Selected ExxonMobil PAO based lubricants on allocation effective October 1, 2008.

ExxonMobil marketers (and direct served customers) were advised that allocation of Mobil 1 lubricants will take effect October 1 as a result of Hurricane Ike causing significant disruptions to supply lines to ExxonMobil Chemical's (EMC) Beaumont, TX plant. This plant produces Poly Alpha Olefin (PAO) and is the primary supplier of PAO to ExxonMobil Lubricants and Specialties (EMLS). These disruptions have reportedly forced EMC to allocate sales of PAO to EMLS, and in turn, for EMLS to place its customers on allocation of selected lubricants containing PAO.

According to marketers, the allocation is expected to last several months and impact available of most Mobil 1 lubricants. Allocations are said to range from 15% to 100% based on lubricant type and package.

...and in a real life example of what this allocation means to customers, take a look at the retail shelves at lunch today.

American Synthol filed a Chapter 11 petition in the Northern District of Georgia last week after what is described as a dispute over payments for lubricants manufactured by I.S.E.L. for Snythol.

Tracks of the dispute are seen in the breach of contract suit I.S.E.L. filed against American Synthol in the Florida Middle District Court on September 10, 2008. According to the filing, I.S.E.L. seeks $75,000 for what it says is Synthol's breach of contract.

According to a court document filed by I.S.E.L., American Synthol's largest creditor is I.S.E.L. Inc. of Jacksonville, is owed about $565,000.

American Synthol, of Marietta, Ga., has been in operation since 1983. The company produces high-performance and specialty lubricants under the Amerilube brand name. In addition, the company is a supplier of private label lubricants.

I.S.E.L., Inc. is a custom contract manufacturer and packager of lubricants. The company is located in Jacksonville Florida.

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