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treatmentoralternativedrinkingwateruponidentifyinganylevelexceedingaHealthBasedValue(“HBV”)orHealthRiskLimit
(“HRL”)(i.e.,theamountofachemicalindrinkingwaterdeterminedbytheMinnesotaDepartmentofHealth(MDH)tobesafefor
humanconsumptionoveralifetime)forcertainPFCsforwhichaHBVand/orHRLexistsasaresultofcontaminationfromthese
sites;(iii)remediatingidentifiedsourcesofotherPFCsatthesesitesthatarenotcontrolledbyactionstoremediatePFOAandPFOS;
and(iv)sharinginformationwiththeMPCAaboutcertainperfluorinatedcompounds.During2008,theMPCAissuedformal
decisionsadoptingremedialoptionsfortheformerdisposalsitesinWashingtonCounty,Minnesota(OakdaleandWoodbury).In
August2009,theMPCAissuedaformaldecisionadoptingremedialoptionsfortheCompany’sCottageGrovemanufacturing
facility.Duringthespringandsummerof2010,3MbeganimplementingtheagreeduponremedialoptionsattheCottageGroveand
Woodburysites.3McommencedtheremedialoptionattheOakdalesiteinlate2010.Ateachlocationtheremedialoptionswere
recommendedbytheCompanyandapprovedbytheMPCA.RemediationworkhasbeencompletedattheOakdaleandWoodbury
sites,andtheyareinanoperationalmaintenancemode.RemediationwillcontinueattheCottageGrovesiteduring2016.
InAugust2014,theIllinoisEPAapprovedarequestbytheCompanytoestablishagroundwatermanagementzoneatits
manufacturingfacilityinCordova,Illinois,whichincludesongoingpumpingofimpactedsitegroundwater,groundwatermonitoring
androutinereportingofresults.
TheCompanycannotpredictwhatadditionalregulatoryactionsarisingfromtheforegoingproceedingsandactivities,ifany,maybe
takenregardingsuchcompoundsortheconsequencesofanysuchactions.
EnvironmentalLitigation
Aspreviouslyreported,aformeremployeefiledapurportedclassactionlawsuitin2002intheCircuitCourtofMorganCounty,
Alabama(the“St.John”case),seekingunstateddamagesandallegingthattheplaintiffssufferedfear,increasedrisk,subclinical
injuries,andpropertydamagefromexposuretocertainperfluorochemicalsatorneartheCompany’sDecatur,Alabama,
manufacturingfacility.Thecourtin2005grantedtheCompany’smotiontodismissthenamedplaintiff’spersonalinjury-related
claimsonthebasisthatsuchclaimsarebarredbytheexclusivityprovisionsofthestate’sWorkersCompensationAct.Theplaintiffs’
counselfiledanamendedcomplaintinNovember2006,limitingthecasetopropertydamageclaimsonbehalfofapurportedclassof
residentsandpropertyownersinthevicinityoftheDecaturplant.InJune2015,theplaintiffsfiledanamendedcomplaintadding
additionaldefendants,includingBFIWasteManagementSystemsofAlabama,LLC;BFIWasteManagementofNorthAmerica,
LLC;theCityofDecatur,Alabama;MorganCounty,Alabama;MunicipalUtilitiesBoardofDecatur;andMorganCounty,Alabama,
d/b/aDecaturUtilities.InSeptember2015,thecourtissuedaschedulingorderstayingdiscoverypendingmediationwhichoccurred
inJanuary2016,butdidnotresolvethecase.Discoveryrelatingtotheclasscertificationwillbegin,andtheclasscertification
hearingisscheduledforNovember2016.
In2005,thejudgeinasecondpurportedclassactionlawsuitfiledbythreeresidentsofMorganCounty,Alabama,seekingunstated
compensatoryandpunitivedamagesinvolvingallegeddamagetotheirpropertyfromemissionsofcertainperfluorochemical
compoundsfromtheCompany’sDecatur,Alabama,manufacturingfacilitythatformerlymanufacturedthosecompounds(the
“Chandler”case)grantedtheCompany’smotiontoabatethecase,effectivelyputtingthecaseonholdpendingtheresolutionofclass
certificationissuesintheSt.Johncase.Despitethestay,plaintiffsfiledanamendedcomplaintseekingdamagesforallegedpersonal
injuriesandpropertydamageonbehalfofthenamedplaintiffsandthemembersofapurportedclass.Nofurtheractioninthecaseis
expectedunlessanduntilthestayislifted.
InFebruary2009,aresidentofFranklinCounty,Alabama,filedapurportedclassactionlawsuitintheCircuitCourtofFranklin
County(the“Stover”case)seekingcompensatorydamagesandinjunctivereliefbasedontheapplicationbytheDecaturutility’s
wastewatertreatmentplantofwastewatertreatmentsludgetofarmlandandgrasslandsinthestatethatallegedlycontainPFOA,
PFOSandotherperfluorochemicals.ThenamedplaintiffseekstorepresentaclassofallpersonswithintheStateofAlabamawho
havehadPFOA,PFOS,andotherperfluorochemicalsreleasedordepositedontheirproperty.InMarch2010,theAlabamaSupreme
CourtorderedthecasetransferredfromFranklinCountytoMorganCounty.InMay2010,consistentwithitshandlingoftheother
matters,theMorganCountyCircuitCourtabatedthiscase,puttingitonholdpendingtheresolutionoftheclasscertificationissuesin
theSt.Johncase.
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