Document K2R5waXdNMeG28OQ719yDVOX

COMPANY D I A L: C OM M; REAL ESTATE ano C O N S T R U C T I O N OPERATION February 25, 1972 Messrs: A. M. Bueche M. Aven J. F-. Brown C. M. Huggins R. A. Koehler R. W. Roberts R Vf c^ rT",'~l-- KLc iV ED mar 1972 'SJC.HCENHEUCRTCAHDY RECEIVED FEB 29 'bu n w. S ^ H M i T T -r You may be interested in the enclosed report, which was prepared at the invitation of the White House Office of Science and Technology in support of the study being made by the government's Interagency Task Force on PCB's . This report is the first document issued by a GE Task Force on Continuation of PCB Use, which was established as a direct consequence of a meeting held on December 15, 1971 between corporate representatives of the Monsanto Company and the General Electric Company. At this meeting Monsanto announced that henceforth it would sell polychlorinated biphenyls (PCB's) only for closed-system electical applications (capacitors and transformers) and that such sales would be made only to customers who would agree to indemnify Monsanto against legal suits arising from leakage of PCB's into the environment during the manufacture and use of capacitors and transformers. GE has agreed to a new sales contract with Monsanto, the sole U.S. producer of PCB's. The GE corporate officers at the December 15 meeting (Messrs. Melci Peltosalo, Schlotterbeck, and Vanderslice) agreed that a task force should be formed to 1) prepare a public statement for the OST and 2) prepare an internal risk/benefit analysis of G E 1s role as a manufacturer of capacitors and transformers that contain PCB's. Item 1 is enclosed; item 2 is in preparation. The membership of the task force is given on the attached sheet. GENP 006034 ELS:1 (Enclosure) ' Dr. E. L. Simons, Manager Environmental Information Center 774683 TASK FORCE ON CONTINUATION OF PCB USE J. F. McAllister, Chairman Manager-Product Quality Corporate Executive Staff 570 Lexington Avenue New York, N.Y. R. J. Boudreau, Manager, Advance Development Laboratory Industrial and Power Capacitor Products Dept. Hudson Falls, N.Y. 0. H. LeBlanc, Manager, Dielectrics Unit Corporate Research and Development Schenectady, N.Y. J. S. Nelson, Consultant, Product Environmental Compatibility Product Quality Staff Schenectady, N.Y^ A. Pozefsky, Manager, Engineering Industrial & Power Capacitor Hudson Falls, N.Y. E. L. Raab, Manager, Dielectric Systems Insulation Systems Laboratory Operation Pittsfield, Mass. E. L. Simons, Manager, Environmental Information Center Environmental Protection Operation Schenectady, N.Y. GENP 006035 774684 r ' r:P F dr pte S. !..f, ? r L ASSIGNMENT OF TASK FORCE - BUSINESS POSTURE RE: sep i; * J. V-*ijUi;wri p ' T T C ' r 1'" ' * *' *v *'----- PYRANOL TRANSFORMERS The assignment of the Task Force is to - it - make a business risk assessment of the pyranol transformer product lines with respect to the environmental protection regulations; and - furnish the recommended business course of action to the General Manager, Transmission and Distribution Equipment Business Division Need for such a determination Is the substantial potential threat to profit ability that exists due to - 1) The liability exposure Indicated by the exceedingly stringent guidelines regarding water and soil contamination established by the Environmental Protection Agency; which exposure was emphasized by the recent pyranol oil spill in Tennessee that cost the Group $800,000; and 2) The possibility of a significant loss in future sales revenue. To focus the Task Force on assessing the business risks involved Instead of on technological programs, the study will be founded on one fundamental assump tion: No substitute for pyranol will be developed. The reconnended business course of action is to be selected from among alternatives (including doing nothing different) that have been evaluated as to profitability and other financial considerations, significant impact on operations, trade-off opportunities, the implications to customers, and Implementation timing. A written report will be made of the evaluations, conclusions, reconrondations, and alternatives considered. The highlights of the report will be given in an oral presentation to the General Manager, Transmission and Distribution Equipment Business Division. Three months is the target for completion of the study. GENP 006036 774685 TASK FORCE - BUSINESS POSTURE RE: PYRANOL TRANSFORMERS OUTLINE OF WORK PROGRAM uuwj ______________ Areas of Study________________ . I Liability exposure of continuing manufacture - Examine the degree of liability exposure by taking Into account factors such as: o Annual volume of units, where used, how shipped, etc. o Past rates of accident frequency and sever1ty - Make a probability projection of future accidents ft quantify potential costs - Consider Intangible risks related to EPA ft public relations Prime Responsibility James S. Nelson Consultant-Product Environmental Capability (Corporate Staff) J. G. Jewell Manager-Applied Mathematics Lab (GTRO) Timetable for TaskForce F/W_________ Activities __________ 30-31 C. J. Meloun approve assignment, representatlon, out of work program,and timetable 32 U. H. Nave forward above to the Task Force members and Dept. General Managers 33 Planning meeting of Task Force 6:15 AH Thurs. B-23-73 Phi la. 1Sharon Willi II Future availability of pyranol -Evaluate the prospects for the continu ing availability of pyranol. - Consider: a Plans of Industrial ft Power Capacitor Dept. a Vendors re: other users of pyranol ft the actions anticipated by the vendors ft users NEKA posture, programs, effectiveness III Business significance of pyranol transformers - Product applications ft market size - Sales ft net Income Involved - Financial ft operating consequences of with drawing, totally or partially, from the business -- - -*` - Other products (if any) by which to serve the market ft their availability to TftDEB Division - Financial ft other requirementa Imposed by product alternatives - Implications to customers of the alternatives - Business actions ft timings foreseen E. L. Raab Manager-Dielectric Systems Lab (GTRO) Dr. N. Pozefsky Manager-Technology Planning 1AP Capacitor Dept. 34-40 Task Force menhers,individually and as teams: a, compile, analyze ft Interpret data; b define initial conclusions; c Identify alternates I evaluate; d organize significant supporting Information. tf. H. Rogers Operational Plannlng-Med. Trfr. Dept. D. R. Bair Hgr.-Custamer Service Eng.-Pwr. Trfr. Dept. A. K. Blackburn Operational Plannlng-Dlst. Trfr. Dept. 41 Task Force meet to a) consider the Individual i/or team findings; b) Integrate results; c) scope Initial assessments, conclusions ft recomnendatlons; dl formulate structure of final report; e) make assignments for writing the report g) Identify additional information required 8:15 AH Tues. 10-9-73 42-43 Obtain additional information; prepare first drafts of reports and distribute. / .. V.---,/;. **yl,' " VO GO vo 'd' r- -/*yiaV*1," VV>` ftreas of Study IV Conclusions and Recotrmendatlons - Assessment of alternative actions, trade offs and consequences - Reconmended business course of action Prime Responsibility w. H. Nave and Task Force %A(emc\ lge c tip-*r V J J J I 'U T,metabLiSut' For<GENP 006041 44 Task Force meet to a) Review Individual reports; b) determine final assessments, conclusions and recoimiendatlons; c) make assignments for oral presentations 0:15 AH Wed. 10-31-73 B:15 AH Thurs. 11-1-73 45-46 Write final report and prepare oral presen' tatIons 47 Task Force meet to a) review final report b) review oral presentations 1:15 PH Hon. 11-19-73 8:15 AH Tues. 11-20-73 W. H. Nave provide production of final report 48 Task Force make oral presentation to C. J. Keloun Sunmary of Task Force Meeting Dates m(h8B 15 AH Thurs. 8 15 AH Tues, 15 AH Wed, 15 AH Thurs. 15 PH Hon. 8-23-73 " 10-9-73 10-31-73 ' 11-1-73 11-19-73 1 8 15 AH Tues. 11-20-73 T / W 48 with C. J. Heloun * C- ;* ao VD :* [> r- * V' 1 ;;.`l4, y I. vjJEUNi^ U U 6 0 3 9 TECHNICAL RESOURCES G E N E R A L ^ ) ELECTRIC ~ \ RIVER ROAD. SCHENECTADr. N. T. 12345 SUBJECT D I AL COMM 8*235-2261 TASK FORCE ON CONTINUATION OF PCB USE December 17, 1971 Messrs COPIES: AE Peltosalo VA SchloCterbeck CJ Meloun TA Vanderslice LF Hart, Jr. V . EL Dobbins DJ Voss W U, Drucker JF McAllister JS Anderson A M Buecht JF Young RJ Boudreau if / i, Task Force O bjective On December 15, 1971 a meeting occurred between corporate representatives of Moasanto and General Electric Company to discuss conditions under which Monsanto will continue to supply polychlorinated biphenyls (FCB) as a dielectric and coolant in sealed electrical apparatus. Reference is made to the memorandum of that meeting issued by J. F. McAllister (12/15/71).* This is a statement of the work now contemplated as necessary to execute Task #1 and Task #2 as identified in that memorandum, viz.: t Task #1 - General Electric Risk/Benefit Analysis Task #2 - Statement of Public Need, for submission to the Office of Science and Technology (O.S.T.) For each task, it is expected that responsive information will need to be generated for each of the product classifications involved (i.e., transformers, power capaci tors, and small industrial capacitors), after which the product-oriented findings must be melded into the two final reports constituting the output of the task force. Structure of Task Force and Deployment of Resources Our proposal for the structure and membership of the Task Force is diagrammed as Exhibit 1 (attached). It contains two "product" teams (capacitors and transforme and assigns responsibility for consultation, liaison, and final report writing. The proposed product team structure involves the premise that each team chairman will be able to call upon whatever Group specialists are required for task accomplishment. It is evident that support will be needed from persons involved in such activities as strategic business planning and marketing, as well as engineering. As noted above, each product team (headed, respectively, by Pozefsky and Raab) will provide material both for Task 1 and Task 2. A preliminary description of the content of the reports to be generated is given in the accompanying Exhibit 2 and Exhibit 3. Each team will be assisted by Dr. LeBlanc in achieving the degree of documentation and the basis for credibility appropriate to corporate-level review (in the case of Task 1 information) and review by the prominent scientific personnel of O.S.T. the case of Task 2 information). Mr. Nelson will serve a liaison function as a menr.b * Copy attached for those not on original distribution. 774680 GENERAL ELECTRIC Messrs. 0. H. LeBlane, Jr A. Po2 efsky E. L. Raab E. L. Simons - 2 December 17, 1971 of each product team and assist Dr. Simons with the organization of the final reports. The Time Element The first order of business must be the accomplishment of Task 2. Because a "government position news release" is anticipated from O.S.T. (or possibly from the Interagency Task Force on PC3, using inputs from O.S.T.) within 30 days, it is apparent that for our contribution to be properly assimilated, it must be submitti to O.S.T. in about two weeks from the date of the Monsanto meeting; i.e.f January 1, 1972. This leaves precious little time, with the seasonal holidays intervening. Accordingly, Task 2 must receive priority, with Task 1 appropriately' following a few weeks later. Initial Task Force Meeting The first meeting is called by Chairman McAllister for Monday, December 20, at 9:30 a.m, in Schenectady, Building 36, Room 505. Work statements, assignments, and schedules are to be firmed up. Product Environmental Compatibility JSN:ev Att. GENP 006040 774689