Document MMZJz720qwYMLeEKkr0zdyNoa

Dn chemical u.sjC. /T; OC: ftldms. " Tr xas oi vision FRFtPQIU, 1CXAS 7?!>41 Ab'tn^ Joseph M. Griffin Legal Department 47 Building MIDLAND April 12, 1976 PLAINTIFFS EXHIBIT DOW-150 cc: R. L. Buell F. D. Hoerger D. J. Roberts ASBESTOS - WORK PRACTICE HISTORY - TEXAS DIVISION In response to your telephone call on March 11, I have reviewed the information in our files and am forwarding copies of seven items that reflect our understanding of the health hazards of exposure to asbestos and actions taken to minimize employee risk. Perhaps this will help you in your effort to determine Dow's liability risk from employee exposures to asbestos. If review of this information generates further questions I will be happy to try to answer them for you. m I have omitted the Asbestos Handling Policy for the Texas Division Chlor-Alkali plants. I understand that the ChlorAlkali Tech Center is including this in their compilation of information for you. co --I o CD CD ro QO cn bbs Enclosures (7) R. L. Daniel Environmental Health Services AN OPERATING UNIT OF THE DOW CHEMICAL COMPANY Enclosure - 1 C ( ASBESTOS AND HEALTI-I Asbestos is an extremely useful mineral in our society--having more than 3, 000 different applications. Early in this century, a scarring disease of the lungs called "Asbeslosis" was discovered. Control standards were established and, to my knowledge, no case of "classical" advanced asbestosis has occurred at our Company. This disease brought early death, usually in less than 20 yr after first exposure. Though there is no reason to believe we have ever exceeded the timeweighted average recommended for control of asbestos-containing dusts, it has now become apparent that these people exposed to the lower levels will develop various other forms of "asbestos disease" after a lapse period of . E0 to 30 years. These diseases consist of (1) thickening of the pleura or lining of the lungs, (E) cancer of the lung, _ (3) cancer of the gastrointestinal tract, and, (4) malignant mesolheliomas--a deadly cancer of the , lining of the lung or abdomen which is extremely rare except following asbestos exposure. ST0002816 Studies by our Medical Department indicate that, though we thought our employees were exposed only to safe levels, the changing opinion of what constitutes a safe level has left us with a significant number of individuals who are potential victims of asbestos disease. We should therefore (1) institute procedures to minimize future exposure, (2) institute medical surveillance of the individuals at risk, and, (3) institute a campaign among the previously exposed group to discontinue smoking, which habit vastly enhances the chances of developing cancer of the lung. Some Divisions have ongoing control programs of excellent quality and I have no doubt their people will gladly share their experience with anyone who has not yet established control. Continued public information on this topic could eventually result in another case of environmental hysleria--we hope if such occurs we can say everything that can be done has been done. Let us be sure that, in addition to controlling our plant environment, we also insure that we arc adding no asbestos dust to the community environment. Corporate Medical Department July 17, 1970 .COk; ;;.:; , i.iAL TM.'S A'-' l(U> DOW ^Enclosure - 2 c 1-1 iz i\n i c a X - o r/i pa k' yt r irx AS ti (VISION FRcrroni irxAs 77:^1 September 11, 1970 B. J. Kinsel B-108 cc: 0. A. Easton . ASBESTOS INSULATION - STATUS REPORT As of the date of this report, the Insulator Shop has discontinued the installation of most asbestos-bearing pipe insulation. In cases where the service requirements are greater than 1500"F., we are still installin Kaylo 20, a calcium silicate, asbestos reinforced material. This \ise is limited, mostly, to tube-turns on LHP cracking furiiaces. This work only comprises about 2% of the jobs we currently install. This is expected to continue until an adequate high temperature substitute is found. All of the Kaylo, a calcium silicate asbestos-filled insulation for temperatures to 1200F., has been removed from the shelves in the shops and has been returned to locations as directed by Stores. The field stocks are being shipped to Stores as they are located. It is felt that approximately 80% of these field stocks have been removed to date. Ue are still in the process of locating and eliminating these small amounts of material. t. Engineering standards of E & CS and Texas Division are in the process of being revised. It is felt that finalization of these standards will take about eight weeks longer- Contractors are still being allowed to install Kaylo and Kaylo 20 on new construction although most of the new instal lations are in Carey-temp, a non-asbestos material. Technical Development is working in the area of finding substitutes for .materials which contain asbestos such as transite, haveg, etc. It is felt at this time that existing safety rules regarding the use of respirators for "hazardous dusts" are adequate to require the use of respirators by all personnel when dismantling the existing insulation materials. Subsequent to additional talks with the Safety Department,0 we expect to formally communicate with all supervisors involved. 'The cd Functional Superintendents have already talked with the Zone Superin- CD tendents regarding the use of respirators, when handling these products. CD Ue had some minor difficulties with Purchasing's getting us into the -- Carey-temp business, but these were ironed out quickly. I feel that we are.now "over the hump" as far as the change over occurs. There are a great many loose ends which still need to be gathered up. I will keep you informed as we change specifications, types of materials, handling procedures, etc. / /) .!^C F. B. Crouch D ]( A F T Enclosure - -> ASBESTOS USAGE - STATE Olr MAINTENANCE DEPARTMENT A'JPv RESENT Briefly, we feel that the highest exposure rates are experienced by the Insulator Group which handles the material on a day-in and day-out basis, both maintenance and construction. The next highest group would be the Brickmasons who apply the loose asbestos fill used in the mag pot program. Next in the exposure-time-weighted factor would be the persons who occasionally fabricate asbestos-bearing materials such as transite, haveg, and the like. The last on the exposure list would be those persons who occasionally perform demolition of asbestos-bearing insulation within the plants such as removal to facilitate repairs, etc., and handling loose material torn off existing lines prior to sending to the dump grounds. Presently, we have discontinued all purchasing of asbestos-bearing insulating pipe covering with exception of certain selected sizes of Kaylo 20, a high temperature pipe covering material, used for temperatures from I200F to 2200F. Only use we are aware of for this material is certain light hydrocarbon plant furnaces tube-turn bends. ST0002.8 18 We have made a concerted effort to eliminate the small stocks of asbestos pipe covering which are scattered throughout the division. I believe we have accomplished this goal to the tune of about 95% complete We have also returned all asbestos pipe covering from our supplier (Gulf Supply) back to the manufacturer. Presently, we believe that only about 2% of the insulators'work within the division is made up of asbestos pipe covering. eliminate all existing stocks.) ($4,000 to $5,000 to Insulating materials we are using to replace asbestos are: 1. Fiberglass - both in "snap-on" and loose blankets, ambient to 350F. - 2. Foamglass - 450 to 800F - also used where temperatures cycle excessively and for Dowtherm service. 15% more expensive than asbestos. Page 2. 3. C Carey temp 1500 - ambient to 1500lr - expanded pearlit;e - fiberglass reinforced. Some problems associated with application but best available at present. Same cost as asbestos. Several other areas we are working on: 1. Have problems with loose fill insulation used when setting mag pots. This generates a terrific amount of dust when asbestos shorts are used. We have found that "Super 48" by "48 Insulations, Inc." mineral wool makes less dust than asbestos shorts and contains only about 10% asbestos. The texture is slightly damp or moist feeling, thus Cutting down on the dust problem. When our brickmasons are using this material, they have been wearing respirators. We have been assured by the manufacturers of "Super 48" that STOO0 2 8 19 .by October 16 they will be producing an asbestos-free insulation in bags marked as such. The composition of this material is a mineral wool made from copper slag. 2. Fabricating of asbestos-reinforced plastics such as transite, haveg, micarta, where dusts become a problem in operations such as sawing and grinding. We have no problem with insulators wearing respirators when this work is going on. Saws have been developed with vacuum systems to reduce * .amount of dust, but we still wear respirators as we still get quite a bit of residual dust. 3. Our foremen have been notified that respirators are to be worn by the employees when significant amounts of insulation are to be removed when demolition occurs. We have not yet made it a firm rule to wear respirators in any situation where dusts of asbestop occur, but I believe this will be only a short time before we do. Due to gathering evidence of existing hazards. The last principal area I want to cover is that of new construction. We are currently in the process of changing the Texas Division standards which will require the elimination of Kaylo (asbestos-type pipe covering) from the list of approved material. The Construction Department is continuing with all new construction in asbestos in which the material is on the job site, but any other new work will have the Carey temp 1500 or expanded pearlite installed in lieu of asbestos. This change took place about the 5th of October. This is a- brief summary of where we stand in the Maintenance program of elimination of asbestos exposure hazards. F. B. Crouch /bs October 13, 1970 ST0002820 Enc^~ sure - 4 ASBESTOS USE - STATUS OF IN TEXAS DIVISION We recently ran a survey of the use of asbestos in the Division with the object of answering 3 questions - 1) Where is asbestos used 2) What protective gear is being used and 3) What have people been told about asbestos. Where is asbestos used? In addition to the use of asbestos containing I 'Vs.Qv/. vft"*l fc-Jv materialsAthafciiave=be?E33Sii throughout the Division, asbestos is used in our chlorine areas for cell diaphragms in cell manufacturing, and repair fdr facilities and in all chlorine plants for pulping cells. Asbestos is also used in the Mag Cell areas for insulationin pot settings and in numerous other ways for the sealing of leaks in the cells and vent systems. In addition to the use of new asbestos, we also have the problem of tearing out of insulation throughout the plant as well as the dis posing of used asbestos in the chlorine and magnesium areas. There is also in use materials of construction such as transite and haveg that are asbestos containing materials. What protective gear is being used? * In most of the areas where asbestos is being used, either installed or disposed, we now have some form of protective gear in use. Our insulators have been wearing respirators for sometime. Cell Manu facturing folks have had a good protective program for about the last 1% to 2 years. Recently the Mag folks started using more pro ST000282I < -2- < tective gear. I would say that the Insulator and Cell Manufacturing and repair people have a good program with good supervisory control. With some of the other crafts who occassionaly remove and dispose asbestos materials, the use of protective gear is variable, probably relative to the degree of exposure. Contractors in the Division presently do not wear much in the way of protective gear. What have people been told? Asbestos information which our folks have received varies widely. Some have been.told little, if anything -- others that asbestos is hazardous to the lungs -- and others that it causes lung problems including cancer. Probably the best informed are those who have been under the periodic examination program where the doctors have apparently discussed asbestos candidly. Contractors probably have been told little about the hazards of asbestos. Now, I'll turn this over to Jack Crouch who will discuss the effort by the Maintenance folks.in substituting some different materials for asbestos containing materials. ST0002822 RCW/ks 10/14/70 S & LP Enclosure - 5 ASBESTOS RECOMMENDATIONS I'. Develop a Dust-Asbestos informational type program for division employees and contractors. (Similar to other hazardous material programs which have been developed.) 2. Develop and audit safe work procedures for minimizing the, generation of asbestos dust. Procedure must include protective gear as a final precaution. 3. Continue to pursue the replacement of asbestos with reasonable economic substitutes. (Recognize that asbestos is probably irreplaceable in certain applications.) 4. Develop procedures for accounting for asbestos used and in monitoring asbestos exposures. 5. Continue periodic physical program on division employees who have reasonable exposure to asbestos. D. J. Kilian, M. D. F. B. Crouch R. C. Walker RCW/ks 10/15/70 S & LP ST0002823 c fi A 0) B 3,' n & Kuo losurt! co o CD ,;ro !;!ao ro Rti ci s a f!Si S' B 3P oc oP o*-* t: et p ? sr m 33 A&H"* 2*o P**p. c'g ^ I* s M r r* 3 HffO IT'S o O r n f us e ?1 -ftps 3 B3 9M sSb Ss tv< *s A t y U PS H* ft n ' 35 o 8. ya * O <RAcn n B-S -r`t 3 j Pss^s8 |ftP * O 8 <4 R E) X > o rh*C Oo 6 S h?8 85<>8 E3 ~ ' S' ^* O ? 89 " 3E H* C occ 3O *r Ah r p et F< C ct o sr 3 o. 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Meanwhile, millions of workers remain exposed to asbestos dust in plants throughout the world. 1 | Bad news about asbestos continues to make headlines. In September, for instance, Joseph A. Califano, Secre tary of Health, Education, and Wel fare (HEW), drew attention to an alarming statistic in a new study by the National Cancer Institute (NCI) and the National Institute of Environmen tal Health Sciences (NIEHS): An aston ishing 17% of all cancer deaths in the U.S. over the next few decades will be linked to some previous exposure to asbestos. Speaking at the AFL-CIO National Conference on Occupational Safety and Health, Califano said that the NCI/NIEHS report definitely rejects the conventional estimate that 1 to 5% of all U.S. cancer incidence is related to occupational exposure to carcinogenic agents. Estimates of 20% to as high as 38% are not unreasonable, he added. EXPOSURE THAT KILLS --The joint study estimates that between 8 and 11 million U.S. workers have been exposed to asbestos since the beginning of World War II. Of these, about 4 million have been "heavily ex posed,"--i.e., worked directly with the material most of the time--and 4 to 7 million .hsve received "peripheral" exposure--e.g., of the sort that a maintenance worker would get in a plant where asbestos was being installed. 'Thet NCI/NIEHS report assumes that 20 to 25% of those in the first group will die of lung cancer, 7 to 10% of pleural or peritoneal mesothelioma (a particularly lethal'cancer), and 8 to 9% of gastrointestinal cancer. Assum ing that the risk to the second group is 25% that of the first one, the report concludes that a total of 2.15 million workers will die over the next 30 to 35 years, or about 67,000 per year. This Fiberglass insulation, an alternative to asbestos, is considered safer represents a whopping 17% of all cancers detected annually in the U.S. The joint study's figures on expo sure for workers are taken from HEW estimates (the department believes that 1.5 to 2.5 million U.S. workers are still being exposed to asbestos), while the fatality percentages are borrowed directly from a World Health Organi zation (WHO) position paper issued in eariy 1977. This link svith the WHO document is confirmed by Joseph Wagoner, special assistant for carcino genesis with the Occupational Safety and Health Administration (OSHa), who was a member of the group of health experts that authored the WHO study. Meanwhile, a spokesman for NCI/NIEHS says that the joint report is basically an update of epidemiological data on asbestos, in the light of new information uncovered in the past year. Whatever its origin, the NCI/NIEHS work is attracting its share of criticism by way of an attack on Califano's recent statement. Some claim that the HEW secretary is unnecessarily alarm ing the public. Asbestos no longer puses widespread' sickness because working conditions have changed, they say. Dr. Irving J. Selikoff, a well-known authority on asbestos, and director of Mt. Sinai Medical Center's Environ mental Health Laboratory (New York City), notes that "Califano's remarks are projections based on limited data, and probably represent an upper limit." But he warns that even if Cali fano's figures are off" by a factor of two, the problem is enormous. However, a spokesman for the American Cancer Soc. (aCS), New York City, feels that the NCI/NIEK3 report does overstate the problem. INDUSTRY RESPONSE--The Asbestos Information Assn, (aia), Arlington, Va., an organization of asbestos processors, says that the NCI/NIEHS data are being analyzed by the group's scientific advisors, and that a statement will be issued when the study is complete. Meanwhile, an aia press release calls the report "simply anoth er extrapolation in statistical terms from the same data which have been available to the international scientific community for some time." Another AIA press release, issued in response to a Califano statement (made in April) regarding a large 76 CHEMICAL ENGINEERING NOVEMBER . 197B NEWSFEATUBIt--i _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ srnnn U.S. firms still use it, despite its checkered career 8m, time-weighted basis, with a 15min ceiling of 5 fibers/cm3. All limits The term "asbestos" comprises a group of impure magnesium silicate minerals--e.g., chrysotile, amosite--that occur in fibrous form. Reports of the toxic properties of asbestos date back to the 1920s in the U.S. However, it wasn't until the war broke out, when millions of workers were employed in shipyards insulating warships, that mass exposure to asbestos dust occurred in this country. The material enjoyed wide popularity as an insulator in plants and buildings until 1970, when, in response to mounting evidence of its toxic properties, manufacturers stopped producing insulation made of loosely bound asbestos fiber. The Asbestos Information Assn, says that the 3,000 asbestos products made today in the U.S. contain chemically and physically bound fibers that do not flake off. Current end-use breakdown: asbestos cement products (pipe, sheets), 22.4%; roofing products, 34.9%; asbestos paper, 4.3%; flooring products, 15.6%; packing and gaskets, 2.8%; thermal and electrical insulation, 1.2%; friction products (brake linings), 8.8%; coatings and compounds, 2.7%; plastics, 3.0%; textiles, 1.0%; and miscellaneous, 3.3%. apply only to fibers longer than 5 /xm. (NIOSH, which serves in an advisory capacity, has recommended a limit of 0.1 fiber/cm3.) OSHA is currently evaluating the economic impact of the proposed stan dard, which is bound to affect both processing and use of the material. Predictably, industry reponse to the idea has not been favorable, aia calls the 0.5-fiber/cm3 limit "not technical ly feasible," and recommends instead the adoption of 2 fibers/cm3 as a permanent standard--one that can be realized at a reasonable cost for dust control. On the other side of the spectrum, Roy Steinfurth, the asbestos workers' spokesman, feels that the only accept able level is no asbestos exposure at all. The union official says that, even if the outbreak of asbestos-related diseases leading maker of asbestos products): exposure level is reduced to 0.5 among World War II shipyard work "Clinical evidence shows that lung fiber/cm3, a worker would breathe in ers, explains that such a heavy expo cancer in asbestos workers is virtually 4 million fibers in an 8-h workday. He sure to asbestos existed before medical limited to those who smoke cigarettes, estimates that as many as 50% of the information revealed the dangers , in and that for practical purposes, lung members of his organization will even-, volved. Since then, millions of dollars cancer as an asbestos-related disease tually die of asbestos-related diseases. have been spent in dust-control equip would not be a'problem were it not for In Europe, there is also a move to ment by miners, millers, processors cigarette smokers." cut down on the exposure level, which and manufacturers of asbestos. A1A is currently on a vigorous has been 2 fibers/cm3 in the past few In addition, note other asbestos- campaign to persuade industry work years. Italy, which lacks asbestos industry spokesmen, the type of prod ers to stop smoking. deposits, is attempting to phase out the ucts made in the past--e.g., asbestos "There is no doubt that exposure material completely. Sweden moved to thermal insulation --are no longer and cigarette smoking have a synergis a 1-fiber/cm3 standard a year ago, produced. They were phased out in tic effect," says an ACS spokesman, and U.K. authorities are clamoring for the early 1970s, when the inherent "but since so many workers included a reduction of the present limit. hazards became apparent (see box). in past studies were smokers or ex Critics who complain that the OSHA Nevertheless, asbestos is still used as smokers, it's difficult to assess the risk proposal does not go far enough in an insulator or fire retardant in more to non-smokers." protecting workers also question why than 3,000 products ranging from The synergism is acknowledged in the standard should apply only to water pipes to brake linings. And an the who document. "Both cigarette fibers longer than 5 /xm. Both SelikofT estimated 500 million tons of the mate smoking and exposure to asbestos and Wagoner, for example, believe rial are still around in plants and independently cause lung cancer. that the smaller fibers are even more 'lciir.gs throughout the U.S., accord However, when present together, they active in producing lung tumors. And, ing to Roy Steinfurth, administrator of act in a multiplicative fashion." The according to SelikofT, "For each fiber the insulation health-hazards pro NCI/NIEHS study agrees, and admits longer than 5 (im, there may be a; grams for the International Assn, of that it would be an error to attempt to many as 100 shorier ones." Heat and Frost Insulators and Asbes blame each type of cancer mentioned OSHa's Health Standards Project tos Workers (Washington). Workers in the report on an exclusive cause. Officer William Warren says that the still exposed to asbestos are not a NEW STANDARD?--The current 5-jxm length was the most practical adequately protected, charges SelikofT. flarcup of the asbestos controversy is of alternative because detection equip cigarette LINK--Industry spokes more than marginal interest to OSHA, ment does not pick up anything small men also point out that exposure to which has been trying to modify pres er. Warren notes that available moni asbestos alone may not be enough to ent rules governing exposure to the toring units delect only "from a few cause lung cancer --the disease most material (the agency is studying the percent to 50%" of the actual number commonly associated with the breath NC1/MEHS report). of fibers in a sample. ing of asbestos fibers--and that the For more than three years, OSHA INSULATION DANGER --Spot checks connection between exposure and ciga has been pushing a proposal to reduce with a number of U.S. insulation rette smoking has not been stressed the permissible level of airborne fibers manufacturers turned up no one still enough. Says John A. McKinney, in the workplace from a present value making the asbestos-containing ver president of Johns-Nlanville Corp. (a of 2 fibers/cm3 to 0.5 fiber/cms on an sion. However, there are still tons of it 78 UIKNUCAL ENGINEERING NON EMBER 6. 197$ i:i*,.yi3 7iuirre? 1 installed in chemical plants all over the world. Since the asbestos is loosely bound, the cutting, handling and tear ing down of such insulation poses a health hazard. "If the insulation is intact, there's no problem," says an engineer with Brit ain's ICI, Ltd., "Whenever mainte nance requires stripping down and removal, we replace with a substitute material." He adds that the firm does not specify asbestos for any new plants. "We stopped using asbestos for insulation about seven or eight years ago," claims the safety manager of a U.S. refinery. "Although it is cheaper and easier to apply, the health risks persuaded us to switch to fiberglass and calcium carbide." He further notes that although some asbestos is still used, it is of the bonded type, which does not present a potential dust hazard. The indirect risks of asbestos insula tion were highlighted in a recent study of maintenance workers at American Cyanamid's facility in Bound Brook, N.J. The survey, commissioned by the International ChcmTCafl M\* Union (ICtvu), Washington, and car ried out by the Ml. Sinai Medical Center, identifies the risks faced by maintenance workers (other than insu lation installers) when working in the vicinity of an insulation job. According to Larry Ahern, director of health and safety for icwu, the results show that 44% of all workers, regardless of job function, had some form of asbestos-related lung abnor mality. One group of workers exposed for less than one month experienced a significant increase in the incidence of lung disease. Worse, the researchers discovered that many of the workers' relatives, who had not been in direct contact with the material, were affected. "About 123 wives were sick," says Steinfunh. how about substitutes?--Such popular asbestos replacements as fi berglass, mineral wool and calcium silicate may have health hazards of their own, but these have yet to be identified. In a criteria document issued in il 1977, NiOSH said: "Fibrous glass seems to be considerably less hazard ous than asbestos . . . and, until more information is available, the recom mended standard can also be applied to other manmade mineral fibers." The NIOSH paper suggests a standard of 3 fibers/cm5 for fibers of less than 3.5-Mm dia. Larger fibers are not thought to be respirable. Ralph Zumwalde, an industrial hygienist at NIOSH, points out that most of the exposure to fiberglass involves fibers with diameters greater than 3.5 pm, even though some special products contain thinner ones. "Fiberglass is an irritant, and can cause skin irritation or upper respira tory irritation," says Dr. Donald J. Billmaier, assistant medical director of Owens-Coming Fiberglas Corp. (To ledo, Ohio, "but our studies show that there are no chronic adverse health effects from using the material." Calcium silicate is classified as a nuisance dust, not a fiber. The OSHA standard is 15 particles/cm3 for the respirable fraction. Vincent Cavaseno Gulf Coast buildup may ease olefin glut |~[ A more hopeful outlook for ethyl ene derivatives is triggering major expansions in the Gulf Coast area, and these may help alleviate, at least local- *he ethylene surplus that is predict ed through the early 1980s (Chinn. Eng., Mar. 27, p. 80). Consider, for example, the current buildup at the Raporte, Tex., complex of the USI Div. of National Distillers and Chemical Corp. The company, which last year increased its highdensity polyethylene (llDPE) capacity to 500 million lb/yr, boosted its lowdensity polyethylene (LDPE) capacity by 200 million lb/yr this spring. Another cthylcnc-consuming addition is under way--USI will complete early next year a vinyl acetate mono mer expansion.This will raise monomer capacity from 375 million lb/yr to 600 million lb/yr. The three expan sions will consume a total of just under 500 million lb/yr of ethylene. Shell has marked the tenth anniver sary of its complex at Geismar, La., by inaugurating ethylene oxide and ethyl ene glycol trains, now about 60% completed. About a year ago, the company began work to increase oxide production from 300 to 700 million lb/yr, and glycol output from 150 to 350 million lb/yr. "This expansion will be ready for startup in early 1979," says plant manager Fred Foster. The ethylene oxide boost will require 340 million lb/yr of ethylene raw material. Shell will also add flexibility to the Gulf Coast ethylene distribution sys tem with a new 254-mi ethylene pipe line that will run from Mont Belvieu (just east of Houston) to Napoleonville, La., near Shell's petrochemical plant at Norco. The company is build ing a l.5-bitlion-lb/yr ethylene plant there, which is expected to go onstream in 1981. Says A. R. Flora, Shell's olefins business manager, "The pipeline will help to eliminate spot shortages in Texas and Louisiana complexes, which are the heart of the petrochemical industry." USI executives now speak more optimistically about the future of downstream products, and predict a belter supply/demand balance. Ac cording to George Kappas, vice-presi dent of National Petrochemicals Corp (jointly owned by National Distillers and Owens-Illinois), UDPE is currently moving away from oversupply. "At present," says Kappas, "there is a slight surplus of HOPE. However, producers are not building .up yearend inventories, and demand is grow ing steadily. Consequently, in 1980 and 1981, supply and demand will be somewhat tighter than they are today." Kappas notes that domestic need for the resin has grown at an average annual rate of more than 11 % since 1971. LDPE will be in balance by 1980, according to USI estimates. 80 CHEMICAL EMUNEERISG NOVEMtir.il (. 1911 ..^