Document mbypRkbJ2mLVKqEEY3xzZ1ko4

DRILLING SPECIALTIES COMPANY BARTLCSVILLC. OKLAHOMA 74004 911661*5405 918 661-6163 918 661-6333 TELEX 49-?455 TWX 910 84I-2S60 March 16, 1979a,' bp jC^NewOiaseal^l, Lost Mr. W. B. Kirkland Baroid Petroleum Services Cif. NL Industries Inc. P. 0. Box 1675 Houston, TX 77001 Dear Mr. Kirkland: New Diaseal M has been markedly improved. It no longer contains asbestos (our last sale of Diaseal M that contained asbestos was in August, 1977). Also, concentrations of new Diaseal M can be added to a high solids-high water loss slurry without causing too high a slurry viscosity: the result is a better slurry for overcoming severe lost circulation. In other words, the standard formulation is adequate in most cases, but when additional new Diaseal M is added, the chance for success, when dealing with severe losses, is improved. There is also the advantage that there is more margin for error by field personnel in mixing a Diaseal M slurry than with the previous product. New Diaseal M is now being blended at Midland, TX primarily because of labor and governmental agency problems in California, where it was previously blended. Shipment of the components to another site for blending has in creased our costs significantly. Inflation has also increased costs. As a result, the current price of new Diaseal M is $440/short ton*, FOB Midland, TX. However, we have secured a "Mixing in Transit Tariff (MITT)M which will allow our customers to purchase Diaseal M in 40 ton carload lots for 0/ short ton, FOB Houston. Here's how this works: the components are shipped to Midland, blended and then reloaded for shipment on to Houston at no additional freight cost. This will save our customers additional freight on material needed in the Gulf Coast area. To take advantage of the MITT, the purchase of Diaseal M, FOB Houston will have to be programmed and coordinated, resulting in estimated delivery time of two months. For normal delivery times, it will be necessary to purchase Diaseal M, FOB Midland (20,000# TL minimum). * All orders are subject to acceptance by Drilling Specialties Company and to the terms and conditions of sale in effect by it at the time of shipment. This price list supersedes all previous price lists of these sales. DRILLING MUD ADDITIVES A\'P CEMf'Ml 'WSirMf, T March 16, 1979 2- - Sau-37-79 While awaiting the MITT, we warehoused some new Diaseal M in the Houston area, at our own expense, in order to introduce the new product. We will no longer do this. We plan to start promoting the sales of new Diaseal M aggressively once more now that the MITT has been allowed. Hence, it may be to your bene fit to order new Diaseal M now for your future needs in the Gulf Coast area. Yours very truly, / CAS:tlb -RC C. A. Sauber