LBC Tank Terminals

LBC Houston – Post hurricane Harvey update

7 September 2017

We are sure that at this point in time you have all been following the catastrophic damage and devastation to the greater Houston area. Therefore, we would like to provide an update regarding the current status of the LBC Houston Terminal located in Seabrook, Texas.

First of all, we are extremely happy and blessed to report that all of our employees are safe and accounted for. Our employees are, and will always be our most important asset. Several of our employees were directly impacted by this storm, and most of our US colleagues were indirectly impacted in terms of family, and friends that lost their homes and, or vehicles. We anticipate normal staffing to improve this week and currently are operating with approximately 90% of allocated headcount.

LBC Houston has set up a disaster recovery fund to enable us to assist our employees that have lost their homes and vehicles either temporarily, or permanently. Our priority is focused on getting our people out of shelters first, then out of hotel rooms second, and placing them into suitable longer term living environments. In addition, we are also providing assistance for temporary transportation.

Secondly, we are happy to report that the Terminal sustained minor damages during the storm. We calculated receipt of 153 million gallons of rainfall at the Terminal and also received significant additional inland flood water from overflows of adjacent tributaries and bayous. LBC employees followed our Hurricane Plan and the employees assigned to manage the storm water did a remarkable job in keeping the Terminal from undergoing serious flooding within dike walls and operating areas. Several portable pumps as well as electric pumps were utilized. We did experience power interruption twice, once during the storm, and once this past Saturday. The cause of the outage was external on the utility provider distribution system. As a result, we did not experience any loss or degradation of Customer Product during the storm. Likewise, I am happy to report there were no environmental spills or releases to report to State or Federal agencies.

Furthermore, a complete facility assessment and integrity inspection of the tank assets and infrastructure, including taking new dock soundings, was completed on Thursday and Friday of last week. LBC received formal approval from the United States Coast Guard to resume operations and once the Port opened up we commenced marine traffic movements on Friday, September 1, being one of the first terminals in the Port of Houston to resume marine operations. In addition truck, rail, and pipeline operations also commenced.

As you can imagine, the business activity that was on hold during the storm, plus the scheduled activity for the weeks after, have put us into a tight and compressed schedule with a very high workload demand. Please know we will work with each of our Customers to fulfill their needs in order to support plant restarts, and likewise to avoid plant shutdowns. We ask for patience during this difficult period and for prayer for our affected employees as we move forward with recovery efforts.