Settlement Motion Exhibit A: "Prospective Measures" Required By MSHA

(a) [American]{.underline} [Society]{.underline} [of]{.underline}
    [Mechanical]{.underline} [Engineers]{.underline}
    [Boiler]{.underline} [and]{.underline} [Pressure]{.underline}
    [Vessel]{.underline} [Code]{.underline}

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1.  All [new, year 1999-2000]{.underline} vessels are in accordance with
    the ASME Code. All boilers were constructed and are maintained in
    accordance with ASME Code.

2.  The revised Gramercy [Pressure]{.underline} [Systems]{.underline}
    [Control]{.underline} [Policy]{.underline} requires that maintenance
    of all pressure vessels and piping systems be in accordance with
    ASME Code.

3.  Gramercy still has viable and safe equipment in use that was built
    and installed in the mid to late 1950's period. Some of this
    equipment was not constructed in accordance with current ASME Code.
    Much of it was constructed as American Petroleum Institute (API)
    class. There were not requirements at that time to conform with ASME
    Code and it is not feasible to apply the Code now. However, critical
    sections of the Plant were reviewed following the July 5, 1999
    incident. It was found that certain heater vessels in HID and
    Evaporation had to be strengthened to meet the requirements of the
    new Gramercy operation. The vessels have been modified and the
    pressure ratings upgraded in accordance with professional
    engineering calculations. However, the older vessels do not have
    ASME codes.

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(b) Process Safety Management Programs (PSMP)

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1.  Gramercy has implemented the Operational Integrity Management System
    (OIMS) as its Process Safety Management Program. All 13 elements of
    Kaiser's OIMS Manual are being implemented:

-   Employee Participation

-   Operational Safety Information

-   Operational Hazard Analysis

-   Standard Operating Procedures

-   Training

-   Contractor Safety

-   Mechanical Integrity

-   Pre-Startup Safety Review

-   Safe Work Policies

-   Management of Change

-   Incident Investigation

-   Compliance Inspections

-   Emergency Response and Planning

(c) [Pressure]{.underline} [Relief]{.underline} [Safety]{.underline}
    [System]{.underline} [Design]{.underline} [Basis]{.underline}
    ([PRSSDE]{.underline})

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1.  The new Gramercy Digestion installation has been designed for
    [Three]{.underline} [Phrase]{.underline} flow (solids, liquids,
    vapors). The design was done by ICF Kaiser Engineers (Australia) who
    have proprietary programs to calculate all parameters and predict
    responses to process upsets.

2.  The Digestion relief system has been designed to relieve 120% of
    designed maximum flow for each tank in the case of a fully blocked
    condition and the relief headers have also been designed to
    accommodate 150% of maximum design flow.

3.  Additionally, pilot relief valves have been added to relieve at 90%
    MAWP, in order to reduce the potential frequency of opening the
    normal spring type relief valves.

4.  The new Digestion relief headers are sloped to facilitate drainage
    in the case of a relief valve opening. The new main headers are 42
    inches and 54 inches in diameter and should not be prone to
    plugging. There will also be a mandatory inspection program every 3
    -- 5 years and if required a clean out of the main headers will be
    done. The length of time between inspections will depend upon what
    is found in the initial inspection cycles. Temperature sensing
    devices have been placed in each relief header providing knowledge
    of relief valve lifts. Upon a lift, the cause will be determined and
    corrective action taken. If a sufficient number of significant
    events occurs, Kaiser will either run thermographic scans to
    determine if blockages have occurred or inspect the headers. In
    combination with the 3-5 yr mandatory inspection program, this
    process will be adequate to maintain the headers in operating
    condition***.*** Temperature indicators have been installed in the
    relief systems so that any leakage or opening of the relief valves
    can be immediately determined and the cause corrected.

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(d) [Valve]{.underline} [Supervision]{.underline} [Program]{.underline}

> Kaiser has updated all P&IDs for critical plant systems including
> identifying all valves. The engineering department's new pressure
> vessel engineer must approve any safety related valve modifications or
> changes, other than those included in normal operations. Kaiser's new
> Pressure Systems Control Policy, Section 6 ("the Blue Book") mandates
> specific policy and procedures, including audits to ensure compliance
> with company policy. The Blue Book is available for all employees and
> used in training. Kaiser has set up a relief valve tracking system
> that is set forth in Section 6 of its new Pressure Systems Control
> Policy. The digestion control room operator will be able to see the
> position of all process control valves from his video monitor.
> Moreover, the digestion control room operator will know the process
> flow path by the reaction of the process to the control valves.
> Further, Kaiser has a lock out/tag out system in place that will be
> used to identify any valves that have been adjusted for maintenance
> activities. The digestion shift supervisor has responsibility for the
> process and process safety and will delegate to the control room
> operator, as appropriate, tasks associated with process control and
> process safety***.***

(e) [Plant]{.underline}-[Wide]{.underline} [Evacuation]{.underline}
    [Alarm]{.underline} [System]{.underline} [(PEAS)]{.underline}

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1.  Gramercy has an alarm to evacuate the plant in the case of a toxic
    gas release (nearby Chlorine Plant). It is activated from the
    guardhouse at the main plant entrance. The plant has a radio system
    for backup. The digestion control room can communicate instantly
    with the guard house by telephone.

2.  Emergency response planning and training have been substantially
    improved, in coordination with the Louisiana State Policy and Parish
    Official. A plant wide system with both audio and visual
    notification, sourced from two locations with an emergency power
    backup will be investigated and a feasibility determination will be
    made.

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(f) [Emergency]{.underline} [Operating]{.underline}
    [Procedures]{.underline} [and]{.underline} [Training]{.underline}

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1.  Gramercy has just revised its major Standard Operating Procedures to
    include emergency shutdown procedures. Operators have and will
    continue to be trained and certified in these procedures.

2.  Gramercy will participate in an MSHA review of these procedures and
    will upgrade them as required for safe operations.

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(g) [Digestion]{.underline} [Area]{.underline} [Specific]{.underline}
    [Design]{.underline} [Features]{.underline}

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1.  As required by MSHA, all new Digestion pressure vessels have been
    designed such that normal operating pressures are well below the
    MAWP and have an adequate safety margin between their MAWP and
    operating pressure. The relief tank does not have an MAWP since it
    is an open top tank.

  ------------------------------- ------------------- -------------------
  [Tank]{.underline}              [Normal,            [MAWP,
                                  psig]{.underline}   psig]{.underline}

  Blow Off Tank                   0                   70

  No. 10 Flash Tank               8                   100

  No. 9 Flash Tank                14                  150

  No. 8 Flash Tank                22                  150

  No. 7 Flash Tank                38                  150

  No. 6 Flash Tank                55                  200

  No. 5 Flash Tank                75                  330

  No. 4 Flash Tank                100                 330

  No. 3 Flash Tank                140                 460

  No. 2 Flash Tank                195                 460

  No. 1 Flash Tank                270                 460
  ------------------------------- ------------------- -------------------

(h) [Digestion]{.underline} [Area]{.underline} [Specific]{.underline}
    [Operating]{.underline} [Procedures]{.underline}

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1.  Standard Operating Procedures and a Maintenance Program for
    Digestion are currently in place and available for employee and MSHA
    review. Kaiser will brief MAHA personnel on the new plant and
    operating systems and procedures, as well as make available for
    MSHA's review copies of its operating procedures and policies.

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(i) [Training]{.underline}

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1.  The Gramercy Plant's Pressure Systems Control Policy covers maximum
    allowable working pressures, Pressure Relief Systems, and hazards
    associated with non-functioning pressure relief systems.

2.  Special training sessions were conducted with supervisors,
    superintendents, and managers to ensure full understanding of this
    policy. Hourly employees receive this training as part of their
    orientation.

3.  The training will be reviewed to ensure there is sufficient coverage
    concerning hazards associated with non-functioning pressure relief
    systems.

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(j) [Safety]{.underline} [Showers]{.underline} [and]{.underline}
    [Eye]{.underline} [Wash]{.underline} [Stations]{.underline}
    [With]{.underline} [Self]{.underline}-[Contained]{.underline}
    [Water]{.underline} [Sources]{.underline}

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1.  A search was conducted in an effort to find commercially available
    self-contained safety showers and eye wash stations, but no
    commercially available sources were found. However, the new
    Digestion Unit will have a water booster pump that is connected to
    the emergency generator system that will provide safety water to the
    area even under conditions of a total power failure.

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(k) [Workplace]{.underline} [Examinations]{.underline}

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1.  Kaiser will conduct workplace examinations as required by MSHA
    standards and track them, and needed corrective actions, on the
    plant computer system.

\(l\) [Training]{.underline} [in]{.underline} [Miner's]{.underline}
[Rights]{.underline} [and]{.underline} [Responsibilities]{.underline}

1.  Kaiser will expand its training on employee rights and
    responsibilities regarding safety and health.

\(m\) [Safety]{.underline} [and]{.underline} [Health]{.underline}
[Inspections]{.underline}

1.  The Kaiser and USWA joint safety and health committee will perform a
    comprehensive safety and health audit of the Gramercy Works Facility
    no less than semi-annually, and report the results, in writing, to
    Kaiser and the USWA. Kaiser will respond to the audit results in
    writing within fifteen working days. For each item identified in the
    audit, Kaiser will state the date for abatement, the means of
    abatement, or the reasons why, in Kaiser's opinion, abatement is not
    necessary to protect employees or its infeasible. Copies of the
    response will be given to USWA. Kaiser will consider time spent on
    the audit and associated meetings to be hours worked. The first
    audit will commence within sixty days from the date of the
    settlement agreement and will include a review of Kaiser's plans for
    rebuilding the plant and resuming production. Subsequent audits will
    consider both existing hazards in the facility, and the safety and
    health implications of changes to equipment or operating procedures
    planned by Kaiser.

2.  \(n\) [Documentation]{.underline}

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1.  Kaiser has and will continue to respond to MSHA document requests
    regarding regulatory compliance. Kaiser agrees to report to MSHA by
    letter, every six months for eighteen months, a summary of status of
    its efforts and activities described in this Exhibit, starting six
    months after the approval of a settlement motion.