20100428_Transfer_67-68

April 28, 2010
Mr. W. Ronnie Humphrey
HCI, Inc.
2421 North Marine Boulevard
Jacksonville, North Carolina 28546
RE: Mining Permit No. 67-68
Halltown Road Mine
Onslow County
White Oak River Basin
Dear Mr. Humphrey:
Your request to have the above referenced mining permit, issued to W T Humphrey,
Inc., transferred in its entirety to your company has been approved. As we have received the
required surety in an amount sufficient to cover the present operation, I am enclosing the
transferred mining permit. The permit number, expiration date and mine name shall remain
the same as before the transfer.
Please review the permit carefully and notify this office of any objections or questions
you may have concerning the terms of the permit. It is your responsibility to fully understand
and comply with the conditions of your mining permit.
As a reminder, your permitted acreage at this site is 12.6 acres and the amount of land
you are approved to disturb is 10.64 acres.
Again, if you should have any questions on this matter please contact Ms. Judy
Wehner, Assistant State Mining Specialist, at [phone].
Sincerely,
Francis M. Nevils, Jr., PE
Section Chief
FMN/jw
Enclosures
cc: Mr. Dan Sams, PE
Ms. Shannon Deaton-WRC, w/enclosures
Mr. William Gerringer-DOL, Mine and Quarry Bureau, w/o enclosures

April 28, 2010
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
7008 1300 0000 1124 0247
Mr. Ronnie Humphrey
W. T. Humphrey, Inc.
2421 North Marine Boulevard
Jacksonville, North Carolina 28546
Re: Halltown Road Mine
Onslow County
White Oak River Basin
Dear Mr. Humphrey:
Your request to have Mining Permit No. 67-68 transferred in its entirety from your
company to HCI, Inc. has been approved. As we have received HCI, Inc's required surety in
an amount sufficient to cover the present operation, your company is hereby released from
further responsibility for this site with respect to The Mining Act of 1971 . Therefore, I am
returning your $7,700.00 Surety Bond No. 929450776 to you for your disposal.
Thank you for your cooperation in this matter.
Sincerely,
Francis M. Nevils, Jr., PE
Section Chief
FMN/jw
Enclosure
cc: Mr. Dan Sams, PE
Mr. William Gerringer-DOL, Mine and Quarry Bureau
File

DEPARTMENT OF ENVIRONMENT
AND NATURAL RESOURCES
DIVISION OF LAND RESOURCES
LAND QUALITY SECTION
PERMIT
for the operation of a mining activity
In accordance with the provisions of G.S. 74-46 through 68, "The Mining
Act of 1971 ," Mining Permit Rule 15A NCAC 5 B, and other applicable
laws, rules and regulations
Permission is hereby granted to:
HCI, Inc..
Halltown Road Mine
Onslow County - Permit No. 67-68
for the operation of a
Sand Mine
which shall provide that the usefulness, productivity and scenic values of
all lands and waters affected by this mining operation will receive the
greatest practical degree of protection and restoration.
MINING PERMIT EXPIRATION DATE: May 28, 2018

Page 2
In accordance with the application for this mining permit, which is hereby approved by the
Department of Environment and Natural Resources, hereinafter referred to as the Department,
and in conformity with the approved Reclamation Plan attached to and incorporated as part of
this permit, provisions must be made for the protection of the surrounding environment and for
reclamation of the land and water affected by the permitted mining operation. This permit is
expressly conditioned upon compliance with all the requirements of the approved Reclamation
Plan. However, completed performance of the approved Reclamation Plan is a separable
obligation, secured by the bond or other security on file with the Department, and may survive
the expiration, revocation or suspension of this permit.
This permit is not transferable by the permittee with the following exception: If another
operator succeeds to the interest of the permittee in the permitted mining operation, by virtue
of a sale, lease, assignment or otherwise, the Department may release the permittee from the
duties imposed upon him by the conditions of his permit and by the Mining Act with reference
to the permitted operation, and transfer the permit to the successor operator, provided that
both operators have complied with the requirements of the Mining Act and that the successor
operator agrees to assume the duties of the permittee with reference to reclamation of the
affected land and posts a suitable bond or other security.
In the event that the Department determines that the permittee or permittee's successor is not
complying with the Reclamation Plan or other terms and conditions of this permit, or is failing
to achieve the purposes and requirements of the Mining Act, the Department may give the
operator written notice of its intent to modify, revoke or suspend the permit, or its intent to
modify the Reclamation Plan as incorporated in the permit. The operator shall have right to a
hearing at a designated time and place on any proposed modification, revocation or
suspension by the Department. Alternatively and in addition to the above, the Department
may institute other enforcement procedures authorized by law.
Definitions
Wherever used or referred to in this permit, unless the context clearly indicates otherwise,
terms shall have the same meaning as supplied by the Mining Act, N.C.G.S. 74-49.
Modifications
April 28, 2010: This permit has been transferred in its entirety from W T Humphrey, Inc. to
HCI, Inc.
Expiration Date
This permit shall be effective from the date of its issuance until May 28, 2018.
Conditions
This permit shall be subject to the provisions of the Mining Act, N.C.G.S. 74-46, et. seq., and to
the following conditions and limitations:

Page 3
OPERATING CONDITIONS:
1 . A. Any wastewater processing or mine dewatering shall be in accordance with the
permitting requirements and rules promulgated by the N.C. Environmental
Management Commission.
B. Any stormwater runoff from the affected areas at the site shall be in accordance
with any applicable permit requirements and regulations promulgated by the
Environmental Protection Agency and enforced by the N.C. Environmental
Management Commission. It shall be the permittee's responsibility to contact the
Division of Water Quality to secure any necessary stormwater permits or other
approval documents.
2. A. Any mining process producing air contamination emissions shall be subject to the
permitting requirements and rules promulgated by the N.C. Environmental
Management Commission and enforced by the Division of Air Quality.
B. During mining operations, water trucks or other means that may be necessary
shall be utilized to prevent dust from leaving the permitted area.
3. A. Sufficient buffer (minimum 50 foot undisturbed) shall be maintained between any
affected land and any adjoining waterway or wetland to prevent sedimentation of
that waterway or wetland from erosion of the affected land and to preserve the
integrity of the natural watercourse or wetland.
B. Any mining activity affecting waters of the State, waters of the U. S., or wetlands
shall be in accordance with the requirements and regulations promulgated and
enforced by the N. C. Environmental Management Commission.
4. A. Adequate mechanical barriers including but not limited to diversions, earthen
dikes, check dams, sediment retarding structures, rip rap pits, or ditches shall be
provided in the initial stages of any land disturbance and maintained to prevent
sediment from discharging onto adjacent surface areas or into any lake, wetland
or natural watercourse in proximity to the affected land.
B. All drainage from the affected area around the mine excavation shall be diverted
internal to said excavation.
C. No dewatering activities shall occur at this site.
D. Mining activities shall occur as indicated on the mine map last revised February
12, 2010 and the supplemental information received by the Land Quality Section
on October 30, 2007, January 4, 2008, March 3, 2008, and April 11 , 2008, and
April 28, 2008.
E. Excavation depth of the mine shall be no greater than 30 feet from the existing
land surface.

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5. All affected area boundaries (10.64 acres) shall be permanently marked at the site on
100-foot intervals unless the line of sight allows for larger spacing intervals.
6. The angle for graded slopes and fills shall be no greater than the angle, which can be
retained by vegetative cover or other adequate erosion control measure, structure, or
device. In any event, exposed slopes or any excavated channels, the erosion of which
may cause off-site damage because of siltation, shall be planted or otherwise provided
with ground cover, devices or structures sufficient to restrain such erosion.
7. The affected land shall be graded so as to prevent collection of pools of water that are,
or likely to become, noxious or foul. Necessary structures such as drainage ditches or
conduits shall be constructed or installed when required to prevent such conditions.
8. Existing vegetation or vegetated earthen berms shall be maintained between the mine
and public thoroughfares whenever practical to screen the operation from the public.
9. A. Sufficient buffer shall be maintained between any excavation and any mining
permit boundary to protect adjacent property.
B. Buffers shall be maintained as indicated on the mine map last revised February
27, 2008.
10. A. No on-site disposal of refuse or other solid waste that is generated outside of the
mining permit area shall be allowed within the boundaries of the mining permit
area unless authorization to conduct said disposal has first been obtained from
both the Division of Waste Management and the Land Quality Section,
Department of Environment and Natural Resources. The method of disposal
shall be consistent with the approved reclamation plan.
B. Mining refuse as defined by G.S. 74-49 (14) of The Mining Act of 1971 generated
on-site and directly associated with the mining activity may be disposed of in a
designated refuse area. All other waste products must be disposed of in a
disposal facility approved by the Division of Waste Management. No petroleum
products, acids, solvents or their storage containers or any other material that
may be considered hazardous shall be disposed of within the permitted area.
C. For the purposes of this permit, the Division of Land Resources considers the
following materials to be "mining refuse" (in addition to those specifically listed
under G.S. 74-49 (14) of the N.C. Mining Act of 1971):
1 . on-site generated land clearing debris
2. conveyor belts
3. wire cables
4. v-belts
5. steel reinforced air hoses
6. drill steel

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D. If mining refuse is to be permanently disposed within the mining permit boundary,
the following information must be provided to and approved by the Division of
Land Resources prior to commencement of such disposal:
1 . the approximate boundaries and size of the refuse disposal area;
2. a list of refuse items to be disposed;
3. verification that a minimum of 4 feet of cover will be provided over the
refuse;
4. verification that the refuse will be disposed at least 4 feet above the
seasonally high water table; and,
5. verification that a permanent vegetative groundcover will be established.
11 . An Annual Reclamation Report shall be submitted on a form supplied by the
Department by February 1 of each year until reclamation is completed and approved.
12. The operator shall notify the Department in writing of the desire to delete, modify or
otherwise change any part of the mining, reclamation, or erosion/sediment control plan
contained in the approved application for a mining permit or any approved revision to it.
Approval to implement such changes must be obtained from the Department prior to on-
site implementation of the revisions.
13. The security, which was posted pursuant to N.C.G.S. 74-54 in the form of a $7,700.00
Surety Bond, is sufficient to cover the operation as indicated in the approved
application. This security must remain in force for this permit to be valid. The total
affected land shall not exceed the bonded acreage.
14. A. Authorized representatives of the Division of Archives and History shall be
granted access to the site to determine the presence of significant archaeological
resources.
B. Pursuant to N. C. G. S. 70 Article 3, "The Unmarked Human Burial and Human
Skeletal Remains Protection Act," should the operator or any person in his
employ encounter human skeletal remains, immediate notification shall be
provided to the county medical examiner and the chief archaeologist, North
Carolina Division of Archives and History.

Page 6
APPROVED RECLAMATION PLAN
The Mining Permit incorporates this Reclamation Plan, the performance of which is a condition
on the continuing validity of that Mining Permit. Additionally, the Reclamation Plan is a
separable obligation of the permittee, which continues beyond the terms of the Mining Permit.
The approved plan provides:
Minimum Standards As Provided By G.S. 74-53
1 . The final slopes in all excavations in soil, sand, gravel and other unconsolidated
materials shall be at such an angle as to minimize the possibility of slides and be
consistent with the future use of the land.
2. Provisions for safety to persons and to adjoining property must be provided in all
excavations in rock.
3. All overburden and spoil shall be left in a configuration which is in accordance with
accepted conservation practices and which is suitable for the proposed subsequent use
of the land.
4. No small pools of water shall be allowed to collect or remain on the mined area that are,
or are likely to become noxious, odious or foul.
5. The revegetation plan shall conform to accepted and recommended agronomic and
reforestation practices as established by the North Carolina Agricultural Experiment
Station and the North Carolina Forest Service.
6. Permittee shall conduct reclamation activities pursuant to the Reclamation Plan herein
incorporated. These activities shall be conducted according to the time schedule
included in the plan, which shall to the extent feasible provide reclamation simultaneous
with mining operations and in any event, provide reclamation at the earliest practicable
time after completion or termination of mining on any segment of the permit area and
shall be completed within two years after completion or termination of mining.
RECLAMATION CONDITIONS:
1 . Provided further, and subject to the Reclamation schedule, the planned reclamation
shall be to restore the mine excavation to a lake area and to grade and revegetate the
adjacent disturbed areas.
2. The specifications for surface gradient restoration to a surface suitable for the planned
future use are as follows:
A. The lake area shall be excavated to maintain a minimum water depth of four feet
measured from the low water table elevation.

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B. The side slopes to the lake excavation shall be graded to a 3 horizontal to 1
vertical or flatter to the water line and 2 horizontal to 1 vertical or flatter below the
water line.
C. Any areas used for wastepiles, screening, stockpiling or other processing shall
be leveled and smoothed.
D. No contaminants shall be permanently disposed of at the mine site. On-site
disposal of waste shall be in accordance with Operating Condition Nos. 10A
through 10D.
E. The affected land shall be graded to prevent the collection of noxious or foul
water.
3. Revegetation Plan:
After site preparation, all disturbed land areas shall be revegetated as per the following:
Permanent Seeding Specifications
Dates Species Rate, Lbs/Acre
February 15- April 1 Kobe Lespedeza 10
Bahiagrass 50
Redtop 1
Winter rye (grain) 15
April 1- July 31 Common Bermuda 50
August 1- October Lespedeza (unscarified) 30
German millet 40
October 25- February 15 Rye (grain- temporary) 120
Soil Amendments
Lime - 2000 Ibs/acre or follow recommendations from a soil test.
Fertilizer - 1000 Ibs/acre 8-8-8 or 10-10-10, or follow recommendations from a soil test.
Mulch - All seeded areas shall be mulched using small grain straw at a rate of 2000
Ibs/acre and anchored appropriately.
Whenever possible, disturbed areas should be vegetated with native warm season
grasses such as switch grass, Indian grass, bluestem and gamma grass.

Page 8
In addition, the permittee shall consult with a professional wildlife biologist with the N.C.
Wildlife Resources Commission to enhance post-project wildlife habitat at the site.
4. Reclamation Plan:
Reclamation shall be conducted simultaneously with mining to the extent feasible. In
any event, reclamation shall be initiated as soon as feasible after completion or
termination of mining of any mine segment under permit. Final reclamation, including
revegetation, shall be completed within two years of completion or termination of
mining.
This permit, issued to W T Humphrey, Inc. May 27, 2008, is hereby transferred in its
entirety to HCI, Inc. this 28th day of April, 2010 pursuant to GS 74-51 .
By:
James D. Simons, Director
Division of Land Resources
By Authority of the Secretary
Of the Department of Environment and Natural Resources