NEIC
         EPA-33119-99-001
         MULTIMEDIA COMPLIANCE MONITORING
         INVESTIGATION PROTOCOL FOR THE
         SHIP SCRAPPING INDUSTRY
         February 1999
       National Enforcement Investigations Center, Denver
dS. Environmental Protection Agency
                                    Office of Enforcement

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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE
     EPA-331 / 9-99-001

     MULTIMEDIA COMPLIANCE MONITORING
     INVESTIGATION PROTOCOL FOR THE
     SHIP SCRAPPING INDUSTRY
     February 1999
 John Ellison
 Larry Strattan
    NATIONAL ENFORCEMENT INVESTIGATIONS CENTER
                  Diana A. Love, Director
                    Denver, Colorado

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                         CONTENTS

INTRODUCTION	4

     PURPOSE AND SCOPE OF THIS MANUAL  	4
     OVERVIEW OF THE SHIP SCRAPPING INDUSTRY	7

INSPECTION CONSIDERATIONS 	13

     INSPECTION OBJECTIVES 	13
     INVESTIGATION METHODS 	14
     PREINSPECTION REVIEW	14
     ON-SITE INSPECTION	15

          Clean Air Act	16
          Clean Water Act	20
          Safe Drinking Water Act including Underground Injection
           Control and Public Water Supply	23
          Hazardous Waste (RCRA)	24
          Underground Storage Tanks	28
          TSCA PCB Regulations	29
          Conducting Laboratory Audits	33
          EPCRA	38
          FIFRA	39
          Other/Miscellaneous 	39

   •  EXIT CONFERENCE  	39
     INVESTIGATION REPORT 	40


REFERENCES
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                       CONTENTS (continued)

APPENDICES

A     Sources of Summaries of Applicable Environmental Laws
B     Safety Plan
C     Examples of State and Federal (NESHAP) Asbestos Checklists
D     Request for Technical Proposal
E     Ship Scrapping and PCBs - Background Paper and Administrator's
       Factsheet
F     November 30, 1995 Letter to MARAD
G     August 5, 1996 Response to MARAD Extension Letter


TABLES

1     Major Waste Streams/Sources	8
2     RCRA Generator Requirements  	24
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                           INTRODUCTION

               SCOPE OF THIS
      At the request of the EPA Office  of Enforcement and Compliance
Assurance, the National  Enforcement  Investigations  Center (NEIC)  has
compiled a multimedia compliance monitoring investigation protocol for the ship
scrapping industry.  This protocol is intended as a guide for investigators who
conduct multimedia environmental compliance investigations of ship scrapping
facilities that discharge, emit, prepare, manage, store, or dispose of pollutants
regulated by federal, state, or local environmental statutes and requirements.
Investigative methods  are presented that integrate enforcement  program
requirements for air, water, solid waste, pesticides, and toxic substances. This
manual describes general activities and functions of multimedia investigations,
provides  information on special features  of specific  media  and  associated
statutes, and contains an overview of the ship scrapping industry. This manual
is intended to supplement the various media-specific investigation guides listed
in the reference section and any regional, state, or local guides not referenced.

      Multimedia compliance  investigations are intended to  determine a
facility's compliance status with applicable laws, regulations, and  permits.
Appendix A contains a source list of summaries for applicable environmental
laws which EPA administers and enforces.  Inspection emphasis should be
identifying violations of regulations, permits, approvals, orders, and consent
decrees, and  the underlying causes of such violations.  Investigators should
thoroughly identify and document violations and problems that have existing
or potential effect on human health and/or the environment as well as others.
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      Multimedia investigations are conducted as a series of tasks or phases,
which usually include:

      •     Determination of target facility/proj ect request
      •     Identification of specific objectives
      •     Project team formation
      •     Background information review
      •     Project plan preparation
      •     On-site field inspection
      •     Report preparation
      •     Enforcement case support (varies and will not be addressed in this
            manual)

These phases  are discussed in detail  in  the revised March 1992 "NEIC
Multimedia Investigation Manual"  [Appendix A].  The protocol advocates a
multimedia approach, but individual media inspections can always be conducted
at different times.1

      All investigations should result in the generation of a written report that
documents noncompliance  or  other areas  of concern  identified  during the
investigation.   Areas of concern are inspection  observations of potential
problems that could result in environmental harm, noncompliance with permit
or regulatory requirements, or are areas associated with pollution prevention
issues.  This manual identifies multimedia objectives and focuses on specific
1      The protocol in this ship scrapping manual has been developed from inspections of three
      ship scrapping facilities located at the Port of Brownsville, Texas.  This draft protocol
      was reviewed by EPA Regional offices that cover geographic areas where shipbreaking
      may occur, for input to present a more comprehensive perspective on the industry.
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environmental laws and associated statutes applicable to the ship scrapping

industry.


      Ship scrapping operations are of environmental concern because they are

regulated by a number of statutes,  and generate  large amounts of waste,

including asbestos and PCBs. Investigations of ship scrapping facilities are

similar   to   other  comprehensive  multimedia  compliance  monitoring

investigations, and typical objectives would be to determine compliance with the

following:
           Air pollution control regulations including National  Emission
           Standards for Hazardous Air Pollutants (NESHAP)

           Water pollution control regulations, including National Pollution
           Discharge Elimination System (NPDES) permit requirements,
           pretreatment requirements, storm water requirements, and Spill
           Prevention Control and Countermeasures (SPCC) regulations

           Safe Drinking Water Act, including Underground Injection Control
           and Public Water Supply

           Solid and hazardous waste management regulations,  including
           Land Disposal Restrictions (LDR)

           Underground Storage Tank (UST) regulations

           Toxic Substances Control Act (TSCA) regulations

           Emergency Planning and Community Right-to-Know Act (EPCRA)
           and Comprehensive Environmental Response, Compensation, and
           Liability Act (CERCLA) § 103
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OVERVIEW OF THE SHIP SCRAPPING INDUSTRY
      Ship scrapping is the process of dismantling ships for recovery of scrap
steel, copper, and other metals. The standard industrial code (SIC) for ship
scrapping is 4499 (ship dismantling or shipbreaking). Although shipbreaking
can be done at a shipyard, it is more often conducted at less developed facilities.
For example, the shipbreaking process on the Gulf Coast at Brownsville, Texas
is performed with minimal investment in infrastructure.  All the sites have slips
where most of the shipbreaking is performed. The slips are excavated inward
from the ship channel. The slips are generally 400 to 700 feet long, and 100 to
120 feet wide at the slip entrance from the ship channel,  and are  of soil
construction. The slips are dredged openings in the bank of the ship channel
and decrease in depth going away from the ship channel. A large winch at the
head of the slip is used to beach/ground the vessel and drag the hull farther and
farther into the slip as work progresses.

      The three Gulf Coast ship  scrappers have minimal on-shore support
facilities, a few buildings, trailers, and tanks. Shipyards, where ship building
and repair occurs, are much different from ship scrapping operations.  For
example, Portsmouth Naval Shipyard, Kittery, Maine; Philadelphia Naval
Shipyard, Philadelphia, Pennsylvania; and Norfolk Naval Shipyard, Norfolk,
Virginia all have extensive shore facilities to support ship building and repair
activities. There are numerous shops for the technical trades and many highly
skilled workers.  In  contrast, ship scrappers hire  mostly unskilled or semi-
skilled workers with minimal training.  In some ship scrapping facilities, the
workers are  likely to be non-English speaking with bilingual  supervisors.

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Inspection teams should be aware of potential language barriers in questioning
workers.

      Ship scrapping can be conducted by different methods, but the Gulf Coast
ship scrapping operations observed in Brownsville initiated the process with the
ship moored, not beached. After mooring the vessel, the ship scrappers must
locate or prepare a ship's diagram of all rooms, compartments, tanks, and
storage areas. Although the Navy should provide these diagrams for its ships,
some  of the older "mothballed" vessels are received for scrapping without
diagrams.  Areas which may contain hazardous materials such as fuels, oils,
asbestos, PCBs, and hazardous waste  are reportedly identified. Fuels and oils
are pumped out of the onboard tanks and transported to reclaimers. Then, a
marine chemist (the marine equivalent of an industrial hygienist) is contracted
to certify that the ship is fuel-free, permitting the issuance of hot work permits.
Hot work permits allow cutting torches and saws to be used to dismantle the
ship.  The hot work permits do not deal with environmental  concerns such as
cutting through lead or PCBs present on painted surfaces. The Coast Guard
requires floating booms be placed around the moored vessels to contain any
spills.

      Bilge and ballast water may be removed from the vessel when fuels are
removed or later. Oily water and fire control water also accumulates during the
ship scrapping process.  These waste waters may be sent off-site for treatment
and disposal or treated on-site.

      The Brownsville facilities that NEIC inspected all had large liquid oxygen
tanks with vaporization radiators connected to underground  piping to provide
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oxygen for the cutting torches. The fuel, either natural gas or propane, was also
supplied by underground piping extending to the edge of the slip. Material is
removed from vessels by either collecting segregated smaller items in containers
placed on the deck, or by cutting room-sized pieces from the vessel and removing
them by mobile, track-mounted cranes. The large pieces are placed on the shore
to be cut into smaller pieces appropriate for shipment as scrap metal (smaller
than 2 or 3 feet by 5 feet for steel plate). The area parallel  to the slip on each
side is kept clear for the crane or vehicles.  Pieces are cut from the vessel
starting at the bow and the top, resulting in a diagonal plane of progression
toward the stern of the vessel.

      Sampling to detect the presence of polychlorinated biphenyls (PCBs) and
asbestos is usually performed one deck at a time. On each deck, work proceeds
from bow to stern. Necessary removals are performed shortly before the actual
cutting of the ship occurs. First, attached non-metal wall coverings, dividers,
and other items to be landfilled would be collected into containers on the open
deck.  Remaining accessible PCB-containing electrical cables would also be
removed at this time and placed into a separate container on deck; some cable
may be left in place on the room-sized pieces to be removed after the large piece
is removed to shore.  Asbestos removals are also  often done just ahead of the
cutting operation, but before PCB removals.  After accessible asbestos and PCB
items are removed, smaller items are removed such as gauges and other salable
items. Finally room-sized pieces are cut and lowered to shore by crane. As they
become accessible, remaining PCB-containing electrical cables are removed from
the room-sized pieces in the yard.
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      Asbestos remediation is conducted to allow asbestos-free sections of the
ship to be cut off in large sections and lifted to the ground by crane.  Engine
rooms usually contain more asbestos containing material than other areas of the
ship, and thus, take the longest to remediate.  As asbestos-free sections of the
ship are removed, the engine rooms are left intact until asbestos remediation
there is complete.

      After the ship has been cut down to the lowest deck, it is winched to the
head of the slip and  portions of the bow are cut off.  The ship is winched
progressively farther ashore, until the scrapping is completed.

      Further dismantling/cutting is done on the shore by cutting the steel into
about 2- by 5-foot sections which can be loaded onto trucks or railcars.  The
workers at each facility primarily used hand held 6-foot long torches for cutting,
although small cutting torches are sometimes used in tight spaces.  The large
torches help protect the worker from the fumes, sparks, and the danger of falling
scrap.

      One shipbreaker compared shipbreaking to a mining operation with 8 to
10% of the total ship  tonnage not recyclable (i.e., asbestos,  PCBs, hazardous
waste, trash, etc.). Thus, a 10,000-ton ship would have about 800 to 1,000 tons
of asbestos, PCBs, hazardous waste, trash, etc.  The main "extractable"  or
recoverable material is steel/scrap metal cut into about 2- by 5-foot plates for
shipment to steel mills by truck, rail, or barge.  Copper is extracted from all the
communications, electrical, demagnetizing, and miscellaneous cables. Other
non-ferrous metals, such as brass and aluminum, are also extracted. Gauges,
boilers, motors, and anything usable is sold, if possible, for re-use. According to
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shipbreaking industry representatives, although ship scrapping facilities look
disorganized, segregation of extractables/recoverable materials (steel, copper,
brass, aluminum, usable items) is conducted in a systematic fashion.

      Solid wastes, air emissions, and wastewater streams are generated
during ship scrapping operations.  Major waste streams typical for selected ship
scrapping operations are identified in Table 1 and are discussed in more detail
in the appropriate media sections.
                                   Table 1
                        MAJOR WASTE STREAMS/SOURCES
Operations
Clean out vessel upon
receipt at facility
Empty vessel tanks
Remediate asbestos
Remove PCB items
Cutting torches
Processing electrical
cables
Fire control
Maintenance
Solid Waste
Paint, cleaning solutions,
miscellaneous chemicals
Sludges/tank bottoms,
fuels, oils
Asbestos-containing
material
PCB waste
Slag
Fluff may contain
asbestos and/or PCBs

Used oil
Air Sources

Hydrocarbons from
transfer operations


Hydrocarbons, red lead,
dibenzo furans, small
fires from oil on
bulkheads or decks

Hydrocarbons

Wastewater Sources/Stream

Bilge, ballast, and fresh water
Excess water from remediating
migrates to lower decks

Water used to cool hot surfaces
migrates to lower decks

Water migrates to lower decks

      Inspection team safety considerations are very important when conducting an
inspection at any ship scrapping operation. By using adequate personnel protective clothing/
safety gear, inspectors can ensure not only personal safety, but access to areas where wastes
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are located and/or being generated.  Inspecting a ship scrapping facility requires  team
members to be alert to potential hazards. Deck surfaces and much of the on-shore work area
surfaces are often not smooth, but littered with various objects. There are many cables,
hoses, and other trip hazards.  Unremediated areas of the ship may have loose asbestos
insulation underfoot. Gang planks and ladders (stairs onboard ships are called, and more
often resemble, ladders) may be steep and often require two hands and careful attention to
overhead hazards to negotiate. The ship is being taken apart and the ship or ship fixtures
may be loose, wet or oily, or hot. Areas of the vessel will be dark, or present other hazards.
A flashlight or a miner's type lamp for hard hats is a necessity. A half-face respirator may
provide better visibility to negotiate ladders in dimly lit areas. Cutting torches and associated
toxic lead fumes, that may be generated when cutting steel plate coated with lead paint,
should be given a wide berth. In order to more fully evaluate regulatory compliance, certain
observations  such  as ongoing  asbestos remediation  would require personal protective
equipment.  Items such as tyvek-coated coveralls, respirator, gloves, hard  hat, eye and
hearing protection, and steel-toed safety  shoes need  to be  available to members of the
inspection team and addressed in a safety plan [Appendix B].  Inspectors must be aware of
their surroundings at all times and never compromise their safety because of the dangerous
activities at any ship scrapping operation.
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                       INSPECTION CONSIDERATIONS
       The time required to scrap a vessel is typically measured in months or years. An
aircraft carrier may take 2 years, most large ships would take 3 to 9 months, and smaller
vessels may be scrapped in a month or 2.

       A large multimedia inspection team would not be appropriate for small facilities with
limited environmental staff; a two- or three-person team would be more effective. (There was
only one environmental person at each facility inspected in Brownsville.)  If additional
inspectors are needed to cover all the media, a four- to six-member team could inspect two
facilities per week (or other time unit) using two teams of two to three inspectors each and
switching facilities midweek (e.g., team A would spend the first half of the week at facility
A and the second half of the week at facility B conducting  media inspections for air,
asbestos, and hazardous waste at each facility, while team B would spend the first half of the
week at facility B and the second half of the week at facility A conducting media inspections
for water, SPCC, and PCBs at each facility).

INSPECTION OBJECTIVES

       Typical  objectives for multimedia compliance monitoring inspections of ship
scrapping facilities would be  to determine compliance with the  applicable regulations. All
regulations may not be applicable at each  facility and the objectives should be defined by
inspection team members based  on available background  information.   In addition,
inspection personnel should identify activities/conditions that have an impact on, or could
potentially impact, the environment, whether or not there are specific written requirements
or standards.
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INVESTIGATION METHODS
       A typical investigation of a ship scrapping facility would probably include:


       •     A preinspection review of EPA and state regulatory databases and files

       •     An on-site inspection that involved:

                    Discussions with company personnel including a detailed description
                    of facility ship scrapping operations

                    Visual inspection and review of facility operations

                    Facility records/document review

                    Collection of suspected asbestos-containing material samples for
                    asbestos  analysis,  cable  and paint samples for PCB  analysis,
                    wastewater samples for lead analysis, and samples of opportunity for
                    hazardous waste characteristics

                    Identification of pollution prevention opportunities

       •     Exit conferences between regulatory and company personnel after the on-site
             inspection to discuss preliminary inspection findings

    '  •     Report preparation

       •     Enforcement case development and support


PREINSPECTION REVIEW


       Once a facility has been targeted for inspection and a team leader assigned, available

background information needs to be accessed for review.  Primary sources of information are

EPA, state, and local regulatory databases and files.  Additional sources of information

include the Occupational Health and Safety Administration (OSHA) and the Department of


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Defense's Defense Reutilization and Marketing Service (DRMS). In order to successfully
bid for  DOD or Maritime Administration (MARAD) vessels, the facility must submit to
DRMS a technical proposal addressing how they will operate and comply with applicable
environmental requirements.  DRMS conducts periodic inspections of successful bidders.
If the inspection is to be unannounced, each agency contacted increases the possibility of the
facility learning of the inspection, whether inadvertently or not.

ON-SUE INSPECTION

       NEIC conducts  process-based2  multimedia  inspections  to provide the most
comprehensive evaluation of any facility.  A further description of the concept of process-
based inspections is presented in the March 1997 "Process-Based Investigation Guide,"
[Reference].  Ship scrapping operations  which produce salvageable material or wastes
include asbestos remediation; oil, fuel, hydraulic fluid, and lubricant reclamation; oily and
contaminated water treatment and disposal; hazardous waste identification, handling, and
disposal; PCB identification, handling, and disposal; and spills and associated spill reporting,
prevention, control, and  countermeasures.   Acquiring and refining detailed operation
information throughout the inspection is necessary to ensure a comprehensive multimedia
inspection.  Through interviews, visual observations, and  record reviews, the inspector
should understand all activities that generate regulated waste. The detailed description of
ship scrapping operations acquired during "process" discussions should define waste streams
generated, handling, and disposition.

       During, and subsequent to the inspection, pollution prevention opportunities can be
assessed. The company should  be given the opportunity to explain what it has done to


1       Ship  scrapping facilities have no real process operations or products, but produce
       salvageable material or wastes which will be discussed in this manual.
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improve  environmental  conditions.    Pollution  prevention  activities/environmental
accomplishments of each facility and potential pollution prevention opportunities can be
discussed in a "Pollution Prevention" section of the inspection report.

       Before or after the process discussion, a walk-through of the facility should be
conducted at the time felt most useful to the inspection team. If available, a facility plot plan
and diagrams of any ships being dismantled are helpful references for the walk-through. The
walk-through provides a chance to become familiar with what is described in the process
discussion.  Areas requiring detailed inspections or further explanations should be noted.
During the walk-through inspectors usually do not take the time to don full safety gear, and
there may be areas (i.e., active asbestos  remediation areas) that are not surveyed during the
walk-through. Restricted areas of interest should be noted and inspected later, when required
levels of personnel protective equipment is worn.

       Onboard  ship, it is important to learn the numbering system used  to  designate
compartments. There is a uniform numbering convention for decks and frames (bulkheads).
Decks are normally numbered from the main deck with whole numbers  for decks below the
main deck (e.g., 2,3,4, etc.), and 0 numbers for decks above the main deck (e.g., 01,02,03,
etc.). Frames or bulkheads are also numbered to identify how far aft or astern compartments
are located. Inspectors should become familiar with the ship's numbering system during the
walk through to facilitate correlation of locations with drawings. Inspectors can then identify
specific locations targeted for more detailed inspections.  Inspectors  will also be able to
identify locations listed on records and  documents being reviewed.

Clean Air Act

       Sources of air emissions for the ship scrapping industry are fires, asbestos, minor
fugitive VOC emissions from waste petroleum products, and fumes from cutting torches.
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During scrapping operations, small fires are a common occurrence, when oil or sludge is
ignited by cutting torches. They are usually short-lived, but may generate some intense black
smoke. Open burning is normally regulated by a local ordinance or regulation.

      Be aware that cables may be burned to remove coverings in order to recover copper
wire. The coverings may contain PCBs and asbestos.  During the inspection, the inspector
should investigate any evidence of open burning and document any such occurrence. Cables
can be removed by cutting with shears, power saws, or cutting torches. Cut cables with
melted insulation/coverings at the  cut end may be evidence of cables cut with a torch.
Burning of cables may be regulated by state or local open burning regulations. In the event
that cables are covered with asbestos insulation, then the asbestos NESHAP requirements
would prohibit burning.  Incineration of PCBs would also have to meet TSCA requirements
found in 40 CFR 761.70.

      There are minor fugitive losses of VOCs from oily waters and other  petroleum
products exposed to the atmosphere, and from natural gas or propane from cutting torches.
Typically, ship scrapping facilities have not been issued operating or construction permits
for air emissions sources.  If permits are  issued by EPA or the state or local  regulatory
agency, specific permit conditions need to be evaluated for compliance. If there is a lot of
equipment or truck traffic on unpaved areas, fugitive dust emissions may be regulated by a
State Implementation Plan (SIP). Each SIP may be different and compliance with specific
requirements should be evaluated.

      Asbestos remediation is a primary concern during ship scrapping and is regulated
under NESHAP regulations found  at 40 CFR Part 61, Subpart M.  Most states  have been
delegated authority to inspect  demolition operations  and enforce federal  NESHAP
requirements by reference.  Asbestos regulations are important to the ship scrapping industry
because large volumes of asbestos waste are generated (for example, one shipbreaker was
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generating 100 tons per month of asbestos-containing waste). During the NEIC inspections

in Texas, small pieces  of suspected  asbestos-containing material were observed on the

ground at all three shipbreakers, a probable indication of noncompliance with NESHAP

requirements. Two of the facilities inspected had hired contractors to train Spanish-speaking

employees to remove asbestos.


       The air inspection should focus on the following air emission sources: any open

burning and  on-going asbestos removal projects. Examples of federal and state checklists

used for asbestos inspections are presented in Appendix C. Evaluating compliance should

include the following:
       •     Daily work logs should be checked against dates on notifications.  Current
             notifications  are required for  any project removing  260 linear feet of
             regulated asbestos-containing material (RACM) on pipes, or 160 square feet
             of RACM on other facility components. Although ship scrappers usually do
             not sample and analyze for asbestos, any surveys or sampling records should
             be reviewed.  During the inspections in Texas, it seemed that any covering
             material not  clearly fiberglass, was treated  as RACM.  Most facilities
             employed their own asbestos workers, who remove large amounts of RACM
             from the ships.

       •     Training records should be checked for workers and supervisors listed on
             work logs.

       •     Containment areas should be checked for proper construction,  operation, and
             maintenance.

       •     Ongoing work should be observed to determine if dry removal is occurring.
             Are asbestos materials kept wet during demolition and properly disposed?
             Are cables/pipes/boilers removed  with asbestos still intact? How is the
             asbestos on these items remediated?

       •     Disposal bags should be hefted to determine if waste material has been kept
             wet. Dry asbestos is light and fluffy. Wet asbestos is heavy and more dense.
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       •     Dumpsters should be checked to determine if waste material  has been
             properly bagged.  Try to check randomly picked bags from as much of the
             dumpster as you can readily access.

       •     Trucks picking up asbestos should be observed, if possible.  Observe if bags
             are handled without bursting or dispersing asbestos to the atmosphere.

       •     Check facility and landfill disposal records versus dumpster logs.

       •     If time permits, check on the training contractor and the landfill. Do facility
             and training contractor records match? Does training contractor have proper
             training and certification? Does the landfill cover the asbestos waste daily?
             Is the asbestos waste placed in the landfill without dispersing asbestos to the
             atmosphere?

       •     Sample and photograph suspected asbestos-containing material found on the
             ground  and sources, such as nearby pieces of cable, that it may have come
             from.

       •     Ask the facility to clean up, and properly dispose of, asbestos on the ground.

       Asbestos is commonly found in floor tiles, gaskets, insulation, and transite pipe.
Some of these materials may also contain  PCBs, which is discussed later. To bid on
Department of Defense (DOD) and Maritime Administration (MARAD) ships, companies

must submit a technical proposal to DOD's  Defense Reutilization and Marketing Service

(DRMS) [the Department of Defense equivalent of GSA Surplus Sales].  In the Request for

Technical Proposal (RFTP), DRMS lists the following potentially regulated asbestos waste.
       •     Bulkhead and pipe or thermal insulation
       •     Bulkhead fire shields

       •     Electrical cable materials
       •     Brake linings

       •     Floor tiles and deck underlay

       •     Steam, water, and vent flange gaskets


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       •     Flexitalic gaskets
       •     Garlock seals
       •     Shaft packing
       •     Valve packing
       •     Pipe hanger inserts
       •     Weld shop protectors, bum covers, blankets, and any fire fighting clothing or
             equipment

An example of an RFTP is presented in Appendix D. The company should provide handling
and disposition information for the items listed above.

Clean Water Act

       The CWA regulatory programs applicable to the ship scrapping industry may include:

       •     NPDES (including storm water)
       •     Pretreatment
       •     SPCC

Many  industrial sectors generate wastewater  as a byproduct or waste product of their
manufacturing processes. While this is not the case with the ship scrapping industry, there
are wastewaters from sources that must be managed. Wastewater sources include:

       •     Bilge water (stagnant, dirty water that collects in lower parts of a ship)
       •     Ballast water (water intentionally carried in tanks or compartments of a ship
             to provide stability)   '
       •     Oily water

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             Fire control water
       Bilge water may be contaminated with fuels or oils. Ballast water may have been
chromated to prevent algal growth. During dismantling, water used in asbestos remediation
may drain to lower decks and be contaminated with oil. Water used to extinguish small fires,
which  occur  during the dismantling process, also may  drain to lower decks and  be
contaminated with oil.  As the scrapping  operation progresses,  more and more water
accumulates in lower levels of the ship. The inspection team should consider collecting
water samples from the lower decks for lead analysis.   Additionally, tanks of water
(sometimes previously unknown and/or sealed) may be found during scrapping.

       Depending  on  how the  wastewater  is managed and where it is discharged, ship
scrappers may be required to obtain an NPDES permit.  States, which usually have been
delegated the NPDES program, may have additional requirements. Ship scrapping facilities
sometimes install  oil/water separators to treat accumulations of oily water.  If the water
discharge goes directly to a receiving water, an NPDES permit would be required.  If the
water is discharged to the sewer, a pretreatment permit may be required. If permits are
issued, specific permit conditions need to be evaluated for compliance.  At the Port of
Brownsville, Texas, ballast water could be discharged to an earthen pit operated by the port
facility.  If earthen pits are used, the conditions at these discharge pits and materials
discharged must be evaluated. The local wastewater treatment facility should be contacted
to determine if any pretreatment conditions or local limits apply to the shipbreaking facilities.
Specific pretreatment  conditions  should be evaluated for compliance.  Publicly Owned
Treatment Works  (POTWs) discharging more than 5 million gallons  per day (MOD) are
required to develop pretreatment programs. Pretreatment may be required even by POTWs
discharging less than 5 MGD.
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       Industrial facilities including shipbreakers must apply for storm water permits.  One
of the requirements of having a storm water permit is developing and implementing a storm
water pollution prevention plan (SWP3). The facility has to identify sources of pollution and
develop reasonable precautions, known as best management practices (BMPs), to prevent
discharges of pollutants to storm water.  If rainfall occurs during an inspection, drainage
patterns observed should be compared to diagrams included in the SWP3. Specific permit
conditions and pollution prevention plan details should be evaluated for  compliance.
Specific permit conditions  typically include monitoring requirements  to sample during
rainfall events exceeding a certain threshold amount at least once a year and periodic self-
inspection. Company personnel should describe how the permit conditions are monitored
and how records are kept. Monitoring and inspection records should be  reviewed.

       To prevent accidental discharge of oil to receiving water, facilities which store over
1,320 gallons of oil in  aboveground tanks (or 42,000 gallons in underground tanks), are
required to have an SPCC plan. Shipbreaking facilities usually have fuel on-site for cranes
and other vehicles and equipment. The facilities also generate used oil, and often store
enough oil and fuel on-site to be required to have SPCC plans. Evaluating compliance
should include the following:
              Determine if the plan has been certified by a professional engineer and proper
              facility official. The plans need to be reviewed at least every 3 years.
              Carefully review the plan to determine if the facility has addressed required
              items per 40 CFR 112 and then review facility operations to determine if the
              facility is following its plan.
              Equipment listed in the plan should be checked to see if it exists, is inspected,
              and is in good working order.
              Identify and visually inspect all regulated tanks, including containment and
              run-off control systems and procedures.
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       •     Check the property shoreline and adjacent water for oil sheens or other
             evidence of floating oil

Safe Drinking Water Act including Underground Injection Control and Public Water Supply

       The SDWA regulatory programs applicable to the shipbreaking industry may include:

       •     Underground Injection Control
       •     Public Water Supply

None of the three shipbreakers at the Port of Brownsville were injecting waste into
underground wells or operating a  water supply system for their workers.  Generally,
shipbreaking does not generate large volumes of wastewater on a continuous basis that would
make operation of an injection well feasible.  However, if an injection well were used, it
would require permits, that should be evaluated for compliance  with specific permit
conditions.

       A public water supply system is defined as having at least 15 service connections or
serving at least 25 people at least 60 days per year. To operate a public water supply system
would require compliance with SDWA requirements found at 40 CFR Part 141. Because the
shipbreaking facilities in Brownsville were connected to the municipal public water supply
system, they are not regulated by the SDWA. The inspection should include evaluation of
the water supply only if the facility is operating the system.  Permits are generally not issued,
but systems should be  evaluated  for  compliance  with specific permit conditions,  if
applicable.  Maximum contaminant levels (MCLs) regulate concentration levels in water at
the tap for organic, inorganic, and bacteriological contaminants including coliforms. When
it is not feasible to establish MCLs, treatment techniques can be established.  Examples
include filtration and disinfection of surface water in lieu of an MCL for Giardia and
corrosion control for facilities that exceed lead and copper action levels.
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Hazardous Waste rRCRA)
       Ships from the military, including MARAD vessels, which are Reserve Fleet military
vessels, have usually been demilitarized (e.g., radar and weapon systems removed) and
cleaned (e.g., records, documents, cleaning supplies, unused paint removed). For example,
during the inspections in Texas, the only hazardous waste at a shipbreaker, which was
currently scrapping two MARAD vessels, was three drums of mercury fluorescent bulbs.
The ballast in fluorescent light fixtures and many other items found on ships can contain
PCBs (discussed further in TSCA PCB Regulations section). PCBs would be a significant
source of hazardous waste in those  states which regulate PCBs  as hazardous  waste.
Chromated (to prevent algal growth) water from ballast tanks and oily sludges may contain
heavy metals in concentrations which make it a hazardous waste. The filters from the drains
under the employee showers may accumulate heavy metals and asbestos and be a hazardous
waste. Unused paint or paint waste left on board may be a hazardous waste. Paints on hulls
or other surfaces may contain lead, but when scrapped could possibly be excluded from
RCRA regulations.  The hulls or other surfaces cut up and scrapped as "processed scrap
metal" (i.e., excluded from RCRA per 40 CFR 261.4), would be excluded from RCRA, if
the scrap is segregated, and the steel or other metal is sent for recycling.

       Commercial  vessels may arrive at the ship scrapping facilities  still containing
miscellaneous supplies, paints, adhesives, cleaning solutions (such  as solvents, alkaline
detergent formulations, parts cleaners, etc.), aerosol cans, etc., that may have to be handled
as hazardous wastes. For example, a shipbreaker received a barge containing items from
another facility's yard such as tires filled with cement. Commercial vessels are more likely
to have hazardous waste onboard or have been purposely loaded with waste material as a
means of disposal.
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       Depending on the volume of hazardous waste generated, shipbreakers are regulated
by certain RCRA requirements [Tablel]. Many shipbreakers are exempt from some RCRA
requirements because they generate less than 1,000 kilograms of hazardous waste per month.
If shipbreakers generate less than 100 kilograms of hazardous waste per month and do not
accumulate more than 1,000 kilograms of waste at any one  time, they are considered
conditionally exempt small quantity generators (CESQG) and are only subject to special
requirements found at 40 CFR Part 261.5.  If shipbreakers generate between 100 and 1,000
kilograms of hazardous waste per month, then they are considered small quantity generators
(SQG) subject to the requirements found at 40 CFR Part 262.44.  If shipbreakers generate
more than 1,000 kilograms of hazardous waste per month, then they are considered large
quantity generators (LQG) subject to all RCRA generator requirements. Facilities may go
from an LQG one month to an SQG the next month. During the months they generate over
1,000 kilograms of hazardous  waste, they must  comply with  all of the generator
requirements.
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                                                     Table 2

                                       RCRA GENERATOR REQUIREMENTS
      Category
   Quantity of Waste Generated (In one
      calendar month you generate...)
Applicable Requirements
      Required Action
  Conditionally
  Exempt Small
  Quantity Generator
  (CESQG)
- 2.2 pounds or less of acutely hazardous
wastes, or
- 220 pounds or less of hazardous wastes, or
- 220 pounds or less of spill cleanup debris
containing hazardous waste, or
(At any time you...)
- accumulate up to 2,200 pounds of
hazardous waste on-site
40 CFR 261.5




40CFR262.il


40 CFR 262.12
                                                             40 CFR 262.20 through
                                                             262.33
Determine how much
hazardous waste is generated
and accumulated

Conduct hazardous waste
determinations

Obtain EPA ID number, if
waste shipped off-site

Follow manifest and pre-
transport requirements for
waste shipped Off-site
 Small Quantity
 Generator (SQG)
- more than 220 pounds and less than 2,200
pounds of hazardous wastes, or
- more than 220 pounds and less than 2,200
pounds of spill cleanup debris containing
hazardous wastes, or
(At any time you...)
- accumulate more than 2,200 pounds of
hazardous waste on-sile
The above requirements
plus:

40CFR262.34(d), (e),
and(f)

Specified requirements of
40 CFR 262.44 as
follows:  40 CFR
262.40(a), (c), and (d)

40 CFR 262,42(b)
                                                             40 CFR 26143
                                                                                      Meet accumulation time
                                                                                      limits of 180 or 270 days

                                                                                      Recordkeeping
                                                                                      (manifest/waste
                                                                                      determinations)
                                                                Exception reporting (signed
                                                                manifests not returned within
                                                                45 days)

                                                                Additional reporting, if any,
                                                                as required by EPA
                                                                Administrator
  Large Quantity
  Generator (LQG)
- 2,200 pounds or more of hazardous waste,
or
- 2,200 pounds or more of spill cleanup
debris containing hazardous waste, or
- more than 2.2 pounds of acutely hazardous
waste, or
- more than 220 pounds of spill cleanup
debris containing an acutely hazardous
waste, or
(At any time you...)
- accumulate more than 2.2 pounds of
acutely hazardous waste on-site..       	
All of 40 CFR 261 and
262
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       There are special requirements for handling batteries, pesticides, and mercury

thermostats (universal wastes) found at 40 CFR Part 273, regardless of the amount of

hazardous waste generated.  State regulations vary  and should always be consulted for

additional and sometimes stricter requirements.


       Evaluating compliance should include the following:
       •     Document the waste generation rate, review waste determinations and any
             analytical data, determine total volume of waste on-site at any time.

       •     All hazardous waste on-site should be inspected noting size and type of
             containers, condition of containers and whether containers are closed and
             protected from the weather.

       •     Check labels on the containers for the words "hazardous waste," dates, and
             complete information; measure  volume of any secondary containment and
             compare to the total volume of waste stored; check that wastes have not been
             stored in excess of the allowable time period; check containment for cracks
             or leaks.

       •     Review any inspection records for the storage area, and check any emergency
             equipment such as phones, radios, spill control equipment, overpack drums,
             fire extinguishers, etc.

       •     All records need to be  reviewed including annual  or biennial reports.
             Compare wastes handled with those listed on the facility hazardous waste
             notification or state equivalent.  Review all manifests  and  land disposal
             restriction notices for the last 3 years. Check to see if any waste shipments
             have been rejected and that signed return copies of all manifests are present.

       •     Review any training plan and check personnel records including job titles to
             determine when hazardous waste duties were assigned and if proper training
             was provided.

       •     Review the contingency plan, if applicable. Ask about incidents requiring
             implementation of the plan.
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       •      Inspect maintenance operations for yard equipment (cranes, winches, other
              vehicles) which would generate used oil. Look for parts washers/degreasers
              or solvent wastes.
       •      If filters from employee showers and wastewater collected from lower decks
              of the vessel are not handled as hazardous waste, samples should be collected
              for TCLP lead analysis.
       •      Ships also generate waste fuels, used oils, and sludges (from tanks) which
              may  be hazardous  wastes.  Fuels and oils may be sent  to reclaimers.  A
              thorough investigation  would include  tracking   shipments  from  the
              shipbreakers through the reclaimers to verify that shipments of fuel or oil do
              not contain spent solvent or other hazardous waste liquids.
       Scrapping operations may be conducted on unpaved sites.  The ground may be
covered with slag, pieces of cable, pieces of tile, occasional suspected asbestos-containing
material, metal, paint chips, etc.  One shipbreaker had done a limited site assessment, prior
to beginning operation at the site.  The site assessment revealed action levels of lead in
surface soil and groundwater probably due to the presence of lead-based paint on scrapped
vessels. All the sites could eventually be subject to corrective action or superfund cleanups.

       It is important to track hazardous waste from cradle to grave.  Inspection of the
treatment,  storage,  and disposal  facilities (TSDFs),  to which hazardous  waste from
shipbreakers is manifested, provides information about final disposition of the waste, if
necessary to reconcile facility records.

Underground Storage Tanks
       Shipbreakers may have underground storage tanks. Most states have been delegated
the underground storage tank programs and require that existing tanks be registered. The
state programs often can provide information about whether a specific company has any
registered USTs. It is important to verify registration information for each on-site UST. The

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regulations are complex and depend on the material stored in the tank, how old the tank is,
what the tank is made of, and the types of monitoring equipment for the tank. As of
December 22,1998, all USTs not meeting new tank or upgrade standards must be taken out
of service and removed.

TSCA PCB Regulations

      EPA regulates disposal of PCBs at concentrations of 50 ppm or greater, and under
current TSCA regulations, export of PCBs at concentrations of 50 ppm or greater for
purposes of disposal is prohibited.  Many of the uses of PCBs on ships are not authorized
uses under TSCA, and unauthorized PCBs at 2 ppm or greater are not permitted to be used
or distributed in commerce and must be disposed. However, in 1994, EPA proposed to allow
the export of PCBs in a manner similar to the way export of hazardous waste is controlled
under RCRA. Pending finalization  of the export provisions, EPA entered into interim
agreements with the Navy and MARAD to allow the export of ships containing PCBs for
scrapping, provided specific materials were removed from the vessels prior to export. The
agreements require the removal of specified liquid PCBs and solid PCB items that are readily
removable.  These issues are discussed in two documents titled "Shipscrapping Agreements
and PCBs - Background Paper" and "Administrator's Factsheet - Scrapping of Navy and
Maritime Administration  Ships  containing PCBs" presented in  Appendix  E.   The
EPA/MARAD interim agreement is presented in Appendix F. Before conducting a PCB
inspection of a  Navy or MARAD ship the inspector should become familiar with the
document "Sampling Ships for PCBs Regulated for Disposal" [Enclosure 4 of Appendix F].
Although whole ships can be exported per agreement, pieces of scrap steel covered with
paint containing regulated amounts of PCBs is not covered by the agreements and cannot be
exported. These  export agreements have been suspended and their current status will always
need to be determined if a ship is to be exported.

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       EPA published amendments to TSCA in the June 29, 1998 Federal Register
[63FR35384] which are broad and will affect sampling, analysis, and disposal of PCBs. The
new amendments were effective August 28,1998.  EPA delayed addressing exports in the
new rulemaking, so current Navy and MARAD agreements addressing export of PCBs are
still applicable and remain applicable even with the new amendments in effect.

       PCBs  are second only to  asbestos as a primary environmental  concern  during
scrapping. In the RFTP, DRMS lists the following potentially regulated PCB waste.

       •     Transformers
       •     Capacitors
       •     Electrical cable
       •     Insulation
       •     Felt gaskets
       •     Thermal and acoustic insulation materials
       •     Aluminized paint
       •     Various rubber and plastic products

       Shipbreakers often sample for PCBs because EPA has presumed certain items contain
PCBs at regulated concentrations of 50 ppm or greater, unless sampling and testing results
prove a lesser concentration.   The new amendments to TSCA change some  of the
assumptions, but because shipbreaking facilities are dealing with electrical equipment, which
is being disposed of, the assumption policies of 40 CFR Part 761.2 do  not apply.  The
facilities must know the actual PCB concentration and use the proper disposal method. The
following items are presumed to contain PCBs.
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       •     Cable insulation
       •     Rubber and felt gaskets
       •     Thermal insulation material including fiberglass, felt, foam, and cork
       •     Transformers,  capacitors, and electronic equipment with capacitors and
             transformers inside
       •     Voltage regulators, switches, reclosers, bushings, and electromagnets
       •     Adhesives and tapes
       •     Oil including electrical equipment and motors, anchor windlasses, hydraulic
             systems, and leaks and spills
       •     Surface contamination of machinery and other solid surfaces (unknown
             sources presumably from historic practices)
       •     Oil-based paint
       •     Caulking
       •     Rubber isolation mounts
       •     Foundation mounts
       •     Pipe hangers
       •     Light ballasts
       •     Any plasticizers

The presumptions that the above items contain PCBs, plus information on sampling and
analysis, are defined in a November 30,1995 letter to MARAD [Appendix F].  Additionally,
the August 5,1996 response to the MARAD enforcement discretion extension letter contains
sampling and analysis guidance for PCBs in paint [Appendix G]. Note this draft guidance
has not been peer reviewed.

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       Evaluating compliance should include the following:
       •     Disposition of the materials listed above needs to be checked during the
             inspection. The shipbreakers NEIC inspected were not testing or handling
             fiberglass insulation as PCB or PCB-contaminate items.

       •     PCB waste should be tracked through to the disposal facilities, similar to
             tracking RCRA waste, if necessary to reconcile facility records.

       •     Sampling plans and laboratory results need to be reviewed.  None of the
             shipbreakers NEIC inspected had their own laboratory. The local laboratory
             used by some of the shipbreakers was  not analyzing PCB samples properly
             and the accuracy of analytical results was questionable. The inspection team
             needs to include someone who can conduct laboratory audits [see following
             section on conducting laboratory audits].

       •     Determine the 100-year floodplain location with respect to any storage-for-
             disposal area. Many shipbreakers are located within the 100-year floodplain
             and cannot have storage-for-disposal areas. Has the storage-for-disposal area
             been approved by EPA?

       •     Any PCB temporary storage  area or  storage-for-disposal area should be
             inspected. The storage area must be protected from the elements. Labels and
             PCB marks should be checked on each item in storage.

       •     The floor and curb of any storage-for-disposal area should be checked for
             cracks and the curb measured to determine if it is at least 6 inches high.
             Capacity of the storage area should be checked against the total volume of
             PCBs in storage.

       •     Ah1 records should be reviewed including manifest and disposal records and
             annual documents  and notices to local fire departments.  EPA and building
             owners have to be notified of the location of PCB transformers after August
             28,1998.


       At the beginning of the inspection, a Notice of Inspection and a TSCA Inspection

Confidentiality Notice must be issued to appropriate facility personnel.  Before leaving the
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site, the following two forms are issued:  a Receipt for Samples and Documents and a
Declaration of TSCA Confidential Business Information (CBI).

Conducting Laboratory Audits

       The purpose of laboratory evaluations and data quality assessment is to determine if
analytical and monitoring needs have been satisfied,  and to assess data usability.  Two
approaches are used, performance audits and systems audits. A performance audit assesses
results and usually does not examine the intermediate steps used to achieve those results.  A
systems audit typically involves an  inspection  of the components comprising the total
measurement system; that approach  is discussed in the following  paragraphs.  For ship
scrapping two possible approaches to a performance audit are:

       •     The analysis of a reference material (performance evaluation sample)
       •     Splitting samples between two laboratories, one hopefully having trusted
             performance
Performance evaluation (PE) samples for PCB analysis only exist for liquid or soil matrices.
However, a ship scrapper might retain a portion of cable which tested positive for PCBs, and
use that as a PE sample over a period of time to monitor a laboratory or laboratories for
consistency of results. An inspector may request a portion of the PE cable for independent
analysis.

       EPA guidance for sampling of ship scrapping non-liquid PCB materials is presented
in Enclosure 4  of Appendix E. Understanding the sampling strategy used at the site,
including how material is treated/handled  when results are positive is necessary.  There
should be an organized, understandable system for segregating materials according  to
positive PCB results or negative results,  and for how similar unsampled still-in-place

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materials are treated.  In other words, the applicability, and implications for further action,
of sampling results to material either removed or still on the ship should be known.

       The laboratory will very likely not be a source of much sampling information, but
laboratory personnel may be listed as sample collectors. If personnel from the lab are listed
as sample collectors inquire about the extent of their activity and did they prepare and/or
follow a sampling plan. Did they select sampling locations or just sample what they were
told to sample by the facility? The latter is reasonable, since it is doubtful that someone
unfamiliar with ship scrapping would understand and effectively use an appropriate sampling
plan.

       Analytical Methods

       Analytical methods are specified in  Appendix 1 of Enclosure 4 [Appendix F]. The
approach is soxhlet extraction using toluene as solvent equivalent to SW-846 Method 3540;
extract clean-up by partitioning with concentrated sulfuric acid; followed by extract analysis
by Method 8082,  the most recent SW-846 gas chromatographic (GC) method for PCBs. The
SW-846 manual presents extraction and instrument methods. Organic extraction methods
have numbers in the 3400 series, and instrument methods are in the 8000 series.  Letters
behind the number indicate revisions of the  methods, usually because of corrections to text
or additions of performance data,  rather than to present significant changes to the details of
performing the method; major changes to methods are usually given a new method number.
For example, Method 8082 is the instrument method for analysis of PCBs using capillary GC
columns with electron capture detection. The science involved is essentially the same as for
Method 8080, which was for analysis  of organochlorine pesticides and PCBs using packed
columns. When capillary columns became prevalent in laboratories, specific methods were
written for pesticides (8081, although early versions included PCBs) and PCBs (8082). This
background  is presented  because Enclosure 4 mentions some of these other methods.
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Method 8280 is for analysis of chlorinated dioxins and dibenzofurans, and the method
number in Enclosure 4 should be 8082.  The implementation of performance based
measurement systems (PBMS) may end regulatory requirement to use specific methods,
although ship scrapping contracts may specify methods for that contract.

       Sulfuric acid clean-up of the sample is effective and relatively easy compared to other
clean-up approaches, and has been used for decades for PCB analysis. The clean-up takes
advantage of the chemical inertness of PCBs. Concentrated sulfuric acid will react with
many compounds which would be chromatographic interferences in the analysis, yet will not
affect the major PCB components of Aroclor mixtures. The reaction products partition into
the sulfuric acid layer during the clean-up and are removed from the extract before GC
analysis. The EPA Region 6 laboratory has found that the toluene extract from cable samples
(and presumably other types of samples) did not give a distinct separation of solvent and
sulfuric acid layers during the clean-up, but that diluting the toluene with hexane gave an
effective separation, as well as a solution appropriate for GC analysis.

       Laboratory Audit

       At the  laboratory, the auditor will probably first talk to the manager or quality
assurance  officer. They should discuss general procedures the lab uses for ship scrapping
samples. In addition to analytical procedures (which should be those discussed above), the
following should be verified.

       •      Who collects samples
       •      Who selects sample locations/what samples to collect
       •      Review sampling plan
       •      How samples are prepared for analysis
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       •     What portions of cable samples are analyzed
       •     What is the particle size of sample portions extracted
       •     How calibrations are performed
       •     How Aroclors are quantitated (are quantitative results based on standards of
             the Aroclor detected in the sample?)
       •     How spiking is performed, what the spike concentration is in terms of sample
             concentration (if you care about 50 parts per million in a sample, spikes at
             500 ppm are of questionable value).
       •     What happens on real samples (this can be verified by talking to the
             personnel actually performing the analysis)
       •     How QC procedures are conducted (obtain a QC package for each type of
             analysis performed)

       Particle size reduction for rubber-like materials is important so that the solvent can
better penetrate the interior of particles. A particle size of 1 mm is preferable, but if rubber
particles are no more than 2 to 3 mm in their largest dimension, the laboratory is probably
doing a better job than many laboratories. The size reduction can be very labor intensive and
is an obvious opportunity for short cuts.

       Look at chromatograms of ship scrapping samples and of Aroclor standards. The
peak widths seen in samples and  the general appearance of the chromatogram should be
similar to standards when observed from 5 feet away. That is, sample chromatograms should
not be dominated by flat-topped blob peaks a minute or more in width, although they may
be observed occasionally without great concern.  Such peaks are interferences in the analysis.
If they obscure enough of the  chromatogram within the retention  time range of Aroclor
mixtures so that at least a portion of the Aroclor pattern could not be identified, they prevent
accurate quantitation of Arochlor present in the sample.
EPA-331/9-99/001                       Page 36 of 41                        February 1999

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          MULTIMEDIA COMPLIANCE MONITORING INVESTIGATION PROTOCOL
	FOR THE SHIP SCRAPPING INDUSTRY	
       Close comparison of standard and sample chromatograms should allow anyone to
confirm or deny the presence of an Aroclor mixture.  Samples will typically contain
additional peaks which will confuse the issue, but if the laboratory has reported PCBs in a
sample, you should be able to pick out a pattern of peaks due to the Aroclor mixture.
Conversely, if you see a pattern of peaks in a sample for which the lab has not reported PCBs
as being present, laboratory personnel should be able to convince you by comparing retention
times and the overall pattern of sample and standards that no Aroclor mixture is present. If
this cannot be done, you have reason to  question the accuracy of their results.  Most
laboratories will have a computer-based data system for acquiring and processing GC data.
The data system should be able to produce magnified displays of portions of a chromatogram
of interest so that close comparison of sample to standard chromatograms can be made.

       A certain indication of problems with the capability of the laboratory to perform
reliable PCB analysis is repeatedly seeing sample chromatograms for reported data which
"go off scale" and stay there until the data system stops collecting data at the end of the run,
or data where a huge lump peak obscures the majority of the chromatogram. It is appropriate
to consider such samples as "not analyzed." If a lab has reported "none detected" for such
a sample because "they didn't see any indication of PCBs," the truth is more accurately "they
have no idea what might be there."

       The chromatograms of blanks should have no more than a few small peaks, and
preparation blanks should not look greatly different than pure solvent injected on the GC.
Be aware that the GC data system will probably normalize the scale of a chromatogram to
the largest peak in the display.  This normalization can make a "clean" chromatogram look
bad. You can expect somewhere on a chromatogram to see a number indicating the height
of the largest peak, or the scale of the chromatogram.  If this number is on the order of six
to eight digits for standards, and three or four digits for the preparation blank, it is acceptable

EPA-331/9-99/001                     Page 37 of 41                         February 1999

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          MULTIMEDIA COMPLIANCE MONITORING INVESTIGATION PROTOCOL
	FOR THE SHIP SCRAPPING INDUSTRY	
even if the picture of the chromatogram is "ugly"; the response of the blank is insignificant
compared to concentrations of interest.

      Potential problems observed during an audit should be supported by documentation.
Get copies of data and have specific sources for information and examples of things you
believe are problems. Consider requesting sprits of problem samples.

      Under the PCB Disposal Amendment, Final Rule published in the Federal Register
June 29, 1998, the non-liquid PCB items from ship scrapping operations such as cable
insulation, felt pads, and rubber gaskets are classified as PCB bulk product waste.  This may
affect how future sampling and analysis are conducted.  These amendments were effective
August 28,1998.

EPCRA

      The ship scrappers are not manufacturers and would not have to do release reporting
under Section 313, but would be subject to spill reporting.  None of the  facilities NEIC
visited/inspected had reported any spills. Any spill records should be checked for time of the
event and time of reporting to regulatory agencies (state emergency response commission,
local emergency planning committee, and National Response Center for spills  involving
reportable quantities) including written follow-up reports.  The Coast Guard  (National
Response Center) can be contacted for a list of reported spills, and/or the local Coast Guard
Station can be contacted to see if it has responded to spills at the facility.

      There is also a requirement under EPCRA [40 CFR Part 370]  for reporting any
inventory of hazardous chemicals used on-site where there is 10,000 pounds stored on-site
at any time. Hazardous chemicals (basically anything that needs a material safety data sheet

EPA-331/9-99/001                     Page 38 of 41                         February 1999

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           MULTIMEDIA COMPLIANCE MONITORING INVESTIGATION PROTOCOL
	FOR THE SHIP SCRAPPING INDUSTRY	
[MSDS]) may include liquid oxygen and other chemicals used to supply the cutting torches.
There is no SIC code limitation.
FIFRA
       Tributyl tin (TBT) paint (anti-fouling paint) is considered a pesticide. Unused paint
or paint waste may be subject to label disposal directions and/or RCRA regulations. Paint
on hulls cut up for scrap would be excluded from RCRA regulations, provided the scrap is
segregated.  The scrap steel and  other metals are considered processed scrap metal and
excluded from RCRA regulation.

Other/Miscellaneous

       Ship scrapping facilities may dredge their slips, and piles of dredge spoils, containing
unknown materials, may be observed at the site.  The ship scrapping facility would need to
obtain a Corps of Engineer permit for the dredging. The dredge spoils may contain pieces
of rope, cable, etc., similar to what is found on the ground at this facility and at other
shipbreakers.  The dredge spoils might also exhibit lead contamination similar to the surface
soil at other facilities.

EXIT CONFERENCE

       During the exit conference  between regulatory and facility personnel, inspection
personnel should stress that the findings are preliminary and final determinations will be
made in conjunction with regional and state personnel.  The facility should be encouraged
to provide a follow-up  status report of subsequent actions taken to address inspection
findings.  The facility should be informed that the status report  will be included as an
appendix to the inspection report if it is received before the inspection report is finalized.
EPA-331/9-99/001                      Page 39 of 41                         February 1999

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           MULTIMEDIA COMPLIANCE MONITORING INVESTIGATION PROTOCOL
	FOR THE SHIP SCRAPPING INDUSTRY	

INVESTIGATION REPORT
       After the on-site inspection is completed, information obtained is further evaluated
and findings/conclusions are developed. An investigation report is then written to present
the findings,  conclusions, and supporting information in a logical, organized  manner.
Reports should be prepared and peer-reviewed before they are published in final form. The
procedure involves developing one or more drafts for review.  Upon receipt of comments on
the review draft, a final report is prepared.  The  final report is the basis for follow-up
activities or enforcement actions that might be initiated.

       Inspection reports are prepared by the  appropriate individual or project team
member(s) under the direction of the team leader.  All participants in the report preparation
process must assure that their individual contributions are accurate, relevant, objective, clear,
fully supportable, and commensurate  with agency policy.  Supporting information  and
documents used or referred to in the report are implicitly  endorsed, unless disclaimed.
Report authors are responsible for determining where such disclaimers are needed. Although
the overall responsibility for the preparation  and  content of the reports rests with the
investigation  team  leader, team members are  responsible for the quality,  accuracy,  and
admissibility of information in the final report.

       Many different formats are possible for the investigation report.  However, to produce
a cohesive, readable document,  it is recommended  that a single multimedia report be
prepared. The potential audience for a multimedia inspection report may be diverse and
includes  not only technical peers, but also managers,  lawyers, judges, reporters, informed
citizens,  and other non-technical readers.   The reports should be written for this diverse
audience.
EPA-331/9-99/001                      Page 40 of 41                         February 1999

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          MULTIMEDIA COMPLIANCE MONITORING INVESTIGATION PROTOCOL
	FOR THE SHIP SCRAPPING INDUSTRY	
       Readability of the comprehensive multimedia reports may be enhanced by organizing
the report into two major sections: the Executive Summary and the Technical Report. The
Executive Summary section  clearly  states inspection  objectives,  discusses relevant
background information, summarizes  inspection methods,  and  as  appropriate, presents
conclusions regarding facility compliance which are supported by a brief summary of the
findings.  The Summary should include specifics to accurately determine whether a violation
has occurred (e.g., "insufficient aisle space" does not provide sufficient detail; "aisle space
less than 15 inches" is acceptable). The Technical Report section more comprehensively
describes the inspection, giving specific details about the findings, including sample
collection and analysis, and other pertinent aspects of the investigation. Findings in the
Executive Summary must correlate to and be supported by discussion in the Technical
Report.

       Distribution of final reports is coordinated with the requesting office, program office,
and Regional  counsel.  Reports containing confidential business information (CBI) per 40
CFR Part 2 will be subject to distribution restrictions.  EPA reports containing material
asserted to be CBI by the company may not be shared with non-Federal agencies without
obtaining specific  authorization from  the company.  Within  EPA, reports are  often
"Enforcement Confidential" and distribution is restricted per organizational policies.
EPA-331/9-99/001                      Page 41 of 41                         February 1999

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                             REFERENCES

RCRA Inspection Manual, 1993 Edition, OSWER 9938.2A

TSCA Inspection Manual, Volume 2 - PCB Inspection Manual, March 1981

EPA Guidance for Controlling Asbestos-Containing Materials in Buildings - OPTS
EPA 560/5-85-024 June 1985

Pesticides Inspection Manual, January 1989, OPTS

Process-Based Invetigation Guide, March 1997, EPA report number: EPA-330/9-97-
001, also available on the internet at http://www.epa.gov/oeca/oceft/neic/pubs.html

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                          APPENDICES
A    Sources of Summaries of Applicable Environmental Laws
B    Safety Plan
C    Examples of State and Federal (NESHAP) Asbestos Checklists
D    Request for Technical Proposal
E    Ship Scrapping and PCBs  - Background Paper and Administrator's
       Factsheet
F    November 30, 1995 Letter to MARAD
G    August 5, 1996 Response to MARAD Extension Letter

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                     APPENDIX A
SOURCES OP SUMMARIES OF APPLICABLE ENVIRONMENTAL LAWS

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NEIC Multimedia Investigation Manual - Revised March 1992, EPA report number:  EPA-
330/9-89-003-R, ISBN: 0-86587-300-3

NETI-West Multimedia Inspector Training Course Manual - March 1996

NETI-West Basic Inspector Training Course Manual - July 1997

EPA Generic Protocol for Environmental Audits at Federal Facilities - August 1989, EPA report
number: EPA/130/4-89/002

Compact Disc from NETI on Major Environmental Statutes -1998

Environmental Law Handbook, 14th Edition, Thomas P.P. Sullivan, from Government Institutes,
Inc.

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 APPENDIX B
SAFETY PLAN

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                                  Appendix B

                   NEIC SITE HEALTH AND SAFETY PLAN
                              General Information
    Project
1.   Title:_
            Project
            Number:
2.   Location:.
3.   Description of Field Activities:.

4.   Date of Field Activities:	
5.   NEIC Personnel:
                                                              Project Leaders
6.   Contractor Personnel: Must be OSHA certified per 29CFR1910.120.
         (N/A)                   Obtain list of personnel, duties or work to be
                                performed, and copies of training certificates.
7.   Ambulance:
8.   Hospital:.
9.    Emergency Route:.

10.   Fire Department^

11.   Police:	
12.  Poison Control Center:
                             Emergency Information
  Phone:
	Phone:	
 (emergency room)
       .Phone:
      Phone:
     .Phone:
13.  Site Emergency Notification/Evacuation Method:.

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14.  NEIC Health and Safety Officer:
Steve Fletcher - 303-236-5111, Ext.283
15.   Radiation Safety Assistance:

Programs
          Jed Harrison, Director
          Office of Radiation

          Las Vegas Facility
          702-798-2476
                                Hazard Evaluation

16.   Check all known or potential hazards: _Radiation _Toxics 	Fire/Explosion
     _02 Deficiency _Corrosives _Noise _Physical _Biological _Dusts
     _HeaVCold Stress

NOTE: DISCUSS HAZARDS AND PRECAUTIONS IN DETAIL IN WORK PLAN
BELOW.

17.   Specify unusual working conditions/limitations (excavations, confined spaces,
lagoons, elevated, surfaces, weather, darkness, etc.)*
     * Attach specific hazard management plans, if applicable.

18. Potential Chemical Hazards:
CHEMICAL
Asbestos




TLV/
£DLH
0.1
fiber/cm3
PEL




ROUTE OF
EXPOSURE
Inhalation, ingestion




ACUTE SYMPTOMS
Restricted pulmonary
function




ODOR
LEVEL
N/A




ODOR/VISUAL
DESCRIPTION
White or greenish,
blue, or gray-green
fibrous solids




                                     Work Plan

19.   List tasks, anticipated hazards checked above, and control measures which will be taken,
     including levels of protection:
Task



Hazards



Level of Protection
CA,B,Cj>)ted ,-, .
Control Measures




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20. Health Hazard Monitoring Plan:
.Constituent

Type or
Sample v

Frequency

Instrument

Notes

21.   Site Control/Security Measures:.
22.  Decontamination Procedures (personnel hygiene, contaminated clothing, equipment,
     instruments, etc.):	
23.   Disposal Procedures (contaminated equipment, supplies, decontamination solutions,
     etc.):	

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                                          Approvals

This site HASP has been reviewed and constitutes the minimum anticipated safety requirements for
personnel engaged in field activities at this project site. However, the Project Leader has the authority to
change these requirements, based upon the conditions present at the site.
Approved by:

24.  Project Leader:	;	Pate:

25.  Branch Chief:	pate:

26.  Health & Safety Officer:	.	Pate:


SITEHASP.SAF: 03/92

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             APPENDIX C
EXAMPLES OF STATE AND FEDERAL (NESHAP)
         ASBESTOS CHECKLISTS

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                                        Texas Department of Health
                             Site Inspection Checklist / NESHAP & TAHPA

ON-SITE RECORDS/DOCUMENTS:                             YES   NO   UNK   N/A
1.  Applicable Regulations 295.58(k)                              	   	   	   	1.
2.  Roster of on-site registered workers  295.62(c)(2)(M)             	   	   	   	2.
3.  Workers annual physicals  295.58(c)                           	   	   	   	3.
4.  Workers fit test records 295.58(c)                              	   	   	   	4.
5.  Copy of work & personal safety practices 295.62(c)(2)(A),(J)      	   	   	   	5.
6.  Daily sign-in/sign-out sheets  295.62(c)(2)(E)                   	   	   	   	6.
7.  Copy of contract specifications  295.62(c)(2)(B)                 	   	   	   	7.
8.  Name and address of supervisors(s)  295.62(c)(2)(I)              	   	   	   	8.
9.  On-site air monitoring (i.e. personal)   295.62(c)(2)(F)            	   	   	   	9.
10. Written respirator program  295.62(c)(2)(G)                     	   	   	   	10.
11. Required documents posted  295.58(j)                          	   	   	   	11.
12. Evidence of NESHAP training  6l.l45(c)(8)                     	   	   	   	12.

ABATEMENT PRACTICES AND PROCEDURES:               YES   NO   UNK   N/A
13. Was ACM survey conducted  295.34(c)  61.145(a)              	   	   	   	13.
14. Notification submitted 295.61(a) 61.145(b)                    	   	   	   	14.
15. Activities according to notification  295.61(d),(e) 61.145(b)(2)   	   	     .     	15.
16.  Project began on  notification stan date  295.61(f)  61.145(b)(3)  	   	   	   	16.
17, ACM removed before demo/reno activities  61.145(c)(l)         	   	   	   	_17.
18. Are wet methods being used  295.60(h)  61.145(c)              	   	   	   	18.
19. ACM thoroughly wet  295.60(j)(l)   61.145(c)(2),(3),(4)         	   	   	   	19.
20. Units carefully lowered  295.60(j)(2)(B)  61.145(c)(2)           	   	   	   	20.
21. HEPA ventilation  was used 295.60(i) 61.145(c)               	   	   	   	21.
22. Negative air pressure of at least 0.02  inches of H,O  295.60(1)    	   	   	   	22.
23. HEPA vacuum available  295.60(h)            "               	   	   	   	23.
24. Component(s) sealed 295.60(j)(2)  61.145(c)                  	   	   	   	24.
25. Sealed components(s) labeled  295.60(j)(2)   61.150(a)           	   	   	   	25.
26. Are danger signs in English/Spanish   295.60(g)                 	   	   	   	26.
27. Is regulated area clearly marked 295.60(a)(3)                  	   	   	   	27.
28. Is regulated area established 295.59(b)(2)                       	   	   	   	28.
29. Are critical barriers properly established 295.60(b)              	   	   	   	29.
30  i- there a "three stage" decon  295.60(e)                        	   3ZI   ZZ!       30.
31. Is supervisor present 295.58(b)(2)   61.145(c)(8)               	   	   	   	31.
32. Is supervisor in containment at least 25% of the time 295.58(b)(3)	   	   	       32.
33. 1 fire extinguisher per 1000 sq ft 295.60(m)(l)                  	   ^^   ZH       33.
34. GFC1 units installed within area  295.60(m)(2)                  	   	   	   	34.
35. Is the HVAC shut down in work area  295.60(0                 	   	   	       35.

WASTE DISPOSAL PROCEDURES.                             YES   NO   UNK   N/A
36. Visible emissions 61.150(a)
37. Is ACWM double bagged 295.60(j)(2)
38. Is ACWM in bags thoroughly wet 295.60(j)(3) 61.150(a)(l)(iii)
39 . Do bags have OSH A warning labels 61.1 50(a)( 1 )(iv)
40. Do bags have generator labels 61.150(a)(l)(v)
41 . ACWM to be disposed of at an approved site 61 . 150(b)
36.
37.
38.
39.
40.
41.
42. OTHER:
 INSPECTOR(S) NAME: 	
 INSPECTOR(S) SIGNATURE 	  DATE

SITE SUPERVISOR SIGNATURE 	  DATE
                           Your signature only verifies the inspection results were discussed with YOU.
The above information will be fonvardtd to tht Texas Deoartmeru of Health. Austin office for further review. Possible Notices of Violations nun be wrilltn.

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                          TEXAS DEPARTMENT OF HEALTH
                    ASBESTOS DEMOLITION AND RENOVATION
                SITE INSPECTION CHECKLJST/NESHAP AND TAHPA

Notification #:	Date/Time of inspection:  	

Facility Location/Name:__	
Public Health Region / Local Program:	 County: .

NESHAP: 	         TAHPA: 	   Notification Priority:
Reason for Inspection: (Circle those applicable)
DEMOLITION      RENOVATION      O&M       PHASED     COMPLAINT  COMPLIANCE
OTHER:	
Building Owner: 	 TDK License No: .

Contractor:	 TDH License No: .

Individual Consultant: 	 TDH License No:

Consultant Agency:	  TDH License No:.

Project Supervisor: 	  TDH License No:

Air Monitor/Lab: 	  TDH License No:

Transporter: 	 TDH License No:

Name(s) and Position(s) of Other Person(s) Interviewed:
What type of ACM or Suspect ACM is involved in the Project (i.e. insulation, floor tile, roofing, etc.)?:
Is the Material Friable/Regulated?:.
Describe Current Stage of the Project (i.e. prep, removal, clearance, etc.):
Note any changes in the Information Provided on the Notification:
When did work that disturbed ACM start (if different from notification)?:
Waste Disposal Site:
Comments/Summary of Recommendations / Discussion with Owner/Operator:
Was Containment entered by Inspector^)?:  1. YES/NO	(initial)  2. YES/NO 	(initial)

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             ABBREVIATED CHECKLIST FOR MAP COMPLIANCE
                   (PUBLIC AND COMMERCIAL BUILDINGS)
                      FOR USE ON NESHAP INSPECTIONS
I.     GENERAL INFORMATION

Name of Facility	

Address           	
                  (City, State, Zip code)

Owner Name      	

Contact Person     	

Address           	
                  (City, State, Zip Code)

Phone Number     	
Date of inspection:  	             Time of inspection:.

Reason for inspection:	
      Routine Compliance Inspection:	       Citizen Complaint.

      Response Action Inspection:	

      Other (explain):	
II.    Definition of Public and Commercial Building:

      The interior space of any building which is not a school building, excluding residential
      apartment building of fewer than 10 units or detached single-family homes. The term
      includes, but is not limited to industrial and office buildings, residential apartment
      buildings and condominiums of 10 or more dwelling units, government-owned buildings,
      colleges, museums, airports, hospitals, churches preschools, stores, warehouse, and
      factories.  Interior space includes exterior hallways connecting buildings, porticos, and
      mechanical systems used to condition interior space.

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111.  OPENING CONFERENCE




      1.     Personnel present and interviewed:




            Name:	     Title:.




            Name:__	     Title:
      2.     EPA inspector accompanied by other State or Federal employee(s)




            Yes	      No	




            Name:	      Agency:	




            Name:	      Agency:	




      3.     Credentials presented to:	
      4.     Notice of Inspection signed and a copy provided to official?




            Yes	    No	




IV.   INSPECTION




Abatement Project Description (size of project, type of material, methods used):
Was the Building initially inspected for asbestos:




Yes	    No	




Name of Inspector:	




Accreditation Number	        Date_




Name/Address  of Training Provider	

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V.    Provide accreditation of contractors and workers:




      Name/Address of Contractor	
      Contractor/Supervisors:




1. Name:	   Accreditation #:	Date.




  Name/Address of Training Provider	
2. Name:	   Accreditation*:	Date.




  Name/Address of Training Provider	
Project Designer:	Accreditation*:	Date.




Name/Address of Training Provider	




      Workers:




1. Name:	    Accreditation *:	Date_




 Name/Address of Training Provider	
2. Name:	     Accreditation*:	Date.




 Name/Address of Training Provider	
3. Name:	     Accreditation*:	Date.




  Name/Address of Training Provider	
4. Name:	     Accreditation*:	Date.




 Name/Address of Training Provider	
5. Name:	     Accreditation*:	Date.




  Name/Address of Training Provider	

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6. Name:	    Accreditation^:	Date.

 Name/Address of Training Provider	
7. Name:_	    Accreditation^:	'_	Date.

 Name/Address of Training Provider	.	
8. Name;	     Accreditation #:	Date.

  Name/Address of Training Provider	;	
9. Name:	'.	     Accreditation*:	Date.

 Name/Address of Training Provider	
VI.   Air monitoring data

Was air clearance performed?          Yes	   >o_

1. Name and Address of Laboratory:	
 Accreditation #:	     Date
Contact Person:	      Pone Number.

Type of Analysis:               TEM_	     PCM	

VII.   POST INSPECTION INTERVIEW
      Inspector Signature                         Date
      Revised on 10/29/97

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          APPENDIX D
REQUEST FOR TECHNICAL PROPOSAL

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                                   NATIONAL SALES OFFICE
           DEPARTMENT
                   OF
              DEFENSE

                                   SPANNING THE WORLD
                                   TO TARGET THE MARKET
    REQUEST FOR TECHNICAL
          PROPOSAL (RFTP)
                 31-8018
         RFTP Opening Date and Time
APRIL 30,1998; 4:30 P.M. EASTERN TIME
     Inspection Period Begins: March 16, 1998
    This RFTP is for 13 ships located on the West Coast.

             Inspection is mandatory.

   Inspection period ends on April 24, 1998. Seven days
          notice required prior to inspection.

   Proposed Invitation For Bid is provided for information
                purposes only.
1 •. 	 • 	
VISA
1
1

1
                  DISCOVER

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                           31-8018
      REQUIREMENTS AND CRITERIA FOR TECHNICAL PROPOSALS
                  (FOR DOMESTIC SCRAPPING)
   EACH BIDDER MUST INSPECT EACH  SHIP ON WHICH IT INTENDS TO
BID PRIOR TO SUBMISSION OF ITS TECHNICAL  PROPOSAL IN  ORDER  FOR
THE PROPOSAL TO BE TECHNICALLY ACCEPTABLE.   THIS INSPECTION IS
MANDATORY AND MAY NOT BE WAIVED.   Bidders  are  strongly  advised
to review the pre-disposal documentation,  including hazardous
material inventories and surveys, which will be distributed at
the time of ship inspection.  BIDDERS MUST CERTIFY RECEIPT  OF
THE PRE-DISPOSAL DOCUMENTS AT THE TIME  OF  INSPECTION  OF THE
SHIPS.  Bidders who do not inspect the  ship during the
advertised inspection period as verified by the U.S.
Government log entry, and certify receipt  of pre-disposal
documentation will not be eligible to participate under Step 2
of this process.

   BIDDERS ARE ENCOURAGED TO PERFORM A  THOROUGH INSPECTION  OF
THE SHIP TO DETERMINE THE MAJOR EQUIPMENT  REMAINING ON  BOARD.

   Potential bidders must provide the  following information
for each person inspecting the ship.  This information  will be
used to obtain a security clearance to  enter the shipyard.  The
information must be submitted at least  7  calendar days  in
advance of the date of inspecting the  ships:

                   Name
                   Social  Security Number
                   Employer

For items 1-10 and item 13 this information can be faxed to
(360)476-8665 or mailed to:

                   Naval  Sea Systems Command Detachment
                   Naval  Inactive Ship Maintenance  Facility
                     (P3NS  B-550)
                   2450 Wycoff Way
                   Bremerton, WA  98314-5250
                   Point  of Contact:  Pete Galassi

   For items  11-12,  this  information can be  faxed to  (808)471-
4524 or mailed to:

                   Naval  Sea Systems Command Detachment
                   Naval  Inactive Ship Maintenance  Facility
                   93-051  Waipio  Point Access Road
                   Waipahu, HI  96797-3272
                   Point  of Contact:  Walt Leonard

   INSPECTION DATE  (EXCLUDES SATURDAYS,  SUNDAYS,  AND
FEDERAL/NATIONAL  HOLIDAYS).    BEGINS:   March 16,  1998,
8:00  A.M.  TO 3:00  P.M., LOCAL  TIME:

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                              31-8018
           o  ITEM(S):          HOURS:
                 1-13          APPT ONLY
      Bidder's  may  submit  more  than one  technical proposal  for
this RFTP.  If the bidder intends to bid on multiple
lot (s)/item(s), the technical proposal(s) must demonstrate the
capability and facilities to process multiple lot(s)/item(s)
concurrently.  BIDDERS SUBMITTING A TECHNICAL PROPOSAL FOR ITEM
13  (EX-ORISKANY)  ARE REQUIRED TO SUBMIT A SEPARATE TECHNICAL
PROPOSAL FOR THIS ITEM.  The bidder shall submit an original and
4 copies for each technical proposal submitted in response to
this solicitation,  subject to the following requirements and
limitations:

      A.   Company Name:  The  company name shall  appear  on the
title page only.   All other references to the company name shall
be removed from the technical proposal.

      B.   Title Page:   "Unpriced  Technical  Proposal".   The  title
page of each technical proposal shall include:  (1) the lot
and/or item number, and name of the ships for which you are
submitting a technical proposal;    (2)  solicitation number of the
Request for Technical Proposal (RFTP);  (3)  the company name of
the bidder; and (4) the bidder's position regarding disclosure of
proprietary or similar proposal data.

      C.   Tab1 e o f  Cont ents:  The  table  of  contents  shall identify
the major sections of the total proposal and show location and
page numbers of each section.

      The  technical proposal  is the  primary basis for the
evaluation of:   (a) the degree to which the bidder's claims of
performance capacity are supported, and  (b) the ability of the
bidder to perform in accordance with the requirements.   The
technical factors  to be considered are those discussed herein.

      Bidders are cautioned to  pay  particular  attention  to  the
following factors  in preparing their technical proposals and to
provide sufficient detail in those proposals to demonstrate their
complete understanding of the true scope of the work involved,
including the requirement to perform all contract requirements in
compliance with all Federal,  State, and local laws  and
regulations.  The  technical factors include:

                Environmental  Compliance Plan
                Operational  Plan
                Business and Management  Plan
                Safety and Health  Plan

      The  technical proposal  shall  be  sufficiently  detailed,
specific and complete as to enable Government personnel to make a
thorough evaluation of the proposal and a sound determination
that the bidder will have a reasonable likelihood of meeting the

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                               31-8018
requirements and objectives of the Government as set forth in the
Invitation  for Bids.  The technical proposal shall clearly and
fully demonstrate that the prospective bidder has a valid and
practical solution to the technical problems and risks inherent
in ship dismantling.  General statements to the effect that the
prospective bidder understands, can, or will comply with all
Federal, State, local laws and regulations or phrases such as
"Standard Procedures will be used" or "Well-known techniques will
be utilized" and generalities of textbook theories and
techniques, or quotation of regulatory requirements will not
constitute  compliance with these requirements concerning the
content of  the technical proposal.

      The  following  Technical  Proposal  organization  is  required to
facilitate  the technical evaluation:

      A.   TITLE PAGE
      B.   TABLE OF CONTENTS
      C.   ENVIRONMENTAL  COMPLIANCE PLAN
      D.   OPERATIONAL PLAN
      E.   BUSINESS AND MANAGEMENT  PLAN
      F.   SAFETY AND  HEALTH  PLAN
      G.   DRAWINGS
      H.   LIST  OF APPENDICES

APPENDICES:  Supplementary or supporting data as necessary.

                        TECHNICAL FACTORS

1.  ENVIRONMENTAL COMPLIANCE PLAN:  All bidders are advised that
they and any subcontractors must comply with all applicable
Federal, State, and local laws, ordinances and regulations.
Provide the following information for the bidder and all
subcontractors who will perform work under this contract:
                                              t
      A.   Provide the  procedures  for  identification  (testing),
abatement,  removal,  treatment,  storage, transportation and
disposal of all potentially regulated hazardous materials and
hazardous waste, and potentially regulated waste (including but
not limited to):

            1. PCBs  (transformers,  capacitors,  electrical cable,
insulation, felt gaskets,  thermal and acoustic insulation
materials,  adhesives, aluminized paint, various rubber and
plastic products) .   Address procedures for each potential PCB
application noted.

           2.  Asbestos -  bulkhead and pipe or thermal
insulation; bulkhead fire shields; electrical cable materials/-
brake linings;  floor tiles and deck underlay;  steam, water and
vent flange gaskets; flexitalic gaskets; garlock seals; shaft
packing; valve packing;  pipe hanger inserts; and weld shop
protectors, burn covers, blankets, and any fire fighting clothing
or equipment.

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                               31-8018
           3. Fuel oil, hydraulic oil, lubricants/greases/
              sludges,  bilge water,  and sump oil

           4. Lead, Barium, Cadmium  (paint, ballast)

           5. Chromium  (felt gaskets, sodium chromate fresh
              water, zinc chromate paint coatings)

           6. Mercury  (switches, gauges and indicators)

           7. Ozone depleting substances (small appliances)

           8. Waste water  (contaminated  during scrapping)

           9. Degreasing agents

           10. Paints to include enamels, polyurethanes, and
           water based latex paints.

           11. Any caustics used for boilers and cleaning agents

           12. Cadmium fasteners

      B.   Identify  Environmental Protection Agency  (EPA)
identification (ID) numbers and all permits and licenses
(Federal, State and local) required to perform this contract, and
whether such have already been  issued by the cognizant regulatory
agency or will be obtained by the bidder or its subcontractors.

      C.   Identify  names,  addresses,  EPA  ID numbers  of
transporters, and disposal facilities.  Provide temporary ID for
storage permit and insurance for HM/HW storage.  The bidder shall
use only the transporters and treatment,  storage,  and disposal
facilities (TSDFs)  from the Qualified TSDFs List and Qualified
transporters List  (see IFB Article SI: USE OF TSDFs AND
TRANSPORTERS for additional guidance).  This list is available on
the World Wide Web  (www) at either http://drms.dla.mil or
http://drms.dla.mil/drmss/enviro.html.  Bidders who do not have
access to the www may request a copy of these lists from the
Sales Contracting Officer.  (see IFB Article ST:  USE OF TSDFs
AND TRANSPORTERS for additional guidance).   Submit documentation
which demonstrates a working relationship with the transporters
and facilities you intend to use.  This documentation can include
manifests, Letter of Intent, etc.

      D.   Provide a  scrap  site  spill  containment/prevention and
emergency response plan.  Describe measures to be taken to ensure
that storm water drainage is not contaminated with hazardous
materials remaining on or removed from ship(s).

      E.   Describe  whether you,  your  company (any and all
companies in which you have been a principal) or any
subcontractor, including but not limited to, proposed

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                              31-8018
transporters, treatment, storage and disposal facilities, have
within the last five years, received from any Federal, State, or
local regulatory agency, to include, but not limited to,
environmental  (CERCLA, RCRA, and TSCA)  or safety  (OSHA):  a)
notices of violation(s); b) fines, c) convictions, or d) present
or pending citations?  Please provide evidence of final
resolution of these actions.

2.  OPERATIONAL PLAN:  Provide a description of the technical
approach planned which shows capability to accomplish removal,
demilitarization, abatement, ship dismantling,  towing, scrapping,
scrap metal handling, and the quality assurance practices planned
to ensure compliance with all Federal,  State, and local laws and
regulations.  The technical approach should additionally address
the following relative to all work performed under this contract:

      A.  Towing operations  and  Plans.   Describe  how  ships  will be
        towed  to ensure  safe transport of ship  to shipbreaking
        location.

      B.  Provide  step by  step procedures  to  be  followed when
        performing ship  dismantling:

                 (1)  Plans  for  using  dry-dock, slip  or  other
                     method

                 (2)  Measures to  ensure stability  during  hull
                     dismantling

                 (3)  Final dismantlement  of  underwater  hull

                 (4)  Measures to  prevent  flooding/sinking  of the
                     ship

                 (5)  Measures to  prevent  slag or other
                     contaminants  from entering  the  water
 The operational procedures should be in sufficient detail to
demonstrate the bidder's ability to meet the timeframes in the
contract under Article SJ, subparagraphs 3 and 4 and to
demonstrate the bidder's understanding of the scope of the work
effort required and the degree of difficulty involved.

      C.  Provide  a  schedule  for  each  ship  identified  in  the
        proposal showing the progressive order in which the
        bidder proposes to execute the abatement and dismantling
        work, to include:

                 (1) Removal of  the ship(s)

                 (2) Demilitarization of military equipment
                    identified  in  the Invitation for Bid  item
                    description

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                               31-8018
                 (3)  Stripping Government  property as provided in
                     the Invitation for  Bid item description

                 (4)  Planned completion  dates  and timeline for
                     each phase of scrapping

                 (5)  Identify which work items  are considered on
                     the critical path to  completion of the
                     contract
      D.  Describe the planned arrangement  of facilities to
accommodate the  flow of hazardous material  abatement and  complete
dismantling to include:

                 (1)  Production flow of  recyclable materials

                 (2)  Provide layout/arrangement  (drawings, plat)
                     of facilities  to be used

      E.  Describe how you  propose to monitor the work of all
subcontractors to include subcontractors performing hazardous
material removal and disposal, and  shipbreaking.

      F.  For those positions requiring training/certification,
provide copies of training  records/certifications  (competent
person, abatement personnel, etc.).   Provide documentation  on  the
bidder's training program sufficient  to demonstrate compliance
with:

                 (1)  Resource Conservation and Recovery Act (RCRA)

                 (2)  Toxic  Substances Control Act  (TSCA)

                 (3)  Department of  Transportation  (DOT)
                     Administration's

                 (4)  Hazardous  communication standard

                 (5)  Occupational Safety and Health Act

                 (6)  Specific work  to be performed

      G.  Describe procedures for securing  ships  for severe weather
(e.g., hurricanes/storms)  for  all ships, including those
temporarily moored pending  commencement of  dismantling work.

      H.  Describe the procedures for removing bilge and sump
water.

      I.  Describe procedures to be  used  in removing fuel and
hydraulic oil residue  prior  to cutting.

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                              31-8018
3.  BUSINESS AND MANAGEMENT PLAN:  Provide a description of the
firm's management and organization. The proposal shall
demonstrate that the corporate and project organization supports
the level of effort, environmental, safety and health compliance,
and dismantling procedures required for the proposed contract.
The bidder must provide itemized cost projections for contract
work requirements for Government review to ensure the bidder
understands the scope and difficulty of the requirement of the
contract.

     A.   The bidder shall  identify and describe  his, and  all
subcontractor's to be used, organizations to mc.nage the scrapping
contract including:

                 (1)  Services  to  be provided by subcontractors

                 (2)  Relationship of project organization  to
                     other  company  management structure  to
                     include:
                           a.  corporate  management;
                           b.  responsibilities  of the  project
                               organization and  its  authority to
                               commit  corporate  resources  to over
                               come obstacles; and
                           c.  level  of control  of major
                               subcontractors.

                 (3)  Identify  the bidder's  primary point of
                     contact for  addressing or resolving issues
                     related to the contract.

     B.  Provide names and resumes of all key personnel of
corporation and subcontractors including  environmental and site
safety program managers who will be involved with the ship
scrapping under this RFTP  (including period of employment with
the company and/or prior employment)  and  major assistants.
Include experience on similar projects.

     C. Discuss  risk factors  which are involved  in  successfully
completing this contract as related to contract  requirements,
including cutting and scrapping schedule  and financial
responsibility, and hazardous property abatement and disposal.

     D.   Provide a  cost projection, which  demonstrates  an
understanding of the scope of work, with  regard  to each of the
following contract operations:

                 (1)  Towing

                 (2)  Hazardous material abatement  and disposal

                 (3)  All direct costs  associated  with shipbreaking
                     including labor,  equipment and  supplies

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                         31-8018
           (4) Hazardous waste sampling and disposal

           (5) All other labor costs, including project
               administration and oversight

           (6) Laboratory analysis of samples taken due to
               unknown constituents.

E. Provide evidence that the necessary capital is
   available  to cover projected costs (this may be a letter
   of commitment;  the cost projection must be itemized)

F. Identify the location where shipbreaking is to be
   conducted, and other information, to include:

           (1) How the ship will be transferred from the
               Government's facility to the location where
               shipbreaking is to be conducted.

           (2) Describe the facilities to be utilized,
               including available space for mooring ships,
               piers, dry-docks, and/or marine
               rails and/or slips, and other industrial
               equipment

           (3) Describe the characteristics of the facility
               such as water depth, accessibility;
               capacity,  and any maintenance or dredging
               requirements.

           (4) Describe the layout of the proposed
               facilities and the proposed mooring plan.

           (5) Provide evidence of availability of such
               facilities for the duration of the contract
               performance, either by ownership, existing
               lease, or by letter from the facility owners
               indicating a statement of intent to utilize
               such facilities for  shipbreaking

           (6) Provide evidence that utilization of any
               leased facilities,  if applicable,  allow for
               shipbreaking operations and that
               shipbreaking operations are in conformance
               with local zoning regulations.

           (7) Identify the past use of the property.

           (8) Describe the past environmental compliance
               record of the facility.

           (9) Describe security procedures for ship(s)
               during nonduty hours.

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                              31-8018
      G.  Provide  the  name,  address,  phone  number,  contract  number
(if applicable) and a brief description of the services, of
either commercial concerns or Government agencies, for which
prior comparable services have been rendered.  Either the
experience of the bidder or key individuals who will be active on
this contract must be submitted.

4. SAFETY AND HEALTH PLAN:
     A.  Provide plan  for  compliance with  safety procedures
required by OSHA 29 CFR Part 1910 and 29 CFR Part 1915,
including, but not limited to:

                 (1) Diving Operations.  Describe diving program
                and services  to be employed, if any, during  ship
                breaking  operations.

                 (2) Confined  and Enclosed Spaces.   Provide
                procedures for working  in dangerous atmospheres,
                hot work, permits, gas  free certificates, 10
                percent PEL, marine chemist's, competent person,
                testing,  respiratory protection, training,
                hazards,  rescue, explosive proof equipment and
                ventilation.

                 (3) Welding,  cutting and heating.   Describe
                procedures for ventilation, personnel monitoring
                for lead, cadmium, mercury or beryllium,
                protection of personnel, training,  respiratory
                protection, torch cutting, permits  and
                inspections.

                 (4) Fire  Prevention/Protection.  Describe
                procedures for fire watch, hazards, fire
                extinguishers, hose lines, water supply, fire
                fighting  equipment, training, proper handling and
                storage procedures, and identification of
                potential ignition sources.

                 (5) Compressed Gas Cylinders.  Describe
                procedures for transporting, moving, securing and
                storing,  use of hoses and torches.

                 (6) Scaffolds, Ladders, Other Working Surfaces.
                Describe  use of personal flotation devices,
                guarding  deck openings and edges, platforms,
                personal  fall arrest systems, guardrails and
                access to ships.

                 (7) Housekeeping and Temporary Lighting.  Provide
                procedures for work areas, including aisles,
                passageways and temporary flooring openings.

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              31-8018
 (8) Health and Sanitation.  Describe washing
facilities, showers, eating and smoking areas to
be used and toilet facilities and change rooms.

 (9) Hazard Communication  (chemicals).   Describe
procedures for providing information to
employees, labeling, material data safety sheets
 (MSDS), employee training, non-routine tasks,
multi-employer workplaces, hazards of chemicals;
lead, asbestos, cadmium, etc.

 (10)  Asbestos Abatement Program.  Requirements:
PEL  0.1 f/cc, excursion limit 1.0 f/cc.
Describe muli-employer worksites,  regulated
areas, qualified person, exposure assessments and
monitoring, periodic monitoring, engineering
controls and work practices, ventilation,
prohibitions, barriers, negative pressure
enclosure, glove bag, PPE, laundering,
decontamination areas, lunch areas,  warning
signs, labels, housekeeping, medical
surveillance, recordkeeping, inspections,
employee information and training.

 (11)  Gear and Equipment for Rigging and material
handling.  Describe procedures for testing and
inspection of ropes, chains and slings, shackles
and hooks, chain falls and pull-lifts, hoisting
and hauling equipment and qualification of
operators.

 (12)  Personal Protective Equipment.   Provide
certifications, eye and noise protection,
protection against radiant energy, protection in
atmospheres immediately dangerous to life,
protection against gaseous and particulate
contaminants, head, foot and body protection,
personal, personal fall arrest systems, life
rings, etc.  Describe respirator protection
program and hearing conservation program.

 (13)  Employee Emergency Plans.  Describe
emergency escape routes, procedures to account
for employees during evacuations,  alarm systems,
weather plan, rescue, medical duties and first
aid procedures, treatment of injured personnel,
emergency numbers and training.

 (14)  Lead Abatement Program.  Requirement:
Action level 30 ug/m3, PEL 50 ug/m3.  Describe
procedures to used in work operations to provide
ventilation, use hygiene facilities and
practices, showers change rooms, warning signs,
medical surveillance, biological monitoring,
                10

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                               31-8018
                 exposure monitoring,  -testing,  work clothing,
                 training,  etc.

                 (15)  Spill Containment Program and Emergency
                 Response Plan.   Describe operating procedures,
                 medical  surveillance,  clean up activities,  PPE
                 and emergency equipment,  health hazards,
                 handling,  transporting,  labeling and disposing  of
                 container,  site  security and control,   response
                 procedures,  overall  responsibilities,  training,
                 etc.
Late Submissions and Modifications of Technical Proposals Under
Two-Step Formal Advertising

      A.   Technical  proposals and modifications  thereof must be in
the possession of the Sales  Contracting Officer by 4:30 p.m.
Eastern time on April 30, 1998.  Any technical proposals or
modifications thereof received after 4:30 p.m. Eastern time on
April 30, 1998 will not be considered.

      B.   The  only acceptable evidence  to  establish  the time of
receipt by the Government is the time/date stamp at the Defense
Reutilization and Marketing  Service  (DRMS) National Sales Office.

                       EVALUATION CRITERIA
      A.  The evaluation of each technical  factor  will  consider
completeness and clarity, degree of compliance with the
solicitation, and the  risk that the approach provided will be
completely  successful  as proposed.  The following technical
factors are considered to be of equal importance:
      Environmental  Compliance  Plan

      Operational  Plan

      Business  and Management  Plan

      Safety and Health  Plan

      B.  Each factor will  be.rated  as  acceptable,  reasonably
susceptible  to being made acceptable, or unacceptable.  The
introduction and any supplementary information provided will be
evaluated only in conjunction with the whole technical proposal
and only to  the extent that they support the individual
evaluation factors discussed above.  A proposal will not be
acceptable unless it is determined acceptable for all factors.
If a proposal contains a significant deficiency for a factor, it
will not be  considered acceptable  for that specific factor.  A
deficiency is defined as that part of an bidder's proposal which
                                11

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                               31-8018
would not satisfy the Government's requirements.  Acceptability
of each proposal will be based upon  (1) compliance with the
requirements of the foregoing paragraphs of this Enclosure 1
concerning content of the technical proposal and (2) evaluation
of the reasonable likelihood that the proposed plans will meet
the contract requirements and objectives.
ORAL OR WRITTEN DISCUSSIONS:

The Government intends to evaluate technical proposals and issue
the Invitation for Bid (IFB) without discussions with bidders
(except communications conducted for the purpose of minor
clarification).   Therefore, each initial technical proposal
should contain the bidder's best terms from a technical
standpoint.  However, the Government reserves the right to
conduct discussions if later determined by the Sales Contracting
Officer to be necessary.
NOTIFICATION OF UNACCEPTABLE PROPOSALS:

     When  a  technical  proposal  is  rated unacceptable  (either
initially or after clarification/discussions) ,  the Sales
Contracting Officer will promptly notify the bidder of the basis
of the determination and that a revision of the proposal will not
be considered.  Upon written request and as soon as practical
after award,  the Sales Contracting Officer will debrief
unsuccessful bidders.
MAIL YOUR TECHNICAL PROPOSAL  (plus 4 copies)  TO:

      Defense Reutilization  and  Marketing  Service
      Attn:  Ms. Wendy  Jones
      Sales  Division, DRMS-LMIB
      74 Washington  Avenue North
      Battle Creek,  MI   49017
                                12

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                      31-8018
PROVIDED FOR INFORMATION ONLY.

THE INFORMATION CONTAINED IN THIS ENCLOSURE IS
INTENDED TO BE INCLUDED IN THE PROPOSED INVITATION
FOR BIDS (IFB) SALES CATALOG, TO BE ISSUED AS STEP TWO
OF THIS TWO-STEP SOLICITATION. ANY VARIANCES FROM
THIS ENCLOSURE WILL BE HIGHLIGHTED IN THE IFB SALES
CATALOG ISSUED IN STEP TWO.

IF AN IFB IS ISSUED IN STEP TWO, THE IFB WILL ONLY BE
ISSUED TO BIDDERS WHO HAVE SUBMITTED AN
ACCEPTABLE TECHNICAL PROPOSAL IN STEP ONE OF THIS
SOLICITATION UNDER RFTP 31-8018.
                        13

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                               31-8018
                                                        PAGE
 FTEM DESCRIPTIONS	15-32

 ENVIRONMENTAL & SAFETY
  INFORMATION INSTRUCTIONS AND TERMS AND CONDITIONS	33-35

 TERMS & CONDITIONS OF SALE 	36-53

 ITEM BID AND AWARD PAGE	

 END USE CERTIFICATE	

 STATEMENT OF INTENT	
                 PAYMENTS: All Payments must be made in U.S. Currency in the form
           of cash, cashier's check, certified check, Traveler's check, bank draft or money
           order or credit card (Mastercard or Visa only) ) and submitted directly to the
           National Sales Office.
       MAIL TO: DEFENSE REUTILIZATION AND MARKETING SERVICE
                 NATIONAL SALES OFFICE (DRMS-LMIB)
                         74 N. WASHINGTON
                     BATTLE CREEK, MI. 49017-3092

                        OR FAX: 616-961-7568

          ITEMS 1-6 ARE BEING SOLD IN A PREDETERMINED LOT
         ITEMS 7-12 ARE BEING SOLD IN A PREDETERMINED LOT

             ITEM 13 IS BEING SOLD AS AN INDIVIDUAL ITEM
INDIVIDUAL BIDS WILL NOT BE ACCEPTED ON ITEMS BEING SOLD IN
PREDETERMINED LOTS. INDIVIDUAL BIDS WILL BE ACCEPTED ON ITEM 13
ONLY.

CONTRACT AWARD WILL BE BASED ON THE PRICE SUBMITTED FOR EACH
LOT. HOWEVER, FOR TRACKING PURPOSES IN THE DRMS AUTOMATED
SALES PROGRAM, PLEASE PROVIDE PRICES FOR EACH ITEM IN EACH LOT.
                                14

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                                 3U8018
      LOT 1, ITEMS 1-6, ARE LOCATED AT SUISUN BAY RESERVE FLEET
                           BENECIA, CA 94510
      LOT 2, ITEMS 7-10, ARE LOCATED AT SUISUN BAY RESERVE FLEET
                           BENECIA, CA 94510
     LOT 2, ITEMS 11 AND 12, ARE LOCATED AT NISMF PEARL HARBOR, ffl
                         WAIPAHU, ffl 96797-3272
      ITEM 13, IS LOCATED AT MARE ISLAND, VALLEJO, CA 94590, BUT
      MAY BE MOVED ELSEWHERE IN THE SAN FRANCISCO BAY AREA
                      PRIOR TO CONTRACT AWARD

     INDIVIDUAL BIDS WILL NOT BE ACCEPTED ON ITEMS SOLD IN LOTS.
          INDIVIDUAL BIDS WILL BE ACCEPTED ON ITEM 13 ONLY.

Ships are available for inspection by appointment only Monday through Friday, excluding
holidays, between the hours of 0800 - 1500. Appointment must be made 7 days in advance.
Please submit a fax on company letterhead providing the name, social security, employer,
and vehicle description for each individual inspecting these ships. Fax to (360)476-8665 for
ships at Suisun Bay and Mare Island and (808)471-4524 for ships at Pearl Harbor.

THE GOVERNMENT DOES NOT WARRANT OR GUARANTEE, BY EXPRESSION
OR IMPLICATION, THE  SIZE, TONNAGE, OR OTHER DESCRIPTIONS OF THE
SHIPS.

LOT1

  1.  GUIDED MISSILE CRUISER, EX-JOUETT, CG-29:

      BUILT 1964 BY PUGET SOUND NAVAL SHIPYARD. STEEL HULL WITH
ALUMINUM SUPERSTRUCTURE

       CHARACTERISTICS

      Length	547'
      Beam	54'8"
      Draft	fwd	13'6"
                       mid	16'
                       aft	19'
      Main Engines...!... Geared Turbine Deiaval
      Boilers...4...Combustion Engineering

THERE HAS BEEN EXTENSIVE STRIPPING AND REMOVAL OF EQUIPMENT IN ALL
AREAS OF THE SHIP.  THE SHIP HAS BEEN SUBJECTED TO PRECIOUS METALS
RECOVERY.

It is the opinion of the Government that the hull is in good condition.

Displacement tons: ESTIMATED 6,375 TONS - BASED ON WATERLINE SURVEY

Each bidder must inspect the ship.
                                   15

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                                      31-8018
 MAJOR ITEMS OF EQUIPMENT REMAINING ON BOARD THE SHIP:

 Industrial Plant Equipment                  Location
        1.  Lablond Lathe 54"               2-152-0-Q
        2.  Power Hacksaw 17"                  u
        3.  Pedestal Grinder 10"             2-152-0-Q
        4.  Electro Drill Press Model 801C         "
        5.  Wilson Model 37G 60 Ton Press
 Other Equipment and Material

        1.  Galley Equipment                1-92-0-L
        2.  Miller 400SS Welder       1-35-5-L
        3.  Miller 300SS Welder       1-72-2-L
        4.  Linde 301 HW Welder            2-152-0-Q
        5.  Universal Sand Blaster Mod B-3        "
The Main Anchor and chain are not included as part of the ship sale.

This ship must be scrapped to the extent specified in Article SJ.

DEMTL CODE: D

DEMILITARIZATION: Keypoint demilitarization was previously completed so as to preclude
restoration or repair to a usable condition. All guided missile launching systems, mounts and fire
control systems; sonar domes, transducers and associated equipment; torpedo tubes, gun mounts and
any other weapon systems must be further and totally destroyed by melting, cutting, tearing,
scratching, crushing or breaking the item and components.

CONTACT: PETE GALASSI  PHONE (360)476-3510

LOCATION: SUISUN BAY RESERVE FLEET, BENECIA, CA

                                  1EACH

END USE CERTIFICATE AND STATEMENT OF INTENT APPLIES AND MUST BE
COMPLETED AND SUBMITTED WITH BIDS FOR THIS ITEM.


2.  GUIDED MISSILE CRUISER, EX-HORNE, CG-30:

       BUILT BY SAN FRANCISCO NAVAL SHIPYARD, COMPLETED OCTOBER 1964.
STEEL HULL WITH ALUMINUM SUPERSTRUCTURE

       CHARACTERISTICS

       Length	547'0"
       Beam	.54' 8"
       Draft	fwd		10'6"
                          mid	14'0"
                          aft	18'6"
       Main Engines... 2... Geared Turbine Delaval
                                        16

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                                    31-8018
       Boilers... 4... Combustion Engineering


THERE HAS BEEN EXTENSIVE STRIPPING AND REMOVAL OF EQUIPMENT IN ALL
AREAS OF THE SHIP. THE SHIP HAS BEEN SUBJECTED TO PRECIOUS METALS
RECOVERY.

 It is the opinion of the Government that the hull is in fair condition.

Displacement tons: ESTIMATED 6,305 TONS - BASED ON WATERLDVE SURVEY

Each bidder must inspect the ship.

MAJOR ITEMS OF EQUIPMENT REMAINING ON BOARD THE SHIP:

Machine Shop

       1.  lea.-Lathe
       2.  1 ea. - Drill
       3.  1 ea. - Milling Machine
       4.  1 ea. - Grinder


The Main Anchor and chain are not included as part of the ship sale.

This ship must be scrapped to the extent specified in Article SJ.

DEMIL CODE: D

DEMILITARIZATION: Keypoint demilitarization was previously completed so as to preclude
restoration or repair to a usable condition. All guided missile launching systems, mounts and fire
control systems; sonar domes, transducers and associated equipment; torpedo tubes, gun mounts and
any other weapon systems must be further and totally destroyed by melting, cutting, tearing,
scratching, crushing or breaking the item and components.

CONTACT: PETE GALASSI PHONE (360)476-3510

LOCATION: SUISUN BAY RESERVE FLEET, BENECIA, CA

                                 1 EACH

END USE CERTIFICATE AND STATEMENT OF INTENT APPLIES AND MUST BE
COMPLETED AND SUBMITTED WITH BEDS FOR THIS ITEM.


3. GUIDED MISSILE CRUISER, EX-STERRETT, CG-31:

       BUILT BY PUGET SOUND NAVAL SHIPYARD, COMPLETED JUNE 1964, STEEL
HULL WITH ALUMINUM SUPERSTRUCTURE

       CHARACTERISTICS

       Length	547'0"
                                      17

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                                     31-8018
       Beam	54'8"
       Draft	fwd	11'0"
                          mid	14' 6"
                          aft	18'
       Main Engines... 2... Geared Turbine Delaval
       Boilers... 4... Combustion Engineering

THERE HAS BEEN EXTENSIVE STRIPPING AND REMOVAL OF EQUIPMENT IN ALL
AREAS OF THE SHIP. THE SHIP HAS BEEN SUBJECTED TO PRECIOUS METALS
RECOVERY.

It is the opinion of the Government that the hull is in good condition.

Displacement tons: ESTIMATED 6,206 TONS (BASED ON WATERLINE SURVEY)

Each bidder must inspect the ship.

MAJOR ITEMS OF EQUIPMENT REMAINING ON BOARD THE SHIP:

Industrial Plant Equipment                  Location
       1.  Buffalo N18 Drill                2-152-0-Q
       2.  K.R. Wilson 60 Ton Press
       3.  Lablond4'X30"Lathe

Other Equipment and Material

       1.  Miller Welder SRH-333           1-35-5-L

The Main Anchor and chain and 6 each extra anchors are not included as part of the ship sale.

This ship must be scrapped to the  extent specified in Article SJ.

DEMIL CODE: D

DEMILITARIZATION: Keypoint demilitarization was previously completed so as to preclude
restoration or repair to a usable condition. All guided missile launching systems, mounts and fire
control systems; sonar domes, transducers and associated equipment; torpedo tubes, gun mounts and
any other weapon systems must be further and totally destroyed by melting, cutting, tearing,
scratching, crushing or breaking the item and components.

CONTACT: PETE GALASSI PHONE (360)476-3510

LOCATION:  SUISUN BAY RESERVE FLEET, BENECIA, CA

                                  1EACH

END USE CERTIFICATE AND STATEMENT  OF INTENT APPLIES AND MUST BE
COMPLETED AND SUBMITTED WITH BIDS FOR THIS ITEM.


4. GUIDED MISSILE CRUISER,  EX-WILLIAM H. STANDLEY, CG-32:
                                       18

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                                      31-8018
       BUILT BY BATH IRON WORKS CORPORATION, COMPLETED DECEMBER 1964,
STEEL HULL WITH ALUMINUM SUPERSTRUCTURE

       CHARACTERISTICS

       Length	547'0"
       Beam	54' 8"
       Draft	fwd	10' 0"
                          mid	14'
                          aft	18'
       Main Engines... 2... Geared Turbine Delaval
       Boilers... 4... Combustion Engineering

THERE HAS BEEN EXTENSIVE STRIPPING AND REMOVAL OF EQUIPMENT IN ALL
AREAS OF THE SHIP. THE SHIP HAS BEEN SUBJECTED TO PRECIOUS METALS
RECOVERY.

It is the opinion of the Government that the hull is in good condition.

Displacement tons:  ESTIMATED 6,101 TONS (BASED ON WATERLINE SURVEY)

Each bidder must inspect the ship.

MAJOR ITEMS OF EQUIPMENT REMAINING ON BOARD THE SHIP:

Industrial Plant Equipment                   Location
       1.  Buffalo N18 Drill Press            2-152-0-Q
       2.  Sheetmetal Brack 4'
       3.  Milling Mach Mod H
       4.  Leblond 4X10" Lathe
       5.  10 Ton Hyd Press


Other Equipment and Material

       1.  Miller Welder                   2-152-0-Q
       2.  Galley Equipment                1-92-0-L


The Main Anchor and chain are not included as part of the ship sale.

This ship must be scrapped to the  extent specified in Article SJ.

DEMTL CODE: D

DEMILITARIZATION: Keypoint demilitarization was previously completed so as to preclude
restoration or repair to a usable condition. All guided missile launching systems, mounts and fire
control systems; sonar domes, transducers and associated equipment; torpedo tubes, gun mounts and
any other weapon systems must be further and totally destroyed by melting, cutting, tearing,
scratching, crushing or breaking the item and components.


CONTACT: PETE GALASSI PHONE (360)476-3510
                                        19

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                                    31-8018



LOCATION: SUISUN BAY RESERVE FLEET, BENECIA, CA

                                1EACH

END USE CERTIFICATE AND STATEMENT OF INTENT APPLIES AND MUST BE
COMPLETED AND SUBMITTED WITH BIDS FOR THIS ITEM.


5. GUIDED MISSILE CRUISER, EX-FOX, CG-33:

       BUILT BY TODD SHIPYARD CORPORATION,  COMPLETED NOVEMBER 1964,
STEEL HULL WITH ALUMINUM SUPERSTRUCTURE

       CHARACTERISTICS

       Length	547'0"
       Beam	54'8"
       Draft	fwd	10' 6"
                         mid	14' 0"
                         aft	17'6"
       Main Engines... 2... Geared Turbine Delaval
       Boilers... 4... Combustion Engineering


THERE HAS BEEN EXTENSIVE STRIPPING AND REMOVAL OF EQUIPMENT IN ALL
AREAS OF THE SHIP. THE SHIP HAS BEEN SUBJECTED TO PRECIOUS METALS
RECOVERY.

It is the opinion of the Government that the hull is in good condition.

Displacement tons: ESTIMATED 6,312 TONS (BASED ON WATERL1NE SURVEY)

Each bidder must inspect the ship.

MAJOR ITEMS OF EQUIPMENT REMAINING ON BOARD THE SHIP:

Industrial Plant Equipment                 Location
       1.  Buffalo N18 Drill Press           2-152-0-Q
       2.  Pexto Mod G-52 Dropshear          a
       3.  U.S. Tool 10" Benchgrinder
       4.  Leblond 4' X 10" Lathe
       5.  Peerless 17" PWR Hacksaw          "


Other Equipment and Material

       1.  Miller Welder (2 ea)             2-152-0-Q
       2.  Galley Equipment              1-92-0-L
       3.  Dryrod 550 Degree F Rod Oven    2-152-0-Q
       4.  Miller Welder SRH-333           1-72-2-L

The Main Anchor and chain are not included as part of the ship sale.
                                     20

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                                     31-8018



This ship must be scrapped to the extent specified in Article SJ.

DEMIL CODE: D

DEMILITARIZATION: Keypoint demilitarization was previously completed so as to preclude
restoration or repair to a usable condition. All guided missile launching systems, mounts and fire
control systems; sonar domes, transducers and associated equipment; torpedo tubes, mounts and any
other weapon systems must be further and totally destroyed by melting, cutting, tearing, scratching,
crushing or breaking the item and components.

CONTACT: PETE GALASSI PHONE (360)476-3510

LOCATION: SUISUN BAY RESERVE FLEET, BENECIA, CA

                                  1EACH

END USE CERTIFICATE AND STATEMENT OF INTENT APPLIES AND MUST BE
COMPLETED AND SUBMITTED WITH BIDS FOR THIS ITEM.
6.  SHIP, FRIGATE, EX-MEYERKORD, FF-1058

       BUILT BY TODD SHIPYARDS, COMPLETED JULY 1966, STEEL HULL WITH
ALUMINUM SUPERSTRUCTURE, ONE BRONZE PROPELLER

       CHARACTERISTICS

       Length	438'0"
       Beam	46'0"
       Draft	fwd	10'8"
                          aft	15'8"
       Main Engines...!... Westinghouse
       Boilers...2...Babcox & Wilcox or Foster-Wheeler

THERE HAS BEEN EXTENSIVE STRIPPING AND REMOVAL OF EQUIPMENT IN ALL
AREAS OF THE SHIP. THE SHIP HAS BEEN SUBJECTED TO PRECIOUS METALS
RECOVERY.

It is the opinion of the Government that the hull is in good condition.

DISPLACEMENT TONS: ESTIMATED 3,011 TONS (BASED ON WATERLINE SURVEY)

Each bidder must inspect the ship.

This ship must  be scrapped to  the extent specified in Article SJ.

DEMIL CODE: D

DEMILITARIZATION:  Keypoint  demilitarization was previously completed so as to preclude
restoration or repair to a usable condition. All guided missile launching systems, mounts and fire
control systems; sonar domes, transducers and associated equipment; torpedo tubes, gun mounts and
                                       21

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                                  31-8018
any other weapon systems must be further and totally destroyed by melting, cutting, tearing,
scratching, crushing or breaking the item and components.
CONTACT: PETE GALASSI PHONE (360)476-3510

LOCATION: SUISUN BAY RESERVE FLEET, BENECIA, CA

              3                     1 EACH

THE SHIPS ANCHOR AND CHAIN ARE NOT INCLUDED IN SALE. SHORE POWER
SWITCHBOXES AND THE FLOOD ALARM SYSTEM ARE NOT INCLUDED IN THE SALE.

END USE CERTIFICATE AND STATEMENT OF INTENT APPLIES AND MUST BE
COMPLETED AND SUBMITTED WITH BIDS FOR THIS ITEM.
                                   22

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                                      31-8018


 LPT2

  7. GUIDED MISSILE CRUISER, EX-HALSEY, CG-23:

       BUILT BY SAN FRANCISCO NAVAL SHIPYARD, COMPLETED JANUARY 1962,
 STEEL HULL WITH ALUMINUM SUPERSTRUCTURE

       CHARACTERISTICS

       Length	533'0"
       Beam	.54' 9"
       Draft	fwd	12' 0"
                          mid	15' 6"
                          aft	19'0"
       Main Engines...2... Allis Chalmers
       Boilers...4...Combustion Engineering

 THERE HAS BEEN EXTENSIVE STRIPPING AND REMOVAL OF EQUIPMENT IN ALL
 AREAS OF THE SHIP.  THE SHIP HAS BEEN SUBJECTED TO PRECIOUS METALS
 RECOVERY.

 It is the opinion of the Government that the hull is in good condition.

 Displacement tons:  ESTIMATED 5,985 TONS (BASED ON WATERLINE SURVEY)

 Each bidder must inspect the ship.

 MAJOR ITEMS OF EQUIPMENT REMAINING ON BOARD THE SHIP:

 Industrial Plant Equipment                   Location
       1.  Shipley Lathe 14"                1-73-3-Q
       2.  Buffalo Mod 18 Drill Press


 Other Equipment and Material

       1.  Galley Equipment                1-92-0-L

 The Main Anchor and chain are not included as part of the ship sale.

 This ship must be scrapped to the extent specified in Article SJ.

 DEMTL CODE: D

 DEMILITARIZATION:  Keypoint demilitarization was previously completed so as to preclude
 restoration or repair to a usable condition. All guided missile launching systems, mounts and fire
 control systems; sonar domes, transducers and associated  equipment; torpedo tubes, ASROC
 launchers and any other weapon systems must be further and totally destroyed by melting, cutting,
 tearing, scratching, crushing or breaking the item and components.


CONTACT: PETE GALASSI PHONE (360)476-3510
                                       23

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                                     31-8018


LOCATION: SUISUN BAY RESERVE FLEET, BENECIA, CA

                                 1EACH

END USE CERTIFICATE AND STATEMENT OF INTENT APPLIES AND MUST BE
COMPLETED AND SUBMITTED WITH BIDS FOR THIS ITEM.


8. GUIDED MISSILE CRUISER, EX-LEAHY, CG-16:

       BUILT BY BATH IRON WORKS CORPORATION, COMPLETED JULY 1961, STEEL
HULL WITH ALUMINUM SUPERSTRUCTURE

       CHARACTERISTICS

       Length	533' 0"
       Beam	54'9"
       Draft	fwd	12' 6"
                         mid	16'0"
                         aft	20'0"
       Main Engines...2... General Electric
       Boilers...4...Babcox & Wilcox

THERE HAS BEEN EXTENSIVE STRIPPING AND REMOVAL OF EQUIPMENT IN ALL
AREAS OF THE SHIP.  THE SHIP HAS BEEN SUBJECTED TO PRECIOUS METALS
RECOVERY.

It is the opinion of the Government that the hull is in good condition.

Displacement tons: ESTIMATED 4,650 TONS (BASED ON WATERLINE SURVEY)

Each bidder must inspect the ship.

MAJOR ITEMS OF EQUIPMENT REMAINING ON BOARD THE SHIP:

Industrial Plant Equipment                  Location
       1.  Clausan 17" Lathe                1-73-3-Q


Other Equipment and Material

       1.  Saturn T-1000 Gas Turbine        1-20-0-E

The Main Anchor and chain, 3 ea. 14500* anchors (01-166-0), 7 ea. 130008 anchors (fantail), and 3
ea. 160000 anchors (bow) are not included as part of the ship sale.

This ship must be scrapped to the extent specified in Article SJ.

DEMTL CODE: D

DEMILITARIZATION: Keypoint demilitarization was previously completed so as to preclude
restoration or repair to a usable condition. All guided missile launching systems, mounts and fire
control systems; sonar domes, transducers and associated  equipment; torpedo tubes, ASROC
                                       24

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                                    31-8018
launchers and any other weapon systems must be further and totally destroyed by melting, cutting,
tearing, scratching, crushing or breaking the item and components.

CONTACT: PETE GALASSI PHONE (360)476-3510

LOCATION: SUISUN BAY RESERVE FLEET, BENECIA, CA

                                 1 EACH

END USE CERTIFICATE AND STATEMENT OF INTENT APPLIES AND MUST BE
COMPLETED AND SUBMITTED WITH BD)S FOR THIS ITEM.


9. GUIDED MISSILE CRUISER, EX-ENGLAND, CG-22:

       BUILT BY TODD SHIPYARD CORPORATION, COMPLETED MARCH 1962, STEEL
HULL WITH ALUMINUM SUPERSTRUCTURE

       CHARACTERISTICS

       Length	533'0"
       Beam	54'9"
       Draft	fwd	10'0"
                        mid	14'3"
                         aft	18'6"
       Main Engines...2... Delaval
       Boilers...4...Combustion Engineering

THERE HAS BEEN EXTENSIVE STRIPPING AND REMOVAL OF EQUIPMENT IN ALL
AREAS OF THE SHIP. THE SHIP HAS  BEEN SUBJECTED TO PRECIOUS METALS
RECOVERY.

It is the opinion of the Government that the hull is in good condition.

Displacement tons: ESTIMATED 6,023 TONS (BASED ON WATERLINE SURVEY)

Each bidder must inspect the ship.

MAJOR ITEMS OF EQUIPMENT REMAINING ON BOARD THE SHIP:

Industrial Plant Equipment                  Location
       1.  Clausing Lathe 17" X 5'           2-72-3-Q


Other Equipment and Material

       1.  Miller Welder                  2-72-3-Q
       2.  Galley Equipment               1-92-0-L
       3.  Saturn T-1000 Gas Turbine        1-20-0-E
       4.  Cissell SOIb Dryers (2 ea)          2-194-0-Q
       5.  Forenta Presses (3 ea)               "
       6.  Dynawash Mod PNSWE              "
                                      25

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                                     31-8018
The Main Anchor and chain, ribbon boards (exterior bridge P/S), and 3 ea. Yokohama 32x50 fenders
(01-158-0-A) are not included as part of the ship sale.

This ship must be scrapped to the extent specified in Article SJ.

DEMIL CODE: D

DEMILITARIZATION: Keypoint demilitarization was previously completed so as to preclude
restoration or repair to a usable condition. All guided missile launching systems, mounts and Tire
control systems; sonar domes, transducers and associated equipment; torpedo tubes, ASROC
launchers and any other weapon systems must be further and totally destroyed by melting, cutting,
tearing, scratching, crushing or breaking the item and components.

CONTACT: PETE GALASSI  PHONE (360)476-3510

LOCATION: SUISUN BAY RESERVE FLEET, BENECIA, CA

                                 1 EACH

END USE CERTIFICATE AND STATEMENT OF INTENT APPLIES AND MUST BE
COMPLETED AND SUBMITTED WITH BIDS FOR THIS ITEM.


10. GUIDED MISSILE CRUISER, EX-GRTDLEY, CG-21:

       BUILT BY PUGET SOUND BRIDGE & DRY DOCK COMPANY, COMPLETED JULY
1961, STEEL HULL WITH  ALUMINUM SUPERSTRUCTURE

       CHARACTERISTICS

       Length	533'0"
       Beam	54'9"
       Draft	fwd	12'0"
                         mid	15' 6"
                         aft	19'0"
       Main Engines...2...  Delaval
       Boilers...4...Combustion Engineering


THERE HAS BEEN EXTENSIVE STRIPPING AND REMOVAL OF EQUIPMENT IN ALL
AREAS OF THE SHIP. THE SHIP HAS BEEN SUBJECTED TO PRECIOUS METALS
RECOVERY.

It is the opinion of the Government that the hull is in good condition.

Displacement tons: ESTIMATED 4,650 TONS (BASED ON WATERLINE SURVEY)

Each bidder must inspect  the ship.

MAJOR ITEMS OF EQUIPMENT REMAINING ON BOARD THE SHIP:

Industrial Plant Equipment                  Location
       1.  Leblond Regal Mod 13C Lathe      1-72-3-Q
                                      26

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                                      31-8018
       2.   Bridgeport Mod 12 Brt Mill Mach      "
       3.   Dale Arbor Press                    "
       4.   Buffalo Mod 18 Drill Press            "
       5.   Benchgrinder 10"

Other Equipment and Material

       1.   Miller Welder                   1-72-3-Q
       2.   Galley Equipment                1-92-0-L
       3.   Saturn T-l 000 Gas Turbine        1-20-0-E
       4.   Cissell SOlb Dryers (2 ea)          2-194-0-Q
       5.   Forenta Presses (3 ea)                 a
       6.   Dynawash Mod PNSWE               tt

The Main Anchor and chain, ribbon boards (exterior bridge P/S), 5 ea. 13000# anchors (fantail), and
2 ea. 20000# anchors (fantail) are not included as part of the ship sale.

This ship must be scrapped to the extent specified in Article SJ.

DEMILITARIZATION: Keypoint demilitarization was previously completed so as to preclude
restoration or repair to a usable condition. All guided missile launching systems, mounts and fire
control systems; sonar domes, transducers and associated equipment; torpedo tubes, ASROC
launchers and any other weapon systems must be further and totally destroyed by melting, cutting,
tearing, scratching, crushing or breaking the item and components.
DEMIL CODE: D

CONTACT: PETE GALASSI PHONE (360)476-3510

LOCATION: SUISUN BAY RESERVE FLEET, BENECIA, CA

                                   1 EACH

END USE CERTIFICATE AND STATEMENT OF INTENT APPLIES AND MUST BE
COMPLETED AND SUBMITTED WITH BIDS FOR THIS ITEM.


11. GUIDED MISSILE CRUISER, EX-REEVES, CG-24:

       BUILT BY PUGET SOUND NAVAL SHIPYARD, COMPLETED MAY 1962, STEEL
HULL WITH ALUMINUM SUPERSTRUCTURE

       CHARACTERISTICS

       Length	533'0"
       Beam	54'9"
       Draft	fwd	14'2"
                          aft	16'9"
       Main Engines... 2... Geared  Turbines, Allis Chalmers
       Boilers... 4... Foster Wheeler
                                        27

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                                     31-8018
THERE HAS BEEN EXTENSIVE STRIPPING AND REMOVAL OF EQUIPMENT IN ALL
AREAS OF THE SHIP. THE SHIP HAS BEEN SUBJECTED TO PRECIOUS METALS
RECOVERY.

It is the opinion of the Government that the hull is in fair condition.

Displacement tons: ESTIMATED 5,611 TONS (BASED ON WATERLINE SURVEY)

Each bidder must inspect the ship.

MAJOR ITEMS OF EQUIPMENT REMAINING ON BOARD THE SHIP:

Industrial Plant Equipment
       1.  Hydraulic Press
       2.  Milling Mach
       3.  Grinder


Other Equipment and Material

       1.  (4) Steam Presses
       2.  (2) Washers
       3.  (3) Dryers

The Main Anchor and chain, fire and flooding alarm system, fenders, chains, wire and mooring lines
are not included as part of the ship sale.

This ship must be scrapped to the extent specified in Article SJ.

DEM1L CODE: D

DEMILITARIZATION: Keypoint demilitarization was previously completed so as to preclude
restoration or repair to a usable condition. All guided missile launching systems, mounts and fire
control systems; sonar domes, transducers and associated equipment; torpedo tubes, ASROC
launchers and any other weapon systems must be further and totally destroyed by melting, cutting,
tearing, scratching, crushing or breaking the item and components.

CONTACT: WALT LEONARD, PHONE (808)471-4521

LOCATION: NISMF PEARL HARBOR, WAIPAHU, HI 96797-3272

                                 1EACH

END USE CERTIFICATE AND STATEMENT OF INTENT APPLIES AND MUST BE
COMPLETED AND SUBMITTED WITH BIDS FOR THIS ITEM.


12. GUIDED MISSILE CRUISER, EX-WORDEN, CG-18:

       BUILT BY BATH IRON WORKS CORPORATION,  COMPLETED JUNE 1962, STEEL
HULL WITH ALUMINUM SUPERSTRUCTURE

       CHARACTERISTICS
                                      28

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                                      31-8018
       Length	533'0"
       Beam	54'9"
       Draft	fwd	14'9"
                           aft	16'5"
       Main Engines... 2... Geared Turbines, General Electric
       Boilers... 4... Babcox and Wilcoz
THERE HAS BEEN EXTENSIVE STRIPPING AND REMOVAL OF EQUIPMENT IN ALL
AREAS OF THE SHIP. THE SHIP HAS BEEN SUBJECTED TO PRECIOUS METALS
RECOVERY.

It is the opinion of the Government that the hull is in fair condition.

Displacement tons: ESTIMATED 5,267 TONS (BASED ON WATERLINE SURVEY)

Each bidder must inspect the ship.

MAJOR ITEMS OF EQUIPMENT REMAINING ON BOARD THE SHIP:

Industrial Plant Equipment
       1.  (2) Welding Machines
       2.  (1) Lathe
       3.  (1) Drill Press
       4.  Vices


Other Equipment and Material

       1.  (3) Steam Presses
       2.  (3) Washers
       3.  (2) Dryers

The Main Anchor and chain, fire and flooding alarm system, fenders, chains, wire and mooring lines
are not included as part of the ship sale.

This ship must be scrapped to the extent specified in Article SJ.

DEMIL CODE: D

DEMILITARIZATION: Keypoint demilitarization was previously completed so as to preclude
restoration or repair to a usable condition. All guided missile launching systems, mounts and fire
control systems; sonar domes, transducers and associated equipment; torpedo tubes, ASROC
launchers and any other weapon systems must be further and totally destroyed by melting, cutting,
tearing, scratching, crushing or breaking the item and components.


CONTACT: WALT LEONARD, PHONE (808)471-4521

LOCATION: NISMF PEARL HARBOR, WAIPAHU, HI 96797-3272

                                   1EACH
                                        29

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                                     31-8018
END USE CERTIFICATE AND STATEMENT OF INTENT APPLIES AND MUST BE
COMPLETED AND SUBMITTED WITH BIDS FOR THIS ITEM.
                                INDIVIDUAL ITEM

  13. AIRCRAFT, CARRIER, EX-ORISKANY, CVA-34:

       BUILT BY NEW YORK NAVY YARD, COMPLETED OCTOBER 1945, STEEL HULL

        CHARACTERISTICS

       Length Overall	910' 7"

       Length between perpendiculars	820' 0"
       Frame Spacing	4' 0"
       Projection FWD of FWD Perpendiculars	50' 8"
       Projection AFT of AFT Perpendiculars	40' 1"
       Breadth Extreme Flight Deck	193' 0"
       Breadth, molded, Main Deck (Mid-Perp)....160' 7"
       Breadth Extreme Main Deck (Fr. 115,150)..142' 9"
       Depth, Molded, Main Deck	54' 8"
       Depth, Molded, Forecastle Deck	63' 1"
       Draft Forward	21' 3"
       Draft Aft	26' 3"
       Height (highest point on ship)	132' 0"
       Length, Vertical Keel	664' 0"
       Length, Beam Ratio	7.73

THERE HAS BEEN EXTENSIVE STRIPPING AND REMOVAL OF EQUIPMENT IN ALL
AREAS OF THE SHIP. THE SHIP HAS BEEN SUBJECTED TO PRECIOUS METALS
RECOVERY.

It is the opinion of the Government that the hull is in fair condition.

Displacement tons: ESTIMATED 31,850 TONS (BASED ON WATERLINE SURVEY)

Each bidder must inspect the ship.

MAJOR ITEMS OF EQUIPMENT REMALNING ON BOARD THE SHIP:

4 ea.   Turbines, Main Propulsion, high pressure, Westinghouse
4 ea.   Turbines, Main Propulsion, low pressure, Westinghouse
4 ea.   Gear, Reduction, Main Propulsion, Westinghouse
4 ea.   Propellers/Shafts, Main Propulsion
8 ea.   Boilers, Babcox and Wilcox
16 ea.   Blower, Force draft
4 ea.   Condensers, main
2 ea.   Deaireating tank
4 ea.   Condenser, auxiliary
3 ea.   Generator, Ship service, 1700 KW A/C
5 ea.   Pump, Condensate
                                       30

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                                          31-8018
 3 ea.   Pump, Circulating
 7 ea.   Pump, Fire and Flushing
 S ea.   Pump, Main Feed, Steam
 4 ea.   Pump, Main Fuel
 4 ea.   Pump, Main Fuel Oil Boster, Steam
 4 ea.   Pump, Lube Oil, Steam
 2 ea.   Pump, Saltwater, Electric
 3 ea.   Pump, Brine
 1 ea.   Pump, Condensate
 1 ea.   Pump, Distillate
 2 ea.   Pump, Steering Gear, Hydraulic
 2 ea.   Evaporator, Plant, Triple Effect
 1 ea.   Evaporator, Plant
 5 ea.   Compressor, Air Electric
 2 ea.   Generator, Emergency, 850 KW AC, Fairbanks Morse

 Hanger Deck:

 8 ea.   Winches, Electric
 1 ea.   Antenna, Pedestal

 Numerous Life Vest Racks.

 Ammunition Magazine:

 4 ea.   Compasses, Repeaters

 Various Electric motors, search lights, work lights, running lights, florescent area lights, electrical
 cable and  electrical boxes.

 Print Shop:

 1 ea.   Paper Drill
 1 ea.   Paper Cutter
 3 ea.   Printers

 Sheet Metal Shoo:

 1 ea.   Drill Press
 1 ea.   Hack Saw

 Machine Shop:

 1 ea.    Drill Press
 1 ea.    Mill
 1 ea.    Grinding Wheel
 2 ea.    Lathers
This ship must be scrapped to the extent specified in Article SJ.

DEMIL CODE: D

CONTACT: PETE GALASSI PHONE (360)476-3510


                                           31

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                                     31-8018



LOCATION: MARE ISLAND NAVAL SHIPYARD, VALLEJO, CA

                                 1EACH

THERE ARE TANKS OF BALLAST WATER ON BOARD THAT CONTAIN REGULATED
AMOUNTS OF SODIUM CHROMATE. PURCHASER IS CAUTIONED THAT IT IS SOLELY
RESPONSIBLE TO ASCERTAIN THE EXTENT TO WHICH FEDERAL ENVIRONMENTAL
LAWS AND OTHER STATE AND LOCAL STATUES AND REGULATIONS MAY AFFECT IT
AND COMPLY THEREWITH.

STRIPPING:  CUT AND REMOVE THE SHIPS NAME FROM THE STERN OF THE SHIP.
CUT AT LEAST SIX (6) INCHES AROUND THE RAISED LETTERING. CONTACT THE
FOLLOWING FOR PICKUP:

       NATIONAL MUSEUM OF NAVAL AVIATION
       ROBERT MACON, DIRECTOR
       1750 RADFORD BLVD, SUITE C
       PENSACOLA, FL 32508-4502
       TEL: 850-452-3604, X119
DECLASSIFICATION: Declassification was previously completed. However, unclassified
documents labeled "For Official Use Only", primarily located in the Supply Department Office,
Compartment B-201-2-L, must be removed and destroyed as a condition of sale.

DEMILITARIZATION: See enclosure 10, Demilitarization Certification, to the pre-disposal
documentation provided at the time of inspection. The following items require demilitarization as
specified in enclosure 10:

       Catapult Cylinders
       Catapult Covers
       Sonar Transducers
       Aircraft Carrier Catapults
     <  Arresting Gear

       Keypoint demilitarization was previously completed so as to preclude restoration or repair
to a usable condition. AH gun mounts and any other weapon systems must be further and totally
destroyed by melting, cutting, tearing, scratching, crushing or breaking the item and components.
Additionally, catapults  and arresting gear equipment must be removed and demilitarized in
accordance with NAVSEA Ltr 4710 ser 335D/2391 of 18 Jul 95, a copy of which is included in the
pre-disposal documentation provided during the mandatory ship inspection prior to submission of
proposals.

CONDITION OF SALE REMOVALS: As a condition of sale, the purchaser is required to remove
(without further demilitarization) the SPS-30 Radar Antenna and the SPS-37/43 Radar Antenna
Pedestal and large round reflector, stowed In the hanger bay, and make it available for pickup by the
Aircraft Carrier Hornet Foundation (ACHF). ACHF point of contact is Pete Clayton, (619)461-
9579.

END USE CERTIFICATE AND STATEMENT OF INTENT APPLIES AND MUST BE
COMPLETED AND SUBMITTED WITH BIDS FOR THIS ITEM.
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A.  ENVIRONMENTAL AND SAFETY INFORMATION INSTRUCTIONS AND TERMS
AND CONDITIONS:

 Bidders are advised that they, not the Government, are responsible for obtaining all hazardous
property information necessary to satisfy all standards required of a ship owner regarding the
location, quantity, and content of asbestos on the ship(s) under 29 CFR  1915.1001(k), as well as
for the information necessary to satisfy any other standards required of a ship/facility owner
regarding the location, quantity, and content of any other hazardous property absent on the
ship(s) offered under this IFB. under any other Federal or state statute or regulation. As the
contracting activity, DRMS will provide all information available to it regarding hazardous
property on the ship(s) offered under this IFB. However, it is the bidder's responsibility to
ensure that the standards cited above, as well as any other Federal, state, or local laws or
regulations pertaining to these ship(s), are complied with.

FUEL OIL RESIDUALS: The Purchaser is cautioned that fuel oil residuals that are present on
these ship(s) may be a RCRA regulated waste. Pre-disposal documentation includes liquid load
documentation which provides tank soundings and the volume of fuel oil icmaining after
stripping to low suction.

SODIUM CHROMATE: All tanks containing water which  was added prior to 1990 for stability
purposes while the ship was active or undergoing inactivation have been tested for sodium
chromate concentrations. The pre-disposal documentation included these results and identified
any water tanks that remain on board with regulated concentrations of chromate.

COATINGS:  Ships of this type contain paint coatings that are lead or zinc oxide or chromate
based.  Due to the age of the ships, all coating must be assumed to be lead and/or zinc chromate
based.  The purchaser must implement controls required by OSHA and other regulations
concerning worker safety and environmental compliance.

ASBESTOS:

(A) Ships  of this type contain asbestos in the following applications:
       bulkhead and pipe insulation
       bulkhead fire shield
       uptake space insulation
       exhaust duct insulation
       some  electrical cable materials
       brake linings
       floor tiles and deck underlay
       steam, water and vent flange gaskets
       flexitalic gaskets
       garlock seals
       shaft packing
       valve  packing
       pipe hanger inserts
       weld shop protectors and bum covers
       any other type of thermal insulating material
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                                      31-8018
(B) The access door(s) to compartments containing asbestos insulation have been labeled to
indicate that asbestos is present and whether the asbestos insulation is in a triable or non-friable
condition.  The pre-disposal documentation includes a Asbestos Survey Report which is a
compartment listing which is provided at the time of inspection. The compartment listing does
not represent or characterize the total quantity of asbestos containing materials (ACM)
throughout the ship. Bidders are cautioned that ACM may also be located underneath non-
asbestos containing material. The compartment listing provides notification that ACM is present
and whether it is in a friable or non-friable condition. Asbestos is a major health hazard as it
enters the air as fibers or dust through operations such as ripout and removal. Compliance with
OSHA (29 CFR, Part 1910), EPA (40 CFR, Part 61.02) and other agencies' regulations is
required to ensure worker safety and proper disposal of asbestos containing materials. Access to
the area shall be restricted to persons whose work requires their presence. Posted asbestos
warning signs are not intended to substitute for asbestos danger signs required during asbestos
remediation work. THE GOVERNMENT EXPRESSLY DOES NOT WARRANT OR
REPRESENT THAT COMPARTMENTS NOT POSTED WITH ASBESTOS WARNING
LABELS DO NOT CONTAIN ASBESTOS.

(C) The Purchaser shall be responsible for removing and disposing of all Asbestos in accordance
with applicable Federal, State, and  local laws and regulations.  Further, each bidder shall rely on
his own inspection in determining the method and extent of asbestos removal required under
applicable laws and regulations. THE GOVERNMENT EXPLICITLY DOES NOT WARRANT
THAT THE ITEMS IDENTIFIED  IN THE ASBESTOS SURVEY REPORT ARE THE ONLY
ITEMS WHICH CONTAIN ASBESTOS IN REGULATED QUANTITIES.

PCB ITEMS:

(A) A polychlorinated biphenyl (PCB) inventory of all electrical and electronic equipment that
contain or are suspected to contain  PCB transformers and large capacitors has been
accomplished and  is provided with the pre-disposal documentation at the time of inspection.
PCB labels are attached to the equipment for easy identification and each equipment is assigned
a serialized number on the inventory for tracking purposes. This inventory represents the Navy's
knowledge of the quantity of PCB  transformers and large capacitors on board.  THE
GOVERNMENT EXPLICITLY DOES NOT WARRANT THAT THE ITEMS IDENTIFIED IN
THE PCB INVENTORY OR ITEMS POSTED ARE THE ONLY ITEMS WHICH CONTAIN
PCBs IN REGULATED QUANTITIES.

(B) A PCB sampling and laboratory analysis survey has been accomplished of potentially PCB
solid materials on the ship and is provided with the pre-disposal documentation at the time of
inspection. PCBs in concentrations regulated by Federal, State, and local laws and regulations
exist on board the ship. The PCB Survey was distributed to parties who inspected the ships. The
following applications may be found to contain regulated concentrations of solid PCBs:

       Ventilation duct flange gaskets, felt and rubber;
       Electrical cable insulation and other non-metallic components of cable;
       Fluorescent light ballast starters and potting;
       Bulkhead and pipe insulation;
       Foam rubber/plastic anti-sweat insulation used on hull surfaces and cold water piping;
       Cork hull anti-sweat insulation;
       Other rubber items such as  pipe hanger rubber blocks, snubbers, bumpers, shock and
                                        34

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                                      31-8018
         vibration mounts, pads, spools, hatch gaskets, 0-rings, packing and grommets, etc.;
       Adhesive tapes and double-backed adhesive tapes;
       Aluminized paints;
       Any gloss oil-based paints; any oils and greases.

All regulated PCB items must be removed and disposed of in accordance with applicable
Federal, State, and local regulations.
THE GOVERNMENT EXPLICITLY DOES NOT WARRANT THAT THE PCB ITEMS
IDENTIFIED IN THE SURVEY REPORT ARE THE ONLY REGULATED PCB ITEMS ON
BOARD, NOR THAT THE SURVEY REPORT IS REPRESENTATIVE OF THE QUANTITY
OF PCB CONCENTRATIONS IN ALL LOCATIONS OR MATERIALS ON BOARD.

(C) The Purchaser shall be responsible for identifying, handling, and disposing of all items
containing PCB contamination in quantities regulated under applicable Federal, State, and local
laws and regulations in accordance with applicable Federal, State, and local laws and regulations.
(See Sale by Reference, including Part 7, Article R, and Invitation for Bids Conditions of Sale,
Articles SB, SE, SG, SJ, and SL).

OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION (OSHA) REGULATIONS:
At a minimum, dismantling and scrapping must be in accordance with OSHA regulations at 29
CFR Parts 1910 and 1915, Shipbreaking.

ENVIRONMENTAL PROTECTION: All bidders are advised that they must comply with all
applicable Federal, State, and local laws, ordinances, regulations, etc., with respect to human
safety and the environment during the processing, use or disposal of material purchased from the
Department of Defense under this contract.

REGULATED SUBSTANCES:  PCB, asbestos or other hazardous or toxic items or components
not identified in the item description may remain on the ship being offered in this Invitation for
Bids.  Strict adherence to Federal environmental statutes, U.S. Environmental Protection
Agency (EPA) regulations. State and local environmental laws and regulations are required for
this item. Purchaser is cautioned that it is solely responsible to ascertain the extent to which
Federal environmental laws and other State and local statutes and regulations may effect it and
comply therewith.

RESOURCE CONSERVATION AND RECOVERY ACT NOTICE: EPA Hazardous Waste
Regulations, 40 CFR Part 260 et seq.. published at 45 Federal Register 33063-33285, May 19,
1980, became effective on November 19,  1980. These cradle-to-grave regulations detail the
responsibilities of generators, transporters, treaters, storers, and disposers of hazardous waste.
Civil and criminal penalties are available for noncompliance. While the material offered under
this solicitation is not subject to these regulations in its present form, subsequent actions taken
with regard to the material may cause a hazardous waste to come into existence.  Bidders are
cautioned that he is solely responsible to ascertain the extent to which these regulations effect it
and comply  therewith.
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                                      31-8018
B. TERMS & CONDITIONS OF SALE

IN ADDITION TO THE ABOVE, THE FOLLOWING IS ALSO INCORPORATED AS PART
OF THIS SALE

The following General Information and Instructions and Special Conditions of Sale contained in
Defense Reutilization and Marketing Service pamphlet entitled "Sale by Reference -
Instructions, Terms and Conditions Applicable to Department of Defense Personal Property
Offered for Sale by Defense Reutilization and Marketing Service, March 1994", are hereby
incorporated by reference and become a part of this IFB and any resulting contract:

       Part 1:  General Information and Instructions (DRMS Form  81, Oct 93).

       Part 2:  General Sale Terms and Conditions (Standard Form  114C, Jun 86 cu.; and
DRMS Form 84, Oct 93), All Conditions, except Condition No.s 4, 7, 9, 28, and 30.

       Part 3:  Special Sealed Bid Conditions (Standard Form 114C-1, Jan 70 ed.; and DRMS
Form 99, Oct 93), All Conditions except Condition A, and D.  Condition E applies to
predetermined lots only.  Condition E does not apply to individual line items in this IFB.

       Part 5:  Additional Special Circumstance Conditions (DRMS Form 86, Oct 93) as
follows:

                     Article B:  Convict Labor
                     Article C:  Contract Work Hours and Safety Standards Act-Overtime
                               Compensation
                     Article D:  Liability and Insurance
                     Article E:  Paper Records and Documents
                     Article F: Privacy Act Materials
                     Article I:  Military Munitions List Items (MLI)
                     Article K:  Munitions List and Strategic List Items (MLI/SLI)
                               Compliance

       Part 6:  Additional Special Circumstance Conditions- demilitarization and Mutilation
(DRMS Form 95, Oct 93) as follows:

                     Article B:  Demilitarization or Mutilation on Other Than Government
                              Premises
                     Article D:  Change in Contract Requirements
                     Article E: Qualification of Bidders
                     Article F: Subcontracts
                     Article G:  Government May Enter Premises
                     Article H:  Mutilation of Chlorobromomethane Fire Extinguishers

       Part 7:  Additional Special Circumstance Conditions-Hazardous and Dangerous Property
(DRMS Form 98, Oct 93) as follows:

                            Article C:  Transporting Hazardous Material
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                                      31-8018
                           Article E:
                           Article F:
                           "Article J:
                           'Article L:
                           •Article M
                           •Article N
                            •Article O
                            Article R:
                            Article S:
                            Article U:
                            Article W:
  Dangerous Property
  Compressed Gas Cylinders
 Respiratory Protection Program
 Asbestos
: Packaging, Marking and Disposal of Asbestos
:    Asbestos Dust Control, Housekeeping and
Clean-Up
 Procedure
: Protective Clothing
 Disposition and Use of Hazardous Property
 Government's Right of Surveillance
 Record Maintenance
 Radioactive Material
* SEE REVISIONS TO THESE ARTICLES IN THIS IFB
C. THE FOLLOWING DRMS SHIP SALE ARTICLES (Not Part of Sale By Reference)
ALSO APPLY AND CONSTITUTE TERMS AND CONDITIONS OF SALE:
Reporting Articles
                     Article SN: Records, Progress Schedule, and Progress Report
                     Article SS: Incident Reporting
Environmental Articles
                     Article SB:  Manifesting
                     Article SE:  Generator Duties
                     Article SG:  State Regulated Hazardous Waste
                     Article SK:  Hazardous Property
                     Article SL:  Permits
                     Article SQ:  Scope of Work (Asbestos)
                     Article ST:  Use of TSDFs and Transporters
                     Article TA:  Segregation of Hazardous Waste
Payments, Defaults and Penalty Articles
                     Article SI:  Storage Charges/Late Removal Charges
                     Article SO: Default in Performance of Scrapping,
                               Demilitarization and/or Stripping
                     Article SP: Default (Failure to Pay or Remove Ship(s) Within
                               Time Required by the Contract
                     Article SH: Bid Deposit and Payment
Operational Articles
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Other Articles
                                       31-8018
                     Article SJ:  Scrap Warranty
                     Article SC: Contract Performance
                     Article TC: Removal
                     Article SA: Title
                     Article SF: Risk of Loss
                     Article SM: Government Right of Inspection and Surveillance
                     Article SR: Prohibition on Use of Ship
                     Article SU: Termination for the Convenience of the Government
                     Article SV: Stop Work Order
                     Article SW: Contract Award
                     Article SX: Performance Bond
                     Article SY: Classified Material
                     Article SZ: Special Standards of Responsibility
                     Article TB: Severability
                     Article TC: Equal Opportunity
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                                            31-8018


Reporting Articles

ARTICLE SN:  RECORDS, PROGRESS SCHEDULE, AND PROGRESS REPORT.

(A) The Purchaser agrees to maintain all books, records detailing contract expenses and revenue, and other
    documents used to perform the contract and make such documents available to the Government for
    review and audit purposes. The Purchaser must further maintain such records for a period of two years
    after contract completion or for such a time as the Purchaser, for its own purposes, retains such books,
    records, and other documents, whichever is longer. The Purchaser agrees to furnish to the Sales
    Contracting Officer (SCO) a monthly report showing performance which has been accomplished to
    date of the report.  The report shall be submitted by the 5* calendar day of the month and shall include
    the following information:

   (1)  Progress achieved since the previous progress report including status of hazardous material
       abatement and disposal, approximate tonnage of scrap metals and equipment removed and shipped,
       and identification of the deck to which the ship has been dismantled. Also, identify the
       approximate percentage of completion of abatement and dismantling work on each ship.
   (2)  Quantity and type of hazardous material shipped for disposal during the reporting period (to
       include copies  of all manifests and other shipping or hazardous property disposal documents).
   (3)  Progress in correcting any deficiencies identified by the DRMS inspection or by regulatory
       inspection.
   (4)  Notification of any regulatory agency inspection conducted,  of any Notices of Violations, citations,
       or cautionary notices received from regulators  during the reporting period, relating to the
       performance of this contract.  Also, notification of any other documentation relating to Federal,
       state, or local administrative or legal actions arising under or relating to the contract.
   (5)  Progress expected to be achieved over the next month.
   (6)  Assessment of risks relating to timely completion of this contract.
   (7)  Status of outstanding permits/licenses required for performance of this  contract, and status of any
       existing permits/licenses due to expire within 90 days of the  Progress Report.
   (8)  Advance notice of commencement of project activities that will require notification to any
       regulatory agency by Purchaser or any of its subcontractors.

The first progress report shall be submitted to the SCO within 30 calendar days after removal of ship(s).
The Purchaser will include in the monthly progress report the Purchaser's plan to comply with the
discrepancies noted or  questions asked in writing by the SCO.

(B) Upon completion of each ship, the Purchaser shall provide a final report to include the requirements
listed above as well as  the following additional requirements:

    (1) Total dismantling labor hours;
    (2) Total abatement labor hours;
    (3) Disposal costs by wastestream;
    (4) Quantity of wastes disposed of by wastestream;
    (5) Quantity of scrap recovered  for resale to include, but not limited to, ferrous, non-ferrous, and
        equipment.

The final report shall be submitted to the SCO within thirty (30) calendar days of completion of each ship.

(c)  If the Purchaser's progress report or reports from the SCO's Representative indicate the Purchaser is
falling  behind schedule, the SCO may require the Purchaser to take such immediate steps as may be
necessary to improve Purchaser's  progress and to submit for the SCO's approval such supplemental
schedule as may be deemed necessary to demonstrate the manner in  which the  agreed rate of progress will
be regained without additional cost to the Government. Failure of the Purchaser to comply with the
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                                           31-8018
requirements of this Article will be grounds for determination by the SCO that the Purchaser is not
prosecuting the work with such diligence as will insure the completion of the Purchaser's obligations to the
Government under the terms and conditions specified in the contract.  Upon such determination, the SCO
may, upon at least 15 calendar days written notice, calculated from the date of mailing, take action in
accordance with Article SO, of the contract terms and conditions.

ARTICLE SS: INCIDENT REPORTING.

 The Purchaser must provide written notification to the SCO within 24 hours of any incident involving
injuries to personnel, spills, fires, explosions, damage to property or harm to the environment or any other
significant incidents which may arise from other performance aspects under this contract.
The purchaser shall, within one week of receipt, provide copies of any notices of violation,
citation, or other documentation relating to Federal, State, or local administrative or legal action
against the Purchaser regarding actions arising under or relating to the contract.

Safety and Occupational Health Articles

THE FOLLOWING SALE  BY REFERENCE  PART  7 ARTICLES HAVE  BEEN REVISED.
THESE ARTICLES  REPLACE  THE  ARTICLES  IN THE  SBR.

PART  7, ARTICLE  J:

Respiratory Protection Program.

Personnel shall be protected by personal protective equipment that provides  full protection of nose, mouth,
and respiratory system, in accordance with 29 CFR 1910.1001, 29 CFR 1915.1001 OSHA Standards for
Shipyard Employment and 29 CFR 1926 OSHA Standards for Construction. Personnel engaged in the
removal or demolition of pipes, structures, ships, or equipment covered or insulated with asbestos (as well
as all other applicable safety and health hazards) and in the removal or demolition of asbestos insulation or
coverings shall be provided and shall use respirators as stipulated in 29 CFR 1915.1001.  Asbestos shall be
presumed present unless shown to the contrary by bulk testing and air samplings.

PART  7, ARTICLE  L:

Asbestos.

Purchasers are warned that unprotected exposure to asbestos fibers will significantly increase the risk of
incurring four disease: Lung cancer, certain gastrointestinal cancers, mesothelioma and asbestosis.  Care
must be taken to avoid releasing or causing to be released, asbestos fibers into the atmosphere so that they
my be inhaled or ingested. The Occupational Safety and Health Administration at 29 CFR  1910.1001, 29
CFR 1915.1001 Standards for Shipyard Employment and 29 CFR 1926 OSHA Standards for Construction,
and 53  FR 35610 September 14, 1988,  sets standards for permissible exposure to airborne concentrations
of asbestos fibers, methods of compliance, personal protective equipment and other measures that must be
taken when working with, or in proximity to, asbestos, in the U.S., its territories and possessions.
Purchaser certifies that it will, as a minimum, comply with the provisions of 29 CFR 1910.1001,
1915.1001, 1926, and 53 FR 35610, September 14, 1988, in particular, 29 CFR 1915.1001(c) Permissible
exposure limits (PELS); 29 CFR 1915.1001(0  Exposure assessments and monitoring; 29 CFR
1915.1001(h)  Respirator fit testing; 29 CFR 1915.1001(j) Hygiene facilities  and practices for employees;
29 CFR 1915.1001(k) communication of hazards; and 29 CFR  1915.1001(1) Demolition or salvage of
structures, ships, and ship sections where asbestos is present in their entirety.

PART  7, ARTICLE M:

Packaging, Marking, and Disposal of Asbestos.
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                                            31-8018
        Asbestos waste, scrap, debris, bags, containers, equipment and asbestos-contaminated clothing
consigned for disposal, which may produce airborne concentrations of asbestos fibers, shall be collected
and disposed of in leak-proof, sealed, impermeable bags, as prescribed in 29 CFR 1915.1001 OSHA
Standards for Shipyard Employment, 29 CFR 1926 OSHA Standards for Construction, 29 CFR 1910.1001,
53 FR 35610, September 14, 1988, and 40 CFR 61.20 et.seq. Prior to placing in bags, asbestos wastes shall
be wet down to reduce airborne concentrations. It is essential that the waste asbestos material, whether in
bags or containers, be disposed of by burial as specified in 40 CFR, Part 260 et.seq. and 40 CFR 61.140.
                                             41

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                                            31-8018


 PART  7,  ARTICLE N:

 Asbestos Dust Control, and Housekeeping and Cleanup Procedures.

        All external surfaces where work shall be performed must be maintained free of accumulations of
 asbestos fibers to prevent further dispersion. Meticulous attention must be given to restricting the spread of
 asbestos dust and all larger forms of waste.  To the extent required by 29 CFR 1915.1001 OSHA Standards
 for Shipyard Employment, 29 CFR 1926 OSHA Standards for Construction, 29 CFR 1910.1001, and 53
 FR 35610, September 14, 1988, an impermeable dropcloth under work areas, curtains and other enclosures
 designed to contain the asbestos dust and debris shall be used to keep asbestos from being distributed over
 the general area.  To the extent required by 29 CFR 1915.1001, 1926 and 1910.1001 and 53 FR 35610,
 September 14, 1988, appropriate asbestos hazard warning signs shall remain posted until the site cleanup is
 complete and the soil, surrounding environment, water and atmosphere are tested and found safe. The
 cleanup crew should be under the direction and supervision of the Purchaser to ensure that proper cleanup
 is performed when asbestos dust/waste is present. All personnel engaged in cleaning up asbestos scrap and
 waste shall be equipped with the appropriate respiratory and protective clothing, as stipulated in 29 CFR
 1915.1001, 1910.1001, 1926 and 53 FR 35610, September 14, 1988.


 PART  7, ARTICLE 0:

 Protective Clothing.

        Purchasers will provide and require their employees to wear coveralls and other clothing that will
 cover the entire body, head, hands, and feet when they are exposed to airborne concentrations of asbestos
 fibers (as well as all other applicable safety and health hazards) as specified in the 29 CFR 1915.1001
 OSHA Standard for Shipyard Employment, 29 CFR 1926 OSHA Standards for Construction, and
 1910.1001 and 53 FR 35610, September 14, 1988.

 Environmental Articles

 ARTICLE SB: MANIFESTING.

 In the event that any item or component remaining on board the ship, whether or not identified in the
 Invitation for Bids, is subject to EPA/state regulations, the Purchaser is cautioned that it is solely
 responsible to ascertain the extent to which these  regulations  affect it and comply therewith. However, as a
 minimum, said item(s) or component(s) must be manifested with a transporter having an EPA
 Identification Number. Purchaser must complete all required manifest documents prior to each hazardous
 waste removal. Copies of the complete manifest must be provided to the SCO.

 ARTICLE SE: GENERATOR DUTIES.

 As a condition of sale of the ship(s) described herein, the Purchaser expressly a) acknowledges its duty to
 comply with the Toxic Substance Control Act, 15 U.S.C. S 2061 et seq., and the implementing regulations
 at 40 CFR Part 761; and b) agrees that it will perform all required duties, including those of the generator
 of PCB waste for any PCB item removed from the ship(s). In accordance with 40 CFR Part 761, the
 Purchaser expressly agrees that it will obtain an EPA Identification Number, arrange for all regulated
 wastes to be transported to an approved storage/disposal facility, prepare, sign and return all requisite
copies of all manifests for the PCB items removed from the ship(s), and perform all communication and
record-keeping tasks required by 40 CFR Part 761 as the generator of PCB waste. Purchaser expressly
 acknowledges its duty to comply with the Resource Conservation and Recovery Act, 42 U.S.C. 690 et seq.,
and the implementing Federal and State regulations, including expressly acknowledging that it will
perform all duties required of the generator of hazardous waste.
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                                            31-8018
ARTICLE SG:  STATE REGULATED HAZARDOUS WASTE.

Items or components remaining on board the ship offered for sale, whether or not identified in the
Invitation for Bids, may be regulated in the State where the ship will be berthed during contract
performance. Purchaser is solely responsible for ascertaining the extent to which said State regulations
effect it and for compliance therewith.

ARTICLE SK:  HAZARDOUS PROPERTY DISCLAIMER/INDEMNIFICATION.

As previously noted, the Government cautions that the items sold under this contract, or material or
substances, or component, part, constituent or ingredient therein may contain corrosive, reactive, or
ignitable constituents, or exhibit other hazardous or toxic-properties. The Government assumes no liability
for any damage to the property of the Purchaser, any person or public property, or for the personal injuries,
illness, disabilities or death to the Purchaser, Purchaser's employees or any other person subject  to the
Purchaser's control or any other person including members of the general public, arising from or incident
to the purchase, use, dismantlement, scrapping, processing, disposition, or any subsequent operation
performed upon, exposure to, or contact with any component, part, constituent or ingredient ot this item, or
substance or material whether intentional or accidental. The Purchaser agrees to hold harmless and
indemnify the Government for any and all costs and expenses incurred incident to any claim, suit, demand,
judgment, action, debt, liability costs, and attorney's fees or any other request for moneys or any other type
of relief arising from or incident to the purchase, use, dismantlement, scrapping, processing, disposition,
subsequent operation performed upon, exposure to or contact with any component, part, constituent or
ingredient of this item, material, or substance, whether intentional or accidental.

ARTICLE SL:  PERMITS.

The Purchaser shall be responsible for obtaining any necessary licenses and permits, and for complying
with all Federal, State,  and local laws and regulations in connection with the performance under  the
contract. This includes, but is not limited to, the required permits, licenses and notifications required to
transport and dispose of hazardous and toxic waste regulated by RCRA and TSCA.  This responsibility
requirement will be a matter of inquiry during the SCO's pre-award evaluation of the Purchaser's
capability to satisfactorily perform the contract.  It will also be a continuing matter of inquiry by the SCO
during the Purchaser's  performance of the sales  contract.  The Purchaser is required to provide the SCO a
copy of all necessary licenses, permits and notifications required for performance of this contract as cited
in this article or elsewhere, prior to removal of any ship from Government control. The Purchaser must
provide a copy of a signed lease for the scrapping site prior to removal, if the Purchaser does not own the
facility where ship scrapping will occur.

ARTICLE SQ:  SCOPE OF WORK (ASBESTOS).

The contract which results from the proposed sale includes the purchaser's provision of all labor, fees,
transportation, equipment and facilities necessary to comply with the terms and conditions of the contract,
including, but not limited to, the separation, stripping and removal of all asbestos so as to  render it
nonfriable if human exposure exceeds the limits specified in 29 CFR 1910.1001
ARTICLE ST: USE OF TSDFs AND TRANSPORTERS.

(A) The purchaser shall use only the transporters and treatment, storage, recycling and disposal facilities
(TSDFs) from the Qualified Facilities List and Qualified Transporters List. These lists are located on the
World Wide Web at either http://www.drms.dla.mil or http://www.drms.dla.mil/environmental/
environ.html. Purchasers who do not have access to the World Wide Web may request a copy of the above
lists from the SCO. See subparagraph (C)(l) and (2) of this Article for information on how the Purchaser
may request that a TSDF or transporter be added to the qualified lists.
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                                            31-8018
(B) DRMS has reviewed these TSDFs and Transporters in the past and has no reason to believe that they
do not meet the standards of this Article.  Inclusion of TSDFs and Transporters on the Qualified List does
not constitute a determination of the acceptability of these TSDFs and Transporters for the requirements of
this solicitation and any resultant contract or relieve the Purchaser of any responsibility for performing the
contract resulting from this solicitation. It is the purchaser's responsibility to ensure that it can perform all
work required by the IFB with the firms listed under Article ST and to propose additional firms under
Article ST, subparagraphs (c)(l)-(2) to perform the work required if the TSDFs or Transporters listed in
Article ST cannot meet the requirements.  It does not imply consent by the Government to any subcontracts
let by the purchaser in the performance of the contract resulting from this solicitation.

(C) If, during the life of the contract, the Purchaser requests approval of additional TSDFs or transporters,
the Government must be allowed a reasonable amount of time to  evaluate such requests. The Purchaser is
not relieved of his contractual obligation to remove and dispose of all hazardous substances, hazardous
materials and hazardous waste within contractual timeframes during the period the Government is
evaluating the request(s) for additional TSDF(s) or transporters.

        (1)  The Purchaser shall provide  the following information for RCRA permitted TSDFs
        including, but not  limited to: complete address, telephone number, a copy of the permit
        excerpt to include  the cover page(s), waste streams and treatment methods, closure  funding, EPA
        identification number, and regulatory point of contact.   The TSDF EPA identification number
        will be utilized to identify the facility on the DRMS Qualified TSDF list.

        (2) The Purchaser  shall provide the following information for each non-RCRA facility including,
        but not limited to:  complete address, telephone number,  a copy of the permit excerpt to include
        the cover page(s),  waste streams  and treatment methods, closure funding (if a regulated or permit
        requirement) and a federal/state/local compliance point of contact. If there is no regulatory or
        permit requirement for closure funding, comparable financial assurance coverage must be
        provided. A DRMS-created number will be assigned for approved non-RCRA facility for
        administration purposes.

(D) At any time during the period of this  contract, the Government may disapprove a proposed TSDF or a
previously approved TSDF if any of the following apply:

      ,  (1) The TSDF is currently closed.

        (2) The TSDF is identified as a significant non-complier (exhibiting RCRA Class I violations for
        groundwater monitoring, closure, post-closure, or financial responsibility), and has  not entered
        into a compliance schedule or similar action.

        (3) The TSDF has been cited via an administrative order or judicial action, and the TSDF has
        not entered into a compliance schedule or similar action  within 180 days from the time order or
        judicial action was issued.

        (4) The TSDF has exhibited a history of noncompliance (including, but not limited to RCRA
        class I and II violations, OSHA violations, State and local violations and DoT violations) or
        exhibited a lack of good faith in correcting the violations. A "good faith" effort would be
        exhibited through promptly signing a consent agreement or similar document with appropriate
        regulatory authorities, and performing in compliance with the consent agreement or similar
        document for at least six months. Repeated violations may be considered as a lack  of "good
        faith".

        (5) The TSDF has been identified as having groundwater contamination or is not acceptable
        under the State's groundwater anti-degradation policy.
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                                           31^8018
        (6) The TSDF is not permitted to and/or is not capable of handling the property proposed.

        (7) The TSDF received a negative recommendation as a result of a DRMS inspection visit
        during the preceding 12 months without substantive evidence of corrected deficiencies.

        (8) The TSDF stores/treats the waste, then ships out the regulated hazardous waste to a TSDF
        not approved by DRMS.

        (9) The TSDF's closure fund is not sufficient to protect the Government's long term interests.

        (10) A facility is unable to track property from entry to exit.

(E) At any time during the period of this contract, the Government may disapprove a proposed transporter
or a previously approved transporter if any of the following apply:

        (1) The transporter does not have the appropriate  Federal/State/local permits to transport
        property under this contract (hazardous or nonhazardous).

        (2) The transporter has exhibited a history of noncompliance (including RCRA, DoT, OSHA,
        and State and  local regulations governing hazardous materials hauling and motor carrier/marine
        safety).

        (3) The transporter has been cited via administrative order or judicial action and has not entered
        into a compliance schedule or similar action within 180 days from the time the order or judicial
        action was issued.

        (4) The transporter has not provided documentation of at least a "Satisfactory" rating from the
        Department of Transportation (DoT) Office of Motor Carriers (OMC) or California Highway
        Patrol.

(F) The Purchaser will not add a fuels blender/burner or ship any subsequent residual waste derived from
fuels blending to any facility/burner without prior approval from the SCO.

(G) Since transporters or TSDFs may be deleted at any time without notification, Purchasers should
confirm the firm is on the Qualified TSDF list  with the SCO prior to any actual usage under this contract.

ARTICLE TA: SEGREGATION OF HAZARDOUS WASTE

All hazardous waste items collected as a result of activities  on this contract must be segregated and kept
physically separate from any other items until the initial TSDF is reached. The items must be so marked
that they are readily identified to this contract throughout this period. In  addition, the Purchaser must
ensure that there is a clear  audit  trail until final treatment/disposal is accomplished.

Payments, Defaults  and Penalty Articles

ARTICLE SI: STORAGE CHARGES/LATE  REMOVAL  CHARGES.

If the Purchaser fails to remove the ship(s) in accordance with Article TC: Removal, or within any
extension of time which may have been granted by the SCO pursuant to Part 2,Condition No. 8, General
Sales Terms and Conditions, SBR Pamphlet, March 1994 (Standard Form 114C), the Government shall
have the following remedies:
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                                            31-8018
(A) Access charges for wharfage, moorage, dockage, anchorage, berthing or other services at the
following rates per day per ship including Saturdays, Sundays, and Federal holidays:

        ITEM(S)                                RATE PER DAY PER SHIP
          1-12                                          $300.00 per day

In all instances where storage charges are assessed, payment thereof must be made by the Purchaser prior
to removal of the property unless otherwise authorized by the Government. Charges for late removal will
not exceed 10 percent of the contract price of the ship(s).

(B) Exercise its rights under Article SP of this Invitation for Bids entitled "Default - Failure to Pay or
Remove Ship(s) within Time Required by the Contract."

ARTICLE SO: DEFAULT IN PERFORMANCE

In the event the Purchaser fails to complete the scrapping, demilitarization and/or stripping of the ship(s) in
accordance with the Purchaser's approved technical plan and the terms and conditions of the contract, or
fails to comply with Federal, State, and local laws and/or regulations, or fails to prosecute the work with
such diligence as will ensure the completion of the contract, and fails to correct such deficiencies within the
period of time allowed by notice required by Article SN, the Government may send the Purchaser a Cure
Notice stating the specific failure to perform and providing for a period of at least ten (10) calendar days in
which to cure the failure.  If the Purchaser has not cured the failure noted in the cure notice by the end of
the period provided, the Government may send the Purchaser a 15 calendar day written notice of default
(calculated from the date of mailing). If the Purchaser fails to  cure the default cited in the default notice
within the period (or such further period as the SCO may allow), the Government may terminate the
contract and shall have the following remedies:

        (1)  If considered to be in the best interest of the Government, the Government may physically
        repossess some or all of the ships previously removed under the conn-act for which title has not
        passed. The Purchaser shall lose all right, title, and interest which he might have otherwise have
        acquired in the ship(s) removed by the Purchaser and repossessed by the Government.  At the
        Government's election, the Purchaser shall also lose all right, title, and interest which he might
        otherwise have acquired in the ship(s) awarded but not removed under the contract. The
        Government mav resell the ship(s) previously removed and unremoved bv the Purchaser, charging
        the Purchaser with all costs incurred bv the Government  in repossessing, towing, storing, and
        reselling the property, including anv direct loss on account of the  resale and any costs associated
        with the Purchaser's failure to comply with Federal, State, and local laws and regulations.
        including but not limited to. the cost of anv fines imposed bv Federal. State, and local authorities.
        as well as for property disposal and treatment.  In addition, the Government shall be entitled  to
        retain or collect 10 percent of the original contract price as liquidated damages above and beyond
        the costs cited above to defray the indirect  costs involved in effecting repossession and reselling
        the ships.

        (2)  If, because if the extent of scrapping, demilitarization and/or stripping performed by the
        Purchaser, the SCO determines that effecting repossession of the ship(s) would be impracticable,
        then the Government shall have the right to enter the premises of the Purchaser or its
        subcontractors) and, either with its own personnel or by contract, complete the scrapping,
        demilitarization, and/or stripping of the awarded ships. The Government mav scrap and dismantle
        the ship(s) previously removed bv the Purchaser, charging the Purchaser with all costs incurred bv
        the Government in repossessing, scrapping and dismantling, and anv costs associated with issuing
        a solicitation/contract to scrap and dismantle the property, including anv direct loss on account of
        the resale and anv costs associated with the Purchaser's failure to comply with Federal. State, and
        local laws and regulations, including but not limited to. the cost of any fines imposed bv Federal.
                                               46

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                                           31-8018
        State, and local authorities, as well as for property disposal and treatment.  In addition, under no
        circumstances will the Purchaser be entitled to a refund of the purchase price.

        (3) In the event that the Purchaser fails to comply with or perform any of the terms and
        conditions of this contract, the SCO may, at his discretion, assess the purchaser liquidated
        damages in the amount of $1,000 per workday that the Purchaser is out of compliance.

ARTICLE SP: DEFAULT (FAILURE TO PAY OR REMOVE SHIP(S) WITHIN TIME REQUIRED BY
THE CONTRACT).

If, after contract award, the Purchaser fails to make payment within the time allowed by the contract, or by
failure to remove the property as required by Article TC: Removal, then the Government may send the
Purchaser a 15 calendar day written notice of default (calculated from date of mailing), and if the Purchaser
fails to cure the default cited in the default notice within that period (or such further period as the SCO may
allow), the Government may, terminate this contract in whole or in part and the Purchaser shall lose all
right, title and interest which he might otherwise have acquired in and to such property awarded under this
contract, and the Government may exercise such rights and may pursue such remedies as are provided by
law or under the contract.  The Purchaser further agrees that in the event it fails to pay for the property or
remove same in accordance with the terms of the contract and within the prescribed penod(s) of time, the
Government at its election and upon notice of default shall be entitled to retain (or collect) as liquidated
damages a sum equal to 10 percent of the purchase price of the item (or items) as to which the default has
occurred. When the Government exercises this election, it shall specifically apprise the Purchaser, either in
its original notice of default (or in a separate subsequent written notice), that upon the expiration of the
period prescribed for curing the default, 10 percent of the purchase price will be retained (or collected) by
the Government as liquidated damages.

ARTICLE SH: PAYMENT

(A)  Full payment of the contract purchase price, for the ships to be removed, is due prior to the date of
removal from Government control. Payment is considered late when the payment is not in the possession
of the SCO, or the designated representative, as of close of  business, 4:30 p.m. Eastern time on the date of
removal of each ship from Government control in accordance with Article TC: Removal. When the full
payment due date falls on a Federal holiday or other day when the facility if closed, the payment is due on
the following business day.

(B) All payments, including those for storage charges, liquidated damages, and interest, must be in U.S.
currency in the form of cash, cashier's check, certified check, traveler's check, bank draft, money order or
credit card (Mastercard or Visa only).  When a credit card is used as payment, the credit card number, the
name as printed on the credit card, and the expiration date must be provided. If more than one credit card
is used, the Purchaser must identify the exact monetary amount to be applied against each credit card.
Purchasers whose payment is accompanied by a letter of credit, or who have on file an approved bid bond
(SF 150 or SF 151), may make payments by uncertified personal company checks, but only up to an
amount equal to the penal sum of their bond or the amount of their letter of credit.

(C) If, for any reason, a Purchaser's uncertified check is not honored for payment by the payee's bank
upon initial presentment for payment,  the Government may, after notifying the Purchaser, require the
Purchaser to make all future payments by cash, cashier's check, certified check, traveler's check, bank
draft, or money order.

(D) Successful bidders that wish to make payment via credit card for property awarded can do so by
providing language substantially as follows:

       I (WE) AUTHORIZE THE SCO TO OBTAIN PAYMENT BY CREDIT CARD FOR ANY
ITEMS I AM (WE ARE) AWARDED ON THIS SALE.
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                                            31-8018
Operational Articles

ARTICLE SJ: SCRAP WARRANTY.

The Purchaser agrees, represents, warrants and certifies that:

        (1)  This/these ship(s) will be completely scrapped by demilitarizing in compliance with the
        demilitarization requirements specified in the item description as applicable and by final
        dismantlement and mutilation of the hull and superstructure in such a manner that no considerable
        part of the ship is left intact or undisturbed to the extent that it can be reconstructed or readily
        identified as an existing portion of the original hull or superstructure.

        This will include the removal from the ship(s) (without replacement) of all hull, inner bottom,
        bulkhead, deck and deck house material, as well as all floors, longitudinals, webs, girders and
        other framing.  The term "hull" means the framework of a ship, including the keels, together
        with all decks, deck houses, tanks, the inside outside plating and all bulkhead, but exclusive of
        masts, yardarm, rigging, machinery, outfitting and equipment.

        (2)  The Purchaser further agrees that the Purchaser or his/her subcontractor will complete the
        required scrapping described above in the United States or its territories. The Purchaser further
        agrees that the ship will not be used or transferred by the Purchaser except for the purposes of
        scrapping as described above and approved in the technical plan.

        (3)  The Purchaser further agrees and certifies that all scrapping operations for lot 1 (items 1-6)
        will be completed  by the Purchaser  or his designee within three calendar years from the time of
        taking possession and removal from Government control of the first ship(s) removed in
        accordance with Article TC: Removal.

        (4)  The Purchaser further agrees and certifies that all scrapping operations for lot 2 (items 7-12)
        will be completed  by the Purchaser  or his designee within three calendar years from the time of
        taking possession and removal from Government control of the first ship(s) removed in
        accordance with Article TC: Removal.

        (5)  The Purchaser further agrees and certifies that all scrapping operations for item 13 will be
        completed by the Purchaser or his designee within three years from the time of taking possession
        and removal in accordance with Article TC: Removal.

        (6)  The Purchaser further agrees and certifies that in the event it bids on and is awarded more
        than one lot or item, the timeframe for completion of each lot or item will be as specified in
        subparagraphs (3), (4), and (5) of this article. The timeframe for completion of each lot and/or
        item awarded to an individual Purchaser, will run concurrently for each lot and/or item awarded.
        For example: If a  Purchaser is awarded  Lot 1 and Lot 2 and removes the first ships from Lot 1  on
        March 15, 1998, and removes the first ships from Lot 2 on April 15, 1998, the completion date for
        Lot 1 is March 15, 2001 and the completion date for Lot 2 is April 15, 2001.

        (7)  The Purchaser further agrees and certifies upon completion of the scrapping operation, the
        Purchaser will furnish to the SCO a certificate to the effect that all scrapping by this provision has
        been accomplished and all Federal,  State, and local laws and regulations have been complied with.
        The SCO or his successor may extend the above completion dates of scrapping operations when
        determined, in writing, that the delay in completion is due to causes beyond the control and
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                                            31-8018
        without the fault or negligence of the Purchaser, or when determined it is otherwise in the best
        interest of the Government.

ARTICLE SC:  CONTRACT PERFORMANCE.

Purchaser understands and agrees to submit a written request for contract modification to the SCO prior to
effecting any change from that Stated on its Statement of Intent, Technical Proposal, End-Use Certificate,
and/or Sale of Government Property-Item Bid Pages, Sealed Bid, whether occurring before or after the
release of the ship(s). The Purchaser further agrees not to effect such changes without first receiving the
written approval of the SCO. The Government reserves the right to visit the facility of the Purchaser or
subcontractor responsible for the actual scrapping of the ship during the performance of the contract. The
Gover.unent also reserves the right to meet with the Purchaser periodically to hold progress reviews for the
purpose of assessing the scrapping status and to monitor compliance with safety and environmental laws
and regulations. The Purchaser shall proceed diligently with performance of this  contract, pending final
resolution of any request for relief, claim, appeal, or action arising under or relating to the contract, and
comply with any decision of the SCO regarding same.

ARTICLE TC:  REMOVAL

(A) The Purchaser will make the initial removal of ships as follows:

        Lot 1:  Two ships within 60 calendar days after contract  award;
        Lot 2:  Two ships within 60 calendar days after contract  award; and
        Item 13:  Within 60 calendar days after contract award.

Subsequent  removals shall be in accordance with the purchasers  approved technical plan.

(B) The purchaser shall request authorization from the SCO to remove additional ships from each lot.
Prior to release of the next ship(s), the SCO shall evaluate the Purchaser's performance to determine
compliance with the terms and conditions of the contract and Federal, State and Local regulations. This
shall also include an evaluation of the cutting and scrapping schedule in the Purchaser's Approved
Technical Plan.  The last two ships in each lot shall not be released until the first two ships are 100 percent
complete.

(C) The Purchaser is required to provide five days written notice  to the Navy custodians prior to removal
of the ships.

Other Articles

ARTICLE SA:  TITLE.

Title to the scrap, parts and/or components available for removal  shall vest in the  Purchaser as and when
said property is physically removed from the ship or residue thereof.
ARTICLE SF: RISK OF LOSS. The Purchaser assumes sole responsibility for the security and protection
of the property purchased under the contract upon commencement of removal from the Government
facility by the Purchaser, its agent or authorized representative. The Purchaser further assumes
responsibility for the security of the property and of its equipment upon commencement of removal of the
ships. This responsibility is in addition to the coverage provided under Part 2, Condition 14, Sales By
Reference pamphlet, March 1994.
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                                           31-8018
 ARTICLE SM: GOVERNMENT RIGHT OF INSPECTION AND SURVEILLANCE.

 In addition to the Government's right of surveillance and inspection set out in the Sale by Reference, Part
 7, Article S; Part 6, Article G; the Purchaser is informed that the Government's or its authorized
 representative's right to observe all aspects of the work process may include inspection and surveillance up
 to 100 percent of the work process. The Government will also have the right to conduct a post-award
 conference with the awardee. The Purchaser is also informed that the Government's or its authorized
 representative's inspection and surveillance includes the right to verify the accuracy of the results of tests
 performed by the Purchaser as part of its obligation to comply with Federal, State, and local environmental
 laws and to verify that all environmental requirements are complied with.

 ARTICLE SR: PROHIBITIONS ON USE OF SHIP.

 The Purchaser's rights under this contract are limited to scrapping and sale of usable material.  Since title
 to the ship is retained by the Government until all material is completely removed/scrapped in accordance
 with Article SJ of this IFB, any other activities on board the ship are prohibited without prior approval by
 the SCO. These prohibited activities include, but are not limited to, memorial services, luncheons and
 tours.

 ARTICLE SU : TERMINATION FOR THE CONVENIENCE OF THE GOVERNMENT

 The SCO, by written notice, may terminate performance of work under this contract in whole or in part if
 the SCO determines that a termination is in the Government's best interest.  If this contract is terminated
 for the convenience of the Government, the Government shall be liable only for the purchase price paid
 under the contract, and reasonable costs incurred by the Purchaser for work performed under the contract
 prior to the effective date of termination, notwithstanding Part 2, Condition 15  of the Sale by Reference
 Pamphlet, March 1994.

  After receipt of a notice of termination for convenience, unless otherwise directed by the contracting
 officer, the Purchaser shall immediately proceed with the following obligations, regardless of any delay in
 determining potential amounts due under this termination:

   1. Stop work as specified in the notice.

  2. Place no further subcontracts or orders for supplies or services other than those required to
 complete any continued portion of the contract.

  3. Terminate all  subcontracts to the extent they relate to the work terminated.

  4. Complete performance of the work not terminated.

  5. Assign to the Government, as directed by the SCO, all right, title and interest of the Purchaser under
 the subcontracts terminated.

  6. With approval to the extent required by the SCO, settle all outstanding liabilities and termination
 settlement proposals arising from the termination of subcontracts.

  7. As directed by the SCO, transfer title and deliver to the Government any property, plans, or other
 information required to be furnished to the Government as if the contract had been completed.

  8. Take any action that may be necessary, or that the SCO may direct, for the protection and
preservation of the property related to this contract that  is in the possession of the Purchaser and in which
the Government has an interest.
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                                            31-8018
   If appropriate, the Purchaser shall submit its final settlement termination proposal to the SCO in the form
and with the certification prescribed by the Contracting Officer within 90 days of the effective date of
termination.

ARTICLE SV :  STOP WORK ORDER

   The SCO may, at any time, by written order to the Purchaser, require the Purchaser to stop all, or any
part, of the work called for by this contract for a period of up to 90 days after the order is delivered to the
Purchaser, and for any further period to which the parties may agree.  The order shall be specifically
identified as a stop-work order issued under this clause. Upon receipt of the order, the Purchaser shall
immediately comply with its terms and take all reasonable steps to minimize incurring costs allocable to
the work covered by the order during the period of work stoppage. Within a period of 90 days after a stop-
work order is delivered to the Purchaser, or within any extension of that period to which the parties shall
have agreed, the  SCO shall either-

   (1) Cancel the stop-work order; or

   (2) Terminate  the work covered by the order as provided by the Default in Performance or Termination
for Convenience clauses of this contract.

   If a stop-work order issued under this clause is canceled or the period of the order or any extension
thereof expires, the Purchaser shall resume work.  The SCO shall make an adjustment in the delivery
schedule and the contract shall be modified, in writing, accordingly, if—

   (1) The stop-work order results in an increase in the time required for the performance of any part of
this contract; and;

   (2) The Purchaser asserts its right to the adjustment within 30 days after the end of the period of work
stoppage.

ARTICLE SVV: CONTRACT AWARD.

Award of each lot and/or item will be made to the responsive, responsible bidder who has submitted an
acceptable technical proposal under step one of this rwo-step solicitation and that submits the highest price
bid.  The accepted technical proposal will be incorporated into, and made part of the resultant contract. No
change in the technical plan, including subcontractors identified therein, shall be made after award unless
the change is approved by the SCO. Prior to award of a contract, the SCO will determine whether the
bidder is a responsible prospective Purchaser. The Government also reserves the right to meet with the
contractor periodically to hold progress reviews for the purpose of assessing the scrapping status and to
monitor compliance with safety and environmental laws and regulations. This may include the
accomplishment  of an on-site pre-award survey to evaluate a prospective Purchasers capability to  perform
according to the terms and conditions of the proposed contract.

ARTICLE SX: PERFORMANCE BOND.

A. The Purchaser agrees to furnish to the SCO a Performance Bond on Standard Form 25 (Certified or
cashier's checks, bank drafts, irrevocable letter of credit, post office money orders, or currency may be
furnished with Standard Form 25 in lieu of a designated acceptable surety company) in the sum of $50,000
for items 1-12 and $200,000 for item 13 to cover the purchaser's obligation to complete the contract.
Performance bonds must be submitted with contract payment. For lot sales, a Performance Bond shall be
submitted for each ship  in each lot awarded. All Performance Bonds submitted to the Government on this
contract must be  issued by a firm with  at least an "A-" rating from A.M. Best or an equivalent rating
service.
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                                            31-8018
B. The SCO shall release the performance bond upon verification of the Purchaser's certification of
completion and upon the SCO's determination that all hazardous materials abated from the ship have been
properly disposed of and that any facility environmental issues have been satisfactorily resolved.

ARTICLE SY: CLASSIFIED MATERIAL

Any classified or secret material found by the Purchaser or its subcontractors) in the ships referred under
this contract must be immediately returned to Government control, as directed by the SCO, at the
Government's expense.

ARTICLE SZ: SPECIAL STANDARDS OF RESPONSIBILITY

The following special standards of responsibility will be assessed in addition to the general standards  in
determining responsibility of all prospective purchasers:

        A satisfactory history of compliance with Federal, State, and Local environmental 1s"vs and
regulations.

        A satisfactory history of compliance with Federal, State, and Local safety laws and regulations.

        These standards will also be applied to key personnel and subcontractors identified in the
prospective purchaser's approved technical proposal. Corrective actions taken in response to previous
violations will be taken into consideration in assessing a prospective purchaser's responsibility.
ARTICLE TB: SEVERABILITY

Any terms, conditions, or provisions of the contract resulting from this Invitation for Bids found to be
invalid, void, or illegal shall in no way effect impair or invalidate any other terms or provision herein and
such remaining terms and provisions shall remain in full force and effect.

ARTICLE TC: EQUAL OPPORTUNITY

        The following clause is applicable unless the contract is exempt under the rules, regulations, and
relevant orders of the Secretary of Labor (41 CFR, ch. 60) Exemptions include contracts and
subcontractors (i) not exceeding 510,000 and (ii) where no appreciable amount of work is to be done by the
contractor:

        During the performance of this contract, the contractor agrees as follows:

        (a)  The contractor will not discriminate against any employee or applicant for employment
            because of race, color, religion, sex, or national origin.  The contractor will take affirmative
            action to insure that applicants are employed, and that employees are treated during
            employment without regard to their race, color, religion, sex, or national origin. Such action
            shall include, but not be limited to the following:  Employment, upgrading, demotion, or
            transfer; recruitment or recruitment advertising; layoff or termination; rate of pay or other
            forms of compensation; and selection for training,  including apprenticeship. The contractor
            agrees to post in conspicuous places, available to employees and applicants for employment,
            notices to be provided by the Contracting Officer setting forth the provisions of this
            nondiscrimination clause.
        (b)  The contractor will, in all solicitations or advertisements for employees placed by or on
            behalf of the contractor, state that all qualified applicants will receive consideration for
            employment without regard race, color, religion, sex, or national origin.
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                                     31-8018
(c)  The contractor will send to each labor union or representative of workers with which he has a
    collective bargaining agreement or other contract or understanding, a notice, to be provided
    by the agency Contracting Officer, advising the labor union or workers' representative of the
    contractor's commitments under Section 202 of Executive Order No. 11246 of September 24,
    1965, and shall post copies of the notice in conspicuous places available to employees and
    applicants for employment.
(d)  The contractor will comply with all provisions of Executive Order No. 11246 of September
    24, 1965, and of the rules, regulations and relevant orders of the Secretary of Labor.
(e)  The contractor will furnish all information and reports required by Executive Order No.
    11246 of September 24, 1965, and by the rules, regulations and orders of the Secretary of
    Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the
    contracting agency and the Secretary of Labor for purposes of investigation to ascertain
    compliance with such rules, regulations, and orders.
(f)  In the event of the contractor's noncompliance with the nondiscrimination clauses of this
    contract or with any of such rules, regulations, or orders, this contract may be canceled,
    terminated or suspended, in whole or in part, and the contractor may be declared ineligible for
    further Government contracts in accordance with procedures authorized in Executive Order
    No. 11246 of September 24,  1965, and such other sanctions may be imposed and remedies
    invoked as provided in Executive Order No. 11246, of September 24, 1965, or by rule,
    regulation, or order of the Secretary of Labor or as otherwise provided by  law.
(g)  The contractor will include the provisions of paragraphs (a) through (g) in every subcontract
    or purchase order unless exempted by rules, regulations or orders of the Secretary of Labor
    issued pursuant to Section 204 of Executive Order No.  11246 of September 24, 1965, so that
    such provisions will be binding upon each subcontractor or vendor. The contractor will take
    such action with respect to any subcontract or purchase order as the contracting agency may
    direct as a means of enforcing such provisions,  including sanctions of noncompliance;
    provided, however, that in the event the contractor becomes involved in, or is threatened with,
    litigation with a subcontractor or vendor as a result of such direction by the contracting
    agency, the contractor may request the United States to enter into such litigation to protect the
    interests of the United States.
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  Remember...

     RFTPs are due by the official opening time.
     Please do not wait until the last minute!
Defense Logistics Agency
Defense Realization and Marketing Service
National Sales Office
74 Washington Ave N Ste 6
Battle Creek, MI 49017-3092
   Official Business
  Sale Number 31-8018
    First Class Mail
 Postage and Fees Paid
Defense Logistics Agency
    Permit No. G-53

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               APPENDIX E
SHIP SCRAPPING AND PCBS - BACKGROUND PAPER
      AND ADMINISTRATOR'S FACTSHEET

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       SHIP SCRAPPING AGREEMENTS AND PCBs - BACKGROUND PAPER

Background:

Under the current Toxic Substances Control Act (TSCA) regulations, export of PCBs at
concentrations of 50 ppm or greater for purposes of disposal is prohibited. In 1994, EPA
proposed to allow the export of PCBs for disposal (59 Fed Reg. 62788). It was EPA's intent,
with this rulemaking, to generally treat the transboundary movement of PCBs the same as the
transboundary movement of other hazardous waste which is controlled under the Resource
Conservation and Recovery Act (RCRA).

Pending the finalization of the export provisions of this rulemaking, EPA entered into interim
Agreements with the Navy and U.S. Maritime Administration (MARAD) to allow the export of
ships containing PCBs for scrapping, provided certain materials were removed from the vessels
prior to export. The Agreements require the removal of specified liquid PCBs and solid PCB
items that are readily removable. The Agreements also contain provisions requiring notice to the
importing country.

In response to concerns raised by the media about poor environmental and health and safety
conditions in overseas scrapping facilities, both Navy and MARAD agreed to suspend exporting
ships under these Agreements until after the Report of the Interagency Panel on Ship Scrapping
was issued and they met with EPA to discuss the Agreements.

Question: Now that the Report of the Interagency Panel has been issued, does EPA plan  to allow
the export of ships for scrapping under the current Agreements?

Answer:  Based on decisions made during the interagency review of both the domestic and
international ship scrapping industries, EPA is more confident that scrapping can be done
domestically in a way that is both environmentally safe and which protects the health and safety
of the workers in this industry.  For example. Navy. MARAD, EPA and OSHA have agreed  to
enter into a cooperative agreement under which the Defense Logistics Agency and MARAD will
notify EPA and OSHA when a contract has been let and the location of the proposed scrapping
operation. This will enable EPA to plan for and conduct timely inspections of ship scrapping
operations.  EPA and OSHA will be included in post/award/pre-performance conferences at
which environmental and occupational health and safety plans  are reviewed. EPA has agreed to
work with Defense Logistics Agency, MARAD and OSHA to develop a compliance manual that
will outline for ship scrappers the relevant environmental and occupational health and safety
requirements of their contracts and applicable laws and statutes.

We do recognize, however, that the number of ships currently needing to be scrapped exceeds the
capacity of the domestic industrial  base. Because of this limitation, we supported the decision of
the Panel to not foreclose the option of international scrapping. We also recognized that
improvements could be made in the export Agreements. One change agreed to was to expand the
notification requirement regarding  specific ships to include more detailed information about the
materials commonly found on these ships.  The notification provision will also be revised to

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provide for tacit agreement by the receiving country, if there is no objection within 30 days of
notification. A similar provision was included in an Agreement with MARAD in 1995. Under
that Agreement, the Government of India was notified of the potential export of two vessels
containing PCBs in paint for scrapping. Before the vessels were to be exported, India responded
that it had not been aware of the various PCB uses on vessels and declined the export, pending
further study of the issue.  In addition to proposed changes in notification, we have agreed that,
if the Agreements are reactivated, they should be reviewed annually to evaluate their use and to
determine whether they should remain  in effect. The first step will be for us to meet with both
the Navy and MARAD to discuss the Agreements, which was a commitment made during the
Panel review process.

Question:  Why don't the Agreements require the removal of hazardous materials other than
PCBs from  ships before they are exported for scrapping?

Answer: The Agreements address the export of PCBs because under the implementing
regulations  of TSCA, export of PCBs at concentrations of 50 ppm or greater for purposes of
disposal is prohibited.  With the exception of PCBs, neither TSCA nor RCRA prohibits the
export of asbestos or other hazardous materials and wastes, provided applicable regulations for
export, including prior notice or notice and consent are followed. EPA interprets its regulations
as not prohibiting the export of intact ships containing asbestos or other hazardous materials
when the vessels will continue to be used.  The Agency has not yet determined whether  partially
dismantled  ships containing hazardous material components are subject to the RCRA hazardous
waste export controls when the vessels are exported for scrapping.

Question:  What does EPA intend to do domestically to ensure that situations like the Coral Sea
do not occur again?

Answer:  Discussions on the Panel have been instructive in helping EPA to identify areas in
which we can improve our own oversight and enforcement to ensure that domestic scrapping is
done in compliance with the applicable environmental laws.  For example. Navy. MARAD, EPA
and OS HA  have agreed to enter into a cooperative agreement under which the Defense Logistics
Agency and MARAD will notify EPA and OSHA when a contract has been let and the location
of the proposed scrapping operation. This will enable EPA to plan for and conduct timely
inspections  of ship scrapping operations. EPA Region 6. along with EPA's National
Enforcement Investigations Center, will be visiting several ship scrapping operations in  the Gulf
Coast area to learn more about the logistics of scrapping. We also identified ways in which we
can work more closely with Navy. MARAD and OSHA to develop compliance protocols for
ship scrappers and to educate the ship scrapping industry about environmental and health and
safety requirements applicable to the industry.

Background: The Coral Sea situation:

EPA found  a pattern of improper asbestos removal and disposal and dumping of debris and
discharging oil into surrounding waters at the USS Coral Sea and the US Illusive ship scrapping
operation. The USS Coral Sea operation was under contract to Kerry Ellis and Seawitch

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Salvage. In its investigations of the USS Coral Sea ship scrapping operation, EPA discovered
asbestos containing material from samples taken from exposed pipes in scrapped areas of the
ships; there was no evidence that this material had been removed or handled in accordance with
the asbestos abatement requirements required under the Clean Air Act. Workers at the site also
claimed, and later testified at the subsequent criminal trial of Ellis, that they were told by Ellis
the pipe insulation contained no asbestos. Workers testified that Ellis directed them to remove
this pipe insulation, and that they generally were instructed to do so without proper and adequate
protective clothing. Workers were also illegally directed by Ellis to hose down the decks of the
Coral Sea with a fire hose, casing  tons of debris to be washed into the Patapsco River.' They
were also illegally directed by Ellis to use large quantities of Dawn dish washing detergent to
dissipate and conceal the oil sheen it left on the river.

Ellis and Seawitch Salvage were convicted of three counts of violating the Clean Air Act for
failing to file a notification of asbestos removal for tne USS Illusive and the illegal removal of
asbestos on the USS Illusive and the USS Coral Sea.  They were also convicted of two counts of
violating the Clean Water Act for dumping debris and discharging oil from the Coral Sea into the
waters of the United States; one count of violating the Rivers and Harbors Act for dumping
debris into waters of the United States; and one count of making a false statement to the United
States Government for lying about the quantity of asbestos removed from the Coral Sea by a
licensed asbestos contractor.  Mr.  Ellis was sentenced to 30 months imprisonment, fined
$50.000. and given three years probation. Seawitch Salvage was fined $50,000 and given three
years probation.
Question: What does the Navy and MARAD intend to do to ensure that situations like the Coral
Sea do not occur again?

Answer: The Navy and the Defense Logistics Agency (DLA), which acts as the Navy's disposal
agent, have significantly upgraded their procedures for awarding domestic ship scrapping
contracts. The Navy and DLA report that they now conduct numerous, sometimes daily
inspections of scrapping operations.  MARAD is upgrading its contracting procedures, but
claims it does not have the  resources or the expertise to conduct the intensive oversight program
that DOD is implementing.

Question: What are some of the specific panel recommendations in the report that EPA will be
involved in implementing to improve domestic scrapping?

Answer: In the area of leveraging regulatory oversight, the report recommends that EPA enter
into a Memoranda of Agreement (MOA) with the Occupational Safety and Health
Administration (OSHA), DLA, Navy and MARAD to set out responsibilities for coordination
and information sharing. The report suggests that EPA conduct comprehensive, multimedia,
environmental inspections of ship scrapping operations, which may include a teaming effort with
OSHA. The report also recommends that EPA coordinate with the other agencies in the
development of a compliance manual and other educational outreach mechanisms for educating
the ship scrapping industry in the regulations and expectations of the U.S. Government.

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The report recommends the development of PCB guidance for testing, removal and disposal of
non-liquid PCBs on vessels to be scrapped. The "removal" and "disposal" components are
addressed in the PCB disposal amendments that are to be promulgated in May, 1998. EPA
cannot begin developing the "testing" component without first analyzing data collected by DOD,
MARAD, and Coast Guard on non-liquid PCBs.

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Congressional Issues

•      After reviewing the Report of the Ship Scrapping Panel, Senator Mikulski expressed her
       concern that the Report did not recommend aggressive enough steps to correct the ship
       scrapping situation faced by the U.S. government.

•      Senator Mikulski has drafted legislation which would prohibit the sale of naval and
       MARAD vessels for scrapping abroad unless the Administrator of EPA certifies to the
       Secretary of the Navy or Transportation that the environmental standards of the importing
       country are similar to those of the United States and would establish a demonstration
       program for breaking up naval and MARAD vessels in U.S. shipyards.

•      In a public meeting held by the Ship Scrapping panel on March 5, 1998  in Washington,
       D.C., Senator Mikulski focussed on the importance of turning the large number of ships
       that needed to be scrapped into opportunity for American shipyards. She also noted the
       importance of not exporting our environmental problems.

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                         ADMINISTRATOR'S FACTSHEET

         SCRAPPING OF NAVY AND MARITIME ADMINISTRATION SHIPS
                                CONTAINING PCBs

PROGRAM/ISSUE: Because of the large number of U.S. government ships designated for
scrapping (currently over 180), and the uncertain capacity of the domestic ship scrapping market,
the Navy and U.S. Maritime Administration (MARAD), sought enforcement discretion
agreements with EPA that would allow them to export vessels for scrapping which contain
regulated quantities of PCBs. EPA entered into Agreements with both the Navy and MARAD
for overseas disposal of surplus vessels containing non-liquid PCBs.

In response to issues raised in the media about poor environmental and health and safety
conditions in overseas scrapping facilities, the Navy and MARAD agreed to temporarily suspend
efforts to export surplus ships to foreign countries for scrapping pending an inter agency review
of Navy and MARAD ship scrapping programs.  A report, including recommendations focussed
on both domestic and international ship scrapping, was released to Congress on April 20, 1998.
The Report recommended that export of vessels should not be foreclosed and made specific
recommendations for improvements in management and oversight of domestic scrapping and
improvements in the export agreements. [Senator Mikulski has expressed concerns that the
Report did not make strong enough recommendations to address the ship scrapping problem
faced by the U.S. government. See Congressional Issues section.]

Among the recommendations affecting EPA are the following:

PCB Guidance

EPA and OSHA, along with Defense Logistics Agency (DLA), Navy, MARAD and interested
parties, should develop guidance for testing, removal, and disposal of non-liquid PCBs in
accordance with applicable rules and regulations.

Regulatory Oversight

EPA. Navy. MARAD and OSHA should enter into a cooperative agreement that would: provide
notification to EPA when a ship scrapping contract is let and the location of the proposed
scrapping operation; provide for EPA participation in post-award/pre-performance conferences at:
which environmental plans are reviewed: provide  for sharing of compliance histories of
prospective bidders on request of DLA or MARAD.

EPA and OSHA were encouraged to conduct joint compliance inspections.

EPA was encouraged to conduct comprehensive, multimedia, environmental inspections of ship
scrapping operations.

EPA was encouraged to develop a compliance manual  that outlines for ship scrappers the

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relevant environmental requirements.

International Issues

EPA, Navy and MARAD agreed to revise the interim export Agreements to: expand notification
regarding specific ships to include detailed information about the materials commonly found on
these ships; revise the notification to include tacit agreement, if a country did not object to the
export within 30 days of notification that a ship might be exported. EPA also agreed that we
would review the export agreements annually to evaluate their use and determine whether they
should remain in force.

EPA also agreed to work with Navy, MARAD, State, Commerce, Labor and AID to evaluate
how meaningful technical assistance could be provided to interested importing countries,
including whether current statutory authorities and funding are adequate for this purpose.

BACKGROUND:

•     Under the current TSCA regulations, export of PCBs at concentrations of 50 ppm or
      greater for purposes of disposal is prohibited.

•     In 1994, EPA proposed a rule to allow the export of PCBs for disposal.  This rule would
      treat the transboundary movement of PCBs the same as the transboundary movement of
      other hazardous waste under RCRA.

•     The EPA Agreements with the Navy and MARAD were intended to be interim
      agreements until the final rule covering the export of ships containing PCBs for scrapping
      is published. The Agreements include provisions requiring the removal from the vessels
      of liquid PCBs and non-liquid PCBs that are "readily removable" prior to export. They
      also require notification to  importing countries, prior to export, regarding the vessel
      exporting program followed by notification of vessel-specific exports.

•     The Agreements do not address the export of asbestos, lead, chromates and other toxins
      which may be  present on these obsolete vessels. EPA interprets its regulations as not
      prohibiting the export for scrapping of asbestos. Export of lead is not prohibited,
      although waste materials containing lead may be subject to RCRA. Sodium chromate,
      which performs a ballast function, is not considered to be a waste at the  time of export.
      Any materials  which is not performing a function and which falls within RCRA's
      definition of "hazardous wastes" would potentially be subject to hazardous waste export
      controls.

Major Activities

•     Work with Navy, MARAD, and OSHA to implement recommendations of Interagency
      Ship Scrapping Review Panel as appropriate.

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           APPENDIX F
NOVEMBER 30,1995 LETTER TO MARAD

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             UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                        WASHINGTON, D.C. 20460
                                                           ^ SECTION 6EH-_Af"

                                                           ^CEMENT AND1"
                                                      COMPLIANCE ASSURANCE
ENFORCEMENT AND^'^0' 'A
 November 30,  1995


 Joan M.  Bondareff
 Chief Counsel
 Maritime Administration
 Room 7232,  MAR-220
 400 Seventh Street, S.W.
 Washington,  D.C. 20590

 Dear Ms. Bondareff:

      This letter finalizes EPA's May  5,  1995  interim response
 provided to Ms. Erin Anderson, Esq. and  supplements the May 16,,
 1995 EPA letter which responded to your  May 9,  1995 request for
 clarification.

      In general, EPA has determined that MARAD has adequately
 addressed EPA's main concerns  in its  counter-proposal dated April
.28, 1995.  Those concerns include  (1)  financial assurance in the
 event that the purchaser or  scrapper  is  unwilling or unable to
 remove and properly dispose  of PCB waste from the vessels;  (2)
 removal and disposal of PCB  waste  in  accordance with 40 CFR
 Section 761 prior to smelting  operations or export of the ship
 carcass; (3)  final inspection  of the  vessel in the event that it
 is exported for scrap recycling  (disposal)  and (4) EPA
 notification.

      This letter applies only  to the  two vessels, the Northwind
 and the Santa Isabel listed  in your Attachment A  (Enclosure 1),
 which are subject to the Invitation for  Bid (IFB), EXC-8633 dated
 January 13, 1995.  It is EPA's understanding that these vessels
 are to have the PCBs removed within the  EPA Regions of 3, 4, or
 6. As such, the terms and conditions  included in this letter have
 been reviewed by these  EPA offices and are only applicable  to
 locations within these  three regions.  EPA and MARAD will
 negotiate a more comprehensive compliance agreement for future
 distribution of auctioned vessels.

 Financial Assurance

      EPA has determined that,  for  the purpose of  the referenced
 transfers, the  amount of the $75,000  performance  bond from  the
 purchaser, set  aside for PCB cleanup, is acceptable financial
 assurance when  combined with MARAD's  self-insurance and status  as
          R*cyel»d/Recyclabla • Printed with Vegetable Oil Based Inks on 100% Recycled Paper (40% Postconsumer)

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a generator.  Please provide the EPA with a copy of the
performance bond.

     EPA has determined that MARAD is a generator of the PCS
waste on its surplus vessels.   This potential liability that
MARAD retains as a generator,  coupled With self insurance (and
the performance bond)  provides adequate assurance that the
ultimate disposition of PCBs and PCB items in concentrations of
50 ppm or greater on board the two (2)  vessels listed in your
Attachment A will be in accordance with the regulations at 40 CFR
761.

     While MARAD retains generator liability, EPA is willing to
accept MARAD's proposal that it and the scrapper/PCB removal
performer share co-generator status for any PCB waste which
results from ship scrapping operations.  Whether or not EPA
accepts this co-generator arrangement for future sales is yet to
be determined.  The October 28, 1993 letter from Tony Baney  (EPA)
to lona Evans  (Navy) is enclosed (Enclosure 2) and EPA has
determined that similar co-generator status will be applicable to
the sale of the two vessels noted in Attachment A of MARAD's
April 28, 1995 letter.  MARAD designated co-generators must have
EPA TSCA generator ID numbers.

Designation of the Shipyard as a Temporary Storage Facility

     EPA can not agree to designate either the ship or the
shipyard as a PCB temporary storage facility under
40 CFR 761.65  (c).

     The discussion concerning storage requirements from EPA's
response to your May 9, 1995 fax is restated here:  As a matter
of enforcement discretion and not regulatory interpretation, EPA
has determined that a storage-for-disposal clock should begin to
run from the time that the PCBs and PCB items are removed from
their existing use and location on the vessel.  The removal  of
the items  (from their present use and location on the vessel)
would trigger  a one year storage for disposal time period. By the
end of that year, these items must have been disposed of.  For
example, if the scrapper/PCB remover chose to remove and then
store PCB  items for almost one year, by the  365th day after
removal, the  item must be disposed of in a TSCA landfill or
incinerated in accordance with the PCB regulations.

     As  a  matter of enforcement discretion and not regulatory
interpretation, non-liquid PCBs and PCB items which are removed
from the vessel must be stored in compliance with 40 CFR 761.65
 (b)(1)(i)  which  is  the requirement that a storage facility shall
have an  adequate roof and walls to prevent rain water from
reaching the  stored PCBs and PCB Items.  The  other provisions of
761.65  (b)  do  not have to be adhered to for  non-liquid PCBs
removed  from  these  two vessels.

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     Non-liquid PCS items which are removed from their present
location on the vessel may be stored on the. vessel itself in
covered waterproof containers.   If liquid PCB waste is to be
stored, it must be stored on or off the vessel in conformity with
40 CFR 761.65 (b)  (except for the flood plain requirement).
Liquid waste may not be stored for longer than a 30 day period if
it is stored in a flood plain.   The goal of these requirements is
that PCBs and PCB Items be handled and stored in a manner that
prevents migration or release of the PCBs into the environment..

Removal of PCBs from the Vessel

     PCBs at concentrations equal to or greater than 50 ppm are
regulated for disposal.  Consequently, any PCB material on the
vessel at 50 ppm or greater must, .be removed and disposed of in .
accordance with 40 CFR 761 prior to export of the-vessel for
demolition/scrap.   Even if the vessel is not exported, this PCB
material must be disposed of in accordance with the regulations.

     EPA's April 14, 1995 draft proposal listed those items on
old vessels which are presumed to contain PCBs.  They are:

-  cable insulation
   rubber gaskets
   felt gaskets
   thermal insulation material
      fiberglass
   -  felt
   -  foam
      cork
   transformers
   capacitors
   electronic equipment with capacitors and transformers inside
   adhesives
   tapes
-  oil
   - electrical equipment and motors
   - anchor windlasses
   - hydraulic systems
- surface contamination of machinery and other solid surfaces
  (unknown sources presumably from historic practices)
- oil-based paint1
     1   Oil-based paint  will  be treated the same as  other suspect
materials, i.e.  it will be presumed to be contaminated with PCBs
at concentrations equal to or greater than 50 ppm (particularly
paint  in cans) unless sampling and testing results show  a lesser
concentration, and shall be removed and disposed of in accordance
with 40 C.F.R. Part 761 with the following exceptions:

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- caulking
- rubber isolation mounts
- foundation mounts
- pipe hangers
- light ballasts
- any plasticizers

This list is supplemented by the enclosed  Department of Justice
letter (Enclosure 3)  which contains a  similar list.   Please be
advised that applicability of the PCS  regulations is not
necessarily restricted to items on the list.   All PCBs at
concentrations of 50 ppm or greater are regulated for disposal.
     Domestic - Paint which is contaminated with PCBs is not
     required to be removed from any painted surface from either
     ship which is to be smelted in the United States,  provided
     that it will be smelted in a device which meets the
     definition of "industrial furnace" as defined in 40 C.F.R.
     260.10.

     International - Paint which is contaminated with PCBs is not
     required to be removed from any painted surface from either
     ship which is to be sent to a foreign country for smelting,
     provided that the following conditions are observed:

     (1)  At least 90 days prior to export of the ships, notice
     is given by EPA to the importing country of the intended
     export.  This notification will state (a) that the ships in
     question may contain PCBs in concentrations of 50 ppm or
     greater, (b) the conditions for export contained in this
     letter, and  (c) that the export will be authorized if the
     importing country consents in writing to the export, or does
     not object in writing to the export within 90 days of the
     date of the notification.  Export of the ships may not
     proceed until  (i) written consent of the importing country
     is received by EPA, or (ii) 90 days have elapsed from the
     date of notification of the export and the importing country
     has not objected.

     (2)  The contract between the exporter and the
     importer/disposer specifies that the material will be
     handled in an  environmentally sound manner;

     (3)  The exporter or MARAD or its cogenerators shall take
     back the materials or make alternative arrangements to
     ensure their environmentally sound management if: they are
     sent without notice and opportunity to object as specified
     above; consent was obtained through falsification,  fraud  or
     misrepresentation; or the materials cannot be handled in
     accordance with  the terms of the  contract.

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The lists are supplied to provide guidance concerning those items
that EPA presumes to be contaminated with PCBs at regulated
levels.

      Purchasers/PCB removers may approach PCS remediation in one
of the following ways:

     (1)   Purchasers/PCB removers may assume that the items on
this list are contaminated with regulated PCBs which must be
removed and disposed of in accordance with the PCB regulations;
or
     (2)   Purchasers/PCB removers may undertake sampling analysis
to disprove the presumption that the suspect items contain
regulated PCBs; or

     (3)   Purchasers/PCB removers may elect to remove all of one
item type (ie: felt gaskets) and elect to conduct sampling
analysis on another item type (ie: electrical1 cables) .

     To assist the purchaser/PCB removers who desire to sample
the suspect material, EPA has developed a guidance which
addresses PCBs in ship disposal operations.  This guidance
(Enclosure 4) provides the national policy on sampling and/or
removal expected from ship disposal (including scrapping)
operations.  The PCB removers/purchasers for the Northwind and
the Santa Isabel shall utilize the guidance in their ship
scrapping activities should they desire to sample items presumed
to contain regulated PCBs.  The guidance was developed as a
generic guide. In any instance where the terms and conditions of
this letter may conflict with the guidance, the provisions in
this letter shall be controlling.  Any questions concerning
implementation of the guidance should be directed to the
appropriate EPA office.

Certification of PCB Removal

     EPA requires a certification from the President or CEO of
the PCB Remover/Scrapper that the successful removal and proper
disposal of all PCBs and PCB Items with a concentration of 50 ppm
or greater on board this vessel(s) has been accomplished.  The
certification shall include statements that:

     - all known PCB  liquids at concentrations of 50 ppm or
     greater have been removed;
     - any liquids which have not been removed which could
     contain PCBs based on  their use have been analyzed for PCBs
     and found to be  less than 50 ppm and are not the result of
     dilution following the sale of the ship;
     - all items listed in  each category have been removed and
     disposed of in accordance with 40 CFR subpart D, or
     representative sampling conducted in accordance with
     Enclosure 4 indicated  that the items did not have to be

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     removed because PCB levels were below 50 ppm.
     - I certify under penalty of the law that this  document and
     all attachments were prepared under my direction or
     supervision in accordance with a system designed to assure
     that qualified personnel properly gather and evaluate
     information.  Based upon my inquiry of the person or persons
     directly responsible for gathering information,  the
     information is, to the best of my knowledge and belief,
     true,  accurate, and complete.   I am aware that  there are
     significant penalties for falsifying information,  including
     the possibility for fines and imprisonment for  knowing
     violations. Dated:	Signature:	 Title:	

     Complete copies of all sampling results and manifests signed
by the first .transporter for PCB waste transported for disposal
shall be provided to EPA as an attachment to the certification.

     In the event that any portion of the vessel will be exported
for disposal, this certification must be received by the
appropriate EPA regional contact at least 15 calendar days prior
to export of the vessel(s). In addition, at least 30 calendar
days prior to export, the scrapper/PCB remover shall transmit to
the appropriate EPA regional contact the sampling and analysis
results for all samples taken to verify the concentration of PCBs
and PCB Items.

     The minimum information required for each sample listing is:
a unique sample identification number; the location (including
deck) where the sample was taken; the kind of material or item
sampled and the amount of sample taken; the distance from the bow
of the ship to the sample location; the date and the time that
the sample was collected; the name and phone number of the sample
collector; the PCB concentration in the sample; the limit of
quantitation for the chemical analysis;- the extraction method
used including the identity of any solvents; and the EPA-approved
analytical method used for chemical analysis.  In addition, the
chain of custody form(s) and at least 10% of the chromatograms
shall be submitted to EPA.  Of course, the EPA Regional Office
where the PCB sampling/removal occurs, can and may request
additional information as deemed necessary.

     At least 30 calendar days prior to export, the purchaser/PCB
remover shall transmit to the appropriate EPA regional contact
complete copies  of all manifests signed by the first transporter
for PCB waste transported for disposal.

Notification Provided to EPA by MARAD or Their Co-Generators

     All notification requirements are  to be provided to  the EPA
Regional PCB Contacts  in the regions where the PCB removal will
take place and  a copy  shall also be  submitted to EPA HQ.  The
points  of contact  are:

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USEPA Region 6
Lou Roberts (6EN-AT)
Toxics Section
1445 Ross Avenue, Suite 1200
Dallas, TX 75202-2733
phone:  214-665-7579   fax:   214-665-7446

USEPA Region 3
Ed Cohen
841 Chestnut Building
Philadelphia, PA  19107
phone: 215-597-7668  fax:  215-597-3156

USEPA Region 4
Stuart Perry            ...
345 Courtland Street, N.E.
Atlanta, GA  30365
phone: 404-347-3222  (x6907)  fax:404-347-1681

USEPA HQ
Diane Lynne
Federal Facilities Enforcement Office (2261)
401 M Street, SW
Washington, D.C. 20460
phone: 202-260-9755  fax:  202-260-9437

     MARAD and/or its co-generators must perform all generator
duties listed in the PCB regulations, including the notification
and manifesting requirements at 40 CFR 761.   In addition, MARAD
and/or its co-generators shall transmit to EPA a floor plan map
of each deck of both vessels, a plan with respect to the removal
and/or a complete sampling,  and characterization for PCBs, a
schedule for PCB removal,  notification of where the PCB removal
will take place and vhen the vessel will be transferred from
MARAD.  MARAD shall provide EPA with a copy of the contract
between both MARAD and the purchaser and between the purchaser
and the scrapper/PCB remover (if available). MARAD shall provide
EPA with a contact person,  phone and fax number for each business
entity listed on Attachment A as well as the MARAD point of
contact for these PCB removal operations.  This information must
be provided to EPA as soon as possible after acceptance of the
bid, but no later than two weeks prior to delivery of the vessel
to the PCB removal location.

     EPA acknowledges that via "Article 14,  Environmental
Pollution" of the proforma Contract contained in the Invitation
for Bid package, MARAD has notified the bidders of the potential
locations of PCBs on board the vessels and of the applicability
of the federal PCB regulations at 40 C.F.R.  Part 761.

     MARAD shall notify the EPA Regional office in writing if
MARAD  becomes aware  of any violations of 40 C.F.R. Part 761.

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                                8

     Either MARAD or their co-generators shall provide
notification to the dock owner that  PCB  removal/storage
activities will be conducted at that site.  A copy of this
notification shall be sent to EPA.

Inspection of PCB Removal

     In the event that the purchaser proposes to export the hulk
of the vessel,  MARAD, or its contract inspector, will conduct a
final audit inspection of the vessel after  the purchaser has
represented to MARAD that all PCBs equal to or greater than 50 .
ppm have been removed and disposed of properly.  The final audit
inspection shall include a visual inspection of the areas
suspected to contain PCBs to ensure  that those items have been
removed.  The audit will also include a  visual inspection of all
areas separate from the vessel where PCB waste has been stored
prior to transportation off-site for disposal, if any. In order
to conduct a visual inspection acceptable to EPA,'areas where
PCBs are normally expected to be found (such as behind walls and
above ceiling tiles)  shall be visually accessible for
inspections.  If the visual inspection reveals potential PCB
objects on the vessel or in storage  areas,  MARAD will confirm by
review of the test/sampling data, that the  remaining items
contain PCBs in concentrations of less than 50 ppm. In the event
that the review of the test/sampling data indicates that the
remaining potential PCB objects either contain PCBs at
concentrations of 50 ppm or greater  or were not adequately
tested, the purchaser will be required to either remove or test
the remaining potential PCB objects.  Following the removal or
testing of these remaining potential PCB objects, MARAD shall
conduct another visual inspection of the vessel.  A written audit
report which outlines the results of the audit(s) shall be
provided to the EPA regional office  at least 7 calendar days
prior to the export of the vessel.

Asbestos and Lead-related Issues

     If the two vessels contain asbestos and/or lead and if such
asbestos and/or lead will be disposed of and/or recycled during
the anticipated disposal/recycling  operations  in the importing
country, then the conditions identified  in the paragraphs
numbered 1-3 under "International"  issues in footnote 1, above,
must also be applied to the asbestos and lead  on the vessel.
These notification and opportunity  to object procedures may be
handled concurrently for PCBs, asbestos  and lead.

     Within the United States jurisdiction, asbestos, lead and
any other regulated substances  (except for PCBs to the extent
that they are specifically addressed in this letter) shall be
handled in accordance with all the  applicable  U.S. laws and
regulations including, if appropriate, the NESHAP reqirements.

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     Within the U.S., the Asbestos National Emission Standard  for
Hazardous Air Pollutants  (NESHAP) applies to regulated facilities
undergoing a demolition or renovation where asbestos containing
material will be disturbed or damaged.  A ship is considered to
be a regulated facility under the definition of a facility  (40
CFR Part 61 subpart M) .  The scrapping of a vessel within the
United States, is considered to be a demolition which at the very
least requires a notification to U.S. EPA or its delegated  agent
under Section 40 CFR  61.145.

Enforceability

     By awarding contracts for the two vessels discussed in this
letter, the Northwind and the Santa Isabel, MARAD agrees to the
terms and conditions  contained in this letter of enforcement
discretion.  This letter  is not and shall not be construed  to  be
a vehicle to relieve  MARAD and its co-generators of any  legal  or
regulatory obligations including obligations under any
environmental laws or regulations except as expressly provided
for herein.  In the event that MARAD fails to comply with any  of
its obligations under this agreement and the parties are unable.
to resolve the issue  informally, EPA reserves any rights granted
to it under applicable law to seek administrative or judicial
relief against MARAD.  Where this letter requires a specific
action, certification or  notification from the
purchaser/scrapper/PCB remover, MARAD shall notify the purchaser
,in writing of such requirements through either the proforma
Contract contained in the Invitation for Bid package, the
conditional award letter, the contract for sale, or any  other
legally enforceable mechanism.

     Please call Diane Lynne of my staff at 202-260-9755  if you
require additional clarification.
                                      Breen
                             Direct6r
                             Federal  Facilities Enforcement Office

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                                10

Four Enclosures:

(1)   MARAD Attachment "A", NORTHWIND and SANTA ISABEL particulars
     (1 page);


(2)   October 28, 1993 letter from Tony Baney (EPA) to lona Evans
     (NAVSEA) re: co-generator status (2 pages);

(3)   April 21, 1995 DOJ letter re:  Guidance for Evaluation and
     Cleanup of PCBs on Board the USS Cabot/Dedalo (3 pages);

(4)   EPA Guidance on ship scrapping; "Sampling Ships for PCBs
     Regulated for Disposal, November 30, 1995 (21 pages).


cc:   Mike Stahl  (OECA)
     Jesse Baskerville (OECA-TEPD)
     John Smith  (OPPTS)
     Roland Dubois (OGC-Toxics)
     Joe Freedman (OGC-International)
     Tom Sullivan (OCLA)
     Lou Roberts (EPA Region 6)
     Ed Cohen (EPA Region 3)
     Stuart Perry (EPA Region 4)
     Trigg Talley (State)

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                        FROM  MflRITIME flDMIN.


                                            -1
                                                                TO
                                                   92609437  P.02
                                                                                  ATTACW!EHT "A*
                                   flARAO VESSELS  P80POSEP TD BE SOLO
Vessel Na*»
                                 SANTA  ISABEL
Present Location
          Weight
Fort Eustis, VA


3,495 long tons
                                 Fort  Eustis, VA


                                 9,948 long  tons
Proposed Purchaser
Transfer* tttrlne.  Inc.
641 S. Port ftoad
Brownsville, n 78S23
                                 R1g Ventures,Inc.
                                 6665 E.  ICth Street
                                 Brownsville, TX  7BS20
Purchase Price


PCS fteaoval Per furaer
(241,900
           narine
(Addrcu caw is •bove)
                                 EPA ID No.  TXD988042131
                                 U97,900
                                 Baltimore Resources,  Inc.
                                 1&40 rrankfurst  Avenue
                                 Baltimore, -no 21226
                                 EPA ID No. RDC001096841
Storage/Disposal Site
Rollins Env1ron«ent«l  Serviee*
2007 Battleground Road
D««r Park, n  7753
EPA ID Ho. 7X0055141378
 and/or
U.S. Ecology
P.O. Box 576	
Beattr, HV  89003
                                 CUH Chedeal Services',  Inc.
                                 1550 Balaer ftoad
                                 Model City, KY  1410T
                                 £PA ID NO.  flTWX9836679
Transporter
Hud City Environmental,  Inc.
Houston, Texas

EPA 10 No. TX0988084398
                                          Waste
                                 4400 River Road
                                 Tonawanda, NT  U1SO
                                 EPA ID No. IL9099202681
                                 Pen American Labs
                                 5337 East 14th Street
                                 Brownsville, n 78521
                                 Environmental Reference Laboratory
                                 1901 Sulphur Soring Road
                                 Baltimore, BD 31227
                                 Halliburton NUS Corp. via
                                 subcontractor nsCL Inc.
                                 1452 Dwke Street
                                 Alexandria, VA  22314-34S8
                                 Halliburton NUS Corp via
                                 subcontractor nsCL Inc
                                 14S2 Duke Street
                                 Alexandria, VA  22314-3458
 PCS Boowal Location
 Brownsville, TX
                                 Vllaington, NC or
                                 Brownsville, TX

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                                          ^ r\ c_lo S»u re_

              UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                         WASHINGTON, D.C. 20460
                                2 8 1993
                                                        OFFICE OP
                                                     PREVENTION. PESTCIOES
                                                     AND TOXC SUBSTANCES
lona E. Evans
Department of the Navy
Naval Sea Systems Command
2531 Jefferson Davis Highway
Arlington, VA  22242-5160

Dear Ms. Evans:

     I am responding to your September 2, 1993  letter to Mr.  Tad
McCall, Acting Deputy Assistant Administrator for  Federal
Facilities Enforcement. In that letter, you requested that EPA's
Toxics Enforcement Committee evaluate the Navy's request to allow
its contractors to perform the generator duties associated with
the disposal of PCB waste resulting from the scrapping and
recycling of decommissioned Naval vessels.  Although the Toxics
Enforcement Committee did not review your request  during their
monthly meeting, representatives from the Office of  Pollution
Prevention, and Toxics,  (OPPTS), the Office of  Compliance
Monitoring (OCM), the Toxics Litigation Division  (TLD), the
Office of General Counsel  (OGC), and the Office of Federal
Facilities Enforcement  (OFFE) have discussed your  request and
have reached a decision concerning the generator  issue.

     Based on the facts as presented in your September 2, 1993
letter, EPA has decided that it. is appropriate  to  view the Navy
and  its contractors as co-generators of any PCB waste which
results from ship scrapping operations.  Accordingly, EPA is now
proposing incorporation  of the  following provision addressing
scrapping in the compliance Agreement:

     On behalf of the Navy, the Defense Reutilization Marketing
     Service  ("DRMS") sells some excess USN titled vessels to
     private industry  for the  purpose  of disposal of the vessels
     by scrapping.  The  Navy shall provide  full notice through
     DRMS to bidders  on  contracts for  the scrapping of those
     vessels,  of the Navy's knowledge  of the  existence of PCB
      items and potential PCB  items on  board those vessels and
      shall require  such transferees  to acknowledge their duty to
      comply with the  requirements of TSCA and 40 C.F.R. Part 761.
      The  contract  shall  provide that the Navy and the transferee
     will perform  all  required duties,  including those of the
      generator of  PCB waste,  for  any PCB  items that are removed
      from the  vessel.   The contract  shall specify which duties
      such as manifesting, record-keeping, annual reports, etc...,
      will be  performed by the Navy  and/or the transferee as co-
      generators.

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     EPA's decision to treat the Navy as a co-generator of PCB
waste, rather than the sole generator,  obviates the need for ship
scrappers who are co-generators from applying for and receiving
approvals as commercial storers.  The draft language does not
eliminate any other regulatory requirements such as the current
need to obtain disposal permits (40 CFR 761.60) for the .chopping,
stripping or otherwise processing of unauthorized wire cabling
containing PCBs.

     You have requested that "the Navy be permitted to proceed
with its ship scrapping program with the contractor acting as and
performing all generator duties." The new draft provision offered
by EPA allows the Navy and its scrappers to determine
contractually which party will perform the various generator-
specific duties, while acknowledging the generator status of
each.  In the interests of expediting Navy surface vessel
scrapping activities, EPA is amenable to the immediate
application of the proposed paragraph pending execution of a	
final compliance agreement.  The terms and conditions set forth
in the executed compliance agreement will, of course, supersede
the draft language offered in this letter.

     If you have any questions concerning this letter, please
call me at  (202) 260-3933.  Questions concerning the compliance
agreement should be directed to Diane Lynne at (202) 260-9755.

                                   Sincerely,
                                   Tony Baney, Chief
                                   Operations Branch

 cc:   Barry Breen, OFFE
      Mike Walker, OE
      Mike Stahl, OCM
      Mike Wood, OCM
      Pat Roberts, OGC
      PCB Coordinators, Regions I-X
      PCB Branch Chiefs, Regions I-X
      Federal  Facility Coordinators, Regions I-X

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         17:61
             ;DOJ.
                                                               Urrt     1^)001/00

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                                        US Department of Justice
                                        .      '              ;:-.-.    y.-,  •:
                                        Environment and Natural Resources Division.
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     BY
                                                  _
                                                  21, 1895
                                     i*
                                     i •
                                                                     ''• Ir" «
    -_,_. D:	.
 . Leake-. & /Anderson--.
 Attorneys -a.t:ijaw
 ;17pO;Energy/ceiitre-"'•••• '•"'•'.•  •. f   '.
 ;1100'. Poydras; street  .".  "•    • j   •
 New-Orleans, -.Louisiana ,70163-11701
     ". .'" !•'  ":•'•:•''..'• | .. ••'• ••-•'!•'  -~j  ,•••••                • ' "       ' • -L il
      R«: .Guidahce  for Evaluation and  ciearmr, „* e~i   v,   V -'JM'
!>: '    ." •• BiPhpnvVf. fPPBn)  M ^Lrg^^P^^^^y^lorina^
•'-•-'  •	  - .-.]:;
                                                                           .
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                                                                      , .
                                                                      «is
                                                                      '
 •. ..   ••- • •  .•• .-.J-'.  .' •'."•   •  ••. •'
 ;jDear Mr-  Pagan'?.'  -.•:•.••••'•

 rl?  •,-":: •.;••  ••|i: .   • ••'•  :.':>'•] .'    "' '   •     '     .-••-•••
       This  letter is intended to provide guidance for the. USS,
  Cabot/Dedalo Maseum Foundationj, Inc.  ("Foundation") to    '.  [•"
  [successfully remove and  properly dispose  of  all PCBs and>'PCS|  ~..
  Items  at concentrations  of SO .ppm. or greater from the  ex-USSj:. ^  '.
  Cabot/Oedalo ("vessel")  in accordance with the PCS regulations?at
  40  C.F.R.  Part 761, and  Judge McNamara's  March 30,  199S  'ordeal'
  •• ..  ..  :. ..  ^..-ii;.,;   .-:   •-,  •/  ;.••    ;.- •.                 •  "...in^l  •• •
       As you Jcnow, EPA very is jconc'erned about the documented -r 1
  spill of oil on the floor  of  aj Moorincf/Windlass Rogm Wlierfi'-d l'.^-'
 Isample indicated a- PCB content! of 275 parts  per million. (ppm)|v5f  .'
  This ep'ill should be properly addressed in accordance'with 40'  •;'
  c.'P.R.  Part  761-which includes identifying the source*   EPA is |''. '
..also concerned T.about the other oil leaks that were  noted-by t&a'
^EPA'Inspectors|on..December 14  Sand; IS,. 1994.   These  leaks' andlall .-
!  other spi'lls-involving PCBs with.:a concentration  of so -ppn '6*'1"
jj greater must  also-be • properly  remediated in accordance with 4*0^'
;lc.F.R.  Part 761. which;  .again,  includes identifying  the source/'
:- -•     ••'.'•    ••'•!.•  • ••'••:-   .     -i-    • •    \            ''    • •'' -...- W-. •
••.'. ..EPA presumes  that-the following list of  items  contain PQBs '"••'
;:£at.concentrations  of so..ppm or|'greater,'  This  list  includes thoW
;; items that .have been found to pontain  PCBs on board naval    -r'^
-. vessels:  .•' "-  'I  '•  • .••••''  •. . . i •..              '   •      .  • •••
!  '.'-..-   ' •'•'  .•''.':{  '    •..!..'-• ''  '
  ..  '•.-••  .•::»i«etrical'-cabi;a-" ,:
   . -. ';•.-,-. •.'••.'Rubber ..gaskets-. •' '•'• •
     - -••  - • felt;:igaskets  •  •' :''. '  j ..
     •'••'. .thermal insulation material
    ., • .-•_• -.   • :  • ;;;-:•  . i.  • .      •   ~ •

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 it.
•if
                    [fiberglass
                    lira-it. •  -...
•j
.1
- ••.Vi-cork-.... v ,".'
transformers /   .
..capacitors^-
electronic  equipment
    'ivith capacitor*
voltage regulators
ewitlcheo  .  ' •.  • • '
reclpsers  ' '...  •
bushings •' '      : •'
.ei'ecjtromagriets ..'  .
adhesives-   ."•••'.'
•tap*-- ;..   -•' ••,:
                                                                    • i"'
                                     and transformers Inside
                                                                     _
                                                                1
                                                                     •a
     i •
    I::!
                i electrical equipment and motors  .
                J anchor windlasses   .    .-
           > •  i hydraulic.systems .
           >.r-   1 laaks. and spiles
           ' surf iace •contamination of .machinery and
              ' .M other solid surfaces
           .'-oil-biased.,paint ••   •   . "•   .-•
           .'.caulking.  '   - .-• '••   •''".'
            rubber .isolation.mounts
           •' foundation1 mounts
            pipe hangers .
            Iight::ballast8  .
       -  .  -anyplasticizers. ...
          •'-.•;''   -..-.••    •• j   '   .    .       ••     •
       The Foundation may elect:to presume, as EPA does,  that
  the items listed above contain PCBs with a concentration of $0?
  ppffl 6i? §lfeatetif and remove and dispose of these items in
  accordance with 40 C.P.R. Part 761.  -Or, the Foundation,iaay elect
  to conduct a comprehensive Environmental Assessment ("EAfl) on
  board the vessel for PCBs and'then remove those actual items
  found to contain FCBs with' a concentration of  50 ppm  of grea'ieir.
                                                                    1
         .  If "the 'Foundation chooses'to .conduct a comprehensive-JSl for
      PCBs (which must  include  the many  areas of the vessel where dobre
      and hatches have  been bolted shut)  instead of presuming that! the
      above listed  items  contain  PCBs with a concentration of 50  ppnji or :
      greater, the  sampling/must  beiconducted in accordance with  EPJit"1- '
      published guidance.  Records of all sampling and analysis' must'ibe
      retained for  EPA  inspection.1
       1  EPA requires that electrical cable samples be separated
  their individual components (i-.e.f paint,  paper, plastic^
  around•copper vire,  copper wire casing, outer  covering  (casi
  gumny material;, plastic wrap,  etc.)  and be .analyzed separate!
                                                                     into
                                                                 material

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                                                         CTA urrc.
. 4-^4-9S
              ;DOJ.
                                                                  :g
       •  EPA is wijllirig. to review!a complete sampling,-
    characterizatibh, and' removal jplan (including an identification
    of specific extraction and analytical methods to be used  in all
    sampling) prior to commencement of any activity.             . •;

         Please be':, advised that 'EPA intends to inspect the vasc-ek ll"
    upon  completion of the Foundation's remedial activities for. the
    purpose of providing information to the Court at the"     '   , •*•
    contradictory hearing ordered t by Judge. McNamara in his March'313,
    1995 order.
                                  Sincerely,
                  5 •
                  i
                             n S. Gregory
                         ,waited States Department
                         •! Environmental Enforcement
                          Environment and Natural
                             Division
                          Ph.  (202) 514-1134
                          Pax  (202) 514-8395
                                                               Ju »trice
                                                             Secticih'
                                  I-
    cc:  Via Telefax
- HUce Zeveiibergen, Esq.   !.. T
 -.Environmental .Defense Section
 U.S. Department  of Justice  •
 (202). 514-2584 .         i •
 Lynda F. I Carroll, Acting I Director,  Air,  Pesticides 6 Topcio
   Division,  Region  6,' Znyironmental Protection Agency
 .Bernard J. Klein, Xlain Aineworth & Company,  Inc.
 Alexander  Sheffield,  III! p  Chairman, USS Cabot/Dedalo
        Foundation,  Inc.  i   •  :  .   .         •          .
                                                                  !*,
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                                                                   ft.'
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                                  BRANCH                 IG2 260 1724   P.02/22
                            ENCLOSURE 4
                                                  November 30,1995
      SAMPLING SHIPS FOR PCBs REGULATED FOR DISPOSAL
                          (Interim Final Policy)

T. Introduction

    At the request of the United States Environmental Protection Agency's
(EPA's) Federal Facilities Enforcement Office and the EPA Regional PCB
Coordinators, this technical policy document was prepared by the Operations
Branch in the Chemical Management Division in the Office of Pollution
Prevention and Toxics TO provide an interim method of determining whether
polychlorinated biphenyls (PCBs) have been removed from ships (vessels).

II. Purpose

    This policy addresses management of PCBs and/or PCB items regulated for
disposal known or suspected to be on board vessels destined for scrapping for
purposes of metal recovery/recycling. This guidance is self-implementing.  There
are notification and recordkeeping requirements, however, no EPA PCB disposal
approval is required to carry out the PCB removal procedures as part of a
scrapping procedure. EPA may determine that information sent in the notification
is incomplete and retains the right to request complete information as required in
the notification.

    This policy provides two options for shipbreakers or scrappers to remove
PCBs from a vessel:

    (a) Ail known sources of liquid PCBs, defined in IV.(a) below, and all known
    uses of non-liquid PCBs, defined" in V.(a) below are removed.  No sampling or
    measurements are required for this removal.

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    (b) Use this policy to sample the vessel and chemicaily analyze the samples
    for the presence of PCBs to determine whether PCBs at concentrations
    regulated for disposal are present on the vessel. Scrappers can opt either to:

        (i) sample all items suspected to contain PCBs in all classes of uses of
     .  non-liquid PCBs (called Strata in VI.c.(ii)(B)(2)(c) below); or

        (ii) in place of sampling and analysis of items in all classes of known
      . uses of PCBs, scrappers may utilize this policy to remove some classes of
       uses of non-liquid PCBs and sample all other classes.

           As an example ofllfb), assume that for economic reasons, a
           scrapper decided to remove and dispose of as PCB waste all
           electrical cable, because in his/her experience a sufficient
           proportion of the cable is regulated for disposal.  The decision
           was based on the expense of sampling and analysis which
           would only confirm that all cable would be regulated. Another
           similar reason to support this decision is that the sampling and
           analysis costs to determine which cable was regulated
           exceeded the economic benefit from identifying regulated and
           non-regulated cable.  Once the electrical cable was removed
           and disposed of as regulated PCBs, the scrapper would still be
           required to either remove all other known classes of uses (air
           handling system gaskets and other known uses [other than
           cable and air handling gaskets]) or sample to determine
           whether there were regulated PCBs in these other known
           classes of uses of non-liquid PCBs.

    This policy does not address any other potentially regulated material such as
asbestos, lead, or any material considered hazardous under the Resource
Conservation and Recovery Act.

TIL NoTiflcatior]

    (a) At the point of sale of a vessel, which will undergo PCB removal prior to
    scrap metal recovery,  the seller (for Federal Government owned vessels, the
    seller is usually the Defense Reutilization and Marketing Service, the

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                  CMD-OPERriTlQNS BRftNO                 2C2 2£0 172-   3.24/22
Maritime Administration, or the General Services Administration) of a vessel
for scrap metal recovery shall notify the EPA Regional PCB Coordinator
where the vessel is berthed at  the time the bid is accepted, of:  (i) the time the
vessel will be moved from its  storage berth to the PCB removal point or
storage point prior to PCB removal, and (ii) the intended future location of
storage prior to PCB removal and the PCB removal location.

(b) At the point of sale, the purchaser of the vessel, which will undergo PCB
removal, shall notify the EPA Regional PCB Coordinator(s), where the vessel
will be located prior to and during PCB removal as part of the overall scrap
metal recovery process. The notification shall include:

    (i) the date the ship will be moved from the berth at the time of sale to any
    temporary storage berth prior to PCB removal and the date the vessel will
    be moved from the temporary storage location to the location where PCB
    removal will occur prior to and/or during scrap metal recovery;

    (ii) the location(s) of storage and PCB removal;

    (iii) the date of arrival at that (those) location(s);

    (iv) the proposed time period of the storage. PCB removal, and metal
    recovery activities;

    (v) the business address and phone number of a responsible party from the
    seller's office who can provide the status of the sale, PCB removal
    activities, and scrap metal recovery activities; and

    (vi) the business address and phone number of a responsible party  from
    the purchaser  of the vessel and/or the PCB removal company who  can
    provide information on the status of the PCB removal activities.

(c) Thirty calendar days  before starting the PCB removal activity from a
vessel, a scrap metal recovery company and/or PCB removal company shall
provide the EPA Regional PCB Coordinator(s) where PCB removal will
occur, with:

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       (i) A map showing the location of the storage facility and PCB removal
       location;

       (ii) The PCB removal plan which includes details on the identification of
       known sources of PCBs on the vessel.

       (iii)  A floor (deck) plan for each deck of the vessel showing the
       location(s) ofPCBs to be removed; and

       (iv)  The schedule for removing PCBs from the ship, including:
                                                i
           (A) the estimated date that all PCBs will be removed from the ship;

           (B) the estimated date all PCBs greater than or equal to (s) 50 parts
           per million (ppm), which are removed from the ship and placed in
           storage, will be removed from storage and sent for PCB disposal;

           (C) disposal method and company to be used for each kind of PCB
           waste *50 ppm, and

           (D) the PCB removal equipment decontamination procedures and
           schedule.

    (d) At any time, EPA inspectors shall have the option of inspecting any vessel
    during a PCB removal activity.

IV. Liquid PCBs

    (a) Known sources of Liquid PCBs

       Known sources of liquid PCBs potentially on board vessels are: electrical
    equipment - including transformers, capacitors, fluorescent light ballasts,
    voltage regulators, circuit breakers, liquid-filled cable, reclosers, rectifiers;
    hydraulic equipment; heat transfer fluids; vacuum pump  oil; air compressor
    lubricants; cutting oil; and grease.

    (b) Management and Disposal of Liquid PCBs

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                                   5P.HNCH                 202 2
       (i)  Prior to beginning scrap metal recovery and non-liquid PCB removal
       operations, all PCB items or equipment on board the vessel containing
       liquid PCBs at concentrations * 50 ppm shall be removed from the vessel
       and be disposed in accordance with die PCB disposal regulations at 40
       CFR 761 Subpart D. Accumulations of small capacitors present in
       fluorescent light ballasts and electronic equipment, which may be
       disposed of as municipal solid waste under 40 CFR 761, disposal of these
       items also may be addressed under the Comprehensive Environmental
       Response, Compensation, and Liability Act minimum reportable disposal
       quantity regulations.

       (ii) Impervious solid surfaces, (as defined at 40 CFR 761.123) which are
       contaminated with liquid PCBs, shall be cleaned to less than 100
       micrograms per 100 centimeters square (< 100 u.g/100 cm2) PCBs if the
       material beneath the surface is to be smelted in a smelter meeting the
       definition of a n industrial furnace in 40 CFR 261.10. If the material
       beneath the surface is not going to be smelted, then the surface shall be
       cleaned to <: 10 ug/'l 00 cm2.

       (iii)  Non-impervious solid surfaces, (as defined at 40 CFR 761.123)
       which are contaminated with liquid PCBs, shall not be evaluated for PCB
       removal by a surface sampling test, but cleaned to < 50 ppm, as measured
       by a core or scrape sample, if the solid beneath the surface will be
       recycled by smelting in a smelter meeting the definition at 40 CFR
       26! .10. If the solid beneath the surface will be recycled but not smelted
       in a smelter meeting the definition at 40 CFR 26 1.10, the PCB cleanup
       level is < 2 ppm, as measured by a core or scrape sample .

V. Non-Liquid PCBs

       Known Sources of Non-Liquid PCBs
       Known sources of non-liquid PCB materials in vessels are non-
    conducting materials in electrical cables (such as plastic and rubber), gaskets
    in air handling systems, other rubber gaskets, other felt gaskets, thermal

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Del-tie-1995  13:37        CMD-CPEF.HT IONS BRANCH                 282 2=0 172^
       insulation material (including fiberglass, felt, foam, and cork), sound
      deadening felt, oil-based paints, grouting/caulking, adhesives, tapes, rubber
      isolation mounts, foundation mounts, pipe hangers, rubber/plastic parts of all
      sizes and shapes, and any other materials where plasticizers were used.

      (b) Management and Disposal of Non-Liquid PCBs

          (i)  The concentration of PCBs in electrical cable shall be based on the
          concentration of PCBs in each non-metal, non-liquid component of the
          cable individually.  The concentration of PCBs in electrical cable shall not
          be based on the total weight of PCBs in the cable divided by the total
          weight (a) of all non-metal components, (b) of all metal components, or
          (c) of all non-metal and metal components. If one non-metal component
          of the cable is regulated for disposal, the entire cable is regulated for
          disposal.  Separation of PCB materials (*50 ppm PCBs) from non-PCB
          materials (less than 50 ppm PCBs) for purposes of disposal of PCBs
          and/or deregulation of metal (for purposes of PCB disposal) shall be in
          accordance with the approval  requirements in 40 CFR 761 Subpart D.
          PCBs ^50 ppm which are removed from the vessel are regulated for
          disposal and are subject to the requirements for storage and disposal at 40
          CFR 761  Subpart D. Disposal approvals may consider the determination
          of PCB disposal status of non-liquid PCBs based on a measurement of
          processed cable aggregate rather than individual cable components.

          (ii)  For purposes of this policy,  paints  and other thin coatings on metal
          will not be required to be removed if the coated metal will be smelted
          domestically in a smelter meeting the definition of an industrial furnace at
          40 CFR 261.10. For smelting outside the United States, export of the
          vessel having these metal coatings shall be pursuant to an EPA
          enforcement agreement.

   VI.  Sampling to Verify that PCBs Have Been Removed from a Vessel

      In the event that all of the following known sources of non-liquid PCBs:

          non-conducting materials in electrical cable; gaskets in air handling
          systems, rubber gaskets (other than gaskets in air handling systems), and

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        felt gaskets (other than gaskets in air handling systems); thermal
        insulation material (fiberglass, felt, foam, cork, etc.); sound deadening
        felt; oil based paints in containers (not paint applied to surfaces of the
        vessel); grouting/caulking; adhesives; tapes; rubber isolation mounts;
        foundation mounts; and pipe hangers;

have not been removed from a vessel, as on option to avoid sampling requirements
prior to scrapping, the following plan shall be used to sample a vessel to verify
that there are no PCBs in these applications at concentrations iSO ppm. EPA has
not designated a process or method for removal of PCB uses from a vessel.  In
Appendix 1, EPA has designated and required the chemical analysis including
extraction procedures. These procedures shall be used to determine PCB
concentrations for verifying that there are no PCBs at concentrations *50 ppm
remain on the vessel, either after removal of PCBs or verifying an assumption that
no PCBs need to be removed as required in this policy. These same procedures
shall be used for determining PCB concentrations for purposes of identifying
disposal status with respect to 40 CFR 761.

    (a)  Certification

        (i) Certification for domestic scrapping.

           The President or CEO of the PCB removal and/or scrapping company
        shall certify that successful removal and proper disposal of PCBs and
        PCB Items with a concentration of 50 ppm or greater on board the
        vessel(s) has been accomplished, the certification shall include
        statements that:

           (A)  All known PCB liquids at concentrations of 50 ppm or greater
           have been removed;

           (B)  Any liquids which have not been removed, which could contain
           PCBs based on their use, and which are not the result of dilution
            following the sale of the ship, have been analyzed for PCBs and
           found to be less than 50 ppm;

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(C) All items listed in each category have been removed and
disposed of in accordance with 40 CFR Subpart D, or representative
sampling conducted in accordance with this policy  indicated that the
items did not have to be removed because PCB levels were below 50
ppm.

(D) Records and documentation of sampling and analysis will be
maintained for five calendar years at the scrapping location following
completion of the last chemical analysis or the day of the last PCB
removal activity which ever is later. In the event that the scrapping
company, which is keeping these documents and records, ceases
business operations before the end of the five year period, the records
and documentation shall be sent to the EPA Regional PCB
Coordinator. In the event that a PCB removal company changes
address or becomes pan of another company, the PCB removal
company shall notiiy the EPA Regional PCB Coordinator of any new
location where the records and documentation will be kept.

(E) Copies of all manifests signed by the first transporter for PCB
waste transported for disposal shall be provided in the certification.

(F) The certification statement shall include the following language:

    I certify under penalty of law that this document and all
attachments were prepared under my direction or supervision in
accordance with a system designed to assure that qualified personnel
properly gather and evaluate information. Based on my inquiry of the
person or persons directly responsible for gathering information, the
information is, to the best of my knowledge and belief, true, accurate,
and complete. I am aware that there are significant penalties for
falsifying information, including the possibility for fines and
imprisonment for knowing violations.  Dated:	. Signature:	
   Title:	.

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      13;3S        CrD-OrE~HTIG;JD BRANCH
    (ii)  Certification for scrapping outside the customs territory of the United
    States

        Certification for scrapping outside the customs territory of the United
    States shall be accomplished through a compliance agreement vyith EPA.
                                   i
(b.) Records of the Sampling and Analysis Results

    The sampling and analysis results for all samples talcen to verify that
PCBs have been removed shall be maintained for EPA inspection. Results
should be listed two ways: by individual sample and by sampling scheme
stage (how the sample was selected in the sampling plan).

    The information required for each individual sample listing is at a
minimum: a unique sample identification number: the kind of material or
item sampled; the location where the sample was collected (the deck on the
vessel and frame number or the distance from the bow of the vessel to the
sample location); the date the sample was collected; the sample collector; the
amount  of sample collected; the  analytical procedure used; the PCB
concentration in the sample; and the limit of quamitation for the chemical
analysis.

    For each step in the sample selection process the unique samples selected
shall be listed in categories according to the outline of VI.c.(ii)-(iv)  below.
For example, each sample shall be listed for each category , i.e., deck, each
kind of material (felt gasket, pipe hanger, oil based paint, etc,), and each area
such as high voltage electrical equipment areas.

c.  Sampling Plan

    This sampling plan is a  variation of a stratified random sample. In this
kind of sampling, the entire  population of non-liquid PCBs is divided up into
mutually exclusive sub-populations called strata (singular for strata is
stratum). Each stratum is sampled independently and is represented
independently.  In this sample, the weight for the different strata in the total

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                               10

 sample is not equal, but is weighted toward the increased probability, based
on historical chemical analysis of PCB for PCBs on vessels, of finding larger
amounts of PCBs in certain uses. Samples are taken in each stratum
according to a random sampling procedure.

    In the event that the representative sample of a stratum finds one sample
^50 ppm, the entire stratum must be resampled following further removal of
non-liquid PCBs containing ;>50 ppm. Removal of only the sampled material
is not acceptable. Resampling requires regeneration of a new random
sampling of the stratum to determine  whether all materials containing *50
PCBs have been removed.

       For example,  assume that the sample of 25 electrical cables, selected
    in accordance with this policy, showed one cable having ^50 ppm PCBs
    in one of its non-liquid components.  Based on this sample all electrical
    cable would be considered regulated for disposal. It would not be in
    compliance with this policy to dispose of the one cable, replace the cable
    in the sample with another cable which did not have a non-liquid
    component ^50 ppm and assume that all electrical cable was <50 ppm
    and unregulated for disposal. Rather, a new 25 electrical cable sample
    would ha\>e to be re-elected in accordance with the policy and
    reanalyzed. It would be prudent to remove all cable of any type found to
    contain PCBs ^50 ppm before resampling.

    (i) Numbers of samples to be taken

       All samples shall be taken and analyzed from the materials remaining
    on the vessel in uses listed above in V.(a)  "Known Sources of Non-
    Liquid PCBs."  There are several different categories of quotas each
    requiring a minimum number of samples:  minimum total from the vessel,.
    minimum total from each deck, minimum total from each kind of use, and
    minimum total from each of three classes of use (strata).  Scrappers may
    sample more than the minimum number of samples in any or all
    categories.

    (ii) Minimum numbers of samples:

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                         11

(A) Minimum Total Number of Samples (T) - is the larger of fifteen
samples or the square root, rounded off to the to the nearest whole
number, of the gross weight of the vessel as sold in long tons (2,200
pounds equals one long ton);

(B) The minimum total number of samples shall be distributed as
follows:

    CO  When T is 15

        (a) Samples shall be taken according to the following
        priority order until fifteen samples have been collected. If
        there are no uses hi the category, proceed to the next
        category.

           (/)  Four air handling system gaskets.

           (ft) Three samples of electrical cable containing of non
           conducting, non-metal material. Each cable may have
           several different non-metal components which have to be
           analyzed individually.

           (Hi) One sample each from the following category:

               (A) rubber gaskets (other than air handling system
               gaskets)

               (5) felt gaskets (other than air handling system
               gaskets)

               (Q fiberglass, felt, foam, or cork thermal insulation
               material

               (D) sound deadening felt

               (£) grouting, caulking, rubber isolation mounts,
               foundation mounts, and adhesives

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                     12

           (F) tapes

           (Gj pipe hangers, and

           (//)- rubber/plastic parts of all sizes arid shapes
           (other than listed above in VLc.(ii)(B)(/)(a)

    (b) If there are insufficient uses to select fifteen total samples
    using the procedures in VI. c. (ii)(B)(./)(a), provide in the
    original notification (required in m. above) to the EPA
    Regional PCB Coordinator with a reduced scale deck plan of
    the ship and a written certification that this procedure  if
    followed would result in fewer than fifteen samples.

(2) WhenTis>15

    (a) Minimum Total Number of Samples on Each Deck ("deck
    quota") - three samples from each level/deck on the vessel,
    where known sources of non-liquid PCB uses are located
    prior to any removal activity;
       Minimum Total Number of Samples from Each Known
    Use of Non-Liquid PCBs - a minimum of one sample from
    each of the known uses of non- liquid PCBs in V,(a) which
    are present on the vessel .

    (c) A further categorization of samples is required as
    follows. The population of all known sources of non-liquid
    PCBs in V.(a) will fall into one of these three subpopulations
    which will be referred to as strata. The strata are: Stratum 1-
    electrical cable insulation, Stratum 2 - air handling system
    gaskets, and Stratum 3 - the other known sources of non-
    liquid PCBs as listed in V.(a), [excluding the known sources
    of non-liquid PCBs which compose the Stratum 1 and
    Stratum 2.]

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Cnj-0=ERHT10N5 BRnNCh                  222 2£0  1724   -.14/
              13

 (/)  Stratum 1- At least 0.4(T) electrical cable samples
 shall be taken.  Each non-conducting materials (plastic.
 rubber, etc.) from each electrical cable shall be
 chemically analyzed separately.  Three fourths of the
 total electrical cable samples or 0.3(T) samples shall be
 taken from electrical cable in engine compartments,
 auxiliary machinery compartments, areas having radio
 transmission and receiving equipment, x-ray equipment,
 radar equipment, and any other high voltage electrical
 equipment.

 (ji) Stratum 2 - At least 0.4(T) samples shall be taken
 from gaskets in air handling systems. One half of the air
 handling system samples or at least 0.2(T) samples shall
 be from air handling systems gaskets engine
 compartments, auxiliary machinery compartments, and  in
 areas where there fuel, explosives and munitions were
 stored and handled.

 (Hi) Stratum 3 - At least 0.2(T) samples shall be taken
 from this stratum. In the event that 0.2(T)*9, one sample
 shall be taken from each of the following nine groups
 (substrata):  rubber gaskets (other that air handling
 system gaskets); felt gaskets (other than in air handing
 system gaskets); thermal insulation material (fiber glass,
 felt, foam, and cork thermal  insulation material); sound
 deadening felt; grouting/caulking, rubber isolation
 mounts, foundation mounts, and adhesives; tapes; oil-
 based paint in containers (paint on surface of the vessel is
 not included); pipe hangers; and rubber and/or plastic
 parts of all sizes/shapes (other than listed in stratum 1,
 stratum 2. or the preceding substrata in this stratum). In
 the event -that there is an insufficient number of samples
 or 0.2(T)<9, the 0.2(T) samples shall be randomly
 selected from a numbered list of the nine substrata.

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                        14

       (d) Samples in different strata may be also be counted in the
       total number of samples for a deck in VI.c.(ii)(B)(2)(0), so
       long as all minimum total numbers of samples are taken for
       each stratum and each "deck quota". For example if the radar
       compartment is in one of1 the island decks and two Stratum 1
       samples are taken there, no additional samples are necessary
       to fill the "deck quota."  However, additional samples may
       be-taken from that deck to complete required numbers of
       samples for strata other than deck strata.

(C) Minimum Sample Number Example

    Assume that the vessel to be sampled is a 30,000 ton aircraft
carrier having six decks in the main body of the vessel and five decks
in the island.

    (1) According to  VI.c.(ii)(A) the minimum total number of
    samples is the square root of thirty thousand or 173.2 rounded off
    to 173.

    (2) According to  VI.c.(ii)(B)(2)(c), 69 samples of cable, 69
    samples of air handling systems gaskets and 35 samples of other
    known non-liquid uses ofPCBs are required.

    (3) Of the 69 samples for cable in Stratum 7, 52 are required to
    be from specified areas.

    (4) Of the 69 samples for air handling system gaskets in Stratum
    2,  34 are required TO be from specified areas.

    (5) Of the 35 samples taken for known non-liquid PCB sources
    other than electrical cable and air handling system gaskets
    (Stratum 3j, at least one sample shall be from each of the nine
    substrata in stratum 3.

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                                                                   -.l£-'22
                                15

(iii) Removal of Known Sources oi?PCBs Resulting in Non-Existing Strata

    In the event that ail of the known uses of PCBs (as listed in FV.(a) and
V.(a)) or in a particular stratum or category have been removed from the
vessel for purposes of PCB disposal, no samples are required to be taken from
that stratum or category to demonstrate that all PCBs ^50 ppm have been
removed. The minimum number of samples from the unsampled stratum (or
strata) do not have to be transferred to another stratum. The total number of
samples, T, is simply reduced by the total number of sampled from each
stratum which was not sampled, because all of a known use, which made up a
stratum had been removed from the vessel for PCB disposal.

(iv) Selecting Locations for Sampling

    Sample locations are to be selected employing floor (deck) plans, a
random number table or generator, and a tape measure. Sample locations on
each deck (or level) of a vessel are to be selected separately.

    (A)  Stage I - Selection of a Room (Space or Compartment). On each
    deck, sample sites for each stratum may be selected by three methods for
    the first stage, which is the selection of a room. Sample locations are
    taken using the Stage 2 and Stage 3 sampling procedures (in (/H) and (B),
    respectively, below.

        (/) Method 1  - In there event that there is only one room on a deck
        or one room in a stratum, the room is automatically selected.

        (2) Method 2 - Rooms (spaces or compartments), including sections
        of hallways and stairwells on each deck, are assigned sequential
        numbers and specific rooms (spaces  or compartments) are selected
        using the random number table or generator.

        (3) Method 3 - Two dimensional  coordinates are to be randomly
        selected on each deck based on a scale drawing of the deck (floor)
        plan.  Location of selected coordinates is somewhat facilitated by the
        bow to stern markings all over a vessel. Starboard to port dimensions
        may be determined by using the floor plan and measuring from

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                            16

    interior bulkheads (walls) rather from the side of the vessel.

(B) Stage 2 - Once a space or compartment is selected, each wall and the
ceiling is assigned a number and a wall/ceiling is selected using a random
number table or generator.

    If there is only one room on a deck or only one room in a stratum the
flexibility in Stage 2 and Stage 3 is restricted.  In either of these two
cases, Stage 2 and Stage 3 are as follows: prepare a numbered list (make a
census of) all applicable known locations of sources of non-liquid PCBs
(see V.(a)) in the lone room/stratum; select the number, which
corresponds to a sample locations in the numbered list, using a random
number generator; and collect the sample(s) from the selected locations.

(C) Stage 3 - Location of a sample site on the selected wall (bulkhead) or
ceiling (overhead) will be purposive (or intentional) with three conditions.

    (I) all quotas must be met for all strata,

    (2) if more than one size of cable is present, all cable in the area
    selected shall be assigned a unique number and one cable selected for
    sampling using random number table or generator, and

    (3) only one sample each of any specific kind of known use of non-
    liquid PCBs may  be collected from a single room (space or
    compartment), unless the number of rooms (spaces or compartments)
    having  ihe specific kind of use is smaller than the total number of
    samples required.

    Whichever known source of non-liquid PCBs requires a sample and is
found in the room, shall to be sampled from the selected wall or ceiling .
If no such known source of non-liquid PCBs is present, another wall or
ceiling shall be randomly selected using the procedures in stage 2 and
stage 3. Resampling of a wall or ceiling when there is no known source
of non-liquid PCBs present  shall occur no  more than twice (a total of
three selections including the original selection) before it is necessary to
select another room through stage 1.

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      13:40        CMj-Q?ERftT10MS BRANCH                  222 250 1724   P. 18/22
                                17

(D) Guidance 10 Facilitate Sample Site Selection

       First, locate the specified cable and specified air handling system
    gaskets sample sites and collect samples. Likely cable (Stratum 1) will be
    more prevalent on a limited number of decks. Likewise, gaskets (Stratum
    2) will be more prevalent on a limited number of decks. Samples from
    these two strata will likely fill the "deck quota "from (2) above. It may be
    that the Stratum 1 and Stratum 2 samples will also have to be used to Jill
    other "deck quota" even though these materials may be less prevalent
    than on the other decks, they may be  more prevalent than the scarcer
    Stratum 3 materials. Note well:  Because of the limited prevalence and
    wide distribution of the varying known non-liquid uses ofPCBs on board
    the vessel, it is prudent to attempt to fill "deck quotas" with cable first and
    then with air handling system gaskets.

        To fill Stratum 3 - "known uses of non-liquid PCBs," it may be more
   _productive to not pre-determine what use would be sampled at a random
    location,  but to search for any/all of the uses and keep a tally of the use
    strata as the are filled by the random sampling.  Assume that the lower
    decks on a vessel have a higher proportion of thermal insulating material
    but a lower proportion of electrical cable. Even if all deck strata had
    been filled on the lower decks it would be prudent to use the random
    sampling scheme to find thermal insulating material for Stratum 3 even
    though the "deck quota" might already have been filled.  Either a formal
    or informal comprehensive or cursory census of known uses of non-liquid
    PCBs on board the vessel Appendix 2 is an example, will probably speed
    up sample site selection.

       It might also prove prudent to have several alternate randomly
    selected sites available when sampling to account for the possibility of an
    ineligible site (a site where no known uses of non-liquid PCBs are found
    at a randomly selected site). The sampling scheme does not provide for
    or tolerate the purposive (or intentional) selection of a "nearby" or other
    convenient sample in the event that a randomly selected site is ineligible.

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                                   18

d.  Resampling after Additional Removal of 250 ppm PCBs

    In the event that any individual sample shows greater than 50 parts per million
PCBs, further removal shall occur and the entire sample category shall be
reselected. It is unacceptable to remove a material showing ^50 ppm and then
assuming that there are no other PCBs present at ^50 ppm in the category. In a
representative sample, one "hit" of *50 ppm requires either removal of all of the
items on the vessel or resampling of the entire population represented by the
sample.

VII. Disposal of Removed PCBs

    Once sampled and characterized as to PCB  concentration, in.accordance with
the requirements of 40 CFR 761, PCBs and PCB Items shall be contained and
marked for storage and/or manifested for transportation to approved
storage/disposal facilities for disposal.

    In place of sampling, all non-liquid PCBs removed from a vessel may be
assumed to contain greater than 50 ppm PCBs and then must be disposed of in
accordance with 40 CFR 761.

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j£>Jt-19S5  13=41        CMD-OPERftTIONS BRftNCh                 202 2BQ 1724   P.2S/22
                                 Appendix 1

                     Determination of the PCB Concentration
                 in Non-Liquid PCB Uses for Purposes of Disposal
      The PCB regulations do not address the determination of PCB concentrations
  based on an extraction which simulates environmental exposure. The ultimate fate
  of many of the non-liquid PCBs is thermal destruction in metal smelting at a
  smelter meeting the definition at 40 CFR 261.10. For purposes of thermal
  destruction all PCBs are considered to be accessible to and involved in the
  destruction process. Risk from thermal destruction should be approached from a
  total PCB concentration. Therefore, for PCBs to be disposed of by thermal
  destruction methods, an exhaustive method shall be used to extract the PCBs
  which are often tightly bound in a plastic, rubber, or resinous matrix. Extraction
  of PCBs from non-liquid uses shall require toluene as a solvent in a soxhlet
  extraction method equivalent to Method 3540 in SW-846 "OSW Test Methods for
  Evaluating Solid Waste." The extract shall be cleaned with concentrated sulfuric
  acid.  Extracts shall be blown down with nitrogen or evaporated in a rotary
  evaporator, since using a Kudema-Danish apparatus  to concentrate toluene has
  been found to be problematic, this apparatus is not recommended for use.
  Chemical analysis shall be according to Method 8080, Method 8081, or Method
  8280 or equivalent also in SW-846 "OSW Test Methods  for Evaluating Solid
  Waste."

      EPA may consider other proposed extraction and/or chemical analysis
  procedures so long as, at a minimum, the proposals are submitted to EPA no less
  than 90 days prior to the intended use of the methods  and the following
  information is also included with the proposal.

      (1) A detailed description of the proposed method. Details should be on the
      order of the details in Method 3540 and Method 8080, Method 8081, and
      Method 8280.

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    (2) Analytical results from at least ten representative samples, having PCB
    concentrations above and below the concentration of concern, using both the
    proposed method and Method 3540 with Method 8080/8081/8280 are
    submitted and the performance of the proposed method indicates equivalence
    (or improvement) in precision, accuracy, sensitivity, and specificity.

    If EPA accepts the proposal, the acceptance and any conditions of acceptance
will be in forwarded to the proposer in writing within the 90 days of the receipt of
a complete proposal.  EPA reserves the right to conduct its own formal
verification of the proposed method before issuing an approval. If EPA chooses to
verify the method, EPA will notify the proposer in writing no more than 30 days
after receipt of the proposal. The notification will indicate the time needed for
verification which will be a minimum of ninety days.

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                                                                                              CO
                                                                                              OJ
       Appendix 2 - EXAMPLE OF NON-LIQUID PCB CENSUS ON ONE DHCK OF A SHIP
IIAKGER DECK
WON-IJOUJCD PCB USE

Electrical Cable
Electrical Cable
Substratum
flaskets
Gaskets Substratum
Rubber Gaskets
Felt Gaskets
Thermal Insulation
Material (including
fibrous glass, felt:,
foam, and cork) ,
Hound Deadenin
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                 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                                WASHINGTON, D.C. 20460
                                                                             OFFICE OF
                                             AUG   5  fQOff                ENFORCEMENT AND
                                                   ^  '^0              COMPLIANCE ASSURANCE

Mr. James E. Caponiti
Associate Administrator for National Security
U.S. Department of Transportation
Maritime Administration
400 Seventh Street, S.W.
Washington D.C.  20590

Dear Mr. Caponiti:

       I am responding to your letter of July 25, in which you request an extension of all the
terms and conditions of the enforcement discretion letter for ship scrapping dated November 30,
1995 as modified by the June 6, 1996 paint sampling guidance. The extension you propose would
increase to twelve the number of vessels covered in the agreement. All vessels are located at the
James River Reserve Fleet in Fort Eustis, Virginia. While it is anticipated that the PCBs will be
removed in EPA Regions 3, 4 and 6, since the bidders and the actual PCB removal/scrapping sites
are not known at this time, EPA recognizes that these additional ten vessels may be scrapped in
EPA regions other than 3, 4, and 6.

       The requested extension is approved.  Please update Enclosure 1  from the November 30,
1995 letter as soon as you have the information.  Please have your staff send a copy of the
updated Enclosure 1 to the EPA contacts listed on page 7 of the November 30 letter.  Feel free to
have your staff contact Diane Lynne from my Office at 202-564-2587 if you have any additional
questions.
                                       Sincerely,
                                       Craig £. Hooks
                                       Acting Director
                                       Federal Facilities Enforcement Office
                                                                       R*cycltd/RtCYd*blt
                                                                       (Mow) MOi SoyfCwHI Ml Ml p^w Oul
                                                                       coxum • tout 7S« ncyom tt>«

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       COMPLIANCE WITH THE TSCAPCB  DISPOSAL REGULATIONS:
         SAMPLING  AND ANALYZING PAINT ON  METAL SURFACES
          OF VESSELS BEING SCRAPPED FOR  METAL RECOVERY
Sample Size and Weight

      Each sample (or subsample in a composite sample) shall be scraped from an area of at
least 30 centimeters (30 cm.) by 30 cm. including all paint from the outer surface to bare metal.
If the 30 cm. by 30 cm. does not weigh at least 50 grams, additional paint shall be scraped
adjacent to the 30 cm. 30 cm. area until at least 50 grams of paint is in the sample. _
Number of Samples to Be Collected and Analyzed

      The number of chemical analyses exclusive of quality control samples (blanks, duplicates,
standards, and spiked field samples) appears in parentheses in the next section. The number of
chemical analysis is at a minimum eight plus the potential of one additional sample from each
deck.
Location of Sample Collection Sites and Procedures for Compositing Samples

1.  One sample from each side of the vessel at any location above the waterline1         (2)

2.  One sample from each side of the vessel at any location below the waterline1         (2)

3.  One sample from the outside of all decks above the main deck                     (1)

4.  One sample from the top of main deck                                         (1)

5.  Samples from each deck below and above the main deck as follows:

      a. One sample composited from three subsamples: a wall, the  deck and the
      bulkhead of the hallways/corridors.

      b. One composite sample from the deck, the bulkhead, and each wall of one
      room which is in a living quarters, office space, or  other "white collar" area.

      c. One composite sample from one subsample from each room on the deck
   'The two locations of samples with respect to waterline is to address the possibility of the use
of different kinds of paint below the water line. The below the waterline sample does not
necessarily have to be under water, only in the area where the paint differs. Often there are even
two different colors of paint for these two locations.

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       which has been used to store ammunition, fuel, or other explosive or flammable
       material, including but not limited to engine rooms, rooms  containing hydraulic
       equipment and rooms containing heat transfer equipment.

6.  Composite into one sample all of the samples from each deck taken in 5.a., (above)     (1)

7.  Composite into one sample all of the samples from each deck taken in 5.b. (above)    (1)

8.  Analyze the composite sample from each deck taken according to S.c. individually.     (*)


* the number of decks on the ship


Sample Preparation Prior to Extraction

       The paint shall be pulverized or otherwise homogenized.


Extraction , Cleaning and Analysis of the Samples

       Extraction cleanup and instrumental analysis shall be according to the methods in SW-846,
Test Methods for Evaluating Solid Waste, as specified below.

       Sample Extraction

             A minimum of 50 grams of paint for each sample or composite sample to be
       extracted. The extraction solvent shall be toluene and extraction shall be according to
       Method 3540B or 3541.  Once  the extraction is complete, toluene may be solvent
       exchanged into a solvent appropriate for cleaning and instrumental analysts.

       Cleaning the Extract

             The  extract shall be cleaned using Method 3665 followed by 3620A.

       Instrumental Analysis of the Cleaned Extract

             The  cleaned extract shall be analyzed according to Method 8080A or 8081.

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       Ouantitation Limits for the Instrumental Analysis

             Quantitation limits for total PCBs shall be less than or equal to 5 micrograms
       PCBs per gram of paint. If quantitation limits are greater than 5 micrograms PCBs per
       gram of paint, the extract shall be further cleaned according to Method 3665 and 3630.
Regulated PCBs

       If PCBs are found in any of the samples or composite samples at concentrations greater
than or equal to 50 ppm, these PCBs are regulated for disposal and prohibited from export.

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Linda,

I am very concerned about the chemical extraction procedures (Methods 3550 and 3580) used to
Gascoyne Laboratories to analyze the paint.  Unless a laboratory is familiar with PCBs in these
materials the tendency is to use the quicker/cheaper extraction procedures which are more
applicable to soils. Until  someone provides OPPTS with data showing that cheaper and quicker
extraction techniques (Methods 3550 and 3580) are equivalent to method 3540B and 3541,
OPPTS will require the more exhaustive extraction methods for the analysis of paint and
plastic/rubber materials containing PCBs.  Admittedly, these analytical procedures (3540B and
3541) take longer and may be more expensive, they more clearly reveal the true PCB content in
these matrices.  EPA enforcement used the more exhaustive extraction methods in analyzing
samples taken from the ex-Cabot/Dedalo.

                                                            John  -'

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                  UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                                WASHINGTON, D.C. 20460
                                       OCT 2 4  1997
                                                                           OFFICE OF
                                                                        ENFORCEMENT AND
                                                                       COMPLIANCE ASSURANCE
MEMORANDUM
SUBJECT:
FROM:
TO:
Continuance of OPPTS Role in Development, Review, and Concurrence of
Enforcement Discretion Agreements and Letters

Steven A. Herman
Assistant Adminis

Lynn R. Goldman, M.D.
Assistant Administrator
 For Prevention, Pesticides, and Toxic Substances
       I wanted to drop you this note to be sure we are coordinated in the development, review,
and concurrence of enforcement discretion agreements and letters addressing unauthorized use of
PCBs and their distribution in commerce, export of PCBs, and disposal of PCBs.

       We continue to contemplate appropriate acts of enforcement discretion, counting on
OPPTS to assist in the development, review, and concurrence of technical provisions included in
these documents. Before I authorize any OECA official to sign any acts of enforcement
discretion concerning these PCB issues, I am requesting a written concurrence by OPPT staff on
all future agreements, similar to what we've done in the past.

       Would you please send me a note  back confirming this plan to stay coordinated?
             Beeycled/fl«cyct»b»« . ptwed »Ah Vegetable Ol Based Inks on 100% Recycled Paper (4O% Poslconsumer)

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        ^        UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
        f                       WASHINGTON. D.C. 20460
                                  NOV -4  1997

MEMORANDUM                                                            OFFICE OF
1 ^ 'V t                                                      PREVENTION. PESTICIDES AND
                                                                         TOXIC SUBSTANCES
SUBJECT:   OPPTS Role in the Development of Enforcement Discretion Actions
FROM:      Lynn R. Goldman, M.D.
             Assistant Administrator

TO:          Steven A. Herman
             Assistant Administrator
             Office of Enforcement and Compliance Assurance

       Thank you for your memorandum dated October 24, 1997, in which you ask that OPPT
remain committed to assisting OECA in the development of, and providing concurrence on,
PCB-related enforcement discretion agreements and letters. Of most immediate concern to
OECA are the pending agreements addressing PCB use and distribution in commerce, and export
for disposal.

       We agree that continued OECA-OPPTS coordination in the development of PCB-related
enforcement discretion actions is proper.  OPPTS (or OPPT) will  remain involved in the review
of. and will provide written concurrence on (where appropriate), acts of enforcement discretion
concerning PCB issues. Additionally, in cases'where technical and/or policy assistance is needed
in the development of the actions, OPPTS will contribute.

       However, to facilitate OPPT review of the subject material, it will be expected that
OECA maximize the use of  materials/language previously approved where possible, and redline
or otherwise highlight those provisions \vhich vary from similar, previously issued and OPPT-
concurred-upon actions.  Using "boilerplate" and highlighting new language should minimize
OPPT's review time of materials (or sections of materials) previously approved.

       These commitments are made with the understanding that the timeliness of OPPTS' input
may on occasion be impacted by resource availability and Agency priorities.

       I hope this adequately responds to your request. If you have any questions, please do not
hesitate to contact me.
                                                                     Recycl«d/R«cycl«bl«
                                                                     Pnmad wnh Soy/CanoU Ink on paptr t
                                                                     contains at Leas) 50% rocydod fibar

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             UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                        WASHINGTON, D.C. 20460
                         MAR 0 3 1995
                                                          OFFICE OF
                                                        ENFORCEMENTAND
                                                      COMPLIANCE ASSURANCE
                                or Use of Enforcement Discretion
MEMORANDUM  '

SUBJECT:  Processing Re

FROM:     Steven A.  Hei
          Assistant  Administrator
                              •
TO:       Assistant  Administrators
          Regional Administrators
          General Counsel
          Inspector  General

     In light of the reorganization  and consolidation of the
Agency's enforcement and compliance  assurance resources
activities  at Headquarters,  I believe  that it is useful to
recirculate the attached memorandum  regarding "no action"
assurances1  as a reminder of both this policy and the procedure
for handling such requests.  The  Agency has long adhered to a
policy against giving definitive  assurances outside the context
of a formal enforcement proceeding that the government will not
proceed with an enforcement  response for a specific individual
violation of an environmental protection statue,  regulation, or
legal requirement.   This policy,  a necessary and critically
important element of the wise exercise of the Agency's
enforcement discretion, and  which has  been a consistent feature
of the enforcement program,  was formalized in 1984  following
Agency-wide review and  comment.   Please note that OECA is
reviewing the applicability  of this  policy to the CERCLA
enforcement program,  and will issue  additional guidance on this
subject.

     A "no  action" assurance includes,  but is not limited to:
specific or general  requests for  the Agency to exercise its
enforcement discretion  in a  particular manner or in a given set
of circumstances (i.e., that it will or will not take an
enforcement action);  the development of policies or other
statements  purporting to bind the Agency and which  relate to or.
would affect the Agency's enforcement  of the Federal
environmental laws and  regulations;  and other similar requests
     1  Courtney M.  Price, Assistant Administrator  for Enforcement
and Compliance Monitoring,  Policy Against "No Action"  Assurances
(Nov.  16, 1984) (copy attached).
                                                      PhfliMwDiSoyJCWilnkenpapwauI
                                                      conuira m lun 7S% locydod toor

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for forbearance or action involving enforcement-related
activities.  The procedure established by this Policy requires
that any such written or oral assurances Have the advance written
concurrence of the Assistant Administrator for Enforcement and
Compliance Assurance.

     The 1984 reaffirmation of this policy articulated well the
dangers of providing "no action"-assurances.  Such assurances
erode the credibility of the enforcement program by creating jreal
or perceived^Inequities in the Agency's treatment of the
regulated community.  Given limited Agency resources, this
credibility is a vital incentive for the regulated community to
comply with existing requirements.  In addition, a commitment not
to enforce a legal requirement may severely hamper later,
necessary enforcement efforts to protect public health and the
environment, regardless of whether the action is against the
recipient of the assurances or against others who claim to be
similarly situated.

     Moreover, these principles are their most compelling in the
context of rulemakings:  good public policy counsels that blanket
statements of enforcement discretion are not always a
particularly appropriate alternative to the public notice-and-
comment rulemaking process.   Where the Agency determines that it
is appropriate to alter or modify its approach in specific, well-
defined circumstances,  in my view we must consider carefully
whether the objective is best achieved through an open and public
process (especially where the underlying requirement was
established by rule under the Administrative Procedures Act),  or
through piecemeal expressions of our enforcement discretion.

     We have recognized two general situations in which a no
action assurance may be appropriate: where it is expressly
provided for by an applicable statute, and in extremely unusual
circumstances where an assurance is clearly necessary to serve
the public interest and which no other mechanism can address
adequately.  In light of the profound policy implications of
granting no action assurances,  the 1984 Policy requires the
advance concurrence of the Assistant Administrator for this
office.  Over the years, this approach has resulted in the
reasonably consistent and appropriate exercise of EPA's
enforcement discretion, and in a manner which both preserves the
integrity of the Agency and meets the legitimate needs served by
a mitigated enforcement response.

     There may be situations- where the general prohibition on no
action assurances should not apply under CERCLA (or the
Underground Storage Tanks or RCRA corrective action programs).
For example,  at many Superfund sites there is no violation of
law.   OECA is evaluating the applicability of no action
assurances under CERCLA and RCRA and will issue additional
guidance on the subject.

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     Lastly, an element of the 1984 Policy which I want to
highlight is that it does not and should not preclude the Agency
from discussing fully and completely the merits of a particular
action, policy, or other request to exercise the Agency's
enforcement discretion in a particular manner.  I welcome a free
and frank exchange of ideas on how best to respond to violations,
mindful of the Agency's overarching goals, statutory directives,
and enforcement and compliance priorities.  I do, however, want
to ensure that all such requests are handled in a consistent and
coordinated manner.

Attachment

cc:  OECA Office Directors
     Regional Counsels
     Regional Program Directors

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       T* UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                        WASHINGTON. D.C. 20460
                            N0V I 61934

              :       •                           .           Office OF
                                                         CNFORCtMENT AMD
                                                       COMPLIANCE MONITORING
 MEMORANDUM

 SUBJECT:   Policy Against "No Action"  Assurances

 FROM:      Courtney M.  Price (~^&ud~-^ t O .T/*-^-<—
           Assistant Administrator  for Enforcement
             and Compliance Monitoring

 TO:        Assistant Administrators                            :
           Regional Administrators                     :
           General  Counsel
           Inspector General


     This  memorandum reaffirms  EPA policy against giving
 definitive assurances  (written  or  oral) outside the  context  of
 a  formal enforcement proceeding that  EPA will not proceed  with
 an enforcement  response  for a specific individual violation  of
 an environmental protection statute,  regulation, or  other
 legal requirement.

     "No action" promises  may erode the credibility  of EPA's
 enforcement program  by creating real or perceived inequities
 in the Agency's treatment  of  the regulated community.  This
 credibility is  vital as  a  continuing  incentive for regulated
 parties to comply with environmental protection requirements.

     In addition, any commitment not to enforce a legal
 requirement against a particular regulated party may severely
 hamper later enforcement efforts against that party, who may
 claim good-faith reliance  on that assurance, or against other
 parties who claim to be  similarly situated.

     This policy against definitive no action promises to
parties outside the Agency applies in all contexts,  including
assurances requested:

     0   both prior to and after a violation  has been committed;

     0   on the basis that a Statfe or local government is
        responding to the violation;

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