Document G6BYYYvRow5OLpVomQejzqv5n

agenda MEETING OF THE MCA BOARD OF DIRECTORS 5:30 p.m., Wednesday, June 9, 1976 West Virginia Room, The Greenbrier White Sulphur Springs, West Virginia I. Opening Remarks and Introduction of Guests II. Minutes of Meeting of May 11, 1976 III. Business Items (a) Report of the Membership Committee Sun Chemical Corporation, Chemicals Group (b) 104th Annual Meeting and Future Annual Meeting Dates (c) Proposed Board Meeting Schedule for Fiscal 1976-77 (d) Appointment of Committee Members IV. Report of the President (Attachment) (Attachjnent) A brief organizational meeting of the 1976-77 Board of Directors will be held immediately following the Annual Business Meeting (approximately 10:30 a. m. ) on June 10 in the West Virginia Room. Next Regular Directors' Meeting - September 14, 1976, The Madison, Washington, D. C. CMA 037007 1561 1 MINUTES of the two hundred fiftieth meeting of the Board of Directors of the Manufacturing Chemists' Association, Inc. , held in the West Virginia Room, The Greenbrier, White Sulphur Springs, West Virginia, on Wednesday, June 9, 1976, at 5:30 p.m. Directors: Harry D. McNeeley, Chairman Joseph A. Neubauer, Vice Chairman James G. Affleck John R. Hall Dieter H. Ambros John W. Hanley Earle B. Barnes Richard E. Heckert E. E. Chipman Raymond H. Marks John S. Coey Adolph Monsaroff Thomas C. Dabovich H. Barclay Morley Edward Donley Robert T. Powers William J. Driver William S. Sneath J. Morris Evans Harvey J. Taufen Thomas S. Farmer Konrad M. Weis James C. E. Fuller Robert J. Whitesell Edward J. Goett Alternates: Robert P. Barnett (for Edward J. Goett) Werner C. Brown (for Harvey J. Taufen) J. Earl Burrell (for Joseph A. Neubauer) Robert Clabault (for Robert D. Goodall) Howard H. Irvin (for Thomas S. Farmer) Edward R. Kane (for Richard E. Heckert) John J. Lenahan, II (for John S. Coey) Harold S. Mickley (for H. Barclay Morley) Elwood W. Phares, II (for Ralph M. Knight) Toy F. Reid (for Harry D. McNeeley) Robert K. Rigger (for Dieter H. Ambros) Dale J. Shimer (for J. Morris Evans) N. B. Sommer (for James G. Affleck) Outside Counsel: John H. Pickering Staff Counsel: Bruce M. Barackman Secretary-Treasurer: George E. Best By Invitation: William H. Bricker, Diamond Shamrock Corporation Albert C. Clark, MCA John T. Files, Merichem Company John M. Henske, Olin Corporation James W. Kent, Chevron Chemical Company W. C. Krumrei, The Procter & Gamble Company Victor H. Peterson, MCA CMA 037008 1562 By Invitation: (cont'd) George F, Polzer, Witco Chemical Corporation William M. Stover, MCA Eugene J. Sullivan, Borden, Inc. R. A. Winslow, Exxon Chemical Company Chairman McNeeiey opened the meeting by calling for self-introduction of those present in turn. I. MINUTES OF MAY 11. 1976, MEETING Minutes of the May 11, 1976, Board meeting, as distributed, including the financial statement for eleven months ended April 30, 1976, were approved. II. REPORT OF SECRETARY-TREASURER Exhibit A III. BUSINESS ITEMS (a) Report of Membership Committee As chairman, Mr. Hall reported the committee's having examined the qualifications of the applicant named below and recommending election, ON MOTION, duly made and seconded, it was VOTED: That Sun Chemical Corporation, Chemicals Group, be elected to member ship in the Association. (b) 104th and Future Annual Meetings Mr. Best report ed an advance registration of 1068, with representation from 177 member companies. He also reported future Annual Meetings at The Greenbrier confirmed as follows: June 9-11, 1977 June 8-10, 1978 June 7-9, 1979 June 5-7, 1980 June 4-6, 1981 (c) Board Meeting Schedule for Fiscal Year 1976-77 The following schedule for regular meetings of the Board, to take place in Washington beginning at 10:00 a. m. except as otherwise noted was approved: CMA 037009 1563 September 14-, 1976 October 12, 1976 November 22, 1976(1) December 14, 1976 January 11, 1977 February 8, 1977 March 8, 1977 April 12, 1977 (2) May 10, 1977 June 8, 1977 (3) (1) New York City - 3:00 p. m, (2) 3:30 p.m. (3) White Sulphur Springs - 5:30 p.m. Note: By action of the new Board on June 10, the March 8, 1977, meeting will be held in Houston, Texas (d) Appointment of Committee Members were approved as listed in Exhibit B. Appointments (e) Plastics Financial Package Allocations Mr. Driver presented a recommendation of the Executive Committee for approval of three projects proposed by the Plastics Committee. ON MOTION, duly made and seconded, it was VOTED: That the projects described in Exhibit C, D, and E be approved, with funding provided by allocations under the Plastics Financial Package aggregating $38,100. (f) Equal Employment Advisory Council Mr. Driver pre sented a recommendation of the Executive Committee for approval of a con tribution in support of this organization being formed to identify significant principles involved in judicial and administrative disposition of equal employment opportunity issues and to assist in expert preparation and pre sentation of industry views. Such support was proposed by the Industrial Relations Advisory Committee. ON MOTION, duly made and seconded, it was VOTED: That the budget be amended to provide a contribution of $5, 000 to the Equal Employment Advisory Council for 1976, with further support subject to re view of the Council's first-year activities and assessment of value to MCA. CMA 037010 1564 IV. TOXIC SUBSTANCES CONTROL LEGISLATION Mr. Heckert stated H.R. 14032, which he characterized as a workable bill, was reported out of the House Interstate and Foreign Com merce Committee at noon today. He emphasized the importance of making the industry's supporting position clear as the bill comes up for floor con sideration, probably late in July, and in subsequent House-Senate conference. V. SYNTHETIC ORGANIC CHEMICAL MANUFACTURERS ASSOCIATION (SOCMA) Mr. Brown suggested consideration be given to merging SOCMA into MCA, and several other Directors concurred. VI. REPORT OF THE PRESIDENT Mr. Driver's Staff Report is attached as Exhibit F. He referred to a tabulation of legislation of interest to MCA, giving the status as of June 4, * also to "An Analysis of the Chemical Industry in View of Proposals for Decon centration, " copies of both having been distributed to those present. He identi fied the latter as a study commissioned by MCA, the results of which will be held for use by the Association but are available for member company use as well. Certified correct: Harry D. McNeeley Chairman of the Board S' Sk <yV George E. Best Secretary-Treasurer CMA 037011 EXHIBIT A REPORT OF THE SECRETARY-TREASURER June 9, 1976 Dollar amounts rounded from tabular details ($000) INCOME & EXPENSE June 1, 1975 - May 31. 1976 - 12 Months (1007.) Income - Membership Fees - Other $2,748 622 $3,370 Expense Operations Projects $2,566 272 $2,838 Percent of Budget 101.402% 177.714% 110.131% 104.478% 75.766% 100.817% ASSETS (As of May 31. 1976) Cash Investments Miscellaneous $ 17 5,326 8 $5,351 CMA 037012 MANUFACTURING CHEMISTS ASSOCIATION M AmiiNi or HNAM.hi. iiwiitw Mdy 31, 1976 BALANCE SHEET Asset* Ca9h National Savings & Trust - CoomercLai Account National Savings 6 Trust - Payroll Account Imprest Funds $ 10,850 6.000 800 $ 17,650 Investments Bank Certificates of Deposit If. S. Government Securities U. S. Government Agency Securities Corporate Securities Deposits 6 Advances U. S. Government Printing Office American Airlines Travel Advances Postage Meter $ 525,000 1,600,501 690,501 2.510.100 5,326,106 $ 500 625 1,216 6.965 7,126 55,151,082 Liabilities D. C. Use Tax Liabilities & Fund Balances Reserve Deferred Compensation fund Balances Restricted (Schedule I (e)> 1'nrestrlcted - From previous Fiscal Vears - Current Fiscal Year $1,170,474 , 532,066 * $3,567,098 1,702,560 $ 174 61,250 5,269.658 $5,351,082 CMA 037013 INCOME 6 EXPENSE INCOME Membership Dues 6 Entrance Fees $2,748,099 Income from Investments 327,157 Publication Sales 99,864 *(l)Meetlng 6 Special Funds (Schedule l (d)> $ 73,638 Overhead Reimbursement/Subscribed Projects (Schedule I (d)) 121,599 195,237 Miscellaneous 72 Total Income $3,370,429 EXPENSE Management Technical - General Technical - Chemtrec Public Relatlona Government Relations Information Service Office Adminiatration Total Expense *(2) Income less Expense $ 670,776 810,045 213,755 524,333 313,012 69,957 236,465 $2,838,343 $ 532,086 FOOTNOTESi *(l) Het Income on Completed Projects *(2) Total General Program Expense Fiscal Year 1975-76 Budget Program Expense (above) Expenditures from Project Funds carried over from *>previous Fiscal Year (Schedule 1 (c)) $2,838,343 37,844 $2,876,167 CMA 037014 SCHEDULE t RESTRICTED FUNDS & MEETING ADVANCES Carry-Over of Budgeted Funds CR-1 Economic Study Tech X-9 Economic Inpact/Toxic Substances Total - Carry-Over Budgeted Funds Mon-Budgeted Funds & Meetings Meetings, Workshops & Symposia Tank Car Mileage Compensation TEC Audio/Visual Aids CPC Audio/Visual Aids Vinyl Chloride Research - Inhalation Vinyl Chloride Research - Epidemiological Vinyl Chloride Research - Dow Studies Vinylidene Chloride Monomer - Research Styrene Monomer - Research Acrylonitrile Monomer Research Trichloroethylene Research Ethylene Dichloride Research Chlorobenzenes Research Phosgene Safety Research Fluorocarbons Research Allyl Chloride Research Eplchlorohydrin Research Phthalate Esters Research Loss Data Bank Project Patents Monitor q Chemical Industry Trade Advisor Total - Mon-Budgeted Funds & Meetings u 0 Plastics Group Financial Package ' Total Balance June 1, 19/5 (a) $ 2,849 35,000 S 37.844 $ 81,519 24,348 (2,138) (28) 114,282 56,458 178,603 504,547 255,494 84,725 68,478 677,847 9,766 4,434 243 2,278 $2,060,856 $ 85,924 $2,184,624 Receipts (b) $ - $ Current Fiscal Year Expenditures (C) $ 2,844 35,000 $ 37,844 Trana fers To Income (8) $ - $ $ 267.783 66,338 3,754 28 595 684 1,785 148,000 105,587 529,248 353,625 28,620 27.500 71,020 1,886,275 120,120 128,700 49,000 2,286 (243) 37,000 $3,827,705 $ 59,286 $3,886,991 $ 190,100 30,138 745 48,692 33,764 154,090 397,996 180,297 91,871 756 1,278 15,972 48,059 989.213 26 26 26,201 2,107 33,437 $2,244,768 $ 26,668 $2,309,280 $ 72,767 871 - 3,415 2,808 3,018 7,466 1,844 5,238 5,716 7,304 1,668 9,741 69,833 1,400 1,400 748 - $ 195,237 $ $ 195,237 Hay 31, 1976 Balance May 31. 1976 (e) $ - $ $ 86,435 60,548 62,770 20,570 23,280 247,085 178,940 432,139 347,153 104,763 9,860 81.69B 1,505,076 118,694 127,274 31,817 4,613 - 5,841 $3,448,556 $ 118,542 $3,567,098 . SCHEDULE 11 - EXPENSE BITXIFT PROGRAM D-ployeas 1 Authorized OPERATING EXPENSE Salaries & Related Expense Retirement Plan & Croup Ins, Hosp. Ins, & Health Plan Legal Fees A Expense Consultant^Investment Serv, Audit Rent & Premises Expense *(4)iaxes A Insurance Supplies A Gen, Office Exp. Furniture L Equipment Printing Telephone & Telegraph Postage Travel 6 Entertainment Meeting Expense Periodicals, Books, etc. Organizational Memberships Contingency Operating Expense Totals May 31. 1976 MANAGEMENT EXPENSE 12 BUDCJ 1 12 TECHNICAL GENERAL CHENT8EC EXPENSE BUDGET EXPENSE BUDGET 23 7 21 7 PUBLIC RELATIONS EXPENSE 12 BUDGET 12 GOV'T RELATIONS EXPINSE 10 BUDGET 9 INFO SERVICT OFFICE EXPENSE 2 BUDGIE 3 EXPENSE 12 ADM J N BUDGET H I DI AL l<> DA IT 12 MONTHS TXHINSL BlIDGM 78 75 $292,019 $312,400 46,671 65,950 4,68) 3,200 244,355 130,000 5,M2 2,000 $453,118 $425,300 67,061 75,150 9,603 6,250 - 20,000 -* $118,495 $119,050 19,043 17,100 1,240 - 700 - -- $21B,B35 $220,050 35,460 27,750 5,268 3,150 -- -- $172,893 $175,350 27,896 24,600 3,822 2,600 28,228 25,000 -- $ 49,060 *$ 56,550 4,666 19,500 1.157 1,100 -- - $152,452 $1)1,300 25,096 7,450 5,933 2,900 -- -- 51 ,456,892 $11,440,000 226,69) 2)7,500 31,786 19,900 272,583 175,000 5,042 2,800 2,500 17,676 11,606 6, *94 5,788 2,500 17,750 11,050 7,000 2,500 _ 29,792 22,611 24,165 2,375 29,650 20,000 20,000 2,000 _ 7,583 43,728 7,751 2,058 _ 7,700 44,100 3,400 2,000 19,287 12,230 13,397 296 _ 16,800 11.650 9,500 250 _ 12,942 9,956 10,698 1,479 _ 13,100 9,450 7,000 2,500 7,866 2,786 376 52 . 7,800 3,150 800 100 _ 24,674 10,194 10,064 941 - 24,400 9,000 9,500 300 2,500 119,82? 113,111 68.125 12,989 2,500 119,200 109,200 57,200 9,650 4,482 6,625 7,058 7,624 7,093 3,600 6,150 3,500 8,000 12,000 _ 16,777 24,717 21,126 255 1,000 13,300 23,500 26,000 900 1,006 15,834 436 1,162 - 1,000 21,600 1,000 2,000 - 4,592 8,468 42,643 22,539 95 4,200 8,050 45,000 25,000 100 88) 8,116 9,672 11,295 4,266 BOO 6,600 6,500 15,000 5,500 1,292 184 604 - . 1,500 800 1,100 - 1,365 5,659 (1,079) 719 - 1,500 5,200 1,600 200 - 12,328, . 62,991 79,631 65,269 11,709 12,100 63,200 81,900 77,300 18,500 59) 2,586 1,461 500 2,000 5,000 1,496 2,182 - 1,600 2,600 - 364 400 1,503 1,650 9,548 10,000 1,912 1,650 75 100 992 1,000 1,298 2,300 - 50 -- *- -- -- 140 100 15,556 15,900 107 100 7,240 8,950 - 1,461 5,000 $670,776 $597,500 $676,158 $667,250 $713,755 !$220,150 $385,605 $376,950 $313,012 !$306,300 $ 69,957 ;$ 94,100 $236,465 $193,550 $7 ,565,728 $2,455,800 PROJECTS Technical *(2) Air Quality *(l) Occupational Health/Epidemio logy Study Trade Advisor *<2) lister Resources Multl~Coonlttee/Trsnsportation Multl~Coomittee/Publications *0) Economic Impact/Toxic Substances Legislation $ - :> 20,100 625 625 25,000 50,000 24,300 24,300 1,408 5,600 71,995 77,000 10,559 10,800 S - $ 20,100 625 625 25,000 50,000 24,300 24,300 1.408 5,400 71.995 77,000 10,559 10,800 Public Relations Community Relations *(5) Consiaser Information Environmental Quality *{5) Internal Publications Media Relation! College A Hi School Teacher Awards Education Exhibits Education Publications $ 21,397 32,674 27,657 15,388 4,628 12,795 4,009 20,180 21,300 32,000 44,700 25,000 9,800 14,300 4,000 20,000 21,397 32,674 27,657 15,368 4,620 12,795 4,009 20,180 21,300 32,000 44,700 25,000 9,800 14,300 4,000 20,000 __ Project Totals jg COMBINED TOTAL $ - :S $133,887 :$180,225 $ - ;i $130,728 $171,100 S - :s $! $$ $ 272,615 $ 359,325 $670,776 :$597,500 $810,045 :$1355,475 $213,755 :$220,150 $524,333 $548,050 $313,012 $306,300 5 69,957 1$ 94,100 $236,465 $193,550 $2 .8)8,74) S7.8li.Ui *(1) Budget Increase approved by President August 10, 1975, for "Guidelines for k pidemiology Study" $625 *(2) Transfer of Project Funds approved by President September 16, 1975, from "Air Quality" to "Water Resources'* $4,000 Ml) Approved by President for Economic Impact/Toxic Substances Legislation presentation by consultants - budget increase October 9, 1975, $1,900; transfers of funds from "Air Quality" December 10, 1975 $7,000 and March 1, 1976 $1,900, for a total of $10,000 M4) Budget Increase approved by Board of Directors, November 24, 1975, for Chentree Insurance $21,400 *(5) Transfer of Project Funds approved by President October 1, 1975, from "Internal Publications1* to "Consumer Information" $1,000 CMA 037015 APPOINTMENT OF COMMITTEE MEMBERS Exhibit B (a) Engineering Advisory Committee T. E. Cummings, Gulf Science & Technology Company (b) Food, Drug, and Cosmetic Chemicals Committee J. T. Elfstrum, Stauffer Chemical Company (c) Government Relations Committee Don A. Goodall, American Cyanamid Company -- As Chairman* Jeremiah J. Kenney, Jr. , Union Carbide Corporation -- As Vice Chairman* George S. Dominguez, CIBA-GEIGY Corporation John T. Estes, Allied Chemical Corporation E. Hamilton Hurst, Nalco Chemical Company James E. McEvoy, Air Products and Chemicals, Inc. Thomas F. Mitchell, Georgia-Pacific Corporation (d) Industrial Relations Advisory Committee Carl DeMartino, E. I. du Pont de Nemours & Company (e) International Trade Committee George O. Trabue, Jr., Eastman Chemical International Company -As Chairman* (f) Legal Advisory Committee Robert H. Bidwell, Exxon Chemical Company* Keith W, Blinn, Continental Oil Company* Leon C. Holt, Jr., Air Products and Chemicals, Inc.* (g) Plastics Committee A. Ross Adams, Air Products and Chemicals, Inc. Robert C. Schroeder, Celanese Plastics Company (h) Tax Policy Committee Theodore F. Killheffer, E. I. du Pont de Nemours & Company (i) Transportation Equipment Committee R. E. Gates, Shell Chemical Company (j) Water Resources Committee T. F. Champion, NIPRO, Inc. S. N. Robinson, Mallinckrodt, Inc. R. J. Samelson, PPG Industries, Inc,, Chemical Division A. E. Slesinger, M&T Chemicals Inc., Subsidiary of American Can Company R. C. Sterrett, Ashland Chemical Company, Division of Ashland Oil, Inc. __________ * Effective June 1, 1976 ___________________________________________ CMA 037016 nvrD 2- - Insurance Committee Fred W. Ingham, Union Carbide Corporation Peter F. Lopez, Celanese Corporation William F. Quinn, Jr., Engelhard Minerals & Chemicals Corporation Douglas L. Truesdell, Foote Mineral Company David D. Ward, Air Products and Chemicals, Inc. ########## BD-6/9/76 CMA 037017 Exhibit C 1 Proposed Allocation under the Plastics Financial Package Key-Sort Decks -- Flammability Testing of Polymers In conjunction with the research study on the "Flammability Testing of Polymers" conducted for MCA, and separate from the final report yet to be submitted, Stanford Research Institute (SRI) developed a key-sort deck -- a comprehensive catalogue of existing standard and ad hoc flammability tests -- capable of being eas ily revised and updated. Five sets have been prepared, three of which are on file at MCA for information and review. Considering the key-sort deck as an excellent source of information on flammability testing, the Plastics Committee recommends that arrangements be made for the purchase of one set (not to exceed $200 each) for each company participating in support of the Plastics Group studies. The total dost of $11,600 would be provided from the budgeted unallocated reserve of the Plastics Financial Package. Although originally indicating intent, SRI has not finally decided to undertake production of sets for general sale. If not available for purchase from SRI, the Committee further recommends alternate arrangements be investigated. Staff concurs with the recommendation. * MCA EC - 6/9/76 BD - 6/9/76 CMA037018 Exhibit D Proposed Continued Joint Research on Plastics Combustion Products and Their Toxicity funded under the Plastics Financial Package Jointly with The Society of the Plastics Industry (SPI), MCA is currently supporting a research program being conducted by The University of Michigan on "The Analysis and Toxicity of the Combustion Products of Natural and Synthetic Materials." Although the de velopment work has proceeded slowly, indicative results are beginning to emerge. The Plastics Committee recommends MCA, jointly with SPI, continue to support the research being con ducted by The University of Michigan until June 1, 1977. MCA's portion (50%) of funding for this extension of the project will be $20,000, provided from the budgeted unallocated reserve of the Plastics Financial Package. Staff concurs with this request. * MCA EC - 6/9/76 BD - 6/9/76 CMA037019 Exhibit E Proposed Allocation under the Plastics Financial Package Plastics Waste Management Update The Plastics Committee, with staff concurrence, recommends appropriation of $6,500 from the budgeted unallocated reserve funds, available in the Plastics Financial Package for 1976-77, to engage DeBell & Richardson, Inc. (D&R) to conduct an update of informa tion on plastics in relation to solid waste treatment and disposal, previously completed by D&R for publica tion by MCA: "Solid Waste Management of Plastics" (1970) "Plastics Waste Disposal Practices in Landfill, Incineration, Pyrolysis and Recycle" (1972) "Plastics Waste Management" (1974) h MCA EC - 6/9/76 BD - 6/9/76 CMA 037020 Exhibit F STAFF REPORT by William J. Driver June 9, 197$ We announced on May 27 our support of a House toxic substances control bill, H.R. 14032, sponsored by Representatives Bob Eckhardt (D-Tex.) and James T. Broyhill (R-N.C.). The new bill replaces H.R. 10318, specific provisions of which we seriously objected to. The bill appears to focus the resources of industry and government on the most pressing problems. The impact of the legislation will depend on how it is administered by the Environmental Protection Agency. In a letter to Rep. Eckhardt notifying him of our support, I stated that we were grateful for his cooperation and willingness to compromise. At the same time, I warned that our support for the revised bill was given with considerable concern that the construc tive changes in the substitute bill could be negated by additional, damaging amendments at any of the remaining stages of the legislative process. * ** The Senate Public Works Committee is marking up S. 2150, the proposed Solid Waste Utilization Act of 1975. The version under consideration is much more satisfactory to industry than previous bills, but there is some question about provisions of the hazardous waste disposal control section. We hope these questions can be resolved to our satisfaction in later markup sessions. The House Transportation and Commerce Subcommittee (Interstate and Foreign Commerce Committee) continues to work on their second solid waste draft and expects to release it by the end of May. The first draft was issued in December, 1975. It was much more comprehensive than the original Senate bill and more controversial. Because of adverse reaction, the revised draft is expected to be toned down substantially in order to attract more support. * ** On very short notice, MCA participated in hearings before the House Manpower and Housing Subcommittee of the Committee on Govern ment Operations on May 12. In addition to general oversight on controlling toxic substances in the workplace, the committee wanted to discuss disclosure of all ingredients in products entering the workplace. Union representatives and others argued that a complete CMA 037021 2 listing of contents should be on all labels. Our position, presented by Emil E. Christofano, chairman of the Occupational Health Committee, is that labels should disclose the nature of the hazards and the presence of hazardous ingredients, as well as give warnings to avoid exposure. This already is being done by companies following MCA guidelines, which follow the new ANSI standard that is based on MCA's Guide to Precautionary Labeling of Hazardous Chemicals. Also appear ing were C. J. O'Connor, chairman of the Labels and Precautionary Information Committee, and Dr. H. J. Kolodner, chairman of the Safety and Fire Protection Committee-. *** The Department of Transportation granted a 30-day extension of the time allowed for commenting on amendments that consolidated the regulations governing transportation of hazardous materials. MCA had asked for 90 days. Some amendments were found contrary to company experience, some were in conflict with other amendments and some were considered incomplete. The deadline now is June 14. As an example of its criticism, MCA presented recommendations on May 20 concerning errors in authorized shipping names, requirements for loading drums and a more realistic approach to setting effective dates implementing the amendments. MCA also presented to the Materials Transportation Bureau recommendations for combination safety relief devices on tank cars and trucks containing hydrogen chloride. *** Winner of the Lammot du Pont Safety Award for 1976 in the category of companies working more than two million manhours: Exxon Chemical Company, with a 61 percent reduction in the injury frequency rate. Runner-up was American Cyanamid Company, with a 48 percent reduction. Winner among companies working less than two million man hours was Virginia Chemicals Inc. with a 61 percent reduction, while SunOlin Chemical Company had a 59 percent reduction. *** We continued to seek modifications in the proposed amendments to the Clean Air Act, particularly in section 113 (g). If the changes are enacted, they would require retrofitting all existing facilities within the particular air quality region in which a change in operation was planned. MCA also supports Sen. Frank Moss' amendments to S. 3219 which delete section 6, the "no-growth" section, and establish a national study commission. The commission would report on changes in non deterioration provisions within one year. ** CMA 037022 T 3 Six senators who have fought bitterly over natural gas price deregulation have joined forces and introduced a compromise bill calling for partial deregulation. It remains to be seen, however, whether this latest initiative will break the legislative impasse and spur a new law in Congress. After lengthy negotiation, the bill was introduced by Sens. James B. Pearson (R-Kan.), Ernest F. Hollings (D-S.C.), Adlai E. Stevenson III (D-Ill.), Warren G. Magnuson (D-Wash.), Henry L. Bellmon (R-Okla.) and Paul^J. Fannin (R-Ariz.). Sens. Pearson, Bellmon and Fannin had been strong advocates and sponsors of broad price-deregulation proposals, while Hollings, Magnuson and Stevenson had strenuously fought such proposals. The key provisions of the compromise are: Offshore natural gas would continue permanently under federal price regulation when sold interstate. New discoveries of on-shore gas would continue to be controlled for seven years, but the current 52-cent maximum would be raised to $1.60 (with a cost-of-living escalator) retroactive to discoveries from Jan. 1, 1976. Gas sold within the same state in which it is produced would continue free of price regulation. The use of natural gas for "boiler" fuel--low-priority industrial uses for which other fuels can serve--would be phased out over 10 years. . ** The Senate Finance Committee began markup of tax reform/ tax reduction legislation on April 27 and should finish by early June. During t;he past three weeks, the Committee has dealt with tax shelters and other provisions-which have little impact on the chemical industry. The Committee is scheduled to take up foreign income and capital formation matters the latter part of May. When the Senate begins debate on a tax bill, a group of tax reform-minded Senators led by Senator Edward Kennedy (D-Mass.) is expected to introduce a number of amendments contrary to busin ss interests. These probably will include proposals to repeal DISC, the Asset Depreciation Range System, deferral of taxation of income of foreign subsidiaries and the percentage depletion allowance for hard minerals. There may be other proposals to restrict the use of the foreign tax credit and to prevent the extension of the 10 percent investment tax credit. CMA 037023 T 4 There are indications that about 25-30 Senators will support the tax reform amendments and that an equal number will oppose them. This leaves a block of 40-50 Senators who are presently uncommitted. In a speech to a combined meeting of the Air and Water Quality Committees in Washington on May 12, Russell W. Peterson, head of the Commission on Environmental Quality called for a "detente1* between industry and environmental groups. Fourteen member company representatives gave 51 video and 61 radio interviews to 33 broadcasters at the annual meeting of the American Women in Radio and Television in Philadelphia May 5-8. MCA participation in the meeting was arranged by the Consumer Infor mation Subcommittee, and the suite was staffed by 15 members of th subcommittee and the Public Relations Committee. More than 400 of the convention's 650 registrants visited the MCA suite. Dewey A. Kunze has been appointed to the MCA staff as secretary and staff representative of the Transportation and Distribution Committee. Mr. Kunze has been with Rohm and Haas as assistant traffic manager, and with Merck and Union Carbide. D. Miller Simpson retired as librarian on May 31 after 22 years with MCA. He will be succeeded by Jane Rasmussen, who has been a librarian in private industry and at the American School in Iran. ] CMA 037024 I