In 2007, one violation was alleged during regulatory inspections at K-C facilities. In addition, one issue raised during 2006 by the U.S. Occupational Safety & Health Administration (OSHA) was resolved during 2007.

Our Everett mill in Washington, U.S., received an enforcement notice following a Washington Department of Occupational Safety and Health (DOSH) inspection in August 2007. DOSH had received a complaint concerning potential exposure to high voltage electricity. DOSH inspectors found no fault or misconduct by K-C, but determined that certain employees were not following safe work practices. On appeal the proposed penalty against K-C was reversed.

Our New Milford mill in Connecticut, U.S., was inspected and fined $9,000 by OSHA in February 2006 for allowing tissue dust to accumulate on internal building structures and for not installing electrical equipment appropriate for an environment in which dust was present. We paid the penalty and have been implementing corrective measures specified by a settlement agreement we entered into with OSHA in February 2007.