Background:

These questions are being presented in an effort to bring out all of the facts that we feel will be required for the Planning Commission (PC), Board of Supervisors (BOS) and the Community to make a well- informed decision. These questions are intended not only to help everyone concerned better understand General Shale's intentions, methods of operation, and past performance but also to clarify information presented in the SUP and Planning Commission Meeting.

1. The following questions are being posed to attempt to quantify employee status. These questions pertain to General Shale's current operation in Somerset.
   1. The Orange County Chamber of Commerce reports that GS has 50 employees, the Economic Development Authority reports 81, Charles Bowman at the Jan. 3 PC meeting reported 91. How many employees are there now at GS's Somerset plant?

      As of this date we have 59 full time employees. Layoffs due to economic and seasonal decline for brick have temporarily reduced this number from a high of 91 during 2001. These layoffs are considered temporary.

   2. How many of these employees are full time?

      See answer to question number 1.

   3. How many employees are part time?

      See answer to question number 1.

   4. How many are contractors?

      Contractor employees are not included in the employee numbers provided in the answers to question number 1.

   5. What are the business addresses of the contractors?

      This is not applicable.

   6. An "estimate" of 61% was given to represent the percentage of employees who reside in Orange County. Excluding contractors, what is the actual number of full-time employees who live in Orange County? Part-time?

      At our reduced level of 59 current employees, 32 or 54% of them live in Orange County. We presently have no part-time employees.

   7. What is the average salary of GS's Somerset employees not including contractors?

      Complete salary information is confidential. Our present hourly labor rates for plant production employees range from $10.05 to $14.11 with a 2.5% increase effective February 1, 2002. One group works on a piece rate, which has resulted in rates as much as $16.00 per hour.

2. The following questions are being posed to better quantify General Shale's assertions that they are almost out of usable material, the product they are looking for is not available in a more conducive location and also to establish GS's long term goals and plans (beyond 15 years) to find new product.
   1. What is the specific subset of Triassic-Age Shale (eg: Balls Bluff) used at GS's current Somerset site?

      This stratigraphic unit has been referred to in the published literature as the Balls Bluff siltstone. The exact geological map unit is of very limited significance. The specific brick making properties of this unit varies considerably. This explains why much of the remaining material at the plant mine site is unsuitable.

   2. Are there other Triassic-Age shale subsets that can be used?

      See answer to question number 1.

   3. How much raw material (in cubic yards) of the type of material in question number B.1. is estimated to be on land that GS owns in Orange County? Do you intend to mine this? If not, why? If so, how long will it last at current usage level?

      180,000 cubic yards. This is a one year supply at maximum production level or a 1.8 year supply at the current reduced production level. While there is additional shale available on our property, it is not of a suitable quality.

   4. What other properties in neighboring counties does General Shale or one of its entities own?

      None

   5. What is the acreage of potentially suitable material in each of these sites?

      None

   6. Where else in Orange County has GS looked for Triassic-Age shale?

      The limits of the Triassic shale are well defined by state geologic publications. Our geologists have had an on-going sampling and testing program for 5 years to determine specific areas of acceptable quality. Samples have been obtained from 18 separate locations and subsequently analyzed at our company laboratory.

   7. Where in Orange County has GS found suitable material but could not come to terms with the owner to purchase property?

      While a portion of the samples obtained by our geologists were of an acceptable quality, no suitable tract of land was available. This includes property contiguous to our existing plant and mining operation.

   8. Where has GS found suitable material that is otherwise not economically practical to mine?

      This has occurred in General Shale's history. However, this has not yet occurred at our Somerset Plant.

   9. What are the site selection criteria for a new site to supply the Somerset plant?

      The criteria include all aspects of federal, state, and local requirements. The two most constraining criteria, however, are the quality of shale and the availability of property.

   10. What is the GS long-range plan for obtaining more material in Orange County?

       Our plan is to acquire an adequate quantity of high quality material at a reasonable cost. Obtaining long-range raw material reserves is always an on-going function.

3. The following questions are being posed to better understand GS's business practices and operations in relation to its neighbors at their Somerset site and in other communities to try to establish baselines of accepted practices. These questions will also help ascertain GS's normal site selection in terms of isolation.
   1. What is the buffer zone around mining areas at Somerset, and at other locations (type buffer, width, etc.)?

      Virginia mining regulations require a minimum of 25' setback/buffer zone. Other states have varying requirements. The most common distance is 50'. Our policy is to make every reasonable attempt to provide an effective buffer, regardless of specific requirements. Where our operation adjoins timberland or agricultural lands, a minimal buffer is more than adequate. Where the operation adjoins residential areas or public roads, additional buffer to include both existing vegetation and additional plantings is typically provided.

   2. What is (or has been over the past five years) the distance from mining activities to the nearest 10 residences?

      This varies from site to site. We do not maintain specific information in this regard. The residences in closest proximity to our active operations are several who have chosen to lease their property to us for mining purposes. Their reason typically has been to provide income and/or improvement of the grade of their property for other uses.

   3. Does GS truck in this proportion / amount of raw material from off-site locations through communities at any other of their mining sites? If so where are they?

      Yes. These include Atlanta, GA; Burlington, NC; Darlington, PA; Huntsville, AL; Johnson City, TN; Kingsport, TN; Knoxville, TN; Sanford, NC; Moncure, NC; Marion, VA; Mooresville, IN; and Roanoke, VA. In addition to Somerset, only two other locations obtain all their raw material at the plant site.

   4. Has ground water been contaminated at any other GS Sites? If so, where and with what results?

      No. These operations do not involve hazardous materials, and have no potential to contaminate ground water.

   5. Has GS ever been found to have mined land without obtaining the proper permitting?

      No. We do however, have one unresolved issue at one location. A contention has been made that an expansion of our operation required local zoning approval, which we did not obtain. We do not agree that this is the case, but have discontinued mining in this area until this issue is resolved.

4. The following questions are being posed to establish the life cycle and current state of Somerset facility.
   1. What is the life expectancy of your Somerset plant in terms of the equipment used to process/form your end product?

      Indefinite. This is dependent upon the profitability of the operation. Machinery and equipment replacement is an on-going process. Resolution of the current limits on our raw material supply will justify additional investment in equipment and machinery.

   2. What is your current schedule of life cycle replacements at your Somerset plant?

      See answer to question 1.

   3. Do you have a long-range equipment replacement plan? If so what does it entail?

      See answer to question 1.

5. The following questions are being posed to establish past issues, past practices and past performance at the Somerset site.
   1. How in the past have you measured acceptable limits of dust, dirt, and noise levels? How do you monitor these? What are these levels over the course of 2001?

      These matters are regulated by both state and federal agencies. Our operations have never been found to be in violation of their standards. Nor do we have a history of complaints in this regard. There has been no need to measure these items, because the levels generated at the Somerset site are not a problem.

   2. What has been done in the past to keep dust, dirt and noise within acceptable limits? What do you do when these measures do not work?

      The material being mined is soft clay material with a substantial moisture content. The primary potential source of dust will be the roadway. This will be controlled, as needed, by wetting the road surface during dry conditions. A portion of the entrance road will be paved to assure that no dirt will be tracked onto the public roads. All equipment to be operated on the site will be equipped with industry standard noise suppression. The controls that we have in place have always been adequate.

   3. How much dust and grit on windows, vehicles, laundry can we expect, during mining and during trucking operations?

      See answers to numbers 1 and 2. We do not expect to generate an increase in existing dust level off site.

   4. What spills of oil, fuel, or other environmentally harmful substances have you had in the past five years? Have each of these been reported to appropriate authorities? With what disposition?

      None.

   5. In those instances where spills have occurred what was GS's response and how successful was the remediation?

      Not applicable. See answer to question 4.

   6. Since GS took over the Webster Brick Plant how much has GS mined in terms of acreage? How much of that acreage has been reclaimed?

      At the time of our purchase of the Somerset Plant, 107 acres were active permitted mining area. At present, the active mining area is 114.8 acres. This is an active mining operation and no areas have been fully reclaimed. Final reclamation cannot be completed until all mining activity has ceased.

   7. How much of the reclaimed land at the Somerset site is now used or is useful for farming? Pastureland?

      None. See answer to question 6.

   8. Will you agree to allow an independent evaluation in terms of agricultural potential of reclaimed land at your current Somerset facility?

      This is not relevant and would be of no benefit. In that our predecessor did not save topsoil for reclamation purposes, the potential of our land will be limited for agricultural purposes. In any case, our reclamation emphasis will be on wildlife habitat and not agriculture.

6. The following questions are being posed to clarify and quantify some of the statements and claims in GS's SUP application.
   1. What is the maximum number of years the site will be operational?

      Our investigation of the Darnell tract under option suggests a minimum reserve life of 15 years. This is based on operation at full plant production capacity. The actual life of the reserve will depend on the future success of the plant and its actual production.

   2. What is the specific plan and schedule to reclaim the land here once you are finished mining it?

      Reclamation will meet or exceed all requirements. State regulations stipulate that final reclamation be started within 12 months of completion of mining, or at any time the mine is inactive for more than a 12 month period. To enhance the future value and utility of our property, the final grading will be aimed at blending with adjoining properties. The specific plan will be tailored to a future land use that will be compatible with the prevailing land use of the surrounding area at the time reclamation is completed.

   3. We have found at least one other community where GS's reclamation effort has been lax; how do we ensure this does not happen at the Barboursville site?

      We have never in the history of our company failed to meet any reclamation requirements. General Shale participates in a reclamation fund administered by the Virginia Department of Mines, Minerals and Energy. This guarantees the reclamation of our mine sites regardless of any circumstance. Our privilege to participate in this fund is a result of our good performance record. In addition, our company accrues a monetary reserve for reclamation, which is based on the amount of material mined. Failure to meet our reclamation requirements in Virginia, or in any other state, would jeapordize our ability to obtain mining permits and approvals. Without these we could not continue in the brick production business.

   4. Will you guarantee that at the proposed site in Barboursville:
      1. You will not attempt to expand mining - mining more land than currently designated on SUP application, mining deeper, blasting, further processing.

         Yes, we consider these to be firm commitments.

      2. You will use ONLY rubber-tired vehicles (i.e., no track vehicles).

         No. Some tracked equipment will be required.

      3. The area will only be accessed specifically as described in the SUP?

         Yes.

      4. You will not attempt to build a plant to process the raw material into brick.

         Yes.

      5. You will not truck water out of the proposed site to use at other sites.

         Yes.

   5. What does "daylight hours" mean? Will there be mining on the weekends or on summer nights to make up production for bad weather conditions?

      We consider "daylight hours" to be from sunrise to sunset. Mining will never be conducted on Sunday or at night. In that mining will be done during a short period each summer, there will be no need to work overtime hours to make up for bad weather conditions.

7. The following questions are being posed to quantify the use of well water at the site and to ensure there is a plan if contamination occurs.
   1. How much water will it take to wash the 30 to 54 trucks per day reflected in the SUP before they leave the site?

      A truck wash is being provided to assure that trucks to not leave the site with muddy wheels. We will provide an improved area for truck loading so that they will normally not get muddy. The need for wheel washing will be infrequent and due to unusual circumstances. At other similar locations, this average is 300 gallons per day.

   2. How much water to keep the dust down?

      Water for dust control will come from the mine operation's sediment ponds, not from the water well. The actual amount will depend upon weather conditions.

   3. Will this water be drawn from drilled well(s)?

      Only truck tire wash water will come from the well. Dust control water will not.

   4. Who studied soil conditions? What are their credentials and are they neutral?

      The well location will be outside the area to be disturbed by mining activity. The well will be drilled by a licensed contractor and comply with all applicable rules and regulations.

   5. What are procedures for monitoring ground water conditions and what regulations (or criteria) will be followed in terms of testing?

      The well will be drilled and maintained to meet all requirements. This well will have no more potential to contaminate ground water than any other well in the area.

   6. What is the plan if ground water is contaminated by mining operations?

      See answer to Question 4 of Section C.

8. General Questions.
   1. Will you commit in plan to approximate locations of buffers and plantings?

      Yes. We will also continue to work with adjacent property owners in future to try to satisfy their needs.

   2. Will you agree to an independent evaluation of reclaimed land and plan conformity as you actively mine the new site?

      This is a matter that is regulated by the Virginia Department of Mines, Minerals, and Energy. An independent evaluation would not be appropriate. We will consult with the local Farm Service Agency office and the state wildlife officers for advice on seeding and planting.

   3. Will you agree to adjacent property owners' announced access to your site during normal business hours to evaluate conformity to plans and objectives as stated in final version of SUP?

      We agree to provide an opportunity to adjacent landowners to visit our operation at any reasonable time. Determination of our compliance with approved permits, plans, regulations, etc. is a matter for the appropriate county and state officials.

   4. Given the proximity of families, children and pets to the site how will you secure the site to prevent access?

      All existing fences will be maintained. Additional fences and gates will be provided as needed. Signs will be posted to indicate our ownership of the property, that it is an active mining operation, and that trespassing is not permitted.

   5. What recourse does the County / Community have to ensure you will abide by what is proposed in final plan?

      This question would be better addressed by the proper county authorities. We do value our relationship with the county and community and will strive to work effectively with both and honor all commitments we have made in this regard.

   6. Our research has found that there is a possibility that there are uranium deposits in and around Barboursville. What guarantees do we have that you will not expose these uranium deposits? What plans do you have in place to monitor for exposed uranium deposits and/or radiation levels?

      Past investigation of Virginia Triassic age basins has indicated that uranium deposits do exist. Their occurrence is in the Culpepper and Danville basins. The occurrence is associated with secondary mineralization along basin boundary faults.

      The Darnell tract is located within the Barboursville Basin. No uranium has been identified in this basin. This tract is also located well away from any basin boundary faults. Our own drilling and site investigations indicate nothing anomalous or that would indicate anything other than a normal shale deposit.