The following is a copy of the letter sent to Gibraltar Rock on May 11, 2004 by Keith Laslow of the Pennsylvania Department of Environmental Protection (DEP).

Pennsylvania Department of Environmental Protection

5 West Laurel Boulevard

Pottsville, PA 17901-2454

May 11,2004

570-621-3118

FAX #570-621-3110

CERTIFIED MAIL NO. 7099 3400 0013 3723 8524

Uday Patankar, Vice President of Environmental & Public Affairs

Gibraltar Rock, Inc.

355 Newbold Road

Fairless Hills, PA 19030

Re: Pre-Denial - Gibraltar Rock Quarry Operation Application No. 46030301

New Hanover Township, Montgomery County

Dear Mr. Patankar:

The Department has reviewed your application and subsequent submissions and has determined that significant deficiencies still remain. If the following items that are outlined in the technical deficiencies letter of November 14, 2003 (copy enclosed) are not completely addressed, the Department will deny your application:

1. Item No.2.

2. Item No.4:

A few industrial buildings and a power line, which are located within the proposed permit area and within 1000’ (305 m) perimeter zone, are not included in your application.

3. Item No.6:

The unnamed tributary to the Swamp Creek that crosses the eastern side of the property has been classified by the PA Fish & Boat Commission as perennial. Please be advised that only an ephemeral stream (not intermittent nor perennial) areas might be authorized for mineral extraction without prior variance. Both perennial and intermittent streams are protected and require a variance. No mineral extraction within the stream and within its buffer zone shall be proposed without requesting a variance and receiving prior approval from both the PA Fish & Boat Commission and the PA Game Commission; as the Department will not grant such authorization. Please identify the above referenced stream as perennial and revise your application accordingly (show the stream on maps, cross-sections, and revise accordingly maps and cross-sections so this area will not be proposed for any future mining, etc.).

4. Items No.7,8, & 9:

Please submit notarized waivers and/or submit information to the Department to attempt to demonstrate that special circumstances warrant support areas within the distance limitations. The information shall demonstrate that the public health and safety will not be endangered, that the environment and the interests of the public and the landowners affected thereby will be adequately protected and that there are no feasible or prudent alternatives to conducting those aspects or the activity within the distance limitation.

5. Item No.10:

Include in your application a power line that intersects the eastern corner of the proposed northern pit area (runs above the MW-4N).

6. Item No. 12:

Identify all wells located within 1000’ (305 m) of the proposed permit area and within anticipated maximum zone of quarry’s dewatering influence. In case of a lack of cooperation from property owners, please document your attempts to do the well inventory. Address in detail the possible effects from the proposed mining activities on all streams, ponds and wetlands located within hydrological influence from the proposed operation. Complete Module 8: Hydrology, sub modules 8.1 & 8.2. Provide background chemical analysis results (measure flow when applicable) for the following:

- Each stream (upstream and downstream) receiving discharge, runoff or drainage from the proposed operation.

- Wetlands and ponds located within 100’ (305 m) of the proposed permit area (if access is not granted by the landowner please document your attempt).

Include in your monitoring program, quantity and quality measurements of points that may show any effect of the proposed discharge on the receiving stream.

7. Item No. 16.

8. Item No. 17:

Provide the actual calculations on available amounts of overburden for reclamation and backfilling and excess amount. Address stockpiling required amounts of overburden for reclamation and backfilling prior to removing any from the site and prior to advancing upper lifts into the “backfill zone”. In reference to the benching that is to be extended and subject to backfilling in some areas there will be 100’ (30.48 m) high walls before the area is backfilled; please address this problem.

9.         Items No. 19 through No. 36 and general additional comments:

-           Roads have not been identified on all plans.

-           Address the conceptual plans for the conveyor construction (road/stream) crossing,

including E&S, in more detail.

-           More extensive controls/narrative/scheduling are needed for the massive fill areas

(operating/support below lower pit).

-           Provide traps for all overburden storage areas.

-           Provide a narrative for berm construction/expansion/extension, along with adequate

controls to handle runoff from all disturbed areas.

-           More detail and better narratives are needed for the phase-by-phase sequencing. Plans 9A

through 9D are very confusing and need to be clarified with step by step narrative. (The

narrative should also refer to, and highlight key elements, in figure 12.2A throughl2.2E.).

-           More detail is necessary in critical areas (i.e. berm construction, site access, stream

variance areas, culverts, initial pit, etc.). Blow-up views of these areas is strongly

suggested.

-           Provide specific plan/profile for the full length of the access road with clear sequencing

and E & S/drainage controls.

-           Show and specify matting in the channels to be grass lined.

 Will any of the process water from the asphalt plant or the concrete plant be directed to the pit or otherwise discharged? Make every effort to design the water-handling system for these facilities as a “closed system” (no discharge, recycled).

- Indicate that the dimensions given for the treatment basins and for all proposed traps are “bottom” dimensions to assure adequate capacity.

- The computer calculated rating tables for the culverts are still not clear. Perhaps a summary table with applicable results at the design flows would help.

a. Check culvert # 2; need complete calculations and must be clarified.

b. Check culvert-rating tables for # 3 and #4.

c. Why is “calculated” HW depth different than what is on the rating tables?

10. Items No.38.

11. Items No.40:

To address this item you must include all ponds, streams and wetlands that might be adversely affected by mining, i.e., located within influence zone of the proposed quarry’s dewatering.

12. Item No.42.

13. Item No.43:

The area proposed for mineral extraction cannot include nor anticipate future inclusion of the controversial stream [its 100’ (30.48 m) protection zone], which has been classified as perennial by the PA Fish and Boat Commission.

Please also be reminded, when proposing mineral extraction areas and areas to be bonded, you are responsible for complying with local ordinances adopted pursuant to the Municipalities Planning Code, and all zoning ordinances in existence before January 1, 1972.

In light of the above information, please submit a bonding application. Please remember to include detailed calculations for the 45 degrees reclamation slopes trade off with 25 degrees reclamation slopes.

Should you have any questions regarding the identified deficiencies, please contact me to schedule a meeting. The meeting must be scheduled within the 30-day period allotted for your reply, unless otherwise extended by the Department.

If you believe the stated deficiencies are not significant, you have the option of declining this request and asking the Department to make a decision based on the information you have already made available. Your letter should explain and justify how your current submission satisfies the deficiencies noted above.

Please keep in mind that if you ignore this request or fail to respond to all of the deficiencies listed above by July 11, 2004, your application will be denied.

Sincerely,

Keith A. Laslow, P.G.

Professional Geologist Manager

District Mining Operations