United States         Air and Radiation        EPA420-R-99-027
              Environmental Protection                   August 1999
              Agency
vvEPA      In-Use Marine
              Diesel Fuel
                                         > Printed on Recycled Paper

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                                                                          EPA420-R-99-027
                                                                                August 1999

                      Engine Programs and Compliance Division
                              Office of Mobile Sources
                        U.S. Environmental Protection Agency
                                Prepared for EPA by
                               ICF Consulting Group
                                 9300 Lee Highway
                                    Fairfax, VA

                           EPA Contract No.68-C-98-170
                             Work Assignment No. 0-4
                                     NOTICE

    This technical report does not necessarily represent final EPA decisions or positions.
It is intended to present technical analysis of issues using data which are currently available.
         The purpose in the release of such reports is to facilitate the exchange of
      technical information and to inform the public of technical developments which
        may form the basis for a final EPA decision, position, or regulatory action.

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I.  Purpose

The primary goal of this task is to identify the fuel properties, particularly sulfur content for different
types and grades of marine diesel fuels.  Also, any variations by region were developed. The secondary
goal is to characterize the use patterns of these fuels.  These included variation by region and any trend
analysis. For both goals, efforts were made to present the information and discuss the results separately
for commercial marine fuels and recreational marine fuels. In the process of conducting this task, ICF
identified critical information about the types of diesel fuels used for commercial and recreational
purposes. In addition to the above information, ICF needed to clarify the terms that are used in the
industry when referring to diesel marine fuels.  The results of the task are presented in text and tables.
The deliverable is organized as follows:

II.      Summary of Important findings
III.     Background on Fuels
IV.     Clarification  of Terminology for Diesel Marine Fuels
V.      Fuels Used for Commercial and Recreational Marine Purposes
VI.     Fuel Properties
               A. Approach
               B. Results
                      1.  Fuel Specifications
                      2.  Fuel Actual Properties
                      3.  Fuel Property Variation and Trends
VII.     Fuel Usage
               A. Approach
               B. Results
                      1.  Use of Vessel Bunkering and Recreational Marine Fuels
                      2.  Fuel Use Regional Variations
                      3.  Fuel Use Patterns

Appendix 1 - Estimate of Land Based Fuel Rebranded for Diesel Marine Fuel Use

II. Summary of Important Findings

•   The marine fuels  used in recreational marine operations are primarily off-highway 2-D and on-
    highway 2-D. The marine fuels used in commercial marine operations are primarily distillates
    intermediate and  residual oil. Thus, in this study to compare sulfur and fuel use information for
    recreational and commercial purposes, we compared data for off-highway 2-D and on-highway 2-D
    with distillates, intermediate and residual oil.
•   The marine fuel industry uses specific names for distillate, intermediate and residual fuels.
    Marine diesel fuel is not a general term, but refers specifically to an intermediate type fuel.
•   Diesel fuel used for recreational purposes generally has lower sulfur than diesel fuel used for
    commercial purposes.
•   Diesel fuel used for recreational purposes is a small fraction of the diesel fuel used for
    commercial marine purposes.
•   Fuel testing services, marinas,  and refineries provided the wealth of property information on marine
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    fuels. Ports had no such property information.
•   In a Northern California marina, No 2 on-highway is used as recreational marine fuel. In other
    selected marinas in parts of the country, No 2 off-highway is used. Thus, for recreational marine
    fuel, Northern California has much lower sulfur levels than recreational marine fuel in other parts of
    the country.
•   Actual sulfur content for residual and intermediate marine fuels (e.g. commercial use) are not
    widely available.

The data and supporting information for these findings are provided below.

III. Background on Fuels

In the distillation processing (boiling off) of crude oil, there are four broad product fractions or
categories generated: refinery gas (primarily methane, ethane and hydrogen), liquefied petroleum gas,
(primarily propane and butane), gasoline, and distillate fuels.  Each of these fuel categories boils at
higher temperature ranges, until the oil will not boil without thermally decomposing. The nonboiling
fraction is called residuum or residual oil.

Distillate fuels are further subdivided into several categories for specific uses. The "lightest," or lowest
temperature boiling fraction (all distillate fuels broadly overlap in boiling range) is called kerosene, and
is used for commercial jet turbine engines fuels, for small heaters and for wick-fed illuminating lamps.
The next fraction, used during cold weather conditions for automotive or truck fuels in "compression
ignition" engines, is called "diesel" fuel. The next higher boiling fraction is used for residential heating
furnaces, called "home heating oil." This same boiling range oil is also used in warmer conditions as
diesel fuel for larger land-based, on- and off-road engines, such as trucks, busses, earth moving and
material lifting  and moving equipment, farm equipment and railroad diesel locomotives.  The next
heavier fraction supplies fuel for industrial heaters and boilers. Finally, the "heaviest," or highest boiling
distillate fractions are often blended with residual oil to make fuels for large steam boilers and, with fuel
preheating, for very large compression ignition engines, such as ocean-going  ships. Small and medium
sized marine vessels use distillate fuels in several of these land-based categories, as described below.

IV. Clarification of Terminology for Diesel Marine Fuels

There are two basic types of marine fuels: distillate and residual. A third type of marine fuel is a mixture
of these two basic types, commonly called "intermediate." Distillate fuel, as the name implies, is
composed of petroleum fractions of crude oil that are separated in a refinery by a boiling process, called
distillation.  Residual fuel or "residuum" is the fraction that did not boil, sometimes referred to as "tar" or
"petroleum pitch." Diesel fuel for marine use has the following types and grades:
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                                           TABLE 1
                           DIESEL FUEL TYPES FOR MARINE USE
Fuel Type
Distillate
Intermediate
Residual
Fuel Grades
DMX, DMA, DMB, DMC
IFO 180 380
RMA-RML
Common Industry Name
Gas Oil or Marine Gas Oil
Marine Diesel Fuel or
Intermediate Fuel Oil (IFO)
Fuel oil or Residual Fuel Oil
To communicate effectively in a specialty field like "marine fuels" it is necessary to be clear on the
definitions and jargon used in this industry (which is somewhat different from the fuel type names
above). In the marine industry, distillate fuels are commonly called "Gas Oil" or Marine Gas Oil;
residual fuels are called Marine Fuel Oil or Residual Fuel Oil; and intermediate types are called "Marine
Diesel Fuel," or Intermediate Fuel Oil (IFO) (see Table 1).  While the term "diesel fuel" for land based
automobile and truck use is 100% distillate, in the marine industry Marine Diesel Fuel is the blend of
distillate and residual oils (intermediate types). The 100% distillate type fuel in the marine industry is
the Marine Gas Oil (implying by this name that it was boiled into a gas, then condensed into a liquid oil).
Fuel Oil, or Residual Fuel Oil, refers to fuels that are primarily non-boiling fractions. Depending on the
pressures and temperatures in refinery distillation processes, and the types of crude oils, slightly more or
less gas oil that could be boiled off is left in the non-boiling fraction, creating different grades of
Residual Fuel Oils.  In other words, intermediate grades of fuel  oil can be made directly in the distillation
process or by blending with distillate. The term "intermediate"  is more a colloquial term than a separate
fuel type as defined by the American Society of Testing and Materials (ASTM) in the U.S., or in world
standards.12'13'14

Another clarification that is necessary in this study involves the terms "recreational" versus
"commercial" uses of marine vessels. The  Environmental Protection Agency, EPA, has defined the
terms "recreational marine engine" and  "recreational vessel" in 40 CFR Part 94: Control of Emissions of
Air Pollution From New CI Marine Engines at or Above 37 kW: Proposed Rule.  Summarizing this
definition, recreational implies "strictly for personal pleasure," or leased, rented or chartered to a group
no larger than six people for their pleasure. Commercial implies a business interest in hauling, pushing
or towing cargo, or servicing such cargo businesses, all for the purpose of earning money. "Racing," or
"competition," is yet another category distinct from recreational and commercial. While a very few
wealthy individuals may be able to own and operate ocean going large vessels, the classes of
"recreational" marine vessels with compression- ignition engines are, by and large, yachts and
recreational fishing boats.13

V. Fuels Used for Commercial and Recreational Marine Purposes

We obtained much anecdotal information related to fuel use patterns for commercial and recreational
marine fuels. Sources include industry experts in fuel manufacturing and marketing13'20, marine fuel
brokering services12, marine fuel supply at ports15 and marinas16'17> 18> 19, and marine fuel testing services.14
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One common theme is that the world of commercial marine fuel supply is totally separate from the world
of recreational marine fuels.  Diesel fuel for marine applications depend on three things: engine used,
cost, and availability.  Commercial marine businesses have the higher volume and low-cost incentives to
arrange deals with refiners to produce tailored marine fuels that are most cost effective for their engines.
Commercial marine businesses arrange for fuels that involve less refining (leaving the sulfur in the fuel),
and therefore lower cost than other diesel fuels.  Commercial port fuel services and marine fuel broker
services reported that commercial marine fuels are delivered by pipeline, boat or barge. The product that
is supplied as DMA (Marine Distillate fuel A) is sometimes specially manufactured at local refineries
with a higher sulfur content and lower price  than land-based fuels rebranded for marine use.  When that
supply is short of demand, "Home Heating Oil" (No. 2 fuel oil) is used, provided the flash is above 60
degrees C, which  it normally is.  Similarly, DMC is sometimes supplied by local refineries from "cycle
oil" (lower boiling point than No. 2 fuels), and is sometimes blended in the supply terminal from DMA
and residual fuel oils.

Commercial marine fuel brokers, marine fuel testing service experts and commercial marine fuel supply
services all report that DMA is the common fuel for tugboats, fishing boats, crew boats, drilling rigs, and
ferry boats.  Ocean-going ships that take residual fuel oil bunkers also take distillate fuels for use in
auxiliary engines  and sometimes for use in port.  The common fuels are DMC, IFO-180 and IFO-380,
depending on the  specific engines in service. DMB is infrequently specified, and is not available in all
ports. Where it is not available, DMA is supplied, sometimes in a barge that has transported DMC or
IFO (hence, a "dirty" cargo hold that would  contaminate DMA).

In contrast to commercial marine businesses, recreational boat owners have no volume leverage, and less
cost-reduction incentives to arrange for special fuels.  With the large overlap in boiling range with other
distillate  fuels, the sources of recreational marine fuels are often land-based fuels that can meet or exceed
all specifications of the marine fuel. Therefore, distributors of recreational fuels take what is most
available, which is truck and tractor diesel fuel and home heating fuel. Both of these fuel grades are
given the designation "Number 2" (or No. 2-D diesel) fuel. All marinas, and all fuel suppliers, have
reported that diesel fuel is delivered to marinas by tank truck, and the fuel is the same as provided to
either on-road service stations or off-road supply stations.  Some marinas17'1S said that their diesel fuel is
dyed red  (off-road) and others19 said that it is "clear" (on-highway diesel). For example, the a Chevron
diesel fuel expert13 said that high sulfur diesel fuel is in short supply on the coasts, but much higher
supply in the agriculture regions of the plains states.  The fuel supply service for the St. Francis Yacht
Club in San Francisco, CA19, said that they provide only one diesel fuel, and it is clear (low sulfur on-
highway fuel). In the North Eastern and North Central (Great Lakes) regions of the U.S., No. 2 "home
heating oil" is commonly used for residential heating in the winter months. In these regions, the No. 2
fuel refined primarily in Gulf Coast refineries and transported north by pipeline is rebranded for certain
marine fuels. On  the West Coast, "on-" and "off-highway" No. 2 diesel fuel is commonly rebranded for
certain marine fuel uses (See Appendix 1 for Estimate of Land Based Fuel Rebranded for Diesel Marine
Fuel Use). For these reasons, the properties of land-based fuels and marine fuels will be compared and
discussed in the report.
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VI. Fuel Properties

       A. Approach:

Fuel properties are the physical and chemical measures of fuel qualities that relate to fuel performance
and handling characteristics.11 We have analyzed fuel properties from three perspectives: specifications,
actual properties and regional variations of properties. Information is provided for diesel marine fuels
used in both commercial and recreational purposes. Sulfur content was of primary regulatory interest.
Other properties compared include viscosity (an important determinant of fuel performance), cetane, and
ash (an indication of the amount of heavy components in a fuel).
Fuel property standards are reported from six sources, as follows:
        1.      American Society for Testing and Materials (ASTM);6
        2.      Conseil International des Machines a Combustion (CIMAC);7
        3.      International Standards Organization (ISO);8
        4.      Platt's Guide to Petroleum Specifications;5
        5.      Major Petroleum Refining and Marketing Companies (Mobil and Shell).9'10> 22
Actual properties are reported from three sources, as follows:
        1.      DetNorske Veritas (DNV) Petroleum Services;2
        2.      National Institute for Petroleum and Energy Research (NIPER);3
        3.      Anecdotal information from fuel marketing and brokering industry experts.
       B. Results:

               1. Fuel Specifications

Table 2 shows selected ASTM specifications of marine and land based fuels that are used in compression
ignition engines. Specifications of interest are shown for IFO-180 and 380, DMA, DMB, DMC, and the
heaviest residual fuels, RML-55. The land-based fuels are known to supply recreational marine uses.
Also, Table 2 includes two "burner" fuels that are not manufactured for compression ignition engines,
but as typically formulated, do serve as a source for marine fuels.  One important difference between
land-based distillate fuels and marine fuels, from the environmental perspective, is sulfur content. Land-
based fuels are generally required by state and federal regulations to have lower sulfur levels than
equivalent marine fuels. Sulfur  is a naturally occurring component in varying concentrations in crude
oils. In general the sulfur tends  to concentrate in the higher boiling fractions. Hence, sulfur
concentrations are naturally highest in  residual fuel oil, lower in heavy distillates, and lowest in light
distillates. Removal of sulfur in light distillates does not effect sulfur concentrations in the residual fuel
oil or heavy distillates. In other words, in the manufacture of low sulfur fuels, sulfur does not shift from
lighter fuels to heavier fuels.  Sulfur concentrations are reduced in distillate fuels by a refining process
called "hydro-treating." Sulfur in the fuel is replaced with hydrogen in a catalytic reaction that produces
low sulfur fuel and hydrogen sulfide gas. The hydrogen sulfide is converted to elemental sulfur in
another refinery process, and primarily sold to the chemicals and fertilizer manufacturing industries. In
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some parts of the world (e.g. Canada, Saudi Arabia) where there is no market for sulfur, it is stockpiled
on the land in huge monolithic solid blocks. When land-based fuels are rebranded for marine use, they
will typically be well below the sulfur specifications of the marine fuel.  The land base fuels have a much
lower specification requirements (between 3 and 100 times lower) than the marine fuels. The products in
the table are further described below.

No. 1-D (LS) is a land-based diesel fuel with low sulfur (LS) for "on-highway" automotive, bus and
truck diesel engine use. It is used only in cold seasons and climates when engine starting may be
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                                                        TABLE 2
                            SELECTED ASTM SPECIFICATIONS FOR COMPRESSION IGNITION FUELS
Specification
Flash, °C, min
Kinematic
Viscosity3
cSt @40 °C
Sulfur, % mass,
max
Cetane number,
min
Ash, % mass,
max
Typical %
Distribution4
Land-Use Fuels
On-Highway
No.l-D (LS)
38
min 1.3
max 2.4
0.05
40
0.01
100
Diesel
No.2-D (LS)
52
1.9
4.1
0.05
40
0.01
100
Off-Highway
No.2-D
52
1.9
4.1
0.5
40
0.01
100
Heating Oil
No.2 No.4
38
1.9
3.4
0.5
-
-
100
55
5.5
24.0
-
-
0.10
80-100
Marine Fuels
Distillate Intermediate2 Residual
DMA DMB DMC1 RME/F-25 RMG/H-35 RML 55
60
1.5
6.0
1.5
40
0.01
100
60
11.0
2.0
35
0.01
99+
60
14
2.0
35
0.03
80-100
60
(25)
5.0
-
0.1-0.15
12
60
(35)
5.0
-
0.15-0.2
2
60
(55)
5.0
-
0.2
0
Notes
1.  DMC manufactured both as a straight-run distillate and distillate/residual blend.
2.  RME-25 and RMF-25 bracket IFO-180; RMG-35 and RMH-35 bracket IFO-380.
3.  Kinematic viscosity values in parenthesis, (), are centiStokes @ 100°C.
4.  Typical percent distillate is not a specification.
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difficult with No. 2-D (LS) fuel. The 2-D (LS) fuel has a higher energy output and better natural
"lubricity" of engine fuel injector components than No. 1-D (LS) fuel.  For this reason, No. 2-D (LS) is by
far the most common fuel used in diesel engines for on-highway use.13 No. 2-D is a higher sulfur fuel that
is otherwise identical to No. 2-D (LS), and is intended for "off-highway" use in diesel engine earthmoving
equipment, farm equipment and small portable stationary engines for generators, compressors, machinery
and pumps.  No. 2-D is distinguished from its on-highway low sulfur alternate by a red dye. There is also
a No. 1-D higher sulfur diesel fuel that, again, is for off-highway use in cold seasons and climates. It has
identical specifications as No. 1-D (LS), except for a higher sulfur limit.

No. 1 and No. 2 Fuel Oils are the "burner" fuel equivalents to the diesel engine fuels. No. 2 Fuel Oil,
commonly called "No. 2 Home Heating Oil," is shown in Table 2 because it is a common source of
marine distillate fuels.12'13> 20 For a similar reason, No. 4 Fuel Oil, an industrial furnace and boiler fuel
that may contain a small amount of residual  oil, is shown to compare against similar marine fuels.

Specifications for marine fuels officially carry the first letters "D" signifying "distillate fuel," or "R"
signifying "residual fuels,".  The second letter "M" signifies "marine fuel.". DMA is "marine distillate
fuel A," and is the most common compression ignition engine fuel for small and medium sized marine
engines12 (which are fashioned after land based diesel engines21). DMB has some limited amount of
contamination that DMA may pick up in dirty storage or transfer.12 It is not a fuel that is intentionally
manufactured.12'H15  DMC is intentionally manufactured from either heavier boiling (than No. 2 fuels)
fractions of straight-run distillate, called "cycle oil," or is blended in marine fuel terminals from DMA and
residual fuels.15  No. 4 Fuel Oil has very similar properties as DMC, and where available at lower price
than DMA, is rebranded as DMC.  DMC is listed in the national (ASTM) and international (CIMAC, ISO)
specifications as a "distillate" fuel, but may be considered an intermediate type fuel as the specifications
allow blending with residual oil.

 There are fifteen residual fuels in national and international specifications. Individual grades are
 designated by the letters A through H, K and L, and a number signifying the viscosity limit. For
 example, RMA-10 is "Residual Marine fuel A with a maximum viscosity (at 100 degrees C) of 10
 centistokes. The most common intermediate fuel  oil grades are called IFO-180 and IFO-38013'14. The
 numbers are viscosity limits at the common fuel handling temperature of 50 degrees C, and are
 equivalent to 25 and 35 centistokes at 100 degrees C. Therefore, the official specifications for IFO-180
 are RME-25 and RMF-25; for IFO-380 are  RMG-35 and RMH-3514. Intermediate marine fuels may be
 manufactured by blending residual oil with heavy distillates or from straight run residual oil where the
 temperature and pressures are controlled to leave some heavy distillate in the residuum. The wide
 variety of intermediate and residual marine fuels reflect both the wide variety of properties of residuum
 from different  crude oils as well as the design specifications of engine manufacturers. The large
 compression ignition engines that burn residual fuels are designed only for ocean-going large cargo and
 passenger vessels (rather than being adapted from land based diesel engines)21.

 As shown in Table 2, in all cases, marine fuels are required for safety and insurance reasons21 to have a
 minimum flash of 60 degrees C.

 Table 3 shows a comparison of specifications from different sources for some of these fuels.  ASTM is
 the U.S. national standard comparable to  CIMAC  and ISO for international trade.  Platt's publishes
 worldwide prices of various fuels, and to assure an understanding of the  relationship between price and
 product, they publish a  "Guide to Petroleum Specifications."5 These "specifications" are a mix of
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international standards and common sub-grades. Terms like "Gasoil," and DDO (Distillate Diesel Oil)
are used in some countries
                                       TABLE 3
                        FUEL SPECIFICATIONS COMPARISON

No2-D On
Hwy
Flash
vmln
Sulfur
Ash
No2
Flash
vmln
Sulfur
Ash
DMA
vmln
Sulfur
Ash
DMB
vmln
Sulfur
Ash
DMC
vmln
Sulfur
Ash
IFO-180
vmln
Sulfur
Ash
RMH-45
vmln
Sulfur
Ash
ASTM


52
1.9
4.1
0.05
0.01

38
1.9
3.4
0.50

1.5
6.0
1.5
0.01

11.0
2.0
0.01

14.0
2.0
0.01

(25.0)
5.0
0.10-0.15

(45.0)
5.0
0.20
CIMAC









1.5
6.0
1.5
0.01

2.5
11.0
2.0
0.01

14.0
2.0
0.03

(15.0)
(25.0)
5.0
0.10-0.15

(45.0)
5.0
0.20
ISO









1.5
6.0
1.5
0.01

11.0
2.0
0.01

14.0
2.0
0.05

(25.0)
5.0
0.10-0.15

(45.0)
5.0
0.20
PLAITS


60
-
0.05
-

54.4-60
0.2-0.5

-
0.5





-
1.0-2.0
0.01-0.05

(25.0)
2.5-4.0
0.1-0.2

420-970
2.5-3.5
-
MOBIL


51.7
1.9
4.1
0.05
-

51.7
1.9
4.1
0.5

1.9
6.0
1.0
0.01

11.0
1.5
0.01

14.0
1.8
0.05

(25.0)
4.3
0.10-0.15

(45.0)
5.0
0.20
SHELL







38
1.9
3.4
0.5

7.0
1.0
0.01

11.0
1.5
0.01

13.0
1.8
0.02

(25.0)
4.0
0.10

(45.0)
5.0
0.10
Sterling
Marine Fuels







45
1.7
3.4
0.5
0.01


















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Note 1. All marine fuels have a minimum flash specificity of 60 °C.   Note 2. Viscosities in parentheses () are cSt @ 100
°C.
to designate "Marine Distillate Fuel" or DMA; "Marine Diesel Oil" (MDO) and Intermediate Fuel Oil
(IFO) are used for low viscosity Residual Marine fuel oils. Also, Table 3 presents examples of internal
fuel manufacturing and marketing company specifications (Mobil, Shell, Sterling)9'10> 22. Note that for
marine fuels, the company specifications for sulfur are more stringent than the sulfur specifications from
the  other organizations.

                      2. Fuel Actual Properties

Table 4 compares the actual properties of land and marine distillate fuels with the ASTM specifications
for  Marine Distillate  Fuels DMA, DMB and DMC.  Concerning marine distillate fuels, DNV Petroleum
Services performs a service to the marine industry by sampling and testing marine fuels from many
suppliers in ports throughout the world. The data shown for 1997 includes 967 samples taken in 27 ports
in the U.S. The average value is a simple arithmetic average of all sample results.  The low and high
values are the lowest and highest single results from all tests.  Note that in some cases the result exceeds
the  specification for that fuel grade.  Of particular note is that  the average sulfur level of marine distillate
fuels is half or less the maximum specification. These averages are somewhat of a "dumbbell" average
of the individual measurements, which shows that the fuel is either a rebranded No. 2-D on- or off-
highway fuel, or a manufactured marine fuel that "crowds" the sulfur specification. DNV Petroleum
Services also tests for sulfur for intermediate and residual marine fuels, however, such information is
only available to member subscribers.  DNV do not test flash because it virtually always exceeds the
specification of 60 degrees C.  Average ash content of all three marine distillate fuels also show that very
little heavier distillate components, and virtually no residual components are commonly blended into
marine distillate fuels, even though DMB allows for residual contamination and DMC allows for residual
blending.

National Institute for Petroleum and Energy Research (NIPER), a BDM Petroleum Technologies
affiliate, conducts annual surveys of Diesel Fuel Oils3. The data shown in Table  4 is  the actual properties
for  No. 2-D on-highway (low sulfur) and off-highway diesel fuels.  These fuels are chosen for
comparison with marine distillate fuels because they are often supplied, rebranded, as a marine fuel that
are  often used as recreational marine fuels.  The NIPER data indicates the intended use for the fuels in
the  following categories: City Bus, Truck/Tractor, Railroad, and Stationary/Marine. There are no cases
of a Stationary/Marine use for any of the fuels other than No. 2-D off-highway in the 1994,  1995 and
1998 reports. The data in table 4 are averages for all uses (i.e. fuels are apparently not manufactured
differently for marine use, even though marine fuel  specifications allow higher sulfur levels). The
average sulfur content of the fuels intended for Stationary/Marine (only 3 measurements) were nearly
identical to the average for all uses.
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                                                   TABLE 4
                                  DISTILLATE FUEL ACTUAL PROPERTIES
                             COMPARED WITH MARINE FUEL SPECIFICATIONS

Flash, °C, min
Kinematic Viscosity
cSt @40 °C
Sulfur, % mass
Ash, % mass max
Cetane number (min)
ASTM Specifications
DMA DMB DMC
60 60 60
min 1.5
max 6.0 11.0 14
1.5 2.0 2.0
0.01 0.01 0.03
40 35 35
1997 DNV Petroleum Services1
DMA DMB DMC
2 22
AV 3.2 4.5 6
LO 33
HI 2 10 14 15
AV 0.36 0.91 1.04
LO 0.00 0.01
HI 0.0fi66 2.02 2.28
AV 0.00 0.00 0.01
LO 0.00 0.00
HI O.($04 0.03 0.11
-
1997 No. 2-D NIPER
On-Hwy Off-Hwy
AV 73
LO 73
HI 56 109 54
AV 2.63 104
LO 2.79
HI 1.9(f10 2.00
AV 0.35 4'730.293
LO 0.028
HI O.($d47 1.000
AV 0.002 0.002
LO 0.000
HI O.($@io 0.010
AV 44.8
LO 45.8
HI 40 (f 0.8 394
Note 1. Average, Lowest and Highest result from 195 DMA, 437 DMB and 335 DMC samples from 27 US ports. The number of DMB
samples exceed the number of DMA and DMC samples because the clients who requested the testing operate large ocean-going ships and the
most common distillate fuel used by ocean-going ships is DMB. For the medium and small engine vessels, such as tugs, fishing boats, ferries,
etc., the most predominant marine fuel is still DMA.
Note 2. Virtually always greater than 60 °F.
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               3. Fuel Property Variations and Trends

Table 5 shows regional variations in marine fuel properties by East Coast (PADD district 1), Great Lakes
(PADD II), Gulf Coast (PADD III), and the West Coast (PADD V). The DNV Petroleum Services data
includes twelve ports in PADD I, one U.S. Port in PADD II (Detroit, we added Montreal to provide more
complete data), eight ports in PADD III, zero ports in PADD IV (Rocky Mountains), and five ports in
PADD V. NIPER data is divided into U.S. regions that approximate PAD districts.  Note that there is
very little variation in sulfur, viscosity and ash for DMA and No. 2-D on- and off-highway fuels.  There
is significant variation for DMB and DMC. We believe that this reflects available sources of fuel
blending stocks. PADD II marine fuels more closely resemble No. 2-D off-highway fuel than any other
PAD district. PADD II also has considerably less refining industry than PADD I, III and V. As
mentioned above, the higher sulfur marine fuels are specially manufactured in refineries or blended in
marine fuel terminals only for larger contracts. In general, the larger supply of distillate fuels (No. 2
fuels) are rebranded for marine use.

In terms of historical sulfur content trends, the NIPER 1998 Diesel Fuel Oils study shows that off-
highway No. 2-D fuel sulfur levels have remained fairly constant for the past fifteen years. The DNV
Fuel Quality Statistics for Marine Distillates is a first-time report, so we have no  historical perspective
on these marine fuels.

Regarding seasonal variations, NIPER data shows special summer and winter fuels;  however, there are
too few winter samples to draw any conclusions.

VII. Fuel Usage

               A. Approach:

The available data sources for diesel fuel use come primarily from the Department of Energy, Energy
Information Administration1.  Annual reports are available in hard copy and on the Internet. We also
found a survey of recreational boat and fuel use conducted by Price Waterhouse in 1991 for the U.S. Fish
and Wildlife Service and U.S. Coast Guard 4. All other sources of information about marine fuel use are
anecdotal, from fuel manufacturing&marketing 13> 20, testing14, brokering12 and supply people15'16> 17> 18> 19,
nationwide.

B. Results:

                       1. Use of Vessel Bunkering and Recreational Marine  Fuels

For a general picture of marine fuel usage, Table 6 shows five years of data from EIA "Consumption
Estimates, State Energy Data Report."1 on vessel bunkering fuel use. The  most recent data available is
the year 1997. The fuel categories reported are "distillate fuel oils" and "residual fuel oils."  Distillates
would cover DMA, DMB, DMC and any other distillate fuels used in the fueling of commercial (marine
shipping) and private boats, such as, pleasure craft, fishing boats, tugboats, and ocean-going vessels
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(excluding the Armed Forces). The "residual fuel oil" category includes both intermediate (IFO) and
residual fuels. There is no breakdown of intermediate and residual fuel use.
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                                                   TABLE 5
                                           REGIONAL VARIATIONS
                                                  1997 DATA*

PADDI
PADD II
PADD III
PADDV
US
SULFUR
DM DMB DM No2 No2
A C ON OFF
0.39 0.68 0.90 0.036 0.231
0.31 0.38 0.39 0.036 0.249
0.36 0.93 1.02 0.035 0.430
0.36 1.19 1.18 0.031
0.36 0.91 1.04 0.035 0.293
VISCOSITY
DM DMB DM No2 No2
A C ON OFF
3.1 3.7 5.3 2.75 2.60
2.6 2.9 3.0 2.66 2.82
3.2 4.2 5.2 2.92 2.88
3.7 7.1 7.6 2.58
3.2 4.5 6.0 2.70 2.79
ASH
DMA DMB DMC No2 No2
ON OFF
0.00 0.00 0.01 0.001 0.001
0.00 0.00 0.00 0.003 0.005
0.00 0.00 0.01 0.003 0.003
0.01 0.01 0.01 0.001
0.00 0.00 0.01 0.001 0.002
Data for DMA, DMB, DMC provided by DNV Petroleum Services. Data for No2 on and off highway provided by NIPER.
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                                            TABLE 6
             RELATIVE PRODUCTION SUPPLY OF VESSEL BUNKERING FUELS
                               FOR DOMESTIC CONSUMPTION*
                                    (THOUSAND GALLONS)

Marine Distillate Fuel Oil
Marine Residual Fuel Oil
Total Marine Fuel
Distillate % of Total Marine
1993
2,043,745
6,269,882
8,313,627
24.6
1994
2,026,899
5,944,838
7,971,737
25.4
1995
1,978,105
6,431,238
8,409,343
23.5
1996
2,177,608
5,804,977
7,982,585
27.3
1997
2,107,561
4,789,861
6,897,422
30.6
 Consumption estimates, State Energy Data Report, DOE's Energy Information Administrator.
Marine distillate fuel sales have remained roughly constant over the five year 1993 to 1997. Residual fuel
oil sales have generally declined over this period, so the proportion of marine distillate to residual fuel sales
has increased from about 25% in 1993 to over 30% in 1997. Marine distillate fuel sales have remained about
the same from 1993-1997.

Diesel fuel use for recreational boating was estimated in a National Recreational Boating Survey (1992)4 to
be approximately 65 million gallons per year in the U.S.  Recreational diesel fuel use is also provided state
by state.

                      2. Fuel Use Regional Variations

Table 7 shows a regional breakdown  of marine fuel sales from the 1997 EIA data1. Distillate fuel oil
sales data includes fuel used for pleasure crafts.  The Price Waterhouse survey in 19914 provided a diesel
fuel use by state, which can be grouped by PAD Districts for comparison with the EIA data. While the
years of the two data sources is different, marine distillate fuel sales have remained fairly constant since
1991 (as shown in Table 6), so the comparison is reasonably valid.

While marine distillate fuel sales are  strong in all PAD Districts with the exception of the Rocky
Mountains (PADD IV), residual fuels are apparently not used to a large extent on the Great Lakes
(PADD II). Note that the  proportion  of distillate to residual fuel sales is very different on the West Coast
(PADD V) relative to the  East Coast  (PADD I) and Gulf Coast (PADD III). Whether these fuel sales
differences on the East, West and Gulf Coasts are representative of actual fuel use in these three areas is
not known. It is not uncommon for large ocean-going cargo vessels to "round-trip" bunker at the port
supplying the lowest cost  fuel. Therefore, the apparent decline in U.S. sales of residual bunker fuels may
reflect an actual decline in use or a shift of supply from U.S. ports to foreign ports. Distillate fuels, on
the other hand, are largely used in the same PAD District as supplied.

Recreational distillate fuel sales are predominantly on the East Coast (PADD I).  Nearly 65% of
recreational diesel fuel use is in PADD I, about 21% on PADD V, West Coast, and only 6 to 7% used in
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  Central U.S. (PADD II) and Gulf Coast (PADD III). There is no significant distillate fuel use in the
  Rocky Mountain States (PADD IV).

  Note that total U.S. marine distillate fuel sales are only 6% of the total transportation distillate fuel sales,
  while vessel bunkering is the only transportation use of residual fuels. Recreational diesel fuel use is less
  than 0.2% of total transportation distillate fuels.

  Finally, we have found no readily available data sources complete enough to show seasonal trends in
  marine fuel use.
                                          TABLE 7
           REGIONAL VARIATIONS IN MARINE FUEL PRODUCT SUPPLIED
                            FOR DOMESTIC CONSUMPTION
                            (THOUSAND GALLONS PER DAY)

PADD I
PADD II
PADD III
PADD IV
PADD V
USA
Distillate Fuel Oil1
(1997)
1,378
1,263
2,259
<1
873
5,774
Residual Fuel Oil1
(1997)
3,665
68
5,014
0
4,376
13,123
Recreational Diesel
Use2 (1991)
115
13
11
<1
38
178
Percent of Distillate
over Distillate and
Residual
27%
95%
31%
-
17%
31%
Note 1. EIA "Fuel Oil and Kerosene Sales 1997"
Note 2. Price Waterhouse "National Recreation Boating Survey," June 30, 1992
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                                             Appendix 1
                    Estimate of Land Based Fuel Rebranded for Diesel Marine Fuel Use

ICF contacted representatives from major oil companies (e.g., Texaco, Chevron) and requested a ballpark
estimate of how much of the marine distillate fuel (e.g., DMA) was refined and blended originally from a land
based fuel or alternatively what percent of the land-based distillate fuel ends-up being used for marine distillate
(e.g., DMA).  In general, the contacts agreed with our assessment that a large portion of both commercial and
recreational  marine distillate fuels are rebranded land-based distillate fuels. For example, DMA is supplied as
rebranded No. 2 on- and off-highway fuel, and in the north and north-eastern states, DMA may be rebranded
No. 2 home heating fuel.  ICF's original estimate was that as much as  90% of the DMA and DMB was
manufactured originally as a land-based fuel, primarily as No. 2D high sulfur (off-highway) and rebranded for
marine use.  This estimate is based on the few refineries close enough to major marine ports to enter special
supply agreements, the large volume of land based distillate fuel versus marine fuel, and the close comparison
of marine distillate fuel properties with land based fuel properties (NIPER). Also, ICF estimated that 0.5% of
the No. 2D fuel in the land-based market is used as distillate components in marine diesel fuel (blend of
residual fuel oil and distillate fuel). The Texaco representative commented that the percentage of land based
No. 2 diesel  (0.5%) sold into the marine diesel oil market is maybe too high. Many refiners produce a
distallate type product that cannot be sold as No. 2D for a variety of reasons (API gravity, color), but can be
rebranded into DMA.
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DATA SOURCES

1.  Energy Information Administration Form EIA-821 "Annual Fuel Oil and Kerosene Sales Report," for
      1997.
      •    On-Highway Diesel data are Federal Highway Administration statistics of highway special fuel use.

          EIA's "Petroleum Supply Annual," Volume 1, 1997, (DOE/EIA-0340(97)/1).

2.  DEF NORSKE VERITAS "Fuel Quantity Standards for Marine Distillates'" September, 1997,
      Volume 1 Number 3, DNV Petroleum Services.

3.  "Diesel Fuel Oils, 1998," National Institute of Petroleum and Energy Research, BDM
      Technologies, NIPER-207 PPS-98/5, October 1998.

4.  "National Recreational Boating Survey: Final Report- Volume 2 of 2," Prepared for: U.S. Fish and
      Wildlife Services and the United States Coast Guard, June 30, 1992, Prepared by: Price Waterhouse.

5.  PLATT'S "Guide to Petroleum Specifications," Updated August 1996, Standard & Poor's, A
      Division  of McGraw-Hill Companies.

6.  American Society for Testing and Materials" "Standard Specification for Marine Fuels,"
      D 2069-91; "Standard Specification for Fuel Oils," D 396-97; "Standard Specification for Diesel Fuel
      Oils," D 975-97.

7.  International Council on Combustion Engines (CIMAC), " Recommendations Regarding Fuel
      Requirements for Diesel Engines,"  Third Edition,  15 May 1990.

8.  International Organization for Standardisation (ISO)  8217: 1987, BSMA 100: 1989, "Requirements for
      marine distillate fuels"; "Requirements for marine residual fuels."

9.  Sterling Marine Fuels, A Division of McAsphalt Industries Limited, " No.2 Diesel Fuel
      Specification."

10. Mobil Marine Distillate Fuels, Light  Marine Fuel Oil, Marine Fuel Oil, #1 Diesel Fuel (LS), #2 Diesel
      Fuel (LS), #2 Diesel Fuel (HS) Product Data sheets;
      http://www.mobil.com/business/marine/fuels.html

11. Diesel Fuel Technical Review (FTR-2) Copyright 1998 Chevron Products Company, a division of
      Chevron  U.S.A. Inc.

12. Telecon: Robert Aiken, Glander International, Inc. Plam Beach Gardens, FL (561) 625-5500.

13. Telecon: John D. Bacha, Consulting  Scientist, Fuels Technology, Chevron Products  Company,
      Richmond, CA (510)242-2126.

14. Telecon: Rudolph Kassinger, DNV Petroleum Services, Teanech, NJ, (201) 833-1990.
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15. Telecon: Bob Williams, Manager, BP-Coastal, Port Newark, NJ, (973) 465-2427.

16. Lynn Gates, Fuel Services for Corpus Christi, TX, (512) 881-9977.

17. Telecon: Les Shook, Southwest Services, Corpus Christi, TX, (512) 887-9898.

18. Telecon: George Smith, Manager, City of Elizabeth Municipal Marina, Elizabeth, NJ, (908)  820-
     4296.

19. Telecon: Chris Kaplan, City Yachts, San Francisco, CA, (415) 567-8880.

20. Email: Fred J. Hillis, Manager/Technical Advisor- Fuels, Mobil Marine Sales and Services, Fairfax,
     VA, fredj_hills@email.mobil.com.

21. Marine Engineering, Written by a Group of Authorities, Third Edition, 1980, Society of Naval
     Architects and Marine Engineers.

22. Lubricants and Fuels in Ships, Chapter 14 Marine Fuels: Specifications (EPA provided).
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