Document a1OwbOoopyxe9Kgk2dN27Rxy

J REPORT TO THE JANUARY KSETZK3 CP THE BOARD OP DIRECTORS OH TKE STATUS 0? PCB IMPLEMENTATION PROGRAM / The worldwide PCB action plan reviewed with the Board in December A is being fully implemented. Although customer acceptance has. in general, been positive, some are raising questions which may ereat problems. Ve remain hopeful we ean resolve these problems on a ease by ease basis. Ve are on our established time schedule. The status report on the domestic program is as follows: 1) Formal letter of notification to heat transfer customers was sent by registered mall on December 15, 1971, to all known users. All males have been discontinued. Some customer conversions to other fluids have been made, and Sur engineer team is available to help others convert on equest. ' 2) All original equipment capacitor and transformer customers for our PCB dielectric fluids were notified on December 21, 1971# that further sales after January 15# 1972# would be dependent on receipt of financially meaningful and acceptable hold harmless agreements. To date six companies have com* . plied, which represent 6356 of domestic dielectric sales: General Electric, Vestinghouse, McSraw-Edlson, ITS Imperial, Sprague Eleetrle and Federal Pacific. Additional customers .indicate they will comply and we expect the majority to do \ . so. Progress on this part of the program now permits us to v notify miscellaneous ntop*up" customers and repair shops of our plan and will permit referral to original equipment manufacturers for fluids. The dielectric program is also being extended to a small group of miscellaneous dielectric customers using our fluid in the manufacture of closed.switch gears, electric magnets and hermetically sealed electric motors. f 3) All plasticizer customers were notified on December 31, 1971, of our intention to discontinue PCT sales for this use effec* tlve March 31, 1572. In a limited number of hardship eases where the customer requires lead time to develop alternate formulations, such as certain investment easting customers, a program consistent with our overall program has been developed, including hold harmless agreements, to allow sufficient purchases before our cutoff date to peralt the customer's required reformulations. AON 00602* 130 TOWOLDMONOOOI341 *) A letter will be ent on January 31, 1972, to all users of PCT-contalnlng hydraulic fluids, notifying then that Monsanto Jwi 30^1972! of PCT'S f0r thl8 u#* no Uter tSF The status report on our EX-U.S.A. program is as follows: *) alea for *u tt,t other than as dielectric . fluids will be terminated January 31* 1972. 2) Continued sales of MB's for use as dlelectrle fluids after March 31* 1972, will be dependent upon receipt of hold ham less agreements acceptable to Monsanto from customers whose * financial responsibility makes such agreements meaningful in Monsanto*s opinion. 3) Sales of FCT's Ex-U.S.A. will be discontinued on the same time schedule as used on domestic sales. The President has authorized MICC's Managing Director to make exceptions on a case by case basis. Two have been made In our Sx-U.S.A. program: 1) Because of the safety needs of the German coal mining industry . for our PCB-contalnlng hydraulic fluids, sales will continue for this use for the shortest possible time beyond January 31, 1972, to permit clearance of substitute materials. Indemnity agreements are not possible, but techniques of sale reviewed with German counsel are being utilised to minimise our exposure 2) A commitment to sell 600 tons of our FCB dielectric fluids was made to the Russian state purchasing authorities In December, 1971, prior to formulation of our Bx-U.S.A. program. Completion of deliveries before our March 31* 1972, cutoff date Is not possible nor Is. an indemnity ,teasIble.^, ,3 .^dAacloaure--f-Tnr<>blsaf:TSr-b,elh'g"iaSb','buV'some deliveries will occur Into July, 1972. Ve have been in dose touch with the Federal Interagency Tas'k Force under Dr. Edward J. Burger, Jr. *s direction. This task force Is preparing to Issue a report on PCB's about mid-February. Ve will be allowed to work with them in Its preparation. On January 21 and 22, Monsanto representatives met with a group of scientists to discuss the general PCB situation. Present were Dr. Varren Muir, Council of Environmental Quality, Dr. Edvard Goldberg, Scrlpps Institute of Oceanography, Dr. Robert Rlseborough, University of California, and George Harvey, Woods Hole Oceano graphic Institution. The meeting went well and we feel the scientists left with a much fuller understanding of the overall PCB Issue than they had previously. 231 I ... ADM 006025 TOWOLDMONOOOI342 3- Ve have discussed the essentiality of the use .of PCB's for dleleetrle fluids with key coapanies In the electrical industry and General Electric and Vestinghouse Electric have submitted reports to the National Industrial Pollution Council and the Office of Science & Technology in which they testified as to the necessity for continued use in these applications and the steps being taken to contain the PCB's in these electrical closed oyster Ve expect to complete our entire implementation program on sehedul \ i. *%>& ' S' ADM 006026 132 I TOWOLDMONOOOI343