3M 2015 Annual Report Download - page 107

TableofContents
companies,forthecostsofremediationofenvironmentalcontaminationatcurrentorformerfacilitiesandatoff-sitelocations.The
Companyhasidentifiednumerouslocations,mostofwhichareintheUnitedStates,atwhichitmayhavesomeliability.Pleaserefer
tothesectionentitled“EnvironmentalLiabilitiesandInsuranceReceivables”thatfollowsforinformationontheamountofthe
accrual.

EnvironmentalMatters

Aspreviouslyreported,theCompanyhasbeenvoluntarilycooperatingwithongoingreviewsbylocal,state,federal(primarilythe
U.S.EnvironmentalProtectionAgency(EPA)),andinternationalagenciesofpossibleenvironmentalandhealtheffectsofvarious
perfluorinatedcompounds(“PFCs”),includingperfluorooctanylcompoundssuchasperfluorooctanoate(“PFOA”)and
perfluorooctanesulfonate(“PFOS”).Asaresultofitsphase-outdecisioninMay2000,theCompanynolongermanufactures
perfluorooctanylcompounds.Thecompanyceasedmanufacturingandusingthevastmajorityofthesecompoundswithin
approximatelytwoyearsofthephase-outannouncement,andceasedallmanufacturingandthelastsignificantuseofthischemistry
bytheendof2008.Throughitsongoinglifecyclemanagementanditsrawmaterialcompositionidentificationprocessesassociated
withtheCompany’spoliciescoveringtheuseofallpersistentandbio-accumulativematerials,theCompanyhasonoccasion
identifiedthepresenceofprecursorchemicalsinmaterialsreceivedfromsuppliersthatmayultimatelydegradetoPFOA,PFOS,or
similarcompounds.Uponsuchidentification,theCompanyworkstofindalternativesforsuchmaterials.

RegulatoryactivitiesconcerningPFOAand/orPFOScontinueintheUnitedStates,Europeandelsewhere,andbeforecertain
internationalbodies.Theseactivitiesincludegatheringofexposureanduseinformation,riskassessment,andconsiderationof
regulatoryapproaches.Asthedatabaseofstudiesofbothchemicalshasexpanded,theEPAhasdevelopeddrafthumanhealtheffects
documentssummarizingtheavailabledatafromthesestudies.InFebruary2014,theEPAinitiatedexternalpeerreviewofitsdraft
humanhealtheffectsdocumentsforPFOAandPFOS.ThepeerreviewpanelmetinAugust2014.TheEPAhasstatedthatfollowing
thepeerreviewprocessitwillreviseitshealtheffectsdocumentsandusethemtoestablishlifetimehealthadvisoriesforPFOSand
PFOAindrinkingwater.Lifetimehealthadvisories,whilenotenforceable,serveasguidanceandarebenchmarksfordeterminingif
concentrationsofchemicalsintapwaterfrompublicutilitiesaresafeforpublicconsumption.Oncefinalized,theEPAstatedthatthe
lifetimehealthadvisoriesareexpectedtosupersedetheprovisionalhealthadvisoriesforPFOAandPFOSindrinkingwaterissued
bytheEPAin2009—currentlyat0.4microgramsperliterforPFOAand0.2microgramsperliterforPFOS.Inanefforttocollect
exposureinformationundertheSafeDrinkingWaterAct,theEPApublishedonMay2,2012alistofunregulatedsubstances,
includingsixPFCs,requiredtobemonitoredduringtheperiod2013-2015bypublicwatersystemsuppliestodeterminetheextentof
theiroccurrence.TheEPAisreportingresultsfromthisexerciseonarollingbasisthatwillcontinuein2016.Throughyear-end
2015,theEPAhasreportedresultsfor4,764publicwatersuppliesnationwide.NoneofthesehavereportedPFOAabovethe
provisionalhealthadvisorylevelissuedbytheEPAin2009,andseventeenhavereportedPFOSlevelsabovethe2009provisional
healthadvisory.

TheCompanyiscontinuingtomakeprogressinitswork,underthesupervisionofstateregulators,toaddressitshistoricdisposalof
PFC-containingwasteassociatedwithmanufacturingoperationsattheDecatur,Alabama,CottageGrove,Minnesota,and
Cordova,Illinoisplants.

Aspreviouslyreported,theCompanyenteredintoavoluntaryremedialactionagreementwiththeAlabamaDepartmentof
EnvironmentalManagement(ADEM)toaddressthepresenceofPFCsinthesoilattheCompany’smanufacturingfacilityin
Decatur,Alabama.PursuanttoapermitissuedbyADEM,forapproximatelytwentyyears,theCompanyincorporateditswastewater
treatmentplantsludgecontainingPFCsinfieldsatitsDecaturfacility.Afterareviewoftheavailableoptionstoaddressthepresence
ofPFCsinthesoil,ADEMagreedthatthepreferredremediationoptionistouseamultilayercapovertheformersludge
incorporationareasonthemanufacturingsitewithsubsequentgroundwatermigrationcontrolsandtreatment.Implementationofthat
optionwillcontinueandisexpectedtobecompletedin2018.

TheCompanycontinuestoworkwiththeMinnesotaPollutionControlAgency(MPCA)pursuanttothetermsofthepreviously
disclosedMay2007SettlementAgreementandConsentOrdertoaddressthepresenceofcertainPFCsinthesoilandgroundwaterat
formerdisposalsitesinWashingtonCounty,Minnesota(OakdaleandWoodbury)andattheCompany’smanufacturingfacilityat
CottageGrove,Minnesota.Underthisagreement,theCompany’sprincipalobligationsinclude(i)evaluatingreleasesofcertainPFCs
fromthesesitesandproposingresponseactions;(ii)providing
107
