however, should be metal and shou'd be washed thoroughly with water after

use.

4. Sludge Spreading

The s.udge should be spread with hoes, rakes or shovels, as uniformly as possible, and to a thickness of about three inches; even thinner spreading is desirable. The spreading should be accomplished as the job progresses to prevent the necessity of men working within the sludge area.

5. Protective Equipment.

Persons handiing and spreading sludge should be dressed in special clothing as recommended for tank cleaning. Masks are not necessary unless there is insufficient air movement to prevent vapors of any kind from being detected by odor at face level. In case of doubt, it is always possible to take a reading with a lead-in-air analyzer at the breathing level.

6. Sludge Sampling

After the s.udge is spread a representative sample should be taken and analyzed. Make certain that the sample is representative by taking a spoonful at a time from at least twelve different locations. Continue to sample at not less than one-month intervals until the result of the analysis is 20 ppm or less. At that time the sludge may be treated as any non-toxic waste material. Special signs and fences may then be removed.

The case of the 11 horses grazing near a new oil refinery, who subsequently died, causes us great concern. What about the men who work in the refinery?

[From the New York Times Mar. 8, 1970]

HORSES DIE OF LEAD POISONING

Davis, Calif. (March 7 (UPI)-Scientists at the University of California say lead poisoning was a "contributing factor" in the deaths of 11 horses grazing near an oil refinery in Benecia. But they say the source of the lead has not been determined.

[From The Oil and Gas Journal, Apr. 1, 1970]

REFINERS FACE OLD DILEMMA OF QUALITY VERSUS ECONOMY

Refinery developments over the last year or so raise the nagging question : Just how far can management go with economy before quality suffers and planned savings go down the drain?

The oil industry has made household gods of economy, cost cutting, and efficiency in recent years. Oil management has won wide respect in the business world-and earned more profits-with this tighter planning.

The trend has been notable in the processing area. Specifications for new refining or petrochemical plants have been stripped of all "gold plate." Designs have stressed function with a goal of high efficiency and lowest possible original cost.

This message was picked up ultimately by contractors and equipment makers who serve the industry. They also adjusted to the economy approach. The early savings in capital and operating costs were substantial.

What's happened in processing over the last few months, however, is startling. New plants and units have been plagued with an assortment of start-up troubles, both minor and major. Some encountered vessel failure or equipment breakdown. Many strained to get new units up to design operating levels. A few wou'dn't even run. The industry also has been embarrassed with an unusual series of upsets even after plants finally went on stream.

Heavy repair costs and-more important-loss of production for long periods resulting from the troubles have run into the millions.

Explanations for the troub'es are endless. They usually center on faulty equipment, substandard materials, poor workmanship, or lack of inspection.

There's no doublt that lack of quality in these areas has come home to plague contractors and equipment makers and embarrass them with their customers. But oil management also must share some of the blame.

Plant designs have been stripped too severely. The stress on economy has reduced flexibility of operation to the vanishing point.

The concept of big process units, for example, gives high volume production of fuels and petrochemica.s at low unit costs. But if anything goes seriously wrong, the entire plant has to shut down.

Inventories of vital spare parts have been cut out or trimmed so sharply that entire units have been shut down because a pidd.ing piece of equipment is not immediately available.

Companies have dickered so sharply with contractors and equipment makers over bids that these people also have had to trim their services and turn out items as economically as possible.

This situation has the earmark of a vicious circle in which quality of plant and equipment ultimately suffer. It's time management restores a measure of quality. To do otherwise will lead only to loss of the industry's vaunted efficiency and to unsafe plant operations.

[From The Oil And Gas Journal, July 14, 1970]

THE INDUSTRY PREPARES FOR "CATASTROPHIES" WHILE TRYING TO DELUDE THE PUBLIC ABOUT THE SAFETY OF THE INDUSTRY

OIL-OWNED INSURANCE FIRM FOR CATASTROPHIES IN WORKS

The U.S. oil industry is well along toward achieving the goal of owning its own insurance company providing "catastrophe" protection against pollution, property damage, and protection against blowouts.

A proposal for an industry-operated firm which would assist oil companies in funding losses is being advanced by the insurance committee of the American Petroleum Institute's division of finance and accounting.

The plan follows a recent drastic revision of rates and some coverage exclusions by syndicates and underwriters affiliated with Lloyds of London (OGJ, May 11, p. 36).

Pollution liability coverage is presently unobtainable on the conventional insurance market.

A spokesman for the API committee said the plan is intended to serve as a "funding mechanism" for risks presently uninsurable or insurable at costs which might be considered prohibitive.

Member companies would be allowed 10 years in which to pay back funds advanced by the insurance company to cover losses.

The plan would be similar to one established by tanker owners to provide coverage against pollution.

Coverage would be available for terminals, refineries, drilling and production facilities, and pipelines. It would cover damages from spills, seeps, and contamination, costs of wild-well control and other physical damage, both onshore and offshore, foreign and domestic.

Under the proposal, oil firms would participate in a capital stock insurance company based in Bermuda. Voting stock would be available at $10,000/share. A board of directors wou'd serve on a rotating basis.

The size of a member's assets would determine deductibles.

A company with $4 million or less in assets would absorb a $1-million deductible; $4-15 billion in assets a $4-million deductible; and firms with $15 billion or more wou'd have a $10-million deductible.

Individual firms could elect whether to self-insure the deductible or price it on the commercial market.

API-member companies are presently being advised of the plan. They are asked to respond with "expressions of interest" by Aug. 1. Program backers envision coverage being available by Jan. 1, 1971, with subscription of at least 11 oil firms.

Senator MUSKIE. Our next witness, Dr. Marianna Cherry, from Mount Desert Island League of Women Voters.

Dr. Cherry, it is a pleasure to welcome you this afternoon.

STATEMENT OF DR. MARIANNA CHERRY, MOUNT DESERT ISLAND LEAGUE OF WOMEN VOTERS, BAR HARBOR, MAINE

Dr. CHERRY. My name is Marianna Cherry.* I am making this statement prepared by the Mount Desert Island League of Women Voters for the League of Women Voters of Maine. We appreciate this opportunty to share with you our thinking concerning the impact of industrial oil and petrochemical developments on the coast of Maine and the people who live and work here.

The League of Women Voters of Maine, representing 700 women, is most concerned over the prospect of extensive oil development on the coast. Our position favors legislation to prevent the damaging of the environmental quality of the State including coastal waters by uncontrolled industrial development. Unfortunately this protection is not being met in the State at present since a consortium of oil companies, some of whom had formerly assured us of their interest in preserving the environment of Maine, has filed suit against our oil conveyance law. In effect this means our efforts to control the dangers of oil are now in abeyance for months or even years. We also find the one-half cent tax per barrel on oil a very poor excuse since the companies have already announced that such a tax would be passed on to the consumer.

The league on Mount Desert Island draws its membership from the four towns on the island having a permanent population of about 8,000; the population increases to five times that size during the summer season. The permanent residents of the island are dependent primarily on the recreation industry, lobstering, boat building, light construction, and a scientific laboratory for their livelihood. The island contains the major segment of the Acadia National Park which has over 40 miles of salt water shore open to the public. This is probably about half of the shore so available along the coast of Maine. It is the only national park on the eastern seaboard from the Canadian boundary to the Everglades National Park in Florida.

Mount Desert Island is about 45 miles from Machiasport by sea. Because of the direction of the ocean currents oil spills at a number of places in the Gulf of Maine near Machiasport would reach our coast and inshore waters. This is of grave concern to us as well as to our neighbors to the east and west.

The effects of oil pollution on marine ecology will no doubt be fully developed by the biologists and conservationists appearing before you. We shall only note them briefly. Ample evidence has accumulated to show that either a major spill or the buildup from smaller ones could result in the biological death of the Gulf of Maine within a few years.

There has been a great deal of publicity concerning the destruction of sea birds and animals by oil spills. Tragic and offensive as these losses are, the potential loss of less visible forms of sea life is perhaps even more grave. A February, 1969 study of the waters in the Santa Barbara channel revealed that the number of microscopic plants and animals, which are the beginning of the long complicated marine food chain, were significantly reduced from counts taken only

Dr. Cherry is a member of the environmental resources committee of both the state and the MDI Leagues.

a month before. (Environment, Nov. 1969, p. 6.) Laboratory studies done by the Maine Seas and Shore Fisheries Department showed 100 percent mortality in lobster larvae and 40 percent mortality of sardine size herring from the thinnest possible film of jet fuel on the water of the tanks. (Ronald Green before the Maine Legislative Research Committe on coastal conveyance of petroleum, Sept. 29, 1969.) Another study in California showed that life in the upper intertidal zone was virtually eliminated by an oil slick. (Env., op. cit., p. 8.) Two months after a relatively small spill near West Bath, Maine, 40 to 50 percent of the clams in the area had died. The marine worm industry, worth about $1.5 million statewide in Maine, has been virtually eliminated by oil spills in the Searsport and Stockton Springs areas. (NRC, Dec. 30, 1969.) A spill near West Falmouth, Mass., killed mature lobsters. (Dr. Max Blumer, Woods Hole Oceanographic Institute, Feb. 25, 1970) Volumes of additional evidence have accumulated showing the fatal results of oil pollution on marine life.

Even where the effects of the pollution are not fatal it frequently destroys the usefulness to men of marine species. The first damage to lobsters and shellfish is the accumulation of the oily materials in their tissue making them unfit for human consumption. In extreme cases this unpalatability has persisted for two years after contamination. (NRC, op. cit.) It can result from minute quantities of oil pollution. A study done in Casco Bay by biologists from Bates College demonstrated that cleanup with emulsifiers can be as fatal as the oil pollution itself. (SBA Newsletter, Oct. 1969.) Other studies indicate the same fatalities not only to the surface and littoral life of the sea but to forms living in other levels of the water.

Such evidence of the devastating effects of oil pollution have direct and vital meaning for the 15,000 Maine people dependent in one way or another on the harvesting of marine products and for the uncounted additional thousands dependent on the recreation and travel industry along the coast. (State O' Maine Facts, Rockland Courier Gazette, 1970.)

In 1966 fish landings in Hancock County netted $389,000 and in Washington County over $380,000. Lobster landings during the same year brought almost $4 million to Hancock County fishermen and over $2 million to Washington County lobstermen. Another $1.2 million was added for shellfish for a total of almost $8 million for these products alone. These figures do not include the additional income earned from processing and marketing. (Maine Handbook, p. 435.) In 1969 242 million pounds of shrimp, selling for 19 cents raw and 26 cents per pound cooked, were landed in Maine. There were over 360 shrimp boats in the State in 1970 and 75 buyers and processors. (Bangor Daily News, March 28-29, 1970.) The lobster fleet of Hancock County alone numbers between 150 to 180 boats with seven major dealers. (Bar Harbor Times, Apr. 2, 1970.) The average investment in boat and gear for each of these fishermen is $15,000.

Mount Desert Island is a major center for the State's vacation travel industry which brought $332 million into Maine in 1966. (Maine Handbook, 1968, p. 154.) more than a 30 percent increase over the same type of income for 1956. On Mount Desert Island nearly half of the more than $77 million property evaluation is owned by non-residents; to this must be added the several million dollars

invested by residents in tourist facilities. The tourist industry has been increasing steadily. In 1968 there were 2.5 million visitors to the island. Taxable sales and transactions in our area of the coast were almost $26 million during the tourist season last year, nearly 9 percent more than for the preceding season. In Bar Harbor transactions of the same kind for August 1969 were more than eight times greater than in one of the winter months. (Maine state tax bureau.)

People from congested areas come to MDI for the peace of its quiet. mountains and the beauty of its bays and shores. Oil slicks and oilcoated shores could deal a death blow to the vacation and travel economy of the island.

We are not alone in our deep concern for the effects of major industrial oil developments downeast. A poll taken among Hancock County lobstermen earlier this year showed that they are almost 100 percent opposed to such developments. (BHT op. cit.) The Bar Harbor Chamber of Commerce called for a moratorium on all heavy industrial development along the coast during the last session of the legislature (copy attached), and the Bar Harbor town council recently declared that the risks of further oil handling and refining on the Maine coast to the travel and fishing industries are too great to chance. (Ells. Amer., June 8, 1970, copy attached.) You will hear from other local spokesmen today or tomorrow.

The towns on MDI have for several years been concerned over abating water pollution for our own use of marine resources and the health and comfort of our visitors. Towns on the island are committed to spend nearly $1.3 million for their share in construction of sewage treatment facilities to clean up our coastal waters. MDI voted overwhelmingly "yes" on a referendum providing $50 million of State money for prefunding of construction pending the receipt of Federal funds, a significant decision during a year when a number of other bond issues were voted down.

Major industrial developments cannot be discussed outside the economic framework of a depressed area. Average family incomes in Washington County are appalling and are little better in Hancock County. In the former community over 58 percent of the families have incomes under $5,000 per year, in the latter over 50 percent. This means hungry people who are poorly clad and housed, to say nothing of major unmet needs in health and education. Solutions must be found for this human deprivation.

We are not convinced, however, that major oil and petrochemical developments downeast will solve this economic problem. Because of the nature of these industries, there is considerable doubt that many of the unemployed and underemployed people of this part of the coast will find jobs in them. The spillover benefits in the trades and services is an imponderable for which there are no responsible estimates. To these doubts must be added the inevitable economic losses caused by destruction of the present marine and travel industries. There are absolutely no guarantees that material economic gains will accrue to the people of Washington and Hancock Counties. There is definite evidence that there will be material losses.

Some economic alternatives have been suggested. Most of these are fully compatible with the character of the Maine coast. For example, the marine research director of the State Sea and Shore Fisheries