Document g242x7ZeNEwm0k5wRE8maLQRe

FE F#rsc?ts atami santoiffo rwumjufcs esra&aE I F THE F I I.M IMAGE IS LESS CLEAR THAN T H IS N O T IC E , I T IS DUE THE Q U A LITY OF THE O R IG IN A L DOCUMENT. PCnaaCSINMTD BIPHENYLS A Report on Uses, Environmental and Health Effects and Disposal ao o deposition exhibit \J'}5 08J 05^3557 Monsanto I > } J! WATER_PCB-SD0000063098 FRSfECSSS KM'ELLM.l Wm&hSTQ immASS* COVtSABI LmOAtXOlf _ INDEX Preface Section 1. History of Monsanto Production and Sales of Chlorinated Biphenyls. Section 2. Information on health Effects. Section 3. Monsanto Actions Resulting from Health Oata. Section 4. Communicating with Customers. Section 5. PCB Disposal, O-i Hx4 w-n j-j M tn =o! S OS HM ^H wnr omi z> CC*1l o VI Sr cn ss nn oc ro >rM > -*4 HX >2 X O 0 0> I t I 11 ______ i ii 05*3556 WATER PCB-SD0000063099 rmr%cra> ta.TB.x&Li msme&MTQ rssoiuiscs eefrs&ag Lzrzaxtzan . PREFACE ii nOHi*-l* H (II h Szn oJO a-Cal ->x1 mo o m rI The following report is a frank, comprehensive presentation of relevant aspects of the PCB ssoe. From Monsanto Company's perspective. PCBs are a classic case history of a true risk/benefit dilemma. Monsanto is proud of its conduct with respect to tne PC8 issue and stands on it* record, descnoed in this report, as being totally responsive and responsible to the public interest. The com pany nas continued, since termination of production and sales, to pro.ide the resources to heip estabiisn good testing practices. The company further supports ongoing researcn to more definitively estabiiSi tne possible risks associated with PCBs in the environment, and funds studies to identify innovative approaches aimed at reducing PCBs in the environment. In addition, Monsanto continues to respond to legitimate requests for technical advice and assistance. Monsanto believes that this continuing allocation of its resources futher demonstrates its commitment to serve the public interest. 1 > 3 oo a) i i l 05<* 3 5 59 WATER_PCB-SD0000063100 r%DEC?KB MXTBLX&Ll SSOSSAFTO niiimJUfei COVESA0I LI?X?ID* HISTORY OF MONSANTO PRODUCTION Section 1 AND SALES OF CHLORINATED BIPHENYLS_______________Paoe 1 Monsanto entered tne cnlorinated biphenyls business in 1935 when it purchased the Swann Chemical Company. Production and distribution increased until the early 1970's, when, in response to reports of its presence in the environment, Monsanto restricted sales of chlorinated biphenyls. In 1977, the company ceased production and distribution of chlorinated biphenyls in cooperation with the electrical industry. Chlorinated biphenyls were banned (except for certain applications) in the U.S. in 1979. Sales and Distribution The chemical structure of the polychlorinated biphenyls has been known for nearly 100 years. Commercial pioauction of these materials was initiated m 1929 by the Swann Chemical Company in response to the electrical industry's need for improved dielectric insulating fluids which would also provide increased fire resistance when used in transformers and caoacitors. As the unique functional characteristics of these materials became more fully understood, additional uses were found. Their fire resistance made them an excellent choice in high pressure hydraulic applications associated with high risk of fire such as die casting and steef production. Their thermal staomty and fire resistance were valuable in heat transfer systems. Tneir staomty, iow water solubility, low vapor pressure and solvency power made them attrac tive in carbonless paper systems. Their fire resistance, thermal stability and viscosity characteristics maoe tneir use aesiraoie m hot melt adhesives and other plasticizer applications. Chlorinated bipnenyis, therefore, evolved as a unique class of chemicals which met important needs for ootn industry and society. In some instances, fire and building codes required the protec tion of life and property offered by chlorinated biphenyls. It was within this framework, that Monsanto ano othe' orcsucers developed a growing worldwide business for these versatile products. The tonowmg cnarts snow tne data for chlorinated biphenyis through Monsanto's voluntary phaseout program to termination of production and sales in 1977. Significant points in these charts are: a. Heat Transfer--Between 1970 and 1972, a task force of Monsanto engineers worked coseiy wan customers to replace chlorinated biphenyl fluids with materials of equivalent thermal staomty but with unavoidable lower fire resistance. Phaseout wascompie.ad in 1972. '' a. Hydraulic Fluid-Development of replacement fluids began in 1970, and sales of chlorinated biphenyl-based fluids were discontinued in 1971. c. Plasticizer Application^-Sales of most chlorinated bipnenyl plasticizers were terminated in 1970, witn pnaseout completed in 1971. c. Miscellaneous Industrial Uses (such as vccuum pump fluids) --Sales ended by 1971. These voluntary restrictions resulted in a 64 percent reouc on in Monsanto sales of chlorinated b.pnenyis irom 1970 to 1972. However, termination of sales for dielectric uses would have resulted in severe economic and social dislocation. This was recognized by the federal Interdepartmental Task Force on PCBs`" which conduced in 1972 that 'Their continued use for transformers and caoacitors m the near future is considered necessary because of the significantly increased risk of fire ana exoiosion and the disrup tion of e ectricsi service wmch would result from a ban on PCB use." O 5^ 3 id 0 IF THE FILM IMAGE IS LESS CLEAR THAN T H IS N O T IC E . I T IS DUE T IIE Q U ALITY OF THE O R IG IN A L DOCUMENT. Xoo * O) y WATER_PCB-SD0000063101 I F THE F ILM IMAGE IS LESS CLEAR THAN T H IS N O T IC E . I T IS DUE THE Q U A LIT Y OF THE O R IG IN A L DOCUMENT. raartem igTiaxLu nopiMrro mww egroi&ae Linear; PCB MANUFACTURING AND SALES MONSANTO INDUSTRIAL CHEMICALS COMPANY 1957 thru 1978 (Thouisnd* of Pounds) 1857 1958 1959 1960 1961 1962 1963 1964 1965 1966 U.S PRODUCTION ID ID ID 37919 3651S 35353 44734 50833 60480 65849 DOMESTIC SALES 32299 26061 31310 35214 37538 33043 38132 44869 St 796 59078 U.S EXPORT SALES 12) 12) 12) 12) 12) (2) 3647 4096 4234 6852 DOMESTIC SALES BY CATEGORY Het Trintfer 0 0 0 0 0 157 582 929 1237 1766 Hydnuhci/Lubricana 1612 1549 2685 2523 4110 3915 3945 4374 4616 4258 Mile. industrial 704 755 1569 1559 2114 1681 1528 1692 1841 1779 Tr nsfofmr Capacitor 12955 5719 5984 7921 6281 7984 7290 7997 8657 8910 17028 14099 16499 16967 15935 15382 15606 19540 23749 28884 PIltLCiZlf Applications ID 2939 4573 6244 9098 8924 9181 10337 11696 13481 Pttroleum Additivts 0 0 0 0 0000 0 0 OOMESTIC SALES BY PCB GRADE. Aroeior 1221 23 16 254 103 94 140 361 596 369 528 Aooor 1 232 196 113 240 155 241 224 13 13 7 16 Aroeior 1242 18222 10444 13598 18196 19827 20654 18510 23 5 71 31533 39557 A/oelor 1248 1779 2559 3384 2827 4023 3463 5013 5238 5565 5015 Aroeior 1254 4461 6691 6754 6088 6294 6325 59)1 6280 7737 7035 A/ociof 1 260 Aroeior 1262 7587 31 5982 184 6619 359 7330 326 6540 361 6595 432 7626 414 8535 446 5831 558 5875 768 Aroctcr 1 268 0 72 102 189 158 210 284 190 196 284 A/ocior 1016 o 0 0 0 0 0 0 0 0 0 (1i P'cdwct-cn i mo r*ait ci:ef Aooncationi figures unavam^e during v' `"dicited. i2. U S *oon Srf i t.g^ej u^aa>(aoit during year indicated. X -a o a 0) r.. ^ \ LJ f WATER_PCB-SD0000063102 npttcsta mimo xsstjsAges e^m&@s mmnoi 1867 less 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 75309 82854 76389 85054 45417 38600 42178 40118 29710 29592 13330 0 63466 65116 67194 73061 34301 32242 37742 34406 25611 24329 12701 0 8124 11231 10624 13651 10648 6388 8346 5395 5712 4744 1548 0 2262 2S29 3050 3958 3060 752 0 0 0 0 0 4543 5765 8039 7403 1552 0 0 0 0 0 0 1426 1283 1079 1627 1155 0 0 0 000 11071 11585 12105 13828 11134 11314 14176 12394 12763 6002 1617 29703 29550 25022 26708 14141 20176 23566 22012 12848 18327 11084 13351 14404 16460 19537 3259 0 0 0 0 0 0 0 0 1439 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 442 136 507 1476 2215 26 35 57 28 20 0 25 90 273 260 171 0 0 0 0 0 0 43055 44853 45491 48588 21981 5537 6200 6207 6435 4418 51 4704 4894 5650 4073 213 0 0 0 000 6696 8891 3322 12421 4661 6115 7976 6185 6328 1584 1566 6417 5252 44 39 4890 1725 414 0 0 0 0 0 840 720 712 1023 'l 0 0 0 0 00 287 280 300 330 0 0 0 0 0 0 0 0 0 0 0 3334 20150 23531 21955 12820 18307 11084 0 0 0 0 0 0 0 0 0 O MH x n dw m oz OMa HwO oM n Ph w o H S oG *rM >a *-) H < X>z O O oJk cn i ? < t^ | _______ ( Cn ^356 WATER_PCB-SD0000063103 IF THE F ILM IMAGE IS LESS CLEAR THAR T H IS N O T IC E . I T I S DUE THE Q U A LITY OF THE O R IG IN A L DOCUMENT. no?tests uxttxzxu tiemtkMfQ mosaics ecrrraA Lmaxtrc* U.S. Domestic Sales in Millions of Pounds WATER_PCB-SD0000063104 I F THE F ILM IMAGE IS LESS CLEAR THAH T H IS N O T IC E , I T IS DUE THE O U ALITY OF THE O R IG IN A L DOCUMENT, U S. DOMESTIC SALES OF PCBs BY GRADE (The Upperm ost Curve Represents the Total Sales) r*QTic?s*> BAfgaz*x.t 8oaTo iBBBtAacs ecrresaae txyxaAyxes U.S. Domestic Sales in Millions of Pounds WATER_PCB-SD0000063105 nortersB ttfauu aosiim iBiwuufci cwms* lxtxsm'xqij . Section 1 Pace 2 HISTORY OF MONSANTO PRODUCTION AND SALES OF CHLORINATED BIPHENYLS Therefore, Monsanto agreed to continue supplying the products to manufacturers of electrical power distribution equipment who use chlorinated biphenyls only in sealed systems such as capa citors and transformers. In continuing to sell to such customers, however, Monsanto required assurances that the materials would be safely handled and properly disposed. In making this decision Monsanto believed I) that entry of chlorinated biphenyls to the envi ronment could be effectively limited and controlled by users 31; 2) proper maintenance and decom missioning practices could limit fluid escape from transformer operations, and 3) withdrawal from proouction for tnese applications would have stopped production of eouipment essential to the safe and efficient distripution and use of electrical energy. In addition, a more biodegradable lower chlorinated product iAROClOR'1' 1016) had been developed by Monsanto for use by the capacitor industry. Steps Taken in Labeling and Transport Practices for Ongoing Dielectric Sales, 1972-1977 Monsanto sniooed PCB fluids in both bulk carriers and in drums. Bulk shipments were made in Monsanto-owneo railroad tank cars, wnich were used exclusively for that service, or in customerowned tanx trucxs. Drum snipments were made in special reinforced drums. A multilingual warning label was affixed to each package giving a brief description of the nature of the contents and appro priate actions to be taken m the event of a spill or leak. We also supplied a label to be used on return shipments for incineration, wnich gave similar information. Industry Guidelines in June, 1970. the Board of Directors of the Power Equipment Division of the National Elec trical Manufacture's Association appointed a committee to review tne cniormated biphenyl situation l- 't atfectea eiecficai usage. As a result, in April. 1971, American National Standards Committee Cl 07 was estaon$"ed to develop guidelines for the safe use, maintenance and disposal of askarei* and asKare'-soaked materials used in electrical equipment. Monsanto participated in this commirtee. A ` na> craft was completed by Novemoer, 1972, and the Stanoard Guideline was published in 1974'31. Monsanto's Withdrawal from the Chlorinated Biphenyl Business When Monsanto decided in 1970 *o restrict sales of chlorinated biphenyls, there were no satis factory alternate materials for ciosed-svstem dielectric uses. This view was later affirmed by the EPA. At -east as late as a 1975 p^ss conference, the EPA reiterated it would not ask Monsanto to stop production oecause that would shut down the electrical power industry and the ranroads in snort o'der. The EPA ooiective was to find a way to proceed without snutting down the country. That was P'ecise v the ooiective to which Monsanto had been committed since 1970. The o'00'ems encountered m replacing chlorinated biphenyls were rooted in tneir unique fire res-stant ana a e ectric characteristics and in tneir roie in electrical ana industrial applications for AAQC.CR ' 11 i-acemjrk ol Monsanto Comoanv. ' Asua-ti ' s > oe-f- c 'jme 'o' *-re res-stant a eiectr-c fluids. including those whucn contained DoiycmonnateO 0 anenyis. mao<r is meet soect'CSI.ons set Oy transiormers and caoacnor manulaciuiers. _ 0 5<* 3 So 5 OO HI m to XCO 2 to o O-i a w >1 wor n to is <4 H 2S- ao G) \ WATER PCB-SD0000063106 IF THE F ILM IMAGE IS LESS CLEAR THAN T H IS N O T IC E , I T IS DUE THE Q U ALITY OF THE O R IG IN A L DOCUMENT. raoTiCTis MArsaxALj Mima rsaeaxees covhuoi imoxtio* . HISTORY OF MONSANTO PRODUCTION Section 1 AND SALES OF CHLORINATED BIPHENYLS______________ Page 3 45 years. The challenge facing the electrical industry was to replace chlorinated biphenyls in an orderly manner, without creating otner hazards of equal or potentially greater magnitude, and at the same time avoiding serious power and transportation disruptions. Monsanto expended considerable effort and money in maior research programs aimed at developing environmentally compatible replacement fluids for the electrical industry. The level of this research was greatly reduced m 1976 when the electrical industry developed the technology to adaot other compounds to its needs. It now aopears tne ongoing demand for liquid-cooled trans formers will be satisfied by using silicone compounds. In the capacitor industry, the trend has been toward materials sucn as phthaiate esters. In adopting these substitutes, tne electrical industry has been forced to accept lower fire resis tance. New safety devices nave been required to ensure that replacement equipment will not lead to increased risk to society from fire hazards. In our press statement of Octooer 5, 1976, Monsanto said we would complete distribution of all inventories and withdraw from the chlorinated biphenyl dielectric business by October 31, 1977. In making the announcement, Monsanto said the company would have targeted an even earlier shut down date had transformer and caoacitor manufacturers' conversion timetables permitted. All chlorinated bionenyi production was halted by Monsanto in July, 1977, and all customer shipments were completed by September, 1977, At the time we stopped PCS production, Monsanto established policies which oreciuoed licensing of chlorinated biphenyl technology and restricted sales of biphenyl to uses wmcn would not involve halogenation. PCBs corn-- e to be manufactured by other firms in Germany, France, Spain, Italy and certain eastern European countries. They continue to be widely used tnroughout tne world. Reasons for Monsanto Phaseout Scientific xnowieoge aoout the presence of PCBs in the environment, and about its possible significance, began to evolve during tne late 1960's. That evolutionary process, whicn is still incom plete. began witn two events-one in Japan and the other in Sweden. In 1968, aDOut 1,000 people m Japan became i" from eating rice oil heavily contaminated with Japanese-proauccd PCBs as a result o< an industrial accident which has come to be known as the Yusho mcioent. The level of PCB contamination in the rice oil was 2000 to 3000 parts per million, extremely high concentrations. Conclusions aoout that incident have been clouded by the unknown impact of impurities in the Japanese-made PCB. However, the incident sounded a cautionary signal. In Sweden, Soren Jenfth', using new analytical technology to investigate DDT residues in the environment, reported the possible presence of PCBs in fish tissue. Monsanto and others began immediately to stuov tne Swedish worx, following preliminary news media reports in late 1966. Before tne findings couia be confirmed or duplicated in the U.S., analytical methoos had to be refined m order to definitively separate PC8s from otner chlorinated hydrocaroons that were known to be present in tne environment. New lecnmques were reouireo to enable researcners to detect these chemicals in tne low oarts per billion ranges being reported. The presence of PCBs in tne environment m the U.S. was confirmed by 1970, but little was known aoout tneir potential impact. Because PCBs were reported in the environment and tests indicated tney couio accumulate in tne food chain, Monsanto voluntarily decided to terminate sales 03*3566 oo o WATER_PCB-SD0000063107 TRANSCRIPT OF PROCEEDINGS - IN THE SUPERIOR COURT OF THE STATE OF DELAWARE IN AND FOR NEW CASTLE COUNTY MONSANTO COMPANY, Plaintiff, v. AETNA CASUALTY & SURETY COMPANY, - al. , Defendants Civil Action Number 88C-JA-118-1-CV NON-ARBITRATION CASE KELLY DEPOSITION EXHIBITS PROTECTED MATERIAL: MONSANTO INSURANCE COVERAGE LITIGATION Washington, D. C. Thursday, February 4, 1993 ACE - FEDERAL REPORTERS, INC. Stenotype Reporters 1120 G Street, NW Washington, D.C. 20005 (202) 347-3700 NATIONWIDE COVERAGE 800-336-6646 WATER PCB-SD0000063108