20220517_ADI_Received

Sean R. Madden
Company Attorney
701 Corporate Center Drive, Suite 101
Raleigh, NC 27607
Tel: [phone]
[e-mail]
May 13, 2022
VIA UPS AND E-MAIL
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Adam Parr — Assistant State Mining Engineer MAY
Division of Energy, Mineral and Land ResourcesDepartment of 17 1�T2
16 2 Mail Service Cer Environmental Quality II�� NG R0G�
Raleigh, NC 27699
Re: Compass Creek Pit —Mining Permit No. 33-44—Permit Transfer
Dear Mr. Parr:
As you are likely aware, FSC II, LLC dba Fred Smith Company ("FSC") submitted transfer
requests for the permits of the above -referenced Mine. In response to the request, FSC received
correspondence from you requesting additional or revised information for the Mine such that the
request for transfer could be reviewed. FSC secured an extension through May 13, 2022 to respond
to the letter requesting additional information.
Pursuant to the letter, you requested additional or revised information regarding the
following:
1. Provide a current mine map that reflects current site conditions. The mine map must
include the items listed in section B.2 of the mining permit application.
2. Maintain Erosion and Sediment Control (E&SC) measures as noted in the mine
inspection report.
3. Clearly mark the mine permit boundaries as specified in Condition 5 of the mining
permit. All affected area boundaries (21.43 acres) shall be permanently marked at the
site on 100-foot intervals unless the line of sight allows for larger spacing intervals.
4. Provide an estimate life of the mine on pg. 3 or pg. 14 of the mine permit application.
This value is used to determine the inflation factor on the bond reclamation worksheet.
FSC retained WithersRavenel to create updated maps reflecting the current site conditions.
The maps were submitted by WithersRavenel to your attention both via email and hard copy.
Subsequent to generating the maps, the boundaries have been permanently marked to reflect the

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boundaries which appear in the updated maps. With respect to the E&SC measures, Lauren Garcia
noted the measures during her March 10, 2022 inspection. The E&SC measures have been
addressed and remedied as confirmed by the picture below and acknowledged in an email from
Ms. Garcia on May 6, 2022.
Finally, the estimated life of the mine is twenty (20) years.
FSC is respectfully represents that it has addressed each of the items listed in your letter
and requests that the permit transfer be approved. Should you have any questions or require and
additional information, please do not hesitate to contact me.
Regards,
Sean R. Madden
Company Attorney