Document V3MjQkqMQOdndz7JwJO6J6gDN

Monsanto rfrOM <name b> locationi J . P. Snow - B3NF - (4-4230) DATE , June 8, 1977 UBJTCT i PCB RETIREMENT i TO : Messrs. G. L. Bratsch P. 0. DeGarmo F. P. LaBelle (2) H. J. Lawler R. S. Nelson J. Newton-Brussels F. A, Stroble (8) L. 0. St.Peters R. A. Stohr C. A. Sweets (DEX) ^Messrs. L. A. Miller F. J. Holzapfel R. E. Beal J. E. Hastings -T. M. King M. F. Mee E. T. Mollica R. A. Pohl L. B. Rubin Attached is draft of the PCB Retirement Request for your review. Would you please address your comments to me no later than June 16. JPS/ec Attachment EX P-3223 Page 1 of 4 0148118 PCB-ARCH0748567 Monsanto MONSANTO COMPANY ST. LOUIS, MISSOURI REQUEST TO CORPORATE I ADMINISTRATIVE COMMITTEE NIIMRFR- 21-714 nATF June 8. 1977 page__2_of1 Initiating Organization: Project Title:_______ SPECIALTY CHEMICALS DIVISION MIC RETIRE WORLDWIDE PCB ASSETS Brief Summary of Request: Situation At the end of 1976 Monsanto announced the worldwide termi nation of PCB manufacture and sale by October, 1977. Environmental unacceptability of PCBs precipitated this decision. Termination of all business activity is sched uled for October 31, 1977 with dismantlement, decontamina tion and disposal of all equipment completed by June, 1978. Facilities affected by this request are the W. G. Krummrich and Newport Plants. An accrual for $2.8 R ($2.0 R domestic - $0.8 M interna tional) was approved in 1976 and the loss was charged to cost of goods sold in 1976. Obsolescence expense to be approved via this request: (Dollars in Thousands) US UK Total Net Assets Retired 392 160 Dismantling, Decommis sioning and Decontami nation Expense 1570 640 Total 1962 800 552 2210 2762 Action Requested * The Board of Directors approve the attached Retirement Request. A- 1 104 S/73 >1 onedt F j_ Fitzgerald ' EX P-3223 Page 2 of 4 01*8119 PCB-ARCH0748568 MONSANTO INDUSTRIAL CHEMICALS COMPANY RETIREMENT REQUEST To: Mr. J. W. Hanley June 8, 1977 SPECIALTY CHEMICALS DIVISION W. G. Krummrich and Newport Plants Retirement Request No. 21-714 TITLE: Retire Worldwide PCB Assets Summary of Property To Be Retired ($M) Gross Assets to be Retired. Less: Accrued Depreciation thru 8/77 Salvage Value Estimated Retirement Loss U.S. 3083 2691 0 392 Estimated Dismantling and Decommissioning Expense Estimated Decontamination Expense Uninstalled Spares Estimated Net Charge to Obsolescence Repayment of Investment Tax Credit 1217 323 30 1962 14 U.K. 768 608 __ 0 160 374 260 6 800 0 Total 3851 3299 0 552 1591 583 36 2762 14 F. Fitzgerald Managing Director, MIC EX P-3223 Page 3 of 4 0148120 PCB-ARCH0748569 REASON FOR RETIREMENT Late in 19 76, Monsanto announced that it would terminate it's worldwide polychlorinated biphenyl operations no later than October 31, 1977., The reason for this action was the persistence of these chemicals in the environ ment . Subsequent to this decision, Monsanto recognized $3.8 M extraordinary obsolescence loss in 1976 ($2.0 R Domestic, $0.8 M International). The purpose of this retirement request is to provide authority to retire, decontaminate, dismantle and properly dispose of the physical assets involved. The domestic portion of this retirement will include the dismantling and decontamination of the Aroclor and Pyranol facilities at the W. G. Krummrich Plant and transportation of the dismantled equipment to an approved toxic land fill. The existing tank car fleet will be decontaminated and used in controlled service. All product inventories and residues will be incinerated. The international segment of this request covers the dis mantlement and decontamination of the Aroclor and Pyroclor facility located at Newport, Wales. Disposal of the physical equipment will be treated in a manner similar to the domestic program. The program to dispose of the PCB facilities has received endorsement of environmental and legal groups within MIC. ALTERNATE COURSES The following alternate courses were considered and re jected because of potential contamination problems: . Retention of the equipment to manufacture other products. . . Sale of equipment for scrap. . Sale of equipment allowing subsequent use in Manufacturing. EX P-3223 oPaae 4iof 4 PCB-ARCH0748570