Wholesale Propane Logistics Segment
General
We operate a wholesale propane logistics business in the states of Connecticut, Maine, Massachusetts,
New Hampshire, New York, Ohio, Pennsylvania, Rhode Island, Vermont and Virginia. Our operations serve
the large propane markets in the northeastern, mid-Atlantic, and upper midwestern states.
Due to our multiple propane supply sources, annual and long-term propane supply purchase arrangements,
storage capabilities, and multiple terminal locations for wholesale propane delivery, we are generally able to
provide our retail propane distribution customers with reliable, low cost deliveries and greater volumes of
propane during periods of tight supply such as the winter months. We believe these factors generally result in
our maintaining favorable relationships with our customers and allowing us to remain a supplier to many of the
large retail distributors in the northeastern and mid-Atlantic United States. As a result, we serve as the baseload
provider of propane supply to many of our retail propane distribution customers.
Pipeline deliveries to the northeastern and mid-Atlantic markets in the winter season are generally at
capacity and competing pipeline-dependent terminals can have supply constraints or outages during peak
market conditions. Our system of terminals has excess capacity, which provides us with opportunities to
increase our volumes with minimal additional cost. Additionally, we are actively seeking new terminals through
acquisition or construction to expand our distribution capabilities.
Our Terminals
Our operations include one owned propane marine import terminal with storage capacity of 476 MBbls,
one leased propane marine terminal with storage capacity of 424 MBbls, one propane pipeline terminal with
storage capacity of 56 MBbls, six owned propane rail terminals with aggregate storage capacity of 21 MBbls,
and access to several open access pipeline terminals. We own our rail terminals and lease the land on which the
terminals are situated under long-term leases, except for the York terminal where we own the land. Our leased
17