Document vwgL4gnK6Nz0ywaMXwrkbpB9

The Vinyl Institute January 8, 1986 The Honorable Michael N. Governor's Office Legislative Hall Dover, Delaware 19901 Castle Re: Regulation of Vinyl Chloride Monomer Dear Governor Castle: On October 22, 1985, you addressed the State Affairs Committee of the Chemical Manufacturers Association (CMA). During this presentation, you referred to Delaware's problem with vinyl chloride gas, your uncertainty concerning the health effects on the general population of releases of vinyl chloride into the air, and the "consistently poor safety practices" of a polyvinyl chloride (PVC) plant owned by Formosa Plastics Corporation. Most members of the vinyl chloride monomer (VCM) and PVC industries have successfully minimized emissions by thorough compliance with applicable federal and state regula tions. But, as you so aptly noted, "The best safety record in the world doesn't amount to a hill of beans if your neighbor or competitor is constantly on the front page for safety viola tions. You are all .arrad with the same brush." The Vinyl Institute (VI), a division of the Society of the Plastics Industry, Inc. (SPI), represents most of the major domestic producers of VCM and PVC and enjoys an excellent reputation in all the communities in which we operate. We do not wish to be tarred with the same brush and must point out that Formosa is not and has never been a member of the Vinyl Institute or SPI.--' */ SPI, the major national trade association of the plastics industry, is a Corporation organized under the Not-for-Profit Corporation Law of the State of New York. Its 1,700 member companies and individuals and 49 operating units include those who supply raw materials; process or manufacture plastics or plastics products; and engineer or construct molds or similar accessory equipment for the plastics industry. The majority of SPI members are the processors and converters of plastic resins into end products which represent 75% of the dollar volume sale of plastics in this country, (footnote continued) A Division Of THE SOCIETY OF THE PLASTICS INDUSTRY, INC. 355 LEXINGTON AVENUE* NEW YORK. N.Y. 10017 (212) 503-0652 see 5-2167 The Honorable Michael N. Castle January 8, 1986 Page 2 Our primary purpose in contacting you is to indicate our desire and availability to assist your office/ the Depart ment of Natural Resources and Environmental Control (DNREC) and the public by providing scientific and technical information on the emission control and health effects of VCM and PVC. Members of the Vinyl Institute have dramatically reduced emissions of VCM in their facilities as confirmed by U.S. Environmental Protection Agency (EPA) reports. As responsible members of the industrial community/ we are concerned that Formosa takes the necessary steps to create a safe and sound facility in light of obvious past deficiencies. Despite the fact that Formosa was not a VI member/ we extended offers of technical assistance to Formosa in a June 1985 meeting. We also extended this offer to DNREC in a September 1985 letter. We take this opportunity to reiterate again our willingness to assist Delaware authorities and Formosa. During your CMA presentation referred to at the beginning of this letter, you commented on the absence of information on which to base a response to citizen inquiries on the community health and safety impacts of VCM emissions. The Vinyl Institute is preparing a document addressing this topic and will forward it when completed. The EPA rulemaking l.'sding to the 1976 vinyl chloride standard was based on the adverse health effects for workers exposed to high levels of vinyl chloride monomer in plants (not communities). There was and is an absence of any sound [Footnote continued] Members of the Vinyl Institute include Air Products & Chemicals, Inc., The BFGoodrich Company, Borden, Inc., CertainTeed Corporation, The Dow Chemical Company, Georgia Gulf Corporation, Occidental Chemical Corp., PPG, Inc., Shell Chemical Co., Tenneco, Inc., and VISTA Chemical Company. Members of the Vinyl Institute account for approximately 72% of the domestic production of vinyl chloride and 76% of the domestic production of polyvinyl chloride. The Vinyl Council of Canada is a Special Member of the Institute. ICI Europe Ltd. Petrochemicals and Plastics Division is an Assoc late Member. see 5-2168 The Honorable Michael N. Castle January 8, 1986 Page 3 scientific information that vinyl chloride monomer is harmful at community ambient levels. Moreover, EPA's projections of expected community cancer cases from VCM exposure both before and after industry compliance with the 1976 standard fortunately have not materialized. We are particularly interested in the application of remedial solutions with proven success to the Formosa facility. The use of unreliable or unproven control technologies provides no additional protection to the public and could very well distract both the State and Formosa from implementation of a real solution. Well-intentioned but misguided corrective efforts here may lead to unnecessary expenditures and regula tions elsewhere. We have reviewed the consent decrees and strongly believe the proposed remedial solutions alone are inadequate and are only a partial solution of the problem. We are convinced that all PVC plants of this nature must be equipped with a properly designed chemical addition system (short-stop) to prevent over-pressure. The so-called "containment system" referred to in the consent decree is not a substitute for such a short-stop system. We note that a short-stop system was included in Formosa's recent consent order with the state of Texas. Texas v. Formosa Plastics Co P., District Court No. 8510-11452 (Calhoun County, Texas) (August 1985) (copy enclosed). We also feel that the training and maintenance measures should be strengthened, particularly relating to instrument calibration, rupture discs and emergency power. Strong enforcement benefits the public as well as those industries that comply with the standard. We urge DNREC to be vigilant and maintain an aggressive enforcement posture by continued, frequent scrutiny of Formosa's compliance with the provisions of the consent decree. Under the supplemental consent order, Formosa was required to submit several schedules and programs by January 3, 1986. We offer our services in assisting the State in review of these programs and other remedial plans. To this end, we s SCc 5-2.l69 The Honorable Michael N. Castle January 8, 1986 Page 4 request an opportunity to meet with you and your staff to see how we may be of further assistance to the State. Sincerely, Enclosure cc: John E. Wilson, Secretary DNREC Thomas P. Eichler, EPA Region III Robert Chow, Formosa Larry Peyton, Formosa Effective January 20, the Vinyl Institute relocated to 150 Route 46 West, Wayne, NJ telephone number will be (201) 890-9299. please contact us at this new address. offices will be 07470 and our new After that date. SCC 5-2170 NO. STATE OF TEXAS. Plaintiff. V. FORMOSA PLASTICS CORPORATION, TEXAS. Defendant. in the ac&iarxj inmicT of CALHQJiN COUHTTft, TEXAS Puli Juoicm aasiaacT AGREED FINAL JUOGMENT BE IT REHEM8EREO that oin the day of .. titae State of Texas. Plaintiff, and Formosa Plastics Corporation, Texas*. Oefanterat, sub mitted to the Court this agreed final Judgment. By thefe' pnoper- amfi diiiTj autho rized signatures at the foot of this Judgment, all parties-, have: n^arraoBtod to the Court the following: that they have agreed to tte; tisnms- off titans judg ment; that it represents a compromise and settlement of a?lfl! cottons tpQaoed in issue by Plaintiff's Original Petition and Request fm' ai reoponary Imjuection, accruing down to the date of signing of the judgment by titte> Gaunter, tittmit they have requested the Court to approve it; that they have wswedl alflS cra^ht of appeal; that the Oefendant specifically waives .the necessity of tttfc limusroe cf the cita tion and original petition In this matter; that the Oefxndfrntt acRnnuAodg^. receipt of the original petition in this matter; that they have watiueriJ tihe rrmcessity of the issuance and service of the writ of injunction; aftac Ciiey/Hffiue waived the requirements of Rules 680-691, Texas Rules of Civil Mnntedlire;: titant they have received copies of the judgment; that they have watived-irn etecntion of the money portion of the judgment; that they actively gacttnzrsnBtEii ia the negotiations leading up to this judgment and are well avara off Otte dlutties placed upon them by it and are desirous and capable of carrying outf Sfllu'jm duttdaa in full; and that the parties enter into this settlement because off titt* umosrta'Kutjr and costs of litigation and Formosa Plastics Corporation, Texoft* aflaiitis tern liability. Defendant owns and operates a facility which processes fflJhytfleiw dtichloride, vinyl chloride monomer, and polymerized vinyl chloride itiHJIl Runasa Drive,' Point Comfort, Calhoun County, Texas for shipment to pUsSfir febirnistiDrs. Plaintiff's suit against Defendant was requested to' tie; fRilteti by titae Texas Air Control Board (TACB). It alleged various violations; of titto: lecs Clean Air Act and sought injunctive relief and civil penalties. ATT fnjunajtwe provisions ` in this judgment are necessary to the maintenance of the qyUiCy, off trtae air of the State of Texas and particularly Calhoun County, Te3,. whura. ilb^fendant1 s plant is located-. Those provisions are also necessary a- tions of the Texas Clean Air Act, see 5-2171 . ]< Yr35 U.5iC^i_ EJUU5ION The Court has reviewed this judgment and finds it to be proper, necessary to the maintenance of air quality, and in the best Interests of justice. This court approves it In all respects. IT IS THEREFORE ORDEREO, ADJUDGED ANO DECREED: Civil Penalty Provision 1. The State of Texas shall have judgment against the Defendant, Formosa Plastics Corporation, Texas, in the amount of $66,000.00 with interest at the highest allowable legal rate from the date of the judgment until payment thereof. The full sum of $66,000.00 will be irnnediately due and collectible from the Defendant, Formosa Plastics Corporation, Texas, without delay in execution. Payment will be made by cashier's check to the State of Texas and delivered to the Chief, Environmental Protection Oivlsion, P.0. Box 12548, Austin, Texas 78711. The check should have the reference number, AG #85-872. $6,525.00 of the $66,000.00 is hereby denominated "Investigative Costs" in this matter. Injunctive Provisions Defendant, Formosa Plastics Corporation, Texas is hereby enjoined as follows: 2. That Formosa Plastics Corporation, Texas shall, by no later than Karch 12, 1986, have completed installation of and have operable a third waste gas incinerator, the construction permit for which was approved on Kay 2, 1985. 3. That Formosa Plastics Corporation, Texas from the date of the signing of this judgment and thereafter, shall keep at least one waste gr? `r:ine'aicr continuously in operation at all times that the plant is in operation; and after March 12, 1986 shall ensure that a back-up waste gas incinerator is avail able when needed for any reason. 4. That Formosa Plastics Corporation, Texas shall, from the date of the signing of this Judgment and thereafter, begin to implement the "Rupture Oise and Relief Valve Inspection/Testing Program," a copy of which is attached hereto and incorporated herein, for the rupture discs at its facility in Point Comfort, Texas. 5. That Formosa Plastics Corporation, Texas shall, from the date of the signing of this judgment and thereafter, perform a valve operation, alarm check and pluggage check at least once a month and a water simulation check at least 4 times a year of the reaction stopper system in the polyvinyl chloride reactors. -2- scc 1 5-2172 6. That Formosa Plastics Corporation. Texas shall, by no later than October 31. 1985, and thereafter, have in operation control measures at the polyvinyl chloride plant which will allow reaction stopper to be automatically injected Into the polyvinyl chloride reactors In the reaction step after a power failure. 7. That Formosa Plastics Corporation, Texas shall, by no later than October 31, 1985, and thereafter begin to revise the storage and transfer system to increase the inventory. Improve the transfer to the charge tanks and enhance the routine testing of the complete operation at the polyvinyl chloride plant. 8. That Formosa Plastics Corporation, Texas shall, from the date of the signing of the judgment and thereafter maintain on each polyvinyl chloride reactor two independent temperature indicators, one remote Independent pressure Indicator and one reactor mounted pressure gauge, all temperatures and pressures compared weekly. 9. That Formosa Plastics Corporation, Texas shall maintain and operate a back flow preventer on the nitrogen propellant used as the reaction stopper in the polyvinyl chloride reactors. 10. That Formosa Plastics Corporation, Texas shall, by no later than March 1, 1986, have installed and thereafter maintain a second high level alarm on the vinyl chloride monomer sphere YV752 at the polyvinyl chloride plant. 11. That Formosa Plastics Corporation, Texas shall increase delay times In main breaker between the transformer and the switchgear room and shall there after maintain such delay. 12. That Formosa Plastics Corporation, Texas shall, from the date of the signing of the judgment and continuously thereafter, implement a four times per year check of the back-up batteries for each reactor control panel at the poly vinyl chloride plant. 13. That Formosa plastics Corporation, Texas shall. By no later than March 1 1986, have Installed and thereafter maintain a balance header connecting vessels PV102A, PV102B, PV303A, PV303B and PV306 with a comnon relief valve discharging to the gasholder PV304 at a pressure less than the individual relief valve settings at the polyvinyl chloride plant. 14. That Formosa Plastics Corporation, Texas shall, by no later than March 1, 1986, have interlocked the existing load cells on the vinyl chloride monomer charge tanks PV102A and 8 with the filling system at the polyvinyl chloride plant and thereafter maintain such interlock. -3- scc 5-2173 15. That Formosa Plastics Corporation, Texas shall, by no later than March 1. 1986. have installed and thereafter maintain a second gauge glass high level alarm on vessels PV303A and B and PV306. 16. That Formosa Plastics Corporation, Texas shall, by no later than March 1, 1986. have installed and thereafter maintain a pressure interlock to shut down all compressors when the vinyl chloride monomer recovery system reaches a pressure not to exceed 901 of the individual relief valve settings. 17. That Formosa Plastics Corporation, Texas shall, by no later than March 1, 1986, have installed and thereafter maintain a 2" bypass to the Incinera tor to open automatically when the vinyl chloride monomer recovery system reaches a pressure not to exceed 90% of the Individual relief-valve settings. 18. That Formosa Plastics Corporation, Texas shall, by no later than March 1, 1986, have installed and thereafter maintain a coonon header from recovery system equipment pressure relief valves to vent directly to gasholder PV304. 19. That Formosa Plastics Corporation, Texas shall, by no later than March 1, 1986, have installed and thereafter maintain a high pressure, high temperature interlock on purification column PC303 located in the polyvinyl chloride area of the vinyl-chloride monomer purification system to automatically block in the steam and stop feed to the column. 20. That Formosa Plastics Corporation, Texas shall, by no later than torch 1, 1986, have installed and continuously thereafter maintain a 2" header connecting the rectification system pressure relief valves to vent directly to gasholder PY304. 21. That Formosa Plastics Corporation, Texas shall, from the date of the signing of the judgment, begin to revise and update all standard operating procedures designed to prevent relief valve discharges and shall thereafter on a continuing basis keep such procedures revised and updated. These procedures shall include but are not limited to the "Rupture Oise and Relief Valve Inspection Testing Program" attached hereto and incorporated herein. 22. That Formosa Plastics Corporation, Texas shall, from the date of the signing of the judgment and thereafter, maintain training records and schedules' - on all employees stationed at the formosa Plastics plant in Point Comfort, Texas. 23. That Formosa Plastics Corporation, Texas shall by no later than October 31, 1985, have installed and thereafter maintain a high temperature' alarm on the quench liquid for columns VC 401A, B, and C in the vinyl chloride monomer plant. -4- scc 5-2174 24. That Formosa Plastics Corporation. Texas shall, from the date of the signing of this judgment and thereafter have compiled and begin to implement a preventive maintenance program. The program shall include but is not limited to the "Preventive Maintenance" program attached hereto and incorporated herein. 25. That Formosa Plastics Corporation, Texas shall immediately upon the signing of this judgment have Installed and thereafter maintain a high tray temperature alarm for purification colunrn VC 502 and 503 in the vinyl chloride monomer plant. 26. That Formosa Plastics Corporation, Texas shall, by no later than March 1, 1986, install and thereafter maintain a high pressure alarm on the caustic scrubber VY506 and bottoms tank W500 at the vinyl chloride monomer plant. Z7. That Formosa Plastics Corporation. Texas shall, by no later than March 1, 1986, have Installed and thereafter operate a second high level alarm on YY751 at the vinyl chloride monomer plant. 28. That Formosa Plastics Corporation, Texas shall, by no later than March 1, 1986, have Installed and thereafter operate a liquid balance line on caustic wash tank VV506 and caustic dryers YVS05A, B and C which will relieve to blow-down tank VV764 at a pressure below that of the individual relief valves at the vinyl chloride monomer plant. 29. That Formosa Plastics Corporation, Texas shall immediately upon the signing of this judgment and thereafter begin to monitor the emergency control panel back-up power on a normal workday basis at the vinyl chloride monomer plant. 30. That Formosa Plastics Corporation, Texas shall hereafter comply with 31 T.A.C. 301,20 which adopts National Emission Standards for Hazardous Air Pollutants (NESKAPS) promulgated by Environmental Protection Agency at 40 C.F.R. part 61. The Oefendant specifically waives the necessity to attach the regulations and incorporate them herein. 31. That Formosa plastics Corporation, Texas shall hereafter comply with TACB Rules 116.1, 116.4 and 116,5 of Regulation Vi. Force Ha.leure Provisions - ----- - 32. a. If any event occurs which causes or may cause a delay in compli* ance with the terms of this judgment, or which causes or may cause noncompliance 'with the terms of this judgment, the Oefendant shall notify the Attorney General of the State of Texas and TAC8, in writing within 10 days after the occurrence of -5- SCC 5-2175 such event, describing in detail the anticipated length of the delay, the extent of noncompliance, the precise cause or causes of the delay, the measures taken or to be taken to prevent or minimize any such delay and to comply with all requirements of this judgment as soon as passible. Failure by the Defendant to comply with the notice requirements of this paragraph shall render paragraphs b. and c. below void and of no effect as to the particular incident involved. b. If Plaintiff agrees that noncompliance has been caused by circum stances beyond the control of and without the fault of Defendant, then the parties shall submit to the Court a stipulation for extension of time for a particular requirement. If Plaintiff does not agree in writing, then Defendant may sub mit the matter to the Court for resolution within 30 days after the Defendant's notification of the event pursuant to paragraph a. above. If Defendant does not submit the matter to the Court within the prescribed 30 day period, the.event will be deemed not to justify an extension of time. c. The burden of proving that any delay or noncompliance is caused by circumstances beyond the control of a,nd without the fault of Defendant, and the duration and extent of the noncompliance attributable to such circumstances, shall rest with the Defendant, Trial shall be to the Court. A jury is hereby waived. Normal discovery shall be available. Nonavailability of funds will not be justification for extensions of time. Delay in achievement of one interim step under this judgment shall not necessarily justify or^excuse delay in achieve ment of subsequent steps. 33. Both parties reserve the right to petition the Court for dissolution or modification of this judgment according to the laws of this State and nothing herein shall relieve the defendant from complying with all rules, and regulations of the Texas Air Control Board and Tex.Rev.Civ.Stat.Ann. art. 4477-5. -6- scc 5-2176 34. Costs of court In this action are taxed against Defendant, Formosa Plastics Corporation, Texas. If any items of costs remain unpaid, let exe cution issue forthwith for its collection. Signed this 3/^~ day of 1985. -^1 M.S&c, JUDGE PRESIDING APPROVEO AS TO FORM ANO SUBSTANCE ANO ENTRY REQUESTED JIM MATTOX Attorney General of Texas OAVIO R. RICHARDS Executive Assistant Attorney General NANCY N. LYNCH Assistant Attorney General Chief, Environmental Protection Division a-- SUSAN M. 7HEISEN SBN 1983360S Assistant Attorney General Environmental Protection Olvision P.0. Box 12548 Austin, Texas 78711 (5121 475-1101 ATTORNEYS FOR PLAINTIFF SBN 06884000 ATTORNEY FOR DEFENDANT FORMOSA PLASTICS CORPORATION, TEXAS By David f. H. Cheng Executive Vice President * VOlJ(a -irr -------- C^lOCKj2nw_______ i CCT 3 1 B8S OUJEKAftRJS C.LLL, - vr : -7- SCC 5-2177