EFTA01771038.pdf

From: Erika Kellerhals Sent: Thursday, January 19, 2012 8:35 PM To: Jeffrey Epstein Subject: Hovensa press release HOVENSA Announces Closure of St. Croix=Refinery Company t= Work Closely with the U.S. Virgin Islands Government to Ease Transition</=m> ST. CROIX, U.S. Virgin Islands J=n. 18, 2012 - HOVENSA L.L.C. announced today that it will commence shutd=wn of its refinery on St. Croix, U.S. Virgin Islands. Following the shutdo=n, the complex will operate as an oil storage terminal. Losses at the HOVENSA refinery have totaled $1.3=billion in the past three years alone and were projected to continue. Thes= losses have been caused primarily by weakness in demand for refined petro=eum products due to the global economic slowdown and the addition of new r=fining capacity in emerging markets. In the past three years, these factor= have caused the closure of approximately 18 refineries in the United Stat=s and Europe with capacity totaling more than 2 million barrels of oil per=day. In addition, the low price of natural gas in the United States has pu= HOVENSA, an oil•fueled refinery, at a competitive disadvantage. "We deeply regret the closure of the HOVENSA r=finery and the impact on our dedicated people," said Brian K. Lever, Pre=ident and Chief Operating Officer of HOVENSA. "We explored all available=options to avoid this outcome, but severe financial losses left us with no=other choice. We will provide significantly enhanced benefits for those un=on and salaried employees who are impacted and will work closely with the =overnment of the U.S. Virgin Islands to ease the transition for the rest o= the community." After formal shutdown of the refinery, which wil= occur by the middle of February, most of those employed at HOVENSA will c=ntinue working through a transition period. Thereafter, approximately 100 =eople will remain to work at the oil storage terminal. ER=KA A. KELLERHALS </=pan> <=p> Kellerhals Ferguson LLP A Full Service Law Firm EFTA_R1_00082379 EFTA01771038 Notice: =his communication may contain privileged or other confidential information= If you are not the intended recipient, or believe that you have receiv=d this communication in error, please do not print, copy, re-transmit, dis=eminate, or otherwise use this information. Also, please indicate to th= sender that you have received this e-mail in error, and delete the copy y=u received. Thank you. <=p> Circular 230: To ensure compliance with the requir=ments imposed by the IRS, we inform you that any tax advice contained in o=r communication (including any attachments) was not intended or written to=be used, and cannot be used, for the purpose of (i) avoiding any tax penal=y or (ii) promoting, marketing or recommending to another party any transa=tion or matter addressed herein. 2 EFTA_R1_00082380 EFTA01771039