Document zQGw2ngqg0QrjqBgL1oXZ4zyR

Hooker Chemical PLASTICS DIVISION Firestone Blvd P.0. Box 699 Pottstown, PA 19464 215 / 326-2000 TO: MR. R. K. RAUSCHER BATON ROUGE FROM: J. R. HOPPER POTTSTOWN DATE: JUNE 22, 1981 SUBJECT: DOW VCM METERING PROBLEM Per the attached please confirm the volume differences as proposed by Dow. If you are satisfied have your local management initial approval and return to me for Divisional approval. J. R. Hopper jRH/seh Attachment cc: Mr. J. J. McCoskey Mr. F. F. Hoy Mr. J. F. Knight OCC 017036 DOW CHEMICAL U.S.A. June 19, 1981 barstow building 2020 DOW CENTER MIDLAND, MICHIGAN 4BB40 Mr. Jin Hopper purchasing Manager HOOKER CHEMICAL AND PLASTICS CORPORATION Pottstown, PA 19464 received JUN22I981 J. R. HOPPER RE: VCM CONTRACT NO, 26898 The following are comments fran a meeting held in Plaquemine, Louisiana on May 1 between Hooker and Dow plant personnel. The objective was to discuss VCM volume differences through the pipeline measured by our companies separate metering systems, Dow's third party testing results conducted this year were also reviewed. Based on the discussions it is mutually understood that there will be some degree of difference in our measurements based on: 1. Expansion of VCM in the pipeline based on temperature differ ences. Also, some quantity may not be picked up by your meters at low flow rates. 2. Calibration limitations - Meter manufacturers state that practical limitation on metering accuracy is .5%. 3. Other factors including the use of temperature conversion charts, monthly "meter drifting" and possible by-passes in the line were discussed. A joint recommendation was made to resolve past volume differences based on the reports and discussions of personnel involved in the transfers. Final resolution has been held pending clearance of your April deductions and a reconcilation by our Customer Financial Services Group. A debit memo will be issued for $23,843.86 pending your final approval. This amount is based on the following: 478,008 lbs. - Hooker deductions from invoices - 337,750 lbs. - Negotiated deductions based on 50$ of the total difference between Hooker and Dow meter readings (675,500 lbs.) 140,258 lbs. x $.17/lb = $23,843.86 debit memo Attachment I is background information reconciled with Bob Roucher on May 7. AN OPERATING UNIT OP THE DOW CHEMICAL COMPANY OCC 017037 Mr. Jim Hopper June 19, 1981 Page Tro In the future we plan to continue our third party validation testing of our two turbine line meters to help insure accurate measurements. Your plant may be in the process of coordinating a similar third party test at your end of the pipeline. These tests, along with frequent communication between our plants, will keep us alerted to any significant differences in measurements. Fran a practical standpoint the operations personnel feel that accuracy of .5% on a monthly basis is within equipment capability and welcome the opportunity to periodically demonstrate the sufficiency of the stystem. Future billings will continue to be based on procedures outlined in our contract. We appreciate your support in resolving these past differences and look forward to you visiting Plaquemine in the near future. Thank you for your continuing business. John W. Boss Product Sales Manager Inorganic Chemicals Attachment (1) ml OCC 017038 ATTACHMENT I HOOKER VCM QUANTITY MONTH NOV '80 DEC '80 JAN '81 FEB '81 MAR '81 APR '81 DOW INVOICE 11,614,300 17,244,600 6,924,700 12,164,700 16,913,200 1,552,500 66,414,000 HOOKER READING (MOnTHDY) 11,502,200 17,098,500 6,810,300 12,038,900 16,752,700 1 ,535,900 65,738,500 DIFFERENCE 112,100 146,100* 114,400 125,800 160,500 16,600 675,500 K> DIFFERENCE 0.965 0.853 1 ,412 1 .034 0.958 1 .069 1 .01 HOOKER DEDUCTION FROM INVOICE 77,510 94,710 69,162 90,652 115,089 30,885 478,008 Per Bob Roucher 5/7/81 OCC 017039 JWB/ml:5/5/81 {%}% (&>()%>- '/TntuzJsp/?- (Cf^njt^ v Ihs z lbs (7 ' /% , / 7 _JV<4 A+U*^*^**/ "lAjtrfZvj 00^44^4*^^ 6 7t - fif " >I)S >. 0.^ > (V/^/4') o sij&lrl: ' /p-V^ /l"<'*</ JAK^jhsyj ^l^t\ *- /*- 0<*r JL $'(?. ' ijij%\ f>v i?,J7. - $f#). a^I/ -4*ns& JL /$Jk, sh fa / ^/^/f/ i^// f^v 7fU*J$. H iji12 v*t/ $*+ (m&> - A&jki ,( OCC 017040 J. R. HOPPER 5/1/81 Has the Dow VCM metering problem at Baton Rouge been resolved? J. J. MC COSKEY RECEIVED m i 1981 * *i I i < OCC 017041 4 INTER-OFFICE CORRESPONDENCE Distribution NAME n-titfay 5, 1981 LOCATION Pmm R. K. Rauscher Addis NAMi LOCATION Rubiaet Meeting at Dow Chemical -- May 1, 1981 Hooker Chemical PLASTICS DIVISION Copy to: DISTRIBUTION Messrs. P. P. Hoy J. J. McCoskey R. W. Swalley M. V. Handler J* V. Lessig VrtD H' . \dol Q jh -i ^ ihs /yu ^CC'141 OCC 017042 Hooker Chemical PLASTICS DIVISION Highway #1 at East Sid Richardson Road P 0 Box 8 Addis. Louisiana 70710 504 7 383-6297 May 5^ Subject: Meeting at Dow Chemical -- May 1, 1981. Meeting held on May 1, 1981, at Dow Chemical Plant in Plaquemine, Louisiana. In attendance were: John Boss -- Dow Chemical -- Sales -- Midland Ed Hearn -- Dow Chemical -- Sales -- Houston Ed Port -- Dow Chemical -- Sales -- Baton Rouge Paul Rozas -- Dow Chemical -- VC Plant Manager Hank Sinclair -- Dow Chemical -- VC Plant Superintendent Chuck Kazmierski -- Dow Chemical -- VC Loading Supervisor Mike Handler -- Hooker Chemical Bill Lessig -- Hooker Chemical Bob Rauscher -- Hooker Chemical This meeting was held to resolve past discrepancies between Hooker meter readings and Dow meter readings and establish guidelines for future vinyl transfers and meter billings. Dow briefly discussed their metering system and explained that it consists of 2 Poxboro turbine meters and a meter proving station. Dow proceeded to show their metering system to us and explain how their meter proving station works. Basically the meter proving station consists of additional piping that enables Dow to pump vinyl through calibration equipment after the vinyl has passed through two turbines meters. The calibration equipment verifies the accuracy of the turbine meters. Dow presented the meter proving results. These results are the average of three tests for one meter but the results for the other meter are similar. The results are as follows: March 19 March 25 April 24 Meter Factor .9924 Meters adjusted using New K factor .9981 Foxboro claims the turbine meters have an accuracy of + or - .5% and as April 24, 1981, Dow meters are now within factory specifi cations. Dow also stated that they will continue to prove their meters on a monthly basis and later switch to longer intervals. HOOKFP '.'"SMICALS & PLSTI(,S CORO OCC 017043 Hooker Chemical PLASTICS DIVISION Highway #1 at East Sid Richardson Road P O Box 8 Addis, Louisiana 70710 504 /' 383-6297 Dow proceeded to list by month the differences between HCFC meters and Dow meters from November, 1980 through March, 1981. It was noted that starting in January, Hooker switched to a fiscal month that ends on the 25th and as a result HnoVg-p and Dow monthly figures do not agree after December. It was noted that in total we should agree and it was decided that April 30,would be the cutoff date. Attached is a summary'"or differences as compiled by HOOker. Dow stated that they have spent a lot of time trying to resolve this matter and are anxious to resolve past discrepancies and establish guidelines for future vinyl transfers. Hooker stated that they too have spent a lot of time on this matter and are anxious to resolve past discrepancies and establish guidelines for future transfers. Dow listed by month the percentages of difference and noted that they were the greatest during the months when Hooker shut downs occurred and vinyl was not transferred on a regular basis. This led to some discussion on the effect of expansion in the vinyl pipeline. Both parties agree that expansion in the pipe line contributes to the differences but are unable to determine to what extent. Dow proposed that for past discrepancies between Hooker meter readings and Dow meter readings, that we split_the difference. This was generally acceptaoie to all parties but Hooker advised Dow that home office approval was required. Dow stated that they would like to obtain the approval of Mr. Richardson in Midland. Dow briefly discussed the procedure for clearing up open items. Dow proposed that Hooker pay all open items on past invoices and Dow would then, issue credit for half of the total difference. Hooker proposed that Dow issue internal credits to eliminate open amounts and-invoice for open amounts.- ^ Sf Dow also proposed that in the future the Dow meter reading be accepted for determining billing quantity. Dow stated that their 1 meter has been proven to be accurate and that they will continue to prove their meters on a regular basis. It was noted that Hookers meters are not recently certified and do not properly record vinyl transferred through expansion. Dow's proposal was accepted in principle but again Dow was advised that home office approval was required. HOOKER CHEMICALS S, PLASTICS CORP Su8' J 0C iW COP OCC 017044 Hooker Chemical PLASTICS DIVISION Highway #1 at East Sid Richardson Road P O. Box B Addis. Louisiana 70710 504'/ 383-6297 The meeting was closed, with Hooker agreeing to relay the Dow proposals to the Pottstown office for approval, and reply to Ed Fort in Baton Rouge. R. K. Rauscher RKR/dg Attachment HOOKER CHEMICALS & PLASTICS CORP OCC 017045 Hooker Chemical PLASTICS DIVISION H i ighway #i at East Sid Richardson Road .0 Box 8 Iddis, Louisiana 70710 04 7 383-6297 {iJ November December January February March April April HCFC 11,502,283 17,098,594 3,812,002 15,438,134 15,870,898 2,885,392 1,131,473 DOW/ VCM ADJUSTMENTS ADJ. HCPC DOW 11,536,790 17,149,890 3,823,438 13,478,448 15,918,511 2,894,048 1,134,867 11,614,300 17,244,600 3,892,600 13,569,100 16,033,600 2,918,400 1,141,400 65,738,776 65,935,992 66,414,000 DIFFERENCE 112,017 146,006 80,598 130,966 162,702 33,008 9,927 ADJ. DIFF. 77,510 94,710 69,162 90,652 115,089 24,352 6,533 , 675,224 478,008 675,244 lbs. +2 = 675,224 - 478,008 = 337,612 pounds 197,216 pounds paid 140,396 pounds open ^ /*7 These are Hooker calculations and they have not been confirmed or accepted by Dow. HOOKER CHEMICALS L PLASTICS COR fc.j8S!D`AC'. o* C>rCiD*'A* Cd*caOfU'iC** OCC 017046 OCC 017047 /4$n/ uM*4 fs-si X )H) no X 61, /62- r fr-TZ. X O-r; <5 X 3?, <f fj" X . 17 , *7 ,77 .n .17 . /tf 13 nt. iq t ) <30,1 <? */ 7JT7, 5-*/ )-T, **/ $ , )<\) 13 SfSS^. 30 *8i,syo ,i\ OCC 017048 MX 0 - // jfp f <?oT * K< fj. . -i ^A^/jtruxf - <y ;:tf. y~ C^tr y^ O- yy^iscs - fm+y% n ^w* A dJif ` -4 . *?+ / ^<yp, /I'ka. ~ Q^w J^, sixs*Sjp OCC 017049 Hooker Chemical PLASTICS DIVISION Firestone Blvd .0 Box 699 ittstown, PA 19464 T5 / 326-2000 X, TO: FROM: DATE: MR. R. K. RAUSCHER BATON ROUGE J. R. HOPPER POTTSTOWN MARCH 25, 1981 ; DOW VCM METERING DISAGREEMENT Mr. John Boss of the Dow corporate office advised today that Dow would like to meet with you and your management the week of April 13 to demonstrate their meter proving station. When contacted by Dow please coordinate the scheduling of this meeting and keep Pottstown informed of the results. I advised Mr. Boss that you and your local management must be satisfied prior to finalizing any past meter reading/billing discrepancies. J. R. Hopper JRH/seh cc: Mr. J. j. McCoskey Mr. C. J. Kleinert Mr. F. F. Hoy - Baton Rouge Mr. R. W. Swalley OCC 017050 TO: MR. HOPPER FROM: SUE Please Note & Return For Approval For Signature REMARKS: 3/24/81 4:45 p.m. JOHN BOSS AT DOW WOULD LIKE YOU TO CALL HIM AT (517) 636-1065 if -- sk, f>.p , OCC 017051 Hooker Chamical PLASTICS DIVISION Firestone Blvd P.0' Box 699 KPottStOwn, PA 19464 Sl5 / 326-2000 TO: MR- R. K. RAUSCHER BATON ROUGE FROM: J- R* HOPPER POTTSTOWN DATE: MARCH 13, 1981 SUBJECT: DOW VCM METERING DISAGREEMENT Dow, Midland, advises that the electrical interference problem has been solved and March 19, 1981, is the date scheduled for the calibration team to complete the meter proving station on Dow's end of the pipeline. It is critical that their metering be accurate as the contract language specifies invoicing per their meter readings. Once we are satisfied accurate meter readings are being recorded, your local plant management should mutually agree with Dow. upon a periodic calibration schedule. Any Dow claims regarding past meter reading discrepancies are not to be resolved locally but must be solved at the division level. Mr. J. J. McCoskey Mr. C. J. Kleinert Mr. P. F. Hoy - Baton Rouge ^ Mr. R. W. Swalley OCC 017052 HOOKER CHEMICAL ADDIS LOUISIANA 3/5/81 ATTN J P HOPPER J J NC COSKEY RECEIVED WAR _ 6198) J- R- HOPPER DOW CHEMICAL HAS CONDUCTED NETEP. PROVING TESTS OK THEIR METERS AND THE RESULTS ARE "INCONCLUSIVE". DOW WILL RERUN TESTS IN A COUPLE WEEKS. AS OF FEBRUARY 25, 1981, WE HAVE ADJUSTED DOW INVOICES FOR A TOTAL OF 332,03A LBS. THESE ADJUSTMENTS COVER THE PERIOD OF NOVENEER 1*80 TO FEBRUARY 1981* WE ARE STILL EXPERIENCING KETER DISCREPANCIES THAT EXCEED jrf PERCENT. PLEASE ADVISE HOW TO PPCCEED. RK CORrECTON............ SECOND TO LAST LINE SHOULD READi EXPERIENCING KETEP- DISCREPANCIES THAT EXCEED l PERCENT. FLEASE ADVISE HOW TO PROCEED. R K RAUSCHEP HOOKER CHENICAL ADR I c LA occ 017053 /^/ fl. 0*1 \ : `iCjOCulh S A, /7 MsXfip W/X <y\ 'T*4C*U--- ' 3 /^r _. Jh*-*\ ' SW(E_ ,, Jr* -f* X^-X IXXX 7 7/p u, r /?_*c 9H -}/(.iA f t >'< fSc'x . 6, * -. t' Jiff"___ ,A$JjULjbJ ^--------- -- ^uir ---- f -- a^(r&l4,-- cJofij fj?0SX Jpfet/^j . ---------- - ------- -- ------ -------------------- ------------------------- ------------------ -------------- ' ^ ^ "* -- ---------- -- ^fcoxy 2j__ <tj*x ^ L -cWtf . . , . .-- ------ .. .. -Oo**y ^1 /wJjm. o*r\u (^cJlaJxX X*-*&X+j i) ) Awf /wZL, ^ -- f- -- /T OCC 017054