Supplemental Environmental Project (SEP) Consent Decree

On October 6, 1999, Asarco entered into a Consent Decree with the EPA and TCEQ. The Consent Decree required Asarco to do a number of items. Specifically, Asarco was required to spend a minimum of $1,850,000 over a five year period to pave roads, alleyways, parking lots and/or medians in the El Paso, Texas area. Asarco was required to spend a minimum of $370,000 per year beginning in 2000 for five consecutive years to complete its obligation under this Supplemental Environmental Project (SEP). The portion of the Consent Decree as it related to the El Paso SEP is attached below.

Asarco has spent $740,000 towards the SEP obligation. Prior to Asarco filing for Chapter 11 reorganization under the federal bankruptcy code and during a time of financial difficulty, Asarco offered numerous financial alternatives to the City of El Paso to complete the SEP obligation. The majority of Asarco's obligation would have been paid prior to Asarco filing for bankruptcy if the city had accepted any one of the Asarco alternatives. Now this claim is part of the Chapter 11 bankruptcy legal process.