Development Restrictions (Property North of 4100 S. and West of 8400 W Purpose and Potential Effects Sept 25, 2018

Reasons for Development Restrictions Development restrictions are needed to: Preserve the long-term viability of the Bacchus production facility Protect the public from any harm that could result from our operations and the materials we use Origin of development restrictions: The County, West Valley City, and Hercules (now Northrop Grumman) pursued restrictions on residential/commercial development in late 1980s Municipal Code and the County’s Hercules Area Master Plan (Nov, 1987) were adopted based on the recommendations of a Citizen’s Committee and an independent consultant hired by the County (Jack Reed of Sandia National Laboratory) Development restrictions protect public safety while ensuring long-term viability of Bacchus facility

Primary Goal of Municipal Code Restrictions Land south of 4100 South and east of 8400 W. houses a U.S. Navy facility (NIROP), where we manufacture products that are critical to our country’s security and defense Land being annexed and zoned P-C is designated as a 0.3 psi overpressure zone Property within 0.3 psi overpressure zone could be subject to significant overpressure waves and debris fragments in the event of an explosion Development limitations were imposed to protect the public from potential incidents

Potential Hazards from Bacchus Operations Operations at NIROP today are the same as those performed when the County’s Hercules Area Master Plan was developed NIROP facility has not had any major high explosive events, but explosions have occurred at other locations that process and handle the same materials Before After Residential development close to NIROP presents potential hazards

Specific Hazards from Operations Performed Risk of damage in 0.3 overpressure zone increases with addition of high density housing Structures reflect and magnify pressure waves Greatest risk is injuries from glass fragments traveling at high speeds Only way to mitigate: No windows on walls facing NIROP facility No or very small windows on walls not facing NIROP facility Very small windows not conducive to residential or retail occupancy Industrial uses are more suitable and pose less risk to the public Residential development close to NIROP presents potential hazards

Northrop Grumman Impact in Utah Annual Utah sales: ~$1B Utah total employees: ~4,870 (665 at Bacchus) Utah annual payroll: $280M Annual Utah state and local taxes: $20.5M Purchases from Utah suppliers: $165M Annual charitable contributions in Utah: >$1M + countless volunteer Magna and Bacchus Operations 665 employees www.northropgrumman.com

Key Programs at Bacchus Facility 100% of propulsion for submarine-launched missiles U.S. Navy’s Trident II (D5), currently in 30th year of production, accounts for 70% of nation’s nuclear deterrent Ground-Based Midcourse Defense Propulsion for missile interceptors and targets that validate missile defense Boosters to help launch satellites Support launches of U.S. Air Force national security satellites & commercial satellites International Space Station deliveries Propulsion for Antares launch vehicle used to launch supplies for NASA Launch Abort Motor to protect astronauts Our Launch Abort Motor will be used with NASA’s Orion spacecraft and Space Launch System, which will carry humans farther into the solar system than we have ever been

Summary Bacchus facility is important to our company, our community, and our country Development restrictions in the 0.3 psi overpressure zone were established 30 years ago to protect the public The same safety risks exist today Increased residential development will inhibit our ability to operate as we have for decades and as we plan to for decades to come With appropriate development restrictions, Magna can enjoy the positive economic impact of the Bacchus facility and keep residents safe