President’s Message: Clear Progress in Clean Air… Even Environmentalists Agree

While it’s no surprise to anyone in the chemical industry, now even staunch environmentalists and federal regulators are concluding that Texas has made great strides in air quality over the past few years.

Houston, once considered the nation’s dirty air capital, is on the verge of meeting federal limits for smog for the first time ever.  If the numbers hold as the smog season draws to an end, the eight-county region will meet the limit for ground-level ozone, the lung-irritating pollutant.

The Environmental Protection Agency cautioned that the data is preliminary and will be scrutinized in the coming months.  But at first blush, “the news is good,” EPA spokesman David Bary said.

From a peak near 120 ozone molecules per billion molecules of air, the number has dropped to 84 in the air we breathe, matching the current acceptable federal standard.  So, why the improvement? Environmental experts point to – in part – technological enhancements in chemical plant emissions controls.

Ozone, the key ingredient in smog, is produced when nitrogen oxides and volatile organic compounds, which are released from tailpipes and manufacturing sources, cook in sunlight.

Susana Hildebrand, the Texas Commission on Environmental Quality chief engineer, is cautiously optimistic that air quality will continue to improve. “The downward trend shows that this isn't a one-year event,” she said.

And according to a report by a local environmental group, Texas saw its absolute carbon dioxide emissions drop the most of any other state except New York.

The report, by Environment Texas, says that the Lone Star state’s carbon dioxide output from fossil fuels fell by 10 million metric tons between 2004 and 2007.

It is also around that time that Texas became the wind-power leader in the U.S., an industry that many chemical manufacturers supply.  At the same time, many electricity providers switched from coal to natural gas, which burns a lot cleaner.  The report says that on a per-capita basis, emissions from Texas electric generators fell 4% between 2004 and 2007.

The chemical industry in Texas has invested billions in pollution-control technology resulting in dramatic emissions reductions. Our industry is proud of its environmental stewardship and will continue to be a leader in air quality management and improvement.

Texas House Speaker Releases Interim Charges; Fiscal Concerns Abound

House Speaker    Joe Straus III

Texas House Speaker Joe Straus (R-San Antonio) has released the Interim Charges for House Committees.  Committees will begin holding hearings in 2010 on their respective charges and will submit their Interim Committee Reports to the legislature next December.
 
Legislators are clearly preparing for a fiscal meltdown.  Among the House Interim Charges, is consideration of tax changes that could boost state revenue and reinvigorate Texas’ flagging economy.

The charges include a review of whether tax exemptions have outlived their usefulness.  Straus asked the tax-writing Ways and Means Committee to “examine the state's major tax exemptions to determine how the current costs and benefits compare with the original legislative objectives.”  He also asked legislators to consider tax incentives that can help stimulate manufacturing, energy production, and the film and music industries.

On state spending, Speaker Straus expressed concern about overspending and waste, especially in health care funding.  Straus asked House lawmakers to scrutinize Medicaid caseload projections and health care spending in the general population, including possible overuse of medical imaging.  A recent analysis of Texas hospital discharge data found that magnetic resonance imaging charges for inpatient care at hospitals statewide doubled from $409 million to $819 million between 2002 and 2007.

Barring an emergency, lawmakers won’t gather in Austin for more than a year. With a prolonged recession and built-in problems in the state budget, they’ll face a host of difficult decisions on taxes and spending. Some have warned of a possible budget shortfall exceeding $10 billion or more, and few expect a repeat of the federal stimulus money that let the state avoid cuts this year.

“There’s no question that Straus is paying careful attention to the fiscal situation, and that's reflected in the charges,” said Dale Craymer, president of the Texas Taxpayers and Research Association.

Texas relies heavily on its sales tax, and receipts are down more than 12 percent in the fiscal year that began Sept. 1.  The two-year budget that lawmakers wrote this year assumes modest sales tax revenue growth of 0.5 percent this year and 4.2 percent next year.  But the hole from the stimulus money is the real concern.

“There is no escaping the fact that we've got about $13 billion of one-time money financing our current budget,” Craymer said, referring to the economic stimulus funds. “That money is going to go away in 2011. You're either going to have to replace it somehow, or you're going to have to eliminate the programs it supported.”

The state is expected to have $8.2 billion in the Rainy Day Fund by September 2011, but it takes a two-thirds vote of both houses to spend the money.  Analysts such as Craymer believe it may not be easy to get a supermajority. Conservatives may want to save it, as liberals push to spend more now.

Straus, in a letter to House members, said he wove pocketbook concerns all through his interim charges.  “During these difficult economic times, all of us feel a special obligation for the Legislature to find ways to encourage government accountability, maintain essential services, promote economic development and attract more jobs to Texas,” he said.

Each session, Comptroller Susan Combs has to estimate what the various exemptions, exclusions, deductions and discounts cost the Treasury for each tax that generates more than 5 percent of state revenue.  Her report listed breaks that, after adjusting for double counts and the sales tax exclusion for materials used in manufacturing, bestow nearly $16 billion this year.  Of that, more than $5 billion is from not applying the sales tax to services.

Dick Lavine, senior fiscal analyst for the Center for Public Policy Priorities, which advocates for low-income Texans, welcomed Straus' scrutiny of big tax giveaways.  Lavine, a former House tax policy researcher, said the exemptions study could be “a way to start plugging the holes” in Texas’ revenue base.

“We have a tax system that is filled with exemptions that may at one time have made sense, but nobody has gone back to look at them to see if they’re still accomplishing their objectives and are still the most cost-efficient way of getting to those objectives,” he said.

Craymer, who was budget director for former Gov. Ann Richards, said he doubts Straus and House leaders have even the outlines of a major tax overhaul in mind.  He said the next session would bring hard choices. Not only will the yawning budget gap be divisive, but lawmakers must also redraw legislative and congressional maps after the 2010 census.

“Ultimately, regardless of what charges are assigned, we know the next Legislature is going to be about the budget and redistricting – and maybe not much else,” Craymer said.

The House interim charges can be found here.

State Comptroller Projects $1 Billion Less in State’s Rainy Day Fund

Comptroller Susan Combs

Texas’ piggy bank will be almost $1 billion lighter than expected, according to a report released recently by Texas Comptroller Susan Combs. 

Combs revised her estimate for the State’s Rainy Day Fund to $8.2 billion, down from her January projection of $9.1 billion.

The primary culprit is falling natural gas prices, which will lead to less production and thus less tax revenue.  Every dollar in the Rainy Day Fund matters because that money is seen as key to plugging some of the budget hole that is expected to greet legislators when they return to Austin in 2011.

Legislators intentionally kept their hands off the Rainy Day Fund when writing the current two-year budget in anticipation of much leaner economic conditions down the road.  Federal stimulus money totaling $12 billion made it possible to preserve the Fund, but the state does not foresee any federal assistance in 2011.

Travis County District Attorney Appoints Environmental Crimes Prosecutor

Travis County District Attorney Rosemary Lehmberg recently announced the appointment of the agency's first full-time environmental crimes prosecutor, a position made possible through a grant from the Texas Commission on Environmental Quality (TCEQ).

Lehmberg has named Patty Robertson, an experienced white-collar crime prosecutor, to the position.  Robertson will be based in Travis County but will prosecute cases throughout the state.

The Travis County District Attorney's Office has statewide venue on most environmental crimes under Texas law, officials said.

“We are all responsible for the safekeeping of our natural resources,” Lehmberg said.  “Each of us is a victim when individual and corporate polluters disregard that responsibility.”

TCEQ creates Office of Water; Appoints Stepney to head New Department

The supply, quality and planning of the state’s water continues to be an escalating regulatory issue. Last month, the chairmen of the House and Senate Natural Resources committees – Sen. Kip Averitt (R-Waco) and Rep. Allan Ritter (D-Nederland) hosted the H2O4TX water event in Fort Worth. Water was also a major topic in the recently released House interim committee charges.

The Texas Commission on Environmental Quality (TCEQ) has now announced the creation of a new Office of Water, which will have oversight over the agency’s existing water planning, supply and quality divisions. In a news release, TCEQ Chairman Bryan Shaw said the move is an acknowledgment that the agency “must put even more focus on water issues to ensure that there will be adequate water quality and quantity for future demand.”

The state’s population is expected to double over the next few decades while water supplies are expected to decline significantly over the same period.

Some state leaders, such as Senator Averitt, are calling for a dedicated revenue stream to fund a water plan that would bridge the impending water shortfall.

TCEQ is hoping better coordination will help the state deal with what’s expected to be higher stresses on the water supply. “Over the past several years, much of the state experienced a fierce drought,” said TCEQ Commissioner Carlos Rubinstein. “Our agency’s response to the people and communities that suffered from this event was extraordinary, and this new Office of Water will ensure that we provide an even higher and more focused level of response.”

The agency named L’Oreal Stepney to head the new department. The release notes that Stepney has worked at the agency since 1992 and has a master’s degree in environmental engineering from the University of Texas.

TCC Submits Comments to EPA on “SIP-Gap” Rule Proposals

On November 23rd, TCC submitted comments on the Environmental Protection Agency’s (EPA) proposed rules that disapprove key revisions of the Texas State Implementation Plan (SIP) by the Texas Commission on Environmental Quality (TCEQ), claiming that they do not meet federal Clean Air Act (CAA) requirements followed by other states.

The comments were in reference to the following three proposals:

EPA has stated that it intends to take action on the Texas Qualified Facilities Program by March 31, 2010, the Texas Flexible Permits Program by June 30, 2010, and the NSR SIP by August 31, 2010.  If you have any questions or need additional information, please contact Christina Wisdom at (512) 646-6403 or via email at wisdom@txchemcouncil.org.

TCEQ also responded to the EPA’s proposed rules that disapprove key revisions of the Texas SIP by the TCEQ.  Below are PDF versions of the letters and comments on each of the rule proposals:

• TCEQ letter and comments on Flexible Permits (PDF) 
• TCEQ letter and comments on NSR Reform (PDF) 
• TCEQ letter and comments on Qualified Facilities (PDF)

Houston Ship Channel Economic Outlook Breakfast Provides Insight into Industry Challenges and Opportunities

The ACIT Houston Ship Channel region held its first Regional Economic Outlook Breakfast on December 3rd at Houston’s Brady’s Landing.  The event – attended by more than 150 people – was hosted by ACIT, TCC, and the East Harris County Manufacturers Association (EHCMA). 

Attendees heard presentations from refinery sector representatives, chemical sector representatives, the Port of Houston, and the Economic Alliance – Houston Port Region. 

“This event provides our members with an insight into the challenges that companies are facing during these tough economic times”, said ACIT President Hector Rivero.  “It is critical that we protect this important economic engine in the Houston Ship Channel.  These industries provide most of the investment, jobs, and tax-base in this region.”

The breakfast presentations are available to members in the members section of our website, by clicking here and logging in.  To view the photos click here.

ACIT Elects Steve Hazlewood of Dow Chemical as Board Chairman; Honors outgoing Chair, Cherie Laughlin

 

New ACIT Chair Steve Hazlewood

Outgoing ACIT Chair Cherie Laughlin with TCC President & CEO Hector L. Rivero

Outgoing ACIT Chair, Cherie Laughlin of Bayer MaterialScience, was recognized at the TCC/ACIT Annual Meeting in October.

Laughlin was elected in 2008 as the first woman to serve as Chair of the ACIT Board of Directors.  A respected industry advocate in the Houston-Ship Channel region, Laughlin was committed to growing and raising the visibility of ACIT across the state. 

Under her leadership, ACIT has grown to nearly 400 member companies.  Laughlin also helped raise ACIT’s profile with the East Harris County Manufacturer’s Association (EHCMA) where she also serves as a Committee Chair.  She facilitated joint events with EHCMA, bringing local manufacturers and suppliers together in support of a stronger industry.

After Prolonged Decline, Texas Manufacturing Expands

Texas factory activity showed its first signs of growth in more than a year, according to the Dallas Fed’s November survey of manufacturing executives.

The production index broke into positive territory for the first time since July 2008, according to the survey of 92 Texas manufacturers conducted between Nov. 17 and 24. Other key indexes – including capacity utilization, shipments and new orders – also moved into positive territory.

The employment index remained stuck in negative territory, implying that more manufacturers are still laying people off than hiring.  The average workweek also came in negative – but more than 16 percent of respondents reported increased work hours, compared with less than 7 percent in October.

It may be too early to declare a new positive trend in the state’s factories. Many of the manufacturing survey indexes showed significant improvement in September, only to ebb down in October. Several indexes of future activity dipped in November, but they remained in positive territory.  That suggests that manufacturers still expect demand to improve in the coming months, the Dallas Fed said.

To compile its manufacturing survey, the Dallas Fed asks companies whether output, employment, orders, prices and other indicators have risen, fallen or stayed the same over the previous month.  The Dallas Fed then calculates an index for each indicator by subtracting the percentage of respondents reporting a decrease from those reporting an increase.  A positive reading means more respondents reported improvement over the last month.  A negative reading means more respondents said things got worse.

British Climate Researcher Leaves Post amid Climate Change Scandal

The British scientist at the heart of a scandal over climate change research has temporarily stepped down as director of a prominent research group amid an internal probe that follows the release of hacked emails involving him and other scientists.

The University of East Anglia in the U.K. said Phil Jones, head of the university's Climatic Research Unit, had decided to step aside from the director's post.  The announcement comes less than a week before world leaders are set to meet for a climate summit in Copenhagen. The two-week conference, sponsored by the United Nations, is supposed to come up with tougher policies to curb greenhouse gas emissions and slow global warming.

Much of recent “global warming” scare is a result of research by Dr. Jones and his colleagues in East Anglia and around the world. But computer hackers recently stole emails and documents from the East Anglia center that suggested Dr. Jones and other environmentalists tried to squelch the views of dissenting researchers and advocated manipulating data.

The fallout from the hacked emails is spreading beyond the U.K.: Penn State University confirmed that Michael Mann – a climate scientist on its faculty who figures prominently in the emails – is under “inquiry” by the university.

Dr. Mann’s work reconstructing historic global temperatures has, over the past decade, become a focal point of debate. Penn State said in a statement that its inquiry, which stems from disclosed emails written by Dr. Mann, is a preliminary step to determine whether a full investigation is needed. He didn't respond to requests for comment.

President Barack Obama's top science adviser – John Holdren, a climate scientist who sent one email among those hacked and posted – is due to testify on Capitol Hill.  The House committee holding the hearing has billed it as a way to explore “the urgent, consensus view... that global warming is real, and the science indicates that it is getting worse.” Dr. Holdren's office declined to comment. Dr. Holdren has long spoken of the “overwhelming” evidence of man-made global warming.

The emails have led to calls for probes into the state of climate science from U.S. politicians skeptical that humans are causing global warming. They have also drawn criticism from some high-profile environmentalists.

In one email, Dr. Jones suggested to Dr. Mann that they should try to keep out of scientific journals the research of scientists who challenge the idea of man-made global warming. We “will keep them out somehow -- even if we have to redefine what the peer-review literature is!” the email says.

The East Anglia institute that Dr. Jones headed has become a key player in building evidence for the U.N.’s argument that humans are behind global warming.  In statements released by the institute in recent days, Dr. Jones has defended the integrity of the institute’s scientific work, while saying that he and his colleagues “accept that some of the published emails do not read well.”

On Tuesday, Dr. Jones said the East Anglia institute couldn’t continue to do its work with him as its director amid the controversy. “What is most important is that CRU continues its world leading research with as little interruption and diversion as possible,” he said in the statement. “After a good deal of consideration,” he wrote, he decided to step down from the director’s job pending the investigation.

Longtime critics of the premise that humans are responsible for climate change cheered word of the move by Dr. Jones and the inquiry into Dr. Mann. “I think we're making headway,” said Oklahoma’s James Inhofe, the senior Republican on the Senate Environment and Public Works Committee.

Inhofe sent a letter to the chairwoman of the Senate Environment and Public Works Committee, Barbara Boxer (D-California), that called for hearings on whether any U.S. laws were broken by the scientists, or “any taxpayer-funded research deliberately obscured or manipulated.” A spokesman for Ms. Boxer didn't immediately respond to a request for comment.

President Obama Unveils Greenhouse Gas Proposal; Will Attend Copenhagen

Originally scheduled to go to the December 7-18 talks in Denmark on December 9, the eve of a ceremony in nearby Oslo, Norway, where he will collect the Nobel Peace Prize, the White House said Obama will now return for the final days when most of the hard bargaining is likely and dozens of other leaders are slated to attend.

President Barack Obama

The White House said the United States would pledge in Copenhagen to cut its greenhouse gas emissions roughly 17 percent below 2005 levels by 2020, a drop of about 3 percent below the 1990 benchmark year used in U.N. treaties.

That figure is in line with legislation passed by the U.S. House of Representatives but is less ambitious than a 20 percent reduction sought in a Senate version that has been delayed.

U.S. negotiators consulted with lawmakers before arriving at the proposed figure and said it would be flexible based on the outcome of final domestic legislation.

Senate support will be required to ratify any treaty that comes out of Copenhagen or follow-up meetings, so U.S. envoys are eager for backing from lawmakers.

The White House said it hoped Obama’s attendance would give momentum to the Copenhagen talks.  “The president going to Copenhagen will give positive momentum to the negotiations, and we think will enhance the prospects for success,” said Michael Froman, a deputy national security adviser to Obama and one of his climate advisers. Activists and other officials agreed.

“If he can deliver on his election campaign statements that Copenhagen needs to be a success by coming to Copenhagen himself, that I think will be critical to a good outcome,” U.N. climate chief Yvo de Boer told reporters in Germany.

Danish Prime Minister Lars Lokke Rasmussen said: “I am pleased the American president will visit Copenhagen. The strong commitment of the American president to the climate change issue is very valuable.”

Some green groups were disappointed that he would miss the climax when other leaders arrive. “The right city, the wrong date; it seems that he's just not taking this issue seriously,” said Kyle Ash, Greenpeace USA climate policy advisor.

More than 75 world leaders have confirmed they will attend the conference, which the Danish hosts hope will clinch a deal laying the foundation for a treaty to be agreed to in 2010.

The European Union is pressing for more aggressive cuts and has pledged at least a 20 percent cut in its emissions by 2020 compared to 1990 levels.  Though the U.S. figure was constrained by the bills in Congress, some environmentalists said it could have been stronger.

“The President needs to do more than just show up; he must ensure that the United States promotes real solutions, including stronger emissions reduction targets and funding for developing countries to deal with climate impacts,” said Friends of the Earth President Erich Pica.

Looking beyond 2020, the United States will also propose emissions cuts of 18 percent by 2025 and 32 percent by 2030 compared to 1990 levels, White House officials said.

Many governments and analysts have blamed the U.S. failure to propose a carbon-cutting target sooner for the delay in agreement on a full climate treaty.  “In the last two years, we have wasted a lot of time on marginal issues, technical issues, we haven't focused on the core questions in the negotiations,” Yu Qingtai, China's climate change ambassador, said on Wednesday.

Yu hinted that China would bow to a milder ambition for the summit in Copenhagen: “We think that the actual content of whatever is achieved is more important than the title of the document that is produced.”

China had previously said only that it was “studying” the Danish proposal to defer agreement on a full treaty until 2010.  The United Nations’ de Boer said the world was depending on U.S. leadership. “The world is very much looking to the United States,” he said.

Senate Democrats Aim for Climate Change Bill Passage in Early 2010

U.S. Senate Democrats will attempt to pass a climate change bill in “early spring” of 2010, Senator John Kerry told reporters, further complicating prospects for an international summit on global warming in December.

Many countries are looking to Washington to take a lead in the drive for an international agreement but this depends on action in Congress. The House of Representatives has passed a bill already but the issue is moving slowly in the Senate.

Kerry said Democrats would try to pass a bill to reduce U.S. carbon dioxide emissions early in the year after approving legislation to revamp the U.S. healthcare system and financial industry, all major priorities of President Barack Obama.

Kerry spoke to reporters after a meeting with Senate Majority Leader Harry Reid and chairmen of committees that have oversight of the climate change legislation.

Kerry, who heads the Senate Foreign Relations Committee and is leading Senate negotiations on a compromise bill to tackle global warming, said he and other Democrats were working toward “trying to see if we can get this to the (Senate) floor sometime in the early spring, as early as possible.”

Last month, Kerry had said he hoped the outlines of a compromise climate bill could be sketched out before the December 7-18 global warming summit in Copenhagen that will be attended by some 190 countries.

But when asked about the likelihood of that happening, Kerry would not commit to providing the “framework” of legislation before the Copenhagen meeting.

The U.S. House bill requires a 17 percent reduction in U.S. industrial emissions of carbon and other greenhouse gases by 2020, from 2005 levels.

With delays in Congress and divisions between developed and developing countries, the United Nations and Denmark acknowledged on Monday that it would not be possible to reach a binding international treaty to limit greenhouse gas emissions before mid-2010 at the earliest.

While White House spokesman Robert Gibbs says President Barack Obama still prefers legislation on climate change, the EPA has declared greenhouse gas emissions like carbon dioxide pose a danger to the public’s health and welfare was done in response to a court-ordered timetable, set into motion by a 2007 Supreme Court decision.

Gibbs suggested the timing of the EPA announcement and the opening of a major climate change conference in Copenhagen was ‘coincidental’.

Time Magazine Names Dow’s Powerhouse Solar Shingle a Best Invention of 2009

Time Magazine has named the Dow Chemical Co.’s Dow Powerhouse Solar Shingle as one of the 50 best inventions of 2009.

Joining the ranks of inventions like a new NASA rocket, Tweeting by thinking and an edible sports car, the roof shingle that doubles as a solar panel, came in at No. 13.

“The introduction of the Dow Powerhouse Solar Shingle exemplifies Dow’s commitment to delivering innovative solutions to the world’s most critical challenges,” said Jane Palmieri, managing director of Dow Solar Solutions, in a press release. “This groundbreaking technology will make affordable renewable energy a reality now and for future generations.”

Dow said the solar shingles reduce installation costs since it eliminates the need for separate installation of roof shingles and solar generating shingles.

The solar shingles are expected to be available in limited quantities by mid-2010 and more widely available in 2011.

In October, the solar shingle was named on a list of the “Top 10 Solar Technologies to Watch Out For.”

BASF to Divest Clear Lake Facility

BASF Corp. has signed an agreement to sell its Clear Lake manufacturing facility to a unit of Gulf Bayport Chemicals LP.

Pasadena-based Clear Lake Chemicals LLC, a Gulf Bayport subsidiary, will take over the site and manufacturing equipment and will continue to produce specialty surfactants being made at the site for BASF customers.

Financial terms of the deal, expected to close by Dec. 31, were not disclosed.

As part of the agreement, BASF will transfer 15 employees to Clear Lake Chemicals. Ellen Bravo, a company spokeswoman, said Monday that five other employees would be given a chance to apply for jobs at other BASF facilities by the end of the year.

“The asset sale of the Clear Lake manufacturing site is part of BASF’s ongoing manufacturing asset review,” said Simon Medley, group vice president, care chemicals and formulators, for BASF North America. “The sale of this site is another step in our process to realign our business to ensure long term profitable growth.”

BASF, based in Florham Park, N.J., has two other specialty chemicals plants in the Gulf Coast region, in Port Arthur and Pasadena. Bravo said neither of those plants is being considered for divestiture.  Products manufactured at the Clear Lake plant are sold into the coatings, construction, agricultural, and personal care markets.

Huntsman Makes Stalking Horse Bid for Tronox Assets Ahead of Dec. 8 Auction

Huntsman's $415m bid for most of the pigment plants of bankrupt producer Tronox falls on the low end of similar deals, according to a banker – a finding that drew no immediate comment on Wednesday from the companies.

Huntsman made a stalking-horse bid for most of the titanium dioxide (TiO2) plants of Tronox. Huntsman’s offer will establish a floor on bids during an auction scheduled for 8 December.  If no one beats Huntsman, then it would win the auction.

Huntsman’s bid falls at the low end of similar merger and acquisition (M&A) deals in the chemical industry, according to a statement by Stephen Floyd, a managing director of Young & Partners.

Huntsman’s bid was so low because of the limited number of possible buyers and the unusual makeup of the bankruptcy sale process, he said.  In addition, there is a lack of financial sponsor activity for deals in the chemical industry.

Huntsman's bid does not include Tronox's TiO2 plant in Savannah, Georgia.  The Tronox plants included in Huntsman's bid include Hamilton, Mississippi; Kwinana, Western Australia; and Botlek, the Netherlands.

Reliance, Sinopec, TPG Said to Have Weighed LyondellBasell Bids

China Petroleum & Chemical Corp., the nation’s biggest oil refiner, and U.S. buyout firm TPG have weighed a bid for bankrupt chemicals company LyondellBasell Industries AF that could challenge Reliance Industries Ltd.’s offer of about $12 billion, said two people familiar with the matter.
 
Sinopec and TPG reviewed LyondellBasell’s finances and discussed making a joint bid, according to the sources who asked not to be identified because the negotiations are private.  It was unclear whether one or both of the parties will proceed with an offer, and the sale process remains fluid, they said.

LyondellBasell collapsed less than two years after it was created in a $12.7 billion buyout led by billionaire Len Blavatnik’s Access Industries Holdings.  Any bids for Rotterdam-based LyondellBasell, which filed for bankruptcy in April, may compete against a reorganization plan including a rights offering backstopped by Access, Apollo Management LP and Los Angeles-based Ares Management LLC.

TPG, the Fort Worth, Texas-based buyout firm founded by David Bonderman, made an earlier bid to backstop the offering that was rejected, according to sources.  Representatives at TPG, Access and Apollo declined to comment. Sinopec’s Beijing-based spokesman Huang Wensheng also declined to comment. Bill Mendel, an Ares spokesman, confirmed the investment firm is part of a group backstopping the rights offering.

Reliance, the oil refiner and explorer controlled by Indian billionaire Mukesh Ambani, on Nov. 21 said it offered an undisclosed amount of cash for a controlling stake in the company.

LyondellBasell was formed in December 2007 when Basell AF bought Houston-based Lyondell Chemical Co. About 55 percent of sales last year were in North America and 38 percent in Europe.

The company has $7.06 billion in bonds and loans maturing next year and an additional $20 billion due through 2027, data compiled by Bloomberg show. LyondellBasell had revenue of $50.7 billion in 2008, with about 34 percent coming from fuels, including gasoline, diesel, jet fuel and additives. About 30 percent was from chemicals, including ethylene, propylene, benzene and acetic acid, and 35 percent was from plastics, according to its annual report.

2009 Texas Capitol Collectible Ornament For Sale

The 2009 Texas Capitol Collectable Ornament is for sale at www.TexasCapitolGiftShop.com.  Proceeds from the sale of ornaments provide revenue for educational programs, preservation projects, and exhibits at the historic Texas Capitol, our state’s grandest building.

This year’s ornament features a reproduction of the antique bronze doorknob that is found everywhere in the Capitol.  Decorated with an engraved gold Lone Star, our state’s iconic symbol, this three dimensional replica is sure to please supporters or historic preservation as well as collectors of this popular series.

Upcoming TCC & ACIT Events

January 14-16, 2010 – Houston Wellness Assn.’s 2010 Wellness Symposium at the George R. Brown Convention Center in Houston.  Click here for details.
 
June 7 – 10, 2010 – TCC/ACIT EHS Seminar, Moody Gardens, Galveston.  Call for Presenters click here. Look for more exhibit information in January, 2010, and registration information in March, 2010.