20240705_Application

NORTH CAROLINA MINING State of North Carolina 1612 Mail Service Center
PERMIT APPLICATION Department of Environmental Quality Raleigh,NC 27699-1612
Division of Energy,Mineral,and Land Resources [phone]
NOTE:It is recommended that you contact the appropriate Regional Office or the Raleigh Central Office for a PRE-
APPLICATION MEETING to discuss your intentions and address any questions.
1. Name of Mine Hamlet Plant
County Richmond River Basin Yadkin
Latitude(decimal degrees to four
places) 34.851910
Longitude(decimal degrees to four
places) -79.658072
2. Name of Applicant FSC II, LLC
Applicant Contact Andrew Norton Consultant Contact
Applicant Email ANo [e-mail] Consultant Email
Telephone [phone] Telephone
Cell Phone [phone] Cell Phone
3 Permanent Address for Receipt of
Official Mail`• 701 Corporate Center Drive, Suite 195, Raleigh, NC 27607
4. Mine Office Address 701 Corporate Center Drive, Suite 195, Raleigh, NC 27607
5. Mine Manager Matt Baugnon
Mine Manager Email [e-mail]
Telephone [phone] Cell Phone [phone]
1 certify that all details contained in this permit application are true and correct to the best of our knowledge.We
fully understand that any willful misrepresentation of facts will be cause for permit revocation.
Signature"' ,� ���� Date -7a/a0.2y
Print Name An6rew J. Norton
Title Vice President and Assistant Secretary
'This will be the name that the mining permit will be issued to and the name that must be indicated on the reclamation bond(security)that
corresponds to this site.
'The Division of Energy,Mineral,and Land Resources must be notfed of any changes in the permanent address or telephone number.
"Signature of company officer required.
G.S.74-51 provides that the Department shall grant or deny an application for a permit within 60 days of receipt of a complete
application or,if a public hearing is held,within 30 days following the hearing and the filing of any supplemental information
required by the Department.All questions must be addressed,and all required maps provided before this application can
be considered complete.Attach additional sheets as needed.
Revised September 21, 2021 P a a e i

NORTH CAROLINA MINING State of North Carolina 1612 Mail Service Center
PERMIT APPLICATION Department of Environmental Quality Raleigh,NC 27699-1612
Division of Energy,Mineral,and Land Resources [phone]
NOTE:All the following questions must be thoroughly answered regarding your mining operation for the intended
life of the mine.All responses must be clearly conveyed on a corresponding,detailed mine map.
A.GENERAL CHARACTERISTICS OF THE MINE
1. Answer all the following that apply:
F-1 This is an application for a NEW permit.
Indicate the total acreage at the site to be covered by the permit
(This is the acreage the new permit fee will be based upon.)
Of this acreage,how much is owned and how much is leased?
Acres owned: Acres leased:
Property owner if leased:
F] This is an application for a MODIFICATION to a mining permit.
Mining Permit Number: Total permitted acreage:
Does the modification involve acreage within the previously approved permitted boundary?
FIYES FINO
If yes,indicate the acreage to be covered by this modification
Does the modification involve acreage outside the previously approved permitted boundary?
FIYES F ]NO
If yes,indicate the additional acreage to be covered by this modification
NOTE:You must complete all of Section F of this application form entitled Notification of Adjoining
Landowners
Of the acreage to be added to the permit,will any portion be affected(i.e.:disturbed,ground cover
removed)by the mining operation?
YES RNO
If yes,indicate the acreage to be affected within the acreage to be added to the permit
The modification fee is based upon the proposed new affected acreage within the previously
approved permitted boundary plus the proposed total acreage to be added outside the previously
approved permitted boundary.
FX-] This is an application for TRANSFER of a mining permit.
Mining Permit Number. 77-15 Total permitted acreage: 115.82
Revised September 21, 2021 P a a e ( 2

NORTH CAROLINA MINING State of North Carolina 1612 Mail Service Center
PERMIT APPLICATION Department of Environmental Quality Raleigh,NC 27699-1612
Division of Energy,Mineral,and Land Resources [phone]
MINING FEE SCHEDULE
A nonrefundable permit application processing fee when filing for a new mining permit,permit modification,or transferred permit is
required as follows:
APPLICATION TYPE 0—25 ACRES 26+ACRES
New Permit Applications $3,750.00 $5,000.00
Permit Modifications $750.00 $1,000.00
Permit Transfers $100.00 $100.00
Annual Operating Fee $400.00 $400.00
Acres for new permits means the total acreage at the site to be covered by the permit.Acres for modification of permits means the
new affected acres within the previously approved permitted boundary plus the proposed total acreage to be added outside the
previously approved permitted boundary.
2. Name of all materials mined: Sand and Gravel
3. Mining Method:
Hydraulic Dredge 0 Front-end Loader&Truck Shovel&Truck
Dragline&Truck 0 Self-loading Scraper Excavator&Truck
Other(please explain):
4. Expected maximum depth of mine(feet)40
Depth is relative to what benchmark?(e.g.,natural ground level,mean seal level,road elevation,etc.):
Natural Ground Level
Expected average depth of mine(feet) 20
5. Has an area at this site been mined in the past?
YES X NOF—]
If yes,when and by whom was this activity conducted?Since 1991 by Hudson Paving, Inc.
6. Estimated life of the operation(years):20
NOTE:The Department may request clarification on how life of mine was calculated.
Revised September 21, 2021 P a a e 3

NORTH CAROLINA MINING State of North Carolina 1612 Mail Service Center
PERMIT APPLICATION Department of Environmental Quality Raleigh,NC 27699-1612
Division of Energy,Mineral,and Land Resources [phone]
E.DETERMINATION OF AFFECTED ACREAGE AND BOND
The following bond calculation worksheet is to be used to establish an appropriate bond(based upon a range of$500 to$5,000
per affected acre)for each permitted mine site based upon the acreage approved by the Department to be affected during the
life of the mining permit.Please insert the approximate acreage,for each aspect of the mining operation,that you intend to affect
during the life of this mining permit(in addition,please insert the appropriate reclamation cost/acre for each category from the
Schedule of Reclamation Costs provided with this application form)OR you can defer to the Department to calculate your bond
for you based upon your maps and standard reclamation costs:
CATEGORY AFFECTED RECLAMATION RECLAMATION
ACREAGE COSTIACRE COST
Tailings/Sediment Ponds 8.80 Ac. X $ 1,500 /Ac. _ $ 13,200.00
Stockpiles 8.00 Ac. X $ 1,800 /Ac. _ $ 14,400.00
Waste Piles 1.00 Ac. X $ 2,000 /Ac. _ $ 2,000.00
Processing Area/Haul Roads 7.60 Ac. X $ 1,800 /Ac. _ $ 13,680.00
Mine Excavation 79.73 Ac. X $ 2,000 /Ac. _ $ 159,460.00
Other 0.00 Ac. X $ 1,500 /Ac. _ $ 0.00
TOTAL AFFECTED AC.: 105.13 Ac.
TOTAL PERMITTED AC.: 115.82 Ac.
Temporary&Permanent Sedimentation&Erosion Control Measures:
Divide the TOTAL AFFECTED AC.above into the following two categories:a)affected acres that drain into proposed/existing
excavation and/or b)affected acres that will be graded for positive drainage where measures will be needed to prevent offsite
sedimentation and sedimentation to onsite watercourses and wetlands.
a) Internal Drainage 150.13 Ac.
b) Positive Drainage 0.00 Ac. X $1,500.00 = $ 0.00
SUBTOTAL COST:$ 202,740.00
Inflation Factor:
SUBTOTAL COST LIFE OF MINING OPERATION OR LIFE INFLATION COST
OF LEASE(YEARS)
0.02 X $ 202,740.00 X 20 = $ 81,096.00
Total Reclamation Bond Cost:
ETOTALECLAMATION BOND COST= SUBTOTAL+INFLATION = $283,800.00
Round down to the nearest$100.00
NOTE:The reclamation bond cannot exceed$1 million per GS 74.54
Revised September 21, 2021 P age 114

STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENTAL QUALITY
Land Quality Section
Bond Pursuant to'The Mining Act of 1971"
(G.S. 74-46 through G.S.74-68)
KNOW ALL MEN BY THESE PRESENTS,that FSC II, LLC dba Fred Smith Company
a Limited Liability Company and having its principal office at 701 Corporate Center Drive,Suite 101,Raleigh,NC 27607
in the State of North Carolina ,as principal, and Western Surety Company
a corporation organized under the laws of the State of South Dakota and dulyauthorized bythe
Insurance Commissioner of North Carolina to do business in North Carolina,with an office located at
8601 McAlpine Park Drive , in the City of Charlotte ,North Carolina,as surety,are held and firmly bound
unto the State of North Carolina in the sum$283,800.00 of Bond No. 30221382
lawful money of the United States of America, to the payment of which will and truly be made, we bind
ourselves,our heirs, administrators and successors jointly and severally,firmly by these presents.
Signed,sealed and delivered this 6th day of June t 2024
THE CONDITIONS OF THIS BOND ARE SUCH,That Whereas,the said
FSC II, LLC dba Fred Smith Company
conducts orwill conduct mining operations in North Carolina as described in the application foran operating
permit which includes a Reclamation Plan as provided in G.S. 74-53 and has obtained approval of this
application on the day of ,20 , from the Department of Environmental Quality.
Rev. Dec 2006

NOW THEREFORE, if the said FSC II, LLC dba Fred Smith Company
shall comply with the requirements set forth in'The Mining Act of 1971"(G.S.74-46 through 74-68)and with
the rules and regulations adopted pursuant thereto and faithfully perform all obligations under his approved
Reclamation Plan then this obligation shall be null and void; otherwise to be and remain in full force and
effect until released by the Department of Environmental Quality in accordance with G.S.74-56 orcanceled
by the surety. Cancellation by the surety shall be effectuated only upon 60 days written notice thereof to the
Department of Environmental Quality and the operator as provided in G.S. 74-54.
ATTEST:
FSC II, LLC dba Fred Smith Company
Secretary or Principal
Assistant Secretary
( Attach ) By
( Corporate Seal ) President,Vice President,
( here of Corporation ) Partners, or Owner
Western Surety Company
Surety
Countersigned at 6100 Fairview Road, Suite 1800, Charlotte, NC 28210 North Carolina
By:
Resident A nt of NC Agent and Attorney in Fact
G. Timothy Wilkerson Renee Ellis, Attorney in Fact =
*PLEASE MAIL THIS FORM AND THE ATTACHED INSTRUMENT _
TO THE FOLLOWING ADDRESS:
LAND QUALITY SECTION
1612 MAIL SERVICE CENTER
RALEIGH, NC 27699
Page 2 of 2
Rev. Dec 2006

Western Surety Company
POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY-IN-FACT
Know All Men By These Presents,That WESTERN SURETY COMPANY,a South Dakota corporation,is a duly organized and existing corporation having its
principal office in the City of Sioux Falls,and State of South Dakota,and that it does by virtue of the signature and seal herein affixed hereby make,constitute and appoint
Thomas J. Gentile, Billie Jo Sanders, Paul B Scott Jr.,Renee Ellis, Milton A Kopf III,David J Durden,Joshua Price,
Individually
of Montgomery, AL, its true and lawful Attorneys)-in-Fact with full power and authority hereby conferred to sign, seal and execute for and on its behalf bonds,
undertakings and other obligatory instruments of similar nature
-In Unlimited Amounts-
and to bind it thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the corporation and all the acts of said Attorney,
pursuant to the authority hereby given,are hereby ratified and confirmed.
This Power of Attorney is made and executed pursuant to and by authority of the Authorizing By-Laws and Resolutions printed at the bottom of this page,duly
adopted,as indicated,by the shareholders of the corporation.
In Witness Whereof,WESTERN SURETY COMPANY has caused these presents to be signed by its Vice President and its corporate seal to be hereto affixed on
this 9th day of November,2023. «ETA WESTERN SURETY COMPANY
j ! CO+
��OQ`QGRgr
SEAoe
�rH D
Larry Kasten,Vice President
State of South Dakota
ss
County of Minnehaha
On this 9th day of November,2023,before me personally came Lang Kasten,to me known,who,being by me duly swom,did depose and say: that he resides in
the City of Sioux Falls,State of South Dakota;that he is a Vice President of WESTERN SURETY COMPANY described in and which executed the above instrument;
that he knows the seal of said corporation;that the seal affixed to the said instrument is such corporate seal;that it was so affixed pursuant to authority given by the Board
of Directors of said corporation and that he signed his name thereto pursuant to like authority,and acknowledges same to be the act and deed of said corporation.
}.tihti.�MtiMM•titi4MM4tititi
My commission expiresr M.BENT
+ NOTARY PUBLIC +
March 2,2026 i SOUTH DAKOTA
M.Bent,Notary Public
CERTIFICATE
1,L.Nelson,Assistant Secretary of WESTERN SURETY COMPANY do hereby certify that the Power of Attorney hereinabove set forth is still in force,and further
certify that the By-Law and Resolutions of the corporation printed below this certificate are still in force. In testimony whereof I have hereunto subscribed my name and
affixed the seal of the said corporation this 6th day of June,2024.
WESTERN SURETY COMPANY
C)y-
7*Qp � L.Nelson,Assistant Secretary
w
Authorizing By-Laws and Resolutions
ADOPTED BY THE.SHAREHOLDERS OF WESTERN SURETY COMPANY
This Power of Attorney is made and executed pursuant to and by authority of the following By-Law duly adopted by the shareholders of the Company.
Section 7. All bonds,policies,undertakings,Powers of Attorney,or other obligations of the corporation shall be executed in the corporate name of the Company by
the President,Secretary,and Assistant Secretary,Treasurer,or any Vice President,or by such other officers as the Board of Directors may authorize. The President,any
Vice President, Secretary, any Assistant Secretary, or the Treasurer may appoint Attorneys in Fact or agents who shall have authority to issue bonds, policies, or
undertakings in the name of the Company. The corporate seal is not necessary for the validity of any bonds, policies, undertakings, Powers of Attorney or other
obligations of the corporation. The signature of any such officer and the corporate seal may be printed by facsimile.
This Power of Attorney is signed by Larry Kasten,Vice President,who has been authorized pursuant to the above Bylaw to execute power of attorneys on behalf of
Western Surety Company.
'I'his Power of Attorney may be signed by digital signature and sealed by a digital or otherwise electronic-formatted corporate seal-under and by the authority of the
following Resolution adopted by the Board of Directors of the Company by unanimous written consent dated the 2791 day of Apn1,2022 `
"RESOLVED:That it is in the best interest of the Company to periodically ratify and confirm any corporate documents signed by digital signatures and to ratify and
confirm the use of a digital or otherwise electronic-formatted corporate seal,each to be considered the act and deed of the Company."-
Go to www.cnasurety.com>Owner/Obligee Services>Validate Bond Coverage,if you want to verify bond authenticity.-
Form F4280-6-2023

'7

NORTH CAROLINA MINING State of North Carolina 1612 Mail Service Center
PERMIT APPLICATION Department of Environmental Quality Raleigh,NC 27699-1612
Division of Energy,Mineral,and Land Resources [phone]
G.LAND ENTRY AGREEMENT
We hereby grant to the Department or its appointed representatives the right of entry and travel upon our lands or operation
during regular business hours for the purpose of making necessary field inspections or investigations as may be reasonably
required in the administration of the Mining Act of 1971 pursuant to G.S.74-56.
We further grant to the Department or its appointed representatives the right to make whatever entries on the land as may be
reasonably necessary and to take whatever actions as may be reasonably necessary in order to carry out reclamation which the
operator has failed to complete in the event a bond forfeiture is ordered pursuant to G.S.74-59.
LANDOWNER: APPLICANT:
Signature / Signature'
Print Name Andrew J. Norton Print Name Andrew J. Norton
Title(if applicable) vice President and Assistant Secretary Title Vice President and Assistant Secretary
Company(if applicable) FSC II, LLC Company FSC II, LLC
Address 701 Corporate Center Drive,Suite 195 Mine Name Hamlet Plant
Raleigh, NC 27607 Telephone [phone]
Telephone [phone] Date Signed
-7 /a /aoay
Date Signed
'Signature must be the same as the individual who signed Page 1 of this application.
One original and five(5)copies of the completed application,six(6)copies of all location maps,mine maps and
reclamation maps,and the appropriate Processing fee in the form a check or money order Payable to the North Carolina
Department of Environmental Quality must be sent to the Raleigh Central Office at the address listed on the front cover
of this application form.
Inquiries regarding the status of the review of this application should be directed to the Mining Program staff at(919)707-9220.
Revised September 21, 2021 P a g e 119