DRAFT 10/7/88 En v i r o n m e n t a l health and Sa f e t y rfvtfw R&E Current/retirement Executive Team meeting O c t o b e r 12, 1988 Mo b i l T e c h n i c a l C e n t e r , Pr i n c e t o n J. P. M c C u l l o u g h Go o d A f t e r n o o n , I w o u l d l i k e t o b r i n g y o u up TO DATE ON OUR RECENTLY RENAMED ENVIRONMENTAL Health and Sa f e t y D e p a r t m e n t ; briefly cover SOME RECENT ACCOMPLISHMENTS; AND THEN, GIVE YOU SOME OF MY VISION OF THE FUTURE. LET'S SLIDE 1 START WITH THE NEW ENVIRONMENTAL, HEALTH AND A. D. LITTLE Sa f e t y O r g a n i z a t i o n , STUDY a little o v e r a year AGO, WE ASKED ARTHUR D. LITTLE TO REAPPRAISE, IN LIGHT OF TODAY'S COST CONTAINMENT ENVIRON­ MENT; THE ORGANIZATION, STAFFING, FUNCTIONS AND EFFECTIVENESS OF MOBIL'S ENVIRONMENTAL, He a l t h and Sa f e t y activities at the corporate AND PROFIT CENTER LEVELS. ADL CONDUCTED - 10 - WORKING WITH OVER 50 MAJOR FACILITIES WE HELPED THEM DEVELOP INVENTORIES OF MATERIALS, WHERE THESE MATERIALS ARE USED, WHERE AND HOW MUCH EMISSIONS OCCUR AND PROVIDED THESE DATA IN FORMS USEFUL FOR EMPLOYEES AND PUBLIC officials. Th i s "e x p e r t s y s t e m " a l l o w e d OPERATING DIVISIONS WORLDWIDE TO COMPLY WITH NEW REPORTING REQUIREMENTS SIMILAR TO THE U.S. Superfund amendments Reauthorization act (SARA) RIGHT-TO-KNOW PROVISIONS AND OSHA'S HAZARD COMMUNICATIONS STANDARD. SLIDE 9 O u r t o x i c o l o g y /p r o d u c t s a f e t y s u p p o r t i s o n l y TOXICOLOGY/ POSSIBLE THROUGH THE PARTNERSHIP WITH THE PRODUCT SAFETY M o b i l La b s a n d o p e r a t i n g D i v i s i o n s o n a SUPPORT SUMMARY REGULAR BASIS. CENTRALIZING THIS ACTIVITY ELIMINATES COSTLY DUPLICATION OF EFFORT WHEN COMPLYING WITH NEW COMPLEX RULES, AND PROVIDES OVERALL SAVINGS TO MOBIL. I THINK THIS CENTER OF EXCELLENCE OFFERS ANOTHER STRONG MOBIL TECHNOLOGY EDGE THAT IS JUST BEGINNING TO BE EXPLOITED. SLIDE 10 NOW LET’ S TALK ABOUT SOME ENVIRONMENTAL, NEWSWEEK - THE HEALTH AND SAFETY ISSUES ON THE LEADING EDGE GREENHOUSE OF TECHNOLOGY. FOUR MONTHS AGO. WHO WOULD EFFECT HAVE SAID THE "GREENHOUSE EFFECT" WOULD HAVE - 11 - GOTTEN SO MUCH COVERAGE BY THE M E D I A AND BECOME A S U B JECT OF CONGRESSIONAL HEARINGS. TODAY, IT IS G E T TING A LOT OF ATTENTION PARTLY BECAUSE OF THE DROUGHT A N D THE HOT SUMMER. HOWEVER, IT'S BEEN HIGH ON THE ENVIRON­ MENTALIST'S AGENDA OF EMERGING ISSUES FOR AT LEAST TWO YEARS. H O W WILL THE GREENHOUSE Effect influence our industry? THAT'S D I F F I C U L T TO SAY. At t h i s p o i n t , FOR STARTERS, IT IS NOT A PROVEN SCIENTIFIC FACT THAT WE ARE EXPERIENCING A GREENHOUSE EFFECT. M A Y B E WE ARE IN THE MIDDLE OF ONE OF NATURE'S NORMAL CYCLES. SLIDE 11 B U T HERE'S A HEADLINE FROM THE NY T I M E S IN NY TIMES June that suggests that a sharp cut in the GLOBAL W A R M I N G USE OF FOSSIL FUELS, INCLUDING PETROLEUM, IS THE ANSWER TO THE PROBLEM. AND OZONE, WHICH MAY BE A G G R A V A T E D BY THE G R E E N H O U S E EFFECT, IS ANOTHER ISSUE THAT CONTAINS S I M ILAR LONG TERM OVERTONES. The p o t e n t i a l i m p l i c a t i o n s of t h e p r e s e n t and NEWLY EMERGING ISSUES ARE SO I MPORTANT THAT SENIOR M A N A G E M E N T HAS ASKED R&E FOR AN ASSESS­ MENT OF AN ENVIRONMENTAL W O R S T CASE SCENARIO 12 - Ca l i f o r n i a , a h i g h l y s e n s i t i v e b e l l for WEATHER STATE, TO HELP GAUGE THEIR IMPACT ON M o b i l 's o p e r a t i o n s t h e r e . W e 'r e j u s t b e g i n ­ ning THIS STUDY AND WILL BE WORKING CLOSELY WITH THE OPERATING DIVISIONS TO DEVELOP THE SCENARIO. SLIDE 12 FOR THE PURPOSES OF OUR TALK, HOWEVER, LET ME CLEAN AIR BY PROPOSE A POSSIBLE WORST CASE SCENARIO FOR THE YEAR 2007 ACHIEVING CLEAN AIR BY THE YEAR 2007 IN THREE STAGES AS IT WOULD AFFECT OUR INDUSTRY. SLIDE 13 STAGE I BY 1993 S t a g e 1 - t o b e a c h i e v e d b y 1993: 1) NEW CONTROL MEASURES TO REDUCE EMISSIONS FROM REFINERY HEATERS, BOILERS, OIL FIELD STEAM GENERATORS, VAPOR RECOVERY SYSTEMS, VALVES, PUMPS AND COMPRESSORS. 2) ESTABLISH NEW CONTROL MEASURES ON NITROGEN OXIDES FROM BOILERS AND FURNACES. 3) P h a s e o u t t h e u s e o f f u e l o i l b y f i x e d SOURCES. 4) I m p o s e n e w c o n t r o l m e a s u r e s o n n e w VEHICLES. REOUIRE THE USE OF CLEAN FUELS (E.G., METHANOL, FUEL CELLS OR ELECTRIC POWER) FOR FLEETS, AND OTHER CONTROLS ON PLEASURE BOATS, AIRCRAFT, AND SHIPS. - 13 - SLIDE m AND THAT'S ONLY STAGE I. S T A G E II BY 1998 TO BE COMPLETED BY 1998: NOW FOR STAGE II, 1) CONVERT 4 0 % OF THE PASSENGER VEHICLES AND 7 0 % OF FREIGHT VEHICLES TO OPERATE ON CLEAN FUELS. ALL DIESEL p o w e r e d TRANSIT BUSES SWITCHED TO CLEAN FUELS. 2) M a i n t a i n t h e n u m b e r o f v e h i c l e m i l e s TRAVELED AND THE NUMBER OF TRIPS AT CURRENT LEVELS. IF NECESSARY, CONSIDER RESTRICTING DRIVING, LICENSING AND VEHICLE REGISTRATION. 3) M i n i m i z e i n c r e a s e s i n e m i s s i o n s f r o m EXISTING STATIONARY SOURCES. 4) R e d u c t i o n o f r e f i n i n g a n d d i s t r i b u t i o n ACTIVITIES - MAINTAIN THE 1985 LEVEL. S L I D E 15 A n d f o r t h e c o u p d e g r a c e - S t a g e III - b y t h e STAGE III - 2000 YEAR 2007 AND BEYOND: A N D BEYOND 1) TOTAL PHASE OUT OF PETROLEUM REFINING, PRODUCTION AND DISTRIBUTION. 2) Pr o m o t i o n of fuel cell t e c h n o l o g y . ? - m 3) - In c r e a s e d p e n e t r a t i o n of z e r o -emission VEHICLES. NOW, THOSE OF YOU, LIKE ME, WHO SAID THEY WOULD NEVER BAN THE USE OF LEAD, WILL SAY — Pr e p o s t e r o u s ! a twilight zone scenario! It WILL NEVER HAPPEN! SLIDE 16 W e l l , w h a t I' v e j u s t r e a d i s a v e r b a t i m PATH TO CLEAN EXTRACT FROM THE 500 PAGE D R A F T SOUTHERN AIR Ca l i f o r n i a Air Qu a l i t y r e p o r t e n t i t l e d : to Clean a i r : policy Pr o p o s a l s . Pa t h I' m s u r e SOME OF YOU ARE FAMILIAR WITH THE REPORT. USM&R IS LEADING MOBIL'S RESPONSE TO THESE PROPOSALS, ALONG WITH THE REST OF INDUSTRY. WE h o p e , a n d r e a l l y e x p e c t , t h a t a m o r e RATIONAL PLAN WILL EMERGE FROM THE UPCOMING HEARINGS, WHICH WILL BE HELD THIS FALL. An o t h e r l e a d i n g edge i s s u e t h a t r e l i e s o n the MOBIL TECHNICAL CENTER OF EXCELLENCE, INVOLVES SLIDE 17 RISK ASSESSMENT. BENZENE RISK EXPERTISE OF OUR TOXICOLOGISTS, AUTOMOTIVE HERE WE HAVE USED THE MANAGEMENT SPECIALISTS, AND CHEMISTS COORDINATED BY OUR ISSUES Pr o d u c t S a f e t y m a n a g e r t o a d d r e s s t h e b e n z e n e RISK MANAGEMENT ISSUES. CALIFORNIA NOT ONLY - 15 - has the Pa t h t o C l e a n A i r , b u t i s c o n s i d e r i n g REDUCING THE ALLOWABLE MAXIMUM BENZENE CONTENT OF GASOLINE TO 0.6 PERCENT BY VOLUME. MANY STATES AND THE FEDERAL GOVERNMENT ARE CONSIDERING GROUNDWATER CLEAN UP STANDARDS FOR BENZENE CONTAMINATION TO 1 PART PER BILLION. WE b e l i e v e t h i s i s w e l l b e l o w a t h r e s h o l d f or ANY HARM TO HUMAN HEALTH. WE ALSO ARE ALERT EPA'S DESIRE TO FURTHER CONTROL REFINERY EMISSIONS IN ATTEMPTS TO REDUCE THE POTENTIAL FOR BENZENE TO HARM HUMANS. SLIDE 18 MOBIL LED THE API BENZENE RISK ASSESSMENT API BENZENE RISK PROJECT IN COOPERATION WITH THE CHEMICAL ASSESSMENT M a n u f a c t u r e r s a s s o c i a t i o n a n d t h e W e s t e r n O il PROJECT and Ga s a s s o c i a t i o n , a m a j o r p a r t o f t h i s PROJECT WAS ASSIGNMENT TO CLEMENT'S ASSOCIATES TO DEVELOP A NEW LINEAR RISK MODEL BASED ON AVAILABLE BIOLOGICAL SCIENCE FROM HUMAN AND ANIMAL STUDIES ON BENZENE INDUCED LEUKEMIA. SLIDE 19 The n e x t slide shows the benzene c o n centration BENZENE CONCEN­ IN AIR FOR AN ESTIMATED 1 IN A MILLION RISK OF TRATION IN DEATH FROM LEUKEMIA. AIR FOR ESTIMATE BASED ON ANIMAL STUDIES INDICATES THE 1X106 RISK ALLOWABLE LEVEL WOULD BE 0.0006 PARTS PER BILLION 8ENZENE. CALIFORNIA'S RISK EPA'S 1984 RISK ASSESSMENT, - 16 - USING A LINEAR MODEL DOWN TO ZERO. ESTIMATES THE SAME VALUE AT 0.04 PARTS PER BILLION. BY USING MORE REASONABLE ASSUMPTIONS AND RECOGNIZING MORE STATISTICAL VARIATION. C l e m e n t 's u p d a t e o f t h e E P A e s t i m a t e (u s i n g EPA METHODS) IN 1985 SHOWS 0.5 PART PER BILLION BENZENE. THE NON-LINEAR MODEL, BASED ON BIOCHEMICAL PHENOMENA, DEMONSTRATES THAT THE BENZENE CONCENTRATION IS 80 PARTS PER BILLION. W E ARE CONTINUING TO WORK WITH THE REGULATORS T O G A I N A C C E P T A N C E OF B E T T E R R I S K A0S S E S S M E N T S B A S E D ON S O U N D S C I E N C E A N D N O T A R B I T R A R Y EXTRAPOLATION INTO UNKNOWN REGIONS. THESE T Y P E OF A C T I V I T I E S C A N H E L P L E A D TO MORE R E A S O N A B L E R E G U L A T I O N S OF I M P O R T A N T T R A C E E L E M E N T S A N D P E T R O L E U M P R O D U C T S T H A T A R E FOUND IN A I R T H R O U G H O U T T H E WORLD. These cutting edged issues also demonstrate my P H I L O S O P H Y A N D T H A T OF T H E W H O L E E N V I R O N ­ MENTAL, H e a l t h a n d Sa f e t y D e p a r t m e n t t h a t M O B I L IS D I F F E R E N T , H A S BEEN, A N D S H O U L D C O N T I N U E T O BE D I F F E R E N T , TORS. FROM OUR CO M P E T I ­ W E U S E O U R T E C H N O L O G Y IN E N V I R O N M E N T A L , - 17 - H e a l t h a n d Sa f e t y a r e a s to d e v e l o p products THAT ARE SAFER AND CAN BE MARKETED WITH A COMPETITIVE EDGE. WE ALSO ARE NOT SATISFIED WITH JUST TESTING FOR TESTING SAKE. MOBIL'S RESEARCH PHILOSOPHY FLOWS INTO OUR TOXICOLOGY, PRODUCT SAFETY AND ENVIRONMENTAL SCIENCE EFFORTS TO UNDERSTAND WHY AND HOW THINGS WORK SO THAT WE CAN DEVELOP NEW PRODUCTS TO ADDRESS GROWING PUBLIC CONCERNS WITH EHS ISSUES SLIDE 20 The key f o r w a r d e n v i r o n m e n t a l t r e n d s t h a t we KEY ENVIRON­ SEE ARE PRESSURES TOWARD ZERO RISK-ZERO MENTAL TRENDS EMISSIONS INTO THE AIR, WATER AND NO WASTES. WE a l s o s e e i n c r e a s e d p u b l i c i n v o l v e m e n t i n EVERY ASPECT OF OUR BUSINESS THROUGH EXPANDING RIGHT TO KNOW LEGISLATION AT THE STATE, NATIONAL AND INTERNATIONAL LEVELS. FINALLY, WE BELIEVE THERE IS A POTENTIAL FOR EHS ISSUES TO MAKE FUNDAMENTAL CHANGES IN THE OIL AND CHEMICAL BUSINESS OPERATIONS. SLIDE 21 I TOLD YOU OF SOME OF THE PRESSURES, SUCH AS NEW PRESSURES - the NEXT 5-10 YEARS Ca l i f o r n i a w o r s t c a s e p a t h t o c l e a n a i r . Bu t , even if b a n n i n g of r e f i n i n g and oil PRODUCTION, DOES NOT HAPPEN, WE CAN CERTAINLY EXPECT NEW PRESSURES OVER THE NEXT FIVE (5) TO \ - 18 - TEN (10) YEARS. S O M E OF T H E M W I L L BE R E D U C T I O N IN A R O M A T I C AND B E N Z E N E C O N T E N T OF GASOL I N E ; F U R T H E R R E D U C T I O N IN S T A T I O N A R Y AND M O B I L E S O U R C E EMISSIONS; MORE S T U D I E S ON THE A L L E G E D H E A L T H R I S K S OF P E T R O L E U M PRODUCTS; N E W R E F E R E N D U M I S S U E S LIKE C A L I F O R N I A ' S P R O P O S I T I O N 65; AND NEW C L E A N FUEL PROPOSALS FOR M E T H A N O L F U E L E D VEHICLES. FUEL CELLS. E L E C T R I C CARS, AND M A Y B E EVEN S O L A R POWER. NOW. I W I L L BE G L A D TO A N S W E R ANY QUESTIONS T H A T YOU MAY HAVE. J.V. D’Ambrisi Environmental, Health and Safety Department Mobil Oil Corporation Planning and Communications Coordination Budget and Objectives Assumptions Product Safety Information Safety and Industrial Hygiene Risk Management Technology Coordination Oil Spill, Crisis and Disaster Preparedness Legislative and Regulatory Coordination EHS Compliance Superfund Management Toxicology Technical Service and Research b 0 8 16 Newsweek "the Greenhouse Effect Global W arm ing lia s Begun, Expert Tells Senate Sharp Cut in Burning o f Fossil Fuels Is Urged to B attle S hift in Climate ■y m il i r s iia b i im » WASHING 11IN. lu n r 2 3 - I h e e a ith G lo b a l W a rm in g : G re e n h o u s e E ffe c t? ............ A -. .1 I i . i '. i 'I i ih * IlH- I i i s I liv e m o n t h * n l I 9 a 8 III,. q io lM l .IVIM.IIII- I x m ii 1 9 5 0 l o i9 6 0 t i l l • l i n li ii’i i i r . i '. Sm nee J s m rx I H . w x e n ,* n d S e t q e i L e b e d e t l has h e rn w arm er m the fir s t liv e m onth* o I th is ye a r than in any n o n p a ra b le perio d s u ite m easurem ents began I N ye a r* ago. and the hiK>M-r te m p e ra tu re * ra n now be a ttrib u te d lo a long r ip e r ted g lo b a l w arm ing trend linked to p ^ lu to m . a spare agent y st le n tist re p o tte d today. U n til now. scientists have been ra u Im kis about a iln h u tm g ris in g global irm p e ra iu ie s » l le re n t years to the predicted g lo lia l w arm m g caused h y p o llu ta n ts n i the .ionosphere. know n as the "greenhouse e lle r l.” But today Dr. Jam e* E llansen o t the N ational Aernn a in irs and Spare A dm m m r anon to ld a Congressional t o m m itie e th a t M was 99 percent re rta m th a t the w arm m g tre n d w as not a n a tu ra l v a ria tio n but w as caused by a buildup o f carbon d m iid e and other a rtific ia l gases m the atmosphere I ■Milin o r it ■*' .