Document jg6j3kQM9wyR71KZmMYrpkeb9

ANNUAL REPORT TO THE MEMBERSHIP March 15, 1978 r \ ANNUAL REPORT TO THE MEMBERSHIP March 15, 1978 /------------------------ sum Association SGP 0012259 REPORT OF THE SECRETARY TO THE MEMBERSHIP March 15, 1978 It has been an extremely busy six months for all those participating in Association activities. The staff as well as company members have tackled new projects as directed by the membership at the semiannual meeting last fall, in addition to continuing normal responsibilities for the progress of our in dustry. Of particular mention, we welcomed representatives of the three new member companies into each of our standing com mittees and we are extremely gratified to see them not only attend but contribute with an expertise and practical experience which is so important in our committee action. Without exception, our committee chairmen have re ported increased attendance at our committee meetings. This is not only due to additional people from our new member companies, but it seems that older member companies have returned to the policy of having their principal representatives attend each and every committee meeting, rather than having one person double up for some of them. Our newly formed Metric Committee met for the first time during this last period and was most successful in estab lishing a preliminary track on which to run, since metric con SGP 0012260 2 version in the United States appears inevitable. For some three years the Association has kept the membership advised of metri cation activities and informed other appropriate industries of the limits of gypsum wallboard production parameters. We have, and will continue to have, excellent representation in the tech nical and standard-wri ting organizations which will eventually decide metric units. The important thing is that through all of our preparation thus far, our membership will be ready for metrication with a well-planned and prepared timetable when it becomes necessary. Of special note among committee activities was the 100th Anniversary meeting of our Technical Committee. The Gypsum Association was originally organized because of the necessity of an industry technical committee to prepare recom mended standards and specifications for our products and assem blies. We are extremely proud of this committee and can point to many successful accomplishments through almost fifty years of . its activity which have added so much to the progress of our industry. A commemorative 100th Anniversary banquet was held at the Technical Committee meeting where several honored guests spoke of the various highlights of committee activities which took place during their tenure. The one outstanding accomplishment which almost every one mentioned was the original idea within the committee to publish SGP 0012261 -3- a ,,biblefr of fire resistive assemblies for the use of all consumers and specifiers of gypsum products. Through the years, the resulting Fire Resistance Design Manual has emerged as just the entity that was originally envisioned by the Technical Com mittee. No other industry has such a publication and to say that we are the envy of other building material industries is an understatement. Our hats off to all of those whose hard work through the years has made this accomplishment possible. The revitalization of the Traffic Committee should also be noted. The last meeting of this committee was attended by more member companies than have attended during the last several years. The following Traffic report will attest to the importance of the function of this committee. The Promotional Committee has expanded its trade factor liaison responsibility. Until recently, the wall and ceiling contractors were the only group where an industry liaison was conducted. Now, in addition, we are actively pursuing programs with the ceiling and interior systems con tractors, Manufactured Housing Institute and retail lumber dealers. While the operation of our Washington office is not yet one year old, we believe that we have ironed out the kinks SGP 0012262 -k- of a new operation and have settled down to a successful administration. Without exception, our standing committees have taken advantage of our Washington coverage and we believe the results have been noted during the last round of meetings. It appears that by the time of the annual meeting, each com mittee will approve of our proposed next step of having a Gypsum Association Oay in Washington to further educate our member company personnel and the Association staff in accomplish ing further goals with the federal government. This proposed program will be outlined in detail at our annual meeting, but we are making a preliminary solicitation of our member com panies to have at least one person attend the day-long program to be held in Hay. We will organize the program so that we have at least one person present who is completely knowledgeable in each area of our committee activities which is concerned with federal legislation or regulations. As we proceed with our plans, we will request special attendance from various member companies to make sure we have covered all of our bases. During the next two months, we ask that you give par ticular attention to the Legislative Summary report so that each member company can choose their most appropriate people to attend and pursue legislation of primary importance to the individual company. SGP 0012263 -5- It has been recommended that the Association concentrate its efforts to oppose any legislation which would eliminate or reduce percentage depletion for gypsum. At this writing, there is no such legislation in the hopper and the subject is not pres* ently on the agenda of either the Senate Finance Committee or the House Ways and Means Committee. However, our proposed plan is to alert our Tax Committee (which has not met for several years) for proper action, including a meeting when such legislation appears, probably late 1978 or 1979. As many industry personnel know, the enactment of legis lation for gypsum to receive a percentage depletion allowance was a primary accomplishment of the Gypsum Association and the opposi tion to legislation through the years to eliminate or reduce per centage depletion has been extremely successful. We would like to keep it that way. During the past six months, the Gypsum Association has lost two close friends. Mr. C. C. Gramer passed away after a long illness which had been in check, but late last fall become terminal. Cliff Gramer had been the principal representative of United States Gypsum Company in the Association for several years and had been a dedicated and most important participant in Associa tion activities. Mr. C. E. Abbey had been a member of the Gypsum Associa tion staff in the late 19^0's and had a distinguished career with SGP 0012264 -6- several gypsum companies since that time, actively representing those companies in Association activities. After retirement from The Flintkote Company last summer, he joined the Association staff as a consultant and representative at the National Bureau of Standards. Both of these very fine gentlemen will be sorely missed. Our most heartfelt sympathy to the families of both Chester and Cliff. At the semiannual meeting last fall, the membership directed that we reduce the reporting time for reporting produc tion and sales from the 25th to the 20th of the following month. This has been mildly successful. Each month all but one or two of the companies (not the same one or two) have succeeded. We urge each company to periodically check to attempt to streamline this procedure. Of special note was the collection of an industry gypsum wallboard capacity figure at the beginning of 1978 of 17 billion sq. ft. This increase of one-half billion sq. ft. in just one year was of interest throughout the construction industry. The financial results of our budget year 1977_78 is in cluded in the Directors' copies of this report. SGP 0012265 -7- The proposed budget for 1978-79 is listed, including the recommended budget expenditures for each of our standing committees. It is a very realistic budget and results from serious and business-like recommendations of each committee. Because of the increased tonnage.of calcined gypsum during the calendar year 1977. we can promulgate the recommended Association programs without an increase in the rate of assess ment for the next year. Hence, it is recommended that the mem bership assess itself 2-1/2$ per ton, based on 1977 tonnage, for the first half of the next budget year, due and payable April 15, 1978. As recommended by the Board of Directors, the following sites have been chosen for our semiannual meetings during the month of October for the next four years: 1978 Litchfield, Arizona 1979 1980 Point Clear, Alabama Colorado Springs,' Colorado 1981 Ponte Vedra, Florida Respectfully submitte i. Victor Abnee, JrC Secretary SGP 0012266 REPORT OF THE SAFETY COMMITTEE TO THE MEMBERSHIP March 15, 1978 The Safety Committee met on February I, 1978 at Brunswick, Georgia. A safety seminar was held for area plant supervisors on February 2, 1978. The following will highlight current concerns, activities and programs of the Safety Committee: INDUSTRY ACCIDENT EXPERIENCE During 1977> the Association Safety Contest utilized the OSHA record-keeping system as the basis for industry statistics. An incidence rate of 8.08 was reported for 1977 based on 821 re portable cases. A complete breakdown appears at the end of this report for your further review. The Harris Trust &> Savings Bank, Chicago, Illinois, con tinues to collect industry safety statistics under the new contest so as to maintain the accuracy and legitimacy of this important industry program. FEDERAL SAFETY LEGISLATION In the legislative area, the Federal Mine Safety and Health Act was signed into law November 9, 1977- The final law became effective March 9, 1978 and placed mine safety enforcement under the Department of Labor in the Mine Safety and Health Admin istration (MSHA). The law repeals the Federal Metal and Nonmetal lie SGP 0012267 -2- Mine Safety Act of 1966 and places all mining under the provisions of the present Coal Mine Safety Act. Four inspections of underground mines and two inspections of surface operations are mandated annually. A maximum penalty of $10,000 can be assessed for each violation with a $1,000 per day fine for violations not abated during the prescribed period. State enforcement plans are no longer effective although federal funds will be made available for state mine safety training activities. Mandatory training of new and existing surface and underground miners is required at the operators' expense. New miners must have required training before job assignment. The Department of Health, Education and Welfare will also be conducting health inspections under the law. Separate advisory committees are to be established for "health" and "safety" research activities. The Advisory Committee to review current MESA "advisory standards" to determine if they should be continued under the new law as mandatory or eliminated, held their first meetings the week of March 6, 1978. The Association plans to monitor all advisory committee meetings. Members of this Advisory Committee are as follows: Chairman Nicholas Tarsonsky Formerly with ANSI (7 nonmining interest members) Dr. Arthur Furst Dean of Graduate School University of California Al Blackman John Gurry Oscar Willingham Lois Strayhorn Dr. Steve Boscoff Safety Engineer Retired teacher Consultant (State of Ma i ne) Harvard Columbia School of Mines SGP 0012268 (3 Mine Management Members) (3 Mine Labor Members) -3- Dorse Seiple A1 Daniels Frank Zimmerman Don Spatz Don Chestnut LaVerne Melton Standard Slag Company DeVal Copper Potash National Gypsum Company Cement Lime & Gypsum Workers Steel Workers Union (Nevada) Steel Workers Union (formerly at Sunshine Mine) The Safety Committee recommends several informational type Association programs intended to apprise gypsum operations of their responsibilities under the mine safety law. These recommended programs include: 1. Preparation of a slide/script or cassette program covering: the major provisions of the law, mandatory training and other important provisions as developed. The first such program covering the major provisions of the law is already in place. Other programs are to be developed during the 1978-9 budget year. 2. Conducting a one-day training seminar for industry operations to include a MSHA briefing session on the mine safety law. The seminar would be held in a central U.S. location shortly following implementation of MSHA enforcement activities'so as to provide a better understanding of how the law is working and to cover mandatory training provisions.3 3. Modification of the existing Association safety seminar program to incorporate, on an ongoing basis, educational programs on the mine safety law, its provisions and specific rerequirements. SGP 0012269 -4- A complete report on this most important committee activity, including required budgetary amounts, will be contained in my oral report at the membership meeting. The OSHA `'common sense'1 program appears to be progressing. Under this program OSHA has proposed to revoke 1700 non-essential safety standards. The Safety Committee forwarded a letter to OSHA Secretary Bingham complimenting her on the standards revocation and encouraging further review of the OSHA standards for this purpose. in a related OSHA activity called the "New Directions in Training and Education" program, OSHA has announced a federally funded grant program for labor unions and trade associations for development of safety training programs for small businesses. The Safety Committee is currently exploring the possibility of Associa tion participation in this program for.contractors working with member companies. The Chairman and other members of the Safety Committee plan to meet with the Promotional Committee at their April 11, 1978 meeting to explore this program further. A report covering this activity and any forthcoming recommendations will be made at the annual meeting. The Association continues to monitor the OSHA noise and silica standard proposals which are expected to be promulgated later this year. OSHA has also proposed a policy for identification and control of industrial cancer-causing substances which we are closely monitoring. SGP 0012270 -8- REPORT OF GYPSUM ASSOCIATION SAFETY CAMPAIGN FOR THE TWELVE-MONTH PERIOD ENDING DECEMBER 31.1977 Presidential All establishments with an exposure for the twelve-month period of more than 339,000 man-hours: Plants Incidence Rate * United States Gypsum Company, Shoals, Indiana * United States Gypsum Company, Gypsum, Ohio United States Gypsum Company, Sweetwater, Texas United States Gypsum Company, Fort Dodge, Iowa United States Gypsum Company, Jacksonville, Florida National Gypsum Company, Fort Dodge, Iowa National Gypsum Company, Savannah, Georgia National Gypsum Company, National City, Michigan United States Gypsum Company, Plaster City, California United States Gypsum Company, Stony Point, New York United States Gypsum Company, East Chicago, Indiana National Gypsum Company, Shoals, Indiana Georgia Pacific Corporation, Acme, Texas Georgia Pacific Corporation, Fort Dodge, Iowa * National Gypsum Company, Bronx, New York National Gypsum Company, Baltimore, Maryland Georgia Pacific Corporation, Brunswick, Georgia * National Gypsum Company, Rotan, Texas Flintkote Company, Las Vegas, Nevada 0.00 0.00 0.40 1.14 2.00 2.06 2.63 2.78 2.90 3.55 4.71 6.74 7.35 7.57 9.21 12.48 13.07 14.95 39.74 Citation All establishments with an exposure for the twelve-month period of more than 255,000 but less than 339,000 man-hours: * United States Gypsum Company, Norfolk, Virginia * United States Gypsum Company, Saltvxlle, Virginia * United States Gypsum Company, Baltimore, Maryland United States Gypsum Company, Oakfield, New York Temple Gypsum Company, West Memphis, Arkansas * United States Gypsum Company, Sperry, Iowa United States Gypsum Company, River Rouge, Michigan National Gypsum Company, Medicine Lodge, Kansas The Celotex Corporation, Port Clinton, Ohio * The Flintkote Company, Sweetwater, Texas Georgia Pacific Corporation, Blue Rapids, Kansas National Gypsum Company, Clarence Center, New York * . National Gypsum Company, Burlington, New Jersey * National Gypsum Company, Long Beach, California The Celotex Corporation, Fort Dodge, Iowa Georgia Pacific Corporation, Wilmington, Delaware National Gypsum Company, Waukegan, Illinois Georgia Pacific Corporation, Grand Rapids, Michigan 0.65 1.21 1.24 1.25 1.52 2.96 3.28 4.73 4.85 5.61 7.51 7.87 12.87 14.45 17.93 21.47 26.51 26.88 SGP 0012271 - 9- Triumph All establishments with an exposure for the twelve-month period of more than 214,000 but less than 255,000 man-hours: Plants Incidence Rate * National Gypsum Company, Tampa, Florida * The Flintkote Company, Savannah, Georgia United States Gypsum Company, Charlestown, Massachusetts * The Celotex Corporation, Cody, Wyoming United States Gypsum Company, Alabaster, Michigan The Flintkote Company, Camden, New Jersey * United States Gypsum Company, Empire, Nevada * United States Gypsum Company, Southard, Oklahoma Grand Rapids Gypsum Company, Grand Rapids, Michigan National Gypsum Company, Westwago, Louisiana National Gypsum Company, Portsmouth, New Hampshire Georgia Pacific Corporation, Sigurd, Utah Georgia Pacific Corporation, Buchanan, New York Kaiser Cement & Gypsum Company, Antioch, California National Gypsum Company, Lorain,. Ohio The Celotex Corporation, Hamlin, Texas Pabco Gypsum Company, Las Vegas, Nevada Republic Gypsum Company, Dallas, Texas 0.00 0.00 0.87 0.92 0.93 1.66 1.71 3.22 4.92 8.66 9.16 14.95 15.50 16.03 16.54 20.48 21.70 25.84 Peerless All establishments with an exposure for the twelve-month period of less than 214,000 man-hours: Plants * United States Gypsum Company, Philadelphia,Pennsylvania * United States Gypsum Company, New Orleans, Louisiana * United States Gypsum Company, Santa Fe Springs, Cal. United States Gypsum Company, Sigurd, Utah * United States Gypsum Company, Lewistown, Montana * United States Gypsum Company, Galena Park, Texas The Flintkote Company, Fremont, California The Celotex Corporation, Jacksonville, Florida * National Gypsum Company, Richmond, California Kaiser Cement & Gypsum Company, Seattle, Washington Kaiser Cement & Gypsum Company, Long Beach, California The Flintkote Company, Florence, Colorado Western Gypsum Company, Santa Fe, New Mexico Georgia Pacific Corporation, Lovell, Wyoming National Gypsum Company, Phoenix, Arizona Pabco Gypsum Company, Newark, California 0.00 0.00 1.55 2.90 3.95 4.03 5.40 7.54 7.59 8.46 9.71 12.19 12.63 27.53 40.01 44.79 * Indicates zero cases involving days away from work. SGP 0012272 GYPSUM ASSOCIATION SAFETY CAMPAIGN FREQUENCY RATE FIGURES BY CLASSES FOR TWELVE MONTHS - 1977 Total Number Man-Hours Total Number Cases Incident Rate Presidential Citation Triumph Peerless 8,202,633 5,323,669 4,213,063 2,571,470 264 6.44 230 8.64 185 8.78 142 11.04 20,310,835 821 8.08 PART II GYPSUM ASSOCIATION SAFETY CAMPAIGN FREQUENCY RATE FIGURES BY DEPARTMENT FOR TWELVE MONTHS - 1977 Total Number Man-Hours Total Number Cases Mine Quarry Mill Board Block Warehousing Maintenance Miscellaneous 498,886 756,076 2,270,240 7,817,002 31,502 2,198,555 3,603,705 3,134,869 35 19 69 353 1 97 188 59 20,310,835 821 Per Cent of Man-Hours Worked in Each Classification Total Number of Hours Worked: Mine Quarry Mill Board Block Warehousing ' Maintenance Miscellaneous 2.46 3.72 11.18 38.49 .16 10.82 17.74 15.43 100.00 Per Cent of Accidents in Each Classification to the Total Number of Accidents Reported: Mine Quarry Mill Board Block Warehousing Maintenance Miscellaneous 4.26 2.31 8.40 43.00 .12 11.82 22.90 7.19 100.00 SGP 0012273 REPORT OF THE TECHNICAL COMMITTEE TO THE MEMBERSHIP March 15, 1978 The one hundredth regular meeting of the Technical Com mittee was held February 22-23, 1978, in San Antonio, Texas. In attendance were ten representatives from eight member companies, four staff members and legal counsel. The committee was honored by the presence of several guests formerly associated with the committee, L. H. Yeager, G. 8. Kirk and C. H. Yuill. The meeting was dedicated to the memory of Mr. C. E. Abbey who devoted his professional life, until his untimely death, to the interests and goals of the gypsum industry. SECTION 1 - PRODUCTS Currently, there is no reference to gypsum in the title and scope of ASTM Committee C-ll on Ceilings and Walls which was C-11 on Gypsum until 197**> We recommend that the Gypsum Associa tion representative on C-ll make every effort to broaden the title and scope to include standards for gypsum in other than ceilings and walls, such as gypsum concrete and agricultural and industrial gypsum products. The differences relating to wallboard thicknesses and framing spacings on ceilings to receive water base spray textures SGP 0012274 -2- in Committee C-ll's proposed application standard have not been resolved. In an attempt to provide a possible solution, the Technical Committee voted on a motion to recommend the addition of a statement to C 840 that sag of water base spray textured ceilings is the responsibility of the drywall applicator. The vote was inconclusive with four affirmatives, three negatives and one abstention. A special task group will prepare for a proposed joint meeting of Gypsum Association and iaWCC/GDCI Technical Committee representatives to discuss problems under lying producers' and users' differences regarding this problem. We recommend that the Association make every effort to gain recog nition of GA 216 as a reference standard for gypsum board appli cation by federal agencies, contractor groups and codes. The Association was successful in gaining acceptance of gypsum drywall partitions as an alternate to masonry in stair well enclosures and corridors in New York City, based on data developed by tbe Technical Committee confirming equivalency with concrete block in resistance to vandalism impact and passage of smoke and gases. The standing Metric Committee has requested the Tech nical Committee evaluate the potential technical merits of pro ducing 13 mm and 16 mm regular and type X boards in lieu of 12.7 mm (1/2 in.) and 15.9 (5/8 in.) thicknesses. SGP 0012275 -3- The 5/8 in. type X gypsum sheathing racking test program to gain approval for use without corner bracing was successful. Results are being submitted to FHA and building codes. Foil-backed gypsum board is commonly called "insulating gypsum board." A foil backing adds effective insulation to an assembly only when it faces an enclosed air space at least 3/4 in. in depth. The Technical Committee recommends that the term "In sulating gypsum board" be changed to "foil-backed gypsum board" wherever referenced in ASTM and Gypsum Association standards. In sulating values for gypsum boards and foil-faced air spaces will continue to be published due to the need for these values in deter mining the total insulating value of a wall or ceiling assembly. The Technical Committee accepted the recommendation of a special task group that either 1/2 in. type X wallboard complying with ASTM C 36 or 1/2 in. type X backerboard complying with ASTM C 442 are acceptable substitutes for the special board specified in the ASTM C 707 standard for gypsum board substrate for floor or roof assemblies. The committee requests the Board of Directors' approval of this recommendation and of publication of a special recommendation to this effect by the Promotional Committee. SECTION II - SYSTEMS The joint Gypsum Association-Tile Council of America water-resistant gypsum backerboard shower stall tests to resolve SGP 0012276 -4- discrepancies in Gypsum Association and tile industry application recommendations are underway and should be completed in August 1978. The Manufactured Housing Institute has requested Gypsum Association joint participation in underwriting a study by Firepro, Inc. of fire safety in mobile homes. The Hardwood Plywood Manu facturers Association is considering participation. The $24,000 cost of the study is to be divided among the sponsors in the form of grants. It was the unanimous opinion of the Technical Committee that this study would be of insufficient technical value to recom mend participation, but the Board of Directors may wish to consider a more limited participation from a public relations standpoint, particularly with MHI. A member company has conducted a statistical survey of fifty mobile home producers on use of gypsum board, and their re sults indicate a similar survey by other member companies would be of value to the industry in convincing HUD of the extent of use and favorable performance of gypsum board in mobile homes over the past 14 years. The Technical Committee voted to recommend that such a survey be conducted. Since then, the Association has been informed that the fifty producers already surveyed will not be identified. Since such a large number of producers already have been surveyed and, undoubtedly, would not welcome being resurveyed, a method of preventing duplication should be worked out before proceeding further. ( SGP 0012277 -5- SECTION HI - TESTING The small scale shear tests at Underwriters' Laboratories to provide data for use in selection of the 5/16 in. board to be used in full scale ceiling panel shear tests have been completed. Industry shear values for ceilings will be based on the full scale tests. The committee requests Board of Directors' approval of a $7000 expenditure for these tests. A permanent testing task group was established in 1973 to recommend fire and sound tests that should be conducted by the Gypsum Association. The group has recommended, and our committee will request, Board of Directors' approval of expenditures for the following: 1. A two-hour 50 STC wood frame gypsum wall board shear wall for seismic areas. Soynd Test - $ 900 Fire Test - $7000 2. An Underwriters' Laboratories test on a 3* x 7* elevator entrance door and frame in a 3-3/^" thick cavity shaftwall. The door, frame, hardware and shaftwall components will be described generically in the U.L. listing and report. The estimated cost is $8000. A $3500 expenditure for a joint elevator industry-Gypsum Association test was approved by the Board of Directors before NEII withdrawal from the program. SGP 0012278 -6- The total estimated cost of the above fire and sound tests and the ceiling shear tests is $23,000. The task group also recommended cooperation with the American Iron and Steel Institute in conducting a U.L. fire test on a steel roof deck-gypsum walIboard cei1ing assembly with Gypsum Association participation limited to design critique and furnishing and supervising installation of ceiling materials. Although the Technical Committee approved the recommendation, approval of the estimated $1000 expenditure will not be requested until it is definite that AISI will conduct the test. - We have approached Underwriters' Laboratories to make an engineering study on the effect of control joints on fire ratings. U.L. informed us they have insufficient data. They will advise us what data is required. GENERAL SUBJECTS A new Special Recommendation for Installation of Steel Door Frames in Steel Stud-Drywall Partitions and 1978 revised editions of both the Fire Resistance Design Manual and the Rec ommended Specifications for Application and Finishing of Gypsum Board, GA 216, have been published. The effect of use of certain insulations in gypsum lined walls and ceilings, particularly urea formaldehyde foam SGP 0012279 -7- and cellulosic insulations, is being investigated because of reported damage to the gypsum linings when they are used. We wish to acknowledge the interest and participation of new member company representatives in Technical Committee activities and to encourage their future involvement. Respectfully submitted, /TL- J. H. Crumbaugh Chairman -- /' SGP 0012280 REPORT OF THE BUILDING CODE COMMITTEE TO THE MEMBERSHIP March 15, 1978 The Building Code Committee met on February 21, 1978, in San Antonio, Texas, with representatives of seven member companies participating. In addition, staff and legal counsel were present. At the semiannual meeting in October, a general report of the activities of the Building Code Committee was given and it was emphasized that of most importance is our work with the four model codes. Again at this last meeting of the committee, we spent a considerable amount of time working with problems concerned with the model codes. Important activities discussed by the committee are being brought to your attention, and they include the following: National Building Code - American Insurance Association The present code has confusing and contradictory require ments for fire walls, and the Association should enlist the support of other interested associations to obtain desired revisions. Efforts to revise this, if successful, could then be used to reapproach the Insurance Services of New York on their restrictions on gypsum board and fire separation walls. In order to carry out this work, a generic report from Mr. A Gustaferro on breakaway clips for two story con struction will be obtained. In addition, a revision to AlA's National SGP 0012281 - 2- Building Code is to be proposed to eliminate the confusing code language that currently impedes use of gypsum in fire wall con struction. A formal presentation will also be prepared and submitted to the American Insurance Association to try to obtain reference to the Gypsum Association Fire Resistance Design Manual in the National Building Code. Basic Building Code - BOCA The code changes with relation to gypsum products are proceeding on schedule, and most actions are favorable. In addition, at the BOCA meetings in 1978. the committee recommends we attempt to present a training program to the building officials covering the use of the 1978 Fire Resistance Design Manual. Association movies 'Time to Live" and **Fi re on the Rise11 are scheduled to be shown at the June meeting. Standard Building Code - SBCCI A number of code changes have been proposed affecting gypsum board, but none of them pose a major problem to the industry. Uniform Building Code - ICBO The staff was successful in obtaining approval from ICBO to combine Reports 1628 and 1632 which will save the Association members at least $1000 to $1500 per year. In addition a 2-hour solid wallboard shaft partition consisting of four layers of l/2,r type X gypsum wallboard will be submitted to ICBO as an alternate to that presently in the code. SGP 0012282 -3- The ICBO Research Committee is considering new rules re garding minimum floor/ceiling assembly for lightweight concrete on wood framing for a minimum rating of STC 50. A special hearing on this will be held in April. Gypsum veneer plaster and veneer base will be included in the Uniform Building Code either as a reference to the ASTM stand ard or as part of the code itself. Other Regulatory Bodies Complete discussions were held concerning activities of the Federal Government, Council of American Building Officials, National Fire Protection Association, and activities of the various states, such as California, New York, Washington, Oregon, Ohio, Kentucky, New Jersey, Virginia, Pennsylvania and the County of Santa Barbara, California. With regard to the above, one major concern of the committee is the efforts of the sprinkler people to eliminate compartmentation by tradeoffs. We feel there is no technical backup to do this; and, in order to present a proper case to the three model codes, the com mittee requests that a study be made of two types of buildings, with and without sprinklers and compartmentation to determine the economic impact. As a basis for this study, the work previously done by Mr. John Crumbaugh will be used. The committee requests from the Board of Directors $2500 to carry out this program. SGP 0012283 -k- New York City As a result of the impact test study sponsored by the Associa tion, the New York City Board of Standards and Appeals has recently given approvals to two member companies for the use of their gypsum shaftwalls in stairwells. Other companies desiring approvals can now follow the same format using the Association data as a basis. Insurance Services Organization It was reported at the last meeting that the services of the National Loss Control Service Corporation had been retained and information prepared to obtain favorable insurance ratings for gypsum separation walls. Since that time, meetings with the Insurance Services Organization have been held, and we regret to report that we have been unsuccessful in obtaining any relief from this organi zation. As reported earlier, we intend to work through the American Insurance Association and the National Building Code to get them to make suitable changes which in turn can be presented to the Insurance Services Organization for consideration. GA-216 - Recommended Specification for the Application and Finishing of Gypsum Board The committee is reviewing the contents of GA-216 with relation to its being adopted by all of the building codes. Of concern is the fact that certain codes allow a minimum of 3/8 in. gypsum wallboard to be used, whereas others limit to 1/2 in. GA-216 itself covers all thicknesses from 3/8 in.up, as well as their appli cation. Some consistency will be required between the codes and SGP 0012284 this document to make it completely useful. Further discussion will be held and reported to the membership in the future. In closing, I wish to emphasize that while most of our items are of a continuing nature, they do require considerable time and effort on the part of the staff and members of the committee. Again, we wish to thank the member companies for the allocation of time and expense for their personnel to participate in this vital activi ty- Respectfully submitted, William J .^Marshal 1 Chairman SGP 0012285 REPORT OF THE TRAFFIC COMMITTEE TO THE MEMBERSHIP March 15, 1978 The Traffic Committee met on January 18, 1978 in Al buquerque, New Mexico. The very productive meeting was attended by representatives of six member companies. Several innovative procedures were adopted at the January meeting which will enable the committee to monitor more closely important transportation subjects and to respond more efficiently to areas where industry action is warranted. Each item on the meeting agenda was categorized into one of ten subject areas. Committee members were given the responsibility for moni toring one or more of these broad subject areas, and for informing the staff when significant new developments occur which may re quire committee action. This responsibility includes preparing initial drafts of industry statements, testifying on behalf of the Gypsum Association at public hearings, and submitting written status reports prior to each committee meeting. A second innovation was the development of agenda sub ject sheets by which committee members keep up to date status reports on all items on the meeting agenda. These reports, distributed in advance of every meeting, provide a summary of major provisions, references, current status report, resume of past actions taken by the Gypsum Association, recommendations SGP 0012286 - 2- for future committee action, and final disposition for ail agenda items. The reports are retained in iooseleaf binders according to agenda and filing numbers. These new procedures promise to involve more members in committee activities, assure more timely and effective com mittee response to important issues, and to speed up committee meetings by eliminating the need for including repetitive informa tion in ora 1 reports. Last fall, each committee member was invited to com plete a detailed questionnaire which examined the degree to which each individual company wished to participate in committee activities, and the direction which the committee should follow in the future. All members who completed the questionnaire rec ommended that regular meetings continue to be held twice each year, with greater emphasis being placed on active participation by all member companies. The committee has scheduled its next meeting for August 18-19 1978 5n Washington, D.C. The two-day meeting in the nation's capitol will afford a unique opportunity for the committee to meet with one or more representatives of various federal agencies concerned with transportation matters and to tour the Association's eastern office. In view of this Washington meeting, the Traffic Committee has endorsed the pro posed Association "Day In Washington" but some individual committee members may not participate. SGP 0012287 -3- Following is a brief outline of subjects which are now under consideration by the Traffic Committee: 1. Freight Rate Charges A. Railroads - General Freight Rate Increases During 1977. rates were increased 4% on January 1, and 5% on November 30. Railroads in the east are attempting to convince other railroads that an increase is warranted early in 1978. Southern railroads are for holding the line. An increase of 5-6% is anticipated later this year. B. Motor Carrier Rate Increases Motor carriers throughout the United States have been requesting 6% to 8% increases to become effective prior to April 1, 1978. This coincides with National Teamster contract wage increases that will become effective on this date. Rates increased an average of 8% in 1977 for the large bureau carriers, with 4% to 10% for gypsum haulers. 2. Miscellaneous Transportation Activities A. Standard Transportation Codes Our efforts, underway since 1966, to obtain improvement in standard transportation commodity codes on crushed gypsum rock and plasterboard continue. B. Motor Carrier Equipment Innovations Traffic Committee members will attempt to inter- SGP 0012288 -4- change innovative new equipment designs and practices that could benefit other committee members. C. Motor Carrier Driver Hours of Service The Federal Highway Administration (DOT) is considering changes to hours of service for drivers, mechanics, and other laborers. Rules would result in higher labor costs for carriers and in private truck operations. The committee has ex pressed its opposition to some of the changes to the Department of Transportation. D. Bulkhead Flatcar Shipments The committee will evaluate a proposal by Signode Corporation to utilize disposable air bags in lieu of wooden packouts to fill bulkhead flatcar shipment voids. The proposal is being analyzed and may be tested. A potential exists for significant savings in loading costs. 3. Federal Legislation Involving Transportation The Traffic Committee is closely monitoring several key pieces of federal legislation which are pending before both houses of Congress. These bills, reported in the Gypsum Associa tion Legislative Summary, contain provisions which could have a significant impact upon most shippers of building materials. A status report of federal legislation being monitored by the Traffic Committee follows: SGP 0012289 -5- Bill Numbers S 790 HR 5885 HR 8309 Bill Title and Purpose Gypsum Association Interest and Action Mississippi River Locks and Dam 26 Waterway User Charges Reported for informa tion only. Bill will have impact on both waterway and rail freight expense. Will affect future govern ment expenditures for waterway projects. House Action Senate Action HR 8309 HR 5885 passed passed 10/13/77. 6/22/77. Vote on HR 8309 expected after Pan ama Canal Treaty vote. S 1188 HR 4753 HR 9305 Cargo Claims Association has ex- Adjustment Act pressed its support of 1977 by writing to Senator Magnuson. Bill gives iCC power and juris- Additional letters diction to adjudi- may be written. cate loss and damage claims, provides arbi- tration option for disputed claims, and permits recovery of attorney fees when claimant prevaiIs. Bills Hearings pending held before before Commerce, House Science and 1nter- T ransporta- state and tion Com- Foreign mi ttee 6/23/77. Commerce Committee Action ex- and Pub- pected 1 ic Works shortly. and Trans- portation Committee. HR 2443 Independent Truckers Bill exempts owner-operators from ICC regula tion. Traffic Committee opposes and is fur ther studying issues and possible GA impact. Bi11 Not yet pending introduced, before House Public Works and Transpor tation Corn- mi ttee. SGP 0012290 -6- Bill Numbers s 1870 S 2440 HR 7689 HR 8184 HR 9689 Bill Title and Purpose Gypsum Association Interest and Action House Action Federal Transportation lmprovement Act of 1977 Association opposes abolition of Highway Trust Fund and reduction in weight limits. No action. Bill abolishes Highway Trust Fund and assigns motor fuel taxes to general treasury; reduces highway weight limit from 80,000 to 73,400 lbs; provides for 90-10 federal funding on all transportation projects. Letter has been drafted to Senate Subcommittee Chairman. Senate Action Pending before Senate Environmenta1 and Pub1 i c Works Subcommittee. Action anticipa ted. HR 9369 Uniform Stand- Traffic Committee ards for Motor is monitoring. May Carriers take action depend- ing on finalization Bill authorizes of bill. DOT to establish mandatory standards for motor carrier regulation, viz: vehicle size and weight, operator certification, speed limits. Action Not yet pending, introMay be duced. included in Admin?stration transportation package. HR 7768 Motor Carrier Traffic Committee Act of 1977 is monitoring. Pro visions could both Bill liberalizes harm and benefit GA requirements for members and carriers. entry into for- hire motor carriage. Pending Not yet before intro- House duced. Public Works and Transpor tation Sub- committee. Action not anticipated during cur rent session. SGP 0012291 -7- Bill Bill Title Numbers and Purpose Gypsum Association Interest and Action House Action Senate Action S 1699 HR 85*6 Diesel Fuel and Gasoline Conser vation Act Bill permits freight a 1lowances to custo mers when plant pickups are allowed on arti cles sold at delivered prices. Traffic Committee is Pending Hearings investigating. Bill would promote custo before House held 6/27/77Reported mer pickups and benefit Inter- to Senate many private trucking state Commerce operations. and For Committee eign Com on 10/10/77 merce without Subcom- recommenda mittee. tion. S 155** Rai1 Rehabi1itation Act of 1977 Bill transfers rai 1 rights-ofway to federal government. Rai1 roads would pay user fees for use. Traffic Committee is Pending monitoring. Committee before is, in general, opposed.House May recommend future Inter- action. state and For- ei gn Commerce Subcom- mittee. Pending before Commerce, Science and Trans portation Subcommittee. No action anticipated until ConRail studies completed. S 1862 HR 6792 HR 7370 HR 9398 State Freight Assistance Act of 1977 Traffic Committee is monitoring. No ac tion is contemplated. Bill provides for continuation of period during which federal government pays 100% of cost of rail service assistance involving re-` habi1itation, maintenance, and improvement of rail properties. Hearings Pending conducted before before Commerce, House Science 1nter- and Trans state portation and For Subcom- eign mittee. Commerce Action Subcommittee. Action antici pated prior to antici pated 5/15/78 to meet prior to budget 5/15/78 dead line. SGP 0012292 -8- k. State Highway Weight Legislation to Achieve Federal Highway Standards At present, forty states have adopted legislation to increase maximum gross vehicle weights from 73,270 lbs. to 80,000 lbs. This modest 9.7% increase in total vehicle weight translates into a 15-18% increase in payload, representing a sig nificant increase in vehicle productivity. Several states which have not yet enacted legislation to increase truck weights form a barrier at the Mississippi River which prevents transcontinental shipments at the new weight limits, while two states and the Dis trict of Columbia prevent 80,000 lb. shipments along the length of the eastern seaboard. For these reasons, the Traffic Committee has actively supported efforts to increase state vehicle weight limits to the new federal levels. Individual members have written numerous letters to state legislators where such bills are pending, and members have testified "on the grass roots level'* at public hear ings wherever possible. The Traffic Committee has drafted an in dustry statement that members may read when testifying on behalf of the Gypsum Association in support of weight limit legislation. The following table summarizes the status of current legislation to increase gross vehicle weight limits to the federal level: Goal; Gross vehicle weight 80,000 lbs. Single axle limit 20,000 lbs. Tandem axle limit 3^,000 lbs. SGP 0012293 9- Bills Introduced 1978 Indiana HR 1208 Died on calendar New attempt in 1979 Tennessee Iowa Maryland Missouri HB 1111; SB 840 HF 221 SB 583 HB 1439-1440 Outlook unfavorable Hearings 3/1 Hearings 2/9 and 2/28 Hearings 3/6 Bills Planned for 1978 Connecticut Illinois Mississippi Outlook good. If Governor in accord. If not, push in 1979* First bill (2/2/78) died. Second bill planned No Legislative Plans Pennsylvania Arkansas District of Columbia - Unfavorable climate. No 1978 legislative session. Unfavorable climate. Action by ail member companies having operations in these states will be required if our campaign is to be successful. 5. Major Regulatory Agency Proceedings No summary of Traffic Committee activities is com- plete without an examination of pertinent "Ex Parte511 *p*r*o*c*eedings. The Traffic Committee is presently monitoring thirteen proceedings instituted by the Interstate Commerce Commission. In many cases, Gypsum Association intervention in these proceedings is not re quired, but every member company should be kept advised of pro posed changes to ICC regulations which could affect all shippers. In other instances, active Gypsum Association' participation is required to protect the interests of the industry. A summary of Ex Parte proceedings currently being monitored by the Traffic Committee follows: SGP 0012294 Proceeding Ex Parte 73 and MC-1 Ex Parte 55 (Sub 22) Ex Parte 55 (Sub 25) Ex Parte 55 (Sub 26) 10 - Regulation for Payment of Freight Charges Purpose: New credit regulations for payment of freight charges. Status: Issued to become effective April 20, 1977- Indefinitely postponed. Sub ject of ICC task force study. GA Action: No action on original proceeding. Possible action when rules reissued. Implementation of Energy Policy and Conservation Act of 1977 Purpose: Would require energy impact studies and statements on general rate adjust ments as well as transportation rule making and legislative proposals. Status: Interim ICC Report December 16, 1977Comments due February 13, 1978. GA Action: None. Revision of Application Proceedings Purpose: Expedite ICC approval for non-opposed applications for new motor carrier authority. Also establish protest standards. Status: Proposed rules issued September 2, 1977. Comments due October 3, 1977. GA Action: None, but important and will monitor. Motor Carrier Application Proceedings Protest Standards Purpose: Would restrict protests to new motor operating authorities to carriers who have actually handled traffic in the past. Status: Proposed rule November 23, 1977. Comments due January 23, 1978. GA Action: None, but important and will monitor. ( SGP 0012295 II Ex Parte 55 (Sub 27) Dual Operation of Motor Carriers Purpose: Would permit carriers to operate in dual capacity as common and contract carriers unless proven abuses are 1ikely. Status: Proposed rule October II, 1977Comments due December 12, 1977- GA Action: None. Will monitor. Ex Parte MC-110 Service at New Plant Sites Purpose: Regulated carriers could serve new plant sites for two years without need for application proceeding. Then permanent authority unless ob jections received. Status: Proposed rule October 11, 1977Comments due December 12, 1977- GA Action: None. Will monitor. Ex Parte 106 Expand Regular Route Highway Service Corridors Purpose: Would remove many of present re strictions governing routes that can be used by motor carriers. Status: Proposed rule July 22, 1977Comments due September 20, 1977 - GA Action: None. Will monitor. Ex Parte MC-43 (Sub 7) Lease and Interchange of Vehicles Purpose: Full investigation of owner-operator leasing practices. Status: New proposed standards published November 23, 1977 - GA Action None. Will monitor. Ex Parte MC-88 Freight Charges for Motor Carrier Detention Purpose: Status: Establishment of uniform motor carrier detention rules and charges. SGP 0012296 ICC order June 18, 1976. Effective date postponed after appeals. Issue 12 - now before Supreme Court. GA Action: None. Will monitor. Is a key case that will affect freight expense at all plants. Ex Parte MC-109 Substitution of For-Hire Service for Proprietary (Sub 1) Operations Purpose: Would result in expedited proce dures to permit shippers to abandon private trucks and quickly substi tute for-hire carriers. Status: Proposed rule November k, 1977- Comments due December 12, 1977- GA Action: None. Will monitor. Ex Parte MC-97 Investigation into Practices of Motor Common Carriers of Property on Residential and Re delivered Shipments Purpose: Would require motor carriers to cancel all arbitraries for delivery to construction sites. Status: Final rule effective October 7. 1977- GA Action: Letter to ICC asking for clarifica tion on gypsum product movements. Awaiting ICC reply. Ex Parte 320 Market Dominance (Rail Rates) Purpose: ICC study required by PL 9^-210 to study issue of market dominance when establishing rail rates. Status: ICC report October 1, 1976. Was appealed. Now before courts. GA Action: None. Have been monitoring. SGP 0012297 - 13 - Ex Parte 324 Rail Rates Based on Seasonal, Peak or Regional Demand Purpose: Proceeding intent is to facilitate publication of demand-sensitive rates encouraging seasonal, regional and peak period rates for rail service. Status: ICC report issued July 19, 1977. GA Action: Have been closely following pro ceeding for possible GA member applicat ion. The committee Chairman is encouraged by the support given him during his two'terms as chairman, and by the outlook for even greater committee contributions to the industry in the future. Respectfully submitted, jJ, O. *H. D. Gobrecht Chairman SGP 0012298 REPORT OF THE PROMOTIONAL COMMITTEE TO THE MEMBERSHIP March 15. 1978 The next meeting of the Promotional Committee will be held April 11, 1978, the day before the annual meeting, in Chicago, Illinois. A full report on activities will be presented in an oral report to the membership at that time. Highlights of current com mittee activity follow: MOBILE HOMES Activity in this area was reviewed at a Promotional Com mittee meeting held in conjunction with the annual iaWCC/GDCI con vention in San Francisco, California, February 24, 1978. It is recommended that the Association continue its program of education and promotion directed at the various elements of the mobile home market: manufacturers, dealers and buyers. It was felt to be appropriate that this program should remain aggressive while at the same time not becoming antagonistic to competitive materials. It should be noted that the Hardwood Plywood Manufacturers Associa tion has discontinued its attacks on our product, and the Gypsum Association was not drawn into a public controversy in response to their advertising campaign. We are continuing to supply our marketing kits to mobile home manufacturers and dealers with more than 1500 distributed to SGP 0012299 - 2- date. Our TV commercials have been sent to approximately 100 dealers and TV stations around the country. Ten newsletters have been sent to mobile home manufacturers, and we continue to pro duce recommendations for the appropriate use of gypsum board in mobile homes. A shift in emphasis of our advertising campaign has been made at the direction of the Promotional Committee. The current ad, which began a six month scheduled run in DEALER and MERCHANDISER magazines in February, stresses the conventional look of mobile homes which use gypsum board interior walls and ceilings. A portable display, especially prepared for mobile home trade shows, and featuring our new film "Time to Live," has been completed and is currently in use. It was initiated at the Manu factured Housing Institute Supplier Show this past October in Rosemont, Illinois, and as this report is being prepared is on display at the Pennsylvania Manufactured Housing Show in Harris burg, Pennsylvania, one of the largest and most important regional meetings of the mobile home industry. It is scheduled for appear ance at the Indiana Mobile Home Show in South Bend, Indiana this coming August, as well as the MHI Supplier Show in St. Louis this fall and other regional shows as deemed appropriate. And, finally, Association staff members continue to make themselves available to meet with and assist the mobile home manu- SGP 0012300 -3- facturers whenever appropriate. It is felt by the Promotional Committee that current Association activity in the mobile home area is appropriate and adequate but our program must remain flexible in this changing.marketing area. In this regard, the committee and Association staff will monitor the situation and make specific recommendations for alterations or additions to the programs as the changing situation warrants. TIME TO LIVE The committee feels that this film is one of the most powerful educational and promotional products the Association has produced and would like to see a maximum effort made in promoting its distribution, both with groups and nationally through tele vision. A specific recommendation in this regard will be made to the membership at the annual meeting. TRADE FACTORS In keeping with our policy of presenting technical and educational programs in response to requests from trade'factor groups, the Association conducted three seminars for the Ceilings and Interior Systems Contractors Association in recent months. These seminars were prepared by members of the Technical Committee, assisted by Association staff. Members of the'Technical Committee covered three subjects: fire, sound and structure. The seminars were held in Toronto, St. Louis and Las Vegas and in each case were attended by about 80 contractors who were an extremely attentive audience. The question and answer sessions in each case were SGP 0012301 -4- informative and gratifying. The CISCA leadership was highly pleased and appreciative of our efforts and has invited the Association to send a representative to their annual meeting in Dallas the last week of April to discuss further activity between our two groups. The Gypsum Association sponsored a reception at the annual iaWCC/GDCI meeting in San Francisco, February 24, 1978. The recep tion was held in the exhibit hall and served to stimulate traffic through member company displays. A reception line made up of mem ber company representatives greeted the contractors and their wives as they entered the exhibit hall area on the occasion, which caused the heaviest flow of traffic through the exhibits of the entire con vention. It was the consensus of the committee that this is a most worthwhile Association activity, but one which should be analyzed and reevaluated on a yearly basis. The Association Executive Vice President accepted an in vitation to appear at three regional meetings of the National Lum ber and Building Material Dealers Association to discuss the gypsum industry and its products in general. The committee feels that this is a most worthwhile Association activity and has requested that copies of his remarks be distributed to member companies through the Promotional Committee. It may be that member com panies might care to have Association staff members represent them before audiences where general, rather than proprietary, comments on the gypsum industry are appropriate. SGP 0012302 -5- EXPANDED SLIDE PROGRAM The Promotional Committee believes this is a major and most important project. This greatly expanded slide program could be used not only with architectural and building trade schools, but also with building officials, contractor and other outside groups, both by Association staff and member company representa tives. The complete program would be a professionally produced slide plus script program consisting of seven independent but interrelated elements or subjects. The Association staff, with the guidance of the Promotional Committee, is currently at work on this comprehensive project and we will have a specific recom mendation at the annual meeting for proceeding with production of this key program. LITERATURE With the recent production of several major publications, it is felt that the Association library is at its most comprehen sive level in some time and the next year should be one in which we concentrate on promotion of existing literature, rather than production of new pieces. Most printing this next year will con sist of reprinting existing items. In this regard, a special promotional program was initi ated to gain acceptance of our USING GYPSUM BOARD FOR WALLS AND CEILINGS as a reference book by building trade classes and archi tectural schools. As a result of this program, there are 119 such SGP 0012303 -6- schools at this writing that are using our book on a regular basis. Some 14,000 to 15i000 books have been distributed for this purpose since it was printed six months ago. It is felt that this is a valuable continuing educational audience which will be important to us in the future and would be highly receptive to our new gypsum slide program. Further comments and recommendations resulting from the committee meeting on April II will be presented in my oral report at the annual meeting. Respectfully submitted. SGP 0012304 REPORT OF THE MANUFACTURING AND MINING COMMITTEE TO THE MEMBERSHIP March 15, 1978 The Manufacturing and Mining Committee will hold its next meeting in Chicago, Illinois on April 11, 1978. That meeting is subsequent to the preparation of this report, but prior to the annual meeting where my supplemental oral report will be presented. The establishment of an Association Washington, D.C. office and additional staff time spent in the legislative area have provided better over-all coverage of legislation of importance to our industry. Legislative summaries and briefings, published monthly during Con gressional sessions, have received favorable response from many through out the industry. New legislative items have been and are being added at the request of Association committees, all of which attests to the worth of these Association publications. Highlights of the committee's activities are as follows: LAND PRESERVATION AND RECLAMATION The new office of Surface Mining has been established in the Department of the Interior under the "Surface Mining and Reclama tion Act." Final interim regulations covering surface coal mining operations were published last year. Developments under the new law are being followed closely since it is fairly evident that non-coal SGP 0012305 - 2- operations wilt experience similar legislative enactments in the near future based on the Council of Environmental Quality recommendations. The Council is currently studying the application of regulations for non-coal mineral industries. As reported earlier, PedCo, under contract to EPA, studied wastes (air, liquid, solid) associated with the mineral mining in dustry to define the need for future research and development pro grams. PedCo visited three gypsum mining locations as a part of their study and found that no major waste problems exist. Similar studies of both our mineral mining and board production operations can be expected in the near future. ENVIRONMENTAL MATTERS The committee and Association staff continue to monitor EPA air and water pollution programs covering our mineral extraction under SIC 1^92 and the board manufacturing process SIC 3275. As previously reported, rain water run-off control regula tions for the mining industry will be vested in state control plans rather than as a national EPA activity. States will be operating under a recommended strategy for regulation, and this is an area that warrants close monitoring by the membership. The EPA study of air emissions in the mineral mining and processing industry is nearing completion, and early signs indicate l SGP 0012306 / -3- that no major gypsum operational problems will result from final regulations. The major objective of this EPA program is to project I98S emission control targets for the mineral industry. "Clean Air Act Amendments," Public Law 9595. allows for an 18 day variance in Class 1 areas when granted by the state and bars significant deterioration in over-all air quality. New growth in non-attainment areas is permitted if state air control plans show that problems will be dealt with in a reasonable period of time. As you will recall, the original "no growth proposal" was of major concern to the committee. The final law appears to have provided some latitude in the non-attainment area. EPA guidelines on preven tion of significant deterioration of air quality can be expected shortly. Vater Pollution Control Act Amendments," Public Law 95"217t provides that industries which have made a good faith effort to meet the 7/1/77 deadline for achieving effluent limitations based on "Best Practical Control Technology" are eligible to receive an extension to 7/1/79. The requirement that industry achieve effluent limitations based on "Best Available Technology" by 7/1/83 has been modified. ENERGY The Gypsum Association continues to participate in the voluntary/mandatory industrial energy reporting programs under the SGP 0012307 -4- Department of Energy (DOE). Fourth quarter 1977 industry energy data reported 2.7057 BTU's per MSF with 4,129,896 MSF of board produced. The figure breaks down by fuel source as follows: Source Natural Gas Electric Propane Oil #2 Oil #4 Oil #6 Coal Percent 81.08% 5.62 1.63 6.43 2.59 1.04 1.61 Final 1977 energy data as compared to the 1972 base year, resulted in a 12.7% energy improvement for the industry. Beginning with the first quarter 1978 energy report, all eleven Association members will be included in the DOE reporting program. ( Although no drastic alterations are anticipated in the current energy reporting program under the new Department of Energy, changes in reporting format can be expected in the near future. Other new energy developments can also be expected following Congressional approval of the energy package. SEVERANCE TAX The Association continues to monitor severance tax activity both at the state and national level. No severance tax legislation has been introduced since the semiannual meeting. SGP 0012308 -5- If our successful track record is to continue in this area, we must encourage plant personnel to be constantly alert for such taxes, and report any activity immediately, so that the Association can take timely action to defeat such tax proposals or obtain an exemption for gypsum. SAFETY COMMITTEE LIAISON The Manufacturing and Mining Committee continues to re view the Safety Committee programs and recommendations coordinating production related programs of mutual interest. The "Federal Mine Safety and Health Act" as signed into law November 9. 1977. will have significant impact on gypsum opera tions, with application of mandatory safety and health standards, stiff penalties for violations, mandatory training, and Labor and HEW inspection procedures. The Mine Safety and Health Administra tion (MSHA) will have the responsibility for enforcement of the new law. The committee plans to review Safety Committee recommenda tions relative to proposed industry communications programs covering the new mine safety law. My oral report will include a review of such recommendations. A more detailed report covering the new mine safety law appears in the Safety Committee's Report to the Membership SGP 0012309 -6- As previously reported, the Safety Committee plans to request $23,925 for production of a new safety film and promotional materials. The Manufacturing S- Mining Committee endorses this film production and supports the Safety Committee's request for budget approval. The Chairman of the Safety Committee will report on other safety matters of industry importance both before our committee meeting and at the membership meeting April 12, 1978. INDUSTRY HEALTH SURVEILLANCE PROGRAM Following the semiannual meeting, member companies con ducted a self-appraisal mortality review study of their operations, preparatory to engaging the services of Dr. Clark Cooper for a mortality feasibility study of industry operations. This action was in accordance with the committee's recommendation to the Board at the semiannual meeting. The membership self-appraisal activity disclosed a few areas of concern which required further investigation and consulta tion with Dr. Cooper prior to initiation of the mortality feasibility study. Following a March 7> 1978 task group meeting with Dr. Cooper, a satisfactory means of addressing noted concerns were established. A complete review of this important activity will be contained in my oral report at the membership meeting. SGP 0012310 -7- TECHNICAL AND BUILDING CODE COMMITTEE LIAISON As in the past, the Manufacturing and Mining Committee plans to review matters of mutual interest with representatives of both Technical and Building Code Committees at our April II, 1978 meeting. A review of this activity will be included in my oral report. METRIC PROGRAM The industry metric conversion program and the actions of the task force assigned to this project will continue to be of pri mary interest to the future activities of the Manufacturing and Mining Committee. This subject will be further reviewed at our forthcoming meeting. Additional items resulting from our April II, 1978 meeting will be contained in my oral report to the membership. Respectfully submitted, Chairman SGP 0012311 REPORT OF THE METRIC COMMITTEE TO THE MEMBERSHIP March 15, 1978 This being the first formal report of the Metric Com mittee plus the fact that there are varying degrees of knowledge and understanding about the entire area of metrication, a general overview precedes the specific report of the committee. BACKGROUND The present metric system or SI (international system) is based on seven well-defined base units: meter (length), kilo gram (mass), second (time), ampere (electric current), Kelvin (thermodynamic temperature), mole (amount of substance), and candela (luminous intensity). All other units are combinations of these base units. The advantages of the SI system are numerous, but of most significance are the elimination of fractions, use of the powers of ten, and the universal scope of the system. HISTORY The United States formally cooperated in the develop ment of the metric system. In 1875, we along with 16 other countries, endorsed a standardized version of the metric system by signing the Treaty of the Meter. Use of the metric system in the U.S. was made legal, but not compulsary, in 1866. SGP 0012312 -2- The United States also cooperated in developing the present International System of Units (SI), which was adopted by the General Conference on Weights and Measures (an inter national organization) in I960. In 1968 Congress authorized a three-year study. This study was submitted to Congress in 1971 and concluded: "Increas ing use of the metric system in the United States is inevitable and in the best interests of the country," On December 23, 1975, the Metric Conversion Act was signed into law. The intent of the legislation is that initiative for changing oyer remains in the private sector. Three major aspects of the Act are: Voluntary conversion (the major reason for this was to avoid an obligation by the federal government to defray costs); no specific time table established (in an earlier form a ten-year timetable was recommended); the President to nominate a 17-member Metric Board to coordinate conversion. At the present time, 95% of the world's population is operating with SI units. Just recently, most of the Englishspeaking nations converted from Imperial measure to metric, in cluding the United Kingdom, Australia, New Zealand, and Canada. The common market nations have decreed that non-metric products will no longer be accepted by member nations. i SGP 0012313 -3- As the U.S. embarks on conversion, we part company with the last four nations not on metric: Brunei, Burma, Liberia and South Yemen. CURRENT U.S.A. SITUATION As of this writing. President Carter has nominated all 17 members of the Metric Board, and several influential congress men have stated that they anticipate congressional confirmation momentarily. Proposed members of the Board represent science, large and small business, labor, retailing, government, con struction, standards, publishing, and broadcasting. The Board's major responsibilities will be to develop public awareness and education programs, establish guidelines, hold hearings, conduct research, and make recommendations to the President and members of Congress. In addition to the Metric Board, the major coordina tion and planning will be handled by the American National Metric Council (ANMC) which is an organization of the private sector and was created by the American National Standards Institute (ANSI) in 1973. ANMC has 300 trade associations and 500 U.S. companies as subscribers. It is a one-of-a-kind organization which prefers to be considered a "bridge" between the private and public sector. SGP 0012314 -4- It is in the sensitive position of maintaining and expanding the support of business and industry, while working with the state and federal governments in the national interest. The Gypsum Association is a charter member of ANMC. CURRENT SITUATION - CONSTRUCTION SECTOR Within the construction industry, coordination is being accomplished through the "Construction Products Sector Committee" of ANMC. A majority of our member companies1 products fall within the scope of Sub-Sector Committee 3.03.02 which is chaired by D. E. Brackett, the Gypsum Association's Eastern Manager. This Sub-Sector basically covers interior and exterior rigid and semi-rigid panel and roll materials such as gypsum board, plywood, particle board, hardboard, wood and mineral boards and tile, plastic sheets and boards, and insulation. BACKGROUND - GYPSUM ASSOCIATION ACTIVITY Activity within the Association with respect to metri cation dates back to early 1972 following issuance of a joint resolution by the 92nd Congress to establish a policy relating to conversion to the metric system in the United States. At the 1977 fa 11 semiannual meeting, the Association Directors formally established a standing Metric Committee and recommended that each member company assign one representative ( SGP 0012315 -5- to this committee that would espouse their company's viewpoint on metrication. Prior to this time, each standing committee had been attempting to formulate a plan and express the views of their members within their areas of specialization. This led to diverse opinions by various committees and even among representatives with the same company. REPORT OF THE COMMITTEE The first meeting of the newly formed Metric Committee convened on December 15, 1977 in Chicago. Six member companies were represented out of eleven companies with assigned represen tatives . Subsequent to this report, the committee will meet on April 11, 1978 preceding the annual meeting in Chicago and a full report of additional activities will be made orally to the general membership of the Gypsum Association on April 12. CANADIAN EXPERIENCE Because some member companies ship materials into Canada, the effect of the Canadian conversion is of immediate concern. The Canadian experience can serve as a guide for future activities with in the U.S. Mr. S. G. Love, Metric Coordinator for Canadian Gypsum Company, reviewed the current situation and in summary reported SGP 0012316 -6- the following: ,rThe construction industry is primarily going to 'hard conversion' (even metric units)." Example: 48 inch board, which translates to 1219-2 millimeters, becomes 1200 milli meters or 47.24 inches. The Canadian industry has adopted the 100 millimeter (3-94 inches) module in lieu of the previous 4 inch module. In Canada, the construction industry established "W day as January I, 1978, at which time most manufacturers of build ing materials began providing products with hard metric dimensions. In most cases, this deadline was met including such building materials as gypsum and fiber boards, asphalt roofing, insulation, glass, concrete, lime and clay products. Two major trade segments that are not converting at this time are the transportation industry (rail and truck) and the lumber industry. This is primarily because of their close association and interaction with the United States. As an ex ample, 60% of all Canadian lumber is exported and the United States is the primary importer. The Canadian gypsum industry is converting to hard conversion in widths and length, but soft conversion in thickness. SGP 0012317 -7- COMMITTEE CONSIDERATION The committee considered metrication in two phases. Phase 1; Establishment of rounded metric soft conversion sizes which would permit the Association and member companies, if they so choose, to publish coordinated metric sizes (U.S. and metric) in literature and for product identification. Each member com pany was asked to submit their proposed metric equivalents and the consensus of all submissions will be used in establishing the Association guideline. Phase 11: If the Gypsum Association is to participate with the American National Metric Council SubSector Committee, a consensus position ought to be taken by Association members as to what hard or modified hard conversion would be acceptable to the industry if and when U.S. goes metric. Following considerable discussion, it was apparent that at this time we are not in position as an industry to propose a consensus opinion. One or more member companies feel strongly that the establishment of proposed hard conversion numbers would indicate that gypsum board sizes should ultimately go to hard conversion. Opinions of other members range from no comment to the opinion that we should look toward hard conversion including thickness as the proper approach in the future. There were some obvious negative aspects of recommending immediate hard conversion which would affect manufacturing, in ventories, etc., but these are considered areas affecting all industries, any time a significant change is contemplated. SGP 0012318 -8- It was the consensus of the committee that we should continue to participate in metric activities with other industries within the building sector, including other trade associations and governmental agencies. The committee will meet again on the day preceding the annual meeting in Chicago where most of the representatives can be present. Respectfully submitted, R. P. Entz Chairman * ( SGP 0012319