Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-04184/USCOURTS-cand-3_06-cv-04184-6/pdf.json

Nature of Suit Code: 893
Nature of Suit: Environmental Matters
Cause of Action: 42:7604 Clear Air Act (Emission Standards)

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CONSENT DECREE 

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HELEN KANG (State Bar No. 124730) 

ALAN RAMO (State Bar No. 63425) 

BRENT PLATER (State Bar No. 209555) 

Environmental Law and Justice Clinic 

Golden Gate University School of Law 

536 Mission Street 

San Francisco, California 94105 

Tel: (415) 442-6647, Fax: (415) 896-2450 

E-mail: hkang@ggu.edu; aramo@ggu.edu; bplater@ggu.edu 

ADRIENNE L. BLOCH (State Bar No. 215471) 

PHILIP HUANG (State Bar No. 230115) 

Communities for a Better Environment 

1440 Broadway, Suite 701 

Oakland, California 94612 

Tel: (510) 302-0430; Fax: (510) 302-0438 

E-mail: abloch@cbecal.org; phuang@cbecal.org 

Attorneys for Plaintiff 

COMMUNITIES FOR A BETTER ENVIRONMENT 

STANZLER FUNDERBURK & CASTELLON LLP 

Ruben A. Castellon (Bar No. 154610) 

Ross H. Hirsch (Bar No. 204320) 

180 Montgomery Street, Suite 1700 

San Francisco, California 94104 

Telephone: (415) 677-1450; Facsimile: (415) 677-1476 

GORDON, WATROUS, RYAN, LANGLEY, BRUNO & PALTENGHI 

Bruce C. Paltenghi (Bar No. 83918) 

611 Las Juntas Street, P.O. Box 630 

Martinez, California 94553 

Telephone: (925) 228-1400; Facsimile: (925) 228-3644 

Attorneys for Defendant 

PACIFIC STEEL CASTING COMPANY 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

COMMUNITIES FOR A BETTER 

ENVIRONMENT, a California nonprofit 

corporation; 

 

 Plaintiff, 

 v. 

PACIFIC STEEL CASTING CO., 

 Defendant. 

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Case No.: C 06 4184 BZ 

CONSENT DECREE 

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CONSENT DECREE 

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I.

 WHEREAS, Plaintiff Communities for a Better Environment (“CBE”) has filed this 

action against Pacific Steel Casting Co. (“Pacific Steel”); 

 WHEREAS, CBE’s allegations are set forth in its Complaint filed with this Court on July 

6, 2006; 

 WHEREAS, CBE alleges that Pacific Steel has violated and is in violation of emissions 

limitations and reporting requirements set forth in Pacific Steel’s Synthetic Minor Operating 

Permit (“SMOP”), which the Bay Area Air Quality Management District (“BAAQMD”) issued 

in December 2002, covering, among others, Pacific Steel’s Plant 3 steel foundry operations in 

Berkeley, California (“Facility”); 

 WHEREAS, CBE alleges that the SMOP’s emission limitations cover emissions from 

Source 14 and Source 18 at Plant 3; 

 WHEREAS, CBE contends that pouring and cooling operations are part of Source 14; 

 WHEREAS, Pacific Steel has denied the material allegations of CBE’s Complaint, and 

this Consent Decree does not constitute an admission of liability by Pacific Steel; 

 WHEREAS, in October 2006 Pacific Steel installed a carbon adsorption system at Plant 

3, which is targeted to reduce emissions from pouring and cooling operations at Plant 3; 

 WHEREAS, the parties have agreed that settlement of this matter is in the public interest 

and that entry of this Consent Decree without further litigation is the most appropriate way to 

resolve this action; 

 THEREFORE, IT IS ORDERED, ADJUDGED, AND DECREED as follows: 

JURISDICTION AND PARTIES BOUND 

1. This Court has jurisdiction over the subject matter of this action and over the parties 

pursuant to section 304 of the Clean Air Act (the “Act”), 42 U.S.C. § 7604, and 28 U.S.C. 

§§ 1331, 2201, and 2202. 

2. Venue is proper in this Court pursuant to 28 U.S.C. § 1391(b) and 42 U.S.C. 

§ 7604. 

3. CBE’s Complaint states claims upon which relief can be granted against Pacific 

Steel pursuant to section 304 of the Act, 42 U.S.C. § 7604; CBE provided adequate notice of the 

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CONSENT DECREE 

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II.

claims alleged in its Complaint pursuant to section 304 of the Act, 42 U.S.C. § 7604(b); and this 

Court determined in September 2006 that CBE has standing to bring this suit. Pacific Steel 

consents to, and shall not challenge entry of, this Consent Decree or this Court’s jurisdiction to 

enter, enforce, modify, or terminate this Consent Decree. 

4. This Consent Decree shall apply to, and be binding upon the parties and each of 

their respective directors, successors, and assigns. 

5. To the extent that the Consent Decree is in force and not otherwise terminated, if 

Pacific Steel transfers any majority ownership interest or right to operate the Facility, including 

but not limited to the sale, lease, or licensing of others to operate all or part of the Facility, 

Pacific Steel shall give notice of this Consent Decree to any successor in interest prior to the 

closing date of such transfer. Pacific Steel shall send a copy of such written notification to CBE 

no later than one week following the closing date of such sale or transfer. Upon sale or transfer 

of the Facility, Pacific Steel shall attach a copy of this Consent Decree to the agreement by 

which the Facility is sold or transferred, and shall make performance of Pacific Steel’s 

obligations under this Consent Decree an obligation of any purchaser or transferee to the extent 

that the Consent Decree is in force and not otherwise terminated. Transfer of ownership of the 

Facility will not relieve Pacific Steel from the obligations of this Consent Decree that are 

applicable to it. 

DEFINITIONS 

6. “Allowed Reductions” mean reductions of (1) PM or HAP emissions, (2) VOC 

emissions resulting from the use of binders, including Pep Set I or Pep Set II, or (3) emissions 

covered by either of the two categories above resulting from any of the following projects: 

installation of a hood or other venting unit tied into the pre-existing carbon adsorption unit in 

Plant 3 to capture and/or reduce emissions generated in the mold mixing area; upgrading the 

baghouse and/or baghouse collection system for the electric arc furnace (EAF) in Plant 1; or, 

where Pacific Steel expends funds to research and test alternative binders for mold-making at the 

Facility and where BAAQMD permits the use of such binders at the Facility. 

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III.

7. “Effective Date” means the date of entry of the Consent Decree by the Clerk of the 

United States District Court for the Northern District of California. 

8. “Facility” means Pacific Steel’s steel foundry, located on Second Street just south 

of Gilman Avenue near Highway 80 in an area known as West Berkeley, and includes all three 

plants at this location: Plant 1 (a.k.a. “Facility No. 187”), Plant 2 (a.k.a. “Facility No. 703”) and 

Plant 3 (a.k.a. “Facility No. 1603”), and all sources of emissions from the Facility. 

9. “HAP” means any hazardous air pollutant listed in or pursuant to section 112(b) of 

the Clean Air Act, 42 U.S.C. § 7412(b), or any Toxic Air Contaminant identified under Cal. 

Health & Safety Code § 39656. 

10. “West Berkeley” refers to an area within the city of Berkeley, CA bounded by San 

Pablo Avenue (including both sides of the Avenue) to the East, and the Eastshore Freeway to the 

West. 

INJUNCTIVE RELIEF—SCRAP METAL SELECTION AND INSPECTION 

11. Beginning within 30 days of the Effective Date, Pacific Steel shall comply with the 

certification requirements in Paragraph 12 or prepare and implement a plan for the selection and 

inspection of scrap according to the requirements in Paragraph 13. 

12. Pacific Steel shall operate at all times according to a written certification that the 

Facility purchases and uses only metal ingots, pig iron, slitter, or other materials that do not 

include post-consumer automotive body scrap, post-consumer engine blocks, post-consumer oil 

filters, oily turnings, lead components, mercury switches, plastics, or organic liquids. Such 

certifications shall be maintained on site for at least five years. The written certification plan 

prepared by Pacific Steel is attached hereto as Exhibit A. 

13. Pacific Steel shall operate at all times according to a written plan for the selection 

and inspection of iron and steel scrap to minimize, to the extent practicable, the amount of 

organics and HAP metals in the charge materials used by the Facility. The written plan prepared 

by Pacific Steel is attached hereto as Exhibit B and is incorporated herein. Pacific Steel must 

keep a copy of the plan onsite and readily available to all plant personnel with materials 

acquisition or inspection duties. Pacific Steel must provide a copy of the material specifications 

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to each of Pacific Steel’s scrap vendors. Each plan shall include the information specified in 

Paragraphs 13(a) through (c) below: 

a. A materials acquisition program to limit organic contaminants: For scrap 

charged to a scrap preheater, electric arc metal melting furnace, or electric induction metal 

melting furnaces, specifications for scrap materials to be depleted (to the extent practicable) of 

the presence of used oil filters, plastic parts, organic liquids, and a program to ensure the scrap 

materials are drained of free liquids; 

b. A materials acquisition program specifying that the scrap supplier remove 

accessible mercury switches from the trunks and hoods of any automotive bodies contained in 

the scrap and remove accessible lead components such as batteries and wheel weights. Pacific 

Steel shall obtain and maintain onsite a copy of the procedures used by the scrap supplier for 

either removing accessible mercury switches or for purchasing automobile bodies that have had 

mercury switches removed, as applicable. 

c. Procedures for visual inspection of a representative portion, but not less than 

10 percent, of all incoming scrap shipments to ensure the materials meet the specifications. 

i. The inspection procedures shall identify the location(s) where 

inspections are to be performed for each type of shipment. The selected location(s) shall provide 

a reasonable vantage point, considering worker safety, for visual inspection. 

ii. The inspection procedures shall include recordkeeping requirements that 

document each visual inspection and the results. 

iii. The inspection procedures shall include provisions for rejecting or 

returning entire or partial scrap shipments that do not meet specifications and limiting purchases 

from vendors whose shipments fail to meet specifications for more than three inspections in one 

calendar year. 

14. Pacific Steel shall comply with the recordkeeping requirements of the written plan. 

Records shall be maintained on site for at least five years. 

INJUNCTIVE RELIEF—EMISSIONS REDUCTIONS 

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15. Within 30 days of the Effective Date, Pacific Steel shall establish a reserve fund in 

the amount of $350,000 for Allowed Reductions. 

a. The funds shall only be used to achieve and maintain Allowed Reductions 

totaling at least two tons as set forth below: 

i. The Allowed Reductions shall be measured from the initial emissions 

level reflected in an initial emissions inventory report existing as of the 

Effective Date. The initial emissions inventory shall be calculated or 

estimated based on applicable mass balanced-based calculation or EPA or 

BAAQMD-approved emissions factors, or if no such emission factor 

exists an emission factor that is used to reliably estimate emissions based 

upon material throughput. Within 10 days of the Effective Date, Pacific 

Steel shall identify in writing and/or provide to CBE a copy of the initial 

emissions inventory report for purpose of determining compliance with 

this subparagraph. 

ii. The total reductions shall be calculated by using the above mass balance 

approach or multiplying the throughput of material by the applicable 

emissions factor. 

iii. Pacific Steel shall provide the calculations of the reductions from 

proposed expenditures of the funds to the Joint Consultation Committee in 

the manner provided in Paragraph 18. 

b. Emissions/toxic substance reductions resulting from reduced steel 

production or loss of business shall not be counted towards the required two-ton reduction 

specified in Paragraph 15 and shall not be credited against the fund. Notwithstanding the above, 

for purposes of calculating total reductions pursuant to Paragraph 15(a)(ii), material throughputs 

shall be calculated at the same amounts and rates, as applicable, as those throughputs used to 

generate the initial emissions inventory set forth in Paragraph 15(a)(i). 

c. The funds may be used for Allowed Reductions from any plant at the 

Facility. 

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d. The funds shall not be used or credited for emissions/toxic substance 

reduction expenditures if: 

i. The expenditure has been approved by Pacific Steel’s Board of 

Directors on or before November 21, 2006; 

ii. The expenditure is as a result of a project or activity which has been 

specifically identified in writing by the BAAQMD as required to be undertaken by Pacific Steel 

on or before November 21, 2006; 

iii. The expenditure is already required by existing statute or regulation; or 

iv. The expenditure arises from implementation of a settlement with the 

BAAQMD in separate pending litigation; 

e. Expenditures incurred before the Effective Date are entitled to be credited to 

the fund, provided Pacific Steel has participated in the meet and confer process with the Joint 

Consultation Committee described in Paragraph 18. 

16. Within 30 days of the three-year anniversary of the Effective Date and subject to 

Paragraph 17, Pacific Steel shall make a payment to the Rose Foundation for all of the reserve 

fund that remains (i.e., have not been spent pursuant to Paragraph 15) for projects in West 

Berkeley that are consistent with Paragraph 15(d). Pacific Steel shall include with the payment a 

cover letter, with a copy to CBE, stating the amount of the payment and enclosing a copy of this 

Consent Decree, with a reference to this Paragraph. 

17. In the event that either the City of Berkeley or BAAQMD has not issued a permit 

for projects or activities to achieve Allowed Reductions submitted within two years of the 

Effective Date, due to no fault of Pacific Steel, the date by which Pacific Steel is required to 

make the payment to the Rose Foundation specified in Paragraph 16 shall be extended for a 

period of one year. The parties agree to negotiate in good faith regarding further extensions to 

accommodate delays due to no fault of Pacific Steel. Upon Pacific Steel’s request, CBE will 

write a letter to the City of Berkeley and/or BAAQMD, stating, if applicable, that the Joint 

Consultation Committee has recommended the project or activity and that it is consistent with 

this Decree. 

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V. INJUNCTIVE RELIEF—ESTABLISHING CONSULTATION COMMITTEE 

18. To promote the health of the West Berkeley community and Pacific Steel’s 

employees, and to recommend reserve fund expenditures and projects that achieve the greatest 

possible pollution reductions, Pacific Steel, the Glass, Molders, Plastics, and Pottery Workers 

International Union, Local 164B, and CBE shall establish a Joint Consultation Committee to 

meet and confer in good faith to consider new methods for emissions/toxic substance reductions 

(e.g., improving baghouse maintenance and design, implementing new technologies at the 

Facility, reducing toxins in mold coating operations, implementing non-toxic binder materials, 

etc.). (Although the Union is not a party to this Decree, the Union has agreed to be part of the 

Joint Consultation Committee.) Any recommendations made by the Joint Consultation 

Committee are advisory and shall not be binding upon Pacific Steel. 

a. The Joint Consultation Committee shall include no more than two 

representatives each from Pacific Steel, CBE, and the Glass, Molders, Plastics, and Pottery 

Workers International Union, Local 164B. 

b. The Joint Consultation Committee may meet on a quarterly basis subject to 

reasonable advance notice of no less than one month at the request of CBE or Pacific Steel, and a 

meeting shall not be unreasonably refused by either party. 

c. Joint Consultation Committee meetings may begin prior to the Effective 

Date. 

d. Joint Consultation Committee meetings may begin before any reserve fund 

is allocated for Allowed Reductions. 

e. Pacific Steel will disclose to the Joint Consultation Committee any and all 

records and reports Pacific Steel is required to create by the BAAQMD and documents 

demonstrating the emission factors proposed to be used for the calculation of the reductions 

pursuant to Paragraph 15. Disclosure will occur in a reasonable time before joint consultation 

committee meetings so that members can review the documents before the meeting. Pacific 

Steel may designate such disclosures Confidential or Highly Confidential as appropriate on a 

case-by-case basis. CBE may challenge Pacific Steel’s confidentiality designations pursuant to 

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VI.

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the Court’s Stipulated Protective Order, Paragraph 6.1-6.3. Confidential and Highly 

Confidential materials may be shared only with CBE’s employees, consisting of in-house 

counsel, officers, directors, experts (subject to limitations set forth in a letter from CBE to 

Pacific Steel’s counsel dated January 22, 2007), and the attorneys of record in this action, if CBE 

determines disclosure of such information to those attorneys is necessary. 

INJUNCTIVE RELIEF—SITE INSPECTIONS 

19. Pacific Steel shall provide a CBE staff person and/or CBE’s expert consultant with 

access to the Facility for site inspection for the purpose of monitoring the progress of the 

construction or implementation, as the case may be, of the emission mitigation projects covered 

by Paragraph 15 and the plan for inspection and selection of scrap metal, subject to reasonable 

advance notice. Such visit shall last no more than two (2) hours, to run from the time CBE 

enters the Facility. CBE shall seek permission from Pacific Steel or from the Court for more 

than three (3) such visits per year. 

20. Pacific Steel shall make available for inspection and review by the CBE staff 

person and/or CBE’s expert consultant any and all records and reports which the BAAQMD has 

required or requires Pacific Steel to generate and maintain. Any such inspection may be 

monitored, at the discretion of Pacific Steel, by up to two employees or representatives. CBE 

shall seek permission from Pacific Steel or from the Court for more than four (4) such reviews 

per year. To the maximum extent practicable, CBE shall make such reviews coincident with the 

meetings with the Joint Consultation Committee. 

ATTORNEY FEES AND COSTS 

21. Within 30 days of the Effective Date, Pacific Steel shall pay CBE $150,000, 

representing its reasonable attorneys’ fees of $115,000 and costs of $35,000. 

VIII. DISPUTE RESOLUTION 

22. A party shall notify the other party of any alleged violation of this Consent Decree 

and shall request to confer with the other party to resolve any dispute through the Joint 

Consultation Committee established in Paragraph 18, which shall meet no later than 30 days 

from the date written notice of the dispute is provided. If the dispute is not resolved after 60 

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days from the date written notice of the dispute is provided, either party may seek enforcement 

of this Consent Decree before this Court. 

IX. GENERAL MUTUAL RELEASE 

23. CBE generally releases and discharges Pacific Steel, its officers, directors, 

employees, shareholders, and its attorneys from any and all claims, both known and unknown, 

that CBE may have accrued as of the Effective Date against Pacific Steel its officers, directors, 

employees, shareholders, and/or its attorneys that relate to any violation of any law, duty, permit, 

or regulation that applies to Pacific Steel or its attorneys’ operations. Pacific Steel generally 

releases and discharges CBE, its officers, directors, employees, and its attorneys from any and 

all claims, both known and unknown, that Pacific Steel may have accrued as of the Effective 

Date against CBE and/or its attorneys that relate to any violation of any law, duty, permit, or 

regulation that applies to CBE or its attorneys’ operations. The parties acknowledge that they 

have had the benefit of legal counsel, and have been advised of, understand and knowingly and 

specifically waive their rights under California Civil Code § 1542, which provides as follows: 

A general release does not extend to claims which the creditor does not know or 

suspect to exist in his favor at the time of executing the release, which if known 

by him must have materially affected his settlement with the debtor. 

Notwithstanding these general mutual releases, this Paragraph shall not prevent a party from 

seeking to enforce the terms of this Decree in the event of a breach of the Decree by the other 

party. 

X. DURATION 

24. The parties agree that the Court may close this case administratively after it enters 

this Consent Decree, but the Court will retain jurisdiction to resolve disputes under or to enforce 

this Consent Decree. This Consent Decree shall expire upon expenditure of the reserve fund or 

where the reserve fund remains on the three-year anniversary of the Effective Date subject to 

Paragraph 15 or the fourth-year anniversary of the Effective Date, whichever is sooner, pursuant 

to Paragraph 17. Notwithstanding the termination of the Consent Decree, 

a. Pollution control changes or requirements adopted pursuant to this Consent 

Decree will continue in effect, except where (1) there is a change in law or 

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administrative regulation; or (2) there is a significant, material change in the 

nature of the facility’s operations which would render the requirement of the 

specific pollution controls unjust or inequitable; and 

b. The Court will retain jurisdiction to enforce this Paragraph and Paragraphs 11-14

and 18(e) 

XI. ENTRY OF DECREE 

25. The parties acknowledge that this Consent Decree may not be entered by the Court 

until 45 days after it is received by the United States Attorney General and the Administrator of 

the United States Environmental Protection Agency pursuant to section 304(c)(3) of the Act, 42 

U.S.C. § 7604(c)(3). CBE shall promptly undertake such service after this Consent Decree is 

executed by the parties. The parties hereby agree that this Court may enter this Consent Decree 

without further consent from either party after the 45-day period expires, and that the parties 

may not withdraw from the Consent Decree for any reason. After the expiration of the 45-day 

period, any party to this Consent Decree may file an unopposed request that the Court enter this 

Consent Decree or the Court may enter the Decree on its own motion. 

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XII. MISCELLANEOUS 

26. All notices or copies of documents required to be provided by this Decree shall be 

addressed and mailed as follows: 

Plaintiff: Adrienne L. Bloch 

 Communities for a Better Environment 

 1440 Broadway, Suite 701 

Oakland, CA 94612 

 

 Helen Kang 

Environmental Law and Justice Clinic 

Golden Gate University School of Law 

 536 Mission Street 

San Francisco, CA 94105 

 Defendant: Ruben A. Castellon 

Stanzler, Funderburk & Castellon LLP 

180 Montgomery Street, Suite 1700 

San Francisco, California 94104 

27. This Consent Decree contains the entire agreement between the Parties. This 

Consent Decree may not be enlarged, modified, or altered unless such modifications are made in 

writing and approved by all parties and the Court. 

IT IS SO ORDERED this __________ day of ______________ 2007. 

_______________________________ 

Bernard Zimmerman 

United States Magistrate Judge 

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16th March

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

IT IS SO ORDERED

Judge Bernard Zimmerman

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PACIFIC STEEL CASTING COMPANY 

WRITTEN CERTIFICATION 

• Pacific Steel Casting Company will purchase and use only metal ingots, pig 

iron, slitter, or other materials that do not include post-consumer automotive 

body scrap, post-consumer engine blocks, post-consumer oil filters, oily 

turnings, lead components, mercury switches, plastics, or free organic 

liquids. 

• Vendor Notification

o As part of this Certification, PSC shall notify each scrap vendor, in 

writing, that any deliveries of scrap material to PSC shall not include postconsumer automotive body scrap, post-consumer engine blocks, postconsumer oil filters, oily turnings, lead components, mercury switches, 

plastics, or free organic liquids. 

o Each Request For Quote (RFQ) and Purchase Order (PO) provided to a 

scrap vendor shall include, in writing, a list of the above-noted items 

which shall not be included in delivered scrap. 

o PSC shall maintain the vendor notifications on site for five (5) years. 

• Visual Inspection of All Incoming Scrap

 All scrap deliveries to PSC must be visually inspected according to 

the procedures outlined in the Scrap Metal Selection and 

Inspection Plan, a copy of which is attached hereto. 

• Recordkeeping

 The recordkeeping requirements are specified in the Scrap 

Metal Selection and Inspection Plan.

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Exhibit A

Case 3:06-cv-04184-BZ Document 65 Filed 03/16/07 Page 15 of 18
PACIFIC STEEL CASTING COMPANY 

SCRAP METAL SELECTION 

AND INSPECTION PLAN 

• Material Acquisition Plan

 PSC shall notify each scrap vendor, in writing, that any deliveries 

of scrap material to PSC shall not include post-consumer 

automotive body scrap, post-consumer engine blocks, postconsumer oil filters, oily turnings, lead components, mercury 

switches, plastics, or free organic liquids. 

 Each Request For Quote (RFQ) and Purchase Order (PO) provided 

to a scrap vendor shall include, in writing, a list of the above-noted 

items which shall not be included in delivered scrap. 

 PSC shall maintain the vendor notifications on site for five (5) 

years. 

• Visual Inspection of All Incoming Scrap

 All scrap deliveries to PSC must be visually inspected (at least 10% of 

the shipment must be inspected from a vantage point that is amenable to 

inspection -- e.g., dumped onsite at PSC or on delivery vehicle) to make 

sure that each delivery does NOT contain the following:

• Automotive Body Scrap 

• Engine Blocks

• Lead Components

• Mercury Switches

• Plastic Parts

• Free Organic Liquids

• By-Products

• Cans

• Cylinders

• Used oil filters and other lubricants

• Dirt

• Galvanized, I-Beam, paint, pipe, skeleton, tubing or turning

 Any scrap shipment that includes any amount of the above prohibited 

materials shall be rejected in part or in whole. Any rejected scrap 

shipment remaining on site shall be sequestered or visibly marked until 

delivery is returned to the vendor or disposed of. 

 

 A written record (Scrap Inspection Report – attached as Appendix A)

shall be kept of all shipments that have been rejected. The scrap 

supervisor (or other employee designated by PSC) shall send a written 

corrective action letter to the scrap vendor for any delivery that fails the 

meet the above-noted specifications. 

Case 3:06-cv-04184-BZ Document 64 Filed 03/15/2007 Page 16 of 18

Exhibit B

Case 3:06-cv-04184-BZ Document 65 Filed 03/16/07 Page 16 of 18
PACIFIC STEEL CASTING COMPANY 

SCRAP METAL SELECTION 

AND INSPECTION PLAN 

 The scrap supervisor (or other employee designated by PSC) shall 

examine the written records each December of every calendar year and 

determine which vendors, if any, have failed to meet the above-noted 

specifications for more than three (3) inspections in one calendar year. 

PSC shall request of any such vendor to provide PSC with a list of 

remedial measures the vendor is implementing or plans to implement to 

prevent future non-confirming scrap orders. If the vendor does not 

comply with PSC’s request or the proposed remedial measures are 

insufficient to ensure that future shipments will meet the specifications, 

PSC shall cease to purchase any scrap metal from the vendor, until the 

vendor implements corrective actions to PSC’s satisfaction.

Case 3:06-cv-04184-BZ Document 64 Filed 03/15/2007 Page 17 of 18

Exhibit B

Case 3:06-cv-04184-BZ Document 65 Filed 03/16/07 Page 17 of 18
DATE PO # INSPECTOR SIGNATURE YES NO

ENGINE

PARTS/

AUTO

BODY

SCRAP

OIL/OIL

FILTERS PLASTIC

PAINTED

MATERIAL/PA

INTED CANS

GALV

MATERIAL

FREE

ORGANIC

LIQUIDS

M

S

FORM DOCUMENT - F512 (REVISED 01/19/07)

PACIFIC STEEL CASTING

F521, SCRAP DELIVERY INSPECTION REPORT - APPEND

PLANT - 1 __________ PLANT - 2 __________ PLANT - 3 __________

ACCEPTABLE IF NO - CHECK ALL 

10 % OF EACH DELIVERY INSPECTED