Boeing 2008 Annual Report Download - page 28

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Santa Susana Field Laboratory
We possess a National Pollutant Discharge Elimination System (NPDES) permit, issued by the
California Regional Water Quality Control Board, Los Angeles Region (Regional Board), which limits
the permissible level of certain constituents in surface water discharged from various outfalls at our
Santa Susana Field Laboratory site in Simi Valley, California. Since June 2004, the Regional Board
has amended this permit to impose increasingly stringent limits. In late 2006, the California Water
Resources Control Board (State Board) partially granted and partially denied the Company’s appeal of
these amendments, and remanded the permit to the Regional Board to correct certain errors. On
November 1, 2007, the Regional Board responded to the remand from the State Board by amending
the permit, and issuing a cease and desist order incorporating some (but not all) relief that we had
requested. On December 3, 2007, we filed an administrative appeal of certain portions of the Regional
Board’s November 1st action, but asked that the State Board hold the appeal in abeyance as we seek
to work cooperatively with the Regional Board to address continuing permit compliance issues. In the
meantime, on January 17, 2007, we filed an action in Los Angeles County Superior Court challenging
the State Board’s rulings that are adverse to the Company, including the determination to uphold the
more stringent limits in the permit. In light of ongoing discussions between the Company and the
Regional Board seeking to reach a consensual resolution of the issues, on December 22, 2008, the
Company and the State Board filed a joint stipulation and tolling agreement with the Superior Court
requesting that this judicial action be dismissed without prejudice to re-filing in the future if the
Company so chooses.
On June 11, 2008, the Regional Board issued a Notice of Violation informing us that the Board has
identified 24 discharge violations from our self-monitoring reports covering the period October 1, 2006,
through March 31, 2008. Each violation, if established, could give rise to assessment of an
administrative penalty of up to $10,000 plus possible additional assessments based upon the volume
of water discharged. We are working with the Board staff to review and address the Notice. On
December 8, 2008 the Board issued an Order requesting and authorizing the Company to prepare
work plans and, upon approval, to perform interim contaminant source removal actions in watersheds
feeding into two outfalls currently included in our permit. These actions will improve water quality and
compliance with water quality standards at these outfalls.
In November 2005, we received a grand jury subpoena from the U.S. Attorney’s office in Los Angeles
seeking documents from 2001 onward pertaining to our NPDES permit compliance status under the
federal Clean Water Act (CWA). We produced the requested documents and on August 5, 2008, the
U.S. Attorney’s office informed us that it was closing its investigation and would take no further action
on this matter.
Item 4. Submission of Matters to a Vote of Security Holders
There were no matters submitted to a vote of security holders during the quarter ended December 31,
2008.
14