Chemical Companies Keep Lessons of Bhopal Spill Fresh
                    February 13, 2001

                    By SUSAN WARREN
                    Staff Reporter of THE WALL STREET JOURNAL

                    The company behind the horrific 1984 chemical spill in Bhopal, India, lost
                    its independence last week when Dow Chemical Co. completed its $7.39
                    billion purchase of Union Carbide Corp. But the legacy of Bhopal
                    continues to reverberate in the U.S.

                    The chemical leak that killed more than 3,000 and injured tens of
                    thousands more spurred a revolution in approaches to safety, pollution
                    and community relations that have made chemicals plants in the U.S.
                    more accessible and more accountable to their neighbors. New laws
                    forced plants to disclose safety and pollution data. And an army of
                    community activists won new powers.

                    Almost immediately after the catastrophe, the communities around
                    chemical plants began to scrutinize them with fear and suspicion, while
                    chemicals companies began to reassess their business. "Almost every
                    company took a step back and reviewed our whole situation to make
                    sure we were doing everything we could" to ensure plants were safe,
                    said Charles Van Black, vice president of the American Chemistry
                    Council.

                    Even now, Bhopal "has an indelible impact on everything we do," says
                    Mr. Van Black. "We can't undo it. But we learned immensely from it."

                    For all the industry's progress, the business of
                    making chemicals remains a dangerous one. Out
                    of 14,500 facilities filing government-required
                    risk-management plans, 1,145 reported 1,913
                    accidents between June 1994 and 1999. Those
                    accidents killed 33 workers, injured nearly 1,900 and sent 217 people
                    outside the plants to the hospital.

                    Companies say they learned their lessons, however. After Bhopal, Dow,
                    for instance, went into each of its plants and facilities to evaluate ways
                    to make equipment and processes safer. After indexing the toxic effects
                    and explosive potential of each chemical, the company changed the way
                    it handled some, such as using pipelines to transport some dangerous
                    chemicals instead of railcars.

                    At Bhopal, the large amount of chemicals stored at the plant
                    contributed to the magnitude of the disaster. In its own review, Dow
                    sought ways to reduce inventories so that chemicals are made only
                    when they are needed. Since the 1980s, Dow has cut in half the amount
                    of deadly chlorine it stores at its Freeport, Texas, facility, even as
                    production has increased.

                    Computer automation also has helped. Instead of standing next to a
                    giant chemical furnace to ignite explosive fuel, Dow workers now click a
                    button in a control room behind blast-proof doors. Recently when
                    supply problems threatened to cut off Dow's supply of nitrogen,
                    potentially forcing dangerous unplanned shutdowns, a NASA-like control
                    center orchestrated a careful production slowdown that cut usage
                    enough to keep all the plants running.

                                                The industry also pledged more
                                                openness with community and
                                                government groups, though making the
                                                change has been challenging.

                                                Lyondell Chemical Co. found its match
                                                in 1997 when LaNell Anderson, a
                                                56-year-old real-estate agent irate
                                                about pollution, stormed into a
                                                community meeting and demanded that
                                                the Houston chemical company allow
                                                local residents to review its
                                                manufacturing operations.

                                                Lyondell was reluctant at first, afraid
                                                that its openness could backfire with
                                                lawsuits or increased opposition. But
                                                Ms. Anderson, whose sweet smile and
                                                pungent manner earned her the
                                                nickname, "the garlic milkshake,"
                                                persisted, and Lyondell finally agreed.

                                                For three years, community members
                                                met monthly with Lyondell and its
                                                joint-venture chemical company,
                                                Equistar, for hours at a stretch and
                                                occasionally spent all day touring the
                                                plants searching for ways to reduce
                                                emissions. Progress was slow, and
                                                tempers flared. Ms. Anderson, who has
                                                been known to pull over next to
                                                chemical plants to take air samples,
                                                accused the company of stalling. The
                                                company wondered if it was really being
                                                heard. "I had some internal doubts as
                    to whether the community would have the patience and stamina to stick
                    to it," says Danny Flack, a Lyondell environmental engineer who steered
                    the community team through reams of complex information.

                    On one tour of a plant command station, the group zeroed in on a bank
                    of computers monitoring the production of benzene, a chemical known
                    as a carcinogen and one of the area's nastiest air-pollution offenders.
                    Ms. Anderson was especially curious about one unit that was producing
                    fewer emissions than another. On another tour, the group grew
                    concerned about a strong stench coming from a styrene plant, which
                    signaled a leak.

                    Over the following months, the team demanded information and
                    interviews with an assortment of Lyondell workers, from engineers to
                    plant operators. "We peppered them with questions like Perry Mason,"
                    recalls Ms. Anderson.

                    Eventually, the community group scratched the styrene fumes off its
                    to-do list, deciding there were better places the company's money could
                    be spent, such as reducing emissions of known carcinogens.

                    To plant manager Jim Bayer, that was a sign that the group grasped
                    the kind of tough decisions chemical-plant managers have to make.

                    In the end, the community gained a greater appreciation for the
                    complexity and challenges inside a chemical plant, says Ms. Anderson.
                    And, she adds, "we challenged them to think outside the box."

                    Still, even with the changes, many worry the industry will grow
                    complacent again. "Business, as you know, is a very competitive place,"
                    says Irv Rosenthal, a director of the Chemical Safety and Hazard
                    Investigation Board, created by Congress after Bhopal to review
                    industry safety. "There is a tendency, as with a new car, to drive it
                    faster because it's got new brakes and the roads are better."

                    Write to Susan Warren at susan.warren@wsj.com