EXHIBIT 10.1

OREGON STEEL MILLS

February 16, 2006

Executive Officer

Oregon Steel Mills, Inc. (which, together with its Subsidiaries, is referred to as the Company) considers the stability of its key management group to be essential to the best interests of the Company and its stockholders.  The Company recognizes that, as is the case with many publicly held corporations, the possibility of a Change in Control may arise and that the attendant uncertainty may result in the departure or distraction of key management personnel to the detriment of the Company and its stockholders.

Accordingly, the Board of Directors of Oregon Steel Mills, Inc. (the Board) has determined that appropriate steps should be taken to encourage members of the Companys key management group to continue as employees notwithstanding the future possibility of a Change in Control of the Company.

The Board also believes it important that, in the event of a proposal for transfer of control of the Company, you be able to assess the proposal and advise the Board without being influenced by the uncertainties of your own situation.

In order to induce you to remain in the employ of the Company, this Agreement, which has been approved and authorized by the Board, sets forth the severance compensation which the Company agrees to pay to you in the event your employment with the Company is terminated subsequent to the occurrence of a Change in Control of the Company under the circumstances described below.  This Agreement also supercedes any such agreement you may currently have in place.

Capitalized terms not otherwise defined in this Agreement have the meanings set forth in Section 13.

|1 | Agreement   to Provide Services; Right to Terminate.
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|  | (a)                                                 



|  | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Continuation   of Services Subsequent to Certain Offers.  In the event a tender offer or exchange   offer is made by a Person for more than twenty-five percent (25%) of the   Companys Voting Securities, you agree that you will not leave the employ of   the Company (other than as a result of disability) and will render services   to the Company in the capacity in which you then serve until such tender   offer or exchange offer has been abandoned or terminated or a Change in   Control has occurred.  If, during the   period you are obligated to continue in the employ of the Company pursuant to   this Section 1(b), the Company reduces your compensation to less than 90% of   your then-current compensation, your obligations under this Section 1(b) will   automatically terminate.
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|  | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Obligations   After Change in Control.    While employed by the Company (or its successor) after a Change in   Control, you agree to devote reasonable attention and time to the business   and affairs of the Company and to use your reasonable best efforts to perform   your responsibilities faithfully and efficiently, consistent with your past   practice as an employee of the Company.                                                                                                                                                                                                                                                                                                                                                                                                               
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|2 | Term   of Agreement.This   Agreement commences on the date of this Agreement and will continue in effect   until January 1, 2007; provided, however, that commencing on January 1, 2007,   and each January 1 thereafter, the term of this Agreement will automatically   be extended for one additional year unless at least 60 days prior to such   January 1, the Company or you will have given notice that this Agreement will   not be extended; and provided, further, that if a Change in Control of the   Company occurs while this Agreement is in effect, this Agreement will   automatically be extended for a period of three calendar years beyond the   calendar year in which the Change in Control occurs.  Notwithstanding the preceding sentence,   this Agreement will not extend beyond your normal retirement date under the   Companys retirement plan.  This   Agreement will terminate if you or the Company terminates your employment   prior to a Change
in Control but such termination will be without prejudice   to any remedy the Company may have for breach of your obligations, if any,   under Section 1(b).
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|3 | Effect   of Termination Following Change in Control.  In the event your employment with the   Company is terminated, whether by you or the Company, within three years   following the date of occurrence of any event constituting a Change in   Control (recognizing that more than one such event may occur in which case   the three-year period will run from the date of occurrence of each such   event), you will be eligible to receive the following respective benefits:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

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| | (a) | Termination   for Cause or Without Good Reason.  If your employment is terminated by the Company for Cause, or   by you other than for Good Reason, the Company will pay you your Base Salary   through the Date of Termination at the rate in effect on the Date of   Termination, together with all benefits to which you are then entitled under   Plans in which you are a participant, and the Company will have no further   obligations to you under this Agreement.
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| | (b) | Termination   With Good Reason or Other Than for Cause.If your employment with the Company is terminated   (other than for disability or upon your death) by you for Good Reason by you   giving two (2) weeks prior written notice specifying the Good Reason or by   the Company other than for cause, then the Company will pay to you the   following amounts (the Severance Payments), less applicable withholding:                                               
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |     | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
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| |     | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | (y) is the normal retirement allowance to which you   are actually entitled under the Companys Pension Plan as of the date a   Notice of Termination.
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Present actuarial value shall be computed using the   current PBGC interest rate that applies to involuntary and/or distress   terminations for single employer plans and the applicable 1994 Group Annuity   Mortality Table set back two (2) years and shall reflect the value of any   applicable early retirement subsidies under the Companys Pension Plan.                                                                                                                                                                     
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                       | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Your group insurance benefits (health, dental,   vision & life) substantially similar to those which you and your eligible   dependents were receiving immediately prior to a Notice of Termination at the   same cost to you as the Company charges other employees, for three   years.  Benefits otherwise receivable   by you pursuant to this subparagraph shall be reduced to the extent similar   benefits are actually received by you from any other source, and any such   similar benefits shall be reported to the Company.
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|The amount of Severance Payments otherwise payable pursuant to this Agreement will be reduced by (A) amounts payable to you pursuant to any other Plan or agreement providing severance benefits to you or to the Companys salaried employees generally and (B) amounts payable to you (after any adjustment or reduction to reflect payments described in clause (A)) as salary continuation and incentive compensation pursuant to any employment agreement between you and the Company that is in effect as of the Date of Termination.
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (c)                   | Release   of Claims.  Your   receipt of Severance Payments is conditioned upon your execution and   nonrevocation of a release of claims in a form to be provided by the Company.                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Additional   Payment.
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (a)                   | Gross-Up.In the event any portion   of the Total Payments will be subject to the Excise Tax, the Company will pay   you an additional amount (the Gross-Up Payment) equal to (1) the Excise Tax   imposed on you with respect to the portion of the Total Payments that   constitutes an excess parachute payment (as that term is described in   Section 280G(b)(1) of the Code), plus (2) all federal, state, and local   income taxes and Excise Tax imposed on you with respect to the Gross-Up   Payment.

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| | (b) | Determining   Amount of Excise Tax.For   purposes of determining whether any portion of the Total Payments will be   subject to the Excise Tax and the amount of any Excise Tax:                                                                                                                                                                                                                                                                                                                                                                                                                                               
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| |     | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |     | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
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| | (c) | Determining   Amount of Gross-Up Payment.  For purposes of determining the amount of the Gross-Up Payment:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |     | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |     | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | (d) | Subsequent   Adjustment  Repayment.In   the event that the amount of Excise Tax you are required to pay is   subsequently determined to be less than the amount taken into account under   this Agreement, you agree that promptly after the amount of such reduction in   Excise Tax is finally determined, you will repay to the Company, at 6%   interest from the date of the Gross-Up Payment, the amount of such reduction,   plus the net federal income tax benefit, if any, you actually will receive   (in the opinion of Outside Tax Counsel) as a result of making the repayment   described in this Section 4(d).
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | (e) | Subsequent   Adjustment  Additional Payment.In   the
event that the amount of Excise Tax you are required to pay is subsequently
determined to exceed the amount taken into account under this Agreement, the                                                                                                                                                                                                                                                                                                                                                                                                                 

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| |  |                                                                                                                                                                                                                                                                                                                       
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| |  | Company will make an additional Gross-Up Payment in the manner set forth in this Section 4 in respect of such additional Excise Tax, plus any interest, additions to tax, or penalties payable by you with respect to the additional Excise Tax, promptly after the time that the amount can be reasonably determined.

|5 | Setoff.To the extent   permissible under applicable law, without prejudice to other remedies, the   Company may offset any amounts you owe the Company against any amounts due   upon termination or thereafter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
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|6 | Notice.For the purposes of this   Agreement, notices and all other communications provided for in the Agreement   must be in writing and will be deemed to have been duly given when delivered   or mailed by United States certified or registered mail, return receipt   requested, postage prepaid, if to the Company, addressed to it at Oregon   Steel Mills, Inc., 1000 SW Broadway #2200, Portland OR 97205, Attention:   Chairman of the Board of Directors, and if to you, addressed to you at the   address set forth on the first page of this Agreement, or to such other   address as either party may have furnished to the other in writing in   accordance with this Agreement, except that notices of change of address will   be effective only upon receipt.
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|7 | Successors;   Binding   Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|  | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|8 | Time of Payment; Estimated Payment.Prior to the effective date of any
Change in Control, the Company will post a letter of credit for your benefit
equal to the amount of the Severance Payments that would be due you under the
terms of this agreement. The Severance Payments and any applicable Gross-Up
Payment provided for in this Agreement will be made to                                                                                                                                                                                                                                                                                                                                                                                                            

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|   | you not later than the 15th business day   following the Date of Termination; provided, however, that if the amounts of   such payments cannot be finally determined on or before such day, the Company   will pay to you on such day an estimate, as determined in good faith by the   Company, of the minimum amount of such payments, and will pay the remainder   of such payments as soon as the amount of such payments can be determined.  In the event that the amount of the   estimated payments exceeds the amount subsequently determined to have been   due, such excess will be repaid by you to the Company, payable on the fifth   day after demand by the Company (together with interest at the rate of 6   percent per annum).  If the Company   fails to timely deliver your Severance Payments under the terms of this   agreement, you may exercise the letter of credit.                                                                                                                                                                                                                                                                         
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|9  | Miscellaneous.No provision of this   Agreement may be modified, waived, or discharged unless such modification,   waiver, or discharge is specifically approved by the Board and agreed to in a   writing signed by you and the Chairman of the Board of Directors of the   Company.  No waiver by either party to   this Agreement at any time of any breach by the other party of, or of   compliance with, any condition or provision of this Agreement to be performed   by such other party will be deemed a waiver of similar or dissimilar   provisions or conditions at the same, or at any prior or subsequent, time.  No agreements or representations, oral or   otherwise, expressed or implied, with respect to the subject matter of this   Agreement have been made by either party which are not expressly set forth in   this Agreement.  The validity,   interpretation, construction, and performance of this Agreement will be   governed by the laws of the
State of Oregon.    All obligations of the Company to make payments or to provide benefits   will be subject to all applicable payroll taxes, withholding and reporting   requirements.
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|10 | Legal   Fees and Expenses.The   Company will pay or reimburse any reasonable legal fees and expenses you may   incur in connection with any legal advice or legal action to enforce your   rights under, or to defend the validity of, this Agreement (including all   such fees and expenses, if any, incurred in contesting or disputing your   termination or in seeking to obtain or enforce any right or benefit under   this Agreement).  The Company will pay   or reimburse such reasonable legal fees and expenses within 15 days of   presentation by you of a statement or statements prepared by your counsel in   accordance with its usual practices (there shall be no requirement to provide   a description of services provided by your counsel).  At your request, the Company will pay the   reasonable legal fees and expenses directly to your counsel.                                                                                                                                                                                                                                                                                           

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|11 | Validity.  The invalidity or unenforceability of any   provision of this Agreement will not affect the validity or enforceability of   any other provision of this Agreement, which will remain in full force and   effect.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
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|12 | Dispute   Resolution.  You and   the Company agree that any dispute concerning the interpretation or   construction of this Agreement or otherwise related to this Agreement will be   resolved by confidential mediation or binding arbitration.  The parties will first attempt mediation   with a neutral mediator agreed upon by the parties.  If mediation is unsuccessful or if the parties are unable to   agree upon a mediator, the dispute will be submitted to arbitration pursuant   to the procedures of the American Arbitration Association (AAA) or other   procedures agreed to by the parties.    All arbitration proceedings will be conducted by a neutral arbitrator   mutually agreed upon by the parties.    The decision of the arbitrator will be final and binding on all   parties.  The costs of mediation and   arbitration will be borne by the Company as provided in Section 10 of this   Agreement.
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|13 | Definitions   of Certain Terms.    For the purposes of this Agreement, the terms defined below and used   in this Agreement will have the following meanings:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
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|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

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| |     | misconduct, breach of fiduciary duty involving   personal profit, intentional failure to perform stated duties, willful   violation of any law, rule, or regulation (other than traffic violations or   similar offenses).  OSM may terminate   this Agreement effective as of the date a written Notice of Termination is   given specifying the cause.
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| | (c) | Change   in Control.A   Change in Control of the Company means:                                                                                                                                                                                                                                                                                       
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| |     | (i)                                                                                                                                                                                                                                                                                                                                                     
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| |     | (ii)                                                                                                                                                                                                                                                                                                                                                    
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| |     | (iii)                                                                                                                                                                                                                                                                                                                                                   
| |     |                                                                                                                                                                                                                                                                                                                                                         
| |     | (iv)                                                                                                                                                                                                                                                                                                                                                    

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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | paid therefore or by such other method as the Board   determines is appropriate in a case where there is no readily ascertainable   purchase price) constitutes more than two-thirds (2/3) of the fair market   value of the Company (as hereinafter defined).  For purposes of the preceding sentence, the fair market value   of the Company shall be the aggregate market value of the Companys   outstanding common stock (on a fully diluted basis) plus the aggregate market   value of the Companys other outstanding equity securities, if any.  The aggregate market value of the   Companys common stock shall be determined by multiplying the number of   shares of the Companys common stock (on a fully diluted basis) outstanding   on the date of the execution and delivery of a definitive agreement with   respect to the transaction or series of related transactions (the Transaction   Date) by the average closing price
of the Companys common stock   for the ten (10) trading days immediately preceding the Transaction   Date.  The aggregate market value of   any other equity securities of the Company shall be determined in a manner   similar to that prescribed in the immediately preceding sentence for   determining the aggregate market value of the Companys common stock or by   such other method as the Board shall determine is appropriate; provided that,   in the event that on the Transaction Date there is no public market for such   common stock or other equity security, the fair market value of the equity   securities or common stock shall be as reasonably determined by the Board.
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| |     | A Change in Control occurs on the date the Change in Control first occurs; provided, however, that if (A) your employment is terminated by the Company after an offer described in the first sentence of Section 1(b) of this Agreement is made, (B) it is reasonably demonstrated that your termination was at the request of a third party who is seeking to effect a Change in Control or otherwise occurred as a result of an anticipated Change in Control, and (C) a Change in Control in fact occurs within 120 days after your termination, then for purposes of determining your right to any severance compensation and benefits under this Agreement, your termination shall be deemed to have occurred after a Change in Control.
| |    
| | (d) | Code.  Code means the Internal Revenue Code of   1986, as amended, or corresponding provisions of subsequent superseding   federal revenue laws.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
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| | (e) | Date   of Termination.Date   of Termination means the date on which a Notice of Termination sets forth as   the Date of Termination.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

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| | (f) | Excise   Tax.Excise Tax   means a tax imposed by Section 4999(a) of the Code, or any successor   provision, with respect to excess parachute payments as described in   Section 280(G)(b) of the Code.                                                                                                                                                                                                                                                                                                                                               
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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (g) | Good   Reason.  Termination   by you of your employment for Good Reason means termination based on any of   the following, without your express written consent, unless, such   circumstances are fully corrected prior to the Date of Termination specified   in the Notice of Termination given in respect thereof:                                                                                                                                                                                                                                  
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |     | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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| |     | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
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| |     | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
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| |     | (iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
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| |     | (v)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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| |     | (vii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
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| | (h) | Gross-Up   Payment.  Gross-Up   Payment means a payment described in Section 4 of this Agreement with   respect to an Excise Tax.                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (i) | Notice   of Termination.Notice   of Termination means a written notice communicated by the Company to you or   by you to the Company of termination of your employment with the   Company.  For purposes of this   Agreement, Notice of Termination of your employment given by the Company must   indicate the specific termination provision in this Agreement relied upon,   and must set forth in reasonable detail the facts and circumstances claimed   to provide a basis for termination of your employment under the provision so   indicated.

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| | (j) | Outside   Tax Counsel.    Outside Tax Counsel means Schwabe, Williamson & Wyatt, P.C., or   in the event such counsel are unavailable by reason of conflict or for any   other reason, another law firm in Portland, Oregon, selected by you that is   reasonably satisfactory to the Company.    The Company will not unreasonably withhold its approval of counsel   selected by you as Outside Tax Counsel.                                                                                                                                                                                                         
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| | (k) | Person.  Person means and includes any   individual, corporation, limited liability company, partnership, trust,   group, association, or other person, as such term is used in Section   13(d)(3) or 14(d) of the Securities Exchange Act of 1934, as amended.                                                                                                                                                                                                                                                                                                                                                      
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (l) | Plan.  Plan means any compensation plan such as   a plan, program, policy, or arrangement providing for incentive or deferred   compensation, stock options, other stock or stock-related grants or awards   severance or separation benefit, any employee benefit plan such as a thrift,   investment, savings, pension, supplemental retirement plan, profit sharing,   401(k), medical, disability, long-term care, accident, life insurance,   cafeteria, or relocation plan or any other plan, program, policy, or   arrangement of the Company providing similar types of benefits to employees   of the Company.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (m) | Severance   Payments.Severance   Payments means the payments to be paid to you as described in Section 3(b)   of this Agreement.  All severance and   other payments made by the Company to you are subject to applicable tax   withholding.                                                                                                                                                                                                                                                                                                                                                                           
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (n) | Subsidiary.  Subsidiary means an entity of which more   than 50 percent of the outstanding voting stock is owned, directly or   indirectly, by the Company, by one or more other Subsidiaries, or by the   Company and one or more other Subsidiaries.    For the purposes of this definition, voting stock means stock which   ordinarily has voting power for the election of directors or managers,   whether at all times or only so long as no senior class of stock has such   voting power by reason of any contingency.                                                                                      
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (o) | Total   Payments.  Total   Payments means all payments or benefits payable to you in connection with a   Change in Control of the Company, including Severance Payments under this   Agreement and Other Payments.                                                                                                                                                                                                                                                                                                                                                                                                     

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|                                                                                                                                                                                                 | (p) | Voting   Securities.Voting   Securities means all issued and outstanding securities ordinarily having the   right to vote at elections of the Companys directors, including without   limitation the Company shares.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                 |     |                                                                                                                                                                                                                        
|If you accept and agree to the terms of this   Agreement, kindly sign and return to the Company the enclosed copy of this   Agreement, which will then constitute our agreement on this subject.

|                            | Sincerely,                        
|--------------------------- | ----------------------------------
|                            | OREGON   STEEL MILLS, INC.        
|                            |                                   
|                            |                                   
|                            | /s/ Carl W. Neun                  
|                            |                                   
|                            | Chairman of the Board of Directors
|Agreed to February 16, 2006 |                                   
|                            |                                   
|Executive Officer           |                                   

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