Document rpnOBbNY3J7w3QqDeBJMG1jG7
To: 'Trish_Messenger@americanchemistry.com'
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From:
White, W. Claude <ClaudeWhite@Equistarchem.com>
Cc:
Bcc:
Received Date:
2001-06-11 18:00:37 GMT
Subject:
RE: Proposal to develop single VCCEP Consortium for BTX
Trish, do we have a benzene VCCEP call tomorrow? I've been out for two weeks and am far behind, but I do not have it scheduled. I have a couple of other commitments tomorrow so may have to miss the call. In case, here are my comments on the BTX consortium.
I think a consistent approach to volunteering by the BTX groups is of merit. There may also be some advantage in the dealing with API and some aspects of the exposure issue. However, we have concerns with the proposal and would have to know more detail to determine whether we have any interest. What does the proposed budget cover? Administrative overhead? The cost sharing proposal is also concerning. Depending on how the businesses are operated and the corporate structures there could be significant inequities in the proposal. On some level, the chemicals will have to be dealt with separately, and cost sharing should have a capacity/production basis.
At this point, our main concern is getting the benzene commitment solidified and bringing in all the on purpose benzene producers and importers. Have we had any responses from the other benzene producers/importers?
-----Original Message-----
From: Trish_Messenger@americanchemistry.com
[SMTP:Trish_Messenger@americanchemistry.com]
Sent: Friday, June 08, 2001 1:32 PM
To: szcagen@shellus.com; duttondr@bp.com; bondgp@cpchem.com;
DGHUNT@DOW.COM; Karen. M.Jones@fina.com; Kathleen.e.lanshe@usa.dupont.com;
norman.l.morrow@exxon.com; RAY_PAPCIAK@HUNTSMAN.COM;
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santrylj@novachem.com; dkos@sterlingchemicals.com; tortmj@cpchem.com;
cmparker@mapllc.com; kominc@kochind.com
Subject:
Proposal to develop single VCCEP Consortium for BTX
SHELL-MCCLURG-055126
As requested. ----- Forwarded by Trish Messenger/HQ/CMA on 06/08/2001 02:31 PM
Andrew Jaques
To: Trish
Messenger/HQ/CMA @CMA
06/07/2001
cc: ghbu@chevron.com,
duttondr@bp.com, jseastridge@shellus.com,
03:53 PM
rudy-breglia@sunoil.com,
Bhinric@CITGO.com, cmparker@mapllc.com,
mark_wine@kirkland.com,
rgingell@shellus.com, kominc@kochind.com,
karen.m.jones@fina.com,
MICHAEL_J_WAGNER@sunoil.com,
tortmj @cpchem.com,
j rcu@chevron.com, paul. j. reed @exxon.com,
dkos@sterlingchemicals.com,
jw.jones@ honeywell. com,
george.j.patterson@usa.dupont.com, mike.kaplan@usa.dupont.com, mhulse@shellus.com,
j rcu@chevron.com Subject: Proposal to
develop single VCCEP Consortium for BTX
Trish:
The following is a proposal that was generated on the T&X VCCEP call this
morning regarding the consolidation of benzene, toluene, and xylene into
one VCCEP consortium. Please forward this proposal to the Benzene VCCEP
group. I'd be happy to talk with anyone more about the issue.
Thanks, Andrew
Proposal for an Aromatic VCCEP Consortium
Background: On today's (6/7/01) conference call of the toluene and xylene producers, a proposal was brought forward to develop one consortium to handle the VCCEP sponsorship of benzene, toluene and xylene (BTX) - tentatively named the Aromatic VCCEP Consortium. This proposal was received very favorably by the companies participating on the conference call, many of which
SHELL-MCCLURG-055127
also participate on the Benzene VCCEP group. A single consortium was
felt to have several benefits over separate consortia including reduced
number of meetings, lower administrative costs, consolidated exposure review,
better ability to work with API, etc.
Budget/Cost Sharing: The group discussed a potential budget and cost sharing approach for the Aromatic VCCEP Consortium. The proposed budget was $100,000 for 2001 and $200,000 for 2002. All participating companies would pay an initial fee of $7,500 in 2001 to participate in the Consortium. In 2002, costs would be allocated on a major/minor producer basis. Major producers would pay two shares and minor producers would pay one share. The proposed definition of a major producer would be any company that produces or imports more than 1 million pounds of benzene, toluene and xylene (combined). It's anticipated that approximately 12-15 companies would participate in this consortium.
Next Steps: The participants on today's T&X call plan to raise the issue on the benzene call schedule for June 12, to see if there is interest. If there is, the new Consortium would work to develop commitment letter(s) and a Consortium commitment form for the VCCEP program.
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SHELL-MCCLURG-055128