Document k4yOqN39EZr336bMmy3bVm4B

SPECIALTY CHEMICALS DIVISION SOUTH CHARLESTON PLANT ENGINEERING May 13, 1986 UC-2U0 KtCuj VCD MAY 14 1986 MAfNTENANCE DFPT. TO: . J..R. Dement S. Rossi CC: W. D. Bradbury J. E. Liana SIBJECT: Asbestos Insulation Upgrade Gentlemen: The plant-wide insulation asbestos upgrade project is a high-priority safety/hea*lt h> program.______________ Enclosed please find a draft of the required Outliner-- 1 ___^___________________* _______J _ ____fi. i. I_______________ _______I a 1 J ___ of Project (0/P) for this major capital project that we can critically review in our next meeting. Comments and highlights follow: o Project cost of $4.5MM over next three years. See basis in 0/P. o If you want to start spending money, we can get advance through A1 Walker up to $25CM. Would A1 approve such an advance for this project? o If we do a detailed scope and estimate, would require more time for O/P. Suggest we add more words in 0/P to cover wide-range scope (survey). o Maintenance to supervise field construction. Need to develop a firm field management program. o Project to meet all OSHA and EPA Standards. Sal and John, let's meet after you've had a chance to review the draft 0/P. JFD/wdm Ext. 3469 Enclosure 2301G Joseph F. Dodd UCC 006456 SOUTH CHARLESTON PLANT ENGINEERING SPECIALTY CHEMICALS DIVISION OUTLINE OF PROJECT SOUTH CHARLESTON PLANT INSULATION UPGRADE SOUTH CHARLESTON, WV DRAFT May 13, 1986 UCC 006457 OUTLINE OF PROJECT SOUTH CHARLESTON PLANT INSULATION UPGRADE TABLE OF CONTENTS I. INTRODUCTION II. SUMMARY III. SPONSOR'S OBJECTIVES IV. FACILITIES V. ENVIRONMENTAL PROTECTION/OCCUPATIONAL HEALTH AND SAFETY CONSIDERATIONS VI. SUPPORTING FACILITIES VII. PROJECT PLAN VIII. SCHEDULE IX. COST ESTIMATE A. Sunmary B. Basis for Estimate C. Cash Flow X. COST ALLOCATIONS TO DIVISIONS PAGE 1 1 2 3 4 4 5 5 6 7 UCC 006458 I. INTRODUCTION Much of the insulation in the South Charleston Plant is asbestos and is in poor condition. The exposed asbestos presents a safety and health hazard associated with airborne particulate asbestos. II. SUMMARY The asbestos insulation throughout the South Charleston must be upgraded to comply with the Occupational Safety and Health Administration (OSHA) standards. The project is estimated to cost $4.5MM over a three-year period. The plan is to remove asbestos from idle equipment, replace damaged insulation with an approved type, and seal all remaining asbestos insulation. The justification of this project is Occupational Health. The present OSHA Asbestos Standard, 1910.1001, specified two fibers/cc as the maximun allowable exposure over an eight-hour period. The figure refers to fibers greater than five micrometers in length and would amount to about 16 million fibers in that time period. Because there is no evidence in occupational studies to show that there is a threshold level below which there are no adverse effects, OSHA is pressing for a lowering of the level to 0.5 or 0.1 fibers/cc. UCC 006459 2- - III. SPONSOR'S OBJECTIVE The basic objective of this project is to upgrade the asbestos insulation throughout the South Charleston Plant to comply with OSHA Standards. Completion All insulation upgrade to be complete by June 1989. Project is high priority and must be executed on a continuous basis over the three-year period with only curtailment during the bitter cold winter month. Safety/Health All^B^ggien Safety/Health Guidelines must be following during asbestos removal, repair, and covering. Government Regulations Plant will be in compliance with all applicable OSHA and U.S. Environmental Protection Agency (EPA) Regulations at project completion. UCC 006460 -3- IV. FACILITIES The asbestos insulation upgrade encompasses the following units and the work schedule on a priority basis follows: ? Phase 1 No. 2 Steam Plant Portion Water Treating Unit i'v-'f't r 1 Phase 2 (Manufacturing Units) Chemical Mixing IJpper Island Mainland PVA Resins Solvent Vinyls Polyols Specialty Catalyst Specialty Chemicals Middle Island Oxide Adducts Phase 3 Complete Water Treating Unit Utility Distribution Distribution Bulk Terminal Maintenance Some of the work has already been authorized for removing asbestos insulation from idle equipment and lines; the work is not part of this major capital project. The approved working budget projects are: Project Approval Cost Status No. 2 Powerhouse Solvent Vinyl Resins Specialty Chemicals Division Units 10/85 1/86 1/86 $111,000 17,000 182,000 On-going Complete On-going Total $310,000 UCC 006461 -4- V. ENVIRONMENTAL FROTECTION/OCCUPATIONAL HEALTH AND SAFETY CONSIDERATIONS This project will correct an Occupational Health concern by replacing or sealing exposed asbestos insulation throughout the Plant. When the insulation is being replaced or removed, Safety and Health Guidelines will be followed which includes: installing rope barricades and 4 5>L. clearing the area of plant personnel, posting of warning signs, proper i1' bagging and disposal of insulation, and monitoring of surrounding work areas. In addition, assuring that contractor personnel adhere to guidelines such as: wet clean-up, wearing of appropriate respirators, wearing and disposal of proper protective clothing, etc. This project will be in compliance with all applicable OSHA and EPA Regulations. The EPA will be notified that the removal of asbestos insulation could occur at the South Charleston Plant. VI. SUPPORTING FACILITIES A. Distribution The project will have no effect on Distribution facilities. B. Energy Systems The project will have no effect on Energy Systems requirements. However, Energy Conservation will be improved with this insulation upgrade. C. Safety and Environmental Considerations See Section V above. UCC 006462 -5- vn. PROJECT PLAN The project survey, or scope, was prepared by the Maintenance Department over the last year. The priority of work is shown in the Facilities Section on page 3. Insulation specification consultation will be supplied by Engineering. Field construction by an outside contractor or the Central Engineering Construction Group, will be supervised by the Maintenance Department. Project Management, including cost control and reporting, will be provided by Plant Engineering The project organization follows: Steering Committee Assistant Plant Manager Maintenance Superintendent General Project Manager S. Rossi J. R. Dement J. F. Dodd Project Team Maintenance Field Contractor Foreman Maintenance Coordinator/Supervisor Project Manager ? VIII. SCHEDULE Key dates are: Outline of Project Approval CBP Approval Mechanical Completion June 1986 August 1986 June 1989 UCC 006463 6- - IX. COST ESTIMATE A. Summary o Construction Labor o Materials o Engineering* o Contingency Total $4,500,000 * Insulation specification consultation, project management and field coordinator of contractor. B. Basis for Estimate The estimate for the Phase I work is based on a detailed scope and budget pricing obtained from a local insulation contractor. The remaining work is based on an insulation survey of each operating unit and estimating the associated man-hours and materials required. The total man-hour estimate i f work. C. Cash Flow ? |>0:.vv . 1986 1987 1988 1989 $ 500,000 $1,700,000 $1,700,000 $ 600,000 UCC 006464 -7- X. COST ALLOCATIONS TO DIVISIONS The program costs for Phases 1 and 3 are allocated to divisions (tenants) on 1986 usages of utilities and services (plant period cost allocations); whereas, the Phase 2 costs within the manufacturing battery limits are totally funded by the responsible tenant. Division Phase 1 (1) Phase 2(2) Capital Expense Capital Expense Phase 3(1) Grand Total Capital Expense Capital Expense Specialty Chemicals Industrial Chemicals Solvents & Coatings Materials Totals TO BE CALCULATED Notes: 1. Allocated Host Support Project 2. Allocated directly to tenant as work is in battery limits of unit; these allocations will be shown on the Capital Expenditure Report (CER) allocated major capital. JFD Draft May 13, 1986 2301G UCC 006465