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There is nothing inherent about using SR noise reduction with cyan tracks. The general technical reason is that the cyan track, with a red reader, if everything is optimized will be 2dB noisier than a high-magenta track using the same red reader. And all of this is on top of the increased noise/distortion from using the red reader and non-conventional track.

Since the optical soundtrack isn't really a quiet track to begin with, each step down in noise quality is more noticable. Using SR noise reduction makes it less objectionable. The cyan track is still going to be noisier than the redeveloped tracks with or without SR noise reduction.

Steve

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Ideally, prints are properly recycled, so the silver is recovered. But many prints end up in landfills or are incinerated without recovering the silver. Silver is a heavy metal, and release of silver salts to the environment is regulated. Also, soundtrack application and wash-off uses significant amounts of fresh water, which is becoming a precious commodity.

Cost savings come mostly from the elimination of waste caused by improper soundtrack developer application. Anyone who has visited a motion picture lab and watched the viscous soundtrack developer being applied to the track area and washed off with jets of water on processing machines running hundreds of feet per minute usually comes away amazed it works at all!