Baker Hughes 2009 Annual Report Download - page 82

8 Baker Hughes Incorporated
Research and Development Manager from August 2002
to January 2004 and Reliability Assurance Engineer from
April 2001 to August 2002 of WellDynamics, Inc. Well
Engineer, Shell U.K. Exploration and Production 1997
to 2001. Employed by the Company in 2008.
John A. O’Donnell 61
Vice President of the Company since 1998 and Presi-
dent Western Hemisphere Operations since May 2009.
President of Baker Petrolite Corporation from 2005 to
May 2009. President of Baker Hughes Drilling Fluids
from 2004 to 2005. Vice President, Business Process
Development of the Company from 1998 to 2002; Vice
President, Manufacturing, of Baker Oil Tools from 1990
to 1998 and Plant Manager of Hughes Tool Company
from 1988 to 1990. Employed by the Company in 1975.
Arthur L. Soucy 47
Vice President Supply Chain of the Company since
April 2009. Vice President, Global Supply Chain for Pratt
and Whitney from 2007 to 2009. Sloan Fellows Program,
Innovation and Global Leadership at Massachusetts Insti-
tute of Technology from 2006 to 2007. General Manager,
Combustors, Augmenters and Nozzles of Pratt and
Whitney from 2005 to 2006. Various managerial
positions at Pratt and Whitney from 1995 to 2006.
Employed by the Company in 2009.
Clifton N.B. Triplett 51
Vice President and Chief Information Officer of the
Company since September 2008. Corporate Vice Presi-
dent, Motorola Global Services from 2007 to 2008 and
Corporate Vice President and Chief Information Officer
of Motorola’s Network and Enterprise Group from 2006
to 2007. Employed by General Motors from 1997 to 2006
as Global Information Systems Officer for Computing
and Telecommunications Services from 2003 to 2006
and Global Manufacturing and Quality Information
Systems Officer from 1997 to 2003. Employed by the
Company in 2008.
There are no family relationships among our executive officers.
ENVIRONMENTAL MATTERS
We are committed to the health and safety of people, pro-
tection of the environment and compliance with laws, regula-
tions and our policies. Our past and present operations include
activities that are subject to domestic (including U.S. federal,
state and local) and international regulations with regard to
air and water quality and other environmental matters. We
believe we are in substantial compliance with these regula-
tions. Regulation in this area continues to evolve, and changes
in standards of enforcement of existing regulations, as well
as the enactment and enforcement of new legislation, may
require us and our customers to modify, supplement or replace
equipment or facilities or to change or discontinue present
methods of operation.
We are involved in voluntary remediation projects at some
of our present and former manufacturing locations or other
facilities, the majority of which relate to properties obtained
in acquisitions or to sites no longer actively used in operations.
On rare occasions, remediation activities are conducted as
specified by a government agency-issued consent decree or
agreed order. Estimated remediation costs are accrued using
currently available facts, existing environmental permits, tech-
nology and presently enacted laws and regulations. For sites
where we are primarily responsible for the remediation, our
cost estimates are developed based on internal evaluations and
are not discounted. We record accruals when it is probable that
we will be obligated to pay amounts for environmental site
evaluation, remediation or related activities, and such amounts
can be reasonably estimated. If the obligation can only be esti-
mated within a range, we accrue the minimum amount in the
range. In general, we seek to accrue costs for the most likely
scenario, where known. Accruals are recorded even if significant
uncertainties exist over the ultimate cost of the remediation.
Ongoing environmental compliance costs, such as obtaining
environmental permits, installation of pollution control equip-
ment and waste disposal, are expensed as incurred.
The Comprehensive Environmental Response, Compensa-
tion and Liability Act (known as “Superfund” or “CERCLA”)
imposes liability for the release of a “hazardous substance”
into the environment. Superfund liability is imposed without
regard to fault, even if the waste disposal was in compliance
with laws and regulations. The United States Environmental
Protection Agency (the “EPA”) and appropriate state agencies
supervise investigative and cleanup activities at Superfund sites.
We have been identified as a potentially responsible party
(“PRP”) in remedial activities related to various Superfund sites,
and we accrue our share of the estimated remediation costs of
the site based on the ratio of the estimated volume of waste
we contributed to the site to the total volume of waste dis-
posed at the site. PRPs in Superfund actions have joint and
several liability for all costs of remediation. Accordingly, a PRP
may be required to pay more than its proportional share of
such costs. For some projects, it is not possible at this time to
quantify our ultimate exposure because the projects are either
in the investigative or early remediation stage, or allocation
information is not yet available. However, based upon current
information, we do not believe that probable or reasonably
possible expenditures in connection with the sites are likely to
have a material adverse effect on our consolidated financial
statements because we have recorded adequate reserves to
cover the estimate we presently believe will be our ultimate
liability in the matter. Further, other PRPs involved in the sites
have substantial assets and may reasonably be expected to pay
their share of the cost of remediation, and, in some circum-
stances, we have insurance coverage or contractual indemnities
from third parties to cover a portion of or the ultimate liability.
During the year ended December 31, 2009, we spent
$35 million to comply with domestic and international stan-
dards regulating the discharge of materials into the environment
or otherwise relating to the protection of the environment
(collectively, “Environmental Regulations”). This cost includes