Document gb3Gkb6nNBrdbkmMmdgzQZkvQ

THE BUNKER HILL COMPANY A SUBSIDIARY OF GULF RFSOURCES S CHEMICAL CORPORATION THE OLD NATIONAL BANK BUILDING SPOKANE. WASHINGTON 99201 (509) B36-31T7 September 24, 1969 The Sherwin-Williams Co. 101 Prospect Avenue, N .W . Cleveland, Ohio 44101 Attention: Dr. Wm. A. Bittenbender, General Manager, Auxiliaries - Chemical.. Zinc Oxide Baghouse Fume Contract Dated 10/I4/&3 Gentlemen: It is agreed that this amendment shall supersede and nullify all other amendments approved after the execution of the above contract. In accordance with understandings reached at our September 17, 1969 discussions at Kellogg, Idaho, it is agreed that Paragraphs I - MATERIAL AND QUANTITY, II - DELIVERY, 111 - PURCHASE PRICE, IV - QUOTATIONS, and,XII - DURATION of the above contract shall read as follows: ' I - MATERIAL AND QUANTITY: Seller agrees to sell and Buyer agrees to purchase the Seller's monthly production of baghouse fume in excess of the amounts thereof retained or diverted by the Seller pursuant to the provisions of Paragraph VI hereof; said material to contain a total zinc and lead content of approximately 75%. Buyer's obligation to buy shall not exceed 25,000 short dry tons during the twelve month period January 1, 1970 through December 31, 1970, and for subsequent years the quantity of Buyer's annual obligation to buy shall be negotiated at least ninety days prior to the beginning of each ensuing year of the term hereof. II - DELIVERY: . F.O.B. cars Seller's smelter, Bradley, Idaho, regularly as produced. For accounting and administrative purposes, all changes relating to material pricing shall be applicable to all shipments consigned to Buyer at Bradley, Idaho, commencing on the effective date of said change. All shipments shall be consigned and routed in monner designated by Buyer. 0007-PMC-000000939 * / iI The Sherwin-Williams Co. 2- - September 24, 1969 III - PURCHASE PRICE: ' r\- The purchase price shall be the sum of the payments next below specified: A. Zinc: Payment shall be made for 100% of the contained zinc at 50% of the East St. Louis quotation for Prime Western Zinc, as published in Metals Week . B. Lead: Payment shall be made for 100% of the contained lead at 25% of * ` the St. Louis quotation for common lead, as published in Metals Week. I** C. Premium Payments: * i: 1 . There shall be a premium payment of $20.00 per short dry ton for all tonnages which do not exceed the maximums specified below: Lead Iron Copper Acid Insol . Sitica Chlorine ' Tin Arsenic /' 10.0 % " 0.035% 0.003% 0.10 % 0.15 % 0.15 % 0.30 % If, in any given month, the tonnage qualifying for the premium payment 0 specified in this Item (1) equals 60% or 1200 tons, whichever is the smaller amount, of the tonnage delivered, then all of the tonnage delivered in that month shall qualify for the $20.00 per ton premium. 2. There shall be a premium payment of $16.00 per short dry ton for & all tonnages which do not exceed the maximums specified below: V.'- Lead 10.0 % Iron 0.035% V Copper 0.0035% Acid Insol. Silica 0.10 % Chlorine 0.15 % *.AV> Tin 0.15 % Arsenic 0.30 % 13' ir If, in any given month, the tonnage qualifying for the premium payment specified in this Item (2) equals 50% or 1000 tons, whichever is the smaller amount, of the tonnage delivered, then all of the tonnage delivered in that month shall qualify for the $16.00 per ton premium. 0007-PMC-000000940 The Sherwin-Williams Co. -3- September 24, 1969 3 . In addition to t'he premiums specified in Items (1) and (2) above, a special premium of $2 .00 per short dry ton shall apply to all tonnages delivered in a given month which do not exceed the maximums specified below: Lead Iron Copper Acid Insol. Silica Chlorine Tin Arsenic 10.0 % 0.035 % 0.0025% 0.10 % 0.15 % 0.15 % 0.30 /S 4. The premium payments specified in Items (]), (2) and (3) above are to cover deliveries during the period January f, 1970 through December 31, 1970. The premium payments for each succeeding year shall be negotiated by October 1 of the preceding year. D. For all other tonnages delivered not qualifying under III - C, Items (1), (2) and (3) above, a payment of $10.00 per short dry ton shall be made in addition to the zinc and leqd payments specified in III - A and III - B of this amendment. ,/ IV - QUOTATIONS: * Quotations shall be those for prime western zinc and common lead, f.o.b. St. Louis, as published in Metals Week, for the date of delivery of shipments at Seller's plant. Should a shipment be delivered on a day when no Metals Week quotations are published, then the next succeeding day on which Metals Week does publish quotations shall govern. XII - DURATION: This'agreement shall be in effect for the period from January 1, 1964, to and including December 31, 1969, and from year to year thereafter unless either party, at least one year prior to the January 1 on which any yearly period is to commence, gives written notice of cancellation to the other, in which event this agreement shall terminate at midnight on December 31 of the year following that in which such notice was given. 0007-PMC-000000941 The Sherwin-WIIIiams Co. -4- September 24, 1969 If the foregoing correctly sets forth our understanding with you, please signify your approval by signing the enclosed copy of this letter and returning for our files. Very truly yours, THE BUNKER HILL COMPANY GAL/c I ACCEPTED:__________________ THE SHERWIN-WILLIAMS CO. By , 1969 :,rv' X Vic# President By. 0007-PMC-000000942 In t e r -Of f ic e Le t t e r FOR #30 Coffeyville MR R. L. Capps REFER TO LETTER OF FROM Cleveland OFFICE OFFICE DATE subj ec t October 14, 1969 (Diet'd. 10/13) Bunker Hill Contract DICTATED 8Y 1 3938 (3X> DEFT. Attached herewith is a copy of a supplement to our Zinc Oxide Baghouse Fume contract -- to cover 1970 calendar year operations as we discussed in Kellogg when you. Bill Bittenbender and I visited there on September 17th. We will consider the attached as your copy of the contract, and, if there is any adjustment, I will let you know. I do not think that the last paragraph in Section III - C - 2 is written correctly. The wording "all" confuses me, and maybe all that is necessary is "of the remainder". It would then be my thinking that if 50% or 1,000 tons of material fall under the specifications in this Section of the contract, then all of the material would be priced at $16 per ton, except that which is priced at $20 per ton or at $22 per ton. '* * Bill Bittenbender and I have been discussing this, and maybe I am a little fussier on contracts than those that do not work on them about every day -- so we decided that I would write you to just see how you would interpret this contract of September 24th on paying Invoices at Coffeyville. A copy of this is going to Wayne Livingston. Also, under paragraph XII -- Duration, I would think the state ment ought to read that this agreement covers a period from January 1, 1964 to and including December 31, 1970 -- etc. as written. I note that the contract last year referred to December 31, 1968. In view of the fact that the September 24th letter definitely covers the 1970 calendar year, it seems to me that we have an agree ment through 1970. As this procurement and contract are new with me -- I do not want to return it to Bunker Hill signed until it is clear in our mind8. RFHennig:] cc: WAL Attachment 0007-PMC-000000943 N15567.01 In t e r -Of f ic e Le t t e r FOR #30 Coffeyville MR. R. L. Capps 10/14/69REFER TO LETTER OF FROM Cleveland DATE SUBJECT October 16, 1969 Bunker Hill Contract RFH 13958 (3X> DEPT. Through misunderstanding, ay secretary sent you an original copy of a tissue of this contract -- I would like to have that returned. * Attached herewith is a photostat copy of the contract for you, and one is attached to Wayne's copy. ". . I was out of town yesterday, and thus did not read my letter before it was sent -- it was typed exactly as 1 dictated it, but maybe 1 could have-added in the third paragraph -- "or all not qualified under items (1) and (3)". My interpretation of payment'is -- if 60% or 1,200 tons, whichever is the smaller amount in any given month, is equal or better than the specifications in C-l, than we pay $20 per ton for everything shipped in the month, plus $2 per ton for any shipment that has a Copper content of .0025 or less. If 50% or 1,000 tons in a given month falls within specification C-2, then anything from that specification down would be $16 per ton; and we would pay $20 per ton for anything falling under C-l and $22 per ton for anything under C-3. Is this your understanding? / RFHennig ;cp Attachment cc: WAL (w/attach) r 0007-PMC-000000944 N15567.02