Bayou Steel Corporation - Environmental

In addition to meeting demands for price, quality and financial performance, Bayou Steel offers its customers, stockholders and stakeholders the confidence of being supported by an organization whose environmental management systems (EMS) are unparalleled in the industry. Bayou Steel was the first electric arc furnace steel-making operation in the United States to receive certification for its EMS. Bayou Steel is also a leader on environmental matters in the communities in which we operate. We would like to tell you about Bayou Steel’s approach to protecting the environment.

POLICIES

Environmental Policy Statement

It is the policy of Bayou Steel Corporation to effectively perform all activities in order to meet environmental quality objectives. The Company’s objectives for environmental quality are:

  •  to protect public health and the environment through pollution prevention and continual improvement of our operations;

  •  to exceed the requirements of relevant environmental legislation and regulations;

  •  to regularly review progress toward environmental targets and goals, and;

  •  to be recognized as a good corporate citizen.

Environmental Policy

Community Information Policy

Bayou Steel Corporation and its subsidiaries (the "Company") recognize that good corporate citizenship is essential to our continued success. Bayou Steel also recognizes that its neighbors or concerned citizens may have questions or concerns about the plant or its operations. To respond to public concerns and to facilitate an open relationship with our neighbors, Bayou has established a citizen's information policy.

Lynn Bergeson, Esq., independent legal counsel, has been designated as the information line operator. All calls to the information line are answered by a dedicated voice mail, accessible only by Ms. Bergeson. The information number is accessible 24 hours a day, seven days a week.

THE INFORMATION LINE NUMBER IS: 1-800-BSC-9990

(1-800-272-9990)

Citizens calling the information line will have up to two minutes to describe a problem, raise a concern or otherwise communicate with Bayou. If requested by the caller, Ms. Bergeson will call back to obtain more information. Citizens asking Ms. Bergeson to return their call should leave their name and a telephone number along with their call-back request.

When a citizen's call is received, Ms. Bergeson will generate a report that includes a case number and a summary of all the known facts. Ms. Bergeson will refer the report to the appropriate Company official for appropriate follow-up. All inquiries and/or requests will be promptly and thoroughly processed. Citizens may follow up on the progress of the report by calling the and referencing their case number. When the investigation is completed, the results of the investigation will be provided to Ms. Bergeson. If requested, Ms. Bergeson will provide the results of the investigation to the caller.

In addition to the main information line citizens may also use the following dedicated telefax number to communicate with Bayou:

THE LOCAL TELEFAX LINE NUMBER IS: 985-652-0373

Citizen faxes will be addressed in the same manner as described above. A report that includes a case number will be generated that includes a case number and a summary of all the known facts. The report will then be circulated to the appropriate Company official for appropriate follow-up. All reports will be promptly and thoroughly processed. If requested, Bayou Steel will provide the results of the inquiry to the caller.

Safety and Hygiene Policy

PROGRAMS

Environmental Management System

Bayou Steel’s environmental management system (EMS) conforms to the framework endorsed by the International Organization for Standards (ISO). In May of 1999 Bayou Steel’s LaPlace, Louisiana steel-making facility became the first electric arc furnace steel manufacturer to attain ISO 14001 certification. It is the goal of the Company to have the Harriman, Tennessee facility certified in 2000. Element of the EMS include management commitment; operating procedures that go beyond compliance; self assessment and goal setting, independent assessment and continuous improvement.

Louisiana Environmental Leadership Program

The Louisiana Environmental Leadership Program (LELP) is a voluntary program designed to encourage pollution prevention. As part of the program, Bayou Steel has reduced contact and sanitary wastewater discharges to zero and over 99.9% of all hazardous waste generated is recycled. The Company continues to strive for zero waste by establishing a recycling operation that is planned to reduce our largest solid (non-hazardous) waste stream by 20% for the next four years.