Document 93Q9Ygar4wkpoGQeyq6r2X6RV

THE SOCIETY OF THE PLASTICS INDUSTRY, INC. 250 park avenue NEW YORK, NEW YORK 10017 212/573-9400 July 14, 1975 TO: AD-HOC VCM FEEDING GROUP RE: ASSESSMENT FORMULAS FOR VCM FEEDING STOW Gentlemen: Trying to devise an equitable formula is a very difficult proposition. Shown below are several proposals. All of the proposals will require some disclosure of confidential sales information to our dues auditor. Proposal One Divide the cost one-half to resin suppliers and one-half to fabricators using the resin poundage for packaging and pipe. Proposal Two Equate one pound of monomer to one pound of resin. Assess everyone on the poundage produced or used, i.e. a monomer manufacturer produces one pound of monomer, a resin supplier produces one pound of resin and a processor uses one pound of resin. We therefore have a comm basis for assessment. Proposal Three Arbitrary split of the total cost of one-half to rasln producers and one-half to resin users based on volume. Size Small Medium Large Total Share Units 1 2 3 Polymer Producer up to 200 naa lbs. 200 to 400 over 400 1/2 or 2/3 Polymer User up to 20 ns lbs 20 to 40 over 40 1/2 or 1/3 SPI-05439 -2- The production volume numbers used above can be ascertained based on confidential reports to the SP1 dues auditor. This formula could be based on total production of PVC or that portion used in packaging and pipe. After we have determined the size slot for each supporter, ve can determine the total units for each group and divide this into the total dollar share for that group to determine the dollar value per unit for producers and for users. For example, the total cost o the project is $775,000 and we have 50 supporters pledges as follows: 15 small 20 medium 15 large 15 units 40 units 45 units 100 units Then each unit is worth $775,000 4 100 " $7,750 and each small user's share is $7,750; medium is $15,500 and large is $23,250. In any of these proposals, we have not taken into account the potential support of stabilizer, additive, suppliers, etc. Perhaps, a flat fee commensurate with the interest could be established. These are some formulas we devised with the assistance of the members. We need an approved one today, so that we may begin the process of soliciting support. T. J. McGrath SPI-05490