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6.H. - Page 12 of 27 <br />hment B — L <br />m SBR & Poten <br />Potential <br />Industries Inc <br />SBWMA, RethinkWaste <br />Facility Operations Contracts Manager <br />Mr. Hilary Gans <br />610 Elm Street, Suite #202 <br />San Carlos, CA 94070 <br />Re: High Grade Paper (HGP) sorted from MRFs <br />Dear Mr. Gans, <br />720 East "E" Street <br />Wilmington, CA 90744 <br />(310)549-5901 <br />February 13, 2019 <br />As you know, Potential Industries, Inc. (PII) has been exporting recovered <br />paper for over 40 years. In addition to our own MRF sorted paper, we also <br />market sorted paper from over 20 MRFs throughout the USA. <br />Based on our many years' experience, and using our best professional <br />judgment regarding paper sorted from single stream MRFs: (a) we have serious <br />concerns about the long term viability of traditional mixed paper, and (b) we <br />believe High Grade Paper will continue to not only be in demand, but also the <br />price for it will be significantly higher than traditional mixed paper. <br />In 2018 the price of High Grade Paper was approximately $75 per ton higher <br />than traditional mixed paper, and in our opinion that premium is likely to <br />continue. Although nobody in the industry can accurately predict future pricing, <br />we strongly encourage MRFs to upgrade their mixed paper to High Grade Paper <br />because this grade will continue be consumed by many paper mills. <br />Best Rd <br />s,n <br />7 <br />Daniel J. Domonoske <br />Executive Vice President <br />SBWMA BOD PACKET 02/28/2019 <br />AGENDA ITEM: 10B ATTACHMENT B — p1 <br />199 <br />