02-06 North American Emerald Mine File Pt. 19.1

North Carolina Department of Environment and Natural Resources
Division of Land Resources, Land Quality Section
Single Facility Report
Selection Criteria:
Permit # 02-06.
fine Name:
North American Emerald Mine
emrit Number.
02-06
Issue Date:
ounty:
Alexander
Region:
ermittee I-matiM
usiness Name:
North American Emerald Mines
ontact Name:
James K Hill
ddress:
531 Duncan Lane
Hiddenite, NC 28636
03/15/2o00
Mooresville Regional Office
Phone: [phone]
Expiration Date: 03/15/2010
River Basin: Yadkin-PeeDee
pplication Received: 07/06/1999 Hearing Date:
atus: Active Date Denied:
Commodity: Gemstone Release Date:
and Type: Assignment - Single Site Total Acres Permitted: 95
Bond Amount: $ 70191.80 Bonded Acres: 23
uadrangle: Hiddenite ARR Received Date:
Latitude: 35.9131 04/14/2008
Longitude:-81.0742
Verified by GPS: NO
ACREAGE INFORMATION
Calendar Year: 2007 New Acres Affected - Total: 3
New Acres Reclaimed: Settling Ponds:
0
Processing Plants /
Stockpile Areas: 0
Haul Roads:
0 Mine Excavation: 0
Acres Currently Affected: Settling Ponds:
3
Processing Plants /
Stockpile Areas: 1
Haul Roads:
8 Mine Excavation: 5
INSPECTION INFORMATION
Last Inspection: 01/21/2010
Last NOD: Inspected By: MH, AB
Last NOV:
I%
WastepileBerms: 0
Total: 0
Wastepile/Bertns: 3
Total: 20
Next Inspection: 05/12/2010

STATE OF NORTH CAROLINA
COUNTY OF ALEXANDER
Wm. Fred Walker, Jr
Petitioner
vs.
FILED
OFFICE OF
ADMINISTRATIVE HEARINGS
i y Dec 20 1204PM 2005 �G-!� 2 1 2005 'I
G
IN THE OFFICE OFI=a
ADMINISTRATIVE HEARINGS
04 ERR 2162
N. C. Department of Environment and
Natural Resources
Respondent
NOTICE OF CLOSURE
Petitioner has filed a Voluntary Dismissal in the above -captioned matter. Therefore, no
further proceedings are needed or required to resolve the contested case captioned above, and
this contested case is CLOSED.
This the 20th day of December, 2005.
L. CO er, II
Administrative Law Judge

ROBINSON BRADSHAW & HINSON
CHARLOTre OFFICE DIRECT DIAL. 704.377. e 1 1 2
r1 DIRECT FAX: 704.3,39-341 2
✓7-� JREVELLE` RBH.COM
October 17, 2005
Ms. Anita LeVeaux
N.C. Department of Justice
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699
Re: WM.. Fred Walker, Jr. v. N.C. Dept. of Environment and Natural Resources, Case
No. 04-EHR-2162
Dear Anita:
Enclosed are three original Settlement Agreements executed by Dorothy Watkins and
Fred Walker. We look forward to receiving one fully executed original from you.
Please let me know if you have any questions.
Sincerely,
/-a
Jennifer F. Revelle
JFR/dh
Enclosures
cc: Mr. William W. Toole
C-931345v1 18484.00011
RECEIVED
OCT 2 4 2005
N.C. ATTORNEY GENERAL
Environmental Division
Attorneys at Law
Charlotte Office: 101 North Tryon Street, Suite 1900, Charlotte, NC 28246 Ph: 704.377.2536 Fx: 704.378.4000
South Carolina Office: 140 East Main Street, Suite 420, P.O. Drawer 12070, Rock Hill, SC 29731 Ph: 803.325.2900 Fx: 803.325.2929

STATE OF NORTH CAROLINA
COUNTY OF ALEXANDER
Wm. Fred Walker, and )
D&M Emeralds, Inc. )
Petitioners, )
V. )
N.C. Department of Environment and )
Natural Resources, )
Respondent. -- )
- IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
04 EHR 2162
SETTLEMENT AGREEMENT
Wm. Fred Walker and D& M Emeralds, Inc. ("Petitioners"), North American Emerald
Mines, Inc. ("NAEM"), and the North Carolina Division of Land Resources ("DLR") of the
North Carolina Department of Environment and Natural Resources, Respondent, hereby enter
into this Settlement Agreement ("Agreement") in order to resolve a matter in controversy
between Petitioners and Respondent, and to avoid a controversy with NAEM, all pursuant to
N.C. Gen. Stat. §15013-31(b). This matter comes within Respondent's purview as it relates to
matters which concern Mining Permit number 02-06, held by NAEM, for the purpose of mining
properties located in Alexander County, North Carolina. While NAEM is not a party to the
above Office of Administrative Ifearing's case, they are a necessary and essential party to this
Agreement.
NOW, THEREFORE, without any trial of fact or law in this matter and in mutual
consideration of the covenants set forth below, DLR, Wm. Fred Walker, NAEM and D & M
Emeralds hereby agree as follows:

That NAEM shall:
a. Request DLR to modify the Mining permit, only as it relates to conditions
8. A and 8. J of the permit, incorporated herein by reference. The request
shall be as follows.
1. Pertinent parts of the Mining Permit shall be amended to provide in
section 8.A that "[i]n all blasting operations, the maximum peak particle
velocity of any component of ground motion shall not be greater than 251r6
of Figure V as allowed by provision 8.A.
2. Pertinent parts of the Mining Permit shall be amended to provide in
section 8.J that "warning of mine blasting will be given 30 minutes prior
to blasting so that the warning will be perceived ... by the nearest two
property ov: ners to tha site of :tic blasting..." i.e., by Wtuker and D&M
Emeralds,hic.
2. Upon the receipt of the request from NAEM, DLR shall modify the Mining
Permit as requested by NAEM pursuant to paragraph 1.
Upon issuance of a final Minmg Permit with the amendments as set out in
paragraph 1, Petitioners shall dismiss with prejudice their petitions in the above referenced
action.
4. The parties and signatories agree that all parties have been correctiy designated
and that there is no question as to misjoinder or nonjoinder.
5. The parties agree that the consideration for this settlement is the promises
contained herein, each party will be responsible for their respective litigation expenses and that
this Agreement contains the whole agreement between them.

6. This Agreement shall be binding upon the parties, their successors and assigns,
upon execution by the undersigned, who represent and warrant that they are authorized to
enter into this agreement on behalf of the parties hereto.
FOR THE DIVISION OF LAND
RESOURCES
By:
James D. Simons, Director
Date: 10 -2z 'S
FOR D&M EMERALDS, INC.
z'
By' ---
Date:
FOR NORTH AMERICAN
EME7 MINES. INC.("
By: \
FOR WM. FRED WALKER nn�
6�/vv
�✓

0
RECEIVED
:4u I : r n
l _
DOUGLAS G. S LE
JAMES P. ASH �I� of Land Re$D�rce$
JOHN D. GREENE
RUSSELL W. CHAPMAN. JR.
HBURN, GREENE S, CHAPMAN, P.A.
ATTORNEYS AT LAW
320 W. BROAD STREET
P.O. BOX I I o8
ESVILLE, NORTH CAROLINA 28687-1 108
Mr. James D. Simons, PG, PE
NCDENR
Division of Land Resources
1612 Mail Service Center
Raleigh, NC 27699-1612
August 9, 2005
a
TELEPHONE [phone]C
FAX [phone]
Re: North American Emerald Mines, Inc. (Permit No. 02-06)
Dear Mr. Simons:
I enclose additional information which I have received
from North American Emerald Mines, Inc., today. I
attempted twice today to call Ms. LaBeaux have
of the office on both occasions. only to find her out
DGE:lbj
Enclosures
CC: Mr. Bill Duncan
z'
re-tll
Dough G. Eisele

N—R—E—M FRX NO. : 92e-635-7090
moo
Rug. 09 2005 10:24RM P1
Producing the Finest Quality Emeralds & Gemstones in North America
FAX COVER SHEET
TO: ,,, Cis e� 1, . Date: 9- e T
ATTENTION: /1s�a
FAX /'a �') f ;�- 97a 7 Total Pages Cent:
FROM: North American Emerald Mines, Inc.
FAX #: [phone] VOICE: 828 635-8080
Cj,�er i�i✓�r� Gc�2JP�lGSS d, � Q%>��y�p}�� �. �2e
�a�c,�ser i�{�✓�zs4on Czd�✓�ss�nc�%�- �/��`�s
�/�/ // �G9os� .dam �ic/��q � �,� ✓�lY
/�'i( ��fic--Zn
CONFIDENMALITY NOTICE- The information cm'taiz
constitutes information which belongs to North Amerir�
individual or entity names abovc. if you arc not the inf2a'C
disclosure, copying, distribution or the taking of any acti6i
this communication in error, picase immediately notify uS
Service.
to message, and in any accompanying documents,
i USi- This information is intended only for the use of the
'Irmation, you arc hereby notified that any
is information, is strictly prohibited. If you have received
return the original message above via the U.S. Postal
5.11 Dtmcart Lane 1 Rc1den1te, North Carolina 28636
Office: 828-635-g080 4 Fax- 828-635-7080

=ROM N—q—E—M
FlX NO. 828-635-7080 Cu: Bill Cuncan Page 2 of 2 2005-08.09 t3:02:30 (GM 1 1 qug. 09 2005.10: 24RM P2
It All a 9D
SEISM
10660 South Tryon street
Charlotte, NO 28273
800-351-83566
704-583-2525
Fac 704-583-100S
The Intemadonal Society of Explosive Engineers (ISEE) has e5ablished specific
guiderines on the proper installation of seismographs based on several U. S. Bureau of Mines
studies. (US Bureau of Mines RI 9506). These standards are accepted
seismograph monitoring. The guidelines state that the transducer ornatiornvide for
buried n the soil in orderto obtain an aocorate reading of the vibration. The ra should be
completed by the U. S. Bureau of Mines and the resulting vibration guidelines are based on
the fact that the vibration will be measured by a transducer spiked or buried in the soil.
Since vibration dissipates at a cormistertt rate with distance the vibration at the closest
structure would be less than the vibration recorded at the permanent saismograph. The rate
of dissipation can be calculated using regression formulas; and the vibration at a structure
further away than the seismograph can be verffied.
The follo and
questions in Mr. Simons' letter should be responded to by a. blasting expert or
compang by personal knowledgeable in previous blasting practices at North Amer can
Emerald Mines -
Item #1 Part B: Are eve any notations 6r the records vvft'7 your possession i7dlcating that
weather ccnc ttons or other arcumstancw that rmsyheve car sed the periodic
even when the blastng rreasurenw7ts were web within ft /or&? mmplairrts
Item#{2: Co diafeb/ast
any oftherecords note theoccurrenceofflyrockbeyondtheinarE area, or beyond the guarded areal Mere do theft note ft:e oceutrence fly Pock?
ltem#3: TheJu/y11,2005report acJmowledyesthat blasBfxJforihrsmineisdiffererrtfrom
be le
4uarnes and con�ructon. Affhough the total pofmdage of eViosiv�s per de/ayregcr d may
ss, e possibflify offly rack exists Mae guide%es for blast cor*7ernent are used for
bfas#ngin fhis case to prevent 8yrcf-� Offsite occLarences of flyrock haw- been alleged, Are
there additlenal p ecauhbns that can be used? Met are the addition/ precaL&ns?
Item #5: One of the concerns raised by yje neighbors is tl�e staltft effect OfhaWi 7g a blast
ye off w &cL t noSce. Met of warning notice is given before blas&V?
If you need further information on the vibration and air overpressure records, please call me,
Sincerely,
John Babcock
Sauls Seismic, Inc.

FROM : N—R—E—M
o: oil,'_vncer rage 1 of _ F_RX No. : 628-635-7080
qu9. 09 2005 10:25gM R3
10660 South Tryon Street
aeflotre, NC 28?73
SEISMIC, INC.
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28M6
RE: Request for infom-ation
NC State letter from July 19,-2005
Dear Mr, Hill,
800-351-8566
704-s3-252S
Fax [phone]L,V7$
I have reviewed Mr. Sirnons' (NC Division of Land Resources) letferto you concerning Sauk Seismic, Ine.'s first letter. I have prepared this letter addressing Mr. Simon's questions where
Saul$ Seismic, Inc. has the relevant information required.
Sauls Seismic, Inc. is a seismic consulting company addressing issues regarding vib.'ahon,
air overpressure, and damage claims resulting from vibration. A numberof the questions
given by Mr. Sinanons should be addressed by a blasting company with expertise in this
area. Additional questions are raised regarding the past history of blasting practices and
record keeping. These questions can only be answered by personal farrdi ar with the
Previous basting operation.SauLs Se'sr , Inc. was only involved in the rrpndoring and
review of the vibration and air overpressure results from the blasting.
The following questions from Mr. Simons' letter vAI be addressed by Sauls Seismic, Inc.
Item #l: Do af(records show r178t airbla,; S and gczxd vrbrationm have been wr7h$, the Grrvfs or &,e par '
The maximum vbrafion recorded at North American Emerald Mines since 2003 has
been 0.04 inch per second and a ma)drrum air overpressure of 130 Decibels, Overall, the
ground ribration has been goal to or less than 0-03 —a02 incur per second These Levels
are approximately less than 10% ofvfiat is allowed under North Carolina law_ In North
Carolina, state regulations follow the starriard USBM graph for vibration: the air overpressure
Nrtrit in North Carolina is 133 Decibels. The ground vibration and air overpressurs recorded at
North American Emerald Mines have consistently been well w 1hin North Carolina's•
requirements.
Item#4: The July11,2005,reportcorrGmsthatfhesevr 9raPhisrMwItedmuchcloser
to the blow ftaan fuze nearestof 4s -. strt etrra A concerrl has been rased ti7atilg ft the
seisrrrograph motrred a7 the soflis not as accurate as having fhe sexsm09raPh resting on a
rocklayer. Please let&*oftkehowYthereare adernatiUePiea7entsfortheseb7XVaAh Kbufd )'OLT can=Jtarrtpfease render a Proles/opmfon on this?

FROM : N4A-E-M FAX NO. : 828-635-7oeo Aug. 09 2905 10:2GAM P4
Au-PSt 9, 2005
Memo to Doug Eisele:
Reference NC DENR letter July 19,2005 and a telephone call from Mr_ James D. Simons
Friday August 5 and Monday August 8
I wish to respond to the items listed in NC DENR's letter of July 19, 2005 that have not
been addressed by Mr. Babcock of Sauls Seismic.
Item 1: Since taking over the company on July 11 , we have searched the files and have
not found any evidence that indicate that weather conditions or other circumstances may
have caused these periodic complaints. However we are aware that low cloud cover
increases the fibrations level of a blast. In the future it is our new policy to monitor all
weather conditions and try to choose the clearest weather patterns to do our blasting.
Item 2: No records in our posession indicate any occurrence of fly rock beyond the
permitted boundaries.
Item 3: We will pack lighter charges and use time -delayed blasting caps.
Item 5: We are not knowledgeable of the practices of the previous management,
however, going forward our practice will be to make a courtesy call to oui neighbors
thirty minutes prior to blasting.
James K. Iiill, Jr.

STATE OF NORTH CAROLINA
COUNTY OF ALEXANDER
WM. FRED WALKER, JR.,
Petitioner,
V.
N.C. DEPT. OF ENVIRONMENT
AND NATURAL RESOURCES,
Respondent.
IN THE OFFICE OF
ADMINIS'[RATIVE HEARINGS
04-EHR-2162
PETITIONER'S NOTICE OF
DEPOSI T [ON TO JAMES D. SIMONS
PLEASE TAKE NOTICE that Petitioner William Fred Walker, Jr., through counsel and
pursuant to Rule 30 of the North Carolina Rules of Civil Procedure, will take the deposition upon
oral examination of James D. Simons of Defendant N.C. Dept. of Environment and Natural
Resources. The deposition will betaken before an authorized officer at 9:00 a.m. on Thursday,
May 5, 2005 at the offices of Robinson, Bradshaw & Hinson, P.A., 101 North Tryon Street,
Suite 1900, Charlotte, North Carolina 28246. The deposition Nvill continue from day to day until
completed.
i
Pursuant to Rule 34of the North Carolina Rules of Civil Procedure, you are also required
to make available for inspection and copying all documents wliich were reviewed or relied upon
in preparing for this deposition.
[THE REMAINDER OF THIS PAGE IS LEFT BLANK :INTENTIONALLY]

This 14th day of April, 2005.
William W. Toole
N.C. Bar No. 16862
Robinson, Bradshaw & Hinson, P.A.
101 North Tryon Street, Suite 1900
Charlotte, NC 28249-1900
Direct Dial: [phone]
Direct Facsimile: [phone]
Email: wtooleOrbh.com
J ' 'fer F. Revelle
N.C. Bar No. 32896
Robinson, Bradshaw & Hinson, P.A.
101 North Tryon Street, Suite 1900
Charlotte, NC 28249-1900
Direct Dial: [phone]
Direct Facsimile: [phone]
Email: jrevellenaxbh.com
Attorneys for Wm. Fred Walker, Jr.

CERTIFICATE OF SERVICE
I hereby certify that the foregoing NOTICE OF DEPOSITION TO JAMES D. SIMONS
has been served upon each of the parties to this action by email and by depositing same in the
United States mail, postage prepaid, in an envelope(s) addressed as follows:
Anita LeVeaux
N.C. Department of Justice
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699
[e-mail]
This 14th day of April, 2005.
zfj -I -Tj
J of F. Revelle

STATE OF NORTH CAROLINA
COUNTY OF ALEXANDER
WM. FRED WALKER, JR.,
Petitioner,
V.
N.C. DEPT. OF ENVIRONMENT
AND NATURAL RESOURCES,
Respondent.
IN THE OFFICE OF
ADMINISTRATIVE HEARINGS
04-EHR-2162
PETITIONER'S RULE 30(B)(6) NOTICE
TO DEFENDANT
PLEASE TAKE NOTICE that Petitioner William Fred Walker, Jr. ("Petitioner"),
through counsel and pursuant to Rule 30(b)(6) of the North Carolina Rules of Civil Procedure,
will take the deposition upon oral examination of a representative or representatives of
Defendant N.C. Dept. of Environment and Natural Resources ("Defendant"). The deposition
will be taken before an authorized officer at 9:00 a.m. on Wednesday, May 4, 2005 at the offices
of Robinson, Bradshaw & Hinson, P.A., 101 North Tryon Street, Suite 1900, Charlotte, North
Carolina 28246. The deposition will continue from day to day until completed.
Pursuant to this Notice, Defendant shall designate one or more officers, directors,
managing agents, or other persons who consent to testify on its behalf as to matters known or
reasonably available to Defendant relating to the following matter:
Defendants' responses to Petitioner's Requests for Admission.
Pursuant to Rules 30(b)(6) and 34of the North Carolina Rules of Civil Procedure, you are
also required to make available for inspection and copying all documents which were reviewed
or relied upon by the 30(b)(6) designee in preparing for this deposition and all documents which
were reviewed in responding to Petitioner's Requests for Admission.

This 14a' day of April, 2005.
William W. Toole
N.C. Bar No. 16862
Robinson, Bradshaw & Hinson, P.A.
101 North Tryon Street, Suite 1900
Charlotte, NC 28249-1900
Direct Dial: [phone]
Direct Facsimile: [phone]
Email: [e-mail]
Jediif& F. Revelle
N.C. Bar No. 32896
Robinson, Bradshaw & Hinson, P.A.
101 North Tryon Street, Suite 1900
Charlotte, NC 28249-1900
Direct Dial: [phone]
Direct Facsimile: [phone]
Email: irevellenaxbh.com
Attorneys for Wm. Fred Walker, Jr.

CERTIFICATE OF SERVICE
I hereby certify that the foregoing RULE 30(B)(6) NOTICE TO DEFENDANT has been
served upon each of the parties to this action by email and by depositing same in the United States
mail, postage prepaid, in an envelope(s) addressed as follows:
Anita LeVeaux
N.C. Department of Justice
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699
[e-mail]
This 14th day of April, 2005.
i
1
Jenni r F. Pevelle

C O V E R FAX
To: Mell Nevils 919-
Floyd Williams 919-
From: Anita LeVeaux
Associate Attorney General
Subject: Wm. Fred Walker, Jr. v.
04 ERR 2162
Date: August 24, 2005
Pages; 3, including this cover
COMMENTS: Please see attached
From the Desk of-
C. Hope Young, Legal Assistant
North Carolina Depaltnmtt of Justice
Environmental Depamnot
9001 Mail service Center
Raleigh. NC 27699-90D1
[phone]
[phone]/Fax
[e-mail]
Tn'.J T7•TT Cn. h7 6nH QQJQ—QTI—FTF:XL34 N(1TI'1-:IS RNH-1 9 NgIHM

AUG. 23. 2005 1, �jM
NO. 519 P, I
ROBINSON BAADSHAW & HINSON
• :r
To:
Ms, Anita LeveOX
Location.
Attorney Generals Olmo
Telephone:
919/716-6971
Fa:
919/716-6766
From:
Wi1MiAm W. Toole
I
COMMiNTO.
Date: August 23, 2005 C1iantfAaatter: 115434.UUuli
Number of Pages (including this pne): )
❑ Original will NOT follow
[] Orhonal will follow by:
❑ Regular Mall 0 Overnight Mail ❑ Hind Delivery
THE EaoaMATM CM ITANM M TM TELECOPY MAY B6 PAIYILEGEP AND/Oil OONPIPLMCIAL AND M RUMM b ONLY POP, THE 118E Or TIM
M5W TO W Tf 0 ASiDn SM- A = rZAOEE OF TNIE t "W1 IS ?W TH6 ¢RffidIHIO aAmum 1Oa SUCH 32101Y ENT'S EMPLOYEE 01%
AOENT%, yOU An Muity NOTIPIEP NOT TO YBAU, PSTRIP M OR COPY TNb MATBF W ATf MIM NEIITTO WITHOUT THE Mal W`uTr
CONSENT op THH EE MLL B' yOU HAVE BKMM TIES ImUCWY IN milo►, nMa NOTIFY TTTE M.'OBk by COLL= 7ELEPROM CALL AND
aHttAW Tf60HYfiFIALTSLENPY TO uB HY MALL AAb wGWj 'BWMpP11®Y011 TOET)tq AAQURnO HMTA(HS. THANY.Yw
Attorneys at Law
Chadotta Wce:101 Nort1; Tryon Shoot, Suite 1900, Charlotte, NC 28246 Ph: 7M377.2536 Px: 704.37Bk000
South Carolina Mom 140 Bait Main Suael, Suito 420, P,O. ikoww 12070, hock Hill, 60 29731 Ph; 5033252900 Plc 803.325,2929
70'-1 T7•TT Cn n7 6nH oa)a-aT)-CTC-YPa nnTin7�c nniH7 9 NeiHm

N0. § 19 P. 2
RUG, 23, 200; 1 53PM
ROBINSON BRADSHAW & HINSON
DIMMM Dv L: 704.377.S373
1A WAM W- TOOL6 DIRt:C rW 704.S73.3973
CHARLOTTE OFFICE wroQLy(&RaH.COM
August 23, 2005
U-MMON wt.i A
Ma. Anita LeVeaux
N.C. Department of Justine
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699
Re; W9, Fred Walker, Jr. v. NC, Dapt. of Environment and Natural Resources, Case
No. 04-BER-2162
Dear Anita:
I have spoken to my cheats d eottfirmed that &DY will diamisa the petition in the
above•referonced matter with prOudile onoo the North American Emerald Mines perant is
rovisea to roftect that permitted blasting Ionia will be one quarter the power currently allowed
under tho permit, and that no blasting "I occur without a warning 30 minutes prior to a blast
discharge.
Thank you far your cfforta itulI this matter. Please let me know if you bolieve this
agreement needg to be reduoed Hmthet i writing, or if this let*agrcctnent will coffins.
Sincerely,
ROBLNSON, BRAD§R W & W NSON, P.A.
William W. Toole
WWT/spd
cc: Jennifer F. Revelle, Faq.
Ms, Dorothy Lewis Watkins
At, William Fred Walker, Jr.
C-4732811 !W4-0M11
Attorocys at Law
ChaTlottc Offim:101 NortltTryon Street, Suite 1900, Chulom,NC 29U6 Ph:704.377.2536 p& 704.37$.4000
youth Carchns Office: 140 East Main Street, Suite 620, P.O. Arawer 12070, Rock Hill, SC 20731 Ph: $03,225.2000 Px: 803.325.2929
en'J T 7 - T T Cn n7 SnH 001Q-0T1-F7F'XPJ Kin 1'17C finIH-I 4 N71Hm

September 2, 2005
Mr. Bill Duncan
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: Mining Permit 02-06
Blasting Concerns
Dear Mr. Duncan:
Thank you for your responses to my letter to your company dated July 19, 2005
concerning blasting at your mine.
The blasting records submitted to our office show that you are operating within the terms
of your mining permit, however our office is concerned about allegations made that
flyrock has been thrown on to the adjoining properties, and that blasting has damaged
neighboring structures.
To that end, I appreciate your willingness to discuss voluntary reduction in the blasting
permit conditions to help further resolve blasting concerns. Amendments that we have
discussed, while not exhaustive, include the following:
1. Condition 8A "Ground Vibration" — limit the maximum peak particle velocity to
one quarter (1/4) of the current permit condition. (Blasting records submitted to
us indicate that the maximum peak particle velocity has been 0.04 inch per
second, which is only 115 of the lowest maximum permit limit. Most of your
blasts have ranged less than that.)
2. Warning of any mine blasting will be given 30 minutes prior to blasting so that
the warning would be perceived at the structures currently occupied by Mr. Fred
Walker and Ms. Dorothy Watkins. We are open to discussing the nature of this
warning and are aware that such warning must not conflict with required Mine
Safety and Health Administration blasting warnings.
Again, as noted in our earlier discussion, I offer the above soley as guidance. Thank you
again for your proactive approach in this matter. We would like to hear back from you
has your earliest convenience. Please let me know if you have any questions.
Sincerely,
Jim Simons

C _0 V E R
5 H.__E..__........ T
FAX
To: Mell Nevils
919-733-2876
Jim Simon
919-715-8801
Floyd Williams
919-715-8801
From: Anita LeVeaux
Associate Attorney General
Subject: Wm. Fred Walker, Jr. v. DEN1t
04 > HR 2162
Date: September2,2005
Pages_ 3, including this cover sheets.
COMMENTS: Please see attached documents.
From the Desk of:
C. Hope Young, Legal Assimnt
North Carolina Veparim it of Justice
Euvironmeotal Department
9001 Mail service Center
Raleigh, NC 27699-9001
[phone]
[phone]lpax
hvounc(irncdoi.com
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R©L31NSUN iL3RAD5H.4W S.. HtNSON
FAX COVER SHEET
$ENt3T0- TELEPHONE NO. FAX NO.
ANITA LEVEAUX 9191716-5T66
FROM: WILL IAM W. TOOLE
COM
Date: August 31, 2005
Number of Pages (including this page):2
10 Ongbral will N0T fouoa
❑ Original WM follow by:
❑ Regalar Mail ❑ over
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RETURN TIV.OIUONALTELaCOPYT014414Y MAD.AND WE*1.1. REMBURn YOU FOR THE REQUIRED POSTAGE THANK YOU.
a
Attorneys 9 Law
ChtvlOtte 00m: 101 NoM Tryon St=t, Suite 1900, Chado m, NC 2V44 Ph: 704.377.2536 Fr 104.378.4000
South Carolina Office: 140 East Main Street, Suite 420, Rock MIT, South Gafolin t 29730 Ph: 8033a8,2900 Fx: 803325.2920
wwwsYH.com
ZO'd 95:8 S0, Z daS 99Z9-9TZ-6T6:XPJ NOIi2S QN13I'8 d31dm

RBH Law Firm 8/31/2005 2:54 PAGE 002/002 Fax Server
R05INSON BRADSHAW & HINSON
WILLA W. Tr LE DIRECT DIAL; 704.377.a373
CMARLDT py,.,pC DR= FAX: [phone]
[e-mail]
August 31, 2005
VIA OVERNIGHT DELIVERY
The Honorable James L. Conner,1
Administrative Law Judge
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, NC 27699-6714
Re: WM. Fred Walksn Jr. v.. N. C Dept ofEnvironmew and Natural Resoumzs, Case
No. 04-E[-It 2162
Dear Judge Conner:
This is to inform you that the patties have, subject to certain contingencies still under
investigation, agreed to a settlement m,principei ofthis matter. For this reason, by this letter the
patties jointly request that they be granted an extension of thirty days, through and including
October 6, 2005, to comply with the due dates in the various orders now pending before you.
We would propose to give you a status update on this matter no later than September 30, 2005,
Please let me know if you would like an order drafted to this effect.
Sincerely,
ROBINSON, BRADSHAW & HINSON, P.A.
William W. Toole
wwtttbm
cc: Anita LeVeaux, Esq.
Jennifer Revelle, Esq.
c-e4821v1184II - —
Attorneys at Law
Charlotte office: 101 North Tryon St., Spite 1900, Charlotte, NC 287,46 Ph: 704,377.2536 Fx: 704.378.4000
South Carolina Office: 140 MR Main SL, Suite 42% P.O. Drawer 12070, Rode HI II, SC 29731 Ph: 803.325.2900 W 803.325.2929
£0'd 95:8 S0, Z daS 99L9-9TZ-6T6:xeJ NOI103S GNU-1 8 2OiHm

FAX
S H E E T
To: Mel] Nevils
919-733-2876
Jim Simon
919-715-8801
Floyd Williams
919-715-8801
From: Anita LeVeaux
Associate Attorney General
Subject: Wm. Fred Walker, Jr. v. DENR
04 EHR 2162
Date: September 2, 2005
Pages: 3, including this cover sheets.
COMMENTS: Please see attached documents.
From the Desk of.
C. Hope Young, Legal Assistant
North Carolina Veparlmant of Justice
Elnimnmcmal Departwnl
9001 Mail Service Center
Raleigh, NC 27699.9001
[phone]
[phone]/rax
hvounaUhnedol.com
TO'd Ls:8 S0, L daS 9919-9TL-6T6:xPA NOILOS GNU] 8 d31UM

RSH Law Firm SJ31/2005 2:54 pAGE 001/002 Fax SerVer
ROBINSON iURADSFi.AW 6. HINSON
FAX COVER SHEET
SENDTO: TELEPHONE NO. FAX NO.
ANITA LEVEAUX 9197716-6766
FROM: WILLIAM W. TOOLE
COM
Date: August 31, 2005
Number of Pages (including this page); 2
QrigiUM W111 NOT f*110W
❑ OTigmal will follow by-,
n Re¢ular Mail ❑ Oven
THE INFORMATION CONTAMED IN TMS TELECOPY MAY BE PRIVILEGED ANDIOR CONFIDEN77AL AND IS DITDIDED ONLY FOR THE USE OF THE
PERSON TO WHOM m G .ADDRESSED. IF THa READER OF TIES MRSSAOE IS NOT 7HE RHMTW RECIPISK COOL SUCH REEMENT'S WOWYEE OR
AGH77'), VDU ARE HEREBY NOTTN NOT TO READ. DIS1711RU1'E OR COPY THE MATEWALS ATTACHRD HERRTO WITTIMIT THE PRIOR WRITTEN
OCEIRPHTOF THE SagDER. IF TOU HAVE RECEIVED TIM TEtd fy M ERROR, XEASR NOnPY THE SENDBR BY CAU= 7SE&HONE CALL AND
EETuRN YHE ORIOINALTELECOFYTO UsUY MAILAND WS*11 REIMBURSE YOU FOR THE REIAMEDPOSTAGL THANK YOU.
0
AU mM at Law
Charlotte Office' lot North Tryon Snat, Sluita 1900, Charlotte, NC 29246 Ph: T04.3773536 Fl 704.375.4000
South Carolina O(fiee: 140 East MAIO Street' SRIw 420, Rockth1l, South Gafoli4a 29730 Ph: S03.325.2900 Fx: 807.323.2929
www.thh.e0A1
ZO'd LS:8 S0, 6 daS 9919-9TZ-6T6:XPJ NOI103S QNU� 8 dlibM

RHH Law Firm 8/31/2005 2:54 PAGE 002/002 Fax server
ROBINSON BRADSHAW & HIN50N
DiRecr O AL.; 704.37 7.a373
WILuAm W. Io L.Z 0,,ecr FAxt 704.3rn77,3.3973
C J.PTm omae WT"[e-mail]
August 31, 2005
V><A oVERNIGIIT DELIVRR� r
The, Honorable James L. Conner, TI
Administrative Law judge
Office of Administrative Hearings
6714 Mail Service Center
Raleigh, NC 27699,6714
Re: WM Fred Walker, Jr. v.:MC Dept offm>ironmem and Natural Z7esdurCes, Case
No, 04-E M-2162
Dear Judge Conner:
This is to inform You that the parties have, subject to certain contingencies still under
investigation, agreed to a settlement in'prineipal of this matter• For this reason by this letter the
parties jointly request that they be granted an extension of thirty days, through ad including
the due dates in the various orders now pending before you
October 6, 2005, to comply with
Wo would propose to give you a status update ou this matter no later than September 30, 2005.
please let me know if you WOU14like au order drafted to this effect_
Sincerely,
ROEINSON, BRAD,SHAW & IIINSON, P.A.
William W. Toole
wwt/tbm
cc: .Anita LeVeaux, T sq.
Jennifer Revelle, Esq.
C-WO.2tvllsasa000t1 _.
AtlorneW at Law
Charlotte Oflicc: I a 1 North Tryon St., Suite 1900, Charlotte, NC 28M : 7M.31 . S 803 3257 4.37 4000 325,2929
South Carolina(Mice 140 Last Main SL, Suite 420, N•O, Drawer 12070, RAc
k Hill,
£0'd ZS:8 S0. Z daS 99Z9-9TZ-6T6:xP3 N0Ii:)3S QNH-I -8 d3ibM

SEP. 1. 2005 11:23AM
COVER
SHEET
To: Ax&,a iabeaux _ Atty. Creneral,s ofEce
Fax #: 919,/715-8801
Subject: North American Emerald Mines, loc.
,Date: 911105
Pages: 3
COMMENTS:
N0, 374 P, 1
FAX
Additional information we have received since our last communication with you.
From the desk of,,,
Douglas G. Els®le
Eisele, Ashburn, Greene & Chapman, P,A.
P- C- sox'I tog
Statesville, NO 28687.11 os
704/M.a400
Fax: [phone]

FROM SEP. 1, 2005 11:24AM
FAX N0, : 828-635--7080
Aug. NO. 3745 ooP
2m p2
eA.U1 fib
SEISM INC.
North American Emerald Mines, Inc,
531 Duncan Lane
Hiddenite, North Carolina 28536
RE: Request for information
NC Stage letter from July 19' 2005
Dear Mr. Hill,
10660 South 7tyon Strcet
Charlotte, NC 28273
$00-351-8566
704-S83_2525
Fax [phone]
r- Simors'
I haveSeismic,r0 ed M S first letter,
ett (NCf Division
prepared this letter response to YOU concerning
Where SaUls Seismic, Inc. has the relevant information required.
ing Mr_ Simon'S questions
Sauls Seismic, Inc. Is a seismic consulting company addressing Issues regarding vibration,
air overpressure, and damage claims resulting from vibration. A number of the questions
given by Mr, Simmons should be addressed by a blasting cempany with a the questions
in this
area- Additional questions are raised regarding the past history of blasting practices and
record keopirVg. These questions c�Ore
nly be answered by personal familiar wi9fi the
previous Was,
operation, Souls mcInc. waonly involvedn the mon toting andreview of the vibraton andairoverpresults t}nm the blast ng,
The following questions from Mr. Simons' letter will be addressed by Sauls Seismic, Inc_
Item #1: Do
an recoms show fhat afrblasts antl ground vibrations have bean within the fimrts
of The permit
The rnaximum vibration recorded at North American Emerald Mines since 2003 has
been 0.04 Inch per second and s maximum air overpressure of 130 Decibels.overall the
ground vibration has been less 0.03 - 0.02 inch per second. In North Carolina, state
regulations follow the standard US6N1 graph for vibration,- the air overpressure limit in a North
Carolina is 133 Decibels. The ground vibration and air overpressure at North
American Emerald Mines have consistently been well within North Carolina recordedrequirements-
item a4: The ,July 71, 2004 report confirms that the seismograph Is mounted much loser to
the blasting tnan the nearest oftsiie 51MCture. A concern has been raised that having the
seismograph mounted in the awl is not as accurate as having the seismograph resting on a
rock layer. Please letThis o>Tice howif fhem are alternative placements for the r smo
Would yourconsultant please render a professional opfnion l a Phis?
The International Society of Explosive Engineers fSt" g�ph
guidelines on the proper installation of seismo ra has established specific
studies, (US $611u of Mines R1850 g Phs based on several U. S. Bureau Of Those �ndards are accepted nationwide for Mines

`01`SIP. 1.2005 11:24AM
SEISMIC, INC.
FnX N0. : 828-635-7080
10660 SouLh Tryon Street
Charlotte, NC 28273
Aug. NO. 3745 aeP. 3m m
SOO-351-5566
704-583-2515
Fax 704-583-rooS
seismograph monitoring. The guidelines state that the transducer or geophone should be
buried in the soil In order to obtain an accurate reading of the vibration. The studies
completed by the U. S. Bureau of Mines and the resulting vibration guidelines are based on
the fact that the vibration will be measured by a transducerspiked or buried in the soil.
Since vibration dissipates at a Consistent rate with distance, the vibration at the closest
structure would be less than the vibration recorded at the permanent seismograph, The rate
of dissipation can be calculated using regression formulas; and the vibration at a structure
further away than the seismograph can be verified,
The following questions in Mr. Simons' letter should be responded to by a blasting expert or
company and by personnel knowieLdgeable in previous blasting
Emerald Minces, practices at North American
item #1 Part H ^ Are there any notations in the reco
thrds wrlhin yourpossesstnn indicatinthat
weather conditions orother circumstances that may have caused the periodlie g
complaints,
even when the blasting measurements were well withln the limits?
1/ ATHER COND/T/O1VS SHOULS BE NOTED ON THE 6LAST/NG REPORT
ltam #2: DO any of the records note the occurrence of fly rock beyond the immediate blast
area, orbeyond the guarded area?Where do Me records note the occurrence of fly rock?
THE BLASTING RECORDS SHOULD HAVEA COMMENT SECTION. ANYFLY ROCK
INCIDENT SHOULD BE NOTED IN THIS SECTION
Item i#3: The July 11, 2LI05 report acknowledges that blasting for this mine is dlf&m t from
quarries and construction. Although the total poundage Ofexplosives perdelay regerifed may
be less, the pass/bdrty oftly rock exists What guidelines fornt are
used for
blast confineme
blasting in this case to prevent fly rock? Otfsife occurrences of fly rock have been alleged, Are
there addllional precautions that can be used? What are the additnal precautions?
THE BLASTER WOULD BE THE PERSON TO ANSWER THIS QUESTION.
Item #5: One Of the concerns raised by the neighbors is the starNing eft et of having a blast
go off withoutnOfrCe. What kind of wam/ng notice is given befots blasting?
THE SLgSTEi4 WOULD BE THEPERSON TOANSWER THIS QUESTION.
Sincerely,
John Babcock
Sauls seismic, Inc.

O V E R
FAX0 LiZT 9-- 1
To: Mell Nevils 919-
Floyd Williams 919-
From: Anita LeVeaux
Associate Attorney General
Subject: Wm. Fred Walker, Jr, v.
04 ERR 2162
Date: August 24, 2005
Pages: 3, including this cover
COMMENTS- Please see attached
From the Desk of-
C. Hope Young, 14911 Assistant
North Carolina Departmcnt offutice
Environmental Depa=cnt
9001 Mail Service Center
Raleigh. NC 27699-9001
[phone]
[phone]/Fax
hvoane(r4ncAni a,m
TO"d TZ:TT SOr vZ 6nH 9919-91L-6T6:Xe3 NOIIDS GNUI '8 ?31Hm

RUG. 29. 2005 1:52PM
ROSINSON BRADSHAW & HINSON
To: Ms. Anita Leveguz
Location: Attorney General's OfIlee
Telephono: 919/716-6971
F": 919/716.6766
From: William W.
COMMENTS:
Date: August 23, 2005
Number ofPages (including this page):
W➢IlNOT follow
will follow by.,
lar Man
NO, 519 P, I
CliantUatter: 15484.00011
THE INFORMATM CCNUNM IN THIS TELECOPY HAY RB FIOYINOED AN4101 C0101MMAL Mo 2 W M M ONLY FOR TNB UEE OF THE
P11190N TO WlO IT IS AM FARM. W THE REARM OF THM sMU W110 ROT THE D FENDoo PAWIIM (UK SUCH REOIPRINVS BMPLOYFE OR
AGENT), YW ARE M LERY NOTIFIED NOT TO READ, D1aT*LITE OF COTY T1t6 MATBsw.8 ATTACKED haaaTO WITHMT TAX DRfaa WRITTEN
CONSENT 0P TAe 8IDiOHB. IF YOU NAYS RECEIVED TFll1 "IL1COPf IN ERROR, PMU N7M TAM MDEA BY COLLECT THLEPHONA CALL AND
>!e'LURN TiW ORXiWAL TELRGO]ry TO VERYNAIL MTf Wa W LL'RWMpUR�Y011 TOILYMARiQUDIED TDETA[Et, TRANK YOU.
AttornM at Law
Glarlatte OA1ce:10114ortt Tryon Stmot, Suite 19001 Charlotts, NC U2.46 Ph; 704.377.2536 Fx: 704.376.4000
South Carolina oMea: 140 SRut Main Street, Suits 420, P,C, Drawer 12070, Bock M1, SC 29731 Ph; 803.325MOD Plc: 803.323,2929
N 'd TL:TT S0, v6 End 996-9TL-6T6:XP3 NOI133S (INd-1 8 d31UM

AUG. 23, 2005 1:53PM NO. 519 P. 2
ROBINSON BRADSHAW & HINSON
WILLIAM W. 7DpLE DIAEOY DW.: 704,377.9373
CHARLOTTE QrFICF DIRear FAul 704.373.397%
[e-mail]
Augaet 23, 2005
Me. Anita LeVeaux
N.C. Department of Justice
Envirotunental Division
9003 Mail Service Center
Raleigh, NC 27699
Re: W9, Fred Walker, Jr. V. M. C. Dept. of Bnvtronment and Natural Raeources, Case
No. 04-EM-2162
Dear Anita:
I have spoken to my clients d cotlfirtrled that they will dismiss the petition in the
above -referenced matter with ptcW1 a ones the North American Emerald Mines permit is
reviecd to roilact that permitted blasting levels will be one quarter the power currently allowed
under the permit, and that nu blasting ihall occur without a warning 30 minutes prior to a blast
disohargc.
Thank you for your efforts m this matter. please let me knew if yvu bolieve this
agreement needs to be reduced t9lrtltor i writing, or if this letter agrooment Will eUfT1Ce.
Sincerely,
ROBINSON,
William W. Toole
WWT/spd
cc: Jennifer F. R,evelle, Fsq.
Ms, Dorothy Lewis Watkins
I& William Fred Walker, Jr,
C•947329v1 1M4.00011
& MNSON, P.A.
Attomcya at Law
Charlotte office: 101 Noah Tryon Street, Suite 1000, Charlotte, NC 28246 Ph: 704377.2536 h'x: 70078,4000
South Carolina Office: 140 Baat Main Street, Suite 420, P.O. Arawer 12070, Rock Hill, SC 20731 P6: 803,126.2000 Px: 803.326I=
£0'd TZ:TT so, bZ End 99Z9-91Z-6T6:XPd NOI 33S QNHI ^ d31Hm

! --
0
RECEIVED
AUG 15 2QuIJ
DOUGLAS G. IS LE
JAMES P. AS„e HN of Land Resources
JOHN D. GREENE
RUSSELL W. CHAPMAN, JR.
HBURN, GREENE & CHAPMAN, P.A.
ATTORNEYS AT LAW
320 W. BROAD STREET
P.O. Box I I o8
ESVILLE, NORTH CAROLINA 28687-1 108
Mr, James D. Simons, PG, PE
NCDENR
Division of Land Resources
1612 Mail Service Center
Raleigh, NC 27699-1612
August 9, 2005
Re: North American Emerald Mines, Inc
Dear Mr. Simons:
TELEPHONE [phone]C
FAX [phone]
(Permit No. 02-06)
I enclose additional information which I have received
from North American Emerald Mines, Inc., today. I have
attempted twice today to call Ms. LaBeaux, only to find her out
of the office on both occasions.
DGE:lbj
Enclosures
CC: Mr. Bill Duncan
Sinc re y,
Dougl G. Eisele

N—R—E—M
FRX NO. : 828-635-7080
Producing the Finest Quality Emeralds & Gemstones in North America
FAX COVER SHEET
o
ATTENTION:
Date:
Rug. 09 2005 10:24RM
,f)- 9- 4s
FAX A#47A 7 Total Pages Sent:
FROM: North American Emerald Mines, Inc.
FAX #: [phone]
Cjt�2r /�Y�U 1.�2JPilGS
�a�2r i�><oY�t4o�
VOICE: 828 635-8080
�7y . ��yy�on �n � � i� Il' /ehkr , A
/� GemuetG SLiS.5 i%d,WiAP9, �4�
C}5 6'�-Jezlz75 c Aeezj @rr/-7'n' �s zeA e- dhew7O
'�q'w '>'V.nc'an
CONFIDENTIALITY NOTICE• The information con
constitut-s information which belongs to North Amerie
individual or entity names abova, if you are not the int
disclosure, copying, distribution or the talcing of any ae
this communication in error, please immediately notify
service.
to message, and in any accompanying documents,
R This information is intended only for the use of the
is information, you arc hereby norified that any
is information, is strictly prohibited. If you have received
rctum the origival message above via the U.S. postal
531 Duncan Lane i Rddenite, North Carolina 28636
Office: 828-635-9080 4 Fax: $28-635-7080
P1

FRO,"1 : N—R—E—M
n: om ,_rt�ncen rage i of t FRX NO. : 82B-635-7080
Rug. 09 2005 10:25RM P3
SAW
SEISMIC, INC.
North American Emerald Mines, Inc.
S31 Duncan Lame
Hiddenite, North Carolina 28M6
RE: Request for information
NC State letter from July 18,2006
Dear Mr, Hill,
10660 South'rryon Street
C badotre, NC 28273
800-357-5566
70A-583-3525
FaX [phone]
I have reviewed Mr. Simons' (NC Division of Land Resources) letterto you concerning Sauk
Seismic, Ins.'s frst Ietter. I have prepared this letter addressing Mr. Simon's questions where
Saul$ Seismic, Inc. has the relevant information required.
Sauls Seismic, Inc. is a seismic consulting company addressing issues regarding vibration,
airoverpressure, and damage claims resulting fromvibration. A numberof the questions
given by Mr. Sing , ns should be addressed by a blasting company with expertise in this
area. Additional questions are raised regarding the past history of besting practices and
record keeping, These questions can only be answered by personal familiar with the
previous blasting operation. Snub Seismic, Inc. was only involved in the monitoring and
review of the vibration and air overpressure results from the blasting.
The following questions from Mr, Simons letter will be addressed by Sauls Seismic, Inc.
Item #1: Co ail records show that afrblasts and grormd vrbiabi2m have been wfllmr the Gnats
Of mho pet,rip
The maximum vibration recorded at North American Emerald Mines since 2003 has
been 0.04 inch per second and a maximum air overpressure of 130 Decibels. Overall the
ground ,vibration has been equal to or less than 0.03 —0.02 inch per second_ These levels
are approximately less than 10% ofwhat is allowed udder North Carolina law. In North
Carolina, state regulations follow the standard USBM graph for vibration; the air overpressure
limit in North Carolina is 133 Decibels. The ground vibration and air overpressure recorded at
North American Emerald Mines have consistently been well wMn North Carolina's
requirements.
Item #d: The July 11, 2005 report corAms that the sehrmgaprr is mprmted much closer to
Me blestfng &An the nearest of k-9 strr efura A COMem has been raised thathavlrxl the
Wzrr)oTap9 mounted at the,Wis rrotas accraate as harmrg the sesmograph resting on a
rock layer P/ease iltfhi's ol&e how ythere are ager?x t e pfacen7eris mfor#* se Sbi7g7aph
Muld yord cormihb- t please tender a profesatonai opbtion on this?

_RC N—A—E—M
To; Bill Duncan Page 2 of 2
SEISMIC, INC.
FAX NO. : 82e-635-70eo
2005-08.09 13:02:30 (UM 1 )
10660 South Tryon Street
Charlotte, NC 28273
Aug. 09 2005 10:24AM P2
'VV I-V I . i I.
800-351-8566
704_S33.25_5
Fax [phone]
The International Society of Explosive Engineers (]SEE) has established specific
guidelines on the proper installation of seismographs based on several U. S. Bureau of Wines
studies, (US Bureau of Mines RI 85M. These standards are accepted nationwide for
seismograph monitoring. The guidelines state that the transducer or geophone should be
buried in the soil in orderto obtain an accurate reading of the vibration. The research
completed by the U. S. Bureau of Mines and the resulting vibration guidelines are based on
the fact that the vibration will be measured by a transducer spiked or buried in the soil.
Since vibration dissipates at a consistent rate with distance, the vibration at the closest
structure would be less than the vibration recorded at the permanent seismograph. The rate
of dissipation can be calculated using regression formulas; and the vibration at a structure
further away than the seismograph can be verified.
The following questions in Mr. Simons' letter should be responded to by a blasting expert or
company and by Personal knowledgeable in previous blasting practices at North American
Emerald Mines.
Item ;lit Part B: Are Naere any notsVons in the records within yourpossess ion indicating that
weather condraons or other ofrcurnstances Neat may have caused the periodic compfabrfs,
even when the blasting rmasuremgrft were weB within N7e /vrrLs?
Item *2: Do any of the retards note the occufrence of fly rock beyond the ffranediate blast
area, or beyond 67e guarded area? Where do Nre records note dne 0=ffenee of fry rock?
Item #i3: The July 11, 2005 report acknowledges that bfasft forfts mine is difterentfrorn
cxraff es and construction. A&VUgh Nye total potmdage of 8Vfcsives per delay required may
be lass, N7e possJbflfy offlyrock exfsfs What guidelines forb/ast corlinement are used for
blastingln ffris case to Preventflyrock? Oftsife occurrences offlyrockhaw been alleged Are
there addllfanaf preauNons finat can be used? What are the addldonal precautions?
Item 45: One of the concerns talsed by fhe neighbors is fhe statffxg eflect orhaving a blast
go off wlihout notice. Whatkirxf of warning notice is given before blasting?
If you need further information on the vibration and air overpressure records, please call me.
Sincerely,
John Babcock
Sauls Seismic, Inc.

FRW : N-A-E-M FAX NO. : 929-635-7oeo
Aug. 09 2005 10:26RM
August 9, 2005
Memo to Doug Eisele:
Reference NC DENR letter July 19,2005 and a telephone call from Mr. James D. Simons
Friday August 5 and Monday August 8
I wish to respond to the items listed in NC DENR's letter of July 19, 2005 that have not
been addressed by Mr. Babcock of Sauls Seismic.
Item 1: Since tatting over the company on July 11 , we have searched the files and have
not found any evidence that indicate that weather conditions or other circumstances may
have caused these periodic complaints. However we are aware that low cloud cover
increases the fibrations level of a blast. In the future it is our new policy to monitor all
weather conditions and try to choose the clearest weather patterns to do our blasting.
Item 2: No records in our posession indicate any occurrence of fly rock beyond the
permitted boundaries.
Item 3: We will pack lighter charges and use time -delayed blasting caps.
Item 5: We are not knowledgeable of the practices of the previous management,
however, going forward our practice will be to make a courtesy call to our neighbors
thirty minutes prior to blasting.
Janies K. dill, Jr.
P4

RECEIVED
AUG V � 200ti
Div of Land
unneN
1 oy
'$ aF
to of North Carolina
ROY COOPER Department of Justice
ATrORNCYGENL'RAL 9001 Mail Service Center
RALEIGH, NORTH CAROLINA
27699-900 r
July 29, 2005
VIA FACSIMILE AND U.S. MAIL
William W. Toole
Robinson, Bradshaw & Hinson, PA
101 North Tryon Street, Suite 1900
Charlotte, NC 28246
Re: Walker v. NC DENR
Case No. 04 EHR 2162
Dear Mr. Toole:
Reply to:
Anita LeVeaux
Assistant Attomey General
Environmental Division
Tel: [phone]
Fax: [phone]
As per your request by letter dated July 22, 2005 and consistent with N.C. Gen. Stat.
§ 132-1.l(a), enclosed please find a copy of all correspondence between NAEM and DENR since
June 23, 2005.
Please note these documents are available to you from our client. Requests such as these
can and probably should be made directly to the client.
Please feel free to call if you have any questions or need anything further.
Sincerely,
Anita LeVeaux
Assistant Attorney General
AL/md
Enclosures
cc: James D. Simons, Director, Division of Land Resources
Floyd Williams, State Mining Specialist

A"xit-A
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Land Resources
James D. Simons, P.G., P.E. Michael F. Easley, Governor
Director and State Geologist William G. Ross Jr., Secretary
July 19, 2005
Certified Mail
Return Receiot Requested
7003 1010 0003 5645 1457
Mr. James R. Hill, Chairman
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: North American Emerald Mine (Permit No. 02-06)
Dear Mr. Hill:
We have received a copy of a report dated July 11, 2005 from Sauls Seismic, Inc. in
response to my letter of June 24, 2005 to Mr. James Summers. However, some issues
remain outstanding.
From our telephone conference call to Mr. Summers on June 22, 2005, we understand
that you may no longer have all of the blasting records for blasts conducted under your
management. However, we request the following clarifications or additional information.
1. Do all records show that air blasts and ground vibrations have been within the
limits of the permit? Please set out the limits and actual levels of the air blasts
and vibrations. Overall, were the blasts consistently well within the limits (for
example average of 50% of the limit, etc., barely within the limits, or scattered
within the entire range? Are there any notations in the records within your
possession indicating that weather conditions or other circumstances that may
have caused the periodic complaints, even when the blasting measurements were
well within the limits?
2. Do any of the records note the occurrence of flyrock beyond the immediate blast
area, or beyond the guarded area? Where do the records note the occurrence of
flyrock?
3. The July 11, 2005 report acknowledges that blasting for this mine is different
from quarries and construction. Although the total poundage of explosives per
delay required may be less, the possibility of flyrock exists. What guidelines for
blast confinement are used for blasting in this case to prevent flyrock? Offsite
Geological Survey • Land Quality • Geodetic Survey
Division of Land Resources • 1612 Mail Service Center, Raleigh, North Carolina 27699-1612
512 North Salisbury Street, Raleigh, North Carolina 27604
919-733-38331 FAX: [phone] Internet: www.dlr.enr. state.nc.usldlr.htm
An Equal Opportunity 1 Affirmative Action Employer- 50% Recycled 110% Post Consumer Paper

Mr. Hill
July 19, 2005
Page 2
occurrences of flyrock have been alleged. Are there additional precautions that
can be used? What are the additional precautions?
4. The July 11, 2005 report confirms that the seismograph is mounted much closer to
the blasting than the nearest offsite structure. A concern has been raised that
having the seismograph mounted in the soil is not as accurate as having the
seismograph resting on a rock layer. Please let this office know if there are
alternative placements for the seismograph. Would your consultant please render
a professional opinion on this?
5. One of the concerns raised by the neighbors is the startling effect of having a blast
go off without notice. What kind of warning notice is given before blasting?
Please contact Floyd Williams or me if you have any questions. We would appreciate a
response within 10 days of receipt of this letter. Thank you for your cooperation.
D. Simons, PG, PE
cc: Mr. Steve Allred, CPESC
Mr. Floyd Williams, PG
Ms. Anita Leveaux
Mr. Roger Reeder

SEISMIC, INC.
July 11, 2005
1827 FOWERS FERRY :CAD
BLDG 24—SUITE 100
A MANTA, GA 30339
At. James R. Summers, PresidendCEO
North American Emerald Mines, Inc.
531 Duncan .Lane
Hiddenite, North Carolina 28636
RE: North American Emerald ,dine (Permit No. 02-06)
Review of Blasting Records, Blasting Procedures,
Blasting Requirements and Vibration Monitoring
Dear Mr. Summers:
.nr r..a: �[e-mail]
Per your request I have reviewed North American Emerald Nlines' BlaSKEfj Pecor._.s, Procedures; Blasting Requirements and Vibration Mcnitoring at Permit No. 0?-06. T"<zr: n:su1's
are described below.
Blastine Records
The North American Emerald Mines' Blasting Records were feurd to b.- in order s:.. ;ulr a.:::.;; necessary information needed for any type of post blast evaluation. ; he infomaticr_ given ✓en i. trz blasting records are accurate and consistent with the 7?e blasting conducted at this
Blasting Procedures
The blasting procedures at the North American Emerad Min: are j iene'd to lrr,:; :+ :Hate ai.
not break material. This is dir%rent from quarries:yp larger patterns using fewer pounds -of explosives per delay. Vae procedures used tc.r
storage, loading, warning signals, detonating and all clear signals, are consistent wit; :.rose -xsed
in other types of mining in North Carolina.
Btasdu2 Reauirements
There are no blasting requirement; that would exceec :hose required b,✓ t
agency.
Vibration Monitoring
North American Emerald Mine is now monitoring `ha gmum5 :b alDn and air or. e _; .;s• r= at a
distance of approximately 680 feet. This location is b,meen :h:; mining and :9e
structure. This off -site structure is approximately 300 feet froth the mirdng.::a przser
monitoring location is rrxore than adequate to -nsure the protection of the adjacent r;-ert43s.
tbih WAVJKAr ATTMNGA ctW2144N=WY C11M 11C I UTIUEr.' '1A .
2GS-392-2d66 Ti65�%2n66 30s8a5.2145 'k ''1 L•..�
JG�-504Gi66 S;�_:5J.4t66 61:-399.23bb06...4
iT[_.:Yk '+\ :+,:rr2Y•,Yy,,
Gb; •:'::f.I:,i

07/11/2005 11:07 82EB357080 NIEt
UIRS
SEISMIC, INC.
In reviewing the seismograph dsta, I found the readings to be accurate based on the given
distance and pmmds per delay. At the present time the vibration being produced by the Wasting
is very low. wth the type mining North American &herald .Mine is doiag and ss 1
will continue to do, I do not foresee any significant increase in these readings.: his bei rg the
case I feel sure the mine can operate at a lower blasti_-trg Limit, but without foil un&73taading of
the long range mining plan, I will not submit a recommendation at this time.
Please call if you have questions or you require fuYtber assistance in this natter.
Sincerely,
Sauls Seismic, Inc.
� a 6 ,Q
Roger feeder
9VOiGHWAL Alum -AC -A cVArMAl/YR1EW1 CNZO-17EFc kc"49E.R7 4C7mz-.q 1 C:4,11_D! , 2'-.`,p.ix:.

North
James D. Simons, P.G., P.E.
Director and State Geologist
A' -Iv
r
NCDENR
Carolina Department of Environment and Natural Resources
Division of Land Resources
Certified Mail
Return Receipt Requested
7003 1010 0003 5645 1440
June 24, 2005
7003 1010 0003 5645 1440
Mr. James R. Summers, President/CEO
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Carolina 28636
RE: North American Emerald Mine (Permit No. 02-06)
Dear Mr. Summers:
Michael F. Easley, Governor
William G. Ross Jr., Secretary
This office has received complaints regarding North American Emerald Mines (NAEM)
(Mining Permit # 02-06) mining activities in Alexander County.
Photographs have been submitted to our office showing flyrock lying on the adjoining
company. Flyrock beyond your guarded area is a violation of your peproperties, although we have not received any reported specific incidences of flyrock rmit. We are concerned
from your
that the somewhat different nature of your mining and blasting procedures at this mine dictate
properties.
that special blasting requirements are necessary to ensure the safety of neighboring persons and
Accordingly, please submit to this office within 30 days of receipt of this letter a report
prepared by a qualified blasting consultant to cover the following items:
1 • Review all available blasting records and company blasting procedures, and
blasting requirements for your company necessary to conduct mining
operations;
2• Submit a recommendation to this office of the lowest blasting limits under
which the mine can operate; and
3. Verify that the location of the seismograph provides the most accurate
readings to ensure the protection of the adjacent properties, or recommend a
more suitable location.
We ask that you give this matter your immediate attention. If you have any questions,
please feel free to contact this office.
S* rely,
ames D. Simons, PG, PE
cc: Doug Miller, PE
Floyd Williams, PG
Geological Survey • Land Quality • Geodetic Survey
Division of Land Resources • 1612 Mail Service Center, Raleigh, North Carolina 27699.1612
512 North Salisbury Street, Raleigh, North Carolina 27604
919-733-38331 FAX: [phone] Internet: wwwAr.enr. state.nc.usldlr.htm
An Equal Opportunity 1 Affirmative Action Employer - 50% Recycled 110% Post Consumer Paper

North Carolina
James D. Simons, PG, PE
Director and State Geologist
NCDENR
Department of Environment and Natural Resources
Division of Land Resources
Land Quality Section
July 6, 2005
Michael F. Easley, Governor
William G. Ross Jr., Secretary
Mr. Ronald J. Summers
North American Emerald Mines, Inc.
-
531 Duncan Lane ^ - •. _ ,
Hiddenite, North Carolina 28636 "
RE: North American Emerald Mine (Permit # 02-06)
Alexander County, N.C.
Dear Mr. Summers:
Attached is a copy of our report documenting an inspection recently conducted at a mine site for
which our records show you to be responsible. The inspection was performed under the
provisions of North Carolina General Statute 74-56 of the Mining Act of 1971,
Please review the report carefully and note any problems or deficiencies documented by the
inspector. Furthermore, please note any recommendations and/or specific corrective actions
required to correct any deficiencies that may be listed.
The responsibility for understanding and complying with the terms and conditions of your
mining permit and the Act lies with you.
Please do not hesitate to contact this office if you have any questions concerning the attached
report.
Your cooperation is appreciated.
Sincerely,
Cindy ;afrit
Assistant Regional Engineer
Attachment
/Cc: Floyd Williams, PG — Mining Specialist
CTG/ae

North Carolina Department of Environment and Natural Resources,
Division of Land Resources, Land Oualitv CPPt;n.,
MINE INSPECTION REPORT
(PERMITTED MINE)
1. Mine Name: North American Emerald Mine
2-06
3. Operator: North American Emerald Mines, Inc. 4. 2 Mining permit m: ntv:
5. Address: 531 Duncan Lane Hiddenite, NC 28636; Attn. Mr. J. Ronald Summers
Alexander
6. Permit expiration date: 3115110
7. Person(s) contacted at site: Ron Summers
8. Was mine operating at time of inspection? Yes: No: X 9. Pictures: Yes: X No:
10. Date last inspected: 4/18/05 11. Any mining since last inspection? Yes: X No:
12. Is the mine in compliance with the Operating Conditions of the permit? Yes: No: X
If no, explain:
O.C. #4A: Adequate mechanical barriers have not been provided beyond the overburden placed beyond the
berm of the mine area just west of silt basin No. 2. Silt fence has been installed along the edge of the
overburden since last inspection, but the device has not been properly installed.
13. Is the mine in compliance with the Reclamation Conditions of the permit? Yes: X No:
If no, explain:
14. Did any of the above deficiencies result in offsite damage? Yes: No: X If yes, describe the type and
severity of the damage:
15. Corrective measures needed and/or taken: 1.) Properly install the silt fence located at the edge of the
overburden placed beyond the berm of the mine area just west of silt basin No. 2 by trenching the lower 6" to 8"
of material below ground and backfilling with compacted soil.
16. Other recommendations and comments: During this inspection, an area of disturbance was noted on the
Sulphur Springs tract adjacent to the South Yadkin River in the form of a graded road. This disturbance on non -
bonded property would appear to be covered under exploration dig criteria pertinent to 3/9/05 memo in the mine
file of telephone call from Judy Wehner addressing this type of activity.
17. Is the Annual Reclamation Report +/- map accurate? Yes: No: (explain) Not reviewed: X
18. Follow-up inspection needed? Yes: X No: Proposed date:
19. Number of additional pages of inspection report: 0 20. Copy of report sent to operator: 7/1/05
b
Inspected by: Charles Gerstell Date: 6/29/05
Phone number: 704-663-1699

EISeELE, ASHBURN, GREENE & CHAPMAN, P.A.
RECEIVED
F �TTj 7T p`1 ATTORNEYS AT LAW
AUG
3 20 W. BROAD STREET
�� 671 P.O. BOX 1108
G �f(I I'�
DOUGLAS G. EI LE. STA ESVILLE, NORTH CAROLINA 28687-1 108
JAMES P. ASHB Iv Of Land
R
JOHN D. GREENE esources
RUSSELL W. CHAPMAN, JR. July 27, 2005
Mr. James D. Simons, PG, PE
NCDENR
Division of land Resources
1612 Mail Service Center
Raleigh, NC 27699-1612
TELEPHONE [phone]
FAX [phone]
Re: North American EIil6rald iiitles, Inc. (Permit No. 02-06)
Dear Mr. Simons:
The corporate management and employee staff at North
American Emerald Mines, Inc., has changed since your letter of
June 24, 2005. These matters are just now coming to the
attention of new management, whom I represent.
We have now discovered in the records Of NAEM the enclosed
documents from Sauls Seismic, Inc., which appear to address your
concerns. It appears to me that these documents refute the
contention that materials are being blasted form the NAEM site
to any adjoining or nearby property, or that any vibration has
occurred that could cause damages.
I am in a trial this week (July 25 - 29) in a case that
will probably take the entire week to try. In the meantime, I
will instruct my clients (new management) to investigate the
complaints you have received, and to be prepared to discuss
these matters in detail wii.n utc next week.
Please note your file to direct all further correspondence
involving this matter to me as attorp)ey for NAEM.
Sin4rely,
G
DGE:lbj
Enclosures
CC: Mr. Bill Duncan
Eisele

SEPA4 C,LC7
1827 PO'VERS FERRY ROAD
G
BLDG 24 -SURE 100
Ar1ANrA, A 30339
July 11, 2005
Nor. James R. SummersA, PresidenUCEO
531 Duncranan Lane Mines,
Emerald es, Inc.
Hiddenite, North Carolina 28636
RE: North American E
Review of BlastingEmerald Moe
Blasting Re u' Records, Blasting p No. 02-06)
q nemeProced
De Mr. S ,,its and Vibra±;°�, Monitors gs,
Dear*.
Summers:
770-952-2466
Fox 171952-1411
aflanio@saulsseismi
www.saulsseismicc,com, com
Per your request I have reviewed North
Procedures, Blasting RequiremeEmerald
are described American
below. nts and VibrationMonitoring Mines' Blasting
Blastin at
at Permit No 0206. Records Blasting
T�t�?�.Mih Am
necessary erlcanj;�Merald
blast' "nformat1On needed formany type of form.
mg records are accurate accurate and co evaluatio da y. 4Aej-- d
nsiste Post blast �
Blastin nt with the n The inform 'O��ainahe
Procedures type blasting conducted at this men m the
The blasting procedures at mine. not break material. T the North
larger his is differeerinntcan Emerald
Patterns n miewerPOunds of exp osi es quarries nstrucare dTi rial,
from Mine
storage, loading and co geed to loosen mate in other Warning Signals, deco Per delay. -The his tYPe blasting
types of mining in North Carolinting and all clear signal , Gedu allowstfor
az si res used for
Blastin R consistent with
There a'renuents those used
aze no blasting requirements that would e
agency.
xceed those required by the state regulatory
distance ofa merald Mine is now
PProximately 680 feet. This the g
stru°lure. This off. site strut his loca ' round vibration
monitoring
tore is approximately
is between the n and air location is more than adequate to ensure re 0 feet fro mining and the closest off.
ver e at a
quate to ensure the protect o hthe
e nnning. The site
Present
the adjacentproperties.
20�3392x2A 66 AL A"^Macn C�w��,,�
7769Sd2465 304�SVV 704_. Sp MNC
4-0466 � UBVAUKY
2466NAWvXfg IN
615-399-2366 RNOXVMT14
865-414-0I26 MURD, CN
614-77)d855

.OH(Ww
SEISMIC, INC.
Page 2
In reviewing the seismograph data, I found the readings to be accurate based on the given
distance and pounds per delay. At the present time the vibration being produced by the blasting
is very low. With the type mining North American Emerald Mine is doing and as I understand
will continue to do, I do not foresee any significant increase in these readings. This being the
case I feel sure the mine can operate at a lower blasting limit, but without full understanding of
the long range mining plan, I will not submit a recommendation at this time.
Please call if you have questions or you require further assistance in this matter.
Sincerely,
Sauls Seismic, Inc.
Roger Reeder
WMMGK4KAL AUAWkGA CHAPANWVat M CNARLMNC WUBVMKr NAMMIN KNOXVMBIN HUMON

SEISMIC, INC.
RON SUMMERS
NORTH AMERICAN EMERALD MINE
531 DUNCAN LANE
HIDDENITE, NC 28636
Re: Seismograph Records - December, 2004
HIDDENITE QUARRY
Job #NORHOI
BLAST RESULTS
10660 SOUTH TRYON STREET
CHARLOTTE, NC 28273 USA
704-583-2525
FAX [phone]
[e-mail]
www.saulsseismic.com
Seismic research during the past forty years has established criteria which relates the occurrence of structural damage to
certain levels of ground motion. Vibration damage criteria are now commonly expressed in terms of particle velocity, the
rate of ground movement at a given point produced by ground vibrations as they pass that point.
The ost
t at this time is that
sented
the
particle velocity (fordfrquenches less than 40 Hz) to 0.50inch/secondb for plaster ron lathe Mines,
ouses and 0.75limits
inch/second for
sheetrock construction. For frequencies greater than 40 Hz, a safe vibration limit is 2.0 inches/second. To reduce the
complaints, the air blast should not exceed 133 decibels.
GENERAL COMMENTS
A review of all blasting data indicates the highest readings for the month were 0,02 inch /second and 123 dBL.
..m. �� �••' ^"+`•`••" `+n+ _ r+uwel nvTc w1r . rro 11ww0110 nu . Whinvu, I C TN . 1 n111CV111 F
KV . NASH VILLE. TN

Sauls Seismic, Inc. SEISMOGRAPHIC RECORDING SYSTEM
CLIENT: NORTH AMERICAN EMERALD MINE, HIDDENITE QUARRY
STARTING DATE: 12/01/2004 ENDINGDATE: 12/31/2004
VIBRATION EVALUATION
This information is presented as per the U.S. Bureau of Mines Publication RI8507. Accordingly, any points above
the stair stepped curve have the potential for initiating damage due to vibration. (This is peak data only and may
not represent the full potential.)
P
A 10
R
T
I
C
LI
EP
S 1
V
E
L
O
C
I
T
y a.r
USBM RI8507 AND OSMRE Analysis
PEAK VELOCITY
1 10
100
Frequency, Xz
Air Blast Evaluation
-"0
UUMUY An OLASr - tm
123
- 1N

Sauls Seismic, Inc. SEISMOGRAPHIC RECORDING SYSTEM
POINTS PLOTTED ON VIBRATION GRAPH
CLIENT: NORTH AMERICAN EMERALD MINE, HIDDENITE QUARRY
Starting Date: 12/01/2004 Ending Date: 12/31/2004
Point Vibration Frequency Point Vibration
Label in/sec Hz Frequency
Label in/sec Hz
No points above minimums to plot
All seismic results less than .10 in/s , which do not appear on the graph, are listed below. The points were plotted in reverse order
so that point'A' would always be visible. Point'A' is the point with the lazgest vibration in the report. A maximum of 52 points
are plotted.
A 0.02 46.50

YEAR TO DATE VIBRATION REPORT (MAXIMUMS)
FROM 01/01/2004 TO 12/31/2004
BELOW ARE THE YEAR TO DATE SEISMIC TEST RESULTS FOR:
NORTH AMERICAN EMERALD MINE, HIDDENITE QUARRY
MAXIMUM
BLAST DATA
VIBRATION ('PS)
SEISMOGRAPH LOCATION
MAX LBS./
MAX.
DELAY
JAN
--_
FEB
--
14.00
MAR
-----
---
APR
---
20.00
MAY
0.02
OFF DUNCAN LANE
12.0016.00
JUN
0.02
OFF DUNCAN LANE
JUL
0.02
OFF DUNCAN LANE
.00
2.00
AUG
------
SEP
0.02
OFF DUNCAN LANE
OCT
0.04
OFF DUNCAN LANE
4.00
NOV
----
12.00
DEC
0.02
OFF DUNCAN LANE
---- -
YTD
0.04
OFF DUNCAN LANE
.00
24.00
AIR BLAST (dBL) SEISMOGRAPH LOCATION
MAX.
JAN _---
FEB -_-
►uo
MAY 127.00
OFF DUNCAN LANE
JUN 120.00
OFF DUNCAN LANE
JUL 130.00
OFF DUNCAN LANE
AUG ----
SEP 126.00
OFF DUNCAN LANE
OCT 127.00
OFF DUNCAN LANE
NOV ----
DEC 123.00
OFF DUNCAN LANE
YTD 130.00
OFF DUNCAN LANE
MAXIMUM
MAXIMUM
MAXIMUM
BLAST
FOR
EVENT
YEAR TO
EVENT
DATA
December
DATE
DATE
DATE
VIBRATION (IPS)
MAX.
0.02
12/22/2004
0.04
10/21/2004
AIR BLAST (dBL)
MAX.
123.00
12/22/2004
130.00
07/28/2004

BLASTING SEISMOGRAPH REPORT
CLIENT NORTH AMERICAN EMERALD MINE
OPERATION HIDDENITE QUARRY
The results of the Seismograph Test on the date and time shown, as recorded from the location given, are tabulated below.
Client No. : NORH01
Seismic Loc : OFF DUNCAN LANE
Blast Loc .
Recording No:
16201
Date 12/22/2004
Time: 11:35:00
Distance:
680.00 FT.
Max Lbs.
/ Delay:
4.00
Longitudinal
Transverse
Vertical
Maximum
Velocity (IN/SEC)
0.02
0.02
0.02
0.02
Frequency(Hz)
46.5
51.2
102.4
46.5
Peak AirBlast(dB)
123.00 dBL
44.1
(Hz) Scaling Factor:
340
Transducer Serial # :
3022
Microphone Serial #:
3022
Sets. Operator
JUDY BLACKBURN
Sets. Serial No
3022
Trigger Levels
0.03/110
Weather .
Comments: SHOT #53
Respectfully Submitted,
Sauls Seismic, Inc.
By: John Babcock

EISELE, ASHBURN, GREENE & CHAPMAN, P.A.
R�} Tr ATTORNEYS AT LAW
ECE, `J��'$O W. BROAD STREET
• +- P.O. Box 1108
DOUG LAS G. EISELE /yATEViL�C/^ N OF CARD LINA 28687-1 108
JAMES P. ASHBURN i J•�
JOHN D. GREENE W e p
RUSSELL W. CHAPMAN, JR. UIV dl Land Resource$
my 29, 2005
Mr. James D. Simons, PG, PE
NCDENR
Division of land Resources
1612 Mail Service Center
Raleigh, NC 27699-1612
TELEPHONE [phone]
FAX [phone]
Re: North American Emerald Mines, Inc. (Permit No. 02-06)
Dear Mr. Simons:
I enclose additional documents from Sauls Seismic, Inc.,
regarding North American Emerald Miens, Inc., in Hiddenite,
North Carolina. We are seeking information regarding responses
to other questions you raised in a letter
July 19, 2005. to my client dated
I was in trial from Monday through Thursday of this week,
and therefore had no opportunity to call you to discuss this
matter personally. I have attempted three times today to call
either you or Mr. Williams, but neither of you has been
available. I will therefore attempt to call you during the week
of August 1, 2005.
Sin e ely,
Doug s G. Eisele
DGE:lbj
Enclosures
cc: Mr. Bill Duncan

SEISMIC, INC.
RON SUMMERS
NORTH AMERICAN EMERALD
531 DUNCAN LANE
HIDDENITE, NC 28636
Re : Seismograph Records - May, v
HIDDENITE QUARRY
Job #NORHOI
BLAST RESULTS
704583-2525
10660 SOUTH TRYON STREET FAX [phone]
CHARLOTTE, NC 28273 USA [e-mail]
www.sauleselsmic.com
er'rn:�j, ]aIAkAoy — AAoty 200S
ox"3")i,, �-- i-Z-6618L
Seismic research during the past forty years has established criteria which relates the occurrence of structural damage to
certain levels of ground motion. Vibration damage criteria are now commonly expressed in terms of particle velocithe
rate of ground movement at a given point produced by ground vibrations as they pass that point. ty,
The most recognized vibration limit at this time is that presented by the U. S. Bureau of Mines, which limits the peak
Particle velocity (for frequencies less than 40 Hz) to 0.50 inch/second for plaster on lathe houses and 0.75 inch/second for
sheetrock construction. For frequencies greater than 40 Hz, a safe vibration limit is 2.0 inches/second. To reduce the
complaints, the air blast should not exceed 133 decibels.
GENERAL COMMENTS
A review of all blasting data indicates the highest readings for the month were 0.02 inch /second and 118 dBL.
BIRMINGHAM, AL • ATLANTA, GA a CHAPMANVILLE, WV 9 CHARLOTTE, NC • COLUMBUS, OH s KNOXVILLE, TN • LOUISVILLE, KY u NASHVILLE, TN

Sauls Seismic, Inc. SEISMOGRAPHIC RECORDING SYSTEM'
CLIENT: NORTH AMERICAN EMERALD MINE, HIDDENITE QUARRY
STARTINGDATE: 05/01/2005 ENDINGDATE: 05/31/2005
VIBRATION EVALUATION
This information is presented as per the U.S. Bureau of Mines Publication RI8507. Accordingly, any points above
the stair stepped curve have the potential for initiating damage due to vibration. (This is peak data only and may
not represent the full potential.)
P
A 10
R
T
I
C
LI
EP
S 1
V
E
L
O
C
I
T
Y 0.1
USBM RI8507 AND OSMRE .Analysis
PEAK VELOCITY
10 100
Frequency, Hz
Air Blast Evaluation
140
130
YAXWO AIR BLAST _ �
ne �
110
100

Sauls Seismic, Inc. SEISMOGRAPHIC RECORDING SYSTEM
POINTS PLOTTED ON VIBRATION GRAPH
CLIENT: NORTH AMERICAN EMERALD MINE, HIDDENITE QUARRY
Starting Date: 05/01/2005 Ending Date: 05/31/2005
Point Vibration Frequency Point Vibration Frequency
Label in/see RZ Label in/see Hz
No points above minimums to plot
All seismic results less than .10 in/s , which do not appear on the gaph, are listed below. The points were plotted in reverse order
so that point'A' would always be visible. Point'A' is the point with the largest vibration in the report. A maximum of 52 points
are plotted.
A . 0.02 51.20 B < 0.02 ------

YEAR TO DATE VIBRATION REPORT (MAXIMUMS)
FROM 01/01/2005 TO 05/31/2005
BELOW ARE THE YEAR TO DATE SEISMIC TEST RESULTS FOR:
NORTH AMERICAN EMERALD MINE, HIDDENITE QUARRY -
MAXIMUM
BLAST DATA
VIBRATION (IPS) SEISMOGRAPH LOCATION
MAX LBSJ
MAX.
DELAY
JAN
0.03
OFF DUNCAN LANE
5.00
FEB
0.03
OFF DUNCAN LANE
7.00
MAR
0.02
OFF DUNCAN LANE
5.00
APR
0.02
OFF DUNCAN LANE
8.00
MAY
0.02
OFF DUNCAN LANE
7.00
JUN
------
JUL
—
—
AUG
--
--
SEP
----
--
OCT
---
---
NOV
—
—
DEC
---
-----
YTD
0.03
OFF DUNCAN LANE
8.00
AIR BLAST (dBL)
SEISMOGRAPH LOCATION
MAX.
JAN 126.00
OFF DUNCAN LANE
FEB ----
MAR 110.00
OFF DUNCAN LANE
APR 124.00
OFF DUNCAN LANE
MAY 118.00
OFF DUNCAN LANE
JUN ----
JUL ---
AUG ----
SEP -----
OCT ,---
NOV ---
DEC —
YTD 126.00
OFF DUNCAN LANE
MAXIMUM
MAXIMUM
MAXIMUM
BLAST
FOR
EVENT
YEAR TO
EVENT
DATA
May
DATE
DATE
DATE
VIBRATION (IPS)
MAX.
0.02
05/24/2005
0.03
01/28/2005
AIR BLAST (dBL)
MAX.
118.00
05/241.2005
126.00
01/28/2005

BLASTING SEISMOGRAPH REPORT
CLIENT NORTH AMERICAN EMERALD MINE
OPERATION : HIDDENITE QUARRY
The results of the Seismograph Test on the date and time shown, as recorded from the location given, are tabulated below.
Client No. : NORHOI
Seismic Loc : OFF DUNCAN LANE
Blast Loc .
Date 05/05/2005
Distance: 680.00 FT.
Longitudinal
Velocity (IN/SEC) < 0.02
FrequencytHz) —
Peak AirBlast(dB) .
Transducer Serial #
Seis. Operator
Trigger Levels
Weather :
Comments : SHOT #11
Respectfully Submitted,
Sauls Seismic, Inc.
By: John Babcock
<110.00 dBL
3022
JURY BLACKBURN
0.02/110
Time:
Max Lbs. / Delay:
Transverse
< 0.02
Recording No: 19903
13:44:00
7.00
Vertical
< 0.02
Scaling Factor:
Microphone Serial #: 3022
Seis. Serial No 3022
Maximum
< 0.02
257

BLASTING SEISMOGRAPH REPORT
CLIENT NORTH AMERICAN EMERALD MINE
OPERATION : HIDDENITE QUARRY
The results of the Seismograph Test on the date and time shown, as recorded from the location given, are tabulated below.
Client No. : NORHOl Recording No: 19904
Seismic Loc : OFF DUNCAN LANE
Blast Loc .
Time: 15:57:00
Date 05/24/2005
5.00
680.00 FT.
Max Lbs. / Delay:
Distance:
Longitudinal
Transverse
Vertical Maximum
Velocity (IN/SEC) :
0.02
0.02
0.02 0.02
51.2
73.1
64.0 51.2
Frequency(Hz)
118.00 dBL
37.4
(HScalinz) g Factor: 304
Peak AirBlast(dB)
Microphone Serial #: 3022
Transducer Serial # :
3022
JUDY BLACKBURN
Seis. Serial No 3022
Seis.Operator
Trigger Levels
0.02/110
Weather .
Comments: SHOT #12
Respectfully Submitted,
sauls seismic, Inc.
By: John Babcock

SEISMIC, INC.
RON SUMMERS
NORTH AMERICAN EMERALD MINE
531 DUNCAN LANE
HIDDENITE, NC 28636
Re; Seismograph Records - April, 2005
HIDDENTTE QUARRY
Job #NORHOI
BLAST RESULTS
10660 SOUTH TRYON STREET
CHARLOTTE, NO 28273 USA
704-583.2525
FAX [phone]
[e-mail]
www.saulsselsmic.com
Seismic research during the past forty years has established criteria which relates the occurrence of structural damage to
certain levels of ground motion. Vibration damage criteria are now commonly expressed in terms of particle velocity, the
rate of ground movement at a given point produced by ground vibrations as they pass that point.
The most recognized vibration limit at this time is that presented by the U. S. Bureau of Mines, which limits the peak
particle velocity (for frequencies less than 40 Hz) to 0.50 inch/second for plaster on lathe houses and 0.75 inch/second for
sheetrock constriction. For frequencies greater than 40 Hz, a safe vibration limit is 2.0 inches/second. To reduce the
complaints, the air blast should not exceed 133 decibels.
GENERAL COMMENTS
A review of all blasting data indicates the highest readings for the month were 0.02 inch /second and 124 dBL.
RMINGHAM, AL 0 ATLANTA, GA s CHAPMANVILLE, WV ® CHARLOTTE, NC. COLUMBUS, OH • KNOXVILLE, TN a LOUISVILLE, KY • NASHVILLE, TN

Sauls Seismic, Inc. SEISMOGRAPHIC RECORDING SYSTEM
CLIENT: NORTH AMERICAN EMERALD MINE, IUDDENITE QUARRY
STARTING DATE: 04/01/2005 ENDING DATE: 04/30/2005
VIBRATION EVALUATION
This information is presented as per the U.S. Bureau of Mines Publication RI8507. Accordingly, any points above
the stair stepped curve have the potential for initiating damage due to vibration. (This is peak data only and may
not represent the fall potential.)
p
A Ao
R
T
I
C
LI
Ep
S t
V
E
L
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I
T
y 0.1
USBM RI8507 AND OSMRE Analysis
PEAK VELOCITY
t to
Frequency, Hz
Air Blast Evaluation
- 140
MAXIMUM AIR BLAST - Ib
124
- is

Sauls Seismic, Inc. SEISMOGRAPHIC RECORDING SYSTEM
POINTS PLOTTED ON VIBRATION GRAPH
CLIENT: NORTH AMERICAN EMERALD MINE, HIDDENITE QUARRY
Starting Date: 04/01/2005 Ending Date: 04/30/2005
Point Vibration Frequency Point Vibration Frequency Label in/sec Hz
Label in/sec Hz
No points above minimums to plot
All seismic results less than .10 in/s , which do not appear on the graph, are listed below. The points were plotted in reverse order
SO that point W would always be visible. Point W is the point with the largest vibration in the report. A maximum of 52 points
are plotted.
A 0.02 55.30 D 0.02
46.50
B
0.02 64.00 E 0.01
C 256.00
0.02 51.20

BLASTING SEISMOGRAPH REPORT
CLIENT NORTH AMERICAN EMERALD MINE
OPERATION : HIDDENITE QUARRY
The results of the Seismograph Test on the date and time shown, as recorded from the location given, are tabulated below.
Client No. NORH01
Recording No: 18818
Seismic Loc : OFF DUNCAN LANE
Blast Loc
Date 04/27/2005
Time: 15:25:00
Distance: 680.00 FT. Max Lbs. / Delay: 3.00
Longitudinal Transverse Vertical
Maximum
Velocity (IN/SEC)
0.02 0.02
Fre uenc 3.02 4.02
q y(IIz) 64.0 64.0
7.1 6.0
Peak AirBlast(dB) 111.00 dBL 37.9 Hz
( ) Scaling Factor: 393
Transducer Serial #
Seis. Operator
Trigger Levels
Weather .
Comments: SHOT #10
Respectfully Submitted,
Sauls Seismic, Inc.
By: John Babcock
3022
JUDY BLACKBURN
0.02/110
Microphone Serial #: 3022
Seis. Serial No 3022

YEAR TO DATE VIBRATION REPORT (MAXIMUMS)
FROM 01/01/2005 TO 04/30/2005
BELOW ARE THE YEAR TO DATE SEISMIC TEST RESULTS FOR:
NORTH AMERICAN EMERALD MINE, HIDDENTTE QUARRY
MAXIMUM
BLAST DATA
VIBRATION (IPS)
MAX.
JAN
0.03
FEB
0.03
MAR
0.02
APR
0.02
MAY
----
JUN
in
--
AUG
SEP
OCT
NOV
DEC
------
YID
0.03
AIR BLAST (dBL)
MAX.
JAN
126.00
FEB
---
MAR
110.00
APR
124.00
MAY
JUN
--
JUL
__--
AUG
SEP
--_
OCT
NOV
DEC
---
YTD
126.00
MAXIMUM
BLAST
DATA
VIBRATION (IPS)
MAX.
AIR BLAST (dBL)
MAX.
SEISMOGRAPH LOCATION
MAX LBS./
DELAY
OFF DUNCAN LANE
OFF DtJNCAN LANE
5.00
OFF DUNCAN LANE
7.00
OFF DUNCAN LANE
5.00
8.00
OFF DUNCAN LANE
—
8.00
SEISMOGRAPH LOCATION
OFF DUNCAN LANE
OFF DUNCAN LANE
OFF DUNCAN LANE
OFF DUNCAN LANE
MAXIMUM
FOR
EVENT
MAXIMUM
YEAR TO
April
DATE
DATE
EVENT
DATE
0.02
04/06/2005
0.03
01/28/2005
124.00
04/22/2005
126.00
01/28/2005

BLASTING SEISMOGRAPH REPORT
CLIENT NORTH AMERICAN EMERALD MINE
OPERATION : HIDDENITE QUARRY
The results of the Seismograph Test on the date and time shown, as recorded from the location given, are tabulated below.
Client No. NORHOI
Seismic Loc : OFF DUNCAN LANE
Blast Loc .
Date 04/06/2005
Distance: 680.00 FT.
Longitudinal
Velocity (IN/SEC) 0.01
Frequency(Hz) 170.7
Peak AirBlast(dB)
Transducer Serial # :
Seis. Operator
Trigger Levels
Weather :
Comments : SHOT #6
Respectfully Submitted,
Sauls Seismic, Inc.
By: John Babcock
116.00 dBL
3022
JUDY BLACKBURN
0.02/110
Time:
Max Lbs. / Delay:
Transverse
0.01
256.0
17.2 (Hz)
Recording No: 18814
14:11:00
3.00
Vertical
0.02
85.3
Scaling Factor:
Microphone Serial #: 3022
Seis. Serial No 3022
Maximum
0.02
85.3
393

BLASTING SEISMOGRAPH REPORT
CLIENT NORTH AMERICAN EMERALD MINE
OPERATION : HIDDENITE QUARRY
The results of the Seismograph Test on the date and time shown, as recorded from the location given, are tabulated below.
Client No. : NORHOI
Seismic Loc : OFF DUNCAN LANE
Blast Loc .
Date 04/08/2005
Distance: 680.00 FT.
Longitudinal
Velocity (IN/SEC) 0.01
Frequency(Hz) 256.0
Peak AirBlast(dB)
Transducer Serial #
Seis. Operator
Trigger Levels
Weather :
Comments; SHOT #7
Respectfully Submitted,
Sauls Seismic, Inc.
By: John Babcock
123.00 dBL
3022
JUDY BLACKBURN
0.02/110
Time:
Max Lbs. / Delay:
Transverse
0.00
0.0
48.9 (Hz)
Recording No: 18815
14:56:00
3.00
Vertical
0.01
256.0
Scaling Factor:
Microphone Serial #: 3022
Seis. Serial No 3022
Maximum
0.01
256.0
393

BLASTING SEISMOGRAPH REPORT
CLIENT NORTH AMERICAN EMERALD MINE
OPERATION : HIDDENITE QUARRY
The results of the Seismograph Test on the date and time shown, as recorded from the location given, are tabulated below.
Client No. : NORHOl
Seismic Loc : OFF DUNCAN LANE
Blast Loc :
Date 04/11/2005
Distance: 680.00 FT.
Longitudinal
Velocity (IN/SEC) 0.02
Frequency(Hz) 51.2
Peak AirBlast(dB)
Transducer Serial #
Seis. Operator
Trigger Levels
Weather :
Comments: SHOT #8
Respectfully Submitted,
Sauls Seismic, Inc.
By: John Babcock
108.00 dBL
3022
JUDY BLACKBURN
0.02/110
Time:
Max Lbs. / Delay:
Transverse
0.02
51.2
20.5 (Hz)
Recording No: 18816
15:25:00
6.00
Vertical
0.02
73.1
Scaling Factor:
Microphone Serial #: 3022
Seis. Serial No 3022
Maximum
0.02
51.2
278

BLASTING SEISMOGRAPH REPORT
CLIENT NORTH AMERICAN EMERALD MINE
OPERATION : HMDENITE QUARRY
The results of the Seismograph Test on the date and time shown,. as recorded from the location given, are tabulated below.
Client No. : NORHOI
Seismic Loc : OFF DUNCAN LANE
Blast Loc .
Date 04/22/2005
Distance: 680.00 FT.
Longitudinal
Velocity (IN/SEC) 0.02
Freguency(Hz) 46.5
Peak AirBlast(dB)
Transducer Serial # :
Seis. Operator
Trigger Levels
Weather .
Comments: SHOT #9
Respectfully Submitted,
SaulB Seismic, Inc.
By: John Babcock
124.00 dBL
3022
JURY BLACKBURN
0.02/110
Time:
Max Lbs. / Delay:
Transverse
0.02
73.1
53.1 (Hz)
Recording No: 18817
11:55:00
8.00
Vertical
0.02
73.1
Scaling Factor:
Microphone Serial #: 3022
Seis. Serial No 3022
Maximum
0.02
46.5
240

Paul 0
SEISMIC, INC.
RON SUMMERS
NORTH AMERICAN EMF.R Ar ri MINE
531 DUNCAN LANE
HIDDENITE, NC 28636
Re: Seismograph Records -March, 2005
HIDDENrl-E QUARRY
Job #NORHOI
BLAST RESULTS
704-583-2525
FAX [phone]
10660 SOUTH TRYON STREET ncarolina®saulsseismic.com
CHARLOTTE, NC 28273 USA www.saulssetsmic.com
Seismic research during the past forty years has established criteria which relates the occurrence of structural damage to
certain levels of ground motion. Vibration damage criteria are now commonly expressed in terns of particle velocity, the
rate of ground movement at a given point produced by ground vibrations as they pass that point.
The most recognized vibration limit at this time is that presented by the U. S. Bureau of Mines, which limits the peak
particle velocity (for frequencies less than 40 Hz) to 0.50 inchtsecond for plaster on lathe houses and 0.75 inch/second for
sheetrock construction. For frequencies greater than 40 Hz, a safe vibration limit is 2.0 inches/second. To reduce the
complaints, the air blast should not exceed 133 decibels.
GENERAL COMMENTS
A review of all blasting data indicates the highest readings for the month were 0.02 inch /second and 110 dBL.
BIRMINGHAM, AL a ATLANTA, GA 9 CHAPMANVILLE, WV a CHARLOTTE, NC + COLUMBUS, OH 9 KNOXVILLE, TN a LOUISVILLE, KY a NASHVILLE, TN

Souls Seismic, Inc. SEISMOGRAPHIC RECORDING SYSTEM
CLIENT: NORTH AMERICAN EMERALD MINE, HIDDENITE QUARRY
STARTING DATE: 03/01/2005 ENDING DATE: 03/31/2005
VIBRATION EVALUATION
This information is presented as per the U.S. Bureau of Mines Publication RI8507. Accordingly, any points above
the stair stepped curve have the potential for initiating damage due to vibration. (This is peak data only and may
not represent the full potential.)
P to
A
R
T
I
C
LI
Ep
S 1
V
E
L
O
C
I
T
Y 0.1
USBM RI8507 AND OSMRE Analysis
PEAK VELOCITY
1 to IOU
Frequency, FIz
Air Blast Evaluation
wD
Ib
In
MAXIMUM AIR BLAST
110 nD
00

Sauls Seismic, Inc. SEISMOGRAPHIC RECORDING SYSTEM
POINTS PLOTTED ON VIBRATION GRAPH
CLIENT: NORTH AMERICAN EMERALD MINE, HIDDENITE QUARRY
Starting Date: 03/01/2005 Ending Date: 03/31/2005
Point Vibration Frequency Point Vibration Frequency
Label in/see Hz Label in/sec Hz
No points above minimums to plot
All seismic results less than .10 in/s , which do not appear on the graph, are listed below. The points were plotted in reverse order
so that point'A' would always be visible. Point'A' is the point with the largest vibration in the report. A maximum of 52 points
are plotted.
A 0.02 56.90

YEAR TO DATE VIBRATION REPORT (MAXIMUMS)
FROM 01/01/2005 TO 03/31/2005
BELOW ARE THE YEAR TO DATE SEISMIC TEST RESULTS FOR:
NORTH AMERICAN EMERALD MINE, HIDDENITE QUARRY
MAXIMUM
Bi A5T DATA
MAX LBS./
VIBRATION (H'S)
MAX.
SEISMOGRAPH LOCATION
DELAY
JAN
0.03
OFF DUNCAN LANE
5.00
FEB
0.03
OFF DUNCAN LANE
7.00
MAR
0.02
OFF DUNCAN LANE
5.00
APR
---
—_
MAY
--
------
JUN
—
JUL
AUG
SEP
--
—_
OCT
NOV
DEC
----
7.00
YTD
0.03
OFF DUNCAN LANE
AIR BLAST (dBL) SEISMOGRAPH LOCATION
MAX.
JAN 126.00
OFF DUNCAN LANE
FEB ---
MAR 110.00
OFF DUNCAN LANE
APR ----
MAY —
JUN
JUL —
AUG — —
SEP --
OCT —
NOV --
DEC ----
YTD 126.00
OFF DUNCAN LANE
MAXIMUM
MAXIMUM
MAXIMUM
FOR
EVENT
YEAR TO
EVENT
BLAST
DATE
DATE
DATE
DATA
March
VIBRATION (IPS)
03/10/2005
0.03
01/28/2005
MAX
0.02
AIR BLAST (dBL)
126.00
01/28/2005
MAX.
110.00
03/10/2005

BLASTING SEISMOGRAPH REPORT
CLIENT NORTH AMERICAN EMERALD MINE
OPERATION : HIDDENITE QUARRY
The results of the Seismograph Test on the date and time shown, as recorded from the location given, are tabulated below.
Client No. : NORHOI Recording No: 17969
Seismic Loc : OFF DUNCAN LANE
Blast Loc .
Time:
11:31:00
Date 03/10/2005
680.00 FT.
Max Lbs. / Delay:
5.00
Distance:
Longitudinal
Transverse
Vertical Maximum
Velocity (IN/SEC) :
0.02
0.02
0.02 0.02
56.9
85.3
73.1 56.9
Frequency(Hz)
110.00 dBL
45.1 (Hz)
Scaling Factor: 304
Peak AirBlast(dB) .
Transducer Serial # : 3022
Microphone Serial #: 3022
Seis. Operator
JUDY BLACK13URN Seis. Serial No 3022
Trigger Levels 0.02/110
Weather .
Comments: SHOT #5
Respectfully Submitted,
Sauls Seismic, Inc.
By: John Babcock

eauldb
SEISMIC, INC.
RON SUMMERS
NORTH AMERICAN EMERALD MINE
531 DUNCAN LANE
HIDDENITE, NC 28636
Re: Seismograph Records - February, 2005
HIDDENITE QUARRY
Job #NORH01
BLAST RESULTS
10660 SOUTH TRYON STREET
CHARLOTTE, NC 28273 USA
704-583-2525
FAX [phone]
ncarol Ina 0 saulsselsmic, oom
www.saulsselsmic.com
Seismic research during the Past forty years has established criteria which relates the occurrence of structural certain levels of ground motion. Vibration damage criteria are now commonly expressed in tnce o of
rate of ground movement at a given point produced b damage tt
y ground vibrations as the Particle velocity, the
they tha[point.
The most recognized vibration limit at this time is that presented by the U. S. Bureau
Particle velocity (for frequencies less than 40 Hz) to 0.50 inch/second for plaste on lath houses andd 0.751inch/secthe ond for
sheetrock construction. For frequencies greater than 40 Hz, a safe vibration limit is 2.0 inches/second. To reduce the
complaints, the air blast should not exceed 133 decibels.
GENERAL COMMENTS
A review of all blasting data indicates the highest readings for the month were <0.03 inch /second and <115 dBL.
IMINGHAM, AL • ATLANTA, GA a CHAPMANVILLE, WV 0 CHARLOTTE, NC • COLUMBUS, OH • KNOXVILLE, TN a LOUISVILLE, KY a NASHVILLE, TN

Sauls Seismic, Inc. SEISMOGRAPHIC RECORDING SYSTEM CLIENT: NORTH AMERICAN EMERALD MINE, HODENITE QUAY
STARTING DATE: 02/01/2005
ENDING DATE: 02/28/2005
Tins utVIBRATION EVALUATION
fonnation is presented as per the U.S. Buteau of Mines Publication
the stair stepped curve have the potential for initiating damage due to
not represent the full RI8507. Accordingly, any points above
Potential.) vibration. (This is peak data only and may
P
A 10
R
T
C
LI
EP
S
V
E
L
O
C
I
T
Y
0.1
USBM RI8507 AND OSMRE Analysis
PEAK VELOCITY
to
FrO clu en c IGO
Y, Hz
Air Blast Evaluation
- Ito
- Ib
"AMUAI AIR BLAST
t15 -la
- It0

Sauls Seismic, Inc. SEISMOGRAPHIC RECORDING SYSTEM
POINTS PLOTTED ON VIBRATION GRAPH
CLIENT: NORTH AMERICAN EMERALD MINE' HIDDENITE QUARRY
Starting Date:. 02/01/2005 Ending Date. 02/28/2005
Frequency
FPoint Vibration Frequency
Point Vibration q y
Label in/sec Hz
Label in/sec Hz
No points above minimums to plot
are listed below. The
oints were
lotted in reverse
sAll o that seismic
results ould always b i0 sible. point As which do t isle poina ear ont withrtlie larg largest vibration in the report. A maximum of 52 points der
are plotted.
A < 0.03

YEAR TO DATE VIBRATION REPORT (MAXIMUMS)
FROM 01/01/2005 TO 02/28/2005
BELOW ARE THE YEAR TO DATE SEISMIC TEST RESULTS FOR:
NORTH AMERICAN EMERALD MINE, HIDDENITE QUARRY
X ♦ XM BLAST DATA
MAX LBSJ
VIBRATION (IPS)
SEISMOGRAPH LOCATION
DELAY
MAX.
5.00
JAN 0.03
OFF DUNCAN LANE
7.00
FEB 0.03
OFF DUNCAN LANE
_
MAR ---
APR —
MAY —
—
JUN --
—
JUL --
----
AUG --
---
SEP
OCT
NOV------
---
DEC
7.00
YTD 0.03
OFF DUNCAN LANE
AIR BLAST (dBL)
SEISMOGRAPH LOCATION
MAX.
JAN 126.00
OFF DUNCAN LANE
FEB ---
MAR --
APR
MAY —
JUN —
JUL
AUG —
SEP --
OCT
NOV — —
DEC --
YTD 126.00
OFF DUNCAN LANE
MAXIMUM
MAXIMUM
MAXIMUM
FOR EVENT
YEAR TO
EVENT
BLAST
DATE
DATE
DATE
DATA
February
VIBRATION (IPS)
02/26/2005
0.03
01/28/2005
MAX.0.03
AIR BLAST (dBL)
126.00
01/28/2005
MAX.

BLASTING SEISMOGRAPH REPORT
CLIENT NORTH AMERICAN EMERALD MINE
OPERATION HIDDENITE QUARRY
The results of the Seismograph Test on the date and time shown, as recorded from the location given, are tabulated below.
Client No. : NORHOI
Seismic Loc : OFF DUNCAN LANE
Blast Loc
Date 02/26/2005
680.00 FT.
Distance:
Longitudinal
Velocity (IN/SEC) : <0.03
Frequency(Hz)
Peak AirBlast(dB)
Transducer Serial #
Seis. Operator
Trigger Levels
Weather --
comments: SHOT #4
Respectfully Submitted,
Sauls Seismic, Inc.
By: JohnBabcock
<115.00 dBL
2221
JUDY BLACKBURN
0.03/115
Recording No: 17806
Time: 12:15:00
Max Lbs. / Delay:
Transverse Vertical
< 0.03 < 0.03
Scaling Factor:
Microphone Serial #:
Seis. Serial No
7.00
Maximum
< 0.03
2221
2221
257

eaul
SEISMIC, INC.
RON SUMMERS
NORTH AMERICAN EMERALD MINE
531 DUNCAN LANE
HIDDENITE, NC 28636
Re: Seismograph Records - January, 2005
HIDDENITE QUARRY
Job #NORHOI
BLAST RESULTS
704-583-2525
FAX [phone]
10660 SOUTH TRYON STREET nearolina®saulsseismic.com
CHARLOTTE, NO 28273 USA www.saulsselsmic.com
Seismic research during the past forty years has established criteria which relates the occurrence of structural damage to
certain levels of ground motion. Vibration damage criteria are now commonly expressed in terms of particle velocity, the
rate of ground movement at a given point produced by ground vibrations as they pass that point.
The most recognized vibration limit at this time is that presented by the U. S. Bureau of Mines, which limits the peak
particle velocity (for frequencies less than 40 Hz) to 0.50 inch/second for plaster on lathe houses and 0.75 inch/second for
sheetrock construction. For frequencies greater than 40 Hz, a safe vibration limit is 2.0 inches/second. To reduce the
complaints, the air blast should not exceed 133 decibels.
GENERAL COMMENTS
A review of all blasting data indicates the highest readings for the month were 0.03 inch /second and 126 dBL.
BIRMINGHAM, AL a ATLANTA, GA a CHAPMANVILLE, WV a CHARLOTTE, NO s COLUMBUS, OH a KNOXVILLE, TN a LOUISVILLE, KY a NASHVILLE, TN

Sauls Seismic, Inc. SEISMOGRAPHIC RECORDING SYSTEM
CLIENT: NORTH AMERICAN EMERALD MINE,
ING DATE: UARRR OS
STARTING DATE: 01/01/2005
VIBRATION EVALUATION
U.S. Bureau of Mines publication RI8507. Accordingly, any points above
This information is presented as per the
the stair stepped curve have the potential for initiating damage due to vibration. (This is peak data only and may
not represent the full potential.)
It Lo
A
R
T
I
C
LI
Ep
S t
V
E
L
O
C
I
T
y 0.1
USBM RI8507 AND OSMRE Analysis
PEAK VELOCITY
Frecuuency, Sz
Air Blast Evaluation
-to
aAXIIAUa AIR BLAST 17D
126
uo
Im

PSeismic, Inc_ SE -11C RECORDING
PLOTTED ON VIBRATION GRAPH SYSTEM
CLIENT: NORTH AMERICAN EMERALD MINE' HIDDENITE QUARRY
Starting Date: 01/01/2005
Ending Date:, 01/31/2005
Point Vibration
Point Vibration Frequency Label in/sec
Label
in/sec Hz
No points above minimums to Plot
Frequency
Hz
All seismic results less than .10 irils , which do not appear on the graph, are listed below. The points were plotted in reverse order
so that seismic
results
would always be visible. Point'A' is the point with the largest vibration m the report. A maximum of 52 points
are plotted. C 0.02 64.00
A 0.03 42.70
B 0.02 64.00

YEAR TO DATE VIBRATION REPORT (MAXIMUMS)
FROM 01/01/2005 TO, 01/31/2005
BELOW ARE THE YEAR TO DATE SEISMIC TEST RESULTS FOR:
NORTH AMERICAN EMERALD MINE, HIDDENITE QUARRY
MAXIMUM BLAST DATA
MAX LBS./
VIBRATION (IPS)
SEISMOGRAPH LOCATION
DELAY
MAX.
JAN 0.03
OFF DUNCAN LANE
5.00
FEB -----
MAR ------
APR
—
MAY -----
—
JUN --
JUL
--
AUG —
SEP ------
OCT
NOV --
DEC ----
5.00
YTD 0.03
OFF DUNCAN LANE
AIR BLAST (dBL) SEISMOGRAPH LOCATION
MAX.
JAN 126.00 OFF DUNCAN LANE
FEB -----
APR — MAY
JUN
JUL —
AUG ---
SEP
OCT —
NOV — —
DEC ----
YTD 126.00 OFF DUNCAN LANE
MAXIMUM
MAXIMUM
MAXIMUM
BLAST
FOR
EVENT
YEAR TO
EVENT
DATA
January
DATE
DATE
DATE
VIBRATION (IPS)
0.03
01/28/2005
0.03
01/28/2005
MAX.
AIR BLAST (dBL)
126.00
Ol/28/2005
MAX.
126.00
01/28/2005

BLASTING SEISMOGRAPH REPORT
CLIENT NORTH AMERICAN EMERALD MINE
OPERATION HIDDENITE QUARRY
The results of the Seismograph Test on the date and time shown, as recorded from the location given are tabulated below.
Recording No: 16541
Client No. NORHOl
Seismic Loc : OFF DUNCAN LANE
Blast Loc
Time:
11:09:00
Date 01/04/2005
Max Lbs. I Delay:
680.00 IT.
Distance:
Longitudinal
Transverse
Vertical
Velocity (IN/SEC) :
0.02
0.02
0.02
39.4
64.0
42.7
Frequency(Hz) •
118.00 dBL
32.0 (Hz)
Scaling Factor:
Peak AirBlast(dB)
Transducer Serial #
Seis. Operator
Trigger Levels
Weather •
Comments: SHOT #1
Respectfully Submitted,
Saul$ Seismic, Inc.
By: John Babcock
3022
JUDY BLACKBURN
0.03/110
Microphone Serial #:
Seis. Serial No
3.00
Maximum
0.02
64.0
3022
3022
393

BLASTING SEISMOGRAPH REPORT
CLIENT : NORTH AMERICAN EMERALD MINE
OPERATION : HIDDENTTE QUARRY
shown as recorded from the location given are tabulated below.
The results of the Seismograph Test on the date and time
Client No. NORH01
Seismic Loc : OFF DUNCAN LANE
Blast Loc
Date 01/13/2005
680.00 FT.
Distance:
Longitudinal
Velocity (IN/SEC) 0.02
64.0
Frequency(Hz)
Peak AirBlast(dB)
Transducer Serial #
Seis. Operator
Trigger Levels
Weather .
Comments: SHOT #2
Respectfully Submitted,
Sauls Seismic, Inc.
By. John Babcock
115.00 dBL
3022
JUDY BLACK13URN
0.03/110
Recording No: 16542
Time: 10:11:00
Max Lbs. / Delay:
Transverse Vertical
0.02 0.02
51.2 46.5
51.2 (Hz) Scaling Factor:
Microphone Serial #:
Seis. Serial No
3.00
Maximum
0.02
64.0
3022
3022
393

BLASTING SEISMOGRAPH REPORT
CLIENT NORTH AMERICAN EMERALD MINE
OPERATION : HIDDENITE QUARRY
The results of the Seismograph Test on the date and time shown, as recorded from the location given, are tabulated below.
Recording No: 16543
Client No. : NORHOl
Seismic Loc : OFF DUNCAN LANE
Blast Loc .
Time:
13:00:00
Date O1/28/2005
Max Lbs. I Delay:
680.00 FT.
Distance:
Longitudinal
Transverse
Vertical
0.02
0.03
Velocity (IN/SEC)
0.03
73.1
60.0
42.7
FrequencARZ)
35.2 (Hz)
Scaling Factor:
Peak A1rB1ast(dB)
126.00 dBL
Transducer Serial #
Seis. Operator
Trigger Levels
Weather :
Comments : SHOT13
Respectfully Submitted,
Sauls Seismic, Inc.
By: John Babcock
3022
JUDY BLACKBURN
0.03/110
Microphone Serial #:
Seis. Serial No
5.00
Maximum
0.03
42.7
3022
3022
304

UN.15.2005 6:36PM N0.8i9 P. 2
- ROBINSON BRADSHAW & HINSON
CHARLa Ri OFFICE DIRECT DIAL: 704.377, 8112
DIRECT FAX; 70H.3:J9.34 12
JREVELLCORSH. COM
June 15, 2005
VIA FACSIMILE AND CERTIFIED MAIL
RETURN RECEIPT REQUESTED
Ms. Anita LeVeaux
N.C. Department of Justice
Envi onmental Division
9001 Mail Service Center
Raleigh, NC 27699
RE: Wm. Fred Walker, Jr, v, NC. Dept, of Environment and Natural Resources, Case
No. 04-EHR-2162;
Dear .Anita;
I write in response to your request that we propose a settlement arrangement acceptable
to Mr. Walker and D&M Emeralds, Inc.
Our clients' primary concern is that blasting by North .American Emerald Mines
("NAEM") under its mining permit has thrown flyrock hundreds of feet beyond the boundaries
of the permitted area and has caused substantial damage to at least three area' wells and a
residence. We presume that NARM is blasting within its permitted range; therefore, the blasting
levels set in the permit are too high for the specific area,
Mr. Walker and D&M Emeralds, Inc. will dismiss their petitions if DENR will modify
the permit (1) to lower blasting levels to a range adequate to avoid flyrock being thrown beyond
the permit boundaries and additional structural damage to residences and area wells and (2) to
require NAEM to place its seismograph on the diorite ridge into which it is blasting to ensure
accurate readings. We are not in a position at this time to state the precise blasting limits that
should be incorporated into the permit, but we believe a coordinated review with DENR of all
NAEM blasting records would help the parties arrive at a mutually agreeable set of limits.
In order that we know if we must continue with our trial preparations, please let me know
by Wednesday, June 22 if DSNR is willing to discuss amending the permit in accordance with
this proposal,
C,938059v118494.00011
Attorneys at Law
Charlotte Office: 101 North Tryon Street, Suite 1900, Charlotte, NC 28246 Ph; 704.377.2536 Fx: 704,378,4000
South Carolina Office: 140 East Main Street, Suite 420, P.O. Drawer 12070, Rock Hill, SC 29731 Ph: 803.325.2900 Fx: 803.325,2929

, UN, 15. 2005 6:36PM
NO. 8 i 9 P. 3
Ms. Anita L®Vea m
6/15?2005
Page 2
Sincerely,
ROBINSON, BRADSHAW & HINSON, P,A.
Jennifer F. Revelle
cc: Mr. William Fred Walker, Jr.
Ms. Dorothy Lewis Watkins
Mr, William W. Toole
4938059v118484.00011

Proposed Departmental Modifications of North American Emerald's Mining Permit.
r*� ru iir��v
Due to the special blasting ectYuites needed at the North American Emerald Mine,
following are permit modifications that the Department is adding to Operating Conditions,,,.P`
of Mining Permit, �2z 70 7x--, ;46 ND--,,m
1. Lower the airblast overpressure limits to 128 decibels
2. Require that mine operator utilize a blasting expert or company to conduct
blasting activities at the site.
3. Require that adequate preventive measures are taken to ensure that flyrock does
not leave the guarded area.
4. Utilize a video camera to video each blast, retain at the mine office a video copy
of each blast and provide copies to the Department upon request
-VI-s7 ff
Fri