Chairman's - FMC Corporation

FMC CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In 2009, 2008 and 2007, we recorded environmental provisions totaling $27.3 million, $37.2 million and
$31.3 million, respectively. The $27.3 million recorded in 2009 included $47.5 million recorded as an increase to
our environmental reserves, $17.6 million recorded as a recovery in “Other assets” on our consolidated balance
sheets and $2.6 million of recoveries recorded directly to “Discontinued operations, net of income taxes” on our
consolidated statements of income. The $37.2 million recorded in 2008 included $48.7 million recorded as an
increase to our environmental reserves, $9.6 million recorded as a recovery in “Other assets” on our consolidated
balance sheets and $1.9 million of recoveries recorded directly to “Discontinued operations, net of income taxes”
on our consolidated statements of income. The $31.3 million recorded in 2007 included $33.3 million recorded as
an increase to our environmental reserves and $2.0 million recorded as a recovery in “Other assets” on our
consolidated balance sheets. These provisions related to costs for the continued cleanup of both operating sites
and for certain discontinued manufacturing operations from previous years.
Front Royal
On October 21, 1999, the Federal District Court for the Western District of Virginia approved a consent
decree signed by us, the EPA (Region III) and the Department of Justice (“DOJ”) regarding past response costs
and future clean-up work at the discontinued fiber-manufacturing site in Front Royal, Virginia. In January 2010,
EPA issued a ROD for Operable Unit 7 (OU-7) primarily addressing waste basins and groundwater, which is the
last remaining operable unit at the site. The current reserve includes a provision for OU-7 and previously
approved work for other operable units under the Consent Decree. As part of a prior settlement, government
agencies have reimbursed us for approximately one-third of the clean-up costs due to the government’s role at
the site, and we expect reimbursement to continue in the future. The amount of the reserve for this site was $31.1
million at December 31, 2009 and $34.0 million at December 31, 2008.
Pocatello
We have successfully decommissioned our Pocatello plant, and formally requested that EPA acknowledge
completion of work under a June 1999 RCRA Consent Decree. Future remediation costs include compliance with
a 1998 CERCLA ROD which addresses ground water contamination and historic waste storage areas on the
Pocatello plant portion of the Eastern Michaud Flats Superfund Site. FMC previously signed a CERCLA Consent
Decree to implement this ROD, however, in August of 2000, the DOJ withdrew the Consent Decree to review the
administrative record supporting the EPA’s remedy selection decision. Beginning in 2007 and throughout 2008
and 2009, we performed supplemental investigative work pursuant to an October 2003 CERCLA Administrative
Order to address areas triggered by plant shutdown. EPA approved the supplemental remedial investigation
report in May of 2009 and a supplemental feasibility study has been prepared for agency review. We expect the
EPA to issue an amended ROD after approval of the draft feasibility study. Additionally, we continue to conduct
work pursuant to a December 2006 CERCLA unilateral administrative order to FMC to address air emissions
from vents beneath the cap of one of the closed RCRA ponds, Pond 16S. The amount of the reserve for this site
was $46.1 million at December 31, 2009 and $36.8 million at December 31, 2008.
Middleport
At our facility in Middleport, New York, we have constructed an engineered containment cover, closed
RCRA regulated surface water impoundments and are collecting and treating both surface water runoff and
ground water, and completed remediation of soil at 26 offsite residential properties and other offsite areas under a
RCRA Corrective Action Order. Additional costs may result if additional remediation is required by regulatory
agencies during the review and approval of various components of the RCRA corrective measures study. The
amount of the reserve for this site is $27.9 million at December 31, 2009 and $27.5 million at December 31,
2008.
83