Document a1XLrDbdQz2B5dOoBLDk70BOM

Union Carbide Corporation Metals Division Niagara Falls, NY 14302 October 8, 1980 M E MORAN D U M To: B. L. Ingalls H. B. Rhodes J. E. Walsh CC: G. R. Adams R. E. Byrne, Jr. W. B. DeAtley G. L. Dickson T. P. Norris F. J. Shortsleeve/R. W. Rebholz File From: J. L. Myers Subject: Summary of Meeting with Montello The following is a summary of our recent meeting with Montello, our "world-wide" distributor of "Calidria" asbestos products for drilling fluid applications. Please advise if you have any corrections, comments or additions. Date of Meeting: 9/30/80 Location: Rodeway Inn, St. Louis, MO Attendees: Montello - K. N. Campbell, H. Wyatt, A. Johnson UCC - J. L. Myers, J. E. Walsh, B. L. Ingalls, H. B. Rhodes Discussion Items: 1. Massena Order - This 465-ton order for CSV was apparently destined for 5 different customers in various countries, presumably South America. We received and produced the order in May for shipments to be completed by June 30. The first shipment of 116.25 tons was not made until 9/18/80 and the balance is still in King City (we invoiced Montello for the entire amount $74,400, on 6/30/80). Montello has been trying to force Massena to take the material by "threatening" interest, storage, repackaging and other types of extra charges; but Massena's customers have presumably been unable to correct import license problems. I received a call from Bill Kennedy of Massena confirming their export problems and begging patience. I referred him to our International Distribution people for help but he did not follow up on this. Montello, with my concurrence, decided on 10/6 to cancel the order and bill Massena only for actual out-of-pocket costs. Since we had none we will receive nothing, except having Montello's money since July for material not shipped. Massena has assured Montello that orders will eventually be cleared for shipment, so we should see the business this year. We have excess inventory now but it will be used by Montello for filling regular orders. -2- October 8, 1980 2. Montello's major concern is potential liability problems for themselves and their customers. I will check with Sibley on whether or not we can do something to assuage their fears. 3. Jack Walsh reviewed Montello's monthly forecasting vs. actual purchases a summary is attached showing a deviation for the last four months of only 3% for CSV and 13% for SHURLIFT. 4. Production of silane-treated asbestos by a compounder for Dresser is at a virtual standstill because of poor performance of final product. They have tried JM's Flosal and get better performance but poorer stability. They are evaluating various forms and grades of our products and Montello is working closely with them to avoid losing this market. Dresser claims that our product varies by 50-100% in some physical properties but we, or Montello, have not been able to duplicate their results. We have offered to consult with or visit their plant to render technical assistance. So far they have not accepted our offer, probably fearful that we will "steal" some proprietary information. Dresser reportedly found 4-5% calcite in one lot of CSV. Blair will forward our analysis of the suspect lot which showed nothing unusual. 5. Montello is convinced that UNIVIS is the only product to prevent continued loss of market share to J-M's water-wetted "pelletized" Flosal. The oilwetted version of UNIVIS now seems impossible to produce at a cost which would permit an acceptable price in the market place. Water-wetted is also not feasible unless we can produce it as a partially-dried pellet, not by us or them re-wetting the dried pellets. They feel that the current UNIVIS (Super Standard Grade mini-pellets) can be successful only if we can preclude the presence of excessive fines (primarily caused by our pellet cooler) and package it in sewn-top bags to prevent fiber from col lecting between the paper bag and plastic shrink-film. I completely agree with them, but we are apparently not prepared to offer this; although they are willing to finance the equipment, share the cost, give us guaranteed requirements - or whatever. It was left that they would try to find some one to do the packaging if we can provide bulk mini-pellets at a price low enough for them to do the packaging and come out with a salable price to the field. I offered to share some of the financial cost for promoting and introducing UNIVIS to the markets. If they can find a packager they plan to make a significant promotional effort. 6. They have been asked to prepare an article for publication by the Independent Association of Drilling Contractors (1ADC). An article on JM's Flosal has recently been published and IADC will "endorse" Flosal unless Montello can convince them that UNIVIS is just as "safe" to use. We will review all information prior to publication. A copy of the Flosal article is attached. 7. Blair presented a summary (copy attached) of recent UNIVIS dust counts compared with regular CSV and oil-wetted material. As expected, UNIVIS results are basically in between the other two. Regular monitoring on CSV usage has not been done since 1977 because "UNIVIS" has been "coming" since then. It was decided that more frequent monitoring is in order so that customers can be given more up-to-date information. Montello was reminded that none of our dust count reports can be sent to customers without our prior written approval. -3- 8. They will order the remaining 50 tons of UNIVIS from King City and addi tional performance and monitoring tests will be conducted. 9. Harry Rhodes presented a summary of health and regulatory matters. 10. Montello has established a laboratory and will be able to perform various tests associated with drilling fluid applications. The first order of business will be to develop improved QC procedures - with our assistance and collaboration. 11. Pricing and availability were discussed in light of our increased costs and the unexpected orders by GAF. They were advised that our overall prices were going up 10-15% the first of the year and they would be officially notified at least 60 days before the end of the year, per our contract. Supply of reasonable requirements was essentially assured. 12. Drilling Specialties Co. (DRISCO), a subsidiary of Phillips Petroleum, is the sole distributor for j-M's Flosal and is Montello's only competitor in this application for asbestos. DRISCO has always maintained a low profile on Flosal but have kept a good market share because of Phillips' influence. They have recently shed the low profile image, see attached ad, and the reasons for this were discussed. Apparently Flosal must be a good margin product for them and they are after an increasing share of the approximately 10,000-ton market. Canadian asbestos sales of short fiber are at an all-time low and J-M is probably "pushing " to move all the "waste" fiber they can. Note that the word "asbestos" is not used in their ad. Looit Loaded 19,400 16,SOO AIRBORNE ASBESTOS FIBER EXPOSURE LEVELS FOR DRILLING RIG PERSONNEL Highest Ceiling (fibers/cc) Crushed SVB >5 SVB Mini Pellets Univis Mini Pellets/o'^^^) 1.294 0.307 Highest TWA (fibers/cc) >0.1 0.078 0.043 r-- <o +-> c Ol E Ccc*J 3C Oo r> fd Ui O o o -vtr CO CO o o o '3' O o -*a*- lO cn o o o in o o ^r f-- cn o o i-- m o o cn CM o o vo 00 o <0 ID to oooo SUMMARY OF AIR MONITORING FIELD TESTS o> <o cf" -M C 3s- <D CM r-- LO E O CL c r-- r-- o r-- CO CO cc Eo ccn o3 sr" O O o o < r" > oo a: o<fu- 4O>, C LxJ H3 41-/>) Q <d 0) c UO r-- o LxJ O. .ccn o to o CO LO r-- cn CM LO oonr s. CQlJ. o o r-- o CO 00 oHOO- cn c *^~ L0x0J L. 3 00 O < cn c i- 3 01 o -M i/i <V -C o> -- LO O ro r- CO f-- uo O oo CO CM LO "O Q> Q. O CO O O OO O UO CM CM o to *3 c 3 O Q- OO LO LO CM CM CRUSHED SVB SUMMARY OF AIR MONITORING FIELD TESTS (ASBESTOS FIBERS PER CC OF AIR) .[Vinnft* of $VB Dumped ^^6-76 10 1-12-77 5 6-9-76 10 7-2-75 8 9-23-77 5 -5 3-14-75 3 1-12-77 9 6-8-76 10 Personal Ceiling During Dump >5 f/cc 1.7 f/cc 0.2 f/cc 1.8 f/cc 0.3 f/cc 0 f/cc 0.7 f/cc 0.3 f/cc 0.9 f/cc No. of Unopened Bags Transported During Warehouse Operations 20 30 20 Personal Ceiling Counts 1.7 f/cc 1.5 f/cc 1.6 f/cc How To Handle A Drilling Mud Asbestos Additive THE FOLLOWING recommended work practices are intended as general guides respecting the handl ing of Flosal8, , a Drilling Mud grade Asbestos (hereafter referred to as DMA) produced by Drilling Specialties Company, Technical Services Divi sion. This article may be helpful to superintendents, and drilling crews in understanding, explaining and using such procedures. Field tests conducted indicate that the recommended work practices set forth herein should result in an employee's 8-hour Time-Weighted Average (TWA) exposure being below 0.1 fibers per cubic centimeter of air. Such exposure would be well below OSHA's currently prescribed limits of two fibers longer than five micrometers per cubic centimeter of air as an 8-hour time-weighted average exposure and 10 fibers longer than 5 micrometers per cubic cen timeter of air, as a ceiling concentra tion. On October 11, 1978, OSHA issued Program Directive #300-16 which pro vides uniform inspection and com pliance procedures for medical ex amination requirements of the asbestos standard. The principal ac tions taken by OSHA in this directive were to clarify the term "exposed to airborne concentrations of asbestos fibers" and to indicate the scope and applicability of medical examination requirements under the asbestos stan dards as follows: a. The term "...exposed to airborne concentrations of asbestos fiber..." is administratively interpreted to mean "exposed to a minimum of 0.1 asbestos fibers longer than 5 micrometers per cubic centimeter of air..." b. Medical examinations will be re quired for any 7 to 8-hour timeweighted averaged concentration of 0.1 f/cc, or for a greater concentra tion. It is felt'by the manufacturer that if the following work practices are 92 Hopper Hose Using Suction followed one might reasonably expect 8-hour TWA exposure levels to be below those specified by OSHA Pro gram Directive #300-16. If, however, there is reasonable cause to believe that airborne asbestos concentrations exceed 0.1 f/cc greater than five microns on an 8-hour TWA basis, or have peak levels above 0.5 f/cc greater than five microns based on 15-minute sample periods, then the site should be monitored for airborne asbestos, and appropriate action taken as required by applicable safety or health laws and/or regulations. Products and Operations DMA is furnished in flake form. Operations to which these work practices apply include: Shipping. Receiving. Handling. Warehousing, and Storage Additions of DMA to the mud Handling of empty sacks Disposing of empty sacks Disposing of mud Shipping, Receiving, Handling. Warehousing. And Storage DMA is furnished in loose or palletized sacks. (With palletized DMA, the pallets are sometimes shrink wrapped). The sealed, unopen ed sacks should be handled by normal warehouse practices. Precautions must be taken if a sack is broken, torn or punctured. The sack should be sealed with heavy duty tap or placed in a slip-over sack (over sized, open mouthed bag) to prever spillage. The slip-over sack should b securely sealed, preferably by a twis wire. Any spillage should be cleanei up with a vacuum sweeper equippet with a disposable bag. Unless add: tional protection is required under ap plicable federal or other regulations a certified, reusable or single use ai: purifying respirator should be won by the person cleaning up. Do no blow material with compressed air nor dry sweep. The material in broker or damaged sacks should be used first In storing DMA it is recommended that it be stacked no more than 10 sacks high. Additions of DMA to the Mud DMA should be added to the mud in the same manner as other dry mud ad ditives. The DMA should be added directly to the mud system, preferably by emptying the bag at a uniform rate into the hopper of a cone type jet mix er (eductor system). Other systems in use are also suitable for the addition of DMA. such as an eductor with suction hose at tached to withdraw the DMA directly from the bag. or from a drum into which several bags have been emp tied. (Figure 1). Care should be used in pouring the DMA into another con tainer to reduce theamount of "fines" generated when air is displaced from the receiving hopper or drum. In adding DMA to the mud. it is a recommended practice to position oneself so that any air currents pre sent are moving from the individual's back toward the receiving container, rather than blowing into the face. A light weight streamer or "air sock" above the hopper may be used to determine wind direction. Disposing of Empty Sacks Unless an adequate precipitator is attached to the incinerator, onshore burial or incineration is the preferred method of disposing of empty DMA sacks from offshore sites. Do not burn DMA sacks without a precipitator. The empty sacks should be ac cumulated in sealed impermeable bags until a sufficient number is on hand to require burning or burial. It is preferable to bury empty DMA sacks onshore. An incinerator with an adequate precipitator can be used. Do not burn DMA sacks without a precipitator. Disposing of Mud When a well is finished, there is usually little or no DMA left in the mud. Any accepted method of storing the mud for reuse or disposing of it can be used. $ Circle 42 Clay particles are big trouble when they swell and lodge in rock pores and damage your producing formation. Protect your well with the combination of _Fln^nl* and Drispac' additives in your drilling fluid. The Flosal and Drispac containing fluids inhibit clay swelling, minimize formation blockage, have low water loss, plus excellent carrying capacity to clean cuttings and debris from the hole. These additives mix easily with water of any salinity and are economical and simple. The Flosal and Drispac additives are also outstanding for use in coring your EOR wells. Talk to your mud company engineer or contact: Technical Services Division, Drilling Specichies Company, 309 Short St., Bartlesville, Oklahoma 74004. Phone 918 661-5333. ,, "We're the Drispac people." fa 0 ^5^26 . DRILLING SPECIALTIES COMPANY