Document NeZ8ja1bBK291BvOJy35304RD

EXECUTIVE COMMITTEE ACTION MEET1NQ OF JANUARY 26,1977f Page 1 ol 3 PROJECT REQUEST Ethyl Corporation \ l Jem Nrt, ] 2028 Project No. B-2028 Dote Approp, Request No. 1/10/77L 1 1. Di'-iston - Deportment 2. Location Project Accounting Location Manufacturing Baton Rouge Baton Rouge Plant Title VCI Emission Reduction -EPA 4. Primary Justification Pollution Abatement 5. Projict Descri|Too This Part 1 request for $600,000 is for funds to provide part of the facilities required in the Baton Rouge vinyl chloride and polymerization facilities to meet EPA National Emissions Standards for Hazardous Air Pollutants, Standard for Vinyl Chloride. Subsequent requests will be submitted for funds for additional items as scopes are more fully defined. Funds are included in this request to start engineering on future items. The program outlined to meet the Standard will reduce the number of vinyl chloride emission sources, supply instrumentation to monitor the facilities, and provide appropriate waste collection and disposal facilities. The primary justification for this project is pollution abatement. 6. Estimated Expenditures a. Fixed Investment b. Workinq Capitol c. Operations d. Other A. This Request , 600.000 B. Appropriated to Date C. Future Requests $ $ Undefined* D. Iota! Project s Undefined* 7. Writeoff Total Project Expenditures Original Cost Depreciation Salvage Value * 600,000 $ $ Undefined* s Undefined* Net Write-Off $ 8, Included in Capital Budget? What Year? No SI Yes - -J" ^ 1977 Ref, No. If Substitution, give effect on return [_ Amount ,1,800,000 $$ $ 9, Patents Project will be examined for any patentable features 10, Forecast DisbursementvFixed Investment This Year *77 $ 600,000 Subsequent years Total S 600.000 12, Estimated Completion Dat*/J'fs Fourth Quarter 1977 13, Class of Estimate This Request Speculative 14. Lease Commitments: Annual Amount Term None 15. Remarks ard Ultimate Effect 11. Economic Summary-Based on Standard Calculation !fAltrmate/s) Used, Attach Details F ixed 1 nvestment Other Expenditures Total After Tax Savings Or 1 ncome Payout Period Working Capital Requirements Total Capital R slum on Total Capital Discounted Rate of Return EC This Request $ 600.000 $ * 600.000 $ S * 600.000 5?805 * $ Yrs. $ S % % Total Project Undefined* Undefined.* Undefined* Yrs. % % `Total Project expenditure is undefined at this time. Based on a highly speculative scope, an Order-of- Magnitude estimate indicates total project cost could range from $2.5MM to $4.0MM. Compliance is required by October, 1978. VCI Emission Reduction - EPA r Ism No. 20281 ^6T Explanation umJ Economic This request for $600,000 will provide funds for the following: 1. PVC Plant - Purchase of Portable Air Analyzers - Vent collection and transfer system for pilot plant - Incinerator exhaust gas monitoring system 2. Hydrocarbon Plant - Tandem seals for VCI pumps - Flare seal system revisions - Install cover and liner on wash water collection system - Install 20" transfer line from wash water sump to west pond . T^ Page * ol o Project No, 20281 Request No. 1 ECONOMICS: Primary justification is pollution abatement. This request continues Ethyl's efforts to comply with OSHA and EPA requirements; it increases Ethyl's capital commitment to this product and, therefore, will require some product price increase to maintain the present profitability. ENVIRONMENTAL AND ENERGY IMPACT: The facilities provided by this project will have the following effect on energy, utilities, and chlorinated hydrocarbons: Electricity consumed 6.6MKWH/Yr Water consumed 300 M Ga l/Yr Steam .consumed 3.4MMLb/Yr Chlorinated Hydrocarbons Recovered 20 M IlyYr Chlorinated Hydrocarbons Incinerated 20 M Ib/Yr These facilities will reduce the quantity of chlorinated hydrocarbons presently being vented to the atmos phere or being discharged in the plant effluent. Burning of vinyl chloride from the pilot plant vent will increase the amount of HCI vented to the atmosphere, but total HCI level should be well below the proposed EPA concentration at the plant boundaries. CAPITAL PRORATES TO DIVISIONS: Plastics: 66.8% = $401M ICD: 33.2% = $199M 17. Tax Item: Qualifies for Pollution 5-yr. Write-Off Ye 0 No Qualifies for Tax Exemption Cortlf. IXIYm LjNo If Special Depreciation Allowance Is Available, Deicrlbo: 18. Requeue Approved By i Other Approval! i (Indicate Responsibility) Co-sponaor Senior Vice President senior vic^ rresiaenr Chief Engineer or Division Engineer / (Eitlmate and Schedule Respontilitfltv 3 .S .Roberts Manufacturing or Production Manager (Manufacturing Retponaibility) ( W.C.Slrader Divirion Salat Manager (Salat Volume and Price) C.M.Neher r Co-Sponsor Senior Vice President . Wv. J.M.GifP Co-Soontor (jen.M&r. IUJ/ M.F.Gautreaux Asst .D ir .Mfg .Tech .Services D.E.Park`d R.A.Moser Co-Sponeor /1 R. M. Wolberf^^Jw" Divtilon Economics Coordinator (Approval of Economics), j T.A.Leeper v Division Finance (ApL , (Finance Review) jj /b ya i J.W.HWIUyMLirhLJL Co-Sponjor J G.E.Rooney - _ 41 \S FC 2806 JOB NO.20281 rito.ii'.c r i ;_n matjk Estimate No. 2231 -B TITLE. VCl Emission Reduction * EPA tAMIBII U Page 3 of 3 DATE OF.^ESTIMATE. 1-7-77 ^'lew Investment HC~3 Flare Seal HC"4 Pump Seals HC-6 Fume Scrubber PVC-8 Continuous Sampling - Incinerator Stack Gases & PVC Plant Leak Detection PVC-10 Pilot Plant Vent PVC-11 Testing Incinerator StackGases Total. New Investment $67,000 57,000 223,000 77,000 28,000 22,000 $474,000 Reserve 115,000 Escalation 11,000 Project Total $600,000 Future Requests Undefined* RECAPITULATION 0T REQUESTED FUNDS Tit i s Request Approprintion To Oate Future Regues ts Tota 1 Invrs tment Operations Total $600,000 $600,000 Undefined Undefined Undefined Undefined Undefined Undefined CLASS OF FSTIMATF* Request: Order of Magn i tude l_J Specu I a t i ve (X I Anoroor i at i on Grade l~ . (Future Requests: Order of Mngnitude Q] Speculative Q] Appropriation Grade IMPACT OK ENGINEERING DEPT. BUDGET Fnqineeiing Budgeted: Engineering as now forc.nst: Effect on Budget Add (Decrease) Budget Year 1 977__Rev. 0 ($M) 121 (Man-years) 3,2 121 3.2 Future Budget Year ' 19__ (Man-years) Check if this project is a substitute for budgeted project |~~j -ttr**ARKS: *Future requests are undefined at this time.________________ EC 9807 Conf i rmed (Budget) Date:j//J/^ =V. ^ /Lir. Confirmed t^4f2Y? Da t tfAN 1 3 M77 (Estimate)