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Transit Mix Concrete Co. <br /> Introduction to Transit Mix Concrete Co. — Hitch Rack Ranch Quarry Project <br /> Introduction <br /> Transit Mix Concrete Co. (Transit Mix), a subsidiary of Continental Materials Corporation, is <br /> seeking a 112 permit for the development of a new construction aggregate quarry on a portion of <br /> the privately-owned Hitch Rack Ranch property located in the southwestern corner of El Paso <br /> County (County), fifteen miles southwest of downtown Colorado Springs, Colorado west of State <br /> Highway 115. The quarry and access road will be developed on 239 acres of the 1,432-acre <br /> Hitch Rack Ranch (Ranch) property. <br /> The Hitch Rack Ranch Quarry (Quarry) and processing facility will be located entirely within <br /> Section 16, Township 16 S, Range 67 W of the 6tt' Principal Meridian. The access road corridor <br /> will cross narrow portions Sections 16, 21, 22 and 23 within the same Township and Range <br /> ultimately connecting with Colorado State Highway 115 on the eastern boundary of the Ranch <br /> property. <br /> Approval of the proposed operation will assure continued operation of Transit Mix, a decades- <br /> long member of the local business community, and will also secure a significant local source of <br /> important construction materials for development of the community for the next forty years. The <br /> site is located within economic haulage distance to the principal consumption in the market and <br /> will provide approximately sixty million tons of resource. This resource will help fill existing and <br /> future demands for crushed rock in the County vicinity, consistent with the substantial <br /> requirements for road improvement, construction, and other development in Colorado Springs <br /> and the County. Approval of the project will also allow the acceleration of the closure of other <br /> existing quarries. <br /> The Ranch has been owned by the RMBC Group, LLC (RMBC) since 1974 and traditionally has <br /> been used for agricultural and grazing purposes. The Ranch is of sufficient size to accommodate <br /> economic development of the planned Quarry while providing substantial buffer areas to <br /> effectively incorporate the operation into the local environment without adverse impact. The <br /> Ranch is the largest parcel of privately owned property located in the granitic geologic <br /> environment that is best suited for production of crushed stone aggregate to supply the <br /> community. Transit Mix has secured a long-term royalty agreement with RMBC which includes, <br /> among other provisions, expressly granting to Transit Mix the right to enter upon and use the <br /> surface of the Ranch for mining operations. <br /> Mineral rights associated with the portion of the Ranch property proposed for mining were <br /> reserved by the State of Colorado in 1909 and are currently administered by the Colorado State <br /> Land Board for the benefit of the citizens of Colorado, including funding for Colorado schools. <br /> Transit Mix has a mineral lease from the State Land Board for the development of the Quarry and <br /> for the extraction of sand, gravel, and crushed stone minerals and resources. Royalty payments <br /> from the mineral lease will annually generate approximately $750,000 of funding dedicated for <br /> Hitch Rack Ranch Quarry Permit Application <br /> October 3,2017 v <br />