Question-and-Answer Session
Operator
Thanks you. We will now begin the question-and-answer session. (Operator instructions). This time our question comes from Jerry Rumples [ph] who is a private investor.
Jerry Rumples
I was wondering on that plant that you guys, the demonstration plant you are building in China and the agreement that you had with them, if they do get to build a CTL plant, would you imagine that the size or skill of the job would be bigger as far as how much oil would be produced from the core plants because it would be easier to get mass amounts [ph] to the plant to what we would have like the animal fat, one that is used at Geismar? And also what sort of royalty agreement would you have? Let's say for the plant in china, just to look at the size of your Geismar one, it is 75 million gallons a year, what kind of royalties could we expect to the bottom line to our corporation (inaudible)?
Gary Roth
This is Gary Roth. A typical cold liquid plant in commercial scale is in the 17,000 barrel a day range. So if things go well, we would expect Sinopec to build multiples of the typical size which is again 17,000 barrels a day. And the royalties are at markets, so they would be determined at the time of contract, that is the current agreement with Sinopec.
Jerry Rumples
And you say 17 barrels, 17, 000 barrels of what, a 35 or 55 gallon barrel or gallons at a barrel is a typical CTL plant?
Gary Roth
42 gallons per barrel.
Jerry Rumples
Okay. So that would be about 700,000 gallons a day? Okay. Thank you. Good job.
Gary Roth
Thank you.
Operator
Thank you. Our next question comes from Chuck Pillar who is a private investor.
Chuck Pillar
Good day. I have been following this for quite a while and really have to comment on the advancements that have been made. Two questions. One very quick. Curious about advanced orders, and the second, when I take a look at Geismar facility and if we take a look at Mother Nature, I'm kind of curious what disaster preparation or plans are in place so we don't have Mother Nature knocking us off-line?
Gary Roth
I'm not sure what you mean by advanced orders, if you could explain it to us.
Chuck Pillar
Orders for production, advanced orders?
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