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Nov. 8, 1997 sees Congressional Record publish “TRIBUTE TO THE LOUISIANA-PACIFIC CORP. FOR POSITIVE EFFORTS MADE IN IMPROVING THEIR ENVIRONMENTAL RECORD”

Volume 143, No. 156 covering the 1st Session of the 105th Congress (1997 - 1998) was published by the Congressional Record.

The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.

“TRIBUTE TO THE LOUISIANA-PACIFIC CORP. FOR POSITIVE EFFORTS MADE IN IMPROVING THEIR ENVIRONMENTAL RECORD” mentioning the Environmental Protection Agency was published in the Extensions of Remarks section on pages E2252-E2254 on Nov. 8, 1997.

The publication is reproduced in full below:

TRIBUTE TO THE LOUISIANA-PACIFIC CORP. FOR POSITIVE EFFORTS MADE IN

IMPROVING THEIR ENVIRONMENTAL RECORD

______

HON. SCOTT McINNIS

of colorado

in the house of representatives

Friday, November 7, 1997

Mr. McINNIS. Mr. Speaker, I rise today to offer congratulations to the Louisiana-Pacific Corp. for turning around its performance in the area of environmental compliance. The Louisiana-Pacific Corp. is one of the Nation's leading building products manufacturers and operates a facility in my district at Olathe, CO. The facility in Olathe manufactures oriented strand boards [OSB] which are high-quality structural panels used in the construction of homes and commercial buildings.

To be fair, this facility has had its share of environmental problems. However, due to an extraordinary effort by the workers in this facility along with a solid commitment from the management of the Louisiana-Pacific Corp., this facility has completed the hard work necessary to meet its environmental compliance responsibilities. This is evidenced by a surprise inspection of this facility by the Environmental Protection Agency which occurred in August 1997. The quotation from the inspection team speaks for itself:

The general housekeeping of the plant was uncommonly good and the plant operations were well organized. Records and Monitoring data were complete, quickly available and easy to understand. Training was thorough, updated regularly and well tracked. Contingency and safety strategies were in place and well understood by managers and staff. Staff knowledge and attention to environmental compliance was good in all categories.

The results of this inspection are a source of pride for all at Louisiana-Pacific and the Olathe OSB plant. The plant was the pilot plant for the roll-out of Louisiana-Pacific's Environmental Management System [EMS], which is now being introduced to all of Louisiana-

Pacific's OSB plants and will be introduced to all of Louisiana-

Pacific's business units in 1998.

Mr. Speaker, I would like to submit for the Record a portion of the U.S. Environmental Protection Agencies report regarding their inspection of Louisiana-Pacific's Loathe, CO OSB plant and once again say job well done to those at the Louisiana-Pacific Corp.

Preliminary Compliance Agreement Audit of Louisiana Pacific

Corporation--September 16, 1997

briefing with lpc ceo

The Audit Team met with Mr. Mark Suwyn, Chief Executive Officer (CEO), who provided a broad overview of what he has envisioned for LPC's environmental programs and culture changes instituted LPC as a result of the change in management since the Consent Decree and Agreement. The Audit Team viewed a video from series of videos that LPC has prepared for its employees. The video included an address from LPC's CEO to LPC's employees on, among other things, LPC's commitment to environmental laws and regulations. During the Audit Teams meeting with Mr. Suwyn, he also spoke of the Montrose Mill accomplishments in particular and the many changes that have been made at the mill as a result of the Consent Decree.

facts and finding from interviews

The following summarizes the questions asked and responses given by LPC personnel in reference to the Consent Decree and the Preliminary Compliance Agreement.

LPC Structure and Montrose Mill

LPC Structure and Montrose Mill

LPC restructured in 1996 into a geographical alignment and has been changed from Divisions to Regions. The Montrose Mill is no longer in the North Central Division. The North Central Division manager has been recently assigned to Portland Headquarters. He is currently stationed in Idaho. The Montrose Mill is part of the Northwest Region consisting of the States of Washington, Oregon, Idaho, Montana, Wyoming and Colorado. Mr. Richard Flather is the Regional Business Manager. Each LPC Region has separate positions for a Regional Business Manager, and a Environmental Manager.

LPC uses two organizational structures: one for the Business side and the second for environmental compliance purposes. LPC formed five Environmental Compliance Regions:

Northwest (EPA Regions 8 and 10),

North Central--East (EPA Regions 1 and 5), EPA Region 2 would be included; however, LPS's Environmental Compliance Regional chart does not list any facilities in this Region at the time of this report.

Western (EPA Region 9),

South West (EPA Regions 6 and 7), and

South East (Regions 3 and 4).

LPC Installation of Facilities Pollution Equipment

The Montrose Mill installed the Wet Electrostatic Preciptators (WEPS) in 1996 at a cost of approximately $1.5 million and it is being installed at all newer plants with some of the plants having 3 to 4 WEPS installed. The Regenerative Thermal Oxidizer (RTO) was installed at Montrose in 1996 at a cost of approximately $1.6 million. In total LPC has invested approximately $100 million in RTO's at eighteen (18) plants and RTO's will be installed at all new constructions and current plants under construction at the cost of $3.0 to $3.5 million per setup.

New Management Emphasizes and Environmental Program

After Ms. Elizabeth T. Smith was appointed Director, Environmental Affairs in 1993, she and her immediate staff

(four positions) trained the Plant Environmental Managers. The Plant Environmental Managers trained the assigned mill personnel. Ms. Smith meets quarterly with the Regional Business Managers and 20 to 30 Production Managers to ensure that the environmental programs are within compliance and meeting both the Consent Decree and the EPA Preliminary Compliance Agreement. Ms. Smith prepares a quarterly report regarding all environmental matters for the CEO and BOD.

Ms. Smith in conjunction with Plant Managers and in special cases with the Vice President, hired the Plant Environmental Managers or assigned a Plant Environmental Manager for each LPC plant/facility as directed in the Consent Decree. Ms. Smith stated that LPC is currently replacing the environmental managers with environmental professionals with three to four years of experience before appointments. There are currently four Regional Environmental Managers who report to Ms. Smith. They are:Northwest Region--Randy SandbergNorth Central/East Region--Sue SomersSouth West and South East Regions--Barb McGinessWestern Region--Dwayne Arino

The Audit Team reviewed the July 1997 Montrose mill monthly report submitted by the plant Environmental Manager, who has dual reporting to Ms. Smith and the Plant Manager. The reports are used as a monitoring tool and if there appears to be an environmental problem, Ms. Smith contacts the Plant Manager and/or Regional Business Manager. If the issues cannot be resolved in a short period of time and it is a major environmental issue, a Corrective Action Plan is put into effect.

To assist the Plant Manager in plant operations, he or she has a staff that consists of an Operations Manager, Supervisor of Production, and the Plant Environmental Manager. However, LPC's Plant Manager is totally responsible for environmental and production functions. The LPC Plant Manager is responsible for coordination and training of environmental and safety of plant personnel. Environmental and Safety functions are part of the LPC Plant Manager's position description.

Ms. Lundquist, VP for Operations, issued the

``Manufacturing--1997 Performance Plan'' that includes a performance evaluation base of 20% for Safety and 15% for Environment to all LPC Plant Managers. The background of the plan states ``Environmental compliance is a must be . . .'' and the objective is to support compliance goals and meet expectations of the Corporate Policy on Protection of the Environment and included as part of performance measures. Two important goals for 1997 are the Manufacturing Managers Tracking System for Correcting Environmental Compliance Issues by August 1997 and identifying best available technology for environmental compliance by December 1997.

In addition, in July 1997, LPC issued the LPC Environmental Management Charter, Standard Operating Procedures (SOP) for

``Reporting Suspected Violations of Law'' and Environmental Management Responsibilities matrix listing duties and responsibilities regarding area of concerns: policy, reporting, promote compliance, audits, compliance programs, staffing, training, handbook, meeting, records, records retention, permits, operations, spill, upsets and violations, curtailment, inspections, waste minimization/energy use, environmental contracts, budgeting, plant closure, sale/purchase/lease of land, corporate acquisitions/divestitures and Consent Decree for each of the corporate environments consisting of: Corporate Environment, Business Group Environment, Regional Environment, and Plant Environment.

Ms. Smith Explained the (SOP) for Shut Down of Plants/Facilities. Authority extends from the CEO, Director Environmental Affairs, Regional Environmental Managers, Plant Managers, Plant Environmental Manager. Any one of them can close a plant down. She stated however, the most important person who can shut the production down is a production employee if he or she is aware there is a problem. She stated in reality the production employees are the ones who alert management of an environmental problem or potential environmental problems.

LPC has developed an Environmental Affairs Team ``Center of Expertise'' for managers to contact with problems or questions. In addition, LPC installed an internal ``Intra-net and Environmental Internal WEB Page'' for LPC employees to utilize for information.

A training course was developed regarding Polychlorinated Biphenyls (PCBs) that explains what PCBs' are, health hazards, regulations, management responsibility, and how LPC will handle monitoring, engineering, emergencies, transportation and disposal of PCBs'.

In addition, LPC developed ``Doing Something About It . . .

'' for an August 14, 1997 training class at New Waverly Complex scheduled for reopening something in 1999 or 2000. It appears to be a very detailed course with a major array of environmental issues and compliance requirements in both English and Spanish.

standard operating procedures (sop) and management program changes

There was an in-depth discussion in this area. The following focuses on the major areas discussed. LPC has made major advances in SOP's for internal operations. They are currently in the process of updating their formal evaluation system of performance of Plant Managers to be rated on Production, Environmental, Health and Safety on an equal basis. LPC has developed an Environmental Management System

(EMS) for mill operations. The Montrose mill served as the pilot and cutting down the time to respond to problems has been contributed to the EMS process

Performance Plans, Handbooks, and SOP's

The Audit Team reviewed the 1997 Environmental Affairs Performance Plan, the Manager's Environmental Handbook, and various LPC SOP's.

The Audit Team reviewed the 1997 Environmental Affairs Performance Plan dated August 13, 1997, which illustrated the status of programs and projects: as complete, in progress, or initiated. In addition, the plan contained additional projects and efforts for 1997.

The Audit Team reviewed the Manager's Environmental Handbook, which was very detailed and covered the entire array of environmental acts and programs. This handbook has been distributed to each Plant Manager.

The Audit Team reviewed LPC's Audit Privileged & Confidential SOP policy written in 1993 and is still the current SOP. Ms. Smith stated that the LPC internal audit process, which proved to be a valuable tool, was a major factor in her efforts to get changes made through the CEO.

The newly issued SOP for Environmental Audit Corrective Action Process effective April 25, 1997, was reviewed and this SOP explained the basic processes as: Root Cause Analysis, Corrective Action, Monthly Review of Issue Status, Monthly Report to CEO and Issue Corrected. To bring the environmental issue to ``Closure'', the Legal Department, the Department of Environmental Affairs and the Plant Manager must review and agree on the status of the issue and agree on closure. Then, the Legal Department will issue a final report to Senior Management, Director of Environmental Affairs, the Product Line General Manager and the Plant Manager stating that the issue(s) has been resolved. Follow-up audits or inspections by regional or corporate environmental personnel may occur to confirm that an appropriate correction has been satisfactorily completed.

Interviews were held with Mr. Don Smith, Audit Manager, and Mr. Bill Hossman, Environmental Assessment Coordinator. Mr. Smith stated that LPC uses a standard audit program and does special audits for the legal department and gave risk assessments as an example for special audits. Environmental Audits started in 1993 for specific risk assessments and has been expanded from specific risk to include financial and operations. The LPC audit team gives a two weeks notice and has an entrance and exit meeting with the plant manager. The Legal Department makes an evaluation of the audit report. LPC has 10 to 15 plants plus acquisitions that need audits. They have completed 70% of their audits with a target of finishing remaining audits by end of 1998. As a rule of thumb, each plant is audited every three years. The LPC auditor viewed closed plants as a significant risk and cite the PCB problems at closed plants as an example. Mr. Smith responded to the question, ``Were there common environmental problems at plants that led to changes to SOP's?''. He stated, ``Yes.''

REQUIRED PUBLISHED LETTERS AND/OR MANUALS:

LPC Code of Conduct

LPC issued the Code of Conduct instituted by the new CEO in April 1996 and distributed it to all employees by mail in April 1996. LPC, in addition, printed a Spanish version of the LPC Code of Conduct. Prior to that date there was no official LPC Code of Conduct publication.

Environmental Handbook

Mr. Harry Merlo, CEO transmitted by mail in January 1994 to all employees a copy of the LPC ``Environmental Handbook for Employees''. The letter in addition enclosed a copy of the

``Corporate Policy on Protection of the Environment'' adopted by the BOD in July, 1993.

Manager Environmental Handbook

LPC issued under CEO Harry Merlo the original ``Manager Environmental Handbook'' on February 24, 1995. A revised version dated May 1997 was distributed to managers in May 1997. The latest revision contains four (4) training modules as follows: Management Overview, Waste, Water, and Air.

In addition, the handbook includes a Questionnaire to assist in the goal of identifying environmental issues that will be addressed in the next 5 years by recommending that Plant Managers utilize the development of Corrective Action Plans as the ``Way to Go''.

____________________

SOURCE: Congressional Record Vol. 143, No. 156