“What Is Expected From Legal Counsel in Changing Times”

Gary R. Heminger President

Marathon Petroleum CompanyCorporate Law Leadership Forum

April 22, 2009

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Global Operations

Exploration

Production

Exploration/Production

Integrated Gas

Refineries

Oil Sands Mining

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The Reach and Scope of Marathon

The few, the proud, the in-house counsel

35 Attorneys

26,000 Employees

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Challenges to Legal CounselProduct Liability

Price Gouging

Protection of Intellectual Property

New Regulations Constraining Advocacy Efforts

Ethics Leadership

Sarbanes Oxley Compliance

Guidance on Contracts and Legislative Initiatives

Anti-trust

Mergers and Acquisitions

Environmental Law

Personal Injury

Medical Monitoring

PMPA and Marketing

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The key expectation –

“Understand the business!”

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Industry Jobs

Direct Industry Total Job Chain

Oil:1.84 million

Auto:Approximately

3 million

Oil:Approximately

5.9 million

Auto:1.1 million

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New Projects, New Jobs, New Energy

Garyville Major Expansion Detroit Heavy Oil Upgrade Project

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Cost of Delay

Additional Adverse Results

Deferred benefits

Time value of investment dollar

Competitor advantage

Typical Cost of Project Delay

Sal

es

Time

With delay

Without delay

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Our Industry is an Industry of Price Takers

Source: NYMEX (WTI crude oil) and AAA (gasoline a diesel)

Threat of Iraq Embargo

Iraq War OPEC Cuts

Hurricane Katrina

Non-OPEC disruptions

Open interest contracts soar

Iran tests missiles

Hurricane Ike

Events drive price

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Annual Price and Margin Sensitivities$ Millions (After Tax)

Refined products wholesale margin sensitivity(per penny a gallon change) $137

Speedway SuperAmerica light product margin(per penny a gallon change) $21

LLS 6-3-2-1 crack spread(per dollar a barrel change) ~$280

Sweet/Sour Oil Cost Differential(per dollar a barrel) ~$110

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Price Discovery

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The Popular View of Price Gouging

“Florida fields hundreds of complaints”

“Hot line established to report price gouging”

“Attorney General to crack down on price gouging”

Media Headlines

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True or False: Cost is Knowable

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USTs and $411 Million

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Who Pays for Cap-and Trade?

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Emissions Comparison

Source: T.J. McCann & Associates

Production Transportation to Markets Refining

Refining Byproducts End Use Consumption

Kg

CO

2e/

Ba

rrel

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Structure of Success

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QUALITY EFFICIENCYPRODUCTIVITY

Business Understanding and Business Focus