In 2007, we received seven notices of environmental non-compliance which resulted in fines from regulatory authorities. These notices are issued when a regulated facility has allegedly failed to comply with applicable environmental laws and regulations.
In February, foam appeared on the river adjacent to our Aranguren mill in Spain. Neither K-C nor the authorities were able to establish the cause. However, since the foam formed at the mill’s point of discharge, the authorities used an administrative procedure to fine the mill €15,000 (around $22,500).
Our Everett, Washington, mill received three notices of violation for briefly exceeding sulfur dioxide (SO2) emission limits. Two of these incidents were excused under the regulations and the third exceedance resulted in a fine of $2,000. The mill has taken steps to resolve the problem in each case.
The Everett mill also received two notices of violation relating to odor. In April 2007, mill employees fed a large volume of spent liquor into an empty basin in the wastewater treatment plant to remove pollutants before discharge. However, the liquid unexpectedly emitted a foul odor. The mill paid a $16,000 penalty to the Washington Department of Ecology (DOE).
The second case followed complaints of smoky odors from a storage site three miles east of the Everett mill. A wood waste storage pile had been catching fire for several months. The mill developed and implemented best management practices, which have been effective in reducing the size of the wood pile, controlling flare-ups and preventing odor. The DOE issued a notice of violation and we paid a $40,000 penalty. In addition, the mill donated funds to the Puget Sound Air Authority to abate pollution in the Everett area. Specifically, we have committed $20,000 to replace older woodstoves in the area with modern clean burning models plus $105,000 to retrofit heavy-duty diesel vehicles (e.g., transit coaches and well waste-haul vehicles) with pollution-reduction equipment.
In May 2007, K-C was served a summons in Pennsylvania state court by the Delaware County Regional Water Quality Authority (DELCORA). DELCORA is a public agency that operates a sewerage system and a wastewater treatment facility serving industrial and municipal customers, including K-C’s Chester mill. DELCORA also regulates the discharge of wastewater from the Chester mill. DELCORA has alleged that the Chester mill underreported the quantity of effluent discharged to DELCORA from the mill for several years due to an inaccurate effluent metering device. DELCORA claims that the mill owes additional amounts based on the alleged underreporting. K-C believes that DELCORA’s allegations are without merit and is vigorously defending against DELCORA’s actions.
