GROUND BROKEN FOR STATE-OF-THE-ART MARINE TERMINAL

A Joint Venture Between Hollywood Marine, Inc. and Atlas Processing Company

Shreveport, January 25, 1996 -- At a groundbreaking ceremony this morning, officials of the Atlas Processing Compnay, a subsidiary of Pennzoil Products Company, and Hollywood Marine, Inc. predicted the Port of Shreveport-Bossier will become a strong regional economic catalyst. The ceremony marked the beginning of construction of a new $9.4 million state-of-the-art marine terminal, a joint venture between Atlas and Hollywood Marine, on the banks of the Red River.

Tom Hamilton, executive vice president, Pennzoil Company, said the terminal will stimulate the local economy and create opportunities for business growth.

"The terminal will give Atlas direct access to the Red River and enable it to reduce the cost of getting goods in and out of the refinery," Hamilton said. "By reducing our transportation costs, we will be able to compete more effectively and reach new markets, which will benefit not only our bottom line, but the local economy as well.

Berdon Lawrence, president of Hollywood Marine, said his company is excited about opening the Red River to major barge traffic. "We feel that barging will provide many opportunities for the region's economic growth," he stated. "I anticipate that as marine traffic becomes more regular on the river, and industries realize the cost effectiveness of barge transportation, the Port of Shreveport-Bossier will grow dramatically over the next decade."

Both men attributed the terminal project to decades of cooperation between the citizens, parish officials, city and state governments, the Port Commission and the Corps of Engineers. "It took vision, determination, hard work and a positive business climate to make this dream a reality," said Hamilton.

Hollywood Marine is one of the largest tank barge companies in the country and operates several other marine terminals. Lawrence, a Lake Charles, Louisiana, native, said barging of bulk liquid and dry cargoes is both energy efficient and environmentally responsible. "The lock structures on the river allow as many as six 1,500-ton barges to be moved with one push boat," he noted. "It would take 323 trucks or 94 rail cars to move the same amount of freight. He added that barge provide an incremental reduction in transportation cost and provide new options for local industry.

The terminal will be built on a shallowdraft navigation channel 9 feet deep by 200 feet wide on a 2,000-acre site. Four acres will be devoted to riverfront activities. The terminal will have 340,000 barrels of tankage, a four-bay automated truck-loading rack and a two-berth barge dock. It will be capable of storing a variety of petroleum products, chemicals and fertilizers. The terminal will have the ability to receive or deliver products via barge, truck and rail.

Lawrence said the terminal will be operated on a commercial basis and marketed to third parties such as paper mills, fertilizer companies, petrochemical companies, and other petroleum companies, in addition to Atlas, that would like to have access to the Red River.

Construction on the terminal is scheduled to begin immediately, and completion is scheduled for the last quarter of this year.