Honeywell 2009 Annual Report Download - page 120

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
The above-referenced site is the most significant of the twenty-one sites located in Hudson County, New
Jersey that are the subject of an Administrative Consent Order (ACO) entered into with the New Jersey
Department of Environmental Protection (NJDEP) in 1993 (the "Honeywell ACO Sites"). Remedial investigations
and activities consistent with the ACO have also been conducted and are underway at the other Honeywell ACO
Sites. We have recorded reserves for the Honeywell ACO Sites where appropriate under the accounting policy
described above.
On May 3, 2005, NJDEP filed a lawsuit in New Jersey Superior Court against Honeywell and two other
companies seeking declaratory and injunctive relief, unspecified damages, and the reimbursement of unspecified
total costs relating to sites in New Jersey allegedly contaminated with chrome ore processing residue. The claims
against Honeywell relate to the activities of a predecessor company which ceased its New Jersey manufacturing
operations in the mid-1950's. Honeywell and the two other companies have agreed to settle this litigation with
NJDEP, subject to Court approval. Under the settlement, Honeywell would pay $5 million of NJDEP's past costs,
as well as accept sole responsibility to remediate 24 of the 53 "Publicly Funded Sites" (i.e., those sites for which
none of the three companies had previously accepted responsibility). Honeywell would also bear 50% of the
costs at another 10 Publicly Funded Sites. We have recorded reserves for the Publicly Funded Sites where
appropriate under the accounting policy described above.
We have entered into court-approved settlements of litigation filed in federal court against Honeywell and
other landowners seeking the cleanup of chrome residue at groups of properties known as Study Areas 5, 6
South and 6 North of the Honeywell ACO Sites. The required remedial actions are consistent with our recorded
reserves.
Dundalk Marine Terminal, Baltimore—Chrome residue from legacy chrome plant operations in Baltimore
was deposited as fill at the Dundalk Marine Terminal ("DMT"), which is owned and operated by the Maryland Port
Administration ("MPA"). Honeywell and the MPA have been sharing costs to investigate and mitigate related
environmental issues, and have entered into a cost sharing agreement under which Honeywell will bear 77
percent of the costs of developing and implementing permanent remedies for the DMT facility. The investigative
phase is ongoing, after which the appropriate remedies will be identified and chosen. We have negotiated a
Consent Decree with the MPA and Maryland Department of the Environment ("MDE") with respect to the
investigation and remediation of the DMT facility. The Consent Decree is being challenged in federal court by
BUILD, a Baltimore community group, together with a local church and two individuals (collectively "BUILD"). In
October 2007, the Court dismissed with prejudice BUILD's state law claims and dismissed without prejudice
BUILD's RCRA claims regarding neighborhoods near the DMT facility. In August 2008, the Court held a hearing
on the Company's motion to dismiss BUILD's remaining claims on the grounds that MDE is diligently prosecuting
the investigation and remediation of the DMT. We are awaiting the Court's decision. We do not believe that this
matter will have a material adverse impact on our consolidated financial position or operating cash flows. Given
the scope and complexity of this project, it is possible that the cost of remediation, when determinable, could
have a material adverse impact on our results of operations in the periods recognized.
Onondaga Lake, Syracuse, NY—We are implementing a combined dredging/capping remedy of Onondaga
Lake pursuant to a consent decree approved by the United States District Court for the Northern District of New
York in January 2007. We have accrued for our estimated cost of remediating Onondaga Lake based on
currently available information and analysis performed by our engineering consultants. Honeywell is also
conducting remedial investigations and activities at other sites in Syracuse. We have recorded reserves for these
investigations and activities where appropriate under the accounting policy described above.
Honeywell has entered into a cooperative agreement with potential natural resource trustees to assess
alleged natural resource damages relating to this site. It is not possible to predict the outcome or duration of this
assessment, or the amounts of, or responsibility for, any damages.
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