Subject: International Paper -- Corporate Settlement Agreement

Scope of The Agreement:

The agreement effects the way in which OSHA will inspect ten specifically identified chlorine bleaching plants in paper and pulp mills. Within the ten mills, only the "bleach plant " including bleach processes--are affected by the agreement.

A three phase program will be implemented by International Paper:

1. International Paper will conduct safety and health program audits in the bleach plants. These audits will result in a list of conditions which must be corrected. The list will be put in writing and it will be available to OSHA on site.

2. International Paper will develop a timetable for correction of deficiencies, within 6 months after completion of the audit program. The action plan will be available to OSHA, on site.

3. Implementation of corrective action will be completed no later than thirty months after July 27, 1988. Records of implementation will be kept on site and they will be available to OSHA.

4. International Paper will maintain communication with the employees about the self-audit program in each of the affected mills.

OSHA has agreed to the following

1. OSHA will monitor the audit procedure, development of the action plan and their implementation, through on-site monitoring visits.

2. OSHA has agreed not to conduct general schedule inspections in the chlorine bleach portions of the pulp and paper mills covered by the audit program.

3. OSHA has agreed not to cite International Paper for any of the conditions identified in an audit, if they are being "responsibly addressed" as part of the audit program.

4. The provisions of section 15 of the Act regarding release of trade secret information and confidential business information apply.

The agreement includes one site in South Carolina, which has an 18(b) State Plan, but the state has indicated that it will not participate in the agreement. International Paper has agreed to include that plant, regardless of the state's participation.

The following Mills of International Paper and its subsidiaries shall be included in the audit program:

Mobile, Alabama Riverdale (Selma), Alabama Pine Bluff, Arkansas Bastrop, Louisiana Moss Point, Mississippi Natchez, Mississippi Ticonderoga, New York Erie, Pennsylvania Georgetown, South Carolina Texarkana, Texas

MEMORANDUM FOR:         ALL REGIONAL ADMINISTRATORS

THROUGH:                LEO CAREY,
                        Director Office of Field Programs

FROM:                   THOMAS J. SHEPICH,
                        Director Directorate of Compliance Programs

SUBJECT:                International Paper -- Corporate Wide Settlement
                        Agreement.

The purpose of this memorandum is to provide guidance relating to inspections in paper and pulp mills, for a limited number of international Paper sites.

Background

On July 27, 1988, OSHA and International Paper signed a corporate-wide settlement agreement providing for safety and health audits at chlorine bleaching plants in paper pulp mills. A copy of the agreement is attached, along with the OSHA press release explaining the agreement. Its highlights are summarized below.

Scope of the Agreement

The agreement affects the way in which OSHA will inspect ten specifically identified chlorine bleaching units of paper and pulp mills during the next thirty months. Inspections in other portions of the affected plants and other International Paper Mills are not affected in any way by this agreement.

Within the ten mills, only the "bleach plant"-- including bleach chemical unloading, bleach chemical preparation and bleach processes--are affected by the agreement. All other areas of these mills will be handled using ordinary inspection procedures. The agreement includes one cite in South Carolina, which has an 18 (b) State Plan, but the state has indicated that it will not participate in the agreement. International Paper has agreed to include that plant, regardless of the state's participation.

What International Paper Will Do

A three-phase program will be implemented:

1. International paper will conduct safety and health program audits in the bleach plants. These audits will result in a list of conditions which must be corrected. The list will be put in writing and it will be available to OSHA, on-site. Audits will be completed on all ten plants within 12 months (i.e., on or before July 27, 1989.)

2. International Paper will develop a timetable for correction of deficiencies, within 6 months after completion of the audit program. The action plan must include milestones for any corrective action which will take more than 3 months. The action plan will be available to OSHA, on site.

3. Implementation of corrective action will be completed no later than thirty months after July 27, 1989, i.e., on or before January 27, 1991. Implementation of corrective action is to take place on a reasonable schedule -- for example, items which may be easily corrected are expected to be done promptly, while corrections which may require complex engineering change and installation of major pieces of capital equipment may require the full 30 months. Records of implementation will be kept on-site and they will be available to OSHA.

4. International Paper will maintain communication with the employees about the self-audit program in each mill.

What OSHA Will Do

1. OSHA will monitor the audit procedure, development of action plans and their implementation, through on site monitoring visits.

2. OSHA has agreed not to conduct general schedule inspections in the chlorine bleach portions of pulp and paper mills covered by the audit program. General schedule inspections will continue to be made in all other areas these pulp and paper mills.

3. Complaint, fatality/catastrophe and referral inspections will continue to be done in all portions of these mills, including the areas covered by the agreement.

4. OSHA has agreed not to cite International Paper for any of the conditions identified in an audit, if they are being "responsibly addressed" as part of the audit program. This means that OSHA will not cite for conditions which have been identified and corrected, nor for conditions which have been identified and are covered by a reasonable abatement plan. OSHA may cite if the abatement plan is not followed, or if OSHA finds the plan is not developed to abate hazards as soon as feasibly possible.

5. The provisions of Section 15 of the Act regarding release of trade secret information and confidential business information apply, as usual.

Action by Regional Administrators and Area Directors.

1. Ensure that the contents of this agreement are read and understood by compliance officers who will be inspecting International Paper's paper and pulp mills.

2. Ensure that compliance officers review the citations issued in this case to become familiar with the types of hazards which were discovered at International Paper's Androscoggin Mill at Jay, Maine. This information is essential to effective monitoring of implementation of this agreement. The citations will be available through OCIS.

3. Ensure that, when general schedule inspections are made in mills affected by this agreement, compliance officers observe the special provisions of the agreement.

4. Develop a plan for monitoring of this agreement in each of the affected mills, taking account of available staff resources. Monitoring visits may -- but need not always be -- combined with inspections made for other purposes.

5. Re-emphasize to compliance officers and others handling case file material the importance of proper treatment of trade secrets and confidential business information.

6. Obtain clarification of provisions of the agreement through the the Directorate of Compliance Programs.