Document LgMYvGNR32rq1o75yMMNXznN7

A Division of The Society of The Plastics Industry Inc. FE& 1" flSl January 31, 1991 Mr. M. Donohue Manager, Chemnet Chemical Manufacturers Association 2501 M Street, N.W. Washington, D.C. 20037 Re: Proposal To Establish VC Network and Budget Dear Mike: Enclosed is a draft of the program material John Coburn and I prepared which is to be mailed prior to the February 27th meeting of the Vinyl institute Executive Board. Also enclosed is a draft of an estimated budget for 1991. In an effort to anticipate questions as to what costs may be if the network undertook the activities identified on page 3, I discussed with John the estimated ranges. These are really rough figures that are meant to demonstrate to potential participants that the second year costs might be 3 to 4 times greater than first year expenditures. John and I would appreciate having from you and your colleagues your "best guess" of first year costs if such a group were to be organized as a Chemstar Panel. I trust that you understand that this is not intended to be a "bidding war". Rather, for the company representatives to make this type of policy decision, th budget estimate numbers are obviously a minor part of the issue. I would appreciate some feedback by February 8th (either to John or me) in whatever format you wish. On a personal note, I want to thank you, Alma and Susan for th time you have contributed to this effort. Sincerely yours, MNS/pmb cc: J. Coburn F. Borrelli CMA 110450 Wayne Interchange Plaza If 155 Route 46 West Wayne, NJ 07470 (201} 890-9299 Fax 0(201) 890-7029 DRAFT TO: Executive Board Health, Safety & Environment committee Ad Hoc Task Force on Vinyl Chloride Mutual Aid Network RE: Proposal to Establish a Vinvl Chloride Mutual Aid Network 1991 Program Background In his capacity as Chairman of the Institute's Health, Safety and Environment Committee, Frank Borrelli presented a proposal to establish a vinyl chloride specific mutual aid network at the Institute's Executive Board meeting on December 12th. That proposal had been prepared by an ad hoc task force that had been meeting with VI and CMA staff sharing administrative respon sibility. As you will recall, at the December 12th meeting, the Executive Board agreed in principle that such a network be established. Additionally, the Board asked the task force to prepare a proposed program for 1991 with a tentative budget. The task force, under the chairmanship of John Coburn of OxyChem, met on January 9, 1991. A list of attendees at this meeting is attached. The following material was developed at this meeting and will be the subject of discussion at the February 27, 1991 meeting of the Executive Board. To facilitate internal company review and discussion in advance of the February 27th meeting, also attached is a list of the members of the Executive Board and of the VI Health, Safety and Environment Committee. I- PROGRAM PROPOSAL FOR 1991 - ORGANIZATIONAL STRUCTURE A. Full Committee A committee of all U.S. vinyl producers would be formed. The principle objectives of this committee would be to develop and finalize a formal agreement under which a vinyl chloride specific mutual aid network would operate. In addition to the agreement, the committee would be CMA 110451 2 responsible for the development of formal operating statement and rules, incident reporting procedures and follow-up procedures. As follow-up to the January 9th meeting, CMA circulated to the meeting attendees copies of the ChemNet Agreement, as well as copies of th Phosphorus Emergency Response Team (PERT) Agreement. CMA staff suggested that the latter might serve as an appropriate model for a vinyl chloride network. The full committee would also oversee the activities of the 3 subcommittees. It is estimated that a total of 3 or 4 meetings would be needed to finalize these docu ments . B. Subcommittees Three subcommittees were suggested: 1- Routing and Territories Responsibilities of this subcommittee would include an examination of currently-used routes and mechanical contractors and an assessment of existing emergency responsibilities including company territorial responsibilities. It is estimated that two meetings during 1991 would be necessary, with additional requirements of staff and counsel involvement in the collection of confidential information. 2. Equipment (Railcars) This subcommittee would inventory all cars and equipment currently used. It is estimated that one meeting will be necessary. The long term goal of this activity would be to assure that all cars in service can accept identical/compatible repair kits so that they could be appropriately serviced by the responder and/or identify those that cannot accept such repair kits. 3. Emergency Response Resources This subcommittee would a) develop an inventory of company equipment, b) develop an inventory of all rail members, contractor, and responders and responders and contractors, and c) assess all currently-used training materials by and for all audiences served for assessing network work plan for future years. It is estimated that this subcommit tee would have 3 meetings during 1991. CMA 110452 3 II.GOALS FOR 1992 AND BEYOND The following were identified by the task force as possibl activities to undertake during 1992: The development of training materials such as pamphlets, brochures, etc. - Production of video Conduct hands-on training program(s) for major re sponders . Spotting of repair equipment where needed (may require equipment purchase). Examine international requirements which currently imped responding to incidents in North America and work to overcome these restrictions. III. COST APPORTIONMENT METHODS The task force discussed two ways in which costs would be apportioned among the participants. Plan A - 75% of the cost would be apportioned on the basis of percentage of ton miles shipped by rail. - 25% of cost would be equally shared by all par ticipants. Recognizing that vinyl producers ship vinyl chloride cars, Planlb^was discussed. Plan B - All user companies should be tied into the program from the beginning of the program at a rate of 25% of the total of budget. - The remaining 75% of the budget would be apportioned on the basis of percentage of ton miles shipped by rail. IV.PROPOSED BUDGET FOR 1991 As the Executive Board had not determined under which organization this activity would be organized, the following list of budgetary requirements was devloped to be used by the VI and CMA staffs in estimating what a budget for the first year might be. It should be noted that expenses would be expected to be higher in 1992 assuming that the goals listed above were carried out. 1. Preparation for, attendance at, and follow-up on all subcommittee and full committee meetings. It is CMA 110453 4 estimated that there would be a total of 10 meetings during 1991 served by staff and/or counsel. 2. Support services necessary at level appropriate to serv committee (ex. secretarial, mail costs) as well as services related to budget, including monthly reports and all dues procedures. 3. Collection through staff, with appropriate assistanc from counsel, of all relevant materials needed to assist the work of the committee. This would include items such as an inventory of routes used, railcars used, repair equipement inventory, and ton miles shipped by individual--y companies. 4. Meeting and travel expenses for a maximum of ten meetings during 1991 at out-of-office locations with ten attende s each. The VI and CMA budget estimates are to be included in the briefing book for the February 27th meeting. John Coburn, Task Force Chairman Meredith scheck. Vinyl Institut CMA110454 AD HOC VINYL CHLORIDE MUTUAL AID TASK FORCE ATTENDEES JANUARY 9, 1991 MEETING BORDEN Richard Wagner Borden P.I.P. 180. East Broad Columbus, OH (614) 225-4628 Street, 43214 24th Floor DOW Vergel Perry Dow Chemical Building OC-1120 Freeport, TX 77541 (409) 238-2653 WH GEORGIA GULF John Klimavicz Georgia Gulf PO Box 629 Plaquemine, LA (504) 389-2725 70764 BFGoodrich Frank H. Soliman BFGoodrich Co. Box 527 Calvert City, KY (502) 395-3249 42029 OCCIDENTAL John Coburn Occidental Chemical 300 Berwyn Park Berwyn, PA 19312 (215) 251-1088 5^3 PPG INDUSTRIES, INC. Gerry Jordan PPG Industries, Inc. PO Box 1000 Lake Charles, LA 70601 -.( 318) 491-4452 1/ T M cj VISTA CHEMICAL Mike Kerlegon Vista Chemical PO Box 19029 Houston, TX 77079 (713) 588-3564 70 FORMOSA PLASTICS Michael Karlis T Formosa Plastics 9 Peachtree Hill Road Livingston, NJ 07039 (201) 716-7381 ' CHEMICAL MANUFACTURERS ASSOCIATION Michael Donahue (202) 887-1188 Alma Howard (202) 887-1263 Susan Howe (202) 887-1293 2501 M Street, NW Washington, DC 20037 VINYL INSTITUTE Meredith Scheck Vinyl Institute Wayne Plaza II 155 Route 46 West Wayne, NJ 07470 (201) 890-9299 CMA 110455 VINYL INSTITUTE EXECUTIVE BOARD J. Alan Bailey Occidental Chemical Corporation 300 Berwyn Park, Suite 300 Berwyn, Pennsylvania 19312 Phone: (215)-251-1078 Fax: (215)-251-5828 Bruce Duerringer Kaneka Texas Corporation 17 South Briar Hoilown Lane, Houston, Texas 77027 Phone: (713)-840-1751 Fax: (713)-552-0133 #307 Robert Margevich Akzo Chemicals Inc. 300 South Riverside Drive suite 2200 Chicago, Illinois Phon : (312)-906-7500 H. R. Flammer (Chairman) Vista Chemical Company P.0. Box 19029 Houston, Texas 77224 Phone: (713)-588-3520 Fax: (713)-588-3129 Rob rt Kelly CertainTeed Corporation 750 East Swedesford Road P.0. Box 860 Vail y Forge, Pennsylvania 19482 Phone: (215)-341-7177 Fax: (215)-341-6837 Don Knechtges BFGoodrich Company 6100 Oak Tree Boulevard Cleveland, Ohio 44131 Phone: (216)-447-6380 Fax: (216)-447-6211 Jerry Koral Atochem, N.A. 3 Parkway Philadelphia, Pennsylvania 19102 Phone: (215)-587-7186 G. E. (Woody) Miller GE Specialty Chemicals UNB Square 5th and Avery Streets Parkersburg, West Virginia 26102 Phone: (304)-424-5411 Donna Magill PPG Industries Inc. One PPG Place Pittsburgh, Pennsylvania 15272 Phone: (412)-434-2355 - Fax: (412)-434-4578 Ed Martinelli (Secretary) BFGoodrich Company 6100 Oak Tree Boulevard Cleveland, Ohio 44131 Phone: (216)-447-6592 Fax: (216)-447-6592 Nelson Stefany Rohm and Haas Company Independence Mall West Philadelphia, Pennsylvania 19105 Phone: (215)-591-6820 Fax: (215)-591-2285 Willem Prinselaar European Vinyls Corporation Boulevard du Souverain B-1160 Brussels, Belgium Phone: 011-322-674-0960 Fax: 011-322-660-1181 CMA110456 .Executive B ard R star Fag ` Two John L. Russ (Vice Chairman) Borden Chemicals & Plastics FVC Operations P.O. Box 427, Highway 73 Geismar, Louisiana 70734 Phon J (504)-673-0674 Fax: (504)-673-0672 William H. Shoun Dow Chemical Company 2020 Willard H. Dow Center Midland, Michigan 48640 Phone: (517)-636-0353 Fax: (517)-636-3495 Edwin Schiffer (Treasurer) Georgia Gulf Corporation P.O. BOX 105197 Atlanta, Georgia 19312 Phone: (404)-395-4560 Fax: (404)-393-2597 William F. Patient BFGoodrich Company 6100 Oak Tree Boulevard Cleveland, Ohio 44131 Phone: (216)-447-6547 Fax: (216)-447-6146 Robert Noble Exxon Chemical Canada P.O. Box 69 Sarnia, Ontario, Canada N7T 7H8 Phone: Fax: Erv Schroeder Shintech Inc. 5618 Highway 332 East Freeport, Texas 77541 Phone: (409)-233-7861 Fax: (713)-482-2140 Victor struber Argus Division, Witco Corporation 520 Madison Avenue New York, New York 10022 Phone: (212)-605-3664 Fax: (212)-486-4198 Ing. Gonzalo Sandino s. Petroquimica Colombiana, S.A. Calle 8 B No. 68-25 Bogota, Colombia Phone: 2622811, 2618163 Fax: 2627502 James Rash PW Resin P.O. Box 10049 Eugene, Oregon 97440 Phone: Fax: , Leonard Kranskopf Exxon Chemical 4999 Scenic Highway Baton Rouge, Louisiana Phone: Fax: 70821 CMA 110457 VINYL INSTITUTE HEALTH, SAFETY * BNVIR< COMMITTEE Frank E. Borrelli (Chairman) Georgia Gulf Corporation 42 c Reads Way Newcastle Corporate Commons Newcastle, Delaware 19720 Phone: (302)-323-8116 Fax: (302)-323-8105 P ter de la Cruz Keller and Heckman 1150 17th street, N.W. Washington, D.C. 20036 Phone: (202)-956-5600 Fax: (202)-296-7682 Art Gellner CertainTeed Corporation P. O. Box 253 Sulphur, Louisiana 70663 Phon : (318)-882-1441 Fax: (318)-882-1516 Clark Graybill PPG Industries Inc. P.O. Box 1000 Lake Charles, Louisiana Phone: (318)-491-4221 Fax: (318)-491-4766 70602 W. c. Holbrook BFGoodrich Company 6100 Oak Tree Boulevard Cleveland, Ohio 44131 Phone: (216)-447-7925 Fax: (216)-447-6146 James W. Kachtick Occidental Chemical Corporation P.O. Box 849 La Porte Road Pasadena, Texas 77501 Phone: (713)-884-4110 Joseph King Occidental Chemical Corporation P.O. Box 699 Axmand Hammer Boulevard Fottstown, Pennsylvania 19464 Phone: (215)-327-6749 Fax: (215)-327-6551 Joseph Ledvina Vista Chemical Company P.O. BOX 19029 Houston, Texas 77224 Phone: (713)-531-3446 Fax: (713)-531-3236 Cris Lunn Borden Chemicals & Plastics P.O. Box 427 Geismar, Louisiana 70734 Phone: (504)-673-0622 Fax: (504)-673-0496 Robert Oubre Dow Chemical Company Building oc-1120 Freeport, Texas 77541 Phone: (409)-238-9455 Fax: (409)-238-9694 John Yonge Shintech Inc. 5618 Highway 332 East Freeport, Texas 77541 Phone: (409)-233-7861 Fax: (713)-482-2140 Don Pearson PPG Industries Inc. P.O. Box 1000 Lakes Charles, Louisiana 70602 Phone: (318)-491-4930 Fax: (318)- 8/90 CMA 110458 1991 BUDGET ESTIMATE FOR MUTUAL AID NETWORK The following estimate for network activities is based on a maximum of ten meetings with a maximum of ten attendees at each meeting. PROFESSIONAL STAFF o Meeting Related .r ' r V'. ?* ~ ' -r 1 day of preparation 1 day of attendance + 1 day follow up 3 days per meeting X 10 meetings * 30 days . _____ 30 days out of total of 260 work days *1.39 man months 1.39 X $60,000 base - $6950 o Additional time of 1 day per month (.55 man months) at $60,000 base - $2750 SUPPORT STAFF 1 day per month (.55 man months) at $25,000 base* $1146 MAILING COSTS # o Meeting Related: Mailings to include advance planning, agenda and minutes of each meeting * $110 o Dues related mailings to include ton miles survey and two asssessment mailings, assuming ten participants* $9.00 o Minimum of two monthly mailings to ten participating companies * $156 TRAVEL FOR ONE STAFF PERSON TO TEN MEETINGS OFFSITE o Airfare = $700 o Hotel/Travel realted expenses * $200 $900 per trip for ten trips * $9000 MEETING EXPENSES Assuming ten meetings in hotel locations, with cost to include meeting room and working lunch: $500,`per meeting x 10 meetings = $5000 - ______ " ,. ___ r; ' -yp ; - _r . rjr-' .':?i CMA110459 -2- SPBTOTAL EXCLUSIVE OP LEGAL + $25.121 o Estimate of legal costs $10,000 o Contingency budget of 10% * $3,500 TOTAL ESTIMATED EXPENSES FOR 1991 - $38,500 1992 BUDGET ESTIMATES FOR PROJECTS IDENTIFIED In trying to anticipate questions regarding estimated costs beyond 1991, staff worked with task force chairman to identify range of costs that may be expected for projects identified: PROJECT COSTS o Development of training materials o Video o Hands of training (based on recent experience at the Burlington Fire Academy) - Assume 4 sessions at costs of 30-35 people o Purchase and spotting of equipment (5 units at 5 sites) $15,000 - $40,000 20,000 - 30,000 * 30,000 - 35,000 20,000 - 25,000 SUBTOTAL/PROJECT $85,600 -$130,000 Continuing costs (staff time, legal expenses, meeting related costs, etc.)would needed to be added. If you assumed administrative expenses equivalent to the first year of $38,500, the total would be in the range of $125,000 to 170,000. CMA 110460