Dec. 19, 2006 — WCI Steel, Inc. has reached agreement with the U.S. Environmental Protection Agency regarding a Resource Conservation and Recovery Act (RCRA) claim initially filed in 2002 against WCI Steel’s predecessor company.

WCI Steel expects upfront compliance costs under the agreement, which is part of a federal consent decree between WCI Steel and the EPA, to total approximately $1.7 million. These costs include a $620,000 settlement payment, which primarily reflects liabilities assumed by WCI Steel when it acquired the assets of the predecessor company on May 1.

WCI Steel’s agreement with EPA features a continued focus on minimization of potential risks to migratory birds and other wildlife that may enter containment areas located within the company’s 1,100-acre plant site.

The plan combines a number of measures that have been in place for several years with several additional protective actions, including the erection of exclusion netting at its wastewater treatment pond. The netting will be designed to prevent migratory birds from landing on or entering the pond. These measures are included in the $1.7 million in costs that were accrued as of May 1, 2006.

WCI Steel is, however, permitted to remove air cannons installed in 2002 to address the EPA's original order to deter migratory birds, such as Canadian geese, and other wildlife. The installation of the cannons was among the numerous actions taken by WCI's predecessor company to eliminate the EPA's concerns, said WCI President and CEO Patrick G. Tatom, adding that just four of the 11 areas originally targeted by the EPA remained when old WCI's assets were acquired.

The agreement also allows WCI to continue using its three remaining impoundments, each of which the company considers critical to its operations.

Aside from the RCRA consent decree, Tatom noted that WCI Steel's environmental commitment includes the previously announced $29.3 million investment to install a new baghouse system at its Basic Oxygen Furnace. Construction of the new baghouse system, which will reduce environmental emissions and meet new federal air quality standards, is proceeding on schedule with the facility set to be operational in April of 2007.

"We are pleased that a plan was developed through cooperative negotiation rather than protracted litigation, which allows us to focus on the future of new WCI," said Tatom. "This consent decree is evidence of our continuous environmental improvement and our commitment to our community."

A niche-oriented integrated producer of value-added, custom steel products, WCI Steel currently produces 185 grades of flat-rolled custom and commodity flat-rolled steel at its Warren, Ohio facility. WCI Steel focuses on a wide range of custom flat-rolled steel products, including high carbon, alloy, ultra high strength and heavy-gauge galvanized steel and on developing closer, more responsive relationships with customers. Major customers include steel converters, processors, service centers, construction product companies and, to a lesser extent, automobile manufacturers.