TSCA-HQ-2004-0016, et. al. Fourth Quarter 2006 Progress Report January 20, 2007

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### 4th Quarter 2006 Progress Report October 1, 2006 to December 31, 2006 Biodegradation Supplemental En vironmental Project (SEP A)

Pursuant to Section V.l.a. of the SEP, DuPont is re quired to submit a quarterly report within thirty days after the end of each calendar-year quarter. This report which is due January 30, 2006 satisfies said requirement.

1. Description of Activities Undertaken

A. Progress Toward a Purification Procedure Agreement

After much negotiation and engaging discussion between EPA and DuPont from March to August, a path forward agreement was finalized by the EPA a nd communicated to DuPont on August 23, 2006 (email from Ilana Saltzbart, 08/23/2006, 4:46 PM) with at tachment entitled “Final Purification Path Forward Agreement 8-23-06.pdf. Along with the path forwar d agreement, EPA proposed a new Purification Procedural Agreement deadline of November 27, 2006.

From August to October, DuPont worked with Exyg en Research to develop methods, establish protocol and perform interlaboratory equivalency. A prog ress report outlining the results of the equivalency studies was submitted to EPA on October 24, 2006 (CD-2006-28).

On November 21, 2006, D upont, EPA and Exygen met to discuss the results of the first progress report submitted on October 24, 2006. EPA requested via em ail (Ilana Saltzbart, 11/22/2006 04:09 PM) a path forward proposal describing the validation studies th at remain before beginning the control and two additional sparging experiments. This email included particular constraints of the additional validation studies (see attached email, Ilana Saltzbart, 11/22 /2006 04:09 PM). On November 28, 2006, DuPont received a path forward proposal from Exygen. This proposal was reviewed by DuPont and submitted to EPA via email on November 30, 2006 (Email to Ilan a Saltzbart, November 30, 2006 04:43 PM). The Exygen path forward Proposal is attached and wa s approved by EPA via email on December 08, 2006 (Ilana Saltzbart, December 08, 2006 02:09 PM). Th e EPA approval came with additional requirements for Exygen. These additional requirements were pass ed on to Exygen, accepted by Exygen and EPA was notified that Exygen agreed to and accepted the addi tional requirements. The additional experimental requirements requested by EPA, required approval fo r $2500 in additional funding to Exygen. EPA approved the additional costs via email (see attached email from Ilana Saltzbart, 12.13.2006 05:35 PM). Exygen is currently working to complete th e remaining validation and control analyses.

November 08, 2006, DuPont submitted a fifth request for extension for agreement for the procedures for purification of the fluorotelomer commercial products . On November 15, 2006, EPA granted DuPont’s request and extended the deadline to March 7, 2006 to receive data and March 30, 2006 to reach final agreement by both parties (see attached email Ilana Saltzbart, 11/15/2006 04:16 PM).

B. Panel Administrator Contract Negotiation

On November 3, 2006 a second draft version of the Panel Administrator Contract was submitted to the EPA (CD-2006-29). EPA responded on November 22, 2006 (Ilana Saltzbart, 11/22/06, 3:49 PM) with additional changes to the Panel Administrator Contr act documents. Those changes were reviewed with DuPont and ILSI legal. The Panel Administrator contracts were submitted a third time to EPA forTSCA-HQ-2004-0016, et. al. Fourth Quarter 2006 Progress Report January 20, 2007

Page 2 of 3 approval on November 27, 2006 (CD-2006-31). EPA ha d additional changes and the Panel Administrator

contracts were resubmitted a fourth time on Decemb er 22, 2006 (CD-2006-32P a nd CD-2006-32CBI). An informal deadline was set by Ilana Saltzbart for the EPA to review and respond to the December 22, 2006 submission by January 05, 2007.

C. Submission of Third Quarter 2006 Progress Report Describing Progress from July 01, 2005 to September 30, 2006

Section V.I.a. of the CAFO provides that “Within thir ty days after the end of each calendar-year quarter (i.e., by April 30, July 31, October 30 and Janua ry 30) after execution of this Consent Agreement pursuant to Paragraph IX.9., respondent shall subm it in writing a quarterly report for the preceding quarter that shall include a discussion of the Re spondent’s progress in satisfying its obligations in connection with each SEP including a minimum, a narrative description of activities undertaken, compliance with the schedules or milestones set forth in the applicable appendix, and a summary of costs incurred since the previous report.”

On October 23, 2006, a third quarter 2006 progress repor t covering the time period from July 01, 2005 to September 30, 2006 was submitte d to the EPA (CD-2006-27).

D. Biodegradation and Characterization RFPs

On December 28, 2006, EPA sent via email (see atta ched email from Ilana Saltzbart, 12/28/2006, 01:00 PM) a request for DuPont to resubmit the Biodegradation and Analytical Requests for Proposals. The resubmission will include review, modification and in corporation of the language as it was negotiated in the Panel Administrator contracts where applicable . The deadline for this submission was set for February 01, 2007.

2. Pending Issues and Document Reviews

A. Requests for Proposals to the EPA for Approval

Per request of EPA, DuPont is currently modifying the Biodegradation and Analytical Requests for Proposal. The revised RFPs will be submitted to EPA on or before February 01, 2007.

B. Panel Administrator Contract Status

The final version of the Panel Administrator Contract s as they were negotiated between ILSI, DuPont and EPA was submitted to EPA on December 22, 2006 (C D-2006-32P and 32CBI). The Panel Administrator contract documents pending approva l by EPA which is tentatively scheduled for January 05, 2007.

C. Agreement on the Mabury Method of Purification

The new deadline for agreement on a purification procedure is March 30, 2007.



### 3. Compliance with Schedules or Milestones

This section outlines the various requests for extensi on granted between October 01, 2006 and December 31, 2006. All deadlines in the fourth quarter were met. Pending deadlines and open issues are described

below.TSCA-HQ-2004-0016, et. al. Fourth Quarter 2006 Progress Report January 20, 2007

Page 3 of 3 A. Purification Procedure

The deadline to reach agreement on the purification procedure was extended a fifth time on November 15, 2006. The new deadline is March 30, 2007.

B. Panel Administrator Contract Submission to the EPA

EPA approval for the Panel Administrator Contracts is anticipated to be January 05, 2007. Once DuPont received EPA approval from EPA, DuPont would within 7 days present the contract documents to ILSI.

C. Quarterly Progress Reports

On October 23, 2006, the third quarter 2006 progress re port covering the time period from July 1, 2006 to September 30, 2006 was subm itted to the EPA (CD-2006-27).

D. Pending Deadline Summary

All deadlines were met in the fourth quarter of 2006. The two pending deadlines are:

1) March 30, 2007 to reach Agreement of the Purification Method, and 2) February 06, 2007 for resubmission of th e Biodegradation and Analytical RFPs.



### 4. Summary of Costs Incurred

DuPont has established a system to capture all costs incurred for this SEP. Cost is broken down into two accounts, the “SEP Biodegradation Main” account (VZ789011724) and the “SEP Biodegradation Synthesis” account (VZ78101073). The SEP Biodegrada tion Main account is used for all eligible SEP costs while the SEP Biodegradatio n Synthesis account is used for DuPont costs resulting from preparation, purification, synthesis and characteriz ation of the test substances as supplied to the SEP.

The cost of the SEP from October 01, 2006 to Decemb er 31, 2006 as it was accounted on cost ledger is

shown in Attachment A. The table shows the co sts from both accounts and breaks the cost distribution down into salaries, overheads, travel, operating suppli es and analytical costs. The year to date (YTD) costs are $279,007 and $122,812 for the SEP Biodegrad ation Main and the SEP Biodegradation Synthesis accounts, respectively. A negative number signifies a cost correction due to an account error in the previous month.

The Agilent Costs to perform the analysis required by the two additional experiments will total per quote Q2319E to $164,800 (min) to $204,400 (max). A ra nge of cost was quoted to allow for flexibility associated with the range of experiments that may be required. Exygen began analyses in September 2006, a fee of $82,833 was charged in September to cover the method development and validation costs. In December, Exygen charged an additional $41,417 to cover the equivalency studies. Going forward the remaining Exygen costs will be changed upon services rendere d. It is anticipated that the remainder of the costs associated with the Exygen Research quot e will be spent in the first quarter of 2007.

5. Attachments

Title Number of Pages Attachment A. SEP Cost Summary for 2006 1

Attachment B. Email correspondance described in this report 40