Document GKV43Q8Eb0qaYV3xZjKNGvMzq

Proposed Studies on the Risk of Benzene-Induced Diseases in China Page 2 Costs: The estimated costs for the project were derived after careful consideration of all of the technical, ethical, and political issues. (inflation has been incorporated into the estimate). Total Cost Estimate (2001 U.S. Dollars) Seed Monies Study Costs Case-Control Study Disease Progression Study Molecular Epidemiology Study Hematological Laboratory in Shanghai External Communications Other Costs (Administrative, Travel, Ethics Panel, Scientific Oversight Panel) GRAND TOTAL $500,000 $1,761,000 $3,494,000 $3,275,000 $8,340,000 $1,000,000 $1,341,000 $19,713,000 :Funding: Funding for the project will be handled by a consortium of interested stakeholders, with shares determined by size of the benzene related operations of the contributing organization. The proposed funding formula was devised based on the assumption that most of the support will come from the petroleum and petrochemical industries. It is anticipated to take five years to complete the project, and that the costs will be highest in the first years of the project. Proposed Funding Formula Share Determination Shareholder Category Shares U.S. Refiner (based on U.S. refinery capacity)* Small (::::: 500,000 bbl/day) 1 Medium (>500,000 and::::: 1,500,000 bbl/day) 2 Large (> 1,500,000 bbl/day) 3 Non-U.S. Refiners (no U.S. refineries) 1 Free-Standing Chemical Co. (No refineries) 2 Upstream Company (No refineries) 1 Other (trade association, government, NGO) Negotiable '~U.S. refmery capacIty wIll be determmed based upon refmery ownership as of October 1, 2000. Capacity will be calculated using the Oil and Gas Journal's 2000 Pennwell Directory. Example Funding for One Share By Project Year:;: Study Year Percent of Costs Cost Per Share 1 30 $422,400 2 25 $352,000 3 15 $211,200 4 15 $211,200 5 15 $211,200 Total: $1,408,000 *Assumes that there are a total of 14 shares at approximately $1,408,000 per share. Costs per share may increase or decrease dependent upon participation level (i.e., total number of shares). For more information contact: Lorraine Twerdok (API) at (202)682-8344 ortwerdokl@api.org; or Patrick Beatty (Chevron) at (510)242-7037 or pwbe@chevron.com SH ELL-MCCLU RG-059653