus Profit Falls on Unplanned Outage at Borger Refinery

The Globe and Mail reported that Cenovus Energy Inc, Canada’s No.2 independent oil producer, reported a 4 per cent fall in quarterly profit and a 53 per cent drop in operating cash flow mainly due to an outage at Borger Refinery in July, 2014 that lasted for 35 days. A planned turnaround at the Wood River refinery in Illinois also contributed to the drop in profit and cash flow. Cenovus has a 50 per cent stake in the two U.S. refineries which are operated by Phillips 66.[70] "Several factors reduced profitability of our refineries in the third quarter, including lower throughput due to planned downtime with Wood River and unplanned outage at Borgerand lower crack spreads compared to earlier this year," said Cenovus COO John K. Brannan.[71]

October 20, 2014: Phillips Reports Exchanger Was De-pressured to Flare at Borger Refinery

Phillips reported on October 20, 2014 that an exchanger was de-pressured to flare at Borger refinery.[72]

October 16, 2014: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset at its Borger, Texas refinery, according to a filing with the Texas Commission on Environmental Quality.[73]

September 24, 2014: Phillips Reports Unit Upset During Startup at Borger Refinery

Phillips reported unit 45 experienced a process upset during startup and emissions from a gas oil hydrodesulphurizer flare at its Borger, Texas, refinery, according to a filing with the Texas Commission on Environmental Quality.[74]

September 2, 2014: Phillips Extends Downtime on FCCU at Borger Refinery Until September 10

Platts reported on September 2, 2014 that Phillips 66 has extended the downtime for an FCC at Borger Refinery until September 10.[75]

August 11, 2014: FCCU Shutdown at Borger Refinery

Retuers reported on August 11, 2014 that Phillips reported its unit 29 fluid catalytic cracking unit (FCCU) was shutdown to repair process piping at the Borger Refinery with work expected to end August 25. The No. 40 FCCU at the refinery will undergo maintenance from Aug. 10 to Aug. 27, 2014.[76]

August 5, 2014: Phillips 66’s Borger Refinery Returns to Normal Rates

Phillips returned the 62,000 b/d crude unit at its Borger, Texas refinery to normal rates on Tuesday after heater issues a week earlier, according to an IIR Energy report. The 30,000 b/d fluid catalytic cracking unit (FCCU), which was also operating at reduced rates during the repairs, returned to run at normal rates, IIR added. All units at the plant were operational as of late afternoon on Tuesday, IIR said. A spokesman for the company said planned maintenance work was underway at the refinery, but declined to provide details regarding specific units involved and the duration of the work.[77]

July 30, 2014: Garland Says Borger Refinery Hasn't Run Very Well This Year

Greg Garland told analysts during the 2nd quarter earnings conference on July 30, 2014 that with Borger's major turnaround in March and the 30-day-plus outage in July, Borger hasn’t run well this year. "So we’re working on improving operational reliability at Borger really to me are expectations. But the July event, by the way Borger is back up and running today. But July then was unplanned outage."[78]

July 30, 2014: Garland Says Borger Refinery is Back Up and Running

Greg Garland told analysts during the 2nd quarter earnings conference on July 30, 2014 that Borger is back up and running after the 30-day-plus outage in July. "So we’re working on improving operational reliability at Borger really to me are expectations. But the July event, by the way Borger is back up and running today. But July then was unplanned outage."[79]

July 3, 2014: Phillips to Close Borger Refinery for up to 35 Days After Power Failure

Dan Murtaugh reported at Businessweek on July 3, 2014 that Phillips plans to shut most of its Borger Refinery for as long as 35 days after it was unable to recover from a power failure, according to a report from Energy News Today. Phillips declined to comment on the report when contacted by Bloomberg.[80]

July 4, 2014: Phillips to Shut Most Units for Repair at Borger Refinery Over July 4 Weekend

Phillips said it would shut most of the production units at its refinery in Borger, Texas, over the July Fourth weekend to start a month of repairs following a power outage early this week, said sources familiar with operations at the refinery. The company had already been planning to shut the refinery’s 25,000 b/d delayed coking unit over the weekend for a three-week overhaul, sources told Reuters. Trade sources have said the refinery was planning a multi-unit overhaul this month to correct operational problems created by the power outage. [81]

June 30, 2014: Phillips Reduces Rates Ahead of Maintenance at Borger Refinery

Phillips 66’s refinery in Borger, Texas, started running at reduced rates this week ahead of maintenance, trade sources said on Monday. One source familiar with refinery operations said Phillips was shutting the 25,000 b/d delayed coking unit for work, which was expected to take two to three weeks and reduce rates on other units. A second trade source said the whole refinery was expected to be offline next week.[82]

May 8, 2014: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset led to emissions at its Borger, Texas, refinery, according to a filing with the Texas Commission on Environmental Quality on Thursday. The filing with did not specify which refinery units were involved in the incident. [83]

May 4, 2014: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset at its Borger, Texas refinery, according to a filing with the Texas Commission on Environmental Quality. The incident on Sunday led to emissions from the unit 40 fluid catalytic cracking unit, the filing said. [84]

April 28, 2014: New Refinery Manager at Borger Refinery

The Ponca City News reported on April 29, 2014 that Refinery Manager Pete Stynes is leaving the Ponca City Refinery to take over as Refinery Manager at the Borger Refinery. Stynes came to Ponca City in July 2009. Tim Seidel, currently the Production Manager at the Ponca City refinery will take over as Refinery Manager. Seidel previously was at the Santa Maria Refinery.[85]

March 26, 2014: Phillips Pays $500,000 Fine for Clean Air Violations at Borger Refinery and Four Other Refineries

CSP Daily News reported on March 26, 2014 that Phillips will pay a $500,000 penalty for violations of the Clean Air Act at the Borger Refinery in Borger, Texas, the Lake Charles Refinery in Westlake, La., the Wood River Refinery in Roxana, Ill., the Alliance Refinery in Belle Chasse, La., the Sweeny Refinery in Old Ocean, Texas, and several terminals across the country. Phillips also agreed to retire more than 21 billion sulfur credits that could have been used in the production of gasoline, which could potentially lead to significantly less pollution from vehicles. In a administrative settlement agreement, the EPA alleged that the company generated invalid sulfur credits between 2006 and 2012 and that Phillips failed to comply with recordkeeping, reporting, sampling and testing requirements at the five refineries. EPA discovered these violations during facility inspections and through a review of company records, which included the results of third-party company audits required by the Clean Air Act.[86]

March 18, 2014: Three Workers Injured in Hydrofluric Acid Unit at Borger Refinery

Channel 7 Amarillo reported on March 18, 2014 that two Phillips employees and a contractor were injured in an accident at Borger refinery that took place at about 5 pm on March 18, 2014. The injured were taken to Golden Plains Community Hospital to receive medical treatment and the condition of the individuals is not life threatening. One employee is at Golden Plains Community Hospital, the second has been transported to the Lubbock Burn Center, and the contract worker is under observation at Golden Plains Community Hospital. Scanner traffic indicated the injured had been exposed to hydrogen sulfide. Phillips is investigating the incident.[87]

According to the "Borger News-Herald" the incident occurred during turnaround at the unit that handles hydrofluric (HF) acid. The hydrofluric acid unit was shut down at the time the accident occurred. Phillips did not confirm the exact nature of the incident. Phillips is investigating the cause and implications of the incident and details are still being clarified as the influx of turnaround workers has increased traffic inside the plant. "We want to figure out exactly what happened," said Dennis Nuss, a Senior Advisor for Phillips 66 who works with Project Communications. "We want to make sure that something similar will not happen again." When asked if the incident was due to either a chemical exposure or a fire, Nuss said, "There was no fire." The Borger News-Herald is reaching out to contract companies and contractors for more information and will update the story as more information is released.[88]

February 14, 2014: Phillips Sells Gold Line System Serving Borger Refinery to Phillips 66 Partners

The Oil and Gas Journal reported on February 14, 2014 that Phillips will sell the Gold Product Pipeline System, also known as the “Gold Line System,” and the Medford Spheres, two newly constructed refinery-grade propylene storage spheres, to Phillips 66 Partners for a total consideration of $700 million. The Gold Line system shuttles approximately 132,000 barrels per day of refined products from a Phillips 66 refinery in Borger, Texas, north to Cahokia, Ill. It also includes two lateral lines, and four terminals with 4.3 million barrels of aggregate storage capacity.[89][90]

December 27, 2013: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset at its refinery in Borger, Texas, according to a filing with the Texas Commission on Environmental Quality. The company reported hydrogen sulfide and sulfur dioxide emissions from a stack, according to the filing. [91]

December 20, 2013: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset at its refinery in Borger, Texas, according to a filing with state pollution regulators. The company reported emissions from a fluid catalytic cracker and a gas oil hydrodesulphurizer.[92]

December 13, 2013: Phillips' Refineries in Ponca City and Borger to Supply Jet Fuel to Department of Defense

Channel 6 reported on December 13, 2013 that the US Department of Defense announced that it awarded a $292,016,625 contract to Phillips 66 for aviation turbine fuel to DOD facilities in Oklahoma, Colorado, Iowa, Kansas, Nebraska and Minnesota for 14 months, ending on April 30, 2015. "This competitive contract is awarded annually by the Defense Logistics Agency to supply jet fuel (aviation turbine fuel) to several Department of Defense facilities in Oklahoma, Colorado, Iowa, Kansas, Nebraska and Minnesota. Phillips 66 has a long history of supplying jet fuel to these locations from our Borger and Ponca City refineries. This contract is to supply approximately 87 million gallons over 14 months, with previous contract awards being in the 80 to 100 million gallon range."[93]

November 27, 2013: Phillips to Pay $300K Settlement for Migratory Bird Deaths near Borger Refinery

Jim McBride reported in the Amarillo Globe-News on November 27, 2013 that Phillips and federal authorities have reached a nearly $300,000 settlement over migratory bird killed near their Borger Refinery after the the U.S. Fish & Wildlife Service learned in August 2012 about 260 waterfowl, mostly teal, had been killed at the Johnson Tank Farm Pond, a 3 million-barrel brine water pond spanning 22 acres in Hutchinson County. In exchange for the company’s mitigation efforts, authorities will not prosecute Phillips under the Migratory Bird Treaty Act or other federal laws if the company continues to comply with terms of the agreement, which was reached November 22, 2013. “At Phillips 66 we conduct our business with care for the environment. ... We have added additional deterrents and continue to work closely with the U.S. Fish & Wildlife Service to minimize bird activity near our operations,” said Phillips spokeswoman Janet Grothe. Phillips has established an emergency treatment center for injured birds at the Borger facility, installed bird deterrent devices and contracted with another firm to keep birds away from the pond with a boat and air horns, federal authorities said.[94]

November 19, 2013: Planned Work is Underway at Borger Refinery

Reuters reported on November 19, 2013 that planned maintenance is underway at Borger Refinery. Phillips did not provide details regarding the specific units involved and the duration of the work.[95]

November 11, 2013: Phillips Said to Plan Unit Repairs on Alkylation Unit at Borger Refinery in March

Businessweek reported on November 11, 2013 that Phillips will shut down an alkylation unit for maintenance at their Borger Refinery in March said a person familiar with the schedule. Repairs on the unit, which produces a high-octane blending component for gasoline, will begin in the first week of that month, said the person, who asked not to be identified because the information isn’t public. Rich Johnson, a spokesman at Phillips 66’s headquarters in Houston, declined by e-mail to comment.[96]

November 1, 2013: Phillips Reports FCCU Restart at Borger Refinery

Phillips reported it was restarting the fluidic catalytic cracker unit (FCCU), which caused emissions at its Borger, Texas, refinery, according to a filing with the Texas Commission on Environmental Quality. [97]

October 25, 2013: Phillips Reports Process Upset, Emissions at Borger Refinery

Phillips reported a process upset and emissions from a unit at its refinery in Borger, Texas, according to a filing with the Texas Commission on Environmental Quality. [98]

October 18, 2013: Phillips Said to Idle Catalytic Cracker at Borger Refinery for Two Weeks

Bloomberg reported on October18, 2013 that Phillips may be forced to keep No. 40 fluid catalytic cracker, one of two of the systems at the refinery, shut at its Borger Refinery for at least two weeks for repairs, said a person with knowledge of the situation who asked not to be identified because the information isn’t public. Borger reported to the Texas Commission on Environmental Quality on September 24 that it would perform planned maintenance on Unit 40 through October 3. On October 13, the refinery reported emissions from a process upset. Two days later, the company reported there might be flaring related to the startup of the unit.[99]

October 15, 2013: Phillips Reports FCC Restart at Borger Refinery

Phillips reported that it was beginning to restart its unit 40 fluidic catalytic cracker (FCC) after emissions at its refinery in Borger, Texas, according to the filing with the Texas Commission on Environmental Quality. [100]

September 24, 2013: Phillips Reports FCC Precipitator Work at Borger Refinery

Phillips 66 reported maintenance at its unit 40 fluidic catalytic cracker (FCC) precipitators at its refinery in Borger, Texas, according to a filing with the Texas Commission on Environmental Quality. The maintenance was expected to last from September 24 to October 3, the filing said. [101]

August 13, 2013: Phillips Regains Control After Process Upset at Borger Refinery

The DOE reported on August 13, 2013 that Phillips reported it regained control after a process upset and emissions from the unit 34 sulfur recovery unit (SRU) at its refinery in Borger, Texas late Monday, according to a filing with state pollution regulators. The company said that there was no planned maintenance under way at the refinery.[102]

August 12, 2013: Phillips Reports Emissions at Borger Refinery

The DOE reported on August 12, 2013 that Phillips reported a process upset and emissions from the unit 34 sulfur recovery unit (SRU) at its refinery in Borger, Texas, according to a filing with the Texas Commission on Environmental Quality. The company reported maintenance on Sunday on electrostatic precipitators serving the fluidic catalytic cracking unit (FCCU) at the refinery, according to a notice filed with state pollution regulators.[103]

August 5, 2013: Phillips Reports Process Upset at Borger Refinery

Phillips reported a process upset at its joint venture refinery in Borger, Texas according to a notice filed with the state pollution regulators. The company had regained control of the process but did not specify which units were involved in the incident.[104]

July 16, 2013: Process Upset at Borger Refinery

Hydrocarbon Processing reported on July 16, 2013 that Phillips reported a process upset at unspecified equipment in Area C at its Borger Refinery and that associated emissions of sulfur dioxide and sulfur monoxide were routed to a safety flare.[105]

July 14, 2013: 400 Migratory Birds Encrusted with Salt at Borger Refinery

Jennifer Hiller reported in the San Antonio Express-News on July 14, 2013 that Texas is a major migration flyway for birds and with the severe drought birds desperate for water are landing in open pits and tanks that hold water for drilling and hydraulic fracturing operations. Last fall, for example, 400 migrating birds dove into briny water at Borger Refinery. “Their water source was dry and so they went to a huge brine pit that was within a refinery, and 400 or more birds were encrusted with salt,” said Longtime bird rehabilitator Bebe McCasland.[106]

July 7, 2013: Process Upset Causes Emissions at Borger Refinery

Phillips reported emissions at its Borger refinery July 7 were due to an unspecified process upset, according to a filing with the Texas Commission on Environmental Quality.[107]

June 14, 2013: Unspecified Process Upset Causes Emissions at Borger Refinery

Phillips reported a process upset at its Borger refinery that led to emissions, according to a filing with the Texas Commission on Environmental Quality.[108]

May 6, 2013: Phillips Completes Scheduled Work at Borger Refinery

Businessweek reported on May 6, 2013 that Phillips completed scheduled work at Borger Refinery that may have included a fluid catalytic cracker and alkylation unit, according to people familiar with plant operations.[109]

April 29, 2013: Process Upset at Borger Refinery

Fox Business reported on April 30, 2013 that a process upset occurred on April 29, 2013 that resulted in sulfur dioxide and hydrogen sulfide being emitted at Phillips' Borger Refinery. Phillips declined to say if operations were affected.[110]

March 13, 2013: Phillips Completes Maintenance on Wet Compressor at Borger Refinery

Fox Business reported on March 13, 2013 that Phillips 66 completedd maintenance at a key gasoline-making unit's wet gas compressor at its Borger Refinery on March 13, 2013. The planned work got under way on February 27, 2013.[111]

February 27, 2013: Maintenance Begins on Wet Gas Compressor of Unit 40 Fluid Catalytic Cracker at Borger Refinery

Nasdaq reported on February 27, 2013 that maintenance began on the wet gas compressor of the unit 40 fluid catalytic cracker, a component in the gasoline-making process at the Borger Refinery that is scheduled to last through March 8 according to a filing with state regulators.[112]

February 25, 2013: Phillips Reports Process Upset, FCCU Emissions at Borger Refinery

Phillips 66 reported a process upset and emissions from the No. 40 fluid catalytic cracking unit (FCCU) at its Borger refinery, according to a filing with the Texas Commission on Environmental Quality.[113]

January 30, 2013: Garland Says Phillips Utilization Rate Was Negatively Impacted by Turnaround at Borger Refinery

Greg Garland told analysts at the 4th quarter earnings conference on January 30, 2013 that Phillips utilization rate was negatively impacted by the turnaround at the Borger Refinery as well as turnarounds at Wood River and Los Angeles refineries, and Hurricane Sandy related unplanned downtime at the Bayway refinery. "In refining and marketing, our refining realized margin was $13.67 per barrel with a global crude utilization rate of 91% and a clean product yield of 83%," said Garland. "Lower volumes negatively impacted earnings by $42 million, mainly in the Atlantic basin and the Central Corridor regions, reflecting unplanned downtime due to Hurricane Sandy and plant turnarounds."[114]

December 10, 2012: Maintenance Finally Completed at Borger Refinery

Nasdaq reported on December 11, 2012 that a Phillips 66 spokesman said December 10, 2012 that recent planned maintenance at the Borger Refinery had been completed. The company said December 7, 2012 that it was shutting down its Unit 29 fluid catalytic cracking unit and that it would conduct work on Unit 29 after finishing working on FCCU No. 40, which is now believed to be back online.[115] Phillips had originally said FCCU, No. 40 would begin the process of restarting on November 26, 2012.[116]

December 5, 2012: Maintenance Still Ongoing at Borger Refinery

Fox News reported on December 5, 2012 that maintenance was still ongoing at its Borger Refinery despite the company having said on November 26 that a key gasoline-making fluid catalytic cracking unit, or FCCU, No. 40 at the refinery would begin the process of restarting.[117] Businessweek reported on December 5, 2012 that acccording to a person familiar with the operations the refinery is operating one of three crude units and a fluid catalytic cracker. The Borger outage has contributed to a growing glut of supply in West Texas with pipelines taking oil out of the region running at capacity. West Texas Intermediate crude delivered in Midland, Texas, rose $3.50 to an $11.50-a-barrel discount to the same grade delivered in Cushing, Oklahoma.[118]

November 30, 2012: Maintenance Still Underway at Borger Refinery

Businessweek reported on November 30, 2012 that according to Rich Johnson, a Phiilips spokesman maintenance is still under way at the Borger Refinery. The plant was scheduled to restart a fluid catalytic cracker Nov. 26, according to a filing with state regulators.[119]

November 30, 2012: Maintenance Delays at Borger Refinery Fuel Decline in WTI

“The outage is a major contributor to the blowout in WTI- Midland discounts,” Jeff Dietert, an analyst with Simmons & Co. in Houston, said in a note to clients. “Eliminating the demand from the Borger refinery creates over a 100,000- barrel-a-day shortage of demand/pipeline takeaway capacity in the Basin.” West Texas Intermediate crude delivered in Midland, Texas, declined $1.25 a barrel to a discount of $8.50 to the same grade of oil delivered in Cushing, Oklahoma according to data compiled by Bloomberg. West Texas Sour, another crude grade produced in West Texas, dropped $2 to a discount of $9.50 a barrel.[120]

November 26, 2012: Borger Refinery Down for Planned Maintenance Longer Than Expected

Businessweek reported on November 26, 2012 that the Borger Refinery has been down for planned maintenance longer than expected. Phillips took down production units for maintenance on September 22, 2012 and was scheduled to restart them last week, a person familiar with the situation said. Planned maintenance at the refinery is ongoing, the company said in an e-mail.[121]

November 20, 2012: Two Fluid Catalytic Cracking Units Shut Down For Maintenance At Borger Refinery

Bloomberg reported on November 20, 2012 that Phillips plans to shut down two fluid catalytic cracking units for maintenance has been delayed at least a week because repairs were more difficult than anticipated, according to a person with knowledge of the situation. The plant may start up this weekend, the company said.[122]

November 5, 2012: Process Upset at Borger Refinery

Fox Business reported on November 6, 2012 that a sulfur recovery unit process upset caused emissions to be routed to the plant's safety flare system at the Borger Refinery. The upset occurred at around 4:30 p.m. CST on Monday and ended at approximately 12:30 p.m. CST on Tuesday, the company said in a filing to Texas state environmental regulators.[123]

October 31, 2012: Major Turnaround in Progress at Borger Refinery

Tim Taylor reported at the Phillips Third Quarter Earnings Conference on October 31, 2012 that Borger Refinery is in a major turnaround. "Wood River and Borger are both in turnarounds today. We expect those back in operation here in November. Those are major turnarounds. Borger is a very significant one."[124]

September 24, 2012: Coker Taken Out of Service at Borger Refinery

Nasdaq reported on September 26, 2012 that FCCU 40, a key gasoline-making fluid catalytic cracking unit, will be taken out of service for just over one month starting September 24, 2012. FCCU 29 will shut down on October 21 for one month.[125]

August 8, 2012: Phillips 66 reports process upset at Borger refinery

Fox Business reported on August 8, 2012 that Phillips reported a process upset at its Borger Refinery. The filing didn't specify the unit involved in the upset, but listed Area C and D as sources of the emissions that lasted just over three hours. The status of operations at the plant is unclear. A Phillips 66 representative wasn't immediately available to comment, and typically doesn't speak about day-to-day refining operations or regulatory filings.[126]

July 11, 2012: Refinery Manager Chris Coon Says Borger Refinery has about 720 Full-Time Employees and 200 Routine Contractors

The Borger News Herald reported on July 11, 2012 that refinery manager Chris Coon speaking to the Borger Rotary Club told members that he Borger refinery has about 720 full-time employees and 200 routine contractors. Coon added that the refinery has a $65 million payroll annually, and is on the rolls for almost $6 million in payroll taxes and about $12 million in property taxes.[127]

July 11, 2012: Refinery Manager Chris Coon Says Borger Refinery Will be on Turnaround from Early August to October 1, 2012

The Borger News Herald reported on July 11, 2012 that refinery manager Chris Coons speaking to the Borger Rotary Club told members that at the beginning of August, a turnaround is beginning at the plant that will go through the first of October. The peak loading is going to be around 3,000 people, which amounts to about 1,500 per shift. Coon said this should benefit those involved in restaurants, hotels, and leasing.[128]

June 12, 2012: Phillips 66 reports process upset at Borger refinery

Phillips 66 reported a process upset on June 12, 2012 at its ) Borger, Texas, refinery according to a filing with the Texas Commission on Environmental Quality.[129]

June 3, 2012: Process Upset in Area A

On June 3, 2012 Philips 66 reported a process upset in Area A on Friday, according to a notice filed with the Texas Commission on Environmental Quality.[130]

May 25, 2012: Equipment Malfunction at Borger Refinery

Reuters reported on May 25, 2012 that an incident occurred around 3 p.m, local time, on May 25, 2012 at Phillips 66 Borger Refinery and the unspecified equipment was shut as a result according to a filing with the Texas Commission on Environmental Quality.[131][132] According to a government filing a hole in the furnace caused at release of 100 pounds of hydrogen sulfide.[133]

May 13, 2012: Process Upset at Borger Refinery

Reuters reported on May 14, 2012 that a process upset had occurred at Phillips 66 Borger refinery. The incident occurred at about 8.30 am, local time, on May 13, 2012 and a gasoline making fluid catalytic cracking unit was identified as a source of emissions. A report was filed with the Texas Commission on Environmental Quality.[134] A third party steam provider (Cogen Unit #1) tripped at 7:40 a.m. due to mechanical failure of a motor. Unit 40 FCCU was shut down and Unit 82 South Scrubber was upset due to steam issues. Unit 40 was restarted.[135][136]

May 10, 2012: Process Upset Leads to Emissions at Borger Refinery

Phillips 66 reported an unspecified process upset at its Borger refinery led to emissions at 1:42 pm on May 10, 2012 according to a filing with the Texas Commission on Environmental Quality. During a third party natural gas supplier upset (Rock Creek startup & line up) the South Scrubber overpressured and relieved to the flare. The emissions were routed to a control device and the operator hard blocked the West Rock Creek valve and moved gas from U82 to U35. The HDS platformer board man vented fuel gas to flare to help lower system pressure.[137][138]

May 1, 2012: Employee Fatality at Borger Refinery

KVII-TV in Amarillo, Texas, reported on May 1, 2012 an employee at the Phillips 66 refinery in Borger, Texas fell from a height of 100 feet at about 3pm and was taken to the Golden Plains Community Hospital in Borger where he died. "ConocoPhillips deeply regrets the loss of our employee and wishes to extend sympathy to the employee's family, friends and co-workers," said spokesman Rich Johnson. "ConocoPhillips is investigating the cause of the accident." Officials with Phillips 66 say the incident remains under investigation. It is reported that this is the first fatality at the refinery in 25 years.[139][140]

Two Dead and 11 Injured by Poisonous Fumes at Borger Refinery in 1979

File:Borger66refinery.jpg
Employee Deaths and Injuries at Borger Refinery: Phillips had three employee injuries in the Hydrofluric Acid Unit in March 2014 at Borger Refinery, an employee fatality in May 2012, and 2 dead workers and 11 injured in October 1979 as a result of what OSHA called "willful and serious safety violations." Borger Refinery Photo by: Philip Klein All Rights Reserved. Photo used with permission of the photographer

The Frederick Daily Leader reported on October 26, 1979 that two refinery workers trying to repair equipment at the Phillips Petroleum refinery at Borger, Texas were killed and 11 other were injured by deadly fumes from a paralyzing gas or acid lead in the area where they were working. One of the injured was in "very critical" condition. The accident occurred when either hydrogen sulfide gas or hydrflouric acid began leaking. "Apparently, ther was just a leakage of gas, said Jim Ormsby, director of human resources at Phillips. Ormsby said the situation had been brought under control and work at the plant was not interrupted.[141] Officials said they were relatively certain the disabling fumes were from hydrogen sulfide gas that dissipated quickly, but the substance could have been dhydroflouric acid. A Lubbock, Texas, doctor said strong doses of hydrogen sulfide immediately paralyze the respiratory system and can kill within seconds. The gas is very dangerous, the doctor said, because it quickly overcomes a person's sense of smell. Ormsby said the 13 workers had been overhauling an "alkylation unit" at refinery unit 22 in recent weeks and "were getting it ready to start up." The fumes from the leak drifted over a platform crowded with workers after 1 pm, Ormsby said.[142]

Phillips Petroleum was fined $19,600 for violating government safety regulations in connection with the death of the two workers at Borger Refinery. OSHA cited Phillips for "two willful and two serious" safety violations after the two workers fell to their deaths after they inhaled lethal gas on October 25, 1979 during a maintenance check of a special refinery tower at the refinery. Willful violations are those committed with an intentional disregard of, or plain indifference to, the requirements of the Occupational Safety and Health Act and OSHA regulations. A serious violation is defined as one in which there is a substantial probability that death or serious physical harm could result, and the employer knew or should have known of the hazard. Jerry Bailey, OSHA's area director, said that while the autopsies were inconclusive, there was "strong evidence" to show the men died from hydrogen sulfide poisoning.[143] Bailey added that an OSHA inspector noted the two men did not have respirators, breathing equipment or facial protection available to them when toxic gas spewed from a pipe thought to be empty. "We feel that had Phillips been in copliance with regulations, the deaths could have been prevented," Bailey said. [144]

References

  1. Borger by Jane Snyder Agee. Copyright 2012. page 49.
  2. The statement that Borger refinery has a "troubled history" is the result of analysis by Hugh Pickens. See following footnotes.
  3. The Frederick Daily Leader reported on October 26, 1979 that two refinery workers trying to repair equipment at the Phillips Petroleum refinery at Borger, Texas were killed and 11 other were injured by deadly fumes from a paralyzing gas or acid lead in the area where they were working. One of the injured was in "very critical" condition. The accident occurred when either hydrogen sulfide gas or hydrflouric acid began leaking. "Apparently, ther was just a leakage of gas, said Jim Ormsby, director of human resources at Phillips. Ormsby said the situation had been brought under control and work at the plant was not interrupted. Frederick Daily Leader. "Fumes at Refinery Kill Two, Injure 11 Borger Workers" October 26, 1979.
  4. Officials said they were relatively certain the disabling fumes were from hydrogen sulfide gas that dissipated quickly, but the substance could have been dhydroflouric acid. A Lubbock, Texas, doctor said strong doses of hydrogen sulfide immediately paralyze the respiratory system and can kill within seconds. The gas is very dangerous, the doctor said, because it quickly overcomes a person's sense of smell. Ormsby said the 13 workers had been overhauling an "alkylation unit" at refinery unit 22 in recent weeks and "were getting it ready to start up." The fumes from the leak drifted over a platform crowded with workers after 1 pm, Ormsby said. Times-Union. "Fumes From Leakage At Refinery Kill 2" October 26, 1979.
  5. Phillips Petroleum was fined $19,600 for violating government safety regulations in connection with the death of the two workers at Borger Refinery. OSHA cited Phillips for "two willful and two serious" safety violations after the two workers fell to their deaths after they inhaled lethal gas on October 25, 1979 during a maintenance check of a special refinery tower at the refinery. Willful violations are those committed with an intentional disregard of, or plain indifference to, the requirements of the Occupational Safety and Health Act and OSHA regulations. A serious violation is defined as one in which there is a substantial probability that death or serious physical harm could result, and the employer knew or should have known of the hazard. Jerry Bailey, OSHA's area director, said that while the autopsies were inconclusive, there was "strong evidence" to show the men died from hydrogen sulfide poisoning. The Prescott Courier. "Oil Firm Fined in Deaths" December 28, 1979.
  6. Bailey added that an OSHA inspector noted the two men did not have respirators, breathing equipment or facial protection available to them when toxic gas spewed from a pipe thought to be empty. "We feel that had Phillips been in compliance with regulations, the deaths could have been prevented," Bailey said. Lawrence Journal-World "Report Says Phillips Hit with Safety Fine" December 30, 1979.
  7. Dan Murtaugh reported at Businessweek on July 3, 2014 that Phillips plans to shut most of its Borger Refinery for as long as 35 days after it was unable to recover from a power failure, according to a report from Energy News Today. Phillips declined to comment on the report when contacted by Bloomberg. Businessweek. "Trains Keep Rolling From Permian Basin on Crude Discounts" by Dan Murtaugh. July 3, 2014.
  8. Greg Garland told analysts during the 2nd quarter earnings conference on July 30, 2014 that with Borger's major turnaround in March and the 30-day-plus outage in July, Borger hasn’t run well this year. "So we’re working on improving operational reliability at Borger really to me are expectations. But the July event, by the way Borger is back up and running today. But July then was unplanned outage." Seeking Alpha. "Phillips 66's (PSX) CEO Greg Garland on Q2 2014 Results - Earnings Call Transcript" July 30, 2014.
  9. Phillips said it would shut most of the production units at its refinery in Borger, Texas, over the July Fourth weekend to start a month of repairs following a power outage early this week, said sources familiar with operations at the refinery. The company had already been planning to shut the refinery’s 25,000 b/d delayed coking unit over the weekend for a three-week overhaul, sources told Reuters. Trade sources have said the refinery was planning a multi-unit overhaul this month to correct operational problems created by the power outage. US Department of Energy. "Energy Assurance Daily" July 7, 2014
  10. CSP Daily News reported on March 26, 2014 that Phillips will pay a $500,000 penalty for violations of the Clean Air Act at the Borger Refinery in Borger, Texas, the Lake Charles Refinery in Westlake, La., the Wood River Refinery in Roxana, Ill., the Alliance Refinery in Belle Chasse, La., the Sweeny Refinery in Old Ocean, Texas, and several terminals across the country. Phillips also agreed to retire more than 21 billion sulfur credits that could have been used in the production of gasoline, which could potentially lead to significantly less pollution from vehicles. In a administrative settlement agreement, the EPA alleged that the company generated invalid sulfur credits between 2006 and 2012 and that Phillips failed to comply with recordkeeping, reporting, sampling and testing requirements at the five refineries. EPA discovered these violations during facility inspections and through a review of company records, which included the results of third-party company audits required by the Clean Air Act. CSP Daily News. "Phillips 66 to Pay $500,000 Over Clean Air Act Violations" March 26, 2014.
  11. Channel 7 Amarillo reported on March 18, 2014 that two Phillips employees and a contractor were injured in an accident at Borger refinery that took place at about 5 pm on March 18, 2014. The injured were taken to Golden Plains Community Hospital to receive medical treatment and the condition of the individuals is not life threatening. One employee is at Golden Plains Community Hospital, the second has been transported to the Lubbock Burn Center, and the contract worker is under observation at Golden Plains Community Hospital. Scanner traffic indicated the injured had been exposed to hydrogen sulfide. Phillips is investigating the incident. Channel 7 Connect Amarillo. "Phillips 66 employees hospitalized" by Larry Lemon. March 18, 2014.
  12. According to the "Borger News-Herald" the incident occurred during turnaround at the unit that handles hydrofluric (HF) acid. The hydrofluric acid unit was shut down at the time the accident occurred. Phillips did not confirm the exact nature of the incident. Phillips is investigating the cause and implications of the incident and details are still being clarified as the influx of turnaround workers has increased traffic inside the plant. "We want to figure out exactly what happened," said Dennis Nuss, a Senior Advisor for Phillips 66 who works with Project Communications. "We want to make sure that something similar will not happen again." When asked if the incident was due to either a chemical exposure or a fire, Nuss said, "There was no fire." The Borger News-Herald is reaching out to contract companies and contractors for more information and will update the story as more information is released. Borger News-Herald. "Workers injured in industrial accident at Phillps 66" by JC Cortez. March 19, 2014.
  13. KVII-TV in Amarillo, Texas, reported on May 1, 2012 an employee at the Phillips 66 refinery in Borger, Texas fell from a height of 100 feet at about 3pm and was taken to the Golden Plains Community Hospital in Borger where he died. "ConocoPhillips deeply regrets the loss of our employee and wishes to extend sympathy to the employee's family, friends and co-workers," said spokesman Rich Johnson. "ConocoPhillips is investigating the cause of the accident." Officials with Phillips 66 say the incident remains under investigation. It is reported that this is the first fatality at the refinery in 25 years. Reuters. "Employee dies after fall at Phillips refinery" May 1, 2012.
  14. ConnectAmarillo.com "Borger ConocoPhillips employee dies after falling" by Travis Ruiz. May 1, 2012.
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  46. Department of Energy. "Energy Assurance Daily" July 17, 2015
  47. Department of Energy. "Energy Assurance Daily" July 13, 2015
  48. Department of Energy. "Energy Assurance Daily" July 1, 2015
  49. Department of Energy. "Energy Assurance Daily" June 22, 2015
  50. Department of Energy. "Energy Assurance Daily" June 19, 2015
  51. Nasdaq. "Phillips 66 Reports 'Process Problems' at Borger Refinery" June 19, 2015.
  52. Department of Energy. "Energy Assurance Daily" June 18, 2015
  53. Reuters. "Phillips 66 reports planty outage in Borger due to storm
  54. Department of Energy. "Energy Assurance Daily" June 15, 2015
  55. Department of Energy. "Energy Assurance Daily" June 5, 2015
  56. Department of Energy. "Energy Assurance Daily" June 3, 2015
  57. amarillo Globe News. "Moore County environmental violations prompt thousands in government fines" April 30, 2015.
  58. Department of Energy. "Energy Assurance Daily" April 28, 2015
  59. Department of Energy. "Energy Assurance Daily" April 27, 2015
  60. Department of Energy. "Energy Assurance Daily" April 13, 2015
  61. Department of Energy. "Energy Assurance Daily" March 21, 2015
  62. Department of Energy. "Energy Assurance Daily" February 24, 2015
  63. Department of Energy. "Energy Assurance Daily" January 23, 2015
  64. Department of Energy. "Energy Assurance Daily" December 31, 2014
  65. United Steelworkers. US Department of Energy. "Energy Assurance Daily" December 22, 2014
  66. Reuters. "Phillips 66 shuts FCC at Borger, texas refinery for work" December 2, 2014.
  67. United Steelworkers. US Department of Energy. "Energy Assurance Daily" November 14, 2014
  68. United Steelworkers. US Department of Energy. "Energy Assurance Daily" November 12, 2014
  69. Hellenic Shipping News Worldwide. "Platts Pre-Report Survey of Analysts’ EIA/API Estimates Suggests 1.2 Million-Barrel Build in U.S. Crude Oil Stocks" November 5, 2014.
  70. The Globe and Mail. "Refinery outage hurts Cenovus quarterly profit" October 23, 2014
  71. Seeking Alpha. "Cenovus Energy's (CVE) CEO Brian Ferguson on Q3 2014 Results - Earnings Call Transcript" October 23, 2014.
  72. United Steelworkers. US Department of Energy. "Energy Assurance Daily" October 20, 2014
  73. United Steelworkers. US Department of Energy. "Energy Assurance Daily" October 17, 2014
  74. United Steelworkers. US Department of Energy. "Energy Assurance Daily" September 25, 2014
  75. Platts. "SURVEY: US crude stocks likely fell 2 million barrels last week" September 2, 2014.
  76. reuters. "Phillips 66 reports FCCU shutdown at Borger, Texas, refinery" August 11, 2014.
  77. United Steelworkers. US Department of Energy. "Energy Assurance Daily" August 56 2014
  78. Seeking Alpha. "Phillips 66's (PSX) CEO Greg Garland on Q2 2014 Results - Earnings Call Transcript" July 30, 2014.
  79. Seeking Alpha. "Phillips 66's (PSX) CEO Greg Garland on Q2 2014 Results - Earnings Call Transcript" July 30, 2014.
  80. Businessweek. "Trains Keep Rolling From Permian Basin on Crude Discounts" by Dan Murtaugh. July 3, 2014.
  81. US Department of Energy. "Energy Assurance Daily" July 7, 2014
  82. US Department of Energy. "Energy Assurance Daily" July 1, 2014
  83. US Department of Energy. "Energy Assurance Daily" May 8, 2014
  84. US Department of Energy. "Energy Assurance Daily" May 5, 2014
  85. Ponca City News. "Nearly News. April 28, 2014.
  86. CSP Daily News. "Phillips 66 to Pay $500,000 Over Clean Air Act Violations" March 26, 2014.
  87. Channel 7 Connect Amarillo. "Phillips 66 employees hospitalized" by Larry Lemon. March 18, 2014.
  88. Borger News-Herald. "Workers injured in industrial accident at Phillps 66" by JC Cortez. March 19, 2014.
  89. Oil and Gas Journal. "Phillips 66 Partners to acquire $700M in Phillips 66 assets" February 14, 2014.
  90. Daily Finance. "This Could Be a Big Buy for Phillips 66 Partners LP" by Aimee Duffy. February 14, 2014.
  91. United Steelworkers. Refinery Events - (Dec. 20, 2013 through Dec. 31, 2013)
  92. United Steelworkers. Refinery Events - (Dec. 20, 2013 through Dec. 31, 2013)
  93. News on 6. "Bartlesville's Phillips 66 Lands Huge Jet Fuel Contract" December 13, 2013.
  94. Amarillo Globe-News. "Phillips to pay $300K settlement for bird deaths" by Jim McBride. November 27, 2012.
  95. Reuters. "Phillips 66 says planned work underway at Borger, Texas refinery" November 19, 2013.
  96. Businessweek. "Phillips 66 Borger Refinery Said to Plan Unit Repairs in March" by Lynn Doan. November 11, 2013.
  97. United Steelworkers. Refinery Events - (Nov. 1, 2013 through Nov. 7, 2013)
  98. United Steelworkers. Refinery Events - (Oct. 25, 2013 through Oct. 31, 2013)
  99. Bloomberg. "Phillips 66 Said to Idle Borger Catalytic Cracker for Repair" by Barbara Powell. October 18, 2013.
  100. United Steelworkers. Refinery Events - (Oct. 11, 2013 through Oct. 17, 2013)
  101. United Steelworkers. Refinery Events September 20, 2013— September 26, 2013
  102. United Steelworkers. "Weekly List of Refinery Events" by Lynne Hancock. August 13, 2013.
  103. United Steelworkers. "Weekly List of Refinery Events" by Lynne Hancock. August 13, 2013.
  104. United Steelworkers. Refinery Events - (Aug. 2, 2013 through Aug. 8, 2013)
  105. Hydrocarbon Processing. "Phillips 66 reports process upset at Borger Refinery in Texas" July 16, 2013.
  106. San Antonio Express-News. "Drought, drilling add up to problems for migrating birds" by Jennifer Hiller. July 14, 2013.
  107. United Steelworkers. Refinery Events - (July 5, 2013 through July 11, 2013)
  108. United Steelworkers. Refinery Events - (June 14, 2013 through June 20, 2013)
  109. Businessweek. "Gulf Gasoline Weakens as Valero, Phillips 66 Finish Plant Work" by Christine Harvey. May 6, 2013.
  110. Fox Business. "Refinery Status: Phillips 66 Refinery Has -2-" April 30, 2013.
  111. Fox Business. "Refinery Status: Phillips 66 Borger, Texas" March 13, 2013.
  112. Nasdaq. "Refinery Status: Planned Maintenance Begins in Phillips 66's Borger Unit" February 27, 2013.
  113. United Steelworkers. Refinery Events - (Feb. 22, 2013 through Feb. 28, 2013)
  114. Seeking Alpha. "Phillips 66's CEO Discusses Q4 2012 Results - Earnings Call Transcript" January 30, 2013.
  115. Nasdaq. "Refinery Status: No Production Impact From Malfunction at Valero's Wilmington Refinery" December 11, 2012.
  116. Fox News. "Refinery Status: Phillips 66 Continues -2-" December 5, 2012.
  117. Fox News. "Refinery Status: Phillips 66 Continues -2-" December 5, 2012.
  118. Businessweek. "Texas Oils Rise on Speculation Borger Refinery Resumed Output" by Edward Welsch. December 5, 2012.
  119. Businessweek. "Texas Oils Weaken as Phillips 66 Works to Start Borger Refinery" by Edward Welsch. November 30, 2012.
  120. Businessweek. "Texas Oils Weaken as Phillips 66 Works to Start Borger Refinery" by Edward Welsch. November 30, 2012.
  121. Businessweek. "WTI at Midland Slips on Prolonged Repair Time at Borger Refinery" by Edward Welch. November 26, 2012.
  122. Bloomberg. "Gulf Gasoline Rises as Phillips 66 Extends Borger Refinery Work" by Christine Harvey. November 20, 2012.
  123. Fox Business. "Phillips 66 Reports SRU Process Upset at Borger, Texas, Refinery" November 6, 2012.
  124. Philips 66. "Phillips Third Quarter Earnings Conference" October 31, 2012
  125. Nasdaq. "Refinery Status: Coker Unit Snag Reported at Exxon Joliet" September 26, 2012.
  126. Fox Business. "Phillips 66 Reports Process Upset at Refinery in Borger, Texas" August 8, 2012.
  127. Borger News Herald. "Phillips 66 seeing success in Borger" by Michelle Berry. July 11, 2012.
  128. Borger News Herald. "Phillips 66 seeing success in Borger" by Michelle Berry. July 11, 2012.
  129. Reuters. "Phillips 66 reports process upset at Borger refinery" June 13, 2012.
  130. Reuters. "Phillips JV Borger, Texas, refinery report upset -filing" June 3, 2012.
  131. Reuters. "Phillips 66 reports equipment malfunction at Borger refinery" May 25, 2012.
  132. United Steelworkers. "Refinery Events - (May 25, 2012 through May 31, 2012)"
  133. Nasdaq. "Refinery Status: ExxonMobil Calif. Refinery Flare Not Due To Equipment Breakdown"
  134. Reuters. "Phillips 66 reports process upset at Borger refinery" May 14, 2012.
  135. Texas Commission on Environmental Quality "Emission Event Reporting Database"
  136. United Steelworkers. "Refinery Events - (May 4, 2012 through May 10, 2012)"
  137. Texas Commission on Environmental Quality. "Emission Event Reporting Database" May 10, 2012
  138. United Steelworkers. "Process Upset Leads to Emissions at Borger Refinery"
  139. Reuters. "Employee dies after fall at Phillips refinery" May 1, 2012.
  140. ConnectAmarillo.com "Borger ConocoPhillips employee dies after falling" by Travis Ruiz. May 1, 2012.
  141. Frederick Daily Leader. "Fumes at Refinery Kill Two, Injure 11 Borger Workers" October 26, 2979.
  142. Times-Union. "Fumes From Leakage At Refinery Kill 2" October 26, 2979.
  143. The Prescott Courier. "Oil Firm Fined in Deaths" December 28, 1979.
  144. Lawrence Journal-World "Report Says Phillips Hit with Safety Fine" December 30, 1979.
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Master Index of Articles about Phillips 66

The North Tower and the South Tower, part of Phillips 66's Refinery Complex in Ponca City, contain over 250,000 square feet of Class A office space that is essentially unused. Research West contains another 230,000 square feet of unused Class A office space. Photo: Hugh Pickens
Ponca: A Core Asset. Phillips CEO Greg Garland told members of the Bartlesville Chamber of Commerce on August 27, 2013 that the refinery at Ponca is a 'core asset' of Phillips 66. The refinery in Ponca City "is making very good money for us," Garland told his Bartlesville audience. Garland added that he expects gas demands in the U.S. to decline by 20 percent in the next 10 years, but that demand for refined products in South America and Africa will more than offset that decline.

by Hugh Pickens, Ponca City Oklahoma

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The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal <html>
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Corporate

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Strategic and Financial

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Business Segments

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Stock Market

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Reference

Refining Business Segment

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Increasing Profitability in Refining Business Segment

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Detailed Look at Ponca City Refinery

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Other Phillips Refineries

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Other Locations