FOR IMMEDIATE RELEASE ENRD

MONDAY, APRIL 3, 2006 (202) 514-2007

WWW.USDOJ.GOV TDD (202) 514-1888

Settlement with AK Steel Will Require

Cleanup and Investigation of
Contamination of Middletown Plant
AK Steel Estimates Cleanup Work to Cost More
than $12 Million
WASHINGTON, D.C. – The United States, the state of Ohio, and two citizen
groups have reached a settlement with AK Steel Corporation resolving claims that
discharges from AK Steel’s Middletown, Ohio steel plant pose a threat to human
health and the environment, and violated federal and state environmental statutes
and regulations.

Under the settlement, AK Steel commits to clean up PCB-contaminated sediments

from two streams that are tributaries to the Great Miami River and to remove
contaminated soils from adjacent floodplain areas. The settlement, embodied in a
consent decree lodged with the U.S. District Court for the Southern District of Ohio,
also requires the company to perform a comprehensive assessment of other releases
of contaminants from the steel plant and evaluate cleanup alternatives. AK Steel
estimates the work required by the settlement will cost approximately $12-$13
million.

The Consent Decree also requires AK Steel to comply with specified requirements
of the Clean Air Act and Clean Water Act and pay a civil penalty of $460,000,
which will be split between the United States and the state of Ohio. The settlement
also includes AK Steel’s commitment to spend an additional $750,000 on an
environmentally beneficial project that will remove ozone–depleting refrigerants
from certain equipment at the Middletown plant.

“By removing contamination from areas currently known to contain significant

polychlorinated biphenyls (PCB) concentrations, AK Steel will immediately begin
cleanup work to protect the environment and reduce the potential for human
exposure to PCBs,” said Sue Ellen Wooldridge, Assistant Attorney General for the
Justice Department’s Environment and Natural Resources Division. “Equally
important, the systematic evaluation of releases of contaminants and potential
remedial alternatives will assure long term protection from contamination resulting
from decades of manufacturing operations at this plant.”

In cooperation with the state of Ohio, the United States filed suit against AK Steel
in June of 2000 to enforce provisions of the Clean Air Act, Clean Water Act, and
the Resource Conservation and Recovery Act (RCRA), the federal law that
regulates facilities that managed hazardous waste. The state of Ohio, the Sierra Club
and Natural Resources Defense Council joined the lawsuit. Among other things, the
lawsuit sought to address discharges or releases of PCBs from the plant into the
environment, including Monroe Ditch and Dicks Creek, which ultimately flow into
the Great Miami River. PCBs are persistent, bioaccumulative compounds that
produce a variety of toxic effects in fish and wildlife and are carcinogenic to
humans. This settlement provides for the removal of PCBs from Monroe Ditch and
two major sections of Dicks Creek, as well as adjacent floodplain areas.

“This action resolves issues related to a variety of environmental laws,” said

Thomas V. Skinner, EPA Region 5 Administrator. “It is the culmination of six years
of litigation and negotiations. This settlement will result in environmental
improvement in Dicks Creek basin for Middletown-area residents and workers at
the AK Steel plant.”

“This consent decree represents the hard work of the governments, the company and
the citizen groups to find a just resolution to the complicated environmental issues
that impact this facility and the Middletown community,” said Jim Petro, Attorney
General for the State of Ohio.

"I'm gratified that AK Steel, government and citizens have been able to agree on a
solution to address difficult issues which have gone unsolved for many years. As a
result of the hard work of all involved, we can look forward to leaving our children
a cleaner, safer environment," said Joseph P. Koncelik, Director of the Ohio
Environmental Protection Agency.

The Middletown plant produces a variety of steel products, including flat-rolled

steel for use in the automobile industry. Over the course of many years, wastes from
various industrial operations were disposed in several lagoons and landfills located
on the plant site. A number of contaminants, including PCBs, have been detected in
soils, sediment and other environmental media at and near the plant. Historically,
PCBs were used at the plant in electrical transformers and capacitors and in
hydraulic systems.

Other provisions of the settlement require AK Steel to:

-Implement specified restoration activities in Dicks Creek and Monroe Ditch

following removal of contaminated sediments in order to minimize channel incision
and restore biological productivity to the extent practical;
-Remove and properly dispose of PCB-contaminated sediments from previously
identified PCB “hot spots” at AK Steel’s plant;

-Install a phyto-remediation barrier to control seeps along a 3000 foot long section
along the south bank of Dicks Creek;

-Continue operation and maintenance of an existing interceptor trench system used

to control seeps previously discovered at the plant until no PCBs are detected in the
interceptor trench treatment system for a period of 18 months;

-Inspect the banks of Dicks Creek and Monroe Ditch for new seeps on a regular
basis, sample any seeps discovered and submit a plan for control of the seeps, as
appropriate;

-Maintain existing signs and fencing designed to limit human contact with PCBs in
Dicks Creek;

-Comply with all federal and state statutes applicable to sinter plant operations, if
AK Steel later decides to restart the sinter plant, and conduct a particulate emissions
test of the sinter plant promptly after restarting the plant;

-Comply with specified permitting requirements under Ohio state law; and

-Pay $450,000 to the citizen groups for their claim for costs and attorney fees.

A copy of the consent decree lodged today is available on the Department of Justice
Web site at http://www.usdoj.gov/enrd/open.html.

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