The Future is Now: UST Technology Trends

The Future is Now: UST Technology Trends NTC 2015 Pre-Conference Workshop September 13, 2015 1:00-3:00 PM

Agenda Session & Speaker Introductions Steve Reuter, P.G., C.P.G., Geologist Manager New Mexico Petroleum Storage Tank Bureau UST Technology: At the Leading Edge Ron Fulenchek, Senior Director Gasoline Environmental Compliance and Remediation, 7-Eleven UST Technology: At the Leading Edge Brent Puzak, Director Environmental Shared Services, Circle K UST Technology Trends Scot Thrash, COO, Titan Cloud Software Amanda Bennett, Director, Titan Cloud Software Session Q&A 2 Copyright 2015, Titan Cloud Software - Confidential

Session Introduction Technology Waves Today s Technology Wave UST Technology Wave At the Leading EDGE of the Wave are Innovative Operators Regulators have a Role to Play Leading EDGE will Give Way to Mass Adoption 3 Copyright 2015, Titan Cloud Software - Confidential

7-Eleven Profile 7-Eleven is the world s largest convenience store chain operating, franchising and licensing more than 56,400 stores in 18 countries, of which nearly 10,500 are in North America. 7-Eleven also is one of the nation's largest independent gasoline retailers, with over 3,000 stores selling fuel Founded in 1927 in Dallas, Texas, 7-Eleven pioneered the convenience store concept during its first years of operation as an ice company when its retail outlets began selling milk, bread and eggs as a convenience to guests. The name 7-Eleven originated in 1946 when the stores were open from 7 a.m. to 11 p.m. Today, offering busy shoppers 24- hour convenience, seven days a week is the cornerstone of 7-Eleven's business. 4 Copyright 2015, Titan Cloud Software - Confidential

7-Eleven Environmental Compliance & Remediation North American Scope Organizational Structure Centralized responsibility for budget, risk mgmt., projects, and personnel Personnel distributed where it makes sense: Regional Managers and Specialists co-located with businesses Centralized analyst team in Dallas Remediation managed with preferred vendors 5 Copyright 2015, Titan Cloud Software - Confidential

7-Eleven UST Technology Usage (8/31/2015) Metric Value # of Current Users 5,300 # of Current Non-Store Users 407 # of Page Views in August 2015 233,261 # of Activities Closed 248,547 # of Regulatory Inspections Logged 9,849 # of Visual Inspections Conducted 125,519 # of Environmental E-files 2,797,932 # of Sensor Tests Captured 24,323,927 # of Tank Tests Captured 11,098,739 # of Line Tests Captured 1,267,835 # 3 rd party test records automatically integrated since Feb 2010 416,359 6 Copyright 2014 Titan Cloud Software - Confidential

UST Technology Platform Cloud App Platform S.E.E.D.S (powered by Titan Cloud) SEEDS replaced over 9 systems and databases IoT/SCADA/ ATG Engine Analytic Services Document Mgmt. Integration Services Apps of Interest Dashboard Site Data / Fuel Asset Management Visual Inspections Inventory Variance Regulator Access ATG Device Management Environmental Apps 7 Copyright 2014, Titan Cloud Software - Confidential

ATG Device Management part of UST Risk Management Why Device Management? ATGs have 200-300 parameters/settings, many of which are crucial to Environmental Compliance Device Configuration Report (SEEDS vs. Gauge) If you don t know exactly what that Vendor/Tech is changing (in real-time) you are at risk. We have seen sensors disappear, alarm levels change, mag probes change, et al.

UST Compliance at Circle K Circle K brand with over 4,700 Corporate stores in US Decentralized operating structure and culture, each region has historically handled compliance as they see fit With Pantry acquisition of approx. 1,500 stores, establishment of Environmental Shared Services organization using leading-edge UST Technology In process of rolling out lead-edge UST Technology to regions 19 Copyright 2015, Titan Cloud Software - Confidential

Circle K UST Technology Usage (8/31/2015) Metric Value # of Current Users 654 # of Current Non-Store Users 357 # of Page Views in August 2015 145,770 # of Activities Closed 183,804 # of Regulatory Inspections Logged 7,528 # of Visual Inspections Conducted 20,552 # of Environmental E-files 496,053 # of Sensor Tests Captured 13,473,736 # of Tank Tests Captured 9,374,885 # of Line Tests Captured 463,602 # 3 rd party test records automatically integrated 504,623 20 Copyright 2014 Titan Cloud Software - Confidential

UST Technology Platform Cloud App Platform EDGE IoT/SCADA/ ATG Engine Analytic Services Document Mgmt. Integration Svcs Apps of Interest Automated Release Detection Alarm Management Activity Management & Root Cause Tracking Test Vendor Integration Environmental Apps 21 Copyright 2014, Titan Cloud Software - Confidential

UST Technology Reduces Release and Reserves Technology Lever # of Releases Equipment Failure - Preventable $xxx Equipment Failure - Unpreventable Leak rate (gallons / hr) Environmental Reserves ($) $xxx Cost / Release ($) $xxx Size of Release (gallons) Clean-up cost / gallon Time until detection (hrs) Spill response /containment 22 Reimbursements ($) $xxx Insurance State Trust Fund Unassailability of claim Policy terms & conditions

Titan Cloud Profile: View Across 100K Tanks Current Users of Titan Cloud: 15,096 Vendor Interfaces: 1,045,444 Files Integrated Facilities: 41,921 Managed On Cloud 10,500+ On Premise Regulatory Inspections: 21,653 Logged & Managed E-Files: 4,048,963 Stored & Managed Underground Storage Tanks: Over 110,000 Monitored ATG & Sensors & Alarms: 9,757,628 Managed 31 Monthly Mobile UST Inspections: 159,491 Performed

UST Technology Trends 1. The Diffusion of Technology 2. IoT & the Birth of a UST Technology Ecosystem 3. Business Process Management (BPM) 4. Big Analytics 5. The Security Imperative 32 Copyright 2015, Titan Cloud Software - Confidential

Trend 1: The Diffusion of Technology Beginning in 1993, UST Program Has Driven Technology Largest Technology Diffusion 1984 1986 1988 1990 1993 1998 2005 2015 National UST Program LUST Trust Fund National UST Regulations First State Approved Program Leak Detection Deadline Upgrade or Replace Deadline Energy Policy Act Revised UST Regulations 33 Copyright 2015, Titan Cloud Software - Confidential

How UST Technology Could/Should Spread Operators Early Adopters to Mainstream As Business Cases are built Reduces releases/reserves Regulators Slower to Adopt Technology but Needed Could be very heaviest users Promotes mass use via shared systems of record 35 Copyright 2015, Titan Cloud Software - Confidential

Regulator Cloud Utility Important dates Management Compliance Activity Tracking Compliance Inspection Reporting Operator Training & Tracking E-Document Management Mobile Inspection Platform Cathodic Protection Tracking Permit & Registration Tracking 36 Copyright 2015, Titan Cloud Software - Confidential

Trend 2: IoT & Birth of UST Ecosystem In 2008, the number of devices connected to the cloud first exceeded the number of people living on the earth By 2020, the number of things connected on the cloud will reach 50 billion Some of the Things at Fuel Locations Devices Data Connections Alerts/Workflow 37 Copyright 2015, Titan Cloud Software - Confidential

BPM: The Set Up Business Process Management is: Systematic approach to make workflow effective and efficient Adaptive to changing environments Activity or set of activities to achieve goal 40 Copyright 2015, Titan Cloud Software - Confidential

BPM: The Execution Dialog Store Support Model Used to remote troubleshoot Collect more information prior to dispatch Escalate emergencies faster Run Workflow Automation Used for expiring dates Alarms Failures Tasks coming due 41 Copyright 2015, Titan Cloud Software - Confidential

BPM: Alarm Use Case 1. Alarm goes off on a Tank Gauge 2. Clerk ignores it or silences it 3. However, in the background a process begins 4. This alarm is a discriminating liquid sensor alarm in the STP Sump 5. A process has been set up to automatically dial back into the gauge 5 minutes later to check the status of the entire system 6. Also, another process is going and looking for the history of this alarm and compiling a detailed history report for the next action. 7. The alarm is still present so automatically, the compliance manager is notified via email or text of this alarm along with all of the history. 8. The compliance manager can choose to evaluate him/her self or at the click of a mouse, create a work order to a vendor to investigate immediately 9. The vendor has a 2 hour response window and arrives on site to check out the situation and make repairs immediately. 10. Also, as part of this process depending on the extent of the repairs, we can go down several different paths, 1) making proper notifications to regulatory agencies about the repair, or 2) document the minor repair and keep a history log for the life of the system. 11. At all times during this process, everyone involved had all of the information at their finger tips from gauge information, notes of the investigation and repairs, to forms required to be completed for the state. 42 Copyright 2015, Titan Cloud Software - Confidential

BPM: Testing Use Case Testing company goes out and performs integrity testing on a system Generates reports that comes in thorough interface Report notes a failed shear valve At the presence of this fail, a process is kicked off to perform a set of tasks and workflow to resolve this failed equipment Only the section of information pertinent to the failure is sent to the compliance manager to evaluate It is decided that a certified vendor should be dispatched to make repair so a work order is automatically sent Once the work order has been completed, the process kicks off again completing the documentation of the root cause and history Any notice that required filing is sent to the proper contact to complete and submit 43 Copyright 2015, Titan Cloud Software - Confidential

Trend 4: Big Data Analytics Use All Available Equipment Use All Available Data Monitor Systems Continuously Yield Higher Definition Views (to the 1000th of a Gallon or greater) Create Cheaper and More Available Tech 44 Copyright 2015, Titan Cloud Software - Confidential

Trend 5: The Security Imperative Security threats in the fuel industry are very real You must manage your devices! Ensure security of your platform and partners 45 Copyright 2015, Titan Cloud Software - Confidential