Paloma Industries Ltd. was aware of defect in its gas water heaters in 1982, 2 1/2 years before the first death from carbon monoxide poisoning due to incomplete combustion was reported, industry sources said Friday.

The sources said the defect involved problems with the heaters' control boxes and various solder fractures.

Paloma, which did not recall the products in question or make the defects public, circulated an in-house document that year instructing technicians on how to repair them, they said.