Statement of Environmental Compliance

    The Federal Recycling Technologies, Inc. (FRT) patented technology to recycle scrap tires
through a pyrolysis process is designed to comply with stringent environmental considerations.

    The FRT process is designed to operate well within permittability levels.  For example,
the sulfur content in tires is never oxidized in the process.  The sulfur remains a solid and
becomes part of the carbon black stream.  The carbon black with sulfur content can be used
 in tire compounding.

    FRT's combustion chamber, providing indirect heat to the pyrolysis chamber, is kept under 2000°F
by introducing excess air to keep temperatures below the level which produces nitrogen oxides.

    The engine generator set will have a custom designed catalytic converter on its exhaust gas stack
to meet any regulatory environmental requirements.
PLANT DISCHARGES

SOLID WASTE
Filter cake (diatomaceous earth),
   Tire Fabric (fiberglass) and Tire
   washdown slurry                              240 Tons/Year
Office and Lab Waste                            4 Tons/Year

LIQUID WASTE
Sanitary waste water                        500 gallons per day
Tire Wash                                          500 gallons per day
Process Water                                  None discharged

HAZARDOUS WASTE                    None discharged

CHEMICAL WASTE                        None discharged

OIL AND SMOKE                             None discharged

ENGINE GENERATOR STACK GAS   
NOx                                 <5.0 lbs/hr
CO                                  <5.0 lbs/hr
SO2                                <0.6 lbs/hr
VoC                                <5.0 lbs/hr

FURNACE STACK GAS
H2S                                <10 parts/M - 0.1 lbs/hr
NOx                                <10 parts/M = 0.1 lbs/hr
SO2                                <10 parts/M = 0.1 lbs/hr
CO                                  <10 parts/M = 0.1 lbs/hr
PM10                             <.02 lbs/hr

M = million                            


Special Operating Requirements

Source and quantity of available scrap tires.  Plant capacity is 96 short tons per day. 
All rubber tires can be recycled when properly cut and sized for recycling.
Plant would operate on a 24/7 basis.

Availability of land (10-acre minimum) adjacent to good highways - a rail spur and/or
water transportation is desirable.

Electric power (3-phase, 440/480 volt plant service), natural gas, portable water,
and suggested method of sanitary waste disposal. 

Utility requirements:

        Electric power:            2.4 MM Kwh/year1
        Gas:                           25,000 Mcf/year
        Water:                          5,500 gallons/day
        Sanitary waste water disposal:    500 gallons/day
        Solid waste to a sanitary land fill:    240 tons/year

M = million

Availability of civil, mechanical, and electrical engineers and architects.

Availability of building manufacturers and contractors for a 30,000-square-foot building
with 24-foot sidewalls.

Availability of construction labor force and plant operating labor and management.




9-23-04