June 5, 2012

Mr. John Hughes

Eramet Marietta Inc.

P.O. Box 299

16705 State Route 7 South Marietta, Ohio 45750

- 0299

Re: Furnace 1 Tap Hole Baghouse and Furnace Baghouse

Furnace 12 Scrubber Exhaust

Filterable Particulate Matter Compliance Emission Measurement Program Polycyclic Aromatic Hydrocarbons, Mercury

, Formaldehyde, and Hydrochloric Acid Engineering Emission Measurement Program Proposal No

. 10877 , 2 nd Revision

Dear Mr. Hug hes:

Environmental Quality Management, Inc. (EQ) is pleased to submit this 2 nd revision proposal (originally submitted April 12 and 18, 2012) to plan and conduct a compliance and engineering emission measurement program for Furnaces 1 and 12 at the Eramet facility in Marietta, Ohio. EQ proposes to conduct the following tasks at the Furnace 1 exhausts (2) and at the Furnace 12

scrubber outlet:

1) Prepare an Intent

- to

- Test (ITT) Notification for review by Eramet and submittal to the Ohio Environmental Protection Agency (OEPA). The protocol will address filterable particulate

matter (PM) compliance only.

2) Measure stack gas velocity, temperature, gas composition (CO 2 , O 2 and N 2 ), and moisture

conte nt according to the procedures outlined in EPA Methods 1 through 4. Three 1

- hour test runs will be conducted at each test location (Furnace 1

– 2 sites, Furnace 12

– 1 site), during PM sampling only.

3) Measure the concentration and mass emission rate of to tal filterable particulate matter following the procedures in EPA Method 5. Three 1

- hour test runs will be completed at each test location (Furnace 1

– 2 sites, Furnace 12

– 1 site). This sampling may be combined with Hydrochloric Acid sampling.

4) Measure the concentration and mass emission rate of Hydrochloric Acid (HCl) following the procedures in EPA Method 26A . Three 1

- hour test runs will be completed at each test location (Furnace 1

– 2 sites, Furnace 12

– 1 site). This sampling may be combined with the filterable particulate matter train.Mr. John Hughes

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- June 5, 2012

5) Measure the concentration and mass emission rate of Polycyclic Aromatic Hydrocarbons (PAHs) at each test location. One test run will be completed with a minimum sampling

volume of 105 dscf. It is estimated that the test run will be 2 to 3 hours in duration. USEPA Method 23 will be utilized to complete PAH sampling. A 1

- hour sampling run option is provided.

6) Measure the concentration and mass emission rate of Mercury (Hg) at each test location.

One test run will be completed with a minimum sampling volume of 105 dscf. It is estimated

that the test run will be 2 to 3 hours in duration. USEPA Method 29 will be utilized to determine total Hg emissions. If Hg speciation is needed (elemental, oxid ized, particle bound and total), ASTM D6784

- 02 could be used as an option. An optional cost for Hg speciation and a 1

- hour sampling run is provided.

7) Measure the concentra tion and mass emission rate of f ormaldehyde at each test location.

One test run wil l be completed at each sampling location . USEPA Method 316 will be utilized to determine formaldehyde emissions.

8) PAH, HCl

, formaldehyde, and Hg sampling will be completed for engineering purposes. A single test run is proposed for PAH , formaldehyde, and Hg at each exhaust.

9) Reduce all field data, conduct gravimetric analyses, manage other analyses

, and perform computer calculations.

10) EQ will prepare two draft reports. An engineering report for HCl, PAH

, formaldehyde, and Hg will be provided for review a nd a compliance PM test report will be prepared for review

. Four bound copies and a digital copy of each final report will be provided.

Facility personnel will be responsible for monitoring process operations, collecting process data

for inclusion in th e summary report, providing safe and adequate access to the sampling locations, and providing sufficient electrical power for testing purposes. Please note that due to the quantity of engineering testing to be completed, the scissor lift will not be suffi cient to complete the testing. Scaffolding (or a similar structure) will be needed at the interior baghouse (tap hole) sampling location on Furnace 1 due to the number of sampling tra i ns involved

. EQ can provide a schematic of the scaffold layout to acce ss the sampling location.

The firm

- fixed price to complete the scope of work is $ 5 5 ,5 00

. The optional Hg speciation could be completed at an additional cost of $1,500. Six experienced source test personnel have been budgeted for four days on site , with two additional test personnel needed for the engineering testing on Furnace 1

. If 1

- hour test runs are chosen rather than 2

- hour test runs for the engineering portion of the project, the firm

- fixed price to complete the scope of work would be $54,000. A t entative project schedule is provided in Table 1. I suggest a pretest meeting at your
convenience to review the schedule prior to the test program

.

EQ is available July 23 to July 27 , 2012 to complete the test program. The services outlined in this prop osal are subject to Exhibit 1, “Emissions Testing Terms and Conditions.” Invoices willMr. John Hughes

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- June 5, 2012

be submitted monthly based on percent completion. Our invoice payment options are provided at the end of this proposal. Terms are net 30 days. This proposal is valid for 90 days.

Table 1. Tentative Test Schedule Monday, July 23, 2012
• Set up test equipment at the Furnace 1 baghouses.

• Complete 2 PM compliance test runs. Tuesday, July 24, 2012
• Complete PM compliance Run 3 at Furnace 1.

• Complete engineering testing at Furnace 1

.

• Set up equipment at Furnace 12 scrubber. Wednesday, July 25,

2012 • Complete PM compliance testing at Furnace 12 (3 runs)

.

• Complete engineering testing at Furnace 1 2

.

• Tear down equipment and depart site. Thursday, July 26, 2012
• Contingency.

EQ’s standard corporate policy requests our clients to provide written authorization to perform services. If you have any questions about our proposed approach or cost, or if you need additional information, please contact me at (513) 825

- 7500, extension 251, or e

- mail at tgerstle@eqm.com . We look forward to working with you again.

Sincerely,

ENVIRONMENTAL QUALITY MANAGEMENT, INC.

Tom Gerstle Manager, Air ComplianceMr. John Hughes

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- June 5, 2012

ENVIRONMENTAL QUALITY MANAGEMENT, INC.

EXHIBIT 1

EMISSIONS TESTING TERMS AND CONDITIONS

Client Name: Eramet Marietta, Inc.

1. Delay Time Charges

– Client will ensure consistent process operation for the duration of each test. If testing is delayed through no fault of EQ, including inclement weather that threatens the safety of EQ personnel, Client agrees to pay EQ for the delay time for the

entire test team at the hourly rate of $ 9 50

.

2. Cancellation/Postponement

– In the event of project cancellation or postponement by the

client within 1 5 working days of the scheduled test date, the client agrees to compensate EQ for incurred preparation costs in the amount of 10% of the project total

.

3. Sampling Ports

– Client will provide unobstructed sampling ports that meet the minimum requirements of EPA Method 1, and will provide safe access to same that meets OSHA requirements.

4. Sampling Platform

– Client will inspect each sampling platform that is greater than 10 feet from the ground and is exposed to the atmosphere to ensure that it is safe for use. EQ will need scaffolding at the Furnace 1 tap hole baghouse.

5. Utilities

– Client will provide 60

- cycle, 120

- v olt, 20

- ampere, grounded electrical circuit within 50 feet of the sampling ports, or as specified by EQ in additional correspondence.

6. Process Information

– Client will monitor process conditions during test periods and provide to the EQ project manager such information as may be necessary to perform the required test calculations and reporting.

7. Expansion of Scope

– Work requested by the Client and performed by EQ that is not within the original scope of work described in the proposal, will be charged to the Client. EQ will inform the Client in writing of the expected cost of the additional work to be performed. The Client will alter or reissue the purchase authorization to cover the additional charges.

8. Confidentiality

– EQ will maintain the strict est confidentiality on all information considered by the Client to be Company Confidential. All test results will be submitted only to the Client unless formally directed to do otherwise.

9. Limitation of Liability

– In recognition of the relative risks, rewards, and benefits of the project to both the Client and EQ, the risks have been allocated such that the Client agrees that, to the fullest extent permitted by law, EQ’s total liability to the Client for any and all injuries, claims, losses, expenses, d amages, or claim expenses arising out of this agreement from any cause, shall not exceed EQ’s fee for this project. Such causes include, but are not limited to, EQ negligence, errors, omissions, or breach of contract.

Under no circumstances shall EQ or any of its affiliates have any liability whatsoever for any compensatory, punitive, special, indirect, incidental, or consequential damages,Mr. John Hughes

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- June 5, 2012

including, but not limited to, loss of profit or revenue, loss of use, lost production, or consequential property dama ge; capital cost of replacement equipment; or claims resulting from contracts between Client and its customers and/or suppliers.

10. Standard of Care

– In providing services under this Agreement, EQ shall perform in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing under similar circumstances at the same time and in the same or similar locality.

11. Indemnification

– EQ agrees, to the fullest extent permitted by law, to indemni fy and hold harmless the Client, its officers, directors and employees (collectively, Client) against all damages, liabilities or costs, including reasonable attorneys' fees and defense costs, to the extent caused by EQ’s negligent performance of professio nal services under this Agreement and that of its subconsultants or anyone for whom EQ is legally liable.

The Client agrees, to the fullest extent permitted by law, to indemnify and hold harmless EQ, its officers, directors, employees, and subconsultants ( collectively, EQ) against all damages, liabilities, or costs, including reasonable attorneys' fees and defense costs, to the extent caused by the Client's negligent acts in connection with the Project and the acts of its contractors, subcontractors, or con sultants or anyone for whom the Client is legally liable.

Neither the Client nor EQ shall be obligated to indemnify the other party in any manner whatsoever for the other party's own negligence or for the negligence of others.

12. Invoicing and Terms of Pa yment

– Invoices for EQ services shall be submitted on a periodic basis, and shall be payable within 30 days after the invoice date. If the invoice is not paid within 45 days of the due date, invoices shall bear interest at one

- and

- one

- half (1.5) percent o f the past due amount per month, which shall be calculated from the invoice date. Payment thereafter shall first be applied to accrued interest and then to the unpaid principal. If the invoice is not paid within 60 days, EQ may, without liability whatsoeve r to the Client and after giving 7 days written notice, suspend services under this agreement until all past due accounts have been paid.

13. Dispute Resolution

– Any claims or disputes made during design, construction, or post

construction between the Cli ent and EQ shall be submitted to binding arbitration. The Client and EQ agree to include a similar dispute resolution agreement with all contractors, subcontractors, subconsultants, suppliers, and fabricators involved in this project, thereby providing for arbitration as the primary method for dispute resolution between all parties.

____________________ Authorization to Proceed

____________________ DateMr. John Hughes

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- June 5, 2012

ENVIRONMENTAL QUALITY MANAGEMENT, INC.

INVOICE PAYMENT OPTIONS

For your convenience, EQ provides the following options for your payment. Please contact us at

800

- 229

- 7495 with any questions.

1) Check payment by mail:

Environmental Quality Management, Inc.

P.O. Box 643043 Cincinnati, OH 45264

- 3043

2) Automated Clearing House (ACH) information:

US Bank Routing Number 042000013

Account Number 480401595

3) Credit Card Payment:

Please call our corporate office at 800

- 229

- 7495 and contact Ms. Barb Ore (extension 204) or Ms. Shalena Pritchett (extension 276) and provide the following information:

• I nvoice number and amount

• Name on credit card

• Credit card number

• Expiration date

• Credit card security code on back of card

• Zip code of credit card billing address

4) Please include the invoice number(s) with all payments.

Thank you for your prompt payment.