Fuel Switching | Fuel | Clean Fuel | Coal to Gas | Coal to Natural Gas | Diesel to Gas | Diesel to Natural Gas

Fuel Switching
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Clean Combustion * Coal to Gas * Coal to Natural Gas * Clean Power Generation * Diesel to Gas

Diesel to Natural Gas * Emissions Abatement * Emissions Engineering * Fuel Switching * Greenhouse Gas Reporting

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Fuel Switching is a way to move away from one type of fuel to another. Diesel to Natural Gas is one of the fastest-growing types of Fuel Switching in the transportation industry due to the savings it provides the companies that own fleets of cars, trucks and tractor-trailers. Even when you consider the change-outs of diesel engines to natural gas engines, the fuel savings of natural gas provides a very quick return on investment.

In addition to fleet owners of there are a large number of other Fuel Switching opportunities for customers in the commercial, industrial and utility industries. Popular Fuel Switching opportunities exist in transitioning away from fossil fuels. Replacement fuels for fossil fuels include the following renewable fuels;

Diesel to Natural Gas is a "fuel switching" strategy which has a number of key benefits for companies with either a small or large fleet of cars, trucks or other vehicles. As it related to Diesel to Natural Gas, a few of these benefits include;

What is Compressed Natural Gas (CNG)?

Compressed Natural Gas or CNG, is widely available throughout the U.S. from domestically produced natural gas wells and natural gas pipelines and local distribution companies. Natural gas is available to end-users through the utility infrastructure. It is also clean burning and produces significantly fewer harmful emissions than reformulated gasoline or diesel when used in natural gas vehicles. In addition, commercially available medium- and heavy-duty natural gas engines have demonstrated over 90% reductions of carbon monoxide (CO) and particulate matter and more than 50% reduction in nitrogen oxides (NO_x) relative to commercial diesel engines. Natural gas can either be stored onboard a vehicle as Compressed Natural Gas (CNG) at 3,000 or 3,600 psi or as Liquefied Natural Gas (LNG) at typically 20-150 psi. Natural gas can also be blended with hydrogen.

At present, there are approximately 11 million natural gas vehicles. By country:

Pakistan - 2.4 million
Argentina - 1.8 million
Iran - 1.7 million
Brazil - 1.6 million
India - 725,000

The U.S. has just over 100,000 NGVs at present, mostly buses.

Compressed Natural Gas or CNG, is widely available throughout the U.S. from domestically produced natural gas wells and natural gas pipelines and local distribution companies. Natural gas is available to end-users through the utility infrastructure. It is also clean burning and produces significantly fewer harmful emissions than reformulated gasoline or diesel when used in natural gas vehicles. In addition, commercially available medium- and heavy-duty natural gas engines have demonstrated over 90% reductions of carbon monoxide (CO) and particulate matter and more than 50% reduction in nitrogen oxides (NO_x) relative to commercial diesel engines. Natural gas can either be stored onboard a vehicle as Compressed Natural Gas (CNG) at 3,000 or 3,600 psi or as Liquefied Natural Gas (LNG) at typically 20-150 psi. Natural gas can also be blended with hydrogen.

What Types of Vehicles Run on Compressed Natural Gas?

Dedicated Natural Gas Vehicles (NGVs) are designed to run only on natural gas; bi-fuel NGVs have two separate fueling systems that enable the vehicle to use either natural gas or a conventional fuel (gasoline or diesel). In general, dedicated NGVs demonstrate better performance and have lower emissions than bi-fuel vehicles because their engines are optimized to run on natural gas. In addition, the vehicle does not have to carry two types of fuel, thereby increasing cargo capacity and reducing weight.

There are a few light-duty NGVs still available, but if you want a specific type of vehicle, you may want to consider retrofitting a vehicle to an NGV by using an aftermarket conversion system. Heavy-duty NGVs are also available as trucks, buses, and shuttles. Approximately one of every five new transit buses in the United States is powered by natural gas.

As a new twist, tests are being conducted using natural gas vehicles that are fueled with a blend of compressed natural gas and hydrogen.

Vehicle Availability

This model year, auto manufacturers are producing fewer models than in years past. In order to get more vehicle options, you may choose to retrofit your own vehicle.

Fuel Availability

Compressed Natural Gas fueling stations are located in most major cities and in many rural areas. Public Liquefied Natural Gas stations are limited and used mostly by fleets and heavy-duty trucks. Liquefied Natural Gas is available through suppliers of cryogenic liquids.

Vehicle Safety

Natural gas vehicles are just as safe as today's conventional gasoline and diesel vehicles. They use pressurized tanks, which have been designed to withstand severe impact, high external temperatures, and environmental exposure.

Adequate training is required to operate and maintain natural gas vehicles because they are different than gasoline or diesel vehicles. Training and certification of service technicians is required.

Vehicle Costs

In general, a natural gas vehicle can be less expensive to operate than a comparable conventionally fueled vehicle depending on natural gas prices. Natural gas can cost less than gasoline and diesel (per energy equivalent gallon); however, local utility rates can vary.

Purchase prices for natural gas vehicles are somewhat higher than for similar conventional vehicles. The auto manufacturers' typical price premium for a light-duty Compressed Natural Gas vehicle can be $1,500 to $6,000, and for heavy-duty trucks and buses it is in the range of $30,000 to $50,000. Federal and other incentives can help defray some of the increase in vehicle acquisition costs. In addition, fleets may need to purchase service and diagnostic equipment if access to commercial Compressed Natural Gas/Liquefied Natural Gas vehicle maintenance facilities is not available.

Retrofitting a conventional vehicle so it can run on Compressed Natural Gas may cost $2,000 to $4,000 per vehicle.

High-pressure tanks that hold Compressed Natural Gas require periodic inspection and certification by a licensed inspector.

Fleets doing on-site maintenance may need to upgrade their facilities to accommodate NGVs. Costs for upgrading maintenance facilities will depend on the number of modifications required.

Some natural gas vehicle manufacturers now recommend oil changes at intervals twice as long as similar gasoline or diesel models (10,000-12,000 miles). Refer to the vehicle owner's manual or consult the manufacturer to determine proper maintenance intervals.

Benefits

Performance

BIOMETHANE NEEDED NOW

IN TEXAS, NEW YORK, PENNSYLVANIA,
MASSACHUSETTS & CALIFORNIA

BIOMETHANE can be produced anywhere in the Continental U.S.,
we can take care of transportation to our clients.

Our "Integrated" CHP Systems (Cogeneration and Trigeneration) Plants
Have Very High Efficiencies, Low Fuel Costs & Low Emissions

The Effective Heat Rate is Approximately
4100 btu/kW & System Efficiency is 92% Plant

The CHP System below is Rated at 900 kW and Features:
(2) Natural Gas Engines @ 450 kW each on one Skid with Optional
Selective Catalytic Reduction system that removes Nitrogen Oxides to "non-detect."

Our CHP Systems may be the best solution for your company's economic and environmental sustainability as we "upgrade" natural gas to clean power with our clean power generation solutions.

Our Emissions Abatement solutions reduce Nitrogen Oxides to "non-detect" which means our Trigeneration energy systems can be installed and operated in most EPA non-attainment regions!

We provide engineering and midstream natural gas services which are led by a top 250 EPC engineering company, as well as smaller engineering firms assisting us with acquisitions and project development services in the following areas;

Our engineering team provides complete natural gas engineering services from the wellhead to the burner-tip with a focus in the midstream sector. Our engineering and project development development services (some provided by the leading EPC company we work with, include;

Our work is performed on a strict adherence to "vendor-neutrality" and seek to maximize our client's "triple bottom line" returns: people, planet and profits.

To receive a preliminary, no obligation consult, email us a summary or overview of your project, including the following basic information:

Amine plants provide H2S removal as well as CO2 removal from natural gas and liquid hydrocarbons. The process involves both absorption and chemical reactions.

Amine units provide H2S removal as well as CO2 removal from natural gas and liquid hydrocarbons. The process involves both absorption and chemical reactions.

Amine, is the shortened form of " Mono Ethanol Amine" or MEA. MEA removes H2S or acid gases through a chemical reaction with hydrogen sulfide or carbon dioxide which forms a salt compound (see Gas Sweetening diagram below).

When the MEA has absorbed the H2S ( and carbon dioxide) it is referred to as " rich" MEA.

When the acid gases have been removed from the mono ethanol amine it's called lean MEA.

Amine sweetening, also referred to as "amine gas treating," "gas sweetening" and "acid gas removal," is the natural gas treating process that uses aqueous solutions of various alkylamines ("amines") for H2S removal, or removing hydrogen sulfide (H2S) and carbon dioxide (CO2) from natural gas and other gas stream.

The term "amine sweetening" and "gas sweetening" are used in hydrogen sulfide and/or mercaptans are commonly referred to as gas sweetening processes because they result in products which no longer have the sour, foul odors of mercaptans and hydrogen sulfide.

There following are the commonly used amines in natural gas treating:

Monoethanolamine (MEA)
Diethanolamine (DEA)
Methyldiethanolamine (MDEA)
Diisopropylamine (DIPA)
Aminoethoxyethanol (Diglycolamine®) (DGA®)

The most commonly used amines in industrial plants are the alkanolamines MEA, DEA, and MDEA.

Biomethane is "renewable natural gas" made from organic sources - which starts out as "biogas" but then is cleaned up in a process called "Biogas to Biomethane" which removes the impurities in biogas such as carbon dioxide, siloxanes and hydrogen sulfides (H2S).

Biomethane is soon to be re-classified from the category of "Low Carbon Fuels" to "Super Low Carbon Fuel" due to it being the greenest of all biofuels!

"Cleaned-up" and ready for use in an onsite cogeneration or trigeneration power plant, the Biomethane could also be sold to a pipeline company and completely replace the "natural gas" that is typically transported to markets via the vast underground pipeline system.

Biomethane will some day replace the "methane" that is sold by natural gas utility companies.

Biomethane has an unlimited supply, whereas the methane sold by gas companies has a limited supply. Biomethane is renewable, whereas the methane sold by your gas utility company is not renewable. Biomethane recovery, use and production generates "Greentags" or a "Renewable Energy Credit" for the owners and is GOOD for our environment.

As previously mentioned, Biomethane is "naturally" produced from organic materials as they decay. Sources of Biomethane include; landfills, POTW's/Wastewaster Treatment Systems, and every tree or agricultural product that is no longer living. Biomethane is also generated from animal operations where manure can be collected and the Biomethane is generated from anaerobic digesters where the manure decomposes.

Biomethane, after installation of the Biomethane equipment is essentially free, as opposed to buying natural gas, presently costing around $10.00/mmbtu.

Methanogenesis is the production of CH4 and CO2 by biological processes that are carried out by methanogens. Unlike the price of natural gas, which has been very unstable, and wildly fluctuating from $5.50 to as much as $17.00/mmbtu this past year, Biomethane prices will tend to be more stable over the years. As more and more Biomethane is produced, and produced in reliable and sustainable methods that can fuel our energy needs now and for.

BTEX removal, as utilized in the natural gas treating and natural gas industry, is the process of removing benzene, toluene, ethylbenzene, and xylene from the natural gas stream and upgrading the natural gas to "pipeline quality gas."

What is BTEX?

BTEX, as defined by the Environmental Protection Agency (EPA), is the term used for benzene, toluene, ethylbenzene, and xylene which, as a group, are also referred to as "volatile organic compounds," and normally found in petroleum products, including gasoline and diesel fuel.

Did you know that 10% of our nation's electricity now comes from "cogeneration" plants?

And because cogeneration is so efficient, it saves its customers up to 40% on their energy expenses, and provides even greater savings to our environment through significant reductions in fuel usage and much lower greenhouse gas emissions.

Cogeneration - also known as “combined heat and power” (CHP), cogen, district energy, total energy, and combined cycle, is the simultaneous production of heat (usually in the form of hot water and/or steam) and power, utilizing one primary fuel such as natural gas, or a renewable fuel, such as Biomethane, B100 Biodiesel, or Synthesis Gas.

Cogeneration technology is not the latest industry buzz-word being touted as the solution to our nation's energy woes. Cogeneration is a proven technology that has been around for over 120 years!

Our nation's first commercial power plant was a cogeneration plant that was designed and built by Thomas Edison in 1882 in New York. Our nation's first commercial power plant was called the "Pearl Street Station."

Desiccant Dehydration using the adsorption typically consists of two (or more) adsorption towers. Each of these adsorption towers alternate between cycles wherein one tower is actively removing water/moisture from the gas stream, while the other adsorption tower is being "re-generated." Each of these adsorption towers are filled with a "desiccant" that can adsorb a limited amount of water and therefore require re-generation, typically by heat.

Standard desiccants include activated alumina or a granular silica gel material.

In the Desiccant Dehydration process, wet natural gas enters the adsorption towers, from the top and the wet natural gas flows down through the desiccant material, to the bottom. of the adsorption tower. As the wet natural gas passes around the desiccant material, water is separated from the natural gas which is "adsorbed" on the surface of these desiccant particles. By the time the natural gas reaches the bottom of the adsorption tower, over 98% of the water is adsorbed onto the desiccant material, leaving the dry gas to exit the bottom of the adsorption tower. After the desiccant in the active adsorption tower has adsorbed all the water/moisture it can, and reaches capacity, that active adsorption tower is shut down, and an adjacent adsorption tower then activates. During this time, the adsorption tower that has been shut down is "re-generated" and the water/moisture that was adsorbed by the desiccant is heated that vaporizes the water molecules, thereby "recharging" the desiccant and making it ready for use, when the adjacent adsorption tower has completed its cycle.

Energy investment banking is very similar to traditional investment banking in that energy investment banks raise capital, trade in securities and manage corporate mergers and acquisitions, except that energy investment banks operate in the energy, oil and natural gas and more recently, renewable energy sectors.

We are interested in working with principals at energy investment banks that have interest in providing capital for companies in the energy, oil and natural gas and renewable energy industries. The companies we either represent or are providing consulting services to have; superior products, services, assets, management–led buyouts, acquisition financings, minority recapitalizations, capital for funding the growth of existing businesses or other opportunities - all of which are led by a superior management team that is adept at generating average profits and provide a "durable competitive advantage."

2. Company must have a Superior Management Team with a Compelling Business Model and durable competitive advantage. Present management team must have a proven record of achievement, exceptional ability, unyielding determination, and unquestionable integrity. We believe it is best to leave control with current the present owners and/or management team so that they can focus on their products/services, customers, employees and shareholders well for the long term.

2. Investment Size: $5 million to $25 million of equity capital. We may partner or syndicate with other investors or venture capital firms larger transactions.

3. EBITDA: Near–profitable to $10 million.

4. Growth: Historical growth of at least 20% per year which is sustainable into the future.

5. Market Size: Growing rapidly or large enough to allow company to achieve $100 million in revenues.

6. Industries: Clean Power Generation sector and Midstream Oil and Gas

7. Location: Continental U.S.

Our investors and/or partner companies / investment banks seek to make investments for at least 6 to 7 years and provide "patient capital" for sustained growth and to assist our portfolio companies in succeeding.

PLEASE NOTE: There is NO interest in any of the following: startups, publicly traded companies, real estate developments of any kind, project finance or funding opportunities, oil and gas exploration companies (oil and gas production companies acceptable), troubled companies, turnarounds or in any company where senior management is departing.

If you have a business and financing need that meet all of the above criteria (items 1 - 7) above, we would be interested in reviewing an Executive Summary of your Business Plan, i.e. your 1 minute "elevator pitch" in no more than 100 words - which you may send to us at: info@EnergyInvestmentBanking.com

A company with a strategic competitive advantage consistently outperforms their competition through its strategic competitive advantage(s) which is that company's unique value proposition wherein it produces better products or services than anyone else.

An Energy Services Company, more commonly referred to as an "ESCO," is a company that provides/installs and manages a suite of comprehensive energy solutions for a client company which which reduces the energy expenses and greenhouse gas emissions for the client. Many times, the ESCO makes the investment(s) on behalf of the client company and owns/operates/manages the energy solution for a period of time, typically 10 years, either through a "Power Purchase Agreement" (PPA) or an "Energy Services Agreement" (ESA).

The energy service company business model originated in the 1980's as a result of energy shortages and energy price spikes, primarily centered around natural gas and natural gas being deregulated by FERC under FERC Order 436. These companies primarily focused in the demand side management market by making "energy efficient lighting" upgrades, replacing old/inefficient lighting with more efficient lighting for hospitals, schools and office buildings.

Today's energy service company provides a much broader range of energy services that include onsite power generation systems such as a cogeneration or trigeneration energy systems. Today's ESCO's have identified a unique market opportunity wherein today's commercial businesses, including municipal/government agencies, are seeking to reduce or eliminate their greenhouse gas emissions as well as reducing their energy expenditures. Therefore, ESCO's are including energy management/energy engineering designs that integrate energy savings projects to include; energy conservation/energy efficiency, energy infrastructure outsourcing, onsite power generation, demand side management and energy supply with risk management.

ESCO's typically perform an in-depth analysis of the client's facility/facilities starting out with a review of the client's past three years energy expenses (natural gas, propane, electricity) and many ESCO's now also include past three years water, sewer and waste expenses as well. After the review and audit of of the past three years energy expenses, the ESCO develops an ESCO solution that installs/owns/operates the optimum energy services solution(s) maintaining the solution(s)/system(s) to ensure performance and energy savings during the payback period.

Flare Gas Recovery units recover valuable fuels that can be used to provide fuel for an onsite power generation plant. Our waste-to-energy and waste to fuel systems significantly or entirely, reduces your facility's emissions (such as NOx , SOx, H2S,
CO , CO2 and other Hazardous Air Pollutants/Greenhouse Gas Emissions) and convert these valuable emissions from an environmental problem into a new cash revenue stream and profit center.

Flare Gas Recovery and Vapor Recovery Units can be located in hundreds of applications and locations. At a Wastewater Treatment System (or Publicly Owned Treatment Works - "POTW") gases from the facility can be captured from the anaerobic digesters, and manifolded/piped to one of our onsite power generation plants, and make, essentially, "free" electricity for your facility's use. These associated "biogases" that are generated from municipally owned landfills or wastewater treatment plants have low btu content or heating values, ranging around 550-650 btu's. This makes them unsuitable for use in natural gas applications. When burned as fuel to generate electricity, however, these gases become a valuable source of "renewable" power and energy for the facility's use or resale to the electric grid.

A gas fractionation plant is a facility that separates mixtures of light hydrocarbons into individual, or industrially pure, substances. Gas fractionation plants are an integral part of gasoline plants, gas processing plant, gas refineries, and chemical and petrochemical processing plants. The raw materials of gas fractionation plants are composed mainly of hydrocarbons containing one to eight carbon atoms per molecule. The separation process at the gas fractionation plant of the hydrocarbon mixtures is performed by fractional distillation in "column distillers."

The process for separating natural gasoline in a gas fractionation plant includes preheating of the natural gasoline in a heat exchanger and feeding it to a "propane column." The propane vapors are next "condensed" in a condenser-cooler which then flows to a a reflux vessel where the propane vapors exit from the top part of the column. Some of the propane is returned to the top of the column as a "reflux" and the excess propane is drawn off in the form of a finished product.

After preheating, the liquid from the bottom of the column is fed for further separation by the same method into the next column, where a mixture of butanes is separated from the liquid in the form of overflow, and the gasolines exit from the lower part of the column. The separation of butanes into isobutane and normal butane, as well as gasoline into isopentane, normal pentane and hexanes, continues in the same type process. approximate pure-substance content after processing of natural gasoline is approximately:

Picture of a gas processing and fractionation plant which includes: propane column, stabilization column,
isobutane column, condenser-coolers, preheaters for bottom of column, heat exchangers and coolers

Improvements in the technological system of fractionation plants are designed to reduce capital expenditures and power costs and to automate monitoring and control systems by means of electronic computers and by the installation of chromatographic product quality analyzers on flow lines.

Gas Gathering systems are the physical facilities that accumulate and transport natural gas from a well to an acceptance point of a transportation pipeline are called a gas gathering system.

Gas Gathering lines are small-diameter pipelines move natural gas from the wellhead to the gas processing plant or to an interconnection with a larger mainline pipeline. Transporting natural gas from the wellhead to the final customer involves several physical transfers of custody and multiple processing steps. A natural gas pipeline system begins at the natural gas producing well or field. Once the gas leaves the producing well, a gas gathering system directs the flow either to a gas processing plant or directly to the mainline transmission grid, depending upon the initial quality of the wellhead product.

The processing plant produces pipeline-quality natural gas. This gas is then transported by pipeline to consumers or is put into underground storage for future use. Storage helps to maintain pipeline system operational integrity and/or to meet customer requirements during peak-usage periods.

Transporting natural gas from wellhead to market involves a series of processes and an array of physical facilities. Among these are:

A first-of-its-kind, natural gas-to-liquids or "gas liquefaction" facility was built in the U.S. that produces high-performance, sulfur-free fuel. The gas liquefaction plant produces approximately 70 bbls of ultra clean fuel per day from natural gas.

Natural Gas Processing plants separate the various hydrocarbons and natural gas liquids from the pure natural gas (methane or CH4) to produce what is known as 'pipeline quality' natural gas. Natural gas pipeline companies have requirements on natural gas they buy from producers which is why the natural gas processing plants are located where they are, and why they separate the ethane, propane, butane, and pentanes from the methane. Natural gas liquids or NGLs include ethane, propane, butane, iso-butane, and natural gasoline.

The principal service provided by a gas processing plant to the natural gas mainline transmission network is that it produces pipeline quality natural gas. Natural gas mainline transmission systems are designed to operate within certain tolerances. Natural gas entering the system that is not within certain specific gravities, pressures, Btu content range, or water content level will cause operational problems, pipeline deterioration, or even cause pipeline rupture.

Gas processing plants are also facilities designed to recover natural gas liquids from a stream of natural gas that may or may not have passed through lease separators and/or field separation facilities. These facilities also control the quality of the natural gas to be marketed. Several types of gas processing plants, employing various techniques and technologies to extract contaminants and natural gas liquids, are used to produce pipeline quality "dry" gas. At many processing plants the primary objective is the production of dry gas (demethanizing). Any remaining natural gas liquids extraction stream is directed to a separate plant to undergo what is referred to as a "gas fractionation" process.

But a number of natural gas processing plants do include these gas fractionation plants where saturated hydrocarbons are removed from natural gas and separated into distinct parts, or "fractions," such as propane, butane, and ethane. Essentially, natural gas is methane, a colorless, odorless, flammable hydrocarbon gas (CH₄). Also present in natural gas production, especially that in association with oil production, are a number of petroleum gases. They include (in addition to ethane, propane and butane) ethylene, propylene, butylene, isobutane, and isobutylene. They are derived from crude oil refining or natural gas fractionation and are liquefied through pressurization.

Sulfur exists in natural gas and is known as hydrogen sulfide (H2S). Natural gas is usually considered "sour" if hydrogen sulfides content exceeds 5.7 milligrams of H2S per cubic meter of natural gas. The process hydrogen sulfide removal from sour gas is commonly referred to as "gas sweetening."

The primary process for sweetening "sour" natural gas ("sour" natural gas contains H2S or hydrogen sulfides) is quite similar to the processes of glycol dehydration and NGL absorption. In this case, however, amine solutions are used to remove the hydrogen sulfide. This process is known simply as the 'amine process', or alternatively as the Girdler process, and is used in 95 percent of U.S. gas sweetening operations. The sour gas is run through a tower, which contains the amine solution. This solution has an affinity for sulfur, and absorbs it much like glycol absorbing water. There are two principle amine solutions used, monoethanolamine (MEA) and diethanolamine (DEA). Either of these compounds, in liquid form, will absorb sulfur compounds from natural gas as it passes through. The effluent gas is virtually free of sulfur compounds, and thus loses its sour gas status. Like the process for NGL extraction and glycol dehydration, the amine solution used can be regenerated (that is, the absorbed sulfur is removed), allowing it to be reused to treat more sour gas.

Although most sour gas sweetening involves the amine absorption process, it is also possible to use solid desiccants like iron sponges to remove the sulfide and carbon dioxide.

Sulfur can be sold and used if reduced to its elemental form. Elemental sulfur is a bright yellow powder like material, and can often be seen in large piles near gas treatment plants, as is shown. In order to recover elemental sulfur from the gas processing plant, the sulfur containing discharge from a gas sweetening process must be further treated. One sulfur recovery process is called the "Claus" process, and involves the use of thermal and catalytic reactions to extract the elemental sulfur from the hydrogen sulfide solution.

Glycol dehydration is used in the production and processing of natural gas by using a liquid desiccant that removes water from natural gas and natural gas liquids (NGL).

H2S, or Hydrogen Sulfide, is a hazardous and corrosive element found in oil and natural gas which needs to be removed from the hydrocarbon before the oil or natural gas can be sold. The hydrogen sulfides are usually removed in a mid-stream gas processing facility by either iron sponges or amine plants.

Hazardous Air Pollutants or "HAPs" are generally defined as those pollutants that are known or suspected to cause serious health problems. Section 112(b) of the Clean Air Act currently identifies a list of 188 pollutants as HAPs.

What is a Heater Treater?

A "Heater Treater" is used in the oil and gas production process and is used to removes water and gas from the produced oil - and to improve its quality for sale into a crude oil pipeline or for other transport. A heater treater typically combines the following components inside the heater treater: a heater, free-water knockout, and oil and gas separator.

A JT Plant, or "Joule-Thomson" plant operates as a gas processing plant in that the JT Plant operates through a natural gas pressure differential causing the temperature to fall significantly, thereby making the natural gas liquids (propane, butane, and natural gasoline) within the natural gas stream, to "condense" and fall out of the natural gas stream.

The purpose of a JT Plant is to condense the heavier natural gas liquids from the natural gas stream to meet that specific natural gas pipeline's "pipeline quality gas" specifications thereby making the natural gas saleable to downstream end-users/customers. The natural gas liquids that are produced from the JT plant are stored in tanks for eventual sale as propane, butane and natural gasoline.

What is Liquefied Natural Gas (LNG)?

Liquefied Natural Gas, or LNG, is natural gas (methane or CH4) that is cooled to - 260 degrees F. (below zero). At this temperature, natural gas turns into a liquid (liquefied natural gas) making it very economical to ship large amounts of energy in a relatively small space.

When natural gas has been liquefied, the natural gas that was once a "gas" now takes up to 600 times LESS as a liquid, as when it was in its previous gas state.

Because Liquefied Natural Gas is still natural gas, its carbon emissions as well much lower as compared to other fossil fuels, such as coal, diesel or oil.

Liquefied Natural Gas is colorless, odorless, colorless, non-corrosive and non-toxic. It weighs less than half the equivalent amount that water does.

Liquefied Natural Gas achieves a higher reduction in volume than compressed natural gas (CNG) so that the energy density of Liquefied Natural Gas is 2.4 times that of compressed natural gas or 60% of that of diesel fuel. This makes Liquefied Natural Gas a highly cost-effective fuel to transport over long distances where pipelines do not exist. Cryogenic tanks and LNG ships transport the LNG around the world on oceans and cryogenic tanks transport the LNG on trains and 18-wheelers. Think of cryogenic tanks like an insulated thermos bottle as the LNG must be kept at - 260 degrees F. (below zero) to remain in its liquid state.

Liquefied Natural Gas is used as any fuel may be used, as well as transporting natural gas to markets, where it is then re-gasified and distributed in natural gas pipelines.

Commonly referred to as either Liquid Petroleum Gas, LPG or Propane, Liquid Petroleum Gas is one of our country's most versatile and clean burning fuels, that is made in the U.S.A., and also imported from Canada and Mexico.

Liquid Petroleum Gas presently provides about 5% of our country's total energy requirements.

Liquid Petroleum Gas such as Propane exists in liquid and gas states. At atmospheric pressure and temperatures above – 44 degrees F, Liquid Petroleum Gas is a non-toxic, colorless and odorless gas.

Just like natural gas, an identifying odor called Mercaptan is added to Liquid Petroleum Gas so it can be readily detected in the event of a leak.

When contained in an approved cylinder or tank, Liquid Petroleum Gas (Propane) exists as a liquid and vapor. The vapor is released from the container as a clean-burning fuel gas. Liquid Petroleum Gas (Propane) is 270 times more compact as a liquid than as a gas, making it economical to store and transport as a liquid.

Approximately 90 percent of the United States’ Liquid Petroleum Gas supply is produced domestically, while 70% of the remaining supply is imported from Canada and Mexico. Approximately equal amounts of Liquid Petroleum Gas comes from crude oil refining and natural gas processing.

Liquid Petroleum Gas is a readily available and secure energy resource that is clean burning and has about 50% less greenhouse gas emissions than electricity and coal. Liquid Petroleum Gas is already an approved, alternative fuel vehicle fuel listed in the 1990 Clean Air Act, as well as the National Energy Policy Act of 1992.

At Home

Propane gas is the most widely used alternative fuel, with nearly 4 million vehicles worldwide running on propane. More than 350,000 vehicles run on propane in the U.S., according to the U.S. Department of Energy’s Alternative Fuels Data Center.

Recreation

Because Liquid Petroleum Gas is portable and clean-burning, it is used by millions of recreational vehicle owners and camping.

At the Farm

Liquid Petroleum Gas is a reliable fuel supply on nearly 700,000 farms, where it is used in a wide range of agricultural applications, such as crop drying, flame cultivation, fruit ripening, irrigation (irrigation pumps), space heating, water heating, refrigeration and farm engines.

Commercial and Industrial Markets

More than 1 million commercial businesses, including; hotels, restaurants and laundries/cleaners use Liquid Petroleum Gas in the same way a homeowner does: for heating and cooling air, heating water, cooking, refrigeration, drying clothes and lighting, as well as generating steam in process steam boilers.

More than 350,000 industrial sites rely on it for cogeneration and trigeneration power plants, space heating, brazing, soldering, cutting, heat treating, annealing, vulcanizing, and generating steam in process steam boilers. Petrochemical industries use Liquid Petroleum Gas in the manufacture of plastics.

What is LNG Liquefaction?

LNG Liquefaction is a process that refrigerates Natural Gas until it is condensed into a liquid at close to atmospheric pressure (maximum transport pressure set at around 25 kPa/3.6 psi) by the natural gas to approximately −162 °C (−260 °F) which reduces its volume to 1/600th or its original volume for ease of transportation.

Liquefied Natural Gas or simply "LNG" is natural gas which is primarily methane or CH4 that has been liquefied to reduce its volume. As previously stated, LNG is colorless, odorless, non-toxic and non-corrosive. LNG hazards include flammability, freezing and asphyxia.

The LNG Liquefaction takes place at an LNG terminal, typically located at an ocean port where one or more natural gas pipelines deliver natural gas. The natural gas has had the contaminants removed by gas processing and purification, which removes, condensates such as water, dust, helium, mud, oil, CO2, H2S and mercury. The natural gas is then cooled down in stages until it is finally liquefied at -160 degrees C. The Liquefied Natural Gas is stored in cryogenic storage tanks and loaded onto an LNG ship and shipped.

A Master Limited Partnership or MLP is a limited partnership that is publicly traded on a securities exchange.

MLPs combine the tax benefits of Limited Partnerships with the liquidity and protection/oversight of a publicly traded security.

Master Limited Partnerships are limited by regulation to apply to specific businesses - most notably - natural resources, including; oil and natural gas extraction and transportation.

To qualify for MLP status, a partnership must generate at least 90 percent of its income from "qualifying" sources/resources. For many Master Limited Partnerships, this includes activities related to the production, processing or transportation of oil, natural gas and coal.

Master Limited Partnerships pay their investors through Quarterly Required Distributions or QRDs. The amount of the QRDs is stated in the contract between the Limited Partners (the investors) and the General Partner (the managers). Failure of the General Partner to pay the quarterly required distributions constitutes a default of the MLP Agreement.

Due to the stringent provisions on Master Limited Partnerships and the QRD, the majority of all Master Limited Partnerships are pipeline businesses, and natural gas companies engaged in the "midstream" oil and natural gas sector, which generated a reliable and steady income from the oil and natural gas sector.

Because MLPs are a partnership, there is no corporate income tax at either the state or federal level. The Limited Partners (investors) are able to record a pro-rated share of the investment in the Master Limited Partnership's depreciation on their personal income tax filings which further reduces their (that year's) tax liabilities. This is the primary benefit of Master Limited Partnerships and provides MLPs relatively inexpensive funding and capital costs. Simultaneously, this makes Master Limited Partnerships unattractive to "tax-deferred funds" that are unable to utilize this tax savings advantage. To encourage tax-deferred investors, MLPs set up new corporation holding companies for their Limited Partner's claims which can then issue equity.

In most new Master Limited Partnerships, the General Partner starts out with a small stake or position in the company - typically in the 2% to 5% range. However, the MLP receives "incentive distributions" from the net income after the Quarterly Required Distributions. As the incentive distributions are normally paid in the form of increased equity claims this allows the General Partner to attain an increasingly greater percentage of ownership in the company over time.

Midstream Assets include those assets and services that link the supply side of the value chain within the industry, to the demand side for for these energy commodities.

The Midstream Assets and the Midstream Oil and Gas sector is the bridge between the energy producers and the energy end-users and - therefore, can only be as strong as the weakest link or bridge within the midstream oil and gas sector.

The downstream sector usually refers to crude oil refineries and the selling and distribution of natural gas and products derived from crude oil. These products include Liquefied Petroleum Gas or "LPG," gasoline, jet fuel, diesel fuel, and other fuel oils, as well as asphalt and petroleum coke.

What are Natural Gas Liquids?

Natural Gas Liquids or "NGL" are those hydrocarbons in natural gas that are separated from the gas as liquids through the process of absorption, condensation, adsorption, or other methods in gas processing or cycling plants.

Natural Gas Liquids include ethane, propane, butane, iso-butane, and pentane or natural gasoline. These NGLs are sold separately and have a number of different uses which include; enhanced oil recovery in oil wells, providing raw materials for oil refineries or petrochemical plants and as sources of liquid fuel such as propane.

Typically, these liquids consist of propane and heavier hydrocarbons and are commonly referred to as lease condensate, natural gasoline, and liquefied petroleum gas.

There are periods of time in peak periods of natural gas use, that a natural gas company (pipeline or LDC) may not be able to keep up with these peak demand periods. Natural gas storage is a way to help provide for the natural gas reserves or natural gas supplies that are needed during these peak demand periods. Having strategically-located natural gas storage capabilities can assist natural gas pipelines or LDCs provide the natural gas supply when their customers demand.

Recent governments studies conclude that demand for clean-burning natural gas has continued to rise. In the last 20 years, natural gas consumption has risen nearly 25%.

The Energy Information Administration (EIA) estimates there are over 2,100 Trillion cubic feet (Tcf) of "technically recoverable natural gas" reserves in the United States, as reported in the EIA's 2010 Annual Energy Outlook. In 2009, the United States used just over 22 Trillion cubic feet of natural gas, making the U.S. one of the global leaders in natural gas consumption. This means the U.S. has enough natural gas supply to last about 100 years.

With greater demand comes greater need to be able to store natural gas. In the past 20 years, natural gas storage has increased less than 5%. This creates a serious constraint that can impact our nation by failing to keep up with natural gas supply and demand. Existing natural gas storage facilities will not be able to keep up with the demand for natural gas during increasingly greater periods of increasing demand, which could cost all consumers of natural gas billions of dollars.

There is a critical need for new high-volume natural gas storage facilities to meet the escalating demand for natural gas which will provide predictability of natural gas supply and reduce or eliminate volatility of natural gas prices during peak periods. Natural gas storage "balance" the load - or supply and demand requirements of all natural gas consumers and provides the "cushion" needed for large supplies of natural gas to serve all consumers during periods of peak demand.

Natural gas storage can take place in a number of underground natural gas facilities. From the time the natural gas is produced, it may be stored temporarily in underground natural gas storage facilities that may be one or more of the following; depleted oil or natural gas fields/reservoirs, salt dome caverns/salt dome storage or former aquifers.

Most of the natural gas storage in the U.S. takes place in naturally-occurring natural gas or oil reservoirs that have been depleted through production. An underground gas storage facility must contain enough “base gas” or “cushion gas” that provides adequate pressure to re-produce and extract the natural gas.

As natural gas is produced from either a natural gas well, or from an oilwell which contains "associated gas," the natural gas must be treated or processed before it can be sold/injected as "pipeline quality gas" and then be used at a home or business as a fuel.

Natural gas treating or processing, takes place at gas processing plants to remove the impurities and other hydrocarbons other than the methane itself, or CH4.

The by-products and impurities of natural gas that must be treated or processed include; ethane, propane, butane, isobutane, pentane, isopentane and higher molecular weight hydrocarbons, as well as H2S or elemental sulfur, carbon dioxide (CO2), water vapor and sometimes helium and nitrogen.

NGL, or natural gas liquids fractionation plants purpose is to separate the mixed natural gas liquids stream into separated products. These natural gas liquids that are separated by heat at NGL Fractionation plants include; ethane, propane, normal butane, isobutane and natural gasoline.

Toward the end of the gas processing process and natural gas treating process, wherein the "raw" natural gas (methane or CH4) is readied for sale as "pipeline quality gas," the recovery of the valuable natural gas liquids (NGL) takes place. In many gas processing facilities, a cryogenic plant - which provides low-temperature distillation that recovers the natural gas liquids. The residue gas from the NGL recovery process, is the purified pipeline quality gas that is sold via pipeline and sent so end-users such as LDCs (local distribution companies - or natural gas utility) for distribution via natural gas mains in their cities and markets.

Other NGL recovery methods include an NGL fractionation "train" which typically consists of three distillation towers in a series. The series occurs in the following order:

The overhead product from the deethanizer is ethane - after which the bottoms flow to the depropanizer. The overhead product from the depropanizer is propane and the bottoms then flow to the debutanizer. The overhead product from the debutanizer is a mixture of normal butane and iso-butane. The bottoms products are a C5+ mixture. Most cryogenic plants, however, do not include fractionation due to economic reasons. Therefore the NGL stream is then transported as a mixed product to separate, standalone fractionation plants that are located near refineries or chemical plants that need these NGLs feedstock.

"Pipeline Quality Gas," is the purified and processed form of natural gas (CH4, natural gas or methane) that has had impurities, natural gas liquids and contaminants such as H2S (hydrogen sulfide) removed to meet "pipeline quality" requirements. This makes the natural gas useable to residential, commercial and industrial customers.

Raw biogas, in order to become Biomethane or Pipeline Quality Gas, must for from "Biogas to Biomethane" wherein the impurities and contaminants of the biogas are removed. This process of biogas purification to biomethane is also called "Gas Sweetening." The impurities and contaminants of biogas that need to be removed to then have Biomethane or Pipeline Quality Gas include; carbon dioxide (CO2), water, hydrogen sulfide (H2S) and Siloxane. Some of the Biogas to Biomethane technologies include; iron sponge, water scrubbing, membrane separation, pressure swing adsorption (PSA), and mixing with higher quality gases.

Stranded Gas, also referred to as "stranded natural gas," refers to natural gas that has been discovered but has not, or will not be developed due to their location or the economics of getting the natural gas delivered to the marketplace.

Did you know that approximately 40% of the world's available natural gas reserves are classified as stranded gas?

The Department of Energy estimates that there are 3,000 Tcf of stranded gas world-wide!

Stranded gas may be stranded - or become stranded in the future, for several reasons;

* the nearest natural gas pipeline may be too far from the well in terms of the economics of running a new pipeline.
* the volume of natural gas produced may not be of sufficient quantities for the natural gas pipeline company.
* the quality of the natural gas produced may not meet the "pipeline quality gas" specifications of the natural gas pipeline
company.
* the amount of natural gas produced from the well may decline over the years to amounts that do not meet the natural gas
pipeline's minimum amounts among other reasons.

One of our solutions for oil and gas companies with stranded gas is to use the stranded gas as fuel that generates clean electricity with one of our "gas to power" solutions using gas turbine generators. Our affiliated company manufactures gas turbine gensets For as little as $785/kW (plus shipping costs and any related set-up costs) you could be generating revenues with one of our gas turbine generators!

Natural gas pipelines have transported natural gas safely, reliably, and economically to the marketplace whenever large reservoirs of natural gas are found in locations where there were existing pipelines. Even for new natural gas fields, where there are large reservoirs and supplies of natural gas, pipelines were laid to transport the natural gas to markets. However, natural gas supplies from easy to find, and easy to produce fields have been on the decline. This leaves the "stranded gas" from the fields that have not been developed due to the economics, location, or the supply was not large enough. Stranded gas wells and reservoirs are becoming increasingly attractive opportunities as we can make the stranded gas a new profit center for your company.

We can help your company turn unproductive, zero revenue stranded gas assets into economic cash flows and a new source or revenues. Stranded gas wells with a nearby electric transmission line with a minimum production of approximately 70,000 cubic feet of natural gas per day - can become a new profit center with our assistance!

Do you have a minimum of 400 mcf/day from your stranded gas well? If yes, we can install an affiliated company's gas turbine generator and generate about 1.0 MW of electricity, 24 x 7 x 365.

We can take stranded gas gas wells that have been plugged & abandoned years ago, and make them productive and profitable by taking the stranded gas and placing one or more of our power plants at or near the site - and using the stranded gas as the fuel to generate power, selling the electricity to the electric grid - thereby creating a new profit center from shut-in wells. Shut-in natural gas wells can be made productive, with new revenues from generating our gas to power solutions. Or, if there is a nearby commercial or industrial operation that needs hot water or steam, we can develop a cogeneration power plant as well, selling them the thermal energy and the power to the electric grid.

It's much easier to transport electrons long distances, than it is to transport natural gas long distances.

Alternatively, depending on the location, we may be able to place LNG equipment near Stranded Gas wells and convert the natural gas to Liquefied Natural Gas, and then transport the LNG to a nearby market.

We provide Flare Gas Recovery, Vapor Recovery Units and "Stranded Gas" solutions. We offer turnkey, "vendor-neutral" power/energy project development products and services. Unlike most companies, we are equipment supplier/vendor neutral. This means we help our clients select the best equipment for their specific application. This approach provides our customers with superior performance, decreased operating expenses and increased return on investment.

Trigeneration is the simultaneous production of three forms of energy - typically, Cooling, Heating and Power - from only one fuel input. Put another way, our trigeneration power plants produce three different types of energy for the price of one.

Trigeneration energy systems can reach overall system efficiencies of 86% to 93%. Typical "central" power plants, that do not need the heat generated from the combustion and power generation process, are only about 33% efficient.

Trigeneration Diagram & Description
Trigeneration Power Plants' Have the Highest System Efficiencies and are
About 300 % More Efficient than Typical Central Power Plants

One of our company's principal's first experience with the design and development of a trigeneration power plant was the trigeneration power plant installation at Rice University in 1987 where our trigeneration development team started out by conducting a "cogeneration" feasibility study. The EPC contractor that Rice University selected installed the trigeneration power which included a 4.0 MW Ruston gas turbine power plant, along with waste heat recovery boilers and Absorption Chillers. A "waste heat recovery boiler" captures the heat from the exhaust of the gas turbine. From there, the recovered energy was converted to chilled water - originally from (3) Hitachi Absorption Chillers - 2 were rated at 1,000 tons each, and the third Hitachi Absorption Chiller was rated at 1,500 tons. The Hitachi Absorption Chillers were replaced shortly after their installation by the EPC company. The first trigeneration plant at Rice University was so successful, they added a second 5.0 MW trigeneration plant so today, Rice University is now generating about 9.0 MW of electricity, and also producing the cooling and heating the university needs from the trigeneration plant and circulating the trigeneration energy around its campus.

Trigeneration Chart
Trigeneration's "Super-Efficiency" compared
with other competing technologies
As you can see, there is No Competition for Trigeneration!

Our trigeneration power plants are the ideal onsite power and energy solution for customers that include: Data Centers, Hospitals, Universities, Airports, Central Plants, Colleges & Universities, Dairies, Server Farms, District Heating & Cooling Plants, Food Processing Plants, Golf/Country Clubs, Government Buildings, Grocery Stores, Hotels, Manufacturing Plants, Nursing Homes, Office Buildings / Campuses, Radio Stations, Refrigerated Warehouses, Resorts, Restaurants, Schools, Server Farms, Shopping Centers, Supermarkets, Television Stations, Theatres and Military Bases.

At about 86% to 93% net system efficiency, our trigeneration power plants are about 300% more efficient at providing energy than your current electric utility. That's because the typical electric utility's power plants are only about 33% efficient - they waste 2/3 of the fuel in generating electricity in the enormous amount of waste heat energy that they exhaust through their smokestacks.

Trigeneration is defined as the simultaneous production of three energies: Cooling, Heating and Power. Our trigeneration energy systems use the same amount of fuel in producing three energies that would normally only produce just one type of energy. This means our customers that have our trigeneration power plants have significantly lower energy expenses, and a lower carbon footprint.

The Upstream Oil and Gas segment is a term that refers to the searching, drilling and production of crude oil and natural gas. The Upstream Oil and Gas segment is also known as the "exploration and production" or "E&P" segment.

The Upstream Oil and Gas segment includes; exploring for potential underground (or underwater) oil and natural gas fields (or reservoirs), drilling of exploratory wells, and operating/producing the oil and natural gas wells that "pay" with crude oil and/or natural gas.

A vapor recovery unit is a device that captures or recovers valuable volatile organic compounds and other rich gas streams that may otherwise be a significant environmental pollutant or hazardous air pollutant. A well designed vapor recovery unit can pay for itself in less than 3 years and simultaneously mitigate a company's exposure to environmental liabilities.

What is a Private Placement Offering?

A Private Placement Offering is the "offering" and sale of a company's restricted securities to prospective investors. The regulating agency for a Private Placement Offering is the Securities and Exchange Commission, and depending on the offering, one or more state regulatory agencies. Generally, a Private Placement Offering refers to the offering of securities that are not formally "advertised" to people that you do not know. A Private Placement Offering can be offered to an unlimited number of private accredited, "qualified" or "accredited" investors and a limited number of non-qualified or non-accredited investors.

A Private Placement Offering, while a security, are exempt from registration with the Securities and Exchange Commission, or "SEC" so long as the appropriate offering documentation is prepared in compliance with Federal and State regulations. These documents are usually referred to as "Private Placement Memorandums."

What is a Regulation D Offering?

Regulation D, also known as "Reg D," became effective April 15, 1982. It's one the key SEC exemptions for small businesses that want to raise money by selling its stock. It's also considered a route to taking a company public without the burden and expense of a full registration with the SEC.

Regulation D consists of six basic rules. The first three are concerned with definitions, conditions, and notification. Rule 501 covers the definitions of the various terms used in the rules. Rule 502 sets forth the conditions, limitations, and information requirements for the exemptions in rules 504, 505, and 506. Rule 503 contains the SEC notification requirements. The last three rules deal with the specifics of raising money. Rule 504 generally pertains to securities sales up to $1 million. Rule 505 applies to offerings up to $5 million (including those offerings less than $1,000,000). Rule 506 is for securities offerings with no limit or any dollar amount (including those offerings less than $5,000,000 million).

Regulation D Offerings Continued

Under the Securities Act of 1933, any offer to sell securities must either be registered with the SEC or meet an exemption. Regulation D (or Reg D) provides three exemptions from the registration requirements, allowing some smaller companies to offer and sell their securities without having to register the securities with the SEC. For more information about these exemptions, read our publications on Rules 504, 505, and 506 of Regulation D.

While companies using a Reg D exemption do not have to register their securities and usually do not have to file reports with the SEC, they must file what’s known as a "Form D" after they first sell their securities. Form D is a brief notice that includes the names and addresses of the company’s owners and stock promoters, but contains little other information about the company.

Rule 504 of Regulation D

Rule 504 of Regulation D provides an exemption from the registration requirements of the federal securities laws for some companies when they offer and sell up to $1,000,000 of their securities in any 12-month period.

A company can use this exemption so long as it is not a blank check company and does not have to file reports under the Securities Exchange Act of 1934. Also, the exemption generally does not allow companies to solicit or advertise their securities to the public, and purchasers receive "restricted" securities, meaning that they may not sell the securities without registration or an applicable exemption.

Rule 504 does allow companies to make a public offering of freely tradable securities but only if one of the following circumstances is met:

The company registers the offering exclusively in one or more states that require a publicly filed registration statement and delivery of a substantive disclosure document to investors;

A company registers and sells the offering in a state that requires registration and disclosure delivery and also sells in a state without those requirements, so long as the company delivers the disclosure documents required by the state where the company registered the offering to all purchasers (including those in the state that has no such requirements); or

The company sells exclusively according to state law exemptions that permit general solicitation and advertising, so long as the company sells only to "accredited investors."
Even if a company makes a private sale where there are no specific disclosure delivery requirements, a company should take care to provide sufficient information to investors to avoid violating the antifraud provisions of the securities laws. This means that any information a company provides to investors must be free from false or misleading statements. Similarly, a company should not exclude any information if the omission makes what is provided to investors false or misleading.

While companies using the Rule 504 exemption do not have to register their securities and usually do not have to file reports with the SEC, they must file what is known as a "Form D" after they first sell their securities. Form D is a brief notice that includes the names and addresses of the company’s owners and stock promoters, but contains little other information about the company.

Rule 505 of Regulation D

Rule 505 of Regulation D allows some companies offering their securities to have those securities exempted from the registration requirements of the federal securities laws. To qualify for this exemption, a company:

Can only offer and sell up to $5 million of its securities in any 12-month period;

May sell to an unlimited number of "accredited investors" and up to 35 other persons who do not need to satisfy the sophistication or wealth standards associated with other exemptions;

Must inform purchasers that they receive "restricted" securities, meaning that the securities cannot be sold for at least a year without registering them; and

Cannot use general solicitation or advertising to sell the securities.

Rule 505 allows companies to decide what information to give to accredited investors, so long as it does not violate the antifraud prohibitions of the federal securities laws. But companies must give non-accredited investors disclosure documents that generally are the same as those used in registered offerings. If a company provides information to accredited investors, it must make this information available to non-accredited investors as well. The company must also be available to answer questions by prospective purchasers.

Here are some specifics about the financial statement requirements applicable to this type of offering:

Financial statements need to be certified by an independent public accountant;

If a company other than a limited partnership cannot obtain audited financial statements without unreasonable effort or expense, only the company's balance sheet (to be dated within 120 days of the start of the offering) must be audited; and

Limited partnerships unable to obtain required financial statements without unreasonable effort or expense may furnish audited financial statements prepared under the federal income tax laws.
While companies using the Rule 505 exemption do not have to register their securities and usually do not have to file reports with the SEC, they must file what is known as a "Form D" after they first sell their securities. Form D is a brief notice that includes the names and addresses of the company’s owners and stock promoters, but contains little other information about the company.

Rule 506 of Regulation D

Rule 506 of Regulation D is considered a "safe harbor" for the private offering exemption of Section 4(2) of the Securities Act. Companies using the Rule 506 exemption can raise an unlimited amount of money. A company can be assured it is within the Section 4(2) exemption by satisfying the following standards:

The company cannot use general solicitation or advertising to market the securities;

The company may sell its securities to an unlimited number of "accredited investors" and up to 35 other purchases. Unlike Rule 505, all non-accredited investors, either alone or with a purchaser representative, must be sophisticated—that is, they must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment;

Companies must decide what information to give to accredited investors, so long as it does not violate the antifraud prohibitions of the federal securities laws. But companies must give non-accredited investors disclosure documents that are generally the same as those used in registered offerings. If a company provides information to accredited investors, it must make this information available to non-accredited investors as well;

The company must be available to answer questions by prospective purchasers;

Financial statement requirements are the same as for Rule 505; and

Purchasers receive "restricted" securities, meaning that the securities cannot be sold for at least a year without registering them. While companies using the Rule 506 exemption do not have to register their securities and usually do not have to file reports with the SEC, they must file what is known as a "Form D" after they first sell their securities. Form D is a brief notice that includes the names and addresses of the company’s owners and stock promoters, but contains little other information about the company.

The purpose of an Initial Public Offering is to generate capital for a business that decides to take the route of equity financing.

What is Equity Financing?

Companies seek "equity financing" when a company uses its assets or ownership in the company to get cash they need for expansion or continued growth.

When a company sells its stock through an Initial Public Offering it is, in essence, selling partial ownership in the company.

One downside to this type of financing is that the company loses some of its control when shares are sold to the public.

In order to complete a successful Initial Public Offering, an "underwriter" is used to facilitate the process as well as to promote the company's stock to investors and eventually to the public. Another term for an underwriter is an investment bank.

Midstream Assets

Acquisitions * Capital * Engineering * Finance
Investment * Project Development Services

www.MidstreamAssets.com

info@MidstreamAssets.com