Here is another incident stemming from the A-S 30 inch pipeline rupture of December 4, 2000. Although the facts are still being developed, this customer was also being supplied off of the A-S line and when it went down, HPL had to activate another pipeline to serve this customer from a different source or direction. This line may have had some liquids settled in the line or other sediments which became dislodged and ultimately may have caused a failure at Ameripol's boiler. This resulted in a fire which they claim caused equipment and product damages. Liquids are not identified in the quality specifications for the gas to be delivered to Ameripol, only not more than 20 grains of sulfur or 7 pounds of water vapor. Additionally, the contract does contain a waiver of consequential damages. Gary indicated to me that they told him that about $130,000 of the loss was a result of lost sales due to the inability to produce product. They have faxed us a written demand or notification which I will forward as soon as I receive it.
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Engineered Carbons/Ameripol Synpol