JACKSON VALLEY QUARRY SUPPLEMENTAL APPLICATION INFORMATION

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1 JACKSON VALLEY QUARRY SUPPLEMENTAL APPLICATION INFORMATION APRIL 2013 Lead Agency Amador County Planning Department Operator George Reed Inc.

2 JACKSON VALLEY QUARRY SUPPLEMENTAL APPLICATION INFORMATION APRIL 2013 Lead Agency Amador County Planning Department 810 Court Street Jackson, California Operator George Reed Inc. PO Box 4760, Modesto, California Preparer Benchmark Resources 2515 East Bidwell, Folsom, California 95630

3 CONTENTS PART A: MINING OPERATIONS Narrative of Mining Operations Figure 1 Projected 5 Year Surface Disturbance Area PART B: INTERIM RECLAMATION USE Narrative Regarding Interim Use PART C: COUNTY 5 YEAR FINANCIAL ASSURANCE COST ESTIMATE 5-Year FACE Figure FACE Anticipated Disturbance Area PART D: VIEWS OF PROJECT FROM SURROUNDING AREAS Figure 3 Line of Sight from Jackson Valley Road Figure 4 Approximate Location of Noise and Visual Attenuation Berm Figure 5 Approximate Elevations of Residences Compared to Limits of Mining Figure 6 Approximate Elevations of Limits of Anticipated 5-Year Mining Disturbance and Distances and Sight Lines from Surrounding Residences i

4 PART A: MINING OPERATIONS

5 Narrative of Mining Operations The first need is to expand the mining operation into the eastern portion of the site to create a working floor or bench of approximately 200 in length and 100 in depth. This floor would allow for blasted rock to fall onto this working bench, rather than cascade down into the existing pit. Ideally, this floor would be at the same elevation as the current jaw or preliminary rock crusher. The elevation of the jaw is approximately 350 msl. Preliminary blasting and excavation for this new working floor or bench would begin at about elevation 425 msl, just below the current high point of the site. Blasting and excavation would progress slowly eastward and northwards. Working eastward expands the pit to allow its depth to increase while maintaining the slope of the vertical walls (40 ) and horizontal benches (27 ) as recommended by the geotechnical slope stability analysis. Working northwards ensures that there is less chance of rock fall onto the plant during expansion. At an excavation rate of about 300,000 tons per year, the new floor elevation of about 350 msl could be reached within 2 years. This represents a maximum excavation depth of 90 from the highest existing elevation. By that time, the mine would have expanded approximately feet into the new mining area (eastern parcel). Blasting and excavation would continue quite slowly to the east and north, so that at the end of five years, the mine may have expanded just another 1000 feet north and about 400 feet east. The existing rock plant and jaw will remain in place for as long as practicable. As mining progresses further east and deeper, the jaw will be relocated to a lower level of the mine, and the conveyor system will be adapted as necessary to most efficiently transport the preliminary crushed rock from the jaw to those crushers (considered part of the plant) which will continue to process rock to specific sizes. As the mine is expanded further east, it will allow benches to be constructed to allow the operation to quarry rock to deeper levels in the current pit, to the requested -75 msl elevation. As this depth is reached, and more of the surface of the site is disturbed, more of the surface water runoff will be channeled into and remain in the pit (similar to the runoff currently collected at the bottom of the pit during winter months), rather than being pumped to the primary and secondary ponds. This will ensure that all storm water runoff can be contained within the site and alleviate the potential need to increase the size of the primary and secondary retention ponds. The primary pond eventually may transition to a stockpile area for sale material and overburden. Ultimately, when it becomes necessary to mine in the area of the existing rock plant, a portable plant and jaw will be moved into the bottom area of the pit. However, the truck scale will remain in place for as long as possible, as will the dispatch office / scale house, since dispatchers must view and record the truck scale and trucks entering and exiting the scale area. The access road from Jackson Valley Road into the quarry will remain, although its slope into the quarry will change as the mine continues to deepen. Figure 1 depicts the 5-year surface disturbance area expected based upon the excavation rate indicated above. The expected surface area of disturbance is just nine acres. The cross-section of this figure indicates the new benches formed and the extent of the depth of the mine and expansion area. Jackson Valley Quarry Expansion: Supplemental Application Information Page 1 Part A: Mining Operations

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7 PART B: INTERIM RECLAMATION USE

8 Narrative Regarding Interim Use of Jackson Valley Quarry and Expansion Area 2 5 years after issuance of the use permit ( ) This interim use assumes: an excavation rate of 300,000 tons per year a steady seam of quality, usable rock trending in an easterly/ northeasterly direction continued application of current mining practices, i.e. blasting to specified depths to develop a benches and a new vertical face, mining deeper, then expanding outward again Mining Progress At five years, it s estimated that the mining will have expanded into the eastern half of the site about 400 feet. The new mined area will be about 1000 feet long and may consist of up to four new benches, representing a mined depth of about 160 feet. In sum, the progress into the expansion area will be relatively minimal, representing less than 10 surface acres of the 86+-acre site. Interim Use Summary: Utilize remaining 75 acres of the undisturbed eastern portion of the site for livestockgrazing Idle the working mine until a new mine operator purchases the property and assumes mining operations Much of the eastern portion of the site will be left undisturbed. This would allow the eastern portion to be returned to livestock grazing, as it is currently used. The open pit could be fenced to prevent livestock from wandering onto the mine benches. Any compacted access roads to the expansion area that are within the eastern expansion area could be ripped and reseeded with the seeding mixture indicated in the Reclamation Plan. Any oak trees planted in this eastern portion as part of mitigation for removed trees would need to be monitored, if required by the MMRP. The Lead Agency would need to make note of trees which do not survive to ensure that the new trees are planted when the mine is reactivated. After just five additional years of mining, considerable resources still would be remaining. Because the site is improved for mining with permanent equipment in place, and it has an active permit, the site would be most viable as a continuing mine operation. More than likely, the mine and its equipment would be purchased by another mine operator. Leaving the site in a state ready for re-activation would be the best interim use at this stage. The Lead Agency could file an Interim Management Plan while waiting for the mine to be purchased, which would facilitate the site s sale. The active portion of the mine would need to be secured from trespass. The current access gate can be locked and the area is fenced to prevent unauthorized access. All benches and vertical walls already are stable by design; walls and benches are inspected by MSHA twice per year. No additional stabilization would be needed. Similarly, because the storm water retention and erosion control measures already are in place, the Lead Agency need only monitor the measures as called-for in the site SWPPP and Reclamation Plan. Any on-site fuel tanks would need to be drained and any stored hazardous materials should be removed from the site and properly disposed of. In short, the mine would be treated, maintained and monitored as though it were an idle mine. Jackson Valley Quarry Expansion: Supplemental Application Information Part B: Interim Reclamation Use Page 1

9 Financial Assurance Cost Estimate (FACE), The FACE prepared for the Reclamation Plan of the Jackson Valley Quarry Expansion is calculated upon the maximum disturbed area at the end of 5 years of mining, or approximately the end of This FACE assumes that the above-described interim use would be adopted if the mine operator were to abandon the site within 1 5 years and the Lead Agency were to adopt these suggested actions of the interim use. Nonetheless, the FACE does provide an estimate of plant removal and other tasks as if the mine were to be closed, in addition to costs for transitioning the mine to the above-described interim use. SMARA Section (a) (3) states that the amount of financial assurances required for any one year shall be adjusted annually to account for new lands disturbed by surface mining operations, inflation, and reclamation of lands accomplished in accordance with the approved reclamation pond. Submitting to the Lead Agency and OMR, a FACE which assumes reclamation of disturbed areas five years in advance should not conflict with Section (a) (3), since the FACE for the interim use automatically includes the succeeding year, anticipates total reclamation of disturbed areas for the succeeding year, in addition to reclamation of disturbed areas 4 years after that, and costs for implementing an interim use. The mine operator actually would be over-bonding for the actual amount of reclamation needed for succeeding years one through four (e.g. years ), as calculated under (a) (3). Figure 2, included with the FACE in Part C, indicates the extent of surface disturbance expected after five years. The figure also specifies the areas and associated tasks which will require utilization of the financial assurance in order to close, or idle the mine within this five year period. Jackson Valley Quarry Expansion: Supplemental Application Information Part B: Interim Reclamation Use Page 2

10 PART C: COUNTY 5 YEAR FINANCIAL ASSURANCE COST ESTIMATE

11 California Surface Mining and Reclamation Act Operator Submittal Financial Assurance Cost Estimate Jackson Valley Quarry and Proposed Mine Expansion CA Mine ID No: Operator: George Reed, Inc Jackson Valley Road Ione, CA Lead Agency: Amador County Planning Department 810 Court Street Jackson, CA /18/2013

12 Introduction This Financial Assurance Estimate (FAE) is submitted to Amador County as the SMARA Lead Agency in accordance with SMARA for purposes of providing assurance for completion of reclamation for quarry owned and operated by George Reed, Inc., in accordance with the approved Reclamation Plan. The format and calculations provided follow the State Mining and Geology Board's Financial Assurance Guidelines (05/12/04). Equipment rates used in the Financial Assurance Estimate utilize Caltrans "Labor Surcharge Equipment Rental Rates." Labor Rates are reflective of Prevailing Wage Determinations made by the California Department of Industrial Relations. Current Status The Operator continues to mine the existing and new quarry faces, which consist of benches throughout most of the quarry. Processing operations for stockpiles and staging areas occupy much of the pit floor. Most reclamation tasks will not be undertaken until the conclusion of mining. Topsoil is stockpiled onsite for use in final reclamation. Reclamation Goal and Surface Treatment The Jackson Valley Quarry site Reclamation Plan provides for a reclaimed site land use of Open Space with a basin suitable for water storage at mining end-use. FAE Scope This FAE is calculated for reclamation of surface disturbances expected from The FAE is calculated based upon the maximum disturbance expected at the end of 2018.

13 Mine Name: Jackson Valley Quarry Reclamation Years: [Proposed Mine Expansion] Mine ID #: Reclamation Objective (near-term): Open-Space Grazing Reclamation Objective (end-use): Basin Suitable for Water Storage Note: Equipment rates used in this Financial Assurance Estimate utilize Caltrans "Labor Surcharge Equipment Rental Rates." Labor Rates are reflective of Prevailing Wage Determinations made by the California Department of Industrial Relations 1.0 PRIMARY RECLAMATION ACTIVITIES Fig.1: Disturbed area after 5 yrs mining in expansion area equals 53 acres The area disturbed at the end of 5 years of mining would be approx. 53 acres original mine area 44 acres expansion area 9 acres At this point, the Reclamation Plan would not consider reclaiming the sediment / retention ponds necessary; if they remain they may serve a useful purpose (perhaps as stock ponds, wildlife habitat or for future mining operations) Reclamation would not prohibit future quarrying of the significant remaining reserves. Task 1.1 Clean Quarry Benches (active mining areas) to minimize hazards Methods: Crest and face bench cleaning with excavator where needed to remove rock fall hazards. 27' wide horizontal benches in active quarry area are cleaned to rough grade with D-10 dozer. Vertical walls (40') of quarry area are left intact at a 1.2 (H):1 (V) slope, as mined. Slope stability analysis indicates appropriate factor of safety reached with this slope. No action or remediation needed. Combined length of benches approx 7000' = approx. 4.3 ac of horizontal benches Miscellaneous Information: Caterpillar D-10 Dozer with a 16' blade (2' overlap); Avg push distance Avg production rate: Avg. Speed: 2.5 mph; 50 ft 3100 cu yds/hr 300 ft 800 cub yds / hr A. Equipment List Equipment Quantity $ Hour # of Hours Caterpillar D-10 Dozer (TRACC 5220) 1 $ $15,120 Water Truck, 4000 gal (T&TT 36-48) 1 $48 40 $1,920 Caterpillar 345BL Hydraulic Excavator (HCECL 0355) 1 $ $7,720 Total Equipment Cost for this Task: $24,760 B. Labor List Labor Category Quantity $ Hour # of Hours Equipment Operator 2 $62 80 $9,920 Truck Driver 1 $50 40 $2,000 Total Labor Cost for this Task: $11,920 C. Materials List (Avg. Quoted Cost Per) Item Quantity # of Hours N/A N/A Total Material Cost for this Task: D. Direct Cost for this Task Equipment Cost + Labor Cost + Materials Cost: $36,680 Jackson Valley Quarry [Proposed Mine Expansion] CA Mine ID No.: Page 3 of 8 Reclamation Year 2013

14 Task 1.2 General Grading and Topsoil (Quarry Surfaces, Roads, and Processing Areas) Methods: Fig 2: General Grading / Topsoil Areas approx 29.6 acres The plant area of 19 acres could be reclaimed for agricultural use (livestock grazing). Although the pit area would not be suitable for livestock grazing, it could be revegetated. Areas which will be spread with topsoil and revegetated will be ripped, where possible. These areas are: plant area (19 ac) & area at northeast of site (2.0 acres) haul / access roads around circumference of expanded pit area (1.3 ac) = 22.3 acres Stockpiled topsoil will be spread evenly across the unripped hard rock quarry floor (3.0 ac) and benches (4.3 ac). = 7.3 acres Miscellaneous Information: 29.3 acres x 1 ft avg depth = approx. 47,300 cu. yds. Caterpillar D-10 Dozer with a 16' blade (2' overlap); Avg push distance Avg production rate: Avg. Speed: 2.5 mph; 50 ft 3100 cu yds/hr 300 ft 800 cu yds / hr Operator: Avg. Material varies; Efficiency: 50 min. hr 623 Scraper: Max capacity of 23 cubic yds; Avg. Speed: 10mph A. Equipment List Equipment Quantity $ Hour # of Hours Caterpillar D-10 Dozer (TRACC 5220) 1 $ $9,072 Water Truck, 4000 gal (T&TT 36-48) 1 $48 80 $3,840 Caterpillar 623E Scraper (SCRSP 1702) 1 $ $31,200 Total Equipment Cost for this Task: $44,112 B. Labor List ` Labor Category Quantity $ Hour # of Hours Equipment Operator 2 $ $22,816 Truck Driver 1 $50 80 $4,000 Total Labor Cost for this Task: $26,816 C. Materials List Item Quantity $ / unit N/A 0 Total Material Cost for this Task: D. Direct Cost for this Task Equipment Cost + Labor Cost + Materials Cost: $70,928 Jackson Valley Quarry [Proposed Mine Expansion] CA Mine ID No.: Page 4 of 8 Reclamation Year 2013

15 2.0 REVEGETATION Reclamation Objective ( ): Reclamation Objective (End Use): Open Space, Grazing Basin Suitable for Water Storage Task 2.1 Revegetate slopes and processing / stockpile areas Methods: After 5 years of mining, the site will be reclaimed to an agricultural end use, primarily for dry land grazing, except in the pit area. Revegetation would not prohibit future quarrying of the significant remaining reserve. Areas to be revegetated (hydroseeded for erosion control), include: 7.3 acres Horizontal benches (4.3 ac), 4.3 Pit floor (3.0 ac) 3.0 Areas to be revegetated for grazing / grass mix include: 26.2 acres Plant processing area (19 ac), northeast corner (1.7 ac) 20.7 acres Disturbed areas peripheral to the mine (topsoil stockpile areas, etc.) 5.5 acres Miscellaneous Information: TOTAL: 33.5 acres Assume approximately 24 acres of peripheral revegetation A. Equipment List Equipment Quantity $/Acre # of Acres Erosion control: Hydroseeding 1 $1, $13,870 Hydroseeding (Year 2 Follow Up) 1 $1, $7,030 Revegetation (grazing grasses): Hydroseeding 1 $1, $49,780 Hydroseeding (Year 2 Follow Up) 1 $1, $24,890 B. Labor List Total Equipment Cost for this Task: $95,570 Labor Category Quantity $ Hour # of Hours Total Labor Cost for this Task: D. Direct Cost for this Task Equipment Cost + Labor Cost + Materials Cost: $95,570 Jackson Valley Quarry [Proposed Mine Expansion] CA Mine ID No.: Page 5 of 8 Reclamation Year 2013

16 3.0 PLANT STRUCTURES AND EQUIPMENT REMOVAL Task 3.1 Remove scale, scale house and all concrete footings Methods: The cost of dismantling saleable equipment, demolishing footings, removing demolished concrete and scrap metal from site, and any other minor site cleanup is estimated. The cost of removing septic system, capping the well and removing overhead power to the site to prevent nuisance and reduce liability. NOTE: If the mine were to be abandoned between the years of , considerable resources would remain. The Lead agency may determine that the plant could remain on-site to facilitate reactivation of the mine by another operator. Miscellaneous Information: All equipment is well maintained, in working condition, and is considered company assets. Possible structures needing removal are predominantly foundations and steel support structures. (NOTE: This cost would remain unchanged from current reclamation plan.) A. Equipment List Equipment Quantity $ Hour # of Hours Caterpillar 980G Front end loader (LDRRT 2382) 1 $ $11,460 Cat 436 loader w/ backhoe (LDRRT 1866) 1 $44 60 $2,640 P&H Omega 40 Crane, 670 TC (S&CTK 7790) 1 $ $7,140 Water Truck, 4000 gal (T&TT 36-48) 1 $48 60 $2,880 Cat 345 Hyd exc w/ hyd hammer (HCECL 0355) 1 $ $11,580 B. Labor List Total Equipment Cost for this Task: $35,700 Labor Category Quantity $ Hour # of Hours Equipment Operator 4 $ $59,520 Truck Driver 1 $50 60 $3,000 Laborer 3 $46 60 $8,280 Structural Steel Worker 3 $63 40 $7,560 Electrician 1 $57 56 $3,192 Total Labor Cost for this Task: $81,552 C. Disposal Miscellaneous Information: Disposal costs are per dumpster including hauling and tipping fees. Concrete (10 yd³ dumpster) Misc. Material (30 yd³ dumpster) The volume of concrete from structural footings is approximately 375 cubic yards. An additional 10% has been added. Sorted scrap metal will be collected and hauled by scrapper (NOTE: This cost would remain unchanged from current reclamation plan.) Volume Unit Cost Disposal Structure / Equipment Type of Material Cu. Yds. $/yd³ The following only would be needed after mining is complete at end use (25+ years) OR if the Lead Agency prefers to remove the plant as an attractive nuisance during the interim use: Foundation / Footings / Scrap Concrete / Scrap 413 $32 $13,216 General Site Cleanup Misc. 100 $27 $2,700 Remove Septic System* N/A 0 $2,500 Cap Well* N/A 1 $1,500 $1,500 Remove overhead power lines* N/A 1 $1,200 $1,200 * Only needed after mining is complete at end use Total Disposal Cost for this Task: $18,616 D. Direct Cost for this Task Equipment Cost + Labor Cost + Disposal Cost: $135,868 E. Surplus / Salvage Value Total Cost from part D $135,868 Net Salvage Value of Structures Estimated at more than Surplus / Salvage Value Balance: $135,868 Jackson Valley Quarry [Proposed Mine Expansion] CA Mine ID No.: Page 6 of 8 Reclamation Year 2013

17 4.0 MISCELLANEOUS COSTS Task 4.1 Grade Control Survey This cost is not applicable to this mine site. Methods: N/A Miscellaneous Information: N/A A. Not Applicable Quantity $ Day # of Days B. Direct Cost for this Task Total Equipment Cost for this Task: Equipment Cost + Labor Cost + Disposal Cost: Task 4.2 Maintain drainage facilities until site is adequately revegetated to control erosion. Methods: Restore runoff control features as needed. "V" ditches for hydrology control. General grading and erosion control. Site is primarily internally drained Miscellaneous Information: N/A There are no sediment ponds on the site that require maintenance Storm water pond will revert to upland/wetland habitat or stock pond A. Equipment List Equipment Quantity $ Hour # of Hours Caterpillar D-10 Dozer (TRACC 5220) 1 $ $4,536 Power Mulcher (BRUCP 00-09) 1 $28 10 $280 B. Labor List Total Equipment Cost for this Task: $4,816 Labor Category Quantity $ Hour # of Hours Operating Engineer 1 $62 12 $744 Laborer 1 $46 16 $736 Laborer (installation of livestock fence)* 2 $46 16 $1,472 * for interim use to protect livestock from the open pit Total Labor Cost for this Task: $2,952 C. Materials List Item Quantity $ / unit Straw (per Acre) 12 $100 $1,200 Silt Fencing (per linear ft) 1500 $3 $4,500 Livestock (barbed wire) Fencing (per linear foot)* 1200 $15 $18,000 * for interim use to protect livestock from the open pit Total Material Cost for this Task: $23,700 D. Direct Cost for this Task Equipment Cost + Labor Cost + Materials Cost: $31,468 Jackson Valley Quarry [Proposed Mine Expansion] CA Mine ID No.: Page 7 of 8 Reclamation Year 2013

18 5.0 MONITORING # Visits / # of Monitoring Monitoring Task $ / Visit Year Years Monitoring (per EIR MMRP)* $ $1,600 Closure Report $ $1,600 The following only would be needed after mining is complete at end use (25+ years): Pit Water Testing Field Visit / Sample Collection $1, TDS and Chemical Lab Testing $ Remediation, if any $2, * For interim use; mitigation monitoring, if required Total Equipment Cost for this Task: $1,600 B. Direct Cost for this Task Equipment Cost + Labor Cost + Disposal Cost: $1, SUMMARY OF COST Direct Costs: Total of all Primary Reclamation Activities Costs $107,608 Total of all Revegetation Costs $95,570 Total of all Plant Structures and Equipment $135,868 Total of all Miscellaneous Costs $31,468 Total of all Monitoring Costs $1,600 Total of Direct Costs $372,114 (%) of direct cost Supervision (5.5%) $20,466 Profit / Overhead (11.5%) $42,793 Contingencies (10%) $37,211 Mobilization* $3,233 Total of Indirect Costs $103,703 Total of Direct and Indirect Costs $475,817 Lead Agency Administrative Cost (Calculated at 15% of Direct plus Indirect Costs) $71,373 Total Estimated Cost of Reclamation $547,190 *Estimated at 4x equipment rental rates Jackson Valley Quarry [Proposed Mine Expansion] CA Mine ID No.: Page 8 of 8 Reclamation Year 2013

19 GEORGE REED, INC. RECLAMATION MAP N LEGEND = 53 Acres = 19 Acres = 1.7 Acres = 3 Acres = 4.3 Acres of Horizontal Benches = ~5.5 Acres Topsoil Stockpiles =~1.5 Acres Overburden Berm = Disturbed Area ( 53 Ac) = General Grading & Topsoil Areas (29.6 Ac) =Revegetate Slope & Processing / Stockpile Areas (31.8 Ac) 1300'

20 PART D: VIEWS OF PROJECT FROM SURROUNDING AREAS

21 SM

22 Figure 4: Approximate Location of Noise and Visual Attenuation Berm Jackson Valley Quarry Expansion: Supplemental Application Information Aerial and Elevation Source: Google Earth, Image dated 2011 (NOT TO SCALE)

23 Figure 5: Approximate Elevations of Residences Compared to Limits of Mining Jackson Valley Quarry Expansion: Supplemental Application Information Aerial and Elevation Source: Google Earth, Image date 2011 (NOT TO SCALE)

24 Figure 6: Approximate Elevations of Limits of Anticipated 5 Year Mining Disturbance Distances and Sight Lines from Surrounding Residences Jackson Valley Quarry Expansion: Supplemental Application Information Aerial, Distance and Elevation Source: Google Earth, Image dated 2011 (NOT TO SCALE)

25 2515 East Bidwell Street Folsom, California P: F: