Honeywell 2007 Annual Report Download - page 25

Transportation Systems
Stratford, Canada
Shanghai, China
Conde, France
Thaon-Les-Vosges, France
Glinde, Germany
Waterford, Ireland
Atessa, Italy
Kodama, Japan
Ansan, Korea
(leased)
Mexicali, Mexico (partially leased)
Barcelona, Spain
Item 3. Legal Proceedings
We are subject to a number of lawsuits, investigations and claims (some of which involve substantial
amounts) arising out of the conduct of our business. See a discussion of environmental, asbestos and other
litigation matters in Note 21 of Notes to Financial Statements in "Item 8. Financial Statements and
Supplementary Data."
Environmental Matters Involving Potential Monetary Sanctions in Excess of $100,000
Although we cannot predict the outcome of the matters described below, we believe that sufficient provisions
have been made in our financial statements for these matters. We do not believe that the matters described
below will have a material adverse effect on our consolidated financial position, results of operations or operating
cash flows.
We have been engaged in discussions with the Louisiana Department of Environmental Quality (LADEQ) to
resolve alleged civil environmental violations at our Baton Rouge and Geismar, Louisiana facilities that relate, in
part, to a release of chlorine, a release of antimony pentachloride (which resulted in an employee fatality) and an
employee exposure to hydrofluoric acid at the Baton Rouge facility that were the subject of a previously reported
matter. A settlement has been reached with LADEQ under which Honeywell will pay a fine of $250,000 and
perform certain additional Supplemental Environmental Projects for a total cost of approximately of $630,000. In
December 2007, the United States EPA referred additional civil claims related to these incidents to the
Department of Justice. At the Department of Justice's request, Honeywell has signed a tolling agreement while
the parties discuss resolving these claims.
Honeywell is a defendant in a lawsuit filed by the Arizona Attorney General's office on behalf of the Arizona
Department of Environmental Quality (ADEQ). The complaint alleges failure to make required disclosures, as well
as unrelated environmental violations. ADEQ's most significant allegations have been dismissed with prejudice
over the course of the proceedings. The state has voluntarily dismissed its remaining claims without prejudice
pending consideration of an appeal of its previously dismissed claims.
In February 2007, ADEQ demanded penalties for alleged violations by Honeywell of the state's underground
storage tank regulations at the aircraft engines plant in Phoenix, Arizona. ADEQ subsequently added claims
relating to other alleged environmental violations at the aircraft engines plant and has made a demand to resolve
all alleged violations which we are evaluating. Negotiations regarding the penalty are ongoing.
Honeywell received Notices of Violation from the Maricopa County Air Quality Department in July 2006 with
respect to various air permitting compliance matters at one of its facilities located in Phoenix, Arizona. Honeywell
believes it has taken appropriate corrective and preventive actions to address the concerns raised by the County.
Item 4. Submission of Matters to a Vote of Security Holders
Not Applicable.
16