Y2K Concerns Over Chemical Plants

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Y2K CONCERNS OVER CHEMICAL PLANTS

Date: 990511

From: http://www.nj.com/news/times/

By Rich Staff Writer, The Times, 05/10/99

Trenton -- Could year 2000 technology failures lead to the release of

toxic substances from chemical plants?

That's the question the U.S. Senate's special committee on the year

2000 problem wants to answer today as it tours a Burlington County

factory and holds a hearing at the State House.

The state's chemical industry says it will be ready for the Y2K

computer date-recognition problem, and there's little chance of any

accidents that might pose a risk to the public. But environmental

activists say the risks that remain are " perilous, " and are calling on

state regulators to verify the industry's claims of compliance.

U.S. Sen. , R-Utah, and the staff of the Senate

committee want to know if enough is being done to safeguard the public

from a variety of potential Y2K problems, including everything from

power failures to interruption of government benefit programs.

Chemical companies use date-sensitive technology in automation

systems that control the flow of chemicals throughout their

facilities. These microprocessors, known as " embedded systems, " also

guide safety systems. Many use a two-digit date storage format that

may not properly recognize " 00 " as the year 2000.

New Jersey was chosen for the Senate hearing because it has one of

the largest chemical industries in the country, with more than 800

plants employing nearly 100,000 workers. There are 172 facilities

handling potentially toxic materials in Mercer and Burlington counties

-- including 33 in the city of Trenton -- and in Bucks County, Pa., .

and his staff will tour the Sybron Chemical Inc. facility in

Pemberton Township this morning, with the State House hearing

scheduled to begin at noon. One of the witnesses will be Dr. Gerald

Poje of the U.S. Chemical Safety and Hazard Investigation Board.

In a report on Y2K risks for the chemical industry, Poje found that

large chemical and pharmaceutical companies " are unlikely to

experience catastrophic failures. " But the readiness of smaller

players is unclear.

" One theme all experts agree on is that failure from Y2K

noncompliance at small and mid-sized enterprises is more likely, " the

report found. " The reason is a general lack of awareness, lack of

resources and technical know-how for fixing the problems. . . . In the

little time left, there is very little chance of changing that

reality. "

Assumptions that smaller chemical firms are unprepared for Y2K are

not accurate, said Hal Bozarth of the Chemical Industry Council of New

Jersey.

" Everyone knows duPont, but they may not know the Hal Bozarth

Chemical Co., " he said. " That doesn't mean the Hal Bozarth Chemical

Co. isn't on top of the issue. It just means people are not as

familiar with them.

" The chemical process industry was one of the leaders in

incorporating technology into its manufacturing systems, " Bozarth

added. " We think that because of the technical expertise in the

industry, (Y2K) will be a relatively low concern for us. I think New

Jersey's chemical companies are ready to meet the challenge. "

Jane Nogaki of the New Jersey Work Environment Council had a

different perspective, noting that industry expertise hasn't prevented

8,247 reported releases of " extremely hazardous " substances reported

to the state since 1986.

" It is our contention that despite corporate and government efforts

to identify and remedy Y2K problems, the situation in New Jersey

remains perilous for workers and residents alike, " said Nogaki.

" Despite assurances, no one knows how many glitches may occur when the

clock strikes midnight. The results could include catastrophic

chemical releases putting thousands of workers and citizens at risk

and damaging the environment.

" The potential for an accident is there, but it's a very preventable

thing if the companies do a thorough examination of their processes, "

she added. " The problem is that there isn't an accounting of how

mid-sized and small companies are doing. It's largely an unknown risk

at this time because there really isn't any way of assessing their

readiness, and no one at the state level has really tried. "

Nogaki's advice to the Senate committee is " not to overreact to

potential dangers, but not to underreact, either. " She called on the

state Department of Environmental Protection to take steps to

independently verify the compliance claims of chemical manufacturers.

One area where Nogaki and Bozarth agree is that the chemical industry

will be affected by the Y2K readiness -- or lack thereof -- of other

significant players.

" One of our biggest concerns is whether our friends in the monopoly

utility industry will be able to keep the power on, " said Bozarth.

" That's a real concern for us. It's not the chemical companies or

pharmaceutical companies you need to worry about. It's the utilities

who are not used to the scrutiny. "

A recent report by the North American Electric Reliability Council,

an industry group, said nearly three quarters of all electric

utilities will complete their year 2000 projects by June 30. Some

industry critics say that assessment is optimistic.

Nogaki said chemical firms need to work with suppliers as well as

with local emergency management officials in developing contingency

plans.

" There will be additional pressure on emergency management teams to

respond to Y2K incidents, " said Nogaki, a member of the Burlington

County Local Emergency Planning Committee. " The Y2K issues are

multifaceted, although the chemical one has the most potential for

danger.

New Jersey firms face a June 21 deadline to file a Risk Management

Plan with the federal Environmental Protection Agency.

" Their risk management plan requires them to determine their

worst-case scenario and how they would go about handling it, " Nogaki

said.

© 1998 The Times

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