FIRST AMENDMENT TO LETTER OF CREDIT FACILITY AGREEMENT

Exhibit 10.4

                               FIRST AMENDMENT TO

                       LETTER OF CREDIT FACILITY AGREEMENT

     THIS FIRST AMENDMENT TO LETTER OF CREDIT FACILITY AGREEMENT is entered into

as of June 15, 2005, by and between OREGON STEEL MILLS, INC., a Delaware

corporation ("Applicant"), and U.S. BANK NATIONAL ASSOCIATION ("Issuer").

                                    RECITALS

     Applicant and Issuer are parties to that certain Letter of Credit Facility

Agreement dated as of March 29, 2005 (the "L/C Agreement") and desire to amend

the L/C Agreement in the manner set forth below.

     NOW, THEREFORE, in consideration of the mutual covenants and promises of

the parties contained herein, Issuer and Applicant hereby agree as follows:

      1.    Definitions. All capitalized terms used herein and not otherwise

defined herein shall have the meaning attributed to them in the L/C Agreement.

     2.    Amendment of Section 1.1. The definition of "Commitment Amount" in

Secti