Document jNy3dKdQ6QnJDn6Q2Q1xkmwZZ

Interoffice iWemeranduni TO (Name and Location) J. Chervenka - Dallas FROM (Name <nd Location) M. A. John - Pampa OATE 2-27-81 REFERENCE NO. MAJ-118-81 PAMPA RFA 331-571 PLANT BREATHING AIR SYSTEM -MOB- Capital Expense Total $321,000 30,000 $351,000 Pampa Plant requests $351,000 to assure that all users of breathing air are supplied with breathing quality air that meets OSHA requirements. Presently, the breathing air system consists of tie-ins to the instrument/ service air system with backpacks being provided for emergency use. The instrument/service air system is also used as a source for various.process uses. On several occasions, process chemicals have been identified in the system. The breathing air system having instrument/service air as its supply is not safe, in our opinion, and is in direct violation of OSHA standards due to process interconnections, lack of proper supply filtering and no continuous contaminant monitoring. The proposed facilities will provide a separate breathing air system to include purification of compressed air, plant wide distribution network and in-unit distribution. Total carbon and carbon monoxide monitors will be part of the new system as well as marked lines and strict conformance to the plant connection standard. Alarms will be provided to warn of any con dition causing loss of air quality or quantity. The new facilities will ensure that all breathing air is safe and will meet OSHA requirements. Funds for this project are included in the 1981 Capital Plan ($731M) and Expense Budget. This project will not have any impact on Plant Energy Consumption and will not require additional headcount. Facilities will be operational 10 months after approval and will be closed 13 months after approval. MAJ :mb 010519 "YlUcST FCH APPRCr'IUAribfr V, `*ii**'*eiT. ^ni~i*& IV. Timing This project will be operational 10 months after funds approval and closed 13 months after approval. V. Engineering & Construction Engineering and construction will be done by the Pampa Engineering/Maintenance Department, utilizing contract draftsmen and labor as required. VI. Patents No patent infringement or patentable items are involved. VII. Headcount No change in headcount will result from this project. 456* < >2 6T * ESTIMATE SHEET A TITLE Plant Breathing Air System ESTIMATE NO 331-571 WO LOCATION ITEM 1 Equipment DESCRIPTION DATE DEPT. 2-23-81 Engr./Maint. CAPITAL MATERIAL LABOR Monitors and Purifiers 35,000 - 6,000 SHEET 1 OF 1 expense MATERIAL LABOf 2 Piping Headers, Manifolds and Supports 55,600 96,100 3 Instrumentation Alarms and controllers 7,500 7,200 4 Electrical Equipment and Building 5,000 7,000 5 Painting and Marking 6 Building 4,000 10,000 7,000 7,000 Direct Material & Labor Engineering Construction Overhead Escalation Contingency 114,100 133,300 22,000 30,000 13,200 11,400 14,000 13,000 Total Material and Labor Total Capital and Expense Total Project APPROVED 163,300 157,700 30,000 321,000 30,000 351,000 - U1 DATE ~ OCN 2Ji COMPARISON OF ALTERNATIVES FINANCIAL COMPARISON OP ALTERNATIVES TOTAL INVESTMENT LONG TERM OPERATING INCOME DCF RATE EXTRA INVESTMENT ABOVE NEXT LOWER ALTERNATIVE INCREASEADECREASEIIN LONG TERM AVERAGE OPERATING INCOME AFTER TAX OVER NEXT LOWER ALTERNATIVE DCF RATE ON EXTRA INVESTMENT PROPOSED * 351,000 s s s * ss si X DESCRIPTION OF ALTERNATIVES ALT. n ALT. I * 711,000 i X t t X Alternate it 1 The funds noted ($711,000) would provide a totally separate system to include air compressors and purifiers as well as a high pressure back-up and bottle filling compressor. The proposed alternate will fulfill all existing OSHA requirements and plant considerations. Notes: 1) - All Chemical Co. plants were canvassed and information obtained as to known OSHA violations, design requirements, and current practices. Because of their limited usage compared to ours. Bay City and Clear Lake can and do use bottled air. Bishop is currently reviewing their system. * 2) Bottled air alternate was considered for use at Pampa and was found to be far in excess of the $711 M considered in Alternate I. This is due to a combination of usage rates and availability to Pampa. 3) Portable compressors for localized use were also considered and discounted due to reliability, $'s required for turnaround sizing, maintenance requirements and service contaminants monitoring. -010523 VtRONMENTAL CONTROL DATA flP A NO, 331-571 PLANT Pampa Ol VISION Chemical AMOUNT OF ENVIRONMENTAL CONTROL EXPENDITURE IN PROJECT CAPITAL EXPENDITURE | PROJECT EXPENSE | TOTAL COST AMOUNT loocru total capital AMOUNT 1000's! % TOTAL EXPENSE AMOUNT (COO* l) K total Capital A NO gXPSMSc ( None UST ANO SUB TOTAL BY MATERIAL controlled None MAJOR ITEMS OF ENVIRONMENTAL CONTROL EQUIPMENT ITEM CAPITAL IOOO'iI EXPENSE IQOO'jl None total, cost (OOO-Jl v. TOTAL, CAPI tav_ A,' r XPENSc TOTAL EXPENDITURE BRIEF DESCRIPTION OF THE PROBLEM. TYPE OF TREATMENT TO BE USSO ANO THE ANTICIPATED QUANTITATIVE RESULTS 010524 A >a < o Xm 2 o >r vt r> rr nm 2m 9O < oz 3o n& o 2 X3 ft (CDD 3 rr no CO2 T3C3 rr HO* 3 zo > > s 5* mm 1 -t*O< *oo i/% I1MKK IVIM I t n l H L O M IM U C lU C m j I SOURCE SUMMARY INSTRUCTIONS ON RACK HFA N O ' ~ ~ ~ c o m p a n y _____Chemical 2-23-81 DATE ___________________ 010525