Hi sharky:

On the other hand page 33 of the presentation shows that 33% of the MRC refinery production is asphalt, much of which is being produced right now and being put into storage for shipping at the end of April to companies which paid over $100 US per barrel and didn't take delivery of it in 2009 due to the shortened road building season due to the weather. The incresed infrastructure spending by the federal and state governments for road building is starting to go through now finally. Jet fuel represents 6% of the total and jet fuel always has a high price with much of it being sold to the US airforce for the air base in Great Falls, Montana; and diesel accounts for 19% of MRC's total production and the ultra low sulphur diesel that the MRC refinery reconverted to produce last September will be in demand. The MRC refinery is a boutique refinery that produces special products which are sold in Montana, Alberta, and the surrounding states and has a ready market; whereas most of the huge refineries like Chevron's do not produce asphalt at all anymore. This is why the MRC refinery is "special". It is small and highly specialized. The chart on page 33 shows that 38% of MRC's production is gasoline and this may be where the product value drops a bit with the price of gasoline going down due to a glut on the market however if Montana gets a lot of its gas from the refinery then this won't be much of a problem locally there. As for the other 4% of MRC's production, Connacher buys a percentage of its diluent from MRC and diluent is still going for a very high price. While we must wait for the Q-1 report in March obviously to learn the truth, MRC's profit for Q-1 may not be so bad after all. IMHO I think that the asphalt contracts and the stock piling of asphalt may help us to get through unless its all cash and carry in Q-2 for the asphalt.

Best Wishes; Scott