02-06 North American Emerald Mine File Pt. 19.2

. . . ........... ... ............................... ... ........ .
07
Proposed Departmental Modifications of North American Ein,,-r,,fjd's Mining Permit.
Due to the special blasting needed at the North Arn,,-ricui Emerald Mine,
following are permit modifications that the Department is a6ding, to Operating Conditions,
of Mining PermA6�2-,O&
1. Lower the airblast overpressure limits to 128 decibel 3
2. Require that mine operator utilize a blasting expert cr 3onipany 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 I ho mine office a video copy
of each blast and provide copies to the Department upon request
I .
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FI,C;FI F vSHBURN, GREENE & CHAPMAN, P.A.
RECE WED
ATTORNEYS AT L.AW
320 W. BROAD STREET
P.O. Box 1 108
i I
DOuGLAS G. E' S LE STATESVILLE, NORTH CAROLINA 28687- I CIE TELEPHONE [phone]
DAMES P. SHei
i 5LIV of Land Resources {{{
A�R - ----
FAx [phone]
JOHN D. GREENE RuSSELL W. CHAPMAN, JR. August 9, 20
()C.
Mr. James D. Simons, PG, PE
NCDENR
Division of Land Resources
1612 Mail Service Center
Raleigh, NC 27699-1612
Re: North American Emerald Mines, I.'r:. (Permit No. 02-06)
Dear Mr. Simons:
I enclose additional information phi<.:z I have received
from North American Emerald Mines, Irc., today. I have
attempted twice today to call Ms. LaBeaux, ciily to find her out
of the office on both occasions.
Sinc re y, �.
Doug � 1 jG. J i.3e].e
.
DGE:lbj
Enclosures
cc: Mr. Hill Duncan

"7
_--
producing the Finest Quality Emeralds & Gemstones in North America
FAX COVER SHEFIT
To: 1 ,cam
ATTENTION: -- -
FAX ( l q? ;l- 9 f % rcta Pages Sent:
: 7 �)
FROM: North American Emerald Mines, In
FAX F"': 828 635-7080 VOICE: 828 635-8080
C/
14
GejV � V-a4• s �rr>.r�q
a s ��c � ors � �'eu� � m p�;r�• � � � %�� a
CONFIDEN- IAL-Ty NOTICE: The infoim9.tion eons
constitutes information which belongs to North Arneric
individual or entity names above- if you arc notthc int
disclosure, copying, distribut?on or the taking of any ac
this communication in error, plcaae immediately notify
Service. -- -
531 1?-=can Lane Hiddenite, North i :arolLia 28836
Office: 828-635-8080 4 Fax- £32S-6 K-7030
gcd�in,t�is facsi nice me ;sage, and in any accompanying documents,
j<a1d7v(ui�s;?jny. "Lis information is intended only for the use of the
d�i'rectp�cnE ilf�iiis inf )nnatinn, you arc hereby notified thal any
in;ipiteliancc tl'tfus ini )rnt-i an, is strictly prohibited. If you have received
stiv tel el oiiea li! rctuta the er Dgginal message above via the U.S. Postal

-RCM : N—A—E—M
'a, Bill CLricar ?age ?. o' ZZ
FAX NO. : e28-635-72e2 Aug. 09 200°
20c5-ce-09 1":!:30 (GM 1 ) ,-
SAB-LS
SEISMIC,
10660 South Tryon Street a00-3il-8566
Charlotte, NC 28:' i 04-5S3-352i
Fax '04-583-1008
The International Society of Explosive Engineers (IS _E_) ras established specific
guidelines on the proper installation of seismographs based Sri :several U. S. Bureau of Mines
studies. (US Bureau of Mines RI 85W. These standards aia ac :epted nationwide for
seismograph monitoring. The guidelines state that the trarsduo;,r or geophone should be
buried in the soil in order to obtain an, accurate reading of q",A)r3tion. The research
completed by the U. S. Bureau of Mines and the resulting Aiwa on guidelines are based on
the `act urat the vibration vnll be measured by a transducer spiky~ cd or buried in the soil.
Since vibration dissipates at a consistent rate with distance, the vibration at the dosest
structure would be less than the vibration recorded at the perrnarert seismograph. The rate
of dissipation can be ca�cunted using regression formulas: and -tie vibration at a structure
further away than the seismograph can be verified.
Tne following questions in Mr. Simon letter should be rest 01cl Ed to by a blasting expert or
company and by personal knowtedgeable in previous blasttrXI 1:ractices at North American
Emerald Mines.
Item 01 Part B: Are t1we any nctations n the records wtfvr+ your posscwon indkatng that
weather oort=r�a Cr ctt?er arcumstanae6 that may have c8+.,3d fhe periodic complaints,
e re-r when t o blasting measurements were web within &,v
Item #2: Do any of the records nota the occurrence of ftytW,,k teyond the immediate blast
area, or beyond th& guarded area? Ahere do the records Cte the occurrence of fiv rock?
item #3: The July 11, 2005 report ac/o�owledges that b/a: t 7G, for this mine is dif;rererrt from
marries and construction A frough the total poundage of a p,cziveas per delay required may
be/esz the poss NRY of fly rock e=�t iNhat guidelines fc rbAs st cor07& w t are used for
blasting in this case to prevent fly rock? Offske occurrencs of 9yrock have been afted. Are
tl,,ere addVonai p acar tbrns that can be rased? Mat are ti n at djtonal precautions?
Item #,55: One cf ire ccncerrs raised by tyre ner hbors z t'x, "'<irtfirrg efi`ed ofhav -,g a blast
go off vvic'roct notice. mat kind cf waming notike is given 5ofc: r o blasting?
1` you need further information on to vibration and air overTressLTe records, please call me.
Sincerely,
John Babcock
Sauls Seismic, Inc.

Cif :'a �_. .. � � �_ - x .� _� � � �� � � _. _. ��. � .� � -.�_ ._

FROM N-A-E-M FAX NO. : 828-635-708El Aug. 09 2005 10:25RM P3
an I Lb.
nm
SEtSMiC, INC.
10660 south 'rryort street
Cbarloae, NC 28" ? 3
North American Emerald Mines, Inc.
531 Duncan Lane
Hiddenite, North Cardire 23636
RE: Request for information
NC State letter from July 1g,•2005
Dear Mr. Hal,
Rol).? j 1-sib r.
Fax �0 i 5S3-1(�78
I have reviewed Mr. Sirrx;ns' (NC Division of Land Resournas)10ter to you concerning Sauls
Seismic, Ine.'s first letter. I have prepared this letter addressrig Mr. Simon's questions where
Sauls Seismic, Inc. has the relevant information required.
Saul$ Seismic, Inc. is a seismic consulting company addre<i;irg ssues regardirg vib:aation,
air overpressure, and damage claims resulting from vibration A number of the questions
given by Mr. Sirrrnors should be addressed by a blasting cainl:<rny with expertise in this
area. Addifiorzal questions are raised regarding the past hiArn� of blasting practices and
record keeping. These questions can onty be answered by personal lbailiar with the
previous basbrZg operafion. Sauk Seismic, Inc. was only ir>wotk,od in the mndohng and
review of the vibration and air overpressure resufrs from tix b1<r z-dng.
The following questions from Mr. Simons' letter vAl be add; e�;sFaJl by Sauls Sesrric, Inc.
Item ;*, : Co aff recorcfs sborrf Fiat air blasts and g z7d , fi tr 3tii %-xs have been w#l�i the knits
cf ih3 �.^�7ii?
The maxirrumvibration recorded at North American Er.^.eraid Mnes since 2003 has
been 0.04 inch per second and a maximum air overpresst_ re o'' 130 Decibels. Overall, 4he
ground-,Abration has been equal to or less than 0.03 — 0.02 i.xn per second_ These levels
are approximately less than 10% ofvvhat is allowed under Nartf. Carolina lave_ In North
Carolina, state regulations folow the standard USBM graph bw •Abraion: the air overpressure
6rrdt in Ncrth Carolina is 133 Decibels. The ground vibration ardf air overpressure recorded at
North American Emerald Mines hale consistentfy been well wiJun North Carorrna's
requirements.
Item 44: The Jtdy 11, 2005, report confirms d7at the seisr, x g, s rah is rnounted much loser to
tip btesttng &.on tt-�s nc-art ofs#--:- structra A =ncem h,x. t, ssn raised that having the
seisrncTaph rnotgtted in the soil is not as a=vate as havt.,g ; tie seismograph resting on a
rock to yer Please let U�is c5cce how Y ther+e are aternatUeF Flat a waenfs far tt7e seisrr WjCh.
"buld y,oLr cw7sLjh%-?tp+ease render a prohessortal ops';kv o, i this?

FROr : N-A-E-M FAX NO. : 82e-635-7089 Aug. 09 2005 10:26AM P4
August 9, 2005
Memo to Doug Eisele:
Reference NC DL•NR 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 1tly 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 pat:c;ms 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-delay:c blasting caps.
Item 5: We are not knowledgeable of the practices of tlic previous management,
however, going forward our practice will be to make a courtesy call to our neighbors
thirty minutes prior to blasting. i i
Janus K. ITill, Jr.

STATE OF NORTH CAROLIN
COUNTY OF ALEXANDER
WM. FRED WALKER, JR.,
Petitioner,
V.
R�C�NED
MAY 200,
Div of Land R urAD
N.C. DEPT. OF ENVIRONMENT
AND NATURAL RESOURCES,
Respondent.
4
INTHE OFFICE OF
N [STRATIVE HEARINGS
04--EHR-2162
11 411
PETITIONER'S RESPONSE TO
RESPONDENT'S SECOND SET OF
DISCOVERY REQUESTS
Petitioner Fred Walker ("Petitioner") objects to Respondent N.C. Dept. of Environment
and Natural Resources' ("Respondent") Second Set of Discovery Requests on the grounds that
Respondent failed to make the requests in a timely fashion, as they were served after the close of
discovery as established by the Court's Order dated March 30, 2005.
Petitioner objects to Respondent's Second Set of Discover^i Requests to the extent they
are overbroad, unduly burdensome and not reasonably calculated to lead to the discovery of
admissible evidence.
Petitioner objects to Respondent's Second Set of Discovery :Requests to the extent they
seek information protected by the attorney -client privilege and the doctrine preventing disclosure
of attorney -client work product.
41
Petitioner objects to the scope of Respondent's Second Set of Discovery Requests to the
extent they seek information not properly discoverable under the Federal Rules of Civil
Procedure.
C-93299M 18484.00011

Petitioner objects to the definitions and instructions contai aed in Respondent's Second
Set of Discovery Requests to the extent they seek to impose ob] igivions other than those set forth
in the Federal Rules of Civil Procedure.
Without waiving these objections, Petitioner responds to the requests as follows:
INTERROGATORIES
1. With regard to your contention that the seismograph is i oiproperly located, explain the
legal and factual basis for your contention (identifying facts, p(rs ins and documents as required
by the Definitions preceding this request). i
RESPONSE: Mr. Rocky Roberts, a landowner in the community, Informs Petitioner that during
a visit to NAEM's mine, a representative of the company conducting the blasting showed him
the location of the seismograph. Mr. Michael Watkins, an expert in the region's geology,
indicates that at that location, the seismograph is set on a ridge of rock that is softer and more
shock-absorbant than the diorite rock into which the blasts are directed. As a result, the
seismograph reads vibrations significantly lower than those triggerad in the diorite ridge that
runs through the adjoining properties. Only by placing the seismop•aph on the diorite itself will
NAEM achieve an accurate measure of the blasts' effects. Mr. Roberts' address is 1670 Church
Road, Hiddenite, North Carolina 28636. Mr. Watkins' address is 1. (13 Emerald Hollow Mine
Road, Hiddenite, North Carolina 28636.
2. With regard to your contention that the bed of the ;reek was damaged by NAEM's
mining operations, explain the legal and factual basis for yoxLr contention (identifying facts,
persons and documents as required by the Definitions preceding this request).
C-93299M 18484.00011

RESPONSE: See Petitioner's Response to Interrogatory 10 c f Respondent's First Set of
Discovery Requests. 0
3. With regard to your contention that as a result of NA 's dining operations, a landmark
is now gone, state the name and location of the landmark and explain the legal and factual basis
for your contention (identifying facts, persons and documents u:, required by the Definitions
preceding this request).
RESPONSE: See Petitioner's Response to Interrogatory 11 of Respondent's First Set of
f
Discovery Requests.
4. With regard to your contention that as a result of NAEM-s mining operations adversely
affect the waters of the State, explain the legal and factual batiis for your contention (identifying
facts, persons and documents as required by the Definitions preceding this request).
I
RESPONSE: The discovery by Petitioner and Dorothy Watkins of flyrock on the property
owned by Jack B. Wooten & Co. and located across the stream from the land subject to the
Permit leads to the reasonable inference that flyrock is falling into the stream in violation of
section 404 of the Clean Water Act, 33 U.S.C. §1344 and state regulations at 15A N.C.A.C. 2B
section .0200 and 15A N.C.A.C. 2H section .0500. This is a —Oblation of section 3(A) of the
Permit.
I I'
C-932990v2 18484.00011
'fIi

�� ii li . � �rf r s _ � _ .. _ . _ � i ' � � _ . _ _ _ a _�� _ Vic- - ..r�r: _

NAEM has constructed a non-public road a mere 27 :eat from the stream in violation of
the requirement in Section 3(B) of the Permit that NAEM maintain a minimum 100-foot
undisturbed buffer between the affected land and any adjoining; ,,vaterway. Furthermore, despite
the provision in Section 4(A) that obligates NAEM to establish mechanical barriers against
erosion, NAEM has taken no such precautions. Significant quantities of silt have been
discharged into the stream in violation of both the Permit and the Clean Water Act.
II fill
5. With regard to your contention that as a result of NAE Nt's mining operations have caused
structural damage to a nearby house, explain the legal and factual basis for your contention
(identifying facts, persons and documents as required by the Definitions preceding this request).
J s
RESPONSE: NAEM's blasting under the Permit has caused substantial damage to the home
occupied by Dorothy Watkins and located on the property owned by D&M Emeralds, Inc. that
lies adjacent to the permitted area. The concrete -reinforced �.iiiderblock walls of the home now
have numerous, sizable cracks due to the blasting that began in 2.002. N.C.G.S. § 74-51(d)(4)
provides for permit denial where the operation constitutes a direct and substantial physical
hazard to a neighboring dwelling house. Petitioner produced copies of photographs responsive
to this request to Respondent on May 11, 2005. Petitioner is unaware of any additional
responsive documents.
�Ir
6. With regard to your contention that as a result o [AEM's mining operations have
damaged wells that deliver potable groundwater, state the exact location of each well and explain
Al
C-932990v2 18484.00011

the legal and factual basis for your contention (identifying lact3, persons and documents as
required by the Definitions preceding this request).
RESPONSE: NAEM's blasting under the Permit has damaged at least three potable water wells
in the area. These wells provide the sole source of potable waiter for their respective owners, and
the damage from the blasting has polluted that water with large; quantities of silt. The locations
of these wells are as follows: II I
(1) Jack B. Wooten & Co. property leased by Petitioner;
(2) D&M Emeralds, Inc. property adjacent to the bind 3abject to the Permit;
(3) Property owned by Mr. Jerry Lackey along the Little South Yadkin River
approximately one-half to three-quarters of a mile from the laaid subject to the Permit;
Persons with knowledge of the damage to these wells include the following:
Petitioner
173 Riverside Farm Lane
Hiddenite, North Carolina 28636
Ms. Dorothy Watkins
P.O. Box 276
Hiddenite, North Carolina 28636
Mr. Jerry Lackey
760 Riverside Farm Lane
Hiddenite, North Carolina 28636
Mr. Jason Harris
877 Riverside Farm Lane
Hiddenite, North Carolina 28636
Mr. Randy Mitchell
851 Riverside Farm Lane
C-932990v2 18484.00011
IA
1._J
EM

fly
Hiddenite, North Carolina 28636
Others not yet identified.
N.C.G.S. § 74-51(d)(2) provides for permit denial upon a finding that the operation will
have an undue adverse impact upon potable groundwater supplies.
7. With regard to your contention that the Permit sets the blasting levels too high, state the
blasting limits you contend are appropriate and explain thy.; legal and factual basis for your
contention (identifying facts, persons and documents as required by the Definitions preceding
this request).
RESPONSE: As evidenced by the damage to an occupied resid<--nce and at least three potable
wells and the flyrock that is landing outside the boundaries o f the Permit area, the current
blasting levels under the Permit are too high. Petitioner does riot :urrently have an opinion as to
what specific lower blasting levels would be appropriate. It is Respondent's statutory
responsibility to investigate and determine the appropriateness, of blasting levels before allowing
blasting under the Permit. See N.C. Gen. Stat. §§74-51(d) grid (f). It is also Respondent's
statutory responsibility to investigate citizen complaints of serioas property damage, flyrock, and
other issues that demonstrate the blasting levels under the Pennit tu•e too high prior to modifying
the Permit. See N.C. Gen. Stat. §§74-51(d)(7) and 74-52(b). Respondent should determine what
blasting levels are appropriate before allowing blasting under the Permit to continue.
8. State the exact location of your residence on the Jack B. Wooten & Co. property and
identify all lease agreements and other documents which support and document its location.
C-93299M 18484.00011

i
RESPONSE: See Petitioner's Response to Interrogatory 16 c t &4�1
f
Discovery Requests. Documents responsive to this request �u•, Cl��, •tit
r
County Register of Deeds. Respondent has access to these documer
and Respondent may obtain these documents as easily as Petitioner.
Ste-
S
9. Describe in detail your responsibilities as
caretaker of th(, .fa 1 /
and identify any and all written agreements or other documents bil;'ween you and Mr. Wooten
which define these responsibilities.
Ji11
RESPONSE: Petitioner's primary function is to patrol the Jack B. Wooten & Co. and Betty
Wooten land to prevent damage to the land and trespassing by prc►ple looking to hunt, dig for
gemstones or cut timber. As Mr. Wooten rarely visits the property, Petitioner is responsible for
protecting the land and preserving the resources on it. Petitioner's agreement with Mr. Wooten
is oral, so there are no documents responsive to this request.
10. With respect to the geologist you or your attorneys expect to call as an expert witness at
the hearing to be held on this matter, please provide the following information:
(a) Identify each such person; U
(b) State the person's job title and professional quattiications;
(c) Describe the subject matter of which the geolot�ist is expected to testify;
(d) Describe the substance of the facts to which the geologist is expected to testify;
Oil
C-932990V2 18484.00011

(e) Identify any and all documents which contain information pertaining to the
geologist's testimony.
RESPONSE: See Petitioner's Response to Interrogatory 14 of Respondent's First Set of
Discovery Requests.
This i la -"'day of May, 2005.
William W. Toole
N.C. Bar No. 16*2
ROBINSON, BRAI)Sw,,v & HINSON, P.A.
101 North Tryon Str(,..t, Suite 1900
Charlotte, North Carolina 28246
Direct Dial: (70-1) 3'1'1-8373
Direct Facsimile: [phone]
Email: wtoole a rbh,com
Je ife F. eve] le
N.C. Bar No. 32896
ROBINSON, BRADSHAIV & HINSON, P.A.
101 North Tryon Strec;t, Suite 1900
Charlotte, North Carol ina 28246
Direct Dial: (704) 3 7 77-8112
Direct Facsimile: [phone]
Email: 'revelle axbh.com
Attorneys for Petitioner Wm. Fred Walker, Jr.
fill
C-932990v2 18484.00011 11�

CERTIFICATE OF SERVICE
I hereby certify that the foregoing PETITIONER'S RESPONSE TO RESPONDENT'S
SECOND SET OF DISCOVERY REQUESTS has been servec_ upon each of the parties to this
action by depositing same in the United States mail, postage prupaid, in an envelope(s) addressed as
fnllnwc-
Anita LeVeaux
N.C. Department of Justice
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699
[e-mail]
/ 41,
This (�' day of May, 2005.
11m
i b,
C-93299M 18484.00011

ROBINSON BRADSHAW & HINSON
CHARLOTTE OFFICE
RECEIVED
MY �. n 2005
y 12, 2005
Div of Land Resources
VIA CERTIFIED RETURN RECEIPT
Ms. Marjorie Downey
N.C. Department of Justice
Environmental Division
9001 Mail Service Center
Raleigh, NC 27699
DIRECT DIAL: 704.377.8 1 1 2
DIRECT FAx: [phone]
[e-mail]
Re: WM. Fred Walker, Jr. v. N.C. Dept. of Enviro,wic.it and Natural Resources, Case
No. 04-EHR-2162
Dear Marjorie: I i
Pursuant to your call to Bill Toole last Friday, I enclose copies of photographs responsive
to DENR's discovery requests. These are the only responsive documents we have not already
submitted to the OAH as exhibits to our recent motions and respo:ises.
Sincerely,
q—P"1414
Jennifer F. Revella
fill
`�,Y 1 7 21Q,5
Attorneys at Law I ;
Charlotte Office: 101 North Tryon Street, Suite 1900, Charlotte, NC 28246 Ph: "04.377.2536 Fx: 704.378.4000
South Carolina Office: 140 East Main Street, Suite 420, P.O. Drawer 12070, Rock Hill, S(' 29731 Ph: 803.325.2900 Fx: 803.325.2929

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