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UNION ^CARBIDE CORPORATION METALS DIVISION <*. O. BOX K, KING CITY, CALIFORNIA 93930 July 14, 1981 JUL2< Mr. H. B. Eastman H. B. Eastman, Inc. 3329 W. Dudley Avenue Fresno, CA 93711 Dear Bill: For your Information, enclosed are copies of letters between Mr. Berry and Union Carbide concerning ore spillage. We have only one other complaint this year, but we are not sure that Mr. Berry will be satisfied with our response. Just wanted you to be aware of this particular situ ation. Very truly yours. Mine Superintendent end: 2 ccr J. L,, Myers J". B. House W. C. Xhurber /dm UCC 006215 UNION CARBIDE CORPORATION METALS DIVISION P. O. BOX K. KING CITY. CALIFORNIA ---------- July 13, 1981 ftECE/v JU12< Mr. E. B. Eastman H. B. Eastman, Inc. 3329 W. Dudley Avenue Fresno, CA 93711 Dear Bill: As you know, there have been a few conplaints in recent years about ore spillage or wind-blown dust along the public roads. I think you, your drivers, as well as Union Carbide, have done everything fea sible and reasonable to prevent such spillage and/or dusting. And the occasional accidental spills have been promptly cleaned up, to every one's satisfaction, I think. May I reiterate here the various precautions you must observe while hauling Union Carbide's asbestos ore. The choice of haulage equipmerit is yours, of course, and the "doubles" bottom dump trailers, used for many years, seem best adapted for this haul. 1. Each trailer shall have sturdy metal sideboards (not wooden) which will he repaired or replaced Immediately, if damaged. 2. The little "ledge" at the top of each trailer shall be covered with a steeply-sloping metal deflector, so that no material can accumulate there during loading opera tions, and Jiggle or blow off later while in transit. 3. Excessively-heaped loads-are not-permitted. Experience over the years indicates that a total net weight of 26 to 27 tons of ore, depending on the particular set of doubles, does not result in spillage or truck overweight. 4. After loading, each trailer must be completely covered with a tarpaulin, -fastened securely. Experience has shown that a mesh-type tarp will stay in place, and not . allow dusting at highway speeds. UCC 006216 H. B. Eastman, Inc. Fresno, CA 93711 Page 2 July 13, 1981 5* Each trailer must be equipped with strong, manually-operated hook-type latches on the hopper doors. These latches will be engaged at all times except during actual dumping on the ore stockpile at King City. 6. Excessive speed on the roads is not allowed. Obviously higher speed contributes to possible dusting as well as being more hazardous to all on the roads. 7- At the King City Plant, all trucks must drive over the "truck bumps", and through the tire wash pit before leaving the plant area. When the new north access road into the plant is completed, all trucks must leave the plant via this paved and vashed-dovn road. 8. Should a noticeable spill occur, it must be immediately reported to the boss trucker who will at once take the re quired steps to remove the spill, hauling such spilled ma terial to either the mill or to the mine. Depending on the size of the spill, shovels, brooms, or front end loader may be required. 9* While it is the trucker's responsibility to clean up all spills, specialized equipment is immediately available at the King City Mill (shovels, brooms,' flares, tarps, selfpropelled vacuum sweeper, etc.); and Union Carbide employees will take this equipment to the scene and participate in clean-up whenever necessary. 10. Please report any noticeable spill to either Roger Hopper, Mine Foreman, or myself. It may be necessary to report a spill to the shift foreman at the King City Mill, who wl.H contact the proper Union Carbide people and initiate any required actions. 11. Roger, myself, and others make daily trips to the mine, and thus keep a constant "patrol" of the road, particularly checking for- visible spillage. Bill, all the above isTon-going and nothing new. You have been very cooperative in the past in accomplishing the above mentioned precau tions. And your drivers, for the most part, the same ones year after year, are known to be capable, careful, and courteous to *~n who must use the steep, narrow, winding road between the mine and the mill. UCC 006217 H. B. Eastman, Ino. Fresno, CA 93711 ' Page 3 July 13, 1981 If you have any questions or suggestions regarding any part of this letter, please call me. Sincerely, UNION CARBIDE CORPORATION 0. yUcJk R. 0. Marsten Mine Superintendent /Ue cc: J. L. Myers J. B. Rouse W. C. Thurber > UCC 006218 INTERNAL CORRESPONDENCE CHERSiCALS AND PLAST3CS re (Was*) 0. Dexter om* 29th floor lacafiM Mew Yorlc Can to Roger Hopper /W. T. Cohan P. o. box k, king city, California ,, !> January 23, 1969 Oitgbafiag DpL Aiaring imtlf Jolt titM Two copies of the Report of the Investigation of Ore Reserves, Claims, and Leases of the TJCC asbestos mining area near Coalinga are attached. If you have any questions, please contact John Riddle or myself. R.O. Maraten ROM/cg UC'C 006219 H. it C i V i D MAY t> 1974 Investigation of Ore Reserves - Vs - Number of Mining Claims Being Maintained. UCC Coalings Asbestos Deposits Purpose of Report To determine if any of the approximately 339 current claims in the DCC Asbestos Mine Area, near Coalings, California, can be released without materially affecting Che ore reserves, accessibility to ore bodies, legal protection of mineral sices and road locations, water rights, inconvenience to competing asbestos producers, etc. History of Property The Coalings Asbestos Deposits cover many square miles of steeply moun~ tainous country. When the DCC Asbestos Project was getting underway, the thoughts at that time were to blanket the areas of good ore so as c_. <1) reserve as much as possible of the highest grade ore for ourselves, and ii (2) keep competitors from setting up operations of a similar nature in the same ore bodies. Property was acquired by leasing from other claim owners and by staking our own claims wherever possible. While a huge amount of asbestos ore was thus insured, competition was not kept out, and both Atlas and Johns-Manville have working pits and mills in Che same general area. Their reserves are not known by the writer, but presumably they are not hurting for orebodies. Claim and Lease ^formation LuCw mining claims are a maximum size o 600 x 1500 feet, containing 20 acres, and placer mining claims may be 160 acres maximum. All of the UCC mining area is covered, by lode claims, and some placer claims by others have been purchased or are being purchased by the payment of annual minimum royalties. Each claim requires a minimum of $100 of Improvement work annually. Proof of this expenditure maintains the claim year by year, and no other fees or taxes need be paid. These are all unpatented claims, which means Che land is not taxed. DCC has lapses with certain other claim owners whereby we will, in time, acquire the claims by payment over the years of substantial annual payments called minimum royalties. These minimum royalties must be paid each year, even though no ore is mined. If ore were mined on any lease, an earned royalty of 25^ per dry short ton of ore mined can be applied to reduce the UCC 006220 Pg. 2 minimum royalty for chat lease year only, but only up to the amount of the minimum royalty. All royalties end when the purchase price of the property is paid. Ideally, enough ore should be mined and shipped from each lease annually so that the earned royalty just equals the minimum royalty. 0b4 viously there is not enough asbestos demand to warrant mining in more than one pit at this time. All of our lease agreements stipulate that the total minimum royalties must be paid each year until all of the claims covered by the lease have either been released or paid for. Current Status of the Property The UCC Mining area is operated by the Mining and Metals Division, out of an office in Coalinga, California. The present mine superintendent has been connected with the workings since their beginning in 1959. There are four other full-time employees. Stripping and mining, ore hauling to the mill at King City, and road building are done by contractors as needed. There are no utilities at the mine site, and only one small building for warehouse purposes. It is thought that there are more claims than can ever be utilized in any profitable manner. The accompanying map covers about two-thirds of the area which, prior to 1968 had been more or less covered with 424 (approx imately) claims. In 1968, 85 of these claims were released (allowed to revert 4* Public Land where presumably anybody could again claim this property). The map shows two such areas where claims were released. A fiber-yield of 50T. or better was the cut-off point when these particular claims were released, whereas the ore outline on the map is now based on a 457. cut-off point. At the present, there are approximately 339 claims, both lode and placer, which comprise our property. Most of these were staked by UCC people, and are shown in brown on the map. Of the claims being purchased by min imum royalty payments to various lessors, the following table presents the approximate status; ' LEASE Condor EXTENT 7 claims TOTAL PAYMENT $500,000 PAYOUT YEAR 2011 MINIMUM ROYALTY $10,000 REMARKS UCC now owns of the Condor interest by purchase in bankruptcy proceedings Koski 41 7 claims was 30,050 -- -- Paid up by UCC, but most claims released in 1968. Koski #2 5 claims 50,000 1973 2,500 KirkOyster 11 claims New Idria 1280 acres SandovalGreen 39 claims was 20,500 500,000 280,000 -2006 2989 -- 12,000 10,000 Acquired by UCC in 1964 Part of this is a proposed mill sic,;. Total Current Annual Minimum Royalties $34,500 UCC 006221 Pg. 3 this table does not Include three Easement Leases which cover the mine road to the property. All of the mining to date has been on the Condor Lease propercy. Some $80,000 in minimum royalties has been paid to date to Condor Syndicate (UCC is now a partner in Condor Syndicate), but only some $30,000 of this has been earned royalty when ore was actually shipped to the mill. The mine road, which is the sole good access road to the area is well constructed and maintained. Claims, easements, and purchased grounds protect this road from the ore area to the county road. A good bit of the maintenance of this road is chargeable to the various claims as ''improvements'1, thus helping to satisfy the annual $100 per claim requirement. Other improvements can be stripping, construction of drill roads, access and haul roads to claims, etc. Explanation of Map The map shows only the northwest part of the UCC claims area. The areas not shown are thought to be too far from our present road and mining operations, and drill holes there to date do not show extensive high fiberyield bodies of ore. All of Koski #2 Lease, some claims of Roskl #1 Lease, most of the Sandoval-Green Lease, and many UCC claims are in this area not shown. The map is to a scale of 1000 feet to the inch and has been compiled from various other maps of property boundaries, drill holes, and some surface features. Only areas of claims are shown, not the claims themselves, as maps with this Information are already existing and will certainly have to be carefully checked to guide any decisions reached as a result of this report. The ore outlines shown in color are based on a 45X or better fiber-yield ore body. Fiber-yield and reflectance are Che two determining tests run on the 10 foot interval drill hole samples. These results are then averaged together for each hole, although many of the holes which have been drilled have not as yet been assayed. Fig. I compares reflectance and fiber-yield percentages, and shows that within the limits of good fiber-yield ore, the reflectance does not vary appreciably on the average. The topography of Che mine claims area is steeply mountainous, and it should be pointed out that no attempt has been made here to correlate terrain features with property boundaries or ore body delineation. Ore Reserves Fig. II is a tabulation of the estimated 45Z or better fiber-yield ore, expressed as tons of final dried asbescos products leaving the mill. A total of 185,000,000 tons of products (or 800,000,000 tons of ore in place) seems to be a conservative figure of the outlined bodies. Although an ore depth of 100 feet is used in the calculations, the drill holes are normally 150 to 200 feet deep, and a few have been pushed below 400 feet. No indication of the bottoming of the ore has as yet been found. The percentage reductions, by which ore in place is converted to dry asbestos products, is about what happens as the ore is mined, hauled, and processed. UCC 006222 Pg. 4 Ic will be noted that ore bodies occur on Mew Idria Lease and on Condor Lease, both of which require minimum royalty payments each year. Koskl Lease and Kirk-Oyster Lease, as well as all the UCC mining claims do not require minimum royalties. ------- ----------------- Recommendations Fig. Ill lists the various claims and leases and shows the amounts of annual assessment work and of minimum royalties for the entire area as it now stands and as it would be if the recommended 123 claims were dropped. This Indicates an annual savings of $12,300 in assessment work required, and $12,500 in minimum royalties. The ''West UCC Claims", between 0,000 and 9700E can be reduced by about 28 claims, but the remaining onetshould be left to protect the ore body as shown, and to keep water rights along the San Benito River. There is no change recommended in the central area of the property, except the releasing of the single Sandoval-Green claim. All claims and leases East of 27,800 E, and all claims and leases south of 16,000 N could probably be dropped. These are off the map area, but their approximate location is indicated. This then leaves the ore body and property as shown on the map. The 185,000,000 tons of equivalent products (which is 800,000,000 tons of ore in place) will furnish sufficient ore for many years of mill operations. The annual required costs will only be $21,100 for assess ments, and $22,000 for minimum royalties to Condor and to New Idria Lease owners. This report does not spell out exact numbers of claims and leases. Figures are approximate, and when and if decisions are made to cake action on these claims, exact numbers, locations, and nomenclature must be obtained from other maps. The writer has not consulted at all with company lawyers on the legal aspects of the property, and this would certainly have to be done before any action is taken. Likewise, the minesuperintendent and others in the Mining and Metals Division should be invited to give their opinions on whatever we propose to do. These people are presently in the process of examining some of the same property areas which are recommended, here for release, but complete drill hole data is not yet available. All the mine records, with the exception of some maps and drill-hole assays, are in Colorado, and have not been accessible to the writer. There is some question whether the three parcels which are the New Idria Lease, shown in purple on the map, should be retained or reLeased. These cost us $12,000 in minimum royalties each year and do not appear to tie favorably located as far as the orebody is concerned. They are held now because of the possibility of a future mill at the mine area. They do not UCC 006223 p. 5 protect the mine road, as might be inferred from the map, as the road across the New Idrla Lease has a separate easement with New laria. This! separate easement costs us $500 per year which Is credited as advance or minimum royalty against the New laria Lease lands, as long as that lease remains in effect. There is a peculiar clause in the New Idrla Lease which states in effect that, if by 1977 we have not removed from New Idrla Lease lands approximately 560,000 tons of ore, then each year thereafter we must mine 48,000 tons of ore on their lease. This is not a clause in other leases. There is a possibility of re-negotiating the New Idrla Leases to hold only the Land we want for a mill-site. This should be discussed with T. S. Ary and W. T. Cohan. 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Ce>s f ^ V... i j jf&Jik/ v**\ cX&4~> ........... .. . v!> C<- Z K Gcyjy -V> i[/">> *<>^ f Co j ,^-k P) H^r fltchyrj \X5 (jS^> -^.:i^y.7 >W/U*cL# by^^T r..i sy mm f l^lr. jptj OLOWa ny <~jl jj ; . j - , , ' \i] 5 ^ f >PhMq t-ily v./ tO^yy / , ^ ^ |f . - .... Ws&f/ t {.. *flP> ' ^ P''^C---- . /-(J ' A' 0 a ^ v. _ a l, ^\ v ' ^ t> * yi'--jV^0. Vo -- /^y Uj- Jfry)0~y^ r~,/ffs y-C^cr-v^-i csi^ lVv-^,v\xvw\ j-ao -^! .Ov^Wl^iL.--,-r -- ^-V_ \jjrv\4- \ A ^ - -vV<xCA*^- y~W-|VW\ \ - Jb&XJ S'JVOCAL Vjil ^ ^C-S A9 ___UCC 006234 v^; UN-iON CAr'3!DE CORPORATION ~:)>i PARK AVENUE. NSYJ YORK. N.Y. 10017 > LAW DEPARTMENT May 14, 1973 Mr. J. W. Rawlings Mining and Metals Division 38th Floor Re: M & M - Asbestos Mining Claims - California Dear Mr. Rawlings: In the course of discussions with John Emerson on the patenting of asbestos mining claims held by the Corporation in California, it has been suggested that we continue to do annual assessment work, on only a specified number of claims which are sufficient . to satisfy projected future needs and advise the Bureau of Land Management (BLM) that we do not plan to do any future assessment work on the balance of the claims which are presumably of lower quality than those that we would retain. Before taking this step, it occurred to me that you might want vto consider a sale of the claims we propose to discontinue assessL' ment work on rather than advising the BLM of no further interest. Very truly yours PJM:ld Patrick J. Morgan cc: Messrs. J. F. Emerson /;/C. P. Martin / W. C. Thurber R. F. X. Fusaro/File UCC 006235 i -4 9*2 INTERNAL CORRESPONDENCE METALS DIVISION 270 PARK avenue, mew york, new york iooi? To iNomc) tJf^rsion Loco* ion Floor Number Mr. F. E. Larrison Metals King City, CA potr November 4, 1976 Originating Dept. Floor Number Copy to Messrs. J. B. Browning Answering letter dote T. W. Caxmody J. F. Emerson/O.J. Malacame Sub/i KING CITY - SMOKING BAN J. G. Holmes E. A. Piersall J. V. Rawlings Dr. B. E. Rhodes E. W. Shortridge Dr. J. J. Welsh' * Confirming our several conversations on the subject, 1 recommend that we move tc ban smoking at the King City facility in the near future. 1 would suggest that we show the AIA film "Working with Asbestos" prior to making any official announcements on the new policy. This film which I understand will be available to you within the next week or two, deals very effectively with the asbestos health issue as it is affected by cigarette smoking. Perhaps, we could target January 1st to initiate this policy. Because of the difficulty in transferring employees from the areas of higher dust count in the King City mill to less dusty areas if sputum cytology tests disclose atypical cells, it has been agreed that we would not initiate such a clinical testing program at this time. The new engineering dust controls, the continued use of respirators in these dusty (albeit in compliance areas of the mill), and the smoking ban should provide ample employee protection. As you know, the State of California is considering sputum cytology as a mandatory requirement under the Cal OSHA regulations. Such a decision would, of course, make our concern in this area academic. WCT:jl W. C. THURBER UCC 006236