IMac Seagate HD replacement - What do Apple do with the old hard drives?

Hi
A relative has a 2009 iMac and his 1TB Seagate hard drive is covered by the replacement programme.  He is concerned what Apple will do with the hard drive when it is returned to them as he does not want any to access his personal items (like docs, photos and emails etc).
He is currently using ML and has everything backed up to an external hd.
He plans to reload Snow Leopard which originally came with his iMac.  Using the SL disc, it will give him the option before installing - in Disk Utility to wipe the HD (Gutmann Theory) x 35 times so a very secure wipe.  Is this over the top as going to take days to do this to a 1TB drive.  Are there any better ways to do this. 
We have an Apple store and Apple Premiem Reseller and Support Centre, but the reseller has a faster turnaround for repair.  Does anyone know what Apple do with faulty hard drives other than bin them?
Thanks in advance.
Matt

AppleMacCider wrote:
Does anyone know why Apple have removed the 35 x wipe from Lion and Mountain Lion other than it's an overkill.
Gutmann algorithm 35-pass secure erase is not available as an option from the GUI, but is still available from command line aka Terminal.
diskutil secureErase
Usage:  diskutil secureErase [freespace] level MountPoint|DiskIdentifier|DeviceNode
Securely erases either a whole disk or a volume's freespace.
Level should be one of the following:
        0 - Single-pass zeros.
        1 - Single-pass random numbers.
        2 - US DoD 7-pass secure erase.
        3 - Gutmann algorithm 35-pass secure erase.
        4 - US DoE 3-pass secure erase.
Ownership of the affected disk is required.
Note: Level 2, 3, or 4 secure erases can take an extremely long time.

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