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THANKS, DONNA-- & I KNOW EXACTLY WHAT YOU MEAN!

TAKE GOOD CARE, & CHIN UP--IT HAS TO GET BETTER, RIGHT?

V.

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Re: [] Re:original press release--Scotia Price Cruise

Lines Shut Down due to Mold

RLLIPSEY87@... wrote:FOR IMMEDIATE RELEASE

April 6, 2005

Scotia Prince Cruises Forced To Cancel 2005 Season

Due To Continued Mold Contamination In

International Marine Terminal

PORTLAND, MAINE â? " Scotia Prince Cruises has announced that the entire 2005

season is canceled due to continued mold contamination at the City of

Portlandâ?Ts

International Marine Terminal (IMT).

The EPAâ?Ts Center for Disease Controlâ?Ts National Institute for

Occupational

Safety and Health (NIOSH) has conducted two separate evaluations of the IMT

in

the past month. Additionally Scotia Prince Cruisesâ?T expert toxicologist,

Dr.

Lipsey, has examined the building in coordination with NIOSH and

again

on April 1, 2005, a date the City of Portland had repeatedly committed to

for

delivery of safe and appropriate facilities.

In Dr Lipseyâ?Ts report on the status of the IMT as of April 1, 2005, he

states:

â?oTherefore, I do not feel the building is safe for occupancy and will only

get worse until the procedure is done properly - a procedure which I doubt

is

possible in this building - as NIOSH said - it is not fit for human

habitation

and never was. This old warehouse is almost 100 years old and had railroad

cars

in â?¦ It was never intended to be used as offices for humans. In

conclusion,

after some 7 months under the City supervised remediation, this building is

as

flawed as it was in August 2004.â?

â?oIt is clear the IMT has not been safely remediatedâ?, states

Hudson,

chairman, Scotia Prince Cruises. â?oMoreover, as Dr. Lipsey underlines,

this

is seven months after the City, in direct contradiction to our experts, said

that (A) the public areas were safe; (B) SPC was â?ooverreactingâ? in

evacuating

our personnel and passengers; © the remediation (of the so-called

â?osafeâ?

areas) would take (1) a week and then (2) would be complete by December 22

and

then (3) by January 26, then (4) March 25, and then (5) would absolutely,

definitely be completed by April 1.â?

â?oIt is self evident that we cannot subject our employees or passengers to

an

unsafe environment. As such we are forced to cancel the 2005 season due to

the

Cityâ?Ts failure to meet its leasehold obligations to provide Scotia Prince

Cruises with safe and appropriate facilities from which to operate.â?

For further information please see the attached letter from Hudson

to

the employees of Scotia Prince Cruises and the accompanying time line of

events.

- 30 -

Contact:

Mark Hudson

SVP Marketing and Finance

Scotia Prince Cruises

T: 905-526-6101; E: mhudson@...

April 5, 2004

Dear Colleagues

I know that you have all been anxiously waiting for April 1 test results

from

the IMT so let me get right to the point.

In early 2005 the City informed us the IMT was ready for use but refused to

certify it as safe and refused to allow our experts access for testing.

On March 9/10, 2005 the National Institute for Occupational Safety and

Health

(NIOSH) performed a Health Hazard Evaluation of the IMT. We took this

opportunity to have our expert toxicologist attend and take samples. The

NIOSH public

report will not be issued for some weeks/months but it is clear from (a)

their inspection and assessment; (B) the NIOSH mold samples; © comments by

the

City â?oremediationâ? contractor; and (d) the samples taken by Dr.

Lipsey

our expert toxicologist - that the building had not been properly remediated

and was not safe.

On March 29, 2005 NIOSH returned for additional evaluation of the federal

areas and for medical interviews with the federal employees.

On March 30, 2005 the federal agencies informed the City they were

evacuating

the IMT.

On April 1, 2005 the federal agencies left the IMT.

Also on April 1, 2005 the City of Portland allowed us access to the

remaining

portions of the IMT and we asked Dr. Lipsey to travel from Florida again to

re-evaluate the building. His April 1 evaluation shows that the City had

still

taken no steps to prevent water incursion notwithstanding the Cityâ?Ts full

knowledge that the building cannot be made safe until after it has been made

watertight. As you know by now, the first step in remediating a building is

to

stop the water incursion. As a result mold will re-grow in the IMT. By

April 1

all of the areas of contamination had been rendered inaccessible by the City

(e.g. with new drywall) so that Dr. Lipsey could only take air samples which

are ineffective in such circumstances. The samples he took on March 10,

2005

did prove the continuing presence of high levels of toxic molds â? " as did

the

NIOSH samples and apparently those taken by the City.

Additionally, the second floor office areas have not been remediated and

they

are known to contain high levels of mold contamination. The City proposes

to

leave these highly contaminated areas intact without remediation. The City

says it will seal off the areas but provides no explanation of how, or what

will prevent the mold from continuing to spread within the wall cavities

that

remain open, or through the ceilings/walls as water continues to enter the

building. You may not know of the repeated leaks through the second floor

from the

roof and burst pipes â? " including during the recent NIOSH visit when water

was

actively pouring from the second floor ceiling, soaking the carpet and

continuing through the carpet into the first floor public areas that City

had â?o

remediatedâ?.

Dr. Lipseyâ?Ts report says in part â?oSince water intrusion was still going

on

in the building and there is evidence that contaminated wood had simply been

painted over, then I agree with the NIOSH certified industrial hygienist

that it

is only a matter of time before the mold and bacteria grow back in the walls

and on the walls and other places. Since the water intrusion is so

widespread,

the entire facility suffered from cross-contamination all during the months

since cosmetic remedial work started in October. The contaminated areas

would

again contaminate the remediated areas.

The second floor had not been remediated and I was told by the city engineer

that the 2nd floor will be sealed off and put under negative pressure to

keep

it from contaminating the public areas. Even if the building envelope, which

is extremely porous, would allow such containment (it will not), that makes

no

sense since water intrusion is still going on in the public areas and the

Customs area is still contaminated and adjoins the public areas with common

voids

and air space above and containment can not be complete to keep the high

levels of pathogenic mold and bacteria, in the tens of millions/gram of

dust, from

reentering the " remediated " areas. It is only a matter of time before the

toxic mold and bacteria grow back on the walls and other places and enter

the

public areas. Customs employees have moved out and if they took their

contaminated

files and soft furniture with them, then they will only cross contaminate

their new offices.

Therefore, remediation is not complete and water intrusion is still going

on,

and the millions of mold and bacteria pathogens per gram of dust that I

found

just three weeks ago in my sampling, will only grow back in time, especially

with the warm weather coming. The contaminated wall void wood, i.e. sill

plates and joists, have not been sanded, they have just been painted over

according

to Gill. Water is still flowing under the doors when it rains soaking

into " remediated " walls.

Therefore, I do not feel the building is safe for occupancy and will only

get

worse until the procedure is done properly - a procedure which I doubt is

possible in this building - as NIOSH said - it is not fit for human

habitation

and never was. This old warehouse is almost 100 years old and had railroad

cars

in it according to Jeff Monroe. It was never intended to be used as offices

for humans. In conclusion, after some 7 months under the City supervised

remediation, this building is as flawed as it was in August 2004.â?

On December 21, 2004 the Cityâ?Ts outside counsel Mr. Cliff Ruprecht wrote

to

our attorney and said â?oRemediation operations will be completed by

December

22nd. The remediation has been conducted by Biosafe Environmental Services,

Inc.,

a fully qualified and highly respected firm with extensive experience. As a

result of the remediation work, the building will get a clean bill of health

from Biosafe. The City will promptly share Biosafeâ?Ts assessments with SPC

and

its consultants and will work with SPC to facilitate appropriate independent

confirmation of Biosafeâ?Ts results by SPCâ?Ts consultants.â?

Yet Dr. Lipsey reports today that â?oI was under the impression that I would

be

doing Final Clearance Testing for re-occupancy by Scotia Prince employees

and

that Mark [biosafe] would be doing it simultaneously. Mark

was not there and I was told that he had no plans to be there. I was

surprised

to find that build back had been done without any final clearance testing

which

is clearly in violation of the industry standard of care. No sheetrock

contaminated with Stachybotrys, and other pathogenic molds and bacteria,

were saved

for me to sample or to even know where the reservoirs of toxic mold and

bacteria had been so that I could inspect and sample properly. In fact,

[previous]

efforts to get access into the public areas prior to build back were denied

to

me as I was told that the city had locked out Scotia Prince employees from

even entering the facility. It was only with the help of a federal agency,

NIOSH,

that I was able to enter the facility on March 10, 2005.

Therefore, with build back being done and the sheetrock evidence I needed

being destroyed and the painting over of the sill plates and joists that

were

previously contaminated in the public areas, there was really no urgency for

me

to do any sampling April 1, but I took a few samples anyway since it is a

long

way to come to be denied proper access to the facility. Industry best

practice

includes two rock solid pillars - 1) stop all water incursion first before

any removal of mold or damaged materials and 2) no build back until after

3rd

party independent clearances are complete and show success.â?

Therefore it is clear the IMT has not been safely remediated. Moreover, as

Dr. Lipsey underlines, this is 7 months after the City in direct

contradiction

to our experts, said that (A) the public areas were safe; (B) SPC was â?o

overreactingâ? in evacuating our personnel and passengers - Port Director

and

Assistant City Manager to Hamill and Bob Schrader; © the remediation

(of the

so-called â?osafeâ? areas) would take (1) a week and then (2) would be

complete by

December 22 and then (3) by January 26, then (4) March 25, and then (5)

would

absolutely, definitely be completed by April 1.

You can easily see the situation. It is self evident that we cannot subject

our employees or passengers to an unsafe environment. As such we are forced

to

cancel the 2005 season due to the Cityâ?Ts failure to meet its leasehold

obligations to provide your company with safe and appropriate facilities

from which

to operate.

This is a very difficult decision but we have no choice. We cannot, and

will

not knowingly expose our employees or customers to toxic molds, especially

given the medical conditions and substantial degree of permanent impairment

of

the majority of the IMT employees that have been assessed.

Since August 23, 2004 the City of Portland has ignored the advice, reports

and protocols of national experts. By repeatedly committing to a goal that

it

made no good faith effort to achieve, the City has induced SPC to incur

millions of dollars in unnecessary expenses in preparation for a season

which cannot

take place.

Such behavior by the City has put Scotia Prince Cruises in a precarious

financial position. The cancellation of our 2005 season will damage the

economies

of Yarmouth, Nova Scotia and, ironically, greater Portland. Particularly

grievous to me, the Cityâ?Ts actions now threaten the jobs of many of our

employees â? "

those same employees who were instrumental in generating hundreds of

millions of tourism dollars in the Portland region, the State of Maine, Nova

Scotia

and the other Atlantic Canada Provinces.

Having now been forced into a difficult situation your company needs to make

some tough decisions regarding future operations. I want to minimize your

uncertainty, but as I promised when I visited with you in Portland and

Yarmouth

two weeks ago, I first wanted to share with you the conclusion regarding

2005

as soon as we knew it. As matters have transpired it is a sad one. More

information about the company and your own situation will follow later this

week

once we have had a chance to examine alternative business plans.

I wish there was better news.

I have attached a partial time line which we had prepared to help us keep

track of the facts. It may assist you. If you wish more information about

Dr.

Lipsey or the care giver for your colleagues Dr. Shoemaker, their

information is

referenced below.

If you have any questions please contact your manager.

Sincerely,

Hudson

Chairman,

Scotia Prince Cruises

History

2001: Jack Elementary School in Portland is discovered to have airborne

Stachybotrys (which is one of the most toxic molds known to produce

mycotoxins)

with a reported level of 100 CFU/cu. meter (Colony Forming Units/cubic

meter).

The City of Portland (City) closes the school, purports to remediate it,

then

without admitting a mold problem, declares the school unsafe due to

structural

deficiencies in the roof and tears the school down.

Aug 23, 2004: At 0900 hours Scotia Prince Cruises (SPC) hand delivered a

notice to the City (Mayor and City Manager) that our testing had found high

levels

of dangerous molds, including Stachybotrys, in the International Marine

Terminal (IMT). At the same time SPC provided the relevant lab results to

the City

and informed the City that the building was not safe. We also provided the

lab results to the other users of the building (CBP and USCG) by 1030 hours.

SPC

prevented our employees and our clients from using the building and operated

for 2 months from tents.

o City officials immediately responded by saying we were overreacting and

that we had invented the mold problem in order to sue the City.

The IMT has airborne Stachybotrys counts 54 times higher than that reported

for Jack Elementary, which the City shut immediately, then remediated then

demolished. In addition the IMT had 36 additional types of mold with

airborne

counts as high as 111,000 CFU/cu. meter. Many of them are toxic or

pathogenic

molds known to produce mycotoxins.

The EPA and Center for Disease Control definition of a â?oSick Buildingâ?

is

one in which 20% of the occupants are ill â? " 100% of SPC's IMT employees

exhibit

symptoms of mold poisoning.

Sept 1, 2004: City issues a media release stating:

o â?opublic waiting areas at the International Marine Terminal [are] safe

for

public useâ?, but that

o â?oScotia Princeâ?Ts indoor office spaces [should] not be used until

remedial

steps are taken to lower the incidence of mold particles within these office

spacesâ?, and

o the City is acting on a report by Building sciences that includes 7

recommendations including â?omaterials should be removed as outlined in â?¦

accordance with guidelines published by the EPA and the New York Department

of Health

â?. [both these guidelines state the first step is to â?oSolve the

moisture

problemâ? or â?omold will re-growâ?.]

o As for the public areas, Assistant City Manager Mead states to the media

â?o

While the waiting area also has mold, the types found are harmless even in

great quantities and do not call for any remediationâ?.

o The portions of the building used by US Customs, Immigration and Border

Patrol have only low levels of mold.

Sept 16, 2004: In a letter, the City admits the offices in the warehouse

section of the IMT are unsafe to occupy, but states â?opublic areas are safe

and

available for immediate useâ?; however the City plans to repair â?owater

damageâ?

near public areas of the International Marine Terminal:

o Assistant City Manager Mead states the repairs include replacing damaged

tiles, wall structures and clean and service the HVAC and should be

completed â?o

earlyâ? the week ending Sept 26.

Sept 17, 2004, Assistant City Manager Mead states to the media " We're

beginning today to do some remedial work on the International Marine

Terminal in the

eastern wing of the building where the passenger areas areâ?¦Even though we

don't believe there are any air quality concerns over there, the consultant

did

identify areas where there had been water damage from the (heating and air

conditioning) system. "

Sept 24, 2004: City closes the entire IMT after Appledore Engineering Inc.,

who â?olooked at the pilings in Augustâ?, reported that â?owood pilings

were so

rotten and weak that the western end of the terminal might collapse during a

storm

â? and " It is our professional opinion that repairs are neither practically

nor economically feasible, due to the widespread advanced deterioration " .

o No explanation is given why this â?oopinionâ? does not extend to the

entire

structure.

o City councilor Will Gorham, when shown Appledore's report during a City

Hall meeting states " They are so corroded and rotted they look like

toothpicks " .

o While City councilors are given copies of the report, SPC has yet to see

the Appledore report or another two City engineering reports done in the

Spring

of 2004 â? " the latter reports we presume did not mention anything about an

imminent collapse of the building. Your company has been asking the City

for its

various engineering reports on the building for several years.

Nov 2004 â? " Our IMT exposed employees are examined by a leading biotoxin

(mold) physician and a wide variety of tests and blood work is done. Toxic

mold

illness was determined in every case except one â? " a member of the Yarmouth

staff

that had brief exposure to the IMT in 2001.

Dec 2004 â? " Remediation of the â?osafeâ? federal areas begins. City

official

tells federal employees that they only have molds that are safe and that the

â?obadâ?

molds are only on the Scotia Prince Cruises side of the building.

Dec 16, 2004: City Transportation Director Jeff Monroe states to the media

â?o

The mold remediation should be complete by the end of this month and the

terminal ready for the Scotia Prince in the springâ?.

Jan 6, 2005: Demolition of the warehouse section begins. [As of April 1, a

â?o

completionâ? date to which the City has repeatedly committed, the

replacement

facilities were not near completion nor were they in accordance with your

companyâ?Ts minimum operating needs, needs which your company has repeatedly

provided

to the City.]

Jan 8, 2005: Assistant Port Director Ben Snow states to the media â?othe

unsafe

part of the terminal is being demolished and the area with the mold has been

upgraded and now only needs minor repairsâ?.

Jan 2005: We write to the City asking them to certify the building as safe

to

use; to provide us with the methods and materials used; to allow us access

to

test the building. City refuses all of these requests.

Jan 2005: City writes to us that the remediation is complete and the

building

is ready to be used. We write again and again asking for City to certify

the

building as safe to use; to provide us with the methods and materials used;

to allow us access to test the building. City refuses all of these requests.

Mar 9-10, 2005: the National Institute for Occupational Safety and Health

(NIOSH) part of the EPAâ?Ts Center for Disease Control, which had been

contacted by

SPC employees, CBP employees and P & O Ports, conducts a Health Hazard

Evaluation (HHE) to determine if â?oworkers are exposed to hazardous

materials or

harmful conditionsâ?. The HHE includes a high level team consisting of 2

medical

doctors and 2 environmental technicians. At the closing meeting, attended

by

several senior City officials, it was noted that no attempt to prevent water

incursion at the IMT had taken place and as a result the IMT still leaked

â? " water

incursion through the roof; under doors; around windows and up through the

floors plus condensation in the walls.

o The NIOSH team stated: â?oThe whole structure is probably going to have a

problem being made water tight, so there may always be water intrusion

issues and

therefore any time you have water intrusion issues you have mold recurrence

issues. â?¦ The specific problem with the HVAC system, I don't think that

has

been fixed. That's due to the cooling capacity of the coils on the demand

cooling in summer. The coils freeze up and overflow the condensate drain

that runs

down into those areas below you talk aboutâ?¦ that's certainly not been

addressed.â?

o Dr. Lipsey queried â?oUntil water intrusion is stopped, HVAC fixed and

roof

fixed, is remediation really something that is top priority?â?

o NIOSH replied â?oWell, that's a good question. You typically need to

solve

the water issues before you spend a lot of extra money doing a retrofit. In

fact, we typically recommend that you fix the water intrusion first, then

you

remediate the mold & get it out of the building and then you go back in and

do

your new construction. That's typically the ideal situation.â?

o NIOSH also stated that it is widely understood by remediation

professionals

that the first step in remediating a building is to stop the leaks and that

the failure to do so meant that proper remediation could not take place; and

that

the IMT â? " which was originally built in 1909 as a warehouse â? " â?ois not

and

has never been, fit for human habitation.â?

During the HHE, the Cityâ?Ts remediation contractor admits:

o to NIOSH that the building still has dangerous molds that have not been

removed; and

o to Scotia Prince Cruisesâ?T expert that nothing has been done to make

building watertight because that was â?onot my jobâ?.

Notwithstanding these statements, the City continued to â?oremediateâ? the

IMT

without preventing further water incursion, apparently continuing to use the

same contractor.

Mar 29, 2005: NIOSH team returns for further evaluation and investigation of

the Customs and Border Protection (CBP) areas of the IMT and the CBP

employees.

Mar 29, 2005: Port Director Monroe states to the media â?omajor renovations

at

the International Marine Terminal should be completed by the end of this

weekâ?.

Mar 30, 2005, CBP notifies the City that CBP employees will evacuate the

building, reportedly due to a variety of safety and health related concerns.

Mar 31, 2005: Monroe states to the media â?oNew modular offices, a

6,000-square-foot warehouse and a newly converted waiting room at the

International Marine

Terminal are just about ready for the staff and visitors of Scotia Prince

Cruisesâ?.

o In truth the modular offices are not new and are not suitable â? " which

the

City knows; the warehouse is too small - which the City knows; and has no

freezer and no cooler - which the City knows; the IMT waiting room is

neither

converted nor properly remediated nor safe and none of the facilities are

close to

being ready. As replacement offices, purportedly designed to meet our

needs,

the City provides old (3+ years) used portables designed for Salem State

College, with no alteration of floor plan other than slight modification for

a â?o

ticket officeâ? that can only hold a small number of pax at a time.

o Additionally Monroe makes misleading comments about SPC including that SPC

is â?onot sponsoring the traditional Muscular Dystrophy Association

Smile-A-Mile

fund-raising event this yearâ?. [sPC has never been the sponsor of this

event

and only stepped in at the last moment last year to save the event â? " on

which

we lost money and still have $25,000 in a cash bond tied up in the event].

Apr 1, 2005 â? " Federal employees move out of the IMT.

Apr 1, 2005 â? " Scotia Prince Cruises inspects the trailers meant to be our

offices and the temporary structure being erected meant to be our warehouse,

bonded storage, freezer and cooler.

o The trailers (â?onewâ? according to the Cityâ?Ts media announcements) are

not

in accordance with our needs having been constructed for a state college

several years ago.

o The temporary structure is not large enough for our needs as the City

knows, having been ordered for the Cityâ?Ts own purposes for using the IMT

as a

freight terminal, and having been designed contrary to our requirements

which the

City had in their hands before ordering the structure.

o As of April 1, 2005 the structure has no freezer and no cooler.

Apr 1, 2005: SPC is granted access to the â?oremediatedâ? IMT but is unable

to

conduct proper bulk sampling tests due to a continuing cover-up effort by

the

City which contravenes all recognized best practices in mold remediation.

Also worth knowing

In October 2005 your company asked the City to indicate not later than

November 22, 2004 that the premises would be fully and safely remediated in

time for

the 2005 season and that the City provide a financial guarantee. The City

provided a guarantee that safe premises equal to or better than those in

place at

the beginning of the 2004 season would be made available not later than

April

1, 2005. It refused to meet the financial request thus forcing the company

to

make a multi-million dollar â?obetâ? on the Cityâ?Ts performance of its

promises.

The City has consistently stated that the entire building was safe, that the

public areas were safe, that the federal areas were safe, that Scotia Prince

Cruises had made untrue statements about the safety of the building and that

the company intended to use those statements to gain money from the City.

Lately the City has made statements to the public and to important

commercial

and other partners of Scotia Prince Cruises that whereas the City has done a

â?o

Herculeanâ? job to â?orenovateâ? the IMT and provide â?onewâ? offices and

warehousing for Scotia Prince, conversely the company had no intention to

operate the

2005 season and had spent only â?o10%â? of its usual advertising.

Throughout this entire period since August 23 the City has each month

continued to demand the full rent for the facilities â? " including the

demolished

portions and the unusable portions of the IMT to which access had been

denied to

the company between October 2004 and April 1, 2005.

Notwithstanding its egregious conduct in allowing a health hazard to exist,

then (a) denying its existence; (B) attacking and denigrating Scotia Prince

Cruises for discovering it; © attempting a cynical effort over many months

to

deny then cover up the problem, in order to induce our staff, passengers and

federal agencies to use the unsafe facility - the City at various times has

also

threatened legal action against your company for â?onon-performanceâ? if we

did

not operate the 2005 season.

For more information please visit:

The lab we have used since August 2004 to evaluate IMT samples (this is the

same lab used by NIOSH)

P & K Microbiology - http://www.stl-inc.com/labs/P & K/about/AboutUs.htm

The toxicologist expert we use

Dr. Lipsey - http://www.richardlipsey.com/

The physician treating our employees and other IMT patients:

Dr. Ritchie Shoemaker - http://www.chronicneurotoxins.com/

Other helpful information:

http://www.schoolmoldhelp.org/research.html

http://www.ci.nyc.ny.us/html/doh/html/epi/moldrpt1.html

http://www.tdh.state.tx.us/beh/mold/finalrule.pdf

http://www.rhodes.edu/biology/glindquester/viruses/introtopathorg.html

http://www.moldtraining.com/html/whatis.html

http://mold-help.org/content/view/456

Dr. L. Lipsey

Toxicologist and Instructor

University of North Florida, OSHA Cert/HazMat

Univ. of Florida Jax Poison Control Board

Lipsey CV ( resume ) ---Toxicology And Environmental Health Associates

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