3505_CapitalMaterials_20151026_FALetterofCredit_DIN28317

October 26, 2015

Emailed: [e-mail] and [e-mail]

Mr. James Adams Mr. Ron Gibson
Capital Materials & Recycling, LLC Capital Materials & Recycling, LLC
2095 US HWY 1 2095 US HWY 1
FRANKLINTON, NC 27525 FRANKLINTON, NC 27525

Re: Financial Assurance Letter of Credit # SB94152 Renewal/Reduction
CAPTIAL MATERIALS & RECYCLING, LLC, PERMIT # 3505-TP-2014
A Treatment & Processing Facility

Mr. Adams and Mr. Gibson:

The Division of Waste Management, Solid Waste Section (Section) has acknowledged Capital Materials & Recycling,
LLC.’s revised closure cost amount of $239,030.00 (2015 dollars), and have found the estimate to be adequate. Capital
Materials & Recycling, LLC. is advised to reduce the closure cost amount of their letter of credit no. SB94152 to
$239,030.00, which was issued by First Citizens Bank originally on November 10, 2014. With the renewal/reduction
of the letter of credit, the standby trust agreement will also need to be revised to reflect the letter of credit change.
Please revise the closure cost amount within Schedule A of the Standby Trust to reflect the updated letter of credit
amount.

In summary, the Section hereby approves the reduction in closure costs in reference to the above mentioned Letter of
Credit # SB94152 which was entered into agreement on November 10, 2014 and expires on November 5, 2015 for
permit 3505-TP-2014. The revised letter of credit should be renewed by no later than November 5, 2015 and original
documents submitted to the Section at 1646 Mail Service Center, Raleigh, NC 27699 along with the revised standby
trust agreement.

Should you or First Citizens Bank have any questions regarding this matter please contact me at 919.707.8287, or by
email at [e-mail]. You may also contact Christine Ritter at 919-707-8254 or by email at
[e-mail] to further discuss any permitting concerns.

Sincerely,

Sarah Rice, Compliance Officer
Division of Waste Management, NCDEQ

ec: Stacey Smith, Smith + Gardner
Ellen Lorscheider, DWM
Ed Mussler, DWM Jason Watkins, DWM Christine Ritter, DWM
Mary Whaley, DWM