January 19, 2007

Mr. Greg Cochran, Director

Michigan Dioxin Initiative
The Dow Chemical Company
1790 Building
Midland, Michigan 48674

Dear Mr. Cochran:

SUBJECT: Tittabawassee River Interim Response Activities (IRAs)/Reach O Plan and Pilot
Corrective Action Plan (PCAP); The Dow Chemical Company (Dow);
MID 000 724 724

This letter is in response to your January 15, 2007, letter to the Michigan Department of
Environmental Quality (MDEQ), Waste and Hazardous Materials Division (WHMD), in which
you requested clarification of the “initiation point” for the IRA process, the proposed
approach for addressing Reach O and the Reach D area of the PCAP, and the opportunity
to discuss the MDEQ letter dated December 21, 2006. This letter is also in follow-up to our
meetings on January 17, 2007, during which preliminary discussions on these issues were
conducted.

Based upon the elevated contaminant levels that were reported by Dow in November 2006
and discussions during meetings held on October 26, 2006 (i.e., IRA and Priority 1 & 2
Planning), November 21, 2006 (i.e., data reporting and IRAs), and December 14, 2006 (i.e.,
IRAs and associated permits), it was the MDEQ’s understanding and expectation that Dow
intended to proceed expeditiously with corrective action and make use of mild weather
windows to begin conducting this work this winter. Even though Dow refers to this work as
pilot corrective action work, the MDEQ has consistently indicated that it considered such
action to be IRA work under the hazardous waste management facility operating license
(License) issued to Dow on June 12, 2003, pursuant to Part 111, Hazardous Waste
Management, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as
amended (Act 451).

During the November 21, 2006, GeoMorphTM working meeting, agreement was reached on
additional sampling that Dow would conduct to further delineate an in-channel deposit
located in the vicinity of river station 322+50. Although the MDEQ considers this date to be
the point at which IRA work commenced, in the interest of continuing progress to address
the needed work, we are willing to concede that this notification was not made in writing
until the letter dated December 21, 2006.

Based upon our discussion at the January 17, 2007, meetings, you indicated that Dow is
voluntarily conducting the work described in the PCAP. While that may be true, and the
MDEQ appreciates it when corrective action work is proactively conducted, this work does
Mr. Greg Cochran 2 January 19, 2007

not meet the U.S. Environmental Protection Agency (U.S. EPA) definition1 of voluntary
corrective action work and the MDEQ considers this IRA work to be an obligation under the
License. It should be noted that the MDEQ has formally required IRA work to be initiated at
other hazardous waste facilities for lesser releases (e.g., groundwater/surface water
interface exceedances under Part 201, Environmental Remediation, of Act 451).

As stated in the December 21, 2006, letter, the PCAP proposal is to be followed by detailed
work plans that specifically address each of the individual areas identified for pilot corrective
action/interim response. Recognizing the written notification date of December 21, 2006,
and specifications stated in Condition XI.G.1. of the License, these plans are to be
submitted no later than February 20, 2007. Based upon the meetings preceding the written
notification and the feedback provided by both the MDEQ and U.S. EPA at the January 17,
2007, meetings, in order to preserve momentum on this project, we would expect to receive
these plans sooner.

Also as discussed on January 17, 2007, in order to document work completed to date, the
MDEQ requests Dow to submit by January 22, 2007, a status update to the timetable
submitted in the December 20, 2006 (PCAP Attachment 2), that identifies:
• the work that has been initiated,
• progress made to date for each task that was to have started in December or
January (e.g., permit applications, bathymetry, access arrangements, etc.), and
• a summary of weather and river conditions and the associated risks to workers so
that work efforts in the context of such risks can be assessed.

Submittal of this information will fulfill the requirement for initial progress reporting as
contemplated in the December 21, 2006, letter and as we discussed during our follow-up
meeting on January 17, 2007. Subsequent IRA progress reporting shall be monthly
pursuant to Condition XI.G.6. of the License.

The MDEQ also expects the Remedial Investigation Work Plan for the Tittabawassee River
to be updated to include an action plan that describes how other similarly elevated or higher
in-channel and floodplain soil contaminant levels will be addressed as a matter of course.
Consideration must be given to:
• whether deposits are surficial or deep,
• whether deposits are located in active erosion scars,
• levels that trigger stepout/delineation/geomorphic and/or further chemical
characterization,
• levels that trigger ecological and/or human health risk,
• levels that result in advisory signage2, limiting access, or response activity, and
• prioritization of immediacy for action.

The MDEQ is prepared to make initial recommendations for the intervention levels and
conditions for these considerations in our next technical working meeting on January 24,
2007.

1
Voluntary corrective action - applies to interim status facilities ranked medium and low priority for
corrective action by the U.S. EPA National Corrective Action Priority System (NCAPS).
2
The MDEQ recognizes that significant IRA work was facilitated in December through Dow’s agreement
with installation of signage of the Dow property along Reach K pursuant to the escrow agreement.
Mr. Greg Cochran 3 January 19, 2007

With respect to the deposit of highly contaminated sediments and waste materials that have
been identified in Reach D (adjacent to the northeast shoreline at river station 55+00 and in
between two rows of sheet piling), the MDEQ indicated in the letter of December 21, 2006,
that our position was that this deposit should be prioritized for immediate removal and
disposal as a hazardous waste. Companies always have the option of managing such
material as hazardous waste to expedite corrective action. However, we recognize that
Dow does not necessarily consider this deposit to be hazardous waste and wishes to
conduct the characterization testing to demonstrate whether or not it is a hazardous waste.
We acknowledge that Dow has the ability to do so under the hazardous waste regulations
and request Dow to expeditiously submit the results to the MDEQ for review. The MDEQ
requests 24-hour advance notice to this sampling to have the opportunity to conduct split
sampling of this deposit.

The MDEQ, Land and Water Management Division (LWMD), remains available to conduct
preapplication meetings to facilitate permitting for these IRA/PCAP activities. To schedule a
meeting, please contact Mr. Brian Rudolph, LWMD, Saginaw Bay District Office, at
989-686-8025, Extension 8366, or rudolpbm@michigan.gov.

Should you or your staff have any questions concerning this letter, please contact Mr. Al
Taylor, Hazardous Waste Section, WHMD, at 517-335-4799 or taylorab@michigan.gov, or
you may contact me.

Sincerely,

George W. Bruchmann, Chief

Waste and Hazardous Materials Division
517-373-9523

cc: Mr. Ben Baker, Dow

Mr. David Gustafson, Dow
Mr. Philip Simon, ATS
Mr. Peter Simon, ATS
Ms. Lauri Gorton, CH2M Hill
Mr. Gerald Phillips, U.S. EPA, Region 5
Mr. Greg Rudloff, U.S. EPA, Region 5
Mr. Mark Lesinski, U.S. Army Corps of Engineers
Mr. Jim Sygo, Deputy Director, MDEQ
Ms. Elizabeth Browne, MDEQ
Ms. Liane Shekter Smith, MDEQ
Ms. De Montgomery, MDEQ
Mr. Steve Buda, MDEQ
Mr. Terry Walkington/Ms. Trisha Peters, MDEQ
Ms. Cheryl Howe, MDEQ
Dr. Deb MacKenzie-Taylor, MDEQ
Mr. Brian Rudolph, MDEQ
Mr. Al Taylor, MDEQ