Document rQwQ3Yx3QOEVbMx0aXeJ9pRr

A CHEMICAL MANUFACTURERS ASSOCIATION EXECUTIVE COMMITTEE MEETING Tuesday, March 3, 1992 CMA Offices, Washington, D.C. Minutes of Meeting 1. The meeting was called to order at 9:00 a.m. by Chairman Popoff. There were present: Members: Frank P. Popoff, Chairman Elwood P. Blanchard, Jr. J.A. "Fred" Brothers Vincent A. Calarco Earnest W. Deavenport, Jr. Ernest W. Drew Earle H. Harbison, Jr. Peter R. Heinze J. Roger Hirl John W. Johnstone, Jr. Robert D. Kennedy John E. Peppercorn Robert A. Roland M. Whitson Sadler J. Lawrence Wilson Secretary: Charles W. Van Vlack Treasurer: Gary C. Herrman General Counsel: David P. Zoll By Invitation: ^Charles A. Aldag, Sherex Chemical Company, Inc./CMA R. M. Julie Archuleta, Occidental Chemical Corporation Robert D. Bradford, Olin Corporation Kenneth E. Davis, Rohm and Haas Company J. Brian Ferguson, Eastman Chemical Company Clyde H. Greenert, Union Carbide Corporation E. Judy Lambeth, E.I. du Pont Jon C. Holtzman, CMA James D. Mclntire, CMA *S,A. "Tony" Mortimer, Union Carbide Corporation Morton L. Mullins, CMA Michael A. Pierle, Monsanto Company William M. Stover, CMA Gordon D. Strickland, CMA Donald J. Verrico, E.I. du Pont de Nemours & Company *Glenn R. Weckerlin, Chevron Chemical Company Ben Woodhouse, The Dow Chemical Company * Part time only 2. Minutes of Last Meeting. The minutes of the January 13, 1992, meeting were approved as distributed. 3. Proposed 1992/93 Budget, Fee and Assessment Schedule and Amendment to Definition of Chemical Sales. Mr. Deavenport presented the Finance Committee's recommendations for the Association s 1992/93 budget and fee schedule which had been approved by the committee the previous day and was recommended lor Executive Committee 700974.0370 VEX 2 and Board approval. He highlighted key elements o-f the Finance Committee meeting and preliminary budget which included: o Addition errors necessitated changes in the 1991/92 projected results and the "1992/93 preliminary budget. o Presentations to the Finance Committee the previous day indicated the 1992/93 preliminary budget reflected a tightly managed process with total expenses virtually flat as compared to 1991/92 projected results. o Staff and committee priorities had been adjusted to live within the projected 3% decrease in member fees caused by the decrease in member company chemical sales. Hr. Deavenport then recommended approval of the proposed 1992/93 expense budget of $34,295,200, with funding to be provided by the fee schedule unchanged from the current year, with a mandatory Responsible Care public outreach assessment of .0131% of chemical sales and with the use of $367,200 of the reserves (as summarized on Exhibit A). Mr. Deavenport also recommended approval of the change in the definition of Chemical Sales (also set forth in Exhibit A) which would eliminate exclusion No. 5 relating to carbon, bone, and lamp black as suggested by CMA1s Membership Committee. The proposed use of the reserves would still leave the Association with projected reserves of $7,096,600 which would keep them within the reserve guidelines at a level of 26.7% of general operating expenses. The proposed budget (including the correction of the addition errors), fee schedule and assessment, use of reserves, and changes in the Definition of Chemical Sales (as summarized in Exhibit A) were approved and recommended for Board concurrence. It was noted that with the backlog of approved programs which are not currently funded, additional revenue probably will be necessary in the 1993/94 budget. 4. Membership Committee. Mr. Sadler reported that the Membership Committee had reviewed the qualifications of Tetra Technologies, Inc. and recommended their election to membership. application was approved. The 5. Public Outreach Program. Dr. Blanchard led a presentation on the public outreach program which included information on: activist attacks on Responsible Care; activist and CMA "testing" of the 800 number; more promising results from the latest analysis of the advertising trend data; and plans for a CMA press conference announcing the results of the membership's pollution reduction efforts over the past four years. The Executive Committee requested that these topics be reviewed for the full Board in April and requested that the results of the CMA 800 member test be sent to the Executive Contact at each member company. 6. Responsible Care Product Stewardship Code. Mr. Weckerlin presented the proposed product stewardship code and reviewed the process since January for soliciting final member company comments. He 700976.0371 VEX 3 reviewed specific changes that had been made, particularly in the areas relating to distribution and distributors. The Executive Committee approved and recommended for Board concurrence the code (Exhibit B) with the expectation that if the Board approved the code in April, it would be "issued" only when the implementation guide was completed (Hay/June). 7. Responsible Care Program Status and Related Issues. Mr. Aldag reported on those companies and associations seeking Responsible Care'partner status and efforts underway to evaluate their applications. He indicated that at least one company had withdrawn its application and that it was expected that one or more applications might be brought forward for Executive Committee approval in April- Mr. Aldag then presented some Responsible Care "credibility" issues and preliminary concepts for discussion. There was extensive discussion of the competing needs to provide credible measurements of progress versus the need not to change the terms of the initiative with the membership, that being that each company is required only to make progress from year to year, and that the pace of improvement and the details of the self assessment process are left to each member company to determine. Issues raised and points made in the discussion included the: need for a credibility check and a schedule for implementation and measurement techniques; role of the ELGs in dialoguing with the membership on this issue; role of TQM in Responsible Care; possibility of developing specific measurement devices for one or two codes; seek examples of existing hard data (like TRI reports) to verify performance improvement; discomfort with third party audits; and possible use of ISO 9000 certification. The Executive Committee requested that further refinement of these concepts be undertaken and that they be brought back to the Executive Committee and Board in April for further discussion. Mr. Roland led a discussion on the relationship between Responsible Care and CMA's traditional advocacy role, and the ongoing effort to maintain consistency across all the Association's programs. 8. MSDS Public Access Policy. Mr. Mortimer presented the proposed policy and program for MSDS public access through CMA s CHEMTREC Center. After an extensive discussion of the proposal and its ramifications, and the other options available and government mandates which might be developed, the Executive Committee approved bringing forward the proposed policy and program (Exhibit C) for Board consideration in April. 9. GATT Negotiations and Import Sensitive Product List. Mr. Walls provided a brief update on the status of the GATT negotiations and some potential difficulties involving the number of chemicals identified on the ISAC-3 list of import sensitive chemicals. The Executive Committee agreed that Mr. Roland should send a letter to the ISAC-3 requesting that it reexamine the list and the criteria used for including chemicals on the import sensitive list. The Executive Committee also agreed that CMA's support for the tariff harmonization 700976.0372 VEX A 4 proposal was not necessarily contingent upon the acceptance of all the substances on the list as import sensitive. 10. Treasurer's Report. Hr. Herrman reported that the supplementary budget material provided at the meeting included year end projections which estimate a contribution to reserves of $263,200. 11. Committee Appointments. Hr. Van Vlack presented nominations to fill vacancies of several Association committees. were approved as s'et forth in (Exhibit D). These 12. President's Report. Hr. Mayhew presented a brief report on CHA member company TRI emission improvement numbers and Hr. Stover provided a preview of global climate change issues which will be presented in detail in April. Mr. Roland briefed the Executive Committee on a recent success regarding the RCRA "Mixtures and Derived from Rule" and the efforts planned in the months ahead to develop a new regulatory proposal. He thanked Dr. Blanchard and DuPont for volunteering a senior environmental staff person to work directly on this project. 13. Carrier Assessment Council. The Executive Committee endorsed a further solicitation of the membership to participate in the Carrier Assessment Council (Exhibit E) as presented by Mr. Strickland. 14. New Business. Mr. Hirl reported on the status of Clean Sites Inc. funding and encouraged companies to contribute commensurate with their corporate interests and relative size. The meeting was adjourned at 12:02 p.m. Charles W. Van Vlack Vice President-Secretary 700976.0373 VEX Exhibit A CHEMICAL MANUFACTURERS ASSOCIATION orsummary recommendations for consideration or TOE Ott FINANCE AND EXECUTIVE CCNHITTEES AS CONTAINED IN THE PRELIMINARY BUDGET rOR THE FISCAL TEAR BEGINNING JUKE 1, 1992 RECOMMENDATIONS OH TY 1992/93 RROPOSED BUDGET{ A. RECOMMENDED ACTION; Approval of an expense budget for the fiscal yaar beginning Jana 1, 1992 of $34,29S,20Q. COMMENTS; The recommendation includes (24,299,200 in expenses for CKA General Operations and an additional $10,000,000 in expenditures for the aaparataly funded Responsible Cara Public Outreach Program. Pages no. 2, 3 and 4 In this tab present svuaearies of tbs program adjust ments and budget recommendations supporting the above indicated expenditure level. B. RECOMMENDED ACTION; Approval of the schedule of membership fees as sat forth bel&# which is un changed fron the previous ysar. Thi Rssponsible Care Public Outreach Assessment is unchanged from .0131% to cover the cost of $10.0 million for this separately funded program. Chemical Sales Calendar Tear 1991 SMllllon Membership fee Canadian Members Under 10.0 10.0 - 25.0 25.0 - 50.0 50.0 - 100.0 100.0 - 400.0 Over - 400.0 Maximta Pea $ 7,500 $ 7,500 $ 10,000 0.0371%" 0.0339%" 0.0309%* 0.0277% $650,000 "Up to, but not more than the membership fee which would be obtained by multiplying the minimum amount of the next higher chemical Bales bracket by the percentage factor applicable to the higher bracket and not less than $10,000. Zn addition to tha above fees, the Board of Directors has established .0131% assessment to a maximum of $307,400 to be applied to reported sales in support of the Responsible Care Public Outreach Program. ANALYSIS; As set forth in Tab 920 of this workbook, the fee schedule should result in dues of S2l,700,000, revenue from the apeclal assessment of $10,000,000 and, combined with other reve nue, a FY 1992/93 budgat that includes a modest $367,200 use of reserves. Oik's policy on re serves is thst reserves should be maintained within a range of a floor of 25% and ceiling of 50% of the General Operations expense budget. The above fee schedule should maintain reserves by the end of FY 1992/93 st an eatimatad $7,096,600 which represents 26.7% of the General Opera tions budget. C. RECOMMENDED ACTION; Approval of the change to the Definition of Chemical Sales as recotmnended by CMA*s Membership Comitt**. The recommendation is to eliminate exclusion 95 relating to Carbon, Bene and Lamp Black. Specifies are set forth in Tab 420 of this workbook. -1- 700974.03?4 CMLHiCAL ASSOClATi'a- pjelikihajy budget - *u*mwft st DtPArr*arr tic pjocaam ft *0/*l Actual. ft 91/92 Bodgai and Project*! Agaulta. FritlalMr; n 13/13 M(*t n 90/91 cm A3V0CACY PMOCAAKS Aodltod KKTJUkTorr aptaias c>cyM>TwtJ: i Baoalta Claan lilt ltB?riu - TU <2. pg. 7 1 1*1,100 Surface ttt - TAB 12. pg. B 6tOvn4Mi*r llnclullny COM) - TM IJ. H- 1 279.100 SO.700 Maiardoua Haiti MuiifMiit (KM) - TU 12, pg. 10 393.900 Narardous Maata Cleanup (SuperfuBtf) * TAB 12, PS 11 230,000 Pollution Prevention Prograa * TU 12, p$. 12 411,900 Flak Umaant. Flak Management - TU 13, pg. 11 111,100 Product Stewardship and T9CA - TU 11, pg. 17 421,400 Public and Occupational Health - TU 13, pg. II 310.BOO Epidemiology leisure# t Information Cantar (EXIC)TM 13 Public and Occupational Safety - TU 14, n- 32 Co^eunity Utr.Mii i Emergency Pafponaa (CAEA) TU 14 135,200 197,100 290,000 bginaarlng 6 Oparatiorva - TU 14, pg.26 233,900 Dlatributlon Safety. fcconoalea t emergency PaopotMa TU 13, pg.J7 930,300 Zntarlnduatry Mil Safety * TU IS, PS.31 192.200 OEPUTHEKT TOTAL' 4 5.130.900 PPEAAL OOVgPHKCWT RELATIONS OOAPTKPffi International Trada - TU 11. (4. 32 Tuition - TU 11, pg. 33 bitin 1 Petrochanleal feedstocks - TU 11, pg, >4 International Affalra * TU 11, pg. 33 Economic Advocacy ( Analysis - TU II, pg. M Federal Legislative Advocacy f Coelltioaibg-TU 17 Craaaroots Prograa - TU 11, pg. 42 Political Activities Prograa TU M, pg.4J OEPUTMEHT TOTAL' 4 122.700 242.700 393,900 324,400 391,900 1,902,900 291,200 M/A 1 3.711.BOO STATt ATTi!AS CEPAJTkttTrr, - TAB 19 Stata Legislative 1 Regulatory Advocacy Padaratlon of Stata Chemical Associations Stata Initiatives Prograa Ho on 121 California Contribution DEFAjrTKBtTAL TOTAL' 4 994,100 1,111,900 TU 19 200.000 1 2.3*5.900 OfflCt Of GENERAL COW5D.I - TAB 110 Staff and Related Lagal Sarvleaa Third-Party Subpoena Jaaponee 1 Oafandant Litigation Outelda Purehaaad Sarvleaa Intallactual Proparty Inraranca Amicu* Briaf Prograa CKA Tort Litigation Croup Canaral Aalcua Prograa DEPARTMENT TOTAL' 1 1,990,900 376.200 1,312.900 37,300 TU 110 TAB 110 1 3.507.200 CCWJM1CATIOMS OCPAPTKCKT (ADVOCACY)I Madia Co-- umcatlona - TU 111 Targatad Jiiue s Kaaber Cj--unicatIon - TU 111 DEPARTMENTAL SUBTOTAL' CKA TRADITIONAL ADVOCACY tKPKASIS RROCMMS-SVMPIARY OUTAtACH j SEJVICt PROGRAMS' COMNJMiCATIOMS DEfARTKEHT (OUTREACH 4 SERVICES)r Jeaponaiile Cara Prograa TAi 112 Beipontibla Cara Public Outreach Prograa - TU 113 Targatad laiu* 4 Heabti CvauulcatlOA - TU 114 DEPMCTXOfT TOTAL' < 1.531.700 1,1)7,000 1 2.469.700 117.304.100 1 977.900 1,630.700 -0- 1 2.*SiA,4r>0 ippmad PT 91/92 budget 1 1, ISO.200 294,000 S3.IDO 435.300 111.BOO 330.300 140,900 727,900 >14,100 <7,500 15S.900 276,700 399.100 Projected rt 11/92 . Aeaulta 1 1,109.900 333,000 19,400 357,700 334,300 30*,900 901,400 471,700 434.900 70,000 234,100 197,100 374,200 521.300 290,000 I 3,772.900 517,300 203.000 1 5.733,100 4 294,400 214.900 191,000 >24.900 331.900 1,193,200 442,900 4,300 1 4.013.300 1 231,300 3>4,900 129,000 >49.300 437,300 1,791,900 499,900 91.900 1 3.770.300 935,900 1.474,300 TU 15 -0- 1 2,429,700 1 1,111.300 1,279.400 TU 19 -0- 1 3.197.700 I 3,073.300 >35.000 1,413.900 40,700 tu no TU 110 1 3.134.700 $ 2,104,500 125,000 1 .419,200 0- TU 410 TU 110 4 3.944.700 1 1.473,BOO -0- 1 1.475.900 117.346.400 4 1.434,000 -0- 1 1.454,000 117.220.300 f 1.029.200 10,000.000 1.303.700 112,232.900 S 1,027,700 9.930,100 1.240,600 112,231,400 Preliminary PT 92/93 Budget 1 133,400 346,400 31,000 412,400 101,700 413.300 793,900 421.900 970.200 9/A 213,200 144,400 339,700 979,200 9/A 4 3,942,400 293.900 241.300 134,100 142,100 435.400 1,425,300 595,100 102.000 1 3.911.100 1 1,154,700 1,217,900 TU 19 -0- 1 2.332.500 1 3.233.700 323.000 1.210.500 -0- TAB DO TU 110 1 3.719,200 I 1,221.700 1 1.226.700 17,124,100 1 913,400 10,000,000 1.373.500 *12.356,900 TECHNICAL SQVICLS PEPAPTWPfTi CHQfTAEC /CHEHN CT AMin 1 atratlon - TU IIS Chemical Rafarral Cantar ICK) - TU 113, pg. CHEHTAEC Aagiatration Tats - TU 115 CMDiSTU 01 via Ion - TU 111 CKD.STAA Panala CHDtSTAR Bualnaaa Council a OEPARTHDr? TOTAL (Hat of Ptranst) I 7B (JM ALLOCATE KAXACPCTT AHP SUPPORT' - TU lit fcrecutive Coordination and Simport Halting* and Convantlona Accounting and finance Bualnaaa Sarvleaa Coaster and Information Sarvleaa Printing and Dlatributlon UNALLCCATTO SUPPORT TOTAL' cm OUTPEACH C SERVICE PROCftAKS-SUmART TOTAL EXPENSES: 1 1.793.400 333,600 (1,244,100) [30.9001 TU 117 TU 111 > 763,000 4 2.473,400 344.B00 (2,300.000) -0- TU 117 TU 419 I 320,200 1 2,192.900 332.300 (3.300.000) (30.000) TA* 117 TM IIS 1 203.100 * 2,100,100 407.200 (2.300,000) *0- TAB 117 TAJ 119 1 207.200 * 1.337.900 313,400 699,400 316,300 796,200 331.600 1 4.014.700 1 7,391.300 124,990.400 I 1,412,200 313,100 700,400 339,900 920,300 475.700 I 4.132,300 S16.693.600 434.232,000 1 1.361.300 340.100 741,400 331,100 900.400 470.300 1 4.333.300 116.777,000 S33.997.300 1 1.644.300 347,300 111,000 394,700 940,300 437.400 4 4.607,000 117.171,100 <34,293.200 700976. 0375 VEX REVENUEs Maabrhip Paaa - TU 120 Pcaponiibla Care Public Outraach 'ii'iaHr.t-TAI 120 Investment Aavanua Responsible Cara Partnarahlp Aavanua Annual t Semiannual Halting* (Hat of Drpanaaa) Diract Prograa Revenue Aavanua from Spvelal Projects All Othar TOTAL GENERAL AEVEWUEr CONTRIBUTION TO (Us* Of) RESERVES ALTHCPJ2ED PERSONNEL ASSOCIATION RESERVES exp OP TEAA i General Operations Public Outraach 123,179,600 1 ,630,700 1.794,904 -0181,900 217,400 30,400 10,400 S?6.216,200 4 1^225^900 212 S 7,200.100 2.333,700 -3- 123.103.000 10,000,000 1,779,000 0" 170,600 327.000 -01.400 434.232.000 1 -0- 223 1 N/A 1 M/A 122.326.000 9.930,100 3.370,700 9,000 157,300 246,900 9,400 1.100 134,760.300 I 263.200 333 9 7,463,BOO s 2.7*3,100 S21.700.000 20,000,000 1,700,000 13,000 219.300 292.600 -01.100 S33.92I.OOO i mijjoo) 223 S 7,091.400 1 2.7},100 Chemical Manufacturers Association MEMBERSHIP FEE CLASSIFICATION (Chemical Sales Basis) Fiscal Year Beginning June 1, 1992 The following schedule of fees was established by the Board of Directors as provided under the CMA By laws Article IV, Section 2. Chemical Sales Calendar year 1991 SMIfiion Canadian Members Under- 10.0 to.o- 25.0 25.0- 50.0 50.0- 100.0 100.0- 400.0 Over- 400.0 Maximum Fee Membership Fee $ 7,500 $ 7,500 $ 10,000 0.0371%* 0.0339%* 0.0309%* 0.0277% $650,000 * Up to but notmore than the membership fee which would be obtained by multiplying the minimum amount of tie next higher chemical sales bracket by (he percentage factor applicable to the higher bracket and not less than $10,000. In addition to the above fees, the Board of Directors has established a mandatory .0131% assessment to a maximum of $307,400 to be applied to reported sales in support of the Responsible Care Public Outreach Program. -99- 700976.0376 YEX Chemical Manufacturers Association, Inc. DEFINITION OF "CHEMICAL SALES" A As revised September 13.1988, and approved by the Board of Directors, pursuant to Section 2 of Article IV of CMA Bylaws. For use by each member firm in determining and reporting calendar year "chemical sales" dollar volume to the Treasurer for the sole purpose of membership fee computation. A. DUES BASIS Dues shall be based on the sales of "Chemical Products", including domestic and export sales of products manufactured ir North America. Sales of products manufactured outside the United States, its territories or possessions, are excluded Interdepartmental or intracompany transfers shall not be considered sales except that transfers outside the specific partner ship, joint venture, corporation, division, or other unit of a corporation as approved for memberhip shall be considered a sale tc others and shall be valued at comparable "Market Value." B. DEFINITION OF CHEMICALS SALES Dues shall be assessed on sales using a three-tiered structure, in accordance with three different categories of chemical prod ucts, and dues levels. Dues shall be paid on 100% of Sales of Categoiy I Chemical Products as described in paragraph (1) below; on 50% of Sales of Category II Chemical Products as described in paragraph (2) below; and 15% of Sales of Category III Chemical Products as described in paragraph (3) below. (1) Category I Definition Category I Chemical Products shall include all products of chemical manufacturing operations, except those described below in Categories II and III. Examples are petrochemicals including aliphatic, cycloaliphatic and aromatic hydrocar bons and their derivatives such as alcohols, ketones, amines, ethers, aldehydes, esters, nitrites, amides and halides; or ganic and inorganic industrial chemicals such as acids, anhydrides, salts, caustics, sulfates, nitrates and halogens; organometallic compounds (such as tetraethyl lead) and polymers in unfinished form including plastics and elastomers such as polyolefins, polyvinyl chloride, polyacrylic, polyurethane, polyacetals, cellulosic polymers and styrene/butadiene rubber. (2) Category II Definition Category li Chemical Products shall include products whose manufacture involves a substantial operation not involving chemical synthesis such as fabricating, blending, formulating or extracting, especially when such operations raise signifi cant environmental or health issues. This group is not intended to include sales of final consumer retail goods, which are defined below as Category Hi products. Hence, the following examples pertain to industrial sales or sales of products in semifinished lorm, rather than retail sales. a. Paints, Varnishes, Lacquers. b. Inks, Polishes, Synthetic Waxes. c. Crop Protection Chemicals, except genetically-engineered products. d. Mixed Synthetic Fertilizers. (Individual components such as urea, ammonium and sodium nitrate and sulfate are considered Category I products. Blends of these individual components are considered Category II products.) e. Formulated Detergents. f. Molded or Extruded Synthetic Products. Examples: Bristles, combs, brushes, containers, and similarly fabricated plastic products; mechanical rubber goods; films formed by extrusion of materials such as saran, polyvinyl chloride, polyethylene and polypropylene. g. Chemicals extracted without chemical synthesis from natural sources such as coal and wood products. Exam ples: Creosote, turpentine, rosin, pine oil. ' h. Textile Fibers and Fabrics. Examples: Nylon, polyester, acrylic, cellulose acetate (including staple, yarn and tow) and knitted, woven felted and coated fabrics and floor covering. 700976.0377 i. Synthetic Rubber Products. Examples: V-belts and conveyor belts. VEX (3) Category 111 Definition Category III Chemical Products are those which meet the description of Category II Products set forth above, but which, in addition, are sold by CMA members in the same form as sold to ultimate consumers and include in their margins, a } large marketing, advertising, or retail distribution component. Examples include branded formulated detergents, tires, ! household paint, and pesticides sold to the final consumer. i ! C. EXCLUSIONS I` ! For the guidance of CMA members, several products which are not considered Chemical Products subject to fee are as fol: lows: 1. Resale Products (chemicals purchased for resale and sold as such.) 2. Direct Products of Wining Operations. Examples: Phosphate rock, fluorspar, barytes, ilmenite, coal, salt, borax, potash, natural salts, and limestone. However, chemical products, such as titanium dioxide and barium carbonate, resulting from the chemical processing of mining products, are meant to be covered as Category I Products. 3. Structural Metals and Their Alloys. Examples: Aluminum, chromium, columbium, copper, hafnium, iron and steel, lead, magnesium, manganese, nickel, tantalum, titanium, vanadium, zinc, zirconium, and all fabricated metal products. 4. Animal or Vegetable Products. Examples: Oil, fats, tallow, grease, animal glue, gelatine, glycerine, vitamins from natural sources, natural rubber products. (Synthetic fatty acids, synthetic detergents, synthetic rubber and synthetic glycerine, are considered to be Category 1 Chemical Products, however, and are not in the excluded group.) 6. Natural Fertilizers. i Refinery products from lube oil base stocks. Examples: Lubricating oils, greases, waxes, asphalt 8. Fuels. Examples: Coke, diesel oils, gasoline. (However, fuel additives prepared by chemical synthesis such as tetraethyl lead and MTBE are Category I products.) 9. Gases derived from air, except to the extent sold for use in the chemical industry. Examples: Helium, argon, neon, oxy gen and nitrogen. (All gases produced through chemical processes are considered Category I products. Example: chlorine gas.) 10. Equipment and Devices, including: a. Physical Facilities. Examples: Coke ovens, gas producers, electrolytic cells, sulfuric acid plants, cutting and welding equipment, tractors, mowers, sprayers, pumps. b. Devices. Examples: Fuses, blasting accessories; signals, jet perforators; ammunition, powder cartridges; cameras; photographic accessories, including light-sensitized film and paper, instruments; welding rods; batteries. n. Pharmaceuticals (including over-the-counter drugs), cosmetics, personal health care products and food additives. 12. Wood Products. Examples: Wood pulp for paper and rayon manufacture. `3. Tar, Asphalt and Pitch. `4. Products of genetic engineering. Examples: Recombinant DNA, monoclonal antibodies, interferon. 15. Ceramics, including powders and formed or molded components. -101- 700976.0378 VEX