To All Sunoco Chemicals Customers:

On Tuesday, September 28, 1999, Charles K. Valutas, vice president of Sunoco Chemicals met along with representatives of the Chemical Manufacturers Association (CMA), Pennsylvania Chemical Industry Council (PCIC) and other chemical companies, with a delegation of Pennsylvania Congressmen and staff. Held in Washington, D.C., the meeting addressed key issues surrounding rail competition and performance in the Northeast corridor and their effect on our industry. The recent service issues resulting from the breakup of Conrail into Norfolk-Southern and CSX were highlighted.

At a second meeting with railroad subcommittee senior staff, these issues were further addressed to Bud Schuster (R-PA), chairman of the House Committee on Transportation and Infrastructure.

Mr. Valutas, in his comments, discussed the poor performance of the railroads since the breakup and its economic hardship on Sunoco Chemicals and its customers, the requirement for performance standards as part of a competitive environment, and the long-range benefits to our industry, region, and the railroads that growth provides. Without competitive, highly service oriented rail carriers, such growth will be limited.

Jack Drosdick, chief operating officer of Sunoco, Inc., has also addressed the Norfolk Southern service issues with David Goode, chairman of Norfolk Southern. Jack’s message was that service provided since the Conrail breakup was totally unacceptable and must be improved immediately. He requested additional resources be deployed, specifically on Sunoco's behalf, to improve service to our customers.

You, our customer, can be assured that Sunoco Chemicals is doing everything in its power to make these issues prominent among key policy makers in an effort to provide the highest levels of service and supply of petrochemicals to your plant.

What can you do? Send a FAX, e-mail, or call your congressman to register your viewpoint. Make your congressman aware of the serious nature of current rail service failures and their effect on your facility and business. Support increased competition and performance standards as a way to improve rail service.

Enclosed is a summary of the CMA issue brief describing current industry legislative initiatives that benefit rail service and competition if enacted. If you would like more information, contact the CMA at (800) 262-8200 or (703) 741-5000. For Sunoco specific data, contact myself at (215) 977-6763, gordon_r_heisler@sunoil.com or your normal Sunoco Chemicals sales representative.

Sincerely,


Gordon R. Heisler
Manager, Transportation Operations
Sunoco Chemicals