Document JrV21vJw4YxG8aD2ep0YKZbvB

FILE NAME: Asbestos Information Association (AIA) DATE: DOC#: / DOCUMENT DESCRIPTION:Board of Directors Meeting Minutes with List of Attendees LA\\ .J 1 ASBESTOS INFORMATION ASSOCIATION NORTH ,u.AEFi~.A CN,i. . . . . . ... . . - ,... ....ve,m, = 1835 K Slreel. NW., Washington. DC 20006 (202) 2234885 BOARD OF DIRECTORS MEETING December 9, 1976 Mayflower Hotel Washington, D. C. Pursuant to notice, a meeting of the Board of Directors was held December 9, 1976, in the Hayflower Hotel, Washington, D. C. The :r.ieeting_ was called to order at 9:03 A.H. Thefollowing Directors were present: Harry Babilon (for William C. Clark) George Barge W. H. Beasley John H. Chidester - ./Thomas A_- Douif{erty Dennis E. Eldred Willic1Ill Fassuliotis E. H. Feierabend JQul G. Gabrielson,~r. Clarence A. Herbst, Sr. John W. Hollingsworth v<John H. Harsh James J. McHugh (for George Vogel) Joseph T. Mooney James J. O'Dowd . (for J. M. Ciskowski) Robert B. Pilmer Dimitry Poutiatine -H.B. Rhodes, Ph.D. (for W. C. Thurber) John Riope.lle Kurt Schwarz E. R. Zacharias As ten-Hill Limited .i Atlas Asbestos Co. cement Asbestos Procuctsco. Brunswick Fabricators, Inc. ,/Certain-teed Corp. Vermont Asbestos Group V.GAF Corporation ~bex Corpo:ation v'Nicolet, Inc. Resinoid Engineering Corp. Dresser Indust~ies (Magcobar Div.} Raybestos-Manhattan, Inc. National Assn. of Filter Mfg:s., Ir ~onseyProduc~s Co. Jim Walter Reseatch Corp. Garlock of Canada, Ltd. Johns-~an,,ille Corp. - Union Carbide Corp. The Beadix Corporation Supradurr-tanufacturing Co:p. Molded Hate rials Co. Also present: B. J. Iwarsson, Abex Corp.; Alfred E. Netter, Suprcidur Manufacturing Corp.; i7illiam H. Vockroth, Monsey Product~ co.; R. H. Mereness, Executive Director, AIA/NA; Adrian Hay, Esq., W~ndell B. Alcorn, Jr., Esq. , Thomas O'Connell, Esq., Cadwalader, Wickersham s Taft; Richard T. Davi5, CP~, Frank C. Frantz fi Co.; and B. J. Pigg, Adqiinis::.rutive 1'.ssistant, i\I.":\./~iA. JH tv\ 15 96 7 ,. I Page 2 Introduction Mr. Dougl:-.erty welcomed att-:?ndees and acknowledged new directors and other p~rsons representing member com?anies in the absence of d~signated re~resentatives. He said Mr. Feierabend of Abex Corporation had advised of his promotion within his company and change of address necessitated his withdrawal frora the Board. His replacament as Abex representative in the Association will be advised. Hr. Dougherty thanked Hr. Feiera.bend for his'. interest and support of the Association in his capacities as director and Executive Committee member. It was announced that Hu:<ley Development Corp. had joined the Association. Mr. Adam Novak will be the firm's representative in the Association. Minutes On motion, minutes of the preceding. meeting, September 8, 1976 were approved as submitted. Financial Report Hr. Barge re,,iewed the financial report for the elevenmonth fiscal period ending November 30,1976. He invited attention to the t:1O major expenditures during Nover:tber of $12,143 and $8,920 for work in connection with the Association's construction industry study and legal-medical research program respective~y .. Mr. Barge said, on ~n acc=ual basis, he estimates that expendit~res and inco~e (includi~g receipts from recent special assessment (18t) of membership dues} for 1976 would appro:dmate the same total, i.e., $369,000 income vs. $371,000 expenditures. Total income from the special assessment is expected tobe $49,100. Hr. Barqe itated that he expected the.Association's net worth beginning balance for 1976 of $57,000 would be essentiallythe same for 1977 after all obligations in 1976 are paid. As of Nov. 30, 1976 the Association had total assets of $136,486; li~bilities of $39,134; and a net worth of $97~352. On motion, the financial. report was accepted as submitted. International Asbestos Information Confer~nce (IAIC) Hamburq, ~-1. Germany, Nov. 3-5, 1976 Mr. Marsh said he would speak to international events of the past 12 year5 which pertain to the asbastos industry, the e5tablishrnent of the Inte~national Asbestos Inforr.1ation Standing Coramittee, the recommended work pr.ogrnm of the Committee, the means for achieving this work, and the actions taken at the International Asb~stos Information Conference in Hamburg, Nov. J-5, 1976. Ile refe"rred to a number of international meetings beqinning in 1964 dealing with the biological effects vf asbestos. He- said there had been verJ little if an1U.S. industry re~rcsentativ~s at some of the early meetings but U.S. industry interest beg~n to chai:ge commencing with a meeting in Lyon, France in 1972 :.JVtt971\, ~ollow1.ng forrnution of Aii\/N,\. He stu.tcd at a meeting in Paris ~ttended by himself and the E>:ecutive Director, 1\I/\/NA, it . - - --- J HM .15 9&8 .' Pnge 3 was agreed thut a continuing int:.ernational body representing - the industry should be established. An Ad Hoc working group 1 was formed to study the matter and, upon its recommendations, a Standing Committee of International Conference of ~sbestos Associations was established on July 9, 1975 with AIA/NA being a charter member, representing the U.S. Hr. Marsh then read excerpqs from a report of the Standing Committee's activities in 197~ and 1976 and outlined future work of the Committee as presented at the Hamburg meeting. (Note: A report of the Har.Iburg m9eting, including the foregoing report, was forwarded to members by AIA/NA Memo. of 11/24/76.) Hr. Marsh re,riewed actions taken at the -Haro.burg meeting affecting the newly defined International Asbestos Information Conference and distributed a pertinent report. (Copy attache~ for directors not present at meeting.) He ~poke of adyant~ges to the indust~y that stem from the international organization and emohasized the "indivisibility of the industry problem," i.e., advers~ situations occurring in one country in~ariably impact on other countries . A discussion followed and Hr. Harsh- - provided further assessment of the work and importance of the international body. Mr. Dougherty-expressed appreciation.'to Mr. Marsh for his excellent report and thanked him for hi.is representation of AIA/NA in the deliberations of the international group. At the Hamburg Conference Hr. Marsh was designate'd a mef!'ber of the IAIC Executive. Corranittee. _ .. . . ...... . Assoc'i7ation Captive =Insurance Co. Hr. Gabrielson invited attention to his letter to Directors dated November 12 which addressed the concept of an AIA/NA captive insurance company. He spoke to probleMs confronting the industry -in regard to cancellation of product liability insurance coverage, increases in product liability insurance premiums and higher deductable features. He explained that there is reason to-belieye that some custorr.ers of Association members view the product liabilit1 problem as an indication that an impartial judge, i.e.,'the insurance companies, has come to the conclusion that asbestos is a more hazardous material than industry has told them. Unavailability of such insurance. could also accelerate the search.for substitute materials. Mr. Gabrielson said the Executive Committee had concluded that it might be desirable to contract for a feasibility study I to further e,-:plore the concept of AIA/NA incorporating its own I captive insurance company. He outlined the concept st~ting that I ~e was not an expert in insurance matters and suqgested the following I questions for resolution by the Board: (1) would the Directors be - I I interested in a captive insurance company for purpose~ of obtainin; I I their respective company product liability in5urance? (2) do directo=s I thir:1k that creation of an AIA/NA captive insurc1ncc company would b:J iI omfatienrtiearles,stantod tthheerierbycubsetowoferass, sissltonwr:cthee inzetahrcehmfaorrkect1plltaecren?ativHee stat~d that the Executive Committee had reco::::;::::ended that the : ..,-~.,,Association retain a consultant to conduct a study covering the '1 C.., I -- I ........ _ . - . -- - - --- ----- J H /v\ 15 9 6 9 feasibility and cost of establishing a captive insurance prograra. ' A lengthy discussion followed. A motion was wade to authorize Mr. Gabrielson to act as agent for the Association and engage the services of a consultant to study the feasibility and cost of establishing a captive insurance progra~. Cost of the sttjdy not to exceed $11,200 was approved by majority vote. Mr. Dougherty said every effort will be made to have the study completed in time for consideration at the March 1977 Directors maeting. He proposed the establishment of an insurance committee for liaison with the consultant during conduct of the study. :-tembers having individuals in their respective companies with insur.:ince expertise were requested to su;.,mit such narr.~s to the Executive Director at the earliest.practicable date. Mr. Poutiatine said that J-M's manager of insurance, Halter Curtner, was availabe to assist the Association on this project. Work in Connection with OSHA Asbestos Stand~rds Mr. Gabrielson; Chairman, Asbestos Regulation Task Force, said there had been no change in status of OSHA's proposed revision to the asbestos (manufacturinq) standard. The Inflationa~y Im?ac~ State~ent (IIS) prepared by CO~S~D Research Corp. has not yet been certified by the Department of Labor. He explained that,'whila no official word has been received, the delay'.in certificetion continues to m.:i:ee i t more likely that the Association Is p::::-inar~ reco~~endation of combining the public hearing for proposed asbestos manufacturing and construction standarcs will be affected. Mr. Gabrielson reviewed the background and subsequent approval by Directors of a technological feasibility and econocic impact study for an asbestos standard forthe const=uction industry now being conducted for th2 Association by Equitable Environmental Health, Inc. (EEH). Cost of total study (th~ee phases) is estimated to be $150,000. Phase I (review of 1data sources) has been completed~ however, it developed that there was not as much date:?. in published literature as was expected. Some of the shortfall of data will be obtained in Phase II through field interviews. He referred to two disappointments experienced in Phase I of the study. Limited succcssin obtaining basic data from construction contractors was experienced. In an effort to acquire this type of information, Mr. Gabrielzon called a ttcrntion to an EEH p:i;:-epan?d survey questionnaire (copy attach~d) and requested members who sell asbestos-containing products to the construction industry to assist EEH. He suggested th~t persons in marketing might make contact with contractor cu5tomers by telephone to solicit the information r~questcc by the questionnaire. Mr. Beasley suggested that EEH consider advising companies by letter in advance of telc9hone inquiries. Such letter could provide identification of orospective caller and afford the co~pany being contact~d 'an oonortunity to coll~ct t~c req~ested informntion in advance of a tei~phorie c~ll. cl1.scu~51.on of the que!.tionnaire followed. Mr: <;abriclsn" A M .,: n.v i! l J H - -- .. ----- -- ----. --- --- - .... -- - 15 97 v .. '. Page 5 said the gatherinq of this data was important to the industry as the results could lend supeort to a recommendation for limitinq the applicability of an asbestos standard for the construction indust~y. When data is obtained from contractors it should be telephoned to EEH, (Dr. Philip Leclare (516) 3648500). 4 ~tr. <";abrielson then commented on cooperation recaived by EEH with the ma:i.ufacturing industry in gathering essenth1l infor~ation. He said a gap existed in data pertaining t~ the floorinq industrv. Mr. Gabrielson urged A.I.A/NA members in this seq~ent-of the industry to su;iply EEH with the requested data at the earliest possible date, othen,ise, the lack of data in this area will have an adverse impact on the total effort. Mr. Gabrielson said the Associatioi is deeply indebted to Dr. Rhodes, Union Carbide Coro. and co-chairman of the AIA/NA Ad Hoc Committee for Construction, for r.is selfless and tireless contribution to this com?le:< and demanding- project. (Dr. Rhodes also serves as chairman of the AIA/NA Standards & Technical Cammi ttee. ) J A general discussion followec. concerning problem areas and anticipated results of the EEH study. R~vision o{ Association By-Laws Mr. Dougherty reviewed the background for which the Executive Committee felt re~rision of Association Bv-Laws was in order. He r~ferred to consideration of this matter at tr.e June 10 and Seote~ber 8 Directors meetings. He said soMe administrati7e corrections are necessary, ambiquities exist, and Association membership is now restricten to:one class. A draft revision of. the the By-Laws was forwarded to Directors by AIA/NA Mamo c!ated l0/22/75. AIA/MA Memo of Nov. 15 advised that a vote on revision qf the By-Law~ would be taken at the Dec.9 meeting of directors. Followinq discussion, and on motion, the proposed revision to Association's By-Lc1~vs was unanimously approved, a quoru...--n of Directors being present. Leqal-Medical Research Proqram _ Mr. Gabrielson reminded Directors that the primary purpose o~ the Legal/Medical Research Proqram is to improve the quality of_def~nses for asbestos companies involved in third party liability s~its in tort. He exolained brieflv the soeciEic research work now ongoing in the legal area by Cai!..-1alac!e=-, Wickersham r.. Taft ,and Ph,lie Enterline, Ph :.9. , University of Pittsburgh, in review of medical literature. Wendell Alcorn, Esq., Cadwalader, Wickersham & Taft sp~cial c~unsel to the As~ociation was introduced. Mr. Alcorn revi~wed l:lo n . J his b~ck;roun<l and interest in asbestos-related litigation c~ses. ; , I.: i! s~id. that the asbestos industry hns served as a, ~u.;,nea pig ~ lvl15 9 71 l .. Page 6 of J\~erican jurispudcnce with resoect to occupational diseases. He spoke in detail to th~ liability problem confronting the industry.and the history of this ?roblem as it has evolved through the courts. Mr. Alcorn said he expected three or i:our additional memoranda of law prepared by hi~ office for members and associate ~embers of-the LegalHedical Research Committee would be available by Dec. 31. (Two rnemo::-anda have already been distributed.) Reference .-,as made to progress in cevelopinq a clearinq house of information on asbastos-related cases that have been litigated in the United St~tes to date. Mr. Alcorn soo-:<e to the interface of his work with- that of Dr. Enterline. The Executive Director invited attention to the list of members and associate \membe:::s on the AIA/~lA Leqal/Medical. Research Committee and suqgested that Association IT1embers who have not designated a committee member for.purposes of providing a contact with s~ecial counsel shou~d consider doing so by advising the Executive Director who would notify special counsel, in turn. In regard to Dr. Enterline's project, Mr. Gabrielson sai~ work on the bronchogenic caP-cer portion of the literature review is corn?lete ,.-,ith exception of about 20 <;erman papers now 9e;ndinq trnnslat:ion and re,riew. A larga segr.-.ent of the rnesot.he.J;io::"1a literatur'='.? r~view is also comolete. Mr. Gabrielson exolained that a decision to, include asbestosis in the literature .;eviEM had begn made to determin~'wh~n this disease was related to different.. products, industries or processes. In ad~ition, the decision has b~en made to include liter:iture review of other ty?es of cancer sometimes related to- asb~stos exc?osure, e. q. , laryngeal arid gastrointestinal. Mr. Gabrielson ~id Dr. Enterline h<? com?leted most bf the literatu~= review for the period 1933-1968 and that he estimates the total project is SO~ complete. The final roduct ,..,i]_l consist: o E ( 1) com?lete tile of all papers reviewad; (2) critical quotations from each paper; (3) card fil~ index with brief ~1..UtUttary of each paper;. and (4) a scholarly paper. D. J1r. Gab~ielsog said special counsel had corr:rnnced ~ _intervieJ,fS with va.;:iowa physrcians suggestea by or. Weil,L for ,./ l( rccogniz~d knowledge in asbestos-related disease who might qualify as expert witnesses in any injunctive proceedinq initiated bv the Association or in other litigation. It was suaqested l~hat two types of witnesses may be required in court cases in order that both condition of olaintiff and state of the medical art could be addressed. - 1977 Pro~osed Budqet Mr. Barge reviewed in detail the l\ssocia tion.' s proposed budget for fiscal (calendar) year 1977. He exolained that total dues i~come for 1977 should be $370,000 to support regular operating exp~nses plus special projects no~ approved and under- way or proposed. (Leqal-Medical Medical Research Program -- $25,000; EEH technological fec1sibility and economic imnnc-:t :~~ :~ \ l1 ~ l J HN\ ..15 97.2 . . . r Page 7 study -- $116,000; Captive Insurance Company Feasiblitv Study $11,200.) Membership and travel associated with the Int~rn.n.tional l'.sb~stos Inf.ormation Conference will approximate $13,000. The $370,000 figure represents an increase of about 14~ over tot~l dues (including the recent 18~ speci~l assessment) paid by members in 1976 which amounted to $323,000. , Mr. Barge-noted that the pro9osed budqet reflected identical totals for receipts and disbursements. He said he envisioned that the Association's current net cash reserve of about $57,000 would meet the needs of good business practices. Following discussion, and on motion, the Association's budget for 1977 as proposed, was approved. {Attachment} Mr. Dougherty proposed that the following dues forr.nrla for fiscal {calendar) 1977 be approved by Directors: l. Regular Members ,. a) Dues for users of raw asbestos fiber will be based on a millage rate of dollar value of asbestos fiber consumed (freight excluded) in 9revio~scalendar year with a minimum of $2,000 per anntL"!l. b). Dues for miners of asbestosfiber will be on a millage rat.e of dollar value asbestos fiber sold in North America.during previous calendar year with a minimum of $2,000 per annum. The millage rate will be one'~enth of the rate established for consumers of raw fiber. c) Dues for sellers of asbestos fiber will be $2,000per annum, the-minimum rate for all members. Millag7 rates ~ill be determined by the Association's ~ccountant following receipt of pertinent infer.nation from members obtained through use of a confidential questionnaire. 2. Associate Members Dues will be a flat rate of $500 per annum. . t,.; .~. ',1.~, l Section 2. 03 Associa.te 1-!~mb.;z-esltir, Qua7-i fir.c:t1:onG. Any firm or corporation uhich meetG the Qualifications set forth in Section 2.0L and is involved in a seconda~1 \ or consumer industry aa defined herein is e'ligib7-e for \an associate membership: \ A) Secondary Industries -- thosa industries t1tat continue the manufacturing process with an inter- mediata ~r~duc~ (one in ~hi.ch the fiber has pre~iou:;Li bee~ ~odt.fLed Ln_a primary industry~ and further proaccses, mod1,f1.e:; or fabr1.ca te:; to produce ei thar ';f F-{J;~r l Sg? \ f .3 ca ,. . intermediate product or a finsished product; BJ Consur.ier fr.dustries -- t:ltosa indtrntries that purchasa a finished usbe~tos-cont:~ining product and apply, install, erect or consume the asbe::;tos-containing product withot!t further physical modification of the product. (By-Laws) Following discussion and on motion, the dues formula as proposed by Hr. Dougherty were approved. Canadian Situation Mr. Pilmer referred to a recent determination by the Workr.1en' s Cor..pensation Board in Ontario relating asbestos with gastrointestinal cancer as a compensable disease. He sugqested that this ri.1ling might have a significant impact on wor!:men' s cor.tpensat:ion boards elsewhere in Canada and the U.S. Mr. Barge spoke to the recently published report.. of the Beaudry cot:Utlssion in Quebec. The three-member commissic::>p, headed by Judge Rene Beaudry,was named to study health conditions in the asbestos industry. The im?act that the report will h.i\re on, legislation i-3 not known. He said t:.us far no public statem.:::nt has been made bythe Government of Quebec as to its planned .. reaction to the Beaudry Report; however, the Report has been. used as a basis for extensive adverse reporting in the press regardinq th:: industry. Among- recommendations in the Report are :- (1) an averaqe permissible level of exposure t.o asbestos dust of 2fp/cc should be established, with certain qualifications pertaining to measurinq raathods, and (2) employ- ment in the asbestos industry be so ruled as to prohibit th3 hiring of peo?le who are tobacco users. Hr. Barge said the report concerns itself with ex:oosure to chrysotile and' the statement is made, "As far as crocidolita and amosite -- the committee is of the opinion that the use of these two types of fiber must be totally banned. No e~posur~ ~hould be toler~t~d for any worker." Mr. B.:l rge also spoke of the possible irnp.:v:t of recent elections in Quebec and concerns with "nationaliza~ion" of the asbestos industry. Remarks of the Executive Director In the interest of time, the Executive Director said he -would confine his remarks to a brief review of the asbestos situtation i-,ithin Federal regulatory agencies, excepting OSHA which was reported on by Mr. Gabrielson. In EPA, curr~nt emphasis is on implementation of the new Toxic Subst-'lnces Control J\ct. It is not eX9ectcd that: provisions of Act will affect asbestos in the immediate future. Em::,ha!3is \ ------ - .. -- --- ... - .... - - ....... --- ... -- -- ......... 'JHM 1597~ . . ... . . ... ,_ - Page 9 i~ <lirected to chemical substances~ EPA will make decision hv Decem!:Jer 1977 whether to pro9ose standards for control of "asbestostt eITTissions from taconite plants based on current onaoina studies. Revised National Drinking Water Regulations to establish treatment techniques or maximum contaminant levels are scheduled for issuance in May 1977. ; MESA' s Federal Metal and Nonmetal tIine Safety Advisory Coiill!littee has recommended change for current Sfp/ml to 2fp/ml with orobable effective date latel977. Since public advisory corouttee proceedings were "open", a public _hearing on this prooosal is not necessary or planned. The newly established Bureau of Mines Metalurgy Research Center, College Park, Maryland, involved with asbestos particle identification was discussed. This unit is providing material for_.-' the HEW-NISH ongoing four-year oral feeding study o.E animals to investiqate ingestion of asbestos fiber. It was reported that~ report on the petition filed with the Consumer Product Safety Commission (CPSC) by Natural Resju=ces De~ense Council, Inc. and the Consumer's Union of the U.S.A., Inc. for pronulqation of a rule banni~q certain as~estos-containing patching co~E)Cunds is now under review by the CPSC solicitor. AI:A/N;\ submitted comments to CPSC on the matters being investigated. Establishment of the new cateqory of associate membership in t~e Association_provides a means of greater effectiveness in -f:ul~illing the AsJocf'ation's objectives. Directors were en- couraged to make contacts within the industrf to advise of the Association's work, promoting membership in either regular or . associate catego.::-y, as appropriate. Upon being advised of possible membership interest, AIA/NA staff will provide follow- up cor.ununication. Other Business , The next regular meetinq 0 Directors is scheduled for !fa=ch 10, 1977, at Stouffer's National Center Hotel, Arlington, Virginia, commencing at 9:00 A. .M. Adjournment There being no further business the meeting was adjourned at 3:12 P.M. ..,)v.l/l)/4~ ...:--- R. _H. Mereness ' Executive Director (Secreta~y) Decen.ber 14, 1976 ~nc::losures P.!-!.M.: V JH 1v1 1597&