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Quality Bank Information

The purpose of Poseidon’s Market Based Quality Bank is to mitigate to the fullest extent possible, value differences between the quality of each producer’s oil and the resultant Poseidon common stream.  Unlike most of the quality banks in the Gulf of Mexico that use fixed adjustment factors, Poseidon uses variable adjustment factors for gravity and for sulfur that track the current market value difference between sweet and sour crudes.  Poseidon adjusts these factors every month using the value and quality difference between Poseidon crude and a commonly traded marker crude Louisiana Light Sweet.  In this way Poseidon, on a monthly basis, compensates the producer for the market value difference between crudes.
 

Prior year and CURRENT MONTH Gravity and Sulfur adjustment factors at Houma.

MARCH 2005 factors reflect new gravity and sulfur weighting factors as provided by a vote of the Producers on Poseidon. The effect was to lower the adjustment factors.  

MONTH JAN 10 FEB 09 MAR 09 APR 09 MAY09 JUN 09 6 Mo. Ave
GRAVITY degrees API 30.45 32.84 30.35 29.88 30.35 29.94 30.59
SULFUR % 1.72 1.43 1.86 1.71 1.75 1.73 1.71
Gravity adjustment factor  $0.25 $0.46 $0.15 $0.20 $0.24 $0.17 $0.25
Sulfur adjustment factor $0.98 $1.70 $.60 $0.88 $1.14 $.79 $1.00
MONTH JUL 09 AUG 09 SEP 09 OCT 09  NOV 09 DEC 10 12 Mo. Ave
GRAVITY degrees API 30.57 31.27 30.97 29.76 30.65 30.41 30.62
SULFUR % 1.73 1.69 1.73 1.75 1.69 1.69 1.71
Gravity adjustment factor  $0.24 $0.28 $0.26 $0.22 $0.25 $0.21 $0.25
Sulfur adjustment factor; $0.93 $0.99 $0.95 $0.99 $1.11 $0.98 $1.07

HISTORICAL FACTORS

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