Document KJoaYv9Yyv9XVreRjRkx9XVaw

Monsanto BgSH ..CM . . LC.C.TIO., Cummlng Paton ATE Subject MtFEftCNCt TO November 11, 1971 Revised Therminol FR Conversion Offer Domestic Salesmen and . Sales Managers cc B2SJ B2SL B2SH B2SH B2NK C1NA B2NB T3A B2SG N. T. Johnson T. L. Gossage J. J. Roder D. E. Roush W. B. Papageorge P. S. Park J. R. Savage W. R. Richard c. L. Bradford Our present conversion offers on Therminol FR are: a) Monsanto absorbs return freight on FR fluids. b) Monsanto pays incineration costs of $0.03 per pound. c) Monsanto (sometimes) has supplied free Therminol 55 for flushing the system. d) Monsanto sells refill fluid at much lower prices, l.e. $0.22/lb. for T-66 and $0.095/lb. for T-55. This is too costly to continue in its present form. For ex ample, consider a 2000 gallon FR-1 system being converted to T-55 or T-66. (Assume freight rates of $0.03/lb.) 1. Five drums free T-55 for flushing (FOB cost): 2. Freight on T-55 for flushing: 3. Return fluid freight ('*'27,000 lb. gross): 5. Incineration cost (^ 25,000 lb. net): $253 6b 8bo 750 $W 2000 gallon refill T-55: 15,000 lb. 2000 gallon refill T-66: 17,000 lb. Conversion cost/lb. T-55: Conversion cost/lb.-T-66: $0.127/lb. 0.112/lb. These costs are before the price discount is applied. Even without flushing fluid, the conversion cost is ~'$0.10/lb. for T-55 and $0.093/lb. for T-66. T-55 T-66 Discount FOB price $0.6$5/lb. $0.220/lb. Conversion cost 0,127 0.112 Net FOB ' -51032/lb. 0.108/1b. These net-backs are totally unacceptable. Accordingly we are revising our conversion offers on Therminol FR effective imme diately. The new offer is described in the attached memo. cs Attachment Cummlng Paton 000816b PCB-ARCH0743229