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1 CONTACT INFORMATION A LOOK AT KOCH INDUSTRIES, INC.

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Page 1: A LOOK AT KOCH INDUSTRIES, INC. - Koch Creative · PDF fileA LOOK AT KOCH INDUSTRIES, INC. 3 ... Initiative ®, a program that ... carpet for residential use. These high-quality products

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CONTACT INFORMATION

A LOOK AT KOCH INDUSTRIES, INC.

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The information contained herein has been prepared by Koch Industries, Inc. solely for use by its employees or its affiliates’ employees. Dissemination or reproduction by any means of the information and/or concepts contained herein to other parties is prohibited without the written permission of Koch Industries, Inc. This publication is protected by copyright. All rights are reserved.

The trademarks contained herein are the property of Koch Industries, Inc. or its affiliates and are protected by United States and, where applicable, foreign laws. Any unauthorized use of such trademarks without the express written permission of their owner is a violation of law.

kochind.com

INVISTA.com

fhr.com

gp.com

kochpipeline.comKOCH PIPELINE COMPANY, L.P.

© 2011 Koch Industries, Inc. 3

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The best way to understand Koch Industries, Inc. is to view it as a collection of capabilities continually searching for new ways to create value. Its predecessor firm began in 1940 as a small oil refining company in Illinois.

Today, the privately owned company is one of the largest in America, according to Forbes magazine. Based in Wichita, Kansas, Koch Industries owns a diverse group of companies involved in refining and chemicals; process and pollution control equipment and technologies; minerals and fertilizers; polymers and fibers; commodity trading and services; forest and consumer products, and ranching. Koch companies have a presence in nearly 60 countries and employ about 67,000 people.

About Koch CompaniesIn addition to growing in its core segments, Koch Industries has expanded its vision to include equity investments in other areas. Koch Industries invests not only capital, but also entrepreneurial talents and business acumen into a variety of firms for which Koch Industries’ capabilities can create value.

Koch companies are long-time traders of a wide range of commodities. They apply a disciplined, strategic trading approach, which helps them anticipate market developments in many industries. This approach has led to growth in their trading and risk management businesses and expansion into other areas.

KOCH INDUSTRIES AT A GLANCE

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KOCH INDUSTRIES

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Koch companies strive to be world-class, cost-efficient operators of their many facilities. They have earned recognition for superior performance in environmental protection, health and safety.

Each Koch company strives to bring the power of the free market inside its business to maximize productivity and adaptability. Through Market-Based Management®, Koch companies are encouraged to create value by producing innovations that improve people’s lives and contribute to prosperity in society. Value creation requires providing products and services that customers value more highly while consuming fewer resources. This leaves more resources available to satisfy other needs in society.

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TRANSFORMING DAILY LIFE ™

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The transformation of timber into paper towels and other useful products has developed Georgia-Pacific brands such as Brawny®, Quilted Northern® and Dixie® into household names. Georgia-Pacific participates in the Sustainable Forestry Initiative®, a program that integrates the growing and harvesting of trees with protection of wildlife, plants, soil, air and water.

This valve and jet engine represent Flint Hills Resources’ refined products pipeline system that carries jet fuel from Corpus Christi, Texas, to Dallas-Fort Worth International Airport. Jet fuel is also produced at Flint Hills Resources refineries in Minnesota and Alaska. Koch companies have been in the petroleum business for more than six decades, and currently operate refineries with a combined crude oil processing capacity of nearly 900,000 barrels per day.

Through its Performance Surfaces and Materials business, INVISTA is the global market leader in carpet fiber, with ANTRON® nylon fiber for commercial carpets, and STAINMASTER® carpet for residential use. These high-quality products offer not only fashion and style for homes and public spaces, but also proven performance – resisting soil and stains and lasting up to 50 percent longer than other carpets.

Transforming Daily Life™

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So many of our daily activities are made possible by a vast underground network of steel pipelines that quietly deliver the fuels we need to drive our cars and heat our homes, as well as raw materials for making items as diverse as medicines and food containers.

Koch Pipeline Company, L.P.; based in Wichita, Kan.; owns or operates crude oil, refined petroleum products, chemicals and natural gas liquids pipelines in Texas, Iowa, Illinois, Minnesota, Missouri and Wisconsin. Koch Pipeline Company is part of the behind-the-scenes, yet vital, action that keeps this network humming around the clock and keeps consumers supplied with the modern conveniences that make our lives easier.

Pursuing Excellence in the Community In some areas, all neighbors see of a Koch Pipeline-owned or -operated pipeline is a cleared area and markers along the pipeline’s path. Where there are facilities like pump stations and terminals, Koch Pipeline Company may be a more visible part of the community. But in each community we touch, and with each of the pipeline systems we operate, we strive for excellence - in regulatory compliance, environmental stewardship and safety. Our operating practices and safety and environmental achievements earn praise and commendations from industry and governmental organizations.

A key component of this safety commitment is our ongoing public awareness program, which delivers pipeline education and public safety communications to our pipeline neighbors.

History

Improving on a Tradition Koch Pipeline Company, L.P. an independent subsidiary of Koch Industries, Inc., builds from more than seven decades of Koch company involvement in owning and operating pipelines.

In 1946, as part of the purchase of Rock Island Oil and Refining Co., Wood River Oil Co. (a pre-cursor company to Koch Industries) acquired a small crude oil pipeline in southwestern

A LOOK AT KOCH PIPELINE COMPANY, L.P.

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Oklahoma. The Wood River Oil Co. also constructed a new pipeline to supply product to its St. Louis refinery. In the late ‘50s, other investments brought pipelines in the Northern Midwest and Canada under the company’s operation.

In the ensuing years, the company bought, sold and built pipeline systems transporting crude oil and refined products, as well as natural gas, natural gas liquids and anhydrous ammonia (for fertilizer). Today, Koch Pipeline and its affiliates keep a 4,000-mile network of pipelines running efficiently and safely, supplying modern conveniences necessary for everyday life.

Our OperationsMinnCan Project The Minnesota Pipe Line Company completed an expansion of the Minnesota Pipe Line System in the fall of 2008. The 304-mile new pipeline will deliver additional supplies of crude oil to refineries in the Twin Cities.

Refined Products The pipeline systems we operate transport refined products to terminals, either reaching airline and other major customers directly or delivering to wholesale distributors who get the fuels to consumers. These pipelines are owned by Flint Hills Resources, LP.

– Wisconsin Pipeline carries products from the Flint Hills Resources’ Twin Cities- area refinery to distribution terminals in Wisconsin.

– MSP Airport Line delivers jet fuel to the Minneapolis/St. Paul airport.

– Texas Pipeline System runs from Corpus Christi to the San Antonio, Austin, Bastrop, Waco and Dallas/Ft. Worth markets.

– DFW Airport Line – Delivers jet fuel from a Ft. Worth-area terminal to the Dallas/Ft.Worth airport.

Natural Gas LiquidsWe operate a propane distribution pipeline in Minnesota and Wisconsin, which takes this important home heating fuel to a key market in Wisconsin.

ChemicalsWe operate pipelines in Texas that serve chemical plants owned by Flint Hills Resources. The lines are owned by Flint Hills.

KOCH PIPELINE COMPANY L.P.

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Other ProductsWe also operate an 8-mile, 21-line pipeline system that connects the east and west plants of the Flint Hills Resources refining complex in Corpus Christi. This system carries a variety of products between the two facilities.

Our Integrity Management Program The first priority of our business is safety – the safety of our neighbors, employees and the environment. Our programs are designed to help us operate safely. Our Pipeline Integrity Management Program helps ensure the mechanical integrity of our pipelines.

Our ProgramsOur employee training and qualification programs help ensure our employees have the knowledge they need to do their jobs safely and in a way that maintains the integrity of our systems. Our emergency response plans describe our planned responses in the event of a pipeline emergency and provide KPL emergency contact information. We share these plans with government response agencies near our pipelines.

Our Public Awareness program includes delivering pipeline education and public safety information to our neighbors. Brochures mailed annually describe how to prevent pipeline damage and how to recognize, report and respond to accidents if they occur.

Our compliance assurance programs help us ensure that we are in full compliance with all applicable regulations as well as our own internal guidelines and procedures.

Safety and Environmental CommitmentKoch Pipeline knows that to continue its success it must

meet the expectations of neighbors and government regulators, as well as its own leaders and employees. To create superior value for our customers, owners, and communities, Koch Pipeline must continue to be a leader in operating safely, in a manner that protects the environment, and in compliance with the law. We also believe that our commitment to being a good operator

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includes taking an active role in our communities by supporting organizations that work to enhance education, the environment and human services.

As evidence of its commitment to continuous improvement, Koch Pipeline has earned some of the highest honors from local, state and national organizations for its safety and environmental performance. Koch Pipeline’s workforce has set a company safety record of 6 million work-hours without a lost-time incident.

Koch Pipeline employees in Texas have achieved Voluntary Protection Program STAR status from the Occupational Safety and Health Administration. It is only the fourth pipeline operating group in the U.S. to earn that prestigious designation.

The pipeline control center in Wichita is a key element of achieving both safe and efficient operations. The center’s high-tech systems and vigilant operators handle remote pipeline control, monitoring and information sharing around-the-clock.

Affiliated CompaniesKoch Pipeline Company, L.P. is an indirect, wholly owned subsidiary of Koch Industries, Inc. Many of the pipelines and terminal facilities we operate are owned by Flint Hills Resources, LP, also a Koch Industries subsidiary.

Other companies affiliated with Koch Industries have pipeline operations or investments not under the purview of Koch Pipeline Company. For example, another Koch company owns a 28 percent interest in Colonial Pipeline Company, owner of the world’s largest-volume refined products pipeline.

Our InvestmentsKoch Alaska Pipeline Company, a subsidiary of KPL, owns a 3.08 percent interest in the Trans Alaska Pipeline System. The 800-mile common-carrier pipeline transports crude oil from the North Slopes of Alaska and Prudhoe Bay to Alaskan refineries and the port of Valdez, the northernmost ice-free port in the United States.

The Trans Alaska Pipeline System is operated by the Alyeska Pipeline Service Company, which was established in 1970 to design, construct, operate and maintain the Trans Alaska Pipeline System. Construction began in 1975, was completed in 1977 and crude oil began flowing in June, 1977. The 48-inch diameter steel pipeline crosses three mountain ranges and more than 800 rivers and streams.

KOCH PIPELINE COMPANY L.P.

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Refining and ChemicalsFlint Hills Resources LLC, through its subsidiaries, operates refineries in Alaska (North Pole), Minnesota (Rosemount) and Texas (Corpus Christi), with a combined crude oil processing capacity of more than 800,000 barrels per day. The petrochemical business includes production facilities in Illinois, Michigan and Texas. These plants produce aromatics, olefins, polymers and intermediate chemicals. In addition, various other subsidiaries operate ethanol plants in Iowa, produce and market

asphalt in the Midwest, and own an interest in a base oil facility in Louisiana.

A Koch Supply & Trading company operates an 80,000 barrel-per-day refinery in Rotterdam, the Netherlands.

Process and Pollution Control Equipment and Technologies

Koch Chemical Technology Group, LLC and its affiliates design, manufacture, sell, install and service process and pollution control equipment, and provide engineering services for industries and municipalities worldwide. Affiliates include:

Koch-Glitsch, LP is a global leader in the design, manufacture and installation of mass transfer and mist elimination equipment. The company’s products are found in refineries and chemical plants worldwide.

Koch Membrane Systems, Inc. develops and manufactures membrane separation systems for a variety of applications worldwide, including membranes for microfiltration, ultrafiltration, nanofiltration and reverse osmosis. The company also provides submerged membranes used in industrial and municipal wastewater treatment.

Koch Heat Transfer Company, LP designs and fabricates proprietary and custom heat exchangers for a global customer base.

OTHER KOCH COMPANIES ARE INVOLVED IN THESE DIVERSE INDUSTRIES:

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John Zink Company, LLC is a global leader in ultra-low emission process burners, boiler burners, duct burners, flares and thermal oxidizers. The company is also a global supplier of flare gas/vapor recovery and vapor combustor systems.

Optimized Process Designs, Inc. provides consulting, engineering, design, procurement, fabrication and construction services for the natural gas and gas processing industries worldwide. OPD has been the general contractor on some of the largest natural gas plants built in the U.S.

Koch Knight LLC is a leader in acid proof solutions. The company offers construction, engineering and services through a global network of manufacturing and outsourcing facilities. Its products, made from state-of-the-art ceramics and plastic materials, are available worldwide.

MineralsKoch Minerals, LLC and its subsidiaries are among the world’s largest dry-bulk commodity handlers, marketing and trading more than 40 million tons of product annually. Subsidiaries include:

Koch Carbon, LLC globally trades and transports petroleum coke, coal, cement, pulp and paper, sulfur and other related commodities through a network of bulk import/export terminals in the United States and Europe.

The C. Reiss Coal Company is a leading supplier of coal and related products typically used in industrial applications or to generate electricity.

Koch Exploration Company, LLC acquires, develops and trades petroleum and natural gas properties in the United States and Canada.

INDUSTRY AREAS

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FertilizersKoch Fertilizer, LLC and its affiliates own or have interests in nitrogen fertilizer plants in the United States, Canada, and Trinidad and Tobago. The companies cover global demand through state-of-the-art terminals in the U.S., Canada, Mexico, Australia, France and the United Kingdom. Koch Fertilizer, LLC and its affiliates, including Koch Nitrogen Company, LLC and Koch Fertilizer Canada ULC, have the capability to manufacture, market and distribute more than 13 million tons of fertilizer products annually.

Commodity Trading and Services Koch companies have traders or originators in Wichita, Houston, New York, Mumbai, Rotterdam, Singapore, Geneva, London, Paris and Calgary.

Koch Supply & Trading companies around the world trade and provide risk management services in crude oil; refined petroleum products; natural gas and gas liquids; gas, power and emissions; industrial metals; and other commodities.

Polymers and FibersINVISTA B.V., and its subsidiaries are among the world’s largest integrated producers of polymers and fibers, primarily for nylon, spandex and polyester applications. INVISTA has facilities in more than 20 countries across the globe and operates four major businesses: Apparel, Intermediates, Performance Surfaces & Materials, and Polymer & Resins, as well as a technology licensing segment.

INVISTA is behind many items that enrich people’s lives every day; clothing, carpets, luggage, plastic bottles, automobile interiors, airbags and many other products originate in one of INVISTA’s global manufacturing facilities. Built on a heritage of innovation, INVISTA

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owns more than 1,000 unique pending or granted U.S. patents, with corresponding patents in nearly all of the countries where INVISTA has a business presence. INVISTA delivers exceptional value for its customers through technology innovations, market insights and a powerful portfolio of global trademarks including LYCRA® fiber, STAINMASTER® carpet, ANTRON® carpet fiber, COOLMAX® fabric and others.

Forest and Consumer Products Georgia-Pacific LLC, based in Atlanta, and its subsidiaries have nearly 300

manufacturing facilities across North America, South America and Europe, ranging from large pulp, paper and tissue operations to gypsum plants, box plants and building products operations.

North American consumer brands include Quilted Northern®, Angel Soft®, Brawny®, Vanity Fair® and Dixie® cups and tabletop products. European brands include Lotus®, Colhogar®, Delica®, Tenderly® and the Demak’Up® brand of facial cleansing products.

The company also markets paper towel, napkin and soap dispensing systems used in commercial settings. The packaging business is one of the country’s largest suppliers of corrugated containers to consumer product manufacturers. The building products businesses have long been among the nation’s leading suppliers to lumber and building materials dealers and do-it-yourself warehouse retailers.

Ranching The Matador Cattle Company, a division of Koch Agriculture Company, operates three ranches: Beaverhead in Montana, Matador in Texas, and Spring Creek in Kansas. The ranches total about 425,000 acres and support more than 15,000 head of cattle.

INDUSTRY AREAS

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MBM Guiding PrinciplesKoch Industries, Inc. is known for its unique philosophy of Market-Based Management or MBM®. Chairman and CEO, Charles Koch, describes MBM as “the framework that I credit with the enormous success of Koch Industries.”

MBM is rooted in the principles of a free-market economy. It is designed to help employees think and act like principled entrepreneurs in order to discover and deliver superior customer value. Employees of Koch companies live by a set of values and MBM Guiding Principles which includes integrity, humility and respect. Koch companies are also dedicated to adding value in the many communities where they operate, through civic and charitable contributions and employee involvement.

The Five Dimensions of Market-Based Management®

Vision: Determining where and how the organization can create the greatest long-term value.

Virtue and Talents: Helping ensure that people with the right values, skills and capabilities are hired, retained and developed.

Knowledge Processes: Creating, acquiring, sharing and applying relevant knowledge, and measuring and tracking profitability.

Decision Rights: Ensuring the right people are in the right roles with the right authority to make decisions and holding them accountable.

Incentives: Rewarding people according to the value they create for the organization.

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