Document ymG50p4yLm0zGx88Y3m3Nzjv2

November 30, 1970 Mr. Keith Kelly Manager of Purchasing Power Systems .-- C VJeetlnghouse Electric Corporation Box 341 Bloomington, Indiana 47401 v \N Dear Keith: ' Randy Graham and I enjoyed our visit with you. I am particularly pleased that I had the opportunity to meet you and to discuss in person the price Increase for Aroclor (Inerteen). The prices of Inorteen 54201 CP and Aroclor 1232 will be increased $0.02 per pound effective 1 January 1971 (1 July 1571 in accordance with your contract). The new prices for tanhesr shipments will be $0.18 per pound, froight allowed, for both products. As I stated at the tine of our meeting, there ore several factors Which lead Monsanto to this price Increase decision. Certain of the more highly chlorinated PCBs (polychlorinated biphenyls) have boen found to persist in the enviroament, and may bo harmful to sensitive marine and bird species. Due to this PCB environmental pollution problem Monsanto has withdrawn certain Aroclors from non-electrical product applications where confinement and control of the PCBs are not possible. This has resulted in substantially lower volumes and increased product costs* We intend to continue to mahe these products available to the electrical Industry for use in sealed capacitors and transformers. In doing so, the need to conform with requirements dictated by the PCB environmental problem has resulted in additional increases In manufacturing costs, toxicological testing expenses, and re search costs. Monsanto has historically had a responsible pricing policy on Aroclor. We will continue to operate under the same policy and have approached this price change as one which would provide Monsanto only the minimum necessary revenue required by the true increases in our cost of operation. DSW 019616 STLCOPCB4007549 Mr. Keith Kelly 2 November 30* 1970 Keith, I was quite impressed with your plant operations and the work that hxs boon done to assure proper handling of these .products. I will bo back in touch v/ith you shortly concerning the modification to the contract v/e diocusood. Very truly yours. A V cej 0. B. Graham P. Q. Benignus H. S. Bergen T. L. Qossage Director of Sales Functional Fluids DSW 019617 STLCOPCB4007550