Plastic2Oil Inc (PTOI)

[Imperial Whazoo]

Let me point something out about the differing economics of New York & Florida.

Apparently, your basic concern is with how HTF changes the economics of running the machines in a commercial plant environment in New York.

OK. Fine with me.

However, the problem solved in the Florida RKT plant is not the same as the problem solved in New York. The economics differ a lot, to say the least, LOL.

Now let me start by saying that, IMHO, the main reason the Florida project has been stalled has been that JBII is contractually bound to bear the expenses of the RKT start-up/build-out. Simply put, the legal fights that have been JBII's constant companion have made financing the RKT site untenable.

I think that the main avenues of attack employed by the enemies of JBII have been legal entanglements.

The chief reason, IMHO, the chart of JBII has been such an underperformer is the uncertainty injected into the matter by the constant entanglements in legal fights. I further think that freeing JBII from the last remaining legal entanglement, that of the all-but-settled bogus SEC complaint, will free the JBII to build the RKT site in Florida.

So, the hold up has been the costs of such things as legal bills and the undefined costs for disgourgement, penalties, and fines. Thats my opinion.

Now, back to the HTF matter.

As you point out, the HTF issue clouds the economics in NY because it implies there are technical problems. The costs of solving these issues is unknown.

These unknown costs are on top of the costs imposed by the DEC that require the plastic to be separated, handled specially, shipped specially, and databased on both the shipping and receiving ends.

To pass muster in New York, plastic to be processed at the plant has these costs as overhead: They have to separate it, handle it, ship it, and database it. And now they have HTF in the equation.

However, why does having to bag the plastic, after it has been separated, matter in Florida?

Why does having to truck it a certain way matter in Florida?

Or why does databasing at shipping and receiving matter down there?

After all, none of this is going to be needed in a plant like the Florida RKT plant, because it is not in need of being separated or bagged or databased or shipped.

At the RKT site, the plastic ragger tails come from the plant or are pulled out of existing landfills. Separation, bagging, shipping and databasing are not variables in the Florida equation.

As such, even with HTF in the equation, the economic viability of the Florida site is not dictated by the variables in the cost equation relevant in New York.

The operation in Florida is driven by economics imposed by existing handling, landfill, and regulatory costs.

I think the economics of the RKT Florida site are favorablke to putting the machines in place down there. Thats what I think.

And my opinion is that the hold-up in putting the machines in Florida was that JBII was unable to commit to the project in Florida for economic reasons. They had legal battles to fight and these imposed uncertain costs on the company that made starting in Florida impossible. The legal issues had to be dealt with first.

Bear in mind that the RKT deal was roundly criticized because JBII took on itself the costs of putting the site together. That meant that JBII had to raise money to go forward.

The costs of legal bills, unending legal entanglement, and the possible danger of disgourgement (plus penalties and fines) held JBII back from spending the money necessary to develop the RKT sites.

Thus, IMHO, the key issue for JBII is to finalize the SEC settlement.

The costs of HTF may or may not make commercial operation in New York viable, but in Florida, where the plastic does not need to be separated, handled, shipped, and databased, the RKT site will be viable.

Very much so.

Thats how I see it.

Hope this helps.

Imperial Whazoo