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LAC 25 - I MANUFACTURING CHEMISTS ASSOCIATION MINUTES OF MEETING LEGAL ADVISORY COMMITTEE Conference Room, Wilmer, Cutler & Pickering 1666 K Street, N. W. , Washington, D. C, February 2, 1978 PRESENT James I. Wyer, Chairman Leon C. Holt, Jr. , Vice Chairman American Cyanamid Company Air Products and Chemicals, Inc. Ernest K. Bean (alternate) Ray W. Brown Richard W. Duesenberg Thomas Kent (alternate) William E. McIntyre (alternate) Bernard J. McNamee E. J. Mooney John A. Stichnoth S. Maynard Turk Donald P. Walsh John A. Wilson The BFGoodrich Company Mobay Chemical Company Monsanto Company Allied Chemical Corporation E. I. du Pont de Nemours &c Company Hooker Chemicals & Plastics Corp. Nalco Chemical Company Union Carbide Corporation Hercules Incorporated Shell Oil Company Diamond Shamrock Corporation Bruce M. Barackman, Secretary Edmund B. Frost Andrew Macdonald John H. Pickering Manufacturing Chemists Association Manufacturing Chemists Association Wilmer, Cutler & Pickering Wilmer, Cutler &: Pickering ABSENT Robert H. Bidwell Gerald M. Doppelt Brian D. Forrow (alternate designated) James H. Hanes Richard A. Heuerman (alternate designated) Peter H. Kaskell Charles E. Welch (alternate designated) Exxon Chemical Company Chevron Chemical Company Allied Chemical Corporation Dow Chemical USA The BFGoodrich Company Olin Corporation E. I. du Pont de Nemours & Company GUESTS Howard D. Fashbaugh George S. Flint Terence J. Gallagher R. Price Howard I. C. Macdougall Gordon Mayberry Hugh M. Robinson John T. Subak Virginia Chemicals Inc. Tenneco Chemicals, Inc. Pfizer Inc. Phillips Petroleum Company Stauffer Chemical Company Conoco Chemicals Manufacturing Chemists Association Rohm and Haas Company CMA 086489 LAC 25-2 The meeting convened at 12:32 p. m. with chairman Wyer presiding. 1. Minutes of the January 5, 1977 LAC Meeting The minutes were approved as distributed. Mr. Wyer reported that in con nection with item 3 on product liability, he has requested comments from the Tax Policy Committee on the tax incentive bill drafted by Marsh & McLennan. 2. Product Liability Following discussion and slight modi fication, a statement of principles together with a background explanation and proposed implementation strategy were approved for consideration by the MCA Special Committee on Product Liability for inclusion in the report that committee will make to the Board. 3. Safety Publications Program Mr. Barackman described MCA's ongoing efforts to obtain insurance. Mr. Pickering advised there appeared to be little chance of officers, directors, or member company liability, noting the possibility of individual committee members' liability under the borrowed servant doctrine. Mr. Frost will work with Mr. Wyer and a couple of others, to be named from the LAC to prepare recommended actions to be taken in the event that adequate insurance coverage at an acceptable premium can not be obtained. 4. OSHA Rulemaking Copies ot Mr. Driver's letter of January 27, 1978, to the Board concerning a proposed standard on Chem ical Substances Identification were distributed. Mr. Frost said an MCA interdisciplinary group will prepare alternative proposals after which he plans to consult with outside counsel, Mr. Mayers, regarding legal and advocacy aspects. The Committee supported this approach. 5. Reports by Counsel 5. 1 Mr. Pickering Reported that Local Counsel in the Arcell case has filed on behalf of MCA a motion to dismiss for repeated failure of plaintiffs to supply ex perts reports as ordered by the court; plans proceed with motion for summary judgment. Distributed copies of a press release from OSHA announcing a new permanent standard on benzene noting that it was the same as the ETS except for an added "action level" pro vision. CMA 086490 LAC 25-3 5. 2 Mr. Frost Identified three issues relating to TSCA raised at a recent meeting of the Senior Advisors to CRAC -- two involving confidentiality claims regarding section 8 inventory submissions and one concerning whether a whole category of substances can be given a priority under sec- * tion 4. He will refer these issues to the Legal Affairs Subcommittee of CRAC. Discussed a letter from Mr. Davis of OMB which raises the question as to whether cer tain government agencies, such as EPA and OSHA, should have enforcement and appellate litigation authority independent from the Jus tice Department. Mr. Frost will arrange a meeting with Mr. Davis for a representative group of general counsels to present their views, Referred to a letter from Mr. McNamee relat ing to the question of including, on the recom mended label for a chemical, a reference to the MCA Safety Data Sheet when one exists. Mr. Frost will advise further on this matter. 5,3 Mr. Barackman reported MCA's Executive Committee Approved Local Counsel pursuing settlement feelers in the Arcell case and proceeding with a settlement at a cost to MCA not to exceed $80,000. Approved contracting with State and Federal Associates Inc. for a $3, 000 reporting service for state legislation on product liability. 6. Other Matters Mr. Frost will advise whether MCA should participate as amicus in litigation opposing OSHA's ETS on acrylonitrile. The Committee concurred in the recommendation of CRAC's Legal Affairs Subcommittee that MCA should not litigate EPA's guidelines concerning section 8(e) of TSCA. 7, Next Meeting The next meeting of the Legal Advisory Committee will be a luncheon meeting at 12:00 noon, at the law offices CMA 086491 LAC 25-4 of Wilmer, Cutler & Pickering, 1666 K Street, N. W. , Washington, D. C., March 2, 1978. Minutes subject to approval February 15, 1978 BMB:jb Bruce M. Barackman SecretaryLegal Advisory Committee CAM 088492