Tax bill: mixed effects on Standard OilBy Colleen Walsh

As President Reagan reached for hispen to sign the new tax bill into lawin October, Standard Oil executives

evaluated the bill's mixed effects on thecompany.

On the plus side, Standard Oil won itsbattle to have two big projects - portionsof the Endicott project in Alaska'sBeaufort Sea, and the modernizations atKennecott's Bingham Canyon mine in

Utah - exempted from the new taxrevisions.

'These projects were exempted becausemuch of the work was planned for andbegun under existing tax laws," explainsJames V. Phillips, vice president, Tax.

In addition, the new tax bill sets alower corporate tax rate, down from amaximum of 46 percent to 34 percent,by 1988.

"In Standard Oil's case, the reducedrate is good news, since we have con-

sistently paid more than our fair sharein taxes," Phillips says.

But the news is tempered by loweroil prices and an anticipated decline inprofits, he adds.

"We would benefit more from the lowertax rate if the price of oil were higher."

In addition, the bill eliminates theInvestment Tax Credit (lTC) and stretchesout depreciation schedules.

The ITC allowed companies to subtracta portion of their investment in new

equipment from their taxes.Depreciation schedules reduce a firm's

taxable income by allocating the costof capital goods (new plants or equip­ment) over a prescribed period of time.

Lengthening the schedules meanscompanies will be able to claim lessdepreciation allowance each year.

"We can live with the new law,"Phillips says, "I just hope they don'tchange it again - at least for a few years."

•1

November/December 1986 • Vol. 1, No.3

mSensor scopesout thirsty crops6 Tax credit couldspur oil hunt

Warrensville'sKeener and Gardner

D Wildlife refugemay hold next

'super giant' oilfield

Earnings drop,dividend unchanged

Although Standard Oil 1986 third­quarter earnings dropped 85 percentfrom a year ago, due largely to

lower petroleum prices, Chairman RobertB. Horton expressed optimism about thefuture.

As reported in late October, third­quarter net income dropped from$346 million in 1985 to 552 millionin 1986.

The dividend, however, remainedunchanged from last quarter (and a yearago) at 70 cents a share.

Income for the first nine monthsdropped from nearly 51.1 billion in 1985to a loss of $376 million in 1986.

Third-quarter revenues decreased from53.4 billion in 1985 to 52.2 billionthis year.

"Our Alaskan oil is now selling for$12 to $13 per barrel; higher oil pricesand the effect of our recent strategicmoves, which were expressed in our second­quarter special charges, should improvefuture results," Horton said.

Alaskan crude oil sales prices averaged$10.65 per barrel for the company inthe third quarter versus $26.45 a year ago.

As part of strategies to strengthenthe company, capital and explorationexpenditures were cut from $2.1 billionfor the first nine months of 1985 to51.4 billion during the same period in 1986.

"We now expect to spend about 51.9billion in capital and explorationexpenditures for all of 1986, downsignificantly from $2.8 billion in 1985.This reduction is indicative of ourresolve to deal realistically with today'senvironment and our expectations forthe near future," Horton said.

Pay study complete

Employees will receive full detailsby mid-November about therecently announced compensation

program review.Salary increases, although on a more

selective basis, also will resume inNovember.

Corporate Human Resources is workingwith business groups to iron out programspecifics.

Preliminary results of the programreview were announced in late October.

The new program will emphasize payfor performance, and continue thecompany commitment to pay market rates.

"This restructuring will primarilyaffect the petroleum-related businesses,including chemicals and corporatestaff, but will have little, if any, impactupon our non-oil-related businesses,"Frank E. Mosier, Standard Oil president,stated in a letter announcing results ofthe review.

The study concluded that some profes­sional. administrative, and supervisoryemployees are paid higher rates than theircounterparts in comparable businesses.

"We have elected, however, not toreduce salaries. As a general rule, untilour pay structure in these affected areasis more in line with market conditions,merit increases will be smaller and lessfrequent. and will be more selectivelyadministered."

Looking backHarry L. Borges (left) and Floyd S. (Solon) Butcher, examining adisplay of serviceaward pins, were among 1,640 Quarter Century Club members at the group's 45threunion, Oct. 3-4, in Cleveland. Borges, who retired in 1978 after 37 years ofservice, still calls Cleveland home. Butcher retired in 1969 after 40 years and livesin Florida.

Deidre Bush, former senior landman atStandard Oil Production Company:"Going back after working for 10 yearsfeels like jumping off acliff."

Anchorage and most recently in Houston."My department obtained land-use

permits from various governmentagencies," Bush says, "so I've had plentyof exposure to energy and environmental

Turn to EMPLOYEES, 3

By Jim Marino

Skyrocketing health-care costs,aggravated by lengthy hospital staysand high doctor fees, have

prompted Standard Oil to adopt amedical pre-certification programcalled ReviewPLUS.

The program is designed to provide asecond opinion on major medical treat­ment and to screen excessive health-carecosts.

The plan does not address any medicalprocedure which does not involve anovernight hospital stay.

Through the use of ReviewPLUS,Standard Oil could realize a savings of"10 times the program's cost," whilepotentially improving the caliber of healthservice, according to Paul S. McAuliffe,director, Benefits, EEO & Labor, inCleveland.

Some 12,000 present and retiredemployees covered by the basic StandardOil Medical Aid and Health Care plansare eligible for the ReviewPLUS

Turn to REVIEWPLUS, 8

Photo by Ginny Horner

By Dan Goldberg

Employees 'hit the books'on educational leave

How to beatsky-highmedical costs

I f you think it's tough for children togo back to school after a long, lazysummer, imagine how it feels to leave

your job after five or 10 years to returnto college.

Standard Oil grants educational leavesto employees who want to earn advanceddegrees to improve their job skills.

"I enjoy walking to school, rather thancommuting to work every morning,"says Catherine Jessel, who has taken aleave from Sohio Oil Retail Marketingto attend the Alfred P. Sloan School ofManagement at Massachusetts Instituteof Technology.

Jessel's MBA studies focus on fieldsunrelated to her previous positions asa chemical engineer and marketingsystems analyst.

"Although it's not a typical path forMBA studies, I want to get into organi­zational behavior work ," says Jesse!.''I'm interested in getting into the'human side' of business. There's a realneed in industry for study in that area."

Died re Bush, on the other hand, saysstarting law school at Tulane Universitythis fall was a natural progression from herwork as a senior land man for StandardOil Production Company (SOPC), first in

in the Mackenzie Delta area inthe Canadian Beaufort Sea.

We also know there are naturaloil seeps, apparent from oil­stained rocks on the coastalplain. And we have conductedimportant seismic work there.

Looked at objectively, thedecision to open the coastal plainto leasing should be an easy one.The area represents less than 8percent of ANWR. Forty-fourpercent of the refuge has beenpermanently classified by theFederal government as "wilder­ness status." But the decision onANWR involves politics, and thatbrings into playa different setof rules.

When Congress passed theAlaska National Interest LandsConservation Act of 1980, it rec­ognized the resource potentialof the coastal plain by requiringthe Secretary of the Interior toconduct a thorough resourceevaluation of coastal plain acre­age. This evaluation was to becompleted and a report submittedto Congress by September of thisyear. The report is currently heldup by a lawsuit filed by environ­mental groups that seek inputinto the Secretary's report. Thesuit is expected to be settled latethis year.

Once the report is made, Con­gress will decide whether to makethe coastal plain available forexploration. Environmentalgroups are hard at work lobbying

Turn to EXPLORE, 4

19-million acre Arctic National WildlifeRefuge on Prudhoe Bay may be

next "super giant" oilfield..

vel oped U. S. oilfields will dropfrom almost 9 million barrels aday to less than 4 million barrelsa day as oil-producing fields aredepleted.

Even with additional invest­ment, the existing North SlopeoilfieJds, which currently supply20 percent of U.S. domestic oilproduction, will be producing ata combined rate of only about600,000 barrels a day by the turnof the century - about a third ofcurrent North Slope productionlevels. Unless we find new oilreserves, (and a lot of them) wewill have no alternative but tosubstantially increase crude oilimports.

Realistically, we have no choice.We will have to increase imports.Only an extreme optimist wouldexpect to explore and find 5 mil­lion barrels a day of new produc­tion in the next 14 years - espe­cially at today's crude prices. Butby exploring where we have thebest chances of finding very largereserves, we may be able to con­trol the extent of those increasesin imports. This can occur how­ever, only if Congress is persuadedto open the coastal plain forleasing.

The hopes of finding a largeoilfield on the coastal plain, atthis point, are based primarily ongeological and geophysical data.We know that ANWR is sand­wiched between the world-classoilfields of the Prudhoe Bay areaand the recent large discoveries

Slandard Oil has a proven record in prolecling wildlife whileexploring for oil. More than 13,000 caribou comprise the Central ArcticHerd in Alaska. The herd is at least four times larger today thanin 1975.

Prudhoe Bay

But unless its national impor­tance is recognized outsideAlaska, the door to developingthe ANWR coastal plain couldbe slammed shut.

Immediate exploration in theANWR coastal plain is importantbecause of the 10 to 15 years itwill take to bring any Arctic dis­covery into production. Duringthis same time, by the year 2000,production from currently de-

By George Nelson

George Nelson, presidentStandard AlaskaProduction Company.

The Arctic National WildlifeRefuge (ANWR) is a 19-mil­

lion-acre expanse of land, roughlyequal in size to the state of SouthCarolina. Located on Alaska'sNorth Slope, some 65 miles eastof the Prudhoe Bay oilfield,ANWR is every bit as importantto every state in the union, as itis to Alaska.

ANWR's coastal plain - asmall, legally defined sub-unitof ANWR - has potential forholding tremendous crude oilreserves. There is virtually unani­mous agreement in the oil in­dustry, the Federal government,and the Alaska state governmentthat the 1.5-million-acre coastalplain is, without a doubt, the bestopportunity anywhere in NorthAmerica for finding a "supergiant" oilfield or "giant" oilfields.

A "super giant" is an oilfieldwith 5 billion or more barrels ofrecoverable crude oil. PrudhoeBay is one of only 35 such fieldsever found anywhere in the world.A "giant" oilfield contains a bil­lion barrels or more of recover­able reserves.

PER S PEe T I V E

Explore ANWR now,cut import dependence later

.. .5 billion barrels

In September, as workers began returning toKennecott's Bingham Canyon Mine in Utah,Standard Oil announced an agreement to sellits interest in two smaller mines.

Kennecott's two-thirds interest in ChinoMines (Hurley, N.M.) will be sold to PhelpsDodge Corp. The remaining third belongs toa subsidiary of Mitsubishi Corp. The wholly­owned Ray Mines Division (Hayden, Ariz.)will be sold to Asarco Inc. Together, the minesemploy about 1,600.

Kennecott will receive about 5220 millionin cash for the sales, including the proceedsfrom related copper product inventories, whichwill be sold separately.

However, because Standard Oil carried theproperties on its books at a value that washigher than the selling price, the company willtake a loss in the -transaction.- a.lr-eadyaccounted for in the company's special chargestaken in the second quarter of the year.

The 5 billionth barrel"':' 6.r 210 billionthgallon - of crude oil to travel the trans-Alaskapipeline arrived at the pipeline's MarineTenninal in Valdez, Alaska, Sept. 15.

The crude completed its gOO-mile journeyfrom the oil fields of Alaska;s North Slope inaboulsix days: . ... ..

The' milestone marked nine ye(irs and threemonths since the first barrel of crude oil.flowed through the.pipeline,: '

. Oil produced from the North Slope accounts ..for .about 20 percent of the couri try's domesticcru~e oil production:' -

Fifty-six employees were laid off in earlyOctober at Chase Brass & Copper Companyin Euclid, Ohio, due to a drop in incomingorders at the company's copper sheet division.

The layoff affected hourly employees in thecopper sheet division. Chase, a Standard Oilsubsidiary, employs about 472.

Mine sales affect 1,600

Chase lays off in Ohio

Notables: 1million hours ...

New gas hits new markets

Sohio Oil's Toledo (Ohio) Refinery recentlycelebrated over one million work hours - andalso one year-without a lost-time accident.

Others in Standard Oil that have met orexceeded the one-million hours mark are theAlliance Refinery, Belle Chasse, La., (1:9 mil­lion), Standard Oil Chemical/Green Lake,Port Lavaca, Tex., (1.6 million), and Sohio Oil'sTransportation Department (more than 2 mil­lion), which includes pipeline and marineproduct transportation.

Standard Oil is now selling its new gasolineblends for fuel-injected automobile enginesin markets outside Ohio.

In the Southeast,The Gulf Products Divisionof BP Oil Company is selling High OctaneSuper Unleaded, which prevents clogged fuelinjectors.

In western Pennsylvania and West Virginia,Boron Oil Company's new premium unleadedproduct helps clean injector deposits andprevents them from recurring.

And in Detroit, Gas & Go stations are sellingsimilar, reformulated unleaded products.

The gasolines are similar to the new SuperCetron blend sold at Sohio stations in Ohiosince July.

Standard Oil Now is published bimonthly for employees andretirees of The Standard Oil Company and its subsidiaries.

All contents copyright ©1986, The Standard Oil Company.

For permission to reprint or adapt editorial matter,address correspondence to Editor, Standard Oil Now,200 Public Square 35-J. Cleveland, Ohio 44114-2375.Phone: (216) 586-5106.

Editor Staff WriterMarcia Meermans CoUeen Walsh

Staff Associate Editorial AssistantJim Marino Diane Rodgers

Standard Oil is an equal employment opportunity/affirmativeaction employer.

StandardOilNow

2 Standard Oil Now· November/December

'Survey includes exempt employees from Corporate. Standard Oil Chemical. Sohio Oil.Standard Oil Production. Old Ben Coal. and select Engineered Materials and formermetallurgical divisions. Employees holding multiple degrees are listed by school grantingtheir most recent degree.Sources: Professional Recruitment staff and Human Resources staffsfrom business groups.

Employees 'hit the books'on educational leave

year and retains them through graduation.They work in cycles between campusand corporation over several academicyears, tackling responsible assignments,Crow explains.

By the time their co-op experienceends, students have had a chance to sortout their professional futures, thecompany has benefitted from their work,and - perhaps most importantly - thecompany has enough performanceinformation on the students to know if itwants to extend full-time job offers.

One chief goal of the program is toattract top talent.

A former co-op student from theUniversity of Michigan is Janet Bednarski,who recently was hired as a chemicalengineer for Standard Oil ChemicalCompany in Cleveland.

"There was an effort to give me diverseassignments, including one withCorporate Engineering and another withResearch & Development," Bednarskisays.

Many of her colleagues in the chemicalengineering graduating class weren't aslucky as Bednarski.

"This was a bad placement year for'chemmies.' In my circle of friends, thosewho got into a co-op program usuallygot an offer," she says. "But I'd say athird of my chem class was without jobprospects just a few weeks beforegraduation."

However, those figures don't surpriseplacement coordinator Crow.

"We hire about 50 percent of thestudents we attract through PEP. Thejob market is tight and good studentsare in demand," says Crow.

"Our advantage with PEP is that wemake contact early on with promisingfuture employees."

Work/study employees home-grownBy Jim Marino

Corporate Human Resourcesrecruiters beam when asked howStandard Oil continues to attract

top-quality student engineers andscientists to its full-time job ranks.

"We grow our own," smiles David B.Crow, coordinator of technical recruit­ment. "And that's no exaggeration."

For more than 20 years, Standard Oilhas attracted college co-op students andsummer interns through its ProfessionalExperience Program (PEP).

As many as 100 student interns and60 co-op students from 50 colleges anduniversities participate in the PEP pro­gram at Standard Oil units corporatewide.

Co-op students spend considerablymore time with the company than summerinterns.

Co-op students receive a variety ofwork assignments at various locations,including Sohio Oil Company refineriesat Lima and Toledo, Ohio, and MarcusHook, Pa.; Standard Oil ChemicalCompany; Standard Oil Research &Development, and various retail market­ing and developmental engineering units.

Summer interns, on the other hand,usually are assigned to the Clevelandarea with Research & Development,Sohio Oil Company, or CorporateStaff units.

Crow considers the co-op programunique among major oil companies.

"We are one of the few oil companieswith such an extensive program," he says.

"PEP has won Standard Oil an impres­sive array of talented employees whopossess a wide range of engineering,scientific, business, and liberal artsbackgrounds," he adds.

Unlike the traditional summer intern­ship, the PEP co-op program recruitsqualified students in their sophomore

Janet Bednarski, chemical engineer, is a product of Standard Oil's co-op program.

o"""co~

0>::JooE.8o

.<::L...- ----''-- ----''--_---'D..

==107 121 197 234 340 343.

SOPC in Houston, always intended to goback to school- but admits he had secondthoughts after he made his decision.

"I hoped to work a few years inengineering, then go back to school andeventually get into a management role,"says Dee, who is concentrating on financeat Harvard Business School. "Experiencein different areas allows you to makemore intelligent decisions.

"On the other hand, I'm taking twoyears away from my career, in which Icould advance and gain experience," hesays. "Not only that, but it was anincredible financial decision - particularlyfor me, because my wife is still inmedical school."

Bush also points out the nonacademicadvantages of her move to Tulane, whichis in New Orleans.

'The weather is a change fromAnchorage and Houston," she says."And I'm a lot closer to Mardi Gras."

The program is available to all full-timeemployees, but there is no guaranteethat a job awaits their return.

The leaves are approved on an annualbasis. Employees must reapply forsuccessive years.

Employees do not collect a salaryduring their leaves, nor do they receiveany scholarship assistance from thecompany.

Dan Goldberg freelances forStandard Oil Now.

PhD candidateBen Kuratolo comments that he "didn'treally go back to school," when hestarted his educational leave in Januaryfrom his work as a senior chemist atWarrensville Research & DevelopmentCenter near Cleveland.

"I worked part time at Warrensville asan undergraduate," says Kuratolo. "Istarted working full time at the lab, andthen began work on my doctorate in thefall of 1981."

Kuratolo chose Akron Universitybecause of its reputation as a centerfor polymer science. He left the lab towork full time on the research projectthat will become his thesis.

"Some of the polymers I work with haveapplications in enhanced oil recovery,"says Kuratolo.

"That's one reason why Standard Oillikes employees to continue theireducation. The more we learn about ourareas, the better employees we can be."

John Dee, a reservoir engineer with

Continued from page 1.laws, which are my major interests. Ithink they will be the major legal issuesfacing us in the 80·s.

"1 wanted to go into some kind ofgraduate program eventually," says Bushof her decision to go back to school."Still, going back after working for10 years kind of feels like jumping offa cliff."

FormerVP onstage, campus

Glenn Blair ret~.r~d in 198?, but still"plays hIS part' m the busmess world.

Blair, former Sohio Oil HumanResources vice president, had a summerrole in the musical comedy "How toSucceed in Business Without ReallyTrying." The play was staged at a com­munity theater near his home in suburbanCleveland.

This fall, Blair traded his stage character,Twimble, a loyal mailroom employee ina large company, for a new role - visitingprofessor of management at OhioNorthern University in Ada, Ohio.

During the one-year appointment,Blair is teaching a full course load in­cluding management principles, humanresources, and small business.

"Teaching is one thing I've had in mindto do eventually in my career," says Blair."I've taught evening classes at collegesbefore, but this is my first full-timeteaching assignment."

But what of Blair's stage career? "Itwas something I started doing 25 yearsago when I had more time," says Blair,who also has sung in the choruses of TheCleveland Opera and The Cleveland

Orchestra. "I had time again this summer,and the show was something I couldn'tpass up.

"I probably won't be in another pro­duction for 25 more years."

Glenn Blair, center, is flanked by fellowactors in "How to Succeed in BusinessWithout Really Trying:'

Retiree completescollege stint"I'm known by some people as 'the guy

who couldn't retire,''' jokes CliffordShields, whose retirement from

Standard Oil in 1982 left him anythingbut bored.

The Lyndhurst, Ohio, residen t recentlyreceived an honorary doctorate inhumanities from Mount Union College,recognizing his past year's service asinterim president at the liberal arts collegein Alliance, Ohio.

Shields' involvement with educationbegan when he headed Standard Oil'sCorporate Contributions and UniversityRelations programs. After his "first"retirement, he served as a consultanton development programs at Kent StateUniversity and Case Western ReserveUniversity, and later as interim deanof Kent State's College of BusinessAdministration and Graduate Schoolof Management.

Shields, who remains active on theboard of trustees at Mount Union andin other educational organizations, sayshe's not anxious to find another admini­strative position. "It was enjoyable, butI'm looking forward to being a full-timevolunteer for a while."

Standard Oil Now· November/December 3

Where can you 'save abuck?'About 500 members of the Association ofDesk & Derrick Clubs met in Clevelandfortheir annual convention in September.Standard Oil President Frank E. Mosieraddressed the group at its closingbanquet. Excelpts follow from his speech,"Save a Buck, Make a Buck."

Boosting sales and slashing costs isthe heart and soul of survival for usall. You don't boost sales and cut

costs with grand general statements.You do it with hard work and keen

thinking. Everybody in our industry hasa huge personal stake - an undividedinterest - in helping with this task.

I believe that the personal victory willhave to be won in your own office, atyour own desk, and out on your ownderrick. And I tell you categoricallythat saving a buck here and making abuck there is the only thing we can trulycount on in our hour of need.

I've asked around Standard Oil forsome examples of people who have actuallythought up ways to save a buck or makea buck.

I'll start very simply - in the mailroomat Standard Oil's Corporate headquartersin Cleveland.

In the mailroom, Brenda Dumke is anexpediter of customer services.

Brenda's story has to do with a bookletthat we were mailing out to 100,000 peopleacross the world.

When the prototype of that booklet gotto the mailroom, Brenda discovered thateach copy weighed a hair over one ounce.

That "hair" is costly when you're talkingabout first-class mail. So Brenda warnedthe booklet producers about theextra weight.

Together they decided they could getunder an ounce by trimming one-sixteenthof an inch off one edge while the bookletwas being printed and assembled.

That tiny difference saved thousandsof dollars for Standard Oil.

Frank E. Mosier

Time, money saved at SOPC gas plantNow I want to talk about Robert Digbyand Tony Pickett - two roustabouts ata Standard Oil Production Company gasplant in Elmore, Okla.

In their plant, huge compressors squeezethe gas so it can be put into a pipelineand sold. There are eight of thesecompressors, and each one has six pistons.

Once a year, every year, these com­pressors are overhauled. And every time,at least one or two pistons have tobe rebuilt.

It used to take half a dozen peoplefive hours, hitting a pin on each pistonwith a steel bar, to free it up so itcould be removed.

Digby and Pickett figured out a way to

use a hydraulic jack to push the pins outof the pistons.

Not only is it much gentler on thepistons than bashing them with a steelbar - but it's also much safer.

Robert and Tony turned a five-hourmanual operation taking five people ­into a half-hour job for two people.They thought about their job - andschemed a way to save big money.

Safety heroes cut costsSafety is a way to save lots of money,quite aside from our moral duty to keeppeople alive and safe and healthy.

When you don't have to pay the costsof medical care or lost time, the savingis hard to measure. But it's there.

Take the case of our Green Lake, Tex.,acrylonitrile plant.

The people in this plant haven't had asingle lost-time accident since it openedin 1981.

That means 1.6 million man-hours forour own employees and another 1.4 millionman-hours for our contractors' people ­for a total of 3 million hours so far.

And this means everybody in GreenLake is a hero - because you don't havethis kind of record without beingabsolutely set on accident prevention.

Don't forget, when you have an accidentyou don't pay just medical costs - youpay the cost of replacing someone whilehe or she mends.

And when you figure up this overallcost, you should remember that you'respending bottom-line dollars - lostprofits - on those costs.

Quick action contains spillFrom safety to environmental caution,you can also save - or lose - tons ofmoney on environmental problems,depending on how you handle them.

Let me tell you about Frank Crase andhis crew when we had a spill this summerfrom a small pipeline in Ohio. (Crase

is maintenance & operation supervisorfor Marketing & Refining in Cincinnati.)

It was a product pipeline, carryingdiesel, and the line developed a leak aftersomeone banged into it and damaged it.

We wound up spilling diesel oil into acreek that ran into the Mad River - oneof the few natural trout streams in Ohio.

And the Mad River runs right into thecity of Dayton. So our liability couldhave been enormous.

But once we discovered the spill Frankand his people moved like lightning,

Working with Dayton area fire depart­ments, they had the spill contained andcleaned up within nine hours. And in onemore day, they had the pipeline repairedand back in operation.

They even built a little rock wall toprotect a rabbit nest they found rightnext to the hole in the line.

Drill technique taps savingsWhen it comes to drilling for oil, retireeGeorge Houlston, (former manager,Reservoir Engineering Division-Geo­science in San Francisco) gets the creditfor pushing an idea 10 years ago calledhorizontal drilling.

The theory was appealing.Once you drill down to the formation

you want - why not bend your string(drill pipe) and run it horizontally throughthe formation to reach more oil?

Nobody really made the idea work unlilour people did.

Now up in Alaska, Richard Reiley,Drilling manager, says each horizontalwell replaces two vertical ones - andthat saves us about $1,250,000 (a well).

That's enough of my specific stories.The only value any of them can have is

to get you thinking about one area oranother of your own company.

It's easy to think. up ways to save a buck.Believe me. We just have to put our

minds to it - and always keep alert,day by day.

Clinching thebig accountsE XpO '86 Opportunity Marketplace,

held recently in Houston, offeredminority and women business owners achance to learn more about how to selltheir products to big companies.

Representatives from Standard OilChemical Company and Standard OilProduction Company (SOPC) shared abooth at the event.

These types of fairs are sponsoredannually by cities across the nation,explains David R. Bridgeman, managerof Corporate Materials Management inCleveland. A similar fair was scheduledNov. 4 in Cleveland.

Tom Getz, SOPC senior contracts engineer,recently helped distribute Standard Oilinformation in Houston at Expo ,'8G,a business fair for minority and womenbusiness owners.

Explore ANWR now,cut imports laterContinued from page 2.congressmen from all 50 states to denyaccess to that 8 percent of the refuge. Thisis despite our excellent environmentalrecord in Arctic oilfields that we havedeveloped under similar circumstances.

Alaska's Congressional delegation issolidly behind the effort to open ANWRto exploration. But they have a difficulttask in trying to convince their colleagueson Capitol Hill.

The political reality is that manycongressmen and senators see this as anissue involving only Alaska, with little orno effect on their own constituents. Theselegislators also see in the ANWR issuethe opportunity to gain support from theorganized environmental lobby or otherlegislators interested in the issue, withoutcreating a problem back home.

The oil industry is aware of the difficultjob ahead. Efforts are under way to tellthe industry's story on Capitol Hill andto other industries with a stake in theANWR issue. We need all the help we can -get, and we encourage all Standard Oilemployees to become active supportersof opening the ANWR coastal plain toexploration.

When all is said and done on the ANWRissue, and the last Congressional vote iscounted, we can either look forward todrilling the best prospect on the entireNorth American continent, or we can trustour future to OPEC.

There should be no doubt as to whichoption better serves us all.

4 Standard Oil Now· November/December

o NTH E M 0 V E

Wessells

• KennecottCharles C. Karpakis is promotedto director, Operations Analysis,Budgets & PerformanceReporting at Salt Lake City.

In Law, promotions includeJoseph T. Dattilo, seniorattorney; and Peter D. Wilbur,attorney.

In Tax, promotions includeLynne Alfred, associateTax counsel; Paul M. Barlak,senior Income & Franchise Taxaccountant; Mitchell E. Bryk,state Tax audit coordinator;Raymond N. Fritz, director,Tax Planning; Helen Jensen,senior Tax attorney; William A.Leyser, manager, Tax compliance& systems; David L. Siders,director, Taxes (mining); andPaul D. Wessells, associateTax counsel.

New employees includeM. Michael Cuellar, Income &Franchise Tax accountant;Michael J. Delaney, Income &Franchise Tax accountant; andJames J. Sukys, Tax auditspecialist.

• Chase Brass andCopper Company

At Shelby, N.C.: New employeesin the Narrow Strip Divisioninclude John P. Lappie, seniorcontrols engineer; William R.Murray Sr., electrical engineer;and Michael Tassitino,supervisor, Tinning, Wastewater& Chemical Milling.

Harvey A. Powers is promotedto manager, Accounting &Control from division controllerin Euclid, Ohio.

David E. Ritchie joins RodDivision at Los Angeles asmanager, Western Division.

Leyser

At Alliance (Belle Chasse, La.)Refinery: Michael J. Tarjanis promoted to manager,Engineering & Maintenancefrom Cleveland.

At Lima (Ohio) Refinery:Transfers from Clevelandinclude Steve Deley, OperationsDevelopment engineer; T. A.Doolittle, process supervisor­Lubes; Thomas R. Gilson,Operations Developmentsu pervisor- Lima IntegratedUnit/aeromatics; and MambouhS. Hamsho, chief inspectionengineer.

PauJ W. Oves transfers asmanager of operations fromCleveland.

At Marcus Hook (Pa.l Refinery:Robert H. Pearce is promotedto Human Resource managerfrom Toledo Refinery.

At Toledo (Ohio) Refinery:Kenneth W. Ward is promotedto supervisor, PersonnelAdministration from Lima(Ohio) Refinery.

Decker

In Corporate Control, promo­tions include Robert J. Esson,systems development coordi­nator; and Daniel J. McCormick,business analyst.

Terry F. Lamore is transferredas business analyst fromLexington, Ky.

In Corporate InformationManagement, promotions includeRobert E. Decker, manager,Corporate Staff Facilities;Roger S. Erickson, manager,Executive Support Systems;Clarence F. Jeffries II, manager,Corporate Telecommunications;and D. Vaughan Matthews,senior Information Systemsconsultant.

In Finance, promotions includeRonald P. Vargo, director,Financial Trading and W.Christopher Hawes, seniorFinancial Planning associate.

SkullyQuinn

At Cleveland: In PetroleumProducts & Refining, Linda A.Kohar is promoted to leadprogrammer analyst.

In Retail Marketing, promotionsinclude Harrison T. Bubb,vice president, Truckstops &Automotive Services; Bruce A.Buller, manager, TransactionProcessing; Kathryn L.McAuliffe, administrative &project engineer; David A.Snively, vice president, RetailMarketing; and Donald R.Townley, administrative &project engineer.

Timothy F. Cepelnik transfers assenior information specialist.

In Wholesale Marketing &Distribution, promotions includeRoss J. PiJIari, vice president;Steven A. Richardson, lubesanalyst; and Thomas L. Wolff,supervisor, Terminal AutomationSupport.

At Jacksonville, Fla.: Keith M.Charity is promoted to terminalmanager II from Atlanta.

At Cleveland: Promotionsinclude Joseph G. Curatolo,Patent & License Counsel­Business Group; F. Harlan Flint,director, External Affairs/Cleveland; David P. Gillespie,manager, ApplicationsMigration, Corporate Informa­tion Systems; Anne C. Quinn,project manager, Acquisitions& Divestitures; Virginia M.Rogers, manager, ExecutiveAssessment & Development,Corporate Human Resources;Carol L. Skully, manager,conference planning, PublicAffairs; Thomas G. Watson,captain, Aviation; andCharles B. Wheat, manager,Executive Communications andSupport, Executive Staff.

Kenyon C. Gilson, generalmanager, Gas Task Force, trans­fers from BP Oil International.

• Corporate

McAuliffeBuller

Langley. Inventory/SupplyPlanning supervisor; John A.Maslen, senior port captain fromPuerto Armuelles, Panama; andCharles A. Rasko, manager,Marine Contracts & Claims.

Charles E. Taylor is promotedto general manager, MarineTransportation from CorporateContributions & CommunityAffairs.

Nora J. Elzeer transfers asmanager, Marine Budgets fromChase Brass & Copper Company.

At Puerto Armuelles, Panama:Robert C. Baldwin starts asport captain.

At Vandalia, Ohio: Joel Nedrowis promoted to project engineer.

Kohar

Hanna moves to BP

Hanna

. Hugh D. Hanna,Sohio Oil senior

vice-president for RetailMarketing,joins BP OilInternational, London,Dec. 1.

Hanna, with 34 yearsof gasoline marketingexperience, will headBP's Retail BusinessDevelopment Unit.

The process of tem­porarily exchangingexecutives betweencompanies is called"secondment" in Eu­rope. It is a means ofsharing information andexpertise.

While other Standard Oil employees have been secondedto BP, Hanna is one of Standard Oil's highest-rankingexecutives to represent the company at Britannic House,BP's headquarters.

A Denison University graduate and graduate of HarvardUniversity's 1981 Advanced Management Program, Hannajoined Standard Oil in 1952. He has held his present positionsince November 1984.

Wentz

• Sohio Oil Company

At Cleveland: Promotions includeAndrew F. Gliniak, main framesenior project leader; Charles L.Ryan, Gulf Systems analyst III;Mark L. Siezewick, GulfSystems analyst III; and John D.Taylor, Gulf Systems analystIII.

In Crude Trading & Transporta­tion, Gladys H. DeClouet startsas operations planning analyst IV.

Transfers include Mary A.O'MalJey, senior crude oil trader;and H. Larry Wentz, generalmanager-Crude Oil Trading.

In Transportation, intercompanypromotions include Frank E.Broocker, manager, Demurrage& Cargo claims; Stephen E.

• Standard Oil Research &Development • Standal'd Oil Chemical Company

•Jerry A. McClure joins asmaintenance supervisor­Industrial Chemicals Divisionin Lima.

Tazelaar

At Cleveland: Floyd M. Wheattransfers as senior engineerfrom Bridgeport, N.J.

Promotions include Donald W.Majcher, Natural Gas & Planningmanager; Jeffery F. Kole, senioranalyst, Financial Reporting &Budget; and George J. Tazelaar,manager. InternationalMarketing- Industrial ChemicalsDivision.

Majcher Kole

Transfers from Cleveland includeKenneth Eagle, planningassociate; Ralph B. Ender, seniorproject leader; and William R.Kovach, technology analyst.

Intercompany transfers includeMichaeJ J. King, projectleader: Frank A. Marsek, seniorchemist; Wendell H. MiJJs Jr.,senior research specialist;and Jackson S. N. Tung, seniortechnical specialist.

EnderVincent

Leonid A. Turkevich, researchassociate; and Alexander E.Velikoff, engineering specialist.

Intercompany promotions includeDavid J. Bammerlin, siteengineering manager; John C.Eagley Jr., engineering specialist;Yvonne Gibson-Robinson, projectleader; Frank J. Kocjancic Jr.,engineering specialist;Charles T. Scholl, engineeringspecialist; and Rene A.Vincent, senior engineer.

Gibson­Robinson

At Pleasant Valley Laboratory(Independence. Ohio):Christopher P. Eppig ispromoted to project engineer.

At Solon. Ohio: Robert M.Patterson transfers fromLexington, Ky. as venturemanager.

Transfers from Cleveland includeRobert P. Carter, venturemanager; Victor W. Hughes, Jr.,technical manager; and JeraldL. Maus, project coordinator.

At Warrensville: Thomas Johnstarts as project leader.

Promotions from Clevelandinclude Robert W. Collins Jr.,research associate; Victoria G.Garcia, senior engineer;

Patterson

Standard Oil Now· November/December 5

Sensor scopes out thirsty cropsBy Colleen Walsh

HoW do you tell if a personis sick? Take his or hertemperature.

Now farmers can do the same thing todiagnose crops, thanks to the Scheduler""Plant Stress Monitor.

This advance in agricultural technologyworks like a plant thermometer.

The device was developed by ateam of scientists at Standard Oil'sWarrensville Research & DevelopmentCenter near Cleveland and is nowmarketed by Standard Oil EngineeredMaterials, Niagara Falls, NY.

Infrared sensors in the Scheduler readand record plant temperatures. Thereadings tell farmers whether their plantsare "sick" ("stressed" or in need of water)or "well" (not stressed or adequatelysupplied with water), explains BronsonR. Gardner, senior R&D chemist for

Standard Oil Engineered Materials whoworks at Warrensville as technicalsupervisor for the project.

"Before the Scheduler, farmers hadno good, scientific way to tell how plantswere doing on a large scale," Gardnerexplains.

Research on the Scheduler is a spinoffof long-range work Standard Oil is doingin the field of biotechnology - thestudy and solution of problems affectingliving organisms.

When Gardner joined Standard Oilin 1984, he and Melvin E. Keener,research associate at Warrensville, wereencouraged to develop an innovative,marketable, cost-effective solution tothe irrigation problem.

Irrigation scheduling is critical inthe farming process, explains Gardner.Too little water can kill a plant; too

much can deteriorate plant quality, andirrigation methods are often time­consuming and expensive.

The Scheduler includes a micro­computer hooked to sensors that measureair temperature, sunlight intensity,relative humidity and plant temperature.

When pointed at a plant, the instru­ment,s computer receives and processesinformation. The processed data indicateswhether the plants need water.

The instrument can store data onup to 30 fields, and can graphically displayinformation on each field for up to14 days. This way, farmers can spottrends as their crops grow and develop.

Farmers tested the Scheduler insummer 1985, and several found it letthem cut back on irrigation without lossof yield. Those rave reviews triggered awhirlwind of activity.

"Our marketing people developedtheir sales plan led by Steve DeSutter,project marketing manager for theScheduler, at Warrensville. Bids wereopened to companies who made parts forthe device. I worked to expand thenumber of crops it could diagnose, whileengineers redesigned it," Gardner says.

The Scheduler had to be portable,easily pointed at crops, and lightweight.The redesigned Scheduler resembles amaneuverable "gun"- the part aimed atplants for the stress reading - attachedby cord to the microcomputer.

"There are people out there interestedin buying this product. It's just a matterof designing the right advertising andpromotional campaign," says J. DavidDunn, director, Business Developmentfor Engineered Materials in NiagaraFalls, NY.

The Scheduler already has attractednational attention. I t's now part ofexperimental research projects on a"futuristic farm" at Disney World's EpcotCenter in Florida.

P E 0 P L E

Family flies highwith Civil Air Patrol

c

'"01o2c

'"o>­.Dooff. ........

Lieut. Col. Gene Ashley (center) inspects Civil Air Patrol plane withMaj. Linda Ashley - his wile - and Maj. Paul Elliott.

I magine late-night alerts to join teamssearching for lost aircraft. Gene Ashley

is one of the Civil Air Patrol (CAP)members who answers such calls.

A business systems analyst with StandardOil in Cleveland, Ashley is a colonel inCAP, the civilian arm of the United StatesAir Force, and is trained to fly with aircrews as an observer during searches.

The Air Force turns missing aircraftinformation over to CAP, which handlesall search and rescue missions for theservice, Ashley explains.

In addition to his air duties, Ashleyserves as inspector general of the OhioWing, the statewide level of theorganization.

Ashley is in his second "hitch" withCAP. As a teenager, he participated in

the organization's cadet program, whichprovides students aged 13 to 18 withleadership training, and aerospace andflight education.

"When my son expressed an interestin attending the Air Force Academy, Isuggested he look into CAP;' says Ashley."That's how I got involved again."

The father-and-son interest soonattracted Ashley's wife. She started inthe cadet education program, and roseto her rank of major, responsible for theOhio Wing's cadet orientation flights.

"This isn't a pilot's organization, asmany people think," says Ashley. "Onlyone in five members is part of an air crew.

"A lot of people are needed for groundsearch crews, radio communications,and other duties. There are many wayspeople can get involved."

Nolan Sherrick labors to finish craft shop before winter's onslaught.

Cabin fever strikes Lima employee

IDC:JIOJ.~cOJo};oo.c___~ -,CL

property near Lima.The shop will be made out of logs

from a barn and house built in the mid­1800's. Nolan "discovered" and purchasedthe antique structures, then dismantledand moved them for reassembly on hisproperty.

The shop will include a wooden spiralstaircase, and will feature "corn husk" andother colonial crafts for sale, Marty says.

Last fall, Lima (Ohio) Refineryemployee Nolan V. Sherrick began

a project that is taking him back in time... back to the 1800's, when logs were oneof the chief building materials.

"My wife always wanted a log cabin.And she always wanted a craft shop," saysSherrick. head pumper at the refinery.

Martha "Marty" Sherrick is gettingboth, thanks to Nolan, who is assemblinga log cabin craft shop on the couple's

~'A 11 my life I wanted to paint, but..t\.. never received much encour­

agement," says Faye A. Hallat Standard Oil Production

Company in Dallas.All that changed since

Hall, a project manage­ment administrator,passed the National

Society of Tole andDecorative Painters'

test that certifies her as adecorative artist."Tole" was originally defined

as tin or metal-ware decoratedby painting. Over the years, "tole

painting" has come to mean deco­rative painting on a variety of surfaces,including wood and porcelain.Thanks to a friend who knew ofher work, Hall was asked to teach

four tole painting classes in Calgary,Alberta, Oct. 23-25.

Canadians invite painter to teach

>­OJQi<J)

o2:;~~...---.

8'.>­

.Do:g Faye Hall: "My husband cal1ed me Grandma Moses at first .. :'CL'-- --J

6 Standard Oil Now' November/December

sope's Johnson: Tax credit could spur oil huntAs the United States' oil industry strugglesto regain its footing since last fall's nose­dive in oil prices, William 1. Johnson,president, Standard Oil ProductionCompany (SOPC), warns that seriousproblems may still loom ahead.

If oil prices force U. S. companies tocontinue their near moratorium onexploration, "America will gradually beginto run out ofreserves and/oreign oil importswill again have this nation in a vise grip, "he says.

How to prevent the problem? Johnson'ssuggestions follow - excerpted ji'om arecent edition 0/ SOPC's employeepublication, Communicator.

The United States' oil industrycontinues to reel from the free-fallin oil prices that began in late

1985. Since then, oil prices have fallenmore than 50 percent.

The negative results are readilyapparent:

• Capital and exploration budgets bymajor oil companies and independentshave been slashed.

• Drilling activity in the U.S. hasplummeted to the lowest level sincerecord keeping began.

• Most companies have been forced tocut valuable, talented manpower.

• Industry interest in offshore leasesales has waned, and bonuses paid to theFederal government have decreasedsignificantly.

• Revenues to Federal and stategovernments from lease rental and royaltypayments and severance taxes have beenreduced significantly.

• Fewer rigs at work mean fewer leasesdrilled on the Outer Continental Shelf

William J. Johnson

(OCS) as operators write-off leasesfor tax benefits instead of paying thehigh cost of drilling them.

Especially hard hit have been the high­cost, high-potential frontier areas of theOCS and Alaska.

The stakes are high, but so are therewards. By the year 2000, much of thisnation's oil and gas production must comefrom fields that haven't yet been dis­covered. The offshore oil search ismoving farther from shore; estimatesindicate that at least two-thirds ofAmerica's undiscovered oil and half theundiscovered natural gas are likely to befound offshore on the OCS.

Exploration and development in areassuch as the Arctic and in deep waters ofthe U.S. OCS devour capital. Develop­ment can take years.

Now we are seeing major projectsdelayed or cancelled until oil pricesstabilize at a level where the industry

can plan for the future.As more leases are left undrilled and

undeveloped, there will be a precipitousdrop in future new reserves andproduction.

From a broader perspective, the nation'ssecurity is at risk. if this dangerous trendcontinues, America will gradually beginto run out of reserves and foreign oilimports will again have this nation ina vise grip.

What can be done'?Some maintain an import fee should be

imposed on foreign oil, which wouldserve as an incentive for domesticoperators to drill and also help reducethe ballooning Federal deficit. But there'sno guarantee that the deficit would notcontinue to grow or that the industrywould reinvest the added revenue.Moreover, such a tax would not be in thebest interests of consumers.

An import fee on foreign oil would onlyartificially prop up domestic prices. Theworld oil price would not change. Energy­intensive U.S. industries would sufferfurther disadvantage relative to theirforeign comp~tition.

SOPC is proposing that Congress enacttax incentives for exploration and newproduction in Arctic and frontier/deepwater areas. A bill to that effect hasbeen submitted in the House of Repre­sentatives, entitled the "Hostile AreasExploration incentives Act of 1986"(H. R. 5437).

The tax incentives would apply to thecosts of doing geological and geophysicalwork, drilling, and all casing and equip­ment and other costs necessary to drilland test an exploration well.

Our exploration proposal calls for atax credit of up to 15 percent for explora-

tion conducted north of the 49th paralleland in OCS waters 600 feet or greater.(Prudhoe Bay Field is north of the70th paralleL) For deepwater domesticexploration, the credit would beadjusted incrementally, based on waterdepth.

This is a sensible way to encourageinvestment in deepwater areas that havethe potential for significant newdiscoveries, but with long lead times toproduction.

The credit proposal carries with it anincremental phase-out provision, adjustedfor inflation, if the price of oil exceeds522 per barrel. Once oil reaches $30 abarrel, the credit would be eliminated.For new production, SOPe's proposalcalls for a credit of 55 per barrel of oilequivalent, also adjusted for water depth.

As with the exploration credit phase-out,the production credit would be phasedout incrementally if the oil price exceeds522 per barrel. After prices reach 530 perbarrel, the credit would be eliminated.

Such incentives would encourage invest­ment in high-cost, high-potential areasthat, otherwise, would likely see littleor no spending by industry because ofcurrent, depressed oil prices.

By encouraging exploration andproduction, tax credits stand to increaserevenues to the Federal government fromlease bonuses, rentals, and royalties. Forour company and others, it could helpreduce Federal corporate income taxes,yielding additional available capital forprojects and programs which can generatenew jobs.

Unlike a quick-fix import fee, this is astatesmanlike approach that would notonly benefit the oil industry but thenation.

RETIREMENTS

• CorporateMary R. '\emec (.-\ug.ll.secretary, Technology.Employed 1982.

• Sohio Oil CompanyMarion T. Barford (J uly I),truck driver, BP Terminal.Baltimore. Employed 1954.James P. Dews (June I), truckdriver, BP Terminal,Washington. Employed 1973.Ralph R. Wakefield (July 1),tour engineer, Sohio Pipe LineCompany. Woodbury, N.J.Employed 1947.

In Retail Marketing, Marion W.Bowman (July I), mechanic,Columbus, Ohio. Employed 1948.Russell E. LaCroix (Sept. 1),car wash manager. Cincinnati.Employed 1945.John W. Mathis (Sept. I),mechanic. Toledo, Ohio.Employed 1949.Edward C. Miller (Sept. I).service station supervisor,Toledo, Ohio. Employed 1948.Daniel Roberts (July I),

self-serve station manager.Ck\eland. Emplo\ed 1960.

In Wholesale Marketing,Eugene Herner (Sept. I),truck driver, Lima, Ohio.Employed 1950.George W. Steward Jr. (Sept. 1),fireman, Paulsboro, N.J.Employed 1950.

At Alliance (Belle Chasse, La.)Refinery:William S. Smith (Aug. II.delivery operator. Employed1958.At Lima (Ohio) Refinery:Harold A. Best (Aug. 1),electrician. Employed 1949.William G. Christen (Aug. I),pipefitter. Employed 1951.Jack E. Davisson (Aug. I),head storekeeper. Employed 1951.Elza B. Hall (Aug. I), pipefitter.Employed 1949.Loyd B. Heitkamp (Aug. I).truck & tractor driver.Employed 1970.Paul J. McCluer (Sept. 1),instrument technician.Employed 1950.

Michael M. Miller (Aug. I),machinist. Employed 1950.James E. Mulcahy (Aug. I),instrument technician.Employed 1949.William A. Newcomer (Aug. I),instrument technician.Employed 1950.Robert E. Willet (Aug. Il.laboratory technician.Employed 1950.

At Marcus Hook (Pa.) Refinery:George N. Dilorio (Sept. 1),operator. Employed 1948.William C. Fuller (July 1),pumper. Employed 1972.Peter R. Giorgianni (Sept. 1).insulator. Employed 1943.Ira T. Graham (Aug. 1),

machinist. Employed 1948.George H. Gray (July 1),electrician. Employed 1945.Arthur A. Henderson (Sept. 1),instrument 1st class.Employed 1947.Nicholas D. Patrone (Sept. 1),operator. Employed 1948.Joseph V. Wolski (Aug. I),electrician. Employed 1951.

At Toledo (Ohio) Refinery:Harry A. Ranes (Oct. I J.general operator. Employed 1951.

• Standard Oil ProductionCompany

Alberto T. Aguilar (Sept. I),area inspector, Houston.Employed 1979.Kenneth G. Bell (Sept. I),technician, Prudhoe Bay,Alaska. Employed 1977.Bernice M. Crudden (Sept. I),technical assistant-Exploration,Dallas. Employed 1985.A. R. Ellis Jr. (Sept. I),staff geologist, Dallas.Employed 1984.Robert E. Fleming (Sept. I).senior geologist, Houston.Employed 1983.Harley T. Jones (Sept. 1),technician, Prudhoe Bay,Alaska. Employed 1980.A. E. Kauffman (Sept. I), staffgeologist, Dallas. Employed 1984.Bette L. Meyer (Sept. I),administrative assistant,Anchorage, Alaska. Employed1977.

Bill M. Moore (Sept. I), stafflandman, Houston. Employed1980.Rodney E. Nelson (Sept. I),technician, Anchorage.Employed 1977.Robert D. Owens (Sept. I).drilling supervisor, Lafayette,La. Employed 1984.Delores M. Troxell (Sept. I),inventory control coordinator,Houston. Employed 1983.Celesley Wilson (Sept. I),technician, Anchorage.Employed 1981.

• Old Ben Coal CompanyDavid P. Garascia (Aug. I).assistant to mine manager,Mine 21, Sesser, Ill. Employed1960.

• Standard Oil ChemicalCompany

At Lima, Ohio: Harry A.Burtchin (Aug. I), intermediatearea chief operator. Employed1955.

IN MEMORIAM

• EmployeesGary G. Binger, 40, Toledo(Ohio) Refinery. Employed 1971.Willie J. Rucker, 46, HomeOffice Mail Room.Employed 1963.

• RetireesRobert J. Adair, 71 , Sohio PipeLine Company, Woodbury, N.J.Retired 1979.Ralph I. Bail, 71, Marcus Hook(Pa.) Refinery. Retired 1971.Howard D. Burnett, 69,Sohio Oil/Gibbs Oil, Peabody,Mass. Retired 1981.David N. Campbell, 80, BPPhiladelphia Region.Retired 1970.

Lucille V. Dodd, 70, Old BenCoal Company, Oakland City,Ind. Retired 1978.Verla M. Drake, 88, Old BenCoal Company, Benton, III.Retired 1962.Alton O. Everhart, 64, SohioOil Company, Dayton (Ohio)Division. Retired 1981.R. Charles Forwood, 81,Marcus Hook (Pa.) Refinery.Retired 1970.Cecil W. Fowler, 81, SohioPetroleum Company, Midland,Tex. Retired 1969.Raymond P. Frey, 86, Toledo(Ohio) Refinery. Retired 1965.John F. Gloeggler, 79, BPMarketing, Oceanside, N. Y.Retired 1970.

John C. Harrison, 79, BPMarketing, Willow Grove, Pa.Retired 1970.Harold O. Heilner, 81,Marketing, Toledo/Lima/Mansfield (Ohio) Region.Retired 1964.George A. Keegan, 78,Home Office ManagementSystems. Retired 1972.

Michael Kropinak, 83, No. IRefinery, Cleveland.Retired 1966.Cyril A. Lowe Jr., 74. BPMarketing, Fort Lauderdale.Fla. Retired 1970.William J. Lubold, 77. PortArthur (Tex.) Refinery.Retired 1971.

Agnes M. Masek, 83, No.2Refinery, Cleveland.Retired 1960.Kermit L. McMahan, 76, BPO~I Distribution, Greensboro,N.C. Retired 1972.John H. Miner, 65, CorporateHuman Resources, Cleveland.Retired 1976.Edward C. Morrell, 70,Marcus Hook (Pa.) Refinery.Retired 1976.Kenneth G. Osterbrock, 60,Wholesale Marketing &Distribution, CincinnatiDivision. Retired 1984.Lucille E. Perry, 75, HomeOffice Supply & Distribution.Retired 1973.

Louis Phillips, 74, BPTerminal, Paulsboro, N.J.Retired 1977.Margaret L. Reid, 86, Old BenCoal Company, Benton, III.Retired 1965.Angela L. Schwartz, 73,Home Office Marketing.Retired 1975.Bruce Veith, 77, Sohio PipeLine Company, Woodbury, N.J.Retired 1979.Dennis A. Walters, 80, BP Oil,Atlanta. Retired 1970.Clarence K. Wingard, 75,Sohio Oil Company, BPTerminals, Mundy's Corner, Pa.Retired 1974.

Standard Oil Now' November/December 7

ReviewPLUS to keepmedical costs in check

Medical costs may rise 12-13 percent next year.

Continued from page 1.program, McAuliffe says.

Standard Oil employees covered byReviewPLUS are Corporate Staff, SohioOil Company (except for some areas ofRetail Marketing, which has its ownplan), Standard Oil Chemical Company,Standard Oil Production Company,several groups within Standard Oilindustrial and manufacturing groups,and approximately 2,500 retirees.

What to do?To initiate ReviewPLUS action, eitheryou, your covered family member, oryour designate must contact ReviewPLUSthrough its toll free number:

• Ten days before an elective hospitaladmission.

• By the second day after an emergencyadmission.

• Or, the first day after admission fordelivery of a baby.

When ReviewPLUS is notified, itsdoctors and nurses contact the admittingphysician to review treatment andhospitalization costs.

If anything seems out of line,ReviewPLUS notifies you and tries toresolve the issue.

"In most cases, ReviewPLUS doctorsand your doctor can reach agreement onthe length of your hospital stay," explainsThomas G. Emerick, manager, InsurancePlans, also in Cleveland.

"ReviewPLUS may advise that yourtreatment be handled through outpatientservices. It may even recommend analternative course of treatment thatyour doctor didn't consider, or didn'tknow about," Emerick says.

In this way, proper care of the patientis maintained and neither you nor the

company is surprised by the size ofmedical bills when they come due, saysMcAuliffe.

"ReviewPLUS is really an advocatefor you and the company. It helpsemployees and retirees with the uncom­fortable task of discussing treatment andcosts with the doctor and the hospital,"says Emerick.

If you choose not to abide byReviewPLUS regulations, portions ofyour hospitalization may not be covered.

For instance, if you do not callReviewPLUS when you should, an extra5200 deductible per hospital stay isassessed.

There are also financial penalties if:• Your admission is not certified.• You are admitted to a hospital when

outpatient facilities should have beenused.

• You are required to get a secondopinion and fail to do so.

Under those circumstances, Emerickexplains, only 50 percent of the cost ofservices deemed unnecessary will becovered by the plan, up to a maximumexpense to the patient of 52,000.

Cost spiral continues"Our company's medical plan rates haverisen steadily over the past five or sixyears. It is our most expensiveemployee benefit," McAuliffe says."One component of this rise has beenunnecessary hospitalization.

"While inflation in the United Statesappears to have slowed, medical inflationcontinues to rise. It is now about 10percent a year. Projections for the next12 months show a 12-to-13-percentinflation rate.

"Obviously, there is a need for cost

containment. "Emerick, who has studied the

spiraling health-cost phenomenon inthe U.S, for more than four years,agrees.

People have been rei uctant to challengehealth-care specialists about costs forseveral reasons, McAuliffe and Emerickexplain.

"I think the main reason why peoplehave been disinterested is an economicone. As long as their insurance companypaid the bills, they weren't financiallyinvolved," says McAuliffe.

"The patient should remember that heor she pays in the long run, regardlessof insurance coverage. High medicalcosts eventually get passed along toconsumers and their employers through

increases in health plan rates," he adds.And health-care plans like ReviewPLUS

are growing."Many of our major oil company

competitors have pre-certificationprograms. Some experts predict thatwithin five years all hospitalizationprograms will have some kind of pre­certification program attached to them,"says Emerick.

Conseq uently, most attending physiciansare not alienated by such outside reviews.Many doctors even initiate the process toinsure their own payment, he adds.

ReviewPLUS was chosen as the pre­certification agency, McAuliffe says,because it specializes in medical proced ureand cost reviews. It also retains a high­quality medical staff.

Here's what you thinkabout our 'new look'

Coordination Group gotconsistently high' marks.

Other popular featureswere the "On The Move,""Retirements," and "InMemoriam" departments.

• 95 percent liked thenewspaper's new look; 3percent felt it "neededimprovement" in areassuch as type size and colorchoice.

"I don't care for all thecolor, and I don't like thetype style used in the titleStandard Oil Now, "onereader wrote.

Many respondents suggested articlesfor future issues.

"I would like to see more about thevarious company operations; how theyfunction," wrote one reader.

Respondents expressed a similarinterest in knowing more about otheremployees' jobs. Many would like to seeextra emphasis on retirees and theirroles in the community.

Readers also wanted inside informationon management's long-range plans forStandard Oil. They wanted to know howthe company positions itself to weathertough times in the oil industry.

Finally, almost all of the respondents­about half of whom were retirees - saidStandard Oil Now helps keep theminformed about the company.

If you missed the survey the firsttime around, or want to send additionalsuggestions, address your comments to:Editor, Standard Oil Now200 Public Square 35-JCleveland, Ohio 44114-2375.

Horton Charts new courseBy Colleen Walsh

When the firstissue of StandardOil Now rolled off

the presses in June, weasked readers to teU us howthey liked the redesigned,bimonthly publication.

We included a surveycard in each copy of thenewspaper, asked readers'opinions on the newformat, and solicitedstory ideas to make thepublication more respon­sive to employee andretiree needs.

As promised: a summary of the results.About 500 readers responded.

"The graphics were excellent - thepaper was well-edited and breezy... thefirst issue will be hard to beat." onereader wrote.

• 96 percent liked the more news­oriented editorial content of the paper,and rated the publication "good" to"excellent.'·

"I enjoyed all the articles ...you alwaysseem to cover the good and interestingissues. so keep on the same course,"wrote a retiree.

Those who felt the newspaper "neededimprovement" often cited too manyreferences to Cleveland -based activitiesand employees.

"We want to be a nationally recognizedcorporation, yet most articles still

• revolve around local and regional issues,"wrote one survey respondent.

• 92 percent read "all or most" of thepublication. The in-depth interview withChairman Robert B. Horton and profileon Standard Oil's China Business

Sohio mascotMeet Patsy, the "Sohio Dog,"who first appeared in the July1929 edition of the company..magazine" The Sohioan.Patsy, t,h,~ former Sahio

, Motor Oil mascot, was re'­portedIy- fond -of hitchin,grides-on tank truck~ as theymade their deliveries. Sheapparently' found the motoroil rather "fetching~'...

..-oa;I

Standard Oil Now· November/December 8