Part II  iteM 7 Management’s Discussion and analysis of Financial Condition and results of operations Climate Change recently adopted and issued accounting  pronouncements and regulatory items 31 FMC Corporation    2010 Form 10K See Note 2 to our consolidated financial statements included in this  Form 10-K. Energy use is a major cost component of our Alkali Chemicals business,  leading to significant focus on reducing all forms of energy. The Alkali  division has continued to make investments to lower energy intensity (e.g.  co-generation, solution mining). As one of the division’s key performance  indicators, we measure and review monthly the amount of BTUs/ton  of soda ash produced. In 2010, the soda ash business engaged a third  party consultant to assist in identifying new methods to reduce energy  usage. This effort has proven successful as we have lowered the energy  We have considered the potential physical risks to FMC facilities and  operations and the indirect consequences of regulation or business  trends as a result of potential future climate change. Because of the many  variables, not only with respect to the science, but also with respect to  the nature and effect of future global climate change regulation itself, it  is impossible to predict in any meaningful way what type of property  damage or disruptions to our operations or indirect consequences might  result from future climate change. A significant source of greenhouse gas emissions at Green River are process  emissions. That is, a significant portion of the greenhouse gases released  during the mining and processing of soda ash occurs naturally in the  trona ore feedstock. Unlike the situation with energy efficiency, where  efficiencies may result in a reduction of greenhouse gases, the amount  of greenhouse gases present in the trona ore cannot be reduced. All of  the companies producing natural soda ash have such process emissions.  Yet, the lower energy intensity of natural soda ash provides a favorable  carbon intensity compared with synthetic soda ash produced throughout  the rest of the world. At this point our U.S. facilities are not subject to any state or regional  greenhouse gas regulation that limits or imposes fees on current emissions,  and our foreign operations outside of Europe and Canada are not subject  to national or local greenhouse gas regulation. Although some of our  European and Canadian operations may be subject to greenhouse gas  regulation, the cost to these facilities has not been and is not expected to  be significant, and effect of European Union and Canadian greenhouse  gas regulation has not been and is not expected to be material to FMC. Because of the many variables, it is premature to make any estimate of  the costs of complying with un-enacted federal climate change legislation  or as yet un-implemented federal regulations in the United States. We have been following legislative and regulatory developments regarding  climate change because the regulation of greenhouse gases, depending on  their nature and scope, could subject some of our manufacturing operations  to additional costs or limits on operations. On December 29, 2009,  EPA’s Mandatory Reporting of Greenhouse Gases Rule became effective.  This rule requires FMC to collect information regarding greenhouse gas  emissions from our large sources and report them beginning in 2011. Our  Alkali Chemicals Division mines and processes trona ore into soda ash  and related products at our facilities near Green River, Wyoming. This  activity constitutes most of FMC’s greenhouse gas emissions globally.  We will report to the EPA under the Greenhouse Gas reporting rule  approximately 1.6 million metric tons of direct emissions from these  operations for 2010. In addition, two plants in our BioPolymer business  will also be required to report emissions above the EPA’s reporting  threshold, but each plant’s emissions are substantially less than at our  Green River facilities, in total less than 0.1 million metric tons. It is not possible at this time to predict whether or when Congress may  enact climate change legislation in the United States or what provisions  might be included in the final legislation. In the absence of federal  climate change legislation, the EPA has moved forward with a finding  of “endangerment” and a promulgated “tailoring rule” to apply the  Prevention of Significant Deterioration (PSD) provisions of the Clean  Air Act to greenhouse gas emissions. This rule is being challenged in  court, and there may be bills introduced in Congress to withdraw EPA’s  authority to regulate greenhouse gases under the Clean Air Act while  Congress considers enactment of federal legislation. In addition, soda ash is an essential raw material in the production of  glass of all kinds. Climate change, energy intensity and alternative forms  of energy will drive increased production of new forms of glass (lower  emissivity glass, solar panel glass, etc.) and will increase the need for this  essential raw material from FMC. The soda ash industry has an interest  in assuring that climate change legislation or regulation recognizes the  benefits of soda ash (particularly natural soda ash) and the challenges  facing this industry in controlling its greenhouse gas emissions. We have certain other contingent liabilities arising from litigation,  claims, performance guarantees and other commitments incident to the  ordinary course of business. Based on information currently available and  established reserves, the ultimate resolution of our known contingencies,  including the matters described in Note 18 to our consolidated financial  statements included in this Form 10-K, is not expected to have a material  adverse effect on our consolidated financial position or liquidity. However,  there can be no assurance that the outcome of these contingencies will  be favorable, and adverse results in certain of these contingencies could  have a material adverse effect on our consolidated financial position,  results of operations or liquidity. In late June 2004, we were served in a lawsuit captioned “Lewis et al  v. FMC Corporation”, which was filed in United States District Court  for the Western District of New York. The suit was brought by thirteen  residents of Middleport, New York who allege that we violated certain state  and federal environmental laws and seeks injunctive relief and monetary  damages for personal injuries and property damage in connection with  such alleged violations. A motion for summary was filed by the Company  in 2007 and is expected to be decided in 2011. We believe this suit is  without merit, and therefore have not established a reserve for it. The Alkali Chemicals Division currently sells products (soda ash, sodium  bicarbonate, ground trona) used in environmental scrubbing applications.  Federal regulations require utilities and industrial plants to reduce emissions,  particularly at coal fired power plants where FMC’s products are sold.  Stiffer regulations are expected to be implemented in the near future  (Clean Air Interstate Rule, Maximum Achievable Control Technology  and National Ambient Air Quality Standards) that will increase the need  for these products. The uncertainty of final climate change legislation will  likely lead to existing coal fired utility plants remaining in existence for  a longer period of time, sustaining demand for these products. needed per ton of output over the last 6 months and have a management  system in place to sustain and build on the methodologies put in place.