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EFTA01771038

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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 Fir

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