Project  XL  Progress Report
            ExxonMobil  Corporation
            In 1995, the U.S. Environmental Protection Agency (EPA) embarked on a series of innova-
            tive initiatives in an effort to test new ways to achieve greater public health and environmental
            protection at a more reasonable cost. Through Project XL, which stands for excellence and
            Leadership, EPA enters into specific project agreements with public or private sector spon-
            sors to test regulatory, policy, and procedural alternatives that will produce data and experi-
            ences to help the Agency make improvements in the current system of environmental protec-
            tion. The goal of Project XL is to implement 50 projects that will test ways of producing
            superior environmental performance with improved economic efficiencies, while increasing
            public participation through active stakeholder processes. As of January 2001, EPA has
            reached its goal of 50 projects in the implementation phase. EPA Project XL Progress
            Reports provide overviews of the status of XL projects that are implementing Final Project
            Agreements (FPAs). The progress reports are available on the Internet via EPAs Project XL
            Web site at XL. Hard copies may be obtained by contacting the
            Office of Policy Economics and Innovation's (formerly the Office of Reinvention) Project XL
            general information number at 202-260-5754. Additional information on Project XL is
            available on the Web site or by contacting the general information number. The information
            and data presented in the January 2001 Progress Report is current as of December 2000.


            ExxonMobil (formerly Exxon Company USA) is a petroleum and petrochemical company
            responsible for all domestic oil and gasoline operations in 12 states, the Gulf of Mexico, and
            the Pacific Ocean off Southern California and Alaska. The Fairmont Coke Works Site,
            located in Fairmont,
            Marion County, West
            Virginia, was placed on
            EPAs National Priorities
            List (NPL) on December
            23,1996. ExxonMobil is
            the first XL project related
            to the Comprehensive
            Environmental Response,
            Compensation and Liability
            Act (CERCLA), also
ExxonMobil XL Project
Fairmont, West Virginia
Major Milestones
• 	 7 	
June 30, 1998
First Meeting of
Fairmont Community
September 10, 1998
Exxon XL Proposal
First Quarter 1999
Demolition of Buildings
May 24, 1999
Final Project Agreement
	 7 	 •
June 2000
Action Memo
    Liaison Panel

ExxonMobil XL Project                                                                    1-31-01
 known as Superfund. The site sits along the Interstate-79 industrial corridor, midway between Morgantown and
 Clarksburg, West Virginia. A corporate predecessor of ExxonMobil, Standard Oil of New Jersey, owned the
 site from 1920 to 1948. Sharon Steel Corporation bought the site in 1948 and operated a coke production
 facility there until 1979, when it ceased operations due to the company's inability to comply with Clean Air Act
 (CAA) and Clean Water Act (CWA) regulations. ExxonMobil is the only Potentially Responsible Party (PRP)
 working with EPA and the West Virginia Division of Environmental Protection (WVDEP) under an Administra-
 tive Order on Consent to address environmental concerns at this site. ExxonMobil reacquired the property and
 purchased approximately 100 acres of the Fairmont Coke Works Site in order to help facilitate cleanup and

 Approximately 50 acres had been utilized by Sharon Steel for coke plant operations, waste treatment, and
 disposal. These 50 acres represent one of the few large parcels of flat, developable industrial land along Inter-
 state-79 in this part of West Virginia. The remainder of ExxonMobil's property consists of wooded hillside,
 adjacent to the Monongahela River. The areas north, east, and south of the site are residential and industrial.
 The area west of the site is mostly undeveloped.

 In the EPA, ExxonMobil has committed to achieve superior environmental performance by providing site
 improvements and enhanced community involvement not typically required by Superfund, while cleaning up the
 site in less time and at lower cost. Through a combination of enforceable requirements and voluntary goals, the
 ExxonMobil XL project is expected to improve the local environment and economy by:
 • focusing on the economic redevelopment of the Superfund site to demonstrate that consideration of future
   beneficial uses early in the Superfund site management process can help improve the local economy;
 • providing additional environmental benefits to the community that are not typical for Superfund sites, such as
   demolishing onsite structures both to improve the aesthetic value of the property and to facilitate redevelop-
 • employing faster, more efficient cleanup and redevelopment processes, such as streamlining the risk assess-
   ment process and reducing the administrative burden; and
 • placing deed restrictions on the property to ensure that future activities do not result in any unacceptable risk
   to human health or the environment.

 The Experiment

 The ExxonMobil project is testing changes to the traditional Superfund process in order to clean up the
 Fairmont Coke Works Site in half the time a normal cleanup would take by using Superfund "non-time-critical"
 removal authorities. The changes affect: (1) the site characterization and cleanup; (2) the risk assessment pro-
 cess; (3) the management of onsite landfills; (4) the mitigation requirements onsite for EPA-created wetlands; (5)
 the stakeholder and community involvement process; (6) the reduction of paperwork requirements; and (7) the
 quality assurance process.

 To facilitate and increase the likelihood that interested developers will use the site after cleanup for commercial
 or industrial development, ExxonMobil proposes to: demolish onsite structures; engage the services of redevel-
 opment consultants and companies to determine how to make the site amenable to development; and work with
 local stakeholders to identify redevelopment options by preparing, among other things, a "potential for redevel-
 opment" site assessment, an environmental assessment of the property, and a real estate market overview of the
 site with market options. ExxonMobil has used innovative stakeholder involvement techniques such as public
 availability sessions to explain project plans and obtain input on future site uses. This project has received a high
 degree of local community support.

 ExxonMobilXLProject                                                                    1-31-01
The Flexibility
Superfund sites are typically approached in a phased process. After a site has been listed on the National
Priorities List (NPL), a Remedial Investigation/Feasibility Study (RI/FS) is conducted at the site to assess risk
and evaluate alternative technologies for remediation. The RI/FS culminates in a Record of Decision (ROD),
which outlines the actions to be taken and documents the rationale behind the decision to take action at the site.
Subsequently, the Remedial Design (RD) phase determines the specifications for cleanup actions which are
implemented during the Remedial Action (RA) phase. These phases involve the submittal and approval of
various documents and public comment periods. It is not uncommon for this process to require several years.
Another cleanup approach in the Superfund program is the removal action, which can be completed in a signifi-
cantly less amount of time. ExxonMobil has proposed to conduct the cleanup of this Superfund site as a series
of short removal actions. An RI/FS and ROD are not required for a removal action. Long term remediation will
occur if deemed necessary. This flexible approach is expected to reduce the time and cost needed to complete
the cleanup.

The ExxonMobil XL project establishes a commitment to minimize the impact of a Superfund site on human
health and the local environment by expeditiously cleaning up the site and to work with the local community to
plan the response action and ensure the redevelopment of the site. As an incentive to achieve environmental
performance, EPA and WVDEP will allow more flexible and cost-effective processes regarding: (1) the use of
streamlined removal actions in order to expedite cleanup; (2) the mitigation processes for wetlands created by
EPA during previous removal actions; (3) the data validation reporting requirements; and (4) the risk assessment
criteria and analyses. These processes are available through the application of various technical and administra-
tive alternatives within CERCLA and the CWA.

The statutory programs, and the EPA offices administering the programs, that affect the ExxonMobil XL project
are the:
• Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) administered by the
  Office of Solid Waste and Emergency Response; and
• Clean Water Act (CWA) administered by the Office of Waste water Management and Office of Wetlands,
  Oceans, and Watersheds.
Coordination of Removal and Remedial Actions. Unlike at most Superfund sites, this project allows
ExxonMobil to begin the removal and remedial processes concurrently rather than sequentially. Because
ExxonMobil does not have to wait for completion of the removal action before beginning long-term remedial
actions, the entire process is expedited.

Site Investigation Process. EPA is allowing ExxonMobil to conduct an Engineering Evaluation/Cost Analysis
(EE/C A), temporarily replacing a Remedial Investigation/Feasibility Study (RI/FS). The EE/CA can be con-
ducted faster than a traditional RI/FS, in part because the future land use of the site has already been determined
to be industrial/commercial.

Evaluation of Sampling Data. EPA has agreed to allow ExxonMobil to use its eight-step Data Usability
Assessment (DUA) for the overall qualitative evaluation of the sampling data since ExxonMobil has invested
significant time and money in proving that its quality assurance program is equivalent to Region 3 Modifications
to the National Functional Guidelines. EPA, WVDEP, and ExxonMobil have agreed on terms for verification
and recalculation of laboratory-reported concentrations for all EE/CA data.

Flexible Site Management Process. EPA is allowing ExxonMobil to designate the site's western area, which
encompasses all of the waste management units (landfills, waste sludge areas and impoundments), as a single

ExxonMobil XL Project                                                                    1-31-01
 area of contamination (AOC). The more common practice is to consider each waste source as a separate
 AOC. Although the decision to designate this type of area an AOC is not unique, it is unusual to make such a
 determination at the onset of the investigation. This designation will allow onsite management/disposal of wastes
 to proceed without triggering Resource Conservation and Recovery Act (RCRA) land disposal restrictions.
 Under RCRA, disposal or placement of RCRA classified hazardous wastes without previous treatment is
 generally restricted. Under the AOC concept, EPA has designated activities not considered land disposal or
 placement so that on-site waste management can proceed in a regulatory compliant and efficient manner without
 being construed as placement. This designation is justified due to the close proximity of the waste management

 Flexible Wetlands Mitigation Requirements. EPA is allowing for flexible wetlands mitigation for those wet-
 lands that may have been created by EPA during earlier removal actions.

 Promoting Innovation and System Change

 Project XL provides EPA opportunities to test and implement flexible approaches that protect the environment
 and advance collaboration with stakeholders. EPA is continually identifying specific ways in which XL projects
 are helping promote innovation and system change. The innovations and system changes emerging from the
 ExxonMobil XL project are described below.

 Coordinating Redevelopment Activities with  Cleanup Actions. At the same time that removal and remedial
 processes go forward, ExxonMobil is proceeding with redevelopment-related activities. ExxonMobil has
 engaged the services of real estate consultants  and companies to determine how to make the site most amenable
 to redevelopment and to determine how best to market the site. ExxonMobil is also: (1) working with local and
 state redevelopment agencies to identify redevelopment options and developers; (2) soliciting the opinions of the
 community; and (3) improving the site's aesthetics and marketability by demolishing onsite structures.

 Paperwork Reduction. Draft copies of reports required under the EE/CA process will be electronically trans-
 mitted, final reports distributed on compact disk, and analytical data made available to EPA and WVDEP,
 through the testing laboratory's data management system. There are passwords established to allow regulators
 access to this system. All pertinent documents will be available on the Project XL Web site.

 Potentially Responsible Party (PRP) to Fund State Participation in the XL Process. ExxonMobil and the
 state have agreed that ExxonMobil, the PRP, will fund the state's involvement in this XL project in order to
 avoid the delays inherent in seeking Federal funding, in pursuing civil action, or in entering into cooperative
 agreements. Direct funding will reduce the state's financial and administrative burden and increase its ability to
 participate in Project XL.

 Community Involvement. ExxonMobil has used innovative stakeholder involvement techniques such as public
 availability  sessions and frequent stakeholder meetings to explain project plans and obtain community perspec-
 tive on future site uses. The company has also  provided a $5,000 grant to the local high school for students to
 enhance a nature trail and develop a freshwater pond. This project will help local citizens understand the interac-
 tion of various life forms with the environment. Through these efforts, this project has received a high degree of
 local community support. The project provides an opportunity to analyze a unique approach to working with
 community members and other stakeholders throughout the process of selecting and implementing a cleanup
 remedy and determining the future uses of the site. The techniques used in this project may be useful to other
 communities with similarly distressed properties by allowing them to reclaim those properties as valuable and
 productive assets.

 ExxonMobil XL Project
Project Commitment Summary
This table and the environmental performance section that follows summarize progress in meeting the FPA's commit-
ments for the Fairmont Coke Works site.
Commitment Status
Removal Actions
ExxonMobil will demolish most of the existing struc-
tures on the site regardless of condition or potential
ExxonMobil will conduct an Engineering Evaluation/
Cost Analysis (EE/CA).
ExxonMobil will complete non-time critical removals
specified in the Action Memorandum.
ExxonMobil will implement post-removal site con-
Completed in third quarter of 1999.
Report on the waste management area was com-
pleted in first quarter of 2000.
To begin after completion of the EE/CA. An action
memo was signed in June 2000. The non-time critical
removal action to address the waste management
area has been initiated.
To begin after the non-time critical removals are
Reuse/Redevelopment Planning
ExxonMobil will work with the EPA, WVDEP, and
the community to facilitate productive reuse of the
As part of the site disposition strategy, ExxonMobil
will work with all parties to develop a real estate
market analysis, including an analysis of the potential
redevelopment, an environmental assessment, a
market overview, and the identification of market
ExxonMobil will work with all parties to develop the
financial analysis portion of the site disposition
ExxonMobil will work with all parties to develop the
site disposition plan portion of the site disposition
ExxonMobil has been scheduling approximately
monthly meetings with all parties to discuss all
aspects of the project.
Completion of a preliminary site assessment is
aniticipated in the third quarter of 2000. Preliminary
marketing should begin in fourth quarter of 2000.
The financial analysis has not yet been addressed.
The site disposition plan has not yet been addressed.

ExxonMobil XL Project
Commitment | Status
The parties (ExxonMobil, EPA, WVDEP, and the
community) will work together to plan and imple-
ment response actions.
Conduct an RI/FS, if necessary, after completion of
the removal closeout.
EPA will prepare a Record of Decision (ROD), if
ExxonMobil will implement the remedy specified in
the ROD.
The parties have been holding meetings approxi-
mately once a month since June 1998.
To be done after completion of the Action Memo-
randum, if needed.
To be done after the RI/FS, if needed.
To be done after the ROD is signed.
Wetlands Identification/Mitigation
ExxonMobil will survey and map the wetlands
created during EPAs interim removal actions.
ExxonMobil will evaluate the maps. If necessary,
mitigation requirements will be proposed.
In the process of any remediation, ExxonMobil will
improve designated wetland areas.
A meeting was held in November 1999, to
discuss assessments performed by the West
Virginia Department of Natural Resources, U.S.
Fish & Wildlife, and EPA Region 3. EPA has
determined that the wetland areas are part of
existing drainage system, therefore, no mitigation
will be required.
To be determined during site remediation.
General Reporting
Quarterly report of removal/remediation progress.
ExxonMobil will explore various electronic means
for transferring data, communications, and reports.
Quarterly reports from ExxonMobil 's engineering
contractors began in the fourth quarter of 1998,
and are available through the third quarter of
1999. However, EPA has determined that the
minutes from the monthly meetings have provided
sufficient information and has therefore suspended
the quarterly report requirement.
Most reports and communications to date have
been transmitted electronically.
Stakeholder Involvement
ExxonMobil has committed considerable resources
toward seeking out the input, involvement, and
support of stakeholders in the cleanup and redevel-
opment processes.
ExxonMobil will fund WVDEP participation in
Project XL.
ExxonMobil has hired consultants to conduct
interviews to identify members for the FCLP, and
to keep the community informed. Monthly com-
munity meetings, facilitated by ExxonMobil -hired
consultants, are held with all stakeholders.
The state is reimbursed directly by ExxonMobil
for time and expenses incurred.

 ExxonMobil XL Project
Environmental Performance

This section summarizes progress in meeting the environmental
performance commitments described in the FPA in comparison to
the baseline-what would have been required under the conventional
Superfund site management process. The baseline is derived from
an overall impression of best practices in the program. There is no
single baseline that applies to all Superfund sites because the
cleanup approach for each Superfund site is based on site-specific
factors and after extensive evaluation of individual site characteris-
tics. Under the removal action order, the following commitments are
enforceable: a human health risk assessment, the AOC concept,
flexible wetlands mitigation, redevelopment, stakeholder involve-
ment, quality assurance, and recordkeeping. There are no regulatory
requirements for the other commitments.

The initial step in the cleanup was to demolish the structures and
buildings onsite. The concrete and brick from the old structures
have been crushed and turned into fill material to use for site grading
in later stages on the project. Then, an EE/CA was performed to
better analyze the waste management areas on the western portion
of the site. The EE/C A identified polycyclic aromatic hydrocarbons
(PAHs), and breeze (very fine coal powder), as substances of
potential concern. The risk of direct contact with these contaminants
at the site will be addressed by a non-time critical removal action
(NTCRA) described in a June 2000 Action Memo prepared by
EPAs Office of Emergency and Remedial Response (OERR).

The Action Memo estimates the recycling of approximately 13
percent, or 7,600 cubic yards, of the waste from the western
portion of the site. For example, much of the breeze at the site,
although fine, still has value as an energy source and will be blended
and burned as fuel. The remainder of the waste will be disposed of
onsite in a RCRA subtitle C landfill, a landfill that accepts hazardous
waste. In addition, the process of remedy selection has been
streamlined through the use of the landfill presumptive remedy
guidance. Presumptive remedies are preferred technologies for
common categories of sites, based on historical patterns of remedy
selection and EPAs scientific and engineering evaluation of perfor-
mance data on technology implementation. The objective of the
presumptive remedies initiative is to use the program's past experi-
ence to streamline site investigation and speed up selection of
cleanup actions. This removal action is underway and is anticipated
to be completed in fall 2001. Concurrently, preparation for a
second EE/C A is underway to address soil contamination and hot
spots in the eastern process area.

In addition, EPA has determined that the onsite wetlands are part of
existing drainage systems, therefore, in accordance with the FPA,
Fairmont Coke Works — 1/14/99 —
Beginning the demolition. Trackhoe
demolishes some of the onsite structures.
This demolition will help to prepare the site
for redevelopment.
Fairmont Coke Works — 4/5/99 — The
demolition is near completion, with many of
the structures completely leveled.
Fairmont Coke Works — 2/10/2000 — By
the winter, all demolition work is complete.
This view looks across the snowcovered site,
now leveled for future redevelopment.

ExxonMobil XL Project                                                                 1-31-01
 no mitigation will be required. However, during the course of site remediation, these areas may need to be
 regraded to improve drainage.

 Stakeholder Participation

 ExxonMobil has committed considerable resources toward seeking out and obtaining the input, involvement,
 and support of parties who have a stake in the environmental impacts of this project. The organizations directly
 involved in negotiating the FPA are the EPA, the WVDEP, the Fairmont Community Liaison Panel (FCLP), and
 ExxonMobil Company USA. The FCLP is a panel of approximately 25 local citizens identified from a wide
 range of professional, academic, political, and private sources. The community panel activities are coordinated
 by a facilitator hired by ExxonMobil.

 In order to facilitate the formation and activity of the FCLP, ExxonMobil:
 • hired consulting firms to conduct a series of community interviews to identify issues of concern and percep-
   tions, and to solicit participation in the panel;
 • scheduled monthly meetings to develop the FPA and implement the XL project;
 • established a toll-free project hotline for use by the community;
 • used media (radio, TV, newspapers), direct mailings, a community information line, and community group
   meetings to disseminate information to, and conduct surveys of, area residents; and
 • committed to pay for the WVDEP cost for participating in the XL project.

 Six-Month Outlook

 The key focus areas for the continued implementation of the FPA over the next six months will be the following.
 • Continue approximately monthly meetings of the stakeholders (ExxonMobil).
 • Complete non-time critical removal at the western portion of the site (ExxonMobil).
 • Begin work on the second EE/CA to assess the risks at the eastern process area (ExxonMobil).

 Project Contacts

 • Art Chin, ExxonMobil Company USA, (908) 474-7395.
 • John Hannig, ExxonMobil Company USA, (908) 474-6637.
 • Hilary Thornton, EPA Region 3, (215) 814-3323
 • John DuPree, EPA Headquarters, (202) 260-4468.
 • Tom Bass, WVDEP, (304) 558-2745.
 • Michael Cummings, FCLP, (304) 367-1449.
 • Nick Fantasia, FCLP, (304) 366-3700.

 Information Sources

 The information sources used to develop this progress report include (1) the FPA for the ExxonMobil XL
 project; (2) Project XL Stakeholder Involvement Evaluation -Final Draft Report, May 2000; (3) focus
 group discussions in December 1999 with representatives of ExxonMobil Corporation, Federal and state
 regulatory agencies, and representatives of the local community; and (4) ProjectXL Progress Report Exxon
 Company USA, December 1999.

 ExxonMobilXLProject                                                                    1-31-01
Action Memorandum: A decision document that substantiates the need for a removal action, identifies the
proposed action, and summarizes the rationale for the removal action selected. It parallels the function of a
Record of Decision (ROD) in traditional remedial actions.
Area of Contamination (AOC): A waste source (e.g., waste pit, landfill, waste pile) and the surrounding
contaminated soil.
Baseline: The measure by which future environmental performance can be compared.

Clean Air Act (CAA): The CAA is the comprehensive Federal law that regulates air emissions from area,
stationary, and mobile sources. This law authorizes EPA to establish National Ambient Air Quality Standards
(NAAQS) to protect public health and the environment.

Clean Water Act (CWA): The CWA sets the basic structure for regulating discharges of pollutants to waters of
the United States. The law gives EPA the authority to set technology-based effluent standards on an industry
basis and continues the requirements to set water quality standards for all contaminants in surface waters. The
CWA makes it unlawful for any person to discharge any pollutant from a point source into navigable waters
unless a National Pollutant Discharge Elimination System (NPDES) permit is obtained under the Act.

Comprehensive Environmental Response, Compensation and Liability Act (CERCLA): CERCLA is the legisla-
tive authority for the Superfund program which funds and carries out EPA solid waste emergency and long-term
removal and remedial activities. These activities include establishing the National Priorities List (NPL), investi-
gating sites for inclusion on the list, determining their priority, and conducting and/or supervising cleanup and
other remedial actions.

Data Usability Assessment (DUA): ExxonMobil's eight-step quality assurance process by which data collected
are quantified, and where necessary qualified, and the data's overall usability determined.

Engineering Evaluation/Cost Analysis (EE/CA): A report that summarizes site characterization data and deter-
mines medium-specific, risk-based goals for protecting human health and the environment, as well as summaries,
the scope, effectiveness, implementability, and cost of the various alternatives that meet the objectives of re-
moval actions that are not time critical.

Final Project Agreement (FPA): The FPA outlines the details of the XL project and each party's commitments.
The project's sponsors, EPA, State agencies, Tribal governments, other regulators, and direct participant
stakeholders negotiate the FPA.

Media: Specific environments —air, water, soil— which are the subject of regulatory concern and activities.

Multimedia: Several environmental media, such as air, water, and land.

National Priorities List (NPL): EPA's list of the most serious uncontrolled or abandoned hazardous waste sites
identified for possible long-term remedial action under Superfund. The list is based primarily on the score a site
receives from the Hazard Ranking System. EPA is required to update the NPL at least once a year. A site must
be on the  NPL to receive money from the Trust Fund for remedial action.

Potentially Responsible Party (PRP): A PRP is the owner or operator of a contaminated site, or the person or
persons whose actions or negligence may have caused the release of pollutants and contaminants into the
environment, requiring a remedial action response under CERCLA and the Superfund Amendments and Reau-
thorization Act of 1986 (SARA). The PRP is potentially liable for the cleanup costs in order to compensate the
government for its remediation expenditures.

        ExxonMobil XL Project
         Record of Decision (ROD): A legal document signed by the EPA that describes the final cleanup action or
         remedy selected for a site, the basis for the EPAs choice of that remedy, public comments on alternative rem-
         edies, and the cost of the remedy selected.

         Remedial Action: The phase of the cleanup process in which waste is actually treated, disposed, or contained.

         Remedial Investigation/Feasibility Study (RI/FS): The in-depth planning and investigation of a site during which
         the nature and extent of contamination and risk are determined, and treatments and alternatives are evaluated.

         Removal Action: An early or short-term action in the Superfund process conducted to stabilize or clean up a site
         in order to reduce the immediate risk to the public or the environment.

         Superfund: The program operated under the legislative authority of CERCLA and SARA that funds and carries
         out EPA solid waste emergency and long-term removal and remedial activities. These activities include estab-
         lishing the NPL, investigating sites for inclusion on the list, determining their priority, and conducting and/or
         supervising cleanup and other remedial actions.

         Wetlands: Ecosystems in which the water table is at or near the surface, such as a swamp or marsh. The sluggish
         water in these systems often create rich habitats for plants and wildlife.