December 21, 1999

Dear Apache Neighbor:

We would like to provide you with the status of several ongoing issues at Apache. First, some of you may have seen an ambulance at the plant on the morning of Thursday, December 16, 1999. The ambulance was summoned to the plant by Apache personnel when an Employee of a Contractor showed symptoms of a heart attack while working on the weigh scale on plant. Fortunately, an Apache Employee was nearby and was able to seek immediate assistance. Apache's Emergency Response training contractor, Captain Randy Redmond of the Sierra Vista Fire Department, was on site training Apache personnel. He was able to treat the gentleman with oxygen and first-aid while the ambulance was in transit. The ambulance arrived within 6 - 7 minutes. The ambulance transported the gentleman to the Benson Hospital, where he was flown by air ambulance to Tucson. In Tucson, he was diagnosed with two collapsed arteries that required emergency surgery. We are pleased to report that he is recovering well, and that the actions of Apache personnel and contractors probably saved his life.

In November, we updated neighbors about the test burn of TNT-contaminated soil at Apache. If you recall, the test burn went very well, with no concerns being identified. The actual burn and removal action was initially scheduled to occur in early December. However, the burn was delayed by the Agencies for a couple of weeks. We now expect to start the burn around December 27, 1999, and finish up either just before or just after the first of the year. You may see smoke coming from Apache during daylight hours during this period of time.

As a reminder, the process for removing the soil involves three phases: excavation; on-site pre-treatment (burning); and, off site treatment/disposal. The EPA and Hargis + Associates will provide oversight of the removal which will be performed by Denova Environmental, Inc. The TNT materials will be hand excavated and moved to the pre-treatment area located on Apache’s property. Because of the sensitive nature of TNT, Apache and the EPA have decided to pre-treat the TNT materials on-site prior to transporting them off site. Pre-treatment will consist of burning the high concentration TNT in a controlled environment to reduce the concentration of TNT to a level where it may be transported safely. Pre-treatment was deemed necessary to avoid transporting potentially dangerous explosive materials from Apache to the ultimate disposal facility, which is located in Aragonite, Utah.

Necessary safety precautions will be fully implemented during the burn and removal action. Appropriate emergency personnel have been notified and will remain on alert throughout the duration of the remediation activities. Apache is committed to maintaining a safe and healthy workplace for our employees and for the surrounding community. Should anyone like more information regarding TNT, there is an informative web site at "www.atsdr.cdc.gov/tfacts81.html". If you have any questions please call Cindi Byrns at 520-720-2114 during normal work hours, or ask for the Shift Supervisor at 520-720-2150 after hours.

Due to the heightened visibility and concern over access to explosives during the upcoming Y2K period, Apache has hired extra security to patrol our explosives magazine area 24 hours per day, seven days per week. Although we expect no attempted break-ins, we believe it is worth the extra cost to provide tighter security over the next couple of weeks. Thanks for supporting Apache.