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# OAR Box 1477 Prepped by Ollie Stewart



## Document

Number: 

# 22 ) II-J-1 3 Docket Number: 

# A-94-5 2

Printed 7/31/200811:18:29AM Sheet 22 of 36P. 2 

# tr- T - 

# 3 From : Kell

y DeBusk <sailer@naxs.com

> To : KEITH BARNET T <BARNETT.KEITH@epamail.epa.gov> Date : 1/9/0

0 3:15p m Subject : Smal

l Busines s OutreachMeeting

CC : Austi

n Pere z <Austin.Perez@sba.gov>P. 3

» <

Decembe r 29 , 199 9 To : KeithBarnet t Environmenta l Enginee r Organi c Chemical s Grou p (MD-13 ) Researc hTriangl e Park , N C 2771 1 From : Alle n DeBus k Genera l manage r Appalachia n Plastics , Inc
. 3400 1 Glov e Driv e P O Bo x 104 4 Glad e Spring , Va
. 2434 0 Subject : Respons e fro mSmal l Busines s Outreac hMeetin g

Dear Keith , Ther e wer e severa l issue s brough t u p i n th e Smal l Busines s Outreac hMeetin g o n Decembe r 14 , 199 9 that w e feel woul dhav e asignifican t impac t o n th e existenc e o f

manufacturer s th e siz e o f Appalachia n Plastics , Inc
. I hav e include dsom e potentially disastrou s scenario s tha t woul dhav e asignifican t economi c impac t o n existin g businesses
. I kno w that yo u ar e suppose dt o conside r technica l reason s rathe r

tha n economi c ones , however , ther e i s apoin t wher e economi c consideratio n become s atechnica l matter . Appalachia n Plastics , Inc
. i s i n a n aggressiv e growthtransition
. Thi s require s u s t o carr y alo t o f debt
. W e anticipat e havin g t o borro w mor e mone y a s w e attemp t t o expan dcapacity
. If

ou r growthtrigger s Ne w Sourc e MACT , the n I a mafrai dw e wil l no t b e abl e t o affor

dt o grow . Ifth e floor s ar e se t a s yo u hav e proposed , the n ther e i s an extreme possibilit y that w e woul dhav e t o clos e ou r doors
. W e coul dno t

affor d interruption s i n productio n an dstil l mee t our existin g financial obligation s t o th e bank
. I hav e include da brie f tabl e ofth e company' s finances fo r th e pas t eigh t years . A s yo u can se e ther e i s no t alo t o f extr a mone y for

control s o r

th e operatio n o f

controls
. W e ar e i n th e proces s o f gettin g an estimat e o n th e capito l an doperationa l cost s o f

controls , an dI wil l forwardthat informatio n t o yo u a s soo n a s possible
. Yo u are alread y awar e ofth e uniqu e produc t w e mak e that

require s th e us e of asixty-percen t HA P resin
. Th e propose dstandar dwil l no t allo w Appalachia n Plastic s t o produc e thi s produc t unde r certai n circumstances
. W e hav e investe dour whol e future i n thi s produc t an dth e curren t

deman di s highe r

tha n anticipate daheady
. W e nee daprovisio n that wil l allo w u s t o continu e t o manufactur e thi s product
. Th e actua l financia l report s for th e pas t eigh t year s can b e mad e availabl e i f yo u woul dlike t o se e them
. Than k yo u for you r consideration
. Sincerely , Alle n DeBus kP. 4

I . Poin tValu e Feasibilit y A
. NS F 1 ) Th e non-fire retardan t vinyleste r

resin s (Hetro n 92 2 an dDerakan e 411 ) ar e use dt o manufactur e wate r treatmen t

equipment
. Thi s equipment i s require dt o hav e a n NS F(Nationa l Sanitatio n Foundation ) listing
. W e hav e recentl y discovere di t i s likel y that

NS Fwil l no t

approv e th e lowe r HA P resins
. W e hav e initiate dth e proces s o f gettin g i t approved , bu t

thi s proces s wil l tak e eigh t t o nin e months
. I f

w e ar e unabl e t o switc hthi s resi n t o th e lo w HA P resin , w e woul dlikel y b e ou t o f complianc e b y th e year

2002
. B . Clas s I Flam e an d Smok e Rate d Ductin g 1 ) Appalachia n Plastics , Inc
. spen t te n year s an dove r

$100,000.0 0 developin g thi s product
. W e hav e committe dou r

future growtht o th e marke t for thi s product
. Thi s produc t utilize s a resi n that ha s a60 % HA P content . I t canno t b e modifie dan dstil l achiev e th e propertie s o f aClas s I Flam e an dSmoke composite
. I t i s th e onl y non-phenoli c composit e that ha s obtaine da Clas s I rating
. I t

i s suitabl e for

man y environment s wher e phenolic s ar e not . C
. Coa l Strik e 1 ) W e hav e ra n th e poin t valu e calculation s for

th e las t tw o years . O n th e surfac e it woul dappear that th e poin t syste mwork s very favorabl y fo r ou r company . Thi s i s becaus e w e proces s a significan t

volum e o f

29 % HA P resin
. Unfortunately , 10 0 percen t ofthi s resi n i s use dt o manufactur e ventilatio n fo r th e coa l mines
. W e hav e no t foun danothe r

produc t that can b e manufacture dsatisfactoril y withthi s resin
. I n th e even t of astrik e i n th e coa l fields ou r processe s becom e immediatel y ou t o f compliance
. Th e curren t contrac t betwee n th e Coal Operator s an dth e Unite dMin e Workers Unio n expire s i n 2002
. 2 ) Althoug hou r

tota l emission s woul db e drasticall y reduced , ou r rat e o f emission s woul dforc e u s t o clos e ou r

doors
. W e were nearl y bankrup t b y an eleve n monthcoa l strik e i n th e earl y seventies
. That

i s whe n w e mad e th e decisio n t o pursu e othe r markets
. W e n o longe r

wante dt o b e entirel y dependen t

o n th e unstabl e coa l industry
. Eve n thoug hw e hav e establishe dothe r market s t o kee p u s goin g i n th e even t of acoa l strike , thi s standar dwoul dpreven t u s fro m servin g ou r

othe r markets
. Thi s standar dmake s u s totall y relian t o n th e coa l industry onc e again
. 3) Fo r an example ; W e hav e take n ou r actua l tota l processin g fo r th e montho f

Novembe r

an dran the mthroug hth e poin t

calculation s (Maximum Point Value 171.6) (Calculated Point Value 160.26) an dthe n ran th e sam e number s a s i f th e mine s ha dbee n o n strike
. (Maximum Point Value 170.08) (Calculated Point Value 180.51) Thi s woul db e th e results , onl y i f w e processe d th e sam e amoun t

o f non-min e relate dproduct
. I n reality , w e woul dhav e processe dmuc hmor e ofth e non-min e relate dproduc t du e t o th e windo w i n productio n cause db y th e strike
. Th e increas e i n othe r

productio n woul dpu t

u s eve n farther

ou t o f compliance
. 4) Th e abov e scenario s ar e example s ofth e detrimenta l short ter meffect s thi s standar dwoul dhav e o n us . Th e lon g ter meffect s ar e jus t a s detrimenta l i f

no t mor e so . Th e coa l relate dmarke t i s a declinin g market
. A s ne w technologie s ar e develope dan dcoa l resource s ar e depleted , th e deman dfor

ou r typ e o f ventilatio n decline s every year . I n five years , withjus t th e projected increas e i n ou r

Clas s I busines s an dou r

projecteddecreas e i n ou r min e relate dbusiness , w e woul db e ou t

o f complianc e after

havin g use dal l ofth e feasibl e reductio n method s mad e availabl e t o us .P. 5

5 ) Possibl e Solution s a) . Poin tBankin g 1 . Woul di t

b e feasibl e t o accumulat e points ? Fo r example: I f

afacility operate s fo

r 1 2 month s at 1 0 point s unde r

th e floor, coul di t

the n operat e 1 2 month s at 1 0 point s ove r th e floor? Thi s woul denabl e acompan y t o accep t ahig hvolum e contrac t

withou t havin g t o sto p ifth e floo r wa s abou t

t o b e exceeded
. (Th e Semi-conducto r an dPape r Mil l industrie s typicall y orde r larg e quantitie s o f

produc t i n short tim e frame s generall y requirin g hig hHA P resins. ) b) . Abov e th e Floo rWindo w 1 ) Som e facilitie s coul dpossibl y b e operatin g righ t at th e floo r an dthe n hav e a n interruptio n i n th e marke t plac e o r productio n tha t

woul dcaus e the mt o g o ove r th e floor
. Coul dther e possibl y b e awindo w tha t woul dallo w facilitie s t o operat e abov e th e floor for aperio do f

tim e du e t o thes e type s o f interruptions ? Suc hawindo w coul dpreven t

afacility fro mhavin g t o abruptly sto p operations
. c)
. Ge l Coatin g 1 ) Th e propose dfloo r

for ge l coatin g doe s no t

see machievable unde r

an y circumstances
. Th e bes t

ofth e bes t

i s apparentl y atu b an dshowe r facility , buildin g produc t tha t i s neve r expose dt o ultr aviolet

degradatio n withaspecia l blende dge l coat that i s tailo r mad e for thei r process . Appalachia n Plastic s manufacture s gel

coate dwate r

playgroun dequipment

that i s constantl y expose dt o hig hlevel s o f ultr a viole t light
. W e pa y at

leas t 9 0 cent s apoun dmor e for ahig hHA P ge l coa t

becaus e o f it s superio r

ultr aviolet

properties
. I s i t

possibl e t o creat e sub-categorie s fo r indoo r an doutdoo r

ge l coat service ? II . Economi c Feasibilit y t o Installin g Captur e an d Contro l
A . Curren tDeb t 1 ) Mortgage : $653,00 0 2 ) Operating : $115,35 0 3 ) Parkin g Lot : $125.00 0 4 ) Tota l Debt : $893,35 0 Profi t An d Los s 1 ) Sales : 2 ) Cos t o f Sales : 3 ) Operatin g Expenses : 4 ) Interes t Gain/Loss : 5 ) Profi t Befor e Taxes : 6 ) Les s Taxes : 7 ) Ne t profit : 1991-9 2 $ 1,259,980.0 0 $ 891,837.0 0 $ 329,693.0 0 $ 2.712.0 0 $ 35,738.0 0 $ 1.212.0 0 $ 34,526.0 0 $

$ $ $ $ ? 

### $ 1992-9 3 1,466,589.0 0 927,428.0 0 421,236.0 0 (1.231.00 ) 119,156.0 0 32.307.0 0 86,849.0 0 $

$ $ ? $ $ 

### $ 1993-9 4 1,995,524.0 0 1,438,282.0 0 405,976.0 0 1.451.0 0 149,815.0 0 45.331.0 0 104,484.0 0 $

$ $ $ $ $ 

### $ 1994-9 5 2,304,634.0 0 1,632,429.0 0 484,546.0 0 2.319.0 0 185,340.0 0 68.058.0 0 117,282.0 0P. 6

Profi t An d Los s 1 ) Sales : 2 ) Cos t o f Sales : 3 ) Operatin g Expenses : 4 ) Interes t Gain/Loss : 5 ) Profi t Befor e Taxes : 6 ) Les s Taxes : 7 ) Ne t profit : $ $ $ $ $ $ $ 1995-9 6 2,305,499.0 0 1,804,990.0 0 519,008.0 0 2.295.0 0 (20,794.00 ) (1.981.00 ) (18,813.00 ) $

$ $ $ $ $ 1996-9 7 2,524,357.0 0 1,669,300.0 0 767,902.0 0 14.501.0 0 72,654.0 0 21.165.0 0 51,489.0 0 $

$ $ ? $ $ $ 1997-9 8 2,778,954.0 0 2,044,038.0 0 763,263.0 0 10.783.0 0 (39,130.00 ) (5.344.00 ) (33,786.00 ) $

$ $ $ $ $ $ 1998-9 9 4,049,038.0 0 2,962,279.0 0 966,967.0 0 39.797.0 0 79,995.0 0 24.226.0 0 55,769.0 0


### D
. Estimate dCos t

o f Captur e an dControl : 1 ) Capito l Investment : $?,???,?? ? 2 ) Annual Deb t

Service : $???,?? ? 1 5 Year s 3 ) Annual Operatin g Cost : $???,?? ? 4 ) Total Annual Cost : $???,?? ?