Document dagGd0YVrEVmqEz1qMmkb2X5R

to: Homer M. Cole FROM: Ronald E. Benton SUBJECT: Proposal From NWE DATE: March 3, 1993 ) JvJtu&iT PtAINTlFPS EXHIBIT RMC-99 I have read the proposal from NWE regarding its recommendation that they be named Reynolds' sole source asbestos "monitor" consultant. As with any consultant there are pros and cons. First the pros. By allowing NWE more responsibility and authority in this area, they may in fact be able to reduce our removal costs by keeping closer track of the entire process beginning with the bid stage. It should also provide for more consistency in the way in which asbestos jobs are performed throughout the company. NWE will also be better able to follow the work practices of the abatement companies and "weed out" the ones that don't meet our qualifications. NWE would also be in a better position to keep abreast of specific state regulations which may be different than the current federal ones. Finally, it would hopefully free up some of my time and that of the plants especially with regard to reviewing specs and making recommendations. On the negative side. First and foremost is the possibility that this is an example of the proverbial fox guarding the hen house. By having NWE as our sole source provider Reynolds may not be getting the most cost effective service. And with only a few years of experience at several Reynolds' plants, NWE does not fully understand our philosophy regarding asbestos abatement. As a result, NWE recommendations may in some instances be contrary to ours and therefore represent a potential liability. To avoid this problem there will have to be quite a bit of contact with NWE, at least in the beginning, and therefore may not really free up much time for RMC personnel. Currently, NWE has onsite personnel at Alloys, Hurricane Creek, Troutdale, Sherwin, and Longview. They were removed from McCook by plant management. Generally, I am only brought into a situation if a question arises concerning company policy or there is a difference of opinion. Also, NWE will review all bids to ensure that the proposed work is adequate from a regualtory compliance perspective. Consequently, my time allocated to this area is not burdensome for the most part. In closing, I would recommend that we not accept NWE's proposal unless there is a change at the plant level which would require more time and input from me (i.e. NWE's services are terminated as a cost cutting measure). Ronald E. Benton TX TINER RMC0012140 REYNOLDS METALS COMPANY CONFERENCE FEBRUARY 23, 1993 About Northwest Envirocon, Inc. Sixth year of business Six (6) Regional offices Portland, OR Little Rock, AR Sacramento, CA Houston, TX Chicago, IL Muscle Shoals, AL Officer of company designated to monitor federal legislation and regulations, and case law, pertaining to the services provided by NWE, and further charged with informing all offices and training personnel in the significant changes Asbestos Management Services NESHAPs Inspections (Pre-Renovation, Pre-Demolition) Asbestos Surveys OSHA-type Compliance Audits Operations &- Maintenance Programs Contract Documents and Pre-Bid Conferences Project Administration Air Sampling.(pre- and post-abatement, personal, area) Bulk Sample Analysis Periodic Reinspections Training- - worker, supervisor, O&M, awareness Environmental Services Phase I Environmental Assessments Site Characterizations Site Safety and Health Plans, Work Plans Project Administration Monitoring Services - personal and environmental Closure - Reports Underground Storage Tank Services Limited or full site characterizations Contract Documents and Pre-Bid Conferences Project Administration Closure Sampling ... Closure Reports TX TINER RMC001214 Industrial Hygiene Services Air Contaminant Testing Indoor Air Quality Noise Studies Emergency Response Programs HAZWOPER Training NWE does not provide the following environmental services: Stack emission testing Wetlands consulting Pollution discharge permitting Nuclear wastes and hazards Laboratory analysis (contracted out) II. NWE and RMCO - First P.0, from a Reynolds facility to NWE: 1987 - Blanket. Service Agreement since 1989 Secunding Agreement: February, 1991 Austerity Program price reductions: May, 1992 - NWE has provided service for the following RMCO facilities: Troutdale Reduction: Asbestos Management Services . . Site Characterization - mercury Underground Storage Tank removal services Training Longview Reduction: Asbestos. Management Services. Training Longview`Cable: Asbestos Management Services Listerhill Reduction: Asbestos Management Services Waste Characterization sampling RMCO - NWE Conference Page 2 TX TINER RMC0012142 Sheffield Alloys: Asbestos Management Services Noise Study Air Contaminant Testing Misc. Industrial Hygiene Tasks St. Lawrence Reduction: Asbestos Survey McCook Sheet and Plate: Asbestos Management Services PCB Remediation Lake Charles Carbon: Asbestos Management Services Hurricane Creek Plant: Asbestos Management Services Waste Characterization sampling PCB Remediation Patterson Reduction: Asbestos Management Services Jones Mill: Asbestos Management Services Malvern Cable: Asbestos Management Services Hot Springs Rolling: .Asbestos Management Services - 'f'1' rXir Contaminant Testings io!'J Arkansas Recycling Centers: Asbestos Surveys Limestone Mining: Asbestos Survey RMCO - NWS Conference Page 3 TX TINER RMC0012143 Shervin Alumina; Asbestos Management Services _ j "'Respiratory Protection Training, Fit TestingJ ' Alabama Reclamation: Asbestos Management Services Qiiz Contaminant TestingJ III. NWE Accomplishments for RMCO Met 90 day negotiated limitation for completion of EPA mandated asbestos survey of Arkansas facilities NWE asbestos project administration resulted in a significant improvement in relationship between Arkansas PC&E and RMCO Obtained a variance from Arkansas PC&E which resulted in a documented reduction in bid letting from $1,044,000 to $415,000 (a savings of $629,000) on Phase III Projects 5 and 6 Negotiated an alternative means of disposal on Rust furnaces at McCook that saved approximately $500,000 Improved contractor productivity on pot shells 100% at Longview, resulting in 50% cost savings Implemented an asbestos Program in August, 1992, at Sherwin that is realizing cost savings of 50% TV. The Changing Regulatory Environment - Asbestos Asbestos NESHAPs Revision? Final Rule November, 1990 40 CFR Part 61, Subpart M* * Inspect facility for asbestos prior to reno vation or demolition * Requires inspection by trained personnel * Facility means any institution, commercial, public, industrial ... installation or building * Specific activities requiring inspection: Nonscheduled renovation operation means an operation necessitated by the routine failure of equipment RMCO - NWE Conference Page 4 TX TINER RMC001214 4 g fie<3 aoua^ajuoo 3jMlK - OOKS. saoxAias ouuq.uxffi pqo:iq.uoD ' xeuuosaad quxd 'xuuos.2d .xoq.oE.iq.uco q psnLiopjiad aq saxqxAxqoe saqq jqqaq ssxpq6q 'soqsaqs 50 quamuxquoo qo >qoqs 'x^sodsxp ' uoxqqqodsuqq dnuaxo AouEiama/iXT^s soqsaqs soqsaqs uxq -uoo qqq joaqaqq suoxqqod qo saqrtq -onqqs 50 uoxqAOuaq qo aouuquxm 'qxdq 'uoxqqaqx 'uoxqonqqsuoo KDY 0 lEAOmaq quesaqd sx soqsaqs qq >axs qo uoxqxxomap :6uxpnxoux 'sexqxAxqo uoxq.oruq.suoo n oq saxxddy * 3*0 oq 0'3 nojcg: T3d paqarto-i * 8S * 936T dd3> 63 986T 'Ak soqsaqsv qoj pqpuqs ^qqsnpui uoxqonqqsuoo YHSO - saouqs -nmojxo uxqqo qapun anbxuqoeq x9OT^T9U9 Axquqaqx u s M6uxqunoo quxod,, sapXAoqa * uosqad pauxqq Aq x^omaq soqsaqs 3.0 uoxstAJzadns saqxnbaa * uoxqxxomap 6uxqnp paqaqtmooua sx koyH paqoadxa -un quAa am ux uxd Aouafiqaraa saqxnbaa * II Aao6qo pu I Aqo6aqo 1KOYH s sxxqaqnr fiuxuxEquoo-soqsaqs saxjxssEioaa * (s)jaqmam Xqnqoiurqs f>uxqqoddns-pox u qno 6ux3fq qo fiuxspaq* sueac uoxqxxomaa Aa Au ux squauodmoo qom qo uo 50 AqxxT09? 9 buxqaqx suam uoxqAOUH paqoxpaqd aq uo amxq qqq pu nixq 50 poxqad uax> uxqq? pAomq q XXTft KDYH anios qoxqw ux uoxqqado u suacr uoxqqado uoxqAouq pauuxd TX TINER RMCOO1214 * Requires asbestos (Operations &) Maintenance Program at every location where the employer avails itself of small-scale short-duration exemptions from negative-pressure enclosures OSHA Standards for Asbestos - Construction and General Industry, Proposed Rules (Written comments closed 1/4/93) * Considering lowering the PEL to 0.1 * ..knowledge of the location, condition, and hazard potential of ACM is a rational predicate to employee protection." * . .certain high risk materials in accessible building/facility (emphasis added) be designated presumed asbestos-containing materials (PACM), and thus be treated as if they contained asbestos..." unless testing provides empirical evidence that indicates otherwise * "OSHA believes the major advantages of such a regulatory approach is that the materials and buildings/facilities with the greatest risk potential would be automatically targeted for mandatory communication and control procedures, and possibly testing." Asbestos School Hazard Abatement Reauthorization Act of 1989 (ASHARA), Public Law 101-637 * Extends AHERA (asbestos in schools) to inspectors, contractors and workers involved in asbestos removals in public and commercial buildings * Asbestos inspections must be performed by accredited inspectors * Asbestos response actions must be designed by. accredited designers - Various state laws resulting from Asbestos NESHAPs and ASHARA v. NWE Concerns 1. Where the appropriate response is to manage asbestos in-place, O&M Programs, hazard communication and training of affected employees, and periodic re-inspections may not have been implemented. RMCO -- NWE Conference Page 6 TX TINER RMCOO12146 2. Inspections for asbestos must be performed prior to demolition and renovation, and EPA's definition of renovation is so broad as to cover maintenance. Some RMCO facilities may be relying on very old, limited data, or on no data at all. 3. During demolition operations, there may not be an asbestos emergency plan in place with a trained asbestos monitor on-site at all times. 4. OSHA expects to implement revisions to 1910.1001 and 1926.58 Asbestos Standards by first quarter 1993, which will effectively require inspections by trained personnel to identify PACM or to conduct asbestos testing. With RMCO staffing levels, compliance may require outside assistance. 5. Where NWE is the "Monitor" as defined in RMCO Asbestos Procedures dated 5/9/90, our duties vary from plant to plant and we are at times held accountable for more than is described within the Procedure with no parallel increase in authority. 6. NWE can effectively mitigate asbestos abatement costs when we have the authority; in other instances, we neither conduct Pre-Bid conferences nor review bids. VI. NWE Recommendation We recommend NWE be named RMCO company-wide asbestos consultant; one Project Manager will be designated, one telephone number distributed to all RMCO facilities. All questions regarding asbestos are to be directed to this Project Manager. The Project Manager will advise the RMCO facility representative as to the applicability of current law and regulation. If a recommendation is made to inspect the facility, a written request will be directed to RMCO, Richmond, identifying the facts as understood of the case and the justification for travel. NWE shall always perform the initial inspection. NWE shall submit a budget for additional consultant and contractor services after the initial inspection. Where it is more cost effective, NWE shall assist RMCO in soliciting proposals for RMCO review for local "Monitor" consultants where additional work is required, shall specify the duties of the "Monitor," and shall review the work provided. NWE shall perform these services where it is deemed critical. To encourage cooperation and compliance, the cost of the initial inspection shall be borne by RMCO corporate. Additional expenses are to be borne by the plant/facility. RMCO - NWE Conference Page 7 TX TINER RMC001214 NWE shall develop, in conjunction with RMCO corporate personnel, the policy level elements of an Operations and Maintenance Program. Where needed and where indicated/ the o&M Program will then be amended to reflect state law and regulation, and local conditions of ACM, then implemented at the plant/facility level by NWE. Periodic inspections and o&M training shall be conducted by NWE. VXI. NWE Services in Addition to Asbestos Management NWE would additionally like to assist FMCO in underground tank management, air contaminant testing, lead based paint management (including abatement and monitoring), and other environmental concerns. RMCO - NWE conference Page 3 TX TINER RMCOO12148 memo from: Homer M. Cole , /Jr& &?r7'7 ^cr/t/^S. //jc/c'd&d ^ c/ oO Sts* <i^J^C^r^y -----REYNOLDS METALS COMPANY RICHMONO. VIRGINIA 23261 804/281-3506 TX TINER RMCOO1214 9