Corporate Site - Barrel Adjustment

BARREL ADJUSTMENT

S&W% and Price Adjustment

One of the tangible benefits of having Pacer COM as the first purchaser of your oil is the fact that we are able to buy your oil regardless of S&W content, thereby, removing the burden of treating unmerchantable oil from the producer. Due to the rising cost of hazardous waste disposal, effective February 1, 2006, the below table will be utilized to determine the S&W price deduction for all purchased oil:

S&W PRICE DEDUCTION
S&W%	PRICE ADJUSTMENT	S&W%	PRICE ADJUSTMENT
0 - 1	None*	25.0 - 25.9	$25.00
1.1 - 1.9	75 cents	26.0 - 26.9	$26.00
2.0 - 2.9	$1.50	27.0 - 27.9	$27.00
3.0 - 3.9	$2.25	28.0 - 28.9	$28.00
4.0 - 4.9	$3.00	29.0 - 29.9	$29.00
5.0 - 5.9	$3.75	30.0 - 30.9	$30.00
6.0 - 6.9	$4.50	31.0 - 31.9	$31.00
7.0 - 7.9	$5.25	32.0 - 32.9	$32.00
8.0 - 8.9	$6.00	33.0 - 33.9	$33.00
9.0 - 9.9	$6.75	34.0 - 34.9	$34.00
10.0 - 10.9	$10.00	35.0 - 35.9	$35.00
11.0 - 11.9	$11.00	36.0 - 36.9	$36.00
12.0 - 12.9	$12.00	37.0 - 37.9	$37.00
13.0 - 13.9	$13.00	38.0 - 38.9	$38.00
14.0 - 14.9	$14.00	39.0 - 39.9	$39.00
15.0 - 15.9	$15.00	40.0 - 40.9	$40.00
16.0 - 16.9	$16.00	41.0 - 41.9	$41.00
17.0 - 17.9	$17.00	42.0 - 42.9	$42.00
18.0 - 18.9	$18.00	43.0 - 43.9	$43.00
19.0 - 19.9	$19.00	44.0 - 44.9	$44.00
20.0 - 20.9	$20.00	45.0 - 45.9	$45.00
21.0 - 21.9	$21.00	46.0 - 46.9	$46.00
22.0 - 22.9	$22.00	47.0 - 47.9	$47.00
23.0 - 23.9	$23.00	48.0 - 48.9	$48.00
24.0 - 24.9	$24.00	49.0 - 49.9	$49.00

*Merchantable Oil

Please note that Pacer Energy Marketing, LLC policy is that if we are picking up your oil in the field, and your S&W is higher than 40%, Pacer Energy Marketing, LLC will not pay you for that load. For any additional information please contact us at pacerinfo@pacerem.com.