Document 6jwZNeQgB2xVYNjXxyEZM1zR

V Hooker Chemical PLASTICS DIVISION Firestone Blvd P.0. Box 699 Pottstown, PA 19464 215 / 326-2000 TO: MR. R. K. RAUSCHER BATON ROUGE FROM: J. R- HOPPER POTTSTOWN DATE: JUNE 22, 1981 * RECEIVED c, * JUN 2 5 1981 ACCTG. DEPT. RECEIVED - JUN 2 9 198] ACCIC. DEPT. SUBJECT: DOW VCM METERING PROBLEM Per the attached please confirm the volume differences as proposed by Dow. If you are satisfied have your local management initial approval and return to me for Divisional approval. OCC 017070 4 !k DOW CHEMICAL U.S.A. June 19, 1981 BARSTOW BUILDING 2020 DOW CENTER MIDLAND. MICHIGAN 48640 Mr. Jin Hopper Purchasing Manager HOOKER CHEMICAL AND FLASTICS CORPORATION Pottstown, PA 19464 RE: VCM CONTRACT NO. 26898 received JUN221981 J. R. HOPPER The following are comments frcrn a meeting held in Plaquemine, Louisiana on Nfe.y 1 between Hooker and Dow plant personnel. The objective was to discuss VCM volume differences through the pipeline measured by our companies separate metering systems. Dow's third party testing results conducted this year were also reviewed. Based on the discussions it is mutually understood that there will be some degree of difference in our measurements based on: Expansion of VCM in the pipeline based on temperature differ ences. Also, seme quantity my not be picked up by your meters at low flow rates. 2. Calibration limitations - Meter manufacturers state that practical limitation on metering accuracy is .5%. 3. Other factors including the use of temperature conversion charts, monthly "meter drifting" and possible by-passes in the line were discussed. A joint recermendation was made to resolve past volume differences based on the reports and discussions of personnel involved in the transfers. Final resolution has been held pending clearance of your April deductions and a reconcilation by cur Customer Financial Services Group. A debit memo will be Issued for $23,843.86 pending your final approval^ This amount is based on the following: 478,008 lbs. - Hooker deductions frem invoices - 337,750 lbs. - Negotiated deductions based on 50% of the total difference between Hooker and Dow meter readings (675,500 lbs.) 140,258 lbs. x $.17/lb - $23,843.86 debit memo Attachment I is background information reconciled with Bob Roucher on May 7. AN OrtHATTNO UMT OP THK DOW CHKiMCAL COMPANY OCC 017071 i Mr. Jim Hopper June 19, 1981 Page Two In the future we plan to continue our third party validation testing of our two turbine line meters to help insure accurate measurements. Your plant may be in the process of coordinating a similar third party test at your end of the pipeline. These tests, along with frequent cormunication between our plants, will keep us alerted to any significant differences in measurements. From a practical standpoint the operations personnel feel that accuracy of .5% on a monthly basis is within equipment capability and welcome the opportunity to periodically demonstrate the sufficiency of the stystem. Future billings will continue to be based on procedures outlined in our contract. We appreciate your support in resolving these past differences and look forward to you visiting Plaquemine in the near future. Thank you for your continuing business. Vrsirs t.ml v. John W. Boss Product Sales Manager Inorganic Chemicals Attachment (1) OCC 017072 ATTACHMENT I HOOKER VCM QUANTITY MONTH NOV *00 DEC '80 JAN *81 PEB 81 MAR '81 APR '81 DOW INVOICE 11,614,300 r^y 17,244,600/^ 6,924,700^ 12,164,700/iK 16,913,200/^ 1 ,552,500 66,414,000^ HOOKER READING (.MONTHLY ) DIFFERENCE 11,502,200 17,098,500 6,810,300 12,038,900 16,752,700 ** * 1 .535,900 65,738,500 112,100 146,100* 114,400 125,800 160,500 16,600 675,500 * DIFFERENCE 0.965 0.853 1,412 1 .034 0.958 1 .069 1 .01 HOOKER DEDUCTION FROM INVOICE 77,510 ^ 94,710 +/ 69,162 a/ 90,652 ^ 115,089 ^ 30,885 478,008 Per Bob Roucher 5/7/81 OCC 017073 JWB/ml:5/5/81