Document 71Z2LGQ15Xare9ron7yOQdwme

Ethyl Corporation Confidential CONTACT REPORT Company : Socony Mobil Oil Co., Inc. Research & .Development Department Location : New York Date : May 8, 1959 Report by : M. A. Remondino Present : Mr. D. H. Clewell, Mgr. R & D - Mr. E. F. Miller, Res. Coord. Mr. D. P. Heath, Superv.Applied Res. Mr. W. J. Rusher Mr. M. A. Remondino - May l4, 1959 Socony - New York ft If " - Paulsboro Ethyl Corporation - New York Ethyl Corporation - Detroit TETRAMETHYLLEAD KF 0002977 N643) Bill Rusher has had several meetings with E. F. Miller, D. P. Heath and others on the subject matter. Several recent meetings were held to discuss the business aspects of our tetramethyllead program with Socony. Discussions of the business aspects stem from meetings during which Messrs. Murdock, Frey, Murphy, Bailie and Rusher conferred-to determine the best approach with Socony Mobil so as to derive the maximum business advantage from our efforts in this program. In a recent meeting, Ed Miller suggested to Bill Rusher that we get together with Dayton Clewell so that we might bring him up-to-date on our part in this program, and to get the benefit of his counsel as to the next step that should be taken. Today's meeting was held for this latter purpose. Several days prior to this meeting while in Paulsboro on another matter, Bill Rusher was advised by Don Heath that a number of people in the Research Department of Socony had misconstrued the recent discussions concerning the business aspects of the program. Don advised that several people were quite concerned about this, because they got the impression that we were going to use the tetramethyllead pro gram as a wedge to pry more domestic business out of Socony. Bill was advised that this could be a mistake and that it could have deleterious effects on a long term basis. Bill assured Don Heath that the program was not going to be used as a wedge and that any early discussions on the business aspects would simply be held to explore "what might be in it for us" if the program were carried to a successful conclusion. Prior to today's meeting, Bill alerted the writer that we should impress upon Clewell, Miller and Heath that this was not a wedge, simply preliminary discus sions as to what might be forthcoming as a result of our work in this program. At the beginning of today's meeting, Ed Miller briefly outlined the purpose of the meeting, and he and Bill Rusher covered rather briefly some of their earlier discussions. Next it was thought best if we brought Dayton Clewell up-to-date on our part in the tetramethyllead program to date, particularly the technical developments. Clewell was quite familiar with the fuel depreciation problem in foreign cars, the various methods of solving the problem and the economic significance of Socony Mo bil Oil Co ., In c Ethyl Corporation Confidential - 2- May l i t , 1959 developments at our Laboratory and Baton Rouge. We mentioned that because of the chemical and thermal instability of tetramethyllead, a considerable amount of development work has been completed. It was stated that TML could be manu factured and handled safely, and that we had in our plans the possibility of making some commercial quantities available early in i960, or shortly thereafter. We reiterated facts which they already knew, i.e., that some other companies are interested in this development, that our activity in Detroit and Baton Rouge was prompted by interest by these companies, and that we, Ethyl Corporation, were not actively pushing or promoting tetramethyllead as a commercial anti-detonant. Our proposal to discuss the business aspects at this time have been prompted for several reasons. 1. It had been suggested to us, by Paulsboro, that if TML were made commercial, and if it were to be used in the critical areas in Europe and elsewhere, it is likely that TML would have to be manufactured some place in the European Common Market. Construction of a plant there would, of course, require decision at Board level of our Company. 2. We had previously expressed concern about the fact that Socony Mobil Oil Company, Inc. is still a share holder in Associated Ethyl. Our concern is that they might buy very little, if any, TML from us, but instead buy it from Associated because of their interest in that company. The above, of course, is based on Socony's interest in TML being confined to use in foreign gasoline. Ed Miller stated that their interest in Associated Ethyl should not in any way influence us in any plans we might have. He implied that their interest in Associated is so small, and the economic significance of using TML is so great that their interest in Associated will have little, if any effect. I believe this reflects the thinking of the Research Department; it is not known whether it reflects the thinking of top management in the Socony organization. Don Heath stated they are devoting some effort to studies of the performance of tetramethyllead in domestic gasoline and domestic vehicles. They apparently are obtaining some interesting information and expect to do considerably more work as soon as this work can be scheduled. Don also mentioned the fact (and this has been mentioned before) that Socony has not discussed this problem or the possible use of light lead alkyls in Europe to any other lead supplier. Don mentioned they were fully aware that it might be advantageous to Socony to bring into the program both Ethyl and our competitors, but they are stick ing with us, and they like the way the program is going. We pointed out to Dayton Clewell that we were bound by written secrecy agree ments with other companies, and that any of our activities with Socony were being treated as though there was a written se,crecyagreement with them. Ed Miller thought it was significant that we were prepared to produce commercial quantities as soon as i960. He did not realize we were so far along in that part of the program. Dayton Clewell stated that it would be rather difficult to get Socony to make any kind of a commitment on the business aspects of this program at the present time. He said it would be necessary first to carry the program a little further KjF 0002978 Socony Mobil Oil Co., Inc Ethyl Corporation Confidential -3- May l4, 1959 to get seme idea as to whether TML could he commercialized. They would want to see if we have anything first. Clewell stated that as soon as we get some indication or some hope from the medical part of the program, a discussion would he had with top management. Their management would then have to get together for several meetings to bring out into the open all ramifications of use of TML in Europe and other countries where the depreciation problem is critical. It must he remembered that use of TML in Europe would make possible closing down their catalytic cracking facilities or converting them to other uses. There would be some long-range problems in engineering, design, refinery balance, etc. in order to take maximum advantage of this development. For this reason, Clewell stated it would take a number of meetings at high level between a number of departments from several of Socony's operating divisions. Clewell thought the best way to do it would be to wait until we get some indication from the medical program, and if this looks good, the results would be taken to high level in Socony so that discussions could be started. Based on some preliminary testing, Don Heath said that tetramethyllead looks good in some commercial fuels. They plan to study gasoline composition effects and to look into economics of possible domestic use. Don Heath stated they are in the process of writing up detailed descriptions of the several Socony properties they have examined as possible sites for the miniature operation so that the medical experiments can go forward. MAR:ss Mr. H. J. Gibson Mr. D. M, Guy Mr. H. E, Hesselberg Dr. R. A, Kehoe1^ Dr. G. F, Kirby Mr. M. P, Murdock - via W. J. Rusher Mr. w. J. Rusher Mr. R. K. Scales Mr. M. A. Remondino Files 7n M. A. Remondino 0002879