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III IIIIIIIIIIIII III • 999 August 26, 1998 St Vrain Community Watchdogs Richard Cargill 5976 Hygiene Road Longmont, CO 80503 Dear Mr. Cargill: Recently there has been a series of letters, petitions, and phone calls regarding operating permits and concerns about ongoing compliance at our Lyons cement plant. The "St. Vrain Valley Community Watchdogs" have been very thorough and frequent in their campaign. Southdown takes these issues very seriously regardless of whether they fall into regulated areas or simply are matters of neighborhood relations. Representatives of the Lyons plant and our Corporate staff recently met with the Watchdog group to listen to their concerns and develop action plans. We believe it was a good meeting at which we were able to discuss the issues from our neighbors; and at the same time, we were able to correct some of the rumors that had been circulated. I feel we made real progress. We opened communication channels and the Company agreed to several actions. The key ones were 1: to have afollow-up meeting in October, and 2: to distribute a newsletter explaining what we were changing and the likely impacts on the community. Southdown agreed that this would be an excellent way to address these issues. A copy of this letter is attached for your reference. The situation started with concerns about material blowing out of an old quarry area during high wind situations. The Company addressed this issue by: • placing cover over the old quarry area installing sprinklers at a new quarry area • reducing the amount of material exposed to potential wind erosion reducing the haul distance for the material due to the close proximity of the new quarry area. The Company made these changes before the date promised (June 30, 1998) and there has been no recurrence or subsequent complaints related to this area. More recently the "St. Vrain Valley Watchdogs" have expressed concern over air permit changes requested by the Southdown. As submitted, the permit Southdown, IC1 C. ~ PO BOx 529 ~ LYONS, COLORADO 80540 ~ (303)823-2100