Document 4aEkJadoKpy5x6dqawboY2XdQ

PLAINTIFF'S EXHIBIT r ANNUAL REPORT TO THE MEMBERSHIP March 5, 1 976 ypsum Association SGP 0010366 SECRETARY'S REPORT SGP 0010367 REPORT OF THE SECRETARY TO THE MEMBERSHIP MARCH 5, 1976 Members of the Gypsum Association staff, along with the members of our several committees, regularly evaluate our activities. We want to be sure that the various programs in which we are engaged are suitable for industry-wide participation and not more appropriately left to individual member company action. We ask first, is it good business judgment, second, is it economically viable as an Associa tion activity and, third, would it be a duplication of individual member company efforts? Seldom has there been stronger confirmation of our working policies than during the past six month period. We believe that the major programs with which we have been involved during the six months epitomize the importance of good, hard working, pragmatic Assoc:ation activity. I would like to touch on a few of the key programs, most of which will be covered in depth in commit tee reports. MOBILE HOME INDUSTRY It has been just a little over one year since the membership directed the Association to become involved in the mobile home industry. It became apparent that this vast, new, potential market for gypsum board required industry action. In this short period of time, the Association, always with committee involvement and guidance, assisted SGP 0010368 2- - in representing the industry with the Department of Housing and Urban Development in the production of a national standard for mobile homes which will require use of some gypsum board. We have initiated a liaison with the Manufactured Housing Institute and its members to educate and train mobile home manufacturers in changing over to the use of gypsum board. We have also conducted a promotional program to some 500 coach manufactuers to assist them in the training, promotion and use of gypsum board in their mobile homes. The results are extremely gratifying. The second largest coach manufacturer (possibly No. I at this writing) now uses gypsum board throughout its homes. Seven of the twelve largest manufacturers are now building prototypes which include gypsum board. Many other manufacturers are requesting our assistance in technical and code areas, in production, and especially in the promotion of gypsum board to their dealers and consumers. The important aspect of the entire situation is that we are an industry, working together to convert another industry to the use of our product. The result will be a new market, the size of which we have not seen in many years. FIRE RESISTANCE MANUAL The acceptance and use of our Fire Resistance Design Manual keeps snowballing. After more than ten years' work by our committees and the Association staff in gaining acceptance for the manual, we now have been given a go-ahead by the membership to expand this work through SGP 0010369 3- - direct training in its use by member company field personnel. The results of this program cannot help but multiply the exceptional ad vantage we enjoy over other industries by having our manual a part of over 2000 building codes all over the country. Through proper training in the use of our manual, these hundreds of member company field representatives can significantly increase the acceptance of our products industry-wide with architects, designers, contractors and building officials. METRICATION The probable change to the metric system by the entire United States is becoming a more topical subject every day. The Association has fortunately prepared for this conversion by having a special task force (made up of the chairman of each standing com mittee) preparing to recommend a conversion program to tho membership. Initially, there was only passing interest in this change to metric, but during the last round of committee meetings, the subject has become much more popular. As yet, there is no definite recommenda tion for a timetable or for specific metric sizes of gypsum products. However, this task force will meet the day before our annual meeting and the viewpoints of each committee will be aired. Hopefully, a recommendation will be forthcoming to the membership on this subject. OTHER GOVERNMENT LIAISON The ever-increasing governmental bureaus, each with its own standards, form of reporting, regulations and surveys, have occupied SGP 0010370 4- - a good portion of staff and committee time. Host of the alphabetized organizations have now become household words to us. The Safety Com mittee is vitally concerned with OSHA, NIOSH, MESA, and are continually alert to the hearings and regulations of each. The Manufacturing and Mining Committee is participating with FEA, EPA, as well as the Depart ment of Commerce, to assure that our industry is adequately represented in these vital areas. Of course, the Building Code and Technical Com mittees continually maintain liaison with HUD, NBS and other quasigovernmental agencies to insure a favorable position for gypsum in technical and regulatory standards. We can assure the membership that we are following the correct procedure by having the Association present our industry position through each of these programs. It has become standard procedure for any govern ment agency given an assignment which requires liaison with our industry to call the Gypsum Association. We feel we have developed a standard operating procedure second to none in properly and effectively rep resenting our membership. STATISTICAL PROGRAM After almost six months of deliberation among member companies, non-members and out confidential auditing firm, we will begin to collect gypsum wallboard statistics in individual states. We thank the many company people who have given us their assistance, as well as all com panies who are now reprogramming and revising their own procedures to make this program a success. SGP 0010371 -5- ASSOCI AT I ON EXPANSION After considerable deliberation at the semiannual meeting, the membership delayed a vote to expand the membership of the Gypsum Associa tion to include foreign producers. The staff was directed to obtain further information about possible new members from outside the limits of the United States. This information has been collected and it is expected that this subject be discussed further at the upcoming annual meeting. FINANCIAL MATTERS Included in the Board of Directors' copy is a financial state ment of the Association showing our present status. Also included is a proposed budget based on the recommendations of all of our standing commit tees. At the present writing, we cannot recommend a definite rate of assessment to cover the proposed budget because several member companies were unable to give us their 1975 tonnage. We will hopefully have all information on tonnage by our annual meeting so that a rate of assess ment may be recommended to the membership at that time. Respec i ' ' 1 /^submitted, it ,, -1 < L- A. A/; etc- -tbnee, Jr. / Vt_ Secrata-s SGP 0010372 SAFETY COMMITTEE SGP 0010373 REPORT OF THE SAFETY COMMITTEE TO THE MEMBERSHIP MARCH 5, 1976 The Safety Committee has not met since the semiannual meeting. Thus, this report will cover current committee activities on anticipated programs which will be more completely discussed in my verbal report at the annual meeting. The committee will have discussed all items prior to that time. INDUSTRY ACCIDENT EXPERIENCE 1975 is now history, and the members of the Safety Committee look forward to continuing accident prevention activity in order to make our industry a model for others to emulate. The final 1975 safety campaign report reflected nearly a 40% decline in the industry frequency rate as compared with the final 1974 figures. The final 1975 accident frequency rate was 4.31 with a total of 53 accidents reported, and 12,293,968 man-hours worked. Foil owing are the winners of the Safety Contest to which we of the committee ccfer our congratulations: Presidential Division United States Gypsum Company, Shoals, Indiana Citation Division United States Gypsum Company, E. Chicago, Indiana T riumph Division The Celotex Corporation, Hamlin, Texas SGP 0010374 2- - Peerless Division United States Gypsum Company, Galena Park, Texas Additional safety statistical standings are tabulated in the attached Safety Statistical Report. For industry safety contest purposes, we have been following the lead of the National Safety Council and have continued to use the ANSI Z 16.1 standard. However, we have felt certain that the Council would ultimately change to the OSHA record keeping system and have begun to collect statistics on that basis as well. The decision has now been made by the Council to begin using the OSHA system as of January, 1977- The Safety Committee will discuss the situation at the March meeting and vote on similarly changing the Association's statistical system. A full report on that discussion will be made at the annual meeting. FEDERAL LEGISLATION The principal pending OSHA standard which will affect all member plants is the one on occupational noise. As you are aware, industry took a stand on this :tern by submitting written comments and participating in hearings on the matter. The final form of the standard should be published by the end of the first quarter, at which time the committee will review it in depth to determine if further activity is in order. In any event, we will execute in formative advisories to the membership as the situations develop. SGP 0010375 3- - On another subject, the transfer of MESA functions, along with its staff and budget, are still a matter of concern. The Gypsum Association recently testified at the hearings on HR 9318 as sponsored by Representative Dominic Daniels and is now standing ready to testify on a similar bill in the Senate, S 1302, sponsored by Senator Williams, should hearings be scheduled. Our general posture is that such a transfer would serve no useful purpose at this time and, in fact, would be counter-productive. OTHER FEDERAL ACTIVITY OSHA, MESA, NIOSH, and other federal agencies are continually awarding contracts to private concerns for studies on various subjects concerning occupational safety and health. The Safety Committee and the Association staff monitor such activities closely in order to actively participate in those studies deemed to be of benefit to our industry and to decline participation in those which are considered of little value. The latest of these is a contract awarded to Galson Labs, an upstate New York company, to study the extent to which carbon monoxide is a problem, if at all, in the gypsum board manufacturing operations (SIC 3275 cl assification). One member company plant has been v'S ted and Galson has made an initial contact with another member's e ant in the same vicinity. Results of internal testing by some of the membership in their own behalf :ndicate that Galson will not find a significant carbon monoxide problem in our industry. It is thought that the 3GP 0010376 -4- intent of this study is an objective for OSHA to propose a reduction in carbon monoxide levels below 35 ppm in the near future. OTHER NATIONAL SAFETY COUNCIL ACTIVITY The committee continues to monitor National Safety Council activity through section memberships by several committee members and Association staff personnel who are members of the Council's Industrial Conference. Mr. Schmitt, committee member, was the author of a pro posed product safety guidelines manual which the Council is considering publishing for general industry guidance. The draft has been reviewed by several member companies and with only minor modifications, it is felt to be a very excellent publication. The Safety Committee adds its congratulations to Mr. Schmitt for a job well done. NEW SAFETY PROGRAMS The Safety Committee is quite proud of the two recently developed Association safety projects which include the third edition of the Industrial Safety Manual published in loose leaf form, and doubled in size of previous editions, and the Plant Safety Training Program for plant supervisory use and employee safety training. Both of these programs are highly recommended for member company use and moderately priced to ensure your support and application at industry plant 1 oca tions. SAFETY SEMINAR SERIES The Safety Seminar Series continues to be well accepted by the membership. Another presentation of the program will be made by SGP 0010377 -5- staff and committee members the day following our next committee meeting in New Orleans, Louisiana. An excellent turnout is expected from plants in the south/central section of the country. Future seminar programs are planned for the Virginia area in May; the Chicago, Illinois area in August; the Lansing, Michigan area in October. The committee is currently working on some refinements to the seminar program, after which it is our intention to propose that funds be budgeted to develop a s1ide/cassette presentation of this material to be incorporated into a proposed Volume II of the Plant Safety Train ing Program presently being planned. 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E O0 -- 3> 3C 5 J CL d c n E 3 E 3 F 3 in 03 E a. cl 3 >- E C3 in V Q. :n in in in >~ E in 03 in +- c a) CL > *> CL CL CL CL CD Q > >- > o CL CL CL >- E >~ CD iO cd CD CD CD ui> CD 0 CO E 0) 0 roX in 4- L' in in in in 4-* 4--< in in m -- c 03 0) 4- 4-J 0) 0) M 4-> ca) o a) 4-* E ro 3 4-J r-- X CO 4-J E y 4- 03 03 +-J 4-J 03 +J 03 4-J E 0) <c-> 03 4- in ro Q. +- 03 CO cj c to to to to o -- to >></) 4-> -- r-- CD in "O 4 ,-- "O "D "O T3 u Ll "O Cl) <D 0) Ll a) a) a) a) a) <D -- ro 4-J in 4-> 4-J 4-* 4-> in 4-J CL 4-J *-- -- *-- c: -- ro a) X c c C c 03 X c E0) --c < X 1- 13 X 3 3 2^ h- 3 H => SGP 0010381 -4 - NATIONAL GYPSUM OSHA WORKDAY FREQUENCY RATE Plants National City, Michigan Shoals, Indiana Medicine Lodge, Kansas Bronx, New York Baltimore, Maryland Fort Dodge, Iowa Phoenix, Arizona Tampa, Florida Richmond, California Portsmouth, New Hampshire Rotan, Texas Savannah, Georgia Westwego, Louisiana Clarence Center, New York Burlington, New Jersey Lorain, Ohio Long Beach, California Waukegan, Illinois OSHA Rate 1.45 2.03 2.77 2.80 3.53 3.096 5.30 7.92 8.16 8.50 8.6 9.18 9.43 11.10 14.78 16.44 17.84 29.32 SGP 0010382 5 GYPSUM ASSOCIATION SAFETY CAMPAIGN FREQUENCY RATE FIGURES BY CLASSES FOR TWELVE MONTHS - 1976 Total Number Man-Hours Total Number Accidents Frequency Rates Presidential Citation Triumph Peerless Totals 5/138/680 3/294,719 2/487,462 1/373,107 12,293,968 9 26 11 7 53 1.75 7.89 4.42 5.10 4.31 PART II GYPSUM ASSOCIATION SAFETY CAMPAIGN FREQUENCY RATE FIGURES BY DEPARTMENT FOR TWELVE MONTHS - 1976 Mine Quarry Mill Board Block Warehousing Maintenance Miscellaneous Totals Total Number Man-Hours 315,369 414,364 1,383,632 4,260,515 79,147 1,074,314 2,414,097 2,352,530 12,293,968 Total Number Accidents 3 1 6 20 1 7 12 3 53 Frequency Rates 9.51 2.41 4.34 4.69 12.63 6.52 4.97 1.28 4.31 Per Cent of Man-Hours Worked in Each Classification to the Total Number of Hours Worked: Mine Quarry Mill Board Block Warehousing Maintenance Miscellaneous 2.57 3.37 11.25 34.66 .64 8.74 19.63 19.14 100.00 Per Cent of Accidents in Each Classification to the Total Number of Accidents Reported: Mine Quarry Mill Board Block Warehousing Maintenance Miscellaneous 5.66 1.89 11.32 37.73 1.89 13.21 22.64 5.66 100.00 THE INDUSTRY OSHA RATE IS 6.77 SGP 0010383 TECHNICAL COMMITTEE SGP 0010384 REPORT OF THE TECHNICAL COMMITTEE TO THE MEMBERSHIP MARCH 5, 1976 The ninety-sixth meeting of the Technical Committee was held February li, 12 and 13 in Los Angeles, California. The meeting was attended by 13 representatives from 6 companies, 5 Association staff members and legal counsel. SECTION I - PRODUCTS The revisions to the ASTM products standards for backing board, water resistant backing board, sheathing, form board, lath and veneer base have gone to letter ballot. These standards have been revised to be consistent with C 36 replacing the minimum weight with performance requirements. The C 79 sheathing standard also in cludes the new 5/8" type X sheathing, 3/8" sheathing and .4" sheathing. A revision of the C 36 standard has also gone to letter ballot with 5/16" thickness being added. The Metric Committee has asked each of the other Gypsum Association committees to consider whether the Association should actively pursue metric conversion and whether hard or soft conver sion should be favored. The Technical Committee voted four affirma tive and two abstentions on the issue of whether to pursue actively and four affirmative, one negative and one abstention for hard con version. The Technical Committee will recommend to the Metric Com mittee that the original list submitted to the Manufacturing and SGP 0010385 2- - Mining Committee be the one used by the staff in their discussions with other groups. Some revisions in the list were made in the Manufacturing & Mining Committee, and the Technical Committee does not agree with these revisions. A draft of the pre-decorated board standard was prepared taking into account the fact that some products are used on ceilings only and others are used on walls only. Members have been requested to evaluate the durability, washability, and pick resistance tests on their own products to determine whether another round robin test series is in order. The Houser type X bench test method is on C-11 Main Com mittee letter ballot. The Technical Committee has a test series under way to establish values for 1/2" and 5/8" regular and type X wall board using the Houser method. The test method should be use ful in establishing minimum fire test values for the new generation of 1/2" type X boards, which currently exceed the fire resistive qualities of 1/2" type X board utilized in many fire tests con tained in the Fire Resistance Manual. Racking tests on 5/8" type X sheathing are needed to provide shear data for reference and for future revisions of the Gypsum Association sheathing literature. A budget item of $2,000 has been p roposed. SGP 0010386 3- - Mr. Lawson has completed the potential heat tests on the various board products submitted by the member companies. The values will be confidential until such time as the report is issued by the Bureau. We can report that the figures for potential heat are very favorable and substantiate that all products easily qualify under the new NFPA definition for limited combustibility. The complaint on wallboard quality, which was originally directed to the Gypsum Association, is being handled in ASTM C-ll. A task group has been appointed to investigate what tests can be de veloped to evaluate the paper and the core of gypsum wallboard as re lated to its application properties. SECTION II - SYSTEMS The standards for the application of gypsum plaster, gypsum veneer plaster, installation of lathing and furring, and installation of veneer base have all been advanced to final ASTM Society ballot. ASTM standard C 645 for steel framing and C 754 for the in stallation of steel framing members have been criticized by ICBO. The criticism centers around the need for a stiffening lip on metal studs, the fact that no load has been spelled out for the deflection criteria in C 645, and the inconsistencies existing between C 645 and C 754 re garding allowable spans. The Technical Committee plans to work with ICBO to seek revisions in these ASTM standards. The specification for the application of gypsum wallboard in SGP 0010387 4- - ASTM has been advanced to Society ballot with two producer members negatives being ruled non-persuasive. A vote of the Technical Committee to oppose the C-ll specification resulted in one negative, so the staff representative will abstain from voting in the Society ballot. The committee also voted to retain the Gypsum Association 216 standard for application of gypsum board even if the current ASTM stand ard is adopted. The conflict is the 24" o.c. spacing for 1/2" board where water base textures are applied. The ASTM proposal permits 1/2" board to be used perpendicular to framing joists 24,f o.c. with a pre cautionary note that sag may result in cases where textures are applied to any thickness of board at any frame spacing, and the manufacturers1 literature should be consulted. The majority of the Technical Committee feel that 5/8" thick wallboard should be specified wherever water based textures are applied. We have several continuing problems concerning the application of ceramic or plastic tile over water resistant wallboard. One is the flexibility of untaped joints between studs. A maximum of 16" center spacing is being specified to minimize this problem and we are also recommending that blocking be used behind the joint. A second problem is the insistence by the Ceramic Tile Institute that joints behind tile be taped and finished. The reason is the untaped joints make an uneven surface for the application of the tile. Taping and finishing of joints under the tile is contrary to our recommendations and makes the system SGP 0010388 5- - vulnerable to failure because of the water sensitivity of joint com pounds. We have suggested that the tapered joints be filled with tile mastic prior to the application of the tile, but this has not been accepted as a satisfactory solution. The ANSI A 108 standard for tile application is being re vised and includes a recommendation for taping joints where tile is to be applied. Our staff representative is voting negative on this s tandard. The Association Technical Committee is preparing a ''white paper" describing the development of water resistant board and the necessity for strict adherence to application recommendations. Another development is the use of a so-called dry set mortar in Los Angeles. A letter will be directed to the City of Los Angeles indicating that the use of the dry set mortars may be premature in asmuch as no testing has been done by the gypsum industry. A task group was appointed to investigate the effect of large amounts of insulation over gypsum ceilings. The committee feels that there may be some maximum weight of insulation that can be used without creating a sag p.obiem. A meet'nq was held between the Gypsum Association members and members of the Manufactured Housing Institute. Mutual problems SGP 0010389 6- - were discussed and it was decided to assemble test data from various member companies that could be used in the Association to promote gypsum board for factory built homes. During the meeting it was recommended that an engineering study be made and possibly further testing be done to establish single values that can be promoted by the Gypsum Association. The objective is to avoid minor inconsist encies and to avoid unnecessary testing by the industry. There may not be total agreement with this as some members indicated their companies may not wish to release the test data. The Manufactured Housing Institute would like to have us drop the MH designation in order not to have a special board for use in mobile homes. The committee, however, wishes to retain the MH designation because of the special nature of the product. A rough draft of an application standard for 5/16" MH board was distributed for review and comment. It was proposed that certain shaft wall systems be desig nated as generic for the next edition of the Fire Resistance Design Manual, and this topic will be added to the Technical Committee agenda. SECTION I I I - TESTING On March 12, the metal stud chase wall using metal and gypsum gussets and having 5/8" type X facing will be tested at Underwriters for a 1 hour rating. If successful, U.L. has agreed to extend the 2 hour rating w' addition of another layer of type X board on each side. The cost o^ this test is anticipated to be $5,000 which will come under next year's test expenditures. SGP 0010390 7- - The committee believes the Fire Resistance Design Manual has certain weaknesses regarding sound data which is either missing or obsolete. In order to rectify this, eight constructions are pro posed for sound testing next year and a budget of $10,000 is being requested. Committee E 5 has finally resolved the placement of thermo couples on fasteners during E 119 fire tests. The new procedure will make the testing more uniform from one agency to another and is the method which will be followed in the test of our chase wall at U.L. SECTION IV - CONSUMER PRODUCTS It was reported that an ASTM Committee F 14 on consumer products safety has been formed. One subject of interest to us is the attachment of grab bars in tub and shower areas. SECTION V - GENERAL SUBJECTS The re-write of "Using Gypsum Board for Walls and Ceilings" is complete and has been distributed for final comments. Up-to-date revision of this publication is needed and should be ready for print ing within the next couple months. Mr. J. R. Lawson, our Research Associate at the National Bureau of Standards, continues to monitor the ongoing mobile home fire testing program and to develop ease of ignition tests, potential heat determinat:ons, type X bench test and other activities. Through SGP 0010391 8- - the Association, we are arranging to furnish more gypsum board products to be used in the mobile home testing. This will assure that gypsum board will be prominently considered in the test program at the Bureau. It is Mr. Lawson's opinion that the final test results, when published by the Bureau, will show gypsum products as the preferred finish for mobile homes because of their fire resistant properties. There has been some concern expressed to ICBO that elevator doors in gypsum shaft wall openings have not been tested and there fore may not provide the required fire ratings. While this appears to be the elevator door manufacturer's problem, the gypsum industry stands to suffer if codes prohibit using gypsum shaft walls on this account. Some details will be developed for attaching elevator doors in gypsum wall shafts in the hope of solving the problem. The com mittee feels that this is a serious problem and may require testing to resolve. A glossary of terms relating to gypsum products and applica tion is being developed for possible inclusion in the Association 1itenature. The fee r' :al and Building Code Committees had proposed to engage an expert fire safety to assist us in presenting to the San Francisco author:?'.s 'easons to revise their falloff criteria. After investigating t h . i b i 1 i ty, it does not appea r very promising. Also, our legal counse'1 a-, advised that we would have a less than 50 per cent chance in arguing against the falloff criteria. It appears that we will have to live with San Francisco's unique interpretation of our fire tests. SGP 0010392 -9- We have begun to make revisions in the Fire Resistance Design Manual, even though the next edition is some time off. We hope to keep it from becoming such a monumental task later. Tests from non-member companies and other industries will be considered for addition to the manual as long as they can be described generically. There is a move by the Bureau of Standards and the University of California to propose changing the ASTM E 119 fire test to require positive pressure. At the moment the proposal only covers tests of assemblies containing openings, but could lead to use of positive pressures for all tests. This could have a major effect on future tests, particularly those with wood frame construction. A new subject considered was bracing of exterior gypsum ceilings which are exposed to high winds. Since it would be ex tremely difficult to make a recommendation covering all cases, a pre cautionary note will be inserted in the appropriate Gypsum Association literature alerting that special bracing may be required where high wind loads are anticipated. Respectfully submitted, ,~\ > ' / . v )'J `-ix.Pl- S' , C. W. Lehnert Chairman SGP 0010393 BUILDING CODE COMMITTEE SGP 0010394 REPORT OF THE BUILDING CODE COMMITTEE TO THE MEMBERSHIP MARCH 5, 1976 Representatives of six member companies participated in the meeting of the Building Code Committee held February 10, 1976 in Los Angeles. In addition, there were members of the staff in attendance at all times, including the NBS Research Associate and legal counsel. For nearly two years, the American Insurance Association has been reporting that completion of a new edition of their National Build ing Code was near; most recently they projected completion by April, 1976. It is reasonable to expect its distribution to begin some time during 1976 and as soon as this occurs, the term "limited-combustible" will gain greatly extended use. As reported previously, this is the category which encompasses gypsum board products and which includes potential heat values in determining compliance. Our NBS Research Associate is nearing completion of a potential heat test program of all standard varieties of gypsum board products and they all easily meet AlA's new "limited-combustible" requirements including vinyl faced gypsum board. When questions or compliance arise, the gypsum industry wiI 1 be ready with the answers Activities related to the other three model codes were re viewed as well, and it was again clearly apparent that our interests are well served by the Association staff in their continued involvement with each of them. BOCA (Building Officials & Code Administrators), SGP 0010395 2- - SBCCI (Southern Building Code Congress International) and ICBO (Inter national Conference of Building Officials) will reference the 1975-76 edition of the Gypsum Association Fire Resistance Design Manual in their new building codes. The committee's continued program to reduce code approval fees has gained its greatest benefits from inclusion of the Gypsum Association manual in these codes. Members have found that it is now almost totally unnecessary to carry individual approvals with BOCA and SBCCI for fire rated gypsum protected assemblies. Such approvals with ICBO have also been greatly reduced. Actions taken at the committee meeting in further expansions of GA sponsored ICBO ap provals will permit further reductions in individual member's approval fees. The significance of this program is highlighted when con sidering that ICBO charged $150 per new approval application just a few years ago and it is now $800. The other code groups are following a similar pattern. The reduction in approvals maintained by individual member companies has at the same time caused a great reduction in recognition of the member companies regarding fire rated as-~^. -o'.'cs. As a means of reinstating such recognition, a recommendation was adopted by the committee that the Gypsum Association sponsored ICBO approval cards begin listing the member companies pending approval by legal counsel and the Board of Directors. SGP 0010396 3- - The Association staff representative in Washington provided information covering a broad range of his federal activities that bear on the gypsum industry. Of greatest moment is the rapidly approaching enforcement of the Federal Mobile Home Law, beginning June 15, 1976. The National Conference of States on Building Codes and Standards (NCSBCS) has become incorporated as a private organization, thereby severing its connection with the National Bureau of Stanards, and has been appointed as the official supervisor of the enforcement and local inspection required under the Federal Mobile Home Law. NCSBCS will play a major role in the determination of what products are acceptable in mobile homes and in how they are used. Fortunately, the Association staff has maintained a close working relationship with this organization since its inception. In anticipation of enforcement under the Federal Mobile Home Law, increasing requests for shear data regarding 5/16" gypsum board on walls and ceilings are being received from mob'le home producers. To minimize the need for repetitive testing by thr many producers of 5/16" MH gypsum beard in similar ceiling and wa1 esigns, the Code Committee has recommended to the Technical Cumr. ' > e Jiat they evaluate and develop such criteria as generic values based o- testing by the Association for ihe industry. The Texas State Insurance Commission '.ally places in surance penalties on structures if required I'in .' -d assemblies are SGP 0010397 4- - not U.L. listed. The Association staff was successful in obtaining the commission's reconsideration to recognize the Fire Resistance Design Manual at their annual hearing which occurred directly after our com mittee meeting. We have been notified that they did not approve it at the hearing but they expressed keen interest in the manual and the staff will be working diligently with them toward ultimate approval. On February 6, 1976, the California State Fire Marshal (CSFM) withdrew their requirement for compliance with their new toxicity reg ulation for interior finish materials, pending development of a satis factory test method to determine levels of toxicity. New York City has been enforcing their toxicity requirement for some time and similar regulations are present in many building codes although not enforced. A member company has offered Lo transfer their toxicity test reports to the Association covering unpainted, painted, vinyl faced, and tex tured gypsum board for a reimbursement of their costs to aquire the reports. The committee has requested the Board of Directors to provide funding for such purchase including reasonable costs for gaining report modifications to classify the pioducLs generically, if agreeable to the testing laboratory. The cost is She"'. plus re-issuance charges that would make the report usable in all in. members, with an uppe of $1200. On behalf of the cor "mi sv, it i s my recommendat i op that the Board of Directors approve the expenditure of up to $1200 witn the understanding that the committee Iirst -e-evaluate the need as a result of the CSFM action, prior to consummating such purchase. SGP 0010398 5- - We reported previously that it appeared that the City of Los Angeles would finally lift its prohibition to use of water resistant backing board as a base for tile in bath and shower areas. Approval for such use was granted in December, 1975, issued to the Ceramic Tile Institute. It is acceptable and follows our industry recommendations with one exception: the requirement of joint compound and tape over joints behind tile. This is contrary to our industry recommendations. The Ceramic Tile Institute recently filed for modifications to the approval which would also be contrary to our recommendations. In cooperation with the Technical Committee, a task group was formed to develop a formal statement for the Association staff to submit to Los Angeles City covering our recommendations on the application of water resistant board under tile. Another task group was formed to prepare a "white oaper" tracing the development of water resistant backing board and the many sound reasons for the application require ments presently '"ecommended by our industry for use in wet areas and anywhere else wj'r auestions might arise. Short ' . ,! ter the fall meeting of the Board of Directors, a new case came n-4 . the San Francisco Board of Examiners involving a request by a ioc1 uss producer that they overturn a previous denial for a fire rated assembly imposed by the Superintendent of the Bureau of Inspection due fc f:a I!-off.11 The Board unanimously supported the Superintendent's ` or. and denied the acpea? of the truss manufac turer. The matte1 .-a- eviewed carefully b-, our 1 ega 1 counsel and SGP 0010399 6- - their report indicated that the prospect of eliminating the San Francisco "fall-off" criteria would probably require court action with a somewhat limited chance of success. It is the recommendation of the committee that this matter be held in abeyance for the immediate future. The many other items covered during our meeting are contained in the minutes. On behalf of the committee, thank you for your continued support of our activities. Respectfully submitted, John K. Hovind Chairman SGP 0010400 SGP 0010401 REPORT OF THE TRAFFIC COMMITTEE TO THE MEMBERSHIP MARCH 5, 1976 The Traffic Committee will hold its spring meeting in Evanston, Illinois, March 15 and 16, 1976. Highlights of the agenda subjects to be covered at this meeting are: TRANSPORTATION LEGISLATION THE REVITALIZATION AND REGULATORY REFORM ACT OF 1976 After an unprecedented review by the House and Senate Committees, along with the administrative representatives during the Christmas adjourn ment, the House and Senate agreed to a further compromised version of S 2718 late in January, and the bill was signed by President Ford (Public Law 94-210) making it effective February 5, 1976. This bill provides money for govern ment loans and grants for railroad rehabilitation in general. It also in cludes some reform of the Interstate Commerce Commission a :d revision of regulations that affect railroad freight rates; proposed changes in rail regulatory procedures that have been under discussion for the past several sessions of Congress. A summary of the most important provisions of the Act is as follows: 1. Revision in railroad rate-making practices - this gives the railroads greater freedom from ICC rate regulation and revises the procedures for committee rate-making under the anti-trust law exemptions. 2. Provisions designed to expedite ICC action on rail road mergers and consolidations. SGP 0010402 2- - 3- Establishment of railroad rehabilitation and improve ment financing in the amount of $1.6 billion to be administered by the Department of Transportation. 4. Provision of $2.1 billion for the startup of Con solidated Rail Corporation (ConRail) on April 1, as the freight railroad restructured from bankrupt lines in the northeast and midwest regions. 5. Funding for Amtrak and authority for the Department of Transportation to carry out the upgrading for rail passenger service in the northeast corridor. 6. Provides $360 million for assistance in continuation of little used rail lines. It was recommended that the Gypsum Association support this bill, but due to lack of full membership support, no action was taken. Committee members will keep abreast of developments and the implementa tion of the provisions of this new statute as :t will affect the gypsum indus t ry. MOTOR CARRIER LEGISLATION HR 10909, S 2929, "MOTOR CARRIER REFORM ACT11 Several months ago, the administration presented to Congress a proposed widespread revision in the motor carrier regulatory statutes. This follows the ''less regulation" theme currently being voiced by the Department of Transportation which would reduce the activities and control of the ICC. With the major rail legislation now out of the way, this motor carrier revision should come into serious consideration by the SGP 0010403 -3- appropriate Congressional committees. The provisions of this bill and its affect upon the gypsum industry will be discussed at the Traffic Committee's spring meeting. INTERSTATE COMMERCE COMMISSION'S PROCEEDINGS EX PARTE Ik, MC-1 REGULATIONS FOR PAYMENT OF RATES AND CHARGES RAILROAD AND COMMON MOTOR CARRIERS In September 1975, the ICC published a decision as the result of their investigation into the payment of freight charges to both rail and common motor carriers by shippers and receivers of freight that would: Establish a credit period of seven days excluding Saturdays, Sundays, and holidays. Extend the credit period to a total of 30 days if a freight charge was not paid within the seven day period, but assess a service charge equal to one per cent of the amount of the freight bill, subject to a $10 minimum charge. The Commission had been involved in an investigation of carriers* credit rules and found many shippers and receivers of freight were not paying their bills within the required time. The ICC found this was unjustly discriminatory to those who pay promptly and therefore prescribed the penalty charge for late payment. The credit extension period and the penalty for the extension is identical to a recently prescribed credit '"ules change for household goods carriers. The ICC was swamped with numerous petitions from shippers and SGP 0010404 -4- carriers requesting reconsideration of the orders designating these changes. The minimum charge feature would drastically add to the transportation costs of many shipments unless major changes in freight bill payment plans were made in most organizations. The Commission has suspended the effec tive date indefinitely and a modified order is expected in the future. EX PARTE 314 SPECIAL PROCEDURES FOR GENERAL FREIGHT RATE INCREASES In mid-year, the ICC proposed that common carriers by rail, motor, and water, may elect once each year to increase their freight rates, not to exceed 5%> without suspension, but subject to possible investigation. In other words, this would be an open invitation for railroads and truck lines to increase their freight rates 5% each year. In response, the Gypsum Association, in a statement of objections to the Commission, indicated these proposed procedures are neither warranted nor justified and existing procedures for general increases presently balance the interest of the carriers and the shipping public. The railroads were in favor of the proposed new rules, but shippers and shipper groups raised s trong opposition. The Commission ordered an oral argument which was held in Wash ington, October 1, and members of the comm:ttee testified on behalf of the Association. In November, the ICC served an order Ending the proposed pro cedures not justified and directed the proceeding be discontinued. Thus, SGP 0010405 5- - the standard procedure is retained whereby the carriers must prove the need and reasonableness for increased rates or face protest by shippers and possible suspension and investigation by the Commission. EX PARTE 318 GENERAL RAIL FREIGHT RATE INCOME - 1976 The railroads facing increased costs of wages, materials and supplies, have petitioned the ICC for a 7% general freight rate increase, with exceptions for products and movements in territories where it was felt loss of traffic would more than offset the effect of the increase. To date, the Southern Pacific Railroad, including subsidiaries, have not joined the others in the petition. This increase was originally requested to become effective February 24, 1976, but the western railroads petitioned for a 15 day extension which was granted, postponing the effective date to March 6. The ICC indicated tentative approval of the increase on an interim basis pending further investigation and a final order. With the Southern Pacific Railroad continuing to hold out, the western railroads now have pulled out of the proceedings; thus the increase can only be applicable within the east, within the south and between the east and south unless and until there is further change. It appears, however, the western railroads, including the Southern Pacific, will endeavor to solve their difficulties as they all emphasize the need of added revenue. It is therefore anticipated the west, at a later date, will be included in the rate hike. SGP 0010406 6- - ln publishing the tariff for the rate increase, the railroads have made the following exceptions in connection with gypsum industry movements. Product Gypsum Wallboard and Sheathing Plaster, Gypsum Lath, Calcined Gypsum, Gypsum B 1 ock Within East Yes Yes Gypsum or Anhydrite Rock Yes Gypsum Board Paper, Pulpboa rd (50M rates and greater) Paper Bags, Wrapping Paper (50M rates and greater) Yes No Within South 7% Increase is Applicable Within West 1nterterritorial No Yes Except Via FECRR Yes No No No No Yes-between East & South No-between West & East No-between West & South local movements via FEC No-PSFB Ter r. Yes-other Yes No No No No No The Traffic Committee presented the ICC with a petition and verified statement in support of eliminating the 7% increase on the rates for all movements of gypsum products, including gypsum wallboard, gypsum rock, ground gypsum, gypsum board paper, pulpboard and paper bags. The Commission will consider this and many other shipper protests. A final order from the Commission may be several months away. SGP 0010407 -7- ICC DOCKET HC-8506 INTERCORPORATE PARENT-SUBSIDIARY TRANSPORTATION In October, 197^, private trucking interests petitioned the ICC to adopt a general ruling policy to recognize as private carriage, transportation performed for compensation by one related corporate entity for another, in either a parent to subsidiary or subsidiary to subsidiary relationship. Historically, trucks in a private carriage operation by a parent organization cannot be used by a subsidiary or vice versa unless such transportation is performed on a non revenue or "free" basis. Subsidiary companies have not been considered to be a direct part of the parent organization. This focuses around the defini tion of the word "person" as used in the Interstate Commerce Act. Much support for a widened policy regarding private trucking was received but the Commission denied the modification sought relating their decision to what they considered to be the entire transportation need of the nation and not just one segment. One of the provisions of the Motor Carrier Reform Act of 1976 would override this ICC decision. MOTOR CARRIER SUBJECTS SIZE AND WEIGHT LEGISLATION A total of 34 states now permit increased truck weights. In most of these states, truck loads of gypsum products can generally be in the 45,000 lb. to 50,000 lb. range versus the former 40,000 lb. loads. Currently, legislation is pending in Mississippi and Tennessee. In most of these states, this means a 9.2% increase in gross weight or about a 15% increase in payload, which represents a significant increase. The Missouri legislature defeated a weight improvement bill in February. SGP 0010408 8- - The midwestern and Mississippi Valley states are the biggest holdouts with either no action taken during the 1975 legislative sessions, or defeat of bills for greater weights. Leading this trend are the states of Iowa, Illinois and Indiana, which contain industry plants. This in creased truck weight legislation can save the gypsum industry well in excess of a million dollars in transportation costs through the use of larger and heavier loads and the negotiating of reduced freight rates with greater minimum weights. Legislation in the remaining 15 states will be considered during this year's legislative sessions in these states that are lagging behind. There is need for prompting by industry personnel. Members of the legis lature should be contacted and informed of the economies, fuel savings and greater efficiency these added weights permit. RAIL SUBJECTS ASSOCIATION OF AMERICAN RAILROADS' LOADING PROGRAM As previously reported, three alternative loading proposals to the current Association of American Railroads' loading requirements for gypsum board on bulkhead flat cars were developed by a special task force of the Materials Handling, Traffic, and Manufacturing and Mining Committees. These alternative loading proposals were presented to the Association of American Railroads for approval and/or testing. Each alternative method would reduce the use of unitizing bands and reduce the cost of loading bulkhead freight cars, yet satisfactorily secure and protect the loads. SGP 0010409 9- - |n late October, the Open Top Loading Rules Committee of the Association of American Railroads reviewed the three alternatives and found each one not acceptable. They felt that based upon past experience, the present loading requirements were necessary and indicated these more rigid loading specifications have eliminated the problems of disarranged loads requiring adjustment en route. They were not in favor of any further meetings to discuss this subject. Thus, this program is being held in abeyance and member companies are conferring with individual railroads for local exceptions. CAR DEMURRAGE CHARGES The Association became an interested party to a railroad pro posal to revise and clarify the car demurrage rules and charges. Review by the Traffic Committee members did not reveal any serious objections and therefore, it was decided the Association would not be represented at a public hearing held in Kansas City on January 20, 1976. This pro posal will be further discussed at the March meeting of the Traffic Commit tee. An ICC early last year, in a suspension and investiga tion proceeding jpv -the reduction in free time for loading of rail cars from 48 h . '?M hours. This met strong objection from many in dustries in the <`orm o*1 petitions for reconsideration, which were granted. However, the 24-ho.:r free time for loading became effective and continues until otherwise o-reed. The Commission has this under further considera tion and a fina1 decision regarding the lawfulness of the reduced free SGP 0010410 -10- t irne should be reached in the near future. Additional items of interest in the areas of industry trans portation will be presented in my oral report to the membership at the annual meeting. Respectfully submitted, y. Harry / Gobrecht Acting Chairman V-"1 /- SGP 0010411 SGP 0010412 REPORT OF THE PROMOTIONAL COMMITTEE TO THE MEMBERSHIP MARCH 5, 1976 The Promotional Committee is holding its spring meeting April 6, 1976 at the Drake Hotel in Chicago, Illinois. A full report on activities at that meeting will be presented in an oral report to the membership at the annual meeting the next day. Highlights of current committee activity follows: MOBILE HOMES At the last annual meeting, the Association was directed to involve itself in the promotion of gypsum board for use in mobile homes. The Promotional Committee's semiannual report to the membership out lined the recommendations we had made to HUD concerning flame spread requirements to be specified in the standard for Mobile Home Construc tion and Safety. Briefly, the Association's position was that the standard ideally should call for a 25 flame spread rating for walls and ceilings throughout the interior of a mobile home. However, we were aware of practical considerations faced by HUD, such as objections by mobile home manufacturers who felt that requirements for a lower flame spread rating would cause financal and production difficulties for their industry, plus the difficulty of justifying requirements for a lower rating in the absence of sufficient supportive statistical data on mobile home fires. Therefore, we also made an alternate recommenda tion calling for a 25 flame spread rating for all walls (with the ex ception of bath and shower areas and feature walls) and a 75 flame spread rating for cei1ings. SGP 0010413 2- - On December 18, 1975, HUD published their standard calling for a 200 flame spread rating for walls and ceilings, a 25 flame spread rating for furnace and water heater spaces and a 50 flame spread rating for surfaces adjacent to cooking ranges. These regulations become effective on June 15, 197&. Our information indicates that even though stronger require ments for fire resistance were felt to be desirable, HUD was handicapped by the aforementioned absence of sufficient data on mobile home fires. HUD is continuing its own fire research program in an effort to develop such data. This could lead to amendments to the standard. The Gypsum Association is keeping abreast of this research through its Research Associate program at the National Bureau of Standards and is gathering data of its own from member companies for presentation to HUD. Because of the importance of this matter to our industry, we quote the following excerpt from the standard: "FUTURE AMENDMENTS TO THE STANDARD" "HUD believes that the proportion of mobile homes and other manufactured housing in the total housing inventory will continue to increase. HUD also expects that future innovat.on in design, materials, . 'i'su vet i on methods, equipment components, subsystems, and also new methods of testing and evaluation may make some aspects of the initial Federal mobile home standards obsc e . e or inadequate. "Recognizing these factors, HUD expects and plans that the standards will evolve in an orderly fashion to meet changing t\f\Af\AAA 3- - needs and conditions, as have voluntary and state standards in the past. "The office of Mobile Home Standards will have an engineering staff to work on amendments to the standards and to propose and utilize research to support such amendments. "HUD invites comment or other communication at any time from any member of the public or any organization regarding the Federal mobile home standards and possible amendments to those standards." It was determined that there were three key potential audiences for programs promoting the use of fire resistant gypsum board in mobile homes: these are, the manufacturers, the dealers and the buyers. It was decided that our initial efforts should be directed toward the manufac turers and that we would work closely with the Manufactured Housing In stitute. To this end, a task force meeting of technical and promotional representatives from MHI and the Gypsum Association was held December 3, 1975 in Chicago. Several of the largest mobile home manufacturers were represented at this meeting and the-, outlined some of the difficulties they anticipated in changing over to use of gypsum board. They re quested information on gypsum board for their management, supervisory staff and plant personnel. It was agreed that the Gypsum Association would work with MHI, through their appropr'ate technical committee, to nelp them solve their problems. One mobile home manufacturer, Champion Homes of Dryden, Michigan, which has successfully made the changeover SGP 0010415 4- - to the use of gypsum board in all its homes, invited the other manufac turers to visit their plants to see how they had solved most of these problems. The Association, in addition to gathering data on engineering, user experience, fire performance, availability and application of gypsum board to pass along to HUD, has also been contacting mobile home manu facturers. The manufacturers present at our meeting expressed a partic ular interest in our fire resistance manual. We have subsequently made three mailings to all currently active mobile home manufacturers enclosing our appropriate literature (including the 5/16 inch gypsum board standard), pointing out the ad vantages of using fire resistant gypsum board, and offering our assist ance to them. Staff members have also made numerous calls on individual manu facturers to discuss the HUD standard, its possible future amendments, and the advantages of our products. The response to these individual calls has been encouraging and such calls will be continued. We have also offered our promotional assistance to those companies that are already using our products in their mobile homes. Champion Homes, for example, is currently conducting a vigorous advertising campaign in North Carolina which highlights the fire safety in their gypsum board homes. We also maintain continuing contact with MHI and have offered to meet with them at their convenience to resolve any problems. SGP 0010416 5- - The Promotional Committee will consider possible future activity in this area at its April 6 meeting and will make its rec ommendations to the membership on April 7- LITERATURE More than 35,000 copies of the 1975-76 edition of the Gypsum Association Fire Resistance Design Manual have been distributed to date. At this point it appears certain that more copies of this edition will be put in circulation than of any previous edition. The increasing awareness on the part of building officials, architects, designers, etc. as to the importance and value of this book is due, in great part, to its acceptance by the three model codes, HUD's Minimum Property Standards, and numerous city and county codes. The Association is actively pro moting these acceptances. Several new publications are in the preparation and planning stage, most notably a completely revised edition of "Using Gypsum Board for Walls and Ceilings," probably our second most important publication. The rewrite of this book is currently under review by the Technical Committee and it should be printed shortly after the annual meeting. Distribution of other current 1'tera`u'e remains at ' constant high 1 eve 1. EDUCATION A new program was undertaken to promote the use of our lit erature by trade and construction schools throughout the country. To SGP 0010417 6- - date, 44 schools have added our rrFi re Resistance Design Manual,f and "Gypsum In The Age of Man" to their curriculum. This program will receive a substantial impetus with publication of the newly revised "Using Gypsum Board for Walls and Ceilings." The "Study and Use of Gypsum" slide program for architectural schools is currently under review. The staff is investigating the possibility of engaging the services of an interested architectural school professor to survey the needs of such a program and make recommendations of what should be included in a revised and updated program. A report on this sub ject will be included in the oral report to the membership. BALANCED PROTECTION "Fire On The Rise," the film the Association co-sponsored on balanced protection in high rise fires, is being presented on TV stations and to interested groups. To date, it has been shown on 176 stations representing 40,497,900 homes. The commercial value of this time woud oe $102,735. It has also been shown to 100 groups. The staff continues to promote the concept of balanced pro tection in news releases and in contacts with appropriate individuals and groups. TRADE RELATIONS The Association is presenting a symposium on good workmanship at the annual GDCI meeting in San Diego March 8-12. A reception is also planned. A complete report on activity at this convention will be in cluded in our oral report to the membership. SGP 0010418 7- - We did not take part in the annual iaWCC convention this past year because it was held in Hawaii and Association policy does not call for participation in meetings held outside the continental limits of the United States. However, the Association did conduct special training seminars at three regional iaWCC meetings during the past year. These met with considerable success. A similar series of seminars is planned for this coming year. Respectfully submitted, /< 1 Robert J. Day Chairman t/, SGP 0010419 MANUFACTURING-MINING COMMITTEE SGP 0010420 REPORT OF THE MANUFACTURING AND MINING COMMITTEE TO THE MEMBERSHIP MARCH 5, 1976 The Manufacturing and Mining Committee will hold its annual meeting at the Drake Hotel in Chicago, Illinois on April 6, 1976. That meeting is subsequent to the preparation of this report, but prior to the annual meeting where our supplemental oral report will be presented. Highlights of the committee's activities are as follows: LAND PRESERVATION AND RECLAMATION The committee, through the Association staff, continues to monitor proposed strip mining legislation both at state and federal levels to assure passage of legislation consistent with our methods of industry operations. This task is ongoing and requires the co operation of all plant personnel to alert the Association where new legislation is being considered. ENVIRONMENTAL MATTERS We have in the past reported to the membership concerning an industry air emission study authorized by the Environmental Pro tection Agency and made by Process Research, Inc., which was completed in 1973- As a form of status report, there has been no activity in connection with this study so for the time being, we must conclude that existing emission standards are sufficient to control our in dustry's emissions. SGP 0010421 2- - As reported to you at the semiannual meeting, the EPA con tracted with VerSar, Inc., to produce a study of the gypsum industry in connection with water effluent from mineral extraction, SIC 1492, and the board manufacturing process, SIC 3275- The study has now been completed and final interim standards published. Representatives of the Manufacturing and Mining Committee have reviewed the EPA publica tion and can report that due to the significant committee input into this project, as coordinated through the Association staff, that the final interim standards as published will have no significant impact on our industry operations. Accordingly, several exceptions were in corporated into the final interim standards in the board manufacturing area, SIC 3275, to permit water discharge from any gypsum operation into municipal systems, relieving us of the zero discharge requirement as was earlier anticipated. At the time of our last semiannual meeting, VerSar, Inc. launched still another study into the mineral extraction area, SIC 1492. This time their EPA sponsored study covered rain water run-off and control methods as study focal points. This study, it is rumored, was started by federal court action due to previous blanket exclusions rendered in the initial EPA studies. The contractor's study was com pleted during January of this year and the Environmental Protection Agency is presently reviewing the latest study in an attempt to deter mine whether federal standards should be promulgated to cover this type of discharge from industrial operations. It is the feeling of our in dustry that such environmental regulations should be left to the dis cretion of the states under their land management practice programs, SGP 0010422 3- - under which many of us are presently operating, doing what necessarily has to be done in the control of such run-offs to preserve the integrity of' our properties. Hopefully, the EPA will relegate the enforcement practices to the states to monitor under their Land Management Program. It is anticipated that the EPA will publish the results of this most recent study in the Federal Register shortly. We will attempt to report more timely information on this activity in the oral report. ENERGY As reported at the semiannual meeting, the Gypsum Association in complying with the request of the Department of Commerce to participate in the Voluntary Energy Conservation Program, had compiled energy data covering our industry operations for the years 1970 through 1974, with the average BTU's per MSF of 1/2" gypsum wallboard and total gypsum wallboard produced being reported. The Department of Commerce has once again requested the assist ance of our industry in supplying voluntary energy conservation data for the year 1975. With all wallboard sizes converted to 1/2", the following figures were developed: Quarter Average BTU (mm) per MSF Gypsum Board Total Industry Production per MSF Gypsum Board 1 3.060 2,332,581 2 2.941 2,607,910 3 2.891 2,934,322 4 3.011 2,929,204 This data will be forwarded to the Department of Commerce for inclusion in their next progress report of the industry energy conserva tion programs. SGP 0010423 _/+_ This study, as with the previous industry energy consumption study, has permitted each member company to look closely at energy uses and it is noted that the first quarter and fourth quarter fuel usage in the industry would typically be higher than the second and third quarter usage, to which we ascribe the following reasons: 1. Space heating fuel consumption is included in total fuel usage. 2. Ambient air temperatures have a direct affect on process fuel efficiencies. 3. Lower volumes, usually typical of winter operations, tend to reduce fuel efficiencies by interrupting what may be continuous operations during peak seasons. Inasmuch as comprehensive fuel usage data for the gypsum in dustry as a whole has not been compiled in the past, no reliable informa tion with regard to normal seasonal patterns of fuel usage has been deve1 oped. Mr. Jack Roose, Associate Assistant Administrator, Industrial Programs, at the Federal Energy Administration in Washington, D.C., has been invited to address our committee on April 6, 1976. Mr. Roose plans a brief outline of his organization's activities as they relate to the voluntary energy program, and to present several proposals for additional cooperation by ou :ndustry in this area. As in the past, we will con tinue to advise you of future developments in this area. The Association staff has developed an industry energy guide line for use by the membership in preparing testimoney before state and SGP 0010424 -5- 1 oca I energy regulatory bodies. This guideline has been distributed for industry use. SEVERANCE TAX There has been no reported activity in this area since the semiannual meeting. This activity will continue to be monitored by the Association with appropriate action taken as deemed necessary. SAFETY COMMITTEE LIAISON The Manufacturing and Mining Committee continues to review the Safety Committee programs and recommendations. As reported to you at the last meeting, the Safety Committee did testify on the Dominic Daniels bill H 9318, and is still waiting for public hearings to be scheduled on the Senator Williams bill S 1302. Both bills propose the transfer of Mine Safety functions from MESA to OSHA. The Safety Committee is currently monitoring safety hazard studies in the area of industry carbon monoxide being conducted by Galson Labs of Syracuse, New York for OSHA. At the present time, one member company who has an operation near the Galson Labs is working directly with Galson at their plant location. It is anticipated that OSHA will attempt, following the conclusion of this study, to reduce the carbon monoxide exposure levels from 50 ppm to under 35 ppm. Al though the Association has not been directly involved in this study, as noted earlier the committee members will continue to monitor this activity on an individual basis and report any significant develop ments to the membership as they occur. SGP 0010425 6- - The Safety Committee is also waiting for the final OSHA decision regarding the proposed reduction of the noise level regula tions from 90 dba to 85 dba. Hopefully, a decision will be rendered in the near future, at which time this information will be immediately reported to the membership. MATERIALS HANDLING SUBCOMMITTEE Following this report, the Chairman of the Materials Handling Subcommittee will cover the activities of that group. Highlights of that report are expected to cover future com mittee projects developed at their April 5 committee meeting. New loading specifications covering paper rolls on truck, joint compound pails on truck, and board products on truck are among the subjects which are to be reviewed at the meeting prior to publication In the Materials Handling Manual. TECHNICAL AND BUILDING CODE COMMITTEE LIAISON As in the past, the Manufacturing and Mining Committee will discuss matters of mutual interest with representatives of both Tech nical and Building Code Committees at our April 6, 1978 meeting. The industry metric conversion program and the actions of the task force assigned to this project will be of primary interest to the future activities of the Manufacturing and Mining Committee. Respectfully submitted, Chairman SGP 0010426 MATERIALS HANDLING SUB COMMITTEE SGP 0010427 REPORT OF THE MATERIALS HANDLING SUBCOMMITTEE TO THE MEMBERSHIP MARCH 5, 1976 The Materials Handling Subcommittee will hold its next meeting on April S, 1976 at the Drake Hotel in Chicago, Illinois. This report will therefore highlight the programs that will be covered by the com mittee at the April 5 meeting. AAR LOADING PROGRAM As reported to you at the semiannual meeting, the Materials Handling Subcommittee prepared three suggested loading alternatives to Figure 101, Section 5, and, following approval by the Manufacturing and Mining Committee, had presented our industry's suggested alternative loading methods to the AAR for their further consideration. Mr. N. L. Antle, Director of Rules and :nspections of the Association of American Railroads, advised the Gypsum Association that the Oper Top Loading Rules Committee had rejected all three proposed alternatives to Figure 101, Section 5, as presented. Mr. Antle further staged the committee could see no valid reason for a meeting to review reasons Ccr rejecting the alternatives, and that they were accordingly c'osing their docket on this subject It has been decided that we no1: pursue t'm's matte'' any further with the AAR at this time, although the committee wi 1 continue to monitor this activity. MATERIALS HANDLING MANUAL The committee continues to review and develop updated materials SGP 0010428 2- - for inclusion in our industry Materials Handling Manual. Several committee assignments have now been completed and materials will be reviewed at our April 5 meeting prior to publication in the manual. New subject matters to be incorporated into the Materials Handling Manual will include lift truck fork tines specifications, and loading configurations covering paper rolls on truck, joint compound pails on truck and board products on truck. Metric measurements are being in corporated within the publication where appropriate. MATERIALS HANDLING TRAINING FILM As reported at the semiannual meeting, the industry materials handling training film has been updated with production of a new film covering the loading of rail cars in accordance with AAR Figure 101, Section 5- The new film is 20 minutes, sound/color, 16 mm, and is currently available from the Association office. The committee intends to review various promotional efforts that can be used with the industry plants to encourage the use of the training film by plant loading per sonnel where appropriate FUTURE LOADING PROGRAMS The Materials Handling Subcommittee will explore the optimum loading of motor vehicles under the federal legislation affecting maxi mum allowable truck weights and widths, the state activity in this area, and the affects that weight and width changes have on such truck loading. In addition, the TOFC or piggy back concept of gypsum board loads on flat bed trailers on rail cars will also be an area of committee study. SGP 0010429 3- Current matters of industry importance in the materials handling area, along with proposed future committee activities, will be reported orally at the semiannual meeting. Respectfully submitted, SGP 0010430 SGP 0010431