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Tim Cazier February 15, 2012 Page 2 Increase Amount of Reclamation Bond GCC Rio Grande Pueblo Plant of pond volume as a result of the increase in disturbed acreage at the quarry area is not necessary. As stated in GCC's mining application, the pond will be modified to accommodate the additional drainage areas during mining block years 6 through 10 and 11 through 25 (210 and 470 acres, respectively). The current mining plan limits quarrying activities to 10 hours per day and limits the removal of overburden to 8 hours per day. GCC is proposing to replace these restrictions with daily production limits. As proposed in GCC's application to modify the Facility's air permit, the daily crushed stone production limit will be 12,000 tons per day (tpd). The daily overburden management limit will be 7,200 tpd during normal operations and 27,000 tpd when the plant is not producing clinker. CDPHE is currently reviewing an air quality model submitted by GCC demonstrating that these changes will not detrimentally impact Ambient Air Quality Standards. We anticipate that the revised air permit will be issued in the First Quarter of 2012, following a public comment period. A public notice related to the permit modification will be submitted for publication in the Pueblo Chieftain and a public hearing will be held in Pueblo before a final permit is issued. As a result of the proposed increase in the active quarry area, GCC assumes that 45 acres will need to be reclaimed by grading, placing topsoil, fertilizing, seeding and mulching at closure of the quarry. This assumption includes the 40 acres of active quarry plus 5 acres of working area. Exhibit L of GCC's mining application contains the estimated costs of reclamation of the surface mine. Tables L -1 through L -5, which are included as an attachment to this letter, contains itemized cost summaries for reclamation of the final pit. Name Change Condition A. of the Permit Recitals states that GCC operates a mining operation "known as Red Rock Plant & Limestone Mine." Since its construction the Facility is now known as the Rio Grande, Inc., Pueblo Cement Plant and Limestone Quarry. For clarification, the Permit should be revised to reflect the current facility name. This change does not in any way affect the ownership of the Facility and merely aligns the permit with the Facility's operating name. Please call Barbara Hodgson, the Plant's Environmental Manager, at (719) 647 -6829 if you have any questions about this application. Sincerer, 7vr , G a Nance lant Manager