Document NerZyDm23g3vvrKG6LmoQ14N8

BIRD 011082 BIRD 5 SON, inc. CENTRAL ENGINEERING DEPARTMENT OVERVIEW For Mr. John Arnold Prepared by Mr. George L. Dusty December 1, 1980 BIRD 011083 Purpose of Overview 1 In order to smoothly accommodate the recent reporting channel change, this overview has been developed to update you on the Central Engineering Department as it has been organized and operated in the past. ROLE Present Charter Discussion MANNING Present Arrangement Discussion WORKLOAD Discussion Work Lists UNRESOLVED SUBJECTS SUBJECTS FOR FUTURE CONSIDERATION BIRD 011084 Role of Central Engineering 2 .Present Charter Presently Central Engineering provides support on request to the operating divisions in five major areas. 1. Maintenance. 2. Construction. 3. Process. 4. Research and Development. 5. Environmental. For the most part the Department acts as a consultant to each of the operating divisions and top management. The exceptions to this policy are: 1. Environmental (James Guzelian) Environmental studies can be initiated by the Department without being requested by the operating divisions (previous approval by Mr. Heim). 2. Power and Steam (Paul Barra) Efficiency and maintenance studies of the operating divisions power and steam generating equipment can be initiated by the Department without being requested (previous approval by Mr. Heim). 3,. Energy (Joe Hratko) Energy studies can be initiated at the operating divisions without being requested by the divisions (previous approval by Mr. Heim). 4. Electrical Safety (John Joy) Electrical safety investigations can be conducted at the operating divisions without being requested by the divisions (previous approval by Mr. Heim). BIRD 011085 Role of Central Engineering (continued) 3 Discuss ion 1. Maintenance Support This has primarily occurred in the electrical and power and steam sections. I believe we can satisfy the needs in these areas. We stand able to provide more comprehensive maintenance support if called upon. 2. Construction Support The Department has provided construction support without the advantage of having an architectural or civil engineering discipline in-house. Construction projects ahve come too infrequently to justify this in-house capability. We usually have to include engineering consultant money in the project estimate to cover hiring the civil engineering support; however, we are able to provide all the remaining functional services. 1 believe this is the way we should continue to operate. Since this type support does not usually have a high priority, we tend to postpone or defer it when more important work comes along. 3. Process Support This is our weakest area. Since appointing a Roofing Engineer we have improved our capability in this area, but with the latest changes we have regressed. We still have no one in the felt process area that is fully experienced or skilled to respond to operating level needs. Paul Knight always felt that this service should be hired when required. Due to past transfers (Mr. Hardy, Mr. Maloof, Mr. Moody and yourself) we are not as heavy in experience as we have been in the past. I have replaced these people with three entry level people, which I have subsequently lost due to job and manning changes. i- BIRD 011086 Role of Central Engineering (continued) 4 4. Research and Development We are probably strongest in this area. All of our plastics people are oriented towards application development at the present. I believe that it is justified, since our competitors in the plastics field have shown that considerable effort and progress is being made to keep each of them on top of changing technology. 5. Environmental Support The environmental support section consists of manning for one person. Mr. Guzelian holds the position. Mr. Guzelian is a recent transfer from the Paperboard Division. Though his academic training is biology, his experience is in paper and thus somewhat appropriate to the position. I made the transfer because 1 needed to fill the job immediately plus Mr. Guzelian had some of the skills required. 1 also wanted to see Bird & Son do what it could to place those people being laid-off by the termination of the operation. We mutually agreed to review our satisfactions or lack thereof with the job in six months. BIRD 011087 Central Engineering Department Manning 5 December 1980 Chief Engineer Engineering Secretary (1) C. E. Meears Open Design Eng.(1) W. Q. Nartiff Mech. Engineer (1) T. E. Civitarese Sr. Elec. Engineer (l) J. J. Joy Draftsmen (3) M. F. Donahue J. J. Sullivan Open BIRD 011088 Central Engineering Department Manning (continued) 6 Discussion V. The Department manning was increased from 8 in 1973 to 21 in 1979. This year we had a five man cutback. Needless to say since Capital Budget cutbacks have occurred, very little w->rk is being done in roofing. In plasctics not only do we have three assigned people, but we have the remaining four engineers working full time In this area. 1 am busier than ever since the cutback. I presently have no capability to take on any new workload. 2. Eventually I would like to have an Assistant Chief Engineer to assist me in managing the Department. I hope to use the position of Roofing Engineer as an interim job to train and select this assistant. Though most technical people with reasonable management skills could fill the job of Chief Engineer, 1 believe it would be more desirable to have a knowledgeable Roofing Process Engineer as your candidate. 3. A close look at the manning chart will show you that I have only one engineer that is not a specialist. Presently Mr. Civitarese is an entry-level engineer that needs much more experience. In fact he may be too weak for us. 4. Mr. Moylan, in the General Engineer's position, does all sorts of miscel laneous department support type projects such as surveying, piping process work, map work, and sometimes simple drafting. He is most effective when used to break in young engineers. Though he fulfills a necessary function, he will never approach the creative abilities of some of my other engineers. 5. Eventually the Plastic Engineering section might justify a section leader, but at this time I prefer to supervise each man myself. ) BIRD 011089 Central Engineering Department Manning (continued) 7 6. Generally speaking I have a well motivated staff. Seven or eight people are over-achievers; whereas, five or six do average work and one or two are under achievers. BIRD 011090 Workload Discussion 8 I have included a project list reflecting work status as of November 1, 1980. I don't normally prepare a periodic work list; however, I thought this might give you a little feeling for the work load backlog as well as the diversity of projects. This list does not reflect the many individual things that I am doing or the studies that Mr. Hratko and Mr. Guzelian are doing. Mr. Guzelian's field of interest is pretty much covered in the Environmental Status Report which you receive. i shall cover Mr. Hratko's work later in this report. Electrical Projects This seems to be a large backlog of work; however, many of the projects are not needed immediately. In the event of a high priority project, we can hire outside assistance temporarily. Mechanical Projects Presently all of our plastic and mechanical engineers are working on the accessory conversion to powder. We have seven people committed to this work. Needless to say our other projects must wait until the conversion is complete. Plastic Projects Exclusive of the accessory conversion, we have two major plastic projects of a continuing nature. Three years ago Mr. Heim approved three projects, namely: 1. Computer Assisted Design and Manufacture of Dies 2. Die Development Program 3. Automatic Process Control of Extruders Project #1 - Computer Assisted Design and Manufacture of Dies This project allowed us to bring in-house the design and fabrication of dies. The move saved us considerable money in the Bardstown conversion to powder. It will continue to allow us to save die fabrication expense as Bardstown products change. BIRD 011091 Workload Discussion (continued) 9 Project #2 - Die Development Program This project is the continuation of our die development program which was temporarily put aside when the Bardstown construction started. The objectives of the die development program are to: 1. Better understand the technology of extrusion die design, maintenance and manufacture, 2. Enhance our knowledge of how best to build die systems with close repeat ability, and 3. Raise production capability to extrude siding and accessories at rates of i00#/hour and 250#/hour respectively. This work is all mechanical and in no way conflicts with the material research being conducted by BBH. Bardstown, in their endeavor to meet production needs, would not have the time or specific skill to do this work alone. Since our plastic people were fully occupied with the accessory program this year, we were unable to do any work on this project. I had resubmitted my budget request of tr $32,000 expense and $10,000 capital for 1980; however, it was not approved. Project 3 ~ Automatic Process Control of Extruders This project is a two year research program which looks into computer control of an extrusion line. The complexity of the interaction of extrusion process parameters makes optimization of output extremely difficult by manual operation. Estimated research cost for initial investigation on one extrusion line at Bardstown is $108,000 over a period of two years. Potential savings in the order of $500,000 per annum could be achieved. BIRD 011092 Workload Discussion (continued) 10 Project #3 (continued) The large number of interdependence of extrusion process parameters makes it extremely difficult to manually optimize extruder output. Because of the complexity, manual methods of extrusion control rarely enable optimum output rates to be achieved consistently throughout a production facility. In the extrusion process, upstream polymer conditioning has major impact on the quality and quantity of the output. For example, predictable and control lable melt temperature is extremely important to the Die Designer since it is directly related to viscosity. If viscosity fluctuates, die output will also change. The melt temperature profile across the extrudate cross-section is also critical to die performance because large variations (20-30F) will cause flow problems across the lips. Similar types of arguments are applicable to other process variables such as melt pressure, gauge, width and gloss. This program will be conducted in its entirety at Bardstown in order to take advantage of the continuous production environment. It is not necessarily proposed that the operator be eliminated but it is hoped that many of the operating decisions will be taken away from him. Other anticipated benefits are: - Tighter sigma deviation control on output and higher output/line/shift - Tighter control of weight/square Quicker start-up and improved conversion efficiency - Automatic fault detection of instrumentation - Lower level of operator skill requirement Real-time data review - M.I.S. informat ion/record keeping, etc. BIRD 011093 Workload Discussion (continued) 11 Project ft3 (continued) The estimated cost and equipment components for the research investigation on one line is shown below: Equipment TDC2000 Controller Omyson Controller Sensors Installation Software Contingency Totals Cash Flow $ 1980 Capital Expense 1981 Capital Expense 65,000 13,000 5,000 5,000 5,000 2,000 5,000 5,odo 3,000 75,000 5,000 18,000 10,000 1 Project ft2, we had no time to implement the project this year; however. I have resubmitted a capital request in 1980 and have included $5,000 in my expense budget for I98O. This also was not approved. Both projects were reviewed and endorsed by Hr. Frazier, Mr. Hines and Dr. Schnizer at the outset. Had these two studies been completed prior to the Bardstown conversion to powder, i believe a far simpler and straight-toward conversion would have occurred. Auto-Process Control is not a new idea. It has been used for years in the plastics industry but not on profiles. I believe this type of control knowledge will be mandatory for the successful plastic converter in the future. Manny Verala's idea is not new, in fact it represents just the top of the iceberg as far as what we want to do and should be done. BIRD 011094 ;.) M echanical P ro je c ts +V3jI c4<-n0 aL_) U433-1. L0). L+33iJ iaV0.>) V<A) u<D uVVa>)) uocn Cl. c. U) oia. c 3) aOu. c L4oL33--J. i<uVnu) OJ o a. c 1i(0nA !(o0-> L<D. a. 3 --ir l43l-*. iVn) ImA L<0- <u0 cn cn OL. 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O ro -- m Q. 03 0 03 Z ac > L03- 03 4. in O -C O 4- to Q. o 14-- 4- u .c o OE in O -- a -Q S-- lm 03 0) C U (0 XT o a. 4J a O) o 4-f 3E U 4- to c *- o 4-J O > -- 4-1 03 cn O 4-i in *o o -- c 3E O m1-- 40->3 cn O a. i-- LlJ -- 4- 3O 03 O l/l Q3 4-> 3 in 03 >- Z 3 03 >. 03 *T3 3 --> 4-J U 3) Q_ z a: Z 00 2 cn Q c o -o(MU ao. o F f E le c tric a l P rojects (c o n tin u e d ) 15 BIRD 011098 Power and Steam P ro je c ts P 4) ToJ> 0) G3Q cIDd O P(0 C0O*\ > T3 L. tO 3 o T3 3P 0) P (/J "Q O) 4-* c c 4) CD o o -a CD CD 3 1 ca c O c O o cCD oo -- >. >* in O *T3 T3 CD 33 1 P C 4) 4) 0 > 3-- P CM -- C O O *a T3 4) 33 CM -3" 16 P. Barra A ll P la n ts Equipment E v a lu a tio n and O perating Procedure fo r H eating A p p lic a tio n s TJ <0 <B <0 4) c U u & U u u > O U CD p c c to u M -- 3 *3 c t" 4) a c U) M- O 4- IB c o -- Q- -- 3 c 0 u 4) O 4) c O CC O o r-- O 0 LO -- fmm to * cc IB -- IB 4) 4} p 4) P a 4) 3 U-. -- 4) c*"\ O X i- u 4) O CO u +J +J fO C/5 ID IB p to 3 CO Ll. 3 > Lu to 4) i_ to O -- c u oc IB O -P u u L. CP -- O O M 4) > -p to to 3 0 10 IB o 4) "3 LLi tU Q 4- 3 t/> 4- L. 4) 4) U. X 10 4> 4) 4) P C put -- o N 4J IO -- to L. 4) N 4-i to >. to in -- i-- to c w o co 4) E -a (O CO p O C 4) Q 4) P CC (0 JI CD *i o Xc o SO o 4fe ui m C-- u to 3 4) CLJ-- P -- O 4< SO o 4) X Li- 4) c (0 > IB o 4> ta-. c o P (O E -- --4j > CO u <0 *-- o CO 4) V) >C O 4) U -o a. c -- oo c o Pro uO a. a Q3_ at3. to to Li. u. oo Ll. Ll. 3T U. BIRD 011099 17 Unresolved Subjects ) Solid Waste Incineration Program Paul Barra has been developing the program for about three years. It was initiated because we were disposing of large volumes of junk material that had considerable energy value in it and we felt that some attempt should be made to recycle it. Several years ago BBH tried to remove the asphalt and granules through a chemical-mechanical treatment system; however, the process proved not economically feasible. Our new approach was to incinerate the material using todays improved boiler technology, thus replacing conventional fuels. This idea had been explored in the past, but waste disintegration was an insurmountable problem. Today's equipment now makes this possible. ') Our first step was to contact those firms that would put together a guaran teed system for us. With Dr. Schnizer's vendor recommendations, we settled on Combustion Power Company as the leader in the field at that time. The second step was to run a pilot burn test of our waste to determine if the waste was amenable to the CPC system and also to assess the air pollution control problems. The results were sufficiently successful such that CPC was willing to put together a guaranteed proposal. This proposal contained no development risks since all of the equipment proposed is presently being used in the field on other applications. The burn test also showed that not only could we incinerate all roofing mill waste products and there by greatly reduce the amount of petroleum products required, but we could also recycle granules. Another bonus would be reduced ! roofing mill landfill requirements. BIRD 011100 Unresolved Subjects (continued) 18 The basic study has been completed. Economic evaluations show a fairly long payback (5 to 6 years). It was for this reason that we asked the Department of Energy for a subsidiary grant to build this first installa tion in our industry. Stone s Webster (an eminent engineering firm) has evaluated the feasibility of the CPC proposal. I selected Norwood as the site for the first installation because it was a fairly large boiler using considerable oil. In addition this boiler was initially installed to incinerate waste products before air pollution laws were adopted and as such boiler efficiency was not held in the high regard it has today. This first installation could be installed anywhere that waste generation levels are high enough to justify the investment. In fact Charleston needs a new boiler to replace the two obsolete units it now has. In any event, the decision as to where it should best be located is secondary to the issue of whether you want to proceed with the consideration of an installation. The Department of Energy has turned us down on any cost sharing program. We have also stopped working on the project since it has a four to five year payback period. It is still an excellent energy saver and can essentially eliminate the need to buy fuel at Norwood if we choose to reevaluate it in the future. 3- Energy Conservation Program - Shreveport About five years ago Joe Hratko was hired to man a comprehensive energy conservation program at the company. He did so in a very aggressiveenergetic manner. It took over one year to make the study at the Norwood Roofing Plant. This seemingly long period of time was taken because BIRD 011101 Unresolved Subjects (continued) 19 it was necessary to develop by sampling irrefutable proof for the skeptical mill management that Mr. Hratko's conclusions were based on fact not specu lation. FB has initiated a program of gradual implementation which is still going on. The next study started at the East Walpole Paper Mill but several smaller studies took priority. One of the studies involved FS and by the time the small study was completed it was decided to complete a comprehensive study there. This study was completed in July 1978 and stated that if all of the recommendations were adopted some $1,126,000 could be saved annually at an estimated cost'of $1,500,000; however, Mr. Hratko's Phase One recommendations (Appendix 1) shows that an $860,000 savings can be made with an investment of $55^,000. Interestingly enough, not one question has been asked about the report since then. In an effort to see if we could get FS to support implementation of any of the recommendations. Mr. Hratko talked with Mr. Burris. Frank admitted that until such time that the plant had time to manage implementation of any of the projects they would continue to expend their efforts on improving productivity. Mr. Heim was unsatisfied with the FS progress on this matter and held two meetings with Mr. Wood, Mr. Hixon, Mr. Hratko and myself to see what steps could be taken. He decided to assign responsibilities for implementation. Engineering was asked to handle the two projects involving #2 fuel conversion and the installation of economizers on the boilers. This would requires us to prepare all of the engineering for implementation. On completion of this work we would present the proposal to FS to secure approval after any modifications were applied. BIRD 011102 Unresolved Subjects (continued) ) zo Mr. Wood was asked to handle certain other projects - some of which were simply maintenance oriented. Candidly I don't believe FS will move on any of the projects unless Mr. Jenkins supports the program. To date he hasn't. 1 believe FS is fully occupied with their day-to-day production problems without giving time or interest to the energy conservation. All of these items can be engineered and installed by Central Engineering if we were given the goahead. An interesting observation regarding Shreveport's use of energy is the comparison of Norwood requiring 1,553,788 BTU's to produce a ton of product; whereas, Shreveport requires 2,293,386 BTU's. This means that Shreveport \ i needs 47.6? more energy to produce a ton of roofing in spite of the fact that Shreveport enjoys a higher annual average ambient temperature. These figures only apply to roofing, thus the granule plants and felt mills have been excluded. Do you want Central Engineering to continue the work on the two FS projects mentioned? BIRD 011103 Subjects for Future Consideration 21 The Central Engineering Department has grown in several ways since it was organized in 1963. The manning has gone from 7 to 21, though now back to 16. The space requirements have increased from 1,000 square feet to the present 7,000 square feet. Most importantly the level of service has been expanded. Staffing prior to the cutback provided the department with general technical knowledge in the various engineering specialties covering our operations. In executing our support functions, staff members become involved with projects at all of our facilities. As a result, individual members continue to augment their basic technical knowledge expertise unique to our industry. It is for this reason that the department serves as a source of perfonnel available for filling higher-level management positions. I believe this capability should be expanded to include an engineer-in-training for the specific purpose of eventual transfer to a plant engineering position. We now have the capability to manage any conceivable engineering project associated with our facilities. I consider this to be an important capa bility inasmuch as our company-wide level of expertise is decreasing. With the exception of Jim Huffman at Charleston, we have plant engineers with only limited experience in our industry. With the exceptions of Portland, Martinez, and Perth Amboy our plant superintendents have had only a few years experience in their present positions. All of Frank Wood's time is required to keep our building material facilities operating. As I see it, Central Engineering not only could be, but should be, that reserve of technical expertise that will permit the company to continue to grow unhindered by the inevitable personnel changes. BIRD 011104 Subjects for Future Consideration (continued) 22 2. As previously stated, there are several areas in which the department can initiate work or studies without plant approval. Recognizing that our plant operating policy is based on decentralized control, 1 believe there is room for an expanded level of engineering support to the plants. The following is cited as an example (Appendix 2). In 1979 the Energy Manager was routinely reviewing the purchases of asphalt at each roofing mill. As a result it was learned that Franklin was purchasing about 50% of its asphalt in the form of a refined product (saturant) at a delivered cost of $131-80 per ton rather than purchasing raw flux at a cost of $9*1.31 per ton. Franklin came to us with an 80% complete new blowing facility. Evidently the justification for completing the installation was not warranted based on a one shift operation; however, since the advent of two shifts, it would be mandatory to complete the installation or refined product must be purchased. In any event, based on the month of September 1979, annualized premium costs would approach $1,000,000 unless Franklin changed their purchasing habits or completed the new blowing still facility. The point to be made is that Central Engineering, because of its unique knowledge of each facility, should be assigned a more active role in determining capital expenditure priorities at the plants. May I have your comments on the role engineering management should play in the company. 3. I've talked about the Energy Manager's role at Bird S Son and you can see, it's pretty much oriented toward cost reduction. Mr. Hratko likes his job but he is frequently frustrated and disappointed by the seemingly BIRD 011105 Subjects for Future Consideration (continued) 23 complete lack of movement in the areas he has studied and made recommenda tions. This is not because he is wrong, but rather that Bird Son is still not energy minded. I believe Energy Management should have an expanded role at Bird & Son. Certainly Mr. Hratko can handle a much broader responsibility. 1 further believe that in his intimate contact with the plant operating people, he is even more familiar with certain operations than mill management. I believe he also has a better view of long-range fuel availability coupled with federal regulations than does the Purchasing Department. In any event, I am certain energy management will plan an expanded role at Bird Son eventually. 1 believe the sooner the better. I have enclosed two newspaper clips that you might find interesting (Appendix 3) Not only does Mr. Hratko's attached memo tell you what he is doing, but it reflects his writing skills, planned ability, and his foresight (Appendix k). May we talk about this sometime soon? BIRD 011106 APPENDIX 1 MEMORANDUM ,o Distribution I'rotn 0. P. Hratko - BE < >4/m 16 August 1979 ubjm SHREVEPORT ROOFING AND FELT MILL - PROPOSED PHASE I OF AN ENERGY CONSERVETI'G PROGRAM Reference (a) SHREVEPORT ENERGY CONSERVATION SURVEY - REPORT DATED 24 JULY 1978 (b) INCREMENTAL PRICING OF NATURAL GAS UNDER THE PROVISIONS OF TITLE II OF THE NATURAL GAS PUL ICY ACT OF 1978 - AN EVALUATION OF THE EFFECT ON COST OF ENERGY AT SHREVEPORT AND FRANKLIN - REPORT DATED 30 JULY 1979 1. SHREVEPORT ENERGY CONSERVATION SURVEY: Reference (a) documents the results of the energy conservation survey covering the Shreveport Roofing and Felt Mill. This survey was conducted during the period 30 July 1977 through 24 July 1978. The detailed recommendations for reducing the cost of energy at '..liiev , are set forth in Section 4 of reference (a). It was calculated that imolenvnall the recommendations in reference (a) would effect a 33.15% reduction in th total heat energy consumed at Shreveport (refer to 2.1 of reference (a)). 2. PROPOSED PHASE I OF AN ENERGY CONSERVATION PROGRAM FOR THE SHREVEPORT ROOFING ANDTELTHILL: Implementing all the recommendations developed in reference (a) can best be achieved through a program extending over a period of three to four years. A review of reference (a) indicates that it would be advisable to concentrat. the firt part of this program on implementing those recommendations pertaining to: (1) the steam generating plant, (2) the operation of the dryer section of DSPM-1, and (3) the operation of the roofing mill steam system. Enclosure (1), SUGGESTED RECOMMENDATIONS FOR IMPLEMENTATION DURING PHASE ! OF THE ENERGY CONSERVATION PROGRAM AT THE SHREVEPORT ROOFING AND PETTFilLL,"' extracts 'From reference (a) recommendations covering the specific areas refem-. to above. ) BIRD 011107 SHREVE?CL -:f'i; r PROGRAM 16 August 1979 i '.i. . JF AN ENERGY CONSERVATION 2- - 3. PROPOSED PROGRAM FOR iMPLEMF'-*Tl.i6 A. THE RECOMMENDATIONS IN REFERENCE A three-piiOse program should be considered for implementing all the recommendations in reference (a). Planning for one phase of a program can be carried out simultaneously with the execution of the previous phase of the program. Phase 1 should be completed at the end of the second year of the program and Phase 3 should be completed at the end of the fourth year of the program. This approach will provide for the orderly planning, budgeting, and execution of the energy conservation program. 4. ENERGY CONSUMED AT SHREVEPORT AS A FRACTION OF TOTAL ENERGY CONSUMED BY BIRD & SON, inc. DURING 1978: Enclosure (2), TOTAL ENERGY CONSUMED BY BIRD & SON, inc. DURING 1978 LESS BIRD MACHINE COMPANY, was developed usinq data extracted from computer printout AT>CPF5'0'-~30, dated 3 January 1979. APO-550-30 tabulates purchases of fuels and electrical power. For a twelve-month period, it is considered that purchases will be very close to actual consumption. The entry in column 22 on line 6 of Enclosure (2) indicates that the Shreveport Roofing and Felt Mill consumed 20.41% of the total energy supplied by fuels purchased during 1978. It may be interesting to note that Shreveport consumed 19.85% of all the electrial power generated and purchased during 1978 by all the plants of Bird & Son, inc. If all the recommendations developed in reference (a) were implemented, 8ird & Son, inc. would achieve a 6.77% (20.41 x .3315) annual reduction in fuel consumption - based on 1978 operating data. This calculation indicates the magnitude of the potential for energy conservation that exists at Shreveport the largest encrgy-con..-.,:,Aiy plant operated by Bird S Son, inc., a:-.! . for which a comprehensive energy conservation survey has been completed. 5. INCREMENTAL PRICING OF NATURAL GAS UNDER THE PROVISIONS OF TITLE II OF THE NATURAL GAS POLICY ACT QF~f978: Reference (b) sets forth an analysis of the incremental pricing program which goes into effect on 1 January 1980 in regard to natural gas consumed as boiler fuel. Reference (b) develops an estimate of the maximum reduction in the surcharge imposed on natural gas usage that can be realized if the boilers and rommcos at Shreveport can be provided with the technical cij-jbility and legal right to burn low sulfur No.6 fuel oil as an alternate to natural gas in lieu of No.2 fuel oil. BIRD 011108 SHREVEPORT ROOFING AND FELT MILL - PROPOSED PHASE I OF AN ENERGY CONSERVATION PROGRAM 16 August 1979 -3- Reference (b) provides additional justification for equipping the boilers and rommcos with the technical capability of burning No.6 fuel oil and for installing a system that will supply properly conditioned No.6 fuel oil to the boilers and rommcos. 6. INDUSTRIAL ENERGY CONSERVATION PROGRAM: Title VI of the National Energy Conservation Policy Act (Public Law 95-619) establishes an industrial energy efficiency reporting program. The proposed regulations titled "INDUSTRIAL ENERGY CONSERVATION PROGRAM INCLUDING PROPOSED VOLUNTARY RECOVERED MATERIALS UTILIZATION TARGETS" were published in the Federal Register on Friday, 8 June 1979. The energy conservation program applies to Bird & Son, inc. inasmuch as corporate-wide energy consumption exceeds 1 trillion btus per year. The recovered materials utilization program also applies to Bird & Son, inc. inasmuch as the corporate-wide energy consumption exceeds 1 trillion btus per year for manufacturing operations under SIC-26. The proposed reporting forms for this program were published in Federal Register/Vol. 44, No.128/Tuesday, 17 July 1979. Detailed forms have been proposed on which each plant is required to submit to its corporate headquarters data on the efficiency with which energy has been utilized during the reporting period. The statute (PL 95-619) mandates that each plant submit the report to its corporate headquarters. Detailed forms have been proposed on which a corporation, using data submitted on the prescribed plant reporting forms, submits a comprehensive report on the corporate-wide efficiency of energy utilization. There are no penalties provided by the statute for failure to meet the specified targets; in this respect the program is voluntary. However, submitting the required reports is mandatory. The first report must be submitted by Bird & Son, inc. during 1980 covering energy efficiency improvement during 1979. Implementation of energy conserving recommendations that yield an attractive Distribution: ENCLOSURE' (1) G. L. Dusty - BE R. E. Heim - B J. A. Hixon - BB F. W. Wood - BBR SUGGESTED RECOMMENDATIONS FOR IMPLEMENTATION DURING PHASE I OF . ENERGY CONSERVATION PROGRAM AT THE SHREVEPORT ROOFING AND FELT Ml*> (2) TOTAL ENERGY CONSUMED BY BIRD & SON, inc. DURING 1978 - LEsb BIRD MACHINE COMPANY BIRD 011109 E'iCLOSi gc i; SUGGESTED RECOMMENDATIONS FOR IMPLEMENTATION DURING PHASE I OF THE ENERGY CONSERVATION PROGRAM AT THE SHREVEPORT ROOFING AND FEU MILL RECOHMEHUAIION NUMBER IN SHREVEPORT ENERGY CONSERVA TION SURVEY REPORT DATED 24 JULY 1978 ANNUAL HtumnoN IN COS! OF ENERGY THAT CAN BE REALIZED AS RECORDED IN SHREVEPORT ENERGY CONSERVATION SURVEY REPORT DATED 24 JULY 1978 ESTIMATED t OSI Ul IMPLEMENTING THE RECOMMENDATION GENERAL RECOMMENDATION 12 3A REMARKS 5 INVOICES ON FILE AT CORPORATE HEADQUARTERS INDICATE THAT THE SHREVEPORT MILL BEGAN RECEIVING NO.4 FUEL OIL DURING OCTOBER 1978. ACCORDING TO THE INVOICE FILE. BOTH NO.2 FUEL OIL AND NO.4 FUEL OIL HAVE BEEN RECEIVED AT SHREVEPORT DURING THE PERIOD OCTOBER 1978 THROUGH JUNE 1979. A REVIEW OF THE INVOICES INDICATES THAT SOME DELIVERIES OF NQ.2 FUEL OIL ARE COOED INCORRECTLY AND APPEAR ON THE MONTHLY COMPUTER PRINTOUT (AP0-550-3D) AS NO.4 FUEL OIL DELIVERIES. OTHER INVOICES INDICATE CONSECUTIVE DELIVERIES OF H0.2 FUEL OIL AMO N0.4 FUEL OIL AT THE SAME PRICE - A PRICE CORRESPONDING TO THAT OF NO.2 FUEL OIL. THUS, IT APPEARS FROM THE INVOICES THAT SOME DELIVERIES NAVE BEEN INVOICED AS NO.4 FUEL OIL, BUT PRICED AS NO.2 FUEL OIL. THE INVOICES INOICATE THAT THE SHREVEPORT MILL HAS BEEN BURNING A MIXTURE OF N0.4 FUEL OIL AND RECOMMENDATION TO SHIFT FROM NO.2 FUEL OIL SINCE OCTOBER 1978, 4.1 NO.2 FUEL OIL TO NO.6 FUEL OIL $270132. B4 $175000.00 WITH THE INVOICES INDICATING A AS BOILER FUEL SUBSTANTIAL COMPONENT OF N0.2 FUEL OIL IN THIS MIXTURE. MO.4 FUEL OIL IS USED IN SMALL VOLUMES THROUGHOUT THE UNITED STATES AND APPARENTLY WAS NOT ALWAYS AVAILABLE IN THE SHREVEPORT AREA. A BONA FIDE TECHNICAL CAPABILITY TO BURN NO.6 FUEL OIL WOULO MAKE IT POSSIBLE TO BURN THIS LOW COST AW) AVAILABLE FUEL WHEN NATURAL GAS SERVICE IS CURTAILED. THE SHREVEPORT HILL SHOULD BE EQUIPPED WITH THE TECHNICAL CAPABILITY TO BURN NO.6 FUEL OIL, AND ACTION SHOULD 8E INITIATED TO ACQUIRE THT LEGAL lNMTILMLNT-TO RIU'N W ' " OIL. THIS WILL PROVIDE 'H ADDITIONAL BENEFIT OF BUNG SURCHAHQED AT A LOWER RAIE TOR NATURAL GAS IN THE BOILERS WHEN PHASE 1 OP THE INCREMENTAL PRICING PROGRAM UNDER TITLE II OF THE NATURAL GAS POLICY ACT OF 1978 GOES INTO EFFECT ON I JANUARY 1980. RECOMMENDATION TO INSTALL 4.5 ECONOMIZERS ON NO.J. NO. 2. AND $82095.54 $100000.00 NO.3 BOILERS BIRD 011110 SUGGESTED REC0MMEN0ATIONS FOR IMPLEMENTATION OURING PHASE l OF THE ENERGY CONSERVATION PROGRAM AT THE 5IIREVEP0RT ROOFING AND FELT MILL RECOMMEN DATION NUMBER IN SHREVEPORT ENERGY CONSERVA TION 5URVEY REPORT DATED 24 JULY 1978 1 GENERAL RECOMMENDATION 2 ANNUAL RLIIUCrUIN IN COST Or ENERGY THAT CAN BE REALIZED AS RECORDED IN SHREVEPORT ENERGY CONSERVATION SURVEY REPORT DATED 24 JULY 1978 ESIiMATED (U'.l III IMPLEMENTING HIE RECOMMENDATION 34 REMARKS 5 4.3 4.4 4.7 4.8 4.9 PART OF 4.2 RECOMCKOATION TO REDUCE STEAM CONSUMPTION BY THE ROOFING MILL TO A LEVEL EQUAL TO THAT FOR COMPARABLE LOADS AT THE NORWOOD ROOFING PLANT OURING 1975 $147735.48 $20000.00 (initial cost) .20000.00 annual maintenance cost) RECOWENOATION COVERING THE INSTALLATION QF EQUIPMENT FOR THE CONTINUOUS INDICATING AND RECORDING OF STACK GAS CONSTITUENTS FOR NQ.1, NO.2, AND NO.3 BOILERS AND FOR THE PRECISE CONTROL OF AIR SUPPLIED TO BOILERS $147705.23 $75000.00 RECQHCNOATION TO TERMINATE OPERATION OF THE GAS-FIRED VAPOR ABSORPTION SYSTEM HOT AIR HEATER FOR DSPM-1 AND RECIRCULATE THE AIR EXHAUSTED FROM NO.3 AND NO.4 EXHAUST STACKS OF OSPM-1 TO THE VAPOR ABSORPTION SYSTEM OF OSPM-1 $72036.61 $50000.00 RECOWENDATION COVERING THE INSTALLATION OF A HEAT RECOVERY UNIT ON NO.I EXHAUST STACK OF OSPM-1 FOR USE IN HEATING BOILER HAKE-UP FEEO WATER $33749.9* $50000.00 N ) /\ .. RECOMMENDATION COVERING THE INSTALLATION OF A HEAT RECOVERY UNIT ON NO. 2 EXHAUST STACK OF DSPM-1 FOR USE IN PREHEATING COMBUSTION AIR FOR NO.l. NG.2. AND NO.3 BOILERS $31356.95 S60000.00 INSTALL LINES NECESSARY FOR RETURNING CONDENSATE FROM FSPM-10. FSPM-I3. AND THE ASPHALT STORAGE AND PROCESSING AREA TO THE BOILER ROOM 133656.52 (line 71 of para 5.2 of $30000.00 report dated 24 ,'uly 1978) , CONDENSATE IS RETURNED TO THE BOILER ROOM FROH THE ROOFING MACHINES AND ASPHALT STORAGE - PROCESSING APEA AT THE OTRWv'i- ROUTING Mill AVP AI ' ( 1 . HOOIING AND FLL1 MILL SHREVEPORT FELT HILL REPORT DATED 28 APR 1979 INSTALL RECIPROCATING VALVES IN EACH QF THE THREE (3) OEfIBRATOR BLOW LINES AND MODIFY THE THREE (3) QUENCH CYCLONES AS NECESSARY TO MAINTAIN A FIXED STOCK LEVEL IN EACH CYCLONE $43136.49 (line 100 of Enel.(I) to report dated 28 April 1979) $54000.00 RECIPROCATING VALVES ARE INSTALLED ON THE OEFIBRATOR BLOW LINES TOR ALL THE DEFIBRATORS INSTALLED AT PHILLIPSDALE ANO FRANKLIN, RESULTING IN A SIGNIFICANT REDUCTION IN THE VOLUME OF STEAM VENTED TO ATMOSPHERE FROM THE SYSTEM BIRD 011111 L\lit.,s -I . Tu'Al Lf. *jY Ct-USOMiD [>!- J 1 S'JM, in c. OCRING 1978 - IE:.: 3IRC "AC-iINE CO. NO.b ion -.In TOTAL TOTAL C0HSLMEC BTJC nl.4 H'El oil tctai LL'NSl MFC TOTAL BTUS nc.J* it U GIL TOTAL TOTAL CONSUMED ITUS DIESEL OIL TOTAL CONSUMED TOTAL BTUS LIME no. PLANT LOCATION t2 CORPORATC i HEADQUARTERS GALS 3 Col. 3 x 144800 MHEIUS 4 19583 8E~5 2 N0RWU30 21S1540 38C25C 3 PH1LLIPSDALE 6875114 1009267 4 PERTH AMBGY 1G24968 150465 L-ALS 5 Cel. *) x KOuGU KHb'US 6 GALS 7 Cot. 6 x 136856 MMGTUS 8 GALS 9 cl 3922 84019 41761 5715 Col. 9 * 136856 , MMBTUS 10 5 CHARLESTON 6 Shreveport 7 GLENUOOQ a ST. MATTHEWS 270434 9 FRANKS IK 10 CHICAGO FELT 1919033 11 CHICAGO ROOFING 12 BARQSTOWN 13 PORTLAND 54180 14 MARTINEZ 39700 177837 24897 281714 7954 - 138813 18997 3040685 416136 21157 2895 480964 2639306 65823 361205 20079 274S 91152 52328 12475 7161 500 1800 6S 246 _J_ RANCHO CORDOVA 16 WILMINGTON 17 EAST WALPOLE 8062191 1183530 19 LAWRENCE 20 UWISTCA 21 HILL IIIYILION 22 ALL OTHER V 23 10IAL 20407043 2995/55 177837 4/16 1 21945 3004 645 11653 1595 223124 30536 24897 7144883 977819 259076 35449 BIRD 011112 ENCLOSURE (2) TOTAL ENERGY CONSUMED BY BIRO & SON, me. DURING 1978 - LESS BIRO MACHINE CO. GAMJLINE KEROSENE NATURAL GAS PROPANE LINE NO. TOTAL CONSUMED TOTAL BTUS TOTAL CONSUMED Coi. n *x 124952 TOTAL BTUS Col. 13 X lbuUO TOTAL TOTAL CONSUMED' BTUS Col. 15 x (1000! x (1031) TOTAL CONSUMED TOTAL BTUS Cot. 17 x 91614 PLANT LOCATION GALS MMBTUS GALS MMBTUS MCF WBTOS GALS MMBTUS 12 CORPORATE 1 HEADQUARTERS 11 12 13 14 15 ,6 17 18 2 NORWOOD 2937 367 8042 8291 81792 7493 3 PHILL1PS0ALE 7335 917 27389 2509 4 PERTH AMBOY 1496 187 81S4 3407 25480 2334 5 CHARLESTON 6 SHREVEPORT 7 GLEKUOOO 8 ST. MATTHEWS 6045 10579 3000 755 1322 375 172122 23236 227174 716542 12168 22216 234216 43586 738755 12545 107704 2500 22905 3808 3993 9867 229 349 9 FRANKLIN 7918 10 CHICAGO FELT 11 CHICAGO ROOFING 12 BARDSTONN 13 PORTLAND 1797 14 MARTINEZ 989 225 520 70 650 88 - 202171 27657 70219 20276 186656 139451 208438 28514 72396 20105 192442 143774 35958 14027 15523 3024 25358 27923 3294 12BS 1422 277 2323 2558 15 RANCHO CORDOVA 16 WILMINGTON 17 EAST WALPOLE 1351 169 26823 27655 123305 26414 nrq6 2420 14473 1326 18 SHOE CARTON 19 LAURENCE 20 LEWISTON 21 HILL DlYIbUU, 22 ALL OIHLR 23 TOTAL Hi 190 60648 t. !S 1-7-) 173292 1007 5465 1038 5634 6423 Era! 8644 8912 16391 I 'HI." 23394 1682665 1734827 601078 55065 BIRD 011113 ENCLOSURE (2) UrtOlAL ENLROl CONSUMED BIRD & SON. inc, DURING 131a - LESS BIRD MACHINE CO. LINE NO ?'.Mr MfATIPN PURCHASED STEAM TOTAL ENERGY CONSUMED IN FORM OF HFAT tctal energy cc NSUMEO IN FORM or electri CAL POWER TOTAL CONSUMED LBS TOTAL RT'JS FROM FUEL Coi. iy x 1CJ0 t .75 MMBTUS TOTAL BTUS IN FORM OF nEAT E'.tP 3Y 6*8+10+ 12+14+16+ 18+20 MMBTUS FRACTION OF TOTAL TOTAL mm TOTAL TOTAL PURCHASED sJpl!|d 81 8 IRQ & SON ELECTRICAL BIRD A SON ELECTRICAL inc. BTUS PUWLR u IN FORM 01 "rRiRASEJ HEAT UtL <iVitrtL POWER Col.21 + Col.23 x Inc. GENERATED CONSUMED POWER CONSUMED 1 me 23 oi ^GOOOl Col.21 KWH MMBTUS KWH KWH i2 19 20 21 22 23 CORPORATE i HEADQUARTERS 2875 .00048 24 25 26 2496000 (INCL.B8H) 2496000 2 NORWOOD 420420 .07070 9362000 9362000 3 PHILLIPSDALE 4 PERTH AMBOY 5 CHARLESTON 61403462 81871 1012693 249159 297661 .17031 14205000 142050 18729000 32934000 .04190 4T67200 41672 4167200 .05006 6576000 65 760 6576000 6 SHREVEPORT 1214281 .2042I 33635450 336354.5 33635450 ; GLENWOOD 1E290 .00274 1334160 13341.6 1334160 8 ST. TTHEWS 9 FRANKLIN 89077 573996 .0149B 3014400 30144 .09653 12576699 125767 3014400 12576699 10 CHICAGO FELT 11 CHICAGO ROOFING 311513 76566 .05239 .01288 7748280 77482.8 1423822 14238.2 7748280 1423822 IS BARDSTOUK .u,, PORTl'ND 14 MARTINEZ 15 RANCHO CORDOVA 16 WILMINGTON 17 EAST WALPOLE . IS SHOE CARTON 10 (AWRFNCE 20 LEWISTON 7020000 9360 21182 .00356 10038000 100380 215507 .03624 5349000 53490 153493 `.02581 2856960 28569.6 10038000 5349000 2856960 11296 .0019(1 345983 3459.8 345963 39435 1185025 1626 .00683 .19929 .00027 2215602 1304606 Z1282 22156 13046 22.:o`. 29513000 (INCL.PWK PLANT! 30817606 212.8 1627000 21222 8638 7240 .00145 .00038 462600 46990 4626 469.9 462600 '*) 21 HSU OIVISLO'. ,,Y Vi 011 L**' i 1 ,1AI 01*4' ll.Mi 30516 VA`? u .00514 .0U2I; 3761411 J76I.5 . 9*)'**1" 10769A! 11? U/1.91Y 6172700(1 169425182 BIRD 011114 APPENDIX 2 MEMORANDUM T* R. W. Hawkins - FF From J. P. Hratko - 8E 23 October 1979 Smtiut RECOMMENDATIONS COVERING DEPLOYMENT OF BLOWING STILLS AT FRANKLIN DURING PERIOD WHEN BOTH ROOFING MACHINES ARE IN A TWO-SHIFT OPERATING CONFIGURATION 1. PURPOSE: The purpose of this report is to set forth reconmendations covering two (2) operating modes for deployment of the horizontal blowing stills at Franklin during periods when FFPM-10 and FFPM-11 are both in a two-shift operating configuration, so as to reduce or eliminate the need to purchase high-priced refined asphalt in lieu of low-cost raw flux. 2. SUMMARY: The blowing stills at Franklin are a valuable resource that shouji be deployed so as to realize maximum utilization (i.e., on schedules that will permit production of all requirements for the more expensive refined asphalt products from lower-priced raw flux). ) The extent to which the blowing stills approach maximum possible productive utilization is a function of the level of close supervision allocated to the management of the asphalt blowing facilities. The two (2) recommended operating modes differ essentially in the level of management supervision required for successful operation. The calculated reduction in monthly cost of asphalt that can be realized by implementing either of the two (2) recommendations, based on September 1979 operating data and computed at September-October 1979 asphalt prices in the Franklin area, is set forth below; Number of subparagraph in which recommendations are set forth Comparative level of management supervision required for successful implementation Monthly reduction in cost of. asphalt that can be realized - based on Sept 1979 operations Annual reduction in cost of asphalt that can be realized - based on Sept 1979 operations Reduction in cost per ton of roofi ng produced S/TON 5.a Lower $55,197.60 $662,371.20 $5.22 6.a Higher. $81,059.26 $972,711.12 $7.67 The recommendations that must be implemented to realize these substantial cost reductions do not require any capital investment. It is only necessary to institute changes in operating procedures. -- BIRD 011115 RECOMMENDATIONS COVERING DEPLOYMENT OF BLOWING STILLS AT FRANKLIN DURING PERIOD WHEN BOTH ROOFING MACHINES ARE IN A TWO-SHIFT OPERATING CONFIGURATION 23 October 1979 -2- The recommendations were developed on the basis of an analysis of the considerable volume of data collected on the asphalt storage and processing installation and on an assessment of the operating skills of the still men at Franklin. The recommended operating procedures are considered to be realistic and practical. The operating skills required for successful implementation are well within the demonstrated capability of the still men. All that is required is that a decision be made to implement the reconmendations and that the requisite level of supervisory management effort be applied on a continuing basis. It is considered that the reduction in costs that can be realized in implementing the recomended operating procedures is of a magnitude that more than justifies the extra effort required. 3. BACKGROUND: A review of computer printout AP0-550-3Q dated 2 October 1979, covering materials purchased during September 1979, indicated a large volume of saturant asphalt was purchased at Franklin during September 1979. Further inquiry revealed that the volume of saturant asphalt purchased during September 1979 was considerably larger than that indicated on AP0-550-30. Both the shingle machine (FFPM-10) and roll machine (FFPM-11) were operated simultaneously for two (2) shifts on twenty (20) days during September 1979. Due to this two-machine, two-shift operating schedule, which continues in effect now and is projected to continue into the future, it was apparently decided to dedicate all three (3) horizontal blowing stills to blowing raw flux to coating, with all requirements for saturant to be met by purchase of this refined product. This resulted in an increase of $81,509.26 in the cost of asphalt purchased during September 1979 over the cost that would have been incurred if raw flux had been purchased and all refined products had been produced on the premises. 4. THE ASPHALT BLOWING FACILITIES AT FRANKLIN: ' The following brief description of the asphalt blowing facilities and comments `regarding the operating characteristics of this equipment is based on data collected as part of the on-site energy survey work conducted during the periods 3-14 May 1979 and 22 June2 July 1979: a. Blowing Stills. Each of the three (3) horizontal blowing stills is eleven (11) feet in diameter and seventeen (17) feet in length. The volume of each still, if filled to 100% of capacity, is approximately 12,000 gallons. The volume of flux charged per still does not exceed 6,700 gallons in order to minimize carryover of flux into the fume duct. A limited number of tests conducted during June 1979 indicated that the flux charge volume could only be increased by a small amount before witnessing the adverse effects of flux carryover into the fume incineration system. BIRD 011116 RECOMMENDATIONS COVERING DEPLOYMENT OF BLOWING STILLS AT FRANKLIN DURING PERIOD WHEN BOTH ROOFING MACHINES ARE IN A TWO-SHIFT OPERATING CONFIGURATION 23 October 1979 -3- The temperature of the charge is held to approximately 500-510F during the latter part of the blowing cycle by introducing cooling water into the still .via a hose inserted in the cover installed over the top access opening. b. Blower. A Hoffman centrifugal compressor supplies blowing air to the three (3) horizontal blowing stills. The output of this compressor can be adjusted by manually positioning a damper to throttle the inlet to a level determined by the number of charges being blown. This compressor has the capacity to blow charges simultaneously in all three (3) horizontal stills. c. Fume Incinerator- A fume incinerator - without heat recovery - is employed to incinerate fumes from the three (3) horizontal blowing stills. Based on tests conducted on Sunday, 6 May 1979, the fuel (natural gas) input rate to the fume incinerator was calculated to be approximately 4,000,000 btus per hour. d. Coating Storage Tank. A single horizontal tank, eleven (11) feet.in diameter and thirty (30) feet in length, is provided for coatingstorage. This tank can hold 21,237 gallons when filled to It),; u: capacity. An immersion tube heater, fitted with a Maxon Series 78 burner sized to supply 1,100,000 btus/hour, maintains the circulated coating at a temperature of between 480F and 500F. e. Shingle Saturant Storage Tank. This tank is exactly the same as the coating storage tank described above. f. Asphalt Flux Working Storage Tank. A 50,000 gallon capacity vertical storage tank equipped with an immersion tube heater is employed for high temperature working storage of raw flux. The immersion tube is fitted with a Maxon Series 78 burner sized to provide heat input at the rate of 1,900,000 btus per hour. g. Reserve Asphalt Storage Tanks. There are three (3) steam-heated vertical storage tanks, each of 100,000 gallons capacity, for the reserve storage of flux. (One of these storage tanks is used for the storage of the lightly-blown saturant used by the roll machine, FFPM-11.) h. Softening Point Tests. There are no laboratory test facilities at the Still House. The Stills Operator does not conduct softening point tests. A technician from the Quality Control Laboratory draws the test sample and performs the softening point at"the Quality Control Laboratory. Multiple tests are not conducted near the end of the blowing cycle. BIRD 011117 RECOMMENDATIONS COVERING DEPLOYMENT OF BLOWING STILLS AT FRANKLIN DURING PERIOD WHEN BOTH ROOFING MACHINES ARE IN A TWO-SHIFT OPERATING CONFIGURATION 23 October 1979 '\ -4- 5. DEPLOYMENT OF THE THREE (3) HORIZONTAL BLOWING STILLS AT FRANKLIN IN AN OPERAfiNirrtobE REQUIRING A LOWEft LEVEL OK SUPERVISORY EFFORT DURING PERIODS WHEN BOTH RMFtN6 MACHINE'S ARE IN A TH6-SHiFT OPERATING CONFIGURATION: a. RECOMMENDATIONS Action Recomnended Supporting Comments D Dedicate two (2) blowing This deployment of facilities will stills to the production easily permit the production of 80% of coating asphalt on of the coating asphalt consumed on operating days. operating days when both roofing machines are operating two (2) shifts. 2) Dedicate one (1) blowing This will easily permit the production still to the production of all the saturant consumed on oper.v; of saturant on operating days when both roofing machines are days. operating two (2) shifts. 3) Blow coating and saturant This already is the standard operating on non-operating days to procedure at Franklin, and is included the level required such only to describe completely the ) that the coating and saturant operating recommended operating procedure for deploying the blowing facilities. storage tanks and al1 blowing stills are topped off at the start of the next operating day. 4) Purchase coating as necessary to make up shortfall in the capability for producing all coating required. At a maximum, this would have required the purchase of twenty-one (21) loads of coating (or 501.27 tons) during September 1979. 5) Install facilities in the This will permit making more frequent Still House for use by measurements of softening point at the the Sti1\s Operator in end of the blowing cycle so that the measuring softening point. blowing operation can be terminated Train the Stills Operator precisely at the proper time. This will in the procedure for reduce blowing time by avoiding blowing measuring softening point. to a higher softening point then is necessary. This is the procedure followed at Norwood, Charleston, and Shreveport - the three (3) other Bird & Son, inc. facilities at which asphalt is blown. ) ,/ ?. BIRD 011118 RECOMMENDATIONS COVERING DEPLOYMENT OF BLOWING STILLS AT FRANKLIN DURING PERIOD WHEN BOTH ROOFING MACHINES ARE IN A TWO-SHIFT OPERATING CONFIGURATION 23 October 1979 -5- 6) Set up a program for closely monitoring inventory levels.of finished product so that orders for coating can be placed for timely delivery. This is necessary in order to maximize use of the blowing stills and to permit rapid turn-around of the tanker delivering coating. b. ARGUMENT IN SUPPORT OF RECOMMENDATIONS COVERING DEPLOYMENT OF THE EXISTTflg BL'OW 1'NIT 'FA'CTl fTTl? 1) Blowing Still Operating Parameters Calculated Through an Analysis of the Daily Asphalt Oxidation Reports for April 1979> The data from the daily oxidation reports for April 1979 was transferred to a daily form ruled for 48 intervals of 1/2 hour per interval. This form allowed the data from the daily oxidation forms to be displayed in such a manner as to visually indicate the degree to which the blowing still facility was productively employed; productively employed is defined to include pump-in time, blowing time, and pump-out time. Enclosures (1) through (3) are an abstract of the daily statistics covering the operation of No.l, 2, and 3 blowing stills, respec t', during the month of April 1979. Enclosure (4), SUMMARY OF OPERATING DATA COVERING THE BLOWING STIi' AT THE FRANKLIN ROOFING MILL DURING APRIL 1979, yields the followi.-i data supporting the recommendations set forth in sub-paragraph 5.a. above: a) Total number of charges of flux blown to coating 76 b) Total number of charges of flux blown to saturant 70 c) Total number of charges of flux blown 146 d) Total flux blown to coating (23.87)x (76) 1814.12 Tons e) Total flux blown to saturant (23.87)x (70) 1670.9 Tons f) Total flux blown to refined products 3485 Tons g) Average still time required to blow a charge 11.057 Hrs of flux to coating (including pump-in and pump-out time) BIRD 011119 RECOMMENDATIONS COVERING DEPLOYMENT OF BLOWING STILLS AT FRANKLIN DURING PERIOD WHEN BOTH ROOFING MACHINES ARE IN A TWO-SHIFT OPERATING CONFIGURATION 23 October 1979 -6- h) Average still time required to blow a charge of flux to saturant (including pump-in and pump-out time) 4.438 Hrs i) Total productive operating time realized by the three (3) blowing stills 1150.98 Hrs j) Maximum available blowing still time during April 1979 (3)x(30)x (24) 2160 Hrs k) Fraction of maximum available blowing still .5329 time in which blowing stills were productively employed (1150.98) * (2160) 2) Asphalt Department Operating Data for September 1979. The following data* extracted from Enclosure (5), CALCULATED REDUCTION IN COST OF ASPHALT THAT COULD HAVE BEEN REALIZED AT THE FRANKLIN ROOFING AND FELT MILL DURING SEPTEMBER 1979 IF TWO (2) BLOWING STILLS HAO BEEN DEDICATED TO BLOWING COATING WITH THE THIRD BLOWING STILL DEDICATED TO BLOWING SATURANT AND AN AVERAGE OF ONE (1) LOAD OF COATING HAD BEEN PURCHASED PER OPERATING DAY, is compared to that outlined in sub-paragraph B.h.l) above: Enclosure (4) Enclosure (5) data covering data covering April 1979 September 1979 Item operations operations a) Total number of charges of flux blown to coating 76 no b) Total number of charges of flux blown to saturant 70 3 c) Total number of charges of flux blown 146 113 d) Total flux blown to coating 1814.12 Tons 2625.7 Tons e) Total flux blown to saturant 1670.9 Tons 71.61 Tons f) Total flux blown to refined products 3485.0 Tons 2697.3 Tons BIRD 011120 RECOf-WENDATIONS COVERING DEPLOYMENT OF BLOWING STILLS AT FRANKLIN DURING PERIOD WHEN BOTH ROOFING MACHINES ARE IN A TWO-SHIFT OPERATING CONFIGURATION 23 October 1979 -7- 9) Average still time 11.057 Hrs required to blow a charge of flux to coating (including pump-in and pump-out time) 11.057 Hrs (assumed to be the same as for April 1979) h) Average still time 4.438 Hrs required to blow a charge of flux to saturant (including pump- in and pump-out time) 4.438 Hrs (assumed to be the same as for April 1979) D Total productive 1150.98 Hrs 1229.58 Hrs operating time realized (110x 11.057) by the three (3) blowing plus stills (3 x 4.438) 5) Maximum available blowing 2160 Hrs time during April/ September 1979 2160 Hrs k) Fraction of maximum available blowing still time in which the blowing stills were productively employed .5329 .5693 During September 1979, there was only a 6.83% increase in the time the blowing stills were productively employed over the figure for April 1979, however, there was a 22.6% reduction in tonnage of raw flux blown during September 1979 when compared to the tonnage of raw flux blown during April 1979. 3) Estimated Blowing Still Production Data During September 1979 if the Operating Procedures Recommended in Sub-Paragraph 5.a Had Been In Effect. Enclosure (6), CALCULATION OF DAILY PURCHASES OF COATING ASPHALT THAT WOULD HAVE BEEN REQUIRED AT THE FRANKLIN ROOFING AND FELT MILL DURING SEPTEMBER 1979 IF TWO (2) BLOWING STILLS HAD BEEN DEDICATED TO BLOWING FLUX TO COATING AND THE THIRD BLOWING STILL HAD BEEN DEDICATED TO BLOWING FLUX TO SATURANT, demonstrates that: All requirements for saturant could have been satisfied. Assuming (conservatively) that no more than four (4) charges of flux would be blown to coating per operating day, it would have been necessary to purchase only 501.27 tons of coating during September 1979. BIRD 011121 RECOMMENDATIONS COVERING DEPLOYMENT OF BLOWING STILLS AT FRANKLIN Oi'R'NG PERIOD WHEN BOTH ROOFING MACHINES ARE IN A TWO-SHIFT OPERATING CONFIGURATION 23 October 1979 -8- c. CALCULATED REDUCTION IN COST OF ASPHALT PURCHASED AT FRANKLIN THAT cOOLD HAVE BEEN REALIZED-!r'TRt "OPERATING"PRO'C'fbURET RECOMMENDED IN SUB-PARAGRAPH 5.a HAD BEEN IN EFFEct DURING SEPTEMBER 1979. According to the calculations developed In lines 50 through 56 of Enclosure (5), the total decrease in cost of asphalt that could have been realized during September 1979 if the recommended operating procedures had been in effect was calculated at $55,197.60. On an annual basis, this computes to $662,371.20 per year. d. IMPLEMENTATION OF THE RECOMMENDATIONS SET FORTH IN SUB-PARAGRAPH 5,a. The recommendations set forth in sub-paragraph 5.a cover operating procedures which: 1) Do not require any capital investment. 2) Can be implemented immediately. 3) Are well within the capability of operating personnel. 4) Require only a modest level of supervisory effort by management personnel. 5) Do not have any impact on the decisions to be ultimately made with regard to the uncompleted new asphalt blowing facilities at Franklin. 6. DEPLOYMENT OF THE THREE (3) HORIZONTAL BLOWING STILLS AT FRANKLIN IN AN OPERATING MODE REQUIRING A HIGHER LEVEL Of SUPERVISORY EFFORT DURING PERIODS 'when OOTh RffOFlNG MACHTNES' SEE IQ ffeHIFT OPERATING CONFIGURATION a. RECOMMENDATIONS Action Recoircnended Supporting Comments 1) Dedicate a minimum of two (2) blowing stills to the production of coating asphalt on operating days. This deployment of facilities will easily permit the production of 80% of the coating asphalt consumed on operating days when both roofing machines are operating two (2) shifts. Enclosure (7) displays the status of each blowing still over a 24-hour, two (2) shift operating day under this operating mode. 2) Dedicate one (1) blowing This will easily permit the production still to the production of a]_l_ saturant consumed on operating of saturant on selected days when both roofing machines are operating days. operating two (2) shifts. Enclosure {/ displays the status of each blowing still over a 24-hour, two (2) shift operating day under this operating mode. BIRD 011122 RECOMMENDATIONS COVERING DEPLOYMENT OF BLOWING STILLS AT FRANKLIN DURING PERIOD WHEN BOTH ROOFING MACHINES ARE IN A TWO-SHIFT OPERATING CONFIGURATION 23 October 1979 -9- 3) Dedicate one (1) of the This will permit productive utilization steam-heated 100,000 of the blowing stills during an "off- gallon capacity asphalt peak" period. On operating days, storage tanks as a saturant can be withdrawn from storanp. reserve saturant storage reducing the requirement tor bk-wiw tank. saturant on operating days. This will provide more blowing still time on operating days for the production of coating (which has a much longer blowing interval and for which reserve storage facilities are not available). Enclosure (8) displays the status of each blowing still over a 24-hour period on non-operating days when all blowing stills are dedicated to blowing saturant. 4) Dedicate 2 1/2 blowing On such selected days, only two (2) stills to the production charges of flux can be blown to saturant. of coating on selected The remaining requirement of 2 or 3 operating days. charges can be withdrawn from the reserve saturant storage tank. Enclosure (9) displays a typical weekly production schedule for the blowing stills deployed in accordance with the recommendations in this paragraph. 5) Blow coating and saturant This already is the standard operating on non-operating days to procedure at Franklin, and is included the level required such only to describe completely the that the coating and recommended operating procedure for saturant operating deploying the blowing facilities. storage tanks and all blowing stills are topped off at the start of the next operating day. 6) Install facilities in the This will permit making more frequen<- Still House for use by measureinents of softening point at th the Stills Operator in end of the blowing cycle so that the measuring softening blowing operation can be terminated point. Train the Still precisely at the proper time. This wi: Operator in the procedure reduce blowing time by avoiding blowing for measuring softening to a higher softening point then is point. necessary. This" is the procedure followed at Norwood, Charleston, and Shreveport - the three (3) other Bird & Son, inc. facilities at which asphalt is blown. BIRD 011123 RECOMMENDATIONS COVERING DEPLOYMENT OF BLOWING STILLS AT FRANKLIN DURING PERIOD WHEN BOTH ROOFING MACHINES ARE IN A TWO-SHIFT OPERATING CONFIGURATION 23 October 1979 -io ta. ARGUMENT IN SUPPORT OF RECOMMENDATIONS COVERING DEPLOYMENT OF GlOwinG STlLIS " 1) Blowing Still Capacity Utilization. The operating schedule displayed in Enclosure (9)'will produce from raw flux all the refined asphalt products required to support operation of both roofing machines for twenty (20) hours per day over a five (5) consecutive operating day interval. 2) Reserve Saturant Storage Tank. The conversion of twelve (12) charges of raw flux into saturant in accordance with the recommendations in 6.a.3) will produce 286.44 tons (23.87x12) of saturant. One of the 100,000 gallon steam-heated storage tanks will be of adequate capacity for deployment as a reserve saturant storage tank. The operating schedule developed in Enclosure (8) takes into consideration the fact that a common line is used to charge flux into the blowing stills and to pump saturant out of the blowing stills and into the reserve saturant storage tank. Pumpinq delays resulting from this piping configuration have Deen incorporated into the schedule in Enclosure (8). 3) Maintenance Time. The schedule developed in Enclosure (8) allows for an average of sixteen (16) hours per week per blowing still for maintenance. This should be more than sufficient time for normal cleaning and maintenance. 4) Supervisory Effort Required. The operating mode recommended in sub-paragraph 6.a requires a higher level of supervisory effort than that for the operating mode recoitmended in sub-paragraph 5.a. However, the level of supervisory effort required is reasonable. The reduction in cost of asphalt that can be realized as a result of the additional attentional devoted to the asphalt blowing facility is well-worth the modest additional effort. c. CALCULATED REDUCTION IN COST OF ASPHALT PURCHASED AT FRANKLIN THAT COULb HAVE REALIZED IF THE OPERATING PROCEDURES RfeCdMMENDED IN SUB-PARAGRAPH 6.a HAD BEEN IN EFFECT DUriNG SEPtEmbEr 1979. According to the calculations developed in Enclosure (5), the total decrease in cost of asphalt that could have been realized during September 1979 if the reconmended operating procedures had been in effect was calculated at $81,059.26 (line 56). On an annual basis, this computes to $972,71 ].'. The reduction in cost of asphalt is equal to approximately $7.71 per ton of roofing produced. BIRD 011124 RECOMMENDATIONS COVERING DEPLOYMENT OF BLOWING STILLS AT FRANKLIN DURING PERIOD WHEN BOTH ROOFING MACHINES ARE IN A TWO-SHIFT OPERATING CONFIGURATION 23 October 1979 - 11 - d. IMPLEMENTATION OF THE RECOMMENDATIONS SET FORTH IN SUB-PARAGRAPH 6.a. The recommendations set forth In sub-paragraph 6.a cover operating procedures which: 1) Do not require any capital investment. 2) Can be implemented irnneoiately. 3) Are well within the capability of operating personnel. 4) Require a fairly high level of supervisory effort by management personnel. 5) Do not have any impact on the decisions to be ultimately made with regard to the uncompleted new asphalt blowing facilities at Franklin. 7. GENERAL COMMENT: The calculations developed in Enclosure (5) did not consider: (1) the increased electrical power consumed by the blower under the recommended system, and (2) the possible increase in shrinkage of flux in blowing the larger volumes of flux under the recommended system. ) Under the recommended system, the total blowing still hours when in an operating configuration (pump-in, plus blowing, plus pump-out time) would have Increased to 1385.04 hours from the actual figure of 1229.58 hours during September 1979. This would have resulted in increased electrical power consumption valued at approximately $200.00 during September 1979. The possible increase in asphalt shrinkage losses would be insignificant inasmuch as the increased shrinkage incurred in blowing a larger volume of flux to saturant in a short blowing process would be offset by the decreased shrinkage incurred in blowing a smaller volume of fiux>fc$ coaling in a long blowing proces- JPH/dv cc: G. L. Dusty - BE J. A. Hixon - BB G. A. Sayres - MF F. W. Wood - BBR Enclosure (1) DAILY STATISTICS COVERING THE OPERATION OF N0.1 BLOWING STILL AT THE FRANKLIN ROOFING MILL DURING APRIL 1979 (2) DAILY STATISTICS COVERING THE OPERATION OF NO.2 BLOWING STILL AT THE FRANKLIN ROOFING MILL DURING APRIL 1979 BIRD 011125 RECOMMENDATIONS COVERING DEPLOYMENT OF BLOWING STILLS AT FRANKLIN DURING PERIOD WHEN BOTH ROOFING MACHINES ARE IN A TWO-SHIFT OPERATING CONFIGURATION 23 October 1979 - 12 - Enclosure (3) DAILY STATISTICS COVERING THE OPERATION OF NO.3 BLOWING STILL AT THE FRANKLIN ROOFING MILL DURING APRIL 1979 (4) SUMMARY OF OPERATING DATA COVERING THE BLOWING STILLS AT THE FRANKLIN ROOFING MILL DURING APRIL 1979 (5) CALCULATED REDUCTION IN COST OF ASPHALT THAT COULD HAVE BEEN REALIZED AT THE FRANKLIN ROOFING AND FELT MILL DURING SEPTEMBER 1979 IF TWO (2) BLOWING STILLS HAD BEEN DEDICATED TO BLOWING COATING WITH THE THIRD BLOWING STILL DEDICATED TO BLOWING SATURANT AND AN AVERAGE OF ONE (1) LOAD OF COATING HAD BEEN PURCHASED PER OPERATING DAY (6) CALCULATION OF DAILY PURCHASES OF COATING ASPHALT THAT WOULD HAVE BEEN REQUIRED AT THE FRANKLIN ROOFING AND FELT MILL DURING SEPTEMBER 1979 IF TWO (2) BLOWING STILLS HAD BEEN DEDICATED TO BLOWING FLUX TO COATING AND THE THIRD BLOWING STILL HAD BEEN DEDICATED TO BLOWING FLUX TO SATURANT (7) RECOMMENDED ASPHALT BLOWING SCHEDULE FOR THE FRANKLIN ROOFING MILL WHEN ROOFING MACHINES FFPM-10 AND FFPM-11 ARE BOTH IN A TWO-SHIFT OPERATING CONFIGURATION (8) RECOMMENDED SCHEDULE FOR BLOWING FLUX TO SATURANT AT FRANKLIN ON ROOFING MILL NON-OPERATING DAYS (FFPM-10 AND FFPM-11 BOTH NOT IN OPERATION), WITH BLOWN SATURANT PUMPED INTO RESERVE SATURANT STORAGE TANK (9) RECOMMENDED SCHEDULE FOR DEPLOYMENT OF BLOWING STILLS AT FRANKLIN DURING WEEKS WHEN BOTH FFPM-10 AND FFPM-11 ARE IN A TWO-SHIFT OPERATING CONFIGURATION FROM MONDAY THROUGH FRIDAY BIRD 011126 ENCLOSURE 0) DAILY STATISTICS COVERING THE OPERATION OF NO.l BLOWING STILL AT THE FRANKLIN ROOFING HILL DURING APRIL 1979 BLOWING TINE BLOWING COATING BLOWING SATURANT TOTAL BLOWING TIHE PRODUCTION COATING SATURANT TOTAL PRODUCED PRODUCED PRODUCTION MELT POINT COATING SATURANT TEWERATURE OF CHARGE AT START OF BLOWING DATE DAY OF WEEK 12 HINS 3 1S 2H 620 3T 4W 600 600 5 TH 510 6F 7s 395 8s 9H 10 T 210 420 210 11 W 700 12 TH 420 13 F 14 S 15 s 16 H 590 600 17 T 18 W 605 570 19 TH 600 20 F 410 21 S 150 22 S 23 H 24 T 210 615 630 25 W 660 26 TH 615 27 F 28 S 29 S 30 H 375 - 210 645 TOTAL /AVG. 12270 Col.3 t Col. 4 Col.6 < Col. 7 MINS 4 HINS 5 TONS 6 TONS 7 TONS 8 620 25 25 140 740 25 25 50 600 25 25 510 25 395 25 25 25 150 360 25 25 420 25 25 210 700 25 420 25 25 25 690 160 760 165 770 200 770 600 205 615 195 345 210 150 765 420 1050 420 1080 460 1065 225 600 25 25 25 25 25 25 25 25 '25 25 . 50 25 50 50 50 25 . 50 SO 25 25 50 25 50 75 Z5 50 75 25 50 75 25 25 50 285 180 3345 495 825 15615 25 25 25 500 450 1-1 25 50 950 F F F 9 10 11 259 450 255 145 450,475 258 480 255 450 243 133 500.475 235 450 213 490 243 240 490 240 128 410,500 239 129 395,430 254 131 395,450 250 465 229 125 380 117,137 490,400 500 232 130 465,425 588,"" 237 128.139 400.450 stir* 226 125,114 410,460 229 112,126 370, 234 126 385 237 240.4 145 126 128.7 500,490 455,340 438.7 BIRD 011127 tniLUsuKt ui DAILY STATISTICS COVERING THE OPERATION OF N0.2 BLOWING STILL AT THE FRANKLIN ROOFING MILL DURING APRIL 1979 BLOWING TIME BLOWING COATING SLOWING SATURANT TOTAL BLOWING TIME PRODUCTION COATING SATURANT TOTAL PRODUCEO PRODUCED PRODUCTION MELT POINT COATING SATURANT TEWERATURE OF CHARGE AT START OF SLOWING DATE I OAY OF WEEK 2 MINS 3 1s 2K 620 3T 4W 1025 750 S TH 600 6F 7S 530 380 3S 9H TO T nW 12 TH 210 540 510 700 480 13 F 14 S 15 S 16 M 210 600 17 T 18 M 19 TH 20 F 21 s 22 s 23 H 24 T 25 W 26 TH 1005 720 600 530 390 210 925 1180 1265 540 27 F 965 28 S' 29 S 30 H ISO 750 noo TOTAL /AVG. 17485 Col.3 + Col .4 MINS 4 MINS 5 TONS 6 280 900 1025 185 935 175 775 320 850 200 580 150 360 145 685 160 670 200 900 210 690 25 50 25 25 25 25 25 25 25 25 Co1.fi * col .7 TONS 7 TONS 8 F 9 F F 10 n 455, 50 75 223 129,130 460,450 50 244,240 440,325 25 50 241 148 390,440 25 50 50 75 25 50 25 - 25 25 50 25 50 244 129 400,450 385. 236 127,132 385.425 250 129 375 126 480,460 233 126 450,480 248 129 415,430 25 50 218 131 395,470 25 50 217 134 400 180 330 350 230 200 195 165 285 140 4100 390 930 1005 , 1070 830 730 585 210 1090 1180 1265 825 965 150 890 noo 21585 | 25 25 50 50 25 50 25 25 25 25 25 25 50 25 SO 50 25 25 50 25 25 50 750 2-2 575 25 75 50 75 50 50 50 75 50 SO 50 50 50 50 1325 233 242,245 220 238 138 129,125 120.120 139 490,470 400, 425,490 395,450 370, 380,365 360,465 225 134 375,450 246 124 405 212.244 244,248 227,261 234 129 139 450 460, 460,340 385,340 400,450 380 238,238 465,375 430 242 131 425,450 245,222 235.9 130.4 460,475 422.6 BIRD 011128 ENCLOSURE (3) OAILY STATISTICS COVERING THE OPERATION OF N0.3 BLOWING STILL AT THE FRANKLIN ROOFING HILL DURING APRIL 1979 BLOWING TIME BLOWING COATING BLOWING SATURANT TOTAL BLOWING TIME PHODUCTION COATING SATURANT TOTAL PRODUCED PRODUCED PRODUCTION MELT POINT COATING SATURANT TEHPERATURE OF CHARGE AT START OF BLOWING DATE 1 DAY OF WEEK 2 1S 2M MINS 3 620 3T 4w 600 600 5 TH 600 6F 7s as 9M 10 T 530 380 210 540 600 11 W 580 12 TH 380 13 F 14 S IS S IS M 210 600 17 T 18 w 605 950 19 TH 630 20 F 495 21 S 390 22 S 23 H 24 T 210 615 615 25 W 600 26 TH 1085 27 F 405 28 S 29 S 30 M 600' 630 645 T0TA1 /AVG. 14925 Col.3 + Col .4 MINS 4 MINS 5 TONS 6 Col.6 + Col.7 TONS 7 TONS 8 F 9 F F 10 n 140 760 265 865 360 960 360 960 25 25 25 25 25 50 50 75 50 . 76 50 75 236 129 455,400 420, 238 141.131 440.390 370, 245 122,140 390,430 360, 238 122 ,135 390,430 190 720 25 25 50 256 150 385.460 180 560 25 25 50 236 131 370 150 360 25 25 TIB 485.510- 540 25 25 252 500 325 925 25 50 75 230 134,126 415, 435,475 375,' 300 880 2S 50 75 249 126,132 410,450 320 700 25 50 75 247 129,117 375.400 180 355 455 150 160 190 415 120 280 4895 390 600 960 950 1085 495 390 210 765 775 790 1085 820 7Z0 630 925 19820 25 25 25 50 50 25 SO 25 25 25 25 25 25 25 25 50 25 50 25 25 25 25 50 650 725 3-3 25 25 75 50 75 25 25 50 50 50 50 75 50 25 75 1375 261 237 245,255 236 266 263 255 272 264 257,260 248 235 256 228 248.3 147 133,142 130,160 490,480 460 380, 390,340 375,420 360, 385,465 490 130 122 117 122,130 "9 134,123 130.8 475 468,450 380,475 400,385 360,375 366, 400,500 375-475 475 455, 460,460 423.2 BIRD 011129 ENCLOSURE (4) SUfHARY OF OPERAT ING DATA COVERING THE BLOWING STILLS AT THE FRANKLIN ROOFING HILL DURING APRIL 1979 LINE SUB-PARAGRAPH NO.- .........thle_ ITEM 1 ftPNPOAi DATA WEIGHT OF FLUX PER CHARGE TO STILL AVERAGE TOTAL PUMPING TIME REQUIRED TO CHARGE A 2 STILL AND TO PUHP (HIT THE BLOWN CHARGE DATA 25 TONS 90 MIN 3 TOTAL NUMBER OF CHARGES OF RUX BLOWN TO COATING 20 4 TOTAL COATING PRODUCED 500 TONS 5 TOTAL BLOWING TIME FOR PRODUCTION OF COATING AVERAGE BLOWING TIME PER CHARGE OF RUX BLOWN TO e COATING TOTAL CYCLE TIME REQUIRED TO PRODUCE A CHARGE OF 7 COATING a AVERAGE MELT POINT OF COATING PRODUCED TOTAL NUMBER OF CHARGES OF FLUX BLOWN TO 9 SATURANT 10 TOTAL SATURANT PRODUCED 11 NO.l BLOWING STILL TOTAL BLOWING TIME FOR PRODUCTION OF SATURANT OPERATING DATA FOR APRIL 1979 AVERAGE ROWING TIME PER CHARGE OF FLUX BLOWN TO u SATURANT TOTAL CYCLE TIME REqUIREO TO PRODUCE A CHARGE OF 13 SATURANT 12270 MIN 613.5 MIN 703.5 MIN 240.*F 18 450 TONS 3345 HIN 185.8 HIN 275.8 MIN 1* AVERAGE MELT POINT OF SATURANT PRODUCED 128.7F 15 TOTAL BLOWING TINE FOR NO.l ROWING STILL 15615 MIN TOTAL BLOWING TIME AND PUMPING TIME TO PRODUCE 16 COATING 14070 MIN TOTAL BLOWING TIME ANO PUMPING TIME TO PROOUCE 17 SATURANT 4964 MIN TOTAL BLOWING TINE AND PUMPING TIME FOR NO.l la BLOWING STILL 19034 MIN 19 TOTAL PRODUCTION BY NO.l BLOWING. STILL 950 TONS FRACTION OF TIME NO.l BLOWING STILL WAS IN 20 PRODUCTIVE OPERATION .4406 21 TOTAL NUMBER OF CHARGES OF FLUX BLOWN TO COATING 30 22 TOTAL COATING PRODUCED 23 24 ' 25 NO.2 BLOWING STILL Or CRATING DATA FOR APRIL 1979 TOTAL BLOWING TIME FOR PRODUCTION OF COATING AVERAGE ROWING TIME PER CHARGE OF FLUX BLOWN TO COATING TOTAL CYCLE TINE REQUIRED TO PROOUCE A CHARGE OF COATING 26 AVERAGE KELT! POINT OF COATING PROOUCEO 4-4 750 _ 16385 MIN 546.2 MIN 636.2 MIN 235.9F SOUSCEJJF MIA-- line I x line 3 line S + line 3 tin* 2 + line 6 line I x line 9 line 11 * line 9 line 2 + line 12 line 5 + line 11 line 3 x line 7 line 9 x line 13 line 16 x line 17 line 4 + line 10 line 18 t (30 x 24 x 60) line l x line Z1 line 23 t line 21 1fne 2 + line 24 BIRD 011130 ENCLOSURE (4) SUMMARY OF OPERATING DATA COVERING THE BLOWING STILLS AT THE FRANKLIN ROOFING MILL OURING APRIL 1973 LINE SUB-PARAGRAPH NO. TITLE n ITEM TOTAL NUMBER OF CHARGES OF FLUX BLOWN TO SATURANT 28 TOTAL SATURANT PRODUCED am------------ ------------ SOURCE OF DATA 23 575 TONS line 1 x line 27 29 TOTAL BLOWING TIME FOR PRODUCTION OF SATURANT AVERAGE BLOWING TIME PER CHARGE OF FLUX 8L0WN TO 30 SATURANT TOTAL CYCLE TIME REQUIRED TO PROOUCE A CHARGE OF 31 SATURANT 32 NO.2 BLOWING STILL AVERAGE MELT POINT OF SATURANT PRODUCED OPERATING DATA FOR APRIL 1979 33 TOTAL BLOWING TIME FOR NQ.Z BLOWIHG STILL TOTAL BLOWING TIME AND PUMPING TIME TO PROOUCE 34 COATING TOTAL BLOWING TIME AND PUNPIH6 TIME TO PRODUCE 35 SATURANT TOTAL BLOWING TIME AND PUMPING TIME FOR N0.1 36 SLOWING STILL 4100 MIN 178.3 HIN 263.3 MIN 130.4F 21585 MIN 19086 MIN 6171 MIN 25257 MIN 37 TOTAL PRODUCTION BY NO. 2 BLOWING STILL 1325 TONS FRACTION OF TIME N0.2 BLOWING STILL WAS IN 38 PRODUCTIVE OPERATION .5847 line 29 * line 27 1 Ine 2 + line 30 line 23 + line 29 line 21 x line 25 line 23 x line 31 line 34 + line 35 line 22 + line 28 line 36 (30 x 24 x 60) 39 TOTAL NUMBER OF CHARGES OF FLUX BLOWN TO COATING 26 40 TOTAL COATING PRODUCED 650 TONS 41. TOTAL BLOWING TIHE FOR PRODUCTION OF COATING 14925 MIH AVERAGE BLOWING TIME PER CHARGE OF aUX BLOWN TO 42 COATING 574 MIN TOTAL CYCLE TINE REQUIRED TO PRODUCE A CHARGE OF 43 COATING 664 MIN 44 AVERAGE MELT POINT OF COATING PRODUCED 248.3F 45 NO. 3 BLOWING STILL TOTAL NUMBER OF CHARGES OF FLUX BLOWN TO SATURANT 29 OPERATING DATA FOR APRIL 1979 46 TOTAL SATURANT PRODUCEO 725 TONS 47 TOTAL 8L0WING TIME FOR PRODUCTION OF SATURANT 4895 MIN AVERAGE BLOWING TIME PER CHARGE OF FLUX BLOWN TO 48 SATURANT 168.8 HIN TOTAL CYCLE TIHE REQUIRED TO PROOUCE A CHARGE OF 49 SATURANT 258.8 MIN 50 AVERAGE MELT POINT OF SATURANT PRODUCED 130.8F SI TOTAL BLOWING TIME FOR NO.3 BLOWING STILL 19820 HIN TOTAL BLOWING TIME AND PUMPING TIME TO PROOUCE 52 COATING 17264 MIN 4-5 line 1 x line 39 line 41 + line 39 line 2 + line 42 line 1 x line 45 line 47 line 45 line 2 + line 48 line 41 + line 47 tine 39 x Tine 43 BIRD 011131 ENCLOSURE (4) SUMMARY OF OPERATING DATA COVERING THE BLOWING STILLS AT THE FRANKLIN ROOFING MILL DURING APRIL 1979 LINE SUB-PARAGRAPH NO. TITLE ITEM DATA -SOURCE OF .DATA-- TOTAL BLOWING TIME ANO PUMPING TIME TO PRODUCE S3 SATURANT NO.3 BLOWING TOTAL BLOWING TIME AND PUMPING TIME FOR NO.3 54 STILL BLOWING STILL FOR APRIL 1979 55 TOTAL PRODUCTION BY N0.3 BLOWING STIU. 7505 MIN _ 24769 MIN 1375 TONS line 45 x line 52 + line S3 tine 40 + line 46 FRACTION OF TIME NO.3 BLOWING STILL WAS IN line 54 t 56 PRODUCTIVE OPERATION .5734 _I3Q. x_24.. x_60T_ line 3 v line 21 + 57 TOTAL NUMBER OF CHARGES OF aUX BLOWN TO COATING 76 line 39 line 4 * line 22 + SB TOTAL COATING PRODUCED 1900 TONS line 5 line 23 + 59 TOTAL BLOWING TIME FOR PRODUCTION OF COATING 43580 MIN line 41 AVERAGE BLOWING TIME PER CHARGE OF FLUX BLOWN TO line 59 + 60 COATING 573.4 MIN line 57 TOTAL CYCLE TIME REQUIRED TO PRODUCE A CHARGE OF Tine 2 + 61 COATING 663.4 MIN line 60 62 AVERAGE MELT POINT OF COATING PRODUCEO 241.3F 63 TOTAL NUMBER OF CHARGES OF aUX BLOWN TO SATURANT 70 64 TOTAL SATURANT PRODUCED 65 TOTAL BLOWING TIME FOR PRODUCTION OF SATURANT AVERAGE BLOWING TIME PER CHARGE OF aUX BLOWN TO 66 SATURANT SUMMARY OF 67 OPERATING DATA FOR N0.1t TOTAL CYCLE TIME REQUIRED TO PRODUCE A CHARGE OF SATURANT NO.2 AND NO.3 BLOWING STILLS 68 DURING AVERAGE HELT POINT OF SATURANT PROOUCEO APRIL 1979 TOTAL BLOWING TIME FOR NO.l, N0.2 AND N0.3 69 BLOWING STILLS 1750 TONS 12340 MIH 176.3 MIN 266.3 MIN 130.1F 57020 MIN WEIGHTED AVERAGE VALUE'' line 9 + line 27 line 45 line 10 + line 28 + line 46 line 11 + line 29 + line 47 1fne 65 t line 63 line 2 + line 66 WEIGHTED AVERAGE VALUE line 15 + 1Ine 33 + line 51 TOTAL BLOWING TIME AND PUMPING TIME TO PRODUCE line 57 x 70 COATING 5041B MIN line 61 TOTAL BLOWING TIME AND PUMPING TIME TO PROOUCE line 63 x ( 71 SATURANT 18641 MIN line 67 TOTAL BLOWING TIME AND PUMPING TIME FOR NO.l, N0.2 line 70 + 72 AND NO.3 BLOWING STILLS 69059 MIN line 71 line 19 + TOTAL PRODUCTION BY NO.l, N0.2 ANO N0.3 BLOWING line 37 + 73 STILLS 3650 TONS line 55 FRACTION OF TOTAL BLOWING STILL TIME THAT BLOWING line 72 f 74 STILLS WERE IN PRODUCTIVE OPERATION .5329 (3x30x24x60) AVERAGE TEMPERATURE OF CHARGE IN NO.l BLOWING STILL 75 AT START OF BLOWING 43B.65F AVERAGE TEMPERATURE OF CHARGE IN NO.2 BLOWING STILL 76 AT START OF BLOWING 422.55F AVERAGE TEMPERATURE OF CHARGE IN N0.3 8LQWING STILL 77 AT START OF BLOWING 423.IBF AVERAGE TEMPERATURE OF CHARGE IN BLOWING STILLS AT WEIGHTED 78 START OF BLOWING 426.98F AVERAGE VALUE 4-6 BIRD 011132 ENCLOSURE (5) CALCULATED REDUCTION IN COST OF ASPHALT THAT COULD HAVE BEEN REALIZED AT THE FRANKLIN ROOFING KILL DURING SEPTEMBER 1979 IF TWO (2) BLOWING STILLS HAD BEEN OEDICATED TO BLOWING COATING WITH THE THIRD BLOWING STILL DEDICATED TO BLOWING SATURANT AND AN AVERAGE OF ONE (1) LOAD OF COATING HAD BEEN PURCHASED PER OPERATING DAY LINE NO. SUB-PARAGRAPH TITLE 1 2 3 GENERAL PRICE 4 DATA FOR ASPHALT IH THE FRANKLIN AREA 5 DURING SEPTEMBER OCTOBER 1979 6 ITEM DATA INVOICE PRICE OF RAH FLUX SUPPLIED BY BOSWELL OIL COHPANY IN LATE SEPT 1979 $89.50/TON INVOICE PRICE OF SHINGLE SATURANT SUPPLIED BY TRIMULL ASPHALT CO.(8ROOKVILLE, IND.) SEPT 1979 QUOTED PRICE FOR COATING ASPHALT IN MID-OCTOBER 1979 F.O.B. BROOKVILLE, INDIANA $122.50/TON SI37.50/TON COST OF RAH FLUX RECEIVED IN SEPT 1979 (INCLUDING TRANSPORTATION CHARGES) COST OF SHINGLE SATURANT RECEIVED DURING SEPT 1979 (INCLUDING TRANSPORTATION CHARGES) S94.31/TON S131.80/TON TRANSPORTATION CHARGES PER TON OF RAW FLUX S4.81/T0M 7 TRANSPORTATION CHARGES PER TON OF SHINGLE SATURANT S9.30/T0N ESTIMATED TRANSPORTATION CHARGES PER TON OF 8 COATING ASPHALT SS.30/TDM ESTIKATEO DELIVERED COST PER TON OF COATING 9 ASPHALT $146.80/T0N SOURCE OF DATA FF FF FF 12 OCT 1979 AP0-550-30 DATED 2 OCT 1979 PAGE 543 APD-550-30 DATED 2 0CT1979 PAGE 518 tine 4-line) line 5-line 2 SAME AS LINE 7 ENTRY line 3 +line 8 10 INVENTORY OF RAH FLUX AT START OF SEPTEMBER 1979 INVENTORY OF SHINGLE SATURANT AT START OF 11 ASPHALT SEPTEMBER 1979 INVENTORY DATA 12 AT START AND END OF INVENTORY OF COATING AT START OF SEPTEMBER 1979 SEPTEMBER 1979 13 FOR THE FRANKLIN INVENTORY OF RAH FLUX AT ENO OF SEPTEMBER 1979 ROOFING MILL INVENTORY OF SHINGLE SATURANT AT END OP 14 SEPTEMBER 1979 15 INVENTORY OF COATING AT END OF SEPTEMBER 1979 TOTAL SHINGLE SATURANT RECEIVED DURING 16 SEPTEMBER 1979 1032.11 TONS 114.24 TONS 46.2 TONS 549.78 TONS 143.64 TONS 84.00 TONS 2)74.16 TONS FROM FF VIA TELEPHONE ON 11 OCT 1979 FF 17 TOTAL RAH RUX RECEIVED DURING SEPTEMBER 1979 2215.01 TONS FF line lot line 17- 13 TOTAL RAH FLUX EXPENDED DURING SEPTEMBER 1979 2697.34 TONS line 13 TOTAL NUMBER OF STILLS OF COATING BLOWN DURING 19 SEPTEMBER 1979 110 FF CALCULATED zo TOTAL SHIHGLE TOTAL NUMBER OF STILLS OF SATURANT BLOWN OURING SEPTEMBER 1979 3 FF SATURANT AND COATING ASPHALT TOTAL NUM8ER OF STILLS BLOWN DURING 21 CONSUMED BY THE SEPTEMBER 1979 113 Hne19 + 1ine20 FRANKLIN ROOFING MILL DURING 22 SEPTEMBER 1979 AVERAGE WEIGHT OF FLUX CHARGED INTO STILLS FOR BLOWING 23.87 TONS/BTCH line 18* line 21 TOTAL RAW RUX EXPENDED IN PRODUCTION OF COATING 23 DURING SEPTEMBER 1979 2625.7 TONS line 19 x line22 TOTAL RAW RUX EXPENDED IN PRODUCTION OF SATURANT 24 DURING SEPTEMBER 1979 71.64 TONS line 18-line 23 TOTAL SHINGLE SATURANT COHSUHED DURING linell +11ne 16+ 25 SEPTEMBER 1979 2216.40 TONS Hne24 - line 14 line 12 +line 23- 26 TOTAL COATING CONSUMEO DURING SEPTEMBER 1979 2587.9 TONS line 15 5-7 ENCLOSURE (5) CALCULATED REDUCTION IN COST OF ASPHALT THAT COULD HAVE BEEN REAUZEO AT THE FRANKLIN ROOFING HILL DURING SEPTEMBER 1979 IF TWO (2) BLOWING STILLS HAD BEEN DEDICATED TO BLOWING COATING WITH THE THIRD BLOWING STILL DEDICATED TO BLOWING SATURANT ANO AN AVERAGE OF ONE (1) LOAD OF COATING HAD BEEN PURCHASED PER OPERATING DAY LINE SUB-PARAGRAPH NO. TITLE 27 28 29 30 31 ITEM TOTAL PRODUCTION BY SHINGLE MACHINE (FFPH-10) DURING SEPTEMBER 1979 TOTAL PRODUCTION BY ROLL MACHINE (FFPM-11) DURING SEPTEH8ER 1979 TOTAL PRODUCTION BY FRANKLIN ROOFING MILL DURING SEPTEMBER 1979 TOTAL OPERATING TIME BY SHINGLE MACHINE (FFPM-10) DURING SEPTEMBER 1979 TOTAL OPERATING TIME BY ROLL MACHINE (FFPM-11) DURING SEPTENBER 1979 DATA 8965 TONS 1608 TONS 10573 TONS 398.5 HRS 337.5 HRS SOURCE OF DATA BMGA BMGA line 27 +line 28 FF FF 32 CALCULATION OF TOTAL ASPHALT CONSUMED OURING SEPTEMBER 1979 ESTIMATED HOURLY 4B04.3 TONS line 25 +line 26 CONSUMPTION SHINGLE MACHINE PRODUCTION AS A FRACTION OF TOTAL 33 RATES OF COATIHG ROOFING MILL PRODUCTION ASPHALT ANO .8479 line 27 +line 29 SATURANT ASPHALT ESTIMATED ASPHALT CONSUMED BY SHINGLE MACHINE 34 DURING HOURS DURING SEPTENBER 1979 WHEN FFPM-10 4073.6 TONS 11ne32xl1ne33 AND FFPM-11 35 WERE BOTH IN OPERATION ESTIMATED ASPHALT CONSUMED BY ROLL MACHINE OURING SEPTEFBER 1979 730.7 TONS line 32-line 34 DURING 36 SEPTEMBER 1979 AVERAGE ASPHALT CONSUMPTION RATE BY SHINGLE HACHINE 10.22 TONS/HR line 32 +line 30 37 AVERAGE ASPHALT CONSUMPTION RATE BY ROLL WCHINE 2.IT TONS/HR line 35+ line 31 AVERAGE ASPHALT CONSUMPTION RATE WITH BOTH MACHINES 38 IN OPERATION 12.39 TONS/HR line 36 +line 37 COATING ASPHALT AS A FRACTION OF TOTAL ASPHALT 39 CONSUMEO .5387 I1ne26 + 11ne32 AVERAGE COATING ASPHALT CONSUMPTION RATE WHEN 40 BOTH MACHINES ARE IN OPERATION 6.67 TONS/HR AVERAGE SATURANT ASPHALT CONSUMPTION RATE WHEN BOTH 41 MACHINES ARE IN OPERATION 5.72 TONS/HR AVERAGE BLOWING STILL TIME REQUIRED TO BLOW A CHARGE ?IMEL?JSpI?LS19^NT ' INCLUD" PUHP-IN AND PUMP-OUT 42 266.3 MIN AVEWiSrMwlNfi'sTTLL fIME REQUIRED To BLOW A CHARGE OF FLUX TO COATING - INCLUDING PUHP-IN AND PUMP-OUT 43 TIME (APRIL 19791 663.4 MIN 44 TOTAL STILLS BLOWN TO COATING DURING APRIL 1979 OF COATING AND 45 SATURANT AT TOTAL STILLS BLOWN TO SATURANT DURING APRIL 1979 THE FRANKLIN ROOFING MILL 46 DURING TOTAL COATING PRODUCED DURING APRIL T979 APRIL 1979 47 TOTAL SATURANT PRODUCED DURING APRIL 1979 TOTAL COATIHG AND SATURANT BLOWN DURING APRIL' 48 1979 TOTAL COATING AND SATURANT BLOWN DURING 49 SEPTEMBER 1979 76 70 IBT4.I2 TONS 1670.90 TONS 3485.02 TONS 2697.31 TONS line 38 x line 39 line38 - line40 ANALYSIS OF THE DAILY OXIDATION REPORTS FOR FRANKLIN DURING APRIL 1979 FF - DAILY OXIDATION REPORTS FF - DAILY OXIDATION REPORTS Tine22 x line44 line 22 x line45 11ne46 + 11ne47 line 21 xline22 PRICE DIFFERENTIAL BETWEEN SHINGLE SATURANT ANO 50 RAW FLUX DURING SEPTEMBER 1979 $37.49/TON line 5 - line 4 CALCULATED REDUCTION IN PRICE DIFFERENTIAL BETWEEN COATING ANO RAM FLUX 51 COST OF ASPHALT OURING MID-OCTOBER 1979 $52.49/TON line 9 - line 4 PURCHASED AT FRANKLIN THAT INCREASE IN COST OF SHINGLE SATURANT OVER COST OF 52 COULD HAVE BEEN RAW FLUX FOR SEPTENBER 1979 $81509*26 line 16 x line 50 REALIZED DURING J8SM5Ll)SR?TM^fT9^ mgfVSS ffr Col.15 of 53 SEPTEMBER 1979 TF THE Rl OWING SATURANT HAD BEEN PURCHASED _21________________ Enclosure (6) STILLS WERE MtifflMKm WhM MSH 54 OPERATED IN HAD BEEN PURCHASED 501.27 TONS 11ne22xl1ne53 THE SCHEDULE 55 SET FORTH IN ANO (7) 56 TOTAL INCREASE IN COSTS INCURRED BY PURCHASING COATING IN LIEU OF RAW FLUX OURING SEPTEMBER 1979 TdTAL DECREASE IN COST OF ASPHALT tHAT COULO HAVE BEEN REALIZED DURING SEPTEMBER 1979 IF COATING ANO NOT SATURANT HAD BEEN PURCHASED $26311.66 $55197.60 line 51 x line 54 line 52-line 55 5-8 Pm rt HWa CM <3/5> co si s DATE DAY OF WEEK OH * 3 Vi tn Oi zH ozm dit *-- CALCULATION OF DAILY PURCHASES OF M ATIN S ASPHALT THAT WOULD HAVE BEEN REQUIRED AT THE FRANKLIN ROOFINS AND FELT M ILL DURING SEPTEMBER 1979 IF TWO ( 2 ) BLOWING STILLS HAD BEEN DEDICATED TO BLOWING FLUX TO COATING AND THE THIRD BLOWING S T ILL HAD BEEN DEDICATED TO BLOWING FLUX TO SATURANT Ui sc 5a fl TOTAL ASPHALT CONSUMED C o l.3x10.22 TONS 2 - S25m OH ROLL MACHINE (FFPM-11) TOTAL ASPHALT CONSUMED C o l.4 + C ol. 6 TONS COATING ASPHALT SATURANT ASPHALT a* ss 2ii UJ HOOH UQ tUcns-.i Z9o_J z<a tOH-- O>"- TOTAL CONSUMED [c o l.7 x .S 3 B 7 ; TONS ^ Col HCO mCM * as T0T.BL0WIN6 TOTAL S TILL TIME CONSUMED C o l. 9x11.056 C o l.7 -C o l.8 HRS TONS d_i ~ x . -< . 5 3 TOT. GLOWING TOTAL LOADS TOT. CHARGES TOTAL STILL TIME OF COATING OF COATING COATING REQUIRED TO BE TO BE BLOWN PURCHASED C o l.10 + C o l.13 PURCHASED IN 2 STILLS C o l.15 X 23.87 HRS TONS i______________ =W UI AO U> M" pi CM - a cn 00 CO CM to to X - 3 5 u_ CO to X H CM CO u> CO r*. CO 03 o 6-9 3 zH U. CCJ cn xt IT to tn to z r>* W M- xT to to ui cn U) 40 CO cp--O CO <o CO fO Cr"O <73 Ol 163.S2 163.52 163.52 1 1 1 CCMO 163.52 1 0033 199.29 | M3 to co CO H03 0P3- 0o3 Cor-O* | s CcMr NCMT 3 CcnD <cno C0O3 CpM*. CPMS CO ro I 198.24 1 1 34.72 1 1 106.79 | 1 106.79 1 1 34.72 ] 1 163.52 | ____ 3 4 .7 2 1 34.72 ] [ 1 Cr*M co 34,72 ! 1 3 4 .7 2 i1 x <CMo CxCOMt CCOM o oq 1 234.01 i1 1 234.01 !1 126.06 126.06 126.06 1 1 | g CcMo 126.06 1 P*. 6 0CO3 PXT 0p3o C0O0 CO tn M CO cn 5? Si at tHn om-i nd- CM $ ori CO 1 49.42 1 3 CM *T CO r UM>" to W CMr CMMr tO cO oo s aa N H. CO to [ 3.83 | 66.42 | CCOO 1 1 7 .0 0 1I 6 6 .4 2 1 I 1 4 .0 3 11 5 4 .8 3 1 cMo C0O3 a 1 58.38 1 1 0 7 .9 5 i1 4 .5 2 8 00 at 1 58.38 107.95 1 1 58.38 1 107.95 1 58.38 1 107.95 CUM> 1 20.06 1 I 20.06 1 78.44 1 20.06 1 1 20.06 1 78.44 1 1 20.06 | 6 J ]` 6 l xt xf Kf tf as 5 lC*Ov CtnM CinM CtnM oCoM 0CM0 CCMD 0CM5 aC5M o CO cn o CO 03 03 at CM CM CM W to tn tn tn 03 03 03 p- M* *T 03 0033 03 PCOs PGhO. rC*O> tCoO mOl 3 UOIl t0n3 p03i xt CCOM 5 CCOM cCoM otn en tn r U> ui ui tn tn tn in oi 03 oi 1 199.29 1 1 18.0 1 183.96 1 1 19.5 1 199.29 1 (0733 <0733 0CM3 <71 CM <o tn to ca CO us us Xt C*3 H CHM p* tCoM r" to US xr ca *r eCMn CM CtnM XCOT 1 34.72 a Ii.jS ,i 1 126.06 O CM Cr-M. i XT tn 1 234.01 1 1 1 9 9 .2 9 11 107.36 1 CM as com s s SL-6 1 oro CCOM 3? a s Wtn a a Ps o 03 CinM tCoM CM* xt * 1 70.23 1 58.38 1 13.05 1 5 1 . 0 8 ! 1 20.06 1 78.44 1 r>. a at to r> h* oo s S "ef CO o *Gv ____ 4 J 2 ____ 1 20.06 ** tn a a d s 03 q H 5 CPMH S CdM fc*o a XT tn co to co ccsn. ton dcn dcn g 8 s CM s CM a aca XT CcMn CcMn CPM*. oi CM XT XT tn in tn tn in tn O at 03 03 03 03 30 Ol CM CM tn 1 19.5 1 199.29 | 1 19.5 1 199.29 1 1 79.5 1 199.29 1 1 19.5 1 199.29 1 0033 1 42.32 I 1 42.32 ! r1 42.32 to to 1 241.61 | 1 241.61 I 130.16 | 130.16 1 in ui ui ui in r 5 cn XT tn T tn to ui tCoM CtoM oCO dto 1 111.45 1 111.45 ! 4 .6 7 to 1 20.72 11 2 0 .7 2 1 80.98 1 a d co CtoM a | 60.26 1 111.45 1 60.26 | 1 4 9 .4 2 j1 9 1 .4 5 tXnt tn rr--~ 1 L S \' * 1 20.72 20.72 1 80.98 1 80.98 i 80.98 ____US .4 2 1 1 1 1 CO s in O cn to cn to xT co COMl | 398.5 I 4072.67 | 337.5 | 732.40 aP* 108.41 |1 1198.64 11 2 2 1 6 .5 7 1 o - CM o ** CM - CM - - - - CM - o r- o - o xf XT XT Xf xf r M H 3* T C < -a C p CM M- or Pn. CM T CCOM CCOM p- tCoM CO ca r-r I 23.87 1 1 23.87 1 1 23.87 1 23.87 1 23.87 1 47.74 23.87 23.87 23.87 lB H a s 03 z H G CM u. CM UI CM CM <A tn CM z *T CM ENCLOSURE (6) Px s ' pct H tn to CM CM ae z H U- N CO CM CM in tn 03 CM o m 1 S CM CCOO o s CGM CM NT BIRD 011135 BIRD 011136 ENCLOSURE (8) 8-11 BIRD 011137 ENCLOSURE (9) RECOMMENDED SCHEDULE FOR DEPLOYMENT OF BLOWING STILLS AT FRANKLIN DURING WEEKS WHEN BOTH FFPM-10 AND FFPM-11 ARE IN A TWO-SHIFT OPERATING CONFIGURATION FROM MONDAY THROUGH FRIDAY LINE NO. DAY OF WEEK NO.l NO. 2 NO.3 RESERVE BLOWING STILL BLOWING STILL BLOWING STILL SATURANT TOTAL STORAGE TANK NUMBER OF NO. OF NO. OF NO. OF NO. OF NO. OF 10. OF CHARGES NO. OF NO. OF CHARGES CHARGES CHARGES CHARGES CHARGES CHARGES BLOWN CHARGES CHARGES BLOWN BLOWN BLOWN BLOWN BLOWN 3L0WN TRANS WITH TO TO TO TO TO ro FERRED DRAWN COATING SA7URANT COATING SATURANT COATING SATURANT INTO FROM STORAGE STORAGE 12 3 4 5 6 7 8 9 10 11 1 SUN 2 MAI NT ENANCE STATUS MAINTE NANCE STA"rus 2 2 MON 2 2 1 27 3 3 TUES 2 2 1 27 3 4 WED 2 2 1 27 3 5 THUR 2 2 1 27 3 6 FRI 2 2 59 7 SAT 4 4 4 12 12 8 TOTAL 12 4 10 4 9-12 4 17 51 12 12 BIRD 011138 SCM Names 1st Full-Time Energy Chief B> JOUE SOLOMON NEW YORK-SCM Corp.'s ap pointment last month at a full time corporate energy manager reflects a preference tor energy reduction over energy data, ac cording to that firm's new man ager. Thomas J. Walsh. "You don't want data, you want to reduce usage." said Walsh. Walsh. who was energy, environmental coordi nator for one of SCM's seven produce divisions, Ourlcee Foods, until he moved into his new role, is now in charge of energy con servation for all seven. He re ports to Edward Romay, SCM vice president, and will stay in the Cleveland office, close to sev eral SCM divisons. though com pany headquarters are in New York City. SCM has concentrated on data cullccuon since the company be came sensitive to energy con- Se .SOT, Page 6 31*1 S'**2 5S is o 0 Illllfli S 3 cV > 9 d XnX 3 fi *8 &> 0 2^ ,, 3r 3 l* i^sssfli O* JS 4IS/ ,VI & 5': 5Sc % t JK K C " = 2CCaXI_f U4S12-5>g.* C>v - > llflF a H 5 c i1iftol BE 2 -S >.T3 < !"**ig*w3to ifi*s SI S.a8-S| Jg* ifrl. ISr' saJH p ! 3 3 ft *t . ` -- uJ. o * -q *- ii 01 tl JSIh":i.l2&C l= S^SgSEj l.?|I e Siai g BIRD 011139 ENERGY USER NEWS. MONDAY. AUGUST IT. 1I7 11 BIRD 011140 MEMORANDUM Appendix 4 To From D*t* Subject G. L. Dusty - BE J. P. Hratko - BE 29 October 1979 ENERGY MANAGEMENT AT BIRD & SON, inc. Reference (a) J. P. Hratko memorandum to G. L. Dusty, dated 19 October 1979, Subject: BIRD & SON, inc. ENERGY MANAGEMENT PROGRAM (b) J. P. Hratko memorandum to G. L. Dusty, dated 24 October 1979, Subject: ENERGY SURVEY - SHREVEPORT 1. PREFACE. The purpose of this memorandum is to expand on the brief commentary outlined in reference (a), a copy of which is attached as Enclosure (1). This memorandum will cover the following subjects in the paragraphs that follow: ` An estimate of the energy supply situation during the 198Q's. ` The national response to the energy situation In areas most directly impacting on Bird & Son, inc. operations. ` The response of Bird & Son, inc. to the energy situation. * The rationale in support of a positive response by Bird & Son, inc. to the energy situation. ` The essential elements of a Bird & Son, inc. energy management proqram for the 1980*s. The dimensions of the long-term energy problem are now in sharper focus than in late 1974 when the Bird A Son, inc. energy management program was instituted in the aftermath of the 1973-1974 Arab oil embargo. In the intervening years, the emphasis and direction of the program have changed in response to the unfolding of events. There is today a better understanding of the many barriers that must be overcome if the effort to solve the energy problem is to be successful. There is a need to redefine the Bird & Son, inc. energy management program. The thrust of this memorandum is the proposal that energy,,matters, which obviously have a significant impact on the financial success of a highly energyintensive company such as Bird & Son, inc., be accorded a higher level of priority within the Company, consequently warranting a higher degree of attention on the part of top corporate management. 1 BIRD 011141 ENERGY MANAGEMENT AT BIRD & SON, inc. 29 October 1979 oc - Energy matters, important as they may be to the financial success of Bird & Son, inc., will not receive the requisite level of attention on the part of division management if the energy management program is perceived as something sponsored solely by a single individual holding a subordinate position on the corporate headquarters staff. Division management looks to top corporate management for guidance in establishing its priorities on energy as on other matters. In energy matters we have a choice between drift or mastery. An argument can be made in favor of either course of action. The most compelling argument favors seeking mastery. If this course is to be chosen, then: ' Appropriate changes should be made in operating procedures. ' This decision should be communicated to division management. * We should proceed onward. 2. AN ESTIMATE OF THE ENERGY SUPPLY SITUATION DURING THE 1980's. The energy problem will not go away! The era of low-cost energy is a thing "of the post. There is no risk that capital expenditures designed to reduce the cost of energy will be nullified at some time in the future by a return to low energy prices. The price of all forms of energy will continue escalating during the 1980`s at a rate far exceeding the inflation rate. Thus, there is nothing to be gained by delaying capital investment in projects designed to reduce the cost of energy but much to lose. Huge increases in the prices of energy since 1973 have not had the anticipated effect of arresting the continuing decline in hydrocarbon reserves within the United States. The OPEC countries would be justified in viewing oil in the ground as a better investment than dollars invested in foreign countries. It is highly unlikely that the major OPEC nations will increase production levels solely to accommodate the requirements of oil-importing nations. In fact, the action in the spot market during 1979 has provided OPEC with the valuable intelligence that, in crude oil production, the beer advertising slogan "less-is-more", is applicable. Revenues can be dramatically increased by simply curtailing production. Ample evidence has been supplied to indicate that any claimed "right" of OPEC nations to refuse to increase production from current levels will not be effectively challenged. Formulating an effective challenge would be an extremely difficult task due to the large number of nations in OPEC and the diversity of interests of the oil-importing nations. Nevertheless, if a challem: were indeed mounted, the outcome would be most uncertain. - Working against the possibility of mounting a challenge against OPEC is the fact that there are many organizations in the United States and many non-OPEC countries who reap significant benefits from OPEC pricing actions. In brief, there will be no quick fix to the energy problem. BIRD 011142 29 October 1979 ENERGY MANAGEMENT AT BIRD & SON, Inc. -3- The political climate in many third-world nations is such that capital is not likely to be invested in exploration and development inasmuch as the risk of expropriation is great far those few ventures that do prove 'ucr'''-'.f'1 Crude oil production in the United States peaked in 1970 at 9,636,000 barrels per day and declined to approximately 8,641,000 barrels per day during 1979, this despite the large volume of crude oil coming on stream from the Alaskan North Slope since 1970. Natural gas production in the United States peaked at 22.61 trillion cubic feet in 1973. Reserves of both domestic crude oil and natural gas have continued to decline. The substantial increases in prices allowed domestic producers since 1973 have failed to arrest the downward trends in both production and reserves. Granted, domestic producers have not been allowed world prices for their products, nevertheless, they have enjoyed very substantial increases in prices computed in constant dollars over the prices in effect prior to the 1973-1974 Arab oil embargo. The low prices prior to 1973-1974 were apparently sufficient to command ever-increasing rates of production. With the substantially higher prices now in effect, both production and reserves continue to decline. Since production levels continued to rise when prices were low and continue to fall when prices are high, it can be concluded that an underlying factor more fundamental than price is determining the production levels of conventional crude oil and natural gas. There is no shortage of reasons to explain this anomaly. My study of report covering oil exploration within the United States, coupled with the observation that exploration efforts are being made in some of the most inhospitable environments imaginable, leads me to conclude that the non-responsiveness of reserve-additions to price signals is due to the fact that there are, at best, only a very limited number of large fields waiting to be discovered within the continental United States. Synthetic crude oil will not be produced in volumes sufficient to have an impact on the energy supply situation during the 1980's. The price at which shale oil is deemed competitive with crude oil continues to move ahead of the rapid increases in crude oil prices, much the same as does a never-reached horizon. In the event the Soviet Union, presently the world's largest producer of crude oil, shifts from being a crude oil exporter to a crude oil importer during the latter part of the 1980's - a real possibility - then we will encounter a profound new dimension in the energy situation; a dimension with potentially troublesome implications. The energy situation will continue to be a major problem during the 1980's. The following is a listing of areas on which the energy situation will have an adverse impact; ' Inflation rate Growth rate Unemployment rate BIRD 011143 29 October 1979 ENERGY1 MANAGEMENT AT BIRD & SON, irtc. -4- ' Standard-of-1iving ' National security ' Flexibility of foreign policy initiatives * Balance-of-payments ` Relations with allies The brief outline above is a conservative assessment of the energy situation. 3. THE NATIONAL RESPONSE TO THE ENERGY SITUATION IN AREAS MOST DIRECTLY IMPACTING ON BIRD & SON, inc. OPERATIONS. It has not been possible to get a consensus in the Congress behind legislation which would effectively meet the challenge of overcoming the energy problem. Instead, in the years since the Arab oil embargo of 1973-1974, the energy situation within the United States has progressively deteriorated. Imports of crude oil and refined petroleum products now constitute a larger fraction of total petroleum consumption than at the time of the 1973-1974 embargo, this despite the fact that in the intervening years substantial oil flow has been realized from the Alaskan North Slope. There has been continuous carping and criticism between all parties to this national debate. Perhaps we are realizing the best that can be achieved within the workings of the "democratic process", messy and unsatisfactory as the end result may be. In energy matters, the interval since 1973 could be termed as "the years the locust hath eaten." The National Energy Act was enacted into law on 9 November 1978. following is a listing of the five (5) individual laws constituting the National Energy Act: Title of Law Public Law No. National Energy Conservation Policy Act PL 95-619 Power Plant and Industrial Fuel Use Act of 1978 PL 95-620 Public Utility Regulatory Policies Act of 1978 PL 95-617 Natural Gas Policy Act of 1978 PL 95-621 Energy Tax Act of 1978 PL 95-618 Part of the National Energy Conservation Policy Act establishes an industrial.energy conservation program applicable to large industrial energy users in selected SIC manufacturing areas. Bird & Son, inc. has been identified as one of the corporations required to participate in this program. BIRD 011144 29 October 1979 ENERGY MANAGEMENT AT BIRD & SON, inc. -5- A system mandating the submission of voluminous data covering the progress of each plant location and the corporation as a whole in meeting the conservation goals is presently being developed by the Department of Energy. The Power Plant and Industrial Fuel Use Act of 1978 provides for requiring that new boilers at power plants and industrial major fuel burning installations which exceed a certain designated capacity (as defined in the regulations) be designed for firing with fuels other than petroleum or natural gas as the primar. fuel. The statute also provides authority to require the conversion from petroleum or natural gas to another primary fuel of existing boilers at power plants and industrial major fuel burning installations which exceed designated capacity as defined in the regulations. This legislation has the potential for impacting adversely on the Bird & Son, inc. power plant at East Walpole. The Public Utility Regulatory Policies Act of 1978 has the potential for doing much mischief under the guise of requiring industry to pay its "fair share" of the cost of electricity. It may result in tariffs which effectively conceal from the public the true cost of electricity consumed. The Natural Gas Policy Act of 1978 is commonly viewed as a statute that deregulates natural gas. The immediate effect of this act is that all natural gas, including intrastate natural gas which was not previously regulated, is now subject to Federal regulation. The legislation provides for "complete deregulatio* by 1985, but even under "complete deregulation" some natural gas will continue to be regulated. The Natural Gas Policy Act of 1978 must surely qualify as one of the most incredibly complicated pieces of legislation ever enacted into law. The law itself is simplicity when compared to the voluminous Implementing regulations which have been crafted with most meticulous attention to detail. This act and the associated implementing regulations are truly mind-boggling. The effect of this law on Bird & Son, inc. will be to increase the price of natural gas via the mechanism provided In Title II for imposing incremental pricing surcharges on natural gas consumed by non-exempt industrial users supplied by the interstate system. The law may inadvertently serve to reduce the volume of gas available to industry located in the gas-producing states. The Energy Tax Act of 1978 purports, in part, to offer tax incentives to industry to encourage industry to invest in certain categories of energy property. The energy tax credit is a puny 10% and, as such, is hardly likely to stimulate investment in energy conservation property for the primary purpose of conserving energy. It will be claimed on those projects which would have been executed regardless of the so-called "incentives" in the Energy Tax Act of 1978. BIRD 011145 29 October 1979 ENERGY MANAGEMENT AT BIRD & M)N, inc. -6- 4. THE RESPONSE OF BIRD & SON, inc. TO THE ENERGY SITUATION. It is axiomatic that for a corporate energy management program to be most successful it must enjoy the support of top management; and that support must be effectively communicated to division management. This support has not been provided within Bird & Son, inc. I am aware that there are many factors - almost all of which I am not privy to - that top management must integrate into the decision-making process in order to establish corporate priorities. However, during the past five (5) years energy has not even been accorded the status of one of the many factors that is evaluated in the decision-making process. At least I have not perceived so much as a hint of an indication that energy was at any time so considered. Resistance has been encountered in regard to implementing some very costeffective recommendations that could have a significant impact on plant profitability while requiring only a modest capital expenditure, a modest increase in operating skills, and a modest increase in expenditure of effort by supervisory management personnel. There has been encountered what could best be described as a cavalier attitude towards massive and obvious waste of energy in the manufacturino process. The attitude displayed is that as long as the mill is profitable it need not concern itself with energy waste. The first encounter with such.a negative attitude towards energy is baffling. However, further analysis of all the relevant circumstances allows this attitude to be viewed from a different perspective. Division management does not consider mild rhetoric to the contrary notwithstanding - that it shares any responsibility for contributing to the solution of the nation's energy problem, but, rather, that its responsibilities are discharged by producing the top quality products demanded by the market and by earning a favorable return on invested capital in doing so. It would be uncharitable not to accord some sympathy toward this attitude when it is realized that the payroll is met, not with funds saved on energy consumption, but with revenues realized through product sales. The position implicit in this attitude is that the solution to the energy problem is in the direction of increasing supply and,therefore, the responsibility rests elsewhere. To the novice in energy management it would appear that the high prices of energy, coupled with the rapid escalation in energy prices in the future, would yield a very high return on investment for many energy projects. Therefore, it would appear that all that is required is that such projects be identified to division management, and once brought to the attention of division management, the energy projects will sell themselves. But this is not so. Funds to purchase energy are easy to get and can be expensed. The competitior. is exposed to the same high energy prices, thus, energy costs are not considered as adversely impacting on the competitive position of the mill in its geographi.. location. It is assumed that the higher costs so incurred will be recovered through higher prices. All is well if this is how the scenario unfolds. BIRD 011146 29 October 1979 ENERGY MANAGuMENT AT DIKIJ & bON, inc. -7- Funds for projects designed to reduce the future cost of energy must compete with other projects in the capital budgeting process, and after being expended, must be depreciated. Energy projects suffer in the competition for capital funds - assuming such projects are even entered into the competition for the very reason that they are amenable to a detailed calculation of return on investment. These projects receive short shrift in "competing" with projects not burdened with a detailed return on investment calculation, but briefly justified on the basis that the project will: ' Increase production. * Permit production of a new product. ' Protect against the possibility of unschedule downtime. ' Promote safety. ' Satisfy the requirements of law enforcement agencies. It is understandable that many vital projects can be processed through the budgeting system without benefit of a detailed return on investment calculation. The justification for such projects can be intuitively felt. However, this cannot explain the almost automatic rejection syndrome encountered by energy projects with highly favorable return on investment rates. It is my opinion, based on observation, that significant capital expenditures are made on projects that could only have been justified on the basis that an Increase in productive capacity would be realized thereby, but that in reality have an impact on productive capability that is only tenuous at best. Energy projects are rejected in favor of obviously non-productive projects that can only be justified on the basis that they are considered as providing convenience or comfort for personnel. Energy projects suffer from a feminine image associated with a narrow perception of energy projects as limited for "energy conservation". Conservation projects an image of scarcity, wanting and weakness. This makes it difficult, if not impossible, for energy projects to compete with the masculine image projected by almost any project, of whatever intrinsic worth, that ostensibly promises to increase productive capabilities. A cavalier attitude towards energy effectively dismisses a vital area of management responsibility; an area that could very well be most demanding of management skills. To a great extent, generous applications of energy are often a substitute for modest applications of management skills. It is my cpir.ii,!.. based on five (5) years involvement in this area, that these are valid percept., of one of the most difficult-to-surmount barriers standing in the way of the solution to the energy problem. BIRD 011147 29 October 1979 ENERGY MANAGEMENT AT BIRD & SON, inc. - 8- 5. THE RATIONALE IN SUPPORT OF A POSITIVE RESPONSE BY BIRD & SON, inc. TO THE ENERGY SITUATION. The temptation to expound on the many altruistic reasons for making a positive response to the energy situation can not be resisted. It would be easy to write a long dissertation on the subject. However, a brief commentary will suffice for the present purposes. Unfortunately, the true costs of marginal supplies of energy remain effectively concealed via the mechanism of "rolled-in" pricing. For example, crude oil has recently (fourth week of October 1979) commanded prices as high as $50.00 per barrel on the spot market. This high-priced oil is purchased by a supplier who must have it to supply his customers. However, none of his customers will pay anywhere near $50.00 per barrel for the oil. The cost of thi* high-priced oil merely raises the average unit cost of the supplier's inventO'-y which, in turn, is passed on to all purchasers via slightly higher prices. Hovvo.1 r. a price signal has been given to OPEC as to what the market will bear and as to how desperately willing oil-importing countries are to pay just about any imaginable price for petroleum. It is only a matter of months before contract prices for crude oil move towards the heights previously commanded by spot prices which, in the meantime, have moved on to even greater heights. The energy situation has an adverse impact on the nation's: (1) inflation rate, (2) growth rate, (3) unemployment rate, (4) standard-of-livlng, (5) balance of payments, and (6) national security. The cost to the nation's economy imposed by all these factors is huge. If these costs were allocated to the marginal supplies of energy demanded - demanded because the nation refuses to conserve - then the true cost per barrel for the last 2,000,(too to 3,000,000 barrels per day that could be eliminated from imports via conservation is not the $23.50 per barrel recent contract price, but more likely in excess of $100.00 per barrel. Everyone "deplores" this situation; righteous rhetoric fills the air, blame-laying is in season, scapegoats are sought, some profit handsomely, while the rest hope that everyone else will take the necessary action to rectify the situation. Eventually, something will be done, and the instrument of action may be the heavy hand of the Federal government intruding ever further into the affairs of individual citizens and industry. Bird & Son, inc. can justify a positive response to the energy situation on the basis of direct corporate self-interest. Energy projects designed to reduce the cost of energy offer one of the very best investment opportunites available to industry. In many cases these projects involve nothing more than the straight-forward application of long-established technology. The projects presented have a high rate of return on investment, even when calculated on the conservative (but unrealistic) assumption that energy prices will remain constant over the entire asset depreciation period of the project. But energy prices will not remain constant, nor will the increase in energy prices merely parallel the general background inflation rate. BIRD 011148 29 October 1979 ENERGY MANAGEMENT AT BIRD & SON, Inc. -9- The fact that energy prices during the 1980*5 will rapidly escalate at rates far in excess of the background inflation rate can be taken as one of the fixed beacons for charting a course through the energy problem during the l9S0's. Energy prices will even escalate at a higher r^te than the inflation in cost of capital projects designed to reduce the cost of energy. In general, these points are stipulated, thus, it is not considered necessary to develop even a brief dissertation in support of the statement underlined above. For this reason, the actual return on investment rate will be far higher than the already high, but significantly understated, return on investment rate using conservative accounting procedures. As an example. Central Engineering is in the latter stages of a study project covering a proposal to install a roofing mill waste incinerator with heat recover,, in the form of steam generated to meet all the requirements of the Norwood Roofing Mill. The installed cost of the complete system was calculated to be approximately $2,540,000 as of April 1979. This installation would permit an annual reduction in consumption of No.6 fuel oil at Norwood of approximately 1,200,000 gallons. The price of No.6 fuel oil at Norwood has increased from $.341466 per gallon during December 1978 to $.551067 per gallon during September 1979. The price of No.6 fuel oil at Norwood has increased at an annual rate of approximately 82". It can be anticipated that the cost of No.6 fuel oil at Norwood during the latter ) part of the 1980's will be in the neighborhood of $2.00 per gallon. Thus, this ` installation could yield a reduction in cost of energy in excess of $2,400,000 per year during the latter part of the 1980's - or perhaps sooner. It may be held that the huge increase in the price of No.6 fuel oil during 1979 was unusual and that crude oil prices will stabilize in the future. This is wishful thinking, and a prudent energy management program would not accord any merit to such a contention. The vulnerability to interruptions in production resulting from curtailments or reduced allocations of conventional fuels (natural gas and petroleum) would be eliminated if Bird & Son, inc. plants had the capability to burn other fuels such as coal, roofing mill waste, or self-produced synthetic gas manufactured on the premises from coal. The continued increase in the prices of refined petroleum products means that the absolute value of the spread between the price of No.2 fuel oil and No.6 fuel oil will double with every doubling of fuel prices. This being the case, the magnitude of the annual reduction in cost of fuel that can be realized by shifting from No.2/No.4 fuel oil to No.6 fuel oil will continue to increase as fuel prices increase. It should be noted that shifting from No.2/No.4 fuel oil to No.6 fuel oil at current fuel oil prices requires a capital investment that yields a very substantial reduction in costs and at a payout time measured in a few months rather than several years. BIRD 011149 29 October 1979 ENERGY MANAGEMENT AT BIRO & SON, l'nc. - 10 - 6. THE ESSENTIAL ELEMENTS OF A BIRD & SON, inc. ENERGY MANAGEMENT PROGRAM FOR THE i9601s : a. Plant Energy Surveys> The program in effect since October 1974 of having one or two mills simultaneously the subject of a comprehensive energy survey should be continued. The surveys consist of on-site work, with data analysis and report preparation completed at East Walpole b. Conversion From No.2/No,4 Fuel Oil to No.6 Fuel Oil. All apparatus that has a firebox configuration and tube spacing that permits burning No.6 fuel oil should be converted to No.6 fuel oil without delay. It is an absolute absurdity for large industrial fuel burning apparatus, such as that operated by Bird & Son, inc., to continue to pay the substantially higher prices commanded by premium fuels such as No.2/No.4 fuel oil and diesel fuel. These premium fuels should be burned in home heating units or in precision built diesel engines. Burning premium fuels in industrial apparatus capable of burning No.6 fuel oil is a luxury that can no longer be afforded. This practice should no longer be tolerated. The Federal Energy Regulatory Commission received comments in rulemaking proceedings carried out in Docket No. RM 79-21 covering the three-tier approach for incremental pricing of natural gas. The state of Louisiana commented to the Commission that in Louisiana large industrial boilers equipped to burn No.6 fuel oil outnumber by more than three to one boilers that are equipped to burn No.2 fuel oil (FR Vol.44, No.195, Friday, 5 October 1979, page 57756, right hand column). The boilers at Shreveport are large industrial boilers. The example of the large majority of operators of industrial boilers in Louisiana is further evidence of the merit of the recommendation to shift to No.6 fuel oil at Shreveport. The Shreveport Roofing and Felt Mill consumed approximately one-half of one percent of all the industrial distillate fuel consumed in the states of Arkansas, Louisiana, Mississippi, New Mexico and Texas during 1977. The 1979 level of fuel oil consumption at Shreveport is very close to that of 1977. This would make Bird A Son, inc. one of the largest industrial users of distillate fuel oil in Louisiana. It is conservatively estimated that a reduction in the cost of boiler fuel oil of* approximately $400,000 per year could be realized at Shreveport simply by making a modest capital investment of approximately $160,000 to permit No.6 fuel oil to be burned. Most of the distillate fuel oil consumed by Bird & Son, inc. is burned at Shreveport. This is the reason that emphasis has been placed on the great cost reduction opportunity at Shreveport that can be realized by shifting from No.2/No.4 fuel oil to No.6 fuel oil. Additional information regarding this matter at Shreveport is outlined in reference (b), a copy of which is attached as Enclosure (2). BIRD 011150 29 October 1979 ENERGY MANAGEMENT AT BIRD & SON, inc. - II - ) Conversion to No.6 fuel oil should be implemented at all other locations where the volumes of fuel oil burned warrant the necessary capital investment. Getting off distillate oil as the alternate fuel to natural gas will result in significantly reducing the incremental pricing surcharges that will be imposed when the three-tier incremental pricing system goes into effect on 1 November 1980. There are ample reasons to justify according a high priority to the recommendation to get off distillate oil to the greatest extent possible - and as soon as possible. c. Product Design. The price of asphalt during the 1980's will continue to escalate at the same rate as other petroleum products. This will result in a continuing increase in the magnitude of the cost differential incurred in producing a ton of organic felt-based shingles versus a ton of glass mat-based shingles. This increasing cost differential may erode the competitive position and profitability of the organic feltbased shingle. This comment is offered somewhat tentatively inasmuch as I am not privy to any available data covering the intrinsic merit, or lack thereof, of the glass mat-based shingle. The point of this sub-paragraph is to invite attention to the impact of the energy situation on the relative profitability of these two types of asphalt shingle-on the ) assumption that both types are of equal intrinsic merit and are equally acceptable in the market place. d. Asphalt Management. Asphalt is energy consumed as "feed stock" In the manufacture of roofing products. For this reason, asphalt management :`s considered an element of the Bird & Son, Inc. energy management program. Petroleum-based hydrocarbons consumed as "feed stock" win ho subjected to the same rapid escalation of prices during the 198C's -* hydrocarbons consumed for their energy value. The manufacturing operations of Bird & Son, inc. are highly energyintensive. However, the value-of hydrocarbons consumed as asphalt is more than twice as great as all the fuel and electrical power consumed by Bird & Son, inc. in a]X manufacturing operations. There is a significant potential for cost reduction in more effective management of asphalt resources. A study is presently in progress to determine the economic feasibility of installing asphalt blowing facilities at selected roofing mills. The price differentials between raw flux and refined asphalt products, combined with asphalt consumption levels at the-Pacific Division roofing mills, tentatively indicate that asphalt blowing facilities would be an extremely profitable investment at two or perhaps all of our Pacific Division plants. The technology of blowing asphalt is long-standing and there should be ) no difficulty in introducing this equipment at these plants. There might also be the collateral benefit of exercising more effective quality control of the refined asphalt products going into the manufacturing process. BIRD 011151 29 October 1979 ENERGY MANAGEMENT AT BIRD & SON, inc. - 12 - e. Waste Management 1) Roofing mill dry waste incineration with heat recovery and raw material recycling. As a rough estimate, approximately 100,000 tons of roofing mill dry waste was generated by Bird & Son, inc. roofing mills during 1978. The gross heating value of this waste material is estimated to be approximately 1,400,000 million btus. Assigning a conservative value of $3.00 per million btus yields the result that the presently unrecovered fuel value of the waste now disposed of to landfill is approximately $4,200,000 per year. The value of the granules that can be recovered for recycling as base granules is approximately $950,000 per year. In brief, the total potential value of the resources that could be recovered is in excess of $5,000,000 per year at 1979 prices. It is recognized that recovery of 100% of the waste generated is not likely to be economically feasible. However, installation of a fluid bed roofing mill waste incinerator with heat rnrovn*"/ and raw material recycling capability at each of our largest p1 would permit the recovery of most of the value that is now being disposed of to landfill sites. 2) Burning of condensate oil in lieu of disposal as waste. At some locations condensate oil generated in the asphalt blowing process is collected and sold as waste for a paltry fraction of the fuel value of this material. At other locations the condensate is successfully burned in lieu of fuel oil to supply part of the plant's energy requirements. All condensate oil should be utilized on the premises to displace part of the purchased fuel oil required. f. Coal Capability. The installation of fluid bed combustors for incineration of roofing mill waste as outlined in sub-paragraph 6.e above will provide these locations with a coal burning capability. The rapid increases in the prices of fuel oil and natural gas during the 1980's will work to make the burning of coal in states such as Ohio an . option that will warrant careful consideration. A planning and research effort should be initiated in this area. g. . Industrial Coal Gasification. A planning and research effort should be initiated in order to acquire the necessary background information essential in making a determination of the economic feasibility of installing facilities for the production of medium btu gas from coal feed stock at such locations where all the relevant factors combine to make this option cost-effective. BIRD 011152 29 October 1979 ENERGY MANACil MLNT AT GIRD & SON, inc. - 13 - h. Capital Budgeting. The Energy Manager and Central Engineering Department should be assigned an active role in the capital budgeting process. This role should include participation in the decision-making process leading to the selection of those projects selected for capital funding. This proposal will most likely be held anathema in those quarters in which this decision-making authority is now concentrated. Be that as it may, this proposal merits consideration. The Central Engineering Department is the sole depository within the company of a unique body of in-depth knowledge covering the machinery configuration at each of our manufacturing facilities. The information should be brought to bear in the capital budget decision-making process to improve the probability that of all the capital projects considered, only the most cost-effective are rewarded with funding. It is very possible that information available in the Central Engineering Department could, if it were authorized to enter into the decision-' v process, alter significantly the priorities assigned to some capital projects that otherwise would win funding. Central Engineering participation in the decision-making process should be looked upon as a useful check on the system. In the matter of energy management, it is essential that the Energy Manager be brought into the decision-making process for preparing the capital budget. Energy considerations have far too great an impact on the profitability of operations to be ignored at the time the capital budget is prepared. i. Providing Input to the Law-Making Process. There are situations wherein trade associations cannot come to a consensus on pending legislation due to conflicting interests of the association's constituent members. At other times, the association's position may reflect the views of dominant members. For these and other reasons, trade associations may take no position or a position adverse to the interests of Bird & Son, inc. It is suggested that Bird & Son, inc.. develop a position on a limited number of energy-related issues and that our position be communicated to the appropriate committees of the Congress or the appropriate agency within the Executive Branch. The government will always yield on a particular issue if sufficient pressure is brought to bear. We should do our part in applying this pressure and thereby become more directly involved in shaping the laws and regulations affecting the economy. Our Involvement should not be limited to the merely passive role of determining what laws we must comply with and how such compliance is to be effected. The resources that can be allocated to this task are limitbut an effort should nevertheless be made. We should consider it our dut' to do so. JPH/dv J. P. HRATKO Energy Manager BIRD 011153 29 October 1979 ENERGY MANAGEMENT AT BIRO & SON, inc. - 14 - n Enclosures (1) J. P. Hratko memorandum to G. L. Dusty, dated 19 October 1979, Subject: BIRD & SON, Inc. ENERGY MANAGEMENT PROGRAM (2) J. P. Hratko memorandum to G. L. Dusty, dated 24 October 1979, Subject: ENERGY SURVEY - SHREVEPORT BIRD 011154 MEMORANDUM r.-N X 6. L. Dusty - BE Pro*x J. P. Hratko - BE Dst* 19 October 1979 SmbjK* BIRD & SON, Inc I ENERGY MANAGEMENT PROGRAM enclosure (u 1. SCOPE OF DUTIES: The following is a listing of the primary objectives of the energy management program: a. Cost reduction b. Compliance with rules and regulations c. Data collection d. Keeping current on energy related technology e. Keeping current on the energy situation J More detailed information on the approach taken with regard to each of the above categories is set forth in the paragraphs that follow. 2. COST REDUCTION: The following areas are covered within this category: a. Energy Conservation Comprehensive energy surveys are conducted and detailed reports prepared recommending cost-effective action to be taken to reduce the energy consumed per unit of production. The Energy Manager devotes approximately fourty (40) days of on-site work at each location surveyed. This on-site work provides an opportunity to become familiar with the piping systems and machinery layout at each location. Sketch notes are recorded which are later converted into drawings which serve as useful reference material in the development of the energy survey report. Various tests and measurements are mad during the on-site work periods. The operating configuration of the plant is observed both on operating days and non-operating days. The on site work periods provide a valuable opportunity to be exposed to the expertise at each manufacturing location. The bulk of the work involved in completing an energy survey is conducted at East Walpole. BIRD 011155 BIRD & SON, inc. ENERGY MANAGEMENT PROGRAM 19 October 1979 -2- The energy survey is not limited solely to energy conservation, but rather to reduction in energy consumed per unit of production. Thus, factors that are not directly energy related, but which can have an impact on the specific energy consumption level (BTUS/TON - KWH/TON) are evaluated and considered in the energy survey. b. Reduction in Cost of Energy This part of the cost reduction effort is based on continuous monthly monitoring of fuel prices and consumption at each Bird & Son, inc. manufacturing facility. Reports are prepared recommending the shift to another fuel if an analysis of the situation indicates this to be a cost-effective move. The possible incineration of roofing mill waste with heat and raw material recovery is being considered as a means of reducing costs through energy management. Review and analysis of the rate schedules covering electrical power supplied at each plant location is a part of this effort. There is an on-going effort to pursuade division management to shift from expensive - but convenient to burn - No.2 distillate fuel oil to lower cost-but more difficult to burn - No.6 residual fuel oil. This change will eventually conie to pass, but not soon enough to maximize the substantial savings in energy costs that can be realized. It will be necessary to expend more effort towards overcoming the reluctance to burn No.6 fuel oil. . c. Reduction in the Cost of Hydrocarbons (Asphalt) Consumed as "peed Stock" in the Manufacturing Process This part of the cost reduction effort reviews the usage of hydrocarbons as a component of the raw material input to the manufacturing process. Asphalt prices are continuously monitored on a monthly basis. The data are analyzed and recommendations are developed, when deemed costeffective, to make capital improvements which will result in a reduced cost of energy purchased in the form of hydrocarbons (asphalt) consumed as "feed stock" in the manufacturing process. 3. COMPLIANCE WITH RULES AND REGULATIONS: The following Ic^s constitute THE NATIONAL Energy ACT passed into law in late 1978: Title of Law Public Law No National Energy Conservation Policy Act PL 95-619 Powerplant and Industrial Fuel Use Act of 1978 PL 95-620 Public Utility Regulatory Policies Act of 1978 PL 95-617 BIRD 011156 BIRD & SON, inc. ENERGY MANAGEMENT PROGRAM 19 October 1979 - 3- Natural Gas Policy Act of 1978 PL 95-621 Energy Tax Act of 1978 PL 95-618 These laws are now in various stages of implementation. Federal rules and regulations are being promulgated, many now in final form. It is essential to stay current with the laws and regulations - not just for the purpose of determining action required to be in compliance with the law - but in order to develop recommendations for action that can be taken to minimize the adverse financial impact of the regulations. Bird & Son, inc. consumes more than one (1) trillion btus per year in each of two (2) manufacturing classifications (SIC-26, SIC-29) for which energy conservation goals have been established by Federal government. Therefore, Bird & Son, inc. is identified as one of the companies required to participate in this program and to make periodic reports on progress made in reaching the goals. It is anticipated that in the near future the task of determining action required to comply with the regulations, and of preparing reports in response to the regulations, will demand an ever-increasing amount of time. 4. DATA COLLECTION: Work in this area permits the Energy Manager to have a readily available data base that can be quickly employed in response to a current need. Development of energy consumption and production data supplies a data base for developing specific energy consumption data (btus/ton) or (kwh/ton). All internal Bird & Son, inc. data are compiled from existing sources (i.e., there are no requirements that the divisions compile and submit data specifically in support of the energy management program). Data are collected for other than Bird & Son, inc. operations where it is considered these data are useful in evaluating the energy situation in any part of the United States. These data are in the form of periodic reports issued by the Department of Energy and other sources. 5. KEEPING CURRENT ON ENERGY RELATED TECHNOLOGY: There is a vast amount of information available from a great many sources covering the state of the art technology relating to energy matters. In addition, an attempt is made to acquire information on process technology in those areas having the potential for a significant indirect effect on the efficiency with which energy is utilized in manufacturing. A small part of each working day must be allocated to reviewing journals and other publications for the purpose of selecting those materials that will be studied in-depth at a later time. BIRD 011157 BIRD & SON, inc. ENERGY MANAGEMENT PROGRAM 19 October 1979 -4- 6. KEEPING CURRENT ON THE ENERGY SITUATION: This area covers non-technology matters^ It requires staying current on energy related legislation being considered by the Congress and on plans and policies being developed by the Administration on energy matters. This task requires allocating a small part of each working day in reviewing the news of the day (or week) to determine the impact of current events on the energy situation. 7. ENERGY IN THE FUTURE: Volumes could, and have been, written on this subject. I will be brief. It is my considered judgement - based on extensive review of a large number of comprehensive reports on this subject prepared by authoritative sources - that energy will continue to be a major problem during the 1980's. The energy problem is not going to go away: Higher prices will not solve the energy problem. The prognosis for increased crude oil production in the United States in not favorable. The political situation in many countries in the world is such that capital is unlikely to be invested in exploration and development when the risk of expropriation is great for those ventures that prove successful. Energy supplies will be tight throughout the 1980's. Prices will continue to move higher at a rate exceeding the inflation rate. 8. RECOMMENDATIONS: , a. Corporate Commitment It is axiomatic that any corporate energy management program must enjoy top level support and commitment if it is to be.most successful. This support and commitment must be communicated via those channels that division management views as representing most unambiguously and most forcefully the wishes of top management. It is unlikely that any division manager will take any action that will have the effect of putting him out in front of top corporate management on energy matters. b. Capital Budgeting The Energy Manager and Central Engineering should have an opportunity to provide meaningful and timely input in the preparation of capital budgets. This input should be provided throughout the entire budgeting period. By input, I refer to nothing more than being granted an opportunity to provide constructive suggestions on the most effective deployment of capital resources, at those facilities that have been subjected to a comprehensive energy survey. BIRD & SON, inc. ENERGY MANAGEMENT PROGRAM 19 October 1979 -5- c. The Impact of Energy on Strategic Planning The long-range planning process should provide for consideration of the impact of energy on action planned. d. Public Affairs Bird & Son, inc. should make its views known on energy matters during the law-making stage in Congress and in the development of rules and regulations by the cognizant enforcement agencies of the Federal government. We should do our part in the never-ending task of pursuading the government to be responsive to the needs of industry. The resources that can be devoted to this task are limited, but we should, out of a sense of duty, find the time and will to make a direct contribution to the law making process. 9. PENDING PROJECTS: Enclosure (1) is a list of non-administrative projects that I am currently involved with. J. P. HRATKO JPH/dv Enclosure (1) PENDING PROJECTS - J. P. HRATKO - 19 October 1979 BIRD 011159 1 s 1 aj - CD O ) CL in H U Uooi ex o> P ro ie c t | P <U I 10 10 10 2 CSI CM CM 0 1 a CM oO o o 2 1nb Z h- - oo X t-- H- cg < <C <c g TV Of DC ac n z SE Z z Od zc. z a ex t * 15 a. a. Gt O. CD a. a. 0 o *"D r? CL "3 w *r| o to t uu *- CO h- fj i-- --i t o V)^JM 3 ZhS *M o <n < CD u. u. as O '1 CD u_ c z zo o P i 3e e: J-- o 41 I --I ` o co> j - t~ O ui<o ZC -* D o a. u. m(/)w s: cc cj oc zcscl CL oz U^H UJ*J< t --1 _j >- *-* uis: cc t-- ZD --J to US Lu Z O o M I-C3 c z > H- OZ LU uj o to o z ac o oz M > --* CD ixC CX Z UJ sC Z CX UJ Lu i > Ul > a: ZD CO Z o 1-4 _J H- -1 < tl > CX UJ H- CO J Z LU ou. o o > CD CD < ex o UJ -- zz UJ o --i _u Z z:> " t-t- ui > cx o ZD Cd CO C 3 > z a: O UJ o Z CD 1-0 -J o ex * O *-h -- Ul Sus h- a. uj ex cc s a. a: z to MUZ U JM Ul LU ZDU. CO _J MZO zo to O D. O CX CX O _l Ui CD c> CD CD > 3* CD a: t-- <90 o -i t-- o 3 UJ CO =><C DC z : Ul Ul Ju.UzcOz h-- t CD Z -4 3 O -J _J --1 ca lh -_l CD gs a. u. too <o ex z oz M f- -J ex x oz ui g or u. ' . BIRD 011160 MEMORANDUM ENCLOSURE (2) To From Dot* Smbjoct 6. L. Dusty - BE J. P. Hratko - BE 24 October 1979 ENERGY SURVEY - SHREVEPORT Reference (a) SHREVEPORT ENERGY CONSERVATION SURVEY REPORT, dated 24 July 1978 (b) SHREVEPORT FELT MILL - REPORT RECOMMENDING THE INSTALLATION OF RECIPROCATING VALVES ON THE THREE (3) DEFIBRATOR BLOW LINES, dated 28 April 1979 1. SUMMARY: The following data are extracted from section 2.1 of reference (a) covering fuel cost reduction and energy conservation that can be realized at Shreveport if the recommendations set forth in reference (a) were implemented: Total annual reduction in cost of fuel that $1,126,505.93 J can be realized ,/ Annual reduction in cost of fuel that can be realized by shifting from No.6 fuel oil to No.2 fuel oil $ 270,132.34 Annual reduction in cost of fuel that can be realized by burning condensate oil $ 24,622.82 Annual reduction in cost of fuel that can be realized through conservation of energy $ 831,750.27 Total cost of fuel and electrical power consumed during the twelve (12) month period from 1 June 1977 through 31 May 1978 $3,012,788.53 Total annual reduction in btus supplied by fuel that can be realized due to conservation 389601410500 Btus Total annual btus supplied by fuel during the 18-month period from 1 July 1975 through 31 December 1976 1175106325000 Btus Percentage reduction in total heat energy that can be realized at Shreveport due to conservation 33.15% ) Tota] energy consumed by Bird & Son, Inc. 5404491900000 Btus- ' (including Bird Machine Co.) during 1975 Percentage reduction in total energy consumed by Bird & Son, inc. that can be realized by implementing all energy conservation recommendations at Shreveport 7.21% 24 October 1979 ENERGY SURVEY - SHREVEPORT - 2- It was estimated in reference (a) that the capital cost of implementing all the recommendations would be approximately $1,500,00.00. As of this date, no action has been taken to implement any of the recommendations set forth in reference (a) and (b). 2. UTILIZATION OF NO.4 FUEL OIL AT SHREVEPORT: Starting in October 1978, Shreveport has replaced some of the No.2 fuel oil requirement with No.4 fuel oil. Apparently No.4 fuel oil is not always available in the volumes required. The following table, based on a review of the invoice file at Corporate Headquarters, sets forth fuel oil purchases at Shreveport during the three-month period July through September 1979: Item Volume (Gals) Cost Avg Price $/Gal No.2 fuel oil No.4 fuel oil Z89000 273750 $167,620.00 144,037.00 $.58 .526 Total fuel oil 562750 $311,657.00 $.5538 The pricing spread between No.2 and No.4 fuel oil indicates that the No.4 fuel oil (48.65% of total fuel oil received) is a mixture in which the greater part is No.2 fuel oil . This factor, combined with the fact that No.2 fuel oil was 51.35% of total fuel oil received, indicates that, for all practical purposes, Shreveport essentially continues to burn No.2 fuel oil as an alternate to natural gas. . The final rule on incremental pricing of natural gas consigned as boiler fuel was published in the Federal Register on 5 October 1979. Under the three-tier Incremental pricing rule promulgated in FERC Order No.50, a non-exempt industrial user whose alternate fuel capability is No.4 fuel oil will be incrementally priced at the No.2 fuel oil level when the three-tier pricing system goes into effect on 1 November 1980. This is a furthur indication of the fact that No,4 fuel oil is in large part made up of No.2 fuel oil. According to computer printout AP0-550-3Q dated 2 October 1979, Shreveport consumed 1,864,459 gallons of fuel oil during the first nine (9) months of 1979. This indicates that Shreveport will consume approximately 2,500,000 gallons of fuel oil during 1979. The potential for realizing a significant reduction in cost of fuel at Shreveport by shifting from No.2 fuel oil to No.6 fuel oil as recommended in section 4.1 of reference (a) is not being realized. 3. NORWOOD ROOFING HILL DATA: Enclosure (1), NORWOOD ROOFING MILL AND GRANULE PLANT^TNERGY CONSUMPTION AND PRODUCTION DATA FOR THE YEARS 1975 AND 1978, indicates on line 20 a value of 1,553,788 btus/ton for the specific heat energy consumption of roofing produced during 1978. BIRD 011162 24 October 1979 ENERGY SURVEY - SHREVEPORT -3 4. SPECIFIC ENERGY CONSUMPTION (BTUS/TON) AT SHREVEPORT DURING 1978: The foilowing data are extracted from Enclosure (2) covering specific energy consumption (btus/ton) at selected roofing mills during 1978: Location Btus/Ton Does Facility Blow Asphalt Production of Granules Included in Total Heat Input Used in Cal Tons Shreveport Norwood Perth Amboy Portland Martinez Charleston Chicago 2293386 1553788 1745266 1631217 1545147 1470403 1450938 Yes Yes No No No Yes No None None None None None 71439 Tons None The specific heat consumption required to produce a ton of roofing was 47.6% higher at Shreveport as compared to Norwood. This is dispite the fact that Shreveport enjoys a higher annual average ambient temperature than does Norwood. A significant reduction in the cost of energy at Shreveport can be realized by implementing the cost-effective recommendations set forth in references (a) and (b). d. P. HRATKO JPH/dv Enclosures (1) NORWOOD ROOFING MILL AND GRANULE PLANT - ENERGY CONSUMPTION AND PRODUCTION DATA FOR THE YEARS 1975 AND 1978 (2) SPECIFIC HEAT ENERGY CONSUMPTION (BTUS/TON) AT ROOFING AND FELT MILLS DURING 1978 BIRD 011163 M r~' ) NORWOOD ROOFING HILL AND GRANULE PLANT-ENERGY CONSUMPTION AND PRODUCTION DATA FOR THE YEARS 1975 AND 1978 ENCL05URE {1) LINE NO. SUB-PARAGRAPH ITEM 1 TOTAL FUa NO.6 FUEL OIL CONSUMED 2 NO.2 FUEL OIL 3 PROPANE 4 NATURAL GAS YEAR 1975 1978 SOURCE OF DATA 2327343 GALS. 2324882 GALS. - 37591 GALS. 58359 GALS. 81792 SALS. 7726712 CU FT 7881160 CU FT FBGA REFER TO NOTE ON LINE 36 LINE LINE 38 LINE 39 line 40 5 GASOLINE 6 GROSS NO.6 Fua OIL VALUE OF FUEL 7 NO .2 Fua OIL 8 roofing MILL _9 PROPANE NATURAL GAS 10 GASOLINE 11 TOTAL N0.6 Fua OIL SUPPLIED BY Fua 12 N0.2 FUR OIL 13 PROPANE 14 NATURAL GAS BTUS 146800 ESC~ BTUS 136856 GST" 2936.7 GALS. BTUS 146800 SET" BTUS 136856 ear BTUS 91614 SC" BTUS 1031 CQTTt BTUS 124952 0BT 341653950000 BTUS 5346501400 BTUS 7966240000 BTUS BTUS 91614 EST~ BTUS 1031 CTFr BTUS 124952 SOT 341292670000 BTUS 5144553600 B1US 7493292200 BTUS 8125475900 BTUS LINE 41 REFER TO NOTE ON LINE 42 REFER TO NOTE ON LINE 43 REFER TO NOTE ON LINE 44 REFER TO NOTE ON LINE 44 REFER TO NOTE ON LtlE 44 line 1 x line 6 line 2 x line 7 line 3 x line 8 line 4 x line 9 GASOLINE 366946530 BTUS line 5 x line 10 line 11+ line 12+ TOTAL BTUS SUPPLIED 354966690000 362055960000 line 13+ line 14+ 16 BY Fua BTUS BTUS line 15 TOTAL aECTRICAL POWER 17 SPECIFIC CONSUMED 6844270 KWH 9622000 KWH _ FBGA ENERGY REQUIRED PER TON 18 OF TOTAL FINISHED PRODUCTION 189227 TONS 233015 TONS FBGA aECTRICAL POWER REQUIRED KWH KHH line 17 + 19 PER TON OF PRODUCTION 36.17 TOR 41.29 TSH line 18 BTUS FROM FUa REQUIREO BTUS 8TUS Tine 16 * ZO PER TON OF PRODUCTION 1875878 TCff- 1553788 WT line 18 BIRD 011164 NORWOOD ROOFING MILL AND GRANULE PLANT-ENERGY CONSUMPTION AND PRODUCTION DATA FOR THE YEARS 197S AND 1878 ENCLOSURE (1) LINE NO. SUB-PARAGRAPH ITEM i YEAR 1975 1978 SOURCE OF DATA 21 TOTAL NO.2 FUEL OIL 403043 GALS 576331 GALS FBGA FUEL CONSUMED 22 NATURAL GAS 157688 CU FT 160840 CU FT FBGA 23 24 GRANULE PLANT 25 TOTAL btus SUPPLIED BY FUEL NO.2 FUEL OIL NATURAL GAS TOTAL BTUS SUPPLIED BY FUEL 55158852000 BTUS 162576320 BTUS 55321428000 BTUS 78B74355000 BTUS 165665200 BTUS .79040020000 BTUS lint 7 x line 21 line 9 x lint 22 lint 23 + line 24 26 SPECIFIC ENERGY TOTAL ELECTRICAL POWER CONSUMED 1834000 KWH 2925800 KWH FBGA REQUIRED PER TON 27 OF BASE GRANULES PRODUCED 38981 TONS 47266 TONS FBGA PRODUCTION 28 COLORED GRANULES PRODUCED 35021 TONS 39723 TONS FBGA line 27 + 29 TOTAL GRANULES PRODUCED 74002 TONS 86989 TONS lint 28 ELECTRICAL POWER REQUIRED KWH KWH line 26 4 30 PER TON OF PRODUCTION 24.78 TOT 33.62 TOT Tine 29 31 32 TOTAL ROOf ING MILL MU ttKAIfUl E PLANT COMPLEX 33 34 35 36 BTUS FROM FUa REQUIRED PER TON OF PRODUCTION TOTAL BTUS REQUIRED BY ROOFING MILL AND GRANULE PLANT TOTAL ELECTRICAL POWER REQUIRED BY ROOFING Mia AND GRANULE PLANT TOTAL BTUS REQUIRED PER TON OF ROOFING MILL PRODUCTION TOTAL KWH REQUIRED PER TON OF ROOFING MILL PRODUCTION BTUS 747567 TOT 410288110000 BTUS 8678270 KWH BTUS 2168232 TDT KWH 45.86 TOT BTUS 908621 W 441095980000 BTUS 14C|3aB^|J BTUS 1892994 TOT- `/ItfVHH IMP TOT line 25 4 lint 29 line 16 + line 25 line 17 + line 26 line 32 4 line 18 line 34 4 lint 18 BASED ON TOTAL NO.2 FUa 01 L PURCHASED DURING 1978 AS SUPPLIED BY COMPUTER PRINTOUT APO-550-30 DATED 3 JANUARY 1979 LESS ENTRY OH LINE 21 37 SUPPLIED BY FBGA FOR 1975 (INFORMATION RECEIVED IN SEPT. 1976) TOTAL PROPANE PURCHASED DURING I97S AS SUPPLIED BY COMPUTER PRINTOUT AP0-550-30 36 NOTES ON OURCES OF DATED 3 JANUARY 1979 DATA 39 SUPPLIED BY FBGA FOR 1975 (INFORMATION RECEIVED IN SEPT. 1976) TAKEN AS .98 TIMES THE TOTAL NATURAL GAS CONSUMPTION TOR 1978 AS SUPPLIED BY 40 COMPUTER PRINTOUT AP0-55Q-30 DATED 3 JANUARY 1979 TOTAL GASOLINE PURCHASED DURING 1978 AS SUPPLIED BY COMPUTER PRINTOUT APO-550-30 41 DATED 3 JANUARY 1979 AVERAGE OF TWENTY ONE (21) TEST REPORTS COVERING DaiVERIES TO FB DURING 1978 42 ASSUMED TO BE THE SAME VALUE DURING 1975 ' GHUSS'HEATINE'TIALIIE OF IW.5 FULL OIL SUMLltu iu LumbusiIUH iuhbinl uNiii OPERATED BY NEW ENGLAND aECTRIC UTILITIES DURING 1977 - (D0E/FERC-U015) 43 BASED ON CONVERSION FACTORS SET FORTH IN FEDERAL REGISTER, VOL. 41 N0.171 44 DATED 1 SEPTEMBER 1976 ENCLOSURE (2) SPECIFIC HEAT ENERGY CONSUMPTION (BTUS/TON) AT ROOFING AND FELT MILLS DURING 1978 LINE NO. LOCATION TOTALBTUS INFORM OF HEAT ENERGY NMBTUS ROOFING MILL PRODUCTION TONS SPECIFIC ENERGY CONSUMPTION FELT MILL PRODUCTION TONS SPECIFIC ENERGY CONSUMPTION 1 NORWOOD 362055.96 2 PHILLIPSDALE 1012693 233014.5 15S378B BTUS/TON 3305 12156449 BTUS/TON (Includlna board) 3 PERTH AMBOY 249159 142766 CHARLESTON 4 (ROOFING! GRANULE] 297661 5 SHREVEPORT 623248 - FELT 591033 - ROOFING 1214281 TOTAL 202435 257712 1745266 BTUS/TON 1470403 BTUS/TON 2293385 BTUS/TON 77113 8082266 BTUS/TON PAGE 164 SHREVEPORT REPORT 6 FRANKLIN 573996 84038 30132 7 CHICAGO FELT 311513 31223 9977036 BTUS/TON 8 CHICAGO ROOFING 76566 9 PORTLAND 215507 52770 80684 1450938 BTUS/TON 1631217 BTUS/TON 10380 8082265 BTUS/TON ASSUMED SANE AS AT SHREVEPORT 10 MARTINEZ 153493 99338.8 1545147 BTUS/TON SUB-PARAGRAPH 11 TITLE ITEM DATA SOURCE OF DATA TOTAL BUIS CONSUMED IN ROOFING PRODUCTION AT FB. lints 1, 3. 4. 12 FJ, FK. FS, FC, FO, FH 1893796 FWBTUS 6. 8, 9, 10 TOTAL ROOFING MILL PRODUCTION AT FB . FJ, FK. FS, FC, tines 1, 3, 4, 13 FO, FM 1068720.3 TONS 5, B. 9, 10 AVERAGE SPECIFIC ENERGY CONSUMPTION IN ROOFING MILL 14 PRODUCTION 177202Z BTUS/TON 11nel2*ilnel3 SPECIFIC ENERGY CONSUMPTION AT NORWOOD ROOFING 15 HILL SPECIFIC ENERGY CONSUMPTION AT FS IN PRODUCTION BY 16 FELT MILL COMPARISON OF 17 SPECIFIC HEAT ENERGY REQUIRED PER TON OF TOTAL FELT Mia PRODUCTION AT SHREVEPORT DURING 1978 ROOFING AND FELT MILL PRODUCTION TOTAL BTUS SUPPLIED TO SHREVEPORT FELT HILL 18 AT NORWOOD AND DURING 1978 1553768 BTUS/TON line 1 FS REPORT BATED 24 JULY 1979 BOB2265 BTUS/TON PAGE 164,line 85 77113 TONS line 5 623246 HBTUS 11ne16xl1nc17 TOTAL BTUS SUPPLIED BY FUEL COHSUMED BY SHREVEPORT 19 DURING 1978 1214281 NMBTUS line 5 TOTAL BTUS SUPPLIED TO SHREVEPORT ROOFING HIU 20 DURING 1978 591033 NMBTUS' line 19-line 18 TOTAL SHREVEPORT ROOFING MILL PRODUCTION DURING 21 1978 257712 TORS line 5 SPECIFIC ENERGY CONSUMPTION IN ROOFING MILL 22 PRODUCTION AT SHREVEPORT - HO GRANULE PRODUCTION 2293386 BTUS/TON line 20 +line 21 SPECIFIC ENERGY CONSUMPTION IN ROOFING MILL PRODUCTION AT NORWOOD line 1 23 1553788 BTUS/TON (3rd column)