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Sun, Feb 11, 2007

Hamilton Sundstrand To Pay $12M Fine In Pollution Case

Admits To Dumping Industrial Discharge Into Farmington River

Aerospace manufacturer Hamilton Sundstrand pleaded guilty Thursday to two counts of violating the Federal Clean Water Act, admitting to dumping industrial discharge into the Farmington River from its Windsor Locks, CT, plant.

Business Week reports Hamilton Sundstrand offered to settle the case for $12 million. A federal judge will decide whether to accept the plea agreement and impose the sanctions on April 27. The company designs and manufactures environmental control, life support and other systems for a variety of space applications, including the space shuttle orbiters and the International Space Station.

In a binding plea agreement filed with the US District Court, Hamilton Sundstrand agreed to be placed on probation for five years and to pay a fine in the amount of $1 million. Other penalties, contributions to environmental programs and facility upgrades increase the company's payout to about $12 million.

Federal prosecutors assert the company exceeded government-set levels for discharge of hexavalent chromium between 2001 and 2003 and also altered documents to conceal the violations.

Hamilton Sundstrand was also accused of knowingly dumping tens of thousands of gallons of wastewater contaminated with copper into the Farmington River in September 2003.

Gina McCarthy, commissioner of the state Department of Environmental Protection (DEP), said there are no long-term impacts on the environment or drinking water supplies from the discharges of the chromium and copper, both toxic substances used in metal finishing work.

US Attorney Kevin O'Connor called the $12 million in fines and contributions one of the largest settlements of a pollution case ever in Connecticut. He declined to say whether any company employees will be charged, but noted the investigation is continuing.

"I think what today's convictions demonstrate is that state DEP, the federal EPA, and the US attorney's office believe that this type of conduct is downright criminal and we will continue to prosecute it aggressively," O'Connor said.

Hamilton Sundstrand which makes space suits and aircraft operating systems, said that it is now in full compliance with environmental laws.

"Hamilton Sundstrand is committed to environmental leadership that goes beyond mere compliance," the company said. "Clearly we did not live up to our standards in this instance. We regret this failure and will take all necessary steps so such events never happen again."

At its headquarters in Windsor Locks, Hamilton Sundstrand manufactures aircraft, spacecraft and marine control systems and components, and in the process generates various metal finishing and parts-testing wastewaters that contain toxic pollutants, including chromium and copper.

In addition to the $1 million fine, Hamilton Sundstrand also agreed to other measures, including contributing $500,000 to the Connecticut Statewide Supplemental Environment Programs (SEP) Account to fund ecosystem management projects in the Farmington River Basin. The aerospace company will make a separate $2 million contribution to the Connecticut Statewide SEP Account, to be used to address the water quality impacts caused by farmland application of surplus manure from dairy farms.

Hamilton Sundstrand also agreed to reduce its emissions of carbon dioxide, carbon monoxide, nitrogen oxides, and sulfur dioxide by installing and operating a 5.4 megawatt modern gas turbine heat and power facility by July 1, 2011.

In all, the environmental upgrades and improvements are expected to cost Hamilton Sundstrand approximately $5,600,000. If the costs come in lower, Hamilton Sundstrand has agreed to pay the difference to the Connecticut Statewide SEP Account.

Hamilton Sundstrand has also agreed to submit regular progress reports to the Government and CT DEP and to institute a strict environmental compliance and training program. These include a regular certification by the president of Hamilton Sundstrand that the company is in compliance with the requirements of the Clean Water Act.

FMI: www.hamiltonsundstrandcorp.com, www.utc.com

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