Environmental

The Site was used by S.D. Warren Company d/b/a Sappi North America (“Sappi”) and its predecessors for the manufacturing of paper from approximately 1900 until 2009. Operations consisted of importing logs and wood chips, chemical digesting to produce pulp, bleaching, feeding the slurry into the paper machines (five total), drying, cutting and coating. Ancillary operations included coal storage for the boilers, wood storage, lime storage (a by-product of the pulping process), storage of process chemicals in above ground tanks, water and wastewater treatment.

Numerous environmental investigations have been conducted between April 2012 to present for Baseline Environmental Assessment and due care purposes. These investigations involved soil, groundwater, and soil gas sampling. Results from these investigations identified the presence of some contaminants in the soil and groundwater at concentrations that exceed EGLE generic residential cleanup criteria (GRCC) and require remediation. Soil contaminants of concern primarily include various metals in the soil, with isolated locations where polynuclear aromatic hydrocarbons (PNAs) and dioxins have been identified. Groundwater contaminants primarily include moderate amounts of metals, sulfate, total organic carbon, and PFAS. Soil gas sampling has identified hydrogen sulfide, methane, and ammonia generation. These contaminants are generally isolated and are not pervasive throughout the 120 acre property.

Pure Muskegon has received various grants to assist in the remediation of the soil and groundwater contaminants, including a $5.0m grant from the state to facilitate the construction of a groundwater remediation system on the property. The remediation system will operate through at least 2020. The intent of the remediation system is to reduce sulfate and total organic carbon concentrations in the groundwater. It is anticipated that remediation efforts will greatly enhance the aesthetic and environmental condition of the groundwater. However, portions of the property may still require engineering controls to ensure no unacceptable exposures exist relative to remaining groundwater contaminants and future land-use.

Pure Muskegon believes that its remediation activities will be completed within the next 12 months to allow for multi-use development. More information on the grants and the current status is available upon request.