Most Small Chemical Plants Surveyed Not Y2K-Ready; Temporary Shutdown Urged to Minimize Chemical Accident Risks

Plants Surveyed in NJ, TX, CA, KS Found Unprepared

WASHINGTON, Oct. 21 -- A Texas A&M survey of small and medium-sized chemical plants found that only 13.5% are ready for Y2K, while nearly all are vulnerable to problems.

In light of this report, immediate action is needed to reduce the risk of Y2K related leaks, explosions and fires at chemical and petroleum plants, the nonprofit Center for Y2K and Society urged today.

The Center recommended that most chemical plants should be required to take a "safety holiday" immediately before and after January 1.

"Unless there are strong safety reasons not to, chemical plants and petroleum refineries should be required to shut down during the transition to the new year and slowly re-start their operations with skilled engineering and safety experts on-site," urged Norman L. Dean, executive director of the Center. Such safety holiday measures have already been announced by a number of facilities in both the U.S. and Canada.

The Center also recommended that the U.S. Environmental Protection Agency and the Occupational Safety and Health Administration should mandate immediate action by large chemical facilities to assess and minimize their Y2K risks.

In related action, Senators Robert F. Bennett (R-Utah), Chairman of the Senate Special Committee on the Year 2000 Technology Problem, and Christopher J. Dodd (D-Conn.), Committee Vice-Chair, today called upon EPA and Federal Emergency Management Agency to help prepare communities.

That survey found that:

* only 13.5% of small and medium sized firms involved in chemical, petroleum refining, and offshore petroleum activities had completed their Y2K preparations.

* 4.1% of the surveyed firms indicated a potential for a "catastrophic event."

* many, if not all, of the surveyed firms have a system which is vulnerable to Y2K failures.

* the surveyed firms are "in general, far-removed from technology advances, basic information and know-how, and access to technical and financial resources."

Over the past two months, several government reports have expressed concern about Y2K and chemical safety. A unanimous bipartisan Senate Committee report on September 22 noted that the consequence of a Y2K accident by a small company in the chemical industry "can be disastrous." Similarly, a statement released last month by the White House and U.S. Environmental Protection Agency acknowledged chemical "safety issues that could be created by multiple Y2K failures, or by external Y2K failures, especially those related to power." It also noted continuing risks in the ability of chemical enterprises "to safely use, store, and transport hazardous chemicals."

"The Texas A&M survey is a warning that small and medium-sized chemical plants face increased risks of explosions, leaks and fires resulting from Y2K," warned Dean. "Both federal and state regulators and chemical plant operators need to take immediate action to reduce the risk of Y2K-induced problems."

The Texas A&M Survey was based on telephone interviews by trained surveyors and involved facilities in New Jersey, California, Kansas, and Texas.