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Colonial To Continue Working for Solutions to Shipping Bio-Diesel

November 21, 2006

ALPHARETTA, Ga. (Nov. 21, 2006) – Colonial Pipeline announced today it will support the development of environmentally friendly, cost-effective fuels by continuing to work for solutions that may someday permit bio-diesel fuels to be shipped on the pipeline.

Earlier this month, Colonial announced that test shipments of bio-diesel, while feasible, had raised concerns of potential contamination to other products in the pipeline, especially jet fuel. Colonial said pipeline shipments of bio-diesel would not occur “at this time.”

“We are committed to delivering fuels safely, efficiently, and at the standards of quality that our customers count on,” said Dwaine Shroyer, Colonial’s Vice President for Strategic Planning and Business Development. “We will continue to work with the renewable fuels industry for solutions that both assure the quality of jet fuel and permit bio-diesel shipments on the same pipeline.”

The bio-diesel tested on Colonial contains compounds which are not allowed to be present in jet fuel. Colonial has two mainlines, one reserved primarily for distillate products such as jet fuel, home heating oil, fuels for the U.S. military and various grades of diesel fuel, including the new ultra-low sulfur diesel. Bio-diesel fuels would have to be carried in that pipeline. Colonial’s other mainline is reserved primarily for gasoline shipments.

The Colonial system consists of more than 5,500 miles of pipeline, connecting Gulf Coast refineries with markets throughout the Southern and Eastern United States. Colonial deliveries average more than 100 million gallons per day.

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