FUEL OIL SALES

The fuel oil business within Martin comprises 780,000 barrels of storage from Beaumont, Texas to Tampa, Florida and includes the products; No. 2 oil, No. 6 oil, IFO fuel oil and asphalt. Martin incorporates its own fleet of tugs and barges in the distribution of these products as well as its own trucks and trailers. Fifty-eight percent of the storage tanks are company-owned.

In Beaumont, Texas, Martin owns 220,000 barrels of asphalt-capable storage tanks capable of receiving and/or loading product by truck, rail, inland barge or offshore vessel. Mean water depth is 33 feet. Product handled in Beaumont predominantly supplies Martin's marketing efforts east of the Mississippi River.

Martin leases 110,000 barrels of waterborne fuel oil storage in New Orleans, Louisiana. This storage, capable of receiving and/or loading inland and offshore vessels, facilitates the distribution of Beaumont supply for Martin's eastern markets.

Midstream Fuel represents Martin's fuel oil interests in Mobile, Alabama with the marketing of IFO fuels and marine diesel. Storage of 290,000(150,000 asphalt capable) barrels allows Midstream the flexibility to manufacture IFO quality blends for its ship customers both economically and expeditiously. Ample storage also allows both Midstream and Martin the ability to offer various No. 6 oil fuel blends, by truck, to the surrounding industrial market.

Panama City, Florida offers 70,000 barrels of storage strategic to the surrounding industrial demand. All product is supplied by Martin marine equipment to ensure safety and environmental reliability.

In Tampa, Florida, Martin utilizes 80,000 barrels of company-owned storage for the marketing of No. 2 oil to the local market. Primary customers include utilities, tugboats and industrial consumers.