Document dQKyg989vB7q53YG4r5M4o5eR

INTRODUCTION ft'fi'i -- i f- <// - 1. 1929 FRANK CLARKE INVENTED PYRANOL FOR DIELECTRIC USE. ir E?"1 f"*1 2. 1931 - MONSAHTO-GE RELATIONSHIP BEGINS. 1--r' .'1^ L/, /7 T'y-- - OVER 37 YEAR PERIOD UP TO 1967, BUSINESS OEVELOPS TO (fC _ r-r MONSANTO^ 80M POUNDS (S12.I3M) PER YEAR. MANY USES^,^ rM*. r GE - MAJOR SUPPLIER - $ I SO-160M PER YEAR CAPACITOR MARKET - S50-60M PER YEAR TRANSFORMER BUSINESS. I MONSANTO CLOSE TECHNICAL AND COMMERCIAL RELATIONSHIP WITH GE ON BOTH CAPACITORS AND TRANSFORMERS. NEED FOR BALANCED USAGE, COST, PRICING RELATIONSHIP. 3. 1968 - PCS IDENTIFIED AS POTENTIAL PROBLEM. 4. 1970 - MONSANTO LIMITS SALES - GIVES UP SO* OF SALES VOLUNTARILY..''O/'ww* ' cu r SACRIFICE TO PROTECT ELECTRICAL USAGE. ADD INVESTMENT FOR AROCLOR ------- 1016. ELECTRICAL INDUSTRY - TIGHTER CONTROLS. CAPACITOR INDUSTRY ADOPTS AROCLOR 1016 - MORE BIODEGRADABLE PRODUCT. ' 5. 1972 - GOVERNMENT TASK FORCE SUPPORTS CONTINUED USE IN TRANSFORMERS/ CAPACITORS - POINT OUT NEEO FOR CONTROLS - ALSO IMPLY LIMITED TIME PERIOD OF APPROVAL REPtACEMENTS SHOULD BE SOUGHT. 05739 MOWS 2 6. 1972 - MONSANTO/GE CAPACITOR PRODUCTS DEPARTMENT ESTABLISHED A TECHNICAL COOPERATION PROGRAM TO DEVELOP NON PCB ALTERNATIVES. - THIS PROGRAM NOW ESCALATED TO ONE KEY CANDIDATE, MCS 1238 BEING TESTED ACROSS TOTAL PRODUCT LINE. ' - DID NOT AT THAT TIME HAVE CANDIDATE WE DEEMED SUITABLE FOR TRANSFORMERS. - WE 00 NOW HAVE SOME CANDIDATES THAT WE ARE CONSIDERING AND THIS IS PART OF OUR PURPOSE OF VISITING WITH.HE. 7. 1975 ) PCB USED BY EPA TO DEMONSTRATE NEED FOR POLLUTANT CONTROL LEGISLATION. 7*if/r 6 yun, b) GE HUOSOH FALLS VERSUS NEW YORK STATE. c) INCREASED MEDIA EXPOSURE AND PUBLIC CONCERN. ' d) GE AND MONSANTO EXPOSED TO GREATER LIABILITY. ) ENVIRONMENTALISTS DISAPPOINTED AT APPARENT FAILURES OF CONTROLS. f) SCIENTIFIC REPORTS (KIMBROUGH /ALLEN) PROVIDE BASIS FOR GREATER RESTRICTION OF P8C ON HEALTH GROUNDS. HONS 057390 NOVEMBER, 1975 EPA - PCB HEARING IN CHICAGO. WE NEED TODAY TO TALK REGARDING OUR POSITIONS AT THESE HEARINGS. MONS 057391 ALL OF THESE 1975 PRESSURES INEVITABLY LEAD TO REAPPRAISAL BY: ' GOVERNMENT MONSANTO GE GE'S CUSTOMERS _ 7~c &L <___ J7> dc A^v ~ *7 Srt ? ^CciCi , L<^ mASiw'Cqc C1^ / ' ^ t' ~n lo-J^ HONS 057392 5 IF ASKAREL CAPAC1T0RS/TRANSF0RMERS ARE PERMITTED TO CONTINUE, ADDITIONAL CONTROLS WILL BE IMPOSED INCREASING COST TO MONSANTO, GE AND GE CUSTOMERS. 2. a) IF GE CAPACITOR GROUP LOSE NEW YORK CASE, WE BELIEVE IT LIKELY THAT THIS WILL LEAD TO A MOVE AWAY FROM PCBS IN CAPACITORS. . b) PCBS FOR TRANSFORMERS COULD REMAIN AVAILABLE AT SOME INCREASED COST. c) WE ENVISAGE THIS WOULD BE A DIFFICULT CORPORATE POSITION FOR GE TO SUSTAIN LONG TERM. 3. ) WE DO NOT HAVE A FLUID THAT WILL BE APPLICABLE TO BOTH TRANSFORMERS AND CAPACITORS. b) ALL OUR TRANSFORMER CANDIDATES ARE LESS FIRE RESISTANT THAN AROCLOR (PYRANOL). e) ALL CANDIDATES WILL NEED NEW CAPITAL INVESTMENT AND COMMITMENT FROM OUR CUSTOMERS TO BUY. HONS 057393 i .1 'j 6 4. WE MUST ACCORDINGLY MAKE SURE THAT INDUSTRY (AND THAT MEANS GE) NEEDS SUCH INTERMEDIATE FIRE RESISTANT FLUIDS. 5. IF SUCH FLUIDS ARE NEEDED, WE MUST MOUNT AN EFFECTIVE JOINT DEVELOPMENT PROGRAM. 6. WE RECOGNIZE THAT GE USE ASKAREL IN FOUR AREAS WITH DIFFERENT TECHNICAL/ECONOMIC REQUIREMENTS: INDUSTRIAL LOAD CENTER MEDIUM VOLTAGE POWER PRECIPITATOR TRANSFORMER/RECTIFIERS RAILROAD - NWAR U~Ur<T*~< (/M^C/id 7 WE RECOGNIZE IN SOME OR ALL OF THESE AREAS GE MAY HAVE OR BE CLOSE TO CONTINGENCY SOLUTIONS WHICH EXCLUDE MONSANTO. IF THIS IS SO, PERHAPS GE'S ANO OUR INTERESTS MAY BE BETTER SERVED BY OUR PLACING GREATER EMPHASIS ON CAPACITOR PROGRAM. T* WHATEVER WE DECIDE, WE MUST ENSURE THAT OUR POSITION IS APPROPRIATE AT NOVEMBER'S HEARING. . HONS 057304 7 QUESTIONS 1. IF WE WERE FORCED OUT OF PCBS RAPIDLY, WHICH GE TRANSFORMER DIVISIONS WOULD BE WORST HIT7 <r<- wo-*-' i if 2. DO JN^. SOME, m ALL GE DIVISIONS NEED AN INTERMEDIATE FR FLUID FOR THEIR MARKET (OR DOES GE PREFER NOT TO USE ANY FLUID)? 3. IN VIEW OF POTENTIAL CAPITAL NEEDS, WOULD SUCH OEMAND BE VIEWED AS SHORT OR LONG TERM7 A. WHAT TIME PRESSURES DO GE FEEL? 5. DO WE NEED TO RUN SEPARATE DEVELOPMENT PROGRAMS WITH EACH DIVISION? ARE GE PREPARED TO ESTABLISH A TASK FORCE REPRESENTING ALL DIVISIONS AND COVERING TECHNICAL/MARKET CONSIDERATIONS TO INTERFACE WITH MONSANTO IN ORDER TO ACCELERATE PROGRAM? 6. CORPORATE GE TRANSFORMER APPROACH AT CHICAGO. LATER: WHAT SHOULD BE FREQUENCY OF REVIEWS SIMILAR TO TODAY'S? MONS 057395 <1? 7qi mi 71 v/ HONS 057396