45 



STATEMENT OF DAVID L. ROETS, SOUTHEAST REGIONAL 

 SALES MANAGER, GRASEBY STI, WALDRON, ARKANSAS; AL 

 KNAPP, THE INDUSTRIAL COMPANY, STEAMBOAT SPRINGS, 

 COLORADO; AND SAMUEL A. MABRY, VICE PRESIDENT OF 

 GOVERNMENT AFFAIRS, HERCULES, INCORPORATED, WASH- 

 INGTON, DC 



Mr. RoETS. Thank you, sir. My name is David Roets. I am the 

 Southeast Regional Sales Manager for Graseby STI. Graseby STI 

 is an Arkansas based company. We manufacture continuous emis- 

 sions monitoring systems for the various industries which require 

 them. The largest industry which we serve or play a major role in 

 is the pulp and paper industry. We have a business relationship 

 with the Ketchikan Pulp Company and its parent company, Louisi- 

 ana Pacific Corporation. 



The pulp and paper industry represents 85 percent of our compa- 

 ny's income per year. With the down turn in the paper prices, it 

 has been a very difficult past few years for the paper industry. This 

 in turn has resulted in a reduced business flow for Graseby STI. 



Over the past three years, we turned our focus on the utility 

 market, which resulted in a lot of work with very little return on 

 investment. 



There are approximately seven major suppliers of CEMS in the 

 United States. This represents a variable of approximately $100 

 million a year industry which is very little known. With the delays 

 of the enhanced monitoring rules and other environmental regula- 

 tions, there is just not enough business left to keep these compa- 

 nies afloat. 



Every CEM which we sell makes a difference to our bottom line. 

 The effects of a paper mill closing down are felt not just by the di- 

 rect employees of that facility, but also by families all over the 

 United States. 



Recently, Graseby STI has been exploring the possibilities in the 

 Asian countries. What we discovered is that the rest of the world 

 is beginning to follow the environmental standards that were set 

 in the United States. This means that the environmental issues 

 which are put forth in situations such as the one presented before 

 you today can and will be stepping stones to the way future issues 

 of similar nature are addressed. 



The importance of continuing to improve on the control of our en- 

 vironment is vital to our future and therefore should be pursued. 

 Environmental regulations need to be implemented when nec- 

 essary. However, they do not have to be so strenuous on the facility 

 that it will cause them to virtually close down. 



The Ketchikan Pulp Company, to my company's knowledge, has 

 always been an environmentally aware company and has taken 

 measures to meet or exceed the environmental regulations govern- 

 ing their facility. I believe that the request for an extension of the 

 Tongass timber contract by KPC should be granted for the 15-year 

 period in order to allow them the financial resources necessary to 

 bring their mill up to the environmental standards which we as a 

 nation have set and continue to set. I further believe that in doing 

 so, our government will make a statement to the rest of the world 

 that they are willing to work with industry to meet the future envi- 

 ronmental goals. 



