# OAR Box 1872

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## Document

Number: 

# 24 ) 11-1-7 3 Docket Number: 

# A-90-1 9

Printed 11/26/20088:51:50AM Sheet 24 of 204 P. 1

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# j j NEW S A-90-1 9 H-l-7 3 

# DIVIDIN G TH E CHEC K FO R CLEA N AI R A Clea n Ai r Ac t proposa l b y Rep . Joh n D . Dingel l (D. . MI

) coul dlevy a sizabl e emission s fe

e o n industria l boil

er s operate db

y th e chemica l industr y an dothe r manufacturin g companie s in th e U.S . Th e Hous e Energ y an dCom

merc e Committee , whic hDingel l chairs , ha s primar y jurisdictio n over th e Clea n Ai r j^ct . Th e Dingel l pla n woul dimpose a10

- yea r tax o f S55/to n o n industria l boile r emission s that

emi t mor e tha n 10 0 tons / yea r o f sulfu r dioxid e (S O J . A $45/to n ta x woul db e levie do n utilities . Ac

cordin g t o th e Environmenta l Protec

tio n Agency , th e U.S . industria l secto r emit s abou t

5 millio n tons/yea r

o f SO, , whil e utilitie s giv e of

f abou t 1 5 millio n tons/year . Fee s woul dappl y t o cogen erator s an dindependen t powe r pro ducer s an dgovernmen t

facilities , whil e boiler s operate db y hospitals , colleges , universities , o r

residentia l apartment s woul db e exempt . Th e proposa l i s part

o f Dingell' s pla n t o sprea dth e cost s o

f aci drai n control s expecte dt o b e born e primaril y by

Midwester n utilities , J ^ bil l propose d b y Presiden t

Bush , o n th e othe r

hand , require s utilitie s t o foo t th e bil l fo

r equipmen t

purchase do r

action s take n t o reduc e emissions . Th e Whit e Hous e oppose s an y cost-sharin g pla n base do n afe e or ta x t o industry . For years , th e cost-sharin g issu e ha s ensnare dCongres s i n regiona l squabbles . Legislator s fromMidwest

er n state s believ e aci drai n contro l cost s shoul dbe sprea devenl y amon g al l state s rathe r than jus t

th e heavie r

polluters . Legislator s fro

mstate s withcleane r emission s wan t

credi t fo r cleanup s the y havp alread y pai dfor . Th e chemica l industr y i s stil l study

in g Dingell' s proposal . Mar k Nelson , directo r o f legislativ e affair s fo

r DuPont , say s a n emission s tax woul dpromp t industria l source s t o switc ht o cleane r fuel s lik e natura l gas . Bu t anothe r ob

serve r say s instea do

f tryin g t o sprea d aroun dth e cos t

o f th e clea n ai r

bill , lawmaker s shoul db e tryin g t o reduc e it . Dingel l say s h e offeredth e pla n becaus e h e i s concerne dabou t increas

Dingell : Sprea d th e cos t o f aci d rain .

in g acrimon y amon g committe e mem ber s over aci drain . H e warn s tha t th e issu e "ha s th e potentia l t o tur n clos e friend s int o lastin g enemie s an ddivid e thi s committe e o n man y issue s fo r year s t o come. " CONRAD

B. MACKERRON in Washington 

# SHEL L PLAN S FO R MOR E EO/E G Shel l Chemica l (Houston ) i s poise d t o announc e amajo r

increas e i

n it s U.S . ethvlen e oxide/ethylen e glyco l (EO/EG ) capacity . Source s sa y th e compan y i s clos e t o afinal decisio n o n apla n t o buil dane w 450-millio n lb / yea r EO/E Gfacility , probabl y a t it s existin g productio n sit e a t Geismar . LA . Th e company' s 830-millio n lb/yea r E O capacit y a

t Geismar i s bein g ex pande dt o 87 0 millio n lbs/year . I f ap proved , th e ne w uni t

woul dstart

u p aroun d1993 . pushin g Shel l ahea do f Texac o Chemica l (Bellaire . TX ) a s th e second-larges t

E O produce r

behin d Unio n Carbid e (Danbury . CT) . Source s say th e E

O uni t wil l b e slightl y large r

tha n necessar y s o i

t can suppor t a n E Guni t plu s productio n o

f otherdcrivatives . an densur e merchan t availability . Suppl y o

f E O t o th e mert-.han i marke t ha s beo n decroasingsinc e severa l major s decide dt o u p E O de

rivative s production . Texac o Chemica l an dUnio n Car

bide , formerl y majo r

supplier s t o th e merchan t E O market , alread y an nounce dwithdra w frommerchan t busi

nes s sales . The y pla n t o increas e pro ductio n of

othe r E O derivatives , par ticularl y fiber-grad e ethylen e glyco l fo r export , an dethanolamines . Shel l i s asupplie r

t o th e U.S . mer chan t E O business , an dcombine dca pacitie s o

f it s tw o existin g E

O plant s excee dcaptiv e demand . Th e merchan t 

## SLOWIN G GROWT H I N NORT H AMERIC A f m billion s o fpounds )

198 9 199 1 199 5 Ethylen e oxid e Capacity Deman d Utilizatio n Ethylen e glyco l Capacity Deman d , , Utilizatio n Sout e Tacno n i U K• 8.0 5

7.2 8 90 % 7.5 8 6.0 6 80 % lonoo m 8.5 8

7.6 9 86 % 8.0 6 6.3 6 79 % 10.6 3 8.4 5 80 % 10.3 5 6.9 6 67 % marke t

i s alread y small , a

t unde r 10 % o f total production , withbuyer s mainl y th e merchan t

ethoxylator s wh o us e E

O t o make detergen t

intermediates . "Th e merchan t

E O marke t ha s bee n extremel y tight. " comment s Marily n Bradshaw . busines s manage r a t Coli n A . Housto n & Associate s (Mamaroneck . NY) . "Som e ethoxylator s .. . ar e unabl e t o obtai n sufficien t

EO. " Shell , th e onl y produce r

integrate d int o E O an ddetergen t

alcohols , i s dominan t i n ethoxylation . But

Texac o an dEthyl' s (Bato n Rouge . LA ) recen t tie-u p als o give s the ma n integrate d position . E O price s hav e remaine dremarka

bly stabl e thi s year , in contras t t o tab s o f man y othe r

commodit y chemicals . Whil e ther e ha s bee n som e sligh t wear , enin g in prices , contrac t tab s hav e dippe donl y recently , fro mabou t 6 0 ct s lb t o abou t

5 5 cts/Ib . an dar e ex pecte dt o stay fir

mmuc ho

f nex i Carbid e ha s dominate dE O expan sio n headline s wit hit s pla n t o si S40 0 millio n t o increas e tota l EO/EG capacity b

y 1. 2 billio n lbs/year . Th r compan y i s doublin g capacii v ul It * E O E Guni t a t Taft . L A t o 95 0 milln» n lb s yea r an daddin g 80 0 millio n lbs ' 1 2 Crtemicaiwee k

NovemDe ' ' 5 198 9P. 3

# I -NEWJ i

year t o EO/E Gcapacit y a

t Prentiss . AB . Bu t despit e th e opportunit y fo r merchan t E O sales , th e likelihoo dof anothe r ne w EO/E Gplan t

raise s wor rie s abou t

overcapacit y i n th e E

Gmar ket . Tab s hav e bee n driftin g i n aweak market ; producer s hav e bee n cuttin g contrac t tab s t o 4 0 cts/lb , an dspo t price s ar e 1 0 cts/l b belo w tha t level . Roger Lee , aconsultan t

wit hTecno n (U.K. ) (London) , says . "I n Nort hAmer

ica . ME Gutilizatio n rate s ar e at abou t 80 % i n 198 9 an dshoul dsta v aroun d that " leve j unti l 1991/92. " But if all.. . schedule dexpansion s fo

r EO/EGcom e o n stream , h e add s "utilizatio n rate s coul ddro p dow n t o 67 % b y 1995. "

ANDREW

WOOD 

# USS RDEVELOP S FREE-MARKE T FEVE R Th e Sovie t

petrochemical s tradin g fir mNeftechimexport

i s puttin g togethe r th e first limite dtradin g compan y i n th e USSR . Th e company , t o b e calle dNaf

tek . wil l grou p togethe r

mor e tha n 5 0 petrochemica l an dsyntheti c rubbe r complexe s wit hth e ai mof developin g oversea s trad e an dcoordinatin g invest

ment . Majo r chemica l productio n com plexe s suc ha s thos e at

Tomsk . Omsk , Tobolsk , Ufa , Angarsk , an d Nizhnekams k

wil l com e unde r

th e ae gi s o f Naftek , t o b e heade db y Valeri e Kuzmin , directo r

of Neftechimexport . I n addition , Naftek

wil l incorporat e a strin g of smalle r unit s an dth e Moscow

basedbank . Neftebank . Th e creatio n o f

Naftek i s amajo r ste p i n transformin g th e Sovie t chemica l industr y int o amarket-oriente dsecto r o f th e economy . It

follow s th e merge r earlie r thi s mont hof

tw o ministries , coverin g chemical s an doi l refinin g an d petrochemicals , int o asingl e unit . Dur

in g arecen t

visi t b y ahigh-leve l Sovie t delegatio n t o Wes t

Germany , Victo r Rudnev , genera l directo r o f Soyuzchimexport , th e stat e expor t organization , sai dh e believe s tha t i n th e futur e centra l plannin g wil l pla y are duce drol e i n th e chemica l secto r a s wel l a s i n th e wide r

Sovie t economy . " A majo r reorganizatio n of

th e So

vie t chemica l industr y i s no w unde r way, " h e says . Enterprise s wil l b e in

creasingl y geare dt o sel f managemen t an dfinancing , h e adds , wit hth e gov ernmen t onl y playin g arol e i n project s to o larg e for

on e entit y t o undertake . Rudne v wa s i n Dusseldor f fo r th e 15t hanniversar y celebratio n of Sobren . ajoin t ventur e o

f Soyuzchimexpor t

an d Wes t German companies . Th e Soviet s hav e simila r

venture s i n Austria . Bel

gium . Finland . France . Spain , an d Sweden . Talk s ar e als o unde r way o n a ne w Sovie t

tradin g ventur e in th e U.S. . a s wel l a s i n Indi aan dSouthKorea . Suc hventure s ar e expecte dt o b e usefu l i n th e openin g of

foreig n trade , thank s t o thei r knowledg e of

condition s an d law s i n th e Sovie t

Union . Las t year Soyuzchimexpor t

di d12 % of it s busines s throug hoversea s ven tures , an dSobre n accounte dfo r one quarte r of that . Sinc e las t

May Sovie t enterprise s hav e bee n allowe dt o trad e directl y o n foreig n markets , whic hcoul d reduc e th e amoun t

of busines s handle d b y Soyuzchimexport . Inaddition , sepa rat e agencie s hav e bee n se t u p fo r fertil



# Restructuring aims at increased foreign business

izers , methanol , an dcrop-protectio n products—Soyuzagrochimexport—an d fo r petrochemicals—Neftechimexport . Bu t Rudne v say s experienc e show s ther e won' t

b e to o muc himpac t

o n Soyuzchimexport , an dth e compan y stil l ha s pact s wit habou t

8 0 enterprise s coverin g trad e o n foreig n markets . I n Dusseldorf

, Adolp hSmirnov , directo r of Kirishineftechimexport . a major aromatic s trade r

an dproducer , sai dtw o join t

venture s ar e unde r

dis

cussio n withWester n partners . Thos e includ e apossibl e detergent s projec t withItalian an dYugoslav firm s an da lubricant s ventur e wit haU.S . com pany . Kirishineftechimexport i s als o plannin g to buil dane w aromatic s plan t i n th e USSR . Saby r Sandybayev . directo r

o f th e Aktiubins Rchemica l plan t i n Kazakhstan , say s hi s compan y i s dis

cussin g boro n compound s developmen t plan s wit hMi r

Prac e o f Czechloslava

ki aan dChines e firms . Th e compan y produce s sulfuri c acid , oleum , singl e superphosphate , bori c acid , an dboro n compounds . Genadi i Goroboi . deput y directo r of Associatio n Suyuzreactiv . i s als o intereste di n improvin g busines s wit hth e West . Updatin g th e th e Sovie t chemica l investmen t

program . Rudne v confirm s that financing an dgrowin g uneas e abou t ecological issues—particular y i n west ern Siberia—hav e hampere dth e larger projects . "Perhap s ou r Green s ar e greene r tha n yours, " Rudne v observes . Discussion s ar e unde r

wa y concern in g ane w locatio n of

th e propose d Mitsubish i join t

ventur e at

Nishnevar

tovsk . wher e condition s ar e harsh . On e ide aconcern s extendin g aga s pipelin e t o Oms k o r Tomsk , wher e infrastruc

tur e alread v exists .

' NATASHA ALPEBOWICZ

in Dusseldorf 

# A.H . ROBIN S GET S A NE W START Th e Suprem e Court' s refusal t o hea r argument s relatin g t o A.H . Robins ' (Richmond . VA) bankruptc y reorgani

zatio n coul dmar

Rth e star t

o f amor e promisin g er afor

th e $930-million/yea r dru g company . Th e court' s decisio n end s mor e tha n 1 5 year s of litigatio n ove r injurie s an ddeath s relate dt o us e of Robins ' Dalko n Shiel dintrauterin e device . Ancji t

open s th e way fo

r Ameri

ca n Hom e Product s (AHP : Ne w York) t o complet e it s bu y of Robins . Th e takeove r

wil l u p AHP' s sale s t o mor e tha n $ 7 billion/year . I t put s over the-counte r

product s suc ha s Robins ' coug hmedicin e Robitussi n an dallerg y dru g Dimetap p i n th e sam e portfoli o withAHP' s househol dname s suc ha s Advi l an dAnacin . Combine dOT C sale s will equa l roughl y $1. 4 billion . Othe r synergie s ar e expecte din pre scriptio n drugs , wher e abou t 1.30 0 Robin s sale s representative s will b e adde dt o AHP' s U.S . forc e of 1.800 . Researc han ddevelopmen t effort s coul d b e enhanced . Robin s spend s abou t S6 5 million/yea r

o n R&D . an dAH Plai dou t S26 0 millio n thi s year , abou t hal f what dru g giant s Merc k

an dGlax o spend , say s health-car e analys t

Arvin dBesai . of Meht a& Isal y (Ne w York) . *



# f

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# m ••i>S' -

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1 6 Chemicalweek'NovemOe r15 . 198 9 BW6WBWMUU.MHI3KIU M maas*alwr&i