Document zbzjRo26eqXG211yYjx1nnpbB

RO'JGH DRA7T - 11/10/60. O O T ld E PCS KNVXRCNMHWEAL POLLOTICN ABAT3EH E PLAN Introduction IT. ,t.i! iXU. Problem * * Extensiveness ( IV. .Nature of the Problem fleeeercir^nd-medloal-inpttt V. Effect on Monsanto VI. Effect on Customer f. VII. Involvement with other producers V I U . Sources of Contamination IX. Recent technical changes which have bearing on the contamination X. Courses of Action ir 7 I U . Recommended Course of Action XU. Implementation of the Recotmended Coarse of Action A. Immediate Action (12-1-69) B. Interim 1-3 months C. Short term - .3-6 months D. Long term (1-3 years) PLAINTIFF'S EXHIBIT HVL STR 021.936 1. Research medical 2. Manufacturing 3- Engineering 4. Market . 5 - Patent ,, ' ' - s . ' Environmental Control T. lesal 125 ' 8. Public Relations 9. O t h e r s SI xiz: Probability or ces5 STR 021939 128 PCS ENVmCNMENTAL P Q U E T I C N ABATEMENT PLAN Introduction On 15 October the "AD HOC" Committee consisting of Messrs. M. Farrar, P. Hodges, E. John, V. Richard, and E. Wheeler Issued a report summarizing the polychlorinated biphenyl (PCB) pollution problems from the known available Information to date. Out of this report came considerable Information, conclusions, and recommendations which we have attempted to tie together Into a plan of action In this document. Our objective has been to take a reasonable and responsible approach to the entire problem. Before we get Into the 'problem, we should clarify the meaning of PCS, the nature of the entire line, and how these tie Into our product line of Aroclors. SIR 02 m o Monsanto entered the Aroclor market in 1930 by acquiring Swain *> Electrical Company or known today aa our Anniston, Alabama plant. 'The first load of Aroclor'which Incidentally was- Aroclor 125^ -- - > . went out of Anniston# Alabama to GE in 1931* ,,'Since that time the - -- - tv^--- - --- -- -- *-- mai^cet has grown to 170 to 20GR*worldwide * Chemical Biphenyl Monsanto Product Line . Mature of Material at Ambient_________ Solid Solid--S-S^Suhiiaes-at- Pentachlorobiphenyl Aroclor 1221 Aroclor 1232 Aroclor 1242 Aroclor 1246 Aroclor 1254 Aroclor 1260 Aroclor 1262 thin liquid (oil) * thin flush water oily type fluid material Thicker - transmissic oil Heavy-Molasses Thick - tar Very thick - liquia Aroclor 1263 Aroclor 12715 . Solid Solid STR 021941 -3- I r Total possibility-are 210 theoretically possible chlorinated biphenyl y Santowax or terpheayl Solid / et II. Problem cl e( f * V cr ex, c( Arcelor 5^60 Solid Damage to the ecological system by contamination from polychlorinated biphenyl (?C3). Extensiveness i The problem involves the entire Uhited States, Canada, and sections of Europe especially the United Kingdom and Sweden. As the investigation broadens other areas of Europe, Asia and Latin America will surely become involved. Evidence of contamination have been shown some of the very remote parts of the world. T h e Involvement could and most likely will follow the DDT investigations. rv\ Nature of the Problem Professors Vidmark and Jensen of the Institute of Analytical Chemistry at Stockholm, Sweden, In November 19^5, announced and confirmed flndlr PCB in fish, birds, and eggs. Subsequent findings were made in 195? - Great Britain. In February 1969 Professor Risebrough of the Universe of California published an article in the San Francisco Chronicle relaying his findings of PCS in the environment of the Uhited Stat e s . Monsanto confirmed the presence of PCS ' 3 In nid-1969 and confirmed the adequacy of work by Vidmark and Jensen and others; truly, the P C B rs ' are a worldwide ecolological problem. STR 0219*2 129 ) - ft - c Analysis indicates the environmental presence of the 5 and higher chlorinated biphenyls which take the appearance of A r o d o r 125ft and Aroclor 1250. 1 We have strong indications that Arcelor 1242 or at lea: part of It degrades biologically;. Since the Aroclor 12ft2 contains ar; T percent of the 5 chlorine biphenyl or higher we cannot rule out the possibility that the observations may be a concentration affect of th< higher chlorinated biphenyls of Aroclor 12ft2. To date there have been no reports of finding Aroclor 12ft2 present in the environment (except outside the effluent of our plants where we k: Aroclor 12ft2 is present). The seriousness of the problem can best be spelled out as follows: 1. Pish - Karine or aquatic species concentrate PCS in the fatty * tissue. Toxic is small quantities (down to 5 ppk) to sensitive m. life such as shrimp. 2. Birds - Predatory species feeding on the marine or aquatic life c further concentrate PCS to possible harmful effects. Specificall: in birds PCB can affect the calcium metabolism leading to egg she imperfections which prevents proper hatch of the young. In fact, Monsanto has confirmed the eggshell by feeding chickens, a high order of the species, PCB's in controlled tests. 3 Man -'There is no harmful effect known to man or other mammals a ftO years of production. Investigations are underway by various sources. STA 0219 ft. Political and Public Emotion - PCB's are falsely linked with DD T because PCB's show up in the analysis for DET. PCB's are linked other permanent type chlorinated hydrocarbon pesticides. This becomes particularly serious since about every article, of food ir 'Country Is being examined for a trace of these materials. ./ . 5^-}/'s's*..i/?- c - c-t>w'l :\ .f Z"*-*'*':r'` -s if, . l^n  i I' i 1 [ f- -a a EPOXIDE a DOT ODD B g 1 Structural Formulas of Nine Chlorinated-Hydrocarbon ft* .* \ STR 021*44 I * I l*.**n PE3TICIPBP .1i- Q Endrtp ..!*':>i > Heptachlor "fi* / Dindane VSiiO'S y.Ct Me thoxychlor :`y in$ JC o,p DDT if pp.4 DDB ,-j - 1 * i.is, ( 5*18 * 3 p p 4 DpD A ldrih y Dieldrin * 3*63 * W . 5 .0 4 . ii ,.**-V 1s: Effect on Monsanto Business potential at stake on a worldwide basis: TW. `Fluids Plasticizers Total/fear TOFT lb s . 34K lbs. l O W lbs, $l6ff $6-3? G.P. $61? ^1 $2- 3H g.P. $22H $8-llH G.P. Already competition is using certain data against us In competitive situations. A. Legal Liability Direct lawsuits are possible. The materials are already present in nature having done their "alleged damage". All customers using the products have not b e officially notified about known effects nor our labels carry this information. These are only a few of the possible legal implications which would best be covered by the legal department. B. Public Image The corporate image of Monsanto as a responsible member of the business world genuinely concerned with the welfare of our environ ment will be adversely affected with Increased publicity. The evidence proving the persistence of these compounds and their universal presence as residues In the environment is beyond questioning. This combined with certain scare publications is csri to give an adverse image. Gullty^association (with DDT) will p r e vail as the background while actual facts may be sparse. c. Customer Relations STR Q219^ Some customers who presently use these materials will be "scared ol to other competitive products. Products associated with the same name or "trademark" will be adversely affected ie., Therminol, Pydraul and Aroclor. Competitors will use the information for -an rC - 5 - Influence on Monsanto products. Customers id.ll seek other "outs" rather than become Involved. VI. Effect on Customers, and Ultimate Ccncuunrs One of the unique* features of PCB's is their fire resistance. Here the basic decis4ion whether to risk lives due to fire or risk extinction of. m some species of birds. In this case the PCS would probably be accepted as a necessary pollutant and tolerated under controller conditions. A. Electrical Industry - Capacitors and Transformers use Aroclor ' because it is the best inexpensive dielectric fluid available. B. Pood Processing - Bulk "deep frying" units for potato chips, fish, and doughnuts use the fire resistance fluid as an indirect heating medium. C. Die Caster -- and other hot metal working industries fire resistant fluids to protect the worker^ Affects a wide range of plastics and adhesives because the PCB serves as the plasticizer. A wide range of paints and coatings are affected. The "Carbonless carbon paper used so widely would disappear. V H . Involvement With Other Producers Although Monsanto is most probably responsible for the U.S. ccntamlnat and Jointly responsible with MCL for .the United Kingdom problem, we cannot accept responsibility for the world. There are five known producers in the free world, several possible producers behind the ire curtain and couple of additional companies making overtures about entering the business. Monsanto representatives have on one occasion discussed this problem with a couple of these producers but.they expressed no great concern. In fact, it is highly possible that one ; - 1 q.i SIR 021947 f -7 - * these manufacturers is dumping his waste into the Rhine River. Cental. any action taken by one producer will most assuredly affect the other. vS-"*' _ ;\Xt is entirely possible that a joint plan of action could be developed r' bat will most probably have to be spearheaded by Monsanto. It is also likely that producers of other chlorinated products used with P C B rs will be dragged into the investigation. * T U I . Sources of Contamination Although there may be some soil and air contamination involved, by far the most critical problem at present is water contamination. To our taowledge to date the contamination can be broken down into two genera .categories, open and Indirect pollution. A. Open Pollution - Our manufacturing facilities sewered a sizeable quantity of PCB's in a years time. 1. Fluids Fluids are probably the most open source of pollution because their mobility. They also may be-the least serious because th are generally the lower chlorinated materials. 2. Electrical Electrical customers have in the past sewered their wastes. 3 Heat Transfer Eeat transfer customers have sewered their objectionable and their spilled material. 4. -Industrial These fluids have generally been sprayed into drains, washed down sewers and generally regarded as very harmless. All of the fluids have had the Plskf constituent dumped on dirt roads a "dedusting agent" which inadvertently found its way back to the stream. STR 02194a c c. 5. Plastics 'The plastics are not as mobile as the fluids so therefore the have not found and cannot find their way back to streams in < pollution. B. Indirect Shipping containers and the cleaning thereof for subsequent use source of contamination^ 1 . Fluids a. Electrical - Disposal of "burned out" transformer and capacitors may find Its way back to streams. Scrap unit: (new) are generally disposed of in land fills but could possibly get back to the stream. b. Heat Transfer - Leaks could contaminate. c. Industrial - Cross product contamination carried out of ; air compressor. Residual material carried on parts. 2. Plasticizers a. Process Contamination from Washing (1.) Environment Contamination Swimming pool paints Incineration of wax coatings Traffic paints (2.) Product Contamination SIR 021949 Coating for tank lining Certain adhesives XX* Recent Technical Changes Which Have Bearing on the Contamination A* Fluids ~The sources of pollution were pointed out as they have been in t past because we are dealing with that quantity of material in tth 1 f~S ( -9- c environment today which was deposited over the past forty years. We jBiaffiJmust state that responsible people throughout the Industry have taken .corrective action to reduce contamination in the last two years. Theri ---- -have also b.een technical advances which have brought about the use of lower chlorinated biphenyls which may he an advantage because to date low chlorinated ones have not been Identified present in nature. 1. Electrical - The large customers have established collect systems the waste is recovered. Incinerators are being investigated and built for the disposal of the materials. There has been a shift away from the higher chlorinated types products and could probabl; -shift almost entirely away from those products. 2. Heat Transfer - System have been tightened up and redesigned to .confine the contents Here^toy the trend has been to shift away from the higher chlorinated materials. 3. Industrial - Settling ponds have been built by the large manufactu to catch the material and decant off the PCS for reprocessing. T trend here as the other fluid areas has been towards the lower chlorinated materials. 4. Plants - The plants effluent has been passed through limestone wh provides surface to catch some of the material* But high concen trations can be found in our effluent (that is relative to those findings In nature causing the problem). B. Plasticizer Quite opposite to fluids the trend in plasticizer Aroclor has been ti higher chlorinated biphenyls. In plasticizers the lower chlorinated biphenyl will not be an acceptable solution however, the lower chlori terphenyl-c-could offer a possible solution. STR 021950 - u _-filO i r ' 10 ` r. Courses of Action A* Do Nothing We cannot deny the findings and the acquisitions by the various agencies. If we took no action we would likely face numerous suits We would* let government tolerances be based on public and political pressure along with any experimental or developed data which they may generate. We would most likely be forced out of this business. Other product areas would be adversely affected-r We would project an image as an irresponsible member of the busines world. Project poor customer relations. The only advantage to thi technique offers is it reduces the cost but this too must be weighed against potential loss of business. B* Discontinue Manufacture of All Polychlorinated 3iphenyls (PCS) Although we all realize this could be an eventually unfortunately the solution is not this simple*' Assuming we did step manufacture immediately, the pollutants are present in the environment; the liability is present and possibly by the shifting to the lower chlorinated materials and the recovery techniques the contamination may already be reduced to an acceptable level. Obviously the entire business would be lost without any or very few substitutes to be offered. Other product areas would be affected. Financial loss could be considered due to raw material contracts, customer contrac and royalty -- secrecy contracts. Competition would take advantage on all fronts. W e would be admitting guilt by our actions. Loss of capltol investment in the plant, associated utilities, and asso ciated processes. We would possibly gain a little public image on this action* STR 021951 C. Respond responsibly# admitting that there is growing evidence of environmental contamination by the higher chlorinated biphenyls and take action as new data is generated to correct the problem. \}< 133 - 11 - Tills approach would enable us to phase out the higher chlorinated materials'In many applications where they are no longer necessary o r really desired* ' We could maximize the corporate-Image by publicizing this act. Ve would reduce a known pollutant. Additionally we could gain precious time needed to develop new products and Investigate further the* lower chlorinated materials. As new research data Is generated our course say be altered considerably. Certain limited actions may reduce or limit the problem. SIR 021952 r - 22 - r XI. Recommended Course of Action T' ` B a s e d .on the information available today the only recommendation we car. honestly make is respond responsibly admitting that there is growing -1... - evidence of environmental contamination b y the higher chlorinated biphenyls and take action as new data is generated to correct the problem. % t t T- Implementation of the Recommended Course of Action A. Immediate (By 12-1-69) 1. Set up a task force under a project manager or the equivalent responsible for initiating, directing and implementing all actio that Monsanto decides to take. This includes sufficient budget necessary to cope with the immediate problems. This task force should include representatives from Medical, Legal, Research and the two involved Marketing Groups and Public Relations and must conduct liaison with MCL and other locations involved in the problem. 2. Decide on timing and content of any public and/or customer notii cation of PCS problem. B. Interim (Within 3 months) Fluids Plasticizers 1*. Confirm Aroclor 125^/Aroclor 1260 are found in the envi ronment. 1. Announce differential between flulds/plasticizer uses. 2. Publicize the difficult anal, 2. Announce safety of other ? C 3 ' tasks. chlorinated terphenyl. . 3* Protect other PCB/chl. terph. 3. Educate customers on control effluent for all products. Announce plans to reformulate 4. certain Therm! no Is and Pydraul where control of the product is difficult. Initiate program to develop- A 1254 *& 1260 substitutes STR 021953 vUi' i r - 13 - f 5. Emphasize better control over 5. Investigate -with manufacture other. Aroclor 1254 & 1260 the feasibility of altemat'-i uses. products. 6. Initiate' customer education or Sr-- AcaOjjse 1242 need for effluent control of all products 7. Determine composition of all PCB*s. Develop & comprehensive Program 2Short Term (within the next 1 months) 1. Research - Expand program for more meaningful biodegradation Medical studies and confirming analytical results. Expand -toxicity studies. Follow developments concerning publicity and those developments covering political implications of PCS contamination. 2. Marketing - Discontinue or substitute replacement products for those applications of Aroclors 1254 and 1260 where the Aroclor remains mobile. Work with customers to clean up plants on other Aroclors. Report the habitual violators or "do nothings" to the product group. Reclaim or safely dispose of fluids.' STR 021954- Consider renaming products that do not contain PC3. Follow ar report market developments such as customer disposal systems. Follow and report any political or public feedback whicham a y affect the contamination problems and must be coordinated w i t '; Medical Research and Legal.' ' ^41 3* Production - Clean up plants and stop gross contamination. 4. Legal - Define our present position# recommend reasonable aet< that will not unduely alarm the market but reduce the expccur: in terms of liability. Coordinate recommendations with Marine: 5 Public Relations - Publicize actions where believed advantages - Certainly discussions should be held with other producers with same period to determine their planned course of action If an Long Range Tentative Outline (Prom 1 year to 3 years) Realizing that the comprehensive program must be outlined the "Lon Range Tentative Gut line" Is meant to serve as a guide: All aspect 4 of this program should review quarterly by Organic Management. 1. Research-Medical Continue biodegradation studies and analytical support Isomer distribution Toxicity and metabolism studies Water soluble removal Incineration analytical support Confirmation analytical m -- Contract academic research for reference Develop new and Improved formulations 2. ,Manufacturing a* Process Research and Development (1.) Identification of typical Aroelor Isomers (2.) Develop control for effluent composition ' (3 *) Test substitute formulations etc. (4.) Develop new processes b. Clean Up Plants c. Modify processes to meet market heeds 3 Engineering a Develop and set up on plant locations incineration system: b. Design new processing equipment as necessary - 142 4. Marketing a Specify alternates *or changes STR 021955 b . Customer- liaison - 15 - c. Set reclaim or disposal of fluids d* Work on same association problems ( 5- Patent Investigate trademarks registered Cover with patents any work felt patentable 6. Environmental Control \ Develop cheap disposal systems for customers a. Incineration or pyrolysis b, "Biodegradation unit etc* c* Consultants In pollution control 7. legal Investigate and define our position, on Royalty secrecy agreements * Contracts - Raw Material and Customer 8 Public Relations Portray to public positive actions at correcting the contamination problem* Release periodical statements i covering our position. 3 U I . Probability of Success i STR Q2195* ''143 cI. C' - I S xry. Cost of Program Neither the program nor the costs have been clearly defined at this t However a cost estimate of $220,000 for toxicological work alone has been presented. Tentative figures indicated under the worst ccnditlc the entire program could run as high as $2.0-2.5ft. At this stage it very difficult if not impossible to develop a reasonable .cost figure one point Is clear It will be larger than the normal research budget handle. For this reason assuming the approach Is acceptable we shs be forced to ask for additional appropriations to fund the program. XV. Future Follow developments on the problem as they unfold. Develop an aggressive research program to confirm or deny findings ai better understand the problem. Develop costs for the duplementation of the Recommended course of action. ' Develop specific actions with each department involved Submit the actions with costs for approval - Develop a timetable to solve the overall problem. Prepare for "predpitious pullout" or drastic legislative action alt! we do not feel this is a likely possibility. r fL STR 021*957 L. ACTICK DO NOIHIMO DOLLARS ROFIT AMD LIABILITY VS. - DISCOHTINDS HANFACTCTRS 3F PCB A- 70 71 72 73 DOLLARS i" i i PROFITS * i 1 cc PROBABILITY OP SUCCESS i * * 0 70 . 71 ' 72' 73 74 Time -* AC -1 ^ D STR Q21959 FRtfr uz L If Sili r y v- T i m-, p /lo B fisu -Yrr f s c c STR 021961 143