Document kZv8Ew16Rqo0YxLNrQwg8y9J

PCB ENVIRONMENTAL POLLUTION ABATEMENT PLAN Introduction On 15 October the "AD HOC" Committee consisting of Messrs. M. Farrar, P. Hodges, E, John, W. Richard, and E. Wheeler issued a report summarizing the polychlorinated biphenyl (pcb) pollution problems from the known available information to date. Out of this report came considerable information, conclusions, and recommendations which we have attempted to tie together into a plan of action in this document. Our objective has been to take a reasonable and responsible approach to the entire problem. Before we get into the problem, we should 'clarify the meaning of PCB, the nature of the entire line, and how these tie into our produot line of Aroclors. PLAINTIFF'S | EXHIBIT I mi NEV 021436 729491 WATER PCB-00049709 -2 - Monsanto entered the Aroclor market in 1930 by acquiring Swa^n Electrical Company or known today as our Anniston/ Alabama plant. The first load of Aroclor which incidentally was Aroclor 1254 -- went out of Anniston, Alabama to GE in 1931: Since that time the market has grown to 170 to 200M*worldwide. Chemical' Biphenyl Monsanto Product Line Nature of Material at Ambient Solid >-5e-Md ate'SSuhlimes-- Monochlorobiphenyl ~ cl pos"tricKloroblphenyl Quaterchlorobiphenyl SOO" Pentachlorobiphenyl xxrd Hexachloroblphenyl HeptachloroViphenyl Aroclor 1221 Aroclor 1232 Aroclor 1242 Aroclor 1248 Aroclor 1254 Aroclor 1260 Aroclor 1262 thin liquid (oil) thin flush water oily type fluid material Thicker - transmission oil Heavy-Molasses Thick - tar Very thick - liquid <?r <! Aroclor 1268 Aroclor 12715 Solid Solid ' NEV 02H37 729492 WATER PCB-00049710 -3- .Total possibility are 210 theoretically; posgj^ ^chlorinated biphenyl6* ^gtowax or terphenyl Solid Aroolor 5**6o Solid Damage to the ecological system by conj^lnati^^ftrom polychlorinated biphenyl (PCB). III. Extensiveness . , The problem involves the entire United Jt$e*c Canada, and sections of Europe especially the United Kingdom anriSwede$tfciiAs the investigation broadens other areas of Europe, Asia angliLat&aj America will surely become involved. Evidence of oontamlnaon$h.jaye3 been shown 10 some of the very remote parts of the world. 4fi#9l3^pient could and most likely will follow the DDT investigations. IV. Nature of the Problem Professors Widmark and Jensen of the iQgtltutg oft Analytical Chemistry at Stockholm, Sweden, In November 19$manp.pgnpedi and confirmed findings! Q 0 PCB in fish, birds, and eggs. Subsequ$g|afladings :were made in 1967 in Great Britain. In February 1969# ProfesgRg f^feb^pjugh of the University of California published an article in t^foS,airancisco Chronicle relaying his findings of PCB in the en\j4sgmgnttif, the United States. Monsanto confirmed the presence of PCB'1969 and confirmed the adequacy of work by Widmark and Jensen^ au$eojbj^9rs; truly, the PCB's are a worldwide ecolologieal problem. NV ' Ql. 72949- NV 02143d 729493 WATER PCB-00049711 -4- Analysis indicates the environmental presence of the 5 and higher chlorinated biphenyls which take the appearance of Arocior 1254 and Aroolor 1260. We have strong indications that Arocior 1242 or at least part of it degrades biologically. Since the Arocior 1242 contains aroun 7 percent of the 5 chlorine biphenyl or higher we cannot rule out the possibility that the observations may be a concentration affect of the higher chlorinated biphenyls of Arocior 1242. Lue Conti' To date tmw have beetrno^reports of finding Arocior 1242 present in the environment (except owteiAe the effluent of our plants Arnn4er "jgJlO present -vc/ &4- $ The seriousness of the problem can best be spelled out as follows: 1. Pish - Marine or aquatic species concentrate PCB in the fatty tissue. Toxic is small quantities (down to 5 ppk) to sensitive marl) life suoh as shrimp. 2. Birds - predatory species feeding on the marine or aquatic life can further concentrate PCB to possible harmful effects. Specifically in birds PCB can affect the calcium metabolism leading to egg shell imperfections which prevents proper hatch of the young. In fact, Monsanto has confirmed the eggshell by feeding chickens, a high order of the species, PCB's in controlled tests, CP p4h 3. Man - There is no harmful effeot known to man or other mammals after MO 40 years of production. Investigations are underway by various O>zJ sources. 4. Political and Public Emotion - PCB's are falsely linked with DDT because PCB's show up in the analysis for DDT. PCB's are linked with other permanent type chlorinated hydrocarbon pesticides. This becomes particularly serious since about every article of food in the country is being examined for a trace of these materials. flUtP '' a* 57)pxJj S*L- -- jU' V 729494 WATER PCB-00049712 - 5- V, Effeot on Monsanto Business potential at stake on a worldwide basis: Fluids Plasticizers Total/Year 7<M lbs. lbs. io4M lbs. |16M % $6-OT q.p. >. |2-3H a.p. $22Vt $8-nM a.p. Already competition is using certain data against us in competitive situations. A. Legal Liability Direct lawsuits are possible. The materials are already present in . nature having done their "alleged damage". All customers using these products have not beei officially notified about known effects nor dc our labels carry this information. These are only a few of the possible legal implications whioh would best be covered by the legal department, B. Public Image . The corporate image of Monsanto as a responsible member of the business world genuinely concerned with the welfare of our environ ment will be adversely affected with increased publicity. The evidence proving the persistence of these compounds and their universal presence as residues in the environment is beyond questioning. This combined with certain scare publications is certai: to give an adverse image. Guilty ^association (with DDT) will pre vail as the background while actual facts may be sparse. ' C. Customer Relations NEV 021440 Some customers who presently use these materials will be "scared off" to other competitive products. Products associated with the same name or "trademark" will be adversely affected ie., Therminol, Pydraul and Aroclor. Competitors will use the information for-an - ____ __________- ... ` 729495 WATER PCB-00049713 -6 - , influence on Monsanto products. Customers w^.11 seek other "outs" rather than become involved. VI. Effect on Customers and Ultimate Consumers One of the unique features of PCB's is their fire resistance. Here the basic decision whether to risk lives due to fire or risk extinction of, some species of birds. In this case the PCB would probably be accepted as a necessary pollutant and tolerated under controller conditions. A. Electrical Industry - Capacitors and Transformers use Aroclor because it is the best inexpensive dielectric fluid available. B. Pood Processing - Bulk "deep frying" units for potato chips, fish, and doughnuts use the fire resistance fluid as an indirect heating medium. C. Die Caster -- and other hot metal working industries fire resistance fluids to protect the workers Affects a wide range of plastics and adhesives because the PCB serves as the plasticizer. A wide range of paints and coatings are affected. The "Carbonless" carbon paper used so widely would disappear. VII. Involvement With Other Producers Although Mpnsanto is most probably responsible for the U.S. contamination and Jointly responsible with MCL for the United Kingdom problem, we cannot aocept responsibility for the world. There are five known producers in the free world, several possible producers behind the iron curtain and couple of additional companies making overtures about entering the business. Monsanto representatives have on one occasion discussed this problem with a couple of these producers but they expressed no great concern. In fact, it is highly possible that one of NEV 021441 *............................ 729496 WATER PCB-00049714 these manufacturers is dumping his waste into the Rhine River, Certainl any action taken by one producer will most assuredly affect the other. It is entirely possible that a Joint plan of action could be developed but will most probably have to be spearheaded by Monsanto. It is also likely that producers of other chlorinated products used with PCB's will be dragged into the investigation, VIII, Souroes of Contamination Although there may be some soil and air contamination involved, by far the most oritical problem at present is water contamination. To our knowledge to date the contamination can be broken down into two general categories, open and indirect pollution, A. Open Pollution - Our manufacturing facilities sewered a sizeable quantity of PCB's in a years time. 1. Fluids Fluids are probably the most open source of pollution because of their mobility. They also may be the least serious because they are generally the lower chlorinated materials. 2. Electrical Electrical customers have in the past sewered their wastes. 3. Heat Transfer Heat transfer customers have sewered their objectionable and their spilled material. 4. Industrial These fluids have generally been sprayed into drains, washed down sewers and generally regarded as very harmless. i a "dedusting agent" which inadvertently found its way back to the stream. NEV 02L^ 729497 WATER PCB-00049715 -8- 5. Plastics . The plastics are not as mobile as the fluids so therefore they have not found and cannot find their way back to streams in open pollution. , Indirect . . Shipping containers and the cleaning thereof for subsequent use a source of contamination) 1. Fluids a. Electrical - Disposal of "burned out" transformer and capacitors may find its way back to streams. Scrap units (new) are generally disposed of in land fills but could possibly get back to the stream. b. Heat Transfer - Leaks could contaminate. c. Industrial - Cross product contamination carried out of an air compressor. Residual material carried on parts. 2. Plasticizers a. Process Contamination from Washing (1.) Environment Contamination Swimming pool paints Inoineration of wax coatings . Traffic paints (2.) Product Contamination Coating for tank lining lasting inks and paper coatings NEV 214**3 Certain adhesives IX. Recent Technical Changes Which Have Bearing on the Contamination A. Fluids '. The sources of pollution were pointed out as they have been in the past because we are dealing with that quantity of material in the 729498 WATER PCB-00049716 -9- environment today which was deposited over the past forty years. We jnne^must state that responsible people throughout the industry' have taken corrective action to reduce contamination in the last two years. There have also been technical advances which have brought about the use of lower chlorinated biphenyls which may be an advantage because to date the low ohlorinated ones have not been identified present in nature. 1. Electrical - The large customers have established collect systems anc the waste is recovered. Incinerators are being investigated and built for the disposal of the materials. There has been a shift . away from the higher chlorinated types products and could probably shift almost entirely away from those products. 2. Heat Transfer - System have been tightened up and redesigned to confine the contents Here^to^ the trend has been to shift away from the higher chlorinated materials. 3. Industrial ponds have been built by the large manufacturers to catch the material and decant off the PCS for reprocessing. The trend here as the other fluid areas has been towards the lower chlorinated materials. 4. Plants a The plants effluent has been passed through limestone which provides surface to ca,toh some of the material. But high concen trations can be found in our effluent (that is relative to those findings in nature causing the problem). B, Plasticizer Quite opposite to fluids the trend in plasticizer Aroclor has been to the higher chlorinated biphenyls, In plasticizers the lower chlorinated biphenyl will not be an acceptable solution however, the lower chlorinate terphenyl^could offer a possible solution. NEV 021444 729499 WATER PCB-00049717 - 10 - la Courses of Action . A. Do Nothing We cannot fleny the findings and the acquisitions by the various ' agencies. If we took no action we would likely face numerous suits. We would let government tolerances be based on public and political pressure along with any experimental or developed data which they may generate. We would most likely be forced out of this business. Other product areas would be adversely affected-r We would project an image as an irresponsible member of the business world. Project poor customer relations. The only advantage to this technique offers is it reduces the cost but this too must be weighed against potential loss of business. B. Discontinue Manufacture of All Polychlorinated Biphenyls (PCB) Although we all realize this could be an eventually unfortunately the solution is not this simple^ Assuming we did stop manufacture immediately, the pollutants are present in the environment, the liability is present and possibly by the shifting to the lower chlorinated materials and the recovery techniques the contamination may already be reduced to an acceptable level. Obviously the entire business would be lost without any or very few substitutes to be offered. Other product areas would be affected. Financial loss could be considered due to raw material contracts, customer contracts, and royalty -- secrecy contracts. Competition would take advantage on all fronts. We would be admitting guilt by our actions. Loss of capltol investment in the plant, associated utilities, and asse- elated processes. We would possibly gain a little public image on this action. wcv Q21445 N6V C. Respond responsibly, admitting that there is growing evidence of environmental contamination by the higher chlorinated biphenyls and take action as new data is generated to correct the problem. 729500 WATER PCB-00049718 11 This approach would enable us to phase out the higher chlorinated materials in many applications where they are no longer necessary or really desired. Wecoul'd maximize the corporate image by publicizing this aot. We would reduce a known pollutant. Additionally we could gain precious time needed to develop new products and investigate further the lower chlorinated materials. As new research data is generated our course may be altered considerably. Certain limited actions may reduce or limit the problem. NEV 021446 729501 WATER PCB-00049719 12 XI, Recommended course of Action ' Based on the information available today the only recommendation we can `I honestly make is respond responsibly admitting that there is growing evidence of environmental contamination by the higher chlorinated biphenyls and take action as new data is generated to correct the i problem, ., XII. Implementation of the Recommended Course of Action A. Immediate (By 12-1-69) 1, Set up a task force under a project manager or the equivalent responsible for initiating, directing and implementing all action that Monsanto decides to take. This includes sufficient budget necessary to cope with the immediate problems. This task force , should include representatives from Medical, Legal, Research . and the two involved Marketing Groups and Public Relations and must conduct liaison with MCL and other locations involved in the problem. 2, Decide on timing and content of any public and/or customer notifi cation of PCB problem. B. Interim (Within 3 months) Fluids Plasticizers 1. Confirm Aroolor 1254/Aroclor 1260 are found in the envi ronment. 1. Announce differential between fluids/plasticizer uses. 2. Publicize the difficult anal, 2. Announce safety of other PCB's/ tasks. chlorinated terphenyl, . 3. Protect other PCB/chl. terph. 3. Educate customers on control of effluent for all products. 4. Announce plans to reformulate 4. Initiate program to develop a/ certain Therminols and Pydrau{ 1254 & 1260 substitutes where control of the product is difficult. NEV 02m ? 729502 WATER PCB-00049720 13 - *. ` t 5. Emphasize better control over 5. Investigate with manufacturer other Aroclor 1254 & 1260 the feasibility of alternate uses. products. ' 6. Initiate customer education or 6-r--Analysts--1242 need for effluent control of all products, 7. Determini composition of all PCB's, Develop a comprehensive Program C. Short Term (within the next 12 months) 1, Research - Expand program for more meaningful biodegradation Medical studies and confirming analytical results. Expand toxicity studies. Follow developments concerning publicity and those developments covering political implications of PCB contamination, 2. Marketing - Discontinue or substitute replacement products for those applications of Aroclors 1254 and 1260 where the Aroclor remains mobile. , Work with customers to clean up plants on other Aroclors, Report the habitual violators or "do nothings" to the product group. Reclaim or safely dispose of fluids,' NV 021448 Consider renaming products that do not contain PCB. Follow and report market developments such as customer disposal systems. Follow and report any political or public feedback which may . affect the contamination problems and must be coordinated with Medical, Research and Legal. 3, Production - Clean up plants and stop gross contamination. 4. Legal - Define our present position, recommend reasonable action that will not unduely alarm the market but reduce the exposure in terms of liabilitv. flonrdi nate recommendations with Marketing 729503 WATER PCB-00049721 - 14 - 5. Public Relations - Publicize actions where believed advantageous. Certainly discussions should be held with other producers within same period to determine their planned course of action, if any. D. Long Range Tentative Outline (Prom 1 year to 3 years) Realiz% ing that the comprehensive program must be outlined the "Long Range Tentative Outline" is meant to serve as a guide: All aspects of this program should^eview*quarterly by Organic Management. 1. Research-Medical Continue biodegradation studies and analytical support Isomer distribution Toxicity and metabolism studies * Water soluble removal Incineration analytical support Confirmation analytical Contract aoademic research for reference Develop newand improved formulations 2. Manufacturing a. Process Research and Development (l.) Identification of typical Aroelor Isomers (2.) Develop control for effluent composition (3.) Test substitute formulations, etc. (4.) Develop new processes b. Clean Up Plants .. c. Modify processes to meet market needs . 3. Engineering a. Develop and set up on plant locations incineration systems b. Design new processing equipment as necessary 4. Marketing a. Specify alternates or changes NEV 021449 b. Customer liaison 729504 WATER PCB-00049722 15 - c. Set reclaim or disposal of fluids , d. Work on name association problems 5. Patent! Investigate trademarks registered Cover with patents any work felt patentable 6. Environmental Control Develop cheap disposal systems for customers a. Incineration or pyrolysis b. ' Biddegradation unit etc. c. Consultants in pollution control 7. Legal Investigate and define our position on Royalty secrecy agreements. Contracts - Raw Material and Customer 8. public Relations Portray to public positive actions at correcting the contamination problem. Release periodical statements covering our position. XIII. Probability of Success nev 0Zl`*30 729505 WATER PCB-00049723 - 16 - XIV. Cost of Program ' ' Neither the program nor the 'Costs have been clearly defined at this time i However# a cost estimate of $220#000 for toxicological, work alone has ,w 4s been presented. Tentative figures indicated under the worst conditions the entire program -could run as high as $2.0-2.5M. At this stage it is very difficult if not impossible to develop a reasonable cost figure but one point is clear it will be larger than the normal research budget can handle. For this reason, assuming the approach is acceptable# we shall be forced to ask for additional appropriations to fund the program. XV. Future _ . Follow developments on the problem as they unfold. . Develop an aggressive research program to confirm or deny findings and better understand the problem. Develop costs for the duplementation of the Recommended course of action. Develop speoifio actions with each department involved . Submit the actions with costs for approval Develop a timetable to solve the overall problem. Prepare for "precipitious pullout" or drastic legislative action althoug. we do not feel this Is a likely possibility. NV 02lit5L 729506 WATER PCB-00049724 ACTION DO NOTHING . DOLLARS PROFIT AND LIABILITY VS. TIME DISCONTINUE MANUFACTURE OF PCB ------------------- -------1---------- ------------- r------------------------1------------------- r~ 70 71 72 73 Time . . DOLLARS RESPONSIBLE immm-- DOLLARS 7o --j-----------------------------71 "i----------------- \-- 72 73 Time 71 NEV 021452 . 729507 70 71 Time ^ 72 73 7' WATER PCB-00049725 PROFITS $ PROBABILITY OP SUCCESS --s------------------- r TO 71 72 Time 73 74 75 NEV 021453 729508 WATER PCB-00049726 4? WATER PCB-00049727 f>fto&/te>\iirr ofsocces^. NtV O*1'**5 729510 WATER PCB-00049728 XIII. , Probability of Success a' . XIV. Cost of Program $220*000 and bio with max. at $2jO-25M XV. Future ., NEV 021^56 729511 WATER PCB-00049729