Koch Industries, Inc. - Koch Partners with Austin for Clean Central Texas Air
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Environmental stewardship programs at the Texas, shown here, and Minnesota refineries and the Illinois chemical facility have earned Wildlife Habitat Council certification.
July 23, 2008


About Koch Industries, Inc.

Date: 2/25/1999
Contact: Katie Stavinoha
281-363-7260
katie.stavinoha@kochind.com
Mary Beth Jarvis
Koch Industries
316-828-3756
jarvism@kochind.com

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Koch Partners with Austin for Clean Central Texas Air
Company's Clean Fuels Program to Help City Avoid Ozone Non-attainment Sanctions

Austin, Texas- Austin Mayor Kirk Watson, Koch Petroleum Group officials, and state and local environmental leaders announced today that Koch will provide clean-burning low Reid Vapor Pressure (RVP) and low sulfur fuels to the Austin metropolitan area at the beginning of the 1999 summer ozone season.

This initiative, part of Koch's on-going environmental excellence program, comes well ahead of an anticipated regulatory deadline which is expected to be set soon by the Texas Natural Resource Conservation Commission (TNRCC).

The announcement of this voluntary clean-air initiative was made by Joe Coco, manager of Koch's Corpus Christi Refinery, Austin Mayor Kirk Watson; TNRCC Chairman Robert Huston; and Paul Helliker of the Central Texas Clean Air Force.

"Today, Koch Petroleum Group is initiating a partnership with the leaders in Central Texas to ensure cleaner air," said Coco. He applauded Mayor Watson, Council Member Bill Spelman and Chairman Huston for their daily efforts to protect the environmental health of Austinites and all Texans, saying that Austin always has set the pace for finding innovative ways to protect both its environment and its economic vitality.

"Our decision to launch a Clean Fuels program now is based on our desire to follow through with a personal commitment to Mayor Watson, the Austin City Council and the entire Central Texas community," said Coco. "At the end of the day, we hope that Central Texans will want Koch to live and work here because of the commitment we are making to clean air."

"Koch Industries is doing its part to prevent Central Texas from going non-attainment, and we are thankful," said Mayor Watson. "Without this action, our metropolitan area likely would not meet the EPA's attainment standards for clean air in the coming year, jeopardizing millions of dollars in lost highway funds, in addition to the cost of additional regulatory requirements that would be leveled by the EPA."

Mayor Watson also praised Koch for its commitment to helping Austin retain its reputation as the "Clean Air City" and welcomed the new partnership. "Koch is a part of this community, and I am tremendously optimistic about the promise this partnership holds for our city. Koch must be applauded for initiating the Clean Fuels Program," said Watson. "Koch's action shows a real dedication to a clean environment: this is a real win for Koch and our region."

"I commend the local officials and the private sector for cooperating to proactively anticipate and address air pollution problems," said Greg Cooke, Regional Administrator for Region VI of the Environmental Protection Agency. "Providing cleaner gasoline to the citizens of Austin now makes it possible for every citizen to take part in cleaning up our air."

Chairman Huston added that Koch is a recognized leader in the refining industry. "In recent months Koch has invested in a partnership with the TNRCC to develop better air monitors, and has spent $40 million to create a new Central Control Center at their Corpus Christi refinery to improve safety and operational efficiency," said Huston.

"Koch has also been a partner in our very important series of voluntary waste-reduction initiatives. For several years, Koch has been a member of Clean Industries 2000 in which companies voluntarily commit to reduce waste by at least 50 percent by the year 2000. And, most recently, Koch was among the first group of companies in Texas to announce voluntary reductions of `grandfathered' air emissions," Huston added.

"Through all of those efforts, and with this announcement today, Koch is proving it is a responsible corporate partner and is helping improve the Texas environment," Huston concluded.

The fuels that Koch will begin to ship to Austin this Spring are a low RVP for the lower grades of gasolines and Koch will continue to provide low sulfur for premium grades. Low RVP fuel evaporates less easily than conventional gasoline, according to the TNRCC, resulting in less tailpipe emissions from automobiles and, therefore, the release of lower amounts of volatile organic compounds (VOCs) into the environment. Low sulfur gasolines produce less Nitrogen Oxides (NOx). In the presence of sunlight, VOCs and Nitrogen Oxides react to form ozone, a type of pollutant that forms a major part of urban smog.

"The people of Central Texas face a daunting challenge to keep the air clean," added Helliker. "Koch's voluntary commitment to take the lead in cleaning our air in Central Texas not only relieves the immediate threat of non-attainment, but also sets an example for other companies to follow."

"Koch wants to show the community that economic growth and environmental protection can go hand-in-hand without the need for government mandates," Coco concluded. "Market-based solutions should always be the preferred option when tackling any problem including how to clean our air. However, success requires a partnership between business, local government and regulators to discover environmental solutions that are workable and cost effective."

Koch Industries, Inc. through its subsidiaries, employs 16,000 people worldwide and is involved in virtually all phases of the oil and gas industry, as well as in agriculture, chemicals, chemical technology products, energy services, asphalt products, metals and minerals services, real estate and financial investments. For more information on Koch, refer to www.kochind.com or www.kochenvironment.com on the Internet.

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