DuPont 2007 Annual Report Download - page 14

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Item 3. Legal Proceedings, continued
seeking retrofit and penalties. Lucite has notified the company that it intends to seek indemnity from DuPont if this
occurs.
Gibson City, Illinois
The EPA has alleged that The Solae Company violated the CAA’s New Source Review Regulations and certain
Prevention of Significant Deterioration requirements at its plant in Gibson City, Illinois. The Solae Company, a
majority-owned venture with Bunge Limited, was formed in 2003. The EPA has proposed a settlement of this matter
that would include sites located in Indiana, Ohio, Oklahoma and Tennessee, some of which are wholly owned by
DuPont, in addition to the Gibson City site. The EPA’s proposed settlement includes a penalty of $350,000 and
Supplemental Environmental Projects involving expenditures of at least $500,000. The company and The Solae
Company are negotiating with the EPA and U.S. Department of Justice (DOJ).
Pascagoula, Mississippi
In October 2002, the First Chemical Corporation (FCC) plant in Pascagoula, Mississippi experienced an explosion at
one of its process units – the mononitrotoluene unit – Still Number 1 (MNT Still). The unit overheated, pressure built
up in the column and a significant release occurred. No significant injuries occurred, nor was there any significant
environmental harm as a result of the incident.
At the time of the October 2002 incident, FCC was not affiliated with DuPont; however, DuPont was in final
negotiations for the purchase of ChemFirst, Inc., of which FCC was a subsidiary. After an extensive investigation of
the incident by FCC and DuPont, DuPont completed the purchase in November 2002.
Two years after the incident, the EPA began an investigation under the CAA’s “Prevention of Accidental Releases –
General Duty of Care” provisions – CAA 112(r). Over the last three years, the EPA has requested significant
documentation regarding the incident and the rebuild of the MNT Still. The EPA also requested, and FCC agreed to
an independent third-party “process safety management” audit of the FCC facility, seeking information on pre-
incident documents as well as the post-incident repair and replacement of the MNT Still.
The EPA has referred the matter to DOJ for enforcement action against FCC under the CAA. The EPA/DOJ and
DuPont are currently engaged in settlement discussions to resolve the proposed CAA 112(r) enforcement action.
Management cannot predict the outcome of these discussions at this time.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
12
Part I