Dow Frustrated By EPA Decision

Midland, MI .- The Dow Chemical Company today expressed frustration and disappointment after learning that the Environmental Protection Agency, Region V Administrator has abruptly terminated negotiations of an unprecedented Order to address the historic furan and dioxin situation in and along the Tittabawassee River, the Saginaw River and the Saginaw Bay. Agreement on a plan going forward would have resulted in dramatically speeding progress toward resolving the situation.

Commenting on EPA’s decision, David Kepler, Dow’s senior vice president said, “We cannot understand the Regional Administrator’s decision to terminate negotiations so abruptly. We were prepared to commit immense human and financial resources on early, comprehensive actions, all in full compliance with EPA guidance and regulations. We reject Administrator Gade’s characterization in EPA’s press release, and are frustrated that EPA chose to terminate discussions the very day we had committed to submit a follow-up offer. This was a real opportunity to actually accelerate resolving the situation; now we’re faced with additional barriers and delays.”

Dow remains committed to clearly communicating and working with our community, EPA, Michigan Department of Environmental Quality (MDEQ) and other key stakeholders in this process.

Dow received notification from EPA on October 10, 2007 that it had a limited option to negotiate with the Agency on a ‘settlement to conduct an investigation, a study and interim response actions’ for historic furan and dioxin contamination in the area immediately upstream of Dow’s Midland manufacturing site and extending downstream in and along the Tittabawassee River to the Saginaw River, its floodplains and portions of the Saginaw Bay. Dow promptly accepted EPA’s offer and was provided a 60-day time period to negotiate and submit its good faith offer. That time period was later extended following the submission of the Good Faith Offer.

Dow submitted its “good faith” proposal on December 10, following negotiation discussions with officials from Region V EPA and the MDEQ. Following this submission, the EPA Regional Administrator extended negotiations an additional 30 days. Dow had committed to EPA that it would submit in writing a modified proposal to EPA today, but was notified before that offer was submitted that the discussions had been terminated.

About Dow

Dow is a diversified chemical company that harnesses the power of innovation, science and technology to constantly improve what is essential to human progress. The Company offers a broad range of products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $49 billion and employs 43,000 people worldwide. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

For Editorial Information:

John C. Musser
The Dow Chemical Company
(989) 636-5663 (O)