Document v1jJ8jq3441owpYyOqYwrn8G8
N A 3000 REV. 1 1-69
11-69
REQUEST AND AUTHORITY FOR CAPITAL
EXPENDITURES / RETIREMENTS
DIVISION OR, COMPANY
Organic: Chemicals Dept.
LOCATION
Ji Oi c o n t r o l p o in t
REPORTING CLASSIFICATION j 3 -1_
DATE APPROVED
4/2/79
JOB ORDER NO.
0C-4590
SUMMARY OF AMOUNTS
DESCRIPTION
LOCAL CURRENCY
ESTIMATED PROJECT* COST
U.S. DOLLARS
si son
flvi rpnn P-1 pm4-
JOB TITLE "
0 97
Purchase Carbon Dioxide Vessel
DISMANTLEMENT" EXPENSE TRANSFER EQUIPMENT
GROSS AMOUNT FOR APPROVAL , L-ESS TRANSFER EQUIPMENT
$1800 1
LESS 'iAL^AQE OR TRADE-IN ALLOW.
ETN CASH! :REQUIR:^0 {g o f * 3027)
SI POO 1
RETIREMENT DATA
ECONOMIC JUSTIFICATION
REVISION DETAIL (c r o s s a mt .s .i
AMOUNT
' 6-YEAR AVG.
REV. ' iDATE
Amo u n t
CUM. AUTHOR! ZATION
COST DISMANTLEMENT
NET SALES NET SAVINGS BEFORE TAXES
-T -_J>
1 2
LESS SALVAGE
n e t AFTER TAXES
% ROI (ON TOTAL INVEST.)
PAYOUT YRS.
2. ^ c 'T
1 T1
3 4
S
t o t a l - c h a r g e Re s e r v e
6
DESCRIPTION ANO REASONS REQUIRED
Funds of;------------------------------------------------------------------------------------------------------------$1800 are requested to inspect and purchase the plant's leased liquid carbon dioxide storage vessel.
SUMMARY OF ESTIMATED COST - Details on GOF-3027
ITEM NO.
DESCRIPTION
See attached - i.
'
ESTIMATE NO.
STARTING DATE
7/1S/79
MATERIALS
LABOR
COMPLETION DATE
ENGINEERING
TOTAL
1200
400
200
1800
ITEM NO.
$1800NET CASH REQUIRED
ACCOUNTING TREATMENT
1200
400
200
1800
RECOMMENDATIONS AND APPROVALS (c h ec k s o x )
DEPR.RATE
.. NAME
PROJECT'S PONSOR
REC, APPR. '
DATE
f* 7/
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44//77
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________ :________ ________
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____....... ________
ACCOUNTING TREATMENT / ECONOMICrARP^WD BY OIV. CONTROLLER pHECK BOXiES^f
D JET /C'V'-VsTva.oflTE
POST AUDIT PERIOD
POST AUDIT OUE^^p^' // /
a
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GENERAL MANAGER
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DISTRIBUTION
VICE-PRESIDENT
004590 4/2/79 Page 2 of 5
DESCRIPTION AND REASONS REQUIRED
A. Proposed Work and Cost
Funds of ------------------------------------*-------------------------------------------$1,800 are requested to inspect and purchase the 25 ton liquid carbon dioxide storage tank which is now leased from the Liquid Carbonic Corporation.
B. Present Situation
Carbon dioxide is required for the manufacture of all Cyastab lead carbonate heat stabilizers, as well as. for suppling.an inert atmosphere during grinding of'/the dibasic lead phosphite stabilizers. Carbon dioxide is also piped throughout the plant for emergency use in fire control. Annual usage of carbon dioxide is 552,000 pounds. The liquid carbon dioxide is pumped into and stored in a leased twenty-five (25) ton storage tank mounted on the roof of building 19. The current monthly rental is $165.00, but if the tank is not purchased at the expiration of the lease (April 1, 1979), the monthly rental would be $400.
C. Justification
The plant is budgeted to produce 3,835,000 pounds of lead carbonates and 414,000 pounds of lead phosphites in 1979.
In order to produce the above stabilizers, carbon dioxide is required. Purchasing the vessel will save $4,800 per year in rental costs.
D. Commercial Factors
This order supports a plant budget as follows:
Year 1978 actual
Sales-Pounds
Sales-Dollars
Profit on Sales
9,582,000
$4,921,000
1,331,000
(27%)
Budget for 1979
Sales-Pounds
Sales-Dollars
Profit on Sales
8,650,000
$4,512,000
1,548,000
(34%)
CYWI 24-0006307
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2- -
004590 4/2/79 Page 3 of 5
E. Details pjE Proposal
The carbon dioxide tank will be purchased per the lease agreement after inspection by the Hartford Inspection and Insurance Company. All safety equipment will also be tested.
F. Production Factors
This proposal will not alter product quality or production rates.
G. Contingent Future Commitments
This proposal will not require additional funds to complete.
H. Alternatives Considered
It is more economical to purchase the leased equipment now, than to continue leasing.
I. Risks No operating risks are involved.
J. Concise Summary
Purchase of the leased carbon dioxide vessel is the most economical way for the continued production of the carbonate and phosphite heat stabilizers.
CYWI 4-0006308
pfflMTf.
GOP-'3027 REV. 7/82
7/62
DETAIL SHEET
SHEET WQ.
JOB ORDER NO.
COMPANY
American
ITEM OR
COQE NO.
Cyanamid
Company
DESCRIPTION
LOCATION
Chicacro
EQUtPM ENT OR
ma t e r i a l s
0C-4590 4/2/79 Page 4 of 5
2/28/79
ENG. MECH.
SVC.
1. Purchase carbon dioxide vessel
.2 Inspection and testing costs
3. Illinois Use and Sales Tax
850 300
50 1200
400
200
400
200
1050 700 . 50
1800
CYWI 24-0006309
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_r\ '-o -~', r\ t t " r*T 7
527 SOUTH JurrSHSCN STREET - CH-.CAC
ILLINOIS 60607
AREA CODE
OC-4590 4/2/79 Page 5 of 5
ADDENDUM "A1
------iie_terrr._.og^thj.s leas2 shall be five (5) years -commend no r,-
"aate of installation oftHe Stolr5^eTSqupTf^d
"
The rental for--fcrrC full term of this lease shall be $2 30,00 per month payable net ten (10) days from the date of LESSOR'S invoice. LESSEE shall pay tpoLESJSOR in addition to the rental provided herein all charges which may be imposed by any governmental authority for sales or use taxes or any other similar tax upon the lease of the Storage Equipment hereunder.
LESSEE is granted the option to renew this lease fpr an additional three (3) year terra at a rental of $165.00 per month. If LESSEE shall exercise this option, the LESSEE is granted the further option to pur chase the Storage Equipment'from LESSOR upon the expiration of the three. (3) year term for the sum of $S50.00 together with all charges which may be imposed by any governmental authority for sales or use taxes or any other similar tax upon the sale of the Storage Equipment hereunder. Such sale shall be without warranties of condition or fitness for use and the Storage Equipment shall be sold as is and where is. LESSEE shall exercise its option to renew this lease by written notice to LES SOR at the address shown above forwarded by certified mail not later than ninety (90) days prior to expiration of the five (5) year term; and LESSEE shall exercise its option to purchase the Storage L'cvipmont by written notice to LESSOR at the address shown above forwarded by cer tified mail not later than ninety (90) days prior to expiration of the three (3) year term. '
Signed at fh1cano . Illinois
c?n March 15
19
7.1
[ 'aoGro~ior Lend Ccmpany ^(Lessee-1 s Name)
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Pms i dent.
MKsweunraoenrs:
Accepted at Chicago, Illinois on r* 5 5 19 1\
LIQUID CARBONIC CORPOiUYi'JON
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CYWI 24-0006310