Document qag05ykqGmwMXk57zk0BvrOvn

1 IN THE COURT OF COMMON PLEAS 2 LAKE COUNTY, OHIO 3 RUTH N. BURNHEIMER, Plaintiff 4 VERSUS 5 CASE NUMBER 91CV001653 JUDGE PARKS 6 UNIROYAL CHEMICAL CO., INC ET AL, 7 Defendants 8 ********************* 9 The deposition of JOSEPH P. VARIANI, a witness 10 in this proceeding, was taken at the instance of the 11 Plaintiff herein, before and by Sharon S. Wendt, a 12 Certified Shorthand Reporter for the State of Louisiana 13 and a Registered Professional Reporter, at the offices 14 of Baton Rouge Court Reporters, located at 11832 15 Newcastle Drive, Suite 16, Baton Rouge, Louisiana, on 16 the 10th day of November, 1992, commencing at 8:44 a.m. 17 and ending at 11:07 a.m. 18 19 APPEARANCES: 20 PETER J. BRODHEAD, ESQ. ) For the Plaintiff Spangenberg, Shibley, Traci & ) 21 Lancione ) 1500 National City Bank Bldg. ) 22 Cleveland, Ohio 44114 ) 23 VICTORIA L. VANCE, ESQ. Arter & Hadden 24 1100 Huntington Building Cleveland, Ohio 44115 25 ) For the Defendants, ) Borden, Inc. and ) Monochem, Inc. ) Baton Rouge Court Reporters,, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001493 2 1 ANNE Y. KOESTER, ESQ. Bunda, Stutz & DeWitt 2 One SeaGate, Suite 650 Toledo, Ohio 43604 3 ) For the Defendant, ) Uniroyal Chemical ) Company, Inc. ) 4 5 INDEX 6 7 STIPULATION Page 4 8 EXAMINATION BY: 9 MR. BRODHEAD ..... ................................................................. 10 MS. VANCE.......................................................................................................... 11 12 CERTIFICATE.................................................................................................... 13 READ AND SIGN AFFIDAVIT................................................................. 5 78 81 82 14 15 16 Variani 1 17 Variani 2 18 19 Variani 3 20 Variani 4 21 Variani 5 22 Variani 6 23 Variani 7 LIST OF EXHIBITS Monochem Articles of Incorporation Geismar Industries Articles of Incorporation Diagram Giant Molecules Chemical Safety Data Sheet SD-56, 1954 Monochem Supervisors' Safety Manual Monochem Safety Handbook 24 Variani 8 Emergency seal cap assembly diagrams 25 Variani 9 Chemical Safety Data Sheet SD-56, 1972 Baton. Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToUFree Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001494 3 1 Variani 10 -- Monochem Safety Handbook 2 Variani 11 - MCA Chem Card 3 Variani 12 -- Letter from Mr. Harris to Mr. Gaffey dated 5-15-73 4 Variani 13 -- Intercompany and Office Correspondence 5 dated 5-8-73 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToUFree DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001495 4 1 STIPULATION 2 IT IS STIPULATED AND AGREED by and among 3 the parties in the proceeding above numbered and 4 entitled that the testimony of JOSEPH P. VARIANI, a 5 witness in this matter, shall be taken at the instance 6 of the Plaintiff herein, before and by Sharon S. Wendt, 7 a Certified Shorthand Reporter for the State of 8 Louisiana and a Registered Professional Reporter, on 9 the 10th day of November, 1992, at the offices of Baton 10 Rouge Court Reporters, located at 11832 Newcastle 11 Drive, Suite 16, Baton Rouge, Louisiana; that the 12 witness shall be sworn by said Court Reporter so 13 reporting; that the testimony shall be taken under oral 14 examination reserving the right to make objections, 15 except as to the form of the question and the 16 responsiveness of the answer, until the time of the 17 trial of this matter; that the reading and signing of 18 the deposition are not waived by the parties and by 19 the witness; and that the said deposition is being 20 taken for discovery purposes and for any and all 21 purposes authorized under the Ohio Rules of Civil 22 Procedure. 23 24 25 Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001496 5 1 MR. BRODHEAD: Let the record reflect 2 that this deposition is being taken, though 3 initially through a subpoena and notice, by 4 agreement of counsel as to time and that the 5 time for commencement was 8:30 a.m. as agreed 6 to with counsel for Monochem and as 7 communicated in my cover letter and my Brief in 8 Opposition to Borden's Motion for Summary 9 Judgment. The hour is now 8:44, and it was 10 agreed that we would commence an attempt to 11 state preliminary matters and then reassess the 12 situation if counsel for Uniroyal does not 13 appear. 14 * * * * * 15 JOSEPH P. VARIANI, after having first been duly 16 sworn, was examined and testified as follows: 17 EXAMINATION 18 BY MR. BRODHEAD: 19 Q Mr. Variani, would you state your full name and 20 address, please, sir. 21 A Joseph Peter Variani. I live at 10838 Lynell 22 Street in Baton Rouge, Louisiana. 23 Q Your age, sir? 24 A Fifty-four. 25 Q Can you tell me, beginning with high school, Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001497 6 1 2A 3 4 5 what yoUr education is? Sure. I attended St. Aloysius High School in New Orleans. Upon graduation I went to Tulane University in New Orleans where I received a B.S. degree in chemical engineering. I 6 7Q 8A 9 10 11 graduated in 1960. After that, what did you do, sir? I went to work for Dow Chemical in Plaquemine, Louisiana. In May of 1962, I went to work for Monochem, Incorporated. In July of 1969, I transferred to Borden, Incorporated. 12 Q 13 14 A 15 16 17 What was the reason for the transfer in July of *69? John Lynn, who had been the vice-president in charge of operations at Monochem, was transferred to a general manager position at Borden, and he had asked me to come join him. 18 MR. BRODHEAD; Off the record. 19 [Off the record discussion.] 20 BY MR. BRODHEAD: 21 Q You can resume your answer, sir. You were 22 talking about Mr. Lynn? 23 A Yeah. -- asked me to come to Borden to perform 24 the same type of work that I had been 25 performing at Monochem. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonvUle Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001498 1Q 2 3A 4 5Q 6A 7Q 8A 9 10 11 Q 12 A 13 Q 14 A 15 Q 16 A 17 18 Q 19 20 A 21 Q 22 A 23 Q 24 25 A 7 What was your job title then as you transferred to Borden? My job title when I was still a Monochem employee or -- Did it change? Yes. It went from what to what? At Monochem I was chief process engineer at the time, and when I joined Borden, my title became data processing supervisor. Where were you employed? In what city? Geismar, Louisiana. You worked at the Borden facility? Yes. What did they make there? At that time methanol, vinyl acetate, urea, ammonia, and acetic acid. Was that on the same property as Monochem, or was it adjacent property? Adjacent property. And you are presently employed by whom? Borden, Inc. You have been an employee of Borden since July of '69? My service date with Borden goes back to May of Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001499 1 2 3 4 5 6Q 7 8A gQ 10 ii A 12 Q 13 14 15 16 A 17 Q 18 19 A 20 Q 21 22 23 24 25 8 1962 when I first joined Monochem. When I transferred to Borden, I carried, with me, my years of service with Monochem. They were transferred over as years of service with Borden. Until July of *69, were your paychecks from Monochem? Yes. You received a subpoena to appear for your testimony? Yes, last night at six o'clock. Have you also been informed, by counsel for Monochem, that there were certain areas of testimony that were requested concerning Monochem? Has that been discussed with you? Yes. I'm showing you the Notice of Deposition, Mr. Variani. Have you seen it before? No. Just to try to expedite matters, on page two, there are five -- excuse me, on the bottom of page one and continuing on page two, it says, Monochem is requested to produce one or more of its employees, officers, agents or other persons within the employ of Monochem for some Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToUFree Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001500 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 A 22 23 24 Q 25 A 9 significant period between its creation and when it ceased to provide, sell, or supply VCM to the Uniroyal Painesville facility and who is most knowledgeable concerning the following: One, the formulation and content of the CSDS or its equivalent which was designed to accompany shipments of VCM from Monochem to Uniroyal, Borden or any other end user; two, the harmful effects vinyl chloride exposure on man and/or animal; three, the medical and scientific literature and data relating to subpart two above which was known and/or available to Monochem during the above-stated period; four, the VCM manufacturing process at Monochem; and five, the utilization by Monochem of employees of Uniroyal or its predecessors and/or Borden during the above-stated time period. My question to you, sir, is, which, if any, of the five items are you, in your judgment, competent to testify as to? First, I would like to correct my previous answer. After seeing this, I did see it. I did see this. Okay. I can speak to items four and five. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001501 1Q 2A 3Q 4 5 6 7A 8Q 9 10 11 12 13 A 14 15 16 17 Q 18 19 A 20 Q 21 22 23 A 24 25 10 Four and five? Yeah. All right. So would it be, as a corollary of that, fair to say that as to one to three, you do not consider yourself particularly knowledgeable? Yes. As you sit here today, what present orpast employees of Monochem, to the extent you may know, would be most knowledgeable concerning items one through three? And you can deal with them separately, of course, if you like. Well, items one through three would be the plant managers, the production managers, and the safety supervisors at Monochem at the various times. Plant managers, production managers; is that right? Yes, and safety supervisors. To the extent you can recall, Mr. Variani, going back to May of *62, who was the plant manager? The first plant manager was John V. Lynn, then W. J. Boyne -- that's B-o-y-n-e -- then J. R. Little, and the last was Tom Murray. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToU Free Donaldsonviile Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001502 1Q 2 3 4 5A 6 7 8 9 10 11 12 Q 13 A 14 15 Q 16 A 17 18 Q 19 A 20 21 Q 22 A 23 24 25 Q 11 As to those four individuals, could you go through them and tell me if you know whether or not they are alive and, if so, where they reside or were last known to reside? John Lynn retired some years ago from Borden, and last X knew he was living in the San Diego, California area. As to whether or not he is still living, I do not know. W. J. Boyne left Borden some years ago, and I don't know what his situation is now. I have not had contact with him for several years. Mr. Little? Jack Little is alive, retired, and living in Bay St. Louis, Mississippi. How many miles is that from here? That is about -- I guess about an hour, hour and a half drive from here. And Tom Murray? Tom Murray is retired, and he lives both in Montreal and Baton Rouge at various times. Production managers? The first production manager was Jack Little. The second was Dick Kogler, as I recall. The third was Sandy Harrod. Spell the last name, please. Baton Rouge Court Reporters, Inc, Certified Shorthand Reporters 1-800-375-7906 ToU. Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001503 1A 2 3 4 5 6 7Q 8A g 10 ii Q 12 13 14 A 15 Q 16 17 A 18 19 20 21 22 Q 23 24 25 A 12 H-a-r-r-o-d. The last was Tom Donahue, D-o-n-a-h-u-e. In-between Kogler and Harrod or thereabouts, there was a gentleman. His name was Toby Gerhart as I recall, but he was killed in an airplane crash shortly after he was employed, very shortly. Safety supervisors? Lavern Landry. I don't quite remember who was after him. I don't recall exactly who were the safety supervisors after Lavern. You filed -- or your counsel filed an affidavit that you executed with respect to these proceedings; is that correct? Yes. You were employed by Monochem, as a process engineer, from May of '62 until '67? Actually it was until January of '68. At that time, that was the date of my recollection; but I've since looked up the date, and it was in January of 168 my title changed to chief process engineer. All right. From May of '68 then until July of '69, I take it you were the chief process engineer. Yes. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001504 1Q 2 3A 4 5 6 7 8 9Q 10 11 A 12 Q 13 A 14 15 16 17 18 19 20 Q 21 22 23 24 A 25 Q 13 what is your knowledge as to how Monochem was formed? Borden and Uniroyalwere interested in producing vinyl chloride. Uniroyal had been producing vinyl chloride in Painesville, Ohio. Uniroyal wanted new facilities for producing vinyl chloride. Borden wanted to begin producing vinyl chloride. Let me stop you for a second. Do you know why Uniroyal wanted new facilities? No, I do not. Please go ahead. The quantities required by each party were not sufficient to justify, economically, facilities to be built individually. So each party -- so Monochem, Incorporated was formed, as a Louisiana corporation, to produce quantities for the exclusive benefits of Borden and Uniroyal. I'm showing you what's been marked Exhibit 1, and these will all have your name on it, sir. Those are the Articles of Incorporation for Monochem, are they not? Yes. Have you previously reviewed that document at Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001505 1 2A 3Q 4A 5 6Q 7 8 9A 10 11 12 13 Q 14 15 16 17 A 18 Q 19 A 20 Q 21 22 23 24 25 A 14 anytime? Generally, I have, yes. When? At various times through the years, and I looked through it again yesterday. Is some of your affidavit taken directly from the language of those Articles of Incorporation? My statements in my affidavit mayhave been based on my knowledge of this document, but I did not take anything word for word from here as I recall. Mr. Variani, I had previously asked you to take a look at the Articles of Incorporation of Geismar Industries. That's been marked as Exhibit 2, has it not? Yes. Are you familiar with that document? Yes. Prior to the commencement of this deposition this morning, I asked you to take a look at it. Can you tell me -- first of all, is it not correct that it was created in late -- excuse me -- in 1964? Yes. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001506 1Q 2 3A 4 5 6 7 8 9Q 10 11 12 13 14 15 16 A 17 Q 18 A 19 20 21 22 23 24 25 Q 15 What was the reason for the forming of Geismar Industries? Borden and Uniroyal decided that they needed additional quantities of the outputs that was being produced by Monochem, and the reason for Geismar Industries Corporation to be formed was to have the equipment to increase the quantities of output available for Monochem. Those Articles of Incorporation are slightly different in the stated purpose of the corporation in that it doesn't address production of monomer or any of its dispensing with any of its off-gases, but it does relate, specifically, to acquiring, selling, and leasing property. Yes. Am I on the right track? Yes. The corporation was formed. It acquired the facilities to produce the additional outputs. These facilities were leased to Borden and Uniroyal. Borden and Uniroyal and Monochem Corporation operate these Geismar Industries facilities in addition to the Monochem facilities. Werethese strictly for monomerproduction? Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonvUle Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001507 1A 2 3Q 4 5A 6Q 7A 8 9 10 11 12 13 14 15 16 17 18 Q 19 A 20 Q 21 A 22 23 24 25 16 No. It was a general expansion of the Monochem facilities. In addition to monomer production, what did Monochem do? All of Monochem's outputs? (Counsel nods head affirmatively.) Monochem produced vinyl chloride monomer; acetylene, which is one of the raw materials for the production of vinyl chloride monomer; oxygen, which is a raw material for the production of acetylene. Monochem also produced utilities, that is, steam, demineralized water, river water and cooling water for its own internal usage and to supply Borden and Uniroyal's private adjacent facilities with these utilities. Did Uniroyal have a private adjacent facility? Yes. What was it? It was a chemical producing facility alongside the Monochem facility -- property. There were -- also acetylene and acetylene off-gas was supplied to Borden's private adjacent facility for its use. So the purpose of Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonvtile Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001508 1 2 3 4 5 6Q 7 8 9 10 A 11 Q 12 A 13 14 15 16 17 18 19 20 Q 21 22 23 A 24 25 17 Monochem was -- and it was, at that time, to produce vinyl chloride monomer plus deliver to the owner's adjacent facilities whatever Monochem outputs that it needed to operate its private facilities. If I were to give you a piece of paper, could you roughly sketch me, at least in some relative way that I can understand, where these adjacent properties were? Sure. Why don't I just mark it Exhibit 3. (Witness draws diagram.) This is true north direction, and in this direction, for ease of discussions at the plant site, we call this plant north. I always talk in terms of directions when referring to the locations of everything. This is Louisiana Highway 73. This is the River Road. Here's the Mississippi River over here (Indicating). I-p-p-i. It always amazed me that Huckleberry Finn could spell Mississippi, but he couldn't spell Pennsylvania. Okay. Now, presently, this is Louisiana Highway 30. Originally, it wasn't designated as such, but that's the layout of the land. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviJUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001509 18 1 MS. VANCE: Can I just interrupt? 2 Are you going to draw -- Peter, do you want the 3 configuration and the relative locations as 4 they exist today or -- because there has been 5 some sizing of changes to Monochem over the 6 years. 7 BY MR. BRODHEAD: 8Q The best approximation between '61 and '75 that 9 you can, sir. 10 A Okay. 11 Q And add, on the side of it, original 12 13 A 14 Q 15 A 16 17 configuration if you would. Okay. (Witness complies.) This was Monochem. How many acres, roughly? I think about four hundred, something -- something like that. Monochem was around four hundred. Like Vickie has just mentioned, this 18 has changed quite a bit over the years, but 19 this is how the original layout of property 20 was. This property line is right here 21 (Indicating). 22 Q So these were contiguous properties? 23 A Yes. 24 Q What was the location of the property acquired 25 by virtue of Geismar Industries? Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001510 1A 2 3 4Q 5 6A 7 8 9Q 10 11 A 12 13 14 15 Q 16 17 18 19 20 21 A 22 Q 23 24 25 A 19 Geismar Industries consisted of equipment, machinery and equipment. It was installed on Monochem property. Was it an infusion of capital by any other term? Geismar Industries made -- acquired the loan for acquisition and installation of equipment if that answers your question. Why was it necessary to create an entity to the extent you may know, sir? I do not specifically know. That was done by Borden and Uniroyal. I cannot give you a specific answer as to why it was done in that fashion. Would it be fair to say that having been created in March of 1961, within about three years, it was apparent that the needs of Borden and Uniroyal were such that the monomer output of Monochem needed to be augmented? Is that correct? Yes. As a consequence of which, Geismar Industries was created as, shall we say, an entity to finance and implement the expansion? Yes. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001511 1Q 2 3A 4Q 5A 6Q 7 8A 9Q 10 A 11 12 Q 13 14 15 16 17 A 18 19 20 21 Q 22 A 23 Q 24 25 A 20 Subsequent to which, I believe, in around 1971, there was a merger -- Yes. -- of Geismar into Monochem. The two merged together. And the entity was known as Monochem thereafter? Yes. Were they known separately prior to that time? Yes. There were two separate books and records on each corporation. In what way did the Geismar Industries creation augment the production? Was it a separate soup to nuts creation of facilities, or did it augment certain portions of the Monochem facility? It augmented certain portions of theexisting facilities by adding additional equipment similar or identical to what already was in place on Monochem. Did Geismar have separateemployees? NO. Did Geismar Industries have its own checks for -- No. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToU Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001512 1Q 2A 3Q 4A 5Q 6A 7 8Q 9 10 11 A 12 Q 13 14 15 A 16 17 18 19 20 Q 21 22 23 24 A 25 Q 21 Its own bank? No. Did you receiveyourpaychecks from Monochem? Yes. What bank were they drawn on, generally? Louisiana National Bank in Baton Rouge as I recall. Let's talk about monomer production. Monochem was an acetylene based facility; is that correct? That's correct. Acetylene, as itrelates tomonomer production nationwide, accounts for only a tiny fraction of monomer production; isn't that correct? Yes. Well, I think. I'm not -- are you asking the percentage of vinyl chloride produced from acetylene now, as opposed to a total production, it is a small percentage? I don't know the number. I don't know the number. In any event, the process -- and correct me if my rough understanding is errant here, please. In order to make acetylene, you need natural gas? Yes. And you need oxygen? Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonvUle Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001513 1A 2Q 3A 4 5 6 7Q 8 9A 10 Q 11 A 12 Q 13 14 15 A 16 17 18 19 20 Q 21 A 22 23 Q 24 A 25 Q 22 Yes. You apparently supercool the oxygen? The oxygen is obtained from air. It's a cryogenic process in which air is compressed, cooled, liquefied, and separated into pure oxygen. That oxygen, once pure, is joined with a natural gas in a heated state, is it not? Yes. And that creates acetylene? Yes. That acetylene has to --that creation process is very water intensive to prevent flame-out and explosion, isn't it? Yes. Water is used, in the process, to extinguish the reaction, minimize the production of by-product, carbon, and the acetylene is transmitted in a water-saturated state. I'm sorry, the last portion? The acetylene is transmitted in pipe lines in a water-saturated condition. And it is introduced to hydrogen chloride? Yes. In the presence of a catalyst in the form of Baton Rouge Court Reporterst Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonvtile Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001514 1 2A 3Q 4 5A 6 7Q 8A 9Q 10 11 12 A 13 14 15 Q 16 A 17 18 19 20 21 22 23 Q 24 A 25 Q 23 mercuric chloride? Yes, embedded on carbon. And that, basically, will interproduce the creation of the monomer? The acetylene and anhydrous hydrogen chloride chemically react to produce vinyl chloride. This is an outdoor facility? Yes. This vinyl chloride is only to besent to one of two places, right? It's either going to go to Painesville, right? Borden and Uniroyal directed the shipments of vinyl chloride to whatever location they designated. Where did you send Uniroyal'svinylchloride? That was directed by Uniroyal. I don't know. The monomer was loaded into rail cars provided by Uniroyal. Uniroyal controlled the shipment of its monomers. One location was Painesville, Ohio or any other place that Uniroyal may have designated. I do not have knowledge of the shipping locations for Uniroyal. Other than Painesville? Other than Painesville. How about Borden? Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001515 1A 2 3 4 5Q 6A 7 8 9 10 11 12 13 Q 14 15 16 17 A 18 Q 19 20 A 21 Q 22 A 23 24 25 24 Borden shipped vinyl chloride to Leominster, Massachusetts and possibly other locations. But once again, I do not have knowledge of the Borden shipping locations. Illiopolis, Illinois? Illiopolis, Illinois has a polyvinyl chloride production facility, and monomer was shipped there. I do not know when the Illiopolis facilities were constructed. I answered that question in the time frame *62 to early seventies, so I do not know when Illiopolis was started. I'm showing you what's been marked as Exhibit 4. It's an excerpt from a book called Giant Molecules. Beginning on page 180, that is the Monochem facility, is it not? (Witness reviews document.) Can we agree thus far it appears to be some pictures of the Monochem facility? Some pictures of Monochem'sfacility. And some description of what it does? Yes. MS. VANCE: The only caveat, the pictures are a little dark. We've never seen this before. We will accept the representation Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001516 25 1 of the editorial comments around the pictures 2 that these are, presumably, taken of Monochem. 3 BY MR. BRODHEAD: 4Q Mr. Variani, I tried to go through the monomer 5 production process only to speed it up. Did I 6 7A 8Q 9A 10 Q 11 12 A 13 Q 14 leave out anything important, sir? No. Would you turn to page 183? (Witness complies.) The reactors for vinyl chloride are outdoors as well, correct? Yes. And there are six of them shown in this picture. Were there more during the time 15 16 A 17 period? Additional reactors were added with the Geismar Industries expansion. 18 Q Up to how many did you go? 19 A I don't recall. 20 Q More than ten? 21 A Well, I think it doubled the existing capacity. 22 Q What was the capacity of one of these reactors? 23 A The original plant was rated at 136 million 24 pounds per year; and if there were originally 25 six reactors, the capacity would be one sixth Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonvMe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001517 1 2Q 3A 4Q 5 6 7 8A 9Q 10 A 11 Q 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A 26 of 136 million, whatever that comes out to be. About twenty-two point something? Something like that, yeah. After it is, that is, the monomer is created in the reactors, there is, apparently, a purification process in towers; is that correct? Yes. And that's shown on page 184? It appears to be, yes. On page 185, entitled "A Change from Gas to Liquid," it says, "Monochem's part in the making of Naugahyde ends when the gaseous vinyl chloride monomer is purified and compressed into liquid form for shipment. Each year the plant consumes about 25 billion cubic feet of natural gas and 90,000 tons of hydrogen chloride to make more than 250 million pounds of monomer. It also sells carbon monoxide and hydrogen for the manufacture of formaldehyde, widely used as a preservative and as a monomer for other synthetics." Up to that point, sir, is there anything incorrect about that that you're able to say today? Let me see the date of this article first. Baton Rouge Court Reporters, Inc, Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001518 1Q 2A 3Q 4 5 6 7A 8Q 9A 10 11 Q 12 13 14 15 16 17 18 19 A 20 Q 21 A 22 Q 23 A 24 Q 25 A 27 It'S 1966. Generally, that statement is correct, yes. The next sentence, sir, is apparently in error, as I understand it, in that it says that all of it goes to United States Rubber when, in fact, some of it goes to Borden. Is that correct? Where are you reading? (Counsel indicates to witness.) (Witness reviews document.) That sentence is not correct. Let's set that one aside then. The next one says, "Pumped into oversized railroad tank cars, each with a capacity of 20,000 gallons, the monomer is transported 850 miles to the Painesville, Ohio plant where it is unloaded into spherical tanks to await the next step: polymerization." Anything that you know to be incorrect about that, sir? No. The railroad cars were 20,000 gallons? As I recall. Did Monochem own any railroad cars? No. Did Borden? I don't think so. I think all of Borden's cars Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToU Free DonaMsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001519 1 2Q 3A 4 5 6Q 7 8A 9Q 10 A 11 12 Q 13 A 14 15 16 17 18 19 20 21 Q 22 23 24 A 25 Q 28 were leased. What about Uniroyal? The same. I think they were leased, but they could've been owned, but I have no specific knowledge of that. What was the rail line provider? Who provided those services? Illinois-Central. Whose cars were they ifyou know,sir? The owners of the cars if they were leased you mean? Yes, sir. There would've been carsdesignated ACFX followed by a numerical number. The ACFX stands for the manufacturer, which I believe was American something and something, okay, and cars with a prefix of GATX and UTLX and so on and so on. There are a number of rail car manufacturers. The prefix before the number on a rail car designates the rail car owner. Do you have some idea how long it took a shipment of VCM to get up to Painesville from Geismar? Not specific information. With what frequency did you send rail cars out? Baton Rouge Court Reporters, Inc, Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001520 1A 2Q 3A 4 5 6Q 7A 8Q 9 10 A 11 12 Q 13 A 14 Q 15 A 16 Q 17 18 A 19 Q 20 21 A 22 Q 23 24 25 A 29 Daily, Monday through Friday. How many daily? That varied depending upon the amount or the number of cars that were delivered to the plant for loading by the respective owners. You had a spur line into Monochem? Yes. How many cars could you load simultaneously at Monochem during this time period? I don*t recall a specific number. It would be a guess. More than two? Yes. More than four? Yes. I would say around six. Okay. Might that six correlate to the six reaction vessels? No. Because that is held in a different reservoir after purification, correct? Vinyl chloride is stored in spheres. Vinyl chloride should not be stored for a prolonged period of time, generally speaking; is that correct? Yes. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonvtile Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001521 1Q 2 3A 4Q 5A 6Q 7 8A 9Q 10 A 11 Q 12 A 13 14 15 16 17 18 Q 19 20 21 A 22 Q 23 24 25 A 30 There are some dangers associated. It could begin to polymerize itself -- Yes. -- in part? What are some other dangers? I don't know of any other dangers. But that's the concern, that it doesn't begin to polymerize? Yes. Because that would affect end user purity? Yes. Did the cars come back empty from Painesville? They came back slightly pressurized with vinyl chloride gas. There may have been occasions when a car returned with some liquid vinyl chloride in it but, generally, a car was returned containing only vinyl chloride vapor slightly pressurized. Would it be a fair statement, Mr. Variani, that the same cars, generally, stayed in circulation between Geismar and Painesville? Yes. And the circuit would be to take it up full and load it off and return it empty or nearly empty and repeat that process? Yes. I want to add now that those cars -- the Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001522 1 2 3 4 5 6Q 7 8 9 10 11 12 A 13 Q 14 A 15 Q 16 17 18 19 20 21 22 A 23 Q 24 25 31 scheduling of the cars to be loaded and shipped was done individually by the owners, so my answer to you that generally they would recycle is just based on the general impressions and information. Do you have some idea how many cars would stay in circulation at the same time? Let's talk about when you first started there in May of 62. Roughly, how many cars would Uniroyal have leased to be making this continuous round trip? I do not recall. More than fifty? I would guess around fifty. Let's go back to your affidavit for a minute. In July 1969, you transferred from Monochem to Borden in Geismar but continued to consult with Monochem regarding the administration of the Borden-Uniroyal Operating Agreement. I take it you were, at this time, receiving Borden paychecks. Yes. Thus, you say, youcontinued to have general familiarity with the operations of Monochem from '69 to 76. Baton Rouge Court Reporters, Inc. Certified, Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonvitle Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001523 1A 2Q 3 4A 5 6 7 8 9 10 11 12 13 Q 14 15 A 16 17 18 Q 19 A 20 21 22 23 24 25 32 Yes. The by-products of the acetylene production are hydrogen and carbon monoxide? The by-product is a gaseous mixture which is called acetylene off-gas. Sometimes it's abbreviated as simply AOG. The composition of the AOG was roughly sixty percent hydrogen, twenty-five percent carbon monoxide, four or five percent methane, some nitrogen and other minor impurities. The product was not classified as hydrogen or carbon monoxide. It is known as acetylene off-gas. You will have to attribute my ignorance to the way it's described in here. Sure. When I read that statement about the formaldehyde, I had to think to see what they were leading up to. What did you do with the AOG? The AOG was used by Borden, in its private adjacent facility, to produce methanol. Later Borden also used part of that AOG to produce pure carbon monoxide and pure hydrogen. The pure carbon monoxide was used in acetic acid manufacturing. Any unused AOG was burned, in Monochem boilers, as a fuel. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToU. Free DonaldsonviJUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001524 33 1Q 2 3 4A 5 6 7 8 9 10 Q 11 12 13 A 14 15 Q 16 17 18 A 19 20 . 21 22 23 Q 24 A 25 Q Generally speaking, was there a sharing, from time to time, of Borden and Uniroyal employees as it pertained to the Monochem enterprise? Yes. The plant manager and his staff were a combination of Borden and Uniroyal employees. I suspect, always thought, that their paychecks continued to come from their respective organizations and not Monochem, but I cannot tell you that for a fact. Do you know whether or not the monomer produced previously in Painesville, before Monochem, was an acetylene based process? Presumably so because the Uniroyal know-how was used for the Monochem process. Is it your understanding that this was a fifty-fifty enterprise, that is, that it was half Borden and half Uniroyal? Originally, the vinyl chloride facilities were owned fifty-fifty. All of the Monochem individual facilities were owned in different percentages. For example, the acetylene plant was something like sixty percent-forty percent. Owing to individual needs? Yes, depending upon individual needs. You state, in your affidavit, further, that as Baton Rouge Court Reporters9 Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonviile Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001525 34 1 process engineer and chief process engineer for 2 Monochem, your job was to administer the 3 Operating Agreement between Uniroyal and Borden 4 and, specifically, I supervise the proper 5 allocation of each company's entitlement to the 6 vinyl chloride process by Monochem, Inc. Was 7 there a discreet document known as the 8 9A Operating Agreement? Yes. 10 [Off the record discussion.} 11 BY MR. BRODHEAD: 12 Q Can you describe for me the essence of the 13 Operating Agreement, what was its purpose and 14 how was it implemented? 15 A The Operating Agreement described how the 16 Monochem facilities were to be allocated -- 17 were to be operated, how the outputs were to be 18 allocated to the individual owners, and how the 19 cost of operations were to be allocated to the 20 individual owners. 21 Q How were the cost of operations allocated? 22 A Monochem performed -- Monochem Corporation 23 performed conversion services for the exclusive 24 benefit of Borden and Uniroyal. Borden and 25 Uniroyal, under separate contracts, supplied Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToU Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001526 35 1 2 3Q 4 the raw materials and fuel to the Monochem facility. Let me interrupt you for one moment, sir. Do you know why a separate entity was created for 5 this purpose? 6 MS. VANCE: You're referring to 7 Monochem? 8 MR. BRODHEAD: Yeah. 9A For the economies of scale. 10 BY MR. BRODHEAD: 11 Q 12 Please continue. THE WITNESS: What was my last 13 statement, please? 14 MS. VANCE: Can you also just 15 indicate -- what was the question that led up 16 to that? In other words, did you say to the 17 best of his knowledge, why was a separate 18 entity created? Obviously, he's been talking 19 and testifying up to that -- 20 MR. BRODHEAD: That's fine. And I 21 think he said it previously anyway. 22 MS. VANCE: Okay. I think so, too. 23 I just want to make sure. He didn't draw up 24 these agreements. 25 MR. BRODHEAD: I understand. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001527 36 1 (The witness's last response was read back by 2 the reporter beginning on Page 33, Line 23.) 3A Monochem converted these raw materials and 4 fuels into finished products incurring some 5 expenses to do so. Borden and Uniroyal 6 reimbursed Monochem Corporation for these 7 expenses. 8 Monochem did not sell any of its 9 outputs to its owners. Monochem did not earn 10 any profits. Monochem Corporation was a 11 nonprofit operation performing -- 12 BY MR. BRODHEAD: 13 Q Excuse me. 14 A Yeah. 15 Q So we don't getinto legaltechnicalities here 16 and the specifics of Louisiana law, which you 17 may or may not be familiar with, there is a 18 distinction between whether or not something is 19 a nonprofit corporation and whether or not it 20 draws a profit. I just want to make sure that 21 we don't confuse the two for the purpose of 22 your answer. I've interrupted. Please 23 continue. 24 A I state that because in the contracts, in the 25 agreements, it says it shall be a nonprofit Baton Rouge Court Reporters, Inc. Certified Shorthand Reporter* 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001528 1 2Q 3A 4Q 5 6A 7 8Q 9 10 11 12 A 13 Q 14 A 15 Q 16 A 17 Q 18 19 A 20 21 22 Q 23 A 24 Q 25 37 operation. Is this in the Operating Agreement? Yes, and in the basic agreements. It's not in the Articles of Incorporation so far as I can see, Mr. Variani. Well, reading that in detail again, I cannot say whether it is or it isn't. But it's your testimony that in the Operating Agreement and/or in other related documents, it is stated that Monochem is not to recognize a profit, is that it? Yes. Go ahead, please, or are you done? I'm done answering that question. Have you ever been to the Painesville plant? No. Any of your employees, management people periodically get up there? Initially, some Monochem employees may have gone to Painesville for training purposes, but I was not one of them. Do you know who did? Not specifically, no. Mr. Variani, I infer, from what I have read in Exhibits 1 and 2, when it becomes the 31st of Baton Rouge Court Reporters9 Inc. Certified Shorthand Reporters 1-800-375-7906 ToU Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001529 1 2 3 4 5A 6Q 7 8 9 10 11 A 12 Q 13 14 A 15 16 17 18 19 20 Q 21 22 23 24 A 25 38 December of a given year, if Monochem has any balance on its books, it is distributed back to the shareholder corporations. If you know, do I correctly make that assumption? What type of balance are you referring to? Well, you told me, previously, that Monochem is reimbursed by Borden and Uniroyal, which tends to suggest that Monochem, A, has to be capitalized somehow and, B, has to have initial expenditures for which it is reimbursed. That is done monthly. Can you briefly explain that for me? Is Monochem given an allotment of cash monthly? Back then Monochem, as I recall, was provided with working capital. Monochem accumulated its costs, which consisted of variable and fixed costs, and each month Monochem would invoice Borden and Uniroyal for their respective shares of those accumulated costs. Was the infusion of capital, at least for the purposes of ongoing operation, day-to-day operations, as a consequence of those invoices being paid? We're getting into an area in which I do not work as far as the financial area. Baton Rouge Court Reporters9 Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001530 1Q 2A 3 4 5 6 7 8 9Q 10 11 A 12 13 Q 14 A 15 16 Q 17 A 18 Q 19 20 A 21 22 Q 23 24 25 A 39 I understand. The financial area -- and I cannot answer, with any specific knowledge, of exactly how money was infused into Monochem because that was handled by the Comptroller Department. I answer your questions based on my general knowledge and impressions, but financial was not my specific area in which I worked. Who would've been in charge, when you started there, of the comptrollers? The Comptroller's name, at that time was Elmer Carroll, but he's deceased. Who was his successor or successors? John Thudium, T-h-u-d-i-u-m; Wayne Winters; and Conrad Picou. P-i-c-h-u? P-i-c-o-u. I should have known better. When did you first have any experience with vinyl chloride? When I joined Monochem in July 1969, I'm sorry. May of '62. When did you first have any familiarity with the ManufacturingChemists' Association or the MCA? I guess in the early part of my career, I Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001531 1 2 3Q 4 5A 6Q 7 8 9A 10 11 12 Q 13 A 14 15 Q 16 17 A 18 Q 19 A 20 21 Q 22 23 A 24 25 40 became aware of the MCA. I do not know of any specific date. Did you ever have any association, personally, with that organization? No. To your knowledge and to the best you can recall, what Monochem employees did have a professional association with MCA? I do not know specifically, but if you're asking me to guess, I would say the plant manager. Who would that be? Jack Little? One of the plant managers, yeah, well, all of the plant managers. Okay. John Lynn, W. J. Boyne, J. R. Little, and Tom Murray? Yes. Anyone else? Perhaps the production managers. You're asking who had associations with the -- Yes, sir, in other words, corresponded with, attended meetings, received bulletins. X would say if anyone, it would've been the production managers and the plant managers and, perhaps, the technical manager. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001532 1Q 2 3 4 5A 6Q 7 8A g 10 ii Q 12 13 14 A 15 Q 16 A 17 Q 18 A 19 Q 20 21 A 22 Q 23 A 24 Q 25 41 X1 iq showing you what's been marked Exhibit 5. That is the Chemical Safety Data Sheet, CSDS hereafter, for vinyl chloride, dated 1954; is that correct? Yes. When did you first see that document, Mr. Variani? I don't recall. I'm sure I have seen this at some point in time, but I don't recall any specific dates. I'm showing you what's been marked Exhibit 6. That is a Monochem, Inc. Supervisor Safety Manual; is that correct? Yes. And it's dated April 18th, 1962? Yes. When did you first see that document, sir? Most probably shortly after I joined Monochem. You joined Monochem in a matter of days after that document was effective? In May of '62. Within a matter ofdays? Yes. How early on did you become familiar with that document, sir? Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001533 1A 2Q 3A 4 5Q 6 7 8A 9Q 10 11 A 12 Q 13 14 15 16 17 18 A 19 20 21 Q 22 23 A 24 Q 25 42 I don't recall. Was it provided to you fairly early on? I don't recall if I had a personal copy of this. I'm showing you what's been marked Exhibit 7. This is a May 22nd, 1964 Monochem Safety Handbook; is that correct? Yes. Was that provided to you shortly after its implementation? It may have. I don't specifically recall. With respect to Exhibit 6 and 7 and knowing the time frame when they were implemented, who would've been chiefly responsible for the formulation of these documents? I notice, for example, that J. V. Lynn's signature is the preamble of both of them. Generally, it is the responsibility of the Safety Department to put together these type of documents. And in that period of time, I guess you would be talking about Mr. Landry. Yes. And we will ask him about those principally. I may have some for you additionally. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporter* 1-800-375-7906 ToU Free Donaldsonvitte Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001534 1A 2Q 3 4 5 6 7 8A 9Q 10 A 11 Q 12 13 14 A 15 Q 16 A 17 Q 18 19 A 20 21 Q 22 A 23 Q 24 A 25 43 Okay. I'm showing you what's been marked Exhibit 8. This document appears to be a photocopy of a portion of a blueprint or a drawing having to do with an emergency seal cap for Midland safety valves on rail tank cars; is that correct? That is what the title block reads. To that extent, I've correctly identified it? Yes. Why would Monochem be in the business of blueprinting an emergency seal cap for Midland safety valves on rail tank cars? I do not know. That's in December of '69? Yes. Who is FJC who purports to be the drawer of that document? Frank J. Cagnolatti, C-a-g-n-o-l-a-t-t-i, who was a draftsman at Monochem. Was he employed by Monochem? No. Who was he employed by? I don't know.He left the organization years ago. I don'tknow what he is doing now. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001535 1Q 2 3 4A 5Q 6 7 8A 9Q 10 11 12 A 13 Q 14 15 16 17 A 18 Q 19 A 20 21 22 Q 23 24 25 44 On the last page of Exhibit 8, it says emergency closure for A.C.F. rail tank car relief valve; is that correct? Yes. And it is noted, quote, This valve exists on both Uniroyal and Borden cars SHPX, UTLX, and ACFX. Is that correct? Yes. Apparently, those acronyms towards the end there would be the designations youpreviously referred to for ownership. Yes. Same question: Why would -- if you know, why would Monochem be in the business of designing and blueprinting an emergency closure for A.C.F. rail tank car relief valve? I do not know. Doesthis come asnews to you? Yes. If I had seen thatbefore, I don't recall. But, yes, I do not know why that is on a Monochem drawing. Let me put it another way, Mr. Variani. If I had asked you -- that's assuming neither of us knew about this document, and I just asked you would it be your understanding that Monochem Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToU Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001536 45 1 would be in the business of doing such a thing, 2 would you be disinclined to say yes? 3A Yes. I would not have said that I thought 4 5Q Monochem would have drawn that. Let's look at Exhibit 6 for a minute. 6 Actually, I've got my own copy. 7 MR. BRODHEAD: Off the record. 8 [Off the record discussion.] 9 BY MR. BRODHEAD: 10 Q Mr. Variani, I take it that you had nothing to 11 do with the formulation of the Supervisors' 12 Safety Manual. 13 A Yes, that's correct. 14 Q On page 15 of the document, it says, under 15 Vinyl Chloride, quote, Aside from the risk of 16 fire and explosion, vinyl chloride presents no 17 other very serious problem in general handling. 18 A Where are we reading? 19 MS. VANCE: On page 10 up here 20 (Indicating). 21 BY MR. BRODHEAD: 22 Q Are we on the same page now? 23 A Yes. 24 Q ''The presently accepted maximum allowable 25 concentration is 500 parts per million. In Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001537 1 2 3 4 5 6 7 8 9 10 11 A 12 Q 13 14 15 A 16 17 Q 18 19 20 21 A 22 Q 23 24 25 46 concentrations well above 500 parts per million, vinyl chloride acts as a mild general anesthetic. In contact with the skin, vinyl chloride is irritating. Prolonged contact will result in refrigeration and freezing. Vinyl chloride is not a serious industrial hazard provided precautions are taken to avoid leaks or spills which might provide a fire or explosion hazard." I've read that correctly, have I not, sir? Yes. Do you know whether or notthe areas that I just read were taken directly from the 1954 vinyl chloride CSDS? No, I do not without reading both documents and comparing them. I could take the time and do that. I'm going to represent to you, sir, so far as I know, that they were for the purpose of any questions, okay? Okay. You're free to dispute that if youwant, and the records will show that. Was the level of vinyl chloride monitored to the extent it could detect 500 parts per million when you began Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001538 1 2A 3Q 4 5A 6Q 7A 8 9Q 10 A 11 Q 12 13 A 14 Q 15 A 16 Q 17 18 19 20 A 21 Q 22 A 23 Q 24 A 25 47 there in May of *62? I do not recall. When, if at all, did Monochem first begin to monitor VCM levels? I do not know. Did they ever? Eventually they did. It's required by regulations. Federal regulations? Yes. Do you know when the 500 parts per million TLV was first suggested? No, I do not. Do you know what a TLV is? Yes. in Exhibit 5, the 1954 CSDS, they talk about the presently accepted upper limit of safety as a health hazard is 500 parts per million, correct? Yes. Now, your plant was anoutdoor plant,right? Right. Painesville was an indoor plant? As I understand. I have notpersonally visited Painesville, so I cannot say for a fact, but my Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001539 1 2 3Q 4 5A 6 7Q 8A 9 10 Q 11 12 A 13 14 Q 15 A 16 Q 17 18 A 19 Q 20 21 22 23 A 24 Q 25 48 understanding is that it is an enclosed facility. How about Illiopolis, Illinois? Is that indoor or outdoor? I think it would be indoor because it's in the same region as Painesville, but I have not -- You mean up north? Up north. But once again, I have not visited Illiopolis either. Leominster, Massachusetts? Same answer probably, right? That was indoor, and I have visited the Leominster plant on one occasion. Yours is a monomer manufacturing plant, right? Yes. Painesville, Illiopolis and Leominster are all polymerization plants, correct? Yes. Now -- yes, sir, at that time. Okay. Would you agree with me, Mr. Variani, to the extent you may know, that, generally speaking, the highest VCM exposure levels occur during the polymerization process? I do not know that. Would you agree with me that there is a greater potential for ambient VCM levels in an indoor Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToUFree Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001540 1 2A 3 4Q 5 6 7A 8 9Q 10 11 A 12 13 14 15 16 17 Q 18 19 20 A 21 Q 22 A 23 Q 24 25 A 49 facility than in an outdoor facility? Most probably, but I do not know for a fact that could occur. So far as Monochem's industrial hygiene or industrial toxicology, did you have anybody that did that for you? There were no such individuals on Monochem's staff. Did that kind of expertise come laterally to Monochem from either Borden or Uniroyal? I would suspect so, but that is an area I did not work in. That was handled by the -- from the safety end, but, once again, based on my general knowledge and impressions of the operations, I would suspect that that information flowed in that direction. Would that comport with the kind of economy of scale concept which was the basis for Monochem in the first place? Yes. Did you ever hear of a Dr. Jack Wolfsi? X don't recall thename. Did you ever hear of an industrial toxicologist by the name of W. D. Harris? No. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001541 1Q 2A 3Q 4A 5Q 6 7 8A 9Q 10 11 12 A 13 Q 14 15 A 16 17 18 19 Q 20 A 21 Q 22 23 24 25 50 Did you ever hear of J. Dexter Forbes, M.D.? No. Did you ever hear ofMr.Derringer? No. Did Monochem ever getvisited by doctors, toxicologists, or industrial hygienists on behalf of Borden or Uniroyal if you know? I do not recall. I do not know. It says, on page 15 of the employee section of this safety manual, that vinyl chloride is not a serious industrial hazard, correct? That's what it says, yes. Let me ask you, is it a serious industrial hazard? I go by what is written here because this was put together by people who are most knowledgeable in the handling of vinyl chloride. So you would defer to them? I defer to them. Okay. So there was, apparently, a basic agreement by which Uniroyal and Borden operated Monochem, and then there was an attendant Operating Agreement. Do I correctly infer that from your affidavit? Baton Rouge Court Reporters^ Inc. Certified Shorthand Reporters 1-800-375-7906 ToU Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001542 1A 2 3 4 5 6Q 7A 8Q 9 10 A 11 12 Q 13 A 14 15 16 17 Q 18 19 20 21 A 22 Q 23 A 24 Q 25 51 Yes. It was a basic -- it was a basic agreement with a number of appendices, one of which was in the form of an Operating Agreement. The formal Operating Agreement was a separately signed document. They were executed by the same people? Yes. Which were the chief officers of the respective shareholder owners, correct? Correct, authorized people from each company to sign those documents. Who are the officers and directors of Monochem? It varied from time to time, but they consisted of Borden and Uniroyal employees. The basic agreement specifies who the original directors and officers are. Right. For example, on Exhibit 1, on page AI-9, that shows the initial directors, and it appears that half are Borden people and half are Uniroyal people. Is that correct? Yes. And was that generally the case? Yes. That is specified in theagreements. In other words, the names may have changed, but they still had a shared Board of Directors? Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001543 1A 2 3Q 4 5 6 7 8 9 10 A 11 12 13 14 15 16 Q 17 18 19 A 20 Q 21 22 A 23 Q 24 25 A 52 Yes, equal number of directors from each company. You say, in your affidavit, that Monochem was also governed by a two-person executive committee comprised of one Borden and one Uniroyal appointee. The executive committee held a position of superiority and control over Monochem. What was the purpose of that twoperson executive committee? The executive committee represented the Board of Directors in-between meetings of the Board of Directors. The vice-president in charge of operation of Monochem reported to the executive committee. The executive committee was governed -- oversaw operations of Monochem. These executives were liaisons to the separate companies, weren't they, conduits for information? Yes. You use the term, in quotes in your affidavit, in paragraph eight, "know-how." Yes. That is actually a term of art from the Technical Service Agreement? Yes. That is common terminology in licensing Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToUFree Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001544 1 2 3Q 4 5 6A 7 8 9 10 11 12 13 Q 14 15 A 16 Q 17 18 A 19 20 Q 21 22 23 A 24 25 53 or obtaining information on various chemical processes. Was there any patent or trademark associated with Monochem specifically as it related to monomer production? Monochem -- to my knowledge, Monochem did not acquire any patents in vinyl chloride. It, at one time, acquired a patent in the acetylene process for an improvement to the acetylene process, but there were no patents that I can recall obtained by Monochem for vinyl chloride process. Do you know who was the chief contributor to the acetylene conversion patent? It was the production and technical staff. Does the name ring a bell? Usually on patents they are shown as assignors to a corporation. I don't know whose name appears on the patent. I don't recall. When the rail cars went out, what was the accompanying documentation on them when it left the Monochem premises? I do not know specifically because the scheduling of the cars to be delivered to Monochem for loading and pickup of the cars was Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonvitle Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001545 54 1 done by Uniroyal and Borden individually; so, 2 generally, whenever a car is loaded, there is a 3 bill of lading for that car that goes to the 4 railroad, but whatever documentation was sent 5 along with the cars, I do not know. 6Q The bill of lading is an interstate commerce 7 requirement, is it not? 8A Yes. 9 MR. BRODHEAD: I'm going to get into 10 a new set of -- off the record. 11 [A short recess was taken.] 12 BY MR. BRODHEAD: 13 Q Mr. Variani, before we took our break, we were 14 talking about, among other things, 15 documentation that accompanied the rail cars 16 out. I believe you stated that, to your 17 knowledge, other than the bill of lading, you 18 had no specific familiarity. Is that correct? 19 A 20 Yes. On the rail cars that left the Geismar site to their designations, I do not know 21 exactly what accompanied those cars. 22 Q The raw materials for the production of vinyl 23 chloride were piped in natural gas to Monochem, 24 correct? 25 A Natural gas was, yes, piped in to Monochem. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToUFree Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001546 1Q 2 3A 4Q 5A 6Q 7A 8 gQ 10 A ii Q 12 A 13 14 Q 15 A 16 17 18 Q 19 A 20 21 22 23 24 25 55 And you took the air right out of the good old Louisiana sunshine, right? Yes. What else did you need? Anhydrous hydrogen chloride. Where did you get that? That was piped into the facilities from various suppliers. Locally? Locally, yes. What else did you need? Mercuric chloride? Catalysts for -- are you asking specifically for the vinyl chloride process? Yes, sir. The vinyl chloride process required raw materials of acetylene and anhydrous hydrogen chloride. In addition to that -- The acetylene was based from the natural gas? Acetylene was based from the natural gas. Natural gas and oxygen were not used directly in the vinyl chloride process. The two raw materials were vinyl chloride or acetylene and anhydrous hydrogen chloride. In addition to that, various utilities are used: electricity, steam, cooling water, clarified water. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001547 1 2 3 4Q 5 6A 7Q 8 9 10 A 11 12 13 14 15 16 17 18 19 20 21 22 Q 23 24 A 25 Q 56 nitrogen, some production materials such as sulfuric acid, and back, then caustic soda was also used. With respect to each of those items, to the extent it involved having to pay for them -- Yes. In other words, if it's not air and if didn't come from the Mississippi River, was Monochem the vendee of those items? Except for the natural gas and the anhydrous HCl. The electricity was purchased by Monochem from Gulf States Utilities Company. The steam and the various types of water -- cooling water and clarified water -- were pumped by Monochem -- was produced from water pumped by Monochem from the Mississippi River. Production materials such as sulfuric acid, boiler treating chemicals, cooling water treating chemicals, those were purchased by Monochem as part of the conversion services performed by Monochem. This product that Monochem made, specifically the VCM, what is its intended use? For polymerization into polyvinyl chloride. That's its only use, isn't it, so far as where Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaMsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001548 1 2A 3 4 5 6 7 8Q 9 10 11 12 13 A 14 Q 15 A 16 Q 17 18 19 A 20 Q 21 22 A 23 24 25 57 you people send it? Yes. I don't know, but Borden may have made some copolymers, in other words, take two different materials and polymerize them together; but let me say that the intended use of vinyl chloride monomer was for use in the production of polymers. This monomer that was made by Monochem and shipped -- let's talk about painesville -- was shipped up to Painesville, it was specifically known by Monochem that it was would be polymerized at the Painesville plant, correct? Yes. As a chemist -- you are a chemist, aren't you? Chemical engineer. You have -- and as an employee of Monochem, you have some familiarity with what polymerization entails, do you not? I know what a polymer is. What is necessary inorder for polymerization to occur? The polymer is mixed with a catalyst to start the polymerization, and then a chemical is added to stop the polymerization at a designated point in the process. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001549 1Q 2 3A 4Q 5A 6 7 8Q 9 10 11 A 12 13 Q 14 15 16 A 17 Q 18 19 20 21 22 23 A 24 Q 25 58 The polymerization, that can be suspension or emulsion polymerization, correct? Yes. They did both at Uniroyal, did they not? I have no knowledge of the Uniroyal operations at Painesville other than they received vinyl chloride monomer and polymerized it. How much -- talking about when you began there in May of '62, how many cars a week, roughly, would head up to Painesville? I do not know. If you're asking me to guess, three, four, five a day for five days a week. Okay. If it's five, it's a hundred thousand a day, so that's 500 thousand pounds a week roughly speaking? Roughly, yeah. Referring back to Exhibit 4, at page 189, it says that 100 million pounds of PVC, that is, polymerized vinyl chloride, are produced at Painesville each year. As of 1966, when that was written, do you have any basis upon which to dispute that? No. At any time prior to the federal standards, that is, after January '74 when OSHA came in Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001550 1 2 3 4 5 6 7 8A 9 10 11 Q 12 13 A 14 Q 15 16 17 18 19 20 21 22 23 24 25 59 and implemented some rather strict regulations, at any time between when you began in May of *62 and that juncture in time, did you ever participate in any discussion, meeting, reading, or preparation of any document that had to do with the health hazards of vinyl chloride? Not that I recall, and that would*ve been *62 until '69 in my case. My answer applies to the 1 62 --'69 period. Referring to Exhibit 5, on page 6 of that document, sir, under 3.2.2, it says -- I'm sorry, say that again? 3.2.2? Okay. It says The MCA recommends the following, in addition to, or in combination with, any label warnings or other statements required by statutes, regulations or ordinances, and there is a label below. It says. Vinyl Chloride, Danger, Extremely Flammable. Keep away from heat, sparks, and open flame. Keep container closed. Use with adequate ventilation. Avoid prolonged breathing of vapor. What, if anything, to your knowledge, did Monochem send on, to Borden or Uniroyal, in terms of warnings, either this specifically or Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001551 1 2 3A 4 5 6 7 8Q 9A 10 Q 11 12 13 A 14 Q 15 A 16 Q 17 18 19 20 A 21 Q 22 23 24 25 60 like it, generally, as to the shipments that went out of the Monocheia plant in Geismar? Any warnings placed on the rail cars would*ve been done by the Production Department and, specifically, the people who load the vinyl chloride cars, so I cannot tell you exactly what they put on it. I don't recall. Should I talk to Mr. Landry about that? Yes. Are you familiar, generally, with the technology of monitoring parts per million of certain chemicals in the air? Now I am. Back then I was not. When were you first familiar, sir? Late seventies, early eighties. On the immediate inside page of Exhibit 5, it says, quote. It has a mild anesthetic action in concentrations above 500 parts per million and its vapors are irritating to the eyes. I'm sorry, what page are we on, please? (Counsel indicates). My question to you, Mr. Variani, is, would it be a safe statement that with respect to the reference to 500 parts per million in this 1954 document, which is Exhibit 5, that at Monochem, those levels, to the Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonvttle Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001552 61 1 extent 500 parts per million was a standard, 2 was not monitored so far as you know? 3A 4 5 Was not monitored? I cannot answer that. will have to direct that question to the production managers and to Mr. Landry. You 6Q 7 Did Monochem have any regular periodic meetings, with Uniroyal or Borden, concerning 8 the adverse health effects of vinyl chloride? 9A I do not know. That was not in my area. 10 Q You have never attended a meeting of the MCA? 11 A No. 12 MR. BRODHEAD: Off the record. 13 [Off the record discussion.] 14 BY MR. BRODHEAD: 15 Q 16 I'm showing you what's been marked Exhibit 9, Mr. Variani. This is a CSDS sheet for vinyl 17 chloride from the MCA, revised 1972; is that 18 correct? 19 A Yes. 20 Q When were you first familiar with that 21 document? 22 A I do not recall. 23 Q Did youreview it preparatory to your testimony 24 today? 25 A Did I review this? I did not read it in Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonvitte Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001553 1 2Q 3 4 5A 6Q 7A 8 9Q 10 11 12 13 14 15 16 17 18 A 19 20 21 22 23 24 25 62 detail. I leafed through it. Okay. I'm showing you what's been marked Exhibit 10. It is the Monochem Safety Handbook dated August 1, 1974? is that correct? Yes. Are you familiar with that document? No. I had left Monochem in July of *69, so I would not have seen this document. On page 15 of that document, Mr. Variani, in contradiction to what had been said in one of the earlier Monochem safety handbooks, it says, "Vinyl chloride is to be considered a serious industrial hazard." My question to you is, when, if at all, if you know, did the position on Monochem1 s part, as to whether or not vinyl chloride was a serious industrial hazard, take place? I do not know. MS. VANCE: Let me just begin -- preliminarily object to the introductory comment about in contradiction. That carries with it a little bit of implication about, perhaps, Monochem*s change of knowledge or intent, and I don't want it to be interpreted that way. Baton Rouge Court Reporters, /nc. Certified Shorthand Reporters 1-800-375-7906 ToUFree DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001554 63 1 MR. BRODHEAD: Well, I'm going to go 2 back then to the exhibit and point it out 3 because I took the time to do that previously. 4 MS. VANCE: The words will say what 5 they are, but to characterize them as 6 contradiction suggests that we were in error at 7 one point or another or that it might carry 8 with it some implication about our state of 9 knowledge or intent or conduct, and I don't -- 10 it's that reference to which I object. I know 11 that the language does change. The documents 12 will speak for themselves in that respect. 13 BY MR. BRODHEAD: 14 Q So that the record is clear, Mr. Variani, on 15 Exhibit 7, on page 20 -- and Exhibit 7 is 16 Monochem's safety handbook; in this particular 17 instance, May 22nd of '64 -- it does say, 18 "Vinyl chloride is not a serious industrial 19 hazard provided precautions are taken to avoid 20 leaks or spills which might provide a fire or 21 22 A explosion hazard." Have I read that correctly? Yes. 23 Q Now, I had asked you a question. Did you 24 understand the question, or would you like me 25 to rephrase it? Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToUFree DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001555 1A 2 3 4Q 5 6A 7 8Q 9 10 A 11 Q 12 A 13 Q 14 15 A 16 17 18 Q 19 20 A 21 Q 22 A 23 Q 24 25 A 64 You asked when did Monochem change to consider vinyl chloride as a serious industrial hazard, and my answer is I do not know. I'm showing you what's been marked Exhibit 11. Can you identify that? It's entitled MCA Chem Card Transportation Emergency Guide for Vinyl Chloride. When were you first familiar with that document? I don't know if I have seen this before or not. Do you know what it is intended to accompany? No, I do not without reading it. Why don't you take a minute and take a look at it. (Witness reviews document.) It implies to me what to do should an emergency occur while vinyl chloride is being transported. Okay. But you're not familiar with how it is used, if at all, by Monochem? That's correct. I'm not familiar. That's a 1965August document? Yes. Do you know whether or not this was co-referenced in the CSDS? I do not, no. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToUFree DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001556 1Q 2 3A 4Q 5A 6Q 7A 8Q 9A 10 Q 11 12 13 14 A 15 Q 16 17 A 18 19 Q 20 A 21 Q 22 23 24 25 A 65 When did Mr. Kogler begin with Monochem to your knowledge? 1969. Who was his predecessor? Jack Little. Do you know Benton Leach? No. Have you ever spoken with him? No. Did the expansion of Geismar Industries or that was provided by Geismar Industries provide the necessary augmentation of the VCM production facilities? Yes. Was it necessary to augment production again at any later time? I thinkso by making various improvements to the process. But there was no new corporation formed? No. Who,in your judgment, would be most knowledgeable as to why Geismar Industries was formed for the purpose of augmenting Monochem's production? In my judgment, it would be the legal staffs of Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToilFree Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001557 66 1 Borden and Uniroyal and the Monochem Board of 2 Directors at that time. 3 MR. BRODHEAD: Okay. I think I'm 4 just about done. Why don't we take a break for 5 a couple of minutes. 6 MS. VANCE: Okay. 7 [A short recess was taken.] 8 BY MR. BRODHEAD: 9Q Did you ever participate in any epidemiological 10 study or help to gather data concerning the 11 harmful effects of vinyl chloride? 12 A No. 13 Q Do you know what acroosteolysis is? 14 A No. 15 Q Raynaud's disease or phenomenon? 16 A No. 17 Q Do you have, as you sit here today, any 18 familiarity with the results of animal studies 19 concerning vinyl chloride exposure? 20 A Results ofstudies, no. 21 Q Do you have any familiarity, generally, about 22 the toxicity of vinyl chloride to humans? 23 A No. 24 Q Do youknow anything about vinyl chloride in 25 the disturbances of liver function? Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToU. Free DonaldsonviMe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001558 67 1A 2 3 4Q 5A 6Q 7A 8Q 9 10 11 12 13 14 A 15 16 17 18 My understanding is that vinyl chloride has been designated as can cause cancer suspect agent for liver diseases. What kind of liver diseases? I've heard the term angiosarcoma. Do you know what that is? No, other than it's a disease of the liver. Mr. Variani, referring to Exhibit 9, on page 6 under Health Hazard, it says, "Exposure to high levels may produce some lung irritation. Chronic overexposure may produce liver injury." Is that correct? MS. VANCE: Is what correct? That's what it reads. MS. VANCE: Thank you. MR. BRODHEAD: Yeah. He is not going to let me get away with that. He is going to check on me, right? 19 BY MR. BRODHEAD: 20 Q What does that mean to you, Mr. Variani: 21 "Chronic overexposure may produce liver 22 injury"? 23 A Just what it says. If you're exposed to vinyl 24 chloride over -- with frequency over a period 25 of time, it could cause liver problems. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001559 1Q 2 3A 4 5 6 7Q 8A 9Q 10 11 12 13 14 15 16 17 18 19 20 A 21 Q 22 23 A 24 25 68 What does the term overexposure mean to you? Can you quantify that in any way? As mentioned there, they must have defined what is the exposure limits that should be incurred; and if those limits are exceeded, that could be classified as overexposure as defined -In the document? -- in the document. In the same document, Mr. Variani, on page 7 under 4.4.3, it says, "Vinyl chloride vapor concentrations in air near or within the explosive range are most easily determined by the use of a standard combustible gas indicator. The concentration of vapor may be read directly on the meter which is usually graduated in percent of the lower flammable limit. The above should not be used for the detection of health hazards." I've read that correctly, have I not, sir? Yes. Did Monochem utilize a standard combustible gas indicator to detect the explosive range? Most probably. As to whether or not it -- I do not know whether or not it was used for health monitoring, but it's standard practice, in a Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001560 1 2 3 4 5 6 7Q 8 gA 10 Q ii A 12 Q 13 A 14 Q 15 16 17 18 19 20 21 22 23 24 25 A 69 chemical facility, that you check -- before you do any work on a vessel and so forth, you check to be sure that there is not an explosive mixture in the vessel or surrounding the vessel, and this is done with the type of explosion meter that is described there. What I need to know is, did Monochem use these kind of meters? I assume so. While you worked for Monochem? I assume so. You have no specific knowledge? I have no specific knowledge. Under 4.4.4 on the following page, that is, page 8, it says, "A specially calibrated indicator is commercially available for vinyl chloride monomer determination within the toxic range. Ampules which change color on exposure to VCM vapors are also commercially available and may be employed for the detection of low level concentrations." My question to you, sir, is, do you have any knowledge of the existence of such an ampule which changes color on exposure? Let me see how it's worded, please. Not of the Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonvUle Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001561 1 2Q 3 4A 5 6 7 8Q 9 10 11 12 13 14 15 16 17 18 19 20 21 22 A 23 24 25 Q 70 ampule, no. You ever heard of it before we just discussed this today? No. I assume when they say ampule, they mean ampule containing a liquid of some sort. I don't know what the definition of ampule is, so X can't -- I'll say I don't know. Mr. Variani, on page 17 of Exhibit 9, under 10.1.1, paragraph three, it states, "Recent research studies reported from Italy indicate that repeated, long-term high level exposure of rats to vinyl chloride monomer vapor can result in the development of malignant tumors. However, many years of industrial experience with human exposures to concentrations frequently far above current standards have not demonstrated any carcinogenicity to humans." My question to you, sir, is, where, on God's green earth, is the data which would suggest that statement if you know? Do you know where that is? I do not know. You're asking particular to this last sentence that says have not demonstrated any carcinogenic effect to humans? Yes. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToUFree Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001562 71 1A 2 I do not know where the data is or on what basis that statement was made. 3Q If you were -- well, first of all, have you 4 ever read that statement before? 5A No. 6Q If you were a vinyl chloride worker, would that 7 be reassuring to you? 8 MS. VANCE: Objection. 9 BY MR. BRODHEAD: 10 Q You can answer. 11 A Would that be objectionable to me? 12 Q No, reassuring to you. 13 A Reassuring to me? 14 MS. VANCE: As of now? As of 1972? 15 As of 1974? 16 MR. BRODHEAD: It's either true or 17 it's untrue. 18 MS. VANCE: Well, reassuring with 19 what present state of knowledge? I object to 20 the form of the question. 21 BY MR. BRODHEAD: 22 Q You may answer, Mr. Variani. 23 A I guess it would be assuring, yes; assuring to 24 me, yes. 25 Q Did you have any participation, whatever, in Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToUFree Donaldsonvtile Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001563 72 1 the preparation of this document? I think you 2 told me you did not. Is that correct? 3A That's correct. 4Q Okay. And I think you told me, as far as 5 Monochem employees would be concerned, that 6 would be Mr. Little, possibly, Mr. -- 7 MR. BRODHEAD: We have already 8 established he had nothing to do with the 9 preparation of that document. 10 MS. VANCE: It's from the MCA. Of 11 course he didn't. 12 MR. BRODHEAD: Right. 13 BY MR. BRODHEAD: 14 Q You told me previously that there were some 15 representatives from Monochem that participated 16 in the MCA; is that correct? 17 A I said if there were some representatives, if 18 ' Monochem were a member of the MCA, the people 19 representing Monochem would most probably have 20 been the plant manager, the production manager, 21 or the technical manager. 22 Q Okay. And I can take that up with others since 23 it's not in your field. Fair enough. I was 24 asking you previously -- one more question 25 about this document. Back to Exhibit 9, on Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001564 1 2 3 4 5 6 7 8A 9Q 10 11 12 13 A 14 Q 15 16 17 A 18 Q 19 20 21 A 22 Q 23 24 A 25 Q 73 page 11, under 7.2.2.1, and I quote. The Manufacturing Chemists* -- MCA -- recommends that all the containers of VCM should bear a label as shown. The text is designed for the product as shipped for industrial use. And then there is a recommended label on the bottom half of the page, is there not, sir? Yes. I believe I know your answer to this one, but I want to make perfectly sure. Do you know whether or not Monochem shipped, for industrial use, its containers withthat label on it? I do not know. Okay. Getting back tosomemedical conditions, I already asked you about acroosteolysis, and you said you never heard of it, right? Yes. How about lung changes associated with vinyl chloride exposure? Have you ever heard of that? No. How about changes in blood levels, hematologic changes? No. You already told me you had no knowledge of Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001565 74 1 2A 3Q 4 5A 6Q 7 8A 9Q 10 A 11 12 Q 13 14 15 16 17 18 animal studies, right? Yes. How about a brain cancer called glioblastoma multiforme? Did you ever hear of that? No. Did you ever hear of it suggested to be associated with vinyl chloride exposure? No. How about lung cancer? Same question. No. The only medical term I've ever heard associated with vinyl chloride is angiosarcoma. Mr. Variani, to your knowledge, did Monochem, after OSHA came in and reduced levels 500 fold in 1974, did Monochem ever undertake to do any post marketing warnings about what was now known about vinyl chloride? MS. VANCE: Objection to post marketing. 19 A Would you define post marketing? 20 BY MR. BRODHEAD: 21 Q In other words, after it supplied it, after it 22 shipped it, after the fact, what it learned 23 after the fact. 24 MS. VANCE: Supplied to whom? 25 Anybody? Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonvttle Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001566 75 1 MR. BRODHEAD: Well, they only 2 supplied it to two places so far as his 3 testimony is concerned. 4A No, no. Monochem wouldn't have done that to my 5 knowledge. 6 BY MR. BRODHEAD: 7Q Yes, sir. Do you know a William J. Boyne? You 8 mentioned him previously, didn't you? gA Yes. 10 Q And what about Gordon Anderson? Do you know ii him? 12 A Yes. 13 Q I'm showing you what's been marked Exhibit 12, 14 Mr. Variani. This is a multiple page 15 document -- the first page is dated 5/15/73 -- 16 from Dr. Harris to Dr. Gaffey at 17 Tabershaw-Cooper, correct? 18 A Yes. * 19 Q 20 Attached to it are multiple pages, two of which have to do with the MCA VCM epidemiology study; 21 is that correct? 22 A Yes. 23 Q Followed by which, apparently, is a list of 24 employees of Monochem; is that correct? 25 A Yes. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001567 1Q 2 3A 4Q 5 6A 7Q 8 9 10 A 11 Q 12 A 13 14 15 Q 16 17 A 18 19 20 21 Q 22 23 24 25 76 Just glancing through it, do you recognize a number of those names? Any of these names? Yes, sir. I don't want to Know which ones you recognize but just generally. I recognize a couple of them I saw, yeah. So far as you know, that is, in fact, a list of Monochem employees as of that time or who had VCM exposure? Yes. These are Monochem employees. Some are no longer employed? Some are no longer employed. There is a column here labeled Total Vinyl Exposure, so I assume, from that, these were exposed. I just wanted to make sure that this list is what it purports to be. Who is H. L. Schmidt? He was a Borden employee stationed at Borden's administrative headquarters. Henry had various levels of responsibility at Borden. X think one of which may have been in the safety area. I'm showing you what's been marked Exhibit 13, Mr. Variani. It is a May 8th, 1973 interoffice -- excuse me -- intercompany and office correspondence, on Borden's stationery, to Messrs. Peed, Little, and Bevis from Mr. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001568 77 1 Schmidt that we just referred to; is that 2 correct? 3A 4Q Yes. There is one page attached which also shows the 5 6A MCA VCM epidemiology study, correct? Yes. 7 MS. VANCE: It makes reference to 8 that study. It's not, obviously, the study 9 itself. 10 BY MR. BRODHEAD: 11 Q And it shows Tabershaw-Cooper Associates 12 13 A contact for subject study Jack Little? Yes. 14 Q Why, ifyou know, sir, was Mr. Little 15 designated so far as the epidemiology issue was 16 concerned? 17 A I do not know. 18 Q okay. 19 MR. BRODHEAD: Off the record. 20 [Off the record discussion.] 21 MR. BRODHEAD: I think that's all I 22 have, Mr. Variani. Thank you very much. I 23 appreciate you coming in. 24 MS. KOESTER: I don't have any 25 questions. Thank you for your time, Mr. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toil Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001569 78 1 Variani. 2 MS. VANCE: Mr. Variani, I do want to 3 ask just a couple of clarifying questions since 4 we're down here. 5 MR. BRODHEAD: Show my objection to 6 your inquiry. Go ahead. 7 EXAMINATION 8 BY MS. VANCE: 9Q As far as you know, did Monochem, Inc. always 10 function as a corporation in the course of its 11 business in Geismar, Louisiana? 12 A Yes. 13 Q To your knowledge, did that corporation ever 14 dissolve or, by any other means, terminate its 15 continuity during the time that it was in the 16 business of preparing VCM for shipment to 17 Uniroyal? 18 A No. 19 Q To yourknowledge -- and I think as we 20 discussed here today -- did Monochem, Inc., 21 while it was acting in the form of a 22 corporation, maintain a Board of Directors? 23 A Yes. 24 Q Did ithave Articles ofIncorporation? 25 A Yes. Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001570 1Q 2A 3Q 4A 5Q 6 7A 8Q 9A 10 Q 11 12 A 13 14 15 16 Q 17 18 19 A 20 Q 21 22 23 A 24 25 79 Did it have shareholders? Yes. Did it have officers of the corporation? Yes. And did it maintain separate sets of corporate books and records? Yes. Did Monochem, Inc. ever own anyassets? Yes. What was the nature of the assets as owned by Monochem as far as you know? For theproduction ofvinyl chloride monomer, acetylene, oxygen, and utilities for the exclusive benefit of its owners, of its shareholders. As far as you know, were any of those production assets ever owned by Borden and/or Uniroyal? No. . As far as you know, did Monochem exercise any degree of control over the operation of Uniroyal's Painesville polymerization plant? It did not. MS. VANCE: I have nothing further. Thank you. If we're through, he will not waive Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToU Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001571 80 1 signature pursuant to the Rules of Civil 2 Procedure in Ohio depositions. 3 MR. BRODHEAD: Nothing further right 4 now. Thank you. 5 6 WITNESS EXCUSED AT 11:07 A.M. 7 *************** 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1 `800-375-7906 Toll Free Donaldsonville Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001572 81 1 STATE OF LOUISIANA 2 PARISH OF EAST BATON ROUGE 3 I, SHARON S. WENDT, a Certified Shorthand 4 Reporter and a Registered Professional Reporter, do 5 hereby certify that the foregoing is a true and 6 correct transcript of the deposition of JOSEPH P. 7 VARIANI given under oath in the preceding matter on the 8 10th day of November, 1992, as taken by me in 9 Stenographic machine shorthand, complemented with 10 magnetic tape recording, and thereafter reduced to 11 transcript using Computer-Aided Transcription. 12 I further certify that I am not an 13 attorney or counsel for any of the parties; that I 14 am neither related to nor employed by any attorney 15 or counsel connected with this action; and that I 16 have no financial interest in the outcome of this 17 action. 18 Baton Rouge, Louisiana, this 12th day of 19 November, 1992. 20 21 22 snniwit >?. n&iiui , von, nrn 23 24 25 Baton Rouge Court Reporters, Inc. Certified Shorthand Reporters 1-800-375-7906 ToU Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001573 82 1 STATE OF LOUISIANA 2 PARISH OF EAST BATON ROUGE 3 BEFORE ME, the undersigned Notary Public, 4 within and for the Parish of East Baton Rouge, 5 Louisiana, personally came and appeared, JOSEPH P. 6 VARIANI, who, after having been first duly sworn, did 7 depose and say: 8 THAT he is the witness named in the foregoing 9 deposition; that he has read or has had read to him the 10 preceding 80 pages of transcribed matter, and that the 11 same constitute a true and correct transcription of the 12 testimony given by him in this matter on the 10th of 13 November, 1992, except for the following corrections, 14 if any: 15 PAGE LINE DESCRIPTION 16 17 18 19 20 21 Joseph P. Variani 22 SWORN TO AND SUBSCRIBED before me. Notary, 23 this _______ day of , 1992, in Baton Rouge, Louisiana. 24 25 NOTARY PUBLIC Baton Rouge Court Reporters, Inc, Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001574 RUTH M. BURNHEIMER V. UNIROYAL CHEMICAL CO., INC., et al. Case No. 91CV001653 Deposition Of RICHARD D. K06LER Taken on November 10, 1992 PAGE LJNE i f !'i _ / /'r c* zy Lo / /$ /' /C rt / CORRECTION " |i ^ f ~ >-cxj*'U<s isiys xft-f-o-j P / .y.'-cJ i^ rf jLzy / " ,f \ " h ** / ' ,J t l'/' , r *, . /J * ,f i , si ^ JLoCj^xSLs^*1 , . . t> V'jLJUU^OdX ft /^z/ j i'xy J8 l *>u-^- ,'' // ' i?ru ^ ' ~ (J RICHARD D. KOGLER(/y Subscribed and sworn to before me this Z3 1992. day of VLV:7162 NOTARY PUBLIC ______________ UNIR0001575 1 IN THE COURT OF COMMON PLEAS 2 LAKE COUNTY, OHIO 3 RUTH N. BURNHEIMER, Plaintiff 4 VERSUS 5 CASE NUMBER 91CV001653 JUDGE PARKS 6 UNIROYAL CHEMICAL CO., INC. ET AL, 7 Defendants 8 ********* ********** ** 9 EXHIBITS to the deposition of JOSEPH P. 10 VARIANI, taken before and by Sharon S. Wendt, a 11 Certified Shorthand Reporter for the State of Louisiana 12 and a Registered Professional Reporter, at the offices 13 of Baton Rouge Court Reporters, on the 10th day of 14 November, 1992, commencing at 8:44 a.m. and ending at 15 11:07 a.m. 16 17 APPEARANCES: 18 PETER J. BRODHEAD, ESQ. ) For the Plaintiff Spangenberg, Shibiey, Traci & ) 19 Lancione ) 1500 National city Bank Bldg. ) 20 Cleveland, Ohio 44114 ) 21 VICTORIA L. VANCE, ESQ. Arter & Hadden 22 1100 Huntington Building Cleveland, Ohio 44115 23 ANNE Y. KOESTER, ESQ. 24 Bunda, Stutz & DeWitt One SeaGate, Suite 650 25 Toledo, Ohio 43604 ) For the Defendants, ) Borden, Inc. and ) Monochem, Inc. ) ) For the Defendant, ) Uniroyal Chemical ) Company, Inc. ) Baton Rouge Court Reporters, Inc Certified Shorthand Reporters 1-800-375-7906 Toll Free DonaldsonviUe Court Reporters Lafayette Court Reporters Orleans Court Reporters UNIR0001576