Molycorp - Moving Technology Forward

OVERVIEW/WORK COMPLETED TO DATE

Molycorp's remediation project involves the excavation and removal off-site of material containing elevated levels of naturally occurring radioactive material (NORM), consisting primarily of thorium and a smaller amount of uranium. The project also includes the excavation and off-site disposal of Manufactured Gas Plant tar (tar), and the excavation and off-site processing of levels of a uranium material in an area less than one-half acre in size. This area was identified in a supplemental site characterization that was conducted in 2004.

The majority of the NORM on the property is the result of ore processing activity that occurred in the 1960s. This ore contained levels of thorium and uranium that remained in the slag material after processing. This material was subsequently used as fill in certain areas of the facility.

The tar was produced by a neighboring industrial facility in the early 1900s; Molycorp later purchased this property. Although Molycorp did not generate the tar, it is accepting the responsibility to clean up the material.

The initial site characterization (a comprehensive environmental sampling program) of the property for radiological and non-radiological materials was completed between 1994-1996. The first phase of the remediation project, completed in 2001, included the removal of approximately 13,000 cubic yards of soil and slag in a mounded area on the property and approximately 100 secure roll-off bins on the site. This material was transported off-site by rail to a licensed disposal facility.

The second phase of the project, completed in 2002, involved the demolition and removal of buildings on the property. As cited above, a supplemental site characterization coordinated with both the Nuclear Regulatory Commission (NRC) and the Pennsylvania Department of Environmental Protection (PADEP) was completed in 2004.

Introduction
Molycorp began a project to clean up the company’s former Canton Township plant site in April 2006. This work involves the excavation and off-site disposal of slag and soil containing elevated levels of naturally occurring thorium and uranium that was left from ore processing during the 1960s. The project also includes the removal and disposal of tar on the property generated by a plant that operated in the early part of the last century. While Molycorp did not produce the tar, the company purchased the property and will clean up the tar as part of this project.

The project is anticipated to be completed by mid-2008 and the property will be restored for potential commercial or industrial re-use. This overview summarizes the key phases of the project.

Previous on-site work
The first phase of the remediation project, completed in 2001, consisted of the removal and off-site disposal of approximately 13,000 cubic yards of soil and other materials in a mounded area on the property, and material contained in approximately 100 secure roll-off storage containers. The second phase of the project, completed in 2002, involved the demolition of site buildings. An additional investigation was completed on the site in 2003 after the removal of buildings on the property, and was coordinated with both the Nuclear Regulatory Commission and the Pennsylvania Department of Environmental Protection.

Current project activities

Uranium removal: The 2004 study of the property identified an area located beneath a paved area that contains low-levels of a uranium material. Despite an extensive document search, the source of this uranium could not be determined, though it is believed to date back to the earliest days of production at the plant site. This small area is scheduled for excavation in summer 2006, and the contaminated material will be shipped for off-site disposal.

Thorium removal: Excavation and off-site disposal of the radiological material will be completed over three construction seasons, from 2006-2008. This material will be transported from the property in lined and covered rail cars to a licensed off-site facility for disposal. Excavated soil and material not requiring off-site disposal will be returned as backfill on the property in compliance with the NRC Decommissioning Plan and PADEP-approved Site Cleanup Plan.

Tar Removal: Work to remove tar on the property will occur during the winter months, when cold temperatures allow the tar to become firm, making it easier to handle and reducing the potential for tar-related odors. The tar will be transported by truck for off-site disposal utilizing an approved transportation route.

Stream bank enhancement: The cleanup of several areas impacted by tar along Chartiers Creek will include the restoration of the stream’s bank through the planting of trees and the re-vegetation of areas along the edge of the creek.

Sheet-pile protection of Chartiers Creek: The removal of thorium in areas near Chartiers Creek required the temporary placement of metal sheet piles along the creek where the excavation is taking place. This is protecting the stream and stream bank and allowing the excavation to occur safely. Sheet piles were also placed along a portion of Interstate 70 to allow the safe removal of tar in that area.

Temporary closure of Caldwell Avenue: A portion of Caldwell Avenue, including a metal bridge over Chartiers Creek, closed June 12, 2006, and will remain closed for up to 24 months to allow material to be removed near the road at depths of 10-12 feet below ground surface. This excavation must be sloped to ensure the safety of workers, requiring additional excavation beneath a portion of the road surface. Molycorp will re-grade and re-pave the road to local and state specifications, and the closure was coordinated with Washington County, Canton Township, Trinity School District, and the Canton Township Volunteer Fire Department.

Final restoration: The property will be restored according to state and federal regulatory requirements. All work on the project, including the final review to ensure compliance with those requirements, will be monitored by both the NRC and DEP.

Molycorp is committed to providing neighbors with timely and accurate information about all elements of the project. We invite you to contact our information line at 1-800-952-5504 with any questions or concerns regarding the project.

Introduction
A site characterization is a detailed investigation process that answers important questions such as: “Is there anything of potential concern on this property? If so, where is it, and how much is there?”

Molycorp began the initial site characterization at its Canton Township facility in 1992, with completion in 1995. An additional investigation was completed in 2003-2004, after buildings were removed from the property. These investigations focused on identifying areas of the property that contain elevated levels of thorium.

Before beginning any work in response to these investigations, Molycorp submitted detailed work plans to the Nuclear Regulatory Commission and the Pennsylvania Department of Environmental Protection for review and approval. The results were also submitted to the two government agencies for review and comment, and the results were used to develop Molycorp’s cleanup plan for the property.

Results of Site Characterization
These investigations, which included the collection and analysis of groundwater, surface water and soil samples throughout the property, provided detailed information on the amount and locations of slag and soil with excess levels of thorium. The process included a total of 51 groundwater monitoring wells, 620 soil boring locations and 16 surface water and sediment sampling locations.

Some areas of the property were found to be free of thorium. In others, thorium was present at concentrations above the release criteria at various depths, up to approximately 10-12 feet beneath the surface. Thorium was not found in any of the samples of groundwater and surface water on the property.

The results of the site characterization are helping to guide the cleanup, providing detailed information on the locations that require excavation, and were used to develop decommissioning and site closure plans.

Introduction
Molycorp’s remediation project includes the excavation and off-site disposal of slag and soil containing levels of thorium and uranium that are higher than those permitted by state and federal regulations. This material will be segregated from other soil and material that must be excavated along with it, and will be placed in covered rail cars for shipment to licensed disposal facilities in Idaho.

Molycorp will follow a detailed and organized process to ensure it identifies and removes all of the thorium and uranium higher than allowed by the Nuclear Regulatory Commission.

Precision Excavation Control Method
Molycorp is using a Precision Excavation Control Method (PECM) for the project to identify which areas must be excavated, determine the depths of the excavations and locate those areas that are unaffected. The PECM begins with the use of a mobile, three-wheeled radiation detection cart, pushed by project personnel. This cart is connected to a global positioning system and a computer operated by a project manager that gathers information from the cart. The cart will be pushed across a series of five-square meter grids (about 16.5 feet x 16.5 feet) to identify thorium levels and transmit that information for computer analysis.

From that analysis, excavators will know what levels of thorium are present in each grid, and the exact locations to remove soil and slag for off-site disposal. This process will continue repeatedly across the affected area as the property is analyzed and excavated in precise six-inch layers – the depth which the radiation detection cart is effective in identifying radiation levels. In some locations, the excavations will continue to depths of approximately 10-12 feet.

Off-Site Disposal and Backfill Material
Soil and slag identified for off-site disposal will be placed in a separate stockpile from material that is safe to return to the site as backfill, with both stockpiles located near the transshipment area.

All slag and soil transported for off-site disposal will be transported in sealed rail cars, which will be loaded under a protective cover to minimize dust and off-site exposure.

Uranium Removal Project
The 2004 Site Characterization Project identified a small, less than one-third acre area, on the property that contains slightly elevated levels of uranium. Despite a detailed search of historical documents about processing on the site, the potential source for this uranium could not be identified. Given its depth, however, Molycorp believes this material was likely produced in the early 1900’s.

The excavation of this uranium was one of the first actions undertaken at the site; this excavation was completed mid-September 2006 and its off-site removal is scheduled for Spring 2007.

CALDWELL AVENUE CLOSURE SUMMARY

Introduction
A one-block section of Caldwell Avenue, including a metal bridge over Chartiers Creek, has closed to allow material to be safely removed near the road at depths of 10-12 feet below ground surface. Due to the depths of these excavations, Molycorp determined the closure was the safest option for both workers and the general public. The closure began June 12, 2006, and will remain in effect thru June 2008. The closure was coordinated with Washington County, Canton Township, Trinity School District, and the Canton Township Volunteer Fire Department.

Caldwell Avenue Detour
The 1.4 mile detour route was approved by the Pennsylvania Department of Transportation. The detour routes are posted from the Canton Township Volunteer Fire Department, the detour begins by turning left and continuing along Weirich Avenue (seven-tenths of a mile), right onto Hayes (two-tenths of a mile) and right onto Green Street for a half mile back to Caldwell.

Re-Opening of Caldwell Avenue
Once the project is complete (estimated in early- to mid-2008), Molycorp will re-grade and re-pave the road in compliance with local and state specifications.

TRANSSHIPMENT AREA SUMMARY

Introduction
Molycorp constructed a transshipment area adjacent to an existing rail spur along Green Street to safely handle the staging and transportation off-site of thoriated material excavated during the project. The construction of the transshipment area was completed on December 12, 2006.

Shipment Process
Material excavated from Molycorp’s property will be segregated into appropriate stockpiles. Slag and soil identified for disposal will be temporarily stored on the transshipment area. All stockpiles will be covered. Soil and slag to be removed for off-site disposal will be placed in lined, covered rail cars, and the loading area will be covered to control dust.

Each rail car will be inspected before leaving the property for a disposal facility in Idaho.

Support Facilities
A contact water holding and treatment facility was constructed as part of the project to manage run-off from rain and snow that comes into contact with the stockpiles and open excavations. This contact water will be treated and discharged into Chartiers Creek as provided by Molycorp’s NPDES permit.

CHARTIERS CREEK PROTECTION AND RESTORATION SUMMARY

Introduction
The excavation of material on Molycorp’s property will require work to protect Chartiers Creek and its stream banks. In some areas, the slag and soil on the property that must be removed is very close to the creek. In other areas, tar from the historic manufactured gas plant operations must be collected and removed from the stream bank.

Molycorp has installed several hundred feet of sheet piles along the stream bank to protect it during the removal of soil and slag for off-site disposal. The information below summarizes this phase of the project and plans to restore all areas of the stream bank where construction activity will take place.

Sheet Pile Installation
The use of sheet piles is common in construction projects next to streams, rivers and other waterways. For this project, Molycorp has created a barrier to protect the flow of Chartiers Creek and allow the safe and complete removal of slag in areas near the creek.

Sheet piles are thin, interlocking sheets of steel that must be driven into bedrock using a crane and a hydraulic hammer. Without sheet piles in place, Chartiers Creek could potentially flood into the area being excavated nearby on Molycorp’s property.

Sheet piles were installed in spring 2006 and will remain in place through the project’s completion. Additional sheet piles will be installed near I-70 to eliminate impacts to the highway while tar is removed along highway embankments.

Introduction
Molycorp will clean up tar on its property as part of this project and transport the tar by truck for off-site disposal. The tar is currently located in several areas on the property, including a secure holding pond, in the area of a demolished building foundation, near Interstate 70 and in a number of tar “seeps” in the southern portion of the property near Chartiers Creek.

The source of the tar is a former manufactured gas plant (MGP) that operated in the early 1900’s on property that was acquired by Molycorp in the 1970’s. While Molycorp did not produce the tar, the company has accepted responsibility for cleaning it up as part of the project to return the site for potential re-development.

Excavation Process
Tar excavation began Nov. 30, 2006, and will continue through the winter the months, when cold temperatures will allow for easier handling and reduce the potential for odors. Tar will be removed using a backhoe and other excavation equipment, and placed in lined, covered trucks for off-site disposal. Trucks will be inspected and cleaned prior to leaving Molycorp’s property. The first loads of tar were disposed at Arden Landfill on Dec. 4, 2006.

Sheet piles are being utilized to support the highway embankment along Interstate 70 and allow for the safe removal of tar in that area of Molycorp’s property.

Molycorp will cover the working area daily and use masking systems to reduce the potential for odors. Hours of operation for tar removal will be limited to the hours of 7:00 a.m. to 3:00 p.m. Monday through Friday and will follow an approved, four-mile haul route to Arden Landfill.

Restoration of Property
Molycorp will restore areas where tar was removed using clean fill material, returning those areas to grade and vegetating the areas to prevent erosion and sedimentation. Special attention will be given to areas along Chartiers Creek where tar was excavated to improve the stream’s banks.

Introduction
Personal protective equipment, or PPE, is designed to protect employees from workplace injuries, illnesses or other potential workplace hazards. The U.S. Occupational Safety and Health Administration (OSHA) classifies different types of PPE, which includes a variety of devices and garments such as face shields, safety glasses, Tyvek suits, hard hats and safety boots needed to complete work safely.

The amount of PPE required for any project is determined by the company completing the work, using OSHA recommendations. PPE levels will differ between industries and projects. Contractors and employees at Molycorp’s Canton Township site may be required to wear several different articles of PPE, including hard hats, safety glasses, Tyvek suits and booties, surgical gloves, steel-toed safety boots and high visibility safety vests. PPE requirements vary depending on the hazards encountered.

Why is PPE necessary at the Molycorp site?
In addition to providing physical protection, workers wear PPE to ensure that excavated materials remain on site and are not carried home on clothes beneath the Tyvek protective suits. Tyvek suits are made of thin, protective material commonly worn for these types of construction projects and is often used today as an insulating layer in home construction.

At the end of each work day, workers return PPE garments to a designated area where they will be properly cleaned and/or prepared for proper disposal.

Do I need to wear PPE when working outside my home?
No. PPE is just one of the precautions Molycorp is taking to protect individuals working directly in the areas to be excavated, as well as other locations on the property. Molycorp has taken numerous precautions to prevent off-site impacts.

Molycorp recommends, however, that people evaluate what type of PPE is needed to protect one’s eyes, hands, head and feet before starting any project at home.

Introduction
At the completion of Molycorp’s remediation project, the property will be returned to a condition to allow for potential commercial, business or industrial re-development. It will meet the provisions for “unrestricted release” under the Nuclear Regulatory Commission’s requirements for radiological materials, as well the “site-specific” standards for non-radiological material under Pennsylvania’s brownfields regulations.

At the completion of the project Molycorp will work with local and county economic development groups to identify potential re-development opportunities.

Radiological Site Closure
Each excavated area on the property must be evaluated carefully to ensure it meets the cleanup criteria established by NRC for unrestricted release. If an area does not meet those levels, the Precision Excavation Control Method must continue until testing confirms the criteria is met.

Material that was excavated, tested and meets re-use criteria will be used as backfill on the property as part of the site restoration process. Additional imported clean fill material will be used as needed for the excavated areas and for the top two-foot final cover over the entire site. Areas excavated for tar will also be backfilled and restored to their original grade.

As part of the site closure, the property will be seeded with grass and monitored under the “post-closure” requirements established by NRC and DEP.

The transshipment area will remain on-site depending on future re-use options and Caldwell Avenue will be re-built in accordance with all state and local standards.

Manufacturered Gas Plant Tar Site Closure
Similar to the radiological site closure, Molycorp is working with PADEP to carefully evaluate the site to and ensure removal of the manufactured gas plant tar meets the visible cleanup standard as required by the Cleanup Plan.

Post Closure Monitoring
Molycorp will continue ground water monitoring at the site for three years following the completion of the cleanup project. Results related to radiological testing will be reported to the NRC for one year after the project’s completion while results related to general metals testing, or non-radiological materials, will be reported to the PADEP for three years after the project’s completion.

Well locations will be determined by representatives of Molycorp, NRC and PA DEP several months prior to the completion of the project.

All project scheduling is approximate and based on regulatory approvals.
Work is scheduled for completion in mid-2008.

URANIUM REMOVAL PROJECT

The 2004 supplemental site characterization revealed that a small area, located beneath a former process building, contains slightly elevated levels of uranium. A more comprehensive study, completed in April 2006, proved there is significantly less uranium located on the site than originally thought. Removal of this material was one of the first actions undertaken at the site and its excavation was completed in fall 2006. Despite an extensive document search, the specific source of this uranium could not be determined, though it is believed to date back to the earliest days of production at the plant site.

FAQs

Is Molycorp going to remove the slag containing thorium from the property and take it to another location?

What does Molycorp intend to do with the property once the remediation is complete?