Document zzq8ModQyyDM5pwgME7DRnXYm

csArc. rii-c. Stone 8 Webster Engineering Corporation 90 Broad Street, New York 4 NEW YORK BOSTON CHICAGO HOUSTON CTTMUROH LOS ANGELES SAM FRANCISCO _______ *. April 2, 1948* ----------------------- Mr. J. H. Schaefer, Tie* President Ethyl Corporation Baton Rouge, Louisiana* J.O. 7888 and 8027^ + Toj 1 F ETHYL ABD VIEIL CHLORIDE PACTLTTTTa Dear Mr. Schaefers As discussed in our meeting at Baton Rouge on April 9th, ve are outlining herein our suggested arrangement for terminating our activities on the Ethylene Plant, our J.O. 80271 and Vinyl Pilot Plant, our J. 0. 8027F, since you have deferred their construction and removed them fro* the scope of the vork under the Expansion Program. Our services for engineering, drafting, inspection and ex pediting hare been segregated for each of the jobs in the Expansion Pro gram and the amount expended at salary rates for the Ethylene Plant will be determined. Ve propose that an equal amount to cover our administrative and incidental costs be paid us in addition to a Class "C* fee which, in vie* of the fact that the total work now contemplated under the Program is in ex cess of $15,000,000, weld, be 3^ of the Cost of the York vhich mould include direct pay rolls, the KX> overhead allowance on these and any other costs end expenses applicable to J.O. 8027X. Similarly, ve propose that the Vinyl Pilot Plant be treated in the same manner except that in this ease the Cost of the Work to vhich the Class *C* fee would apply vonld also include any equipment and materials pur chased for this plant on which delivery has been taken and such cancellation charges as there may be* Xou will, of course, realise that the fee will be a relatively small amount in either ease. Prior to your authorisation to proceed with, the work under the Expansion Program, ve had made a design report and economic studies on the facilities for the Ethyl Chloride Area, including the Ethylene Plant, Ethyl Chloride and Ethylene Bichloride.Plants under our J.O. 7880* This SAFE FiLE Hr, Jm H. Schaefer April 23, 194B vatic was performed wider Part A of the Tern Contract end was hilled at per diem xatea for the engineering services. Aa provided in the Tea Contract, these services, upon your authorisation for construction, were to be reduced to two-thirds per diem vhleh would now be applicable to that part of the services pertaining to the Ethyl Chloride and Ethylene Bichloride Units which are still a part of the Expansion Program. However, since our record of the actual tine spent on this work was not segregated -between the three individual phases of the study, ve cannot determine specifically what part of`the1"ser vices applied to the Ethylene Plant which is no longer included in the program and although ve estimate that approximately half of the tine was devoted to this plant, ve propose to reduce all of the per diem charges to the two-thirds heals which will result in a credit to yon of epproxlnately $3,300. If the foregoing meets with your approval, will yon kindly so signify as provided below and return one copy for- our files. Tours very truly. Karl Finsterbusch Tice President.