Document 8VrQnkNy1J35QKVpJzqvedRGd

FEB.17 13:4S GENERAL TIRE AKRON - CHEN HQ DiversiTech Oenerai Obcomp company June 14, 1905 P.02 Hr. Ronald Bomack, President VYGEN Corporation P, 0, Box 6$ Ashtabula, OB 44004 c/o Barry J. Pinto, Jr., Esquire Lucid, Jaiiour, Pinto S Rodgers 73 Washington Street Morristown, NJ 07960 Re; Sale of Ashtabula Facility - Environmental Disclosure Dear Hr, Bornack: This letter is written in contemplation of the sale by DiversiTech General, Inc. (`DiversiTech*), to VYGEN Corporation ("VYGEN'), of DiversiTech's polyvinyl chloride ("PVC*) resin facility located at Ashtabula, Ohio and in confirmation of various environmental circumstances at the facility. Numerous environmental statutes and regulations are applicable to the operation of Such a facility, and although the Incorporators, owners, officers and directors of VYGEN are thoroughly familiar with the environmental compliance aspects of the operation of a PVC manufacturing facility, and notwithstanding the fact that representatives of VYGEN have inspected the facility on several occasions, DiversiTech believes it is appropriate to formally disclose the following Items of information concerning certain environmental aspects of the facility so that all concerned may be fully informed prior to execution of the contemplated definitive sale agreement. For convenience, some areas of concern which have previously been brought to your attention are itemized under thre reference headings below. AIR 1, The operation of the plant requires two incinerators, one as a back~up to insure continuous operation. The scrubber on the north incinerator failed and has been replaced. This unit must be tested and functional for the plant to be continuously operational. One Genera' Street Akron, Ohio 44329 (216) 798-0132 GENC 26167 FEB.IT '86 13:47 GENERAL TIRE AKRON - CHEN HQ P.03 Hr. Ronald Ho mack June 24, 19$5 Page Two 2. The plant has no current Ohio EPA operating permit for air emissions. This permit must be obtained for plant operations. Normally, a temporary permit is issued until the plant shows an operating period of compliance to warrant the issuance of a con tinuing permit. 3. U.S.E.P,A. has proposed revisions to the national emissions standards for vinyl chloride. If such revisions are adopted, an enchanced leak detection procedure and program will be regulred at the plant. 4. Under Section 112 of the Clean Air Act and regulations issued pursuant thereto, DiversiTech has entered Into administrative orders with Region V, U.S.B.P.A, as follows: EPA-S-81-A-39} EPA-5-82-A-6; EPA-5-S3-A; EPA-5-80-A-11; EPA-S-82~A(a)-7. DiversiTech believes that it has met the requirements of these orders and will provide copies of such orders at VYGEN's request, WATER 1. The plant has operated under hpu&o permit nq, SirooQQG FD, Dlverai Tech does not believe the plant capable, without modification, of meeting Residual Vinyl Chloride Honomer (RCVM) effluent emission standards proposed by either the U.S.B.P.A. or the Ohio EPA under proposed Permit Ho. 31E00006 GD, Requirements applicable to trans fer of NppES Permit No. 31F00006 PD are set forth In paragraph 19 of the attached Exhibit A. Notification has been sent to the Ohio EPA of transfer of ownership (copy attached). A joint meeting was held with representatives of DiversiTech General, representatives of VYGEN and the Ohio EPA and a program has been proposed, subject to final issuance by the Ohio EPA, which contemplates issuance of a temporary permit and a program to improve the compliance of the plant over approximately a 20-month period. 2. Other considerations under proposed Permit No. 31F00006 GD may concern lead testing and monitoring of rain overflow, SOLID WASTE 1. It was reported to a member of GenCorp*s Law Department on June 12, 1988 by Assistant U.S. Attorney Richard Lillie of the Northern District of Ohio, that the criminal investigation concerning Improper clean-up of the Olln site has been completed and that no criminal charges concerning the site will be forthcoming. QENC 28188 FEB.17 '36 13:47 GENERAL TIRE AKRON - CHEM HQ Mr. Ronald Rornack June 14, 1985 Page Three P.04 5. Fields Brook is a stream which flows through the property on which the plant is located. It has been listed on the Rational Priorities List as a Superfund site, and DiversiTech has received notice from U.S.E.P.A. regarding its potential involvement. It is the believe of DiversiTech General that no significant environmental damage to this site resulted from its operation of the Ashtabula facility. Under an Agreement between DiversiTech General and VYGER Corporation, DiversiTech has agreed to indemnify VYGEN, subject to the limitations of such Agreement, for losses VYGER may incur resulting from Diversi Tech' s ownership and operation of its Ashtabula facility, Sincerely, RS/ljr Attachment Howard S, wheeler Vice President GENC 26189