American International Petroleum Corporation (fka AIPN)

[Begesh]

St. Marks news out today

St. Marks Refinery Reaches Agreement for Disposition of Tankage At St Marks, Florida Facility

NEW YORK, Jul 1, 2002 (BUSINESS WIRE) -- St. Marks Refinery, Inc. (SMR),
announced today it has reached an agreement with the Florida Department of
Environmental Protection (DEP) regarding the disposition of petroleum product
tankage at its facility in St. Marks, Florida.

The SMR facility is undergoing the first steps of remediation by the DEP for the
clean up of petroleum contamination at the site. SMR has been presented with
documentation recently made available by the DEP that the site contains levels
of dioxin contamination here-to-fore unknown by either the DEP or SMR. SMR has
relinquished its rights to storage tanks and equipment in the area identified by
the DEP as containing dioxin above regulatory levels. This decision will allow
the DEP to continue remediation activities unimpeded.

SMR maintains its commitment to act in good faith to assist the DEP in the clean
up of the site. SMR has no knowledge what so ever of activities at the facility
that could have caused dioxin contamination, and can only surmise that such
conditions predated SMR's acquisition of the facility in late 1992. SMR received
a specific waiver of liability from the DEP for preexisting conditions prior to
its acquisition, and is currently seeking confirmation of the validity of that
waiver in Wakulla County, Florida circuit court.

SMR continues to work with the DEP in order to maintain the portion of the
facility to be utilized for asphalt distribution. The storage tankage associated
with the asphalt distribution area is exempt from state regulation, and is in
compliance with applicable United States Coast Guard regulations.

It is estimated that thorough contamination testing by the DEP of the asphalt
distribution area shall commence by no later than mid-July. A final
determination regarding the status for asphalt distribution activities at the
facility shall be made upon receipt of DEP documentation by SMR of the test
results of that area.

SMR is a wholly owned subsidiary of American International Petroleum Corporation
(OTC BB: AIPN).

Statements herein may be identified as forward-looking for purposes of safe
harbor provisions under Section 21E of the Securities and Exchange Commission
Act of 1934. Such statements relating to American International Petroleum
Corporation, and SMR's, business, including those specific to this press
release, such as efforts to utilize SMR for asphalt distribution; receipt of
further DEP test results favorable to asphalt activities; and all future
business of the Company, including SMR, are subject to risks and uncertainties
that could cause actual results to differ materially from those statements and
other risks and factors, identified in the Company's SEC filings.


CONTACT: St. Marks Refinery
Michael Dodge, 212/688-3333

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KEYWORD: NEW YORK FLORIDA
INDUSTRY KEYWORD: ENERGY
OIL/GAS
SOURCE:
St.
Marks
Refinery