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S I D L E Y & A U S T I NA P A R T N E R S H I P I N C L U D I N G P R O F E S S I O N A L i O K P ? K A T I ONS

BANK ONE P L A Z A10 S . D E A R B O R N S T R E E T

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FOUNDED 1866W R I T E R S E - M A I L A D D R E S S

j s c h l i c k f t s i d l e y com

June 5, 2000

By Fax and Federal ExpressMaureen KatzTrial AttorneyUnited States Department of JusticeEnvironment & Natural Resources DivisionEnvironmental Enforcement SectionRoom 130731425 New York Avenue, N.W.Washington, DC. 20044-7611

Re: Fox River matterDear Maureen:

Appleton Papers Inc. and NCR Corp. (collectively "API/NCR") are veryconcerned that the United States Environmental Protection Agency and the Department of theinteriormayjjejieffotiating a "cash-out" settlement with U.S . Paper Mills Corp and_MenasjiaCorporation (collectively "U.S. Paper/Meqasha") before all the facts are known regarding~U SPaper' s/Menasha's liability for the activities of the former John Strange Mill In February 1999,we outlined for you the basis on which API/NCR claim that US Paper/Menasha bear substantialresponsibility for polychlorinated biphenyls ("PCB") contamination in the sediments of the FoxRiver We explained our paper industry experts' conclusions that given the products that theJohn Strange facility manufactured, its location, and its capacity, it likely consumed verysubstantial quantities of PCB-containing furnish in the form of (i) broke; (ii) pre-consumerconverter trim; and (iii) post-consumer paper.

Since our meeting, we have developed documentary evidence that thejohnStrange facility used PCB-containing paper as furnish. In August 1975, the WisconsinDepartment of Natural Resources held hearings to review and receive public comment uponproposed rules related to the discharge of PCBs into waters of the state Mr. Alien Schenck,Menasha's Vice President of Technical and Environmental, testified in opposition to theproposed regulations limiting PCBs in effluent. Mr. Schenck explained that as a consumer ofsignificant quantities of mixed fiber (25,000 tons of mixed paper per year or 30% of Menasha's

S I D L E Y & AUST IN C H I C A G OMaureen KatzJune 5, 2000Page 2

total furnish requirements), Menasha inevitably processed PCBs because there was no practicalmethod to select PCB free paper in bale form. Mr. Schenck further testified that the JohnStrange facility could not "stay competitive" if it were forced to switch to virgin fiber and thatsuch a switch would mean that 85,000 tons of wastepaper would have to be either landfilled orincinerated. We have enclosed Mr. Schenck's testimony on behalf of Menasha for yourconsideration.

Additionally, Menasha's response to a survey by Versar Inc in June 1976(enclosed) stated that the composition of "input raw material" had not changed recently It cantherefore be assumed that Mr Schenck's statement that mixed papers comprised 30% ofMenasha's total furnish requirements also held true for at least a portion ofjh^rejevant_tinie£>enod_ Thus, even if one assumes that Menasha did not recycle carbonless broke generated byAPI or pre-consumer converter trim, which assumption erroneously disregards paper industrypractice and economics, Menasha's use of mixed papers resulted in the discharge of PCBs to theFox River, by its own admission. We would be happy to meet with you in person to explain ourcalculations of the total PCBs likely discharged by Menasha based on their use of post-consumerfiber alone

The Schenck testimony, coupled with the information that Menasha provided toVersar, establishes that the John Strange facility likely used substantial quantities of PCB-containing post-consumer paper in its furnish. We believe that additional evidence will beunearthed establishing that this facility also used broke and PCB-containing pre-consumermaterial as part of its furnish. Given this information, any form of settlement with US.Paper/Menasha at this juncture would be unfair, unreasonable, and inconsistent with CERCLAWe request that a copy of this letter be placed into any administrative record being developed tosupport a settlement with US. Paper/Menasha.

We look forward to discussing these issues with youVery /truly yours,

J. Andrew Schlickmancc Roger Grimes

Joan Goldfarb

AR L\C. c-\6 6 2 1 ELECTRONIC O R I V £

SPRINGFIELD. V I RG IN IA : : i5 :

Jure 25, 1976

Mr. Mowry Ssith /Senior Vica PresidentMenasha CorporationP.O. Bex 36^/tfeenah., W^Joonsin 54956Di=r I1^. S- îith •

/As requested/ I am enclosing a ccpy of the types of inforraticr

Versar will need to generate the model c:i ?olyc.wu.3rinated biphenyls i.- r--.epulp and paper industry. _.__——_————-————•I am looking forward to visitr.g the John Strange Paper ard will

undoubtedly learn nsich. ~^Sincerely yours,

^closure

Bennett Ryani'cologist

^ —

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(^00502

r[R f\C.

1) PPCCOCTTCN (tsr-s cer day, tons per year)

2) Type of Product

3) Producticr. History - How has product: • T. riser, durir.7 -u-2 -^st 50Are Annual prod-. i: rticr. fig-^res available?

4) Water Ccntent of the finished product, ^f 77 7

5) Concentrations of PC3 in the final product.

6} E«?CT FAJ7 MAH5cIrtL5 - Hardwood Pulp (tar;v'day)

Soffthood Pulp ( ' )

Vtoste PaperNewsprint - /O ̂Corrugated - vj'O >_.Printing and Writi.-*g -/CTissue - 0%Mixed - JO

YEftflR /AC7) What data is available fsr the PC3 cer.tsr.ts of thesa ir.puts? //

8) Eas the input raw material been subject to a charge ir. ccrpcsiticnin the past? Is it varyirjg now? For e,xsr=;le, the prrpcrt-icn cf v:pulp to recycled pulp.

9) If wast-i papers are utilized, what Jclnd of a separatlcn scheme is used?0-

10) Are the input strsans monitored for PC3 content? How? //^

11) What are the inputs of chemicals required for productlcn (Ihs ofchanical per ton of production)? For pulping, for bleaching.

' ^

12) Are these chemicals checked for possible PC3 contamination? How?Frora who are these chemicals purchased?

f^/

H$ 00504

VER/AR LVC.12) Bow ruch intake water is associated per ten of production? Is the

water treated in any way?3WO

14} Is its PC3 ccr.tent measured? Kow?

. i wa -..-as filled by

r\R INC.19) What planned charges are being made to increase water req.rli.-xj?

OL.

0 7 /20) Wiat is the- daily volirae of discharge watar? JQ Q Q fl Q

21) Haw 3^ the discharge water treated?/

25) What planned changes to water handling and treatment ars being rnade?t^J^Xsuj^ — r-r

26) Ars there any incineration processes which night liberate PC3s to theatncsphere? What tyoe of stacic gas cleaning crocedure is utilized?

27) It has been intixated that PCBs might be forced in the bleaching stageof pulp preparation? Have before and after sampling and analysis beendone to eliminate this as a potential source?

28) De-inking plants may cone into contact with significant concentrationsof PC3s in their operation. What are the PC3 contents of their effluents?

u 5 00507

O/r CF

PihUc Hearing to Seview a.-xl fcceive

(H2'sJ Ir.to c>.e Xaiers ;i zn

FagAugu«t 28 & 29, 1975 1 to 75, inclusive

H7M00537

billty of all cf the PC3'j preser.t and I ccr.'t texw that this L§ a c^estiai t= be cor.v.J.K~BJexzrplfi L-. the Like Jtishî aa, laxe Superior tystorj. Hc«-ever, in t,*e river «vst£e«, u : .TCthe Milwaukee ?.iv«r syrtaa, and esaecijlly --p aitrre EsVerirocx ParX has lArge rav.fi cf air;la fact, they usually get the alrae bi.-rra in t-ieae rascr-.TSira wtvere these fish were tixen irst ato I dcn't tacw——I Garret say with any data ti-at the preserve cf s-^rerxifld ratarijl In t.'Te rl-.Tsricea or dees ret affect the biccsncer.traticn fjctcrs and thu Ls a very hari thi.-^ ts ?«t a ."js.-ji:the——help us t= interpret the I.ihrratary risults that «'r; g«rtj_- .̂

rtJ ir. vater. Hew——v^th wtut reaultj——ac=-jrir/ cf rtaultj car. '-cu cet ir. t.we ere —• ''. -:-r-

MR. Vtra: Well, I thinx I i.idi=»t«i, eertiir-ly wr^ei you crrt tic^r- at t-ujt ie-.-el,v« hr.-s, ; t.wj_->i, «rt=Ci»t«ly « SO perrer.t reiati-.-* a^r is t.V iita' Ard t.1-* «î ra, I V_u-.••-« in a Xixierna-Canish evaporatcr. ^»volucae i* then reducad to foxz ailliliten using a screogi of dry filters! air, ̂ s. ^^ analysis Is perfcraed en aPerXln-Elaer rodel 900 gaj cSroBatoijraph using • fiane-phDtecoetric detecccr in the phcsphc^^aacce. TJie i.-jrruBent !• equipped with an autooatic m-pi»- sugcerted fcr a 10 cicro liter Iroecrticoand a PerJcin-£Jjiier PIP 1 ga* dumatty afhirr data reducticn (ystaa. He use a six foot by one-fourth inch cliss oolUEB peeked with 4 percent SZ-30 and 6 percent OV-Z10 en 80 to ICO neshgas chroa Q fcr the oricirjtL analysis and a 6 foot by owfourth inch glass colum packed with1.9S peiueiit CV-17 and 1.5 percent OV-Z10 en gass chron Q 80 to 100 ire«h fcr ccnfirsatlcc. G*»Ugi naroTniFh ccaditiona are *• foUowa: the inlet tanpenczv if 250 Cecticraie, detects!tspenture is 240 degree* Cestignda. £>e own is ptu^aaged froa 200 degrees Centigrade to26S decree* Centigrade at four degree* per aizute. Carrier gxs ir nitrojen at a flow rate cf£0 »^ i ̂ T < E^T*« 4

eeoond portion o£ the extract 1* placed on a ooloae of rlcri*il, with

60

WTMOOS37

inch of •rr^'im iBi'f.rse at the ttp aad the terctoa of tha risriall fee feylaj purposes.TVs fracticr.a ar« collected fran the Flcrisil. da first !• el-jtad vith :CO silli-

lieera of 6 peii^te. ethyl ether la taxine and the aeccre with 2CO siLLtliters of SC ^e: j=-.t ethylether in hexone. Each of tie fractions is ccrecrtratai to itss than f-o « • • ; • ' • . -^-7 — t-esaae msr.ner ad used fcr the extract, diluted ta ~* -•"— ' •/ txs r' '!• ? • -^3 with ftcxare, *~-'_x->^j withCieldrin, that's the 6 peraest ether £ractj.cn, cr AlirL-., thit's the SO prrcer.t etier — "— • — a.-ti

in a 2 r -. 1] i \ • tar vtxl with a sepeun cap for cis chsssatojraphic analysis.Each fraction froa the flcr-Lsil ccium is a.-Aiy=«d u*ir** a Per>LL^--^rer rrHp'. 3 3 2 0gaa chroaatagrach equipped with a r«e— s=i-j=-. •--.-«• — -r sr^iricr, aut=atic ajrrslcr .̂-.t.-. 1C ^-— —

Uoer s>-n.-^e, rJ3 esiisrj iasdi.-̂ ts elactr=r. ca=nrre iatart^r^. Ani the sare ?3-i datarad-JCtisr. syrter. u used. Cil-^rj are both S feet ir/ a c-jirtcr irih glass. Crc is poc.« i-io^ua incl-jdas echeduled caiibratLcii o^ all instrv=ients usad in the an&iyaiato insure that they are verking prsperly. Tto movitsa- posaihle ccnt=dnaticn e2 the csrpLea «\i-Lethey are being analysad, reaqvsc hLarJca are rjn after eacii rt*p of the anaJ.yr-..- l̂ process, ^at'extraoticn, Flerisil chrcratography, collcic acid crxorjaa^npry «--ri gu i_-LLJta^Taphy. SmrMrplfs are divtdad in hilf and CM £racricn is cpiXed with a krrwr anojit of tne cu.;i.«nri we'reanalytin? fcr. The reocvery ci th« spi)ce insures that there are no unusual cherums in thethat would interfere with the analysis. As a final cheek we analyse tl-xee «andjrcj6 with «acho£ up to 35 coiqples to insure that the totaJ. analysis CC±OTC is wcrXxog properly.

A prccadiare s-oil Inr to this la being used by the State < therefcr«, in svsary,It appear* that there is no particular prahlaa with analy l̂n? water lacples for indi'/idual PC3'»am »: ai; Ltatlons a&ow .5 microgcisis per ^*g»r or for total PCB's at ccacentraticrj above .05 oicra-graca par liter.

9auk you, sir. Ooe« the Oeparta«re bcw any queatlons?ML JOZBaSTi Mo qiMT fi'iis.OAKDCU Co you hw» a copy of that preaeotatlm?CsanJt you. Ara than any other queaticca. UaatJc you very nnrh. sir.Mr. r'»'» !« Qrly.MR- EUUT: My caw is franeis Early. I 'a a physical •cleetLrt is. ttm ProoaM Controlat the National EnforcaBsnt Inv^stî ationa Center cf tba C&vlrczneB&al Prot«ctica Aijancy-I an here today to address the prcbLsa of redod.-.? tbe discharge o£ polychler^vatedbiphenyls to p:i-.Lir waters. A preblcB oi real eencera at this t^x nut be the relatively h^~ •

diacbacv* ooroectraticoa sboMi tea certain pulp and paper •I'n* »*»ij-h are deinlcin? paper.&1

WTHOOS98W TM00598

Tvtnk you.EOMSJd: CD you have a ocpy of yrvr statsaer.t?ttank you. I appreciate your afpeara.-we.Mr. W. Alien SciencX. present?Plaaae Identify yourself and .••

fsr the Jebn Strar»je Paceztcari Division cf Mer.is.Si drTMs paperbcari siill ramfaersres oarii.--aticn hr-cxari £r= recycled pe.Ter a.ti has d=-£f=r over 25 years. TJO hvadrad and fifty pec?I« are ecsl̂ ytsi ac tiis laca-i.-: :. •?payroll is S3 .-'! :•',-.

U? ta January 1. 1773, Jefcn SSrsrige b«i invested $400 , CCC ir. N—CT-^ dollirs will be srer.t ir. 1975 . TTese exranii-are a ti?h per=esta;e cf ti* cat warsh of the sill. 'C-* pi« ij ir.criers. Appr=xi.T*t*ly 7S,CCO tcrj cf paperioari are pnriu.-edprincipal products are tube arc can stooc, cai-sri stooc, cMptnari aod cylinder

producu are, and hitrarl rally have beea aade froa 100 percent recycled fiber.grades of recycled fibers used are 50,000 '•'-"T cf oli g^=- •ug^rjH. ?^iSflj? — ss ef_riv*r' oaser,8 , 0 0 0 tcrj of news, aeae pradvicta are jxrsfcaaai priacipaUy t^roo^n recycled fiaer dealers.

tto PC3'« arc used in the manufacture of ccriL-jtici bcx board. "Ciere are no Vnouc-PO'a in elactrical cr hydrmilir eijuipBent TLi the aill. Cf UM total anrual product at JoinStrange, about 20 percent is utilised ia food pacJagi.- .̂ Ccebinaticn bcxboard for foodi* ""^ firon recycled fibers elected to *"*-~i-» pc3'e. Board Wviiii «̂ -̂~— -••« *^f_ part* per ~ ' '- 'tbe PCS is diverted to oocfood ead uae>.

Ten paru per mllllm is the interia level set by the Food and Cru?for food pacfcaci.19 materials. Bqpezienoe In the **«->-*•< — >•» of these grades has deacnstratedin the oour&e of 24-hour run cr. IcnQcr, peaks of PCS'a abova tea parts per nillicn can occur.Uowver, the frequency and intecsity of these peaks has decreased dr3BatlcaJJ.y since 1371, whenPC3'a stopped entering the vutcptper use and reuse cycle. TMs trcrd if industrywide. Cat*collected frca the majority of certinatien bcxbcard «

It LJ requested that the proposed ruHaga net be i=ple=er.tsi . It la rocr-icitad thatthe State of WIjc=nai.i. through 2epar=ae.-.t ci lirjral Sesc--=res, devise a ; — "—•,— ' =cc.-xxJ cfncritoring PC3'i to be certain that the dourward eresd eer.-.iriif n ac expected.

TJvaalc you.DCVtCiul: SasJc you very ach. r.-nM you provide a copy c5 that at ycur corver.ie.-ee.MR. SCSOC: —— I'll get it retyped. ,EC«2d: CiarJc you very axA, tir.Milter. Lcraan.K3. LCRftN: *!y fuse is Miltai Lcrran, presiie.Tt cf Lera.-. Ircri a.nd Metii C==i.-/,

established in 13 L3. Cur h-g'ren is • s=r=? processor ef ferrous, ncr.ferr=u3 and iiier sera?. :.-.li-,TCr.'« rp-r-; it's scrap iron, scrap Mtals, such as c=7?er, trajs, al:2ri.-=, rirc, lejd, a.-xi scr^p=ev=pa?er, cardicari , ladder grades, tone of the: called" the «ilfite graies. V* e=plcy 65 to 8 :pecple. Our pa/roll i* $i22,379 per year. Our rtatz a.Td L=c.\I taxe« cnly list year *«r= $ 5 3 , 2 5 4 .

Any material v« y-nm, portirularly u&stzpaper, wdxicea the aanr-.t e* lird mq--iricr the Landfill us*. B» statistics thAt I ^Jv« shew that 60 ^jei-aiL rf the solii ̂ astc in tr*l̂ dfills is ii] ,«jsed of p»p«r fi*»r. ??* cencl-n-.-r. I hcpe that ycu drav la that we arethe largest nr.-te rvir'i-.— i n, trolnjiat, ard/cr

of the natis* of this hearing, I will A»IJ en the tartep^xr aspect.cur preaer.t pler.t in Fcrt A-teintrr., by means of industriAl revooe bends, we are buildin; a half amlllicn dollar plant fee the recycllrq of wastepaper in Jan«sville, wlaccnsin. Aside iron thisprepared text, it's Irigfttening to locw that I'a -Vfear is that I have an example of a 100-trn — could be athousends of tecs of paper. It could bebet-mis* ecoeviere there wee 10 |amds or 100 r"1^4" of cartcnless paper. I dcn't taow thechemistry of the specific KB. I'm not menticning pure KB. But jnst thlok of it, naybe SOnmarris of carbcrJ rss paper and cay 100 or 1,000 teas of paper. If it's possibly there, we'dhave to throw it in a landfill.«7

HTM00604