RAW MATERIAL SUPPLY CONTRACT



 





Exhibit 10.24




COPESUL RS – 486 /82 AGREEMENT




RAW MATERIAL PURCHASE AND SALE AGREEMENT MADE BETWEEN COPESUL – COMPANHIA

PETROQUÍMICA DO SUL AND POLIOLEFINAS S.A.




COPESUL – COMPANHIA PETROQUÍMICA DO SUL, a joint stock venture, with
headquarters at BR-386 – Rodovia Tabai/Canoas, km 419 – Polo Petroquímico –
Lot 23 – Triunfo (RS), enrolled with General Register of Taxpayers of the
Ministry of Finance, under the number 88.948.492/0001-92, hereinafter called
COPESUL, hereby represented by its President Director JOSÉ AUGUSTO ANGRISANI,
and by its Superintendent Director PERCY LOUZADA DE ABREU and POLIOLEFINAS
S.A., with headquarters in the City of São Paulo, State of São Paulo, enrolled
with General Register of Taxpayers of the Ministry of Finance, under the
number 62.336.946/0001-80, hereby represented by its Director DAVID ANDREW
WICKER, hereinafter called PURCHASER, agree this Purchase and Sale Agreement,
which will be govern by the clauses and conditions as follows:



FIRST CLAUSE – OBJECT





	1.1.	 	COPESUL agrees to sell and release without exclusivity SELLER, and this
agrees to purchase and receive of COPESUL for exclusive use in its
factory in Triunfo, ETHENE and PROPYLENE, according to the quantitative
limits set forth at the Third Clause and with specified quality at the
Forth Clause, the other conditions set forth in this Agreement being
observed.
	 
	1.2	 	PURCHASER undertakes to use the ETHENE and/or PROPYLENE, object of this
Agreement as raw material for the production of LAW DENSITY POLYETHYLENE
its by-products and co-products in the operation of its industrial units,
localized in Triunfo, its commercialization being prohibited, of any form
or way, without COPESUL’s express approval.
	 
	1.3	 	COPESUL is not responsible for any losses, direct, indirect or
consequential damages occurred to PURCHASER concerning the use of provided
ETHENE and PROPYLENE, considered for this purpose the release point defined at
the sub-section 5.2, provided that the physical supplied conditions are met
and the specifications set forth at the ANNEXES A and B.





SECOND CLAUSE – TERM





	2.1	 	This Agreement will be in force from its execution and oblige the
contracting parties until June 30, 1992.





 









 





	2.2	 	The term set forth at the sub-section 2.1, being elapsed, its extension
will be automatic by successive periods of 5 years, unless any party
manifests in writing its intention to extend it with at least 36 months
prior notice before ending the respective contractual periods.





THIRD CLAUSE – QUANTITY





	3.1	 	COPESUL undertakes to sell and release to PURCHASER the ETHENE and/or
PROPYLENE necessary to the production of LAW DENSITY POLYETHYLENE until
the maximum of 150,000 ton of ETHENE and 2,550 ton of PROPYLENE per year.
The annual limits of ETHENE and PROPYLENE that COPESUL undertakes to
supply to PURCHASER and the annual minimum limits that COPESUL and the
PURCHASER undertakes to supply and buy, respectively, as well as other
contractual provisions concerning these quantities, are detailed at the
ANNEX A, which is integral part of this Agreement.






	3.2	 	Until August 30 of each year PURCHASER will supply one consumption
forecast of ETHENE and PROPYLENE for the following calendar year,
satisfying the annual consumption limits set forth at the ANNEX A. This
forecast will be confirmed or revised by PURCHASER until October 30 of
the same year.






	3.3.	 	PURCHASER undertakes to provide writing notice, to COPESUL, until the
end of the intermediary month of each calendar quarter, of its estimated
necessities of ETHENE and PROPYLENE, month by month, for the following
calendar quarter. Until the 10th day of each month, PROPYLENE will inform
COPESUL about eventual revisions of the proceeding quantities informed
for the following month, conjointly with the quarterly schedule.





FOURTH CLAUSE – DELIVERY FORM, SUPPLY QUALITY AND CONDITIONS





	4.1	 	ETHENE AND PROPYLENE supply will be made by piping inter-linking
directly the PURCHASER and COPESUL’s facilities, localized in Triunfo.
The ETHENE will be delivered in gaseous phase and continuous flow. The
PROPYLENE will be delivered in liquid phase, in intermittent according to
the schedule to be established between the parties.






	 	4.1.1	 	In the future, having availability of GRADE CHEMICAL
PROPYLENE in its battery limit, PURCHASER may opt for this product
substituting the GRADE POLYMERIC PROPYLENE, which
will be supplied initially by COPESUL.




 









 












	4.2	 	ETHENE and PROPYLENE to be supplied by COPESUL must obey the physical
conditions of supply and the specifications consisting of the ANNEXES A
and B. The ANNEX B defines also the analysis methods to be practiced as
well as the ETHENE and PROPYLENE supply conditions in the PURCHASER’s
battery limits.






	4.3	 	ETHENE and PROPYLENE supplied by COPESUL, which are not according to the
specifications and conditions of supply set forth at the ANNEX B, may be
not accepted by PURCHASER, in which case will be interrupted the ETHENE
and PROPYLENE delivery until COPESUL may dispose of ETHENE and PROPYLENE
in the specification. The eventual acceptation by PURCHASER, of ETHENE
and PROPYLENE supplied out of the specifications forecasted, will be
valid separately and will not impede the rejection of the product in
succeeding cases.






	4.4	 	In case of PURCHASER accepts to receive ETHENE and/or PROPYLENE out of
the specifications, the sale price of these products will be corrected as
follows:






	 	4.4.1	 	If the ETHENE and/or PROPYLENE are out of the
specification, due the non-observance of the minimal purity
specified at the ANNEX B, the price will be reduced in order to
hold the same unit price in terms of ETHENE and PROPYLENE
contained.






	 	4.4.2	 	If the ETHENE and PROPYLENE are out of the specifications,
due content of contaminants from the productive process of the
PURCHASER, which contaminants are defined at the ANNEX B, there
will a reduction of 20% in the sale price of the quantities that
are accepted by PURCHASER.






	4.5	 	Except concerning the supply specifications and conditions set forth in
the ANNEX B, COPESUL does not offer no guarantee that the ETHENE and
PROPYLENE supplied are appropriate for any particular utilization.
PURCHASER assumes all risks of any nature arising of the ETHENE and/or
PROPYLENE use acquired, both used simply and in combination with any
other substance in any technological process.





FIFTH CLAUSE – PROPERTY MEASURING AND TRANSFER





	5.1	 	All methods and proceedings concerning the measuring of the supplied
quantities, installation and calibration of the gauge, frequency of the
measuring and ways to conciliate any differences observed in the
effectuated




 









 






	 	 	measuring, are defined at the ANNEX C, integral part of this
Agreement.






	5.2	 	The possession of the ETHENE and PROPYLENE supplied by COPESUL will be
considered as transferred for PURCHASER from the Delivery Point defined
as point situated immediately downstream of the “Official Measuring”. The
non-acceptation of the product by PURCHASER will signify the interruption
of the supply, for all purposes of the Eighth Clause of this Agreement.






	5.3	 	If, in the future, COPESUL installs the Centralized Measuring System,
which will make telemeasuring of the ETHENE and PROPYLENE, supplied to
PURCHASER, complementing the conventional measuring systems, for the
invoicing purposes, the parties will agree a new redaction for this
Clause and of the ANNEX C.





SIXTH CLAUSE – PRICE AND READJUSTMENTS





	6.1	 	The sale price of the ETHENE and PROPYLENE supplied by COPESUL will be
that determined by the Price Interministerial Council – CIP and identical
to all consumers with factories localized in Triunfo, identical physical
supply conditions being observed. COPESUL by communication in writing,
will inform immediately to PURCHASER the sale price approved by CIP.






	 	6.1.1	 	COPESUL will study conjointly with PURCHASER, case by case,
special technical financial conditions, trying to become viable
exportation operations.






	6.2	 	The readjustment of these prices will be made according to the
determinations of the Price Interministerial Council – CIP, or any other
governmental body, which may substitute it, or in its absent, by
agreement between the contracting parties.






	 	6.2.1.	 	COPESUL, by communication in writing and within the term of 3
working days, will inform to PURCHASER always that enter in
discussion with the CIP about readjustment of its sale prices,
informing also the requested readjustment perceptual.






	6.3	 	The news price levels that are established by the competent governmental
body will be in force on the date authorized by the same, being the
PURCHASER promptly informed in writing by COPESUL of this readjustment.
	 
	6.4	 	Any Federal or State taxes or fees, of which COPESUL is not legal
taxpayer,




 









 






	 	 	occurred or that may occur on the ETHENE and PROPYLENE supply
object of this Agreement, and did not include in the prices and
readjustments approved by the CIP, will be added to invoicing of the
supplied ETHENE and/or PROPYLENE quantities.





SEVENTH CLAUSE – PAYMENT FORM





	7.1	 	The invoicing to PURCHASER concerning the supplied ETHENE and PROPYLENE
will be made monthly until the 10th calendar day following the month in
which occurred the supply.






	7.2.	 	PURCHASER will pay the trade bills corresponding to said invoicing, in
addresses to be determined by COPESUL, until the last calendar day
following the month in which occurred the supply. The payment out of this
term will subject PURCHASER to monthly indexation of the amounts in
arrears, which calculation will be based on the Readjustable Treasure
Bonds (ORTN) and interest rate of 1% per month applied on the corrected
amount.






	 	7.2.1	 	COPESUL, at it discretion, may before the maturity date,
effectuate banking discounts of the trade bills corresponding to
the ETHENE and/or PROPYLENE invoicing supplied to PURCHASER,
remaining the maturity of the invoicing automatically extended,
without burden for the PURCHASER, for 30 days from the date of the
discount, being PURCHASER notified in writing about this.






	 	7.2.2	 	If COPESUL opts by the banking discount of non-liquidated
trade bills, in latter date to that of the respective maturity, the
financial charges of the discount operation will be charged to
PURCHASER, which will pay the same directly to COPESUL and which
maturity will coincide with the new maturity of the discounted
trade bill. The incidence of interests and indexation set forth at
the sub-section 7.2 will end in the date of the discount.






	7.3	 	The non-payment of trade bills corresponding to invoicing of two
consecutive months from the PURCHASER or of the financial charges set
forth at the sub-section 7.2.2, will give to COPESUL the right to
interrupt the ETHENE and PROPYLENE supply, through with at least 1
working day in writing notice to PURCHASER. The ETHENE and/or PROPYLENE
supply will be reinitiated immediately or nor latter than 48 hours from
the integral acquittal of the PURCHASER’s debits as to COPESUL.





EIGHTH CLAUSE – FINES






 









 









	8.1	 	If, by reasons did not defined in the sections 4.3 and 10.1, nor by
reductions in the ETHENE supply, PURCHASER does not receive and accept
the minimal quantities set forth at the ANNEX A, on the end of each
calendar year, COPESUL will charge PURCHASER the difference between the
minimum annual consumption set forth at the ANNEX A and the real
consumption of ETHENE by an unitary price calculated in 40% of the sale
price in force on December 31 of the respective calendar year
	 
	 	 	If, by reasons do not define at the section 10.1 nor by fault of the
PURCHASER, COPESUL may not supply the minimal quantities of ETHENE set
forth at the ANNEX A for each calendar year, COPESUL will have a fine
calculated, by applying the unitary price defined at the section 8.1 to
the quantities do not deliver.






	8.3	 	COPESUL will user the best efforts to deliver to other consumers and
ETHENE quantities did not retire by PURCHASER. The quantities so
delivered that representing addition to maximal annual portions of its
other clients considered conjointly will be added to annual real
consumption of PURCHASER, for the application purpose of the section 8.1.






	 	8.3.1	 	In the same way, that ETHENE quantities, which are
delivered other than the Companies integrating the Basic Complex of
the Petrochemical South Pole, by action or intermediation of the
PURCHASER, will be added to real consumption of the PURCHASER, fort
the effect of the application of the section 8.1.






	8.4	 	The parties agree that for the period of 6 months set forth at the
section III of the AGREEMENT CONCERNING THE ETHENE SUPPLY AND RECEIVING,
executed on May 08, 1980, will be not requested the performance of the
minimal and/or programmed supply and receipts, being not applied the
provisions of the sections 8.1 and 8.2.






	8.5	 	By occurring the set forth at the sections 8.1 and 8.2, the prejudiced
party will not have against the debtor no credit, at any time or on any
account, in addition to the fine set forth in the said sections.





NINTH CLAUSE – STOPPAGE





	9.1	 	COPESUL will inform PURCHASER, at least 6 months prior notice, its
stoppage schedule for general maintenance of the e productive facilities
of ETHENE and PROPYLENE.






	 	9.1.1	 	In this time, COPESUL based on its availability and in the
minimal




 









 






	 	 	 	consumption quantities of each user, will calculate the
amount of the maximum supply to PURCHASER which will be observed
during the maintenance stoppage.






	9.2	 	The stoppage schedule for general maintenance of the PURCHASER’s
facilities must be informed to COPESUL with at least 6 months prior
notice.






	9.3	 	In case of interruptions or reductions in the ETHENE supply by COPESUL,
by COPESUL’s negligence or due force majeure, the amount to be charged
to PURCHASER corresponding demands that it are possible to invoice for
the supply of the utilities – steam and treated water, will be reduced
proportionally to the number of interruption hours or reduction in the
ETHENE supply, taking on account 730 hours/month as basis of the
proportional calculation. The amount to be collected will be not however
below 50% of the contracted demands. The set forth at this Clause
prevails what is established at the Utilities Supplies Agreements.






	9.4.	 	For the application purposes set forth at the section 8.1, in the cases
of interruptions or reductions by COPESUL, by its fault or due force
majeure, the supply of the utilities necessaries to PURCHASER’s
production process, the minimum annual consumption of ETHENE established
at the ANNEX A will be decreased of one equal quantity to that, which
normally supplied during the interruption or reduction period, taking on
account the informed consumption as to set forth at the section 3.3.






	9.5	 	COPESUL and PURCHASER will inform the other party of any events that may
prejudice the normal supply of ETHENE and/or PROPYLENE and use the best
efforts for the prompt reestablishment of the normality of these
supplies.





TENTH CLAUSE – FORCE MAJEURE AND CONTINGENCIES





	10.1	 	No parties may be responsible for non-compliance of its contractual
obligations if their are motivated by acts of God or force majeure, as
to the set forth at the Article 1.058, sole paragraph of the Brazilian
Civil Code.






	 	10.1.1	 	PURCHASER may allege as force majeure, affecting the compliance
of its contractual obligation, the events of acts of Gods of force
majeure, as to the Article 1.058, sole paragraph of the Brazilian
Civil Code that affect the PURCHASER’s clients, which purchases
realized in the 6 months before the alleged force majeure event,
are more than 20% of the nominal capacity of the PURCHASER’s plant.





 









 











	10.2	 	By any reasons set forth at the section 10.1, or by supply problems of
its raw material, COPESUL, at its discretion, may reduce the ETHENE
supply to PURCHASER. The reduction in the ETHENE supply will be
distributed equitably amount all COPESUL’s purchasers and calculated,
maintaining supplies proportional to the minimum annual consumption set
forth at the ANNEX A, in force at the time of such contingency. In the
calculation of this reduction will be took in account the minimum
operational consumption of the process units of the COPESUL’s clients,
which, in case of the PURCHASER, is of 8.5 ton/hour of ETHENE for the
tubular unity or 6 ton/hours for the unity with autoclave.






	 	10.2.1	 	COPESUL will use its best efforts for looking for other supply
sources, complementary quantities of ETHENE in order to be possible to
satisfy integrally the assumed supply commitment.






	10.3	 	Whenever the contracting parties deem necessary to invoke a force
majeure reason, they must realize communication in written to other
party, until 2 days after the event, which motivated the abnormality.






	10.4	 	The contraction parties may, in the case set forth at the section 10.1,
to adapt, of good faith and within the reasonable limits, its
obligations to the new circumstances, in order to find a solution, by
considering the interests of both parties.





ELEVENTH CLAUSE – TERMINATION





	11.1	 	COPESUL and PURCHASER may terminate this Agreement by operation of law
and regardless of notification or in or out of court interpellation in
the hypothesis as follows:






	 	11.1.1	 	In or out court liquidation, or bankruptcy of other party,
approved or ordained.






	 	11.1.2	 	Total or partial transfer to third parties without authorization
of the other party of the rights and obligations that are
attributed in this Agreement to the other party, unless this
transfer is operated by incorporation, merger or spin-off.






	12.2	 	Em cause of default of any Clause or Condition of this Agreement, the
non-defaulting party may terminate it if the defaulting party does not
remedy it default within 90 days from the receipt of the in writing
notice, indicating the
said contractual non-compliance.




 









 












	11.3	 	Any and all tolerance concerning the compliance by any parties, of the
conditions set forth in this Agreement, does not signify amendment of the
provisions hereby agreed, but liberality of the party only.





TWELFTH CLAUSE – AMENDMENT AND JURISDICTION





	12.1	 	This agreement may not be amended, assigned or transferred in whole or
in part, except with the consent of the parties, but always by instrument
in writing and annexed to this Agreement.






	12.2	 	It is elected the Jurisdiction of city of Porto Alegre, State of Rio
Grande do Sul, to result the disputes arising of this Agreement and of
its execution, with exclusion of any other the most privileged it may by.





THIRTEENTH CLAUSE – ANNEXES





	13.1	 	The followings ANNEXES, is integral part of this Agreement:






	-	 	ANNEX A – Quantities to Supply
	 
	-	 	ANNEX B – Quality of the Products
	 
	-	 	ANNEX C – Form of Measurement





FOURTEENTH CLAUSE – ADDRESSES





	14.1	 	The correspondences concerning this Agreement or its execution, must be
sent to the address as follows:
	 
	 	 	COPESUL

BR-386 – Rodovia Tabaí/Canoas, km 419

Polo Petroquímico – Lote 23

95853 – Triunfo – RS
	 
	 	 	PURCHASER

BR-386 – Rodovia Tabaí/Canoas, km 419

Polo Petroquímico – Lote 27

95853 – Triunfo – RS





FIFTEENTH CLAUSE





	15.1	 	The AGREEMENT CONCERNING THE ETHENE SUPPLY AND




 









 






	 	 	RECEIPT signed between
COPESUL and PURCHASER on May 08, 1980 remains valid until the effective
supply and receipt of ETHENE by the parties.






	15.2	 	COPESUL will be responsible by the supply of treated waters and of the
water steam, as well as by the distribution of electrical power and
gaseous nitrogen necessary to productive process of the PURCHASER. This
responsibility will be regulated by specific agreement to be signed
between the parties.





In witness whereof, binding themselves and their successors the parties sign
this Agreement in 3 copies of equal text and form for a sole effect, before
the witnesses which conjointly undersign.



Triunfo, this December 08, 1982.




COPESUL – COMPANHIA PETROQUÍMI9CA DO SUL




	 	 	 	 	 	 	 
	(Sgn.) (Illegible)	 	(Sgn.) (Illegible)
	

	 	José Augusto Angrisani
	 	 	 	Percy Louzada de Abreu







POLIOLEFINAS SA.




	 	 	 	 	 	 	 
	(Sgn.) (Illegible)	 	(Sgn.) (Illegible)
	

	 	José Adolpho Lisboa de Souza
	 	 	 	David Andrew Wicker







WITNESSES




	 	 	 	 	 	 	 
	(Sgn.) (Illegible)	 	(Sgn.) (Illegible)
	

	 	Eduardo Fett Schneider
	 	 	 	José Antonio Ferreira Fadrique







 









 






A N N E X A




QUANTITIES TO BE SUPPLIED





	A.1. —	 	 The supplies of ETHENE and/or PROPYLENE contracted are defined by the
limits below established:





	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	ANNUAL	 	ANNUAL	 	MONTHLY	 	 
	PRODUCT	 	MINIMUM	 	MAXIMUM	 	MAXIMUM	 	MAXIMUM
	ORDERED
	 	CONSUMPTION
	 	CONSUMPTION
	 	CONSUMPTION
	 	HOUR FLOW

	ETHENE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FIRST SIX MONTHS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(10/01/82 TO
03/31/83)
	 	 	—	 	 	 	*60,000t	 	 	 	11,700t	 	 	 	17.9t	 
	1983
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(04/01/83 TO
12/31/83)
	 	 	*54,000t	 	 	 	*90,000t	 	 	 	11,700t	 	 	 	17.9t	 
	1984
	 	 	72,000t	 	 	 	120,000t	 	 	 	11,700t	 	 	 	17.9t	 
	FROM 1985
	 	 	90,000t	 	 	 	150,000t	 	 	 	14,600t	 	 	 	17.9t	 
	PROPYLENE
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FIRST SIX MONTHS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1983
	 	 	—	 	 	 	2,550t	 	 	 	235t	 	 	 	—	 
	(04/01/83 TO
(12/31/83)
	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 
	FROM 1984
	 	 	—	 	 	 	2,550t	 	 	 	235t	 	 	 	—	 







* Consumption within the indicated periods.





	A.2. –	 	 COPESUL is not responsible for the supply of quantity
of ETHENE and/or PROPYLENE above the monthly and
annual hour maximums, established under A.1. The
maximum hour flow and the maximum monthly consumption
for 2 (two) consecutive month shall only be exercised
upon previous agreement with COPESUL and, shall be
reduced by BUYER when a communication for said
purpose is received, in writing, from COPESUL,




 









 






	 	 	provided the maximum monthly consumption BUYER is entitled to is not prejudiced.






	A.3. —	 	  The quantities of ETHENE and PROPYLENE supplied and
consumed shall be, as much as possible, constant.
Provided the supply and consumption flows are subject
to the operation of the facilities of COPESUL and
BUYER, the parties shall develop their best efforts
so as to coordinate its operations focusing the
uniformity of the supply flows.






 










 





ANNEX B

QUALITY OF THE PRODUCTS




	 	 	 	 	 
	B.1	 	The quality of the ETHENE and PROPYLENE to be deliver
by COPESUL must obey the technical specifications
consisting of the section B.6 of this annex.
	 
	 	 	 	 
	B.2	 	During the delivery of the product, daily at 6 a.m.
COPESUL will collect in its plant, 3 ETHENE and
PROPYLENE samples, maintaining two as witnesses by
the term of 3 days.
	 
	 	 	 	 
	

	 	B.2.1
	 	For comparison effect would be desirable by the PURCHASER, and this
undertakes to make sample of the received product, in the same hours set forth
at the section B.2 above
	 
	 	 	 	 
	

	 	B.2.2
	 	The complete typical analyses of the ETHENE and PROPYLENE will be to
PURCHASER’s disposition from 12 a.m. of the day of the sampling.
	 
	 	 	 	 
	

	 	B.2.3.
	 	In case of supply from tank, COPESUL will put to PURCHASER’s disposition
the result of the analyses effectuated in the stored product.
	 
	 	 	 	 
	

	 	B.2.4
	 	In addition to the typical analysis referred in B.2.2, COPESUL will
supply copies of the routine analysis effectuated on the ETHENE and PROPYLENE
(this when are being supplied).
	 
	 	 	 	 
	B.3	 	The product must be analyzed according to the methods
practiced by COPESUL, set forth at the section B.6 of
this annex.
	 
	 	 	 	 
	B.4	 	In case of divergence event concerning the quality of
the product, PURCHASER must inform to COPESUL, within
the term defined at the section B.2, which will
analyze one of the sample/witnesses in its
possession.
	 
	 	 	 	 
	B.4.1.	 	In case of persistence of the divergence, COPESUL and
PURCHASER, of common agreement, will elect an
arbiter, which, in the term of 48 hours, will analyze
the sample of the product and will issued a technical
opinion about the quality of the product, which must
be unconditionally accepted by COPESUL and PURCHASER.
	 
	 	 	 	 
	B.5	 	The costs incurred in the mentioned arbitration fall
integrally to the party without reason.







 









 






	 	 	 	 	 
	B.6	 	The technical specifications to be obeyed for supply
of the ETHENE and PROPYLENE concerning this
agreement, as well as the respective analysis methods
to be practiced by COPESUL, are the followings:







	 	 	 	 	 
	PRODUCT - ETHENE
	 	 	 	ANALYSIS METHODS

	Ethene

	 	99,9 mol %, min
	 	ASTM D 250/TPGCA-8
	Methane, Ethane And Nitrogen

	 	1000 ppm max mol
	 	ASTM D 2505/2504/TPGCA-8
	Other Olefins

	 	20 ppm max mol
	 	ASTM D 2505/TPGCA-8
	Acetylene

	 	5 ppm max mol
	 	ASTM D 2505/TPGCA-8
	Hydrogen

	 	10 ppm max mol
	 	ASTM D 2504/TPGCA-1
	Oxygen

	 	3 ppm max mass
	 	Electrolytic Analyzer/Gas chromatography
	Carbon Monoxide

	 	5 ppm max mass
	 	Gas chromatography /TPGCA-1
	Carbon Dioxide

	 	5 ppm max mass
	 	Gas chromatography /TPGCA-1
	Methanol

	 	5 ppm max mass
	 	Gas chromatography /TPGCA-6
	Acetone

	 	5 ppm max mass
	 	Gas chromatography /TPGCA-6
	Ammonia

	 	5 ppm max mass
	 	UOP-430/70
	Hydrogen Sulphide

	 	2 ppm max mass
	 	ASTM D 2385/UOP-212
	Water

	 	3 ppm max mass
	 	Colormetric titration/ASTM D-114
	Total Sulphur

	 	2 ppm max mass
	 	NFT-60142
	Nitrogen Oxide

	 	5 ppm max mass
	 	ASTM D 1607







PURCHASER deems contaminants:




Acetylene

Oxygen

Carbon Monoxide

Methanol

Acetone

Ammonia

Hydrogen Sulphite

Total Sulphur

Nitrogen Oxides

Propylene



	 	 	 	 	 	 	 
	PRODUCT - PROPYLENE: GRADE POLYMER
SPECIFICATION
	 	 	 	 	 	ANALYSIS METHODS

	Propylene, %, min w

	 	 	99.5	%	 	ASTM D-2712
	Metil-acetylene and propadyene, ppm, max weight.

	 	 	10	 	 	ASTM D-2712
	Others hydrocarbons, % max weight

	 	 	0,5	 	 	ASTM D-2163
	Total sulphur, ppm max weight

	 	 	5	 	 	NFT 60142
	Nitrogen, ppm max weight

	 	 	10	 	 	ASTM D-2404
	Oxygen, ppm max weight

	 	 	5	 	 	 
	Hydrogen, ppm max weight

	 	 	5	 	 	 
	CO2 ppm max weight

	 	 	10	 	 	 
	CO, ppm max weight

	 	 	2	 	 	 
	Water, ppm max weight

	 	 	10	 	 	UOP 481







 









 






	 	 	 
	B.6.1

	 	The methods ASTM E-29/67 and ASTM D-3244 will be used as criteria of
rounding and acceptation limit of the results of the analysis,.
	 
	 	 
	B.7.

	 	If, by special reasons, PURCHASER deems necessary to analyze samples
of ETHENE collected in different times of the set forth at the
section B.2, it will inform such fact immediately to COPESUL. In
these events, COPESUL will collect 3 samples of the mentioned
product, being one of them analyzed immediately and the two others
held as samples/witnesses, by applying the set forth at the sections
B.4 and B.5.
	 
	 	 
	B.8.

	 	ETHENE and PROPYLENE supply conditions of in the battery limits of
the PURCHASER are below defined:







ASTM E-29/67 and ASTM D-3244




	 	 	 	 	 	 	 	 	 
	 	 	ETHENE
	 	PROPYLENE

	Pressure – kg/cm2 g minimum
	 	 	40	 	 	 	18	 
	Temperature oC maximum
	 	 	40	 	 	 	40	 
	Temperature o C minimum
	 	 	10	 	 	 	5	 







 









 






A N N E X C




MEASURING FORM




	 	 	 	 	 
	C.1 -	 	For the verification of the quantities of ETHENE and PROPYLENE, for
invoicing purposes, COPESUL shall install the flow totalizer devices,
which shall be designated “Official Measurers”, all of them of marks and
models established under the Norm N-17, issued on 06/26/80, and its
reviews issued up to date.
	 
	 	 	 	 
	

	 	C.1.1. -
	 	Said measurers and the ancillary equipment required for its
operation shall be of COPESUL’s property and installed by the same,
in the measuring station located in the BUYER’s lands. COPESUL shall
be entitled to the free access to said measurers, according to
Buyer’s Norms and procedures, for whatever purposes. Buyer shall be
responsible for the supply of all utilities required for the
operation of the mentioned measuring station.
	 
	 	 	 	 
	

	 	C.1.2. -
	 	Further to the “Official Measurers”, “User Measurers” shall be
installed in the Measuring Station, with the same marks and models
as the “Official Measurers” being mandatory, for the measure of
ETHENE.
	 
	 	 	 	 
	C.2 -	 	The verification of the ETHENE and PROPYLENE quantity supplied shall be
done daily, by COPESUL, in a time previously established by the same.
COPESUL shall inform, in writing, to BUYER, the time when the reading of
the “Official Measurers” will be done, so as BUYER may have its
representative in the location, if it so intends.
	 
	 	 	 	 
	

	 	C.2.1. -
	 	Said verification shall be done through the reading of the flow
digital totalizers of the “Official Measurers”.
	 
	 	 	 	 
	

	 	C.2.2. -
	 	In the event of problems detection in said digital totalizers,
the verification shall be done through the “Users Measurers”,
provided the provisions under Norm N-17, item 5.9 is complied with.
	 
	 	 	 	 
	

	 	C.2.3. -
	 	The calculation required for the establishment of the quantities
delivered, shall be performed through a procedure adopted by a
competent national or international authority, under COPESUL
discretion and upon previous approval by BUYER.







 









 






	 	 	 	 	 
	C.3 -	 	A program for the maintenance and gauging of the “Official
Measurers” and “Users Measurers” shall be elaborated by the
contracting parties, with the forecast of its routine verification
for a period not higher than 30 (thirty) days.
	 
	 	 	 	 
	C.4 -	 	The maintenance and gauging of the “Official Measurers” shall be
done by COPESUL, always upon a minimum previous written notification
of 02 (two) working days, to BUYER, so as to enable the same to send
its representatives to follow the works. BUYER may, at any time,
require COPESUL the gauging of the “Official Measurers”. The cost
for said procedures shall be charged to BUYER, whenever the
“Official Measurers” are deemed properly gauged. The maintenance and
gauging of the “Users Measurers”, if any, shall be done by COPESUL,
upon request from BUYER, with the later in charge for the costs
thereof.
	 
	 	 	 	 
	

	 	C.4.1. -
	 	COPESUL must be communicated, in writing, with 02 (two) days
previous notification, about the performance by BUYER, of the
maintenance and gauging services to the “Users Measurers”.
	 
	 	 	 	 
	

	 	C.4.2. -
	 	In the event of absence of the BUYERS representatives, by the
time the maintenance and gauging services are developed to the
“Official Measurers” and, the representatives of COPESUL, by the
time the maintenance and gauging services are developed to the
“Users Measurers”, provided they are duly informed, the services
shall be rendered with no right to whatever further claim.
	 
	 	 	 	 
	

	 	C.4.3. -
	 	Whenever the “Official Measurers” are taken from operation, the
“Users Measurers” shall be considered as official, according to the
provisions under sub-items C.5.2. and C.5.3.
	 
	 	 	 	 
	C.5. -	 	The “Official Measurers” are deemed mistrusted, and shall be promptly
gauged, whenever the differences between the same and the measurements
effected by BUYER cause values above 1% (one percent).
	 
	 	 	 	 
	

	 	C.5.1. -
	 	Whenever it is verified that the “Official Measurers” are
adequately gauged, the reading provided by the same shall be
adopted.
	 
	 	 	 	 
	

	 	C.5.2. -
	 	When the “Official Measurers” are considered out of gauging
parameters, COPESUL will consider the reading of the “Users
Measurers”, provided that after the “Official Measurers” gauging,
the limit of the percent difference established under the item C.5.
is verified.
	 
	 	 	 	 
	

	 	C.5.3. -
	 	Upon verification of the non-compliance to the percent limit
under







 









 






	 	 	 	 	 
	

	 	 	 	item C.5., it shall be determined under common agreement
between the parties, the respective correction factor and the
measurements to be adopted will be obtained upon the
application of said correction factor to the quantities
effectively totaled by said “Official Measurers”, from the date
the deviation was detected.
	 
	 	 	 	 
	C.6. -	 	By the time of the “Official Measurers” gauging, the “Users
Gauging” installed by COPESUL, shall be considered “Official
Measurers”.
	 
	 	 	 	 
	C.7. -	 	COPESUL shall verify and inform BUYER, daily and in a
pre-established time and duly informed to the same, about the
quantity of ETHENE supplied. The daily report of measurement of the
ETHENE AND PROPYLENE quantity delivered to buyer shall be available
for whatever verification and claim up to 90 (ninety) days after
the maturity date of the respective invoices. After said period,
whatever both party’s rights to claim relative to the quantities
invoiced, will prescribe. The payment of the invoices shall be
effected notwithstanding whatever claims, always when the
discrepancies verified are within the range of 2% (two percent)
compared to the quantity invoiced.
	 
	 	 	 	 
	C.8. -	 	As required, the graphics of measurements relative to the “Users
Measurers” shall be daily construed and calculated by BUYER, which
shall be held responsible to keep them available for COPESUL
analysis, if it is so required by the same, for the term of 90
(ninety) days.
	 
	 	 	 	 
	C.9. -	 	The access to the installations issuing the products object
hereunder will be facultative to the BUYER, in order to, through
its accredited representatives, accompanied by COPESUL
representatives, verify the shipping conditions of the product
delivered.