UNITED STATES
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E. I. du Pont de Nemours and Company
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DuPont Position on PFOA
DuPont's Commitment to Safety
DuPont is committed to putting our science to work to ensure our workers are
safe, the public is safe, our products are safe and the environment is well
protected. DuPont products made with or containing trace amounts of PFOA are
safe for consumers - this has been verified by regulatory agencies in the United
States and in other countries. To date, there are no known human health effects
associated with PFOA. Based on health and toxicological studies conducted by
DuPont and other researchers, DuPont believes the weight of evidence indicates
that PFOA exposure does not pose a health risk to the general public.
Nevertheless, the presence of PFOA at low levels in the blood of the general
population has raised questions that need to be addressed. This has also
resulted in uncertainties in the marketplace. As a result, we are using our
science to create environmentally sustainable, competitively superior solutions
to meet and exceed our customers' needs.
Background
In late 2002, the U.S. Environmental Protection Agency (EPA) initiated a review
of PFOA that led to a public process to develop new data on the issue and reduce
scientific uncertainties surrounding pathways of human exposure and potential
risks. That process, formally launched early in 2003, included drafting a
preliminary risk assessment; soliciting letters of intent from fluoropolymer and
fluorotelomer manufacturers to provide data on a range of topics involving
processes, releases, production volumes and toxicity; and developing formal
Toxic Substances Control Act (TSCA) Section 4 Enforceable Consent Agreements
(ECAs) and Memoranda of Understanding (MOUs). Fluoropolymer and fluorotelomer
manufacturers also cooperated in developing voluntary research activities
addressing potential toxicity and degradation of our products. Information
developed under this process has been entered into the public docket.
DuPont has supported the EPA public process and has worked collaboratively to
meet the needs of the Agency in gaining greater knowledge about PFOA and its
impact on human health and the environment. In addition, DuPont will work
individually and with others in industry to inform EPA's regulatory counterparts
in the European Union, Canada, China and Japan about activities and new
information surrounding PFOA.
EPA Positions on Safety of Products and Human Health Effects
The EPA's comments with regard to the safety of products are: "The information
the EPA has available does not indicate that the routine use of household
products poses a concern. At the present time, EPA does not believe there is any
reason for consumers to stop using any products because of concerns about PFOA.
EPA wants to emphasize that it does not have any indication that the public is
being exposed to PFOA through the use of Teflon(R)-coated or other trademarked
nonstick cookware. Teflon(R) and other trademarked products are not PFOA".
The EPA's comments with regard to human health effects are: "Although our risk
assessment activities are not yet complete and new data may change the current
picture, to date EPA is not aware of any studies specifically relating current
levels of PFOA exposure to human health effects".
Stewardship
Despite the fact that PFOA is not a regulated chemical, DuPont has dramatically
reduced emissions of PFOA from our facilities - having achieved a 90 percent
reduction globally from 1999 to 2005. In addition, DuPont has developed
technologies which will substantially eliminate PFOA content in our products and
emissions from our manufacturing facilities by 2007. All of DuPont actions have
been embodied within the U.S EPA PFOA 2010/2015 PFOA Stewardship Program. DuPont
was the first company to join the EPA program. As a part our agreement, DuPont
will report to the Agency our global progress against our commitment, and that
information will be available to our shareholders and the public.
DuPont has proactively also analyzed the content, estimated potential
theoretical exposure and conducted risk characterizations to assure the safety
of consumer products. These studies were conducted by a third party and
peer-reviewed by an independent scientific panel. The results reaffirmed
DuPont's position that products are safe for their intended uses, and the use of
the products would not result in quantifiable exposure to consumers.
Fluoropolymers
Product Benefits
Products made with fluoropolymers are used in many critically important
applications. Because of their unique characteristics they are widely used where
dependable performance is essential. Critical industrial uses for fluoropolymers
include insulation for wire and cabling, low emissions fuel hoses, pollution
filters, high purity handling systems for integrated chip manufacture, and
valves, tubing, liners and gaskets for severe service applications.
The products and applications listed above have useful and unique properties
such as resistance to chemical or environmental attack, high temperature
capabilities, non-stick characteristics, and electrical properties. In addition,
non-stick coated cookware facilitates healthy cooking while providing a surface
that is easily cleaned.
Role of PFOA
DuPont uses PFOA as an essential processing aid to manufacture fluoropolymers.
PFOA is not incorporated in the polymer itself and is largely removed in the
manufacturing and conversion process for virtually all industrial fluoropolymer
applications. PFOA is also removed in the conversion process for fluoropolymer
cookware applications. DuPont research has found no detectable levels of PFOA in
cookware products made with DuPont non-stick coatings, including those sold
under the Teflon (R) brand.
Alternatives to PFOA
For fluoropolymers, to date, we have not identified any viable alternatives to
the use of PFOA as a processing aid to make fluoropolymers. Therefore, DuPont
has focused on PFOA emissions reductions from manufacturing operations and
reducing PFOA content in our products. Since 2000, we have reduced emissions
from our worldwide manufacturing plants by 90 percent with a goal of 98 percent
reduction by year end 2007. DuPont has also developed low PFOA dispersion
products using new technology under the "Echelon" brand. These new products are
being launched in 2006 and several grades are fully commercialized.
Fluorotelomers
Product Benefits
Products made with fluorotelomers are used in many critically important
applications. Because of their unique characteristics they are widely used where
dependable performance is essential. Products made with fluorotelomers protect
medical care providers against blood-borne pathogens and provide superior
performance in extinguishing hydrocarbon fires, and can contribute significant
environmental benefits by extending the life of and providing easier maintenance
of many consumer products.
The products and applications listed above bring consumers many benefits, which
include ease of care, reduced maintenance, and extended life for a broad range
of articles used every day.
Role of PFOA
DuPont uses a completely different chemistry and manufacturing process to
produce fluorotelomers, also known as DuPont(TM) Teflon(R) and Zonyl(R) stain-,
water- and grease-repellant products. Fluorotelomer products are not made with
PFOA, nor is PFOA added during the manufacture of these products. However, PFOA
is found in trace amounts in some fluorotelomer products as an unintended
by-product of the manufacturing process.
Alternatives
DuPont is committed to continuous improvement of our fluorotelomer manufacturing
processes and products even beyond the aggressive goals we have shared with the
EPA. New products are constantly being developed to reduce our environmental
"footprint", yet still maintain high levels of effectiveness and performance.
Success in this effort will depend on timely review and approvals for these new
products as well as marketplace acceptance. Assuming success in these areas, in
the coming decade, DuPont hopes to commercialize breakthrough products that
completely redefine fluorine chemistry applications in order to achieve
environmentally sustainable growth of this important product line.
To further meet these goals, DuPont announced in March 2006, a $20 million
investment at our Pascagoula, Mississippi First Chemical site that will help
DuPont meet our commitments to EPA by reducing the presence of PFOA in
fluorotelomer products. The project will reduce impurities from a chemical
intermediate used in surface protection products, resulting in higher quality,
more environmentally friendly products. The project will use a newly developed
technology to destroy trace amounts of PFOA and direct precursors at a key
intermediate step in the production. Water emissions from this operation will be
subjected to advanced environmental control technologies shown to be highly
effective for PFOA removal. We expect products to be in the marketplace
beginning in late 2006 and early 2007.
Litigation and Related Risks
Several shareholders have claimed DuPont faces significant financial risk as a
result of class action settlements, civil charges, and pending litigation
related to alleged health and environmental impacts of PFOA. While it cannot
predict the outcome of pending litigation or foreclose the possibility of
additional litigation, the Company believes its position is both factually and
legally supported.
Based on its understanding and evaluation of human health and toxicology
studies, the Company believes that the weight of evidence suggests that PFOA
exposure does not pose a health risk to the general public. To date, no human
health effects are known to be caused by PFOA even in workers who have
significantly higher exposure levels than the general population. With respect
to its potential obligation, under the Washington Works litigation settlement
announced in 2004 to fund a medical monitoring program, it is the responsibility
of the independent Science Panel established under the settlement to determine
whether a probable link exists between exposure to PFOA and human disease. The
Company is obligated to fund up to $235 million for a medical monitoring program
only if the Science Panel makes a finding that there is a probable link between
PFOA and one or more human diseases. Thus far, the Panel has not made any such
determination, whether definitive or otherwise. The Company believes it is
remote that the Science Panel will find any such probable link.
Moreover, if the Science Panel delivers a "No Probable Link" finding for all
human diseases, all personal injury claims of any Class member are released.
Stated another way, all claims for personal injury will be released except those
for any disease for which the Science Panel makes such a probable link finding.
Without knowing the Science Panel's conclusions, the Company cannot predict
whether it will incur any such losses, although it believes it is remote that
the Science Panel will find any such probable link.
With respect to the possibility of any potential additional environmental
litigation, it should be noted that, as indicated on the U.S. Environmental
Protection Agency website, "PFOA is very persistent in the environment and was
being found at very low levels both in the environment and in the blood of the
general U.S. population." Accordingly, the mere existence of PFOA in the
environment or near a DuPont facility--especially at low levels-- would not
support health or other damage claims.
With respect to product related litigation, it should be noted that studies
using U.S. Food & Drug Administration (FDA) standard testing methods have found
no detectable levels of PFOA in non-stick coatings used for cookware sold under
the Teflon(R) brand. The Danish Technical Institute and China Academy of
Inspection and Quarantine tested cookware with Teflon(R) non-stick coating and
did not detect PFOA. Although, according to an October 2005 published study
conducted by researchers at the FDA, PFOA was detected in minute quantities in
cookware using extreme and abusive test methods - methods that do not reflect
what happens when consumers use cookware. The FDA stated that the quantities of
PFOA detected through these extreme measures were too small to measure migration
of the PFOA out of the cookware.
The FDA has determined that non-stick coatings are acceptable for conventional
kitchen use. Also, in 2003 the U.S. Consumer Product Safety Commission rejected
a petition to require a label warning for non-stick coatings. And a
peer-reviewed study commissioned by DuPont and published in June 2005 concluded
that consumer products - including cookware, carpeting and apparel -
manufactured with DuPont's materials containing trace levels of PFOA are safe to
use. Commenting on PFOA as an essential processing aid in the manufacture of
fluoropolymers, the United States Environmental Protection Agency (EPA) has said
it "does not believe there is any reason for consumers to stop using any
consumer or industrial related products."
Accordingly, the Company does not believe that these product-related lawsuits
have any merit and, therefore, believes it is remote that it will incur material
losses.
Summary
Through the use of our science and technology in this manner, DuPont believes
that the EPA's goals to protect human health and the environment can be achieved
while continuing to provide fluoropolymer and fluorotelomer products to meet
customer needs and contribute to shareholder value.
This document contains forward-looking statements based on management's current
expectations, estimates and projections. These statements are not guarantees of
future performance and involve a number of risks, uncertainties and assumptions.
Many factors, including those discussed more fully in DuPont's 2005 annual
report on Form 10-K under Cautionary Statements and Risk Factors, could cause
results to differ materially from those stated. These factors include, but are
not limited to changes in the laws, regulations, and policies, including those
enacted to regulate the discharge of materials into or to otherwise protect the
environment, of countries in which the company does business; and changes in
current estimates of contingent liabilities, including litigation, which could
arise from, for example, a final adverse judgment, significant settlement or
changes in applicable law.