Document nmGZnVeqyqJ8x4g0GEZ9DwYD6

I REPORT TO THE MARCH MEETING OF THE BOARS OF DIRECTORS ON THE STATUS OF PCB IMPLEMENTATION PROGRAM The worldwide aotlon plan on PCBe la being fully Implemented on schsdule. 1) In the U. S. and Canada all PCB aalea have been terminated exoept thoae being made under hold harmless agreements. Domestic dielectric uaers representing in excess of 950 of PCB volume have signed hold hamless agreements and no sales will be made to remaining users unless and until they sign. 2) In all other world areas our program to restrict sales to dielectric uses only Is on schedule and sales for all other uses have been terminated. (Exceptions are German coal mining Industry and Russian State Purchasing authorities reported at the January Board Meeting.) As I reported to you last month. It has become apparent that other PCB manufacturers outside the U. S. will not require hold hamless documents from their customers, although It now appears they will restrict their sales to closed system uses. Our worldwide action on PCT phase out is on schedule. Contact with U. 3. Government agencies Indicate: 1) FDA Is proposing new PCB tolerance levels and restrictions on use 2) EPA Is monitoring PCB levels In surface waters and plaint effluents - may attempt forcing disclosure of our customer lists. HONS 04175 7 -2- 3) 03T - Inter-Agency report to issue within 30/60 days probably favorable to Monsanto recognizing appropriate ness of our program. 4) U.3./Canada International Joint Commission expected to issue paper commenting on PCBs/Wts and we are attempting to supply current data on our program. Silos - In the summer, 1970, two farmers sued Monsanto alleging PcB contamination of milk arising from silage stored In silos coated with a sealant containing PCBs. Since then, primarily since November 1971, three additional farmers have sued and two silo construction companies have claimed reimbursement for taking corrective action on several silos coated with such a sealant. Aggregate claims to date are approximately $lM. Since 1970 our approach has been to deal case by case with claims as they arose. Since the recent Increase In claims, we initiated a more detailed Investigation of the silo problems, and Into corrective action we might take. Scoping the problem Is difficult because of the absence of detailed records of the alio companies. Recent PDA action In proposing lower tolerance levels for PCBs In milk may accentuate the problem by Increasing the number of milk condemnation cases. We are attempting, as quickly as possible, to verify the facts and to make recommendations for what Monsanto's program should be toward existing and potential suits and olalms, and whether a warning or other action with respect to silo owners Is appropriate. HONS 041758