Principles and Practices of Air Pollution Control and Analysis 9789389307740

Table of contents :
Cover
Half title
Title
Copyright
Preface
Contents
Part I: Introduction to Air Pollution
Chapter 1: Air Pollution: A Global Phenomenon
1.1 History of Air Pollution
1.2 The Atmosphere
1.3 Definition of Air Pollution
1.4 Classification of Air Pollutants
1.5 Source Classification
1.6 Source Grouping
1.7 Emission Sources of Pollutants
1.8 Population, Energy and Environment
1.9 Management of Fly Ash
1.10 Impact of Coal Mining
1.11 Environmental Problems of Altemate Energy Production
Questions
References
Chapter 2: Gaseous Pollutants in the Air
2.1 Units and Measurements
2.2 Carbon Dioxide
2.3 Carbon Monoxide
2.4 Hydrocarbons
2.5 Sulphur Dioxide
2.6 Hydrogen Sulphide and Mercaptans
2.7 Nitrogen Oxides
2.8 Ammonia
2.9 Organic Nitrogen Compounds
2.10 Ozone and Oxidants
2.11 Fluorine and Hydrogen Fluoride
2.12 Behaviour and Fate of Air Pollutants
2.13 Interaction of Carbon Compounds in the Atmosphere
2.14 Behaviour and Fate of Sulphur Compounds
2.15 Behaviour and Fate ofNitrogen Compounds and Ozone
Questions
References
Chapter 3: Physico-chemical Properties of Gases and Solutions
3.1 Properties of Gases
3.2 Properties of Solutions
3.3 Particles and Small Droplets
3.4 Chemical Thermodynamics
3.5 Principles of Chemical Kinetics
3.6 Absorption of Radiation
3.7 Physico-chemical Aspects of Pollution
3.8 Molecular Diffusion
3.9 Eddy Dispersion
3.10 The Box Model
3.11 Cloud Formation
Questions
References
Chapter 4: Meteorological Aspects of Air Pollution
4.1 Atmospheric Classification
4.2 Atmospheric Air Circulation
4.3 Meteorological Parameters
4.4 Wind Direction and Speed
4.5 Ground Level Wind Pattems
4.6 Pressure - Altitude Relationship
4.7 Temperature - Altitude Relationship
4.8 Atmospheric Stability
4.9 Mixing Height
4.10 Precipitation
4.11 Humidity
4.12 Solar Radiation
4.13 Utility of Meteorological Factors
4.14 Measurement of Meteorological Parameters
4.15 Meteorological Modelling
Questions
References
Chapter 5: Characteristics of Stack Plumes
5.1 Plume Behaviour
5.2 Plume Geometry
5.3 Dispersion of Air Pollutants
5.4 The Gaussian Plume Model
5.5 Estimation of Stack Height
5.6 Estimation of Buoyant Plume Rise
Questions
References
Part II: Control Technology
Chapter 6: Sampling and Measurement of Air Pollution
6.1 Terminology
6.2 Theory of Sampling
6.3 Techniques of Sampling
6.4 Types of Environmental Sampling
6.5 Air Sampling Equipment
6.6 Metering Devices
6.7 Air Quantity Measurement
6.8 Sampling Trains
6.9 Aerosol Sampling
6.10 Sampling Gaseous Pollutants
6.11 Grab Sampling
6.12 High Volume Samplers for Particulates
6.13 Tape Sampling
6.14 Stack Sampling
6.15 Particulate Sampling from Stacks
6.16 Stack Gas Sampling
6.17 Procedure for Particulate Matter Sampling
Questions
References
Chapter 7: Particulate Control Technologies
7.1 Particulate Behaviour in Exhausts
7.2 Particulate Emission Control
7.3 Gravitational Settling Chambers
7.4 Cyclone Separators
7.5 Gas Filtration
7.6 Electrostatic Precipitators
7.7 Particulate Removal by Scrubbing
Questions
References
Chapter 8: Absorption of Gaseous Emissions
8.1 Absorption in Liquids
8.2 Theory of Gas Absorption
8.3 Scrubbing Medium
8.4 Gas-Liquid Absorption Equipment
8.5 Design Considerations
8.6 Tower Diameter
8.7 Tower Height
8.8 Applications
Questions
References
Chapter 9: Adsorption of Gaseous Pollutants
9.1 Adsorption Processes
9.2 Adsorption Systems
9.3 Theoretical Considerations
9.4 Adsorption Isotherms
9.5 Adsorption Equipment
9.6 Adsorbents
9.7 Industrial Applications
Questions
References
Chapter 10: Air Pollution Control by Combustion
10.1 Theoretical Principles
10.2 Direct Combustion or Flares
10.3 Thermal Incineration
10.4 The Technological Keys to Performance Levels
10.5 Liquid Injection Incinerators
10.6 Rotary Kilns
10.7 Fluidized Bed Incineration
10.8 Hearth Incinerators
10.9 Flameless Thermal Oxidation
10.10 Catalytic Combustion
Questions
References
Chapter 11: Control of Sulphur Dioxide Emissions
11.1 Extraction of Sulphur from Fuels
11.2 Coal Gasification
11.3 Fluidized Bed Combustion
11.4 Flue Gas Desulphurization
11.5 Wet Scrubbing Technologies
11.6 Semi Dry Systems
11.7 Other Processes
11.8 Recent Advances
Questions
References
Chapter 12: Emission Control of Nitrogen Oxides
12.1 Conversion of Organic Nitrogen
12.2 Theoretical Aspects ofNitric Oxide Formation
12.3 Modification of the Combustion Process
12.4 Effluent Gas Treatment
12.5 Adsorption on Solids
12.6 Catalytic Decomposition
12.7 Selective Catalytic Reduction of NOx
Questions
References
Chapter 13: Control of Organic Emission
13.1 Environmental Significance of Organic Compounds
13.2 Volatile Organic Compounds (VOCs)
13.3 Characteristics of Odours
13.4 Control of Volatile Sulphur Compounds (VSCs)
13.5 Odour Control
13.6 Non-point Source Odours
13.7 Odour Control Regulations
Questions
References
Part III: Current Topics
Chapter 14: Indoor Air Pollution
14.1 Combustion Sources
14.2 Cigarette Smoke as an Indoor Pollutant
14.3 Indoor Air Quality
14.4 Indoor Air Quality Model
Questions
References
Chapter 15: Automobile Emission Control
15.1 Transport Scenario in India
15.2 Internal Combustion Engines
15.3 Air Pollutants from Petrol Engines
15.4 Nature of Diesel Emissions
15.5 Reactivity and Carcinogenicity of HC Emissions
15.6 Control Technologies in Spark Ignition Engines
15.7 Control Technologies for Diesel Engines
15.8 Particulate Matter in Diesel Engines
15.9 Alternative Fuels as Pollution Reducers
15.10 Automobile Pollution in India
Questions
References
Chapter 16: Global Climate Change
16.1 Global Warming
16.2 Global Temperature Models
16.3 The Greenhouse Effect
16.4 Planetary Energy Distributions
16.5 Climate Change Variability
16.6 The Role and Importance of Carbon Dioxide in Global Warming
16.7 Other Greenhouse Gases
16.8 Implications of Global Warming
16.9 Indicators of Global Warming
16.10 Global Perspectives on Greenhouse Effect
Questions
References
Chapter 17: Ozone and Chlorofluorocarbons in the Stratosphere
17.1 Ozone in the Environment
17.2 Destruction of Stratospheric Ozone
17.3 Chlorofluorocarbons
17.4 CFCs in the Environment
17.5 Future Atmospheric Concentrations of CFCs
17.6 Mechanism of CFC Degradation
17.7 Effect of Greenhouse Gases on Ozone Concentration
17.8 Other Halogen Compounds
17.9 Probing the Ozone Layer
17.10 Effect of Ozone Depletion
17.11 Protection of Ozone Layer
Questions
References
Chapter 18: Acid Rain
18.1 Sources of Acid Rain
18.2 The Chemistry of Acid Rain
18.3 Reactions in the Droplets
18.4 Oxidation of N02 to Nitric Acid
18.5 Effect of Ammonia
18.6 Acid Deposition Processes
18.7 Volatile Organic Components
18.8 Other Chemicals
18.9 Hydrogen Sulphide
18.10 Acid Fog
18.11 Acid Rain - Global Scenario
18.12 Acid Rain in India
18.13 Effects of Acid Rain
18.14 Remedial Measures
Questions
References
Chapter 19: Noise Pollution
19.1 Nature of Sound
19.2 Sound Pressure
19.3 Sound Power
19.4 Sound Intensity
19.5 Loudness
19.6 Sound Propagation in Air
19.7 Indoor Sound Propagation
19.8 Measurement of Sound
19.9 Sources of Noise in the Environment
19.10 Industrial Noise Control
19.11 Effects of Noise on Humans
19.12 Noise Pollution in India
19.13 Noise Control Criteria
Questions
References
Part IV: Air Pollution Management
Chapter 20: Magnitude and Effects of Air Pollution
20.1 Environment and Health
20.2 Particulates
20.3 Sulphur Dioxide
20.4 Carbon Monoxide
20.5 Hydrocarbons and Organics
20.6 Hydrogen Sulphide
20.7 Ammonia
20.8 Nitrogen Oxides
20.9 Fluorides
20.10 Ozone
20.11 Secondary Air Pollutants
20.12 Lead
20.13 Arsenic
20.14 Cadmium
20.15 Nickel
20.16 Mercury
20.17 Beryllium
20.18 Asbestos
20.19 Other Toxic Substances
Questions
References
Chapter 21: Air Pollution in India and the World
21.1 Meuse Valley, 1930
21.2 London, 1952
21.3 Bhopal Gas Tragedy, 1984
21.4 Seveso Accident, 1976
21.5 The Chemobyl Nuclear Disaster, 1986
21.6 The Gokak Accident, 2007
21.7 Air Pollution: Global Scenario
21.8 Air Pollution in India
21.9 Future of Air Pollution Control
Questions
References
Chapter 22: Air Quality: Emission Standards, Legislation and Administration
22.1 Air Pollution Control Statutes
22.2 Air Pollution Standards
22.3 Air Quality Criteria
22.4 The Air Act
22.5 Domestic and Other Sources
22.6 Significance of Air Pollution Control Areas
22.7 Emission Standards
22.8 Penal ProvisionsoftheAct
22.9 Salient Features of the Air (Prevention and Control of Pollution) Act, 1981
22.10 The Environment (Protection) Act 1986
22.11 Conclusion
Questions
References
Chapter 23: Air Pollution Indices and Surveys
23.1 Air Pollution Index
23.2 The Pollution Standards Index
23.3 Air Pollution Survey
23.4 Air Pollution Impact Assessment
Questions
References
Part V: Analytical Aspects
Chapter 24: Techniques for the Analysis of Air Pollutants
24.1 Gravimetrie Analysis
24.2 Volumetrie Analysis
24.3 Spectrophotometric Analysis
24.4 Turbidimetry and Nephelometry
24.5 Fluorimetry
24.6 Atomic Absorption Spectrometry
24.7 Inductively Coupled Plasma-Atomic Emission Spectrometry
24.8 Infrared Spectroscopy
24.9 Gas Chromatography
24.10 High Pressure Liquid Chromatography (HPLC)
24.11 Electrochemical Techniques
24.12 Polarography
24.13 Neutron Activation Analysis
24.14 Other Techniques
Questions
References
Chapter 25: Chemical Analysis of Selected Air Pollutants
25.1 Ammonia in Air
25.2 Hydrogen Sulphide in Air
25.3 Sulphuric Acid Mist in Air
25.4 Free Chlorine in Air
25.5 Carbon Disulphide in Air
25.6 Total Crystalline Silica (Quartz) in Air
25.7 Colorimetric Method for Free Silica Determination
25.8 Methanol
25.9 Aromatic Hydrocarbons in Air
25.10 Acrylonitrile in Air
25.11 Formaldehyde
Appendix 1: Conversionfrom ppm to pg/m3
Appendix 2: Physical Properties of Fluids
Appendix 3: ThresholdLimit Values (TLV) for Some Common pollutants
Appendix 4: Useful Conversion Factors
Appendix 5: Conversion Factors
Appendix 6: National Air Quality Monitoring Programme (NAMP)
Appendix 7: National Air Quality Monitoring Programme (NAMP) Düring 1994-2004 (lOyears) in Bangalore City
Appendix 8: Environmental Standards: Vehicular Exhaust
Appendix 9: Summary of the Revised WHO Air Quality Guidelines for Europe
Appendix 10: Ambient Noise Standards Schedule
Appendix 11: List of Indian Standards Relating to Air Pollution
Appendix 12: Classification of Industries
Notations
Index
Backcover

Citation preview

TM

Principles and Practices of Air Pollution Control and Analysis is a ready reference book for scientists and technologists. The subject matter has been presented in five sections spread into 25 chapters. The first section introduces the reader to air pollution and the second section deals with the current air pollution control technologies. The third section is informative in character and presents environmental issues related to air pollution, such as acid rain, global climate change, CFCs, ozone layer, etc. The fourth section presents management aspects of air pollution and the last section is dedicated to instrumentation and chemical analysis. The text has been structured to offer a clear understanding of the subject matter with illustrated examples. The book provides an essential reading and an insight into the chemistry of air pollution for the undergraduate and postgraduate students of Environmental Science and Engineering. It will also be of interest for professionals and consultants working in the area of air pollution control. J.R. Mudakavi completed M.Sc. in Chemistry from IIT Bombay in 1972. Later, he joined IIT Madras for DIIT program in Instrumentation and completed his Ph.D. on the 'Separation and Determination of Trace Quantities of Platinum and Palladium' in 1977. At present, he is Principal Research Scientist, Dept. of Chemical Engineering, Indian Institute of Science, Bengaluru. From 1986 to 1988, he was a Visiting Scientist in Perkin Elmer Corporation Ltd., Ueberlingen, West Germany, where he specialised on the Matrix Modification, Graphite Furance Atomic Absorption Spectrometry and Hydride Generation AAS. His current research interests include environmental pollution control, modern instrumental methods of analysis, trace and ultra trace determination of metals and organics, process development and activated carbon fibres. Dr. Mudakavi has guided one Ph.D and 10 M.E., M.Sc. students. He has 30 years’ research experience in these areas and published more than 75 papers in national and international journals, and chaired several sessions in various seminars. He has been conferred upon the Best Engineering Material Development Award for the development of activated carbon fabric for use in breathing masks. He has undertaken a number of consultancy projects with WIDIA, HEG, IIC, TANFAC, KSPCB, BWSSB, National Bureau of Accreditation, UGC and DST.

978-93-89307-74-0

Distance

` 525/-

Distributed by: 9 789389 307740

TM

3ULQFLSOHV DQG 3UDFWLFHV RI $LU3ROOXWLRQ &RQWURODQG$QDO\VLV

3ULQFLSOHV DQG 3UDFWLFHV RI $LU3ROOXWLRQ &RQWURODQG$QDO\VLV

3ULQFLSOHV DQG 3UDFWLFHV RI $LU3ROOXWLRQ &RQWURODQG$QDO\VLV

3ULQFLSOHV DQG 3UDFWLFHV RI $LU3ROOXWLRQ &RQWURODQG$QDO\VLV

3ULQFLSOHVDQG3UDFWLFHVRI $LU3ROOXWLRQ &RQWURODQG$QDO\VLV

3ULQFLSOHVDQG3UDFWLFHVRI $LU3ROOXWLRQ &RQWURODQG$QDO\VLV

- 5 0XGDNDYL

- 5 0XGDNDYL

'HSWRI&KHPLFDO(QJLQHHULQJ ,QGLDQ,QVWLWXWHRI6FLHQFH %DQJDORUH

'HSWRI&KHPLFDO(QJLQHHULQJ ,QGLDQ,QVWLWXWHRI6FLHQFH %DQJDORUH

I.K. International Publishing House Pvt. Ltd.

I.K. International Publishing House Pvt. Ltd.

NEW DELHI

NEW DELHI

3ULQFLSOHVDQG3UDFWLFHVRI $LU3ROOXWLRQ &RQWURODQG$QDO\VLV

3ULQFLSOHVDQG3UDFWLFHVRI $LU3ROOXWLRQ &RQWURODQG$QDO\VLV

- 5 0XGDNDYL

- 5 0XGDNDYL

'HSWRI&KHPLFDO(QJLQHHULQJ ,QGLDQ,QVWLWXWHRI6FLHQFH %DQJDORUH

'HSWRI&KHPLFDO(QJLQHHULQJ ,QGLDQ,QVWLWXWHRI6FLHQFH %DQJDORUH

I.K. International Publishing House Pvt. Ltd.

I.K. International Publishing House Pvt. Ltd.

NEW DELHI

NEW DELHI

©Copyright 2019 I.K. International Pvt. Ltd., New Delhi-110002. This book may not be duplicated in any way without the express written consent of the publisher, except in the form of brief excerpts or quotations for the purposes of review. The information contained herein is for the personal use of the reader and may not be incorporated in any commercial programs, other books, databases, or any kind of software without written consent of the publisher. Making copies of this book or any portion for any purpose other than your own is a violation of copyright laws. Limits of Liability/disclaimer of Warranty: The author and publisher have used their best efforts in preparing this book. The author make no representation or warranties with respect to the accuracy or completeness of the contents of this book, and specifically disclaim any implied warranties of merchantability or fitness of any particular purpose. There are no warranties which extend beyond the descriptions contained in this paragraph. No warranty may be created or extended by sales representatives or written sales materials. The accuracy and completeness of the information provided herein and the opinions stated herein are not guaranteed or warranted to produce any particulars results, and the advice and strategies contained herein may not be suitable for every individual. Neither Dreamtech Press nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Trademarks: All brand names and product names used in this book are trademarks, registered trademarks, or trade names of their respective holders. Dreamtech Press is not associated with any product or vendor mentioned in this book. ISBN: 978-93-89307-74-0 EISBN: 978-93-90457-36-6

'HGLFDWHGWR

'HGLFDWHGWR

6UL +DUL 9D\X *XUX *DOX

6UL +DUL 9D\X *XUX *DOX

'HGLFDWHGWR

'HGLFDWHGWR

6UL +DUL 9D\X *XUX *DOX

6UL +DUL 9D\X *XUX *DOX

3UHIDFH

3UHIDFH

:LWKLQ D VKRUW VSDQ RI ILYH GHFDGHV HQYLURQPHQWDO LVVXHV DVVRFLDWHG ZLWK WKH HDUWK¶VDWPRVSKHUHKDYHFDSWXUHGWKHDWWHQWLRQDQGLPDJLQDWLRQRIHYHU\WKLQNLQJ SHUVRQ LQ WKH ZRUOG $LU SROOXWLRQ LQ SDUWLFXODU DORQJ ZLWK WKH HQYLURQPHQWDO GHJUDGDWLRQ KDV DVVXPHG DODUPLQJ SURSRUWLRQV ,W KDV EHFRPH XELTXLWRXV LQ LQGXVWULDOXUEDQDQGUXUDODUHDVXQLQKDELWHGUHJLRQVDQGHYHQLQVSDFHXSWRWKH VWUDWRVSKHUH6XGGHQO\³HQYLURQPHQWDOSROOXWLRQ´LQFOXGLQJDLUSROOXWLRQKDVEHFRPH HYHU\ERG\¶VEXVLQHVVDQGDOVRQRERG\¶VEXVLQHVV7KHYHU\IDFWWKDWKXPDQDQG DQLPDODQGSODQWVSHFLHVFRQVXPLQJR[\JHQDQGFDUERQGLR[LGHDUHWKHUHPDNHVLW HYHU\RQH¶VEXVLQHVV$WWKHVDPHWLPHWKHSROOXWDQWHPLVVLRQVRQJOREDOVFDOHDUH HQRXJK WR VFDUH WKH DFWLYLVWV LQWR ZLWKGUDZLQJ LQWR WKHLU VKHOOV DV WKH\ DUH QRW UHVSRQVLEOHIRUWKHFDWDVWURSKHKRSLQJWKDWVRPHRQHHOVHZLOOVWHSLQWKHLUVKRHV ,QWKHODVWWZRGHFDGHVWKHIURQWLHUVRIHQYLURQPHQWDOVFLHQFHKDYHDGYDQFHG UDSLGO\2XUSHUVSHFWLYHRIDLUSROOXWLRQKDVDOVRXQGHUJRQHUDGLFDOFKDQJHV)RU H[DPSOHJOREDOZDUPLQJLVQRPRUHDGHEDWDEOHLVVXHDQGµJOREDOFOLPDWLFFKDQJH¶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

:LWKLQ D VKRUW VSDQ RI ILYH GHFDGHV HQYLURQPHQWDO LVVXHV DVVRFLDWHG ZLWK WKH HDUWK¶VDWPRVSKHUHKDYHFDSWXUHGWKHDWWHQWLRQDQGLPDJLQDWLRQRIHYHU\WKLQNLQJ SHUVRQ LQ WKH ZRUOG $LU SROOXWLRQ LQ SDUWLFXODU DORQJ ZLWK WKH HQYLURQPHQWDO GHJUDGDWLRQ KDV DVVXPHG DODUPLQJ SURSRUWLRQV ,W KDV EHFRPH XELTXLWRXV LQ LQGXVWULDOXUEDQDQGUXUDODUHDVXQLQKDELWHGUHJLRQVDQGHYHQLQVSDFHXSWRWKH VWUDWRVSKHUH6XGGHQO\³HQYLURQPHQWDOSROOXWLRQ´LQFOXGLQJDLUSROOXWLRQKDVEHFRPH HYHU\ERG\¶VEXVLQHVVDQGDOVRQRERG\¶VEXVLQHVV7KHYHU\IDFWWKDWKXPDQDQG DQLPDODQGSODQWVSHFLHVFRQVXPLQJR[\JHQDQGFDUERQGLR[LGHDUHWKHUHPDNHVLW HYHU\RQH¶VEXVLQHVV$WWKHVDPHWLPHWKHSROOXWDQWHPLVVLRQVRQJOREDOVFDOHDUH HQRXJK WR VFDUH WKH DFWLYLVWV LQWR ZLWKGUDZLQJ LQWR WKHLU VKHOOV DV WKH\ DUH QRW UHVSRQVLEOHIRUWKHFDWDVWURSKHKRSLQJWKDWVRPHRQHHOVHZLOOVWHSLQWKHLUVKRHV ,QWKHODVWWZRGHFDGHVWKHIURQWLHUVRIHQYLURQPHQWDOVFLHQFHKDYHDGYDQFHG UDSLGO\2XUSHUVSHFWLYHRIDLUSROOXWLRQKDVDOVRXQGHUJRQHUDGLFDOFKDQJHV)RU H[DPSOHJOREDOZDUPLQJLVQRPRUHDGHEDWDEOHLVVXHDQGµJOREDOFOLPDWLFFKDQJH¶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

3UHIDFH

3UHIDFH

:LWKLQ D VKRUW VSDQ RI ILYH GHFDGHV HQYLURQPHQWDO LVVXHV DVVRFLDWHG ZLWK WKH HDUWK¶VDWPRVSKHUHKDYHFDSWXUHGWKHDWWHQWLRQDQGLPDJLQDWLRQRIHYHU\WKLQNLQJ SHUVRQ LQ WKH ZRUOG $LU SROOXWLRQ LQ SDUWLFXODU DORQJ ZLWK WKH HQYLURQPHQWDO GHJUDGDWLRQ KDV DVVXPHG DODUPLQJ SURSRUWLRQV ,W KDV EHFRPH XELTXLWRXV LQ LQGXVWULDOXUEDQDQGUXUDODUHDVXQLQKDELWHGUHJLRQVDQGHYHQLQVSDFHXSWRWKH VWUDWRVSKHUH6XGGHQO\³HQYLURQPHQWDOSROOXWLRQ´LQFOXGLQJDLUSROOXWLRQKDVEHFRPH HYHU\ERG\¶VEXVLQHVVDQGDOVRQRERG\¶VEXVLQHVV7KHYHU\IDFWWKDWKXPDQDQG DQLPDODQGSODQWVSHFLHVFRQVXPLQJR[\JHQDQGFDUERQGLR[LGHDUHWKHUHPDNHVLW HYHU\RQH¶VEXVLQHVV$WWKHVDPHWLPHWKHSROOXWDQWHPLVVLRQVRQJOREDOVFDOHDUH HQRXJK WR VFDUH WKH DFWLYLVWV LQWR ZLWKGUDZLQJ LQWR WKHLU VKHOOV DV WKH\ DUH QRW UHVSRQVLEOHIRUWKHFDWDVWURSKHKRSLQJWKDWVRPHRQHHOVHZLOOVWHSLQWKHLUVKRHV ,QWKHODVWWZRGHFDGHVWKHIURQWLHUVRIHQYLURQPHQWDOVFLHQFHKDYHDGYDQFHG UDSLGO\2XUSHUVSHFWLYHRIDLUSROOXWLRQKDVDOVRXQGHUJRQHUDGLFDOFKDQJHV)RU H[DPSOHJOREDOZDUPLQJLVQRPRUHDGHEDWDEOHLVVXHDQGµJOREDOFOLPDWLFFKDQJH¶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

:LWKLQ D VKRUW VSDQ RI ILYH GHFDGHV HQYLURQPHQWDO LVVXHV DVVRFLDWHG ZLWK WKH HDUWK¶VDWPRVSKHUHKDYHFDSWXUHGWKHDWWHQWLRQDQGLPDJLQDWLRQRIHYHU\WKLQNLQJ SHUVRQ LQ WKH ZRUOG $LU SROOXWLRQ LQ SDUWLFXODU DORQJ ZLWK WKH HQYLURQPHQWDO GHJUDGDWLRQ KDV DVVXPHG DODUPLQJ SURSRUWLRQV ,W KDV EHFRPH XELTXLWRXV LQ LQGXVWULDOXUEDQDQGUXUDODUHDVXQLQKDELWHGUHJLRQVDQGHYHQLQVSDFHXSWRWKH VWUDWRVSKHUH6XGGHQO\³HQYLURQPHQWDOSROOXWLRQ´LQFOXGLQJDLUSROOXWLRQKDVEHFRPH HYHU\ERG\¶VEXVLQHVVDQGDOVRQRERG\¶VEXVLQHVV7KHYHU\IDFWWKDWKXPDQDQG DQLPDODQGSODQWVSHFLHVFRQVXPLQJR[\JHQDQGFDUERQGLR[LGHDUHWKHUHPDNHVLW HYHU\RQH¶VEXVLQHVV$WWKHVDPHWLPHWKHSROOXWDQWHPLVVLRQVRQJOREDOVFDOHDUH HQRXJK WR VFDUH WKH DFWLYLVWV LQWR ZLWKGUDZLQJ LQWR WKHLU VKHOOV DV WKH\ DUH QRW UHVSRQVLEOHIRUWKHFDWDVWURSKHKRSLQJWKDWVRPHRQHHOVHZLOOVWHSLQWKHLUVKRHV ,QWKHODVWWZRGHFDGHVWKHIURQWLHUVRIHQYLURQPHQWDOVFLHQFHKDYHDGYDQFHG UDSLGO\2XUSHUVSHFWLYHRIDLUSROOXWLRQKDVDOVRXQGHUJRQHUDGLFDOFKDQJHV)RU H[DPSOHJOREDOZDUPLQJLVQRPRUHDGHEDWDEOHLVVXHDQGµJOREDOFOLPDWLFFKDQJH¶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

YLLL &RQWHQWV 3UHIDFH

YLLL &RQWHQWV 3UHIDFH

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±GHDOVZLWKYDULRXVDVSHFWVRIDLUSROOXWLRQFRQWURO 7KHWKLUGVHFWLRQFRPSULVLQJRIFKDSWHUVIURP±LVLQIRUPDWLYHLQFKDUDFWHU DQGGHDOVZLWKYDULRXVFXUUHQWHQYLURQPHQWDOLVVXHV$FKDSWHURQQRLVHSROOXWLRQ KDVEHHQLQFOXGHGWRHPSKDVL]HWKHLPSRUWDQFHRIQRLVHDVDSROOXWDQWWKRXJKLW PD\QRWTXDOLI\DVDQDLUSROOXWDQWRZLQJWRLWVWUDQVLHQWQDWXUH7KHIRXUWKVHFWLRQ IURP&KDSWHUV±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¶VDWWHPSWKDVDOZD\VEHHQWRSURYLGHFRPSUHKHQVLYHFXUUHQWGDWDDVIDUDV SRVVLEOHZKLFKZLOOEHXSGDWHGLQVXEVHTXHQWHGLWLRQV

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±GHDOVZLWKYDULRXVDVSHFWVRIDLUSROOXWLRQFRQWURO 7KHWKLUGVHFWLRQFRPSULVLQJRIFKDSWHUVIURP±LVLQIRUPDWLYHLQFKDUDFWHU DQGGHDOVZLWKYDULRXVFXUUHQWHQYLURQPHQWDOLVVXHV$FKDSWHURQQRLVHSROOXWLRQ KDVEHHQLQFOXGHGWRHPSKDVL]HWKHLPSRUWDQFHRIQRLVHDVDSROOXWDQWWKRXJKLW PD\QRWTXDOLI\DVDQDLUSROOXWDQWRZLQJWRLWVWUDQVLHQWQDWXUH7KHIRXUWKVHFWLRQ IURP&KDSWHUV±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¶VDWWHPSWKDVDOZD\VEHHQWRSURYLGHFRPSUHKHQVLYHFXUUHQWGDWDDVIDUDV SRVVLEOHZKLFKZLOOEHXSGDWHGLQVXEVHTXHQWHGLWLRQV

YLLL &RQWHQWV 3UHIDFH

YLLL &RQWHQWV 3UHIDFH

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±GHDOVZLWKYDULRXVDVSHFWVRIDLUSROOXWLRQFRQWURO 7KHWKLUGVHFWLRQFRPSULVLQJRIFKDSWHUVIURP±LVLQIRUPDWLYHLQFKDUDFWHU DQGGHDOVZLWKYDULRXVFXUUHQWHQYLURQPHQWDOLVVXHV$FKDSWHURQQRLVHSROOXWLRQ KDVEHHQLQFOXGHGWRHPSKDVL]HWKHLPSRUWDQFHRIQRLVHDVDSROOXWDQWWKRXJKLW PD\QRWTXDOLI\DVDQDLUSROOXWDQWRZLQJWRLWVWUDQVLHQWQDWXUH7KHIRXUWKVHFWLRQ IURP&KDSWHUV±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¶VDWWHPSWKDVDOZD\VEHHQWRSURYLGHFRPSUHKHQVLYHFXUUHQWGDWDDVIDUDV SRVVLEOHZKLFKZLOOEHXSGDWHGLQVXEVHTXHQWHGLWLRQV

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±GHDOVZLWKYDULRXVDVSHFWVRIDLUSROOXWLRQFRQWURO 7KHWKLUGVHFWLRQFRPSULVLQJRIFKDSWHUVIURP±LVLQIRUPDWLYHLQFKDUDFWHU DQGGHDOVZLWKYDULRXVFXUUHQWHQYLURQPHQWDOLVVXHV$FKDSWHURQQRLVHSROOXWLRQ KDVEHHQLQFOXGHGWRHPSKDVL]HWKHLPSRUWDQFHRIQRLVHDVDSROOXWDQWWKRXJKLW PD\QRWTXDOLI\DVDQDLUSROOXWDQWRZLQJWRLWVWUDQVLHQWQDWXUH7KHIRXUWKVHFWLRQ IURP&KDSWHUV±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¶VDWWHPSWKDVDOZD\VEHHQWRSURYLGHFRPSUHKHQVLYHFXUUHQWGDWDDVIDUDV SRVVLEOHZKLFKZLOOEHXSGDWHGLQVXEVHTXHQWHGLWLRQV

&RQWHQWV 3UHIDFH L[

&RQWHQWV 3UHIDFH L[

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

-50XGDNDYL

-50XGDNDYL

&RQWHQWV 3UHIDFH L[

&RQWHQWV 3UHIDFH L[

, DP JUHDWO\ LQGHEWHG WR WKH &XUULFXOXP 'HYHORS &HOO &'&  &HQWUH IRU &RQWLQXLQJ (GXFDWLRQ &&(  RI ,QGLDQ ,QVWLWXWH RI 6FLHQFH IRU SURYLGLQJ PH D JUDQWZKLFKZDVDJUHDWKHOSLQWKHSUHSDUDWLRQRIWKLVERRN,PXVWDFNQRZOHGJH P\ WKDQNV WR 3URI .HVKDYDUDR 3URI *$ %KDW 'U %9 1DUD\DQD 'U 36 5DPDQDQGVHYHUDORWKHUFROOHDJXHVZKRKDYHJRQHWKURXJKVRPHFKDSWHUVDQG PDGHDSSURSULDWHVXJJHVWLRQVZKLOHSUHSDULQJWKHPDQXVFULSW,WLVDSOHDVXUHWR DFNQRZOHGJHWKHKHOSRI0UV%9LG\DZDWKLIRUWKHSDLQVWDNLQJSURRIFRUUHFWLRQ ,DOVRZLVKWRUHFRUGP\GHHSVHQVHRIJUDWLWXGHWR5DMHHY0XGDNDYLZKRKDV VSHQWDJUHDWPDQ\IUXVWUDWLQJKRXUVZLWKPHZKLOHSUHSDULQJWKLVPDWHULDO:LWKRXW KLVDVVLVWDQFHWKLVZRUNZRXOGKDYHEHHQLPSRVVLEOH

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

-50XGDNDYL

-50XGDNDYL

&RQWHQWV 3UHIDFH

&RQWHQWV YLL

3UHIDFH

3DUW,,QWURGXFWLRQWR$LU3ROOXWLRQ

YLL 3DUW,,QWURGXFWLRQWR$LU3ROOXWLRQ

 $LU3ROOXWLRQ$*OREDO3KHQRPHQRQ  +LVWRU\RI$LU3ROOXWLRQ  7KH$WPRVSKHUH  'HILQLWLRQRI$LU3ROOXWLRQ  &ODVVLILFDWLRQRI$LU3ROOXWDQWV  6RXUFH&ODVVLILFDWLRQ  6RXUFH*URXSLQJ  (PLVVLRQ6RXUFHVRI3ROOXWDQWV  3RSXODWLRQ(QHUJ\DQG(QYLURQPHQW  0DQDJHPHQWRI)O\$VK  ,PSDFWRI&RDO0LQLQJ  (QYLURQPHQWDO3UREOHPVRI$OWHUQDWH(QHUJ\3URGXFWLRQ 4XHVWLRQV 5HIHUHQFHV

             

 $LU3ROOXWLRQ$*OREDO3KHQRPHQRQ  +LVWRU\RI$LU3ROOXWLRQ  7KH$WPRVSKHUH  'HILQLWLRQRI$LU3ROOXWLRQ  &ODVVLILFDWLRQRI$LU3ROOXWDQWV  6RXUFH&ODVVLILFDWLRQ  6RXUFH*URXSLQJ  (PLVVLRQ6RXUFHVRI3ROOXWDQWV  3RSXODWLRQ(QHUJ\DQG(QYLURQPHQW  0DQDJHPHQWRI)O\$VK  ,PSDFWRI&RDO0LQLQJ  (QYLURQPHQWDO3UREOHPVRI$OWHUQDWH(QHUJ\3URGXFWLRQ 4XHVWLRQV 5HIHUHQFHV

             

 *DVHRXV3ROOXWDQWVLQWKH$LU  8QLWVDQG0HDVXUHPHQWV  &DUERQ'LR[LGH  &DUERQ0RQR[LGH  +\GURFDUERQV  6XOSKXU'LR[LGH  +\GURJHQ6XOSKLGHDQG0HUFDSWDQV  1LWURJHQ2[LGHV  $PPRQLD  2UJDQLF1LWURJHQ&RPSRXQGV  2]RQHDQG2[LGDQWV  )OXRULQHDQG+\GURJHQ)OXRULGH  %HKDYLRXUDQG)DWHRI$LU3ROOXWDQWV  ,QWHUDFWLRQRI&DUERQ&RPSRXQGVLQWKH$WPRVSKHUH

             

 *DVHRXV3ROOXWDQWVLQWKH$LU  8QLWVDQG0HDVXUHPHQWV  &DUERQ'LR[LGH  &DUERQ0RQR[LGH  +\GURFDUERQV  6XOSKXU'LR[LGH  +\GURJHQ6XOSKLGHDQG0HUFDSWDQV  1LWURJHQ2[LGHV  $PPRQLD  2UJDQLF1LWURJHQ&RPSRXQGV  2]RQHDQG2[LGDQWV  )OXRULQHDQG+\GURJHQ)OXRULGH  %HKDYLRXUDQG)DWHRI$LU3ROOXWDQWV  ,QWHUDFWLRQRI&DUERQ&RPSRXQGVLQWKH$WPRVSKHUH

             

&RQWHQWV 3UHIDFH

&RQWHQWV YLL

3DUW,,QWURGXFWLRQWR$LU3ROOXWLRQ

3UHIDFH

YLL 3DUW,,QWURGXFWLRQWR$LU3ROOXWLRQ

 $LU3ROOXWLRQ$*OREDO3KHQRPHQRQ  +LVWRU\RI$LU3ROOXWLRQ  7KH$WPRVSKHUH  'HILQLWLRQRI$LU3ROOXWLRQ  &ODVVLILFDWLRQRI$LU3ROOXWDQWV  6RXUFH&ODVVLILFDWLRQ  6RXUFH*URXSLQJ  (PLVVLRQ6RXUFHVRI3ROOXWDQWV  3RSXODWLRQ(QHUJ\DQG(QYLURQPHQW  0DQDJHPHQWRI)O\$VK  ,PSDFWRI&RDO0LQLQJ  (QYLURQPHQWDO3UREOHPVRI$OWHUQDWH(QHUJ\3URGXFWLRQ 4XHVWLRQV 5HIHUHQFHV

             

 $LU3ROOXWLRQ$*OREDO3KHQRPHQRQ  +LVWRU\RI$LU3ROOXWLRQ  7KH$WPRVSKHUH  'HILQLWLRQRI$LU3ROOXWLRQ  &ODVVLILFDWLRQRI$LU3ROOXWDQWV  6RXUFH&ODVVLILFDWLRQ  6RXUFH*URXSLQJ  (PLVVLRQ6RXUFHVRI3ROOXWDQWV  3RSXODWLRQ(QHUJ\DQG(QYLURQPHQW  0DQDJHPHQWRI)O\$VK  ,PSDFWRI&RDO0LQLQJ  (QYLURQPHQWDO3UREOHPVRI$OWHUQDWH(QHUJ\3URGXFWLRQ 4XHVWLRQV 5HIHUHQFHV

             

 *DVHRXV3ROOXWDQWVLQWKH$LU  8QLWVDQG0HDVXUHPHQWV  &DUERQ'LR[LGH  &DUERQ0RQR[LGH  +\GURFDUERQV  6XOSKXU'LR[LGH  +\GURJHQ6XOSKLGHDQG0HUFDSWDQV  1LWURJHQ2[LGHV  $PPRQLD  2UJDQLF1LWURJHQ&RPSRXQGV  2]RQHDQG2[LGDQWV  )OXRULQHDQG+\GURJHQ)OXRULGH  %HKDYLRXUDQG)DWHRI$LU3ROOXWDQWV  ,QWHUDFWLRQRI&DUERQ&RPSRXQGVLQWKH$WPRVSKHUH

             

 *DVHRXV3ROOXWDQWVLQWKH$LU  8QLWVDQG0HDVXUHPHQWV  &DUERQ'LR[LGH  &DUERQ0RQR[LGH  +\GURFDUERQV  6XOSKXU'LR[LGH  +\GURJHQ6XOSKLGHDQG0HUFDSWDQV  1LWURJHQ2[LGHV  $PPRQLD  2UJDQLF1LWURJHQ&RPSRXQGV  2]RQHDQG2[LGDQWV  )OXRULQHDQG+\GURJHQ)OXRULGH  %HKDYLRXUDQG)DWHRI$LU3ROOXWDQWV  ,QWHUDFWLRQRI&DUERQ&RPSRXQGVLQWKH$WPRVSKHUH

             

[LL &RQWHQWV  %HKDYLRXUDQG)DWHRI6XOSKXU&RPSRXQGV  %HKDYLRXUDQG)DWHRI1LWURJHQ&RPSRXQGVDQG2]RQH 4XHVWLRQV 5HIHUHQFHV  3K\VLFRFKHPLFDO 3URSHUWLHV RI *DVHV DQG 6ROXWLRQV  3URSHUWLHVRI*DVHV  3URSHUWLHVRI6ROXWLRQV  3DUWLFOHVDQG6PDOO'URSOHWV  &KHPLFDO7KHUPRG\QDPLFV  3ULQFLSOHVRI&KHPLFDO.LQHWLFV  $EVRUSWLRQRI5DGLDWLRQ  3K\VLFRFKHPLFDO$VSHFWVRI3ROOXWLRQ  0ROHFXODU'LIIXVLRQ  (GG\'LVSHUVLRQ  7KH%R[0RGHO  &ORXG)RUPDWLRQ 4XHVWLRQV 5HIHUHQFHV

[LL &RQWHQWV                  

 %HKDYLRXUDQG)DWHRI6XOSKXU&RPSRXQGV  %HKDYLRXUDQG)DWHRI1LWURJHQ&RPSRXQGVDQG2]RQH 4XHVWLRQV 5HIHUHQFHV  3K\VLFRFKHPLFDO 3URSHUWLHV RI *DVHV DQG 6ROXWLRQV  3URSHUWLHVRI*DVHV  3URSHUWLHVRI6ROXWLRQV  3DUWLFOHVDQG6PDOO'URSOHWV  &KHPLFDO7KHUPRG\QDPLFV  3ULQFLSOHVRI&KHPLFDO.LQHWLFV  $EVRUSWLRQRI5DGLDWLRQ  3K\VLFRFKHPLFDO$VSHFWVRI3ROOXWLRQ  0ROHFXODU'LIIXVLRQ  (GG\'LVSHUVLRQ  7KH%R[0RGHO  &ORXG)RUPDWLRQ 4XHVWLRQV 5HIHUHQFHV

                 

 0HWHRURORJLFDO$VSHFWVRI$LU3ROOXWLRQ  $WPRVSKHULF&ODVVLILFDWLRQ  $WPRVSKHULF$LU&LUFXODWLRQ  0HWHRURORJLFDO3DUDPHWHUV  :LQG'LUHFWLRQDQG6SHHG  *URXQG/HYHO:LQG3DWWHUQV  3UHVVXUH±$OWLWXGH5HODWLRQVKLS  7HPSHUDWXUH±$OWLWXGH5HODWLRQVKLS  $WPRVSKHULF6WDELOLW\  0L[LQJ+HLJKW  3UHFLSLWDWLRQ  +XPLGLW\  6RODU5DGLDWLRQ  8WLOLW\RI0HWHRURORJLFDO)DFWRUV  0HDVXUHPHQWRI0HWHRURORJLFDO3DUDPHWHUV  0HWHRURORJLFDO0RGHOOLQJ 4XHVWLRQV 5HIHUHQFHV

                 

 0HWHRURORJLFDO$VSHFWVRI$LU3ROOXWLRQ  $WPRVSKHULF&ODVVLILFDWLRQ  $WPRVSKHULF$LU&LUFXODWLRQ  0HWHRURORJLFDO3DUDPHWHUV  :LQG'LUHFWLRQDQG6SHHG  *URXQG/HYHO:LQG3DWWHUQV  3UHVVXUH±$OWLWXGH5HODWLRQVKLS  7HPSHUDWXUH±$OWLWXGH5HODWLRQVKLS  $WPRVSKHULF6WDELOLW\  0L[LQJ+HLJKW  3UHFLSLWDWLRQ  +XPLGLW\  6RODU5DGLDWLRQ  8WLOLW\RI0HWHRURORJLFDO)DFWRUV  0HDVXUHPHQWRI0HWHRURORJLFDO3DUDPHWHUV  0HWHRURORJLFDO0RGHOOLQJ 4XHVWLRQV 5HIHUHQFHV

                 

 &KDUDFWHULVWLFV RI 6WDFN 3OXPHV  3OXPH%HKDYLRXU  3OXPH*HRPHWU\  'LVSHUVLRQRI$LU3ROOXWDQWV  7KH*DXVVLDQ3OXPH0RGHO  (VWLPDWLRQRI6WDFN+HLJKW

     

 &KDUDFWHULVWLFV RI 6WDFN 3OXPHV  3OXPH%HKDYLRXU  3OXPH*HRPHWU\  'LVSHUVLRQRI$LU3ROOXWDQWV  7KH*DXVVLDQ3OXPH0RGHO  (VWLPDWLRQRI6WDFN+HLJKW

     

[LL &RQWHQWV  %HKDYLRXUDQG)DWHRI6XOSKXU&RPSRXQGV  %HKDYLRXUDQG)DWHRI1LWURJHQ&RPSRXQGVDQG2]RQH 4XHVWLRQV 5HIHUHQFHV  3K\VLFRFKHPLFDO 3URSHUWLHV RI *DVHV DQG 6ROXWLRQV  3URSHUWLHVRI*DVHV  3URSHUWLHVRI6ROXWLRQV  3DUWLFOHVDQG6PDOO'URSOHWV  &KHPLFDO7KHUPRG\QDPLFV  3ULQFLSOHVRI&KHPLFDO.LQHWLFV  $EVRUSWLRQRI5DGLDWLRQ  3K\VLFRFKHPLFDO$VSHFWVRI3ROOXWLRQ  0ROHFXODU'LIIXVLRQ  (GG\'LVSHUVLRQ  7KH%R[0RGHO  &ORXG)RUPDWLRQ 4XHVWLRQV 5HIHUHQFHV

[LL &RQWHQWV                  

 %HKDYLRXUDQG)DWHRI6XOSKXU&RPSRXQGV  %HKDYLRXUDQG)DWHRI1LWURJHQ&RPSRXQGVDQG2]RQH 4XHVWLRQV 5HIHUHQFHV  3K\VLFRFKHPLFDO 3URSHUWLHV RI *DVHV DQG 6ROXWLRQV  3URSHUWLHVRI*DVHV  3URSHUWLHVRI6ROXWLRQV  3DUWLFOHVDQG6PDOO'URSOHWV  &KHPLFDO7KHUPRG\QDPLFV  3ULQFLSOHVRI&KHPLFDO.LQHWLFV  $EVRUSWLRQRI5DGLDWLRQ  3K\VLFRFKHPLFDO$VSHFWVRI3ROOXWLRQ  0ROHFXODU'LIIXVLRQ  (GG\'LVSHUVLRQ  7KH%R[0RGHO  &ORXG)RUPDWLRQ 4XHVWLRQV 5HIHUHQFHV

                 

 0HWHRURORJLFDO$VSHFWVRI$LU3ROOXWLRQ  $WPRVSKHULF&ODVVLILFDWLRQ  $WPRVSKHULF$LU&LUFXODWLRQ  0HWHRURORJLFDO3DUDPHWHUV  :LQG'LUHFWLRQDQG6SHHG  *URXQG/HYHO:LQG3DWWHUQV  3UHVVXUH±$OWLWXGH5HODWLRQVKLS  7HPSHUDWXUH±$OWLWXGH5HODWLRQVKLS  $WPRVSKHULF6WDELOLW\  0L[LQJ+HLJKW  3UHFLSLWDWLRQ  +XPLGLW\  6RODU5DGLDWLRQ  8WLOLW\RI0HWHRURORJLFDO)DFWRUV  0HDVXUHPHQWRI0HWHRURORJLFDO3DUDPHWHUV  0HWHRURORJLFDO0RGHOOLQJ 4XHVWLRQV 5HIHUHQFHV

                 

 0HWHRURORJLFDO$VSHFWVRI$LU3ROOXWLRQ  $WPRVSKHULF&ODVVLILFDWLRQ  $WPRVSKHULF$LU&LUFXODWLRQ  0HWHRURORJLFDO3DUDPHWHUV  :LQG'LUHFWLRQDQG6SHHG  *URXQG/HYHO:LQG3DWWHUQV  3UHVVXUH±$OWLWXGH5HODWLRQVKLS  7HPSHUDWXUH±$OWLWXGH5HODWLRQVKLS  $WPRVSKHULF6WDELOLW\  0L[LQJ+HLJKW  3UHFLSLWDWLRQ  +XPLGLW\  6RODU5DGLDWLRQ  8WLOLW\RI0HWHRURORJLFDO)DFWRUV  0HDVXUHPHQWRI0HWHRURORJLFDO3DUDPHWHUV  0HWHRURORJLFDO0RGHOOLQJ 4XHVWLRQV 5HIHUHQFHV

                 

 &KDUDFWHULVWLFV RI 6WDFN 3OXPHV  3OXPH%HKDYLRXU  3OXPH*HRPHWU\  'LVSHUVLRQRI$LU3ROOXWDQWV  7KH*DXVVLDQ3OXPH0RGHO  (VWLPDWLRQRI6WDFN+HLJKW

     

 &KDUDFWHULVWLFV RI 6WDFN 3OXPHV  3OXPH%HKDYLRXU  3OXPH*HRPHWU\  'LVSHUVLRQRI$LU3ROOXWDQWV  7KH*DXVVLDQ3OXPH0RGHO  (VWLPDWLRQRI6WDFN+HLJKW

     

&RQWHQWV [LLL  (VWLPDWLRQRI%XR\DQW3OXPH5LVH 4XHVWLRQV 5HIHUHQFHV

  

3DUW,,&RQWURO7HFKQRORJ\

&RQWHQWV [LLL  (VWLPDWLRQRI%XR\DQW3OXPH5LVH 4XHVWLRQV 5HIHUHQFHV

  

3DUW,,&RQWURO7HFKQRORJ\

 6DPSOLQJDQG0HDVXUHPHQWRI$LU3ROOXWLRQ  7HUPLQRORJ\  7KHRU\RI6DPSOLQJ  7HFKQLTXHVRI6DPSOLQJ  7\SHVRI(QYLURQPHQWDO6DPSOLQJ  $LU6DPSOLQJ(TXLSPHQW  0HWHULQJ'HYLFHV  $LU4XDQWLW\0HDVXUHPHQW  6DPSOLQJ7UDLQV  $HURVRO6DPSOLQJ  6DPSOLQJ*DVHRXV3ROOXWDQWV  *UDE6DPSOLQJ  +LJK9ROXPH6DPSOHUVIRU3DUWLFXODWHV  7DSH6DPSOLQJ  6WDFN6DPSOLQJ  3DUWLFXODWH6DPSOLQJIURP6WDFNV  6WDFN*DV6DPSOLQJ  3URFHGXUHIRU3DUWLFXODWH0DWWHU6DPSOLQJ 4XHVWLRQV 5HIHUHQFHV

                   

 6DPSOLQJDQG0HDVXUHPHQWRI$LU3ROOXWLRQ  7HUPLQRORJ\  7KHRU\RI6DPSOLQJ  7HFKQLTXHVRI6DPSOLQJ  7\SHVRI(QYLURQPHQWDO6DPSOLQJ  $LU6DPSOLQJ(TXLSPHQW  0HWHULQJ'HYLFHV  $LU4XDQWLW\0HDVXUHPHQW  6DPSOLQJ7UDLQV  $HURVRO6DPSOLQJ  6DPSOLQJ*DVHRXV3ROOXWDQWV  *UDE6DPSOLQJ  +LJK9ROXPH6DPSOHUVIRU3DUWLFXODWHV  7DSH6DPSOLQJ  6WDFN6DPSOLQJ  3DUWLFXODWH6DPSOLQJIURP6WDFNV  6WDFN*DV6DPSOLQJ  3URFHGXUHIRU3DUWLFXODWH0DWWHU6DPSOLQJ 4XHVWLRQV 5HIHUHQFHV

                   

 3DUWLFXODWH &RQWURO 7HFKQRORJLHV  3DUWLFXODWH%HKDYLRXULQ([KDXVWV  3DUWLFXODWH(PLVVLRQ&RQWURO  *UDYLWDWLRQDO6HWWOLQJ&KDPEHUV  &\FORQH6HSDUDWRUV  *DV)LOWUDWLRQ  (OHFWURVWDWLF3UHFLSLWDWRUV  3DUWLFXODWH5HPRYDOE\6FUXEELQJ 4XHVWLRQV 5HIHUHQFHV

         

 3DUWLFXODWH &RQWURO 7HFKQRORJLHV  3DUWLFXODWH%HKDYLRXULQ([KDXVWV  3DUWLFXODWH(PLVVLRQ&RQWURO  *UDYLWDWLRQDO6HWWOLQJ&KDPEHUV  &\FORQH6HSDUDWRUV  *DV)LOWUDWLRQ  (OHFWURVWDWLF3UHFLSLWDWRUV  3DUWLFXODWH5HPRYDOE\6FUXEELQJ 4XHVWLRQV 5HIHUHQFHV

         

 $EVRUSWLRQRI*DVHRXV(PLVVLRQV  $EVRUSWLRQLQ/LTXLGV  7KHRU\RI*DV$EVRUSWLRQ  6FUXEELQJ0HGLXP  *DV/LTXLG$EVRUSWLRQ(TXLSPHQW  'HVLJQ&RQVLGHUDWLRQV  7RZHU'LDPHWHU

      

 $EVRUSWLRQRI*DVHRXV(PLVVLRQV  $EVRUSWLRQLQ/LTXLGV  7KHRU\RI*DV$EVRUSWLRQ  6FUXEELQJ0HGLXP  *DV/LTXLG$EVRUSWLRQ(TXLSPHQW  'HVLJQ&RQVLGHUDWLRQV  7RZHU'LDPHWHU

      

&RQWHQWV [LLL  (VWLPDWLRQRI%XR\DQW3OXPH5LVH 4XHVWLRQV 5HIHUHQFHV

  

3DUW,,&RQWURO7HFKQRORJ\

&RQWHQWV [LLL  (VWLPDWLRQRI%XR\DQW3OXPH5LVH 4XHVWLRQV 5HIHUHQFHV

  

3DUW,,&RQWURO7HFKQRORJ\

 6DPSOLQJDQG0HDVXUHPHQWRI$LU3ROOXWLRQ  7HUPLQRORJ\  7KHRU\RI6DPSOLQJ  7HFKQLTXHVRI6DPSOLQJ  7\SHVRI(QYLURQPHQWDO6DPSOLQJ  $LU6DPSOLQJ(TXLSPHQW  0HWHULQJ'HYLFHV  $LU4XDQWLW\0HDVXUHPHQW  6DPSOLQJ7UDLQV  $HURVRO6DPSOLQJ  6DPSOLQJ*DVHRXV3ROOXWDQWV  *UDE6DPSOLQJ  +LJK9ROXPH6DPSOHUVIRU3DUWLFXODWHV  7DSH6DPSOLQJ  6WDFN6DPSOLQJ  3DUWLFXODWH6DPSOLQJIURP6WDFNV  6WDFN*DV6DPSOLQJ  3URFHGXUHIRU3DUWLFXODWH0DWWHU6DPSOLQJ 4XHVWLRQV 5HIHUHQFHV

                   

 6DPSOLQJDQG0HDVXUHPHQWRI$LU3ROOXWLRQ  7HUPLQRORJ\  7KHRU\RI6DPSOLQJ  7HFKQLTXHVRI6DPSOLQJ  7\SHVRI(QYLURQPHQWDO6DPSOLQJ  $LU6DPSOLQJ(TXLSPHQW  0HWHULQJ'HYLFHV  $LU4XDQWLW\0HDVXUHPHQW  6DPSOLQJ7UDLQV  $HURVRO6DPSOLQJ  6DPSOLQJ*DVHRXV3ROOXWDQWV  *UDE6DPSOLQJ  +LJK9ROXPH6DPSOHUVIRU3DUWLFXODWHV  7DSH6DPSOLQJ  6WDFN6DPSOLQJ  3DUWLFXODWH6DPSOLQJIURP6WDFNV  6WDFN*DV6DPSOLQJ  3URFHGXUHIRU3DUWLFXODWH0DWWHU6DPSOLQJ 4XHVWLRQV 5HIHUHQFHV

                   

 3DUWLFXODWH &RQWURO 7HFKQRORJLHV  3DUWLFXODWH%HKDYLRXULQ([KDXVWV  3DUWLFXODWH(PLVVLRQ&RQWURO  *UDYLWDWLRQDO6HWWOLQJ&KDPEHUV  &\FORQH6HSDUDWRUV  *DV)LOWUDWLRQ  (OHFWURVWDWLF3UHFLSLWDWRUV  3DUWLFXODWH5HPRYDOE\6FUXEELQJ 4XHVWLRQV 5HIHUHQFHV

         

 3DUWLFXODWH &RQWURO 7HFKQRORJLHV  3DUWLFXODWH%HKDYLRXULQ([KDXVWV  3DUWLFXODWH(PLVVLRQ&RQWURO  *UDYLWDWLRQDO6HWWOLQJ&KDPEHUV  &\FORQH6HSDUDWRUV  *DV)LOWUDWLRQ  (OHFWURVWDWLF3UHFLSLWDWRUV  3DUWLFXODWH5HPRYDOE\6FUXEELQJ 4XHVWLRQV 5HIHUHQFHV

         

 $EVRUSWLRQRI*DVHRXV(PLVVLRQV  $EVRUSWLRQLQ/LTXLGV  7KHRU\RI*DV$EVRUSWLRQ  6FUXEELQJ0HGLXP  *DV/LTXLG$EVRUSWLRQ(TXLSPHQW  'HVLJQ&RQVLGHUDWLRQV  7RZHU'LDPHWHU

      

 $EVRUSWLRQRI*DVHRXV(PLVVLRQV  $EVRUSWLRQLQ/LTXLGV  7KHRU\RI*DV$EVRUSWLRQ  6FUXEELQJ0HGLXP  *DV/LTXLG$EVRUSWLRQ(TXLSPHQW  'HVLJQ&RQVLGHUDWLRQV  7RZHU'LDPHWHU

      

[LY &RQWHQWV  7RZHU+HLJKW  $SSOLFDWLRQV 4XHVWLRQV 5HIHUHQFHV

[LY &RQWHQWV    

 7RZHU+HLJKW  $SSOLFDWLRQV 4XHVWLRQV 5HIHUHQFHV

   

 $GVRUSWLRQRI*DVHRXV3ROOXWDQWV  $GVRUSWLRQ 3URFHVVHV  $GVRUSWLRQ6\VWHPV  7KHRUHWLFDO&RQVLGHUDWLRQV  $GVRUSWLRQ,VRWKHUPV  $GVRUSWLRQ(TXLSPHQW  $GVRUEHQWV  ,QGXVWULDO$SSOLFDWLRQV 4XHVWLRQV 5HIHUHQFHV

         

 $GVRUSWLRQRI*DVHRXV3ROOXWDQWV  $GVRUSWLRQ 3URFHVVHV  $GVRUSWLRQ6\VWHPV  7KHRUHWLFDO&RQVLGHUDWLRQV  $GVRUSWLRQ,VRWKHUPV  $GVRUSWLRQ(TXLSPHQW  $GVRUEHQWV  ,QGXVWULDO$SSOLFDWLRQV 4XHVWLRQV 5HIHUHQFHV

         

 $LU3ROOXWLRQ&RQWUROE\&RPEXVWLRQ  7KHRUHWLFDO3ULQFLSOHV  'LUHFW&RPEXVWLRQRU)ODUHV  7KHUPDO,QFLQHUDWLRQ  7KH7HFKQRORJLFDO.H\VWR3HUIRUPDQFH/HYHOV  /LTXLG,QMHFWLRQ,QFLQHUDWRUV  5RWDU\.LOQV  )OXLGL]HG%HG,QFLQHUDWLRQ  +HDUWK,QFLQHUDWRUV  )ODPHOHVV7KHUPDO2[LGDWLRQ  &DWDO\WLF&RPEXVWLRQ 4XHVWLRQV 5HIHUHQFHV

            

 $LU3ROOXWLRQ&RQWUROE\&RPEXVWLRQ  7KHRUHWLFDO3ULQFLSOHV  'LUHFW&RPEXVWLRQRU)ODUHV  7KHUPDO,QFLQHUDWLRQ  7KH7HFKQRORJLFDO.H\VWR3HUIRUPDQFH/HYHOV  /LTXLG,QMHFWLRQ,QFLQHUDWRUV  5RWDU\.LOQV  )OXLGL]HG%HG,QFLQHUDWLRQ  +HDUWK,QFLQHUDWRUV  )ODPHOHVV7KHUPDO2[LGDWLRQ  &DWDO\WLF&RPEXVWLRQ 4XHVWLRQV 5HIHUHQFHV

            

 &RQWURORI6XOSKXU'LR[LGH(PLVVLRQV  ([WUDFWLRQRI6XOSKXUIURP)XHOV  &RDO*DVLILFDWLRQ  )OXLGL]HG%HG&RPEXVWLRQ  )OXH*DV'HVXOSKXUL]DWLRQ  :HW6FUXEELQJ7HFKQRORJLHV  6HPL'U\6\VWHPV  2WKHU 3URFHVVHV  5HFHQW$GYDQFHV 4XHVWLRQV 5HIHUHQFHV

          

 &RQWURORI6XOSKXU'LR[LGH(PLVVLRQV  ([WUDFWLRQRI6XOSKXUIURP)XHOV  &RDO*DVLILFDWLRQ  )OXLGL]HG%HG&RPEXVWLRQ  )OXH*DV'HVXOSKXUL]DWLRQ  :HW6FUXEELQJ7HFKQRORJLHV  6HPL'U\6\VWHPV  2WKHU 3URFHVVHV  5HFHQW$GYDQFHV 4XHVWLRQV 5HIHUHQFHV

          

 (PLVVLRQ&RQWURORI1LWURJHQ2[LGHV  &RQYHUVLRQRI2UJDQLF1LWURJHQ  7KHRUHWLFDO$VSHFWVRI1LWULF2[LGH)RUPDWLRQ

  

 (PLVVLRQ&RQWURORI1LWURJHQ2[LGHV  &RQYHUVLRQRI2UJDQLF1LWURJHQ  7KHRUHWLFDO$VSHFWVRI1LWULF2[LGH)RUPDWLRQ

  

[LY &RQWHQWV  7RZHU+HLJKW  $SSOLFDWLRQV 4XHVWLRQV 5HIHUHQFHV

[LY &RQWHQWV    

 7RZHU+HLJKW  $SSOLFDWLRQV 4XHVWLRQV 5HIHUHQFHV

   

 $GVRUSWLRQRI*DVHRXV3ROOXWDQWV  $GVRUSWLRQ 3URFHVVHV  $GVRUSWLRQ6\VWHPV  7KHRUHWLFDO&RQVLGHUDWLRQV  $GVRUSWLRQ,VRWKHUPV  $GVRUSWLRQ(TXLSPHQW  $GVRUEHQWV  ,QGXVWULDO$SSOLFDWLRQV 4XHVWLRQV 5HIHUHQFHV

         

 $GVRUSWLRQRI*DVHRXV3ROOXWDQWV  $GVRUSWLRQ 3URFHVVHV  $GVRUSWLRQ6\VWHPV  7KHRUHWLFDO&RQVLGHUDWLRQV  $GVRUSWLRQ,VRWKHUPV  $GVRUSWLRQ(TXLSPHQW  $GVRUEHQWV  ,QGXVWULDO$SSOLFDWLRQV 4XHVWLRQV 5HIHUHQFHV

         

 $LU3ROOXWLRQ&RQWUROE\&RPEXVWLRQ  7KHRUHWLFDO3ULQFLSOHV  'LUHFW&RPEXVWLRQRU)ODUHV  7KHUPDO,QFLQHUDWLRQ  7KH7HFKQRORJLFDO.H\VWR3HUIRUPDQFH/HYHOV  /LTXLG,QMHFWLRQ,QFLQHUDWRUV  5RWDU\.LOQV  )OXLGL]HG%HG,QFLQHUDWLRQ  +HDUWK,QFLQHUDWRUV  )ODPHOHVV7KHUPDO2[LGDWLRQ  &DWDO\WLF&RPEXVWLRQ 4XHVWLRQV 5HIHUHQFHV

            

 $LU3ROOXWLRQ&RQWUROE\&RPEXVWLRQ  7KHRUHWLFDO3ULQFLSOHV  'LUHFW&RPEXVWLRQRU)ODUHV  7KHUPDO,QFLQHUDWLRQ  7KH7HFKQRORJLFDO.H\VWR3HUIRUPDQFH/HYHOV  /LTXLG,QMHFWLRQ,QFLQHUDWRUV  5RWDU\.LOQV  )OXLGL]HG%HG,QFLQHUDWLRQ  +HDUWK,QFLQHUDWRUV  )ODPHOHVV7KHUPDO2[LGDWLRQ  &DWDO\WLF&RPEXVWLRQ 4XHVWLRQV 5HIHUHQFHV

            

 &RQWURORI6XOSKXU'LR[LGH(PLVVLRQV  ([WUDFWLRQRI6XOSKXUIURP)XHOV  &RDO*DVLILFDWLRQ  )OXLGL]HG%HG&RPEXVWLRQ  )OXH*DV'HVXOSKXUL]DWLRQ  :HW6FUXEELQJ7HFKQRORJLHV  6HPL'U\6\VWHPV  2WKHU 3URFHVVHV  5HFHQW$GYDQFHV 4XHVWLRQV 5HIHUHQFHV

          

 &RQWURORI6XOSKXU'LR[LGH(PLVVLRQV  ([WUDFWLRQRI6XOSKXUIURP)XHOV  &RDO*DVLILFDWLRQ  )OXLGL]HG%HG&RPEXVWLRQ  )OXH*DV'HVXOSKXUL]DWLRQ  :HW6FUXEELQJ7HFKQRORJLHV  6HPL'U\6\VWHPV  2WKHU 3URFHVVHV  5HFHQW$GYDQFHV 4XHVWLRQV 5HIHUHQFHV

          

 (PLVVLRQ&RQWURORI1LWURJHQ2[LGHV  &RQYHUVLRQRI2UJDQLF1LWURJHQ  7KHRUHWLFDO$VSHFWVRI1LWULF2[LGH)RUPDWLRQ

  

 (PLVVLRQ&RQWURORI1LWURJHQ2[LGHV  &RQYHUVLRQRI2UJDQLF1LWURJHQ  7KHRUHWLFDO$VSHFWVRI1LWULF2[LGH)RUPDWLRQ

  

&RQWHQWV [Y  0RGLILFDWLRQRIWKH&RPEXVWLRQ3URFHVV  (IIOXHQW*DV7UHDWPHQW  $GVRUSWLRQRQ6ROLGV  &DWDO\WLF'HFRPSRVLWLRQ  6HOHFWLYH&DWDO\WLF5HGXFWLRQRI12[ 4XHVWLRQV 5HIHUHQFHV  &RQWURORI2UJDQLF(PLVVLRQV  (QYLURQPHQWDO6LJQLILFDQFHRI2UJDQLF&RPSRXQGV  9RODWLOH2UJDQLF&RPSRXQGV92&V  &KDUDFWHULVWLFV RI 2GRXUV  &RQWURORI9RODWLOH6XOSKXU&RPSRXQGV96&V  2GRXU&RQWURO  1RQSRLQW6RXUFH2GRXUV  2GRXU&RQWURO5HJXODWLRQV 4XHVWLRQV 5HIHUHQFHV

                

3DUW,,,&XUUHQW7RSLFV

&RQWHQWV [Y  0RGLILFDWLRQRIWKH&RPEXVWLRQ3URFHVV  (IIOXHQW*DV7UHDWPHQW  $GVRUSWLRQRQ6ROLGV  &DWDO\WLF'HFRPSRVLWLRQ  6HOHFWLYH&DWDO\WLF5HGXFWLRQRI12[ 4XHVWLRQV 5HIHUHQFHV  &RQWURORI2UJDQLF(PLVVLRQV  (QYLURQPHQWDO6LJQLILFDQFHRI2UJDQLF&RPSRXQGV  9RODWLOH2UJDQLF&RPSRXQGV92&V  &KDUDFWHULVWLFV RI 2GRXUV  &RQWURORI9RODWLOH6XOSKXU&RPSRXQGV96&V  2GRXU&RQWURO  1RQSRLQW6RXUFH2GRXUV  2GRXU&RQWURO5HJXODWLRQV 4XHVWLRQV 5HIHUHQFHV

                

3DUW,,,&XUUHQW7RSLFV

 ,QGRRU$LU3ROOXWLRQ  &RPEXVWLRQ 6RXUFHV  &LJDUHWWH6PRNHDVDQ,QGRRU3ROOXWDQW  ,QGRRU$LU4XDOLW\  ,QGRRU$LU4XDOLW\0RGHO 4XHVWLRQV 5HIHUHQFHV

      

 ,QGRRU$LU3ROOXWLRQ  &RPEXVWLRQ 6RXUFHV  &LJDUHWWH6PRNHDVDQ,QGRRU3ROOXWDQW  ,QGRRU$LU4XDOLW\  ,QGRRU$LU4XDOLW\0RGHO 4XHVWLRQV 5HIHUHQFHV

      

 $XWRPRELOH (PLVVLRQ &RQWURO  7UDQVSRUW6FHQDULRLQ,QGLD  ,QWHUQDO&RPEXVWLRQ(QJLQHV  $LU3ROOXWDQWVIURP3HWURO(QJLQHV  1DWXUHRI'LHVHO(PLVVLRQV  5HDFWLYLW\DQG&DUFLQRJHQLFLW\RI+&(PLVVLRQV  &RQWURO7HFKQRORJLHVLQ6SDUN,JQLWLRQ(QJLQHV  &RQWURO7HFKQRORJLHVIRU'LHVHO(QJLQHV  3DUWLFXODWH0DWWHULQ'LHVHO(QJLQHV  $OWHUQDWLYH)XHOVDV3ROOXWLRQ5HGXFHUV  $XWRPRELOH3ROOXWLRQLQ,QGLD 4XHVWLRQV 5HIHUHQFHV

            

 $XWRPRELOH (PLVVLRQ &RQWURO  7UDQVSRUW6FHQDULRLQ,QGLD  ,QWHUQDO&RPEXVWLRQ(QJLQHV  $LU3ROOXWDQWVIURP3HWURO(QJLQHV  1DWXUHRI'LHVHO(PLVVLRQV  5HDFWLYLW\DQG&DUFLQRJHQLFLW\RI+&(PLVVLRQV  &RQWURO7HFKQRORJLHVLQ6SDUN,JQLWLRQ(QJLQHV  &RQWURO7HFKQRORJLHVIRU'LHVHO(QJLQHV  3DUWLFXODWH0DWWHULQ'LHVHO(QJLQHV  $OWHUQDWLYH)XHOVDV3ROOXWLRQ5HGXFHUV  $XWRPRELOH3ROOXWLRQLQ,QGLD 4XHVWLRQV 5HIHUHQFHV

            

 *OREDO&OLPDWH&KDQJH  *OREDO:DUPLQJ

 

 *OREDO&OLPDWH&KDQJH  *OREDO:DUPLQJ

 

&RQWHQWV [Y  0RGLILFDWLRQRIWKH&RPEXVWLRQ3URFHVV  (IIOXHQW*DV7UHDWPHQW  $GVRUSWLRQRQ6ROLGV  &DWDO\WLF'HFRPSRVLWLRQ  6HOHFWLYH&DWDO\WLF5HGXFWLRQRI12[ 4XHVWLRQV 5HIHUHQFHV  &RQWURORI2UJDQLF(PLVVLRQV  (QYLURQPHQWDO6LJQLILFDQFHRI2UJDQLF&RPSRXQGV  9RODWLOH2UJDQLF&RPSRXQGV92&V  &KDUDFWHULVWLFV RI 2GRXUV  &RQWURORI9RODWLOH6XOSKXU&RPSRXQGV96&V  2GRXU&RQWURO  1RQSRLQW6RXUFH2GRXUV  2GRXU&RQWURO5HJXODWLRQV 4XHVWLRQV 5HIHUHQFHV

                

3DUW,,,&XUUHQW7RSLFV

&RQWHQWV [Y  0RGLILFDWLRQRIWKH&RPEXVWLRQ3URFHVV  (IIOXHQW*DV7UHDWPHQW  $GVRUSWLRQRQ6ROLGV  &DWDO\WLF'HFRPSRVLWLRQ  6HOHFWLYH&DWDO\WLF5HGXFWLRQRI12[ 4XHVWLRQV 5HIHUHQFHV  &RQWURORI2UJDQLF(PLVVLRQV  (QYLURQPHQWDO6LJQLILFDQFHRI2UJDQLF&RPSRXQGV  9RODWLOH2UJDQLF&RPSRXQGV92&V  &KDUDFWHULVWLFV RI 2GRXUV  &RQWURORI9RODWLOH6XOSKXU&RPSRXQGV96&V  2GRXU&RQWURO  1RQSRLQW6RXUFH2GRXUV  2GRXU&RQWURO5HJXODWLRQV 4XHVWLRQV 5HIHUHQFHV

                

3DUW,,,&XUUHQW7RSLFV

 ,QGRRU$LU3ROOXWLRQ  &RPEXVWLRQ 6RXUFHV  &LJDUHWWH6PRNHDVDQ,QGRRU3ROOXWDQW  ,QGRRU$LU4XDOLW\  ,QGRRU$LU4XDOLW\0RGHO 4XHVWLRQV 5HIHUHQFHV

      

 ,QGRRU$LU3ROOXWLRQ  &RPEXVWLRQ 6RXUFHV  &LJDUHWWH6PRNHDVDQ,QGRRU3ROOXWDQW  ,QGRRU$LU4XDOLW\  ,QGRRU$LU4XDOLW\0RGHO 4XHVWLRQV 5HIHUHQFHV

      

 $XWRPRELOH (PLVVLRQ &RQWURO  7UDQVSRUW6FHQDULRLQ,QGLD  ,QWHUQDO&RPEXVWLRQ(QJLQHV  $LU3ROOXWDQWVIURP3HWURO(QJLQHV  1DWXUHRI'LHVHO(PLVVLRQV  5HDFWLYLW\DQG&DUFLQRJHQLFLW\RI+&(PLVVLRQV  &RQWURO7HFKQRORJLHVLQ6SDUN,JQLWLRQ(QJLQHV  &RQWURO7HFKQRORJLHVIRU'LHVHO(QJLQHV  3DUWLFXODWH0DWWHULQ'LHVHO(QJLQHV  $OWHUQDWLYH)XHOVDV3ROOXWLRQ5HGXFHUV  $XWRPRELOH3ROOXWLRQLQ,QGLD 4XHVWLRQV 5HIHUHQFHV

            

 $XWRPRELOH (PLVVLRQ &RQWURO  7UDQVSRUW6FHQDULRLQ,QGLD  ,QWHUQDO&RPEXVWLRQ(QJLQHV  $LU3ROOXWDQWVIURP3HWURO(QJLQHV  1DWXUHRI'LHVHO(PLVVLRQV  5HDFWLYLW\DQG&DUFLQRJHQLFLW\RI+&(PLVVLRQV  &RQWURO7HFKQRORJLHVLQ6SDUN,JQLWLRQ(QJLQHV  &RQWURO7HFKQRORJLHVIRU'LHVHO(QJLQHV  3DUWLFXODWH0DWWHULQ'LHVHO(QJLQHV  $OWHUQDWLYH)XHOVDV3ROOXWLRQ5HGXFHUV  $XWRPRELOH3ROOXWLRQLQ,QGLD 4XHVWLRQV 5HIHUHQFHV

            

 *OREDO&OLPDWH&KDQJH  *OREDO:DUPLQJ

 

 *OREDO&OLPDWH&KDQJH  *OREDO:DUPLQJ

 

[YL &RQWHQWV  *OREDO7HPSHUDWXUH0RGHOV  7KH*UHHQKRXVH(IIHFW  3ODQHWDU\(QHUJ\'LVWULEXWLRQV  &OLPDWH&KDQJH9DULDELOLW\  7KH5ROHDQG,PSRUWDQFHRI&DUERQ'LR[LGHLQ*OREDO:DUPLQJ  2WKHU*UHHQKRXVH*DVHV  ,PSOLFDWLRQVRI*OREDO:DUPLQJ  ,QGLFDWRUVRI*OREDO:DUPLQJ  *OREDO3HUVSHFWLYHVRQ*UHHQKRXVH(IIHFW 4XHVWLRQV 5HIHUHQFHV

[YL &RQWHQWV           

 *OREDO7HPSHUDWXUH0RGHOV  7KH*UHHQKRXVH(IIHFW  3ODQHWDU\(QHUJ\'LVWULEXWLRQV  &OLPDWH&KDQJH9DULDELOLW\  7KH5ROHDQG,PSRUWDQFHRI&DUERQ'LR[LGHLQ*OREDO:DUPLQJ  2WKHU*UHHQKRXVH*DVHV  ,PSOLFDWLRQVRI*OREDO:DUPLQJ  ,QGLFDWRUVRI*OREDO:DUPLQJ  *OREDO3HUVSHFWLYHVRQ*UHHQKRXVH(IIHFW 4XHVWLRQV 5HIHUHQFHV

          

 2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH  2]RQHLQWKH(QYLURQPHQW  'HVWUXFWLRQRI6WUDWRVSKHULF2]RQH  &KORURIOXRURFDUERQV  &)&VLQWKH(QYLURQPHQW  )XWXUH$WPRVSKHULF&RQFHQWUDWLRQVRI&)&V  0HFKDQLVPRI&)&'HJUDGDWLRQ  (IIHFWRI*UHHQKRXVH*DVHVRQ2]RQH&RQFHQWUDWLRQ  2WKHU+DORJHQ&RPSRXQGV  3URELQJWKH2]RQH/D\HU  (IIHFWRI2]RQH'HSOHWLRQ  3URWHFWLRQRI2]RQH/D\HU 4XHVWLRQV 5HIHUHQFHV

             

 2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH  2]RQHLQWKH(QYLURQPHQW  'HVWUXFWLRQRI6WUDWRVSKHULF2]RQH  &KORURIOXRURFDUERQV  &)&VLQWKH(QYLURQPHQW  )XWXUH$WPRVSKHULF&RQFHQWUDWLRQVRI&)&V  0HFKDQLVPRI&)&'HJUDGDWLRQ  (IIHFWRI*UHHQKRXVH*DVHVRQ2]RQH&RQFHQWUDWLRQ  2WKHU+DORJHQ&RPSRXQGV  3URELQJWKH2]RQH/D\HU  (IIHFWRI2]RQH'HSOHWLRQ  3URWHFWLRQRI2]RQH/D\HU 4XHVWLRQV 5HIHUHQFHV

             

 $FLG5DLQ  6RXUFHVRI$FLG5DLQ  7KH&KHPLVWU\RI$FLG5DLQ  5HDFWLRQVLQWKH'URSOHWV  2[LGDWLRQRI12WR1LWULF$FLG  (IIHFWRI$PPRQLD  $FLG'HSRVLWLRQ3URFHVVHV  9RODWLOH2UJDQLF&RPSRQHQWV  2WKHU&KHPLFDOV  +\GURJHQ6XOSKLGH  $FLG)RJ  $FLG5DLQ±*OREDO6FHQDULR  $FLG5DLQLQ,QGLD  (IIHFWVRI$FLG5DLQ  5HPHGLDO0HDVXUHV 4XHVWLRQV 5HIHUHQFHV

                

 $FLG5DLQ  6RXUFHVRI$FLG5DLQ  7KH&KHPLVWU\RI$FLG5DLQ  5HDFWLRQVLQWKH'URSOHWV  2[LGDWLRQRI12WR1LWULF$FLG  (IIHFWRI$PPRQLD  $FLG'HSRVLWLRQ3URFHVVHV  9RODWLOH2UJDQLF&RPSRQHQWV  2WKHU&KHPLFDOV  +\GURJHQ6XOSKLGH  $FLG)RJ  $FLG5DLQ±*OREDO6FHQDULR  $FLG5DLQLQ,QGLD  (IIHFWVRI$FLG5DLQ  5HPHGLDO0HDVXUHV 4XHVWLRQV 5HIHUHQFHV

                

[YL &RQWHQWV  *OREDO7HPSHUDWXUH0RGHOV  7KH*UHHQKRXVH(IIHFW  3ODQHWDU\(QHUJ\'LVWULEXWLRQV  &OLPDWH&KDQJH9DULDELOLW\  7KH5ROHDQG,PSRUWDQFHRI&DUERQ'LR[LGHLQ*OREDO:DUPLQJ  2WKHU*UHHQKRXVH*DVHV  ,PSOLFDWLRQVRI*OREDO:DUPLQJ  ,QGLFDWRUVRI*OREDO:DUPLQJ  *OREDO3HUVSHFWLYHVRQ*UHHQKRXVH(IIHFW 4XHVWLRQV 5HIHUHQFHV

[YL &RQWHQWV           

 *OREDO7HPSHUDWXUH0RGHOV  7KH*UHHQKRXVH(IIHFW  3ODQHWDU\(QHUJ\'LVWULEXWLRQV  &OLPDWH&KDQJH9DULDELOLW\  7KH5ROHDQG,PSRUWDQFHRI&DUERQ'LR[LGHLQ*OREDO:DUPLQJ  2WKHU*UHHQKRXVH*DVHV  ,PSOLFDWLRQVRI*OREDO:DUPLQJ  ,QGLFDWRUVRI*OREDO:DUPLQJ  *OREDO3HUVSHFWLYHVRQ*UHHQKRXVH(IIHFW 4XHVWLRQV 5HIHUHQFHV

          

 2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH  2]RQHLQWKH(QYLURQPHQW  'HVWUXFWLRQRI6WUDWRVSKHULF2]RQH  &KORURIOXRURFDUERQV  &)&VLQWKH(QYLURQPHQW  )XWXUH$WPRVSKHULF&RQFHQWUDWLRQVRI&)&V  0HFKDQLVPRI&)&'HJUDGDWLRQ  (IIHFWRI*UHHQKRXVH*DVHVRQ2]RQH&RQFHQWUDWLRQ  2WKHU+DORJHQ&RPSRXQGV  3URELQJWKH2]RQH/D\HU  (IIHFWRI2]RQH'HSOHWLRQ  3URWHFWLRQRI2]RQH/D\HU 4XHVWLRQV 5HIHUHQFHV

             

 2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH  2]RQHLQWKH(QYLURQPHQW  'HVWUXFWLRQRI6WUDWRVSKHULF2]RQH  &KORURIOXRURFDUERQV  &)&VLQWKH(QYLURQPHQW  )XWXUH$WPRVSKHULF&RQFHQWUDWLRQVRI&)&V  0HFKDQLVPRI&)&'HJUDGDWLRQ  (IIHFWRI*UHHQKRXVH*DVHVRQ2]RQH&RQFHQWUDWLRQ  2WKHU+DORJHQ&RPSRXQGV  3URELQJWKH2]RQH/D\HU  (IIHFWRI2]RQH'HSOHWLRQ  3URWHFWLRQRI2]RQH/D\HU 4XHVWLRQV 5HIHUHQFHV

             

 $FLG5DLQ  6RXUFHVRI$FLG5DLQ  7KH&KHPLVWU\RI$FLG5DLQ  5HDFWLRQVLQWKH'URSOHWV  2[LGDWLRQRI12WR1LWULF$FLG  (IIHFWRI$PPRQLD  $FLG'HSRVLWLRQ3URFHVVHV  9RODWLOH2UJDQLF&RPSRQHQWV  2WKHU&KHPLFDOV  +\GURJHQ6XOSKLGH  $FLG)RJ  $FLG5DLQ±*OREDO6FHQDULR  $FLG5DLQLQ,QGLD  (IIHFWVRI$FLG5DLQ  5HPHGLDO0HDVXUHV 4XHVWLRQV 5HIHUHQFHV

                

 $FLG5DLQ  6RXUFHVRI$FLG5DLQ  7KH&KHPLVWU\RI$FLG5DLQ  5HDFWLRQVLQWKH'URSOHWV  2[LGDWLRQRI12WR1LWULF$FLG  (IIHFWRI$PPRQLD  $FLG'HSRVLWLRQ3URFHVVHV  9RODWLOH2UJDQLF&RPSRQHQWV  2WKHU&KHPLFDOV  +\GURJHQ6XOSKLGH  $FLG)RJ  $FLG5DLQ±*OREDO6FHQDULR  $FLG5DLQLQ,QGLD  (IIHFWVRI$FLG5DLQ  5HPHGLDO0HDVXUHV 4XHVWLRQV 5HIHUHQFHV

                

&RQWHQWV  1RLVH3ROOXWLRQ  1DWXUHRI6RXQG  6RXQG 3UHVVXUH  6RXQG 3RZHU  6RXQG,QWHQVLW\  /RXGQHVV  6RXQG3URSDJDWLRQLQ$LU  ,QGRRU6RXQG3URSDJDWLRQ  0HDVXUHPHQWRI6RXQG  6RXUFHVRI1RLVHLQWKH(QYLURQPHQW  ,QGXVWULDO1RLVH&RQWURO  (IIHFWVRI1RLVHRQ+XPDQV  1RLVH3ROOXWLRQLQ,QGLD  1RLVH&RQWURO&ULWHULD 4XHVWLRQV 5HIHUHQFHV

[YLL                

3DUW,9$LU3ROOXWLRQ0DQDJHPHQW

&RQWHQWV  1RLVH3ROOXWLRQ  1DWXUHRI6RXQG  6RXQG 3UHVVXUH  6RXQG 3RZHU  6RXQG,QWHQVLW\  /RXGQHVV  6RXQG3URSDJDWLRQLQ$LU  ,QGRRU6RXQG3URSDJDWLRQ  0HDVXUHPHQWRI6RXQG  6RXUFHVRI1RLVHLQWKH(QYLURQPHQW  ,QGXVWULDO1RLVH&RQWURO  (IIHFWVRI1RLVHRQ+XPDQV  1RLVH3ROOXWLRQLQ,QGLD  1RLVH&RQWURO&ULWHULD 4XHVWLRQV 5HIHUHQFHV

[YLL                

3DUW,9$LU3ROOXWLRQ0DQDJHPHQW

 0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ  (QYLURQPHQWDQG+HDOWK  3DUWLFXODWHV  6XOSKXU'LR[LGH  &DUERQ0RQR[LGH  +\GURFDUERQVDQG2UJDQLFV  +\GURJHQ6XOSKLGH  $PPRQLD  1LWURJHQ2[LGHV  )OXRULGHV  2]RQH  6HFRQGDU\$LU3ROOXWDQWV  /HDG  $UVHQLF  &DGPLXP  1LFNHO  0HUFXU\  %HU\OOLXP  $VEHVWRV  2WKHU 7R[LF 6XEVWDQFHV 4XHVWLRQV 5HIHUHQFHV

                     

 0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ  (QYLURQPHQWDQG+HDOWK  3DUWLFXODWHV  6XOSKXU'LR[LGH  &DUERQ0RQR[LGH  +\GURFDUERQVDQG2UJDQLFV  +\GURJHQ6XOSKLGH  $PPRQLD  1LWURJHQ2[LGHV  )OXRULGHV  2]RQH  6HFRQGDU\$LU3ROOXWDQWV  /HDG  $UVHQLF  &DGPLXP  1LFNHO  0HUFXU\  %HU\OOLXP  $VEHVWRV  2WKHU 7R[LF 6XEVWDQFHV 4XHVWLRQV 5HIHUHQFHV

                     

 $LU3ROOXWLRQLQ,QGLDDQGWKH:RUOG  0HXVH9DOOH\  /RQGRQ

  

 $LU3ROOXWLRQLQ,QGLDDQGWKH:RUOG  0HXVH9DOOH\  /RQGRQ

  

&RQWHQWV  1RLVH3ROOXWLRQ  1DWXUHRI6RXQG  6RXQG 3UHVVXUH  6RXQG 3RZHU  6RXQG,QWHQVLW\  /RXGQHVV  6RXQG3URSDJDWLRQLQ$LU  ,QGRRU6RXQG3URSDJDWLRQ  0HDVXUHPHQWRI6RXQG  6RXUFHVRI1RLVHLQWKH(QYLURQPHQW  ,QGXVWULDO1RLVH&RQWURO  (IIHFWVRI1RLVHRQ+XPDQV  1RLVH3ROOXWLRQLQ,QGLD  1RLVH&RQWURO&ULWHULD 4XHVWLRQV 5HIHUHQFHV

[YLL                

3DUW,9$LU3ROOXWLRQ0DQDJHPHQW

&RQWHQWV  1RLVH3ROOXWLRQ  1DWXUHRI6RXQG  6RXQG 3UHVVXUH  6RXQG 3RZHU  6RXQG,QWHQVLW\  /RXGQHVV  6RXQG3URSDJDWLRQLQ$LU  ,QGRRU6RXQG3URSDJDWLRQ  0HDVXUHPHQWRI6RXQG  6RXUFHVRI1RLVHLQWKH(QYLURQPHQW  ,QGXVWULDO1RLVH&RQWURO  (IIHFWVRI1RLVHRQ+XPDQV  1RLVH3ROOXWLRQLQ,QGLD  1RLVH&RQWURO&ULWHULD 4XHVWLRQV 5HIHUHQFHV

[YLL                

3DUW,9$LU3ROOXWLRQ0DQDJHPHQW

 0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ  (QYLURQPHQWDQG+HDOWK  3DUWLFXODWHV  6XOSKXU'LR[LGH  &DUERQ0RQR[LGH  +\GURFDUERQVDQG2UJDQLFV  +\GURJHQ6XOSKLGH  $PPRQLD  1LWURJHQ2[LGHV  )OXRULGHV  2]RQH  6HFRQGDU\$LU3ROOXWDQWV  /HDG  $UVHQLF  &DGPLXP  1LFNHO  0HUFXU\  %HU\OOLXP  $VEHVWRV  2WKHU 7R[LF 6XEVWDQFHV 4XHVWLRQV 5HIHUHQFHV

                     

 0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ  (QYLURQPHQWDQG+HDOWK  3DUWLFXODWHV  6XOSKXU'LR[LGH  &DUERQ0RQR[LGH  +\GURFDUERQVDQG2UJDQLFV  +\GURJHQ6XOSKLGH  $PPRQLD  1LWURJHQ2[LGHV  )OXRULGHV  2]RQH  6HFRQGDU\$LU3ROOXWDQWV  /HDG  $UVHQLF  &DGPLXP  1LFNHO  0HUFXU\  %HU\OOLXP  $VEHVWRV  2WKHU 7R[LF 6XEVWDQFHV 4XHVWLRQV 5HIHUHQFHV

                     

 $LU3ROOXWLRQLQ,QGLDDQGWKH:RUOG  0HXVH9DOOH\  /RQGRQ

  

 $LU3ROOXWLRQLQ,QGLDDQGWKH:RUOG  0HXVH9DOOH\  /RQGRQ

  

[YLLL &RQWHQWV

[YLLL &RQWHQWV

 %KRSDO*DV7UDJHG\  6HYHVR$FFLGHQW  7KH&KHUQRE\O1XFOHDU'LVDVWHU  7KH*RNDN$FFLGHQW  $LU3ROOXWLRQ*OREDO6FHQDULR  $LU3ROOXWLRQLQ,QGLD  )XWXUHRI$LU3ROOXWLRQ&RQWURO 4XHVWLRQV 5HIHUHQFHV

        

 $LU4XDOLW\(PLVVLRQ6WDQGDUGV/HJLVODWLRQDQG$GPLQLVWUDWLRQ  $LU3ROOXWLRQ&RQWURO6WDWXWHV  $LU3ROOXWLRQ6WDQGDUGV  $LU4XDOLW\&ULWHULD  7KH$LU$FW  'RPHVWLFDQG2WKHU6RXUFHV  6LJQLILFDQFHRI$LU3ROOXWLRQ&RQWURO$UHDV  (PLVVLRQ6WDQGDUGV  3HQDO3URYLVLRQVRIWKH$FW  6DOLHQW)HDWXUHVRIWKH$LU3UHYHQWLRQDQG&RQWURO RI3ROOXWLRQ $FW  7KH(QYLURQPHQW3URWHFWLRQ $FW  &RQFOXVLRQ 4XHVWLRQV 5HIHUHQFHV

        

 $LU3ROOXWLRQ,QGLFHVDQG6XUYH\V  $LU3ROOXWLRQ,QGH[  7KH3ROOXWLRQ6WDQGDUGV,QGH[  $LU3ROOXWLRQ6XUYH\  $LU3ROOXWLRQ,PSDFW$VVHVVPHQW 4XHVWLRQV 5HIHUHQFHV

 %KRSDO*DV7UDJHG\  6HYHVR$FFLGHQW  7KH&KHUQRE\O1XFOHDU'LVDVWHU  7KH*RNDN$FFLGHQW  $LU3ROOXWLRQ*OREDO6FHQDULR  $LU3ROOXWLRQLQ,QGLD  )XWXUHRI$LU3ROOXWLRQ&RQWURO 4XHVWLRQV 5HIHUHQFHV

        

    

 $LU4XDOLW\(PLVVLRQ6WDQGDUGV/HJLVODWLRQDQG$GPLQLVWUDWLRQ  $LU3ROOXWLRQ&RQWURO6WDWXWHV  $LU3ROOXWLRQ6WDQGDUGV  $LU4XDOLW\&ULWHULD  7KH$LU$FW  'RPHVWLFDQG2WKHU6RXUFHV  6LJQLILFDQFHRI$LU3ROOXWLRQ&RQWURO$UHDV  (PLVVLRQ6WDQGDUGV  3HQDO3URYLVLRQVRIWKH$FW  6DOLHQW)HDWXUHVRIWKH$LU3UHYHQWLRQDQG&RQWURO RI3ROOXWLRQ $FW  7KH(QYLURQPHQW3URWHFWLRQ $FW  &RQFOXVLRQ 4XHVWLRQV 5HIHUHQFHV

      

 $LU3ROOXWLRQ,QGLFHVDQG6XUYH\V  $LU3ROOXWLRQ,QGH[  7KH3ROOXWLRQ6WDQGDUGV,QGH[  $LU3ROOXWLRQ6XUYH\  $LU3ROOXWLRQ,PSDFW$VVHVVPHQW 4XHVWLRQV 5HIHUHQFHV

      

3DUW9$QDO\WLFDO$VSHFWV  7HFKQLTXHVIRUWKH$QDO\VLVRI$LU3ROOXWDQWV  *UDYLPHWULF$QDO\VLV  9ROXPHWULF$QDO\VLV  6SHFWURSKRWRPHWULF$QDO\VLV  7XUELGLPHWU\DQG1HSKHORPHWU\  )OXRULPHWU\  $WRPLF$EVRUSWLRQ6SHFWURPHWU\  ,QGXFWLYHO\&RXSOHG3ODVPD$WRPLF(PLVVLRQ6SHFWURPHWU\  ,QIUDUHG 6SHFWURVFRS\

        

    

3DUW9$QDO\WLFDO$VSHFWV         

[YLLL &RQWHQWV

 7HFKQLTXHVIRUWKH$QDO\VLVRI$LU3ROOXWDQWV  *UDYLPHWULF$QDO\VLV  9ROXPHWULF$QDO\VLV  6SHFWURSKRWRPHWULF$QDO\VLV  7XUELGLPHWU\DQG1HSKHORPHWU\  )OXRULPHWU\  $WRPLF$EVRUSWLRQ6SHFWURPHWU\  ,QGXFWLYHO\&RXSOHG3ODVPD$WRPLF(PLVVLRQ6SHFWURPHWU\  ,QIUDUHG 6SHFWURVFRS\

        

[YLLL &RQWHQWV

 %KRSDO*DV7UDJHG\  6HYHVR$FFLGHQW  7KH&KHUQRE\O1XFOHDU'LVDVWHU  7KH*RNDN$FFLGHQW  $LU3ROOXWLRQ*OREDO6FHQDULR  $LU3ROOXWLRQLQ,QGLD  )XWXUHRI$LU3ROOXWLRQ&RQWURO 4XHVWLRQV 5HIHUHQFHV

        

 $LU4XDOLW\(PLVVLRQ6WDQGDUGV/HJLVODWLRQDQG$GPLQLVWUDWLRQ  $LU3ROOXWLRQ&RQWURO6WDWXWHV  $LU3ROOXWLRQ6WDQGDUGV  $LU4XDOLW\&ULWHULD  7KH$LU$FW  'RPHVWLFDQG2WKHU6RXUFHV  6LJQLILFDQFHRI$LU3ROOXWLRQ&RQWURO$UHDV  (PLVVLRQ6WDQGDUGV  3HQDO3URYLVLRQVRIWKH$FW  6DOLHQW)HDWXUHVRIWKH$LU3UHYHQWLRQDQG&RQWURO RI3ROOXWLRQ $FW  7KH(QYLURQPHQW3URWHFWLRQ $FW  &RQFOXVLRQ 4XHVWLRQV 5HIHUHQFHV

        

 $LU3ROOXWLRQ,QGLFHVDQG6XUYH\V  $LU3ROOXWLRQ,QGH[  7KH3ROOXWLRQ6WDQGDUGV,QGH[  $LU3ROOXWLRQ6XUYH\  $LU3ROOXWLRQ,PSDFW$VVHVVPHQW 4XHVWLRQV 5HIHUHQFHV

                 

    

 $LU4XDOLW\(PLVVLRQ6WDQGDUGV/HJLVODWLRQDQG$GPLQLVWUDWLRQ  $LU3ROOXWLRQ&RQWURO6WDWXWHV  $LU3ROOXWLRQ6WDQGDUGV  $LU4XDOLW\&ULWHULD  7KH$LU$FW  'RPHVWLFDQG2WKHU6RXUFHV  6LJQLILFDQFHRI$LU3ROOXWLRQ&RQWURO$UHDV  (PLVVLRQ6WDQGDUGV  3HQDO3URYLVLRQVRIWKH$FW  6DOLHQW)HDWXUHVRIWKH$LU3UHYHQWLRQDQG&RQWURO RI3ROOXWLRQ $FW  7KH(QYLURQPHQW3URWHFWLRQ $FW  &RQFOXVLRQ 4XHVWLRQV 5HIHUHQFHV

      

 $LU3ROOXWLRQ,QGLFHVDQG6XUYH\V  $LU3ROOXWLRQ,QGH[  7KH3ROOXWLRQ6WDQGDUGV,QGH[  $LU3ROOXWLRQ6XUYH\  $LU3ROOXWLRQ,PSDFW$VVHVVPHQW 4XHVWLRQV 5HIHUHQFHV

      

3DUW9$QDO\WLFDO$VSHFWV  7HFKQLTXHVIRUWKH$QDO\VLVRI$LU3ROOXWDQWV  *UDYLPHWULF$QDO\VLV  9ROXPHWULF$QDO\VLV  6SHFWURSKRWRPHWULF$QDO\VLV  7XUELGLPHWU\DQG1HSKHORPHWU\  )OXRULPHWU\  $WRPLF$EVRUSWLRQ6SHFWURPHWU\  ,QGXFWLYHO\&RXSOHG3ODVPD$WRPLF(PLVVLRQ6SHFWURPHWU\  ,QIUDUHG 6SHFWURVFRS\

 %KRSDO*DV7UDJHG\  6HYHVR$FFLGHQW  7KH&KHUQRE\O1XFOHDU'LVDVWHU  7KH*RNDN$FFLGHQW  $LU3ROOXWLRQ*OREDO6FHQDULR  $LU3ROOXWLRQLQ,QGLD  )XWXUHRI$LU3ROOXWLRQ&RQWURO 4XHVWLRQV 5HIHUHQFHV

    

3DUW9$QDO\WLFDO$VSHFWV         

 7HFKQLTXHVIRUWKH$QDO\VLVRI$LU3ROOXWDQWV  *UDYLPHWULF$QDO\VLV  9ROXPHWULF$QDO\VLV  6SHFWURSKRWRPHWULF$QDO\VLV  7XUELGLPHWU\DQG1HSKHORPHWU\  )OXRULPHWU\  $WRPLF$EVRUSWLRQ6SHFWURPHWU\  ,QGXFWLYHO\&RXSOHG3ODVPD$WRPLF(PLVVLRQ6SHFWURPHWU\  ,QIUDUHG 6SHFWURVFRS\

        

&RQWHQWV

[L[

&RQWHQWV

[L[

 *DV&KURPDWRJUDSK\  +LJK3UHVVXUH/LTXLG&KURPDWRJUDSK\+3/&  (OHFWURFKHPLFDO7HFKQLTXHV  3RODURJUDSK\  1HXWURQ$FWLYDWLRQ$QDO\VLV  2WKHU7HFKQLTXHV 4XHVWLRQV 5HIHUHQFHV

       

 *DV&KURPDWRJUDSK\  +LJK3UHVVXUH/LTXLG&KURPDWRJUDSK\+3/&  (OHFWURFKHPLFDO7HFKQLTXHV  3RODURJUDSK\  1HXWURQ$FWLYDWLRQ$QDO\VLV  2WKHU7HFKQLTXHV 4XHVWLRQV 5HIHUHQFHV

       

 &KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV  $PPRQLDLQ$LU  +\GURJHQ6XOSKLGHLQ$LU  6XOSKXULF$FLG0LVWLQ$LU  )UHH&KORULQHLQ$LU  &DUERQ'LVXOSKLGHLQ$LU  7RWDO&U\VWDOOLQH6LOLFD4XDUW] LQ$LU  &RORULPHWULF0HWKRGIRU)UHH6LOLFD'HWHUPLQDWLRQ  0HWKDQRO  $URPDWLF+\GURFDUERQVLQ$LU  $FU\ORQLWULOHLQ$LU  )RUPDOGHK\GH

           

 &KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV  $PPRQLDLQ$LU  +\GURJHQ6XOSKLGHLQ$LU  6XOSKXULF$FLG0LVWLQ$LU  )UHH&KORULQHLQ$LU  &DUERQ'LVXOSKLGHLQ$LU  7RWDO&U\VWDOOLQH6LOLFD4XDUW] LQ$LU  &RORULPHWULF0HWKRGIRU)UHH6LOLFD'HWHUPLQDWLRQ  0HWKDQRO  $URPDWLF+\GURFDUERQVLQ$LU  $FU\ORQLWULOHLQ$LU  )RUPDOGHK\GH

           

$SSHQGL[ $SSHQGL[ $SSHQGL[

&RQYHUVLRQIURPSSPWR—JP 3K\VLFDO3URSHUWLHVRI)OXLGV 7KUHVKROG/LPLW9DOXHV7/9 IRU6RPH&RPPRQ SROOXWDQWV $SSHQGL[ 8VHIXO&RQYHUVLRQ)DFWRUV $SSHQGL[ &RQYHUVLRQ)DFWRUV $SSHQGL[ 1DWLRQDO$LU4XDOLW\0RQLWRULQJ3URJUDPPH1$03 $SSHQGL[ 1DWLRQDO$LU4XDOLW\0RQLWRULQJ3URJUDPPH1$03 'XULQJ±\HDUV LQ%DQJDORUH&LW\ $SSHQGL[ (QYLURQPHQWDO6WDQGDUGV9HKLFXODU([KDXVW $SSHQGL[ 6XPPDU\RIWKH5HYLVHG:+2$LU4XDOLW\*XLGHOLQHV IRU(XURSH $SSHQGL[ $PELHQW1RLVH6WDQGDUGV6FKHGXOH $SSHQGL[ /LVWRI,QGLDQ6WDQGDUGV5HODWLQJWR$LU3ROOXWLRQ $SSHQGL[ &ODVVLILFDWLRQRI,QGXVWULHV

 

$SSHQGL[ $SSHQGL[ $SSHQGL[

 

   

&RQYHUVLRQIURPSSPWR—JP 3K\VLFDO3URSHUWLHVRI)OXLGV 7KUHVKROG/LPLW9DOXHV7/9 IRU6RPH&RPPRQ SROOXWDQWV $SSHQGL[ 8VHIXO&RQYHUVLRQ)DFWRUV $SSHQGL[ &RQYHUVLRQ)DFWRUV $SSHQGL[ 1DWLRQDO$LU4XDOLW\0RQLWRULQJ3URJUDPPH1$03 $SSHQGL[ 1DWLRQDO$LU4XDOLW\0RQLWRULQJ3URJUDPPH1$03 'XULQJ±\HDUV LQ%DQJDORUH&LW\ $SSHQGL[ (QYLURQPHQWDO6WDQGDUGV9HKLFXODU([KDXVW $SSHQGL[ 6XPPDU\RIWKH5HYLVHG:+2$LU4XDOLW\*XLGHOLQHV IRU(XURSH $SSHQGL[ $PELHQW1RLVH6WDQGDUGV6FKHGXOH $SSHQGL[ /LVWRI,QGLDQ6WDQGDUGV5HODWLQJWR$LU3ROOXWLRQ $SSHQGL[ &ODVVLILFDWLRQRI,QGXVWULHV

1RWDWLRQV



1RWDWLRQV



,QGH[



,QGH[



&RQWHQWV

     

[L[

&RQWHQWV

         

[L[

 *DV&KURPDWRJUDSK\  +LJK3UHVVXUH/LTXLG&KURPDWRJUDSK\+3/&  (OHFWURFKHPLFDO7HFKQLTXHV  3RODURJUDSK\  1HXWURQ$FWLYDWLRQ$QDO\VLV  2WKHU7HFKQLTXHV 4XHVWLRQV 5HIHUHQFHV

       

 *DV&KURPDWRJUDSK\  +LJK3UHVVXUH/LTXLG&KURPDWRJUDSK\+3/&  (OHFWURFKHPLFDO7HFKQLTXHV  3RODURJUDSK\  1HXWURQ$FWLYDWLRQ$QDO\VLV  2WKHU7HFKQLTXHV 4XHVWLRQV 5HIHUHQFHV

       

 &KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV  $PPRQLDLQ$LU  +\GURJHQ6XOSKLGHLQ$LU  6XOSKXULF$FLG0LVWLQ$LU  )UHH&KORULQHLQ$LU  &DUERQ'LVXOSKLGHLQ$LU  7RWDO&U\VWDOOLQH6LOLFD4XDUW] LQ$LU  &RORULPHWULF0HWKRGIRU)UHH6LOLFD'HWHUPLQDWLRQ  0HWKDQRO  $URPDWLF+\GURFDUERQVLQ$LU  $FU\ORQLWULOHLQ$LU  )RUPDOGHK\GH

           

 &KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV  $PPRQLDLQ$LU  +\GURJHQ6XOSKLGHLQ$LU  6XOSKXULF$FLG0LVWLQ$LU  )UHH&KORULQHLQ$LU  &DUERQ'LVXOSKLGHLQ$LU  7RWDO&U\VWDOOLQH6LOLFD4XDUW] LQ$LU  &RORULPHWULF0HWKRGIRU)UHH6LOLFD'HWHUPLQDWLRQ  0HWKDQRO  $URPDWLF+\GURFDUERQVLQ$LU  $FU\ORQLWULOHLQ$LU  )RUPDOGHK\GH

           

$SSHQGL[ $SSHQGL[ $SSHQGL[

&RQYHUVLRQIURPSSPWR—JP 3K\VLFDO3URSHUWLHVRI)OXLGV 7KUHVKROG/LPLW9DOXHV7/9 IRU6RPH&RPPRQ SROOXWDQWV $SSHQGL[ 8VHIXO&RQYHUVLRQ)DFWRUV $SSHQGL[ &RQYHUVLRQ)DFWRUV $SSHQGL[ 1DWLRQDO$LU4XDOLW\0RQLWRULQJ3URJUDPPH1$03 $SSHQGL[ 1DWLRQDO$LU4XDOLW\0RQLWRULQJ3URJUDPPH1$03 'XULQJ±\HDUV LQ%DQJDORUH&LW\ $SSHQGL[ (QYLURQPHQWDO6WDQGDUGV9HKLFXODU([KDXVW $SSHQGL[ 6XPPDU\RIWKH5HYLVHG:+2$LU4XDOLW\*XLGHOLQHV IRU(XURSH $SSHQGL[ $PELHQW1RLVH6WDQGDUGV6FKHGXOH $SSHQGL[ /LVWRI,QGLDQ6WDQGDUGV5HODWLQJWR$LU3ROOXWLRQ $SSHQGL[ &ODVVLILFDWLRQRI,QGXVWULHV

 

$SSHQGL[ $SSHQGL[ $SSHQGL[

 

   

&RQYHUVLRQIURPSSPWR—JP 3K\VLFDO3URSHUWLHVRI)OXLGV 7KUHVKROG/LPLW9DOXHV7/9 IRU6RPH&RPPRQ SROOXWDQWV $SSHQGL[ 8VHIXO&RQYHUVLRQ)DFWRUV $SSHQGL[ &RQYHUVLRQ)DFWRUV $SSHQGL[ 1DWLRQDO$LU4XDOLW\0RQLWRULQJ3URJUDPPH1$03 $SSHQGL[ 1DWLRQDO$LU4XDOLW\0RQLWRULQJ3URJUDPPH1$03 'XULQJ±\HDUV LQ%DQJDORUH&LW\ $SSHQGL[ (QYLURQPHQWDO6WDQGDUGV9HKLFXODU([KDXVW $SSHQGL[ 6XPPDU\RIWKH5HYLVHG:+2$LU4XDOLW\*XLGHOLQHV IRU(XURSH $SSHQGL[ $PELHQW1RLVH6WDQGDUGV6FKHGXOH $SSHQGL[ /LVWRI,QGLDQ6WDQGDUGV5HODWLQJWR$LU3ROOXWLRQ $SSHQGL[ &ODVVLILFDWLRQRI,QGXVWULHV

1RWDWLRQV



1RWDWLRQV



,QGH[



,QGH[



     

         

3$57,

3$57,

,QWURGXFWLRQWR$LU3ROOXWLRQ

,QWURGXFWLRQWR$LU3ROOXWLRQ

3$57,

3$57,

,QWURGXFWLRQWR$LU3ROOXWLRQ

,QWURGXFWLRQWR$LU3ROOXWLRQ

&+$37(5

&+$37(5

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ

(QYLURQPHQW UHIHUV WR WKH DWPRVSKHUH K\GURVSKHUH OLWKRVSKHUH DQG ELRVSKHULF HQYHORSHV RI WKH HDUWK ,W LV EDVLFDOO\ D SK\VLRFKHPLFDO V\VWHP $GGLWLRQDOO\ HFRORJLFDOFRQVLGHUDWLRQVVXFKDVLQWHUDFWLRQRIOLYLQJRUJDQLVPVVXFKDVDQLPDOV SODQWV LQVHFWV EDFWHULD IXQJL DQG PDQ DUH DOVR SDUW RI WKH HQYLURQPHQW ,Q D ODUJHU VHQVH WKH HQYLURQPHQW LQFOXGHV DVWURQRPLFDO FXOWXUDO DQG DHVWKHWLF FRPSRQHQWV $OOOLYLQJRUJDQLVPVRQWKLVHDUWKKDYHHYROYHGEDVHGRQDZHOOGHYHORSHG DWPRVSKHUH ODQG DQG ZDWHU V\VWHPV VSDQQLQJ RYHU  PLOOLRQ \HDUV 7KH HQYLURQPHQWDVZHKDYHLQKHULWHGWRGD\KDVEHHQHYROYHGE\WKHZHDWKHULQJRI URFNVDQGVXEMHFWHGWRWKHDFWLRQRIZLQGDQGUDLQRYHUDQDSSUR[LPDWHO\HTXDO OHQJWKRIWLPH7KHUHIRUHPRVWRIWKHVROXEOHPDWWHUSUHVHQWRQWKHVXUIDFHRIWKH VRLOPXVWKDYHEHHQZDVKHGDZD\LQWRWKHZDWHUZD\VDQGXOWLPDWHO\LQWRWKHVHDV +HQFHWKHUHLVYHU\OLWWOHVROXEOHPDWWHUOHIWRQWKHVXUIDFHRIWKHQDWXUDOVRLOV :HDWKHULQJRIURFNVLQWURGXFHVYDULRXVWUDFHHOHPHQWVLQWKHWRSVRLOWKDWFRQVWLWXWH WKHFRPSRVLWLRQRIWKHOD\HURIWKHORRVHVRLO)XUWKHUWKH\DUHDOVRKHOGLQWKH FU\VWDOODWWLFHVDQGKHQFHRQO\DVPDOOIUDFWLRQRIWKHWRWDOWUDFHHOHPHQWVLVDYDLODEOH IRUSODQWV 6LPLODUO\WKHULYHUVVXUIDFHZDWHUVWUHDPVDQGODNHVDOVRPXVWFRQWDLQYHU\ ORZTXDQWLWLHVRIPHWDOLRQV7KHDLUHQYHORSHRIRXUSODQHWWLOODERXW\HDUVDJR KDGUHWDLQHGHVVHQWLDOO\WKHVDPHFRPSRVLWLRQDVWKDWRIYLUJLQDWPRVSKHUHIRUPHG HRQVDJR7KHUHIRUHDOOWKHSODQWDQGDQLPDOOLIHLQFOXGLQJPDQKDVHYROYHGDJDLQVW WKLVEDFNJURXQGRIIRRGVXSSO\EDVHGRQYLUJLQVRLOSXUHZDWHUDQGXQGLVWXUEHG HQYLURQPHQW7KHLQWHUQDOELRFKHPLVWU\RIWKHSODQWVDQGDQLPDOVLVDOVRDWWXQHGWR WKHSUHVHQFHRIDEXQGDQFHRIR[\JHQQLWURJHQZDWHUFDUERQGLR[LGHDQGRQO\ PLFURJUDPOHYHOVRIHVVHQWLDOWUDFHQXWULHQWHOHPHQWVVXFKDVERURQFRSSHU]LQF FREDOW HWF :H PXVW DOVR WDNH LQWR DFFRXQW WKH QHDU WRWDO DEVHQFH RI JDVHRXV SROOXWDQWVVXFKDVFDUERQPRQR[LGHVXOSKXUGLR[LGHQLWURJHQR[LGHVKDORJHQV DQGWR[LFPHWDOLRQVVXFKDVOHDGDUVHQLFPHUFXU\HWFLQRXUHQYLURQPHQW $VDQLQWHOOLJHQWDQGLQTXLVLWLYHVSHFLHVPDQKDVVRXJKWWRLPSURYHWKHTXDOLW\ RIOLIHDOOWKHWLPH7KHSDFHRIFKDQJHKDVDFFHOHUDWHGRYHUODVWWKUHHKXQGUHG

(QYLURQPHQW UHIHUV WR WKH DWPRVSKHUH K\GURVSKHUH OLWKRVSKHUH DQG ELRVSKHULF HQYHORSHV RI WKH HDUWK ,W LV EDVLFDOO\ D SK\VLRFKHPLFDO V\VWHP $GGLWLRQDOO\ HFRORJLFDOFRQVLGHUDWLRQVVXFKDVLQWHUDFWLRQRIOLYLQJRUJDQLVPVVXFKDVDQLPDOV SODQWV LQVHFWV EDFWHULD IXQJL DQG PDQ DUH DOVR SDUW RI WKH HQYLURQPHQW ,Q D ODUJHU VHQVH WKH HQYLURQPHQW LQFOXGHV DVWURQRPLFDO FXOWXUDO DQG DHVWKHWLF FRPSRQHQWV $OOOLYLQJRUJDQLVPVRQWKLVHDUWKKDYHHYROYHGEDVHGRQDZHOOGHYHORSHG DWPRVSKHUH ODQG DQG ZDWHU V\VWHPV VSDQQLQJ RYHU  PLOOLRQ \HDUV 7KH HQYLURQPHQWDVZHKDYHLQKHULWHGWRGD\KDVEHHQHYROYHGE\WKHZHDWKHULQJRI URFNVDQGVXEMHFWHGWRWKHDFWLRQRIZLQGDQGUDLQRYHUDQDSSUR[LPDWHO\HTXDO OHQJWKRIWLPH7KHUHIRUHPRVWRIWKHVROXEOHPDWWHUSUHVHQWRQWKHVXUIDFHRIWKH VRLOPXVWKDYHEHHQZDVKHGDZD\LQWRWKHZDWHUZD\VDQGXOWLPDWHO\LQWRWKHVHDV +HQFHWKHUHLVYHU\OLWWOHVROXEOHPDWWHUOHIWRQWKHVXUIDFHRIWKHQDWXUDOVRLOV :HDWKHULQJRIURFNVLQWURGXFHVYDULRXVWUDFHHOHPHQWVLQWKHWRSVRLOWKDWFRQVWLWXWH WKHFRPSRVLWLRQRIWKHOD\HURIWKHORRVHVRLO)XUWKHUWKH\DUHDOVRKHOGLQWKH FU\VWDOODWWLFHVDQGKHQFHRQO\DVPDOOIUDFWLRQRIWKHWRWDOWUDFHHOHPHQWVLVDYDLODEOH IRUSODQWV 6LPLODUO\WKHULYHUVVXUIDFHZDWHUVWUHDPVDQGODNHVDOVRPXVWFRQWDLQYHU\ ORZTXDQWLWLHVRIPHWDOLRQV7KHDLUHQYHORSHRIRXUSODQHWWLOODERXW\HDUVDJR KDGUHWDLQHGHVVHQWLDOO\WKHVDPHFRPSRVLWLRQDVWKDWRIYLUJLQDWPRVSKHUHIRUPHG HRQVDJR7KHUHIRUHDOOWKHSODQWDQGDQLPDOOLIHLQFOXGLQJPDQKDVHYROYHGDJDLQVW WKLVEDFNJURXQGRIIRRGVXSSO\EDVHGRQYLUJLQVRLOSXUHZDWHUDQGXQGLVWXUEHG HQYLURQPHQW7KHLQWHUQDOELRFKHPLVWU\RIWKHSODQWVDQGDQLPDOVLVDOVRDWWXQHGWR WKHSUHVHQFHRIDEXQGDQFHRIR[\JHQQLWURJHQZDWHUFDUERQGLR[LGHDQGRQO\ PLFURJUDPOHYHOVRIHVVHQWLDOWUDFHQXWULHQWHOHPHQWVVXFKDVERURQFRSSHU]LQF FREDOW HWF :H PXVW DOVR WDNH LQWR DFFRXQW WKH QHDU WRWDO DEVHQFH RI JDVHRXV SROOXWDQWVVXFKDVFDUERQPRQR[LGHVXOSKXUGLR[LGHQLWURJHQR[LGHVKDORJHQV DQGWR[LFPHWDOLRQVVXFKDVOHDGDUVHQLFPHUFXU\HWFLQRXUHQYLURQPHQW $VDQLQWHOOLJHQWDQGLQTXLVLWLYHVSHFLHVPDQKDVVRXJKWWRLPSURYHWKHTXDOLW\ RIOLIHDOOWKHWLPH7KHSDFHRIFKDQJHKDVDFFHOHUDWHGRYHUODVWWKUHHKXQGUHG

&+$37(5

&+$37(5

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ

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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

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¶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¶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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

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¶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¶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

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



GLVHDVHV DQG ILQDOO\ GHDWK LQ DFXWH H[SRVXUHV IRU DQLPDOV DQG KXPDQ EHLQJV $WPRVSKHULFSDUWLFOHVFDXVHDEUDVLRQGLUHFWO\DQGLQGLUHFWFKHPLFDODWWDFNVLQGXFH HOHFWURFKHPLFDO FRUURVLRQ RQ IHUURXV DQG QRQIHUURXV PHWDOV OHDWKHU UXEEHU SODVWLFVJODVVDQGFHUDPLFVUHVXOWLQJLQHQRUPRXVHFRQRPLFGDPDJHWRWKHWXQH RIPLOOLRQVRIGROODUVHYHU\\HDU

GLVHDVHV DQG ILQDOO\ GHDWK LQ DFXWH H[SRVXUHV IRU DQLPDOV DQG KXPDQ EHLQJV $WPRVSKHULFSDUWLFOHVFDXVHDEUDVLRQGLUHFWO\DQGLQGLUHFWFKHPLFDODWWDFNVLQGXFH HOHFWURFKHPLFDO FRUURVLRQ RQ IHUURXV DQG QRQIHUURXV PHWDOV OHDWKHU UXEEHU SODVWLFVJODVVDQGFHUDPLFVUHVXOWLQJLQHQRUPRXVHFRQRPLFGDPDJHWRWKHWXQH RIPLOOLRQVRIGROODUVHYHU\\HDU

 +,6725@0RVWRIWKLV ZDWHUYDSRXUKDVFRQGHQVHGLQWRWKHODNHVDQGRFHDQV,QWHQVHERPEDUGPHQWRI WKHVHPROHFXOHVE\89UDGLDWLRQOLJKWQLQJDQGQXFOHDUHQHUJ\WKHQLQLWLDWHGDFKDLQ RI FRPSOH[ FKHPLFDO UHDFWLRQV WR SURGXFH ODUJHU PROHFXOHV ZLWK KLJKHU HQHUJ\ FRQWHQWZKLFKVXEVHTXHQWO\HYROYHGLQWROLIHIRUPVFDSDEOHRISURGXFLQJRUJDQLF PDWWHUDQGR[\JHQE\SKRWRV\QWKHVLVURXWH &2+2KYo>&+2@2n



&RQFHQWUDWLRQ 9RO    ± î± î± î± î± î± î± î± î± 7UDFHV î± î± î± 7UDFHV î± î± î± î± î± î± î±

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îJFP>@0RVWRIWKLV ZDWHUYDSRXUKDVFRQGHQVHGLQWRWKHODNHVDQGRFHDQV,QWHQVHERPEDUGPHQWRI WKHVHPROHFXOHVE\89UDGLDWLRQOLJKWQLQJDQGQXFOHDUHQHUJ\WKHQLQLWLDWHGDFKDLQ RI FRPSOH[ FKHPLFDO UHDFWLRQV WR SURGXFH ODUJHU PROHFXOHV ZLWK KLJKHU HQHUJ\ FRQWHQWZKLFKVXEVHTXHQWO\HYROYHGLQWROLIHIRUPVFDSDEOHRISURGXFLQJRUJDQLF PDWWHUDQGR[\JHQE\SKRWRV\QWKHVLVURXWH &2+2KYo>&+2@2n



 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

$SDUW IURP SKRWRV\QWKHVLV R[\JHQ DOVR FRXOG KDYH EHHQ SURGXFHG E\ WKH EUHDNGRZQRIZDWHUYDSRXULQWKHDWPRVSKHUHE\HOHFWULFDOGLVFKDUJHDQGVRODU UDGLDWLRQ7KLVQDVFHQWR[\JHQPXVWKDYHEHHQYHU\UHDFWLYHDQGWR[LFZKLFKZDV VXEVHTXHQWO\DEVRUEHGE\IHUURXVLRQVWRIRUPIHUULFR[LGHDFFRUGLQJWRWKHUHDFWLRQ

$SDUW IURP SKRWRV\QWKHVLV R[\JHQ DOVR FRXOG KDYH EHHQ SURGXFHG E\ WKH EUHDNGRZQRIZDWHUYDSRXULQWKHDWPRVSKHUHE\HOHFWULFDOGLVFKDUJHDQGVRODU UDGLDWLRQ7KLVQDVFHQWR[\JHQPXVWKDYHEHHQYHU\UHDFWLYHDQGWR[LFZKLFKZDV VXEVHTXHQWO\DEVRUEHGE\IHUURXVLRQVWRIRUPIHUULFR[LGHDFFRUGLQJWRWKHUHDFWLRQ

O2

2

NO ,N O

ea Oc

ns

Mo

Ozone, oxygen O2

3

Riv

Earth’s Core

ers

O

x

ce

M

CO2

Rain

SP

O2

an

s

s an

Mo

x

O

SPM CO 2

O2

ts Fores

s ain unt

Volcanoes Lake s

Riv

Earth’s Core

O2 CO 2 No

2

O2 CO 2 No

H

H

Volcanoes Lake s

SPM

x

O

N2 2

H2 O

O2

H 2O

O2

, O2 ing N 2

O2

, NO SO 2

O2

ts

Fores

s ain unt

lightn

SPM

CO2

Rain

CO 2

SPM

N2 H 2O

SPM

O2

NO

SPM

O2

tos

re

®O

, NO SO 2

a Str

e ph

O O2 +

H2 O

, O2 ing N 2

H2O CO2 NH3, CO x

lightn

O2

2

tos

re

Ozone, oxygen O2

3

3ODQW FHOOV VLQJOH FHOO OLIH IRUPV EDFWHULD HWF GHYHORSHG PXFK ODWHU DQG PHGLDWHGWKHUHOHDVHRIPROHFXODUR[\JHQLQDIRUPZHEUHDWKHHYHU\GD\&XUUHQW WKHRULHVKROGWKDWSKRWRV\QWKHVLVPXVWKDYHSOD\HGDPDMRUUROHLQWKHV\QWKHVLVRI UHVSLUDEOHR[\JHQ$ERXWRIWKHSUHVHQWDPRXQWRIR[\JHQKDGDFFXPXODWHGLQ WKHDWPRVSKHUHî\HDUVDJRZKLFKZDVHQRXJKWRVFUHHQWKHKDUPIXO89 UDGLDWLRQV DQG VSXUUHG WKH GHYHORSPHQW RI QHZ OLIH IRUPV LQ WKH RFHDQV $SSUR[LPDWHO\E\î\HDUVDJRWKHHDUWK¶VR[\JHQOHYHOVUHDFKHGDERXW RIWKHDWPRVSKHUHDQGVXIILFLHQWR]RQHZDVSUHVHQWLQWKHDWPRVSKHUHWRSHUPLW WKHHYROXWLRQRIOLIHRQODQG0RVWRIWKHR[\JHQSURGXFHGWLOOGDWHKDVEHHQXVHG XSLQWKHR[LGDWLRQRIWKHURFNVDQGRWKHUVXUIDFHPDWHULDOVRQWKHHDUWK+RZHYHU PRUHR[\JHQLVEHLQJSURGXFHGE\SKRWRV\QWKHVLVDQGSKRWRGLVVRFLDWLRQURXWHV *UDGXDOO\WKHDFFXPXODWHGR[\JHQPXVWKDYHUHDFKHGDFULWLFDOVWDJHDQGOHGWR WKHV\QWKHVLVRIR]RQHLQWKHVWUDWRVSKHUHZKLFKH[WHQGVIURP±NLORPHWUHV DERYHWKHHDUWK7KHVHUHDFWLRQVDUHSUHVHQWHGLQ)LJ

NO ,N O

a Str

e ph

®O



NO

3ODQW FHOOV VLQJOH FHOO OLIH IRUPV EDFWHULD HWF GHYHORSHG PXFK ODWHU DQG PHGLDWHGWKHUHOHDVHRIPROHFXODUR[\JHQLQDIRUPZHEUHDWKHHYHU\GD\&XUUHQW WKHRULHVKROGWKDWSKRWRV\QWKHVLVPXVWKDYHSOD\HGDPDMRUUROHLQWKHV\QWKHVLVRI UHVSLUDEOHR[\JHQ$ERXWRIWKHSUHVHQWDPRXQWRIR[\JHQKDGDFFXPXODWHGLQ WKHDWPRVSKHUHî\HDUVDJRZKLFKZDVHQRXJKWRVFUHHQWKHKDUPIXO89 UDGLDWLRQV DQG VSXUUHG WKH GHYHORSPHQW RI QHZ OLIH IRUPV LQ WKH RFHDQV $SSUR[LPDWHO\E\î\HDUVDJRWKHHDUWK¶VR[\JHQOHYHOVUHDFKHGDERXW RIWKHDWPRVSKHUHDQGVXIILFLHQWR]RQHZDVSUHVHQWLQWKHDWPRVSKHUHWRSHUPLW WKHHYROXWLRQRIOLIHRQODQG0RVWRIWKHR[\JHQSURGXFHGWLOOGDWHKDVEHHQXVHG XSLQWKHR[LGDWLRQRIWKHURFNVDQGRWKHUVXUIDFHPDWHULDOVRQWKHHDUWK+RZHYHU PRUHR[\JHQLVEHLQJSURGXFHGE\SKRWRV\QWKHVLVDQGSKRWRGLVVRFLDWLRQURXWHV *UDGXDOO\WKHDFFXPXODWHGR[\JHQPXVWKDYHUHDFKHGDFULWLFDOVWDJHDQGOHGWR WKHV\QWKHVLVRIR]RQHLQWKHVWUDWRVSKHUHZKLFKH[WHQGVIURP±NLORPHWUHV DERYHWKHHDUWK7KHVHUHDFWLRQVDUHSUHVHQWHGLQ)LJ

O O2 +

)H2+2o)H2+



H2O CO2 NH3, CO x

)H2+2o)H2+

ers

O ce

x

M

SP

an s

e Oc

)LJ  6\QWKHVLV RI DWPRVSKHULF JDVHV

)LJ  6\QWKHVLV RI DWPRVSKHULF JDVHV

 '(),1,7,212)$,532//87,21

 '(),1,7,212)$,532//87,21

(QHUJ\ SURGXFWLRQ ZDVWH GLVSRVDO DQG QDWXUDO GLVDVWHUV FDXVH HQYLURQPHQWDO GHJUDGDWLRQ 7KH LQWHUSUHWDWLRQ RI VXFK RFFXUUHQFHV LV H[WUHPHO\ GLIILFXOW DQG WKURZVXSLQWHUHVWLQJTXHVWLRQV)RUH[DPSOH

(QHUJ\ SURGXFWLRQ ZDVWH GLVSRVDO DQG QDWXUDO GLVDVWHUV FDXVH HQYLURQPHQWDO GHJUDGDWLRQ 7KH LQWHUSUHWDWLRQ RI VXFK RFFXUUHQFHV LV H[WUHPHO\ GLIILFXOW DQG WKURZVXSLQWHUHVWLQJTXHVWLRQV)RUH[DPSOH

L

L

+RZPXFKRIWKHJOREDOJDVHRXVHPLVVLRQVDUHUHPRYHGE\QDWXUDOSURFHVVHV DQGZKDWDUHWKHSUHIHUUHGWHFKQLTXHVWRVHTXHVWHUFDUERQGLR[LGHDQGRWKHU JUHHQKRXVHJDVHV"

+RZPXFKRIWKHJOREDOJDVHRXVHPLVVLRQVDUHUHPRYHGE\QDWXUDOSURFHVVHV DQGZKDWDUHWKHSUHIHUUHGWHFKQLTXHVWRVHTXHVWHUFDUERQGLR[LGHDQGRWKHU JUHHQKRXVHJDVHV"

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

$SDUW IURP SKRWRV\QWKHVLV R[\JHQ DOVR FRXOG KDYH EHHQ SURGXFHG E\ WKH EUHDNGRZQRIZDWHUYDSRXULQWKHDWPRVSKHUHE\HOHFWULFDOGLVFKDUJHDQGVRODU UDGLDWLRQ7KLVQDVFHQWR[\JHQPXVWKDYHEHHQYHU\UHDFWLYHDQGWR[LFZKLFKZDV VXEVHTXHQWO\DEVRUEHGE\IHUURXVLRQVWRIRUPIHUULFR[LGHDFFRUGLQJWRWKHUHDFWLRQ

$SDUW IURP SKRWRV\QWKHVLV R[\JHQ DOVR FRXOG KDYH EHHQ SURGXFHG E\ WKH EUHDNGRZQRIZDWHUYDSRXULQWKHDWPRVSKHUHE\HOHFWULFDOGLVFKDUJHDQGVRODU UDGLDWLRQ7KLVQDVFHQWR[\JHQPXVWKDYHEHHQYHU\UHDFWLYHDQGWR[LFZKLFKZDV VXEVHTXHQWO\DEVRUEHGE\IHUURXVLRQVWRIRUPIHUULFR[LGHDFFRUGLQJWRWKHUHDFWLRQ

O2

ea Oc

ns

Mo

s ain unt

Riv

ers

O

x

ce

M

CO2

Rain

SP

O2

an

s

2

NO ,N O

)LJ  6\QWKHVLV RI DWPRVSKHULF JDVHV

s an

Mo

s ain unt

Volcanoes Lake s

Earth’s Core

x

O Riv

O2 CO 2 No

2

SPM CO 2

O2

ts Fores

H

O2 CO 2 No

SPM

x

O

N2 H 2O

, NO SO 2

ing

O2

N 2, O 2

O2

2

Volcanoes Lake s

Earth’s Core

lightn

Ozone, oxygen O2

3

O2

H

O2

CO 2 ts

Fores

ph

O2 +

SPM

CO2

Rain

SPM

N2 H 2O

SPM

O2

, NO SO 2

SPM

O2

tos

ere

O O®

H2 O

a Str

H2 O

ing

NO

lightn

N 2, O 2

H2O CO2 NH3, CO x

ph

O2

2

tos

O2 +

3ODQW FHOOV VLQJOH FHOO OLIH IRUPV EDFWHULD HWF GHYHORSHG PXFK ODWHU DQG PHGLDWHGWKHUHOHDVHRIPROHFXODUR[\JHQLQDIRUPZHEUHDWKHHYHU\GD\&XUUHQW WKHRULHVKROGWKDWSKRWRV\QWKHVLVPXVWKDYHSOD\HGDPDMRUUROHLQWKHV\QWKHVLVRI UHVSLUDEOHR[\JHQ$ERXWRIWKHSUHVHQWDPRXQWRIR[\JHQKDGDFFXPXODWHGLQ WKHDWPRVSKHUHî\HDUVDJRZKLFKZDVHQRXJKWRVFUHHQWKHKDUPIXO89 UDGLDWLRQV DQG VSXUUHG WKH GHYHORSPHQW RI QHZ OLIH IRUPV LQ WKH RFHDQV $SSUR[LPDWHO\E\î\HDUVDJRWKHHDUWK¶VR[\JHQOHYHOVUHDFKHGDERXW RIWKHDWPRVSKHUHDQGVXIILFLHQWR]RQHZDVSUHVHQWLQWKHDWPRVSKHUHWRSHUPLW WKHHYROXWLRQRIOLIHRQODQG0RVWRIWKHR[\JHQSURGXFHGWLOOGDWHKDVEHHQXVHG XSLQWKHR[LGDWLRQRIWKHURFNVDQGRWKHUVXUIDFHPDWHULDOVRQWKHHDUWK+RZHYHU PRUHR[\JHQLVEHLQJSURGXFHGE\SKRWRV\QWKHVLVDQGSKRWRGLVVRFLDWLRQURXWHV *UDGXDOO\WKHDFFXPXODWHGR[\JHQPXVWKDYHUHDFKHGDFULWLFDOVWDJHDQGOHGWR WKHV\QWKHVLVRIR]RQHLQWKHVWUDWRVSKHUHZKLFKH[WHQGVIURP±NLORPHWUHV DERYHWKHHDUWK7KHVHUHDFWLRQVDUHSUHVHQWHGLQ)LJ

NO ,N O

a Str

ere

Ozone, oxygen O2

3



NO

3ODQW FHOOV VLQJOH FHOO OLIH IRUPV EDFWHULD HWF GHYHORSHG PXFK ODWHU DQG PHGLDWHGWKHUHOHDVHRIPROHFXODUR[\JHQLQDIRUPZHEUHDWKHHYHU\GD\&XUUHQW WKHRULHVKROGWKDWSKRWRV\QWKHVLVPXVWKDYHSOD\HGDPDMRUUROHLQWKHV\QWKHVLVRI UHVSLUDEOHR[\JHQ$ERXWRIWKHSUHVHQWDPRXQWRIR[\JHQKDGDFFXPXODWHGLQ WKHDWPRVSKHUHî\HDUVDJRZKLFKZDVHQRXJKWRVFUHHQWKHKDUPIXO89 UDGLDWLRQV DQG VSXUUHG WKH GHYHORSPHQW RI QHZ OLIH IRUPV LQ WKH RFHDQV $SSUR[LPDWHO\E\î\HDUVDJRWKHHDUWK¶VR[\JHQOHYHOVUHDFKHGDERXW RIWKHDWPRVSKHUHDQGVXIILFLHQWR]RQHZDVSUHVHQWLQWKHDWPRVSKHUHWRSHUPLW WKHHYROXWLRQRIOLIHRQODQG0RVWRIWKHR[\JHQSURGXFHGWLOOGDWHKDVEHHQXVHG XSLQWKHR[LGDWLRQRIWKHURFNVDQGRWKHUVXUIDFHPDWHULDOVRQWKHHDUWK+RZHYHU PRUHR[\JHQLVEHLQJSURGXFHGE\SKRWRV\QWKHVLVDQGSKRWRGLVVRFLDWLRQURXWHV *UDGXDOO\WKHDFFXPXODWHGR[\JHQPXVWKDYHUHDFKHGDFULWLFDOVWDJHDQGOHGWR WKHV\QWKHVLVRIR]RQHLQWKHVWUDWRVSKHUHZKLFKH[WHQGVIURP±NLORPHWUHV DERYHWKHHDUWK7KHVHUHDFWLRQVDUHSUHVHQWHGLQ)LJ O O®

)H2+2o)H2+



H2O CO2 NH3, CO x

)H2+2o)H2+

ers

O ce

x

M

SP

an s

e Oc

)LJ  6\QWKHVLV RI DWPRVSKHULF JDVHV

 '(),1,7,212)$,532//87,21

 '(),1,7,212)$,532//87,21

(QHUJ\ SURGXFWLRQ ZDVWH GLVSRVDO DQG QDWXUDO GLVDVWHUV FDXVH HQYLURQPHQWDO GHJUDGDWLRQ 7KH LQWHUSUHWDWLRQ RI VXFK RFFXUUHQFHV LV H[WUHPHO\ GLIILFXOW DQG WKURZVXSLQWHUHVWLQJTXHVWLRQV)RUH[DPSOH

(QHUJ\ SURGXFWLRQ ZDVWH GLVSRVDO DQG QDWXUDO GLVDVWHUV FDXVH HQYLURQPHQWDO GHJUDGDWLRQ 7KH LQWHUSUHWDWLRQ RI VXFK RFFXUUHQFHV LV H[WUHPHO\ GLIILFXOW DQG WKURZVXSLQWHUHVWLQJTXHVWLRQV)RUH[DPSOH

L

L

+RZPXFKRIWKHJOREDOJDVHRXVHPLVVLRQVDUHUHPRYHGE\QDWXUDOSURFHVVHV DQGZKDWDUHWKHSUHIHUUHGWHFKQLTXHVWRVHTXHVWHUFDUERQGLR[LGHDQGRWKHU JUHHQKRXVHJDVHV"

+RZPXFKRIWKHJOREDOJDVHRXVHPLVVLRQVDUHUHPRYHGE\QDWXUDOSURFHVVHV DQGZKDWDUHWKHSUHIHUUHGWHFKQLTXHVWRVHTXHVWHUFDUERQGLR[LGHDQGRWKHU JUHHQKRXVHJDVHV"

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



LL

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

LL

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—J OHYHOV ,QWKHQRUPDOGU\DLUQLWURJHQR[\JHQDUJRQDQGFDUERQGLR[LGHFRQVWLWXWH E\YROXPH+RZHYHUWKHPRLVWXUHFRQWHQWRIWKHDWPRVSKHUHYDULHVIURP ± E\ YROXPH RI WKH WRWDO PL[WXUH 'HSHQGLQJ XSRQ WKH PRLVWXUH FRQWHQW FRQFHQWUDWLRQRIWKHRWKHUJDVHVSUHVHQWLQWKHDLUYDULHVRYHUDZLGHUDQJH7KH PHWKDQHFRQWHQWLQDLUYDULHVIURP±SSP2]RQHDQGQLWURJHQGLR[LGHHQWHUWKH DWPRVSKHUHE\WUDQVSRUWDWLRQIURPWKHVWUDWRVSKHUHDQGWUDFHVRIDPPRQLDHQWHU IURP GHFD\LQJ PDWWHU *LYHQ DOO WKHVH LQSXWV LW LV UHDOO\ GLIILFXOW WR DUULYH DW D XQLYHUVDOGHILQLWLRQRIDLUSROOXWLRQ$FFRUGLQJWRWKH(QJLQHHUV-RLQW&RXQFLODLU SROOXWLRQLVGHILQHGDV³ 7KHSUHVHQFHLQWKHRXWGRRUDWPRVSKHUHRIRQHRUPRUH FRQWDPLQDQWVVXFKDVGXVWIXPHVJDVPLVWRGRXUVPRNHRUYDSRXULQTXDQWLWLHV RIFKDUDFWHULVWLFVDQGRIGXUDWLRQVXFKDVWREHLQMXULRXVWRKXPDQSODQWRUDQLPDO OLIHRUWRSURSHUW\RUZKLFKXQUHDVRQDEO\LQWHUIHUHVZLWKWKHFRPIRUWDEOHHQMR\PHQW RIOLIHDQGSURSHUW\´7KLVGHILQLWLRQLVE\QRPHDQVFRPSOHWH$UL]RQD$LU3ROOXWLRQ &RQWURO5HJXODWLRQGHILQHVDLUSROOXWLRQDV³ 7KHSUHVHQFHLQWKHRXWGRRUDWPRVSKHUH RIRQHRUPRUHFRQWDPLQDQWVRUFRPELQDWLRQVWKHUHRILQVXFKTXDQWLWLHVDQGRI VXFKGXUDWLRQZKLFKPD\WHQGWREHLQMXULRXVWRKXPDQSODQWRUDQLPDOOLIHRU SURSHUW\´$FFRUGLQJWRWKLVGHILQLWLRQDLUFRQWDPLQDQWVLQFOXGHVPRNHYDSRXUV FKDUUHG SDSHU JULPH VRRW GXVW FDUERQ SDUWLFOHV IXPHV JDVHV PLVW RGRXUV SDUWLFXODWHPDWWHUUDGLRDFWLYHPDWHULDOVRUQR[LRXVFKHPLFDOVRUDQ\RWKHUPDWHULDO LQWKHRXWGRRUDWPRVSKHUH7KHUHDUHVRPHEOLQGVSRWVLQWKLVGHILQLWLRQDOVR)RU H[DPSOHWKHH[SUHVVLRQVVXFKDVµXQUHDVRQDEOHLQWHUIHUHQFHZLWKWKHFRPIRUWDEOH

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—J OHYHOV ,QWKHQRUPDOGU\DLUQLWURJHQR[\JHQDUJRQDQGFDUERQGLR[LGHFRQVWLWXWH E\YROXPH+RZHYHUWKHPRLVWXUHFRQWHQWRIWKHDWPRVSKHUHYDULHVIURP ± E\ YROXPH RI WKH WRWDO PL[WXUH 'HSHQGLQJ XSRQ WKH PRLVWXUH FRQWHQW FRQFHQWUDWLRQRIWKHRWKHUJDVHVSUHVHQWLQWKHDLUYDULHVRYHUDZLGHUDQJH7KH PHWKDQHFRQWHQWLQDLUYDULHVIURP±SSP2]RQHDQGQLWURJHQGLR[LGHHQWHUWKH DWPRVSKHUHE\WUDQVSRUWDWLRQIURPWKHVWUDWRVSKHUHDQGWUDFHVRIDPPRQLDHQWHU IURP GHFD\LQJ PDWWHU *LYHQ DOO WKHVH LQSXWV LW LV UHDOO\ GLIILFXOW WR DUULYH DW D XQLYHUVDOGHILQLWLRQRIDLUSROOXWLRQ$FFRUGLQJWRWKH(QJLQHHUV-RLQW&RXQFLODLU SROOXWLRQLVGHILQHGDV³ 7KHSUHVHQFHLQWKHRXWGRRUDWPRVSKHUHRIRQHRUPRUH FRQWDPLQDQWVVXFKDVGXVWIXPHVJDVPLVWRGRXUVPRNHRUYDSRXULQTXDQWLWLHV RIFKDUDFWHULVWLFVDQGRIGXUDWLRQVXFKDVWREHLQMXULRXVWRKXPDQSODQWRUDQLPDO OLIHRUWRSURSHUW\RUZKLFKXQUHDVRQDEO\LQWHUIHUHVZLWKWKHFRPIRUWDEOHHQMR\PHQW RIOLIHDQGSURSHUW\´7KLVGHILQLWLRQLVE\QRPHDQVFRPSOHWH$UL]RQD$LU3ROOXWLRQ &RQWURO5HJXODWLRQGHILQHVDLUSROOXWLRQDV³ 7KHSUHVHQFHLQWKHRXWGRRUDWPRVSKHUH RIRQHRUPRUHFRQWDPLQDQWVRUFRPELQDWLRQVWKHUHRILQVXFKTXDQWLWLHVDQGRI VXFKGXUDWLRQZKLFKPD\WHQGWREHLQMXULRXVWRKXPDQSODQWRUDQLPDOOLIHRU SURSHUW\´$FFRUGLQJWRWKLVGHILQLWLRQDLUFRQWDPLQDQWVLQFOXGHVPRNHYDSRXUV FKDUUHG SDSHU JULPH VRRW GXVW FDUERQ SDUWLFOHV IXPHV JDVHV PLVW RGRXUV SDUWLFXODWHPDWWHUUDGLRDFWLYHPDWHULDOVRUQR[LRXVFKHPLFDOVRUDQ\RWKHUPDWHULDO LQWKHRXWGRRUDWPRVSKHUH7KHUHDUHVRPHEOLQGVSRWVLQWKLVGHILQLWLRQDOVR)RU H[DPSOHWKHH[SUHVVLRQVVXFKDVµXQUHDVRQDEOHLQWHUIHUHQFHZLWKWKHFRPIRUWDEOH

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ

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



$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



LL

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

LL

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—J OHYHOV ,QWKHQRUPDOGU\DLUQLWURJHQR[\JHQDUJRQDQGFDUERQGLR[LGHFRQVWLWXWH E\YROXPH+RZHYHUWKHPRLVWXUHFRQWHQWRIWKHDWPRVSKHUHYDULHVIURP ± E\ YROXPH RI WKH WRWDO PL[WXUH 'HSHQGLQJ XSRQ WKH PRLVWXUH FRQWHQW FRQFHQWUDWLRQRIWKHRWKHUJDVHVSUHVHQWLQWKHDLUYDULHVRYHUDZLGHUDQJH7KH PHWKDQHFRQWHQWLQDLUYDULHVIURP±SSP2]RQHDQGQLWURJHQGLR[LGHHQWHUWKH DWPRVSKHUHE\WUDQVSRUWDWLRQIURPWKHVWUDWRVSKHUHDQGWUDFHVRIDPPRQLDHQWHU IURP GHFD\LQJ PDWWHU *LYHQ DOO WKHVH LQSXWV LW LV UHDOO\ GLIILFXOW WR DUULYH DW D XQLYHUVDOGHILQLWLRQRIDLUSROOXWLRQ$FFRUGLQJWRWKH(QJLQHHUV-RLQW&RXQFLODLU SROOXWLRQLVGHILQHGDV³ 7KHSUHVHQFHLQWKHRXWGRRUDWPRVSKHUHRIRQHRUPRUH FRQWDPLQDQWVVXFKDVGXVWIXPHVJDVPLVWRGRXUVPRNHRUYDSRXULQTXDQWLWLHV RIFKDUDFWHULVWLFVDQGRIGXUDWLRQVXFKDVWREHLQMXULRXVWRKXPDQSODQWRUDQLPDO OLIHRUWRSURSHUW\RUZKLFKXQUHDVRQDEO\LQWHUIHUHVZLWKWKHFRPIRUWDEOHHQMR\PHQW RIOLIHDQGSURSHUW\´7KLVGHILQLWLRQLVE\QRPHDQVFRPSOHWH$UL]RQD$LU3ROOXWLRQ &RQWURO5HJXODWLRQGHILQHVDLUSROOXWLRQDV³ 7KHSUHVHQFHLQWKHRXWGRRUDWPRVSKHUH RIRQHRUPRUHFRQWDPLQDQWVRUFRPELQDWLRQVWKHUHRILQVXFKTXDQWLWLHVDQGRI VXFKGXUDWLRQZKLFKPD\WHQGWREHLQMXULRXVWRKXPDQSODQWRUDQLPDOOLIHRU SURSHUW\´$FFRUGLQJWRWKLVGHILQLWLRQDLUFRQWDPLQDQWVLQFOXGHVPRNHYDSRXUV FKDUUHG SDSHU JULPH VRRW GXVW FDUERQ SDUWLFOHV IXPHV JDVHV PLVW RGRXUV SDUWLFXODWHPDWWHUUDGLRDFWLYHPDWHULDOVRUQR[LRXVFKHPLFDOVRUDQ\RWKHUPDWHULDO LQWKHRXWGRRUDWPRVSKHUH7KHUHDUHVRPHEOLQGVSRWVLQWKLVGHILQLWLRQDOVR)RU H[DPSOHWKHH[SUHVVLRQVVXFKDVµXQUHDVRQDEOHLQWHUIHUHQFHZLWKWKHFRPIRUWDEOH

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—J OHYHOV ,QWKHQRUPDOGU\DLUQLWURJHQR[\JHQDUJRQDQGFDUERQGLR[LGHFRQVWLWXWH E\YROXPH+RZHYHUWKHPRLVWXUHFRQWHQWRIWKHDWPRVSKHUHYDULHVIURP ± E\ YROXPH RI WKH WRWDO PL[WXUH 'HSHQGLQJ XSRQ WKH PRLVWXUH FRQWHQW FRQFHQWUDWLRQRIWKHRWKHUJDVHVSUHVHQWLQWKHDLUYDULHVRYHUDZLGHUDQJH7KH PHWKDQHFRQWHQWLQDLUYDULHVIURP±SSP2]RQHDQGQLWURJHQGLR[LGHHQWHUWKH DWPRVSKHUHE\WUDQVSRUWDWLRQIURPWKHVWUDWRVSKHUHDQGWUDFHVRIDPPRQLDHQWHU IURP GHFD\LQJ PDWWHU *LYHQ DOO WKHVH LQSXWV LW LV UHDOO\ GLIILFXOW WR DUULYH DW D XQLYHUVDOGHILQLWLRQRIDLUSROOXWLRQ$FFRUGLQJWRWKH(QJLQHHUV-RLQW&RXQFLODLU SROOXWLRQLVGHILQHGDV³ 7KHSUHVHQFHLQWKHRXWGRRUDWPRVSKHUHRIRQHRUPRUH FRQWDPLQDQWVVXFKDVGXVWIXPHVJDVPLVWRGRXUVPRNHRUYDSRXULQTXDQWLWLHV RIFKDUDFWHULVWLFVDQGRIGXUDWLRQVXFKDVWREHLQMXULRXVWRKXPDQSODQWRUDQLPDO OLIHRUWRSURSHUW\RUZKLFKXQUHDVRQDEO\LQWHUIHUHVZLWKWKHFRPIRUWDEOHHQMR\PHQW RIOLIHDQGSURSHUW\´7KLVGHILQLWLRQLVE\QRPHDQVFRPSOHWH$UL]RQD$LU3ROOXWLRQ &RQWURO5HJXODWLRQGHILQHVDLUSROOXWLRQDV³ 7KHSUHVHQFHLQWKHRXWGRRUDWPRVSKHUH RIRQHRUPRUHFRQWDPLQDQWVRUFRPELQDWLRQVWKHUHRILQVXFKTXDQWLWLHVDQGRI VXFKGXUDWLRQZKLFKPD\WHQGWREHLQMXULRXVWRKXPDQSODQWRUDQLPDOOLIHRU SURSHUW\´$FFRUGLQJWRWKLVGHILQLWLRQDLUFRQWDPLQDQWVLQFOXGHVPRNHYDSRXUV FKDUUHG SDSHU JULPH VRRW GXVW FDUERQ SDUWLFOHV IXPHV JDVHV PLVW RGRXUV SDUWLFXODWHPDWWHUUDGLRDFWLYHPDWHULDOVRUQR[LRXVFKHPLFDOVRUDQ\RWKHUPDWHULDO LQWKHRXWGRRUDWPRVSKHUH7KHUHDUHVRPHEOLQGVSRWVLQWKLVGHILQLWLRQDOVR)RU H[DPSOHWKHH[SUHVVLRQVVXFKDVµXQUHDVRQDEOHLQWHUIHUHQFHZLWKWKHFRPIRUWDEOH



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

HQMR\PHQW RI OLIH DQG SURSHUW\¶ DUH DPELJXRXV DQG RSHQ WR D YDULHW\ RI LQWHUSUHWDWLRQVE\GLIIHUHQWFRXUWV $GHILQLWLRQRIWKHW\SHJLYHQDERYHUHTXLUHVWKDWYDULRXVWHFKQLFDOWHUPVEH VSHFLILHGIRUSUHFLVHLQWHUSUHWDWLRQ)XUWKHUDQXPEHURIRWKHUWHFKQLFDOWHUPVDUH URXWLQHO\XVHGZKLOHGHDOLQJZLWKWKHHQYLURQPHQW7KH$PHULFDQ6RFLHW\IRU7HVWLQJ DQG0DWHULDOV$670 GHILQHVVHYHUDOVXFKWHUPVZKLFKDUHGHVFULEHGEHORZ

HQMR\PHQW RI OLIH DQG SURSHUW\¶ DUH DPELJXRXV DQG RSHQ WR D YDULHW\ RI LQWHUSUHWDWLRQVE\GLIIHUHQWFRXUWV $GHILQLWLRQRIWKHW\SHJLYHQDERYHUHTXLUHVWKDWYDULRXVWHFKQLFDOWHUPVEH VSHFLILHGIRUSUHFLVHLQWHUSUHWDWLRQ)XUWKHUDQXPEHURIRWKHUWHFKQLFDOWHUPVDUH URXWLQHO\XVHGZKLOHGHDOLQJZLWKWKHHQYLURQPHQW7KH$PHULFDQ6RFLHW\IRU7HVWLQJ DQG0DWHULDOV$670 GHILQHVVHYHUDOVXFKWHUPVZKLFKDUHGHVFULEHGEHORZ

3ROOXWDQW $ VXEVWDQFH SUHVHQW LQ QDWXUH LQ TXDQWLWLHV JUHDWHU WKDQ LWV QDWXUDO DEXQGDQFHGXHWRKXPDQDFWLYLW\ZKLFKXOWLPDWHO\KDVDGHWULPHQWDOHIIHFWRQWKH HQYLURQPHQWDQGWKHUHIURPRQOLYLQJRUJDQLVPVDQGPDQNLQG$UVHQLFPHUFXU\ VXOSKXUGLR[LGHFDUERQPRQR[LGHIRUPDOGHK\GHK\GURFDUERQVHWFDUHVRPH RIWKHH[DPSOHV

3ROOXWDQW $ VXEVWDQFH SUHVHQW LQ QDWXUH LQ TXDQWLWLHV JUHDWHU WKDQ LWV QDWXUDO DEXQGDQFHGXHWRKXPDQDFWLYLW\ZKLFKXOWLPDWHO\KDVDGHWULPHQWDOHIIHFWRQWKH HQYLURQPHQWDQGWKHUHIURPRQOLYLQJRUJDQLVPVDQGPDQNLQG$UVHQLFPHUFXU\ VXOSKXUGLR[LGHFDUERQPRQR[LGHIRUPDOGHK\GHK\GURFDUERQVHWFDUHVRPH RIWKHH[DPSOHV

&RQWDPLQDQW$FKHPLFDOVSHFLHVRULJLQDWLQJIURPDQWKURSRJHQLFVRXUFHVDIIHFWLQJ WKHQRUPDOFRPSRVLWLRQ:KHQDFRQWDPLQDQWH[HUWVDGHWULPHQWDOHIIHFWWKHQLWLV FODVVLILHGDVDSROOXWDQW5HOHDVHRIDPPRQLDRUFKORULQHIURPJDVF\OLQGHUVRU HVFDSLQJ YDSRXUV RI K\GURFKORULF DFLG RU VXVSHQGHG SDUWLFXODWHV RI DOXPLQD RU FHPHQW DUH FRQWDPLQDQWV LQ WKLV VHQVH EXW WKH\ DUH DOVR SROOXWDQWV DV WKH\ DUH GDQJHURXV

&RQWDPLQDQW$FKHPLFDOVSHFLHVRULJLQDWLQJIURPDQWKURSRJHQLFVRXUFHVDIIHFWLQJ WKHQRUPDOFRPSRVLWLRQ:KHQDFRQWDPLQDQWH[HUWVDGHWULPHQWDOHIIHFWWKHQLWLV FODVVLILHGDVDSROOXWDQW5HOHDVHRIDPPRQLDRUFKORULQHIURPJDVF\OLQGHUVRU HVFDSLQJ YDSRXUV RI K\GURFKORULF DFLG RU VXVSHQGHG SDUWLFXODWHV RI DOXPLQD RU FHPHQW DUH FRQWDPLQDQWV LQ WKLV VHQVH EXW WKH\ DUH DOVR SROOXWDQWV DV WKH\ DUH GDQJHURXV

*DV2QHRIWKHWKUHHVWDWHVRIPDWWHUKDYLQJDGHILQLWHFKHPLFDOFRPSRVLWLRQEXW YDU\LQJLQVKDSHDQGYROXPHDQGWHQGLQJWRH[SDQGLQGHILQLWHO\

*DV2QHRIWKHWKUHHVWDWHVRIPDWWHUKDYLQJDGHILQLWHFKHPLFDOFRPSRVLWLRQEXW YDU\LQJLQVKDSHDQGYROXPHDQGWHQGLQJWRH[SDQGLQGHILQLWHO\

3DUWLFOH$VPDOOGLVFUHWHPDVVRIVROLGRUOLTXLG

3DUWLFOH$VPDOOGLVFUHWHPDVVRIVROLGRUOLTXLG

3DUWLFXODWH$VROLGRUOLTXLGPDWHULDOH[LVWLQJDVDVHSDUDWHHQWLW\

3DUWLFXODWH$VROLGRUOLTXLGPDWHULDOH[LVWLQJDVDVHSDUDWHHQWLW\

$HURVRO $ GLVSHUVLRQ RI PLFURVFRSLF VL]HG VROLG RU OLTXLG SDUWLFOHV LQ JDVHRXV PHGLD([DPSOHVDUHVPRNHIRJRUPLVWHWF

$HURVRO $ GLVSHUVLRQ RI PLFURVFRSLF VL]HG VROLG RU OLTXLG SDUWLFOHV LQ JDVHRXV PHGLD([DPSOHVDUHVPRNHIRJRUPLVWHWF

'XVW6ROLGSDUWLFOHVFDSDEOHRIVXVSHQVLRQLQWKHDLURURWKHUJDVHV'XVWSDUWLFOHV GR QRW VHWWOH RQ WKHLU RZQ EXW IORFFXODWH XQGHU JUDYLWDWLRQDO IRUFHV DQGRU DUH FDSDEOHRIVHWWOLQJXQGHUWKHLQIOXHQFHRIJUDYLW\

'XVW6ROLGSDUWLFOHVFDSDEOHRIVXVSHQVLRQLQWKHDLURURWKHUJDVHV'XVWSDUWLFOHV GR QRW VHWWOH RQ WKHLU RZQ EXW IORFFXODWH XQGHU JUDYLWDWLRQDO IRUFHV DQGRU DUH FDSDEOHRIVHWWOLQJXQGHUWKHLQIOXHQFHRIJUDYLW\

'URSOHW$OLTXLGSDUWLFOHVXVSHQGHGXQGHUWXUEXOHQWFRQGLWLRQVEXWFDSDEOHRI VHWWOLQJXQGHUJUDYLW\LQQRQWXUEXOHQWFRQGLWLRQV

'URSOHW$OLTXLGSDUWLFOHVXVSHQGHGXQGHUWXUEXOHQWFRQGLWLRQVEXWFDSDEOHRI VHWWOLQJXQGHUJUDYLW\LQQRQWXUEXOHQWFRQGLWLRQV

)RJ 9LVLEOHDHURVROVZLWKOLTXLGDVDPDMRUSKDVH,WLVLPSOLHGWKDWWKHIRJLV IRUPHGE\FRQGHQVDWLRQRIZDWHURULFH

)RJ 9LVLEOHDHURVROVZLWKOLTXLGDVDPDMRUSKDVH,WLVLPSOLHGWKDWWKHIRJLV IRUPHGE\FRQGHQVDWLRQRIZDWHURULFH

0LVW/RZFRQFHQWUDWLRQGLVSHUVLRQVRIOLTXLGSDUWLFOHVRIODUJHVL]H

0LVW/RZFRQFHQWUDWLRQGLVSHUVLRQVRIOLTXLGSDUWLFOHVRIODUJHVL]H

9DSRXU7KHJDVHRXVSKDVHRIDPDWHULDOZKLFKQRUPDOO\H[LVWVDVDOLTXLGRUVROLG DWDPELHQWWHPSHUDWXUHV

9DSRXU7KHJDVHRXVSKDVHRIDPDWHULDOZKLFKQRUPDOO\H[LVWVDVDOLTXLGRUVROLG DWDPELHQWWHPSHUDWXUHV

6RRW$QDJJORPHUDWLRQRIFDUERQSDUWLFOHVLPSUHJQDWHGZLWKWDUIRUPHGGXHWR LQFRPSOHWHFRPEXVWLRQRIPDWHULDO

6RRW$QDJJORPHUDWLRQRIFDUERQSDUWLFOHVLPSUHJQDWHGZLWKWDUIRUPHGGXHWR LQFRPSOHWHFRPEXVWLRQRIPDWHULDO

6PRNH$ILQHO\GLYLGHGDHURVRORIFDUERQSDUWLFOHVIRUPHGGXULQJLQFRPSOHWH FRPEXVWLRQ

6PRNH$ILQHO\GLYLGHGDHURVRORIFDUERQSDUWLFOHVIRUPHGGXULQJLQFRPSOHWH FRPEXVWLRQ





3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

HQMR\PHQW RI OLIH DQG SURSHUW\¶ DUH DPELJXRXV DQG RSHQ WR D YDULHW\ RI LQWHUSUHWDWLRQVE\GLIIHUHQWFRXUWV $GHILQLWLRQRIWKHW\SHJLYHQDERYHUHTXLUHVWKDWYDULRXVWHFKQLFDOWHUPVEH VSHFLILHGIRUSUHFLVHLQWHUSUHWDWLRQ)XUWKHUDQXPEHURIRWKHUWHFKQLFDOWHUPVDUH URXWLQHO\XVHGZKLOHGHDOLQJZLWKWKHHQYLURQPHQW7KH$PHULFDQ6RFLHW\IRU7HVWLQJ DQG0DWHULDOV$670 GHILQHVVHYHUDOVXFKWHUPVZKLFKDUHGHVFULEHGEHORZ

HQMR\PHQW RI OLIH DQG SURSHUW\¶ DUH DPELJXRXV DQG RSHQ WR D YDULHW\ RI LQWHUSUHWDWLRQVE\GLIIHUHQWFRXUWV $GHILQLWLRQRIWKHW\SHJLYHQDERYHUHTXLUHVWKDWYDULRXVWHFKQLFDOWHUPVEH VSHFLILHGIRUSUHFLVHLQWHUSUHWDWLRQ)XUWKHUDQXPEHURIRWKHUWHFKQLFDOWHUPVDUH URXWLQHO\XVHGZKLOHGHDOLQJZLWKWKHHQYLURQPHQW7KH$PHULFDQ6RFLHW\IRU7HVWLQJ DQG0DWHULDOV$670 GHILQHVVHYHUDOVXFKWHUPVZKLFKDUHGHVFULEHGEHORZ

3ROOXWDQW $ VXEVWDQFH SUHVHQW LQ QDWXUH LQ TXDQWLWLHV JUHDWHU WKDQ LWV QDWXUDO DEXQGDQFHGXHWRKXPDQDFWLYLW\ZKLFKXOWLPDWHO\KDVDGHWULPHQWDOHIIHFWRQWKH HQYLURQPHQWDQGWKHUHIURPRQOLYLQJRUJDQLVPVDQGPDQNLQG$UVHQLFPHUFXU\ VXOSKXUGLR[LGHFDUERQPRQR[LGHIRUPDOGHK\GHK\GURFDUERQVHWFDUHVRPH RIWKHH[DPSOHV

3ROOXWDQW $ VXEVWDQFH SUHVHQW LQ QDWXUH LQ TXDQWLWLHV JUHDWHU WKDQ LWV QDWXUDO DEXQGDQFHGXHWRKXPDQDFWLYLW\ZKLFKXOWLPDWHO\KDVDGHWULPHQWDOHIIHFWRQWKH HQYLURQPHQWDQGWKHUHIURPRQOLYLQJRUJDQLVPVDQGPDQNLQG$UVHQLFPHUFXU\ VXOSKXUGLR[LGHFDUERQPRQR[LGHIRUPDOGHK\GHK\GURFDUERQVHWFDUHVRPH RIWKHH[DPSOHV

&RQWDPLQDQW$FKHPLFDOVSHFLHVRULJLQDWLQJIURPDQWKURSRJHQLFVRXUFHVDIIHFWLQJ WKHQRUPDOFRPSRVLWLRQ:KHQDFRQWDPLQDQWH[HUWVDGHWULPHQWDOHIIHFWWKHQLWLV FODVVLILHGDVDSROOXWDQW5HOHDVHRIDPPRQLDRUFKORULQHIURPJDVF\OLQGHUVRU HVFDSLQJ YDSRXUV RI K\GURFKORULF DFLG RU VXVSHQGHG SDUWLFXODWHV RI DOXPLQD RU FHPHQW DUH FRQWDPLQDQWV LQ WKLV VHQVH EXW WKH\ DUH DOVR SROOXWDQWV DV WKH\ DUH GDQJHURXV

&RQWDPLQDQW$FKHPLFDOVSHFLHVRULJLQDWLQJIURPDQWKURSRJHQLFVRXUFHVDIIHFWLQJ WKHQRUPDOFRPSRVLWLRQ:KHQDFRQWDPLQDQWH[HUWVDGHWULPHQWDOHIIHFWWKHQLWLV FODVVLILHGDVDSROOXWDQW5HOHDVHRIDPPRQLDRUFKORULQHIURPJDVF\OLQGHUVRU HVFDSLQJ YDSRXUV RI K\GURFKORULF DFLG RU VXVSHQGHG SDUWLFXODWHV RI DOXPLQD RU FHPHQW DUH FRQWDPLQDQWV LQ WKLV VHQVH EXW WKH\ DUH DOVR SROOXWDQWV DV WKH\ DUH GDQJHURXV

*DV2QHRIWKHWKUHHVWDWHVRIPDWWHUKDYLQJDGHILQLWHFKHPLFDOFRPSRVLWLRQEXW YDU\LQJLQVKDSHDQGYROXPHDQGWHQGLQJWRH[SDQGLQGHILQLWHO\

*DV2QHRIWKHWKUHHVWDWHVRIPDWWHUKDYLQJDGHILQLWHFKHPLFDOFRPSRVLWLRQEXW YDU\LQJLQVKDSHDQGYROXPHDQGWHQGLQJWRH[SDQGLQGHILQLWHO\

3DUWLFOH$VPDOOGLVFUHWHPDVVRIVROLGRUOLTXLG

3DUWLFOH$VPDOOGLVFUHWHPDVVRIVROLGRUOLTXLG

3DUWLFXODWH$VROLGRUOLTXLGPDWHULDOH[LVWLQJDVDVHSDUDWHHQWLW\

3DUWLFXODWH$VROLGRUOLTXLGPDWHULDOH[LVWLQJDVDVHSDUDWHHQWLW\

$HURVRO $ GLVSHUVLRQ RI PLFURVFRSLF VL]HG VROLG RU OLTXLG SDUWLFOHV LQ JDVHRXV PHGLD([DPSOHVDUHVPRNHIRJRUPLVWHWF

$HURVRO $ GLVSHUVLRQ RI PLFURVFRSLF VL]HG VROLG RU OLTXLG SDUWLFOHV LQ JDVHRXV PHGLD([DPSOHVDUHVPRNHIRJRUPLVWHWF

'XVW6ROLGSDUWLFOHVFDSDEOHRIVXVSHQVLRQLQWKHDLURURWKHUJDVHV'XVWSDUWLFOHV GR QRW VHWWOH RQ WKHLU RZQ EXW IORFFXODWH XQGHU JUDYLWDWLRQDO IRUFHV DQGRU DUH FDSDEOHRIVHWWOLQJXQGHUWKHLQIOXHQFHRIJUDYLW\

'XVW6ROLGSDUWLFOHVFDSDEOHRIVXVSHQVLRQLQWKHDLURURWKHUJDVHV'XVWSDUWLFOHV GR QRW VHWWOH RQ WKHLU RZQ EXW IORFFXODWH XQGHU JUDYLWDWLRQDO IRUFHV DQGRU DUH FDSDEOHRIVHWWOLQJXQGHUWKHLQIOXHQFHRIJUDYLW\

'URSOHW$OLTXLGSDUWLFOHVXVSHQGHGXQGHUWXUEXOHQWFRQGLWLRQVEXWFDSDEOHRI VHWWOLQJXQGHUJUDYLW\LQQRQWXUEXOHQWFRQGLWLRQV

'URSOHW$OLTXLGSDUWLFOHVXVSHQGHGXQGHUWXUEXOHQWFRQGLWLRQVEXWFDSDEOHRI VHWWOLQJXQGHUJUDYLW\LQQRQWXUEXOHQWFRQGLWLRQV

)RJ 9LVLEOHDHURVROVZLWKOLTXLGDVDPDMRUSKDVH,WLVLPSOLHGWKDWWKHIRJLV IRUPHGE\FRQGHQVDWLRQRIZDWHURULFH

)RJ 9LVLEOHDHURVROVZLWKOLTXLGDVDPDMRUSKDVH,WLVLPSOLHGWKDWWKHIRJLV IRUPHGE\FRQGHQVDWLRQRIZDWHURULFH

0LVW/RZFRQFHQWUDWLRQGLVSHUVLRQVRIOLTXLGSDUWLFOHVRIODUJHVL]H

0LVW/RZFRQFHQWUDWLRQGLVSHUVLRQVRIOLTXLGSDUWLFOHVRIODUJHVL]H

9DSRXU7KHJDVHRXVSKDVHRIDPDWHULDOZKLFKQRUPDOO\H[LVWVDVDOLTXLGRUVROLG DWDPELHQWWHPSHUDWXUHV

9DSRXU7KHJDVHRXVSKDVHRIDPDWHULDOZKLFKQRUPDOO\H[LVWVDVDOLTXLGRUVROLG DWDPELHQWWHPSHUDWXUHV

6RRW$QDJJORPHUDWLRQRIFDUERQSDUWLFOHVLPSUHJQDWHGZLWKWDUIRUPHGGXHWR LQFRPSOHWHFRPEXVWLRQRIPDWHULDO

6RRW$QDJJORPHUDWLRQRIFDUERQSDUWLFOHVLPSUHJQDWHGZLWKWDUIRUPHGGXHWR LQFRPSOHWHFRPEXVWLRQRIPDWHULDO

6PRNH$ILQHO\GLYLGHGDHURVRORIFDUERQSDUWLFOHVIRUPHGGXULQJLQFRPSOHWH FRPEXVWLRQ

6PRNH$ILQHO\GLYLGHGDHURVRORIFDUERQSDUWLFOHVIRUPHGGXULQJLQFRPSOHWH FRPEXVWLRQ

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



5HFHSWRU$PHGLXPZKLFKLVDIIHFWHGE\DSROOXWDQWWKURXJKGLUHFWRULQGLUHFW FRQWDFW

5HFHSWRU$PHGLXPZKLFKLVDIIHFWHGE\DSROOXWDQWWKURXJKGLUHFWRULQGLUHFW FRQWDFW

6LQN$PHGLXPZKLFKUHWDLQVDQGIDFLOLWDWHVLQWHUDFWLRQZLWKDORQJOLYHGSROOXWDQW )RUH[DPSOHRFHDQVDFWDVVLQNVIRUFDUERQGLR[LGHDQGVXOSKXUGLR[LGH

6LQN$PHGLXPZKLFKUHWDLQVDQGIDFLOLWDWHVLQWHUDFWLRQZLWKDORQJOLYHGSROOXWDQW )RUH[DPSOHRFHDQVDFWDVVLQNVIRUFDUERQGLR[LGHDQGVXOSKXUGLR[LGH

 &/$66,),&$7,212)$,532//87$176

 &/$66,),&$7,212)$,532//87$176

)URPWKHDERYHGHILQLWLRQVLWLVFOHDUWKDWDOPRVWDQ\QDWXUDORUDUWLILFLDOUHOHDVHRI DLUERUQH PDWWHU FRQWDPLQDWHV WKH HQYLURQPHQW 7KH FRQWDPLQDQWV PD\ EH VROLG SDUWLFOHVOLTXLGGURSOHWVJDVHVRUDQDGPL[WXUHRIDOOWKHVHWKUHHIRUPV,QIDFW SROOXWLRQ UDUHO\ RFFXUV IURP D VLQJOH FKHPLFDO VSHFLHV (YHQ LI LW GRHV KDSSHQ VHYHUDOVHFRQGDU\UHDFWLRQVDUHERXQGWRWDNHSODFHZLWKRWKHUDWPRVSKHULFJDVHV ZLWKRUZLWKRXWSKRWRDFWLYDWLRQ7KHUHIRUHSROOXWDQWVPD\EHFODVVLILHGLQWRWZR JHQHUDOJURXSV

)URPWKHDERYHGHILQLWLRQVLWLVFOHDUWKDWDOPRVWDQ\QDWXUDORUDUWLILFLDOUHOHDVHRI DLUERUQH PDWWHU FRQWDPLQDWHV WKH HQYLURQPHQW 7KH FRQWDPLQDQWV PD\ EH VROLG SDUWLFOHVOLTXLGGURSOHWVJDVHVRUDQDGPL[WXUHRIDOOWKHVHWKUHHIRUPV,QIDFW SROOXWLRQ UDUHO\ RFFXUV IURP D VLQJOH FKHPLFDO VSHFLHV (YHQ LI LW GRHV KDSSHQ VHYHUDOVHFRQGDU\UHDFWLRQVDUHERXQGWRWDNHSODFHZLWKRWKHUDWPRVSKHULFJDVHV ZLWKRUZLWKRXWSKRWRDFWLYDWLRQ7KHUHIRUHSROOXWDQWVPD\EHFODVVLILHGLQWRWZR JHQHUDOJURXSV

D E

D E

3ULPDU\SROOXWDQWVDUHWKRVHHPLWWHGGLUHFWO\IURPLGHQWLILDEOHVRXUFHVDQG 6HFRQGDU\ SROOXWDQWV DUH WKRVH SURGXFHG LQ WKH DWPRVSKHUH E\ LQWHUDFWLRQ ZLWKWZRRUPRUHSULPDU\SROOXWDQWVXQGHUWKHLQIOXHQFHRIFDWDO\WLFRUWKHUPDO IRUFHVRQDVXLWDEOHUHFHSWRUVLWHVXFKDVGXVWRUVPRNHSDUWLFOHV

3ULPDU\SROOXWDQWVDUHWKRVHHPLWWHGGLUHFWO\IURPLGHQWLILDEOHVRXUFHVDQG 6HFRQGDU\ SROOXWDQWV DUH WKRVH SURGXFHG LQ WKH DWPRVSKHUH E\ LQWHUDFWLRQ ZLWKWZRRUPRUHSULPDU\SROOXWDQWVXQGHUWKHLQIOXHQFHRIFDWDO\WLFRUWKHUPDO IRUFHVRQDVXLWDEOHUHFHSWRUVLWHVXFKDVGXVWRUVPRNHSDUWLFOHV

3ULPDU\3ROOXWDQWV

3ULPDU\3ROOXWDQWV

7KHUHDUHSULPDU\SROOXWDQWVFRQWULEXWLQJPRUHWKDQRIWKHJOREDODLUSROOXWLRQ 7KHVH LQFOXGH FDUERQ FRPSRXQGV &2 [   QLWURJHQ R[LGHV 12 [   VXOSKXU FRPSRXQGV 62[  KDORJHQV +;  RUJDQLF FRPSRXQGV +&21 [SDUWLFXODWHV DQGUDGLRDFWLYHFRPSRXQGV

7KHUHDUHSULPDU\SROOXWDQWVFRQWULEXWLQJPRUHWKDQRIWKHJOREDODLUSROOXWLRQ 7KHVH LQFOXGH FDUERQ FRPSRXQGV &2 [   QLWURJHQ R[LGHV 12 [   VXOSKXU FRPSRXQGV 62[  KDORJHQV +;  RUJDQLF FRPSRXQGV +&21 [SDUWLFXODWHV DQGUDGLRDFWLYHFRPSRXQGV

$ &DUERQ&RPSRXQGV

$ &DUERQ&RPSRXQGV

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

&2o&2LQFRPSOHWHFRPEXVWLRQRIFRDODQGK\GURFDUERQV 

&2o&2LQFRPSOHWHFRPEXVWLRQRIFRDODQGK\GURFDUERQV 

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



5HFHSWRU$PHGLXPZKLFKLVDIIHFWHGE\DSROOXWDQWWKURXJKGLUHFWRULQGLUHFW FRQWDFW

5HFHSWRU$PHGLXPZKLFKLVDIIHFWHGE\DSROOXWDQWWKURXJKGLUHFWRULQGLUHFW FRQWDFW

6LQN$PHGLXPZKLFKUHWDLQVDQGIDFLOLWDWHVLQWHUDFWLRQZLWKDORQJOLYHGSROOXWDQW )RUH[DPSOHRFHDQVDFWDVVLQNVIRUFDUERQGLR[LGHDQGVXOSKXUGLR[LGH

6LQN$PHGLXPZKLFKUHWDLQVDQGIDFLOLWDWHVLQWHUDFWLRQZLWKDORQJOLYHGSROOXWDQW )RUH[DPSOHRFHDQVDFWDVVLQNVIRUFDUERQGLR[LGHDQGVXOSKXUGLR[LGH

 &/$66,),&$7,212)$,532//87$176

 &/$66,),&$7,212)$,532//87$176

)URPWKHDERYHGHILQLWLRQVLWLVFOHDUWKDWDOPRVWDQ\QDWXUDORUDUWLILFLDOUHOHDVHRI DLUERUQH PDWWHU FRQWDPLQDWHV WKH HQYLURQPHQW 7KH FRQWDPLQDQWV PD\ EH VROLG SDUWLFOHVOLTXLGGURSOHWVJDVHVRUDQDGPL[WXUHRIDOOWKHVHWKUHHIRUPV,QIDFW SROOXWLRQ UDUHO\ RFFXUV IURP D VLQJOH FKHPLFDO VSHFLHV (YHQ LI LW GRHV KDSSHQ VHYHUDOVHFRQGDU\UHDFWLRQVDUHERXQGWRWDNHSODFHZLWKRWKHUDWPRVSKHULFJDVHV ZLWKRUZLWKRXWSKRWRDFWLYDWLRQ7KHUHIRUHSROOXWDQWVPD\EHFODVVLILHGLQWRWZR JHQHUDOJURXSV

)URPWKHDERYHGHILQLWLRQVLWLVFOHDUWKDWDOPRVWDQ\QDWXUDORUDUWLILFLDOUHOHDVHRI DLUERUQH PDWWHU FRQWDPLQDWHV WKH HQYLURQPHQW 7KH FRQWDPLQDQWV PD\ EH VROLG SDUWLFOHVOLTXLGGURSOHWVJDVHVRUDQDGPL[WXUHRIDOOWKHVHWKUHHIRUPV,QIDFW SROOXWLRQ UDUHO\ RFFXUV IURP D VLQJOH FKHPLFDO VSHFLHV (YHQ LI LW GRHV KDSSHQ VHYHUDOVHFRQGDU\UHDFWLRQVDUHERXQGWRWDNHSODFHZLWKRWKHUDWPRVSKHULFJDVHV ZLWKRUZLWKRXWSKRWRDFWLYDWLRQ7KHUHIRUHSROOXWDQWVPD\EHFODVVLILHGLQWRWZR JHQHUDOJURXSV

D E

D E

3ULPDU\SROOXWDQWVDUHWKRVHHPLWWHGGLUHFWO\IURPLGHQWLILDEOHVRXUFHVDQG 6HFRQGDU\ SROOXWDQWV DUH WKRVH SURGXFHG LQ WKH DWPRVSKHUH E\ LQWHUDFWLRQ ZLWKWZRRUPRUHSULPDU\SROOXWDQWVXQGHUWKHLQIOXHQFHRIFDWDO\WLFRUWKHUPDO IRUFHVRQDVXLWDEOHUHFHSWRUVLWHVXFKDVGXVWRUVPRNHSDUWLFOHV

3ULPDU\SROOXWDQWVDUHWKRVHHPLWWHGGLUHFWO\IURPLGHQWLILDEOHVRXUFHVDQG 6HFRQGDU\ SROOXWDQWV DUH WKRVH SURGXFHG LQ WKH DWPRVSKHUH E\ LQWHUDFWLRQ ZLWKWZRRUPRUHSULPDU\SROOXWDQWVXQGHUWKHLQIOXHQFHRIFDWDO\WLFRUWKHUPDO IRUFHVRQDVXLWDEOHUHFHSWRUVLWHVXFKDVGXVWRUVPRNHSDUWLFOHV

3ULPDU\3ROOXWDQWV

3ULPDU\3ROOXWDQWV

7KHUHDUHSULPDU\SROOXWDQWVFRQWULEXWLQJPRUHWKDQRIWKHJOREDODLUSROOXWLRQ 7KHVH LQFOXGH FDUERQ FRPSRXQGV &2 [   QLWURJHQ R[LGHV 12 [   VXOSKXU FRPSRXQGV 62[  KDORJHQV +;  RUJDQLF FRPSRXQGV +&21 [SDUWLFXODWHV DQGUDGLRDFWLYHFRPSRXQGV

7KHUHDUHSULPDU\SROOXWDQWVFRQWULEXWLQJPRUHWKDQRIWKHJOREDODLUSROOXWLRQ 7KHVH LQFOXGH FDUERQ FRPSRXQGV &2 [   QLWURJHQ R[LGHV 12 [   VXOSKXU FRPSRXQGV 62[  KDORJHQV +;  RUJDQLF FRPSRXQGV +&21 [SDUWLFXODWHV DQGUDGLRDFWLYHFRPSRXQGV

$ &DUERQ&RPSRXQGV

$ &DUERQ&RPSRXQGV

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

&2o&2LQFRPSOHWHFRPEXVWLRQRIFRDODQGK\GURFDUERQV 

&2o&2LQFRPSOHWHFRPEXVWLRQRIFRDODQGK\GURFDUERQV 



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

&2&o&2LQGXVWULDOSURFHVVHJEODVWIXUQDFHV



&2&o&2LQGXVWULDOSURFHVVHJEODVWIXUQDFHV



&2o&22+LJKWHPSHUDWXUHUHDFWLRQ



&2o&22+LJKWHPSHUDWXUHUHDFWLRQ



7KH DSSUR[LPDWH FRQWULEXWLRQ RI FDUERQ PRQR[LGH WR WKH DWPRVSKHUH IURP YDULRXVVRXUFHVLVVKRZQLQ7DEOH

7KH DSSUR[LPDWH FRQWULEXWLRQ RI FDUERQ PRQR[LGH WR WKH DWPRVSKHUH IURP YDULRXVVRXUFHVLVVKRZQLQ7DEOH

7DEOH&RQWULEXWLRQRI&2IURPYDULRXVVRXUFHV

7DEOH&RQWULEXWLRQRI&2IURPYDULRXVVRXUFHV

6RXUFHV

&RQWULEXWLRQ

6RXUFHV

&RQWULEXWLRQ

7UDQVSRUW LQGXVWU\



7UDQVSRUW LQGXVWU\



)RUHVW ILUHV



)RUHVW ILUHV



$JULFXOWXUDO EXUQLQJ



0LVFHOODQHRXV

$JULFXOWXUDO EXUQLQJ



,QGXVWULDOSURFHVVHVLURQVWHHOSHWUROHXPSDSHUHWF



0LVFHOODQHRXV





,QGXVWULDOSURFHVVHVLURQVWHHOSHWUROHXPSDSHUHWF



7KHDQQXDOLQSXWRIFDUERQPRQR[LGHE\DQWKURSRJHQLFVRXUFHVLVGRXEOLQJ HYHU\\HDUV>@)RUWXQDWHO\PRVWRIWKHFDUERQPRQR[LGHLQWKHHQYLURQPHQWLV DEVRUEHGE\VRLOPLFURRUJDQLVPV0RUHWKDQW\SHVRIPLFURRUJDQLVPVDQG VSHFLHVRIIXQJLSUHVHQWLQWKHVRLODUHFDSDEOHRIDEVRUELQJFDUERQPRQR[LGH7KH EDFNJURXQGFRQFHQWUDWLRQRIFDUERQPRQR[LGHLQWKHDWPRVSKHUHLVDURXQG SSP&DUERQPRQR[LGHGRHVQRWSDUWLFLSDWHLQVHFRQGDU\FKHPLFDOUHDFWLRQVEXW LWVDELOLW\WRLPSDLUWKHR[\JHQFDUU\LQJFDSDFLW\RIKDHPRJORELQTXDOLILHVLWDVD SULPDU\DLUSROOXWDQW

7KHDQQXDOLQSXWRIFDUERQPRQR[LGHE\DQWKURSRJHQLFVRXUFHVLVGRXEOLQJ HYHU\\HDUV>@)RUWXQDWHO\PRVWRIWKHFDUERQPRQR[LGHLQWKHHQYLURQPHQWLV DEVRUEHGE\VRLOPLFURRUJDQLVPV0RUHWKDQW\SHVRIPLFURRUJDQLVPVDQG VSHFLHVRIIXQJLSUHVHQWLQWKHVRLODUHFDSDEOHRIDEVRUELQJFDUERQPRQR[LGH7KH EDFNJURXQGFRQFHQWUDWLRQRIFDUERQPRQR[LGHLQWKHDWPRVSKHUHLVDURXQG SSP&DUERQPRQR[LGHGRHVQRWSDUWLFLSDWHLQVHFRQGDU\FKHPLFDOUHDFWLRQVEXW LWVDELOLW\WRLPSDLUWKHR[\JHQFDUU\LQJFDSDFLW\RIKDHPRJORELQTXDOLILHVLWDVD SULPDU\DLUSROOXWDQW

% 1LWURJHQ&RPSRXQGV 7KHQLWURJHQFRPSRXQGVLQWKHDLUFRPSULVHPDLQO\RIQLWULFR[LGH12 QLWURJHQ GLR[LGH 12  DQG DPPRQLD 1+  1LWULF R[LGH LV SURGXFHG LQ QDWXUH E\ WKH FRPELQDWLRQRIQLWURJHQDQGR[\JHQGXULQJOLJKWQLQJ1LWURJHQR[LGHVDUHSURGXFHG LQ KLJK WHPSHUDWXUH FRPEXVWLRQ SURFHVVHV LQYROYLQJ QLWURJHQ DQG DWPRVSKHULF R[\JHQ1LWURJHQGLR[LGH12 LVWR[LFWRWLVVXHVDWSSPOHYHOV%RWK12DQG 12SDUWLFLSDWHLQDWPRVSKHULFSKRWRFKHPLFDOUHDFWLRQV

% 1LWURJHQ&RPSRXQGV 7KHQLWURJHQFRPSRXQGVLQWKHDLUFRPSULVHPDLQO\RIQLWULFR[LGH12 QLWURJHQ GLR[LGH 12  DQG DPPRQLD 1+  1LWULF R[LGH LV SURGXFHG LQ QDWXUH E\ WKH FRPELQDWLRQRIQLWURJHQDQGR[\JHQGXULQJOLJKWQLQJ1LWURJHQR[LGHVDUHSURGXFHG LQ KLJK WHPSHUDWXUH FRPEXVWLRQ SURFHVVHV LQYROYLQJ QLWURJHQ DQG DWPRVSKHULF R[\JHQ1LWURJHQGLR[LGH12 LVWR[LFWRWLVVXHVDWSSPOHYHOV%RWK12DQG 12SDUWLFLSDWHLQDWPRVSKHULFSKRWRFKHPLFDOUHDFWLRQV

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





3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

&2&o&2LQGXVWULDOSURFHVVHJEODVWIXUQDFHV



&2&o&2LQGXVWULDOSURFHVVHJEODVWIXUQDFHV



&2o&22+LJKWHPSHUDWXUHUHDFWLRQ



&2o&22+LJKWHPSHUDWXUHUHDFWLRQ



7KH DSSUR[LPDWH FRQWULEXWLRQ RI FDUERQ PRQR[LGH WR WKH DWPRVSKHUH IURP YDULRXVVRXUFHVLVVKRZQLQ7DEOH

7KH DSSUR[LPDWH FRQWULEXWLRQ RI FDUERQ PRQR[LGH WR WKH DWPRVSKHUH IURP YDULRXVVRXUFHVLVVKRZQLQ7DEOH

7DEOH&RQWULEXWLRQRI&2IURPYDULRXVVRXUFHV

7DEOH&RQWULEXWLRQRI&2IURPYDULRXVVRXUFHV

6RXUFHV

&RQWULEXWLRQ

6RXUFHV

&RQWULEXWLRQ

7UDQVSRUW LQGXVWU\



7UDQVSRUW LQGXVWU\



)RUHVW ILUHV



)RUHVW ILUHV



$JULFXOWXUDO EXUQLQJ 0LVFHOODQHRXV ,QGXVWULDOSURFHVVHVLURQVWHHOSHWUROHXPSDSHUHWF

  

$JULFXOWXUDO EXUQLQJ 0LVFHOODQHRXV ,QGXVWULDOSURFHVVHVLURQVWHHOSHWUROHXPSDSHUHWF

  

7KHDQQXDOLQSXWRIFDUERQPRQR[LGHE\DQWKURSRJHQLFVRXUFHVLVGRXEOLQJ HYHU\\HDUV>@)RUWXQDWHO\PRVWRIWKHFDUERQPRQR[LGHLQWKHHQYLURQPHQWLV DEVRUEHGE\VRLOPLFURRUJDQLVPV0RUHWKDQW\SHVRIPLFURRUJDQLVPVDQG VSHFLHVRIIXQJLSUHVHQWLQWKHVRLODUHFDSDEOHRIDEVRUELQJFDUERQPRQR[LGH7KH EDFNJURXQGFRQFHQWUDWLRQRIFDUERQPRQR[LGHLQWKHDWPRVSKHUHLVDURXQG SSP&DUERQPRQR[LGHGRHVQRWSDUWLFLSDWHLQVHFRQGDU\FKHPLFDOUHDFWLRQVEXW LWVDELOLW\WRLPSDLUWKHR[\JHQFDUU\LQJFDSDFLW\RIKDHPRJORELQTXDOLILHVLWDVD SULPDU\DLUSROOXWDQW

7KHDQQXDOLQSXWRIFDUERQPRQR[LGHE\DQWKURSRJHQLFVRXUFHVLVGRXEOLQJ HYHU\\HDUV>@)RUWXQDWHO\PRVWRIWKHFDUERQPRQR[LGHLQWKHHQYLURQPHQWLV DEVRUEHGE\VRLOPLFURRUJDQLVPV0RUHWKDQW\SHVRIPLFURRUJDQLVPVDQG VSHFLHVRIIXQJLSUHVHQWLQWKHVRLODUHFDSDEOHRIDEVRUELQJFDUERQPRQR[LGH7KH EDFNJURXQGFRQFHQWUDWLRQRIFDUERQPRQR[LGHLQWKHDWPRVSKHUHLVDURXQG SSP&DUERQPRQR[LGHGRHVQRWSDUWLFLSDWHLQVHFRQGDU\FKHPLFDOUHDFWLRQVEXW LWVDELOLW\WRLPSDLUWKHR[\JHQFDUU\LQJFDSDFLW\RIKDHPRJORELQTXDOLILHVLWDVD SULPDU\DLUSROOXWDQW

% 1LWURJHQ&RPSRXQGV 7KHQLWURJHQFRPSRXQGVLQWKHDLUFRPSULVHPDLQO\RIQLWULFR[LGH12 QLWURJHQ GLR[LGH 12  DQG DPPRQLD 1+  1LWULF R[LGH LV SURGXFHG LQ QDWXUH E\ WKH FRPELQDWLRQRIQLWURJHQDQGR[\JHQGXULQJOLJKWQLQJ1LWURJHQR[LGHVDUHSURGXFHG LQ KLJK WHPSHUDWXUH FRPEXVWLRQ SURFHVVHV LQYROYLQJ QLWURJHQ DQG DWPRVSKHULF R[\JHQ1LWURJHQGLR[LGH12 LVWR[LFWRWLVVXHVDWSSPOHYHOV%RWK12DQG 12SDUWLFLSDWHLQDWPRVSKHULFSKRWRFKHPLFDOUHDFWLRQV

% 1LWURJHQ&RPSRXQGV 7KHQLWURJHQFRPSRXQGVLQWKHDLUFRPSULVHPDLQO\RIQLWULFR[LGH12 QLWURJHQ GLR[LGH 12  DQG DPPRQLD 1+  1LWULF R[LGH LV SURGXFHG LQ QDWXUH E\ WKH FRPELQDWLRQRIQLWURJHQDQGR[\JHQGXULQJOLJKWQLQJ1LWURJHQR[LGHVDUHSURGXFHG LQ KLJK WHPSHUDWXUH FRPEXVWLRQ SURFHVVHV LQYROYLQJ QLWURJHQ DQG DWPRVSKHULF R[\JHQ1LWURJHQGLR[LGH12 LVWR[LFWRWLVVXHVDWSSPOHYHOV%RWK12DQG 12SDUWLFLSDWHLQDWPRVSKHULFSKRWRFKHPLFDOUHDFWLRQV

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

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



' +DORJHQ&RPSRXQGV +\GURJHQIOXRULGHK\GURJHQFKORULGHK\GURJHQEURPLGHFKORURIOXRURFDUERQV HWF DUH SURGXFHG LQ PHWDOOXUJLFDO DQG RWKHU LQGXVWULDO SURFHVVHV 7KH\ DUH FRUURVLYHLUULWDWLQJDQGVHYHUHO\GDPDJHWKHFURSVDQGFDWWOH,WKDVEHHQHVWLPDWHG WKDWPRUHWKDQFKORULQHFRQWDLQLQJFKHPLFDOVDUHSURGXFHGGXULQJWKHSURGXFWLRQ DQGEXUQLQJRISDSHU$OPRVWDOOWKHSURFHVVHVLQYROYLQJFKORULQDWHGFKHPLFDOV JHQHUDWHGLR[LQVZKLFKDUHNQRZQFDUFLQRJHQV(YHQWLQ\GRVHVRIGLR[LQVRIWKH RUGHURIDIHZQDQRJUDPVSSEOHYHOV±J DUHFDSDEOHRIFDXVLQJKRUPRQDO LPEDODQFHOHDGLQJWRLQIHUWLOLW\ORZHUVSHUPFRXQWVDQGRWKHUUHSURGXFWLYHSUREOHPV GXULQJSXEHUW\(QGHPRVLVDQGGLDEHWHVDUHDOVROLQNHGWRRUJDQRFKORULQHV

' +DORJHQ&RPSRXQGV +\GURJHQIOXRULGHK\GURJHQFKORULGHK\GURJHQEURPLGHFKORURIOXRURFDUERQV HWF DUH SURGXFHG LQ PHWDOOXUJLFDO DQG RWKHU LQGXVWULDO SURFHVVHV 7KH\ DUH FRUURVLYHLUULWDWLQJDQGVHYHUHO\GDPDJHWKHFURSVDQGFDWWOH,WKDVEHHQHVWLPDWHG WKDWPRUHWKDQFKORULQHFRQWDLQLQJFKHPLFDOVDUHSURGXFHGGXULQJWKHSURGXFWLRQ DQGEXUQLQJRISDSHU$OPRVWDOOWKHSURFHVVHVLQYROYLQJFKORULQDWHGFKHPLFDOV JHQHUDWHGLR[LQVZKLFKDUHNQRZQFDUFLQRJHQV(YHQWLQ\GRVHVRIGLR[LQVRIWKH RUGHURIDIHZQDQRJUDPVSSEOHYHOV±J DUHFDSDEOHRIFDXVLQJKRUPRQDO LPEDODQFHOHDGLQJWRLQIHUWLOLW\ORZHUVSHUPFRXQWVDQGRWKHUUHSURGXFWLYHSUREOHPV GXULQJSXEHUW\(QGHPRVLVDQGGLDEHWHVDUHDOVROLQNHGWRRUJDQRFKORULQHV

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

( 2UJDQLF&RPSRXQGV 0RUHWKDQRUJDQLFFRPSRXQGVHQWHUWKHDWPRVSKHUHLQYDULRXVTXDQWLWLHV HYHU\\HDU$PDMRULW\RIWKHVHDUHVDWXUDWHGDQGXQVDWXUDWHGDOLSKDWLFDQGDURPDWLF K\GURFDUERQVDQGWKHLUGHULYDWLYHVKDYLQJVSHFLILFIXQFWLRQDOJURXSVFRQWDLQLQJ 2163HWF0HWKDQHLVWKHPRVWDEXQGDQWRIWKHVHFRPSRXQGVLQXUEDQDLU 2WKHU LPSRUWDQW RUJDQLF FRPSRXQGV LQFOXGH HWK\OHQH SURS\OHQH DFHW\OHQHV EHQ]HQHWROXHQHV[\OHQHVWHUSHQHVHWF2QFHUHOHDVHGLQWRWKHDWPRVSKHUHWKHVH YDSRXUVFRQGHQVHDVOLTXLGGURSOHWVRUJHWDGVRUEHGRQWKHDFWLYHVLWHVRIVROLG SDUWLFOHV $OLSKDWLF K\GURFDUERQV DUH KDUPOHVV RQ WKHLU RZQ EXW PDQ\ XQGHUJR FKHPLFDOUHDFWLRQVZLWK12[LQSUHVHQFHRIVXQOLJKWWRIRUPSKRWRFKHPLFDOR[LGDQWV LQFOXGLQJ R]RQH 3RO\QXFOHDU DURPDWLF K\GURFDUERQV 3$+  KDYH FKDUDFWHULVWLF REMHFWLRQDEOHRGRXUVDQGWKH\DUHDOVRFDUFLQRJHQLF)RUPDOGHK\GHIRUPLFDFLG DFUROHLQSKRVSKRUXVDQGIOXRULQHFRQWDLQLQJLQVHFWLFLGHVDUHUHODWLYHO\QHZHQWUDQWV LQWKLVFDWHJRU\DQGHYLGHQFHLVPRXQWLQJRQWKHLUFDUFLQRJHQLFSURSHUWLHV

) 3DUWLFXODWHV 6PDOOVROLGVDQGOLTXLGGURSOHWVDUHFROOHFWLYHO\GHVLJQDWHGDVSDUWLFXODWHV7KHLU SDUWLFOHVL]HUDQJHVIURP—±—— ±PHWUH DQGWKHLUFRQFHQWUDWLRQ YDULHVIURPDIHZKXQGUHGWRSHUP/,QXUEDQDQGVHPLXUEDQDUHDVSDUWLFXODWH FRQFHQWUDWLRQUDQJHVIURP±PJP )LQHSDUWLFXODWHPDWWHULQFOXGHVPHWDOYDSRXUVFDUERQWDUUHVLQSROOHQJUDLQV IXQJLEDFWHULDPHWDOOLFR[LGHVQLWUDWHVVXOSKDWHVFKORULGHVIOXRULGHVVLOLFDWHV DQG VHYHUDO RWKHU FRPSRXQGV &RDUVHU SDUWLFXODWHV DUH DOVR VLPLODU H[FHSW WKHLU GLDPHWHUVDUHPRUHWKDQ— ,WKDVEHHQHVWLPDWHGWKDWDERXW±PLOOLRQWRQVRISDUWLFXODWHPDWWHU HQWHULQJ WKH DWPRVSKHUH LV RI QDWXUDO RULJLQ &RQWULEXWLRQ IURP SRZHU SODQWV LQGXVWULDOSURFHVVHVDQGPLVFHOODQHRXVVRXUFHVUDQJHVIURP ±PLOOLRQWRQV 7KHVHSDUWLFXODWHVVFDWWHUYLVLEOHOLJKWDFFRUGLQJWRSK\VLFDOODZVVHUYHDVDGVRUSWLRQ VLWHV IRU RUJDQLF FRPSRXQGV DQG WDNH SDUW LQ FRQGHQVDWLRQ DQG FRDOHVFH ZLWK RWKHUSDUWLFOHVDQGOLTXLGV$FFRUGLQJWRWKHLUFKHPLFDOFKDUDFWHULVWLFVWKH\H[KLELW YDU\LQJGHJUHHVRIWR[LFLW\WRZDUGVSODQWVDQGDQLPDOVSHFLHVFRUURVLYLW\WRPHWDO VWUXFWXUHVDQGRWKHUPDWHULDOV

) 3DUWLFXODWHV 6PDOOVROLGVDQGOLTXLGGURSOHWVDUHFROOHFWLYHO\GHVLJQDWHGDVSDUWLFXODWHV7KHLU SDUWLFOHVL]HUDQJHVIURP—±—— ±PHWUH DQGWKHLUFRQFHQWUDWLRQ YDULHVIURPDIHZKXQGUHGWRSHUP/,QXUEDQDQGVHPLXUEDQDUHDVSDUWLFXODWH FRQFHQWUDWLRQUDQJHVIURP±PJP )LQHSDUWLFXODWHPDWWHULQFOXGHVPHWDOYDSRXUVFDUERQWDUUHVLQSROOHQJUDLQV IXQJLEDFWHULDPHWDOOLFR[LGHVQLWUDWHVVXOSKDWHVFKORULGHVIOXRULGHVVLOLFDWHV DQG VHYHUDO RWKHU FRPSRXQGV &RDUVHU SDUWLFXODWHV DUH DOVR VLPLODU H[FHSW WKHLU GLDPHWHUVDUHPRUHWKDQ— ,WKDVEHHQHVWLPDWHGWKDWDERXW±PLOOLRQWRQVRISDUWLFXODWHPDWWHU HQWHULQJ WKH DWPRVSKHUH LV RI QDWXUDO RULJLQ &RQWULEXWLRQ IURP SRZHU SODQWV LQGXVWULDOSURFHVVHVDQGPLVFHOODQHRXVVRXUFHVUDQJHVIURP ±PLOOLRQWRQV 7KHVHSDUWLFXODWHVVFDWWHUYLVLEOHOLJKWDFFRUGLQJWRSK\VLFDOODZVVHUYHDVDGVRUSWLRQ VLWHV IRU RUJDQLF FRPSRXQGV DQG WDNH SDUW LQ FRQGHQVDWLRQ DQG FRDOHVFH ZLWK RWKHUSDUWLFOHVDQGOLTXLGV$FFRUGLQJWRWKHLUFKHPLFDOFKDUDFWHULVWLFVWKH\H[KLELW YDU\LQJGHJUHHVRIWR[LFLW\WRZDUGVSODQWVDQGDQLPDOVSHFLHVFRUURVLYLW\WRPHWDO VWUXFWXUHVDQGRWKHUPDWHULDOV

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



' +DORJHQ&RPSRXQGV +\GURJHQIOXRULGHK\GURJHQFKORULGHK\GURJHQEURPLGHFKORURIOXRURFDUERQV HWF DUH SURGXFHG LQ PHWDOOXUJLFDO DQG RWKHU LQGXVWULDO SURFHVVHV 7KH\ DUH FRUURVLYHLUULWDWLQJDQGVHYHUHO\GDPDJHWKHFURSVDQGFDWWOH,WKDVEHHQHVWLPDWHG WKDWPRUHWKDQFKORULQHFRQWDLQLQJFKHPLFDOVDUHSURGXFHGGXULQJWKHSURGXFWLRQ DQGEXUQLQJRISDSHU$OPRVWDOOWKHSURFHVVHVLQYROYLQJFKORULQDWHGFKHPLFDOV JHQHUDWHGLR[LQVZKLFKDUHNQRZQFDUFLQRJHQV(YHQWLQ\GRVHVRIGLR[LQVRIWKH RUGHURIDIHZQDQRJUDPVSSEOHYHOV±J DUHFDSDEOHRIFDXVLQJKRUPRQDO LPEDODQFHOHDGLQJWRLQIHUWLOLW\ORZHUVSHUPFRXQWVDQGRWKHUUHSURGXFWLYHSUREOHPV GXULQJSXEHUW\(QGHPRVLVDQGGLDEHWHVDUHDOVROLQNHGWRRUJDQRFKORULQHV

' +DORJHQ&RPSRXQGV +\GURJHQIOXRULGHK\GURJHQFKORULGHK\GURJHQEURPLGHFKORURIOXRURFDUERQV HWF DUH SURGXFHG LQ PHWDOOXUJLFDO DQG RWKHU LQGXVWULDO SURFHVVHV 7KH\ DUH FRUURVLYHLUULWDWLQJDQGVHYHUHO\GDPDJHWKHFURSVDQGFDWWOH,WKDVEHHQHVWLPDWHG WKDWPRUHWKDQFKORULQHFRQWDLQLQJFKHPLFDOVDUHSURGXFHGGXULQJWKHSURGXFWLRQ DQGEXUQLQJRISDSHU$OPRVWDOOWKHSURFHVVHVLQYROYLQJFKORULQDWHGFKHPLFDOV JHQHUDWHGLR[LQVZKLFKDUHNQRZQFDUFLQRJHQV(YHQWLQ\GRVHVRIGLR[LQVRIWKH RUGHURIDIHZQDQRJUDPVSSEOHYHOV±J DUHFDSDEOHRIFDXVLQJKRUPRQDO LPEDODQFHOHDGLQJWRLQIHUWLOLW\ORZHUVSHUPFRXQWVDQGRWKHUUHSURGXFWLYHSUREOHPV GXULQJSXEHUW\(QGHPRVLVDQGGLDEHWHVDUHDOVROLQNHGWRRUJDQRFKORULQHV

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

) 3DUWLFXODWHV 6PDOOVROLGVDQGOLTXLGGURSOHWVDUHFROOHFWLYHO\GHVLJQDWHGDVSDUWLFXODWHV7KHLU SDUWLFOHVL]HUDQJHVIURP—±—— ±PHWUH DQGWKHLUFRQFHQWUDWLRQ YDULHVIURPDIHZKXQGUHGWRSHUP/,QXUEDQDQGVHPLXUEDQDUHDVSDUWLFXODWH FRQFHQWUDWLRQUDQJHVIURP±PJP )LQHSDUWLFXODWHPDWWHULQFOXGHVPHWDOYDSRXUVFDUERQWDUUHVLQSROOHQJUDLQV IXQJLEDFWHULDPHWDOOLFR[LGHVQLWUDWHVVXOSKDWHVFKORULGHVIOXRULGHVVLOLFDWHV DQG VHYHUDO RWKHU FRPSRXQGV &RDUVHU SDUWLFXODWHV DUH DOVR VLPLODU H[FHSW WKHLU GLDPHWHUVDUHPRUHWKDQ— ,WKDVEHHQHVWLPDWHGWKDWDERXW±PLOOLRQWRQVRISDUWLFXODWHPDWWHU HQWHULQJ WKH DWPRVSKHUH LV RI QDWXUDO RULJLQ &RQWULEXWLRQ IURP SRZHU SODQWV LQGXVWULDOSURFHVVHVDQGPLVFHOODQHRXVVRXUFHVUDQJHVIURP ±PLOOLRQWRQV 7KHVHSDUWLFXODWHVVFDWWHUYLVLEOHOLJKWDFFRUGLQJWRSK\VLFDOODZVVHUYHDVDGVRUSWLRQ VLWHV IRU RUJDQLF FRPSRXQGV DQG WDNH SDUW LQ FRQGHQVDWLRQ DQG FRDOHVFH ZLWK RWKHUSDUWLFOHVDQGOLTXLGV$FFRUGLQJWRWKHLUFKHPLFDOFKDUDFWHULVWLFVWKH\H[KLELW YDU\LQJGHJUHHVRIWR[LFLW\WRZDUGVSODQWVDQGDQLPDOVSHFLHVFRUURVLYLW\WRPHWDO VWUXFWXUHVDQGRWKHUPDWHULDOV

) 3DUWLFXODWHV 6PDOOVROLGVDQGOLTXLGGURSOHWVDUHFROOHFWLYHO\GHVLJQDWHGDVSDUWLFXODWHV7KHLU SDUWLFOHVL]HUDQJHVIURP—±—— ±PHWUH DQGWKHLUFRQFHQWUDWLRQ YDULHVIURPDIHZKXQGUHGWRSHUP/,QXUEDQDQGVHPLXUEDQDUHDVSDUWLFXODWH FRQFHQWUDWLRQUDQJHVIURP±PJP )LQHSDUWLFXODWHPDWWHULQFOXGHVPHWDOYDSRXUVFDUERQWDUUHVLQSROOHQJUDLQV IXQJLEDFWHULDPHWDOOLFR[LGHVQLWUDWHVVXOSKDWHVFKORULGHVIOXRULGHVVLOLFDWHV DQG VHYHUDO RWKHU FRPSRXQGV &RDUVHU SDUWLFXODWHV DUH DOVR VLPLODU H[FHSW WKHLU GLDPHWHUVDUHPRUHWKDQ— ,WKDVEHHQHVWLPDWHGWKDWDERXW±PLOOLRQWRQVRISDUWLFXODWHPDWWHU HQWHULQJ WKH DWPRVSKHUH LV RI QDWXUDO RULJLQ &RQWULEXWLRQ IURP SRZHU SODQWV LQGXVWULDOSURFHVVHVDQGPLVFHOODQHRXVVRXUFHVUDQJHVIURP ±PLOOLRQWRQV 7KHVHSDUWLFXODWHVVFDWWHUYLVLEOHOLJKWDFFRUGLQJWRSK\VLFDOODZVVHUYHDVDGVRUSWLRQ VLWHV IRU RUJDQLF FRPSRXQGV DQG WDNH SDUW LQ FRQGHQVDWLRQ DQG FRDOHVFH ZLWK RWKHUSDUWLFOHVDQGOLTXLGV$FFRUGLQJWRWKHLUFKHPLFDOFKDUDFWHULVWLFVWKH\H[KLELW YDU\LQJGHJUHHVRIWR[LFLW\WRZDUGVSODQWVDQGDQLPDOVSHFLHVFRUURVLYLW\WRPHWDO VWUXFWXUHVDQGRWKHUPDWHULDOV



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7KHFRDUVHSDUWLFOHVDUHTXLFNO\UHPRYHGIURPWKHDLUHQYLURQPHQWRZLQJWR JUDYLWDWLRQDOIRUFHVDQGDUHGHSRVLWHGRQEXLOGLQJVVRLOVZDWHUERGLHVFORWKLQJ HWF7KHLUVRLOLQJFDSDELOLW\RIFORWKHVLVPXFKKLJKHUWKDQWKHILQHUSDUWLFXODWHV

7KHFRDUVHSDUWLFOHVDUHTXLFNO\UHPRYHGIURPWKHDLUHQYLURQPHQWRZLQJWR JUDYLWDWLRQDOIRUFHVDQGDUHGHSRVLWHGRQEXLOGLQJVVRLOVZDWHUERGLHVFORWKLQJ HWF7KHLUVRLOLQJFDSDELOLW\RIFORWKHVLVPXFKKLJKHUWKDQWKHILQHUSDUWLFXODWHV

* 5DGLRDFWLYH&RPSRXQGV 5DGLRDFWLYHFRQWDPLQDWLRQRFFXUVIURPQDWXUDOVRXUFHVVXFKDVFRVPLFUD\VIURP RXWHUVSDFHDQG;UD\V7KHHDUWK¶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

* 5DGLRDFWLYH&RPSRXQGV 5DGLRDFWLYHFRQWDPLQDWLRQRFFXUVIURPQDWXUDOVRXUFHVVXFKDVFRVPLFUD\VIURP RXWHUVSDFHDQG;UD\V7KHHDUWK¶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

 6HFRQGDU\ 3ROOXWDQWV

 6HFRQGDU\ 3ROOXWDQWV

$Q\DGGLWLRQRISROOXWDQWVWRWKHDLUHQYLURQPHQWZLOOHYHQWXDOO\EHGLVSHUVHGRU GLVSRVHG LQ VXFK D ZD\ WKDW WKH V\VWHP TXLFNO\ DWWDLQV PLQLPXP IUHH HQHUJ\ 'XULQJ WKLV SURFHVV KHDYLHU SDUWLFXODWHV ZLOO VHWWOH GRZQ RQ WKH HDUWK¶V FUXVW 5HPDLQLQJILQHUSDUWLFXODWHVDQGJDVHRXVSROOXWDQWVZLOOEHLQYROYHGLQDVHULHVRI FRPSOH[FKHPLFDOUHDFWLRQVXQGHUWKHLQIOXHQFHRISKRWRFDWDO\VLVPHWHRURORJLFDO GLVSHUVLRQV DYDLODEOH PRLVWXUH DQG SUHYDLOLQJ WRSRJUDSK\ 7KH FRQFHQWUDWLRQV UHDFWLRQUDWHVDQGFKHPLFDOPHFKDQLVPVZLOODOVRSOD\DQLPSRUWDQWUROHLQWKH

$Q\DGGLWLRQRISROOXWDQWVWRWKHDLUHQYLURQPHQWZLOOHYHQWXDOO\EHGLVSHUVHGRU GLVSRVHG LQ VXFK D ZD\ WKDW WKH V\VWHP TXLFNO\ DWWDLQV PLQLPXP IUHH HQHUJ\ 'XULQJ WKLV SURFHVV KHDYLHU SDUWLFXODWHV ZLOO VHWWOH GRZQ RQ WKH HDUWK¶V FUXVW 5HPDLQLQJILQHUSDUWLFXODWHVDQGJDVHRXVSROOXWDQWVZLOOEHLQYROYHGLQDVHULHVRI FRPSOH[FKHPLFDOUHDFWLRQVXQGHUWKHLQIOXHQFHRISKRWRFDWDO\VLVPHWHRURORJLFDO GLVSHUVLRQV DYDLODEOH PRLVWXUH DQG SUHYDLOLQJ WRSRJUDSK\ 7KH FRQFHQWUDWLRQV UHDFWLRQUDWHVDQGFKHPLFDOPHFKDQLVPVZLOODOVRSOD\DQLPSRUWDQWUROHLQWKH





3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7KHFRDUVHSDUWLFOHVDUHTXLFNO\UHPRYHGIURPWKHDLUHQYLURQPHQWRZLQJWR JUDYLWDWLRQDOIRUFHVDQGDUHGHSRVLWHGRQEXLOGLQJVVRLOVZDWHUERGLHVFORWKLQJ HWF7KHLUVRLOLQJFDSDELOLW\RIFORWKHVLVPXFKKLJKHUWKDQWKHILQHUSDUWLFXODWHV

7KHFRDUVHSDUWLFOHVDUHTXLFNO\UHPRYHGIURPWKHDLUHQYLURQPHQWRZLQJWR JUDYLWDWLRQDOIRUFHVDQGDUHGHSRVLWHGRQEXLOGLQJVVRLOVZDWHUERGLHVFORWKLQJ HWF7KHLUVRLOLQJFDSDELOLW\RIFORWKHVLVPXFKKLJKHUWKDQWKHILQHUSDUWLFXODWHV

* 5DGLRDFWLYH&RPSRXQGV 5DGLRDFWLYHFRQWDPLQDWLRQRFFXUVIURPQDWXUDOVRXUFHVVXFKDVFRVPLFUD\VIURP RXWHUVSDFHDQG;UD\V7KHHDUWK¶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

* 5DGLRDFWLYH&RPSRXQGV 5DGLRDFWLYHFRQWDPLQDWLRQRFFXUVIURPQDWXUDOVRXUFHVVXFKDVFRVPLFUD\VIURP RXWHUVSDFHDQG;UD\V7KHHDUWK¶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

 6HFRQGDU\ 3ROOXWDQWV

 6HFRQGDU\ 3ROOXWDQWV

$Q\DGGLWLRQRISROOXWDQWVWRWKHDLUHQYLURQPHQWZLOOHYHQWXDOO\EHGLVSHUVHGRU GLVSRVHG LQ VXFK D ZD\ WKDW WKH V\VWHP TXLFNO\ DWWDLQV PLQLPXP IUHH HQHUJ\ 'XULQJ WKLV SURFHVV KHDYLHU SDUWLFXODWHV ZLOO VHWWOH GRZQ RQ WKH HDUWK¶V FUXVW 5HPDLQLQJILQHUSDUWLFXODWHVDQGJDVHRXVSROOXWDQWVZLOOEHLQYROYHGLQDVHULHVRI FRPSOH[FKHPLFDOUHDFWLRQVXQGHUWKHLQIOXHQFHRISKRWRFDWDO\VLVPHWHRURORJLFDO GLVSHUVLRQV DYDLODEOH PRLVWXUH DQG SUHYDLOLQJ WRSRJUDSK\ 7KH FRQFHQWUDWLRQV UHDFWLRQUDWHVDQGFKHPLFDOPHFKDQLVPVZLOODOVRSOD\DQLPSRUWDQWUROHLQWKH

$Q\DGGLWLRQRISROOXWDQWVWRWKHDLUHQYLURQPHQWZLOOHYHQWXDOO\EHGLVSHUVHGRU GLVSRVHG LQ VXFK D ZD\ WKDW WKH V\VWHP TXLFNO\ DWWDLQV PLQLPXP IUHH HQHUJ\ 'XULQJ WKLV SURFHVV KHDYLHU SDUWLFXODWHV ZLOO VHWWOH GRZQ RQ WKH HDUWK¶V FUXVW 5HPDLQLQJILQHUSDUWLFXODWHVDQGJDVHRXVSROOXWDQWVZLOOEHLQYROYHGLQDVHULHVRI FRPSOH[FKHPLFDOUHDFWLRQVXQGHUWKHLQIOXHQFHRISKRWRFDWDO\VLVPHWHRURORJLFDO GLVSHUVLRQV DYDLODEOH PRLVWXUH DQG SUHYDLOLQJ WRSRJUDSK\ 7KH FRQFHQWUDWLRQV UHDFWLRQUDWHVDQGFKHPLFDOPHFKDQLVPVZLOODOVRSOD\DQLPSRUWDQWUROHLQWKH

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



V\QWKHVLV RI ILQDO SURGXFWV 7KXV D YDULHW\ RI UHDFWLRQV PD\ RFFXU LQ WKH HQYLURQPHQWDVVKRZQEHORZ 0;±o0;)RUPDWLRQRIDKDOLGHVDOW



$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



V\QWKHVLV RI ILQDO SURGXFWV 7KXV D YDULHW\ RI UHDFWLRQV PD\ RFFXU LQ WKH HQYLURQPHQWDVVKRZQEHORZ 0;±o0;)RUPDWLRQRIDKDOLGHVDOW



622+2o+626ROXWLRQUHDFWLRQLQSUHVHQFHRIPRLVWXUH 

622+2o+626ROXWLRQUHDFWLRQLQSUHVHQFHRIPRLVWXUH 

0 62>2@+2  o +62Â00HWDOFDWDO\]HGUHDFWLRQ

0 62>2@+2  o +62Â00HWDOFDWDO\]HGUHDFWLRQ

  KQ 12  o  12   2 )UHHUDGLFDOIRUPDWLRQ

  

  KQ 12  o  12   2 )UHHUDGLFDOIRUPDWLRQ

  

6RPHRIWKHVHFRQGDU\SROOXWDQWVSURGXFHGE\VXFKUHDFWLRQVLQFOXGHR]RQH IRUPDOGHK\GHK\GURSHUR[LGHVSHUR[\DF\OQLWUDWHVDQGWKHPRVWGDQJHURXVRIDOO IUHH UDGLFDOV 7KH SDWKZD\V DQG UHDFWLRQ PHFKDQLVPV RI WKH IRUPDWLRQ RI VXFK FRPSRXQGVLVDPDMRUDUHDRIUHVHDUFK

6RPHRIWKHVHFRQGDU\SROOXWDQWVSURGXFHGE\VXFKUHDFWLRQVLQFOXGHR]RQH IRUPDOGHK\GHK\GURSHUR[LGHVSHUR[\DF\OQLWUDWHVDQGWKHPRVWGDQJHURXVRIDOO IUHH UDGLFDOV 7KH SDWKZD\V DQG UHDFWLRQ PHFKDQLVPV RI WKH IRUPDWLRQ RI VXFK FRPSRXQGVLVDPDMRUDUHDRIUHVHDUFK

 6285&(&/$66,),&$7,21

 6285&(&/$66,),&$7,21

3ROOXWDQWVFDQDOVREHFODVVLILHGDFFRUGLQJWRWKHLUVRXUFHV7DEOHVKRZVDOLVW RIPDMRUDQWKURSRJHQLFDLUSROOXWLRQVRXUFHV7KHPRVWLPSRUWDQWRIWKHVHUHODWH WRFRPEXVWLRQ7KHFRUUHVSRQGLQJHPLVVLRQVDUH6212[&2DQGSDUWLFXODWHV 6PDOO TXDQWLWLHV RI ZDWHU YDSRXU PHUFXU\ OHDG FDGPLXP DOGHK\GHV EHQ]D S\UHQHVDQGK\GURFDUERQVDUHDOVRHPLWWHG> ±@ &KHPLFDODQGPHWDOOXUJLFDOLQGXVWULHVHPLWODUJHTXDQWLWLHVRIVXOSKXUGLR[LGH 62 GXULQJURDVWLQJDQGVXEVHTXHQWWUHDWPHQWRIQRQIHUURXVVXOSKLGHPLQHUDOV RIFRSSHUOHDGDQG]LQF'XVWPHWDOR[LGHVDQGPHWDOOLFYDSRXUVDUHWKHRWKHU VLJQLILFDQWHPLVVLRQV (PLVVLRQVIURPWKHLURQDQGVWHHOLQGXVWU\LQFOXGHGXVWIXPHVK\GURFDUERQV WDUV+6&2&2DQG62+D]DUGRXVGXVWHPLVVLRQVDUHSURPLQHQWLQFHPHQW DOXPLQLXPJODVVFHUDPLFVDQGUHIUDFWRU\LQGXVWULHV7KHVHHPLVVLRQVDULVHIURP XQRUJDQL]HGVHFWRUVVXFKDVPLQLQJFUXVKLQJWUDQVSRUWDQGVWRUDJHRIPDWHULDOV &KHPLFDOSURFHVVLQGXVWULHVHPLWDZLGHYDULHW\RIDLUSROOXWDQWVVXFKDV62 62±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

3ROOXWDQWVFDQDOVREHFODVVLILHGDFFRUGLQJWRWKHLUVRXUFHV7DEOHVKRZVDOLVW RIPDMRUDQWKURSRJHQLFDLUSROOXWLRQVRXUFHV7KHPRVWLPSRUWDQWRIWKHVHUHODWH WRFRPEXVWLRQ7KHFRUUHVSRQGLQJHPLVVLRQVDUH6212[&2DQGSDUWLFXODWHV 6PDOO TXDQWLWLHV RI ZDWHU YDSRXU PHUFXU\ OHDG FDGPLXP DOGHK\GHV EHQ]D S\UHQHVDQGK\GURFDUERQVDUHDOVRHPLWWHG> ±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±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

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



V\QWKHVLV RI ILQDO SURGXFWV 7KXV D YDULHW\ RI UHDFWLRQV PD\ RFFXU LQ WKH HQYLURQPHQWDVVKRZQEHORZ 0;±o0;)RUPDWLRQRIDKDOLGHVDOW



$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



V\QWKHVLV RI ILQDO SURGXFWV 7KXV D YDULHW\ RI UHDFWLRQV PD\ RFFXU LQ WKH HQYLURQPHQWDVVKRZQEHORZ 0;±o0;)RUPDWLRQRIDKDOLGHVDOW



622+2o+626ROXWLRQUHDFWLRQLQSUHVHQFHRIPRLVWXUH 

622+2o+626ROXWLRQUHDFWLRQLQSUHVHQFHRIPRLVWXUH 

0 62>2@+2  o +62Â00HWDOFDWDO\]HGUHDFWLRQ

0 62>2@+2  o +62Â00HWDOFDWDO\]HGUHDFWLRQ

  KQ 12  o  12   2 )UHHUDGLFDOIRUPDWLRQ

  

  KQ 12  o  12   2 )UHHUDGLFDOIRUPDWLRQ

  

6RPHRIWKHVHFRQGDU\SROOXWDQWVSURGXFHGE\VXFKUHDFWLRQVLQFOXGHR]RQH IRUPDOGHK\GHK\GURSHUR[LGHVSHUR[\DF\OQLWUDWHVDQGWKHPRVWGDQJHURXVRIDOO IUHH UDGLFDOV 7KH SDWKZD\V DQG UHDFWLRQ PHFKDQLVPV RI WKH IRUPDWLRQ RI VXFK FRPSRXQGVLVDPDMRUDUHDRIUHVHDUFK

6RPHRIWKHVHFRQGDU\SROOXWDQWVSURGXFHGE\VXFKUHDFWLRQVLQFOXGHR]RQH IRUPDOGHK\GHK\GURSHUR[LGHVSHUR[\DF\OQLWUDWHVDQGWKHPRVWGDQJHURXVRIDOO IUHH UDGLFDOV 7KH SDWKZD\V DQG UHDFWLRQ PHFKDQLVPV RI WKH IRUPDWLRQ RI VXFK FRPSRXQGVLVDPDMRUDUHDRIUHVHDUFK

 6285&(&/$66,),&$7,21

 6285&(&/$66,),&$7,21

3ROOXWDQWVFDQDOVREHFODVVLILHGDFFRUGLQJWRWKHLUVRXUFHV7DEOHVKRZVDOLVW RIPDMRUDQWKURSRJHQLFDLUSROOXWLRQVRXUFHV7KHPRVWLPSRUWDQWRIWKHVHUHODWH WRFRPEXVWLRQ7KHFRUUHVSRQGLQJHPLVVLRQVDUH6212[&2DQGSDUWLFXODWHV 6PDOO TXDQWLWLHV RI ZDWHU YDSRXU PHUFXU\ OHDG FDGPLXP DOGHK\GHV EHQ]D S\UHQHVDQGK\GURFDUERQVDUHDOVRHPLWWHG> ±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±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

3ROOXWDQWVFDQDOVREHFODVVLILHGDFFRUGLQJWRWKHLUVRXUFHV7DEOHVKRZVDOLVW RIPDMRUDQWKURSRJHQLFDLUSROOXWLRQVRXUFHV7KHPRVWLPSRUWDQWRIWKHVHUHODWH WRFRPEXVWLRQ7KHFRUUHVSRQGLQJHPLVVLRQVDUH6212[&2DQGSDUWLFXODWHV 6PDOO TXDQWLWLHV RI ZDWHU YDSRXU PHUFXU\ OHDG FDGPLXP DOGHK\GHV EHQ]D S\UHQHVDQGK\GURFDUERQVDUHDOVRHPLWWHG> ±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±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



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH  $QWKURSRJHQLF VRXUFHV RI DLU SROOXWLRQ



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH  $QWKURSRJHQLF VRXUFHV RI DLU SROOXWLRQ

6RXUFH W\SH

&ODVVLILFDWLRQV

2SHUDWLRQV

7\SLFDOSROOXWDQWV

6RXUFH W\SH

&ODVVLILFDWLRQV

2SHUDWLRQV

7\SLFDOSROOXWDQWV

&RPEXVWLRQ

6WDWLRQDU\

3RZHU SODQWV LQGXVWULDO ERLOHUV GLHVHO JHQHUDWRUV PXQLFLSDORULQGXVWULDO LQFLQHUDWLRQV UHIXVH EXUQLQJ

2[LGHV RI VXOSKXU 12[&2VPRNHIO\DVK WUDFHPHWDOR[LGHV

&RPEXVWLRQ

6WDWLRQDU\

3RZHU SODQWV LQGXVWULDO ERLOHUV GLHVHO JHQHUDWRUV PXQLFLSDORULQGXVWULDO LQFLQHUDWLRQV UHIXVH EXUQLQJ

2[LGHV RI VXOSKXU 12[&2VPRNHIO\DVK WUDFHPHWDOR[LGHV

0RELOH

0RWRU YHKLFOHV DLU FUDIW VKLSV WUDLQV HWF

&2K\GURFDUERQV12[ 62 SDUWLFXODWHV ZDWHU YDSRXU

0RELOH

0RWRU YHKLFOHV DLU FUDIW VKLSV WUDLQV HWF

&2K\GURFDUERQV12[ 62 SDUWLFXODWHV ZDWHU YDSRXU

1RQIHUURXV

5RDVWLQJVPHOWLQJDQG UHILQLQJ RSHUDWLRQV

'XVWVPRNHPHWDO IXPHV&X3EDQG =Q  R[LGHV RI VXOSKXU

1RQIHUURXV

5RDVWLQJVPHOWLQJDQG UHILQLQJ RSHUDWLRQV

'XVWVPRNHPHWDO IXPHV&X3EDQG =Q  R[LGHV RI VXOSKXU

)HUURXV

0DWHULDOKDQGOLQJRUH VLQWHULQJDQGSHOOHWLVLQJ FRNH RYHQV EODVW IXUQDFH VWHHO IXUQDFHV

6PRNHIXPHV&2 RGRXUV+2RUJDQLF YDSRXUV IORXULGHV

)HUURXV

0DWHULDOKDQGOLQJRUH VLQWHULQJDQGSHOOHWLVLQJ FRNH RYHQV EODVW IXUQDFH VWHHO IXUQDFHV

6PRNHIXPHV&2 RGRXUV+2RUJDQLF YDSRXUV IORXULGHV

1RQPHWDOOLF PLQHUDOV

&UXVKHG VWRQH JUDYHO DQG VDQG SURFHVVLQJ FHPHQW JODVV UHIUDFWRULHV DQG FHUDPLFV PDQXIDFWXUH FRDOFOHDQLQJ

0LQHUDODQGRUJDQLF SDUWLFXODWHV6212[ GXVW IXPHV

1RQPHWDOOLF PLQHUDOV

&UXVKHG VWRQH JUDYHO DQG VDQG SURFHVVLQJ FHPHQW JODVV UHIUDFWRULHV DQG FHUDPLFV PDQXIDFWXUH FRDOFOHDQLQJ

0LQHUDODQGRUJDQLF SDUWLFXODWHV6212[ GXVW IXPHV

3HWUROHXP UHILQLQJ

%RLOHUV SURFHVV KHDWHUV FDWDO\VW UHJHQHUDWRUV IODUHV UHDFWRUV VWRUDJH WDQNV FRPSUHVVRU HQJLQHV

2[LGHV RI VXOSKXU K\GURFDUERQV 12[ SDUWLFXODWHPDWWHU &2DOGHK\GHVDPPRQLD RGRXUV

3HWUROHXP UHILQLQJ

%RLOHUV SURFHVV KHDWHUV FDWDO\VW UHJHQHUDWRUV IODUHV UHDFWRUV VWRUDJH WDQNV FRPSUHVVRU HQJLQHV

2[LGHV RI VXOSKXU K\GURFDUERQV 12[ SDUWLFXODWHPDWWHU &2DOGHK\GHVDPPRQLD RGRXUV

,QRUJDQLF FKHPLFDOV

6XOSKXULFDFLGSODQWV )HUWLOL]HU PDQXIDFWXUH 1LWULFDFLGDQGDPPRQLD SODQWVSKRVSKRULFDFLG PDQXIDFWXUH

62+)+612[ 1+SDUWLFXODWH PDWWHU+32HWF

,QRUJDQLF FKHPLFDOV

6XOSKXULFDFLGSODQWV )HUWLOL]HU PDQXIDFWXUH 1LWULFDFLGDQGDPPRQLD SODQWVSKRVSKRULFDFLG PDQXIDFWXUH

62+)+612[ 1+SDUWLFXODWH PDWWHU+32HWF

2UJDQLF 3ODVWLFVSDLQWDQG FKHPLFDOV YDUQLVK PDQXIDFWXUH V\QWKHWLF UXEEHU UD\RQ LQVHFWLFLGH VRDS DQG GHWHUJHQW PDQXIDFWXUH PHWKDQROSKHQROHWF

3DUWLFXODWHPDWWHU RGRXUV62&2 RUJDQLF LQWHUPHGLDWHV 'XFW JDVHV DQG YDSRXUV VROYHQW YDSRXUV HWF

2UJDQLF 3ODVWLFVSDLQWDQG FKHPLFDOV YDUQLVK PDQXIDFWXUH V\QWKHWLF UXEEHU UD\RQ LQVHFWLFLGH VRDS DQG GHWHUJHQW PDQXIDFWXUH PHWKDQROSKHQROHWF

3DUWLFXODWHPDWWHU RGRXUV62&2 RUJDQLF LQWHUPHGLDWHV 'XFW JDVHV DQG YDSRXUV VROYHQW YDSRXUV HWF

3XOSDQG SDSHU .UDIW SURFHVV

'LJHVWHU EORZGRZQ V\VWHP SXOS ZDVKHUV VROYHQW UHFRYHU\ HYDSRUDWRUV R[LGDWLRQ WRZHUV

3DUWLFXODWHPDWWHU RGRXURXV VXOSKXU FRPSRXQGV+6 PHWK\OPHUFDSWDQV GHPHWK\OVXOSKLGH DQG 62VXOSKLWHSURFHVV

3XOSDQG SDSHU .UDIW SURFHVV

'LJHVWHU EORZGRZQ V\VWHP SXOS ZDVKHUV VROYHQW UHFRYHU\ HYDSRUDWRUV R[LGDWLRQ WRZHUV

3DUWLFXODWHPDWWHU RGRXURXV VXOSKXU FRPSRXQGV+6 PHWK\OPHUFDSWDQV GHPHWK\OVXOSKLGH DQG 62VXOSKLWHSURFHVV

'U\LQJ SUHVHUYLQJ VSUD\LQJ

9DSRXUV RGRXUV GXVWV LQVHFWLFLGHV ZHHGLFLGHV SHVWLFLGHV SKRVSKDWHV &)&VPHWDOVVPRNH IO\DVK VRRW HWF

'U\LQJ SUHVHUYLQJ VSUD\LQJ

9DSRXUV RGRXUV GXVWV LQVHFWLFLGHV ZHHGLFLGHV SHVWLFLGHV SKRVSKDWHV &)&VPHWDOVVPRNH IO\DVK VRRW HWF

5RDVWLQJDQG KHDWLQJ SURFHVVHV

&KHPLFDOV SHWUROHXP SDSHU SXOS

)RRG SURFHVVLQJ %XUQLQJ DQG SURGXFWLRQ DJULFXOWXUDO RSHUDWLRQV



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH  $QWKURSRJHQLF VRXUFHV RI DLU SROOXWLRQ

5RDVWLQJDQG KHDWLQJ SURFHVVHV

&KHPLFDOV SHWUROHXP SDSHU SXOS

)RRG SURFHVVLQJ %XUQLQJ DQG SURGXFWLRQ DJULFXOWXUDO RSHUDWLRQV



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH  $QWKURSRJHQLF VRXUFHV RI DLU SROOXWLRQ

6RXUFH W\SH

&ODVVLILFDWLRQV

2SHUDWLRQV

7\SLFDOSROOXWDQWV

6RXUFH W\SH

&ODVVLILFDWLRQV

2SHUDWLRQV

7\SLFDOSROOXWDQWV

&RPEXVWLRQ

6WDWLRQDU\

3RZHU SODQWV LQGXVWULDO ERLOHUV GLHVHO JHQHUDWRUV PXQLFLSDORULQGXVWULDO LQFLQHUDWLRQV UHIXVH EXUQLQJ

2[LGHV RI VXOSKXU 12[&2VPRNHIO\DVK WUDFHPHWDOR[LGHV

&RPEXVWLRQ

6WDWLRQDU\

3RZHU SODQWV LQGXVWULDO ERLOHUV GLHVHO JHQHUDWRUV PXQLFLSDORULQGXVWULDO LQFLQHUDWLRQV UHIXVH EXUQLQJ

2[LGHV RI VXOSKXU 12[&2VPRNHIO\DVK WUDFHPHWDOR[LGHV

0RELOH

0RWRU YHKLFOHV DLU FUDIW VKLSV WUDLQV HWF

&2K\GURFDUERQV12[ 62 SDUWLFXODWHV ZDWHU YDSRXU

0RELOH

0RWRU YHKLFOHV DLU FUDIW VKLSV WUDLQV HWF

&2K\GURFDUERQV12[ 62 SDUWLFXODWHV ZDWHU YDSRXU

1RQIHUURXV

5RDVWLQJVPHOWLQJDQG UHILQLQJ RSHUDWLRQV

'XVWVPRNHPHWDO IXPHV&X3EDQG =Q  R[LGHV RI VXOSKXU

1RQIHUURXV

5RDVWLQJVPHOWLQJDQG UHILQLQJ RSHUDWLRQV

'XVWVPRNHPHWDO IXPHV&X3EDQG =Q  R[LGHV RI VXOSKXU

)HUURXV

0DWHULDOKDQGOLQJRUH VLQWHULQJDQGSHOOHWLVLQJ FRNH RYHQV EODVW IXUQDFH VWHHO IXUQDFHV

6PRNHIXPHV&2 RGRXUV+2RUJDQLF YDSRXUV IORXULGHV

)HUURXV

0DWHULDOKDQGOLQJRUH VLQWHULQJDQGSHOOHWLVLQJ FRNH RYHQV EODVW IXUQDFH VWHHO IXUQDFHV

6PRNHIXPHV&2 RGRXUV+2RUJDQLF YDSRXUV IORXULGHV

1RQPHWDOOLF PLQHUDOV

&UXVKHG VWRQH JUDYHO DQG VDQG SURFHVVLQJ FHPHQW JODVV UHIUDFWRULHV DQG FHUDPLFV PDQXIDFWXUH FRDOFOHDQLQJ

0LQHUDODQGRUJDQLF SDUWLFXODWHV6212[ GXVW IXPHV

1RQPHWDOOLF PLQHUDOV

&UXVKHG VWRQH JUDYHO DQG VDQG SURFHVVLQJ FHPHQW JODVV UHIUDFWRULHV DQG FHUDPLFV PDQXIDFWXUH FRDOFOHDQLQJ

0LQHUDODQGRUJDQLF SDUWLFXODWHV6212[ GXVW IXPHV

3HWUROHXP UHILQLQJ

%RLOHUV SURFHVV KHDWHUV FDWDO\VW UHJHQHUDWRUV IODUHV UHDFWRUV VWRUDJH WDQNV FRPSUHVVRU HQJLQHV

2[LGHV RI VXOSKXU K\GURFDUERQV 12[ SDUWLFXODWHPDWWHU &2DOGHK\GHVDPPRQLD RGRXUV

3HWUROHXP UHILQLQJ

%RLOHUV SURFHVV KHDWHUV FDWDO\VW UHJHQHUDWRUV IODUHV UHDFWRUV VWRUDJH WDQNV FRPSUHVVRU HQJLQHV

2[LGHV RI VXOSKXU K\GURFDUERQV 12[ SDUWLFXODWHPDWWHU &2DOGHK\GHVDPPRQLD RGRXUV

,QRUJDQLF FKHPLFDOV

6XOSKXULFDFLGSODQWV )HUWLOL]HU PDQXIDFWXUH 1LWULFDFLGDQGDPPRQLD SODQWVSKRVSKRULFDFLG PDQXIDFWXUH

62+)+612[ 1+SDUWLFXODWH PDWWHU+32HWF

,QRUJDQLF FKHPLFDOV

6XOSKXULFDFLGSODQWV )HUWLOL]HU PDQXIDFWXUH 1LWULFDFLGDQGDPPRQLD SODQWVSKRVSKRULFDFLG PDQXIDFWXUH

62+)+612[ 1+SDUWLFXODWH PDWWHU+32HWF

2UJDQLF 3ODVWLFVSDLQWDQG FKHPLFDOV YDUQLVK PDQXIDFWXUH V\QWKHWLF UXEEHU UD\RQ LQVHFWLFLGH VRDS DQG GHWHUJHQW PDQXIDFWXUH PHWKDQROSKHQROHWF

3DUWLFXODWHPDWWHU RGRXUV62&2 RUJDQLF LQWHUPHGLDWHV 'XFW JDVHV DQG YDSRXUV VROYHQW YDSRXUV HWF

2UJDQLF 3ODVWLFVSDLQWDQG FKHPLFDOV YDUQLVK PDQXIDFWXUH V\QWKHWLF UXEEHU UD\RQ LQVHFWLFLGH VRDS DQG GHWHUJHQW PDQXIDFWXUH PHWKDQROSKHQROHWF

3DUWLFXODWHPDWWHU RGRXUV62&2 RUJDQLF LQWHUPHGLDWHV 'XFW JDVHV DQG YDSRXUV VROYHQW YDSRXUV HWF

3XOSDQG SDSHU .UDIW SURFHVV

'LJHVWHU EORZGRZQ V\VWHP SXOS ZDVKHUV VROYHQW UHFRYHU\ HYDSRUDWRUV R[LGDWLRQ WRZHUV

3DUWLFXODWHPDWWHU RGRXURXV VXOSKXU FRPSRXQGV+6 PHWK\OPHUFDSWDQV GHPHWK\OVXOSKLGH DQG 62VXOSKLWHSURFHVV

3XOSDQG SDSHU .UDIW SURFHVV

'LJHVWHU EORZGRZQ V\VWHP SXOS ZDVKHUV VROYHQW UHFRYHU\ HYDSRUDWRUV R[LGDWLRQ WRZHUV

3DUWLFXODWHPDWWHU RGRXURXV VXOSKXU FRPSRXQGV+6 PHWK\OPHUFDSWDQV GHPHWK\OVXOSKLGH DQG 62VXOSKLWHSURFHVV

'U\LQJ SUHVHUYLQJ VSUD\LQJ

9DSRXUV RGRXUV GXVWV LQVHFWLFLGHV ZHHGLFLGHV SHVWLFLGHV SKRVSKDWHV &)&VPHWDOVVPRNH IO\DVK VRRW HWF

'U\LQJ SUHVHUYLQJ VSUD\LQJ

9DSRXUV RGRXUV GXVWV LQVHFWLFLGHV ZHHGLFLGHV SHVWLFLGHV SKRVSKDWHV &)&VPHWDOVVPRNH IO\DVK VRRW HWF

5RDVWLQJDQG KHDWLQJ SURFHVVHV

&KHPLFDOV SHWUROHXP SDSHU SXOS

)RRG SURFHVVLQJ %XUQLQJ DQG SURGXFWLRQ DJULFXOWXUDO RSHUDWLRQV

5RDVWLQJDQG KHDWLQJ SURFHVVHV

&KHPLFDOV SHWUROHXP SDSHU SXOS

)RRG SURFHVVLQJ %XUQLQJ DQG SURGXFWLRQ DJULFXOWXUDO RSHUDWLRQV

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



 6285&(*5283,1*

 6285&(*5283,1*

$LU SROOXWLRQ VRXUFHV FDQ DOVR EH JURXSHG DFFRUGLQJ WR WKH QXPEHU DQG VSDWLDO GLVWULEXWLRQ7KHVHLQFOXGHVLQJOHRUSRLQWVRXUFHVRUPXOWLSOHSRLQWVRXUFHVIRU ODUJHULQGXVWULHVLQGXVWULDOHVWDWHVFLWLHVVWDWHVHWF7KHVHPD\DOVRLQFOXGHOLQH VRXUFHVVXFKDVKLJKZD\VRFHDQURXWHVDLUIOLJKWURXWHVHWF $QRWKHUW\SHRIVRXUFHJURXSLQJLVE\WKHFKHPLFDOVSHFLHV7KXVDOOHPLVVLRQV EHORQJLQJWRSDUWLFXODUFKHPLFDOVSHFLHVPD\EHJURXSHGWRJHWKHU([DPSOHVLQFOXGH SDUWLFXODWHVJDVHRXVHPLVVLRQVRUJDQLFHPLVVLRQVHWF

$LU SROOXWLRQ VRXUFHV FDQ DOVR EH JURXSHG DFFRUGLQJ WR WKH QXPEHU DQG VSDWLDO GLVWULEXWLRQ7KHVHLQFOXGHVLQJOHRUSRLQWVRXUFHVRUPXOWLSOHSRLQWVRXUFHVIRU ODUJHULQGXVWULHVLQGXVWULDOHVWDWHVFLWLHVVWDWHVHWF7KHVHPD\DOVRLQFOXGHOLQH VRXUFHVVXFKDVKLJKZD\VRFHDQURXWHVDLUIOLJKWURXWHVHWF $QRWKHUW\SHRIVRXUFHJURXSLQJLVE\WKHFKHPLFDOVSHFLHV7KXVDOOHPLVVLRQV EHORQJLQJWRSDUWLFXODUFKHPLFDOVSHFLHVPD\EHJURXSHGWRJHWKHU([DPSOHVLQFOXGH SDUWLFXODWHVJDVHRXVHPLVVLRQVRUJDQLFHPLVVLRQVHWF

 (0,66,216285&(62)32//87$176

 (0,66,216285&(62)32//87$176

,WLVQRWSRVVLEOHWRHVWLPDWHWKHFRXQWU\ZLVHHPLVVLRQVDQGFRPSXWHJOREDOORDGLQJ RI SROOXWDQWV 7R JHQHUDWH VXFK GDWD RQH KDV WR VWXG\ WKH PDMRU UDZ PDWHULDO FRQVXPSWLRQV DQG SURFHVV HPLVVLRQV )RU H[DPSOH LW LV ZHOO NQRZQ WKDW FRDO FRPEXVWLRQLVDPDMRUIDFWRULQSURGXFLQJSDUWLFXODWHVVXFKDVFDUERQVLOLFD6L2  DOXPLQDLURQR[LGHVFDOFLXPR[LGHVHWF $YHUDJHHPLVVLRQIDFWRUVPD\EHHVWLPDWHGIRUWKHUPDOSRZHUVWDWLRQVGHSHQGLQJ RQWKHSRZHUJHQHUDWLRQFDSDFLW\6LQFHJRRGTXDOLW\FRDOSURGXFHVDERXW %WXOEDQGSRZHUSODQWVJHQHUDWHî%WXKULWLVSRVVLEOHWRJHQHUDWHHPLVVLRQ IDFWRUVE\PHDVXULQJWKHFRQVXPSWLRQRIFRDODQGFRPSXWLQJWKHWRWDOHPLVVLRQV 6LPLODUO\HPLVVLRQIDFWRUVPD\EHJHQHUDWHGIRURWKHUSROOXWDQWVDOVR7DEOH JLYHVDOLVWRIVXFKHPLVVLRQIDFWRUV

,WLVQRWSRVVLEOHWRHVWLPDWHWKHFRXQWU\ZLVHHPLVVLRQVDQGFRPSXWHJOREDOORDGLQJ RI SROOXWDQWV 7R JHQHUDWH VXFK GDWD RQH KDV WR VWXG\ WKH PDMRU UDZ PDWHULDO FRQVXPSWLRQV DQG SURFHVV HPLVVLRQV )RU H[DPSOH LW LV ZHOO NQRZQ WKDW FRDO FRPEXVWLRQLVDPDMRUIDFWRULQSURGXFLQJSDUWLFXODWHVVXFKDVFDUERQVLOLFD6L2  DOXPLQDLURQR[LGHVFDOFLXPR[LGHVHWF $YHUDJHHPLVVLRQIDFWRUVPD\EHHVWLPDWHGIRUWKHUPDOSRZHUVWDWLRQVGHSHQGLQJ RQWKHSRZHUJHQHUDWLRQFDSDFLW\6LQFHJRRGTXDOLW\FRDOSURGXFHVDERXW %WXOEDQGSRZHUSODQWVJHQHUDWHî%WXKULWLVSRVVLEOHWRJHQHUDWHHPLVVLRQ IDFWRUVE\PHDVXULQJWKHFRQVXPSWLRQRIFRDODQGFRPSXWLQJWKHWRWDOHPLVVLRQV 6LPLODUO\HPLVVLRQIDFWRUVPD\EHJHQHUDWHGIRURWKHUSROOXWDQWVDOVR7DEOH JLYHVDOLVWRIVXFKHPLVVLRQIDFWRUV

7DEOH  (PLVVLRQ IDFWRUV IRU FRPEXVWLRQ IXHOV >@

7DEOH  (PLVVLRQ IDFWRUV IRU FRPEXVWLRQ IXHOV >@

&RDO

1DWXUDO*DV

)XHO2LO

$XWRPRELOHV

'LHVHO(QJLQHV

3DUWLFXODWHV

±—









$OGHK\GHV

3DUDPHWHU

&RDO

1DWXUDO*DV

)XHO2LO

$XWRPRELOHV

'LHVHO(QJLQHV

3DUWLFXODWHV

±—









3DUDPHWHU

$









$OGHK\GHV

$









&DUERQPRQR[LGH

$

1HJOLJLEOH







&DUERQPRQR[LGH

$

1HJOLJLEOH







1LWURJHQR[LGHV

$









1LWURJHQR[LGHV

$









6XOSKXUGLR[LGH

$



6





6XOSKXUGLR[LGH

$



6





+\GURFDUERQV

$

1HJOLJLEOH







+\GURFDUERQV

$

1HJOLJLEOH







1RWH  3RZHU SODQWV OESHUYHKLFOHPLOH

OESHUFXIWRIRLOEXUQW OESHUJDOORQVRIGLHVHO

SHUJDOORQVRIRLOEXUQW

7KHWRWDOJOREDOHPLVVLRQRIPDMRUSROOXWDQWVLVJLYHQ7DEOH3DUWLFXODWH HPLVVLRQVDUHDSSUR[LPDWHO\PLOOLRQWRQVRIZKLFKPLOOLRQWRQVDUH IURPSULPDU\DQGVHFRQGDU\VRXUFHVDQGPLOOLRQWRQVDUHIURPDQWKURSRJHQLF VRXUFHV 0DMRU FRQWULEXWRUV DFFRXQWLQJ IRU  PLOOLRQ WRQV RI SDUWLFXODWHV DUH QDWXUDO VRXUFHV VXFK DV VHD VSUD\ DQG JDV SKDVH FKHPLFDO UHDFWLRQV 'LUHFW LQWURGXFWLRQRISDUWLFXODWHVIURPIXHOFRPEXVWLRQDJULFXOWXUHLQGXVWULHVDQGZDVWH LQFLQHUDWLRQDPRXQWVWRPLOOLRQWRQVSHU\HDU

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ

1RWH  3RZHU SODQWV OESHUYHKLFOHPLOH

OESHUFXIWRIRLOEXUQW OESHUJDOORQVRIGLHVHO

SHUJDOORQVRIRLOEXUQW

7KHWRWDOJOREDOHPLVVLRQRIPDMRUSROOXWDQWVLVJLYHQ7DEOH3DUWLFXODWH HPLVVLRQVDUHDSSUR[LPDWHO\PLOOLRQWRQVRIZKLFKPLOOLRQWRQVDUH IURPSULPDU\DQGVHFRQGDU\VRXUFHVDQGPLOOLRQWRQVDUHIURPDQWKURSRJHQLF VRXUFHV 0DMRU FRQWULEXWRUV DFFRXQWLQJ IRU  PLOOLRQ WRQV RI SDUWLFXODWHV DUH QDWXUDO VRXUFHV VXFK DV VHD VSUD\ DQG JDV SKDVH FKHPLFDO UHDFWLRQV 'LUHFW LQWURGXFWLRQRISDUWLFXODWHVIURPIXHOFRPEXVWLRQDJULFXOWXUHLQGXVWULHVDQGZDVWH LQFLQHUDWLRQDPRXQWVWRPLOOLRQWRQVSHU\HDU



$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



 6285&(*5283,1*

 6285&(*5283,1*

$LU SROOXWLRQ VRXUFHV FDQ DOVR EH JURXSHG DFFRUGLQJ WR WKH QXPEHU DQG VSDWLDO GLVWULEXWLRQ7KHVHLQFOXGHVLQJOHRUSRLQWVRXUFHVRUPXOWLSOHSRLQWVRXUFHVIRU ODUJHULQGXVWULHVLQGXVWULDOHVWDWHVFLWLHVVWDWHVHWF7KHVHPD\DOVRLQFOXGHOLQH VRXUFHVVXFKDVKLJKZD\VRFHDQURXWHVDLUIOLJKWURXWHVHWF $QRWKHUW\SHRIVRXUFHJURXSLQJLVE\WKHFKHPLFDOVSHFLHV7KXVDOOHPLVVLRQV EHORQJLQJWRSDUWLFXODUFKHPLFDOVSHFLHVPD\EHJURXSHGWRJHWKHU([DPSOHVLQFOXGH SDUWLFXODWHVJDVHRXVHPLVVLRQVRUJDQLFHPLVVLRQVHWF

$LU SROOXWLRQ VRXUFHV FDQ DOVR EH JURXSHG DFFRUGLQJ WR WKH QXPEHU DQG VSDWLDO GLVWULEXWLRQ7KHVHLQFOXGHVLQJOHRUSRLQWVRXUFHVRUPXOWLSOHSRLQWVRXUFHVIRU ODUJHULQGXVWULHVLQGXVWULDOHVWDWHVFLWLHVVWDWHVHWF7KHVHPD\DOVRLQFOXGHOLQH VRXUFHVVXFKDVKLJKZD\VRFHDQURXWHVDLUIOLJKWURXWHVHWF $QRWKHUW\SHRIVRXUFHJURXSLQJLVE\WKHFKHPLFDOVSHFLHV7KXVDOOHPLVVLRQV EHORQJLQJWRSDUWLFXODUFKHPLFDOVSHFLHVPD\EHJURXSHGWRJHWKHU([DPSOHVLQFOXGH SDUWLFXODWHVJDVHRXVHPLVVLRQVRUJDQLFHPLVVLRQVHWF

 (0,66,216285&(62)32//87$176

 (0,66,216285&(62)32//87$176

,WLVQRWSRVVLEOHWRHVWLPDWHWKHFRXQWU\ZLVHHPLVVLRQVDQGFRPSXWHJOREDOORDGLQJ RI SROOXWDQWV 7R JHQHUDWH VXFK GDWD RQH KDV WR VWXG\ WKH PDMRU UDZ PDWHULDO FRQVXPSWLRQV DQG SURFHVV HPLVVLRQV )RU H[DPSOH LW LV ZHOO NQRZQ WKDW FRDO FRPEXVWLRQLVDPDMRUIDFWRULQSURGXFLQJSDUWLFXODWHVVXFKDVFDUERQVLOLFD6L2  DOXPLQDLURQR[LGHVFDOFLXPR[LGHVHWF $YHUDJHHPLVVLRQIDFWRUVPD\EHHVWLPDWHGIRUWKHUPDOSRZHUVWDWLRQVGHSHQGLQJ RQWKHSRZHUJHQHUDWLRQFDSDFLW\6LQFHJRRGTXDOLW\FRDOSURGXFHVDERXW %WXOEDQGSRZHUSODQWVJHQHUDWHî%WXKULWLVSRVVLEOHWRJHQHUDWHHPLVVLRQ IDFWRUVE\PHDVXULQJWKHFRQVXPSWLRQRIFRDODQGFRPSXWLQJWKHWRWDOHPLVVLRQV 6LPLODUO\HPLVVLRQIDFWRUVPD\EHJHQHUDWHGIRURWKHUSROOXWDQWVDOVR7DEOH JLYHVDOLVWRIVXFKHPLVVLRQIDFWRUV

,WLVQRWSRVVLEOHWRHVWLPDWHWKHFRXQWU\ZLVHHPLVVLRQVDQGFRPSXWHJOREDOORDGLQJ RI SROOXWDQWV 7R JHQHUDWH VXFK GDWD RQH KDV WR VWXG\ WKH PDMRU UDZ PDWHULDO FRQVXPSWLRQV DQG SURFHVV HPLVVLRQV )RU H[DPSOH LW LV ZHOO NQRZQ WKDW FRDO FRPEXVWLRQLVDPDMRUIDFWRULQSURGXFLQJSDUWLFXODWHVVXFKDVFDUERQVLOLFD6L2  DOXPLQDLURQR[LGHVFDOFLXPR[LGHVHWF $YHUDJHHPLVVLRQIDFWRUVPD\EHHVWLPDWHGIRUWKHUPDOSRZHUVWDWLRQVGHSHQGLQJ RQWKHSRZHUJHQHUDWLRQFDSDFLW\6LQFHJRRGTXDOLW\FRDOSURGXFHVDERXW %WXOEDQGSRZHUSODQWVJHQHUDWHî%WXKULWLVSRVVLEOHWRJHQHUDWHHPLVVLRQ IDFWRUVE\PHDVXULQJWKHFRQVXPSWLRQRIFRDODQGFRPSXWLQJWKHWRWDOHPLVVLRQV 6LPLODUO\HPLVVLRQIDFWRUVPD\EHJHQHUDWHGIRURWKHUSROOXWDQWVDOVR7DEOH JLYHVDOLVWRIVXFKHPLVVLRQIDFWRUV

7DEOH  (PLVVLRQ IDFWRUV IRU FRPEXVWLRQ IXHOV >@

7DEOH  (PLVVLRQ IDFWRUV IRU FRPEXVWLRQ IXHOV >@

&RDO

1DWXUDO*DV

)XHO2LO

$XWRPRELOHV

'LHVHO(QJLQHV

3DUWLFXODWHV

±—









$OGHK\GHV

3DUDPHWHU

&RDO

1DWXUDO*DV

)XHO2LO

$XWRPRELOHV

'LHVHO(QJLQHV

3DUWLFXODWHV

±—









3DUDPHWHU

$









$OGHK\GHV

$









&DUERQPRQR[LGH

$

1HJOLJLEOH







&DUERQPRQR[LGH

$

1HJOLJLEOH







1LWURJHQR[LGHV

$









1LWURJHQR[LGHV

$









6XOSKXUGLR[LGH

$



6





6XOSKXUGLR[LGH

$



6





+\GURFDUERQV

$

1HJOLJLEOH







+\GURFDUERQV

$

1HJOLJLEOH







1RWH  3RZHU SODQWV OESHUYHKLFOHPLOH

OESHUFXIWRIRLOEXUQW OESHUJDOORQVRIGLHVHO

SHUJDOORQVRIRLOEXUQW

7KHWRWDOJOREDOHPLVVLRQRIPDMRUSROOXWDQWVLVJLYHQ7DEOH3DUWLFXODWH HPLVVLRQVDUHDSSUR[LPDWHO\PLOOLRQWRQVRIZKLFKPLOOLRQWRQVDUH IURPSULPDU\DQGVHFRQGDU\VRXUFHVDQGPLOOLRQWRQVDUHIURPDQWKURSRJHQLF VRXUFHV 0DMRU FRQWULEXWRUV DFFRXQWLQJ IRU  PLOOLRQ WRQV RI SDUWLFXODWHV DUH QDWXUDO VRXUFHV VXFK DV VHD VSUD\ DQG JDV SKDVH FKHPLFDO UHDFWLRQV 'LUHFW LQWURGXFWLRQRISDUWLFXODWHVIURPIXHOFRPEXVWLRQDJULFXOWXUHLQGXVWULHVDQGZDVWH LQFLQHUDWLRQDPRXQWVWRPLOOLRQWRQVSHU\HDU

1RWH  3RZHU SODQWV OESHUYHKLFOHPLOH

OESHUFXIWRIRLOEXUQW OESHUJDOORQVRIGLHVHO

SHUJDOORQVRIRLOEXUQW

7KHWRWDOJOREDOHPLVVLRQRIPDMRUSROOXWDQWVLVJLYHQ7DEOH3DUWLFXODWH HPLVVLRQVDUHDSSUR[LPDWHO\PLOOLRQWRQVRIZKLFKPLOOLRQWRQVDUH IURPSULPDU\DQGVHFRQGDU\VRXUFHVDQGPLOOLRQWRQVDUHIURPDQWKURSRJHQLF VRXUFHV 0DMRU FRQWULEXWRUV DFFRXQWLQJ IRU  PLOOLRQ WRQV RI SDUWLFXODWHV DUH QDWXUDO VRXUFHV VXFK DV VHD VSUD\ DQG JDV SKDVH FKHPLFDO UHDFWLRQV 'LUHFW LQWURGXFWLRQRISDUWLFXODWHVIURPIXHOFRPEXVWLRQDJULFXOWXUHLQGXVWULHVDQGZDVWH LQFLQHUDWLRQDPRXQWVWRPLOOLRQWRQVSHU\HDU



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH*OREDOHPLVVLRQRIDLUSROOXWDQWV

7DEOH*OREDOHPLVVLRQRIDLUSROOXWDQWV

3ROOXWDQW

3ROOXWDQW

(PLVVLRQVLQPLOOLRQWRQV\HDU 1DWXUDO

(PLVVLRQV

3DUWLFXODWHPDWWHU 3ULPDU\SDUWLFOH 6HD VDOW VSDU\ SURGXFWLRQ 6RLOGXVW 9ROFDQLF DQG IRUHVW ILUHV

 

6XOSKXUGLR[LGH





6XOSKDWHIURP+6 1LWUDWHIURP12 DQG12 $PPRQLXP 7HUSHQHV

  

3KRWRFKHPLFDOVIURP+&

6XEWRWDO



6XEWRWDO

(PLVVLRQV H[SUHVVHG DV 6 %LRORJLFDOGHFD\+6 6HD VSUD\ VXOSKDWHV

   D 

12 12

&DUERQPRQR[LGH 2[LGDWLRQRI&+ DQG IRUPDOGHK\GH 'HFD\ DQG V\QWKHVLV RI FKORURSK\OO 3KRWRFKHPLFDO R[LGDWLRQ RI WHUSHQHV 2FHDQV

6XOSKDWHIURP62 1LWUDWHIURP12[

&RDO 3HWUROHXP 6PHOWLQJ 6XEWRWDO

 

3DUWLFXODWHPDWWHU 3ULPDU\SDUWLFOH 6HD VDOW VSDU\ SURGXFWLRQ 6RLOGXVW 9ROFDQLF DQG IRUHVW ILUHV

   



 







6XOSKDWHIURP+6 1LWUDWHIURP12 DQG12 $PPRQLXP 7HUSHQHV

   

3KRWRFKHPLFDOVIURP+&

6XEWRWDO



6XEWRWDO

(PLVVLRQV H[SUHVVHG DV 6 %LRORJLFDOGHFD\+6 6HD VSUD\ VXOSKDWHV

   D 

12 12

6XOSKDWHIURP62 1LWUDWHIURP12[

&RDO 3HWUROHXP 6PHOWLQJ 6XEWRWDO

&DUERQPRQR[LGH 2[LGDWLRQRI&+ DQG IRUPDOGHK\GH 'HFD\ DQG V\QWKHVLV RI FKORURSK\OO 3KRWRFKHPLFDO R[LGDWLRQ RI WHUSHQHV 2FHDQV

       

(PLVVLRQV H[SUHVVHG DV 12D &RDOFRPEXVWLRQ  3HWUROHXPUHILQLQJ  *DVROLQHFRPEXVWLRQ  2WKHURLOFRPEXVWLRQ  1DWXUDOJDVFRPEXVWLRQ  2WKHUFRPEXVWLRQ  6XEWRWDO

+\GURFDUERQV

(PLVVLRQV



6XEWRWDO 1LWURJHQR[LGHV

$QWKURSRJHQLF

 



 

&+ 7HUSHQHV

6XOSKXUGLR[LGH







*DVWRSDUWLFOH FRQYHUVLRQ



(PLVVLRQV H[SUHVVHG DV 12D &RDOFRPEXVWLRQ  3HWUROHXPUHILQLQJ  *DVROLQHFRPEXVWLRQ  2WKHURLOFRPEXVWLRQ  1DWXUDOJDVFRPEXVWLRQ  2WKHUFRPEXVWLRQ 



6XEWRWDO

(PLVVLRQV

6XEWRWDO

6XEWRWDO

+\GURFDUERQV

1DWXUDO



6XEWRWDO 1LWURJHQR[LGHV

(PLVVLRQV



6XEWRWDO *DVWRSDUWLFOH FRQYHUVLRQ

$QWKURSRJHQLF

(PLVVLRQVLQPLOOLRQWRQV\HDU



 

  

6XEWRWDO



&+ 7HUSHQHV

 



D0RVWRIWKH12SURGXFHGIURPQDWXUDORUDQWKURSRJHQLFVRXUFHVLVR[LGL]HGWR12 ZLWKLQD  IHZ GD\V 7KXV WKH GLVWLQFWLRQ PDGH KHUH LV VRPHZKDW DUELWUDU\

D0RVWRIWKH12SURGXFHGIURPQDWXUDORUDQWKURSRJHQLFVRXUFHVLVR[LGL]HGWR12 ZLWKLQD 





3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

IHZ GD\V 7KXV WKH GLVWLQFWLRQ PDGH KHUH LV VRPHZKDW DUELWUDU\

3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH*OREDOHPLVVLRQRIDLUSROOXWDQWV

7DEOH*OREDOHPLVVLRQRIDLUSROOXWDQWV

3ROOXWDQW

3ROOXWDQW

(PLVVLRQVLQPLOOLRQWRQV\HDU 1DWXUDO

(PLVVLRQV

3DUWLFXODWHPDWWHU 3ULPDU\SDUWLFOH 6HD VDOW VSDU\ SURGXFWLRQ 6RLOGXVW 9ROFDQLF DQG IRUHVW ILUHV 6XEWRWDO *DVWRSDUWLFOH FRQYHUVLRQ

6XOSKXUGLR[LGH

  



6XEWRWDO



6XEWRWDO

   D 

6XOSKDWHIURP62 1LWUDWHIURP12[

&RDO 3HWUROHXP 6PHOWLQJ 6XEWRWDO

+\GURFDUERQV



 

3DUWLFXODWHPDWWHU 3ULPDU\SDUWLFOH 6HD VDOW VSDU\ SURGXFWLRQ 6RLOGXVW 9ROFDQLF DQG IRUHVW ILUHV

   

&+ 7HUSHQHV

 

 

  

3KRWRFKHPLFDOVIURP+&

6XEWRWDO



6XEWRWDO

(PLVVLRQV H[SUHVVHG DV 6 %LRORJLFDOGHFD\+6 6HD VSUD\ VXOSKDWHV

12 12





   D 



D0RVWRIWKH12SURGXFHGIURPQDWXUDORUDQWKURSRJHQLFVRXUFHVLVR[LGL]HGWR12 ZLWKLQD  IHZ GD\V 7KXV WKH GLVWLQFWLRQ PDGH KHUH LV VRPHZKDW DUELWUDU\

6XOSKDWHIURP62 1LWUDWHIURP12[

&RDO 3HWUROHXP 6PHOWLQJ 6XEWRWDO

+\GURFDUERQV

       

(PLVVLRQV H[SUHVVHG DV 12D &RDOFRPEXVWLRQ  3HWUROHXPUHILQLQJ  *DVROLQHFRPEXVWLRQ  2WKHURLOFRPEXVWLRQ  1DWXUDOJDVFRPEXVWLRQ  2WKHUFRPEXVWLRQ  6XEWRWDO

&DUERQPRQR[LGH 2[LGDWLRQRI&+ DQG IRUPDOGHK\GH 'HFD\ DQG V\QWKHVLV RI FKORURSK\OO 3KRWRFKHPLFDO R[LGDWLRQ RI WHUSHQHV 2FHDQV

(PLVVLRQV



6XOSKDWHIURP+6 1LWUDWHIURP12 DQG12 $PPRQLXP 7HUSHQHV

6XEWRWDO 1LWURJHQR[LGHV

$QWKURSRJHQLF

 



  

6XOSKXUGLR[LGH





6XEWRWDO

*DVWRSDUWLFOH FRQYHUVLRQ



(PLVVLRQV H[SUHVVHG DV 12D &RDOFRPEXVWLRQ  3HWUROHXPUHILQLQJ  *DVROLQHFRPEXVWLRQ  2WKHURLOFRPEXVWLRQ  1DWXUDOJDVFRPEXVWLRQ  2WKHUFRPEXVWLRQ  6XEWRWDO

&DUERQPRQR[LGH 2[LGDWLRQRI&+ DQG IRUPDOGHK\GH 'HFD\ DQG V\QWKHVLV RI FKORURSK\OO 3KRWRFKHPLFDO R[LGDWLRQ RI WHUSHQHV 2FHDQV

(PLVVLRQV

6XEWRWDO

3KRWRFKHPLFDOVIURP+&

12 12

1DWXUDO



  

(PLVVLRQV H[SUHVVHG DV 6 %LRORJLFDOGHFD\+6 6HD VSUD\ VXOSKDWHV

(PLVVLRQV



6XOSKDWHIURP+6 1LWUDWHIURP12 DQG12 $PPRQLXP 7HUSHQHV

6XEWRWDO 1LWURJHQR[LGHV

$QWKURSRJHQLF

(PLVVLRQVLQPLOOLRQWRQV\HDU



 

  

6XEWRWDO



&+ 7HUSHQHV

 



D0RVWRIWKH12SURGXFHGIURPQDWXUDORUDQWKURSRJHQLFVRXUFHVLVR[LGL]HGWR12 ZLWKLQD 

IHZ GD\V 7KXV WKH GLVWLQFWLRQ PDGH KHUH LV VRPHZKDW DUELWUDU\

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



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±SSPLVWKHUHDOFDXVHRIZRUU\$QQXDOLQFUHDVHRIFDUERQPRQR[LGHEXUGHQ WRWKHHQYLURQPHQWLVHVWLPDWHGWREHDURXQGPLOOLRQWRQV 6ZDPSVPDUVKHVSODQWVDQGRWKHUZDWHUERGLHVUHOHDVHDERXWPLOOLRQ WRQVRIPHWKDQHLQWRWKHDWPRVSKHUHHYHU\\HDU,QFLQHUDWLRQLQGXVWULDOFOHDQLQJ DQGFRDWLQJRSHUDWLRQVIXHOFRPEXVWLRQDQGSHWUROHXPSURFHVVLQJDUHWKHRWKHU VRXUFHVFRQWULEXWLQJDERXWPLOOLRQWRQV ,QFRPSDULVRQZLWKJOREDOHPLVVLRQV,QGLD¶VFRQWULEXWLRQWRHQYLURQPHQWDO SROOXWLRQVHHPVWREHPLQLVFXOH,QIDFWGXULQJ ±RQO\DERXWPLOOLRQ WRQV RI SDUWLFXODWHV  PLOOLRQ WRQV RI VXOSKXU GLR[LGH  PLOOLRQ WRQV RI QLWURJHQR[LGHVPLOOLRQWRQVRIFDUERQPRQR[LGHDQGPLOOLRQWRQVRI K\GURFDUERQZHUHUHOHDVHG

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±SSPLVWKHUHDOFDXVHRIZRUU\$QQXDOLQFUHDVHRIFDUERQPRQR[LGHEXUGHQ WRWKHHQYLURQPHQWLVHVWLPDWHGWREHDURXQGPLOOLRQWRQV 6ZDPSVPDUVKHVSODQWVDQGRWKHUZDWHUERGLHVUHOHDVHDERXWPLOOLRQ WRQVRIPHWKDQHLQWRWKHDWPRVSKHUHHYHU\\HDU,QFLQHUDWLRQLQGXVWULDOFOHDQLQJ DQGFRDWLQJRSHUDWLRQVIXHOFRPEXVWLRQDQGSHWUROHXPSURFHVVLQJDUHWKHRWKHU VRXUFHVFRQWULEXWLQJDERXWPLOOLRQWRQV ,QFRPSDULVRQZLWKJOREDOHPLVVLRQV,QGLD¶VFRQWULEXWLRQWRHQYLURQPHQWDO SROOXWLRQVHHPVWREHPLQLVFXOH,QIDFWGXULQJ ±RQO\DERXWPLOOLRQ WRQV RI SDUWLFXODWHV  PLOOLRQ WRQV RI VXOSKXU GLR[LGH  PLOOLRQ WRQV RI QLWURJHQR[LGHVPLOOLRQWRQVRIFDUERQPRQR[LGHDQGPLOOLRQWRQVRI K\GURFDUERQZHUHUHOHDVHG

 3238/$7,21(1(5*@

7DEOH,QVWDOOHGHOHFWULFLW\JHQHUDWLRQFDSDFLW\

7DEOH,QVWDOOHGHOHFWULFLW\JHQHUDWLRQFDSDFLW\

7KHUPDO &RDO *DV 2LO

&DSDFLW\LQ0:

7RWDO





7KHUPDO &RDO *DV 2LO

     

+\GUR

&DSDFLW\LQ0:

7RWDO





     









1XFOHDU





1XFOHDU





5HQHZDEOH





5HQHZDEOH













7RWDO

+\GUR

7RWDO

,QWKHUHSRUWRQLQWHJUDWHGHQHUJ\SROLF\RQWKHHVWLPDWHGGHPDQGRISULPDU\ FRPPHUFLDOHQHUJ\IRUWKHQH[W\HDUVEDVHGRQDQQXDOJURZWKLQWHUPVRI *'3ILYH\HDUSODQZLVHILJXUHVDUHJHQHUDWHG>@7DEOHSUHVHQWVWKHGDWD

,QWKHUHSRUWRQLQWHJUDWHGHQHUJ\SROLF\RQWKHHVWLPDWHGGHPDQGRISULPDU\ FRPPHUFLDOHQHUJ\IRUWKHQH[W\HDUVEDVHGRQDQQXDOJURZWKLQWHUPVRI *'3ILYH\HDUSODQZLVHILJXUHVDUHJHQHUDWHG>@7DEOHSUHVHQWVWKHGDWD

7DEOH7RWDOSULPDU\FRPPHUFLDOHQHUJ\GHPDQG

7DEOH7RWDOSULPDU\FRPPHUFLDOHQHUJ\GHPDQG

@

7DEOH,QVWDOOHGHOHFWULFLW\JHQHUDWLRQFDSDFLW\

7DEOH,QVWDOOHGHOHFWULFLW\JHQHUDWLRQFDSDFLW\

7KHUPDO &RDO *DV 2LO

&DSDFLW\LQ0:

7RWDO





     

+\GUR

7KHUPDO &RDO *DV 2LO

&DSDFLW\LQ0:

7RWDO





     









1XFOHDU





1XFOHDU





5HQHZDEOH





5HQHZDEOH













7RWDO

+\GUR

7RWDO

,QWKHUHSRUWRQLQWHJUDWHGHQHUJ\SROLF\RQWKHHVWLPDWHGGHPDQGRISULPDU\ FRPPHUFLDOHQHUJ\IRUWKHQH[W\HDUVEDVHGRQDQQXDOJURZWKLQWHUPVRI *'3ILYH\HDUSODQZLVHILJXUHVDUHJHQHUDWHG>@7DEOHSUHVHQWVWKHGDWD

,QWKHUHSRUWRQLQWHJUDWHGHQHUJ\SROLF\RQWKHHVWLPDWHGGHPDQGRISULPDU\ FRPPHUFLDOHQHUJ\IRUWKHQH[W\HDUVEDVHGRQDQQXDOJURZWKLQWHUPVRI *'3ILYH\HDUSODQZLVHILJXUHVDUHJHQHUDWHG>@7DEOHSUHVHQWVWKHGDWD

7DEOH7RWDOSULPDU\FRPPHUFLDOHQHUJ\GHPDQG

7DEOH7RWDOSULPDU\FRPPHUFLDOHQHUJ\GHPDQG

@

450

450 Consumption of primary energy Consumption of coal

350

350

300

300

250 200 Pr

150 100

im

e ary

ne

rgy

250 200 Pr

150 100

Coal

50 0 1980

Consumption of primary energy Consumption of coal

400

Millions of ton

Millions of ton

400

im

e ary

ne

rgy

Coal

50 1985

1990

1995

2000

0 1980

2005

1985

1990

1995

2000

2005

)LJ&RQVXPSWLRQRISULPDU\HQHUJ\DQGFRDO

)LJ&RQVXPSWLRQRISULPDU\HQHUJ\DQGFRDO

7KHSRZHUVHFWRUDORQHUHSUHVHQWVPRUHWKDQRIWKHGRPHVWLFFRQVXPSWLRQ RIFRDOZKLFKJHQHUDWHVPRUHWKDQRI,QGLD¶VHOHFWULFLW\%HWZHHQQRZDQG WKHSRZHUVHFWRULVHVWLPDWHGWRJURZ±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

7KHSRZHUVHFWRUDORQHUHSUHVHQWVPRUHWKDQRIWKHGRPHVWLFFRQVXPSWLRQ RIFRDOZKLFKJHQHUDWHVPRUHWKDQRI,QGLD¶VHOHFWULFLW\%HWZHHQQRZDQG WKHSRZHUVHFWRULVHVWLPDWHGWRJURZ±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





3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

$FFRUGLQJWRWKH&HQWUDO(OHFWULFLW\$XWKRULW\&($ LQWKHWKILYH\HDUSODQ SHULRG±0:WKHUPDOSRZHUZRXOGEHUHTXLUHGRIZKLFK 0: FDSDFLW\ ZLOO EH FRDO EDVHG 7KLV FRUUHVSRQGV WR  RI WKH WRWDO FRDO FRQVXPHG&XUUHQWO\,QGLDUDQNVWKLQWKHZRUOGIRUWKHFRQVXPSWLRQRISULPDU\ HQHUJ\ DQG UG IRU FRDO FRQVXPSWLRQ 7KH GHPDQG IRU FRDO LQ ,QGLD KDV EHHQ LQFUHDVLQJ DW  SHU \HDU YHUVXV  IRU WKH UHVW RI WKH ZRUOG 7KH DYHUDJH DQQXDOJURZWKLVH[FHHGLQJD\HDUVLQFH7KHWUHQGVLQWKHFRQVXPSWLRQ RIHQHUJ\DQGFRDOVLQFHDUHVKRZQ)LJ>@

3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

$FFRUGLQJWRWKH&HQWUDO(OHFWULFLW\$XWKRULW\&($ LQWKHWKILYH\HDUSODQ SHULRG±0:WKHUPDOSRZHUZRXOGEHUHTXLUHGRIZKLFK 0: FDSDFLW\ ZLOO EH FRDO EDVHG 7KLV FRUUHVSRQGV WR  RI WKH WRWDO FRDO FRQVXPHG&XUUHQWO\,QGLDUDQNVWKLQWKHZRUOGIRUWKHFRQVXPSWLRQRISULPDU\ HQHUJ\ DQG UG IRU FRDO FRQVXPSWLRQ 7KH GHPDQG IRU FRDO LQ ,QGLD KDV EHHQ LQFUHDVLQJ DW  SHU \HDU YHUVXV  IRU WKH UHVW RI WKH ZRUOG 7KH DYHUDJH DQQXDOJURZWKLVH[FHHGLQJD\HDUVLQFH7KHWUHQGVLQWKHFRQVXPSWLRQ RIHQHUJ\DQGFRDOVLQFHDUHVKRZQ)LJ>@

450

450 Consumption of primary energy Consumption of coal

350

350

300

300

250 200 Pr

150 100

im

ar

n ye

erg

y

250 200 Pr

150 100

Coal

50 0 1980

Consumption of primary energy Consumption of coal

400

Millions of ton

Millions of ton

400

im

ary

en

erg

y

Coal

50 1985

1990

1995

2000

2005

0 1980

1985

1990

1995

2000

2005

)LJ&RQVXPSWLRQRISULPDU\HQHUJ\DQGFRDO

)LJ&RQVXPSWLRQRISULPDU\HQHUJ\DQGFRDO

7KHSRZHUVHFWRUDORQHUHSUHVHQWVPRUHWKDQRIWKHGRPHVWLFFRQVXPSWLRQ RIFRDOZKLFKJHQHUDWHVPRUHWKDQRI,QGLD¶VHOHFWULFLW\%HWZHHQQRZDQG WKHSRZHUVHFWRULVHVWLPDWHGWRJURZ±D\HDUDGGLQJDERXW 0:LQH[WUDFDSDFLW\6WHHODQGUHODWHGLQGXVWU\FRNLQJ XVHVQHDUO\RIWKH GRPHVWLFFRDODQGFHPHQWLQGXVWU\DFFRXQWVIRURIWKHFRDOFRQVXPSWLRQ ,QGLDSRVVHVVHVDEXQGDQWFRDOUHVRXUFHVWRWKHWXQHRI*W2IWKLVQHDUO\ *WDUHSURYHQUHVRXUFHVZKLFKLVPRUHWKDQRIWKHZRUOGWRWDOSODFLQJ ,QGLDLQWKHIRXUWKUDQNEHKLQG8QLWHG6WDWHV5XVVLDDQG&KLQD$WWKHFXUUHQWUDWH RIH[WUDFWLRQWKHVHUHVHUYHVUHSUHVHQWPRUHWKDQ\HDUVRISURGXFWLRQ,QGLDQ FRDOUHVHUYHVDUHVKRZQLQ7DEOH>@ 7KH GRPHVWLF UHVHUYHV DUH FRPSRVHG HQWLUHO\ RI ELWXPLQRXV FRDO ZLWK  ODUJHDFFXPXODWLRQVLQ-KDUNKDQGEW IROORZHGE\2ULVVDELOOLRQWRQV  &KKDWWLVJDUKELOOLRQWRQV DQG:HVW%HQJDOELOOLRQWRQV 1HDUO\RI WKHWRWDOFRDOUHVRXUFHRIWKHFRXQWU\LVVKDUHGE\WKH7DOFKHUEW 5DQLJDQM EW E5LYHUEW -KDULDEW 0DQG5DLJDUKEW *RGDYDUL 9DOOH\  EW  1RUWK .DUDQSXUD  EW  5DMPDKDO  EW  6LQJUDXOL  EW  DQG .RUED  EW  7KH W\SHZLVH EUHDNXS RI *RQGZDQD FRDO

7KHSRZHUVHFWRUDORQHUHSUHVHQWVPRUHWKDQRIWKHGRPHVWLFFRQVXPSWLRQ RIFRDOZKLFKJHQHUDWHVPRUHWKDQRI,QGLD¶VHOHFWULFLW\%HWZHHQQRZDQG WKHSRZHUVHFWRULVHVWLPDWHGWRJURZ±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

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



7DEOH&RDOUHVRXUFHVLQ,QGLD 6WDWH

$LU3ROOXWLRQ$*OREDO3KHQRPHQRQ



7DEOH&RDOUHVRXUFHVLQ,QGLD &RDOUHVRXUFHVLQPLOOLRQWRQV

6WDWH

3URYHG

,QGLFDWHG

,QIHUUHG

7RWDO

$QGKUD 3UDGHVK $UXQDFKDO 3UDGHVK $VVDP %LKDU &KKDWWLVJDUK -KDUNKDQG 0DGK\D3UDGHVK 0DKDUDVKWUD 0HJKDOD\D 1DJDODQG 2ULVVD 8WWDU3UDGHVK :HVW%HQJDO

            

            

            

  

         

7RWDO









&RDOUHVRXUFHVLQPLOOLRQWRQV 3URYHG

,QGLFDWHG

,QIHUUHG

7RWDO

$QGKUD 3UDGHVK $UXQDFKDO 3UDGHVK $VVDP %LKDU &KKDWWLVJDUK -KDUNKDQG 0DGK\D3UDGHVK 0DKDUDVKWUD 0HJKDOD\D 1DJDODQG 2ULVVD 8WWDU3UDGHVK :HVW%HQJDO

            

            

            

  

         

7RWDO









UHYHDOV WKDW FRNLQJ DQG QRQFRNLQJ FRDO DUH  PW DQG  PW UHVSHFWLYHO\ZKLOHWKH7HUWLDU\FRDOZKLFKKDVKLJKVXOSKXUFRQWHQWLVPW 6LQFHWKHGRPHVWLFFRDOUHVHUYHVDUHFRPSRVHGDOPRVWHQWLUHO\RIELWXPLQRXV FRDO,QGLDQFRDOLVRIPHGLRFUHTXDQWLW\ZLWK ±DVKFRQWHQWZKLFKJLYHV ULVHWRORJLVWLFVSUREOHPV&RNLQJFRDOUHSUHVHQWVRQO\RISURYHQUHVRXUFHV DQGRQO\RIWKHZRUOGUHVRXUFHV 7KHRYHUDOOTXDOLW\RI,QGLDQFRDOSURGXFWLRQFDQEHVHHQIURPWKHIROORZLQJ 7DEOH

UHYHDOV WKDW FRNLQJ DQG QRQFRNLQJ FRDO DUH  PW DQG  PW UHVSHFWLYHO\ZKLOHWKH7HUWLDU\FRDOZKLFKKDVKLJKVXOSKXUFRQWHQWLVPW 6LQFHWKHGRPHVWLFFRDOUHVHUYHVDUHFRPSRVHGDOPRVWHQWLUHO\RIELWXPLQRXV FRDO,QGLDQFRDOLVRIPHGLRFUHTXDQWLW\ZLWK ±DVKFRQWHQWZKLFKJLYHV ULVHWRORJLVWLFVSUREOHPV&RNLQJFRDOUHSUHVHQWVRQO\RISURYHQUHVRXUFHV DQGRQO\RIWKHZRUOGUHVRXUFHV 7KHRYHUDOOTXDOLW\RI,QGLDQFRDOSURGXFWLRQFDQEHVHHQIURPWKHIROORZLQJ 7DEOH

7DEOH2YHUDOOTXDOLW\RI,QGLD¶VGRPHVWLFDQGSURGXFWLRQ>@LQPLOOLRQWRQV

7DEOH2YHUDOOTXDOLW\RI,QGLD¶VGRPHVWLFDQGSURGXFWLRQ>@LQPLOOLRQWRQV

@LQPLOOLRQWRQV

2@ 2 +22‡  o +22 22+‡ o 



>2@ 2 +22‡  o +22 22+‡ o 



>2@  12 2   o 122 212 o  



>2@  12 2   o 122 212 o  



7KHFRQFHQWUDWLRQRIR]RQHYDULHVGUDPDWLFDOO\GXULQJWKHGD\,WUHDFKHVD PD[LPXPDURXQGQRRQWLPHDQGGHFUHDVHVWRQHJOLJLEOHYDOXHVGXULQJWKHVXQVHW DQGDJDLQVWDUWVWREXLOGXSGXULQJWKHQLJKW

7KHFRQFHQWUDWLRQRIR]RQHYDULHVGUDPDWLFDOO\GXULQJWKHGD\,WUHDFKHVD PD[LPXPDURXQGQRRQWLPHDQGGHFUHDVHVWRQHJOLJLEOHYDOXHVGXULQJWKHVXQVHW DQGDJDLQVWDUWVWREXLOGXSGXULQJWKHQLJKW

 )/825,1( $1' ++@>62±@>+@±&>+@±' 



ZKHUH $ 3D.D3KD.Z



ZKHUH $ 3D.D3KD.Z

& .Z.V3V.+6 .F3F.+& DQG

& .Z.V3V.+6 .F3F.+& DQG

' .V.VSV.+V .F.F3F.+&

' .V.VSV.+V .F.F3F.+&

%\LQVHUWLQJWKHDSSURSULDWHYDOXHVIRUWKHFRQVWDQWVDQGSDUWLDOSUHVVXUHVRI JDVHV>+@FDQEHFDOFXODWHG7KHUDWHH[SUHVVLRQIRUWKHR[LGDWLRQRI>62±@LV JLYHQE\ G>62±@GW .>62±@DQG>62±@ .V.V3V.+V>+@



%\LQVHUWLQJWKHDSSURSULDWHYDOXHVIRUWKHFRQVWDQWVDQGSDUWLDOSUHVVXUHVRI JDVHV>+@FDQEHFDOFXODWHG7KHUDWHH[SUHVVLRQIRUWKHR[LGDWLRQRI>62±@LV JLYHQE\ G>62±@GW .>62±@DQG>62±@ .V.V3V.+V>+@



8VLQJWKLVHTXDWLRQWKHUDWHRILQFUHDVHRI>62±@LQWKHUDLQGURSFDQEHHDVLO\

8VLQJWKLVHTXDWLRQWKHUDWHRILQFUHDVHRI>62±@LQWKHUDLQGURSFDQEHHDVLO\

 %(+$9,285$1')$7(2)1,752*(1&203281'6$1'2=21(

 %(+$9,285$1')$7(2)1,752*(1&203281'6$1'2=21(

1LWURJHQDPPRQLDQLWURXVR[LGH12 QLWULFR[LGH12 DQGQLWURJHQGLR[LGH 12 DUHWKHVLJQLILFDQWFRQVWLWXHQWVRIQLWURJHQIDPLO\1LWUDWHVGLQLWURJHQWULR[LGH 12  GLQLWURJHQ WHWUR[LGH 12  DQG QLWURJHQ SHQWR[LGH DUH SUHVHQW RQO\ DV UHDFWLRQLQWHUPHGLDWHVDQGWKHLUSDUWLDOSUHVVXUHVLQWKHDWPRVSKHUHDUHTXLWHORZ )XUWKHUDPPRQLXP>1+@DQGQLWUDWH>12±@LRQVDUHDOVRSUHVHQWLQWKHDHURVROV $PRQJWKHJDOD[\RIWKHVHFRPSRXQGVRQO\QLWURJHQDQGQLWURXVR[LGHDUH FRPSDUDWLYHO\LQHUW+RZHYHUDWKLJKDOWLWXGHVQLWURXVR[LGHDEVRUEVXOWUDYLROHW UDGLDWLRQDWQPDQGGHFRPSRVHVLQWRQLWURJHQDQGQLWULFR[LGH

1LWURJHQDPPRQLDQLWURXVR[LGH12 QLWULFR[LGH12 DQGQLWURJHQGLR[LGH 12 DUHWKHVLJQLILFDQWFRQVWLWXHQWVRIQLWURJHQIDPLO\1LWUDWHVGLQLWURJHQWULR[LGH 12  GLQLWURJHQ WHWUR[LGH 12  DQG QLWURJHQ SHQWR[LGH DUH SUHVHQW RQO\ DV UHDFWLRQLQWHUPHGLDWHVDQGWKHLUSDUWLDOSUHVVXUHVLQWKHDWPRVSKHUHDUHTXLWHORZ )XUWKHUDPPRQLXP>1+@DQGQLWUDWH>12±@LRQVDUHDOVRSUHVHQWLQWKHDHURVROV $PRQJWKHJDOD[\RIWKHVHFRPSRXQGVRQO\QLWURJHQDQGQLWURXVR[LGHDUH FRPSDUDWLYHO\LQHUW+RZHYHUDWKLJKDOWLWXGHVQLWURXVR[LGHDEVRUEVXOWUDYLROHW UDGLDWLRQDWQPDQGGHFRPSRVHVLQWRQLWURJHQDQGQLWULFR[LGH

FDOFXODWHG

12œ12œ112

FDOFXODWHG



7KHDWPRVSKHULFFKHPLVWU\RIQLWURJHQFRPSRXQGVLVFORVHO\OLQNHGZLWKR]RQH WRIRUPSKRWRFKHPLFDOVPRJZKLFKZLOOEHGLVFXVVHGODWHU1LWURJHQR[LGHVDUH HDVLO\UHPRYHGDVFRQGHQVHGDHURVROVRIQLWULFDFLG,WLVSRVVLEOHWRSUHGLFWWKH LQYROYHGFKHPLFDOUHDFWLRQV

12œ12œ112



7KHDWPRVSKHULFFKHPLVWU\RIQLWURJHQFRPSRXQGVLVFORVHO\OLQNHGZLWKR]RQH WRIRUPSKRWRFKHPLFDOVPRJZKLFKZLOOEHGLVFXVVHGODWHU1LWURJHQR[LGHVDUH HDVLO\UHPRYHGDVFRQGHQVHGDHURVROVRIQLWULFDFLG,WLVSRVVLEOHWRSUHGLFWWKH LQYROYHGFKHPLFDOUHDFWLRQV

12+2œ+12+12



12+2œ+12+12



+12o+1212+2



+12o+1212+2



12+2o+1212



12+2o+1212



$WPRVSKHULFR]RQHDOVRSDUWLFLSDWHVLQWKHR[LGDWLRQRIQLWURJHQGLR[LGH12  $SRVVLEOHPHFKDQLVPIRUWKLVUHDFWLRQLV 122o122

122o122



4XLWHSRVVLEO\RWKHUUHDFWLRQVDVGHWDLOHGEHORZDUHDOVRLPSRUWDQW 1220o120

$WPRVSKHULFR]RQHDOVRSDUWLFLSDWHVLQWKHR[LGDWLRQRIQLWURJHQGLR[LGH12  $SRVVLEOHPHFKDQLVPIRUWKLVUHDFWLRQLV 

4XLWHSRVVLEO\RWKHUUHDFWLRQVDVGHWDLOHGEHORZDUHDOVRLPSRUWDQW 

1220o120



*DVHRXV3ROOXWDQWVLQWKH$LU 

*DVHRXV3ROOXWDQWVLQWKH$LU 

>+@>1+@ >2+±@>+62±@>+&2±@>62±@>&2±@>62±@ 

>+@>1+@ >2+±@>+62±@>+&2±@>62±@>&2±@>62±@ 

6ROYLQJIRU>+@ZHJHW

6ROYLQJIRU>+@ZHJHW

$>+@>62±@>+@±&>+@±' 

$>+@>62±@>+@±&>+@±' 



ZKHUH $ 3D.D3KD.Z

ZKHUH $ 3D.D3KD.Z

& .Z.V3V.+6 .F3F.+& DQG

& .Z.V3V.+6 .F3F.+& DQG

' .V.VSV.+V .F.F3F.+&

' .V.VSV.+V .F.F3F.+&

%\LQVHUWLQJWKHDSSURSULDWHYDOXHVIRUWKHFRQVWDQWVDQGSDUWLDOSUHVVXUHVRI JDVHV>+@FDQEHFDOFXODWHG7KHUDWHH[SUHVVLRQIRUWKHR[LGDWLRQRI>62±@LV JLYHQE\ G>62±@GW .>62±@DQG>62±@ .V.V3V.+V>+@





%\LQVHUWLQJWKHDSSURSULDWHYDOXHVIRUWKHFRQVWDQWVDQGSDUWLDOSUHVVXUHVRI JDVHV>+@FDQEHFDOFXODWHG7KHUDWHH[SUHVVLRQIRUWKHR[LGDWLRQRI>62±@LV JLYHQE\ G>62±@GW .>62±@DQG>62±@ .V.V3V.+V>+@



8VLQJWKLVHTXDWLRQWKHUDWHRILQFUHDVHRI>62±@LQWKHUDLQGURSFDQEHHDVLO\

8VLQJWKLVHTXDWLRQWKHUDWHRILQFUHDVHRI>62±@LQWKHUDLQGURSFDQEHHDVLO\

 %(+$9,285$1')$7(2)1,752*(1&203281'6$1'2=21(

 %(+$9,285$1')$7(2)1,752*(1&203281'6$1'2=21(

1LWURJHQDPPRQLDQLWURXVR[LGH12 QLWULFR[LGH12 DQGQLWURJHQGLR[LGH 12 DUHWKHVLJQLILFDQWFRQVWLWXHQWVRIQLWURJHQIDPLO\1LWUDWHVGLQLWURJHQWULR[LGH 12  GLQLWURJHQ WHWUR[LGH 12  DQG QLWURJHQ SHQWR[LGH DUH SUHVHQW RQO\ DV UHDFWLRQLQWHUPHGLDWHVDQGWKHLUSDUWLDOSUHVVXUHVLQWKHDWPRVSKHUHDUHTXLWHORZ )XUWKHUDPPRQLXP>1+@DQGQLWUDWH>12±@LRQVDUHDOVRSUHVHQWLQWKHDHURVROV $PRQJWKHJDOD[\RIWKHVHFRPSRXQGVRQO\QLWURJHQDQGQLWURXVR[LGHDUH FRPSDUDWLYHO\LQHUW+RZHYHUDWKLJKDOWLWXGHVQLWURXVR[LGHDEVRUEVXOWUDYLROHW UDGLDWLRQDWQPDQGGHFRPSRVHVLQWRQLWURJHQDQGQLWULFR[LGH

1LWURJHQDPPRQLDQLWURXVR[LGH12 QLWULFR[LGH12 DQGQLWURJHQGLR[LGH 12 DUHWKHVLJQLILFDQWFRQVWLWXHQWVRIQLWURJHQIDPLO\1LWUDWHVGLQLWURJHQWULR[LGH 12  GLQLWURJHQ WHWUR[LGH 12  DQG QLWURJHQ SHQWR[LGH DUH SUHVHQW RQO\ DV UHDFWLRQLQWHUPHGLDWHVDQGWKHLUSDUWLDOSUHVVXUHVLQWKHDWPRVSKHUHDUHTXLWHORZ )XUWKHUDPPRQLXP>1+@DQGQLWUDWH>12±@LRQVDUHDOVRSUHVHQWLQWKHDHURVROV $PRQJWKHJDOD[\RIWKHVHFRPSRXQGVRQO\QLWURJHQDQGQLWURXVR[LGHDUH FRPSDUDWLYHO\LQHUW+RZHYHUDWKLJKDOWLWXGHVQLWURXVR[LGHDEVRUEVXOWUDYLROHW UDGLDWLRQDWQPDQGGHFRPSRVHVLQWRQLWURJHQDQGQLWULFR[LGH

FDOFXODWHG

12œ12œ112



7KHDWPRVSKHULFFKHPLVWU\RIQLWURJHQFRPSRXQGVLVFORVHO\OLQNHGZLWKR]RQH WRIRUPSKRWRFKHPLFDOVPRJZKLFKZLOOEHGLVFXVVHGODWHU1LWURJHQR[LGHVDUH HDVLO\UHPRYHGDVFRQGHQVHGDHURVROVRIQLWULFDFLG,WLVSRVVLEOHWRSUHGLFWWKH LQYROYHGFKHPLFDOUHDFWLRQV

FDOFXODWHG

12œ12œ112



7KHDWPRVSKHULFFKHPLVWU\RIQLWURJHQFRPSRXQGVLVFORVHO\OLQNHGZLWKR]RQH WRIRUPSKRWRFKHPLFDOVPRJZKLFKZLOOEHGLVFXVVHGODWHU1LWURJHQR[LGHVDUH HDVLO\UHPRYHGDVFRQGHQVHGDHURVROVRIQLWULFDFLG,WLVSRVVLEOHWRSUHGLFWWKH LQYROYHGFKHPLFDOUHDFWLRQV

12+2œ+12+12



12+2œ+12+12



+12o+1212+2



+12o+1212+2



12+2o+1212



12+2o+1212



$WPRVSKHULFR]RQHDOVRSDUWLFLSDWHVLQWKHR[LGDWLRQRIQLWURJHQGLR[LGH12  $SRVVLEOHPHFKDQLVPIRUWKLVUHDFWLRQLV 122o122



4XLWHSRVVLEO\RWKHUUHDFWLRQVDVGHWDLOHGEHORZDUHDOVRLPSRUWDQW 1220o120

$WPRVSKHULFR]RQHDOVRSDUWLFLSDWHVLQWKHR[LGDWLRQRIQLWURJHQGLR[LGH12  $SRVVLEOHPHFKDQLVPIRUWKLVUHDFWLRQLV 122o122



4XLWHSRVVLEO\RWKHUUHDFWLRQVDVGHWDLOHGEHORZDUHDOVRLPSRUWDQW 

1220o120





3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV 1212o12+2o+12



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV



7KHFRQYHUVLRQRIQLWULFR[LGH12 WRQLWURJHQR[LGH12 RFFXUVZLWKLQD IHZ KRXUV LQ WKH XUEDQ DWPRVSKHUH 7KHUHIRUH WR[LF OHYHOV RI QLWULF R[LGHV DUH QHYHUDWWDLQHG$YHUDJHGGDLO\SDWWHUQRIQLWULFR[LGH12 QLWURJHQR[LGH12 DQG R]RQH 2  VKRZ WKDW WKHLU FRQFHQWUDWLRQV DUH DW PLQLPXP LQ WKH PRUQLQJ UHDFKLQJXSWRSSPDURXQGDPDQGGHFUHDVLQJWKHUHDIWHU2]RQHH[KLELWV DQ RSSRVLWH WUHQG RVWHQVLEO\ GXH WR LWV FRQVXPSWLRQ LQ WKH PRUQLQJ )LJXUH  VKRZVDW\SLFDOGDLO\SDWWHUQ>@

1212o12+2o+12

7KHFRQYHUVLRQRIQLWULFR[LGH12 WRQLWURJHQR[LGH12 RFFXUVZLWKLQD IHZ KRXUV LQ WKH XUEDQ DWPRVSKHUH 7KHUHIRUH WR[LF OHYHOV RI QLWULF R[LGHV DUH QHYHUDWWDLQHG$YHUDJHGGDLO\SDWWHUQRIQLWULFR[LGH12 QLWURJHQR[LGH12 DQG R]RQH 2  VKRZ WKDW WKHLU FRQFHQWUDWLRQV DUH DW PLQLPXP LQ WKH PRUQLQJ UHDFKLQJXSWRSSPDURXQGDPDQGGHFUHDVLQJWKHUHDIWHU2]RQHH[KLELWV DQ RSSRVLWH WUHQG RVWHQVLEO\ GXH WR LWV FRQVXPSWLRQ LQ WKH PRUQLQJ )LJXUH  VKRZVDW\SLFDOGDLO\SDWWHUQ>@

60

60 Hydrocarbons

40 Aldehydes

30

Hydrocarbons

50 Concentration (pphm)

50 Concentration (pphm)



Hydrocarbon 20

40 Aldehydes

30

Hydrocarbon 20

Ozone

Ozone

10

10 PANs

PANs

NO 4

6

8 A.M.

NO

10

12 Noon Time of day

2

4 P.M.

6

4

6

8 A.M.

10

12 Noon Time of day

2

4 P.M.

6

)LJ*URZWKDQGGHFD\SDWWHUQRI12[ DQGR]RQHLQSKRWRFKHPLFDOVPRJ

)LJ*URZWKDQGGHFD\SDWWHUQRI12[ DQGR]RQHLQSKRWRFKHPLFDOVPRJ

2]RQHDQGDWRPLFR[\JHQDUHYHU\UHDFWLYH$WRPLFR[\JHQLVEHOLHYHGWREH SUHVHQWLQWKHH[FLWHGVWDWH' ZKLFKLVSURGXFHGE\DYDULHW\RIHQHUJ\WUDQVIHU SURFHVVHV

2]RQHDQGDWRPLFR[\JHQDUHYHU\UHDFWLYH$WRPLFR[\JHQLVEHOLHYHGWREH SUHVHQWLQWKHH[FLWHGVWDWH' ZKLFKLVSURGXFHGE\DYDULHW\RIHQHUJ\WUDQVIHU SURFHVVHV

48(67,216

48(67,216

 0D[LPXPFRQFHQWUDWLRQRIFDUERQPRQR[LGHLQ/RQGRQHSLVRGH ZDVSSP&DOFXODWHWKHHTXLYDOHQWFRQFHQWUDWLRQLQWHUPVRIPJP DWž&DQGEDU  7KHPHDQFRQFHQWUDWLRQRIVXOSKXUGLR[LGHLQDPELHQWDLURI%DQJDORUHLV  PJP :KDW LV WKH HTXLYDOHQW FRQFHQWUDWLRQ LQ SSP DW ž& DQG  DWP"  $ PHJDZDWW 0:  FRDO ILUHG SRZHU SODQW LV RSHUDWLQJ DW  HIILFLHQF\7KHFRDOFRQWDLQVVXOSKXUDQGLWKDVDKHDWFRQWHQWRI



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV 1212o12+2o+12

 0D[LPXPFRQFHQWUDWLRQRIFDUERQPRQR[LGHLQ/RQGRQHSLVRGH ZDVSSP&DOFXODWHWKHHTXLYDOHQWFRQFHQWUDWLRQLQWHUPVRIPJP DWž&DQGEDU  7KHPHDQFRQFHQWUDWLRQRIVXOSKXUGLR[LGHLQDPELHQWDLURI%DQJDORUHLV  PJP :KDW LV WKH HTXLYDOHQW FRQFHQWUDWLRQ LQ SSP DW ž& DQG  DWP"  $ PHJDZDWW 0:  FRDO ILUHG SRZHU SODQW LV RSHUDWLQJ DW  HIILFLHQF\7KHFRDOFRQWDLQVVXOSKXUDQGLWKDVDKHDWFRQWHQWRI



3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV



7KHFRQYHUVLRQRIQLWULFR[LGH12 WRQLWURJHQR[LGH12 RFFXUVZLWKLQD IHZ KRXUV LQ WKH XUEDQ DWPRVSKHUH 7KHUHIRUH WR[LF OHYHOV RI QLWULF R[LGHV DUH QHYHUDWWDLQHG$YHUDJHGGDLO\SDWWHUQRIQLWULFR[LGH12 QLWURJHQR[LGH12 DQG R]RQH 2  VKRZ WKDW WKHLU FRQFHQWUDWLRQV DUH DW PLQLPXP LQ WKH PRUQLQJ UHDFKLQJXSWRSSPDURXQGDPDQGGHFUHDVLQJWKHUHDIWHU2]RQHH[KLELWV DQ RSSRVLWH WUHQG RVWHQVLEO\ GXH WR LWV FRQVXPSWLRQ LQ WKH PRUQLQJ )LJXUH  VKRZVDW\SLFDOGDLO\SDWWHUQ>@

1212o12+2o+12

7KHFRQYHUVLRQRIQLWULFR[LGH12 WRQLWURJHQR[LGH12 RFFXUVZLWKLQD IHZ KRXUV LQ WKH XUEDQ DWPRVSKHUH 7KHUHIRUH WR[LF OHYHOV RI QLWULF R[LGHV DUH QHYHUDWWDLQHG$YHUDJHGGDLO\SDWWHUQRIQLWULFR[LGH12 QLWURJHQR[LGH12 DQG R]RQH 2  VKRZ WKDW WKHLU FRQFHQWUDWLRQV DUH DW PLQLPXP LQ WKH PRUQLQJ UHDFKLQJXSWRSSPDURXQGDPDQGGHFUHDVLQJWKHUHDIWHU2]RQHH[KLELWV DQ RSSRVLWH WUHQG RVWHQVLEO\ GXH WR LWV FRQVXPSWLRQ LQ WKH PRUQLQJ )LJXUH  VKRZVDW\SLFDOGDLO\SDWWHUQ>@

60

60 Hydrocarbons

40 Aldehydes

30

Hydrocarbons

50 Concentration (pphm)

50 Concentration (pphm)



Hydrocarbon 20

40 Aldehydes

30

Hydrocarbon 20

Ozone

Ozone

10

10 PANs

PANs

NO 4

6

8 A.M.

10

12 Noon Time of day

NO 2

4 P.M.

6

4

6

8 A.M.

10

12 Noon Time of day

2

4 P.M.

6

)LJ*URZWKDQGGHFD\SDWWHUQRI12[ DQGR]RQHLQSKRWRFKHPLFDOVPRJ

)LJ*URZWKDQGGHFD\SDWWHUQRI12[ DQGR]RQHLQSKRWRFKHPLFDOVPRJ

2]RQHDQGDWRPLFR[\JHQDUHYHU\UHDFWLYH$WRPLFR[\JHQLVEHOLHYHGWREH SUHVHQWLQWKHH[FLWHGVWDWH' ZKLFKLVSURGXFHGE\DYDULHW\RIHQHUJ\WUDQVIHU SURFHVVHV

2]RQHDQGDWRPLFR[\JHQDUHYHU\UHDFWLYH$WRPLFR[\JHQLVEHOLHYHGWREH SUHVHQWLQWKHH[FLWHGVWDWH' ZKLFKLVSURGXFHGE\DYDULHW\RIHQHUJ\WUDQVIHU SURFHVVHV

48(67,216

48(67,216

 0D[LPXPFRQFHQWUDWLRQRIFDUERQPRQR[LGHLQ/RQGRQHSLVRGH ZDVSSP&DOFXODWHWKHHTXLYDOHQWFRQFHQWUDWLRQLQWHUPVRIPJP DWž&DQGEDU  7KHPHDQFRQFHQWUDWLRQRIVXOSKXUGLR[LGHLQDPELHQWDLURI%DQJDORUHLV  PJP :KDW LV WKH HTXLYDOHQW FRQFHQWUDWLRQ LQ SSP DW ž& DQG  DWP"  $ PHJDZDWW 0:  FRDO ILUHG SRZHU SODQW LV RSHUDWLQJ DW  HIILFLHQF\7KHFRDOFRQWDLQVVXOSKXUDQGLWKDVDKHDWFRQWHQWRI

 0D[LPXPFRQFHQWUDWLRQRIFDUERQPRQR[LGHLQ/RQGRQHSLVRGH ZDVSSP&DOFXODWHWKHHTXLYDOHQWFRQFHQWUDWLRQLQWHUPVRIPJP DWž&DQGEDU  7KHPHDQFRQFHQWUDWLRQRIVXOSKXUGLR[LGHLQDPELHQWDLURI%DQJDORUHLV  PJP :KDW LV WKH HTXLYDOHQW FRQFHQWUDWLRQ LQ SSP DW ž& DQG  DWP"  $ PHJDZDWW 0:  FRDO ILUHG SRZHU SODQW LV RSHUDWLQJ DW  HIILFLHQF\7KHFRDOFRQWDLQVVXOSKXUDQGLWKDVDKHDWFRQWHQWRI

  

   

*DVHRXV3ROOXWDQWVLQWKH$LU 

*DVHRXV3ROOXWDQWVLQWKH$LU 

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

N:NJ:KDWLVWKHHPLVVLRQUDWHRI62LIFRDOFRQVXPSWLRQLV NJGD\" $0:SRZHUSODQWEXUQLQJN:NJRIFRDOFRQWDLQVVXOSKXU :KDWZRXOGEHWKHPD[LPXP62HPLVVLRQUDWHNJGD\ " ,QGLFDWHWKHVRXUFHVRIWKHIROORZLQJWUDFHHOHPHQWVLQWKHDWPRVSKHUH PHUFXU\FDGPLXPDUVHQLFDQGFKURPLXP $0:SRZHUSODQWRIWKHUPDOHIILFLHQF\LVSURSRVHG7KHSODQW EXUQVVXOSKXUFRDOZLWKDKHDWLQJYDOXHRINFDONJDQGHPLWV PPLQRIIOXHJDV:KDWLVWKHFRQFHQWUDWLRQRI62LQWKHIOXH JDVLQSSP"'HQVLW\RI62LVJP  ([SODLQKRZVXOSKXUGLR[LGHLVUHPRYHGIURPWKHDWPRVSKHUH :KDWDUHWKHPHFKDQLVPVRIFRDJXODWLRQDJJORPHUDWLRQDQGVHGLPHQWDWLRQ" *LYHH[DPSOHVIRUHDFK :KDW DUH WKH YDULRXV VLQNV RSHUDWLYH IRU   VXOSKXU GLR[LGH   FDUERQ PRQR[LGH IOXRULGHVDQGDPPRQLD" 7KHIDWHRI12[DQGR[\JHQDUHFORVHO\OLQNHGWRHDFKRWKHU6XEVWDQWLDWH ZLWKDSSURSULDWHHTXDWLRQV

5()(5(1&(6

  

   

5()(5(1&(6

 6RXUFH*OREDO&DUERQ&\FOH KWWSHGLDF(VG2UQO*RY  -$ .HUU DQG -* &DOYHUW ³3KRWRFKHPLFDO 6PRJ %XLOG XS LQ /RV $QJHOHV &DOLIRUQLD´-XO\.-'HPHUMLDQ$GY(QYL6FL7HFKQRO  3. @

7KH FRVWHIIHFWLYHQHVV RI D F\FORQH LV QRW RQO\ GHWHUPLQHG E\ WKH FROOHFWLRQ HIILFLHQF\EXWDOVRE\WKHSUHVVXUHGURSDFURVVWKHHTXLSPHQW$VWKHGLDPHWHURI WKH F\FORQH LV UHGXFHG WKH SDUWLFOH FROOHFWLRQ HIILFLHQF\ LQFUHDVHV +RZHYHU LQFUHDVHGHIILFLHQF\FDXVHVPRUHSUHVVXUHGURSZKLFKLQWXUQUHTXLUHVPRUHSRZHU WRPRYHWKHJDVWKURXJKWKHFROOHFWRU$FPZDWHUSUHVVXUHGURSLVDFFHSWDEOH GXULQJWKHRSHUDWLRQRIDF\FORQH7KHSUHVVXUHGURS'3PD\EHHVWLPDWHGDFFRUGLQJ WR6KHSKHUGDQG/DSSOH¶VIRUPXODH>@

'3

. UJ 9L  +: 'H

'3



. UJ 9L  +: 'H



ZKHUH.LVDFRQVWDQWUDQJLQJIURPWRZLWKDQDYHUDJHRI'3LVWKH SUHVVXUHGURS+:DQG'HDUHWKHF\FORQHGLPHQVLRQV9LLVWKHLQOHWJDVYHORFLW\ DQGUJLVWKHGHQVLW\RIWKHJDV (TXDWLRQVKRZVWKDWWKHSUHVVXUHGURSLVSURSRUWLRQDOWRWKHVTXDUHRI WKHLQOHWJDVYHORFLW\+LJKHUWKHYHORFLW\PRUHLVWKHSUHVVXUHGURS+LJKHUYHORFLWLHV DOVRFDXVHUHHQWUDLQPHQWRIWKHSDUWLFOHVDQGDHURVROV

ZKHUH.LVDFRQVWDQWUDQJLQJIURPWRZLWKDQDYHUDJHRI'3LVWKH SUHVVXUHGURS+:DQG'HDUHWKHF\FORQHGLPHQVLRQV9LLVWKHLQOHWJDVYHORFLW\ DQGUJLVWKHGHQVLW\RIWKHJDV (TXDWLRQVKRZVWKDWWKHSUHVVXUHGURSLVSURSRUWLRQDOWRWKHVTXDUHRI WKHLQOHWJDVYHORFLW\+LJKHUWKHYHORFLW\PRUHLVWKHSUHVVXUHGURS+LJKHUYHORFLWLHV DOVRFDXVHUHHQWUDLQPHQWRIWKHSDUWLFOHVDQGDHURVROV

([DPSOH $FRQYHQWLRQDOF\FORQHRIPGLDPHWHUKDYLQJDQHQWUDQFHZLGWKRIPDQG HQWUDQFH KHLJKW RI  P KDQGOHV DERXW  PV RI SDUWLFOH ODGHQ JDV KDYLQJ D VSHFLILFJUDYLW\RINJP'HWHUPLQHWKHFXWVL]HDQGHIILFLHQF\DVDIXQFWLRQ RIWKHSDUWLFOHGLDPHWHULIWKHHIILFLHQF\QXPEHURIWXUQVRI

([DPSOH $FRQYHQWLRQDOF\FORQHRIPGLDPHWHUKDYLQJDQHQWUDQFHZLGWKRIPDQG HQWUDQFH KHLJKW RI  P KDQGOHV DERXW  PV RI SDUWLFOH ODGHQ JDV KDYLQJ D VSHFLILFJUDYLW\RINJP'HWHUPLQHWKHFXWVL]HDQGHIILFLHQF\DVDIXQFWLRQ RIWKHSDUWLFOHGLDPHWHULIWKHHIILFLHQF\QXPEHURIWXUQVRI

6ROXWLRQ :HKDYH US  NJPE PD —J î±NJPVDQGLQOHW JDVYHORFLW\JLYHQE\

6ROXWLRQ :HKDYH US  NJPE PD —J î±NJPVDQGLQOHW JDVYHORFLW\JLYHQE\

4 DE

9L

 P  V  

4 DE

9L

 P  V

 P  V

7KHFXWVL]HGSFLVJLYHQE\WKHHTXDWLRQ G SF

7KHFXWVL]HGSFLVJLYHQE\WKHHTXDWLRQ

 PJ E

G SF

S1 H 9L US  UJ

3DUWLFXODWH&RQWURO7HFKQRORJLHV



GS

 PJ E S1 H 9L US  UJ



  u  ±

&G

 P  V  

3DUWLFXODWH&RQWURO7HFKQRORJLHV



PVHF

GS



  u  ±

&G

PVHF

3UHVVXUHGURS

3UHVVXUHGURS

7KH FRVWHIIHFWLYHQHVV RI D F\FORQH LV QRW RQO\ GHWHUPLQHG E\ WKH FROOHFWLRQ HIILFLHQF\EXWDOVRE\WKHSUHVVXUHGURSDFURVVWKHHTXLSPHQW$VWKHGLDPHWHURI WKH F\FORQH LV UHGXFHG WKH SDUWLFOH FROOHFWLRQ HIILFLHQF\ LQFUHDVHV +RZHYHU LQFUHDVHGHIILFLHQF\FDXVHVPRUHSUHVVXUHGURSZKLFKLQWXUQUHTXLUHVPRUHSRZHU WRPRYHWKHJDVWKURXJKWKHFROOHFWRU$FPZDWHUSUHVVXUHGURSLVDFFHSWDEOH GXULQJWKHRSHUDWLRQRIDF\FORQH7KHSUHVVXUHGURS'3PD\EHHVWLPDWHGDFFRUGLQJ WR6KHSKHUGDQG/DSSOH¶VIRUPXODH>@

7KH FRVWHIIHFWLYHQHVV RI D F\FORQH LV QRW RQO\ GHWHUPLQHG E\ WKH FROOHFWLRQ HIILFLHQF\EXWDOVRE\WKHSUHVVXUHGURSDFURVVWKHHTXLSPHQW$VWKHGLDPHWHURI WKH F\FORQH LV UHGXFHG WKH SDUWLFOH FROOHFWLRQ HIILFLHQF\ LQFUHDVHV +RZHYHU LQFUHDVHGHIILFLHQF\FDXVHVPRUHSUHVVXUHGURSZKLFKLQWXUQUHTXLUHVPRUHSRZHU WRPRYHWKHJDVWKURXJKWKHFROOHFWRU$FPZDWHUSUHVVXUHGURSLVDFFHSWDEOH GXULQJWKHRSHUDWLRQRIDF\FORQH7KHSUHVVXUHGURS'3PD\EHHVWLPDWHGDFFRUGLQJ WR6KHSKHUGDQG/DSSOH¶VIRUPXODH>@

'3

. UJ 9L  +: 'H

'3



. UJ 9L  +: 'H



ZKHUH.LVDFRQVWDQWUDQJLQJIURPWRZLWKDQDYHUDJHRI'3LVWKH SUHVVXUHGURS+:DQG'HDUHWKHF\FORQHGLPHQVLRQV9LLVWKHLQOHWJDVYHORFLW\ DQGUJLVWKHGHQVLW\RIWKHJDV (TXDWLRQVKRZVWKDWWKHSUHVVXUHGURSLVSURSRUWLRQDOWRWKHVTXDUHRI WKHLQOHWJDVYHORFLW\+LJKHUWKHYHORFLW\PRUHLVWKHSUHVVXUHGURS+LJKHUYHORFLWLHV DOVRFDXVHUHHQWUDLQPHQWRIWKHSDUWLFOHVDQGDHURVROV

ZKHUH.LVDFRQVWDQWUDQJLQJIURPWRZLWKDQDYHUDJHRI'3LVWKH SUHVVXUHGURS+:DQG'HDUHWKHF\FORQHGLPHQVLRQV9LLVWKHLQOHWJDVYHORFLW\ DQGUJLVWKHGHQVLW\RIWKHJDV (TXDWLRQVKRZVWKDWWKHSUHVVXUHGURSLVSURSRUWLRQDOWRWKHVTXDUHRI WKHLQOHWJDVYHORFLW\+LJKHUWKHYHORFLW\PRUHLVWKHSUHVVXUHGURS+LJKHUYHORFLWLHV DOVRFDXVHUHHQWUDLQPHQWRIWKHSDUWLFOHVDQGDHURVROV

([DPSOH $FRQYHQWLRQDOF\FORQHRIPGLDPHWHUKDYLQJDQHQWUDQFHZLGWKRIPDQG HQWUDQFH KHLJKW RI  P KDQGOHV DERXW  PV RI SDUWLFOH ODGHQ JDV KDYLQJ D VSHFLILFJUDYLW\RINJP'HWHUPLQHWKHFXWVL]HDQGHIILFLHQF\DVDIXQFWLRQ RIWKHSDUWLFOHGLDPHWHULIWKHHIILFLHQF\QXPEHURIWXUQVRI

([DPSOH $FRQYHQWLRQDOF\FORQHRIPGLDPHWHUKDYLQJDQHQWUDQFHZLGWKRIPDQG HQWUDQFH KHLJKW RI  P KDQGOHV DERXW  PV RI SDUWLFOH ODGHQ JDV KDYLQJ D VSHFLILFJUDYLW\RINJP'HWHUPLQHWKHFXWVL]HDQGHIILFLHQF\DVDIXQFWLRQ RIWKHSDUWLFOHGLDPHWHULIWKHHIILFLHQF\QXPEHURIWXUQVRI

6ROXWLRQ :HKDYH US  NJPE PD —J î±NJPVDQGLQOHW JDVYHORFLW\JLYHQE\

6ROXWLRQ :HKDYH US  NJPE PD —J î±NJPVDQGLQOHW JDVYHORFLW\JLYHQE\

9L

4 DE

 P  V  

9L

4 DE

 P  V 7KHFXWVL]HGSFLVJLYHQE\WKHHTXDWLRQ G SF

 PJ E S1 H 9L US  UJ

 P  V    P  V

7KHFXWVL]HGSFLVJLYHQE\WKHHTXDWLRQ G SF

 PJ E S1 H 9L US  UJ

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

G SF

 u  u  u  S  

 u  P

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

G SF

 u  u  u  S  

 u  P

 ,QGXVWULDO &\FORQHV

 ,QGXVWULDO &\FORQHV

,QGXVWULDOF\FORQHVDUHXVXDOO\GHVLJQHGIRUFRQYHQWLRQDORSHUDWLRQ7KH\FDQDOVR EHDGRSWHGIRUµKLJKHIILFLHQF\¶RSHUDWLRQ:KLOHWKHUHLVQRH[DFWGHPDUFDWLRQ EHWZHHQWKHWZRF\FORQHVKDYLQJERG\GLDPHWHUV!PHWUHVDUHFRQVLGHUHG DVFRQYHQWLRQDODQGWKRVHZLWKPHWUHVDUHWUHDWHGDVKLJKHIILFLHQF\F\FORQHV $VPDOOGLDPHWHUZLWKORQJWDSHUHGFRQHUHVXOWVLQEHWWHUVHSDUDWLRQ6RDOVRWKH LQFUHDVLQJSDUWLFOHVL]HGHQVLW\JDVLQOHWYHORFLW\LQOHWORDGLQJERG\OHQJWKRIWKH F\FORQHDQGWKHUDWLRRIERG\GLDPHWHUWRJDVRXWOHWGLDPHWHU &RQYHQWLRQDO F\FORQHV DUH XVXDOO\ GHVLJQHG WR DFFHSW WKH JDV WDQJHQWLDOO\ 7KLVOHDGVWRWKHIRUPDWLRQRIµHGGLHV¶QHDUWKHWRSRIWKHXQLWZKHUHWKHH[KDXVW LVORFDWHG3DUWLFXODWHVFDXJKWLQHGGLHVPL[ZLWKRXWJRLQJFOHDQJDV7KHUHIRUH HIILFLHQF\RIVHSDUDWLRQGHFUHDVHV7KLVSUREOHPFDQEHPLQLPL]HGE\ORFDWLQJWKH GLVFKDUJHWXEHDWVOLJKWO\ORZHUKHLJKWVEHORZWKH]RQHRIPD[LPXPWXUEXOHQFH WKHUHE\ DYRLGLQJ HGG\ UHJLRQV ,QWURGXFWLRQ RI FHQWUDO WXEH SURMHFWLQJ LQWR WKH F\FORQHERG\EHORZWKHWXUEXOHQWUHJLRQLVKHOSIXO6XFKDWXEHLVFDOOHGµ9RUWH[ ILQGHU¶$FRQYHQWLRQDOF\FORQHLVVKRZQLQ)LJ

,QGXVWULDOF\FORQHVDUHXVXDOO\GHVLJQHGIRUFRQYHQWLRQDORSHUDWLRQ7KH\FDQDOVR EHDGRSWHGIRUµKLJKHIILFLHQF\¶RSHUDWLRQ:KLOHWKHUHLVQRH[DFWGHPDUFDWLRQ EHWZHHQWKHWZRF\FORQHVKDYLQJERG\GLDPHWHUV!PHWUHVDUHFRQVLGHUHG DVFRQYHQWLRQDODQGWKRVHZLWKPHWUHVDUHWUHDWHGDVKLJKHIILFLHQF\F\FORQHV $VPDOOGLDPHWHUZLWKORQJWDSHUHGFRQHUHVXOWVLQEHWWHUVHSDUDWLRQ6RDOVRWKH LQFUHDVLQJSDUWLFOHVL]HGHQVLW\JDVLQOHWYHORFLW\LQOHWORDGLQJERG\OHQJWKRIWKH F\FORQHDQGWKHUDWLRRIERG\GLDPHWHUWRJDVRXWOHWGLDPHWHU &RQYHQWLRQDO F\FORQHV DUH XVXDOO\ GHVLJQHG WR DFFHSW WKH JDV WDQJHQWLDOO\ 7KLVOHDGVWRWKHIRUPDWLRQRIµHGGLHV¶QHDUWKHWRSRIWKHXQLWZKHUHWKHH[KDXVW LVORFDWHG3DUWLFXODWHVFDXJKWLQHGGLHVPL[ZLWKRXWJRLQJFOHDQJDV7KHUHIRUH HIILFLHQF\RIVHSDUDWLRQGHFUHDVHV7KLVSUREOHPFDQEHPLQLPL]HGE\ORFDWLQJWKH GLVFKDUJHWXEHDWVOLJKWO\ORZHUKHLJKWVEHORZWKH]RQHRIPD[LPXPWXUEXOHQFH WKHUHE\ DYRLGLQJ HGG\ UHJLRQV ,QWURGXFWLRQ RI FHQWUDO WXEH SURMHFWLQJ LQWR WKH F\FORQHERG\EHORZWKHWXUEXOHQWUHJLRQLVKHOSIXO6XFKDWXEHLVFDOOHGµ9RUWH[ ILQGHU¶$FRQYHQWLRQDOF\FORQHLVVKRZQLQ)LJ

180° involute

180° involute

Cleaned gas outlet Rectangular involute inlet nozzle

Cleaned gas outlet Rectangular involute inlet nozzle

Vortex finder

Vortex finder

Cylinder

Cylinder

Cone

Cone

Vortex arrester

Vortex arrester

Hopper

Hopper

Dust outlet flange

Dust outlet flange

)LJ,QYROXWHF\FORQH

)LJ,QYROXWHF\FORQH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

G SF

 u  u  u  S  

 u  P

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

G SF

 u  u  u  S  

 u  P

 ,QGXVWULDO &\FORQHV

 ,QGXVWULDO &\FORQHV

,QGXVWULDOF\FORQHVDUHXVXDOO\GHVLJQHGIRUFRQYHQWLRQDORSHUDWLRQ7KH\FDQDOVR EHDGRSWHGIRUµKLJKHIILFLHQF\¶RSHUDWLRQ:KLOHWKHUHLVQRH[DFWGHPDUFDWLRQ EHWZHHQWKHWZRF\FORQHVKDYLQJERG\GLDPHWHUV!PHWUHVDUHFRQVLGHUHG DVFRQYHQWLRQDODQGWKRVHZLWKPHWUHVDUHWUHDWHGDVKLJKHIILFLHQF\F\FORQHV $VPDOOGLDPHWHUZLWKORQJWDSHUHGFRQHUHVXOWVLQEHWWHUVHSDUDWLRQ6RDOVRWKH LQFUHDVLQJSDUWLFOHVL]HGHQVLW\JDVLQOHWYHORFLW\LQOHWORDGLQJERG\OHQJWKRIWKH F\FORQHDQGWKHUDWLRRIERG\GLDPHWHUWRJDVRXWOHWGLDPHWHU &RQYHQWLRQDO F\FORQHV DUH XVXDOO\ GHVLJQHG WR DFFHSW WKH JDV WDQJHQWLDOO\ 7KLVOHDGVWRWKHIRUPDWLRQRIµHGGLHV¶QHDUWKHWRSRIWKHXQLWZKHUHWKHH[KDXVW LVORFDWHG3DUWLFXODWHVFDXJKWLQHGGLHVPL[ZLWKRXWJRLQJFOHDQJDV7KHUHIRUH HIILFLHQF\RIVHSDUDWLRQGHFUHDVHV7KLVSUREOHPFDQEHPLQLPL]HGE\ORFDWLQJWKH GLVFKDUJHWXEHDWVOLJKWO\ORZHUKHLJKWVEHORZWKH]RQHRIPD[LPXPWXUEXOHQFH WKHUHE\ DYRLGLQJ HGG\ UHJLRQV ,QWURGXFWLRQ RI FHQWUDO WXEH SURMHFWLQJ LQWR WKH F\FORQHERG\EHORZWKHWXUEXOHQWUHJLRQLVKHOSIXO6XFKDWXEHLVFDOOHGµ9RUWH[ ILQGHU¶$FRQYHQWLRQDOF\FORQHLVVKRZQLQ)LJ

,QGXVWULDOF\FORQHVDUHXVXDOO\GHVLJQHGIRUFRQYHQWLRQDORSHUDWLRQ7KH\FDQDOVR EHDGRSWHGIRUµKLJKHIILFLHQF\¶RSHUDWLRQ:KLOHWKHUHLVQRH[DFWGHPDUFDWLRQ EHWZHHQWKHWZRF\FORQHVKDYLQJERG\GLDPHWHUV!PHWUHVDUHFRQVLGHUHG DVFRQYHQWLRQDODQGWKRVHZLWKPHWUHVDUHWUHDWHGDVKLJKHIILFLHQF\F\FORQHV $VPDOOGLDPHWHUZLWKORQJWDSHUHGFRQHUHVXOWVLQEHWWHUVHSDUDWLRQ6RDOVRWKH LQFUHDVLQJSDUWLFOHVL]HGHQVLW\JDVLQOHWYHORFLW\LQOHWORDGLQJERG\OHQJWKRIWKH F\FORQHDQGWKHUDWLRRIERG\GLDPHWHUWRJDVRXWOHWGLDPHWHU &RQYHQWLRQDO F\FORQHV DUH XVXDOO\ GHVLJQHG WR DFFHSW WKH JDV WDQJHQWLDOO\ 7KLVOHDGVWRWKHIRUPDWLRQRIµHGGLHV¶QHDUWKHWRSRIWKHXQLWZKHUHWKHH[KDXVW LVORFDWHG3DUWLFXODWHVFDXJKWLQHGGLHVPL[ZLWKRXWJRLQJFOHDQJDV7KHUHIRUH HIILFLHQF\RIVHSDUDWLRQGHFUHDVHV7KLVSUREOHPFDQEHPLQLPL]HGE\ORFDWLQJWKH GLVFKDUJHWXEHDWVOLJKWO\ORZHUKHLJKWVEHORZWKH]RQHRIPD[LPXPWXUEXOHQFH WKHUHE\ DYRLGLQJ HGG\ UHJLRQV ,QWURGXFWLRQ RI FHQWUDO WXEH SURMHFWLQJ LQWR WKH F\FORQHERG\EHORZWKHWXUEXOHQWUHJLRQLVKHOSIXO6XFKDWXEHLVFDOOHGµ9RUWH[ ILQGHU¶$FRQYHQWLRQDOF\FORQHLVVKRZQLQ)LJ

180° involute

180° involute

Cleaned gas outlet Rectangular involute inlet nozzle

Vortex finder

Cleaned gas outlet Rectangular involute inlet nozzle

Vortex finder

Cylinder

Cylinder

Cone

Cone

Vortex arrester

Vortex arrester

Hopper Dust outlet flange

)LJ,QYROXWHF\FORQH

Hopper Dust outlet flange

)LJ,QYROXWHF\FORQH

3DUWLFXODWH&RQWURO7HFKQRORJLHV



$QRWKHUVLPSOHZD\WRHOLPLQDWHWKHHGG\IRUPDWLRQLVWRLQWURGXFHWKHJDV D[LDOO\WREULQJLWDURXQGWKHRXWHUHGJHRIWKHF\FORQHZLWKDVSLUDORIž7KLV DUUDQJHPHQW LV VKRZQ LQ )LJ  DQG NQRZQ DV µLQYROXWH¶ GHVLJQ 7KLV GHVLJQ SHUPLWVEHWWHUSDUWLFOHSURMHFWLRQWRZDUGVWKHZDOOVRIWKHF\FORQH7KXVORVVHVRI ILQH SDUWLFOH DUH DOVR PLQLPL]HG 3UHVVXUH GURS LV DOVR PXFK OHVV LQ µLQYROXWH¶ GHVLJQV 6LQFHWKHUHDUHQRPRYLQJSDUWVLQF\FORQHVJUDGXDOHURVLRQRIWKHF\OLQGHU ZDOOV RFFXUV RYHU D SHULRG RI WLPH (URVLRQ DQG FRUURVLRQ RI WKH PDWHULDO RI FRQVWUXFWLRQOHDGVWRWKHJUDGXDOORZHULQJRIHIILFLHQF\%XLOGXSRIGXVWFDNHDOVR FDXVHV ORVV RI HIILFLHQF\ OHDGLQJ WR IUHTXHQW PDLQWHQDQFH SUREOHPV *HQHUDOO\ SDUWLFOHVEHORZ±—GLDPHWHUVDUHQRWHIILFLHQWO\FROOHFWHGLQWKHF\FORQHV $QRWKHUWHFKQLTXHWRLPSURYHWKHHIILFLHQF\RIF\FORQHVLVWRHPSOR\DQXPEHU RI VPDOOHU F\FORQHV LQ D VLQJOH XQLW 7KLV EDWWHU\ RI VPDOOHU F\FORQHV LV FDOOHG µPXOWLSOHF\FORQHV¶RUµPXOWLFORQHV¶RUµWXEXODUF\FORQHV¶0XOWLSOHF\FORQHVFRQVLVW RIDQXPEHURIFPGLDPHWHUF\FORQHVDUUDQJHGLQURZVRISDUDOOHOWXEHVZLWKD VLQJOHLQOHWDQGRXWOHWGXFWDQGPXOWLSOHGXVWFROOHFWLRQV\VWHPV6HH)LJ  6XFKDQDUUDQJHPHQWKHOSVLQPDLQWDLQLQJDFRQVWDQWSUHVVXUHGURSLQHDFKF\FORQH +RZHYHULQPXOWLSOHF\FORQHVWKHGXVWFROOHFWRUTXLFNO\JHWVRYHUORDGHGWKHUHE\ QHFHVVLWDWLQJIUHTXHQWUHPRYDO,IWKHFROOHFWLRQEDJVDUHQRWUHSODFHGDWWKHVSHFLILHG SHULRG RI RSHUDWLRQ SOXJJLQJ RFFXUV DQG SDUWLFOH VHSDUDWLRQ HIILFLHQF\ GURSV GUDVWLFDOO\ Outlet

3DUWLFXODWH&RQWURO7HFKQRORJLHV

$QRWKHUVLPSOHZD\WRHOLPLQDWHWKHHGG\IRUPDWLRQLVWRLQWURGXFHWKHJDV D[LDOO\WREULQJLWDURXQGWKHRXWHUHGJHRIWKHF\FORQHZLWKDVSLUDORIž7KLV DUUDQJHPHQW LV VKRZQ LQ )LJ  DQG NQRZQ DV µLQYROXWH¶ GHVLJQ 7KLV GHVLJQ SHUPLWVEHWWHUSDUWLFOHSURMHFWLRQWRZDUGVWKHZDOOVRIWKHF\FORQH7KXVORVVHVRI ILQH SDUWLFOH DUH DOVR PLQLPL]HG 3UHVVXUH GURS LV DOVR PXFK OHVV LQ µLQYROXWH¶ GHVLJQV 6LQFHWKHUHDUHQRPRYLQJSDUWVLQF\FORQHVJUDGXDOHURVLRQRIWKHF\OLQGHU ZDOOV RFFXUV RYHU D SHULRG RI WLPH (URVLRQ DQG FRUURVLRQ RI WKH PDWHULDO RI FRQVWUXFWLRQOHDGVWRWKHJUDGXDOORZHULQJRIHIILFLHQF\%XLOGXSRIGXVWFDNHDOVR FDXVHV ORVV RI HIILFLHQF\ OHDGLQJ WR IUHTXHQW PDLQWHQDQFH SUREOHPV *HQHUDOO\ SDUWLFOHVEHORZ±—GLDPHWHUVDUHQRWHIILFLHQWO\FROOHFWHGLQWKHF\FORQHV $QRWKHUWHFKQLTXHWRLPSURYHWKHHIILFLHQF\RIF\FORQHVLVWRHPSOR\DQXPEHU RI VPDOOHU F\FORQHV LQ D VLQJOH XQLW 7KLV EDWWHU\ RI VPDOOHU F\FORQHV LV FDOOHG µPXOWLSOHF\FORQHV¶RUµPXOWLFORQHV¶RUµWXEXODUF\FORQHV¶0XOWLSOHF\FORQHVFRQVLVW RIDQXPEHURIFPGLDPHWHUF\FORQHVDUUDQJHGLQURZVRISDUDOOHOWXEHVZLWKD VLQJOHLQOHWDQGRXWOHWGXFWDQGPXOWLSOHGXVWFROOHFWLRQV\VWHPV6HH)LJ  6XFKDQDUUDQJHPHQWKHOSVLQPDLQWDLQLQJDFRQVWDQWSUHVVXUHGURSLQHDFKF\FORQH +RZHYHULQPXOWLSOHF\FORQHVWKHGXVWFROOHFWRUTXLFNO\JHWVRYHUORDGHGWKHUHE\ QHFHVVLWDWLQJIUHTXHQWUHPRYDO,IWKHFROOHFWLRQEDJVDUHQRWUHSODFHGDWWKHVSHFLILHG SHULRG RI RSHUDWLRQ SOXJJLQJ RFFXUV DQG SDUWLFOH VHSDUDWLRQ HIILFLHQF\ GURSV GUDVWLFDOO\ Outlet

Inlet



Cyclone tubes

Inlet

Cyclone tubes

Hopper

Hopper

)LJ0XOWLSOHF\FORQH

)LJ0XOWLSOHF\FORQH

4XLWHRIWHQWZRF\FORQHVHSDUDWRUVDUHXVHGLQVHULHV7KHILUVWRQHLVDODUJH GLDPHWHUF\FORQHXVHIXOIRUFRDUVHUSDUWLFOHVZKHUHDVWKHVHFRQGF\FORQHLVPDGH RIVPDOOHUGLDPHWHU6XFKDQDUUDQJHPHQWUHGXFHVDFFLGHQWDOUHHQWUDLQPHQWGXH WRHGG\FXUUHQWVDQGLQWKHµYRUWH[FRUH¶DOVR7KHFRPELQHGHIILFLHQF\RIVXFK F\FORQHVLVJLYHQE\

4XLWHRIWHQWZRF\FORQHVHSDUDWRUVDUHXVHGLQVHULHV7KHILUVWRQHLVDODUJH GLDPHWHUF\FORQHXVHIXOIRUFRDUVHUSDUWLFOHVZKHUHDVWKHVHFRQGF\FORQHLVPDGH RIVPDOOHUGLDPHWHU6XFKDQDUUDQJHPHQWUHGXFHVDFFLGHQWDOUHHQWUDLQPHQWGXH WRHGG\FXUUHQWVDQGLQWKHµYRUWH[FRUH¶DOVR7KHFRPELQHGHIILFLHQF\RIVXFK F\FORQHVLVJLYHQE\

3DUWLFXODWH&RQWURO7HFKQRORJLHV



$QRWKHUVLPSOHZD\WRHOLPLQDWHWKHHGG\IRUPDWLRQLVWRLQWURGXFHWKHJDV D[LDOO\WREULQJLWDURXQGWKHRXWHUHGJHRIWKHF\FORQHZLWKDVSLUDORIž7KLV DUUDQJHPHQW LV VKRZQ LQ )LJ  DQG NQRZQ DV µLQYROXWH¶ GHVLJQ 7KLV GHVLJQ SHUPLWVEHWWHUSDUWLFOHSURMHFWLRQWRZDUGVWKHZDOOVRIWKHF\FORQH7KXVORVVHVRI ILQH SDUWLFOH DUH DOVR PLQLPL]HG 3UHVVXUH GURS LV DOVR PXFK OHVV LQ µLQYROXWH¶ GHVLJQV 6LQFHWKHUHDUHQRPRYLQJSDUWVLQF\FORQHVJUDGXDOHURVLRQRIWKHF\OLQGHU ZDOOV RFFXUV RYHU D SHULRG RI WLPH (URVLRQ DQG FRUURVLRQ RI WKH PDWHULDO RI FRQVWUXFWLRQOHDGVWRWKHJUDGXDOORZHULQJRIHIILFLHQF\%XLOGXSRIGXVWFDNHDOVR FDXVHV ORVV RI HIILFLHQF\ OHDGLQJ WR IUHTXHQW PDLQWHQDQFH SUREOHPV *HQHUDOO\ SDUWLFOHVEHORZ±—GLDPHWHUVDUHQRWHIILFLHQWO\FROOHFWHGLQWKHF\FORQHV $QRWKHUWHFKQLTXHWRLPSURYHWKHHIILFLHQF\RIF\FORQHVLVWRHPSOR\DQXPEHU RI VPDOOHU F\FORQHV LQ D VLQJOH XQLW 7KLV EDWWHU\ RI VPDOOHU F\FORQHV LV FDOOHG µPXOWLSOHF\FORQHV¶RUµPXOWLFORQHV¶RUµWXEXODUF\FORQHV¶0XOWLSOHF\FORQHVFRQVLVW RIDQXPEHURIFPGLDPHWHUF\FORQHVDUUDQJHGLQURZVRISDUDOOHOWXEHVZLWKD VLQJOHLQOHWDQGRXWOHWGXFWDQGPXOWLSOHGXVWFROOHFWLRQV\VWHPV6HH)LJ  6XFKDQDUUDQJHPHQWKHOSVLQPDLQWDLQLQJDFRQVWDQWSUHVVXUHGURSLQHDFKF\FORQH +RZHYHULQPXOWLSOHF\FORQHVWKHGXVWFROOHFWRUTXLFNO\JHWVRYHUORDGHGWKHUHE\ QHFHVVLWDWLQJIUHTXHQWUHPRYDO,IWKHFROOHFWLRQEDJVDUHQRWUHSODFHGDWWKHVSHFLILHG SHULRG RI RSHUDWLRQ SOXJJLQJ RFFXUV DQG SDUWLFOH VHSDUDWLRQ HIILFLHQF\ GURSV GUDVWLFDOO\ Outlet

Inlet

Cyclone tubes

Hopper

3DUWLFXODWH&RQWURO7HFKQRORJLHV



$QRWKHUVLPSOHZD\WRHOLPLQDWHWKHHGG\IRUPDWLRQLVWRLQWURGXFHWKHJDV D[LDOO\WREULQJLWDURXQGWKHRXWHUHGJHRIWKHF\FORQHZLWKDVSLUDORIž7KLV DUUDQJHPHQW LV VKRZQ LQ )LJ  DQG NQRZQ DV µLQYROXWH¶ GHVLJQ 7KLV GHVLJQ SHUPLWVEHWWHUSDUWLFOHSURMHFWLRQWRZDUGVWKHZDOOVRIWKHF\FORQH7KXVORVVHVRI ILQH SDUWLFOH DUH DOVR PLQLPL]HG 3UHVVXUH GURS LV DOVR PXFK OHVV LQ µLQYROXWH¶ GHVLJQV 6LQFHWKHUHDUHQRPRYLQJSDUWVLQF\FORQHVJUDGXDOHURVLRQRIWKHF\OLQGHU ZDOOV RFFXUV RYHU D SHULRG RI WLPH (URVLRQ DQG FRUURVLRQ RI WKH PDWHULDO RI FRQVWUXFWLRQOHDGVWRWKHJUDGXDOORZHULQJRIHIILFLHQF\%XLOGXSRIGXVWFDNHDOVR FDXVHV ORVV RI HIILFLHQF\ OHDGLQJ WR IUHTXHQW PDLQWHQDQFH SUREOHPV *HQHUDOO\ SDUWLFOHVEHORZ±—GLDPHWHUVDUHQRWHIILFLHQWO\FROOHFWHGLQWKHF\FORQHV $QRWKHUWHFKQLTXHWRLPSURYHWKHHIILFLHQF\RIF\FORQHVLVWRHPSOR\DQXPEHU RI VPDOOHU F\FORQHV LQ D VLQJOH XQLW 7KLV EDWWHU\ RI VPDOOHU F\FORQHV LV FDOOHG µPXOWLSOHF\FORQHV¶RUµPXOWLFORQHV¶RUµWXEXODUF\FORQHV¶0XOWLSOHF\FORQHVFRQVLVW RIDQXPEHURIFPGLDPHWHUF\FORQHVDUUDQJHGLQURZVRISDUDOOHOWXEHVZLWKD VLQJOHLQOHWDQGRXWOHWGXFWDQGPXOWLSOHGXVWFROOHFWLRQV\VWHPV6HH)LJ  6XFKDQDUUDQJHPHQWKHOSVLQPDLQWDLQLQJDFRQVWDQWSUHVVXUHGURSLQHDFKF\FORQH +RZHYHULQPXOWLSOHF\FORQHVWKHGXVWFROOHFWRUTXLFNO\JHWVRYHUORDGHGWKHUHE\ QHFHVVLWDWLQJIUHTXHQWUHPRYDO,IWKHFROOHFWLRQEDJVDUHQRWUHSODFHGDWWKHVSHFLILHG SHULRG RI RSHUDWLRQ SOXJJLQJ RFFXUV DQG SDUWLFOH VHSDUDWLRQ HIILFLHQF\ GURSV GUDVWLFDOO\ Outlet

Inlet

Cyclone tubes

Hopper

)LJ0XOWLSOHF\FORQH

)LJ0XOWLSOHF\FORQH

4XLWHRIWHQWZRF\FORQHVHSDUDWRUVDUHXVHGLQVHULHV7KHILUVWRQHLVDODUJH GLDPHWHUF\FORQHXVHIXOIRUFRDUVHUSDUWLFOHVZKHUHDVWKHVHFRQGF\FORQHLVPDGH RIVPDOOHUGLDPHWHU6XFKDQDUUDQJHPHQWUHGXFHVDFFLGHQWDOUHHQWUDLQPHQWGXH WRHGG\FXUUHQWVDQGLQWKHµYRUWH[FRUH¶DOVR7KHFRPELQHGHIILFLHQF\RIVXFK F\FORQHVLVJLYHQE\

4XLWHRIWHQWZRF\FORQHVHSDUDWRUVDUHXVHGLQVHULHV7KHILUVWRQHLVDODUJH GLDPHWHUF\FORQHXVHIXOIRUFRDUVHUSDUWLFOHVZKHUHDVWKHVHFRQGF\FORQHLVPDGH RIVPDOOHUGLDPHWHU6XFKDQDUUDQJHPHQWUHGXFHVDFFLGHQWDOUHHQWUDLQPHQWGXH WRHGG\FXUUHQWVDQGLQWKHµYRUWH[FRUH¶DOVR7KHFRPELQHGHIILFLHQF\RIVXFK F\FORQHVLVJLYHQE\

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV K KSKV±KS

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV K KSKV±KS





ZKHUHKSLVWKHHIILFLHQF\RIWKHSULPDU\F\FORQHDQGKVLVWKHHIILFLHQF\RIWKH VHFRQGDU\F\FORQHEDVHGRQWKHRXWOHWRIWKHILUVWRQH

ZKHUHKSLVWKHHIILFLHQF\RIWKHSULPDU\F\FORQHDQGKVLVWKHHIILFLHQF\RIWKH VHFRQGDU\F\FORQHEDVHGRQWKHRXWOHWRIWKHILUVWRQH

$SSOLFDWLRQV

$SSOLFDWLRQV

&\FORQHV DUH YHU\ XVHIXO IRU WKH UHPRYDO RI SDUWLFOH ODGHQ JDVHRXV HPLVVLRQV 7KH\KDYHZLGHDSSOLFDWLRQVLQFHPHQWPDQXIDFWXUHPLQHUDOSURFHVVLQJWKHUPDO SRZHU JHQHUDWLRQ XQLWV IHHG DQG JUDLQ SURFHVVLQJ SDSHU DQG WH[WLOH LQGXVWULHV ZRRGZRUNLQJDVEHVWRVLQGXVWU\HWF7KH\DUHSDUWLFXODUO\XVHIXOLQURFNFUXVKLQJ DQGKDQGOLQJVDQGKDQGOLQJUHFRYHU\RIFDWDO\WLFGXVWVLQSHWUROHXPLQGXVWU\DQG LQWKHUHGXFWLRQRIFRDOIO\DVKHPLVVLRQV

&\FORQHV DUH YHU\ XVHIXO IRU WKH UHPRYDO RI SDUWLFOH ODGHQ JDVHRXV HPLVVLRQV 7KH\KDYHZLGHDSSOLFDWLRQVLQFHPHQWPDQXIDFWXUHPLQHUDOSURFHVVLQJWKHUPDO SRZHU JHQHUDWLRQ XQLWV IHHG DQG JUDLQ SURFHVVLQJ SDSHU DQG WH[WLOH LQGXVWULHV ZRRGZRUNLQJDVEHVWRVLQGXVWU\HWF7KH\DUHSDUWLFXODUO\XVHIXOLQURFNFUXVKLQJ DQGKDQGOLQJVDQGKDQGOLQJUHFRYHU\RIFDWDO\WLFGXVWVLQSHWUROHXPLQGXVWU\DQG LQWKHUHGXFWLRQRIFRDOIO\DVKHPLVVLRQV

 *$6 ),/75$7,21

 *$6 ),/75$7,21

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µIDEULFRUFORWKILOWHUV¶DQGµILEURXVRUGHHSEHG¶ILOWHUV

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µIDEULFRUFORWKILOWHUV¶DQGµILEURXVRUGHHSEHG¶ILOWHUV

)DEULF)LOWHUV

)DEULF)LOWHUV

)DEULF ILOWHUV DUH FRPPRQO\ XVHG LQ WKH IRUP RI WXEXODU EDJV RU IL[HG RQ ZLUH IUDPHVGHVLJQHGDVSLOORZFDVHV$QXPEHURIYHUWLFDOEDJVRI ± PPGLDPHWHU DQG ± PHWUH OHQJWK DUH DWWDFKHG WR D PDQLIROG ZLWK D VLQJOH KRSSHU DW WKH ERWWRPWKDWVHUYHVDVDGXVWFROOHFWRU(DFKLQGLYLGXDOILOWHUPD\EHRI±IHHW OHQJWKDQG±LQFKWKLFN7KHIDEULFDWHGVWUXFWXUHLVFDOOHGµEDJKRXVH¶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

)DEULF ILOWHUV DUH FRPPRQO\ XVHG LQ WKH IRUP RI WXEXODU EDJV RU IL[HG RQ ZLUH IUDPHVGHVLJQHGDVSLOORZFDVHV$QXPEHURIYHUWLFDOEDJVRI ± PPGLDPHWHU DQG ± PHWUH OHQJWK DUH DWWDFKHG WR D PDQLIROG ZLWK D VLQJOH KRSSHU DW WKH ERWWRPWKDWVHUYHVDVDGXVWFROOHFWRU(DFKLQGLYLGXDOILOWHUPD\EHRI±IHHW OHQJWKDQG±LQFKWKLFN7KHIDEULFDWHGVWUXFWXUHLVFDOOHGµEDJKRXVH¶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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

K KSKV±KS

K KSKV±KS





ZKHUHKSLVWKHHIILFLHQF\RIWKHSULPDU\F\FORQHDQGKVLVWKHHIILFLHQF\RIWKH VHFRQGDU\F\FORQHEDVHGRQWKHRXWOHWRIWKHILUVWRQH

ZKHUHKSLVWKHHIILFLHQF\RIWKHSULPDU\F\FORQHDQGKVLVWKHHIILFLHQF\RIWKH VHFRQGDU\F\FORQHEDVHGRQWKHRXWOHWRIWKHILUVWRQH

$SSOLFDWLRQV

$SSOLFDWLRQV

&\FORQHV DUH YHU\ XVHIXO IRU WKH UHPRYDO RI SDUWLFOH ODGHQ JDVHRXV HPLVVLRQV 7KH\KDYHZLGHDSSOLFDWLRQVLQFHPHQWPDQXIDFWXUHPLQHUDOSURFHVVLQJWKHUPDO SRZHU JHQHUDWLRQ XQLWV IHHG DQG JUDLQ SURFHVVLQJ SDSHU DQG WH[WLOH LQGXVWULHV ZRRGZRUNLQJDVEHVWRVLQGXVWU\HWF7KH\DUHSDUWLFXODUO\XVHIXOLQURFNFUXVKLQJ DQGKDQGOLQJVDQGKDQGOLQJUHFRYHU\RIFDWDO\WLFGXVWVLQSHWUROHXPLQGXVWU\DQG LQWKHUHGXFWLRQRIFRDOIO\DVKHPLVVLRQV

&\FORQHV DUH YHU\ XVHIXO IRU WKH UHPRYDO RI SDUWLFOH ODGHQ JDVHRXV HPLVVLRQV 7KH\KDYHZLGHDSSOLFDWLRQVLQFHPHQWPDQXIDFWXUHPLQHUDOSURFHVVLQJWKHUPDO SRZHU JHQHUDWLRQ XQLWV IHHG DQG JUDLQ SURFHVVLQJ SDSHU DQG WH[WLOH LQGXVWULHV ZRRGZRUNLQJDVEHVWRVLQGXVWU\HWF7KH\DUHSDUWLFXODUO\XVHIXOLQURFNFUXVKLQJ DQGKDQGOLQJVDQGKDQGOLQJUHFRYHU\RIFDWDO\WLFGXVWVLQSHWUROHXPLQGXVWU\DQG LQWKHUHGXFWLRQRIFRDOIO\DVKHPLVVLRQV

 *$6 ),/75$7,21

 *$6 ),/75$7,21

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µIDEULFRUFORWKILOWHUV¶DQGµILEURXVRUGHHSEHG¶ILOWHUV

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µIDEULFRUFORWKILOWHUV¶DQGµILEURXVRUGHHSEHG¶ILOWHUV

)DEULF)LOWHUV

)DEULF)LOWHUV

)DEULF ILOWHUV DUH FRPPRQO\ XVHG LQ WKH IRUP RI WXEXODU EDJV RU IL[HG RQ ZLUH IUDPHVGHVLJQHGDVSLOORZFDVHV$QXPEHURIYHUWLFDOEDJVRI ± PPGLDPHWHU DQG ± PHWUH OHQJWK DUH DWWDFKHG WR D PDQLIROG ZLWK D VLQJOH KRSSHU DW WKH ERWWRPWKDWVHUYHVDVDGXVWFROOHFWRU(DFKLQGLYLGXDOILOWHUPD\EHRI±IHHW OHQJWKDQG±LQFKWKLFN7KHIDEULFDWHGVWUXFWXUHLVFDOOHGµEDJKRXVH¶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

)DEULF ILOWHUV DUH FRPPRQO\ XVHG LQ WKH IRUP RI WXEXODU EDJV RU IL[HG RQ ZLUH IUDPHVGHVLJQHGDVSLOORZFDVHV$QXPEHURIYHUWLFDOEDJVRI ± PPGLDPHWHU DQG ± PHWUH OHQJWK DUH DWWDFKHG WR D PDQLIROG ZLWK D VLQJOH KRSSHU DW WKH ERWWRPWKDWVHUYHVDVDGXVWFROOHFWRU(DFKLQGLYLGXDOILOWHUPD\EHRI±IHHW OHQJWKDQG±LQFKWKLFN7KHIDEULFDWHGVWUXFWXUHLVFDOOHGµEDJKRXVH¶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

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV

Clean gas



Clean gas

Shaker mechanism

Shaker mechanism

Filter bags

Filter bags

Dusty gas in

Dusty gas in

Larger particle separation by centrifugal action

Hopper

Larger particle separation by centrifugal action

Hopper

Dust outlet

Dust outlet

)LJ%DJKRXVH

)LJ%DJKRXVH

 7KHRUHWLFDO $VSHFWV

 7KHRUHWLFDO $VSHFWV

$VPHQWLRQHGHDUOLHUWKHUHDUHWKUHHSRVVLEOHPHFKDQLVPVE\ZKLFKSDUWLFOHVDUH UHPRYHGIURPJDVYL]LQHUWLDOLPSDFWLRQGLUHFWLQWHUFHSWLRQDQGGLIIXVLRQ

$VPHQWLRQHGHDUOLHUWKHUHDUHWKUHHSRVVLEOHPHFKDQLVPVE\ZKLFKSDUWLFOHVDUH UHPRYHGIURPJDVYL]LQHUWLDOLPSDFWLRQGLUHFWLQWHUFHSWLRQDQGGLIIXVLRQ

 ,QHUWLDO ,PSDFWLRQ

 ,QHUWLDO ,PSDFWLRQ

)LJXUHVKRZVDVFKHPDWLFPHFKDQLVPRILQHUWLDOLPSDFWLRQ,QWKHILOWHUEDJV WKH LQIORZLQJ JDV WHQGV WR IORZ DURXQG WKH ILEUHV ZKHUHDV WKH SDUWLFOHV WHQG WR WUDYHOVWUDLJKWFDUULHGE\WKHLULQHUWLD,IWKHSDUWLFOHGLDPHWHUH[FHHGVWKHVXFFHVVLYH ILEUHGLVWDQFHVWKH\JHWORGJHGWKHUHRQO\DQGVORZO\DFDNHEXLOGVXS7KHLPSDFWLRQ SDUDPHWHU\ LVGHILQHGDVWKHUDWLRRIWKHGLDPHWHURIWKHWXEHRIJDVVWUHDPOLQHV SDUWLFOHFKDUDFWHULVWLFVDQGGLDPHWHURIWKHILEUHRQZKLFKSDUWLFOHVLPSDFW 7KHFROOLVLRQIDFWRU IF LVJLYHQE\

)LJXUHVKRZVDVFKHPDWLFPHFKDQLVPRILQHUWLDOLPSDFWLRQ,QWKHILOWHUEDJV WKH LQIORZLQJ JDV WHQGV WR IORZ DURXQG WKH ILEUHV ZKHUHDV WKH SDUWLFOHV WHQG WR WUDYHOVWUDLJKWFDUULHGE\WKHLULQHUWLD,IWKHSDUWLFOHGLDPHWHUH[FHHGVWKHVXFFHVVLYH ILEUHGLVWDQFHVWKH\JHWORGJHGWKHUHRQO\DQGVORZO\DFDNHEXLOGVXS7KHLPSDFWLRQ SDUDPHWHU\ LVGHILQHGDVWKHUDWLRRIWKHGLDPHWHURIWKHWXEHRIJDVVWUHDPOLQHV SDUWLFOHFKDUDFWHULVWLFVDQGGLDPHWHURIWKHILEUHRQZKLFKSDUWLFOHVLPSDFW 7KHFROOLVLRQIDFWRU IF LVJLYHQE\

IF

    H @ 

 2WKHU 0HFKDQLVPV

 2WKHU 0HFKDQLVPV

,QDGGLWLRQWRWKHDERYHWKUHHPHFKDQLVPVHOHFWURVWDWLFIRUFHVEHWZHHQWKHSDUWLFOHV DQGILEUHVSUREDEO\SOD\DQLPSRUWDQWUROHLQLPSURYLQJWKHFROOHFWLRQHIILFLHQF\ 7KHHOHFWURVWDWLFIRUFHVDUHJHQHUDWHGGXHWRIULFWLRQEHWZHHQJDVPROHFXOHVDQG ILEUHV $QRWKHU W\SH RI HOHFWURVWDWLF IRUFH LV RSHUDWLYH EHWZHHQ WKH ILEUHV DQG SDUWLFOHVPRYLQJDWKLJKYHORFLWLHV

,QDGGLWLRQWRWKHDERYHWKUHHPHFKDQLVPVHOHFWURVWDWLFIRUFHVEHWZHHQWKHSDUWLFOHV DQGILEUHVSUREDEO\SOD\DQLPSRUWDQWUROHLQLPSURYLQJWKHFROOHFWLRQHIILFLHQF\ 7KHHOHFWURVWDWLFIRUFHVDUHJHQHUDWHGGXHWRIULFWLRQEHWZHHQJDVPROHFXOHVDQG ILEUHV $QRWKHU W\SH RI HOHFWURVWDWLF IRUFH LV RSHUDWLYH EHWZHHQ WKH ILEUHV DQG SDUWLFOHVPRYLQJDWKLJKYHORFLWLHV

'HVLJQ$VSHFWVRI)DEULF)LOWHUV

'HVLJQ$VSHFWVRI)DEULF)LOWHUV

,PSRUWDQWGHVLJQSDUDPHWHUVIRUIDEULFILOWHUVLQFOXGHILOWHULQJDUHDFOHDQLQJF\FOH SUHVVXUHGURSDQGFRPSUHVVRUUHTXLUHPHQWV7KHILOWHULQJDUHDLVFDOFXODWHGXVLQJ ILOWUDWLRQYHORFLWLHVRUDLUWRFORWKUDWLRVIRUHDFKW\SHRIGXVW7DEOHVKRZV DLUFORWKUDWLRVIRUVRPHW\SHVRIGXVWV

,PSRUWDQWGHVLJQSDUDPHWHUVIRUIDEULFILOWHUVLQFOXGHILOWHULQJDUHDFOHDQLQJF\FOH SUHVVXUHGURSDQGFRPSUHVVRUUHTXLUHPHQWV7KHILOWHULQJDUHDLVFDOFXODWHGXVLQJ ILOWUDWLRQYHORFLWLHVRUDLUWRFORWKUDWLRVIRUHDFKW\SHRIGXVW7DEOHVKRZV DLUFORWKUDWLRVIRUVRPHW\SHVRIGXVWV

7DEOH  $LUFORWK UDWLRV IRU GXVWV

7DEOH  $LUFORWK UDWLRV IRU GXVWV

'XVW

0D[LPXPDLUFORWKUDWLRî±PV

'XVW

0D[LPXPDLUFORWKUDWLRî±PV

/HDWKHU SDSHU ZRRG



/HDWKHU SDSHU ZRRG



$OXPLQDFOD\FRNHFKDUFRDOPLFDWDOF



$OXPLQDFOD\FRNHFKDUFRDOPLFDWDOF



&DUERQIHUWLOL]HUVJUDSKLWHLURQRUHSLJPHQWV



&DUERQIHUWLOL]HUVJUDSKLWHLURQRUHSLJPHQWV



$VEHVWRV OLPHVWRQH TXDUW] VLOLFD



$VEHVWRV OLPHVWRQH TXDUW] VLOLFD



&RUN JUDLQV PDUEOH SRZGHU



&RUN JUDLQV PDUEOH SRZGHU



%DX[LWH FHUDPLFV IHOGVSDU JODVV SODVWLFV



%DX[LWH FHUDPLFV IHOGVSDU JODVV SODVWLFV



/HWWUEHWKHUXQWLPHVLQFHWKHILUVWFRPSDUWPHQWLVSXWLQWRVHUYLFHDQGVHFRQG FRPSDUWPHQW LV LQVXODWHG IRU FOHDQLQJ /HW WF EH WKH WLPH UHTXLUHG WR FOHDQ D FRPSDUWPHQW7KHYDOXHRIWFUDQJHVIURPPLQXWHV/HW1EHWKHQXPEHURI FRPSDUWPHQWVLQDFOHDQLQJF\FOHDQGWIEHWKHWRWDOILOWUDWLRQWLPHEHIRUHLWLVWDNHQ XSIRUFOHDQLQJ+HQFH

/HWWUEHWKHUXQWLPHVLQFHWKHILUVWFRPSDUWPHQWLVSXWLQWRVHUYLFHDQGVHFRQG FRPSDUWPHQW LV LQVXODWHG IRU FOHDQLQJ /HW WF EH WKH WLPH UHTXLUHG WR FOHDQ D FRPSDUWPHQW7KHYDOXHRIWFUDQJHVIURPPLQXWHV/HW1EHWKHQXPEHURI FRPSDUWPHQWVLQDFOHDQLQJF\FOHDQGWIEHWKHWRWDOILOWUDWLRQWLPHEHIRUHLWLVWDNHQ XSIRUFOHDQLQJ+HQFH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV WI 1WUWF ±WF

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

'3

PFD 

$ W

 9 

P5 P 9 $W

WI 1WUWF ±WF



$VILOWUDWLRQSURFHHGVGXVWFRQWLQXHVWREXLOGXS7KLVFDXVHVDSUHVVXUHGURS ZKLFKFDQEHHVWLPDWHGE\

'3



PFD 

$ W

 9 

P5 P 9 $W

ZKHUH —LVWKHG\QDPLFYLVFRVLW\RIDLU FLVWKHPDVVRIFDNHSHUXQLWYROXPHRIDLUILOWHUHG D LVWKHDYHUDJHVSHFLILFFDNHUHVLVWDQFHWLPH 9 LVWKHYROXPHRIDLUILOWHUHG$LVWKHILOWHUFORWKDUHD WLVWKHILOWUDWLRQWLPHDQG5PLVWKHUHVLVWDQFHRIWKHILOWHUFORWK

ZKHUH —LVWKHG\QDPLFYLVFRVLW\RIDLU FLVWKHPDVVRIFDNHSHUXQLWYROXPHRIDLUILOWHUHG D LVWKHDYHUDJHVSHFLILFFDNHUHVLVWDQFHWLPH 9 LVWKHYROXPHRIDLUILOWHUHG$LVWKHILOWHUFORWKDUHD WLVWKHILOWUDWLRQWLPHDQG5PLVWKHUHVLVWDQFHRIWKHILOWHUFORWK

6LQFH9$WLVWKHILOWUDWLRQYHORFLW\RUDLUFORWKUDWLR9ZHJHW

6LQFH9$WLVWKHILOWUDWLRQYHORFLW\RUDLUFORWKUDWLR9ZHJHW



PFD9W  P5 P 

'S 9



$VILOWUDWLRQSURFHHGVGXVWFRQWLQXHVWREXLOGXS7KLVFDXVHVDSUHVVXUHGURS ZKLFKFDQEHHVWLPDWHGE\





PFD9W  P5 P 

'S 9





,QSXOVHMHWEDJKRXVHVWKHEDJVDUHFOHDQHGXVLQJDEODVWRIKLJKSUHVVXUHDLU DW±îWRUUVDWLQWHUYDOVRIDIHZPLQXWHV7KHFRPSUHVVHGDLUIORZ UDWHLVDERXW±RIWKHILOWHUHGDLU

,QSXOVHMHWEDJKRXVHVWKHEDJVDUHFOHDQHGXVLQJDEODVWRIKLJKSUHVVXUHDLU DW±îWRUUVDWLQWHUYDOVRIDIHZPLQXWHV7KHFRPSUHVVHGDLUIORZ UDWHLVDERXW±RIWKHILOWHUHGDLU

([DPSOH $IORXUPLOOLVVXHVHPLVVLRQVDWWKHUDWHRIPV$EDJKRXVHLVWREHFRQVWUXFWHG WRFRQWUROWKHHPLVVLRQV(DFKEDJKDVDGLDPHWHUPDQGPOHQJWK'HWHUPLQH WKHQXPEHURIEDJVUHTXLUHG

([DPSOH $IORXUPLOOLVVXHVHPLVVLRQVDWWKHUDWHRIPV$EDJKRXVHLVWREHFRQVWUXFWHG WRFRQWUROWKHHPLVVLRQV(DFKEDJKDVDGLDPHWHUPDQGPOHQJWK'HWHUPLQH WKHQXPEHURIEDJVUHTXLUHG

6ROXWLRQ

6ROXWLRQ

)URP 7DEOH  WKH DLUFORWK UDWLR IRU JUDLQV LV  FIP SHU FXELF IHHW 7KLV FRUUHVSRQGVWRPVYHORFLW\

)URP 7DEOH  WKH DLUFORWK UDWLR IRU JUDLQV LV  FIP SHU FXELF IHHW 7KLV FRUUHVSRQGVWRPVYHORFLW\

 P  V IORZ UDWH u S u GLD u OHQJWK

1XPEHURIEDJVUHTXLUHG

 P  V IORZ UDWH u S u GLD u OHQJWK

1XPEHURIEDJVUHTXLUHG

 P V  PV u  u P u  P

 P V  PV u  u P u  P





7RWDOILOWHUDUHD îî

7RWDOILOWHUDUHD îî

P

P

7KLVPXFKDUHDFDQEHDFFRPPRGDWHGLQFRPSDUWPHQWV +HQFHQXPEHURIEDJVLQHDFKFRPSDUWPHQW 

7KLVPXFKDUHDFDQEHDFFRPPRGDWHGLQFRPSDUWPHQWV +HQFHQXPEHURIEDJVLQHDFKFRPSDUWPHQW 

EDJV   EDJV

EDJV   EDJV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV WI 1WUWF ±WF

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

$VILOWUDWLRQSURFHHGVGXVWFRQWLQXHVWREXLOGXS7KLVFDXVHVDSUHVVXUHGURS ZKLFKFDQEHHVWLPDWHGE\

'3

PFD 

$ W

 9 

P5 P 9 $W

WI 1WUWF ±WF



$VILOWUDWLRQSURFHHGVGXVWFRQWLQXHVWREXLOGXS7KLVFDXVHVDSUHVVXUHGURS ZKLFKFDQEHHVWLPDWHGE\

'3



PFD 

$ W

 9 

P5 P 9 $W

ZKHUH —LVWKHG\QDPLFYLVFRVLW\RIDLU FLVWKHPDVVRIFDNHSHUXQLWYROXPHRIDLUILOWHUHG D LVWKHDYHUDJHVSHFLILFFDNHUHVLVWDQFHWLPH 9 LVWKHYROXPHRIDLUILOWHUHG$LVWKHILOWHUFORWKDUHD WLVWKHILOWUDWLRQWLPHDQG5PLVWKHUHVLVWDQFHRIWKHILOWHUFORWK

ZKHUH —LVWKHG\QDPLFYLVFRVLW\RIDLU FLVWKHPDVVRIFDNHSHUXQLWYROXPHRIDLUILOWHUHG D LVWKHDYHUDJHVSHFLILFFDNHUHVLVWDQFHWLPH 9 LVWKHYROXPHRIDLUILOWHUHG$LVWKHILOWHUFORWKDUHD WLVWKHILOWUDWLRQWLPHDQG5PLVWKHUHVLVWDQFHRIWKHILOWHUFORWK

6LQFH9$WLVWKHILOWUDWLRQYHORFLW\RUDLUFORWKUDWLR9ZHJHW

6LQFH9$WLVWKHILOWUDWLRQYHORFLW\RUDLUFORWKUDWLR9ZHJHW



'S 9

PFD9W  P5 P 







'S 9

PFD9W  P5 P 





,QSXOVHMHWEDJKRXVHVWKHEDJVDUHFOHDQHGXVLQJDEODVWRIKLJKSUHVVXUHDLU DW±îWRUUVDWLQWHUYDOVRIDIHZPLQXWHV7KHFRPSUHVVHGDLUIORZ UDWHLVDERXW±RIWKHILOWHUHGDLU

,QSXOVHMHWEDJKRXVHVWKHEDJVDUHFOHDQHGXVLQJDEODVWRIKLJKSUHVVXUHDLU DW±îWRUUVDWLQWHUYDOVRIDIHZPLQXWHV7KHFRPSUHVVHGDLUIORZ UDWHLVDERXW±RIWKHILOWHUHGDLU

([DPSOH $IORXUPLOOLVVXHVHPLVVLRQVDWWKHUDWHRIPV$EDJKRXVHLVWREHFRQVWUXFWHG WRFRQWUROWKHHPLVVLRQV(DFKEDJKDVDGLDPHWHUPDQGPOHQJWK'HWHUPLQH WKHQXPEHURIEDJVUHTXLUHG

([DPSOH $IORXUPLOOLVVXHVHPLVVLRQVDWWKHUDWHRIPV$EDJKRXVHLVWREHFRQVWUXFWHG WRFRQWUROWKHHPLVVLRQV(DFKEDJKDVDGLDPHWHUPDQGPOHQJWK'HWHUPLQH WKHQXPEHURIEDJVUHTXLUHG

6ROXWLRQ

6ROXWLRQ

)URP 7DEOH  WKH DLUFORWK UDWLR IRU JUDLQV LV  FIP SHU FXELF IHHW 7KLV FRUUHVSRQGVWRPVYHORFLW\

)URP 7DEOH  WKH DLUFORWK UDWLR IRU JUDLQV LV  FIP SHU FXELF IHHW 7KLV FRUUHVSRQGVWRPVYHORFLW\

 P  V IORZ UDWH u S u GLD u OHQJWK

1XPEHURIEDJVUHTXLUHG

 P V  PV u  u P u  P 

 P  V IORZ UDWH u S u GLD u OHQJWK

1XPEHURIEDJVUHTXLUHG

 P V  PV u  u P u  P 

7RWDOILOWHUDUHD îî

7RWDOILOWHUDUHD îî

P

P

7KLVPXFKDUHDFDQEHDFFRPPRGDWHGLQFRPSDUWPHQWV +HQFHQXPEHURIEDJVLQHDFKFRPSDUWPHQW  EDJV   EDJV

7KLVPXFKDUHDFDQEHDFFRPPRGDWHGLQFRPSDUWPHQWV +HQFHQXPEHURIEDJVLQHDFKFRPSDUWPHQW  EDJV   EDJV

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV



([DPSOH ,Q D EDJ KRXVH WKH LQFRPLQJ YHORFLW\ RI WKH JDV LV  PPLQ 7KH ILOWHULQJ YHORFLW\LVPPLQ(DFKEDJLVRIFPZLGHDQGPLQOHQJWK,IWKHVSDFLQJ EHWZHHQ HDFK EDJ LV  FP DQG ZDOO LV  FP FDOFXODWH WKH QXPEHU RI EDJV UHTXLUHGDQGWKHZLGWKRIWKHEDJKRXVH

([DPSOH ,Q D EDJ KRXVH WKH LQFRPLQJ YHORFLW\ RI WKH JDV LV  PPLQ 7KH ILOWHULQJ YHORFLW\LVPPLQ(DFKEDJLVRIFPZLGHDQGPLQOHQJWK,IWKHVSDFLQJ EHWZHHQ HDFK EDJ LV  FP DQG ZDOO LV  FP FDOFXODWH WKH QXPEHU RI EDJV UHTXLUHGDQGWKHZLGWKRIWKHEDJKRXVH

6ROXWLRQ

6ROXWLRQ 4 PPLQ

4 PPLQ

)LOWHUYHORFLW\LVPPLQ

)LOWHUYHORFLW\LVPPLQ

 P PLQ  PPLQ

4

&ORWKDUHDIRUILOWHULQJ

 P PLQ  PPLQ

4

&ORWKDUHDIRUILOWHULQJ

 P 

 P 

$UHDRIHDFKEDJ S '+   u  u 

$UHDRIHDFKEDJ S '+   u  u 

 P 7RWDOQXPEHURIEDJV

 P   P 

 P

 RU

7RWDOQXPEHURIEDJV

  EDJV

 P   P 

 RU

  EDJV

$VVXPLQJWKDWWKHEDJVDUHDUUDQJHGLQDVTXDUHER[HDFKURZZLOOKDYHEDJV 7KHGLPHQVLRQRIWKHER[ZRXOGEH î î

$VVXPLQJWKDWWKHEDJVDUHDUUDQJHGLQDVTXDUHER[HDFKURZZLOOKDYHEDJV 7KHGLPHQVLRQRIWKHER[ZRXOGEH î î

P

P

 &KDUDFWHULVWLFV RI )LEUHV

 &KDUDFWHULVWLFV RI )LEUHV

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

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV



([DPSOH ,Q D EDJ KRXVH WKH LQFRPLQJ YHORFLW\ RI WKH JDV LV  PPLQ 7KH ILOWHULQJ YHORFLW\LVPPLQ(DFKEDJLVRIFPZLGHDQGPLQOHQJWK,IWKHVSDFLQJ EHWZHHQ HDFK EDJ LV  FP DQG ZDOO LV  FP FDOFXODWH WKH QXPEHU RI EDJV UHTXLUHGDQGWKHZLGWKRIWKHEDJKRXVH

([DPSOH ,Q D EDJ KRXVH WKH LQFRPLQJ YHORFLW\ RI WKH JDV LV  PPLQ 7KH ILOWHULQJ YHORFLW\LVPPLQ(DFKEDJLVRIFPZLGHDQGPLQOHQJWK,IWKHVSDFLQJ EHWZHHQ HDFK EDJ LV  FP DQG ZDOO LV  FP FDOFXODWH WKH QXPEHU RI EDJV UHTXLUHGDQGWKHZLGWKRIWKHEDJKRXVH

6ROXWLRQ

6ROXWLRQ 4 PPLQ

)LOWHUYHORFLW\LVPPLQ

4 PPLQ )LOWHUYHORFLW\LVPPLQ

 P PLQ  PPLQ

4

&ORWKDUHDIRUILOWHULQJ

 P PLQ  PPLQ

4

&ORWKDUHDIRUILOWHULQJ

 P  $UHDRIHDFKEDJ S '+   u  u 

 P  $UHDRIHDFKEDJ S '+   u  u 

 P 7RWDOQXPEHURIEDJV

 P   P 

 P

 RU

  EDJV

7RWDOQXPEHURIEDJV

 P   P 

 RU

  EDJV

$VVXPLQJWKDWWKHEDJVDUHDUUDQJHGLQDVTXDUHER[HDFKURZZLOOKDYHEDJV 7KHGLPHQVLRQRIWKHER[ZRXOGEH î î

$VVXPLQJWKDWWKHEDJVDUHDUUDQJHGLQDVTXDUHER[HDFKURZZLOOKDYHEDJV 7KHGLPHQVLRQRIWKHER[ZRXOGEH î î

P

P

 &KDUDFWHULVWLFV RI )LEUHV

 &KDUDFWHULVWLFV RI )LEUHV

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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

ODWH+RWJDVHVXSWRƒ)DUHEHVWKDQGOHGE\XVLQJFROORLGDOJUDSKLWHFRDWHG IDEULF7DEOHOLVWVW\SLFDOSURSHUWLHVRIGLIIHUHQWILEUHV>@

ODWH+RWJDVHVXSWRƒ)DUHEHVWKDQGOHGE\XVLQJFROORLGDOJUDSKLWHFRDWHG IDEULF7DEOHOLVWVW\SLFDOSURSHUWLHVRIGLIIHUHQWILEUHV>@

0HWKRGVRI&OHDQLQJ

0HWKRGVRI&OHDQLQJ

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

$SSOLFDWLRQV

$SSOLFDWLRQV

+LJKHIILFLHQF\GXVWILOWHUVLQYDULDEO\HPSOR\ILEURXVPHGLXP+HUHGXVWFROOHFWLRQ RFFXUVLQWKHLQWHUVWLFHVRIWKHILOWHUSDG)LEURXVILOWHUVILQGH[WHQVLYHXVHLQDLU FRQGLWLRQLQJDQGYHQWLODWLQJV\VWHPV7KH\DUHDOVRHPSOR\HGDVDIWHUFOHDQHUVRU DV URXJKLQJ XQLWV WR SURWHFW FRVWO\ HTXLSPHQW 7KH\ DUH VXLWDEOH IRU OLJKW GXVW ORDGV 6RPHWLPHVWKHILEUHVDUHFRDWHGZLWKKLJKIODVKSRLQWRLORUJUHDVHZLWKORZ YRODWLOLW\DQGJRRGZHWWLQJFKDUDFWHULVWLFV7KLVDUUDQJHPHQWKROGVWKHSDUWLFOHV

+LJKHIILFLHQF\GXVWILOWHUVLQYDULDEO\HPSOR\ILEURXVPHGLXP+HUHGXVWFROOHFWLRQ RFFXUVLQWKHLQWHUVWLFHVRIWKHILOWHUSDG)LEURXVILOWHUVILQGH[WHQVLYHXVHLQDLU FRQGLWLRQLQJDQGYHQWLODWLQJV\VWHPV7KH\DUHDOVRHPSOR\HGDVDIWHUFOHDQHUVRU DV URXJKLQJ XQLWV WR SURWHFW FRVWO\ HTXLSPHQW 7KH\ DUH VXLWDEOH IRU OLJKW GXVW ORDGV 6RPHWLPHVWKHILEUHVDUHFRDWHGZLWKKLJKIODVKSRLQWRLORUJUHDVHZLWKORZ YRODWLOLW\DQGJRRGZHWWLQJFKDUDFWHULVWLFV7KLVDUUDQJHPHQWKROGVWKHSDUWLFOHV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

ODWH+RWJDVHVXSWRƒ)DUHEHVWKDQGOHGE\XVLQJFROORLGDOJUDSKLWHFRDWHG IDEULF7DEOHOLVWVW\SLFDOSURSHUWLHVRIGLIIHUHQWILEUHV>@

ODWH+RWJDVHVXSWRƒ)DUHEHVWKDQGOHGE\XVLQJFROORLGDOJUDSKLWHFRDWHG IDEULF7DEOHOLVWVW\SLFDOSURSHUWLHVRIGLIIHUHQWILEUHV>@

0HWKRGVRI&OHDQLQJ

0HWKRGVRI&OHDQLQJ

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

$SSOLFDWLRQV

$SSOLFDWLRQV

+LJKHIILFLHQF\GXVWILOWHUVLQYDULDEO\HPSOR\ILEURXVPHGLXP+HUHGXVWFROOHFWLRQ RFFXUVLQWKHLQWHUVWLFHVRIWKHILOWHUSDG)LEURXVILOWHUVILQGH[WHQVLYHXVHLQDLU FRQGLWLRQLQJDQGYHQWLODWLQJV\VWHPV7KH\DUHDOVRHPSOR\HGDVDIWHUFOHDQHUVRU DV URXJKLQJ XQLWV WR SURWHFW FRVWO\ HTXLSPHQW 7KH\ DUH VXLWDEOH IRU OLJKW GXVW ORDGV 6RPHWLPHVWKHILEUHVDUHFRDWHGZLWKKLJKIODVKSRLQWRLORUJUHDVHZLWKORZ YRODWLOLW\DQGJRRGZHWWLQJFKDUDFWHULVWLFV7KLVDUUDQJHPHQWKROGVWKHSDUWLFOHV

+LJKHIILFLHQF\GXVWILOWHUVLQYDULDEO\HPSOR\ILEURXVPHGLXP+HUHGXVWFROOHFWLRQ RFFXUVLQWKHLQWHUVWLFHVRIWKHILOWHUSDG)LEURXVILOWHUVILQGH[WHQVLYHXVHLQDLU FRQGLWLRQLQJDQGYHQWLODWLQJV\VWHPV7KH\DUHDOVRHPSOR\HGDVDIWHUFOHDQHUVRU DV URXJKLQJ XQLWV WR SURWHFW FRVWO\ HTXLSPHQW 7KH\ DUH VXLWDEOH IRU OLJKW GXVW ORDGV 6RPHWLPHVWKHILEUHVDUHFRDWHGZLWKKLJKIODVKSRLQWRLORUJUHDVHZLWKORZ YRODWLOLW\DQGJRRGZHWWLQJFKDUDFWHULVWLFV7KLVDUUDQJHPHQWKROGVWKHSDUWLFOHV

6WURQJ

0HGLXP

6WURQJ

6WURQJ

3RO\HVWHU GDFURQ

7HWUDIOXRURHWK\OHQH 7HIORQ

*ODVV

³1RPH[´Q\ORQ

0HGLXP

6WURQJ

6WURQJ

0HGLXP

6WURQJ

6WURQJ

3RO\DPLGHQ\ORQ

3RO\HVWHU GDFURQ

7HWUDIOXRURHWK\OHQH 7HIORQ

*ODVV

³1RPH[´Q\ORQ

6WURQJ

&RWWRQ

:RRO

5HODWLYH VWUHQJWK

)LEUH





*RRG

*RRG

*RRG

*RRG

*RRG

*RRG

*RRG

2UJDQLF VROYHQWV

*RRG

0HGLXP

*RRG

*RRG

0HGLXP

0HGLXP

3RRU

$FLGV

0HGLXP

0HGLXP

*RRG

0HGLXP

*RRG

3RRU

0HGLXP

%DVHV

*RRG

*RRG

*RRG

*RRG

*RRG

*RRG

*RRG

2UJDQLF VROYHQWV

3RRUUHVLVWDQFHWRPRLVWXUH

3RRU UHVLVWDQFH WR DEUDVLRQ

([SHQVLYH

(DV\WRFOHDQ

(DV\WRFOHDQH[FHOOHQWUHVLVWDQFHWR DEUDVLRQ

)DLU UHVLVWDQFH WR DEUDVLRQ

/RZ FRVW

2WKHU SURSHUWLHV

3RRUUHVLVWDQFHWRPRLVWXUH

3RRU UHVLVWDQFH WR DEUDVLRQ

([SHQVLYH

(DV\WRFOHDQ

(DV\WRFOHDQH[FHOOHQWUHVLVWDQFHWR DEUDVLRQ

)DLU UHVLVWDQFH WR DEUDVLRQ

/RZ FRVW

2WKHU SURSHUWLHV





0HGLXP

0HGLXP

*RRG

0HGLXP

*RRG

3RRU

0HGLXP

%DVHV

5HODWLYHUHVLVWDQFHWRDWWDFNE\

*RRG

0HGLXP

*RRG

*RRG

0HGLXP

0HGLXP

3RRU

$FLGV

5HODWLYHUHVLVWDQFHWRDWWDFNE\

6WURQJ 6WURQJ

³1RPH[´Q\ORQ

0HGLXP 6WURQJ 6WURQJ

*ODVV ³1RPH[´Q\ORQ

3RO\DPLGHQ\ORQ

7HWUDIOXRURHWK\OHQH 7HIORQ

0HGLXP 6WURQJ

:RRO

6WURQJ

6WURQJ

&RWWRQ

3RO\HVWHU GDFURQ

5HODWLYH VWUHQJWK

)LEUH

7DEOH  &KDUDFWHULVWLFV RI VRPH ILEUHV

0HGLXP

*ODVV

3RO\DPLGHQ\ORQ

7HWUDIOXRURHWK\OHQH 7HIORQ

0HGLXP 6WURQJ

:RRO

6WURQJ

6WURQJ

&RWWRQ

3RO\HVWHU GDFURQ

5HODWLYH VWUHQJWK

)LEUH

7DEOH  &KDUDFWHULVWLFV RI VRPH ILEUHV















0D[LPXP XVDEOH WHPSƒ&















0D[LPXP XVDEOH WHPSƒ&

0HGLXP

0HGLXP

*RRG

0HGLXP

*RRG

3RRU

0HGLXP

%DVHV

*RRG

*RRG

*RRG

*RRG

*RRG

*RRG

*RRG

2UJDQLF VROYHQWV

*RRG

0HGLXP

*RRG

*RRG

0HGLXP

0HGLXP

3RRU

$FLGV

0HGLXP

0HGLXP

*RRG

0HGLXP

*RRG

3RRU

0HGLXP

%DVHV

*RRG

*RRG

*RRG

*RRG

*RRG

*RRG

*RRG

2UJDQLF VROYHQWV

5HODWLYHUHVLVWDQFHWRDWWDFNE\

*RRG

0HGLXP

*RRG

*RRG

0HGLXP

0HGLXP

3RRU

$FLGV

5HODWLYHUHVLVWDQFHWRDWWDFNE\

3RRUUHVLVWDQFHWRPRLVWXUH

3RRU UHVLVWDQFH WR DEUDVLRQ

([SHQVLYH

(DV\WRFOHDQ

(DV\WRFOHDQH[FHOOHQWUHVLVWDQFHWR DEUDVLRQ

)DLU UHVLVWDQFH WR DEUDVLRQ

/RZ FRVW

2WKHU SURSHUWLHV

3RRUUHVLVWDQFHWRPRLVWXUH

3RRU UHVLVWDQFH WR DEUDVLRQ

([SHQVLYH

(DV\WRFOHDQ

(DV\WRFOHDQH[FHOOHQWUHVLVWDQFHWR DEUDVLRQ

)DLU UHVLVWDQFH WR DEUDVLRQ

/RZ FRVW

2WKHU SURSHUWLHV











0D[LPXP XVDEOH WHPSƒ&















0D[LPXP XVDEOH WHPSƒ&

3DUWLFXODWH&RQWURO7HFKQRORJLHV

7DEOH  &KDUDFWHULVWLFV RI VRPH ILEUHV

0HGLXP

6WURQJ

3RO\DPLGHQ\ORQ

6WURQJ

&RWWRQ

:RRO

5HODWLYH VWUHQJWK

)LEUH

7DEOH  &KDUDFWHULVWLFV RI VRPH ILEUHV

3DUWLFXODWH&RQWURO7HFKQRORJLHV 3DUWLFXODWH&RQWURO7HFKQRORJLHV

3DUWLFXODWH&RQWURO7HFKQRORJLHV





 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

³LQ SODFH´ DQG SUHYHQWV IXUWKHU UHHQWUDLQPHQW 6XFK XQLWV DUH XVHIXO IRU DLU FRQGLWLRQLQJ 7R[LFGXVWVUDGLRDFWLYHPDWHULDODQGEDFWHULDOSDUWLFXODWHVDUHEHVWFROOHFWHG RQKLJKHIILFLHQF\SDSHUPHGLXP+(3$ FRQWDLQLQJJODVVPLFURSDUWLFOHV7KH SDSHUFDQEHIROGHGOLNHFRUUXJDWHGVKHHWVWRLQFUHDVHWKHHIILFLHQF\6XFKV\VWHPV DUH XVHIXO IRU DXWRPRWLYH DLU ILOWHUV DQG SKDUPDFHXWLFDO LQGXVWULHV DV WKH\ FDQ FROOHFWSDUWLFOHVXSWR—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

³LQ SODFH´ DQG SUHYHQWV IXUWKHU UHHQWUDLQPHQW 6XFK XQLWV DUH XVHIXO IRU DLU FRQGLWLRQLQJ 7R[LFGXVWVUDGLRDFWLYHPDWHULDODQGEDFWHULDOSDUWLFXODWHVDUHEHVWFROOHFWHG RQKLJKHIILFLHQF\SDSHUPHGLXP+(3$ FRQWDLQLQJJODVVPLFURSDUWLFOHV7KH SDSHUFDQEHIROGHGOLNHFRUUXJDWHGVKHHWVWRLQFUHDVHWKHHIILFLHQF\6XFKV\VWHPV DUH XVHIXO IRU DXWRPRWLYH DLU ILOWHUV DQG SKDUPDFHXWLFDO LQGXVWULHV DV WKH\ FDQ FROOHFWSDUWLFOHVXSWR—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

 (/(&75267$7,& 35(&,3,7$7256

 (/(&75267$7,& 35(&,3,7$7256

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

0HFKDQLVPRI3UHFLSLWDWLRQ

0HFKDQLVPRI3UHFLSLWDWLRQ

(OHFWURVWDWLFSUHFLSLWDWLRQLVDSK\VLFDOSURFHVV$VWKHSDUWLFOHODGHQJDVSDVVHV EHWZHHQ WKH HOHFWURGHV WKH SRWHQWLDO GLIIHUHQFH VHWV XS D FRURQD GLVFKDUJH

(OHFWURVWDWLFSUHFLSLWDWLRQLVDSK\VLFDOSURFHVV$VWKHSDUWLFOHODGHQJDVSDVVHV EHWZHHQ WKH HOHFWURGHV WKH SRWHQWLDO GLIIHUHQFH VHWV XS D FRURQD GLVFKDUJH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

³LQ SODFH´ DQG SUHYHQWV IXUWKHU UHHQWUDLQPHQW 6XFK XQLWV DUH XVHIXO IRU DLU FRQGLWLRQLQJ 7R[LFGXVWVUDGLRDFWLYHPDWHULDODQGEDFWHULDOSDUWLFXODWHVDUHEHVWFROOHFWHG RQKLJKHIILFLHQF\SDSHUPHGLXP+(3$ FRQWDLQLQJJODVVPLFURSDUWLFOHV7KH SDSHUFDQEHIROGHGOLNHFRUUXJDWHGVKHHWVWRLQFUHDVHWKHHIILFLHQF\6XFKV\VWHPV DUH XVHIXO IRU DXWRPRWLYH DLU ILOWHUV DQG SKDUPDFHXWLFDO LQGXVWULHV DV WKH\ FDQ FROOHFWSDUWLFOHVXSWR—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

³LQ SODFH´ DQG SUHYHQWV IXUWKHU UHHQWUDLQPHQW 6XFK XQLWV DUH XVHIXO IRU DLU FRQGLWLRQLQJ 7R[LFGXVWVUDGLRDFWLYHPDWHULDODQGEDFWHULDOSDUWLFXODWHVDUHEHVWFROOHFWHG RQKLJKHIILFLHQF\SDSHUPHGLXP+(3$ FRQWDLQLQJJODVVPLFURSDUWLFOHV7KH SDSHUFDQEHIROGHGOLNHFRUUXJDWHGVKHHWVWRLQFUHDVHWKHHIILFLHQF\6XFKV\VWHPV DUH XVHIXO IRU DXWRPRWLYH DLU ILOWHUV DQG SKDUPDFHXWLFDO LQGXVWULHV DV WKH\ FDQ FROOHFWSDUWLFOHVXSWR—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

 (/(&75267$7,& 35(&,3,7$7256

 (/(&75267$7,& 35(&,3,7$7256

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

0HFKDQLVPRI3UHFLSLWDWLRQ

0HFKDQLVPRI3UHFLSLWDWLRQ

(OHFWURVWDWLFSUHFLSLWDWLRQLVDSK\VLFDOSURFHVV$VWKHSDUWLFOHODGHQJDVSDVVHV EHWZHHQ WKH HOHFWURGHV WKH SRWHQWLDO GLIIHUHQFH VHWV XS D FRURQD GLVFKDUJH

(OHFWURVWDWLFSUHFLSLWDWLRQLVDSK\VLFDOSURFHVV$VWKHSDUWLFOHODGHQJDVSDVVHV EHWZHHQ WKH HOHFWURGHV WKH SRWHQWLDO GLIIHUHQFH VHWV XS D FRURQD GLVFKDUJH

3DUWLFXODWH&RQWURO7HFKQRORJLHV



Insulator

3DUWLFXODWH&RQWURO7HFKQRORJLHV



Insulator Clean gas

Clean gas

High voltage coole

Precipitator cell

High voltage coole

Precipitator cell

Rectifier set

Rectifier set (–)

Discharge electrode

(–)

Discharge electrode

Power supply

Power supply

(+)

(+)

Ground

Ground

Weight

Weight

Gas in

Gas in Collected dust

Collected dust

)LJ6FKHPDWLFGLDJUDPRIDZLUHDQGSLSHSUHFLSLWDWRU

)LJ6FKHPDWLFGLDJUDPRIDZLUHDQGSLSHSUHFLSLWDWRU

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

3DUWLFXODWH&RQWURO7HFKQRORJLHV



Insulator

3DUWLFXODWH&RQWURO7HFKQRORJLHV



Insulator Clean gas

Clean gas

High voltage coole

Precipitator cell

High voltage coole

Precipitator cell

Rectifier set

Rectifier set (–)

Discharge electrode

(–)

Discharge electrode

Power supply

Power supply

(+)

(+)

Ground

Ground

Weight Gas in

Weight Gas in

Collected dust

Collected dust

)LJ6FKHPDWLFGLDJUDPRIDZLUHDQGSLSHSUHFLSLWDWRU

)LJ6FKHPDWLFGLDJUDPRIDZLUHDQGSLSHSUHFLSLWDWRU

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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Clean gas

Clean gas

+

+

(–)

(–)

Corona discharge Dirty gas

Corona discharge Dirty gas

)LJ3ODQYLHZRI(63GHVLJQV

)LJ3ODQYLHZRI(63GHVLJQV

DEVRUE IUHH HOHFWURQV ,I WKH FDUULHU JDV FRQWDLQV QLWURJHQ WKH HOHFWURQV DUH QRW DEVRUEHG EXW SURGXFH D VSDUN XSRQ KLWWLQJ WKH HOHFWURGH 7KHUHIRUH LQGXVWULDO HOHFWURVWDWLFSUHFLSLWDWRUVXVHRQO\QHJDWLYHO\FKDUJHGSRWHQWLDOWRDYRLGH[FHVVLYH VSDUNLQJ 7KHILHOGVWUHQJWK( RIWKHHOHFWULFDOILHOGEHWZHHQWKHHOHFWURGHVLVGHVFULEHG E\WKH3RLVVRQ¶VHTXDWLRQ

DEVRUE IUHH HOHFWURQV ,I WKH FDUULHU JDV FRQWDLQV QLWURJHQ WKH HOHFWURQV DUH QRW DEVRUEHG EXW SURGXFH D VSDUN XSRQ KLWWLQJ WKH HOHFWURGH 7KHUHIRUH LQGXVWULDO HOHFWURVWDWLFSUHFLSLWDWRUVXVHRQO\QHJDWLYHO\FKDUJHGSRWHQWLDOWRDYRLGH[FHVVLYH VSDUNLQJ 7KHILHOGVWUHQJWK( RIWKHHOHFWULFDOILHOGEHWZHHQWKHHOHFWURGHVLVGHVFULEHG E\WKH3RLVVRQ¶VHTXDWLRQ

V .R

'(

ZKHUH V LVWKHVSDFHFKDUJHSHUXQLWYROXPHDQG.RLVWKHGLHOHFWULFFRQVWDQWRI WKHYDFXXP)RUZLUHDQGWXEHHOHFWURGHVZLWKQRVSDFHFKDUJH3RLVVRQ¶VHTXDWLRQ IRUF\OLQGULFDOFRRUGLQDWHVEHFRPHV

G( (  GU U



V .R



ZKHUH V LVWKHVSDFHFKDUJHSHUXQLWYROXPHDQG.RLVWKHGLHOHFWULFFRQVWDQWRI WKHYDFXXP)RUZLUHDQGWXEHHOHFWURGHVZLWKQRVSDFHFKDUJH3RLVVRQ¶VHTXDWLRQ IRUF\OLQGULFDOFRRUGLQDWHVEHFRPHV

G( (  GU U



,QWHJUDWLRQRIWKLVHTXDWLRQJLYHV





,QWHJUDWLRQRIWKLVHTXDWLRQJLYHV

& U 7KHFRQVWDQWRILQWHJUDWLRQ&FDQEHGHWHUPLQHGIURP (

9 



& U 7KHFRQVWDQWRILQWHJUDWLRQ&FDQEHGHWHUPLQHGIURP (

5

³

(GU

9 



5

ZKHUHULVWKHGLVWDQFHEHWZHHQWKHHOHFWURGHV8SRQLQWHJUDWLQJWKLVHTXDWLRQZH JHW &

'(



9 OQ  5 5 



5

³ (GU



5

ZKHUHULVWKHGLVWDQFHEHWZHHQWKHHOHFWURGHV8SRQLQWHJUDWLQJWKLVHTXDWLRQZH JHW &



9 OQ  5 5 



ZKHUH 5 DQG 5 DUH WKH UDGLXV RI WKH GLVFKDUJH HOHFWURGH DQG WKH FROOHFWLQJ HOHFWURGHUHVSHFWLYHO\ (TXDWLRQVKRZVWKDWWKHILQHUWKHGLVFKDUJHHOHFWURGHKLJKHUZLOOEHWKH ILHOGVWUHQJWK7KHILHOGVWUHQJWKGHFUHDVHVDVWKHGLVWDQFHEHWZHHQWKHHOHFWURGH

ZKHUH 5 DQG 5 DUH WKH UDGLXV RI WKH GLVFKDUJH HOHFWURGH DQG WKH FROOHFWLQJ HOHFWURGHUHVSHFWLYHO\ (TXDWLRQVKRZVWKDWWKHILQHUWKHGLVFKDUJHHOHFWURGHKLJKHUZLOOEHWKH ILHOGVWUHQJWK7KHILHOGVWUHQJWKGHFUHDVHVDVWKHGLVWDQFHEHWZHHQWKHHOHFWURGH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Clean gas

Clean gas

+

+

(–)

(–)

Corona discharge Dirty gas

Corona discharge Dirty gas

)LJ3ODQYLHZRI(63GHVLJQV

)LJ3ODQYLHZRI(63GHVLJQV

DEVRUE IUHH HOHFWURQV ,I WKH FDUULHU JDV FRQWDLQV QLWURJHQ WKH HOHFWURQV DUH QRW DEVRUEHG EXW SURGXFH D VSDUN XSRQ KLWWLQJ WKH HOHFWURGH 7KHUHIRUH LQGXVWULDO HOHFWURVWDWLFSUHFLSLWDWRUVXVHRQO\QHJDWLYHO\FKDUJHGSRWHQWLDOWRDYRLGH[FHVVLYH VSDUNLQJ 7KHILHOGVWUHQJWK( RIWKHHOHFWULFDOILHOGEHWZHHQWKHHOHFWURGHVLVGHVFULEHG E\WKH3RLVVRQ¶VHTXDWLRQ

DEVRUE IUHH HOHFWURQV ,I WKH FDUULHU JDV FRQWDLQV QLWURJHQ WKH HOHFWURQV DUH QRW DEVRUEHG EXW SURGXFH D VSDUN XSRQ KLWWLQJ WKH HOHFWURGH 7KHUHIRUH LQGXVWULDO HOHFWURVWDWLFSUHFLSLWDWRUVXVHRQO\QHJDWLYHO\FKDUJHGSRWHQWLDOWRDYRLGH[FHVVLYH VSDUNLQJ 7KHILHOGVWUHQJWK( RIWKHHOHFWULFDOILHOGEHWZHHQWKHHOHFWURGHVLVGHVFULEHG E\WKH3RLVVRQ¶VHTXDWLRQ

'(

V .R

ZKHUH V LVWKHVSDFHFKDUJHSHUXQLWYROXPHDQG.RLVWKHGLHOHFWULFFRQVWDQWRI WKHYDFXXP)RUZLUHDQGWXEHHOHFWURGHVZLWKQRVSDFHFKDUJH3RLVVRQ¶VHTXDWLRQ IRUF\OLQGULFDOFRRUGLQDWHVEHFRPHV

G( (  GU U



V .R



ZKHUH V LVWKHVSDFHFKDUJHSHUXQLWYROXPHDQG.RLVWKHGLHOHFWULFFRQVWDQWRI WKHYDFXXP)RUZLUHDQGWXEHHOHFWURGHVZLWKQRVSDFHFKDUJH3RLVVRQ¶VHTXDWLRQ IRUF\OLQGULFDOFRRUGLQDWHVEHFRPHV

G( (  GU U



,QWHJUDWLRQRIWKLVHTXDWLRQJLYHV





,QWHJUDWLRQRIWKLVHTXDWLRQJLYHV

& U 7KHFRQVWDQWRILQWHJUDWLRQ&FDQEHGHWHUPLQHGIURP (

9 



5

³ (GU

5



ZKHUHULVWKHGLVWDQFHEHWZHHQWKHHOHFWURGHV8SRQLQWHJUDWLQJWKLVHTXDWLRQZH JHW &

'(



9 OQ  5 5 



ZKHUH 5 DQG 5 DUH WKH UDGLXV RI WKH GLVFKDUJH HOHFWURGH DQG WKH FROOHFWLQJ HOHFWURGHUHVSHFWLYHO\ (TXDWLRQVKRZVWKDWWKHILQHUWKHGLVFKDUJHHOHFWURGHKLJKHUZLOOEHWKH ILHOGVWUHQJWK7KHILHOGVWUHQJWKGHFUHDVHVDVWKHGLVWDQFHEHWZHHQWKHHOHFWURGH

& U 7KHFRQVWDQWRILQWHJUDWLRQ&FDQEHGHWHUPLQHGIURP (

9 



5

³ (GU

5



ZKHUHULVWKHGLVWDQFHEHWZHHQWKHHOHFWURGHV8SRQLQWHJUDWLQJWKLVHTXDWLRQZH JHW &

9 OQ  5 5 



ZKHUH 5 DQG 5 DUH WKH UDGLXV RI WKH GLVFKDUJH HOHFWURGH DQG WKH FROOHFWLQJ HOHFWURGHUHVSHFWLYHO\ (TXDWLRQVKRZVWKDWWKHILQHUWKHGLVFKDUJHHOHFWURGHKLJKHUZLOOEHWKH ILHOGVWUHQJWK7KHILHOGVWUHQJWKGHFUHDVHVDVWKHGLVWDQFHEHWZHHQWKHHOHFWURGH

3DUWLFXODWH&RQWURO7HFKQRORJLHV



LQFUHDVHV 7KHUHIRUH IRU EHWWHU HIILFLHQF\ WKH VL]H RI WKH FRURQD VKRXOG EH DV VPDOO DV SRVVLEOH 7KH ILHOG VWUHQJWK UHTXLUHG WR SURGXFH D FRURQD DW URRP WHPSHUDWXUHDQGDWPSUHVVXUHLQDLULVJLYHQE\ (V

§    ·  u  E ¨ ¸ 5 ¹ ©



LQFUHDVHV 7KHUHIRUH IRU EHWWHU HIILFLHQF\ WKH VL]H RI WKH FRURQD VKRXOG EH DV VPDOO DV SRVVLEOH 7KH ILHOG VWUHQJWK UHTXLUHG WR SURGXFH D FRURQD DW URRP WHPSHUDWXUHDQGDWPSUHVVXUHLQDLULVJLYHQE\ (V



DQGWKHFRUUHVSRQGLQJYROWDJHLV (V

3DUWLFXODWH&RQWURO7HFKQRORJLHV

§    ·  u  E ¨ ¸ 5 ¹ ©



DQGWKHFRUUHVSRQGLQJYROWDJHLV

§    · § 5 ·  u  E ¨ ¸ 5OQ ¨ ¸ ¨ ¸ 5 ¹ © 5 ¹ ©

(V



§    · § 5 ·  u  E ¨ ¸ 5OQ ¨ ¸ ¨ ¸ 5 ¹ © 5 ¹ ©



ZKHUHELVWKHURXJKQHVVIDFWRURIWKHZLUHVXUIDFH 7KHSUHVHQFHRIGXVWSDUWLFOHVDOWHUVWKHILHOGVWUHQJWKDQGWKHYROWDJHUHTXLUHG WRSURGXFHWKHFRURQD9HU\ILQHGXVWVUHGXFHWKHFXUUHQWWRQHJOLJLEOHOHYHOVDQG GUDVWLFDOO\GHFUHDVHWKHSDUWLFOHFROOHFWLRQHIILFLHQF\

ZKHUHELVWKHURXJKQHVVIDFWRURIWKHZLUHVXUIDFH 7KHSUHVHQFHRIGXVWSDUWLFOHVDOWHUVWKHILHOGVWUHQJWKDQGWKHYROWDJHUHTXLUHG WRSURGXFHWKHFRURQD9HU\ILQHGXVWVUHGXFHWKHFXUUHQWWRQHJOLJLEOHOHYHOVDQG GUDVWLFDOO\GHFUHDVHWKHSDUWLFOHFROOHFWLRQHIILFLHQF\

 &ROOHFWLRQ (IILFLHQF\

 &ROOHFWLRQ (IILFLHQF\

7KHFROOHFWLRQHIILFLHQF\RIDQHOHFWURVWDWLFSUHFLSLWDWRULVDIXQFWLRQRIWKHJDV IORZUDWHDQGWKHVL]HRIWKHSUHFLSLWDWRU,WFDQEHGHULYHGHDVLO\7KHWUDMHFWRU\RI WKHFKDUJHGSDUWLFOHFDQEHUHVROYHGLQWRD[LDODQGYHUWLFDOFRPSRQHQWVDVVKRZQ EHORZ

7KHFROOHFWLRQHIILFLHQF\RIDQHOHFWURVWDWLFSUHFLSLWDWRULVDIXQFWLRQRIWKHJDV IORZUDWHDQGWKHVL]HRIWKHSUHFLSLWDWRU,WFDQEHGHULYHGHDVLO\7KHWUDMHFWRU\RI WKHFKDUJHGSDUWLFOHFDQEHUHVROYHGLQWRD[LDODQGYHUWLFDOFRPSRQHQWVDVVKRZQ EHORZ

L

z

v

y

L

Perimeter P

Area A

vpz = v

z

v

y

vpm

Perimeter P

Area A

vpz = v vpm

dz

dz

Particle trajectory

Particle trajectory

)LJ0RYHPHQWRIDFKDUJHGSDUWLFOH

)LJ0RYHPHQWRIDFKDUJHGSDUWLFOH

0DVVEDODQFHDFURVVDGLIIHUHQWLDOHOHPHQWG]ZLWKQRQHWHOHFWULFDOFKDUJHV FDQEHZULWWHQDV

0DVVEDODQFHDFURVVDGLIIHUHQWLDOHOHPHQWG]ZLWKQRQHWHOHFWULFDOFKDUJHV FDQEHZULWWHQDV

G& 9SP 3 G]  & 9 $ ZKHUH&LVWKHSDUWLFOHFRQFHQWUDWLRQPDVVSHUXQLWYROXPH 3LVWKHSHULPHWHURI WKHJHRPHWU\9SPLVWKHPLJUDWLRQYHORFLW\RIWKHSDUWLFOHDQG9LVWKHJDVYHORFLW\ ,QWHJUDWLQJ HTXDWLRQ  RYHU WKH OHQJWK RI WKH ZLUH / EHWZHHQ &R WR &/ FRQFHQWUDWLRQ  ZH JHW

G& 9SP 3 G]  & 9 $ ZKHUH&LVWKHSDUWLFOHFRQFHQWUDWLRQPDVVSHUXQLWYROXPH 3LVWKHSHULPHWHURI WKHJHRPHWU\9SPLVWKHPLJUDWLRQYHORFLW\RIWKHSDUWLFOHDQG9LVWKHJDVYHORFLW\ ,QWHJUDWLQJ HTXDWLRQ  RYHU WKH OHQJWK RI WKH ZLUH / EHWZHHQ &R WR &/ FRQFHQWUDWLRQ  ZH JHW

3DUWLFXODWH&RQWURO7HFKQRORJLHV



LQFUHDVHV 7KHUHIRUH IRU EHWWHU HIILFLHQF\ WKH VL]H RI WKH FRURQD VKRXOG EH DV VPDOO DV SRVVLEOH 7KH ILHOG VWUHQJWK UHTXLUHG WR SURGXFH D FRURQD DW URRP WHPSHUDWXUHDQGDWPSUHVVXUHLQDLULVJLYHQE\ (V

§    ·  u  E ¨ ¸ 5 ¹ ©



LQFUHDVHV 7KHUHIRUH IRU EHWWHU HIILFLHQF\ WKH VL]H RI WKH FRURQD VKRXOG EH DV VPDOO DV SRVVLEOH 7KH ILHOG VWUHQJWK UHTXLUHG WR SURGXFH D FRURQD DW URRP WHPSHUDWXUHDQGDWPSUHVVXUHLQDLULVJLYHQE\ (V



DQGWKHFRUUHVSRQGLQJYROWDJHLV (V

3DUWLFXODWH&RQWURO7HFKQRORJLHV

§    ·  u  E ¨ ¸ 5 ¹ ©



DQGWKHFRUUHVSRQGLQJYROWDJHLV

§    · § 5 ·  u  E ¨ ¸ 5OQ ¨ ¸ ¨ ¸ 5 ¹ © 5 ¹ ©

(V



§    · § 5 ·  u  E ¨ ¸ 5OQ ¨ ¸ ¨ ¸ 5 ¹ © 5 ¹ ©



ZKHUHELVWKHURXJKQHVVIDFWRURIWKHZLUHVXUIDFH 7KHSUHVHQFHRIGXVWSDUWLFOHVDOWHUVWKHILHOGVWUHQJWKDQGWKHYROWDJHUHTXLUHG WRSURGXFHWKHFRURQD9HU\ILQHGXVWVUHGXFHWKHFXUUHQWWRQHJOLJLEOHOHYHOVDQG GUDVWLFDOO\GHFUHDVHWKHSDUWLFOHFROOHFWLRQHIILFLHQF\

ZKHUHELVWKHURXJKQHVVIDFWRURIWKHZLUHVXUIDFH 7KHSUHVHQFHRIGXVWSDUWLFOHVDOWHUVWKHILHOGVWUHQJWKDQGWKHYROWDJHUHTXLUHG WRSURGXFHWKHFRURQD9HU\ILQHGXVWVUHGXFHWKHFXUUHQWWRQHJOLJLEOHOHYHOVDQG GUDVWLFDOO\GHFUHDVHWKHSDUWLFOHFROOHFWLRQHIILFLHQF\

 &ROOHFWLRQ (IILFLHQF\

 &ROOHFWLRQ (IILFLHQF\

7KHFROOHFWLRQHIILFLHQF\RIDQHOHFWURVWDWLFSUHFLSLWDWRULVDIXQFWLRQRIWKHJDV IORZUDWHDQGWKHVL]HRIWKHSUHFLSLWDWRU,WFDQEHGHULYHGHDVLO\7KHWUDMHFWRU\RI WKHFKDUJHGSDUWLFOHFDQEHUHVROYHGLQWRD[LDODQGYHUWLFDOFRPSRQHQWVDVVKRZQ EHORZ

7KHFROOHFWLRQHIILFLHQF\RIDQHOHFWURVWDWLFSUHFLSLWDWRULVDIXQFWLRQRIWKHJDV IORZUDWHDQGWKHVL]HRIWKHSUHFLSLWDWRU,WFDQEHGHULYHGHDVLO\7KHWUDMHFWRU\RI WKHFKDUJHGSDUWLFOHFDQEHUHVROYHGLQWRD[LDODQGYHUWLFDOFRPSRQHQWVDVVKRZQ EHORZ

L

z y

v

L

Perimeter P

Area A

vpz = v

z y

vpm

v

Area A

vpz = v vpm

dz Particle trajectory

Perimeter P

dz Particle trajectory

)LJ0RYHPHQWRIDFKDUJHGSDUWLFOH

)LJ0RYHPHQWRIDFKDUJHGSDUWLFOH

0DVVEDODQFHDFURVVDGLIIHUHQWLDOHOHPHQWG]ZLWKQRQHWHOHFWULFDOFKDUJHV FDQEHZULWWHQDV

0DVVEDODQFHDFURVVDGLIIHUHQWLDOHOHPHQWG]ZLWKQRQHWHOHFWULFDOFKDUJHV FDQEHZULWWHQDV

G& 9SP 3 G]  & 9 $ ZKHUH&LVWKHSDUWLFOHFRQFHQWUDWLRQPDVVSHUXQLWYROXPH 3LVWKHSHULPHWHURI WKHJHRPHWU\9SPLVWKHPLJUDWLRQYHORFLW\RIWKHSDUWLFOHDQG9LVWKHJDVYHORFLW\ ,QWHJUDWLQJ HTXDWLRQ  RYHU WKH OHQJWK RI WKH ZLUH / EHWZHHQ &R WR &/ FRQFHQWUDWLRQ  ZH JHW

G& 9SP 3 G]  & 9 $ ZKHUH&LVWKHSDUWLFOHFRQFHQWUDWLRQPDVVSHUXQLWYROXPH 3LVWKHSHULPHWHURI WKHJHRPHWU\9SPLVWKHPLJUDWLRQYHORFLW\RIWKHSDUWLFOHDQG9LVWKHJDVYHORFLW\ ,QWHJUDWLQJ HTXDWLRQ  RYHU WKH OHQJWK RI WKH ZLUH / EHWZHHQ &R WR &/ FRQFHQWUDWLRQ  ZH JHW

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV &/ &2

§ 9SP 3 · H[S ¨ / © 9 $ ¸¹

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7KHQWKHFROOHFWLRQHIILFLHQF\LVJLYHQE\ K   &/ &2

&/ &2



§ 9SP 3 · H[S ¨ / © 9 $ ¸¹



7KHQWKHFROOHFWLRQHIILFLHQF\LVJLYHQE\

§  9SP 3 ·   H[S ¨ / © 9 $ ¸¹

§  9SP $ F ·   H[S ¨ 4 © ¹¸

K   &/ &2



§  9SP $ F ·   H[S ¨ 4 © ¹¸



ZKHUH$9LVWKHYROXPHWULFIORZUDWHRIWKHJDV4 DQG3/LVWKHFROOHFWRUVXUIDFH DUHD$F 7KLVH[SUHVVLRQLVNQRZQDV'HXWVFKHTXDWLRQDQGLWLVDSSOLFDEOHWR ERWKWXEXODUDQGSODWHW\SHSUHFLSLWDWRUV(TXDWLRQFDQEHZULWWHQDV §  9SP $ F / · K   H[S ¨ 9 ¹¸ © 9

§  9SP 3 ·   H[S ¨ / © 9 $ ¸¹





ZKHUH$9LVWKHYROXPHWULFIORZUDWHRIWKHJDV4 DQG3/LVWKHFROOHFWRUVXUIDFH DUHD$F 7KLVH[SUHVVLRQLVNQRZQDV'HXWVFKHTXDWLRQDQGLWLVDSSOLFDEOHWR ERWKWXEXODUDQGSODWHW\SHSUHFLSLWDWRUV(TXDWLRQFDQEHZULWWHQDV §  9SP $ F / · K   H[S ¨ 9 ¹¸ © 9





ZKHUH9LVWKHYROXPHRIWKHSUHFLSLWDWRU

ZKHUH9LVWKHYROXPHRIWKHSUHFLSLWDWRU

)RUDF\OLQGULFDOW\SHFROOHFWRU$F9LVPDLQWDLQHGDW'FDQGIRUSDUDOOHOSODWH W\SHFROOHFWRU$F9LV6ZKHUH6LVWKHGLVWDQFHEHWZHHQWZRSDUDOOHOFROOHFWRUV 3DUWLFOHPLJUDWLRQYHORFLW\LVDVVXPHGWREHDIXQFWLRQRIWKHSDUWLFOHVL]HDQG SRWHQWLDO +RZHYHU LW PXVW EH QRWHG WKDW LW LV DOVR D IXQFWLRQ RI JDV YHORFLW\ YLVFRVLW\GLHOHFWULFDQGUHVLVWLYLW\SURSHUWLHVRIWKHGXVW0LJUDWLRQYHORFLWLHVIRU VRPHW\SLFDOGXVWSDUWLFOHVDUHJLYHQLQ7DEOH>@

)RUDF\OLQGULFDOW\SHFROOHFWRU$F9LVPDLQWDLQHGDW'FDQGIRUSDUDOOHOSODWH W\SHFROOHFWRU$F9LV6ZKHUH6LVWKHGLVWDQFHEHWZHHQWZRSDUDOOHOFROOHFWRUV 3DUWLFOHPLJUDWLRQYHORFLW\LVDVVXPHGWREHDIXQFWLRQRIWKHSDUWLFOHVL]HDQG SRWHQWLDO +RZHYHU LW PXVW EH QRWHG WKDW LW LV DOVR D IXQFWLRQ RI JDV YHORFLW\ YLVFRVLW\GLHOHFWULFDQGUHVLVWLYLW\SURSHUWLHVRIWKHGXVW0LJUDWLRQYHORFLWLHVIRU VRPHW\SLFDOGXVWSDUWLFOHVDUHJLYHQLQ7DEOH>@

7DEOH3DUWLFOHPLJUDWLRQYHORFLWLHV

7DEOH3DUWLFOHPLJUDWLRQYHORFLWLHV

$SSOLFDWLRQ

0LJUDWLRQYHORFLW\ QSPPV

$SSOLFDWLRQ

0LJUDWLRQYHORFLW\ QSPPV

3XOYHUL]HGFRDOIO\DVK 3DSHUPLOOV 2SHQKHDUWK IXUQDFHV 6HFRQGDU\ EODVW IXUQDFH *\SVXP +RW SKRVSKRUXV 6XOSKXULFDFLGPLVW &HPHQW :HW SURFHVV 'U\ SURFHVV &DWDO\VW GXVW

±    ±  ±

3XOYHUL]HGFRDOIO\DVK 3DSHUPLOOV 2SHQKHDUWK IXUQDFHV 6HFRQGDU\ EODVW IXUQDFH *\SVXP +RW SKRVSKRUXV 6XOSKXULFDFLGPLVW &HPHQW :HW SURFHVV 'U\ SURFHVV &DWDO\VW GXVW

±    ±  ±

± ± 

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV &/ &2

§ 9SP 3 · H[S ¨ / © 9 $ ¸¹

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV &/ &2



7KHQWKHFROOHFWLRQHIILFLHQF\LVJLYHQE\ K   &/ &2

± ± 

§ 9SP 3 · H[S ¨ / © 9 $ ¸¹



7KHQWKHFROOHFWLRQHIILFLHQF\LVJLYHQE\

§  9SP 3 ·   H[S ¨ / © 9 $ ¸¹

§  9SP $ F ·   H[S ¨ 4 © ¹¸

K   &/ &2



§  9SP $ F ·   H[S ¨ 4 © ¹¸



ZKHUH$9LVWKHYROXPHWULFIORZUDWHRIWKHJDV4 DQG3/LVWKHFROOHFWRUVXUIDFH DUHD$F 7KLVH[SUHVVLRQLVNQRZQDV'HXWVFKHTXDWLRQDQGLWLVDSSOLFDEOHWR ERWKWXEXODUDQGSODWHW\SHSUHFLSLWDWRUV(TXDWLRQFDQEHZULWWHQDV §  9SP $ F / · K   H[S ¨ 9 ¹¸ © 9

§  9SP 3 ·   H[S ¨ / © 9 $ ¸¹





ZKHUH$9LVWKHYROXPHWULFIORZUDWHRIWKHJDV4 DQG3/LVWKHFROOHFWRUVXUIDFH DUHD$F 7KLVH[SUHVVLRQLVNQRZQDV'HXWVFKHTXDWLRQDQGLWLVDSSOLFDEOHWR ERWKWXEXODUDQGSODWHW\SHSUHFLSLWDWRUV(TXDWLRQFDQEHZULWWHQDV §  9SP $ F / · K   H[S ¨ 9 ¹¸ © 9





ZKHUH9LVWKHYROXPHRIWKHSUHFLSLWDWRU

ZKHUH9LVWKHYROXPHRIWKHSUHFLSLWDWRU

)RUDF\OLQGULFDOW\SHFROOHFWRU$F9LVPDLQWDLQHGDW'FDQGIRUSDUDOOHOSODWH W\SHFROOHFWRU$F9LV6ZKHUH6LVWKHGLVWDQFHEHWZHHQWZRSDUDOOHOFROOHFWRUV 3DUWLFOHPLJUDWLRQYHORFLW\LVDVVXPHGWREHDIXQFWLRQRIWKHSDUWLFOHVL]HDQG SRWHQWLDO +RZHYHU LW PXVW EH QRWHG WKDW LW LV DOVR D IXQFWLRQ RI JDV YHORFLW\ YLVFRVLW\GLHOHFWULFDQGUHVLVWLYLW\SURSHUWLHVRIWKHGXVW0LJUDWLRQYHORFLWLHVIRU VRPHW\SLFDOGXVWSDUWLFOHVDUHJLYHQLQ7DEOH>@

)RUDF\OLQGULFDOW\SHFROOHFWRU$F9LVPDLQWDLQHGDW'FDQGIRUSDUDOOHOSODWH W\SHFROOHFWRU$F9LV6ZKHUH6LVWKHGLVWDQFHEHWZHHQWZRSDUDOOHOFROOHFWRUV 3DUWLFOHPLJUDWLRQYHORFLW\LVDVVXPHGWREHDIXQFWLRQRIWKHSDUWLFOHVL]HDQG SRWHQWLDO +RZHYHU LW PXVW EH QRWHG WKDW LW LV DOVR D IXQFWLRQ RI JDV YHORFLW\ YLVFRVLW\GLHOHFWULFDQGUHVLVWLYLW\SURSHUWLHVRIWKHGXVW0LJUDWLRQYHORFLWLHVIRU VRPHW\SLFDOGXVWSDUWLFOHVDUHJLYHQLQ7DEOH>@

7DEOH3DUWLFOHPLJUDWLRQYHORFLWLHV

7DEOH3DUWLFOHPLJUDWLRQYHORFLWLHV

$SSOLFDWLRQ

0LJUDWLRQYHORFLW\ QSPPV

$SSOLFDWLRQ

0LJUDWLRQYHORFLW\ QSPPV

3XOYHUL]HGFRDOIO\DVK 3DSHUPLOOV 2SHQKHDUWK IXUQDFHV 6HFRQGDU\ EODVW IXUQDFH *\SVXP +RW SKRVSKRUXV 6XOSKXULFDFLGPLVW &HPHQW :HW SURFHVV 'U\ SURFHVV &DWDO\VW GXVW

±    ±  ±

3XOYHUL]HGFRDOIO\DVK 3DSHUPLOOV 2SHQKHDUWK IXUQDFHV 6HFRQGDU\ EODVW IXUQDFH *\SVXP +RW SKRVSKRUXV 6XOSKXULFDFLGPLVW &HPHQW :HW SURFHVV 'U\ SURFHVV &DWDO\VW GXVW

±    ±  ±

± ± 

± ± 

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV



([DPSOH $SODWHW\SHHOHFWURVWDWLFSUHFLSLWDWRULQDFHPHQWSODQWKDVHTXDOFKDQQHOV7KH VSDFLQJEHWZHHQWKHSODWHVLVPDQGWKHSODWHVDUHPORQJZLWKDQHTXDO KHLJKW:KDWLVWKHFROOHFWLRQHIILFLHQF\IRUDJDVPRYLQJDWDYHORFLW\RI PKU" ZKDW VKRXOG EH WKH OHQJWK RI WKH SODWHV IRU  FROOHFWLRQ HIILFLHQF\" $VVXPHWKDWPLJUDWLRQYHORFLW\LVPV

([DPSOH $SODWHW\SHHOHFWURVWDWLFSUHFLSLWDWRULQDFHPHQWSODQWKDVHTXDOFKDQQHOV7KH VSDFLQJEHWZHHQWKHSODWHVLVPDQGWKHSODWHVDUHPORQJZLWKDQHTXDO KHLJKW:KDWLVWKHFROOHFWLRQHIILFLHQF\IRUDJDVPRYLQJDWDYHORFLW\RI PKU" ZKDW VKRXOG EH WKH OHQJWK RI WKH SODWHV IRU  FROOHFWLRQ HIILFLHQF\" $VVXPHWKDWPLJUDWLRQYHORFLW\LVPV

6ROXWLRQ 7KHFROOHFWLRQHIILFLHQF\LVJLYHQE\

6ROXWLRQ 7KHFROOHFWLRQHIILFLHQF\LVJLYHQE\

§  9SP Â$F · K   H[S ¨ ¸ 4 © ¹ :KHUH

§  9SP Â$F · K   H[S ¨ ¸ 4 © ¹

$F FROOHFWRUVXUIDFHDUHD îî P

:KHUH

9SP  PLJUDWLRQYHORFLW\ PVDQG

$F FROOHFWRUVXUIDFHDUHD îî P

9SP  PLJUDWLRQYHORFLW\ PVDQG

4 9ROXPHIORZUDWHSHUVHFRQG  

4 9ROXPHIORZUDWHSHUVHFRQG  

 PVSHUFKDQQHO

 PVSHUFKDQQHO

§  u  · K   H[S ¨ ¸ ©  ¹

7KHUHIRUH

§  u  · K   H[S ¨ ¸ ©  ¹

7KHUHIRUH











1RZ$F 9IRUDSDUDOOHOSODWHFROOHFWRU 6ZKHUH6LVWKHVSDFLQJ7KHUHIRUH $F  9

4 $

9

$F  9

  u 

 PVHFRQG

4 $

9

  u 

 PVHFRQG

)RUHIILFLHQF\K 7KHUHIRUH

9SP § $F · / 9 ¨© 9 ¸¹ /

  P  

7KHYHORFLW\RIWKHJDVLQHDFKFKDQQHOLVJLYHQE\

)RUHIILFLHQF\K 7KHUHIRUH

+HQFH

1RZ$F 9IRUDSDUDOOHOSODWHFROOHFWRU 6ZKHUH6LVWKHVSDFLQJ7KHUHIRUH

  P  

7KHYHORFLW\RIWKHJDVLQHDFKFKDQQHOLVJLYHQE\



9SP § $F · / 9 ¨© 9 ¸¹



 u   u 

/

+HQFH

PRUVD\PHWUH

3DUWLFXODWH&RQWURO7HFKQRORJLHV



 u   u 

PRUVD\PHWUH



3DUWLFXODWH&RQWURO7HFKQRORJLHV



([DPSOH $SODWHW\SHHOHFWURVWDWLFSUHFLSLWDWRULQDFHPHQWSODQWKDVHTXDOFKDQQHOV7KH VSDFLQJEHWZHHQWKHSODWHVLVPDQGWKHSODWHVDUHPORQJZLWKDQHTXDO KHLJKW:KDWLVWKHFROOHFWLRQHIILFLHQF\IRUDJDVPRYLQJDWDYHORFLW\RI PKU" ZKDW VKRXOG EH WKH OHQJWK RI WKH SODWHV IRU  FROOHFWLRQ HIILFLHQF\" $VVXPHWKDWPLJUDWLRQYHORFLW\LVPV

([DPSOH $SODWHW\SHHOHFWURVWDWLFSUHFLSLWDWRULQDFHPHQWSODQWKDVHTXDOFKDQQHOV7KH VSDFLQJEHWZHHQWKHSODWHVLVPDQGWKHSODWHVDUHPORQJZLWKDQHTXDO KHLJKW:KDWLVWKHFROOHFWLRQHIILFLHQF\IRUDJDVPRYLQJDWDYHORFLW\RI PKU" ZKDW VKRXOG EH WKH OHQJWK RI WKH SODWHV IRU  FROOHFWLRQ HIILFLHQF\" $VVXPHWKDWPLJUDWLRQYHORFLW\LVPV

6ROXWLRQ 7KHFROOHFWLRQHIILFLHQF\LVJLYHQE\

6ROXWLRQ 7KHFROOHFWLRQHIILFLHQF\LVJLYHQE\

§  9SP Â$F · K   H[S ¨ ¸ 4 © ¹ :KHUH

$F FROOHFWRUVXUIDFHDUHD îî P

§  9SP Â$F · K   H[S ¨ ¸ 4 © ¹ :KHUH

9SP  PLJUDWLRQYHORFLW\ PVDQG

9SP  PLJUDWLRQYHORFLW\ PVDQG

4 9ROXPHIORZUDWHSHUVHFRQG   

4 9ROXPHIORZUDWHSHUVHFRQG  

PVSHUFKDQQHO

§  u  · K   H[S ¨ ¸ ©  ¹

7KHUHIRUH

$F FROOHFWRUVXUIDFHDUHD îî P

 PVSHUFKDQQHO §  u  · K   H[S ¨ ¸ ©  ¹

7KHUHIRUH









1RZ$F 9IRUDSDUDOOHOSODWHFROOHFWRU 6ZKHUH6LVWKHVSDFLQJ7KHUHIRUH $F  9

4 $

  u 

9SP § $F · / 9 ¨© 9 ¸¹ +HQFH

/

$F  9

  P  

7KHYHORFLW\RIWKHJDVLQHDFKFKDQQHOLVJLYHQE\

 PVHFRQG

)RUHIILFLHQF\K 7KHUHIRUH



1RZ$F 9IRUDSDUDOOHOSODWHFROOHFWRU 6ZKHUH6LVWKHVSDFLQJ7KHUHIRUH

  P  

7KHYHORFLW\RIWKHJDVLQHDFKFKDQQHOLVJLYHQE\ 9



4 $

9

  u 

 PVHFRQG

)RUHIILFLHQF\K 7KHUHIRUH

9SP § $F · / 9 ¨© 9 ¸¹



 u   u 

PRUVD\PHWUH

+HQFH

/



 u   u 

PRUVD\PHWUH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

([DPSOH $ FRDO ILUHG SRZHU SODQW KDV DQ (63 ZRUNLQJ DW  HIILFLHQF\ 7R PHHW WKH VWDWXWRU\UHTXLUHPHQWRIDQGHIILFLHQF\WRZKDWH[WHQWWKHFROOHFWLRQ DUHDVKRXOGEHLQFUHDVHG"

([DPSOH $ FRDO ILUHG SRZHU SODQW KDV DQ (63 ZRUNLQJ DW  HIILFLHQF\ 7R PHHW WKH VWDWXWRU\UHTXLUHPHQWRIDQGHIILFLHQF\WRZKDWH[WHQWWKHFROOHFWLRQ DUHDVKRXOGEHLQFUHDVHG"

6ROXWLRQ 3HUFHQWLQFUHDVHLQHIILFLHQF\3 ±KH[LVWLQJ 

6ROXWLRQ 3HUFHQWLQFUHDVHLQHIILFLHQF\3 ±KH[LVWLQJ 

7KHUHIRUHIRUPL[HGIORZ

7KHUHIRUHIRUPL[HGIORZ



§ Z$ · H[S ¨ ¸ IRU EORFN IORZ ¨ 4J ¸ © ¹

SQHZ ±QQHZ ± H[SZ$4

L LL



§ Z$ · H[S ¨ ¸ IRU EORFN IORZ ¨ 4J ¸ © ¹

SQHZ ±QQHZ ± H[SZ$4

L LL

ZKHUHZLVWKHPLJUDWLRQYHORFLW\RUGULIWRIWKHSDUWLFOHLQPVDQG4JLVWKHJDV IORZ UDWH

ZKHUHZLVWKHPLJUDWLRQYHORFLW\RUGULIWRIWKHSDUWLFOHLQPVDQG4JLVWKHJDV IORZ UDWH

7DNLQJORJDULWKPVZHFDQFRPSDUHL DQGLL

7DNLQJORJDULWKPVZHFDQFRPSDUHL DQGLL

ORJ  ORJ 



 Z$ 4 Z$  4

ORJ  ORJ 

RQVLPSOLILFDWLRQZHJHW



 Z$ 4 Z$  4

RQVLPSOLILFDWLRQZHJHW

$ QHZ $ H[LVWLQJ

 

$ QHZ $ H[LVWLQJ



 



7KHUHIRUHIRUDFKLHYLQJHIILFLHQF\WKHFROOHFWLRQDUHDVKRXOGEHLQFUHDVHG WLPHV

7KHUHIRUHIRUDFKLHYLQJHIILFLHQF\WKHFROOHFWLRQDUHDVKRXOGEHLQFUHDVHG WLPHV

$VLPLODUFDOFXODWLRQVKRZVWKDWWRDFKLHYHHIILFLHQF\WKHDUHDVKRXOGEH LQFUHDVHGIXUWKHUE\WLPHVDSSUR[LPDWHO\

$VLPLODUFDOFXODWLRQVKRZVWKDWWRDFKLHYHHIILFLHQF\WKHDUHDVKRXOGEH LQFUHDVHGIXUWKHUE\WLPHVDSSUR[LPDWHO\

([DPSOH $WKHUPDOSRZHUSODQWKDVDQ(63RIPFROOHFWRUDUHD$WPVRIWKH IOXHJDVYHORFLW\(63RSHUDWHVDWHIILFLHQF\:KDWZRXOGEHWKHUHTXLUHGDUHD WRDFKLHYHFROOHFWLRQHIILFLHQF\"

([DPSOH $WKHUPDOSRZHUSODQWKDVDQ(63RIPFROOHFWRUDUHD$WPVRIWKH IOXHJDVYHORFLW\(63RSHUDWHVDWHIILFLHQF\:KDWZRXOGEHWKHUHTXLUHGDUHD WRDFKLHYHFROOHFWLRQHIILFLHQF\"

6ROXWLRQ )ORZUDWHRIWKHIOXHJDV PVDQGWKHFROOHFWLQJDUHDLVP

6ROXWLRQ )ORZUDWHRIWKHIOXHJDV PVDQGWKHFROOHFWLQJDUHDLVP

'ULIWYHORFLW\ Z

IORZ UDWH OQ   K DUHD

'ULIWYHORFLW\ Z

 P  V OQ     P

IORZ UDWH OQ   K DUHD

 P  V OQ     P

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

([DPSOH $ FRDO ILUHG SRZHU SODQW KDV DQ (63 ZRUNLQJ DW  HIILFLHQF\ 7R PHHW WKH VWDWXWRU\UHTXLUHPHQWRIDQGHIILFLHQF\WRZKDWH[WHQWWKHFROOHFWLRQ DUHDVKRXOGEHLQFUHDVHG"

([DPSOH $ FRDO ILUHG SRZHU SODQW KDV DQ (63 ZRUNLQJ DW  HIILFLHQF\ 7R PHHW WKH VWDWXWRU\UHTXLUHPHQWRIDQGHIILFLHQF\WRZKDWH[WHQWWKHFROOHFWLRQ DUHDVKRXOGEHLQFUHDVHG"

6ROXWLRQ 3HUFHQWLQFUHDVHLQHIILFLHQF\3 ±KH[LVWLQJ 

6ROXWLRQ 3HUFHQWLQFUHDVHLQHIILFLHQF\3 ±KH[LVWLQJ 

7KHUHIRUHIRUPL[HGIORZ

7KHUHIRUHIRUPL[HGIORZ



§ Z$ · H[S ¨ ¸ IRU EORFN IORZ ¨ 4J ¸ © ¹

SQHZ ±QQHZ ± H[SZ$4

L LL



§ Z$ · H[S ¨ ¸ IRU EORFN IORZ ¨ 4J ¸ © ¹

SQHZ ±QQHZ ± H[SZ$4

L LL

ZKHUHZLVWKHPLJUDWLRQYHORFLW\RUGULIWRIWKHSDUWLFOHLQPVDQG4JLVWKHJDV IORZ UDWH

ZKHUHZLVWKHPLJUDWLRQYHORFLW\RUGULIWRIWKHSDUWLFOHLQPVDQG4JLVWKHJDV IORZ UDWH

7DNLQJORJDULWKPVZHFDQFRPSDUHL DQGLL

7DNLQJORJDULWKPVZHFDQFRPSDUHL DQGLL

ORJ  ORJ 



 Z$ 4 Z$  4

RQVLPSOLILFDWLRQZHJHW

ORJ  ORJ 



 Z$ 4 Z$  4

RQVLPSOLILFDWLRQZHJHW

$ QHZ $ H[LVWLQJ

 



$ QHZ $ H[LVWLQJ

 



7KHUHIRUHIRUDFKLHYLQJHIILFLHQF\WKHFROOHFWLRQDUHDVKRXOGEHLQFUHDVHG WLPHV

7KHUHIRUHIRUDFKLHYLQJHIILFLHQF\WKHFROOHFWLRQDUHDVKRXOGEHLQFUHDVHG WLPHV

$VLPLODUFDOFXODWLRQVKRZVWKDWWRDFKLHYHHIILFLHQF\WKHDUHDVKRXOGEH LQFUHDVHGIXUWKHUE\WLPHVDSSUR[LPDWHO\

$VLPLODUFDOFXODWLRQVKRZVWKDWWRDFKLHYHHIILFLHQF\WKHDUHDVKRXOGEH LQFUHDVHGIXUWKHUE\WLPHVDSSUR[LPDWHO\

([DPSOH $WKHUPDOSRZHUSODQWKDVDQ(63RIPFROOHFWRUDUHD$WPVRIWKH IOXHJDVYHORFLW\(63RSHUDWHVDWHIILFLHQF\:KDWZRXOGEHWKHUHTXLUHGDUHD WRDFKLHYHFROOHFWLRQHIILFLHQF\"

([DPSOH $WKHUPDOSRZHUSODQWKDVDQ(63RIPFROOHFWRUDUHD$WPVRIWKH IOXHJDVYHORFLW\(63RSHUDWHVDWHIILFLHQF\:KDWZRXOGEHWKHUHTXLUHGDUHD WRDFKLHYHFROOHFWLRQHIILFLHQF\"

6ROXWLRQ )ORZUDWHRIWKHIOXHJDV PVDQGWKHFROOHFWLQJDUHDLVP

6ROXWLRQ )ORZUDWHRIWKHIOXHJDV PVDQGWKHFROOHFWLQJDUHDLVP

'ULIWYHORFLW\ Z

IORZ UDWH OQ   K DUHD

 P  V OQ     P

'ULIWYHORFLW\ Z

IORZ UDWH OQ   K DUHD

 P  V OQ     P

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV

 P  V

 P  V

7RDFKLHYHHIILFLHQF\WKHDUHDUHTXLUHGLV

7RDFKLHYHHIILFLHQF\WKHDUHDUHTXLUHGLV

$

 P  V OQ    P  V

$

 P  V OQ    P  V

$

 P 

$

 P 



([DPSOH

([DPSOH

$ FHPHQW SODQW KDV D  FKDQQHO (63 WR KDQGOH  PK RI IOXH JDV 7KH YHORFLW\RIWKHSDUWLFOH Q U LVPVHFDQGSODWHKHLJKWLVPZLWKDVSDFLQJRI P'HWHUPLQHWKHSODWHOHQJWKWRREWDLQDQGFROOHFWLRQHIILFLHQF\

$ FHPHQW SODQW KDV D  FKDQQHO (63 WR KDQGOH  PK RI IOXH JDV 7KH YHORFLW\RIWKHSDUWLFOH Q U LVPVHFDQGSODWHKHLJKWLVPZLWKDVSDFLQJRI P'HWHUPLQHWKHSODWHOHQJWKWRREWDLQDQGFROOHFWLRQHIILFLHQF\

6ROXWLRQ

6ROXWLRQ PKRXU

*DVIRZUDWH  7KHWRWDOQXPEHURIFKDQQHOVLVDQGWKHWRWDOQXPEHURISODWHVLV 

*DVIRZUDWH PKRXU  PVHF 7KHWRWDOQXPEHURIFKDQQHOVLVDQGWKHWRWDOQXPEHURISODWHVLV 

*DVIORZUDWHSHUFKDQQHO PVHF

*DVIORZUDWHSHUFKDQQHO PVHF

$UHDRIWKHFROOHFWLQJHOHFWURGHFKDQQHO î/P

$UHDRIWKHFROOHFWLQJHOHFWURGHFKDQQHO î/P

9HORFLW\RIWKHJDV  9J

(IILFLHQF\ 

PVHF

4 +J6

9HORFLW\RIWKHJDV  9J

 P  VHF  u 

 P  VHF  u 

 P  VHF

 P  VHF

§  Z$ · K   H[S ¨ ¸ © 4V ¹

(IILFLHQF\ 

/

§  Z$ · K   H[S ¨ ¸ © 4V ¹

§ Z/u·   H[S ¨ ¸ ¨ ¸ © 4J ¹

§ Z/u·   H[S ¨ ¸ ¨ ¸ © 4J ¹

§  Z/ · § · P  V u /   H[S ¨ ¸   H[S ¨  ¸ ¨ YJ u +6 ¸ ©  P  V u  u  ¹ © ¹

§  Z/ · § · P  V u /   H[S ¨ ¸   H[S ¨  ¸ ¨ YJ u +6 ¸ ©  P  V u  u  ¹ © ¹

 ±H[S±/ +HQFH

4 +J6

 ±H[S±/

P

+HQFH

DQGIRUHIILFLHQF\

/

P

DQGIRUHIILFLHQF\

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV

 P  V

 P  V

7RDFKLHYHHIILFLHQF\WKHDUHDUHTXLUHGLV

7RDFKLHYHHIILFLHQF\WKHDUHDUHTXLUHGLV

$

 P  V OQ    P  V

$

 P  V OQ    P  V

$

 P 

$

 P 



([DPSOH

([DPSOH

$ FHPHQW SODQW KDV D  FKDQQHO (63 WR KDQGOH  PK RI IOXH JDV 7KH YHORFLW\RIWKHSDUWLFOH Q U LVPVHFDQGSODWHKHLJKWLVPZLWKDVSDFLQJRI P'HWHUPLQHWKHSODWHOHQJWKWRREWDLQDQGFROOHFWLRQHIILFLHQF\

$ FHPHQW SODQW KDV D  FKDQQHO (63 WR KDQGOH  PK RI IOXH JDV 7KH YHORFLW\RIWKHSDUWLFOH Q U LVPVHFDQGSODWHKHLJKWLVPZLWKDVSDFLQJRI P'HWHUPLQHWKHSODWHOHQJWKWRREWDLQDQGFROOHFWLRQHIILFLHQF\

6ROXWLRQ

6ROXWLRQ

*DVIRZUDWH PKRXU  PVHF 7KHWRWDOQXPEHURIFKDQQHOVLVDQGWKHWRWDOQXPEHURISODWHVLV 

*DVIRZUDWH PKRXU  PVHF 7KHWRWDOQXPEHURIFKDQQHOVLVDQGWKHWRWDOQXPEHURISODWHVLV 

*DVIORZUDWHSHUFKDQQHO PVHF

*DVIORZUDWHSHUFKDQQHO PVHF

$UHDRIWKHFROOHFWLQJHOHFWURGHFKDQQHO î/P

$UHDRIWKHFROOHFWLQJHOHFWURGHFKDQQHO î/P

9HORFLW\RIWKHJDV  9J

(IILFLHQF\ 

4 +J6

9HORFLW\RIWKHJDV  9J

 P  VHF  u 

 P  VHF  u 

 P  VHF

 P  VHF

§  Z$ · K   H[S ¨ ¸ © 4V ¹

(IILFLHQF\ 

/

DQGIRUHIILFLHQF\

§  Z$ · K   H[S ¨ ¸ © 4V ¹

§ Z/u·   H[S ¨ ¸ ¨ ¸ © 4J ¹

§ Z/u·   H[S ¨ ¸ ¨ ¸ © 4J ¹

§  Z/ · § · P  V u /   H[S ¨ ¸   H[S ¨  ¸ ¨ YJ u +6 ¸ ©  P  V u  u  ¹ © ¹

§  Z/ · § · P  V u /   H[S ¨ ¸   H[S ¨  ¸ ¨ YJ u +6 ¸ ©  P  V u  u  ¹ © ¹

 ±H[S±/ +HQFH

4 +J6

P

 ±H[S±/ +HQFH

/

DQGIRUHIILFLHQF\

P

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV  +HQFH/

±H[S±/ P

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV  +HQFH/

±H[S±/ P

)DFWRUV$IIHFWLQJ&ROOHFWLRQ(IILFLHQF\

)DFWRUV$IIHFWLQJ&ROOHFWLRQ(IILFLHQF\

$'XVW$FFXPXODWLRQ 7R PDLQWDLQ JRRG FROOHFWLRQ HIILFLHQF\ WKH DFFXPXODWHG GXVW RQ WKH FROOHFWRU HOHFWURGHPXVWEHUHPRYHGSHULRGLFDOO\+HDY\GXVWORDGDVHQFRXQWHUHGLQLQGXVWULDO HTXLSPHQWQHFHVVLWDWHVIUHTXHQWFOHDQLQJRSHUDWLRQV(YHQWKRXJKZDWHUZDVKLQJ LV LGHDO LW LV QRW IDYRXUHG IRU SUDFWLFDO UHDVRQV (OHFWURGH UDSSLQJ LV WKH PRVW FRPPRQWHFKQLTXHRIFOHDQLQJ5DSSLQJLVQRWKLQJEXWKLWWLQJWKHHOHFWURGHZLWKD KDPPHU8VXDOO\VHYHUDOFROOHFWRUSODWHVDUHWLHGWRJHWKHUWKURXJKDUDSSLQJEDU SDVVLQJWKURXJKWKHP7KHEDULVVWUXFNSHULRGLFDOO\WRORRVHQWKHGXVWSDUWLFOHV )UHTXHQWJHQWOHUDSSLQJFDQEHDXWRPDWHGXVLQJDSQHXPDWLFDOO\DFWXDWHGVSULQJ ORDGHGKDPPHURUE\DPRWRUGULYHQFDP5DSSLQJRQFHHYHU\PLQXWHLVTXLWH VXIILFLHQWIRUPRVWRIWKHLQGXVWULDOXQLWV

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

% 5HHQWUDLQPHQW 'U\SDUWLFOHVGHSRVLWHGRQWKHFROOHFWRUFDQHQWHUWKHPRYLQJJDVE\ORVLQJWKHLU QHJDWLYHFKDUJHRUE\DFTXLULQJDSRVLWLYHFKDUJHRQWKHHOHFWURGH&RDOIO\DVK DQGFDUERQEODFNSDUWLFOHVH[KLELWWKLVWHQGHQF\*DVIORZWKURXJKWKHKRSSHULV DQRWKHULPSRUWDQWFDXVHIRUUHHQWUDLQPHQW7KLVSUREOHPFDQEHPLQLPL]HGE\ XVLQJDQXPEHURIEDIIOHSODWHVWRUHGXFHWKHJDVIORZ7\SLFDOO\IWVHFRI JDVIORZFDXVHVUHHQWUDLQPHQW

% 5HHQWUDLQPHQW 'U\SDUWLFOHVGHSRVLWHGRQWKHFROOHFWRUFDQHQWHUWKHPRYLQJJDVE\ORVLQJWKHLU QHJDWLYHFKDUJHRUE\DFTXLULQJDSRVLWLYHFKDUJHRQWKHHOHFWURGH&RDOIO\DVK DQGFDUERQEODFNSDUWLFOHVH[KLELWWKLVWHQGHQF\*DVIORZWKURXJKWKHKRSSHULV DQRWKHULPSRUWDQWFDXVHIRUUHHQWUDLQPHQW7KLVSUREOHPFDQEHPLQLPL]HGE\ XVLQJDQXPEHURIEDIIOHSODWHVWRUHGXFHWKHJDVIORZ7\SLFDOO\IWVHFRI JDVIORZFDXVHVUHHQWUDLQPHQW

& 5HVLVWLYLW\ 7KHUHVLVWLYLW\RIWKHGXVWOD\HUUDQJHVIURP±WR±RKPFPIRUDYDULHW\RI SDUWLFOHV:KHQWKHUHVLVWLYLW\H[FHHGV±[RKPFPWKHGXVWOD\HULVH[SRVHG WRDODUJHQXPEHURIQHJDWLYHLRQVDQGGXVWSDUWLFOHV7KLVDFFXPXODWHGFKDUJH PXVWEHGLVVLSDWHGE\SDVVLQJWKHFXUUHQWIORZWKURXJKWKHGXVWOD\HU2WKHUZLVH DSKHQRPHQRQNQRZQDVµEDFNFRURQD¶GHYHORSVFDXVLQJGUDVWLFUHGXFWLRQLQWKH FROOHFWLRQHIILFLHQF\ 'XVWUHVLVWLYLW\LVDPHDVXUHRIWKHUHVLVWDQFHRIWKHGXVWOD\HUWRWKHSDVVDJH RIDFXUUHQW,WGHSHQGVXSRQWKHFRPSRVLWLRQRIWKHGXVWFRQWLQXLW\RIWKHOD\HU (63RSHUDWLQJWHPSHUDWXUHDQGWKHYROWDJHJUDGLHQWDFURVVWKHGXVWOD\HU$WKLJK UHVLVWLYLWLHVSDUWLFOHVDUHWRRGLIILFXOWWRFKDUJH7KLVOHDGVWRDGHFUHDVHLQHIILFLHQF\ $JDLQLIWKHUHVLVWLYLW\LVWRRORZ±RKPFP WKHSDUWLFOHVDFFHSWDFKDUJH HDVLO\EXWDOVRGLVVLSDWHLWTXLFNO\DQGUHVWUDLQLQWRWKHJDVVWUHDP 7KHUHVLVLWLYLW\RIWKHGXVWFDQEHUHGXFHGE\LQWURGXFLQJZDWHURUVWHDPLQWR WKH JDV EHIRUH LW LV LQWURGXFHG LQ WKH HOHFWURVWDWLF SUHFLSLWDWRU :DWHU RU VWHDP IRUPVDWKLQOLTXLGILOPRQWKHGXVWSDUWLFOHVWKDWDLGVLQLPSURYLQJHOHFWURO\WLF FRQGLWLRQV$FLGLFGXVWVQRWFDSDEOHRIDEVRUELQJPRLVWXUHDUHFKHPLFDOO\FRQGLWLRQHG

& 5HVLVWLYLW\ 7KHUHVLVWLYLW\RIWKHGXVWOD\HUUDQJHVIURP±WR±RKPFPIRUDYDULHW\RI SDUWLFOHV:KHQWKHUHVLVWLYLW\H[FHHGV±[RKPFPWKHGXVWOD\HULVH[SRVHG WRDODUJHQXPEHURIQHJDWLYHLRQVDQGGXVWSDUWLFOHV7KLVDFFXPXODWHGFKDUJH PXVWEHGLVVLSDWHGE\SDVVLQJWKHFXUUHQWIORZWKURXJKWKHGXVWOD\HU2WKHUZLVH DSKHQRPHQRQNQRZQDVµEDFNFRURQD¶GHYHORSVFDXVLQJGUDVWLFUHGXFWLRQLQWKH FROOHFWLRQHIILFLHQF\ 'XVWUHVLVWLYLW\LVDPHDVXUHRIWKHUHVLVWDQFHRIWKHGXVWOD\HUWRWKHSDVVDJH RIDFXUUHQW,WGHSHQGVXSRQWKHFRPSRVLWLRQRIWKHGXVWFRQWLQXLW\RIWKHOD\HU (63RSHUDWLQJWHPSHUDWXUHDQGWKHYROWDJHJUDGLHQWDFURVVWKHGXVWOD\HU$WKLJK UHVLVWLYLWLHVSDUWLFOHVDUHWRRGLIILFXOWWRFKDUJH7KLVOHDGVWRDGHFUHDVHLQHIILFLHQF\ $JDLQLIWKHUHVLVWLYLW\LVWRRORZ±RKPFP WKHSDUWLFOHVDFFHSWDFKDUJH HDVLO\EXWDOVRGLVVLSDWHLWTXLFNO\DQGUHVWUDLQLQWRWKHJDVVWUHDP 7KHUHVLVLWLYLW\RIWKHGXVWFDQEHUHGXFHGE\LQWURGXFLQJZDWHURUVWHDPLQWR WKH JDV EHIRUH LW LV LQWURGXFHG LQ WKH HOHFWURVWDWLF SUHFLSLWDWRU :DWHU RU VWHDP IRUPVDWKLQOLTXLGILOPRQWKHGXVWSDUWLFOHVWKDWDLGVLQLPSURYLQJHOHFWURO\WLF FRQGLWLRQV$FLGLFGXVWVQRWFDSDEOHRIDEVRUELQJPRLVWXUHDUHFKHPLFDOO\FRQGLWLRQHG

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 +HQFH/

±H[S±/ P

 +HQFH/

±H[S±/ P

)DFWRUV$IIHFWLQJ&ROOHFWLRQ(IILFLHQF\

)DFWRUV$IIHFWLQJ&ROOHFWLRQ(IILFLHQF\

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

% 5HHQWUDLQPHQW 'U\SDUWLFOHVGHSRVLWHGRQWKHFROOHFWRUFDQHQWHUWKHPRYLQJJDVE\ORVLQJWKHLU QHJDWLYHFKDUJHRUE\DFTXLULQJDSRVLWLYHFKDUJHRQWKHHOHFWURGH&RDOIO\DVK DQGFDUERQEODFNSDUWLFOHVH[KLELWWKLVWHQGHQF\*DVIORZWKURXJKWKHKRSSHULV DQRWKHULPSRUWDQWFDXVHIRUUHHQWUDLQPHQW7KLVSUREOHPFDQEHPLQLPL]HGE\ XVLQJDQXPEHURIEDIIOHSODWHVWRUHGXFHWKHJDVIORZ7\SLFDOO\IWVHFRI JDVIORZFDXVHVUHHQWUDLQPHQW

% 5HHQWUDLQPHQW 'U\SDUWLFOHVGHSRVLWHGRQWKHFROOHFWRUFDQHQWHUWKHPRYLQJJDVE\ORVLQJWKHLU QHJDWLYHFKDUJHRUE\DFTXLULQJDSRVLWLYHFKDUJHRQWKHHOHFWURGH&RDOIO\DVK DQGFDUERQEODFNSDUWLFOHVH[KLELWWKLVWHQGHQF\*DVIORZWKURXJKWKHKRSSHULV DQRWKHULPSRUWDQWFDXVHIRUUHHQWUDLQPHQW7KLVSUREOHPFDQEHPLQLPL]HGE\ XVLQJDQXPEHURIEDIIOHSODWHVWRUHGXFHWKHJDVIORZ7\SLFDOO\IWVHFRI JDVIORZFDXVHVUHHQWUDLQPHQW

& 5HVLVWLYLW\ 7KHUHVLVWLYLW\RIWKHGXVWOD\HUUDQJHVIURP±WR±RKPFPIRUDYDULHW\RI SDUWLFOHV:KHQWKHUHVLVWLYLW\H[FHHGV±[RKPFPWKHGXVWOD\HULVH[SRVHG WRDODUJHQXPEHURIQHJDWLYHLRQVDQGGXVWSDUWLFOHV7KLVDFFXPXODWHGFKDUJH PXVWEHGLVVLSDWHGE\SDVVLQJWKHFXUUHQWIORZWKURXJKWKHGXVWOD\HU2WKHUZLVH DSKHQRPHQRQNQRZQDVµEDFNFRURQD¶GHYHORSVFDXVLQJGUDVWLFUHGXFWLRQLQWKH FROOHFWLRQHIILFLHQF\ 'XVWUHVLVWLYLW\LVDPHDVXUHRIWKHUHVLVWDQFHRIWKHGXVWOD\HUWRWKHSDVVDJH RIDFXUUHQW,WGHSHQGVXSRQWKHFRPSRVLWLRQRIWKHGXVWFRQWLQXLW\RIWKHOD\HU (63RSHUDWLQJWHPSHUDWXUHDQGWKHYROWDJHJUDGLHQWDFURVVWKHGXVWOD\HU$WKLJK UHVLVWLYLWLHVSDUWLFOHVDUHWRRGLIILFXOWWRFKDUJH7KLVOHDGVWRDGHFUHDVHLQHIILFLHQF\ $JDLQLIWKHUHVLVWLYLW\LVWRRORZ±RKPFP WKHSDUWLFOHVDFFHSWDFKDUJH HDVLO\EXWDOVRGLVVLSDWHLWTXLFNO\DQGUHVWUDLQLQWRWKHJDVVWUHDP 7KHUHVLVLWLYLW\RIWKHGXVWFDQEHUHGXFHGE\LQWURGXFLQJZDWHURUVWHDPLQWR WKH JDV EHIRUH LW LV LQWURGXFHG LQ WKH HOHFWURVWDWLF SUHFLSLWDWRU :DWHU RU VWHDP IRUPVDWKLQOLTXLGILOPRQWKHGXVWSDUWLFOHVWKDWDLGVLQLPSURYLQJHOHFWURO\WLF FRQGLWLRQV$FLGLFGXVWVQRWFDSDEOHRIDEVRUELQJPRLVWXUHDUHFKHPLFDOO\FRQGLWLRQHG

& 5HVLVWLYLW\ 7KHUHVLVWLYLW\RIWKHGXVWOD\HUUDQJHVIURP±WR±RKPFPIRUDYDULHW\RI SDUWLFOHV:KHQWKHUHVLVWLYLW\H[FHHGV±[RKPFPWKHGXVWOD\HULVH[SRVHG WRDODUJHQXPEHURIQHJDWLYHLRQVDQGGXVWSDUWLFOHV7KLVDFFXPXODWHGFKDUJH PXVWEHGLVVLSDWHGE\SDVVLQJWKHFXUUHQWIORZWKURXJKWKHGXVWOD\HU2WKHUZLVH DSKHQRPHQRQNQRZQDVµEDFNFRURQD¶GHYHORSVFDXVLQJGUDVWLFUHGXFWLRQLQWKH FROOHFWLRQHIILFLHQF\ 'XVWUHVLVWLYLW\LVDPHDVXUHRIWKHUHVLVWDQFHRIWKHGXVWOD\HUWRWKHSDVVDJH RIDFXUUHQW,WGHSHQGVXSRQWKHFRPSRVLWLRQRIWKHGXVWFRQWLQXLW\RIWKHOD\HU (63RSHUDWLQJWHPSHUDWXUHDQGWKHYROWDJHJUDGLHQWDFURVVWKHGXVWOD\HU$WKLJK UHVLVWLYLWLHVSDUWLFOHVDUHWRRGLIILFXOWWRFKDUJH7KLVOHDGVWRDGHFUHDVHLQHIILFLHQF\ $JDLQLIWKHUHVLVWLYLW\LVWRRORZ±RKPFP WKHSDUWLFOHVDFFHSWDFKDUJH HDVLO\EXWDOVRGLVVLSDWHLWTXLFNO\DQGUHVWUDLQLQWRWKHJDVVWUHDP 7KHUHVLVLWLYLW\RIWKHGXVWFDQEHUHGXFHGE\LQWURGXFLQJZDWHURUVWHDPLQWR WKH JDV EHIRUH LW LV LQWURGXFHG LQ WKH HOHFWURVWDWLF SUHFLSLWDWRU :DWHU RU VWHDP IRUPVDWKLQOLTXLGILOPRQWKHGXVWSDUWLFOHVWKDWDLGVLQLPSURYLQJHOHFWURO\WLF FRQGLWLRQV$FLGLFGXVWVQRWFDSDEOHRIDEVRUELQJPRLVWXUHDUHFKHPLFDOO\FRQGLWLRQHG

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV



E\LQWURGXFLQJVXOSKLWH62 %DVLFGXVWVDUHFRQGLWLRQHGE\DGGLQJDPPRQLD 9HU\VPDOOTXDQWLWLHVRIFKHPLFDOFRQGLWLRQHUVDUHUHTXLUHGIRUSUDFWLFDODSSOLFDWLRQV

E\LQWURGXFLQJVXOSKLWH62 %DVLFGXVWVDUHFRQGLWLRQHGE\DGGLQJDPPRQLD 9HU\VPDOOTXDQWLWLHVRIFKHPLFDOFRQGLWLRQHUVDUHUHTXLUHGIRUSUDFWLFDODSSOLFDWLRQV

'3UHVVXUH'URS 6LQFHDQXPEHURIGLVFKDUJHHOHFWURGHVDQGFROOHFWRUHOHFWURGHVDUHHPSOR\HGLQ HOHFWURVWDWLFSUHFLSLWDWRUVLWLVHVVHQWLDOWRPDLQWDLQXQLIRUPGLVWULEXWLRQRIWKHJDV DQG GXVW WR REWDLQ RSWLPXP FROOHFWLRQ HIILFLHQF\ 7KHUHIRUH LW LV LPSRUWDQW WR PLQLPL]HWKHOHQJWKDQGQXPEHURIEHQGVLQWKHGXFWWKURXJKZKLFKWKHGXVWODGHQ JDVSDVVHV7RVPRRWKRXWWKHIORZGLVWRUWLRQJDVLVLQWURGXFHGWKURXJKSHUIRUDWHG SODWHV8VHRIWXUQLQJYDQHVLQWKHGXFWEHQGVLVDOVRTXLWHFRPPRQDVWKH\VPRRWK RXWWKHIORZSDWWHUQ

'3UHVVXUH'URS 6LQFHDQXPEHURIGLVFKDUJHHOHFWURGHVDQGFROOHFWRUHOHFWURGHVDUHHPSOR\HGLQ HOHFWURVWDWLFSUHFLSLWDWRUVLWLVHVVHQWLDOWRPDLQWDLQXQLIRUPGLVWULEXWLRQRIWKHJDV DQG GXVW WR REWDLQ RSWLPXP FROOHFWLRQ HIILFLHQF\ 7KHUHIRUH LW LV LPSRUWDQW WR PLQLPL]HWKHOHQJWKDQGQXPEHURIEHQGVLQWKHGXFWWKURXJKZKLFKWKHGXVWODGHQ JDVSDVVHV7RVPRRWKRXWWKHIORZGLVWRUWLRQJDVLVLQWURGXFHGWKURXJKSHUIRUDWHG SODWHV8VHRIWXUQLQJYDQHVLQWKHGXFWEHQGVLVDOVRTXLWHFRPPRQDVWKH\VPRRWK RXWWKHIORZSDWWHUQ

 ,QGXVWULDO (OHFWURVWDWLF 3UHFLSLWDWRUV

 ,QGXVWULDO (OHFWURVWDWLF 3UHFLSLWDWRUV

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

Discharge electrode

Discharge electrode

Collecting electrode

Collecting electrode

Power supply

Power supply Insulators

Dirty gas

Discharge electrodes

Insulators

Dirty gas

Cleaned gas

Discharge electrodes

Weights

Cleaned gas

Weights

Dust hopper

Dust hopper

)LJ3DUDOOHOSODWHVLQJOHVWDJHHOHFWURVWDWLFSUHFLSLWDWRU

)LJ3DUDOOHOSODWHVLQJOHVWDJHHOHFWURVWDWLFSUHFLSLWDWRU

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV



E\LQWURGXFLQJVXOSKLWH62 %DVLFGXVWVDUHFRQGLWLRQHGE\DGGLQJDPPRQLD 9HU\VPDOOTXDQWLWLHVRIFKHPLFDOFRQGLWLRQHUVDUHUHTXLUHGIRUSUDFWLFDODSSOLFDWLRQV

E\LQWURGXFLQJVXOSKLWH62 %DVLFGXVWVDUHFRQGLWLRQHGE\DGGLQJDPPRQLD 9HU\VPDOOTXDQWLWLHVRIFKHPLFDOFRQGLWLRQHUVDUHUHTXLUHGIRUSUDFWLFDODSSOLFDWLRQV

'3UHVVXUH'URS 6LQFHDQXPEHURIGLVFKDUJHHOHFWURGHVDQGFROOHFWRUHOHFWURGHVDUHHPSOR\HGLQ HOHFWURVWDWLFSUHFLSLWDWRUVLWLVHVVHQWLDOWRPDLQWDLQXQLIRUPGLVWULEXWLRQRIWKHJDV DQG GXVW WR REWDLQ RSWLPXP FROOHFWLRQ HIILFLHQF\ 7KHUHIRUH LW LV LPSRUWDQW WR PLQLPL]HWKHOHQJWKDQGQXPEHURIEHQGVLQWKHGXFWWKURXJKZKLFKWKHGXVWODGHQ JDVSDVVHV7RVPRRWKRXWWKHIORZGLVWRUWLRQJDVLVLQWURGXFHGWKURXJKSHUIRUDWHG SODWHV8VHRIWXUQLQJYDQHVLQWKHGXFWEHQGVLVDOVRTXLWHFRPPRQDVWKH\VPRRWK RXWWKHIORZSDWWHUQ

'3UHVVXUH'URS 6LQFHDQXPEHURIGLVFKDUJHHOHFWURGHVDQGFROOHFWRUHOHFWURGHVDUHHPSOR\HGLQ HOHFWURVWDWLFSUHFLSLWDWRUVLWLVHVVHQWLDOWRPDLQWDLQXQLIRUPGLVWULEXWLRQRIWKHJDV DQG GXVW WR REWDLQ RSWLPXP FROOHFWLRQ HIILFLHQF\ 7KHUHIRUH LW LV LPSRUWDQW WR PLQLPL]HWKHOHQJWKDQGQXPEHURIEHQGVLQWKHGXFWWKURXJKZKLFKWKHGXVWODGHQ JDVSDVVHV7RVPRRWKRXWWKHIORZGLVWRUWLRQJDVLVLQWURGXFHGWKURXJKSHUIRUDWHG SODWHV8VHRIWXUQLQJYDQHVLQWKHGXFWEHQGVLVDOVRTXLWHFRPPRQDVWKH\VPRRWK RXWWKHIORZSDWWHUQ

 ,QGXVWULDO (OHFWURVWDWLF 3UHFLSLWDWRUV

 ,QGXVWULDO (OHFWURVWDWLF 3UHFLSLWDWRUV

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

Discharge electrode

Discharge electrode

Collecting electrode

Collecting electrode

Power supply

Power supply Insulators

Dirty gas

Discharge electrodes

Insulators

Cleaned gas

Weights

Dust hopper

)LJ3DUDOOHOSODWHVLQJOHVWDJHHOHFWURVWDWLFSUHFLSLWDWRU

Dirty gas

Discharge electrodes

Cleaned gas

Weights

Dust hopper

)LJ3DUDOOHOSODWHVLQJOHVWDJHHOHFWURVWDWLFSUHFLSLWDWRU

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Power supply Cleaned gas

Power supply Cleaned gas

Insulator

Collecting field electrode

Collecting field electrode

Corona charging electrode

Collector electrode

Corona charging electrode

Dirty gas

)LJ  &\OLQGULFDO WZRVWDJH HOHFWURVWDWLF SUHFLSLWDWRU

D E F G

Insulator

Collector electrode

Dirty gas

)LJ  &\OLQGULFDO WZRVWDJH HOHFWURVWDWLF SUHFLSLWDWRU

3RZHUVXSSO\ 'LVFKDUJHDQGFROOHFWRUHOHFWURGHDVVHPEO\ 'XVWFROOHFWLRQXQLW 2XWHUFDVLQJ

D E F G

3RZHUVXSSO\ 'LVFKDUJHDQGFROOHFWRUHOHFWURGHDVVHPEO\ 'XVWFROOHFWLRQXQLW 2XWHUFDVLQJ

D 3RZHUVXSSO\7\SLFDORSHUDWLQJHOHFWURGHYROWDJHVDUHDURXQG97KH $&SRZHUVXSSO\LVFRQYHUWHGLQWRKLJKYROWDJHDQGUHFWLILHGWRDKDOIZDYHUHFWLILHG FXUUHQW$XWRPDWLFYROWDJHFRQWUROLVLPSRUWDQWWRPDLQWDLQPD[LPXPFROOHFWLRQ HIILFLHQF\6SDUNLQJUDWHPXVWEHKLJKIRUJRRGSHUIRUPDQFH

D 3RZHUVXSSO\7\SLFDORSHUDWLQJHOHFWURGHYROWDJHVDUHDURXQG97KH $&SRZHUVXSSO\LVFRQYHUWHGLQWRKLJKYROWDJHDQGUHFWLILHGWRDKDOIZDYHUHFWLILHG FXUUHQW$XWRPDWLFYROWDJHFRQWUROLVLPSRUWDQWWRPDLQWDLQPD[LPXPFROOHFWLRQ HIILFLHQF\6SDUNLQJUDWHPXVWEHKLJKIRUJRRGSHUIRUPDQFH

E (OHFWURGHDVVHPEO\7ZRW\SHVRIHOHFWURGHGHVLJQVDUHFRPPRQO\XVHGLQWKH VLQJOHVWDJH SUHFLSLWDWRUV SLSH W\SH DQG SODWH W\SH 3LSH GHVLJQV DUH RI ± P OHQJWKLQURXQGVTXDUHRURFWDJRQDOVKDSHV7KHHOHFWURGHVDUHVSDFHG±FP DSDUW7KHFROOHFWRUHOHFWURGHVPXVWEHVWURQJHQRXJKWRZLWKVWDQGUDSSLQJ

E (OHFWURGHDVVHPEO\7ZRW\SHVRIHOHFWURGHGHVLJQVDUHFRPPRQO\XVHGLQWKH VLQJOHVWDJH SUHFLSLWDWRUV SLSH W\SH DQG SODWH W\SH 3LSH GHVLJQV DUH RI ± P OHQJWKLQURXQGVTXDUHRURFWDJRQDOVKDSHV7KHHOHFWURGHVDUHVSDFHG±FP DSDUW7KHFROOHFWRUHOHFWURGHVPXVWEHVWURQJHQRXJKWRZLWKVWDQGUDSSLQJ

F 'XVWFROOHFWLRQXQLW'XVWKRSSHUVDUHLQWHJUDOWRWKHHOHFWURVWDWLFSUHFLSLWDWRU V\VWHPV7KH\DUHPDGHRIWKHVDPHPDWHULDODVWKDWRIRXWHUFDVLQJ8VXDOO\GXVW LVFROOHFWHGLQVWURQJFDQYDVEDJVDQGGLVSRVHGRILQDQDSSURSULDWHPDQQHU

F 'XVWFROOHFWLRQXQLW'XVWKRSSHUVDUHLQWHJUDOWRWKHHOHFWURVWDWLFSUHFLSLWDWRU V\VWHPV7KH\DUHPDGHRIWKHVDPHPDWHULDODVWKDWRIRXWHUFDVLQJ8VXDOO\GXVW LVFROOHFWHGLQVWURQJFDQYDVEDJVDQGGLVSRVHGRILQDQDSSURSULDWHPDQQHU

G 2XWHUFDVLQJ0LOGVWHHORXWHUFDVLQJLVTXLWHFRPPRQDQGHFRQRPLFDOWRR 7KHFDVLQJVKRXOGEHVWURQJHQRXJKWRZLWKVWDQGKLJKYROWDJHV,WPXVWDOVREH JURXQGHGSURSHUO\(OHFWURVWDWLFSUHFLSLWDWRUVDUHTXLWHEXON\DQGQRQWUDQVSRUWDEOH 7KHUHIRUH LW PXVW EH IL[HG WR WKH JURXQG ZLWK DSSURSULDWH EULFN DQG PDVRQU\ ZRUN

G 2XWHUFDVLQJ0LOGVWHHORXWHUFDVLQJLVTXLWHFRPPRQDQGHFRQRPLFDOWRR 7KHFDVLQJVKRXOGEHVWURQJHQRXJKWRZLWKVWDQGKLJKYROWDJHV,WPXVWDOVREH JURXQGHGSURSHUO\(OHFWURVWDWLFSUHFLSLWDWRUVDUHTXLWHEXON\DQGQRQWUDQVSRUWDEOH 7KHUHIRUH LW PXVW EH IL[HG WR WKH JURXQG ZLWK DSSURSULDWH EULFN DQG PDVRQU\ ZRUN

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Power supply Cleaned gas

Power supply Cleaned gas

Insulator

Collecting field electrode

Collecting field electrode

Corona charging electrode

Collector electrode

Corona charging electrode

Dirty gas

)LJ  &\OLQGULFDO WZRVWDJH HOHFWURVWDWLF SUHFLSLWDWRU

D E F G

Insulator

3RZHUVXSSO\ 'LVFKDUJHDQGFROOHFWRUHOHFWURGHDVVHPEO\ 'XVWFROOHFWLRQXQLW 2XWHUFDVLQJ

Collector electrode

Dirty gas

)LJ  &\OLQGULFDO WZRVWDJH HOHFWURVWDWLF SUHFLSLWDWRU

D E F G

3RZHUVXSSO\ 'LVFKDUJHDQGFROOHFWRUHOHFWURGHDVVHPEO\ 'XVWFROOHFWLRQXQLW 2XWHUFDVLQJ

D 3RZHUVXSSO\7\SLFDORSHUDWLQJHOHFWURGHYROWDJHVDUHDURXQG97KH $&SRZHUVXSSO\LVFRQYHUWHGLQWRKLJKYROWDJHDQGUHFWLILHGWRDKDOIZDYHUHFWLILHG FXUUHQW$XWRPDWLFYROWDJHFRQWUROLVLPSRUWDQWWRPDLQWDLQPD[LPXPFROOHFWLRQ HIILFLHQF\6SDUNLQJUDWHPXVWEHKLJKIRUJRRGSHUIRUPDQFH

D 3RZHUVXSSO\7\SLFDORSHUDWLQJHOHFWURGHYROWDJHVDUHDURXQG97KH $&SRZHUVXSSO\LVFRQYHUWHGLQWRKLJKYROWDJHDQGUHFWLILHGWRDKDOIZDYHUHFWLILHG FXUUHQW$XWRPDWLFYROWDJHFRQWUROLVLPSRUWDQWWRPDLQWDLQPD[LPXPFROOHFWLRQ HIILFLHQF\6SDUNLQJUDWHPXVWEHKLJKIRUJRRGSHUIRUPDQFH

E (OHFWURGHDVVHPEO\7ZRW\SHVRIHOHFWURGHGHVLJQVDUHFRPPRQO\XVHGLQWKH VLQJOHVWDJH SUHFLSLWDWRUV SLSH W\SH DQG SODWH W\SH 3LSH GHVLJQV DUH RI ± P OHQJWKLQURXQGVTXDUHRURFWDJRQDOVKDSHV7KHHOHFWURGHVDUHVSDFHG±FP DSDUW7KHFROOHFWRUHOHFWURGHVPXVWEHVWURQJHQRXJKWRZLWKVWDQGUDSSLQJ

E (OHFWURGHDVVHPEO\7ZRW\SHVRIHOHFWURGHGHVLJQVDUHFRPPRQO\XVHGLQWKH VLQJOHVWDJH SUHFLSLWDWRUV SLSH W\SH DQG SODWH W\SH 3LSH GHVLJQV DUH RI ± P OHQJWKLQURXQGVTXDUHRURFWDJRQDOVKDSHV7KHHOHFWURGHVDUHVSDFHG±FP DSDUW7KHFROOHFWRUHOHFWURGHVPXVWEHVWURQJHQRXJKWRZLWKVWDQGUDSSLQJ

F 'XVWFROOHFWLRQXQLW'XVWKRSSHUVDUHLQWHJUDOWRWKHHOHFWURVWDWLFSUHFLSLWDWRU V\VWHPV7KH\DUHPDGHRIWKHVDPHPDWHULDODVWKDWRIRXWHUFDVLQJ8VXDOO\GXVW LVFROOHFWHGLQVWURQJFDQYDVEDJVDQGGLVSRVHGRILQDQDSSURSULDWHPDQQHU

F 'XVWFROOHFWLRQXQLW'XVWKRSSHUVDUHLQWHJUDOWRWKHHOHFWURVWDWLFSUHFLSLWDWRU V\VWHPV7KH\DUHPDGHRIWKHVDPHPDWHULDODVWKDWRIRXWHUFDVLQJ8VXDOO\GXVW LVFROOHFWHGLQVWURQJFDQYDVEDJVDQGGLVSRVHGRILQDQDSSURSULDWHPDQQHU

G 2XWHUFDVLQJ0LOGVWHHORXWHUFDVLQJLVTXLWHFRPPRQDQGHFRQRPLFDOWRR 7KHFDVLQJVKRXOGEHVWURQJHQRXJKWRZLWKVWDQGKLJKYROWDJHV,WPXVWDOVREH JURXQGHGSURSHUO\(OHFWURVWDWLFSUHFLSLWDWRUVDUHTXLWHEXON\DQGQRQWUDQVSRUWDEOH 7KHUHIRUH LW PXVW EH IL[HG WR WKH JURXQG ZLWK DSSURSULDWH EULFN DQG PDVRQU\ ZRUN

G 2XWHUFDVLQJ0LOGVWHHORXWHUFDVLQJLVTXLWHFRPPRQDQGHFRQRPLFDOWRR 7KHFDVLQJVKRXOGEHVWURQJHQRXJKWRZLWKVWDQGKLJKYROWDJHV,WPXVWDOVREH JURXQGHGSURSHUO\(OHFWURVWDWLFSUHFLSLWDWRUVDUHTXLWHEXON\DQGQRQWUDQVSRUWDEOH 7KHUHIRUH LW PXVW EH IL[HG WR WKH JURXQG ZLWK DSSURSULDWH EULFN DQG PDVRQU\ ZRUN

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV



&\OLQGULFDO RU UHFWDQJXODU RU JHRPHWULF FRQILJXUDWLRQV RI HOHFWURVWDWLF SUHFLSLWDWRUV DUH SUHIHUUHG 3UHFLSLWDWRUV DUH IDEULFDWHG ZLWKJDV LQOHW DQG RXWOHW FRQQHFWLRQVDQGLQFOXGHRWKHUDX[LOLDU\FRPSRQHQWVVXFKDVDFFHVVGRRUVGDPSHUV UDSSHUV\VWHPVDQGJDVGLVWULEXWLRQV\VWHPV$JDVWLJKWSHQWKRXVHLVIL[HGRQWKH HOHFWURVWDWLFSUHFLSLWDWRUWRKRXVHKLJKYROWDJHLQVXODWRUV

&\OLQGULFDO RU UHFWDQJXODU RU JHRPHWULF FRQILJXUDWLRQV RI HOHFWURVWDWLF SUHFLSLWDWRUV DUH SUHIHUUHG 3UHFLSLWDWRUV DUH IDEULFDWHG ZLWKJDV LQOHW DQG RXWOHW FRQQHFWLRQVDQGLQFOXGHRWKHUDX[LOLDU\FRPSRQHQWVVXFKDVDFFHVVGRRUVGDPSHUV UDSSHUV\VWHPVDQGJDVGLVWULEXWLRQV\VWHPV$JDVWLJKWSHQWKRXVHLVIL[HGRQWKH HOHFWURVWDWLFSUHFLSLWDWRUWRKRXVHKLJKYROWDJHLQVXODWRUV

3LSH7\SH3UHFLSLWDWRU

3LSH7\SH3UHFLSLWDWRU

,QSLSHW\SHHOHFWURVWDWLFSUHFLSLWDWRUVWKHFROOHFWLQJHOHFWURGHVDUHLQWKHIRUPRI DQHVWRISDUDOOHOSLSHV7KHGLDPHWHURIHDFKSLSHLVDSSUR[LPDWHO\FP$WKLQ ZLUHVXVSHQGHGDWWKHFHQWUHRIWKHSLSHDQGFRQQHFWHGWRWKHSRZHUVXSSO\IURP WKHWRSVHUYHVDVWKHGLVFKDUJHHOHFWURGH,WLVHOHFWULFDOO\LQVXODWHGIURPWKHVXSSRUW JULG *HQHUDOO\ SLSH W\SH SUHFLSLWDWRUV DUH SUHIHUUHG IRU PRLVW JDVHV DQG OLTXLG DHURVROV

,QSLSHW\SHHOHFWURVWDWLFSUHFLSLWDWRUVWKHFROOHFWLQJHOHFWURGHVDUHLQWKHIRUPRI DQHVWRISDUDOOHOSLSHV7KHGLDPHWHURIHDFKSLSHLVDSSUR[LPDWHO\FP$WKLQ ZLUHVXVSHQGHGDWWKHFHQWUHRIWKHSLSHDQGFRQQHFWHGWRWKHSRZHUVXSSO\IURP WKHWRSVHUYHVDVWKHGLVFKDUJHHOHFWURGH,WLVHOHFWULFDOO\LQVXODWHGIURPWKHVXSSRUW JULG *HQHUDOO\ SLSH W\SH SUHFLSLWDWRUV DUH SUHIHUUHG IRU PRLVW JDVHV DQG OLTXLG DHURVROV

3ODWH7\SH3UHFLSLWDWRUV

3ODWH7\SH3UHFLSLWDWRUV

3ODWHW\SHSUHFLSLWDWRUVFRQVLVWRIDQXPEHURISDUDOOHOSODWHVRI±PZLGWKDQG ± P KHLJKW 7KH\ DUH VSDFHG ± FP DSDUW 7KH GLVFKDUJH HOHFWURGHV DUH XVXDOO\ VTXDUH RU WZLVWHG VTXDUH URGV RI  PP WKLFNQHVV %RWK YHUWLFDO DQG KRUL]RQWDOIORZW\SHHTXLSPHQWDUHDYDLODEOHLQWKHPDUNHW*DVYHORFLWLHVDUHRI WKHRUGHURI± PVHF)LJXUHVKRZVSODWHW\SHSUHFLSLWDWRUV (OHFWURVWDWLF SUHFLSLWDWRUV FDQ DOVR EH FODVVLILHG DV GU\ SUHFLSLWDWRUV RU ZHW V\VWHPVGHSHQGLQJXSRQWKHPRGHRIRSHUDWLRQ,QGU\SUHFLSLWDWRUVFOHDQLQJLV FDUULHG RXW E\ UDSSLQJ RU YLEUDWLRQ ,Q ZHW SUHFLSLWDWRUV ZDWHU RU RWKHU IOXLG LV HPSOR\HGIRUFOHDQLQJ(YHQWKRXJKZHWSUHFLSLWDWRUVDUHPRUHHIILFLHQWIRUGXVW UHPRYDOGU\SURFHVVSODWHW\SHSUHFLSLWDWRUVDUHWKHLQGXVWU\QRUPV

3ODWHW\SHSUHFLSLWDWRUVFRQVLVWRIDQXPEHURISDUDOOHOSODWHVRI±PZLGWKDQG ± P KHLJKW 7KH\ DUH VSDFHG ± FP DSDUW 7KH GLVFKDUJH HOHFWURGHV DUH XVXDOO\ VTXDUH RU WZLVWHG VTXDUH URGV RI  PP WKLFNQHVV %RWK YHUWLFDO DQG KRUL]RQWDOIORZW\SHHTXLSPHQWDUHDYDLODEOHLQWKHPDUNHW*DVYHORFLWLHVDUHRI WKHRUGHURI± PVHF)LJXUHVKRZVSODWHW\SHSUHFLSLWDWRUV (OHFWURVWDWLF SUHFLSLWDWRUV FDQ DOVR EH FODVVLILHG DV GU\ SUHFLSLWDWRUV RU ZHW V\VWHPVGHSHQGLQJXSRQWKHPRGHRIRSHUDWLRQ,QGU\SUHFLSLWDWRUVFOHDQLQJLV FDUULHG RXW E\ UDSSLQJ RU YLEUDWLRQ ,Q ZHW SUHFLSLWDWRUV ZDWHU RU RWKHU IOXLG LV HPSOR\HGIRUFOHDQLQJ(YHQWKRXJKZHWSUHFLSLWDWRUVDUHPRUHHIILFLHQWIRUGXVW UHPRYDOGU\SURFHVVSODWHW\SHSUHFLSLWDWRUVDUHWKHLQGXVWU\QRUPV

$GYDQWDJHVRI(OHFWURVWDWLF3UHFLSLWDWRUV

$GYDQWDJHVRI(OHFWURVWDWLF3UHFLSLWDWRUV

(OHFWURVWDWLF SUHFLSLWDWRUV SURYLGH KLJKHU WKDQ  FROOHFWLRQ HIILFLHQFLHV IRU SDUWLFOHVGRZQWR—VL]H2SHUDWLQJDQGPDLQWHQDQFHFRVWVDUHDOVRTXLWHORZ /RZSUHVVXUHGURSGXULQJWKHRSHUDWLRQSHUPLWVKDQGOLQJRIODUJHYROXPHRIKLJK WHPSHUDWXUHJDVDWDQHJOLJLEOHWLPHVFDOH3HULRGLFDOFOHDQLQJLVDOVRHDV\6ROLGV OLTXLG SDUWLFOHV DQG FRUURVLYH JDVHV FDQ EH HDVLO\ KDQGOHG LQ WKHVH XQLWV 6LQFH WKHUH DUH IHZ PRYLQJ SDUWV (63V FDQ EH RSHUDWHG DW KLJK WHPSHUDWXUHV DQG SUHVVXUHV7KHUHIRUHLWLVHFRQRPLFDODQGVLPSOHWRRSHUDWH

(OHFWURVWDWLF SUHFLSLWDWRUV SURYLGH KLJKHU WKDQ  FROOHFWLRQ HIILFLHQFLHV IRU SDUWLFOHVGRZQWR—VL]H2SHUDWLQJDQGPDLQWHQDQFHFRVWVDUHDOVRTXLWHORZ /RZSUHVVXUHGURSGXULQJWKHRSHUDWLRQSHUPLWVKDQGOLQJRIODUJHYROXPHRIKLJK WHPSHUDWXUHJDVDWDQHJOLJLEOHWLPHVFDOH3HULRGLFDOFOHDQLQJLVDOVRHDV\6ROLGV OLTXLG SDUWLFOHV DQG FRUURVLYH JDVHV FDQ EH HDVLO\ KDQGOHG LQ WKHVH XQLWV 6LQFH WKHUH DUH IHZ PRYLQJ SDUWV (63V FDQ EH RSHUDWHG DW KLJK WHPSHUDWXUHV DQG SUHVVXUHV7KHUHIRUHLWLVHFRQRPLFDODQGVLPSOHWRRSHUDWH

 'LVDGYDQWDJHV RI (OHFWURVWDWLF 3UHFLSLWDWRUV

 'LVDGYDQWDJHV RI (OHFWURVWDWLF 3UHFLSLWDWRUV

7KHPDLQGLVDGYDQWDJHVHOHFWURVWDWLFSUHFLSLWDWRUVDUHWKHLUKLJKLQLWLDOFRVWVDQG ODUJHVSDFHUHTXLUHPHQWV6LQFHYHU\KLJKYROWDJHVDUHUHTXLUHGIRUURXWLQHRSHUDWLRQ SURSHU VDIHW\ SUHFDXWLRQV PXVW EH LQVWDOOHG WR DYRLG H[SORVLRQ KD]DUGV GXULQJ FROOHFWLRQRIFRPEXVWLEOHSDUWLFXODWHV7KHVDIHW\SUHFDXWLRQVLQFOXGHSURSHUJDV

7KHPDLQGLVDGYDQWDJHVHOHFWURVWDWLFSUHFLSLWDWRUVDUHWKHLUKLJKLQLWLDOFRVWVDQG ODUJHVSDFHUHTXLUHPHQWV6LQFHYHU\KLJKYROWDJHVDUHUHTXLUHGIRUURXWLQHRSHUDWLRQ SURSHU VDIHW\ SUHFDXWLRQV PXVW EH LQVWDOOHG WR DYRLG H[SORVLRQ KD]DUGV GXULQJ FROOHFWLRQRIFRPEXVWLEOHSDUWLFXODWHV7KHVDIHW\SUHFDXWLRQVLQFOXGHSURSHUJDV

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV



&\OLQGULFDO RU UHFWDQJXODU RU JHRPHWULF FRQILJXUDWLRQV RI HOHFWURVWDWLF SUHFLSLWDWRUV DUH SUHIHUUHG 3UHFLSLWDWRUV DUH IDEULFDWHG ZLWKJDV LQOHW DQG RXWOHW FRQQHFWLRQVDQGLQFOXGHRWKHUDX[LOLDU\FRPSRQHQWVVXFKDVDFFHVVGRRUVGDPSHUV UDSSHUV\VWHPVDQGJDVGLVWULEXWLRQV\VWHPV$JDVWLJKWSHQWKRXVHLVIL[HGRQWKH HOHFWURVWDWLFSUHFLSLWDWRUWRKRXVHKLJKYROWDJHLQVXODWRUV

&\OLQGULFDO RU UHFWDQJXODU RU JHRPHWULF FRQILJXUDWLRQV RI HOHFWURVWDWLF SUHFLSLWDWRUV DUH SUHIHUUHG 3UHFLSLWDWRUV DUH IDEULFDWHG ZLWKJDV LQOHW DQG RXWOHW FRQQHFWLRQVDQGLQFOXGHRWKHUDX[LOLDU\FRPSRQHQWVVXFKDVDFFHVVGRRUVGDPSHUV UDSSHUV\VWHPVDQGJDVGLVWULEXWLRQV\VWHPV$JDVWLJKWSHQWKRXVHLVIL[HGRQWKH HOHFWURVWDWLFSUHFLSLWDWRUWRKRXVHKLJKYROWDJHLQVXODWRUV

3LSH7\SH3UHFLSLWDWRU

3LSH7\SH3UHFLSLWDWRU

,QSLSHW\SHHOHFWURVWDWLFSUHFLSLWDWRUVWKHFROOHFWLQJHOHFWURGHVDUHLQWKHIRUPRI DQHVWRISDUDOOHOSLSHV7KHGLDPHWHURIHDFKSLSHLVDSSUR[LPDWHO\FP$WKLQ ZLUHVXVSHQGHGDWWKHFHQWUHRIWKHSLSHDQGFRQQHFWHGWRWKHSRZHUVXSSO\IURP WKHWRSVHUYHVDVWKHGLVFKDUJHHOHFWURGH,WLVHOHFWULFDOO\LQVXODWHGIURPWKHVXSSRUW JULG *HQHUDOO\ SLSH W\SH SUHFLSLWDWRUV DUH SUHIHUUHG IRU PRLVW JDVHV DQG OLTXLG DHURVROV

,QSLSHW\SHHOHFWURVWDWLFSUHFLSLWDWRUVWKHFROOHFWLQJHOHFWURGHVDUHLQWKHIRUPRI DQHVWRISDUDOOHOSLSHV7KHGLDPHWHURIHDFKSLSHLVDSSUR[LPDWHO\FP$WKLQ ZLUHVXVSHQGHGDWWKHFHQWUHRIWKHSLSHDQGFRQQHFWHGWRWKHSRZHUVXSSO\IURP WKHWRSVHUYHVDVWKHGLVFKDUJHHOHFWURGH,WLVHOHFWULFDOO\LQVXODWHGIURPWKHVXSSRUW JULG *HQHUDOO\ SLSH W\SH SUHFLSLWDWRUV DUH SUHIHUUHG IRU PRLVW JDVHV DQG OLTXLG DHURVROV

3ODWH7\SH3UHFLSLWDWRUV

3ODWH7\SH3UHFLSLWDWRUV

3ODWHW\SHSUHFLSLWDWRUVFRQVLVWRIDQXPEHURISDUDOOHOSODWHVRI±PZLGWKDQG ± P KHLJKW 7KH\ DUH VSDFHG ± FP DSDUW 7KH GLVFKDUJH HOHFWURGHV DUH XVXDOO\ VTXDUH RU WZLVWHG VTXDUH URGV RI  PP WKLFNQHVV %RWK YHUWLFDO DQG KRUL]RQWDOIORZW\SHHTXLSPHQWDUHDYDLODEOHLQWKHPDUNHW*DVYHORFLWLHVDUHRI WKHRUGHURI± PVHF)LJXUHVKRZVSODWHW\SHSUHFLSLWDWRUV (OHFWURVWDWLF SUHFLSLWDWRUV FDQ DOVR EH FODVVLILHG DV GU\ SUHFLSLWDWRUV RU ZHW V\VWHPVGHSHQGLQJXSRQWKHPRGHRIRSHUDWLRQ,QGU\SUHFLSLWDWRUVFOHDQLQJLV FDUULHG RXW E\ UDSSLQJ RU YLEUDWLRQ ,Q ZHW SUHFLSLWDWRUV ZDWHU RU RWKHU IOXLG LV HPSOR\HGIRUFOHDQLQJ(YHQWKRXJKZHWSUHFLSLWDWRUVDUHPRUHHIILFLHQWIRUGXVW UHPRYDOGU\SURFHVVSODWHW\SHSUHFLSLWDWRUVDUHWKHLQGXVWU\QRUPV

3ODWHW\SHSUHFLSLWDWRUVFRQVLVWRIDQXPEHURISDUDOOHOSODWHVRI±PZLGWKDQG ± P KHLJKW 7KH\ DUH VSDFHG ± FP DSDUW 7KH GLVFKDUJH HOHFWURGHV DUH XVXDOO\ VTXDUH RU WZLVWHG VTXDUH URGV RI  PP WKLFNQHVV %RWK YHUWLFDO DQG KRUL]RQWDOIORZW\SHHTXLSPHQWDUHDYDLODEOHLQWKHPDUNHW*DVYHORFLWLHVDUHRI WKHRUGHURI± PVHF)LJXUHVKRZVSODWHW\SHSUHFLSLWDWRUV (OHFWURVWDWLF SUHFLSLWDWRUV FDQ DOVR EH FODVVLILHG DV GU\ SUHFLSLWDWRUV RU ZHW V\VWHPVGHSHQGLQJXSRQWKHPRGHRIRSHUDWLRQ,QGU\SUHFLSLWDWRUVFOHDQLQJLV FDUULHG RXW E\ UDSSLQJ RU YLEUDWLRQ ,Q ZHW SUHFLSLWDWRUV ZDWHU RU RWKHU IOXLG LV HPSOR\HGIRUFOHDQLQJ(YHQWKRXJKZHWSUHFLSLWDWRUVDUHPRUHHIILFLHQWIRUGXVW UHPRYDOGU\SURFHVVSODWHW\SHSUHFLSLWDWRUVDUHWKHLQGXVWU\QRUPV

$GYDQWDJHVRI(OHFWURVWDWLF3UHFLSLWDWRUV

$GYDQWDJHVRI(OHFWURVWDWLF3UHFLSLWDWRUV

(OHFWURVWDWLF SUHFLSLWDWRUV SURYLGH KLJKHU WKDQ  FROOHFWLRQ HIILFLHQFLHV IRU SDUWLFOHVGRZQWR—VL]H2SHUDWLQJDQGPDLQWHQDQFHFRVWVDUHDOVRTXLWHORZ /RZSUHVVXUHGURSGXULQJWKHRSHUDWLRQSHUPLWVKDQGOLQJRIODUJHYROXPHRIKLJK WHPSHUDWXUHJDVDWDQHJOLJLEOHWLPHVFDOH3HULRGLFDOFOHDQLQJLVDOVRHDV\6ROLGV OLTXLG SDUWLFOHV DQG FRUURVLYH JDVHV FDQ EH HDVLO\ KDQGOHG LQ WKHVH XQLWV 6LQFH WKHUH DUH IHZ PRYLQJ SDUWV (63V FDQ EH RSHUDWHG DW KLJK WHPSHUDWXUHV DQG SUHVVXUHV7KHUHIRUHLWLVHFRQRPLFDODQGVLPSOHWRRSHUDWH

(OHFWURVWDWLF SUHFLSLWDWRUV SURYLGH KLJKHU WKDQ  FROOHFWLRQ HIILFLHQFLHV IRU SDUWLFOHVGRZQWR—VL]H2SHUDWLQJDQGPDLQWHQDQFHFRVWVDUHDOVRTXLWHORZ /RZSUHVVXUHGURSGXULQJWKHRSHUDWLRQSHUPLWVKDQGOLQJRIODUJHYROXPHRIKLJK WHPSHUDWXUHJDVDWDQHJOLJLEOHWLPHVFDOH3HULRGLFDOFOHDQLQJLVDOVRHDV\6ROLGV OLTXLG SDUWLFOHV DQG FRUURVLYH JDVHV FDQ EH HDVLO\ KDQGOHG LQ WKHVH XQLWV 6LQFH WKHUH DUH IHZ PRYLQJ SDUWV (63V FDQ EH RSHUDWHG DW KLJK WHPSHUDWXUHV DQG SUHVVXUHV7KHUHIRUHLWLVHFRQRPLFDODQGVLPSOHWRRSHUDWH

 'LVDGYDQWDJHV RI (OHFWURVWDWLF 3UHFLSLWDWRUV

 'LVDGYDQWDJHV RI (OHFWURVWDWLF 3UHFLSLWDWRUV

7KHPDLQGLVDGYDQWDJHVHOHFWURVWDWLFSUHFLSLWDWRUVDUHWKHLUKLJKLQLWLDOFRVWVDQG ODUJHVSDFHUHTXLUHPHQWV6LQFHYHU\KLJKYROWDJHVDUHUHTXLUHGIRUURXWLQHRSHUDWLRQ SURSHU VDIHW\ SUHFDXWLRQV PXVW EH LQVWDOOHG WR DYRLG H[SORVLRQ KD]DUGV GXULQJ FROOHFWLRQRIFRPEXVWLEOHSDUWLFXODWHV7KHVDIHW\SUHFDXWLRQVLQFOXGHSURSHUJDV

7KHPDLQGLVDGYDQWDJHVHOHFWURVWDWLFSUHFLSLWDWRUVDUHWKHLUKLJKLQLWLDOFRVWVDQG ODUJHVSDFHUHTXLUHPHQWV6LQFHYHU\KLJKYROWDJHVDUHUHTXLUHGIRUURXWLQHRSHUDWLRQ SURSHU VDIHW\ SUHFDXWLRQV PXVW EH LQVWDOOHG WR DYRLG H[SORVLRQ KD]DUGV GXULQJ FROOHFWLRQRIFRPEXVWLEOHSDUWLFXODWHV7KHVDIHW\SUHFDXWLRQVLQFOXGHSURSHUJDV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

IORZGLVWULEXWLRQJDVUHVLVWLYLW\SDUWLFXODWHFRQGXFWLYLW\FRURQDVSDUNRYHUUDWH HWF 8QGHU W\SLFDO RSHUDWLQJ FRQGLWLRQV LQ VLQJOHVWDJH SUHFLSLWDWRU TXLWH RIWHQ R]RQHLVSURGXFHGZKLFKVKRXOGEHPRQLWRUHGFORVHO\WRSUHYHQWUXQDZD\FKHPLFDO UHDFWLRQV%XLOGXSRIGXVWFDXVHVJUDGXDOGHWHULRUDWLRQLQWKHFROOHFWLRQHIILFLHQF\

IORZGLVWULEXWLRQJDVUHVLVWLYLW\SDUWLFXODWHFRQGXFWLYLW\FRURQDVSDUNRYHUUDWH HWF 8QGHU W\SLFDO RSHUDWLQJ FRQGLWLRQV LQ VLQJOHVWDJH SUHFLSLWDWRU TXLWH RIWHQ R]RQHLVSURGXFHGZKLFKVKRXOGEHPRQLWRUHGFORVHO\WRSUHYHQWUXQDZD\FKHPLFDO UHDFWLRQV%XLOGXSRIGXVWFDXVHVJUDGXDOGHWHULRUDWLRQLQWKHFROOHFWLRQHIILFLHQF\

$SSOLFDWLRQV

$SSOLFDWLRQV

7KHLPSRUWDQWLQGXVWULDODSSOLFDWLRQVRIHOHFWURVWDWLFSUHFLSLWDWRUVDUHOLVWHGEHORZ  &OHDQLQJRIIOXHJDVHVFHPHQWNLOQVEODVWIXUQDFHJDVHVIO\DVKIURPFRDO ILUHGERLOHUV   5HFRYHU\RIFHPHQWGXVWVRGDIXPHUHFRYHU\LQNUDIWSXOSPLOOVDFLGPLVWV IURP QRQIHUURXV LQGXVWULHV FDWDO\VW GXVWV IURP SHWURFKHPLFDO RSHUDWLRQV FDUERQ EODFN HWF  &ROOHFWLRQRIVXOSKXULFDQGSKRVSKRULFDFLGPLVWVDQGHOHPHQWDOSKRVSKRUXV LQYDSRXUSKDVH  6HSDUDWLRQRIGXVWSDUWLFOHVIURPFRPEXVWLRQJDVHVVXFKDV &2  62   12 [  K\GURJHQ ZDWHU YDSRXU HWF

7KHLPSRUWDQWLQGXVWULDODSSOLFDWLRQVRIHOHFWURVWDWLFSUHFLSLWDWRUVDUHOLVWHGEHORZ  &OHDQLQJRIIOXHJDVHVFHPHQWNLOQVEODVWIXUQDFHJDVHVIO\DVKIURPFRDO ILUHGERLOHUV   5HFRYHU\RIFHPHQWGXVWVRGDIXPHUHFRYHU\LQNUDIWSXOSPLOOVDFLGPLVWV IURP QRQIHUURXV LQGXVWULHV FDWDO\VW GXVWV IURP SHWURFKHPLFDO RSHUDWLRQV FDUERQ EODFN HWF  &ROOHFWLRQRIVXOSKXULFDQGSKRVSKRULFDFLGPLVWVDQGHOHPHQWDOSKRVSKRUXV LQYDSRXUSKDVH  6HSDUDWLRQRIGXVWSDUWLFOHVIURPFRPEXVWLRQJDVHVVXFKDV &2  62   12 [  K\GURJHQ ZDWHU YDSRXU HWF

 3$57,&8/$7(5(029$/%@$FFRUGLQJWR:DOWRQGURSVKDSHDQGRVFLOODWLRQKDYHQHJOLJLEOH HIIHFWRQFROOHFWLRQHIILFLHQF\$VLPSOHLQHUWLDOPRGHOSUHGLFWVDOLQHDUUHODWLRQVKLS EHWZHHQ WKH FROOHFWLRQ HIILFLHQF\ DQG LPSDFW SDUDPHWHU .  7KH FROOHFWLRQ HIILFLHQF\KVF IRULGHQWLFDOVSKHULFDOGURSOHWVLVJLYHQE\

KVF

    Q G Q

KVF



    Q G Q



ZKHUHQLVQXPEHURIFROOHFWLQJGURSOHWVFRQWDFWHGE\WKHSDUWLFOHVDQGKGLVWKH LQGLYLGXDOGURSFROOHFWLRQHIILFLHQF\ $W\SLFDOVSUD\WRZHUZLWKDSSURSULDWHGLPHQVLRQVLVVKRZQLQ)LJ

ZKHUHQLVQXPEHURIFROOHFWLQJGURSOHWVFRQWDFWHGE\WKHSDUWLFOHVDQGKGLVWKH LQGLYLGXDOGURSFROOHFWLRQHIILFLHQF\ $W\SLFDOVSUD\WRZHUZLWKDSSURSULDWHGLPHQVLRQVLVVKRZQLQ)LJ

)RUVSUD\WRZHUVWKHYDOXHRIQFDQEHFDOFXODWHGIURPWKHH[SUHVVLRQ

)RUVSUD\WRZHUVWKHYDOXHRIQFDQEHFDOFXODWHGIURPWKHH[SUHVVLRQ

Q

º PV / ª   «  » U/ G «¬ 4 $VF 9WG  9S »¼

ZKHUH PVLVWKHPDVVRIIORZUDWHRIWKHVSUD\OLTXLG /LVWKHKHLJKWRIWKHVSUD\WRZHU GLVWKHDYHUDJHGURSOHWVL]H 4LVWKHYROXPHWULFIORZUDWHRIDLU



Q

º PV / ª   «  » U/ G «¬ 4 $VF 9WG  9S »¼

ZKHUH PVLVWKHPDVVRIIORZUDWHRIWKHVSUD\OLTXLG /LVWKHKHLJKWRIWKHVSUD\WRZHU GLVWKHDYHUDJHGURSOHWVL]H 4LVWKHYROXPHWULFIORZUDWHRIDLU



3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV

Cleaned air



Cleaned air

Separator

Separator

Spray flood h1

Spray flood h1 Sprays

Sprays

Dd

Dd

K ' 9G 9D 4 'G

D

O

Vd

Va

+HLJKWRIVSUD\WRZHU 'LDPHWHURIWKHSDUWLFOH 9HORFLW\RIWKHGURSOHW 9HORFLW\RIDLU 9ROXPHWULFIORZUDWH 'LDPHWHURIWKHQR]]OHSLSH

K ' 9G 9D 4 'G

D

O

Vd

Va

Va

+HLJKWRIVSUD\WRZHU 'LDPHWHURIWKHSDUWLFOH 9HORFLW\RIWKHGURSOHW 9HORFLW\RIDLU 9ROXPHWULFIORZUDWH 'LDPHWHURIWKHQR]]OHSLSH

Va Q Air and particles

Q Air and particles

Slurry

Slurry

)LJ6SUD\WRZHU

)LJ6SUD\WRZHU

U/WKHGHQVLW\RIOLTXLG $VFFURVVVHFWLRQDODUHDRIWKHWRZHU'6F  9WGWKHWHUPLQDOIDOOLQJYHORFLW\RIWKHGURSOHWDQG 9SWKHSDUWLFOHYHORFLW\RUDLU4$VF 

U/WKHGHQVLW\RIOLTXLG $VFFURVVVHFWLRQDODUHDRIWKHWRZHU'6F  9WGWKHWHUPLQDOIDOOLQJYHORFLW\RIWKHGURSOHWDQG 9SWKHSDUWLFOHYHORFLW\RUDLU4$VF 

7KHRU\SUHGLFWVWKDWIRUYHUWLFDOFRXQWHUFXUUHQWIORZWKHXSZDUGJDVYHORFLW\ LVQHDUO\HTXDOWRWKHVHWWOLQJYHORFLW\H[FHSWQHDUWKHVFUXEEHUZDOOV7KHUHIRUH VPDOOHUWKHGLDPHWHURIWKHVFUXEEHUEHWWHULVWKHHIILFLHQF\7KLVIDFWLVXVHGLQ GHVLJQLQJWKHVSUD\WRZHUV )RUFURVVIORZGHVLJQVWKHOLTXLGVSUD\UDWHFKDQJHVE\DERXWWLPHVWKH UDGLDOGLVWDQFHDQGGURSVL]H7KHGURSFROOHFWLRQHIILFLHQF\KGLQHTXDWLRQ FDQEHFDOFXODWHGIURPWKHH[SUHVVLRQ

 PV   u  4 $VF 9WG  9S U/ G

KG

7KHRU\SUHGLFWVWKDWIRUYHUWLFDOFRXQWHUFXUUHQWIORZWKHXSZDUGJDVYHORFLW\ LVQHDUO\HTXDOWRWKHVHWWOLQJYHORFLW\H[FHSWQHDUWKHVFUXEEHUZDOOV7KHUHIRUH VPDOOHUWKHGLDPHWHURIWKHVFUXEEHUEHWWHULVWKHHIILFLHQF\7KLVIDFWLVXVHGLQ GHVLJQLQJWKHVSUD\WRZHUV )RUFURVVIORZGHVLJQVWKHOLTXLGVSUD\UDWHFKDQJHVE\DERXWWLPHVWKH UDGLDOGLVWDQFHDQGGURSVL]H7KHGURSFROOHFWLRQHIILFLHQF\KGLQHTXDWLRQ FDQEHFDOFXODWHGIURPWKHH[SUHVVLRQ

 PV   u  4 $VF 9WG  9S U/ G

KG





ZKHUHWKHV\PEROVKDYHWKHLUXVXDOPHDQLQJV 7KHWDUJHWHIILFLHQF\RIDW\SLFDOFRQYHQWLRQDOVSUD\WRZHULVDERXWIRU PPSDUWLFOHVL]HDQGIRU—PSDUWLFOHVL]H$VHPLHPSLULFDOUHODWLRQVKLS EHWZHHQWKHSDUWLFOHVL]HDQGWDUJHWHIILFLHQF\LVJLYHQLQ)LJ 7KHHIILFLHQF\RIVSUD\WRZHUVFDQEHLQFUHDVHGE\LQFRUSRUDWLQJDVHULHVRI OLTXLGLQOHWVDQGLQWHUQDOEDIIOHVWRSURYLGHDGGLWLRQDOLPSLQJHPHQWVXUIDFHV

ZKHUHWKHV\PEROVKDYHWKHLUXVXDOPHDQLQJV 7KHWDUJHWHIILFLHQF\RIDW\SLFDOFRQYHQWLRQDOVSUD\WRZHULVDERXWIRU PPSDUWLFOHVL]HDQGIRU—PSDUWLFOHVL]H$VHPLHPSLULFDOUHODWLRQVKLS EHWZHHQWKHSDUWLFOHVL]HDQGWDUJHWHIILFLHQF\LVJLYHQLQ)LJ 7KHHIILFLHQF\RIVSUD\WRZHUVFDQEHLQFUHDVHGE\LQFRUSRUDWLQJDVHULHVRI OLTXLGLQOHWVDQGLQWHUQDOEDIIOHVWRSURYLGHDGGLWLRQDOLPSLQJHPHQWVXUIDFHV

 9HQWXUL 6FUXEEHUV

 9HQWXUL 6FUXEEHUV

9HQWXUL VFUXEEHUV DUH KLJK HQHUJ\ VFUXEEHUV XVHIXO IRU JDVHV PRYLQJ DW KLJK YHORFLWLHV RI ± PHWUHV SHU VHFRQG 7KH\ DUH SDUWLFXODUO\ VXLWDEOH IRU WKH

9HQWXUL VFUXEEHUV DUH KLJK HQHUJ\ VFUXEEHUV XVHIXO IRU JDVHV PRYLQJ DW KLJK YHORFLWLHV RI ± PHWUHV SHU VHFRQG 7KH\ DUH SDUWLFXODUO\ VXLWDEOH IRU WKH

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV

Cleaned air



Cleaned air

Separator

Separator

Spray flood h1

Spray flood h1 Sprays

Sprays

Dd

Dd

K ' 9G 9D 4 'G

D

O

Vd

Va

+HLJKWRIVSUD\WRZHU 'LDPHWHURIWKHSDUWLFOH 9HORFLW\RIWKHGURSOHW 9HORFLW\RIDLU 9ROXPHWULFIORZUDWH 'LDPHWHURIWKHQR]]OHSLSH

Va

Vd

Va

+HLJKWRIVSUD\WRZHU 'LDPHWHURIWKHSDUWLFOH 9HORFLW\RIWKHGURSOHW 9HORFLW\RIDLU 9ROXPHWULFIORZUDWH 'LDPHWHURIWKHQR]]OHSLSH

Va Q Air and particles

Q Air and particles

Slurry

Slurry

)LJ6SUD\WRZHU

)LJ6SUD\WRZHU

U/WKHGHQVLW\RIOLTXLG $VFFURVVVHFWLRQDODUHDRIWKHWRZHU'6F  9WGWKHWHUPLQDOIDOOLQJYHORFLW\RIWKHGURSOHWDQG 9SWKHSDUWLFOHYHORFLW\RUDLU4$VF 

U/WKHGHQVLW\RIOLTXLG $VFFURVVVHFWLRQDODUHDRIWKHWRZHU'6F  9WGWKHWHUPLQDOIDOOLQJYHORFLW\RIWKHGURSOHWDQG 9SWKHSDUWLFOHYHORFLW\RUDLU4$VF 

7KHRU\SUHGLFWVWKDWIRUYHUWLFDOFRXQWHUFXUUHQWIORZWKHXSZDUGJDVYHORFLW\ LVQHDUO\HTXDOWRWKHVHWWOLQJYHORFLW\H[FHSWQHDUWKHVFUXEEHUZDOOV7KHUHIRUH VPDOOHUWKHGLDPHWHURIWKHVFUXEEHUEHWWHULVWKHHIILFLHQF\7KLVIDFWLVXVHGLQ GHVLJQLQJWKHVSUD\WRZHUV )RUFURVVIORZGHVLJQVWKHOLTXLGVSUD\UDWHFKDQJHVE\DERXWWLPHVWKH UDGLDOGLVWDQFHDQGGURSVL]H7KHGURSFROOHFWLRQHIILFLHQF\KGLQHTXDWLRQ FDQEHFDOFXODWHGIURPWKHH[SUHVVLRQ

KG

K ' 9G 9D 4 'G

D

O

 PV   u  4 $VF 9WG  9S U/ G



7KHRU\SUHGLFWVWKDWIRUYHUWLFDOFRXQWHUFXUUHQWIORZWKHXSZDUGJDVYHORFLW\ LVQHDUO\HTXDOWRWKHVHWWOLQJYHORFLW\H[FHSWQHDUWKHVFUXEEHUZDOOV7KHUHIRUH VPDOOHUWKHGLDPHWHURIWKHVFUXEEHUEHWWHULVWKHHIILFLHQF\7KLVIDFWLVXVHGLQ GHVLJQLQJWKHVSUD\WRZHUV )RUFURVVIORZGHVLJQVWKHOLTXLGVSUD\UDWHFKDQJHVE\DERXWWLPHVWKH UDGLDOGLVWDQFHDQGGURSVL]H7KHGURSFROOHFWLRQHIILFLHQF\KGLQHTXDWLRQ FDQEHFDOFXODWHGIURPWKHH[SUHVVLRQ

KG

 PV   u  4 $VF 9WG  9S U/ G



ZKHUHWKHV\PEROVKDYHWKHLUXVXDOPHDQLQJV 7KHWDUJHWHIILFLHQF\RIDW\SLFDOFRQYHQWLRQDOVSUD\WRZHULVDERXWIRU PPSDUWLFOHVL]HDQGIRU—PSDUWLFOHVL]H$VHPLHPSLULFDOUHODWLRQVKLS EHWZHHQWKHSDUWLFOHVL]HDQGWDUJHWHIILFLHQF\LVJLYHQLQ)LJ 7KHHIILFLHQF\RIVSUD\WRZHUVFDQEHLQFUHDVHGE\LQFRUSRUDWLQJDVHULHVRI OLTXLGLQOHWVDQGLQWHUQDOEDIIOHVWRSURYLGHDGGLWLRQDOLPSLQJHPHQWVXUIDFHV

ZKHUHWKHV\PEROVKDYHWKHLUXVXDOPHDQLQJV 7KHWDUJHWHIILFLHQF\RIDW\SLFDOFRQYHQWLRQDOVSUD\WRZHULVDERXWIRU PPSDUWLFOHVL]HDQGIRU—PSDUWLFOHVL]H$VHPLHPSLULFDOUHODWLRQVKLS EHWZHHQWKHSDUWLFOHVL]HDQGWDUJHWHIILFLHQF\LVJLYHQLQ)LJ 7KHHIILFLHQF\RIVSUD\WRZHUVFDQEHLQFUHDVHGE\LQFRUSRUDWLQJDVHULHVRI OLTXLGLQOHWVDQGLQWHUQDOEDIIOHVWRSURYLGHDGGLWLRQDOLPSLQJHPHQWVXUIDFHV

 9HQWXUL 6FUXEEHUV

 9HQWXUL 6FUXEEHUV

9HQWXUL VFUXEEHUV DUH KLJK HQHUJ\ VFUXEEHUV XVHIXO IRU JDVHV PRYLQJ DW KLJK YHORFLWLHV RI ± PHWUHV SHU VHFRQG 7KH\ DUH SDUWLFXODUO\ VXLWDEOH IRU WKH

9HQWXUL VFUXEEHUV DUH KLJK HQHUJ\ VFUXEEHUV XVHIXO IRU JDVHV PRYLQJ DW KLJK YHORFLWLHV RI ± PHWUHV SHU VHFRQG 7KH\ DUH SDUWLFXODUO\ VXLWDEOH IRU WKH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

1.0

1.0

0.9

0.9

0.8

0.8

0.7

0.7

Target efficiency

Target efficiency

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

0.6

0.5

0.6

0.5

0.4

0.4

0.3

0.3

0.2

0.2

0.1

0.1

0

0

1

2

3

4

5

6

7

8

9

0

10

0

1

2

3

Particle diameter (μm)

4

5

6

7

8

9

10

Particle diameter (μm)

)LJ7DUJHWHIILFLHQF\IRU±—PGLDPHWHUSDUWLFOHV

)LJ7DUJHWHIILFLHQF\IRU±—PGLDPHWHUSDUWLFOHV

VHSDUDWLRQRIVWLFN\IODPPDEOHRUFRUURVLYHSDUWLFXODWHPDWWHU$W\SLFDOYHQWXUL VFUXEEHUGHVLJQLVVKRZQLQ)LJ

VHSDUDWLRQRIVWLFN\IODPPDEOHRUFRUURVLYHSDUWLFXODWHPDWWHU$W\SLFDOYHQWXUL VFUXEEHUGHVLJQLVVKRZQLQ)LJ

7KHLPSRUWDQWFRPSRQHQWVRIDYHQWXULDUH

7KHLPSRUWDQWFRPSRQHQWVRIDYHQWXULDUH

   

*DVLQOHW 6FUXEELQJOLTXLGLQMHFWLRQSRUW 9HQWXULVHFWLRQ &\FORQHVHSDUDWRU

   

*DVLQOHW 6FUXEELQJOLTXLGLQMHFWLRQSRUW 9HQWXULVHFWLRQ &\FORQHVHSDUDWRU

,QYHQWXULVFUXEEHUVSDUWLFOHODGHQJDVPRYLQJDWKLJKYHORFLW\LVLQWURGXFHGDW WKHLQOHW]RQHDQGOHGLQWRWKHYHQWXULVHFWLRQ7KHVFUXEELQJOLTXLGLVLQWURGXFHGLQ D GLUHFWLRQ QRUPDO WR WKH DLUIORZ +LJK YHORFLW\ RI WKH FDUULHU JDV LPPHGLDWHO\ DWRPL]HVWKHVFUXEELQJOLTXLGLQWRXQLIRUPGURSOHWV7KHVHGURSOHWVDOVRDFFHOHUDWH LQWKHWKURDWVHFWLRQ7KHYHORFLW\GLIIHUHQFHEHWZHHQWKHJDVPROHFXOHVDQGWKH SDUWLFXODWHV FDXVHV LPSDFWLRQ RI WKH SDUWLFOHV RQ WKH GURSOHWV 7KH DFFHOHUDWLRQ FRQWLQXHV XQWLO WKH LPSDFWHG GURSOHWV UHDFK WKH HQG RI WKH YHQWXUL DQG HQWHU D F\FORQH VHSDUDWRU 7KHPHFKDQLVPVDIIHFWLQJWKHFDSWXUHRISDUWLFXODWHVLQWKHYHQWXULVFUXEEHU DUH LQHUWLDO LPSDFWLRQ GLIIXVLRQ HOHFWURVWDWLF SKHQRPHQRQ FRQGHQVDWLRQ DQG DJJORPHUDWLRQ7KHSULQFLSOHPHFKDQLVPLVRQO\LPSDFWLRQDOWKRXJKFRQGHQVDWLRQ DOVRSOD\VDQLPSRUWDQWUROHLQWKHDJJORPHUDWLRQSURFHVVDQGVXEVHTXHQWO\LQWKH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

1.0

1.0

0.9

0.9

0.8

0.8

0.7

0.7

Target efficiency

Target efficiency

,QYHQWXULVFUXEEHUVSDUWLFOHODGHQJDVPRYLQJDWKLJKYHORFLW\LVLQWURGXFHGDW WKHLQOHW]RQHDQGOHGLQWRWKHYHQWXULVHFWLRQ7KHVFUXEELQJOLTXLGLVLQWURGXFHGLQ D GLUHFWLRQ QRUPDO WR WKH DLUIORZ +LJK YHORFLW\ RI WKH FDUULHU JDV LPPHGLDWHO\ DWRPL]HVWKHVFUXEELQJOLTXLGLQWRXQLIRUPGURSOHWV7KHVHGURSOHWVDOVRDFFHOHUDWH LQWKHWKURDWVHFWLRQ7KHYHORFLW\GLIIHUHQFHEHWZHHQWKHJDVPROHFXOHVDQGWKH SDUWLFXODWHV FDXVHV LPSDFWLRQ RI WKH SDUWLFOHV RQ WKH GURSOHWV 7KH DFFHOHUDWLRQ FRQWLQXHV XQWLO WKH LPSDFWHG GURSOHWV UHDFK WKH HQG RI WKH YHQWXUL DQG HQWHU D F\FORQH VHSDUDWRU 7KHPHFKDQLVPVDIIHFWLQJWKHFDSWXUHRISDUWLFXODWHVLQWKHYHQWXULVFUXEEHU DUH LQHUWLDO LPSDFWLRQ GLIIXVLRQ HOHFWURVWDWLF SKHQRPHQRQ FRQGHQVDWLRQ DQG DJJORPHUDWLRQ7KHSULQFLSOHPHFKDQLVPLVRQO\LPSDFWLRQDOWKRXJKFRQGHQVDWLRQ DOVRSOD\VDQLPSRUWDQWUROHLQWKHDJJORPHUDWLRQSURFHVVDQGVXEVHTXHQWO\LQWKH

0.6

0.5

0.6

0.5

0.4

0.4

0.3

0.3

0.2

0.2

0.1

0.1

0

0

1

2

3

4

5

6

7

8

9

0

10

Particle diameter (μm)

0

1

2

3

4

5

6

7

8

9

10

Particle diameter (μm)

)LJ7DUJHWHIILFLHQF\IRU±—PGLDPHWHUSDUWLFOHV

)LJ7DUJHWHIILFLHQF\IRU±—PGLDPHWHUSDUWLFOHV

VHSDUDWLRQRIVWLFN\IODPPDEOHRUFRUURVLYHSDUWLFXODWHPDWWHU$W\SLFDOYHQWXUL VFUXEEHUGHVLJQLVVKRZQLQ)LJ

VHSDUDWLRQRIVWLFN\IODPPDEOHRUFRUURVLYHSDUWLFXODWHPDWWHU$W\SLFDOYHQWXUL VFUXEEHUGHVLJQLVVKRZQLQ)LJ

7KHLPSRUWDQWFRPSRQHQWVRIDYHQWXULDUH

7KHLPSRUWDQWFRPSRQHQWVRIDYHQWXULDUH

   

*DVLQOHW 6FUXEELQJOLTXLGLQMHFWLRQSRUW 9HQWXULVHFWLRQ &\FORQHVHSDUDWRU

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

   

*DVLQOHW 6FUXEELQJOLTXLGLQMHFWLRQSRUW 9HQWXULVHFWLRQ &\FORQHVHSDUDWRU

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

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV

Gas inlet



Gas inlet

Water inlet

Water inlet

)LJ9HQWXULVFUXEEHU

)LJ9HQWXULVFUXEEHU

HIIHFWLYHQHVVRIWKHVFUXEEHU7KHIROORZLQJFRQVLGHUDWLRQVDUHLPSRUWDQWLQWKH GHVLJQRIWKHYHQWXULVFUXEEHUV

HIIHFWLYHQHVVRIWKHVFUXEEHU7KHIROORZLQJFRQVLGHUDWLRQVDUHLPSRUWDQWLQWKH GHVLJQRIWKHYHQWXULVFUXEEHUV

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

7KHUHODWLRQVKLSEHWZHHQWKHFROOHFWLRQHIILFLHQF\RIDYHQWXULVFUXEEHUDQG LPSDFWLRQSDUDPHWHULVJLYHQE\

7KHUHODWLRQVKLSEHWZHHQWKHFROOHFWLRQHIILFLHQF\RIDYHQWXULVFUXEEHUDQG LPSDFWLRQSDUDPHWHULVJLYHQE\

KVF

  H[S ./ <



ZKHUHKVFLVWKHVFUXEEHUHIILFLHQF\.LVDQHPSLULFDOSDUDPHWHUEDVHGRQWKH

3DUWLFXODWH&RQWURO7HFKQRORJLHV

KVF

  H[S ./ <



ZKHUHKVFLVWKHVFUXEEHUHIILFLHQF\.LVDQHPSLULFDOSDUDPHWHUEDVHGRQWKH



3DUWLFXODWH&RQWURO7HFKQRORJLHV

Gas inlet



Gas inlet

Water inlet

Water inlet

)LJ9HQWXULVFUXEEHU

)LJ9HQWXULVFUXEEHU

HIIHFWLYHQHVVRIWKHVFUXEEHU7KHIROORZLQJFRQVLGHUDWLRQVDUHLPSRUWDQWLQWKH GHVLJQRIWKHYHQWXULVFUXEEHUV

HIIHFWLYHQHVVRIWKHVFUXEEHU7KHIROORZLQJFRQVLGHUDWLRQVDUHLPSRUWDQWLQWKH GHVLJQRIWKHYHQWXULVFUXEEHUV

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

7KHUHODWLRQVKLSEHWZHHQWKHFROOHFWLRQHIILFLHQF\RIDYHQWXULVFUXEEHUDQG LPSDFWLRQSDUDPHWHULVJLYHQE\

7KHUHODWLRQVKLSEHWZHHQWKHFROOHFWLRQHIILFLHQF\RIDYHQWXULVFUXEEHUDQG LPSDFWLRQSDUDPHWHULVJLYHQE\

KVF

  H[S ./ <



ZKHUHKVFLVWKHVFUXEEHUHIILFLHQF\.LVDQHPSLULFDOSDUDPHWHUEDVHGRQWKH

KVF

  H[S ./ <



ZKHUHKVFLVWKHVFUXEEHUHIILFLHQF\.LVDQHPSLULFDOSDUDPHWHUEDVHGRQWKH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

WKURDW JHRPHWU\ ZKLFK YDULHV IURP  WR   DQG / LV WKH OLTXLG IORZ UDWH JDOIWRIJDV  7KHLQHUWLDOLPSDFWSDUDPHWHUKDVEHHQGLVFXVVHGHDUOLHU,WLVFRUUHODWHGWRWKH FROOHFWLRQHIILFLHQF\RIWKHYHQWXULVFUXEEHUE\

WKURDW JHRPHWU\ ZKLFK YDULHV IURP  WR   DQG / LV WKH OLTXLG IORZ UDWH JDOIWRIJDV  7KHLQHUWLDOLPSDFWSDUDPHWHUKDVEHHQGLVFXVVHGHDUOLHU,WLVFRUUHODWHGWRWKH FROOHFWLRQHIILFLHQF\RIWKHYHQWXULVFUXEEHUE\


@ 1W

&

G& & &

³

K 

& &

§& ·  OQ ¨  ¸ © & ¹



  H 1W



3DUWLFXODWH&RQWURO7HFKQRORJLHV



,QWKHDERYHHTXDWLRQV'3*LVWKHJDVSUHVVXUHORVVLQZDWHU'3/LVWKHSUHVVXUH GURSIRUOLTXLGLQSXWDWP 4/LVOLTXLGIORZUDWH O  PLQ 4*LVJDVIORZUDWHDQG :VLVWKHQHWPHFKDQLFDOSRZHULQSXWN:  7KHFROOHFWLRQHIILFLHQF\RIWKHVFUXEEHULQWHUPVRIPDVVWUDQVIHUXQLWV1WLV JLYHQE\>@ 1W

&

G& & &

³

K 

& &

§& ·  OQ ¨  ¸ © & ¹



  H 1W



ZKHUH&LVWKHLQOHWSDUWLFOHFRQFHQWUDWLRQDQG&LVWKHRXWOHWSDUWLFOHFRQFHQWUDWLRQ

ZKHUH&LVWKHLQOHWSDUWLFOHFRQFHQWUDWLRQDQG&LVWKHRXWOHWSDUWLFOHFRQFHQWUDWLRQ

$ SORW RI WKH QXPEHU RI WUDQVIHU XQLWV YHUVXV SRZHU FRQVXPSWLRQ 37  IRU GLIIHUHQWVFUXEEHUVDQGYDULRXVW\SHVRISDUWLFXODWHVJLYHVDQHPSLULFDOUHODWLRQVKLS

$ SORW RI WKH QXPEHU RI WUDQVIHU XQLWV YHUVXV SRZHU FRQVXPSWLRQ 37  IRU GLIIHUHQWVFUXEEHUVDQGYDULRXVW\SHVRISDUWLFXODWHVJLYHVDQHPSLULFDOUHODWLRQVKLS

1W

D 37E



1W

D 37E



ZKHUH D DQG E DUH HPSLULFDO FRQVWDQWV GHSHQGLQJ RQ WKH SDUWLFOH VL]H DQG LWV FKDUDFWHULVWLFVDQGELVGLPHQVLRQOHVVQXPEHUDQGKDVXQLWVRIKSIWPLQ  6LQFH37 LVJLYHQLQXQLWVRIN:KP LWKDVWREHFRQYHUWHGLQWRXQLWVRI KSIWPLQN:KP KSIWPLQ 7KHVHSDUDPHWHUV DUHLQGHSHQGHQWRIVFUXEEHUVL]HJHRPHWU\DQGWKHPDQQHURIDSSO\LQJFRQWDFW SRZHU7\SLFDOVFUXEEHUHIILFLHQF\SDUDPHWHUVDUHJLYHQLQ7DEOH>@

ZKHUH D DQG E DUH HPSLULFDO FRQVWDQWV GHSHQGLQJ RQ WKH SDUWLFOH VL]H DQG LWV FKDUDFWHULVWLFVDQGELVGLPHQVLRQOHVVQXPEHUDQGKDVXQLWVRIKSIWPLQ  6LQFH37 LVJLYHQLQXQLWVRIN:KP LWKDVWREHFRQYHUWHGLQWRXQLWVRI KSIWPLQN:KP KSIWPLQ 7KHVHSDUDPHWHUV DUHLQGHSHQGHQWRIVFUXEEHUVL]HJHRPHWU\DQGWKHPDQQHURIDSSO\LQJFRQWDFW SRZHU7\SLFDOVFUXEEHUHIILFLHQF\SDUDPHWHUVDUHJLYHQLQ7DEOH>@

7DEOH  &RPSDULVRQ RI VFUXEEHU HIILFLHQFLHV >@

7DEOH  &RPSDULVRQ RI VFUXEEHU HIILFLHQFLHV >@

6FUXEEHU

9HQWXUL

9HQWXUL DQG F\FORQLF VSUD\

9HQWXULSLSHOLQHDQG F\FORQLF VSUD\

$HURVRO

&RUUHODWLRQSDUDPHWHU D

E

7DOFGXVW





3KRVSKRULFDFLGPLVW



)RXQGU\ FXSROD GXVW



2SHQKHDUWKVWHHOIXUQDFH IXPH



6FUXEEHU

$HURVRO

&RUUHODWLRQSDUDPHWHU D

E

7DOFGXVW







3KRVSKRULFDFLGPLVW







)RXQGU\ FXSROD GXVW







2SHQKHDUWKVWHHOIXUQDFH IXPH





5DZJDVOLPHGXVWDQGVRGDIXPH 



%ODFN OLTXRU UHFRYHU\ IXUQDFH IXPH  )HUURVLOLFRQ IXUQDFH IXPH



3UHZDVKHG JDV VRGD IXPH +RWIXPHVROXWLRQIRUVFUXEELQJ

 

 

9HQWXUL

5DZJDVOLPHGXVWDQGVRGDIXPH 





%ODFN OLTXRU UHFRYHU\ IXUQDFH IXPH 





)HUURVLOLFRQ IXUQDFH IXPH





3UHZDVKHG JDV VRGD IXPH +RWIXPHVROXWLRQIRUVFUXEELQJ

 

 

9HQWXUL FRQGHQVDWLRQ VFUXEEHU ZLWK

9HQWXUL DQG F\FORQLF VSUD\

9HQWXULSLSHOLQHDQG F\FORQLF VSUD\ 9HQWXUL FRQGHQVDWLRQ VFUXEEHU ZLWK

L  PHFKDQLFDO VSUD\ JHQHUDWRU &RSSHUVXOSKDWH





L  PHFKDQLFDO VSUD\ JHQHUDWRU &RSSHUVXOSKDWH





LL  K\GUDXOLF QR]]OHV

&RSSHUVXOSKDWH





LL  K\GUDXOLF QR]]OHV

&RSSHUVXOSKDWH





&\FORQH

7DOFGXVW





&\FORQH

7DOFGXVW





3DUWLFXODWH&RQWURO7HFKQRORJLHV



,QWKHDERYHHTXDWLRQV'3*LVWKHJDVSUHVVXUHORVVLQZDWHU'3/LVWKHSUHVVXUH GURSIRUOLTXLGLQSXWDWP 4/LVOLTXLGIORZUDWH O  PLQ 4*LVJDVIORZUDWHDQG :VLVWKHQHWPHFKDQLFDOSRZHULQSXWN:  7KHFROOHFWLRQHIILFLHQF\RIWKHVFUXEEHULQWHUPVRIPDVVWUDQVIHUXQLWV1WLV JLYHQE\>@ 1W

&

G& & &

³

K 

& &

§& ·  OQ ¨  ¸ © & ¹



  H 1W



3DUWLFXODWH&RQWURO7HFKQRORJLHV



,QWKHDERYHHTXDWLRQV'3*LVWKHJDVSUHVVXUHORVVLQZDWHU'3/LVWKHSUHVVXUH GURSIRUOLTXLGLQSXWDWP 4/LVOLTXLGIORZUDWH O  PLQ 4*LVJDVIORZUDWHDQG :VLVWKHQHWPHFKDQLFDOSRZHULQSXWN:  7KHFROOHFWLRQHIILFLHQF\RIWKHVFUXEEHULQWHUPVRIPDVVWUDQVIHUXQLWV1WLV JLYHQE\>@ 1W

&

G& & &

³

K 

& &

§& ·  OQ ¨  ¸ © & ¹



  H 1W



ZKHUH&LVWKHLQOHWSDUWLFOHFRQFHQWUDWLRQDQG&LVWKHRXWOHWSDUWLFOHFRQFHQWUDWLRQ

ZKHUH&LVWKHLQOHWSDUWLFOHFRQFHQWUDWLRQDQG&LVWKHRXWOHWSDUWLFOHFRQFHQWUDWLRQ

$ SORW RI WKH QXPEHU RI WUDQVIHU XQLWV YHUVXV SRZHU FRQVXPSWLRQ 37  IRU GLIIHUHQWVFUXEEHUVDQGYDULRXVW\SHVRISDUWLFXODWHVJLYHVDQHPSLULFDOUHODWLRQVKLS

$ SORW RI WKH QXPEHU RI WUDQVIHU XQLWV YHUVXV SRZHU FRQVXPSWLRQ 37  IRU GLIIHUHQWVFUXEEHUVDQGYDULRXVW\SHVRISDUWLFXODWHVJLYHVDQHPSLULFDOUHODWLRQVKLS

1W

D 37E



1W

D 37E



ZKHUH D DQG E DUH HPSLULFDO FRQVWDQWV GHSHQGLQJ RQ WKH SDUWLFOH VL]H DQG LWV FKDUDFWHULVWLFVDQGELVGLPHQVLRQOHVVQXPEHUDQGKDVXQLWVRIKSIWPLQ  6LQFH37 LVJLYHQLQXQLWVRIN:KP LWKDVWREHFRQYHUWHGLQWRXQLWVRI KSIWPLQN:KP KSIWPLQ 7KHVHSDUDPHWHUV DUHLQGHSHQGHQWRIVFUXEEHUVL]HJHRPHWU\DQGWKHPDQQHURIDSSO\LQJFRQWDFW SRZHU7\SLFDOVFUXEEHUHIILFLHQF\SDUDPHWHUVDUHJLYHQLQ7DEOH>@

ZKHUH D DQG E DUH HPSLULFDO FRQVWDQWV GHSHQGLQJ RQ WKH SDUWLFOH VL]H DQG LWV FKDUDFWHULVWLFVDQGELVGLPHQVLRQOHVVQXPEHUDQGKDVXQLWVRIKSIWPLQ  6LQFH37 LVJLYHQLQXQLWVRIN:KP LWKDVWREHFRQYHUWHGLQWRXQLWVRI KSIWPLQN:KP KSIWPLQ 7KHVHSDUDPHWHUV DUHLQGHSHQGHQWRIVFUXEEHUVL]HJHRPHWU\DQGWKHPDQQHURIDSSO\LQJFRQWDFW SRZHU7\SLFDOVFUXEEHUHIILFLHQF\SDUDPHWHUVDUHJLYHQLQ7DEOH>@

7DEOH  &RPSDULVRQ RI VFUXEEHU HIILFLHQFLHV >@

7DEOH  &RPSDULVRQ RI VFUXEEHU HIILFLHQFLHV >@

6FUXEEHU

9HQWXUL

9HQWXUL DQG F\FORQLF VSUD\

9HQWXULSLSHOLQHDQG F\FORQLF VSUD\

$HURVRO

&RUUHODWLRQSDUDPHWHU D

E

7DOFGXVW





3KRVSKRULFDFLGPLVW





)RXQGU\ FXSROD GXVW



2SHQKHDUWKVWHHOIXUQDFH IXPH



6FUXEEHU

$HURVRO

&RUUHODWLRQSDUDPHWHU D

E

7DOFGXVW





3KRVSKRULFDFLGPLVW







)RXQGU\ FXSROD GXVW







2SHQKHDUWKVWHHOIXUQDFH IXPH





5DZJDVOLPHGXVWDQGVRGDIXPH 



%ODFN OLTXRU UHFRYHU\ IXUQDFH IXPH 



)HUURVLOLFRQ IXUQDFH IXPH





3UHZDVKHG JDV VRGD IXPH +RWIXPHVROXWLRQIRUVFUXEELQJ

 

 

9HQWXUL FRQGHQVDWLRQ VFUXEEHU ZLWK

9HQWXUL

9HQWXUL DQG F\FORQLF VSUD\

9HQWXULSLSHOLQHDQG F\FORQLF VSUD\

5DZJDVOLPHGXVWDQGVRGDIXPH 



%ODFN OLTXRU UHFRYHU\ IXUQDFH IXPH 



)HUURVLOLFRQ IXUQDFH IXPH





3UHZDVKHG JDV VRGD IXPH +RWIXPHVROXWLRQIRUVFUXEELQJ

 

 

9HQWXUL FRQGHQVDWLRQ VFUXEEHU ZLWK

L  PHFKDQLFDO VSUD\ JHQHUDWRU &RSSHUVXOSKDWH





L  PHFKDQLFDO VSUD\ JHQHUDWRU &RSSHUVXOSKDWH





LL  K\GUDXOLF QR]]OHV

&RSSHUVXOSKDWH





LL  K\GUDXOLF QR]]OHV

&RSSHUVXOSKDWH





&\FORQH

7DOFGXVW





&\FORQH

7DOFGXVW





 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 6HOHFWLRQ RI &ROOHFWRUV

 6HOHFWLRQ RI &ROOHFWRUV

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—QHHGVLUULJDWHGWDUJHWHGVFUXEEHUVIROORZHGE\HOHFWURVWDWLF VHSDUDWRUV7DEOHVKRZVDIHZUHFRPPHQGHGFROOHFWRUVIRUSDUWLFXODWHPDWWHU IRUVRPHLQGXVWULHV

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—QHHGVLUULJDWHGWDUJHWHGVFUXEEHUVIROORZHGE\HOHFWURVWDWLF VHSDUDWRUV7DEOHVKRZVDIHZUHFRPPHQGHGFROOHFWRUVIRUSDUWLFXODWHPDWWHU IRUVRPHLQGXVWULHV

7DEOH5HFRPPHQGHGSDUWLFXODWHFROOHFWRUV

7DEOH5HFRPPHQGHGSDUWLFXODWHFROOHFWRUV

,QGXVWU\ RU SURFHVV

3DUWLFXODWHPDWWHU

&ROOHFWLRQGHYLFHV

,QGXVWU\ RU SURFHVV

3DUWLFXODWHPDWWHU

&ROOHFWLRQGHYLFHV

6WHHO

,URQR[LGHGXVWVPRNH

&\FORQHV IDEULF ILOWHUV HOHFWURVWDWLF SUHFLSLWDWRUV ZHW VFUXEEHUV

6WHHO

,URQR[LGHGXVWVPRNH

&\FORQHV IDEULF ILOWHUV HOHFWURVWDWLF SUHFLSLWDWRUV ZHW VFUXEEHUV

0HWDOOXUJLFDOQRQ IHUURXV

6PRNHPHWDOIXPHVRLO JUHDVH

(OHFWURVWDWLF SUHFLSLWDWRUV IDEULF ILOWHUV ZHW VFUXEEHUV

0HWDOOXUJLFDOQRQ IHUURXV

6PRNHPHWDOIXPHVRLO JUHDVH

(OHFWURVWDWLF SUHFLSLWDWRUV IDEULF ILOWHUV ZHW VFUXEEHUV

&HPHQWSKRVSKDWH J\SVXPDOXPLQD SURFHVVLQJ

3URFHVV GXVW

(OHFWURVWDWLF SUHFLSLWDWRUV PHFKDQLFDO FROOHFWRUV IDEULF ILOWHUV ZHW VFUXEEHUV

&HPHQWSKRVSKDWH J\SVXPDOXPLQD SURFHVVLQJ

3URFHVV GXVW

(OHFWURVWDWLF SUHFLSLWDWRUV PHFKDQLFDO FROOHFWRUV IDEULF ILOWHUV ZHW VFUXEEHUV

.UDIWSDSHUPLOOV

&KHPLFDOGXVWV

(OHFWURVWDWLF SUHFLSLWDWRUV YHQWXUL VFUXEEHUV

.UDIWSDSHUPLOOV

&KHPLFDOGXVWV

(OHFWURVWDWLF SUHFLSLWDWRUV YHQWXUL VFUXEEHUV

6XOSKXULF SKRVSKRULF QLWULF DFLG PDQXIDFWXUH

$FLGPLVWGXVW

(OHFWURVWDWLF SUHFLSLWDWRUV PHVKPLVWHOLPLQDWRUV

6XOSKXULF SKRVSKRULF QLWULF DFLG PDQXIDFWXUH

$FLGPLVWGXVW

(OHFWURVWDWLF SUHFLSLWDWRUV PHVKPLVWHOLPLQDWRUV

3HWUROHXPUHILQHULHV

&DWDO\VWGXVWDVKIURPVOXGJH

+LJKHIIHFLFLHQF\ F\FORQHV HOHFWURVWDWLF SUHFLSLWDWRUV VFUXEELQJ WRZHUV

3HWUROHXPUHILQHULHV

&DWDO\VWGXVWDVKIURPVOXGJH

+LJKHIIHFLFLHQF\ F\FORQHV HOHFWURVWDWLF SUHFLSLWDWRUV VFUXEELQJ WRZHUV

3RZHU JHQHUDWLRQ

&RDOGXVWIO\DVK

0HFKDQLFDO FROOHFWRUV HOHFWURVWDWLF SUHFLSLWDWRUV

3RZHU JHQHUDWLRQ

&RDOGXVWIO\DVK

0HFKDQLFDO FROOHFWRUV HOHFWURVWDWLF SUHFLSLWDWRUV

 &HQWULIXJDO 6FUXEEHUV

 &HQWULIXJDO 6FUXEEHUV

)LJXUH  VKRZV WKH VFKHPDWLF GLDJUDP RI D FHQWULIXJDO VFUXEEHU ,W LV DOVR NQRZQDVF\FORQHVFUXEEHU$FHQWULIXJDOVFUXEEHUKDVDVZLUOLQJDFWLRQMXVWOLNH DGU\XQLWZLWKWKHSURYLVLRQIRULQWURGXFLQJZDWHUVSUD\V7KHVSUD\LVLQWURGXFHG IURPWKHRXWVLGHZDOOLQWRDFHQWUDOO\SODFHGGLVSHUVLQJFROXPQRUPRUHVLPSO\ IURPWKHWRS%RWKYDULDWLRQVDUHFRPPRQO\HPSOR\HGWRFROOHFWWKHGLVSHUVRLGV DQGSUHYHQWUHHQWUDLQPHQW

)LJXUH  VKRZV WKH VFKHPDWLF GLDJUDP RI D FHQWULIXJDO VFUXEEHU ,W LV DOVR NQRZQDVF\FORQHVFUXEEHU$FHQWULIXJDOVFUXEEHUKDVDVZLUOLQJDFWLRQMXVWOLNH DGU\XQLWZLWKWKHSURYLVLRQIRULQWURGXFLQJZDWHUVSUD\V7KHVSUD\LVLQWURGXFHG IURPWKHRXWVLGHZDOOLQWRDFHQWUDOO\SODFHGGLVSHUVLQJFROXPQRUPRUHVLPSO\ IURPWKHWRS%RWKYDULDWLRQVDUHFRPPRQO\HPSOR\HGWRFROOHFWWKHGLVSHUVRLGV DQGSUHYHQWUHHQWUDLQPHQW

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 6HOHFWLRQ RI &ROOHFWRUV

 6HOHFWLRQ RI &ROOHFWRUV

6HSDUDWHGHGLFDWHGJDVFOHDQLQJHTXLSPHQWDUHGHVLJQHGIRUFRDUVHILQHDQGVXSHUILQH GXVWV7KHVHOHFWLRQRIDSDUWLFXODWHFROOHFWRULVEDVLFDOO\DFRPSURPLVHEHWZHHQ WKH VSHFLILF HPLVVLRQ OLPLWDWLRQV DFWXDO RSHUDWLQJ HIILFLHQF\ SUHVVXUH GURS DQG FRVWV4XLWHRIWHQRQHKDVWRFRQVLGHUFKHPLFDOFKDUDFWHULVWLFVRIWKHSDUWLFXODWHV VROXELOLW\DVSHFWVLQIODPPDELOLW\HWF &RDUVHLQVROXEOHSDUWLFOHVDUHEHVWKDQGOHGE\F\FORQLFVSUD\ZLWKVHSDUDWRUV 3DUWLFOHUHPRYDOHIILFLHQF\RILVSRVVLEOHLQVXFKVHSDUDWRUV)LQHSDUWLFOHV DQGDHURVROVFRQWDLQLQJFRUURVLYHDFLGVVXFKDVSKRVSKRULFDFLGRUVXOSKXULFDFLG FDQEHFRQYHQLHQWO\KDQGOHGE\YHQWXULFRQGHQVDWLRQVFUXEEHU6ROXEOHVDOWVDUH DOVRHDVLO\DPHQDEOHWRYHQWXULVFUXEEHUZLWKPHFKDQLFDOVSUD\JHQHUDWRUV)LQH GXVWVPDOOHUWKDQ—QHHGVLUULJDWHGWDUJHWHGVFUXEEHUVIROORZHGE\HOHFWURVWDWLF VHSDUDWRUV7DEOHVKRZVDIHZUHFRPPHQGHGFROOHFWRUVIRUSDUWLFXODWHPDWWHU IRUVRPHLQGXVWULHV

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—QHHGVLUULJDWHGWDUJHWHGVFUXEEHUVIROORZHGE\HOHFWURVWDWLF VHSDUDWRUV7DEOHVKRZVDIHZUHFRPPHQGHGFROOHFWRUVIRUSDUWLFXODWHPDWWHU IRUVRPHLQGXVWULHV

7DEOH5HFRPPHQGHGSDUWLFXODWHFROOHFWRUV

7DEOH5HFRPPHQGHGSDUWLFXODWHFROOHFWRUV

,QGXVWU\ RU SURFHVV

3DUWLFXODWHPDWWHU

&ROOHFWLRQGHYLFHV

,QGXVWU\ RU SURFHVV

3DUWLFXODWHPDWWHU

&ROOHFWLRQGHYLFHV

6WHHO

,URQR[LGHGXVWVPRNH

&\FORQHV IDEULF ILOWHUV HOHFWURVWDWLF SUHFLSLWDWRUV ZHW VFUXEEHUV

6WHHO

,URQR[LGHGXVWVPRNH

&\FORQHV IDEULF ILOWHUV HOHFWURVWDWLF SUHFLSLWDWRUV ZHW VFUXEEHUV

0HWDOOXUJLFDOQRQ IHUURXV

6PRNHPHWDOIXPHVRLO JUHDVH

(OHFWURVWDWLF SUHFLSLWDWRUV IDEULF ILOWHUV ZHW VFUXEEHUV

0HWDOOXUJLFDOQRQ IHUURXV

6PRNHPHWDOIXPHVRLO JUHDVH

(OHFWURVWDWLF SUHFLSLWDWRUV IDEULF ILOWHUV ZHW VFUXEEHUV

&HPHQWSKRVSKDWH J\SVXPDOXPLQD SURFHVVLQJ

3URFHVV GXVW

(OHFWURVWDWLF SUHFLSLWDWRUV PHFKDQLFDO FROOHFWRUV IDEULF ILOWHUV ZHW VFUXEEHUV

&HPHQWSKRVSKDWH J\SVXPDOXPLQD SURFHVVLQJ

3URFHVV GXVW

(OHFWURVWDWLF SUHFLSLWDWRUV PHFKDQLFDO FROOHFWRUV IDEULF ILOWHUV ZHW VFUXEEHUV

.UDIWSDSHUPLOOV

&KHPLFDOGXVWV

(OHFWURVWDWLF SUHFLSLWDWRUV YHQWXUL VFUXEEHUV

.UDIWSDSHUPLOOV

&KHPLFDOGXVWV

(OHFWURVWDWLF SUHFLSLWDWRUV YHQWXUL VFUXEEHUV

6XOSKXULF SKRVSKRULF QLWULF DFLG PDQXIDFWXUH

$FLGPLVWGXVW

(OHFWURVWDWLF SUHFLSLWDWRUV PHVKPLVWHOLPLQDWRUV

6XOSKXULF SKRVSKRULF QLWULF DFLG PDQXIDFWXUH

$FLGPLVWGXVW

(OHFWURVWDWLF SUHFLSLWDWRUV PHVKPLVWHOLPLQDWRUV

3HWUROHXPUHILQHULHV

&DWDO\VWGXVWDVKIURPVOXGJH

+LJKHIIHFLFLHQF\ F\FORQHV HOHFWURVWDWLF SUHFLSLWDWRUV VFUXEELQJ WRZHUV

3HWUROHXPUHILQHULHV

&DWDO\VWGXVWDVKIURPVOXGJH

+LJKHIIHFLFLHQF\ F\FORQHV HOHFWURVWDWLF SUHFLSLWDWRUV VFUXEELQJ WRZHUV

3RZHU JHQHUDWLRQ

&RDOGXVWIO\DVK

0HFKDQLFDO FROOHFWRUV HOHFWURVWDWLF SUHFLSLWDWRUV

3RZHU JHQHUDWLRQ

&RDOGXVWIO\DVK

0HFKDQLFDO FROOHFWRUV HOHFWURVWDWLF SUHFLSLWDWRUV

 &HQWULIXJDO 6FUXEEHUV

 &HQWULIXJDO 6FUXEEHUV

)LJXUH  VKRZV WKH VFKHPDWLF GLDJUDP RI D FHQWULIXJDO VFUXEEHU ,W LV DOVR NQRZQDVF\FORQHVFUXEEHU$FHQWULIXJDOVFUXEEHUKDVDVZLUOLQJDFWLRQMXVWOLNH DGU\XQLWZLWKWKHSURYLVLRQIRULQWURGXFLQJZDWHUVSUD\V7KHVSUD\LVLQWURGXFHG IURPWKHRXWVLGHZDOOLQWRDFHQWUDOO\SODFHGGLVSHUVLQJFROXPQRUPRUHVLPSO\ IURPWKHWRS%RWKYDULDWLRQVDUHFRPPRQO\HPSOR\HGWRFROOHFWWKHGLVSHUVRLGV DQGSUHYHQWUHHQWUDLQPHQW

)LJXUH  VKRZV WKH VFKHPDWLF GLDJUDP RI D FHQWULIXJDO VFUXEEHU ,W LV DOVR NQRZQDVF\FORQHVFUXEEHU$FHQWULIXJDOVFUXEEHUKDVDVZLUOLQJDFWLRQMXVWOLNH DGU\XQLWZLWKWKHSURYLVLRQIRULQWURGXFLQJZDWHUVSUD\V7KHVSUD\LVLQWURGXFHG IURPWKHRXWVLGHZDOOLQWRDFHQWUDOO\SODFHGGLVSHUVLQJFROXPQRUPRUHVLPSO\ IURPWKHWRS%RWKYDULDWLRQVDUHFRPPRQO\HPSOR\HGWRFROOHFWWKHGLVSHUVRLGV DQGSUHYHQWUHHQWUDLQPHQW

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV

Cleaned gas



Cleaned gas

Straightening vanes

Straightening vanes

Core disc

Core disc

Spray manifold

Spray manifold

Tangential gas inlet

Tangential gas inlet

Swinging inlet damper

Swinging inlet damper

Dirty gas inlet

Water outlet

Dirty gas inlet

Water inlet

Water outlet

Water inlet

)LJ&HQWULIXJDOVFUXEEHU

)LJ&HQWULIXJDOVFUXEEHU

$ZHWF\FORQHH[KLELWVKLJKHUHIILFLHQF\WKDQDGU\F\FORQHDVLWUHGXFHVUH HQWUDLQPHQW 7KH SULQFLSDO PHFKDQLVPV IRU SDUWLFXODWH FROOHFWLRQ DUH ZHW LPSLQJHPHQWDQGLQHUWLDOLPSDFW7KHFROOHFWLRQHIILFLHQF\RIDFHQWULIXJDOVFUXEEHU LVJLYHQE\

$ZHWF\FORQHH[KLELWVKLJKHUHIILFLHQF\WKDQDGU\F\FORQHDVLWUHGXFHVUH HQWUDLQPHQW 7KH SULQFLSDO PHFKDQLVPV IRU SDUWLFXODWH FROOHFWLRQ DUH ZHW LPSLQJHPHQWDQGLQHUWLDOLPSDFW7KHFROOHFWLRQHIILFLHQF\RIDFHQWULIXJDOVFUXEEHU LVJLYHQE\

K

  & Q 9/ & Q 9R



ª '1U 4V  UG º    H[S « »  S4 S ¼» ¬« & QY  1 G UG '



ZKHUH&Q9/DQG&Q9RDUHWKHQXPEHUGHQVLW\RISDUWLFXODWHVSHUXQLWDUHDDWWKH ERWWRPDQGWRSRIWKHFHQWULIXJDOWRZHU'1SLVWKHUDWHRISDUWLFXODWHFROOHFWLRQE\ WKH GURSV ' LV WKH GLIIXVLRQ RI WKH SDUWLFOH FPV  1G LV WKH QXPEHU RI GURSV FROOHFWLQJWKHSDUWLFXODWHVDQG4VLVWKHYROXPHWULFJDVIORZUDWH &HQWULIXJDOVFUXEEHUVH[KLELWKLJKHUFROOHFWLRQHIILFLHQF\FRPSDUHGWRVLPSOH VSUD\WRZHUVEHFDXVHWKHVSUD\DFWVRQWKHSDUWLFOHVLQWKHRXWHUYHUWH[DQGWKH GURSOHWVDUHLPPHGLDWHO\WKURZQRXWZDUGDJDLQVWWKHLQQHUZDOORIWKHF\FORQH 7\SLFDOSDUWLFOHFDSWXUHGLDPHWHUVDUH±—PDQGWKHSDUWLFOHFROOHFWLRQHIILFLHQF\ UDQJHVIURP±7KHFHQWULIXJDODFFHOHUDWLRQPD\UDQJHIURP±J,Q DFHQWULIXJDOILHOGRIJWKHPRVWHIIHFWLYHGURSVL]HLV—P6PDOOHUGURSOHWV JHWHQWUDLQHGLQWKHJDVVWUHDP

3DUWLFXODWH&RQWURO7HFKQRORJLHV

K

  & Q 9/ & Q 9R



ª '1U 4V  UG º    H[S « »  S4 S ¼» ¬« & QY  1 G UG '



ZKHUH&Q9/DQG&Q9RDUHWKHQXPEHUGHQVLW\RISDUWLFXODWHVSHUXQLWDUHDDWWKH ERWWRPDQGWRSRIWKHFHQWULIXJDOWRZHU'1SLVWKHUDWHRISDUWLFXODWHFROOHFWLRQE\ WKH GURSV ' LV WKH GLIIXVLRQ RI WKH SDUWLFOH FPV  1G LV WKH QXPEHU RI GURSV FROOHFWLQJWKHSDUWLFXODWHVDQG4VLVWKHYROXPHWULFJDVIORZUDWH &HQWULIXJDOVFUXEEHUVH[KLELWKLJKHUFROOHFWLRQHIILFLHQF\FRPSDUHGWRVLPSOH VSUD\WRZHUVEHFDXVHWKHVSUD\DFWVRQWKHSDUWLFOHVLQWKHRXWHUYHUWH[DQGWKH GURSOHWVDUHLPPHGLDWHO\WKURZQRXWZDUGDJDLQVWWKHLQQHUZDOORIWKHF\FORQH 7\SLFDOSDUWLFOHFDSWXUHGLDPHWHUVDUH±—PDQGWKHSDUWLFOHFROOHFWLRQHIILFLHQF\ UDQJHVIURP±7KHFHQWULIXJDODFFHOHUDWLRQPD\UDQJHIURP±J,Q DFHQWULIXJDOILHOGRIJWKHPRVWHIIHFWLYHGURSVL]HLV—P6PDOOHUGURSOHWV JHWHQWUDLQHGLQWKHJDVVWUHDP



3DUWLFXODWH&RQWURO7HFKQRORJLHV

Cleaned gas



Cleaned gas

Straightening vanes

Straightening vanes

Core disc

Core disc

Spray manifold

Spray manifold

Tangential gas inlet

Tangential gas inlet

Swinging inlet damper

Swinging inlet damper

Dirty gas inlet

Water outlet

Dirty gas inlet

Water inlet

Water outlet

Water inlet

)LJ&HQWULIXJDOVFUXEEHU

)LJ&HQWULIXJDOVFUXEEHU

$ZHWF\FORQHH[KLELWVKLJKHUHIILFLHQF\WKDQDGU\F\FORQHDVLWUHGXFHVUH HQWUDLQPHQW 7KH SULQFLSDO PHFKDQLVPV IRU SDUWLFXODWH FROOHFWLRQ DUH ZHW LPSLQJHPHQWDQGLQHUWLDOLPSDFW7KHFROOHFWLRQHIILFLHQF\RIDFHQWULIXJDOVFUXEEHU LVJLYHQE\

$ZHWF\FORQHH[KLELWVKLJKHUHIILFLHQF\WKDQDGU\F\FORQHDVLWUHGXFHVUH HQWUDLQPHQW 7KH SULQFLSDO PHFKDQLVPV IRU SDUWLFXODWH FROOHFWLRQ DUH ZHW LPSLQJHPHQWDQGLQHUWLDOLPSDFW7KHFROOHFWLRQHIILFLHQF\RIDFHQWULIXJDOVFUXEEHU LVJLYHQE\

K

  & Q 9/ & Q 9R



ª '1U 4V  UG º    H[S « »  S4 S »¼ «¬ & QY  1 G UG '



ZKHUH&Q9/DQG&Q9RDUHWKHQXPEHUGHQVLW\RISDUWLFXODWHVSHUXQLWDUHDDWWKH ERWWRPDQGWRSRIWKHFHQWULIXJDOWRZHU'1SLVWKHUDWHRISDUWLFXODWHFROOHFWLRQE\ WKH GURSV ' LV WKH GLIIXVLRQ RI WKH SDUWLFOH FPV  1G LV WKH QXPEHU RI GURSV FROOHFWLQJWKHSDUWLFXODWHVDQG4VLVWKHYROXPHWULFJDVIORZUDWH &HQWULIXJDOVFUXEEHUVH[KLELWKLJKHUFROOHFWLRQHIILFLHQF\FRPSDUHGWRVLPSOH VSUD\WRZHUVEHFDXVHWKHVSUD\DFWVRQWKHSDUWLFOHVLQWKHRXWHUYHUWH[DQGWKH GURSOHWVDUHLPPHGLDWHO\WKURZQRXWZDUGDJDLQVWWKHLQQHUZDOORIWKHF\FORQH 7\SLFDOSDUWLFOHFDSWXUHGLDPHWHUVDUH±—PDQGWKHSDUWLFOHFROOHFWLRQHIILFLHQF\ UDQJHVIURP±7KHFHQWULIXJDODFFHOHUDWLRQPD\UDQJHIURP±J,Q DFHQWULIXJDOILHOGRIJWKHPRVWHIIHFWLYHGURSVL]HLV—P6PDOOHUGURSOHWV JHWHQWUDLQHGLQWKHJDVVWUHDP

K

  & Q 9/ & Q 9R



ª '1U 4V  UG º    H[S « »  S4 S »¼ «¬ & QY  1 G UG '



ZKHUH&Q9/DQG&Q9RDUHWKHQXPEHUGHQVLW\RISDUWLFXODWHVSHUXQLWDUHDDWWKH ERWWRPDQGWRSRIWKHFHQWULIXJDOWRZHU'1SLVWKHUDWHRISDUWLFXODWHFROOHFWLRQE\ WKH GURSV ' LV WKH GLIIXVLRQ RI WKH SDUWLFOH FPV  1G LV WKH QXPEHU RI GURSV FROOHFWLQJWKHSDUWLFXODWHVDQG4VLVWKHYROXPHWULFJDVIORZUDWH &HQWULIXJDOVFUXEEHUVH[KLELWKLJKHUFROOHFWLRQHIILFLHQF\FRPSDUHGWRVLPSOH VSUD\WRZHUVEHFDXVHWKHVSUD\DFWVRQWKHSDUWLFOHVLQWKHRXWHUYHUWH[DQGWKH GURSOHWVDUHLPPHGLDWHO\WKURZQRXWZDUGDJDLQVWWKHLQQHUZDOORIWKHF\FORQH 7\SLFDOSDUWLFOHFDSWXUHGLDPHWHUVDUH±—PDQGWKHSDUWLFOHFROOHFWLRQHIILFLHQF\ UDQJHVIURP±7KHFHQWULIXJDODFFHOHUDWLRQPD\UDQJHIURP±J,Q DFHQWULIXJDOILHOGRIJWKHPRVWHIIHFWLYHGURSVL]HLV—P6PDOOHUGURSOHWV JHWHQWUDLQHGLQWKHJDVVWUHDP

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

3DFNHG%HG6FUXEEHUV

3DFNHG%HG6FUXEEHUV

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

0HFKDQLFDO6FUXEEHUV

0HFKDQLFDO6FUXEEHUV

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

(QYLURQPHQWDO6LJQLILFDQFHRI6FUXEEHUV

(QYLURQPHQWDO6LJQLILFDQFHRI6FUXEEHUV

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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

3DFNHG%HG6FUXEEHUV

3DFNHG%HG6FUXEEHUV

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

0HFKDQLFDO6FUXEEHUV

0HFKDQLFDO6FUXEEHUV

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

(QYLURQPHQWDO6LJQLILFDQFHRI6FUXEEHUV

(QYLURQPHQWDO6LJQLILFDQFHRI6FUXEEHUV

:HWVFUXEEHUVDUHKLJKO\XVHIXOZKLOHKDQGOLQJFRPEXVWLEOHSDUWLFOHVDQGLQIODPPDEOH JDVHV6XFKVLWXDWLRQVDULVHTXLWHRIWHQLQSHWURFKHPLFDOLQGXVWULHV7KH\DUHDOVR URXWLQHO\HPSOR\HGLQWKHUPDOSRZHUSODQWV7KHUPDOSRZHUSODQWHPLVVLRQVLQFOXGH SROOXWDQW JDVHV VXFK DV FDUERQ PRQR[LGH VXOSKXU GLR[LGH QLWURJHQ R[LGHV DQG RWKHUJDVHVDORQJZLWKFRQVLGHUDEOHTXDQWLWLHVRISDUWLFXODWHPDWWHU(QYLURQPHQWDO UHJXODWLRQVVWLSXODWHWKDWWKHFRQFHQWUDWLRQVRIWKHVHHPLWWHGJDVHVPXVWEHEHORZ WKHVSHFLILHGOLPLWV:HWVFUXEEHUVDUHQHFHVVDU\WRGLVVROYHWKHVHJDVHVWKHUHE\

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

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV

Gas outlet

Gas outlet

Liquid inlet

Liquid inlet

Packing

Packing

Gas inlet

Gas inlet

Liquid outlet

Liquid outlet

(a)

(a)

Liquid in

Gas in



Liquid in

Gas in

Gas out

gas flow

Gas out

gas flow

Liquid flow

(b)

Liquid flow

(b)

Bed

Bed

)LJ  D  &RXQWHUFXUUHQW SDFNHG WRZHU DQG E  &URVVIORZ SDFNHG WRZHU

)LJ  D  &RXQWHUFXUUHQW SDFNHG WRZHU DQG E  &URVVIORZ SDFNHG WRZHU

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

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV

Gas outlet

Gas outlet

Liquid inlet

Liquid inlet

Packing

Packing

Gas inlet

Gas inlet

Liquid outlet

Liquid outlet

(a)

(a)

Liquid in

Gas in



Liquid in

Gas out

gas flow

Gas in

Gas out

gas flow

Liquid flow

(b)

Bed

Liquid flow

(b)

Bed

)LJ  D  &RXQWHUFXUUHQW SDFNHG WRZHU DQG E  &URVVIORZ SDFNHG WRZHU

)LJ  D  &RXQWHUFXUUHQW SDFNHG WRZHU DQG E  &URVVIORZ SDFNHG WRZHU

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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Clean gas out

Clean gas out

Liquid in

Liquid in

Perforated plate

Perforated plate

Baffle

Baffle

Liquid

Liquid

Plate

Gas in

Plate

Gas in

E

E

Slurry out

Slurry out

D

D

)LJD %XEEOHFDSWRZHUE ,PSLQJHPHQWEDIIOHSODWHVFUXEEHU

)LJD %XEEOHFDSWRZHUE ,PSLQJHPHQWEDIIOHSODWHVFUXEEHU

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

 (TXLSPHQW 6HOHFWLRQ

 (TXLSPHQW 6HOHFWLRQ

7KHIDFWRUVJRYHUQLQJWKHFKRLFHRIDSDUWLFXODWHFROOHFWRUDUHEHZLOGHULQJIRUD EHJLQQHU$PHWKRGLFDODSSURDFKLVWKHUHIRUHQHFHVVDU\WRXQGHUVWDQGDQGHYDOXDWH

7KHIDFWRUVJRYHUQLQJWKHFKRLFHRIDSDUWLFXODWHFROOHFWRUDUHEHZLOGHULQJIRUD EHJLQQHU$PHWKRGLFDODSSURDFKLVWKHUHIRUHQHFHVVDU\WRXQGHUVWDQGDQGHYDOXDWH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Clean gas out

Clean gas out

Liquid in

Liquid in

Perforated plate

Perforated plate

Baffle

Baffle

Liquid

Liquid

Plate

Gas in

Plate

Gas in

E

E

Slurry out

Slurry out

D

D

)LJD %XEEOHFDSWRZHUE ,PSLQJHPHQWEDIIOHSODWHVFUXEEHU

)LJD %XEEOHFDSWRZHUE ,PSLQJHPHQWEDIIOHSODWHVFUXEEHU

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

 (TXLSPHQW 6HOHFWLRQ

 (TXLSPHQW 6HOHFWLRQ

7KHIDFWRUVJRYHUQLQJWKHFKRLFHRIDSDUWLFXODWHFROOHFWRUDUHEHZLOGHULQJIRUD EHJLQQHU$PHWKRGLFDODSSURDFKLVWKHUHIRUHQHFHVVDU\WRXQGHUVWDQGDQGHYDOXDWH

7KHIDFWRUVJRYHUQLQJWKHFKRLFHRIDSDUWLFXODWHFROOHFWRUDUHEHZLOGHULQJIRUD EHJLQQHU$PHWKRGLFDODSSURDFKLVWKHUHIRUHQHFHVVDU\WRXQGHUVWDQGDQGHYDOXDWH

3DUWLFXODWH&RQWURO7HFKQRORJLHV



3DUWLFXODWH&RQWURO7HFKQRORJLHV



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— WKDWQHHGVWREHUHPRYHGDQGWKHGHVLUHGHIILFLHQF\ RIVHSDUDWLRQ7KHIROORZLQJVFKHPHLOOXVWUDWHVWKHSRLQW

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— WKDWQHHGVWREHUHPRYHGDQGWKHGHVLUHGHIILFLHQF\ RIVHSDUDWLRQ7KHIROORZLQJVFKHPHLOOXVWUDWHVWKHSRLQW

7DEOH*XLGHOLQHVIRUSDUWLFXODWHFRQWUROHTXLSPHQWVHOHFWLRQ

7DEOH*XLGHOLQHVIRUSDUWLFXODWHFRQWUROHTXLSPHQWVHOHFWLRQ

0LQLPXPSDUWLFOH VL]H— ! !  ! ! !

(IILFLHQF\

  !   

7HFKQLTXH

0LQLPXPSDUWLFOH VL]H—

9HQWXUL (63 %DJILOWHU &\FORQLFVHSDUDWRU,PSLQJHPHQWVHSDUDWRU 6SUD\FKDPEHU *UDYLWDWLRQDOILOWHU

! !  ! ! !

(IILFLHQF\

  !   

7HFKQLTXH

9HQWXUL (63 %DJILOWHU &\FORQLFVHSDUDWRU,PSLQJHPHQWVHSDUDWRU 6SUD\FKDPEHU *UDYLWDWLRQDOILOWHU

4XLWHRIWHQFKHPLFDODQGSK\VLFDOSURSHUWLHVDQGTXDQWLWLHVRIHPLWWHGJDVHV WKHPVHOYHV GHFLGH WKH WHFKQLTXH )RU H[DPSOH HPLVVLRQ JDVHV FRQWDLQLQJ LQIODPPDEOHSDUWLFXODWHVPDQGDWHWKHXVHRIVFUXEEHUV\VWHPV6LPLODUO\WKHQHHG IRUHFRQRPLFUHFRYHU\RIWKHSDUWLFXODWHVLQFHPHQWLQGXVWULHVMXVWLILHVWKHXVHRI HOHFWURVWDWLFSUHFLSLWDWRUVHWF7KHUHIRUHNQRZOHGJHRIWKHSK\VLFDODQGFKHPLFDO SURSHUWLHV RI WKH SDUWLFXODWHV LV D PXVW IRU WKH VHOHFWLRQ RI LQWHOOLJHQW SURFHVV WHFKQRORJ\

4XLWHRIWHQFKHPLFDODQGSK\VLFDOSURSHUWLHVDQGTXDQWLWLHVRIHPLWWHGJDVHV WKHPVHOYHV GHFLGH WKH WHFKQLTXH )RU H[DPSOH HPLVVLRQ JDVHV FRQWDLQLQJ LQIODPPDEOHSDUWLFXODWHVPDQGDWHWKHXVHRIVFUXEEHUV\VWHPV6LPLODUO\WKHQHHG IRUHFRQRPLFUHFRYHU\RIWKHSDUWLFXODWHVLQFHPHQWLQGXVWULHVMXVWLILHVWKHXVHRI HOHFWURVWDWLFSUHFLSLWDWRUVHWF7KHUHIRUHNQRZOHGJHRIWKHSK\VLFDODQGFKHPLFDO SURSHUWLHV RI WKH SDUWLFXODWHV LV D PXVW IRU WKH VHOHFWLRQ RI LQWHOOLJHQW SURFHVV WHFKQRORJ\

48(67,216

48(67,216

 ([SODLQ WKH SULQFLSOH FRQVWUXFWLRQ DQG ZRUNLQJ RI D VHWWOLQJ FKDPEHU 'HULYHDQH[SUHVVLRQIRUWKHHIILFLHQF\RIDEDIIOHW\SHVHWWOLQJFKDPEHU

3DUWLFXODWH&RQWURO7HFKQRORJLHV

 ([SODLQ WKH SULQFLSOH FRQVWUXFWLRQ DQG ZRUNLQJ RI D VHWWOLQJ FKDPEHU 'HULYHDQH[SUHVVLRQIRUWKHHIILFLHQF\RIDEDIIOHW\SHVHWWOLQJFKDPEHU



3DUWLFXODWH&RQWURO7HFKQRORJLHV



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— WKDWQHHGVWREHUHPRYHGDQGWKHGHVLUHGHIILFLHQF\ RIVHSDUDWLRQ7KHIROORZLQJVFKHPHLOOXVWUDWHVWKHSRLQW

DVFUXEEHUXQLW7KHUHTXLUHGLQIRUPDWLRQFDQEHFODVVLILHGLQWRWKUHHFDWHJRULHV FKHPLFDOSURSHUWLHVSK\VLFDOSURSHUWLHVDQGRWKHUUHODWHGDVSHFWV &KHPLFDO SURSHUWLHV RI JDVHV DQG SDUWLFOHV LQFOXGH FRPSRVLWLRQ DQG FRQFHQWUDWLRQVRIWKHJDVHVSKDVHVRIWKHFRPSRQHQWVVROXELOLW\FRPEXVWLELOLW\ UHDFWLYLW\ WR[LFLW\ K\JURVFRSLFLW\ DJJORPHUDWLQJ SURSHUWLHV HWF ZKLFK QHHG FRQVLGHUDWLRQ ,PSRUWDQW SK\VLFDO SURSHUWLHV LQFOXGH SDUWLFXODWH VL]HV DQG VKDSHV GHQVLW\ ORDGLQJKXPLGLW\IORZUDWHRIWKHFDUULHUJDVDQGIORZYDULDWLRQVDOORZDEOHSUHVVXUH GURSHWFWRDFKLHYHGHVLUDEOHFROOHFWLRQHIILFLHQF\ 2WKHULQIRUPDWLRQLVDOVRUHTXLUHGVXFKDVDOORZDEOHFRQFHQWUDWLRQVDVGLFWDWHG E\UHJXODWRU\DJHQFLHVHFRQRPLFVRILQVWDOODWLRQDQGRSHUDWLRQDYDLODELOLW\RIVSDFH HWF 8VXDOO\WKHFKRLFHRIDSDUWLFXODUFRQWUROHTXLSPHQWLVDFRPSURPLVHEDVHG RQWKHFRVWSRZHUFRQVXPSWLRQDQGPDLQWHQDQFHRSHUDWLRQV,WLVQRWSRVVLEOHWR IUDPHH[DFWJXLGHOLQHVUHJDUGLQJWKHVHDVSHFWV+RZHYHUHPSLULFDOJXLGHOLQHVDUH DYDLODEOHIRUFKRRVLQJDSDUWLFXODUSDUWLFXODWHFRQWUROWHFKQLTXH7KHVHDUHEDVHG RQWKHPLQLPXPSDUWLFOHVL]H— WKDWQHHGVWREHUHPRYHGDQGWKHGHVLUHGHIILFLHQF\ RIVHSDUDWLRQ7KHIROORZLQJVFKHPHLOOXVWUDWHVWKHSRLQW

7DEOH*XLGHOLQHVIRUSDUWLFXODWHFRQWUROHTXLSPHQWVHOHFWLRQ

7DEOH*XLGHOLQHVIRUSDUWLFXODWHFRQWUROHTXLSPHQWVHOHFWLRQ

0LQLPXPSDUWLFOH VL]H— ! !  ! ! !

(IILFLHQF\

  !   

7HFKQLTXH

0LQLPXPSDUWLFOH VL]H—

9HQWXUL (63 %DJILOWHU &\FORQLFVHSDUDWRU,PSLQJHPHQWVHSDUDWRU 6SUD\FKDPEHU *UDYLWDWLRQDOILOWHU

! !  ! ! !

(IILFLHQF\

  !   

7HFKQLTXH

9HQWXUL (63 %DJILOWHU &\FORQLFVHSDUDWRU,PSLQJHPHQWVHSDUDWRU 6SUD\FKDPEHU *UDYLWDWLRQDOILOWHU

4XLWHRIWHQFKHPLFDODQGSK\VLFDOSURSHUWLHVDQGTXDQWLWLHVRIHPLWWHGJDVHV WKHPVHOYHV GHFLGH WKH WHFKQLTXH )RU H[DPSOH HPLVVLRQ JDVHV FRQWDLQLQJ LQIODPPDEOHSDUWLFXODWHVPDQGDWHWKHXVHRIVFUXEEHUV\VWHPV6LPLODUO\WKHQHHG IRUHFRQRPLFUHFRYHU\RIWKHSDUWLFXODWHVLQFHPHQWLQGXVWULHVMXVWLILHVWKHXVHRI HOHFWURVWDWLFSUHFLSLWDWRUVHWF7KHUHIRUHNQRZOHGJHRIWKHSK\VLFDODQGFKHPLFDO SURSHUWLHV RI WKH SDUWLFXODWHV LV D PXVW IRU WKH VHOHFWLRQ RI LQWHOOLJHQW SURFHVV WHFKQRORJ\

4XLWHRIWHQFKHPLFDODQGSK\VLFDOSURSHUWLHVDQGTXDQWLWLHVRIHPLWWHGJDVHV WKHPVHOYHV GHFLGH WKH WHFKQLTXH )RU H[DPSOH HPLVVLRQ JDVHV FRQWDLQLQJ LQIODPPDEOHSDUWLFXODWHVPDQGDWHWKHXVHRIVFUXEEHUV\VWHPV6LPLODUO\WKHQHHG IRUHFRQRPLFUHFRYHU\RIWKHSDUWLFXODWHVLQFHPHQWLQGXVWULHVMXVWLILHVWKHXVHRI HOHFWURVWDWLFSUHFLSLWDWRUVHWF7KHUHIRUHNQRZOHGJHRIWKHSK\VLFDODQGFKHPLFDO SURSHUWLHV RI WKH SDUWLFXODWHV LV D PXVW IRU WKH VHOHFWLRQ RI LQWHOOLJHQW SURFHVV WHFKQRORJ\

48(67,216

48(67,216

 ([SODLQ WKH SULQFLSOH FRQVWUXFWLRQ DQG ZRUNLQJ RI D VHWWOLQJ FKDPEHU 'HULYHDQH[SUHVVLRQIRUWKHHIILFLHQF\RIDEDIIOHW\SHVHWWOLQJFKDPEHU

 ([SODLQ WKH SULQFLSOH FRQVWUXFWLRQ DQG ZRUNLQJ RI D VHWWOLQJ FKDPEHU 'HULYHDQH[SUHVVLRQIRUWKHHIILFLHQF\RIDEDIIOHW\SHVHWWOLQJFKDPEHU

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ž&  Q î±NJPV (VWLPDWHWKHFROOHFWLRQHIILFLHQF\IRUSDUWLFOHV RI —DQG—IRUODPLQDUDQGPL[HGIORZ(VWLPDWHWKHUHVLGHQFHWLPH DQGGLVWDQFHRIVHWWOLQJIRUWKHVHSDUWLFOHV  ,QDVWDQGDUGFRQYHQWLRQDOF\FORQHDLUVWUHDPLVPVDQGWKHGLDPHWHU RIWKHF\FORQHLVP7KHH[LWWHPSHUDWXUHLVƒ&DQGWKHVSHFLILF JUDYLW\RIWKHSDUWLFOHLV:KDWZRXOGEHWKHGLDPHWHUDQGWHUPLQDO VHWWOLQJYHORFLW\RIWKHSDUWLFOHLIUHPRYDOLVDFKLHYHG"$VVXPHWKDW EHTXDOVUD NJPDQG Q LVî±NJPVDWž&  $SDUWLFOHVWUHDPKDVDQGPSDUWLFOHVRIDQGSURSRUWLRQ UHVSHFWLYHO\7KHF\FORQHHIILFLHQF\LVGFXW —:KDWIUDFWLRQE\ZHLJKW RISDUWLFOHVZLOOWKHF\FORQHFROOHFW"  $ FHPHQW SODQW KDV D  SDUDOOHO FKDQQHO W\SH HOHFWURVWDWLF SUHFLSLWDWRU ZKLFKKDQGOHVPKRIIOXHJDV'HWHUPLQHWKHSODWHOHQJWKRIWKH (63 WR DFKLHYH   DQG  HIILFLHQF\ 7KH YHORFLW\ RI WKH SDUWLFOH WRZDUGV WKH SODWH LV  PVHF DQG WKH VL]H RI WKH SODWH LV  P KHLJKWDQGVSDFHGDWP  $YHQWXULVFUXEEHUKDVWKHIROORZLQJFKDUDFWHULVWLFV D 7KURDWDUHDP*DVIORZUDWHLVPV*DVWHPSHUDWXUHLV ž& ZKLOH 3\   î ± 3D6 OLTXLG IORZ UDWH LV  PV N 'URSOHWGLDPHWHULVPP E 'HULYHDQH[SUHVVLRQIRUWKHFROOHFWLRQHIILFLHQF\RIWKHVFUXEEHUDV DIXQFWLRQRISDUWLFOHVL]H 5()(5(1&(6  +/DPE+\GURG\QDPLFV'RZHU1HZ/W  S'  @ S '  /W  '

ZKHUH D Q Dc ' W ] XW YJ

7RWDODEVRUSWLRQDUHDRIWKHGURSOHWV 1XPEHURIGURSOHWVLQWKHWRZHUDWDQ\WLPH $UHDRIWKHVLQJOHGURSOHW 'LDPHWHURIWKHGURSOHW +ROGXSWLPHIRUGURSOHWV =XW±YJ  +HLJKWRIWKHWRZHU 7HUPLQDOVHWWOLQJYHORFLW\RIWKHGURSOHWVDQG 9HORFLW\RIWKHJDVUHODWLYHWRWKHWRZHU

)RU SDFNHG WRZHUV WKH DEVRUSWLRQ DFURVV D GLIIHUHQWLDO KHLJKW RI WKH WRZHU LV GHWHUPLQHGLQWHUPVRIWKHJDVDQGOLTXLGSKDVHVUHVSHFWLYHO\DV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

S

*  GS ³ N * D S 3  S S  S RU

=

S



*  GS ³ N * D S 3  S S  S RU

=



F

/  GF ³ . / D F U0  F F F

=





F

/  GF ³ . / D F U0  F F F

=









ZKHUH= WRZHUSDFNLQJKHLJKWDQGDOORWKHUWHUPVKDYHWKHLUXVXDOPHDQLQJV 7KHVHHTXDWLRQVDUHVROYHGIURPWKHHTXLOLEULXPFXUYHDQGWKHRSHUDWLQJOLQHFXUYH DQGQXPHULFDOO\LQWHJUDWLQJWKHIXQFWLRQVXQGHUWKHLQWHJUDOVLJQV

ZKHUH= WRZHUSDFNLQJKHLJKWDQGDOORWKHUWHUPVKDYHWKHLUXVXDOPHDQLQJV 7KHVHHTXDWLRQVDUHVROYHGIURPWKHHTXLOLEULXPFXUYHDQGWKHRSHUDWLQJOLQHFXUYH DQGQXPHULFDOO\LQWHJUDWLQJWKHIXQFWLRQVXQGHUWKHLQWHJUDOVLJQV

,QDLUSROOXWLRQFRQWUROXVXDOO\GLOXWHJDVHVDUHREWDLQHGZKLFKQHHGWREH WUHDWHG7KHUHIRUH3UDQGDQGFUP7KHUHIRUHHTXDWLRQVDQG PD\EHPRGLILHGWR

,QDLUSROOXWLRQFRQWUROXVXDOO\GLOXWHJDVHVDUHREWDLQHGZKLFKQHHGWREH WUHDWHG7KHUHIRUH3UDQGDQGFUP7KHUHIRUHHTXDWLRQVDQG PD\EHPRGLILHGWR

S

*  GS N * D3 S³ S  S DQG

=

S

*  GS N * D3 S³ S  S DQG

=





/ N / DUP

=

F

³

F

GF F F

F

GF

³ F F

F



7KHKHLJKWRIWKHWRZHULVFDOFXODWHGIURP

+ 2* 1 2* RU

=

/ N / DUP

=



7KHKHLJKWRIWKHWRZHULVFDOFXODWHGIURP =







+ 2* 1 2* RU

=

+ 2/ 1 2/

=



+ 2/ 1 2/

* ZKHUH +2* LVWKHKHLJKWRIWKHRYHUDOOJDVWUDQVIHUXQLW  N DS ¶ * 12* LV WKH QXPEHU RI JDV WUDQVIHU XQLW  ,QWHJUDO WHUP LQ WKH SUHVVXUH HTXDWLRQ / +2/ LVWKHKHLJKWRIDQRYHUDOOOLTXLGWUDQVIHUXQLW DQG N / DUP 12/ LV WKH QXPEHU RI OLTXLG SKDVH WUDQVIHU XQLW  ,QWHJUDO WHUP LQ WKH FRQFHQWUDWLRQHTXDWLRQ

* ZKHUH +2* LVWKHKHLJKWRIWKHRYHUDOOJDVWUDQVIHUXQLW  N DS ¶ * 12* LV WKH QXPEHU RI JDV WUDQVIHU XQLW  ,QWHJUDO WHUP LQ WKH SUHVVXUH HTXDWLRQ / +2/ LVWKHKHLJKWRIDQRYHUDOOOLTXLGWUDQVIHUXQLW DQG N / DUP 12/ LV WKH QXPEHU RI OLTXLG SKDVH WUDQVIHU XQLW  ,QWHJUDO WHUP LQ WKH FRQFHQWUDWLRQHTXDWLRQ

 ([SHULPHQWDO'HWHUPLQDWLRQRI+2*RU+2/

 ([SHULPHQWDO'HWHUPLQDWLRQRI+2*RU+2/

7KHEHVWGHWHUPLQDWLRQRI+2*DQG+2/DUHPDGHIURPWKHSLORWSODQWGDWDRQWKH JDVVWUHDPZLWKN*DDQGN/DYDOXHV,IWKHSLORWSODQWGDWDDUHQRWDYDLODEOH+2* PD\EHHVWLPDWHGE\WKHIROORZLQJH[SUHVVLRQV

7KHEHVWGHWHUPLQDWLRQRI+2*DQG+2/DUHPDGHIURPWKHSLORWSODQWGDWDRQWKH JDVVWUHDPZLWKN*DDQGN/DYDOXHV,IWKHSLORWSODQWGDWDDUHQRWDYDLODEOH+2* PD\EHHVWLPDWHGE\WKHIROORZLQJH[SUHVVLRQV

+ *  + / P*  /

+ 2*

+ 2/ P*  /



+ *  + / P*  /

+ 2*

+ 2/ P*  /

ZKHUH +2* +HLJKWRIWKHRYHUDOOJDVWUDQVIHUXQLWIW 

ZKHUH +2* +HLJKWRIWKHRYHUDOOJDVWUDQVIHUXQLWIW 

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

S

*  GS ³ N * D S 3  S S  S RU

=

S



*  GS ³ N * D S 3  S S  S RU

=







F

/  GF ³ . / D F U0  F F F

=



F

/  GF ³ . / D F U0  F F F

=









ZKHUH= WRZHUSDFNLQJKHLJKWDQGDOORWKHUWHUPVKDYHWKHLUXVXDOPHDQLQJV 7KHVHHTXDWLRQVDUHVROYHGIURPWKHHTXLOLEULXPFXUYHDQGWKHRSHUDWLQJOLQHFXUYH DQGQXPHULFDOO\LQWHJUDWLQJWKHIXQFWLRQVXQGHUWKHLQWHJUDOVLJQV

ZKHUH= WRZHUSDFNLQJKHLJKWDQGDOORWKHUWHUPVKDYHWKHLUXVXDOPHDQLQJV 7KHVHHTXDWLRQVDUHVROYHGIURPWKHHTXLOLEULXPFXUYHDQGWKHRSHUDWLQJOLQHFXUYH DQGQXPHULFDOO\LQWHJUDWLQJWKHIXQFWLRQVXQGHUWKHLQWHJUDOVLJQV

,QDLUSROOXWLRQFRQWUROXVXDOO\GLOXWHJDVHVDUHREWDLQHGZKLFKQHHGWREH WUHDWHG7KHUHIRUH3UDQGDQGFUP7KHUHIRUHHTXDWLRQVDQG PD\EHPRGLILHGWR

,QDLUSROOXWLRQFRQWUROXVXDOO\GLOXWHJDVHVDUHREWDLQHGZKLFKQHHGWREH WUHDWHG7KHUHIRUH3UDQGDQGFUP7KHUHIRUHHTXDWLRQVDQG PD\EHPRGLILHGWR

S

=

*  GS N * D3 S³ S  S DQG

S

=





/ N / DUP

=

F

³

F

GF F F

=

ZKHUH +2* 12* +2/ 12/





/ N / DUP

=



7KHKHLJKWRIWKHWRZHULVFDOFXODWHGIURP =

*  GS N * D3 S³ S  S DQG F

GF

³ F F

F



7KHKHLJKWRIWKHWRZHULVFDOFXODWHGIURP

+ 2* 1 2* RU



=

+ 2/ 1 2/

=

* LVWKHKHLJKWRIWKHRYHUDOOJDVWUDQVIHUXQLW  N DS ¶ * LV WKH QXPEHU RI JDV WUDQVIHU XQLW  ,QWHJUDO WHUP LQ WKH SUHVVXUH HTXDWLRQ / LVWKHKHLJKWRIDQRYHUDOOOLTXLGWUDQVIHUXQLW DQG N / DUP LV WKH QXPEHU RI OLTXLG SKDVH WUDQVIHU XQLW  ,QWHJUDO WHUP LQ WKH FRQFHQWUDWLRQHTXDWLRQ

+ 2* 1 2* RU



+ 2/ 1 2/

* ZKHUH +2* LVWKHKHLJKWRIWKHRYHUDOOJDVWUDQVIHUXQLW  N DS ¶ * 12* LV WKH QXPEHU RI JDV WUDQVIHU XQLW  ,QWHJUDO WHUP LQ WKH SUHVVXUH HTXDWLRQ / +2/ LVWKHKHLJKWRIDQRYHUDOOOLTXLGWUDQVIHUXQLW DQG N / DUP 12/ LV WKH QXPEHU RI OLTXLG SKDVH WUDQVIHU XQLW  ,QWHJUDO WHUP LQ WKH FRQFHQWUDWLRQHTXDWLRQ

 ([SHULPHQWDO'HWHUPLQDWLRQRI+2*RU+2/

 ([SHULPHQWDO'HWHUPLQDWLRQRI+2*RU+2/

7KHEHVWGHWHUPLQDWLRQRI+2*DQG+2/DUHPDGHIURPWKHSLORWSODQWGDWDRQWKH JDVVWUHDPZLWKN*DDQGN/DYDOXHV,IWKHSLORWSODQWGDWDDUHQRWDYDLODEOH+2* PD\EHHVWLPDWHGE\WKHIROORZLQJH[SUHVVLRQV

7KHEHVWGHWHUPLQDWLRQRI+2*DQG+2/DUHPDGHIURPWKHSLORWSODQWGDWDRQWKH JDVVWUHDPZLWKN*DDQGN/DYDOXHV,IWKHSLORWSODQWGDWDDUHQRWDYDLODEOH+2* PD\EHHVWLPDWHGE\WKHIROORZLQJH[SUHVVLRQV

+ 2*

+ *  + / P*  /

+ 2/ P*  /

ZKHUH +2* +HLJKWRIWKHRYHUDOOJDVWUDQVIHUXQLWIW 



+ 2*

+ *  + / P*  /

+ 2/ P*  /

ZKHUH +2* +HLJKWRIWKHRYHUDOOJDVWUDQVIHUXQLWIW 



$EVRUSWLRQRI*DVHRXV(PLVVLRQV  +J +HLJKWRIWKHJDVWUDQVIHUXQLWIW  +/ +HLJKWRIWKHOLTXLGWUDQVIHUXQLWIW DQG +2/ +HLJKWRIWKHRYHUDOOOLTXLGWUDQVIHUXQLWIW 

+J +HLJKWRIWKHJDVWUDQVIHUXQLWIW  +/ +HLJKWRIWKHOLTXLGWUDQVIHUXQLWIW DQG +2/ +HLJKWRIWKHRYHUDOOOLTXLGWUDQVIHUXQLWIW 

7KHWHUPP*/LVWKHUDWLRRIWKHVORSHVRIWKHHTXLOLEULXPOLQHP DQGWKH RSHUDWLQJOLQH/* ,WLVWHUPHGDVWKHDEVRUSWLRQIDFWRU+*DQG+/DUHHVWLPDWHG E\XVLQJWKHIROORZLQJUHDWLRQV 

+*

§ *% · ª + º D ¨¨ U ¸¸ « * » © / ¹ ¬ U* ' ¼ K



+/

§ / · ª P/ º I¨ ¸ « » © P/ ¹ ¬ U/ ' ¼

$EVRUSWLRQRI*DVHRXV(PLVVLRQV 





7KHWHUPP*/LVWKHUDWLRRIWKHVORSHVRIWKHHTXLOLEULXPOLQHP DQGWKH RSHUDWLQJOLQH/* ,WLVWHUPHGDVWKHDEVRUSWLRQIDFWRU+*DQG+/DUHHVWLPDWHG E\XVLQJWKHIROORZLQJUHDWLRQV 

+*

§ *% · ª + º D ¨¨ U ¸¸ « * » © / ¹ ¬ U* ' ¼ K



+/

§ / · ª P/ º I¨ ¸ « » © P/ ¹ ¬ U/ ' ¼





ZKHUH+*DQG+/DUHLQIW*DQG/DUHLQOEKU±IW—/LVLQOEIW±KUDQGYLVFRFLW\ GHQVLW\DQGGLIIXVLYLWLHVLQWKHJDVDQGOLTXLGSKDVHLQXQLWVWRJLYHDGLPHQVLRQOHVV QXPEHU6FKPLGWQXPEHU LQWKHEUDFNHWHGWHUPV

ZKHUH+*DQG+/DUHLQIW*DQG/DUHLQOEKU±IW—/LVLQOEIW±KUDQGYLVFRFLW\ GHQVLW\DQGGLIIXVLYLWLHVLQWKHJDVDQGOLTXLGSKDVHLQXQLWVWRJLYHDGLPHQVLRQOHVV QXPEHU6FKPLGWQXPEHU LQWKHEUDFNHWHGWHUPV

([SHULPHQWDO'HWHUPLQDWLRQRI12*RU12/

([SHULPHQWDO'HWHUPLQDWLRQRI12*RU12/

$ QXPEHU RI PHWKRGV DUH DYDLODEOH IRU WKH GHWHUPLQDWLRQ RI 12* 12/ PD\ EH GHWHUPLQHGLQDVLPLODUIDVKLRQ7KHVLPSOHVWLVWKH/RJ0HDQPHWKRG7KLVLQYROYHV WKHQXPHULFDOHYDOXDWLRQRIWKHLQWHJUDO

$ QXPEHU RI PHWKRGV DUH DYDLODEOH IRU WKH GHWHUPLQDWLRQ RI 12* 12/ PD\ EH GHWHUPLQHGLQDVLPLODUIDVKLRQ7KHVLPSOHVWLVWKH/RJ0HDQPHWKRG7KLVLQYROYHV WKHQXPHULFDOHYDOXDWLRQRIWKHLQWHJUDO

S

³

S

GS RU S S

F

³

F

GF F F

S



$QRWKHUSRSXODUPHWKRGLVWKH%DNHU¶V*UDSKLFDOPHWKRG,QWKLVPHWKRGD FXUYH$±$LVGUDZQLQVXFKDZD\WKDWLWJRHVWKURXJKWKHPLGSRLQWVRIDOOSRVVLEOH YHUWLFDOS±S OLQHVEHWZHHQWKHRSHUDWLQJDQGHTXLOLEULXPFXUYHV$W&3D KRUL]RQWDOOLQHLVGUDZQWRELVHFW$±$c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

=

³

S

GS RU S S

F F

=

173 =VS  (

$EVRUSWLRQRI*DVHRXV(PLVVLRQV 

§ *% · ª + º D ¨¨ U ¸¸ « * » © / ¹ ¬ U* ' ¼



K

§ / · ª P/ º I¨ ¸ « » © P/ ¹ ¬ U/ ' ¼



+/

$EVRUSWLRQRI*DVHRXV(PLVVLRQV  +J +HLJKWRIWKHJDVWUDQVIHUXQLWIW  +/ +HLJKWRIWKHOLTXLGWUDQVIHUXQLWIW DQG +2/ +HLJKWRIWKHRYHUDOOOLTXLGWUDQVIHUXQLWIW 

7KHWHUPP*/LVWKHUDWLRRIWKHVORSHVRIWKHHTXLOLEULXPOLQHP DQGWKH RSHUDWLQJOLQH/* ,WLVWHUPHGDVWKHDEVRUSWLRQIDFWRU+*DQG+/DUHHVWLPDWHG E\XVLQJWKHIROORZLQJUHDWLRQV +*



$QRWKHUSRSXODUPHWKRGLVWKH%DNHU¶V*UDSKLFDOPHWKRG,QWKLVPHWKRGD FXUYH$±$LVGUDZQLQVXFKDZD\WKDWLWJRHVWKURXJKWKHPLGSRLQWVRIDOOSRVVLEOH YHUWLFDOS±S OLQHVEHWZHHQWKHRSHUDWLQJDQGHTXLOLEULXPFXUYHV$W&3D KRUL]RQWDOOLQHLVGUDZQWRELVHFW$±$c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

173 =VS  (

+J +HLJKWRIWKHJDVWUDQVIHUXQLWIW  +/ +HLJKWRIWKHOLTXLGWUDQVIHUXQLWIW DQG +2/ +HLJKWRIWKHRYHUDOOOLTXLGWUDQVIHUXQLWIW 

GF

³ F F

7KHWHUPP*/LVWKHUDWLRRIWKHVORSHVRIWKHHTXLOLEULXPOLQHP DQGWKH RSHUDWLQJOLQH/* ,WLVWHUPHGDVWKHDEVRUSWLRQIDFWRU+*DQG+/DUHHVWLPDWHG E\XVLQJWKHIROORZLQJUHDWLRQV



§ *% · ª + º D ¨¨ U ¸¸ « * » © / ¹ ¬ U* ' ¼



+*

K



§ / · ª P/ º I¨ ¸ « » © P/ ¹ ¬ U/ ' ¼



+/





ZKHUH+*DQG+/DUHLQIW*DQG/DUHLQOEKU±IW—/LVLQOEIW±KUDQGYLVFRFLW\ GHQVLW\DQGGLIIXVLYLWLHVLQWKHJDVDQGOLTXLGSKDVHLQXQLWVWRJLYHDGLPHQVLRQOHVV QXPEHU6FKPLGWQXPEHU LQWKHEUDFNHWHGWHUPV

ZKHUH+*DQG+/DUHLQIW*DQG/DUHLQOEKU±IW—/LVLQOEIW±KUDQGYLVFRFLW\ GHQVLW\DQGGLIIXVLYLWLHVLQWKHJDVDQGOLTXLGSKDVHLQXQLWVWRJLYHDGLPHQVLRQOHVV QXPEHU6FKPLGWQXPEHU LQWKHEUDFNHWHGWHUPV

([SHULPHQWDO'HWHUPLQDWLRQRI12*RU12/

([SHULPHQWDO'HWHUPLQDWLRQRI12*RU12/

$ QXPEHU RI PHWKRGV DUH DYDLODEOH IRU WKH GHWHUPLQDWLRQ RI 12* 12/ PD\ EH GHWHUPLQHGLQDVLPLODUIDVKLRQ7KHVLPSOHVWLVWKH/RJ0HDQPHWKRG7KLVLQYROYHV WKHQXPHULFDOHYDOXDWLRQRIWKHLQWHJUDO

$ QXPEHU RI PHWKRGV DUH DYDLODEOH IRU WKH GHWHUPLQDWLRQ RI 12* 12/ PD\ EH GHWHUPLQHGLQDVLPLODUIDVKLRQ7KHVLPSOHVWLVWKH/RJ0HDQPHWKRG7KLVLQYROYHV WKHQXPHULFDOHYDOXDWLRQRIWKHLQWHJUDO

S

³

S

GS RU S S

F

³

F

GF F F

S



$QRWKHUSRSXODUPHWKRGLVWKH%DNHU¶V*UDSKLFDOPHWKRG,QWKLVPHWKRGD FXUYH$±$LVGUDZQLQVXFKDZD\WKDWLWJRHVWKURXJKWKHPLGSRLQWVRIDOOSRVVLEOH YHUWLFDOS±S OLQHVEHWZHHQWKHRSHUDWLQJDQGHTXLOLEULXPFXUYHV$W&3D KRUL]RQWDOOLQHLVGUDZQWRELVHFW$±$c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

=

173 =VS  (

³

S

GS RU S S

F

GF

³ F F

F



$QRWKHUSRSXODUPHWKRGLVWKH%DNHU¶V*UDSKLFDOPHWKRG,QWKLVPHWKRGD FXUYH$±$LVGUDZQLQVXFKDZD\WKDWLWJRHVWKURXJKWKHPLGSRLQWVRIDOOSRVVLEOH YHUWLFDOS±S OLQHVEHWZHHQWKHRSHUDWLQJDQGHTXLOLEULXPFXUYHV$W&3D KRUL]RQWDOOLQHLVGUDZQWRELVHFW$±$cIROORZHGE\DYHUWLFOHOLQHWRUHDFKWKH RSHUDWLQJ OLQH 7KH SURFHVV LV UHSHDWHG XQWLO WKH KRUL]RQWDO VHJPHQW FURVVHV F YDOXH7KHWRWDOQXPEHURIKRUL]RQWDOOLQHVLVFRXQWHGDQGWKHIUDFWLRQRIWKHILQDO OLQHWRUHDFKFLVDGGHG7KLVQXPEHULV1'*7KHPHWKRGLVLOOXVWUDWHGJUDSKLFDOO\ LQ)LJ $VLPLODUWHFKQLTXHLVXVHGLQSODWHWRZHUVE\GUDZLQJDKRUL]RQWDOOLQHXSWR WKHHTXLOLEULXPOLQHDQGDYHUWLFDOOLQHWRWKHRSHUDWLQJOLQHDQGFRQWLQXLQJWKLVXQWLO WKHSRLQW&3LVUHDFKHG7KLVJLYHVWKHQXPEHURIWKHRUHWLFDOSODWHVUHTXLUHGIRU DEVRUSWLRQ,QWKLVFDVHWKHWRZHUKHLJKWLVIRUPXODWHGDV

=

173 =VS  (

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV (C1, P1)

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV (C1, P1)

A

0.2

Pressure (P)

Pressure (P)

0.2

3

(C2, P2)

A

3

(C2, P2)

2

2

3.2 Transfer units

3.2 Transfer units

1

1

A

A Concentration (C)

Concentration (C)

)LJ%DNHU¶VJUDSKLFDOWHFKQLTXH

)LJ%DNHU¶VJUDSKLFDOWHFKQLTXH

ZKHUH=LVWKHWRZHUKHLJKWIW 173LVWKHQXPEHURIWKHRUHWLFDOSODWHV=VSLVWKH VSDFLQJRIWKHSODWHVIW DQG(LVWKHRYHUDOODEVRUSWLRQHIILFLHQF\RQDSODWH,W PXVW EH QRWHG KHUH WKDW WKH HIILFLHQF\ RI WKH DFWXDO SODWH LV QHYHU HTXDO WR WKH WKHRUHWLFDOSODWH

ZKHUH=LVWKHWRZHUKHLJKWIW 173LVWKHQXPEHURIWKHRUHWLFDOSODWHV=VSLVWKH VSDFLQJRIWKHSODWHVIW DQG(LVWKHRYHUDOODEVRUSWLRQHIILFLHQF\RQDSODWH,W PXVW EH QRWHG KHUH WKDW WKH HIILFLHQF\ RI WKH DFWXDO SODWH LV QHYHU HTXDO WR WKH WKHRUHWLFDOSODWH

)RUKLJKO\VROXEOHJDVHVWKHGULYLQJSUHVVXUHLVDSSUR[LPDWHO\WKHWRWDOSUHVVXUH RIWKHVROXWHLH S  S  S ,QVXFKFDVHV12*LVDSSUR[LPDWHO\HTXDOWRWKH WRWDOSUHVVXUHRIWKHVROXWH+HQFH

)RUKLJKO\VROXEOHJDVHVWKHGULYLQJSUHVVXUHLVDSSUR[LPDWHO\WKHWRWDOSUHVVXUH RIWKHVROXWHLH S  S  S ,QVXFKFDVHV12*LVDSSUR[LPDWHO\HTXDOWRWKH WRWDOSUHVVXUHRIWKHVROXWH+HQFH

1 2*  OQ U  U

1 2*  OQ U  U





7KLVPHDQVWKDW12*LVDSSUR[LPDWHO\HTXDOWRWKHQXPEHURIWUDQVIHUXQLWVVORSH RIWKHHTXLOLEULXPSORWLV]HUR )RU+&OJDVWKHVORSHRIWKHHTXLOLEULXPOLQHLV DWƒ&XSWRPRODUFRQFHQWUDWLRQVLQWKHJDVDQGOLTXLGSKDVHV+HQFHWKH DERYHDVVXPSWLRQLVTXLWHYDOLG+RZHYHULWPXVWEHERUQHLQPLQGWKDWQRWDOO JDVHRXVSROOXWDQWVRIIHUWKLVDGYDQWDJH

7KLVPHDQVWKDW12*LVDSSUR[LPDWHO\HTXDOWRWKHQXPEHURIWUDQVIHUXQLWVVORSH RIWKHHTXLOLEULXPSORWLV]HUR )RU+&OJDVWKHVORSHRIWKHHTXLOLEULXPOLQHLV DWƒ&XSWRPRODUFRQFHQWUDWLRQVLQWKHJDVDQGOLTXLGSKDVHV+HQFHWKH DERYHDVVXPSWLRQLVTXLWHYDOLG+RZHYHULWPXVWEHERUQHLQPLQGWKDWQRWDOO JDVHRXVSROOXWDQWVRIIHUWKLVDGYDQWDJH

 +HDG/RVV

 +HDG/RVV

7KHKHDGORVVIRUWKHSDFNHGWRZHUVLVVHOHFWHGWRSURYLGHDFRPSURPLVHRQWKH SXPSLQJ FRVWV DQG WRZHU VL]H 7KH YHORFLW\ PXVW EH VPDOO HQRXJK WR SUHYHQW H[FHVVLYH KROGLQJ RI WKH VFUXEELQJ OLTXLG 8VXDOO\ WKH SDFNLQJ PDQXIDFWXUHU SURYLGHV WKH GHVLJQ GDWD LQFOXGLQJ WKH KHDG ORVV SHU IRRW RI SDFNLQJ &RPPRQ SDFNLQJPDWHULDOVDUHVKRZQLQ)LJ)RUVSUD\WRZHUVKHDGORVVPD\EHWDNHQ DVWKHHQWU\DQGH[LWORVVHVDQGWRZHUORVVHVPD\EHQHJOHFWHG)RUF\FORQLFDQG

7KHKHDGORVVIRUWKHSDFNHGWRZHUVLVVHOHFWHGWRSURYLGHDFRPSURPLVHRQWKH SXPSLQJ FRVWV DQG WRZHU VL]H 7KH YHORFLW\ PXVW EH VPDOO HQRXJK WR SUHYHQW H[FHVVLYH KROGLQJ RI WKH VFUXEELQJ OLTXLG 8VXDOO\ WKH SDFNLQJ PDQXIDFWXUHU SURYLGHV WKH GHVLJQ GDWD LQFOXGLQJ WKH KHDG ORVV SHU IRRW RI SDFNLQJ &RPPRQ SDFNLQJPDWHULDOVDUHVKRZQLQ)LJ)RUVSUD\WRZHUVKHDGORVVPD\EHWDNHQ DVWKHHQWU\DQGH[LWORVVHVDQGWRZHUORVVHVPD\EHQHJOHFWHG)RUF\FORQLFDQG

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

(C1, P1)

(C1, P1)

A

0.2

Pressure (P)

Pressure (P)

0.2

3

(C2, P2)

A

3

(C2, P2)

2 3.2 Transfer units

2 3.2 Transfer units

1

1

A

A Concentration (C)

Concentration (C)

)LJ%DNHU¶VJUDSKLFDOWHFKQLTXH

)LJ%DNHU¶VJUDSKLFDOWHFKQLTXH

ZKHUH=LVWKHWRZHUKHLJKWIW 173LVWKHQXPEHURIWKHRUHWLFDOSODWHV=VSLVWKH VSDFLQJRIWKHSODWHVIW DQG(LVWKHRYHUDOODEVRUSWLRQHIILFLHQF\RQDSODWH,W PXVW EH QRWHG KHUH WKDW WKH HIILFLHQF\ RI WKH DFWXDO SODWH LV QHYHU HTXDO WR WKH WKHRUHWLFDOSODWH

ZKHUH=LVWKHWRZHUKHLJKWIW 173LVWKHQXPEHURIWKHRUHWLFDOSODWHV=VSLVWKH VSDFLQJRIWKHSODWHVIW DQG(LVWKHRYHUDOODEVRUSWLRQHIILFLHQF\RQDSODWH,W PXVW EH QRWHG KHUH WKDW WKH HIILFLHQF\ RI WKH DFWXDO SODWH LV QHYHU HTXDO WR WKH WKHRUHWLFDOSODWH

)RUKLJKO\VROXEOHJDVHVWKHGULYLQJSUHVVXUHLVDSSUR[LPDWHO\WKHWRWDOSUHVVXUH RIWKHVROXWHLH S  S  S ,QVXFKFDVHV12*LVDSSUR[LPDWHO\HTXDOWRWKH WRWDOSUHVVXUHRIWKHVROXWH+HQFH

)RUKLJKO\VROXEOHJDVHVWKHGULYLQJSUHVVXUHLVDSSUR[LPDWHO\WKHWRWDOSUHVVXUH RIWKHVROXWHLH S  S  S ,QVXFKFDVHV12*LVDSSUR[LPDWHO\HTXDOWRWKH WRWDOSUHVVXUHRIWKHVROXWH+HQFH

1 2*  OQ U  U

1 2*  OQ U  U





7KLVPHDQVWKDW12*LVDSSUR[LPDWHO\HTXDOWRWKHQXPEHURIWUDQVIHUXQLWVVORSH RIWKHHTXLOLEULXPSORWLV]HUR )RU+&OJDVWKHVORSHRIWKHHTXLOLEULXPOLQHLV DWƒ&XSWRPRODUFRQFHQWUDWLRQVLQWKHJDVDQGOLTXLGSKDVHV+HQFHWKH DERYHDVVXPSWLRQLVTXLWHYDOLG+RZHYHULWPXVWEHERUQHLQPLQGWKDWQRWDOO JDVHRXVSROOXWDQWVRIIHUWKLVDGYDQWDJH

7KLVPHDQVWKDW12*LVDSSUR[LPDWHO\HTXDOWRWKHQXPEHURIWUDQVIHUXQLWVVORSH RIWKHHTXLOLEULXPSORWLV]HUR )RU+&OJDVWKHVORSHRIWKHHTXLOLEULXPOLQHLV DWƒ&XSWRPRODUFRQFHQWUDWLRQVLQWKHJDVDQGOLTXLGSKDVHV+HQFHWKH DERYHDVVXPSWLRQLVTXLWHYDOLG+RZHYHULWPXVWEHERUQHLQPLQGWKDWQRWDOO JDVHRXVSROOXWDQWVRIIHUWKLVDGYDQWDJH

 +HDG/RVV

 +HDG/RVV

7KHKHDGORVVIRUWKHSDFNHGWRZHUVLVVHOHFWHGWRSURYLGHDFRPSURPLVHRQWKH SXPSLQJ FRVWV DQG WRZHU VL]H 7KH YHORFLW\ PXVW EH VPDOO HQRXJK WR SUHYHQW H[FHVVLYH KROGLQJ RI WKH VFUXEELQJ OLTXLG 8VXDOO\ WKH SDFNLQJ PDQXIDFWXUHU SURYLGHV WKH GHVLJQ GDWD LQFOXGLQJ WKH KHDG ORVV SHU IRRW RI SDFNLQJ &RPPRQ SDFNLQJPDWHULDOVDUHVKRZQLQ)LJ)RUVSUD\WRZHUVKHDGORVVPD\EHWDNHQ DVWKHHQWU\DQGH[LWORVVHVDQGWRZHUORVVHVPD\EHQHJOHFWHG)RUF\FORQLFDQG

7KHKHDGORVVIRUWKHSDFNHGWRZHUVLVVHOHFWHGWRSURYLGHDFRPSURPLVHRQWKH SXPSLQJ FRVWV DQG WRZHU VL]H 7KH YHORFLW\ PXVW EH VPDOO HQRXJK WR SUHYHQW H[FHVVLYH KROGLQJ RI WKH VFUXEELQJ OLTXLG 8VXDOO\ WKH SDFNLQJ PDQXIDFWXUHU SURYLGHV WKH GHVLJQ GDWD LQFOXGLQJ WKH KHDG ORVV SHU IRRW RI SDFNLQJ &RPPRQ SDFNLQJPDWHULDOVDUHVKRZQLQ)LJ)RUVSUD\WRZHUVKHDGORVVPD\EHWDNHQ DVWKHHQWU\DQGH[LWORVVHVDQGWRZHUORVVHVPD\EHQHJOHFWHG)RUF\FORQLFDQG

$EVRUSWLRQRI*DVHRXV(PLVVLRQV 

Intalox saddle

Berl saddle

Raschig ring

$EVRUSWLRQRI*DVHRXV(PLVVLRQV 

Tellerette

Pall ring

Intalox saddle

Berl saddle

Raschig ring

Tellerette

Pall ring

)LJ&RPPRQSDFNLQJPDWHULDOV

)LJ&RPPRQSDFNLQJPDWHULDOV

WUD\WRZHUVLWLVQRWDGYLVHGWRQHJOHFWWKHORVVHVDQGPDQXIDFWXUHUVGHVLJQGDWD PXVWEHUHOLHGXSRQ

WUD\WRZHUVLWLVQRWDGYLVHGWRQHJOHFWWKHORVVHVDQGPDQXIDFWXUHUVGHVLJQGDWD PXVWEHUHOLHGXSRQ

 $33/,&$7,216

 $33/,&$7,216

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cc DQG VPDOOHU%LJJHUSDFNLQJVRI±ccDUHOLPLWHGWRWRZHUVRIcGLDPHWHURUPRUH7KH JDVDQGOLTXLGIORZVPXVWEHGLVWULEXWHGXQLIRUPO\RYHUWKHHQWLUHFURVVVHFWLRQRI WKH WRZHU IRU EHVW RSHUDWLRQ 7KH SDFNLQJ PXVW EH VXSSRUWHG RQ D VWURQJ EDVH 3DFNLQJKHLJKWLVQRUPDOO\OLPLWHGWRDERXWIWRUGLDPHWHUVRIWKHFROXPQ ZKLFKHYHULVOHVV &RXQWHUFXUUHQWWRZHUVDUHSUHIHUUHGIRUPRVWRIWKHDLUSROOXWLRQFRQWURORI VROXEOHJDVHV+LJKO\VROXEOHJDVHVDUHUHPRYHGPRUHHFRQRPLFDOO\E\FRFXUUHQW RUFURVVIORZDEVRUEHUVEHFDXVHRIORZHUKHDGORVVHVLQVXFKV\VWHPV)RUKLJKO\

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cc DQG VPDOOHU%LJJHUSDFNLQJVRI±ccDUHOLPLWHGWRWRZHUVRIcGLDPHWHURUPRUH7KH JDVDQGOLTXLGIORZVPXVWEHGLVWULEXWHGXQLIRUPO\RYHUWKHHQWLUHFURVVVHFWLRQRI WKH WRZHU IRU EHVW RSHUDWLRQ 7KH SDFNLQJ PXVW EH VXSSRUWHG RQ D VWURQJ EDVH 3DFNLQJKHLJKWLVQRUPDOO\OLPLWHGWRDERXWIWRUGLDPHWHUVRIWKHFROXPQ ZKLFKHYHULVOHVV &RXQWHUFXUUHQWWRZHUVDUHSUHIHUUHGIRUPRVWRIWKHDLUSROOXWLRQFRQWURORI VROXEOHJDVHV+LJKO\VROXEOHJDVHVDUHUHPRYHGPRUHHFRQRPLFDOO\E\FRFXUUHQW RUFURVVIORZDEVRUEHUVEHFDXVHRIORZHUKHDGORVVHVLQVXFKV\VWHPV)RUKLJKO\

$EVRUSWLRQRI*DVHRXV(PLVVLRQV 

$EVRUSWLRQRI*DVHRXV(PLVVLRQV 

Intalox saddle

Berl saddle

Raschig ring

Pall ring

Tellerette

Intalox saddle

Berl saddle

Raschig ring

Pall ring

Tellerette

)LJ&RPPRQSDFNLQJPDWHULDOV

)LJ&RPPRQSDFNLQJPDWHULDOV

WUD\WRZHUVLWLVQRWDGYLVHGWRQHJOHFWWKHORVVHVDQGPDQXIDFWXUHUVGHVLJQGDWD PXVWEHUHOLHGXSRQ

WUD\WRZHUVLWLVQRWDGYLVHGWRQHJOHFWWKHORVVHVDQGPDQXIDFWXUHUVGHVLJQGDWD PXVWEHUHOLHGXSRQ

 $33/,&$7,216

 $33/,&$7,216

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cc DQG VPDOOHU%LJJHUSDFNLQJVRI±ccDUHOLPLWHGWRWRZHUVRIcGLDPHWHURUPRUH7KH JDVDQGOLTXLGIORZVPXVWEHGLVWULEXWHGXQLIRUPO\RYHUWKHHQWLUHFURVVVHFWLRQRI WKH WRZHU IRU EHVW RSHUDWLRQ 7KH SDFNLQJ PXVW EH VXSSRUWHG RQ D VWURQJ EDVH 3DFNLQJKHLJKWLVQRUPDOO\OLPLWHGWRDERXWIWRUGLDPHWHUVRIWKHFROXPQ ZKLFKHYHULVOHVV &RXQWHUFXUUHQWWRZHUVDUHSUHIHUUHGIRUPRVWRIWKHDLUSROOXWLRQFRQWURORI VROXEOHJDVHV+LJKO\VROXEOHJDVHVDUHUHPRYHGPRUHHFRQRPLFDOO\E\FRFXUUHQW RUFURVVIORZDEVRUEHUVEHFDXVHRIORZHUKHDGORVVHVLQVXFKV\VWHPV)RUKLJKO\

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cc DQG VPDOOHU%LJJHUSDFNLQJVRI±ccDUHOLPLWHGWRWRZHUVRIcGLDPHWHURUPRUH7KH JDVDQGOLTXLGIORZVPXVWEHGLVWULEXWHGXQLIRUPO\RYHUWKHHQWLUHFURVVVHFWLRQRI WKH WRZHU IRU EHVW RSHUDWLRQ 7KH SDFNLQJ PXVW EH VXSSRUWHG RQ D VWURQJ EDVH 3DFNLQJKHLJKWLVQRUPDOO\OLPLWHGWRDERXWIWRUGLDPHWHUVRIWKHFROXPQ ZKLFKHYHULVOHVV &RXQWHUFXUUHQWWRZHUVDUHSUHIHUUHGIRUPRVWRIWKHDLUSROOXWLRQFRQWURORI VROXEOHJDVHV+LJKO\VROXEOHJDVHVDUHUHPRYHGPRUHHFRQRPLFDOO\E\FRFXUUHQW RUFURVVIORZDEVRUEHUVEHFDXVHRIORZHUKHDGORVVHVLQVXFKV\VWHPV)RUKLJKO\

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

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

48(67,216

48(67,216

 ([SODLQWKHSURFHVVRIJDVDEVRUSWLRQLQDOLTXLGPHGLXPXVLQJGLIIXVLRQ WKHRU\  +RZDUH+HQU\¶VFRQVWDQWVXVHIXOLQWKHDEVRUSWLRQRIJDVHV"  8QGHU ZKDW FLUFXPVWDQFHV JDV DEVRUSWLRQ LV XVHIXO DV D PHWKRG RI FRQWUROOLQJJDVHRXVHPLVVLRQV:KDWVFUXEEHUVROXWLRQVDUHXVHGIRUWKH DEVRUSWLRQRIWKH62+612[DPPRQLDDQGFDUERQPRQR[LGH"  ([SODLQZLWKQHDWVNHWFKHVWKHPDLQIHDWXUHVRID SDFNHGWRZHUE SODWH WRZHU DQG F  FHQWULIXJDO VFUXEEHU  'HVLJQDSDFNHGWRZHUWRUHGXFHVXOSKXUGLR[LGHWRSSPVWDFNJDVDW R)IURPSSPYWRSSPY  'HVFULEHWKHDEVRUSWLRQRIVXOSKXUGLR[LGHXVLQJEXUOVDGGOHVRIPDUEOHV DQGDVXLWDEOHDONDOL 5()(5(1&(6  -+3HU\(G&KHPLFDO(QJLQHHU¶V+DQGERRN  *2 1RQKHEHO ³*DV 3XULILFDWLRQ 3URFHVVHV´ *HRUJH 1HZQHVV /WG /RQGRQ   $/.RKODQG)&5LHVHQIHOG³*DV3XULILFDWLRQ´0F*UDZ+LOO1HZ@

,PSRUWDQWGULYLQJIRUFHVRIJOREDOFOLPDWLFFKDQJHDUHLQFUHDVHLQSRSXODWLRQ HFRQRPLFDFWLYLW\DQGHQHUJ\LQWHQVLYHWHFKQRORJ\HPSOR\HGWRSURGXFHWKHJRRGV DQGVHUYLFHVWRWKHVRFLHW\$OOWKHVHDFWLYLWLHVUHVXOWLQWKHVLJQLILFDQWDGGLWLRQRI JUHHQKRXVH JDVHV LQWR WKH DWPRVSKHUH &DUERQ GLR[LGH KDV UHFHLYHG PD[LPXP DWWHQWLRQVRIDUEXWRWKHUJUHHQKRXVHJDVHVLQFOXGLQJQLWURXVR[LGHPHWKDQHDQG FKORURIOXRURFDUERQVDUHDOVREHFRPLQJDVLPSRUWDQWDV&2LQDOWHULQJWKHJOREDO FOLPDWLFFKDQJHV$OOWKHVHJDVHVDEVRUEUDGLDWLRQLQ±PPDWPRVSKHULFZLQGRZ DQGKHQFHUHGXFHWKHHIIHFWLYHUDGLDWLRQZLQGRZRIWKHHDUWK&)&LQSDUWLFXODULV WKHPRVWQRWRULRXVPDQPDGHJUHHQKRXVHJDV$VLQJOHPROHFXOHRI&)&FDXVHV JUHHQKRXVH HIIHFW HTXLYDOHQW WR  FDUERQ GLR[LGH PROHFXOHV 7DEOH  VXPPDUL]HVWKHWHPSRUDOWHQGHQFLHVRIJUHHQKRXVHJDVHV >@

7DEOH  &KDUDFWHULVWLFV RI JUHHQKRXVH JDVHV

7DEOH  &KDUDFWHULVWLFV RI JUHHQKRXVH JDVHV

3DUDPHWHU

&2

&RQFHQWUDWLRQ  SSP  SSP  PHDVXUHG SSP  H[SHFWHG SSP $QQXDO FRQFHQWUDWLRQ LQFUHDVHV   5HODWLYH JUHHQKRXVH HIILFLHQF\  &XUUHQW JUHHQKRXVH FRQWULEXWLRQ   $QWLFLSDWHG UDWH EHWZHHQ  DQG    (TXLOLEULXPWHPSHUDWXUHFKDQJH ±ƒ&  7RWDOWHPSHUDWXUHFKDQJH  /LIHWLPH \HDUV 

&+

12

&)&V

3DUDPHWHU

&2

SSE SSE SSE SSE       

SSE SSE SSE SSE       

SSE SSE SSE SSE      ƒ&   

&RQFHQWUDWLRQ  SSP  SSP  PHDVXUHG SSP  H[SHFWHG SSP $QQXDO FRQFHQWUDWLRQ LQFUHDVHV   5HODWLYH JUHHQKRXVH HIILFLHQF\  &XUUHQW JUHHQKRXVH FRQWULEXWLRQ   $QWLFLSDWHG UDWH EHWZHHQ  DQG    (TXLOLEULXPWHPSHUDWXUHFKDQJH ±ƒ&  7RWDOWHPSHUDWXUHFKDQJH  /LIHWLPH \HDUV 

&+

12

&)&V

SSE SSE SSE SSE       

SSE SSE SSE SSE       

SSE SSE SSE SSE      ƒ&   

 &/,0$7( &+$1*( 9$5,$%,/,7
@WKHFOLPDWHFKDQJHLVUHODWHG WRWKHUHFXUUHQWYDULDWLRQRIWKHHFFHQWULFLW\RIWKHHDUWK¶VHOOLSWLFDORUELWDURXQG WKHVXQZLWKDSHULRG\HDUVUHVXOWLQJLQVPDOOFKDQJHVLQWKHGLVWDQFH

*OREDO&OLPDWH&KDQJH 

*OREDO&OLPDWH&KDQJH 

,PSRUWDQWGULYLQJIRUFHVRIJOREDOFOLPDWLFFKDQJHDUHLQFUHDVHLQSRSXODWLRQ HFRQRPLFDFWLYLW\DQGHQHUJ\LQWHQVLYHWHFKQRORJ\HPSOR\HGWRSURGXFHWKHJRRGV DQGVHUYLFHVWRWKHVRFLHW\$OOWKHVHDFWLYLWLHVUHVXOWLQWKHVLJQLILFDQWDGGLWLRQRI JUHHQKRXVH JDVHV LQWR WKH DWPRVSKHUH &DUERQ GLR[LGH KDV UHFHLYHG PD[LPXP DWWHQWLRQVRIDUEXWRWKHUJUHHQKRXVHJDVHVLQFOXGLQJQLWURXVR[LGHPHWKDQHDQG FKORURIOXRURFDUERQVDUHDOVREHFRPLQJDVLPSRUWDQWDV&2LQDOWHULQJWKHJOREDO FOLPDWLFFKDQJHV$OOWKHVHJDVHVDEVRUEUDGLDWLRQLQ±PPDWPRVSKHULFZLQGRZ DQGKHQFHUHGXFHWKHHIIHFWLYHUDGLDWLRQZLQGRZRIWKHHDUWK&)&LQSDUWLFXODULV WKHPRVWQRWRULRXVPDQPDGHJUHHQKRXVHJDV$VLQJOHPROHFXOHRI&)&FDXVHV JUHHQKRXVH HIIHFW HTXLYDOHQW WR  FDUERQ GLR[LGH PROHFXOHV 7DEOH  VXPPDUL]HVWKHWHPSRUDOWHQGHQFLHVRIJUHHQKRXVHJDVHV >@

,PSRUWDQWGULYLQJIRUFHVRIJOREDOFOLPDWLFFKDQJHDUHLQFUHDVHLQSRSXODWLRQ HFRQRPLFDFWLYLW\DQGHQHUJ\LQWHQVLYHWHFKQRORJ\HPSOR\HGWRSURGXFHWKHJRRGV DQGVHUYLFHVWRWKHVRFLHW\$OOWKHVHDFWLYLWLHVUHVXOWLQWKHVLJQLILFDQWDGGLWLRQRI JUHHQKRXVH JDVHV LQWR WKH DWPRVSKHUH &DUERQ GLR[LGH KDV UHFHLYHG PD[LPXP DWWHQWLRQVRIDUEXWRWKHUJUHHQKRXVHJDVHVLQFOXGLQJQLWURXVR[LGHPHWKDQHDQG FKORURIOXRURFDUERQVDUHDOVREHFRPLQJDVLPSRUWDQWDV&2LQDOWHULQJWKHJOREDO FOLPDWLFFKDQJHV$OOWKHVHJDVHVDEVRUEUDGLDWLRQLQ±PPDWPRVSKHULFZLQGRZ DQGKHQFHUHGXFHWKHHIIHFWLYHUDGLDWLRQZLQGRZRIWKHHDUWK&)&LQSDUWLFXODULV WKHPRVWQRWRULRXVPDQPDGHJUHHQKRXVHJDV$VLQJOHPROHFXOHRI&)&FDXVHV JUHHQKRXVH HIIHFW HTXLYDOHQW WR  FDUERQ GLR[LGH PROHFXOHV 7DEOH  VXPPDUL]HVWKHWHPSRUDOWHQGHQFLHVRIJUHHQKRXVHJDVHV >@

7DEOH  &KDUDFWHULVWLFV RI JUHHQKRXVH JDVHV

7DEOH  &KDUDFWHULVWLFV RI JUHHQKRXVH JDVHV

3DUDPHWHU

&2

&RQFHQWUDWLRQ  SSP  SSP  PHDVXUHG SSP  H[SHFWHG SSP $QQXDO FRQFHQWUDWLRQ LQFUHDVHV   5HODWLYH JUHHQKRXVH HIILFLHQF\  &XUUHQW JUHHQKRXVH FRQWULEXWLRQ   $QWLFLSDWHG UDWH EHWZHHQ  DQG    (TXLOLEULXPWHPSHUDWXUHFKDQJH ±ƒ&  7RWDOWHPSHUDWXUHFKDQJH  /LIHWLPH \HDUV 

&+

12

&)&V

3DUDPHWHU

&2

SSE SSE SSE SSE       

SSE SSE SSE SSE       

SSE SSE SSE SSE      ƒ&   

&RQFHQWUDWLRQ  SSP  SSP  PHDVXUHG SSP  H[SHFWHG SSP $QQXDO FRQFHQWUDWLRQ LQFUHDVHV   5HODWLYH JUHHQKRXVH HIILFLHQF\  &XUUHQW JUHHQKRXVH FRQWULEXWLRQ   $QWLFLSDWHG UDWH EHWZHHQ  DQG    (TXLOLEULXPWHPSHUDWXUHFKDQJH ±ƒ&  7RWDOWHPSHUDWXUHFKDQJH  /LIHWLPH \HDUV 

&+

12

&)&V

SSE SSE SSE SSE       

SSE SSE SSE SSE       

SSE SSE SSE SSE      ƒ&   

 &/,0$7( &+$1*( 9$5,$%,/,7
@WKHFOLPDWHFKDQJHLVUHODWHG WRWKHUHFXUUHQWYDULDWLRQRIWKHHFFHQWULFLW\RIWKHHDUWK¶VHOOLSWLFDORUELWDURXQG WKHVXQZLWKDSHULRG\HDUVUHVXOWLQJLQVPDOOFKDQJHVLQWKHGLVWDQFH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

RIWKHHDUWKIURPWKHVXQLQJLYHQVHDVRQV DQGVKRZFKDQJHVLQWKHDQJOHRIWKH WLOWRIWKHHDUWK¶VD[LVZKLFKDIIHFWWKHDPSOLWXGHRIWKHVHDVRQDOLQVRODWLRQ7KHVH FKDQJHVDUHRIRQO\DERXWRIWKHLQFLGHQWVRODUUDGLDWLRQ+RZHYHUWKLVVPDOO SHUWXUEDWLRQLQWKHUDGLDWLRQIOX[LVVRPHKRZSURIRXQGO\DPSOLILHGE\WKHHDUWK¶V FOLPDWHV\VWHP7KHLPSRUWDQWDJHQWVUHVSRQVLEOHIRUVXFKFKDQJHVDUHWKRXJKWWR EH

RIWKHHDUWKIURPWKHVXQLQJLYHQVHDVRQV DQGVKRZFKDQJHVLQWKHDQJOHRIWKH WLOWRIWKHHDUWK¶VD[LVZKLFKDIIHFWWKHDPSOLWXGHRIWKHVHDVRQDOLQVRODWLRQ7KHVH FKDQJHVDUHRIRQO\DERXWRIWKHLQFLGHQWVRODUUDGLDWLRQ+RZHYHUWKLVVPDOO SHUWXUEDWLRQLQWKHUDGLDWLRQIOX[LVVRPHKRZSURIRXQGO\DPSOLILHGE\WKHHDUWK¶V FOLPDWHV\VWHP7KHLPSRUWDQWDJHQWVUHVSRQVLEOHIRUVXFKFKDQJHVDUHWKRXJKWWR EH

L

$WPRVSKHULFFDUERQGLR[LGHLQFRQFHQWUDWLRQVXSWRSSPDVGHWHUPLQHG E\WKHDQDO\VLVRI$WODQWLFLFHFRUHEXEEOHVSDFNHWVRILFHWUDSSHGLQLFH LL 2FHDQLQGXFHGFKDQJHVUHDVRQVQRW\HWFOHDU LLL &KDQJHVLQWKHHDUWK¶VDOEHGRGXHWRLFHPHOWDQGGHIRUHVWDWLRQ LY 3UHFLSLWDWLRQDWKLJKODWLWXGHVHWF Y ,FHPHOWV YL &2HPLVVLRQIURPWKHRFHDQLQWRWKHDWPRVSKHUH

L

 ([WUHPH :HDWKHU (YHQWV

 ([WUHPH :HDWKHU (YHQWV

$PRQJWKHPRVWGUDPDWLFHIIHFWVRIH[WUHPHZHDWKHUWURSLFDOF\FORQHVIORRGV GURXJKWVWRUQDGRHVOLJKWQLQJKDLODQGKHDY\VQRZIDOODUHSURPLQHQW,QDQDYHUDJH \HDUDERXWWURSLFDOF\FORQHVIRUPRYHUZDUPRFHDQZDWHUWKDWDIIHFWDWOHDVW GLIIHUHQWFRXQWULHV $QXPEHURIDJHQFLHVDUHHQJDJHGLQPRQLWRULQJDVVHVVPHQWUHVHDUFKDQG SUHGLFWLRQSURJUDPPHVRIFOLPDWHFKDQJHV,PSRUWDQWDPRQJWKHPLQFOXGH

$PRQJWKHPRVWGUDPDWLFHIIHFWVRIH[WUHPHZHDWKHUWURSLFDOF\FORQHVIORRGV GURXJKWVWRUQDGRHVOLJKWQLQJKDLODQGKHDY\VQRZIDOODUHSURPLQHQW,QDQDYHUDJH \HDUDERXWWURSLFDOF\FORQHVIRUPRYHUZDUPRFHDQZDWHUWKDWDIIHFWDWOHDVW GLIIHUHQWFRXQWULHV $QXPEHURIDJHQFLHVDUHHQJDJHGLQPRQLWRULQJDVVHVVPHQWUHVHDUFKDQG SUHGLFWLRQSURJUDPPHVRIFOLPDWHFKDQJHV,PSRUWDQWDPRQJWKHPLQFOXGH

   

   

:RUOG0HWHRURORJLFDO2UJDQL]DWLRQ:02 ,QWHUQDWLRQDO0HWHRURORJLFDO2UJDQL]DWLRQ,02 ,QWHUQDWLRQDO&RXQFLORI6FLHQWLILF8QLRQV,&68 ,QWHUJRYHUQPHQWDO3DQHORQ&OLPDWH&KDQJH,3&&

$WPRVSKHULFFDUERQGLR[LGHLQFRQFHQWUDWLRQVXSWRSSPDVGHWHUPLQHG E\WKHDQDO\VLVRI$WODQWLFLFHFRUHEXEEOHVSDFNHWVRILFHWUDSSHGLQLFH LL 2FHDQLQGXFHGFKDQJHVUHDVRQVQRW\HWFOHDU LLL &KDQJHVLQWKHHDUWK¶VDOEHGRGXHWRLFHPHOWDQGGHIRUHVWDWLRQ LY 3UHFLSLWDWLRQDWKLJKODWLWXGHVHWF Y ,FHPHOWV YL &2HPLVVLRQIURPWKHRFHDQLQWRWKHDWPRVSKHUH

:RUOG0HWHRURORJLFDO2UJDQL]DWLRQ:02 ,QWHUQDWLRQDO0HWHRURORJLFDO2UJDQL]DWLRQ,02 ,QWHUQDWLRQDO&RXQFLORI6FLHQWLILF8QLRQV,&68 ,QWHUJRYHUQPHQWDO3DQHORQ&OLPDWH&KDQJH,3&&

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¶V FOLPDWH V\VWHP FRQVLVWV RI D YDVW QXPEHU RI QDWXUDO YDULDWLRQV ZKLFK YDU\ UDQGRPO\ ,W LV LQ IDFW D FODVVLFDO H[DPSOH RI D FKDRWLF V\VWHP 1HYHUWKHOHVVVRPHYDULDWLRQVLQWKHQDWXUDOFOLPDWHGRRFFXULQUHFRJQL]DEOHSDWWHUQV ZKLFKLQGLFDWHWKDWVSHFLILFPHFKDQLVPVDUHLQYROYHG7KHGLIIHUHQFHVEHWZHHQ WRWDOSUHGLFWLRQVDQGDFWXDOPHDVXUHPHQWVSURYLGHDFOXHWRWKHXQGHUVWDQGLQJRI FOLPDWH$VRIQRZWKHUHLVQRSRVVLELOLW\RISUHGLFWLQJWKHORQJWHUPFOLPDWH FKDQJHV EXWWKHPRGHOLVVXIILFLHQWO\DFFXUDWHIRUVKRUWWHUPSUHGLFWLRQV

$OO WKHVH DJHQFLHV KDYH ODXQFKHG H[WHQVLYH JOREDO PHDVXUHPHQW DQG GDWD FROOHFWLRQGULYHVSHULRGLFLPSDFWDVVHVVPHQWV7KHNH\WRXQGHUVWDQGLQJWKHFOLPDWH LVWKHDFFXUDWHDQGFRQVLVWHQWGDWDFROOHFWLRQRYHUORQJSHULRGV $V D UHVXOW RI WKH HIIRUWV RI WKHVH DJHQFLHV WKH PRVW DGYDQFHG *HQHUDO &LUFXODWLRQ0RGHOV*&0V QRZFRYHUWKHHQWLUHHDUWKWKDWLQFOXGHUHSUHVHQWDWLRQ RIWKHDWPRVSKHUHRFHDQFU\RVSKHUHDQGODQGVXUIDFHV7KH*&0VDUHUXQRQ PRVW DGYDQFHG SRZHUIXO FRPSXWHUV 7KH 1DWLRQDO &HQWUH IRU 0HGLXP 5DQJH :HDWKHU)RUHFDVWLQJRI,QGLDQ0HWHRURORJLFDO'HSDUWPHQWKDVRQH VXFK 7KH HDUWK¶V FOLPDWH V\VWHP FRQVLVWV RI D YDVW QXPEHU RI QDWXUDO YDULDWLRQV ZKLFK YDU\ UDQGRPO\ ,W LV LQ IDFW D FODVVLFDO H[DPSOH RI D FKDRWLF V\VWHP 1HYHUWKHOHVVVRPHYDULDWLRQVLQWKHQDWXUDOFOLPDWHGRRFFXULQUHFRJQL]DEOHSDWWHUQV ZKLFKLQGLFDWHWKDWVSHFLILFPHFKDQLVPVDUHLQYROYHG7KHGLIIHUHQFHVEHWZHHQ WRWDOSUHGLFWLRQVDQGDFWXDOPHDVXUHPHQWVSURYLGHDFOXHWRWKHXQGHUVWDQGLQJRI FOLPDWH$VRIQRZWKHUHLVQRSRVVLELOLW\RISUHGLFWLQJWKHORQJWHUPFOLPDWH FKDQJHV EXWWKHPRGHOLVVXIILFLHQWO\DFFXUDWHIRUVKRUWWHUPSUHGLFWLRQV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

RIWKHHDUWKIURPWKHVXQLQJLYHQVHDVRQV DQGVKRZFKDQJHVLQWKHDQJOHRIWKH WLOWRIWKHHDUWK¶VD[LVZKLFKDIIHFWWKHDPSOLWXGHRIWKHVHDVRQDOLQVRODWLRQ7KHVH FKDQJHVDUHRIRQO\DERXWRIWKHLQFLGHQWVRODUUDGLDWLRQ+RZHYHUWKLVVPDOO SHUWXUEDWLRQLQWKHUDGLDWLRQIOX[LVVRPHKRZSURIRXQGO\DPSOLILHGE\WKHHDUWK¶V FOLPDWHV\VWHP7KHLPSRUWDQWDJHQWVUHVSRQVLEOHIRUVXFKFKDQJHVDUHWKRXJKWWR EH

RIWKHHDUWKIURPWKHVXQLQJLYHQVHDVRQV DQGVKRZFKDQJHVLQWKHDQJOHRIWKH WLOWRIWKHHDUWK¶VD[LVZKLFKDIIHFWWKHDPSOLWXGHRIWKHVHDVRQDOLQVRODWLRQ7KHVH FKDQJHVDUHRIRQO\DERXWRIWKHLQFLGHQWVRODUUDGLDWLRQ+RZHYHUWKLVVPDOO SHUWXUEDWLRQLQWKHUDGLDWLRQIOX[LVVRPHKRZSURIRXQGO\DPSOLILHGE\WKHHDUWK¶V FOLPDWHV\VWHP7KHLPSRUWDQWDJHQWVUHVSRQVLEOHIRUVXFKFKDQJHVDUHWKRXJKWWR EH

L

$WPRVSKHULFFDUERQGLR[LGHLQFRQFHQWUDWLRQVXSWRSSPDVGHWHUPLQHG E\WKHDQDO\VLVRI$WODQWLFLFHFRUHEXEEOHVSDFNHWVRILFHWUDSSHGLQLFH LL 2FHDQLQGXFHGFKDQJHVUHDVRQVQRW\HWFOHDU LLL &KDQJHVLQWKHHDUWK¶VDOEHGRGXHWRLFHPHOWDQGGHIRUHVWDWLRQ LY 3UHFLSLWDWLRQDWKLJKODWLWXGHVHWF Y ,FHPHOWV YL &2HPLVVLRQIURPWKHRFHDQLQWRWKHDWPRVSKHUH

L

 ([WUHPH :HDWKHU (YHQWV

 ([WUHPH :HDWKHU (YHQWV

$PRQJWKHPRVWGUDPDWLFHIIHFWVRIH[WUHPHZHDWKHUWURSLFDOF\FORQHVIORRGV GURXJKWVWRUQDGRHVOLJKWQLQJKDLODQGKHDY\VQRZIDOODUHSURPLQHQW,QDQDYHUDJH \HDUDERXWWURSLFDOF\FORQHVIRUPRYHUZDUPRFHDQZDWHUWKDWDIIHFWDWOHDVW GLIIHUHQWFRXQWULHV $QXPEHURIDJHQFLHVDUHHQJDJHGLQPRQLWRULQJDVVHVVPHQWUHVHDUFKDQG SUHGLFWLRQSURJUDPPHVRIFOLPDWHFKDQJHV,PSRUWDQWDPRQJWKHPLQFOXGH

$PRQJWKHPRVWGUDPDWLFHIIHFWVRIH[WUHPHZHDWKHUWURSLFDOF\FORQHVIORRGV GURXJKWVWRUQDGRHVOLJKWQLQJKDLODQGKHDY\VQRZIDOODUHSURPLQHQW,QDQDYHUDJH \HDUDERXWWURSLFDOF\FORQHVIRUPRYHUZDUPRFHDQZDWHUWKDWDIIHFWDWOHDVW GLIIHUHQWFRXQWULHV $QXPEHURIDJHQFLHVDUHHQJDJHGLQPRQLWRULQJDVVHVVPHQWUHVHDUFKDQG SUHGLFWLRQSURJUDPPHVRIFOLPDWHFKDQJHV,PSRUWDQWDPRQJWKHPLQFOXGH

   

   

:RUOG0HWHRURORJLFDO2UJDQL]DWLRQ:02 ,QWHUQDWLRQDO0HWHRURORJLFDO2UJDQL]DWLRQ,02 ,QWHUQDWLRQDO&RXQFLORI6FLHQWLILF8QLRQV,&68 ,QWHUJRYHUQPHQWDO3DQHORQ&OLPDWH&KDQJH,3&&

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¶V FOLPDWH V\VWHP FRQVLVWV RI D YDVW QXPEHU RI QDWXUDO YDULDWLRQV ZKLFK YDU\ UDQGRPO\ ,W LV LQ IDFW D FODVVLFDO H[DPSOH RI D FKDRWLF V\VWHP 1HYHUWKHOHVVVRPHYDULDWLRQVLQWKHQDWXUDOFOLPDWHGRRFFXULQUHFRJQL]DEOHSDWWHUQV ZKLFKLQGLFDWHWKDWVSHFLILFPHFKDQLVPVDUHLQYROYHG7KHGLIIHUHQFHVEHWZHHQ WRWDOSUHGLFWLRQVDQGDFWXDOPHDVXUHPHQWVSURYLGHDFOXHWRWKHXQGHUVWDQGLQJRI FOLPDWH$VRIQRZWKHUHLVQRSRVVLELOLW\RISUHGLFWLQJWKHORQJWHUPFOLPDWH FKDQJHV EXWWKHPRGHOLVVXIILFLHQWO\DFFXUDWHIRUVKRUWWHUPSUHGLFWLRQV

$WPRVSKHULFFDUERQGLR[LGHLQFRQFHQWUDWLRQVXSWRSSPDVGHWHUPLQHG E\WKHDQDO\VLVRI$WODQWLFLFHFRUHEXEEOHVSDFNHWVRILFHWUDSSHGLQLFH LL 2FHDQLQGXFHGFKDQJHVUHDVRQVQRW\HWFOHDU LLL &KDQJHVLQWKHHDUWK¶VDOEHGRGXHWRLFHPHOWDQGGHIRUHVWDWLRQ LY 3UHFLSLWDWLRQDWKLJKODWLWXGHVHWF Y ,FHPHOWV YL &2HPLVVLRQIURPWKHRFHDQLQWRWKHDWPRVSKHUH

:RUOG0HWHRURORJLFDO2UJDQL]DWLRQ:02 ,QWHUQDWLRQDO0HWHRURORJLFDO2UJDQL]DWLRQ,02 ,QWHUQDWLRQDO&RXQFLORI6FLHQWLILF8QLRQV,&68 ,QWHUJRYHUQPHQWDO3DQHORQ&OLPDWH&KDQJH,3&&

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¶V FOLPDWH V\VWHP FRQVLVWV RI D YDVW QXPEHU RI QDWXUDO YDULDWLRQV ZKLFK YDU\ UDQGRPO\ ,W LV LQ IDFW D FODVVLFDO H[DPSOH RI D FKDRWLF V\VWHP 1HYHUWKHOHVVVRPHYDULDWLRQVLQWKHQDWXUDOFOLPDWHGRRFFXULQUHFRJQL]DEOHSDWWHUQV ZKLFKLQGLFDWHWKDWVSHFLILFPHFKDQLVPVDUHLQYROYHG7KHGLIIHUHQFHVEHWZHHQ WRWDOSUHGLFWLRQVDQGDFWXDOPHDVXUHPHQWVSURYLGHDFOXHWRWKHXQGHUVWDQGLQJRI FOLPDWH$VRIQRZWKHUHLVQRSRVVLELOLW\RISUHGLFWLQJWKHORQJWHUPFOLPDWH FKDQJHV EXWWKHPRGHOLVVXIILFLHQWO\DFFXUDWHIRUVKRUWWHUPSUHGLFWLRQV

*OREDO&OLPDWH&KDQJH 

*OREDO&OLPDWH&KDQJH 

 7KH (O 1LQR6RXWKHUQ 2VFLOODWLRQ 3KHQRPHQRQ

 7KH (O 1LQR6RXWKHUQ 2VFLOODWLRQ 3KHQRPHQRQ

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±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±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

E

)LJ&OLPDWHFKDQJHVGXULQJ(O1LQR

E

)LJ&OLPDWHFKDQJHVGXULQJ(O1LQR

 (IIHFWVRI(O1LQR

 (IIHFWVRI(O1LQR

$W\SLFDO(O1LQRFDXVHVDYDULHW\RIFKDQJHVLQWKHZHDWKHUDQGELRVSKHUH$VDQ H[DPSOHOHWXVWDNHWKH2FW(O1LQRSKHQRPHQRQ,PSRUWDQWREVHUYDWLRQVRI WKLVSKHQRPHQDFDQEHVXPPDUL]HGDVIROORZV

$W\SLFDO(O1LQRFDXVHVDYDULHW\RIFKDQJHVLQWKHZHDWKHUDQGELRVSKHUH$VDQ H[DPSOHOHWXVWDNHWKH2FW(O1LQRSKHQRPHQRQ,PSRUWDQWREVHUYDWLRQVRI WKLVSKHQRPHQDFDQEHVXPPDUL]HGDVIROORZV

 6HDOHYHOURVHXSWRFPDQGVSUHDGXSWRNPWRWKHHDVWXSWR(TXDWRU

 6HDOHYHOURVHXSWRFPDQGVSUHDGXSWRNPWRWKHHDVWXSWR(TXDWRU

*OREDO&OLPDWH&KDQJH 

*OREDO&OLPDWH&KDQJH 

 7KH (O 1LQR6RXWKHUQ 2VFLOODWLRQ 3KHQRPHQRQ

 7KH (O 1LQR6RXWKHUQ 2VFLOODWLRQ 3KHQRPHQRQ

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±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±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

E

)LJ&OLPDWHFKDQJHVGXULQJ(O1LQR

E

)LJ&OLPDWHFKDQJHVGXULQJ(O1LQR

 (IIHFWVRI(O1LQR

 (IIHFWVRI(O1LQR

$W\SLFDO(O1LQRFDXVHVDYDULHW\RIFKDQJHVLQWKHZHDWKHUDQGELRVSKHUH$VDQ H[DPSOHOHWXVWDNHWKH2FW(O1LQRSKHQRPHQRQ,PSRUWDQWREVHUYDWLRQVRI WKLVSKHQRPHQDFDQEHVXPPDUL]HGDVIROORZV

$W\SLFDO(O1LQRFDXVHVDYDULHW\RIFKDQJHVLQWKHZHDWKHUDQGELRVSKHUH$VDQ H[DPSOHOHWXVWDNHWKH2FW(O1LQRSKHQRPHQRQ,PSRUWDQWREVHUYDWLRQVRI WKLVSKHQRPHQDFDQEHVXPPDUL]HGDVIROORZV

 6HDOHYHOURVHXSWRFPDQGVSUHDGXSWRNPWRWKHHDVWXSWR(TXDWRU

 6HDOHYHOURVHXSWRFPDQGVSUHDGXSWRNPWRWKHHDVWXSWR(TXDWRU

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Pacific Ocean

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Pacific Ocean

Warmest water Diagram A: The normal situation

Warmest water Diagram B: The El Nino years

Diagram A: The normal situation

Diagram B: The El Nino years

)LJ7HPSHUDWXUHGLVWULEXWLRQRIVHDVXUIDFHZDWHUGXULQJ(O1LQR

)LJ7HPSHUDWXUHGLVWULEXWLRQRIVHDVXUIDFHZDWHUGXULQJ(O1LQR

 6HDOHYHOGURSLQWKHZHVWHUQSDFLILFH[SRVHGDQGGHVWUR\HGWKHXSSHUOD\HUV RIIUDJLOHFRUDOUHHIVWKHUHE\DIIHFWLQJPDULQHOLIH8SWRRIIXUVHDOVVHD OLRQVDGXOWVDQGDOOSXSVKDGGLHG  6DUGLQHVPRYHGVRXWKDQGILVKFDWFKLQ3HUXVXIIHUHGKHDYLO\  ,Q (FXDGRU DQG 1RUWKHUQ 3HUX UDLQIDOO LQFUHDVHG WR  FP GXULQJ D VL[ PRQWKSHULRG  6HYHUHGURXJKWVDQGGLVDVWURXVIRUHVWILUHVRFFXUUHGLQ,QGRQHVLDDQG$XVWUDOLD  7HPSHUDWXUHLQ7H[DVUHDFKHGXSWRƒ&IRUDUHFRUGGD\  2YHUDOOORVVLQHFRQRP\ZDV86ELOOLRQGROODUV

 6HDOHYHOGURSLQWKHZHVWHUQSDFLILFH[SRVHGDQGGHVWUR\HGWKHXSSHUOD\HUV RIIUDJLOHFRUDOUHHIVWKHUHE\DIIHFWLQJPDULQHOLIH8SWRRIIXUVHDOVVHD OLRQVDGXOWVDQGDOOSXSVKDGGLHG  6DUGLQHVPRYHGVRXWKDQGILVKFDWFKLQ3HUXVXIIHUHGKHDYLO\  ,Q (FXDGRU DQG 1RUWKHUQ 3HUX UDLQIDOO LQFUHDVHG WR  FP GXULQJ D VL[ PRQWKSHULRG  6HYHUHGURXJKWVDQGGLVDVWURXVIRUHVWILUHVRFFXUUHGLQ,QGRQHVLDDQG$XVWUDOLD  7HPSHUDWXUHLQ7H[DVUHDFKHGXSWRƒ&IRUDUHFRUGGD\  2YHUDOOORVVLQHFRQRP\ZDV86ELOOLRQGROODUV

7KH(O1LQRRILVUHFRJQLVHGDVWKHPRVWGHVWUXFWLYHRQHRIWKHWK FHQWXU\ZKLFKFDXVHGWKHZRUVWVXPPHULQ,QGLDDQGOHIWGHDG7KH(O 1LQRLVWKHODUJHVWRQHUHFRUGHGWLOOGDWH1RZDGD\VWKHSUHGLFWLRQRI(O1LQRKDV EHFRPHURXWLQHDQGDSSURSULDWHVWHSVDUHWDNHQWRUHGXFHWKHVHYHULW\RIWKHGDPDJH

7KH(O1LQRRILVUHFRJQLVHGDVWKHPRVWGHVWUXFWLYHRQHRIWKHWK FHQWXU\ZKLFKFDXVHGWKHZRUVWVXPPHULQ,QGLDDQGOHIWGHDG7KH(O 1LQRLVWKHODUJHVWRQHUHFRUGHGWLOOGDWH1RZDGD\VWKHSUHGLFWLRQRI(O1LQRKDV EHFRPHURXWLQHDQGDSSURSULDWHVWHSVDUHWDNHQWRUHGXFHWKHVHYHULW\RIWKHGDPDJH

 7+( 52/( $1' ,03257$1&( 2) &$5%21 ',2;,'( ,1 */2%$/:$50,1*

 7+( 52/( $1' ,03257$1&( 2) &$5%21 ',2;,'( ,1 */2%$/:$50,1*

&DUERQGLR[LGHLVDOLQHDUV\PPHWULFDOPROHFXOHZLWK&2ERQGOHQJWKRI QP LQWKHJURXQGVWDWH,WGRHVQRWVKRZDQ\DEVRUSWLRQLQWKHYLVLEOHDQGQHDUXOWUDYLROHW UHJLRQXSWRQP7KHILUVWNQRZQDEVRUSWLRQVWDUWVIURPQPUHDFKLQJD PD[LPD DW  QP ,W LV D GLIIXVH EDQG RYHUODSSHG E\ D FRQWLQXXP ,Q WKH H[FLWHGVWDWHWKHPROHFXOHLVEHQWƒ“ƒ ZKLFKLVLGHQWLILHGDVD %VWDWH GHULYHG IURP ' VWDWH RI D OLQHDU PROHFXOH 7KH VHFRQG DEVRUSWLRQ UHJLRQ LV REVHUYHGLQ±QPZLWKDPD[LPDDWQP7KHERQGGLVVRFLDWLRQHQHUJ\ RI'2&2 LVN-PRO±ZKLFKFRUUHVSRQGVWRDSKRWRQHQHUJ\RI QPZDYHOHQJWK$OOWKHDEVRUSWLRQEDQGVRIFDUERQGLR[LGHDUHREVHUYHGLQQHDU

&DUERQGLR[LGHLVDOLQHDUV\PPHWULFDOPROHFXOHZLWK&2ERQGOHQJWKRI QP LQWKHJURXQGVWDWH,WGRHVQRWVKRZDQ\DEVRUSWLRQLQWKHYLVLEOHDQGQHDUXOWUDYLROHW UHJLRQXSWRQP7KHILUVWNQRZQDEVRUSWLRQVWDUWVIURPQPUHDFKLQJD PD[LPD DW  QP ,W LV D GLIIXVH EDQG RYHUODSSHG E\ D FRQWLQXXP ,Q WKH H[FLWHGVWDWHWKHPROHFXOHLVEHQWƒ“ƒ ZKLFKLVLGHQWLILHGDVD %VWDWH GHULYHG IURP ' VWDWH RI D OLQHDU PROHFXOH 7KH VHFRQG DEVRUSWLRQ UHJLRQ LV REVHUYHGLQ±QPZLWKDPD[LPDDWQP7KHERQGGLVVRFLDWLRQHQHUJ\ RI'2&2 LVN-PRO±ZKLFKFRUUHVSRQGVWRDSKRWRQHQHUJ\RI QPZDYHOHQJWK$OOWKHDEVRUSWLRQEDQGVRIFDUERQGLR[LGHDUHREVHUYHGLQQHDU

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Pacific Ocean

Pacific Ocean

Warmest water Diagram A: The normal situation

Warmest water Diagram B: The El Nino years

Diagram A: The normal situation

Diagram B: The El Nino years

)LJ7HPSHUDWXUHGLVWULEXWLRQRIVHDVXUIDFHZDWHUGXULQJ(O1LQR

)LJ7HPSHUDWXUHGLVWULEXWLRQRIVHDVXUIDFHZDWHUGXULQJ(O1LQR

 6HDOHYHOGURSLQWKHZHVWHUQSDFLILFH[SRVHGDQGGHVWUR\HGWKHXSSHUOD\HUV RIIUDJLOHFRUDOUHHIVWKHUHE\DIIHFWLQJPDULQHOLIH8SWRRIIXUVHDOVVHD OLRQVDGXOWVDQGDOOSXSVKDGGLHG  6DUGLQHVPRYHGVRXWKDQGILVKFDWFKLQ3HUXVXIIHUHGKHDYLO\  ,Q (FXDGRU DQG 1RUWKHUQ 3HUX UDLQIDOO LQFUHDVHG WR  FP GXULQJ D VL[ PRQWKSHULRG  6HYHUHGURXJKWVDQGGLVDVWURXVIRUHVWILUHVRFFXUUHGLQ,QGRQHVLDDQG$XVWUDOLD  7HPSHUDWXUHLQ7H[DVUHDFKHGXSWRƒ&IRUDUHFRUGGD\  2YHUDOOORVVLQHFRQRP\ZDV86ELOOLRQGROODUV

 6HDOHYHOGURSLQWKHZHVWHUQSDFLILFH[SRVHGDQGGHVWUR\HGWKHXSSHUOD\HUV RIIUDJLOHFRUDOUHHIVWKHUHE\DIIHFWLQJPDULQHOLIH8SWRRIIXUVHDOVVHD OLRQVDGXOWVDQGDOOSXSVKDGGLHG  6DUGLQHVPRYHGVRXWKDQGILVKFDWFKLQ3HUXVXIIHUHGKHDYLO\  ,Q (FXDGRU DQG 1RUWKHUQ 3HUX UDLQIDOO LQFUHDVHG WR  FP GXULQJ D VL[ PRQWKSHULRG  6HYHUHGURXJKWVDQGGLVDVWURXVIRUHVWILUHVRFFXUUHGLQ,QGRQHVLDDQG$XVWUDOLD  7HPSHUDWXUHLQ7H[DVUHDFKHGXSWRƒ&IRUDUHFRUGGD\  2YHUDOOORVVLQHFRQRP\ZDV86ELOOLRQGROODUV

7KH(O1LQRRILVUHFRJQLVHGDVWKHPRVWGHVWUXFWLYHRQHRIWKHWK FHQWXU\ZKLFKFDXVHGWKHZRUVWVXPPHULQ,QGLDDQGOHIWGHDG7KH(O 1LQRLVWKHODUJHVWRQHUHFRUGHGWLOOGDWH1RZDGD\VWKHSUHGLFWLRQRI(O1LQRKDV EHFRPHURXWLQHDQGDSSURSULDWHVWHSVDUHWDNHQWRUHGXFHWKHVHYHULW\RIWKHGDPDJH

7KH(O1LQRRILVUHFRJQLVHGDVWKHPRVWGHVWUXFWLYHRQHRIWKHWK FHQWXU\ZKLFKFDXVHGWKHZRUVWVXPPHULQ,QGLDDQGOHIWGHDG7KH(O 1LQRLVWKHODUJHVWRQHUHFRUGHGWLOOGDWH1RZDGD\VWKHSUHGLFWLRQRI(O1LQRKDV EHFRPHURXWLQHDQGDSSURSULDWHVWHSVDUHWDNHQWRUHGXFHWKHVHYHULW\RIWKHGDPDJH

 7+( 52/( $1' ,03257$1&( 2) &$5%21 ',2;,'( ,1 */2%$/:$50,1*

 7+( 52/( $1' ,03257$1&( 2) &$5%21 ',2;,'( ,1 */2%$/:$50,1*

&DUERQGLR[LGHLVDOLQHDUV\PPHWULFDOPROHFXOHZLWK&2ERQGOHQJWKRI QP LQWKHJURXQGVWDWH,WGRHVQRWVKRZDQ\DEVRUSWLRQLQWKHYLVLEOHDQGQHDUXOWUDYLROHW UHJLRQXSWRQP7KHILUVWNQRZQDEVRUSWLRQVWDUWVIURPQPUHDFKLQJD PD[LPD DW  QP ,W LV D GLIIXVH EDQG RYHUODSSHG E\ D FRQWLQXXP ,Q WKH H[FLWHGVWDWHWKHPROHFXOHLVEHQWƒ“ƒ ZKLFKLVLGHQWLILHGDVD %VWDWH GHULYHG IURP ' VWDWH RI D OLQHDU PROHFXOH 7KH VHFRQG DEVRUSWLRQ UHJLRQ LV REVHUYHGLQ±QPZLWKDPD[LPDDWQP7KHERQGGLVVRFLDWLRQHQHUJ\ RI'2&2 LVN-PRO±ZKLFKFRUUHVSRQGVWRDSKRWRQHQHUJ\RI QPZDYHOHQJWK$OOWKHDEVRUSWLRQEDQGVRIFDUERQGLR[LGHDUHREVHUYHGLQQHDU

&DUERQGLR[LGHLVDOLQHDUV\PPHWULFDOPROHFXOHZLWK&2ERQGOHQJWKRI QP LQWKHJURXQGVWDWH,WGRHVQRWVKRZDQ\DEVRUSWLRQLQWKHYLVLEOHDQGQHDUXOWUDYLROHW UHJLRQXSWRQP7KHILUVWNQRZQDEVRUSWLRQVWDUWVIURPQPUHDFKLQJD PD[LPD DW  QP ,W LV D GLIIXVH EDQG RYHUODSSHG E\ D FRQWLQXXP ,Q WKH H[FLWHGVWDWHWKHPROHFXOHLVEHQWƒ“ƒ ZKLFKLVLGHQWLILHGDVD %VWDWH GHULYHG IURP ' VWDWH RI D OLQHDU PROHFXOH 7KH VHFRQG DEVRUSWLRQ UHJLRQ LV REVHUYHGLQ±QPZLWKDPD[LPDDWQP7KHERQGGLVVRFLDWLRQHQHUJ\ RI'2&2 LVN-PRO±ZKLFKFRUUHVSRQGVWRDSKRWRQHQHUJ\RI QPZDYHOHQJWK$OOWKHDEVRUSWLRQEDQGVRIFDUERQGLR[LGHDUHREVHUYHGLQQHDU

*OREDO&OLPDWH&KDQJH 

*OREDO&OLPDWH&KDQJH 

XOWUDYLROHWUHJLRQDQGEH\RQG7KHUHIRUHIUHHFDUERQGLR[LGHPROHFXOHLVQRWRI PXFKLPSRUWDQFHWRSKRWRFKHPLFDOUHDFWLRQVLQWKHDWPRVSKHUH )UHH FDUERQ GLR[LGH LQ WKH DWPRVSKHUH LV PDLQO\ FRQVXPHG E\ WKH SKRWRV\QWKHWLF SURFHVV 'XULQJ SKRWRV\QWKHVLV SODQWV XVH VRODU HQHUJ\ FDUERQ GLR[LGHDQGZDWHUWRSURGXFHFDUERK\GUDWHVDQGR[\JHQDFFRUGLQJWRWKHUHDFWLRQ

XOWUDYLROHWUHJLRQDQGEH\RQG7KHUHIRUHIUHHFDUERQGLR[LGHPROHFXOHLVQRWRI PXFKLPSRUWDQFHWRSKRWRFKHPLFDOUHDFWLRQVLQWKHDWPRVSKHUH )UHH FDUERQ GLR[LGH LQ WKH DWPRVSKHUH LV PDLQO\ FRQVXPHG E\ WKH SKRWRV\QWKHWLF SURFHVV 'XULQJ SKRWRV\QWKHVLV SODQWV XVH VRODU HQHUJ\ FDUERQ GLR[LGHDQGZDWHUWRSURGXFHFDUERK\GUDWHVDQGR[\JHQDFFRUGLQJWRWKHUHDFWLRQ

VXQOLJKW &2  +  2  o & + 2  2

VXQOLJKW &2  +  2  o & + 2  2





&DUERK\GUDWHVDUHIXUWKHUXWLOL]HGWREXLOGFRPSOH[RUJDQLFPROHFXOHVUHTXLUHG IRU SODQW JURZWK 7KH\ DUH DOVR WKH HQHUJ\ VRXUFHV IRU WKH VXVWHQDQFH RI WKH SODQWV3KRWRV\QWKHVLVDOVRUHOHDVHVR[\JHQLQWRWKHDWPRVSKHUH 5HVSLUDWLRQLVWKHUHYHUVHRIHTXDWLRQ'XULQJUHVSLUDWLRQOLYLQJRUJDQLVPV EUHDNGRZQFRPSOH[FRPSRXQGVLQWRJOXFRVHZKLFKLVVXEVHTXHQWO\FRQYHUWHG LQWRFDUERQGLR[LGHDQGZDWHU7KHIRUPHUUHWXUQVWRWKHDWPRVSKHUH &2 IURP WKH DWPRVSKHUH DOVR GLVVROYHV LQ VHDZDWHU 5HVSLUDWLRQ E\ OLYLQJ WKLQJVLQWKHVHDUHWXUQVWKH&2WRWKHRFHDQVRUDWPRVSKHUH$VPDOOSRUWLRQRI WKH GHDG RUJDQLF PDWWHU JHWV EXULHG LQ WKH VHGLPHQWV 7KH VORZ DQG V\VWHPDWLF DFFXPXODWLRQRIRUJDQLFPDWWHURYHUVHYHUDOPLOOLRQ\HDUVLVWKHVRXUFHRIRLOJDV DQG FRDO :KHQ WKHVH DUH EXUQW DJDLQ &2 LV UHOHDVHG LQWR WKH DWPRVSKHUH 8QUHVWUDLQHGEXUQLQJRIVXFKQDWXUDOUHVRXUFHVDQGUDSLGDFFXPXODWLRQRI&2LQ WKH DWPRVSKHUH LV WKH FDXVH RI ZRUU\ DV IDU DV JOREDO ZDUPLQJ LV FRQFHUQHG 'HIRUHVWDWLRQ DOVR UHGXFHV WKH DYDLODEOH SODQW UHVRXUFHV IRU WKH SKRWRV\QWKHWLF SURFHVV OHDGLQJ WR ORZHU UHPRYDO UDWH RI DWPRVSKHULF FDUERQ GLR[LGH %LRJHRFKHPLFDOFDUERQF\FOHLVSUHVHQWHGLQ)LJ

&DUERK\GUDWHVDUHIXUWKHUXWLOL]HGWREXLOGFRPSOH[RUJDQLFPROHFXOHVUHTXLUHG IRU SODQW JURZWK 7KH\ DUH DOVR WKH HQHUJ\ VRXUFHV IRU WKH VXVWHQDQFH RI WKH SODQWV3KRWRV\QWKHVLVDOVRUHOHDVHVR[\JHQLQWRWKHDWPRVSKHUH 5HVSLUDWLRQLVWKHUHYHUVHRIHTXDWLRQ'XULQJUHVSLUDWLRQOLYLQJRUJDQLVPV EUHDNGRZQFRPSOH[FRPSRXQGVLQWRJOXFRVHZKLFKLVVXEVHTXHQWO\FRQYHUWHG LQWRFDUERQGLR[LGHDQGZDWHU7KHIRUPHUUHWXUQVWRWKHDWPRVSKHUH &2 IURP WKH DWPRVSKHUH DOVR GLVVROYHV LQ VHDZDWHU 5HVSLUDWLRQ E\ OLYLQJ WKLQJVLQWKHVHDUHWXUQVWKH&2WRWKHRFHDQVRUDWPRVSKHUH$VPDOOSRUWLRQRI WKH GHDG RUJDQLF PDWWHU JHWV EXULHG LQ WKH VHGLPHQWV 7KH VORZ DQG V\VWHPDWLF DFFXPXODWLRQRIRUJDQLFPDWWHURYHUVHYHUDOPLOOLRQ\HDUVLVWKHVRXUFHRIRLOJDV DQG FRDO :KHQ WKHVH DUH EXUQW DJDLQ &2 LV UHOHDVHG LQWR WKH DWPRVSKHUH 8QUHVWUDLQHGEXUQLQJRIVXFKQDWXUDOUHVRXUFHVDQGUDSLGDFFXPXODWLRQRI&2LQ WKH DWPRVSKHUH LV WKH FDXVH RI ZRUU\ DV IDU DV JOREDO ZDUPLQJ LV FRQFHUQHG 'HIRUHVWDWLRQ DOVR UHGXFHV WKH DYDLODEOH SODQW UHVRXUFHV IRU WKH SKRWRV\QWKHWLF SURFHVV OHDGLQJ WR ORZHU UHPRYDO UDWH RI DWPRVSKHULF FDUERQ GLR[LGH %LRJHRFKHPLFDOFDUERQF\FOHLVSUHVHQWHGLQ)LJ

Atmospheric pool 760

Atmospheric pool 760

35 10

Respiration

100

97 Oceans

Living organic matter 450 Land

25

Photosynthesis 40

Ocean surface 500

Living organic matter 10

Dead organic matter 700

20 Fossil fuel combustion

@ &RDO 2LO IURP VKDOH

6\QWKHWLF IXHOV 2LO *DV IURP IURP FRDO FRDO

1RQ IRVVLO IXHO

 

 

 

 

 

 

 















)DFWRU

WRQ&TXDG 4XDGV\U &DUERQHPLVVLRQV *W &\U

1DWXUDO &RQYHQWLRQDO JDV RLO

&RDO 2LO IURP VKDOH

6\QWKHWLF IXHOV 2LO *DV IURP IURP FRDO FRDO

1RQ IRVVLO IXHO

 

 

 

 

 

 

 















RQO\DQHJOLJLEOHSRUWLRQWRWKHZRUOG¶VFDUERQORDG2QSHUFDSLWDEDVLVWKH8QLWHG 6WDWHVHPLWVILYHWLPHVWKHFDUERQGLR[LGHWKDQWKHZRUOGDYHUDJH 2QXQLWEDVLVDERXWFDUERQLVUHOHDVHGSHUXQLWRIWKHHQHUJ\ZKHQFRDO LVXVHG1DWXUDOJDVUHOHDVHVRQO\RIFDUERQDVFRPSDUHGWRFRDO2LODQGJDV GHULYHGIURPFRDODFWXDOO\UHOHDVHVQHDUO\GRXEOHWKHFDUERQLQFRPSDULVRQIURP FRDO ,I WKH VDPH WUHQG FRQWLQXHV WKH SUHLQGXVWULDO &2 FRQFHQWUDWLRQV ZRXOG GRXEOHE\&RPSXWHUPRGHOVDFWXDOO\SUHGLFW± R&LQFUHDVHLQWKHHDUWK¶V WHPSHUDWXUHE\7KHPDJQLWXGHRIWKHSUREOHPFDQEHJDXJHGE\WKHIDFW WKDWWKHODVWLFHDJHDERXW\HDUVDJRKDGFDXVHGRQO\R&WHPSHUDWXUH FKDQJH7DEOHVKRZVWKHFDUERQHPLVVLRQIDFWRUVIRUYDULRXVIXHOVDQGFXUUHQW ZRUOG UHVRXUFHV

RQO\DQHJOLJLEOHSRUWLRQWRWKHZRUOG¶VFDUERQORDG2QSHUFDSLWDEDVLVWKH8QLWHG 6WDWHVHPLWVILYHWLPHVWKHFDUERQGLR[LGHWKDQWKHZRUOGDYHUDJH 2QXQLWEDVLVDERXWFDUERQLVUHOHDVHGSHUXQLWRIWKHHQHUJ\ZKHQFRDO LVXVHG1DWXUDOJDVUHOHDVHVRQO\RIFDUERQDVFRPSDUHGWRFRDO2LODQGJDV GHULYHGIURPFRDODFWXDOO\UHOHDVHVQHDUO\GRXEOHWKHFDUERQLQFRPSDULVRQIURP FRDO ,I WKH VDPH WUHQG FRQWLQXHV WKH SUHLQGXVWULDO &2 FRQFHQWUDWLRQV ZRXOG GRXEOHE\&RPSXWHUPRGHOVDFWXDOO\SUHGLFW± R&LQFUHDVHLQWKHHDUWK¶V WHPSHUDWXUHE\7KHPDJQLWXGHRIWKHSUREOHPFDQEHJDXJHGE\WKHIDFW WKDWWKHODVWLFHDJHDERXW\HDUVDJRKDGFDXVHGRQO\R&WHPSHUDWXUH FKDQJH7DEOHVKRZVWKHFDUERQHPLVVLRQIDFWRUVIRUYDULRXVIXHOVDQGFXUUHQW ZRUOG UHVRXUFHV

7DEOH  *OREDO FDUERQ FRQWHQW²UHVHUYHV DQG UHVRXUFHV

7DEOH  *OREDO FDUERQ FRQWHQW²UHVHUYHV DQG UHVRXUFHV

)RVVLO IXHOV 5HVHUYHV 4XDGV *W& 5HVRXUFHV 4XDGV *W&

*DV

2LO

&RDO

 

 

 

 

 

 

7KH HPLVVLRQ IDFWRUV JLYHQ DERYH IRU FDUERQ ORDGLQJ FDQ EH FRQVLGHUDEO\ UHGXFHGE\VZLWFKLQJIURPFRDOWRRLORUQDWXUDOJDV7KLVLVQRWVRHDV\EHFDXVH PRVWRIWKHZRUOG¶VIRVVLOIXHOVDUHLQWKHIRUPRIFRDO8QIRUWXQDWHO\LWLVWKHFRDO EXUQLQJWKDWKROGVWKHJUHDWHVWWKUHDWWRWKHJOREDOFDUERQGLR[LGHHPLVVLRQVZKLFK FRXOG LQFUHDVH E\  WLPHV 7KH IDFW WKDW 86 5XVVLD &KLQD 6RXWK $IULFD DQG :HVW*HUPDQ\WRJHWKHUKDYHRIWKHZRUOG¶VFRDOUHVHUYHVVXJJHVWVWKDWWKH RQXVUHVWVPDLQO\ZLWKWKHVHFRXQWULHVWRGHFLGHWKHIXWXUHDFWLRQZLWKUHVSHFWWR JOREDOZDUPLQJ

)RVVLO IXHOV 5HVHUYHV 4XDGV *W& 5HVRXUFHV 4XDGV *W&

*DV

2LO

&RDO

 

 

 

 

 

 

7KH HPLVVLRQ IDFWRUV JLYHQ DERYH IRU FDUERQ ORDGLQJ FDQ EH FRQVLGHUDEO\ UHGXFHGE\VZLWFKLQJIURPFRDOWRRLORUQDWXUDOJDV7KLVLVQRWVRHDV\EHFDXVH PRVWRIWKHZRUOG¶VIRVVLOIXHOVDUHLQWKHIRUPRIFRDO8QIRUWXQDWHO\LWLVWKHFRDO EXUQLQJWKDWKROGVWKHJUHDWHVWWKUHDWWRWKHJOREDOFDUERQGLR[LGHHPLVVLRQVZKLFK FRXOG LQFUHDVH E\  WLPHV 7KH IDFW WKDW 86 5XVVLD &KLQD 6RXWK $IULFD DQG :HVW*HUPDQ\WRJHWKHUKDYHRIWKHZRUOG¶VFRDOUHVHUYHVVXJJHVWVWKDWWKH RQXVUHVWVPDLQO\ZLWKWKHVHFRXQWULHVWRGHFLGHWKHIXWXUHDFWLRQZLWKUHVSHFWWR JOREDOZDUPLQJ

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7KLV GRHV QRW PHDQ WKDW RWKHU FRXQWULHV FDQ GLVWDQFH WKHPVHOYHV IURP WKH SUREOHP,QVRPHIRUPRUWKHRWKHUDOPRVWDOOFRXQWULHVXVHFRDOLPSRUWHGIURP WKHVHFRXQWULHVDQGE\ZLOORUGHVLJQZHDUHDOOSDUWRIWKHJOREDOZDUPLQJVFHQDULR ,Q IDFW WKHUH LV D VWURQJ ZRUOG OREE\ FRPSULVLQJ RI 86$ DQG $XVWUDOLD ZKLFKDUJXHVWKHQHHGWRUHLJQLQSROOXWLRQLQ,QGLDDQG&KLQDEHIRUHWKH\FDQVLJQ RQWRDVXFFHVVRURIWKH.\RWRSURWRFROWKDWLVWRH[SLUHLQ7KH1HWKHUODQGV (QYLURQPHQWDO$VVHVVPHQW$JHQF\KDVYDOLGDWHGWKH,QWHUQDWLRQDO(QHUJ\$JHQF\¶V DVVHUWLRQWKDW&KLQDZLOORYHUWDNHWKH86DVWKHODUJHVWHPLWWRURIJOREDOZDUPLQJ JDVHV&KLQD¶VSROOXWLRQQXPEHUVDUHODUJHVWLQJURVVWHUPVDQGZLOOFRQWLQXHWR JURZDVLWVSROOXWLRQLVOLQNHGWRLWVHFRQRPLFSURJUHVV2QDQDYHUDJHWKH86 SHU FDSLWDSROOXWLRQLVWRQVFRPSDUHGWR5XVVLDDWWRQV:HVWHUQ(XURSH DWWRQV&KLQDDWWRQVDQG,QGLDDWWRQV )XWXUHFDUERQHPLVVLRQVFHQDULRFDQEHGHWHUPLQHGE\DVVXPLQJDQH[SRQHQWLDO UHODWLRQVKLSDPRQJHDFKIDFWRUFRQWULEXWLQJWRWKHJOREDOVFHQDULR6LQFHWKLVHQWLW\ LVDOVRUHODWHGWRWKHRYHUDOOJURZWKUDWHUZHFDQZULWH

7KLV GRHV QRW PHDQ WKDW RWKHU FRXQWULHV FDQ GLVWDQFH WKHPVHOYHV IURP WKH SUREOHP,QVRPHIRUPRUWKHRWKHUDOPRVWDOOFRXQWULHVXVHFRDOLPSRUWHGIURP WKHVHFRXQWULHVDQGE\ZLOORUGHVLJQZHDUHDOOSDUWRIWKHJOREDOZDUPLQJVFHQDULR ,Q IDFW WKHUH LV D VWURQJ ZRUOG OREE\ FRPSULVLQJ RI 86$ DQG $XVWUDOLD ZKLFKDUJXHVWKHQHHGWRUHLJQLQSROOXWLRQLQ,QGLDDQG&KLQDEHIRUHWKH\FDQVLJQ RQWRDVXFFHVVRURIWKH.\RWRSURWRFROWKDWLVWRH[SLUHLQ7KH1HWKHUODQGV (QYLURQPHQWDO$VVHVVPHQW$JHQF\KDVYDOLGDWHGWKH,QWHUQDWLRQDO(QHUJ\$JHQF\¶V DVVHUWLRQWKDW&KLQDZLOORYHUWDNHWKH86DVWKHODUJHVWHPLWWRURIJOREDOZDUPLQJ JDVHV&KLQD¶VSROOXWLRQQXPEHUVDUHODUJHVWLQJURVVWHUPVDQGZLOOFRQWLQXHWR JURZDVLWVSROOXWLRQLVOLQNHGWRLWVHFRQRPLFSURJUHVV2QDQDYHUDJHWKH86 SHU FDSLWDSROOXWLRQLVWRQVFRPSDUHGWR5XVVLDDWWRQV:HVWHUQ(XURSH DWWRQV&KLQDDWWRQVDQG,QGLDDWWRQV )XWXUHFDUERQHPLVVLRQVFHQDULRFDQEHGHWHUPLQHGE\DVVXPLQJDQH[SRQHQWLDO UHODWLRQVKLSDPRQJHDFKIDFWRUFRQWULEXWLQJWRWKHJOREDOVFHQDULR6LQFHWKLVHQWLW\ LVDOVRUHODWHGWRWKHRYHUDOOJURZWKUDWHUZHFDQZULWH

U

USRSXODWLRQ  UHQHUJ\  *13  UHPLVVLRQ  J$  3



ZKHUHULVLQGLYLGXDOJURZWKUDWHLQWKHH[SRQHQWLDOIRUP 8VLQJ YDULRXV UHDOLVWLF HPLVVLRQ VFHQDULRV :RUOG 5HVRXUFHV ,QVWLWXWH KDV FRPSXWHGFDUERQHPLVVLRQVWRYDU\IURP±JLJDWRQVSHU\HDUDVVKRZQLQ)LJ  7KLVVFHQDULRDVVXPHVWKDWWKHUHZRXOGEHQRHQHUJ\JURZWKQRQHZSROLFLHV WRUHGXFH&2QRLPSURYHPHQWLQWKHHIILFLHQF\RIWKHH[LVWLQJWHFKQRORJLHVQR DOWHUQDWHHQHUJ\XWLOL]DWLRQDQGQRIUHVKSROLF\WRUHGXFHGHIRUHVWDWLRQQRUHQFRXUDJH UHIRUHVWDWLRQ7KLVVLWXDWLRQLVQRWWHQDEOHDVQRVRFLHW\FDQFRQWLQXHWROLYHOLNH WKLV,QDFWXDOLW\³PRUHFRQVXPSWLRQPRUHGHIRUHVWDWLRQ´ZRXOGEHWKHZRUVWFDVH VFHQDULR $OOWKHPRGHOVLQWKHHQGPXVWDGGUHVVWKHH[SHFWHGFKDQJHLQWKHFOLPDWH &XUUHQWXQGHUVWDQGLQJLVWKDWDGRXEOLQJRI&2 FRQFHQWUDWLRQZRXOGUHVXOWLQD JOREDODYHUDJHWHPSHUDWXUHUDLVHRI± R&7KHH[DFWFKDQJHVDUHGLIILFXOWWR SUHGLFWEHFDXVHRIWKHGLIILFXOW\LQPRGHOOLQJFOLPDWHIHHGEDFNVFHQDULR+RZHYHU WKHHIIHFWRIFDUERQGLR[LGHRQWKHHTXLOLEULXPJOREDOVXUIDFHWHPSHUDWXUHLVPRGHOOHG DVDORJDULWKPLFIXQFWLRQRIWKHW\SH '7

'7G ª &2  º OQ « » OQ  ¬ &2   ¼

U

USRSXODWLRQ  UHQHUJ\  *13  UHPLVVLRQ  J$  3



ZKHUHULVLQGLYLGXDOJURZWKUDWHLQWKHH[SRQHQWLDOIRUP 8VLQJ YDULRXV UHDOLVWLF HPLVVLRQ VFHQDULRV :RUOG 5HVRXUFHV ,QVWLWXWH KDV FRPSXWHGFDUERQHPLVVLRQVWRYDU\IURP±JLJDWRQVSHU\HDUDVVKRZQLQ)LJ  7KLVVFHQDULRDVVXPHVWKDWWKHUHZRXOGEHQRHQHUJ\JURZWKQRQHZSROLFLHV WRUHGXFH&2QRLPSURYHPHQWLQWKHHIILFLHQF\RIWKHH[LVWLQJWHFKQRORJLHVQR DOWHUQDWHHQHUJ\XWLOL]DWLRQDQGQRIUHVKSROLF\WRUHGXFHGHIRUHVWDWLRQQRUHQFRXUDJH UHIRUHVWDWLRQ7KLVVLWXDWLRQLVQRWWHQDEOHDVQRVRFLHW\FDQFRQWLQXHWROLYHOLNH WKLV,QDFWXDOLW\³PRUHFRQVXPSWLRQPRUHGHIRUHVWDWLRQ´ZRXOGEHWKHZRUVWFDVH VFHQDULR $OOWKHPRGHOVLQWKHHQGPXVWDGGUHVVWKHH[SHFWHGFKDQJHLQWKHFOLPDWH &XUUHQWXQGHUVWDQGLQJLVWKDWDGRXEOLQJRI&2 FRQFHQWUDWLRQZRXOGUHVXOWLQD JOREDODYHUDJHWHPSHUDWXUHUDLVHRI± R&7KHH[DFWFKDQJHVDUHGLIILFXOWWR SUHGLFWEHFDXVHRIWKHGLIILFXOW\LQPRGHOOLQJFOLPDWHIHHGEDFNVFHQDULR+RZHYHU WKHHIIHFWRIFDUERQGLR[LGHRQWKHHTXLOLEULXPJOREDOVXUIDFHWHPSHUDWXUHLVPRGHOOHG DVDORJDULWKPLFIXQFWLRQRIWKHW\SH '7



'7G ª &2  º OQ « » OQ  ¬ &2   ¼



ZKHUH'7LVWKHHTXLOLEULXPJOREDODYHUDJHFKDQJHLQVXUIDFHWHPSHUDWXUH'7GLV WKH HTXLOLEULXP WHPSHUDWXUH FKDQJH SUHGLFWHG IRU GRXEOLQJ RI 2 &2  LV WKH FRQFHQWUDWLRQRI&2LQIXWXUHWLPHDQG&2 LVWKHLQLWLDOFRQFHQWUDWLRQRIFDUERQ GLR[LGH

ZKHUH'7LVWKHHTXLOLEULXPJOREDODYHUDJHFKDQJHLQVXUIDFHWHPSHUDWXUH'7GLV WKH HTXLOLEULXP WHPSHUDWXUH FKDQJH SUHGLFWHG IRU GRXEOLQJ RI 2 &2  LV WKH FRQFHQWUDWLRQRI&2LQIXWXUHWLPHDQG&2 LVWKHLQLWLDOFRQFHQWUDWLRQRIFDUERQ GLR[LGH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7KLV GRHV QRW PHDQ WKDW RWKHU FRXQWULHV FDQ GLVWDQFH WKHPVHOYHV IURP WKH SUREOHP,QVRPHIRUPRUWKHRWKHUDOPRVWDOOFRXQWULHVXVHFRDOLPSRUWHGIURP WKHVHFRXQWULHVDQGE\ZLOORUGHVLJQZHDUHDOOSDUWRIWKHJOREDOZDUPLQJVFHQDULR ,Q IDFW WKHUH LV D VWURQJ ZRUOG OREE\ FRPSULVLQJ RI 86$ DQG $XVWUDOLD ZKLFKDUJXHVWKHQHHGWRUHLJQLQSROOXWLRQLQ,QGLDDQG&KLQDEHIRUHWKH\FDQVLJQ RQWRDVXFFHVVRURIWKH.\RWRSURWRFROWKDWLVWRH[SLUHLQ7KH1HWKHUODQGV (QYLURQPHQWDO$VVHVVPHQW$JHQF\KDVYDOLGDWHGWKH,QWHUQDWLRQDO(QHUJ\$JHQF\¶V DVVHUWLRQWKDW&KLQDZLOORYHUWDNHWKH86DVWKHODUJHVWHPLWWRURIJOREDOZDUPLQJ JDVHV&KLQD¶VSROOXWLRQQXPEHUVDUHODUJHVWLQJURVVWHUPVDQGZLOOFRQWLQXHWR JURZDVLWVSROOXWLRQLVOLQNHGWRLWVHFRQRPLFSURJUHVV2QDQDYHUDJHWKH86 SHU FDSLWDSROOXWLRQLVWRQVFRPSDUHGWR5XVVLDDWWRQV:HVWHUQ(XURSH DWWRQV&KLQDDWWRQVDQG,QGLDDWWRQV )XWXUHFDUERQHPLVVLRQVFHQDULRFDQEHGHWHUPLQHGE\DVVXPLQJDQH[SRQHQWLDO UHODWLRQVKLSDPRQJHDFKIDFWRUFRQWULEXWLQJWRWKHJOREDOVFHQDULR6LQFHWKLVHQWLW\ LVDOVRUHODWHGWRWKHRYHUDOOJURZWKUDWHUZHFDQZULWH

7KLV GRHV QRW PHDQ WKDW RWKHU FRXQWULHV FDQ GLVWDQFH WKHPVHOYHV IURP WKH SUREOHP,QVRPHIRUPRUWKHRWKHUDOPRVWDOOFRXQWULHVXVHFRDOLPSRUWHGIURP WKHVHFRXQWULHVDQGE\ZLOORUGHVLJQZHDUHDOOSDUWRIWKHJOREDOZDUPLQJVFHQDULR ,Q IDFW WKHUH LV D VWURQJ ZRUOG OREE\ FRPSULVLQJ RI 86$ DQG $XVWUDOLD ZKLFKDUJXHVWKHQHHGWRUHLJQLQSROOXWLRQLQ,QGLDDQG&KLQDEHIRUHWKH\FDQVLJQ RQWRDVXFFHVVRURIWKH.\RWRSURWRFROWKDWLVWRH[SLUHLQ7KH1HWKHUODQGV (QYLURQPHQWDO$VVHVVPHQW$JHQF\KDVYDOLGDWHGWKH,QWHUQDWLRQDO(QHUJ\$JHQF\¶V DVVHUWLRQWKDW&KLQDZLOORYHUWDNHWKH86DVWKHODUJHVWHPLWWRURIJOREDOZDUPLQJ JDVHV&KLQD¶VSROOXWLRQQXPEHUVDUHODUJHVWLQJURVVWHUPVDQGZLOOFRQWLQXHWR JURZDVLWVSROOXWLRQLVOLQNHGWRLWVHFRQRPLFSURJUHVV2QDQDYHUDJHWKH86 SHU FDSLWDSROOXWLRQLVWRQVFRPSDUHGWR5XVVLDDWWRQV:HVWHUQ(XURSH DWWRQV&KLQDDWWRQVDQG,QGLDDWWRQV )XWXUHFDUERQHPLVVLRQVFHQDULRFDQEHGHWHUPLQHGE\DVVXPLQJDQH[SRQHQWLDO UHODWLRQVKLSDPRQJHDFKIDFWRUFRQWULEXWLQJWRWKHJOREDOVFHQDULR6LQFHWKLVHQWLW\ LVDOVRUHODWHGWRWKHRYHUDOOJURZWKUDWHUZHFDQZULWH

U

USRSXODWLRQ  UHQHUJ\  *13  UHPLVVLRQ  J$  3



ZKHUHULVLQGLYLGXDOJURZWKUDWHLQWKHH[SRQHQWLDOIRUP 8VLQJ YDULRXV UHDOLVWLF HPLVVLRQ VFHQDULRV :RUOG 5HVRXUFHV ,QVWLWXWH KDV FRPSXWHGFDUERQHPLVVLRQVWRYDU\IURP±JLJDWRQVSHU\HDUDVVKRZQLQ)LJ  7KLVVFHQDULRDVVXPHVWKDWWKHUHZRXOGEHQRHQHUJ\JURZWKQRQHZSROLFLHV WRUHGXFH&2QRLPSURYHPHQWLQWKHHIILFLHQF\RIWKHH[LVWLQJWHFKQRORJLHVQR DOWHUQDWHHQHUJ\XWLOL]DWLRQDQGQRIUHVKSROLF\WRUHGXFHGHIRUHVWDWLRQQRUHQFRXUDJH UHIRUHVWDWLRQ7KLVVLWXDWLRQLVQRWWHQDEOHDVQRVRFLHW\FDQFRQWLQXHWROLYHOLNH WKLV,QDFWXDOLW\³PRUHFRQVXPSWLRQPRUHGHIRUHVWDWLRQ´ZRXOGEHWKHZRUVWFDVH VFHQDULR $OOWKHPRGHOVLQWKHHQGPXVWDGGUHVVWKHH[SHFWHGFKDQJHLQWKHFOLPDWH &XUUHQWXQGHUVWDQGLQJLVWKDWDGRXEOLQJRI&2 FRQFHQWUDWLRQZRXOGUHVXOWLQD JOREDODYHUDJHWHPSHUDWXUHUDLVHRI± R&7KHH[DFWFKDQJHVDUHGLIILFXOWWR SUHGLFWEHFDXVHRIWKHGLIILFXOW\LQPRGHOOLQJFOLPDWHIHHGEDFNVFHQDULR+RZHYHU WKHHIIHFWRIFDUERQGLR[LGHRQWKHHTXLOLEULXPJOREDOVXUIDFHWHPSHUDWXUHLVPRGHOOHG DVDORJDULWKPLFIXQFWLRQRIWKHW\SH '7

'7G ª &2  º OQ « » OQ  ¬ &2   ¼



ZKHUH'7LVWKHHTXLOLEULXPJOREDODYHUDJHFKDQJHLQVXUIDFHWHPSHUDWXUH'7GLV WKH HTXLOLEULXP WHPSHUDWXUH FKDQJH SUHGLFWHG IRU GRXEOLQJ RI 2 &2  LV WKH FRQFHQWUDWLRQRI&2LQIXWXUHWLPHDQG&2 LVWKHLQLWLDOFRQFHQWUDWLRQRIFDUERQ GLR[LGH

U

USRSXODWLRQ  UHQHUJ\  *13  UHPLVVLRQ  J$  3



ZKHUHULVLQGLYLGXDOJURZWKUDWHLQWKHH[SRQHQWLDOIRUP 8VLQJ YDULRXV UHDOLVWLF HPLVVLRQ VFHQDULRV :RUOG 5HVRXUFHV ,QVWLWXWH KDV FRPSXWHGFDUERQHPLVVLRQVWRYDU\IURP±JLJDWRQVSHU\HDUDVVKRZQLQ)LJ  7KLVVFHQDULRDVVXPHVWKDWWKHUHZRXOGEHQRHQHUJ\JURZWKQRQHZSROLFLHV WRUHGXFH&2QRLPSURYHPHQWLQWKHHIILFLHQF\RIWKHH[LVWLQJWHFKQRORJLHVQR DOWHUQDWHHQHUJ\XWLOL]DWLRQDQGQRIUHVKSROLF\WRUHGXFHGHIRUHVWDWLRQQRUHQFRXUDJH UHIRUHVWDWLRQ7KLVVLWXDWLRQLVQRWWHQDEOHDVQRVRFLHW\FDQFRQWLQXHWROLYHOLNH WKLV,QDFWXDOLW\³PRUHFRQVXPSWLRQPRUHGHIRUHVWDWLRQ´ZRXOGEHWKHZRUVWFDVH VFHQDULR $OOWKHPRGHOVLQWKHHQGPXVWDGGUHVVWKHH[SHFWHGFKDQJHLQWKHFOLPDWH &XUUHQWXQGHUVWDQGLQJLVWKDWDGRXEOLQJRI&2 FRQFHQWUDWLRQZRXOGUHVXOWLQD JOREDODYHUDJHWHPSHUDWXUHUDLVHRI± R&7KHH[DFWFKDQJHVDUHGLIILFXOWWR SUHGLFWEHFDXVHRIWKHGLIILFXOW\LQPRGHOOLQJFOLPDWHIHHGEDFNVFHQDULR+RZHYHU WKHHIIHFWRIFDUERQGLR[LGHRQWKHHTXLOLEULXPJOREDOVXUIDFHWHPSHUDWXUHLVPRGHOOHG DVDORJDULWKPLFIXQFWLRQRIWKHW\SH '7

'7G ª &2  º OQ « » OQ  ¬ &2   ¼



ZKHUH'7LVWKHHTXLOLEULXPJOREDODYHUDJHFKDQJHLQVXUIDFHWHPSHUDWXUH'7GLV WKH HTXLOLEULXP WHPSHUDWXUH FKDQJH SUHGLFWHG IRU GRXEOLQJ RI 2 &2  LV WKH FRQFHQWUDWLRQRI&2LQIXWXUHWLPHDQG&2 LVWKHLQLWLDOFRQFHQWUDWLRQRIFDUERQ GLR[LGH

*OREDO&OLPDWH&KDQJH 

*OREDO&OLPDWH&KDQJH 

32

32

30

30

28

High emission

28

Base case

Base case

26

26

X Modest policies

X Modest policies 24

Slow buildup

Giga tons of carbon per year

Giga tons of carbon per year

24 22 20 18 16 14 12 10

X

20 18 16 14 12

X

6

X

4

2

2

0 1975

0 1975

2000

X X

8

X

6

Slow buildup

22

10

X

8

4

High emission

2035

2050

2075

X

2000

2035

Year

2050

2075

Year

)LJ)XWXUHFDUERQHPLVVLRQVFHQDULR

)LJ)XWXUHFDUERQHPLVVLRQVFHQDULR

6LQFHWKLVHTXDWLRQLVLQORJDULWKPLFIRUPHYHU\GRXEOLQJRI&2UDLVHVWKH WHPSHUDWXUH E\ WKH VDPH DPRXQW )RU H[DPSOH LI 7G LV R& HYHU\ GRXEOLQJ RI &2ZLOOLQFUHDVH7GE\R&RQO\*OREDODYHUDJHWHPSHUDWXUHFKDQJHVSURMHFWHG E\ *RGGDUG ,QVWLWXWH RI 6SDFH 6FLHQFHV DUH RQO\ R& RYHU WKH SDVW KXQGUHG \HDUV RU VR DIWHU WKH FRUUHFWLRQ RI KHDW LVODQGV RFFXUULQJ GXH WR XUEDQ FHQWUHV DWWULEXWHGWRJUHHQKRXVHHIIHFW7KLVFRQFOXVLRQLVVWLOOXQFHUWDLQ%XWRQHWKLQJLV FHUWDLQ &KDQJHV LQ WKH HDUWK¶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±PHWUHVRIWKHRFHDQVWRHTXLOLEUDWHZLWKWKHDWPRVSKHUH LWZRXOGWDNHSHUKDSV\HDUVIRUNPGHSWKRIWKHRFHDQWRPL[ZHOO7KHUHIRUH

6LQFHWKLVHTXDWLRQLVLQORJDULWKPLFIRUPHYHU\GRXEOLQJRI&2UDLVHVWKH WHPSHUDWXUH E\ WKH VDPH DPRXQW )RU H[DPSOH LI 7G LV R& HYHU\ GRXEOLQJ RI &2ZLOOLQFUHDVH7GE\R&RQO\*OREDODYHUDJHWHPSHUDWXUHFKDQJHVSURMHFWHG E\ *RGGDUG ,QVWLWXWH RI 6SDFH 6FLHQFHV DUH RQO\ R& RYHU WKH SDVW KXQGUHG \HDUV RU VR DIWHU WKH FRUUHFWLRQ RI KHDW LVODQGV RFFXUULQJ GXH WR XUEDQ FHQWUHV DWWULEXWHGWRJUHHQKRXVHHIIHFW7KLVFRQFOXVLRQLVVWLOOXQFHUWDLQ%XWRQHWKLQJLV FHUWDLQ &KDQJHV LQ WKH HDUWK¶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±PHWUHVRIWKHRFHDQVWRHTXLOLEUDWHZLWKWKHDWPRVSKHUH LWZRXOGWDNHSHUKDSV\HDUVIRUNPGHSWKRIWKHRFHDQWRPL[ZHOO7KHUHIRUH

*OREDO&OLPDWH&KDQJH 

*OREDO&OLPDWH&KDQJH 

32

32

30 28

30 High emission

28

Base case

Base case

26

26

X Modest policies

X Modest policies 24

Slow buildup

Giga tons of carbon per year

Giga tons of carbon per year

24 22 20 18 16 14 12 10

X X

8

20 18 16 14 12 10

X X X

6

X

4

2 0 1975

Slow buildup

22

8

X

6 4

High emission

X

2 2000

2035

2050

2075

Year

0 1975

2000

2035

2050

2075

Year

)LJ)XWXUHFDUERQHPLVVLRQVFHQDULR

)LJ)XWXUHFDUERQHPLVVLRQVFHQDULR

6LQFHWKLVHTXDWLRQLVLQORJDULWKPLFIRUPHYHU\GRXEOLQJRI&2UDLVHVWKH WHPSHUDWXUH E\ WKH VDPH DPRXQW )RU H[DPSOH LI 7G LV R& HYHU\ GRXEOLQJ RI &2ZLOOLQFUHDVH7GE\R&RQO\*OREDODYHUDJHWHPSHUDWXUHFKDQJHVSURMHFWHG E\ *RGGDUG ,QVWLWXWH RI 6SDFH 6FLHQFHV DUH RQO\ R& RYHU WKH SDVW KXQGUHG \HDUV RU VR DIWHU WKH FRUUHFWLRQ RI KHDW LVODQGV RFFXUULQJ GXH WR XUEDQ FHQWUHV DWWULEXWHGWRJUHHQKRXVHHIIHFW7KLVFRQFOXVLRQLVVWLOOXQFHUWDLQ%XWRQHWKLQJLV FHUWDLQ &KDQJHV LQ WKH HDUWK¶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±PHWUHVRIWKHRFHDQVWRHTXLOLEUDWHZLWKWKHDWPRVSKHUH LWZRXOGWDNHSHUKDSV\HDUVIRUNPGHSWKRIWKHRFHDQWRPL[ZHOO7KHUHIRUH

6LQFHWKLVHTXDWLRQLVLQORJDULWKPLFIRUPHYHU\GRXEOLQJRI&2UDLVHVWKH WHPSHUDWXUH E\ WKH VDPH DPRXQW )RU H[DPSOH LI 7G LV R& HYHU\ GRXEOLQJ RI &2ZLOOLQFUHDVH7GE\R&RQO\*OREDODYHUDJHWHPSHUDWXUHFKDQJHVSURMHFWHG E\ *RGGDUG ,QVWLWXWH RI 6SDFH 6FLHQFHV DUH RQO\ R& RYHU WKH SDVW KXQGUHG \HDUV RU VR DIWHU WKH FRUUHFWLRQ RI KHDW LVODQGV RFFXUULQJ GXH WR XUEDQ FHQWUHV DWWULEXWHGWRJUHHQKRXVHHIIHFW7KLVFRQFOXVLRQLVVWLOOXQFHUWDLQ%XWRQHWKLQJLV FHUWDLQ &KDQJHV LQ WKH HDUWK¶V WHPSHUDWXUH KDYH GHILQLWHO\ RFFXUUHG 1RZ LW LV DWWULEXWHGXQHTXLYRFDOO\WRFDUERQGLR[LGHDQGRWKHUJUHHQKRXVHJDVHV ,I ZH FRQVLGHU WKH REVHUYHG GDWD IRU FDUERQ GLR[LGH WR LQFUHDVH IURP  SSP WR  SSP LQ  DQG R& LQFUHDVH LQ GRXEOLQJ RI FDUERQ GLR[LGH '7 ZRUNVRXWWRR&6LQFHWKLVYDOXHLVZURQJE\DIDFWRURIRWKHUH[SODQDWLRQV DUHQHHGHGWRDFFRXQWIRUWKLVIDFW 2QHH[SODQDWLRQEHLQJIRUZDUGHGLVWKDWGXHWRWKHWKHUPDOLQHUWLDRIWKHRFHDQ DWLPHODJGHOD\ RFFXUVEHWZHHQWKHWLPHWKHFOLPDWHLVSHUWXUEHGDQGWKHHDUWK PRYHVWRQHZWHPSHUDWXUHHTXLOLEULXP:KLOHLWZRXOGWDNHRQO\DIHZ\HDUVIRU WKHZHOOPL[HGWRS ±PHWUHVRIWKHRFHDQVWRHTXLOLEUDWHZLWKWKHDWPRVSKHUH LWZRXOGWDNHSHUKDSV\HDUVIRUNPGHSWKRIWKHRFHDQWRPL[ZHOO7KHUHIRUH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

ZHDUHDOUHDG\FRPPLWWHGWRDQRWKHUR&LQFUHDVHLQWHPSHUDWXUHHYHQLIWKHUHLV QRIXUWKHUDGGLWLRQRIFDUERQGLR[LGH

ZHDUHDOUHDG\FRPPLWWHGWRDQRWKHUR&LQFUHDVHLQWHPSHUDWXUHHYHQLIWKHUHLV QRIXUWKHUDGGLWLRQRIFDUERQGLR[LGH

 27+(5*5((1+286(*$6(6

 27+(5*5((1+286(*$6(6

(YHQWKRXJKFDUERQGLR[LGHDVDJUHHQKRXVHJDVKDVEHHQGLVFXVVHGLQGHWDLOWLOO QRZPHWKDQHQLWURXVR[LGHR]RQHFKORURIOXRURFDUERQV&)&V DQGVHYHUDORWKHU WUDFH JDVHV DOVR DEVRUE KHDW PRUH VWURQJO\ DQG ZDUP WKH DWPRVSKHUH ,Q IDFW VRPH RI WKHVH JDVHV WUDS KHDW PXFK PRUH HIILFLHQWO\ WKDQ FDUERQ GLR[LGH )RU H[DPSOH PHWKDQH DEVRUEV ± WLPHV PRUH UDGLDWLRQ FRPSDUHG WR WKH VDPH TXDQWLW\RIFDUERQGLR[LGH6LPLODUO\&)&VDEVRUEDSSUR[LPDWHO\WLPHV PRUHUDGLDWLRQRQWKHVDPHVFDOH>@ 0HWKDQH LV SURGXFHG E\ YDULRXV PHFKDQLVPV LQ WKH HQYLURQPHQW &RZV EXIIDORHVDQGRWKHUERYLQHVKRVWPHWKDQHSURGXFLQJEDFWHULDLQWKHLUVWRPDFKV 'XULQJEHOFKLQJWKH\HPLWPHWKDQH$QDHURELFGHFRPSRVLWLRQRIZHWULFHILHOGV SLSH OHDNV GHFD\LQJ ZDVWHV ODQGILOOV DQG FRDO PLQHV DUH WKH RWKHU VRXUFHV RI PHWKDQH &XUUHQW PHWKDQH SURGXFWLRQ LQ ,QGLD DFFRXQWV IRU DQ LQFUHDVH RI SSPSHU\HDUDQGLQFUHDVLQJHYHU\\HDU6RPHHVWLPDWHVRIPHWKDQHSURGXFWLRQ LQWKHHQYLURQPHQWDUHJLYHQLQ7DEOH>@

(YHQWKRXJKFDUERQGLR[LGHDVDJUHHQKRXVHJDVKDVEHHQGLVFXVVHGLQGHWDLOWLOO QRZPHWKDQHQLWURXVR[LGHR]RQHFKORURIOXRURFDUERQV&)&V DQGVHYHUDORWKHU WUDFH JDVHV DOVR DEVRUE KHDW PRUH VWURQJO\ DQG ZDUP WKH DWPRVSKHUH ,Q IDFW VRPH RI WKHVH JDVHV WUDS KHDW PXFK PRUH HIILFLHQWO\ WKDQ FDUERQ GLR[LGH )RU H[DPSOH PHWKDQH DEVRUEV ±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

7DEOH0HWKDQHLQWKHHQYLURQPHQW

7DEOH0HWKDQHLQWKHHQYLURQPHQW

1DWXUDO VRXUFHV

&RQWULEXWLRQ 07\U

$QWKURSRJHQLF VRXUFHV

&RQWULEXWLRQ 07\U

6LQNV 07\U

&RQWULEXWLRQ 07

1DWXUDO VRXUFHV

&RQWULEXWLRQ 07\U

$QWKURSRJHQLF VRXUFHV

&RQWULEXWLRQ 07\U

6LQNV 07\U

&RQWULEXWLRQ 07

:HWODQGV

±

/DQGILOO

±

2[LGDWLRQ

±

:HWODQGV

±

/DQGILOO

±

2[LGDWLRQ

±

7HUPLWHV

±

$JUL EXUQLQJ

±

6WUDWRVSKHULF

±

7HUPLWHV

±

$JUL EXUQLQJ

±

6WUDWRVSKHULF

±

2FHDQV

±

3DGG\ ILHOGV

±

'HFRPSRVLWLRQ

2FHDQV

±

3DGG\ ILHOGV

±

'HFRPSRVLWLRQ

5XPLQDQWV

±

9HQWLQJ OHDNV HWF

±

6RLO DEVRUSWLRQ

5XPLQDQWV

±

9HQWLQJ OHDNV HWF

±

6RLO DEVRUSWLRQ

7XQGUD

±

0LQLQJ

±

7XQGUD

±

0LQLQJ

±

9ROFDQRHV

±

6HZDJH

±

9ROFDQRHV

±

6HZDJH

±

±

±

&KORURIOXRURFDUERQVDUHDQRWKHULPSRUWDQWFODVVRIFRPSRXQGVLPSOLFDWHGLQ WKHJOREDOZDUPLQJSKHQRPHQRQ%RWKFKORULQHDQGIOXRULQHDUHQRWWKHQDWXUDO FRPSRQHQWVRIWKHHDUWK¶VDWPRVSKHUHDQGKHQFHLWLVORJLFDOWRDVVXPHWKDWWKHUH DUHQRVFDYHQJLQJPHFKDQLVPVIRUWKHUHPRYDORIWKHVHHOHPHQWVRUPROHFXOHV &RQVHTXHQWO\WKH\H[KLELWORQJDWPRVSKHULFOLIHWLPHV&)&VDEVRUEHOHFWURPDJQHWLF UDGLDWLRQVWURQJO\LQ±PPDQGKHQFHWKH\KDYHJUHDWSRWHQWLDOIRUJOREDOZDUPLQJ DVZHOODVVWUDWRVSKHULFR]RQHGHSOHWLRQ&)&KDVFKORULQHDQGH[KLELWV VWURQJDEVRUSWLRQEDQGVDWDQG—P,WVDWPRVSKHULFUHVLGHQFHWLPHLV ±\HDUV6LPLODUO\&)&KDVFKORULQHWKDWH[KLELWVDEVRUSWLRQEDQGV DWDQGPP,WVDWPRVSKHULFUHVLGHQFHWLPHLV ± \HDUV,Q

&KORURIOXRURFDUERQVDUHDQRWKHULPSRUWDQWFODVVRIFRPSRXQGVLPSOLFDWHGLQ WKHJOREDOZDUPLQJSKHQRPHQRQ%RWKFKORULQHDQGIOXRULQHDUHQRWWKHQDWXUDO FRPSRQHQWVRIWKHHDUWK¶VDWPRVSKHUHDQGKHQFHLWLVORJLFDOWRDVVXPHWKDWWKHUH DUHQRVFDYHQJLQJPHFKDQLVPVIRUWKHUHPRYDORIWKHVHHOHPHQWVRUPROHFXOHV &RQVHTXHQWO\WKH\H[KLELWORQJDWPRVSKHULFOLIHWLPHV&)&VDEVRUEHOHFWURPDJQHWLF UDGLDWLRQVWURQJO\LQ±PPDQGKHQFHWKH\KDYHJUHDWSRWHQWLDOIRUJOREDOZDUPLQJ DVZHOODVVWUDWRVSKHULFR]RQHGHSOHWLRQ&)&KDVFKORULQHDQGH[KLELWV VWURQJDEVRUSWLRQEDQGVDWDQG—P,WVDWPRVSKHULFUHVLGHQFHWLPHLV ±\HDUV6LPLODUO\&)&KDVFKORULQHWKDWH[KLELWVDEVRUSWLRQEDQGV DWDQGPP,WVDWPRVSKHULFUHVLGHQFHWLPHLV ± \HDUV,Q

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

ZHDUHDOUHDG\FRPPLWWHGWRDQRWKHUR&LQFUHDVHLQWHPSHUDWXUHHYHQLIWKHUHLV QRIXUWKHUDGGLWLRQRIFDUERQGLR[LGH

ZHDUHDOUHDG\FRPPLWWHGWRDQRWKHUR&LQFUHDVHLQWHPSHUDWXUHHYHQLIWKHUHLV QRIXUWKHUDGGLWLRQRIFDUERQGLR[LGH

 27+(5*5((1+286(*$6(6

 27+(5*5((1+286(*$6(6

(YHQWKRXJKFDUERQGLR[LGHDVDJUHHQKRXVHJDVKDVEHHQGLVFXVVHGLQGHWDLOWLOO QRZPHWKDQHQLWURXVR[LGHR]RQHFKORURIOXRURFDUERQV&)&V DQGVHYHUDORWKHU WUDFH JDVHV DOVR DEVRUE KHDW PRUH VWURQJO\ DQG ZDUP WKH DWPRVSKHUH ,Q IDFW VRPH RI WKHVH JDVHV WUDS KHDW PXFK PRUH HIILFLHQWO\ WKDQ FDUERQ GLR[LGH )RU H[DPSOH PHWKDQH DEVRUEV ±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

(YHQWKRXJKFDUERQGLR[LGHDVDJUHHQKRXVHJDVKDVEHHQGLVFXVVHGLQGHWDLOWLOO QRZPHWKDQHQLWURXVR[LGHR]RQHFKORURIOXRURFDUERQV&)&V DQGVHYHUDORWKHU WUDFH JDVHV DOVR DEVRUE KHDW PRUH VWURQJO\ DQG ZDUP WKH DWPRVSKHUH ,Q IDFW VRPH RI WKHVH JDVHV WUDS KHDW PXFK PRUH HIILFLHQWO\ WKDQ FDUERQ GLR[LGH )RU H[DPSOH PHWKDQH DEVRUEV ±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

7DEOH0HWKDQHLQWKHHQYLURQPHQW

7DEOH0HWKDQHLQWKHHQYLURQPHQW

1DWXUDO VRXUFHV

&RQWULEXWLRQ 07\U

$QWKURSRJHQLF VRXUFHV

&RQWULEXWLRQ 07\U

6LQNV 07\U

&RQWULEXWLRQ 07

1DWXUDO VRXUFHV

&RQWULEXWLRQ 07\U

$QWKURSRJHQLF VRXUFHV

&RQWULEXWLRQ 07\U

6LQNV 07\U

&RQWULEXWLRQ 07

:HWODQGV

±

/DQGILOO

±

2[LGDWLRQ

±

:HWODQGV

±

/DQGILOO

±

2[LGDWLRQ

±

7HUPLWHV

±

$JUL EXUQLQJ

±

6WUDWRVSKHULF

±

7HUPLWHV

±

$JUL EXUQLQJ

±

6WUDWRVSKHULF

±

2FHDQV

±

3DGG\ ILHOGV

±

'HFRPSRVLWLRQ

2FHDQV

±

3DGG\ ILHOGV

±

'HFRPSRVLWLRQ

5XPLQDQWV

±

9HQWLQJ OHDNV HWF

±

6RLO DEVRUSWLRQ

5XPLQDQWV

±

9HQWLQJ OHDNV HWF

±

6RLO DEVRUSWLRQ

7XQGUD

±

0LQLQJ

±

7XQGUD

±

0LQLQJ

±

9ROFDQRHV

±

6HZDJH

±

9ROFDQRHV

±

6HZDJH

±

±

&KORURIOXRURFDUERQVDUHDQRWKHULPSRUWDQWFODVVRIFRPSRXQGVLPSOLFDWHGLQ WKHJOREDOZDUPLQJSKHQRPHQRQ%RWKFKORULQHDQGIOXRULQHDUHQRWWKHQDWXUDO FRPSRQHQWVRIWKHHDUWK¶VDWPRVSKHUHDQGKHQFHLWLVORJLFDOWRDVVXPHWKDWWKHUH DUHQRVFDYHQJLQJPHFKDQLVPVIRUWKHUHPRYDORIWKHVHHOHPHQWVRUPROHFXOHV &RQVHTXHQWO\WKH\H[KLELWORQJDWPRVSKHULFOLIHWLPHV&)&VDEVRUEHOHFWURPDJQHWLF UDGLDWLRQVWURQJO\LQ±PPDQGKHQFHWKH\KDYHJUHDWSRWHQWLDOIRUJOREDOZDUPLQJ DVZHOODVVWUDWRVSKHULFR]RQHGHSOHWLRQ&)&KDVFKORULQHDQGH[KLELWV VWURQJDEVRUSWLRQEDQGVDWDQG—P,WVDWPRVSKHULFUHVLGHQFHWLPHLV ±\HDUV6LPLODUO\&)&KDVFKORULQHWKDWH[KLELWVDEVRUSWLRQEDQGV DWDQGPP,WVDWPRVSKHULFUHVLGHQFHWLPHLV ± \HDUV,Q

±

&KORURIOXRURFDUERQVDUHDQRWKHULPSRUWDQWFODVVRIFRPSRXQGVLPSOLFDWHGLQ WKHJOREDOZDUPLQJSKHQRPHQRQ%RWKFKORULQHDQGIOXRULQHDUHQRWWKHQDWXUDO FRPSRQHQWVRIWKHHDUWK¶VDWPRVSKHUHDQGKHQFHLWLVORJLFDOWRDVVXPHWKDWWKHUH DUHQRVFDYHQJLQJPHFKDQLVPVIRUWKHUHPRYDORIWKHVHHOHPHQWVRUPROHFXOHV &RQVHTXHQWO\WKH\H[KLELWORQJDWPRVSKHULFOLIHWLPHV&)&VDEVRUEHOHFWURPDJQHWLF UDGLDWLRQVWURQJO\LQ±PPDQGKHQFHWKH\KDYHJUHDWSRWHQWLDOIRUJOREDOZDUPLQJ DVZHOODVVWUDWRVSKHULFR]RQHGHSOHWLRQ&)&KDVFKORULQHDQGH[KLELWV VWURQJDEVRUSWLRQEDQGVDWDQG—P,WVDWPRVSKHULFUHVLGHQFHWLPHLV ±\HDUV6LPLODUO\&)&KDVFKORULQHWKDWH[KLELWVDEVRUSWLRQEDQGV DWDQGPP,WVDWPRVSKHULFUHVLGHQFHWLPHLV ± \HDUV,Q

*OREDO&OLPDWH&KDQJH 

*OREDO&OLPDWH&KDQJH 

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

7DEOH  &KDUDFWHULVWLFV RI JUHHQKRXVH JDVHV

7DEOH  &KDUDFWHULVWLFV RI JUHHQKRXVH JDVHV

$WPRVSKHULF FRQFHQWUDWLRQ 3UHLQGXVWULDO ± &XUUHQW &XUUHQW UDWH RI FKDQJH\HDU  LQFUHDVH\HDU $WPRVSKHULF OLIHWLPH \HDUV 3HUPROHFXOHUDWLRRIUDGLDWLYHIRUFLQJ >')*+* ')*+*&2 @ 0DMRUUHPRYDOPHFKDQLVP

&2

&+

12

&)&

+&)

SSPY a  \U  WR 

SSEY a  \U   

SSEY a  \U   

SSWY ]HUR  ±\U ±  

SSWY ]HUR     

,

,,

,,,

,,,

,,,

$WPRVSKHULF FRQFHQWUDWLRQ 3UHLQGXVWULDO ± &XUUHQW &XUUHQW UDWH RI FKDQJH\HDU  LQFUHDVH\HDU $WPRVSKHULF OLIHWLPH \HDUV 3HUPROHFXOHUDWLRRIUDGLDWLYHIRUFLQJ >')*+* ')*+*&2 @ 0DMRUUHPRYDOPHFKDQLVP

&2

&+

12

&)&

+&)

SSPY a  \U  WR 

SSEY a  \U   

SSEY a  \U   

SSWY ]HUR  ±\U ±  

SSWY ]HUR     

,

,,

,,,

,,,

,,,

, ± 6ORZ H[FKDQJH RI FDUERQ EHWZHHQ VXUIDFH ZDWHU DQG GHHSHU OD\HUV RI RFHDQ ,,±5HDFWLRQZLWKK\GUR[\OUDGLFDOLQWKHWURSRVSKHUH ,,,±3KRWRO\VLVLQVWUDWRSKHUH

, ± 6ORZ H[FKDQJH RI FDUERQ EHWZHHQ VXUIDFH ZDWHU DQG GHHSHU OD\HUV RI RFHDQ ,,±5HDFWLRQZLWKK\GUR[\OUDGLFDOLQWKHWURSRVSKHUH ,,,±3KRWRO\VLVLQVWUDWRSKHUH

7KH LQFUHDVH LQ WKH HTXLOLEULXP WHPSHUDWXUH E\ DOO WKH JUHHQKRXVH JDVHV LV JLYHQE\

7KH LQFUHDVH LQ WKH HTXLOLEULXP WHPSHUDWXUH E\ DOO WKH JUHHQKRXVH JDVHV LV JLYHQE\

ª &2  º     '7G OQ « »   ª¬ 12   12   º¼   ª¬ &+   &+   º¼ ¬ &2   ¼   >&)&  &)&    @   >&)&    &)&    @

'7



ª &2  º     '7G OQ « »   ª¬ 12   12   º¼   ª¬ &+   &+   º¼ ¬ &2   ¼   >&)&  &)&    @   >&)&    &)&    @

'7



ZKHUHDOOWKHFRQFHQWUDWLRQVDUHH[SUHVVHGLQSSE&RUUHVSRQGLQJFRQWULEXWLRQV WRZDUGVJOREDOZDUQLQJWRWKLVPRGHOLVVKRZQLQ)LJ

ZKHUHDOOWKHFRQFHQWUDWLRQVDUHH[SUHVVHGLQSSE&RUUHVSRQGLQJFRQWULEXWLRQV WRZDUGVJOREDOZDUQLQJWRWKLVPRGHOLVVKRZQLQ)LJ

*OREDO&OLPDWH&KDQJH 

*OREDO&OLPDWH&KDQJH 

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

7DEOH  &KDUDFWHULVWLFV RI JUHHQKRXVH JDVHV

7DEOH  &KDUDFWHULVWLFV RI JUHHQKRXVH JDVHV

$WPRVSKHULF FRQFHQWUDWLRQ 3UHLQGXVWULDO ± &XUUHQW &XUUHQW UDWH RI FKDQJH\HDU  LQFUHDVH\HDU $WPRVSKHULF OLIHWLPH \HDUV 3HUPROHFXOHUDWLRRIUDGLDWLYHIRUFLQJ >')*+* ')*+*&2 @ 0DMRUUHPRYDOPHFKDQLVP

&2

&+

12

&)&

+&)

SSPY a  \U  WR 

SSEY a  \U   

SSEY a  \U   

SSWY ]HUR  ±\U ±  

SSWY ]HUR     

,

,,

,,,

,,,

,,,

$WPRVSKHULF FRQFHQWUDWLRQ 3UHLQGXVWULDO ± &XUUHQW &XUUHQW UDWH RI FKDQJH\HDU  LQFUHDVH\HDU $WPRVSKHULF OLIHWLPH \HDUV 3HUPROHFXOHUDWLRRIUDGLDWLYHIRUFLQJ >')*+* ')*+*&2 @ 0DMRUUHPRYDOPHFKDQLVP

&2

&+

12

&)&

+&)

SSPY a  \U  WR 

SSEY a  \U   

SSEY a  \U   

SSWY ]HUR  ±\U ±  

SSWY ]HUR     

,

,,

,,,

,,,

,,,

, ± 6ORZ H[FKDQJH RI FDUERQ EHWZHHQ VXUIDFH ZDWHU DQG GHHSHU OD\HUV RI RFHDQ ,,±5HDFWLRQZLWKK\GUR[\OUDGLFDOLQWKHWURSRVSKHUH ,,,±3KRWRO\VLVLQVWUDWRSKHUH

, ± 6ORZ H[FKDQJH RI FDUERQ EHWZHHQ VXUIDFH ZDWHU DQG GHHSHU OD\HUV RI RFHDQ ,,±5HDFWLRQZLWKK\GUR[\OUDGLFDOLQWKHWURSRVSKHUH ,,,±3KRWRO\VLVLQVWUDWRSKHUH

7KH LQFUHDVH LQ WKH HTXLOLEULXP WHPSHUDWXUH E\ DOO WKH JUHHQKRXVH JDVHV LV JLYHQE\

7KH LQFUHDVH LQ WKH HTXLOLEULXP WHPSHUDWXUH E\ DOO WKH JUHHQKRXVH JDVHV LV JLYHQE\

ª &2  º     '7G OQ « »   ª¬ 12   12   º¼   ª¬ &+   &+   º¼ &2  ¼ ¬   >&)&  &)&    @   >&)&    &)&    @

'7



ZKHUHDOOWKHFRQFHQWUDWLRQVDUHH[SUHVVHGLQSSE&RUUHVSRQGLQJFRQWULEXWLRQV WRZDUGVJOREDOZDUQLQJWRWKLVPRGHOLVVKRZQLQ)LJ

ª &2  º     '7G OQ « »   ª¬ 12   12   º¼   ª¬ &+   &+   º¼ &2  ¼ ¬   >&)&  &)&    @   >&)&    &)&    @

'7



ZKHUHDOOWKHFRQFHQWUDWLRQVDUHH[SUHVVHGLQSSE&RUUHVSRQGLQJFRQWULEXWLRQV WRZDUGVJOREDOZDUQLQJWRWKLVPRGHOLVVKRZQLQ)LJ

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Relative % of gases contributing to global warming

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Relative % of gases contributing to global warming

Chlorofluorocarbons

Chlorofluorocarbons

20 Carbon dioxide

20 Carbon dioxide

50 18 6

50 18

Methane

8

6

Ozone

Methane

8 Ozone

Nitrous oxide

Nitrous oxide

)LJ5HODWLYHFRQWULEXWLRQRIRWKHUJDVHVWRJOREDOZDUPLQJ

)LJ5HODWLYHFRQWULEXWLRQRIRWKHUJDVHVWRJOREDOZDUPLQJ

)LJXUHVKRZVWKDWDSSUR[LPDWHO\WZRWKLUGVRIWKHR&LQFUHDVHLQJOREDO ZDUPLQJ LV GXH WR FDUERQ GLR[LGH 2WKHU JUHHQKRXVH JDV HIIHFWV KDYH EHFRPH PRUHSUHGRPLQDQWRQO\VLQFH7KHUHIRUHFRQWUROOLQJWKHIXWXUHJOREDOZDUPLQJ PDQGDWHVVWULFWFRQWURORI&)&V$JDLQDVPHQWLRQHGHDUOLHUGHYHORSHG:HVWHUQ FRXQWULHVSURGXFHDPDMRUSRUWLRQRIWKH&)&V+HQFHWKHRQXVLQUHGXFLQJJOREDO ZDUPLQJ UHVWV KHDYLO\ RQ DGYDQFHG FRXQWULHV LQFOXGLQJ -DSDQ DW OHDVW DV IDU DV &)&V DUH FRQFHUQHG

)LJXUHVKRZVWKDWDSSUR[LPDWHO\WZRWKLUGVRIWKHR&LQFUHDVHLQJOREDO ZDUPLQJ LV GXH WR FDUERQ GLR[LGH 2WKHU JUHHQKRXVH JDV HIIHFWV KDYH EHFRPH PRUHSUHGRPLQDQWRQO\VLQFH7KHUHIRUHFRQWUROOLQJWKHIXWXUHJOREDOZDUPLQJ PDQGDWHVVWULFWFRQWURORI&)&V$JDLQDVPHQWLRQHGHDUOLHUGHYHORSHG:HVWHUQ FRXQWULHVSURGXFHDPDMRUSRUWLRQRIWKH&)&V+HQFHWKHRQXVLQUHGXFLQJJOREDO ZDUPLQJ UHVWV KHDYLO\ RQ DGYDQFHG FRXQWULHV LQFOXGLQJ -DSDQ DW OHDVW DV IDU DV &)&V DUH FRQFHUQHG

 ,03/,&$7,216 2) */2%$/ :$50,1*

 ,03/,&$7,216 2) */2%$/ :$50,1*

$Q\ LQFUHDVH LQ WKH WURSRVSKHULF WHPSHUDWXUH VKRXOG FDXVH D UHGXFWLRQ LQ WKH VWUDWRVSKHUHDQGPHVRVSKHUH$FWXDOO\R&FRROLQJRIWKHVWUDWRVSKHUHKDVEHHQ REVHUYHGRYHUWKH\HDUV+RZHYHUWKLVFDQQRWEHVROHO\DVFULEHGWRJUHHQKRXVH HIIHFW VLQFH UHGXFWLRQ RI R]RQH E\ &)&V DQG RWKHU KDORJHQV LV D ZHOONQRZQ UHDFWLRQ$VRIQRZDQ\WHPSHUDWXUHFKDQJHVSRVVLEO\FDXVHGE\WKHJUHHQKRXVH JDVHVKDYHEHHQZLWKLQWKHQRUPDOVKRUWWHUPIOXFWXDWLRQVGXHWRFOLPDWLFFKDQJHV ,QIDFWPHDQJOREDOWHPSHUDWXUHQHYHUYDULHVPRUHWKDQ“R&/DVWWLPHDR& FKDQJHRFFXUUHGZDVDURXQG ±\HDUVDJR7KDWFDXVHGWKHPHOWLQJRI LFHVKHHWVDFURVVERWKKHPLVSKHUHVDQGHQGHGWKHODVWLFHDJH 7HPSHUDWXUHFKDQJHVRIPRUHWKDQR&RYHUDIHZGHFDGHVZRXOGEHGLVDVWURXV IRUWKHHDUWK¶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

$Q\ LQFUHDVH LQ WKH WURSRVSKHULF WHPSHUDWXUH VKRXOG FDXVH D UHGXFWLRQ LQ WKH VWUDWRVSKHUHDQGPHVRVSKHUH$FWXDOO\R&FRROLQJRIWKHVWUDWRVSKHUHKDVEHHQ REVHUYHGRYHUWKH\HDUV+RZHYHUWKLVFDQQRWEHVROHO\DVFULEHGWRJUHHQKRXVH HIIHFW VLQFH UHGXFWLRQ RI R]RQH E\ &)&V DQG RWKHU KDORJHQV LV D ZHOONQRZQ UHDFWLRQ$VRIQRZDQ\WHPSHUDWXUHFKDQJHVSRVVLEO\FDXVHGE\WKHJUHHQKRXVH JDVHVKDYHEHHQZLWKLQWKHQRUPDOVKRUWWHUPIOXFWXDWLRQVGXHWRFOLPDWLFFKDQJHV ,QIDFWPHDQJOREDOWHPSHUDWXUHQHYHUYDULHVPRUHWKDQ“R&/DVWWLPHDR& FKDQJHRFFXUUHGZDVDURXQG ±\HDUVDJR7KDWFDXVHGWKHPHOWLQJRI LFHVKHHWVDFURVVERWKKHPLVSKHUHVDQGHQGHGWKHODVWLFHDJH 7HPSHUDWXUHFKDQJHVRIPRUHWKDQR&RYHUDIHZGHFDGHVZRXOGEHGLVDVWURXV IRUWKHHDUWK¶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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Relative % of gases contributing to global warming

Relative % of gases contributing to global warming

Chlorofluorocarbons

Chlorofluorocarbons

20 Carbon dioxide

20 Carbon dioxide

50 18 6

50 18

Methane

8 Ozone

6

Methane

8 Ozone

Nitrous oxide

Nitrous oxide

)LJ5HODWLYHFRQWULEXWLRQRIRWKHUJDVHVWRJOREDOZDUPLQJ

)LJ5HODWLYHFRQWULEXWLRQRIRWKHUJDVHVWRJOREDOZDUPLQJ

)LJXUHVKRZVWKDWDSSUR[LPDWHO\WZRWKLUGVRIWKHR&LQFUHDVHLQJOREDO ZDUPLQJ LV GXH WR FDUERQ GLR[LGH 2WKHU JUHHQKRXVH JDV HIIHFWV KDYH EHFRPH PRUHSUHGRPLQDQWRQO\VLQFH7KHUHIRUHFRQWUROOLQJWKHIXWXUHJOREDOZDUPLQJ PDQGDWHVVWULFWFRQWURORI&)&V$JDLQDVPHQWLRQHGHDUOLHUGHYHORSHG:HVWHUQ FRXQWULHVSURGXFHDPDMRUSRUWLRQRIWKH&)&V+HQFHWKHRQXVLQUHGXFLQJJOREDO ZDUPLQJ UHVWV KHDYLO\ RQ DGYDQFHG FRXQWULHV LQFOXGLQJ -DSDQ DW OHDVW DV IDU DV &)&V DUH FRQFHUQHG

)LJXUHVKRZVWKDWDSSUR[LPDWHO\WZRWKLUGVRIWKHR&LQFUHDVHLQJOREDO ZDUPLQJ LV GXH WR FDUERQ GLR[LGH 2WKHU JUHHQKRXVH JDV HIIHFWV KDYH EHFRPH PRUHSUHGRPLQDQWRQO\VLQFH7KHUHIRUHFRQWUROOLQJWKHIXWXUHJOREDOZDUPLQJ PDQGDWHVVWULFWFRQWURORI&)&V$JDLQDVPHQWLRQHGHDUOLHUGHYHORSHG:HVWHUQ FRXQWULHVSURGXFHDPDMRUSRUWLRQRIWKH&)&V+HQFHWKHRQXVLQUHGXFLQJJOREDO ZDUPLQJ UHVWV KHDYLO\ RQ DGYDQFHG FRXQWULHV LQFOXGLQJ -DSDQ DW OHDVW DV IDU DV &)&V DUH FRQFHUQHG

 ,03/,&$7,216 2) */2%$/ :$50,1*

 ,03/,&$7,216 2) */2%$/ :$50,1*

$Q\ LQFUHDVH LQ WKH WURSRVSKHULF WHPSHUDWXUH VKRXOG FDXVH D UHGXFWLRQ LQ WKH VWUDWRVSKHUHDQGPHVRVSKHUH$FWXDOO\R&FRROLQJRIWKHVWUDWRVSKHUHKDVEHHQ REVHUYHGRYHUWKH\HDUV+RZHYHUWKLVFDQQRWEHVROHO\DVFULEHGWRJUHHQKRXVH HIIHFW VLQFH UHGXFWLRQ RI R]RQH E\ &)&V DQG RWKHU KDORJHQV LV D ZHOONQRZQ UHDFWLRQ$VRIQRZDQ\WHPSHUDWXUHFKDQJHVSRVVLEO\FDXVHGE\WKHJUHHQKRXVH JDVHVKDYHEHHQZLWKLQWKHQRUPDOVKRUWWHUPIOXFWXDWLRQVGXHWRFOLPDWLFFKDQJHV ,QIDFWPHDQJOREDOWHPSHUDWXUHQHYHUYDULHVPRUHWKDQ“R&/DVWWLPHDR& FKDQJHRFFXUUHGZDVDURXQG ±\HDUVDJR7KDWFDXVHGWKHPHOWLQJRI LFHVKHHWVDFURVVERWKKHPLVSKHUHVDQGHQGHGWKHODVWLFHDJH 7HPSHUDWXUHFKDQJHVRIPRUHWKDQR&RYHUDIHZGHFDGHVZRXOGEHGLVDVWURXV IRUWKHHDUWK¶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

$Q\ LQFUHDVH LQ WKH WURSRVSKHULF WHPSHUDWXUH VKRXOG FDXVH D UHGXFWLRQ LQ WKH VWUDWRVSKHUHDQGPHVRVSKHUH$FWXDOO\R&FRROLQJRIWKHVWUDWRVSKHUHKDVEHHQ REVHUYHGRYHUWKH\HDUV+RZHYHUWKLVFDQQRWEHVROHO\DVFULEHGWRJUHHQKRXVH HIIHFW VLQFH UHGXFWLRQ RI R]RQH E\ &)&V DQG RWKHU KDORJHQV LV D ZHOONQRZQ UHDFWLRQ$VRIQRZDQ\WHPSHUDWXUHFKDQJHVSRVVLEO\FDXVHGE\WKHJUHHQKRXVH JDVHVKDYHEHHQZLWKLQWKHQRUPDOVKRUWWHUPIOXFWXDWLRQVGXHWRFOLPDWLFFKDQJHV ,QIDFWPHDQJOREDOWHPSHUDWXUHQHYHUYDULHVPRUHWKDQ“R&/DVWWLPHDR& FKDQJHRFFXUUHGZDVDURXQG ±\HDUVDJR7KDWFDXVHGWKHPHOWLQJRI LFHVKHHWVDFURVVERWKKHPLVSKHUHVDQGHQGHGWKHODVWLFHDJH 7HPSHUDWXUHFKDQJHVRIPRUHWKDQR&RYHUDIHZGHFDGHVZRXOGEHGLVDVWURXV IRUWKHHDUWK¶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

*OREDO&OLPDWH&KDQJH 

OD\HUV (DFK FHOO LV D QRGH WKDW FDQ LQWHUDFW RQO\ ZLWK WKH DGMDFHQW QRGHV 7KH PRGHOXVHVDR&VFDOLQJIDFWRUIRUGRXEOLQJRI&2DQGQXPEHURIGD\VRQZKLFK WKH DYHUDJH WHPSHUDWXUH LQFUHDVHV DERYH WKH QRUPDO ! R)  DUH QRWHG 7KLV SURYLGHVDQLQGLFDWLRQRIWKHJOREDOZDUPLQJ$VRIQRZWKHVHPRGHOVDUHVWLOOLQ WKHHDUO\VWDJHVRIGHYHORSPHQWWKDWGRQRWWDNHLQWRDFFRXQWWKHRFHDQFXUUHQWV ORFDOFOLPDWLFFKDQJHVHWF)LJXUHVKRZVWKHH[SHFWHGFRQWULEXWLRQVRI RWKHU JUHHQKRXVHJDVHVRYHUWKHQH[W\HDUVXQOHVVUHPHGLDOPHDVXUHVDUHWDNHQXS

OD\HUV (DFK FHOO LV D QRGH WKDW FDQ LQWHUDFW RQO\ ZLWK WKH DGMDFHQW QRGHV 7KH PRGHOXVHVDR&VFDOLQJIDFWRUIRUGRXEOLQJRI&2DQGQXPEHURIGD\VRQZKLFK WKH DYHUDJH WHPSHUDWXUH LQFUHDVHV DERYH WKH QRUPDO ! R)  DUH QRWHG 7KLV SURYLGHVDQLQGLFDWLRQRIWKHJOREDOZDUPLQJ$VRIQRZWKHVHPRGHOVDUHVWLOOLQ WKHHDUO\VWDJHVRIGHYHORSPHQWWKDWGRQRWWDNHLQWRDFFRXQWWKHRFHDQFXUUHQWV ORFDOFOLPDWLFFKDQJHVHWF)LJXUHVKRZVWKHH[SHFWHGFRQWULEXWLRQVRI RWKHU JUHHQKRXVHJDVHVRYHUWKHQH[W\HDUVXQOHVVUHPHGLDOPHDVXUHVDUHWDNHQXS

5.0

5.0

4.5

4.5

Temperature increase (°C)

Temperature increase (°C)

*OREDO&OLPDWH&KDQJH 

4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 1985

4.0 3.5 3.0 2.5 2.0 1.5 1.0

1995

2005

2015

2025 Year

2035

2045

2055

2065

0.5 1985

2075

1995

2005

2015

2025 Year

2035

2045

2055

2065

2075

)LJ([SHFWHGFRQWULEXWLRQRIJUHHQKRXVHJDVHVWRJOREDOZDUPLQJ

7KHHIIHFWRQDJULFXOWXUHLVDOVRGLIILFXOWWRSUHGLFWDWWKLVVWDJH:LWKLQFUHDVLQJ FRQFHQWUDWLRQRI&2VRPHVWLPXODWLRQRISODQWJURZWKLVH[SHFWHG3UHFLSLWDWLRQ LV DOVR H[SHFWHG EXW D QRUWKZDUG VKLIW LQ WKH UDLQIDOO SDWWHUQ LV H[SHFWHG ZLWK LPSURYHG DJULFXOWXUDO \LHOGV LQ &DQDGD 6LEHULD DQG 6XE6DKDUDQ $IULFD 6LPXOWDQHRXVO\GHVHUWDUHDVRUGXVWERZOVZLOOLQFUHDVHE\ ±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

7KHHIIHFWRQDJULFXOWXUHLVDOVRGLIILFXOWWRSUHGLFWDWWKLVVWDJH:LWKLQFUHDVLQJ FRQFHQWUDWLRQRI&2VRPHVWLPXODWLRQRISODQWJURZWKLVH[SHFWHG3UHFLSLWDWLRQ LV DOVR H[SHFWHG EXW D QRUWKZDUG VKLIW LQ WKH UDLQIDOO SDWWHUQ LV H[SHFWHG ZLWK LPSURYHG DJULFXOWXUDO \LHOGV LQ &DQDGD 6LEHULD DQG 6XE6DKDUDQ $IULFD 6LPXOWDQHRXVO\GHVHUWDUHDVRUGXVWERZOVZLOOLQFUHDVHE\ ±NP/DNHV VWUHDPV DTXLIHUV ZDWHUHG HFRV\VWHPV DQG FURSODQGV ZRXOG VKULQN RU GU\ XS DOWRJHWKHU ,QFUHDVH RI R& ZRXOG UHGXFH VRLO PRLVWXUH WR VXFK DQ H[WHQW WKDW IRUHVWVLQWHPSHUDWHDQGVXEDUFWLFUHJLRQVZRXOGDOVRVKLIWWRZDUGWKHSROHVRUWR KLJKHU DOWLWXGHV *UDVVODQGV RU VKUXEODQGV PD\ UHSODFH WKH IRUHVW EHOWV ,I WKH IRUHVWPLJUDWLRQLVEORFNHGHQWLUHIRUHVWVRIRDNEHHFKDQGRWKHUWUHHVFRXOGGLH 7KHGHDGSODQWPDVVDJDLQZRXOGUHOHDVHPRUHFDUERQGLR[LGHLQWRWKHDWPRVSKHUH WKHUHE\DXJPHQWLQJWKHJUHHQKRXVHHIIHFW$QRWKHUSRVVLEOHVFHQDULRHQYLVDJHV PDVVLYHIRUHVWILUHVLQMHFWLQJKXJHDPRXQWVRIFDUERQGLR[LGHLQWRWKHDWPRVSKHUH )RRGSURGXFWLYLW\FRXOGLQFUHDVHLQVRPHDUHDVDQGGHFUHDVHLQVRPHRWKHU DUHDV,QFUHDVLQJWHPSHUDWXUHDQGGHFUHDVLQJUDLQIDOOFRXOGKDYHGHYDVWDWLQJLPSDFW RQZDWHUVXSSOLHV6WRFNWRQDQG%RJJHVV 5HYHOOHDQG:DJQHUVWXGLHGWKHHIIHFW RIR&ZDUPLQJDQGUHGXFWLRQLQSUHFLSLWDWLRQDQGFRQFOXGHGWKDWDYHUDJH VXUIDFH ZDWHU VXSSO\ ZRXOG GHFOLQH E\ DERXW  5LYHUV GHSHQGHQW RQ VQRZ PHOWZRXOGH[SHULHQFHZLQWHUIORRGVDQGUHGXFHGVXPPHUUXQRII

*OREDO&OLPDWH&KDQJH 

*OREDO&OLPDWH&KDQJH 

OD\HUV (DFK FHOO LV D QRGH WKDW FDQ LQWHUDFW RQO\ ZLWK WKH DGMDFHQW QRGHV 7KH PRGHOXVHVDR&VFDOLQJIDFWRUIRUGRXEOLQJRI&2DQGQXPEHURIGD\VRQZKLFK WKH DYHUDJH WHPSHUDWXUH LQFUHDVHV DERYH WKH QRUPDO ! R)  DUH QRWHG 7KLV SURYLGHVDQLQGLFDWLRQRIWKHJOREDOZDUPLQJ$VRIQRZWKHVHPRGHOVDUHVWLOOLQ WKHHDUO\VWDJHVRIGHYHORSPHQWWKDWGRQRWWDNHLQWRDFFRXQWWKHRFHDQFXUUHQWV ORFDOFOLPDWLFFKDQJHVHWF)LJXUHVKRZVWKHH[SHFWHGFRQWULEXWLRQVRI RWKHU JUHHQKRXVHJDVHVRYHUWKHQH[W\HDUVXQOHVVUHPHGLDOPHDVXUHVDUHWDNHQXS

OD\HUV (DFK FHOO LV D QRGH WKDW FDQ LQWHUDFW RQO\ ZLWK WKH DGMDFHQW QRGHV 7KH PRGHOXVHVDR&VFDOLQJIDFWRUIRUGRXEOLQJRI&2DQGQXPEHURIGD\VRQZKLFK WKH DYHUDJH WHPSHUDWXUH LQFUHDVHV DERYH WKH QRUPDO ! R)  DUH QRWHG 7KLV SURYLGHVDQLQGLFDWLRQRIWKHJOREDOZDUPLQJ$VRIQRZWKHVHPRGHOVDUHVWLOOLQ WKHHDUO\VWDJHVRIGHYHORSPHQWWKDWGRQRWWDNHLQWRDFFRXQWWKHRFHDQFXUUHQWV ORFDOFOLPDWLFFKDQJHVHWF)LJXUHVKRZVWKHH[SHFWHGFRQWULEXWLRQVRI RWKHU JUHHQKRXVHJDVHVRYHUWKHQH[W\HDUVXQOHVVUHPHGLDOPHDVXUHVDUHWDNHQXS

5.0

5.0

4.5

4.5

Temperature increase (°C)

Temperature increase (°C)

)LJ([SHFWHGFRQWULEXWLRQRIJUHHQKRXVHJDVHVWRJOREDOZDUPLQJ

4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 1985

4.0 3.5 3.0 2.5 2.0 1.5 1.0

1995

2005

2015

2025 Year

2035

2045

2055

2065

2075

0.5 1985

1995

2005

2015

2025 Year

2035

2045

2055

2065

2075

)LJ([SHFWHGFRQWULEXWLRQRIJUHHQKRXVHJDVHVWRJOREDOZDUPLQJ

)LJ([SHFWHGFRQWULEXWLRQRIJUHHQKRXVHJDVHVWRJOREDOZDUPLQJ

7KHHIIHFWRQDJULFXOWXUHLVDOVRGLIILFXOWWRSUHGLFWDWWKLVVWDJH:LWKLQFUHDVLQJ FRQFHQWUDWLRQRI&2VRPHVWLPXODWLRQRISODQWJURZWKLVH[SHFWHG3UHFLSLWDWLRQ LV DOVR H[SHFWHG EXW D QRUWKZDUG VKLIW LQ WKH UDLQIDOO SDWWHUQ LV H[SHFWHG ZLWK LPSURYHG DJULFXOWXUDO \LHOGV LQ &DQDGD 6LEHULD DQG 6XE6DKDUDQ $IULFD 6LPXOWDQHRXVO\GHVHUWDUHDVRUGXVWERZOVZLOOLQFUHDVHE\ ±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

7KHHIIHFWRQDJULFXOWXUHLVDOVRGLIILFXOWWRSUHGLFWDWWKLVVWDJH:LWKLQFUHDVLQJ FRQFHQWUDWLRQRI&2VRPHVWLPXODWLRQRISODQWJURZWKLVH[SHFWHG3UHFLSLWDWLRQ LV DOVR H[SHFWHG EXW D QRUWKZDUG VKLIW LQ WKH UDLQIDOO SDWWHUQ LV H[SHFWHG ZLWK LPSURYHG DJULFXOWXUDO \LHOGV LQ &DQDGD 6LEHULD DQG 6XE6DKDUDQ $IULFD 6LPXOWDQHRXVO\GHVHUWDUHDVRUGXVWERZOVZLOOLQFUHDVHE\ ±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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

)RUHVWPLJUDWLRQDQGRUGHVWUXFWLRQZRXOGFDXVHH[WLQFWLRQRISODQWDQGDQLPDO VSHFLHVWKDWFDQQRWPLJUDWHWRQHZDUHDV/RZHUZDWHUOHYHOVLQULYHUVDQGODNHV ZRXOGLQFUHDVHWKHSHVWLFLGHFRQFHQWUDWLRQVOHDGLQJWRODUJHVFDOHILVKNLOOV/RVV RIELRGLYHUVLW\IURPSDUNVZLOGOLIHUHVHUYHVZLOGHUQHVVDUHDVZHWODQGVDQGFRUDO UHHIVZRXOGEHVXEVWDQWLDO :DUPHUWHPSHUDWXUHVDQGSURORQJHGKHDWZDYHVZRXOGFDXVHKXUULFDQHVDQG W\SKRRQV ZRXOG EORZ PRUH ILHUFHO\ $V WKH VQRZ PHOWV WKH UDWH RI VHD OHYHO LQFUHDVHZRXOGDFFHOHUDWH7KHFXUUHQWUDWHRIVHDOHYHOLQFUHDVHLV ±FPSHU KXQGUHG\HDUV7ZRWKLUGVRIWKLVHIIHFWLVDWWULEXWHGWRJOREDOZDUPLQJDQGRQH WKLUG FRXOG EH GXH WR GHIRUHVWDWLRQ GUDLQLQJ RI ZHWODQGV DQG H[SORLWDWLRQ RI XQGHUJURXQGZDWHU%\WKHVHDOHYHOLVH[SHFWHGWRULVHE\DQRWKHU ±FP DQG ±FPE\'LVLQWHJUDWLRQRI:HVW$QWDUFWLFLFHVKHHWPLJKWUDLVH WKHVHDOHYHOE\DQDGGLWLRQDOPHWUHVRYHUWKHQH[WIHZFHQWXULHV$PHWHUULVH FRXOGSHUPDQHQWO\LQXQGDWHODUJHWUDFWVRIZDVWHODQGVWKUHDWHQLQJILVKHULHVODQG HURVLRQLQFUHDVLQJVDOLQLW\RIWKHFRDVWDOHVWXDULHVDQGFRDVWDODTXLIHUV *OREDOFOLPDWLFPRGHOVSUHGLFWDZHWWHU,QGLDZLWKKHDY\UDLQIDOODQGPRUH ODQGVOLGHVLQWKH+LPDOD\DV$ERXWRQHWKLUGRIWKHZRUOG¶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

)RUHVWPLJUDWLRQDQGRUGHVWUXFWLRQZRXOGFDXVHH[WLQFWLRQRISODQWDQGDQLPDO VSHFLHVWKDWFDQQRWPLJUDWHWRQHZDUHDV/RZHUZDWHUOHYHOVLQULYHUVDQGODNHV ZRXOGLQFUHDVHWKHSHVWLFLGHFRQFHQWUDWLRQVOHDGLQJWRODUJHVFDOHILVKNLOOV/RVV RIELRGLYHUVLW\IURPSDUNVZLOGOLIHUHVHUYHVZLOGHUQHVVDUHDVZHWODQGVDQGFRUDO UHHIVZRXOGEHVXEVWDQWLDO :DUPHUWHPSHUDWXUHVDQGSURORQJHGKHDWZDYHVZRXOGFDXVHKXUULFDQHVDQG W\SKRRQV ZRXOG EORZ PRUH ILHUFHO\ $V WKH VQRZ PHOWV WKH UDWH RI VHD OHYHO LQFUHDVHZRXOGDFFHOHUDWH7KHFXUUHQWUDWHRIVHDOHYHOLQFUHDVHLV ±FPSHU KXQGUHG\HDUV7ZRWKLUGVRIWKLVHIIHFWLVDWWULEXWHGWRJOREDOZDUPLQJDQGRQH WKLUG FRXOG EH GXH WR GHIRUHVWDWLRQ GUDLQLQJ RI ZHWODQGV DQG H[SORLWDWLRQ RI XQGHUJURXQGZDWHU%\WKHVHDOHYHOLVH[SHFWHGWRULVHE\DQRWKHU ±FP DQG ±FPE\'LVLQWHJUDWLRQRI:HVW$QWDUFWLFLFHVKHHWPLJKWUDLVH WKHVHDOHYHOE\DQDGGLWLRQDOPHWUHVRYHUWKHQH[WIHZFHQWXULHV$PHWHUULVH FRXOGSHUPDQHQWO\LQXQGDWHODUJHWUDFWVRIZDVWHODQGVWKUHDWHQLQJILVKHULHVODQG HURVLRQLQFUHDVLQJVDOLQLW\RIWKHFRDVWDOHVWXDULHVDQGFRDVWDODTXLIHUV *OREDOFOLPDWLFPRGHOVSUHGLFWDZHWWHU,QGLDZLWKKHDY\UDLQIDOODQGPRUH ODQGVOLGHVLQWKH+LPDOD\DV$ERXWRQHWKLUGRIWKHZRUOG¶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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

)RUHVWPLJUDWLRQDQGRUGHVWUXFWLRQZRXOGFDXVHH[WLQFWLRQRISODQWDQGDQLPDO VSHFLHVWKDWFDQQRWPLJUDWHWRQHZDUHDV/RZHUZDWHUOHYHOVLQULYHUVDQGODNHV ZRXOGLQFUHDVHWKHSHVWLFLGHFRQFHQWUDWLRQVOHDGLQJWRODUJHVFDOHILVKNLOOV/RVV RIELRGLYHUVLW\IURPSDUNVZLOGOLIHUHVHUYHVZLOGHUQHVVDUHDVZHWODQGVDQGFRUDO UHHIVZRXOGEHVXEVWDQWLDO :DUPHUWHPSHUDWXUHVDQGSURORQJHGKHDWZDYHVZRXOGFDXVHKXUULFDQHVDQG W\SKRRQV ZRXOG EORZ PRUH ILHUFHO\ $V WKH VQRZ PHOWV WKH UDWH RI VHD OHYHO LQFUHDVHZRXOGDFFHOHUDWH7KHFXUUHQWUDWHRIVHDOHYHOLQFUHDVHLV ±FPSHU KXQGUHG\HDUV7ZRWKLUGVRIWKLVHIIHFWLVDWWULEXWHGWRJOREDOZDUPLQJDQGRQH WKLUG FRXOG EH GXH WR GHIRUHVWDWLRQ GUDLQLQJ RI ZHWODQGV DQG H[SORLWDWLRQ RI XQGHUJURXQGZDWHU%\WKHVHDOHYHOLVH[SHFWHGWRULVHE\DQRWKHU ±FP DQG ±FPE\'LVLQWHJUDWLRQRI:HVW$QWDUFWLFLFHVKHHWPLJKWUDLVH WKHVHDOHYHOE\DQDGGLWLRQDOPHWUHVRYHUWKHQH[WIHZFHQWXULHV$PHWHUULVH FRXOGSHUPDQHQWO\LQXQGDWHODUJHWUDFWVRIZDVWHODQGVWKUHDWHQLQJILVKHULHVODQG HURVLRQLQFUHDVLQJVDOLQLW\RIWKHFRDVWDOHVWXDULHVDQGFRDVWDODTXLIHUV *OREDOFOLPDWLFPRGHOVSUHGLFWDZHWWHU,QGLDZLWKKHDY\UDLQIDOODQGPRUH ODQGVOLGHVLQWKH+LPDOD\DV$ERXWRQHWKLUGRIWKHZRUOG¶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

)RUHVWPLJUDWLRQDQGRUGHVWUXFWLRQZRXOGFDXVHH[WLQFWLRQRISODQWDQGDQLPDO VSHFLHVWKDWFDQQRWPLJUDWHWRQHZDUHDV/RZHUZDWHUOHYHOVLQULYHUVDQGODNHV ZRXOGLQFUHDVHWKHSHVWLFLGHFRQFHQWUDWLRQVOHDGLQJWRODUJHVFDOHILVKNLOOV/RVV RIELRGLYHUVLW\IURPSDUNVZLOGOLIHUHVHUYHVZLOGHUQHVVDUHDVZHWODQGVDQGFRUDO UHHIVZRXOGEHVXEVWDQWLDO :DUPHUWHPSHUDWXUHVDQGSURORQJHGKHDWZDYHVZRXOGFDXVHKXUULFDQHVDQG W\SKRRQV ZRXOG EORZ PRUH ILHUFHO\ $V WKH VQRZ PHOWV WKH UDWH RI VHD OHYHO LQFUHDVHZRXOGDFFHOHUDWH7KHFXUUHQWUDWHRIVHDOHYHOLQFUHDVHLV ±FPSHU KXQGUHG\HDUV7ZRWKLUGVRIWKLVHIIHFWLVDWWULEXWHGWRJOREDOZDUPLQJDQGRQH WKLUG FRXOG EH GXH WR GHIRUHVWDWLRQ GUDLQLQJ RI ZHWODQGV DQG H[SORLWDWLRQ RI XQGHUJURXQGZDWHU%\WKHVHDOHYHOLVH[SHFWHGWRULVHE\DQRWKHU ±FP DQG ±FPE\'LVLQWHJUDWLRQRI:HVW$QWDUFWLFLFHVKHHWPLJKWUDLVH WKHVHDOHYHOE\DQDGGLWLRQDOPHWUHVRYHUWKHQH[WIHZFHQWXULHV$PHWHUULVH FRXOGSHUPDQHQWO\LQXQGDWHODUJHWUDFWVRIZDVWHODQGVWKUHDWHQLQJILVKHULHVODQG HURVLRQLQFUHDVLQJVDOLQLW\RIWKHFRDVWDOHVWXDULHVDQGFRDVWDODTXLIHUV *OREDOFOLPDWLFPRGHOVSUHGLFWDZHWWHU,QGLDZLWKKHDY\UDLQIDOODQGPRUH ODQGVOLGHVLQWKH+LPDOD\DV$ERXWRQHWKLUGRIWKHZRUOG¶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

*OREDO&OLPDWH&KDQJH 

*OREDO&OLPDWH&KDQJH 

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

7DEOH&KDUDFWHULVWLFVRIVRODUUDGLDWLRQIDOOLQJRQWKHHDUWK

7DEOH&KDUDFWHULVWLFVRIVRODUUDGLDWLRQIDOOLQJRQWKHHDUWK

:DYHOHQJWK

7\SH

5HPDUNV

:DYHOHQJWK

7\SH

5HPDUNV

!—P

/RQJ ZDYH LQIUDUHG

0ROHFXOHVOLNH&2DQG&)&VLQWKHDWPRVSKHUHDEVRUE LQIUDUHG ,5  UDGLDWLRQ EHWZHHQ  DQG  —P UHIOHFWHG EDFNIURPWKHHDUWK

!—P

/RQJ ZDYH LQIUDUHG

0ROHFXOHVOLNH&2DQG&)&VLQWKHDWPRVSKHUHDEVRUE LQIUDUHG ,5  UDGLDWLRQ EHWZHHQ  DQG  —P UHIOHFWHG EDFNIURPWKHHDUWK

QP±—P 6KRUWZDYH LQIUDUHG

—PLVWKHXSSHUOLPLWIRU,5UDGLDWLRQWRSHQHWUDWHWKH HDUWK¶VVXUIDFHIURPWKHVXQ7KLV,5KHDWVXSWKHVXUIDFHV RQWKHSODQHWDQGDOVRSHUPLWVUHIOHFWLRQRI,5RI—P EDFNLQWRVSDFH

QP±—P 6KRUWZDYH LQIUDUHG

—PLVWKHXSSHUOLPLWIRU,5UDGLDWLRQWRSHQHWUDWHWKH HDUWK¶VVXUIDFHIURPWKHVXQ7KLV,5KHDWVXSWKHVXUIDFHV RQWKHSODQHWDQGDOVRSHUPLWVUHIOHFWLRQRI,5RI—P EDFNLQWRVSDFH

±QP

9LVLEOH VSHFWUXP

%OXH  QP  DQG UHG  QP  FRPSRQHQWV DUH PRVW LPSRUWDQWIRUSKRWRV\QWKHVLVZKLOHYLVLRQLVPRVWVHQVLWLYH LQJUHHQ\HOORZQP OLJKW

±QP

9LVLEOH VSHFWUXP

%OXH  QP  DQG UHG  QP  FRPSRQHQWV DUH PRVW LPSRUWDQWIRUSKRWRV\QWKHVLVZKLOHYLVLRQLVPRVWVHQVLWLYH LQJUHHQ\HOORZQP OLJKW

±QP

89$

/RQJZDYHXOWUDYLROHWQRWQRUPDOO\DVVRFLDWHGZLWKLQMXU\ WR ELRORJLFDO V\VWHPV &HUWDLQ SKRWRUHFHSWRUV RI DQLPDOV DQGSODQWVRSHUDWHLQWKLVUHJLRQ

±QP

89$

/RQJZDYHXOWUDYLROHWQRWQRUPDOO\DVVRFLDWHGZLWKLQMXU\ WR ELRORJLFDO V\VWHPV &HUWDLQ SKRWRUHFHSWRUV RI DQLPDOV DQGSODQWVRSHUDWHLQWKLVUHJLRQ

±QP

89%

7KH ZDYHOHQJWKV RI VXQOLJKW OLNHO\ WR FDXVH ELRORJLFDO HIIHFWV 7KHUH LV VRPH GLVSXWH RYHU WKH XSSHU OLPLW  QPLVLQWKH81(35HSRUW 2WKHUVTXRWHQP

±QP

89%

7KH ZDYHOHQJWKV RI VXQOLJKW OLNHO\ WR FDXVH ELRORJLFDO HIIHFWV 7KHUH LV VRPH GLVSXWH RYHU WKH XSSHU OLPLW  QPLVLQWKH81(35HSRUW 2WKHUVTXRWHQP

QP

89&

7KHVH ZDYHOHQJWKV DUH FRPSOHWHO\ DEVRUEHG E\ WKH DWPRVSKHUH EHIRUH VXQOLJKW UHDFKHV WKH VXUIDFH RI WKH HDUWK7KH\DUHPRUHGLVUXSWLYHWRELRORJLFDOV\VWHPVWKDQ 89%DQGDUHFRPPRQO\XVHGIRUVWHULOL]DWLRQSURFHGXUHV

QP

89&

7KHVH ZDYHOHQJWKV DUH FRPSOHWHO\ DEVRUEHG E\ WKH DWPRVSKHUH EHIRUH VXQOLJKW UHDFKHV WKH VXUIDFH RI WKH HDUWK7KH\DUHPRUHGLVUXSWLYHWRELRORJLFDOV\VWHPVWKDQ 89%DQGDUHFRPPRQO\XVHGIRUVWHULOL]DWLRQSURFHGXUHV

(YHQ WKRXJK WKH R]RQH FRQFHQWUDWLRQ LQFUHDVHV LQ WKH DWPRVSKHUH GXH WR DWPRVSKHULF UHDFWLRQV DQG VRODU DFWLYLW\ LW FDQQRW LQFUHDVH FRQWLQXRXVO\ XQLQWHUUXSWHG 3KRWRGLVVRFLDWLRQ RI R]RQH EDFN LQWR 2 DWRP DQG 2 PROHFXOH SUHGRPLQDWHVZKHQHYHUWKHR]RQHFRQFHQWUDWLRQLQFUHDVHVDERYHDFULWLFDOOLPLW 7KLVUHDFWLRQLVUHSUHVHQWHGDV !  QPo 2 2  KY 

 3  2 D' 





J

RU E 'J



(YHQ WKRXJK WKH R]RQH FRQFHQWUDWLRQ LQFUHDVHV LQ WKH DWPRVSKHUH GXH WR DWPRVSKHULF UHDFWLRQV DQG VRODU DFWLYLW\ LW FDQQRW LQFUHDVH FRQWLQXRXVO\ XQLQWHUUXSWHG 3KRWRGLVVRFLDWLRQ RI R]RQH EDFN LQWR 2 DWRP DQG 2 PROHFXOH SUHGRPLQDWHVZKHQHYHUWKHR]RQHFRQFHQWUDWLRQLQFUHDVHVDERYHDFULWLFDOOLPLW 7KLVUHDFWLRQLVUHSUHVHQWHGDV !  QPo 2 2  KY 



 3  2 D' 





J

RU E 'J





 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

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

7DEOH&KDUDFWHULVWLFVRIVRODUUDGLDWLRQIDOOLQJRQWKHHDUWK

7DEOH&KDUDFWHULVWLFVRIVRODUUDGLDWLRQIDOOLQJRQWKHHDUWK

:DYHOHQJWK

7\SH

5HPDUNV

:DYHOHQJWK

7\SH

5HPDUNV

!—P

/RQJ ZDYH LQIUDUHG

0ROHFXOHVOLNH&2DQG&)&VLQWKHDWPRVSKHUHDEVRUE LQIUDUHG ,5  UDGLDWLRQ EHWZHHQ  DQG  —P UHIOHFWHG EDFNIURPWKHHDUWK

!—P

/RQJ ZDYH LQIUDUHG

0ROHFXOHVOLNH&2DQG&)&VLQWKHDWPRVSKHUHDEVRUE LQIUDUHG ,5  UDGLDWLRQ EHWZHHQ  DQG  —P UHIOHFWHG EDFNIURPWKHHDUWK

QP±—P 6KRUWZDYH LQIUDUHG

—PLVWKHXSSHUOLPLWIRU,5UDGLDWLRQWRSHQHWUDWHWKH HDUWK¶VVXUIDFHIURPWKHVXQ7KLV,5KHDWVXSWKHVXUIDFHV RQWKHSODQHWDQGDOVRSHUPLWVUHIOHFWLRQRI,5RI—P EDFNLQWRVSDFH

QP±—P 6KRUWZDYH LQIUDUHG

—PLVWKHXSSHUOLPLWIRU,5UDGLDWLRQWRSHQHWUDWHWKH HDUWK¶VVXUIDFHIURPWKHVXQ7KLV,5KHDWVXSWKHVXUIDFHV RQWKHSODQHWDQGDOVRSHUPLWVUHIOHFWLRQRI,5RI—P EDFNLQWRVSDFH

±QP

9LVLEOH VSHFWUXP

%OXH  QP  DQG UHG  QP  FRPSRQHQWV DUH PRVW LPSRUWDQWIRUSKRWRV\QWKHVLVZKLOHYLVLRQLVPRVWVHQVLWLYH LQJUHHQ\HOORZQP OLJKW

±QP

9LVLEOH VSHFWUXP

%OXH  QP  DQG UHG  QP  FRPSRQHQWV DUH PRVW LPSRUWDQWIRUSKRWRV\QWKHVLVZKLOHYLVLRQLVPRVWVHQVLWLYH LQJUHHQ\HOORZQP OLJKW

±QP

89$

/RQJZDYHXOWUDYLROHWQRWQRUPDOO\DVVRFLDWHGZLWKLQMXU\ WR ELRORJLFDO V\VWHPV &HUWDLQ SKRWRUHFHSWRUV RI DQLPDOV DQGSODQWVRSHUDWHLQWKLVUHJLRQ

±QP

89$

/RQJZDYHXOWUDYLROHWQRWQRUPDOO\DVVRFLDWHGZLWKLQMXU\ WR ELRORJLFDO V\VWHPV &HUWDLQ SKRWRUHFHSWRUV RI DQLPDOV DQGSODQWVRSHUDWHLQWKLVUHJLRQ

±QP

89%

7KH ZDYHOHQJWKV RI VXQOLJKW OLNHO\ WR FDXVH ELRORJLFDO HIIHFWV 7KHUH LV VRPH GLVSXWH RYHU WKH XSSHU OLPLW  QPLVLQWKH81(35HSRUW 2WKHUVTXRWHQP

±QP

89%

7KH ZDYHOHQJWKV RI VXQOLJKW OLNHO\ WR FDXVH ELRORJLFDO HIIHFWV 7KHUH LV VRPH GLVSXWH RYHU WKH XSSHU OLPLW  QPLVLQWKH81(35HSRUW 2WKHUVTXRWHQP

QP

89&

7KHVH ZDYHOHQJWKV DUH FRPSOHWHO\ DEVRUEHG E\ WKH DWPRVSKHUH EHIRUH VXQOLJKW UHDFKHV WKH VXUIDFH RI WKH HDUWK7KH\DUHPRUHGLVUXSWLYHWRELRORJLFDOV\VWHPVWKDQ 89%DQGDUHFRPPRQO\XVHGIRUVWHULOL]DWLRQSURFHGXUHV

QP

89&

7KHVH ZDYHOHQJWKV DUH FRPSOHWHO\ DEVRUEHG E\ WKH DWPRVSKHUH EHIRUH VXQOLJKW UHDFKHV WKH VXUIDFH RI WKH HDUWK7KH\DUHPRUHGLVUXSWLYHWRELRORJLFDOV\VWHPVWKDQ 89%DQGDUHFRPPRQO\XVHGIRUVWHULOL]DWLRQSURFHGXUHV

(YHQ WKRXJK WKH R]RQH FRQFHQWUDWLRQ LQFUHDVHV LQ WKH DWPRVSKHUH GXH WR DWPRVSKHULF UHDFWLRQV DQG VRODU DFWLYLW\ LW FDQQRW LQFUHDVH FRQWLQXRXVO\ XQLQWHUUXSWHG 3KRWRGLVVRFLDWLRQ RI R]RQH EDFN LQWR 2 DWRP DQG 2 PROHFXOH SUHGRPLQDWHVZKHQHYHUWKHR]RQHFRQFHQWUDWLRQLQFUHDVHVDERYHDFULWLFDOOLPLW 7KLVUHDFWLRQLVUHSUHVHQWHGDV !  QPo 2 2  KY 

 3  2 D' 





J

RU E 'J





(YHQ WKRXJK WKH R]RQH FRQFHQWUDWLRQ LQFUHDVHV LQ WKH DWPRVSKHUH GXH WR DWPRVSKHULF UHDFWLRQV DQG VRODU DFWLYLW\ LW FDQQRW LQFUHDVH FRQWLQXRXVO\ XQLQWHUUXSWHG 3KRWRGLVVRFLDWLRQ RI R]RQH EDFN LQWR 2 DWRP DQG 2 PROHFXOH SUHGRPLQDWHVZKHQHYHUWKHR]RQHFRQFHQWUDWLRQLQFUHDVHVDERYHDFULWLFDOOLPLW 7KLVUHDFWLRQLVUHSUHVHQWHGDV !  QPo 2 2  KY 

 3  2 D' 





J

RU E 'J





2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

7KH QRWDWLRQV LQ WKH DERYH UHDFWLRQ DUH VSHFWURVFRSLF WHUPV ZKLFK VLJQLI\ WKDWDOOWKHUHDFWLRQSURGXFWVDUHQRWH[DFWO\HTXLYDOHQWLQWHUPVRIWKHLUHQHUJ\ FRQWHQW

7KH QRWDWLRQV LQ WKH DERYH UHDFWLRQ DUH VSHFWURVFRSLF WHUPV ZKLFK VLJQLI\ WKDWDOOWKHUHDFWLRQSURGXFWVDUHQRWH[DFWO\HTXLYDOHQWLQWHUPVRIWKHLUHQHUJ\ FRQWHQW

§ · 2  2 o 2   2  ¨ u  6J  ¸ ¨ ¸ © ¹

§ · 2  2 o 2   2  ¨ u  6J  ¸ ¨ ¸ © ¹



,QVXPPDU\R]RQHLVFRQVWDQWO\V\QWKHVL]HGE\WKHSKRWRO\VLVRIVRODUUDGLDWLRQLQ WKH HDUWK¶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

Q >7.  Q P 7 .  @ 





,QVXPPDU\R]RQHLVFRQVWDQWO\V\QWKHVL]HGE\WKHSKRWRO\VLVRIVRODUUDGLDWLRQLQ WKH HDUWK¶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

Q >7.  Q P 7 .  @ 



ZKHUHQQQDUHWKHFRQFHQWUDWLRQVRI22DQG2QPLVWKHFRQFHQWUDWLRQ RIDOORWKHUPROHFXOHV7DQG7DUHWKHSKRWRO\WLFUDWHVIRUHTXDWLRQVDQG DQG.DQG.DUHWKHUHDFWLRQUDWHVRIHTXDWLRQVDQG 8QWLO D IHZ \HDUV DJR WKH R]RQH IRUPDWLRQ DQG GHSOHWLRQ UHDFWLRQV ZHUH SURFHHGLQJDWVLPLODUUDWHVZLWKDVOLJKWELDVWRZDUGVIRUPDWLRQRIR]RQH7KHUHIRUH WKHUHZDVDQHWFRQFHQWUDWLRQRIR]RQHPROHFXOHVLQWKHVWUDWRVSKHUH7KHR]RQH FRQFHQWUDWLRQVVKRZDYDULDWLRQRIIURP\HDUWR\HDUDQGORFDOYDULDWLRQRI ±WLPHVLVFRQVLGHUHGDVTXLWHQRUPDO 7KHHIIHFWLYHQHVVRIWKHUHDFWLRQVLQUHPRYLQJWKHVKRUW89UDGLDWLRQLVVKRZQ LQ)LJLQZKLFKWKHH[WUDWHUUHVWULDOVRODUIOX[DQGWKHDFWXDOIOX[UHDFKLQJWKH HDUWK¶V VXUIDFH LV VKRZQ 7KHUDGLDWLRQEHORZQPGRHVQRWUHDFKWKHHDUWK¶VVXUIDFHDWDOO89$ ZDYHEDQGH[WHQGLQJIURP ± LVQRWFDUFLQRJHQLFDWWKHFXUUHQWH[SRVXUH OHYHOV%LRORJLFDORUJDQLVPVDUHPRVWVHQVLWLYHWR89%UDGLDWLRQFRUUHVSRQGLQJWR ±QP7KH\DUHUHVSRQVLEOHIRUVXQEXUQVDQGVNLQFDQFHU7KHUHIRUHR]RQH SOD\VDFUXFLDOUROHLQUHGXFLQJWKH89%UDGLDWLRQUHDFKLQJWKHHDUWK

ZKHUHQQQDUHWKHFRQFHQWUDWLRQVRI22DQG2QPLVWKHFRQFHQWUDWLRQ RIDOORWKHUPROHFXOHV7DQG7DUHWKHSKRWRO\WLFUDWHVIRUHTXDWLRQVDQG DQG.DQG.DUHWKHUHDFWLRQUDWHVRIHTXDWLRQVDQG 8QWLO D IHZ \HDUV DJR WKH R]RQH IRUPDWLRQ DQG GHSOHWLRQ UHDFWLRQV ZHUH SURFHHGLQJDWVLPLODUUDWHVZLWKDVOLJKWELDVWRZDUGVIRUPDWLRQRIR]RQH7KHUHIRUH WKHUHZDVDQHWFRQFHQWUDWLRQRIR]RQHPROHFXOHVLQWKHVWUDWRVSKHUH7KHR]RQH FRQFHQWUDWLRQVVKRZDYDULDWLRQRIIURP\HDUWR\HDUDQGORFDOYDULDWLRQRI ±WLPHVLVFRQVLGHUHGDVTXLWHQRUPDO 7KHHIIHFWLYHQHVVRIWKHUHDFWLRQVLQUHPRYLQJWKHVKRUW89UDGLDWLRQLVVKRZQ LQ)LJLQZKLFKWKHH[WUDWHUUHVWULDOVRODUIOX[DQGWKHDFWXDOIOX[UHDFKLQJWKH HDUWK¶V VXUIDFH LV VKRZQ 7KHUDGLDWLRQEHORZQPGRHVQRWUHDFKWKHHDUWK¶VVXUIDFHDWDOO89$ ZDYHEDQGH[WHQGLQJIURP ± LVQRWFDUFLQRJHQLFDWWKHFXUUHQWH[SRVXUH OHYHOV%LRORJLFDORUJDQLVPVDUHPRVWVHQVLWLYHWR89%UDGLDWLRQFRUUHVSRQGLQJWR ±QP7KH\DUHUHVSRQVLEOHIRUVXQEXUQVDQGVNLQFDQFHU7KHUHIRUHR]RQH SOD\VDFUXFLDOUROHLQUHGXFLQJWKH89%UDGLDWLRQUHDFKLQJWKHHDUWK

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

7KH QRWDWLRQV LQ WKH DERYH UHDFWLRQ DUH VSHFWURVFRSLF WHUPV ZKLFK VLJQLI\ WKDWDOOWKHUHDFWLRQSURGXFWVDUHQRWH[DFWO\HTXLYDOHQWLQWHUPVRIWKHLUHQHUJ\ FRQWHQW

7KH QRWDWLRQV LQ WKH DERYH UHDFWLRQ DUH VSHFWURVFRSLF WHUPV ZKLFK VLJQLI\ WKDWDOOWKHUHDFWLRQSURGXFWVDUHQRWH[DFWO\HTXLYDOHQWLQWHUPVRIWKHLUHQHUJ\ FRQWHQW

§ · 2  2 o 2   2  ¨ u  6J  ¸ ¨ ¸ © ¹

§ · 2  2 o 2   2  ¨ u  6J  ¸ ¨ ¸ © ¹



,QVXPPDU\R]RQHLVFRQVWDQWO\V\QWKHVL]HGE\WKHSKRWRO\VLVRIVRODUUDGLDWLRQLQ WKH HDUWK¶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

Q >7.  Q P 7 .  @ 



ZKHUHQQQDUHWKHFRQFHQWUDWLRQVRI22DQG2QPLVWKHFRQFHQWUDWLRQ RIDOORWKHUPROHFXOHV7DQG7DUHWKHSKRWRO\WLFUDWHVIRUHTXDWLRQVDQG DQG.DQG.DUHWKHUHDFWLRQUDWHVRIHTXDWLRQVDQG 8QWLO D IHZ \HDUV DJR WKH R]RQH IRUPDWLRQ DQG GHSOHWLRQ UHDFWLRQV ZHUH SURFHHGLQJDWVLPLODUUDWHVZLWKDVOLJKWELDVWRZDUGVIRUPDWLRQRIR]RQH7KHUHIRUH WKHUHZDVDQHWFRQFHQWUDWLRQRIR]RQHPROHFXOHVLQWKHVWUDWRVSKHUH7KHR]RQH FRQFHQWUDWLRQVVKRZDYDULDWLRQRIIURP\HDUWR\HDUDQGORFDOYDULDWLRQRI ±WLPHVLVFRQVLGHUHGDVTXLWHQRUPDO 7KHHIIHFWLYHQHVVRIWKHUHDFWLRQVLQUHPRYLQJWKHVKRUW89UDGLDWLRQLVVKRZQ LQ)LJLQZKLFKWKHH[WUDWHUUHVWULDOVRODUIOX[DQGWKHDFWXDOIOX[UHDFKLQJWKH HDUWK¶V VXUIDFH LV VKRZQ 7KHUDGLDWLRQEHORZQPGRHVQRWUHDFKWKHHDUWK¶VVXUIDFHDWDOO89$ ZDYHEDQGH[WHQGLQJIURP ± LVQRWFDUFLQRJHQLFDWWKHFXUUHQWH[SRVXUH OHYHOV%LRORJLFDORUJDQLVPVDUHPRVWVHQVLWLYHWR89%UDGLDWLRQFRUUHVSRQGLQJWR ±QP7KH\DUHUHVSRQVLEOHIRUVXQEXUQVDQGVNLQFDQFHU7KHUHIRUHR]RQH SOD\VDFUXFLDOUROHLQUHGXFLQJWKH89%UDGLDWLRQUHDFKLQJWKHHDUWK



,QVXPPDU\R]RQHLVFRQVWDQWO\V\QWKHVL]HGE\WKHSKRWRO\VLVRIVRODUUDGLDWLRQLQ WKH HDUWK¶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

Q >7.  Q P 7 .  @ 



ZKHUHQQQDUHWKHFRQFHQWUDWLRQVRI22DQG2QPLVWKHFRQFHQWUDWLRQ RIDOORWKHUPROHFXOHV7DQG7DUHWKHSKRWRO\WLFUDWHVIRUHTXDWLRQVDQG DQG.DQG.DUHWKHUHDFWLRQUDWHVRIHTXDWLRQVDQG 8QWLO D IHZ \HDUV DJR WKH R]RQH IRUPDWLRQ DQG GHSOHWLRQ UHDFWLRQV ZHUH SURFHHGLQJDWVLPLODUUDWHVZLWKDVOLJKWELDVWRZDUGVIRUPDWLRQRIR]RQH7KHUHIRUH WKHUHZDVDQHWFRQFHQWUDWLRQRIR]RQHPROHFXOHVLQWKHVWUDWRVSKHUH7KHR]RQH FRQFHQWUDWLRQVVKRZDYDULDWLRQRIIURP\HDUWR\HDUDQGORFDOYDULDWLRQRI ±WLPHVLVFRQVLGHUHGDVTXLWHQRUPDO 7KHHIIHFWLYHQHVVRIWKHUHDFWLRQVLQUHPRYLQJWKHVKRUW89UDGLDWLRQLVVKRZQ LQ)LJLQZKLFKWKHH[WUDWHUUHVWULDOVRODUIOX[DQGWKHDFWXDOIOX[UHDFKLQJWKH HDUWK¶V VXUIDFH LV VKRZQ 7KHUDGLDWLRQEHORZQPGRHVQRWUHDFKWKHHDUWK¶VVXUIDFHDWDOO89$ ZDYHEDQGH[WHQGLQJIURP ± LVQRWFDUFLQRJHQLFDWWKHFXUUHQWH[SRVXUH OHYHOV%LRORJLFDORUJDQLVPVDUHPRVWVHQVLWLYHWR89%UDGLDWLRQFRUUHVSRQGLQJWR ±QP7KH\DUHUHVSRQVLEOHIRUVXQEXUQVDQGVNLQFDQFHU7KHUHIRUHR]RQH SOD\VDFUXFLDOUROHLQUHGXFLQJWKH89%UDGLDWLRQUHDFKLQJWKHHDUWK

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Extraterrestrial flux

-2

Flux at ground (clear skies)

10

-4

10

-2

Flux at ground (clear skies)

10

UV-A

UV-B

10-6 280

300

Extraterrestrial flux

100

Flux (W/m2 -nm)

Flux (W/m2 -nm)

100

10

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

320

340

300

-4

380

280

400

UV-A

UV-B

10-6

300

320

Wavelength (nm)

340

300

380

400

Wavelength (nm)

)LJ6RODUDQGH[WUDWHUUHVWULDO89IOX[RQWKHHDUWK

)LJ6RODUDQGH[WUDWHUUHVWULDO89IOX[RQWKHHDUWK

7KH GLVWULEXWLRQ RI R]RQH LQ WKH VWUDWRVSKHUH KDV D SURIRXQG HIIHFW RQ WKH DWPRVSKHULFWHPSHUDWXUH$EVRUSWLRQRI89UDGLDWLRQUHVXOWVLQVWURQJWHPSHUDWXUH YDULDWLRQ7KHWHPSHUDWXUHJUDGLHQWG\QDPLFDOO\VWDELOL]HVWKHVWUDWRVSKHUHVWDEOH DQGPDNHVLWUHVLVWDQWWRYHUWLFDOPL[LQJ7KLVSHUPLWVWKHGHWHUPLQDWLRQRIR]RQH LQDYHUWLFDOFROXPQDVDIXQFWLRQRIDOWLWXGH)DVU\DQG'REVRQ>@PHDVXUHGWKH DWPRVSKHULFR]RQHE\VSHFWURPHWU\DQGSURYHGWKDWWKHSHDNR]RQHFRQFHQWUDWLRQ RFFXUVEHWZHHQ ±NP7KHFRQFHQWUDWLRQRIR]RQHLVXVXDOO\H[SUHVVHGLQ 'REVRQXQLWV'8 ,IDOOWKHR]RQHZHUHFRQWDLQHGLQDVLQJOHFROXPQRIDWPRVSKHUH LWZRXOGH[HUWPPSUHVVXUH7KLVFRUUHVSRQGVWR'87KHDQQXDODYHUDJH R]RQHFRQFHQWUDWLRQDWWKHHTXDWRULDOODWLWXGHVLV'8DQG'8DWVXESRODU ODWLWXGHV7KHUHIRUHRQHFDQVXUPLVHWKDWR]RQHSURGXFHGLQWKHHTXDWRULDOPLGGOH DQGXSSHUODWLWXGHVLVWUDQVSRUWHGWRWKHORZHUVWUDWRVSKHULFSRODUUHJLRQV$ERXW RIDOOWKHR]RQHSUHVHQWLQWKHVWUDWRVSKHUHLVIRXQGLQSRODUUHJLRQV 7KHEDFNJURXQGDWPRVSKHULFFRQFHQWUDWLRQRIR]RQHDWVHDOHYHOLV±  SSP7KHEDFNJURXQGFRQFHQWUDWLRQLQFUHDVHVZLWKDOWLWXGH0D[LPXPFRQFHQWUDWLRQ RI  SSP R]RQH KDV EHHQ REVHUYHG GXULQJ VPRJ SHULRGV 6PRJ HIIHFWV DUH SDUWLFXODUO\QRWLFHDEOHDWR]RQHFRQFHQWUDWLRQVJUHDWHUWKDQSSPDQGGHWHFWDEOH DERYHSSP'LXUQDOIOXFWXDWLRQRIR]RQHGXULQJVXPPHUUDQJHVIURPWR SSPDW&LQFLQDWWL$PD[LPXPRISSPZDVUHFRUGHGLQDQG SSPLQ :+2 :RUOG +HDOWK 2UJDQL]DWLRQ  VWDQGDUG IRU R]RQH H[SRVXUH LV ± SSEE\YROXPHSHU\HDUSSEFRUUHVSRQGVWRDSSUR[LPDWHO\PLFURJUDPVSHU FXELFPHWUH,QPRVWRIWKH,QGLDQFLWLHVLQFOXGLQJ'HOKL$KPHGDEDGDQG&KDQGLJDUK ±SSERIR]RQHKDYHEHHQUHFRUGHG

7KH GLVWULEXWLRQ RI R]RQH LQ WKH VWUDWRVSKHUH KDV D SURIRXQG HIIHFW RQ WKH DWPRVSKHULFWHPSHUDWXUH$EVRUSWLRQRI89UDGLDWLRQUHVXOWVLQVWURQJWHPSHUDWXUH YDULDWLRQ7KHWHPSHUDWXUHJUDGLHQWG\QDPLFDOO\VWDELOL]HVWKHVWUDWRVSKHUHVWDEOH DQGPDNHVLWUHVLVWDQWWRYHUWLFDOPL[LQJ7KLVSHUPLWVWKHGHWHUPLQDWLRQRIR]RQH LQDYHUWLFDOFROXPQDVDIXQFWLRQRIDOWLWXGH)DVU\DQG'REVRQ>@PHDVXUHGWKH DWPRVSKHULFR]RQHE\VSHFWURPHWU\DQGSURYHGWKDWWKHSHDNR]RQHFRQFHQWUDWLRQ RFFXUVEHWZHHQ ±NP7KHFRQFHQWUDWLRQRIR]RQHLVXVXDOO\H[SUHVVHGLQ 'REVRQXQLWV'8 ,IDOOWKHR]RQHZHUHFRQWDLQHGLQDVLQJOHFROXPQRIDWPRVSKHUH LWZRXOGH[HUWPPSUHVVXUH7KLVFRUUHVSRQGVWR'87KHDQQXDODYHUDJH R]RQHFRQFHQWUDWLRQDWWKHHTXDWRULDOODWLWXGHVLV'8DQG'8DWVXESRODU ODWLWXGHV7KHUHIRUHRQHFDQVXUPLVHWKDWR]RQHSURGXFHGLQWKHHTXDWRULDOPLGGOH DQGXSSHUODWLWXGHVLVWUDQVSRUWHGWRWKHORZHUVWUDWRVSKHULFSRODUUHJLRQV$ERXW RIDOOWKHR]RQHSUHVHQWLQWKHVWUDWRVSKHUHLVIRXQGLQSRODUUHJLRQV 7KHEDFNJURXQGDWPRVSKHULFFRQFHQWUDWLRQRIR]RQHDWVHDOHYHOLV±  SSP7KHEDFNJURXQGFRQFHQWUDWLRQLQFUHDVHVZLWKDOWLWXGH0D[LPXPFRQFHQWUDWLRQ RI  SSP R]RQH KDV EHHQ REVHUYHG GXULQJ VPRJ SHULRGV 6PRJ HIIHFWV DUH SDUWLFXODUO\QRWLFHDEOHDWR]RQHFRQFHQWUDWLRQVJUHDWHUWKDQSSPDQGGHWHFWDEOH DERYHSSP'LXUQDOIOXFWXDWLRQRIR]RQHGXULQJVXPPHUUDQJHVIURPWR SSPDW&LQFLQDWWL$PD[LPXPRISSPZDVUHFRUGHGLQDQG SSPLQ :+2 :RUOG +HDOWK 2UJDQL]DWLRQ  VWDQGDUG IRU R]RQH H[SRVXUH LV ± SSEE\YROXPHSHU\HDUSSEFRUUHVSRQGVWRDSSUR[LPDWHO\PLFURJUDPVSHU FXELFPHWUH,QPRVWRIWKH,QGLDQFLWLHVLQFOXGLQJ'HOKL$KPHGDEDGDQG&KDQGLJDUK ±SSERIR]RQHKDYHEHHQUHFRUGHG

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Extraterrestrial flux

10

-2

10

Flux at ground (clear skies)

-4

10

-2

10

UV-A

UV-B

10-6 280

300

320

Extraterrestrial flux

100

Flux (W/m2 -nm)

Flux (W/m2 -nm)

100

340

300

Flux at ground (clear skies)

-4

380

400

Wavelength (nm)

UV-A

UV-B

10-6 280

300

320

340

300

380

400

Wavelength (nm)

)LJ6RODUDQGH[WUDWHUUHVWULDO89IOX[RQWKHHDUWK

)LJ6RODUDQGH[WUDWHUUHVWULDO89IOX[RQWKHHDUWK

7KH GLVWULEXWLRQ RI R]RQH LQ WKH VWUDWRVSKHUH KDV D SURIRXQG HIIHFW RQ WKH DWPRVSKHULFWHPSHUDWXUH$EVRUSWLRQRI89UDGLDWLRQUHVXOWVLQVWURQJWHPSHUDWXUH YDULDWLRQ7KHWHPSHUDWXUHJUDGLHQWG\QDPLFDOO\VWDELOL]HVWKHVWUDWRVSKHUHVWDEOH DQGPDNHVLWUHVLVWDQWWRYHUWLFDOPL[LQJ7KLVSHUPLWVWKHGHWHUPLQDWLRQRIR]RQH LQDYHUWLFDOFROXPQDVDIXQFWLRQRIDOWLWXGH)DVU\DQG'REVRQ>@PHDVXUHGWKH DWPRVSKHULFR]RQHE\VSHFWURPHWU\DQGSURYHGWKDWWKHSHDNR]RQHFRQFHQWUDWLRQ RFFXUVEHWZHHQ ±NP7KHFRQFHQWUDWLRQRIR]RQHLVXVXDOO\H[SUHVVHGLQ 'REVRQXQLWV'8 ,IDOOWKHR]RQHZHUHFRQWDLQHGLQDVLQJOHFROXPQRIDWPRVSKHUH LWZRXOGH[HUWPPSUHVVXUH7KLVFRUUHVSRQGVWR'87KHDQQXDODYHUDJH R]RQHFRQFHQWUDWLRQDWWKHHTXDWRULDOODWLWXGHVLV'8DQG'8DWVXESRODU ODWLWXGHV7KHUHIRUHRQHFDQVXUPLVHWKDWR]RQHSURGXFHGLQWKHHTXDWRULDOPLGGOH DQGXSSHUODWLWXGHVLVWUDQVSRUWHGWRWKHORZHUVWUDWRVSKHULFSRODUUHJLRQV$ERXW RIDOOWKHR]RQHSUHVHQWLQWKHVWUDWRVSKHUHLVIRXQGLQSRODUUHJLRQV 7KHEDFNJURXQGDWPRVSKHULFFRQFHQWUDWLRQRIR]RQHDWVHDOHYHOLV±  SSP7KHEDFNJURXQGFRQFHQWUDWLRQLQFUHDVHVZLWKDOWLWXGH0D[LPXPFRQFHQWUDWLRQ RI  SSP R]RQH KDV EHHQ REVHUYHG GXULQJ VPRJ SHULRGV 6PRJ HIIHFWV DUH SDUWLFXODUO\QRWLFHDEOHDWR]RQHFRQFHQWUDWLRQVJUHDWHUWKDQSSPDQGGHWHFWDEOH DERYHSSP'LXUQDOIOXFWXDWLRQRIR]RQHGXULQJVXPPHUUDQJHVIURPWR SSPDW&LQFLQDWWL$PD[LPXPRISSPZDVUHFRUGHGLQDQG SSPLQ :+2 :RUOG +HDOWK 2UJDQL]DWLRQ  VWDQGDUG IRU R]RQH H[SRVXUH LV ± SSEE\YROXPHSHU\HDUSSEFRUUHVSRQGVWRDSSUR[LPDWHO\PLFURJUDPVSHU FXELFPHWUH,QPRVWRIWKH,QGLDQFLWLHVLQFOXGLQJ'HOKL$KPHGDEDGDQG&KDQGLJDUK ±SSERIR]RQHKDYHEHHQUHFRUGHG

7KH GLVWULEXWLRQ RI R]RQH LQ WKH VWUDWRVSKHUH KDV D SURIRXQG HIIHFW RQ WKH DWPRVSKHULFWHPSHUDWXUH$EVRUSWLRQRI89UDGLDWLRQUHVXOWVLQVWURQJWHPSHUDWXUH YDULDWLRQ7KHWHPSHUDWXUHJUDGLHQWG\QDPLFDOO\VWDELOL]HVWKHVWUDWRVSKHUHVWDEOH DQGPDNHVLWUHVLVWDQWWRYHUWLFDOPL[LQJ7KLVSHUPLWVWKHGHWHUPLQDWLRQRIR]RQH LQDYHUWLFDOFROXPQDVDIXQFWLRQRIDOWLWXGH)DVU\DQG'REVRQ>@PHDVXUHGWKH DWPRVSKHULFR]RQHE\VSHFWURPHWU\DQGSURYHGWKDWWKHSHDNR]RQHFRQFHQWUDWLRQ RFFXUVEHWZHHQ ±NP7KHFRQFHQWUDWLRQRIR]RQHLVXVXDOO\H[SUHVVHGLQ 'REVRQXQLWV'8 ,IDOOWKHR]RQHZHUHFRQWDLQHGLQDVLQJOHFROXPQRIDWPRVSKHUH LWZRXOGH[HUWPPSUHVVXUH7KLVFRUUHVSRQGVWR'87KHDQQXDODYHUDJH R]RQHFRQFHQWUDWLRQDWWKHHTXDWRULDOODWLWXGHVLV'8DQG'8DWVXESRODU ODWLWXGHV7KHUHIRUHRQHFDQVXUPLVHWKDWR]RQHSURGXFHGLQWKHHTXDWRULDOPLGGOH DQGXSSHUODWLWXGHVLVWUDQVSRUWHGWRWKHORZHUVWUDWRVSKHULFSRODUUHJLRQV$ERXW RIDOOWKHR]RQHSUHVHQWLQWKHVWUDWRVSKHUHLVIRXQGLQSRODUUHJLRQV 7KHEDFNJURXQGDWPRVSKHULFFRQFHQWUDWLRQRIR]RQHDWVHDOHYHOLV±  SSP7KHEDFNJURXQGFRQFHQWUDWLRQLQFUHDVHVZLWKDOWLWXGH0D[LPXPFRQFHQWUDWLRQ RI  SSP R]RQH KDV EHHQ REVHUYHG GXULQJ VPRJ SHULRGV 6PRJ HIIHFWV DUH SDUWLFXODUO\QRWLFHDEOHDWR]RQHFRQFHQWUDWLRQVJUHDWHUWKDQSSPDQGGHWHFWDEOH DERYHSSP'LXUQDOIOXFWXDWLRQRIR]RQHGXULQJVXPPHUUDQJHVIURPWR SSPDW&LQFLQDWWL$PD[LPXPRISSPZDVUHFRUGHGLQDQG SSPLQ :+2 :RUOG +HDOWK 2UJDQL]DWLRQ  VWDQGDUG IRU R]RQH H[SRVXUH LV ± SSEE\YROXPHSHU\HDUSSEFRUUHVSRQGVWRDSSUR[LPDWHO\PLFURJUDPVSHU FXELFPHWUH,QPRVWRIWKH,QGLDQFLWLHVLQFOXGLQJ'HOKL$KPHGDEDGDQG&KDQGLJDUK ±SSERIR]RQHKDYHEHHQUHFRUGHG

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

 '(6758&7,21 2) 675$7263+(5,& 2=21(

 '(6758&7,21 2) 675$7263+(5,& 2=21(

7KH GHOLFDWH EDODQFH EHWZHHQ WKH IRUPDWLRQ DQG GHVWUXFWLRQ RI R]RQH LV EHLQJ GLVWXUEHGE\LQFUHDVLQJFRQFHQWUDWLRQVRIFKORULQHEURPLQHDQGQLWURJHQZKLFK DFWDVFDWDO\VWVVSHHGLQJXSLWVUHPRYDO7KHPRVWSURPLQHQWR]RQHGHVWUXFWLYH JDVHVDUHFKORURIOXRURFDUERQV&)&V &)&VDUHYHU\VWDEOHFRPSRXQGVZKLFK GULIWLQWRWKHVWUDWRVSKHUHHDVLO\8QIRUWXQDWHO\WKH\DUHQRWUHPRYHGE\WKHQDWXUDO UHPRYDO SURFHVVHV LQ WKH VWUDWRVSKHUH ,Q WKH VWUDWRVSKHUH XOWUDYLROHW UDGLDWLRQ EUHDNVWKHPROHFXODUERQGVDQGUHOHDVHVWKHFKORULQHDFFRUGLQJWRWKHUHDFWLRQ

7KH GHOLFDWH EDODQFH EHWZHHQ WKH IRUPDWLRQ DQG GHVWUXFWLRQ RI R]RQH LV EHLQJ GLVWXUEHGE\LQFUHDVLQJFRQFHQWUDWLRQVRIFKORULQHEURPLQHDQGQLWURJHQZKLFK DFWDVFDWDO\VWVVSHHGLQJXSLWVUHPRYDO7KHPRVWSURPLQHQWR]RQHGHVWUXFWLYH JDVHVDUHFKORURIOXRURFDUERQV&)&V &)&VDUHYHU\VWDEOHFRPSRXQGVZKLFK GULIWLQWRWKHVWUDWRVSKHUHHDVLO\8QIRUWXQDWHO\WKH\DUHQRWUHPRYHGE\WKHQDWXUDO UHPRYDO SURFHVVHV LQ WKH VWUDWRVSKHUH ,Q WKH VWUDWRVSKHUH XOWUDYLROHW UDGLDWLRQ EUHDNVWKHPROHFXODUERQGVDQGUHOHDVHVWKHFKORULQHDFFRUGLQJWRWKHUHDFWLRQ

89  & &&O )  KQ o &O  &&O)



ZKHUHKQUHSUHVHQWV89&EDQGRIVRODUUDGLDWLRQ7KHFKORULQHDWRPUHOHDVHGLQ VXFKUHDFWLRQVDFWVDVDFDWDO\VWLQWKHR]RQHUHPRYDOSURFHVVDFFRUGLQJWRHTXDWLRQ 7KLVPHDQVWKDWFKORULQHDWRPUHPDLQVXQFKDQJHGZKLFKFDQWDNHSDUWLQ PRUHUHDFWLRQVRIWKHVDPHNLQG+HQFHLWXQOHDVKHVDFKDLQUHDFWLRQEUHDNLQJ GRZQWHQVRIWKRXVDQGVRIR]RQHPROHFXOHVEHIRUHLWUHWXUQVWRWKHWURSRVSKHUH DQGHYHQWXDOO\UHPRYHGDVK\GURFKORULFDFLG7KHVHFKORULQHDWRPVIXUWKHUWDNH SDUWLQWKHIROORZLQJUHDFWLRQV

89  & &&O )  KQ o &O  &&O)



ZKHUHKQUHSUHVHQWV89&EDQGRIVRODUUDGLDWLRQ7KHFKORULQHDWRPUHOHDVHGLQ VXFKUHDFWLRQVDFWVDVDFDWDO\VWLQWKHR]RQHUHPRYDOSURFHVVDFFRUGLQJWRHTXDWLRQ 7KLVPHDQVWKDWFKORULQHDWRPUHPDLQVXQFKDQJHGZKLFKFDQWDNHSDUWLQ PRUHUHDFWLRQVRIWKHVDPHNLQG+HQFHLWXQOHDVKHVDFKDLQUHDFWLRQEUHDNLQJ GRZQWHQVRIWKRXVDQGVRIR]RQHPROHFXOHVEHIRUHLWUHWXUQVWRWKHWURSRVSKHUH DQGHYHQWXDOO\UHPRYHGDVK\GURFKORULFDFLG7KHVHFKORULQHDWRPVIXUWKHUWDNH SDUWLQWKHIROORZLQJUHDFWLRQV

&O  2 o &O2  2 



&O  2 o &O2  2 



&O2  2 o &O  2 



&O2  2 o &O  2 



&+   &O o &+  +&O



&+   &O o &+  +&O



6HYHUDORWKHUSROOXWDQWVDUHDOVRLQWLPDWHO\LQYROYHGLQWKHGHVWUXFWLRQRIR]RQH PROHFXOHV )RU H[DPSOH FKORULQH R[LGH &O2  DOVR UHDFWV ZLWK WKH DWPRVSKHULF QLWURJHQGLR[LGHWRSURGXFHFKORULQHQLWUDWHLQ\LHOG

6HYHUDORWKHUSROOXWDQWVDUHDOVRLQWLPDWHO\LQYROYHGLQWKHGHVWUXFWLRQRIR]RQH PROHFXOHV )RU H[DPSOH FKORULQH R[LGH &O2  DOVR UHDFWV ZLWK WKH DWPRVSKHULF QLWURJHQGLR[LGHWRSURGXFHFKORULQHQLWUDWHLQ\LHOG

&O2  12  o &O212 

&O2  12  o &O212 





&KORULQHQLWUDWHDFWVRQO\DVDWHPSRUDU\UHVHUYRLUIRUFKORULQHDWQLJKW,QWKH GD\WLPHLWGHFRPSRVHVWRJLYHFKORULQHDWRPV

&KORULQHQLWUDWHDFWVRQO\DVDWHPSRUDU\UHVHUYRLUIRUFKORULQHDWQLJKW,QWKH GD\WLPHLWGHFRPSRVHVWRJLYHFKORULQHDWRPV

&O212   KQ o &O  12 



&O212   KQ o &O  12 



2  +  &O o +&O  2 



2  +  &O o +&O  2 



2  +  &O2 o +2&/  2 



2  +  &O2 o +2&/  2 



KQ +2&/  o 2+  &O



KQ +2&/  o 2+  &O



1LWULFR[LGHRQLWVRZQDOVRDWWDFNVR]RQHYLJRURXVO\WRSURGXFHPROHFXODU R[\JHQDQGQLWURJHQGLR[LGH7KHODWWHUUHDFWVZLWKDQDWRPRIR[\JHQWRSURGXFH

1LWULFR[LGHRQLWVRZQDOVRDWWDFNVR]RQHYLJRURXVO\WRSURGXFHPROHFXODU R[\JHQDQGQLWURJHQGLR[LGH7KHODWWHUUHDFWVZLWKDQDWRPRIR[\JHQWRSURGXFH

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

 '(6758&7,21 2) 675$7263+(5,& 2=21(

 '(6758&7,21 2) 675$7263+(5,& 2=21(

7KH GHOLFDWH EDODQFH EHWZHHQ WKH IRUPDWLRQ DQG GHVWUXFWLRQ RI R]RQH LV EHLQJ GLVWXUEHGE\LQFUHDVLQJFRQFHQWUDWLRQVRIFKORULQHEURPLQHDQGQLWURJHQZKLFK DFWDVFDWDO\VWVVSHHGLQJXSLWVUHPRYDO7KHPRVWSURPLQHQWR]RQHGHVWUXFWLYH JDVHVDUHFKORURIOXRURFDUERQV&)&V &)&VDUHYHU\VWDEOHFRPSRXQGVZKLFK GULIWLQWRWKHVWUDWRVSKHUHHDVLO\8QIRUWXQDWHO\WKH\DUHQRWUHPRYHGE\WKHQDWXUDO UHPRYDO SURFHVVHV LQ WKH VWUDWRVSKHUH ,Q WKH VWUDWRVSKHUH XOWUDYLROHW UDGLDWLRQ EUHDNVWKHPROHFXODUERQGVDQGUHOHDVHVWKHFKORULQHDFFRUGLQJWRWKHUHDFWLRQ

7KH GHOLFDWH EDODQFH EHWZHHQ WKH IRUPDWLRQ DQG GHVWUXFWLRQ RI R]RQH LV EHLQJ GLVWXUEHGE\LQFUHDVLQJFRQFHQWUDWLRQVRIFKORULQHEURPLQHDQGQLWURJHQZKLFK DFWDVFDWDO\VWVVSHHGLQJXSLWVUHPRYDO7KHPRVWSURPLQHQWR]RQHGHVWUXFWLYH JDVHVDUHFKORURIOXRURFDUERQV&)&V &)&VDUHYHU\VWDEOHFRPSRXQGVZKLFK GULIWLQWRWKHVWUDWRVSKHUHHDVLO\8QIRUWXQDWHO\WKH\DUHQRWUHPRYHGE\WKHQDWXUDO UHPRYDO SURFHVVHV LQ WKH VWUDWRVSKHUH ,Q WKH VWUDWRVSKHUH XOWUDYLROHW UDGLDWLRQ EUHDNVWKHPROHFXODUERQGVDQGUHOHDVHVWKHFKORULQHDFFRUGLQJWRWKHUHDFWLRQ

89  & &&O )  KQ o &O  &&O)



ZKHUHKQUHSUHVHQWV89&EDQGRIVRODUUDGLDWLRQ7KHFKORULQHDWRPUHOHDVHGLQ VXFKUHDFWLRQVDFWVDVDFDWDO\VWLQWKHR]RQHUHPRYDOSURFHVVDFFRUGLQJWRHTXDWLRQ 7KLVPHDQVWKDWFKORULQHDWRPUHPDLQVXQFKDQJHGZKLFKFDQWDNHSDUWLQ PRUHUHDFWLRQVRIWKHVDPHNLQG+HQFHLWXQOHDVKHVDFKDLQUHDFWLRQEUHDNLQJ GRZQWHQVRIWKRXVDQGVRIR]RQHPROHFXOHVEHIRUHLWUHWXUQVWRWKHWURSRVSKHUH DQGHYHQWXDOO\UHPRYHGDVK\GURFKORULFDFLG7KHVHFKORULQHDWRPVIXUWKHUWDNH SDUWLQWKHIROORZLQJUHDFWLRQV

89  & &&O )  KQ o &O  &&O)



ZKHUHKQUHSUHVHQWV89&EDQGRIVRODUUDGLDWLRQ7KHFKORULQHDWRPUHOHDVHGLQ VXFKUHDFWLRQVDFWVDVDFDWDO\VWLQWKHR]RQHUHPRYDOSURFHVVDFFRUGLQJWRHTXDWLRQ 7KLVPHDQVWKDWFKORULQHDWRPUHPDLQVXQFKDQJHGZKLFKFDQWDNHSDUWLQ PRUHUHDFWLRQVRIWKHVDPHNLQG+HQFHLWXQOHDVKHVDFKDLQUHDFWLRQEUHDNLQJ GRZQWHQVRIWKRXVDQGVRIR]RQHPROHFXOHVEHIRUHLWUHWXUQVWRWKHWURSRVSKHUH DQGHYHQWXDOO\UHPRYHGDVK\GURFKORULFDFLG7KHVHFKORULQHDWRPVIXUWKHUWDNH SDUWLQWKHIROORZLQJUHDFWLRQV

&O  2 o &O2  2 



&O  2 o &O2  2 



&O2  2 o &O  2 



&O2  2 o &O  2 



&+   &O o &+  +&O



&+   &O o &+  +&O



6HYHUDORWKHUSROOXWDQWVDUHDOVRLQWLPDWHO\LQYROYHGLQWKHGHVWUXFWLRQRIR]RQH PROHFXOHV )RU H[DPSOH FKORULQH R[LGH &O2  DOVR UHDFWV ZLWK WKH DWPRVSKHULF QLWURJHQGLR[LGHWRSURGXFHFKORULQHQLWUDWHLQ\LHOG

6HYHUDORWKHUSROOXWDQWVDUHDOVRLQWLPDWHO\LQYROYHGLQWKHGHVWUXFWLRQRIR]RQH PROHFXOHV )RU H[DPSOH FKORULQH R[LGH &O2  DOVR UHDFWV ZLWK WKH DWPRVSKHULF QLWURJHQGLR[LGHWRSURGXFHFKORULQHQLWUDWHLQ\LHOG

&O2  12  o &O212 

&O2  12  o &O212 





&KORULQHQLWUDWHDFWVRQO\DVDWHPSRUDU\UHVHUYRLUIRUFKORULQHDWQLJKW,QWKH GD\WLPHLWGHFRPSRVHVWRJLYHFKORULQHDWRPV

&KORULQHQLWUDWHDFWVRQO\DVDWHPSRUDU\UHVHUYRLUIRUFKORULQHDWQLJKW,QWKH GD\WLPHLWGHFRPSRVHVWRJLYHFKORULQHDWRPV

&O212   KQ o &O  12 



&O212   KQ o &O  12 



2  +  &O o +&O  2 



2  +  &O o +&O  2 



2  +  &O2 o +2&/  2 



2  +  &O2 o +2&/  2 



KQ +2&/  o 2+  &O



KQ +2&/  o 2+  &O



1LWULFR[LGHRQLWVRZQDOVRDWWDFNVR]RQHYLJRURXVO\WRSURGXFHPROHFXODU R[\JHQDQGQLWURJHQGLR[LGH7KHODWWHUUHDFWVZLWKDQDWRPRIR[\JHQWRSURGXFH

1LWULFR[LGHRQLWVRZQDOVRDWWDFNVR]RQHYLJRURXVO\WRSURGXFHPROHFXODU R[\JHQDQGQLWURJHQGLR[LGH7KHODWWHUUHDFWVZLWKDQDWRPRIR[\JHQWRSURGXFH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

QLWULF DFLG DJDLQ 7KXV DQRWKHU FKDLQ RI UHDFWLRQ PHFKDQLVP LV DYDLODEOH ZLWK 12[±2 V\VWHP ZKHUH DQRWKHU PROHFXOH RI R]RQH LV GHVWUR\HG EXW 12 LV UHJHQHUDWHGDVVKRZQEHORZ

QLWULF DFLG DJDLQ 7KXV DQRWKHU FKDLQ RI UHDFWLRQ PHFKDQLVP LV DYDLODEOH ZLWK 12[±2 V\VWHP ZKHUH DQRWKHU PROHFXOH RI R]RQH LV GHVWUR\HG EXW 12 LV UHJHQHUDWHGDVVKRZQEHORZ

12  2 o 12   2 



12  2 o 12   2 



12   2 o 12  2 



12   2 o 12  2 



5HOHDVHGQLWULFR[LGHFDQUHDFWZLWKDQRWKHUR]RQHPROHFXOHWKXVVWDUWLQJD FKDLQUHDFWLRQ7KLVF\FOHFDQEHWHUPLQDWHGRQO\E\WKHUHDFWLRQRIDQRWKHUIUHH 2+UDGLFDODFFRUGLQJWRWKHUHDFWLRQ

5HOHDVHGQLWULFR[LGHFDQUHDFWZLWKDQRWKHUR]RQHPROHFXOHWKXVVWDUWLQJD FKDLQUHDFWLRQ7KLVF\FOHFDQEHWHUPLQDWHGRQO\E\WKHUHDFWLRQRIDQRWKHUIUHH 2+UDGLFDODFFRUGLQJWRWKHUHDFWLRQ

12   2+ o +12

12   2+ o +12





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

 &+/252)/8252&$5%216

 &+/252)/8252&$5%216

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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

QLWULF DFLG DJDLQ 7KXV DQRWKHU FKDLQ RI UHDFWLRQ PHFKDQLVP LV DYDLODEOH ZLWK 12[±2 V\VWHP ZKHUH DQRWKHU PROHFXOH RI R]RQH LV GHVWUR\HG EXW 12 LV UHJHQHUDWHGDVVKRZQEHORZ

QLWULF DFLG DJDLQ 7KXV DQRWKHU FKDLQ RI UHDFWLRQ PHFKDQLVP LV DYDLODEOH ZLWK 12[±2 V\VWHP ZKHUH DQRWKHU PROHFXOH RI R]RQH LV GHVWUR\HG EXW 12 LV UHJHQHUDWHGDVVKRZQEHORZ

12  2 o 12   2 



12  2 o 12   2 



12   2 o 12  2 



12   2 o 12  2 



5HOHDVHGQLWULFR[LGHFDQUHDFWZLWKDQRWKHUR]RQHPROHFXOHWKXVVWDUWLQJD FKDLQUHDFWLRQ7KLVF\FOHFDQEHWHUPLQDWHGRQO\E\WKHUHDFWLRQRIDQRWKHUIUHH 2+UDGLFDODFFRUGLQJWRWKHUHDFWLRQ

5HOHDVHGQLWULFR[LGHFDQUHDFWZLWKDQRWKHUR]RQHPROHFXOHWKXVVWDUWLQJD FKDLQUHDFWLRQ7KLVF\FOHFDQEHWHUPLQDWHGRQO\E\WKHUHDFWLRQRIDQRWKHUIUHH 2+UDGLFDODFFRUGLQJWRWKHUHDFWLRQ

12   2+ o +12

12   2+ o +12





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

 &+/252)/8252&$5%216

 &+/252)/8252&$5%216

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

&)&LVQRWWKHRQO\FKHPLFDOLQYROYHGLQWKHGHVWUXFWLRQRIR]RQHOD\HU>@ 7KHUH DUH PRUH WKDQ  FKHPLFDOV WKDW FDQ EH FODVVLILHG DV &)&V ,W PD\ EH DSSURSULDWHKHUHWRXQGHUVWDQGWKHFKHPLVWU\RIWKH&)&V &KORURIOXRURFDUERQVDUHFRPSRXQGVFRQWDLQLQJFKORULQHIOXRULQHDQGFDUERQ $V D FODVV WKH\ DUH UHIHUUHG WR DV )UHRQV &)&V GR QRW RFFXU QDWXUDOO\ LQ WKH HQYLURQPHQW$VDPDWWHURIIDFWHYHQFKORULQHDQGIOXRULQHGRQRWRFFXULQQDWXUH LQWKHLUHOHPHQWDOVWDWH&)&VLQSDUWLFXODUDUHV\QWKHWLFFRPSRXQGVILUVWGHYHORSHG E\*HQHUDO0RWRUVIRUXVHLQKRXVHKROGUHIULJHUDWRUVDVDUHSODFHPHQWRIVXOSKXU GLR[LGHDQGDPPRQLD &)&VDUHFKHPLFDOO\LQHUWQRQWR[LFQRQIODPPDEOHLQYLVLEOHWDVWHOHVVDQG RGRXUOHVV&)&VDUHPDLQO\XVHGDVUHIULJHUDQWVVROYHQWVIRDPLQJDJHQWVLQWKH PDQXIDFWXUHRIULJLGDQGIOH[LEOHSODVWLFIRDPVDHURVROSURSHOODQWVIRUGHRGRUDQWV KDLUVSUD\VSUD\SDLQWHWF7DEOHVKRZVWKHFDWHJRU\ZLVHXVDJHRI&)&V &)&VDUHUHIHUUHGWRLQWKHOLWHUDWXUHE\DYDULHW\RIQRPHQFODWXUHV\VWHPV 6LQJOHFDUERQFRPSRXQGVDUHFRPPRQO\FDOOHGDVFKORURIOXRURPHWKDQHV&)0V  7KXV ZH FDQ KDYH WULFKORURIOXRURPHWKDQH &)&O  GLFKORURGLIOXRURPHWKDQH &)&O  HWF ,I DOO WKH K\GURJHQV LQ PHWKDQH DUH UHSODFHG E\ FKORULQH ZH JHW IXOO\ KDORJHQDWHG FDUERQ WHWUDFKORULGH &)&V FRQWDLQLQJ K\GURJHQ DUH FDOOHG

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH  7DEOH8VHVRI&)&V

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH  7DEOH8VHVRI&)&V

8VH

6KDUHRIWKHWRWDO

$HURVROV 5LJLGIRDPV 6ROYHQWV $LUFRQGLWLRQLQJ 5HIULJHUDQWV )OH[LEOHIRDP 2WKHUV

      

8VH

6KDUHRIWKHWRWDO

$HURVROV 5LJLGIRDPV 6ROYHQWV $LUFRQGLWLRQLQJ 5HIULJHUDQWV )OH[LEOHIRDP 2WKHUV

      

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

K\GURFKORURIOXRURPHWKDQHV+&)&V ,IRQO\IOXRULQHDQGK\GURJHQDUHSUHVHQW WKH\DUHFDOOHGK\GURIOXRURFDUERQVRU+)&V&RPSRXQGVFRQWDLQLQJRQO\K\GURJHQ DQGFKORULQHDUHFDOOHGKDORFDUERQVRUFKORURFDUERQV0RVWRIWKH&)&VDUHPDUNHWHG XQGHUUHJLVWHUHGWUDGHQDPHVE\WKHPDQXIDFWXUHUV $QRWKHUV\VWHPRIQRPHQFODWXUHLVIROORZHGE\'XSRQWWKHPDQXIDFWXUHUV RIIUHRQV$FFRUGLQJWRWKLVV\VWHP&&O)&&O)DQG&+&O)DUHUHIHUUHGWRDV )UHRQ)UHRQDQG)UHRQ )RUFKORURIOXRURFDUERQVFRQWDLQLQJWZRRUPRUHFDUERQDWRPVDWKUHHGLJLW QXPEHULQJV\VWHPREWDLQHGE\DGGLQJWRWKHQXPEHULVXVHG7KHILUVWGLJLW FRUUHVSRQGVWRWKHQXPEHURIFDUERQDWRPVPLQXVRQHVHFRQGWRWKHQXPEHURI K\GURJHQVSOXVRQHDQGWKHWKLUGWRWKHQXPEHURIIOXRULQHDWRPV7KXV

) UHSUHVHQWV  FDUERQ  K\GURJHQ  IOXRULQH DQG  FKORULQH DWRPV UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)&O ) UHSUHVHQWV  FDUERQ  K\GURJHQ  IOXRULQH DQG  FKORULQH DWRPV UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)+&O ) UHSUHVHQWV  FDUERQ 2 K\GURJHQ  IOXRULQH DQG  FKORULQH DWRPV UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)&O ) UHSUHVHQWV  FDUERQ  K\GURJHQ  IOXRULQH DQG  FKORULQH DWRP UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)+&O

) UHSUHVHQWV  FDUERQ  K\GURJHQ  IOXRULQH DQG  FKORULQH DWRPV UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)&O ) UHSUHVHQWV  FDUERQ  K\GURJHQ  IOXRULQH DQG  FKORULQH DWRPV UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)+&O ) UHSUHVHQWV  FDUERQ 2 K\GURJHQ  IOXRULQH DQG  FKORULQH DWRPV UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)&O ) UHSUHVHQWV  FDUERQ  K\GURJHQ  IOXRULQH DQG  FKORULQH DWRP UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)+&O

$QRWKHUQRPHQFODWXUHIRUFKORURIOXRURFDUERQVLVE\DQXPEHUV\VWHPZKLFK LVDOVRDYHU\VLPSOHV\VWHPDQGOHDGVWRXQDPELJXRXVQRPHQFODWXUH)RUH[DPSOH WULFKORURPHWKDQH&)&O LVFDOOHG&)&±LPSO\LQJWKDWDOOWKHKDORJHQVDUHERQGHG WR WKH VDPH FDUERQ DWRP 'LFKORURGLIOXRURPHWKDQH LV &)&O ZKHUH  KDORJHQ DWRPVDUHERQGHGWRWKHVDPHFDUERQDWRP&KHPLFDOIRUPXODRID&)&LVGHWHUPLQHG E\DGGLQJWRWKH&)&QXPEHUDQGWKHUHVXOWLQJGLJLWQXPEHUUHIHUVWRFDUERQ K\GURJHQDQGIOXRULQH7KHUHPDLQLQJERQGLQJVLWHVDUHDVFULEHGWRFKORULQH)RU H[DPSOH&)&LV

$QRWKHUQRPHQFODWXUHIRUFKORURIOXRURFDUERQVLVE\DQXPEHUV\VWHPZKLFK LVDOVRDYHU\VLPSOHV\VWHPDQGOHDGVWRXQDPELJXRXVQRPHQFODWXUH)RUH[DPSOH WULFKORURPHWKDQH&)&O LVFDOOHG&)&±LPSO\LQJWKDWDOOWKHKDORJHQVDUHERQGHG WR WKH VDPH FDUERQ DWRP 'LFKORURGLIOXRURPHWKDQH LV &)&O ZKHUH  KDORJHQ DWRPVDUHERQGHGWRWKHVDPHFDUERQDWRP&KHPLFDOIRUPXODRID&)&LVGHWHUPLQHG E\DGGLQJWRWKH&)&QXPEHUDQGWKHUHVXOWLQJGLJLWQXPEHUUHIHUVWRFDUERQ K\GURJHQDQGIOXRULQH7KHUHPDLQLQJERQGLQJVLWHVDUHDVFULEHGWRFKORULQH)RU H[DPSOH&)&LV

&)&±LV LPSOLHVFDUERQK\GURJHQDQGIOXRULQHDWRPV

&)&±LV LPSOLHVFDUERQK\GURJHQDQGIOXRULQHDWRPV

7KXV&)&LV&O&) 

7KXV&)&LV&O&) 

&)&LV &DUERQVQR+\GURJHQ)OXRULQHDQG&KORULQH +HQFHWKHIRUPXODHRIWKHFRPSRXQGLV&)&O

&)&LV &DUERQVQR+\GURJHQ)OXRULQHDQG&KORULQH +HQFHWKHIRUPXODHRIWKHFRPSRXQGLV&)&O

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

7DEOH8VHVRI&)&V 8VH $HURVROV 5LJLGIRDPV 6ROYHQWV $LUFRQGLWLRQLQJ 5HIULJHUDQWV )OH[LEOHIRDP 2WKHUV

7DEOH8VHVRI&)&V 6KDUHRIWKHWRWDO       

8VH $HURVROV 5LJLGIRDPV 6ROYHQWV $LUFRQGLWLRQLQJ 5HIULJHUDQWV )OH[LEOHIRDP 2WKHUV

6KDUHRIWKHWRWDO       

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

) UHSUHVHQWV  FDUERQ  K\GURJHQ  IOXRULQH DQG  FKORULQH DWRPV UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)&O ) UHSUHVHQWV  FDUERQ  K\GURJHQ  IOXRULQH DQG  FKORULQH DWRPV UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)+&O ) UHSUHVHQWV  FDUERQ 2 K\GURJHQ  IOXRULQH DQG  FKORULQH DWRPV UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)&O ) UHSUHVHQWV  FDUERQ  K\GURJHQ  IOXRULQH DQG  FKORULQH DWRP UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)+&O

) UHSUHVHQWV  FDUERQ  K\GURJHQ  IOXRULQH DQG  FKORULQH DWRPV UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)&O ) UHSUHVHQWV  FDUERQ  K\GURJHQ  IOXRULQH DQG  FKORULQH DWRPV UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)+&O ) UHSUHVHQWV  FDUERQ 2 K\GURJHQ  IOXRULQH DQG  FKORULQH DWRPV UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)&O ) UHSUHVHQWV  FDUERQ  K\GURJHQ  IOXRULQH DQG  FKORULQH DWRP UHVSHFWLYHO\+HQFHWKHIRUPXODLV&)+&O

$QRWKHUQRPHQFODWXUHIRUFKORURIOXRURFDUERQVLVE\DQXPEHUV\VWHPZKLFK LVDOVRDYHU\VLPSOHV\VWHPDQGOHDGVWRXQDPELJXRXVQRPHQFODWXUH)RUH[DPSOH WULFKORURPHWKDQH&)&O LVFDOOHG&)&±LPSO\LQJWKDWDOOWKHKDORJHQVDUHERQGHG WR WKH VDPH FDUERQ DWRP 'LFKORURGLIOXRURPHWKDQH LV &)&O ZKHUH  KDORJHQ DWRPVDUHERQGHGWRWKHVDPHFDUERQDWRP&KHPLFDOIRUPXODRID&)&LVGHWHUPLQHG E\DGGLQJWRWKH&)&QXPEHUDQGWKHUHVXOWLQJGLJLWQXPEHUUHIHUVWRFDUERQ K\GURJHQDQGIOXRULQH7KHUHPDLQLQJERQGLQJVLWHVDUHDVFULEHGWRFKORULQH)RU H[DPSOH&)&LV

$QRWKHUQRPHQFODWXUHIRUFKORURIOXRURFDUERQVLVE\DQXPEHUV\VWHPZKLFK LVDOVRDYHU\VLPSOHV\VWHPDQGOHDGVWRXQDPELJXRXVQRPHQFODWXUH)RUH[DPSOH WULFKORURPHWKDQH&)&O LVFDOOHG&)&±LPSO\LQJWKDWDOOWKHKDORJHQVDUHERQGHG WR WKH VDPH FDUERQ DWRP 'LFKORURGLIOXRURPHWKDQH LV &)&O ZKHUH  KDORJHQ DWRPVDUHERQGHGWRWKHVDPHFDUERQDWRP&KHPLFDOIRUPXODRID&)&LVGHWHUPLQHG E\DGGLQJWRWKH&)&QXPEHUDQGWKHUHVXOWLQJGLJLWQXPEHUUHIHUVWRFDUERQ K\GURJHQDQGIOXRULQH7KHUHPDLQLQJERQGLQJVLWHVDUHDVFULEHGWRFKORULQH)RU H[DPSOH&)&LV

&)&±LV LPSOLHVFDUERQK\GURJHQDQGIOXRULQHDWRPV

&)&±LV LPSOLHVFDUERQK\GURJHQDQGIOXRULQHDWRPV

7KXV&)&LV&O&) 

7KXV&)&LV&O&) 

&)&LV &DUERQVQR+\GURJHQ)OXRULQHDQG&KORULQH +HQFHWKHIRUPXODHRIWKHFRPSRXQGLV&)&O

&)&LV &DUERQVQR+\GURJHQ)OXRULQHDQG&KORULQH +HQFHWKHIRUPXODHRIWKHFRPSRXQGLV&)&O

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

&&O)&&O)KDV&DUERQ+\GURJHQDQG)OXRULQH  ± LQGLFDWLQJWKDWLWLVDQHWKDQHGHULYDWLYH

&&O)&&O)KDV&DUERQ+\GURJHQDQG)OXRULQH  ± LQGLFDWLQJWKDWLWLVDQHWKDQHGHULYDWLYH

)RUKDORQVFRQWDLQLQJFKORULQHEURPLQHK\GURJHQDQGIOXRULQHWKHILUVWQXPEHU GHQRWHV WKH QXPEHU RI FDUERQV VHFRQG WR WKH QXPEHU RI IOXRULQH WKLUG WR WKH QXPEHURIFKORULQHVDQGWKHIRXUWKWRWKHQXPEHUEURPLQHV7KXV

)RUKDORQVFRQWDLQLQJFKORULQHEURPLQHK\GURJHQDQGIOXRULQHWKHILUVWQXPEHU GHQRWHV WKH QXPEHU RI FDUERQV VHFRQG WR WKH QXPEHU RI IOXRULQH WKLUG WR WKH QXPEHURIFKORULQHVDQGWKHIRXUWKWRWKHQXPEHUEURPLQHV7KXV

&)%U LV &)%U LV &)%U LV

) )DQG )

&)%U LV &)%U LV &)%U LV

) )DQG )

7KHPRVWZLGHO\XVHG&)&VDUH&)&&)&DQG&)&2WKHULPSRUWDQW FKORURIOXRURFDUERQVDUHOLVWHGLQ7DEOH0RUHWKDQKDOIRIWKHZRUOGHPLVVLRQ RI &)& DQG &)& ZHUH  WRQV SHU \HDU E\  7KH 86 )'$ EDQQHGWKHXVHRI&)&VLQQRQHVVHQWLDODHURVROSURSHOODQWDSSOLFDWLRQVDQGRWKHU QDWLRQVIROORZHGVXLW

7KHPRVWZLGHO\XVHG&)&VDUH&)&&)&DQG&)&2WKHULPSRUWDQW FKORURIOXRURFDUERQVDUHOLVWHGLQ7DEOH0RUHWKDQKDOIRIWKHZRUOGHPLVVLRQ RI &)& DQG &)& ZHUH  WRQV SHU \HDU E\  7KH 86 )'$ EDQQHGWKHXVHRI&)&VLQQRQHVVHQWLDODHURVROSURSHOODQWDSSOLFDWLRQVDQGRWKHU QDWLRQVIROORZHGVXLW

7DEOH6RPHLPSRUWDQW&)&V

7DEOH6RPHLPSRUWDQW&)&V

7UDGHQDPH

&KHPLFDOQDPH

)RUPXODH

0RO ZW

%3

7UDGHQDPH

&KHPLFDOQDPH

)RUPXODH

0RO ZW

%3 

)

7ULFKORURWULIOXRURPHWKDQH

&&O)





)

7ULFKORURWULIOXRURPHWKDQH

&&O)



)

'LFKORURGLIOXRURPHWKDQH

&&O)



±

)

'LFKORURGLIOXRURPHWKDQH

&&O)



±

)

'LIOXRURFKORURPHWKDQH

&+)&O



±

)

'LIOXRURFKORURPHWKDQH

&+)&O



± ±

)

7ULIOXRURWULFKORURHWKDQH

&&O)±&&O)



±

)

7ULIOXRURWULFKORURHWKDQH

&&O)±&&O)



)

7HWUDIOXRURWULFKORURHWKDQH

&&O)±&&O)





)

7HWUDIOXRURWULFKORURHWKDQH

&&O)±&&O)





)

3HQWDIOXRURHWKDQH

&&O)±&)



±

)

3HQWDIOXRURHWKDQH

&&O)±&)



±

)

'LIOXRUREURPRPHWKDQH

&)%U&O



±

)

'LIOXRUREURPRPHWKDQH

&)%U&O



±

)

7ULIOXRUREURPRPHWKDQH

&)%U



±

)

7ULIOXRUREURPRPHWKDQH

&)%U



±

)

3HQWDIOXRUREURPRPHWKDQH

)&&)%U



±

)

3HQWDIOXRUREURPRPHWKDQH

)&&)%U



±

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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

&&O)&&O)KDV&DUERQ+\GURJHQDQG)OXRULQH  ± LQGLFDWLQJWKDWLWLVDQHWKDQHGHULYDWLYH

&&O)&&O)KDV&DUERQ+\GURJHQDQG)OXRULQH  ± LQGLFDWLQJWKDWLWLVDQHWKDQHGHULYDWLYH

)RUKDORQVFRQWDLQLQJFKORULQHEURPLQHK\GURJHQDQGIOXRULQHWKHILUVWQXPEHU GHQRWHV WKH QXPEHU RI FDUERQV VHFRQG WR WKH QXPEHU RI IOXRULQH WKLUG WR WKH QXPEHURIFKORULQHVDQGWKHIRXUWKWRWKHQXPEHUEURPLQHV7KXV

)RUKDORQVFRQWDLQLQJFKORULQHEURPLQHK\GURJHQDQGIOXRULQHWKHILUVWQXPEHU GHQRWHV WKH QXPEHU RI FDUERQV VHFRQG WR WKH QXPEHU RI IOXRULQH WKLUG WR WKH QXPEHURIFKORULQHVDQGWKHIRXUWKWRWKHQXPEHUEURPLQHV7KXV

&)%U LV &)%U LV &)%U LV

) )DQG )

&)%U LV &)%U LV &)%U LV

) )DQG )

7KHPRVWZLGHO\XVHG&)&VDUH&)&&)&DQG&)&2WKHULPSRUWDQW FKORURIOXRURFDUERQVDUHOLVWHGLQ7DEOH0RUHWKDQKDOIRIWKHZRUOGHPLVVLRQ RI &)& DQG &)& ZHUH  WRQV SHU \HDU E\  7KH 86 )'$ EDQQHGWKHXVHRI&)&VLQQRQHVVHQWLDODHURVROSURSHOODQWDSSOLFDWLRQVDQGRWKHU QDWLRQVIROORZHGVXLW

7KHPRVWZLGHO\XVHG&)&VDUH&)&&)&DQG&)&2WKHULPSRUWDQW FKORURIOXRURFDUERQVDUHOLVWHGLQ7DEOH0RUHWKDQKDOIRIWKHZRUOGHPLVVLRQ RI &)& DQG &)& ZHUH  WRQV SHU \HDU E\  7KH 86 )'$ EDQQHGWKHXVHRI&)&VLQQRQHVVHQWLDODHURVROSURSHOODQWDSSOLFDWLRQVDQGRWKHU QDWLRQVIROORZHGVXLW

7DEOH6RPHLPSRUWDQW&)&V

7DEOH6RPHLPSRUWDQW&)&V

7UDGHQDPH

&KHPLFDOQDPH

)RUPXODH

0RO ZW

%3

7UDGHQDPH

&KHPLFDOQDPH

)RUPXODH

0RO ZW

%3 

)

7ULFKORURWULIOXRURPHWKDQH

&&O)





)

7ULFKORURWULIOXRURPHWKDQH

&&O)



)

'LFKORURGLIOXRURPHWKDQH

&&O)



±

)

'LFKORURGLIOXRURPHWKDQH

&&O)



±

)

'LIOXRURFKORURPHWKDQH

&+)&O



±

)

'LIOXRURFKORURPHWKDQH

&+)&O



± ±

)

7ULIOXRURWULFKORURHWKDQH

&&O)±&&O)



±

)

7ULIOXRURWULFKORURHWKDQH

&&O)±&&O)



)

7HWUDIOXRURWULFKORURHWKDQH

&&O)±&&O)





)

7HWUDIOXRURWULFKORURHWKDQH

&&O)±&&O)





)

3HQWDIOXRURHWKDQH

&&O)±&)



±

)

3HQWDIOXRURHWKDQH

&&O)±&)



±

)

'LIOXRUREURPRPHWKDQH

&)%U&O



±

)

'LIOXRUREURPRPHWKDQH

&)%U&O



±

)

7ULIOXRUREURPRPHWKDQH

&)%U



±

)

7ULIOXRUREURPRPHWKDQH

&)%U



±

)

3HQWDIOXRUREURPRPHWKDQH

)&&)%U



±

)

3HQWDIOXRUREURPRPHWKDQH

)&&)%U



±

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

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

 &)&6,17+((19,5210(17

 &)&6,17+((19,5210(17

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±QPZKHUHDVLQ&&OERQGLWLV  QP7KHUHIRUHLQ&)&ORQO\ 89&UDGLDWLRQFDQEUHDNWKHERQGRI&&OUDWKHUWKDQ&)ERQGDFFRUGLQJWRWKH UHDFWLRQ

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±QPZKHUHDVLQ&&OERQGLWLV  QP7KHUHIRUHLQ&)&ORQO\ 89&UDGLDWLRQFDQEUHDNWKHERQGRI&&OUDWKHUWKDQ&)ERQGDFFRUGLQJWRWKH UHDFWLRQ

XY  F &) &/   KY  o &) &O &O

XY  F &) &/   KY  o &) &O &O

7KHFKORULQHDWRPUHOHDVHGUHDFWVZLWKR]RQHWRSURGXFHR[\JHQ &)&DQG&)&KDYHDWWUDFWHGPD[LPXPDWWHQWLRQRZLQJWRWKHLUR]RQH GHSOHWLRQ SRWHQWLDO $QRWKHU FDXVH RI FRQFHUQ LV WKHLU UHODWLYHO\ KLJK UHVLGHQFH WLPHV )LJXUH  VKRZV WKH UHODWLRQVKLS EHWZHHQ R]RQH GHSOHWLRQ DQG JOREDO ZDUPLQJSRWHQWLDOVIRUDQXPEHU&)&V+&)&VDQG+)&V&)&±LVJLYHQDQ DUELWUDU\YDOXHRIRQHDFKD[LV

7KHFKORULQHDWRPUHOHDVHGUHDFWVZLWKR]RQHWRSURGXFHR[\JHQ &)&DQG&)&KDYHDWWUDFWHGPD[LPXPDWWHQWLRQRZLQJWRWKHLUR]RQH GHSOHWLRQ SRWHQWLDO $QRWKHU FDXVH RI FRQFHUQ LV WKHLU UHODWLYHO\ KLJK UHVLGHQFH WLPHV )LJXUH  VKRZV WKH UHODWLRQVKLS EHWZHHQ R]RQH GHSOHWLRQ DQG JOREDO ZDUPLQJSRWHQWLDOVIRUDQXPEHU&)&V+&)&VDQG+)&V&)&±LVJLYHQDQ DUELWUDU\YDOXHRIRQHDFKD[LV

CFCs

HCFCs

HFCs

CFCs

114

12

11

HCFCs

114

12

11

1.0

HFCs

1.0 113

113 115

115

0.5

0.5 141b 124

141b 124

22 142b 125

123

22 142b 125

123 O 134a

143a

3

2

1

O

4

134a

152a

143a

3

2

1

4

152a

)LJ5HODWLYHJOREDOZDUPLQJSRWHQWLDOVRIFKORURIOXRURFDUERQV

)LJ5HODWLYHJOREDOZDUPLQJSRWHQWLDOVRIFKORURIOXRURFDUERQV

7KH DUHDV RI FLUFOHV DUH SURSRUWLRQDO WR WKH DWPRVSKHULF OLIHWLPH RI HDFK VXEVWDQFH (PLVVLRQ UDWH DQG UHVLGHQFH WLPHV IRU VRPH PRUH FRPSRXQGV KDYH EHHQOLVWHGLQ7DEOH

7KH DUHDV RI FLUFOHV DUH SURSRUWLRQDO WR WKH DWPRVSKHULF OLIHWLPH RI HDFK VXEVWDQFH (PLVVLRQ UDWH DQG UHVLGHQFH WLPHV IRU VRPH PRUH FRPSRXQGV KDYH EHHQOLVWHGLQ7DEOH

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

 &)&6,17+((19,5210(17

 &)&6,17+((19,5210(17

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±QPZKHUHDVLQ&&OERQGLWLV  QP7KHUHIRUHLQ&)&ORQO\ 89&UDGLDWLRQFDQEUHDNWKHERQGRI&&OUDWKHUWKDQ&)ERQGDFFRUGLQJWRWKH UHDFWLRQ

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±QPZKHUHDVLQ&&OERQGLWLV  QP7KHUHIRUHLQ&)&ORQO\ 89&UDGLDWLRQFDQEUHDNWKHERQGRI&&OUDWKHUWKDQ&)ERQGDFFRUGLQJWRWKH UHDFWLRQ

XY  F &) &/   KY  o &) &O &O

XY  F &) &/   KY  o &) &O &O

7KHFKORULQHDWRPUHOHDVHGUHDFWVZLWKR]RQHWRSURGXFHR[\JHQ &)&DQG&)&KDYHDWWUDFWHGPD[LPXPDWWHQWLRQRZLQJWRWKHLUR]RQH GHSOHWLRQ SRWHQWLDO $QRWKHU FDXVH RI FRQFHUQ LV WKHLU UHODWLYHO\ KLJK UHVLGHQFH WLPHV )LJXUH  VKRZV WKH UHODWLRQVKLS EHWZHHQ R]RQH GHSOHWLRQ DQG JOREDO ZDUPLQJSRWHQWLDOVIRUDQXPEHU&)&V+&)&VDQG+)&V&)&±LVJLYHQDQ DUELWUDU\YDOXHRIRQHDFKD[LV

7KHFKORULQHDWRPUHOHDVHGUHDFWVZLWKR]RQHWRSURGXFHR[\JHQ &)&DQG&)&KDYHDWWUDFWHGPD[LPXPDWWHQWLRQRZLQJWRWKHLUR]RQH GHSOHWLRQ SRWHQWLDO $QRWKHU FDXVH RI FRQFHUQ LV WKHLU UHODWLYHO\ KLJK UHVLGHQFH WLPHV )LJXUH  VKRZV WKH UHODWLRQVKLS EHWZHHQ R]RQH GHSOHWLRQ DQG JOREDO ZDUPLQJSRWHQWLDOVIRUDQXPEHU&)&V+&)&VDQG+)&V&)&±LVJLYHQDQ DUELWUDU\YDOXHRIRQHDFKD[LV

CFCs

HCFCs

HFCs

CFCs

114

12

11

HCFCs

114

12

11

1.0

HFCs

1.0 113

113 115

115

0.5

0.5 141b 124

141b 124

22 142b 125

123

22 142b 125

123 O 134a

143a

1

2

3

4

152a

O 134a

143a

1

2

3

4

152a

)LJ5HODWLYHJOREDOZDUPLQJSRWHQWLDOVRIFKORURIOXRURFDUERQV

)LJ5HODWLYHJOREDOZDUPLQJSRWHQWLDOVRIFKORURIOXRURFDUERQV

7KH DUHDV RI FLUFOHV DUH SURSRUWLRQDO WR WKH DWPRVSKHULF OLIHWLPH RI HDFK VXEVWDQFH (PLVVLRQ UDWH DQG UHVLGHQFH WLPHV IRU VRPH PRUH FRPSRXQGV KDYH EHHQOLVWHGLQ7DEOH

7KH DUHDV RI FLUFOHV DUH SURSRUWLRQDO WR WKH DWPRVSKHULF OLIHWLPH RI HDFK VXEVWDQFH (PLVVLRQ UDWH DQG UHVLGHQFH WLPHV IRU VRPH PRUH FRPSRXQGV KDYH EHHQOLVWHGLQ7DEOH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH(PLVVLRQUDWHVDQGUHVLGHQFHWLPHVIRUVRPH&)&V>@

7DEOH(PLVVLRQUDWHVDQGUHVLGHQFHWLPHVIRUVRPH&)&V>@

&)&V

(PLVVLRQUDWHîNJ

5HVLGHQFHWLPHGD\V

&)&V

(PLVVLRQUDWHîNJ

5HVLGHQFHWLPHGD\V

&)&O





&)&O





&)&O





&)&O





&)



±

&)



±

±



&+&O

±



&+&O &+&±&O





&+&±&O





&+&O





&+&O





&+&O





&+&O





&+&O





&+&O





,WLVFOHDUIURPWKLVWDEOHWKDW&)&KDVDOLIHWLPHRI\HDUVZKLOHWKDWRI &)&LV\HDUV+HQFHDQ\UHGXFWLRQLQWKHUHOHDVHRI&)&ZLOOQRWKDYH PXFKLPSDFWLQWKHLPPHGLDWHIXWXUH+RZHYHU+)&VWKDWGRQRWKDYHFKORULQH KDYHVKRUWHUDWPRVSKHULFWLPHV7KH\EUHDNGRZQHDVLO\EXWVWLOOKDYHVLJQLILFDQW SRWHQWLDOIRUJOREDOZDUPLQJ

,WLVFOHDUIURPWKLVWDEOHWKDW&)&KDVDOLIHWLPHRI\HDUVZKLOHWKDWRI &)&LV\HDUV+HQFHDQ\UHGXFWLRQLQWKHUHOHDVHRI&)&ZLOOQRWKDYH PXFKLPSDFWLQWKHLPPHGLDWHIXWXUH+RZHYHU+)&VWKDWGRQRWKDYHFKORULQH KDYHVKRUWHUDWPRVSKHULFWLPHV7KH\EUHDNGRZQHDVLO\EXWVWLOOKDYHVLJQLILFDQW SRWHQWLDOIRUJOREDOZDUPLQJ

 )8785($70263+(5,&&21&(175$7,2162)&)&V

 )8785($70263+(5,&&21&(175$7,2162)&)&V

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

PW

PR H W  W



ZKHUHPW LVWKHPDVVRI&)&DWWLPHWDIWHUHOLPLQDWLRQRIDOOHPLVVLRQVPR LVWKHLQLWLDOPDVVDQGWLVWKHDYHUDJHUHVLGHQFHWLPH :KHQWLVHTXDOWRWWKHUHVLGHQFHWLPHLV|RILWVLQLWLDOYDOXH+HQFH WKHUDWHRI&)&UHPRYDOLVJLYHQE\

GP GW

§  ·  PR H W  W ¨ ¸ © U ¹ P  W

PW

PR H W  W



ZKHUHPW LVWKHPDVVRI&)&DWWLPHWDIWHUHOLPLQDWLRQRIDOOHPLVVLRQVPR LVWKHLQLWLDOPDVVDQGWLVWKHDYHUDJHUHVLGHQFHWLPH :KHQWLVHTXDOWRWWKHUHVLGHQFHWLPHLV|RILWVLQLWLDOYDOXH+HQFH WKHUDWHRI&)&UHPRYDOLVJLYHQE\

GP GW

§  ·  PR H W  W ¨ ¸ © U ¹ P  W





 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH(PLVVLRQUDWHVDQGUHVLGHQFHWLPHVIRUVRPH&)&V>@

7DEOH(PLVVLRQUDWHVDQGUHVLGHQFHWLPHVIRUVRPH&)&V>@

&)&V

(PLVVLRQUDWHîNJ

5HVLGHQFHWLPHGD\V

&)&V

(PLVVLRQUDWHîNJ

5HVLGHQFHWLPHGD\V

&)&O





&)&O





&)&O





&)&O





&)



±

&)



±

±



&+&O

±



&+&±&O





&+&±&O





&+&O





&+&O





&+&O





&+&O





&+&O





&+&O





&+&O

,WLVFOHDUIURPWKLVWDEOHWKDW&)&KDVDOLIHWLPHRI\HDUVZKLOHWKDWRI &)&LV\HDUV+HQFHDQ\UHGXFWLRQLQWKHUHOHDVHRI&)&ZLOOQRWKDYH PXFKLPSDFWLQWKHLPPHGLDWHIXWXUH+RZHYHU+)&VWKDWGRQRWKDYHFKORULQH KDYHVKRUWHUDWPRVSKHULFWLPHV7KH\EUHDNGRZQHDVLO\EXWVWLOOKDYHVLJQLILFDQW SRWHQWLDOIRUJOREDOZDUPLQJ

,WLVFOHDUIURPWKLVWDEOHWKDW&)&KDVDOLIHWLPHRI\HDUVZKLOHWKDWRI &)&LV\HDUV+HQFHDQ\UHGXFWLRQLQWKHUHOHDVHRI&)&ZLOOQRWKDYH PXFKLPSDFWLQWKHLPPHGLDWHIXWXUH+RZHYHU+)&VWKDWGRQRWKDYHFKORULQH KDYHVKRUWHUDWPRVSKHULFWLPHV7KH\EUHDNGRZQHDVLO\EXWVWLOOKDYHVLJQLILFDQW SRWHQWLDOIRUJOREDOZDUPLQJ

 )8785($70263+(5,&&21&(175$7,2162)&)&V

 )8785($70263+(5,&&21&(175$7,2162)&)&V

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

PW

PR H W  W



ZKHUHPW LVWKHPDVVRI&)&DWWLPHWDIWHUHOLPLQDWLRQRIDOOHPLVVLRQVPR LVWKHLQLWLDOPDVVDQGWLVWKHDYHUDJHUHVLGHQFHWLPH :KHQWLVHTXDOWRWWKHUHVLGHQFHWLPHLV|RILWVLQLWLDOYDOXH+HQFH WKHUDWHRI&)&UHPRYDOLVJLYHQE\

GP GW

§  ·  PR H W  W ¨ ¸ © U ¹ P  W

PW



ZKHUHPW LVWKHPDVVRI&)&DWWLPHWDIWHUHOLPLQDWLRQRIDOOHPLVVLRQVPR LVWKHLQLWLDOPDVVDQGWLVWKHDYHUDJHUHVLGHQFHWLPH :KHQWLVHTXDOWRWWKHUHVLGHQFHWLPHLV|RILWVLQLWLDOYDOXH+HQFH WKHUDWHRI&)&UHPRYDOLVJLYHQE\

GP GW 

PR H W  W

§  ·  PR H W  W ¨ ¸ © U ¹ P  W



2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

(TXDWLRQVWDWHVWKDWWKHUHVLGHQFHWLPHLVWKHDPRXQWRIWKH&)&SUHVHQW GLYLGHGE\WKHUDWHRILWVUHPRYDO$VWHDG\VWDWHPRGHOIRU&)&VFDQEHDGRSWHG ZKHUHWKHUDWHRILQFUHDVHLQ&)&PDVVLVWKHDOJHEUDLFVXPRIWKHUDWHRI&)& DGGLWLRQPLQXVWKHUDWHRI&)&UHPRYDO /HWWKHDGGLWLRQRI&)&PDVVEHSJ\U 7KHQZHJHW

(TXDWLRQVWDWHVWKDWWKHUHVLGHQFHWLPHLVWKHDPRXQWRIWKH&)&SUHVHQW GLYLGHGE\WKHUDWHRILWVUHPRYDO$VWHDG\VWDWHPRGHOIRU&)&VFDQEHDGRSWHG ZKHUHWKHUDWHRILQFUHDVHLQ&)&PDVVLVWKHDOJHEUDLFVXPRIWKHUDWHRI&)& DGGLWLRQPLQXVWKHUDWHRI&)&UHPRYDO /HWWKHDGGLWLRQRI&)&PDVVEHSJ\U 7KHQZHJHW

GP GW

S

P U

,IWKHHPLVVLRQUDWHSLVFRQVWDQWWKHQZHFDQILQGWKHXOWLPDWHVWHDG\PDVVRI &)&E\VHWWLQJGPGW JLYLQJ

Pf

SW



PR H  W  W  Pf   H  W  W





&R H  W  W  &f   H  W  W



SJ  \U W\U u  u  P:

SW u  u   u  RU  SSE P:

PW

&f u P: W u  u 

 u  J  \U



&W



SW















PR H  W  W  Pf   H  W  W



&R H  W  W  &f   H  W  W

&RQFHQWUDWLRQVRIWKHWUDFHJDVHVDUHXVXDOO\H[SUHVVHGRQDYROXPHWULFEDVLV DVSSPRUSSE9ROXPHWULFXQLWVDUHLQGHSHQGHQWRIWKHWHPSHUDWXUHDQGSUHVVXUH $W673PROHRIJDVRFFXSLHVOLWUHV7KHPDVVRIWKHDWPRVSKHUHLV î NJDQGLWVGHQVLW\LVNJP±XQGHU673+HQFH& f LVJLYHQE\ &f



7KHFRQFHQWUDWLRQRI&)&ZRXOGHYHQWXDOO\UHDFKDYDOXHDOPRVWWLPHV PRUHWKDQWKHOHYHO 2QH FDQ HVWLPDWH WKH UDWH RI HPLVVLRQV UHTXLUHG WR PDLQWDLQ  SSE FRQFHQWUDWLRQE\UHDUUDQJLQJHTXDWLRQ

S



,Q WHUPV RI FRQFHQWUDWLRQV

6XSSRVH WKH HPLVVLRQ UDWH RI &)& LV  î  ± J\U DQG  FRQFHQWUDWLRQLVSSEDQGHPLVVLRQLVUHGXFHGE\WKHQZHJHW &f

Pf



&RQFHQWUDWLRQVRIWKHWUDFHJDVHVDUHXVXDOO\H[SUHVVHGRQDYROXPHWULFEDVLV DVSSPRUSSE9ROXPHWULFXQLWVDUHLQGHSHQGHQWRIWKHWHPSHUDWXUHDQGSUHVVXUH $W673PROHRIJDVRFFXSLHVOLWUHV7KHPDVVRIWKHDWPRVSKHUHLV î NJDQGLWVGHQVLW\LVNJP±XQGHU673+HQFH& f LVJLYHQE\ &f

P U

6LQFHSLVFRQVWDQWZHJHW

,Q WHUPV RI FRQFHQWUDWLRQV &W

S

,IWKHHPLVVLRQUDWHSLVFRQVWDQWWKHQZHFDQILQGWKHXOWLPDWHVWHDG\PDVVRI &)&E\VHWWLQJGPGW JLYLQJ



6LQFHSLVFRQVWDQWZHJHW PW

GP GW



SJ  \U W\U u  u  P:



6XSSRVH WKH HPLVVLRQ UDWH RI &)& LV  î  ± J\U DQG  FRQFHQWUDWLRQLVSSEDQGHPLVVLRQLVUHGXFHGE\WKHQZHJHW SW u  u   u  RU  SSE P:

&f



7KHFRQFHQWUDWLRQRI&)&ZRXOGHYHQWXDOO\UHDFKDYDOXHDOPRVWWLPHV PRUHWKDQWKHOHYHO 2QH FDQ HVWLPDWH WKH UDWH RI HPLVVLRQV UHTXLUHG WR PDLQWDLQ  SSE FRQFHQWUDWLRQE\UHDUUDQJLQJHTXDWLRQ

S



&f u P:

 u  J  \U

W u  u 



7KLVUHSUHVHQWVDZKRSSLQJUHGXFWLRQ3ORWWLQJSYHUVXV& f VKRZV WKDWHPLVVLRQVFRQWLQXHWRLQFUHDVHEH\RQG

7KLVUHSUHVHQWVDZKRSSLQJUHGXFWLRQ3ORWWLQJSYHUVXV& f VKRZV WKDWHPLVVLRQVFRQWLQXHWRLQFUHDVHEH\RQG

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

(TXDWLRQVWDWHVWKDWWKHUHVLGHQFHWLPHLVWKHDPRXQWRIWKH&)&SUHVHQW GLYLGHGE\WKHUDWHRILWVUHPRYDO$VWHDG\VWDWHPRGHOIRU&)&VFDQEHDGRSWHG ZKHUHWKHUDWHRILQFUHDVHLQ&)&PDVVLVWKHDOJHEUDLFVXPRIWKHUDWHRI&)& DGGLWLRQPLQXVWKHUDWHRI&)&UHPRYDO /HWWKHDGGLWLRQRI&)&PDVVEHSJ\U 7KHQZHJHW

(TXDWLRQVWDWHVWKDWWKHUHVLGHQFHWLPHLVWKHDPRXQWRIWKH&)&SUHVHQW GLYLGHGE\WKHUDWHRILWVUHPRYDO$VWHDG\VWDWHPRGHOIRU&)&VFDQEHDGRSWHG ZKHUHWKHUDWHRILQFUHDVHLQ&)&PDVVLVWKHDOJHEUDLFVXPRIWKHUDWHRI&)& DGGLWLRQPLQXVWKHUDWHRI&)&UHPRYDO /HWWKHDGGLWLRQRI&)&PDVVEHSJ\U 7KHQZHJHW

GP GW

S

P U

,IWKHHPLVVLRQUDWHSLVFRQVWDQWWKHQZHFDQILQGWKHXOWLPDWHVWHDG\PDVVRI &)&E\VHWWLQJGPGW JLYLQJ

Pf

SW



PR H  W  W  Pf   H  W  W





&R H  W  W  &f   H  W  W



SJ  \U W\U u  u  P:

SW u  u   u  RU  SSE P:

PW

&f u P: W u  u 



 u  J  \U

&W



SW















PR H  W  W  Pf   H  W  W





7KLVUHSUHVHQWVDZKRSSLQJUHGXFWLRQ3ORWWLQJSYHUVXV& f VKRZV WKDWHPLVVLRQVFRQWLQXHWRLQFUHDVHEH\RQG

&R H  W  W  &f   H  W  W

&RQFHQWUDWLRQVRIWKHWUDFHJDVHVDUHXVXDOO\H[SUHVVHGRQDYROXPHWULFEDVLV DVSSPRUSSE9ROXPHWULFXQLWVDUHLQGHSHQGHQWRIWKHWHPSHUDWXUHDQGSUHVVXUH $W673PROHRIJDVRFFXSLHVOLWUHV7KHPDVVRIWKHDWPRVSKHUHLV î NJDQGLWVGHQVLW\LVNJP±XQGHU673+HQFH& f LVJLYHQE\ &f



7KHFRQFHQWUDWLRQRI&)&ZRXOGHYHQWXDOO\UHDFKDYDOXHDOPRVWWLPHV PRUHWKDQWKHOHYHO 2QH FDQ HVWLPDWH WKH UDWH RI HPLVVLRQV UHTXLUHG WR PDLQWDLQ  SSE FRQFHQWUDWLRQE\UHDUUDQJLQJHTXDWLRQ

S



,Q WHUPV RI FRQFHQWUDWLRQV

6XSSRVH WKH HPLVVLRQ UDWH RI &)& LV  î  ± J\U DQG  FRQFHQWUDWLRQLVSSEDQGHPLVVLRQLVUHGXFHGE\WKHQZHJHW &f

Pf



&RQFHQWUDWLRQVRIWKHWUDFHJDVHVDUHXVXDOO\H[SUHVVHGRQDYROXPHWULFEDVLV DVSSPRUSSE9ROXPHWULFXQLWVDUHLQGHSHQGHQWRIWKHWHPSHUDWXUHDQGSUHVVXUH $W673PROHRIJDVRFFXSLHVOLWUHV7KHPDVVRIWKHDWPRVSKHUHLV î NJDQGLWVGHQVLW\LVNJP±XQGHU673+HQFH& f LVJLYHQE\ &f

P U

6LQFHSLVFRQVWDQWZHJHW

,Q WHUPV RI FRQFHQWUDWLRQV &W

S

,IWKHHPLVVLRQUDWHSLVFRQVWDQWWKHQZHFDQILQGWKHXOWLPDWHVWHDG\PDVVRI &)&E\VHWWLQJGPGW JLYLQJ



6LQFHSLVFRQVWDQWZHJHW PW

GP GW



SJ  \U W\U u  u  P:



6XSSRVH WKH HPLVVLRQ UDWH RI &)& LV  î  ± J\U DQG  FRQFHQWUDWLRQLVSSEDQGHPLVVLRQLVUHGXFHGE\WKHQZHJHW SW u  u   u  RU  SSE P:

&f



7KHFRQFHQWUDWLRQRI&)&ZRXOGHYHQWXDOO\UHDFKDYDOXHDOPRVWWLPHV PRUHWKDQWKHOHYHO 2QH FDQ HVWLPDWH WKH UDWH RI HPLVVLRQV UHTXLUHG WR PDLQWDLQ  SSE FRQFHQWUDWLRQE\UHDUUDQJLQJHTXDWLRQ

S

&f u P: W u  u 



 u  J  \U



7KLVUHSUHVHQWVDZKRSSLQJUHGXFWLRQ3ORWWLQJSYHUVXV& f VKRZV WKDWHPLVVLRQVFRQWLQXHWRLQFUHDVHEH\RQG

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

0RGHOSUHGLFWLRQVRIR]RQHFROXPQFKDQJHVKDYHYDULHGZLGHO\GXULQJWKH ODVW WHQ \HDUV ,I &)& HPLVVLRQV FRQWLQXH DW WKH  UDWHV D VWHDG\VWDWH FRQFHQWUDWLRQ RI  SSE FKORULQH ZRXOG EH REWDLQHG 7KLV ZRXOG FRUUHVSRQG WR ±GHFUHDVHGHSHQGLQJRQWKHPRGHOXVHG $OOWKHFXUUHQWPRGHOVSUHGLFWWKDWDPDMRUGHFUHDVHLQR]RQHFRQFHQWUDWLRQ RFFXUVDWDQDOWLWXGHRINPLQWKHXSSHUVWUDWRVSKHUH$GRXEOLQJRISSERI FKORULQH FDXVHV ± GHFUHDVH LQ WKH R]RQH FRQFHQWUDWLRQ 7KLV QRQOLQHDULW\ IRUODUJHFKORULQHSHUWXUEDWLRQZLOOKDYHVLJQLILFDQWLPSOLFDWLRQVIRUWKHLQWHUSUHWDWLRQ RI &)& HPLVVLRQV 7KH WRWDO DWPRVSKHULF FRQFHQWUDWLRQV RI RUJDQRFKORULQH FRPSRXQGVKDYHLQFUHDVHGIURPSSELQWRSSELQDQGSSE LQ7KHFXUUHQWUDWHRILQFUHDVHH[FHHGVSSESHUGHFDGH

0RGHOSUHGLFWLRQVRIR]RQHFROXPQFKDQJHVKDYHYDULHGZLGHO\GXULQJWKH ODVW WHQ \HDUV ,I &)& HPLVVLRQV FRQWLQXH DW WKH  UDWHV D VWHDG\VWDWH FRQFHQWUDWLRQ RI  SSE FKORULQH ZRXOG EH REWDLQHG 7KLV ZRXOG FRUUHVSRQG WR ±GHFUHDVHGHSHQGLQJRQWKHPRGHOXVHG $OOWKHFXUUHQWPRGHOVSUHGLFWWKDWDPDMRUGHFUHDVHLQR]RQHFRQFHQWUDWLRQ RFFXUVDWDQDOWLWXGHRINPLQWKHXSSHUVWUDWRVSKHUH$GRXEOLQJRISSERI FKORULQH FDXVHV ± GHFUHDVH LQ WKH R]RQH FRQFHQWUDWLRQ 7KLV QRQOLQHDULW\ IRUODUJHFKORULQHSHUWXUEDWLRQZLOOKDYHVLJQLILFDQWLPSOLFDWLRQVIRUWKHLQWHUSUHWDWLRQ RI &)& HPLVVLRQV 7KH WRWDO DWPRVSKHULF FRQFHQWUDWLRQV RI RUJDQRFKORULQH FRPSRXQGVKDYHLQFUHDVHGIURPSSELQWRSSELQDQGSSE LQ7KHFXUUHQWUDWHRILQFUHDVHH[FHHGVSSESHUGHFDGH

 0(&+$1,60 2) &)& '(*5$'$7,21

 0(&+$1,60 2) &)& '(*5$'$7,21

)UHRQVDEVRUEXOWUDYLROHWUDGLDWLRQDQGGLVVRFLDWHWRJHQHUDWHFKORULQHLRQVDFFRUGLQJ WRWKHUHDFWLRQ

)UHRQVDEVRUEXOWUDYLROHWUDGLDWLRQDQGGLVVRFLDWHWRJHQHUDWHFKORULQHLRQVDFFRUGLQJ WRWKHUHDFWLRQ

KQ &)&O  o &)&O  &O



KQ &)&O  o &)&O  &O



7KH GLVVRFLDWHG FKORULQH LRQ IXUWKHU UHDFWV ZLWK R]RQH WR SURGXFH FKORULQH PRQR[LGHDQGR[\JHQ

7KH GLVVRFLDWHG FKORULQH LRQ IXUWKHU UHDFWV ZLWK R]RQH WR SURGXFH FKORULQH PRQR[LGHDQGR[\JHQ

&O  2 o &O2  2

&O  2 o &O2  2



&KORULQHPRQR[LGHIXUWKHUUHDFWVZLWKDQRWKHUPROHFXOHRIR]RQHWRIRUPFKORULQH GLR[LGHDQGR[\JHQ &O2  2 o &O2   2 



&KORULQHGLR[LGHLVQRWVWDEOHHLWKHU,WDEVRUEV89UDGLDWLRQDJDLQWRSURGXFH FKORULQHDQGR[\JHQ 89 UDGLDWLRQ &O2  o &O  2





&KORULQHPRQR[LGHIXUWKHUUHDFWVZLWKDQRWKHUPROHFXOHRIR]RQHWRIRUPFKORULQH GLR[LGHDQGR[\JHQ &O2  2 o &O2   2 



&KORULQHGLR[LGHLVQRWVWDEOHHLWKHU,WDEVRUEV89UDGLDWLRQDJDLQWRSURGXFH FKORULQHDQGR[\JHQ 89 UDGLDWLRQ &O2  o &O  2



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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

0RGHOSUHGLFWLRQVRIR]RQHFROXPQFKDQJHVKDYHYDULHGZLGHO\GXULQJWKH ODVW WHQ \HDUV ,I &)& HPLVVLRQV FRQWLQXH DW WKH  UDWHV D VWHDG\VWDWH FRQFHQWUDWLRQ RI  SSE FKORULQH ZRXOG EH REWDLQHG 7KLV ZRXOG FRUUHVSRQG WR ±GHFUHDVHGHSHQGLQJRQWKHPRGHOXVHG $OOWKHFXUUHQWPRGHOVSUHGLFWWKDWDPDMRUGHFUHDVHLQR]RQHFRQFHQWUDWLRQ RFFXUVDWDQDOWLWXGHRINPLQWKHXSSHUVWUDWRVSKHUH$GRXEOLQJRISSERI FKORULQH FDXVHV ± GHFUHDVH LQ WKH R]RQH FRQFHQWUDWLRQ 7KLV QRQOLQHDULW\ IRUODUJHFKORULQHSHUWXUEDWLRQZLOOKDYHVLJQLILFDQWLPSOLFDWLRQVIRUWKHLQWHUSUHWDWLRQ RI &)& HPLVVLRQV 7KH WRWDO DWPRVSKHULF FRQFHQWUDWLRQV RI RUJDQRFKORULQH FRPSRXQGVKDYHLQFUHDVHGIURPSSELQWRSSELQDQGSSE LQ7KHFXUUHQWUDWHRILQFUHDVHH[FHHGVSSESHUGHFDGH

0RGHOSUHGLFWLRQVRIR]RQHFROXPQFKDQJHVKDYHYDULHGZLGHO\GXULQJWKH ODVW WHQ \HDUV ,I &)& HPLVVLRQV FRQWLQXH DW WKH  UDWHV D VWHDG\VWDWH FRQFHQWUDWLRQ RI  SSE FKORULQH ZRXOG EH REWDLQHG 7KLV ZRXOG FRUUHVSRQG WR ±GHFUHDVHGHSHQGLQJRQWKHPRGHOXVHG $OOWKHFXUUHQWPRGHOVSUHGLFWWKDWDPDMRUGHFUHDVHLQR]RQHFRQFHQWUDWLRQ RFFXUVDWDQDOWLWXGHRINPLQWKHXSSHUVWUDWRVSKHUH$GRXEOLQJRISSERI FKORULQH FDXVHV ± GHFUHDVH LQ WKH R]RQH FRQFHQWUDWLRQ 7KLV QRQOLQHDULW\ IRUODUJHFKORULQHSHUWXUEDWLRQZLOOKDYHVLJQLILFDQWLPSOLFDWLRQVIRUWKHLQWHUSUHWDWLRQ RI &)& HPLVVLRQV 7KH WRWDO DWPRVSKHULF FRQFHQWUDWLRQV RI RUJDQRFKORULQH FRPSRXQGVKDYHLQFUHDVHGIURPSSELQWRSSELQDQGSSE LQ7KHFXUUHQWUDWHRILQFUHDVHH[FHHGVSSESHUGHFDGH

 0(&+$1,60 2) &)& '(*5$'$7,21

 0(&+$1,60 2) &)& '(*5$'$7,21

)UHRQVDEVRUEXOWUDYLROHWUDGLDWLRQDQGGLVVRFLDWHWRJHQHUDWHFKORULQHLRQVDFFRUGLQJ WRWKHUHDFWLRQ

)UHRQVDEVRUEXOWUDYLROHWUDGLDWLRQDQGGLVVRFLDWHWRJHQHUDWHFKORULQHLRQVDFFRUGLQJ WRWKHUHDFWLRQ

KQ &)&O  o &)&O  &O



KQ &)&O  o &)&O  &O



7KH GLVVRFLDWHG FKORULQH LRQ IXUWKHU UHDFWV ZLWK R]RQH WR SURGXFH FKORULQH PRQR[LGHDQGR[\JHQ

7KH GLVVRFLDWHG FKORULQH LRQ IXUWKHU UHDFWV ZLWK R]RQH WR SURGXFH FKORULQH PRQR[LGHDQGR[\JHQ

&O  2 o &O2  2

&O  2 o &O2  2



&KORULQHPRQR[LGHIXUWKHUUHDFWVZLWKDQRWKHUPROHFXOHRIR]RQHWRIRUPFKORULQH GLR[LGHDQGR[\JHQ &O2  2 o &O2   2 



&KORULQHGLR[LGHLVQRWVWDEOHHLWKHU,WDEVRUEV89UDGLDWLRQDJDLQWRSURGXFH FKORULQHDQGR[\JHQ 89 UDGLDWLRQ &O2  o &O  2



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



&KORULQHPRQR[LGHIXUWKHUUHDFWVZLWKDQRWKHUPROHFXOHRIR]RQHWRIRUPFKORULQH GLR[LGHDQGR[\JHQ &O2  2 o &O2   2 



&KORULQHGLR[LGHLVQRWVWDEOHHLWKHU,WDEVRUEV89UDGLDWLRQDJDLQWRSURGXFH FKORULQHDQGR[\JHQ 89 UDGLDWLRQ &O2  o &O  2



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

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH  Solar UV radiation down to 180 m Slow transport removes O3

Solar UV radiation down to 180 m

Photodissociation of CFCs produces CI, CIO

Slow transport removes O3

Dissociation of N2O produces NO

Photolysis of O2 Slow rt initiates formation spo tc. of CF transport Stratopause tran No, e of O3 Cs an w o l O S I, CI dNO Bulk of 2 of C CFCs stored Stratosphere Removal of C here irc HCl, HNO3 etc. of ulati CFC CF on in precipitation rele N Cs ase 2O s Tropopause UV down to 290 nm

50 km

Ozone layer 25-km 10-15 km

O ns N 2 sio is

Troposphere

em

O ns N 2 sio is

Earth’s surface

Photodissociation of CFCs produces CI, CIO

Dissociation of N2O produces NO Photolysis of O2 50 km Slow ort tc. initiates formation tr p a s n sport n of CF Stratopause e a , r t o of O3 Cs an N Slow I, CIO dNO Bulk of 2 of C Ozone CFCs stored Stratosphere Removal of C layer here i r c HCl, HNO3 etc. of ulati CFC 25-km C o in precipitation n F rele N Cs ase 2O s Tropopause UV down 10-15 km to 290 nm

em

Troposphere

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

Earth’s surface

)LJ3KRWRGLVVRFLDWLRQRI&)0V

)LJ3KRWRGLVVRFLDWLRQRI&)0V

UHDFWV ZLWK QLWURJHQ GLR[LGH WR SURGXFH D UHODWLYHO\ LQHUW PROHFXOH RI FKORULQH QLWUDWH

UHDFWV ZLWK QLWURJHQ GLR[LGH WR SURGXFH D UHODWLYHO\ LQHUW PROHFXOH RI FKORULQH QLWUDWH

&O2  12  o &O212 

&O2  12  o &O212 





%HLQJLQHUWDQGKHOGDVDFRPSRXQGRIFKORULQHLWLVXQDEOHWRGHVWUR\R]RQH RQ LWV RZQ +RZHYHU LQ WKH $QWDUFWLF ZLQWHU D XQLTXH DWPRVSKHULF FRQGLWLRQ NQRZQDVSRODUYRUWH[WUDSVWKHDLUDERYHDQGFUHDWHVFRQGLWLRQVIRUWKHHYHQWXDO UHOHDVHRIFKORULQH7KHSRODUYRUWH[HIIHFWLYHO\EORFNVWKHZDUPHUPLGODWLWXGHDLU IURPPL[LQJZLWKWKHDLUDERYHWKHSROHFUHDWLQJH[WUHPHO\FROGSRODUWHPSHUDWXUHV 7KHUHIRUH VWUDWRVSKHULF WHPSHUDWXUHV PD\ IDOO EHORZ ±R& WR IRUP SRODU VWUDWRVSKHULFFORXGVHYHQWKRXJKWKHDLULVYHU\GU\7KHLFHFU\VWDOVIRUPHGLQWKH FORXGVSURYLGHDQLGHDOVXUIDFHIRUWKHUHDFWLRQ

%HLQJLQHUWDQGKHOGDVDFRPSRXQGRIFKORULQHLWLVXQDEOHWRGHVWUR\R]RQH RQ LWV RZQ +RZHYHU LQ WKH $QWDUFWLF ZLQWHU D XQLTXH DWPRVSKHULF FRQGLWLRQ NQRZQDVSRODUYRUWH[WUDSVWKHDLUDERYHDQGFUHDWHVFRQGLWLRQVIRUWKHHYHQWXDO UHOHDVHRIFKORULQH7KHSRODUYRUWH[HIIHFWLYHO\EORFNVWKHZDUPHUPLGODWLWXGHDLU IURPPL[LQJZLWKWKHDLUDERYHWKHSROHFUHDWLQJH[WUHPHO\FROGSRODUWHPSHUDWXUHV 7KHUHIRUH VWUDWRVSKHULF WHPSHUDWXUHV PD\ IDOO EHORZ ±R& WR IRUP SRODU VWUDWRVSKHULFFORXGVHYHQWKRXJKWKHDLULVYHU\GU\7KHLFHFU\VWDOVIRUPHGLQWKH FORXGVSURYLGHDQLGHDOVXUIDFHIRUWKHUHDFWLRQ

+  2  &O212  o +2&O  +12 

+  2  &O212  o +2&O  +12 





+2&OIXUWKHUXQGHUJRHVSKRWRGLVVRFLDWLRQWRSURGXFHDFKORULQHDWRPDQGDQ2+ UDGLFDO

+2&OIXUWKHUXQGHUJRHVSKRWRGLVVRFLDWLRQWRSURGXFHDFKORULQHDWRPDQGDQ2+ UDGLFDO

+2&O  KQ o &O  2‡ +

+2&O  KQ o &O  2‡ +





7KLVFKORULQHDWRPFDQLQLWLDWHDFKDLQUHDFWLRQDVGHVFULEHGHDUOLHU7KH2+ UDGLFDODOVRWDNHVSDUWLQWKHR]RQHGHVWUXFWLRQDFFRUGLQJWRWKHUHDFWLRQ

7KLVFKORULQHDWRPFDQLQLWLDWHDFKDLQUHDFWLRQDVGHVFULEHGHDUOLHU7KH2+ UDGLFDODOVRWDNHVSDUWLQWKHR]RQHGHVWUXFWLRQDFFRUGLQJWRWKHUHDFWLRQ

2‡ + 2 o +2  2 

2‡ + 2 o +2  2 



$JDLQ&O2DQG2+FDQUHDFWZLWKHDFKRWKHUWRIRUP+2&ODQGR[\JHQ

$JDLQ&O2DQG2+FDQUHDFWZLWKHDFKRWKHUWRIRUP+2&ODQGR[\JHQ

&O2  +2  o +2&O  2 



&O2  +2  o +2&O  2 



+2&O  KQ o &O  2 



+2&O  KQ o &O  2 



7KHQHWUHVXOWRIWKLVUHDFWLRQLVWKHIRUPDWLRQRIR[\JHQ

7KHQHWUHVXOWRIWKLVUHDFWLRQLVWKHIRUPDWLRQRIR[\JHQ

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH  Solar UV radiation down to 180 m Slow transport removes O3

Stratosphere

Tropopause

Solar UV radiation down to 180 m Slow transport removes O3

Dissociation of N2O produces NO

Slow of CF transport Cs an dNO Bulk of 2 CFCs stored Removal of Cir here c HCl, HNO3 etc. of ulati CFC CF on in precipitation rele N Cs ase 2O s

Stratosphere

25-km 10-15 km

Tropopause

Slow of CF transport Cs an dNO Bulk of 2 CFCs stored Removal of Cir here c HCl, HNO3 etc. of ulati CFC CF on in precipitation rele N Cs ase 2O s

Earth’s surface

50 km

Ozone layer 25-km 10-15 km

O ns N 2 sio is

Troposphere

UV down to 290 nm

Dissociation of N2O produces NO

em

O ns N 2 sio is

Earth’s surface

Stratopause

Ozone layer

Photodissociation of CFCs produces CI, CIO

Photolysis of O2 rt initiates formation spo tc. tran No, e of O3 w o l O I S I, C of C

50 km

em

Troposphere

UV down to 290 nm

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

Photodissociation of CFCs produces CI, CIO

Photolysis of O2 rt initiates formation spo tc. tran No, e of O3 w o l O I S I, C of C

Stratopause



)LJ3KRWRGLVVRFLDWLRQRI&)0V

)LJ3KRWRGLVVRFLDWLRQRI&)0V

UHDFWV ZLWK QLWURJHQ GLR[LGH WR SURGXFH D UHODWLYHO\ LQHUW PROHFXOH RI FKORULQH QLWUDWH

UHDFWV ZLWK QLWURJHQ GLR[LGH WR SURGXFH D UHODWLYHO\ LQHUW PROHFXOH RI FKORULQH QLWUDWH

&O2  12  o &O212 

&O2  12  o &O212 





%HLQJLQHUWDQGKHOGDVDFRPSRXQGRIFKORULQHLWLVXQDEOHWRGHVWUR\R]RQH RQ LWV RZQ +RZHYHU LQ WKH $QWDUFWLF ZLQWHU D XQLTXH DWPRVSKHULF FRQGLWLRQ NQRZQDVSRODUYRUWH[WUDSVWKHDLUDERYHDQGFUHDWHVFRQGLWLRQVIRUWKHHYHQWXDO UHOHDVHRIFKORULQH7KHSRODUYRUWH[HIIHFWLYHO\EORFNVWKHZDUPHUPLGODWLWXGHDLU IURPPL[LQJZLWKWKHDLUDERYHWKHSROHFUHDWLQJH[WUHPHO\FROGSRODUWHPSHUDWXUHV 7KHUHIRUH VWUDWRVSKHULF WHPSHUDWXUHV PD\ IDOO EHORZ ±R& WR IRUP SRODU VWUDWRVSKHULFFORXGVHYHQWKRXJKWKHDLULVYHU\GU\7KHLFHFU\VWDOVIRUPHGLQWKH FORXGVSURYLGHDQLGHDOVXUIDFHIRUWKHUHDFWLRQ

%HLQJLQHUWDQGKHOGDVDFRPSRXQGRIFKORULQHLWLVXQDEOHWRGHVWUR\R]RQH RQ LWV RZQ +RZHYHU LQ WKH $QWDUFWLF ZLQWHU D XQLTXH DWPRVSKHULF FRQGLWLRQ NQRZQDVSRODUYRUWH[WUDSVWKHDLUDERYHDQGFUHDWHVFRQGLWLRQVIRUWKHHYHQWXDO UHOHDVHRIFKORULQH7KHSRODUYRUWH[HIIHFWLYHO\EORFNVWKHZDUPHUPLGODWLWXGHDLU IURPPL[LQJZLWKWKHDLUDERYHWKHSROHFUHDWLQJH[WUHPHO\FROGSRODUWHPSHUDWXUHV 7KHUHIRUH VWUDWRVSKHULF WHPSHUDWXUHV PD\ IDOO EHORZ ±R& WR IRUP SRODU VWUDWRVSKHULFFORXGVHYHQWKRXJKWKHDLULVYHU\GU\7KHLFHFU\VWDOVIRUPHGLQWKH FORXGVSURYLGHDQLGHDOVXUIDFHIRUWKHUHDFWLRQ

+  2  &O212  o +2&O  +12 

+  2  &O212  o +2&O  +12 





+2&OIXUWKHUXQGHUJRHVSKRWRGLVVRFLDWLRQWRSURGXFHDFKORULQHDWRPDQGDQ2+ UDGLFDO

+2&OIXUWKHUXQGHUJRHVSKRWRGLVVRFLDWLRQWRSURGXFHDFKORULQHDWRPDQGDQ2+ UDGLFDO

+2&O  KQ o &O  2‡ +

+2&O  KQ o &O  2‡ +





7KLVFKORULQHDWRPFDQLQLWLDWHDFKDLQUHDFWLRQDVGHVFULEHGHDUOLHU7KH2+ UDGLFDODOVRWDNHVSDUWLQWKHR]RQHGHVWUXFWLRQDFFRUGLQJWRWKHUHDFWLRQ

7KLVFKORULQHDWRPFDQLQLWLDWHDFKDLQUHDFWLRQDVGHVFULEHGHDUOLHU7KH2+ UDGLFDODOVRWDNHVSDUWLQWKHR]RQHGHVWUXFWLRQDFFRUGLQJWRWKHUHDFWLRQ

2‡ + 2 o +2  2 

2‡ + 2 o +2  2 



$JDLQ&O2DQG2+FDQUHDFWZLWKHDFKRWKHUWRIRUP+2&ODQGR[\JHQ



$JDLQ&O2DQG2+FDQUHDFWZLWKHDFKRWKHUWRIRUP+2&ODQGR[\JHQ

&O2  +2  o +2&O  2 



&O2  +2  o +2&O  2 



+2&O  KQ o &O  2 



+2&O  KQ o &O  2 



7KHQHWUHVXOWRIWKLVUHDFWLRQLVWKHIRUPDWLRQRIR[\JHQ

7KHQHWUHVXOWRIWKLVUHDFWLRQLVWKHIRUPDWLRQRIR[\JHQ

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

2  o 2 

2  o 2 



7KHGHVWUXFWLRQRIR]RQHSURFHHGVDVGHVFULEHGKHUHXQWLOQLWULFDFLGLVIRUPHG DVSHUHTXDWLRQ3KRWRO\WLFSURGXFWLRQRIQLWULFDFLGGRHVQRWEHJLQZLWKWKH ILUVWUD\VRIVXQOLJKWDVWKHUHTXLUHGZDYHOHQJWKVDUHQRWUHDGLO\DYDLODEOHQHDUWKH KRUL]RQLQWKHILUVWZHHNVRI$QWDUFWLFVSULQJ(YHQWXDOO\KRZHYHUWKHSKRWRO\VLV SURFHHGVFUHDWLQJ12WKDWWLHVXSFKORULQHVWRSSLQJWKHR]RQHGHVWUXFWLRQ7KH UHDFWLRQVFKHPHRXWOLQHGDERYHDORQJZLWKRWKHUDWPRVSKHULFUHDFWLRQVDUHNQRZQ DV³&KDSPDQUHDFWLRQV´DQGSLFWRULDOO\GHSLFWHGLQ)LJ

7KHGHVWUXFWLRQRIR]RQHSURFHHGVDVGHVFULEHGKHUHXQWLOQLWULFDFLGLVIRUPHG DVSHUHTXDWLRQ3KRWRO\WLFSURGXFWLRQRIQLWULFDFLGGRHVQRWEHJLQZLWKWKH ILUVWUD\VRIVXQOLJKWDVWKHUHTXLUHGZDYHOHQJWKVDUHQRWUHDGLO\DYDLODEOHQHDUWKH KRUL]RQLQWKHILUVWZHHNVRI$QWDUFWLFVSULQJ(YHQWXDOO\KRZHYHUWKHSKRWRO\VLV SURFHHGVFUHDWLQJ12WKDWWLHVXSFKORULQHVWRSSLQJWKHR]RQHGHVWUXFWLRQ7KH UHDFWLRQVFKHPHRXWOLQHGDERYHDORQJZLWKRWKHUDWPRVSKHULFUHDFWLRQVDUHNQRZQ DV³&KDSPDQUHDFWLRQV´DQGSLFWRULDOO\GHSLFWHGLQ)LJ

own U.V. d nm 0 to 18

own U.V. d nm 0 to 18

O2

use

opa

t Stra

O+O 2 O+O 3 e

her

osp

t Stra

p Tro

opa

p Tro

osp

h

ere

O+O O3 O 2+O 2

UV 1 O( D)

N2

O+NO 2 O3 +NO O+O

3

N 2O NO 1 O( D)

Slow transport

ne Ozo r laye use



NO +O 2 O2 +NO 2 2 O2 +O 2 NO OH.M 2 HNO

3

HNO in ra 3 Remo va in

NO2, N2

O+O 2 O+O 3

t

10

l

po Tro

–1

NO

s pau

p Tro

5k m

e

osp

h

ere

O+O O3 O 2+O 2

UV 1 O( D)

N2

O+NO 2 O3 +NO O+O

3

N 2O NO 1 O( D)

Slow transport

ne Ozo r laye

tos Stra

Slo tran w spo r

HNO

O2

use

opa

t Stra

re phe

3

Rapid circulation

own U.V. d nm 0 to 30

50 km

NO +O 2 O2 +NO 2 2 O2 +O 2 NO OH.M 2 HNO

3

Slo tran w spo r

HNO

Rapid circulation

own U.V. d nm 0 to 30

50 km

3

HNO in ra 3 Remo val in

NO2, N2

t

10

–1

NO

3

5k m

3

0k

0k

m

m

)LJ&KDSPDQUHDFWLRQVFKHPH

)LJ&KDSPDQUHDFWLRQVFKHPH

 ())(&72)*5((1+286(*$6(6212=21(&21&(175$7,21

 ())(&72)*5((1+286(*$6(6212=21(&21&(175$7,21

7KH&KDSPDQUHDFWLRQVUHSUHVHQWRQO\DVPDOOIUDFWLRQRIWKHYDULRXVSURFHVVHV WDNLQJ SODFH LQ WKH VWUDWRVSKHUH $FWXDO\ PRUH WKDQ  VWUDWRVSKHULF UHDFWLRQV RFFXULQWKHVWUDWRVSKHUH2WKHUJUHHQKRXVHJDVHVDOVRSOD\DQLPSRUWDQWUROHLQ WKHR]RQHF\FOH)RUH[DPSOHDVPDOODPRXQWRIPHWKDQHUHOHDVHGDWWKHHDUWK¶V VXUIDFH GLIIXVHV LQWR WKH VWUDWRVSKHUH DQG UHDFWV ZLWK D FKORULQH DWRP WR IRUP K\GURFKORULFDFLGDFFRUGLQJWRWKHUHDFWLRQ

7KH&KDSPDQUHDFWLRQVUHSUHVHQWRQO\DVPDOOIUDFWLRQRIWKHYDULRXVSURFHVVHV WDNLQJ SODFH LQ WKH VWUDWRVSKHUH $FWXDO\ PRUH WKDQ  VWUDWRVSKHULF UHDFWLRQV RFFXULQWKHVWUDWRVSKHUH2WKHUJUHHQKRXVHJDVHVDOVRSOD\DQLPSRUWDQWUROHLQ WKHR]RQHF\FOH)RUH[DPSOHDVPDOODPRXQWRIPHWKDQHUHOHDVHGDWWKHHDUWK¶V VXUIDFH GLIIXVHV LQWR WKH VWUDWRVSKHUH DQG UHDFWV ZLWK D FKORULQH DWRP WR IRUP K\GURFKORULFDFLGDFFRUGLQJWRWKHUHDFWLRQ

&+   &O o &+   +&O

&+   &O o &+   +&O





3DUWRIWKHK\GURFKORULFDFLGUHDFWVZLWKDQ2+UDGLFDOWRIRUPFKORULQHDWRP

3DUWRIWKHK\GURFKORULFDFLGUHDFWVZLWKDQ2+UDGLFDOWRIRUPFKORULQHDWRP

 o + 2  &O +&O 2+ 

 o + 2  &O +&O 2+ 





%XWDODUJHSDUWRI+&OEHLQJKHDYLHUGLIIXVHVWKURXJKWKHWURSRSDXVHLQWRWKH WURSRVSKHUHDQGSUHFLSLWDWHVDVK\GURFKORULFDFLG7KXVPHWKDQHDFWVDVDVLQN IRUFKORULQHDWRP'HFUHDVHGFKORULQHFRQFHQWUDWLRQUHVXOWVLQOHVVR]RQHGHSOHWLRQ 0HWKDQH DOVR FRQWULEXWHV WR WKH SURGXFWLRQ RI R]RQH YLD &+ 2+±12[ FKHPLVWU\,QWKHWURSRVSKHUHPHWKDQHLVR[LGL]HGE\2+WRIRUPSHUR[LGH

%XWDODUJHSDUWRI+&OEHLQJKHDYLHUGLIIXVHVWKURXJKWKHWURSRSDXVHLQWRWKH WURSRVSKHUHDQGSUHFLSLWDWHVDVK\GURFKORULFDFLG7KXVPHWKDQHDFWVDVDVLQN IRUFKORULQHDWRP'HFUHDVHGFKORULQHFRQFHQWUDWLRQUHVXOWVLQOHVVR]RQHGHSOHWLRQ 0HWKDQH DOVR FRQWULEXWHV WR WKH SURGXFWLRQ RI R]RQH YLD &+ 2+±12[ FKHPLVWU\,QWKHWURSRVSKHUHPHWKDQHLVR[LGL]HGE\2+WRIRUPSHUR[LGH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

2  o 2 

2  o 2 



7KHGHVWUXFWLRQRIR]RQHSURFHHGVDVGHVFULEHGKHUHXQWLOQLWULFDFLGLVIRUPHG DVSHUHTXDWLRQ3KRWRO\WLFSURGXFWLRQRIQLWULFDFLGGRHVQRWEHJLQZLWKWKH ILUVWUD\VRIVXQOLJKWDVWKHUHTXLUHGZDYHOHQJWKVDUHQRWUHDGLO\DYDLODEOHQHDUWKH KRUL]RQLQWKHILUVWZHHNVRI$QWDUFWLFVSULQJ(YHQWXDOO\KRZHYHUWKHSKRWRO\VLV SURFHHGVFUHDWLQJ12WKDWWLHVXSFKORULQHVWRSSLQJWKHR]RQHGHVWUXFWLRQ7KH UHDFWLRQVFKHPHRXWOLQHGDERYHDORQJZLWKRWKHUDWPRVSKHULFUHDFWLRQVDUHNQRZQ DV³&KDSPDQUHDFWLRQV´DQGSLFWRULDOO\GHSLFWHGLQ)LJ

7KHGHVWUXFWLRQRIR]RQHSURFHHGVDVGHVFULEHGKHUHXQWLOQLWULFDFLGLVIRUPHG DVSHUHTXDWLRQ3KRWRO\WLFSURGXFWLRQRIQLWULFDFLGGRHVQRWEHJLQZLWKWKH ILUVWUD\VRIVXQOLJKWDVWKHUHTXLUHGZDYHOHQJWKVDUHQRWUHDGLO\DYDLODEOHQHDUWKH KRUL]RQLQWKHILUVWZHHNVRI$QWDUFWLFVSULQJ(YHQWXDOO\KRZHYHUWKHSKRWRO\VLV SURFHHGVFUHDWLQJ12WKDWWLHVXSFKORULQHVWRSSLQJWKHR]RQHGHVWUXFWLRQ7KH UHDFWLRQVFKHPHRXWOLQHGDERYHDORQJZLWKRWKHUDWPRVSKHULFUHDFWLRQVDUHNQRZQ DV³&KDSPDQUHDFWLRQV´DQGSLFWRULDOO\GHSLFWHGLQ)LJ

own U.V. d nm 0 to 18

own U.V. d nm 0 to 18

O2

use

opa

t Stra

O+O 2 O+O 3 e her

p Tro

opa

p Tro

use

osp

e her

O+O O3 O 2+O 2

UV 1 O( D)

N2

O+NO 2 O3 +NO O+O

N 2O NO 1 O( D)

Slow transport

ne Ozo r laye

osp

t Stra



own U.V. d nm 0 to 30

3

50 km

Rapid circulation NO2, N2

3

O+O 2 O+O 3

rt

l

10

po Tro

–1

NO

5k m

s pau

p Tro

e

osp

e her

O+O O3 O 2+O 2

UV 1 O( D)

N2

O+NO 2 O3 +NO O+O

N 2O NO 1 O( D)

Slow transport

ne Ozo r laye

tos Stra

Slo tran w spo

HNO in ra 3 Remo va in

aus top Stra

re phe

3

HNO

O2

e

NO +O 2 O2 +NO 2 2 O2 +O 2 NO OH.M 2 HNO

own U.V. d nm 0 to 30

3

NO +O 2 O2 +NO 2 2 O2 +O 2 NO OH.M 2 HNO

50 km

3

Rapid circulation NO2, N2

HNO

3

Slo tran w spo r

HNO in ra 3 Remo val in

t

10

–1

NO

3

5k m

3

0k

0k

m

m

)LJ&KDSPDQUHDFWLRQVFKHPH

)LJ&KDSPDQUHDFWLRQVFKHPH

 ())(&72)*5((1+286(*$6(6212=21(&21&(175$7,21

 ())(&72)*5((1+286(*$6(6212=21(&21&(175$7,21

7KH&KDSPDQUHDFWLRQVUHSUHVHQWRQO\DVPDOOIUDFWLRQRIWKHYDULRXVSURFHVVHV WDNLQJ SODFH LQ WKH VWUDWRVSKHUH $FWXDO\ PRUH WKDQ  VWUDWRVSKHULF UHDFWLRQV RFFXULQWKHVWUDWRVSKHUH2WKHUJUHHQKRXVHJDVHVDOVRSOD\DQLPSRUWDQWUROHLQ WKHR]RQHF\FOH)RUH[DPSOHDVPDOODPRXQWRIPHWKDQHUHOHDVHGDWWKHHDUWK¶V VXUIDFH GLIIXVHV LQWR WKH VWUDWRVSKHUH DQG UHDFWV ZLWK D FKORULQH DWRP WR IRUP K\GURFKORULFDFLGDFFRUGLQJWRWKHUHDFWLRQ

7KH&KDSPDQUHDFWLRQVUHSUHVHQWRQO\DVPDOOIUDFWLRQRIWKHYDULRXVSURFHVVHV WDNLQJ SODFH LQ WKH VWUDWRVSKHUH $FWXDO\ PRUH WKDQ  VWUDWRVSKHULF UHDFWLRQV RFFXULQWKHVWUDWRVSKHUH2WKHUJUHHQKRXVHJDVHVDOVRSOD\DQLPSRUWDQWUROHLQ WKHR]RQHF\FOH)RUH[DPSOHDVPDOODPRXQWRIPHWKDQHUHOHDVHGDWWKHHDUWK¶V VXUIDFH GLIIXVHV LQWR WKH VWUDWRVSKHUH DQG UHDFWV ZLWK D FKORULQH DWRP WR IRUP K\GURFKORULFDFLGDFFRUGLQJWRWKHUHDFWLRQ

&+   &O o &+   +&O



&+   &O o &+   +&O



3DUWRIWKHK\GURFKORULFDFLGUHDFWVZLWKDQ2+UDGLFDOWRIRUPFKORULQHDWRP

3DUWRIWKHK\GURFKORULFDFLGUHDFWVZLWKDQ2+UDGLFDOWRIRUPFKORULQHDWRP

 o + 2  &O +&O 2+ 

 o + 2  &O +&O 2+ 



%XWDODUJHSDUWRI+&OEHLQJKHDYLHUGLIIXVHVWKURXJKWKHWURSRSDXVHLQWRWKH WURSRVSKHUHDQGSUHFLSLWDWHVDVK\GURFKORULFDFLG7KXVPHWKDQHDFWVDVDVLQN IRUFKORULQHDWRP'HFUHDVHGFKORULQHFRQFHQWUDWLRQUHVXOWVLQOHVVR]RQHGHSOHWLRQ 0HWKDQH DOVR FRQWULEXWHV WR WKH SURGXFWLRQ RI R]RQH YLD &+ 2+±12[ FKHPLVWU\,QWKHWURSRVSKHUHPHWKDQHLVR[LGL]HGE\2+WRIRUPSHUR[LGH



%XWDODUJHSDUWRI+&OEHLQJKHDYLHUGLIIXVHVWKURXJKWKHWURSRSDXVHLQWRWKH WURSRVSKHUHDQGSUHFLSLWDWHVDVK\GURFKORULFDFLG7KXVPHWKDQHDFWVDVDVLQN IRUFKORULQHDWRP'HFUHDVHGFKORULQHFRQFHQWUDWLRQUHVXOWVLQOHVVR]RQHGHSOHWLRQ 0HWKDQH DOVR FRQWULEXWHV WR WKH SURGXFWLRQ RI R]RQH YLD &+ 2+±12[ FKHPLVWU\,QWKHWURSRVSKHUHPHWKDQHLVR[LGL]HGE\2+WRIRUPSHUR[LGH

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

 + 2 &+   2+ o &+  



 + 2 &+   2+ o &+  



  2 o &+ 2  2  &+   



  2 o &+ 2  2  &+   



7KHIDWHRIWKHSHUR[\UDGLFDOGHSHQGVRQWKHDPELHQWFRQFHQWUDWLRQRIQLWULFDFLG

7KHIDWHRIWKHSHUR[\UDGLFDOGHSHQGVRQWKHDPELHQWFRQFHQWUDWLRQRIQLWULFDFLG

  12 o &+ 2  &+2    12 



  12 o &+ 2  &+2    12 



  2 o +&+2  +2 &+2  



  2 o +&+2  +2 &+2  



+2VRSURGXFHGR[LGL]HVDQRWKHUPROHFXOHRIQLWULFR[LGHWRQLWURJHQGLR[LGH

+2VRSURGXFHGR[LGL]HVDQRWKHUPROHFXOHRIQLWULFR[LGHWRQLWURJHQGLR[LGH

+2   12 o +2  12 



+2   12 o +2  12 



12   KY  2  o 12  2 



12   KY  2  o 12  2 



7KXVWKHSURGXFWVRIWKHVHUHDFWLRQVDUHIRUPDOGHK\GH+&+2 DQGR]RQH ,IWKH12OHYHOLVORZHTXDWLRQSURFHHGVYHU\VORZO\,QWKDWFDVHEHIRUH 12UHDFWVZLWKWKHSHUR[\UDGLFDO+2ZLOOUHDFWDFFRUGLQJWR &+ 2   +2  o &+  22+  2 



 ,Q WKLV FDVH R]RQH LV QRW IRUPHG DV LQ WKH R[LGDWLRQ SURGXFW RI PHWKDQH 6LQFHERWKWKHVHUHDFWLRQVFRPSHWHZLWKHDFKRWKHUZHFDQZULWH

>&+2 @> 12@ . > 12@

.  >&+2  @>2+ @ . >2 +@ .



 u 

&+ 2   +2  o &+  22+  2 

>&+2 @> 12@ . > 12@

 u   u  PROHFXOHV FP   SSW

.  >&+2  @>2+ @ . >2 +@ .

 

,QVHUWLQJ WKH YDOXHV RI . DQG . DQG WDNLQJ +2 FRQFHQWUDWLRQ DV î PROHFXOHVFP±12FRQFHQWUDWLRQFDQEHFDOFXODWHG

> 12@

ª u  º ¬ ¼



 ,Q WKLV FDVH R]RQH LV QRW IRUPHG DV LQ WKH R[LGDWLRQ SURGXFW RI PHWKDQH 6LQFHERWKWKHVHUHDFWLRQVFRPSHWHZLWKHDFKRWKHUZHFDQZULWH



,QVHUWLQJ WKH YDOXHV RI . DQG . DQG WDNLQJ +2 FRQFHQWUDWLRQ DV î PROHFXOHVFP±12FRQFHQWUDWLRQFDQEHFDOFXODWHG

> 12@

7KXVWKHSURGXFWVRIWKHVHUHDFWLRQVDUHIRUPDOGHK\GH+&+2 DQGR]RQH ,IWKH12OHYHOLVORZHTXDWLRQSURFHHGVYHU\VORZO\,QWKDWFDVHEHIRUH 12UHDFWVZLWKWKHSHUR[\UDGLFDO+2ZLOOUHDFWDFFRUGLQJWR

 u 

ª u  º ¼  u  ¬  u  PROHFXOHV FP   SSW

7KLVLVDUHDOLVWLFILJXUHDQGKHQFHRQHFDQH[SHFWWKHIRUPDWLRQRIK\GUR SHUR[LGHVLI12OHYHOVDUHYHU\ORZ $VH[SODLQHGHDUOLHUWKHHIIHFWRI12[HPLVVLRQVRQWKHR]RQHFRQFHQWUDWLRQV GHSHQGVFULWLFDOO\RQWKHDOWLWXGHRIHPLVVLRQV,QMHFWLRQLQPLGDQGXSSHUVWUDWRVSKHUH ZLOOOHDGWRQHWR]RQHGHVWUXFWLRQ

7KLVLVDUHDOLVWLFILJXUHDQGKHQFHRQHFDQH[SHFWWKHIRUPDWLRQRIK\GUR SHUR[LGHVLI12OHYHOVDUHYHU\ORZ $VH[SODLQHGHDUOLHUWKHHIIHFWRI12[HPLVVLRQVRQWKHR]RQHFRQFHQWUDWLRQV GHSHQGVFULWLFDOO\RQWKHDOWLWXGHRIHPLVVLRQV,QMHFWLRQLQPLGDQGXSSHUVWUDWRVSKHUH ZLOOOHDGWRQHWR]RQHGHVWUXFWLRQ

12  2 o 12   2  

12  2 o 12   2  

.  u  FP PROHFXOH  VHF 



2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

.  u  FP PROHFXOH  VHF 



2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

 + 2 &+   2+ o &+  



 + 2 &+   2+ o &+  



  2 o &+ 2  2  &+   



  2 o &+ 2  2  &+   



7KHIDWHRIWKHSHUR[\UDGLFDOGHSHQGVRQWKHDPELHQWFRQFHQWUDWLRQRIQLWULFDFLG

7KHIDWHRIWKHSHUR[\UDGLFDOGHSHQGVRQWKHDPELHQWFRQFHQWUDWLRQRIQLWULFDFLG

  12 o &+ 2  &+2    12 



  12 o &+ 2  &+2    12 



  2 o +&+2  +2 &+2  



  2 o +&+2  +2 &+2  



+2VRSURGXFHGR[LGL]HVDQRWKHUPROHFXOHRIQLWULFR[LGHWRQLWURJHQGLR[LGH

+2VRSURGXFHGR[LGL]HVDQRWKHUPROHFXOHRIQLWULFR[LGHWRQLWURJHQGLR[LGH

+2   12 o +2  12 



+2   12 o +2  12 



12   KY  2  o 12  2 



12   KY  2  o 12  2 



7KXVWKHSURGXFWVRIWKHVHUHDFWLRQVDUHIRUPDOGHK\GH+&+2 DQGR]RQH ,IWKH12OHYHOLVORZHTXDWLRQSURFHHGVYHU\VORZO\,QWKDWFDVHEHIRUH 12UHDFWVZLWKWKHSHUR[\UDGLFDO+2ZLOOUHDFWDFFRUGLQJWR &+ 2   +2  o &+  22+  2 



 ,Q WKLV FDVH R]RQH LV QRW IRUPHG DV LQ WKH R[LGDWLRQ SURGXFW RI PHWKDQH 6LQFHERWKWKHVHUHDFWLRQVFRPSHWHZLWKHDFKRWKHUZHFDQZULWH

>&+2 @> 12@ . > 12@

.  >&+2  @>2+ @ . >2 +@ .



&+ 2   +2  o &+  22+  2 

 u  ª  u  º¼  u  ¬  u  PROHFXOHV FP 

>&+2 @> 12@ . > 12@

.  >&+2  @>2+ @ . >2 +@ .

 

,QVHUWLQJ WKH YDOXHV RI . DQG . DQG WDNLQJ +2 FRQFHQWUDWLRQ DV î PROHFXOHVFP±12FRQFHQWUDWLRQFDQEHFDOFXODWHG

> 12@

 SSW



 ,Q WKLV FDVH R]RQH LV QRW IRUPHG DV LQ WKH R[LGDWLRQ SURGXFW RI PHWKDQH 6LQFHERWKWKHVHUHDFWLRQVFRPSHWHZLWKHDFKRWKHUZHFDQZULWH



,QVHUWLQJ WKH YDOXHV RI . DQG . DQG WDNLQJ +2 FRQFHQWUDWLRQ DV î PROHFXOHVFP±12FRQFHQWUDWLRQFDQEHFDOFXODWHG

> 12@

7KXVWKHSURGXFWVRIWKHVHUHDFWLRQVDUHIRUPDOGHK\GH+&+2 DQGR]RQH ,IWKH12OHYHOLVORZHTXDWLRQSURFHHGVYHU\VORZO\,QWKDWFDVHEHIRUH 12UHDFWVZLWKWKHSHUR[\UDGLFDO+2ZLOOUHDFWDFFRUGLQJWR

 u  ª  u  º¼  u  ¬  u  PROHFXOHV FP   SSW

7KLVLVDUHDOLVWLFILJXUHDQGKHQFHRQHFDQH[SHFWWKHIRUPDWLRQRIK\GUR SHUR[LGHVLI12OHYHOVDUHYHU\ORZ $VH[SODLQHGHDUOLHUWKHHIIHFWRI12[HPLVVLRQVRQWKHR]RQHFRQFHQWUDWLRQV GHSHQGVFULWLFDOO\RQWKHDOWLWXGHRIHPLVVLRQV,QMHFWLRQLQPLGDQGXSSHUVWUDWRVSKHUH ZLOOOHDGWRQHWR]RQHGHVWUXFWLRQ

7KLVLVDUHDOLVWLFILJXUHDQGKHQFHRQHFDQH[SHFWWKHIRUPDWLRQRIK\GUR SHUR[LGHVLI12OHYHOVDUHYHU\ORZ $VH[SODLQHGHDUOLHUWKHHIIHFWRI12[HPLVVLRQVRQWKHR]RQHFRQFHQWUDWLRQV GHSHQGVFULWLFDOO\RQWKHDOWLWXGHRIHPLVVLRQV,QMHFWLRQLQPLGDQGXSSHUVWUDWRVSKHUH ZLOOOHDGWRQHWR]RQHGHVWUXFWLRQ

12  2 o 12   2  

12  2 o 12   2  

.  u  FP PROHFXOH  VHF 



.  u  FP PROHFXOH  VHF 



 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

12  2 o 12  2

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV 

7KHQHWUHDFWLRQLV

12  2 o 12  2



2  2 o 2 



7KHQHWUHDFWLRQLV 2  2 o 2 



+RZHYHULI12LVLQMHFWHGLQWRWKHORZHUVWUDWRVSKHUHRUXSSHUWURSRVSKHUH DQHWLQFUHDVHLQR]RQHLVSUHGLFWHGDFFRUGLQJWRWKHIROORZLQJUHDFWLRQV

+RZHYHULI12LVLQMHFWHGLQWRWKHORZHUVWUDWRVSKHUHRUXSSHUWURSRVSKHUH DQHWLQFUHDVHLQR]RQHLVSUHGLFWHGDFFRUGLQJWRWKHIROORZLQJUHDFWLRQV

12  KQ o 12  2



12  KQ o 12  2



0 2  2  o 2



0 2  2  o 2



&DUERQGLR[LGHDOVRLQWHUDFWVLQ+2[±12[±&O2[F\FOHVWKURXJKLWVHIIHFWRQ WKHUDGLDWLRQEDODQFH$OWKRXJK&2ZDUPVWKHWURSRVSKHUHE\DEVRUSWLRQRILQIUDUHG UDGLDWLRQ LW KDV DQ H[DFWO\ RSSRVLWH HIIHFW LQ VWUDWRVSKHUH 7KH FRROLQJ HIIHFW DOWHUVWKHUDWHVRIFKHPLFDOUHDFWLRQVLQWKHVWUDWRVSKHUH7KHQHWHIIHFWRI&2 LQFUHDVH LV DQ LQFUHDVH LQ WKH 2 FRQFHQWUDWLRQ +RZHYHU WKH DEVRUSWLRQ RI HOHFWURPDJQHWLFUDGLDWLRQLQWKHVWUDWRVSKHUHSURGXFHVKHDW7KLVPD\RIIVHWWKH FRROLQJHIIHFWWRVRPHH[WHQW

&DUERQGLR[LGHDOVRLQWHUDFWVLQ+2[±12[±&O2[F\FOHVWKURXJKLWVHIIHFWRQ WKHUDGLDWLRQEDODQFH$OWKRXJK&2ZDUPVWKHWURSRVSKHUHE\DEVRUSWLRQRILQIUDUHG UDGLDWLRQ LW KDV DQ H[DFWO\ RSSRVLWH HIIHFW LQ VWUDWRVSKHUH 7KH FRROLQJ HIIHFW DOWHUVWKHUDWHVRIFKHPLFDOUHDFWLRQVLQWKHVWUDWRVSKHUH7KHQHWHIIHFWRI&2 LQFUHDVH LV DQ LQFUHDVH LQ WKH 2 FRQFHQWUDWLRQ +RZHYHU WKH DEVRUSWLRQ RI HOHFWURPDJQHWLFUDGLDWLRQLQWKHVWUDWRVSKHUHSURGXFHVKHDW7KLVPD\RIIVHWWKH FRROLQJHIIHFWWRVRPHH[WHQW

 27+(5+$/2*(1&203281'6

 27+(5+$/2*(1&203281'6

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îFP±FRQFHQWUDWLRQVLQ WKHWURSRVSKHUHDQGUHGXFHVWKHLUPHDQOLIHWLPHWR\HDU,QWKHVWUDWRVSKHUHLW

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îFP±FRQFHQWUDWLRQVLQ WKHWURSRVSKHUHDQGUHGXFHVWKHLUPHDQOLIHWLPHWR\HDU,QWKHVWUDWRVSKHUHLW

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

12  2 o 12  2



7KHQHWUHDFWLRQLV

12  2 o 12  2



2  2 o 2 



7KHQHWUHDFWLRQLV 2  2 o 2 



+RZHYHULI12LVLQMHFWHGLQWRWKHORZHUVWUDWRVSKHUHRUXSSHUWURSRVSKHUH DQHWLQFUHDVHLQR]RQHLVSUHGLFWHGDFFRUGLQJWRWKHIROORZLQJUHDFWLRQV

+RZHYHULI12LVLQMHFWHGLQWRWKHORZHUVWUDWRVSKHUHRUXSSHUWURSRVSKHUH DQHWLQFUHDVHLQR]RQHLVSUHGLFWHGDFFRUGLQJWRWKHIROORZLQJUHDFWLRQV

12  KQ o 12  2



12  KQ o 12  2



0 2  2  o 2



0 2  2  o 2



&DUERQGLR[LGHDOVRLQWHUDFWVLQ+2[±12[±&O2[F\FOHVWKURXJKLWVHIIHFWRQ WKHUDGLDWLRQEDODQFH$OWKRXJK&2ZDUPVWKHWURSRVSKHUHE\DEVRUSWLRQRILQIUDUHG UDGLDWLRQ LW KDV DQ H[DFWO\ RSSRVLWH HIIHFW LQ VWUDWRVSKHUH 7KH FRROLQJ HIIHFW DOWHUVWKHUDWHVRIFKHPLFDOUHDFWLRQVLQWKHVWUDWRVSKHUH7KHQHWHIIHFWRI&2 LQFUHDVH LV DQ LQFUHDVH LQ WKH 2 FRQFHQWUDWLRQ +RZHYHU WKH DEVRUSWLRQ RI HOHFWURPDJQHWLFUDGLDWLRQLQWKHVWUDWRVSKHUHSURGXFHVKHDW7KLVPD\RIIVHWWKH FRROLQJHIIHFWWRVRPHH[WHQW

&DUERQGLR[LGHDOVRLQWHUDFWVLQ+2[±12[±&O2[F\FOHVWKURXJKLWVHIIHFWRQ WKHUDGLDWLRQEDODQFH$OWKRXJK&2ZDUPVWKHWURSRVSKHUHE\DEVRUSWLRQRILQIUDUHG UDGLDWLRQ LW KDV DQ H[DFWO\ RSSRVLWH HIIHFW LQ VWUDWRVSKHUH 7KH FRROLQJ HIIHFW DOWHUVWKHUDWHVRIFKHPLFDOUHDFWLRQVLQWKHVWUDWRVSKHUH7KHQHWHIIHFWRI&2 LQFUHDVH LV DQ LQFUHDVH LQ WKH 2 FRQFHQWUDWLRQ +RZHYHU WKH DEVRUSWLRQ RI HOHFWURPDJQHWLFUDGLDWLRQLQWKHVWUDWRVSKHUHSURGXFHVKHDW7KLVPD\RIIVHWWKH FRROLQJHIIHFWWRVRPHH[WHQW

 27+(5+$/2*(1&203281'6

 27+(5+$/2*(1&203281'6

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îFP±FRQFHQWUDWLRQVLQ WKHWURSRVSKHUHDQGUHGXFHVWKHLUPHDQOLIHWLPHWR\HDU,QWKHVWUDWRVSKHUHLW

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îFP±FRQFHQWUDWLRQVLQ WKHWURSRVSKHUHDQGUHGXFHVWKHLUPHDQOLIHWLPHWR\HDU,QWKHVWUDWRVSKHUHLW

22 2 &+ 2+ +2 +2 +20 2+2 2+2 +22 2+2 &2+

+22 +2+2 2+ +22 +2&+ +22 12 12 122 122 122 122

o o o o o o o o o o o

o o o o o o o o o o o o

+2+2 +22+ +2KQ 2+2+ 2+&+ 2+2+ 2' 12 2' 12 122 122 12KQ 122

(± H[S±7

(± (± H[S±7 (± H[S±7 (± (± (± H[S±7 (±

(± H[S7 (± (± (± (± (± H[S7 (± (± (± H[S±7 (± H[S±7 (± >0@(± H[S ±7 (± H[S7 (± H[S± H[S±7

+22 +2+2 2+ +22 +2&+ +22 12 12 122 122 122 122

o o o o o o o o o o o o

+2+2 +22+ +2KQ 2+2+ 2+&+ 2+2+ 2' 12 2' 12 122 122 12KQ 122

(± H[S±7

(± (± H[S±7 (± H[S±7 (± (± (± H[S±7 (±

&O212KQ o &O212 &O2122 o &O212 (± H[S±7 &+&O o &++&O (± H[S±7 +&O o ++&O (± H[S7 2++&O o +2&O (± H[S±7 +2&O o 2+&O (± +12+2DQG+&ODUHUHPRYHGIURPWKHPRGHOWURSRVSKHUHZLWKDWLPH FRQVWDQW RI  GD\V

&+o+2LQVWDQWDQHRXV 12 oD 12 2DQGoE 122 ZLWKD E      LQVWDQWDQHRXV 1%(±  î±

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

o o o o o o o o o o o

(± H[S±7

(± (± H[S±7 (± H[S±7 (± (± (± H[S±7 (±

122+(± +120 $QDVWDVL HW DO  122+ +212 (± 12 %DVHGRQ&LHVOLNDQG 1LFROHW 12 (± H[S7 122 (± H[S±7 122 (± H[S±7 &O &O &O2&O (± &O2&O ± &O22 (± H[S±7 &O2 (± H[S±7 &O12 (± H[S7 &O2120 %DVHGRQ=HOOQHU

+2+2 +22+ +2KQ 2+2+ 2+&+ 2+2+ 2' 12 2' 12 122 122 12KQ 122

2' 2 2' +2 2' &+ 2' + 2+2 +20 +22 +20 2+2 +22 &22+

22 2' 1

o o o o o o o o o o o o

o o o o o o o o o o o

+22 +2+2 2+ +22 +2&+ +22 12 12 122 122 122 122

22 2 &+ 2+ +2 +2 +20 2+2 2+2 +22 2+2 &2+

(± H[S±7

(± (± H[S±7 (± H[S±7 (± (± (± H[S±7 (±

(± H[S7 (± (± (± (± (± H[S7 (± (± (± H[S±7 (± H[S±7 (± >0@(± H[S ±7 (± H[S7 (± H[S± H[S±7

o o o o o o o o o o o

122+(± +120 $QDVWDVL HW DO  122+ +212 (± 12 %DVHGRQ&LHVOLNDQG 1LFROHW 12 (± H[S7 122 (± H[S±7 122 (± H[S±7 &O &O &O2&O (± &O2&O ± &O22 (± H[S±7 &O2 (± H[S±7 &O12 (± H[S7 &O2120 %DVHGRQ=HOOQHU &O212KQ o &O212 &O2122 o &O212 (± H[S±7 &+&O o &++&O (± H[S±7 +&O o ++&O (± H[S7 2++&O o +2&O (± H[S±7 +2&O o 2+&O (± +12+2DQG+&ODUHUHPRYHGIURPWKHPRGHOWURSRVSKHUHZLWKDWLPH FRQVWDQW RI  GD\V

&+o+2LQVWDQWDQHRXV 12 oD 12 2DQGoE 122 ZLWKD E      LQVWDQWDQHRXV 1%(±  î±

112 12 12 &)&OKQ &)&OKQ &)&O2' &)&O2' &O2 &O22 &O212 &O2120

+212 122+0 1+2KQ +122+ 12KQ

o o o o o

22 20 22 2' 2  21

o o o o o o

2KQ 220 2KQ

(± H[S7 O!c Oc (± H[S±7 (± H[S7

o o o o o o o o o o o

o o o o o

&O212KQ o &O212 &O2122 o &O212 (± H[S±7 &+&O o &++&O (± H[S±7 +&O o ++&O (± H[S7 2++&O o +2&O (± H[S±7 +2&O o 2+&O (± +12+2DQG+&ODUHUHPRYHGIURPWKHPRGHOWURSRVSKHUHZLWKDWLPH FRQVWDQW RI  GD\V

&+o+2LQVWDQWDQHRXV 12 oD 12 2DQGoE 122 ZLWKD E      LQVWDQWDQHRXV 1%(±  î±

112 12 12 &)&OKQ &)&OKQ &)&O2' &)&O2' &O2 &O22 &O212 &O2120

+212 122+0 1+2KQ +122+ 12KQ

­ °° ® ° °¯

112 12 12 &)&OKQ &)&OKQ &)&O2' &)&O2' &O2 &O22 &O212 &O2120

+22 +2+2 2+ +22 +2&+ +22 12 12 122 122 122 122

o o o o o o o o o o o o

+2+2 +22+ +2KQ 2+2+ 2+&+ 2+2+ 2' 12 2' 12 122 122 12KQ 122

(± H[S7 (± (± (± (± (± H[S7 (± (± (± H[S±7 (± H[S±7 (± >0@(± H[S ±7 (± H[S7 (± H[S± H[S±7

(± H[S7 O!c Oc (± H[S±7 (± H[S7

7DEOH$WPRVSKHULFUHDFWLRQVLQFOXGLQJ2+DQG&)&V

22 2 &+ 2+ +2 +2 +20 2+2 2+2 +22 2+2 &2+

22 20 22 2' 2  21

o o o o o o o o o o o

o o o o o o

2' 2 2' +2 2' &+ 2' + 2+2 +20 +22 +20 2+2 +22 &22+

22 2' 1

2KQ 220 2KQ

­ °° ® ° °¯

(± H[S7 (± (± (± (± (± H[S7 (± (± (± H[S±7 (± H[S±7 (± >0@(± H[S ±7 (± H[S7 (± H[S± H[S±7

22 2 &+ 2+ +2 +2 +20 2+2 2+2 +22 2+2 &2+

o o o o o o o o o o o

2' 2 2' +2 2' &+ 2' + 2+2 +20 +22 +20 2+2 +22 &22+

22 2' 1

122+(± +120 $QDVWDVL HW DO  122+ +212 (± 12 %DVHGRQ&LHVOLNDQG 1LFROHW 12 (± H[S7 122 (± H[S±7 122 (± H[S±7 &O &O &O2&O (± &O2&O ± &O22 (± H[S±7 &O2 (± H[S±7 &O12 (± H[S7 &O2120 %DVHGRQ=HOOQHU

o o o o o

22 20 22 2' 2  21

+212 122+0 1+2KQ +122+ 12KQ

­ °° ® ° °¯

o o o o o o

(± H[S7 O!c Oc (± H[S±7 (± H[S7

o o o o o o o o o o o

122+(± +120 $QDVWDVL HW DO  122+ +212 (± 12 %DVHGRQ&LHVOLNDQG 1LFROHW 12 (± H[S7 122 (± H[S±7 122 (± H[S±7 &O &O &O2&O (± &O2&O ± &O22 (± H[S±7 &O2 (± H[S±7 &O12 (± H[S7 &O2120 %DVHGRQ=HOOQHU

&O212KQ o &O212 &O2122 o &O212 (± H[S±7 &+&O o &++&O (± H[S±7 +&O o ++&O (± H[S7 2++&O o +2&O (± H[S±7 +2&O o 2+&O (± +12+2DQG+&ODUHUHPRYHGIURPWKHPRGHOWURSRVSKHUHZLWKDWLPH FRQVWDQW RI  GD\V

&+o+2LQVWDQWDQHRXV 12 oD 12 2DQGoE 122 ZLWKD E      LQVWDQWDQHRXV 1%(±  î±

112 12 12 &)&OKQ &)&OKQ &)&O2' &)&O2' &O2 &O22 &O212 &O2120

o o o o o

­ °° ® ° °¯

2KQ 220 2KQ

7DEOH$WPRVSKHULFUHDFWLRQVLQFOXGLQJ2+DQG&)&V

22 2' 1

2' 2 2' +2 2' &+ 2' + 2+2 +20 +22 +20 2+2 +22 &22+

­ °° ® ° °¯

+212 122+0 1+2KQ +122+ 12KQ

­ °° ® ° °¯

22 20 22 2' 2  21

­ °° ® ° °¯

o o o o o o

7DEOH$WPRVSKHULFUHDFWLRQVLQFOXGLQJ2+DQG&)&V

­ °° ® ° °¯

2KQ 220 2KQ

(± H[S7 O!c Oc (± H[S±7 (± H[S7

7DEOH$WPRVSKHULFUHDFWLRQVLQFOXGLQJ2+DQG&)&V

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH  2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

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

%U  2 o %U2  2



%U  2 o %U2  2



%U2  2 o %U  2 



%U2  2 o %U  2 



%U2  &O2 o %U  &O  2 



%U2  &O2 o %U  &O  2 



7KHUHIRUH&O2[±%U2[LQWHUDFWLRQZLOODOVROHDGWRHQKDQFHGR]RQHGHVWUXFWLRQLQ WKH ORZHU VWUDWRVSKHUH

7KHUHIRUH&O2[±%U2[LQWHUDFWLRQZLOODOVROHDGWRHQKDQFHGR]RQHGHVWUXFWLRQLQ WKH ORZHU VWUDWRVSKHUH

 352%,1* 7+( 2=21( /$@

 ())(&72)2=21('(3/(7,21

 ())(&72)2=21('(3/(7,21

(IIHFWRQ89IOX[

(IIHFWRQ89IOX[

7KHELRORJLFDOUHVSRQVHRILQFUHDVLQJ89%UDGLDWLRQDULVLQJRXWRIR]RQHGHSOHWLRQ LVEHVWUHSUHVHQWHGE\D'1$DFWLRQVSHFWUXPDVVKRZQLQ)LJ

7KHELRORJLFDOUHVSRQVHRILQFUHDVLQJ89%UDGLDWLRQDULVLQJRXWRIR]RQHGHSOHWLRQ LVEHVWUHSUHVHQWHGE\D'1$DFWLRQVSHFWUXPDVVKRZQLQ)LJ

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

0

Global ozone depletion (%)

Global ozone depletion (%)

0

–10

80% reduction

–20

No growth 1.2 % growth –30

2.5% growth

–10

80% reduction

–20

No growth 1.2 % growth –30

2.5% growth

X 3.8% growth

X 3.8% growth

5.0% growth

–40

–50 1985

2005

5.0% growth

–40

2025

2065

2045

–50 1985

2085

2005

2025

Year

)LJ3UHGLFWHGJOREDOR]RQHGHSOHWLRQVFHQDULRV

0

10

DNA action spectrum 10-2

10

-4

10-5

UV-A

UV-B 280

300

320

2085

)LJ3UHGLFWHGJOREDOR]RQHGHSOHWLRQVFHQDULRV

Biological sensitivity (relative values)

Biological sensitivity (relative values)

10

2065

2045 Year

340

360

380

0

DNA action spectrum 10-2

10

-4

10-5

400

UV-A

UV-B 280

300

320

Wavelength (nm)

340

360

380

400

Wavelength (nm)

)LJ5HVSRQVHRI'1$WR89%DQG89$

)LJ5HVSRQVHRI'1$WR89%DQG89$

89LQGXFHG'1$GDPDJHLVPDLQO\RIWZRW\SHV%HQLJQFDQFHUUHIHUUHGDV QRQPHODQRPDVNLQFDQFHUDQGDPRUHVHULRXVOLIHWKUHDWHQLQJPDOLJQDQWPHODQRPD 7KH IRUPHU LV PRUH SUHYDOHQW DPRQJ SHRSOH ZLWK IDLU FRPSOH[LRQ H[SRVHG WR VXQOLJKW ,W FDXVHV GLVILJXUHPHQW &XUUHQWO\ PRUH WKDQ  QHZ FDVHV RI QRQPHODQRPDVNLQFDQFHUDUHEHLQJUHSRUWHGHYHU\\HDUZRUOGZLGH $WKLJKHUODWLWXGHVWKHUHLVOHVVVXUIDFHOHYHO89%DQGDWHDFKRLQFUHDVHLQ ODWLWXGHVNLQFDQFHUUDWHVLQFUHDVHE\DIDFWRURI7KXVIRUHYHU\GHFUHDVH

89LQGXFHG'1$GDPDJHLVPDLQO\RIWZRW\SHV%HQLJQFDQFHUUHIHUUHGDV QRQPHODQRPDVNLQFDQFHUDQGDPRUHVHULRXVOLIHWKUHDWHQLQJPDOLJQDQWPHODQRPD 7KH IRUPHU LV PRUH SUHYDOHQW DPRQJ SHRSOH ZLWK IDLU FRPSOH[LRQ H[SRVHG WR VXQOLJKW ,W FDXVHV GLVILJXUHPHQW &XUUHQWO\ PRUH WKDQ  QHZ FDVHV RI QRQPHODQRPDVNLQFDQFHUDUHEHLQJUHSRUWHGHYHU\\HDUZRUOGZLGH $WKLJKHUODWLWXGHVWKHUHLVOHVVVXUIDFHOHYHO89%DQGDWHDFKRLQFUHDVHLQ ODWLWXGHVNLQFDQFHUUDWHVLQFUHDVHE\DIDFWRURI7KXVIRUHYHU\GHFUHDVH

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

0

Global ozone depletion (%)

Global ozone depletion (%)

0

–10

80% reduction

–20

No growth 1.2 % growth –30

2.5% growth

–10

80% reduction

–20

No growth 1.2 % growth –30

2.5% growth

X 3.8% growth

X 3.8% growth

5.0% growth

–40

–50 1985

2005

5.0% growth

–40

2025

2065

2045

–50 1985

2085

2005

2025

Year

)LJ3UHGLFWHGJOREDOR]RQHGHSOHWLRQVFHQDULRV

0

10

DNA action spectrum 10-2

10

-4

10-5

UV-A

UV-B 280

300

320

340

2085

)LJ3UHGLFWHGJOREDOR]RQHGHSOHWLRQVFHQDULRV

Biological sensitivity (relative values)

Biological sensitivity (relative values)

10

2065

2045 Year

360

380

400

Wavelength (nm)

0

DNA action spectrum 10-2

10

-4

10-5

UV-A

UV-B 280

300

320

340

360

380

400

Wavelength (nm)

)LJ5HVSRQVHRI'1$WR89%DQG89$

)LJ5HVSRQVHRI'1$WR89%DQG89$

89LQGXFHG'1$GDPDJHLVPDLQO\RIWZRW\SHV%HQLJQFDQFHUUHIHUUHGDV QRQPHODQRPDVNLQFDQFHUDQGDPRUHVHULRXVOLIHWKUHDWHQLQJPDOLJQDQWPHODQRPD 7KH IRUPHU LV PRUH SUHYDOHQW DPRQJ SHRSOH ZLWK IDLU FRPSOH[LRQ H[SRVHG WR VXQOLJKW ,W FDXVHV GLVILJXUHPHQW &XUUHQWO\ PRUH WKDQ  QHZ FDVHV RI QRQPHODQRPDVNLQFDQFHUDUHEHLQJUHSRUWHGHYHU\\HDUZRUOGZLGH $WKLJKHUODWLWXGHVWKHUHLVOHVVVXUIDFHOHYHO89%DQGDWHDFKRLQFUHDVHLQ ODWLWXGHVNLQFDQFHUUDWHVLQFUHDVHE\DIDFWRURI7KXVIRUHYHU\GHFUHDVH

89LQGXFHG'1$GDPDJHLVPDLQO\RIWZRW\SHV%HQLJQFDQFHUUHIHUUHGDV QRQPHODQRPDVNLQFDQFHUDQGDPRUHVHULRXVOLIHWKUHDWHQLQJPDOLJQDQWPHODQRPD 7KH IRUPHU LV PRUH SUHYDOHQW DPRQJ SHRSOH ZLWK IDLU FRPSOH[LRQ H[SRVHG WR VXQOLJKW ,W FDXVHV GLVILJXUHPHQW &XUUHQWO\ PRUH WKDQ  QHZ FDVHV RI QRQPHODQRPDVNLQFDQFHUDUHEHLQJUHSRUWHGHYHU\\HDUZRUOGZLGH $WKLJKHUODWLWXGHVWKHUHLVOHVVVXUIDFHOHYHO89%DQGDWHDFKRLQFUHDVHLQ ODWLWXGHVNLQFDQFHUUDWHVLQFUHDVHE\DIDFWRURI7KXVIRUHYHU\GHFUHDVH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

LQR]RQH±LQFUHDVHGFDQFHUFDVHVDUHH[SHFWHG%\VLPSO\PRYLQJNP QHDUHUWRWKHHTXDWRUH[SRVXUHWR89%UDGLDWLRQLQFUHDVHVE\RZLQJWRWKLQQLQJ RIWKHR]RQHOD\HU 6LQFH ODVW WZR GHFDGHV PDOLJQDQW PHODQRPD GHDWK UDWHV KDYH DOVR EHHQ LQFUHDVLQJ E\ ± DQQXDOO\ 2FXODU GDPDJH VXFK DV FDWDUDFWV DQG UHWLQDO GHJHQHUDWLRQ LPPXQH V\VWHP VXSSUHVVLRQ HWF DUH VRPH RI WKH RWKHU KHDOWK SUREOHPVOLQNHGWR89H[SRVXUH7\SLFDOPHGLFDOFRQGLWLRQVNQRZQWRKDYHEHHQ LQGXFHGE\89H[SRVXUHGXHWRR]RQHGHSOHWLRQKDYHEHHQVXPPDUL]HGLQ7DEOH 

LQR]RQH±LQFUHDVHGFDQFHUFDVHVDUHH[SHFWHG%\VLPSO\PRYLQJNP QHDUHUWRWKHHTXDWRUH[SRVXUHWR89%UDGLDWLRQLQFUHDVHVE\RZLQJWRWKLQQLQJ RIWKHR]RQHOD\HU 6LQFH ODVW WZR GHFDGHV PDOLJQDQW PHODQRPD GHDWK UDWHV KDYH DOVR EHHQ LQFUHDVLQJ E\ ± DQQXDOO\ 2FXODU GDPDJH VXFK DV FDWDUDFWV DQG UHWLQDO GHJHQHUDWLRQ LPPXQH V\VWHP VXSSUHVVLRQ HWF DUH VRPH RI WKH RWKHU KHDOWK SUREOHPVOLQNHGWR89H[SRVXUH7\SLFDOPHGLFDOFRQGLWLRQVNQRZQWRKDYHEHHQ LQGXFHGE\89H[SRVXUHGXHWRR]RQHGHSOHWLRQKDYHEHHQVXPPDUL]HGLQ7DEOH 

7DEOH89%LQGXFHGPDODGLHV>@

7DEOH89%LQGXFHGPDODGLHV>@

$UHD DIIHFWHG

&RQGLWLRQRUDJHQW

,QGLYLGXDOW\SHV

5DGLDWLRQ DPSOLILFDWLRQ IDFWRU

$UHD DIIHFWHG

&RQGLWLRQRUDJHQW

,QGLYLGXDOW\SHV

5DGLDWLRQ DPSOLILFDWLRQ IDFWRU

6NLQ

(U\WKHPDVXQEXUQ 1RQPHODQRPDWRXVFDQFHU

   

6NLQ

(U\WKHPDVXQEXUQ 1RQPHODQRPDWRXVFDQFHU

0HODQRPDFXWDQHRXV PDOLJQDQW ;HURGHUPD SLJPHQWRVD 6NLQDJHLQJ &RUQHDOGDPDJH

(\H

0HODQRPDFXWDQHRXV PDOLJQDQW ;HURGHUPD SLJPHQWRVD 6NLQDJHLQJ &RUQHDOGDPDJH

%DVDOFHOOFDUFLQRPD 6TXDPRXVFHOOFDUFLQRPD /LS FDQFHU 6DOLYDU\ JODQG FDQFHU 6XSHUILFLDO VSUHDGLQJ PDOLJQDQWOHQWLJR +XWFKLQVRQ¶V IUHFNOHV 1RGXODU 8QFODVVLILHG FRQGLWLRQ ZRUVHQHG (ODVWRVLV $FXWH 3KRWRNHUDWLWLV 6QRZEOLQGQHVV 1XFOHDU FDWDUDFWV 3RVWHULRU VXEFDSVXODU &DWDUDFWV &RUWLFDO FDWDUDFWV 3UHVE\RSLD UHDGLQJ *ODVVHV UHTXLUHG HDUOLHU ,QWUDRFXODUPHODQRPD 0HDVOHV &KLFNHQSR[ +HUSHVVLPSOH[ +,9,DFWLYDWLRQ /HLVKPDQLDVLV 0DODULD 7XEHUFXORVLV /HSURV\ &DQGLGLDVLV

   

(\H

%DVDOFHOOFDUFLQRPD 6TXDPRXVFHOOFDUFLQRPD /LS FDQFHU 6DOLYDU\ JODQG FDQFHU 6XSHUILFLDO VSUHDGLQJ PDOLJQDQWOHQWLJR +XWFKLQVRQ¶V IUHFNOHV 1RGXODU 8QFODVVLILHG FRQGLWLRQ ZRUVHQHG (ODVWRVLV $FXWH 3KRWRNHUDWLWLV 6QRZEOLQGQHVV 1XFOHDU FDWDUDFWV 3RVWHULRU VXEFDSVXODU &DWDUDFWV &RUWLFDO FDWDUDFWV 3UHVE\RSLD UHDGLQJ *ODVVHV UHTXLUHG HDUOLHU ,QWUDRFXODUPHODQRPD 0HDVOHV &KLFNHQSR[ +HUSHVVLPSOH[ +,9,DFWLYDWLRQ /HLVKPDQLDVLV 0DODULD 7XEHUFXORVLV /HSURV\ &DQGLGLDVLV

9LUXVHV

,QIHFWLRQV

2WKHU HIIHFWV 3URWR]RD

`

%DFWHULD )XQJL

/HQVDEQRUPDOLWLHV

9LUXVHV

,QIHFWLRQV 

`

`

/HQVDEQRUPDOLWLHV

 

2WKHU HIIHFWV 3URWR]RD %DFWHULD )XQJL

 



`

6FLHQWLVWVKDYHHVWLPDWHGWKDWLIWKH&)&HPLVVLRQVFRQWLQXHDWWKHSUHVHQW UDWHWKHUHZLOOEHPLOOLRQDGGLWLRQDOFDVHVRIVNLQFDQFHUZRUOGZLGH([SRVXUH RIODERUDWRU\DQLPDOVWR89UDGLDWLRQUHGXFHVWKHLUDELOLW\WRILJKWEDFWHULDOLQIHFWLRQV ,Q &KLOH WKH RQO\ SRSXORXV FRXQWU\ ORFDWHG GLUHFWO\ XQGHU WKH $QWDUFWLF R]RQH KROHDIRXUIROGLQFUHDVHLQFDUFLQRJHQLFPHODQRPDKDVEHHQQRWLFHGVLQFH

6FLHQWLVWVKDYHHVWLPDWHGWKDWLIWKH&)&HPLVVLRQVFRQWLQXHDWWKHSUHVHQW UDWHWKHUHZLOOEHPLOOLRQDGGLWLRQDOFDVHVRIVNLQFDQFHUZRUOGZLGH([SRVXUH RIODERUDWRU\DQLPDOVWR89UDGLDWLRQUHGXFHVWKHLUDELOLW\WRILJKWEDFWHULDOLQIHFWLRQV ,Q &KLOH WKH RQO\ SRSXORXV FRXQWU\ ORFDWHG GLUHFWO\ XQGHU WKH $QWDUFWLF R]RQH KROHDIRXUIROGLQFUHDVHLQFDUFLQRJHQLFPHODQRPDKDVEHHQQRWLFHGVLQFH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

LQR]RQH±LQFUHDVHGFDQFHUFDVHVDUHH[SHFWHG%\VLPSO\PRYLQJNP QHDUHUWRWKHHTXDWRUH[SRVXUHWR89%UDGLDWLRQLQFUHDVHVE\RZLQJWRWKLQQLQJ RIWKHR]RQHOD\HU 6LQFH ODVW WZR GHFDGHV PDOLJQDQW PHODQRPD GHDWK UDWHV KDYH DOVR EHHQ LQFUHDVLQJ E\ ± DQQXDOO\ 2FXODU GDPDJH VXFK DV FDWDUDFWV DQG UHWLQDO GHJHQHUDWLRQ LPPXQH V\VWHP VXSSUHVVLRQ HWF DUH VRPH RI WKH RWKHU KHDOWK SUREOHPVOLQNHGWR89H[SRVXUH7\SLFDOPHGLFDOFRQGLWLRQVNQRZQWRKDYHEHHQ LQGXFHGE\89H[SRVXUHGXHWRR]RQHGHSOHWLRQKDYHEHHQVXPPDUL]HGLQ7DEOH 

LQR]RQH±LQFUHDVHGFDQFHUFDVHVDUHH[SHFWHG%\VLPSO\PRYLQJNP QHDUHUWRWKHHTXDWRUH[SRVXUHWR89%UDGLDWLRQLQFUHDVHVE\RZLQJWRWKLQQLQJ RIWKHR]RQHOD\HU 6LQFH ODVW WZR GHFDGHV PDOLJQDQW PHODQRPD GHDWK UDWHV KDYH DOVR EHHQ LQFUHDVLQJ E\ ± DQQXDOO\ 2FXODU GDPDJH VXFK DV FDWDUDFWV DQG UHWLQDO GHJHQHUDWLRQ LPPXQH V\VWHP VXSSUHVVLRQ HWF DUH VRPH RI WKH RWKHU KHDOWK SUREOHPVOLQNHGWR89H[SRVXUH7\SLFDOPHGLFDOFRQGLWLRQVNQRZQWRKDYHEHHQ LQGXFHGE\89H[SRVXUHGXHWRR]RQHGHSOHWLRQKDYHEHHQVXPPDUL]HGLQ7DEOH 

7DEOH89%LQGXFHGPDODGLHV>@

7DEOH89%LQGXFHGPDODGLHV>@

$UHD DIIHFWHG

&RQGLWLRQRUDJHQW

,QGLYLGXDOW\SHV

5DGLDWLRQ DPSOLILFDWLRQ IDFWRU

$UHD DIIHFWHG

&RQGLWLRQRUDJHQW

,QGLYLGXDOW\SHV

5DGLDWLRQ DPSOLILFDWLRQ IDFWRU

6NLQ

(U\WKHPDVXQEXUQ 1RQPHODQRPDWRXVFDQFHU

   

6NLQ

(U\WKHPDVXQEXUQ 1RQPHODQRPDWRXVFDQFHU

0HODQRPDFXWDQHRXV PDOLJQDQW ;HURGHUPD SLJPHQWRVD 6NLQDJHLQJ &RUQHDOGDPDJH

(\H

0HODQRPDFXWDQHRXV PDOLJQDQW ;HURGHUPD SLJPHQWRVD 6NLQDJHLQJ &RUQHDOGDPDJH

%DVDOFHOOFDUFLQRPD 6TXDPRXVFHOOFDUFLQRPD /LS FDQFHU 6DOLYDU\ JODQG FDQFHU 6XSHUILFLDO VSUHDGLQJ PDOLJQDQWOHQWLJR +XWFKLQVRQ¶V IUHFNOHV 1RGXODU 8QFODVVLILHG FRQGLWLRQ ZRUVHQHG (ODVWRVLV $FXWH 3KRWRNHUDWLWLV 6QRZEOLQGQHVV 1XFOHDU FDWDUDFWV 3RVWHULRU VXEFDSVXODU &DWDUDFWV &RUWLFDO FDWDUDFWV 3UHVE\RSLD UHDGLQJ *ODVVHV UHTXLUHG HDUOLHU ,QWUDRFXODUPHODQRPD 0HDVOHV &KLFNHQSR[ +HUSHVVLPSOH[ +,9,DFWLYDWLRQ /HLVKPDQLDVLV 0DODULD 7XEHUFXORVLV /HSURV\ &DQGLGLDVLV

   

(\H

%DVDOFHOOFDUFLQRPD 6TXDPRXVFHOOFDUFLQRPD /LS FDQFHU 6DOLYDU\ JODQG FDQFHU 6XSHUILFLDO VSUHDGLQJ PDOLJQDQWOHQWLJR +XWFKLQVRQ¶V IUHFNOHV 1RGXODU 8QFODVVLILHG FRQGLWLRQ ZRUVHQHG (ODVWRVLV $FXWH 3KRWRNHUDWLWLV 6QRZEOLQGQHVV 1XFOHDU FDWDUDFWV 3RVWHULRU VXEFDSVXODU &DWDUDFWV &RUWLFDO FDWDUDFWV 3UHVE\RSLD UHDGLQJ *ODVVHV UHTXLUHG HDUOLHU ,QWUDRFXODUPHODQRPD 0HDVOHV &KLFNHQSR[ +HUSHVVLPSOH[ +,9,DFWLYDWLRQ /HLVKPDQLDVLV 0DODULD 7XEHUFXORVLV /HSURV\ &DQGLGLDVLV

9LUXVHV

,QIHFWLRQV

2WKHU HIIHFWV 3URWR]RD

`

%DFWHULD )XQJL

/HQVDEQRUPDOLWLHV

9LUXVHV

,QIHFWLRQV 

`

6FLHQWLVWVKDYHHVWLPDWHGWKDWLIWKH&)&HPLVVLRQVFRQWLQXHDWWKHSUHVHQW UDWHWKHUHZLOOEHPLOOLRQDGGLWLRQDOFDVHVRIVNLQFDQFHUZRUOGZLGH([SRVXUH RIODERUDWRU\DQLPDOVWR89UDGLDWLRQUHGXFHVWKHLUDELOLW\WRILJKWEDFWHULDOLQIHFWLRQV ,Q &KLOH WKH RQO\ SRSXORXV FRXQWU\ ORFDWHG GLUHFWO\ XQGHU WKH $QWDUFWLF R]RQH KROHDIRXUIROGLQFUHDVHLQFDUFLQRJHQLFPHODQRPDKDVEHHQQRWLFHGVLQFH

`

/HQVDEQRUPDOLWLHV

 

2WKHU HIIHFWV 3URWR]RD %DFWHULD )XQJL

 



`

6FLHQWLVWVKDYHHVWLPDWHGWKDWLIWKH&)&HPLVVLRQVFRQWLQXHDWWKHSUHVHQW UDWHWKHUHZLOOEHPLOOLRQDGGLWLRQDOFDVHVRIVNLQFDQFHUZRUOGZLGH([SRVXUH RIODERUDWRU\DQLPDOVWR89UDGLDWLRQUHGXFHVWKHLUDELOLW\WRILJKWEDFWHULDOLQIHFWLRQV ,Q &KLOH WKH RQO\ SRSXORXV FRXQWU\ ORFDWHG GLUHFWO\ XQGHU WKH $QWDUFWLF R]RQH KROHDIRXUIROGLQFUHDVHLQFDUFLQRJHQLFPHODQRPDKDVEHHQQRWLFHGVLQFH

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

6NLQFDQFHUDQGFDWDUDFWFDVHVKDYHEHHQLQFUHDVLQJLQ$XVWUDOLDDOVRVLQFH $XVWUDOLDQWHOHYLVLRQFKDQQHOVEURDGFDVW89OHYHOVGDLO\DQGZDUQSHRSOHWRVWD\ LQGRRUVGXULQJEDGVSHOOV+DWVVSHFLDOFORWKLQJVVXQVFUHHQSURWHFWLRQDUHUHTXLUHG E\ODZIRUVFKRROFKLOGUHQ

6NLQFDQFHUDQGFDWDUDFWFDVHVKDYHEHHQLQFUHDVLQJLQ$XVWUDOLDDOVRVLQFH $XVWUDOLDQWHOHYLVLRQFKDQQHOVEURDGFDVW89OHYHOVGDLO\DQGZDUQSHRSOHWRVWD\ LQGRRUVGXULQJEDGVSHOOV+DWVVSHFLDOFORWKLQJVVXQVFUHHQSURWHFWLRQDUHUHTXLUHG E\ODZIRUVFKRROFKLOGUHQ

(IIHFWVRQ3ODQWVDQG$TXDWLF6\VWHPV

(IIHFWVRQ3ODQWVDQG$TXDWLF6\VWHPV

89%UDGLDWLRQUHGXFHVWKHFURS\LHOGDQGTXDOLW\$WWKHFXUUHQWOHYHORI89 H[SRVXUHFRWWRQSURGXFWLRQLVHVWLPDWHGWRUHGXFHE\&RUQDQGZKHDWDOVR ZLOOEHDIIHFWHG 0RUH WKDQ  RI ZRUOG¶V DQLPDO SURWHLQ SURGXFWLRQ FRPHV IURP WKH VHD 0DULQHSK\WRSODQNWRQLVDPDMRUVLQNIRUFDUERQGLR[LGH7KH\DUHWKHIRXQGDWLRQ RIDTXDWLFIRRGZHEV8VXDOO\KLJKHVWFRQFHQWUDWLRQRIPDULQHSK\WRSODQNWRQVLV IRXQGDWKLJKODWLWXGHV7KHFRQWLQHQWDOVKHOYHVWURSLFVDQGVXEWURSLFZDWHUVKDYH  ±WLPHVORZHUFRQFHQWUDWLRQ3K\WRSODQNWRQSURGXFWLYLW\LVOLPLWHGWRHXSKRWLF ]RQHLHWKHXSSHUOD\HURIWKHZDWHUFROXPQLQZKLFKWKHUHDUHVXIILFLHQWQXWULHQWV WHPSHUDWXUHVDOLQLW\DQGOLJKWDYDLODELOLW\([SRVXUHWR89UDGLDWLRQKDVEHHQVKRZQ WRDGYHUVHO\DIIHFWERWKRULHQWDWLRQPHFKDQLVPVDQGPRELOLW\LQSK\WRSODQNWRQV )LVK VKULPS FUDE DPSKLELDQV DQG RWKHU DQLPDOV VXIIHU GDPDJHV LQ WKH HDUO\ GHYHORSPHQWDOVWDJHV5HSURGXFWLYHFDSDFLW\DQGLPSDLUHGODUYDOGHYHORSPHQWDUH WKH RWKHU UHFRUGHG DGYHUVH HIIHFWV

89%UDGLDWLRQUHGXFHVWKHFURS\LHOGDQGTXDOLW\$WWKHFXUUHQWOHYHORI89 H[SRVXUHFRWWRQSURGXFWLRQLVHVWLPDWHGWRUHGXFHE\&RUQDQGZKHDWDOVR ZLOOEHDIIHFWHG 0RUH WKDQ  RI ZRUOG¶V DQLPDO SURWHLQ SURGXFWLRQ FRPHV IURP WKH VHD 0DULQHSK\WRSODQNWRQLVDPDMRUVLQNIRUFDUERQGLR[LGH7KH\DUHWKHIRXQGDWLRQ RIDTXDWLFIRRGZHEV8VXDOO\KLJKHVWFRQFHQWUDWLRQRIPDULQHSK\WRSODQNWRQVLV IRXQGDWKLJKODWLWXGHV7KHFRQWLQHQWDOVKHOYHVWURSLFVDQGVXEWURSLFZDWHUVKDYH  ±WLPHVORZHUFRQFHQWUDWLRQ3K\WRSODQNWRQSURGXFWLYLW\LVOLPLWHGWRHXSKRWLF ]RQHLHWKHXSSHUOD\HURIWKHZDWHUFROXPQLQZKLFKWKHUHDUHVXIILFLHQWQXWULHQWV WHPSHUDWXUHVDOLQLW\DQGOLJKWDYDLODELOLW\([SRVXUHWR89UDGLDWLRQKDVEHHQVKRZQ WRDGYHUVHO\DIIHFWERWKRULHQWDWLRQPHFKDQLVPVDQGPRELOLW\LQSK\WRSODQNWRQV )LVK VKULPS FUDE DPSKLELDQV DQG RWKHU DQLPDOV VXIIHU GDPDJHV LQ WKH HDUO\ GHYHORSPHQWDOVWDJHV5HSURGXFWLYHFDSDFLW\DQGLPSDLUHGODUYDOGHYHORSPHQWDUH WKH RWKHU UHFRUGHG DGYHUVH HIIHFWV

 (IIHFW RQ %LRJHRFKHPLFDO &\FOHV

 (IIHFW RQ %LRJHRFKHPLFDO &\FOHV

,QFUHDVHGVRODU89UDGLDWLRQFDQDOWHUWKHFKDUDFWHULVWLFVRIWKHVRXUFHVDQGVLQNV RIWUDFHJDVHVLQWKHDWPRVSKHUHVXFKDV&2&2&26HWF89%FRXOGPRGLI\ WKHSURGXFWLRQDQGGHFRPSRVLWLRQUDWHVRISODQWPDWWHU%LRGHJUDGDELOLW\RIWKH EXULHG OLWWHU LV DOVR DIIHFWHG DGYHUVHO\ 3ULPDU\ SURGXFWLRQ FDQ EH UHGXFHG E\ HQKDQFHG89%EXWWKHHIIHFWLVYDULDEOHDPRQJVSHFLHVDQGHYHQKDUYHVWLQJRI VRPHFURSV6LPLODUO\SURGXFWLRQRI&2IURPSODQWPDWWHULVVSHFLHVGHSHQGHQW DQGRFFXUVPRUHHIILFLHQWO\IURPGHDGPDWWHUWKDQOLYLQJPDWWHU

,QFUHDVHGVRODU89UDGLDWLRQFDQDOWHUWKHFKDUDFWHULVWLFVRIWKHVRXUFHVDQGVLQNV RIWUDFHJDVHVLQWKHDWPRVSKHUHVXFKDV&2&2&26HWF89%FRXOGPRGLI\ WKHSURGXFWLRQDQGGHFRPSRVLWLRQUDWHVRISODQWPDWWHU%LRGHJUDGDELOLW\RIWKH EXULHG OLWWHU LV DOVR DIIHFWHG DGYHUVHO\ 3ULPDU\ SURGXFWLRQ FDQ EH UHGXFHG E\ HQKDQFHG89%EXWWKHHIIHFWLVYDULDEOHDPRQJVSHFLHVDQGHYHQKDUYHVWLQJRI VRPHFURSV6LPLODUO\SURGXFWLRQRI&2IURPSODQWPDWWHULVVSHFLHVGHSHQGHQW DQGRFFXUVPRUHHIILFLHQWO\IURPGHDGPDWWHUWKDQOLYLQJPDWWHU

(IIHFWRQ$LU4XDOLW\

(IIHFWRQ$LU4XDOLW\

5HGXFWLRQRIR]RQHDQGFRQFRPLWDQWLQFUHDVHRI89UDGLDWLRQSHQHWUDWLQJWKHORZHU DWPRVSKHUH ZRXOG LPPHGLDWHO\ DIIHFW WKH SKRWRGLVVRFLDWLRQ UDWHV RI PHWKDQH K\GURJHQSHUR[LGH&+)&VHWF$FKDQJHLQWKHSKRWRGLVVRFLDWLRQUDWHFRQVWDQW RIKDVEHHQQRWLFHGEHWZHHQ±0RGHOFDOFXODWLRQVEDVHGRQWKHVH ILJXUHV VXJJHVW WKDW LQ WKH WURSRVSKHUH R]RQH FRQFHQWUDWLRQ ZRXOG LQFUHDVH WR SRWHQWLDOO\ KDUPIXO OHYHOV 7KLV DIIHFWV WKH KHUELYRUHV SODQW SDWKRJHQV DQG ELRJHRFKHPLFDOF\FOHV7KHHFRV\VWHPHYDOXDWLRQVDUHVWLOOLQWKHEHJLQQLQJVWDJHV RIUHVHDUFK%LRGHJUDGDWLRQRIV\QWKHWLFSRO\PHUVELRSRO\PHUVDQGRWKHUSODVWLFV LVDQRWKHUDUHDWKDWQHHGVPRUHUHVHDUFK

5HGXFWLRQRIR]RQHDQGFRQFRPLWDQWLQFUHDVHRI89UDGLDWLRQSHQHWUDWLQJWKHORZHU DWPRVSKHUH ZRXOG LPPHGLDWHO\ DIIHFW WKH SKRWRGLVVRFLDWLRQ UDWHV RI PHWKDQH K\GURJHQSHUR[LGH&+)&VHWF$FKDQJHLQWKHSKRWRGLVVRFLDWLRQUDWHFRQVWDQW RIKDVEHHQQRWLFHGEHWZHHQ±0RGHOFDOFXODWLRQVEDVHGRQWKHVH ILJXUHV VXJJHVW WKDW LQ WKH WURSRVSKHUH R]RQH FRQFHQWUDWLRQ ZRXOG LQFUHDVH WR SRWHQWLDOO\ KDUPIXO OHYHOV 7KLV DIIHFWV WKH KHUELYRUHV SODQW SDWKRJHQV DQG ELRJHRFKHPLFDOF\FOHV7KHHFRV\VWHPHYDOXDWLRQVDUHVWLOOLQWKHEHJLQQLQJVWDJHV RIUHVHDUFK%LRGHJUDGDWLRQRIV\QWKHWLFSRO\PHUVELRSRO\PHUVDQGRWKHUSODVWLFV LVDQRWKHUDUHDWKDWQHHGVPRUHUHVHDUFK

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

2]RQHDQG&KORURIOXRURFDUERQVLQWKH6WUDWRVSKHUH 

6NLQFDQFHUDQGFDWDUDFWFDVHVKDYHEHHQLQFUHDVLQJLQ$XVWUDOLDDOVRVLQFH $XVWUDOLDQWHOHYLVLRQFKDQQHOVEURDGFDVW89OHYHOVGDLO\DQGZDUQSHRSOHWRVWD\ LQGRRUVGXULQJEDGVSHOOV+DWVVSHFLDOFORWKLQJVVXQVFUHHQSURWHFWLRQDUHUHTXLUHG E\ODZIRUVFKRROFKLOGUHQ

6NLQFDQFHUDQGFDWDUDFWFDVHVKDYHEHHQLQFUHDVLQJLQ$XVWUDOLDDOVRVLQFH $XVWUDOLDQWHOHYLVLRQFKDQQHOVEURDGFDVW89OHYHOVGDLO\DQGZDUQSHRSOHWRVWD\ LQGRRUVGXULQJEDGVSHOOV+DWVVSHFLDOFORWKLQJVVXQVFUHHQSURWHFWLRQDUHUHTXLUHG E\ODZIRUVFKRROFKLOGUHQ

(IIHFWVRQ3ODQWVDQG$TXDWLF6\VWHPV

(IIHFWVRQ3ODQWVDQG$TXDWLF6\VWHPV

89%UDGLDWLRQUHGXFHVWKHFURS\LHOGDQGTXDOLW\$WWKHFXUUHQWOHYHORI89 H[SRVXUHFRWWRQSURGXFWLRQLVHVWLPDWHGWRUHGXFHE\&RUQDQGZKHDWDOVR ZLOOEHDIIHFWHG 0RUH WKDQ  RI ZRUOG¶V DQLPDO SURWHLQ SURGXFWLRQ FRPHV IURP WKH VHD 0DULQHSK\WRSODQNWRQLVDPDMRUVLQNIRUFDUERQGLR[LGH7KH\DUHWKHIRXQGDWLRQ RIDTXDWLFIRRGZHEV8VXDOO\KLJKHVWFRQFHQWUDWLRQRIPDULQHSK\WRSODQNWRQVLV IRXQGDWKLJKODWLWXGHV7KHFRQWLQHQWDOVKHOYHVWURSLFVDQGVXEWURSLFZDWHUVKDYH  ±WLPHVORZHUFRQFHQWUDWLRQ3K\WRSODQNWRQSURGXFWLYLW\LVOLPLWHGWRHXSKRWLF ]RQHLHWKHXSSHUOD\HURIWKHZDWHUFROXPQLQZKLFKWKHUHDUHVXIILFLHQWQXWULHQWV WHPSHUDWXUHVDOLQLW\DQGOLJKWDYDLODELOLW\([SRVXUHWR89UDGLDWLRQKDVEHHQVKRZQ WRDGYHUVHO\DIIHFWERWKRULHQWDWLRQPHFKDQLVPVDQGPRELOLW\LQSK\WRSODQNWRQV )LVK VKULPS FUDE DPSKLELDQV DQG RWKHU DQLPDOV VXIIHU GDPDJHV LQ WKH HDUO\ GHYHORSPHQWDOVWDJHV5HSURGXFWLYHFDSDFLW\DQGLPSDLUHGODUYDOGHYHORSPHQWDUH WKH RWKHU UHFRUGHG DGYHUVH HIIHFWV

89%UDGLDWLRQUHGXFHVWKHFURS\LHOGDQGTXDOLW\$WWKHFXUUHQWOHYHORI89 H[SRVXUHFRWWRQSURGXFWLRQLVHVWLPDWHGWRUHGXFHE\&RUQDQGZKHDWDOVR ZLOOEHDIIHFWHG 0RUH WKDQ  RI ZRUOG¶V DQLPDO SURWHLQ SURGXFWLRQ FRPHV IURP WKH VHD 0DULQHSK\WRSODQNWRQLVDPDMRUVLQNIRUFDUERQGLR[LGH7KH\DUHWKHIRXQGDWLRQ RIDTXDWLFIRRGZHEV8VXDOO\KLJKHVWFRQFHQWUDWLRQRIPDULQHSK\WRSODQNWRQVLV IRXQGDWKLJKODWLWXGHV7KHFRQWLQHQWDOVKHOYHVWURSLFVDQGVXEWURSLFZDWHUVKDYH  ±WLPHVORZHUFRQFHQWUDWLRQ3K\WRSODQNWRQSURGXFWLYLW\LVOLPLWHGWRHXSKRWLF ]RQHLHWKHXSSHUOD\HURIWKHZDWHUFROXPQLQZKLFKWKHUHDUHVXIILFLHQWQXWULHQWV WHPSHUDWXUHVDOLQLW\DQGOLJKWDYDLODELOLW\([SRVXUHWR89UDGLDWLRQKDVEHHQVKRZQ WRDGYHUVHO\DIIHFWERWKRULHQWDWLRQPHFKDQLVPVDQGPRELOLW\LQSK\WRSODQNWRQV )LVK VKULPS FUDE DPSKLELDQV DQG RWKHU DQLPDOV VXIIHU GDPDJHV LQ WKH HDUO\ GHYHORSPHQWDOVWDJHV5HSURGXFWLYHFDSDFLW\DQGLPSDLUHGODUYDOGHYHORSPHQWDUH WKH RWKHU UHFRUGHG DGYHUVH HIIHFWV

 (IIHFW RQ %LRJHRFKHPLFDO &\FOHV

 (IIHFW RQ %LRJHRFKHPLFDO &\FOHV

,QFUHDVHGVRODU89UDGLDWLRQFDQDOWHUWKHFKDUDFWHULVWLFVRIWKHVRXUFHVDQGVLQNV RIWUDFHJDVHVLQWKHDWPRVSKHUHVXFKDV&2&2&26HWF89%FRXOGPRGLI\ WKHSURGXFWLRQDQGGHFRPSRVLWLRQUDWHVRISODQWPDWWHU%LRGHJUDGDELOLW\RIWKH EXULHG OLWWHU LV DOVR DIIHFWHG DGYHUVHO\ 3ULPDU\ SURGXFWLRQ FDQ EH UHGXFHG E\ HQKDQFHG89%EXWWKHHIIHFWLVYDULDEOHDPRQJVSHFLHVDQGHYHQKDUYHVWLQJRI VRPHFURSV6LPLODUO\SURGXFWLRQRI&2IURPSODQWPDWWHULVVSHFLHVGHSHQGHQW DQGRFFXUVPRUHHIILFLHQWO\IURPGHDGPDWWHUWKDQOLYLQJPDWWHU

,QFUHDVHGVRODU89UDGLDWLRQFDQDOWHUWKHFKDUDFWHULVWLFVRIWKHVRXUFHVDQGVLQNV RIWUDFHJDVHVLQWKHDWPRVSKHUHVXFKDV&2&2&26HWF89%FRXOGPRGLI\ WKHSURGXFWLRQDQGGHFRPSRVLWLRQUDWHVRISODQWPDWWHU%LRGHJUDGDELOLW\RIWKH EXULHG OLWWHU LV DOVR DIIHFWHG DGYHUVHO\ 3ULPDU\ SURGXFWLRQ FDQ EH UHGXFHG E\ HQKDQFHG89%EXWWKHHIIHFWLVYDULDEOHDPRQJVSHFLHVDQGHYHQKDUYHVWLQJRI VRPHFURSV6LPLODUO\SURGXFWLRQRI&2IURPSODQWPDWWHULVVSHFLHVGHSHQGHQW DQGRFFXUVPRUHHIILFLHQWO\IURPGHDGPDWWHUWKDQOLYLQJPDWWHU

(IIHFWRQ$LU4XDOLW\

(IIHFWRQ$LU4XDOLW\

5HGXFWLRQRIR]RQHDQGFRQFRPLWDQWLQFUHDVHRI89UDGLDWLRQSHQHWUDWLQJWKHORZHU DWPRVSKHUH ZRXOG LPPHGLDWHO\ DIIHFW WKH SKRWRGLVVRFLDWLRQ UDWHV RI PHWKDQH K\GURJHQSHUR[LGH&+)&VHWF$FKDQJHLQWKHSKRWRGLVVRFLDWLRQUDWHFRQVWDQW RIKDVEHHQQRWLFHGEHWZHHQ±0RGHOFDOFXODWLRQVEDVHGRQWKHVH ILJXUHV VXJJHVW WKDW LQ WKH WURSRVSKHUH R]RQH FRQFHQWUDWLRQ ZRXOG LQFUHDVH WR SRWHQWLDOO\ KDUPIXO OHYHOV 7KLV DIIHFWV WKH KHUELYRUHV SODQW SDWKRJHQV DQG ELRJHRFKHPLFDOF\FOHV7KHHFRV\VWHPHYDOXDWLRQVDUHVWLOOLQWKHEHJLQQLQJVWDJHV RIUHVHDUFK%LRGHJUDGDWLRQRIV\QWKHWLFSRO\PHUVELRSRO\PHUVDQGRWKHUSODVWLFV LVDQRWKHUDUHDWKDWQHHGVPRUHUHVHDUFK

5HGXFWLRQRIR]RQHDQGFRQFRPLWDQWLQFUHDVHRI89UDGLDWLRQSHQHWUDWLQJWKHORZHU DWPRVSKHUH ZRXOG LPPHGLDWHO\ DIIHFW WKH SKRWRGLVVRFLDWLRQ UDWHV RI PHWKDQH K\GURJHQSHUR[LGH&+)&VHWF$FKDQJHLQWKHSKRWRGLVVRFLDWLRQUDWHFRQVWDQW RIKDVEHHQQRWLFHGEHWZHHQ±0RGHOFDOFXODWLRQVEDVHGRQWKHVH ILJXUHV VXJJHVW WKDW LQ WKH WURSRVSKHUH R]RQH FRQFHQWUDWLRQ ZRXOG LQFUHDVH WR SRWHQWLDOO\ KDUPIXO OHYHOV 7KLV DIIHFWV WKH KHUELYRUHV SODQW SDWKRJHQV DQG ELRJHRFKHPLFDOF\FOHV7KHHFRV\VWHPHYDOXDWLRQVDUHVWLOOLQWKHEHJLQQLQJVWDJHV RIUHVHDUFK%LRGHJUDGDWLRQRIV\QWKHWLFSRO\PHUVELRSRO\PHUVDQGRWKHUSODVWLFV LVDQRWKHUDUHDWKDWQHHGVPRUHUHVHDUFK

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3527(&7,21 2) 2=21( /$&2 JDV@

 u   PROV OLW DWP 

7KH&KHPLVWU\RI6XOSKXU'LR[LGH

7KH&KHPLVWU\RI6XOSKXU'LR[LGH

6XOSKXU GLR[LGH LV D WULDWRPLF PROHFXOH ZLWK D EHQW V\PPHWULFDO VWUXFWXUH OLNH ZDWHUZKHUHVXOSKXULVLQR[LGDWLRQVWDWH,QWKHWURSRVSKHUH62DEVRUEV89 UDGLDWLRQRIQPWRJRWRWKHH[FLWHGVLQJOHWVWDWH  % DQGFURVVHVRYHUWR % VWDWH >@

6XOSKXU GLR[LGH LV D WULDWRPLF PROHFXOH ZLWK D EHQW V\PPHWULFDO VWUXFWXUH OLNH ZDWHUZKHUHVXOSKXULVLQR[LGDWLRQVWDWH,QWKHWURSRVSKHUH62DEVRUEV89 UDGLDWLRQRIQPWRJRWRWKHH[FLWHGVLQJOHWVWDWH  % DQGFURVVHVRYHUWR % VWDWH >@





KY 62  ; $  o 62   %   QP



% LVDTXDQWXPPHFKDQLFDOO\IRUELGGHQWUDQVLWLRQDQGKHQFHLWLVQRWVWDEOH  7KHUHIRUHLWTXLFNO\UHDFWVZLWKDQRWKHUJURXQGVWDWH62PROHFXOH$ WRJLYH

62   %  62   $ o 62  62



% LVDTXDQWXPPHFKDQLFDOO\IRUELGGHQWUDQVLWLRQDQGKHQFHLWLVQRWVWDEOH  7KHUHIRUHLWTXLFNO\UHDFWVZLWKDQRWKHUJURXQGVWDWH62PROHFXOH$ WRJLYH

62   %  62   $ o 62  62



$FLG5DLQ



KY 62  ; $  o 62   %   QP







7KHUHIRUH

$FLG5DLQ



7KHUHIRUH ª¬&2  DT º¼

DQG

ª+ º ¬ ¼

RU

ª+  º ¬ ¼

RU

S+

ª¬&2  DT º¼

 . + 3&2  PRO  / u  DWP u  u  DWP

 PRO  / u  DWP u  u  DWP

 u  PRO  /

 u  PRO  /

 u 



 . + 3&2





u  u    PRO  / 

DQG

ª+ º ¬ ¼

 u  PRO  /

RU

ª+  º ¬ ¼

 ORJ ª¬ +  º¼

RU

S+



 u 







u  u    PRO  / 

 u  PRO  /  ORJ ª¬ +  º¼



7KLV LQGLFDWHV WKDW S+ RI WKH UDLQZDWHU LV VOLJKWO\ DFLGLF EXW GHILQLWHO\ QRW QHXWUDO2WKHUQDWXUDOJDVHVVXFKDV6212[+)+&22+HWFDOVRORZHUWKH S+ZKLOHDPPRQLDDQGDONDOLQHGXVWVUDLVHLW7KHILQDOS+RIWKHUDLQZDWHUZRXOG EHDQ\ZKHUHEHWZHHQDQG7KHUHIRUHVRPHUHVHDUFKHUVFRQVLGHUDFLGUDLQDV KDYLQJDS+ORZHUWKDQZKLFKFRUUHVSRQGVWRWKHFDUERQDWHFDOFXODWLRQJLYHQ DERYH 2WKHUV WDNH D PRUH SUDJPDWLF YLHZ WKDW D S+ RI OHVV WKDQ  VKRXOG EH FRQVLGHUHGDVDFLGUDLQ $WDQ\WLPHFDUERQGLR[LGHUHDFWVZLWKZDWHUWRIRUPWKHIROORZLQJSURGXFWV

7KLV LQGLFDWHV WKDW S+ RI WKH UDLQZDWHU LV VOLJKWO\ DFLGLF EXW GHILQLWHO\ QRW QHXWUDO2WKHUQDWXUDOJDVHVVXFKDV6212[+)+&22+HWFDOVRORZHUWKH S+ZKLOHDPPRQLDDQGDONDOLQHGXVWVUDLVHLW7KHILQDOS+RIWKHUDLQZDWHUZRXOG EHDQ\ZKHUHEHWZHHQDQG7KHUHIRUHVRPHUHVHDUFKHUVFRQVLGHUDFLGUDLQDV KDYLQJDS+ORZHUWKDQZKLFKFRUUHVSRQGVWRWKHFDUERQDWHFDOFXODWLRQJLYHQ DERYH 2WKHUV WDNH D PRUH SUDJPDWLF YLHZ WKDW D S+ RI OHVV WKDQ  VKRXOG EH FRQVLGHUHGDVDFLGUDLQ $WDQ\WLPHFDUERQGLR[LGHUHDFWVZLWKZDWHUWRIRUPWKHIROORZLQJSURGXFWV

&2  +  2 l +  &2 l +&2  +  l &2   + 

&2  +  2 l +  &2 l +&2  +  l &2   + 



7KHS.DRIWKHIRUPDWLRQRIFDUERQDWHLV7KHDPRXQWRI&2LQVROXWLRQ LVDIXQFWLRQRIWKHSDUWLDOSUHVVXUHRIFDUERQGLR[LGHZKLFKLQWXUQLVSURSRUWLRQDO WRWKHPROHIUDFWLRQRIWKHJDVQXPEHURIPROHVRIDSDUWLFXODUJDVGLYLGHGE\WKH WRWDOQXPEHURIPROHVLQWKHPL[WXUH $WSSPZHJHW .+

+HQU\ V ODZ FRQVW

ª +&2 º ¬ ¼ >&2 JDV@

 u   PROV OLW DWP 



7KHS.DRIWKHIRUPDWLRQRIFDUERQDWHLV7KHDPRXQWRI&2LQVROXWLRQ LVDIXQFWLRQRIWKHSDUWLDOSUHVVXUHRIFDUERQGLR[LGHZKLFKLQWXUQLVSURSRUWLRQDO WRWKHPROHIUDFWLRQRIWKHJDVQXPEHURIPROHVRIDSDUWLFXODUJDVGLYLGHGE\WKH WRWDOQXPEHURIPROHVLQWKHPL[WXUH $WSSPZHJHW .+

+HQU\ V ODZ FRQVW

ª +&2 º ¬ ¼ >&2 JDV@

 u   PROV OLW DWP 

7KH&KHPLVWU\RI6XOSKXU'LR[LGH

7KH&KHPLVWU\RI6XOSKXU'LR[LGH

6XOSKXU GLR[LGH LV D WULDWRPLF PROHFXOH ZLWK D EHQW V\PPHWULFDO VWUXFWXUH OLNH ZDWHUZKHUHVXOSKXULVLQR[LGDWLRQVWDWH,QWKHWURSRVSKHUH62DEVRUEV89 UDGLDWLRQRIQPWRJRWRWKHH[FLWHGVLQJOHWVWDWH  % DQGFURVVHVRYHUWR % VWDWH >@

6XOSKXU GLR[LGH LV D WULDWRPLF PROHFXOH ZLWK D EHQW V\PPHWULFDO VWUXFWXUH OLNH ZDWHUZKHUHVXOSKXULVLQR[LGDWLRQVWDWH,QWKHWURSRVSKHUH62DEVRUEV89 UDGLDWLRQRIQPWRJRWRWKHH[FLWHGVLQJOHWVWDWH  % DQGFURVVHVRYHUWR % VWDWH >@





KY 62  ; $  o 62   %   QP



% LVDTXDQWXPPHFKDQLFDOO\IRUELGGHQWUDQVLWLRQDQGKHQFHLWLVQRWVWDEOH  7KHUHIRUHLWTXLFNO\UHDFWVZLWKDQRWKHUJURXQGVWDWH62PROHFXOH$ WRJLYH

62   %  62   $ o 62  62







KY 62  ; $  o 62   %   QP



% LVDTXDQWXPPHFKDQLFDOO\IRUELGGHQWUDQVLWLRQDQGKHQFHLWLVQRWVWDEOH  7KHUHIRUHLWTXLFNO\UHDFWVZLWKDQRWKHUJURXQGVWDWH62PROHFXOH$ WRJLYH

62   %  62   $ o 62  62



 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

6XOSKXUR[LGH62 UHDFWVZLWKDQRWKHU62PROHFXOHWRJLYH

6XOSKXUR[LGH62 UHDFWVZLWKDQRWKHU62PROHFXOHWRJLYH

62  62  o 62  6



62  62  o 62  6



7KHSKRWRR[LGDWLRQRI62LVPXFKIDVWHULQWKHSROOXWHGDWPRVSKHUHFRQWDLQLQJ K\GURFDUERQV DQG 12[Â

7KHSKRWRR[LGDWLRQRI62LVPXFKIDVWHULQWKHSROOXWHGDWPRVSKHUHFRQWDLQLQJ K\GURFDUERQV DQG 12[Â

62  %  12 o 62  12  o 62  12

62  %  12 o 62  12  o 62  12



7KLVUHDFWLRQLQGLFDWHVWKDWRQO\WULSOHW62LVFDWDO\WLFDOO\R[LGL]HGE\QLWULF DFLG ,W PXVW EH UHPHPEHUHG KHUH WKDW WKH JURXQG VWDWH 62 PROHFXOHV GR QRW XQGHUJR R[LGDWLRQ XQOHVV DQG XQWLO 89 LQLWLDWHG WULSOHW VWDWH PROHFXOHV DUH SURGXFHG >@ $QXPEHURIODELOHVSHFLHVVXFKDV2++2&+212DQG23 UHDFW ZLWKWKHJURXQGVWDWH62PROHFXOHVLQWKHJDVSKDVHWRSURGXFHVXOSKXULFDFLG DHURVRO



7KLVUHDFWLRQLQGLFDWHVWKDWRQO\WULSOHW62LVFDWDO\WLFDOO\R[LGL]HGE\QLWULF DFLG ,W PXVW EH UHPHPEHUHG KHUH WKDW WKH JURXQG VWDWH 62 PROHFXOHV GR QRW XQGHUJR R[LGDWLRQ XQOHVV DQG XQWLO 89 LQLWLDWHG WULSOHW VWDWH PROHFXOHV DUH SURGXFHG >@ $QXPEHURIODELOHVSHFLHVVXFKDV2++2&+212DQG23 UHDFW ZLWKWKHJURXQGVWDWH62PROHFXOHVLQWKHJDVSKDVHWRSURGXFHVXOSKXULFDFLG DHURVRO

0 2+  62  o +262 



0 2+  62  o +262 



0 +262   2   o +262  Â2 



0 +262   2   o +262  Â2 



+262  Â2   +  2 o +262  2  +  2



+262  Â2   +  2 o +262  2  +  2



$WWKLVVWDJHTXDVLKHWHURJHQHRXVUHDFWLRQVWDNHSODFHLQWKHWURSRVSKHUHDQG ORZHUVWUDWRVSKHUHWRSURGXFHVXOSKXULFDFLG>@DFFRUGLQJWR

$WWKLVVWDJHTXDVLKHWHURJHQHRXVUHDFWLRQVWDNHSODFHLQWKHWURSRVSKHUHDQG ORZHUVWUDWRVSKHUHWRSURGXFHVXOSKXULFDFLG>@DFFRUGLQJWR

+262  2   12 o +262  2  12 

+262  2   12 o +262  2  12 





6HYHUDOSDWKZD\VH[LVWIRUWKHFRQYHUVLRQRI+262LQWR+62DVVKRZQEHORZ

6HYHUDOSDWKZD\VH[LVWIRUWKHFRQYHUVLRQRI+262LQWR+62DVVKRZQEHORZ

_ x o +262  2+  &  +262   +  &   _ _

_ x o +262  2+  &  +262   +  &   _ _





+262  2  12 o +262  212  +  2 o +262  2+  +212



+262  2  12 o +262  212  +  2 o +262  2+  +212



+ 2 12 +262 212  +262 2 o o +262  2+  +12  



+ 2 12 +262 212  +262 2 o o +262  2+  +12  



0 +262  2  o +2   62



0 +262  2  o +2   62



+2   12 o 2+  12 



+2   12 o 2+  12 



+2   +  2 o + 62 



+2   +  2 o + 62 



62   &+ &+22 o &+ &+2  62 



62   &+ &+22 o &+ &+2  62 



62   +  2 o + 62 



62   +  2 o + 62 



 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

6XOSKXUR[LGH62 UHDFWVZLWKDQRWKHU62PROHFXOHWRJLYH

6XOSKXUR[LGH62 UHDFWVZLWKDQRWKHU62PROHFXOHWRJLYH

62  62  o 62  6



62  62  o 62  6



7KHSKRWRR[LGDWLRQRI62LVPXFKIDVWHULQWKHSROOXWHGDWPRVSKHUHFRQWDLQLQJ K\GURFDUERQV DQG 12[Â

7KHSKRWRR[LGDWLRQRI62LVPXFKIDVWHULQWKHSROOXWHGDWPRVSKHUHFRQWDLQLQJ K\GURFDUERQV DQG 12[Â

62  %  12 o 62  12  o 62  12

62  %  12 o 62  12  o 62  12



7KLVUHDFWLRQLQGLFDWHVWKDWRQO\WULSOHW62LVFDWDO\WLFDOO\R[LGL]HGE\QLWULF DFLG ,W PXVW EH UHPHPEHUHG KHUH WKDW WKH JURXQG VWDWH 62 PROHFXOHV GR QRW XQGHUJR R[LGDWLRQ XQOHVV DQG XQWLO 89 LQLWLDWHG WULSOHW VWDWH PROHFXOHV DUH SURGXFHG >@ $QXPEHURIODELOHVSHFLHVVXFKDV2++2&+212DQG23 UHDFW ZLWKWKHJURXQGVWDWH62PROHFXOHVLQWKHJDVSKDVHWRSURGXFHVXOSKXULFDFLG DHURVRO



7KLVUHDFWLRQLQGLFDWHVWKDWRQO\WULSOHW62LVFDWDO\WLFDOO\R[LGL]HGE\QLWULF DFLG ,W PXVW EH UHPHPEHUHG KHUH WKDW WKH JURXQG VWDWH 62 PROHFXOHV GR QRW XQGHUJR R[LGDWLRQ XQOHVV DQG XQWLO 89 LQLWLDWHG WULSOHW VWDWH PROHFXOHV DUH SURGXFHG >@ $QXPEHURIODELOHVSHFLHVVXFKDV2++2&+212DQG23 UHDFW ZLWKWKHJURXQGVWDWH62PROHFXOHVLQWKHJDVSKDVHWRSURGXFHVXOSKXULFDFLG DHURVRO

0 2+  62  o +262 



0 2+  62  o +262 



0 +262   2   o +262  Â2 



0 +262   2   o +262  Â2 



+262  Â2   +  2 o +262  2  +  2



+262  Â2   +  2 o +262  2  +  2



$WWKLVVWDJHTXDVLKHWHURJHQHRXVUHDFWLRQVWDNHSODFHLQWKHWURSRVSKHUHDQG ORZHUVWUDWRVSKHUHWRSURGXFHVXOSKXULFDFLG>@DFFRUGLQJWR

$WWKLVVWDJHTXDVLKHWHURJHQHRXVUHDFWLRQVWDNHSODFHLQWKHWURSRVSKHUHDQG ORZHUVWUDWRVSKHUHWRSURGXFHVXOSKXULFDFLG>@DFFRUGLQJWR

+262  2   12 o +262  2  12 

+262  2   12 o +262  2  12 





6HYHUDOSDWKZD\VH[LVWIRUWKHFRQYHUVLRQRI+262LQWR+62DVVKRZQEHORZ

6HYHUDOSDWKZD\VH[LVWIRUWKHFRQYHUVLRQRI+262LQWR+62DVVKRZQEHORZ

_ x o +262  2+  &  +262   +  &   _ _

_ x o +262  2+  &  +262   +  &   _ _





+262  2  12 o +262  212  +  2 o +262  2+  +212



+262  2  12 o +262  212  +  2 o +262  2+  +212



+ 2 12 +262 212  +262 2 o o +262  2+  +12  



+ 2 12 +262 212  +262 2 o o +262  2+  +12  



0 +262  2  o +2   62



0 +262  2  o +2   62



+2   12 o 2+  12 



+2   12 o 2+  12 



+2   +  2 o + 62 



+2   +  2 o + 62 



62   &+ &+22 o &+ &+2  62 



62   &+ &+22 o &+ &+2  62 



62   +  2 o + 62 



62   +  2 o + 62 



$FLG5DLQ



7KHSUHVHQFHRIDTXHRXVGURSOHWVLQWKHIRUPRIDHURVROVFORXGVIRJVDQG UDLQSURYLGHVDQRWKHUSKDVHIRU62R[LGDWLRQ7KXV62JDVGLVVROYHVLQZDWHUWR VHWXSVHYHUDOHTXLOLEULDLQYROYLQJK\GUDWHG62ELVXOSKDWHLRQDQGVXOSKLWHLRQVDV VKRZQEHORZ

$FLG5DLQ



7KHSUHVHQFHRIDTXHRXVGURSOHWVLQWKHIRUPRIDHURVROVFORXGVIRJVDQG UDLQSURYLGHVDQRWKHUSKDVHIRU62R[LGDWLRQ7KXV62JDVGLVVROYHVLQZDWHUWR VHWXSVHYHUDOHTXLOLEULDLQYROYLQJK\GUDWHG62ELVXOSKDWHLRQDQGVXOSKLWHLRQVDV VKRZQEHORZ

62  J  +  2 62  +  2 

.  0 DWP 



62  J  +  2 62  +  2 

.  0 DWP 



62  +  2 +62  +  

.  u  0



62  +  2 +62  +  

.  u  0



+62 62   +  +62

.

 u  0



+62 62   +  +62

.

 u  0



,Q WKH JDV SKDVH 62 FRQFHQWUDWLRQ UDQJHV IURP ± SSE ,Q ± S+ UDQJH±±± PROHV/±RI62 LVDQWLFLSDWHG$OOWKHVHUHDFWLRQVDUHIDLUO\ UDSLGDQGDWDQ\WLPHDOOWKHVSHFLHVLH+62+62±DQG62 ZLOOEHSUHVHQW LQHTXLOLEULXPFRQFHQWUDWLRQV,WLVFXVWRPDU\WRGHQRWHDOOWKHWKUHHVSHFLHVDV 62,9 

,Q WKH JDV SKDVH 62 FRQFHQWUDWLRQ UDQJHV IURP ± SSE ,Q ± S+ UDQJH±±± PROHV/±RI62 LVDQWLFLSDWHG$OOWKHVHUHDFWLRQVDUHIDLUO\ UDSLGDQGDWDQ\WLPHDOOWKHVSHFLHVLH+62+62±DQG62 ZLOOEHSUHVHQW LQHTXLOLEULXPFRQFHQWUDWLRQV,WLVFXVWRPDU\WRGHQRWHDOOWKHWKUHHVSHFLHVDV 62,9 

6,9 62  Â+  2  +62  62

6,9 62  Â+  2  +62  62



7KHNLQHWLFVRIR[LGDWLRQLVFRQWUROOHGE\VHYHUDOWUDQVSRUWSURFHVVHVRFFXUULQJ DFURVV DLUZDWHU LQWHUSKDVH 7KH HTXLOLEULXP UHDFWLRQV LQ WKH GURSOHW DUH VKRZQ EHORZ



7KHNLQHWLFVRIR[LGDWLRQLVFRQWUROOHGE\VHYHUDOWUDQVSRUWSURFHVVHVRFFXUULQJ DFURVV DLUZDWHU LQWHUSKDVH 7KH HTXLOLEULXP UHDFWLRQV LQ WKH GURSOHW DUH VKRZQ EHORZ

7 7 62  J  o 62  O  +  2  o 62  Â+  2 l +62 l 62



7 7 62  J  o 62  O  +  2  o 62  Â+  2 l +62 l 62



7 R[LGDWLRQ 62  Â+  2 l +62 l 62  o 69,



7 R[LGDWLRQ 62  Â+  2 l +62 l 62  o 69,



SO2 (g)

(1)

SO2 (g)

(1)

Transport to droplet surface

SO2 (l) Transport across Air-water

SO2 (l) Transport across Air-water

(2)

(2)

SO2, H2O (3)

Transport to droplet surface

SO2, H2O

Establis

HS O hm 3 en to

(3)

Establis

HS O hm 3 en to

Oxidation S(IV)

)LJ6FKHPDWLFVRI+62IRUPDWLRQ

(5)

2– SO 3

Transport into bulk

bria quili

Phase S(VI)

)e (IV

bria quili

(5)

(4)

2– SO 3

)e (IV

Transport into bulk

Oxidation S(IV)

fS

fS

(4)

Phase S(VI)

)LJ6FKHPDWLFVRI+62IRUPDWLRQ

$FLG5DLQ



7KHSUHVHQFHRIDTXHRXVGURSOHWVLQWKHIRUPRIDHURVROVFORXGVIRJVDQG UDLQSURYLGHVDQRWKHUSKDVHIRU62R[LGDWLRQ7KXV62JDVGLVVROYHVLQZDWHUWR VHWXSVHYHUDOHTXLOLEULDLQYROYLQJK\GUDWHG62ELVXOSKDWHLRQDQGVXOSKLWHLRQVDV VKRZQEHORZ

$FLG5DLQ



7KHSUHVHQFHRIDTXHRXVGURSOHWVLQWKHIRUPRIDHURVROVFORXGVIRJVDQG UDLQSURYLGHVDQRWKHUSKDVHIRU62R[LGDWLRQ7KXV62JDVGLVVROYHVLQZDWHUWR VHWXSVHYHUDOHTXLOLEULDLQYROYLQJK\GUDWHG62ELVXOSKDWHLRQDQGVXOSKLWHLRQVDV VKRZQEHORZ

62  J  +  2 62  +  2 

.  0 DWP 



62  J  +  2 62  +  2 

.  0 DWP 



62  +  2 +62  +  

.  u  0



62  +  2 +62  +  

.  u  0



+62 62   +  +62

.

 u  0



+62 62   +  +62

.

 u  0



,Q WKH JDV SKDVH 62 FRQFHQWUDWLRQ UDQJHV IURP ± SSE ,Q ± S+ UDQJH±±± PROHV/±RI62 LVDQWLFLSDWHG$OOWKHVHUHDFWLRQVDUHIDLUO\ UDSLGDQGDWDQ\WLPHDOOWKHVSHFLHVLH+62+62±DQG62 ZLOOEHSUHVHQW LQHTXLOLEULXPFRQFHQWUDWLRQV,WLVFXVWRPDU\WRGHQRWHDOOWKHWKUHHVSHFLHVDV 62,9 

,Q WKH JDV SKDVH 62 FRQFHQWUDWLRQ UDQJHV IURP ± SSE ,Q ± S+ UDQJH±±± PROHV/±RI62 LVDQWLFLSDWHG$OOWKHVHUHDFWLRQVDUHIDLUO\ UDSLGDQGDWDQ\WLPHDOOWKHVSHFLHVLH+62+62±DQG62 ZLOOEHSUHVHQW LQHTXLOLEULXPFRQFHQWUDWLRQV,WLVFXVWRPDU\WRGHQRWHDOOWKHWKUHHVSHFLHVDV 62,9 

6,9 62  Â+  2  +62  62

6,9 62  Â+  2  +62  62



7KHNLQHWLFVRIR[LGDWLRQLVFRQWUROOHGE\VHYHUDOWUDQVSRUWSURFHVVHVRFFXUULQJ DFURVV DLUZDWHU LQWHUSKDVH 7KH HTXLOLEULXP UHDFWLRQV LQ WKH GURSOHW DUH VKRZQ EHORZ



7KHNLQHWLFVRIR[LGDWLRQLVFRQWUROOHGE\VHYHUDOWUDQVSRUWSURFHVVHVRFFXUULQJ DFURVV DLUZDWHU LQWHUSKDVH 7KH HTXLOLEULXP UHDFWLRQV LQ WKH GURSOHW DUH VKRZQ EHORZ

7 7 62  J  o 62  O  +  2  o 62  Â+  2 l +62 l 62



7 7 62  J  o 62  O  +  2  o 62  Â+  2 l +62 l 62



7 R[LGDWLRQ 62  Â+  2 l +62 l 62  o 69,



7 R[LGDWLRQ 62  Â+  2 l +62 l 62  o 69,



SO2 (g)

(1)

SO2 (g)

(1)

Transport to droplet surface

SO2 (l) Transport across Air-water

SO2 (l) Transport across Air-water

(2)

(2)

SO2, H2O (3)

Transport to droplet surface

SO2, H2O

Establis

HS

(3)

O hm 3 en to

Establis

HS O hm 3 en to

Phase S(VI)

)LJ6FKHPDWLFVRI+62IRUPDWLRQ

2– SO 3

(5)

bria quili

)LJ6FKHPDWLFVRI+62IRUPDWLRQ

Transport into bulk

Oxidation S(IV)

)e (IV

Phase S(VI)

(4)

2– SO 3

bria quili

(5)

)e (IV

Transport into bulk

Oxidation S(IV)

fS

fS

(4)

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7KHHVVHQWLDOVWHSVLQYROYHGLQWKHWUDQVSRUWDQGWKHLUDSSUR[LPDWHWLPHGXUDWLRQ DUHJLYHQEHORZ

7KHHVVHQWLDOVWHSVLQYROYHGLQWKHWUDQVSRUWDQGWKHLUDSSUR[LPDWHWLPHGXUDWLRQ DUHJLYHQEHORZ

   

7UDQVSRUWRIJDVWRWKHVXUIDFHRIWKHGURSOHW7 ±±±VHF 7UDQVIHURIJDVDFURVVDLUOLTXLGLQWHUSKDVH±±±VHF $TXHRXVHTXLOLEULDPLOOLVHFRQGV 0ROHFXODUGLIIXVLRQLQWRWKHDTXHRXVSKDVH±VHF±VHFIRUGURSUDGLL  ±±±FP  $GGLWLRQDOUHDFWLRQVLQWKHGURSOHWV

7UDQVSRUWRIJDVWRWKHVXUIDFHRIWKHGURSOHW7 ±±±VHF 7UDQVIHURIJDVDFURVVDLUOLTXLGLQWHUSKDVH±±±VHF $TXHRXVHTXLOLEULDPLOOLVHFRQGV 0ROHFXODUGLIIXVLRQLQWRWKHDTXHRXVSKDVH±VHF±VHFIRUGURSUDGLL  ±±±FP  $GGLWLRQDOUHDFWLRQVLQWKHGURSOHWV

 5($&7,216 ,1 7+( '523/(76

 5($&7,216 ,1 7+( '523/(76

$KRVWRIUHDFWLRQVWDNHSODFHDWPLFURVFDOHLQWKHUDLQZDWHUGURSOHW0DMRULW\RI WKHPDUHR[LGDWLRQUHDFWLRQVRFFXUULQJGXHWRWKHSUHVHQFHRIR]RQHDQGK\GURJHQ SHUR[LGH:KLOHR]RQHLVQDWXUDOO\SUHVHQWLQWKHDWPRVSKHUHK\GURJHQSHUR[LGHLV V\QWKHVL]HGDFFRUGLQJWRWKHUHDFWLRQ

$KRVWRIUHDFWLRQVWDNHSODFHDWPLFURVFDOHLQWKHUDLQZDWHUGURSOHW0DMRULW\RI WKHPDUHR[LGDWLRQUHDFWLRQVRFFXUULQJGXHWRWKHSUHVHQFHRIR]RQHDQGK\GURJHQ SHUR[LGH:KLOHR]RQHLVQDWXUDOO\SUHVHQWLQWKHDWPRVSKHUHK\GURJHQSHUR[LGHLV V\QWKHVL]HGDFFRUGLQJWRWKHUHDFWLRQ

+2 O d  QP 2  KQ  o +  2   2 

+2 O d  QP 2  KQ  o +  2   2 



7KHSKRWRO\VLVRI+2JLYHVWKHK\GUR[\OUDGLFDO

O d  QP

x

D

 . E ª¬2+  º¼ ª¬ +62 º¼ ª¬2 º¼

O d  QP



,QDQ\GURSOHWWKHDFWXDOFRQFHQWUDWLRQVRIR]RQHDQG+2GHSHQGXSRQWKH SUHVHQFH DQG FRQFHQWUDWLRQ RI RWKHU UHDFWLYH VSHFLHV VXFK DV 2+± +2± 2+ 12± +62± +&2± DQG 62  HWF 5HSUHVHQWDWLYH UHDFWLRQV DUH VKRZQ LQ 7DEOH )RUHDFKXQLWS+LQFUHDVHWKHUDWHFRQVWDQWIRUWKHVHUHDFWLRQVLQFUHDVHVE\ RQHRUGHUXSWRS+7KHRYHUDOOUDWHHTXDWLRQIRUR]RQHLQS+UDQJHRI ±  FDQEHUHSUHVHQWHGDV

.



7KHSKRWRO\VLVRI+2JLYHVWKHK\GUR[\OUDGLFDO

+  2  K Q o 2+

G>2 @ GW

   



x



+  2  K Q o 2+

,QDQ\GURSOHWWKHDFWXDOFRQFHQWUDWLRQVRIR]RQHDQG+2GHSHQGXSRQWKH SUHVHQFH DQG FRQFHQWUDWLRQ RI RWKHU UHDFWLYH VSHFLHV VXFK DV 2+± +2± 2+ 12± +62± +&2± DQG 62  HWF 5HSUHVHQWDWLYH UHDFWLRQV DUH VKRZQ LQ 7DEOH )RUHDFKXQLWS+LQFUHDVHWKHUDWHFRQVWDQWIRUWKHVHUHDFWLRQVLQFUHDVHVE\ RQHRUGHUXSWRS+7KHRYHUDOOUDWHHTXDWLRQIRUR]RQHLQS+UDQJHRI ±  FDQEHUHSUHVHQWHGDV G>2 @ GW



.

D

 . E ª¬2+  º¼ ª¬ +62 º¼ ª¬2 º¼





ZKHUH.DLVî0±V± DQG.ELVî0V±DWR&

ZKHUH.DLVî0±V± DQG.ELVî0V±DWR&

+RZHYHUDOOWKHVHUHDFWLRQVDUHQRWLQFOXGHGLQWKHPRGHOVRIWKHDWPRVSKHULF GURSOHW UHDFWLRQV SUHVXPDEO\ EHFDXVH RI WKHLU ORZ WR PRGHUDWH UDWH FRQVWDQWV (YHQLIZHFRQVLGHUWKHORZRUJDQLFFRQFHQWUDWLRQVWRJHWKHUZHJHWORZRYHUDOO UDWHVWRKDYHDQ\VLJQLILFDQWHIIHFW $GVRUSWLRQRI62RQWKHVXUIDFHRIVROLGVDWWDFKHGWRWKHGURSOHWVSURYLGHVD WKLUGKHWHURJHQRXVURXWHIRUWKHIRUPDWLRQRIVXOSKXULFDFLG7KHUHLVDQDEXQGDQFH RISDUWLFOHVLQWKHDWPRVSKHUHVXFKDVFDUERQSDUWLFOHVIO\DVKGXVW0J2)H2 920Q2HWFZKLFKDUHNQRZQWRR[LGL]H6,9 WR9, 7KHUDWHRI62

+RZHYHUDOOWKHVHUHDFWLRQVDUHQRWLQFOXGHGLQWKHPRGHOVRIWKHDWPRVSKHULF GURSOHW UHDFWLRQV SUHVXPDEO\ EHFDXVH RI WKHLU ORZ WR PRGHUDWH UDWH FRQVWDQWV (YHQLIZHFRQVLGHUWKHORZRUJDQLFFRQFHQWUDWLRQVWRJHWKHUZHJHWORZRYHUDOO UDWHVWRKDYHDQ\VLJQLILFDQWHIIHFW $GVRUSWLRQRI62RQWKHVXUIDFHRIVROLGVDWWDFKHGWRWKHGURSOHWVSURYLGHVD WKLUGKHWHURJHQRXVURXWHIRUWKHIRUPDWLRQRIVXOSKXULFDFLG7KHUHLVDQDEXQGDQFH RISDUWLFOHVLQWKHDWPRVSKHUHVXFKDVFDUERQSDUWLFOHVIO\DVKGXVW0J2)H2 920Q2HWFZKLFKDUHNQRZQWRR[LGL]H6,9 WR9, 7KHUDWHRI62

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7KHHVVHQWLDOVWHSVLQYROYHGLQWKHWUDQVSRUWDQGWKHLUDSSUR[LPDWHWLPHGXUDWLRQ DUHJLYHQEHORZ

7KHHVVHQWLDOVWHSVLQYROYHGLQWKHWUDQVSRUWDQGWKHLUDSSUR[LPDWHWLPHGXUDWLRQ DUHJLYHQEHORZ

   

7UDQVSRUWRIJDVWRWKHVXUIDFHRIWKHGURSOHW7 ±±±VHF 7UDQVIHURIJDVDFURVVDLUOLTXLGLQWHUSKDVH±±±VHF $TXHRXVHTXLOLEULDPLOOLVHFRQGV 0ROHFXODUGLIIXVLRQLQWRWKHDTXHRXVSKDVH±VHF±VHFIRUGURSUDGLL  ±±±FP  $GGLWLRQDOUHDFWLRQVLQWKHGURSOHWV

7UDQVSRUWRIJDVWRWKHVXUIDFHRIWKHGURSOHW7 ±±±VHF 7UDQVIHURIJDVDFURVVDLUOLTXLGLQWHUSKDVH±±±VHF $TXHRXVHTXLOLEULDPLOOLVHFRQGV 0ROHFXODUGLIIXVLRQLQWRWKHDTXHRXVSKDVH±VHF±VHFIRUGURSUDGLL  ±±±FP  $GGLWLRQDOUHDFWLRQVLQWKHGURSOHWV

 5($&7,216 ,1 7+( '523/(76

 5($&7,216 ,1 7+( '523/(76

$KRVWRIUHDFWLRQVWDNHSODFHDWPLFURVFDOHLQWKHUDLQZDWHUGURSOHW0DMRULW\RI WKHPDUHR[LGDWLRQUHDFWLRQVRFFXUULQJGXHWRWKHSUHVHQFHRIR]RQHDQGK\GURJHQ SHUR[LGH:KLOHR]RQHLVQDWXUDOO\SUHVHQWLQWKHDWPRVSKHUHK\GURJHQSHUR[LGHLV V\QWKHVL]HGDFFRUGLQJWRWKHUHDFWLRQ

$KRVWRIUHDFWLRQVWDNHSODFHDWPLFURVFDOHLQWKHUDLQZDWHUGURSOHW0DMRULW\RI WKHPDUHR[LGDWLRQUHDFWLRQVRFFXUULQJGXHWRWKHSUHVHQFHRIR]RQHDQGK\GURJHQ SHUR[LGH:KLOHR]RQHLVQDWXUDOO\SUHVHQWLQWKHDWPRVSKHUHK\GURJHQSHUR[LGHLV V\QWKHVL]HGDFFRUGLQJWRWKHUHDFWLRQ

+2 O d  QP 2  KQ  o +  2   2 

+2 O d  QP 2  KQ  o +  2   2 



7KHSKRWRO\VLVRI+2JLYHVWKHK\GUR[\OUDGLFDO

O d  QP

x



,QDQ\GURSOHWWKHDFWXDOFRQFHQWUDWLRQVRIR]RQHDQG+2GHSHQGXSRQWKH SUHVHQFH DQG FRQFHQWUDWLRQ RI RWKHU UHDFWLYH VSHFLHV VXFK DV 2+± +2± 2+ 12± +62± +&2± DQG 62  HWF 5HSUHVHQWDWLYH UHDFWLRQV DUH VKRZQ LQ 7DEOH )RUHDFKXQLWS+LQFUHDVHWKHUDWHFRQVWDQWIRUWKHVHUHDFWLRQVLQFUHDVHVE\ RQHRUGHUXSWRS+7KHRYHUDOOUDWHHTXDWLRQIRUR]RQHLQS+UDQJHRI ±  FDQEHUHSUHVHQWHGDV

.

D



7KHSKRWRO\VLVRI+2JLYHVWKHK\GUR[\OUDGLFDO

+  2  K Q o 2+

G>2 @ GW

   

 . E ª¬2+  º¼ ª¬ +62 º¼ ª¬2 º¼





O d  QP

x



+  2  K Q o 2+

,QDQ\GURSOHWWKHDFWXDOFRQFHQWUDWLRQVRIR]RQHDQG+2GHSHQGXSRQWKH SUHVHQFH DQG FRQFHQWUDWLRQ RI RWKHU UHDFWLYH VSHFLHV VXFK DV 2+± +2± 2+ 12± +62± +&2± DQG 62  HWF 5HSUHVHQWDWLYH UHDFWLRQV DUH VKRZQ LQ 7DEOH )RUHDFKXQLWS+LQFUHDVHWKHUDWHFRQVWDQWIRUWKHVHUHDFWLRQVLQFUHDVHVE\ RQHRUGHUXSWRS+7KHRYHUDOOUDWHHTXDWLRQIRUR]RQHLQS+UDQJHRI ±  FDQEHUHSUHVHQWHGDV G>2 @ GW

.

D

 . E ª¬2+  º¼ ª¬ +62 º¼ ª¬2 º¼





ZKHUH.DLVî0±V± DQG.ELVî0V±DWR&

ZKHUH.DLVî0±V± DQG.ELVî0V±DWR&

+RZHYHUDOOWKHVHUHDFWLRQVDUHQRWLQFOXGHGLQWKHPRGHOVRIWKHDWPRVSKHULF GURSOHW UHDFWLRQV SUHVXPDEO\ EHFDXVH RI WKHLU ORZ WR PRGHUDWH UDWH FRQVWDQWV (YHQLIZHFRQVLGHUWKHORZRUJDQLFFRQFHQWUDWLRQVWRJHWKHUZHJHWORZRYHUDOO UDWHVWRKDYHDQ\VLJQLILFDQWHIIHFW $GVRUSWLRQRI62RQWKHVXUIDFHRIVROLGVDWWDFKHGWRWKHGURSOHWVSURYLGHVD WKLUGKHWHURJHQRXVURXWHIRUWKHIRUPDWLRQRIVXOSKXULFDFLG7KHUHLVDQDEXQGDQFH RISDUWLFOHVLQWKHDWPRVSKHUHVXFKDVFDUERQSDUWLFOHVIO\DVKGXVW0J2)H2 920Q2HWFZKLFKDUHNQRZQWRR[LGL]H6,9 WR9, 7KHUDWHRI62

+RZHYHUDOOWKHVHUHDFWLRQVDUHQRWLQFOXGHGLQWKHPRGHOVRIWKHDWPRVSKHULF GURSOHW UHDFWLRQV SUHVXPDEO\ EHFDXVH RI WKHLU ORZ WR PRGHUDWH UDWH FRQVWDQWV (YHQLIZHFRQVLGHUWKHORZRUJDQLFFRQFHQWUDWLRQVWRJHWKHUZHJHWORZRYHUDOO UDWHVWRKDYHDQ\VLJQLILFDQWHIIHFW $GVRUSWLRQRI62RQWKHVXUIDFHRIVROLGVDWWDFKHGWRWKHGURSOHWVSURYLGHVD WKLUGKHWHURJHQRXVURXWHIRUWKHIRUPDWLRQRIVXOSKXULFDFLG7KHUHLVDQDEXQGDQFH RISDUWLFOHVLQWKHDWPRVSKHUHVXFKDVFDUERQSDUWLFOHVIO\DVKGXVW0J2)H2 920Q2HWFZKLFKDUHNQRZQWRR[LGL]H6,9 WR9, 7KHUDWHRI62

$FLG5DLQ



7DEOH,RQLFDQGIUHHUDGLFDOUHDFWLRQVLQWKHDWPRVSKHULFZDWHUGURSOHWV

$FLG5DLQ 7DEOH,RQLFDQGIUHHUDGLFDOUHDFWLRQVLQWKHDWPRVSKHULFZDWHUGURSOHWV

5HDFWLRQV

5DWHFRQVWDQWOPRO±V±

5HDFWLRQV

5DWHFRQVWDQWOPRO±V±

2   2+  o +2   2 

î

2   2+  o +2   2 

î

2   +2   o +2  2 

î

2   +2   o +2  2 

î

2  2+ o +2   2 

î

2  2+ o +2   2 

î

2  +2  o 2+  2

î

2  +2  o 2+  2

î

2  12   o 12   2 

î

2  12   o 12   2 

î

2   +62   2+  o 62     + 2  2 

îPV±

2   +62   2+  o 62     + 2  2 

îPV±

2   +&2 o +2    &2  + 2 

&2

o +&2  +2 

+  2   2+ o +2   +  2

 + 2  +212  o +12  +  2

±



+ 2 

î

+  2   2+ o +2   +  2

o +&2  +2 

î î

+  2   +62 o +62    +  2

±



&2

î

+  2   +62 o +62    +  2 + 2

2   +&2 o +2    &2 

±





±



 + 2  +212  o +12  +  2

+ 2

î>+@

î>+@

5 x  2  o 52 

±

5 x  2  o 52 

±

52  12 o 52  12

±

52  12 o 52  12

±

52  +2 o 522+  2

±

52  +2 o 522+  2

±

522+  +62 o +62   52+

±

522+  +62 o +62   52+

±

+62  2+ o +2  62

î

+62  2+ o +2  62

î

62  2  o 62 

î

62  2  o 62 

î

62 o 62    62    2 

î

62 o 62    62    2 

î

62    +&2 o 62     + 2   &2

î

62    +&2 o 62     + 2   &2

î

62    +  2  o +62    +2 

î

62    +  2  o +62    +2 

î

62    &O  o 62    &O

î

62    &O  o 62    &O

î

+62  12   +  2 o + 2   12   62  

±

+62  12   +  2 o + 2   12   62  

±

UHPRYDOGHSHQGVRQWKHQDWXUHRIWKHSDUWLFOHSUHVHQFHRIRWKHULPSXULWLHVUHODWLYH KXPLGLW\DQGDWPRVSKHULFWHPSHUDWXUH

UHPRYDOGHSHQGVRQWKHQDWXUHRIWKHSDUWLFOHSUHVHQFHRIRWKHULPSXULWLHVUHODWLYH KXPLGLW\DQGDWPRVSKHULFWHPSHUDWXUH

 2;,'$7,21 2) 12 72 1,75,& $&,'

 2;,'$7,21 2) 12 72 1,75,& $&,'

1LWULFR[LGH12 DQGQLWURJHQGLR[LGH12 DUHUHOHDVHGLQWRWKHDWPRVSKHUHE\ WKHFRPEXVWLRQRIIRVVLOIXHOV$QRWKHUPDMRUVRXUFHIRUQLWURJHQR[LGHVLVIURP

1LWULFR[LGH12 DQGQLWURJHQGLR[LGH12 DUHUHOHDVHGLQWRWKHDWPRVSKHUHE\ WKHFRPEXVWLRQRIIRVVLOIXHOV$QRWKHUPDMRUVRXUFHIRUQLWURJHQR[LGHVLVIURP

$FLG5DLQ



7DEOH,RQLFDQGIUHHUDGLFDOUHDFWLRQVLQWKHDWPRVSKHULFZDWHUGURSOHWV

$FLG5DLQ 7DEOH,RQLFDQGIUHHUDGLFDOUHDFWLRQVLQWKHDWPRVSKHULFZDWHUGURSOHWV

5HDFWLRQV

5DWHFRQVWDQWOPRO±V±

5HDFWLRQV

5DWHFRQVWDQWOPRO±V±

2   2+  o +2   2 

î

2   2+  o +2   2 

î

2   +2   o +2  2 

î

2   +2   o +2  2 

î

2  2+ o +2   2 

î

2  2+ o +2   2 

î

2  +2  o 2+  2

î

2  +2  o 2+  2

î

2  12   o 12   2 

î

2  12   o 12   2 

î

2   +62   2+  o 62     + 2  2 

îPV±

2   +62   2+  o 62     + 2  2 

îPV±

2   +&2 o +2    &2  + 2 

&2

±



o +&2  +2 

+  2   2+ o +2   +  2

+ 2  +212 o +12  +  2

&2

î

+  2   2+ o +2   +  2

î>+@

±



+ 2 

±

+ 2 

2   +&2 o +2    &2 

î

+  2   +62 o +62    +  2

o +&2  +2 

î î

+  2   +62 o +62    +  2

±

+ 2 

+ 2  +212 o +12  +  2

î>+@

5 x  2  o 52 

±

5 x  2  o 52 

±

52  12 o 52  12

±

52  12 o 52  12

±

52  +2 o 522+  2

±

52  +2 o 522+  2

±

522+  +62 o +62   52+

±

522+  +62 o +62   52+

±

+62  2+ o +2  62

î

+62  2+ o +2  62

î

62  2  o 62 

î

62  2  o 62 

î

62 o 62    62    2 

î

62 o 62    62    2 



62  

+&2

o 62 





 + 2  &2







+&2

o 62 



î 

 + 2  &2



î

62  

62    +  2  o +62    +2 

î

62    +  2  o +62    +2 

î

62    &O  o 62    &O

î

62    &O  o 62    &O

î

+62  12   +  2 o + 2   12   62  

±

+62  12   +  2 o + 2   12   62  

±

î

UHPRYDOGHSHQGVRQWKHQDWXUHRIWKHSDUWLFOHSUHVHQFHRIRWKHULPSXULWLHVUHODWLYH KXPLGLW\DQGDWPRVSKHULFWHPSHUDWXUH

UHPRYDOGHSHQGVRQWKHQDWXUHRIWKHSDUWLFOHSUHVHQFHRIRWKHULPSXULWLHVUHODWLYH KXPLGLW\DQGDWPRVSKHULFWHPSHUDWXUH

 2;,'$7,21 2) 12 72 1,75,& $&,'

 2;,'$7,21 2) 12 72 1,75,& $&,'

1LWULFR[LGH12 DQGQLWURJHQGLR[LGH12 DUHUHOHDVHGLQWRWKHDWPRVSKHUHE\ WKHFRPEXVWLRQRIIRVVLOIXHOV$QRWKHUPDMRUVRXUFHIRUQLWURJHQR[LGHVLVIURP

1LWULFR[LGH12 DQGQLWURJHQGLR[LGH12 DUHUHOHDVHGLQWRWKHDWPRVSKHUHE\ WKHFRPEXVWLRQRIIRVVLOIXHOV$QRWKHUPDMRUVRXUFHIRUQLWURJHQR[LGHVLVIURP

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

DXWRPRELOHVDQGRWKHUPRWRUYHKLFOHV&RPEXVWLRQRIIXHOVR[LGL]HV± RI WKHQLWURJHQLQFRDO ±LQKHDY\RLODQGDOPRVWLQOLJKWRLODQGJDV 9HKLFOHVDFFRXQWIRUDOPRVW12[HPLVVLRQVLQWKH(XURSHDQ8QLRQDQG LQ863RZHUVWDWLRQVDFFRXQWIRU±RI12[HPLVVLRQV 0RVWRIWKHQLWULFR[LGHHPLWWHGLQWRWKHDWPRVSKHUHLVHYHQWXDOO\FRQYHUWHGWR QLWURJHQGLR[LGHZKLFKUHDFWVZLWK2+WRSURGXFHQLWULFDFLGGXULQJWKHGD\

DXWRPRELOHVDQGRWKHUPRWRUYHKLFOHV&RPEXVWLRQRIIXHOVR[LGL]HV± RI WKHQLWURJHQLQFRDO ±LQKHDY\RLODQGDOPRVWLQOLJKWRLODQGJDV 9HKLFOHVDFFRXQWIRUDOPRVW12[HPLVVLRQVLQWKH(XURSHDQ8QLRQDQG LQ863RZHUVWDWLRQVDFFRXQWIRU±RI12[HPLVVLRQV 0RVWRIWKHQLWULFR[LGHHPLWWHGLQWRWKHDWPRVSKHUHLVHYHQWXDOO\FRQYHUWHGWR QLWURJHQGLR[LGHZKLFKUHDFWVZLWK2+WRSURGXFHQLWULFDFLGGXULQJWKHGD\

0 12  2+  o +12  

.  u   FP PRO  VHF 

7KLVUHDFWLRQLVUHODWLYHO\UDSLGDQGWHQWLPHVIDVWHUWKDQ62±2+UHDFWLRQ7\SLFDO OLIHWLPHRI12LVRQHGD\FRPSDUHGWRGD\VIRU62XQGHUVLPLODUFRQGLWLRQV 7KXVPRVWRI12FRQYHUVLRQLQWRQLWULFDFLGRFFXUVQHDUHUWKHVRXUFHLWVHOI7KLV LPSOLHV WKDW 12 GRHV QRW GLIIXVH LQWR WKH WURSRVSKHUH YHUWLFDOO\  QRU LQ WKH KRUL]RQWDOGLUHFWLRQ $QRWKHULPSRUWDQWVRXUFHRIQLWULFDFLGLQWKHHQYLURQPHQWLVWKHVXEVWLWXWLRQ RIK\GURJHQIURPK\GURFDUERQVDOGHK\GHVHWF ‡

.

12  5+ o 5  +12 

12  5  &+2 o 5  &2  +12  .

 u  FP PRO VHF 



 u  FPPRO VHF  

7KHGDWDTXRWHGDERYHLVIRUIRUPDOGHK\GH2WKHUDOGHK\GHVDUHPRUHUHDFWLYH DQGWLPHVIDVWHU$W\SLFDOXUEDQDWPRVSKHUHFRQWDLQVDERXWî±PROVFP± RI K\GURFDUERQV H[FOXGLQJ PHWKDQH  î ± PROFP± RI IRUPDOGHK\GH DQG î±PROFP±RIDFHWDOGHK\GH 7KLVLVSROOXWHGDWPRVSKHUHHYHQDVDFUXGHHVWLPDWH1LJKWWLPHFRQYHUVLRQ DFFRXQWVIRUDERXW+12GXHWRWKHDEVWUDFWLRQRIK\GURJHQ,QSUHVHQFH RI12DQGR]RQHQLWUDWHUDGLFDOLVIRUPHGZKLFKLVLQHTXLOLEULXPZLWK12 2   12  o 12   2  

.

0 12  2+  o +12  



‡

12  5  &+2 o 5  &2  +12  .

 u  FP PRO VHF 



 u  FPPRO VHF  

7KHGDWDTXRWHGDERYHLVIRUIRUPDOGHK\GH2WKHUDOGHK\GHVDUHPRUHUHDFWLYH DQGWLPHVIDVWHU$W\SLFDOXUEDQDWPRVSKHUHFRQWDLQVDERXWî±PROVFP± RI K\GURFDUERQV H[FOXGLQJ PHWKDQH  î ± PROFP± RI IRUPDOGHK\GH DQG î±PROFP±RIDFHWDOGHK\GH 7KLVLVSROOXWHGDWPRVSKHUHHYHQDVDFUXGHHVWLPDWH1LJKWWLPHFRQYHUVLRQ DFFRXQWVIRUDERXW+12GXHWRWKHDEVWUDFWLRQRIK\GURJHQ,QSUHVHQFH RI12DQGR]RQHQLWUDWHUDGLFDOLVIRUPHGZKLFKLVLQHTXLOLEULXPZLWK12 2   12  o 12   2  

.

 u   FP PRO  VHF  

12   12  1  2



1  2  +  2 +12 

.  u  FPPRO VHF  

7DEOH)RUPDWLRQFRQVWDQWVRI+12

.

12  5+ o 5  +12 



1  2  +  2 +12 



7KLVUHDFWLRQLVUHODWLYHO\UDSLGDQGWHQWLPHVIDVWHUWKDQ62±2+UHDFWLRQ7\SLFDO OLIHWLPHRI12LVRQHGD\FRPSDUHGWRGD\VIRU62XQGHUVLPLODUFRQGLWLRQV 7KXVPRVWRI12FRQYHUVLRQLQWRQLWULFDFLGRFFXUVQHDUHUWKHVRXUFHLWVHOI7KLV LPSOLHV WKDW 12 GRHV QRW GLIIXVH LQWR WKH WURSRVSKHUH YHUWLFDOO\  QRU LQ WKH KRUL]RQWDOGLUHFWLRQ $QRWKHULPSRUWDQWVRXUFHRIQLWULFDFLGLQWKHHQYLURQPHQWLVWKHVXEVWLWXWLRQ RIK\GURJHQIURPK\GURFDUERQVDOGHK\GHVHWF

 u   FP PRO  VHF  

12   12  1  2

.  u   FP PRO  VHF 

.  u  FPPRO VHF  

7DEOH)RUPDWLRQFRQVWDQWVRI+12

&RPSRXQG

$WPRVSKHULF FRQFHQWUDWLRQ

+12IRUPDWLRQ UDWH QLJKW PROHVFP±V±

3URGXFWLRQ SSEKU

3URGXF WLRQUDWH GD\WLPH

3URGXF WLRQ SSEKU

&RPSRXQG

$WPRVSKHULF FRQFHQWUDWLRQ

+12IRUPDWLRQ UDWH QLJKW PROHVFP±V±

3URGXFWLRQ SSEKU

3URGXF WLRQUDWH GD\WLPH

3URGXF WLRQ SSEKU

&+

î±

±

±

±

±

&+

î±

±

±

±

±

+&+2

î±

î



î



+&+2

î±

î



î



&+&+2

î±

î



î



&+&+2

î±

î



î



12

î±

î



±

±

12

î±

î



±

±

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

DXWRPRELOHVDQGRWKHUPRWRUYHKLFOHV&RPEXVWLRQRIIXHOVR[LGL]HV± RI WKHQLWURJHQLQFRDO ±LQKHDY\RLODQGDOPRVWLQOLJKWRLODQGJDV 9HKLFOHVDFFRXQWIRUDOPRVW12[HPLVVLRQVLQWKH(XURSHDQ8QLRQDQG LQ863RZHUVWDWLRQVDFFRXQWIRU±RI12[HPLVVLRQV 0RVWRIWKHQLWULFR[LGHHPLWWHGLQWRWKHDWPRVSKHUHLVHYHQWXDOO\FRQYHUWHGWR QLWURJHQGLR[LGHZKLFKUHDFWVZLWK2+WRSURGXFHQLWULFDFLGGXULQJWKHGD\

DXWRPRELOHVDQGRWKHUPRWRUYHKLFOHV&RPEXVWLRQRIIXHOVR[LGL]HV± RI WKHQLWURJHQLQFRDO ±LQKHDY\RLODQGDOPRVWLQOLJKWRLODQGJDV 9HKLFOHVDFFRXQWIRUDOPRVW12[HPLVVLRQVLQWKH(XURSHDQ8QLRQDQG LQ863RZHUVWDWLRQVDFFRXQWIRU±RI12[HPLVVLRQV 0RVWRIWKHQLWULFR[LGHHPLWWHGLQWRWKHDWPRVSKHUHLVHYHQWXDOO\FRQYHUWHGWR QLWURJHQGLR[LGHZKLFKUHDFWVZLWK2+WRSURGXFHQLWULFDFLGGXULQJWKHGD\

0 12  2+  o +12  

.  u   FP PRO  VHF 

7KLVUHDFWLRQLVUHODWLYHO\UDSLGDQGWHQWLPHVIDVWHUWKDQ62±2+UHDFWLRQ7\SLFDO OLIHWLPHRI12LVRQHGD\FRPSDUHGWRGD\VIRU62XQGHUVLPLODUFRQGLWLRQV 7KXVPRVWRI12FRQYHUVLRQLQWRQLWULFDFLGRFFXUVQHDUHUWKHVRXUFHLWVHOI7KLV LPSOLHV WKDW 12 GRHV QRW GLIIXVH LQWR WKH WURSRVSKHUH YHUWLFDOO\  QRU LQ WKH KRUL]RQWDOGLUHFWLRQ $QRWKHULPSRUWDQWVRXUFHRIQLWULFDFLGLQWKHHQYLURQPHQWLVWKHVXEVWLWXWLRQ RIK\GURJHQIURPK\GURFDUERQVDOGHK\GHVHWF ‡

.

12  5+ o 5  +12 

12  5  &+2 o 5  &2  +12  .

 u  FP PRO VHF 



 u  FPPRO VHF  

7KHGDWDTXRWHGDERYHLVIRUIRUPDOGHK\GH2WKHUDOGHK\GHVDUHPRUHUHDFWLYH DQGWLPHVIDVWHU$W\SLFDOXUEDQDWPRVSKHUHFRQWDLQVDERXWî±PROVFP± RI K\GURFDUERQV H[FOXGLQJ PHWKDQH  î ± PROFP± RI IRUPDOGHK\GH DQG î±PROFP±RIDFHWDOGHK\GH 7KLVLVSROOXWHGDWPRVSKHUHHYHQDVDFUXGHHVWLPDWH1LJKWWLPHFRQYHUVLRQ DFFRXQWVIRUDERXW+12GXHWRWKHDEVWUDFWLRQRIK\GURJHQ,QSUHVHQFH RI12DQGR]RQHQLWUDWHUDGLFDOLVIRUPHGZKLFKLVLQHTXLOLEULXPZLWK12 2   12  o 12   2  

.

0 12  2+  o +12  



‡

12  5  &+2 o 5  &2  +12  .

 u  FP PRO VHF 



 u  FPPRO VHF  

7KHGDWDTXRWHGDERYHLVIRUIRUPDOGHK\GH2WKHUDOGHK\GHVDUHPRUHUHDFWLYH DQGWLPHVIDVWHU$W\SLFDOXUEDQDWPRVSKHUHFRQWDLQVDERXWî±PROVFP± RI K\GURFDUERQV H[FOXGLQJ PHWKDQH  î ± PROFP± RI IRUPDOGHK\GH DQG î±PROFP±RIDFHWDOGHK\GH 7KLVLVSROOXWHGDWPRVSKHUHHYHQDVDFUXGHHVWLPDWH1LJKWWLPHFRQYHUVLRQ DFFRXQWVIRUDERXW+12GXHWRWKHDEVWUDFWLRQRIK\GURJHQ,QSUHVHQFH RI12DQGR]RQHQLWUDWHUDGLFDOLVIRUPHGZKLFKLVLQHTXLOLEULXPZLWK12 2   12  o 12   2  

.

 u   FP PRO  VHF  

12   12  1  2



1  2  +  2 +12 

.  u  FPPRO VHF  

7DEOH)RUPDWLRQFRQVWDQWVRI+12

.

12  5+ o 5  +12 



1  2  +  2 +12 



7KLVUHDFWLRQLVUHODWLYHO\UDSLGDQGWHQWLPHVIDVWHUWKDQ62±2+UHDFWLRQ7\SLFDO OLIHWLPHRI12LVRQHGD\FRPSDUHGWRGD\VIRU62XQGHUVLPLODUFRQGLWLRQV 7KXVPRVWRI12FRQYHUVLRQLQWRQLWULFDFLGRFFXUVQHDUHUWKHVRXUFHLWVHOI7KLV LPSOLHV WKDW 12 GRHV QRW GLIIXVH LQWR WKH WURSRVSKHUH YHUWLFDOO\  QRU LQ WKH KRUL]RQWDOGLUHFWLRQ $QRWKHULPSRUWDQWVRXUFHRIQLWULFDFLGLQWKHHQYLURQPHQWLVWKHVXEVWLWXWLRQ RIK\GURJHQIURPK\GURFDUERQVDOGHK\GHVHWF

 u   FP PRO  VHF  

12   12  1  2

.  u   FP PRO  VHF 

.  u  FPPRO VHF  

7DEOH)RUPDWLRQFRQVWDQWVRI+12

&RPSRXQG

$WPRVSKHULF FRQFHQWUDWLRQ

+12IRUPDWLRQ UDWH QLJKW PROHVFP±V±

3URGXFWLRQ SSEKU

3URGXF WLRQUDWH GD\WLPH

3URGXF WLRQ SSEKU

&RPSRXQG

$WPRVSKHULF FRQFHQWUDWLRQ

+12IRUPDWLRQ UDWH QLJKW PROHVFP±V±

3URGXFWLRQ SSEKU

3URGXF WLRQUDWH GD\WLPH

3URGXF WLRQ SSEKU

&+

î±

±

±

±

±

&+

î±

±

±

±

±

+&+2

î±

î



î



+&+2

î±

î



î



&+&+2

î±

î



î



&+&+2

î±

î



î



12

î±

î



±

±

12

î±

î



±

±

$FLG5DLQ



0.30 N2O5 + H2O

NO2 + OH

0.20

0.10 N2O5 + H2O NO3 + Org



7KLV UHDFWLRQ LV YHU\ VORZ FRPSDUHG WR RWKHU UHDFWLRQV )LJXUH  VKRZV WKHGLXUQDOYDULDWLRQLQWKHSURGXFWLRQRIQLWULFDFLGE\YDULRXVUHDFWLRQSDWKVDW GLIIHUHQW WLPHV RI WKH GD\ >@ 7KH GLVVROXWLRQ RI 12 LQWR ZDWHU GURSOHW E\ UHDFWLRQ LVPXFKIDVWHU Rate of HNO3 production (ngNm–3s–1)

Rate of HNO3 production (ngNm–3s–1)

7KLV UHDFWLRQ LV YHU\ VORZ FRPSDUHG WR RWKHU UHDFWLRQV )LJXUH  VKRZV WKHGLXUQDOYDULDWLRQLQWKHSURGXFWLRQRIQLWULFDFLGE\YDULRXVUHDFWLRQSDWKVDW GLIIHUHQW WLPHV RI WKH GD\ >@ 7KH GLVVROXWLRQ RI 12 LQWR ZDWHU GURSOHW E\ UHDFWLRQ LVPXFKIDVWHU

$FLG5DLQ

0

0.30 N2O5 + H2O

NO2 + OH

0.20

0.10 N2O5 + H2O NO3 + Org 0

12 pm

Sunrise

Sunset

12 pm

Sunrise

Time

Sunset

Time

)LJ'LXUQDOYDULDWLRQRIQLWULFDFLGSURGXFWLRQ

)LJ'LXUQDOYDULDWLRQRIQLWULFDFLGSURGXFWLRQ

$TXHRXV SKDVH UHDFWLRQ RI JDVHRXV 12 ZLWK ZDWHU LV DOVR YHU\ VORZ DQG SURFHHGVDFFRUGLQJWR

$TXHRXV SKDVH UHDFWLRQ RI JDVHRXV 12 ZLWK ZDWHU LV DOVR YHU\ VORZ DQG SURFHHGVDFFRUGLQJWR

12  J  +  2O l +   12   12

12  J  +  2O l +   12   12





/RZ VROXELOLW\ RI 12 JDV LQ ZDWHU DQG VHFRQGRUGHU UDWH FRQVWDQW RI WKH UHDFWLRQDUHWKHFDXVDWLYHIDFWRUVIRUWKHVORZQHVVRIUHDFWLRQ&ORXGFKDPEHU VWXGLHV VXJJHVWWKDW+2R[LGL]HV12UDSLGO\LQWRQLWUDWHLQFORXGZDWHUGURSOHWV(YHQ WKLVUHDFWLRQLVEHOLHYHGWREHTXLWHVORZZLWKDUDWHFRQVWDQWRIPROHV/±V±,Q FRQFOXVLRQ RQH PD\ VD\ WKDW QLWURJHQ R[LGHV JHQHUDWH VLJQLILFDQW TXDQWLWLHV RI QLWULFDFLGLQDTXHRXVSKDVHLQWKHDWPRVSKHUH

/RZ VROXELOLW\ RI 12 JDV LQ ZDWHU DQG VHFRQGRUGHU UDWH FRQVWDQW RI WKH UHDFWLRQDUHWKHFDXVDWLYHIDFWRUVIRUWKHVORZQHVVRIUHDFWLRQ&ORXGFKDPEHU VWXGLHV VXJJHVWWKDW+2R[LGL]HV12UDSLGO\LQWRQLWUDWHLQFORXGZDWHUGURSOHWV(YHQ WKLVUHDFWLRQLVEHOLHYHGWREHTXLWHVORZZLWKDUDWHFRQVWDQWRIPROHV/±V±,Q FRQFOXVLRQ RQH PD\ VD\ WKDW QLWURJHQ R[LGHV JHQHUDWH VLJQLILFDQW TXDQWLWLHV RI QLWULFDFLGLQDTXHRXVSKDVHLQWKHDWPRVSKHUH

 ())(&72)$0021,$

 ())(&72)$0021,$

7KHUROHRIDPPRQLDDVDVRXUFHRIDFLGUDLQKDVUHFHLYHGFRQVLGHUDEOHDWWHQWLRQ IURP UHVHDUFKHUV VLQFH V $PPRQLD LV D E\SURGXFW RI DQLPDO PDQXUH DQG IHUWLOL]HU GHJUDGDWLRQ ,QWHQVLYH DJULFXOWXUDO SUDFWLFH UHOHDVHV DPPRQLD LQWR WKH DWPRVSKHUH'LVVROXWLRQRIDPPRQLDFRQYHUWVUDLQZDWHULQWRDONDOLQHS+UDQJH 7KHUHIRUH WKH UDWH RI FRQYHUVLRQ RI 62 DQG 12[ LQFUHDVHV UDSLGO\ 0LFURELDO FRQYHUVLRQRIDPPRQLDLQWKHVRLOWRIRUPQLWULFDFLGLVDOVRDPDMRUIDFWRU)XUWKHU ERWKQLWULFDFLGDQGVXOSKXULFDFLGVFDQUHDFWZLWKEDVHVSUHVHQWLQWKHDWPRVSKHUH WRIRUPVDOWV

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

$FLG5DLQ



0.30 N2O5 + H2O

NO2 + OH

0.20

0.10 N2O5 + H2O NO3 + Org 0



7KLV UHDFWLRQ LV YHU\ VORZ FRPSDUHG WR RWKHU UHDFWLRQV )LJXUH  VKRZV WKHGLXUQDOYDULDWLRQLQWKHSURGXFWLRQRIQLWULFDFLGE\YDULRXVUHDFWLRQSDWKVDW GLIIHUHQW WLPHV RI WKH GD\ >@ 7KH GLVVROXWLRQ RI 12 LQWR ZDWHU GURSOHW E\ UHDFWLRQ LVPXFKIDVWHU Rate of HNO3 production (ngNm–3s–1)

Rate of HNO3 production (ngNm–3s–1)

7KLV UHDFWLRQ LV YHU\ VORZ FRPSDUHG WR RWKHU UHDFWLRQV )LJXUH  VKRZV WKHGLXUQDOYDULDWLRQLQWKHSURGXFWLRQRIQLWULFDFLGE\YDULRXVUHDFWLRQSDWKVDW GLIIHUHQW WLPHV RI WKH GD\ >@ 7KH GLVVROXWLRQ RI 12 LQWR ZDWHU GURSOHW E\ UHDFWLRQ LVPXFKIDVWHU

$FLG5DLQ

0.30 N2O5 + H2O

NO2 + OH

0.20

0.10 N2O5 + H2O NO3 + Org 0

Sunrise

12 pm

Sunset

Sunrise

Time

12 pm

Sunset

Time

)LJ'LXUQDOYDULDWLRQRIQLWULFDFLGSURGXFWLRQ

)LJ'LXUQDOYDULDWLRQRIQLWULFDFLGSURGXFWLRQ

$TXHRXV SKDVH UHDFWLRQ RI JDVHRXV 12 ZLWK ZDWHU LV DOVR YHU\ VORZ DQG SURFHHGVDFFRUGLQJWR

$TXHRXV SKDVH UHDFWLRQ RI JDVHRXV 12 ZLWK ZDWHU LV DOVR YHU\ VORZ DQG SURFHHGVDFFRUGLQJWR

12  J  +  2O l +   12   12

12  J  +  2O l +   12   12





/RZ VROXELOLW\ RI 12 JDV LQ ZDWHU DQG VHFRQGRUGHU UDWH FRQVWDQW RI WKH UHDFWLRQDUHWKHFDXVDWLYHIDFWRUVIRUWKHVORZQHVVRIUHDFWLRQ&ORXGFKDPEHU VWXGLHV VXJJHVWWKDW+2R[LGL]HV12UDSLGO\LQWRQLWUDWHLQFORXGZDWHUGURSOHWV(YHQ WKLVUHDFWLRQLVEHOLHYHGWREHTXLWHVORZZLWKDUDWHFRQVWDQWRIPROHV/±V±,Q FRQFOXVLRQ RQH PD\ VD\ WKDW QLWURJHQ R[LGHV JHQHUDWH VLJQLILFDQW TXDQWLWLHV RI QLWULFDFLGLQDTXHRXVSKDVHLQWKHDWPRVSKHUH

/RZ VROXELOLW\ RI 12 JDV LQ ZDWHU DQG VHFRQGRUGHU UDWH FRQVWDQW RI WKH UHDFWLRQDUHWKHFDXVDWLYHIDFWRUVIRUWKHVORZQHVVRIUHDFWLRQ&ORXGFKDPEHU VWXGLHV VXJJHVWWKDW+2R[LGL]HV12UDSLGO\LQWRQLWUDWHLQFORXGZDWHUGURSOHWV(YHQ WKLVUHDFWLRQLVEHOLHYHGWREHTXLWHVORZZLWKDUDWHFRQVWDQWRIPROHV/±V±,Q FRQFOXVLRQ RQH PD\ VD\ WKDW QLWURJHQ R[LGHV JHQHUDWH VLJQLILFDQW TXDQWLWLHV RI QLWULFDFLGLQDTXHRXVSKDVHLQWKHDWPRVSKHUH

 ())(&72)$0021,$

 ())(&72)$0021,$

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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV +12  1+  1+  12

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV 

7KH GLVVRFLDWLRQ FRQVWDQW RI WKLV UHDFWLRQ LV YHU\ VHQVLWLYH WR DWPRVSKHULF WHPSHUDWXUHFKDQJHV2QFHIRUPHGQLWULFDFLGUHYRODWLOL]HV)RUWXQDWHO\VXOSKXULF DFLGGRHVQRWXQGHUJRVLPLODUUHDFWLRQV

+ 62  1+ 1+   62   + 



+12  1+  1+  12



7KH GLVVRFLDWLRQ FRQVWDQW RI WKLV UHDFWLRQ LV YHU\ VHQVLWLYH WR DWPRVSKHULF WHPSHUDWXUHFKDQJHV2QFHIRUPHGQLWULFDFLGUHYRODWLOL]HV)RUWXQDWHO\VXOSKXULF DFLGGRHVQRWXQGHUJRVLPLODUUHDFWLRQV

+ 62  1+ 1+   62   + 



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

  12 2 +  12 l 2+ 

  12 2 +  12 l 2+ 





&RQVHTXHQWO\+2IRUPDWLRQZLOOEHKLQGHUHGDQGWKHJDVSKDVHIRUPDWLRQ RIVXOSKXULFDFLGDOVRZLOOEHDGYHUVHO\DIIHFWHG

&RQVHTXHQWO\+2IRUPDWLRQZLOOEHKLQGHUHGDQGWKHJDVSKDVHIRUPDWLRQ RIVXOSKXULFDFLGDOVRZLOOEHDGYHUVHO\DIIHFWHG

 $&,' '(326,7,21 352&(66(6

 $&,' '(326,7,21 352&(66(6

0RVWRIWKHDFLGVIRUPHGLQWKHDWPRVSKHUHZLOOEHGHSRVLWHGRQWKHVXUIDFHRIWKH HDUWKXOWLPDWHO\7KHUHDUHRQO\WZRVXUIDFHVRQWKHHDUWKZDWHUERGLHVLQFOXGLQJ RFHDQVODNHVDQGULYHUV DQGVRLOVXUIDFHLQFOXGLQJEXLOGLQJVHWF 7KHPHFKDQLVP RIGHSRVLWLRQLVHLWKHUZHWGHSRVLWLRQRUGU\GHSRVLWLRQ

0RVWRIWKHDFLGVIRUPHGLQWKHDWPRVSKHUHZLOOEHGHSRVLWHGRQWKHVXUIDFHRIWKH HDUWKXOWLPDWHO\7KHUHDUHRQO\WZRVXUIDFHVRQWKHHDUWKZDWHUERGLHVLQFOXGLQJ RFHDQVODNHVDQGULYHUV DQGVRLOVXUIDFHLQFOXGLQJEXLOGLQJVHWF 7KHPHFKDQLVP RIGHSRVLWLRQLVHLWKHUZHWGHSRVLWLRQRUGU\GHSRVLWLRQ

:HW'HSRVLWLRQ$FLGVIRUPHGDUHGLVVROYHGLQZDWHUGURSOHWVSUHVHQWLQWKHFORXGV IRJUDLQRUVQRZ7KH\FDQLPSDFWWKHVXUIDFHRIWKHHDUWKLQWKHVDPHIRUP7KLV LVNQRZQDVZHWGHSRVLWLRQ7KHVXUIDFHRIWKHHDUWKLVKLJKO\KHWHURJHQHRXVLQ QDWXUHWKDWLQFOXGHVVRLOVYHJHWDWLRQEXLOGLQJVURDGVDQGZDWHUERGLHV

:HW'HSRVLWLRQ$FLGVIRUPHGDUHGLVVROYHGLQZDWHUGURSOHWVSUHVHQWLQWKHFORXGV IRJUDLQRUVQRZ7KH\FDQLPSDFWWKHVXUIDFHRIWKHHDUWKLQWKHVDPHIRUP7KLV LVNQRZQDVZHWGHSRVLWLRQ7KHVXUIDFHRIWKHHDUWKLVKLJKO\KHWHURJHQHRXVLQ QDWXUHWKDWLQFOXGHVVRLOVYHJHWDWLRQEXLOGLQJVURDGVDQGZDWHUERGLHV

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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

+12  1+  1+  12



7KH GLVVRFLDWLRQ FRQVWDQW RI WKLV UHDFWLRQ LV YHU\ VHQVLWLYH WR DWPRVSKHULF WHPSHUDWXUHFKDQJHV2QFHIRUPHGQLWULFDFLGUHYRODWLOL]HV)RUWXQDWHO\VXOSKXULF DFLGGRHVQRWXQGHUJRVLPLODUUHDFWLRQV

+ 62  1+ 1+   62   + 



+12  1+  1+  12



7KH GLVVRFLDWLRQ FRQVWDQW RI WKLV UHDFWLRQ LV YHU\ VHQVLWLYH WR DWPRVSKHULF WHPSHUDWXUHFKDQJHV2QFHIRUPHGQLWULFDFLGUHYRODWLOL]HV)RUWXQDWHO\VXOSKXULF DFLGGRHVQRWXQGHUJRVLPLODUUHDFWLRQV

+ 62  1+ 1+   62   + 



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

  12 2 +  12 l 2+ 

  12 2 +  12 l 2+ 





&RQVHTXHQWO\+2IRUPDWLRQZLOOEHKLQGHUHGDQGWKHJDVSKDVHIRUPDWLRQ RIVXOSKXULFDFLGDOVRZLOOEHDGYHUVHO\DIIHFWHG

&RQVHTXHQWO\+2IRUPDWLRQZLOOEHKLQGHUHGDQGWKHJDVSKDVHIRUPDWLRQ RIVXOSKXULFDFLGDOVRZLOOEHDGYHUVHO\DIIHFWHG

 $&,' '(326,7,21 352&(66(6

 $&,' '(326,7,21 352&(66(6

0RVWRIWKHDFLGVIRUPHGLQWKHDWPRVSKHUHZLOOEHGHSRVLWHGRQWKHVXUIDFHRIWKH HDUWKXOWLPDWHO\7KHUHDUHRQO\WZRVXUIDFHVRQWKHHDUWKZDWHUERGLHVLQFOXGLQJ RFHDQVODNHVDQGULYHUV DQGVRLOVXUIDFHLQFOXGLQJEXLOGLQJVHWF 7KHPHFKDQLVP RIGHSRVLWLRQLVHLWKHUZHWGHSRVLWLRQRUGU\GHSRVLWLRQ

0RVWRIWKHDFLGVIRUPHGLQWKHDWPRVSKHUHZLOOEHGHSRVLWHGRQWKHVXUIDFHRIWKH HDUWKXOWLPDWHO\7KHUHDUHRQO\WZRVXUIDFHVRQWKHHDUWKZDWHUERGLHVLQFOXGLQJ RFHDQVODNHVDQGULYHUV DQGVRLOVXUIDFHLQFOXGLQJEXLOGLQJVHWF 7KHPHFKDQLVP RIGHSRVLWLRQLVHLWKHUZHWGHSRVLWLRQRUGU\GHSRVLWLRQ

:HW'HSRVLWLRQ$FLGVIRUPHGDUHGLVVROYHGLQZDWHUGURSOHWVSUHVHQWLQWKHFORXGV IRJUDLQRUVQRZ7KH\FDQLPSDFWWKHVXUIDFHRIWKHHDUWKLQWKHVDPHIRUP7KLV LVNQRZQDVZHWGHSRVLWLRQ7KHVXUIDFHRIWKHHDUWKLVKLJKO\KHWHURJHQHRXVLQ QDWXUHWKDWLQFOXGHVVRLOVYHJHWDWLRQEXLOGLQJVURDGVDQGZDWHUERGLHV

:HW'HSRVLWLRQ$FLGVIRUPHGDUHGLVVROYHGLQZDWHUGURSOHWVSUHVHQWLQWKHFORXGV IRJUDLQRUVQRZ7KH\FDQLPSDFWWKHVXUIDFHRIWKHHDUWKLQWKHVDPHIRUP7KLV LVNQRZQDVZHWGHSRVLWLRQ7KHVXUIDFHRIWKHHDUWKLVKLJKO\KHWHURJHQHRXVLQ QDWXUHWKDWLQFOXGHVVRLOVYHJHWDWLRQEXLOGLQJVURDGVDQGZDWHUERGLHV

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

$FLG5DLQ



$FLG5DLQ



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

 92/$7,/(25*$1,&&203281'6

 92/$7,/(25*$1,&&203281'6

$ZLGHUDQJHRIR[\JHQDWHGRUJDQLFFRPSRXQGVVXFKDVDOFRKROVDOGHK\GHVDQG NHWRQHVKDYLQJKLJKYDSRXUSUHVVXUHZLWKERLOLQJSRLQWVEHORZR&DUHNQRZQ DV YRODWLOH RUJDQLF FRPSRXQGV 6XFK FRPSRXQGV DOVR LQFOXGH K\GURFDUERQV R[\JHQDWHVDPLQHVDQGVHYHUDORWKHUFODVVHVZLWKWKHH[FHSWLRQRIPHWKDQH81 GHILQHV92&VDV³$OORUJDQLFFRPSRXQGVRIDQWKURSRJHQLFQDWXUHRWKHUWKDQ PHWKDQH &+  WKDW DUH FDSDEOH RI SURGXFLQJ SKRWRFKHPLFDO R[LGDQWV E\ UHDFWLRQZLWKQLWURJHQR[LGHV12[ LQVXQOLJKW´7KHPDLQVRXUFHVRI92&V DUHFKHPLFDOVHPLWWHGIURPDXWRPRELOHVSHWURFKHPLFDOLQGXVWULHVSDLQWVVROYHQWV JOXHVHWF([DFWJOREDOHVWLPDWHVRIHPLVVLRQVRIVXFKFRPSRXQGVDUHQRWDYDLODEOH

$ZLGHUDQJHRIR[\JHQDWHGRUJDQLFFRPSRXQGVVXFKDVDOFRKROVDOGHK\GHVDQG NHWRQHVKDYLQJKLJKYDSRXUSUHVVXUHZLWKERLOLQJSRLQWVEHORZR&DUHNQRZQ DV YRODWLOH RUJDQLF FRPSRXQGV 6XFK FRPSRXQGV DOVR LQFOXGH K\GURFDUERQV R[\JHQDWHVDPLQHVDQGVHYHUDORWKHUFODVVHVZLWKWKHH[FHSWLRQRIPHWKDQH81 GHILQHV92&VDV³$OORUJDQLFFRPSRXQGVRIDQWKURSRJHQLFQDWXUHRWKHUWKDQ PHWKDQH &+  WKDW DUH FDSDEOH RI SURGXFLQJ SKRWRFKHPLFDO R[LGDQWV E\ UHDFWLRQZLWKQLWURJHQR[LGHV12[ LQVXQOLJKW´7KHPDLQVRXUFHVRI92&V DUHFKHPLFDOVHPLWWHGIURPDXWRPRELOHVSHWURFKHPLFDOLQGXVWULHVSDLQWVVROYHQWV JOXHVHWF([DFWJOREDOHVWLPDWHVRIHPLVVLRQVRIVXFKFRPSRXQGVDUHQRWDYDLODEOH

 27+(5 &+(0,&$/6

 27+(5 &+(0,&$/6

1RZDGD\V WKHUH LV DQ LQFUHDVHG DZDUHQHVV DERXW WKH UHFNOHVV HPLVVLRQV RI K\GURFKORULF QLWULF DQG SKRVSKRULF DFLGV (VSHFLDOO\ GXULQJ WUDQVSRUW WKHUH LV HYHU\ FKDQFH WKDW VXFK DFLGV DUH HPLWWHG DV DFLG IRJ DFLG PLVW RU VLPSO\ DV YDSRXUVWKURXJKOHDNDJHVDQGLQGXVWULDOSURFHVVHPLVVLRQV7KHVHDFLGJDVHVDOVR GLVVROYHLQWKHIDOOLQJUDLQGHFUHDVLQJWKHS+IXUWKHU'LUHFWORVVHVRIDFLGVDVZHOO DVDFFLGHQWVDUHDJDLQGLIILFXOWWRHVWLPDWH

1RZDGD\V WKHUH LV DQ LQFUHDVHG DZDUHQHVV DERXW WKH UHFNOHVV HPLVVLRQV RI K\GURFKORULF QLWULF DQG SKRVSKRULF DFLGV (VSHFLDOO\ GXULQJ WUDQVSRUW WKHUH LV HYHU\ FKDQFH WKDW VXFK DFLGV DUH HPLWWHG DV DFLG IRJ DFLG PLVW RU VLPSO\ DV YDSRXUVWKURXJKOHDNDJHVDQGLQGXVWULDOSURFHVVHPLVVLRQV7KHVHDFLGJDVHVDOVR GLVVROYHLQWKHIDOOLQJUDLQGHFUHDVLQJWKHS+IXUWKHU'LUHFWORVVHVRIDFLGVDVZHOO DVDFFLGHQWVDUHDJDLQGLIILFXOWWRHVWLPDWH

 +@,QKLOO\DUHDVRIQRUWKHDVWHUQ$PHULFDVLPLODU HIIHFWVKDYHEHHQREVHUYHG6RPHDUHDVKDYHUHSRUWHGPRUWDOLW\UDWHRI5HG 6SUXFH7UHHV7\SLFDOJURZWKUHGXFLQJV\PSWRPVLQFOXGH

L LL LLL LY Y YL YLL

L LL LLL LY Y YL YLL

@,QKLOO\DUHDVRIQRUWKHDVWHUQ$PHULFDVLPLODU HIIHFWVKDYHEHHQREVHUYHG6RPHDUHDVKDYHUHSRUWHGPRUWDOLW\UDWHRI5HG 6SUXFH7UHHV7\SLFDOJURZWKUHGXFLQJV\PSWRPVLQFOXGH

L LL LLL LY Y YL YLL

L LL LLL LY Y YL YLL

$O+  2  @





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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

DFLGUDLQUHQGHUVWKHKHDY\PHWDOVLQWKHVRLOWREHFRPHODELOHDQGDFFHVLEOHIRU DEVRUSWLRQE\WKHURRWV$VWKHPHWDOFRQFHQWUDWLRQLQFUHDVHVEH\RQGWKHLUWROHUDQFH OHYHOWR[LFPHWDOVDUHWUDQVORFDWHGLQWRRWKHUSDUWVRIWKHWUHHVZKHUHWKH\FDXVH PRUHGDPDJH &DOFLXPDQGDOXPLQLXPDUHWKHPRVWDEXQGDQWHOHPHQWVLQWKHVRLO1RUPDOO\ FDOFLXPDQGPDJQHVLXPFDWLRQVDUHUHDGLO\H[FKDQJHGIURPURFNVDQGVRLOVE\WKH +LRQVLQDUHYHUVLEOHPDQQHU

DFLGUDLQUHQGHUVWKHKHDY\PHWDOVLQWKHVRLOWREHFRPHODELOHDQGDFFHVLEOHIRU DEVRUSWLRQE\WKHURRWV$VWKHPHWDOFRQFHQWUDWLRQLQFUHDVHVEH\RQGWKHLUWROHUDQFH OHYHOWR[LFPHWDOVDUHWUDQVORFDWHGLQWRRWKHUSDUWVRIWKHWUHHVZKHUHWKH\FDXVH PRUHGDPDJH &DOFLXPDQGDOXPLQLXPDUHWKHPRVWDEXQGDQWHOHPHQWVLQWKHVRLO1RUPDOO\ FDOFLXPDQGPDJQHVLXPFDWLRQVDUHUHDGLO\H[FKDQJHGIURPURFNVDQGVRLOVE\WKH +LRQVLQDUHYHUVLEOHPDQQHU

&D  VRLO  +  2 l +  VRLO  &D 

&D  VRLO  +  2 l +  VRLO  &D 





7KLVLVDEXIIHUUHDFWLRQ+RZHYHULIWKHVRLOVFRQWLQXHWRUHFHLYHDFLGUDLQV IRUORQJWLPHWKHEXIIHUFDSDFLW\ZLOOGHFUHDVH$IWHUDOOWKH&DDQG0JLRQV DUH H[KDXVWHG DOXPLQLXP LRQV IURP WKH VRLO ZLOO FRPH WR WKH SOD\ :HDWKHULQJ UHOHDVHVDOXPLQLXPK\GUR[LGHIURPWKHVRLODQGURFNV%HLQJDPSKRWHULFDOXPLQLXP K\GUR[LGHLRQH[FKDQJHVDSURWRQ7KHIROORZLQJUHDFWLRQVHTXHQFHLVHQYLVDJHG

7KLVLVDEXIIHUUHDFWLRQ+RZHYHULIWKHVRLOVFRQWLQXHWRUHFHLYHDFLGUDLQV IRUORQJWLPHWKHEXIIHUFDSDFLW\ZLOOGHFUHDVH$IWHUDOOWKH&DDQG0JLRQV DUH H[KDXVWHG DOXPLQLXP LRQV IURP WKH VRLO ZLOO FRPH WR WKH SOD\ :HDWKHULQJ UHOHDVHVDOXPLQLXPK\GUR[LGHIURPWKHVRLODQGURFNV%HLQJDPSKRWHULFDOXPLQLXP K\GUR[LGHLRQH[FKDQJHVDSURWRQ7KHIROORZLQJUHDFWLRQVHTXHQFHLVHQYLVDJHG

$O  2+  o $O2+  o +   +  $O2



$O  2+  o $O2+  o +   +  $O2



$O2+   +  2 o $O2+  +  2 



$O2+   +  2 o $O2+  +  2 



$O2+  +  2   +  o $O2+  +  2 



$O2+  +  2   +  o $O2+  +  2 



$O2+  +  2   +  o $O2+ +  2 



$O2+  +  2   +  o $O2+ +  2 



$O2+ +  2   +  o >$O+  2  @





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

$O2+ +  2   +  o >$O+  2  @





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

$FLG5DLQ



$FLG5DLQ



 /HDFKLQJ RI 6RLO 0LFURQXWULHQWV

 /HDFKLQJ RI 6RLO 0LFURQXWULHQWV

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

 $TXDWLF (FRV\VWHP

 $TXDWLF (FRV\VWHP

7KH FKHPLVWU\ RI ODNHV DQG VXUIDFH ZDWHUV LV JRYHUQHG E\ JHRPRUSKRORJ\ JHRFKHPLVWU\DQGK\GURG\QDPLFVRIWKHZDWHUVKHGDQGRIWKHZDWHUERG\0RVW RI WKH VXUIDFH ZDWHUV DUH QDWXUDOO\ DFLGLF ZLWK WKH UDQJH RI S+ RI ±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

7KH FKHPLVWU\ RI ODNHV DQG VXUIDFH ZDWHUV LV JRYHUQHG E\ JHRPRUSKRORJ\ JHRFKHPLVWU\DQGK\GURG\QDPLFVRIWKHZDWHUVKHGDQGRIWKHZDWHUERG\0RVW RI WKH VXUIDFH ZDWHUV DUH QDWXUDOO\ DFLGLF ZLWK WKH UDQJH RI S+ RI ±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

$FLG5DLQ



$FLG5DLQ



 /HDFKLQJ RI 6RLO 0LFURQXWULHQWV

 /HDFKLQJ RI 6RLO 0LFURQXWULHQWV

6XOSKDWHLVDPDMRUDQLRQLQWKHVRLOV\VWHP)DVWHUVXOSKDWHOHDFKLQJUHVXOWVLQWKH ORVV RI SRWDVVLXP PDJQHVLXP FDOFLXP DOXPLQLXP LURQ ERURQ DQG RWKHU PLFURQXWULHQWV $FLG UDLQ SURPRWHV WKH H[FKDQJH RI WKHVH FDWLRQV DQG SURWRQV 1RQFDOFDUHRXVVDQG\VRLOVZLWKDQDWXUDOS+RIPDNHVWKHFDWLRQVDVZHOODV RWKHULRQVPRUHODELOH7KHZDWHUZLOOHDVLO\SHUFRODWHWKURXJKDQGKHQFHWKHVRLO EHFRPHVPRUHDQGPRUHDFLGLF/RVVRIPDJQHVLXPWKURXJKH[FKDQJHUHDFWLRQV LVDQRWKHUFULWLFDOIDFWRUFDXVLQJUHGXFWLRQLQWKHFKORURSK\OOFRQWHQWRIOHDYHV 7KXV\HOORZLQJRIVSUXFHQHHGOHVLVDFRPPRQVLJKWLQDFLGUDLQDIIHFWHGDUHDV /RVV RI FDOFLXP DQG PDJQHVLXP DOVR WXUQV WKH VRLO LQWR DFLGLF IRUPV WKHUHE\ DGYHUVHO\DIIHFWLQJWKHK\GURJHQFDOFLXPUDWLRLQWKHVRLO $FLGLFVRLODGYHUVHO\DIIHFWVWKHPLFURELDOSRSXODWLRQDVZHOO0RVWEDFWHULD DQGSURWR]RDKDYHJRRGUHSURGXFWLYHUDWHVDWQHDUQHXWUDOS+)XQJLSUROLIHUDWHLQ DFLGLFHQYLURQPHQW%OXHJUHHQDOJDHSUHIHUDONDOLQHS+

6XOSKDWHLVDPDMRUDQLRQLQWKHVRLOV\VWHP)DVWHUVXOSKDWHOHDFKLQJUHVXOWVLQWKH ORVV RI SRWDVVLXP PDJQHVLXP FDOFLXP DOXPLQLXP LURQ ERURQ DQG RWKHU PLFURQXWULHQWV $FLG UDLQ SURPRWHV WKH H[FKDQJH RI WKHVH FDWLRQV DQG SURWRQV 1RQFDOFDUHRXVVDQG\VRLOVZLWKDQDWXUDOS+RIPDNHVWKHFDWLRQVDVZHOODV RWKHULRQVPRUHODELOH7KHZDWHUZLOOHDVLO\SHUFRODWHWKURXJKDQGKHQFHWKHVRLO EHFRPHVPRUHDQGPRUHDFLGLF/RVVRIPDJQHVLXPWKURXJKH[FKDQJHUHDFWLRQV LVDQRWKHUFULWLFDOIDFWRUFDXVLQJUHGXFWLRQLQWKHFKORURSK\OOFRQWHQWRIOHDYHV 7KXV\HOORZLQJRIVSUXFHQHHGOHVLVDFRPPRQVLJKWLQDFLGUDLQDIIHFWHGDUHDV /RVV RI FDOFLXP DQG PDJQHVLXP DOVR WXUQV WKH VRLO LQWR DFLGLF IRUPV WKHUHE\ DGYHUVHO\DIIHFWLQJWKHK\GURJHQFDOFLXPUDWLRLQWKHVRLO $FLGLFVRLODGYHUVHO\DIIHFWVWKHPLFURELDOSRSXODWLRQDVZHOO0RVWEDFWHULD DQGSURWR]RDKDYHJRRGUHSURGXFWLYHUDWHVDWQHDUQHXWUDOS+)XQJLSUROLIHUDWHLQ DFLGLFHQYLURQPHQW%OXHJUHHQDOJDHSUHIHUDONDOLQHS+

 $TXDWLF (FRV\VWHP

 $TXDWLF (FRV\VWHP

7KH FKHPLVWU\ RI ODNHV DQG VXUIDFH ZDWHUV LV JRYHUQHG E\ JHRPRUSKRORJ\ JHRFKHPLVWU\DQGK\GURG\QDPLFVRIWKHZDWHUVKHGDQGRIWKHZDWHUERG\0RVW RI WKH VXUIDFH ZDWHUV DUH QDWXUDOO\ DFLGLF ZLWK WKH UDQJH RI S+ RI ±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

7KH FKHPLVWU\ RI ODNHV DQG VXUIDFH ZDWHUV LV JRYHUQHG E\ JHRPRUSKRORJ\ JHRFKHPLVWU\DQGK\GURG\QDPLFVRIWKHZDWHUVKHGDQGRIWKHZDWHUERG\0RVW RI WKH VXUIDFH ZDWHUV DUH QDWXUDOO\ DFLGLF ZLWK WKH UDQJH RI S+ RI ±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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

UDQJH7KHFDGPLXPUHOHDVHUDWHLQFUHDVHVIURPFP\UDWS+WRFP\HDU DWS+DQGFP\UDWS+>@'HFUHDVHGS+DIIHFWVWKHGLYHUVLW\PRELOLW\ DQGSRSXODWLRQGHQVLW\RIWKHORZHUOLIHIRUPV,QYHUWHEUDWHVLQDFLGLFODNHVLQYDULDEO\ DFFXPXODWH WR[LF WUDFH HOHPHQWV ZKLFK DUH WKHQ SDVVHG RQ WR YHUWHEUDWHV LQ WKH IRRGZHE7KLVFDXVHVGHFOLQLQJILVK\LHOGVDQGRWKHUVHDIRRGV)LJXUHVKRZV WKHVSHFLHVDFLGLW\UHODWLRQVKLSLQWKHZDWHUV

UDQJH7KHFDGPLXPUHOHDVHUDWHLQFUHDVHVIURPFP\UDWS+WRFP\HDU DWS+DQGFP\UDWS+>@'HFUHDVHGS+DIIHFWVWKHGLYHUVLW\PRELOLW\ DQGSRSXODWLRQGHQVLW\RIWKHORZHUOLIHIRUPV,QYHUWHEUDWHVLQDFLGLFODNHVLQYDULDEO\ DFFXPXODWH WR[LF WUDFH HOHPHQWV ZKLFK DUH WKHQ SDVVHG RQ WR YHUWHEUDWHV LQ WKH IRRGZHE7KLVFDXVHVGHFOLQLQJILVK\LHOGVDQGRWKHUVHDIRRGV)LJXUHVKRZV WKHVSHFLHVDFLGLW\UHODWLRQVKLSLQWKHZDWHUV

pH 7.5

7.0

6.5

6.0

5.5

4.5

5.0

4.0

3.5

pH 7.5

7.0

6.5

6.0

5.5

4.5

5.0

4.0

Crustaceans, snails, molluscus, etc. die

Crustaceans, snails, molluscus, etc. die

Salmon, char, trout die

Salmon, char, trout die

Sensitive insects and plant and animal plankton die

Sensitive insects and plant and animal plankton die

Perch and pike die

Perch and pike die

Eel and brook trout die

Eel and brook trout die

Insensitive insects, certain plant and animal plankton can survive

Damage starts at pH less than 6.5

3.5

Insensitive insects, certain plant and animal plankton can survive

Damage starts at pH less than 6.5

White moss increases

All “normal” life gone at pH less than 5

White moss increases

All “normal” life gone at pH less than 5

)LJ(IIHFWRIS+RQDTXDWLFOLIHIRUPV

)LJ(IIHFWRIS+RQDTXDWLFOLIHIRUPV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

UDQJH7KHFDGPLXPUHOHDVHUDWHLQFUHDVHVIURPFP\UDWS+WRFP\HDU DWS+DQGFP\UDWS+>@'HFUHDVHGS+DIIHFWVWKHGLYHUVLW\PRELOLW\ DQGSRSXODWLRQGHQVLW\RIWKHORZHUOLIHIRUPV,QYHUWHEUDWHVLQDFLGLFODNHVLQYDULDEO\ DFFXPXODWH WR[LF WUDFH HOHPHQWV ZKLFK DUH WKHQ SDVVHG RQ WR YHUWHEUDWHV LQ WKH IRRGZHE7KLVFDXVHVGHFOLQLQJILVK\LHOGVDQGRWKHUVHDIRRGV)LJXUHVKRZV WKHVSHFLHVDFLGLW\UHODWLRQVKLSLQWKHZDWHUV

UDQJH7KHFDGPLXPUHOHDVHUDWHLQFUHDVHVIURPFP\UDWS+WRFP\HDU DWS+DQGFP\UDWS+>@'HFUHDVHGS+DIIHFWVWKHGLYHUVLW\PRELOLW\ DQGSRSXODWLRQGHQVLW\RIWKHORZHUOLIHIRUPV,QYHUWHEUDWHVLQDFLGLFODNHVLQYDULDEO\ DFFXPXODWH WR[LF WUDFH HOHPHQWV ZKLFK DUH WKHQ SDVVHG RQ WR YHUWHEUDWHV LQ WKH IRRGZHE7KLVFDXVHVGHFOLQLQJILVK\LHOGVDQGRWKHUVHDIRRGV)LJXUHVKRZV WKHVSHFLHVDFLGLW\UHODWLRQVKLSLQWKHZDWHUV

pH 7.5

7.0

6.5

6.0

5.5

4.5

5.0

4.0

3.5

pH 7.5

7.0

6.5

5.5

4.5

5.0

4.0

Crustaceans, snails, molluscus, etc. die

Salmon, char, trout die

Salmon, char, trout die

Sensitive insects and plant and animal plankton die

Sensitive insects and plant and animal plankton die

Perch and pike die

Eel and brook trout die

Insensitive insects, certain plant and animal plankton can survive

White moss increases

All “normal” life gone at pH less than 5

)LJ(IIHFWRIS+RQDTXDWLFOLIHIRUPV

3.5

Perch and pike die

Eel and brook trout die

Damage starts at pH less than 6.5

6.0

Crustaceans, snails, molluscus, etc. die

Insensitive insects, certain plant and animal plankton can survive

Damage starts at pH less than 6.5

White moss increases

All “normal” life gone at pH less than 5

)LJ(IIHFWRIS+RQDTXDWLFOLIHIRUPV

$FLG5DLQ



$FLG5DLQ



5HGXFHGIRUHVWDUHDDQGDTXDWLFHFRV\VWHPGXHWRDFLGUDLQPHDQVWKDWELUGV DQGRWKHUZLOGOLIHIHHGLQJDQGEUHHGLQJLQVXFKHQYLURQPHQWZLOOQRWEHDEOHWR SUROLIHUDWH

5HGXFHGIRUHVWDUHDDQGDTXDWLFHFRV\VWHPGXHWRDFLGUDLQPHDQVWKDWELUGV DQGRWKHUZLOGOLIHIHHGLQJDQGEUHHGLQJLQVXFKHQYLURQPHQWZLOOQRWEHDEOHWR SUROLIHUDWH

(IIHFWRQ+XPDQ+HDOWK

(IIHFWRQ+XPDQ+HDOWK

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¶VGLVHDVHFKDUDFWHUL]HGE\WKHGHJUDGDWLRQRIWKHEUDLQDQGVHYHUHORVV RI PHPRU\ KDV DOVR EHHQ DWWULEXWHG WR WKH HIIHFW RI KLJK OHYHO RI DOXPLQLXP 7KHUHIRUHDFLGUDLQFDQEHHDVLO\LPSOLFDWHG

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¶VGLVHDVHFKDUDFWHUL]HGE\WKHGHJUDGDWLRQRIWKHEUDLQDQGVHYHUHORVV RI PHPRU\ KDV DOVR EHHQ DWWULEXWHG WR WKH HIIHFW RI KLJK OHYHO RI DOXPLQLXP 7KHUHIRUHDFLGUDLQFDQEHHDVLO\LPSOLFDWHG

%XLOGLQJVDQG0DWHULDOV

%XLOGLQJVDQG0DWHULDOV

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

$FLG5DLQ



$FLG5DLQ



5HGXFHGIRUHVWDUHDDQGDTXDWLFHFRV\VWHPGXHWRDFLGUDLQPHDQVWKDWELUGV DQGRWKHUZLOGOLIHIHHGLQJDQGEUHHGLQJLQVXFKHQYLURQPHQWZLOOQRWEHDEOHWR SUROLIHUDWH

5HGXFHGIRUHVWDUHDDQGDTXDWLFHFRV\VWHPGXHWRDFLGUDLQPHDQVWKDWELUGV DQGRWKHUZLOGOLIHIHHGLQJDQGEUHHGLQJLQVXFKHQYLURQPHQWZLOOQRWEHDEOHWR SUROLIHUDWH

(IIHFWRQ+XPDQ+HDOWK

(IIHFWRQ+XPDQ+HDOWK

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¶VGLVHDVHFKDUDFWHUL]HGE\WKHGHJUDGDWLRQRIWKHEUDLQDQGVHYHUHORVV RI PHPRU\ KDV DOVR EHHQ DWWULEXWHG WR WKH HIIHFW RI KLJK OHYHO RI DOXPLQLXP 7KHUHIRUHDFLGUDLQFDQEHHDVLO\LPSOLFDWHG

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¶VGLVHDVHFKDUDFWHUL]HGE\WKHGHJUDGDWLRQRIWKHEUDLQDQGVHYHUHORVV RI PHPRU\ KDV DOVR EHHQ DWWULEXWHG WR WKH HIIHFW RI KLJK OHYHO RI DOXPLQLXP 7KHUHIRUHDFLGUDLQFDQEHHDVLO\LPSOLFDWHG

%XLOGLQJVDQG0DWHULDOV

%XLOGLQJVDQG0DWHULDOV

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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH(IIHFWRIDFLGUDLQRQPDWHULDOV

7DEOH(IIHFWRIDFLGUDLQRQPDWHULDOV

0DWHULDOV

7\SHRILPSDFW

3ULQFLSDODLU SROOXWDQWV

2WKHU HQYLURQ PHQWDO IDFWRUV

0HWDOV

&RUURVLRQ WDUQLVKLQJ

6XOSKXU R[LGHV 0RLVWXUHDLUVDOW DQGRWKHUDFLGLF SDUWLFXODWHPDWWHU JDVHV

%XLOGLQJ VWRQH

6XUIDFH HURVLRQ VRLOLQJEODFN FUXVW IRUPDWLRQ

6XOSKXU R[LGHV DQGRWKHUDFLG JDVHV

&HUDPLFV DQG JODVV

6XUIDFH HURVLRQ VRLOLQJEODFN FUXVW IRUPDWLRQ

$FLG JDVHV 0RLVWXUH HVSHFLDOO\ WKRVH FRQWDLQLQJ IOXRULGH

0LWLJDWLRQ PHDVXUHV

0DWHULDOV

7\SHRILPSDFW

3ULQFLSDODLU SROOXWDQWV

6XUIDFH SODWLQJ RU FRDWLQJUHSODFHPHQW RIPDWHULDOUHPRYDOWR FRQWUROOHG HQYLURQPHQW

0HWDOV

&RUURVLRQ WDUQLVKLQJ

6XOSKXU R[LGHV 0RLVWXUHDLUVDOW DQGRWKHUDFLGLF SDUWLFXODWHPDWWHU JDVHV

%XLOGLQJ VWRQH

6XUIDFH HURVLRQ VRLOLQJEODFN FUXVW IRUPDWLRQ

6XOSKXU R[LGHV DQGRWKHUDFLG JDVHV

&HUDPLFV DQG JODVV

6XUIDFH HURVLRQ VRLOLQJEODFN FUXVW IRUPDWLRQ

$FLG JDVHV 0RLVWXUH HVSHFLDOO\ WKRVH FRQWDLQLQJ IOXRULGH

0HFKDQLFDO &OHDQLQJLPSUHJQDWLRQ HURVLRQ WHPSHUD UHSODFHPHQW UHVLQV WXUH IOXFWXDWLRQV UHPRYDOWRFRQWUROOHG VDOWV&2 HQYLURQPHQW PLFURRUJDQLVPV 3URWHFWLYH FRDWLQJ UHSODFHPHQW ZLWK PRUH UHVLVWDQWPDWHULDO UHPRYDOWRFRQWUROOHG DWPRVSKHUH

2WKHU HQYLURQ PHQWDO IDFWRUV

0LWLJDWLRQ PHDVXUHV 6XUIDFH SODWLQJ RU FRDWLQJUHSODFHPHQW RIPDWHULDOUHPRYDOWR FRQWUROOHG HQYLURQPHQW

0HFKDQLFDO &OHDQLQJLPSUHJQDWLRQ HURVLRQ WHPSHUD UHSODFHPHQW UHVLQV WXUH IOXFWXDWLRQV UHPRYDOWRFRQWUROOHG VDOWV&2 HQYLURQPHQW PLFURRUJDQLVPV 3URWHFWLYH FRDWLQJ UHSODFHPHQW ZLWK PRUH UHVLVWDQWPDWHULDO UHPRYDOWRFRQWUROOHG DWPRVSKHUH

3DLQWLQJDQG 6XUIDFH HURVLRQ RUJDQLF GLVFRORUDWLRQ FRDWLQJV VRLOLQJ

6XOSKXU GLR[LGH K\GURJHQ VXOSKLGHV

0RLVWXUHVXQOLJKW 5HSDLULQJUHSODFHPHQW R]RQH SDUWLFXODWH ZLWK PRUH UHVLVWDQW PDWWHUPHFKDQLFDO PDWHULDO HURVLRQ PLFUR RUJDQLVPV

3DLQWLQJDQG 6XUIDFH HURVLRQ RUJDQLF GLVFRORUDWLRQ FRDWLQJV VRLOLQJ

6XOSKXU GLR[LGH K\GURJHQ VXOSKLGHV

0RLVWXUHVXQOLJKW 5HSDLULQJUHSODFHPHQW R]RQH SDUWLFXODWH ZLWK PRUH UHVLVWDQW PDWWHUPHFKDQLFDO PDWHULDO HURVLRQ PLFUR RUJDQLVPV

3DSHU

6XOSKXU R[LGHV

0RLVWXUH SK\VLFDO ZHDU DFLGLF PDWHULDOV LQWURGXFHGLQ PDQXIDFWXUH

6\QWKHWLF FRDWLQJV VWRULQJLQFRQWUROOHG DWPRVSKHULF GHDFLGL ILFDWLRQ HQFDSVXODWLRQ LPSUHJQDWLRQ ZLWK RUJDQLF SRO\PHUV

3DSHU

6XOSKXU R[LGHV

0RLVWXUH SK\VLFDO ZHDU DFLGLF PDWHULDOV LQWURGXFHGLQ PDQXIDFWXUH

6\QWKHWLF FRDWLQJV VWRULQJLQFRQWUROOHG DWPRVSKHULF GHDFLGL ILFDWLRQ HQFDSVXODWLRQ LPSUHJQDWLRQ ZLWK RUJDQLF SRO\PHUV

3KRWRJUDSKLF 0LFUREOHPLVKHV PDWHULDOV

6XOSKXU R[LGHV

3DUWLFXODWH PDWWHUPRLVWXUH

5HPRYDOWRFRQWUROOHG DWPRVSKHUH

3KRWRJUDSKLF 0LFUREOHPLVKHV PDWHULDOV

6XOSKXU R[LGHV

3DUWLFXODWH PDWWHUPRLVWXUH

5HPRYDOWRFRQWUROOHG DWPRVSKHUH

7H[WLOH G\HV

)DGLQJFRORXU FKDQJH

1LWURJHQR[LGHV /LJKWWHPSHUDWXUH 5HSODFHPHQWXVHRI R]RQH VXEVWLWXWHV PDWHULDOV LPSUHJQDWLRQ ZLWK SRO\PHUV

7H[WLOH G\HV

)DGLQJFRORXU FKDQJH

1LWURJHQR[LGHV /LJKWWHPSHUDWXUH 5HSODFHPHQWXVHRI R]RQH VXEVWLWXWHV PDWHULDOV LPSUHJQDWLRQ ZLWK SRO\PHUV

/HDWKHU

:HDNHQLQJ SRZGHUHG VXUIDFH

6XOSKXU R[LGHV

3K\VLFDO ZHDU DFLGV LQWURGXFHG LQ PDQXIDFWXUH

5HPRYDOWRDVDIHU DWPRVSKHUH FRQVROLGDWHG ZLWK SRO\PHUV RU UHSODFHPHQWV

/HDWKHU

:HDNHQLQJ SRZGHUHG VXUIDFH

6XOSKXU R[LGHV

3K\VLFDO ZHDU DFLGV LQWURGXFHG LQ PDQXIDFWXUH

5HPRYDOWRDVDIHU DWPRVSKHUH FRQVROLGDWHG ZLWK SRO\PHUV RU UHSODFHPHQWV

5XEEHU

&UDFNLQJ

2]RQH

6XQOLJKWSK\VLFDO ZHDU

$GG DQWLR[LGDQWV WR IRUPXODWLRQ UHSODFH ZLWK PRUH UHVLVWDQW PDWHULDOV

5XEEHU

&UDFNLQJ

2]RQH

6XQOLJKWSK\VLFDO ZHDU

$GG DQWLR[LGDQWV WR IRUPXODWLRQ UHSODFH ZLWK PRUH UHVLVWDQW PDWHULDOV

(PEULWWOHPHQW GLVFRORUDWLRQ

(PEULWWOHPHQW GLVFRORUDWLRQ

 5(0(',$/0($685(6

 5(0(',$/0($685(6

7KHPRVWLPSRUWDQWFRQWUROPHDVXUHVWRDYRLGDFLGUDLQDUHWRUHGXFHWKH62DQG 12[HPLVVLRQV2QHFDQHLWKHUWUHDWWKHHPLVVLRQVWRFRQYHUWWKHPLQWREHQLJQ FRPSRXQGV RU JR IRU DOWHUQDWH IXHOV 0RGLILFDWLRQ RI HQJLQHV UXQQLQJ RQ FRDO SHWURODQGGLHVHOLVDQRWKHURSWLRQ

7KHPRVWLPSRUWDQWFRQWUROPHDVXUHVWRDYRLGDFLGUDLQDUHWRUHGXFHWKH62DQG 12[HPLVVLRQV2QHFDQHLWKHUWUHDWWKHHPLVVLRQVWRFRQYHUWWKHPLQWREHQLJQ FRPSRXQGV RU JR IRU DOWHUQDWH IXHOV 0RGLILFDWLRQ RI HQJLQHV UXQQLQJ RQ FRDO SHWURODQGGLHVHOLVDQRWKHURSWLRQ

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH(IIHFWRIDFLGUDLQRQPDWHULDOV

7DEOH(IIHFWRIDFLGUDLQRQPDWHULDOV

0DWHULDOV

7\SHRILPSDFW

3ULQFLSDODLU SROOXWDQWV

2WKHU HQYLURQ PHQWDO IDFWRUV

0HWDOV

&RUURVLRQ WDUQLVKLQJ

6XOSKXU R[LGHV 0RLVWXUHDLUVDOW DQGRWKHUDFLGLF SDUWLFXODWHPDWWHU JDVHV

%XLOGLQJ VWRQH

6XUIDFH HURVLRQ VRLOLQJEODFN FUXVW IRUPDWLRQ

6XOSKXU R[LGHV DQGRWKHUDFLG JDVHV

&HUDPLFV DQG JODVV

6XUIDFH HURVLRQ VRLOLQJEODFN FUXVW IRUPDWLRQ

$FLG JDVHV 0RLVWXUH HVSHFLDOO\ WKRVH FRQWDLQLQJ IOXRULGH

0LWLJDWLRQ PHDVXUHV

0DWHULDOV

7\SHRILPSDFW

3ULQFLSDODLU SROOXWDQWV

6XUIDFH SODWLQJ RU FRDWLQJUHSODFHPHQW RIPDWHULDOUHPRYDOWR FRQWUROOHG HQYLURQPHQW

0HWDOV

&RUURVLRQ WDUQLVKLQJ

6XOSKXU R[LGHV 0RLVWXUHDLUVDOW DQGRWKHUDFLGLF SDUWLFXODWHPDWWHU JDVHV

%XLOGLQJ VWRQH

6XUIDFH HURVLRQ VRLOLQJEODFN FUXVW IRUPDWLRQ

6XOSKXU R[LGHV DQGRWKHUDFLG JDVHV

&HUDPLFV DQG JODVV

6XUIDFH HURVLRQ VRLOLQJEODFN FUXVW IRUPDWLRQ

$FLG JDVHV 0RLVWXUH HVSHFLDOO\ WKRVH FRQWDLQLQJ IOXRULGH

0HFKDQLFDO &OHDQLQJLPSUHJQDWLRQ HURVLRQ WHPSHUD UHSODFHPHQW UHVLQV WXUH IOXFWXDWLRQV UHPRYDOWRFRQWUROOHG VDOWV&2 HQYLURQPHQW PLFURRUJDQLVPV 3URWHFWLYH FRDWLQJ UHSODFHPHQW ZLWK PRUH UHVLVWDQWPDWHULDO UHPRYDOWRFRQWUROOHG DWPRVSKHUH

2WKHU HQYLURQ PHQWDO IDFWRUV

0LWLJDWLRQ PHDVXUHV 6XUIDFH SODWLQJ RU FRDWLQJUHSODFHPHQW RIPDWHULDOUHPRYDOWR FRQWUROOHG HQYLURQPHQW

0HFKDQLFDO &OHDQLQJLPSUHJQDWLRQ HURVLRQ WHPSHUD UHSODFHPHQW UHVLQV WXUH IOXFWXDWLRQV UHPRYDOWRFRQWUROOHG VDOWV&2 HQYLURQPHQW PLFURRUJDQLVPV 3URWHFWLYH FRDWLQJ UHSODFHPHQW ZLWK PRUH UHVLVWDQWPDWHULDO UHPRYDOWRFRQWUROOHG DWPRVSKHUH

3DLQWLQJDQG 6XUIDFH HURVLRQ RUJDQLF GLVFRORUDWLRQ FRDWLQJV VRLOLQJ

6XOSKXU GLR[LGH K\GURJHQ VXOSKLGHV

0RLVWXUHVXQOLJKW 5HSDLULQJUHSODFHPHQW R]RQH SDUWLFXODWH ZLWK PRUH UHVLVWDQW PDWWHUPHFKDQLFDO PDWHULDO HURVLRQ PLFUR RUJDQLVPV

3DLQWLQJDQG 6XUIDFH HURVLRQ RUJDQLF GLVFRORUDWLRQ FRDWLQJV VRLOLQJ

6XOSKXU GLR[LGH K\GURJHQ VXOSKLGHV

0RLVWXUHVXQOLJKW 5HSDLULQJUHSODFHPHQW R]RQH SDUWLFXODWH ZLWK PRUH UHVLVWDQW PDWWHUPHFKDQLFDO PDWHULDO HURVLRQ PLFUR RUJDQLVPV

3DSHU

6XOSKXU R[LGHV

0RLVWXUH SK\VLFDO ZHDU DFLGLF PDWHULDOV LQWURGXFHGLQ PDQXIDFWXUH

6\QWKHWLF FRDWLQJV VWRULQJLQFRQWUROOHG DWPRVSKHULF GHDFLGL ILFDWLRQ HQFDSVXODWLRQ LPSUHJQDWLRQ ZLWK RUJDQLF SRO\PHUV

3DSHU

6XOSKXU R[LGHV

0RLVWXUH SK\VLFDO ZHDU DFLGLF PDWHULDOV LQWURGXFHGLQ PDQXIDFWXUH

6\QWKHWLF FRDWLQJV VWRULQJLQFRQWUROOHG DWPRVSKHULF GHDFLGL ILFDWLRQ HQFDSVXODWLRQ LPSUHJQDWLRQ ZLWK RUJDQLF SRO\PHUV

3KRWRJUDSKLF 0LFUREOHPLVKHV PDWHULDOV

6XOSKXU R[LGHV

3DUWLFXODWH PDWWHUPRLVWXUH

5HPRYDOWRFRQWUROOHG DWPRVSKHUH

3KRWRJUDSKLF 0LFUREOHPLVKHV PDWHULDOV

6XOSKXU R[LGHV

3DUWLFXODWH PDWWHUPRLVWXUH

5HPRYDOWRFRQWUROOHG DWPRVSKHUH

7H[WLOH G\HV

)DGLQJFRORXU FKDQJH

1LWURJHQR[LGHV /LJKWWHPSHUDWXUH 5HSODFHPHQWXVHRI R]RQH VXEVWLWXWHV PDWHULDOV LPSUHJQDWLRQ ZLWK SRO\PHUV

7H[WLOH G\HV

)DGLQJFRORXU FKDQJH

1LWURJHQR[LGHV /LJKWWHPSHUDWXUH 5HSODFHPHQWXVHRI R]RQH VXEVWLWXWHV PDWHULDOV LPSUHJQDWLRQ ZLWK SRO\PHUV

/HDWKHU

:HDNHQLQJ SRZGHUHG VXUIDFH

6XOSKXU R[LGHV

3K\VLFDO ZHDU DFLGV LQWURGXFHG LQ PDQXIDFWXUH

5HPRYDOWRDVDIHU DWPRVSKHUH FRQVROLGDWHG ZLWK SRO\PHUV RU UHSODFHPHQWV

/HDWKHU

:HDNHQLQJ SRZGHUHG VXUIDFH

6XOSKXU R[LGHV

3K\VLFDO ZHDU DFLGV LQWURGXFHG LQ PDQXIDFWXUH

5HPRYDOWRDVDIHU DWPRVSKHUH FRQVROLGDWHG ZLWK SRO\PHUV RU UHSODFHPHQWV

5XEEHU

&UDFNLQJ

2]RQH

6XQOLJKWSK\VLFDO ZHDU

$GG DQWLR[LGDQWV WR IRUPXODWLRQ UHSODFH ZLWK PRUH UHVLVWDQW PDWHULDOV

5XEEHU

&UDFNLQJ

2]RQH

6XQOLJKWSK\VLFDO ZHDU

$GG DQWLR[LGDQWV WR IRUPXODWLRQ UHSODFH ZLWK PRUH UHVLVWDQW PDWHULDOV

(PEULWWOHPHQW GLVFRORUDWLRQ

(PEULWWOHPHQW GLVFRORUDWLRQ

 5(0(',$/0($685(6

 5(0(',$/0($685(6

7KHPRVWLPSRUWDQWFRQWUROPHDVXUHVWRDYRLGDFLGUDLQDUHWRUHGXFHWKH62DQG 12[HPLVVLRQV2QHFDQHLWKHUWUHDWWKHHPLVVLRQVWRFRQYHUWWKHPLQWREHQLJQ FRPSRXQGV RU JR IRU DOWHUQDWH IXHOV 0RGLILFDWLRQ RI HQJLQHV UXQQLQJ RQ FRDO SHWURODQGGLHVHOLVDQRWKHURSWLRQ

7KHPRVWLPSRUWDQWFRQWUROPHDVXUHVWRDYRLGDFLGUDLQDUHWRUHGXFHWKH62DQG 12[HPLVVLRQV2QHFDQHLWKHUWUHDWWKHHPLVVLRQVWRFRQYHUWWKHPLQWREHQLJQ FRPSRXQGV RU JR IRU DOWHUQDWH IXHOV 0RGLILFDWLRQ RI HQJLQHV UXQQLQJ RQ FRDO SHWURODQGGLHVHOLVDQRWKHURSWLRQ

$FLG5DLQ



$FLG5DLQ



%UHHGLQJRIKDWFKHU\ILVKLQDFLGLILHGZDWHUFDQEHDQRWKHURSWLRQWRDFFOLPDWL]H WKHPIRUFKDQJLQJS+FRQGLWLRQV)UHTXHQWDGGLWLRQRIQHXWUDOL]LQJDJHQWVWRPDLQWDLQ WKHEXIIHULQJS+LVDQLPSRUWDQWFRQFHSW7KLVRSWLRQKDVEHHQWULHGZLWKYDU\LQJ GHJUHHVRIVXFFHVVLQLVRODWHGODNHV/LPHRUFDOFLXPFDUERQDWHLVWKHSUHIHUUHG PDWHULDO

%UHHGLQJRIKDWFKHU\ILVKLQDFLGLILHGZDWHUFDQEHDQRWKHURSWLRQWRDFFOLPDWL]H WKHPIRUFKDQJLQJS+FRQGLWLRQV)UHTXHQWDGGLWLRQRIQHXWUDOL]LQJDJHQWVWRPDLQWDLQ WKHEXIIHULQJS+LVDQLPSRUWDQWFRQFHSW7KLVRSWLRQKDVEHHQWULHGZLWKYDU\LQJ GHJUHHVRIVXFFHVVLQLVRODWHGODNHV/LPHRUFDOFLXPFDUERQDWHLVWKHSUHIHUUHG PDWHULDO

48(67,216

48(67,216

 'HULYHDQH[SUHVVLRQIRUWKHS+FDOFXODWLRQRIDFLGUDLQ  7KHDYHUDJHHQHUJ\UHTXLUHPHQWIRUHYDSRUDWLRQRIZDWHULV:PDQG WKHODWHQWKHDWRIYDSRUL]DWLRQLVî-NJ$VVXPLQJWKDWWKRI WKHHDUWKLVFRYHUHGE\ZDWHUHVWLPDWHWKHWRWDODQQXDOUDLQIDOOLQP\HDU  ,QGLFDWHWKHUHDFWLRQSDWKZD\VE\ZKLFK62DQG12DUHFRQYHUWHGLQWR WKHLUUHVSHFWLYHDFLGLFDHURVROV  ([SODLQZK\QLWULFDFLGFRQFHQWUDWLRQFKDQJHVDWOHDVWWZLFHLQDGD\LQ XUEDQ FHQWUHV  :ULWHDVKRUWQRWHRQZHWDQGGU\GHSRVLWLRQVRIDFLGLFDHURVROV  &RPEXVWLRQ RI FRDO LV LQWULFDWHO\ UHODWHG WR WKH DFLG UDLQ SKHQRPHQRQ (ODERUDWH  :KDW DUH WKH HIIHFWV RI DFLG UDLQ RQ D  VRLO PLFURQXWULHQWV E  DTXDWLF HFRV\VWHPV DQG F  IRUHVWV" 5()(5(1&(6

 'HULYHDQH[SUHVVLRQIRUWKHS+FDOFXODWLRQRIDFLGUDLQ  7KHDYHUDJHHQHUJ\UHTXLUHPHQWIRUHYDSRUDWLRQRIZDWHULV:PDQG WKHODWHQWKHDWRIYDSRUL]DWLRQLVî-NJ$VVXPLQJWKDWWKRI WKHHDUWKLVFRYHUHGE\ZDWHUHVWLPDWHWKHWRWDODQQXDOUDLQIDOOLQP\HDU  ,QGLFDWHWKHUHDFWLRQSDWKZD\VE\ZKLFK62DQG12DUHFRQYHUWHGLQWR WKHLUUHVSHFWLYHDFLGLFDHURVROV  ([SODLQZK\QLWULFDFLGFRQFHQWUDWLRQFKDQJHVDWOHDVWWZLFHLQDGD\LQ XUEDQ FHQWUHV  :ULWHDVKRUWQRWHRQZHWDQGGU\GHSRVLWLRQVRIDFLGLFDHURVROV  &RPEXVWLRQ RI FRDO LV LQWULFDWHO\ UHODWHG WR WKH DFLG UDLQ SKHQRPHQRQ (ODERUDWH  :KDW DUH WKH HIIHFWV RI DFLG UDLQ RQ D  VRLO PLFURQXWULHQWV E  DTXDWLF HFRV\VWHPV DQG F  IRUHVWV" 5()(5(1&(6

 6:%HQVRQ&KHPLFDO5HY  &DOYHUW-*DQG:56WRFNZHOOLQ³62&2DQG122[LGDWLRQ0HFKDQLVPV $WPRVSKHULF &RQVLGHUDWLRQ´ $FLG 3UHFLSLWDWLRQ 6HULHV (G -,7 (DVOH\ %XWWHUZRUWK   '' 'DYLV $5 5DYLVKDQNDUD DQG 6 )LVFKHU *HRSK\ 5HV /HWWHUV     $* 5XVVHO *- 0FUDH DQG *5 &DVV ³$FLG 'HSRVLWLRQ RI 3KRWRFKHPLFDO 2[LGDWLRQ3URGXFWV´&'H:LVSHODHUH(G3OHQXP3UHVV1HZ@ ,Q&KHQQDLQRLVHOHYHOVRQLPSRUWDQWDUWHULDOURDGVYDULHVEHWZHHQ± G%ZKLOHLQ/XFNQRZLWLVG%DQGG%UHVSHFWLYHO\6LQFHQRLVHOHYHOLVLQWKH ORJDULWKPLFVFDOHHDFKGHFLEHOLQFUHDVHPHDQVVXEVWDQWLDOQRLVHSROOXWLRQ7KH&55, UHSRUWZDUQVWKDWWKHUHLVDJUHDWQHHGWRFRQWDLQKLJKHUQRLVHHPLWWLQJVRXUFHV 8VHRISUHVVXUHKRUQVFDXVHVFRQIXVLRQDQGDFFLGHQWV ,Q DQRWKHU VWXG\ FRQGXFWHG E\ 9DWDYDUDQ UHVHDUFKHUV 36 6LQGKX DQG FRZRUNHUVIRXQGWKDWLQ3DOLND%D]DDU1HZ'HOKLZLWKVKRSVGHDOLQJPRVWO\ ZLWKHOHFWURQLFJDGJHWVWKHQRLVHOHYHOYDULHGIURP ±G%WKURXJKRXWWKHGD\ 0RVWRIWKHYLVLWRUVDQGVKRSRZQHUVFRPSODLQHGRIFRQVWDQWKHDGDFKHVIDWLJXH DQGLUULWDWLRQ 7KHUHIRUHWKHUHLVDQXUJHQWQHHGIRUWDNLQJVWULQJHQWPHDVXUHVWREULQJGRZQ WKHQRLVHSROOXWLRQWRDFFHSWDEOHOHYHOVDOORYHU,QGLD*RYHUQPHQWOHJLVODWLRQVDQG VWULFWLPSOHPHQWDWLRQDUHQHFHVVDU\WRDFKLHYHWKLVJRDO3HUPLVVLEOHQRLVHOHYHOVLQ YDULRXVDUHDVDUHVKRZQLQ7DEOH

7DEOH  $FFHSWDEOH QRLVH FULWHULD IRU SXEOLF IXQFWLRQV

7DEOH  $FFHSWDEOH QRLVH FULWHULD IRU SXEOLF IXQFWLRQV

$UHD

/HYHO

(IIHFW

$UHD

/HYHO

(IIHFW

$OO DUHDV

/HT G%

+HDULQJORVV

$OO DUHDV

/HT G%

+HDULQJORVV

,QUHVLGHQWLDODUHDVDQGIDUPVDQGRWKHURXWGRRUDUHDV ZKHUHSHRSOHVSHQGYDU\LQJDPRXQWVRIWLPHDQGLQ RWKHU SODFHV LQ ZKLFK TXLHWQHVV LV D EDVLV IRU XVH

/GQG%

2XWGRRU DFWLYLW\

,QUHVLGHQWLDODUHDVDQGIDUPVDQGRWKHURXWGRRUDUHDV ZKHUHSHRSOHVSHQGYDU\LQJDPRXQWVRIWLPHDQGLQ RWKHU SODFHV LQ ZKLFK TXLHWQHVV LV D EDVLV IRU XVH

/GQG%

2XWGRRU DFWLYLW\

2XWGRRUDUHDVZKHUHSHRSOHVSHQGOLPLWHGDPRXQWRI WLPH VXFK DV VFKRRO\DUGV DQG SOD\JURXQGV HWF

/HT G%

2XWGRRUDUHDVZKHUHSHRSOHVSHQGOLPLWHGDPRXQWRI WLPH VXFK DV VFKRRO\DUGV DQG SOD\JURXQGV HWF

/HT G%

,QGRRUUHVLGHQWLDODUHDV

/GQG%

,QGRRU DFWLYLW\

,QGRRUUHVLGHQWLDODUHDV

/GQG%

,QGRRU DFWLYLW\

2WKHULQGRRUDUHDVZLWKKXPDQDFWLYLWLHV VXFK DV VFKRROV

/HT G%

,QWHUIHUHQFH DQG DQQR\DQFH

2WKHULQGRRUDUHDVZLWKKXPDQDFWLYLWLHV VXFK DV VFKRROV

/HT G%

,QWHUIHUHQFH DQG DQQR\DQFH

1RLVH3ROOXWLRQ



1RLVH3ROOXWLRQ



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± G%ORXGVSHDNHUQRLVHFDXVHVGLODWLRQRIWKHSXSLOVRIHYHQ DVOXPEHULQJSHUVRQDORQJZLWKLQFUHDVHGLQWDNHRIR[\JHQFDXVLQJSDOSLWDWLRQ $FFRUGLQJWRDUHFHQWVWXG\FRQGXFWHGE\&HQWUDO5RDG5HVHDUFK,QVWLWXWHLQ FROODERUDWLRQ&55, ZLWK$OO,QGLD,QVWLWXWHRI0HGLFDO6FLHQFHV$,,06 DQG 'HOKL3ROLFHDWWKHLPSRUWDQWLQWHUVHFWLRQVLQ1HZ'HOKLWKHPD[LPXPDQGPLQLPXP QRLVHOHYHOVYDULHGEHWZHHQ±G%DQG±G%>@ ,Q&KHQQDLQRLVHOHYHOVRQLPSRUWDQWDUWHULDOURDGVYDULHVEHWZHHQ± G%ZKLOHLQ/XFNQRZLWLVG%DQGG%UHVSHFWLYHO\6LQFHQRLVHOHYHOLVLQWKH ORJDULWKPLFVFDOHHDFKGHFLEHOLQFUHDVHPHDQVVXEVWDQWLDOQRLVHSROOXWLRQ7KH&55, UHSRUWZDUQVWKDWWKHUHLVDJUHDWQHHGWRFRQWDLQKLJKHUQRLVHHPLWWLQJVRXUFHV 8VHRISUHVVXUHKRUQVFDXVHVFRQIXVLRQDQGDFFLGHQWV ,Q DQRWKHU VWXG\ FRQGXFWHG E\ 9DWDYDUDQ UHVHDUFKHUV 36 6LQGKX DQG FRZRUNHUVIRXQGWKDWLQ3DOLND%D]DDU1HZ'HOKLZLWKVKRSVGHDOLQJPRVWO\ ZLWKHOHFWURQLFJDGJHWVWKHQRLVHOHYHOYDULHGIURP ±G%WKURXJKRXWWKHGD\ 0RVWRIWKHYLVLWRUVDQGVKRSRZQHUVFRPSODLQHGRIFRQVWDQWKHDGDFKHVIDWLJXH DQGLUULWDWLRQ 7KHUHIRUHWKHUHLVDQXUJHQWQHHGIRUWDNLQJVWULQJHQWPHDVXUHVWREULQJGRZQ WKHQRLVHSROOXWLRQWRDFFHSWDEOHOHYHOVDOORYHU,QGLD*RYHUQPHQWOHJLVODWLRQVDQG VWULFWLPSOHPHQWDWLRQDUHQHFHVVDU\WRDFKLHYHWKLVJRDO3HUPLVVLEOHQRLVHOHYHOVLQ YDULRXVDUHDVDUHVKRZQLQ7DEOH

WROHUDQFHOLPLWIRUKRXUH[SRVXUH$WG%WKHWROHUDQFHOHYHOGURSVWRKRXUV DQGDWG%LWLVRQO\WZRKRXUV 1RLVHSROOXWLRQOHYHOVLQXUEDQDUHDVDQGDORQJWKHKLJKZD\VKDYHLQFUHDVHG WUHPHQGRXVO\GXHWRYHKLFXODUWUDIILF3UHVVXUHKRUQVLQYHKLFOHVDUHEHLQJGHVLJQHG WR IULJKWHQ RWKHU PRWRULVWV DQG SHGHVWULDQV RXW RI WKH ZD\ 1RLVH OHYHOV DUH SDUWLFXODUO\KLJKQHDUUDLOZD\MXQFWLRQVWUDIILFVLJQDOVEXVWHUPLQDOVWUDQVLWDUHDV DQGILVKDQGYHJHWDEOHVPDUNHWV4XLWHRIWHQWKHQRLVHOHYHOVH[FHHGG%DWWKHVH MXQFWLRQV7KHVLWXDWLRQLVSDUWLFXODUO\VHULRXVLQDQGDURXQGDLUSRUWV 5HFUHDWLRQDO QRLVH LV EHFRPLQJ PRUH ZLGHVSUHDG LQ FLWLHV DQG WRZQV /RXGVSHDNHUV SOD\ KDYRF GXULQJ PDUULDJHV IHVWLYDOV DQG PXVLFDO SURJUDPPHV SDUWLFXODUO\DWQLJKW(YHQDWG%ORXGVSHDNHUVFDQDZDNHQDSHUVRQIURPGHHS VOHHS%HWZHHQ ± G%ORXGVSHDNHUQRLVHFDXVHVGLODWLRQRIWKHSXSLOVRIHYHQ DVOXPEHULQJSHUVRQDORQJZLWKLQFUHDVHGLQWDNHRIR[\JHQFDXVLQJSDOSLWDWLRQ $FFRUGLQJWRDUHFHQWVWXG\FRQGXFWHGE\&HQWUDO5RDG5HVHDUFK,QVWLWXWHLQ FROODERUDWLRQ&55, ZLWK$OO,QGLD,QVWLWXWHRI0HGLFDO6FLHQFHV$,,06 DQG 'HOKL3ROLFHDWWKHLPSRUWDQWLQWHUVHFWLRQVLQ1HZ'HOKLWKHPD[LPXPDQGPLQLPXP QRLVHOHYHOVYDULHGEHWZHHQ±G%DQG±G%>@ ,Q&KHQQDLQRLVHOHYHOVRQLPSRUWDQWDUWHULDOURDGVYDULHVEHWZHHQ± G%ZKLOHLQ/XFNQRZLWLVG%DQGG%UHVSHFWLYHO\6LQFHQRLVHOHYHOLVLQWKH ORJDULWKPLFVFDOHHDFKGHFLEHOLQFUHDVHPHDQVVXEVWDQWLDOQRLVHSROOXWLRQ7KH&55, UHSRUWZDUQVWKDWWKHUHLVDJUHDWQHHGWRFRQWDLQKLJKHUQRLVHHPLWWLQJVRXUFHV 8VHRISUHVVXUHKRUQVFDXVHVFRQIXVLRQDQGDFFLGHQWV ,Q DQRWKHU VWXG\ FRQGXFWHG E\ 9DWDYDUDQ UHVHDUFKHUV 36 6LQGKX DQG FRZRUNHUVIRXQGWKDWLQ3DOLND%D]DDU1HZ'HOKLZLWKVKRSVGHDOLQJPRVWO\ ZLWKHOHFWURQLFJDGJHWVWKHQRLVHOHYHOYDULHGIURP ±G%WKURXJKRXWWKHGD\ 0RVWRIWKHYLVLWRUVDQGVKRSRZQHUVFRPSODLQHGRIFRQVWDQWKHDGDFKHVIDWLJXH DQGLUULWDWLRQ 7KHUHIRUHWKHUHLVDQXUJHQWQHHGIRUWDNLQJVWULQJHQWPHDVXUHVWREULQJGRZQ WKHQRLVHSROOXWLRQWRDFFHSWDEOHOHYHOVDOORYHU,QGLD*RYHUQPHQWOHJLVODWLRQVDQG VWULFWLPSOHPHQWDWLRQDUHQHFHVVDU\WRDFKLHYHWKLVJRDO3HUPLVVLEOHQRLVHOHYHOVLQ YDULRXVDUHDVDUHVKRZQLQ7DEOH

7DEOH  $FFHSWDEOH QRLVH FULWHULD IRU SXEOLF IXQFWLRQV

7DEOH  $FFHSWDEOH QRLVH FULWHULD IRU SXEOLF IXQFWLRQV

$UHD

/HYHO

(IIHFW

$UHD

/HYHO

(IIHFW

$OO DUHDV

/HT G%

+HDULQJORVV

,QUHVLGHQWLDODUHDVDQGIDUPVDQGRWKHURXWGRRUDUHDV ZKHUHSHRSOHVSHQGYDU\LQJDPRXQWVRIWLPHDQGLQ RWKHU SODFHV LQ ZKLFK TXLHWQHVV LV D EDVLV IRU XVH

/GQG%

2XWGRRU DFWLYLW\

$OO DUHDV

/HT G%

+HDULQJORVV

,QUHVLGHQWLDODUHDVDQGIDUPVDQGRWKHURXWGRRUDUHDV ZKHUHSHRSOHVSHQGYDU\LQJDPRXQWVRIWLPHDQGLQ RWKHU SODFHV LQ ZKLFK TXLHWQHVV LV D EDVLV IRU XVH

/GQG%

2XWGRRU DFWLYLW\

2XWGRRUDUHDVZKHUHSHRSOHVSHQGOLPLWHGDPRXQWRI WLPH VXFK DV VFKRRO\DUGV DQG SOD\JURXQGV HWF

/HT G%

2XWGRRUDUHDVZKHUHSHRSOHVSHQGOLPLWHGDPRXQWRI WLPH VXFK DV VFKRRO\DUGV DQG SOD\JURXQGV HWF

/HT G%

,QGRRUUHVLGHQWLDODUHDV

/GQG%

,QGRRU DFWLYLW\

,QGRRUUHVLGHQWLDODUHDV

/GQG%

,QGRRU DFWLYLW\

2WKHULQGRRUDUHDVZLWKKXPDQDFWLYLWLHV VXFK DV VFKRROV

/HT G%

,QWHUIHUHQFH DQG DQQR\DQFH

2WKHULQGRRUDUHDVZLWKKXPDQDFWLYLWLHV VXFK DV VFKRROV

/HT G%

,QWHUIHUHQFH DQG DQQR\DQFH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 12,6( &21752/ &5,7(5,$

 12,6( &21752/ &5,7(5,$

26+$KDVHYROYHGDFRPSOLDQFHSODQIRUQRLVHSROOXWLRQFRQWURO26+$EXOOHWLQ JXLGHOLQHV VWDWHWKDWZKHQHYHUDQRLVHVXUYH\VKRZVQRLVHOHYHOVLQH[FHVV RIWKHSUHVFULEHGOLPLWVQHFHVVDU\VWHSVWRUHGXFHWKHQRLVHH[SRVXUHWREHORZWKH DFFHSWDEOHOLPLWVEHWDNHQ>@$QDFWLRQSODQPXVWEHSUHSDUHGDQGLPSOHPHQWHGLQ DSKDVHGPDQQHU7KHFRPSOLDQFHSODQUHFRPPHQGV

26+$KDVHYROYHGDFRPSOLDQFHSODQIRUQRLVHSROOXWLRQFRQWURO26+$EXOOHWLQ JXLGHOLQHV VWDWHWKDWZKHQHYHUDQRLVHVXUYH\VKRZVQRLVHOHYHOVLQH[FHVV RIWKHSUHVFULEHGOLPLWVQHFHVVDU\VWHSVWRUHGXFHWKHQRLVHH[SRVXUHWREHORZWKH DFFHSWDEOHOLPLWVEHWDNHQ>@$QDFWLRQSODQPXVWEHSUHSDUHGDQGLPSOHPHQWHGLQ DSKDVHGPDQQHU7KHFRPSOLDQFHSODQUHFRPPHQGV

‡ ‡

‡ ‡

‡ ‡ ‡ ‡ ‡ ‡

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

‡ ‡ ‡ ‡ ‡ ‡

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

,QVRPHFRXQWULHVHJLQ-DSDQ HDUSURWHFWLRQGHYLFHVDUHFRQVLGHUHGWKH PRVW HIIHFWLYH ZD\ IRU KDQGOLQJ QRLVH SROOXWLRQ 8QIRUWXQDWHO\ WKLV LV QRW D FRPSOHWHO\VDWLVIDFWRU\VROXWLRQWRQRLVHSROOXWLRQ(DUSURWHFWRUVDUHXQFRPIRUWDEOH WRZHDUDVWKHHDUVEHFRPHKRWDQGVZHDW\,WPD\FDXVHSDLQDOVR7KH\FUHDWH FRPPXQLFDWLRQSUREOHPVDQGVRPHWLPHVRQHFDQ¶WKHDUZDUQLQJVLJQDOV/DVWO\ WKH PRVW LPSRUWDQW UHDVRQ LV WKDW HDUSOXJV FDQ H[DFHUEDWH VNLQ DQG RXWHU HDU GLVHDVHVVXFKDVRWLWLV8VHRIFRUWLVSRULQGURSVRURLQWPHQWZLOOQRUPDOO\RYHUFRPH WKLVSUREOHP 7KHILUVWFRXQWU\WRLQWURGXFHLQGXVWULDOQRLVHUHJXODWLRQVZDV86$,Q :DOVK+HDO\DFWZDVUHYLVHGWRLQFOXGHVWDQGDUGVIRUQRLVHH[SRVXUHVZKLFKDUH JLYHQLQ7DEOH

,QVRPHFRXQWULHVHJLQ-DSDQ HDUSURWHFWLRQGHYLFHVDUHFRQVLGHUHGWKH PRVW HIIHFWLYH ZD\ IRU KDQGOLQJ QRLVH SROOXWLRQ 8QIRUWXQDWHO\ WKLV LV QRW D FRPSOHWHO\VDWLVIDFWRU\VROXWLRQWRQRLVHSROOXWLRQ(DUSURWHFWRUVDUHXQFRPIRUWDEOH WRZHDUDVWKHHDUVEHFRPHKRWDQGVZHDW\,WPD\FDXVHSDLQDOVR7KH\FUHDWH FRPPXQLFDWLRQSUREOHPVDQGVRPHWLPHVRQHFDQ¶WKHDUZDUQLQJVLJQDOV/DVWO\ WKH PRVW LPSRUWDQW UHDVRQ LV WKDW HDUSOXJV FDQ H[DFHUEDWH VNLQ DQG RXWHU HDU GLVHDVHVVXFKDVRWLWLV8VHRIFRUWLVSRULQGURSVRURLQWPHQWZLOOQRUPDOO\RYHUFRPH WKLVSUREOHP 7KHILUVWFRXQWU\WRLQWURGXFHLQGXVWULDOQRLVHUHJXODWLRQVZDV86$,Q :DOVK+HDO\DFWZDVUHYLVHGWRLQFOXGHVWDQGDUGVIRUQRLVHH[SRVXUHVZKLFKDUH JLYHQLQ7DEOH

7DEOH3HUPLVVLEOHQRLVHOHYHOV

7DEOH3HUPLVVLEOHQRLVHOHYHOV

/RFDWLRQ &LW\$UHD 5XUDO$UHD 5HVLGHQWLDO$UHD8UEDQ 6XEXUEDQ $UHDV 8UEDQ%XVLQHVV ,QGXVWULDO$UHDV

1RLVHOHYHOG% ± ± ± ± ± ±

/RFDWLRQ

1RLVHOHYHOG%

0XVLF7KHDWUH 5DGLR796WXGLR +RVSLWDOV &RQIHUHQFH URRPV 3ULYDWH RIILFHV &RXUWURRPV %DQNDQG5HVWDXUDQWV

± ± ± ± ± ± ±

/RFDWLRQ &LW\$UHD 5XUDO$UHD 5HVLGHQWLDO$UHD8UEDQ 6XEXUEDQ $UHDV 8UEDQ%XVLQHVV ,QGXVWULDO$UHDV

1RLVHOHYHOG% ± ± ± ± ± ±

/RFDWLRQ

1RLVHOHYHOG%

0XVLF7KHDWUH 5DGLR796WXGLR +RVSLWDOV &RQIHUHQFH URRPV 3ULYDWH RIILFHV &RXUWURRPV %DQNDQG5HVWDXUDQWV

± ± ± ± ± ± ±

7KHVHVWDQGDUGVFRYHUHGRQO\PLOOLRQZRUNHUVRXWRIWKHPLOOLRQQRQ JRYHUQPHQWDODQGQRQDJULFXOWXUDOZRUNIRUFH6XEVHTXHQWO\WKHVHVWDQGDUGVZHUH H[WHQGHGE\DODZWREHDSSOLFDEOHWRDOO86FRPSDQLHV

7KHVHVWDQGDUGVFRYHUHGRQO\PLOOLRQZRUNHUVRXWRIWKHPLOOLRQQRQ JRYHUQPHQWDODQGQRQDJULFXOWXUDOZRUNIRUFH6XEVHTXHQWO\WKHVHVWDQGDUGVZHUH H[WHQGHGE\DODZWREHDSSOLFDEOHWRDOO86FRPSDQLHV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 12,6( &21752/ &5,7(5,$

 12,6( &21752/ &5,7(5,$

26+$KDVHYROYHGDFRPSOLDQFHSODQIRUQRLVHSROOXWLRQFRQWURO26+$EXOOHWLQ JXLGHOLQHV VWDWHWKDWZKHQHYHUDQRLVHVXUYH\VKRZVQRLVHOHYHOVLQH[FHVV RIWKHSUHVFULEHGOLPLWVQHFHVVDU\VWHSVWRUHGXFHWKHQRLVHH[SRVXUHWREHORZWKH DFFHSWDEOHOLPLWVEHWDNHQ>@$QDFWLRQSODQPXVWEHSUHSDUHGDQGLPSOHPHQWHGLQ DSKDVHGPDQQHU7KHFRPSOLDQFHSODQUHFRPPHQGV

26+$KDVHYROYHGDFRPSOLDQFHSODQIRUQRLVHSROOXWLRQFRQWURO26+$EXOOHWLQ JXLGHOLQHV VWDWHWKDWZKHQHYHUDQRLVHVXUYH\VKRZVQRLVHOHYHOVLQH[FHVV RIWKHSUHVFULEHGOLPLWVQHFHVVDU\VWHSVWRUHGXFHWKHQRLVHH[SRVXUHWREHORZWKH DFFHSWDEOHOLPLWVEHWDNHQ>@$QDFWLRQSODQPXVWEHSUHSDUHGDQGLPSOHPHQWHGLQ DSKDVHGPDQQHU7KHFRPSOLDQFHSODQUHFRPPHQGV

‡ ‡

‡ ‡

‡ ‡ ‡ ‡ ‡ ‡

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

‡ ‡ ‡ ‡ ‡ ‡

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

,QVRPHFRXQWULHVHJLQ-DSDQ HDUSURWHFWLRQGHYLFHVDUHFRQVLGHUHGWKH PRVW HIIHFWLYH ZD\ IRU KDQGOLQJ QRLVH SROOXWLRQ 8QIRUWXQDWHO\ WKLV LV QRW D FRPSOHWHO\VDWLVIDFWRU\VROXWLRQWRQRLVHSROOXWLRQ(DUSURWHFWRUVDUHXQFRPIRUWDEOH WRZHDUDVWKHHDUVEHFRPHKRWDQGVZHDW\,WPD\FDXVHSDLQDOVR7KH\FUHDWH FRPPXQLFDWLRQSUREOHPVDQGVRPHWLPHVRQHFDQ¶WKHDUZDUQLQJVLJQDOV/DVWO\ WKH PRVW LPSRUWDQW UHDVRQ LV WKDW HDUSOXJV FDQ H[DFHUEDWH VNLQ DQG RXWHU HDU GLVHDVHVVXFKDVRWLWLV8VHRIFRUWLVSRULQGURSVRURLQWPHQWZLOOQRUPDOO\RYHUFRPH WKLVSUREOHP 7KHILUVWFRXQWU\WRLQWURGXFHLQGXVWULDOQRLVHUHJXODWLRQVZDV86$,Q :DOVK+HDO\DFWZDVUHYLVHGWRLQFOXGHVWDQGDUGVIRUQRLVHH[SRVXUHVZKLFKDUH JLYHQLQ7DEOH

,QVRPHFRXQWULHVHJLQ-DSDQ HDUSURWHFWLRQGHYLFHVDUHFRQVLGHUHGWKH PRVW HIIHFWLYH ZD\ IRU KDQGOLQJ QRLVH SROOXWLRQ 8QIRUWXQDWHO\ WKLV LV QRW D FRPSOHWHO\VDWLVIDFWRU\VROXWLRQWRQRLVHSROOXWLRQ(DUSURWHFWRUVDUHXQFRPIRUWDEOH WRZHDUDVWKHHDUVEHFRPHKRWDQGVZHDW\,WPD\FDXVHSDLQDOVR7KH\FUHDWH FRPPXQLFDWLRQSUREOHPVDQGVRPHWLPHVRQHFDQ¶WKHDUZDUQLQJVLJQDOV/DVWO\ WKH PRVW LPSRUWDQW UHDVRQ LV WKDW HDUSOXJV FDQ H[DFHUEDWH VNLQ DQG RXWHU HDU GLVHDVHVVXFKDVRWLWLV8VHRIFRUWLVSRULQGURSVRURLQWPHQWZLOOQRUPDOO\RYHUFRPH WKLVSUREOHP 7KHILUVWFRXQWU\WRLQWURGXFHLQGXVWULDOQRLVHUHJXODWLRQVZDV86$,Q :DOVK+HDO\DFWZDVUHYLVHGWRLQFOXGHVWDQGDUGVIRUQRLVHH[SRVXUHVZKLFKDUH JLYHQLQ7DEOH

7DEOH3HUPLVVLEOHQRLVHOHYHOV

7DEOH3HUPLVVLEOHQRLVHOHYHOV

/RFDWLRQ &LW\$UHD 5XUDO$UHD 5HVLGHQWLDO$UHD8UEDQ 6XEXUEDQ $UHDV 8UEDQ%XVLQHVV ,QGXVWULDO$UHDV

1RLVHOHYHOG% ± ± ± ± ± ±

/RFDWLRQ 0XVLF7KHDWUH 5DGLR796WXGLR +RVSLWDOV &RQIHUHQFH URRPV 3ULYDWH RIILFHV &RXUWURRPV %DQNDQG5HVWDXUDQWV

1RLVHOHYHOG% ± ± ± ± ± ± ±

7KHVHVWDQGDUGVFRYHUHGRQO\PLOOLRQZRUNHUVRXWRIWKHPLOOLRQQRQ JRYHUQPHQWDODQGQRQDJULFXOWXUDOZRUNIRUFH6XEVHTXHQWO\WKHVHVWDQGDUGVZHUH H[WHQGHGE\DODZWREHDSSOLFDEOHWRDOO86FRPSDQLHV

/RFDWLRQ &LW\$UHD 5XUDO$UHD 5HVLGHQWLDO$UHD8UEDQ 6XEXUEDQ $UHDV 8UEDQ%XVLQHVV ,QGXVWULDO$UHDV

1RLVHOHYHOG% ± ± ± ± ± ±

/RFDWLRQ 0XVLF7KHDWUH 5DGLR796WXGLR +RVSLWDOV &RQIHUHQFH URRPV 3ULYDWH RIILFHV &RXUWURRPV %DQNDQG5HVWDXUDQWV

1RLVHOHYHOG% ± ± ± ± ± ± ±

7KHVHVWDQGDUGVFRYHUHGRQO\PLOOLRQZRUNHUVRXWRIWKHPLOOLRQQRQ JRYHUQPHQWDODQGQRQDJULFXOWXUDOZRUNIRUFH6XEVHTXHQWO\WKHVHVWDQGDUGVZHUH H[WHQGHGE\DODZWREHDSSOLFDEOHWRDOO86FRPSDQLHV

1RLVH3ROOXWLRQ



1RLVH3ROOXWLRQ



7KH86)HGHUDO+LJKZD\$GPLQLVWUDWLRQ)+$ GHYHORSHGQRLVHFULWHULD1& IRUYDULRXVDFWLYLWLHV7KHDFFHSWDEOH1&OHYHOVIRUYDULRXVDFWLYLWLHVDUHVKRZQLQ 7DEOHDQGQRLVHVWDQGDUGVIRUKLJKZD\LQ7DEOH

7KH86)HGHUDO+LJKZD\$GPLQLVWUDWLRQ)+$ GHYHORSHGQRLVHFULWHULD1& IRUYDULRXVDFWLYLWLHV7KHDFFHSWDEOH1&OHYHOVIRUYDULRXVDFWLYLWLHVDUHVKRZQLQ 7DEOHDQGQRLVHVWDQGDUGVIRUKLJKZD\LQ7DEOH

7DEOH  $FFHSWDEOH QRLVH FULWHULD IRU YDULRXV DFWLYLWLHV

7DEOH  $FFHSWDEOH QRLVH FULWHULD IRU YDULRXV DFWLYLWLHV

$FWLYLW\

6XJJHVWHG UDQJH RI QRLVHFULWHULD1&G%

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

$FWLYLW\

6XJJHVWHG UDQJH RI QRLVHFULWHULD1&G%

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

1&WR1& 1&WR1& 1&WR1&

1&WR1& 1&WR1& 1&WR1& 1&WR1& 1&WR1&

7DEOH  (+$ QRLVH VWDQGDUGV IRU KLJKZD\V >@

7DEOH  (+$ QRLVH VWDQGDUGV IRU KLJKZD\V >@

/DQG XVH FDWHJRU\

/DQG XVH FDWHJRU\

'HVLJQ OHYHO G%$ /HT /

'HVFULSWLRQ RI ODQG XVH FDWHJRU\

'HVLJQ OHYHO G%$ /HT /

1&WR1& 1&WR1& 1&WR1&

1&WR1& 1&WR1& 1&WR1& 1&WR1& 1&WR1&

'HVFULSWLRQ RI ODQG XVH FDWHJRU\

$





7UDFWV RI ODQGV LQ ZKLFK VHUHQLW\ DQG TXLHW DUH RI H[WUDRUGLQDU\VLJQLILFDQFHDQGVHUYHDQLPSRUWDQWSXEOLF QHHG DQG ZKHUH WKH SUHVHUYDWLRQ RI WKRVH TXDOLWLHV LV HVVHQWLDOLIWKHDUHDLVWRFRQWLQXHWRVHUYHLWVLQWHQGHG SXUSRVH 6XFK DUHDV FRXOG LQFOXGH DPSKLWKHDWUHV SDUWLFXODU SDUNV RU SRUWLRQV RI SDUNV RU RSHQ VSDFHV WKDW DUH GHGLFDWHG RU UHFRJQL]HG E\ DSSURSULDWH ORFDO RIILFLDOVIRUDFWLYLWLHVUHTXLULQJVSHFLDOTXDOLWLHVRIVHUHQLW\ DQGTXLHW

$





7UDFWV RI ODQGV LQ ZKLFK VHUHQLW\ DQG TXLHW DUH RI H[WUDRUGLQDU\VLJQLILFDQFHDQGVHUYHDQLPSRUWDQWSXEOLF QHHG DQG ZKHUH WKH SUHVHUYDWLRQ RI WKRVH TXDOLWLHV LV HVVHQWLDOLIWKHDUHDLVWRFRQWLQXHWRVHUYHLWVLQWHQGHG SXUSRVH 6XFK DUHDV FRXOG LQFOXGH DPSKLWKHDWUHV SDUWLFXODU SDUNV RU SRUWLRQV RI SDUNV RU RSHQ VSDFHV WKDW DUH GHGLFDWHG RU UHFRJQL]HG E\ DSSURSULDWH ORFDO RIILFLDOVIRUDFWLYLWLHVUHTXLULQJVSHFLDOTXDOLWLHVRIVHUHQLW\ DQGTXLHW

%





5HVLGHQFHV PRWHOV KRWHOV SXEOLF PHHWLQJ URRPV VFKRROV FKXUFKHV OLEUDULHV KRVSLWDOV SLFQLF DUHDV UHFUHDWLRQDO DUHDV SOD\JURXQGV DFWLYH VSRUWV DUHDV DQG SDUNV

%





5HVLGHQFHV PRWHOV KRWHOV SXEOLF PHHWLQJ URRPV VFKRROV FKXUFKHV OLEUDULHV KRVSLWDOV SLFQLF DUHDV UHFUHDWLRQDO DUHDV SOD\JURXQGV DFWLYH VSRUWV DUHDV DQG SDUNV

&





'HYHORSHG ODQG SURSHUWLHV RU DFWLYLWLHV QRW LQFOXGHG LQ FDWHJRULHV$DQG%DERYH

&





'HYHORSHG ODQG SURSHUWLHV RU DFWLYLWLHV QRW LQFOXGHG LQ FDWHJRULHV$DQG%DERYH

'

8QOLPLWHG

8QOLPLWHG

8QGHYHORSHGODQGV

'

8QOLPLWHG

8QOLPLWHG

(





3XEOLF PHHWLQJ URRPV VFKRROV FKXUFKHV OLEUDULHV KRVSLWDOVDQGVLPLODUEXLOGLQJV

(





1RLVH3ROOXWLRQ

8QGHYHORSHGODQGV 3XEOLF PHHWLQJ URRPV VFKRROV FKXUFKHV OLEUDULHV KRVSLWDOVDQGVLPLODUEXLOGLQJV



1RLVH3ROOXWLRQ



7KH86)HGHUDO+LJKZD\$GPLQLVWUDWLRQ)+$ GHYHORSHGQRLVHFULWHULD1& IRUYDULRXVDFWLYLWLHV7KHDFFHSWDEOH1&OHYHOVIRUYDULRXVDFWLYLWLHVDUHVKRZQLQ 7DEOHDQGQRLVHVWDQGDUGVIRUKLJKZD\LQ7DEOH

7KH86)HGHUDO+LJKZD\$GPLQLVWUDWLRQ)+$ GHYHORSHGQRLVHFULWHULD1& IRUYDULRXVDFWLYLWLHV7KHDFFHSWDEOH1&OHYHOVIRUYDULRXVDFWLYLWLHVDUHVKRZQLQ 7DEOHDQGQRLVHVWDQGDUGVIRUKLJKZD\LQ7DEOH

7DEOH  $FFHSWDEOH QRLVH FULWHULD IRU YDULRXV DFWLYLWLHV

7DEOH  $FFHSWDEOH QRLVH FULWHULD IRU YDULRXV DFWLYLWLHV

$FWLYLW\

6XJJHVWHG UDQJH RI QRLVHFULWHULD1&G%

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

1&WR1& 1&WR1& 1&WR1&

1&WR1& 1&WR1& 1&WR1& 1&WR1& 1&WR1&

$FWLYLW\

6XJJHVWHG UDQJH RI QRLVHFULWHULD1&G%

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

7DEOH  (+$ QRLVH VWDQGDUGV IRU KLJKZD\V >@

7DEOH  (+$ QRLVH VWDQGDUGV IRU KLJKZD\V >@

/DQG XVH FDWHJRU\

/DQG XVH FDWHJRU\

'HVLJQ OHYHO G%$ /HT /

'HVFULSWLRQ RI ODQG XVH FDWHJRU\

'HVLJQ OHYHO G%$ /HT /

1&WR1& 1&WR1& 1&WR1&

1&WR1& 1&WR1& 1&WR1& 1&WR1& 1&WR1&

'HVFULSWLRQ RI ODQG XVH FDWHJRU\

$





7UDFWV RI ODQGV LQ ZKLFK VHUHQLW\ DQG TXLHW DUH RI H[WUDRUGLQDU\VLJQLILFDQFHDQGVHUYHDQLPSRUWDQWSXEOLF QHHG DQG ZKHUH WKH SUHVHUYDWLRQ RI WKRVH TXDOLWLHV LV HVVHQWLDOLIWKHDUHDLVWRFRQWLQXHWRVHUYHLWVLQWHQGHG SXUSRVH 6XFK DUHDV FRXOG LQFOXGH DPSKLWKHDWUHV SDUWLFXODU SDUNV RU SRUWLRQV RI SDUNV RU RSHQ VSDFHV WKDW DUH GHGLFDWHG RU UHFRJQL]HG E\ DSSURSULDWH ORFDO RIILFLDOVIRUDFWLYLWLHVUHTXLULQJVSHFLDOTXDOLWLHVRIVHUHQLW\ DQGTXLHW

$





7UDFWV RI ODQGV LQ ZKLFK VHUHQLW\ DQG TXLHW DUH RI H[WUDRUGLQDU\VLJQLILFDQFHDQGVHUYHDQLPSRUWDQWSXEOLF QHHG DQG ZKHUH WKH SUHVHUYDWLRQ RI WKRVH TXDOLWLHV LV HVVHQWLDOLIWKHDUHDLVWRFRQWLQXHWRVHUYHLWVLQWHQGHG SXUSRVH 6XFK DUHDV FRXOG LQFOXGH DPSKLWKHDWUHV SDUWLFXODU SDUNV RU SRUWLRQV RI SDUNV RU RSHQ VSDFHV WKDW DUH GHGLFDWHG RU UHFRJQL]HG E\ DSSURSULDWH ORFDO RIILFLDOVIRUDFWLYLWLHVUHTXLULQJVSHFLDOTXDOLWLHVRIVHUHQLW\ DQGTXLHW

%





5HVLGHQFHV PRWHOV KRWHOV SXEOLF PHHWLQJ URRPV VFKRROV FKXUFKHV OLEUDULHV KRVSLWDOV SLFQLF DUHDV UHFUHDWLRQDO DUHDV SOD\JURXQGV DFWLYH VSRUWV DUHDV DQG SDUNV

%





5HVLGHQFHV PRWHOV KRWHOV SXEOLF PHHWLQJ URRPV VFKRROV FKXUFKHV OLEUDULHV KRVSLWDOV SLFQLF DUHDV UHFUHDWLRQDO DUHDV SOD\JURXQGV DFWLYH VSRUWV DUHDV DQG SDUNV

&





'HYHORSHG ODQG SURSHUWLHV RU DFWLYLWLHV QRW LQFOXGHG LQ FDWHJRULHV$DQG%DERYH

&





'HYHORSHG ODQG SURSHUWLHV RU DFWLYLWLHV QRW LQFOXGHG LQ FDWHJRULHV$DQG%DERYH

'

8QOLPLWHG

8QOLPLWHG

8QGHYHORSHGODQGV

'

8QOLPLWHG

8QOLPLWHG

(





3XEOLF PHHWLQJ URRPV VFKRROV FKXUFKHV OLEUDULHV KRVSLWDOVDQGVLPLODUEXLOGLQJV

(





8QGHYHORSHGODQGV 3XEOLF PHHWLQJ URRPV VFKRROV FKXUFKHV OLEUDULHV KRVSLWDOVDQGVLPLODUEXLOGLQJV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

48(67,216

48(67,216

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³7KH(IIHFWRI1RLVHRQ0DQ´$FDGHPLF3UHVV1HZ@ 3K\VLFRFKHPLFDOFKDUDFWHULVWLFVVRXUFHVDQGHIIHFWVRISULPDU\DLUSROOXWDQWV ZLOOEHGLVFXVVHGLQWKHIROORZLQJVHFWLRQV

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



7DEOH&RPPRQDLUSROOXWDQWV

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



7DEOH&RPPRQDLUSROOXWDQWV

3ROOXWDQW

6RXUFH

3K\VLRORJLFDOHIIHFWVRQPDQ

3ROOXWDQW

6RXUFH

3K\VLRORJLFDOHIIHFWVRQPDQ

6XOSKXUGLR[LGH

&RORXUOHVV JDV SURGXFHG E\ FRDODQGRLOFRPEXVWLRQDQG FHUWDLQ LQGXVWULDO VRXUFHV

5HVSLUDWRU\ LUULWDQW DJJUDYDWHV DVWKPD DQGRWKHUOXQJDQGKHDUWGLVHDVHV UHGXFHV OXQJ IXQFWLRQ

6XOSKXUGLR[LGH

&RORXUOHVV JDV SURGXFHG E\ FRDODQGRLOFRPEXVWLRQDQG FHUWDLQ LQGXVWULDO VRXUFHV

5HVSLUDWRU\ LUULWDQW DJJUDYDWHV DVWKPD DQGRWKHUOXQJDQGKHDUWGLVHDVHV UHGXFHV OXQJ IXQFWLRQ

1LWURJHQR[LGHV

%URZQLVK RUDQJH JDV SURGXFHG ,QKLELWVFLOLDDFWLRQVRWKDWVRRW E\PRWRUYHKLFOHVDQG DQGGXVWSHQHWUDWHIDULQWRWKHOXQJV FRPEXVWLRQDWPDMRULQGXVWULDO VRXUFH

1LWURJHQR[LGHV

%URZQLVK RUDQJH JDV SURGXFHG ,QKLELWVFLOLDDFWLRQVRWKDWVRRW E\PRWRUYHKLFOHVDQG DQGGXVWSHQHWUDWHIDULQWRWKHOXQJV FRPEXVWLRQDWPDMRULQGXVWULDO VRXUFH

+\GURJHQVXOSKLGH

5HILQHULHV FKHPLFDO LQGXVWULHV DQGELWXPLQRXVIXHOV

&DXVHV QDXVHD LUULWDWHV H\HV DQG WKURDW

+\GURJHQVXOSKLGH

5HILQHULHV FKHPLFDO LQGXVWULHV DQGELWXPLQRXVIXHOV

&DXVHV QDXVHD LUULWDWHV H\HV DQG WKURDW

&DUERQPRQR[LGH

%XUQLQJRIFRDOJDVROLQH PRWRU H[KDXVWV

5HGXFHV R[\JHQ FDUU\LQJ FDSDFLW\ RI EORRG

&DUERQPRQR[LGH

%XUQLQJRIFRDOJDVROLQH PRWRU H[KDXVWV

5HGXFHV R[\JHQ FDUU\LQJ FDSDFLW\ RI EORRG

+\GURJHQ F\DQLGH

%ODVW IXUQDFH IXPLJDWLRQ FKHPLFDOPDQXIDFWXULQJPHWDO SODWLQJHWF

,QWHUIHUHV ZLWK QHUYH FHOOV SURGXFHV GU\ WKURDW LQGLVWLQFW YLVLRQ KHDGDFKH HWF

+\GURJHQ F\DQLGH

%ODVW IXUQDFH IXPLJDWLRQ FKHPLFDOPDQXIDFWXULQJPHWDO SODWLQJHWF

,QWHUIHUHV ZLWK QHUYH FHOOV SURGXFHV GU\ WKURDW LQGLVWLQFW YLVLRQ KHDGDFKH HWF

$PPRQLD

([SORVLYHVG\HPDNLQJ IHUWLOL]HU SODQWV DQG ODFTXHUV

,QIODPHV XSSHU UHVSLUDWRU\ SDVVDJHV

$PPRQLD

([SORVLYHVG\HPDNLQJ IHUWLOL]HU SODQWV DQG ODFTXHUV

,QIODPHV XSSHU UHVSLUDWRU\ SDVVDJHV

3KRVJHQHRU FDUERQ\O FKORULGH

&KHPLFDODQGG\HPDNLQJ

,QGXFHVFRXJKLQJLUULWDWLRQ DQGIDWDOSXOPRQDU\RHGHPD

3KRVJHQHRU FDUERQ\O FKORULGH

&KHPLFDODQGG\HPDNLQJ

,QGXFHVFRXJKLQJLUULWDWLRQ DQGIDWDOSXOPRQDU\RHGHPD

$OGHK\GHV

7KHUPDOGHFRPSRVLWLRQRIRLOV IDWV RU JO\FHUROV

,UULWDWH QDVDO DQG UHVSLUDWRU\ WUDFWV

$OGHK\GHV

7KHUPDOGHFRPSRVLWLRQRIRLOV IDWV RU JO\FHUROV

,UULWDWH QDVDO DQG UHVSLUDWRU\ WUDFWV

$UVLQHV

3URFHVVHVLQYROYLQJPHWDORU DFLGV FRQWDLQLQJ DUVHQLF VROGHULQJ

'DPDJHUHGFHOOVLQEORRGNLGQH\VDQG FDXVH MDXQGLFH

$UVLQHV

3URFHVVHVLQYROYLQJPHWDORU DFLGV FRQWDLQLQJ DUVHQLF VROGHULQJ

'DPDJHUHGFHOOVLQEORRGNLGQH\VDQG FDXVH MDXQGLFH

6XVSHQGHG SDUWLFOHV 6ROLGRUOLTXLGSDUWLFOHV DVKVRRWVPRNH SURGXFHGE\FRPEXVWLRQDQG HWF RWKHU SURFHVVHV DW PDMRU LQGXVWULDO VRXUFHV HJ VWHHO PLOOVSRZHUSODQWVFKHPLFDO SODQWVLQFLQHUDWRUVDQGDOPRVW HYHU\ PDQXIDFWXULQJ SURFHVV 

5HVSLUDWRU\ LUULWDQWV DJJUDYDWH DVWKPD DQGRWKHUOXQJDQGKHDUWGLVHDVHV HVSHFLDOO\LQFRPELQDWLRQZLWKVXOSKXU GLR[LGH  7R[LF JDVHV DQG KHDY\ PHWDOVDEVRUERQWRWKHVHRQWRWKHVH SDUWLFXODWHVDQGDUHFRPPRQO\FDUULHG GHHSLQWRWKHOXQJV&DXVHHPSK\VHPD H\H LUULWDWLRQ DQG SRVVLEO\ FDQFHU

6XVSHQGHG SDUWLFOHV 6ROLGRUOLTXLGSDUWLFOHV DVKVRRWVPRNH SURGXFHGE\FRPEXVWLRQDQG HWF RWKHU SURFHVVHV DW PDMRU LQGXVWULDO VRXUFHV HJ VWHHO PLOOVSRZHUSODQWVFKHPLFDO SODQWVLQFLQHUDWRUVDQGDOPRVW HYHU\ PDQXIDFWXULQJ SURFHVV 

5HVSLUDWRU\ LUULWDQWV DJJUDYDWH DVWKPD DQGRWKHUOXQJDQGKHDUWGLVHDVHV HVSHFLDOO\LQFRPELQDWLRQZLWKVXOSKXU GLR[LGH  7R[LF JDVHV DQG KHDY\ PHWDOVDEVRUERQWRWKHVHRQWRWKHVH SDUWLFXODWHVDQGDUHFRPPRQO\FDUULHG GHHSLQWRWKHOXQJV&DXVHHPSK\VHPD H\H LUULWDWLRQ DQG SRVVLEO\ FDQFHU

/HDG

9HU\VPDOOSDUWLFOHVHPLWWHG IURPPRWRUYHKLFOHVDQG VPHOWHUV

7R[LFWRQHUYRXVDQGEORRGIRUPLQJ V\VWHPV LQ KLJK FRQFHQWUDWLRQV FDQ FDXVHEUDLQDQGRUJDQGDPDJH

/HDG

9HU\VPDOOSDUWLFOHVHPLWWHG IURPPRWRUYHKLFOHVDQG VPHOWHUV

7R[LFWRQHUYRXVDQGEORRGIRUPLQJ V\VWHPV LQ KLJK FRQFHQWUDWLRQV FDQ FDXVHEUDLQDQGRUJDQGDPDJH

2]RQH

$ FRORXUOHVV JDV IRUPHG IURP UHDFWLRQV EHWZHHQ PRWRU YHKLFOHHPLVVLRQVDQGVXQOLJKW ,WLVWKHPDMRUFRPSRQHQWRI VPRJ

5HVSLUDWRU\ LUULWDQW DJJUDYDWHV DVWKPDDQGRWKHUOXQJDQGKHDUW GLVHDVHV LPSDLUV OXQJ IXQFWLRQV 2]RQHLVWR[LFWRSODQWVDQGFRUURGHV PDWHULDOV

2]RQH

$ FRORXUOHVV JDV IRUPHG IURP UHDFWLRQV EHWZHHQ PRWRU YHKLFOHHPLVVLRQVDQGVXQOLJKW ,WLVWKHPDMRUFRPSRQHQWRI VPRJ

5HVSLUDWRU\ LUULWDQW DJJUDYDWHV DVWKPDDQGRWKHUOXQJDQGKHDUW GLVHDVHV LPSDLUV OXQJ IXQFWLRQV 2]RQHLVWR[LFWRSODQWVDQGFRUURGHV PDWHULDOV

 3$57,&8/$7(6

 3$57,&8/$7(6

6PDOODLUERUQHVROLGSDUWLFOHVDQGOLTXLGGURSOHWVDUHNQRZQDVSDUWLFXODWHV7KH VXVSHQVLRQRISDUWLFXODWHVLQWKHDWPRVSKHUHYDULHVIURPDIHZVHFRQGVWRVHYHUDO PRQWKVGHSHQGLQJRQWKHVL]HGHQVLW\VHWWOLQJYHORFLW\DQGDWPRVSKHULFWXUEXOHQFH

6PDOODLUERUQHVROLGSDUWLFOHVDQGOLTXLGGURSOHWVDUHNQRZQDVSDUWLFXODWHV7KH VXVSHQVLRQRISDUWLFXODWHVLQWKHDWPRVSKHUHYDULHVIURPDIHZVHFRQGVWRVHYHUDO PRQWKVGHSHQGLQJRQWKHVL]HGHQVLW\VHWWOLQJYHORFLW\DQGDWPRVSKHULFWXUEXOHQFH

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



7DEOH&RPPRQDLUSROOXWDQWV

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



7DEOH&RPPRQDLUSROOXWDQWV

3ROOXWDQW

6RXUFH

3K\VLRORJLFDOHIIHFWVRQPDQ

3ROOXWDQW

6RXUFH

3K\VLRORJLFDOHIIHFWVRQPDQ

6XOSKXUGLR[LGH

&RORXUOHVV JDV SURGXFHG E\ FRDODQGRLOFRPEXVWLRQDQG FHUWDLQ LQGXVWULDO VRXUFHV

5HVSLUDWRU\ LUULWDQW DJJUDYDWHV DVWKPD DQGRWKHUOXQJDQGKHDUWGLVHDVHV UHGXFHV OXQJ IXQFWLRQ

6XOSKXUGLR[LGH

&RORXUOHVV JDV SURGXFHG E\ FRDODQGRLOFRPEXVWLRQDQG FHUWDLQ LQGXVWULDO VRXUFHV

5HVSLUDWRU\ LUULWDQW DJJUDYDWHV DVWKPD DQGRWKHUOXQJDQGKHDUWGLVHDVHV UHGXFHV OXQJ IXQFWLRQ

1LWURJHQR[LGHV

%URZQLVK RUDQJH JDV SURGXFHG ,QKLELWVFLOLDDFWLRQVRWKDWVRRW E\PRWRUYHKLFOHVDQG DQGGXVWSHQHWUDWHIDULQWRWKHOXQJV FRPEXVWLRQDWPDMRULQGXVWULDO VRXUFH

1LWURJHQR[LGHV

%URZQLVK RUDQJH JDV SURGXFHG ,QKLELWVFLOLDDFWLRQVRWKDWVRRW E\PRWRUYHKLFOHVDQG DQGGXVWSHQHWUDWHIDULQWRWKHOXQJV FRPEXVWLRQDWPDMRULQGXVWULDO VRXUFH

+\GURJHQVXOSKLGH

5HILQHULHV FKHPLFDO LQGXVWULHV DQGELWXPLQRXVIXHOV

&DXVHV QDXVHD LUULWDWHV H\HV DQG WKURDW

+\GURJHQVXOSKLGH

5HILQHULHV FKHPLFDO LQGXVWULHV DQGELWXPLQRXVIXHOV

&DXVHV QDXVHD LUULWDWHV H\HV DQG WKURDW

&DUERQPRQR[LGH

%XUQLQJRIFRDOJDVROLQH PRWRU H[KDXVWV

5HGXFHV R[\JHQ FDUU\LQJ FDSDFLW\ RI EORRG

&DUERQPRQR[LGH

%XUQLQJRIFRDOJDVROLQH PRWRU H[KDXVWV

5HGXFHV R[\JHQ FDUU\LQJ FDSDFLW\ RI EORRG

+\GURJHQ F\DQLGH

%ODVW IXUQDFH IXPLJDWLRQ FKHPLFDOPDQXIDFWXULQJPHWDO SODWLQJHWF

,QWHUIHUHV ZLWK QHUYH FHOOV SURGXFHV GU\ WKURDW LQGLVWLQFW YLVLRQ KHDGDFKH HWF

+\GURJHQ F\DQLGH

%ODVW IXUQDFH IXPLJDWLRQ FKHPLFDOPDQXIDFWXULQJPHWDO SODWLQJHWF

,QWHUIHUHV ZLWK QHUYH FHOOV SURGXFHV GU\ WKURDW LQGLVWLQFW YLVLRQ KHDGDFKH HWF

$PPRQLD

([SORVLYHVG\HPDNLQJ IHUWLOL]HU SODQWV DQG ODFTXHUV

,QIODPHV XSSHU UHVSLUDWRU\ SDVVDJHV

$PPRQLD

([SORVLYHVG\HPDNLQJ IHUWLOL]HU SODQWV DQG ODFTXHUV

,QIODPHV XSSHU UHVSLUDWRU\ SDVVDJHV

3KRVJHQHRU FDUERQ\O FKORULGH

&KHPLFDODQGG\HPDNLQJ

,QGXFHVFRXJKLQJLUULWDWLRQ DQGIDWDOSXOPRQDU\RHGHPD

3KRVJHQHRU FDUERQ\O FKORULGH

&KHPLFDODQGG\HPDNLQJ

,QGXFHVFRXJKLQJLUULWDWLRQ DQGIDWDOSXOPRQDU\RHGHPD

$OGHK\GHV

7KHUPDOGHFRPSRVLWLRQRIRLOV IDWV RU JO\FHUROV

,UULWDWH QDVDO DQG UHVSLUDWRU\ WUDFWV

$OGHK\GHV

7KHUPDOGHFRPSRVLWLRQRIRLOV IDWV RU JO\FHUROV

,UULWDWH QDVDO DQG UHVSLUDWRU\ WUDFWV

$UVLQHV

3URFHVVHVLQYROYLQJPHWDORU DFLGV FRQWDLQLQJ DUVHQLF VROGHULQJ

'DPDJHUHGFHOOVLQEORRGNLGQH\VDQG FDXVH MDXQGLFH

$UVLQHV

3URFHVVHVLQYROYLQJPHWDORU DFLGV FRQWDLQLQJ DUVHQLF VROGHULQJ

'DPDJHUHGFHOOVLQEORRGNLGQH\VDQG FDXVH MDXQGLFH

6XVSHQGHG SDUWLFOHV 6ROLGRUOLTXLGSDUWLFOHV DVKVRRWVPRNH SURGXFHGE\FRPEXVWLRQDQG HWF RWKHU SURFHVVHV DW PDMRU LQGXVWULDO VRXUFHV HJ VWHHO PLOOVSRZHUSODQWVFKHPLFDO SODQWVLQFLQHUDWRUVDQGDOPRVW HYHU\ PDQXIDFWXULQJ SURFHVV 

5HVSLUDWRU\ LUULWDQWV DJJUDYDWH DVWKPD DQGRWKHUOXQJDQGKHDUWGLVHDVHV HVSHFLDOO\LQFRPELQDWLRQZLWKVXOSKXU GLR[LGH  7R[LF JDVHV DQG KHDY\ PHWDOVDEVRUERQWRWKHVHRQWRWKHVH SDUWLFXODWHVDQGDUHFRPPRQO\FDUULHG GHHSLQWRWKHOXQJV&DXVHHPSK\VHPD H\H LUULWDWLRQ DQG SRVVLEO\ FDQFHU

6XVSHQGHG SDUWLFOHV 6ROLGRUOLTXLGSDUWLFOHV DVKVRRWVPRNH SURGXFHGE\FRPEXVWLRQDQG HWF RWKHU SURFHVVHV DW PDMRU LQGXVWULDO VRXUFHV HJ VWHHO PLOOVSRZHUSODQWVFKHPLFDO SODQWVLQFLQHUDWRUVDQGDOPRVW HYHU\ PDQXIDFWXULQJ SURFHVV 

5HVSLUDWRU\ LUULWDQWV DJJUDYDWH DVWKPD DQGRWKHUOXQJDQGKHDUWGLVHDVHV HVSHFLDOO\LQFRPELQDWLRQZLWKVXOSKXU GLR[LGH  7R[LF JDVHV DQG KHDY\ PHWDOVDEVRUERQWRWKHVHRQWRWKHVH SDUWLFXODWHVDQGDUHFRPPRQO\FDUULHG GHHSLQWRWKHOXQJV&DXVHHPSK\VHPD H\H LUULWDWLRQ DQG SRVVLEO\ FDQFHU

/HDG

9HU\VPDOOSDUWLFOHVHPLWWHG IURPPRWRUYHKLFOHVDQG VPHOWHUV

7R[LFWRQHUYRXVDQGEORRGIRUPLQJ V\VWHPV LQ KLJK FRQFHQWUDWLRQV FDQ FDXVHEUDLQDQGRUJDQGDPDJH

/HDG

9HU\VPDOOSDUWLFOHVHPLWWHG IURPPRWRUYHKLFOHVDQG VPHOWHUV

7R[LFWRQHUYRXVDQGEORRGIRUPLQJ V\VWHPV LQ KLJK FRQFHQWUDWLRQV FDQ FDXVHEUDLQDQGRUJDQGDPDJH

2]RQH

$ FRORXUOHVV JDV IRUPHG IURP UHDFWLRQV EHWZHHQ PRWRU YHKLFOHHPLVVLRQVDQGVXQOLJKW ,WLVWKHPDMRUFRPSRQHQWRI VPRJ

5HVSLUDWRU\ LUULWDQW DJJUDYDWHV DVWKPDDQGRWKHUOXQJDQGKHDUW GLVHDVHV LPSDLUV OXQJ IXQFWLRQV 2]RQHLVWR[LFWRSODQWVDQGFRUURGHV PDWHULDOV

2]RQH

$ FRORXUOHVV JDV IRUPHG IURP UHDFWLRQV EHWZHHQ PRWRU YHKLFOHHPLVVLRQVDQGVXQOLJKW ,WLVWKHPDMRUFRPSRQHQWRI VPRJ

5HVSLUDWRU\ LUULWDQW DJJUDYDWHV DVWKPDDQGRWKHUOXQJDQGKHDUW GLVHDVHV LPSDLUV OXQJ IXQFWLRQV 2]RQHLVWR[LFWRSODQWVDQGFRUURGHV PDWHULDOV

 3$57,&8/$7(6

 3$57,&8/$7(6

6PDOODLUERUQHVROLGSDUWLFOHVDQGOLTXLGGURSOHWVDUHNQRZQDVSDUWLFXODWHV7KH VXVSHQVLRQRISDUWLFXODWHVLQWKHDWPRVSKHUHYDULHVIURPDIHZVHFRQGVWRVHYHUDO PRQWKVGHSHQGLQJRQWKHVL]HGHQVLW\VHWWOLQJYHORFLW\DQGDWPRVSKHULFWXUEXOHQFH

6PDOODLUERUQHVROLGSDUWLFOHVDQGOLTXLGGURSOHWVDUHNQRZQDVSDUWLFXODWHV7KH VXVSHQVLRQRISDUWLFXODWHVLQWKHDWPRVSKHUHYDULHVIURPDIHZVHFRQGVWRVHYHUDO PRQWKVGHSHQGLQJRQWKHVL]HGHQVLW\VHWWOLQJYHORFLW\DQGDWPRVSKHULFWXUEXOHQFH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH5HODWLYHWR[LFLW\RISROOXWDQWV

7DEOH5HODWLYHWR[LFLW\RISROOXWDQWV

3ROOXWDQW

&2 +\GURFDUERQV 62[ 12[ 3DUWLFXODWHV

5HODWLYHWR[LFLW\ ZHLJKWLQJ IDFWRU     

7ROHUDQFH OHYHOV

3ROOXWDQW

—JP

SSP  9DULDEOH   9DULDEOH

    

&2 +\GURFDUERQV 62[ 12[ 3DUWLFXODWHV

5HODWLYHWR[LFLW\ ZHLJKWLQJ IDFWRU     

7ROHUDQFH OHYHOV —JP

SSP  9DULDEOH   9DULDEOH

    

3DUWLFXODWHV FDQ EH LQHUW RU H[WUHPHO\ UHDFWLYH DQG WKHLU VL]H UDQJH YDULHV IURP ±PP3DUWLFXODWHVRI!PPGLDPHWHUDUHFODVVLILHGDVGXVW 3DUWLFXODWHVL]HVLQXUEDQDLUYDU\IURPWRPP3DUWLFOHVVPDOOHUWKDQ PPXQGHUJRUDQGRP%URZQLDQPRWLRQDQGGRQRWVHWWOHHDVLO\6XFKSDUWLFXODWHV FDXVHPD[LPXPGDPDJHWRKHDOWK,QJHQHUDOSDUWLFOHVXSWR—PDUHDGVRUEHG RQWKHPXFXVRIWKHWUDFKHDOEURQFKLDOV\VWHPZKLFKDUHGLVFDUGHGE\VSLWWLQJRU VZDOORZLQJ3DUWLFOHVRI±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

3DUWLFXODWHV FDQ EH LQHUW RU H[WUHPHO\ UHDFWLYH DQG WKHLU VL]H UDQJH YDULHV IURP ±PP3DUWLFXODWHVRI!PPGLDPHWHUDUHFODVVLILHGDVGXVW 3DUWLFXODWHVL]HVLQXUEDQDLUYDU\IURPWRPP3DUWLFOHVVPDOOHUWKDQ PPXQGHUJRUDQGRP%URZQLDQPRWLRQDQGGRQRWVHWWOHHDVLO\6XFKSDUWLFXODWHV FDXVHPD[LPXPGDPDJHWRKHDOWK,QJHQHUDOSDUWLFOHVXSWR—PDUHDGVRUEHG RQWKHPXFXVRIWKHWUDFKHDOEURQFKLDOV\VWHPZKLFKDUHGLVFDUGHGE\VSLWWLQJRU VZDOORZLQJ3DUWLFOHVRI±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

7DEOH3DUWLFXODWHFRPSRVLWLRQRI+\GHUDEDGFLW\

7DEOH3DUWLFXODWHFRPSRVLWLRQRI+\GHUDEDGFLW\

3DUWLFXODWHV

&RPSRVLWLRQ—JP

1LWUDWHLRQV



$PPRQLXPLRQV 6XOSKDWHLRQV /HDG

&RPSRVLWLRQ—JP

3DUWLFXODWHV

&RPSRVLWLRQ—JP

=LQF



1LWUDWHLRQV



=LQF





$QWLPRQ\



$PPRQLXPLRQV



$QWLPRQ\





2UJDQLF VROYHQWV



6XOSKDWHLRQV



2UJDQLF VROYHQWV



$UVHQLF



/HDG

$UVHQLF





3DUWLFXODWHV



3DUWLFXODWHV

&RPSRVLWLRQ—JP

,URQ



0RO\EGHQXP



,URQ



0RO\EGHQXP



0DQJDQHVH



%HU\OOLXP



0DQJDQHVH



%HU\OOLXP



1LFNHO



%LVPXWK



1LFNHO



%LVPXWK



7LQ



&REDOW



7LQ



&REDOW



7LWDQLXP



6RGLXP



7LWDQLXP



6RGLXP



&RSSHU



6LOLFRQ



&RSSHU



6LOLFRQ



&KURPLXP



&DOFLXP



&KURPLXP



&DOFLXP



9DQDGLXP



9DQDGLXP



 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH5HODWLYHWR[LFLW\RISROOXWDQWV

7DEOH5HODWLYHWR[LFLW\RISROOXWDQWV

3ROOXWDQW

&2 +\GURFDUERQV 62[ 12[ 3DUWLFXODWHV

5HODWLYHWR[LFLW\ ZHLJKWLQJ IDFWRU     

7ROHUDQFH OHYHOV SSP  9DULDEOH   9DULDEOH

3ROOXWDQW

—JP     

&2 +\GURFDUERQV 62[ 12[ 3DUWLFXODWHV

5HODWLYHWR[LFLW\ ZHLJKWLQJ IDFWRU     

7ROHUDQFH OHYHOV SSP  9DULDEOH   9DULDEOH

—JP     

3DUWLFXODWHV FDQ EH LQHUW RU H[WUHPHO\ UHDFWLYH DQG WKHLU VL]H UDQJH YDULHV IURP ±PP3DUWLFXODWHVRI!PPGLDPHWHUDUHFODVVLILHGDVGXVW 3DUWLFXODWHVL]HVLQXUEDQDLUYDU\IURPWRPP3DUWLFOHVVPDOOHUWKDQ PPXQGHUJRUDQGRP%URZQLDQPRWLRQDQGGRQRWVHWWOHHDVLO\6XFKSDUWLFXODWHV FDXVHPD[LPXPGDPDJHWRKHDOWK,QJHQHUDOSDUWLFOHVXSWR—PDUHDGVRUEHG RQWKHPXFXVRIWKHWUDFKHDOEURQFKLDOV\VWHPZKLFKDUHGLVFDUGHGE\VSLWWLQJRU VZDOORZLQJ3DUWLFOHVRI±PPFDQHQWHUWKHOXQJVDQGGHSRVLWHGWKHUH2QFH DGVRUEHGWKHVHSDUWLFOHVVORZO\UHOHDVHWKHWR[LFJDVHVPHWDOLRQVDQGRUJDQLF FRPSRXQGE\LQWHUDFWLRQZLWKWKHERG\IOXLGV,QWKLVZD\FDOFLXPDOXPLQLXP VLOLFRQFRPSRXQGVRIKHDY\PHWDOVVXFKDVFDGPLXPSDUWLFOHVSURGXFHGIURP FRDORLOZRRGEXUQLQJRIVROLGZRRGHWFILQGWKHLUZD\LQWROXQJV6PRNHUV OXQJV DUH DIIHFWHG LQ WKLV PDQQHU +\GURFDUERQV FRDOHVFH LQWR DHURVRO GURSOHWV FDUU\LQJ SRO\F\FOLF RUJDQLF PDWWHU VXFK EHQ]DS\UHQH 3$+ HWF ZKLFK DUH FDUFLQRJHQLF )DUPHUV DQG FKHPLFDO ZRUNHUV DUH DOVR H[SRVHG WR SHVWLFLGHV LQVHFWLFLGHVGXVWVHWF7KHFKHPLFDOFRPSRVLWLRQRISDUWLFXODWHPDWWHUFROOHFWHG GXULQJLQDQ,QGLDQPHWURSROLWDQFLW\LVSUHVHQWHGLQ7DEOH

3DUWLFXODWHV FDQ EH LQHUW RU H[WUHPHO\ UHDFWLYH DQG WKHLU VL]H UDQJH YDULHV IURP ±PP3DUWLFXODWHVRI!PPGLDPHWHUDUHFODVVLILHGDVGXVW 3DUWLFXODWHVL]HVLQXUEDQDLUYDU\IURPWRPP3DUWLFOHVVPDOOHUWKDQ PPXQGHUJRUDQGRP%URZQLDQPRWLRQDQGGRQRWVHWWOHHDVLO\6XFKSDUWLFXODWHV FDXVHPD[LPXPGDPDJHWRKHDOWK,QJHQHUDOSDUWLFOHVXSWR—PDUHDGVRUEHG RQWKHPXFXVRIWKHWUDFKHDOEURQFKLDOV\VWHPZKLFKDUHGLVFDUGHGE\VSLWWLQJRU VZDOORZLQJ3DUWLFOHVRI±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

7DEOH3DUWLFXODWHFRPSRVLWLRQRI+\GHUDEDGFLW\

7DEOH3DUWLFXODWHFRPSRVLWLRQRI+\GHUDEDGFLW\

3DUWLFXODWHV

&RPSRVLWLRQ—JP

3DUWLFXODWHV

&RPSRVLWLRQ—JP

3DUWLFXODWHV

&RPSRVLWLRQ—JP

3DUWLFXODWHV

&RPSRVLWLRQ—JP

1LWUDWHLRQV



=LQF



1LWUDWHLRQV



=LQF



$PPRQLXPLRQV



$QWLPRQ\



$PPRQLXPLRQV



$QWLPRQ\



6XOSKDWHLRQV /HDG

 

2UJDQLF VROYHQWV



6XOSKDWHLRQV

$UVHQLF



/HDG

 

2UJDQLF VROYHQWV



$UVHQLF



,URQ



0RO\EGHQXP



,URQ



0RO\EGHQXP



0DQJDQHVH



%HU\OOLXP



0DQJDQHVH



%HU\OOLXP



1LFNHO



%LVPXWK



1LFNHO



%LVPXWK



7LQ



&REDOW



7LQ



&REDOW



7LWDQLXP



6RGLXP



7LWDQLXP



6RGLXP



&RSSHU



6LOLFRQ



&RSSHU



6LOLFRQ



&KURPLXP



&DOFLXP



&KURPLXP



&DOFLXP



9DQDGLXP



9DQDGLXP



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



(IIHFWRI3DUWLFXODWHVRQ+XPDQ+HDOWK

(IIHFWRI3DUWLFXODWHVRQ+XPDQ+HDOWK

$VPHQWLRQHGHDUOLHUDLUERUQHSDUWLFXODWHVRI±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

$VPHQWLRQHGHDUOLHUDLUERUQHSDUWLFXODWHVRI±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

7DEOH D  &ODVVLILFDWLRQ RI SDUWLFXODWHV

7DEOH D  &ODVVLILFDWLRQ RI SDUWLFXODWHV

6L]H—P

&ODVVLILFDWLRQ

6L]H—P

²

'XVWV

²

'XVWV

±

6PRNH

±

6PRNH

±

)XPHV

±

)XPHV

OLTXLG

0LVWV

OLTXLG

0LVWV

—DLUERUQH

$HURVROV

—DLUERUQH

$HURVROV

—P

5LVWULFWHGHQWU\LQWRWKHQRVH

—P

5LVWULFWHGHQWU\LQWRWKHQRVH

—P

&DQVHWWOHLQWRWKHOXQJV

—P

&DQVHWWOHLQWRWKHOXQJV

7DEOH E  7\SLFDO SDUWLFOH VL]HV RI SROOXWDQWV 7\SH

&ODVVLILFDWLRQ

7DEOH E  7\SLFDO SDUWLFOH VL]HV RI SROOXWDQWV 3DUWLFOHVL]HUDQJH—P

9LUXV &ORXGFRQGHQVDWLRQ 1XFOHL =LQF R[LGH &DUERQEODFN 3DLQWSLJPHQWV 6SUD\GULHGPLON 7REDFFRVPRNH ,QVHFWLFLGHV GXVW 0LOOHGIORRU 3XOYHUL]HGFRDO 5HGEORRGFHOOV %HDFK VDQG

7\SH

± ± ± ± ± ± ± ± ± ± ± ± ±

3DUWLFOHVL]HUDQJH—P

9LUXV &ORXGFRQGHQVDWLRQ 1XFOHL =LQF R[LGH &DUERQEODFN 3DLQWSLJPHQWV 6SUD\GULHGPLON 7REDFFRVPRNH ,QVHFWLFLGHV GXVW 0LOOHGIORRU 3XOYHUL]HGFRDO 5HGEORRGFHOOV %HDFK VDQG

± ± ± ± ± ± ± ± ± ± ± ± ±

(IIHFWRQ3ODQWV

(IIHFWRQ3ODQWV

'HSRVLWLRQRISDUWLFXODWHVRQOHDYHVIRUPVDWKLFNFUXVWRQWKHVXUIDFH7KHFUXVW EORFNVWKHVXQOLJKWDQGDGYHUVHO\DIIHFWVFDUERQDVVLPLODWLRQ7R[LFWUDFHPHWDOV DUHNQRZQWRLQKLELWWKHSODQWHQ]\PHV\VWHP)RUH[DPSOHDUVHQLFLVNQRZQDVD

'HSRVLWLRQRISDUWLFXODWHVRQOHDYHVIRUPVDWKLFNFUXVWRQWKHVXUIDFH7KHFUXVW EORFNVWKHVXQOLJKWDQGDGYHUVHO\DIIHFWVFDUERQDVVLPLODWLRQ7R[LFWUDFHPHWDOV DUHNQRZQWRLQKLELWWKHSODQWHQ]\PHV\VWHP)RUH[DPSOHDUVHQLFLVNQRZQDVD

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



(IIHFWRI3DUWLFXODWHVRQ+XPDQ+HDOWK

(IIHFWRI3DUWLFXODWHVRQ+XPDQ+HDOWK

$VPHQWLRQHGHDUOLHUDLUERUQHSDUWLFXODWHVRI±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

$VPHQWLRQHGHDUOLHUDLUERUQHSDUWLFXODWHVRI±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

7DEOH D  &ODVVLILFDWLRQ RI SDUWLFXODWHV

7DEOH D  &ODVVLILFDWLRQ RI SDUWLFXODWHV

6L]H—P

&ODVVLILFDWLRQ

6L]H—P

²

'XVWV

²

'XVWV

±

6PRNH

±

6PRNH

±

)XPHV

±

)XPHV

OLTXLG

0LVWV

OLTXLG

0LVWV

—DLUERUQH

$HURVROV

—DLUERUQH

$HURVROV

—P

5LVWULFWHGHQWU\LQWRWKHQRVH

—P

5LVWULFWHGHQWU\LQWRWKHQRVH

—P

&DQVHWWOHLQWRWKHOXQJV

—P

&DQVHWWOHLQWRWKHOXQJV

7DEOH E  7\SLFDO SDUWLFOH VL]HV RI SROOXWDQWV 7\SH 9LUXV &ORXGFRQGHQVDWLRQ 1XFOHL =LQF R[LGH &DUERQEODFN 3DLQWSLJPHQWV 6SUD\GULHGPLON 7REDFFRVPRNH ,QVHFWLFLGHV GXVW 0LOOHGIORRU 3XOYHUL]HGFRDO 5HGEORRGFHOOV %HDFK VDQG

&ODVVLILFDWLRQ

7DEOH E  7\SLFDO SDUWLFOH VL]HV RI SROOXWDQWV 3DUWLFOHVL]HUDQJH—P ± ± ± ± ± ± ± ± ± ± ± ± ±

7\SH 9LUXV &ORXGFRQGHQVDWLRQ 1XFOHL =LQF R[LGH &DUERQEODFN 3DLQWSLJPHQWV 6SUD\GULHGPLON 7REDFFRVPRNH ,QVHFWLFLGHV GXVW 0LOOHGIORRU 3XOYHUL]HGFRDO 5HGEORRGFHOOV %HDFK VDQG

3DUWLFOHVL]HUDQJH—P ± ± ± ± ± ± ± ± ± ± ± ± ±

(IIHFWRQ3ODQWV

(IIHFWRQ3ODQWV

'HSRVLWLRQRISDUWLFXODWHVRQOHDYHVIRUPVDWKLFNFUXVWRQWKHVXUIDFH7KHFUXVW EORFNVWKHVXQOLJKWDQGDGYHUVHO\DIIHFWVFDUERQDVVLPLODWLRQ7R[LFWUDFHPHWDOV DUHNQRZQWRLQKLELWWKHSODQWHQ]\PHV\VWHP)RUH[DPSOHDUVHQLFLVNQRZQDVD

'HSRVLWLRQRISDUWLFXODWHVRQOHDYHVIRUPVDWKLFNFUXVWRQWKHVXUIDFH7KHFUXVW EORFNVWKHVXQOLJKWDQGDGYHUVHO\DIIHFWVFDUERQDVVLPLODWLRQ7R[LFWUDFHPHWDOV DUHNQRZQWRLQKLELWWKHSODQWHQ]\PHV\VWHP)RUH[DPSOHDUVHQLFLVNQRZQDVD

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

FXPXODWLYHSURWRSODVPLFSRLVRQZKLFKLQKLELWVWKHFRPSOH[DWLRQRIWKLRO±6+ JURXSVLQHQ]\PHV7KXVSODQWJURZWKLVDIIHFWHG6XUIDFHGHSRVLWLRQDOVRUHVWULFWV WKHDUHDRIFDUERQGLR[LGHDEVRUSWLRQUHGXFLQJWKHUDWHRISKRWRV\QWKHVLV 'HSRVLWLRQ RI WR[LF PHWDOV RQ WKH VRLO E\ DFLG UDLQ DQG RWKHU PHFKDQLVPV DOWHUVWKHS+RIWKHVRLOUHQGHULQJWKHPXQVXLWDEOHIRUDGVRUSWLRQE\URRWV4XLWH RIWHQWKHVRLOS+UHGXFHVRQDFFRXQWRIGHSRVLWLRQUHQGHULQJLWDFLGLFDQGLQIHUWLOH

FXPXODWLYHSURWRSODVPLFSRLVRQZKLFKLQKLELWVWKHFRPSOH[DWLRQRIWKLRO±6+ JURXSVLQHQ]\PHV7KXVSODQWJURZWKLVDIIHFWHG6XUIDFHGHSRVLWLRQDOVRUHVWULFWV WKHDUHDRIFDUERQGLR[LGHDEVRUSWLRQUHGXFLQJWKHUDWHRISKRWRV\QWKHVLV 'HSRVLWLRQ RI WR[LF PHWDOV RQ WKH VRLO E\ DFLG UDLQ DQG RWKHU PHFKDQLVPV DOWHUVWKHS+RIWKHVRLOUHQGHULQJWKHPXQVXLWDEOHIRUDGVRUSWLRQE\URRWV4XLWH RIWHQWKHVRLOS+UHGXFHVRQDFFRXQWRIGHSRVLWLRQUHQGHULQJLWDFLGLFDQGLQIHUWLOH

(IIHFWRQ9LVLELOLW\

(IIHFWRQ9LVLELOLW\

/LJKWVFDWWHULQJE\VXVSHQGHGSDUWLFXODWHVLQDLUUHGXFHVWKHYLVLELOLW\7KHVFDWWHULQJ HIILFLHQF\RIWKHDHURVROVLVGHSHQGHQWXSRQWKHVL]HGLVWULEXWLRQRIWKHDHURVRO 7KHH[WHQWRIYLVLELOLW\LVJLYHQE\WKH.RVFKPHLGHU¶VHTXDWLRQ

/LJKWVFDWWHULQJE\VXVSHQGHGSDUWLFXODWHVLQDLUUHGXFHVWKHYLVLELOLW\7KHVFDWWHULQJ HIILFLHQF\RIWKHDHURVROVLVGHSHQGHQWXSRQWKHVL]HGLVWULEXWLRQRIWKHDHURVRO 7KHH[WHQWRIYLVLELOLW\LVJLYHQE\WKH.RVFKPHLGHU¶VHTXDWLRQ

/Y

 NP PJ  P 3DUWLFXODWH FRQFHQWUDWLRQ PJ  P



/Y

 NP PJ  P 3DUWLFXODWH FRQFHQWUDWLRQ PJ  P



ZKHUH/YLVWKHYLVXDOUDQJH(YHQWKRXJKWKLVHTXDWLRQLVHPSLULFDOLQQDWXUHLW JLYHVIDLUO\JRRGUHVXOWV

ZKHUH/YLVWKHYLVXDOUDQJH(YHQWKRXJKWKLVHTXDWLRQLVHPSLULFDOLQQDWXUHLW JLYHVIDLUO\JRRGUHVXOWV

(IIHFWRQ0DWHULDOV

(IIHFWRQ0DWHULDOV

6XVSHQGHGSDUWLFXODWHVLQDLUFDXVHZHDUDQGWHDUGXHWRIULFWLRQ7KH\GDPDJHWKH EXLOGLQJV PHWDO VWUXFWXUHV SDLQWHG VXUIDFHV IXUQLWXUHV HWF 3DLQWHG VXUIDFHV FRUURGH HDVLO\ LQ ZHW FRQGLWLRQV 6WDWXHV PDULQH VWUXFWXUHV JODVV DQG RWKHU VXUIDFHVDUHHDVLO\GHIRUPHGE\IULFWLRQZLWKDHURVROV

6XVSHQGHGSDUWLFXODWHVLQDLUFDXVHZHDUDQGWHDUGXHWRIULFWLRQ7KH\GDPDJHWKH EXLOGLQJV PHWDO VWUXFWXUHV SDLQWHG VXUIDFHV IXUQLWXUHV HWF 3DLQWHG VXUIDFHV FRUURGH HDVLO\ LQ ZHW FRQGLWLRQV 6WDWXHV PDULQH VWUXFWXUHV JODVV DQG RWKHU VXUIDFHVDUHHDVLO\GHIRUPHGE\IULFWLRQZLWKDHURVROV

 68/3+85 ',2;,'(

 68/3+85 ',2;,'(

6XOSKXU GLR[LGH LV DQ LUULWDQW JDV ZKLFK DIIHFWV WKH PXFXV PHPEUDQHV XSRQ LQKDODWLRQ8QGHUFHUWDLQFRQGLWLRQVLWUHDFWVZLWKDTXHRXVDHURVROVDQGJHWVR[LGL]HG WRVXOSKXUWULR[LGH+HQFHERWKVXOSKXUGLR[LGHDQGVXOSKXUWULR[LGHXOWLPDWHO\ IRUP VXOSKXURXV DQG VXOSKXULF DFLGV 6XOSKXU WULR[LGH LV D YHU\ VWURQJ LUULWDQW FDXVLQJVHYHUHEURQFKRVSODVPVDWUHODWLYHO\ORZFRQFHQWUDWLRQV 7KHDYHUDJHOLIHWLPHRIVXOSKXUGLR[LGHLQDLULV±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

6XOSKXU GLR[LGH LV DQ LUULWDQW JDV ZKLFK DIIHFWV WKH PXFXV PHPEUDQHV XSRQ LQKDODWLRQ8QGHUFHUWDLQFRQGLWLRQVLWUHDFWVZLWKDTXHRXVDHURVROVDQGJHWVR[LGL]HG WRVXOSKXUWULR[LGH+HQFHERWKVXOSKXUGLR[LGHDQGVXOSKXUWULR[LGHXOWLPDWHO\ IRUP VXOSKXURXV DQG VXOSKXULF DFLGV 6XOSKXU WULR[LGH LV D YHU\ VWURQJ LUULWDQW FDXVLQJVHYHUHEURQFKRVSODVPVDWUHODWLYHO\ORZFRQFHQWUDWLRQV 7KHDYHUDJHOLIHWLPHRIVXOSKXUGLR[LGHLQDLULV±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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

FXPXODWLYHSURWRSODVPLFSRLVRQZKLFKLQKLELWVWKHFRPSOH[DWLRQRIWKLRO±6+ JURXSVLQHQ]\PHV7KXVSODQWJURZWKLVDIIHFWHG6XUIDFHGHSRVLWLRQDOVRUHVWULFWV WKHDUHDRIFDUERQGLR[LGHDEVRUSWLRQUHGXFLQJWKHUDWHRISKRWRV\QWKHVLV 'HSRVLWLRQ RI WR[LF PHWDOV RQ WKH VRLO E\ DFLG UDLQ DQG RWKHU PHFKDQLVPV DOWHUVWKHS+RIWKHVRLOUHQGHULQJWKHPXQVXLWDEOHIRUDGVRUSWLRQE\URRWV4XLWH RIWHQWKHVRLOS+UHGXFHVRQDFFRXQWRIGHSRVLWLRQUHQGHULQJLWDFLGLFDQGLQIHUWLOH

FXPXODWLYHSURWRSODVPLFSRLVRQZKLFKLQKLELWVWKHFRPSOH[DWLRQRIWKLRO±6+ JURXSVLQHQ]\PHV7KXVSODQWJURZWKLVDIIHFWHG6XUIDFHGHSRVLWLRQDOVRUHVWULFWV WKHDUHDRIFDUERQGLR[LGHDEVRUSWLRQUHGXFLQJWKHUDWHRISKRWRV\QWKHVLV 'HSRVLWLRQ RI WR[LF PHWDOV RQ WKH VRLO E\ DFLG UDLQ DQG RWKHU PHFKDQLVPV DOWHUVWKHS+RIWKHVRLOUHQGHULQJWKHPXQVXLWDEOHIRUDGVRUSWLRQE\URRWV4XLWH RIWHQWKHVRLOS+UHGXFHVRQDFFRXQWRIGHSRVLWLRQUHQGHULQJLWDFLGLFDQGLQIHUWLOH

(IIHFWRQ9LVLELOLW\

(IIHFWRQ9LVLELOLW\

/LJKWVFDWWHULQJE\VXVSHQGHGSDUWLFXODWHVLQDLUUHGXFHVWKHYLVLELOLW\7KHVFDWWHULQJ HIILFLHQF\RIWKHDHURVROVLVGHSHQGHQWXSRQWKHVL]HGLVWULEXWLRQRIWKHDHURVRO 7KHH[WHQWRIYLVLELOLW\LVJLYHQE\WKH.RVFKPHLGHU¶VHTXDWLRQ

/LJKWVFDWWHULQJE\VXVSHQGHGSDUWLFXODWHVLQDLUUHGXFHVWKHYLVLELOLW\7KHVFDWWHULQJ HIILFLHQF\RIWKHDHURVROVLVGHSHQGHQWXSRQWKHVL]HGLVWULEXWLRQRIWKHDHURVRO 7KHH[WHQWRIYLVLELOLW\LVJLYHQE\WKH.RVFKPHLGHU¶VHTXDWLRQ

/Y

 NP PJ  P 3DUWLFXODWH FRQFHQWUDWLRQ PJ  P



/Y

 NP PJ  P 3DUWLFXODWH FRQFHQWUDWLRQ PJ  P



ZKHUH/YLVWKHYLVXDOUDQJH(YHQWKRXJKWKLVHTXDWLRQLVHPSLULFDOLQQDWXUHLW JLYHVIDLUO\JRRGUHVXOWV

ZKHUH/YLVWKHYLVXDOUDQJH(YHQWKRXJKWKLVHTXDWLRQLVHPSLULFDOLQQDWXUHLW JLYHVIDLUO\JRRGUHVXOWV

(IIHFWRQ0DWHULDOV

(IIHFWRQ0DWHULDOV

6XVSHQGHGSDUWLFXODWHVLQDLUFDXVHZHDUDQGWHDUGXHWRIULFWLRQ7KH\GDPDJHWKH EXLOGLQJV PHWDO VWUXFWXUHV SDLQWHG VXUIDFHV IXUQLWXUHV HWF 3DLQWHG VXUIDFHV FRUURGH HDVLO\ LQ ZHW FRQGLWLRQV 6WDWXHV PDULQH VWUXFWXUHV JODVV DQG RWKHU VXUIDFHVDUHHDVLO\GHIRUPHGE\IULFWLRQZLWKDHURVROV

6XVSHQGHGSDUWLFXODWHVLQDLUFDXVHZHDUDQGWHDUGXHWRIULFWLRQ7KH\GDPDJHWKH EXLOGLQJV PHWDO VWUXFWXUHV SDLQWHG VXUIDFHV IXUQLWXUHV HWF 3DLQWHG VXUIDFHV FRUURGH HDVLO\ LQ ZHW FRQGLWLRQV 6WDWXHV PDULQH VWUXFWXUHV JODVV DQG RWKHU VXUIDFHVDUHHDVLO\GHIRUPHGE\IULFWLRQZLWKDHURVROV

 68/3+85 ',2;,'(

 68/3+85 ',2;,'(

6XOSKXU GLR[LGH LV DQ LUULWDQW JDV ZKLFK DIIHFWV WKH PXFXV PHPEUDQHV XSRQ LQKDODWLRQ8QGHUFHUWDLQFRQGLWLRQVLWUHDFWVZLWKDTXHRXVDHURVROVDQGJHWVR[LGL]HG WRVXOSKXUWULR[LGH+HQFHERWKVXOSKXUGLR[LGHDQGVXOSKXUWULR[LGHXOWLPDWHO\ IRUP VXOSKXURXV DQG VXOSKXULF DFLGV 6XOSKXU WULR[LGH LV D YHU\ VWURQJ LUULWDQW FDXVLQJVHYHUHEURQFKRVSODVPVDWUHODWLYHO\ORZFRQFHQWUDWLRQV 7KHDYHUDJHOLIHWLPHRIVXOSKXUGLR[LGHLQDLULV± GD\V4XLWHRIWHQVXOSKXU GLR[LGHPROHFXOHVDUHWUDQVSRUWHGXSWRNLORPHWUHVSULRUWRWKHLUHYHQWXDO GHSRVLWLRQ7KHUHIRUHKDUPIXOHIIHFWVRIVXOSKXUGLR[LGHDUHIHOWIDUDZD\IURP WKHVRXUFH+HQFHSROOXWLRQIURPVXOSKXUGLR[LGHKDVLQWHUQDWLRQDOUDPLILFDWLRQV (YHQDWSSPFRQFHQWUDWLRQLWDIIHFWVPDQDQLPDOVSODQWVDQGPDWHULDOV 0RUH WKDQ  RI WKH JOREDO VXOSKXU GLR[LGH HPLVVLRQV RFFXU LQ (XURSH 1RUWK$PHULFD,QGLDDQGIDUHDVW*OREDOHPLVVLRQVRIVXOSKXUGLR[LGHDUHH[SHFWHG WRLQFUHDVHE\DERXWEH\RQG7\SLFDOXUEDQVXOSKXUGLR[LGHOHYHOVDUH DURXQGSSPEXWFRQFHQWUDWLRQVDERYHWKLVOHYHODUHDOVRTXLWHFRPPRQ

6XOSKXU GLR[LGH LV DQ LUULWDQW JDV ZKLFK DIIHFWV WKH PXFXV PHPEUDQHV XSRQ LQKDODWLRQ8QGHUFHUWDLQFRQGLWLRQVLWUHDFWVZLWKDTXHRXVDHURVROVDQGJHWVR[LGL]HG WRVXOSKXUWULR[LGH+HQFHERWKVXOSKXUGLR[LGHDQGVXOSKXUWULR[LGHXOWLPDWHO\ IRUP VXOSKXURXV DQG VXOSKXULF DFLGV 6XOSKXU WULR[LGH LV D YHU\ VWURQJ LUULWDQW FDXVLQJVHYHUHEURQFKRVSODVPVDWUHODWLYHO\ORZFRQFHQWUDWLRQV 7KHDYHUDJHOLIHWLPHRIVXOSKXUGLR[LGHLQDLULV±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

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



 (IIHFWRQ+XPDQV

 (IIHFWRQ+XPDQV

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± SSP RYHU D SHULRG RI VL[ PRQWKV

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± SSP RYHU D SHULRG RI VL[ PRQWKV

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



 (IIHFWRQ+XPDQV

 (IIHFWRQ+XPDQV

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± SSP RYHU D SHULRG RI VL[ PRQWKV

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± SSP RYHU D SHULRG RI VL[ PRQWKV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV Branch from pulmonary vein

Nose

Branch from pulmonary artery

Pharynx Mouth

Larynx Trachea

Terminal bronchiole

Branch from pulmonary artery

Pharynx Mouth

Larynx

Bronchus

Bronchus

Bronchiole

Bronchiole

Diaphragm

Diaphragm Heart

Alveoli

(a)

(b)

Alveoli

(a)

Mucus

Mucus

Smooth muscle

Smooth muscle

Obstructed bronchiole

Normal alveolus

Terminal bronchiole

Left lung

Right lung

Heart

Branch from pulmonary vein

Nose

Trachea

Left lung

Right lung

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

(b)

Obstructed bronchiole

Normal alveolus

Broken down alveolar walls Trapped air

Broken down alveolar walls Trapped air

(c)

(c)

)LJ&XWDZD\GLDJUDPRIWKHUHVSLUDWRU\V\VWHP D 1RUPDOE (QODUJHGDQGF 7\SLFDOVXOSKXUGLR[LGHGDPDJH

)LJ&XWDZD\GLDJUDPRIWKHUHVSLUDWRU\V\VWHP D 1RUPDOE (QODUJHGDQGF 7\SLFDOVXOSKXUGLR[LGHGDPDJH

GHFUHDVHGOLIHVSDQZDVREVHUYHGDWDOOOHYHOVRIH[SRVXUHPRUHVRLQ±SSP UDQJH$XWRSV\UHYHDOHGWKDWWKHUDWVKDGVXIIHUHGP\RFDUGLDOGHJHQHUDWLRQ7KHLU OXQJVVKRZHGFRQJHVWLRQVLQSDWFKHVKDHPRUUKDJHDQGWKHNLGQH\VDOVRVKRZHG QHSKURVLV >@

GHFUHDVHGOLIHVSDQZDVREVHUYHGDWDOOOHYHOVRIH[SRVXUHPRUHVRLQ±SSP UDQJH$XWRSV\UHYHDOHGWKDWWKHUDWVKDGVXIIHUHGP\RFDUGLDOGHJHQHUDWLRQ7KHLU OXQJVVKRZHGFRQJHVWLRQVLQSDWFKHVKDHPRUUKDJHDQGWKHNLGQH\VDOVRVKRZHG QHSKURVLV >@

(IIHFWRQ3ODQWV

(IIHFWRQ3ODQWV

6XOSKXU GLR[LGH LQMXU\ ILUVW DSSHDUV LQ VSRQJ\ SDUHQFK\PDO FHOOV RI WKH SODQWV 6XEVHTXHQWO\ SDOLVDGH FHOOV DUH DIIHFWHG 7KHVH DUHDV DSSHDU ZDWHU VRDNHG DQG ODWHUWXUQGU\DQGSHSSHU\%OHDFKLQJRIOHDIFRYHUWRWDQLVTXLWHFRPPRQ$WSHDN OHYHOVOLJKWFRORXUHGEORWFKHVDSSHDUZKLFKDUHPDLQO\RILQWUDYLHQDORULJLQ

6XOSKXU GLR[LGH LQMXU\ ILUVW DSSHDUV LQ VSRQJ\ SDUHQFK\PDO FHOOV RI WKH SODQWV 6XEVHTXHQWO\ SDOLVDGH FHOOV DUH DIIHFWHG 7KHVH DUHDV DSSHDU ZDWHU VRDNHG DQG ODWHUWXUQGU\DQGSHSSHU\%OHDFKLQJRIOHDIFRYHUWRWDQLVTXLWHFRPPRQ$WSHDN OHYHOVOLJKWFRORXUHGEORWFKHVDSSHDUZKLFKDUHPDLQO\RILQWUDYLHQDORULJLQ

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

Branch from pulmonary vein

Nose

Branch from pulmonary artery

Pharynx Mouth

Larynx Trachea

Terminal bronchiole

Branch from pulmonary artery

Pharynx Mouth

Larynx Trachea

Left lung

Right lung Bronchus

Bronchus

Bronchiole

Bronchiole

Diaphragm

Diaphragm Heart

Alveoli

(a)

(b)

Alveoli

(a)

Mucus

Mucus

Smooth muscle

Smooth muscle

Obstructed bronchiole

Normal alveolus

Terminal bronchiole

Left lung

Right lung

Heart

Branch from pulmonary vein

Nose

(b)

Obstructed bronchiole

Normal alveolus

Broken down alveolar walls Trapped air

Broken down alveolar walls Trapped air

(c)

(c)

)LJ&XWDZD\GLDJUDPRIWKHUHVSLUDWRU\V\VWHP D 1RUPDOE (QODUJHGDQGF 7\SLFDOVXOSKXUGLR[LGHGDPDJH

)LJ&XWDZD\GLDJUDPRIWKHUHVSLUDWRU\V\VWHP D 1RUPDOE (QODUJHGDQGF 7\SLFDOVXOSKXUGLR[LGHGDPDJH

GHFUHDVHGOLIHVSDQZDVREVHUYHGDWDOOOHYHOVRIH[SRVXUHPRUHVRLQ±SSP UDQJH$XWRSV\UHYHDOHGWKDWWKHUDWVKDGVXIIHUHGP\RFDUGLDOGHJHQHUDWLRQ7KHLU OXQJVVKRZHGFRQJHVWLRQVLQSDWFKHVKDHPRUUKDJHDQGWKHNLGQH\VDOVRVKRZHG QHSKURVLV >@

GHFUHDVHGOLIHVSDQZDVREVHUYHGDWDOOOHYHOVRIH[SRVXUHPRUHVRLQ±SSP UDQJH$XWRSV\UHYHDOHGWKDWWKHUDWVKDGVXIIHUHGP\RFDUGLDOGHJHQHUDWLRQ7KHLU OXQJVVKRZHGFRQJHVWLRQVLQSDWFKHVKDHPRUUKDJHDQGWKHNLGQH\VDOVRVKRZHG QHSKURVLV >@

(IIHFWRQ3ODQWV

(IIHFWRQ3ODQWV

6XOSKXU GLR[LGH LQMXU\ ILUVW DSSHDUV LQ VSRQJ\ SDUHQFK\PDO FHOOV RI WKH SODQWV 6XEVHTXHQWO\ SDOLVDGH FHOOV DUH DIIHFWHG 7KHVH DUHDV DSSHDU ZDWHU VRDNHG DQG ODWHUWXUQGU\DQGSHSSHU\%OHDFKLQJRIOHDIFRYHUWRWDQLVTXLWHFRPPRQ$WSHDN OHYHOVOLJKWFRORXUHGEORWFKHVDSSHDUZKLFKDUHPDLQO\RILQWUDYLHQDORULJLQ

6XOSKXU GLR[LGH LQMXU\ ILUVW DSSHDUV LQ VSRQJ\ SDUHQFK\PDO FHOOV RI WKH SODQWV 6XEVHTXHQWO\ SDOLVDGH FHOOV DUH DIIHFWHG 7KHVH DUHDV DSSHDU ZDWHU VRDNHG DQG ODWHUWXUQGU\DQGSHSSHU\%OHDFKLQJRIOHDIFRYHUWRWDQLVTXLWHFRPPRQ$WSHDN OHYHOVOLJKWFRORXUHGEORWFKHVDSSHDUZKLFKDUHPDLQO\RILQWUDYLHQDORULJLQ

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



&RQWLQXRXVFKURQLFH[SRVXUHWRORZOHYHOVRIVXOSKXUGLR[LGHSURGXFHVGLIIXVHG FKORURVLVLQEURDGOHDYHV*UDVVHVGRQRWKDYHSDOLVDGHOD\HUDQGXQLIRUPO\EOHDFKHG &RQLIHUOHDYHVXQGRXEWHGO\ORVHZDWHUDVWKHFHOOVGLHDQGFKORURSK\OOLVGHVWUR\HG 7KHQHHGOHVEHFRPHEURZQDQGEULWWOH H+, SO–4,NO–3 F–

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



&RQWLQXRXVFKURQLFH[SRVXUHWRORZOHYHOVRIVXOSKXUGLR[LGHSURGXFHVGLIIXVHG FKORURVLVLQEURDGOHDYHV*UDVVHVGRQRWKDYHSDOLVDGHOD\HUDQGXQLIRUPO\EOHDFKHG &RQLIHUOHDYHVXQGRXEWHGO\ORVHZDWHUDVWKHFHOOVGLHDQGFKORURSK\OOLVGHVWUR\HG 7KHQHHGOHVEHFRPHEURZQDQGEULWWOH H+, SO–4,NO–3 F–

CO2, SO2, NO2, HF

CO2, SO2, NO2, HF

Ra

Ra Cuticle

Cuticle

Epidermis

Rm

Epidermis

Rm

Rc

Rc

Extracellular fluid

Substomatal space

Extracellular fluid

Rm

Substomatal space

Rm Cellulose cell wall

Mesophyll

Chloroplast

Cellulose cell wall

Mesophyll

Plasma membrane

Chloroplast

Plasma membrane

)LJ(IIHFWRI62RQWKHFHOOVWUXFWXUH

)LJ(IIHFWRI62RQWKHFHOOVWUXFWXUH

7\SLFDOFHOOVWUXFWXUHRIDOHDILVVKRZQLQ)LJ6XOSKXUGLR[LGHHQWHUV WKHOHDIDVDJDVDQGDFWVGLUHFWO\RQWKHIXQFWLRQDOFHOOVQHDUWKHVWRPDWD2ZLQJ WRWKHVROXELOLW\RI62OHDGLQJWRWKHIRUPDWLRQVXOSKXURXVDQGVXOSKXULFDFLGV WKHDFLGVZLOOH[KHUWDGHWULPHQWDOHIIHFWXSRQWKHDELOLW\RIWKHSODQWWRWUDQVSRUW DQGXVHZDWHUDQGRWKHUSKRWRV\QWKHWLFSURGXFWV(IIHFWRI62XSWDNHLQSODQWVLV VKRZVLQ7DEOH

7\SLFDOFHOOVWUXFWXUHRIDOHDILVVKRZQLQ)LJ6XOSKXUGLR[LGHHQWHUV WKHOHDIDVDJDVDQGDFWVGLUHFWO\RQWKHIXQFWLRQDOFHOOVQHDUWKHVWRPDWD2ZLQJ WRWKHVROXELOLW\RI62OHDGLQJWRWKHIRUPDWLRQVXOSKXURXVDQGVXOSKXULFDFLGV WKHDFLGVZLOOH[KHUWDGHWULPHQWDOHIIHFWXSRQWKHDELOLW\RIWKHSODQWWRWUDQVSRUW DQGXVHZDWHUDQGRWKHUSKRWRV\QWKHWLFSURGXFWV(IIHFWRI62XSWDNHLQSODQWVLV VKRZVLQ7DEOH

7DEOH(IIHFWRI62XSWDNHLQSODQWV

7DEOH(IIHFWRI62XSWDNHLQSODQWV

3ODQWSDUWV

(IIHFW

3ODQWSDUWV

(IIHFW

6WRPDWD

,PPHGLDWHO\SLFNHGXSDQGDIIHFWHG

6WRPDWD

,PPHGLDWHO\SLFNHGXSDQGDIIHFWHG

&HOOOHYHO

,QFUHDVHLQDFLGLW\DQGRWKHULRQVGDPDJHWRSODVPD PHPEUDQHV FHOOV GHWULPHQWDO HIIHFW RQ ZDWHU PRYHPHQW DQG SKRWRV\QWKHVLV

&HOOOHYHO

,QFUHDVHLQDFLGLW\DQGRWKHULRQVGDPDJHWRSODVPD PHPEUDQHV FHOOV GHWULPHQWDO HIIHFW RQ ZDWHU PRYHPHQW DQG SKRWRV\QWKHVLV

(Q]\PHV

'HFUHDVHLQDFWLYLW\GXHWRFKDQJHLQS+

(Q]\PHV

'HFUHDVHLQDFWLYLW\GXHWRFKDQJHLQS+

1RWLFHDEOH SK\VLRORJLFDO FKDQJHV

$URXQGSSPLQ±KRXUV

1RWLFHDEOH SK\VLRORJLFDO FKDQJHV

$URXQGSSPLQ±KRXUV

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



&RQWLQXRXVFKURQLFH[SRVXUHWRORZOHYHOVRIVXOSKXUGLR[LGHSURGXFHVGLIIXVHG FKORURVLVLQEURDGOHDYHV*UDVVHVGRQRWKDYHSDOLVDGHOD\HUDQGXQLIRUPO\EOHDFKHG &RQLIHUOHDYHVXQGRXEWHGO\ORVHZDWHUDVWKHFHOOVGLHDQGFKORURSK\OOLVGHVWUR\HG 7KHQHHGOHVEHFRPHEURZQDQGEULWWOH H+, SO–4,NO–3 F–

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



&RQWLQXRXVFKURQLFH[SRVXUHWRORZOHYHOVRIVXOSKXUGLR[LGHSURGXFHVGLIIXVHG FKORURVLVLQEURDGOHDYHV*UDVVHVGRQRWKDYHSDOLVDGHOD\HUDQGXQLIRUPO\EOHDFKHG &RQLIHUOHDYHVXQGRXEWHGO\ORVHZDWHUDVWKHFHOOVGLHDQGFKORURSK\OOLVGHVWUR\HG 7KHQHHGOHVEHFRPHEURZQDQGEULWWOH H+, SO–4,NO–3 F–

CO2, SO2, NO2, HF

CO2, SO2, NO2, HF

Ra

Ra Cuticle

Cuticle

Epidermis

Rm

Epidermis

Rm

Rc

Rc

Extracellular fluid

Substomatal space

Extracellular fluid

Rm

Rm Cellulose cell wall

Mesophyll

Chloroplast

Substomatal space Cellulose cell wall

Mesophyll

Plasma membrane

Chloroplast

Plasma membrane

)LJ(IIHFWRI62RQWKHFHOOVWUXFWXUH

)LJ(IIHFWRI62RQWKHFHOOVWUXFWXUH

7\SLFDOFHOOVWUXFWXUHRIDOHDILVVKRZQLQ)LJ6XOSKXUGLR[LGHHQWHUV WKHOHDIDVDJDVDQGDFWVGLUHFWO\RQWKHIXQFWLRQDOFHOOVQHDUWKHVWRPDWD2ZLQJ WRWKHVROXELOLW\RI62OHDGLQJWRWKHIRUPDWLRQVXOSKXURXVDQGVXOSKXULFDFLGV WKHDFLGVZLOOH[KHUWDGHWULPHQWDOHIIHFWXSRQWKHDELOLW\RIWKHSODQWWRWUDQVSRUW DQGXVHZDWHUDQGRWKHUSKRWRV\QWKHWLFSURGXFWV(IIHFWRI62XSWDNHLQSODQWVLV VKRZVLQ7DEOH

7\SLFDOFHOOVWUXFWXUHRIDOHDILVVKRZQLQ)LJ6XOSKXUGLR[LGHHQWHUV WKHOHDIDVDJDVDQGDFWVGLUHFWO\RQWKHIXQFWLRQDOFHOOVQHDUWKHVWRPDWD2ZLQJ WRWKHVROXELOLW\RI62OHDGLQJWRWKHIRUPDWLRQVXOSKXURXVDQGVXOSKXULFDFLGV WKHDFLGVZLOOH[KHUWDGHWULPHQWDOHIIHFWXSRQWKHDELOLW\RIWKHSODQWWRWUDQVSRUW DQGXVHZDWHUDQGRWKHUSKRWRV\QWKHWLFSURGXFWV(IIHFWRI62XSWDNHLQSODQWVLV VKRZVLQ7DEOH

7DEOH(IIHFWRI62XSWDNHLQSODQWV

7DEOH(IIHFWRI62XSWDNHLQSODQWV

3ODQWSDUWV

(IIHFW

3ODQWSDUWV

(IIHFW

6WRPDWD

,PPHGLDWHO\SLFNHGXSDQGDIIHFWHG

6WRPDWD

,PPHGLDWHO\SLFNHGXSDQGDIIHFWHG

&HOOOHYHO

,QFUHDVHLQDFLGLW\DQGRWKHULRQVGDPDJHWRSODVPD PHPEUDQHV FHOOV GHWULPHQWDO HIIHFW RQ ZDWHU PRYHPHQW DQG SKRWRV\QWKHVLV

&HOOOHYHO

,QFUHDVHLQDFLGLW\DQGRWKHULRQVGDPDJHWRSODVPD PHPEUDQHV FHOOV GHWULPHQWDO HIIHFW RQ ZDWHU PRYHPHQW DQG SKRWRV\QWKHVLV

(Q]\PHV

'HFUHDVHLQDFWLYLW\GXHWRFKDQJHLQS+

(Q]\PHV

'HFUHDVHLQDFWLYLW\GXHWRFKDQJHLQS+

1RWLFHDEOH SK\VLRORJLFDO FKDQJHV

$URXQGSSPLQ±KRXUV

1RWLFHDEOH SK\VLRORJLFDO FKDQJHV

$URXQGSSPLQ±KRXUV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

62  DOVR GLUHFWO\ DIIHFWV WKH DFWLRQ RI HQ]\PHV VXFK DV ULEXORVH ELSKRVSKDWH FDUER[\ODVH R[\JHQDVH HWF E\ UHGXFLQJ WKH S+ EHORZ  WR XQDFFHSWDEOH OHYHOV >@ $V D UHVXOW SKRWRV\QWKHVLV GHFUHDVHV E\  (YHQ D VPDOOFKDQJHLQ62OHYHOVDIIHFWVWKHJURZWKRIDSODQWVLJQLILFDQWO\,QMXULRXV OHYHOVRI62IRUGLIIHUHQWW\SHVRIWUHHVDUHVKRZQLQ7DEOHVDQG

62  DOVR GLUHFWO\ DIIHFWV WKH DFWLRQ RI HQ]\PHV VXFK DV ULEXORVH ELSKRVSKDWH FDUER[\ODVH R[\JHQDVH HWF E\ UHGXFLQJ WKH S+ EHORZ  WR XQDFFHSWDEOH OHYHOV >@ $V D UHVXOW SKRWRV\QWKHVLV GHFUHDVHV E\  (YHQ D VPDOOFKDQJHLQ62OHYHOVDIIHFWVWKHJURZWKRIDSODQWVLJQLILFDQWO\,QMXULRXV OHYHOVRI62IRUGLIIHUHQWW\SHVRIWUHHVDUHVKRZQLQ7DEOHVDQG

7DEOH,QMXULRXVOHYHOVRI62LQWUHHV

7DEOH,QMXULRXVOHYHOVRI62LQWUHHV

7UHH

62FRQFSSP

7LPHWRSURGXFHLQMXU\KUV

7UHH

62FRQFSSP

7LPHWRSURGXFHLQMXU\KUV

$SSOH





$SSOH





3HDU





3HDU





0DQJR





0DQJR





0RXQWDLQDVK





0RXQWDLQDVK





3RQGHURVDSLQH





3RQGHURVDSLQH





 (IIHFW RQ 0DWHULDOV

 (IIHFW RQ 0DWHULDOV

$LUSROOXWHGZLWKVXOSKXUGLR[LGHDQGFKDUFRDOSDUWLFOHVSURGXFHVFRUURVLRQDWD PRUHUDSLGUDWHWKDQ62DORQH&KDUFRDOSDUWLFOHVDGVRUEWKHJDVDQGFUHDWHµKRW VSRWV¶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

$LUSROOXWHGZLWKVXOSKXUGLR[LGHDQGFKDUFRDOSDUWLFOHVSURGXFHVFRUURVLRQDWD PRUHUDSLGUDWHWKDQ62DORQH&KDUFRDOSDUWLFOHVDGVRUEWKHJDVDQGFUHDWHµKRW VSRWV¶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

 &$5%21 0212;,'(

 &$5%21 0212;,'(

&DUERQ PRQR[LGH LV D FRORXUOHVV WDVWHOHVV DQG RGRXUOHVV JDV 7KH EDFNJURXQG FRQFHQWUDWLRQLQWKHQDWXUDODWPRVSKHUHLVSSP0RUHWKDQJLJDWRQVRI FDUERQ PRQR[LGH HQWHUV WKH DWPRVSKHUH HYHU\ \HDU RI ZKLFK RQO\  FRPHV IURPQDWXUDOFDXVHVDQGWKHUHVWIURPDQWKURSRJHQLFVRXUFHV,QXUEDQDWPRVSKHUH DOPRVWDOOFDUERQPRQR[LGHRULJLQDWHVIURPWUDQVSRUWVHFWRU

&DUERQ PRQR[LGH LV D FRORXUOHVV WDVWHOHVV DQG RGRXUOHVV JDV 7KH EDFNJURXQG FRQFHQWUDWLRQLQWKHQDWXUDODWPRVSKHUHLVSSP0RUHWKDQJLJDWRQVRI FDUERQ PRQR[LGH HQWHUV WKH DWPRVSKHUH HYHU\ \HDU RI ZKLFK RQO\  FRPHV IURPQDWXUDOFDXVHVDQGWKHUHVWIURPDQWKURSRJHQLFVRXUFHV,QXUEDQDWPRVSKHUH DOPRVWDOOFDUERQPRQR[LGHRULJLQDWHVIURPWUDQVSRUWVHFWRU

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

62  DOVR GLUHFWO\ DIIHFWV WKH DFWLRQ RI HQ]\PHV VXFK DV ULEXORVH ELSKRVSKDWH FDUER[\ODVH R[\JHQDVH HWF E\ UHGXFLQJ WKH S+ EHORZ  WR XQDFFHSWDEOH OHYHOV >@ $V D UHVXOW SKRWRV\QWKHVLV GHFUHDVHV E\  (YHQ D VPDOOFKDQJHLQ62OHYHOVDIIHFWVWKHJURZWKRIDSODQWVLJQLILFDQWO\,QMXULRXV OHYHOVRI62IRUGLIIHUHQWW\SHVRIWUHHVDUHVKRZQLQ7DEOHVDQG

62  DOVR GLUHFWO\ DIIHFWV WKH DFWLRQ RI HQ]\PHV VXFK DV ULEXORVH ELSKRVSKDWH FDUER[\ODVH R[\JHQDVH HWF E\ UHGXFLQJ WKH S+ EHORZ  WR XQDFFHSWDEOH OHYHOV >@ $V D UHVXOW SKRWRV\QWKHVLV GHFUHDVHV E\  (YHQ D VPDOOFKDQJHLQ62OHYHOVDIIHFWVWKHJURZWKRIDSODQWVLJQLILFDQWO\,QMXULRXV OHYHOVRI62IRUGLIIHUHQWW\SHVRIWUHHVDUHVKRZQLQ7DEOHVDQG

7DEOH,QMXULRXVOHYHOVRI62LQWUHHV

7DEOH,QMXULRXVOHYHOVRI62LQWUHHV

7UHH

62FRQFSSP

7LPHWRSURGXFHLQMXU\KUV

7UHH

62FRQFSSP

7LPHWRSURGXFHLQMXU\KUV

$SSOH





$SSOH





3HDU





3HDU





0DQJR





0DQJR





0RXQWDLQDVK





0RXQWDLQDVK





3RQGHURVDSLQH





3RQGHURVDSLQH





 (IIHFW RQ 0DWHULDOV

 (IIHFW RQ 0DWHULDOV

$LUSROOXWHGZLWKVXOSKXUGLR[LGHDQGFKDUFRDOSDUWLFOHVSURGXFHVFRUURVLRQDWD PRUHUDSLGUDWHWKDQ62DORQH&KDUFRDOSDUWLFOHVDGVRUEWKHJDVDQGFUHDWHµKRW VSRWV¶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

$LUSROOXWHGZLWKVXOSKXUGLR[LGHDQGFKDUFRDOSDUWLFOHVSURGXFHVFRUURVLRQDWD PRUHUDSLGUDWHWKDQ62DORQH&KDUFRDOSDUWLFOHVDGVRUEWKHJDVDQGFUHDWHµKRW VSRWV¶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

 &$5%21 0212;,'(

 &$5%21 0212;,'(

&DUERQ PRQR[LGH LV D FRORXUOHVV WDVWHOHVV DQG RGRXUOHVV JDV 7KH EDFNJURXQG FRQFHQWUDWLRQLQWKHQDWXUDODWPRVSKHUHLVSSP0RUHWKDQJLJDWRQVRI FDUERQ PRQR[LGH HQWHUV WKH DWPRVSKHUH HYHU\ \HDU RI ZKLFK RQO\  FRPHV IURPQDWXUDOFDXVHVDQGWKHUHVWIURPDQWKURSRJHQLFVRXUFHV,QXUEDQDWPRVSKHUH DOPRVWDOOFDUERQPRQR[LGHRULJLQDWHVIURPWUDQVSRUWVHFWRU

&DUERQ PRQR[LGH LV D FRORXUOHVV WDVWHOHVV DQG RGRXUOHVV JDV 7KH EDFNJURXQG FRQFHQWUDWLRQLQWKHQDWXUDODWPRVSKHUHLVSSP0RUHWKDQJLJDWRQVRI FDUERQ PRQR[LGH HQWHUV WKH DWPRVSKHUH HYHU\ \HDU RI ZKLFK RQO\  FRPHV IURPQDWXUDOFDXVHVDQGWKHUHVWIURPDQWKURSRJHQLFVRXUFHV,QXUEDQDWPRVSKHUH DOPRVWDOOFDUERQPRQR[LGHRULJLQDWHVIURPWUDQVSRUWVHFWRU

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



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

+E2   &2 o +E&2  2 

+E2   &2 o +E&2  2 



$SLFWRULDOUHSUHVHQWDWLRQRIKDHPWRR[\JHQLVVKRZQLQ)LJ Protein

$SLFWRULDOUHSUHVHQWDWLRQRIKDHPWRR[\JHQLVVKRZQLQ)LJ Protein

Protein

Protein

N

N

N 2+ Fe

N

N

N 2+ Fe

N

N

N

O2



N

N 2+ Fe

+O2

2+ Fe

N

N

Hb

N

N

N

N

O2

+O2 N

Hb

)LJ2[\JHQKDHPRJORELQH[FKDQJHLQEORRG

)LJ2[\JHQKDHPRJORELQH[FKDQJHLQEORRG

$ERXWRI&2UHOHDVHGE\WKHERG\WLVVXHVLVWUDQVSRUWHGEDFNLQWRWKH OXQJVDQGH[KDOHG7KHUHPDLQLQJLVWUDQVSRUWHGDVELFDUERQDWHDQGUHDFWVZLWK KDHPRJORELQ WR IRUP FDUER[\KDHPRJORELQ /RZHU SDUWLDO SUHVVXUH LQ WKH OXQJV UHOHDVHV&2ZKLFKLVH[KDOHG 7KHFKHPLFDODIILQLW\RI&2WRKDHPLV ±WLPHVJUHDWHUWKDQWKDWRI R[\JHQZKLFKPHDQVWKDWWKHDPRXQWRIR[\JHQFDUULHGE\WKHUHGEORRGFHOOV UHGXFHV E\ WKH VDPH DPRXQW 7KHUHIRUH OHVV R[\JHQ LV DYDLODEOH IRU WLVVXH UHVSLUDWLRQ7KLVWUDQVIRUPVLQWRDVLWXDWLRQZKHUHDOOV\PSWRPVRI&2WR[LFLW\LV

$ERXWRI&2UHOHDVHGE\WKHERG\WLVVXHVLVWUDQVSRUWHGEDFNLQWRWKH OXQJVDQGH[KDOHG7KHUHPDLQLQJLVWUDQVSRUWHGDVELFDUERQDWHDQGUHDFWVZLWK KDHPRJORELQ WR IRUP FDUER[\KDHPRJORELQ /RZHU SDUWLDO SUHVVXUH LQ WKH OXQJV UHOHDVHV&2ZKLFKLVH[KDOHG 7KHFKHPLFDODIILQLW\RI&2WRKDHPLV ±WLPHVJUHDWHUWKDQWKDWRI R[\JHQZKLFKPHDQVWKDWWKHDPRXQWRIR[\JHQFDUULHGE\WKHUHGEORRGFHOOV UHGXFHV E\ WKH VDPH DPRXQW 7KHUHIRUH OHVV R[\JHQ LV DYDLODEOH IRU WLVVXH UHVSLUDWLRQ7KLVWUDQVIRUPVLQWRDVLWXDWLRQZKHUHDOOV\PSWRPVRI&2WR[LFLW\LV

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



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

+E2   &2 o +E&2  2 

+E2   &2 o +E&2  2 



$SLFWRULDOUHSUHVHQWDWLRQRIKDHPWRR[\JHQLVVKRZQLQ)LJ Protein

$SLFWRULDOUHSUHVHQWDWLRQRIKDHPWRR[\JHQLVVKRZQLQ)LJ Protein

Protein

Protein

N

N

N 2+ Fe N

2+ Fe N

O2

N

N

N

N



N

N 2+ Fe

+O2 N

Hb

N

2+ Fe N

O2

N

N

N

+O2 N

Hb

)LJ2[\JHQKDHPRJORELQH[FKDQJHLQEORRG

)LJ2[\JHQKDHPRJORELQH[FKDQJHLQEORRG

$ERXWRI&2UHOHDVHGE\WKHERG\WLVVXHVLVWUDQVSRUWHGEDFNLQWRWKH OXQJVDQGH[KDOHG7KHUHPDLQLQJLVWUDQVSRUWHGDVELFDUERQDWHDQGUHDFWVZLWK KDHPRJORELQ WR IRUP FDUER[\KDHPRJORELQ /RZHU SDUWLDO SUHVVXUH LQ WKH OXQJV UHOHDVHV&2ZKLFKLVH[KDOHG 7KHFKHPLFDODIILQLW\RI&2WRKDHPLV ±WLPHVJUHDWHUWKDQWKDWRI R[\JHQZKLFKPHDQVWKDWWKHDPRXQWRIR[\JHQFDUULHGE\WKHUHGEORRGFHOOV UHGXFHV E\ WKH VDPH DPRXQW 7KHUHIRUH OHVV R[\JHQ LV DYDLODEOH IRU WLVVXH UHVSLUDWLRQ7KLVWUDQVIRUPVLQWRDVLWXDWLRQZKHUHDOOV\PSWRPVRI&2WR[LFLW\LV

$ERXWRI&2UHOHDVHGE\WKHERG\WLVVXHVLVWUDQVSRUWHGEDFNLQWRWKH OXQJVDQGH[KDOHG7KHUHPDLQLQJLVWUDQVSRUWHGDVELFDUERQDWHDQGUHDFWVZLWK KDHPRJORELQ WR IRUP FDUER[\KDHPRJORELQ /RZHU SDUWLDO SUHVVXUH LQ WKH OXQJV UHOHDVHV&2ZKLFKLVH[KDOHG 7KHFKHPLFDODIILQLW\RI&2WRKDHPLV ±WLPHVJUHDWHUWKDQWKDWRI R[\JHQZKLFKPHDQVWKDWWKHDPRXQWRIR[\JHQFDUULHGE\WKHUHGEORRGFHOOV UHGXFHV E\ WKH VDPH DPRXQW 7KHUHIRUH OHVV R[\JHQ LV DYDLODEOH IRU WLVVXH UHVSLUDWLRQ7KLVWUDQVIRUPVLQWRDVLWXDWLRQZKHUHDOOV\PSWRPVRI&2WR[LFLW\LV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

DIXQFWLRQRI+E&2+E2UDWLR&KDQJHVLQEORRGDFLGLW\RFFXUODUJHO\GXHWRWKH IRUPDWLRQRIFDUERQLFDFLGDFFRUGLQJWRWKHUHDFWLRQ

DIXQFWLRQRI+E&2+E2UDWLR&KDQJHVLQEORRGDFLGLW\RFFXUODUJHO\GXHWRWKH IRUPDWLRQRIFDUERQLFDFLGDFFRUGLQJWRWKHUHDFWLRQ

&2  +  2 l +  &2 l +   +&2

&2  +  2 l +  &2 l +   +&2



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

 &2+E

>&2@ DW 

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



ZKHUH >&2@LVFDUERQPRQR[LGHFRQFHQWUDWLRQLQSSP D LV D SK\VLFDO DFWLYLW\ OHYHO FRHIILFLHQW DQG YDULHV IURP ±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

 &2+E

16

14

14

100

CO

ppm

12

100



CO

ppm

10 % CO Hb

% CO Hb

10 8 6

35 ppm

CO

4

8 6

35 ppm

CO

4

9 ppm CO

2 0

>&2@ DW 

ZKHUH >&2@LVFDUERQPRQR[LGHFRQFHQWUDWLRQLQSSP D LV D SK\VLFDO DFWLYLW\ OHYHO FRHIILFLHQW DQG YDULHV IURP ±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

16

12



1

2

3

5 4 Exposure time

6

7

8

9 ppm CO

2 9

0

10

1

)LJ&2+EOHYHOVDWGLIIHUHQWH[SRVXUHOHYHOV

2

3

5 4 Exposure time

6

7

8

9

10

)LJ&2+EOHYHOVDWGLIIHUHQWH[SRVXUHOHYHOV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

DIXQFWLRQRI+E&2+E2UDWLR&KDQJHVLQEORRGDFLGLW\RFFXUODUJHO\GXHWRWKH IRUPDWLRQRIFDUERQLFDFLGDFFRUGLQJWRWKHUHDFWLRQ

DIXQFWLRQRI+E&2+E2UDWLR&KDQJHVLQEORRGDFLGLW\RFFXUODUJHO\GXHWRWKH IRUPDWLRQRIFDUERQLFDFLGDFFRUGLQJWRWKHUHDFWLRQ

&2  +  2 l +  &2 l +   +&2

&2  +  2 l +  &2 l +   +&2



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

 &2+E

>&2@ DW 

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



ZKHUH >&2@LVFDUERQPRQR[LGHFRQFHQWUDWLRQLQSSP D LV D SK\VLFDO DFWLYLW\ OHYHO FRHIILFLHQW DQG YDULHV IURP ±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

 &2+E

16

14

14

100

CO

ppm

12

100



CO

ppm

10 % CO Hb

% CO Hb

10 8 6

35 ppm

CO

4

8 6

35 ppm

CO

4

9 ppm CO

2 0

>&2@ DW 

ZKHUH >&2@LVFDUERQPRQR[LGHFRQFHQWUDWLRQLQSSP D LV D SK\VLFDO DFWLYLW\ OHYHO FRHIILFLHQW DQG YDULHV IURP ±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

16

12



1

2

3

5 4 Exposure time

6

7

8

)LJ&2+EOHYHOVDWGLIIHUHQWH[SRVXUHOHYHOV

9 ppm CO

2 9

10

0

1

2

3

5 4 Exposure time

6

7

8

)LJ&2+EOHYHOVDWGLIIHUHQWH[SRVXUHOHYHOV

9

10

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



,QXUEDQDUHDV&2OHYHOVYDU\IURP±SSP&LJDUHWWHVPRNHFRQWDLQV SSPRI&26PRNHUVIUHTXHQWO\KDYHWR&2+EOHYHOV,QFRQJHVWHGDUHDV DQGEDUV&2OHYHOVRIWHQUHDFKSSP$W&2+EOHYHOVLPSDLUPHQWRI EUDLQIXQFWLRQEHFRPHVQRWLFHDEOH$W&2+EOHYHOVSV\FKRPRWRUUHVSRQVH WLPHVDUHDIIHFWHG'L]]LQHVVDQGKHDGDFKHDUHREVHUYHGDW&2+EOHYHOV 7KHHIIHFWRI&2RQKXPDQVLVSUHVHQWHGLQ7DEOH

,QXUEDQDUHDV&2OHYHOVYDU\IURP±SSP&LJDUHWWHVPRNHFRQWDLQV SSPRI&26PRNHUVIUHTXHQWO\KDYHWR&2+EOHYHOV,QFRQJHVWHGDUHDV DQGEDUV&2OHYHOVRIWHQUHDFKSSP$W&2+EOHYHOVLPSDLUPHQWRI EUDLQIXQFWLRQEHFRPHVQRWLFHDEOH$W&2+EOHYHOVSV\FKRPRWRUUHVSRQVH WLPHVDUHDIIHFWHG'L]]LQHVVDQGKHDGDFKHDUHREVHUYHGDW&2+EOHYHOV 7KHHIIHFWRI&2RQKXPDQVLVSUHVHQWHGLQ7DEOH

7DEOH(IIHFWRI&2RQKXPDQVDQGFDUER[\KDHPRJORELQEORRGFRQFHQWUDWLRQV

7DEOH(IIHFWRI&2RQKXPDQVDQGFDUER[\KDHPRJORELQEORRGFRQFHQWUDWLRQV

([SRVXUHD—OO±

(IIHFW DQG V\PSWRPV

&2+E+EE

([SRVXUHD—OO±

(IIHFW DQG V\PSWRPV

&2+E+EE

±

1R GLVFRPIRUW RU HIIHFW

±

±

1R GLVFRPIRUW RU HIIHFW

±

±

6RPHWLUHGQHVVLPSDLUHGYLJLODQFHDQGUHGXFWLRQ LQPDQXDOGH[WHULW\

± ±

6RPHWLUHGQHVVLPSDLUHGYLJLODQFHDQGUHGXFWLRQ LQPDQXDOGH[WHULW\

±

±

6OLJKWKHDGDFKHWLUHGQHVVDQGLUULWDELOLW\

±

±

6OLJKWKHDGDFKHWLUHGQHVVDQGLUULWDELOLW\

±

±

0LOGKHDGDFKH

±

±

0LOGKHDGDFKH

±

±

6HYHUHKHDGDFKHYLVXDOLPSDLUPHQWQDXVHD JHQHUDO ZHDNQHVV DQG YRPLWLQJ

± ±

6HYHUHKHDGDFKHYLVXDOLPSDLUPHQWQDXVHD JHQHUDO ZHDNQHVV DQG YRPLWLQJ

±

±

$V DERYH EXW ZLWK JUHDWHU SRVVLELOLW\ RI FROODSVH

±

±

$V DERYH EXW ZLWK JUHDWHU SRVVLELOLW\ RI FROODSVH

±

±

)DLQWLQJLQFUHDVHGSXOVHUDWHDQGFRQYXOVLRQV

±

±

)DLQWLQJLQFUHDVHGSXOVHUDWHDQGFRQYXOVLRQV

±

±

&RPDZHDNSXOVHDQGSRVVLELOLW\RIGHDWK

±

±

&RPDZHDNSXOVHDQGSRVVLELOLW\RIGHDWK

±



'HDWKZLWKLQDVKRUWSHULRG





'HDWKZLWKLQDVKRUWSHULRG



D²$IWHU  K H[SRVXUH E²/LNHO\ SHUFHQWDJH RI FDUER[\KDHPRJORELQ &2+E  WR WRWDO KDHPRJORELQ +E  LQ D UHVWLQJ LQGLYLGXDOEXWZKLFKPD\EHDFKLHYHGWKUHHWLPHVIDVWHUGXULQJ KHDY\ZRUN

D²$IWHU  K H[SRVXUH E²/LNHO\ SHUFHQWDJH RI FDUER[\KDHPRJORELQ &2+E  WR WRWDO KDHPRJORELQ +E  LQ D UHVWLQJ LQGLYLGXDOEXWZKLFKPD\EHDFKLHYHGWKUHHWLPHVIDVWHUGXULQJ KHDY\ZRUN

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±KRXUV7KLVLVHTXLYDOHQWWR +E&2LQWKHEORRG

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±KRXUV7KLVLVHTXLYDOHQWWR +E&2LQWKHEORRG

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



,QXUEDQDUHDV&2OHYHOVYDU\IURP±SSP&LJDUHWWHVPRNHFRQWDLQV SSPRI&26PRNHUVIUHTXHQWO\KDYHWR&2+EOHYHOV,QFRQJHVWHGDUHDV DQGEDUV&2OHYHOVRIWHQUHDFKSSP$W&2+EOHYHOVLPSDLUPHQWRI EUDLQIXQFWLRQEHFRPHVQRWLFHDEOH$W&2+EOHYHOVSV\FKRPRWRUUHVSRQVH WLPHVDUHDIIHFWHG'L]]LQHVVDQGKHDGDFKHDUHREVHUYHGDW&2+EOHYHOV 7KHHIIHFWRI&2RQKXPDQVLVSUHVHQWHGLQ7DEOH

,QXUEDQDUHDV&2OHYHOVYDU\IURP±SSP&LJDUHWWHVPRNHFRQWDLQV SSPRI&26PRNHUVIUHTXHQWO\KDYHWR&2+EOHYHOV,QFRQJHVWHGDUHDV DQGEDUV&2OHYHOVRIWHQUHDFKSSP$W&2+EOHYHOVLPSDLUPHQWRI EUDLQIXQFWLRQEHFRPHVQRWLFHDEOH$W&2+EOHYHOVSV\FKRPRWRUUHVSRQVH WLPHVDUHDIIHFWHG'L]]LQHVVDQGKHDGDFKHDUHREVHUYHGDW&2+EOHYHOV 7KHHIIHFWRI&2RQKXPDQVLVSUHVHQWHGLQ7DEOH

7DEOH(IIHFWRI&2RQKXPDQVDQGFDUER[\KDHPRJORELQEORRGFRQFHQWUDWLRQV

7DEOH(IIHFWRI&2RQKXPDQVDQGFDUER[\KDHPRJORELQEORRGFRQFHQWUDWLRQV

([SRVXUHD—OO±

(IIHFW DQG V\PSWRPV

&2+E+EE

([SRVXUHD—OO±

(IIHFW DQG V\PSWRPV

&2+E+EE

±

1R GLVFRPIRUW RU HIIHFW

±

±

1R GLVFRPIRUW RU HIIHFW

±

±

6RPHWLUHGQHVVLPSDLUHGYLJLODQFHDQGUHGXFWLRQ LQPDQXDOGH[WHULW\

± ±

6RPHWLUHGQHVVLPSDLUHGYLJLODQFHDQGUHGXFWLRQ LQPDQXDOGH[WHULW\

±

±

6OLJKWKHDGDFKHWLUHGQHVVDQGLUULWDELOLW\

±

±

6OLJKWKHDGDFKHWLUHGQHVVDQGLUULWDELOLW\

±

±

0LOGKHDGDFKH

±

±

0LOGKHDGDFKH

±

±

6HYHUHKHDGDFKHYLVXDOLPSDLUPHQWQDXVHD JHQHUDO ZHDNQHVV DQG YRPLWLQJ

± ±

6HYHUHKHDGDFKHYLVXDOLPSDLUPHQWQDXVHD JHQHUDO ZHDNQHVV DQG YRPLWLQJ

±

$V DERYH EXW ZLWK JUHDWHU SRVVLELOLW\ RI FROODSVH

±

±

$V DERYH EXW ZLWK JUHDWHU SRVVLELOLW\ RI FROODSVH

±

±

)DLQWLQJLQFUHDVHGSXOVHUDWHDQGFRQYXOVLRQV

±

±

)DLQWLQJLQFUHDVHGSXOVHUDWHDQGFRQYXOVLRQV

±

±

&RPDZHDNSXOVHDQGSRVVLELOLW\RIGHDWK

±

±

&RPDZHDNSXOVHDQGSRVVLELOLW\RIGHDWK

±



'HDWKZLWKLQDVKRUWSHULRG





'HDWKZLWKLQDVKRUWSHULRG



±

D²$IWHU  K H[SRVXUH E²/LNHO\ SHUFHQWDJH RI FDUER[\KDHPRJORELQ &2+E  WR WRWDO KDHPRJORELQ +E  LQ D UHVWLQJ LQGLYLGXDOEXWZKLFKPD\EHDFKLHYHGWKUHHWLPHVIDVWHUGXULQJ KHDY\ZRUN

D²$IWHU  K H[SRVXUH E²/LNHO\ SHUFHQWDJH RI FDUER[\KDHPRJORELQ &2+E  WR WRWDO KDHPRJORELQ +E  LQ D UHVWLQJ LQGLYLGXDOEXWZKLFKPD\EHDFKLHYHGWKUHHWLPHVIDVWHUGXULQJ KHDY\ZRUN

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±KRXUV7KLVLVHTXLYDOHQWWR +E&2LQWKHEORRG

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±KRXUV7KLVLVHTXLYDOHQWWR +E&2LQWKHEORRG

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 +@ 2UJDQLF FRPSRXQGV DUH QRW YHU\ VWDEOH LQ WKH DWPRVSKHUH DQG WKH\ DUH GHVWUR\HGDWYDU\LQJUDWHVE\RWKHUDLUSROOXWDQWVDQGE\89UDGLDWLRQ+RZHYHU WKHLUDWPRVSKHULFLQSXWIDUH[FHHGVWKHGHVWUXFWLRQUDWHDQG+&OHYHOVDUHVWHDGLO\ LQFUHDVLQJ

(IIHFWRQ3ODQWV

(IIHFWRQ3ODQWV

+\GURFDUERQVDQGRUJDQLFFRPSRXQGVDUHLQMXULRXVWRSODQWVDQGFDXVHVFKORURVLV 3KRWRFKHPLFDOR[LGDQWVDQGR]RQHLQGXFHOLJKWIOHFNVRUVWLSSOHVRQWKHOHDIVXUIDFHV WKHUHE\LQKLELWLQJWKHSKRWRV\QWKHWLFDFWLYLW\(WK\OHQHHYHQDWSSPFDXVHVDGYHUVH HIIHFWVRQYHJHWDWLRQ>@$FHW\OHQHDQGSURS\OHQHDUHDOVRH[WUHPHO\WR[LFWRZDUGV SODQWVDWDQGSSP

+\GURFDUERQVDQGRUJDQLFFRPSRXQGVDUHLQMXULRXVWRSODQWVDQGFDXVHVFKORURVLV 3KRWRFKHPLFDOR[LGDQWVDQGR]RQHLQGXFHOLJKWIOHFNVRUVWLSSOHVRQWKHOHDIVXUIDFHV WKHUHE\LQKLELWLQJWKHSKRWRV\QWKHWLFDFWLYLW\(WK\OHQHHYHQDWSSPFDXVHVDGYHUVH HIIHFWVRQYHJHWDWLRQ>@$FHW\OHQHDQGSURS\OHQHDUHDOVRH[WUHPHO\WR[LFWRZDUGV SODQWVDWDQGSSP

(IIHFWRQ0DWHULDOV

(IIHFWRQ0DWHULDOV

2UJDQLF DLU SROOXWDQWV GDPDJH SRO\PHU VWUXFWXUHV FDXVLQJ ORVV RI PHFKDQLFDO SURSHUWLHVVXFKDVWHQVLOHVWUHQJWKLPSDFWVWUHQJWKHWF(ODVWRPHUVDOVRORVHVRPH RIWKHLULPSRUWDQWPHFKDQLFDOSURSHUWLHVRZLQJWRWKHEUHDNDJHRI&&FKDLQV $OGHK\GHV VXFK IRUPDOGHK\GH DFUROHLQ DFHWDOGHK\GH QEXWDUDOGHK\GH IXUIXUDOGHK\GHHWFUHDFWGLUHFWO\ZLWKIUHHDPLQRJURXSVRISURWHLQVDQGSURGXFH K\SHUVHQVLWLYLW\LQVRPHSHUVRQV7KHLUULWDQWDFWLRQRIIRUPDOGHK\GHRFFXUVLQ ±SSPOHYHOVDQGWKDWRIDFUROHLQFURWRQDOGHK\GHDWPXFKORZHUOHYHOV7KH LUULWDWLRQ FRQVLVWV RI LWFKLQJ RI H\HV GU\ DQG VRUH WKURDWV GLVWXUEHG VOHHS DQG XQXVXDOWKLUVWRQDZDNHQLQJHWF(DFKDOGHK\GHVKRZVDFKDUDFWHULVWLFUHVSRQVH FRQFHQWUDWLRQ UHODWLRQVKLS ZLWK LQFUHDVHG DLUIORZ UHVLVWDQFH DQG UHVSLUDWRU\ IXQFWLRQ

2UJDQLF DLU SROOXWDQWV GDPDJH SRO\PHU VWUXFWXUHV FDXVLQJ ORVV RI PHFKDQLFDO SURSHUWLHVVXFKDVWHQVLOHVWUHQJWKLPSDFWVWUHQJWKHWF(ODVWRPHUVDOVRORVHVRPH RIWKHLULPSRUWDQWPHFKDQLFDOSURSHUWLHVRZLQJWRWKHEUHDNDJHRI&&FKDLQV $OGHK\GHV VXFK IRUPDOGHK\GH DFUROHLQ DFHWDOGHK\GH QEXWDUDOGHK\GH IXUIXUDOGHK\GHHWFUHDFWGLUHFWO\ZLWKIUHHDPLQRJURXSVRISURWHLQVDQGSURGXFH K\SHUVHQVLWLYLW\LQVRPHSHUVRQV7KHLUULWDQWDFWLRQRIIRUPDOGHK\GHRFFXUVLQ ±SSPOHYHOVDQGWKDWRIDFUROHLQFURWRQDOGHK\GHDWPXFKORZHUOHYHOV7KH LUULWDWLRQ FRQVLVWV RI LWFKLQJ RI H\HV GU\ DQG VRUH WKURDWV GLVWXUEHG VOHHS DQG XQXVXDOWKLUVWRQDZDNHQLQJHWF(DFKDOGHK\GHVKRZVDFKDUDFWHULVWLFUHVSRQVH FRQFHQWUDWLRQ UHODWLRQVKLS ZLWK LQFUHDVHG DLUIORZ UHVLVWDQFH DQG UHVSLUDWRU\ IXQFWLRQ

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



7UHHVEHORQJLQJWRFRQLIHUDHP\VWDFHDDQGJHQXVXWHUXVIDPLOLHVHPLWKXJH TXDQWLWLHVRIK\GURFDUERQV$QLPDOVEHOFKRXW ±PLOOLRQWRQVRIPHWKDQHLQWR WKHDWPRVSKHUHHYHU\\HDU7KHDQQXDOK\GURFDUERQEXUGHQRQWKHHQYLURQPHQWLV DERXWîWRQV7KHVHK\GURFDUERQVLQJHQHUDODUHUHIHUUHGDVYRODWLOHRUJDQLF FRPSRXQGV 92&V 

7UHHVEHORQJLQJWRFRQLIHUDHP\VWDFHDDQGJHQXVXWHUXVIDPLOLHVHPLWKXJH TXDQWLWLHVRIK\GURFDUERQV$QLPDOVEHOFKRXW ±PLOOLRQWRQVRIPHWKDQHLQWR WKHDWPRVSKHUHHYHU\\HDU7KHDQQXDOK\GURFDUERQEXUGHQRQWKHHQYLURQPHQWLV DERXWîWRQV7KHVHK\GURFDUERQVLQJHQHUDODUHUHIHUUHGDVYRODWLOHRUJDQLF FRPSRXQGV 92&V 

 (IIHFWRI2UJDQLFVRQ+XPDQV

 (IIHFWRI2UJDQLFVRQ+XPDQV

,WLVYHU\GLIILFXOWWRHYDOXDWHWKHHIIHFWRIK\GURFDUERQVDQGRUJDQLFVRQKXPDQ KHDOWKRZLQJWRWKHLUODUJHQXPEHUVDQGYDU\LQJTXDQWLWLHV$OLSKDWLFK\GURFDUERQV LQJHQHUDOH[KLELWFDUFLQRJHQLFHIIHFWVLQ ±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

,WLVYHU\GLIILFXOWWRHYDOXDWHWKHHIIHFWRIK\GURFDUERQVDQGRUJDQLFVRQKXPDQ KHDOWKRZLQJWRWKHLUODUJHQXPEHUVDQGYDU\LQJTXDQWLWLHV$OLSKDWLFK\GURFDUERQV LQJHQHUDOH[KLELWFDUFLQRJHQLFHIIHFWVLQ ±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

(IIHFWRQ3ODQWV

(IIHFWRQ3ODQWV

+\GURFDUERQVDQGRUJDQLFFRPSRXQGVDUHLQMXULRXVWRSODQWVDQGFDXVHVFKORURVLV 3KRWRFKHPLFDOR[LGDQWVDQGR]RQHLQGXFHOLJKWIOHFNVRUVWLSSOHVRQWKHOHDIVXUIDFHV WKHUHE\LQKLELWLQJWKHSKRWRV\QWKHWLFDFWLYLW\(WK\OHQHHYHQDWSSPFDXVHVDGYHUVH HIIHFWVRQYHJHWDWLRQ>@$FHW\OHQHDQGSURS\OHQHDUHDOVRH[WUHPHO\WR[LFWRZDUGV SODQWVDWDQGSSP

+\GURFDUERQVDQGRUJDQLFFRPSRXQGVDUHLQMXULRXVWRSODQWVDQGFDXVHVFKORURVLV 3KRWRFKHPLFDOR[LGDQWVDQGR]RQHLQGXFHOLJKWIOHFNVRUVWLSSOHVRQWKHOHDIVXUIDFHV WKHUHE\LQKLELWLQJWKHSKRWRV\QWKHWLFDFWLYLW\(WK\OHQHHYHQDWSSPFDXVHVDGYHUVH HIIHFWVRQYHJHWDWLRQ>@$FHW\OHQHDQGSURS\OHQHDUHDOVRH[WUHPHO\WR[LFWRZDUGV SODQWVDWDQGSSP

(IIHFWRQ0DWHULDOV

(IIHFWRQ0DWHULDOV

2UJDQLF DLU SROOXWDQWV GDPDJH SRO\PHU VWUXFWXUHV FDXVLQJ ORVV RI PHFKDQLFDO SURSHUWLHVVXFKDVWHQVLOHVWUHQJWKLPSDFWVWUHQJWKHWF(ODVWRPHUVDOVRORVHVRPH RIWKHLULPSRUWDQWPHFKDQLFDOSURSHUWLHVRZLQJWRWKHEUHDNDJHRI&&FKDLQV $OGHK\GHV VXFK IRUPDOGHK\GH DFUROHLQ DFHWDOGHK\GH QEXWDUDOGHK\GH IXUIXUDOGHK\GHHWFUHDFWGLUHFWO\ZLWKIUHHDPLQRJURXSVRISURWHLQVDQGSURGXFH K\SHUVHQVLWLYLW\LQVRPHSHUVRQV7KHLUULWDQWDFWLRQRIIRUPDOGHK\GHRFFXUVLQ ±SSPOHYHOVDQGWKDWRIDFUROHLQFURWRQDOGHK\GHDWPXFKORZHUOHYHOV7KH LUULWDWLRQ FRQVLVWV RI LWFKLQJ RI H\HV GU\ DQG VRUH WKURDWV GLVWXUEHG VOHHS DQG XQXVXDOWKLUVWRQDZDNHQLQJHWF(DFKDOGHK\GHVKRZVDFKDUDFWHULVWLFUHVSRQVH FRQFHQWUDWLRQ UHODWLRQVKLS ZLWK LQFUHDVHG DLUIORZ UHVLVWDQFH DQG UHVSLUDWRU\ IXQFWLRQ

2UJDQLF DLU SROOXWDQWV GDPDJH SRO\PHU VWUXFWXUHV FDXVLQJ ORVV RI PHFKDQLFDO SURSHUWLHVVXFKDVWHQVLOHVWUHQJWKLPSDFWVWUHQJWKHWF(ODVWRPHUVDOVRORVHVRPH RIWKHLULPSRUWDQWPHFKDQLFDOSURSHUWLHVRZLQJWRWKHEUHDNDJHRI&&FKDLQV $OGHK\GHV VXFK IRUPDOGHK\GH DFUROHLQ DFHWDOGHK\GH QEXWDUDOGHK\GH IXUIXUDOGHK\GHHWFUHDFWGLUHFWO\ZLWKIUHHDPLQRJURXSVRISURWHLQVDQGSURGXFH K\SHUVHQVLWLYLW\LQVRPHSHUVRQV7KHLUULWDQWDFWLRQRIIRUPDOGHK\GHRFFXUVLQ ±SSPOHYHOVDQGWKDWRIDFUROHLQFURWRQDOGHK\GHDWPXFKORZHUOHYHOV7KH LUULWDWLRQ FRQVLVWV RI LWFKLQJ RI H\HV GU\ DQG VRUH WKURDWV GLVWXUEHG VOHHS DQG XQXVXDOWKLUVWRQDZDNHQLQJHWF(DFKDOGHK\GHVKRZVDFKDUDFWHULVWLFUHVSRQVH FRQFHQWUDWLRQ UHODWLRQVKLS ZLWK LQFUHDVHG DLUIORZ UHVLVWDQFH DQG UHVSLUDWRU\ IXQFWLRQ

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

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

 +@

 +@ 7KUHVKROGOLPLWYDOXH7/9 IRUPD[LPXPH[SRVXUHRI+6LVSSPIRU KRXUVGDLO\+RZHYHUWKLVYDOXHVHHPVWREHWRRKLJKEHFDXVHH\HLUULWDWLRQRFFXUV DWWKLVOHYHO

 (IIHFW RQ 9HJHWDWLRQ

 (IIHFW RQ 9HJHWDWLRQ

+\GURJHQVXOSKLGHFDXVHVQHFURVLVDQGGHDWKRILPPDWXUHWLVVXHVLQSUHIHUHQFHWR PDWXUH WLVVXHV 7\SLFDO LQMXULHV DUH YLVLEOH RQ WKH JURZLQJ WLS RI WKH SODQWV )RUWXQDWHO\WR[LFOHYHOVDUHZHOODERYHDPELHQWFRQFHQWUDWLRQV&KURQLFDQGJURZWK HIIHFWVDUHQRWZHOOUHFRUGHGEXWFHUWDLQO\DSRVVLELOLW\

+\GURJHQVXOSKLGHFDXVHVQHFURVLVDQGGHDWKRILPPDWXUHWLVVXHVLQSUHIHUHQFHWR PDWXUH WLVVXHV 7\SLFDO LQMXULHV DUH YLVLEOH RQ WKH JURZLQJ WLS RI WKH SODQWV )RUWXQDWHO\WR[LFOHYHOVDUHZHOODERYHDPELHQWFRQFHQWUDWLRQV&KURQLFDQGJURZWK HIIHFWVDUHQRWZHOOUHFRUGHGEXWFHUWDLQO\DSRVVLELOLW\

(IIHFWRQ0DWHULDOV

(IIHFWRQ0DWHULDOV

,QSUHVHQFHRIK\GURJHQVXOSKLGHFRSSHUDQGVLOYHUWDUQLVKUDSLGO\&RSSHUH[SRVHG WR XQSROOXWHG DLU GHYHORSV DQ R[LGH OD\HU DQG UHVLVWV WKH HIIHFWV RI +6 6LOYHU WDUQLVKHVRQO\LQSUHVHQFHRIPRLVWXUHR[\JHQDQG+66XOSKLGHFRDWLQJIRUPHG RQRSHQFRSSHUDQGVLOYHUHOHFWULFDOFRQWDFWVLQFUHDVHWKHLUUHVLVWDQFHDFURVVWKHVH FRQWDFWV >@

,QSUHVHQFHRIK\GURJHQVXOSKLGHFRSSHUDQGVLOYHUWDUQLVKUDSLGO\&RSSHUH[SRVHG WR XQSROOXWHG DLU GHYHORSV DQ R[LGH OD\HU DQG UHVLVWV WKH HIIHFWV RI +6 6LOYHU WDUQLVKHVRQO\LQSUHVHQFHRIPRLVWXUHR[\JHQDQG+66XOSKLGHFRDWLQJIRUPHG RQRSHQFRSSHUDQGVLOYHUHOHFWULFDOFRQWDFWVLQFUHDVHWKHLUUHVLVWDQFHDFURVVWKHVH FRQWDFWV >@

 $0021,$

 $0021,$

$PPRQLD LV D SXQJHQW JDV ,W LV XVHG IRU WKH V\QWKHVLV RI DPPRQLXP QLWUDWH SODVWLFVH[SORVLYHVG\HVGUXJVDQGDOVRDVDUHIULJHUDQW%LRORJLFDOGHJUDGDWLRQ RISURWHLQVRQVRLOVXUIDFHVRFFXUVDWDVLJQLILFDQWVFDOH,QGXVWULDOHPLVVLRQVRI DPPRQLD DUH QHJOLJLEOH FRPSDUHG WR WKLV QDWXUDO HPLVVLRQ $WPRVSKHULF FRQFHQWUDWLRQRIDPPRQLDUDQJHVIURP ± SSP$PPRQLDKDVDJUHDWDIILQLW\ IRUZDWHUDQGPHWDOLRQV

$PPRQLD LV D SXQJHQW JDV ,W LV XVHG IRU WKH V\QWKHVLV RI DPPRQLXP QLWUDWH SODVWLFVH[SORVLYHVG\HVGUXJVDQGDOVRDVDUHIULJHUDQW%LRORJLFDOGHJUDGDWLRQ RISURWHLQVRQVRLOVXUIDFHVRFFXUVDWDVLJQLILFDQWVFDOH,QGXVWULDOHPLVVLRQVRI DPPRQLD DUH QHJOLJLEOH FRPSDUHG WR WKLV QDWXUDO HPLVVLRQ $WPRVSKHULF FRQFHQWUDWLRQRIDPPRQLDUDQJHVIURP ± SSP$PPRQLDKDVDJUHDWDIILQLW\ IRUZDWHUDQGPHWDOLRQV

1+  +  2 1+   2+ 

1+  +  2 1+   2+ 



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±

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



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±



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



µ3ORPEGHVIRVVHV¶LQ3DULVDVWKHHIIHFWVUHVHPEOHGOHDGSRLVRQLQJ(YHU\\HDULQ ,QGLDVHYHUDOGHDWKVDUHUHSRUWHGDPRQJVHZHUDJHZRUNHUV,QUXUDO,QGLDJUDQDULHV EHFRPHGHDWKWUDSVRZLQJWRWKHODUJHDPRXQWRIK\GURJHQVXOSKLGHDFFXPXODWHG WKHUH,Q3HXUWR5LFR0H[LFRGXULQJ1RYHPEHU±DQDFFLGHQWDOUHOHDVH RIK\GURJHQVXOSKLGHFDXVHGGHDWKVDQGKRVSLWDOL]DWLRQV>@ 7KUHVKROGOLPLWYDOXH7/9 IRUPD[LPXPH[SRVXUHRI+6LVSSPIRU KRXUVGDLO\+RZHYHUWKLVYDOXHVHHPVWREHWRRKLJKEHFDXVHH\HLUULWDWLRQRFFXUV DWWKLVOHYHO

µ3ORPEGHVIRVVHV¶LQ3DULVDVWKHHIIHFWVUHVHPEOHGOHDGSRLVRQLQJ(YHU\\HDULQ ,QGLDVHYHUDOGHDWKVDUHUHSRUWHGDPRQJVHZHUDJHZRUNHUV,QUXUDO,QGLDJUDQDULHV EHFRPHGHDWKWUDSVRZLQJWRWKHODUJHDPRXQWRIK\GURJHQVXOSKLGHDFFXPXODWHG WKHUH,Q3HXUWR5LFR0H[LFRGXULQJ1RYHPEHU±DQDFFLGHQWDOUHOHDVH RIK\GURJHQVXOSKLGHFDXVHGGHDWKVDQGKRVSLWDOL]DWLRQV>@ 7KUHVKROGOLPLWYDOXH7/9 IRUPD[LPXPH[SRVXUHRI+6LVSSPIRU KRXUVGDLO\+RZHYHUWKLVYDOXHVHHPVWREHWRRKLJKEHFDXVHH\HLUULWDWLRQRFFXUV DWWKLVOHYHO

 (IIHFW RQ 9HJHWDWLRQ

 (IIHFW RQ 9HJHWDWLRQ

+\GURJHQVXOSKLGHFDXVHVQHFURVLVDQGGHDWKRILPPDWXUHWLVVXHVLQSUHIHUHQFHWR PDWXUH WLVVXHV 7\SLFDO LQMXULHV DUH YLVLEOH RQ WKH JURZLQJ WLS RI WKH SODQWV )RUWXQDWHO\WR[LFOHYHOVDUHZHOODERYHDPELHQWFRQFHQWUDWLRQV&KURQLFDQGJURZWK HIIHFWVDUHQRWZHOOUHFRUGHGEXWFHUWDLQO\DSRVVLELOLW\

+\GURJHQVXOSKLGHFDXVHVQHFURVLVDQGGHDWKRILPPDWXUHWLVVXHVLQSUHIHUHQFHWR PDWXUH WLVVXHV 7\SLFDO LQMXULHV DUH YLVLEOH RQ WKH JURZLQJ WLS RI WKH SODQWV )RUWXQDWHO\WR[LFOHYHOVDUHZHOODERYHDPELHQWFRQFHQWUDWLRQV&KURQLFDQGJURZWK HIIHFWVDUHQRWZHOOUHFRUGHGEXWFHUWDLQO\DSRVVLELOLW\

(IIHFWRQ0DWHULDOV

(IIHFWRQ0DWHULDOV

,QSUHVHQFHRIK\GURJHQVXOSKLGHFRSSHUDQGVLOYHUWDUQLVKUDSLGO\&RSSHUH[SRVHG WR XQSROOXWHG DLU GHYHORSV DQ R[LGH OD\HU DQG UHVLVWV WKH HIIHFWV RI +6 6LOYHU WDUQLVKHVRQO\LQSUHVHQFHRIPRLVWXUHR[\JHQDQG+66XOSKLGHFRDWLQJIRUPHG RQRSHQFRSSHUDQGVLOYHUHOHFWULFDOFRQWDFWVLQFUHDVHWKHLUUHVLVWDQFHDFURVVWKHVH FRQWDFWV >@

,QSUHVHQFHRIK\GURJHQVXOSKLGHFRSSHUDQGVLOYHUWDUQLVKUDSLGO\&RSSHUH[SRVHG WR XQSROOXWHG DLU GHYHORSV DQ R[LGH OD\HU DQG UHVLVWV WKH HIIHFWV RI +6 6LOYHU WDUQLVKHVRQO\LQSUHVHQFHRIPRLVWXUHR[\JHQDQG+66XOSKLGHFRDWLQJIRUPHG RQRSHQFRSSHUDQGVLOYHUHOHFWULFDOFRQWDFWVLQFUHDVHWKHLUUHVLVWDQFHDFURVVWKHVH FRQWDFWV >@

 $0021,$

 $0021,$

$PPRQLD LV D SXQJHQW JDV ,W LV XVHG IRU WKH V\QWKHVLV RI DPPRQLXP QLWUDWH SODVWLFVH[SORVLYHVG\HVGUXJVDQGDOVRDVDUHIULJHUDQW%LRORJLFDOGHJUDGDWLRQ RISURWHLQVRQVRLOVXUIDFHVRFFXUVDWDVLJQLILFDQWVFDOH,QGXVWULDOHPLVVLRQVRI DPPRQLD DUH QHJOLJLEOH FRPSDUHG WR WKLV QDWXUDO HPLVVLRQ $WPRVSKHULF FRQFHQWUDWLRQRIDPPRQLDUDQJHVIURP ± SSP$PPRQLDKDVDJUHDWDIILQLW\ IRUZDWHUDQGPHWDOLRQV

$PPRQLD LV D SXQJHQW JDV ,W LV XVHG IRU WKH V\QWKHVLV RI DPPRQLXP QLWUDWH SODVWLFVH[SORVLYHVG\HVGUXJVDQGDOVRDVDUHIULJHUDQW%LRORJLFDOGHJUDGDWLRQ RISURWHLQVRQVRLOVXUIDFHVRFFXUVDWDVLJQLILFDQWVFDOH,QGXVWULDOHPLVVLRQVRI DPPRQLD DUH QHJOLJLEOH FRPSDUHG WR WKLV QDWXUDO HPLVVLRQ $WPRVSKHULF FRQFHQWUDWLRQRIDPPRQLDUDQJHVIURP ± SSP$PPRQLDKDVDJUHDWDIILQLW\ IRUZDWHUDQGPHWDOLRQV

1+  +  2 1+   2+ 

1+  +  2 1+   2+ 



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±



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±

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

NP EHIRUH LW LV FRQYHUWHG $PPRQLXP LRQ LV UHPRYHG IURP WKH DWPRVSKHUH E\ GLVVROXWLRQLQDTXHRXVDHURVROVRUE\DGVRUSWLRQRQWRSDUWLFOHVRUE\UHDFWLQJZLWK VXOSKXUGLR[LGH7KHUHVHHPVWREHDQLQWLPDWHUHODWLRQVKLSEHWZHHQDPPRQLDDQG VXOSKXUGLR[LGHIOX[HVLQWKHDWPRVSKHUH

NP EHIRUH LW LV FRQYHUWHG $PPRQLXP LRQ LV UHPRYHG IURP WKH DWPRVSKHUH E\ GLVVROXWLRQLQDTXHRXVDHURVROVRUE\DGVRUSWLRQRQWRSDUWLFOHVRUE\UHDFWLQJZLWK VXOSKXUGLR[LGH7KHUHVHHPVWREHDQLQWLPDWHUHODWLRQVKLSEHWZHHQDPPRQLDDQG VXOSKXUGLR[LGHIOX[HVLQWKHDWPRVSKHUH

(IIHFWRQ+XPDQ+HDOWK

(IIHFWRQ+XPDQ+HDOWK

6PDOOTXDQWLWLHVRIDPPRQLDSUHVHQWLQWKHDLUDUHQRWQRUPDOO\DKHDOWKKD]DUG,Q IDFW WLQ\ SXIIV RI DPPRQLD DUH XVHG DV PHGLFDWLRQ LQ WKH WUHDWPHQW RI FROG $PPRQLDUHDFWVZLWKWKHPRLVWVXUIDFHRIFRUQHDDQGWKURDWWRIRUPDPPRQLXP K\GUR[LGH,WFDXVHVFKHPLFDOEXUQLQWKHH\HVEXWLQWKHWKURDWLPPHGLDWHEXIIHULQJ RI WKH OD\HUV HQVXUHV WKDW YHU\ OLWWOH DPPRQLD DFWXDOO\ UHDFKHV OXQJV %HWZHHQ  ±SSPRIDPPRQLDLUULWDWLYHHIIHFWVEHFRPHVDSSDUHQW3K\VLRORJLFDOHIIHFWV VXFK DV LQFUHDVHG DPPRQLXP LRQV DQG LQFUHDVH RI XUHD LQ WKH EORRGVWUHDP DUH REVHUYHGHYHQDWSSPOHYHOV7KH7/9IRUDPPRQLDLVSSPIRUKRXUVSHU GD\H[SRVXUH

6PDOOTXDQWLWLHVRIDPPRQLDSUHVHQWLQWKHDLUDUHQRWQRUPDOO\DKHDOWKKD]DUG,Q IDFW WLQ\ SXIIV RI DPPRQLD DUH XVHG DV PHGLFDWLRQ LQ WKH WUHDWPHQW RI FROG $PPRQLDUHDFWVZLWKWKHPRLVWVXUIDFHRIFRUQHDDQGWKURDWWRIRUPDPPRQLXP K\GUR[LGH,WFDXVHVFKHPLFDOEXUQLQWKHH\HVEXWLQWKHWKURDWLPPHGLDWHEXIIHULQJ RI WKH OD\HUV HQVXUHV WKDW YHU\ OLWWOH DPPRQLD DFWXDOO\ UHDFKHV OXQJV %HWZHHQ  ±SSPRIDPPRQLDLUULWDWLYHHIIHFWVEHFRPHVDSSDUHQW3K\VLRORJLFDOHIIHFWV VXFK DV LQFUHDVHG DPPRQLXP LRQV DQG LQFUHDVH RI XUHD LQ WKH EORRGVWUHDP DUH REVHUYHGHYHQDWSSPOHYHOV7KH7/9IRUDPPRQLDLVSSPIRUKRXUVSHU GD\H[SRVXUH

(IIHFWRQ3ODQWV

(IIHFWRQ3ODQWV

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

 1,752*(1 2;,'(6

 1,752*(1 2;,'(6

1LWURJHQ R[LGHV DUH SURGXFHG LQ QDWXUDO VWUDWRVSKHULF UHJLRQ E\ WKH DFWLRQ RI XOWUDYLROHWDQGFRVPLFUD\V$QWKURSRJHQLFVRXUFHVRI12[LQFOXGHFRPEXVWLRQRI FRDO RLO QDWXUDO JDV JDVROHQH NHURVHQH HWF ,PSRUWDQW QLWURJHQ R[LGHV LQ WKH

1LWURJHQ R[LGHV DUH SURGXFHG LQ QDWXUDO VWUDWRVSKHULF UHJLRQ E\ WKH DFWLRQ RI XOWUDYLROHWDQGFRVPLFUD\V$QWKURSRJHQLFVRXUFHVRI12[LQFOXGHFRPEXVWLRQRI FRDO RLO QDWXUDO JDV JDVROHQH NHURVHQH HWF ,PSRUWDQW QLWURJHQ R[LGHV LQ WKH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

NP EHIRUH LW LV FRQYHUWHG $PPRQLXP LRQ LV UHPRYHG IURP WKH DWPRVSKHUH E\ GLVVROXWLRQLQDTXHRXVDHURVROVRUE\DGVRUSWLRQRQWRSDUWLFOHVRUE\UHDFWLQJZLWK VXOSKXUGLR[LGH7KHUHVHHPVWREHDQLQWLPDWHUHODWLRQVKLSEHWZHHQDPPRQLDDQG VXOSKXUGLR[LGHIOX[HVLQWKHDWPRVSKHUH

NP EHIRUH LW LV FRQYHUWHG $PPRQLXP LRQ LV UHPRYHG IURP WKH DWPRVSKHUH E\ GLVVROXWLRQLQDTXHRXVDHURVROVRUE\DGVRUSWLRQRQWRSDUWLFOHVRUE\UHDFWLQJZLWK VXOSKXUGLR[LGH7KHUHVHHPVWREHDQLQWLPDWHUHODWLRQVKLSEHWZHHQDPPRQLDDQG VXOSKXUGLR[LGHIOX[HVLQWKHDWPRVSKHUH

(IIHFWRQ+XPDQ+HDOWK

(IIHFWRQ+XPDQ+HDOWK

6PDOOTXDQWLWLHVRIDPPRQLDSUHVHQWLQWKHDLUDUHQRWQRUPDOO\DKHDOWKKD]DUG,Q IDFW WLQ\ SXIIV RI DPPRQLD DUH XVHG DV PHGLFDWLRQ LQ WKH WUHDWPHQW RI FROG $PPRQLDUHDFWVZLWKWKHPRLVWVXUIDFHRIFRUQHDDQGWKURDWWRIRUPDPPRQLXP K\GUR[LGH,WFDXVHVFKHPLFDOEXUQLQWKHH\HVEXWLQWKHWKURDWLPPHGLDWHEXIIHULQJ RI WKH OD\HUV HQVXUHV WKDW YHU\ OLWWOH DPPRQLD DFWXDOO\ UHDFKHV OXQJV %HWZHHQ  ±SSPRIDPPRQLDLUULWDWLYHHIIHFWVEHFRPHVDSSDUHQW3K\VLRORJLFDOHIIHFWV VXFK DV LQFUHDVHG DPPRQLXP LRQV DQG LQFUHDVH RI XUHD LQ WKH EORRGVWUHDP DUH REVHUYHGHYHQDWSSPOHYHOV7KH7/9IRUDPPRQLDLVSSPIRUKRXUVSHU GD\H[SRVXUH

6PDOOTXDQWLWLHVRIDPPRQLDSUHVHQWLQWKHDLUDUHQRWQRUPDOO\DKHDOWKKD]DUG,Q IDFW WLQ\ SXIIV RI DPPRQLD DUH XVHG DV PHGLFDWLRQ LQ WKH WUHDWPHQW RI FROG $PPRQLDUHDFWVZLWKWKHPRLVWVXUIDFHRIFRUQHDDQGWKURDWWRIRUPDPPRQLXP K\GUR[LGH,WFDXVHVFKHPLFDOEXUQLQWKHH\HVEXWLQWKHWKURDWLPPHGLDWHEXIIHULQJ RI WKH OD\HUV HQVXUHV WKDW YHU\ OLWWOH DPPRQLD DFWXDOO\ UHDFKHV OXQJV %HWZHHQ  ±SSPRIDPPRQLDLUULWDWLYHHIIHFWVEHFRPHVDSSDUHQW3K\VLRORJLFDOHIIHFWV VXFK DV LQFUHDVHG DPPRQLXP LRQV DQG LQFUHDVH RI XUHD LQ WKH EORRGVWUHDP DUH REVHUYHGHYHQDWSSPOHYHOV7KH7/9IRUDPPRQLDLVSSPIRUKRXUVSHU GD\H[SRVXUH

(IIHFWRQ3ODQWV

(IIHFWRQ3ODQWV

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

 1,752*(1 2;,'(6

 1,752*(1 2;,'(6

1LWURJHQ R[LGHV DUH SURGXFHG LQ QDWXUDO VWUDWRVSKHULF UHJLRQ E\ WKH DFWLRQ RI XOWUDYLROHWDQGFRVPLFUD\V$QWKURSRJHQLFVRXUFHVRI12[LQFOXGHFRPEXVWLRQRI FRDO RLO QDWXUDO JDV JDVROHQH NHURVHQH HWF ,PSRUWDQW QLWURJHQ R[LGHV LQ WKH

1LWURJHQ R[LGHV DUH SURGXFHG LQ QDWXUDO VWUDWRVSKHULF UHJLRQ E\ WKH DFWLRQ RI XOWUDYLROHWDQGFRVPLFUD\V$QWKURSRJHQLFVRXUFHVRI12[LQFOXGHFRPEXVWLRQRI FRDO RLO QDWXUDO JDV JDVROHQH NHURVHQH HWF ,PSRUWDQW QLWURJHQ R[LGHV LQ WKH

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



HQYLURQPHQWDUHQLWURXVR[LGH12 QLWULFR[LGH12 QLWURJHQGLR[LGH12  GLQLWURJHQWULR[LGH12 DQGQLWURJHQSHQWR[LGH0DMRUSROOXWDQWVDPRQJWKHVH DUH12DQG12 7KHHOHFWURQLFFRQILJXUDWLRQRIQLWURJHQSHUPLWVDZLGHUDQJHRIR[LGDWLRQ UHGXFWLRQUHDFWLRQV7KHUHGR[SRWHQWLDOVRIWKHVHFRPSRXQGVDOVRYDULHVRYHUD ZLGHUDQJH%LRORJLFDOLQWHUFRQYHUVLRQRIQLWURJHQR[LGHVDQGDPPRQLDLQSUHVHQFH RIPLFUREHVHQ]\PHVVRLOVDQGSODQWSURWHLQVLVDQLPSRUWDQWIDFWRULQWKHQLWURJHQ F\FOHV)LJXUHVKRZVWKHQLWURJHQF\FOH HNO2

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ

HQYLURQPHQWDUHQLWURXVR[LGH12 QLWULFR[LGH12 QLWURJHQGLR[LGH12  GLQLWURJHQWULR[LGH12 DQGQLWURJHQSHQWR[LGH0DMRUSROOXWDQWVDPRQJWKHVH DUH12DQG12 7KHHOHFWURQLFFRQILJXUDWLRQRIQLWURJHQSHUPLWVDZLGHUDQJHRIR[LGDWLRQ UHGXFWLRQUHDFWLRQV7KHUHGR[SRWHQWLDOVRIWKHVHFRPSRXQGVDOVRYDULHVRYHUD ZLGHUDQJH%LRORJLFDOLQWHUFRQYHUVLRQRIQLWURJHQR[LGHVDQGDPPRQLDLQSUHVHQFH RIPLFUREHVHQ]\PHVVRLOVDQGSODQWSURWHLQVLVDQLPSRUWDQWIDFWRULQWKHQLWURJHQ F\FOHV)LJXUHVKRZVWKHQLWURJHQF\FOH

PAN

HO2NO2

HNO2

•RO2 OH

H2 O

Lightning O3

•HO

NO

HNO3

NO2

Combustion

Lightning

Cloud & Aerosol NO3–

O3

•HO

NO

Combustion

+NO2

H2O

Soil

N2O5

NO3 Wet deposition

Wet deposition

Dry deposition Soil

Soil

Cloud & Aerosol NO3–

+NO2

N2O5

NO3

HNO3

NO2

O3

Dry deposition Soil

H2 O

H2O

O3

PAN

HO2NO2

•RO2 OH



Soil

Soil

)LJ1LWURJHQF\FOH

)LJ1LWURJHQF\FOH

*OREDOHPLVVLRQRI12[LVRIWKHRUGHURIîWRQV,WLVDOPRVWHTXDOWR JOREDODPPRQLDHPLVVLRQV7KHFRPSRVLWLRQRIQLWURJHQR[LGHVYDULHVGHSHQGLQJ XSRQWKHWHPSHUDWXUHUDGLDWLRQSUHVHQFHRIRWKHUPROHFXOHVDWRPVRUUDGLFDOV DQGDOWLWXGH7KHUHDUHYDULRXVVFDYHQJLQJPHFKDQLVPVIRU12DQG12LQFOXGLQJ GU\DQGZHWGHSRVLWLRQ,QWHUFRQYHUVLRQRIQLWURJHQR[LGHVOHDGLQJWRWKHLUUHPRYDO LVVKRZQLQ)LJ $QQXDOGHSRVLWLRQUDWHVRIQLWUDWHDQGQLWULFDFLGLVDERXWîWRQVSHU \HDURXWRIZKLFKGU\GHSRVLWLRQLVDERXWîWRQV7KHUHODWLYHGHSRVLWLRQ UDWHVDUHJLYHQE\ +12 | 12 ! 1+  ! 1+   ! 12   ! 12 ! 1  2 

*OREDOHPLVVLRQRI12[LVRIWKHRUGHURIîWRQV,WLVDOPRVWHTXDOWR JOREDODPPRQLDHPLVVLRQV7KHFRPSRVLWLRQRIQLWURJHQR[LGHVYDULHVGHSHQGLQJ XSRQWKHWHPSHUDWXUHUDGLDWLRQSUHVHQFHRIRWKHUPROHFXOHVDWRPVRUUDGLFDOV DQGDOWLWXGH7KHUHDUHYDULRXVVFDYHQJLQJPHFKDQLVPVIRU12DQG12LQFOXGLQJ GU\DQGZHWGHSRVLWLRQ,QWHUFRQYHUVLRQRIQLWURJHQR[LGHVOHDGLQJWRWKHLUUHPRYDO LVVKRZQLQ)LJ $QQXDOGHSRVLWLRQUDWHVRIQLWUDWHDQGQLWULFDFLGLVDERXWîWRQVSHU \HDURXWRIZKLFKGU\GHSRVLWLRQLVDERXWîWRQV7KHUHODWLYHGHSRVLWLRQ UDWHVDUHJLYHQE\ +12 | 12 ! 1+  ! 1+   ! 12   ! 12 ! 1  2 

(IIHFWRQ+XPDQ+HDOWK

(IIHFWRQ+XPDQ+HDOWK

1LWULFR[LGHLVQRWVWDEOHLQWKHDWPRVSKHUHRZLQJWRLWVUDSLGR[LGDWLRQWRQLWURJHQ GLR[LGH,WLVDOVRELRORJLFDOO\LQHUWDQGGRHVQRWSRVVHVVLUULWDWLQJSURSHUWLHV7KH RQO\ NQRZQ WR[LF DFWLRQ RI QLWULF R[LGH KDV EHHQ DWWULEXWHG WRWKH IRUPDWLRQ RI QLWURVRKRHPRJORELQUHVXOWLQJLQSURJUHVVLYHGHSUHVVLRQRIFHQWUDOQHUYRXVV\VWHP $VSK\[LDOFRQYXOVLRQVDQGVXGGHQFHQWUDOSDUDO\VLVRFFXULILQKDOHGLQVXIILFLHQWO\ ODUJHTXDQWLWLHV12LVWLPHVOHVVWR[LFWKDQ127KHUHDUHQRUHSRUWHGFKURQLF WR[LFLW\FDVHVRI12

1LWULFR[LGHLVQRWVWDEOHLQWKHDWPRVSKHUHRZLQJWRLWVUDSLGR[LGDWLRQWRQLWURJHQ GLR[LGH,WLVDOVRELRORJLFDOO\LQHUWDQGGRHVQRWSRVVHVVLUULWDWLQJSURSHUWLHV7KH RQO\ NQRZQ WR[LF DFWLRQ RI QLWULF R[LGH KDV EHHQ DWWULEXWHG WRWKH IRUPDWLRQ RI QLWURVRKRHPRJORELQUHVXOWLQJLQSURJUHVVLYHGHSUHVVLRQRIFHQWUDOQHUYRXVV\VWHP $VSK\[LDOFRQYXOVLRQVDQGVXGGHQFHQWUDOSDUDO\VLVRFFXULILQKDOHGLQVXIILFLHQWO\ ODUJHTXDQWLWLHV12LVWLPHVOHVVWR[LFWKDQ127KHUHDUHQRUHSRUWHGFKURQLF WR[LFLW\FDVHVRI12

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



HQYLURQPHQWDUHQLWURXVR[LGH12 QLWULFR[LGH12 QLWURJHQGLR[LGH12  GLQLWURJHQWULR[LGH12 DQGQLWURJHQSHQWR[LGH0DMRUSROOXWDQWVDPRQJWKHVH DUH12DQG12 7KHHOHFWURQLFFRQILJXUDWLRQRIQLWURJHQSHUPLWVDZLGHUDQJHRIR[LGDWLRQ UHGXFWLRQUHDFWLRQV7KHUHGR[SRWHQWLDOVRIWKHVHFRPSRXQGVDOVRYDULHVRYHUD ZLGHUDQJH%LRORJLFDOLQWHUFRQYHUVLRQRIQLWURJHQR[LGHVDQGDPPRQLDLQSUHVHQFH RIPLFUREHVHQ]\PHVVRLOVDQGSODQWSURWHLQVLVDQLPSRUWDQWIDFWRULQWKHQLWURJHQ F\FOHV)LJXUHVKRZVWKHQLWURJHQF\FOH HNO2

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ

HQYLURQPHQWDUHQLWURXVR[LGH12 QLWULFR[LGH12 QLWURJHQGLR[LGH12  GLQLWURJHQWULR[LGH12 DQGQLWURJHQSHQWR[LGH0DMRUSROOXWDQWVDPRQJWKHVH DUH12DQG12 7KHHOHFWURQLFFRQILJXUDWLRQRIQLWURJHQSHUPLWVDZLGHUDQJHRIR[LGDWLRQ UHGXFWLRQUHDFWLRQV7KHUHGR[SRWHQWLDOVRIWKHVHFRPSRXQGVDOVRYDULHVRYHUD ZLGHUDQJH%LRORJLFDOLQWHUFRQYHUVLRQRIQLWURJHQR[LGHVDQGDPPRQLDLQSUHVHQFH RIPLFUREHVHQ]\PHVVRLOVDQGSODQWSURWHLQVLVDQLPSRUWDQWIDFWRULQWKHQLWURJHQ F\FOHV)LJXUHVKRZVWKHQLWURJHQF\FOH

PAN

HO2NO2

HNO2

•RO2 OH

H2 O

Lightning O3

•HO

NO

HNO3

NO2

O3 Combustion

H2 O

Lightning O3

•HO

NO

O3 Combustion

Soil

NO3

Soil

H2O

N2O5

Dry deposition Soil

Cloud & Aerosol NO3–

+NO2

N2O5 Wet deposition

HNO3

NO2

H2O

Dry deposition Soil

Cloud & Aerosol NO3–

+NO2 NO3

PAN

HO2NO2

•RO2 OH



Soil

Wet deposition Soil

)LJ1LWURJHQF\FOH

)LJ1LWURJHQF\FOH

*OREDOHPLVVLRQRI12[LVRIWKHRUGHURIîWRQV,WLVDOPRVWHTXDOWR JOREDODPPRQLDHPLVVLRQV7KHFRPSRVLWLRQRIQLWURJHQR[LGHVYDULHVGHSHQGLQJ XSRQWKHWHPSHUDWXUHUDGLDWLRQSUHVHQFHRIRWKHUPROHFXOHVDWRPVRUUDGLFDOV DQGDOWLWXGH7KHUHDUHYDULRXVVFDYHQJLQJPHFKDQLVPVIRU12DQG12LQFOXGLQJ GU\DQGZHWGHSRVLWLRQ,QWHUFRQYHUVLRQRIQLWURJHQR[LGHVOHDGLQJWRWKHLUUHPRYDO LVVKRZQLQ)LJ $QQXDOGHSRVLWLRQUDWHVRIQLWUDWHDQGQLWULFDFLGLVDERXWîWRQVSHU \HDURXWRIZKLFKGU\GHSRVLWLRQLVDERXWîWRQV7KHUHODWLYHGHSRVLWLRQ UDWHVDUHJLYHQE\ +12 | 12 ! 1+  ! 1+   ! 12   ! 12 ! 1  2 

*OREDOHPLVVLRQRI12[LVRIWKHRUGHURIîWRQV,WLVDOPRVWHTXDOWR JOREDODPPRQLDHPLVVLRQV7KHFRPSRVLWLRQRIQLWURJHQR[LGHVYDULHVGHSHQGLQJ XSRQWKHWHPSHUDWXUHUDGLDWLRQSUHVHQFHRIRWKHUPROHFXOHVDWRPVRUUDGLFDOV DQGDOWLWXGH7KHUHDUHYDULRXVVFDYHQJLQJPHFKDQLVPVIRU12DQG12LQFOXGLQJ GU\DQGZHWGHSRVLWLRQ,QWHUFRQYHUVLRQRIQLWURJHQR[LGHVOHDGLQJWRWKHLUUHPRYDO LVVKRZQLQ)LJ $QQXDOGHSRVLWLRQUDWHVRIQLWUDWHDQGQLWULFDFLGLVDERXWîWRQVSHU \HDURXWRIZKLFKGU\GHSRVLWLRQLVDERXWîWRQV7KHUHODWLYHGHSRVLWLRQ UDWHVDUHJLYHQE\ +12 | 12 ! 1+  ! 1+   ! 12   ! 12 ! 1  2 

(IIHFWRQ+XPDQ+HDOWK

(IIHFWRQ+XPDQ+HDOWK

1LWULFR[LGHLVQRWVWDEOHLQWKHDWPRVSKHUHRZLQJWRLWVUDSLGR[LGDWLRQWRQLWURJHQ GLR[LGH,WLVDOVRELRORJLFDOO\LQHUWDQGGRHVQRWSRVVHVVLUULWDWLQJSURSHUWLHV7KH RQO\ NQRZQ WR[LF DFWLRQ RI QLWULF R[LGH KDV EHHQ DWWULEXWHG WRWKH IRUPDWLRQ RI QLWURVRKRHPRJORELQUHVXOWLQJLQSURJUHVVLYHGHSUHVVLRQRIFHQWUDOQHUYRXVV\VWHP $VSK\[LDOFRQYXOVLRQVDQGVXGGHQFHQWUDOSDUDO\VLVRFFXULILQKDOHGLQVXIILFLHQWO\ ODUJHTXDQWLWLHV12LVWLPHVOHVVWR[LFWKDQ127KHUHDUHQRUHSRUWHGFKURQLF WR[LFLW\FDVHVRI12

1LWULFR[LGHLVQRWVWDEOHLQWKHDWPRVSKHUHRZLQJWRLWVUDSLGR[LGDWLRQWRQLWURJHQ GLR[LGH,WLVDOVRELRORJLFDOO\LQHUWDQGGRHVQRWSRVVHVVLUULWDWLQJSURSHUWLHV7KH RQO\ NQRZQ WR[LF DFWLRQ RI QLWULF R[LGH KDV EHHQ DWWULEXWHG WRWKH IRUPDWLRQ RI QLWURVRKRHPRJORELQUHVXOWLQJLQSURJUHVVLYHGHSUHVVLRQRIFHQWUDOQHUYRXVV\VWHP $VSK\[LDOFRQYXOVLRQVDQGVXGGHQFHQWUDOSDUDO\VLVRFFXULILQKDOHGLQVXIILFLHQWO\ ODUJHTXDQWLWLHV12LVWLPHVOHVVWR[LFWKDQ127KHUHDUHQRUHSRUWHGFKURQLF WR[LFLW\FDVHVRI12

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

O

O3

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

O2

NO2

O

O3

NO

NO2

O2

NO2 NO

NO2

HNO2(g)

HNO2(g)

)LJ'U\DQGZHWGHSRVLWLRQRI12[

)LJ'U\DQGZHWGHSRVLWLRQRI12[

&RPSDUHG WR QLWULF R[LGH 12 LV YHU\ VWDEOH DQG H[KLELWV VWURQJ LUULWDWLQJ SURSHUWLHVRQWKHPXFRXVPHPEUDQH([SRVXUHWR12DW ±SSPIRU± PLQXWHVRYHUDSHULRGRI±ZHHNVFDXVHVLQIODPPDWLRQRIOXQJWLVVXH1LWURJHQ SHQWR[LGH SURGXFHG E\ WKH UHDFWLRQ RI QLWURJHQ GLR[LGH DQG R]RQH VHHPV WR EH PRUHWR[LFWKDQ127KHWKUHVKROGOLPLWYDOXHIRU12LVSSP,QKDODWLRQRI 12DW ±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

&RPSDUHG WR QLWULF R[LGH 12 LV YHU\ VWDEOH DQG H[KLELWV VWURQJ LUULWDWLQJ SURSHUWLHVRQWKHPXFRXVPHPEUDQH([SRVXUHWR12DW ±SSPIRU± PLQXWHVRYHUDSHULRGRI±ZHHNVFDXVHVLQIODPPDWLRQRIOXQJWLVVXH1LWURJHQ SHQWR[LGH SURGXFHG E\ WKH UHDFWLRQ RI QLWURJHQ GLR[LGH DQG R]RQH VHHPV WR EH PRUHWR[LFWKDQ127KHWKUHVKROGOLPLWYDOXHIRU12LVSSP,QKDODWLRQRI 12DW ±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

(IIHFWRQ3ODQWV

(IIHFWRQ3ODQWV

12LVKLJKO\LQMXULRXVWRSODQWVDVZHOO&RQWLQXRXVH[SRVXUHWRSSPRI12[ LQKLELWV SODQW JURZWK 1HFURVLV LV VHHQ LQ SODQW OHDYHV H[SRVHG WR  SSP RI 12+LJKHUFRQFHQWUDWLRQVRI12[UHWDUGWKHSKRWRV\QWKHWLFDQGPHWDEROLFDFWLYLW\ ([SRVXUHWR± SSPRI12VXSSUHVVHVYHJHWDWLYHJURZWKE\LQEHDQV DQGWRPDWRHV&XWLFXODUUHVLVWDQFHDJDLQVW12[LVORZHUWKDQWKDWRI62RU2 7KHUHIRUHQLWURJHQR[LGHVHQWHUWKHOHDIWKURXJKWKHHSLGHUPDOOD\HUVWKRXJKWRD OHVVHUH[WHQW>@ 2QFH12HQWHUVWKHSODQWFHOOLWGLVVROYHVLQWKHFHOOXODUIOXLGWRIRUPQLWULF DFLG 1LWULF R[LGH IRUPV QLWURXV DFLG ZKLFK IXUWKHU JHWV R[LGL]HG WR QLWULF DFLG $FXWHLQMXU\RIWHQVKRZVOHVLRQVVLPLODUWR62RQEURDGOHDYHVDW±SSP

12LVKLJKO\LQMXULRXVWRSODQWVDVZHOO&RQWLQXRXVH[SRVXUHWRSSPRI12[ LQKLELWV SODQW JURZWK 1HFURVLV LV VHHQ LQ SODQW OHDYHV H[SRVHG WR  SSP RI 12+LJKHUFRQFHQWUDWLRQVRI12[UHWDUGWKHSKRWRV\QWKHWLFDQGPHWDEROLFDFWLYLW\ ([SRVXUHWR± SSPRI12VXSSUHVVHVYHJHWDWLYHJURZWKE\LQEHDQV DQGWRPDWRHV&XWLFXODUUHVLVWDQFHDJDLQVW12[LVORZHUWKDQWKDWRI62RU2 7KHUHIRUHQLWURJHQR[LGHVHQWHUWKHOHDIWKURXJKWKHHSLGHUPDOOD\HUVWKRXJKWRD OHVVHUH[WHQW>@ 2QFH12HQWHUVWKHSODQWFHOOLWGLVVROYHVLQWKHFHOOXODUIOXLGWRIRUPQLWULF DFLG 1LWULF R[LGH IRUPV QLWURXV DFLG ZKLFK IXUWKHU JHWV R[LGL]HG WR QLWULF DFLG $FXWHLQMXU\RIWHQVKRZVOHVLRQVVLPLODUWR62RQEURDGOHDYHVDW±SSP



 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

O

O3



 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

O2

NO2

O

O3

NO

NO2

O2

NO2 NO

NO2

HNO2(g)

HNO2(g)

)LJ'U\DQGZHWGHSRVLWLRQRI12[

)LJ'U\DQGZHWGHSRVLWLRQRI12[

&RPSDUHG WR QLWULF R[LGH 12 LV YHU\ VWDEOH DQG H[KLELWV VWURQJ LUULWDWLQJ SURSHUWLHVRQWKHPXFRXVPHPEUDQH([SRVXUHWR12DW ±SSPIRU± PLQXWHVRYHUDSHULRGRI±ZHHNVFDXVHVLQIODPPDWLRQRIOXQJWLVVXH1LWURJHQ SHQWR[LGH SURGXFHG E\ WKH UHDFWLRQ RI QLWURJHQ GLR[LGH DQG R]RQH VHHPV WR EH PRUHWR[LFWKDQ127KHWKUHVKROGOLPLWYDOXHIRU12LVSSP,QKDODWLRQRI 12DW ±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

&RPSDUHG WR QLWULF R[LGH 12 LV YHU\ VWDEOH DQG H[KLELWV VWURQJ LUULWDWLQJ SURSHUWLHVRQWKHPXFRXVPHPEUDQH([SRVXUHWR12DW ±SSPIRU± PLQXWHVRYHUDSHULRGRI±ZHHNVFDXVHVLQIODPPDWLRQRIOXQJWLVVXH1LWURJHQ SHQWR[LGH SURGXFHG E\ WKH UHDFWLRQ RI QLWURJHQ GLR[LGH DQG R]RQH VHHPV WR EH PRUHWR[LFWKDQ127KHWKUHVKROGOLPLWYDOXHIRU12LVSSP,QKDODWLRQRI 12DW ±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

(IIHFWRQ3ODQWV

(IIHFWRQ3ODQWV

12LVKLJKO\LQMXULRXVWRSODQWVDVZHOO&RQWLQXRXVH[SRVXUHWRSSPRI12[ LQKLELWV SODQW JURZWK 1HFURVLV LV VHHQ LQ SODQW OHDYHV H[SRVHG WR  SSP RI 12+LJKHUFRQFHQWUDWLRQVRI12[UHWDUGWKHSKRWRV\QWKHWLFDQGPHWDEROLFDFWLYLW\ ([SRVXUHWR± SSPRI12VXSSUHVVHVYHJHWDWLYHJURZWKE\LQEHDQV DQGWRPDWRHV&XWLFXODUUHVLVWDQFHDJDLQVW12[LVORZHUWKDQWKDWRI62RU2 7KHUHIRUHQLWURJHQR[LGHVHQWHUWKHOHDIWKURXJKWKHHSLGHUPDOOD\HUVWKRXJKWRD OHVVHUH[WHQW>@ 2QFH12HQWHUVWKHSODQWFHOOLWGLVVROYHVLQWKHFHOOXODUIOXLGWRIRUPQLWULF DFLG 1LWULF R[LGH IRUPV QLWURXV DFLG ZKLFK IXUWKHU JHWV R[LGL]HG WR QLWULF DFLG $FXWHLQMXU\RIWHQVKRZVOHVLRQVVLPLODUWR62RQEURDGOHDYHVDW±SSP

12LVKLJKO\LQMXULRXVWRSODQWVDVZHOO&RQWLQXRXVH[SRVXUHWRSSPRI12[ LQKLELWV SODQW JURZWK 1HFURVLV LV VHHQ LQ SODQW OHDYHV H[SRVHG WR  SSP RI 12+LJKHUFRQFHQWUDWLRQVRI12[UHWDUGWKHSKRWRV\QWKHWLFDQGPHWDEROLFDFWLYLW\ ([SRVXUHWR± SSPRI12VXSSUHVVHVYHJHWDWLYHJURZWKE\LQEHDQV DQGWRPDWRHV&XWLFXODUUHVLVWDQFHDJDLQVW12[LVORZHUWKDQWKDWRI62RU2 7KHUHIRUHQLWURJHQR[LGHVHQWHUWKHOHDIWKURXJKWKHHSLGHUPDOOD\HUVWKRXJKWRD OHVVHUH[WHQW>@ 2QFH12HQWHUVWKHSODQWFHOOLWGLVVROYHVLQWKHFHOOXODUIOXLGWRIRUPQLWULF DFLG 1LWULF R[LGH IRUPV QLWURXV DFLG ZKLFK IXUWKHU JHWV R[LGL]HG WR QLWULF DFLG $FXWHLQMXU\RIWHQVKRZVOHVLRQVVLPLODUWR62RQEURDGOHDYHVDW±SSP





0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



 )/825,'(6

 )/825,'(6

8QFRPELQHGIOXRULQHLVXQOLNHO\WREHSUHVHQWLQDLUDVLWDYHU\UHDFWLYHJDVDQG GRHVQRWRFFXULQWKHIUHHVWDWH6SHFLILFLQGXVWULDORSHUDWLRQVRUFRPEXVWLRQRI FRDO SURGXFHV IOXRULGHV )OXRULGHV VXFK DV IOXRUVSDU FU\ROLWH DQG KDSDWLWHV DUH XVHG E\ YDULRXV LQGXVWULHV DV UDZ PDWHULDOV RU DV SURFHVV FKHPLFDOV )HUWLOL]HU LQGXVWU\URXWLQHO\SURFHVVHVSKRVSKDWHURFNVZKLFKFRQWDLQDERXW±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

8QFRPELQHGIOXRULQHLVXQOLNHO\WREHSUHVHQWLQDLUDVLWDYHU\UHDFWLYHJDVDQG GRHVQRWRFFXULQWKHIUHHVWDWH6SHFLILFLQGXVWULDORSHUDWLRQVRUFRPEXVWLRQRI FRDO SURGXFHV IOXRULGHV )OXRULGHV VXFK DV IOXRUVSDU FU\ROLWH DQG KDSDWLWHV DUH XVHG E\ YDULRXV LQGXVWULHV DV UDZ PDWHULDOV RU DV SURFHVV FKHPLFDOV )HUWLOL]HU LQGXVWU\URXWLQHO\SURFHVVHVSKRVSKDWHURFNVZKLFKFRQWDLQDERXW±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

(IIHFWRQ+XPDQ+HDOWK

(IIHFWRQ+XPDQ+HDOWK

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µIOXRURVLV¶ZKLFKLVYHU\SUHYDOHQWLQ.DUQDWDND$QGKUD3UDGHVK 0DKDUDVKWUDDQG7DPLO1DGX /LYHVWRFNVEHLQJIRUDJLQJDQLPDOV DXWRPDWLFDOO\LQJHVWODUJHTXDQWLWLHVRI IOXRULGHV7KH\DOVRDEVRUESDUWLFXODWHVVXFKDV&D)DQG1D$O)UHDGLO\IURP JDVWURLQWHVWLQDOWUDFWLQWRWKHEORRG$OPRVWRIWKHDEVRUEHGIOXRULGHLVH[FUHWHG WKURXJK WKH NLGQH\ $QLPDOV URXWLQHO\ LQJHVWLQJ IOXRULGHV H[KLELW DEQRUPDO FDOFLILFDWLRQ RI ERQHV K\SHURVWRVLV  DQG IOXRURVLV 6DIH OHYHOV RI IOXRULGH LQ OLYHVWRFNVUDQJHVIURP ± SSP)OXRURVLVPRWWOHVWKHWHHWKDQGFDXVHVWKHLU IDOORXW>@

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µIOXRURVLV¶ZKLFKLVYHU\SUHYDOHQWLQ.DUQDWDND$QGKUD3UDGHVK 0DKDUDVKWUDDQG7DPLO1DGX /LYHVWRFNVEHLQJIRUDJLQJDQLPDOV DXWRPDWLFDOO\LQJHVWODUJHTXDQWLWLHVRI IOXRULGHV7KH\DOVRDEVRUESDUWLFXODWHVVXFKDV&D)DQG1D$O)UHDGLO\IURP JDVWURLQWHVWLQDOWUDFWLQWRWKHEORRG$OPRVWRIWKHDEVRUEHGIOXRULGHLVH[FUHWHG WKURXJK WKH NLGQH\ $QLPDOV URXWLQHO\ LQJHVWLQJ IOXRULGHV H[KLELW DEQRUPDO FDOFLILFDWLRQ RI ERQHV K\SHURVWRVLV  DQG IOXRURVLV 6DIH OHYHOV RI IOXRULGH LQ OLYHVWRFNVUDQJHVIURP ± SSP)OXRURVLVPRWWOHVWKHWHHWKDQGFDXVHVWKHLU IDOORXW>@

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



 )/825,'(6

 )/825,'(6

8QFRPELQHGIOXRULQHLVXQOLNHO\WREHSUHVHQWLQDLUDVLWDYHU\UHDFWLYHJDVDQG GRHVQRWRFFXULQWKHIUHHVWDWH6SHFLILFLQGXVWULDORSHUDWLRQVRUFRPEXVWLRQRI FRDO SURGXFHV IOXRULGHV )OXRULGHV VXFK DV IOXRUVSDU FU\ROLWH DQG KDSDWLWHV DUH XVHG E\ YDULRXV LQGXVWULHV DV UDZ PDWHULDOV RU DV SURFHVV FKHPLFDOV )HUWLOL]HU LQGXVWU\URXWLQHO\SURFHVVHVSKRVSKDWHURFNVZKLFKFRQWDLQDERXW±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

8QFRPELQHGIOXRULQHLVXQOLNHO\WREHSUHVHQWLQDLUDVLWDYHU\UHDFWLYHJDVDQG GRHVQRWRFFXULQWKHIUHHVWDWH6SHFLILFLQGXVWULDORSHUDWLRQVRUFRPEXVWLRQRI FRDO SURGXFHV IOXRULGHV )OXRULGHV VXFK DV IOXRUVSDU FU\ROLWH DQG KDSDWLWHV DUH XVHG E\ YDULRXV LQGXVWULHV DV UDZ PDWHULDOV RU DV SURFHVV FKHPLFDOV )HUWLOL]HU LQGXVWU\URXWLQHO\SURFHVVHVSKRVSKDWHURFNVZKLFKFRQWDLQDERXW±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

(IIHFWRQ+XPDQ+HDOWK

(IIHFWRQ+XPDQ+HDOWK

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µIOXRURVLV¶ZKLFKLVYHU\SUHYDOHQWLQ.DUQDWDND$QGKUD3UDGHVK 0DKDUDVKWUDDQG7DPLO1DGX /LYHVWRFNVEHLQJIRUDJLQJDQLPDOV DXWRPDWLFDOO\LQJHVWODUJHTXDQWLWLHVRI IOXRULGHV7KH\DOVRDEVRUESDUWLFXODWHVVXFKDV&D)DQG1D$O)UHDGLO\IURP JDVWURLQWHVWLQDOWUDFWLQWRWKHEORRG$OPRVWRIWKHDEVRUEHGIOXRULGHLVH[FUHWHG WKURXJK WKH NLGQH\ $QLPDOV URXWLQHO\ LQJHVWLQJ IOXRULGHV H[KLELW DEQRUPDO FDOFLILFDWLRQ RI ERQHV K\SHURVWRVLV  DQG IOXRURVLV 6DIH OHYHOV RI IOXRULGH LQ OLYHVWRFNVUDQJHVIURP ± SSP)OXRURVLVPRWWOHVWKHWHHWKDQGFDXVHVWKHLU IDOORXW>@

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µIOXRURVLV¶ZKLFKLVYHU\SUHYDOHQWLQ.DUQDWDND$QGKUD3UDGHVK 0DKDUDVKWUDDQG7DPLO1DGX /LYHVWRFNVEHLQJIRUDJLQJDQLPDOV DXWRPDWLFDOO\LQJHVWODUJHTXDQWLWLHVRI IOXRULGHV7KH\DOVRDEVRUESDUWLFXODWHVVXFKDV&D)DQG1D$O)UHDGLO\IURP JDVWURLQWHVWLQDOWUDFWLQWRWKHEORRG$OPRVWRIWKHDEVRUEHGIOXRULGHLVH[FUHWHG WKURXJK WKH NLGQH\ $QLPDOV URXWLQHO\ LQJHVWLQJ IOXRULGHV H[KLELW DEQRUPDO FDOFLILFDWLRQ RI ERQHV K\SHURVWRVLV  DQG IOXRURVLV 6DIH OHYHOV RI IOXRULGH LQ OLYHVWRFNVUDQJHVIURP ± SSP)OXRURVLVPRWWOHVWKHWHHWKDQGFDXVHVWKHLU IDOORXW>@

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

(IIHFWRQ3ODQWV

(IIHFWRQ3ODQWV

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± SSP RI IOXRULGHUHVXOWVLQQHFURVLV7HDDQGFRWWRQDUHUHVLVWDQWWRIOXRULGHHYHQXSWR SSP >@ )OXRULGHFDXVHVFKDQJHVLQSKRWRV\QWKHVLVUHVSLUDWLRQRUPHWDEROLFUDWHVRI DPLQRDFLGVSURWHLQVIDWW\DFLGVOLSLGVDQGFDUERK\GUDWHV&HUWDLQHQ]\PHVDUH PRGXODWHGE\IOXRULGH&DOFLXPDQGPDJQHVLXPIOXRULGHFRPSOH[HVUHGXFHWKH UDWH RI FHOO PHWDEROLVP DQG H[KLELW GHOHWHULRXV HIIHFWV RQ UHJXODWRU\ DFWLYLWLHV 5HDFWLRQVLQYROYLQJ$73DUHPRVWO\DIIHFWHG

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± SSP RI IOXRULGHUHVXOWVLQQHFURVLV7HDDQGFRWWRQDUHUHVLVWDQWWRIOXRULGHHYHQXSWR SSP >@ )OXRULGHFDXVHVFKDQJHVLQSKRWRV\QWKHVLVUHVSLUDWLRQRUPHWDEROLFUDWHVRI DPLQRDFLGVSURWHLQVIDWW\DFLGVOLSLGVDQGFDUERK\GUDWHV&HUWDLQHQ]\PHVDUH PRGXODWHGE\IOXRULGH&DOFLXPDQGPDJQHVLXPIOXRULGHFRPSOH[HVUHGXFHWKH UDWH RI FHOO PHWDEROLVP DQG H[KLELW GHOHWHULRXV HIIHFWV RQ UHJXODWRU\ DFWLYLWLHV 5HDFWLRQVLQYROYLQJ$73DUHPRVWO\DIIHFWHG

 2=21(

 2=21(

2]RQHLVDFRORXUOHVVJDVZLWKDFKDUDFWHULVWLFRGRXU,WLVSURGXFHGE\FKHPLFDO UHDFWLRQ ZLWK QLWURJHQ R[LGHV DQG K\GURFDUERQV LQ SUHVHQFH RI VXQOLJKW ,Q WKH ORZHUDWPRVSKHUHWKHUHDFWLRQSURGXFWVIRUPDEODQNHWRIEURZQLVKKD]HGXULQJ KRWVXQQ\GD\VJHQHUDOO\UHIHUUHGDVµSKRWRFKHPLFDOVPRJ¶7KHSKRWRFKHPLFDO VPRJLQDGGLWLRQWRR]RQHKDVSHUR[\DF\OQLWUDWHVDQGRWKHUR[LGDQWV1RZDGD\V DOOWKHR[LGDQWVDUHPRQLWRUHGDVµWRWDOR[LGDQWV¶RIZKLFKR]RQHLVWKHSULQFLSOH FRQVWLWXHQW 7KH EDFNJURXQG FRQFHQWUDWLRQ RI DWPRVSKHULF R]RQH DW VHD OHYHO LV ± SSPDQGLQFUHDVHVZLWKDOWLWXGH8UEDQFRQFHQWUDWLRQRIR]RQHYDULHV IURP ± SSPHYHQUHDFKLQJDPD[LPXPRISSPDOVR$ERYH SSPLUULWDWLQJVPHOORIR]RQHDQGSKRWRFKHPLFDOVPRJEHFRPHQRWLFHDEOH 2]RQHFRQFHQWUDWLRQSHDNVWZLFHDGD\LQXUEDQHQYLURQPHQWV,QWKHDIWHUQRRQ DURXQG  SP PD[LPXP DPRXQW RI VXQOLJKW DQG K\GURFDUERQ HPLVVLRQV FDXVH SHDNIRUPDWLRQRIR]RQH$JDLQEHWZHHQ±SPHPLVVLRQVIURPWUDIILFSXVKWKH R]RQHFRQFHQWUDWLRQWRDVPDOOHUPD[LPXP7\SLFDOFRQFHQWUDWLRQRIR]RQHLQD FLW\LVFKDUDFWHUL]HGE\ORZFRQFHQWUDWLRQDWQLJKWLQFUHDVLQJWRDPD[LPXPDURXQG QRRQUHODWLYHGURSLQSHDNFRQFHQWUDWLRQEHWZHHQ± SPIROORZHGE\DQRWKHU PD[LPXPLQWKHHYHQLQJDQGSUDFWLFDOO\GLVDSSHDULQJDWQLJKW7\SLFDOR]RQHOHYHOV LQ,QGLDQFLWLHVYDU\IURP±SSESSE | —JSHUFXELFPHWUH 7KH:+2 VWDQGDUGIRUHLJKWKRXUDYHUDJHLV ±—JPDQG ±—JPIRUKRXU GXUDWLRQ

2]RQHLVDFRORXUOHVVJDVZLWKDFKDUDFWHULVWLFRGRXU,WLVSURGXFHGE\FKHPLFDO UHDFWLRQ ZLWK QLWURJHQ R[LGHV DQG K\GURFDUERQV LQ SUHVHQFH RI VXQOLJKW ,Q WKH ORZHUDWPRVSKHUHWKHUHDFWLRQSURGXFWVIRUPDEODQNHWRIEURZQLVKKD]HGXULQJ KRWVXQQ\GD\VJHQHUDOO\UHIHUUHGDVµSKRWRFKHPLFDOVPRJ¶7KHSKRWRFKHPLFDO VPRJLQDGGLWLRQWRR]RQHKDVSHUR[\DF\OQLWUDWHVDQGRWKHUR[LGDQWV1RZDGD\V DOOWKHR[LGDQWVDUHPRQLWRUHGDVµWRWDOR[LGDQWV¶RIZKLFKR]RQHLVWKHSULQFLSOH FRQVWLWXHQW 7KH EDFNJURXQG FRQFHQWUDWLRQ RI DWPRVSKHULF R]RQH DW VHD OHYHO LV ± SSPDQGLQFUHDVHVZLWKDOWLWXGH8UEDQFRQFHQWUDWLRQRIR]RQHYDULHV IURP ± SSPHYHQUHDFKLQJDPD[LPXPRISSPDOVR$ERYH SSPLUULWDWLQJVPHOORIR]RQHDQGSKRWRFKHPLFDOVPRJEHFRPHQRWLFHDEOH 2]RQHFRQFHQWUDWLRQSHDNVWZLFHDGD\LQXUEDQHQYLURQPHQWV,QWKHDIWHUQRRQ DURXQG  SP PD[LPXP DPRXQW RI VXQOLJKW DQG K\GURFDUERQ HPLVVLRQV FDXVH SHDNIRUPDWLRQRIR]RQH$JDLQEHWZHHQ±SPHPLVVLRQVIURPWUDIILFSXVKWKH R]RQHFRQFHQWUDWLRQWRDVPDOOHUPD[LPXP7\SLFDOFRQFHQWUDWLRQRIR]RQHLQD FLW\LVFKDUDFWHUL]HGE\ORZFRQFHQWUDWLRQDWQLJKWLQFUHDVLQJWRDPD[LPXPDURXQG QRRQUHODWLYHGURSLQSHDNFRQFHQWUDWLRQEHWZHHQ± SPIROORZHGE\DQRWKHU PD[LPXPLQWKHHYHQLQJDQGSUDFWLFDOO\GLVDSSHDULQJDWQLJKW7\SLFDOR]RQHOHYHOV LQ,QGLDQFLWLHVYDU\IURP±SSESSE | —JSHUFXELFPHWUH 7KH:+2 VWDQGDUGIRUHLJKWKRXUDYHUDJHLV ±—JPDQG ±—JPIRUKRXU GXUDWLRQ

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

(IIHFWRQ3ODQWV

(IIHFWRQ3ODQWV

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± SSP RI IOXRULGHUHVXOWVLQQHFURVLV7HDDQGFRWWRQDUHUHVLVWDQWWRIOXRULGHHYHQXSWR SSP >@ )OXRULGHFDXVHVFKDQJHVLQSKRWRV\QWKHVLVUHVSLUDWLRQRUPHWDEROLFUDWHVRI DPLQRDFLGVSURWHLQVIDWW\DFLGVOLSLGVDQGFDUERK\GUDWHV&HUWDLQHQ]\PHVDUH PRGXODWHGE\IOXRULGH&DOFLXPDQGPDJQHVLXPIOXRULGHFRPSOH[HVUHGXFHWKH UDWH RI FHOO PHWDEROLVP DQG H[KLELW GHOHWHULRXV HIIHFWV RQ UHJXODWRU\ DFWLYLWLHV 5HDFWLRQVLQYROYLQJ$73DUHPRVWO\DIIHFWHG

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± SSP RI IOXRULGHUHVXOWVLQQHFURVLV7HDDQGFRWWRQDUHUHVLVWDQWWRIOXRULGHHYHQXSWR SSP >@ )OXRULGHFDXVHVFKDQJHVLQSKRWRV\QWKHVLVUHVSLUDWLRQRUPHWDEROLFUDWHVRI DPLQRDFLGVSURWHLQVIDWW\DFLGVOLSLGVDQGFDUERK\GUDWHV&HUWDLQHQ]\PHVDUH PRGXODWHGE\IOXRULGH&DOFLXPDQGPDJQHVLXPIOXRULGHFRPSOH[HVUHGXFHWKH UDWH RI FHOO PHWDEROLVP DQG H[KLELW GHOHWHULRXV HIIHFWV RQ UHJXODWRU\ DFWLYLWLHV 5HDFWLRQVLQYROYLQJ$73DUHPRVWO\DIIHFWHG

 2=21(

 2=21(

2]RQHLVDFRORXUOHVVJDVZLWKDFKDUDFWHULVWLFRGRXU,WLVSURGXFHGE\FKHPLFDO UHDFWLRQ ZLWK QLWURJHQ R[LGHV DQG K\GURFDUERQV LQ SUHVHQFH RI VXQOLJKW ,Q WKH ORZHUDWPRVSKHUHWKHUHDFWLRQSURGXFWVIRUPDEODQNHWRIEURZQLVKKD]HGXULQJ KRWVXQQ\GD\VJHQHUDOO\UHIHUUHGDVµSKRWRFKHPLFDOVPRJ¶7KHSKRWRFKHPLFDO VPRJLQDGGLWLRQWRR]RQHKDVSHUR[\DF\OQLWUDWHVDQGRWKHUR[LGDQWV1RZDGD\V DOOWKHR[LGDQWVDUHPRQLWRUHGDVµWRWDOR[LGDQWV¶RIZKLFKR]RQHLVWKHSULQFLSOH FRQVWLWXHQW 7KH EDFNJURXQG FRQFHQWUDWLRQ RI DWPRVSKHULF R]RQH DW VHD OHYHO LV ± SSPDQGLQFUHDVHVZLWKDOWLWXGH8UEDQFRQFHQWUDWLRQRIR]RQHYDULHV IURP ± SSPHYHQUHDFKLQJDPD[LPXPRISSPDOVR$ERYH SSPLUULWDWLQJVPHOORIR]RQHDQGSKRWRFKHPLFDOVPRJEHFRPHQRWLFHDEOH 2]RQHFRQFHQWUDWLRQSHDNVWZLFHDGD\LQXUEDQHQYLURQPHQWV,QWKHDIWHUQRRQ DURXQG  SP PD[LPXP DPRXQW RI VXQOLJKW DQG K\GURFDUERQ HPLVVLRQV FDXVH SHDNIRUPDWLRQRIR]RQH$JDLQEHWZHHQ±SPHPLVVLRQVIURPWUDIILFSXVKWKH R]RQHFRQFHQWUDWLRQWRDVPDOOHUPD[LPXP7\SLFDOFRQFHQWUDWLRQRIR]RQHLQD FLW\LVFKDUDFWHUL]HGE\ORZFRQFHQWUDWLRQDWQLJKWLQFUHDVLQJWRDPD[LPXPDURXQG QRRQUHODWLYHGURSLQSHDNFRQFHQWUDWLRQEHWZHHQ± SPIROORZHGE\DQRWKHU PD[LPXPLQWKHHYHQLQJDQGSUDFWLFDOO\GLVDSSHDULQJDWQLJKW7\SLFDOR]RQHOHYHOV LQ,QGLDQFLWLHVYDU\IURP±SSESSE | —JSHUFXELFPHWUH 7KH:+2 VWDQGDUGIRUHLJKWKRXUDYHUDJHLV ±—JPDQG ±—JPIRUKRXU GXUDWLRQ

2]RQHLVDFRORXUOHVVJDVZLWKDFKDUDFWHULVWLFRGRXU,WLVSURGXFHGE\FKHPLFDO UHDFWLRQ ZLWK QLWURJHQ R[LGHV DQG K\GURFDUERQV LQ SUHVHQFH RI VXQOLJKW ,Q WKH ORZHUDWPRVSKHUHWKHUHDFWLRQSURGXFWVIRUPDEODQNHWRIEURZQLVKKD]HGXULQJ KRWVXQQ\GD\VJHQHUDOO\UHIHUUHGDVµSKRWRFKHPLFDOVPRJ¶7KHSKRWRFKHPLFDO VPRJLQDGGLWLRQWRR]RQHKDVSHUR[\DF\OQLWUDWHVDQGRWKHUR[LGDQWV1RZDGD\V DOOWKHR[LGDQWVDUHPRQLWRUHGDVµWRWDOR[LGDQWV¶RIZKLFKR]RQHLVWKHSULQFLSOH FRQVWLWXHQW 7KH EDFNJURXQG FRQFHQWUDWLRQ RI DWPRVSKHULF R]RQH DW VHD OHYHO LV ± SSPDQGLQFUHDVHVZLWKDOWLWXGH8UEDQFRQFHQWUDWLRQRIR]RQHYDULHV IURP ± SSPHYHQUHDFKLQJDPD[LPXPRISSPDOVR$ERYH SSPLUULWDWLQJVPHOORIR]RQHDQGSKRWRFKHPLFDOVPRJEHFRPHQRWLFHDEOH 2]RQHFRQFHQWUDWLRQSHDNVWZLFHDGD\LQXUEDQHQYLURQPHQWV,QWKHDIWHUQRRQ DURXQG  SP PD[LPXP DPRXQW RI VXQOLJKW DQG K\GURFDUERQ HPLVVLRQV FDXVH SHDNIRUPDWLRQRIR]RQH$JDLQEHWZHHQ±SPHPLVVLRQVIURPWUDIILFSXVKWKH R]RQHFRQFHQWUDWLRQWRDVPDOOHUPD[LPXP7\SLFDOFRQFHQWUDWLRQRIR]RQHLQD FLW\LVFKDUDFWHUL]HGE\ORZFRQFHQWUDWLRQDWQLJKWLQFUHDVLQJWRDPD[LPXPDURXQG QRRQUHODWLYHGURSLQSHDNFRQFHQWUDWLRQEHWZHHQ± SPIROORZHGE\DQRWKHU PD[LPXPLQWKHHYHQLQJDQGSUDFWLFDOO\GLVDSSHDULQJDWQLJKW7\SLFDOR]RQHOHYHOV LQ,QGLDQFLWLHVYDU\IURP±SSESSE | —JSHUFXELFPHWUH 7KH:+2 VWDQGDUGIRUHLJKWKRXUDYHUDJHLV ±—JPDQG ±—JPIRUKRXU GXUDWLRQ

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



(IIHFWRQ+XPDQV

(IIHFWRQ+XPDQV

&RQFHUQIRUKLJKOHYHORIR]RQHLQWKHDLUVWHPVIURPWKHIDFWWKDWWKHLQVSLUHG R]RQHUHDFWVZLWKERG\IOXLGVUHOHDVLQJR[\JHQDQGK\GUR[\OIUHHUDGLFDOV:KLOH WKHUHDUHQRNQRZQGHDWKVUHODWHGWRR]RQHH[SRVXUHVXIILFLHQWWR[LFRORJLFDOSURRI H[LVWVWKDWWKHSROOXWDQWLQGXFHVFHOOGDPDJH>@([SHULPHQWDOHYLGHQFHVXJJHVWV WKDW R]RQH GRHV SURGXFH SXOPRQDU\ RHGHPD RQ FRQWDFW ZLWK DOYHRODU VXUIDFH GHSHQGLQJXSRQWKHLQGLYLGXDOFRQGLWLRQVRIH[SRVXUH,WKDVEHHQVXJJHVWHGWKDW WKHUH PD\ EH VSHFLILF UHFHSWRU VLWHV ZKLFK ZKHQ VWLPXODWHG UHOHDVH QHXUDO RU KXPHUDO LPSXOVHV UHVXOWLQJ LQ WKH VSLOODJH RI IOXLG LQWR WKH WLVVXH DQG DOYHROXV +RZHYHU WKH PLFURDQDWRPLF VLWH RI WKH RHGHPDJHQLF UHFHSWRUV KDV QRW EHHQ LGHQWLILHG/RZOHYHOFRQWLQXRXVH[SRVXUHWRR]RQHLQ ±SSPFRQFHQWUDWLRQ RQUDWVJXLQHDSLJVPRQNH\VGRJVDQGPLFHUHYHDOHGDVORZSURJUHVVLYHGHFOLQH LQ DFWLYLW\ GHSUHVVLRQ LQ SKDJRF\WLF DFWLYLW\ UHGXFWLRQ LQ DFHW\O FKROLQHVWHUDVH DFWLYLW\DQGWXPHRURJHQHWLFFKDUDFWHULVWLFV

&RQFHUQIRUKLJKOHYHORIR]RQHLQWKHDLUVWHPVIURPWKHIDFWWKDWWKHLQVSLUHG R]RQHUHDFWVZLWKERG\IOXLGVUHOHDVLQJR[\JHQDQGK\GUR[\OIUHHUDGLFDOV:KLOH WKHUHDUHQRNQRZQGHDWKVUHODWHGWRR]RQHH[SRVXUHVXIILFLHQWWR[LFRORJLFDOSURRI H[LVWVWKDWWKHSROOXWDQWLQGXFHVFHOOGDPDJH>@([SHULPHQWDOHYLGHQFHVXJJHVWV WKDW R]RQH GRHV SURGXFH SXOPRQDU\ RHGHPD RQ FRQWDFW ZLWK DOYHRODU VXUIDFH GHSHQGLQJXSRQWKHLQGLYLGXDOFRQGLWLRQVRIH[SRVXUH,WKDVEHHQVXJJHVWHGWKDW WKHUH PD\ EH VSHFLILF UHFHSWRU VLWHV ZKLFK ZKHQ VWLPXODWHG UHOHDVH QHXUDO RU KXPHUDO LPSXOVHV UHVXOWLQJ LQ WKH VSLOODJH RI IOXLG LQWR WKH WLVVXH DQG DOYHROXV +RZHYHU WKH PLFURDQDWRPLF VLWH RI WKH RHGHPDJHQLF UHFHSWRUV KDV QRW EHHQ LGHQWLILHG/RZOHYHOFRQWLQXRXVH[SRVXUHWRR]RQHLQ ±SSPFRQFHQWUDWLRQ RQUDWVJXLQHDSLJVPRQNH\VGRJVDQGPLFHUHYHDOHGDVORZSURJUHVVLYHGHFOLQH LQ DFWLYLW\ GHSUHVVLRQ LQ SKDJRF\WLF DFWLYLW\ UHGXFWLRQ LQ DFHW\O FKROLQHVWHUDVH DFWLYLW\DQGWXPHRURJHQHWLFFKDUDFWHULVWLFV

 (IIHFW RQ 9HJHWDWLRQ

 (IIHFW RQ 9HJHWDWLRQ

2]RQHGDPDJHLVFKDUDFWHUL]HGE\VPDOOLUUHJXODUFROODSVHGFHOOVZLWKSLJPHQWHG UHGEURZQRUEOHDFKHGVWUDZWRZKLWHIOHFNVGHSHQGLQJXSRQWKHVSHFLILFFRQGLWLRQV RIH[SRVXUH:LGHVSUHDGGDPDJHEHFRPHVYLVLEOHDVLUUHJXODUQHFURWLFERWFKHV :KLOHWKLVHIIHFWLVTXLWHFRPPRQLQEURDGOHDYHVJUDVVH[KLELWVVFDWWHUHGQHFURWLF DUHDV,QDFXWHLQMXULHVWKHVHDUHDVPD\FRDOHVFHLQWRODUJHQHFURWLFOHVLRQV&RQLIHUV H[KLELWEURZQQHFWURWLFWLSVZLWKRXWDQ\GHILQLWHVHSDUDWLRQEHWZHHQEURZQDQG JUHHQ WLVVXHV >@ 6HQVLWLYHSODQWVUHVSRQGWRR]RQHDWSSPLQ±KRXUVDQGWRSSP ZLWKLQ±KRXUV7REDFFRWRPDWREHDQVVSLQDFKSRWDWRRDWOLODFEHJRQLDDQG ZKLWHSLQHDUHYHU\VHQVLWLYHWRR]RQHZKHUHDVPLQWJHUDQLXPSHSSHUPDSOHDQG JODGLROXVDUHTXLWHUHVLVWDQW>@ )LHOGH[SHULPHQWVKDYHVKRZQWKDWR]RQHKDVDVLJQLILFDQWGHELOLWDWLYHLPSDFW RQFURSV$7(5,VWXG\LQHVWLPDWHGWKDWR]RQHLQGXFHGHFRQRPLFORVVHVRI ZKHDWULFHFRWWRQDQGJURXQGQXWZHUHRIWKHRUGHURI WKRXVDQGWRQVUHVSHFWLYHO\

2]RQHGDPDJHLVFKDUDFWHUL]HGE\VPDOOLUUHJXODUFROODSVHGFHOOVZLWKSLJPHQWHG UHGEURZQRUEOHDFKHGVWUDZWRZKLWHIOHFNVGHSHQGLQJXSRQWKHVSHFLILFFRQGLWLRQV RIH[SRVXUH:LGHVSUHDGGDPDJHEHFRPHVYLVLEOHDVLUUHJXODUQHFURWLFERWFKHV :KLOHWKLVHIIHFWLVTXLWHFRPPRQLQEURDGOHDYHVJUDVVH[KLELWVVFDWWHUHGQHFURWLF DUHDV,QDFXWHLQMXULHVWKHVHDUHDVPD\FRDOHVFHLQWRODUJHQHFURWLFOHVLRQV&RQLIHUV H[KLELWEURZQQHFWURWLFWLSVZLWKRXWDQ\GHILQLWHVHSDUDWLRQEHWZHHQEURZQDQG JUHHQ WLVVXHV >@ 6HQVLWLYHSODQWVUHVSRQGWRR]RQHDWSSPLQ±KRXUVDQGWRSSP ZLWKLQ±KRXUV7REDFFRWRPDWREHDQVVSLQDFKSRWDWRRDWOLODFEHJRQLDDQG ZKLWHSLQHDUHYHU\VHQVLWLYHWRR]RQHZKHUHDVPLQWJHUDQLXPSHSSHUPDSOHDQG JODGLROXVDUHTXLWHUHVLVWDQW>@ )LHOGH[SHULPHQWVKDYHVKRZQWKDWR]RQHKDVDVLJQLILFDQWGHELOLWDWLYHLPSDFW RQFURSV$7(5,VWXG\LQHVWLPDWHGWKDWR]RQHLQGXFHGHFRQRPLFORVVHVRI ZKHDWULFHFRWWRQDQGJURXQGQXWZHUHRIWKHRUGHURI WKRXVDQGWRQVUHVSHFWLYHO\

 (IIHFW RQ 0DWHULDOV

 (IIHFW RQ 0DWHULDOV

2]RQHLVDYHU\UHDFWLYHVXEVWDQFH0XFKRIWKHGHJUDGDWLRQRIPDWHULDOVVXFKDV UXEEHUDQGIDEULFVLVXVXDOO\DWWULEXWHGWRµZHDWKHULQJ¶SULPDULO\FDXVHGE\R]RQH 2]RQHFDXVHVWKHFUDFNLQJRIV\QWKHWLFUXEEHUVDW±SSP ± PJP  ,WDOVRDWWDFNVILEUHVRIFRWWRQDFHWDWHQ\ORQDQGSRO\HVWHUIDEULFVLQWKHLQFUHDVLQJ RUGHU7KHIDGLQJFRORXUVG\HV GLVLQWHJUDWLRQRIILEUHVDQGFUDFNLQJRIUXEEHUV HWFDUHDOODWWULEXWHGWRWKHR[LGL]LQJDELOLW\RIR]RQH>@

2]RQHLVDYHU\UHDFWLYHVXEVWDQFH0XFKRIWKHGHJUDGDWLRQRIPDWHULDOVVXFKDV UXEEHUDQGIDEULFVLVXVXDOO\DWWULEXWHGWRµZHDWKHULQJ¶SULPDULO\FDXVHGE\R]RQH 2]RQHFDXVHVWKHFUDFNLQJRIV\QWKHWLFUXEEHUVDW±SSP ± PJP  ,WDOVRDWWDFNVILEUHVRIFRWWRQDFHWDWHQ\ORQDQGSRO\HVWHUIDEULFVLQWKHLQFUHDVLQJ RUGHU7KHIDGLQJFRORXUVG\HV GLVLQWHJUDWLRQRIILEUHVDQGFUDFNLQJRIUXEEHUV HWFDUHDOODWWULEXWHGWRWKHR[LGL]LQJDELOLW\RIR]RQH>@

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



(IIHFWRQ+XPDQV

(IIHFWRQ+XPDQV

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±SSPFRQFHQWUDWLRQ RQUDWVJXLQHDSLJVPRQNH\VGRJVDQGPLFHUHYHDOHGDVORZSURJUHVVLYHGHFOLQH LQ DFWLYLW\ GHSUHVVLRQ LQ SKDJRF\WLF DFWLYLW\ UHGXFWLRQ LQ DFHW\O FKROLQHVWHUDVH DFWLYLW\DQGWXPHRURJHQHWLFFKDUDFWHULVWLFV

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±SSPFRQFHQWUDWLRQ RQUDWVJXLQHDSLJVPRQNH\VGRJVDQGPLFHUHYHDOHGDVORZSURJUHVVLYHGHFOLQH LQ DFWLYLW\ GHSUHVVLRQ LQ SKDJRF\WLF DFWLYLW\ UHGXFWLRQ LQ DFHW\O FKROLQHVWHUDVH DFWLYLW\DQGWXPHRURJHQHWLFFKDUDFWHULVWLFV

 (IIHFW RQ 9HJHWDWLRQ

 (IIHFW RQ 9HJHWDWLRQ

2]RQHGDPDJHLVFKDUDFWHUL]HGE\VPDOOLUUHJXODUFROODSVHGFHOOVZLWKSLJPHQWHG UHGEURZQRUEOHDFKHGVWUDZWRZKLWHIOHFNVGHSHQGLQJXSRQWKHVSHFLILFFRQGLWLRQV RIH[SRVXUH:LGHVSUHDGGDPDJHEHFRPHVYLVLEOHDVLUUHJXODUQHFURWLFERWFKHV :KLOHWKLVHIIHFWLVTXLWHFRPPRQLQEURDGOHDYHVJUDVVH[KLELWVVFDWWHUHGQHFURWLF DUHDV,QDFXWHLQMXULHVWKHVHDUHDVPD\FRDOHVFHLQWRODUJHQHFURWLFOHVLRQV&RQLIHUV H[KLELWEURZQQHFWURWLFWLSVZLWKRXWDQ\GHILQLWHVHSDUDWLRQEHWZHHQEURZQDQG JUHHQ WLVVXHV >@ 6HQVLWLYHSODQWVUHVSRQGWRR]RQHDWSSPLQ±KRXUVDQGWRSSP ZLWKLQ±KRXUV7REDFFRWRPDWREHDQVVSLQDFKSRWDWRRDWOLODFEHJRQLDDQG ZKLWHSLQHDUHYHU\VHQVLWLYHWRR]RQHZKHUHDVPLQWJHUDQLXPSHSSHUPDSOHDQG JODGLROXVDUHTXLWHUHVLVWDQW>@ )LHOGH[SHULPHQWVKDYHVKRZQWKDWR]RQHKDVDVLJQLILFDQWGHELOLWDWLYHLPSDFW RQFURSV$7(5,VWXG\LQHVWLPDWHGWKDWR]RQHLQGXFHGHFRQRPLFORVVHVRI ZKHDWULFHFRWWRQDQGJURXQGQXWZHUHRIWKHRUGHURI WKRXVDQGWRQVUHVSHFWLYHO\

2]RQHGDPDJHLVFKDUDFWHUL]HGE\VPDOOLUUHJXODUFROODSVHGFHOOVZLWKSLJPHQWHG UHGEURZQRUEOHDFKHGVWUDZWRZKLWHIOHFNVGHSHQGLQJXSRQWKHVSHFLILFFRQGLWLRQV RIH[SRVXUH:LGHVSUHDGGDPDJHEHFRPHVYLVLEOHDVLUUHJXODUQHFURWLFERWFKHV :KLOHWKLVHIIHFWLVTXLWHFRPPRQLQEURDGOHDYHVJUDVVH[KLELWVVFDWWHUHGQHFURWLF DUHDV,QDFXWHLQMXULHVWKHVHDUHDVPD\FRDOHVFHLQWRODUJHQHFURWLFOHVLRQV&RQLIHUV H[KLELWEURZQQHFWURWLFWLSVZLWKRXWDQ\GHILQLWHVHSDUDWLRQEHWZHHQEURZQDQG JUHHQ WLVVXHV >@ 6HQVLWLYHSODQWVUHVSRQGWRR]RQHDWSSPLQ±KRXUVDQGWRSSP ZLWKLQ±KRXUV7REDFFRWRPDWREHDQVVSLQDFKSRWDWRRDWOLODFEHJRQLDDQG ZKLWHSLQHDUHYHU\VHQVLWLYHWRR]RQHZKHUHDVPLQWJHUDQLXPSHSSHUPDSOHDQG JODGLROXVDUHTXLWHUHVLVWDQW>@ )LHOGH[SHULPHQWVKDYHVKRZQWKDWR]RQHKDVDVLJQLILFDQWGHELOLWDWLYHLPSDFW RQFURSV$7(5,VWXG\LQHVWLPDWHGWKDWR]RQHLQGXFHGHFRQRPLFORVVHVRI ZKHDWULFHFRWWRQDQGJURXQGQXWZHUHRIWKHRUGHURI WKRXVDQGWRQVUHVSHFWLYHO\

 (IIHFW RQ 0DWHULDOV

 (IIHFW RQ 0DWHULDOV

2]RQHLVDYHU\UHDFWLYHVXEVWDQFH0XFKRIWKHGHJUDGDWLRQRIPDWHULDOVVXFKDV UXEEHUDQGIDEULFVLVXVXDOO\DWWULEXWHGWRµZHDWKHULQJ¶SULPDULO\FDXVHGE\R]RQH 2]RQHFDXVHVWKHFUDFNLQJRIV\QWKHWLFUXEEHUVDW±SSP ± PJP  ,WDOVRDWWDFNVILEUHVRIFRWWRQDFHWDWHQ\ORQDQGSRO\HVWHUIDEULFVLQWKHLQFUHDVLQJ RUGHU7KHIDGLQJFRORXUVG\HV GLVLQWHJUDWLRQRIILEUHVDQGFUDFNLQJRIUXEEHUV HWFDUHDOODWWULEXWHGWRWKHR[LGL]LQJDELOLW\RIR]RQH>@

2]RQHLVDYHU\UHDFWLYHVXEVWDQFH0XFKRIWKHGHJUDGDWLRQRIPDWHULDOVVXFKDV UXEEHUDQGIDEULFVLVXVXDOO\DWWULEXWHGWRµZHDWKHULQJ¶SULPDULO\FDXVHGE\R]RQH 2]RQHFDXVHVWKHFUDFNLQJRIV\QWKHWLFUXEEHUVDW±SSP ± PJP  ,WDOVRDWWDFNVILEUHVRIFRWWRQDFHWDWHQ\ORQDQGSRO\HVWHUIDEULFVLQWKHLQFUHDVLQJ RUGHU7KHIDGLQJFRORXUVG\HV GLVLQWHJUDWLRQRIILEUHVDQGFUDFNLQJRIUXEEHUV HWFDUHDOODWWULEXWHGWRWKHR[LGL]LQJDELOLW\RIR]RQH>@

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 6(&21'$5@

$YDVWERG\RIWR[LFRORJLFDOOLWHUDWXUHH[LVWVRQOHDG%DVLFDOO\OHDGLVDQHXURWR[LQ /HDG SRLVRQLQJ UHVXOWV LQ DQDHPLD FRQYXOVLRQV GHOLULXP FRPD VHYHUH DQG LUUHYHUVLEOHEUDLQGDPDJHIROORZHGE\GHDWK0D[LPXPKXPDQLQWDNHRIOHDGLV WKURXJK IRRG $LUERUQH OHDG LQWDNH FRQVWLWXWHV DERXW  ± RI WKH WRWDO OHDG LQWDNH$ERXW ±RIWKHLQVSLUHGOHDGLVDEVRUEHGE\WKHERG\DQGWKHUHVWLV H[FUHWHG $XWRPRELOH H[KDXVWV HPLW H[WUHPHO\ VPDOO OHDG SDUWLFOHV RI  —P ZKLFKDUHGHSRVLWHGLQWKHOXQJV 7KHFXUUHQWOHDGEXUGHQRIWKHKXPDQERG\LVDERXW±—JSHUJRI WKHZKROHEORRG/HDGLVHVVHQWLDOO\DFXPXODWLYHSRLVRQ$W ±—JJLQ EORRGOHDGFDXVHVDQDHPLDFRQVWLSDWLRQDQGDEGRPLQDOFUDPSV&KURQLFH[SRVXUH WROHDGUHVXOWVLQWKHZHDNQLQJRIH[WHQVRUPXVFOHVRIKDQGVDQGIHHW 2UJDQLFOHDGDIIHFWVHPRWLRQDOVWDELOLW\DFFRPSDQLHGE\KDOOXFLQDWLRQVLPSDLUHG YLVLRQDQGKHDULQJ$WORZHUFRQFHQWUDWLRQVWKH\FDXVHKHDGDFKHVJHQHUDOIDWLJXH DQGGHSUHVVLRQ,QRUJDQLFOHDGLQFUHDVHVEORRGSUHVVXUHGLVWXUEVWKHPHWDEROLVP RIYLWDPLQ'DQGDIIHFWVNLGQH\V>@

 (IIHFW RQ 3ODQWV

 (IIHFW RQ 3ODQWV

+XPDQ LQWDNH RI OHDG LV IDFLOLWDWHG E\ SODQWV 0RVW RI WKH SODQWV FDQQRW HDVLO\ DFFHVVOHDGEHFDXVHLWLVLQVROXEOHDQGWLJKWO\ERXQGWRWKHVRLOSDUWLFOHV+RZHYHU DLUERUQHOHDGHDVLO\HQWHUVWKHSODQWWKURXJKWKHVWRPDWDDVRUJDQLFFRPSOH[HV /HDGOHYHOVLQOHWWXFHVEHHWURRWVDQGSRWDWRKDYHVKRZQFRQVLVWHQWLQFUHDVHLQ XUEDQVDPSOHVFRPSDUHGWRUXUDOVDPSOHV>@3EJHQHUDWHGE\WKHGHFD\RI 3ELVDEHPLWWHU,WKDVDKDOIOLIHRI\HDUV

+XPDQ LQWDNH RI OHDG LV IDFLOLWDWHG E\ SODQWV 0RVW RI WKH SODQWV FDQQRW HDVLO\ DFFHVVOHDGEHFDXVHLWLVLQVROXEOHDQGWLJKWO\ERXQGWRWKHVRLOSDUWLFOHV+RZHYHU DLUERUQHOHDGHDVLO\HQWHUVWKHSODQWWKURXJKWKHVWRPDWDDVRUJDQLFFRPSOH[HV /HDGOHYHOVLQOHWWXFHVEHHWURRWVDQGSRWDWRKDYHVKRZQFRQVLVWHQWLQFUHDVHLQ XUEDQVDPSOHVFRPSDUHGWRUXUDOVDPSOHV>@3EJHQHUDWHGE\WKHGHFD\RI 3ELVDEHPLWWHU,WKDVDKDOIOLIHRI\HDUV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 /($'

 /($'

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

 (IIHFW +XPDQV

 (IIHFW +XPDQV

$YDVWERG\RIWR[LFRORJLFDOOLWHUDWXUHH[LVWVRQOHDG%DVLFDOO\OHDGLVDQHXURWR[LQ /HDG SRLVRQLQJ UHVXOWV LQ DQDHPLD FRQYXOVLRQV GHOLULXP FRPD VHYHUH DQG LUUHYHUVLEOHEUDLQGDPDJHIROORZHGE\GHDWK0D[LPXPKXPDQLQWDNHRIOHDGLV WKURXJK IRRG $LUERUQH OHDG LQWDNH FRQVWLWXWHV DERXW  ± RI WKH WRWDO OHDG LQWDNH$ERXW ±RIWKHLQVSLUHGOHDGLVDEVRUEHGE\WKHERG\DQGWKHUHVWLV H[FUHWHG $XWRPRELOH H[KDXVWV HPLW H[WUHPHO\ VPDOO OHDG SDUWLFOHV RI  —P ZKLFKDUHGHSRVLWHGLQWKHOXQJV 7KHFXUUHQWOHDGEXUGHQRIWKHKXPDQERG\LVDERXW±—JSHUJRI WKHZKROHEORRG/HDGLVHVVHQWLDOO\DFXPXODWLYHSRLVRQ$W ±—JJLQ EORRGOHDGFDXVHVDQDHPLDFRQVWLSDWLRQDQGDEGRPLQDOFUDPSV&KURQLFH[SRVXUH WROHDGUHVXOWVLQWKHZHDNQLQJRIH[WHQVRUPXVFOHVRIKDQGVDQGIHHW 2UJDQLFOHDGDIIHFWVHPRWLRQDOVWDELOLW\DFFRPSDQLHGE\KDOOXFLQDWLRQVLPSDLUHG YLVLRQDQGKHDULQJ$WORZHUFRQFHQWUDWLRQVWKH\FDXVHKHDGDFKHVJHQHUDOIDWLJXH DQGGHSUHVVLRQ,QRUJDQLFOHDGLQFUHDVHVEORRGSUHVVXUHGLVWXUEVWKHPHWDEROLVP RIYLWDPLQ'DQGDIIHFWVNLGQH\V>@

$YDVWERG\RIWR[LFRORJLFDOOLWHUDWXUHH[LVWVRQOHDG%DVLFDOO\OHDGLVDQHXURWR[LQ /HDG SRLVRQLQJ UHVXOWV LQ DQDHPLD FRQYXOVLRQV GHOLULXP FRPD VHYHUH DQG LUUHYHUVLEOHEUDLQGDPDJHIROORZHGE\GHDWK0D[LPXPKXPDQLQWDNHRIOHDGLV WKURXJK IRRG $LUERUQH OHDG LQWDNH FRQVWLWXWHV DERXW  ± RI WKH WRWDO OHDG LQWDNH$ERXW ±RIWKHLQVSLUHGOHDGLVDEVRUEHGE\WKHERG\DQGWKHUHVWLV H[FUHWHG $XWRPRELOH H[KDXVWV HPLW H[WUHPHO\ VPDOO OHDG SDUWLFOHV RI  —P ZKLFKDUHGHSRVLWHGLQWKHOXQJV 7KHFXUUHQWOHDGEXUGHQRIWKHKXPDQERG\LVDERXW±—JSHUJRI WKHZKROHEORRG/HDGLVHVVHQWLDOO\DFXPXODWLYHSRLVRQ$W ±—JJLQ EORRGOHDGFDXVHVDQDHPLDFRQVWLSDWLRQDQGDEGRPLQDOFUDPSV&KURQLFH[SRVXUH WROHDGUHVXOWVLQWKHZHDNQLQJRIH[WHQVRUPXVFOHVRIKDQGVDQGIHHW 2UJDQLFOHDGDIIHFWVHPRWLRQDOVWDELOLW\DFFRPSDQLHGE\KDOOXFLQDWLRQVLPSDLUHG YLVLRQDQGKHDULQJ$WORZHUFRQFHQWUDWLRQVWKH\FDXVHKHDGDFKHVJHQHUDOIDWLJXH DQGGHSUHVVLRQ,QRUJDQLFOHDGLQFUHDVHVEORRGSUHVVXUHGLVWXUEVWKHPHWDEROLVP RIYLWDPLQ'DQGDIIHFWVNLGQH\V>@

 (IIHFW RQ 3ODQWV

 (IIHFW RQ 3ODQWV

+XPDQ LQWDNH RI OHDG LV IDFLOLWDWHG E\ SODQWV 0RVW RI WKH SODQWV FDQQRW HDVLO\ DFFHVVOHDGEHFDXVHLWLVLQVROXEOHDQGWLJKWO\ERXQGWRWKHVRLOSDUWLFOHV+RZHYHU DLUERUQHOHDGHDVLO\HQWHUVWKHSODQWWKURXJKWKHVWRPDWDDVRUJDQLFFRPSOH[HV /HDGOHYHOVLQOHWWXFHVEHHWURRWVDQGSRWDWRKDYHVKRZQFRQVLVWHQWLQFUHDVHLQ XUEDQVDPSOHVFRPSDUHGWRUXUDOVDPSOHV>@3EJHQHUDWHGE\WKHGHFD\RI 3ELVDEHPLWWHU,WKDVDKDOIOLIHRI\HDUV

+XPDQ LQWDNH RI OHDG LV IDFLOLWDWHG E\ SODQWV 0RVW RI WKH SODQWV FDQQRW HDVLO\ DFFHVVOHDGEHFDXVHLWLVLQVROXEOHDQGWLJKWO\ERXQGWRWKHVRLOSDUWLFOHV+RZHYHU DLUERUQHOHDGHDVLO\HQWHUVWKHSODQWWKURXJKWKHVWRPDWDDVRUJDQLFFRPSOH[HV /HDGOHYHOVLQOHWWXFHVEHHWURRWVDQGSRWDWRKDYHVKRZQFRQVLVWHQWLQFUHDVHLQ XUEDQVDPSOHVFRPSDUHGWRUXUDOVDPSOHV>@3EJHQHUDWHGE\WKHGHFD\RI 3ELVDEHPLWWHU,WKDVDKDOIOLIHRI\HDUV

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



 $56(1,&

 $56(1,&

$UVHQLFLVDNQRZQFDUFLQRJHQ,WLVWKHRQO\HOHPHQWWKDWKDVQRNQRZQSK\VLRORJLFDO UROHLQWKHKXPDQERG\,QDVXUYH\FRQGXFWHGDPRQJLQGXVWULDOZRUNHUVH[SRVHG WRDUVHQLFWULR[LGHLQYROYLQJVXEMHFWVPRUHWKDQSHRSOHKDGGLHGGXHWR H[SRVXUH WR DUVHQLF 6PHOWLQJ ZRUNHUV VXIIHUHG IURP OXQJ FDQFHU DQG RWKHU FDXVHV >@

$UVHQLFLVDNQRZQFDUFLQRJHQ,WLVWKHRQO\HOHPHQWWKDWKDVQRNQRZQSK\VLRORJLFDO UROHLQWKHKXPDQERG\,QDVXUYH\FRQGXFWHGDPRQJLQGXVWULDOZRUNHUVH[SRVHG WRDUVHQLFWULR[LGHLQYROYLQJVXEMHFWVPRUHWKDQSHRSOHKDGGLHGGXHWR H[SRVXUH WR DUVHQLF 6PHOWLQJ ZRUNHUV VXIIHUHG IURP OXQJ FDQFHU DQG RWKHU FDXVHV >@

 &$'0,80

 &$'0,80

1DWXUDOFDGPLXPOHYHOLQWKHDLULV—JP+LJKHUYDOXHVXSWR—JP KDYHEHHQUHSRUWHGDURXQG]LQFVPHOWHUV&DGPLXPLVDSRWHQWLDOKHDOWKKD]DUG,W LVSUHVHQWLQWKHDLUDQGSDUWLFXODUO\LQFLJDUHWWHVPRNH9HU\OLWWOHLVNQRZQDERXW WKHVRXUFHVDQGVLQNVRIFDGPLXPLQWKHDWPRVSKHUH,WKDVDYHU\ORQJKDOIOLIH DQGKHQFHWHQGVWRDFFXPXODWHLQWKHKXPDQERG\ &DGPLXP LQKLELWV WKH SHUIRUPDQFH RI FHUWDLQ HQ]\PHV DQG SURGXFHV KLJK EORRGSUHVVXUH&DGPLXPIXPHVFDXVHFDUGLRYDVFXODUGLVHDVHV,WDOVRLQWHUIHUHV ZLWK]LQFDQGFRSSHUPHWDEROLVP&KURQLFH[SRVXUHWRFDGPLXPFDXVHVOLYHUDQG NLGQH\GDPDJHOHDGLQJWRGHDWK>@

1DWXUDOFDGPLXPOHYHOLQWKHDLULV—JP+LJKHUYDOXHVXSWR—JP KDYHEHHQUHSRUWHGDURXQG]LQFVPHOWHUV&DGPLXPLVDSRWHQWLDOKHDOWKKD]DUG,W LVSUHVHQWLQWKHDLUDQGSDUWLFXODUO\LQFLJDUHWWHVPRNH9HU\OLWWOHLVNQRZQDERXW WKHVRXUFHVDQGVLQNVRIFDGPLXPLQWKHDWPRVSKHUH,WKDVDYHU\ORQJKDOIOLIH DQGKHQFHWHQGVWRDFFXPXODWHLQWKHKXPDQERG\ &DGPLXP LQKLELWV WKH SHUIRUPDQFH RI FHUWDLQ HQ]\PHV DQG SURGXFHV KLJK EORRGSUHVVXUH&DGPLXPIXPHVFDXVHFDUGLRYDVFXODUGLVHDVHV,WDOVRLQWHUIHUHV ZLWK]LQFDQGFRSSHUPHWDEROLVP&KURQLFH[SRVXUHWRFDGPLXPFDXVHVOLYHUDQG NLGQH\GDPDJHOHDGLQJWRGHDWK>@

 1,&.(/

 1,&.(/

0RVWLPSRUWDQWDQGWR[LFFRPSRXQGRIQLFNHOLVWKHQLFNHOFDUERQ\OV\QWKHVL]HG IURP WKH UHDFWLRQ RI ILQHO\ GLYLGHG PHWDO SDUWLFOHV DQG FDUERQ PRQR[LGH ,W LV IRUPHGLQWREDFFRVPRNHDOVR2QFHLQVSLUHGQLFNHOFDUERQ\OEUHDNVGRZQDQG UHGHSRVLWVWKHPHWDORQWKHOXQJVXUIDFHV1LFNHOFDUERQ\OFDXVHVFKDQJHVLQWKH DOYHROLRIWKHOXQJVUHVSLUDWRU\GDPDJHV\PSWRPV

0RVWLPSRUWDQWDQGWR[LFFRPSRXQGRIQLFNHOLVWKHQLFNHOFDUERQ\OV\QWKHVL]HG IURP WKH UHDFWLRQ RI ILQHO\ GLYLGHG PHWDO SDUWLFOHV DQG FDUERQ PRQR[LGH ,W LV IRUPHGLQWREDFFRVPRNHDOVR2QFHLQVSLUHGQLFNHOFDUERQ\OEUHDNVGRZQDQG UHGHSRVLWVWKHPHWDORQWKHOXQJVXUIDFHV1LFNHOFDUERQ\OFDXVHVFKDQJHVLQWKH DOYHROLRIWKHOXQJVUHVSLUDWRU\GDPDJHV\PSWRPV

 0(5&85
@

 &$'0,80

 &$'0,80

1DWXUDOFDGPLXPOHYHOLQWKHDLULV—JP+LJKHUYDOXHVXSWR—JP KDYHEHHQUHSRUWHGDURXQG]LQFVPHOWHUV&DGPLXPLVDSRWHQWLDOKHDOWKKD]DUG,W LVSUHVHQWLQWKHDLUDQGSDUWLFXODUO\LQFLJDUHWWHVPRNH9HU\OLWWOHLVNQRZQDERXW WKHVRXUFHVDQGVLQNVRIFDGPLXPLQWKHDWPRVSKHUH,WKDVDYHU\ORQJKDOIOLIH DQGKHQFHWHQGVWRDFFXPXODWHLQWKHKXPDQERG\ &DGPLXP LQKLELWV WKH SHUIRUPDQFH RI FHUWDLQ HQ]\PHV DQG SURGXFHV KLJK EORRGSUHVVXUH&DGPLXPIXPHVFDXVHFDUGLRYDVFXODUGLVHDVHV,WDOVRLQWHUIHUHV ZLWK]LQFDQGFRSSHUPHWDEROLVP&KURQLFH[SRVXUHWRFDGPLXPFDXVHVOLYHUDQG NLGQH\GDPDJHOHDGLQJWRGHDWK>@

1DWXUDOFDGPLXPOHYHOLQWKHDLULV—JP+LJKHUYDOXHVXSWR—JP KDYHEHHQUHSRUWHGDURXQG]LQFVPHOWHUV&DGPLXPLVDSRWHQWLDOKHDOWKKD]DUG,W LVSUHVHQWLQWKHDLUDQGSDUWLFXODUO\LQFLJDUHWWHVPRNH9HU\OLWWOHLVNQRZQDERXW WKHVRXUFHVDQGVLQNVRIFDGPLXPLQWKHDWPRVSKHUH,WKDVDYHU\ORQJKDOIOLIH DQGKHQFHWHQGVWRDFFXPXODWHLQWKHKXPDQERG\ &DGPLXP LQKLELWV WKH SHUIRUPDQFH RI FHUWDLQ HQ]\PHV DQG SURGXFHV KLJK EORRGSUHVVXUH&DGPLXPIXPHVFDXVHFDUGLRYDVFXODUGLVHDVHV,WDOVRLQWHUIHUHV ZLWK]LQFDQGFRSSHUPHWDEROLVP&KURQLFH[SRVXUHWRFDGPLXPFDXVHVOLYHUDQG NLGQH\GDPDJHOHDGLQJWRGHDWK>@

 1,&.(/

 1,&.(/

0RVWLPSRUWDQWDQGWR[LFFRPSRXQGRIQLFNHOLVWKHQLFNHOFDUERQ\OV\QWKHVL]HG IURP WKH UHDFWLRQ RI ILQHO\ GLYLGHG PHWDO SDUWLFOHV DQG FDUERQ PRQR[LGH ,W LV IRUPHGLQWREDFFRVPRNHDOVR2QFHLQVSLUHGQLFNHOFDUERQ\OEUHDNVGRZQDQG UHGHSRVLWVWKHPHWDORQWKHOXQJVXUIDFHV1LFNHOFDUERQ\OFDXVHVFKDQJHVLQWKH DOYHROLRIWKHOXQJVUHVSLUDWRU\GDPDJHV\PSWRPV

0RVWLPSRUWDQWDQGWR[LFFRPSRXQGRIQLFNHOLVWKHQLFNHOFDUERQ\OV\QWKHVL]HG IURP WKH UHDFWLRQ RI ILQHO\ GLYLGHG PHWDO SDUWLFOHV DQG FDUERQ PRQR[LGH ,W LV IRUPHGLQWREDFFRVPRNHDOVR2QFHLQVSLUHGQLFNHOFDUERQ\OEUHDNVGRZQDQG UHGHSRVLWVWKHPHWDORQWKHOXQJVXUIDFHV1LFNHOFDUERQ\OFDXVHVFKDQJHVLQWKH DOYHROLRIWKHOXQJVUHVSLUDWRU\GDPDJHV\PSWRPV

 0(5&85
@

 %(5@

 $6%(6726

 $6%(6726

$VEHVWRVLQWKHDWPRVSKHUHFRPHVIURPWKHPHFKDQLFDOGLVLQWHJUDWLRQRIWKHSUHVVHG SURGXFWVVXFKDVLQVXODWHGPDWHULDOVFHPHQWEUDNHOLQLQJHWF 7KHWHUPµDVEHVWRV¶UHIHUVWRDQXPEHURIK\GUDWHGVLOLFDWHVILEUHV&KU\VROLWH LV D PDMRU DVEHVWRV XVHG LQ URRILQJ DQG WH[WLOH LQGXVWU\ 7KH ILEUHV OLQH WKH PHPEUDQHV RI WKH OXQJV DQG DEGRPHQ OHDGLQJ WR DQ LQFXUDEOH DQG IDWDO FDQFHU UHIHUUHGWRDVPHVRWKHOLRPD ,QKDODWLRQRIDVEHVWRVGXVWRUILEUHVFDXVHVDGLVDEOLQJOXQJGLVHDVHNQRZQDV DVEHVWRVLV7KHGLVHDVHLVFKDUDFWHUL]HGE\SOHXUDOFDOFLILFDWLRQ>@

$VEHVWRVLQWKHDWPRVSKHUHFRPHVIURPWKHPHFKDQLFDOGLVLQWHJUDWLRQRIWKHSUHVVHG SURGXFWVVXFKDVLQVXODWHGPDWHULDOVFHPHQWEUDNHOLQLQJHWF 7KHWHUPµDVEHVWRV¶UHIHUVWRDQXPEHURIK\GUDWHGVLOLFDWHVILEUHV&KU\VROLWH LV D PDMRU DVEHVWRV XVHG LQ URRILQJ DQG WH[WLOH LQGXVWU\ 7KH ILEUHV OLQH WKH PHPEUDQHV RI WKH OXQJV DQG DEGRPHQ OHDGLQJ WR DQ LQFXUDEOH DQG IDWDO FDQFHU UHIHUUHGWRDVPHVRWKHOLRPD ,QKDODWLRQRIDVEHVWRVGXVWRUILEUHVFDXVHVDGLVDEOLQJOXQJGLVHDVHNQRZQDV DVEHVWRVLV7KHGLVHDVHLVFKDUDFWHUL]HGE\SOHXUDOFDOFLILFDWLRQ>@

 27+(5 72;,& 68%67$1&(6

 27+(5 72;,& 68%67$1&(6

6HYHUDORWKHUPHWDOOLFFRPSRXQGVVXFKDVFKURPLXPVHOLQLXPEURPLQHDQWLPRQ\ ELVPXWK HWF HQWHU RXU DWPRVSKHUH WKURXJK DQWKURSRJHQLF DFWLYLWLHV +RZHYHU VHULRXVHYDOXDWLRQRIWKHLUWR[LFDQGPHWDEROLFHIIHFWVDUHODFNLQJ ,Q DGGLWLRQ WKHUH DUH PRUH WKDQ  RUJDQLF FRPSRXQGV DQG PDQ\ PRUH RUJDQRPHWDOOLFFRPSRXQGVZKLFKKDYHDVSHFLILFUROHLQWKHKXPDQPHWDEROLVP 7KHUHDGHULVUHIHUUHGWRPRUHDGYDQFHGWH[WVIRUVSHFLILFGHWDLOV

6HYHUDORWKHUPHWDOOLFFRPSRXQGVVXFKDVFKURPLXPVHOLQLXPEURPLQHDQWLPRQ\ ELVPXWK HWF HQWHU RXU DWPRVSKHUH WKURXJK DQWKURSRJHQLF DFWLYLWLHV +RZHYHU VHULRXVHYDOXDWLRQRIWKHLUWR[LFDQGPHWDEROLFHIIHFWVDUHODFNLQJ ,Q DGGLWLRQ WKHUH DUH PRUH WKDQ  RUJDQLF FRPSRXQGV DQG PDQ\ PRUH RUJDQRPHWDOOLFFRPSRXQGVZKLFKKDYHDVSHFLILFUROHLQWKHKXPDQPHWDEROLVP 7KHUHDGHULVUHIHUUHGWRPRUHDGYDQFHGWH[WVIRUVSHFLILFGHWDLOV

48(67,216

48(67,216

 ([SODLQWKHHIIHFWRI&2DQG62LQWDNHRQKXPDQEHLQJV  :ULWHVKRUWQRWHVRQD UDGLDWLRQKD]DUGVE LQGRRUSROOXWLRQRIRUJDQLF YDSRXUV

 ([SODLQWKHHIIHFWRI&2DQG62LQWDNHRQKXPDQEHLQJV  :ULWHVKRUWQRWHVRQD UDGLDWLRQKD]DUGVE LQGRRUSROOXWLRQRIRUJDQLF YDSRXUV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

&KURQLFSRLVRQLQJRIPHUFXU\UHVXOWVLQQHXURORJLFDOGDPDJHFKURPRVRPDO DEHUUDWLRQVDQGHYHQGHDWK>@

&KURQLFSRLVRQLQJRIPHUFXU\UHVXOWVLQQHXURORJLFDOGDPDJHFKURPRVRPDO DEHUUDWLRQVDQGHYHQGHDWK>@

 %(5@

 $6%(6726

 $6%(6726

$VEHVWRVLQWKHDWPRVSKHUHFRPHVIURPWKHPHFKDQLFDOGLVLQWHJUDWLRQRIWKHSUHVVHG SURGXFWVVXFKDVLQVXODWHGPDWHULDOVFHPHQWEUDNHOLQLQJHWF 7KHWHUPµDVEHVWRV¶UHIHUVWRDQXPEHURIK\GUDWHGVLOLFDWHVILEUHV&KU\VROLWH LV D PDMRU DVEHVWRV XVHG LQ URRILQJ DQG WH[WLOH LQGXVWU\ 7KH ILEUHV OLQH WKH PHPEUDQHV RI WKH OXQJV DQG DEGRPHQ OHDGLQJ WR DQ LQFXUDEOH DQG IDWDO FDQFHU UHIHUUHGWRDVPHVRWKHOLRPD ,QKDODWLRQRIDVEHVWRVGXVWRUILEUHVFDXVHVDGLVDEOLQJOXQJGLVHDVHNQRZQDV DVEHVWRVLV7KHGLVHDVHLVFKDUDFWHUL]HGE\SOHXUDOFDOFLILFDWLRQ>@

$VEHVWRVLQWKHDWPRVSKHUHFRPHVIURPWKHPHFKDQLFDOGLVLQWHJUDWLRQRIWKHSUHVVHG SURGXFWVVXFKDVLQVXODWHGPDWHULDOVFHPHQWEUDNHOLQLQJHWF 7KHWHUPµDVEHVWRV¶UHIHUVWRDQXPEHURIK\GUDWHGVLOLFDWHVILEUHV&KU\VROLWH LV D PDMRU DVEHVWRV XVHG LQ URRILQJ DQG WH[WLOH LQGXVWU\ 7KH ILEUHV OLQH WKH PHPEUDQHV RI WKH OXQJV DQG DEGRPHQ OHDGLQJ WR DQ LQFXUDEOH DQG IDWDO FDQFHU UHIHUUHGWRDVPHVRWKHOLRPD ,QKDODWLRQRIDVEHVWRVGXVWRUILEUHVFDXVHVDGLVDEOLQJOXQJGLVHDVHNQRZQDV DVEHVWRVLV7KHGLVHDVHLVFKDUDFWHUL]HGE\SOHXUDOFDOFLILFDWLRQ>@

 27+(5 72;,& 68%67$1&(6

 27+(5 72;,& 68%67$1&(6

6HYHUDORWKHUPHWDOOLFFRPSRXQGVVXFKDVFKURPLXPVHOLQLXPEURPLQHDQWLPRQ\ ELVPXWK HWF HQWHU RXU DWPRVSKHUH WKURXJK DQWKURSRJHQLF DFWLYLWLHV +RZHYHU VHULRXVHYDOXDWLRQRIWKHLUWR[LFDQGPHWDEROLFHIIHFWVDUHODFNLQJ ,Q DGGLWLRQ WKHUH DUH PRUH WKDQ  RUJDQLF FRPSRXQGV DQG PDQ\ PRUH RUJDQRPHWDOOLFFRPSRXQGVZKLFKKDYHDVSHFLILFUROHLQWKHKXPDQPHWDEROLVP 7KHUHDGHULVUHIHUUHGWRPRUHDGYDQFHGWH[WVIRUVSHFLILFGHWDLOV

6HYHUDORWKHUPHWDOOLFFRPSRXQGVVXFKDVFKURPLXPVHOLQLXPEURPLQHDQWLPRQ\ ELVPXWK HWF HQWHU RXU DWPRVSKHUH WKURXJK DQWKURSRJHQLF DFWLYLWLHV +RZHYHU VHULRXVHYDOXDWLRQRIWKHLUWR[LFDQGPHWDEROLFHIIHFWVDUHODFNLQJ ,Q DGGLWLRQ WKHUH DUH PRUH WKDQ  RUJDQLF FRPSRXQGV DQG PDQ\ PRUH RUJDQRPHWDOOLFFRPSRXQGVZKLFKKDYHDVSHFLILFUROHLQWKHKXPDQPHWDEROLVP 7KHUHDGHULVUHIHUUHGWRPRUHDGYDQFHGWH[WVIRUVSHFLILFGHWDLOV

48(67,216

48(67,216

 ([SODLQWKHHIIHFWRI&2DQG62LQWDNHRQKXPDQEHLQJV  :ULWHVKRUWQRWHVRQD UDGLDWLRQKD]DUGVE LQGRRUSROOXWLRQRIRUJDQLF YDSRXUV

 ([SODLQWKHHIIHFWRI&2DQG62LQWDNHRQKXPDQEHLQJV  :ULWHVKRUWQRWHVRQD UDGLDWLRQKD]DUGVE LQGRRUSROOXWLRQRIRUJDQLF YDSRXUV

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



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

0DJQLWXGHDQG(IIHFWVRI$LU3ROOXWLRQ



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

 /% /DYH DQG (3 6HVWHLQ ³$LU 3ROOXWLRQ DQG +XPDQ +HDOWK 6FLHQFH´  ±  '/&RIILQ³$LU3ROOXWLRQ3UHVHQWDQG)XWXUH7KUHDWWR0DQDQGKLV(QYLURQPHQW´ $GYDQFHVLQ(QYLURQ6FLDQG7HFK(G-13LWWVDQG5&0HWFDOI9RO:LOH\ ,QWHUVFLHQFH1HZ@7KHZHLJKWHGDYHUDJHRIDSROOXWDQWLVGHWHUPLQHGE\DSURFHVV RIQXPHULFDOPDQLSXODWLRQRIHDFKSDUDPHWHUDUULYHGDWE\DWUDQVIRUPDWLRQIXQFWLRQ )LJXUHVKRZVDVLPSOHSURFHVVRILQGH[JHQHUDWLRQ

$QDLUSROOXWLRQLQGH[FDQEHGHILQHGDV³7KHZHLJKWHGDYHUDJHRILQGLYLGXDODLU SROOXWLRQSDUDPHWHUVLQWRDVLQJOHQXPEHURUDVHWRIQXPEHUV´$ZHLJKWHGDYHUDJH LVDQXPEHUWKDWUHSUHVHQWVWKHLPSRUWDQFHDQGH[WHQWRIWKHGHVLUHGSROOXWDQWLQD JLYHQVFHQDULR>@7KHZHLJKWHGDYHUDJHRIDSROOXWDQWLVGHWHUPLQHGE\DSURFHVV RIQXPHULFDOPDQLSXODWLRQRIHDFKSDUDPHWHUDUULYHGDWE\DWUDQVIRUPDWLRQIXQFWLRQ )LJXUHVKRZVDVLPSOHSURFHVVRILQGH[JHQHUDWLRQ

Parameter x1

Parameter x1

Parameter x2 Parameter x3

Transformation g(x1, x2, x3, ... xn)

Parameter x2 Pollution index

Parameter xn

Parameter x3

Transformation g(x1, x2, x3, ... xn)

Pollution index

Parameter xn

)LJ$LUSROOXWLRQLQGH[JHQHUDWLRQ

)LJ$LUSROOXWLRQLQGH[JHQHUDWLRQ

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

&+$37(5

&+$37(5

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V

,PSOHPHQWDWLRQRIDLUSROOXWLRQVWDQGDUGVJHQHUDWHVHQRUPRXVDPRXQWRIWHFKQLFDO GDWD PRUH VR LI FRPPXQLW\ VXUYH\V DUH URXWLQHO\ XQGHUWDNHQ )RU OD\PHQ DQG SROLF\PDNHUVWKHSUHVHQWDWLRQRIRQO\WKHWHFKQLFDOGDWDFDQEHTXLWHFRQIXVLQJ DQGSURYHWREHYHU\GLIILFXOWWRXQGHUVWDQGDOVR7KHUHIRUHWKHVHGDWDVKRXOGEH FRQVROLGDWHGLQDVLPSOLILHGIRUPDWIRUWKHOD\PDQWRXQGHUVWDQGWKHDLUTXDOLW\ FKDQJHVIURPWLPHWRWLPH,WLVSRVVLEOHWRGHVFULEHYDULRXVSROOXWDQWOHYHOVDVD VLQJOHHQWLW\UDWKHUWKDQDVHULHVRIFRQFHQWUDWLRQVIRUGLIIHUHQWFKHPLFDOVSHFLHV 6XFKDQH[HUFLVHLQFRUSRUDWHVWKHVLJQLILFDQFHRIWKHFRQFHQWUDWLRQVLQWHUPVRI HIIHFWV 7KHVH LQGLUHFW PHWKRGV RI H[SUHVVLQJ SROOXWDQW OHYHOV DUH NQRZQ DV DLU SROOXWLRQLQGLFHV

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

 $,5 32//87,21 ,1'(;

 $,5 32//87,21 ,1'(;

$QDLUSROOXWLRQLQGH[FDQEHGHILQHGDV³7KHZHLJKWHGDYHUDJHRILQGLYLGXDODLU SROOXWLRQSDUDPHWHUVLQWRDVLQJOHQXPEHURUDVHWRIQXPEHUV´$ZHLJKWHGDYHUDJH LVDQXPEHUWKDWUHSUHVHQWVWKHLPSRUWDQFHDQGH[WHQWRIWKHGHVLUHGSROOXWDQWLQD JLYHQVFHQDULR>@7KHZHLJKWHGDYHUDJHRIDSROOXWDQWLVGHWHUPLQHGE\DSURFHVV RIQXPHULFDOPDQLSXODWLRQRIHDFKSDUDPHWHUDUULYHGDWE\DWUDQVIRUPDWLRQIXQFWLRQ )LJXUHVKRZVDVLPSOHSURFHVVRILQGH[JHQHUDWLRQ

$QDLUSROOXWLRQLQGH[FDQEHGHILQHGDV³7KHZHLJKWHGDYHUDJHRILQGLYLGXDODLU SROOXWLRQSDUDPHWHUVLQWRDVLQJOHQXPEHURUDVHWRIQXPEHUV´$ZHLJKWHGDYHUDJH LVDQXPEHUWKDWUHSUHVHQWVWKHLPSRUWDQFHDQGH[WHQWRIWKHGHVLUHGSROOXWDQWLQD JLYHQVFHQDULR>@7KHZHLJKWHGDYHUDJHRIDSROOXWDQWLVGHWHUPLQHGE\DSURFHVV RIQXPHULFDOPDQLSXODWLRQRIHDFKSDUDPHWHUDUULYHGDWE\DWUDQVIRUPDWLRQIXQFWLRQ )LJXUHVKRZVDVLPSOHSURFHVVRILQGH[JHQHUDWLRQ

Parameter x1

Parameter x1

Parameter x2 Parameter x3

Transformation g(x1, x2, x3, ... xn)

Parameter xn

Parameter x2 Pollution index

Parameter x3

Transformation g(x1, x2, x3, ... xn)

Parameter xn

)LJ$LUSROOXWLRQLQGH[JHQHUDWLRQ

)LJ$LUSROOXWLRQLQGH[JHQHUDWLRQ

Pollution index

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

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

 7KH 3HU &HQW 0HWKRG ,Q WKLV PHWKRG LPSRUWDQW LQGLYLGXDO SROOXWDQWV DUH FRPSDUHGZLWKWKHLUDPELHQWDLUTXDOLW\VWDQGDUGVLQSHUFHQWWHUPVDQGWKHDLU SROOXWLRQLQGH[$3, LVFDOFXODWHGE\WDNLQJWKHLUDYHUDJH7KLVLVDVLPSOHPHWKRG DQGHDV\WRFDOFXODWH)RUH[DPSOHLIWKUHHSROOXWDQWVDUHFRQVLGHUHGWKHQ$3,LV JLYHQE\

 7KH 3HU &HQW 0HWKRG ,Q WKLV PHWKRG LPSRUWDQW LQGLYLGXDO SROOXWDQWV DUH FRPSDUHGZLWKWKHLUDPELHQWDLUTXDOLW\VWDQGDUGVLQSHUFHQWWHUPVDQGWKHDLU SROOXWLRQLQGH[$3, LVFDOFXODWHGE\WDNLQJWKHLUDYHUDJH7KLVLVDVLPSOHPHWKRG DQGHDV\WRFDOFXODWH)RUH[DPSOHLIWKUHHSROOXWDQWVDUHFRQVLGHUHGWKHQ$3,LV JLYHQE\

  ¦ $L L 



&L  6L u 



$3, ZKHUH

$L

  ¦ $L L 



&L  6L u 



$3, ZKHUH

$L

ZKHUH&LLVWKHFRQFHQWUDWLRQRIWKHSROOXWDQWLDQG6LLVWKHVWDQGDUGYDOXHRIWKH SROOXWDQWLQDPELHQWDLUDQG,LVWKHSROOXWLRQLQGH[

ZKHUH&LLVWKHFRQFHQWUDWLRQRIWKHSROOXWDQWLDQG6LLVWKHVWDQGDUGYDOXHRIWKH SROOXWDQWLQDPELHQWDLUDQG,LVWKHSROOXWLRQLQGH[

7KH5DWLR0HWKRG,QWKLVPHWKRGUDWLRVRILPSRUWDQWDLUSROOXWDQWVWRWKHLU VWDQGDUGYDOXHVDUHFDOFXODWHGDQGWKHDYHUDJHRIWKHLUVXPLVPXOWLSOLHGE\ )RUH[DPSOHLIZHFKRRVHVXOSKXUGLR[LGHFDUERQPRQR[LGHDQGSDUWLFXODWHPDWWHU WKHDLUSROOXWLRQLQGH[LVJLYHQE\

7KH5DWLR0HWKRG,QWKLVPHWKRGUDWLRVRILPSRUWDQWDLUSROOXWDQWVWRWKHLU VWDQGDUGYDOXHVDUHFDOFXODWHGDQGWKHDYHUDJHRIWKHLUVXPLVPXOWLSOLHGE\ )RUH[DPSOHLIZHFKRRVHVXOSKXUGLR[LGHFDUERQPRQR[LGHDQGSDUWLFXODWHPDWWHU WKHDLUSROOXWLRQLQGH[LVJLYHQE\

$3,

, , º  ª ,62   &2  30 » u  «  ¬« 6 62 6&2 630 ¼»

$3,



, , º  ª ,62   &2  30 » u  «  ¬« 6 62 6&2 630 ¼»



ZKHUH&UHSUHVHQWVWKHLQGLYLGXDOYDOXHVDQG6UHSUHVHQWVWKHDPELHQWDLUTXDOLW\ VWDQGDUGVYDOXHV

ZKHUH&UHSUHVHQWVWKHLQGLYLGXDOYDOXHVDQG6UHSUHVHQWVWKHDPELHQWDLUTXDOLW\ VWDQGDUGVYDOXHV

6LQJOH3DUDPHWHU,QGH[$LU3ROOXWLRQ,QGH[LQWKLVFDVHLVEDVHGXSRQDVLQJOH PRVWLPSRUWDQWSDUDPHWHU7KHFKRVHQSDUDPHWHUFRXOGEH62&2630R]RQH RUVLPSO\WKHYLVLELOLW\7KHLQGH[LVGHILQHGDV

6LQJOH3DUDPHWHU,QGH[$LU3ROOXWLRQ,QGH[LQWKLVFDVHLVEDVHGXSRQDVLQJOH PRVWLPSRUWDQWSDUDPHWHU7KHFKRVHQSDUDPHWHUFRXOGEH62&2630R]RQH RUVLPSO\WKHYLVLELOLW\7KHLQGH[LVGHILQHGDV

,62

$3,

662

u 

,62

$3,



662

u 



ZKHUH ,62  DQG 662  DUH WKH PHDVXUHG DQG VWDQGDUG 62 FRQFHQWUDWLRQV LQ WKH   VDPSOHDQGDPELHQWDLU6LPLODUO\WKHLQGH[FDQEHFDOFXODWHGE\WDNLQJSDUWLFXODWH PDWWHUDORQHRUDQ\RWKHUSROOXWDQW

ZKHUH ,62  DQG 662  DUH WKH PHDVXUHG DQG VWDQGDUG 62 FRQFHQWUDWLRQV LQ WKH   VDPSOHDQGDPELHQWDLU6LPLODUO\WKHLQGH[FDQEHFDOFXODWHGE\WDNLQJSDUWLFXODWH PDWWHUDORQHRUDQ\RWKHUSROOXWDQW

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

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

 7KH 3HU &HQW 0HWKRG ,Q WKLV PHWKRG LPSRUWDQW LQGLYLGXDO SROOXWDQWV DUH FRPSDUHGZLWKWKHLUDPELHQWDLUTXDOLW\VWDQGDUGVLQSHUFHQWWHUPVDQGWKHDLU SROOXWLRQLQGH[$3, LVFDOFXODWHGE\WDNLQJWKHLUDYHUDJH7KLVLVDVLPSOHPHWKRG DQGHDV\WRFDOFXODWH)RUH[DPSOHLIWKUHHSROOXWDQWVDUHFRQVLGHUHGWKHQ$3,LV JLYHQE\

 7KH 3HU &HQW 0HWKRG ,Q WKLV PHWKRG LPSRUWDQW LQGLYLGXDO SROOXWDQWV DUH FRPSDUHGZLWKWKHLUDPELHQWDLUTXDOLW\VWDQGDUGVLQSHUFHQWWHUPVDQGWKHDLU SROOXWLRQLQGH[$3, LVFDOFXODWHGE\WDNLQJWKHLUDYHUDJH7KLVLVDVLPSOHPHWKRG DQGHDV\WRFDOFXODWH)RUH[DPSOHLIWKUHHSROOXWDQWVDUHFRQVLGHUHGWKHQ$3,LV JLYHQE\

  ¦ $L L 



&L  6L u 



$3, ZKHUH

$L

  ¦ $L L 



&L  6L u 



$3, ZKHUH

$L

ZKHUH&LLVWKHFRQFHQWUDWLRQRIWKHSROOXWDQWLDQG6LLVWKHVWDQGDUGYDOXHRIWKH SROOXWDQWLQDPELHQWDLUDQG,LVWKHSROOXWLRQLQGH[

ZKHUH&LLVWKHFRQFHQWUDWLRQRIWKHSROOXWDQWLDQG6LLVWKHVWDQGDUGYDOXHRIWKH SROOXWDQWLQDPELHQWDLUDQG,LVWKHSROOXWLRQLQGH[

7KH5DWLR0HWKRG,QWKLVPHWKRGUDWLRVRILPSRUWDQWDLUSROOXWDQWVWRWKHLU VWDQGDUGYDOXHVDUHFDOFXODWHGDQGWKHDYHUDJHRIWKHLUVXPLVPXOWLSOLHGE\ )RUH[DPSOHLIZHFKRRVHVXOSKXUGLR[LGHFDUERQPRQR[LGHDQGSDUWLFXODWHPDWWHU WKHDLUSROOXWLRQLQGH[LVJLYHQE\

7KH5DWLR0HWKRG,QWKLVPHWKRGUDWLRVRILPSRUWDQWDLUSROOXWDQWVWRWKHLU VWDQGDUGYDOXHVDUHFDOFXODWHGDQGWKHDYHUDJHRIWKHLUVXPLVPXOWLSOLHGE\ )RUH[DPSOHLIZHFKRRVHVXOSKXUGLR[LGHFDUERQPRQR[LGHDQGSDUWLFXODWHPDWWHU WKHDLUSROOXWLRQLQGH[LVJLYHQE\

$3,

, , º  ª ,62   &2  30 » u  «  «¬ 6 62 6&2 630 »¼



$3,

, , º  ª ,62   &2  30 » u  «  «¬ 6 62 6&2 630 »¼



ZKHUH&UHSUHVHQWVWKHLQGLYLGXDOYDOXHVDQG6UHSUHVHQWVWKHDPELHQWDLUTXDOLW\ VWDQGDUGVYDOXHV

ZKHUH&UHSUHVHQWVWKHLQGLYLGXDOYDOXHVDQG6UHSUHVHQWVWKHDPELHQWDLUTXDOLW\ VWDQGDUGVYDOXHV

6LQJOH3DUDPHWHU,QGH[$LU3ROOXWLRQ,QGH[LQWKLVFDVHLVEDVHGXSRQDVLQJOH PRVWLPSRUWDQWSDUDPHWHU7KHFKRVHQSDUDPHWHUFRXOGEH62&2630R]RQH RUVLPSO\WKHYLVLELOLW\7KHLQGH[LVGHILQHGDV

6LQJOH3DUDPHWHU,QGH[$LU3ROOXWLRQ,QGH[LQWKLVFDVHLVEDVHGXSRQDVLQJOH PRVWLPSRUWDQWSDUDPHWHU7KHFKRVHQSDUDPHWHUFRXOGEH62&2630R]RQH RUVLPSO\WKHYLVLELOLW\7KHLQGH[LVGHILQHGDV

$3,

,62 662

u 



ZKHUH ,62  DQG 662  DUH WKH PHDVXUHG DQG VWDQGDUG 62 FRQFHQWUDWLRQV LQ WKH   VDPSOHDQGDPELHQWDLU6LPLODUO\WKHLQGH[FDQEHFDOFXODWHGE\WDNLQJSDUWLFXODWH PDWWHUDORQHRUDQ\RWKHUSROOXWDQW

$3,

,62 662

u 



ZKHUH ,62  DQG 662  DUH WKH PHDVXUHG DQG VWDQGDUG 62 FRQFHQWUDWLRQV LQ WKH   VDPSOHDQGDPELHQWDLU6LPLODUO\WKHLQGH[FDQEHFDOFXODWHGE\WDNLQJSDUWLFXODWH PDWWHUDORQHRUDQ\RWKHUSROOXWDQW

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

7KH6XE,QGLFHV0HWKRG,QWKLVWHFKQLTXHDLUSROOXWLRQLQGH[LVFDOFXODWHGIURP 6XELQGLFHV(DFKVXELQGH[LVDVVLJQHGDQDUELWUDU\UDWLQJIRUGLIIHUHQWUDQJHVRI SROOXWDQWVDVVKRZQLQ7DEOH7KH$3,LVFDOFXODWHGDVWKHVXPRIVXELQGLFHV 7KHIROORZLQJH[DPSOHLOOXVWUDWHVWKHSRLQW

7KH6XE,QGLFHV0HWKRG,QWKLVWHFKQLTXHDLUSROOXWLRQLQGH[LVFDOFXODWHGIURP 6XELQGLFHV(DFKVXELQGH[LVDVVLJQHGDQDUELWUDU\UDWLQJIRUGLIIHUHQWUDQJHVRI SROOXWDQWVDVVKRZQLQ7DEOH7KH$3,LVFDOFXODWHGDVWKHVXPRIVXELQGLFHV 7KHIROORZLQJH[DPSOHLOOXVWUDWHVWKHSRLQW

7DEOH&RPSXWDWLRQRIDLUSROOXWLRQLQGH[

7DEOH&RPSXWDWLRQRIDLUSROOXWLRQLQGH[

&2SSP      

12SSP ± ± ± ± ± ±

2[LGDQWSSP

62SSP

± ± ± ± ± ±

$3,

     ±

9LVLELOLW\NP

6XELQGH[ $L

± ± ± ± ± ±

     

&2SSP      

12SSP ± ± ± ± ± ±

2[LGDQWSSP ± ± ± ± ± ±



¦ $L

$3,



L 

62SSP      ±

9LVLELOLW\NP

6XELQGH[ $L

± ± ± ± ± ±

     



¦ $L



L 

7KHLQWHUSUHWDWLRQRIDLUSROOXWLRQLQGH[IURPDQDO\WLFDOYDOXHVLVVRPHZKDW HPSLULFDO$W\SLFDOUDWLQJVFDOHLVVKRZQLQ7DEOH

7KHLQWHUSUHWDWLRQRIDLUSROOXWLRQLQGH[IURPDQDO\WLFDOYDOXHVLVVRPHZKDW HPSLULFDO$W\SLFDOUDWLQJVFDOHLVVKRZQLQ7DEOH

7DEOH$3,UDWLQJVFDOH

7DEOH$3,UDWLQJVFDOH

,QGH[UDQJH

,QGH[YDOXH

5HPDUNV

,QGH[UDQJH

,QGH[YDOXH

5HPDUNV



&OHDQDLU

*RRG



&OHDQDLU

*RRG



6OLJKWDLUSROOXWLRQ±DFFHSWDEOH

0RGHUDWH



6OLJKWDLUSROOXWLRQ±DFFHSWDEOH

0RGHUDWH

±

0RGHUDWHDLUSROOXWLRQ±XQVDWLVIDFWRU\

$OHUW

±

0RGHUDWHDLUSROOXWLRQ±XQVDWLVIDFWRU\

$OHUW



+HDY\DLUSROOXWLRQ

6HYHUH



+HDY\DLUSROOXWLRQ

6HYHUH

!

6HYHUHDLUSROOXWLRQ

8QKHDOWK\

!

6HYHUHDLUSROOXWLRQ

8QKHDOWK\

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

 7+( 32//87,21 67$1'$5'6 ,1'(;

 7+( 32//87,21 67$1'$5'6 ,1'(;

7R FRPSDUH WKH DLU TXDOLW\ RI YDULRXV XUEDQ DUHDV D SROOXWLRQ VWDQGDUGV LQGH[ 36, ZDVGHYHORSHGLQ7KH36,LQGH[LVXVHGWRDVVHVVWKHSRWHQWLDOWKUHDW

7R FRPSDUH WKH DLU TXDOLW\ RI YDULRXV XUEDQ DUHDV D SROOXWLRQ VWDQGDUGV LQGH[ 36, ZDVGHYHORSHGLQ7KH36,LQGH[LVXVHGWRDVVHVVWKHSRWHQWLDOWKUHDW

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

7KH6XE,QGLFHV0HWKRG,QWKLVWHFKQLTXHDLUSROOXWLRQLQGH[LVFDOFXODWHGIURP 6XELQGLFHV(DFKVXELQGH[LVDVVLJQHGDQDUELWUDU\UDWLQJIRUGLIIHUHQWUDQJHVRI SROOXWDQWVDVVKRZQLQ7DEOH7KH$3,LVFDOFXODWHGDVWKHVXPRIVXELQGLFHV 7KHIROORZLQJH[DPSOHLOOXVWUDWHVWKHSRLQW

7KH6XE,QGLFHV0HWKRG,QWKLVWHFKQLTXHDLUSROOXWLRQLQGH[LVFDOFXODWHGIURP 6XELQGLFHV(DFKVXELQGH[LVDVVLJQHGDQDUELWUDU\UDWLQJIRUGLIIHUHQWUDQJHVRI SROOXWDQWVDVVKRZQLQ7DEOH7KH$3,LVFDOFXODWHGDVWKHVXPRIVXELQGLFHV 7KHIROORZLQJH[DPSOHLOOXVWUDWHVWKHSRLQW

7DEOH&RPSXWDWLRQRIDLUSROOXWLRQLQGH[

7DEOH&RPSXWDWLRQRIDLUSROOXWLRQLQGH[

&2SSP      

12SSP ± ± ± ± ± ±

2[LGDQWSSP

62SSP

± ± ± ± ± ±

$3,

     ±

9LVLELOLW\NP

6XELQGH[ $L

± ± ± ± ± ±

     

&2SSP      

12SSP ± ± ± ± ± ±

2[LGDQWSSP ± ± ± ± ± ±



¦ $L

$3,



L 

62SSP      ±

9LVLELOLW\NP

6XELQGH[ $L

± ± ± ± ± ±

     



¦ $L



L 

7KHLQWHUSUHWDWLRQRIDLUSROOXWLRQLQGH[IURPDQDO\WLFDOYDOXHVLVVRPHZKDW HPSLULFDO$W\SLFDOUDWLQJVFDOHLVVKRZQLQ7DEOH

7KHLQWHUSUHWDWLRQRIDLUSROOXWLRQLQGH[IURPDQDO\WLFDOYDOXHVLVVRPHZKDW HPSLULFDO$W\SLFDOUDWLQJVFDOHLVVKRZQLQ7DEOH

7DEOH$3,UDWLQJVFDOH

7DEOH$3,UDWLQJVFDOH

,QGH[UDQJH

,QGH[YDOXH

5HPDUNV

,QGH[UDQJH

,QGH[YDOXH

5HPDUNV



&OHDQDLU

*RRG



&OHDQDLU

*RRG



6OLJKWDLUSROOXWLRQ±DFFHSWDEOH

0RGHUDWH



6OLJKWDLUSROOXWLRQ±DFFHSWDEOH

0RGHUDWH

±

0RGHUDWHDLUSROOXWLRQ±XQVDWLVIDFWRU\

$OHUW

±

0RGHUDWHDLUSROOXWLRQ±XQVDWLVIDFWRU\

$OHUW



+HDY\DLUSROOXWLRQ

6HYHUH



+HDY\DLUSROOXWLRQ

6HYHUH

!

6HYHUHDLUSROOXWLRQ

8QKHDOWK\

!

6HYHUHDLUSROOXWLRQ

8QKHDOWK\

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

 7+( 32//87,21 67$1'$5'6 ,1'(;

 7+( 32//87,21 67$1'$5'6 ,1'(;

7R FRPSDUH WKH DLU TXDOLW\ RI YDULRXV XUEDQ DUHDV D SROOXWLRQ VWDQGDUGV LQGH[ 36, ZDVGHYHORSHGLQ7KH36,LQGH[LVXVHGWRDVVHVVWKHSRWHQWLDOWKUHDW

7R FRPSDUH WKH DLU TXDOLW\ RI YDULRXV XUEDQ DUHDV D SROOXWLRQ VWDQGDUGV LQGH[ 36, ZDVGHYHORSHGLQ7KH36,LQGH[LVXVHGWRDVVHVVWKHSRWHQWLDOWKUHDW

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

)RUPDW

)RUPDW  3ODFH« 'DWH«« $LUSROOXWLRQ« 5DLQIDOO« 0HDQWHPSHUDWXUHR&

)RUPDW

)RUPDW 

3ODFH« 'DWH« 7KH DLU TXDOLW\ LQGH[ IURP  DP WR  SP ZDV  IRU VXOSKXUGLR[LGH,QGH[YDOXHEHWZHHQLQGLFDWHVJRRG DLUTXDOLW\

)RUPDW

3ODFH« 'DWH«« $LUSROOXWLRQ« 5DLQIDOO« 0HDQWHPSHUDWXUHR&

3ODFH« 'DWH« 7KH DLU TXDOLW\ LQGH[ IURP  DP WR  SP ZDV  IRU VXOSKXUGLR[LGH,QGH[YDOXHEHWZHHQLQGLFDWHVJRRG DLUTXDOLW\

)RUPDW

3ODFH« 'DWH« $LUSROOXWLRQLQGH[ 7KHLQGH[FRPSLOHGDWSXEOLFKHDOWKFHQWUHFRPELQHVWKHPHDVXUHPHQWVDQGHVWLPDWHVIRU FDUERQPRQR[LGHVXOSKXUGLR[LGHDQGSDUWLFXODWHV$3,LQGH[EHWZHHQLVJRRGEHWZHHQ LVVDWLVIDFWRU\EHWZHHQLVXQVDWLVIDFWRU\DQGEHWZHHQLVVHYHUH )RUPDW

3ODFH« 'DWH« $LUSROOXWLRQLQGH[ 7KHLQGH[FRPSLOHGDWSXEOLFKHDOWKFHQWUHFRPELQHVWKHPHDVXUHPHQWVDQGHVWLPDWHVIRU FDUERQPRQR[LGHVXOSKXUGLR[LGHDQGSDUWLFXODWHV$3,LQGH[EHWZHHQLVJRRGEHWZHHQ LVVDWLVIDFWRU\EHWZHHQLVXQVDWLVIDFWRU\DQGEHWZHHQLVVHYHUH )RUPDW

7RPRUURZ¶V SROOXWLRQ IRUHFDVW   PRGHUDWH

7RPRUURZ¶V SROOXWLRQ IRUHFDVW   PRGHUDWH

)LJ3XEOLFDWLRQIRUPDWVRIDLUSROOXWLRQLQGLFHV

)LJ3XEOLFDWLRQIRUPDWVRIDLUSROOXWLRQLQGLFHV

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

7DEOH36,EUHDNSRLQWV

7DEOH36,EUHDNSRLQWV

,QGH[     

K2 —JP

K&2 —JP

763 —JP

K763 —JP

763î62 —JP

K12 —JP

    

    

    

    

 ± ±  

± ± ±  

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

3ODFH« 'DWH«« $LUSROOXWLRQ« 5DLQIDOO« 0HDQWHPSHUDWXUHR&

    

K2 —JP

K&2 —JP

763 —JP

K763 —JP

763î62 —JP

K12 —JP

    

    

    

    

 ± ±  

± ± ±  

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

)RUPDW

)RUPDW 

,QGH[

)RUPDW

)RUPDW 

3ODFH« 'DWH« 7KH DLU TXDOLW\ LQGH[ IURP  DP WR  SP ZDV  IRU VXOSKXUGLR[LGH,QGH[YDOXHEHWZHHQLQGLFDWHVJRRG DLUTXDOLW\

)RUPDW

3ODFH« 'DWH«« $LUSROOXWLRQ« 5DLQIDOO« 0HDQWHPSHUDWXUHR&

3ODFH« 'DWH« 7KH DLU TXDOLW\ LQGH[ IURP  DP WR  SP ZDV  IRU VXOSKXUGLR[LGH,QGH[YDOXHEHWZHHQLQGLFDWHVJRRG DLUTXDOLW\

)RUPDW

3ODFH« 'DWH« $LUSROOXWLRQLQGH[ 7KHLQGH[FRPSLOHGDWSXEOLFKHDOWKFHQWUHFRPELQHVWKHPHDVXUHPHQWVDQGHVWLPDWHVIRU FDUERQPRQR[LGHVXOSKXUGLR[LGHDQGSDUWLFXODWHV$3,LQGH[EHWZHHQLVJRRGEHWZHHQ LVVDWLVIDFWRU\EHWZHHQLVXQVDWLVIDFWRU\DQGEHWZHHQLVVHYHUH )RUPDW

3ODFH« 'DWH« $LUSROOXWLRQLQGH[ 7KHLQGH[FRPSLOHGDWSXEOLFKHDOWKFHQWUHFRPELQHVWKHPHDVXUHPHQWVDQGHVWLPDWHVIRU FDUERQPRQR[LGHVXOSKXUGLR[LGHDQGSDUWLFXODWHV$3,LQGH[EHWZHHQLVJRRGEHWZHHQ LVVDWLVIDFWRU\EHWZHHQLVXQVDWLVIDFWRU\DQGEHWZHHQLVVHYHUH )RUPDW

7RPRUURZ¶V SROOXWLRQ IRUHFDVW   PRGHUDWH

7RPRUURZ¶V SROOXWLRQ IRUHFDVW   PRGHUDWH

)LJ3XEOLFDWLRQIRUPDWVRIDLUSROOXWLRQLQGLFHV

)LJ3XEOLFDWLRQIRUPDWVRIDLUSROOXWLRQLQGLFHV

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

7DEOH36,EUHDNSRLQWV

7DEOH36,EUHDNSRLQWV

,QGH[     

K2 —JP

K&2 —JP

763 —JP

K763 —JP

763î62 —JP

K12 —JP

    

    

    

    

 ± ±  

± ± ±  

,QGH[     

K2 —JP

K&2 —JP

763 —JP

K763 —JP

763î62 —JP

K12 —JP

    

    

    

    

 ± ±  

± ± ±  

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$VLPSOHLOOXVWUDWLRQRI36,FDOFXODWLRQLVJLYHQEHORZ

$VLPSOHLOOXVWUDWLRQRI36,FDOFXODWLRQLVJLYHQEHORZ

([DPSOH

([DPSOH

7KHIROORZLQJFRQFHQWUDWLRQVRIDLUSROOXWDQWVZHUHREWDLQHGIRU1HZ'HOKL 763KRXUV763—JP 2]RQHKRXU—JP  &2KRXUV&2—JP 62KRXUV62—JP

7KHIROORZLQJFRQFHQWUDWLRQVRIDLUSROOXWDQWVZHUHREWDLQHGIRU1HZ'HOKL 763KRXUV763—JP 2]RQHKRXU—JP  &2KRXUV&2—JP 62KRXUV62—JP

7KH FRUUHVSRQGLQJ 36, YDOXHV IRU HDFK RI WKH SROOXWDQW DFFRUGLQJ WR WKH 7DEOHDUH!|DQGUHVSHFWLYHO\

7KH FRUUHVSRQGLQJ 36, YDOXHV IRU HDFK RI WKH SROOXWDQW DFFRUGLQJ WR WKH 7DEOHDUH!|DQGUHVSHFWLYHO\

62î763 î î—JP 7KLVYDOXHLVORZHUWKDQî +RZHYHUWKHUHLVQRVXELQGH[YDOXHIRU62î763+HQFH36,VKRXOGEHFDOFXODWHG IURPWKHYDOXHVFRUUHVSRQGLQJWR&2DQG2RQO\+HQFH

62î763 î î—JP 7KLVYDOXHLVORZHUWKDQî +RZHYHUWKHUHLVQRVXELQGH[YDOXHIRU62î763+HQFH36,VKRXOGEHFDOFXODWHG IURPWKHYDOXHVFRUUHVSRQGLQJWR&2DQG2RQO\+HQFH

         

36,  

         

36,  





6LQFH36,YDOXHRILVJUHDWHUWKDQWKHDLUTXDOLW\LVYHU\XQKHDOWK\DQG DLUSROOXWLRQLQGLFDWHG 7KHJHQHUDOFRUUHODWLRQEHWZHHQKHDOWKHIIHFWVDQG36,QXPEHUVLVVKRZQLQ 7DEOH3LFWRULDOLQWHUSUHWDWLRQRI36,LVVLPSOHU$VHPLFLUFXODUFKDUWIRUYDULRXV 36,YDOXHVFDQEHXVHGDVVKRZQEHORZ

6LQFH36,YDOXHRILVJUHDWHUWKDQWKHDLUTXDOLW\LVYHU\XQKHDOWK\DQG DLUSROOXWLRQLQGLFDWHG 7KHJHQHUDOFRUUHODWLRQEHWZHHQKHDOWKHIIHFWVDQG36,QXPEHUVLVVKRZQLQ 7DEOH3LFWRULDOLQWHUSUHWDWLRQRI36,LVVLPSOHU$VHPLFLUFXODUFKDUWIRUYDULRXV 36,YDOXHVFDQEHXVHGDVVKRZQEHORZ

Very unhealthy

Very unhealthy

lth

y a he

lth

y

Ha

Un

Ha

Un

a he

za

za

rd

rd

300

100

Mo

der

ate

200

50

Good

50

Good

100

Mo

der

s

s

ate

ou

ou

300

200

0

0

500

500

PSI = 350

PSI = 350

)LJ36,FKDUW

)LJ36,FKDUW

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$VLPSOHLOOXVWUDWLRQRI36,FDOFXODWLRQLVJLYHQEHORZ

$VLPSOHLOOXVWUDWLRQRI36,FDOFXODWLRQLVJLYHQEHORZ

([DPSOH

([DPSOH

7KHIROORZLQJFRQFHQWUDWLRQVRIDLUSROOXWDQWVZHUHREWDLQHGIRU1HZ'HOKL 763KRXUV763—JP 2]RQHKRXU—JP  &2KRXUV&2—JP 62KRXUV62—JP

7KHIROORZLQJFRQFHQWUDWLRQVRIDLUSROOXWDQWVZHUHREWDLQHGIRU1HZ'HOKL 763KRXUV763—JP 2]RQHKRXU—JP  &2KRXUV&2—JP 62KRXUV62—JP

7KH FRUUHVSRQGLQJ 36, YDOXHV IRU HDFK RI WKH SROOXWDQW DFFRUGLQJ WR WKH 7DEOHDUH!|DQGUHVSHFWLYHO\

7KH FRUUHVSRQGLQJ 36, YDOXHV IRU HDFK RI WKH SROOXWDQW DFFRUGLQJ WR WKH 7DEOHDUH!|DQGUHVSHFWLYHO\

62î763 î î—JP 7KLVYDOXHLVORZHUWKDQî +RZHYHUWKHUHLVQRVXELQGH[YDOXHIRU62î763+HQFH36,VKRXOGEHFDOFXODWHG IURPWKHYDOXHVFRUUHVSRQGLQJWR&2DQG2RQO\+HQFH

62î763 î î—JP 7KLVYDOXHLVORZHUWKDQî +RZHYHUWKHUHLVQRVXELQGH[YDOXHIRU62î763+HQFH36,VKRXOGEHFDOFXODWHG IURPWKHYDOXHVFRUUHVSRQGLQJWR&2DQG2RQO\+HQFH

         

36,  

         

36,  





6LQFH36,YDOXHRILVJUHDWHUWKDQWKHDLUTXDOLW\LVYHU\XQKHDOWK\DQG DLUSROOXWLRQLQGLFDWHG 7KHJHQHUDOFRUUHODWLRQEHWZHHQKHDOWKHIIHFWVDQG36,QXPEHUVLVVKRZQLQ 7DEOH3LFWRULDOLQWHUSUHWDWLRQRI36,LVVLPSOHU$VHPLFLUFXODUFKDUWIRUYDULRXV 36,YDOXHVFDQEHXVHGDVVKRZQEHORZ

6LQFH36,YDOXHRILVJUHDWHUWKDQWKHDLUTXDOLW\LVYHU\XQKHDOWK\DQG DLUSROOXWLRQLQGLFDWHG 7KHJHQHUDOFRUUHODWLRQEHWZHHQKHDOWKHIIHFWVDQG36,QXPEHUVLVVKRZQLQ 7DEOH3LFWRULDOLQWHUSUHWDWLRQRI36,LVVLPSOHU$VHPLFLUFXODUFKDUWIRUYDULRXV 36,YDOXHVFDQEHXVHGDVVKRZQEHORZ

Very unhealthy

Very unhealthy

lth

y a he

lth

y

Ha

Un

Ha

Un

a he

za

za

rd

rd

300

der

ate

200

0

)LJ36,FKDUW

100 50

500

500

PSI = 350

0

50

Good

100

Mo

der Mo Good

s

s

ate

ou

ou

300

200

PSI = 350 )LJ36,FKDUW

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH&RUUHODWLRQRI36,LQGH[ZLWKKHDOWKHIIHFWV

7DEOH&RUUHODWLRQRI36,LQGH[ZLWKKHDOWKHIIHFWV

+HDOWK HIIHFW

3ROOXWDQWOHYHOV LQPLFURJUDPVSHUOLWUH ,QGH[ YDOXH

+D]DUGRXV 

*HQHUDOKHDOWK HIIHFWV

&DXWLRQDU\ VWDWHPHQWV

+HDOWK HIIHFW

$LU TXDOLW\ OHYHO

3ROOXWDQWOHYHOV LQPLFURJUDPVSHUOLWUH ,QGH[ YDOXH

*HQHUDOKHDOWK HIIHFWV

&DXWLRQDU\ VWDWHPHQWV

6LJQLILFDQWO\ KDUPIXO

3UHPDWXUHGHDWKRI LOODQGHOGHUO\ +HDOWK\SHRSOHZLOO H[SHULHQFH DGYHUVH V\PSWRPV WKDW DIIHFW WKHLUQRUPDODFWLYLW\

$OO SHUVRQV VKRXOG UHPDLQLQGRRUV $OO SHUVRQV VKRXOGPLQLPL]H SK\VLFDO H[HUWLRQ DQG DYRLG WUDIILF

$LU TXDOLW\ OHYHO

6LJQLILFDQWO\ KDUPIXO

3UHPDWXUHGHDWKRI LOODQGHOGHUO\ +HDOWK\SHRSOHZLOO H[SHULHQFH DGYHUVH V\PSWRPV WKDW DIIHFW WKHLUQRUPDODFWLYLW\

$OO SHUVRQV VKRXOG UHPDLQLQGRRUV $OO SHUVRQV VKRXOGPLQLPL]H SK\VLFDO H[HUWLRQ DQG DYRLG WUDIILF

+D]DUGRXV 



(PHUJHQF\

3UHPDWXUHRQVHWRI FHUWDLQ GLVHDVHV LQ DGGLWLRQWRVLJQLILFDQW DJJUDYDWLRQ RI V\PSWRPVDQG GHFUHDVHG H[HUFLVH WROHUDQFHLQKHDOWK\ SHUVRQV

(OGHUO\SHUVRQVDQG SHUVRQV ZLWK GLVHDVHV VKRXOG VWD\ LQGRRUVDQGDYRLG SK\VLFDO H[HUWLRQ *HQHUDOSRSXODWLRQ VKRXOGDYRLGRXWGRRU DFWLYLW\



(PHUJHQF\

3UHPDWXUHRQVHWRI FHUWDLQ GLVHDVHV LQ DGGLWLRQWRVLJQLILFDQW DJJUDYDWLRQ RI V\PSWRPVDQG GHFUHDVHG H[HUFLVH WROHUDQFHLQKHDOWK\ SHUVRQV

(OGHUO\SHUVRQVDQG SHUVRQV ZLWK GLVHDVHV VKRXOG VWD\ LQGRRUVDQGDYRLG SK\VLFDO H[HUWLRQ *HQHUDOSRSXODWLRQ VKRXOGDYRLGRXWGRRU DFWLYLW\



:DUQLQJ

6LJQLILFDQW DJJUDY DYDWLRQ RI V\PSWRPV DQG GHFUHDVHG H[HUFLVH WROHUDQFH LQ SHUVRQV ZLWK KHDUWRUOXQJGLVHDVHV ZLWK ZLGHVSUHDG V\PSWRPVLQWKH KHDOWK\SRSXODWLRQ

(OGHUO\SHUVRQVDQG SHUVRQV ZLWK KHDUW RU OXQJ GLVHDVHV VKRXOG VWD\ LQGRRUV DQG UHGXFH SK\VLFDO DFWLYLW\



:DUQLQJ

6LJQLILFDQW DJJUDY DYDWLRQ RI V\PSWRPV DQG GHFUHDVHG H[HUFLVH WROHUDQFH LQ SHUVRQV ZLWK KHDUWRUOXQJGLVHDVHV ZLWK ZLGHVSUHDG V\PSWRPVLQWKH KHDOWK\SRSXODWLRQ

(OGHUO\SHUVRQVDQG SHUVRQV ZLWK KHDUW RU OXQJ GLVHDVHV VKRXOG VWD\ LQGRRUV DQG UHGXFH SK\VLFDO DFWLYLW\

8QKHDOWK\



$OHUW

0LOGDJJUDYDWLRQRI V\PSWRPV LQ VXVFHS WLEOH SHUVRQV ZLWK LUULWDWLRQV\PSWRPVLQ WKHKHDOWK\SRSXODWLRQ

3HUVRQV ZLWK KHDUW RU UHVSLUDWRU\ DLOPHQWVVKRXOG UHGXFH SK\VLFDO H[HUWLRQ DQG RXWGRRU DFWLYLW\

8QKHDOWK\



$OHUW

0LOGDJJUDYDWLRQRI V\PSWRPV LQ VXVFHS WLEOH SHUVRQV ZLWK LUULWDWLRQV\PSWRPVLQ WKHKHDOWK\SRSXODWLRQ

3HUVRQV ZLWK KHDUW RU UHVSLUDWRU\ DLOPHQWVVKRXOG UHGXFH SK\VLFDO H[HUWLRQ DQG RXWGRRU DFWLYLW\

8QKHDOWK\



1DWLRQDODPELHQWDLU TXDOLW\ VWDQGDUG

8QKHDOWK\



1DWLRQDODPELHQWDLU TXDOLW\ VWDQGDUG

0RGHUDWH



SHUFHQWRIWKH 1DWLRQDODPELHQWDLU TXDOLW\ VWDQGDUG

3HUVRQV ZLWK KHDOWK SUREOHPV VKRXOG UHGXFH H[SRVXUH

0RGHUDWH



SHUFHQWRIWKH 1DWLRQDODPELHQWDLU TXDOLW\ VWDQGDUG

3HUVRQV ZLWK KHDOWK SUREOHPV VKRXOG UHGXFH H[SRVXUH

*RRG



1RUPDODFWLYLW\

±

*RRG



1RUPDODFWLYLW\

±

 $,5 32//87,21 6859(
@

L LL LLL LY Y YL

WRLGHQWLI\VSHFLILFVRXUFHVRISROOXWLRQ WRGHWHUPLQHWKHDLUTXDOLW\IRUDSDUWLFXODUDUHD PRQLWRULQJDQGFRQWURORIYHKLFXODUHPLVVLRQV EDFNJURXQGDLUSROOXWLRQOHYHOGHWHUPLQDWLRQ GHYHORSPHQWRIDLUSROOXWLRQPRGHOV GHYHORSPHQWRIGDWDEDVHV

L LL LLL LY Y YL

WRLGHQWLI\VSHFLILFVRXUFHVRISROOXWLRQ WRGHWHUPLQHWKHDLUTXDOLW\IRUDSDUWLFXODUDUHD PRQLWRULQJDQGFRQWURORIYHKLFXODUHPLVVLRQV EDFNJURXQGDLUSROOXWLRQOHYHOGHWHUPLQDWLRQ GHYHORSPHQWRIDLUSROOXWLRQPRGHOV GHYHORSPHQWRIGDWDEDVHV

 6DPSOLQJ 7HFKQLTXHV

 6DPSOLQJ 7HFKQLTXHV

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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 0HWKRGRORJ\RI$LU3ROOXWLRQ6XUYH\V

 0HWKRGRORJ\RI$LU3ROOXWLRQ6XUYH\V

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

       

:LQGGLUHFWLRQRIWKHSROOXWHGDLUPDVVDQGPL[LQJOD\HU 7UDMHFWRULHVRISROOXWDQWDLUPDVVHV ,PSDFWRIVFDYHQJLQJPHFKDQLVPV 6WDWLVWLFDOGLVWULEXWLRQRIIUHTXHQFLHVSHUVLVWHQFHDQGDUHDDIIHFWHGHWF 9HUWLFDOPL[LQJKHLJKW +RUL]RQWDOZLQGVSHHGLQPL[LQJOD\HU 'LXUQDOYDULDWLRQVRIZLQGGLUHFWLRQV 3UHFLSLWDWLRQ

       

:LQGGLUHFWLRQRIWKHSROOXWHGDLUPDVVDQGPL[LQJOD\HU 7UDMHFWRULHVRISROOXWDQWDLUPDVVHV ,PSDFWRIVFDYHQJLQJPHFKDQLVPV 6WDWLVWLFDOGLVWULEXWLRQRIIUHTXHQFLHVSHUVLVWHQFHDQGDUHDDIIHFWHGHWF 9HUWLFDOPL[LQJKHLJKW +RUL]RQWDOZLQGVSHHGLQPL[LQJOD\HU 'LXUQDOYDULDWLRQVRIZLQGGLUHFWLRQV 3UHFLSLWDWLRQ

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

,QDGGLWLRQGDWDDERXWWKHYDULDELOLW\RIZLQGGLUHFWLRQDQGDGLDEDWLFODSVH UDWHVDOVRQHHGVWREHFRQVLGHUHGWRDVVHVVWKHDLUTXDOLW\&XPXODWLYHDVVHVVPHQW RIWKHDLUSROOXWDQWVDQGWKHLULPSDFWVDERYHH[LVWLQJOHYHOVFDQEHHVWLPDWHGRQO\LI DOOWKHFOLPDWLFSDUDPHWHUVDUHWDNHQLQWRFRQVLGHUDWLRQV (PLVVLRQLQYHQWRULHVIRUYDULRXVSROOXWDQWVDUHSUHSDUHGQH[W8VLQJWKHHPLVVLRQ UDWHVRISROOXWDQWVDQGPHWHRURORJLFDOGDWDRQHFDQHDVLO\FDOFXODWHWKHLQFUHPHQWDO JURXQGFRQFHQWUDWLRQRIWKHSROOXWDQWVXQGHUFRQVLGHUDWLRQ'DWDFROOHFWLRQFDQEH JURXSHGLQWRYDULRXVDVSHFWVVXFKDV

D $FWXDODQGDOORZDEOHHPLVVLRQUDWHVJVHF DQGRSHUDWLQJUDWHV E 0D[LPXPGHVLJQDQGVKRUWWHUPHPLVVLRQUDWHJVHF F $VVRFLDWHG HPLVVLRQ FKDUDFWHULVWLFV DV D IXQFWLRQ RI ORDG IRU DYHUDJH QRUPDODQGPD[LPXPRSHUDWLQJFRQGLWLRQV G /RFDO VWDFN FKDUDFWHULVWLFV VXFK DV ORFDWLRQ VWDFN KHLJKW DQG GLDPHWHU H[LWYHORFLW\DQGVWDFNJDVWHPSHUDWXUH H $UHDVRXUFHHPLVVLRQV I /RFDWLRQDQGGLPHQVLRQVRIWDOOEXLOGLQJVLQWKHDUHD

D $FWXDODQGDOORZDEOHHPLVVLRQUDWHVJVHF DQGRSHUDWLQJUDWHV E 0D[LPXPGHVLJQDQGVKRUWWHUPHPLVVLRQUDWHJVHF F $VVRFLDWHG HPLVVLRQ FKDUDFWHULVWLFV DV D IXQFWLRQ RI ORDG IRU DYHUDJH QRUPDODQGPD[LPXPRSHUDWLQJFRQGLWLRQV G /RFDO VWDFN FKDUDFWHULVWLFV VXFK DV ORFDWLRQ VWDFN KHLJKW DQG GLDPHWHU H[LWYHORFLW\DQGVWDFNJDVWHPSHUDWXUH H $UHDVRXUFHHPLVVLRQV I /RFDWLRQDQGGLPHQVLRQVRIWDOOEXLOGLQJVLQWKHDUHD

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 0HWKRGRORJ\RI$LU3ROOXWLRQ6XUYH\V

 0HWKRGRORJ\RI$LU3ROOXWLRQ6XUYH\V

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

       

:LQGGLUHFWLRQRIWKHSROOXWHGDLUPDVVDQGPL[LQJOD\HU 7UDMHFWRULHVRISROOXWDQWDLUPDVVHV ,PSDFWRIVFDYHQJLQJPHFKDQLVPV 6WDWLVWLFDOGLVWULEXWLRQRIIUHTXHQFLHVSHUVLVWHQFHDQGDUHDDIIHFWHGHWF 9HUWLFDOPL[LQJKHLJKW +RUL]RQWDOZLQGVSHHGLQPL[LQJOD\HU 'LXUQDOYDULDWLRQVRIZLQGGLUHFWLRQV 3UHFLSLWDWLRQ

       

:LQGGLUHFWLRQRIWKHSROOXWHGDLUPDVVDQGPL[LQJOD\HU 7UDMHFWRULHVRISROOXWDQWDLUPDVVHV ,PSDFWRIVFDYHQJLQJPHFKDQLVPV 6WDWLVWLFDOGLVWULEXWLRQRIIUHTXHQFLHVSHUVLVWHQFHDQGDUHDDIIHFWHGHWF 9HUWLFDOPL[LQJKHLJKW +RUL]RQWDOZLQGVSHHGLQPL[LQJOD\HU 'LXUQDOYDULDWLRQVRIZLQGGLUHFWLRQV 3UHFLSLWDWLRQ

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

D $FWXDODQGDOORZDEOHHPLVVLRQUDWHVJVHF DQGRSHUDWLQJUDWHV E 0D[LPXPGHVLJQDQGVKRUWWHUPHPLVVLRQUDWHJVHF F $VVRFLDWHG HPLVVLRQ FKDUDFWHULVWLFV DV D IXQFWLRQ RI ORDG IRU DYHUDJH QRUPDODQGPD[LPXPRSHUDWLQJFRQGLWLRQV G /RFDO VWDFN FKDUDFWHULVWLFV VXFK DV ORFDWLRQ VWDFN KHLJKW DQG GLDPHWHU H[LWYHORFLW\DQGVWDFNJDVWHPSHUDWXUH H $UHDVRXUFHHPLVVLRQV I /RFDWLRQDQGGLPHQVLRQVRIWDOOEXLOGLQJVLQWKHDUHD

D $FWXDODQGDOORZDEOHHPLVVLRQUDWHVJVHF DQGRSHUDWLQJUDWHV E 0D[LPXPGHVLJQDQGVKRUWWHUPHPLVVLRQUDWHJVHF F $VVRFLDWHG HPLVVLRQ FKDUDFWHULVWLFV DV D IXQFWLRQ RI ORDG IRU DYHUDJH QRUPDODQGPD[LPXPRSHUDWLQJFRQGLWLRQV G /RFDO VWDFN FKDUDFWHULVWLFV VXFK DV ORFDWLRQ VWDFN KHLJKW DQG GLDPHWHU H[LWYHORFLW\DQGVWDFNJDVWHPSHUDWXUH H $UHDVRXUFHHPLVVLRQV I /RFDWLRQDQGGLPHQVLRQVRIWDOOEXLOGLQJVLQWKHDUHD

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

J %RLOHUVL]HRSHUDWLQJSDUDPHWHUVSROOXWLRQFRQWUROHTXLSPHQWDQGHPLVVLRQ FRQFHQWUDWLRQV K $QWLFLSDWHGJURZWK

J %RLOHUVL]HRSHUDWLQJSDUDPHWHUVSROOXWLRQFRQWUROHTXLSPHQWDQGHPLVVLRQ FRQFHQWUDWLRQV K $QWLFLSDWHGJURZWK

0DVVIORZVDUHHVWLPDWHGE\PXOWLSO\LQJFRQFHQWUDWLRQRIWKHSROOXWDQWVZLWK YROXPHIORZ0DVVIORZVDUHH[SUHVVHGDVPDVVRIWKHSROOXWDQWHPLWWHGSHUXQLW WLPH DOVR NQRZQ DV HPLVVLRQ IORZ  RU PDVV RI WKH SROOXWDQW UHFHLYHG E\ WKH UHFHSWRU SHU XQLW WLPH DOVR NQRZQ DV SROOXWDQW IOX[  7\SLFDO IORZ VKHHW IRU DVVHVVLQJWKHPDVVIORZIURPLQGXVWULDOIXUQDFHVVWDFNVLQGXVWULDOSURFHVVIORZ VKHHWVLVVKRZQLQ)LJ

0DVVIORZVDUHHVWLPDWHGE\PXOWLSO\LQJFRQFHQWUDWLRQRIWKHSROOXWDQWVZLWK YROXPHIORZ0DVVIORZVDUHH[SUHVVHGDVPDVVRIWKHSROOXWDQWHPLWWHGSHUXQLW WLPH DOVR NQRZQ DV HPLVVLRQ IORZ  RU PDVV RI WKH SROOXWDQW UHFHLYHG E\ WKH UHFHSWRU SHU XQLW WLPH DOVR NQRZQ DV SROOXWDQW IOX[  7\SLFDO IORZ VKHHW IRU DVVHVVLQJWKHPDVVIORZIURPLQGXVWULDOIXUQDFHVVWDFNVLQGXVWULDOSURFHVVIORZ VKHHWVLVVKRZQLQ)LJ

Pollutant concentration measurement of flue gas components in ppmv (or mg/m3) related to 0°C, 1013 mbar and dry gas

Pollutant concentration measurement of flue gas components in ppmv (or mg/m3) related to 0°C, 1013 mbar and dry gas

Conversion into mass concentration 3 3 μg/m (Gas density in mg/cm )

Fuel rate in kg/h O2 or CO2 in Vol % (Dilution of flue gas) Flue gas flow rate 3 in M /h Temperature, pressure, humidity

Calculation of the flue gas flow rate with specific flue gas volume in m3/kg and flue gas dilution for different loads (Fuel rate)

Conservation of flue gas 3 flow rate in m /h, dry

Pollutant concentration related to a defined dilution of flue gas, e.g., 3 or 7% O2

Comparison with threshold values

Emission rate in kg/h rel. to different loads of the plant

Related to actual fuel rate

Operating hours different loads per time. e.g. per year

Consideration of different load situations per related time

Real emissions of a plant per time, e.g., per day or per year in kg/d or t/yr

Conversion into mass concentration 3 3 μg/m (Gas density in mg/cm )

Fuel rate in kg/h O2 or CO2 in Vol % (Dilution of flue gas) Flue gas flow rate 3 in M /h Temperature, pressure, humidity

Calculation of the flue gas flow rate with specific flue gas volume in m3/kg and flue gas dilution for different loads (Fuel rate)

Conservation of flue gas 3 flow rate in m /h, dry

Related to actual fuel rate

Consideration of different load situations per related time

Heating value of the fuel in kW/kg

Real emissions of a plant per time, e.g., per day or per year in kg/d or t/yr

Efficiency of the plant

Heating value of the fuel in kW/kg

Comparison with threshold values

Emission rate in kg/h rel. to different loads of the plant

Operating hours different loads per time. e.g. per year

Emission factors: Mass of emitted substance per fuel mass in g/kg. Possibly related to different loads

Pollutant concentration related to a defined dilution of flue gas, e.g., 3 or 7% O2

Emission factors: Mass of emitted substance per fuel mass in g/kg. Possibly related to different loads

Heating value of the fuel in kW/kg Efficiency of the plant

Heating value of the fuel in kW/kg

)LJ0DVVIORZHVWLPDWLRQIRUIOXHJDVHV

)LJ0DVVIORZHVWLPDWLRQIRUIOXHJDVHV

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

J %RLOHUVL]HRSHUDWLQJSDUDPHWHUVSROOXWLRQFRQWUROHTXLSPHQWDQGHPLVVLRQ FRQFHQWUDWLRQV K $QWLFLSDWHGJURZWK

J %RLOHUVL]HRSHUDWLQJSDUDPHWHUVSROOXWLRQFRQWUROHTXLSPHQWDQGHPLVVLRQ FRQFHQWUDWLRQV K $QWLFLSDWHGJURZWK

0DVVIORZVDUHHVWLPDWHGE\PXOWLSO\LQJFRQFHQWUDWLRQRIWKHSROOXWDQWVZLWK YROXPHIORZ0DVVIORZVDUHH[SUHVVHGDVPDVVRIWKHSROOXWDQWHPLWWHGSHUXQLW WLPH DOVR NQRZQ DV HPLVVLRQ IORZ  RU PDVV RI WKH SROOXWDQW UHFHLYHG E\ WKH UHFHSWRU SHU XQLW WLPH DOVR NQRZQ DV SROOXWDQW IOX[  7\SLFDO IORZ VKHHW IRU DVVHVVLQJWKHPDVVIORZIURPLQGXVWULDOIXUQDFHVVWDFNVLQGXVWULDOSURFHVVIORZ VKHHWVLVVKRZQLQ)LJ

0DVVIORZVDUHHVWLPDWHGE\PXOWLSO\LQJFRQFHQWUDWLRQRIWKHSROOXWDQWVZLWK YROXPHIORZ0DVVIORZVDUHH[SUHVVHGDVPDVVRIWKHSROOXWDQWHPLWWHGSHUXQLW WLPH DOVR NQRZQ DV HPLVVLRQ IORZ  RU PDVV RI WKH SROOXWDQW UHFHLYHG E\ WKH UHFHSWRU SHU XQLW WLPH DOVR NQRZQ DV SROOXWDQW IOX[  7\SLFDO IORZ VKHHW IRU DVVHVVLQJWKHPDVVIORZIURPLQGXVWULDOIXUQDFHVVWDFNVLQGXVWULDOSURFHVVIORZ VKHHWVLVVKRZQLQ)LJ

Pollutant concentration measurement of flue gas components in ppmv (or mg/m3) related to 0°C, 1013 mbar and dry gas

Pollutant concentration measurement of flue gas components in ppmv (or mg/m3) related to 0°C, 1013 mbar and dry gas

Conversion into mass concentration 3 3 μg/m (Gas density in mg/cm )

Fuel rate in kg/h O2 or CO2 in Vol % (Dilution of flue gas) Flue gas flow rate 3 in M /h Temperature, pressure, humidity

Calculation of the flue gas flow rate with specific flue gas volume in m3/kg and flue gas dilution for different loads (Fuel rate)

Conservation of flue gas 3 flow rate in m /h, dry

Pollutant concentration related to a defined dilution of flue gas, e.g., 3 or 7% O2

Comparison with threshold values

Emission rate in kg/h rel. to different loads of the plant

Related to actual fuel rate

Operating hours different loads per time. e.g. per year

Consideration of different load situations per related time

Real emissions of a plant per time, e.g., per day or per year in kg/d or t/yr

Emission factors: Mass of emitted substance per fuel mass in g/kg. Possibly related to different loads

Heating value of the fuel in kW/kg Efficiency of the plant

Heating value of the fuel in kW/kg

)LJ0DVVIORZHVWLPDWLRQIRUIOXHJDVHV

Conversion into mass concentration 3 3 μg/m (Gas density in mg/cm )

Fuel rate in kg/h O2 or CO2 in Vol % (Dilution of flue gas) Flue gas flow rate 3 in M /h Temperature, pressure, humidity

Calculation of the flue gas flow rate with specific flue gas volume in m3/kg and flue gas dilution for different loads (Fuel rate)

Conservation of flue gas 3 flow rate in m /h, dry

Pollutant concentration related to a defined dilution of flue gas, e.g., 3 or 7% O2

Comparison with threshold values

Emission rate in kg/h rel. to different loads of the plant

Related to actual fuel rate

Operating hours different loads per time. e.g. per year

Consideration of different load situations per related time

Real emissions of a plant per time, e.g., per day or per year in kg/d or t/yr

Emission factors: Mass of emitted substance per fuel mass in g/kg. Possibly related to different loads

Heating value of the fuel in kW/kg Efficiency of the plant

Heating value of the fuel in kW/kg

)LJ0DVVIORZHVWLPDWLRQIRUIOXHJDVHV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

(VWLPDWLRQRI62(PLVVLRQVIURP)XHO&RPSRVLWLRQ

(VWLPDWLRQRI62(PLVVLRQVIURP)XHO&RPSRVLWLRQ

,IWKHVXOSKXUFRQWHQWLVNQRZQ62HPLVVLRQVFDQEHHDVLO\FDOFXODWHGIURPIXHO FRQVXPSWLRQGDWD)RUH[DPSOHLIDIXHOFRQWDLQVVXOSKXUNJRIIXHO UHOHDVHV  J RI 62 7KLV FDOFXODWLRQ SUHVXSSRVHV WKDW DOO WKH VXOSKXU LV EXUQW DFFRUGLQJWRVWRLFKLRPHWULFUHODWLRQVKLSDQGQRIOXHJDVGHVXOSKXUL]DWLRQHTXLSPHQW LVLQVWDOOHG

,IWKHVXOSKXUFRQWHQWLVNQRZQ62HPLVVLRQVFDQEHHDVLO\FDOFXODWHGIURPIXHO FRQVXPSWLRQGDWD)RUH[DPSOHLIDIXHOFRQWDLQVVXOSKXUNJRIIXHO UHOHDVHV  J RI 62 7KLV FDOFXODWLRQ SUHVXSSRVHV WKDW DOO WKH VXOSKXU LV EXUQW DFFRUGLQJWRVWRLFKLRPHWULFUHODWLRQVKLSDQGQRIOXHJDVGHVXOSKXUL]DWLRQHTXLSPHQW LVLQVWDOOHG

(VWLPDWLRQRI12[+&DQG+HDY\0HWDOV

(VWLPDWLRQRI12[+&DQG+HDY\0HWDOV

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

 $UHD (PLVVLRQ ,QYHQWRULHV

 $UHD (PLVVLRQ ,QYHQWRULHV

8VXDOO\XUEDQDLUVKHGLVGLYLGHGLQWRVHYHUDOJULGVRI±VTNPIRUWKHHVWLPDWLRQ RIHPLVVLRQRILQYHQWRULHV7KHVHJULGVDUHIXUWKHUFODVVLILHGLQWRGLIIHUHQWJURXSV VXFKDVFRPPHUFLDOLQGXVWULDODUHDVDQGGRPHVWLFRUUHVLGHQWLDODUHDV7KHVHDUHDV DUHPRQLWRUHGIRU6212[&2WRWDOVXVSHQGHGSDUWLFXODWHPDWWHU763 IRUDLU TXDOLW\23E+&&O)RUJDQLFVHWFIRUHQYLURQPHQWDOSROOXWLRQGDWD

8VXDOO\XUEDQDLUVKHGLVGLYLGHGLQWRVHYHUDOJULGVRI±VTNPIRUWKHHVWLPDWLRQ RIHPLVVLRQRILQYHQWRULHV7KHVHJULGVDUHIXUWKHUFODVVLILHGLQWRGLIIHUHQWJURXSV VXFKDVFRPPHUFLDOLQGXVWULDODUHDVDQGGRPHVWLFRUUHVLGHQWLDODUHDV7KHVHDUHDV DUHPRQLWRUHGIRU6212[&2WRWDOVXVSHQGHGSDUWLFXODWHPDWWHU763 IRUDLU TXDOLW\23E+&&O)RUJDQLFVHWFIRUHQYLURQPHQWDOSROOXWLRQGDWD

D $UHD (PLVVLRQ ,QYHQWRULHV IURP 9HKLFXODU 7UDIILF )LJXUHVKRZVDVFKHPDWLFIORZVKHHWIRUWKHHVWLPDWLRQRI62[12[+& HWFIURPYHKLFXODUWUDIILF$OOWKHURDGVLQDSDUWLFXODUJULGDUHFRPELQHGWRJLYH WRWDOPLOHDJHLQWKHDUHDDQGSROOXWDQWHPLVVLRQVDUHFRPSXWHGIRUW\SLFDOGULYLQJ PRGHV 7KHPHWKRGLVVLPSOH,QLWLDOO\WKHQXPEHUDQGW\SHVRIYHKLFOHVWUDYHUVLQJ WKHWRWDONLORPHWUHLVUHFRUGHG$VWDQGDUGHPLVVLRQUDWHIRUHDFKW\SHRIYHKLFOHLV FRPSXWHGIRUHDFKSROOXWDQWXQGHUFRQVLGHUDWLRQ8VLQJDSSURSULDWHHPLVVLRQIDFWRUV IRUYDULRXVIXHOVDQQXDOORDGLVFDOFXODWHG

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

E (PLVVLRQV IURP ,QGXVWULDO $UHDV (VWLPDWLRQ RI DLU SROOXWDQWV IURP LQGXVWULDO VRXUFHV LV REWDLQHG IURP GLUHFW PHDVXUHPHQWDQGPXOWLSO\LQJWKHVDPHE\WKHWRWDOKRXUVRIRSHUDWLRQ,WLVDOVR SRVVLEOHWRFRPSXWHDSSUR[LPDWHFKDUJLQJORDGE\WDNLQJLQWRFRQVLGHUDWLRQLQGLYLGXDO RSHUDWLRQVDQGWKHW\SHRIIXHOXVHG+RZHYHUWKLVPHWKRGLVWHGLRXVDQGQRWVR

E (PLVVLRQV IURP ,QGXVWULDO $UHDV (VWLPDWLRQ RI DLU SROOXWDQWV IURP LQGXVWULDO VRXUFHV LV REWDLQHG IURP GLUHFW PHDVXUHPHQWDQGPXOWLSO\LQJWKHVDPHE\WKHWRWDOKRXUVRIRSHUDWLRQ,WLVDOVR SRVVLEOHWRFRPSXWHDSSUR[LPDWHFKDUJLQJORDGE\WDNLQJLQWRFRQVLGHUDWLRQLQGLYLGXDO RSHUDWLRQVDQGWKHW\SHRIIXHOXVHG+RZHYHUWKLVPHWKRGLVWHGLRXVDQGQRWVR

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

(VWLPDWLRQRI62(PLVVLRQVIURP)XHO&RPSRVLWLRQ

(VWLPDWLRQRI62(PLVVLRQVIURP)XHO&RPSRVLWLRQ

,IWKHVXOSKXUFRQWHQWLVNQRZQ62HPLVVLRQVFDQEHHDVLO\FDOFXODWHGIURPIXHO FRQVXPSWLRQGDWD)RUH[DPSOHLIDIXHOFRQWDLQVVXOSKXUNJRIIXHO UHOHDVHV  J RI 62 7KLV FDOFXODWLRQ SUHVXSSRVHV WKDW DOO WKH VXOSKXU LV EXUQW DFFRUGLQJWRVWRLFKLRPHWULFUHODWLRQVKLSDQGQRIOXHJDVGHVXOSKXUL]DWLRQHTXLSPHQW LVLQVWDOOHG

,IWKHVXOSKXUFRQWHQWLVNQRZQ62HPLVVLRQVFDQEHHDVLO\FDOFXODWHGIURPIXHO FRQVXPSWLRQGDWD)RUH[DPSOHLIDIXHOFRQWDLQVVXOSKXUNJRIIXHO UHOHDVHV  J RI 62 7KLV FDOFXODWLRQ SUHVXSSRVHV WKDW DOO WKH VXOSKXU LV EXUQW DFFRUGLQJWRVWRLFKLRPHWULFUHODWLRQVKLSDQGQRIOXHJDVGHVXOSKXUL]DWLRQHTXLSPHQW LVLQVWDOOHG

(VWLPDWLRQRI12[+&DQG+HDY\0HWDOV

(VWLPDWLRQRI12[+&DQG+HDY\0HWDOV

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

 $UHD (PLVVLRQ ,QYHQWRULHV

 $UHD (PLVVLRQ ,QYHQWRULHV

8VXDOO\XUEDQDLUVKHGLVGLYLGHGLQWRVHYHUDOJULGVRI±VTNPIRUWKHHVWLPDWLRQ RIHPLVVLRQRILQYHQWRULHV7KHVHJULGVDUHIXUWKHUFODVVLILHGLQWRGLIIHUHQWJURXSV VXFKDVFRPPHUFLDOLQGXVWULDODUHDVDQGGRPHVWLFRUUHVLGHQWLDODUHDV7KHVHDUHDV DUHPRQLWRUHGIRU6212[&2WRWDOVXVSHQGHGSDUWLFXODWHPDWWHU763 IRUDLU TXDOLW\23E+&&O)RUJDQLFVHWFIRUHQYLURQPHQWDOSROOXWLRQGDWD

8VXDOO\XUEDQDLUVKHGLVGLYLGHGLQWRVHYHUDOJULGVRI±VTNPIRUWKHHVWLPDWLRQ RIHPLVVLRQRILQYHQWRULHV7KHVHJULGVDUHIXUWKHUFODVVLILHGLQWRGLIIHUHQWJURXSV VXFKDVFRPPHUFLDOLQGXVWULDODUHDVDQGGRPHVWLFRUUHVLGHQWLDODUHDV7KHVHDUHDV DUHPRQLWRUHGIRU6212[&2WRWDOVXVSHQGHGSDUWLFXODWHPDWWHU763 IRUDLU TXDOLW\23E+&&O)RUJDQLFVHWFIRUHQYLURQPHQWDOSROOXWLRQGDWD

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

E (PLVVLRQV IURP ,QGXVWULDO $UHDV (VWLPDWLRQ RI DLU SROOXWDQWV IURP LQGXVWULDO VRXUFHV LV REWDLQHG IURP GLUHFW PHDVXUHPHQWDQGPXOWLSO\LQJWKHVDPHE\WKHWRWDOKRXUVRIRSHUDWLRQ,WLVDOVR SRVVLEOHWRFRPSXWHDSSUR[LPDWHFKDUJLQJORDGE\WDNLQJLQWRFRQVLGHUDWLRQLQGLYLGXDO RSHUDWLRQVDQGWKHW\SHRIIXHOXVHG+RZHYHUWKLVPHWKRGLVWHGLRXVDQGQRWVR

E (PLVVLRQV IURP ,QGXVWULDO $UHDV (VWLPDWLRQ RI DLU SROOXWDQWV IURP LQGXVWULDO VRXUFHV LV REWDLQHG IURP GLUHFW PHDVXUHPHQWDQGPXOWLSO\LQJWKHVDPHE\WKHWRWDOKRXUVRIRSHUDWLRQ,WLVDOVR SRVVLEOHWRFRPSXWHDSSUR[LPDWHFKDUJLQJORDGE\WDNLQJLQWRFRQVLGHUDWLRQLQGLYLGXDO RSHUDWLRQVDQGWKHW\SHRIIXHOXVHG+RZHYHUWKLVPHWKRGLVWHGLRXVDQGQRWVR

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V  Traffic load inventory

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V  Traffic load inventory

Registration and numbering of the roads

Registration and numbering of the roads

Non-registered roads of city map

Non-registered roads of city map

Traffic load/day: proportion of trucks

Traffic load/day: proportion of trucks Annual traffic load per road for passenger cars and lorries

Annual traffic load per road for passenger cars and lorries

Assessment of driving modes

Assessment of driving modes

Emission factors according to the driving modes

Emission factors according to the driving modes Annual SO2 and NOx Emission per road t/(km a)

Annual SO2 and NOx Emission per road t/(km a)

Division of city area into grid squares of 1 × 1 km

Division of city area into grid squares of 1 × 1 km Allocation of individual street sections to the grid squares

Colour-coded representation of high-emission roads in city map

Allocation of individual street sections to the grid squares

Annual SO2 and NOx emission of traffic per grid square in t/(km2)

Colour-coded representation of high-emission roads in city map

Annual SO2 and NOx emission of traffic per grid square in t/(km2)

)LJ9HKLFXODUWUDIILFHVWLPDWLRQ

)LJ9HKLFXODUWUDIILFHVWLPDWLRQ

DFFXUDWH 'DWD IURP HDFK JULG LV FRQVROLGDWHG DQG FRORXU FRGHG IRU HDV\ LQWHUSUHWDWLRQ

DFFXUDWH 'DWD IURP HDFK JULG LV FRQVROLGDWHG DQG FRORXU FRGHG IRU HDV\ LQWHUSUHWDWLRQ

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

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

Traffic load inventory

Traffic load inventory Registration and numbering of the roads

Registration and numbering of the roads

Non-registered roads of city map

Non-registered roads of city map

Traffic load/day: proportion of trucks

Traffic load/day: proportion of trucks Annual traffic load per road for passenger cars and lorries

Annual traffic load per road for passenger cars and lorries

Assessment of driving modes

Assessment of driving modes

Emission factors according to the driving modes

Emission factors according to the driving modes Annual SO2 and NOx Emission per road t/(km a)

Annual SO2 and NOx Emission per road t/(km a)

Division of city area into grid squares of 1 × 1 km

Division of city area into grid squares of 1 × 1 km Allocation of individual street sections to the grid squares

Colour-coded representation of high-emission roads in city map

Annual SO2 and NOx emission of traffic per grid square in t/(km2)

Allocation of individual street sections to the grid squares

Colour-coded representation of high-emission roads in city map

Annual SO2 and NOx emission of traffic per grid square in t/(km2)

)LJ9HKLFXODUWUDIILFHVWLPDWLRQ

)LJ9HKLFXODUWUDIILFHVWLPDWLRQ

DFFXUDWH 'DWD IURP HDFK JULG LV FRQVROLGDWHG DQG FRORXU FRGHG IRU HDV\ LQWHUSUHWDWLRQ

DFFXUDWH 'DWD IURP HDFK JULG LV FRQVROLGDWHG DQG FRORXU FRGHG IRU HDV\ LQWHUSUHWDWLRQ

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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

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

$LU3ROOXWLRQ6XUYH\3URJUDPPHV

$LU3ROOXWLRQ6XUYH\3URJUDPPHV

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¶W EHUHSHDWHGKHUHDJDLQ

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¶W EHUHSHDWHGKHUHDJDLQ

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

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

HIIHFWRQWKHJURXQGOHYHOEUHDWKDEOHVSDFHPD\EHDOPRVWQHJOLJLEOH2QWKHRWKHU KDQGYHKLFXODUHPLVVLRQVUHOHDVHGDWRUQHDUWKHJURXQGOHYHOVZLOOKDYHDKLJKHU LPSDFWRQWKHDLUTXDOLW\7KLVLVZKHUHGLVSHUVLRQPHFKDQLVPVFOLPDWRORJ\DQG PHWHRURORJ\DVVXPHLPSRUWDQFH7KHUHIRUHLQDLUTXDOLW\DVVHVVPHQWPRGHOOLQJ KDVDJUHDWLPSDFW3ORWVRIGLXUQDOYDULDWLRQVLQWKHWUDIILFIORZDQGFRQVHTXHQW 62DQG12[YDULDWLRQVZLOOVKRZVHYHUDOSHDNVFRUUHVSRQGLQJWRWKHUXVKKRXUV DQG OHDQ KRXUV 6LPLODUO\ WKH HPLVVLRQV SDWWHUQV ZLOO EH PXFK GLIIHUHQW GXULQJ ZHHNHQGV KROLGD\V QHDU SLFQLF VSRWV SODFHV RI WRXULVW DWWUDFWLRQ HWF 7KXV FRPSOHWHXQGHUVWDQGLQJRIWHPSRUDODQGVSDWLDOYDULDWLRQVLQSROOXWDQWHPLVVLRQVLQ HDFKJULGZLOOKHOSLQWKHHQYLURQPHQWPDQDJHPHQWRSWLRQV

$LU3ROOXWLRQ6XUYH\3URJUDPPHV

$LU3ROOXWLRQ6XUYH\3URJUDPPHV

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¶W EHUHSHDWHGKHUHDJDLQ

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¶W EHUHSHDWHGKHUHDJDLQ

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

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

  $,5 32//87,21 ,03$&7 $66(660(17

  $,5 32//87,21 ,03$&7 $66(660(17

$LUSROOXWLRQVXUYH\HVVHQWLDOO\LQGLFDWHVWKHTXDOLW\RIDLU%DVLFLQIRUPDWLRQRQDLU SROOXWLRQKDVWREHH[DPLQHGLQGHWDLOWRGUDZFRQFOXVLRQVRQLWVLPSDFWRQDQ\ KXPDQDFWLYLW\$Q(,$LVDYHU\XVHIXOWRROIRUWKHVLWLQJRIDQHZLQGXVWU\$VL[ VWHSPRGHOLVDGRSWHGIRU(QYLURQPHQWDO,PSDFW$VVHVVPHQW(,$ VWXG\,PSRUWDQW FRPSRQHQWVRIDQ(,$VWXG\DUH>@

$LUSROOXWLRQVXUYH\HVVHQWLDOO\LQGLFDWHVWKHTXDOLW\RIDLU%DVLFLQIRUPDWLRQRQDLU SROOXWLRQKDVWREHH[DPLQHGLQGHWDLOWRGUDZFRQFOXVLRQVRQLWVLPSDFWRQDQ\ KXPDQDFWLYLW\$Q(,$LVDYHU\XVHIXOWRROIRUWKHVLWLQJRIDQHZLQGXVWU\$VL[ VWHSPRGHOLVDGRSWHGIRU(QYLURQPHQWDO,PSDFW$VVHVVPHQW(,$ VWXG\,PSRUWDQW FRPSRQHQWVRIDQ(,$VWXG\DUH>@

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

(,$LVFDUULHGRXWLQVDWJHV

(,$LVFDUULHGRXWLQVDWJHV

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

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

  $,5 32//87,21 ,03$&7 $66(660(17

  $,5 32//87,21 ,03$&7 $66(660(17

$LUSROOXWLRQVXUYH\HVVHQWLDOO\LQGLFDWHVWKHTXDOLW\RIDLU%DVLFLQIRUPDWLRQRQDLU SROOXWLRQKDVWREHH[DPLQHGLQGHWDLOWRGUDZFRQFOXVLRQVRQLWVLPSDFWRQDQ\ KXPDQDFWLYLW\$Q(,$LVDYHU\XVHIXOWRROIRUWKHVLWLQJRIDQHZLQGXVWU\$VL[ VWHSPRGHOLVDGRSWHGIRU(QYLURQPHQWDO,PSDFW$VVHVVPHQW(,$ VWXG\,PSRUWDQW FRPSRQHQWVRIDQ(,$VWXG\DUH>@

$LUSROOXWLRQVXUYH\HVVHQWLDOO\LQGLFDWHVWKHTXDOLW\RIDLU%DVLFLQIRUPDWLRQRQDLU SROOXWLRQKDVWREHH[DPLQHGLQGHWDLOWRGUDZFRQFOXVLRQVRQLWVLPSDFWRQDQ\ KXPDQDFWLYLW\$Q(,$LVDYHU\XVHIXOWRROIRUWKHVLWLQJRIDQHZLQGXVWU\$VL[ VWHSPRGHOLVDGRSWHGIRU(QYLURQPHQWDO,PSDFW$VVHVVPHQW(,$ VWXG\,PSRUWDQW FRPSRQHQWVRIDQ(,$VWXG\DUH>@

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

(,$LVFDUULHGRXWLQVDWJHV

(,$LVFDUULHGRXWLQVDWJHV

6XVSHQGHG SDUWL FXODWHV )LOWHU1R      



0RUQLQJ $IWHUQRRQ (YHQLQJ 1LJKW 1LWURJHQ 0RUQLQJ GLR[LGH $IWHUQRRQ (YHQLQJ 1LJKW +\GURJHQ 0RUQLQJ VXOSKLGH $IWHUQRRQ (YHQLQJ 1LJKW

6XOSKXU GLR[LGH

6XVSHQGHG SDUWL FXODWHV )LOWHU1R      









7LPH )URP 7R

1RRI KRXUV

([SRVXUHSHULRGRIWKHMDU )URP WR 7RWDOQXPEHU RI GD\V ([SRVXUHSHULRGRIWKH QXPEHU RI GD\V 'DWHRIVDPSOLQJ )URP 7R 7RWDOKRXUV UXQ

0RUQLQJ $IWHUQRRQ (YHQLQJ 1LJKW 1LWURJHQ 0RUQLQJ GLR[LGH $IWHUQRRQ (YHQLQJ 1LJKW +\GURJHQ 0RUQLQJ VXOSKLGH $IWHUQRRQ (YHQLQJ 1LJKW

6XOSKXU GLR[LGH

3HULRGRI WKHGD\

6XOSKDWLRQUDWH



*DVHRXV SROOXWDQW

'XVWIDOOMDU



1RRI KRXUV

=RQH

7LPH )URP 7R

7RWDO —JLQ VDPSOH

9ROXPH RI DLU VDPSOHG OLWUHV

7RWDO —JLQ VDPSOH

2SHQ VXUIDFH DUHDRIWKH MDULQFP :HLJKWRI%D62 PJ :HLJKWRI GHSRVLWPJ

6XUYH\RU

&RQFHQWUDWLRQ :LQG 9HOR RISROOXWDQW 'LUHF FLW\ —JOLWSSPHWF WLRQ

:DWHU :DWHULQVROXEOH VROXEOH PJ PJ 6XOSKDWLRQUDWH PJ62  )ORZ UDWH 7RWDOYROXPHRI PPLQ DLUVDPSOHGP

6XUYH\RU

&RQFHQWUDWLRQ :LQG 9HOR RISROOXWDQW 'LUHF FLW\ —JOLWSSPHWF WLRQ

:DWHU :DWHULQVROXEOH VROXEOH PJ PJ 6XOSKDWLRQUDWH PJ62  )ORZ UDWH 7RWDOYROXPHRI PPLQ DLUVDPSOHGP

5HVLGHQWLDO&RPPHULFDO ,QGXVWULDO

9ROXPH RI DLU VDPSOHG OLWUHV

2SHQ VXUIDFH DUHDRIWKH MDULQFP :HLJKWRI%D62 PJ :HLJKWRI GHSRVLWPJ

5HVLGHQWLDO&RPPHULFDO ,QGXVWULDO

7HPSHUDWXUH 'U\ :HW 

—JPRI SDUWLFXODWHV

FPGD\

7RWDOGXVW IDOOPJ

$QDO\VW

7HPSHUDWXUH 'U\ :HW 

—JPRI SDUWLFXODWHV

FPGD\

7RWDOGXVW IDOOPJ

$QDO\VW

5HPDUNV

5HPDUNV

:HDWKHU FRQGLWLRQV KXPLGLW\ FORXG\ UDLQ\

5HPDUNV

7RQVNP  GD\V

'DWH

5HPDUNV

5HPDUNV

:HDWKHU FRQGLWLRQV KXPLGLW\ FORXG\ UDLQ\

5HPDUNV

7RQVNP  GD\V

'DWH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

/RFDWLRQRIWKHVDPSOLQJ VWDWLRQ

=RQH

([SRVXUHSHULRGRIWKHMDU )URP WR 7RWDOQXPEHU RI GD\V ([SRVXUHSHULRGRIWKH QXPEHU RI GD\V 'DWHRIVDPSOLQJ )URP 7R 7RWDOKRXUV UXQ

7DEOH$LUSROOXWLRQGDWDVKHHW







3HULRGRI WKHGD\

6XOSKDWLRQUDWH



*DVHRXV SROOXWDQW

'XVWIDOOMDU



/RFDWLRQRIWKHVDPSOLQJ VWDWLRQ

7DEOH$LUSROOXWLRQGDWDVKHHW

6XVSHQGHG SDUWL FXODWHV )LOWHU1R      



0RUQLQJ $IWHUQRRQ (YHQLQJ 1LJKW 1LWURJHQ 0RUQLQJ GLR[LGH $IWHUQRRQ (YHQLQJ 1LJKW +\GURJHQ 0RUQLQJ VXOSKLGH $IWHUQRRQ (YHQLQJ 1LJKW

6XOSKXU GLR[LGH







1RRI KRXUV

=RQH

7LPH )URP 7R

7LPH )URP 7R

1RRI KRXUV

([SRVXUHSHULRGRIWKHMDU )URP WR 7RWDOQXPEHU RI GD\V ([SRVXUHSHULRGRIWKH QXPEHU RI GD\V 'DWHRIVDPSOLQJ )URP 7R 7RWDOKRXUV UXQ

0RUQLQJ $IWHUQRRQ (YHQLQJ 1LJKW 1LWURJHQ 0RUQLQJ GLR[LGH $IWHUQRRQ (YHQLQJ 1LJKW +\GURJHQ 0RUQLQJ VXOSKLGH $IWHUQRRQ (YHQLQJ 1LJKW

6XOSKXU GLR[LGH

3HULRGRI WKHGD\

6XVSHQGHG SDUWL FXODWHV )LOWHU1R      

6XOSKDWLRQUDWH

'XVWIDOOMDU

*DVHRXV SROOXWDQW







/RFDWLRQRIWKHVDPSOLQJ VWDWLRQ

=RQH ([SRVXUHSHULRGRIWKHMDU )URP WR 7RWDOQXPEHU RI GD\V ([SRVXUHSHULRGRIWKH QXPEHU RI GD\V 'DWHRIVDPSOLQJ )URP 7R 7RWDOKRXUV UXQ

7DEOH$LUSROOXWLRQGDWDVKHHW







3HULRGRI WKHGD\

6XOSKDWLRQUDWH



*DVHRXV SROOXWDQW

'XVWIDOOMDU



/RFDWLRQRIWKHVDPSOLQJ VWDWLRQ

7DEOH$LUSROOXWLRQGDWDVKHHW

7RWDO —JLQ VDPSOH

9ROXPH RI DLU VDPSOHG OLWUHV

7RWDO —JLQ VDPSOH

2SHQ VXUIDFH DUHDRIWKH MDULQFP :HLJKWRI%D62 PJ :HLJKWRI GHSRVLWPJ

6XUYH\RU

&RQFHQWUDWLRQ :LQG 9HOR RISROOXWDQW 'LUHF FLW\ —JOLWSSPHWF WLRQ

:DWHU :DWHULQVROXEOH VROXEOH PJ PJ 6XOSKDWLRQUDWH PJ62  )ORZ UDWH 7RWDOYROXPHRI PPLQ DLUVDPSOHGP

6XUYH\RU

&RQFHQWUDWLRQ :LQG 9HOR RISROOXWDQW 'LUHF FLW\ —JOLWSSPHWF WLRQ

:DWHU :DWHULQVROXEOH VROXEOH PJ PJ 6XOSKDWLRQUDWH PJ62  )ORZ UDWH 7RWDOYROXPHRI PPLQ DLUVDPSOHGP

5HVLGHQWLDO&RPPHULFDO ,QGXVWULDO

9ROXPH RI DLU VDPSOHG OLWUHV

2SHQ VXUIDFH DUHDRIWKH MDULQFP :HLJKWRI%D62 PJ :HLJKWRI GHSRVLWPJ

5HVLGHQWLDO&RPPHULFDO ,QGXVWULDO

7HPSHUDWXUH 'U\ :HW 

—JPRI SDUWLFXODWHV

FPGD\

7RWDOGXVW IDOOPJ

$QDO\VW

7HPSHUDWXUH 'U\ :HW 

—JPRI SDUWLFXODWHV

FPGD\

7RWDOGXVW IDOOPJ

$QDO\VW

5HPDUNV

5HPDUNV

:HDWKHU FRQGLWLRQV KXPLGLW\ FORXG\ UDLQ\

5HPDUNV

7RQVNP  GD\V

'DWH

5HPDUNV

5HPDUNV

:HDWKHU FRQGLWLRQV KXPLGLW\ FORXG\ UDLQ\

5HPDUNV

7RQVNP  GD\V

'DWH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV  3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

 6WHS 4XDQWLI\LQJ ,QSXW 3DUDPHWHUV

 6WHS 4XDQWLI\LQJ ,QSXW 3DUDPHWHUV

+HUHRQHKDVWRH[DPLQHWKHYDULRXVW\SHVDQGTXDQWLWLHVRISROOXWDQWVJHQHUDWHG GXULQJFRQVWUXFWLRQDQGRSHUDWLRQRIWKHSURSRVHGSURMHFW(PLVVLRQIDFWRUVKDYH WR EH GHWHUPLQHG IRU YDULRXV RSHUDWLRQV LQYROYHG LQ WKH SURMHFW 7KH HPLVVLRQ IDFWRUVUHODWHWKHW\SHDQGTXDQWLWLHVRISROOXWDQWVZLWKWKHSURGXFWLRQFDSDFLW\ IXHOFRQVXPSWLRQDQGYHKLFOH±NPVWUDYHOOHGE\DQDXWRPRELOH7DEOHV OLVWVRPHW\SLFDOGDWD

+HUHRQHKDVWRH[DPLQHWKHYDULRXVW\SHVDQGTXDQWLWLHVRISROOXWDQWVJHQHUDWHG GXULQJFRQVWUXFWLRQDQGRSHUDWLRQRIWKHSURSRVHGSURMHFW(PLVVLRQIDFWRUVKDYH WR EH GHWHUPLQHG IRU YDULRXV RSHUDWLRQV LQYROYHG LQ WKH SURMHFW 7KH HPLVVLRQ IDFWRUVUHODWHWKHW\SHDQGTXDQWLWLHVRISROOXWDQWVZLWKWKHSURGXFWLRQFDSDFLW\ IXHOFRQVXPSWLRQDQGYHKLFOH±NPVWUDYHOOHGE\DQDXWRPRELOH7DEOHV OLVWVRPHW\SLFDOGDWD

7DEOH  1RUPDO HPLVVLRQ IDFWRUV IRU LQFLQHUDWRUV

7DEOH  1RUPDO HPLVVLRQ IDFWRUV IRU LQFLQHUDWRUV

61R ,QFLQHUDWRU W\SH

3DUWLFXODWHV NJ07



0XQLFLSDO 0XOWLSOHFKDPEHU XQFRQWUROOHG



:LWKVHWWOLQJ FKDPEHUDQG ZDWHUVSUD\ V\VWHP



,QGXVWULDOFRPPHUFLDO PXOWLSOHFKDPEHU



 

6XOSKXU GLR[LGH NJ07 DV 62

&DUERQ PRQR[LGH NJ07













+\GURFDUERQV DV&+ NJ07



 

1LWURJHQ R[LGHV NJ07 DV12

61R ,QFLQHUDWRU W\SH

3DUWLFXODWHV NJ07

6XOSKXU GLR[LGH NJ07 DV 62

&DUERQ PRQR[LGH NJ07

+\GURFDUERQV DV&+ NJ07

1LWURJHQ R[LGHV NJ07 DV12



0XQLFLSDO 0XOWLSOHFKDPEHU XQFRQWUROOHG













:LWKVHWWOLQJ FKDPEHUDQG ZDWHUVSUD\ V\VWHP













,QGXVWULDOFRPPHUFLDO PXOWLSOHFKDPEHU













 



6LQJOHFKDPEHU













6LQJOHFKDPEHU













&RQWUROOHGDLU





±YH

±YH





&RQWUROOHGDLU





±YH

±YH





)OXHIHG













)OXHIHG













)OXHIHG PRGLILHG













)OXHIHG PRGLILHG













'RPHVWLFVLQJOH FKDPEHU ZLWKRXW SULPDU\ EXUQHU

 









'RPHVWLFVLQJOH FKDPEHU ZLWKRXW SULPDU\ EXUQHU













:LWKSULPDU\EXUQHU





±YH







:LWKSULPDU\EXUQHU





±YH







3DWKRORJLFDO



±YH

±YH

±YH





3DWKRORJLFDO



±YH

±YH

±YH



 6WHS (VWDEOLVKPHQW RI WKH %DVH 'DWD

 6WHS (VWDEOLVKPHQW RI WKH %DVH 'DWD

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

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

 6WHS 4XDQWLI\LQJ ,QSXW 3DUDPHWHUV

 6WHS 4XDQWLI\LQJ ,QSXW 3DUDPHWHUV

+HUHRQHKDVWRH[DPLQHWKHYDULRXVW\SHVDQGTXDQWLWLHVRISROOXWDQWVJHQHUDWHG GXULQJFRQVWUXFWLRQDQGRSHUDWLRQRIWKHSURSRVHGSURMHFW(PLVVLRQIDFWRUVKDYH WR EH GHWHUPLQHG IRU YDULRXV RSHUDWLRQV LQYROYHG LQ WKH SURMHFW 7KH HPLVVLRQ IDFWRUVUHODWHWKHW\SHDQGTXDQWLWLHVRISROOXWDQWVZLWKWKHSURGXFWLRQFDSDFLW\ IXHOFRQVXPSWLRQDQGYHKLFOH±NPVWUDYHOOHGE\DQDXWRPRELOH7DEOHV OLVWVRPHW\SLFDOGDWD

+HUHRQHKDVWRH[DPLQHWKHYDULRXVW\SHVDQGTXDQWLWLHVRISROOXWDQWVJHQHUDWHG GXULQJFRQVWUXFWLRQDQGRSHUDWLRQRIWKHSURSRVHGSURMHFW(PLVVLRQIDFWRUVKDYH WR EH GHWHUPLQHG IRU YDULRXV RSHUDWLRQV LQYROYHG LQ WKH SURMHFW 7KH HPLVVLRQ IDFWRUVUHODWHWKHW\SHDQGTXDQWLWLHVRISROOXWDQWVZLWKWKHSURGXFWLRQFDSDFLW\ IXHOFRQVXPSWLRQDQGYHKLFOH±NPVWUDYHOOHGE\DQDXWRPRELOH7DEOHV OLVWVRPHW\SLFDOGDWD

7DEOH  1RUPDO HPLVVLRQ IDFWRUV IRU LQFLQHUDWRUV

7DEOH  1RUPDO HPLVVLRQ IDFWRUV IRU LQFLQHUDWRUV

61R ,QFLQHUDWRU W\SH

3DUWLFXODWHV NJ07



0XQLFLSDO 0XOWLSOHFKDPEHU XQFRQWUROOHG

6XOSKXU GLR[LGH NJ07 DV 62

&DUERQ PRQR[LGH NJ07

+\GURFDUERQV DV&+ NJ07

1LWURJHQ R[LGHV NJ07 DV12

61R ,QFLQHUDWRU W\SH

NJ07

6XOSKXU GLR[LGH NJ07 DV 62

&DUERQ PRQR[LGH NJ07

+\GURFDUERQV DV&+ NJ07

1LWURJHQ R[LGHV NJ07 DV12

0XQLFLSDO 0XOWLSOHFKDPEHU XQFRQWUROOHG













:LWKVHWWOLQJ FKDPEHUDQG ZDWHUVSUD\ V\VWHP













,QGXVWULDOFRPPHUFLDO PXOWLSOHFKDPEHU

 









3DUWLFXODWHV



:LWKVHWWOLQJ FKDPEHUDQG ZDWHUVSUD\ V\VWHP



,QGXVWULDOFRPPHUFLDO PXOWLSOHFKDPEHU























6LQJOHFKDPEHU













6LQJOHFKDPEHU













&RQWUROOHGDLU





±YH

±YH





&RQWUROOHGDLU





±YH

±YH





)OXHIHG













)OXHIHG













)OXHIHG PRGLILHG













)OXHIHG PRGLILHG













'RPHVWLFVLQJOH FKDPEHU ZLWKRXW SULPDU\ EXUQHU

 









'RPHVWLFVLQJOH FKDPEHU ZLWKRXW SULPDU\ EXUQHU













:LWKSULPDU\EXUQHU





±YH







:LWKSULPDU\EXUQHU





±YH







3DWKRORJLFDO



±YH

±YH

±YH





3DWKRORJLFDO



±YH

±YH

±YH













 6WHS (VWDEOLVKPHQW RI WKH %DVH 'DWD

 6WHS (VWDEOLVKPHQW RI WKH %DVH 'DWD

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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH  1RUPDO HPLVVLRQ IDFWRUV IRU SDVVHQJHU YHKLFOHV

7DEOH  1RUPDO HPLVVLRQ IDFWRUV IRU SDVVHQJHU YHKLFOHV

7UDQVSRUWPRGH

&2 JNP

2UJDQLF FRPSRXQGV SSPNP

&2 JNP

12[ JNP

62[ JNP

7UDQVSRUWPRGH

&2 JNP

2UJDQLF FRPSRXQGV SSPNP

&2 JNP

12[ JNP

62[ JNP

7UXFN SHWURO 6LQJOH RFFXSDQF\ $YHUDJH RFFXSDQF\

 

 

 

 

 

7UXFN SHWURO 6LQJOH RFFXSDQF\ $YHUDJH RFFXSDQF\

 

 

 

 

 

&DU 6LQJOH RFFXSDQF\ $YHUDJH RFFXSDQF\

 

 

 

 

 

&DU 6LQJOH RFFXSDQF\ $YHUDJH RFFXSDQF\

 

 

 

 

 

9HKLFOH ULGH VKDUH 7KUHHSHUVRQ FDU SRRO )RXUSHUVRQ FDU SRRO 1LQHSHUVRQFDUSRRO

  

  

  

  

  

9HKLFOH ULGH VKDUH 7KUHHSHUVRQ FDU SRRO )RXUSHUVRQ FDU SRRO 1LQHSHUVRQFDUSRRO

  

  

  

  

  

%XV GLHVHO 7UDQVLW 'LHVHO (OHFWULF &RPPXWHUGLHVHO 7UDQVLW HOHFWULF $LUFUDIW

     

  QHJ  QHJ 

     

     

1$     

%XV GLHVHO 7UDQVLW 'LHVHO (OHFWULF &RPPXWHUGLHVHO 7UDQVLW HOHFWULF $LUFUDIW

     

  QHJ  QHJ 

     

     

1$     

(,$IRUWKHVWXG\DUHDPXVWFRQWDLQVHYHUDOJULGVRIDSSURSLUDWHDUHDLQVT NP  DV PHQWLRQHG LQ 6HFWLRQ  (PLVVLRQ LQYHQWRU\ IRU HDFK JULG PXVW EH FRPELQHG WR REWDLQ DQ RYHUDOO GLVSHUVLRQ VFHQDULR RI DLU SROOXWDQWV $OO WKH PHWHRURORJLFDO GDWD LQFOXGLQJ ZLQG URVHV PL[LQJ KHLJKW LQYHUVLRQ KHLJKW DQG PHDQDQQXDOZLQGVSHHGVHWFPXVWEHLQFRUSRUDWHGLQWKLVVWHS$TXDOLWDWLYH DVVHVVPHQW RI WKH DWPRVSKHULF GLVSHUVLRQ RI WKH DLU SROOXWDQWV LV PDGH DW WKLV VWDJH

(,$IRUWKHVWXG\DUHDPXVWFRQWDLQVHYHUDOJULGVRIDSSURSLUDWHDUHDLQVT NP  DV PHQWLRQHG LQ 6HFWLRQ  (PLVVLRQ LQYHQWRU\ IRU HDFK JULG PXVW EH FRPELQHG WR REWDLQ DQ RYHUDOO GLVSHUVLRQ VFHQDULR RI DLU SROOXWDQWV $OO WKH PHWHRURORJLFDO GDWD LQFOXGLQJ ZLQG URVHV PL[LQJ KHLJKW LQYHUVLRQ KHLJKW DQG PHDQDQQXDOZLQGVSHHGVHWFPXVWEHLQFRUSRUDWHGLQWKLVVWHS$TXDOLWDWLYH DVVHVVPHQW RI WKH DWPRVSKHULF GLVSHUVLRQ RI WKH DLU SROOXWDQWV LV PDGH DW WKLV VWDJH

 6WHS(YDOXDWLRQRI([LVWLQJ1RUPV

 6WHS(YDOXDWLRQRI([LVWLQJ1RUPV

,QIRUPDWLRQRQDLUTXDOLW\VWDQGDUGVFULWHULDSROLFLHVRIORFDO6WDWHDQG&HQWUDO 3ROOXWLRQ&RQWURO%RDUGVQHHGWREHGRFXPHQWHG7KLVIDFLOLWDWHVWKHGHWHUPLQDWLRQ RIWKHVLJQLILFDQFHRIDLUTXDOLW\LPSDFWVRFFXUULQJGXULQJWKHSURMHFWLPSOHPHQWDWLRQ VWDJHZKLFKZLOODLGLQGHFLGLQJEHWZHHQDOWHUQDWLYHDFWLRQVRUPLWLJDWLRQPHDVXUHV WREHDGRSWHG6SHFLILFDLUTXDOLW\SROLFLHVRUUHTXLUHPHQWVPD\EHLQH[LVWHQFHIRU SDUWLFXODUDUHDVZKLFKQHHGVVSHFLDODWWHQWLRQ

,QIRUPDWLRQRQDLUTXDOLW\VWDQGDUGVFULWHULDSROLFLHVRIORFDO6WDWHDQG&HQWUDO 3ROOXWLRQ&RQWURO%RDUGVQHHGWREHGRFXPHQWHG7KLVIDFLOLWDWHVWKHGHWHUPLQDWLRQ RIWKHVLJQLILFDQFHRIDLUTXDOLW\LPSDFWVRFFXUULQJGXULQJWKHSURMHFWLPSOHPHQWDWLRQ VWDJHZKLFKZLOODLGLQGHFLGLQJEHWZHHQDOWHUQDWLYHDFWLRQVRUPLWLJDWLRQPHDVXUHV WREHDGRSWHG6SHFLILFDLUTXDOLW\SROLFLHVRUUHTXLUHPHQWVPD\EHLQH[LVWHQFHIRU SDUWLFXODUDUHDVZKLFKQHHGVVSHFLDODWWHQWLRQ

 6WHS(VWLPDWLRQRI,PSDFWV

 6WHS(VWLPDWLRQRI,PSDFWV

,PSDFW DVVHVVPHQW LV FDUULHG RXW XVLQJ PDVV EDODQFHV DPELHQW DLU GLVSHUVLRQ PRGHOV DQG SOXPH GLVSHUVLRQ PRGHOV 0DVV EDODQFH DSSURDFK FRQVLVWV RI WKH SUHSDUDWLRQ RI HPLVVLRQ LQYHQWRULHV GHSHQGLQJ RQ WKH SURFHVV FRPSXWDWLRQ RI

,PSDFW DVVHVVPHQW LV FDUULHG RXW XVLQJ PDVV EDODQFHV DPELHQW DLU GLVSHUVLRQ PRGHOV DQG SOXPH GLVSHUVLRQ PRGHOV 0DVV EDODQFH DSSURDFK FRQVLVWV RI WKH SUHSDUDWLRQ RI HPLVVLRQ LQYHQWRULHV GHSHQGLQJ RQ WKH SURFHVV FRPSXWDWLRQ RI

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH  1RUPDO HPLVVLRQ IDFWRUV IRU SDVVHQJHU YHKLFOHV

7DEOH  1RUPDO HPLVVLRQ IDFWRUV IRU SDVVHQJHU YHKLFOHV

7UDQVSRUWPRGH

&2 JNP

2UJDQLF FRPSRXQGV SSPNP

&2 JNP

12[ JNP

62[ JNP

7UDQVSRUWPRGH

&2 JNP

2UJDQLF FRPSRXQGV SSPNP

&2 JNP

12[ JNP

62[ JNP

7UXFN SHWURO 6LQJOH RFFXSDQF\ $YHUDJH RFFXSDQF\

 

 

 

 

 

7UXFN SHWURO 6LQJOH RFFXSDQF\ $YHUDJH RFFXSDQF\

 

 

 

 

 

&DU 6LQJOH RFFXSDQF\ $YHUDJH RFFXSDQF\

 

 

 

 

 

&DU 6LQJOH RFFXSDQF\ $YHUDJH RFFXSDQF\

 

 

 

 

 

9HKLFOH ULGH VKDUH 7KUHHSHUVRQ FDU SRRO )RXUSHUVRQ FDU SRRO 1LQHSHUVRQFDUSRRO

  

  

  

  

  

9HKLFOH ULGH VKDUH 7KUHHSHUVRQ FDU SRRO )RXUSHUVRQ FDU SRRO 1LQHSHUVRQFDUSRRO

  

  

  

  

  

%XV GLHVHO 7UDQVLW 'LHVHO (OHFWULF &RPPXWHUGLHVHO 7UDQVLW HOHFWULF $LUFUDIW

     

  QHJ  QHJ 

     

     

1$     

%XV GLHVHO 7UDQVLW 'LHVHO (OHFWULF &RPPXWHUGLHVHO 7UDQVLW HOHFWULF $LUFUDIW

     

  QHJ  QHJ 

     

     

1$     

(,$IRUWKHVWXG\DUHDPXVWFRQWDLQVHYHUDOJULGVRIDSSURSLUDWHDUHDLQVT NP  DV PHQWLRQHG LQ 6HFWLRQ  (PLVVLRQ LQYHQWRU\ IRU HDFK JULG PXVW EH FRPELQHG WR REWDLQ DQ RYHUDOO GLVSHUVLRQ VFHQDULR RI DLU SROOXWDQWV $OO WKH PHWHRURORJLFDO GDWD LQFOXGLQJ ZLQG URVHV PL[LQJ KHLJKW LQYHUVLRQ KHLJKW DQG PHDQDQQXDOZLQGVSHHGVHWFPXVWEHLQFRUSRUDWHGLQWKLVVWHS$TXDOLWDWLYH DVVHVVPHQW RI WKH DWPRVSKHULF GLVSHUVLRQ RI WKH DLU SROOXWDQWV LV PDGH DW WKLV VWDJH

(,$IRUWKHVWXG\DUHDPXVWFRQWDLQVHYHUDOJULGVRIDSSURSLUDWHDUHDLQVT NP  DV PHQWLRQHG LQ 6HFWLRQ  (PLVVLRQ LQYHQWRU\ IRU HDFK JULG PXVW EH FRPELQHG WR REWDLQ DQ RYHUDOO GLVSHUVLRQ VFHQDULR RI DLU SROOXWDQWV $OO WKH PHWHRURORJLFDO GDWD LQFOXGLQJ ZLQG URVHV PL[LQJ KHLJKW LQYHUVLRQ KHLJKW DQG PHDQDQQXDOZLQGVSHHGVHWFPXVWEHLQFRUSRUDWHGLQWKLVVWHS$TXDOLWDWLYH DVVHVVPHQW RI WKH DWPRVSKHULF GLVSHUVLRQ RI WKH DLU SROOXWDQWV LV PDGH DW WKLV VWDJH

 6WHS(YDOXDWLRQRI([LVWLQJ1RUPV

 6WHS(YDOXDWLRQRI([LVWLQJ1RUPV

,QIRUPDWLRQRQDLUTXDOLW\VWDQGDUGVFULWHULDSROLFLHVRIORFDO6WDWHDQG&HQWUDO 3ROOXWLRQ&RQWURO%RDUGVQHHGWREHGRFXPHQWHG7KLVIDFLOLWDWHVWKHGHWHUPLQDWLRQ RIWKHVLJQLILFDQFHRIDLUTXDOLW\LPSDFWVRFFXUULQJGXULQJWKHSURMHFWLPSOHPHQWDWLRQ VWDJHZKLFKZLOODLGLQGHFLGLQJEHWZHHQDOWHUQDWLYHDFWLRQVRUPLWLJDWLRQPHDVXUHV WREHDGRSWHG6SHFLILFDLUTXDOLW\SROLFLHVRUUHTXLUHPHQWVPD\EHLQH[LVWHQFHIRU SDUWLFXODUDUHDVZKLFKQHHGVVSHFLDODWWHQWLRQ

,QIRUPDWLRQRQDLUTXDOLW\VWDQGDUGVFULWHULDSROLFLHVRIORFDO6WDWHDQG&HQWUDO 3ROOXWLRQ&RQWURO%RDUGVQHHGWREHGRFXPHQWHG7KLVIDFLOLWDWHVWKHGHWHUPLQDWLRQ RIWKHVLJQLILFDQFHRIDLUTXDOLW\LPSDFWVRFFXUULQJGXULQJWKHSURMHFWLPSOHPHQWDWLRQ VWDJHZKLFKZLOODLGLQGHFLGLQJEHWZHHQDOWHUQDWLYHDFWLRQVRUPLWLJDWLRQPHDVXUHV WREHDGRSWHG6SHFLILFDLUTXDOLW\SROLFLHVRUUHTXLUHPHQWVPD\EHLQH[LVWHQFHIRU SDUWLFXODUDUHDVZKLFKQHHGVVSHFLDODWWHQWLRQ

 6WHS(VWLPDWLRQRI,PSDFWV

 6WHS(VWLPDWLRQRI,PSDFWV

,PSDFW DVVHVVPHQW LV FDUULHG RXW XVLQJ PDVV EDODQFHV DPELHQW DLU GLVSHUVLRQ PRGHOV DQG SOXPH GLVSHUVLRQ PRGHOV 0DVV EDODQFH DSSURDFK FRQVLVWV RI WKH SUHSDUDWLRQ RI HPLVVLRQ LQYHQWRULHV GHSHQGLQJ RQ WKH SURFHVV FRPSXWDWLRQ RI

,PSDFW DVVHVVPHQW LV FDUULHG RXW XVLQJ PDVV EDODQFHV DPELHQW DLU GLVSHUVLRQ PRGHOV DQG SOXPH GLVSHUVLRQ PRGHOV 0DVV EDODQFH DSSURDFK FRQVLVWV RI WKH SUHSDUDWLRQ RI HPLVVLRQ LQYHQWRULHV GHSHQGLQJ RQ WKH SURFHVV FRPSXWDWLRQ RI

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

DQQXDODYHUDJHVDQGDJJUHJDWHVDUULYLQJDWWKHRYHUDOOPDVVEDODQFHDFRPSDULVRQ ZLWKDVLPLODULQGXVWU\LILWH[LVWV DQGSUHSDUDWLRQRIFXPXODWLYHHPLVVLRQVIRUWKH ZKROHSURMHFW$PHVRVFDOHLPSDFWFDOFXODWLRQLVDUULYHGDWXVLQJWKHUHODWLRQ

DQQXDODYHUDJHVDQGDJJUHJDWHVDUULYLQJDWWKHRYHUDOOPDVVEDODQFHDFRPSDULVRQ ZLWKDVLPLODULQGXVWU\LILWH[LVWV DQGSUHSDUDWLRQRIFXPXODWLYHHPLVVLRQVIRUWKH ZKROHSURMHFW$PHVRVFDOHLPSDFWFDOFXODWLRQLVDUULYHGDWXVLQJWKHUHODWLRQ

 LQFUHDVH LQ WKH LQYHQWRU\

3URMHFW HPLVVLRQ LQYHQWRU\ ([LVWLQJ SURMHFW HPLVVLRQ LQYHQWRU\

7KHSHUFHQWDJHFKDQJHLQWKHFXUUHQWLQYHQWRU\IRURQHRUPRUHDLUSROOXWDQWVFDQ EHXVHGWRLQWHUSUHWDQGDVVHVVWKHLPSDFWRQWKHEDVLVRIIROORZLQJFULWHULD D E F G

([LVWLQJDLUTXDOLW\ 3HUFHQWFKDQJHDQGPDJQLWXGHRIFKDQJH 7LPHSHULRGRIH[SHFWHGFKDQJH ([SHFWHGGDPDJHWRORFDOUHFHSWRUV

 LQFUHDVH LQ WKH LQYHQWRU\

3URMHFW HPLVVLRQ LQYHQWRU\ ([LVWLQJ SURMHFW HPLVVLRQ LQYHQWRU\

7KHSHUFHQWDJHFKDQJHLQWKHFXUUHQWLQYHQWRU\IRURQHRUPRUHDLUSROOXWDQWVFDQ EHXVHGWRLQWHUSUHWDQGDVVHVVWKHLPSDFWRQWKHEDVLVRIIROORZLQJFULWHULD D E F G

([LVWLQJDLUTXDOLW\ 3HUFHQWFKDQJHDQGPDJQLWXGHRIFKDQJH 7LPHSHULRGRIH[SHFWHGFKDQJH ([SHFWHGGDPDJHWRORFDOUHFHSWRUV

([SHFWHG HPLVVLRQV PXVW DOVR EH H[DPLQHG YLVjYLV DSSOLFDEOH HPLVVLRQ VWDQGDUGV 7KH H[WHQW RI FRPSOLDQFH PXVW EH WKRURXJKO\ HYDOXDWHG XVLQJ PDVV EDODQFHER[PRGHOGLVSHUVLRQPRGHOVRUVRPHRWKHUPRGHOVZKLFKDUHEULHIO\ GLVFXVVHG EHORZ

([SHFWHG HPLVVLRQV PXVW DOVR EH H[DPLQHG YLVjYLV DSSOLFDEOH HPLVVLRQ VWDQGDUGV 7KH H[WHQW RI FRPSOLDQFH PXVW EH WKRURXJKO\ HYDOXDWHG XVLQJ PDVV EDODQFHER[PRGHOGLVSHUVLRQPRGHOVRUVRPHRWKHUPRGHOVZKLFKDUHEULHIO\ GLVFXVVHG EHORZ

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

%3DVTXLOO±*LIIRUG0RGHO 7KLVPRGHODOVRKDVEHHQGLVFXVVHGLQGHWDLOHDUOLHU,WLVDYHU\XVHIXOWRROIRU DVVHVVLQJWKHDLUTXDOLW\RIVLQJOHHOHYDWHGSRLQWVRXUFHVVXFKDVFKHPLFDOSODQWV WKHUPDO UHDFWRUV VWHDP JHQHUDWLRQ IDFLOLWLHV GLHVHO JHQHUDWRUV HWF 7KH PRGHO JLYHVWKHFRQFHQWUDWLRQOHYHORIDSROOXWDQWF[\R DWGRZQZLQGSRLQWVDVDIXQFWLRQ RIWKHGLVWDQFHIURPWKHVRXUFH

%3DVTXLOO±*LIIRUG0RGHO 7KLVPRGHODOVRKDVEHHQGLVFXVVHGLQGHWDLOHDUOLHU,WLVDYHU\XVHIXOWRROIRU DVVHVVLQJWKHDLUTXDOLW\RIVLQJOHHOHYDWHGSRLQWVRXUFHVVXFKDVFKHPLFDOSODQWV WKHUPDO UHDFWRUV VWHDP JHQHUDWLRQ IDFLOLWLHV GLHVHO JHQHUDWRUV HWF 7KH PRGHO JLYHVWKHFRQFHQWUDWLRQOHYHORIDSROOXWDQWF[\R DWGRZQZLQGSRLQWVDVDIXQFWLRQ RIWKHGLVWDQFHIURPWKHVRXUFH

&&RPSXWHU0RGHOV 2YHUWKH\HDUVDQXPEHURIFRPSXWHUEDVHGDLUTXDOLW\PRGHOVKDYHEHHQGHYHORSHG E\8QLWHG6WDWHV(QYLURQPHQWDO3URWHFWLRQ$JHQF\86(3$ XQGHU81$0$38VHUV

&&RPSXWHU0RGHOV 2YHUWKH\HDUVDQXPEHURIFRPSXWHUEDVHGDLUTXDOLW\PRGHOVKDYHEHHQGHYHORSHG E\8QLWHG6WDWHV(QYLURQPHQWDO3URWHFWLRQ$JHQF\86(3$ XQGHU81$0$38VHUV

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

DQQXDODYHUDJHVDQGDJJUHJDWHVDUULYLQJDWWKHRYHUDOOPDVVEDODQFHDFRPSDULVRQ ZLWKDVLPLODULQGXVWU\LILWH[LVWV DQGSUHSDUDWLRQRIFXPXODWLYHHPLVVLRQVIRUWKH ZKROHSURMHFW$PHVRVFDOHLPSDFWFDOFXODWLRQLVDUULYHGDWXVLQJWKHUHODWLRQ

DQQXDODYHUDJHVDQGDJJUHJDWHVDUULYLQJDWWKHRYHUDOOPDVVEDODQFHDFRPSDULVRQ ZLWKDVLPLODULQGXVWU\LILWH[LVWV DQGSUHSDUDWLRQRIFXPXODWLYHHPLVVLRQVIRUWKH ZKROHSURMHFW$PHVRVFDOHLPSDFWFDOFXODWLRQLVDUULYHGDWXVLQJWKHUHODWLRQ

 LQFUHDVH LQ WKH LQYHQWRU\

3URMHFW HPLVVLRQ LQYHQWRU\ ([LVWLQJ SURMHFW HPLVVLRQ LQYHQWRU\

7KHSHUFHQWDJHFKDQJHLQWKHFXUUHQWLQYHQWRU\IRURQHRUPRUHDLUSROOXWDQWVFDQ EHXVHGWRLQWHUSUHWDQGDVVHVVWKHLPSDFWRQWKHEDVLVRIIROORZLQJFULWHULD D E F G

([LVWLQJDLUTXDOLW\ 3HUFHQWFKDQJHDQGPDJQLWXGHRIFKDQJH 7LPHSHULRGRIH[SHFWHGFKDQJH ([SHFWHGGDPDJHWRORFDOUHFHSWRUV

 LQFUHDVH LQ WKH LQYHQWRU\

3URMHFW HPLVVLRQ LQYHQWRU\ ([LVWLQJ SURMHFW HPLVVLRQ LQYHQWRU\

7KHSHUFHQWDJHFKDQJHLQWKHFXUUHQWLQYHQWRU\IRURQHRUPRUHDLUSROOXWDQWVFDQ EHXVHGWRLQWHUSUHWDQGDVVHVVWKHLPSDFWRQWKHEDVLVRIIROORZLQJFULWHULD D E F G

([LVWLQJDLUTXDOLW\ 3HUFHQWFKDQJHDQGPDJQLWXGHRIFKDQJH 7LPHSHULRGRIH[SHFWHGFKDQJH ([SHFWHGGDPDJHWRORFDOUHFHSWRUV

([SHFWHG HPLVVLRQV PXVW DOVR EH H[DPLQHG YLVjYLV DSSOLFDEOH HPLVVLRQ VWDQGDUGV 7KH H[WHQW RI FRPSOLDQFH PXVW EH WKRURXJKO\ HYDOXDWHG XVLQJ PDVV EDODQFHER[PRGHOGLVSHUVLRQPRGHOVRUVRPHRWKHUPRGHOVZKLFKDUHEULHIO\ GLVFXVVHG EHORZ

([SHFWHG HPLVVLRQV PXVW DOVR EH H[DPLQHG YLVjYLV DSSOLFDEOH HPLVVLRQ VWDQGDUGV 7KH H[WHQW RI FRPSOLDQFH PXVW EH WKRURXJKO\ HYDOXDWHG XVLQJ PDVV EDODQFHER[PRGHOGLVSHUVLRQPRGHOVRUVRPHRWKHUPRGHOVZKLFKDUHEULHIO\ GLVFXVVHG EHORZ

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

%3DVTXLOO±*LIIRUG0RGHO 7KLVPRGHODOVRKDVEHHQGLVFXVVHGLQGHWDLOHDUOLHU,WLVDYHU\XVHIXOWRROIRU DVVHVVLQJWKHDLUTXDOLW\RIVLQJOHHOHYDWHGSRLQWVRXUFHVVXFKDVFKHPLFDOSODQWV WKHUPDO UHDFWRUV VWHDP JHQHUDWLRQ IDFLOLWLHV GLHVHO JHQHUDWRUV HWF 7KH PRGHO JLYHVWKHFRQFHQWUDWLRQOHYHORIDSROOXWDQWF[\R DWGRZQZLQGSRLQWVDVDIXQFWLRQ RIWKHGLVWDQFHIURPWKHVRXUFH

%3DVTXLOO±*LIIRUG0RGHO 7KLVPRGHODOVRKDVEHHQGLVFXVVHGLQGHWDLOHDUOLHU,WLVDYHU\XVHIXOWRROIRU DVVHVVLQJWKHDLUTXDOLW\RIVLQJOHHOHYDWHGSRLQWVRXUFHVVXFKDVFKHPLFDOSODQWV WKHUPDO UHDFWRUV VWHDP JHQHUDWLRQ IDFLOLWLHV GLHVHO JHQHUDWRUV HWF 7KH PRGHO JLYHVWKHFRQFHQWUDWLRQOHYHORIDSROOXWDQWF[\R DWGRZQZLQGSRLQWVDVDIXQFWLRQ RIWKHGLVWDQFHIURPWKHVRXUFH

&&RPSXWHU0RGHOV 2YHUWKH\HDUVDQXPEHURIFRPSXWHUEDVHGDLUTXDOLW\PRGHOVKDYHEHHQGHYHORSHG E\8QLWHG6WDWHV(QYLURQPHQWDO3URWHFWLRQ$JHQF\86(3$ XQGHU81$0$38VHUV

&&RPSXWHU0RGHOV 2YHUWKH\HDUVDQXPEHURIFRPSXWHUEDVHGDLUTXDOLW\PRGHOVKDYHEHHQGHYHORSHG E\8QLWHG6WDWHV(QYLURQPHQWDO3URWHFWLRQ$JHQF\86(3$ XQGHU81$0$38VHUV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

1HWZRUNIRU$SSOLHG0RGHOOLQJRI$LU3ROOXWLRQ SURJUDPPH,PSRUWDQWDPRQJ WKHPKDYHEHHQGHVFULEHGEHORZ7KHVHPRGHOVFDQEHGRZQORDGHGIUHHRUDYDLODEOH IRU SXUFKDVH

1HWZRUNIRU$SSOLHG0RGHOOLQJRI$LU3ROOXWLRQ SURJUDPPH,PSRUWDQWDPRQJ WKHPKDYHEHHQGHVFULEHGEHORZ7KHVHPRGHOVFDQEHGRZQORDGHGIUHHRUDYDLODEOH IRU SXUFKDVH

L

L

7KH6FUHHQ0RGHO7KLVLVD3&FRPSDWLEOHPRGHOXVHIXOIRUWKHLQLWLDOHYDOXDWLRQ RIWKHDLUTXDOLW\LPSDFWVIURPVWDWLRQDU\VRXUFHV>@7KH6FUHHQPRGHOLV XVHIXOWRFDOFXODWHWKHJURXQGOHYHOFRQFHQWUDWLRQVZKHQWKHGLVSHUVLRQRIWKH SROOXWDQWLVYHU\ORZ

7KH6FUHHQ0RGHO7KLVLVD3&FRPSDWLEOHPRGHOXVHIXOIRUWKHLQLWLDOHYDOXDWLRQ RIWKHDLUTXDOLW\LPSDFWVIURPVWDWLRQDU\VRXUFHV>@7KH6FUHHQPRGHOLV XVHIXOWRFDOFXODWHWKHJURXQGOHYHOFRQFHQWUDWLRQVZKHQWKHGLVSHUVLRQRIWKH SROOXWDQWLVYHU\ORZ

LL 7KH)XJLWLYH'XVW0RGHO7KLVLVDFRPSXWHUL]HGDLUTXDOLW\PRGHOGHVLJQHG IRUWKHFRPSXWDWLRQRIWKHFRQFHQWUDWLRQDQGGHSRVLWLRQVIURPIXJLWLYHGXVW HPLVVLRQV>@7KHDSSOLFDWLRQVLQFOXGHIXJLWLYHGXVWHPLVVLRQVHPLVVLRQVDW PLOLWDU\DLUEDVHVKHDY\JDVHRXVHYDSRUDWLRQVIURPWR[LFVSLOOVDQGKD]DUGRXV ZDVWHVLWHV(PLVVLRQVIURPHDFKVRXUFHDUHDSSRUWLRQHGE\WKHXVHULQWRD VHULHVRISDUWLFOHFODVVHVIRUZKLFKJUDYLWDWLRQDOVHWWOLQJYHORFLW\DQGDGHSRVLWLRQ YHORFLW\DUHFDOFXODWHG

LL 7KH)XJLWLYH'XVW0RGHO7KLVLVDFRPSXWHUL]HGDLUTXDOLW\PRGHOGHVLJQHG IRUWKHFRPSXWDWLRQRIWKHFRQFHQWUDWLRQDQGGHSRVLWLRQVIURPIXJLWLYHGXVW HPLVVLRQV>@7KHDSSOLFDWLRQVLQFOXGHIXJLWLYHGXVWHPLVVLRQVHPLVVLRQVDW PLOLWDU\DLUEDVHVKHDY\JDVHRXVHYDSRUDWLRQVIURPWR[LFVSLOOVDQGKD]DUGRXV ZDVWHVLWHV(PLVVLRQVIURPHDFKVRXUFHDUHDSSRUWLRQHGE\WKHXVHULQWRD VHULHVRISDUWLFOHFODVVHVIRUZKLFKJUDYLWDWLRQDOVHWWOLQJYHORFLW\DQGDGHSRVLWLRQ YHORFLW\DUHFDOFXODWHG

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

LY 6RXUFH'LVSHUVLRQ0RGHO$QHZVRXUFHGLVSHUVLRQDOJRULWKPIRUHPLVVLRQ VRXUFHV RI VXSHUIXQG VLWHV ZDV GHYHORSHG E\ -6 7RXPD RI 86(3$ 7KLV PRGHODGGUHVVHVVLWHVSHFLILFDUHDVRXUFHHPLVVLRQVDWKD]DUGRXVZDVWHVLWHV $IHZVHOHFWHG86(3$SOXPHPRGHOVDUHVKRZQLQ7DEOH>@

LY 6RXUFH'LVSHUVLRQ0RGHO$QHZVRXUFHGLVSHUVLRQDOJRULWKPIRUHPLVVLRQ VRXUFHV RI VXSHUIXQG VLWHV ZDV GHYHORSHG E\ -6 7RXPD RI 86(3$ 7KLV PRGHODGGUHVVHVVLWHVSHFLILFDUHDVRXUFHHPLVVLRQVDWKD]DUGRXVZDVWHVLWHV $IHZVHOHFWHG86(3$SOXPHPRGHOVDUHVKRZQLQ7DEOH>@

7DEOH&RPSXWHUVFUHHQPRGHOV

7DEOH&RPSXWHUVFUHHQPRGHOV

0RGHO

$YHUDJLQJWLPH

6&5((1 ,6&67 ,6&/7

+RXUO\GDLO\ +RXUO\WRDQQXDO 0RQWKO\WRVHDVRQDO DQQXDO 037(5 +RXUO\WRDQQXDO &203/(; +RXUO\WRDQQXDO 6+257= +RXUO\WRDQQXDO /81*= 6HDVRQDOWRDQQXDO

6RXUFH W\SH

7HUUDLQ

/DQG XVH

0RGHO

3RLQWDUHD 3RLQWDUHDYROXPH 3RLQWDUHDYROXPH

6LPSOHFRPSOH[ 6LPSOH 6LPSOH

5XUDOXUEDQ 5XUDOXUEDQ 5XUDOXUEDQ

6&5((1 ,6&67 ,6&/7

3RLQW 3RLQW 3RLQWDUHD 3RLQWDUHD

&RPSOH[ &RPSOH[ &RPSOH[ &RPSOH[

5XUDO 5XUDO 8UEDQ 8UEDQ

$YHUDJLQJWLPH

+RXUO\GDLO\ +RXUO\WRDQQXDO 0RQWKO\WRVHDVRQDO DQQXDO 037(5 +RXUO\WRDQQXDO &203/(; +RXUO\WRDQQXDO 6+257= +RXUO\WRDQQXDO /81*= 6HDVRQDOWRDQQXDO

6RXUFH W\SH

7HUUDLQ

/DQG XVH

3RLQWDUHD 3RLQWDUHDYROXPH 3RLQWDUHDYROXPH

6LPSOHFRPSOH[ 6LPSOH 6LPSOH

5XUDOXUEDQ 5XUDOXUEDQ 5XUDOXUEDQ

3RLQW 3RLQW 3RLQWDUHD 3RLQWDUHD

&RPSOH[ &RPSOH[ &RPSOH[ &RPSOH[

5XUDO 5XUDO 8UEDQ 8UEDQ

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

1HWZRUNIRU$SSOLHG0RGHOOLQJRI$LU3ROOXWLRQ SURJUDPPH,PSRUWDQWDPRQJ WKHPKDYHEHHQGHVFULEHGEHORZ7KHVHPRGHOVFDQEHGRZQORDGHGIUHHRUDYDLODEOH IRU SXUFKDVH

1HWZRUNIRU$SSOLHG0RGHOOLQJRI$LU3ROOXWLRQ SURJUDPPH,PSRUWDQWDPRQJ WKHPKDYHEHHQGHVFULEHGEHORZ7KHVHPRGHOVFDQEHGRZQORDGHGIUHHRUDYDLODEOH IRU SXUFKDVH

L

L

7KH6FUHHQ0RGHO7KLVLVD3&FRPSDWLEOHPRGHOXVHIXOIRUWKHLQLWLDOHYDOXDWLRQ RIWKHDLUTXDOLW\LPSDFWVIURPVWDWLRQDU\VRXUFHV>@7KH6FUHHQPRGHOLV XVHIXOWRFDOFXODWHWKHJURXQGOHYHOFRQFHQWUDWLRQVZKHQWKHGLVSHUVLRQRIWKH SROOXWDQWLVYHU\ORZ

7KH6FUHHQ0RGHO7KLVLVD3&FRPSDWLEOHPRGHOXVHIXOIRUWKHLQLWLDOHYDOXDWLRQ RIWKHDLUTXDOLW\LPSDFWVIURPVWDWLRQDU\VRXUFHV>@7KH6FUHHQPRGHOLV XVHIXOWRFDOFXODWHWKHJURXQGOHYHOFRQFHQWUDWLRQVZKHQWKHGLVSHUVLRQRIWKH SROOXWDQWLVYHU\ORZ

LL 7KH)XJLWLYH'XVW0RGHO7KLVLVDFRPSXWHUL]HGDLUTXDOLW\PRGHOGHVLJQHG IRUWKHFRPSXWDWLRQRIWKHFRQFHQWUDWLRQDQGGHSRVLWLRQVIURPIXJLWLYHGXVW HPLVVLRQV>@7KHDSSOLFDWLRQVLQFOXGHIXJLWLYHGXVWHPLVVLRQVHPLVVLRQVDW PLOLWDU\DLUEDVHVKHDY\JDVHRXVHYDSRUDWLRQVIURPWR[LFVSLOOVDQGKD]DUGRXV ZDVWHVLWHV(PLVVLRQVIURPHDFKVRXUFHDUHDSSRUWLRQHGE\WKHXVHULQWRD VHULHVRISDUWLFOHFODVVHVIRUZKLFKJUDYLWDWLRQDOVHWWOLQJYHORFLW\DQGDGHSRVLWLRQ YHORFLW\DUHFDOFXODWHG

LL 7KH)XJLWLYH'XVW0RGHO7KLVLVDFRPSXWHUL]HGDLUTXDOLW\PRGHOGHVLJQHG IRUWKHFRPSXWDWLRQRIWKHFRQFHQWUDWLRQDQGGHSRVLWLRQVIURPIXJLWLYHGXVW HPLVVLRQV>@7KHDSSOLFDWLRQVLQFOXGHIXJLWLYHGXVWHPLVVLRQVHPLVVLRQVDW PLOLWDU\DLUEDVHVKHDY\JDVHRXVHYDSRUDWLRQVIURPWR[LFVSLOOVDQGKD]DUGRXV ZDVWHVLWHV(PLVVLRQVIURPHDFKVRXUFHDUHDSSRUWLRQHGE\WKHXVHULQWRD VHULHVRISDUWLFOHFODVVHVIRUZKLFKJUDYLWDWLRQDOVHWWOLQJYHORFLW\DQGDGHSRVLWLRQ YHORFLW\DUHFDOFXODWHG

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

LY 6RXUFH'LVSHUVLRQ0RGHO$QHZVRXUFHGLVSHUVLRQDOJRULWKPIRUHPLVVLRQ VRXUFHV RI VXSHUIXQG VLWHV ZDV GHYHORSHG E\ -6 7RXPD RI 86(3$ 7KLV PRGHODGGUHVVHVVLWHVSHFLILFDUHDVRXUFHHPLVVLRQVDWKD]DUGRXVZDVWHVLWHV $IHZVHOHFWHG86(3$SOXPHPRGHOVDUHVKRZQLQ7DEOH>@

LY 6RXUFH'LVSHUVLRQ0RGHO$QHZVRXUFHGLVSHUVLRQDOJRULWKPIRUHPLVVLRQ VRXUFHV RI VXSHUIXQG VLWHV ZDV GHYHORSHG E\ -6 7RXPD RI 86(3$ 7KLV PRGHODGGUHVVHVVLWHVSHFLILFDUHDVRXUFHHPLVVLRQVDWKD]DUGRXVZDVWHVLWHV $IHZVHOHFWHG86(3$SOXPHPRGHOVDUHVKRZQLQ7DEOH>@

7DEOH&RPSXWHUVFUHHQPRGHOV

7DEOH&RPSXWHUVFUHHQPRGHOV

0RGHO 6&5((1 ,6&67 ,6&/7

$YHUDJLQJWLPH

+RXUO\GDLO\ +RXUO\WRDQQXDO 0RQWKO\WRVHDVRQDO DQQXDO 037(5 +RXUO\WRDQQXDO &203/(; +RXUO\WRDQQXDO 6+257= +RXUO\WRDQQXDO /81*= 6HDVRQDOWRDQQXDO

6RXUFH W\SH

7HUUDLQ

/DQG XVH

0RGHO

3RLQWDUHD 3RLQWDUHDYROXPH 3RLQWDUHDYROXPH

6LPSOHFRPSOH[ 6LPSOH 6LPSOH

5XUDOXUEDQ 5XUDOXUEDQ 5XUDOXUEDQ

6&5((1 ,6&67 ,6&/7

3RLQW 3RLQW 3RLQWDUHD 3RLQWDUHD

&RPSOH[ &RPSOH[ &RPSOH[ &RPSOH[

5XUDO 5XUDO 8UEDQ 8UEDQ

$YHUDJLQJWLPH

+RXUO\GDLO\ +RXUO\WRDQQXDO 0RQWKO\WRVHDVRQDO DQQXDO 037(5 +RXUO\WRDQQXDO &203/(; +RXUO\WRDQQXDO 6+257= +RXUO\WRDQQXDO /81*= 6HDVRQDOWRDQQXDO

6RXUFH W\SH

7HUUDLQ

/DQG XVH

3RLQWDUHD 3RLQWDUHDYROXPH 3RLQWDUHDYROXPH

6LPSOHFRPSOH[ 6LPSOH 6LPSOH

5XUDOXUEDQ 5XUDOXUEDQ 5XUDOXUEDQ

3RLQW 3RLQW 3RLQWDUHD 3RLQWDUHD

&RPSOH[ &RPSOH[ &RPSOH[ &RPSOH[

5XUDO 5XUDO 8UEDQ 8UEDQ

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

 6WHS $VVHVVPHQW RI ,PSDFW 6LJQLILFDQFH

 6WHS $VVHVVPHQW RI ,PSDFW 6LJQLILFDQFH

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

6WHS0LWLJDWLRQRU5HPHGLDWLRQ3ODQV

6WHS0LWLJDWLRQRU5HPHGLDWLRQ3ODQV

$QXQDFFHSWDEOHLPSDFWDVVHVVPHQWIRUDSURMHFWPXVWOHDGHLWKHUWRWKHUHYLVLRQ RUFDQFHOODWLRQRIWKHSURJUDPPH$OWHUQDWHO\VRPHPLWLJDWLRQRUUHPHGLDOSODQV PXVWEHLQSODFHWRUHGXFHWKHLPSDFWV,QVXFKVLWXDWLRQVVHYHUDODOWHUQDWLYHVFDQ EHFRQVLGHUHGZKLFKDUHHQXPHUDWHGEHORZ

$QXQDFFHSWDEOHLPSDFWDVVHVVPHQWIRUDSURMHFWPXVWOHDGHLWKHUWRWKHUHYLVLRQ RUFDQFHOODWLRQRIWKHSURJUDPPH$OWHUQDWHO\VRPHPLWLJDWLRQRUUHPHGLDOSODQV PXVWEHLQSODFHWRUHGXFHWKHLPSDFWV,QVXFKVLWXDWLRQVVHYHUDODOWHUQDWLYHVFDQ EHFRQVLGHUHGZKLFKDUHHQXPHUDWHGEHORZ

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

48(67,216

48(67,216

 :KDWGR\RXXQGHUVWDQGE\WKHWHUPµ$LU3ROOXWLRQ,QGH[¶"([SODLQLWV VLJQLILFDQFHDQGXVHVIRUWKHFRPPXQLW\

 :KDWGR\RXXQGHUVWDQGE\WKHWHUPµ$LU3ROOXWLRQ,QGH[¶"([SODLQLWV VLJQLILFDQFHDQGXVHVIRUWKHFRPPXQLW\

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

$LU3ROOXWLRQ,QGLFHVDQG6XUYH\V 

 6WHS $VVHVVPHQW RI ,PSDFW 6LJQLILFDQFH

 6WHS $VVHVVPHQW RI ,PSDFW 6LJQLILFDQFH

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

(YDOXDWLRQRIWKHVLJQLILFDQFHRIDQWLFLSDWHGFKDQJHVUHODWHGWRWKHSURSRVHGSURMHFW LVDPDWWHURISURIHVVLRQDOMXGJHPHQW7KHLQWHUUHODWLRQLVEDVHGRQWKHSHUFHQWDJH RI FKDQJH IURP EDVHOLQH FRQGLWLRQV LQ WHUPV RI HPLVVLRQ OHYHOV RU WKH H[SRVHG KXPDQSRSXODWLRQ36,FDQDOVREHXVHG7KHVHILQGLQJVDUHSODFHGLQSXEOLFPHHWLQJV RUSXEOLFSDUWLFLSDWLRQSURJUDPPHV ,WPXVWEHHPSKDVL]HGKHUHWKDWWKHLPSDFWDVVHVVPHQWLVDYDULDEOHIDFWRU )RUH[DPSOHWKHLPSDFWZLOOEHKLJKHUGXULQJFRQVWUXFWLRQSKDVHDQGUHGXFHWR QHJOLJLEOHRUDFFHSWDEOHOHYHOVGXULQJRSHUDWLRQ,QVXFKFDVHVQXPHULFDOVWDQGDUGV RUDLUTXDOLW\FULWHULDFDQEHXVHGDVDEDVLVIRULQWHUSUHWDWLRQ )LQDO DVVHVVPHQW RI WKH LPSDFW VLJQLILFDQFH LV WR EH EDVHG RQ WKH VSHFLILF HIIHFWVRIWKHSROOXWDQWVIURPWKHSURMHFWDQGLGHQWLILFDWLRQRIVHQVLWLYHUHFHSWRUV LQWKHDUHD>@

6WHS0LWLJDWLRQRU5HPHGLDWLRQ3ODQV

6WHS0LWLJDWLRQRU5HPHGLDWLRQ3ODQV

$QXQDFFHSWDEOHLPSDFWDVVHVVPHQWIRUDSURMHFWPXVWOHDGHLWKHUWRWKHUHYLVLRQ RUFDQFHOODWLRQRIWKHSURJUDPPH$OWHUQDWHO\VRPHPLWLJDWLRQRUUHPHGLDOSODQV PXVWEHLQSODFHWRUHGXFHWKHLPSDFWV,QVXFKVLWXDWLRQVVHYHUDODOWHUQDWLYHVFDQ EHFRQVLGHUHGZKLFKDUHHQXPHUDWHGEHORZ

$QXQDFFHSWDEOHLPSDFWDVVHVVPHQWIRUDSURMHFWPXVWOHDGHLWKHUWRWKHUHYLVLRQ RUFDQFHOODWLRQRIWKHSURJUDPPH$OWHUQDWHO\VRPHPLWLJDWLRQRUUHPHGLDOSODQV PXVWEHLQSODFHWRUHGXFHWKHLPSDFWV,QVXFKVLWXDWLRQVVHYHUDODOWHUQDWLYHVFDQ EHFRQVLGHUHGZKLFKDUHHQXPHUDWHGEHORZ

D 5HYLVLRQRIWKHSURMHFWZLWKGHVLJQDOWHUQDWLRQV E 5HJXODWRU\FRQWUROIRURSHQEXUQLQJZLWKUHVSHFWWRWLPLQJVRUGLVWDQFHIURP UHVLGHQWLDODUHDV F 'HYHORSPHQWRIYHJHWDWLRQFRYHUVZLQGEUHDNHUVDQGFKHPLFDOVWDELOL]HUV G 3DYLQJWKHVXUIDFHWUHDWLQJZLWKSHQHWUDWLRQFKHPLFDOVXVLQJVRLOVWDELOL]DWLRQ FKHPLFDOVRQWKHURDGEHGZDWHULQJWUDIILFFRQWURODQGXVHIXOIRUWKHUHGXFWLRQ RIGXVWHPLVVLRQV H 6XUIDFHLPSRXQGPHQWVODQGILOOVODQGWUHDWPHQWV\VWHPVZDVWHVWDELOL]DWLRQ WHFKQLTXHV I 8VHRIDOWHUQDWLYHIXHOVLQFOXGLQJPHWKDQROHWKDQROFRPSUHVVHGQDWXUDOJDV &1* HOHFWULFLW\UHIRUPHGJDVROLQHHWFWRUHGXFHFRPEXVWLRQHPLVVLRQV J ([KDXVWHPLVVLRQFRQWUROWHFKQRORJLHVIRUYHKLFOHV K ,QGXVWULDO FRQWURO V\VWHPV VXFK DV F\FORQHV VFUXEEHUV IDEULF ILOWHUV HOHFWURVWDWLFSUHFLSLWDWRUVIOXHJDVGHVXOSKXUL]DWLRQFDUERQDGVRUSWLRQWKHUPDO LQFLQHUDWLRQVIODUHVDEVRUSWLRQFRQGHQVDWLRQDQGUHODWHGLQGXVWULDORSHUDWLRQV IRUUHGXFLQJSROOXWDQWOHYHOVIURPSRLQWVRXUFHV

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

48(67,216

48(67,216

 :KDWGR\RXXQGHUVWDQGE\WKHWHUPµ$LU3ROOXWLRQ,QGH[¶"([SODLQLWV VLJQLILFDQFHDQGXVHVIRUWKHFRPPXQLW\

 :KDWGR\RXXQGHUVWDQGE\WKHWHUPµ$LU3ROOXWLRQ,QGH[¶"([SODLQLWV VLJQLILFDQFHDQGXVHVIRUWKHFRPPXQLW\

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³$LU3ROOXWLRQ+DQGERRN´0F*UDZ +LOO1HZ@

2WKHU PHWKRGV WKLV PHWKRG XSGDWHG DQG UHSODFHV 10$0  $XJXVW   ZKLFKFRPELQHGDQGUHSODFHG0HWKRG6>@DQG3 &$0>@

6SHFLDOSUHFDXWLRQV0HWKDQROLVIODPPDEOHDQGDGDQJHURXVILUHDQGH[SORVLRQ ULVN,WLVPRGHUDWHO\WR[LFE\LQJHVWLRQDQGLQKDODWLRQ,VRSURSDQROLVIODPPDEOH DQGDILUHULVN:HDUDSSURSULDWHSURWHFWLYHFORWKLQJDQGZRUNZLWKWKHVHFRPSRXQGV LQDZHOOYHQWLODWHGKRRG

6SHFLDOSUHFDXWLRQV0HWKDQROLVIODPPDEOHDQGDGDQJHURXVILUHDQGH[SORVLRQ ULVN,WLVPRGHUDWHO\WR[LFE\LQJHVWLRQDQGLQKDODWLRQ,VRSURSDQROLVIODPPDEOH DQGDILUHULVN:HDUDSSURSULDWHSURWHFWLYHFORWKLQJDQGZRUNZLWKWKHVHFRPSRXQGV LQDZHOOYHQWLODWHGKRRG

 6DPSOLQJ

 6DPSOLQJ

 &DOLEUDWHHDFKSHUVRQDOVDPSOLQJSXPSZLWKDUHSUHVHQWDWLYHVDPSOHULQOLQH  %UHDNHQGVRIVDPSOHULPPHGLDWHO\EHIRUHVDPSOLQJ$WWDFKVDPSOHUWRSHUVRQDO VDPSOLQJSXPSZLWKIOH[LEOHWXELQJ  6DPSOHDWDDFFXUDWHO\NQRZQIORZUDWHEHWZHHQDQG/PLQIRUWRWDO VDPSOHVL]HRIWR/  &DSWKHVDPSOHUVZLWKSODVWLFFDSVDQGSDFNVHFXUHO\IRUVKLSPHQW

 &DOLEUDWHHDFKSHUVRQDOVDPSOLQJSXPSZLWKDUHSUHVHQWDWLYHVDPSOHULQOLQH  %UHDNHQGVRIVDPSOHULPPHGLDWHO\EHIRUHVDPSOLQJ$WWDFKVDPSOHUWRSHUVRQDO VDPSOLQJSXPSZLWKIOH[LEOHWXELQJ  6DPSOHDWDDFFXUDWHO\NQRZQIORZUDWHEHWZHHQDQG/PLQIRUWRWDO VDPSOHVL]HRIWR/  &DSWKHVDPSOHUVZLWKSODVWLFFDSVDQGSDFNVHFXUHO\IRUVKLSPHQW

6DPSOHSUHSDUDWLRQ  3ODFHIURQWLQFOXGHJODVVZRROSOXJ DQGEDFNVRUEHQWVHFWLRQVRIWKHVDPSOHU WXEHLQVHSDUDWHYLDOV'LVFDUGIRDPSOXJV  $GGP/RIZDWHU,3$ WRHDFKYLDODQGDWWDFKFULPSFDSV  3ODFHYLDOVLQDQXOWUDVRQLFEDWKIRUWRPLQWRDLGGHVRUSWLRQ

6DPSOHSUHSDUDWLRQ  3ODFHIURQWLQFOXGHJODVVZRROSOXJ DQGEDFNVRUEHQWVHFWLRQVRIWKHVDPSOHU WXEHLQVHSDUDWHYLDOV'LVFDUGIRDPSOXJV  $GGP/RIZDWHU,3$ WRHDFKYLDODQGDWWDFKFULPSFDSV  3ODFHYLDOVLQDQXOWUDVRQLFEDWKIRUWRPLQWRDLGGHVRUSWLRQ

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

&ROXPQ &DOLEUDWLRQ 5DQJH (VWLPDWHG/2' 3UHFLVLRQ 6U  

&DSLOODU\PîPP,'—PILOP GLSKHQ\OGLPHWK\OSRO\VLOR]DQH 57[70RUHTXLYDOHQW>@ 6WDQGDUGVROXWLRQVRIPHWKDQROLQ ZDWHULVRSURSDQRO WR—JSHUVDPSOH>@ —JSHUVDPSOH>@ >@

&ROXPQ &DOLEUDWLRQ 5DQJH (VWLPDWHG/2' 3UHFLVLRQ 6U  

&DSLOODU\PîPP,'—PILOP GLSKHQ\OGLPHWK\OSRO\VLOR]DQH 57[70RUHTXLYDOHQW>@ 6WDQGDUGVROXWLRQVRIPHWKDQROLQ ZDWHULVRSURSDQRO WR—JSHUVDPSOH>@ —JSHUVDPSOH>@ >@

$SSOLFDELOLW\

$SSOLFDELOLW\

8QGHUWKH*&SDUDPHWHUVVWDWHGLQWKHPHWKRGPHWKDQROPD\EHLGHQWLILHGEDVHG XSRQ UHWHQWLRQ WLPH DQG TXDQWLILHG 7KH ZRUNLQJ UDQJH LV  WR  PJP WRSSP IRUD/DLUVDPSOH>@$WKLJKFRQFHQWUDWLRQVRIPHWKDQRORU XQGHU FRQGLWLRQV RI KLJK UHODWLYH KXPLGLW\ D ODUJH VLOLFD JHO WXEH  PJ  LV UHTXLUHG >@

8QGHUWKH*&SDUDPHWHUVVWDWHGLQWKHPHWKRGPHWKDQROPD\EHLGHQWLILHGEDVHG XSRQ UHWHQWLRQ WLPH DQG TXDQWLILHG 7KH ZRUNLQJ UDQJH LV  WR  PJP WRSSP IRUD/DLUVDPSOH>@$WKLJKFRQFHQWUDWLRQVRIPHWKDQRORU XQGHU FRQGLWLRQV RI KLJK UHODWLYH KXPLGLW\ D ODUJH VLOLFD JHO WXEH  PJ  LV UHTXLUHG >@

 ,QWHUIHUHQFHV

 ,QWHUIHUHQFHV

1RVSHFLILFLQWHUIHUHQFHVZHUHLGHQWLILHG+RZHYHUDQ\FRPSRXQGZLWKDVLPLODU UHWHQWLRQWLPHPD\LQWHUIHUH3RVLWLYHLGHQWLILFDWLRQFDQEHFRQILUPHGE\GXDOFROXPQ FKURPDWRJUDSK\ZLWKD3(*FDSLOODU\FROXPQ0DVVVSHFWURPHWU\FDQDOVR EHXVHGDVDFRQILUPDWLRQDLG

1RVSHFLILFLQWHUIHUHQFHVZHUHLGHQWLILHG+RZHYHUDQ\FRPSRXQGZLWKDVLPLODU UHWHQWLRQWLPHPD\LQWHUIHUH3RVLWLYHLGHQWLILFDWLRQFDQEHFRQILUPHGE\GXDOFROXPQ FKURPDWRJUDSK\ZLWKD3(*FDSLOODU\FROXPQ0DVVVSHFWURPHWU\FDQDOVR EHXVHGDVDFRQILUPDWLRQDLG

2WKHU PHWKRGV WKLV PHWKRG XSGDWHG DQG UHSODFHV 10$0  $XJXVW   ZKLFKFRPELQHGDQGUHSODFHG0HWKRG6>@DQG3 &$0>@

2WKHU PHWKRGV WKLV PHWKRG XSGDWHG DQG UHSODFHV 10$0  $XJXVW   ZKLFKFRPELQHGDQGUHSODFHG0HWKRG6>@DQG3 &$0>@

6SHFLDOSUHFDXWLRQV0HWKDQROLVIODPPDEOHDQGDGDQJHURXVILUHDQGH[SORVLRQ ULVN,WLVPRGHUDWHO\WR[LFE\LQJHVWLRQDQGLQKDODWLRQ,VRSURSDQROLVIODPPDEOH DQGDILUHULVN:HDUDSSURSULDWHSURWHFWLYHFORWKLQJDQGZRUNZLWKWKHVHFRPSRXQGV LQDZHOOYHQWLODWHGKRRG

6SHFLDOSUHFDXWLRQV0HWKDQROLVIODPPDEOHDQGDGDQJHURXVILUHDQGH[SORVLRQ ULVN,WLVPRGHUDWHO\WR[LFE\LQJHVWLRQDQGLQKDODWLRQ,VRSURSDQROLVIODPPDEOH DQGDILUHULVN:HDUDSSURSULDWHSURWHFWLYHFORWKLQJDQGZRUNZLWKWKHVHFRPSRXQGV LQDZHOOYHQWLODWHGKRRG

 6DPSOLQJ

 6DPSOLQJ

 &DOLEUDWHHDFKSHUVRQDOVDPSOLQJSXPSZLWKDUHSUHVHQWDWLYHVDPSOHULQOLQH  %UHDNHQGVRIVDPSOHULPPHGLDWHO\EHIRUHVDPSOLQJ$WWDFKVDPSOHUWRSHUVRQDO VDPSOLQJSXPSZLWKIOH[LEOHWXELQJ  6DPSOHDWDDFFXUDWHO\NQRZQIORZUDWHEHWZHHQDQG/PLQIRUWRWDO VDPSOHVL]HRIWR/  &DSWKHVDPSOHUVZLWKSODVWLFFDSVDQGSDFNVHFXUHO\IRUVKLSPHQW

 &DOLEUDWHHDFKSHUVRQDOVDPSOLQJSXPSZLWKDUHSUHVHQWDWLYHVDPSOHULQOLQH  %UHDNHQGVRIVDPSOHULPPHGLDWHO\EHIRUHVDPSOLQJ$WWDFKVDPSOHUWRSHUVRQDO VDPSOLQJSXPSZLWKIOH[LEOHWXELQJ  6DPSOHDWDDFFXUDWHO\NQRZQIORZUDWHEHWZHHQDQG/PLQIRUWRWDO VDPSOHVL]HRIWR/  &DSWKHVDPSOHUVZLWKSODVWLFFDSVDQGSDFNVHFXUHO\IRUVKLSPHQW

6DPSOHSUHSDUDWLRQ  3ODFHIURQWLQFOXGHJODVVZRROSOXJ DQGEDFNVRUEHQWVHFWLRQVRIWKHVDPSOHU WXEHLQVHSDUDWHYLDOV'LVFDUGIRDPSOXJV  $GGP/RIZDWHU,3$ WRHDFKYLDODQGDWWDFKFULPSFDSV  3ODFHYLDOVLQDQXOWUDVRQLFEDWKIRUWRPLQWRDLGGHVRUSWLRQ

6DPSOHSUHSDUDWLRQ  3ODFHIURQWLQFOXGHJODVVZRROSOXJ DQGEDFNVRUEHQWVHFWLRQVRIWKHVDPSOHU WXEHLQVHSDUDWHYLDOV'LVFDUGIRDPSOXJV  $GGP/RIZDWHU,3$ WRHDFKYLDODQGDWWDFKFULPSFDSV  3ODFHYLDOVLQDQXOWUDVRQLFEDWKIRUWRPLQWRDLGGHVRUSWLRQ

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

5HDJHQWV

(TXLSPHQW

5HDJHQWV

(TXLSPHQW

 0HWKDQRO FKURPDWRJUDSKLF JUDGH  :DWHU GLVWLOOHG DQG SUHSXULILHG  ,VRSURSDQRO ,3$  FKURPDWRJUDSKLF JUDGH  +HOLXPSXULILHG  +\GURJHQSUHSXULILHG  $LUILOWHUHG  'HVRUELQJ VROXWLRQ  LVRSURSDQRO LQ  GLVWLOOHG ZDWHU  &DOLEUDWLRQ VWRFN VROXWLRQ  —J—/ $GG  —/ PHWKDQRO WR  P/ RI GHVRUELQJVROXWLRQ

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—/ DQG RWKHU VL]HVDVQHHGHGUHDGDEOHWR—/  )ODVNVYROXPHWULFYDULRXVVL]HV  3LSHWVYDULRXVVL]HV

 0HWKDQRO FKURPDWRJUDSKLF JUDGH  :DWHU GLVWLOOHG DQG SUHSXULILHG  ,VRSURSDQRO ,3$  FKURPDWRJUDSKLF JUDGH  +HOLXPSXULILHG  +\GURJHQSUHSXULILHG  $LUILOWHUHG  'HVRUELQJ VROXWLRQ  LVRSURSDQRO LQ  GLVWLOOHG ZDWHU  &DOLEUDWLRQ VWRFN VROXWLRQ  —J—/ $GG  —/ PHWKDQRO WR  P/ RI GHVRUELQJVROXWLRQ

 6DPSOHU 6LOLFD JHO WXEH  FP ORQJ  PP ,' FRQWDLQLQJ WZR VHFWLRQV RI  PHVK VLOLFD JHO IURQW   PJ EDFN   PJ  VHSDUDWHG E\ D  PP XUHWKDQHIRDPSOXJ$VLO\ODWHGJODVVZRRO SOXJSUHFHGHVWKHIURQWVHFWLRQ$PP IRDP SOXJ IROORZV WKH EDFN VHFWLRQ 6DPSOHUVDUHFRPPHUFLDOO\DYDLODEOH 1RWH$WKLJKUHODWLYHKXPLGLW\RUKLJK PHWKDQRO FRQFHQWUDWLRQV XVH D ODUJHU WXEHFPORQJPP,'ZLWKWKUHH VHFWLRQVRIVLOLFDJHOPJPJ  PJ   3HUVRQDO VDPSOLQJ SXPS  WR  /PLQZLWKIOH[LEOHFRQQHFWLQJWXELQJ  *DV FKURPDWRJUDSK IODPH LRQL]DWLRQ GHWHFWLRQLQWHJUDWRUDQG5W[FDSLOODU\ FROXPQRUHTXLYDOHQWSDJH  8OWUDVRQLFEDWK  9LDOVDXWRVDPSOHUZLWK37)(OLQHGFDSV  0LFURPHWHU V\ULQJHV  —/ DQG RWKHU VL]HVDVQHHGHGUHDGDEOHWR—/  )ODVNVYROXPHWULFYDULRXVVL]HV  3LSHWVYDULRXVVL]HV

6HHVSHFLDOSUHFDXWLRQV

&DOLEUDWLRQDQGTXDOLW\FRQWURO  &DOLEUDWHGDLO\ZLWKDWOHDVWVL[ZRUNLQJVWDQGDUGVRYHUWKHUDQJHRILQWHUHVW 7KUHHVWDQGDUGVLQGXSOLFDWH VKRXOGFRYHUWKHUDQJHIURP/2'WR/24 D

$GG NQRZQ DPRXQWV RI FDOLEUDWLRQ VWRFN VROXWLRQ WR ZDWHULVRSURSDQRO  LQP/YROXPHWULFIODVNVDQGGLOXWHWRWKHPDUN E $QDO\VHWRJHWKHUZLWKVDPSOHVDQGEODQNVVWHSVDQG  F 3UHSDUHFDOLEUDWLRQJUDSKSHDNDUHDRUKHLJKWYV—JPHWKDQRO 

6HHVSHFLDOSUHFDXWLRQV

&DOLEUDWLRQDQGTXDOLW\FRQWURO  &DOLEUDWHGDLO\ZLWKDWOHDVWVL[ZRUNLQJVWDQGDUGVRYHUWKHUDQJHRILQWHUHVW 7KUHHVWDQGDUGVLQGXSOLFDWH VKRXOGFRYHUWKHUDQJHIURP/2'WR/24 D

$GG NQRZQ DPRXQWV RI FDOLEUDWLRQ VWRFN VROXWLRQ WR ZDWHULVRSURSDQRO  LQP/YROXPHWULFIODVNVDQGGLOXWHWRWKHPDUN E $QDO\VHWRJHWKHUZLWKVDPSOHVDQGEODQNVVWHSVDQG  F 3UHSDUHFDOLEUDWLRQJUDSKSHDNDUHDRUKHLJKWYV—JPHWKDQRO 

 'HWHUPLQHGHVRUSWLRQHIILFLHQF\'( DWOHDVWRQFHIRUHDFKORWRIVLOLFDJHO WXEHVXVHGIRUVDPSOLQJLQWKHFDOLEUDWLRQUDQJHVWHS 3UHSDUHWKUHHVDPSOHUV DWHDFKRIVL[OHYHOVSOXVWKUHHPHGLDEODQNV

 'HWHUPLQHGHVRUSWLRQHIILFLHQF\'( DWOHDVWRQFHIRUHDFKORWRIVLOLFDJHO WXEHVXVHGIRUVDPSOLQJLQWKHFDOLEUDWLRQUDQJHVWHS 3UHSDUHWKUHHVDPSOHUV DWHDFKRIVL[OHYHOVSOXVWKUHHPHGLDEODQNV

D 5HPRYHDQGGLVFDUGEDFNVRUEHQWVHFWLRQVRIVDPSOHUVDQGPHGLDEODQNV E ,QMHFW D NQRZQ DPRXQW RI FDOLEUDWLRQ VWRFN VROXWLRQ GLUHFWO\ RQWR WKH IURQWVRUEHQWEHGRIHDFKVLOLFDJHOWXEH

D 5HPRYHDQGGLVFDUGEDFNVRUEHQWVHFWLRQVRIVDPSOHUVDQGPHGLDEODQNV E ,QMHFW D NQRZQ DPRXQW RI FDOLEUDWLRQ VWRFN VROXWLRQ GLUHFWO\ RQWR WKH IURQWVRUEHQWEHGRIHDFKVLOLFDJHOWXEH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

5HDJHQWV

(TXLSPHQW

5HDJHQWV

(TXLSPHQW

 0HWKDQRO FKURPDWRJUDSKLF JUDGH  :DWHU GLVWLOOHG DQG SUHSXULILHG  ,VRSURSDQRO ,3$  FKURPDWRJUDSKLF JUDGH  +HOLXPSXULILHG  +\GURJHQSUHSXULILHG  $LUILOWHUHG  'HVRUELQJ VROXWLRQ  LVRSURSDQRO LQ  GLVWLOOHG ZDWHU  &DOLEUDWLRQ VWRFN VROXWLRQ  —J—/ $GG  —/ PHWKDQRO WR  P/ RI GHVRUELQJVROXWLRQ

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—/ DQG RWKHU VL]HVDVQHHGHGUHDGDEOHWR—/  )ODVNVYROXPHWULFYDULRXVVL]HV  3LSHWVYDULRXVVL]HV

 0HWKDQRO FKURPDWRJUDSKLF JUDGH  :DWHU GLVWLOOHG DQG SUHSXULILHG  ,VRSURSDQRO ,3$  FKURPDWRJUDSKLF JUDGH  +HOLXPSXULILHG  +\GURJHQSUHSXULILHG  $LUILOWHUHG  'HVRUELQJ VROXWLRQ  LVRSURSDQRO LQ  GLVWLOOHG ZDWHU  &DOLEUDWLRQ VWRFN VROXWLRQ  —J—/ $GG  —/ PHWKDQRO WR  P/ RI GHVRUELQJVROXWLRQ

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—/ DQG RWKHU VL]HVDVQHHGHGUHDGDEOHWR—/  )ODVNVYROXPHWULFYDULRXVVL]HV  3LSHWVYDULRXVVL]HV

6HHVSHFLDOSUHFDXWLRQV

&DOLEUDWLRQDQGTXDOLW\FRQWURO  &DOLEUDWHGDLO\ZLWKDWOHDVWVL[ZRUNLQJVWDQGDUGVRYHUWKHUDQJHRILQWHUHVW 7KUHHVWDQGDUGVLQGXSOLFDWH VKRXOGFRYHUWKHUDQJHIURP/2'WR/24 D

$GG NQRZQ DPRXQWV RI FDOLEUDWLRQ VWRFN VROXWLRQ WR ZDWHULVRSURSDQRO  LQP/YROXPHWULFIODVNVDQGGLOXWHWRWKHPDUN E $QDO\VHWRJHWKHUZLWKVDPSOHVDQGEODQNVVWHSVDQG  F 3UHSDUHFDOLEUDWLRQJUDSKSHDNDUHDRUKHLJKWYV—JPHWKDQRO 

6HHVSHFLDOSUHFDXWLRQV

&DOLEUDWLRQDQGTXDOLW\FRQWURO  &DOLEUDWHGDLO\ZLWKDWOHDVWVL[ZRUNLQJVWDQGDUGVRYHUWKHUDQJHRILQWHUHVW 7KUHHVWDQGDUGVLQGXSOLFDWH VKRXOGFRYHUWKHUDQJHIURP/2'WR/24 D

$GG NQRZQ DPRXQWV RI FDOLEUDWLRQ VWRFN VROXWLRQ WR ZDWHULVRSURSDQRO  LQP/YROXPHWULFIODVNVDQGGLOXWHWRWKHPDUN E $QDO\VHWRJHWKHUZLWKVDPSOHVDQGEODQNVVWHSVDQG  F 3UHSDUHFDOLEUDWLRQJUDSKSHDNDUHDRUKHLJKWYV—JPHWKDQRO 

 'HWHUPLQHGHVRUSWLRQHIILFLHQF\'( DWOHDVWRQFHIRUHDFKORWRIVLOLFDJHO WXEHVXVHGIRUVDPSOLQJLQWKHFDOLEUDWLRQUDQJHVWHS 3UHSDUHWKUHHVDPSOHUV DWHDFKRIVL[OHYHOVSOXVWKUHHPHGLDEODQNV

 'HWHUPLQHGHVRUSWLRQHIILFLHQF\'( DWOHDVWRQFHIRUHDFKORWRIVLOLFDJHO WXEHVXVHGIRUVDPSOLQJLQWKHFDOLEUDWLRQUDQJHVWHS 3UHSDUHWKUHHVDPSOHUV DWHDFKRIVL[OHYHOVSOXVWKUHHPHGLDEODQNV

D 5HPRYHDQGGLVFDUGEDFNVRUEHQWVHFWLRQVRIVDPSOHUVDQGPHGLDEODQNV E ,QMHFW D NQRZQ DPRXQW RI FDOLEUDWLRQ VWRFN VROXWLRQ GLUHFWO\ RQWR WKH IURQWVRUEHQWEHGRIHDFKVLOLFDJHOWXEH

D 5HPRYHDQGGLVFDUGEDFNVRUEHQWVHFWLRQVRIVDPSOHUVDQGPHGLDEODQNV E ,QMHFW D NQRZQ DPRXQW RI FDOLEUDWLRQ VWRFN VROXWLRQ GLUHFWO\ RQWR WKH IURQWVRUEHQWEHGRIHDFKVLOLFDJHOWXEH

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

F $OORZWKHWXEHVWRDLUHTXLOLEUDWHIRUVHYHUDOPLQXWHVWKHQFDSWKHHQGVRI WKHWXEHVDQGDOORZWRVWDQGRYHUQLJKW G 'HVRUEWKHVDPSOHVVWHSVWKURXJK DQGDQDO\]HWRJHWKHUZLWKZRUNLQJ VWDQGDUGVDQGEODQNVVWHSVDQG  H 3UHSDUHDJUDSKRI'(YV—JDQDO\WHUHFRYHUHG

F $OORZWKHWXEHVWRDLUHTXLOLEUDWHIRUVHYHUDOPLQXWHVWKHQFDSWKHHQGVRI WKHWXEHVDQGDOORZWRVWDQGRYHUQLJKW G 'HVRUEWKHVDPSOHVVWHSVWKURXJK DQGDQDO\]HWRJHWKHUZLWKZRUNLQJ VWDQGDUGVDQGEODQNVVWHSVDQG  H 3UHSDUHDJUDSKRI'(YV—JDQDO\WHUHFRYHUHG

 $QDO\]HWKUHHTXDOLW\FRQWUROEOLQGVSLNHVDQGWKUHHDQDO\VWVSLNHVWRHQVXUH WKDWWKHFDOLEUDWLRQJUDSKDQG'(JUDSKVDUHLQFRQWURO

 $QDO\]HWKUHHTXDOLW\FRQWUROEOLQGVSLNHVDQGWKUHHDQDO\VWVSLNHVWRHQVXUH WKDWWKHFDOLEUDWLRQJUDSKDQG'(JUDSKVDUHLQFRQWURO

 0HDVXUHPHQW  6HW JDV FKURPDWRJUDSK DFFRUGLQJ WR PDQXIDFWXUHU¶V UHFRPPHQGDWLRQV DQG WR FRQGLWLRQV JLYHQ RQ SDJH  ,QMHFW D —/ VDPSOH DOLTXRW PDQXDOO\ XVLQJVROYHQWIOXVKWHFKQLTXHRUZLWKDQDXWRVDPSOHU 1RWH,ISHDNDUHDLVDERYHWKHOLQHDUUDQJHRIWKHZRUNLQJVWDQGDUGVGLOXWH ZLWKZDWHU,3$ UHDQDO\]HDQGDSSO\WKHDSSURSULDWHGLOXWLRQIDFWRULQ WKHFDOFXODWLRQV  0HDVXUHSHDNDUHDV

 0HDVXUHPHQW  6HW JDV FKURPDWRJUDSK DFFRUGLQJ WR PDQXIDFWXUHU¶V UHFRPPHQGDWLRQV DQG WR FRQGLWLRQV JLYHQ RQ SDJH  ,QMHFW D —/ VDPSOH DOLTXRW PDQXDOO\ XVLQJVROYHQWIOXVKWHFKQLTXHRUZLWKDQDXWRVDPSOHU 1RWH,ISHDNDUHDLVDERYHWKHOLQHDUUDQJHRIWKHZRUNLQJVWDQGDUGVGLOXWH ZLWKZDWHU,3$ UHDQDO\]HDQGDSSO\WKHDSSURSULDWHGLOXWLRQIDFWRULQ WKHFDOFXODWLRQV  0HDVXUHSHDNDUHDV

 &DOFXODWLRQV  'HWHUPLQHWKHPDVV—JFRUUHFWHGIRU'( IRUPHWKDQROIRXQGLQWKHVDPSOH IURQWDQGEDFN:E VRUEHQWVHFWLRQVDQGLQWKHDYHUDJHPHGLDEODQNIURQW DQG EDFN %E  VRUEHQW VHFWLRQV 1RWH ,I :E ! :I UHSRUW EUHDNWKURXJK DQGSRVVLEOHVDPSOHORVV  &DOFXODWHFRQFHQWUDWLRQ&RUPHWKDQROLQWKHDLUYROXPHVDPSOHG/

 &DOFXODWLRQV  'HWHUPLQHWKHPDVV—JFRUUHFWHGIRU'( IRUPHWKDQROIRXQGLQWKHVDPSOH IURQWDQGEDFN:E VRUEHQWVHFWLRQVDQGLQWKHDYHUDJHPHGLDEODQNIURQW DQG EDFN %E  VRUEHQW VHFWLRQV 1RWH ,I :E ! :I UHSRUW EUHDNWKURXJK DQGSRVVLEOHVDPSOHORVV  &DOFXODWHFRQFHQWUDWLRQ&RUPHWKDQROLQWKHDLUYROXPHVDPSOHG/

&

:I  :E  %I  %E  PJ  P 9

1RWH—J/ PJP

&

:I  :E  %I  %E  PJ  P 9

1RWH—J/ PJP

(YDOXDWLRQRIWKHPHWKRG 7KHPHWKRGZDVUHHYDOXDWHGDQGUHYLVHG,PSURYHPHQWVZHUHPDGHWRHQKDQFH WKHUHFRYHU\RIPHWKDQROIURPVLOLFDJHOWRLPSURYHEDVHOLQHUHVROXWLRQDQGWR LPSURYHWKHSUHFLVLRQRIWKHPHWKRG'HVRUSWLRQHIILFLHQF\'( ZDVGHWHUPLQHG IRUWKUHHOHYHOVXVLQJWKHLPSURYHGDQDO\WLFDOSDUDPHWHUVVWDWHGRQSDJH 7KH DYHUDJH '( IRU PHWKDQRO ZDV GHWHUPLQHG DW  —J   DQG  —J  >@7KH,2'ZDVGHWHUPLQHGWREH—JVDPSOH>@7KHSUHFLVLRQDV GHWHUPLQHGIURPWKHSRROHGUHODWLYHVWDQGDUGGHYLDWLRQ6U ZDVGHWHUPLQHGWREH  >@ 7KHRULJLQDOPHWKRG6>@ZDVLVVXHGRQ-DQXDU\DQGZDVYDOLGDWHG RYHU WKH UDQJH RI  WR  PJP DW ƒ& DG  PP +J ZLWK / VDPSOH YROXPH >@ 7KH HVWLPDWHG /2' GHWHUPLQHG IRU D XVHU FKHFN ZDV  PJVDPSOH>@2YHUDOOSUHFLVLRQ6U7 ZDVGHWHUPLQHGWREHZLWKDQDYHUDJH UHFRYHU IRU  VDPSOHV RI  UHSUHVHQWLQJ QRQVLJQLILFDQW ELDV 7KH

(YDOXDWLRQRIWKHPHWKRG 7KHPHWKRGZDVUHHYDOXDWHGDQGUHYLVHG,PSURYHPHQWVZHUHPDGHWRHQKDQFH WKHUHFRYHU\RIPHWKDQROIURPVLOLFDJHOWRLPSURYHEDVHOLQHUHVROXWLRQDQGWR LPSURYHWKHSUHFLVLRQRIWKHPHWKRG'HVRUSWLRQHIILFLHQF\'( ZDVGHWHUPLQHG IRUWKUHHOHYHOVXVLQJWKHLPSURYHGDQDO\WLFDOSDUDPHWHUVVWDWHGRQSDJH 7KH DYHUDJH '( IRU PHWKDQRO ZDV GHWHUPLQHG DW  —J   DQG  —J  >@7KH,2'ZDVGHWHUPLQHGWREH—JVDPSOH>@7KHSUHFLVLRQDV GHWHUPLQHGIURPWKHSRROHGUHODWLYHVWDQGDUGGHYLDWLRQ6U ZDVGHWHUPLQHGWREH  >@ 7KHRULJLQDOPHWKRG6>@ZDVLVVXHGRQ-DQXDU\DQGZDVYDOLGDWHG RYHU WKH UDQJH RI  WR  PJP DW ƒ& DG  PP +J ZLWK / VDPSOH YROXPH >@ 7KH HVWLPDWHG /2' GHWHUPLQHG IRU D XVHU FKHFN ZDV  PJVDPSOH>@2YHUDOOSUHFLVLRQ6U7 ZDVGHWHUPLQHGWREHZLWKDQDYHUDJH UHFRYHU IRU  VDPSOHV RI  UHSUHVHQWLQJ QRQVLJQLILFDQW ELDV 7KH

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

F $OORZWKHWXEHVWRDLUHTXLOLEUDWHIRUVHYHUDOPLQXWHVWKHQFDSWKHHQGVRI WKHWXEHVDQGDOORZWRVWDQGRYHUQLJKW G 'HVRUEWKHVDPSOHVVWHSVWKURXJK DQGDQDO\]HWRJHWKHUZLWKZRUNLQJ VWDQGDUGVDQGEODQNVVWHSVDQG  H 3UHSDUHDJUDSKRI'(YV—JDQDO\WHUHFRYHUHG

F $OORZWKHWXEHVWRDLUHTXLOLEUDWHIRUVHYHUDOPLQXWHVWKHQFDSWKHHQGVRI WKHWXEHVDQGDOORZWRVWDQGRYHUQLJKW G 'HVRUEWKHVDPSOHVVWHSVWKURXJK DQGDQDO\]HWRJHWKHUZLWKZRUNLQJ VWDQGDUGVDQGEODQNVVWHSVDQG  H 3UHSDUHDJUDSKRI'(YV—JDQDO\WHUHFRYHUHG

 $QDO\]HWKUHHTXDOLW\FRQWUROEOLQGVSLNHVDQGWKUHHDQDO\VWVSLNHVWRHQVXUH WKDWWKHFDOLEUDWLRQJUDSKDQG'(JUDSKVDUHLQFRQWURO

 $QDO\]HWKUHHTXDOLW\FRQWUROEOLQGVSLNHVDQGWKUHHDQDO\VWVSLNHVWRHQVXUH WKDWWKHFDOLEUDWLRQJUDSKDQG'(JUDSKVDUHLQFRQWURO

 0HDVXUHPHQW  6HW JDV FKURPDWRJUDSK DFFRUGLQJ WR PDQXIDFWXUHU¶V UHFRPPHQGDWLRQV DQG WR FRQGLWLRQV JLYHQ RQ SDJH  ,QMHFW D —/ VDPSOH DOLTXRW PDQXDOO\ XVLQJVROYHQWIOXVKWHFKQLTXHRUZLWKDQDXWRVDPSOHU 1RWH,ISHDNDUHDLVDERYHWKHOLQHDUUDQJHRIWKHZRUNLQJVWDQGDUGVGLOXWH ZLWKZDWHU,3$ UHDQDO\]HDQGDSSO\WKHDSSURSULDWHGLOXWLRQIDFWRULQ WKHFDOFXODWLRQV  0HDVXUHSHDNDUHDV

 0HDVXUHPHQW  6HW JDV FKURPDWRJUDSK DFFRUGLQJ WR PDQXIDFWXUHU¶V UHFRPPHQGDWLRQV DQG WR FRQGLWLRQV JLYHQ RQ SDJH  ,QMHFW D —/ VDPSOH DOLTXRW PDQXDOO\ XVLQJVROYHQWIOXVKWHFKQLTXHRUZLWKDQDXWRVDPSOHU 1RWH,ISHDNDUHDLVDERYHWKHOLQHDUUDQJHRIWKHZRUNLQJVWDQGDUGVGLOXWH ZLWKZDWHU,3$ UHDQDO\]HDQGDSSO\WKHDSSURSULDWHGLOXWLRQIDFWRULQ WKHFDOFXODWLRQV  0HDVXUHSHDNDUHDV

 &DOFXODWLRQV  'HWHUPLQHWKHPDVV—JFRUUHFWHGIRU'( IRUPHWKDQROIRXQGLQWKHVDPSOH IURQWDQGEDFN:E VRUEHQWVHFWLRQVDQGLQWKHDYHUDJHPHGLDEODQNIURQW DQG EDFN %E  VRUEHQW VHFWLRQV 1RWH ,I :E ! :I UHSRUW EUHDNWKURXJK DQGSRVVLEOHVDPSOHORVV  &DOFXODWHFRQFHQWUDWLRQ&RUPHWKDQROLQWKHDLUYROXPHVDPSOHG/

 &DOFXODWLRQV  'HWHUPLQHWKHPDVV—JFRUUHFWHGIRU'( IRUPHWKDQROIRXQGLQWKHVDPSOH IURQWDQGEDFN:E VRUEHQWVHFWLRQVDQGLQWKHDYHUDJHPHGLDEODQNIURQW DQG EDFN %E  VRUEHQW VHFWLRQV 1RWH ,I :E ! :I UHSRUW EUHDNWKURXJK DQGSRVVLEOHVDPSOHORVV  &DOFXODWHFRQFHQWUDWLRQ&RUPHWKDQROLQWKHDLUYROXPHVDPSOHG/

&

:I  :E  %I  %E  PJ  P 9

1RWH—J/ PJP (YDOXDWLRQRIWKHPHWKRG 7KHPHWKRGZDVUHHYDOXDWHGDQGUHYLVHG,PSURYHPHQWVZHUHPDGHWRHQKDQFH WKHUHFRYHU\RIPHWKDQROIURPVLOLFDJHOWRLPSURYHEDVHOLQHUHVROXWLRQDQGWR LPSURYHWKHSUHFLVLRQRIWKHPHWKRG'HVRUSWLRQHIILFLHQF\'( ZDVGHWHUPLQHG IRUWKUHHOHYHOVXVLQJWKHLPSURYHGDQDO\WLFDOSDUDPHWHUVVWDWHGRQSDJH 7KH DYHUDJH '( IRU PHWKDQRO ZDV GHWHUPLQHG DW  —J   DQG  —J  >@7KH,2'ZDVGHWHUPLQHGWREH—JVDPSOH>@7KHSUHFLVLRQDV GHWHUPLQHGIURPWKHSRROHGUHODWLYHVWDQGDUGGHYLDWLRQ6U ZDVGHWHUPLQHGWREH  >@ 7KHRULJLQDOPHWKRG6>@ZDVLVVXHGRQ-DQXDU\DQGZDVYDOLGDWHG RYHU WKH UDQJH RI  WR  PJP DW ƒ& DG  PP +J ZLWK / VDPSOH YROXPH >@ 7KH HVWLPDWHG /2' GHWHUPLQHG IRU D XVHU FKHFN ZDV  PJVDPSOH>@2YHUDOOSUHFLVLRQ6U7 ZDVGHWHUPLQHGWREHZLWKDQDYHUDJH UHFRYHU IRU  VDPSOHV RI  UHSUHVHQWLQJ QRQVLJQLILFDQW ELDV 7KH

&

:I  :E  %I  %E  PJ  P 9

1RWH—J/ PJP (YDOXDWLRQRIWKHPHWKRG 7KHPHWKRGZDVUHHYDOXDWHGDQGUHYLVHG,PSURYHPHQWVZHUHPDGHWRHQKDQFH WKHUHFRYHU\RIPHWKDQROIURPVLOLFDJHOWRLPSURYHEDVHOLQHUHVROXWLRQDQGWR LPSURYHWKHSUHFLVLRQRIWKHPHWKRG'HVRUSWLRQHIILFLHQF\'( ZDVGHWHUPLQHG IRUWKUHHOHYHOVXVLQJWKHLPSURYHGDQDO\WLFDOSDUDPHWHUVVWDWHGRQSDJH 7KH DYHUDJH '( IRU PHWKDQRO ZDV GHWHUPLQHG DW  —J   DQG  —J  >@7KH,2'ZDVGHWHUPLQHGWREH—JVDPSOH>@7KHSUHFLVLRQDV GHWHUPLQHGIURPWKHSRROHGUHODWLYHVWDQGDUGGHYLDWLRQ6U ZDVGHWHUPLQHGWREH  >@ 7KHRULJLQDOPHWKRG6>@ZDVLVVXHGRQ-DQXDU\DQGZDVYDOLGDWHG RYHU WKH UDQJH RI  WR  PJP DW ƒ& DG  PP +J ZLWK / VDPSOH YROXPH >@ 7KH HVWLPDWHG /2' GHWHUPLQHG IRU D XVHU FKHFN ZDV  PJVDPSOH>@2YHUDOOSUHFLVLRQ6U7 ZDVGHWHUPLQHGWREHZLWKDQDYHUDJH UHFRYHU IRU  VDPSOHV RI  UHSUHVHQWLQJ QRQVLJQLILFDQW ELDV 7KH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

DWPRVSKHUHV ZHUH JHQHUDWHG E\ FDOLEUDWHG V\ULQJH SXPS 'HVRUSWLRQ HIILFLHQF\ '( ZDVGHWHUPLQHGWREHDWPJPHWKDQRODQGDWPJPHWKDQRO SHU VDPSOH 7KH EUHDNWKURXJK YROXPH ZDV  /  RQ EDFN VHFWLRQ  ZKHQ VDPSOLQJDPHWKDQRODWPRVSKHUHFRQWDLQLQJPJPLQGU\DLUDW/PLQIRU PLQ 'DWD JDWKHUHG XVLQJ ODUJHU VLOLFD JHO WXEHV  PJ IURQW VHFWLRQ  XQGHU FRQGLWLRQV RI KLJK KXPLGLW\ ZHUH SXEOLVKHG LQ 3 &$0  >@ 7KH GDWD DUH FRQVLVWHQWZLWKDUHFRPPHQGHGPD[LPXPVDPSOHYROXPHRI/

DWPRVSKHUHV ZHUH JHQHUDWHG E\ FDOLEUDWHG V\ULQJH SXPS 'HVRUSWLRQ HIILFLHQF\ '( ZDVGHWHUPLQHGWREHDWPJPHWKDQRODQGDWPJPHWKDQRO SHU VDPSOH 7KH EUHDNWKURXJK YROXPH ZDV  /  RQ EDFN VHFWLRQ  ZKHQ VDPSOLQJDPHWKDQRODWPRVSKHUHFRQWDLQLQJPJPLQGU\DLUDW/PLQIRU PLQ 'DWD JDWKHUHG XVLQJ ODUJHU VLOLFD JHO WXEHV  PJ IURQW VHFWLRQ  XQGHU FRQGLWLRQV RI KLJK KXPLGLW\ ZHUH SXEOLVKHG LQ 3 &$0  >@ 7KH GDWD DUH FRQVLVWHQWZLWKDUHFRPPHQGHGPD[LPXPVDPSOHYROXPHRI/

5()(5(1&(6

5()(5(1&(6

 3HQGHUJUDVV60%DFNXSGDWDUHSRUWIRUPHWKDQROPHWKRGGHYHORSPHQW&LQFLQQDWL2+ 1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQ6DIHW\DQG+HDOWK'36(1,26+8QSXEOLVKHG0D\    1,26+'RFXPHQWDWLRQRIWKH1,26+YDOLGDWLRQWHVWV&LQFLQQDWL2+1DWLRQDO,QVWLWXWH IRU2FFXSDWLRQ6DIHW\DQG+HDOWK'+(:1,26+ 3XEOLFDWLRQ1R±   1,26+1,26+0DQXDORI$QDO\WLFDO0HWKRGV10$0 96&LQFLQQDWL2+ 1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQ6DIHW\DQG+HDOWK'+(:1,26+ 3XEOLFDWLRQ1R ±%   1,26+0DQXDORI$QDO\WLFDO0HWKRGV10$0 963 &$0&LQFLQQDWL 2+1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQ6DIHW\DQG+HDOWK'+(:1,26+ 3XEOLFDWLRQ 1R±$   1,26+8VHU&KHFN8%7/1,26+6HTXHQFH.8QSXQLVKHG1RYHPEHU BBBBBBBBBBBBBBBBB

 3HQGHUJUDVV60%DFNXSGDWDUHSRUWIRUPHWKDQROPHWKRGGHYHORSPHQW&LQFLQQDWL2+ 1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQ6DIHW\DQG+HDOWK'36(1,26+8QSXEOLVKHG0D\    1,26+'RFXPHQWDWLRQRIWKH1,26+YDOLGDWLRQWHVWV&LQFLQQDWL2+1DWLRQDO,QVWLWXWH IRU2FFXSDWLRQ6DIHW\DQG+HDOWK'+(:1,26+ 3XEOLFDWLRQ1R±   1,26+1,26+0DQXDORI$QDO\WLFDO0HWKRGV10$0 96&LQFLQQDWL2+ 1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQ6DIHW\DQG+HDOWK'+(:1,26+ 3XEOLFDWLRQ1R ±%   1,26+0DQXDORI$QDO\WLFDO0HWKRGV10$0 963 &$0&LQFLQQDWL 2+1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQ6DIHW\DQG+HDOWK'+(:1,26+ 3XEOLFDWLRQ 1R±$   1,26+8VHU&KHFN8%7/1,26+6HTXHQFH.8QSXQLVKHG1RYHPEHU BBBBBBBBBBBBBBBBB

0HWKRG5HYLVHGE\ 6WHSKDQLH03HQGHUJUDVV1,26+'36(

0HWKRG5HYLVHGE\ 6WHSKDQLH03HQGHUJUDVV1,26+'36(

 $520$7,& +@ 7KH GDWD DUH FRQVLVWHQWZLWKDUHFRPPHQGHGPD[LPXPVDPSOHYROXPHRI/

5()(5(1&(6

5()(5(1&(6

 3HQGHUJUDVV60%DFNXSGDWDUHSRUWIRUPHWKDQROPHWKRGGHYHORSPHQW&LQFLQQDWL2+ 1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQ6DIHW\DQG+HDOWK'36(1,26+8QSXEOLVKHG0D\    1,26+'RFXPHQWDWLRQRIWKH1,26+YDOLGDWLRQWHVWV&LQFLQQDWL2+1DWLRQDO,QVWLWXWH IRU2FFXSDWLRQ6DIHW\DQG+HDOWK'+(:1,26+ 3XEOLFDWLRQ1R±   1,26+1,26+0DQXDORI$QDO\WLFDO0HWKRGV10$0 96&LQFLQQDWL2+ 1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQ6DIHW\DQG+HDOWK'+(:1,26+ 3XEOLFDWLRQ1R ±%   1,26+0DQXDORI$QDO\WLFDO0HWKRGV10$0 963 &$0&LQFLQQDWL 2+1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQ6DIHW\DQG+HDOWK'+(:1,26+ 3XEOLFDWLRQ 1R±$   1,26+8VHU&KHFN8%7/1,26+6HTXHQFH.8QSXQLVKHG1RYHPEHU BBBBBBBBBBBBBBBBB

 3HQGHUJUDVV60%DFNXSGDWDUHSRUWIRUPHWKDQROPHWKRGGHYHORSPHQW&LQFLQQDWL2+ 1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQ6DIHW\DQG+HDOWK'36(1,26+8QSXEOLVKHG0D\    1,26+'RFXPHQWDWLRQRIWKH1,26+YDOLGDWLRQWHVWV&LQFLQQDWL2+1DWLRQDO,QVWLWXWH IRU2FFXSDWLRQ6DIHW\DQG+HDOWK'+(:1,26+ 3XEOLFDWLRQ1R±   1,26+1,26+0DQXDORI$QDO\WLFDO0HWKRGV10$0 96&LQFLQQDWL2+ 1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQ6DIHW\DQG+HDOWK'+(:1,26+ 3XEOLFDWLRQ1R ±%   1,26+0DQXDORI$QDO\WLFDO0HWKRGV10$0 963 &$0&LQFLQQDWL 2+1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQ6DIHW\DQG+HDOWK'+(:1,26+ 3XEOLFDWLRQ 1R±$   1,26+8VHU&KHFN8%7/1,26+6HTXHQFH.8QSXQLVKHG1RYHPEHU BBBBBBBBBBBBBBBBB

0HWKRG5HYLVHGE\ 6WHSKDQLH03HQGHUJUDVV1,26+'36(

0HWKRG5HYLVHGE\ 6WHSKDQLH03HQGHUJUDVV1,26+'36(

 $520$7,& +@  >@ “

 0HDVXUHPHQW

 0HDVXUHPHQW

7HFKQLTXH $QDO\WH ([WUDFWLRQ ,QMHFWLRQ 9ROXPH 0RELOH 3KDVH &ROXPQ

7HFKQLTXH $QDO\WH ([WUDFWLRQ ,QMHFWLRQ 9ROXPH 0RELOH 3KDVH &ROXPQ

'HWHFWRU &DOLEUDWLRQ 5DQJH (VWLPDWHG/2' 3UHFLVLRQ 6U 

3+/&89GHWHFWLRQ GHQLWURSKHQ\OK\GUR]RQHRIIRUPDOGHK\GH (OXWLRQZLWKP/RIFDUERQ\OIUHHDFHWRQLWULOH —/ DFHWRQLWULOHZDWHUYY P/PLQ îPPVWDLQOHVVVWHHOSDFNHGZLWK—P& 6\PPHWU\70RUHTXLYDOHQW 89#QP 6DPSOHUVIRUWLILHGZLWKVWDQGDUGVROXWLRQVRIIRUPDOGHK\GHLQZDWHU WR—JSHUVDPSOH>@ —JVDPSOH>@ #WR—JVDPSOH>@

'HWHFWRU &DOLEUDWLRQ 5DQJH (VWLPDWHG/2' 3UHFLVLRQ 6U 

3+/&89GHWHFWLRQ GHQLWURSKHQ\OK\GUR]RQHRIIRUPDOGHK\GH (OXWLRQZLWKP/RIFDUERQ\OIUHHDFHWRQLWULOH —/ DFHWRQLWULOHZDWHUYY P/PLQ îPPVWDLQOHVVVWHHOSDFNHGZLWK—P& 6\PPHWU\70RUHTXLYDOHQW 89#QP 6DPSOHUVIRUWLILHGZLWKVWDQGDUGVROXWLRQVRIIRUPDOGHK\GHLQZDWHU WR—JSHUVDPSOH>@ —JVDPSOH>@ #WR—JVDPSOH>@

 $SSOLFDELOLW\

 $SSOLFDELOLW\

7KHZRUNLQJUDQJHLVWRPJPWRSSP IRUD/VDPSOH 7KLVPHWKRGFDQEHXVHGIRUWKHGHWHUPLQDWLRQRIIRUPDOGHK\GHIRUERWK67(/ DQG7:$H[SRVXUHV>@

7KHZRUNLQJUDQJHLVWRPJPWRSSP IRUD/VDPSOH 7KLVPHWKRGFDQEHXVHGIRUWKHGHWHUPLQDWLRQRIIRUPDOGHK\GHIRUERWK67(/ DQG7:$H[SRVXUHV>@

 ,QWHUIHUHQFHV

 ,QWHUIHUHQFHV

2]RQHKDVEHHQREVHUYHGWRFRQVXPHWKHGLQLWURSKHQ\OK\GUD]LQH'13+ UHDJHQWDQGWRGHJUDGHWKHIRUPDOGHK\GHGHULYDWLYH>@.HWRQHVDQGRWKHUDOGHKG\HV FDQ UHDFW ZLWK  '13+ WKH GHULYDWLYHV SURGXFHG KRZHYHU DUH VHSDUDWHG FKURPDWRJUDSKLFDOO\IURPWKHIRUPDOGHK\GHGHULYDWLYH

2]RQHKDVEHHQREVHUYHGWRFRQVXPHWKHGLQLWURSKHQ\OK\GUD]LQH'13+ UHDJHQWDQGWRGHJUDGHWKHIRUPDOGHK\GHGHULYDWLYH>@.HWRQHVDQGRWKHUDOGHKG\HV FDQ UHDFW ZLWK  '13+ WKH GHULYDWLYHV SURGXFHG KRZHYHU DUH VHSDUDWHG FKURPDWRJUDSKLFDOO\IURPWKHIRUPDOGHK\GHGHULYDWLYH

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

 6DPSOLQJ 6DPSOHU )ORZ5DWH 9RO PLQ PD[ 6KLSPHQW 6DPSOH 6WDELOLW\ %ODQNV

 6DPSOLQJ &DUWULGJH &DUWULGJHFRQWDLQLQJVLOLFDJHOFRDWHGZLWKGLQLWURSKHQ\OK\GUD]LQH WR/PLQ /#PJP /#PJP 3ODFHFDSVRQWRFDUWULGJH6KLSRQLFH GD\V#ƒ&>@ WRILHOGEODQNVSHUVHW WRPHGLDEODQNVSHUVHW

 $FFXUDF\

6DPSOHU )ORZ5DWH 9RO PLQ PD[ 6KLSPHQW 6DPSOH 6WDELOLW\ %ODQNV

&DUWULGJH &DUWULGJHFRQWDLQLQJVLOLFDJHOFRDWHGZLWKGLQLWURSKHQ\OK\GUD]LQH WR/PLQ /#PJP /#PJP 3ODFHFDSVRQWRFDUWULGJH6KLSRQLFH GD\V#ƒ&>@ WRILHOGEODQNVSHUVHW WRPHGLDEODQNVSHUVHW

 $FFXUDF\

5DQJH6WXGLHG %LDV 2YHUDOO 3UHFLVLRQ 6U7  $FFXUDF\

WRPJP/VDPSOHV>@  >@ “

5DQJH6WXGLHG %LDV 2YHUDOO 3UHFLVLRQ 6U7  $FFXUDF\

WRPJP/VDPSOHV>@  >@ “

 0HDVXUHPHQW

 0HDVXUHPHQW

7HFKQLTXH $QDO\WH ([WUDFWLRQ ,QMHFWLRQ 9ROXPH 0RELOH 3KDVH &ROXPQ

7HFKQLTXH $QDO\WH ([WUDFWLRQ ,QMHFWLRQ 9ROXPH 0RELOH 3KDVH &ROXPQ

'HWHFWRU &DOLEUDWLRQ 5DQJH (VWLPDWHG/2' 3UHFLVLRQ 6U 

3+/&89GHWHFWLRQ GHQLWURSKHQ\OK\GUR]RQHRIIRUPDOGHK\GH (OXWLRQZLWKP/RIFDUERQ\OIUHHDFHWRQLWULOH —/ DFHWRQLWULOHZDWHUYY P/PLQ îPPVWDLQOHVVVWHHOSDFNHGZLWK—P& 6\PPHWU\70RUHTXLYDOHQW 89#QP 6DPSOHUVIRUWLILHGZLWKVWDQGDUGVROXWLRQVRIIRUPDOGHK\GHLQZDWHU WR—JSHUVDPSOH>@ —JVDPSOH>@ #WR—JVDPSOH>@

'HWHFWRU &DOLEUDWLRQ 5DQJH (VWLPDWHG/2' 3UHFLVLRQ 6U 

3+/&89GHWHFWLRQ GHQLWURSKHQ\OK\GUR]RQHRIIRUPDOGHK\GH (OXWLRQZLWKP/RIFDUERQ\OIUHHDFHWRQLWULOH —/ DFHWRQLWULOHZDWHUYY P/PLQ îPPVWDLQOHVVVWHHOSDFNHGZLWK—P& 6\PPHWU\70RUHTXLYDOHQW 89#QP 6DPSOHUVIRUWLILHGZLWKVWDQGDUGVROXWLRQVRIIRUPDOGHK\GHLQZDWHU WR—JSHUVDPSOH>@ —JVDPSOH>@ #WR—JVDPSOH>@

 $SSOLFDELOLW\

 $SSOLFDELOLW\

7KHZRUNLQJUDQJHLVWRPJPWRSSP IRUD/VDPSOH 7KLVPHWKRGFDQEHXVHGIRUWKHGHWHUPLQDWLRQRIIRUPDOGHK\GHIRUERWK67(/ DQG7:$H[SRVXUHV>@

7KHZRUNLQJUDQJHLVWRPJPWRSSP IRUD/VDPSOH 7KLVPHWKRGFDQEHXVHGIRUWKHGHWHUPLQDWLRQRIIRUPDOGHK\GHIRUERWK67(/ DQG7:$H[SRVXUHV>@

 ,QWHUIHUHQFHV

 ,QWHUIHUHQFHV

2]RQHKDVEHHQREVHUYHGWRFRQVXPHWKHGLQLWURSKHQ\OK\GUD]LQH'13+ UHDJHQWDQGWRGHJUDGHWKHIRUPDOGHK\GHGHULYDWLYH>@.HWRQHVDQGRWKHUDOGHKG\HV FDQ UHDFW ZLWK  '13+ WKH GHULYDWLYHV SURGXFHG KRZHYHU DUH VHSDUDWHG FKURPDWRJUDSKLFDOO\IURPWKHIRUPDOGHK\GHGHULYDWLYH

2]RQHKDVEHHQREVHUYHGWRFRQVXPHWKHGLQLWURSKHQ\OK\GUD]LQH'13+ UHDJHQWDQGWRGHJUDGHWKHIRUPDOGHK\GHGHULYDWLYH>@.HWRQHVDQGRWKHUDOGHKG\HV FDQ UHDFW ZLWK  '13+ WKH GHULYDWLYHV SURGXFHG KRZHYHU DUH VHSDUDWHG FKURPDWRJUDSKLFDOO\IURPWKHIRUPDOGHK\GHGHULYDWLYH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 2WKHU 0HWKRGV

 2WKHU 0HWKRGV

1,26+PHWKRGV>@DQG>@DQG26+$PHWKRG>@DUHRWKHUPHWKRGV IRU GHWHUPLQDWLRQ RI IRUPDOGHK\GH LQ DLU 1,26+ PHWKRG  HPSOR\V   '13+DQG+3/&IRUGHWHUPLQDWLRQRIIRUPDOGHK\GHRQWH[WLOHRUZRRGGXVW>@ $MRXUQDOPHWKRGHPSOR\VWKHVDPHSURFHGXUHIRUIRUPDOGHK\GHLQDXWRPRELOH H[KDXVW >@

1,26+PHWKRGV>@DQG>@DQG26+$PHWKRG>@DUHRWKHUPHWKRGV IRU GHWHUPLQDWLRQ RI IRUPDOGHK\GH LQ DLU 1,26+ PHWKRG  HPSOR\V   '13+DQG+3/&IRUGHWHUPLQDWLRQRIIRUPDOGHK\GHRQWH[WLOHRUZRRGGXVW>@ $MRXUQDOPHWKRGHPSOR\VWKHVDPHSURFHGXUHIRUIRUPDOGHK\GHLQDXWRPRELOH H[KDXVW >@

 5HDJHQWV

 5HDJHQWV

 )RUPDOGHK\GHVWRFNVROXWLRQ DTXHRXVVWDQGDUGL]HGPJP/VHH$SSHQGL[ $ $OWHUQDWLYHO\VWDQGDUGL]HGIRUPDOGHK\GHVROXWLRQDTXHRXVPJP/LV DYDLODEOHFRPPHUFLDOO\IURP+DFK&R/RYHODQG&R  $FHWRQLWULOH GLVWLOOHGLQJODVVORZFDUERQ\OFRQWHQW

 :DWHUGHLRQL]HGDQGGLVWLOOHG  6XOSKXULFDFLG1S+VWDQGDUGL]DWLRQSURFHGXUH RU1FDORULPHWULF SURFHGXUH   6RGLXPK\GUR[LGH1  6RGLXP VXOSKLWH 1D62   0 S+ SURFHGXUH  RU  0 FDORULPHWULF SURFHGXUH 3UHSDUHIUHVKLPPHGLDWHO\EHIRUHXVH  7K\PRSKWKDOHLQLQGLFDWRUVROXWLRQZY LQHWKDQROZDWHU

 )RUPDOGHK\GHVWRFNVROXWLRQ DTXHRXVVWDQGDUGL]HGPJP/VHH$SSHQGL[ $ $OWHUQDWLYHO\VWDQGDUGL]HGIRUPDOGHK\GHVROXWLRQDTXHRXVPJP/LV DYDLODEOHFRPPHUFLDOO\IURP+DFK&R/RYHODQG&R  $FHWRQLWULOH GLVWLOOHGLQJODVVORZFDUERQ\OFRQWHQW

 :DWHUGHLRQL]HGDQGGLVWLOOHG  6XOSKXULFDFLG1S+VWDQGDUGL]DWLRQSURFHGXUH RU1FDORULPHWULF SURFHGXUH   6RGLXPK\GUR[LGH1  6RGLXP VXOSKLWH 1D62   0 S+ SURFHGXUH  RU  0 FDORULPHWULF SURFHGXUH 3UHSDUHIUHVKLPPHGLDWHO\EHIRUHXVH  7K\PRSKWKDOHLQLQGLFDWRUVROXWLRQZY LQHWKDQROZDWHU

6HHVSHFLDOSUHFDXWLRQV

6HHVSHFLDOSUHFDXWLRQV

&DUERQ\OFRQWHQWRIDFHWRQLWULOHFDQEHGHWHUPLQHGE\SDVVLQJP/RIWKH VROYHQWWKURXJKDFDUWULGJHRI'13+FRDWHGVLOLFDJHODQGDQDO\]LQJE\+3/& )RUPDOGHK\GHFRQWHQWVKRXOGEHEHORZWKH/2'

&DUERQ\OFRQWHQWRIDFHWRQLWULOHFDQEHGHWHUPLQHGE\SDVVLQJP/RIWKH VROYHQWWKURXJKDFDUWULGJHRI'13+FRDWHGVLOLFDJHODQGDQDO\]LQJE\+3/& )RUPDOGHK\GHFRQWHQWVKRXOGEHEHORZWKH/2'

 (TXLSPHQW

 (TXLSPHQW

 6DPSOHU 3ODVWLF KROGHU FRQWDLQLQJ  J RI  ± —P  ± PHVK VLOLFDJHOFRDWHGZLWKPJRIDFLGLILHGGLQLWURSKHQ\OK\GUD]LQH3UHVVXUH GURS DFURVV VDPSOHU VKRXOG EH OHVV WKDQ  LQFKHV RI ZDWHU  N3D DW  /PLQ 6DPSOHUV DUH FRPPHUFLDOO\ DYDLODEOH >6XSHOFR 6 /S'13+ FDUWULGJHFDW1R:DWHUV&RUS6HS3DN;3R6XUH$OGHK\GH6DPSOHU 3DUW1R:$72VHH$SSHQGL[%IRU6.FVDPSOHU@  3HUVRQDOVDPSOLQJSXPSWR/PLQZLWKIOH[LEOHFRQQHFWLQJWXELQJ  9LDOVP/JODVVZLWK37)(OLQHGUXEEHUVHSWDFDSV  9LDOVP/JODVV 1RWH'RQRWXVHYLDOVZLWK³SRO\FRQH´OLQHUV6RXUFHVRIKLJKIRUPDOGHKG\H EODQNV >@  /LTXLGFKURPDWRJUDSKZLWK89GHWHFWRUUHFRUGHULQWHJUDWRUDQGFROXPQSDJH  

 6DPSOHU 3ODVWLF KROGHU FRQWDLQLQJ  J RI  ± —P  ± PHVK VLOLFDJHOFRDWHGZLWKPJRIDFLGLILHGGLQLWURSKHQ\OK\GUD]LQH3UHVVXUH GURS DFURVV VDPSOHU VKRXOG EH OHVV WKDQ  LQFKHV RI ZDWHU  N3D DW  /PLQ 6DPSOHUV DUH FRPPHUFLDOO\ DYDLODEOH >6XSHOFR 6 /S'13+ FDUWULGJHFDW1R:DWHUV&RUS6HS3DN;3R6XUH$OGHK\GH6DPSOHU 3DUW1R:$72VHH$SSHQGL[%IRU6.FVDPSOHU@  3HUVRQDOVDPSOLQJSXPSWR/PLQZLWKIOH[LEOHFRQQHFWLQJWXELQJ  9LDOVP/JODVVZLWK37)(OLQHGUXEEHUVHSWDFDSV  9LDOVP/JODVV 1RWH'RQRWXVHYLDOVZLWK³SRO\FRQH´OLQHUV6RXUFHVRIKLJKIRUPDOGHKG\H EODQNV >@  /LTXLGFKURPDWRJUDSKZLWK89GHWHFWRUUHFRUGHULQWHJUDWRUDQGFROXPQSDJH  

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 2WKHU 0HWKRGV

 2WKHU 0HWKRGV

1,26+PHWKRGV>@DQG>@DQG26+$PHWKRG>@DUHRWKHUPHWKRGV IRU GHWHUPLQDWLRQ RI IRUPDOGHK\GH LQ DLU 1,26+ PHWKRG  HPSOR\V   '13+DQG+3/&IRUGHWHUPLQDWLRQRIIRUPDOGHK\GHRQWH[WLOHRUZRRGGXVW>@ $MRXUQDOPHWKRGHPSOR\VWKHVDPHSURFHGXUHIRUIRUPDOGHK\GHLQDXWRPRELOH H[KDXVW >@

1,26+PHWKRGV>@DQG>@DQG26+$PHWKRG>@DUHRWKHUPHWKRGV IRU GHWHUPLQDWLRQ RI IRUPDOGHK\GH LQ DLU 1,26+ PHWKRG  HPSOR\V   '13+DQG+3/&IRUGHWHUPLQDWLRQRIIRUPDOGHK\GHRQWH[WLOHRUZRRGGXVW>@ $MRXUQDOPHWKRGHPSOR\VWKHVDPHSURFHGXUHIRUIRUPDOGHK\GHLQDXWRPRELOH H[KDXVW >@

 5HDJHQWV

 5HDJHQWV

 )RUPDOGHK\GHVWRFNVROXWLRQ DTXHRXVVWDQGDUGL]HGPJP/VHH$SSHQGL[ $ $OWHUQDWLYHO\VWDQGDUGL]HGIRUPDOGHK\GHVROXWLRQDTXHRXVPJP/LV DYDLODEOHFRPPHUFLDOO\IURP+DFK&R/RYHODQG&R  $FHWRQLWULOH GLVWLOOHGLQJODVVORZFDUERQ\OFRQWHQW

 :DWHUGHLRQL]HGDQGGLVWLOOHG  6XOSKXULFDFLG1S+VWDQGDUGL]DWLRQSURFHGXUH RU1FDORULPHWULF SURFHGXUH   6RGLXPK\GUR[LGH1  6RGLXP VXOSKLWH 1D62   0 S+ SURFHGXUH  RU  0 FDORULPHWULF SURFHGXUH 3UHSDUHIUHVKLPPHGLDWHO\EHIRUHXVH  7K\PRSKWKDOHLQLQGLFDWRUVROXWLRQZY LQHWKDQROZDWHU

 )RUPDOGHK\GHVWRFNVROXWLRQ DTXHRXVVWDQGDUGL]HGPJP/VHH$SSHQGL[ $ $OWHUQDWLYHO\VWDQGDUGL]HGIRUPDOGHK\GHVROXWLRQDTXHRXVPJP/LV DYDLODEOHFRPPHUFLDOO\IURP+DFK&R/RYHODQG&R  $FHWRQLWULOH GLVWLOOHGLQJODVVORZFDUERQ\OFRQWHQW

 :DWHUGHLRQL]HGDQGGLVWLOOHG  6XOSKXULFDFLG1S+VWDQGDUGL]DWLRQSURFHGXUH RU1FDORULPHWULF SURFHGXUH   6RGLXPK\GUR[LGH1  6RGLXP VXOSKLWH 1D62   0 S+ SURFHGXUH  RU  0 FDORULPHWULF SURFHGXUH 3UHSDUHIUHVKLPPHGLDWHO\EHIRUHXVH  7K\PRSKWKDOHLQLQGLFDWRUVROXWLRQZY LQHWKDQROZDWHU

6HHVSHFLDOSUHFDXWLRQV

6HHVSHFLDOSUHFDXWLRQV

&DUERQ\OFRQWHQWRIDFHWRQLWULOHFDQEHGHWHUPLQHGE\SDVVLQJP/RIWKH VROYHQWWKURXJKDFDUWULGJHRI'13+FRDWHGVLOLFDJHODQGDQDO\]LQJE\+3/& )RUPDOGHK\GHFRQWHQWVKRXOGEHEHORZWKH/2'

&DUERQ\OFRQWHQWRIDFHWRQLWULOHFDQEHGHWHUPLQHGE\SDVVLQJP/RIWKH VROYHQWWKURXJKDFDUWULGJHRI'13+FRDWHGVLOLFDJHODQGDQDO\]LQJE\+3/& )RUPDOGHK\GHFRQWHQWVKRXOGEHEHORZWKH/2'

 (TXLSPHQW

 (TXLSPHQW

 6DPSOHU 3ODVWLF KROGHU FRQWDLQLQJ  J RI  ± —P  ± PHVK VLOLFDJHOFRDWHGZLWKPJRIDFLGLILHGGLQLWURSKHQ\OK\GUD]LQH3UHVVXUH GURS DFURVV VDPSOHU VKRXOG EH OHVV WKDQ  LQFKHV RI ZDWHU  N3D DW  /PLQ 6DPSOHUV DUH FRPPHUFLDOO\ DYDLODEOH >6XSHOFR 6 /S'13+ FDUWULGJHFDW1R:DWHUV&RUS6HS3DN;3R6XUH$OGHK\GH6DPSOHU 3DUW1R:$72VHH$SSHQGL[%IRU6.FVDPSOHU@  3HUVRQDOVDPSOLQJSXPSWR/PLQZLWKIOH[LEOHFRQQHFWLQJWXELQJ  9LDOVP/JODVVZLWK37)(OLQHGUXEEHUVHSWDFDSV  9LDOVP/JODVV 1RWH'RQRWXVHYLDOVZLWK³SRO\FRQH´OLQHUV6RXUFHVRIKLJKIRUPDOGHKG\H EODQNV >@  /LTXLGFKURPDWRJUDSKZLWK89GHWHFWRUUHFRUGHULQWHJUDWRUDQGFROXPQSDJH  

 6DPSOHU 3ODVWLF KROGHU FRQWDLQLQJ  J RI  ± —P  ± PHVK VLOLFDJHOFRDWHGZLWKPJRIDFLGLILHGGLQLWURSKHQ\OK\GUD]LQH3UHVVXUH GURS DFURVV VDPSOHU VKRXOG EH OHVV WKDQ  LQFKHV RI ZDWHU  N3D DW  /PLQ 6DPSOHUV DUH FRPPHUFLDOO\ DYDLODEOH >6XSHOFR 6 /S'13+ FDUWULGJHFDW1R:DWHUV&RUS6HS3DN;3R6XUH$OGHK\GH6DPSOHU 3DUW1R:$72VHH$SSHQGL[%IRU6.FVDPSOHU@  3HUVRQDOVDPSOLQJSXPSWR/PLQZLWKIOH[LEOHFRQQHFWLQJWXELQJ  9LDOVP/JODVVZLWK37)(OLQHGUXEEHUVHSWDFDSV  9LDOVP/JODVV 1RWH'RQRWXVHYLDOVZLWK³SRO\FRQH´OLQHUV6RXUFHVRIKLJKIRUPDOGHKG\H EODQNV >@  /LTXLGFKURPDWRJUDSKZLWK89GHWHFWRUUHFRUGHULQWHJUDWRUDQGFROXPQSDJH  

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV          

6\ULQJHV—/DQGP/ 9ROXPHWULFIODVNVP/P/DQG/ %XUHWWHVP/ S+PHWHU 0DJQHWLFVWLUUHU %HDNHUP/ )ODVN(UOHQPH\HUP/ 2]RQHVFUXEEHU:DWHUV&RUS RSWLRQDO  $OXPLQLXPIRLORUEODFNHOHFWULFDOWDSHRSWLRQDO 

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV          

6\ULQJHV—/DQGP/ 9ROXPHWULFIODVNVP/P/DQG/ %XUHWWHVP/ S+PHWHU 0DJQHWLFVWLUUHU %HDNHUP/ )ODVN(UOHQPH\HUP/ 2]RQHVFUXEEHU:DWHUV&RUS RSWLRQDO  $OXPLQLXPIRLORUEODFNHOHFWULFDOWDSHRSWLRQDO 

6SHFLDO3UHFDXWLRQV)RUPDOGHKG\HLVDVXVSHFWFDUFLQRJHQDQGDSURYHQKXPDQ VHQVLWL]HULWVKRXOGEHKDQGOHGLQDIXPHKRRG> ±@ $FHWRQLWULOHLVWR[LFDQGLVDILUHKD]DUGIODVKSRLQW ƒ& 

6SHFLDO3UHFDXWLRQV)RUPDOGHKG\HLVDVXVSHFWFDUFLQRJHQDQGDSURYHQKXPDQ VHQVLWL]HULWVKRXOGEHKDQGOHGLQDIXPHKRRG> ±@ $FHWRQLWULOHLVWR[LFDQGLVDILUHKD]DUGIODVKSRLQW ƒ& 

 6DPSOLQJ

 6DPSOLQJ

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ƒ& 

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ƒ& 

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

6DPSOHSUHSDUDWLRQ 1RWH&KHFNDFHWRQLWULOHIRUIRUPDOGHK\GHFRQWHQWE\HOXWLRQDQGDQDO\VLVRID EODQNFDUWULGJH7KHIRUPDOGHK\GHOHYHOVKRXOGEHEHORZWKHGHWHFWLRQOLPLW6LQFH EDFNJURXQGOHYHOVRIIRUPDOGHK\GHRQWKHVDPSOHUVPD\FKDQJHGXULQJVWRUDJH FRPSDUH VDPSOHV ZLWK VDPSOHU EODQNV IURP WKH VDPH ORW 6DPSOHV DQG EODQNV VKRXOGEHVWRUHGXQGHUWKHVDPHFRQGLWLRQV  (OXWHWKHIRUPDOGHK\GHGHULYDWLYHIURPWKHFDUWULGJHVDPSOHUVZLWKP/ TXDQWLWLHVRIDFHWRQLWULOH D &ROOHFWHIIOXHQWIURPHDFKVDPSOHULQDP/YROXPHWULFIODVN E $GGDFHWRQLWULOHWRWKHPDUNIRUHDFKVDPSOHU

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

        

6\ULQJHV—/DQGP/ 9ROXPHWULFIODVNVP/P/DQG/ %XUHWWHVP/ S+PHWHU 0DJQHWLFVWLUUHU %HDNHUP/ )ODVN(UOHQPH\HUP/ 2]RQHVFUXEEHU:DWHUV&RUS RSWLRQDO  $OXPLQLXPIRLORUEODFNHOHFWULFDOWDSHRSWLRQDO 

        

6\ULQJHV—/DQGP/ 9ROXPHWULFIODVNVP/P/DQG/ %XUHWWHVP/ S+PHWHU 0DJQHWLFVWLUUHU %HDNHUP/ )ODVN(UOHQPH\HUP/ 2]RQHVFUXEEHU:DWHUV&RUS RSWLRQDO  $OXPLQLXPIRLORUEODFNHOHFWULFDOWDSHRSWLRQDO 

6SHFLDO3UHFDXWLRQV)RUPDOGHKG\HLVDVXVSHFWFDUFLQRJHQDQGDSURYHQKXPDQ VHQVLWL]HULWVKRXOGEHKDQGOHGLQDIXPHKRRG> ±@ $FHWRQLWULOHLVWR[LFDQGLVDILUHKD]DUGIODVKSRLQW ƒ& 

6SHFLDO3UHFDXWLRQV)RUPDOGHKG\HLVDVXVSHFWFDUFLQRJHQDQGDSURYHQKXPDQ VHQVLWL]HULWVKRXOGEHKDQGOHGLQDIXPHKRRG> ±@ $FHWRQLWULOHLVWR[LFDQGLVDILUHKD]DUGIODVKSRLQW ƒ& 

 6DPSOLQJ

 6DPSOLQJ

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ƒ& 

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ƒ& 

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

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV 1RWH7KHVLOLFDJHOEHGRIWKHVDPSOHUZLOOUHWDLQDSSUR[LPDWHO\P/RIWKH RULJLQDOP/

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV 1RWH7KHVLOLFDJHOEHGRIWKHVDPSOHUZLOOUHWDLQDSSUR[LPDWHO\P/RIWKH RULJLQDOP/

&DOLEUDWLRQDQG4XDOLW\&RQWURO

&DOLEUDWLRQDQG4XDOLW\&RQWURO

 &DOLEUDWHGDLO\ZLWKDWOHDVWVL[PHGLDZRUNLQJVWDQGDUGVRYHUWKHUDQJHRI LQWHUHVW D 3UHSDUHDVHULHVRIDTXHRXVIRUPDOGHK\GHVROXWLRQVIRUWKHIRUWLILFDWLRQ RIVDPSOHUV6XJJHVWHGFRQFHQWUDWLRQVLQFOXGHDQG—JP/6HH $SSHQGL[$IRUVWDQGDUGL]DWLRQRIIRUPDOGHK\GHLQZDWHU E &RQQHFWWKHRXWOHWRIDFDUWULGJHVDPSOHUWRDSHUVRQDOVDPSOLQJSXPS ZLWKIOH[LEOHWXELQJ7XUQRQWKHSXPSDQGPDNHVXUHWKHUHLVDIORZRI DLUWKURXJKWKHVDPSOHU F /RDGD—/V\ULQJHZLWKDVHOHFWHGYROXPHRIDTXHRXVIRUPDOGHK\GH VROXWLRQLQWKHUDQJHRIWR—/6XJJHVWHGTXDQWLWLHVRIIRUPDOGHK\GH IRU VSLNLQJ LQFOXGH        DQG  —JVDPSOH G 3ODFH WKH WLS RI WKH V\ULQJH QHHGOH DJDLQVW WKH IUXLW LQ WKH LQOHW RI WKH VDPSOHUDQGHMHFWWKHIRUPDOGHK\GHVROXWLRQ H 3UHSDUHWKHPHGLDZRUNLQJVWDQGDUGVWHSVDDQGE  I 3UHSDUHDGGLWLRQDOZRUNLQJVWDQGDUGVVWHSVEWKURXJKH  J 7UDQVIHUP/DOLTXRWVRIZRUNLQJVWDQGDUGVWRP/YLDOVDQGDQDO\]H VWHSVDQG  K 3UHSDUHFDOLEUDWLRQJUDSKSHDNDUHDRUKHLJKWYV—JIRUPDOGHK\GHSHU VDPSOH  )RUWLI\ DQG DQDO\]H WKUHH TXDOLW\ FRQWURO VSLNHV DQG WKUHH DQDO\VW VSLNHV WR HQVXUHWKDWFDOLEUDWLRQJUDSKLVLQFRQWURO

 &DOLEUDWHGDLO\ZLWKDWOHDVWVL[PHGLDZRUNLQJVWDQGDUGVRYHUWKHUDQJHRI LQWHUHVW D 3UHSDUHDVHULHVRIDTXHRXVIRUPDOGHK\GHVROXWLRQVIRUWKHIRUWLILFDWLRQ RIVDPSOHUV6XJJHVWHGFRQFHQWUDWLRQVLQFOXGHDQG—JP/6HH $SSHQGL[$IRUVWDQGDUGL]DWLRQRIIRUPDOGHK\GHLQZDWHU E &RQQHFWWKHRXWOHWRIDFDUWULGJHVDPSOHUWRDSHUVRQDOVDPSOLQJSXPS ZLWKIOH[LEOHWXELQJ7XUQRQWKHSXPSDQGPDNHVXUHWKHUHLVDIORZRI DLUWKURXJKWKHVDPSOHU F /RDGD—/V\ULQJHZLWKDVHOHFWHGYROXPHRIDTXHRXVIRUPDOGHK\GH VROXWLRQLQWKHUDQJHRIWR—/6XJJHVWHGTXDQWLWLHVRIIRUPDOGHK\GH IRU VSLNLQJ LQFOXGH        DQG  —JVDPSOH G 3ODFH WKH WLS RI WKH V\ULQJH QHHGOH DJDLQVW WKH IUXLW LQ WKH LQOHW RI WKH VDPSOHUDQGHMHFWWKHIRUPDOGHK\GHVROXWLRQ H 3UHSDUHWKHPHGLDZRUNLQJVWDQGDUGVWHSVDDQGE  I 3UHSDUHDGGLWLRQDOZRUNLQJVWDQGDUGVVWHSVEWKURXJKH  J 7UDQVIHUP/DOLTXRWVRIZRUNLQJVWDQGDUGVWRP/YLDOVDQGDQDO\]H VWHSVDQG  K 3UHSDUHFDOLEUDWLRQJUDSKSHDNDUHDRUKHLJKWYV—JIRUPDOGHK\GHSHU VDPSOH  )RUWLI\ DQG DQDO\]H WKUHH TXDOLW\ FRQWURO VSLNHV DQG WKUHH DQDO\VW VSLNHV WR HQVXUHWKDWFDOLEUDWLRQJUDSKLVLQFRQWURO

 0HDVXUHPHQW  6HWOLTXLGFKURPDWRJUDSKDFFRUGLQJWRPDQXIDFWXUHU¶VUHFRPPHQGDWLRQVDQG WRFRQGLWLRQVJLYHQRQSDJH  7UDQVIHUDP/DOLTXRWRIWKHVDPSOHVROXWLRQIURPVWHSWRDP/YLDO&DS WKHYLDO  ,QMHFWD—/VDPSOHDOLTXRW  0HDVXUHSHDNDUHDRUSHDNKHLJKW

 0HDVXUHPHQW  6HWOLTXLGFKURPDWRJUDSKDFFRUGLQJWRPDQXIDFWXUHU¶VUHFRPPHQGDWLRQVDQG WRFRQGLWLRQVJLYHQRQSDJH  7UDQVIHUDP/DOLTXRWRIWKHVDPSOHVROXWLRQIURPVWHSWRDP/YLDO&DS WKHYLDO  ,QMHFWD—/VDPSOHDOLTXRW  0HDVXUHSHDNDUHDRUSHDNKHLJKW

1RWH ,I VDPSOH SHDN LV ODUJHU WKDQ WKH ODUJHVW VWDQGDUG SHDN GLOXWH DQ DOLTXRW RI WKH UHPDLQLQJ VDPSOH VROXWLRQ UHDQDO\]H DQG DSSO\ DSSURSULDWH GLOXWLRQIDFWRULQWKHFDOFXDOWLRQV

1RWH ,I VDPSOH SHDN LV ODUJHU WKDQ WKH ODUJHVW VWDQGDUG SHDN GLOXWH DQ DOLTXRW RI WKH UHPDLQLQJ VDPSOH VROXWLRQ UHDQDO\]H DQG DSSO\ DSSURSULDWH GLOXWLRQIDFWRULQWKHFDOFXDOWLRQV

1RWH 7RHQVXUHYDOLGLW\RIWKHVDPSOHVLGHQWLI\WKRVHVDPSOHVZKLFKFRQWDLQ PRUH WKDQ  —J RI IRUPDOGHK\GH WKH FDSDFLW\ RI WKH VDPSOHUV EHIRUH EUHDNWKURXJKPD\KDYHEHHQH[FHHGHGIRUWKHVHVDPSOHVDQGFROOHFWLRQRI VPDOOHUVDPSOHVZRXOGEHZDUUDQWHG

1RWH 7RHQVXUHYDOLGLW\RIWKHVDPSOHVLGHQWLI\WKRVHVDPSOHVZKLFKFRQWDLQ PRUH WKDQ  —J RI IRUPDOGHK\GH WKH FDSDFLW\ RI WKH VDPSOHUV EHIRUH EUHDNWKURXJKPD\KDYHEHHQH[FHHGHGIRUWKHVHVDPSOHVDQGFROOHFWLRQRI VPDOOHUVDPSOHVZRXOGEHZDUUDQWHG

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV 1RWH7KHVLOLFDJHOEHGRIWKHVDPSOHUZLOOUHWDLQDSSUR[LPDWHO\P/RIWKH RULJLQDOP/

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV 1RWH7KHVLOLFDJHOEHGRIWKHVDPSOHUZLOOUHWDLQDSSUR[LPDWHO\P/RIWKH RULJLQDOP/

&DOLEUDWLRQDQG4XDOLW\&RQWURO

&DOLEUDWLRQDQG4XDOLW\&RQWURO

 &DOLEUDWHGDLO\ZLWKDWOHDVWVL[PHGLDZRUNLQJVWDQGDUGVRYHUWKHUDQJHRI LQWHUHVW D 3UHSDUHDVHULHVRIDTXHRXVIRUPDOGHK\GHVROXWLRQVIRUWKHIRUWLILFDWLRQ RIVDPSOHUV6XJJHVWHGFRQFHQWUDWLRQVLQFOXGHDQG—JP/6HH $SSHQGL[$IRUVWDQGDUGL]DWLRQRIIRUPDOGHK\GHLQZDWHU E &RQQHFWWKHRXWOHWRIDFDUWULGJHVDPSOHUWRDSHUVRQDOVDPSOLQJSXPS ZLWKIOH[LEOHWXELQJ7XUQRQWKHSXPSDQGPDNHVXUHWKHUHLVDIORZRI DLUWKURXJKWKHVDPSOHU F /RDGD—/V\ULQJHZLWKDVHOHFWHGYROXPHRIDTXHRXVIRUPDOGHK\GH VROXWLRQLQWKHUDQJHRIWR—/6XJJHVWHGTXDQWLWLHVRIIRUPDOGHK\GH IRU VSLNLQJ LQFOXGH        DQG  —JVDPSOH G 3ODFH WKH WLS RI WKH V\ULQJH QHHGOH DJDLQVW WKH IUXLW LQ WKH LQOHW RI WKH VDPSOHUDQGHMHFWWKHIRUPDOGHK\GHVROXWLRQ H 3UHSDUHWKHPHGLDZRUNLQJVWDQGDUGVWHSVDDQGE  I 3UHSDUHDGGLWLRQDOZRUNLQJVWDQGDUGVVWHSVEWKURXJKH  J 7UDQVIHUP/DOLTXRWVRIZRUNLQJVWDQGDUGVWRP/YLDOVDQGDQDO\]H VWHSVDQG  K 3UHSDUHFDOLEUDWLRQJUDSKSHDNDUHDRUKHLJKWYV—JIRUPDOGHK\GHSHU VDPSOH  )RUWLI\ DQG DQDO\]H WKUHH TXDOLW\ FRQWURO VSLNHV DQG WKUHH DQDO\VW VSLNHV WR HQVXUHWKDWFDOLEUDWLRQJUDSKLVLQFRQWURO

 &DOLEUDWHGDLO\ZLWKDWOHDVWVL[PHGLDZRUNLQJVWDQGDUGVRYHUWKHUDQJHRI LQWHUHVW D 3UHSDUHDVHULHVRIDTXHRXVIRUPDOGHK\GHVROXWLRQVIRUWKHIRUWLILFDWLRQ RIVDPSOHUV6XJJHVWHGFRQFHQWUDWLRQVLQFOXGHDQG—JP/6HH $SSHQGL[$IRUVWDQGDUGL]DWLRQRIIRUPDOGHK\GHLQZDWHU E &RQQHFWWKHRXWOHWRIDFDUWULGJHVDPSOHUWRDSHUVRQDOVDPSOLQJSXPS ZLWKIOH[LEOHWXELQJ7XUQRQWKHSXPSDQGPDNHVXUHWKHUHLVDIORZRI DLUWKURXJKWKHVDPSOHU F /RDGD—/V\ULQJHZLWKDVHOHFWHGYROXPHRIDTXHRXVIRUPDOGHK\GH VROXWLRQLQWKHUDQJHRIWR—/6XJJHVWHGTXDQWLWLHVRIIRUPDOGHK\GH IRU VSLNLQJ LQFOXGH        DQG  —JVDPSOH G 3ODFH WKH WLS RI WKH V\ULQJH QHHGOH DJDLQVW WKH IUXLW LQ WKH LQOHW RI WKH VDPSOHUDQGHMHFWWKHIRUPDOGHK\GHVROXWLRQ H 3UHSDUHWKHPHGLDZRUNLQJVWDQGDUGVWHSVDDQGE  I 3UHSDUHDGGLWLRQDOZRUNLQJVWDQGDUGVVWHSVEWKURXJKH  J 7UDQVIHUP/DOLTXRWVRIZRUNLQJVWDQGDUGVWRP/YLDOVDQGDQDO\]H VWHSVDQG  K 3UHSDUHFDOLEUDWLRQJUDSKSHDNDUHDRUKHLJKWYV—JIRUPDOGHK\GHSHU VDPSOH  )RUWLI\ DQG DQDO\]H WKUHH TXDOLW\ FRQWURO VSLNHV DQG WKUHH DQDO\VW VSLNHV WR HQVXUHWKDWFDOLEUDWLRQJUDSKLVLQFRQWURO

 0HDVXUHPHQW  6HWOLTXLGFKURPDWRJUDSKDFFRUGLQJWRPDQXIDFWXUHU¶VUHFRPPHQGDWLRQVDQG WRFRQGLWLRQVJLYHQRQSDJH  7UDQVIHUDP/DOLTXRWRIWKHVDPSOHVROXWLRQIURPVWHSWRDP/YLDO&DS WKHYLDO  ,QMHFWD—/VDPSOHDOLTXRW  0HDVXUHSHDNDUHDRUSHDNKHLJKW

 0HDVXUHPHQW  6HWOLTXLGFKURPDWRJUDSKDFFRUGLQJWRPDQXIDFWXUHU¶VUHFRPPHQGDWLRQVDQG WRFRQGLWLRQVJLYHQRQSDJH  7UDQVIHUDP/DOLTXRWRIWKHVDPSOHVROXWLRQIURPVWHSWRDP/YLDO&DS WKHYLDO  ,QMHFWD—/VDPSOHDOLTXRW  0HDVXUHSHDNDUHDRUSHDNKHLJKW

1RWH ,I VDPSOH SHDN LV ODUJHU WKDQ WKH ODUJHVW VWDQGDUG SHDN GLOXWH DQ DOLTXRW RI WKH UHPDLQLQJ VDPSOH VROXWLRQ UHDQDO\]H DQG DSSO\ DSSURSULDWH GLOXWLRQIDFWRULQWKHFDOFXDOWLRQV

1RWH ,I VDPSOH SHDN LV ODUJHU WKDQ WKH ODUJHVW VWDQGDUG SHDN GLOXWH DQ DOLTXRW RI WKH UHPDLQLQJ VDPSOH VROXWLRQ UHDQDO\]H DQG DSSO\ DSSURSULDWH GLOXWLRQIDFWRULQWKHFDOFXDOWLRQV

1RWH 7RHQVXUHYDOLGLW\RIWKHVDPSOHVLGHQWLI\WKRVHVDPSOHVZKLFKFRQWDLQ PRUH WKDQ  —J RI IRUPDOGHK\GH WKH FDSDFLW\ RI WKH VDPSOHUV EHIRUH EUHDNWKURXJKPD\KDYHEHHQH[FHHGHGIRUWKHVHVDPSOHVDQGFROOHFWLRQRI VPDOOHUVDPSOHVZRXOGEHZDUUDQWHG

1RWH 7RHQVXUHYDOLGLW\RIWKHVDPSOHVLGHQWLI\WKRVHVDPSOHVZKLFKFRQWDLQ PRUH WKDQ  —J RI IRUPDOGHK\GH WKH FDSDFLW\ RI WKH VDPSOHUV EHIRUH EUHDNWKURXJKPD\KDYHEHHQH[FHHGHGIRUWKHVHVDPSOHVDQGFROOHFWLRQRI VPDOOHUVDPSOHVZRXOGEHZDUUDQWHG

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

1RWH7KHVL]HRIWKH'13+SHDNVKRXOGEHDERXWWLPHVWKHVL]HRI WKH IRUPDOGHK\GH'13+ SHDN RU ODUJHU 2WKHUZLVH EUHDNWKURXJK IURP WKH VDPSOHUPD\KDYHRFFXUUHG

1RWH7KHVL]HRIWKH'13+SHDNVKRXOGEHDERXWWLPHVWKHVL]HRI WKH IRUPDOGHK\GH'13+ SHDN RU ODUJHU 2WKHUZLVH EUHDNWKURXJK IURP WKH VDPSOHUPD\KDYHRFFXUUHG

 &DOFXODWLRQV  'HWHUPLQHPDVV—JRIIRUPDOGHK\GH:IRXQGLQWKHVDPSOHDQGWKHDYHUDJH PHGLDEODQN%IURPWKHFDOLEUDWLRQJUDSK  &DOFXODWHFRQFHQWUDWLRQ&RIIRUPDOGHKG\HLQWKHDLUYROXPHVDPSOHG9/

 &DOFXODWLRQV  'HWHUPLQHPDVV—JRIIRUPDOGHK\GH:IRXQGLQWKHVDPSOHDQGWKHDYHUDJH PHGLDEODQN%IURPWKHFDOLEUDWLRQJUDSK  &DOFXODWHFRQFHQWUDWLRQ&RIIRUPDOGHKG\HLQWKHDLUYROXPHVDPSOHG9/

&

:%  PJ  P 9

&

1RWH—J/ { PJP

1RWH—J/ { PJP

(YDOXDWLRQRI0HWKRG

(YDOXDWLRQRI0HWKRG

:%  PJ  P 9

 3UHSDUDWLRQDQG6WDQGDUGL]DWLRQRI)RUPDOGHK\GH6WRFN6ROXWLRQ FDPJP/

 3UHSDUDWLRQDQG6WDQGDUGL]DWLRQRI)RUPDOGHK\GH6WRFN6ROXWLRQ FDPJP/

3UHSDUDWLRQ 'LOXWHP/DTXHRXVIRUPDOLQVROXWLRQWR/ZLWKGLVWLOOHGGHLRQL]HGZDWHU 7KLVVROXWLRQLVVWDEOHIRUDWOHDVWWKUHHPRQWKVZKHQVWRUHGDWURRPWHPSHUDWXUH

3UHSDUDWLRQ 'LOXWHP/DTXHRXVIRUPDOLQVROXWLRQWR/ZLWKGLVWLOOHGGHLRQL]HGZDWHU 7KLVVROXWLRQLVVWDEOHIRUDWOHDVWWKUHHPRQWKVZKHQVWRUHGDWURRPWHPSHUDWXUH

6WDQGDUGL]DWLRQE\S+WLWUDWLRQ 3ODFH  P/ RI IUHVKO\ SUHSDUHG  0 VRGLXP VXOSKLWH VROXWLRQ LQ D  P/ EHDNHUDQGVWLUPDJQHWLFDOO\$GMXVWS+WREHWZHHQDQGZLWKEDVHRUDFLG 5HRFUGWKHS+$GGWRP/IRUPDOGHK\GHVWRFNVROXWLRQWKHS+VKRXOG QRZEHJUHDWHUWKDQ7LWUDWHWKHVROXWLRQEDFNWRLWVRULJLQDOS+ZLWK1 VXOSKXULFDFLGP/DFLG PJIRUPDOGHK\GHDERXWP/DFLGQHHGHG  ,IWKHHQGSRLQWS+LVRYHUUXQEDFNWLWUDWHWRWKHHQGSRLQWZLWK1VRGLXP K\GUR[LGH&DOFXODWHWKHFRQFHQWUDWLRQ&VPJP/ RIWKHIRUPDOGHK\GHVWRFN VROXWLRQ

6WDQGDUGL]DWLRQE\S+WLWUDWLRQ 3ODFH  P/ RI IUHVKO\ SUHSDUHG  0 VRGLXP VXOSKLWH VROXWLRQ LQ D  P/ EHDNHUDQGVWLUPDJQHWLFDOO\$GMXVWS+WREHWZHHQDQGZLWKEDVHRUDFLG 5HRFUGWKHS+$GGWRP/IRUPDOGHK\GHVWRFNVROXWLRQWKHS+VKRXOG QRZEHJUHDWHUWKDQ7LWUDWHWKHVROXWLRQEDFNWRLWVRULJLQDOS+ZLWK1 VXOSKXULFDFLGP/DFLG PJIRUPDOGHK\GHDERXWP/DFLGQHHGHG  ,IWKHHQGSRLQWS+LVRYHUUXQEDFNWLWUDWHWRWKHHQGSRLQWZLWK1VRGLXP K\GUR[LGH&DOFXODWHWKHFRQFHQWUDWLRQ&VPJP/ RIWKHIRUPDOGHK\GHVWRFN VROXWLRQ

&V

1 D 9D  1 E 9E  PJ  P/ 9V

&V

1 D 9D  1 E 9E  PJ  P/ 9V

ZKHUH  JHTXLYDOHQWRIIRUPDOGHK\GH 1D QRUPDOLW\RIVXOSKXULFDFLG1 9D YROXPHRIVXOSKXULFDFLGP/ XVHGIRUWLWUDWLRQ 1E QRUPDOLW\RI1D2+1 9E YROXPHRI1D2+P/ XVHGIRUEDFNWLWUDWLRQ 9V YROXPHRIIRUPDOGHK\GHVWRFNVROXWLRQP/

ZKHUH  JHTXLYDOHQWRIIRUPDOGHK\GH 1D QRUPDOLW\RIVXOSKXULFDFLG1 9D YROXPHRIVXOSKXULFDFLGP/ XVHGIRUWLWUDWLRQ 1E QRUPDOLW\RI1D2+1 9E YROXPHRI1D2+P/ XVHGIRUEDFNWLWUDWLRQ 9V YROXPHRIIRUPDOGHK\GHVWRFNVROXWLRQP/

6WDQGDUGL]DWLRQE\FRORULPHWULFWLWUDWLRQ 3ODFH  P/ RI IUHVKO\ SUHSDUHG  0 VRGLXP VXSKLWH DQG  GURSV RI  WK\PRSKWKDOHLQLQGLFDWRUZY LQHWKDQROZDWHULQWRDP/(UOHQPH\HU

6WDQGDUGL]DWLRQE\FRORULPHWULFWLWUDWLRQ 3ODFH  P/ RI IUHVKO\ SUHSDUHG  0 VRGLXP VXSKLWH DQG  GURSV RI  WK\PRSKWKDOHLQLQGLFDWRUZY LQHWKDQROZDWHULQWRDP/(UOHQPH\HU

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

1RWH7KHVL]HRIWKH'13+SHDNVKRXOGEHDERXWWLPHVWKHVL]HRI WKH IRUPDOGHK\GH'13+ SHDN RU ODUJHU 2WKHUZLVH EUHDNWKURXJK IURP WKH VDPSOHUPD\KDYHRFFXUUHG

1RWH7KHVL]HRIWKH'13+SHDNVKRXOGEHDERXWWLPHVWKHVL]HRI WKH IRUPDOGHK\GH'13+ SHDN RU ODUJHU 2WKHUZLVH EUHDNWKURXJK IURP WKH VDPSOHUPD\KDYHRFFXUUHG

 &DOFXODWLRQV  'HWHUPLQHPDVV—JRIIRUPDOGHK\GH:IRXQGLQWKHVDPSOHDQGWKHDYHUDJH PHGLDEODQN%IURPWKHFDOLEUDWLRQJUDSK  &DOFXODWHFRQFHQWUDWLRQ&RIIRUPDOGHKG\HLQWKHDLUYROXPHVDPSOHG9/

 &DOFXODWLRQV  'HWHUPLQHPDVV—JRIIRUPDOGHK\GH:IRXQGLQWKHVDPSOHDQGWKHDYHUDJH PHGLDEODQN%IURPWKHFDOLEUDWLRQJUDSK  &DOFXODWHFRQFHQWUDWLRQ&RIIRUPDOGHKG\HLQWKHDLUYROXPHVDPSOHG9/

&

:%  PJ  P 9

&

1RWH—J/ { PJP

1RWH—J/ { PJP

(YDOXDWLRQRI0HWKRG

(YDOXDWLRQRI0HWKRG

:%  PJ  P 9

 3UHSDUDWLRQDQG6WDQGDUGL]DWLRQRI)RUPDOGHK\GH6WRFN6ROXWLRQ FDPJP/

 3UHSDUDWLRQDQG6WDQGDUGL]DWLRQRI)RUPDOGHK\GH6WRFN6ROXWLRQ FDPJP/

3UHSDUDWLRQ 'LOXWHP/DTXHRXVIRUPDOLQVROXWLRQWR/ZLWKGLVWLOOHGGHLRQL]HGZDWHU 7KLVVROXWLRQLVVWDEOHIRUDWOHDVWWKUHHPRQWKVZKHQVWRUHGDWURRPWHPSHUDWXUH

3UHSDUDWLRQ 'LOXWHP/DTXHRXVIRUPDOLQVROXWLRQWR/ZLWKGLVWLOOHGGHLRQL]HGZDWHU 7KLVVROXWLRQLVVWDEOHIRUDWOHDVWWKUHHPRQWKVZKHQVWRUHGDWURRPWHPSHUDWXUH

6WDQGDUGL]DWLRQE\S+WLWUDWLRQ 3ODFH  P/ RI IUHVKO\ SUHSDUHG  0 VRGLXP VXOSKLWH VROXWLRQ LQ D  P/ EHDNHUDQGVWLUPDJQHWLFDOO\$GMXVWS+WREHWZHHQDQGZLWKEDVHRUDFLG 5HRFUGWKHS+$GGWRP/IRUPDOGHK\GHVWRFNVROXWLRQWKHS+VKRXOG QRZEHJUHDWHUWKDQ7LWUDWHWKHVROXWLRQEDFNWRLWVRULJLQDOS+ZLWK1 VXOSKXULFDFLGP/DFLG PJIRUPDOGHK\GHDERXWP/DFLGQHHGHG  ,IWKHHQGSRLQWS+LVRYHUUXQEDFNWLWUDWHWRWKHHQGSRLQWZLWK1VRGLXP K\GUR[LGH&DOFXODWHWKHFRQFHQWUDWLRQ&VPJP/ RIWKHIRUPDOGHK\GHVWRFN VROXWLRQ

6WDQGDUGL]DWLRQE\S+WLWUDWLRQ 3ODFH  P/ RI IUHVKO\ SUHSDUHG  0 VRGLXP VXOSKLWH VROXWLRQ LQ D  P/ EHDNHUDQGVWLUPDJQHWLFDOO\$GMXVWS+WREHWZHHQDQGZLWKEDVHRUDFLG 5HRFUGWKHS+$GGWRP/IRUPDOGHK\GHVWRFNVROXWLRQWKHS+VKRXOG QRZEHJUHDWHUWKDQ7LWUDWHWKHVROXWLRQEDFNWRLWVRULJLQDOS+ZLWK1 VXOSKXULFDFLGP/DFLG PJIRUPDOGHK\GHDERXWP/DFLGQHHGHG  ,IWKHHQGSRLQWS+LVRYHUUXQEDFNWLWUDWHWRWKHHQGSRLQWZLWK1VRGLXP K\GUR[LGH&DOFXODWHWKHFRQFHQWUDWLRQ&VPJP/ RIWKHIRUPDOGHK\GHVWRFN VROXWLRQ

&V

1 D 9D  1 E 9E  PJ  P/ 9V

&V

1 D 9D  1 E 9E  PJ  P/ 9V

ZKHUH  JHTXLYDOHQWRIIRUPDOGHK\GH 1D QRUPDOLW\RIVXOSKXULFDFLG1 9D YROXPHRIVXOSKXULFDFLGP/ XVHGIRUWLWUDWLRQ 1E QRUPDOLW\RI1D2+1 9E YROXPHRI1D2+P/ XVHGIRUEDFNWLWUDWLRQ 9V YROXPHRIIRUPDOGHK\GHVWRFNVROXWLRQP/

ZKHUH  JHTXLYDOHQWRIIRUPDOGHK\GH 1D QRUPDOLW\RIVXOSKXULFDFLG1 9D YROXPHRIVXOSKXULFDFLGP/ XVHGIRUWLWUDWLRQ 1E QRUPDOLW\RI1D2+1 9E YROXPHRI1D2+P/ XVHGIRUEDFNWLWUDWLRQ 9V YROXPHRIIRUPDOGHK\GHVWRFNVROXWLRQP/

6WDQGDUGL]DWLRQE\FRORULPHWULFWLWUDWLRQ 3ODFH  P/ RI IUHVKO\ SUHSDUHG  0 VRGLXP VXSKLWH DQG  GURSV RI  WK\PRSKWKDOHLQLQGLFDWRUZY LQHWKDQROZDWHULQWRDP/(UOHQPH\HU

6WDQGDUGL]DWLRQE\FRORULPHWULFWLWUDWLRQ 3ODFH  P/ RI IUHVKO\ SUHSDUHG  0 VRGLXP VXSKLWH DQG  GURSV RI  WK\PRSKWKDOHLQLQGLFDWRUZY LQHWKDQROZDWHULQWRDP/(UOHQPH\HU

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

IODVNWLWUDWHWKHFRQWHQWVRIWKHIODVNWRDFRORXUOHVVHQGSRLQWZLWK1VXOIXULF DFLGXVXDOO\RUGURSVLVVXIILFLHQW 7KHLQGLFDWRULVEOXHDWS+YDOXHVDERYH WKHHQGSRLQWDQGLVFRORXUOHVVDWS+YDOXHVEHORZWKHHQGSRLQW7UDQVIHUWR P/RIWKHIRUPDOGHK\GHVROXWLRQWRWKHVDPHIODVNDQGWLWUDWHWKHPL[WXUH ZLWK1VXOSKXULFDFLGWRDFRORXUOHVVHQGSRLQW&DOFXODWHWKHFRQFHQWUDWLRQ& PJP/ RIIRUPDOGHK\GHLQVROXWLRQ

IODVNWLWUDWHWKHFRQWHQWVRIWKHIODVNWRDFRORXUOHVVHQGSRLQWZLWK1VXOIXULF DFLGXVXDOO\RUGURSVLVVXIILFLHQW 7KHLQGLFDWRULVEOXHDWS+YDOXHVDERYH WKHHQGSRLQWDQGLVFRORXUOHVVDWS+YDOXHVEHORZWKHHQGSRLQW7UDQVIHUWR P/RIWKHIRUPDOGHK\GHVROXWLRQWRWKHVDPHIODVNDQGWLWUDWHWKHPL[WXUH ZLWK1VXOSKXULFDFLGWRDFRORXUOHVVHQGSRLQW&DOFXODWHWKHFRQFHQWUDWLRQ& PJP/ RIIRUPDOGHK\GHLQVROXWLRQ

&

1 D 9D  PJ  P/ 9V

&

1 D 9D  PJ  P/ 9V

ZKHUH

 JHTXLYDOHQWRIIRUPDOGHK\GH 1D QRUPDOLW\RIVXOSKXULFDFLG1 9D YROXPHRIVXOSKXULFDFLGXVHGIRUWLWUDWLRQP/ 9V YROXPHRIIRUPDOGHK\GHVWRFNVROXWLRQP/ 1RWH6XOSKXULFDFLG1 LVVXEVWLWXWHGIRU1K\GURFKORULFDFLGZKLFKLV VSHFLILHG LQ 26+$ PHWKRG  LQ RUGHU WR SUHYHQW SRVVLEOH IRUPDWLRQ RI ELVFKORURPHWK\O  HWKHU D SRWHQW FDUFLQRJHQ E\ UHDFWLRQ RI IRUPDOGHK\GH ZLWK K\GURFKORULF DFLG>@ 7KLVFRORULPHWULFWLWUDWLRQZDVDGDSWHGIURP26+$0HWKRG>@ZKLFKZDV EDVHGRQWKHSURFHGXUHRI:DONHU>@

ZKHUH

 8VHRI6.&6DPSOHUIRU)RUPDOGHK\GH

 8VHRI6.&6DPSOHUIRU)RUPDOGHK\GH

7KH6.&,QFVDPSOHUIRUDOGHK\GHV'13+&RDWHGVLOLFDJHOWXEH&DWDORJXH 1R PD\EHXVHGIRUVDPSOLQJIRUPDOGHK\GHZLWKRGLILFDWLRQVRIWKLV PHWKRG7KHVHPRGLILFDWLRQVLQFOXGHWKHIROORZLQJ D 7KHPD[LPXPUHFRPPHQGHGDLUYROXPHVKRXOGEHOHVVWKDQ/DWDQDLU FRQFHQWUDWLRQ RI  PJP LQGLFDWHG RQ SDJH   EHFDXVH WKH XSSHU OLPLWRIWKHPHWKRGIRUWKH6.&VDPSOHULVSUREDEO\OHVVWKDQ—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—/DQGVKRXOGEHGHWHUPLQHGVWHS 

7KH6.&,QFVDPSOHUIRUDOGHK\GHV'13+&RDWHGVLOLFDJHOWXEH&DWDORJXH 1R PD\EHXVHGIRUVDPSOLQJIRUPDOGHK\GHZLWKRGLILFDWLRQVRIWKLV PHWKRG7KHVHPRGLILFDWLRQVLQFOXGHWKHIROORZLQJ D 7KHPD[LPXPUHFRPPHQGHGDLUYROXPHVKRXOGEHOHVVWKDQ/DWDQDLU FRQFHQWUDWLRQ RI  PJP LQGLFDWHG RQ SDJH   EHFDXVH WKH XSSHU OLPLWRIWKHPHWKRGIRUWKH6.&VDPSOHULVSUREDEO\OHVVWKDQ—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—/DQGVKRXOGEHGHWHUPLQHGVWHS 

5()(5(1&(6

5()(5(1&(6

 63 7XFNHU )RUPDOGHK\GH %DFNXS 'DWD 5HSRUW IRU 0HWKRG  ,VVXH  1DWLRQDO ,QVWLWXWHIRU2FFXSDWLRQDO6DIHW\DQG+HDOWK'$57&LQFLQQDWL2+8QSXEOLVKHGUHSRUW IRUHYDOXDWLRQRIPHWKRGPDLQO\ZLWK6XSHOFR6/S'13+VDPSOHUV 

 JHTXLYDOHQWRIIRUPDOGHK\GH 1D QRUPDOLW\RIVXOSKXULFDFLG1 9D YROXPHRIVXOSKXULFDFLGXVHGIRUWLWUDWLRQP/ 9V YROXPHRIIRUPDOGHK\GHVWRFNVROXWLRQP/ 1RWH6XOSKXULFDFLG1 LVVXEVWLWXWHGIRU1K\GURFKORULFDFLGZKLFKLV VSHFLILHG LQ 26+$ PHWKRG  LQ RUGHU WR SUHYHQW SRVVLEOH IRUPDWLRQ RI ELVFKORURPHWK\O  HWKHU D SRWHQW FDUFLQRJHQ E\ UHDFWLRQ RI IRUPDOGHK\GH ZLWK K\GURFKORULF DFLG>@ 7KLVFRORULPHWULFWLWUDWLRQZDVDGDSWHGIURP26+$0HWKRG>@ZKLFKZDV EDVHGRQWKHSURFHGXUHRI:DONHU>@

 63 7XFNHU )RUPDOGHK\GH %DFNXS 'DWD 5HSRUW IRU 0HWKRG  ,VVXH  1DWLRQDO ,QVWLWXWHIRU2FFXSDWLRQDO6DIHW\DQG+HDOWK'$57&LQFLQQDWL2+8QSXEOLVKHGUHSRUW IRUHYDOXDWLRQRIPHWKRGPDLQO\ZLWK6XSHOFR6/S'13+VDPSOHUV 

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

IODVNWLWUDWHWKHFRQWHQWVRIWKHIODVNWRDFRORXUOHVVHQGSRLQWZLWK1VXOIXULF DFLGXVXDOO\RUGURSVLVVXIILFLHQW 7KHLQGLFDWRULVEOXHDWS+YDOXHVDERYH WKHHQGSRLQWDQGLVFRORXUOHVVDWS+YDOXHVEHORZWKHHQGSRLQW7UDQVIHUWR P/RIWKHIRUPDOGHK\GHVROXWLRQWRWKHVDPHIODVNDQGWLWUDWHWKHPL[WXUH ZLWK1VXOSKXULFDFLGWRDFRORXUOHVVHQGSRLQW&DOFXODWHWKHFRQFHQWUDWLRQ& PJP/ RIIRUPDOGHK\GHLQVROXWLRQ

IODVNWLWUDWHWKHFRQWHQWVRIWKHIODVNWRDFRORXUOHVVHQGSRLQWZLWK1VXOIXULF DFLGXVXDOO\RUGURSVLVVXIILFLHQW 7KHLQGLFDWRULVEOXHDWS+YDOXHVDERYH WKHHQGSRLQWDQGLVFRORXUOHVVDWS+YDOXHVEHORZWKHHQGSRLQW7UDQVIHUWR P/RIWKHIRUPDOGHK\GHVROXWLRQWRWKHVDPHIODVNDQGWLWUDWHWKHPL[WXUH ZLWK1VXOSKXULFDFLGWRDFRORXUOHVVHQGSRLQW&DOFXODWHWKHFRQFHQWUDWLRQ& PJP/ RIIRUPDOGHK\GHLQVROXWLRQ

&

1 D 9D  PJ  P/ 9V

&

1 D 9D  PJ  P/ 9V

ZKHUH

 JHTXLYDOHQWRIIRUPDOGHK\GH 1D QRUPDOLW\RIVXOSKXULFDFLG1 9D YROXPHRIVXOSKXULFDFLGXVHGIRUWLWUDWLRQP/ 9V YROXPHRIIRUPDOGHK\GHVWRFNVROXWLRQP/ 1RWH6XOSKXULFDFLG1 LVVXEVWLWXWHGIRU1K\GURFKORULFDFLGZKLFKLV VSHFLILHG LQ 26+$ PHWKRG  LQ RUGHU WR SUHYHQW SRVVLEOH IRUPDWLRQ RI ELVFKORURPHWK\O  HWKHU D SRWHQW FDUFLQRJHQ E\ UHDFWLRQ RI IRUPDOGHK\GH ZLWK K\GURFKORULF DFLG>@ 7KLVFRORULPHWULFWLWUDWLRQZDVDGDSWHGIURP26+$0HWKRG>@ZKLFKZDV EDVHGRQWKHSURFHGXUHRI:DONHU>@

ZKHUH

 8VHRI6.&6DPSOHUIRU)RUPDOGHK\GH

 8VHRI6.&6DPSOHUIRU)RUPDOGHK\GH

7KH6.&,QFVDPSOHUIRUDOGHK\GHV'13+&RDWHGVLOLFDJHOWXEH&DWDORJXH 1R PD\EHXVHGIRUVDPSOLQJIRUPDOGHK\GHZLWKRGLILFDWLRQVRIWKLV PHWKRG7KHVHPRGLILFDWLRQVLQFOXGHWKHIROORZLQJ D 7KHPD[LPXPUHFRPPHQGHGDLUYROXPHVKRXOGEHOHVVWKDQ/DWDQDLU FRQFHQWUDWLRQ RI  PJP LQGLFDWHG RQ SDJH   EHFDXVH WKH XSSHU OLPLWRIWKHPHWKRGIRUWKH6.&VDPSOHULVSUREDEO\OHVVWKDQ—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—/DQGVKRXOGEHGHWHUPLQHGVWHS 

7KH6.&,QFVDPSOHUIRUDOGHK\GHV'13+&RDWHGVLOLFDJHOWXEH&DWDORJXH 1R PD\EHXVHGIRUVDPSOLQJIRUPDOGHK\GHZLWKRGLILFDWLRQVRIWKLV PHWKRG7KHVHPRGLILFDWLRQVLQFOXGHWKHIROORZLQJ D 7KHPD[LPXPUHFRPPHQGHGDLUYROXPHVKRXOGEHOHVVWKDQ/DWDQDLU FRQFHQWUDWLRQ RI  PJP LQGLFDWHG RQ SDJH   EHFDXVH WKH XSSHU OLPLWRIWKHPHWKRGIRUWKH6.&VDPSOHULVSUREDEO\OHVVWKDQ—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—/DQGVKRXOGEHGHWHUPLQHGVWHS 

5()(5(1&(6

5()(5(1&(6

 63 7XFNHU )RUPDOGHK\GH %DFNXS 'DWD 5HSRUW IRU 0HWKRG  ,VVXH  1DWLRQDO ,QVWLWXWHIRU2FFXSDWLRQDO6DIHW\DQG+HDOWK'$57&LQFLQQDWL2+8QSXEOLVKHGUHSRUW IRUHYDOXDWLRQRIPHWKRGPDLQO\ZLWK6XSHOFR6/S'13+VDPSOHUV 

 JHTXLYDOHQWRIIRUPDOGHK\GH 1D QRUPDOLW\RIVXOSKXULFDFLG1 9D YROXPHRIVXOSKXULFDFLGXVHGIRUWLWUDWLRQP/ 9V YROXPHRIIRUPDOGHK\GHVWRFNVROXWLRQP/ 1RWH6XOSKXULFDFLG1 LVVXEVWLWXWHGIRU1K\GURFKORULFDFLGZKLFKLV VSHFLILHG LQ 26+$ PHWKRG  LQ RUGHU WR SUHYHQW SRVVLEOH IRUPDWLRQ RI ELVFKORURPHWK\O  HWKHU D SRWHQW FDUFLQRJHQ E\ UHDFWLRQ RI IRUPDOGHK\GH ZLWK K\GURFKORULF DFLG>@ 7KLVFRORULPHWULFWLWUDWLRQZDVDGDSWHGIURP26+$0HWKRG>@ZKLFKZDV EDVHGRQWKHSURFHGXUHRI:DONHU>@

 63 7XFNHU )RUPDOGHK\GH %DFNXS 'DWD 5HSRUW IRU 0HWKRG  ,VVXH  1DWLRQDO ,QVWLWXWHIRU2FFXSDWLRQDO6DIHW\DQG+HDOWK'$57&LQFLQQDWL2+8QSXEOLVKHGUHSRUW IRUHYDOXDWLRQRIPHWKRGPDLQO\ZLWK6XSHOFR6/S'13+VDPSOHUV 

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

&KHPLFDO$QDO\VLVRI6HOHFWHG$LU3ROOXWDQWV 

 3&,UDQHWD5$&ROODPDWL'1&RVWHOOR5-&URZOH\5/)HUPDQGHV05+RSNLQV &(.QROHV'00DUWLQ$9DOLGDWLRQ6WXG\RID1HZ$FWLYH6DPSOHUIRUWKH$QDO\VLV RI)RUPDOGHK\GHLQ:RUNSODFHDQG,QGRRU$LU:DWHUV&RUS0LOIRUG0$8QSXEOLVKHG UHSRUWIRUHYDOXDWLRQRIPHWKRGZLWK:DWHUV6HS3DN;3R6XUH$OGHK\GHVDPSOHUV^   7(.OHLQGLHQVW:(&RUVH)7%ODQFKDUG(YDODXWLRQRIWKH3HUIRUPDQFHRI'13+ FRDWHG6LOLFD*HODQG&&DUWULGJHVLQWKH0HDVXUHPHQWRI)RUPDOGHK\GHLQWKH3UHVHQFH DQG$EVHQFHRI2]RQH(QYLURQPHQWDO6FLHQFH 7HFKQRORJ\ ±   1,26+IRUPDOGHK\GHE\*&0HWKRG,Q(OOHU30&DVVLQHOOL0((GV1,26+ 0DQXDORI$QDO\WLFDO0HWKRGVWK(GQ&LQFLQQDWL2+86'HSDUWPHQWRI+HDOWKDQG +XPDQ6HUYLFHV3XEOLF+HDOWK6HUYLFH&HQWHUVIRU'LVHDVH&RQWURODQG3UHYHQWLRQ1DWLRQDO ,QVWLWXWHIRU2FFXSDWLRQDO6DIHW\DQG+HDOWK'++61,26+ 3XEOLFDWLRQ1R±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Š DQG %LRORJLFDO ([SRVXUH ,QGLFHV $PHULFDQ &RQIHUHQFHRI*RYHUQPHQWDO,QGXVWULDO+\JLHQLVWV,QF&LQFLQQDWL2+  $&*,+GRFXPHQWDLRQRI7KUHVKROG/LPLW9DOXHVDQG%LRORJLFDO([SRVXUH,QGLFHV6L[WK (GQ )RUPDOGHK\GH SS ± $PHULFDQ &RQIHUHQFH RI *RYHUQPHQWDO ,QGXVWULDO +\JLHQLVWV,QF&LQFLQQDWL2+   &RGHRI)HGHUDO5HJXODWLRQV7LWOH3DUW&)5&KDSWHU;9,, (GLWLRQ )RUPDOGHK\GHSS±2FFXSDWLRQDO6DIHW\DQG+HDOWK$GPLQLVWUDWLRQ /DERU86*RYHUQPHQW3ULQWLQJ2IILFH:DVKLQJWRQ'&   .HQQHG\(5)LVFKEDFK7-6RQJ5(OOHU3(6KXOPDQ6$*XLGHOLQHVIRU$LU6DPSOLQJ DQG$QDO\WLFOD0HWKRG'HYHORSPHQWDQG(YDOXDWLRQ&LQFLQQDWL2+1DWLRQDO,QVWLWXWH IRU2FFXSDWLRQDO6DIHW\DQG+HDOWK'++61,26+ 3XEOLFDWLRQ1R±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Š DQG %LRORJLFDO ([SRVXUH ,QGLFHV $PHULFDQ &RQIHUHQFHRI*RYHUQPHQWDO,QGXVWULDO+\JLHQLVWV,QF&LQFLQQDWL2+  $&*,+GRFXPHQWDLRQRI7KUHVKROG/LPLW9DOXHVDQG%LRORJLFDO([SRVXUH,QGLFHV6L[WK (GQ )RUPDOGHK\GH SS ± $PHULFDQ &RQIHUHQFH RI *RYHUQPHQWDO ,QGXVWULDO +\JLHQLVWV,QF&LQFLQQDWL2+   &RGHRI)HGHUDO5HJXODWLRQV7LWOH3DUW&)5&KDSWHU;9,, (GLWLRQ )RUPDOGHK\GHSS±2FFXSDWLRQDO6DIHW\DQG+HDOWK$GPLQLVWUDWLRQ /DERU86*RYHUQPHQW3ULQWLQJ2IILFH:DVKLQJWRQ'&   .HQQHG\(5)LVFKEDFK7-6RQJ5(OOHU3(6KXOPDQ6$*XLGHOLQHVIRU$LU6DPSOLQJ DQG$QDO\WLFOD0HWKRG'HYHORSPHQWDQG(YDOXDWLRQ&LQFLQQDWL2+1DWLRQDO,QVWLWXWH IRU2FFXSDWLRQDO6DIHW\DQG+HDOWK'++61,26+ 3XEOLFDWLRQ1R±   :DWHUV&RUS:DWHUV6HS3DN;3R6RXUH$OGHK\GH6DPSOHU&DUHDQG8VH0DQXDO:DWHUV &RUS0LOIRUG0$S   :DONHU-))RUPDOGHK\GH7KLUG(GQ&KDSWHUS$PHULFDQ&KHPFLDO6RFLHW\ 0RQRJUDSK6HULHV5HLQKROG3XEOLVKLQJ&RUSRUDWLRQ1HZ@)RUPDOGHK\GHRQ'XVW7H[WLOHRU:RRG 0HWKRG,Q(OOHU30 &DVVLQHOOL0((GV1,26+0DQXDORI$QDO\WLFDO0HWKRGVWK(GQ&LQFLQQDWL2+ 86'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV3XEOLF+HDOWK6HUYLFH&HQWUHVIRU'LVHDVH &RQWURODQG3UHYHQWLRQ1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQDO6DIHW\DQG+HDOWK'++6 1,26+ 3XEOLFDWLRQ1R  /LSDUL ) 6ZDULQ 6 >@ 'HWHUPLQDWLRQ RI )RUPDOGHK\GH DQG 2WKHU $OGHK\GHV LQ $XWRPRELOH ([KDXVW ZLWK DQ ,PSURYHG  'LQLWURSKHQ\OK\GUD]LQH 0HWKRG - &KURPDWRJU  'ROOEHUJ''6PLWK'/7KDUU'*>@/DE)LHOG&RRUGLQDWLRQ$SSO,QG+\J ))  $&*,+  7KUHVKROG /LPLW 9DOXHVŠ DQG %LRORJLFDO ([SRVXUH ,QGLFHV $PHULFDQ &RQIHUHQFHRI*RYHUQPHQWDO,QGXVWULDO+\JLHQLVWV,QF&LQFLQQDWL2+  $&*,+GRFXPHQWDLRQRI7KUHVKROG/LPLW9DOXHVDQG%LRORJLFDO([SRVXUH,QGLFHV6L[WK (GQ )RUPDOGHK\GH SS ± $PHULFDQ &RQIHUHQFH RI *RYHUQPHQWDO ,QGXVWULDO +\JLHQLVWV,QF&LQFLQQDWL2+   &RGHRI)HGHUDO5HJXODWLRQV7LWOH3DUW&)5&KDSWHU;9,, (GLWLRQ )RUPDOGHK\GHSS±2FFXSDWLRQDO6DIHW\DQG+HDOWK$GPLQLVWUDWLRQ /DERU86*RYHUQPHQW3ULQWLQJ2IILFH:DVKLQJWRQ'&   .HQQHG\(5)LVFKEDFK7-6RQJ5(OOHU3(6KXOPDQ6$*XLGHOLQHVIRU$LU6DPSOLQJ DQG$QDO\WLFOD0HWKRG'HYHORSPHQWDQG(YDOXDWLRQ&LQFLQQDWL2+1DWLRQDO,QVWLWXWH IRU2FFXSDWLRQDO6DIHW\DQG+HDOWK'++61,26+ 3XEOLFDWLRQ1R±   :DWHUV&RUS:DWHUV6HS3DN;3R6RXUH$OGHK\GH6DPSOHU&DUHDQG8VH0DQXDO:DWHUV &RUS0LOIRUG0$S   :DONHU-))RUPDOGHK\GH7KLUG(GQ&KDSWHUS$PHULFDQ&KHPFLDO6RFLHW\ 0RQRJUDSK6HULHV5HLQKROG3XEOLVKLQJ&RUSRUDWLRQ1HZ@)RUPDOGHK\GHRQ'XVW7H[WLOHRU:RRG 0HWKRG,Q(OOHU30 &DVVLQHOOL0((GV1,26+0DQXDORI$QDO\WLFDO0HWKRGVWK(GQ&LQFLQQDWL2+ 86'HSDUWPHQWRI+HDOWKDQG+XPDQ6HUYLFHV3XEOLF+HDOWK6HUYLFH&HQWUHVIRU'LVHDVH &RQWURODQG3UHYHQWLRQ1DWLRQDO,QVWLWXWHIRU2FFXSDWLRQDO6DIHW\DQG+HDOWK'++6 1,26+ 3XEOLFDWLRQ1R  /LSDUL ) 6ZDULQ 6 >@ 'HWHUPLQDWLRQ RI )RUPDOGHK\GH DQG 2WKHU $OGHK\GHV LQ $XWRPRELOH ([KDXVW ZLWK DQ ,PSURYHG  'LQLWURSKHQ\OK\GUD]LQH 0HWKRG - &KURPDWRJU  'ROOEHUJ''6PLWK'/7KDUU'*>@/DE)LHOG&RRUGLQDWLRQ$SSO,QG+\J ))  $&*,+  7KUHVKROG /LPLW 9DOXHVŠ DQG %LRORJLFDO ([SRVXUH ,QGLFHV $PHULFDQ &RQIHUHQFHRI*RYHUQPHQWDO,QGXVWULDO+\JLHQLVWV,QF&LQFLQQDWL2+  $&*,+GRFXPHQWDLRQRI7KUHVKROG/LPLW9DOXHVDQG%LRORJLFDO([SRVXUH,QGLFHV6L[WK (GQ )RUPDOGHK\GH SS ± $PHULFDQ &RQIHUHQFH RI *RYHUQPHQWDO ,QGXVWULDO +\JLHQLVWV,QF&LQFLQQDWL2+   &RGHRI)HGHUDO5HJXODWLRQV7LWOH3DUW&)5&KDSWHU;9,, (GLWLRQ )RUPDOGHK\GHSS±2FFXSDWLRQDO6DIHW\DQG+HDOWK$GPLQLVWUDWLRQ /DERU86*RYHUQPHQW3ULQWLQJ2IILFH:DVKLQJWRQ'&   .HQQHG\(5)LVFKEDFK7-6RQJ5(OOHU3(6KXOPDQ6$*XLGHOLQHVIRU$LU6DPSOLQJ DQG$QDO\WLFOD0HWKRG'HYHORSPHQWDQG(YDOXDWLRQ&LQFLQQDWL2+1DWLRQDO,QVWLWXWH IRU2FFXSDWLRQDO6DIHW\DQG+HDOWK'++61,26+ 3XEOLFDWLRQ1R±   :DWHUV&RUS:DWHUV6HS3DN;3R6RXUH$OGHK\GH6DPSOHU&DUHDQG8VH0DQXDO:DWHUV &RUS0LOIRUG0$S   :DONHU-))RUPDOGHK\GH7KLUG(GQ&KDSWHUS$PHULFDQ&KHPFLDO6RFLHW\ 0RQRJUDSK6HULHV5HLQKROG3XEOLVKLQJ&RUSRUDWLRQ1HZ62 @ PJ  P

 u

 u  

 PJ  P

 P  P 

 FP  FP

&RQFHQWUDWLRQ LQ PJ &RQFHQWUDWLRQ LQ SSP u

 ZHLJKW  P X

Ö SDUW 0 PJ u u    SDUWV  J

 u

 u  

 P  P 

 FP  FP

7KHZHLJKWRIVSHFLHVLLQPLVWKHGHQVLW\RUWKHLQYHUVHRIWKHVSHFLILF YROXPH  ZHLJKW  P X

Ö ZKHUH973LVWKHYROXPHRFFXSLHGE\JPROH %XWLWLVDOVRWUXHWKDW X 973  0 DW D JLYHQ WHPSHUDWXUH DQG SUHVVXUH $W ƒ& DQG  PP +J WKLV YROXPH LV P7KXVZHKDYHDWWKLVWHPSHUDWXUHDQGSUHVVXUH Ö SDUW 0 PJ u u    SDUWV  J

FRQFHQWUDWLRQ LQ PJ  P

&RQYHUVLRQIDFWRUVIRUVHYHUDODLUSROOXWDQWVDUHJLYHQLQ7DEOH$

 PJ  P

+RZLVWKHFRQYHUVLRQHVWDEOLVKHG" ,IZHDUHJLYHQDFRQFHQWUDWLRQLQSSPWKLVLVDFRQFHQWUDWLRQE\YROXPHDQG LIZHZDQW—JPZHPXVWFRQYHUWWRFRQFHQWUDWLRQE\ZHLJKWLQDJLYHQYROXPH :HKDYH

U

Ö ZKHUH973LVWKHYROXPHRFFXSLHGE\JPROH %XWLWLVDOVRWUXHWKDW X 973  0 DW D JLYHQ WHPSHUDWXUH DQG SUHVVXUH $W ƒ& DQG  PP +J WKLV YROXPH LV P7KXVZHKDYHDWWKLVWHPSHUDWXUHDQGSUHVVXUH

Ö 0 u  

Ö LVWKHPROHFXODUZHLJKW)RU62 ZHKDYHIRUSSP ZKHUH 0 

 SSP

7KHZHLJKWRIVSHFLHVLLQPLVWKHGHQVLW\RUWKHLQYHUVHRIWKHVSHFLILF YROXPH U

$WDWHPSHUDWXUHRIƒ&DQGDSUHVVXUHRIPP+JZHKDYH

>62 @ PJ  P

+RZLVWKHFRQYHUVLRQHVWDEOLVKHG" ,IZHDUHJLYHQDFRQFHQWUDWLRQLQSSPWKLVLVDFRQFHQWUDWLRQE\YROXPHDQG LIZHZDQW—JPZHPXVWFRQYHUWWRFRQFHQWUDWLRQE\ZHLJKWLQDJLYHQYROXPH :HKDYH  SSP

$SSHQGL[HV 

FRQFHQWUDWLRQ LQ PJ  P

&RQYHUVLRQIDFWRUVIRUVHYHUDODLUSROOXWDQWVDUHJLYHQLQ7DEOH$

$SSHQGL[HV 

$33(1',;

$33(1',;

&RQYHUVLRQIURPSSPWR—JP

&RQYHUVLRQIURPSSPWR—JP

$WDWHPSHUDWXUHRIƒ&DQGDSUHVVXUHRIPP+JZHKDYH

&RQFHQWUDWLRQ LQ PJ &RQFHQWUDWLRQ LQ SSP u

Ö 0 u  

Ö LVWKHPROHFXODUZHLJKW)RU62 ZHKDYHIRUSSP ZKHUH 0  >62 @ PJ  P

 u

 u  

 PJ  P

+RZLVWKHFRQYHUVLRQHVWDEOLVKHG" ,IZHDUHJLYHQDFRQFHQWUDWLRQLQSSPWKLVLVDFRQFHQWUDWLRQE\YROXPHDQG LIZHZDQW—JPZHPXVWFRQYHUWWRFRQFHQWUDWLRQE\ZHLJKWLQDJLYHQYROXPH :HKDYH  SSP

 P  P 

 FP  FP

 ZHLJKW  P X

&RQFHQWUDWLRQ LQ PJ &RQFHQWUDWLRQ LQ SSP u

FRQFHQWUDWLRQ LQ PJ  P

&RQYHUVLRQIDFWRUVIRUVHYHUDODLUSROOXWDQWVDUHJLYHQLQ7DEOH$

Ö 0 u  

Ö LVWKHPROHFXODUZHLJKW)RU62 ZHKDYHIRUSSP ZKHUH 0  >62 @ PJ  P

 u

 u  

 PJ  P

+RZLVWKHFRQYHUVLRQHVWDEOLVKHG" ,IZHDUHJLYHQDFRQFHQWUDWLRQLQSSPWKLVLVDFRQFHQWUDWLRQE\YROXPHDQG LIZHZDQW—JPZHPXVWFRQYHUWWRFRQFHQWUDWLRQE\ZHLJKWLQDJLYHQYROXPH :HKDYH  P  P 

 FP  FP

7KHZHLJKWRIVSHFLHVLLQPLVWKHGHQVLW\RUWKHLQYHUVHRIWKHVSHFLILF YROXPH U

Ö ZKHUH973LVWKHYROXPHRFFXSLHGE\JPROH %XWLWLVDOVRWUXHWKDW X 973  0 DW D JLYHQ WHPSHUDWXUH DQG SUHVVXUH $W ƒ& DQG  PP +J WKLV YROXPH LV P7KXVZHKDYHDWWKLVWHPSHUDWXUHDQGSUHVVXUH Ö SDUW 0 PJ u u    SDUWV  J

$WDWHPSHUDWXUHRIƒ&DQGDSUHVVXUHRIPP+JZHKDYH

 SSP

7KHZHLJKWRIVSHFLHVLLQPLVWKHGHQVLW\RUWKHLQYHUVHRIWKHVSHFLILF YROXPH U

$SSHQGL[HV 

 ZHLJKW  P X

Ö ZKHUH973LVWKHYROXPHRFFXSLHGE\JPROH %XWLWLVDOVRWUXHWKDW X 973  0 DW D JLYHQ WHPSHUDWXUH DQG SUHVVXUH $W ƒ& DQG  PP +J WKLV YROXPH LV P7KXVZHKDYHDWWKLVWHPSHUDWXUHDQGSUHVVXUH Ö SDUW 0 PJ u u    SDUWV  J

FRQFHQWUDWLRQ LQ PJ  P

&RQYHUVLRQIDFWRUVIRUVHYHUDODLUSROOXWDQWVDUHJLYHQLQ7DEOH$

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

&RQYHUVLRQ IDFWRUV IRU DLU SROOXWDQWV

&RQYHUVLRQ IDFWRUV IRU DLU SROOXWDQWV

&DUERQPRQR[LGH&2

ƒ&PP ƒ&PP

SSP —JP SSP —JP

&DUERQPRQR[LGH&2

ƒ&PP ƒ&PP

SSP —JP SSP —JP

1LWULFR[LGH12

ƒ&PP

SSP —JP

1LWULFR[LGH12

ƒ&PP

SSP —JP

ƒ&PP

—JP

1LWURJHQGLR[LGH12

ƒ&PP

SSP —JP

—JP

ƒ&PP ƒ&PP

SSP —JP SSP —JP

1LWURJHQGLR[LGH12 2]RQH 2

ƒ&PP ƒ&PP

SSP SSP —JP

2]RQH 2

ƒ&PP

SSP —JP

3$1>&+&2 212@

ƒ&PP

SSP —JP

ƒ&PP

—JP

6XOSKXUGLR[LGH62

ƒ&PP

SSP —JP

3$1>&+&2 212@ 6XOSKXUGLR[LGH62

SSP

SSP

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

&RQYHUVLRQ IDFWRUV IRU DLU SROOXWDQWV

&RQYHUVLRQ IDFWRUV IRU DLU SROOXWDQWV

&DUERQPRQR[LGH&2

ƒ&PP ƒ&PP

SSP —JP SSP —JP

&DUERQPRQR[LGH&2

ƒ&PP ƒ&PP

SSP —JP SSP —JP

1LWULFR[LGH12

ƒ&PP

SSP —JP

1LWULFR[LGH12

ƒ&PP

SSP —JP

ƒ&PP

—JP

1LWURJHQGLR[LGH12

ƒ&PP

SSP —JP

—JP

ƒ&PP ƒ&PP

SSP —JP SSP —JP

1LWURJHQGLR[LGH12 2]RQH 2 3$1>&+&2 212@ 6XOSKXUGLR[LGH62

SSP

ƒ&PP ƒ&PP

SSP SSP —JP

2]RQH 2

ƒ&PP

SSP —JP

3$1>&+&2 212@

ƒ&PP

SSP —JP

ƒ&PP

—JP

6XOSKXUGLR[LGH62

ƒ&PP

SSP —JP

SSP

$SSHQGL[HV 

$SSHQGL[HV 

$33(1',;

$33(1',;

3K\VLFDO3URSHUWLHVRI)OXLGV

3K\VLFDO3URSHUWLHVRI)OXLGV

7DEOH3URSHUWLHVRIGU\DLUDWDWPRVSKHULFSUHVVXUH

7DEOH3URSHUWLHVRIGU\DLUDWDWPRVSKHULFSUHVVXUH

7 ƒ&

U NJP

—Pî 1VP

N :P.

&S -NJ.

7 ƒ&

U NJP

—Pî 1VP

N :P.

&S -NJ.

          

          

          

          

          

          

          

          

          

          

7DEOH  3URSHUWLHV RI JDVHV DW DWPRVSKHULF SUHVVXUH *DV

0ROHFXODU ZW

&DUERQPRQR[LGH +HOLXP +\GURJHQ 1LWURJHQ 2[\JHQ $PPRQLD +\GURJHQVXOSKLGH 0HWKDQH 1LWULFR[LGH 6XOSKXUGLR[LGH

7DEOH  3URSHUWLHV RI JDVHV DW DWPRVSKHULF SUHVVXUH

*DVFRQVWDQW5 -NJ.

         

&S -NJ.

         

         

5DWLRRI VSHFLILF KHDW

. :P. KHDWV J

*DV

0ROHFXODU ZW

         

      ±   ±

&DUERQPRQR[LGH +HOLXP +\GURJHQ 1LWURJHQ 2[\JHQ $PPRQLD +\GURJHQVXOSKLGH 0HWKDQH 1LWULFR[LGH 6XOSKXUGLR[LGH

*DVFRQVWDQW5 -NJ.

         

&S -NJ.

         

         

$SSHQGL[HV 

5DWLRRI VSHFLILF KHDW

. :P. KHDWV J

         

      ±   ±

$SSHQGL[HV 

$33(1',;

$33(1',;

3K\VLFDO3URSHUWLHVRI)OXLGV

3K\VLFDO3URSHUWLHVRI)OXLGV

7DEOH3URSHUWLHVRIGU\DLUDWDWPRVSKHULFSUHVVXUH

7DEOH3URSHUWLHVRIGU\DLUDWDWPRVSKHULFSUHVVXUH

7 ƒ&

U NJP

—Pî 1VP

N :P.

&S -NJ.

7 ƒ&

U NJP

—Pî 1VP

N :P.

&S -NJ.

          

          

          

          

          

          

          

          

          

          

7DEOH  3URSHUWLHV RI JDVHV DW DWPRVSKHULF SUHVVXUH *DV

&DUERQPRQR[LGH +HOLXP +\GURJHQ 1LWURJHQ 2[\JHQ $PPRQLD +\GURJHQVXOSKLGH 0HWKDQH 1LWULFR[LGH 6XOSKXUGLR[LGH

0ROHFXODU ZW

         

*DVFRQVWDQW5 -NJ.

         

7DEOH  3URSHUWLHV RI JDVHV DW DWPRVSKHULF SUHVVXUH &S -NJ.

         

5DWLRRI VSHFLILF KHDW

. :P. KHDWV J

*DV

         

      ±   ±

&DUERQPRQR[LGH +HOLXP +\GURJHQ 1LWURJHQ 2[\JHQ $PPRQLD +\GURJHQVXOSKLGH 0HWKDQH 1LWULFR[LGH 6XOSKXUGLR[LGH

0ROHFXODU ZW

         

*DVFRQVWDQW5 -NJ.

         

&S -NJ.

         

5DWLRRI VSHFLILF KHDW

. :P. KHDWV J

         

      ±   ±

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

$33(1',;

$33(1',;

7KUHVKROG/LPLW9DOXHV7/9 IRU6RPH &RPPRQ3ROOXWDQWV

7KUHVKROG/LPLW9DOXHV7/9 IRU6RPH &RPPRQ3ROOXWDQWV

7/9LVH[SRVXUHOLPLWIRUZRUNLQJDGXOWIRUDKRXUZHHNDQGIRUOLIHWLPHZLWKRXW DGYHUVH HIIHFWV 7/9V DUH GHWHUPLQHG IURP DQLPDO H[SHULPHQWDO GDWD PHGLFDO NQRZOHGJHDQGH[SHULHQFHHSLGHPLRORJ\VXUYH\VDQGHQYLURQPHQWDOVWXGLHV

7/9LVH[SRVXUHOLPLWIRUZRUNLQJDGXOWIRUDKRXUZHHNDQGIRUOLIHWLPHZLWKRXW DGYHUVH HIIHFWV 7/9V DUH GHWHUPLQHG IURP DQLPDO H[SHULPHQWDO GDWD PHGLFDO NQRZOHGJHDQGH[SHULHQFHHSLGHPLRORJ\VXUYH\VDQGHQYLURQPHQWDOVWXGLHV

3ROOXWDQW $FHWDOGHK\GH $FHWRQH $FUROLWULOH $PPRQLD $QLOLQH $UVHQLF $UVLQH %HQ]HQH %HU\OOLXP %URPLQH %XWDQRQH 0HWK\OHWK\ONHWRQH &DGPLXPGXVWVDOWV &DUEDU\O VHYLQ &DUERQGLR[LGH &DUERQGLVXOSKLGH &DUERQPRQR[LGH &DUERQ WHWUDFKORULGH &DUERQ\O FKORULGH SKRVJHQH &KORULQH &KORURIRUP &KURPDWHV &RSSHU &\DQRJHQ

SSP

PJP±

     ±     

     ±   ±  

± ±        ±  

          ± 

3ROOXWDQW $FHWDOGHK\GH $FHWRQH $FUROLWULOH $PPRQLD $QLOLQH $UVHQLF $UVLQH %HQ]HQH %HU\OOLXP %URPLQH %XWDQRQH 0HWK\OHWK\ONHWRQH &DGPLXPGXVWVDOWV &DUEDU\O VHYLQ &DUERQGLR[LGH &DUERQGLVXOSKLGH &DUERQPRQR[LGH &DUERQ WHWUDFKORULGH &DUERQ\O FKORULGH SKRVJHQH &KORULQH &KORURIRUP &KURPDWHV &RSSHU &\DQRJHQ

SSP

PJP±

     ±     

     ±   ±  

± ±        ±  

          ± 

&RQWG

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

&RQWG

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

$33(1',;

$33(1',;

7KUHVKROG/LPLW9DOXHV7/9 IRU6RPH &RPPRQ3ROOXWDQWV

7KUHVKROG/LPLW9DOXHV7/9 IRU6RPH &RPPRQ3ROOXWDQWV

7/9LVH[SRVXUHOLPLWIRUZRUNLQJDGXOWIRUDKRXUZHHNDQGIRUOLIHWLPHZLWKRXW DGYHUVH HIIHFWV 7/9V DUH GHWHUPLQHG IURP DQLPDO H[SHULPHQWDO GDWD PHGLFDO NQRZOHGJHDQGH[SHULHQFHHSLGHPLRORJ\VXUYH\VDQGHQYLURQPHQWDOVWXGLHV

7/9LVH[SRVXUHOLPLWIRUZRUNLQJDGXOWIRUDKRXUZHHNDQGIRUOLIHWLPHZLWKRXW DGYHUVH HIIHFWV 7/9V DUH GHWHUPLQHG IURP DQLPDO H[SHULPHQWDO GDWD PHGLFDO NQRZOHGJHDQGH[SHULHQFHHSLGHPLRORJ\VXUYH\VDQGHQYLURQPHQWDOVWXGLHV

3ROOXWDQW $FHWDOGHK\GH $FHWRQH $FUROLWULOH $PPRQLD $QLOLQH $UVHQLF $UVLQH %HQ]HQH %HU\OOLXP %URPLQH %XWDQRQH 0HWK\OHWK\ONHWRQH &DGPLXPGXVWVDOWV &DUEDU\O VHYLQ &DUERQGLR[LGH &DUERQGLVXOSKLGH &DUERQPRQR[LGH &DUERQ WHWUDFKORULGH &DUERQ\O FKORULGH SKRVJHQH &KORULQH &KORURIRUP &KURPDWHV &RSSHU &\DQRJHQ

SSP

PJP±

     ±     

     ±   ±  

± ±        ±  

          ± 

3ROOXWDQW $FHWDOGHK\GH $FHWRQH $FUROLWULOH $PPRQLD $QLOLQH $UVHQLF $UVLQH %HQ]HQH %HU\OOLXP %URPLQH %XWDQRQH 0HWK\OHWK\ONHWRQH &DGPLXPGXVWVDOWV &DUEDU\O VHYLQ &DUERQGLR[LGH &DUERQGLVXOSKLGH &DUERQPRQR[LGH &DUERQ WHWUDFKORULGH &DUERQ\O FKORULGH SKRVJHQH &KORULQH &KORURIRUP &KURPDWHV &RSSHU &\DQRJHQ &RQWG

SSP

PJP±

     ±     

     ±   ±  

± ±        ±  

          ±  &RQWG

$SSHQGL[HV  ''7 'LHOGULQ (WK\ODFHWDWH 'LHWK\OHWKHU (WK\OHQHGLFKORULGH )OXRULGH )RUPDOGHK\GH +HSWDFKORU +\GURJHQ FKORULGH +\GURJHQ F\DQLGH +\GURJHQ IOXRULGH +\GURJHQVHOHQLGH +\GURJHQVXOSKLGH /HDG IXPHV GXVWV 0HUFXU\ 0HUFXU\DONDOLV 0HUFXU\ RWKHU IRUPV PHWKR[\ HWKDQRO 1LFNHOFDUERQ\O 1LWULFDFLG 1LWULFR[LGH 1LWURJHQR[LGHV 2VPLXPWHWUR[LGH 2]RQH 3HUR[\DFHW\O QLWUDWH 3$1 3KHQRO 3\ULGLQH 6XOSKXUGLR[LGH 6XOSKXULFDFLG 7HWUDHWK\OOHDG 7ROXHQH 9LQ\O FKORULGH

 ±    ±  ±      ± ± ± ±            ± ±  

±    ±          ±       ±   ±       

$SSHQGL[HV  ''7 'LHOGULQ (WK\ODFHWDWH 'LHWK\OHWKHU (WK\OHQHGLFKORULGH )OXRULGH )RUPDOGHK\GH +HSWDFKORU +\GURJHQ FKORULGH +\GURJHQ F\DQLGH +\GURJHQ IOXRULGH +\GURJHQVHOHQLGH +\GURJHQVXOSKLGH /HDG IXPHV GXVWV 0HUFXU\ 0HUFXU\DONDOLV 0HUFXU\ RWKHU IRUPV PHWKR[\ HWKDQRO 1LFNHOFDUERQ\O 1LWULFDFLG 1LWULFR[LGH 1LWURJHQR[LGHV 2VPLXPWHWUR[LGH 2]RQH 3HUR[\DFHW\O QLWUDWH 3$1 3KHQRO 3\ULGLQH 6XOSKXUGLR[LGH 6XOSKXULFDFLG 7HWUDHWK\OOHDG 7ROXHQH 9LQ\O FKORULGH

 ±    ±  ±      ± ± ± ±            ± ±  

±    ±          ±       ±   ±       

'DWDRQ7/9SXEOLVKHGE\WKH$PHULFDQ&RQIHUHQFHRI*RYHUQPHQW,QGXVWULDO +\JLHQLVWV$&*,+ IRUZRUNHUVLQ,QGXVWULDOHQYLURQPHQWV³6HOHFWHG*HQHUDO ,QGXVWU\DQG+HDOWK6WDQGDUGV´86'HSWRI/DERXU2FFXSDWLRQDO+HDOWKDQG 6DIHW\$GPLQLVWUDWLRQ)HGHUDO5HJLVWHU±  1RWH7KHDERYHGDWDLQGLFDWHSHUPLVVLEOHH[SRVXUHRIDQLQGXVWULDOZRUNHU GXULQJKRXUWLPHZHLJKWHGDYHUDJHDVVXPLQJDKRXUZRUNZHHN7KXVWKH SHUPLVVLEOHH[SRVXUHWRWROXHQHLVSSPGXULQJKRXUSHULRG+RZHYHURQFH GXULQJDQKRXUVKLIWH[SRVXUHPD\H[FHHGWKHDOORZDEOHFHLOLQJFRQFHQWUDWLRQRI WROXHQH RI  SSP IRU D PD[LPXP SHULRG RI  PLQXWHV 7KLV PXVW EH FRPSHQVDWHGE\XQGHUH[SRVXUHLHOHVVWKDQSSPVRWKDWWKHKRXUWLPH ZHLJKWHGDYHUDJHLVOHVVWKDQSSP

'DWDRQ7/9SXEOLVKHGE\WKH$PHULFDQ&RQIHUHQFHRI*RYHUQPHQW,QGXVWULDO +\JLHQLVWV$&*,+ IRUZRUNHUVLQ,QGXVWULDOHQYLURQPHQWV³6HOHFWHG*HQHUDO ,QGXVWU\DQG+HDOWK6WDQGDUGV´86'HSWRI/DERXU2FFXSDWLRQDO+HDOWKDQG 6DIHW\$GPLQLVWUDWLRQ)HGHUDO5HJLVWHU±  1RWH7KHDERYHGDWDLQGLFDWHSHUPLVVLEOHH[SRVXUHRIDQLQGXVWULDOZRUNHU GXULQJKRXUWLPHZHLJKWHGDYHUDJHDVVXPLQJDKRXUZRUNZHHN7KXVWKH SHUPLVVLEOHH[SRVXUHWRWROXHQHLVSSPGXULQJKRXUSHULRG+RZHYHURQFH GXULQJDQKRXUVKLIWH[SRVXUHPD\H[FHHGWKHDOORZDEOHFHLOLQJFRQFHQWUDWLRQRI WROXHQH RI  SSP IRU D PD[LPXP SHULRG RI  PLQXWHV 7KLV PXVW EH FRPSHQVDWHGE\XQGHUH[SRVXUHLHOHVVWKDQSSPVRWKDWWKHKRXUWLPH ZHLJKWHGDYHUDJHLVOHVVWKDQSSP

$SSHQGL[HV 

$SSHQGL[HV 

''7 'LHOGULQ (WK\ODFHWDWH 'LHWK\OHWKHU (WK\OHQHGLFKORULGH )OXRULGH )RUPDOGHK\GH +HSWDFKORU +\GURJHQ FKORULGH +\GURJHQ F\DQLGH +\GURJHQ IOXRULGH +\GURJHQVHOHQLGH +\GURJHQVXOSKLGH /HDG IXPHV GXVWV 0HUFXU\ 0HUFXU\DONDOLV 0HUFXU\ RWKHU IRUPV PHWKR[\ HWKDQRO 1LFNHOFDUERQ\O 1LWULFDFLG 1LWULFR[LGH 1LWURJHQR[LGHV 2VPLXPWHWUR[LGH 2]RQH 3HUR[\DFHW\O QLWUDWH 3$1 3KHQRO 3\ULGLQH 6XOSKXUGLR[LGH 6XOSKXULFDFLG 7HWUDHWK\OOHDG 7ROXHQH 9LQ\O FKORULGH

 ±    ±  ±      ± ± ± ±            ± ±  

±    ±          ±       ±   ±       

'DWDRQ7/9SXEOLVKHGE\WKH$PHULFDQ&RQIHUHQFHRI*RYHUQPHQW,QGXVWULDO +\JLHQLVWV$&*,+ IRUZRUNHUVLQ,QGXVWULDOHQYLURQPHQWV³6HOHFWHG*HQHUDO ,QGXVWU\DQG+HDOWK6WDQGDUGV´86'HSWRI/DERXU2FFXSDWLRQDO+HDOWKDQG 6DIHW\$GPLQLVWUDWLRQ)HGHUDO5HJLVWHU±  1RWH7KHDERYHGDWDLQGLFDWHSHUPLVVLEOHH[SRVXUHRIDQLQGXVWULDOZRUNHU GXULQJKRXUWLPHZHLJKWHGDYHUDJHDVVXPLQJDKRXUZRUNZHHN7KXVWKH SHUPLVVLEOHH[SRVXUHWRWROXHQHLVSSPGXULQJKRXUSHULRG+RZHYHURQFH GXULQJDQKRXUVKLIWH[SRVXUHPD\H[FHHGWKHDOORZDEOHFHLOLQJFRQFHQWUDWLRQRI WROXHQH RI  SSP IRU D PD[LPXP SHULRG RI  PLQXWHV 7KLV PXVW EH FRPSHQVDWHGE\XQGHUH[SRVXUHLHOHVVWKDQSSPVRWKDWWKHKRXUWLPH ZHLJKWHGDYHUDJHLVOHVVWKDQSSP

''7 'LHOGULQ (WK\ODFHWDWH 'LHWK\OHWKHU (WK\OHQHGLFKORULGH )OXRULGH )RUPDOGHK\GH +HSWDFKORU +\GURJHQ FKORULGH +\GURJHQ F\DQLGH +\GURJHQ IOXRULGH +\GURJHQVHOHQLGH +\GURJHQVXOSKLGH /HDG IXPHV GXVWV 0HUFXU\ 0HUFXU\DONDOLV 0HUFXU\ RWKHU IRUPV PHWKR[\ HWKDQRO 1LFNHOFDUERQ\O 1LWULFDFLG 1LWULFR[LGH 1LWURJHQR[LGHV 2VPLXPWHWUR[LGH 2]RQH 3HUR[\DFHW\O QLWUDWH 3$1 3KHQRO 3\ULGLQH 6XOSKXUGLR[LGH 6XOSKXULFDFLG 7HWUDHWK\OOHDG 7ROXHQH 9LQ\O FKORULGH

 ±    ±  ±      ± ± ± ±            ± ±  

±    ±          ±       ±   ±       

'DWDRQ7/9SXEOLVKHGE\WKH$PHULFDQ&RQIHUHQFHRI*RYHUQPHQW,QGXVWULDO +\JLHQLVWV$&*,+ IRUZRUNHUVLQ,QGXVWULDOHQYLURQPHQWV³6HOHFWHG*HQHUDO ,QGXVWU\DQG+HDOWK6WDQGDUGV´86'HSWRI/DERXU2FFXSDWLRQDO+HDOWKDQG 6DIHW\$GPLQLVWUDWLRQ)HGHUDO5HJLVWHU±  1RWH7KHDERYHGDWDLQGLFDWHSHUPLVVLEOHH[SRVXUHRIDQLQGXVWULDOZRUNHU GXULQJKRXUWLPHZHLJKWHGDYHUDJHDVVXPLQJDKRXUZRUNZHHN7KXVWKH SHUPLVVLEOHH[SRVXUHWRWROXHQHLVSSPGXULQJKRXUSHULRG+RZHYHURQFH GXULQJDQKRXUVKLIWH[SRVXUHPD\H[FHHGWKHDOORZDEOHFHLOLQJFRQFHQWUDWLRQRI WROXHQH RI  SSP IRU D PD[LPXP SHULRG RI  PLQXWHV 7KLV PXVW EH FRPSHQVDWHGE\XQGHUH[SRVXUHLHOHVVWKDQSSPVRWKDWWKHKRXUWLPH ZHLJKWHGDYHUDJHLVOHVVWKDQSSP

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

$33(1',;

$33(1',;

8VHIXO&RQYHUVLRQ)DFWRUV

8VHIXO&RQYHUVLRQ)DFWRUV

/HQJWK

/HQJWK

LQFK IRRW \DUG PLOH PHWUH NLORPHWUH

FP P P NP IW LQ PLOHV

$UHD

LQFK IRRW \DUG PLOH PHWUH NLORPHWUH

FP P P NP IW LQ PLOHV

$UHD VTXDUHLQFK VTXDUHIRRW DFUH

VTXDUHPLOH

VTXDUHPHWUH KHFWDUH

FP P P IW VTPLOHV P KD DFUH NP KD IW DFUH VTPLOHV P

9ROXPH

VTXDUHLQFK VTXDUHIRRW DFUH

VTXDUHPLOH

VTXDUHPHWUH KHFWDUH

FP P P IW VTPLOHV P KD DFUH NP KD IW DFUH VTPLOHV P

9ROXPH

FXELFIRRW

FX\G

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

FXELFIRRW

FX\G

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

$33(1',;

$33(1',;

8VHIXO&RQYHUVLRQ)DFWRUV

8VHIXO&RQYHUVLRQ)DFWRUV

/HQJWK LQFK IRRW \DUG PLOH PHWUH NLORPHWUH

/HQJWK FP P P NP IW LQ PLOHV

$UHD

LQFK IRRW \DUG PLOH PHWUH NLORPHWUH

FP P P NP IW LQ PLOHV

$UHD VTXDUHLQFK VTXDUHIRRW DFUH

VTXDUHPLOH

VTXDUHPHWUH KHFWDUH

FP P P IW VTPLOHV P KD DFUH NP KD IW DFUH VTPLOHV P

9ROXPH FXELFIRRW

VTXDUHLQFK VTXDUHIRRW DFUH

VTXDUHPLOH

VTXDUHPHWUH KHFWDUH

FP P P IW VTPLOHV P KD DFUH NP KD IW DFUH VTPLOHV P

9ROXPH FX\G

FXELFIRRW

FX\G

$SSHQGL[HV 

JDOORQ86

FXELFPHWUH

JDO86 P / IW P / î±$FIW IW JDO86 / FP

JDOORQ86

FXELFPHWUH

/LQHDU 9HORFLW\ IRRWSHUVHFRQG PLOHSHUKRXU

PHWUHSHUVHFRQG

$SSHQGL[HV  JDO86 P / IW P / î±$FIW IW JDO86 / FP

/LQHDU 9HORFLW\ PSK IWV PV NPKU IWV PSK

IRRWSHUVHFRQG PLOHSHUKRXU

PHWUHSHUVHFRQG

0DVV

PSK IWV PV NPKU IWV PSK

0DVV SRXQGDYGS NLORJUDP WRQVKRUW

WRQPHWULF

NJ OEDYGS R]DYGS OEDYGS NJ WRQPHWULF NJ OEDYGS WRQVKRUW

SRXQGDYGS NLORJUDP WRQVKRUW

WRQPHWULF

(QHUJ\ %ULWLVK7KHUPDO8QLW

TXDGULOOLRQ%WX

NJ OEDYGS R]DYGS OEDYGS NJ WRQPHWULF NJ OEDYGS WRQVKRUW

(QHUJ\ IWOE FDO :KU EWX îîEDUUHOVJDO RIRLOHTXLYDOHQW îEDUUHOVJDO RIRLOHTXLYDOHQW

%ULWLVK7KHUPDO8QLW

TXDGULOOLRQ%WX

IWOE FDO :KU EWX îîEDUUHOVJDO RIRLOHTXLYDOHQW îEDUUHOVJDO RIRLOHTXLYDOHQW

$SSHQGL[HV 

JDOORQ86

FXELFPHWUH

JDO86 P / IW P / î±$FIW IW JDO86 / FP

/LQHDU 9HORFLW\ IRRWSHUVHFRQG PLOHSHUKRXU

PHWUHSHUVHFRQG

$SSHQGL[HV 

JDOORQ86

FXELFPHWUH

JDO86 P / IW P / î±$FIW IW JDO86 / FP

/LQHDU 9HORFLW\ PSK IWV PV NPKU IWV PSK

0DVV

IRRWSHUVHFRQG PLOHSHUKRXU

PHWUHSHUVHFRQG

PSK IWV PV NPKU IWV PSK

0DVV SRXQGDYGS NLORJUDP WRQVKRUW

WRQPHWULF

NJ OEDYGS R]DYGS OEDYGS NJ WRQPHWULF NJ OEDYGS WRQVKRUW

(QHUJ\ %ULWLVK7KHUPDO8QLW

TXDGULOOLRQ%WX

SRXQGDYGS NLORJUDP WRQVKRUW

WRQPHWULF

NJ OEDYGS R]DYGS OEDYGS NJ WRQPHWULF NJ OEDYGS WRQVKRUW

(QHUJ\ IWOE FDO :KU EWX îîEDUUHOVJDO RIRLOHTXLYDOHQW îEDUUHOVJDO RIRLOHTXLYDOHQW

%ULWLVK7KHUPDO8QLW

TXDGULOOLRQ%WX

IWOE FDO :KU EWX îîEDUUHOVJDO RIRLOHTXLYDOHQW îEDUUHOVJDO RIRLOHTXLYDOHQW

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

-RXOH

NLORZDWWKRXU

NLORFDORULH

îFXELFIHHWRIQDWXUDOJDVHTXLYDOHQW 1P î±%WX IWOE N%WX NFDO N-

3RZHU NLORZDWW

 KRUVHSRZHU TXDGULOOLRQ%WXSHU\HDU

NLORZDWWKRXU

NLORFDORULH

-V %WXKU KS : IWOEV PLOOLRQEDUUHOVRIRLOSHUGD\ 7:

îFXELFIHHWRIQDWXUDOJDVHTXLYDOHQW 1P î±%WX IWOE N%WX NFDO N-

3RZHU NLORZDWW

 KRUVHSRZHU TXDGULOOLRQ%WXSHU\HDU

-RXOH

NLORZDWWKRXU

NLORFDORULH

îFXELFIHHWRIQDWXUDOJDVHTXLYDOHQW 1P î±%WX IWOE N%WX NFDO N-

3RZHU

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

-RXOH

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

NLORZDWW

 KRUVHSRZHU TXDGULOOLRQ%WXSHU\HDU

-V %WXKU KS : IWOEV PLOOLRQEDUUHOVRIRLOSHUGD\ 7:

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

-RXOH

NLORZDWWKRXU

NLORFDORULH

îFXELFIHHWRIQDWXUDOJDVHTXLYDOHQW 1P î±%WX IWOE N%WX NFDO N-

3RZHU -V %WXKU KS : IWOEV PLOOLRQEDUUHOVRIRLOSHUGD\ 7:

NLORZDWW

 KRUVHSRZHU TXDGULOOLRQ%WXSHU\HDU

-V %WXKU KS : IWOEV PLOOLRQEDUUHOVRIRLOSHUGD\ 7:

 (  

 (  (

6KRUWWRQ

2XQFH DYGS

 (  (

 (  

 (

 (  (  (

0LFURJUDP

 (±  (±

 (  

 (

 (±  (±  (

.LORJUDP

 (±  (±

 (±  

 (

 (±  (±  (±

0HWULFWRQ

 (±  (±

 (  

 (

 (±  (±  (±

6KRUW WRQ

 (±  (

 (±  

 (±

 (±  (± ( (±

/RQJWRQ

 (  (

 (  

 (

 (  (±  (

*UDLQ

 (  (

 (  

 (

 (±  (±  (

2XQFH DYGS

 (±  (

 (  

 (

 (±  (±  (

/E DYGS

 (  (  (  (  (    (  (

0LFURJUDP

 (±  (±  (  (  (    (±  (±

.LORJUDP

 (±  (±  (±  (  (±    (±  (±

0HWULFWRQ

 (±  (±  (±  (  (    (±  (±

6KRUW WRQ

 (±  (± ( (±  (±  (±    (±  (

/RQJWRQ

 (  (±  (  (  (    (  (

*UDLQ

 (±  (±  (  (  (    (  (

2XQFH DYGS

 (±  (±  (  (  (    (±  (

/E DYGS

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

/E DYGS

 (  (  (  (  (    (  (

*UDP

$SSHQGL[HV 

/RQJWRQ *UDLQ 2XQFH DYGS

6KRUWWRQ

0HWULFWRQ

.LORJUDP

0LFURJUDP

*UDP

*LYHQ XQLWV

'HVLUHG XQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 0DVV

&RQYHUVLRQ)DFWRUV

$33(1'(;

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

/E DYGS

/RQJWRQ *UDLQ

 (

 (  (  (

*UDP

0HWULFWRQ

.LORJUDP

0LFURJUDP

*UDP

*LYHQ XQLWV

'HVLUHG XQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 0DVV

&RQYHUVLRQ)DFWRUV

$33(1'(;

 (    (  (

6KRUWWRQ

2XQFH DYGS

 (  (

 (  

 (

 (  (  (

0LFURJUDP

 (±  (±

 (  

 (

 (±  (±  (

.LORJUDP

 (±  (±

 (±  

 (

 (±  (±  (±

0HWULFWRQ

 (±  (±

 (  

 (

 (±  (±  (±

6KRUW WRQ

 (±  (

 (±  

 (±

 (±  (± ( (±

/RQJWRQ

 (  (

 (  

 (

 (  (±  (

*UDLQ

 (  (

 (  

 (

 (±  (±  (

2XQFH DYGS

 (±  (

 (  

 (

 (±  (±  (

/E DYGS

 (  (  (  (  (    (  (

*UDP

 (  (  (  (  (    (  (

0LFURJUDP

 (±  (±  (  (  (    (±  (±

.LORJUDP

 (±  (±  (±  (  (±    (±  (±

0HWULFWRQ

 (±  (±  (±  (  (    (±  (±

6KRUW WRQ

 (±  (± ( (±  (±  (±    (±  (

/RQJWRQ

 (  (±  (  (  (    (  (

*UDLQ

 (±  (±  (  (  (    (  (

2XQFH DYGS

 (±  (±  (  (  (    (±  (

/E DYGS

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

/E DYGS

/RQJWRQ *UDLQ 2XQFH DYGS

6KRUWWRQ

0HWULFWRQ

.LORJUDP

0LFURJUDP

*UDP

*LYHQ XQLWV

'HVLUHG XQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 0DVV

&RQYHUVLRQ)DFWRUV

$33(1'(;

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

/E DYGS

/RQJWRQ *UDLQ

 (

 (  (  (

*UDP

0HWULFWRQ

.LORJUDP

0LFURJUDP

*UDP

*LYHQ XQLWV

'HVLUHG XQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 0DVV

&RQYHUVLRQ)DFWRUV

$33(1'(;

$SSHQGL[HV  $SSHQGL[HV 

$SSHQGL[HV 

 (±

 (±

 (±

 (

 (

 (

 (

 (

0JSHU FXPHWUH

0LFURJUDP SHUFXP

0LFURJUDP SHUOLWUH

*UDLQSHUFXIW

2XQFH SHU FX IW

/ESHUFXIW

*UDPSHUFXIW

/ESHU FXPHWUH

 (

 (

 (

 (

 (

 (±

 (±

 (

 (

 (

 (±

 (

 (

 (

 (

 (

 (

 (

SHUFXP

 (

 (

 (

 (

 (

 (

 (±

 (

 (

SHUOLWUH

0LFURJUDP 0LFURJUDPWRQ

 (

 (

 (

 (

 (

 (±

 (±

 (±

 (±

FX IW

*UDLQSHU

 (

 (±

 (

 (

 (±

 (±

 (±

 (±

 (±

FX IW

2XQFH SHU

 (

 (±

 (

 (±

 (±

 (

 (±

 (±

 (±

FX IW

/ESHU

 (

 (

 (

 (

 (±

 (±

 (±

 (±

 (±

FX IW

*UDPSHU

 (

 (±

 (

 (

 (±

 (±

 (±

 (±

 (±

FXPHWUH

/ESHU

 (±

 (±

 (±

 (

 (

 (

 (

 (

0JSHU FXPHWUH

0LFURJUDP SHUFXP

0LFURJUDP SHUOLWUH

*UDLQSHUFXIW

2XQFH SHU FX IW

/ESHUFXIW

*UDPSHUFXIW

/ESHU FXPHWUH

 (

 (

 (

 (

 (

 (±

 (±

 (

 (

 (

 (±

 (

 (

 (

 (

 (

 (

 (

SHUFXP

 (

 (

 (

 (

 (

 (

 (±

 (

 (

SHUOLWUH

0LFURJUDP 0LFURJUDPWRQ

 (

 (

 (

 (

 (

 (±

 (±

 (±

 (±

FX IW

*UDLQSHU

 (

 (±

 (

 (

 (±

 (±

 (±

 (±

 (±

FX IW

2XQFH SHU

 (

 (±

 (

 (±

 (±

 (

 (±

 (±

 (±

FX IW

/ESHU

 (

 (

 (

 (

 (±

 (±

 (±

 (±

 (±

FX IW

*UDPSHU

 (

 (±

 (

 (

 (±

 (±

 (±

 (±

 (±

FXPHWUH

/ESHU

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

 (

FXPHWUH

*LYHQ XQLWV FXPHWUH

*UDPSHU FXPHWUH

0JSHU

*UDPSHU

'HVLUHGXQLWV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH $ &RQYHUVLRQ IDFWRUV 0DVV

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

 (

FXPHWUH

*LYHQ XQLWV FXPHWUH

*UDPSHU FXPHWUH

0JSHU

*UDPSHU

'HVLUHGXQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 0DVV

 (±  (±  (±  (  (  (  (  (

0JSHU FXPHWUH 0LFURJUDP SHUFXP 0LFURJUDP SHUOLWUH *UDLQSHUFXIW 2XQFH SHU FX IW /ESHUFXIW *UDPSHUFXIW /ESHU FXPHWUH

 (

 (

 (

 (

 (

 (±

 (±

 (

 (

 (

 (±

 (

 (

 (

 (

 (

 (

 (

SHUFXP

 (

 (

 (

 (

 (

 (

 (±

 (

 (

SHUOLWUH

0LFURJUDP 0LFURJUDPWRQ

 (

 (

 (

 (

 (

 (±

 (±

 (±

 (±

FX IW

*UDLQSHU

 (

 (±

 (

 (

 (±

 (±

 (±

 (±

 (±

FX IW

2XQFH SHU

 (

 (±

 (

 (±

 (±

 (

 (±

 (±

 (±

FX IW

/ESHU

 (

 (

 (

 (

 (±

 (±

 (±

 (±

 (±

FX IW

*UDPSHU

 (

 (±

 (

 (

 (±

 (±

 (±

 (±

 (±

FXPHWUH

/ESHU

*UDPSHU

 (

 (

 (

 (

 (

 (±

 (±

 (±

 (

 (

 (

 (

 (

 (

 (±

 (±

 (

 (

FXPHWUH

0JSHU

 (

 (±

 (

 (

 (

 (

 (

 (

 (

SHUFXP

 (

 (

 (

 (

 (

 (

 (±

 (

 (

SHUOLWUH

0LFURJUDP 0LFURJUDPWRQ

 (

 (

 (

 (

 (

 (±

 (±

 (±

 (±

FX IW

*UDLQSHU

 (

 (±

 (

 (

 (±

 (±

 (±

 (±

 (±

FX IW

2XQFH SHU

 (

 (±

 (

 (±

 (±

 (

 (±

 (±

 (±

FX IW

/ESHU

 (

 (

 (

 (

 (±

 (±

 (±

 (±

 (±

FX IW

*UDPSHU

 (

 (±

 (

 (

 (±

 (±

 (±

 (±

 (±

FXPHWUH

/ESHU

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

/ESHU FXPHWUH

*UDPSHUFXIW

/ESHUFXIW

2XQFH SHU FX IW

*UDLQSHUFXIW

0LFURJUDP SHUOLWUH

0LFURJUDP SHUFXP

0JSHU FXPHWUH

*UDPSHU FXPHWUH

*LYHQ XQLWV FXPHWUH

'HVLUHGXQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 0DVV

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

 (

FXPHWUH

*LYHQ XQLWV FXPHWUH *UDPSHU FXPHWUH

0JSHU

*UDPSHU

'HVLUHGXQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 0DVV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV  3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 (

 (

 (

 (

 (±

 (±

 (±

 (

.LORZDWW LQW

0HJDZDWW LQW

&DOLQW SHU VHF

%WXSHUPLQ

%WXSHUKU

-RXOHVDEV SHU VHF

:DWW DEV

(OHFW KRUVHSRZHU

 (±

 (±

 (±

 (±

 (±

 (±

 (

 (

 (

LQW

.LORZDWW

 (±

 (±

 (±

 (±

 (±

 (±

 (

 (±

 (±

LQW

0HJDZDWW

 (

 (±

 (±

 (±

 (

 (

 (

 (

 (

SHU VHF

&DOLQW

 (

 (±

 (±

 (±

 (

 (±

 (

 (

 (±

SHUPLQ

%WX

 (

 (±

 (

 (

 (±

 (

 (

 (

 (±

SHU KU

%WX

 (

 (

 (

 (±

 (

 (

 (

 (

 (±

SHU VHF

-RXOHVDEV

 (

 (

 (

 (±

 (±

 (

 (

 (

 (±

:DWW DV

 (

 (±

 (±

 (±

 (±

 (

 (

 (

 (±

KRUVHSRZHU

(OHFW

 (

 (

 (

 (

 (±

 (±

 (±

 (

.LORZDWW LQW

0HJDZDWW LQW

&DOLQW SHU VHF

%WXSHUPLQ

%WXSHUKU

-RXOHVDEV SHU VHF

:DWW DEV

(OHFW KRUVHSRZHU

 (±

 (±

 (±

 (±

 (±

 (±

 (

 (

 (

LQW

.LORZDWW

 (±

 (±

 (±

 (±

 (±

 (±

 (

 (±

 (±

LQW

0HJDZDWW

 (

 (±

 (±

 (±

 (

 (

 (

 (

 (

SHU VHF

&DOLQW

 (

 (±

 (±

 (±

 (

 (±

 (

 (

 (±

SHUPLQ

%WX

 (

 (±

 (

 (

 (±

 (

 (

 (

 (±

SHU KU

%WX

 (

 (

 (

 (±

 (

 (

 (

 (

 (±

SHU VHF

-RXOHVDEV

 (

 (

 (

 (±

 (±

 (

 (

 (

 (±

:DWW DV

 (

 (±

 (±

 (±

 (±

 (

 (

 (

 (±

KRUVHSRZHU

(OHFW

$SSHQGL[HV 

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

 (

LQW

:DWW

:DWWLQW

*LYHQ XQLWV

'HVLUHGXQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 3RZHU

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

 (

LQW

:DWW

:DWWLQW

*LYHQ XQLWV

'HVLUHGXQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 3RZHU

 (  (  (  (  (±  (±  (±  (

.LORZDWW LQW 0HJDZDWW LQW &DOLQW SHU VHF %WXSHUPLQ %WXSHUKU -RXOHVDEV SHU VHF :DWW DEV (OHFW KRUVHSRZHU

 (±

 (±

 (±

 (±

 (±

 (±

 (

 (

 (

LQW

.LORZDWW

 (±

 (±

 (±

 (±

 (±

 (±

 (

 (±

 (±

LQW

0HJDZDWW

 (

 (±

 (±

 (±

 (

 (

 (

 (

 (

SHU VHF

&DOLQW

 (

 (±

 (±

 (±

 (

 (±

 (

 (

 (±

SHUPLQ

%WX

 (

 (±

 (

 (

 (±

 (

 (

 (

 (±

SHU KU

%WX

 (

 (

 (

 (±

 (

 (

 (

 (

 (±

SHU VHF

-RXOHVDEV

 (

 (

 (

 (±

 (±

 (

 (

 (

 (±

:DWW DV

 (

 (±

 (±

 (±

 (±

 (

 (

 (

 (±

KRUVHSRZHU

(OHFW

 (  (  (  (  (±  (±  (±  (

.LORZDWW LQW 0HJDZDWW LQW &DOLQW SHU VHF %WXSHUPLQ %WXSHUKU -RXOHVDEV SHU VHF :DWW DEV (OHFW KRUVHSRZHU

 (±

 (±

 (±

 (±

 (±

 (±

 (

 (

 (

LQW

.LORZDWW

 (±

 (±

 (±

 (±

 (±

 (±

 (

 (±

 (±

LQW

0HJDZDWW

 (

 (±

 (±

 (±

 (

 (

 (

 (

 (

SHU VHF

&DOLQW

 (

 (±

 (±

 (±

 (

 (±

 (

 (

 (±

SHUPLQ

%WX

 (

 (±

 (

 (

 (±

 (

 (

 (

 (±

SHU KU

%WX

 (

 (

 (

 (±

 (

 (

 (

 (

 (±

SHU VHF

-RXOHVDEV

 (

 (

 (

 (±

 (±

 (

 (

 (

 (±

:DWW DV

 (

 (±

 (±

 (±

 (±

 (

 (

 (

 (±

KRUVHSRZHU

(OHFW

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

 (

LQW

:DWW

:DWWLQW

*LYHQ XQLWV

'HVLUHGXQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 3RZHU

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

 (

LQW

:DWW

:DWWLQW

*LYHQ XQLWV

'HVLUHGXQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 3RZHU

$SSHQGL[HV  $SSHQGL[HV 

$SSHQGL[HV 

 î±

 î±

 î±



 î±

 î±

 î

 î

 î±

JPLQ

NJKU

NJGD\

OEPLQ

OEKU

OEGD\

WRQVKU

WRQVGD\

WRQV\U



 î

 î

 î±

 î±

 î

 î±







JPLQ

 î±

 î

 î

 î±

 î±

 î

 î±



 î±



NJKU



 î

 î

 î±

 î±

 î



 î



 î

NJGD\

 î±



 î

 î±

 î±



 î±

 î±

 î±

 î±

OEPLQ

 î±

 î

 î

 î±

 î±



 î±



 î±



OEKU



 î

 î





 î



 î



 î

OEGD\

 î±

 î±



 î±

 î±

 î±

 î±

 î±

 î±

 î

WRQVKU

 î±





 î±

 î±

 î±

 î±

 î±

 î±

 î±

WRQVGD\





 î

 î±



 î

 î±



 î±

 î

WRQV\U

 î±

 î±

 î±



 î±

 î±

 î

 î

 î±

JPLQ

NJKU

NJGD\

OEPLQ

OEKU

OEGD\

WRQVKU

WRQVGD\

WRQV\U



 î

 î

 î±

 î±

 î

 î±







JPLQ

 î±

 î

 î

 î±

 î±

 î

 î±



 î±



NJKU



 î

 î

 î±

 î±

 î



 î



 î

NJGD\

 î±



 î

 î±

 î±



 î±

 î±

 î±

 î±

OEPLQ

 î±

 î

 î

 î±

 î±



 î±



 î±



OEKU



 î

 î





 î



 î



 î

OEGD\

 î±

 î±



 î±

 î±

 î±

 î±

 î±

 î±

 î

WRQVKU

 î±





 î±

 î±

 î±

 î±

 î±

 î±

 î±

WRQVGD\





 î

 î±



 î

 î±



 î±

 î

WRQV\U

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3



JVHF

JVHF

*LYHQ XQLWV

'HVLUHGXQLWV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH $ &RQYHUVLRQ IDFWRUV 3RZHU

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3



JVHF

JVHF

*LYHQ XQLWV

'HVLUHGXQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 3RZHU

 î±  î±  î±   î±  î±  î  î  î±

JPLQ NJKU NJGD\ OEPLQ OEKU OEGD\ WRQVKU WRQVGD\ WRQV\U



 î

 î

 î±

 î±

 î

 î±







JPLQ

 î±

 î

 î

 î±

 î±

 î

 î±



 î±



NJKU



 î

 î

 î±

 î±

 î



 î



 î

NJGD\

 î±



 î

 î±

 î±



 î±

 î±

 î±

 î±

OEPLQ

 î±

 î

 î

 î±

 î±



 î±



 î±



OEKU



 î

 î





 î



 î



 î

OEGD\

 î±

 î±



 î±

 î±

 î±

 î±

 î±

 î±

 î

WRQVKU

 î±





 î±

 î±

 î±

 î±

 î±

 î±

 î±

WRQVGD\





 î

 î±



 î

 î±



 î±

 î

WRQV\U

 î±

 î

 î

 î±

 î±



 î±

 î±

 î±



JVHF



 î

 î

 î±

 î±

 î

 î±







JPLQ

 î±

 î

 î

 î±

 î±

 î

 î±



 î±



NJKU



 î

 î

 î±

 î±

 î



 î



 î

NJGD\

 î±



 î

 î±

 î±



 î±

 î±

 î±

 î±

OEPLQ

 î±

 î

 î

 î±

 î±



 î±



 î±



OEKU



 î

 î





 î



 î



 î

OEGD\

 î±

 î±



 î±

 î±

 î±

 î±

 î±

 î±

 î

WRQVKU

 î±





 î±

 î±

 î±

 î±

 î±

 î±

 î±

WRQVGD\





 î

 î±



 î

 î±



 î±

 î

WRQV\U

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

WRQV\U

WRQVGD\

WRQVKU

OEGD\

OEKU

OEPLQ

NJGD\

NJKU

JPLQ

JVHF

*LYHQ XQLWV

'HVLUHGXQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 3RZHU

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3



JVHF

JVHF

*LYHQ XQLWV

'HVLUHGXQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 3RZHU

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV  3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

î

î

î



î

î













î±





î±



î±



î±



î±



î±



î±



³$WPRVSKHUHV´

î

î

î

î

î







î±





î±



î±



1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 6RXUFH+DQGERRNRI$LU3ROOXWLRQ$3

î









î±



î±



î±



î±



³$WPRVSKHUHV´

$SSHQGL[HV 









î



³$WPRVSKHUHV´

î





î

î





LQ



OEI









î±



IW 





OEI



î±



î±



î±



î±



LQ

OEI

î±







î±



î±



î±



î±



IW 

OEI

FP

JI



î±







IW 





SRXQGDOV



î±



î±



FP

JI

î±







OEP

î±



î±



IW 

SRXQGDOV

IWVHF 

î±







FP

G\QHV



IWVHF 

OEP

î±



FP

FPVHF 



G\QHV

JP

FPVHF 

JP

*LYHQ XQLWV

'HVLUHGXQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 3RZHU

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 6RXUFH+DQGERRNRI$LU3ROOXWLRQ$3

î









î



³$WPRVSKHUHV´

î





î

î





LQ



OEI









î±



IW 





OEI



î±



î±



î±



î±



LQ

OEI

î±







î±



î±



î±



î±



IW 

OEI

FP

JI



î±







IW 





SRXQGDOV



î±



î±



FP

JI

î±







OEP

î±



î±



IW 

SRXQGDOV

IWVHF 

î±







FP

G\QHV



IWVHF 

OEP

î±



FP

FPVHF 



G\QHV

JP

FPVHF 

JP

*LYHQ XQLWV

'HVLUHGXQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 3RZHU

 î

 î

î



î



î



î



î













î±





î±



î±



î±



î±



î±



î±



³$WPRVSKHUHV´

î



î



î



î



î



î



î













î±





î±



î±



î±



î±



î±



î±



³$WPRVSKHUHV´

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 6RXUFH+DQGERRNRI$LU3ROOXWLRQ$3

³$WPRVSKHUHV´

î



 î

î



 LQ



OEI









î±

 IW 





OEI



î±



î±



î±



î±



LQ

OEI

î±







î±



î±



î±



î±



IW 

OEI

FP

JI



î±





 IW 





SRXQGDOV



î±



î±



FP

JI

î±







OEP

î±



î±



IW 

SRXQGDOV

IWVHF 

î±





 FP

G\QHV



IWVHF 

OEP

î±



FP

FPVHF  

G\QHV

JP

FPVHF 

JP

*LYHQ XQLWV

'HVLUHGXQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 3RZHU

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 6RXUFH+DQGERRNRI$LU3ROOXWLRQ$3

³$WPRVSKHUHV´

î





î

î





LQ



OEI







 î±



IW 





OEI



î±



î±



î±



î±



LQ

OEI

î±







î±



î±



î±



î±



IW 

OEI

FP

JI

 î±







IW 





SRXQGDOV



î±



î±



FP

JI

î±







OEP

î±



î±



IW 

SRXQGDOV

IWVHF 

î±







FP

G\QHV



IWVHF 

OEP

î±



FP

FPVHF  

G\QHV

JP

FPVHF 

JP

*LYHQ XQLWV

'HVLUHGXQLWV

7DEOH $ &RQYHUVLRQ IDFWRUV 3RZHU

$SSHQGL[HV  $SSHQGL[HV 

$SSHQGL[HV 

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH $ &RQYHUVLRQ IDFWRUV 3UHVVXUH KHDG

7DEOH $ &RQYHUVLRQ IDFWRUV 3UHVVXUH KHDG

'HVLUHGXQLWV

%DU

0LOOLEDU

,Q+J

&P+J

0P+J

,Q+2

³$WPRVSKHUHV´

'HVLUHGXQLWV

*LYHQXQLWV %DU

%DU

0LOOLEDU

,Q+J

&P+J

0P+J

,Q+2

³$WPRVSKHUHV´













 î±

*LYHQXQLWV 











 î±

%DU

0LOOLEDU

î±



 î±

 î±

 î±

 î±

 î±

0LOOLEDU

î±



 î±

 î±

 î±

 î±

 î±

,Q+J

 î±











 î±

,Q+J

 î±











 î±

&P+J

 î±



 î±







 î±

&P+J

 î±



 î±







 î±

0P+J

 î±



 î± î±



 î

 î±

0P+J

 î±



 î± î±



 î

 î±

,Q+2

 î±



 î±

 î±





 î±

,Q+2

 î±



 î±

 î±





 î±

³$WPRVSKHUHV´



 î











³$WPRVSKHUHV´



 î











1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRU RSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRU RSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

7DEOH $ &RQYHUVLRQ IDFWRUV 3UHVVXUH KHDG

7DEOH $ &RQYHUVLRQ IDFWRUV 3UHVVXUH KHDG

'HVLUHGXQLWV

&XELF \DUG

&XELF IRRW

&XELF\DUG





&XELFIRRW

 î±





 î±

 î±

&XELFLQFK

 î±

 î±



 î±

 î±

&XELFPHWUH







*LYHQXQLWV

&XELF LQFK

&XELF PHWUH

&XELF &XELF GHFLPHWUH FHQWLPHWUH

  î

  î

 î



/LWUH

'HVLUHGXQLWV *LYHQXQLWV

&XELF \DUG

&XELF IRRW

&XELF LQFK

&XELF PHWUH

&XELF &XELF GHFLPHWUH FHQWLPHWUH





&XELF\DUG









&XELFIRRW

 î±





 î±

 î±

  î±

&XELFLQFK

 î±

 î±



 î±

 î±

&XELFPHWUH







î



&XELFGHFLPHWUH

 î±

 î±







&XELFFHQWLPHWUH

 î±

 î±

 î±

î±

î±

 î±



/LWUH

 î±

 î±



 î±







  î

  î

 î



/LWUH









  î± î



&XELFGHFLPHWUH

 î±

 î±







&XELFFHQWLPHWUH

 î±

 î±

 î±

î±

î±

 î±



/LWUH

 î±

 î±



 î±







1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKH IDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 6RXUFH+DQGERRNRI$LU3ROOXWLRQ$3

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKH IDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 6RXUFH+DQGERRNRI$LU3ROOXWLRQ$3

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

7DEOH $ &RQYHUVLRQ IDFWRUV 3UHVVXUH KHDG

7DEOH $ &RQYHUVLRQ IDFWRUV 3UHVVXUH KHDG

'HVLUHGXQLWV

%DU

0LOOLEDU

,Q+J

&P+J

0P+J

,Q+2

³$WPRVSKHUHV´

'HVLUHGXQLWV

*LYHQXQLWV %DU

%DU

0LOOLEDU

,Q+J

&P+J

0P+J

,Q+2

³$WPRVSKHUHV´













 î±

*LYHQXQLWV 











 î±

%DU

0LOOLEDU

î±



 î±

 î±

 î±

 î±

 î±

0LOOLEDU

î±



 î±

 î±

 î±

 î±

 î±

,Q+J

 î±











 î±

,Q+J

 î±











 î±

&P+J

 î±



 î±







 î±

&P+J

 î±



 î±







 î±

0P+J

 î±



 î± î±



 î

 î±

0P+J

 î±



 î± î±



 î

 î±

,Q+2

 î±



 î±

 î±





 î±

,Q+2

 î±



 î±

 î±





 î±

³$WPRVSKHUHV´



 î











³$WPRVSKHUHV´



 î











1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRU RSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRU RSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW1RWHWKDW(±;;PHDQVWRWKH±;;SRZHU 6RXUFH:RUNERRNRI$WPRVSKHULF'LVSHUVLRQ&RHIILFLHQWV$3

7DEOH $ &RQYHUVLRQ IDFWRUV 3UHVVXUH KHDG

7DEOH $ &RQYHUVLRQ IDFWRUV 3UHVVXUH KHDG

'HVLUHGXQLWV

&XELF \DUG

&XELF IRRW

&XELF\DUG





&XELFIRRW

 î±





 î±

 î±

&XELFLQFK

 î±

 î±



 î±

 î±

&XELFPHWUH







*LYHQXQLWV

&XELF LQFK

&XELF PHWUH

  î

  î

&XELF &XELF GHFLPHWUH FHQWLPHWUH  î



/LWUH

'HVLUHGXQLWV *LYHQXQLWV

&XELF \DUG

&XELF IRRW

&XELF LQFK

&XELF PHWUH





&XELF\DUG









&XELFIRRW

 î±





 î±

 î±

  î±

&XELFLQFK

 î±

 î±



 î±

 î±

&XELFPHWUH







î



&XELFGHFLPHWUH

 î±

 î±







&XELFFHQWLPHWUH

 î±

 î±

 î±

î±

î±

 î±



/LWUH

 î±

 î±



 î±







1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKH IDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 6RXUFH+DQGERRNRI$LU3ROOXWLRQ$3

  î

&XELF &XELF GHFLPHWUH FHQWLPHWUH

  î

 î



/LWUH









  î± î



&XELFGHFLPHWUH

 î±

 î±







&XELFFHQWLPHWUH

 î±

 î±

 î±

î±

î±

 î±



/LWUH

 î±

 î±



 î±







1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKH IDFWRURSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 6RXUFH+DQGERRNRI$LU3ROOXWLRQ$3

$SSHQGL[HV  7DEOH $ &RQYHUVLRQ IDFWRUV 9HORFLW\ 'HVLUHGXQLWV

PVHF

IWVHF

$SSHQGL[HV  7DEOH $ &RQYHUVLRQ IDFWRUV 9HORFLW\

IWPLQ

NPKU

PLKU

NQRWV

PLGD\

'HVLUHGXQLWV

*LYHQXQLWV

PVHF

IWVHF

IWPLQ

NPKU

PLKU

NQRWV

PLGD\

*LYHQXQLWV

PVHF





 î







 î

PVHF





 î







 î

IWVHF

 î±







 î±

 î±

 î

IWVHF

 î±







 î±

 î±

 î

IWPLQ

 î±

 î±



 î±

 î±

 î±

 î±

IWPLQ

 î±

 î±



 î±

 î±

 î±

 î±

NPKU

 î±

 î±

 î



 î±

 î±

 î

NPKU

 î±

 î±

 î



 î±

 î±

 î

PLKU

 î±









 î±



PLKU

 î±









 î±



NQRWV

 î±



 î







 î

NQRWV

 î±



 î







 î

PLGD\

 î±

 î±



 î±

 î±

 î±



PLGD\

 î±

 î±



 î±

 î±

 î±



1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRU RSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 6RXUFH+DQGERRNRI$LU3ROOXWLRQ$3

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRU RSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 6RXUFH+DQGERRNRI$LU3ROOXWLRQ$3

$SSHQGL[HV 

$SSHQGL[HV 

7DEOH $ &RQYHUVLRQ IDFWRUV 9HORFLW\ 'HVLUHGXQLWV

PVHF

IWVHF

7DEOH $ &RQYHUVLRQ IDFWRUV 9HORFLW\ IWPLQ

NPKU

PLKU

NQRWV

PLGD\

'HVLUHGXQLWV

*LYHQXQLWV

PVHF

IWVHF

IWPLQ

NPKU

PLKU

NQRWV

PLGD\

*LYHQXQLWV

PVHF





 î







 î

PVHF





 î







 î

IWVHF

 î±







 î±

 î±

 î

IWVHF

 î±







 î±

 î±

 î

IWPLQ

 î±

 î±



 î±

 î±

 î±

 î±

IWPLQ

 î±

 î±



 î±

 î±

 î±

 î±

NPKU

 î±

 î±

 î



 î±

 î±

 î

NPKU

 î±

 î±

 î



 î±

 î±

 î

PLKU

 î±









 î±



PLKU

 î±









 î±



NQRWV

 î±



 î







 î

NQRWV

 î±



 î







 î

PLGD\

 î±

 î±



 î±

 î±

 î±



PLGD\

 î±

 î±



 î±

 î±

 î±



1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRU RSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 6RXUFH+DQGERRNRI$LU3ROOXWLRQ$3

1RWH7RFRQYHUWDYDOXHIURPDJLYHQXQLWWRDGHVLUHGXQLWPXOWLSO\WKHJLYHQYDOXHE\WKHIDFWRU RSSRVLWHWKHJLYHQXQLWVDQGEHQHDWKWKHGHVLUHGXQLW 6RXUFH+DQGERRNRI$LU3ROOXWLRQ$3

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

$33(1',;

$33(1',;

1DWLRQDO$LU4XDOLW\0RQLWRULQJ 3URJUDPPH1$03

1DWLRQDO$LU4XDOLW\0RQLWRULQJ 3URJUDPPH1$03

&HQWUDO3ROOXWLRQ&RQWURO%RDUGLVH[HFXWLQJDQDWLRQZLGHSURJUDPPHRIDPELHQW DLU TXDOLW\ PRQLWRULQJ NQRZQ DV 1DWLRQDO $LU 4XDOLW\ 0RQLWRULQJ 3URJUDPPH 1$03 7KHQHWZRUNFRQVLVWVRIWKUHHKXQGUHGDQGWKLUW\WZR RSHUDWLQJ VWDWLRQVFRYHULQJRQHKXQGUHGDQGWZHQW\RQH FLWLHVWRZQVLQWZHQW\ILYH  VWDWHVDQGIRXU 8QLRQ7HUULWRULHVRIWKHFRXQWU\

&HQWUDO3ROOXWLRQ&RQWURO%RDUGLVH[HFXWLQJDQDWLRQZLGHSURJUDPPHRIDPELHQW DLU TXDOLW\ PRQLWRULQJ NQRZQ DV 1DWLRQDO $LU 4XDOLW\ 0RQLWRULQJ 3URJUDPPH 1$03 7KHQHWZRUNFRQVLVWVRIWKUHHKXQGUHGDQGWKLUW\WZR RSHUDWLQJ VWDWLRQVFRYHULQJRQHKXQGUHGDQGWZHQW\RQH FLWLHVWRZQVLQWZHQW\ILYH  VWDWHVDQGIRXU 8QLRQ7HUULWRULHVRIWKHFRXQWU\

7KHREMHFWLYHVRIWKH1$03DUH

7KHREMHFWLYHVRIWKH1$03DUH

‡ 7RGHWHUPLQHVWDWXVDQGWUHQGVRIDPELHQWDLUTXDOLW\ ‡ 7R DVFHUWDLQ ZKHWKHU WKH SUHVFULEHG DPELHQW DLU TXDOLW\ VWDQGDUGV DUH YLRODWHG ‡ 7RLGHQWLI\QRQDWWDLQPHQWFLWLHV ‡ 7R REWDLQ WKH NQRZOHGJH DQG XQGHUVWDQGLQJ QHFHVVDU\ IRU GHYHORSLQJ SUHYHQWLYHDQGFRUUHFWLYHPHDVXUHVDQG ‡ 7RXQGHUVWDQGWKHQDWXUDOFOHDQVLQJSURFHVVXQGHUJRLQJLQWKHHQYLURQPHQW WKURXJK SROOXWLRQ GLOXWLRQ GLVSHUVLRQ ZLQG EDVHG PRYHPHQW GU\ GHSRVLWLRQ SUHFLSLWDWLRQ DQG FKHPLFDO WUDQVIRUPDWLRQ RI SROOXWDQWV JHQHUDWHG

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

‡ 7RGHWHUPLQHVWDWXVDQGWUHQGVRIDPELHQWDLUTXDOLW\ ‡ 7R DVFHUWDLQ ZKHWKHU WKH SUHVFULEHG DPELHQW DLU TXDOLW\ VWDQGDUGV DUH YLRODWHG ‡ 7RLGHQWLI\QRQDWWDLQPHQWFLWLHV ‡ 7R REWDLQ WKH NQRZOHGJH DQG XQGHUVWDQGLQJ QHFHVVDU\ IRU GHYHORSLQJ SUHYHQWLYHDQGFRUUHFWLYHPHDVXUHVDQG ‡ 7RXQGHUVWDQGWKHQDWXUDOFOHDQVLQJSURFHVVXQGHUJRLQJLQWKHHQYLURQPHQW WKURXJK SROOXWLRQ GLOXWLRQ GLVSHUVLRQ ZLQG EDVHG PRYHPHQW GU\ GHSRVLWLRQ SUHFLSLWDWLRQ DQG FKHPLFDO WUDQVIRUPDWLRQ RI SROOXWDQWV JHQHUDWHG

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

$33(1',;

$33(1',;

1DWLRQDO$LU4XDOLW\0RQLWRULQJ 3URJUDPPH1$03

1DWLRQDO$LU4XDOLW\0RQLWRULQJ 3URJUDPPH1$03

&HQWUDO3ROOXWLRQ&RQWURO%RDUGLVH[HFXWLQJDQDWLRQZLGHSURJUDPPHRIDPELHQW DLU TXDOLW\ PRQLWRULQJ NQRZQ DV 1DWLRQDO $LU 4XDOLW\ 0RQLWRULQJ 3URJUDPPH 1$03 7KHQHWZRUNFRQVLVWVRIWKUHHKXQGUHGDQGWKLUW\WZR RSHUDWLQJ VWDWLRQVFRYHULQJRQHKXQGUHGDQGWZHQW\RQH FLWLHVWRZQVLQWZHQW\ILYH  VWDWHVDQGIRXU 8QLRQ7HUULWRULHVRIWKHFRXQWU\

&HQWUDO3ROOXWLRQ&RQWURO%RDUGLVH[HFXWLQJDQDWLRQZLGHSURJUDPPHRIDPELHQW DLU TXDOLW\ PRQLWRULQJ NQRZQ DV 1DWLRQDO $LU 4XDOLW\ 0RQLWRULQJ 3URJUDPPH 1$03 7KHQHWZRUNFRQVLVWVRIWKUHHKXQGUHGDQGWKLUW\WZR RSHUDWLQJ VWDWLRQVFRYHULQJRQHKXQGUHGDQGWZHQW\RQH FLWLHVWRZQVLQWZHQW\ILYH  VWDWHVDQGIRXU 8QLRQ7HUULWRULHVRIWKHFRXQWU\

7KHREMHFWLYHVRIWKH1$03DUH

7KHREMHFWLYHVRIWKH1$03DUH

‡ 7RGHWHUPLQHVWDWXVDQGWUHQGVRIDPELHQWDLUTXDOLW\ ‡ 7R DVFHUWDLQ ZKHWKHU WKH SUHVFULEHG DPELHQW DLU TXDOLW\ VWDQGDUGV DUH YLRODWHG ‡ 7RLGHQWLI\QRQDWWDLQPHQWFLWLHV ‡ 7R REWDLQ WKH NQRZOHGJH DQG XQGHUVWDQGLQJ QHFHVVDU\ IRU GHYHORSLQJ SUHYHQWLYHDQGFRUUHFWLYHPHDVXUHVDQG ‡ 7RXQGHUVWDQGWKHQDWXUDOFOHDQVLQJSURFHVVXQGHUJRLQJLQWKHHQYLURQPHQW WKURXJK SROOXWLRQ GLOXWLRQ GLVSHUVLRQ ZLQG EDVHG PRYHPHQW GU\ GHSRVLWLRQ SUHFLSLWDWLRQ DQG FKHPLFDO WUDQVIRUPDWLRQ RI SROOXWDQWV JHQHUDWHG

‡ 7RGHWHUPLQHVWDWXVDQGWUHQGVRIDPELHQWDLUTXDOLW\ ‡ 7R DVFHUWDLQ ZKHWKHU WKH SUHVFULEHG DPELHQW DLU TXDOLW\ VWDQGDUGV DUH YLRODWHG ‡ 7RLGHQWLI\QRQDWWDLQPHQWFLWLHV ‡ 7R REWDLQ WKH NQRZOHGJH DQG XQGHUVWDQGLQJ QHFHVVDU\ IRU GHYHORSLQJ SUHYHQWLYHDQGFRUUHFWLYHPHDVXUHVDQG ‡ 7RXQGHUVWDQGWKHQDWXUDOFOHDQVLQJSURFHVVXQGHUJRLQJLQWKHHQYLURQPHQW WKURXJK SROOXWLRQ GLOXWLRQ GLVSHUVLRQ ZLQG EDVHG PRYHPHQW GU\ GHSRVLWLRQ SUHFLSLWDWLRQ DQG FKHPLFDO WUDQVIRUPDWLRQ RI SROOXWDQWV JHQHUDWHG

$SSHQGL[HV  1DWLRQDO$PELHQW$LU4XDOLW\6WDQGDUGV 3ROOXWDQWV

1DWLRQDO$PELHQW$LU4XDOLW\6WDQGDUGV

&RQFHQWUDWLRQLQDPELHQWDLU

0HWKRG

3ROOXWDQWV

$QQXDO $YHUDJH

—JP

—JP

—JP

 ,PSURYHG:HVW DQG*HDNH 0HWKRG  8OWUDYLROHW )OXRUHVFHQFH

6XOSKXUGLR[LGH62

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

—JP

—JP

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

—JP

—JP

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

—JP

—JP

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

/HDG3E

 KRXUV

—JP

—JP —JP  $660HWKRGDIWHU VDPSOLQJXVLQJ (30RU HTXLYDOHQW ILOWHU SDSHU —JP —JP

$PPRQLD

$QQXDO  KRXUV

PJP PJP

PJP PJP

PJP PJP

&DUERQ

 KRXUV

PJP

PJP

PJP

PJP PJP

PJP

6XOSKXUGLR[LGH62

2[LGHV RI 1LWURJHQDV12

6XVSHQGHG 3DUWLFXODWH0DWWHU 630

5HVSLUDEOH 3DUWLFXODWH0DWWHU 530 VL]HOHVV WKDQPLFURQV /HDG3E

7LPH

$SSHQGL[HV 

KRXU

 -DFRE +RFKKHLVHU 0RGLILHG1D $UVHQLWH  0HWKRG  *DV3KDVH &KHPLOXPLQHV FHQFH  +LJK9ROXPH 6DPSOLQJ $YHUDJHIORZ UDWHQRWOHVVWKDQ PPLQXWH   5HVSLUDEOH SDUWLFXODWHPDWWHU VDPSOHU

 1RQ'LVSHUVLYH ,QIUD5HG1',5 6SHFWURVFRS\

&RQFHQWUDWLRQLQDPELHQWDLU

0HWKRG

$QQXDO $YHUDJH

—JP

—JP

—JP

 ,PSURYHG:HVW DQG*HDNH 0HWKRG  8OWUDYLROHW )OXRUHVFHQFH

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

—JP

—JP

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

—JP

—JP

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

—JP

—JP

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

 KRXUV

—JP

—JP —JP  $660HWKRGDIWHU VDPSOLQJXVLQJ (30RU HTXLYDOHQW ILOWHU SDSHU —JP —JP

$PPRQLD

$QQXDO  KRXUV

PJP PJP

PJP PJP

PJP PJP

&DUERQ

 KRXUV

PJP

PJP

PJP

PJP PJP

PJP

2[LGHV RI 1LWURJHQDV12

6XVSHQGHG 3DUWLFXODWH0DWWHU 630

5HVSLUDEOH 3DUWLFXODWH0DWWHU 530 VL]HOHVV WKDQPLFURQV

7LPH

KRXU

 -DFRE +RFKKHLVHU 0RGLILHG1D $UVHQLWH  0HWKRG  *DV3KDVH &KHPLOXPLQHV FHQFH  +LJK9ROXPH 6DPSOLQJ $YHUDJHIORZ UDWHQRWOHVVWKDQ PPLQXWH   5HVSLUDEOH SDUWLFXODWHPDWWHU VDPSOHU

 1RQ'LVSHUVLYH ,QIUD5HG1',5 6SHFWURVFRS\

$QQXDODULWKPHWLFPHDQRIPLQLPXPPHDVXUHPHQWVLQD\HDUWDNHQWZLFHDZHHNKRXUO\ DWXQLIRUPLQWHUYDO

KRXUO\KRXUO\YDOXHVVKRXOGEHPHWRIWKHWLPHLQD\HDU+RZHYHURIWKHWLPHLW PD\ H[FHHG EXW QRW RQ WZR FRQVHFXWLYH GD\V

$QQXDODULWKPHWLFPHDQRIPLQLPXPPHDVXUHPHQWVLQD\HDUWDNHQWZLFHDZHHNKRXUO\ DWXQLIRUPLQWHUYDO

KRXUO\KRXUO\YDOXHVVKRXOGEHPHWRIWKHWLPHLQD\HDU+RZHYHURIWKHWLPHLW PD\ H[FHHG EXW QRW RQ WZR FRQVHFXWLYH GD\V

$SSHQGL[HV 

$SSHQGL[HV 

1DWLRQDO$PELHQW$LU4XDOLW\6WDQGDUGV 3ROOXWDQWV

7LPH

1DWLRQDO$PELHQW$LU4XDOLW\6WDQGDUGV

&RQFHQWUDWLRQLQDPELHQWDLU

0HWKRG

3ROOXWDQWV

&RQFHQWUDWLRQLQDPELHQWDLU

0HWKRG

$QQXDO $YHUDJH

—JP

—JP

—JP

 ,PSURYHG:HVW DQG*HDNH 0HWKRG  8OWUDYLROHW )OXRUHVFHQFH

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

—JP

—JP

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

—JP

—JP

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

—JP

—JP

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

 KRXUV

—JP

—JP —JP  $660HWKRGDIWHU VDPSOLQJXVLQJ (30RU HTXLYDOHQW ILOWHU SDSHU —JP —JP

$PPRQLD

$QQXDO  KRXUV

PJP PJP

PJP PJP

PJP PJP

&DUERQ

 KRXUV

PJP

PJP

PJP

PJP PJP

PJP

$QQXDO $YHUDJH

—JP

—JP

—JP

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

—JP

—JP

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

—JP

—JP

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

—JP

—JP

 KRXUV

—JP

—JP

—JP

$QQXDO $YHUDJH

—JP

/HDG3E

 KRXUV

—JP

—JP —JP  $660HWKRGDIWHU VDPSOLQJXVLQJ (30RU HTXLYDOHQW ILOWHU SDSHU —JP —JP

$PPRQLD

$QQXDO  KRXUV

PJP PJP

PJP PJP

PJP PJP

&DUERQ

 KRXUV

PJP

PJP

PJP

PJP PJP

PJP

6XOSKXUGLR[LGH62

2[LGHV RI 1LWURJHQDV12

6XVSHQGHG 3DUWLFXODWH0DWWHU 630

5HVSLUDEOH 3DUWLFXODWH0DWWHU 530 VL]HOHVV WKDQPLFURQV /HDG3E

KRXU

 ,PSURYHG:HVW DQG*HDNH 0HWKRG  8OWUDYLROHW )OXRUHVFHQFH

 -DFRE +RFKKHLVHU 0RGLILHG1D $UVHQLWH  0HWKRG  *DV3KDVH &KHPLOXPLQHV FHQFH  +LJK9ROXPH 6DPSOLQJ $YHUDJHIORZ UDWHQRWOHVVWKDQ PPLQXWH   5HVSLUDEOH SDUWLFXODWHPDWWHU VDPSOHU

 1RQ'LVSHUVLYH ,QIUD5HG1',5 6SHFWURVFRS\

$QQXDODULWKPHWLFPHDQRIPLQLPXPPHDVXUHPHQWVLQD\HDUWDNHQWZLFHDZHHNKRXUO\ DWXQLIRUPLQWHUYDO

KRXUO\KRXUO\YDOXHVVKRXOGEHPHWRIWKHWLPHLQD\HDU+RZHYHURIWKHWLPHLW PD\ H[FHHG EXW QRW RQ WZR FRQVHFXWLYH GD\V

6XOSKXUGLR[LGH62

2[LGHV RI 1LWURJHQDV12

6XVSHQGHG 3DUWLFXODWH0DWWHU 630

5HVSLUDEOH 3DUWLFXODWH0DWWHU 530 VL]HOHVV WKDQPLFURQV

7LPH

KRXU

 -DFRE +RFKKHLVHU 0RGLILHG1D $UVHQLWH  0HWKRG  *DV3KDVH &KHPLOXPLQHV FHQFH  +LJK9ROXPH 6DPSOLQJ $YHUDJHIORZ UDWHQRWOHVVWKDQ PPLQXWH   5HVSLUDEOH SDUWLFXODWHPDWWHU VDPSOHU

 1RQ'LVSHUVLYH ,QIUD5HG1',5 6SHFWURVFRS\

$QQXDODULWKPHWLFPHDQRIPLQLPXPPHDVXUHPHQWVLQD\HDUWDNHQWZLFHDZHHNKRXUO\ DWXQLIRUPLQWHUYDO

KRXUO\KRXUO\YDOXHVVKRXOGEHPHWRIWKHWLPHLQD\HDU+RZHYHURIWKHWLPHLW PD\ H[FHHG EXW QRW RQ WZR FRQVHFXWLYH GD\V

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

 3ULQFLSOHVDQG3UDFWLFHVRI$LU3ROOXWLRQ&RQWURODQG$QDO\VLV

$33(1',;

$33(1',;

1DWLRQDO$LU4XDOLW\0RQLWRULQJ 3URJUDPPH1$03 'XULQJ± \HDUV LQ%DQJDORUH&LW\

1DWLRQDO$LU4XDOLW\0RQLWRULQJ 3URJUDPPH1$03 'XULQJ± \HDUV LQ%DQJDORUH&LW\

$QDQGDUDR &LUFOH  630