(CNO) DecisionLink Finalizes Agreement With Cornerstone Propane L.P.
LAS VEGAS--(BUSINESS WIRE)--Jan. 23, 2001--DecisionLink Inc. (OTCBB:DLNK), announced that it has executed an agreement with NCJV LLC (a partnership which includes as one of its partners Cornerstone Propane L.P. (NYSE:CNO) to form TankSat LLC.
Under the terms of the agreement, DecisonLink is a 50% partner in the joint venture company with NCJV LLC.
TankSat's business model is the worldwide marketing and sale of propane monitoring products to distribution companies servicing residential and commercial propane customers. TankSat's technology measures the liquid level of propane tanks and through a secured Web site, delivers the corresponding tank data to the distributor using the latest in satellite technology.
TankSat owns, as part of this agreement, a comprehensive back office software package known as Resource Management Software (RMS), for this application. It will be marketed in conjunction with the TankSat propane monitoring service as an integrated system for use in delivery dispatch, inventory control, and operational management.
The RMS software system is expected to create a dynamic change to the industry's current method of daily operational planning and inventory control.
As part of the agreement and upon successful completion of current field testing, Cornerstone is to deploy 6,000 units of the TankSat propane monitoring system through a retail service center located in California. The further implementation of its 450,000 plus nation-wide customer base is expected to start once final equipment, communication, and pricing has been agreed upon.
TankSat estimates the total North American market for propane tanks to be approximately 15 million units and the international market to be in excess of 50 million units. TankSat will earn revenues from the sale of monitoring hardware and from a monthly service fee for communicating tank data.
In addition, TankSat plans to earn additional and continuing monthly revenues by providing its specialized RMS software as an operations management tool. It is expected that residential monitoring and communication hardware systems will be sold at prices starting under $200 per unit and bulk storage units starting at prices under $2,000 per unit, depending upon geographic location and the customer's requirements.
Monthly fees for residential tanks will depend on the frequency of reporting and the auxiliary services provided. The monthly fees will range from approximately $3 per installation to $10 or more per installation. Commercial applications will bring higher recurring monthly fees and revenues and will depend on frequency of reports that could vary seasonally.
David S. Peachey, president of DecisionLink Inc., said, "We are delighted to have formalized our agreement with Cornerstone and its partners. These companies are highly respected players in their fields and bring a depth of experience, management and credibility to TankSat.
"We are already seeing the benefits of this partnership through world wide requests for pilot projects for this new and exciting technology. The TankSat technology is new and can change the way the propane industry operates on a day-to-day basis," stated Peachey.
Keith Baxter, CEO of Cornerstone Propane L.P., said, "One of the top priorities of our industry is the remote monitoring of tanks to improve customer service, control inventory, and reduce delivery costs. We believe TankSat will do this for both the North American and international propane community. We plan to share this innovative technology with other propane companies, to accelerate the adoption of this fantastic product."
Jesse Leatherman, CEO of TankSat Solutions LLC, said, "The TankSat product and solution is destined to revolutionize the propane industry with breakthrough technology that will generate revenue and lower operating costs for the propane retailer while improving customer service levels. With the implementation of the TankSat product, it is estimated that delivery costs will decrease by more than 30%.
"The implementation of the TankSat application will allow each propane business to become very efficient in delivering propane." For more information on TankSat, visit www.tanksat.com.
DecisionLink's Communications Group has developed a wide range of products for monitoring of propane and fuel oil tank levels, pipeline compressors, and many other multi-user remote asset monitoring applications for low-cost volume use of satellite communication pathways and the Internet.
DecisionLink's FCI Environmental Group has introduced small, low-cost sensor and communication products that use satellite communications and the Internet as the backbone for data transfer and control in the pipeline leak detection, aboveground storage tank monitoring, oil production, water quality monitoring and industrial wastewater compliance monitoring and control markets. For more on DecisionLink, visit www.decisionlinkinc.com.
Cornerstone Propane Partners L.P. is a master limited partnership with annual sales of more than $2 billion. The Partnership is the nation's fifth largest retail propane marketer serving more than 480,000 customers with annual sales of approximately 300 million retail gallons, doing business in 34 states through 299 customer service centers. Its North American energy solutions service division, Coast Energy Group (CEG), supplies, purchases, processes and markets more than 48,000 barrels per day of natural gas liquids to resellers and major end users. CEG also sells approximately 1.0 Bcf per day of natural gas and 100,000 barrels per day of crude oil in the United States and Canada. Further Information about Cornerstone is available on the Internet at cornerstonepropane.com. |
