Permit No. 07-01

HCDENK
North Carolina Department of Environment and Natural Resources
Division of Land Resources
Land Quality Section
James D. Simons,PG,PE Michael F.Easley,Governor
Director and State Geologist William G.Ross Jr., Secretary
October 22, 2008
Mr. Jeffrey C. Furness
Senior Environmental Scientist
PCS Phosphate Company, Inc.
P.O. Box 48
Aurora, North Carolina 27806
RE: Modification of Mining Permit No. 07-01
Aurora Phosphate Mine
Beaufort County
Tar-Pamlico River Basin
Dear Mr. Furness:
Your recent request to have the above referenced mining permit modified has been
approved. The modification is to increase the affected acreage at this site to 10,906.2 acres
as indicated on the Erosion and Sediment Control Plan for the Northern Area dated August 22,
2008. The modification includes the expansion into the northern area for construction of the
utility corridor and to allow production to continue. The permitted acreage at this site remains
unchanged. A copy of the modified permit is enclosed.
The conditions in the modified permit were based primarily upon the initial application.
Modifications were made as indicated by the modification request and as required to insure
compliance with The Mining Act of 1971. The expiration date, mine name and permit number
shall remain the same as before the modification. I would like to draw your particular attention
to the following conditions where minor additions or changes were made: Operating Condition
No. 41.
The issuance of a mining permit and/or any modification to it does not supersede local
zoning regulations. The responsibility of compliance with any applicable zoning regulations
lies with you.
As a reminder, your permitted acreage at this site is 12,140.4 acres and the amount of
land you are approved to disturb is 10,906.2 acres.
1612 Mail Service Center, Raleigh, North Carolina 27699-1612 - 919-733-4574/FAX: [phone]
512 North Salisbury Street,Raleigh,North Carolina,27604
An Equal Opportunity l Affirmative Action Employer—50%Recycled l 10%Post Consumer Paper

Mr. Furness
October 22, 2008
Page Two
Please review the modified permit and contact me at [phone] should you have
any questions concerning this matter.
Anl y,
. Williams, PG, CPG, CPM
State Mining Specialist
Land Quality Section
FRWrw
Enclosures
cc: Mr. Pat McClain, PE
Ms. Shannon Deaton -WRC, w/enclosures
Mr. Bradley Bennett- DWQ, w/enclosure
Mr. William Gerringer-Mine and Quarry Bureau, w/o enclosure

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:
PCS Phosphate Company, Inc.
Aurora Phosphate Mine
Beaufort County— Permit No. 07-01
For the operation of a
Phosphate 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: August 1, 2013

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.
Expiration Date
This Permit shall be effective from the date of its issuance until Auqust 1, 2013.
Conditions
This Permit shall be subject to the provision of the Mining Act, N.C.G.S. 74-46,
et. seq., and to the following conditions and limitations:

Page 3
OPERATING CONDITIONS:
1. Wastewater and Pit Dewatering
A. Any wastewater processing or mine dewatering shall be in accordance with the
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. Air Quality and Dust Control
A. Any mining related process producing air contaminant emissions including fugitive
dust shall be subject to the requirements and rules promulgated by the N.C.
Environmental Management Commission.
B. All mine access roads shall be appropriately stabilized to reduce dust and prevent
erosion and offsite sedimentation. During mining operations, water trucks or other
means that may be necessary shall be utilized to prevent dust from leaving the
permitted area.
3. Buffer Zones
A. Any mining activity affecting waters or wetlands shall be in accordance with the
requirements and regulations promulgated and enforced by the Environmental
Management Commission and the Coastal Resources Commission. Any areas
under the jurisdiction of these agencies shall be identified and the appropriate
approval documents obtained rp for to any land disturbing activities in said areas.
B. Sufficient buffer shall be maintained between any affected land and any adjoining
waterway to prevent sedimentation of that waterway from erosion of the affected
land and to preserve the integrity of the natural watercourse.
C. The width of the buffer adjacent to any watercourses at the site shall be determined
by and subject to any federal and state regulations concerning waters and wetland
areas.
D. Sufficient buffer (minimum of 25 feet) shall be maintained between any excavation
and any adjoining property line to prevent caving of that property and to allow
grading of the sideslopes to the required angle.

Page 4
E. Overburden removal for ore extraction shall not occur within 300 feet of any
neighboring dwelling house, church, school, hospital, commercial or industrial
building, public road or other public property until a formal modification request has
been submitted to and approved by the Department. The request shall clearly
describe how a physical hazard to the above features will be prevented.
4. Land Disturbance and Erosion and Sediment Control
A. Adequate mechanical barriers including, but not limited to diversions, earthen dikes,
brush barriers, 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 or
natural watercourse in proximity to the affected land.
B. An erosion and sediment control plan(s) shall be submitted to the Department for
approval prior to any land disturbing activities at the site not previously indicated on
an erosion control plan or mine map submitted to and approved by the Department.
C. The 700-acre mine expansion shall be conducted in accordance with the permit
modification application dated October 11, 1991 and the supplemental information
dated December 23, 1991 as well as the following stipulations:
1) That the predisturbance flow levels of Whitehurst Creek be maintained by
pumping groundwater into the uppermost portion of the creek at a rate to
attempt to match the pre-mined, undisturbed hydrology of the creek. This
requirement should maintain the aquatic life in the creek and maintain the
natural salinity levels at the mouth of Whitehurst Creek at South Creek. In
order to assure flow into the mitigation channel during low runoff flow, a water
source shall be constructed adjacent to the sediment pond and shall discharge
directly into the sediment pond near the upstream end;
2) That all land disturbing activities within the 700 acre expansion area shall be in
accordance with the Mitigation Plan for Replacement of 5,000 Feet of
Channelized Whitehurst Creek dated May 14, 1992 and the 401 Water Quality
Certification (Number 2748) issued by the Division of Water Quality on June 30,
1992 bnd any approved revisions to the Water Quality Certification;
3) That restoration of the headwaters of Whitehurst Creek shall be in accordance
with the Whitehurst Creek Drainage Channel Restoration Plan dated December
7, 1992 and any supplemental information approved by the Department
detailing said reclamation; and
4) That changes in the final reclamation of the headwaters of Whitehurst Creek
shall be conducted in accordance with all current and future conditions of the
Division of Water Quality's 401 Wetland Certification (#2748).

Page 5
D. All mining permit boundaries, major features of the active mining operation and final
reclamation elevations/contours shall be located in accordance with the Site
Location Map (Plant/Mine) dated August 31, 2002, the Site Reclamation Map dated
August 30, 2002, and the Site and Final Reclamation Plan — Charles Tract last
revised August 16, 2002.
E. Mining activities associated with the relocation of portions of NC Highway 306 and
the Norfolk Southern Railroad, including the installation and maintenance of the
associated sediment and erosion control measures, shall be conducted as indicated
on the Revised Mine Map, Sheets 1 through 3, dated December 6, 2002 and the
Erosion and Sediment Control Plan received by the Land Quality Section on June 5,
2003.
F. Mining-related activities on the additional 487 acres not previously covered by a
mining permit and the 2,083 acres transferred from Mining Permit No. 07-05 (EIS
Alternative E) including ancillary areas (mine support facilities), shall be conducted
as indicated by the modification application dated August 31, 1998, the Erosion and
Sedimentation Control Plan dated August 13, 1998, and the Site Plan and Final
Reclamation Plan, both dated June 22, 1998. This condition is contingent upon full
compliance with the following permits and any approved modifications to said
permits: a) US Army Corps of Engineers' 404 Permit (#198800449), b) DENR
Division of Water Quality's 401 Wetland Certification (#3092), c) DENR Division of
Water Resources' Capacity Use Permits (#CU1003 and #CU1007), and d) DENR
Division of Water Quality's NPDES Permit (#NC0003255).
G. Mining activities associated with the Purified Acid Plant AP Plant Expansion and
associated Railroad Spur Extension, including the installation and maintenance of all
associated sediment and erosion control measures, shall be conducted as indicated
on the PAP Plant 2005 Expansion Map, Sheet 1 of 2 and 2 of 2, dated April 22, 2005
and sealed by Mr. Robert M. Chiles, PE.
H. Mining activities associated with the construction of a Silicon Tetraflouride (STF)
Plant, including the installation and maintenance of the associated sediment and
erosion control measures, shall be conducted as indicated on the Sedimentation and
Erosion Control Plan for Proposed STF Plant, Sheets 1 and 2 of 2 dated September
12, 2006.
I. Mining activities associated with the expansion into the Northern Area of the Mine
Permit, including the installation and maintenance of all associated erosion and
sediment control measures, shall be conducted as indicated on the Erosion and
Sediment Control Plan for the Northern Area dated August 22, 2008 and the
supplemental information received by the Land Quality Section on September 2,
2008 and October 8, 2008.

Page 6
5. Groundwater Protection
A. Observation wells shall be installed and monitored as deemed necessary by the
Department.
B. The observation wells shall be secured against unauthorized entry with a lockable
cap. Any necessary permits or approvals to construct these wells shall be obtained
from the N.C. Division of Water Quality, Groundwater Section with a lockable cap.
Any necessary permits or approvals to construct these wells shall be obtained from
the N.C. Division of Water Quality, Groundwater Section.
C. Water from the observation wells shall be analyzed, and corresponding results
reported, as required by the applicable agencies within the Department.
D. If nearby potable wells are impacted by the mine dewatering activities, the permittee
shall mitigate such impacts through bearing the costs for replacement or
modifications to the wells or pumps to maintain the potable water supply to local
residences.
6. Graded Slopes and Fills
A. The angle for graded slopes and fills shall be no greater than the angle that 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 offsite damage because of siltation, shall be planted or otherwise
provided with groundcover, devices or structures sufficient to restrain such erosion.
B. Up to the first fifty (50) feet of overburden shall be removed by a bucket wheel
excavator system or dredging and conveyed to previously mined areas for
reclamation. The remaining overburden shall be removed by draglines and cast into
previously mined areas in windrows.
C. Oversized phosphate pebbles and gangue materials (rejects) in the ore matrix shall
be stockpiled in the vicinity of the mill area or returned to a previously mined area.
This material may be utilized for internal road construction and maintenance. It may
also be made available to the general public as well as state and local governments.
D. The quartz sand (sand tailings) from the ore matrix shall be pumped to previously
mined areas for backfill either alone or in a blend with gypsum and clay. It shall also
be utilized for dike and roadway construction.
E. The clay material from the ore matrix shall be pumped to the previously mined areas
for backfill, either alone or in a blend with gypsum. Clay only discharges shall not
exceed 25% of the total of any waste discharges into previously mined areas.
Records documenting the amount of clay vs. clay/gypsum blend discharges into
mined areas shall be maintained at the mine office and be available for review by
Department personnel upon request.

Page 7
F. The gypsum byproduct used in the clay/gypsum blend shall be stockpiled next to the
processing plant in no more than a three stockpile rotation. Solids from cleaning the
cooling ponds or associated ditches may be pumped to either of the active gypsum
stacks.
G. Any dikes/embankments at the mine site shall be constructed, stabilized and
maintained in accordance with the Dam Safety Law of 1967 and corresponding
regulations promulgated by the N.C. Environmental Management Commission. The
Land Quality Section shall enforce such requirements and regulations.
7. Surface Drainage
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. High Wall Barrier
A physical barrier shall be maintained at all times around the perimeter of any highwall to
prevent inadvertent public access. Examples of such barriers could include vegetated
earthen berms, canals or gates.
9. Visual Screeninq
Existing vegetation shall be maintained between the mine and public thoroughfares to
screen the operation from the public. Additional screening methods, such as constructing
earthen berms or additional tree plantings, shall be employed as deemed appropriate by
the Department.
10. Plan Modification
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 this mining permit and any approved revisions to
it. Approval to implement such changes must be obtained from the Department prior to
on-site implementation of the revisions.
11. Refuse Disposal
A. No on-site disposal of refuse or other solid waste that are 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 Solid 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.

Page 8
B. Mining refuse as defined by G.S. 74-49 (14) of The Mining Act of 1971 generated
on-site and 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 Solid 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. Soils made
acidic due to spills may be neutralized in the gyp/clay blend tank and then
discharged to a reclamation area with the blend.
D. 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;
7) Inert mining construction/demolition debris (asphalt, bricks, concrete, gravel,
ceramics, furnace refractory materials, neutralized acid bricks, metal culverts
[originally tar coated]);
8) Spent mining/processing materials (filter cloths and belts, neutralized activated
carbon, scrubber packing, sulfur and sulfur coated metals;
9) Used mining/processing equipment (metal pipes and parts, some with
rubberlinings; rubber hoses and belts);
10) Excess packing/materials (wooden pallets, spools and crates); and
11) Transport vehicle trash (sweepings, waste grains and dirt) and grain/fertilizer
rail hopper car heels consisting of grains and fertilizer-related residue.
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;
and
4) Verification that a permanent vegetative ground cover will be established.
E. The disposal of scrap metal containing small quantities of Naturally Occurring
Radioactive Material (NORM) in the No. 2 Gypsum Stack shall be conducted in
accordance with the Division of Radiation Protection's report dated June 7, 2001 and
the G-2 Proposed Disposal Area Map dated March 21, 2001 (including its
corresponding Attachment 4: Future Material Burial Site Closeup).

Page 9
F. The 20 acre expansion of the previously approved mine refuse disposal area shall
be conducted in accordance with the Mining Refuse Area Map dated June 1, 2001
and the Site Location Map (Plant/Mine) dated August 31, 2002.
G. The Naturally Occurring Radioactive Material (NORM) burial area is to be relocated
as indicated on the Gypstack No. 2 Proposal NORM Burial Maps dated July 14,
2004 to allow for the burial of small quantities of NORM at the PCS phosphate
Aurora mine site with the stipulation that all guidelines and procedures
recommended by the Division of Radioactive Protection in its June 7, 2001 letter
with attachments to PCS Phosphate regarding disposal of NORM-contaminated
material onsite in the No. 2 Gypsum Stack.
H. Mining refuse generated on-site shall be disposed of in the 250 acre area within the
mine excavation area as indicated on the Proposed Mine Refuse Area Location
Maps dated October 11, 2007 and the supplemental information received by the
Land Quality Section on May 29, 2008 and June 6, 2008.
12. Annual Reclamation Report
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.
13. Bonding
The security, which was posted pursuant to N.C.G.S. 74-54 in the form of a $500,000.00
surety bond, meets the current Departmental requirements. This security shall remain in
force for this permit to be valid. The total affected land shall not exceed the bonded
acreage.
14. Archaeological Resources
Authorized representatives of the Division of Archives and History shall be
granted access to the site to determine the presence of significant archaeological
resources.
15. Blasting
Blasting to facilitate the current and future removal of well casings located around the
perimeter of the mine site shall be conducted in accordance with the "Procedures for
Explosives on PCS Phosphate Property" attached to Mr. Jeff Furness' letter dated April 3,
1997. In addition, the permittee shall contact the Washington Regional Land Quality
Section Office at least 48 hours prior to any future blasting of well casings at the site.

Page 10
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,
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.
RECLAMATION CONDITIONS:
1. Provided further, and subject to the Reclamation Schedule, the planned reclamation for
the 2003-2013 permit period shall be: 1) backfill the mine excavations to original
elevation or higher except in those areas where approved wetlands mitigation projects are
required (the final elevations may be below original surface elevations), 2) stabilize all
waste disposal areas and settling ponds, and 3) regrade and revegetate any areas in
unconsolidated material.
2. The specifications for surface gradient restoration to a surface suitable for the planned
future use are as follows:

Page 11
A. Reclamation of mined land and settling ponds shall be accomplished in two phases:
1) physical restoration and 2) revegetation. Physical restoration shall be
accomplished by 1) backfilling with bucket wheel excavator dredge spoil
(overburden) material and dragline cast material, 2) backfilling with sand tailings
from the flotation section of the mill, 3) backfilling with clay/gypsum blend, and 4)
capping the blend surface with an overburden cap to enhance the establishment of
vegetation.
B. Upon completion of the backfilling activity noted in 2.A. above, the surface shall
approximate the desired final contours as indicated on the Site Reclamation Map
dated August 30, 2002.
C. Rehabilitation of the clay settling ponds at or associated with this permitted mining
operation shall include the desiccation of water from the surface of the ponds by the
installation of drainage ditch systems. Such drainage systems, in addition to
.establishing vegetation including tree plantings, should aid in the consolidation of the
clays in the ponds. Reclaimed clay ponds 3 and 4A may be utilized as wildlife
habitats, forestry areas, or agricultural areas. Clay ponds 5A and 5B may be utilized
as wetland habitats, as well as other wildlife habitats. In any event, the final
contours of the surface of the clay ponds shall be in accordance with the Site and
Final Reclamation Map — Charles Tract dated August 16, 2002.
D. Every six (6) months, the permittee shall submit to the Department detailed reports
of reclamation activities and reclamation research for each of the following areas:
1) Charles Tract clay waste areas;
2) Clay-gypsum blend areas;
3) Gypsum stockpile areas;
4) - Sand Tailings areas; and
5) Other areas
Each report shall include a specific plan and schedule for future reclamation and
reclamation research.
E. All settling ponds and sediment control basins used for sedimentation control shall
be backfilled, graded, and stabilized or cleaned out and made into acceptable lake
areas after such ponds and basins are no longer needed for sedimentation control.
F. The processing, stockpile, and other disturbed areas neighboring the mine
excavations shall be graded to slopes no steeper than a 4 horizontal to 1 vertical,
unless approved by the Division of Land Resources.
G. Compacted surfaces shall be disced, subsoiled or otherwise prepared before
revegetation.

Page 12
H. On-site disposal of waste shall be in accordance with Operating Conditions Nos. 11A
through H of this permit.
I. The affected land shall be graded to prevent the collection of noxious or foul water.
3. Overburden Capping of R-2 Forward:
The following requirements shall apply to the capping of reclaimed mine areas to protect
the environment from the risk of cadmium uptake:
The Permittee shall cap all mined areas that are reclaimed with the gypsum-clay blend
process, from R-4 forward. The goal of the cap shall be a minimum 3-foot thick cap of
overburden material (similar to background soils for the region) over 100% of the blend
areas. Minimal acceptable performance standards in achieving this cap shall be as
follows:
70% of the total surface area with a minimum of 3-foot cap;
25% of the total surface area with a minimum of 2-foot cap; and
5% of the total surface area unspecified.
Various blend area strategies may be evaluated on the R-2 and R-3 blend areas until
September 30, 2008, to prevent unacceptable levels of cadmium uptake in a manner
which adequately protects the environment. The evaluation shall include an assessment
of the necessity and financial practicability of potential uptake prevention strategies,
including the accepted capping strategy. The selection of an uptake prevention strategy, if
appropriate and necessary, shall be supported by competent material and substantial
evidence developed during the evaluation.
If appropriate and necessary, Permittee shall commence treatment of R-2 and R-3 utilizing
existing acceptable capping strategy or other DENR approved method by September 30,
2008. Treatment of R-2 and R-3 shall be completed by December 31, 2011. Permittee
shall strive to minimize this time requirement. Further, during the evaluation process, the
Permittee shall annually report measures undertaken as a part of the evaluation.
Permittee may elect at any time during or after the evaluation period to comply with this
condition by capping in accordance with the above capping strategy. Such election by
Permittee during the evaluation process shall not preclude the implementation, following
the evaluation process and approval by DENR, of any less burdensome alternative that is
indicated by the evaluation. If during this evaluation period for R-2 and R-3 another
procedure is found that adequately addresses the hazard of cadmium, the Permittee may
elect to amend the permit to allow that procedure to be used for R-4 and forward blend
areas.

Page 13
While the Permittee is studying this issue and prior to implementing the uptake prevention
strategy, all unrestricted public access to the blend reclamation areas shall be denied. In
addition, deed restrictions preventing the residential or agricultural use of the property
shall be placed on areas encompassed by R-1 and the permitted Charles Tract clay ponds
and recorded in the Office of the Registrar of Deeds of Beaufort County: however,
Permittee or a subsequent owner may ask that these restrictions be waived or released by
the Secretary of the Department of Environment and Natural Resources as provided for in
N.C.G.S Section 130A-3108(f).
4. Reveaetation Plan:
Disturbed areas at the site shall be permanently revegetated according to the following
Revegetation Plan provided with the renewal application dated November 7, 2002:
Seeding recommendations:
A. Dike slopes—Spring/Summer Seeding
Type Rate (Pounds/Acre)
Hulled Bermudagrass 25
Common Sudangrass 50
Japanese Millet 50
B. Dike slopes — Fall Seeding
Type Rate (Pounds/Acre)
Kentucky 31 Tall Fescue 50
Crimson Clover 25
C. Reclaimed Area, Flat or Gently Rolling — Spring Seeding
Type Rate (Pounds/Acre)
Legumes* 20
Japanese Millet 50
Bermudagrass 25
D. Reclaimed Area, Flat or gently Rolling — Fall Seeding
Type Rate (Pounds/Acre)
Legumes* 20
Winter Wheat 90
These are typical mixes. Additional species may be added where specific conditions
warrant.
Lime and fertilizer shall be applied to any area as recommended by soil test results.

Page 14
After seeding, various types of tree seedlings are planted for wildlife habitat. Species
such as green ash, bald cypress, sycamore, red maple, cottonwood, sweetgum, swamp
chestnut oak, sawtooth oak, eastern red cedar, longleaf pine, and loblolly pine are planted
at a density of approximately 300 trees per acre. The ground cover species initially
planted are allowed to be taken over by herbaceous and shrub species colonizing the site
on their own.
*Legumes that could be seeded on the reclaimed areas include sweetclover, crimson
clover, ladino clover, alfalfa, Kobe lespedeza or hairy vetch.
Consideration should be given to some use of native grasses such as switch grass,
Indian grass, little bluestem, big bluestem and gama grass.
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.
5. Reclamation Plan:
A. 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.
B. Specific reclamation areas and schedules shall be as described in the following table
taken from the renewal application dated November 7, 2002:
1) R-Areas Final Reclamation
Final Revegetation
R-Area Acres Date (Year)
R-1 475 1994
R-2 425 2004
R-3 945 2004
R-4 380 2008
R-5 465 2015
R-6 460 2007
R-7 870 2020
R-8 480 2018
R-9 (NCPC) *** 2023
R- 10 (NCPC) *** 2026
R-11 (NCPC) *** 2029
*** Undetermined at this time.

Page 15
2) Charles Tract
Final Revegetation
Pond Acres Date (Year)
3 190 1995
4A 240 1994
5A* 215 2004
5B* 325 2006
* Pond Nos. 5A and 5B are areas designated for wetland development and plans
are being developed to reclaim these two areas.
This permit, issued July 20, 1972, renewed July 20, 1982, modified April 1, 1985, April 8, 1988,
February 8, 1990, November 29, 1990, June 13, 1991, September 6, 1991, October 31, 1991,
February 28, 1992, June 2, 1992, June 4, 1992, July 6, 1992, July 27, 1992, July 28, 1992 and
January 4, 1993, renewed January 4, 1993, modified March 17, 1994, June 20, 1994, January
5, 1995, September 15, 1995, April 4, 1996, June 10, 1996, April 10, 1997, November 19,
1997, September 24, 1998, December 22, 1998, February 11, 1999, July 30, 1999, September
15, 1999, January 21, 2000, March 28, 2000, April 20, 2000, January 25, 2001, April 9, 2001,
August 27, 2001, December 20, 2001, January 24, 2002 and May 23, 2002, renewed August
1, 2003 and modified August 4, 2004, August 14, 2004, April 8, 2005, October 20, 2006 and
July 18, 2008, is hereby modified this 22" day of October, 2008 pursuant to G.S. 74-52.
By: v
James D. Simons, Director
Division of Land Resources
By Authority of the Secretary
Of the Department of Environment and Natural Resources

Page 16
List of Modifications
April 1, 1985: This permit has been modified to change the projected mining and
reclamation schedule as well as incorporate changes to the reclamation plan to allow
backfilling of the mine areas with a blend of gypsum and clay tailings.
April 8, 1988: This permit has been modified to add approximately 550 acres of adjacent land
to make the Texasgulf, Inc. and NCPC permit areas contiguous. The modification also
includes a change in the mine advance direction and a change in the pre-strip method (i.e.,
use of a bucket wheel excavator in lieu of a hydraulic dredge).
February 8, 1990: This permit has been modified to include and allow mining activities on an
adjacent 160 acres of land with several stipulations.
November 29, 1990: This permit has been modified to remove the last sentence of Operating
Condition No. 7.8.4. which requires Texasgulf, Inc. to develop and submit a plan by 1992 to
blend all new clays and gypsum directly'at the plant for permanent waste disposal/reclamation.
This modification has been approved provided that no new gypsum stacks are constructed.
June 13, 1991: This permit has been modified to include and allow mining activities on an
adjacent 250 acres of land with several stipulations.
,September 6, 1991: This permit has been modified to include the construction of
a new sulfur rail unloading system adjacent to the current sulfur tracks at the plant site with
several stipulations.
October 31, 1991: This permit has been modified to allow the second trial
capping of approximately 35 acres (10%) of the R-2 blend area with a 4:1 sand to clay cap
ratio.
October 31, 1991: This permit has been modified to allow the reactivation of Gypsum Pile 3/4
with several stipulations.
February 28, 1992: This permit has been modified to include the 700-acre mine advance
south of the current permit area with several stipulations.
June 2, 1992: This permit has been modified to allow capping of the R-2 blend area with a
clay cap, 18 to 24 inches thick, provided that this capping process does not result in
impoundment of water against the dikes.
June 4, 1992: This permit has been modified to allow borrow pit activities in the 700 acre
modification area (upstream of SR 1937) prior to implementing the hydrology modeling and
monitoring requirements as required by the February 28, 1992 modification with several
stipulations.

Page 17
July 6, 1992: This permit has been modified, with stipulations, to allow the development of the
mine utility corridor around the 700-acre modification area. This will be accomplished by
leaving four gaps in the perimeter canal system to permit water to continue to flow through the
existing lead ditches into the headwaters of Whitehurst Creek.
July 27, 1992: This permit has been modified to allow the placement of a 30-inch culvert in
each of the uncut lead ditches and for the subsequent placement of coarse granular washer
reject material over said culverts to allow equipment access to the mine utility corridor area
along the perimeter of the 700-acre mine expansion.
July 28, 1992: This permit has been modified to extend the previous reclamation deadlines
specified in this mining permit to those provided in the July 22, 1992 letter from Texasgulf, Inc.
to the Department.
January 4, 1993: This permit has been modified to include the approval of the "Mitigation Plan
for Replacement of 5,000 Feet of Channelized Whitehurst Creek" dated May 14, 1992 and the
"Whitehurst Drainage Channel Restoration Plan" dated December 7, 1992.
March 17, 1994: This permit has been modified to allow the addition and mining of the 360-
acre mine block south of the existing mine area as indicated in Mr. William Schimming's
January 25, 1994 letter and supporting documentation.
June 20, 1994: This permit has been modified to allow capping of the 900 acre R-3 blend area
with a clay cap as indicated in Mr. William Schimming's May 26, 1994 letter to the Department.
January 5, 1995: This permit has been modified to allow the addition and mining of the 290-
acre mine block east of the existing mine area as indicated in Mr. William Schimming's
November 18, 1994 letter and supporting documentation.
September 15, 1995: This permit has been modified to allow blasting operations to facilitate
the removal of five deep well casings located around the perimeter of the mine site.
April 4, 1996: This permit has been modified to allow: a) the addition and mining of the 770-
acre mine block south of the existing mine area, b) the relocation and restoration of Bailey
Creek, and c) a change in the name of the company and mine name on the permit as indicated
by Mr. B. A. Peacock's December 8, 1995 letter and supporting documentation.
June 10, 1996: This permit has been modified to allow adjustments to the approved plan for
the relocation of Bailey Creek as indicated by the "Sketch Plan - Temporary Water Diversion
for Bailey Creek Relocation" dated May 22, 1996 and associated letter dated May 23, 1996
with the following stipulation: appropriate approvals must be obtained from the Division of
Water Quality and the U.S. Army Corps of Engineers prior to implementation of the
modifications.

Page 18
April 10, 1997: This permit has been modified to allow blasting to facilitate the current and
future removal of well casings located around the perimeter of the mine site contingent upon
the permittee following the "Procedures for Explosives on PCS Phosphate Property" attached
to Mr. Jeff Furness' letter dated April 3, 1997. In addition, the permittee shall contact the
Washington Regional Land Quality Section office at least 48 hours prior to any future blasting
of well casings at the site.
November 19, 1997: This permit has been modified to allow activation of 450 acres already
under permit and to add/mine 650 acres to the west of the existing mining operation. This will
result in a 1,100-acre mine block. In addition, a new mining refuse disposal area in Mine Block
24, including clarification of the items to be disposed in said area, is approved as indicated in
Mr. Stephen Phillips' letter dated October 6, 1997. The above modifications are approved
provided that: a) the Erosion and Sedimentation Control Plan dated September 24, 1997, the
1100 Acre Mine Plan Map and Final Reclamation Plan - Southern Permit Area, both dated
September 29, 1997, and the contents of the modification application dated October.8, 1997
are strictly adhered to for the mine expansion and b) the new mining refuse disposal area is
restricted to the items listed in Attachment 1 of Mr. Phillips' October 15, 1997 letter and to the
boundaries indicated on the Mining Refuse Area map dated September 11, 1997.
September 24, 1998: This permit has been modified to allow changes in the final reclamation
of the headwaters of Whitehurst Creek, changes in the mine refuse disposal area, and
approval to remove overburden by hydraulic dredging with the following stipulations: a) the
final reclamation of the headwaters of Whitehurst Creek shall be conducted in accordance with
all current and future conditions of the Division of Water Quality's 401 Wetland Certification
(#2748), b) the previous approval to move the mine refuse disposal area shall be rescinded,
the existing disposal area shall.be used by extending its western boundary approximately 250
feet as shown on the Mining Refuse Area map dated May 29, 1998, and the materials to be
disposed shall remain the same as previously approved, and c) the temporary reinstitution of
dredging for the removal of the top approximately 35 feet of overburden ahead of the draglines
shall be conducted in two separate blocks, each approximately 120 acres, as indicated on the
"1100 Acre Mine Plan Map - Dredge Schematic" dated May 20, 1998. This activity shall be
restricted to the northwest corner of the recently permitted 1,100-acre area on the west side of
the current mining operation. All water from the dredge blocks shall ultimately be discharged
through an NPDES-permitted outfall.

Page 19
December 22, 1998: This permit has been modified to include the addition of 487 acres not
previously covered by a mining permit and the transfer of 2,083 acres from Mining Permit No.
07-05. This acreage includes ancillary areas (mine support facilities) that were not included in
Alternative E approved by the U.S. Army Corps of Engineers and DENR's Division of Water
Quality. The modification also allows the expansion of the current mining operation as
indicated by the modification application dated August 31, 1998, the Erosion and
Sedimentation Control Plan dated August 13, 1998, and the Site Plan and Final Reclamation
Plan, both dated June 22, 1998. This modification is contingent upon full compliance with the
following permits and any approved modifications to said permits: a) US Army Corps of
Engineers' 404 Permit (# 198800449), b) DENR Division of Water Quality's 401 Wetland
Certification (#3092), c) DENR Division of Water Resources' Capacity Use Permits (#3 and
#CU0200007), and d) DENR Division of Water Quality's NPDES Permit (#NCO003255).
February 11, 1999: This permit has been modified to rescind Operating Condition No. 11.D.4.
as the standard permit requirement that disposal of mining refuse in the approved disposal
area be at least 4 feet above the seasonally high water table is not applicable to this site.
July 30, 1999: This permit has been modified to include the addition of 8.5 acres of land along
the southeast corner of the permit boundary and the movement of the DPW canal in this area
as indicated in the modification request dated May 19, 1999 and its attached map and cross-
sections. In addition, Operating Condition No. 16 of this mining permit has been modified per
the separate modification request dated June 24, 1999 pertaining to the cadmium and heavy
metal study that is currently underway. Lastly, this permit has been modified to allow disposal
of mining refuse items found in Gyp Stack #2 as outlined in the modification request dated July
12, 1999 and the supplemental information dated July 14, 1999.
September 15, 1999: This permit has been modified to add 112 acres to Phase I on the NCPC
Tract within the current mining permit boundary. This additional affected area is within the EIS
Alternative E boundary, as permitted by the US Army Corps of Engineers and the
Department's Division of Water Quality.

Page 20
January 21, 2000: This permit has been modified to: 1) allow the placement of a limited
amount of dredge spoil into the R-6 gypsum/clay blend reclamation area under two scenarios:
a) when repair work is required to either the dredge land booster pump or land discharge
pipeline, a Y-valve in the dredge spoil pipeline ahead of the booster pump would be used to
divert dredge spoil into R-6 when repairs are needed, and b) when it is time to cap the R-6
area with the dredge sweepings (the silty material in the final dredge cut). The R-6
reclamation area will be capped at grade, at approximately +15 msl; 2) relocate the area used
to clarify water from the mine area from the current clarification lake to the southern half of the
R-3 blend reclamation area to allow the turbidity to be reduced, and then discharge it out an
NPDES permitted outfall. A minimum five foot freeboard will be maintained at all times
between the water level and the top of the R-3 dike; 3) relocate the area used to clarify water
from the mine area from the current clarification lake to a small portion of the center of the R-2
blend reclamation area to allow the turbidity to be reduced, and then discharge it out an
NPDES permitted outfall. A minimum five foot freeboard will be maintained at all times
between the water level and the top of the R-2 dike; and 4) clear approximately two acres of
land near the mine entrance to create an access road and re-route a power line. This activity,
including the installation and maintenance of associated erosion and sedimentation control
measures, will be conducted as indicated on the Power Line Relocation at Trailer City map
dated October 28, 1999.
March 28, 2000: This permit has been modified to extend the deadline for submission of the
earthworm portion of the cadmium study from April 1, 2000 to May 1, 2000. The extension is
to allow the permittee time to work with its consultants to finalize this report.
April 20, 2000: This permit has been modified to include the 0.8 acre area located in the
"Ancillary Area" on the NCPC Tract as indicated in the March 27, 2000 modification request
and associated mine maps.
January 25, 2001: This permit has been modified to: 1) include improved drainage and
sedimentation control measures at the 12.25 acre "Trailer City" as indicated in he modification
request dated December 14, 2000 and its corresponding drawings; and 2) allow the addition of
agricultural limestone in the blend circuit (up to a maximum of 150 tons per day) on an as-
needed basis as indicated in the modification request dated January 19, 2001.
April 9, 2001: This permit has been modified to allow disturbance of a 21.31 acre vegetated
area for the construction of a Defluorinated Phosphate (DFP) plant, along with its associated
erosion and sedimentation control measures, as indicated on the Grading and Drainage Plan
dated March 28, 2001 and by the Erosion and Sedimentation Control booklet dated March 29,
2001.

Page 21
August 27, 2001: This permit has been modified to: 1) allow the disposal of scrap metal
containing small quantities of Naturally Occurring Radioactive Material (NORM) in the No. 2
Gypsum Stack in accordance with the Division of Radiation Protection's report dated June 7,
2001 and the G-2 Proposed Disposal Area Map dated March 21, 2001 (including its
corresponding Attachment 4: Future Material Burial Site Closeup); 2) allow the 20 acre
expansion of the currently approved mine refuse disposal area as indicated on the Mining
Refuse Area Map dated June 1, 2001; and 3) include "grain/fertilizer rail hopper car heels
consisting of grains and fertilizer-related residue' to the list of items approved as mining refuse
to be disposed in the approved Mining Refuse Area.
December 20, 2001: This permit has been modified to increase the daily limit on
supplementary neutralization capacity to 300 tons per day of either pulverized limestone or
lime in the blend circuit on an as-needed basis as indicated in the modification request dated
November 29, 2001 and received by the Land Quality Section on December 3, 2001.
January 24, 2002: This permit has been modified to allow the disturbance of a 6.93 acre
vegetated and reject-covered area for the construction of the proposed PAP Third Train
Expansion, along with its associated erosion and sedimentation control measures, as indicated
in the "Erosion and Sedimentation Control Plan for PAP P Train Expansion"dated January
12, 2002.
'May 23, 2002: This permit has been modified to incorporate capping of reclaimed mine areas
as follows to protect the environment from the risk of cadmium uptake: PCS shall cap all
mined areas that are reclaimed with the gypsum-clay blend process, from R4 forward. The
goal of the cap shall be a minimum 3-foot thick cap of overburden material (similar to
background soils for the region that have average cadmium content <0.1 ppm) over 100% of
the blend areas. Minimal acceptable performance standards in achieving this cap shall be as
follows: 70% of the total surface area with a minimum of 3-foot cap; 25% of the total surface
area with a minimum of 2-foot cap; and 5% of the total surface area unspecified. Various
blend area capping methods shall be evaluated on the R4 and R-6 blend areas over the next
five years. This evaluation shall determine the most environmentally effective and economical
techniques of covering blend areas with overburden. PCS shall reserve the right to request a
variance from this program if it proves to be impracticable. Requested variances shall be
accompanied by suggested alternative methods of capping of blend areas. This overburden-
capping program will require a lengthening of time necessary to complete reclamation of these
blend areas. PCS shall strive to minimize this time requirement.
August 1, 2003: This permit has been renewed for another 10 years and conditioned to
require capping of gypsum-clay blend areas R-2 forward in the same manner as outlined in the
May 23, 2002 modification.

Page 22
August 14, 2003: This permit has been modified to increase the permitted acreage to 12,915.4
acres and the affected acreage to 11,502.2 acres as indicated on the Revised Mine Map,
Sheets 1 through 3, dated December 6, 2002 and the Erosion and Sediment Control Plan
received by the Land Quality Section on June 5, 2003. This modification includes the addition
of.4 acres of buffer land along the southeastern permit boundary to straighten out the permit
boundary and the relocation of portions of NC Highway 206 and the Norfolk Southern Railroad
to accommodate future mining plans.
August 4 2004: This permit has been modified to allow a different designated area and a
larger portion of the No. 2 Gypsum Stack for the burial of small quantities of Naturally
Occurring Radioactive Material (NORM) at the PCS phosphate Aurora mine site as indicated
on the Gypstack No. 2 Proposal NORM Burial Maps dated July 14, 2004 with stipulations.
April 8, 2005: This permit has been departmentally modified to revise Reclamation Condition
No. 3 that requires the capping of reclaimed mine areas to protect the environment from the
risk of cadmium uptake. The modification includes clarification of capping procedures for R-4
forward and establishes time frames to further evaluate the blend strategies, report the findings
to the Department, and complete capping or approved evaluated strategy for R-2 and R-3.
May 24 2005: A reduction in the affected acreage has been granted on the 113 acres around
the headwaters of Whitehurst Creek reducing the affected acreage at this site to 11,403.02
acres.
May 23, 2005: This permit has been modified to increase the affected acreage at the site to
11,516.2 acres as indicated on the PAP Plant 2005 Expansion Map Sheet 1 of 2 and 2 of
2dated April 22, 2005 and sealed by Mr. Robert M. Chiles, PE. The modification includes the
expansion of the existing Purified Acid Plant and associated Railroad Spur Extensions along
with necessary erosion and sediment control measures which results in approximately 14
additional acres to be affected.
October 20, 2006: This permit has been modified to allow the construction of a Silicon
Tetraflouride (STF) Plant in an area already affected and includes the installation and
maintenance of the associated sediment and erosion control measures as indicated on the
Sedimentation and Erosion Control Plan for Proposed STF Plant, Sheets 1 and 2 of 2, dated
September 12, 2006. The permitted and affected acreage at this site remains unchanged.
August 1, 2007: A reduction in the permitted and affected acreage has been granted as a
result of release of 702 acres at the Charles Tract Clay Ponds (Clay pond areas No. 3, No. 4A
and No. 5A were released) which results in the amount of land allowed to be disturbed at this
site to 10,701.20 acres and the permitted acres at the site is reduced to 12,140.40 acres.
July 18, 2008: This permit has been modified to allow the disposal of mining refuse generated
on-site in the 250 acre area within the mine excavation area as indicated on the Proposed
Mine Refuse Area Location Maps dated October 11, 2007 and the supplemental information
received by the Land Quality Section on May 29. 2008 and June 6, 2008. The permitted and
affected acreage at this site remains unchanged.

Page 23
October 22, 2008: This permit has been modified to increase the affected acreage at this site
to 10,906.2 acres as indicated on the Erosion and Sediment Control Plan for the Northern Area
dated August 22, 2008. The modification includes the expansion into the northern area for
construction of the utility corridor and to allow production to continue. The permitted acreage
at this site remains unchanged.