Document vy9rBYbnwpVrMngqOYxrBN2r9

c REPORT TO THE JANUARY MEETING CF THE BOARD OF DIRECTORS ON THE STATUS C? PCB IMPLEMENTATION PROGRAM /. The worldwide PCB action plan reviewed with the Beard in December / is being fully implemented. Although customer acceptance has, in ' general, been positive, some are raising questions which may creat problems. We remain hopeful we can resolve these problems on a case by case basis. We are on our established time schedule. The status report on the domestic program is as follows: 1) Formal letter of notification to heat transfer customers was sent by registered mail on December 15 1971, to all known users. All sales have been discontinued. Some customer conversions to other fluids have been made, and Jur engineer team is available to help others convert on equest. 2) All original equipment capacitor and transformer customers for our PCB dielectric fluids were notified on December 21, 1971 that further sales after January 15, 1972, would be dependent on receipt of financially meaningful and acceptable hold harmless agreements. To date six companies have com- . plied, which represent 63% of domestic dielectric sales: General Electric, Westinghouse, McGraw-Edison, ITS Imperial, Sprague Electric and Federal Pacific. Additional customers ..indicate they will comply and we expect the majority to do \ so. Progress on this part of the program now permits us to ^ notify miscellaneous "top-up" customers and repair shops of our plan and will permit referral to original equipment manufacturers for fluids. The dielectric program is also being extended to a small group of miscellaneous dielectric customers using our fluid in the manufacture of closed.switch gears, electric raagnet3 and hermetically sealed electric motors. ^ 3) All plasticizer customers were notified on December 31 1971, of our Intention to discontinue PCT sales for this use effec tive March 31, 1972. In a limited number of hardship cases where the customer requires lead time to develop alternate formulations, such as certain investment casting customers, a program consistent with our overall program has been developed, including hold harmless agreements, to allow sufficient purchases before our cutoff date to permit the customer's required reformulations. AuM 00e>02< 130 ct -2 - 4) A letter will be sent on January 31, 1972, to all users of PCT-containing hydraulic fluids, notifying them that Monsant will eliminate sales of PCT's for this use no later than June 30, 1972. The status report on our EX-U.S.A, program Is as follows: 1) All sales of PCB's for all uses other than as dielectric fluids will be terminated January 31, 1972. 2) Continued sales of PCB's for use as dielectric fluids after March 31, 1972, will be dependent upon receipt of hold harm less agreements acceptable to Monsanto from customers whose financial responsibility makes such agreements meaningful In Monsanto's opinion. 3) Sales of PCT's Ex-U.S.A. will be discontinued on the same ^lme schedule as used on domestic sales. The President has authorized MICC's Managing Director to make exceptions on a case by case basis. Two have been made in our Ex-U.S.A. program: 1) Because of the safety needs of the German coal mining Industry . for our PCB-containing hydraulic fluids, sales will continue for this use for the shortest possible time beyond January 31, 1972, to permit clearance of substitute materials. Indemnity agreements are not possible, but techniques of sale reviewed with German counsel are being utilized to minimize our exposure 2) A commitment to sell 600 tons of our PCB dielectric fluids was made to the Russian state purchasing authorities in December, 1971, prior to formulation of our Ex-U.S.A. program. Completion of deliveries before our March 31, 1972, cutoff date is not possible nor is an indemnity_,^aslblev.,.vPull^.-.x..w-^:-. .^dd-ac-losure-of-TJroblems' Ti-b^hl^M'de'V' b u V sorne 'deliveries will occur into July, 1972. We have been in close touch with the Pederal Interagency Tas*k Force under Dr. Edward J. Burger, Jr.'s direction. This task force is preparing to issue a report on PCB's about mid-February. We will be allowed to work with them in its preparation. On January 21 and 22, Monsanto representatives met with a group of scientists to discuss the general PCB situation. Present were Dr. Warren Muir, Council of Environmental Quality, Dr. Edward Goldberg, Scripps Institute of Oceanography, Dr. Robert Riseborough, University of California, and George Harvey, Woods Hole Oceano graphic Institution. The meeting went well and we feel the scientists left with a much fuller understanding of the overall PCB issue than they had previously. 131 1 AQH 0 0 6 0 2 5 r ( -3- We have discussed the essentiality of the use.of PCB'3 for dielectric fluids with key companies in the electrical industry and General Electric and Westinghouse Electric have submitted reports to the National Industrial Pollution Council and the Office of Science & Technology in which they testified as to the necessity for continued use In these applications and the steps being taken to contain the PCB's in these electrical closed syste: Ve expect to complete our entire implementation program on schedui \ .TWiS.S'-: c. v AOM 0 0 6 0 2 6 132 i Monsanto M ONSANTO tNOUSTftUl C H t M C A L S CO. 6 0 0 N. LmdorgH S o u lt v t rd S r Louis. M issouri 83166 Pftont: (3U) 6 9 4 -1 0 00 Dear Sir: We are writing to advise you that Monsanto has adopted certain restrictive policies with respect to its further sale and delivery of all polychlorinated biphenyl (PCB's) products used as dielectric fluids in transformers and capacitors including but not limited tc^those sold undex tradenames such as Aroclor, InerteenOt and Pyranol, and under the generic term askarel. C\ Effective 15 January 1972 Monsanto will sell and deliver these products only to manufacturers of transformers or capacitors who have entered into agreement to indemnify and hold harmless Monsanto in the use of these products. The two copies of such an agreement are attached. The acceptance by Monsanto of such an agreement is subject to receipt of financial and other information from you icbs.nce,.o _ . a ir^ataacAt.-p.BOtectiorvX -=- which, in Monsanto's opinion, makes the agreement meaningful. * As we have previously advised you, studies indicate PCB's may be accumulating in the environment. In seme instances, PCB's have been found in food or in the food chain. For your information, attached is an article by Carl G. Gustafson of the Federal Water Quality Administration appearing in "Environmental Science & Technology" which deals with this subject. Because of Monsanto's concern over this problem, we are discontinuing sales of PC3's in any applications except as dielectric fluids for use in transformers and capacitors. unit of M o n n a t o C o m o m y 133 A O CCZH72 Page 2 If you desire to continue purchase of these products from Monsanto after 15 January, please have the attached copies of agreement signed by an authorized officer on behalf of your company and forward a fully signed copy, together with your most recent audited financial statement and any other information which you feel will assist Monsanto in its evaluation. If you have any questions please telephone (314) 694-2455 or write directly to Mr. H. S. Bergen, Monsanto Company, P. 0. Box 14617, St. Louis, Missouri 6317B. We sincerely regret any hardships that this decision may cause you but it is taken in an effort to continue to make available these products for critical electrical applications. Very truly yours Enclosures Specialty Products Group Monsanto Industrial Chemicals Co 134 ACM 002*. ( Monsanto M O N SA N TO INO STNIAL C H IM IC A L S CO. 8 0 0 N. Lintrgfi Boulevard St. Louis. M isso u ri 83185 Pfton: (314) 8 9 4 -1 0 0 0 SPECIAL UNDERTAKING BY PURCHASERS OF POLYCHLORINATED BIPHENYLS Monsanto Company ("Monsanto") manufactures certain poly chlorinated biphenyl products ("PCB's") which ______________ _ ("Buyer") desires to purchase. While Buyer desires to purchase PCB's because of certain desirable flame resistant and insulator properties. Buyer acknowledges that it is aware and has been advised by Monsanto that PCB's tend to persist in the environment; that care is required in their handling, possession, use and disposition; that tolerance limits have been or are being established for PCB's in various food products. Monsanto has therefore adopted certain restrictive policies with respect to its further production, sale and delivery of PCB's, including the receipt of undertakings from its customers as set forth below, and Buyer is willing to agree to such undertakings with respect to sales and/or deliveries of PCB's by Monsanto to Buyer. Accordingly, Buyer hereby covenants and agrees that, with respect to any and all PCB's sold or delivered by or on behalf of Monsanto to Buyer on or after the date hereof and in consideration of any such sale or delivery, Buyer shall defend, indemnify and hold harmless Monsanto, its present, past and future directors, officers, employes and agents, from and against any and all liabilities, claims, damages, penalties, actions, suits, losses, costs and expenses arising out of or in connection with the receipt, purchase, possession, handling, use, sale or disposition off such PCB's by, through or under Buyer, whether alone or in combination with other substances, including, without implied limitation, any contamination of or adverse effect on humans, marine and wildlife, food, animal feed or the environment by reason of such PCB's. gAii of M o f l a n l o C o m o m y ACM 00a 135 2- All existing contracts for the sale of PCS's by Monsanto to Buyer are hereby amended to contain the provisions set forth above. Nothing herein shall create or imply any duty or obligation of Monsanto to sell or deliver any PCB's to Buyer. No condi tions, understandings or agreements purporting to modify or vary the terms hereof shall be binding unless hereafter made in writing specifically referring to this agreement and signed by the party to be bound and no modification or variance of the above undertaking shall be effected by the acknowledgment or acceptance of any sale document, purchase order, shipping instruction or other forms containing terms or conditions at variance herewith. BY: TITLE: DATE: __________________ (Buyer) MONSANTO COMPANY BY: 1 A C " C C 2 <*' 136 c( Monsanto M ONSANTO INOUSTKIAL C H IM IC A L S CO. 8 0 0 N. Lnc35rgn 8oul#vard S t lom t. M issouri 83168 Phont: (314) 8 9 4 -1 0 0 0 . February 4, 1972 Dear Sir: We are writing to advise you that Monsanto has adopted certain policies with respect to its further sale and delivery of all polychlorinated biphenyl (PCB) products used as dielectric fluids includin^but not limited to those sold under tradenames such as Aroclor'Ei InerteenCa^ and Pyranol and under the generic term askarel. Effective immediately Monsanto will sell and deliver these prod ucts only to manufacturers of electrical equipment or components who utilize the products as dielectric fluids and who have entered into agreement to indemnify and hold harmless Monsanto in the use of these products. The two copies of such an agreement are at tached. The acceptance by Monsanto of such an agreement is sub ject to receipt of financial and other information from you (such as evidence of adequate insurance protection) which, in Monsanto's opinion, makes the agreement meaningful. As you are undoubtedly aware, .studies indicate PCBs may be accumu lating in the environment. In some instances, PCBs have been found in food or in the food chain. For your information, attache is an article by Carl G. Gustafson of the Federal Water Quality Administration appearing in "Environmental Science 4 Technology" which deals with this subject. Because of Monsanto's concern over this problem, we have discontinued sales of PCBs except for use as dielectric fluids in electrical equipment and components. If you desire to continue purchase of these products from Monsanto, please have the attached copies of agreement signed by an authorize officer on behalf of your company and forward a fully signed copy, together with your moat recent audited financial statement and any other information which you feel will assist Monsanto in its evalus tion. s unit of M o n s a n t o C o m p a n y 22 137 ACM 00 Z Page 2 If you have any questions please telephone (314) 694-2455 or write"directly to Mr. H.S. Bergen, Monsanto Company, P,o, Box l46l7j St. Louis, Missouri 63178. We sincerely regret any hardships that this decision may cause you but it is taken in an effort to continue to make available these products for these important electrical applications. Very truly yours, /bi Enclosures Howard Bergen, Director Specialty Products Group Monsanto Industrial Chemicals Cc 133 ACM CC Monsanto M O N SA N TO INDUSTRIAL C H E M IC A L S CO. 8 0 0 N. Lm flbtrgh lo u U v t r S t Lowit. M isso u ri 63188 Phon: (3U) 694-1000 SPECIAL UNDERTAKING BY PUP.ClASERS o f p o l y c h l o r i n a t e d b i p h e n y l s Monsanto Company ("Monsanto") manufactures certain poly chlorinated biphenyl products ("PCB's") which ____________ _________________ ("Buyer") desires to purchase. While Buyer desires to purchase PCB's because of certain desirable flame resistant and insulator properties. Buyer acknowledges that it is aware and has been advised by Monsanto that PCB's tend to persist in the environment; that care is required in their handling, possession, use and disposition; that tolerance limits have been or are being established for PCB's in various food products. Monsanto has therefore adopted certain restrictive policies with respect to its further production, sale and delivery of PCB's, including the receipt of undertakings from its customers as set forth below, and Buyer is willing to agree to such undertakings with respect to sales and/or deliveries Accordingly, Buyer hereby covenants and agrees that, with respect to any and all PCB's sold or delivered by or on behalf of Monsanto to Buyer on or after the date hereof and in consideration of any such sale or delivery, Buyer shall 'defend, indemnify and hold harmless Monsanto, its present, past and future directors, officers, employes and agents^ from and against any and all liabilities, claims, damages, penalties, actions, suits, losses, costs and expenses arising out of or in connection with the receipt, purchase, possession, handling, use, sale or disposition of such PCB's by, through or under Buyer, whether alone or in combination with other substances, including, without implied limitation, any contamination of or adverse effect on humans, marine and wildlife, food, animal feed or the environment by reason of such PCB's. t unit o Wflrtuftio Comoany 139 AC* CC2<rC kK - 2- All existing contracts for the sale of PC3's by Monsanto to Buyer are hereby amended to contain the provisions set forth above. Nothing herein shall create or imply any duty or obligation of Monsanto to sell or deliver any PCS'a to Buyer. No condi tions, understandings or agreements purporting to modify or vary the terms hereof shall be binding unless hereafter made in writing specifically referring to this agreement and signed by the party to be bound and no modification or variance of the above undertaking shall be effected by the acknowledgment or acceptance of any sale document, purchase order, shipping instruction or other forms containing terms or conditions at variance herewith. BY: TITLE DATE: ___________________ (Buyer) MONSANTO COMPANY BY: -j-"-- tv".-- ,*** ACM C 02 > c 140