1400 Olin Rd
Beaumont, Texas

77705-5754

- Chemtrade currently expects the plant to be back online before the end of October.
- Chemtrade has arrangements in place ensuring that its customers will remain supplied with sulphuric acid and spent acid regeneration services through the duration of the repairs.
- Chemtrade carries both property and business interruption insurance.  While the amounts of any recoveries under these insurance policies cannot be determined until the investigation is complete and repairs are made, Chemtrade expects to recover substantially all of its costs and lost profits.
- The Fund believes that the incident at the Beaumont plant will not impact its ability to sustain its monthly distributions.

Mark Davis, President and Chief Executive Officer of Chemtrade, said, "The investigation team now believes that the source of the fire was in a newly installed piece of equipment. From our customers' perspective, we have ensured that this incident will not affect them and that we will continue to provide the products and services they require." Mr. Davis added, "The interruption to Beaumont's production is disappointing since the plant had been operating very well since completing a significant capital re-investment program. We remain committed to the future of our Beaumont plant. We will repair the damage quickly, and continue to invest in the plant's reliability and efficiency."

May 18, 2010 - Chemtrade Logistics continues to investigate possible causes of a weekend fire that indefinitely closed the plant.  Saturday's fire began during "startup" -- a period when workers bring the plant back online -- after a power outage. It's a critical span of time for any plant, industry experts say.  Chemtrade's facility, at 1400 Olin Road, caught fire about 2:30 a.m. after strong storms knocked out power to the area, reports show.  None of the workers were injured during the fire, which Beaumont firefighters confined to the sulphur dioxide unit before snuffing out the flames by 3:10 a.m., reports show.  Officials with Toronto based Chemtrade and insurance adjusters were inspecting the plant on Monday, an initial step in the company's internal investigation into what led to the fire, company vice president and chief financial officer Rohit Bhardwaj said.  Bhardwaj added it could be some time before the exact cause is determined.  Power outages are not uncommon at the Beaumont facility and are usually tied to severe weather conditions, Bhardwaj said.  In general, power fluctuations can cause abrupt shutdowns and startups.   Startups, or the periods when a chemical plant is being revved back into action, is among the most delicate periods in plant operations, said Ted Lemoff with the National Fire Protection Association.  "The plants are designed really for a 'steady-state' operation," Lemoff said. "You're at greatest risk when things are operating unusually."   Jerry Bradshaw, a senior lecturer with Texas A&M University's chemical engineering department with 29 years of industry experience, likened the difference between start-up and "steady-state" operations to driving along a highway on cruise control compared to stop-and-go traffic.  "There's no question that startups and shutdowns are when things are most likely to happen because you have so many things that are not in control or where you want them to be," Bradshaw said, speaking generally of plant operations.   Chemtrade's Beaumont facility manufactures sulfuric acid for use by plants when refining oil. The company also cleans contaminants from used sulfuric acid for re-use.  Bhardwaj said there was no indication when the facility would re-open. The company will continue paying the 70 to 80 workers from the site during the shutdown.

May 17, 2010 - The Chemtrade Logistics sulphuric acid plant in Beaumont, Texas, remained shut down following a weekend fire, an executive with the company said on Monday.  Chemtrade was investigating the cause of the fire, and it did not know when operations could resume, said Rohit Bhardwaj, chief financial officer.  "We really don't know a lot at this stage," Bhardwaj said.  In regards to deliveries, Chemtrade was addressing them on a customer-by-customer basis, he said.  While Chemtrade has other plants and different inventory locations, the possible effect on deliveries was still unknown, Bhardwaj said.  "It's really a question of how we can logistically make this all happen," he said.  The fire started at about 2:30 hours Beaumont time (7:30 GMT) on Saturday, when the plant was being restarted after a weather-related power outage, Chemtrade said.  Following the fire, the plant was secured and safely shut down, the company said. There were no injuries and no off-site environmental releases.  The fire was the second major accident to recently occur at the plant. In August 2008, there was an explosion at the plant’s furnace and the facility was down until January 2009.  At the time, Chemtrade made arrangements to ensure that customers' operations were not disrupted while the Beaumont plant was off line.