Document QJ8761EqBr63LQNrR0k4QmDOv

ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM Tot Mr. T. L. Carey Delet From* Ret J. J. Dorsey, Jr. Copies* Summary of Technical Department Monthly Reports February 1966 March 7, 1966 NEW PRODUCTS DNT During this month an extensive review of operations and design details was carried out with Chemico during the week of February 14. These dis cussions were very fruitful and will lead to a better plant design. We still have several contract questions with Chemico which have not been resolved. Some of the areas were referred to Biazzi for comment and hopefully can be resolved during March. A meeting was held with Wyandotte Chemicals on February 9, 1966 at which time agreement was reached on how to define specifications and methods o analyses. At the same meeting, Wyandotte indicated they will require material in July or August 1966. Later in the month they affirmed they would like to order in August to have material for their plant start during September. It is still planned to air ship the DNT plant equipment to Pensacola unless some thing develops which will allow further delays in completing the plant. During this month plans were made for the new operating personnel for the plant. These people will be required approximately six weeks before the plant start. In anticipation that Wyandotte may not take the full plant capacity in the fall of 1966 and 1967, it is planned to consider the preparation of other aromatic nitro compounds. ADE The pilot plant program at Pensacola continued this month with a further definition of the plant design and operating conditions. The work, which is summarized in Mr. Forester's report, indicates a satisfactory yield and AP00045509 Mr. T. L, Carey -2- March 7, 1966 reproducibility based on chromatic analyses of the reactor material. The plant laboratory work has successfully developed a chromatographic technique which gives excellent checks on knowns and plant samples. The use of 316 stainless steel seems acceptable for the reactor material. A reactor life in excess of six months can be designed, based on present know ledge, which with two reactors in parallel will allow continuous operation with no problem. It was not possible to keep the 1/4" titanium coil from plugging with polymer. At the moment effort in the plant laboratory and pilot plant Is being directed towards separating on as quantitative a basis as possible "in hand" crude amines. This will confirm the yield and product distributions obtained by chromatograph. Once this is verified, it should be possible to continue the planned program. During March, as soon as this verification of yield is obtained, the material for a projected salt separation study at Struthers 'Wells will be made. During the balance of March and April the separation of the crude amines into products for customer evaluation will be done. Of the $30,000 appropriated for operation of the plant, approximately $15, 000 is left for March and April. As is true in most pilot plant operations, it is not possible at this time to determine for sure if this will be sufficient. However, it should be sufficient to assure us that we definitely have a process. PROCESS IMPROVEMENT As was discussed last month, very Little process improvement work in Process Development is proceeding. Mr, Scattoloni has been assigned to the NP group to work closely with Mr. Barfield on all problems in this area. Process Improvement in amines is handled by Messrs. Jones and Kersh, LABORATORIES The volume of laboratory work in February continued unchanged. However, in spite of the additional work, the anticipated variance is probably less than $1,000 for the month. While the details of the laboratory work are covered in Mr. Fowlkes' report, of particular significance is the work done on the ADE pilot plant by Mr. Tolar in the development of an analytical method for the amine components and its use to define yield. This is covered in detail in his report. A new Durabead catalyst for methylamines has given excellent per formance in the small test reactor. A charge for the plant reactor has been ordered and'will be tried some time later in the year. This catalyst has greater strength characteristics, equivalent or better activity, and costs approximately 80% lass than the previous catalyst. AP00045510 Mr. T. L* Carey 3- March 7, 196b ENGINEERING A more detailed review of the major projects and many of the minor projects is presented in the Engineering monthly report developed by Messrs. Hill> Kippels, and Metcalf. This month the study includes more of the smaller projects which have been approved. Attached to this section is a summary of the work Btatus of these projects. It is apparent that many of the projects estimated in the last quarter of 1965 and being completed now are exceeding the original estimates for many reasons. In some instances, the estimates did not take into account the tremen dous amount of construction which is proceeding In the Pensacola-Mobile area, thus making available less high quality craftsmen than have been available in times past. Further, we have experienced the need to install equipment in operating units in operation, and under inclement weather conditions. These have contributed to the cost. As we recognize this situation, in future estimates we will attempt to allow for this by adjusting our labor factors for the lower output as well as the fact that some overtime is essential to hire craftsmen. Presently at times we must almost guarantee 10 hours/day work to obtain welders and pipefitters. We are currently completing and working on many major projects, such as methyl methacrylates, NP storage and loading, amines storage, IBN and DNT. While our design drafting group is working 50-55 hours/week per man, this has been necessary to keep up with the various projects. MAIN TE NANCE Considerable effort has been exercised during February in all of the Maintenance areas to analyze costs and provide information to the various process superintendents. This additional paper work will hopefully be of benefit in helping to control Maintenance costs from a Process viewpoint. Maintenance costs during the current month have been about $158, 000 as compared to the budget of $172, 000. The actual cumulative Maintenance costs for the year are $306, 000 as compared to a budget of $345,000. Areas appreciably over the budget for the year are shown in the table below: Area Solutions Shipping AN Prills Shipping Actual 2,798 4, 342 11,842 Budget 1, 248 3, 166 8,000 AF00045511 Mr. T. L. Carey -4- March 7, 1966 Area Actual Budget NP NP Shipping PVC Amines 40,198 7,052 32,933 27, 843 20,000 3, 334 25, 998 22,166 In many cases improvements have been made in the above areas which could have been prorated over several months, or the total year. However, the total costs were taken this month and will hopefully reflect in reduced Maintenance costs in the same areas later on. REVISED FIVE-YEAR EXPANSION PROGRAM Considerable effort, in cooperation with Accounting, was spent on revising the five-year expansion program. While at month's end the program was not complete, it indicates that the problem areas are what to do in the Nitrogen Division and in methacrylates. The production of methanol in a new 800 ton/day plant appears very profit able even when charging methanol $700, 000 for CC>2 purchased from the ammonia operations. This credit to the Nitrogen Division, plus revised economics for producing and metketing NP, indicates a greater profitability in the Nitrogen Division than had earlier been expected. The plan for presenting the five-year expansion program is to refer to the previous program as far as marketing projections are concerned and to revise the economics based on new conditions either in the sales or production area. MISCELLANEOUS During March three technical representatives of British Hydrocarbon Chemicals from Grangemouth, Scotland visited the plant to discuss problems with methanol production. British Hydrocarbon has a plant virtually identical to Escambia's plant. Their plant was designed by Chemical Construction and has operated approximately four years less than Escambia's. The free exchange of technical information was very helpful. While British Hydrocarbon could profit greatly from mechanical information which Escambia could supply based on its operating experience, Escambia could profit from several excellent studies made by British Hydrocarbon, particularly computer studies over the reform area and synthesis area. In general, we have established an area of mutual exchange of technical information which should be of benefit to both groups. mdc Enel. AP00045512 SUMMARY OF PROJECT WORK STATUS oiect No. Till* 6499 MMA Expansion Appropriation Commlttsd Revised Completion MS MS MS Date 173 237 233 4-1-66 Remarks Coats continue to rieo above estimate primarily because of unexpected problems, shortage of construction -- personnel, and volume of Important work in progress. 6924 Reactor Drop Valves 12 10 24 5-1-66 Awaiting valve*. PVC 6532 6969 Now Railroad Track DNT Plant 26.5 1,,070 22.3 520 23 1, 070 3-11-66 -1-66 Virtually complata. Work In progress, completion date pushed back to 5-1-66. 6572 Duat Collector for N-P 56 34 37 4-1-66 No change, awaiting Dustex hoppers. 69 T3 Additional N-P Storage 223 243 260 4-1-66 Higher costs result from labor shortage and push to complete for fertiliser season. 6577 6376 6565 Improvements and Modifications to N-P Plant Proeaora to Storo IPP Catalyst PVC Production of IBN - Amlnoa 34.5 9 224 44, a 9. 6 54 43 2-1-66 Work complete. 9.7 Complete Complete, 224 5-1-66 Project appears to be on schedule and budget. 6604 6605 6617 6616 6620 6621 6622 New 600# Boilor 320 Water Treating Modifications - Bailer Additional Bulk Car Loading Pacilitiee - PVC Alpine Mill Holding Bin PVC Plant Spare Reactor Agitator Motor PVC Plant 20-Ton Refrigeration Unit PVC Plant Spare Gae End on Monomer Recovery Compressor (PVC) 105 10.4 9.6 4. 1 12 14. 3 132 nont none 2. 6 3, nonm 13.0 320 105 10.4 3. 6 U-l-66 11-1-66 7-1-66 Project appear* to be on schedule and budget. Project appears to be on schedule and budget. Planning. 4-1-60 Nearly complete. 4.1 7-1-66 Spare - awaiting delivery. 12 Indefinite Planning, 14. 1 6-1-66 Awaiting delivery. 6626 6679 6631 6636 6632 6633 6634 6676 New Bag Packaging Equip ment - PVC Plant IS Cerftrel Itoom Chromatographs Additional Electrical Heat 1. 9.6 a New Converter for #1 Plant 15 Well Water to HP Scrubber No. 1 Amine* Plant 4 Install 2 DMA Check Tanks No. 1 Aminas Plant 12.4 Aqua Mix Tank - No. 1 Amines Plant 3.6 Nitrogen Sales Bagging Facilities 47.2 10 7.3 3 1.4 3 i.e 22 18 6-1-66 Awaiting delivery. 9.4 5-1-66 AuvaMng delivery. 35 5-10-66 Awaiting approval on location for heater, 4 4-1-66 In progress. 12.4 4-1-66 In progress, 5. 6 4-1-66 In progress. 47.2 4-1-66 Work in progress, early April completion. AP00045513 Summarr of Project Work Status Paf 2 Preltct No. Titla Appropriation Committed Reviaed Completion MS MS MS Data 6675 Nitrogen Salas Warehouses Appropriation for 12 Appropriation for 4 33.3 11.1 10.8 16.8 3-15-66 W-5066 Additional Amino* storage 250 239 277 4-1-66 Remark* Four of Engineering responsibility will over run beeauee of uit of iel.ee coet estimate. In progree* - 13 tank* in service. 4 on ett*. W-5082 ADS Pilot Plant 50 54 56 4-1-66 Completed. Overrun caused by weather and overtime. 1580-18829 Independent Raw Water Supply FVG 1580-18841 New Condenser Column T-68102 - Amine* 1580-18842 New Condenser Column T-68103 - Amine* 1580-80001 Temporary Centrifuge for MMA 9.7 8.5 9.9 9.3 1.8 9. 7 9-1-66 Only overhead epent. 7. 6 8.3 C ornplete 7.9 9.9 Complete 1.2 9.3 4-1-66 AP00045514 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM Toi Fiomi Ret Mr. T* L* Carey March 1, 1966 s. M. Spurlock Capita* Monthly Report - Personnel Department - February, 1966 PERSONNEL Activity for the Month Division No* of No* of Employees February February Employees 1966 1/31/66 Additions Separations 2/28/66 Budget Executive 56 2 1 Research 53 . 1 0 Agricultural Chemicals 156 13 5 Industrial Chemicals Production 15 386 0 _2 0 _2 57 64 94 59 164 160 M15 18 393 Totals 666 29 8 683 699 There were l6l walk-in applicants, 114 applications Issued end 6 received hy nail. Thirty-seven applicants were interviewed and 97 were tested TRAINING Schools were held for the operation of trackmobiles and forklifts. There were 8 trackmoblle operators licensed and 11 forklift operators licensed. SAFETY The Corporation has worked 93 days or approximately 224,000 man-hours without a disabling injury. The various division records are as follows: Division Man-hours Days New York Office Research Division Atlanta Division Pensacola Plant Corporation 331,000 786,500 56,500 1,779,000 224,000 1,669 3,149 53 770 53 AP00045515 Monthly Report -2- March 1, 1966 SAFETY (Cont'd,) Medical Section The Medical Section treated 12 injuries for Escambia and 20 for Carroll, performed 14 pre-employment and l6 annual physicals and gave a total of 0 immunization injections* EMPLOYEE RELATIONS One 5-year service sward and three 10-year service awards were presented* All of the work has been completed on the first edition of the new house organ. The Sphere, end it should be mailed to the employees by terch 10, 1966, work Is continuing on Job Descriptions and Job Performance Standards for the first four levels of supervision in the Production and Agricultural Sales groups. LABOR RELATIONS There has been and la continuing to be a great deal of union organizing activity in the Pensacola area and particularly in the case of our next door neighbor, American Cyanamld* The Textile Workers Union of America has handblUed American Cyanamld at their gates on two different occasions and have held at least two group meetings* This effort la continuing and we ere endeavoring to determine whether or not any of this unrest la filtering into our plant. INSURANCE During the month of February, ve paid 6l claims under our Group Hospitalization program which amounted to a total of $ 11,004*55. VS have experienced considerable difficulty In placing our Fire Use and Occupancy Insurance In the London market* We were able to place 85# of this coverage without too much difficulty and have now placed 97i& with a great deal of difficulty* Whether or not ve will be able to place the remaining 2^ la doubtful. We settled the following claims during the month; Five claims amounting to $ 1,253*65 under our Automobile Liability and Property Damage Insurance* Five claims amounting to $ 2,474.55 under our Public -- ' Liability and property Damage Insurance. AP00045516 Monthly Report 3- Marcb lj 1966 PfSURftMCB (Cont fd,) We settled the following claims during the month; (cont'd.) Che olein amounting to $ 569.85 under our Fire policy, explosion which occurred in the Amines Plant on February 3, 1965. EMSjkc AP00045517 PRODUCTION MONTHLY REPORT March, 1966 i AP00045518 .ary T L C INTEROFFICE MEMORANDUM To: H. F. Roderick Date: April 7, 1966 From: Re: T. L. Carey March Production Dear Mr. Roderick: Copies: L, W. Gopp H. L. Harwell Dr. W. M. Smith Dr. T. H. Vaughn J. F. Walrath J. G. Gibert The production units averaged almost exactly budget for March. This was after accruing $10, 000 for future ammonia plant repairs and $5,000 for methanol plant repairs. The following page tabulates the variance results for the past three months and year to date with a column showing April's estimated results. I think you will find the tabulation an interesting presentation and one that presents a clear picture of our production operations to date. HIGHLIGHTS Steam > Steam usage is quite high and requires operation of all units at capacity. The inefficient small boilers accounted for most of the variance. There is no relief in sight until the new, larger boiler is in operation late in the year. Water - Usage will gradually increase to wipe out the favorable variance to date. Overhead - This item was badly under estimated for March. It is receiving immediate attention. Ammonia - A reasonably good month is expected. Nitric Acid - Major maintenance was performed the latter part of March and a major part of the repair costs will appear in April's results. Production rate will be up as a result of the repairs. 83% AN - Sales volume is expected to pick up in April. Urea - Practically no production is required for April. Essentially idle plant. AP00045519 Mr. H. F. Roderick -2- April 7, 1966 COST VARIANCES FROM STANDARD Steam Water Overhead Alloc. toMMA Ammonia Nitric Acid 83% AN Urea U-34 Bay-Sol Frills NP (P2Os) PVC Methanol Methyl Amines Ethyl Amine s Isopropyl Amines TOTAL January 3, 821 (2,310) (889) - (39,312) (5,582) (6,126) 526 1, 731 (4,490) (11,366) 44,549 (26,841) (30,200) (10.812) 24,333 - (62,968) February March Total To Date April Estimate 3, 924 (4, 133) (6,686) 1, 226 (467) 2,642 1,308 4,371 381 (4,454) (17,112) 46, 543 (1,773) (6,608) 29,970 5,460 7, 734 8, 583 (3, 178) 17,907 (5,482) (31,660) 12,846 2,209 4,536 1,098 (10,874) (29,073) 24,035 (7.555) (9,818) 10,071 123 16,999 16,328 ~ (9.621)10,332 8,000 44 99 (2,500 )'??a 5, 000 ^7Y-2) (4,256) (4,000) (71,439)- (25, 000)'; i m 9,906 15, 000 i r.sr a (2,609)- Budget - r*. 9,433 10,000 3,210 2.000 (19,818) (5,000) (57,551) (20,000).- 115, 127"--12, OOQ-^.^ (36,169) cnrooofc-*-- (46,626)- Budget ftjt* 29,229 29,916 Budget - 15, 000 lOo'S 24,733 5,000 , 62,326 767 125 500 Methacrylates HIBA MAA MMA TOTAL 66,570 21,500 37,500 125,570 47,000 30,931 30,033 46,895 46,796 41,484 107,964 .135-, 175 159,465 97,227 107,027 363,719 50, 000 40,000 30,000 120, 000 AP00045520 Mr. H. F. Roderick -3- April 7, 1966 U-34 - Sales volume. Bay-Sol - Relatively high rate of production geared to sales and favorable solution mix. Prills' - High volume as a result of good sales. NP - Set a new production record in March and expect to set another in April. High use and high cost of F2O5 plus a write off of prior over-use of sulfuric acid caused the major variance. Operation changeover to 1-1-0 grade indicates a high quality product and good production rates. May will be the first month that should eliminate the negative monthly variance. PVC - April is off to a good start volume wise and a favorable product requirement should result in an excellent month. Methanol - Expect production to be about on budget. May make a small favorable variance. Amines - Detailed reviews and estimates have been made for these two plants. April will be better than February or March. The total $ , .variance for the year is now estimated to be approximately 250 000 METHACRYLATES A new production record was set in both HIBA and MAA in March. Losses of product, however, in both the MAA and MMA sections combined to produce the largest negative variance of the year. This was very disappointing and was primarily caused by large amount of polymer formation in both sections. A revised and improved inhibitor addition system has been installed which should materially reduce these losses in April. A 60,000# order for repurified MAA is presently being filled. Following this MAA will be purified prior to conversion to MMA. Prior experience indicates that if relatively pure MAA is the feedstock, yields of MMA will be at or close to design. AP00045521 Mr. H. F. Roderick -4- April 7, 1966 Because the "Liquid Phase Dehydration" system looks so promising, we are moving rapidly to the detailed design stage for possible plant installation. The possibility of making a major process improvement may make it desirable to make the change as early as possible, probably April. A very rough estimate of cost is $20, 000 and a plant down-time of from four to five days. During this down-time other necessary repair work in the plant can be accomplished. These estimates are being firmed up and I will keep you informed. TLC/djs r/ T. L. C^rey AP00045522 T e c h n ic a l S u m m a ry ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM Tm Fnm Mr. T. L. Carey DH April 5, 1966 J. J. Dorsey, Jr. Gopt Summary of Technical Department Monthly Reports - March 1966 NEW PRODUCTS DNT All phases of this project continued to move forward satisfactorily. The location of the plant in Area B was resolved with the other operating departments of Escambia and the insurance company. It was agreed to locate the storage tanks approximately 15 feet&elow grade in a special revetment. Minor revisions to process and engineering flow sheets continue to be developed with Chemico. Details of the control room and motor control center were resolved with Chemico* The control room will accommodate future expansions in production. Some discrepancies are apparent between Bia2zi flow sheets for utilizing various concentrations of nitric and sulfuric acid. These will be resolved. On Thursday, March 31, Wyandotte notified Sales that material would not be required prior to November 1, 1966. The program to complete the plant by August 1, 1966 will be modified to allow the plant to be completed by perhaps September 1 to 15, while minimizing construction costs. With the probable late start on Wyandotte's part, it is desirable to produce some material to establish our ability to produce quality material for possible sale during 1967 to other customers, in addition to Wyandotte. It further"appears desirable to investigate the separation of various mononitra tion products and dinitration isomers for possible sale as pure products. This may be necessary to bring the plant operation to capacity in 1967. ADE During this period it was possible to demonstrate that a satisfactory yield is being obtained from EDC. The difficulty of separating crude amines AP00045523 Mr, T. L. Carey -2- April 5, 1966 from the reaction products in anything short of the basic plant is difficult for the uninitiated to comprehend. Mr. Tolar has done an outstanding job in separating this material in the laboratory and in developing a method of analysis by chromatography which gives reproducible, reliable results. Further, a distillation in the laboratory indicates that products equalling or exceeding that of competitive materials can be produced. His reports of March 18 and March 30, respectively, demonstrate that a 90+% yield is obtained and compare pilot plant produced materials with commercial materials. To obtain, the type of verification which our management appears to desire for this project may require the expenditure of at least $500, 000 in a pilot plant, which will virtually duplicate the commercial plant in most respects. The fact that these products are made by all other producers from the same raw materials, in the same manner, in similar equipment seems to have little bearing. The anticipated pilot plant program will be completed at the end of May with the production of some quantity of each of the various products for possible future customer evaluation. An additional $15, 000 will be required to operate the pilot plant through May. How to take the project on to a commercial phase remains to be resolved. PROCESS IMPROVEMENT Little process improvement is being carried out in any area except in NP by members of the Technical Department. Messrs. R. E. Jones and J. R. Kersh are totally involved in resolving production problems and supplying some new product information. The plant trial of the new methylamines catalyst looks excellent after several weeks of operation. Necessary process improve ment work should be done in PVC, ammonia, methanol, nitric acid, urea, and ammonium nitrate. The small cost of this improvement work has always been justifiable based on the improvements made, LABORATORY Laboratory costs are approximately $7,000 above budget for the first quarter of 1966, including the work in the ADE program. However, when this work is transferred to the work order taken out to accumulate operating costs in the ADE project, actual costs are estimated to be approximately $2, 000 below budget for the first quarter. An analysis of laboratory costs indicates that four major areas share 82% of these costs; their individual percentages are as follows: MMA - 42%, amines - 17%, PVC - 13,3%, and ADE - 9.7%. Four laboratory technicians were officially transferred to MMA pro duction this month. During April, when the new chromatographs-tfor amines AP00045524 Mr. T. L Carey 3 April 5, 1966 are obtained, the transfer of some laboratory technicians to amines pro duction will be effected with an ultimate release of operators forfcther plant assignments. Virtually no work is being carried on in the laboratory to produce new amines. A considerable amount of work, including a visit to the State Board of Health to discuss Escambia's effluent to the bay, was carried out by Mr. Fowlkes. The program he has developed would appear to maintain a satis factory effluent control program as far as the State Board of Health is concerned. Considerable work was done on evaluating new analytical methods for methylamines and comparing the precision of these new methods as well as the quality of Escambia's amines with competitive products. ENGINEERING A summary of the status of various construction projects is attached. A more detailed analysis is contained in the engineering report of these projects. Mr. Metcalf's report on project work is included with the engineering report. His report on instrument and electrical maintenance is covered elsewhere. Similarly, those projects which are still handled in Maintenance are listed in the project summary. There is a need to clarify the project res ponsibilities in these areas. The large major projects continue to show overrun. The worst condition appears to be in the methyl methacrylate construction work, which particularly suffers from the need to install the equipment with the plant in operation. This has led to a major overrun in the labor area. A separate report will be issued analysing this. Another area of substantial overrun is in the NP storage building, where it was necessary to fabricate some conveying equipment, which might normally have been purchased at a lower cost, in order to complete the plant for the fertilizer season. REVISED FIVE-YEAR EXPANSION PROGRAM A revision was issued on March 5, 1966. During the month various meetings were held to discuss further revisions to the program. At month's end it appears that agreement on the content of the program has been reached and it is mainly necessary to define the timetable for the various projects and to firm the economics on the methanol expansion program. mdc J. Dorsey, Jr. AP00045525 `roiect No. Tide SUMMARY Of PROJECT WORK STATUS Appropriation Cammittsd Rsvlssd Completion MS MS MS Date 6499 Increase Capacity MMA Plant 175.0 287.0 287.0 5- 1-66 Remark* Job complete. 650? Air Conditionli Enclose Wet Bay Control Room 6.0 3. 3 6.0 4-30-66 6524 Purchaie Reactor Drop Valve* . PVC 12.0 10. T 12.0 5-1-66 Valves are hare, 6526 Amine* Catalyst Test Unit 2.2 1.7 2.4 4-30-66 6528 6532 Expand Shop io Area A Additional Rail Siding 11.| 26.5 4. 3 22.4 11.1 4- 30-66 23.5 5-1-66 Job complete. 6533 Ammonia Recovery Pus* sure Control System 3. 3 non* 3. 3 T-1-66 6565 DNT Plant 1070. 0 341.0 1070.0 8-1-66 No change. 657 3 New NP Warehouse ' 225.0 271.0 272.0 5-1-66 Job complete. 6583 Equipment to Produce tBN h SEA - Amines 223.4 106. 5 224.0 3-1-66 On schedule. 6604 6605 661? 6618 6620 New 600 pel 100, OOOffhr. Boiler Upgrading Water Treatment System - Boiler Additional Bulk Car Loading Facilities - PVC 320.0 105. 0 10,4 Holding Bin lor Alpine Mill PVC 5pare Reactor Agitator Motor PVC 3.6 4.2 132.0 83.0 2.0 320.0 11-1-66 105. 0 11- 1-66 10.4 7-1-66 Project still on schedule and budget. Project still on schedule and budget. On schedule, 2.7 3.6 4. 1.66 Complete. 3. 5 4.2 7- 1-66 On schedule. 6621 Refrigeration Unit for Cooling Solution Tank* - PVC 12.0 non* 12.0 Indefinite Select equipment In April 1466. 6622 Spare Block for Roeovory Compressor* - PVC 14. 3 12. 0 1J. 3 6-1-66 On schedule. 6626 Packaging Equipment to Uss Valvs Bags tor PVC 18.0 12. 0 18.0 6-1-66 On schedule. 6624 6631 6636 66 32 6633 6634 Control Room Chromatograph* Additional Electric Heat fa New Converter for 11 Plant H. P. Water Pump, H. P. Scrubber #1 Plant 9.6 8.0 15.0 4.0 New Methylamino* Check Tanks Aqua Mix Tank #1 Aminas Plant 12.4 5.6 7. 3 13. 7 1.4 7.4 3.4 9.6 35.0 5-1-66 6-1-66 4.0 5- 1-66 12.4 5-1-66 5.0 4-11-66 Availing delivery. Revised to Include gt* fired heater. On schedule. On schedule. On schedule. AP00045526 Stimm*ry of Project Work Statue March, 1964 Pago 3 Protect No, Titla 66)5 Plant Steam Recorder Appropriation MS l.S Committed Revleed Completion MS MS Date non* l.S 6.1-66 Remark* On order. 6641 1560-80001 1580-80002 MMA Till Centrifuge Cryttallieer Revltlen* 1.3 16, 3 3.9 9. 3 8-1.66 8.9 16.3 8-1-66 On echedute. 6647 6678 Ammo-Phot Production Nitrogen Sale* Warehouaee Appropriation (or 12 Appropriation (or 4 200.0 13. 3 11. 1 6676 Nitrogen Salea Bagging 47.2 45.0 16.0 32.0 200.0 6-1-66 18.0 3-26-66 47.2 3-18-66 Some delay* reiulted in getting equipment approved. 4 of Engineering reeponellAlty will over run becauaeef ore ot Salta coat aetimat* Job complete 3-28-66. Complete 3-16-66. 1580-18629 Independent Raw Water Supply Pvc 1580-16836 Hot gee bypati valve on refrigeration machine 1580-18835 Aft*rce1r for Att Com* prooior 1580-16839 New Blowdown Tank (or 1560-16851 Chunk Cruaher (or Slurry Sy item 1580-16854 30-Ton Air Conditioning Syetem for Field Admlnlatration Building 1580-18857 Concentrator Vent Linee 1770-5066 Additional Amine* Storage 1770-5082 1770-6003 ADE Pilot Plant PVC Reactor Reglaaalng 9.7 1.2 t, 9 2.7 .1 7.4 2.0 250. 0 50.0 38,0 .1 9.7 9-1-66 On echedule 1.0 1.2 1. 3 1.9 1.5 2.1 5.18-66 .1 .9 7.0 7.4 4- 30-66 On tchtdule. ,2 260.8 89.0 15.0 2.0 27.0 4-6-66 60. 0 38. 0 9-1-66 Complete April 1966. Job Complete. On tchtdule. /fie 4/5/66 AP00045527 P ersonnel ESCAMBIA CHEMICAL CORPORATION Interoffice Memorandum To: to. T. L. Carey Date: April 4, 1966 From: E. M. Spurlock Re: Monthly Report - Fersonnel Department - torch* 1966 PERSONNEL Activity for the 1Month Division No. of No. of Einployees March torch ESroloyeea 1966 2/28/66 Additions Separations 3/31/66 Budget Executive 57 Research 5^ Agricultural Chemicals 164 Industrial Chemicals 15 Production m 4 3 15 0 11 1 60 64 1 56 59 7 172 199 * 0 15 18 _4 ho6 399 Totals 683 39 13 709 738 * This includes l6o as Hated on the budget sheet plus 39 temporary employees who were not shown in number on the budget sheets* There were 193 walk-in applicants, 134 applications were issued and 11 received by mail. Sixty-one applicants were interviewed and 57 were tested. TRAINING Schools were held for the operation of trackmobiles and forklifts. There were 6 trackmobile operators and 6 forklift operators licensed. SAFETY The Corporation has worked 19 days or approximately 73,549 man-hours without a disabling injury. The various division records are as follows: Division Man-hours Days New York Office Research Division Atlanta Division Pensacola Plant Corporation 334,400 794,000 20,000 1,829,000 73,549 1,700 3,180 19 801 19 AP00045528 Monthly Report -2- April 4, 1966 SAFETY (Coat'd.) The Atlanta Division experienced a lost tine Injury during the month. Personnel of the Anrconla-MBthanol plant in Pensacola completed six years without a lost time injury. Medical Section The Medical Section treated 15 injuries for Escambia and 42 for Carroll, performed 15 pre-employment and 17 annual physicals and gave a total of 12 immunization injections. EMPLOYEE RELATIONS Three 5-year service awards and two 10-year service awards were presented. The first issue of the house organ, "The Sphere", was mailed in March and was well received by the employees. LABOR REIATIONS The Textile Workers Union of America has petitioned the National labor Relations Board for an election In the American Cyanamid plant. After the petition was filed, the International Chemical Workers Union moved in two organizers for the purpose of intervening in the Cyanamid election. They are presently making house calls and handbilllng the company. They have informed ua that once the election at Cyanamid is completed, the Chemical Workers expect to work on Escambia's employees. We have held three meetings with all first-line supervisors for the purpose of acquainting them with their rights and the way In which they can be most effective in combating this coming organizational drive. INSURANCE During the month of March, we paid 85 claims under our Group Hospitalization program which amount to a total of $ 12,850*54. The London tferket on Use and Occupancy Insurance for chemical plants has become almost nonexistent due to tremendous losses in 1965 resulting from hurricanes, we did manage to secure a quotation from the London market on our renewal which was due April 1st but the Underwriters could not guarantee ua that they could place the entire coverage. We then tested the Domestic fferket and obtained a firm quotation for 100$ of our coverage from the Oil Insurance Association, however, we were required to accept a 5-day deductible. The London Market had quoted a flat $ 100,000 deductible, we have accepted the O.X.A. proposal and will work out the details next month. Prior to this, we had no. deductible. This coverage was worked out with the assistance of the EBS Insurance Department. AP00045529 Monthly Report -3 April k, 1966 INSURANCE (Cont'd.) We Bettled the following claims during the month of March: Six claims amounting to $ 1,391*31 under our Automobile Liability and Property Damage Insurance* One claim amounting to $ 211*63 under our Public Liability and Property Damage Insurance* TAXES We filed Ad Valorem Taxes for the Pensacola plant with the Santa Rosa County Tax Assessor on March 30, 1966, however, ve were advised by the Tax Assessor that they were endeavoring to go on a 100# Evaluation during 1966* If this study is completed in time for the 1966 tax rolls, the rendition made by us to the Tax Assessor will be void and we will have to negotiate another tax evaluation. EM3:kc AP00045530 PRODUCTION MONTHLY REPORT April, 1966 AP00045531 L .C . INTEROFFICE MEMORANDUM To: H. F. Roderick Date: May 9, 1966 Fr om: Re: T. L. Carey April Production Dear Mr. Roderick: C opy: J. G. Gibert L. W. Gopp H. L. Harwell Dr. W. M. Smith Dr. T. H. Vaughn J. F. Walrath Two of the production units had outstanding results for April. Both PVC and NP set new monthly production records. PVC produced 4, 604 M pounds and NP, 6,710 tons. NP production costs were $1.81 per ton lower than the previous best costs. Nitric acid was as predicted - a $15, 000 negative variance due almost entirely to a carryover of costs from the maintenance shutdown in March. Volume is now up to standard. Methanol was negative $12,000 due to a broken tube in one of the reformers. This necessitated operating the plant at less than half rate for three days. Five thousand dollars was again accrued for future maintenance. Ammonia had a reasonably good month with a positive variance of $23, 000. Again $10, 000 was accrued to help defray the costs of a major maintenance turnaround that is being planned for late June or early July. The nitrates and solution plants were negative by $3, 700. The problems here were no urea production due to sales and not sufficient nitric acid and ammonia to run 83% and prills at a good rate. The amines plants experienced considerable process difficulties which resulted in a production substantially below budget. Yields were good however, which partially offset the volume variance. The plants are now operating at a much better rate and with the additions being made, it is expected that by July these plants will be operating at above budgeted rates. April variance was a negative $54,000. The overall results from all of the production units was negative $37, 100. ti AP00045532 Hi F. Roderick -2 - May 9, 1966 May will be an unusual month from the agricultural chemicals portion of our production. This was brought about by a sales situation: 1. NP inventory is sufficient to provide for all projected sales. 2. A shortage of ammonium nitrate and solutions. (Sales needs all we can possibly make and sales prices are good at this time.) Because of this situation, a study was made to compare May profitability of making NP vs. diverting the NP use of ammonia and nitric acid to production of ammonium nitrate and solutions. The results were as follows: 1. NP, no production - variance 2. Ammonium nitrate and solutions increase - variance 3. Profit from additional sales of prills and solutions 4. Value of granulating 3000 tons NP fines during this period vs. selling at $3 off list -$55,000 + 26,000 + 40,000' + 10.000 Net in favor of diverting NP raw materials +$26, 000 Due to this special situation that exists at the height of the fertilizer season, the decision was made to shut the NP plant down and convert the ammonia and nitric acid to AN, prills and U-34 solutions because of the better profitability. This was a reluctant decision because NP would have produced a positive variance in May as has been predicted. For example, with the same production as April and using only the difference in price of phosphoric acid if purchased under our agreement with W. R. Grace, April's results would have been $6, 000 positive. (This acid is available from Grace in May.) AP00045533 H. F. Roderick -3- May 9. 1966 There is one other advantage and that is this shutdown will allow for the few days necessary to complete installation of the ammonium phosphate equipment. This project is on schedule and should be in operation on June 1. Methacrylates The operation of this plant featured a number of major changes that were being completed at the end of the month. The plant was shut down for eight days and this coupled with the changes contributed to the negative variance of $161, 000. The changes: 1. Installation of liquid phase dehydration in place of the vapor phase. This will be much simpler equipment and operation and it is expected will improve yield and quality. 2. Repacking of the methanol stripper. 3. Installation of an additional tray in the HIBA column to improve quality o HIBA by removal of more of the low boilers and better operation of the past flash unit. 4. Installation and testing of the Western States continuous centrifuge. 5. Change to use of xylene in the MAA decanter. 6. Set up for plant scale test of 95% isobutylene to improve absorption and determine operation of reactors under these conditions as well as operation with no mother liquor return. Hopefully will point the way to increase HIBA production. It is hoped that most of these items will have been evaluated by the end of May. i i AP00045534 H. F. Roderick -4 - May 9, 1966 Bonus The production incentive plan was announced to all operating and maintenance groups early in April. Meetings were held with each group individually to announce and explain the plan. It was well received and,I think, is beginning to show results. I am well pleased so far. Superintendent Reports You will note that this month the area superintendents have each estimated the variance for May in their units. This is the logical outgrowth of the cost awareness program started in February. This program coupled with the bonus plan will be most beneficial to improved results. AP00045535