Document 8Vm8G9eE0pvvnMoBrd5x0p9Bm

November Mr. Keith Kelly Manager of Purchasing . Power Systems ( Vestinghouse Electric Corporation Box 341 Bloomington, Indiana 47401 Dear Keith: ' Randy Graham and I enjoyed our visit with you. I am particularly pleased that I had the opportunity to meet you and to discuss in person the price increase for Aroclor (Inerteen). The prices of Inorteen 54201 CP and Aroclor 1232 will be increased $0.02 per pound effective 1 January 1971 (1 July 1971 in accordance with your contract). The new prices for tanhcsr shipments will be $0.18 per pound, freight allowed, for both products. As I stated at the time of our meeting, there are several factors Which lead Monsanto to this price Increase decision. Certain of the more highly chlorinated PCBs (polychlorinated biphenyls) have been found to persist in the enviroament, and may bo harmful to sensitive marine and bird species. Due to this PCB environmental pollution problem Monsanto has withdrawn certain Aroclors from non-electrical product applications where confinement and control of the PCBs are not possible. This has resulted in substantially lower volumes and increased product costs. We intend to continue to make these products available to the electrical industry for use in sealed capacitors and transformers. In doing so, the need to conform with requirements dictated by the PCB environmental problem has resulted in additional increases in manufacturing costs, toxicological testing expenses, and re search costs. Monsanto has historically had a responsible pricing policy on Aroclor. We will continue to operate under the same policy and have approached this price change as one which would provide Monsanto only the minimum necessary revenue required by the true increases in our cost of operation. DSW 018442 STLCOPCB4004986 November 30, 1970 Mr, Keith Kelly Manager of Purchasing Power Systems Westinghouco Electric Corporation Box 341 Bloomington, Indiana 47^01 . Bear Keith* Randy Orahan and I enjoyed our visit with you, I an particularly pleased that I had the opportunity to meet you and to discuss in person the price incroase for Aroclor (Inertcen). The prices of Inerteon 54201 CP and Aroclor 1232 will be increased $0.02 per pound effective 1 January 1971^ The new prices for tankcar shipments will be $0.18 per pound, freight allowed, for both products. As I stated at the time of our meeting, there- are several factors which lead Monsanto to this price increase decision. Certain of the more highly chlorinated PC3s (polychlorinated biphenylB) have been found to persist In the environment, and ruty be harmful to sensitive marine and bird species. Due to this PCB environmental pollution problem Monsanto has withdrawn certain Aroclors from non-electrical product applications where confinement and control of the FCBs ore not possible, Thi3 has resulted in substantially lower volumes and increased product costs. Wo intend to continue to make these products available to the electrical industry for use in sealed capacitors and transformers. In doing so, the need to conform with requirements dictated by the PCD environmental problem has resulted in additional increases in manufacturing costs, toxicological testing expenses, and re search costs. Monsanto has historically had a responsible pricing policy on Aroclor. We vrill continue to operate under the same policy and have approached this price change as one which would provide Monsanto only tho minimum necessary revenue required by the true increases in our cost of operation. SW 018443 STLCOPCB4004987 Mr. Keith Kelly 2- November 30, 1970 Keith, I was quite impressed with your plant operations and the work that has boon done to assure proper handling of theso products. I will be back in touch v/ith you shortly concerning the modification to the contract v/e diocusood. Very truly yours, Ase \ cc* 0. R. Graham P. G. Benignus H. S. Bergen T. L. Gossage Director of Sales Functional Fluids OSW 018444 STLCOPCB4004988