Site

On February 8th, 2019, Meridian entered into an option agreement establishing site control on a 1,280-acre parcel of land just north of the community of Kermit in Winkler County, Texas, in the heart of the Permian Basin, where Meridian intends to build and operate a second full-conversion crude oil refinery (“Permian Refinery”). Based on a comprehensive review of various siting issues, Meridian has allowed its option on this site to expire while renegotiating its terms with the master lease holder, and at the same time is evaluating potentially more viable alternative sites in the area. The Permian Refinery would have a throughput capacity of approximately 60,000 bpd and is expected to be permitted as a Synthetic Minor Source, the same air quality permitting classification as Davis. The Company anticipates that most of the key project strategies and commercial arrangements for Davis, such as for engineering and construction, crude supply and offtake will be replicated.