Document BR7NeL1EKjx55pNzKBErMy2dJ

Law Offices Keller and Heckman llp lOOl G Street. N.W. Suite 500 West Washington, D.C. 20001 Telephone (202) 434-4100 Facsimile (202) 434-4040 25 Rue Blanche B-1O0O Brussels Telephone 32(2) 541 05 70 Facsimile 32(2) 541 05 SO WWW.KHLAW.COM JOSEPH E. KELLER <1907-1994] JEROME H. HECKMAN WILLIAM H. BORGHESANI. JR. WAYNE V. BLACK TERRENCE D. JONES MARTIN W. BERCOVICI JOHN S. ELDREO RICHARD J. LEIGHTON ALFRED S. REGNERY DOUGLAS J. BEHR RAYMOND A. KOWALSKI MICHAEL F. MORRONE JOHN B. RICHARDS JEAN SAVIGNY0 JOHN B. DUBECK PETER L. de LA CRUZ MELVIN S. OROZEN LAWRENCE P. HALPRIN RALPH A. SIMMONS RICHARD F. MANN C. DOUGLAS JARRETT SHEILA A. MILLAR GEORGE G. MtSKO RECEIVED NOV 3 o 2000 0C-. sL/CL&g DAVID I. READER PATRICK J. HURD DAVID G. SARVADI CATHERINE R. NIELSEN MARK MANSOUR* ELLIOT BELILOS JEAN-PHILIPPE MONTFORT* ARTHUR S. GARRETT 111 JOAN C. BAUGHAN MARTHA E. MARRAPESE JUSTIN C. POWELL GEORGE BRENT MICKUM. IV ELIZABETH N. HARRISON JOHN B. RODGERS LESA L. BYRUM PETER A. SAARI* NEGIN MOHTADt NICOLE B. DONATH DAVID R. JOY DAVtD J. ETTINGER FREDERICK A. STEARNS TODD A. HARRISON JOHN F. FOLEY TONYE RUSSELL EPPS THOMAS C. BERGER RACHIDA SEMAIL* R. HOLLAND CAMPBELL JOHN DOBINSON* DANIEL QUINTART*0 KOMAL J. HERSHBERG MANESH K. RATH OEVON WM. HILL N. A JOY MATHEW JOANNA R. SOFFA PAMELA L GAUTHIER COLLEEN M. EVALE ANN M. BOECKMAN SANA D. COLEMAN DEBORAH W. ZIFFER* JEFFREY A. KEITHLINE MICHELLE L. OAUPHINAIS* FRANK J. VITOLO D. PATRICK LEWIS JENNIFER B. BENNETT* CAREN A.C. GRAU* LUTHER L. HAJEK* SHANNON M. HEIM* CHRISTIAN C. SEMONSEN* NOT ADMITTED IN D.C. RESIDENT BRUSSELS SCIENTIFIC STAFF DANIEL S. DIXLER, Ph. D CHARLES V. BREDER. Ph. D. ROBERT A. MATHEWS. PH. D., D.A.B.T. HOLLY HUTMIRE FOLEY JANETTE HOUK. Ph. D. LESTER BORODINSKY. PH. D THOMAS C. BROWN MICHAEL T. FLOOD, PH. D. ANNA GERGELY. PH. D STEFANIE M. CORBITT JUSTIN J. FREDERICO, PH. D. ROBERT J. SCHEUPLEIN, PH D RACHEL F. JOYNER ELIZABETH A. HEGER TELECOMMUNICATIONS ENGINEER RANDALL D. YOUNG ---- WRITER S DIRECT ACCESS November 29, 2000 VIA FEDEX (202) 434-4248 garrett@khlaw. com Charles B. Cappel, Esq. Baggett, McCall, Burgess & Watson 3006 Country Club Road Lake Charles, LA 70605 Re: Ross, et al. v. Conoco. Inc, et al. Dear Mr. Cappel: We are forwarding you the document labeled SPI-17357-SPI-17394. A former SPI employee with whom we have been working to respond to recent discovery issues in the various vinyl chloride litigation in which SPI is involved informed us that he had an original document relating to the inception of the Vinyl Institute in 1983 and its future. This former SPI employee does not have any other documents related to his employment with SPI. SPI produces this document out of an abundance of caution not knowing for sure whether a copy of it has previously been produced. Please give me a call if you have any questions or concerns. Enclosure c: A. R. Johnson, IV, Special Master Douglas J. Behr CONFIDENTIAL The Vinyl Institute FUTURE PROGRAM and PLAN Prepared for the Executive Board of The Vinyl Institute by Roy T. Gottesman Executive Director Date: August 1, 1983 A Division of THE SOCIETY OF THE PLASTICS INDUSTRY, INC. 355 LEXINGTON AVENUE NEW YORK, N.Y. 10017 (212) 573-9400 SPI -17357 INDEX Page Objectives ................................................................................................................................... 1 Mission Statement ................................................................................................................. 2 Requirements for Successful Realization of Mission .................................... 3 Identified Issues and/or Problems ....................................................................... 4-13 I. Need for a Cohesive Affiramative Comprehensive Strategy . 4 II. Fire Safety/Flammability/Combustibility of PVC .... 5 III. Permeability of PVC Pipe.......................................................................6 IV. Interaction withGovernmental Bodies ........................................... 7, 8 V. Codes and RegulatoryActivity ........................................................... 9 VI. Medical/Health Effects/ToxicologyImpacts............................................. 10 VII. Development of a Technical Base for Promotion and/or Defense of PVC.............................................................................11 VIII. Coordinated Cooperative Effort with Other Trade Associated Groups ................................................................................. 12 IX. Other Issues with Longer RangeImpact .................................................. 13 Publics to be Reached.......................................................................................................... 14 Resources Needed .................................................................................................................... 15-19 I. Building of Membership..................................................................................... 15, 16 II. Staff........................................................................................................................ 17 III. Budget; Financial Considerations .................................... . . 18 Appendices A, B, C^ D and E Mission Statement of Vinyl Institute Committees SPl-17358 1 Objectives The objectives of this Future Program and Plan for The Vinyl Institute are to: Identify issues and problem areas and present an action program to address these. Prioritize these programs and estimate a time schedule for accomplishment. Evaluate the financial and manpower resources necessary to accomplish the program. Identify other factors that impact on the Institute's operation and need consideration. SPI - 17359 -2- Mission Statement The mission of The Vinyl Institute is to: Identify, prioritize and respond to problems and issues of potential concern relating to the vinyl chloride and polyvinyl chloride industries. Be a spokesman for the industry. Be an advocate for long-term development of PVC products. Interact with other trade associations including coordina tion with other divisions of SPI. This mission statement is based on the Purpose of the Institute as given in Article II of the Bylaws (See Appendix A) and has both near-term and longerterm components. Near-Term Activity This activity must of necessity be largely defensive and is aimed at neutra lizing, defusing or negating attacks on PVC as they relate to safe manufacture, use and handling of industry products. Included are activities involving the fire and combustibility of PVC, leaching of potentially toxic materials from PVC pipe, and the permeability of materials into PVC pipe. Response t<? such attacks must be rapid, coordinated and focused. Longer-Term Activity Longer term, Institute programs must take on an offensive pro-active stance and include the following: Educational programs aimed at the various publics that the industry must reach, viz. the fire fighting community, news media, direct customers, employees, academic opinion leaders and the general public. Influencing legislative and regulatory activity that could affect the industry. Interacting with code setting agencies and local code officials to assure that PVC products are not excluded from suitable end applications. Promoting PVC for new product development. SPI -17360 -3Requirements for Successful Realization of The Vinyl Institute* s Mission Successful realization of the mission of The Vinyl Institute is dependent on: Accurate identification of issues and problem areas. Development and implementation of action programs to address each issue. Delineation of resources needed for accomplishment of these programs including financial commitment and necessary manpower. SPI -17361 -4- Identified Issues and/or Problems I. Need for Cohesive Affirmative Comprehensive Strategy A. Concerns Identified 1. While certain individual issues are being addressed, there is currently no single comprehensive and cohesive strategy to overcome the attacks on PVC as related to safety of the product. 2. A single-minded "copy platform" or message that should serve as the peg for an offensive communications program is needed. B. Program 1. Develop a platform from which The Vinyl Institute can take the offensive in an all-out communications campaign to get across to the various affected publics the message that PVC is a safe product. 2. Based on this "copy platform" coordinate the activities of the various institute committees so they are unified in approach and prompt in response. C. Responsibility for Implementation of Program 1. Item 1 Recommendations for "copy platform" requested from Doremus & Co. by July 20. Development of action plan by August 16, 1983 at Communications Committee Meeting. 2. Item 2 Continuing effort with Executive Director coordinating activities of all Vinyl Institute Committees. Committee meetings are to be scheduled on at least a quarterly basis. To encourage inter-com mittee interaction, whenever feasible, two different committee meetings will be scheduled on successive days with cross-attendance encouraged. SPI -17362 -5II. Fire Safety/Flammability/Combustibility of PVC A. Concerns Identified 1. Combustion toxicity of gases generated (lethality of HC1). 2. Smoke generation. 3. Plastics (including PVC) burn hotter, faster. A. Building or structural component integrity. B. Program 1. Assemble and organize all known facts, reports, studies, statistics related to each of the fire/flammability/combustibility identified. Interact with knowledgeable "publics" who can contribute. 2. Determine where "gaps" in information exists. 3. Develop program to obtain missing information. A. Organize information (either available or obtained in action program) for dissemination to affected publics. C. Responsibility for Implementation of Program 1. Items 1, 2 and 3 - Technical Committee; Southwest Research Institute Program. 2. Item A - Communications Committee working with Public Relations consultant - Doremus & Co. SPI - 17363 -6- III. Permeability of PVC Pipe A. Concerns Identified 1. Largely due to the attacks from plumber's unions in California, plastic pipe and PVC pipe in particular are being attacked as un safe materials. It is alleged that such piping is subject to permeation by solvents that may be present in the soil in which the pipe is embedded, thereby resulting in contamination of water being transported in such piping. 2. These attacks, if unchallenged and unanswered, could lead to legislation and regulatory action detrimental to the PVC industry. 3. Any action in California could lead to comparable legislation/ regulatory action in other states and jurisdictions. B. Program 1. Carry out andcomplete pipe permeation project at Battelle Institute in which jointed (containing gaskets) and straight pipe sections of asbestos/cement, PVC and ductile iron pipe are being exposed to toluene, trichloroethane or hexane impregnated soil. 2. Develop plan for communicating results of Battelle program in California via press releases and/or news conference. 3. Interact with key legislators on this problem to assure that they understand that the alleged permeation of PVC pipe is not with the material of construction, but rather with the gasketing material and pipe joints which serve as a pollutant enter point. The problem is one of soil pollution and contamination and is not related to piping material. C. Responsibility for Implementation of Program 1. Item 1 Technical Committee - Results to date are providing very satisfactory data. Report by August 15 Technical Committee Meeting. 2. Item 2 Being developed by Communications Committee in coordination with Executive Director and public relations contact in California. May be desirable for this to be handled via SPI since other plastic pipe interests could also be affected. 3. Item 3 Either via SPI California lobbyists or VI should identify a lobbyist to carry forth this program. Needs further consideration. SPI -17364 7 IV. Interaction with Governmental Bodies (Legislative and Regulatory Agencies) A. Concerns Identified 1. Necessity for continued interface with environmental agencies (EPA and state level) with regard to environmental laws and regulations that affect the EDC/VCM/PVC industries. 2. Necessity for continued monitoring of Occupational Safety and Health Administration (OSHA) activities related to employee and safety and health. 3. Necessity for interaction with Consumer Products Safety Commission (CPSC) as it relates to the fire safety/combustibility issue. 4. Necessity for continued liaison with Food and Drug Administra tion (FDA)/Bureau of Alcohol, Tobacco and Firearms (BATF) aimed at clearance of the PVC liquor bottle. 5. Desirability to establish a "working relationship" with the National Bureau of Standards (NBS) so it can provide technical input into fire research/flammability projects at Southwest Research Institute (SwRI). B. Program 1. Monitor local, state and federal legislative or regulatory activities in the environmental, health and safety areas. 2. Develop and present technical information to appropriate governmental and regulatory officials to assist them in develop ment or revision of applicable laws and regulations affecting the industry. 3. Establish liaison with Consumer Products Safety Commission (CPSC) on their plans and programs in the fire safety/combustibility area. Cooperatively with SPI's Polyurethane Division, attempt to get CPSC to help sponsor program in forensic toxicology at St. John's University. 4. Provide survey information on food contact uses of PVC and its copolymers to FDA to aid it in preparing a PVC standard under the constituents policy. This will include information on types of food that are or reasonably could be packaged in PVC and the amount of resin that might be used for such packaging. BATF is apparently waiting for the constituents policy to be issued by FDA before it takes action on the Petition by SPI for "Generic Approval of Polyvinyl Chloride as a Suitable Material to Package Distilled Spirits." 5. Meet with NBS and SwRI to establish appropriate working relationship. SPI -17365 -8- C. Responsibility for Implementation of Program 1. Items 1 and 2 - Ongoing activity of Manufacturing Practices Committee and legal assistance from Keller and Heckman. 2. Item 3 - Executive Director with Staff Director of SPI's Polyurethane Division (Pat Toner). 3. Item 4 - Continued activity being carried out by Keller and Heckman. 4. Item 5 - Initial meeting held with NBS/SwRI and Technical Committee Task Force on July 14, 1983. SPI -17366 -9- V. Codes and Regulatory Activity A. Concerns Identified 1. There is currently no organized activity for interfacing with code bodies in establishing acceptable standards and codes for PVC uses. B. Program 1. Establish a Codes and Regulatory Committee charged with the following mission: a) Establish a current data base of codes and standards. b) Monitor activities of code bodies (viz. IAPMO, ASTM, NSF, AWWA, BOCA etc.) and government agencies (HUD, DOT, FHA). c) Monitor state legislative activity using SPI resources for broad coverage. d) Supply additional information on state regulatory activity by structuring an information network supported by PVC users and others. e) Assume an active role in working with appropriate agencies in seeking code modification to enlarge the permitted use of PVC under codes under that agency's jurisdiction. C. Responsibility for Implementation of Program 1. Executive Director is arranging for organizational meeting of this newly established committee to be held on August 23, 1983. SPI -17367 10 - VI. Medical/Health Effects/Toxicology Impacts on the Industry A. Concerns Identified 1. Establish if any long term adverse health effects result from HC1 emissions evolved in PVC fires. 2. Determine if long term adverse health effects occur from exposure (via inhalation or skin absorption) of residual vinyl chloride monomer. 3. Establish whether potentially harmful or toxic substances can be extracted from PVC products such as piping, medical appliances or in food packaging applications. B. Program 1. Establish Medical Subcommittee within Technical Committee to develop recommendations and action plan. 2. Allocate resources and implement action plan. C. Responsibility for Implementation Program 1. Item 1 - By August 15, 1983 Technical Committee Meeting. 2. Item 2 - Technical Committee - Target date: November 15, 1983. SPI -17368 - 11 - VII. Development of a. Technical Base for Promotion and/or Defense of PVC A. Concerns Identified 1. There currently is no central data base containing the total library of data and information to refute spurious information being advanced by PVC opponents. Likewise, a central data base is needed for use in either litigation or in promotion of the product. 2. The central document and information data base must be structured to afford prompt, ease, and responsive access. B. Program 1. Collect data and publish technical "white paper" on PVC combustion. 2. Publish in-depth paper on PVC safety. 3. Provide technical base that will be useful in litigation and/or in product promotion. C. Responsibility for Implementation of Program 1. Item 1 - Technical Committee (for data collection). Completion targeted for July 31. Thereafter, the Communication Committee will write the paper which will be reviewed by the Technical Committee with the finished product targeted for completion by September 15, 1983. 2. Item 2 - Technical Committee -- actions and responsibility to be assigned at August 15, 1983 meeting. 3. Item 3 - Technical/Legal Committees. This is being carried out at Battelle Institute with the test prototype scheduled for completion by August 27, 1983. The data base should be loaded and readable by November 1, 1983. This is initially aimed at providing support in fire litigation cases. SPI -17369 - 12 - VIII. Coordinated Cooperative Effort with Other Trade Association Groups A. Concerns Identified 1. The potential for problems exist in several areas (fire safety, plastic pipe) due to the multiplicity of trade associa tion groups involved with the attendant possibility for frag mentation and lack of cooperation. 2. Duplicate efforts could be avoided by merging of some of these groups and would result in better management control and probable economic savings. B. Program 1. Identify all trade association groups having an input/ interest in the PVC industry. Establish liaison and convene an early meeting with such groups to establish areas of mutuality of interest where initial cooperative efforts should be under taken. 2. Consider incorporating "Ad Hoc Resin Producers Committee" into Vinyl Institute at an early date. 3. Incorporate Vinyl Chloride Safety Association into Vinyl Institute's Manufacturing Practices Committee. 4. Evaluate incorporation of other SPI divisions and/or groups into The Vinyl Institute, viz: Vinyl Film Group Vinyl Formulators Division Vinyl Siding Institute Vinyl Window and Door Institute C. Responsibility for Implementation of Program 1. Items 1 - Already underway by Executive Director. 2. Item 2 - Executive Director to make recommendations to Executive Board. 3. Item 3 - On Agenda for August 4, 1983 meeting of Vinyl Institute Manufacturing Practices Committee. 4. Item 4 - Recommendation by Executive Director prior to 1984 - 1985 fiscal year. SPI -17370 - 13 - IX. Other Issues with Longer Range Impact on the VCM/PVC Industry A. Concerns Identified 1. Other longer range issues not currently identified or under consideration (such as fire safety/health concerns) may have an even greater impact on the PVC industry than those now receiving attention. 2. These "other" issues need to be identified and a program developed to consider them. B. Program 1. Augment the Technical Committee with other knowledgeable, creative people to brainstorm other issues. 2. Carry out "brainstorming session" at Vinyl Institute Technical Committee Meeting on August 15, 1983. 3. Develop program based on brainstorming session and communicate to Vinyl Institute Executive Board. C. Responsibility for Implementation of Program 1. Item 1 - Technical Committee Chairman O'Mara. Target date August 1, 1983. 2. Item 2 - Technical Committee Meeting on August 15, 1983. 3. Item 3 - Technical Committee Chairman O'Mara and Executive Director - before September 21, 1983 Executive Board Meeting. SPI -17371 14 PUBLICS TO BE REACHED Dependent on the issue and/or problem identified, one or more of the following groups needs to be approached and reached: Fire Service Personnel Administrators Training Leaders Fire Fighters Media Print - Newspapers and Magazines Trade and Professional Publications General Public Media Legislators Local/State/Federal Regulators State/Federal Medical Examiner/Coraner Community Code Setting Bodies Building Officials Architects Specifiers Direct Customers and Distribution Chain Home Builders Employees Academic Opinion Leaders 9 Other Trade Association Executives 9 General Public Citizen Groups Equally important is the identification and enlistment of potential allies from the above group of publics. SPI -17372 15 RESOURCES NEEDED I. Building of Membership The current membership of The Vinyl Institute numbers ten (10) companies who, for the fiscal year beginning June 1, 1983 and ending May 31, 1984, have assessed themselves a total of $746,000, which represents the approved fiscal year budget. Additional membership is needed for the following reasons: The Institute can only legitimately be the "voice of the PVC industry" if all major companies are members. Additional members would provide additional funding for Institute programs. The current funding level limits the Institute in the extent that it can underwrite technical research or public relations/communications programs. Additional members will provide additional "volunteer" personnel for the various Institute committees. Current membership categories as permitted by the Bylaws are shown in Appendix B. a) Regular Membership Based on the current understanding arrived at with SPI during the formation of The Vinyl Institute, membership in SPI is not a requirement for membership in the Institute. However, a company not de siring to join SPI but wishing to join The Vinyl Institute would be obli gated to pay the Institute, in addition to their normal Vinyl Institute dues, an amount equal to the dues they would have had to pay to SPI had they joined it. As It has become apparent that this is a detriment in at tracting certain nonmember companies who, for various reasons, do not want to join SPI, it is recommended that the Executive Board consider renegotia tion of this understanding with SPI. As it is not an advantage to either SPI or The Vinyl Institute if a company joins neither organization, it is recommended that SPI permit non-SPI member companies to join The Vinyl Institute provided that the Institute rebates to SPI a fixed amount (e.g. 25% but not to exceed $10,000) which that company would pay as its normal dues to The Vinyl Institute. b) Associate Memberships At its last meeting, the Executive Board agreed to extend an invitation of membership to foreign manufacturers of VCM and PVC and set a membership fee of $20,000 per fiscal year. Because of similar considerations regarding SPI membership, a letter ballot was sent to the Executive Board SPI -17373 - 16 to determine the Board's preference for either the fee to be $20,000 plus the applicable SPI membership fee or whether the $20,000 should include the applicable SPI membership fee which the Institute would rebate to SPI. Following receipt of the Board's direction on this, a campaign to solicit foreign members will be started with both European and Japanese producers. A candidate list of companies to be approached is being developed. c) Affiliated Memberships This is a new category of membership not now specifically permitted by Institute Bylaws. Eligibility and a recommended schedule of Membership Fees is given in Appendix C. It is proposed that this item be acted up by the Executive Board at its September, 1983 meeting and, assuming the Board's approval, that a candidate list of potential affiliated members be drawn up so that membership solicitation can be initiated during the last quarter of 1983. SPI -17374 17 RESOURCES NEEDED (continued) II. Staff At the present time, the paid staff of the Institute is comprised solely of the Executive Director and secretary. Based on the following key activities that the Executive Director is engaged in: Development and implementation of an aggressive communications/public re lations program. Coordination of activities involving the various functioning Institute Committees. Organizing the Codes and Regulatory Committee and establishing its program. Broadening membership base. Coordinating Vinyl Institute activities with those of other divisions of SPI and other trade associations having mutual interests, it is recommended that approval be given to the Executive Director to recruit and add a second person to the staff to provide assistance in some of these areas but particu larly to concentrate in organizing and accelerating the program in the area of Codes and Regulatory matters. No further staffing is currently recommended for fiscal year 1983-1984. Coincident with submitting the 1984-1985 fiscal year budget, the Executive Director will, at that time, evaluate any further staffing needs and make any recommendations deemed necessary. The approved budget for fiscal 1983-1984 (see Appendix D) includes the sum of $125,000 which is meant to cover "Salary and Benefits Costs for Executive Director and Secretary." Based on actual current salaries and the SPI benefits package (budgeted at 23% of salaries), there will be an excess of $21,500 in this account. Assuming that a second staff person is approved for hire at a salary in the area of $45,000-$50,000 and that such an individual is hired by December 1, 1983, the cost during fiscal year 1983-1984 would be: $Annual Salary X 1.23 X 7 * 0.7175 X $ Annual Salary 12 Thus, if the salary is in the $45,000 to $50,000 range, costs for both salary and benefits in fiscal 1983-1984 would be in the $33,000 to $36,000 range. With a projected excess of $21,500 in the staff salary and benefits account, the net additional funds needed would be $11,500 to $14,500. It is recommended that a sum of $15,000 from the contingency budgeted amount of $115,000 be allocated to the Vinyl Institute staff account and the approval be given for recruiting to hire a second staff member. SPI -17375 18 - RESOURCES NEEDED (continued) III. Budget The budget for fiscal year 1983-1984 is shown in Appendix D and totals $746,000. There is no experience yet in assessing the adequacy of this budget to support the program of the Institute. Certainly, the public relations program is limited due to minimal funding. It is realized that three major PVC producers are not yet members of The Vinyl Institute. Assuming that their 1982 estimated PVC capacities are used, and they paid the same assessment as current Vinyl Institute members have assessed themselves, this could result in a minimum of an additional $131,000 of revenue. Company Estimated PVC* Capacity Assessment Formosa Plastics 825 $ 50,884 Georgia Pacific 700 43,175 Shintech, Inc. 600 37,006 $131,065 * Does not include any VCM capacity. Further, as associate memberships are offered to foreign producers of VCM and PVC at $20,000/fiscal year, The Vinyl Institute could look forward to additional revenue in the area of $100,000 should only six companies be successfully recruited for associate membership. This is a modest goal. Thus, additional revenue in the area of $250,000/year is not unrealistic if membership recruiting efforts are aggressively pursued and could lead to an overall financial budget availability in the $1 million/year area. It also points up the necessity for pursuing the three domestic PVC producers who are not yet Vinyl Institute members as well as initiating the associate membership program. SPI -17376 APPENDIX A Purpose of The Vinyl Institute The purpose of The Vinyl Institute as given in the Institute Bylaws (Article II) is as follows: 1. Serve the best interests of the public by providing socially valuable products. 2. Cooperate with all private, industrial, and governmental bodies in the advancement of the Industry, its employees, and the public. 3. Represent and be the speaking organization for the Industry. 4. a) Promote the expanded use of PVC; b) Interact with other trade associations to use all available resources efficiently; c) Identify all issues of potential concern to the vinyl chloride and polyvinyl chloride industry (the "Industry") relating to Industry products involving political bodies, litigants, competing industries, or others; d) Prioritize and effectively deal with these issues. 5. Support reasonable regulations, meaningful standards, and foster truthful communications in order to develop and establish recommended practices for the safe manufacture, use, and handling of Industry products of all types. 6. Assure that the Industry is represented competently in all Industry matters coming before governmental agencies, regulatory bodies, and other concerned groups, regarding any question about Industry products, especially questions concerning the safety of their use and manufacture. 7. Provide, support, and stimulate, as desirable, organized research, testing programs, education, and development of information re lating to the safe manufacture, handling, and use of Industry products of all types. 8. Study and identify the properties of Industry products, and establish methods of accurately measuring and identifying such properties with the objective of improving the manufacture, performance, and public acceptance of them. 9. In cooperation with recognized standards-making bodies, participate in the development and promotion of standards of quality and safety in the production, use, and application of Industry products. 10. Compile and disseminate technical, statistical, and other data of interest to the Industry, the public, and governmental bodies, particularly information relating to safe practices and uses of Industry products, and in formation aimed at enlarging opportunities for expanding the use of such products in a manner consistent with the bests interests of the Industry and public in general. SPI -17377 APPENDIX B VINYL INSTITUTE MEMBERSHIP CATEGORIES 1. Regular Memberships Eligibility: Any U.S. manufacturer of vinyl chloride or polyvinyl chloride. Membership in SPI - It is desirable that all Vinyl Institute members be encouraged to join SPI if they are not already members. However, if they are not members or do not wish to join SPI, they can still be accepted as members of The Vinyl Institute providing that, in addition to their VI dues, they would pay to The Vinyl Institute an amount equal to the dues they would have paid to SPI had they joined it. This additional amount would not be rebated to SPI, but would be kept for Vinyl Institute operations. Thus, there is no financial advantage to a company not belonging to SPI as they would pay the same amount whether or not they joined SPI. Membership Fees in The Vinyl Institute For SPI members Based on the 1983-1984 approved budget, the fee for regular members is based on the formula: X (A + B) X 61.678 - $ where n = number of months remaining in fiscal year (June 1, 1983 - May 31, 1984) A * rated capacity for VCM (million lbs.) B = rated capacity for PVC (million lbs.) Example: A = 500 million lbs. B = 400 million lbs. Company joins September 1983 -jy- (500 + 400) X $61,678 * $41,632.65 For Non-SPI members Wishing to Join SPI Non-SPI members would pay to SPI, in the first year of membership, 50% of what would be their normal SPI dues which are based on "net total sales to the plastics industry." This would be in addition to The Vinyl Institute membership dues calculated as above. SPI -17378 APPENDIX B (continued) 2. Associate Memberships Eligibility; Any foreign manufacturer of vinyl chloride or polyvinyl chloride. Membership in SPI - Same considerations as for Regular Members, EXCEPT THAT 50% INTRODUCTORY DUES DOES NOT APPLY. Membership Fees For SPI Associate Members $20,000 fee per fiscal year to the Vinyl Institute + $5,000 (max.) Associate SPI membership fee. For Non-SPI Associate Members If the company does not elect to join SPI coincident with joining The Vinyl Institute, the fee would be $25,000 payable tothe Vinyl Institute. SPI - 17379 APPENDIX C Affiliated Memberships This would be a new membership category which would require amendment of The Vinyl Institute By-Laws. The amendment would need to be approved by the SPI Board of Directors. Eligibility; Any U.S. or foreign company involved in producing raw materials for manufacture of vinyl chloride and/or polyvinyl chloride polymers, adjuvants (stabilizers, plasticizers, antioxidants, etc.) used in processing PVC, or finished products fabricated from PVC. Membership in SPI - Same considerations as for Regular or Associate Members unless company would not otherwise be eligible for SPI membership. Membership Fees For SPI members $2,000 per fiscal year to Vinyl Institute + normal membership fee to SPI. For Non-SPI members If Company is not eligible to join SPI, affiliated membership would be extended at $2,000 per fiscal year. For companies that are not SPI members (but are eligible for membership), $2,000 + amount-equivalent to normal SPI membership fee, payable to The Vinyl Institute. SPI -17380 APPENDIX D SOCIETY OF THE PLASTICS INDUSTRY VINYL INSTITUTE PROPOSED BUDGET JUNE 1, 1983- MAY 31, 1984 EXPENDITURE CATEGORY BUDGET AMOUNT Legal Services Keller <Sc Heckman Fire Expert Retainer Computerized Litigation Documents Communications Program $ 60,000* 25,000*2) 46,000 150,000*3) Technical 'i Information Gathering Identify Technical Programs y Health Effects Testing " - SWRI Fire Testing 105,000 Maintenance of PVC Toxicology Computerized Bibliography 5,000 Bateile Solvent Migration Testing 90,000 Meetings 4,000 Postage, Printing, Mailing 1,000 Staff Travel Vinyl Institute Staff Contingency 20,000' 125,000*^) 115,000*3) TOTAL $ 746,000 Assessments: First 50% on June 1, 1983. Second 50% when needed, estimated to be January, 1984. 7/01 SPI -17381 APPENDIX D (continued) Footnotes (1) Legal support focusing on EPA, FDA, and OHSA issues. Program and expenditures to be monitored by Legal Committee. (2) Subject to Executive Board final approval to assure desired objectives can be met. (3) Total Communications Committee proposed budget is $220,000. Funds have been included in the contingency category as a management allowance requiring Executive Board approval for specific programs exceeding the $150,000 budget. (4) Salary and benefits cost for Executive Director and secretary. Funds for hiring and relocation are included in the 1/1/83 - 5/31/83 budget. (5) Size of contingency based primarily on $70,000 for communications and $45,000 for technical programs requiring Executive 3oard approval when better defined. Contingency would be available for any program needed to meet Vinyl Institute objectives upon Executive Board approval. SPI - 17382