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HomeMy WebLinkAbout5.b. Request by Dakota Aggregates for an annual renewal of a Large Scale Mineral Extraction Permit for 2018 EXECUTIVE SUMMARY Planning Commission Meeting Date: December 18, 2017 Tentative City Council Meeting Date: January 16, 2018 AGENDA ITEM: Case 17-46-ME Request by Dakota Aggregates to Renew their Large Scale Mineral Extraction Permit through 2018 AGENDA SECTION: Public Hearing PREPARED BY: Kyle Klatt, Senior Planner AGENDA NO. 5.b. ATTACHMENTS: Location Map; Draft 2017 Mineral Extraction Permit; Application Narrative; Public Comment Letter, Overall Phasing Map; 2018 Sub-Phase Map; Mining Area – North; Mining Area – South; North Processing Equipment Location Map; Dakota Aggregates Noise Monitoring Report with Monitoring Location Map, Photo of Equipment, and Noise Charts; Aerial Photos; Dakota Aggregates Informational Booklet APPROVED BY: K.L. RECOMMENDED ACTION: Motion to recommend the City Council renew the Dakota Aggregates Large Scale Mineral Extraction Permit for 2018, subject to the terms and conditions in the attached 2018 Draft Conditions for Mineral Extraction Permit ISSUE Dakota Aggregates has applied for the annual renewal of their large scale mineral extraction permit (LSMEP) on the UMore property. An annual operating permit is required for all gravel operations within the City, and the Dakota Aggregates permit was last renewed in January 2017. None of the ancillary uses, including the aggregate processing facilities, concrete product casting yard and concrete and asphalt production are due for renewal this year. Due to the interconnected nature of the mineral extraction and processing activities taking place on the site, any concerns with the other activities may be reviewed as part of the LSMEP discussion. For 2018, Dakota Aggregates is proposing to expand the southern mining area by 11 acres and will expand into portions of six new subphases in the northern mining area. Expansion in the northern mining area coincides with completion of reclamation in earlier sub-phases. 2 SUMMARY Applicant: Dakota Aggregates, LLC, 2025 Center Pointe Boulevard Suite 300, Mendota Heights, MN Property Owner: University of Minnesota (UMore Development, LLC), 1300 South 2nd Street Suite 208, Minneapolis, MN Location: Northwest corner of County Road 46 and Station Trail; and ¼ mile south of County Road 42 (active mining areas) Mining area in acres: 142.35-acre total area; 68.18 acres about ¼ mile south of County Road 42 (Dry Mining) and 74.47 acres at the northwest corner of County Road 46 and Station Trail (Dry/Wet Mining). Comp Plan & Zoning: Agricultural Research Extraction progress: 10 Phases (5 partial) of 16 (approximately 15% complete). Nature of request: Annual renewal. Legal Authority The large scale mineral extraction renewal approval is a quasi-judicial action, meaning that if the application meets the City Code, the large scale mineral extraction permit conditions and interim use permit regulations, then the large scale mineral extraction renewal must be approved. Staff supports approval of the large scale mineral extraction renewal and finds that it is substantially in conformance with the approved large scale mineral extraction permit and the interim use permit regulations with recommended conditions. The detailed analysis of this finding is provided below. In accordance with the Zoning Ordinance, the purpose of the annual operating permit “is to provide an opportunity for the city council to review the operation of the mine, gather public comment on the operation, modify any permit conditions as necessary to address adverse impacts that arise from the operation, and revise the phases and/or subphases of the mine. The large scale mineral extraction interim use permit provides a zoning basis for the mine provided the city issues an annual operating permit”. 3 Background The City of Rosemount approved a Large Scale Mineral Extraction Permit for Dakota Aggregates in late 2012. This action established the overall zoning permit for the mining and extraction activities that were planned for the property. Since the initial site approval, the applicant (or another parties working with the applicant) has brought forward requests for the various interim uses allowed under the ordinance and mining permit. The applicant has also received approval for the annual renewal of the mineral extraction use in subsequent years. In order to clarify the approvals that have been granted for the site, staff prepared the following updated summary chart, with the annual reviews highlighted: Permit Date Issued Term (yrs) Notes/Comment Large Scale Mineral Extraction 12/18/12 40 Initial IUP for entire site (northern dry mining area to be completed by 2028) LSMEP Annual Permit 12/18/12 1 Annual Permit for 2013 Aggregate Processing IUP 12/18/12 3 Interim use for aggregate processing and recycled aggregate processing LSMEP Renewal 12/17/13 1 Annual Permit for 2014 Primary Ready-Mix Concrete Plant IUP 5/20/14 10 Enclosed facility within the approved auxiliary use area Seasonal Ready-Mix Concrete Plant IUP 5/20/14 10 Within same area as the primary plant LSMEP Renewal 11/18/2014 1 Annual Permit for 2015. Extended hours approved with permit Aggregate Processing IUP 11/18/14 5 Interim use for aggregate processing and recycled aggregate processing – extension of original permit. Extended hours approved with permit Wells Concrete Casting Facility 12/16/15 30 Interim use for a concrete casting facility within the approved auxiliary use area LSMEP Renewal 3/1/16 1 Annual Permit for 2016, conducted review of sound issues LSMEP Renewal 1/17/17 1 Annual Permit for 2017 LSMEP Renewal* 1/16/18* 1 Annual Permit for 2018 * Permit currently under review The current request is specific to the annual renewal of the large scale mineral extraction permit. The other auxiliary uses identified in the above chart have been approved or renewed by the City and are operating within their approved time frames and in compliance with approval conditions. As part of the current renewal application, the applicant is not requesting any changes to the general terms and conditions of the mining activity, including the hours of operation approved with previous permits. The original 2012 permit allowed truck loading and hauling within the ancillary use area for 24 hours, seven days a week. Loading and hauling in the north area is limited to M-F 6-10 and Saturday 10-10; however, 24 hours is permitted for up to 5 public projects per year. The City later approved 24-hour operations for mineral extraction activities in the north and south mining areas starting in 2014; therefore, Dakota Aggregates has been operating with the same operating hours for the past three years. The following is a brief summary of the operating hours that have either been approved with previous permits. The current request is consistent with the hours of operation approved since 2014. 4 Year Activity Hours Notes 2014-2018* Wet/Dry Mining including conveyor system (both north and south mines) 24 hours/7 days a week 2014-2018* Loading and Hauling (north mining area) M-F 6-10 Sat. 7-7 24 hour operation allowed for no more than 5 public projects (MnDOT) per year 2015-2019 Aggregate Processing (located in south ancillary use area) 24 hours/7 days a week 2015-2019 Loading and Hauling (southern processing area and south mine) 24 hours/7 days a week Limited to TH46 * Request for same hours in 2018 as 2014-17. One of the key points from this chart is that even with the 24 hour time period for mining and processing at the site, the loading and hauling of trucks from the northern dry-mining area is still limited to weekday and weekend hours, with the exception of up to five public projects per year. In that instance they are permitted a 24 hour operation. In 2017, staff was notified that one public project would be hauling over a 24-hour period. This occurred from March 6, 2017 until May 17, 2017 and was associated with the Nine Mile Creek Bridge/TH 169 MnDOT project. As in previous years, the applicant is requesting modifications to the permit for 2018 in order to expand the active mining areas on the site to account for reclamation work that has been completed in earlier phases. The updated permit would allow active mining in the north dry-mining area to expand into new portions of phases 4, 5, 6, and 7 and a very small portion of phase 8, in addition to continuing work in phase 2. All active mining work is complete in phase 1, a small portion of which is currently being used for sand storage. The applicant is also proposing a slight modification to the southern mining area to conduct active mining of 11 acres within sub-phase 10a, which is immediately north of the phase 2 project area. With the newly excavated areas, the applicant will still be under the maximum allowed area of disturbance in any individual project phase. Staff has reviewed the operating permit conditions for 2017 and is recommending minor amendments in order to update this document for 2018 based on the applicant’s recent submission. Please note that the 24 hour allowance for the aggregate processing activity was approved by the City as part of a five-year interim use permit that is set to expire/be renewed in 2019, and is regulated under the terms of a separate permit with the City, as are the cement casting yard and concrete and asphalt production areas. MINING OPERATION – UPDATE Dakota Aggregates commenced its mining operation in 2013 and has received subsequent annual operating permits through 2017. Upon approval of the initial permit, the applicant began working in portions of the first two phases of both the north dry mining and south dry/wet mining areas identified on the overall site plan. This work included removing aggregate materials from mining areas and placing Class 5 material on the floor of the aggregate processing area. Early project stages also included removal and stockpiling of the topsoil on the site, a large portion of which was used to create the extensive berm system along TH46, TH42, and Biscayne Avenue. 5 As northern mining has progressed over the last few years, the active mining areas have moved further to the south and east. The applicant also elected to start work in the western project phases and move easterly as much as possible to keep moving the operating equipment further away from residential neighborhoods north and northwest of Highway 42. The mining has also been taking place long enough that larger portions of the site have been reclaimed and are no longer part of the active mining areas. There is still a large amount of stockpiled sand in the eastern part of phase 2 that is being gradually reduced over time. This pile as of late fall is comprised of approximately 900,000 tons of material. For the current operating year, from January 1 through October 29 of 2017, Dakota Aggregates removed and paid aggregate taxes on 300,000 tons of material trucked directly from the northern dry mining area. There was 1,560,000 tons of material from the southern wet/dry mining and processing area, which would include material from the north mine that was processed in the southern ancillary use area. The applicant has also indicted that as of October 29, 2016 there were 900,000 tons of aggregate stockpile (sand) in the northern mining area, and 463,350 tons of aggregate stockpiles (of various materials as broken out in the application materials) in the southern area. In addition, the applicant has reported that there were 87,700 tons of recycled aggregate materials sold during the same time frame, with 65,040 tons of this material being stockpiled on the site. The above numbers represent an increase across the board as compared to the amounts reported for last year, and demonstrate that there continues to be a strong demand for aggregate products from the site. The Large Scale Mineral Extraction Ordinance allows two separate areas for extraction operations of no more than 80 acres each. For 2018, the applicant is proposing to extend the North Dry Mining Area by an additional 39.13 acres into the southern portions of sub-phases 4B and 5A, all of sub- phases 6A and 7A, and very small portions of 5B, 6B, 7B, and 8A. This expansion is off-set by the completion of 19.89 acres of reclamation (mostly in phase 1), which results in an active mining area of 68.18 acres for 2018. As reclaiming continues in earlier phases, the applicant will be able to continue expanding into new phases providing the extraction operations do not exceed 80 acres (as projected for 2018, the applicant will be 11.8 acres below the maximum extraction area permitted). Most of the material from the north is conveyed to the south processing area, meaning that there is less truck traffic out onto County Road 42 than was initially anticipated. Please note that the applicant continues to indicate that work in the North Dry Mining Area is progressing ahead of schedule, and they do not anticipate any difficulties completing mining in the northern area before the 2028 deadline. The renewal application indicates that there will be slight expansion of the extraction operations in the South Dry/Wet Mining Area (southern mining area) in 2018. Active mining will continue within Phases 1 and 2 over a total area of 63.47 acres, with an additional 11 aces, within sub-phase 10A, being added to the extraction operations. By actively mining in sub-phase 10A, the overall operations are in the southern mining area will be 74.47 acres, which is still 5.5 acres below the maximum allowance. The Dry/Wet Mining Sub-phases are located on the northwest corner of County Road 46 and Station Trail and all trucks entering and exiting this area access County Road 46 at Station Trail. All activity in the Dry/Wet Mining area in 2018 is planned to occur outside and above the groundwater elevation. The lowest portion of the mine is currently about 60 vertical feet deep and, and the applicant is working west while maintaining this depth. 6 In the future, once the entire area of these four Dry/Wet Mining sub-phases are within a two feet of the groundwater, Dakota Aggregates will bring in a barge and dragline to begin mining below the groundwater elevation. The rest of the Dry/Wet Mining phases will be mined with the barge and dragline. The annual operating permit for the property notes that mining within any phase that will expose groundwater will not be permitted before borings are conducted in the deepest part of the proposed lake to confirm a minimum separation of 15 feet between lowest mining elevation and bedrock. The applicant completed these borings in the spring of 2017, with the intent of commencing mining below groundwater elevations sometime in 2019. The findings of the boring work will be included in the report due January 2018, which is annually reviewed by our consultant WSP (formerly LHG). Mining is otherwise allowed to occur within two feet of groundwater until the wet mining commences. As indicated, monitoring must be conducted to establish the pre-mining groundwater characteristics prior to mining wet mining begins as required under condition JJ of the operating permit. A report is due by January 31st for the preceding year, and historically the City has retained Leggette, Brashears & Graham, Inc. (which is now part of WSP) to evaluate the groundwater monitoring and sampling being conducted by American Engineering Testing on behalf of the applicant. In its review of the testing completed in 2016, LB&G recommended some changes to the frequency of certain sampling, and all testing will now occur on either an annual or semi-annual basis depending on the type of analysis being performed. As of early 2017, site activities were performed in accordance with the WMP and met the conditions of the mining permit. The testing of groundwater at the UMore site is an ongoing requirement for Dakota Aggregates, and the City will again be asking LB&G to review the 2017, report upon receipt. Dakota Aggregates was permitted in 2017 for North Dry Mining sub-phases 1A, 1B, 1C, 2A, 2B, 2C, 2D, 4B, 5A, and 6A. For 2018, the applicant is proposing to add sub-phases 5B, 6A, 6B, 7A, 7B, and 8A to this list, while removing sub-phases 1B and 1C since reclamation work has been completed in these areas. The mining floor is approximately at a depth of 60 feet and work will continue west and south while maintaining the 60 foot depth. The North Dry Mining area will continue to access County Road 42 through a haul road running west to east along the former rail line about a ¼ mile south of County Road 42, then north along Akron Avenue to the intersection with County Road 42. This road is used less frequently than County Road 46, as most of the aggregate is being conveyed to the south for processing and then transported off-site from there via County Road 46. Last year, 300,000 tons out of the overall 1,947,700 tons of material sold by Dakota Aggregates was trucked out from the northern mining area. With the discussion about development in the area south and west of DCTC, future discussions about the haul road location will be needed. As noted during previous reviews, the 60 foot depth of the north mining area is about 30 feet deeper than the approved reclamation plan. The current bottom elevation of the north mining area is 882.5 feet. A former test hole in the bottom of the north mining area indicated the groundwater elevation at 879.3 feet, which maintains the minimum required separation under the operating permit. The current operating permit includes a condition that limits the north mining to a depth of 882 feet, and this condition is proposed to remain in effect for 2018. Dakota Aggregates will need to haul-back material from construction projects or re-deposit their sand to achieve the reclamation height. This reclamation work has been completed in two of the northern sub-phases and will continue into additional sub-phases as mining progresses further south and west. 7 Dakota Aggregates was permitted in 2017 for Dry/Wet Mining sub-phases 1A, 1B, 2A and 2B; and is proposing to continue mining in those same sub-phases plus sub-phase 10A in 2018. Through October 29, 2017, 1,560,000 tons of aggregate material were sold and trucked off site via CSAH 46, which is an increase of 148,000 tons from the same time period last year. In 2018, material sales include sales to the concrete and asphalt plants located within the AUF. The berms around the south mining area and the AUF have been constructed, seeded and vegetated, and all vegetation appears to be doing well. This berm was expanded further to the west along CSAH 46 in 2017 to help provide additional screening and buffering between the highway and mining operations. In 2016 the applicant completed construction of the northern berm to its westernmost extension at Biscayne Avenue as required under the operating permit. The overall height of the berm has been increased from the original permit to 30 feet, in part to help provide further mitigation for noise and visual impacts from the mining activity. The berm has also been extended further to the south along Biscayne Avenue, and as of this fall, has been constructed to a point just south of the Boulder Trail/Biscayne Avenue intersection. An operating permit condition concerning the northern berm continues to require Dakota Aggregates to maintain this berm at a height of 30 feet. The berm is expected to remain in place until development occurs in the northwestern portion of the UMore site. Mining Concerns and Issues One of the primary issues discussed with recent annual reviews for Dakota Aggregates is concerning noise generated by the facility. In 2016, the applicant hired a sound engineering consultant to perform an analysis of the mining operation and to monitor the sound levels in the surrounding area. Subsequent to the sound study, Dakota Aggregates implemented a number of policies to reduce or eliminate the level of sound being generated by the mining operation. Some of these changes included the following: • Implementing a series of mechanical improvements to equipment and machinery to minimize the sound being generated on the site. Some of these changes included adding sound dampening liners to machines that process aggregate materials, changing warning horns on equipment, reducing curves in the conveyor line to reduce tumbling noise, and other similar measures. • Finishing construction of a berm along the northern and western boundaries of the mine, and making the berm higher to provide a higher barrier for sound leaving the site. • Moving mining equipment to the bottom portion of the mine and moving it close to the wall of the excavation pit to provide the maximum amount of sound dampening possible. • Accelerating the projected completion of project phases closest to residential neighborhoods north of Highway 42. • Providing direction to machine and equipment operators to address mechanical issues (i.e. bearings that are making noise because they need lubrication) in a timely manner. 8 As one of the conditions attached to the 2017 permit renewal by the City, the applicant was required to conduct sound testing in the neighborhood north of the mining area to assess sound from mining activities by June 1, 2017. The monitoring was performed in late May of this year, and the summary and graphical results provided by Dakota Aggregates’ Environmental Manager are attached for review. The report tracks the sound levels reported by the monitoring equipment over a period of time, and compares these levels to those allowed under MPCA noise standards. As noted in the report, there were five periods of non-compliance; however, four of these spikes occurred during times when the mine was not in operation. The other event occurred on a Monday evening at 8:00 p.m. and lasted for 8 minutes. The applicant notes that nothing unusual occurred in the mine during this time, and that the sound monitor may have picked up noise occurring in the neighborhood rather than from the mining operation. One of the challenges with conducting sound testing in any location is that the sound equipment will track all noise being generated around the test site and not just sound coming from a specific source. In this case, during large portions of the day, the noise levels generated from traffic along Highway 42 exceed any sound coming from the mining operation. At other times, weather events, construction work, or other sources will generate loud sounds that have no relationship to the mine. In general, monitoring can help provide a snapshot of the noise in a neighborhood and what is happening during a given period of time. It is assumed that as traffic along Hwy 42 diminishes, the noise shown by the monitoring is attributable to the mine or neighborhood activities. The results provided by the applicant generally conform to the modeling done by the sound consultant in 2016, and specifically demonstrate that the mine is able to function in compliance with applicable sound regulations. In addition to the formal monitoring performed by the applicant, Staff would also like to note that there were two specific complaints concerning noise from the mining operation submitted to the City in 2017. A quick summary of these complaints is as follows: • The first was a police call to report a disturbance in the north mine area near Bayberry Circle in May of this year. The responding officer noted two slamming sounds from large trucks in the gravel pit while he was on site. • The second complaint also came in to the police department in late September from the Bloomfield concerning a screeching noise coming from the gravel pit. The responding officer visited the site, observed a squeaking/grinding noise, and was informed by one of the workers on the site that they would locate the source of the noise and fix the problem. In response to these two specific complaints, the applicant has indicated that they have a fairly good understanding of what may have caused them. In the first case, dump trucks loading and unloading on the site typically have a metal gate in the back that can slam against the bed of the truck when raised or lowered quickly. In the other instance, the squeaking/grinding sound was being generated by one of the bearings in the conveyor line that was either out of alignment, in need of lubrication, or failing. The applicant has indicated that they will continue to work with the equipment operators on the site to ensure that all machinery and equipment is being run in a manner that does not generate objectionable noise off-site. 9 Since the beginning of 2016, the City has been stressing that residents with noise complaints regarding the Dakota Aggregates operations should call 911 so there is documentation concerning the specific nature of the compliant, the location of the complaint, and time when it was observed. The police department has also been directed to notify the applicant when any loud noises are reported so that problems can be addressed in a timely manner. Over the past two years, the police department has logged a total of three complaints concerning noise from the site. Because noise from the site continues to be one of the more significant concerns with the mining operation, staff is recommending that the noise monitoring continue into 2018, consistent with the work performed this year. Staff has received one comment letter in advance of the meeting from Peter and Martha Magnuson. In their letter, the Magnuson’s question what benefit the City receives from allowing 24 hour operation for the mine, and request that the City limit the hours of operation to 6 a.m. to 10 p.m. In response to the letter, staff would like to point out that there are many different activities taking place within the mining area, some of which were approved to operate for a full 24 hours under the original large scale mineral extraction permit issued in 2012 (such as loading and hauling from the processing area). The applicant has also been able to document that under normal operating conditions the mine will not exceed maximum sound levels as specified in MPCA rules, and has made improvements and adopted practices to minimize the sound leaving the site. It appears that most of the documented complaints are the direct result of operators not following proper procedures for loading and unloading, or relate to equipment maintenance issues. Although no complaints or issues would be ideal, given the size and scale of the mining operation it appears that the applicant is addressing any issues in a timely manner, and outside of a limited number of isolated incidents, has been operating in compliance with all permit conditions. When a situation arises at the mine (like excessive noise levels), it is important for the City to be able to investigate, document, and work with the applicant to address such issues. The most responsive way for the City to handle any complaints is through the police department, which can dispatch an officer very quickly to investigate and evaluate the situation. All of these complaints are tracked through the permitting process, and the City will have a chance to evaluate the type and frequency of issues each year as part of the annual permit review. This process has led to many improvements that have ultimately reduced negative impacts, and has been useful to help avoid smaller problems from becoming a larger City-wide nuisance. Staff continues to encourage residents to call and report all matters of concern, and will continue to document all complaints so that the Planning Commission and City Council may be fully aware of any and all resident concerns in the future. 10 FINAL OBSERVATIONS In reviewing the current operating permit as part of its review, Staff would like to note the following general observations: • The City did not identify any events in 2017 that resulted in the depositing of dirt or debris on any public streets due to the extraction or hauling operations. • The applicant did not request to remove any topsoil from the site in 2017. • Dakota Aggregates did not submit a semi-annual report this year given the short amount of time between the last renewal in January of 2017 and the submission deadline for the current request (November 2017). The City performed an inspection of the site on December 6th after receipt of the attached report; no specific areas of concern were observed during the site inspection. • As part of its reclamation work, the applicant will need to demonstrate that it is in compliance with conditions X and Z of the operating permit concerning minimum reclaimed top soil depth and minimum compaction levels for all fill. • There was no “haul-back” material brought to the site other than recycled products allowed within the processing area. • No “wet” mining has commenced in the southern mining area; however, the applicant has notified the City that it intends to commence this work within two years. RECOMMENDATION Staff recommends that the Planning Commission recommend to the City Council approval of the renewal of the Dakota Aggregates Large Scale Mineral Extraction Permit for 2018. This recommendation is based on the information submitted by the applicant, findings made in this report and the conditions detailed in the attached Large Scale Mineral Extraction Annual Operating Permit Agreement. Dakota Aggregates Property Information 0 1,750 3,500875 ft 0 525 1,050262.5 m 1:19,200 Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification. 2017 2018 Large Scale Mineral Extraction Annual Operating Permit Agreement for Dry/WetNorth Dry Mining Sub-phases 1A, 1B, 1C, 2A, 2B, 2C, 2D, 4B, 5A, 5B, and 6A, 6B, 7A, 7B and 8A; and North DryDry/Wet Mining Sub-phases 1A, 1B, 2AC, and 2D2B and 10A DAKOTA AGGREGATES, LLC A. Dakota Aggregates, LLC (hereinafter "the Operator") signs a written consent to these conditions binding itself and its successors, heirs or assigns to the conditions of said permit. B. The term of the permit shall extend from January 1, 2017 2018 until December 31, 2017 2018 unless revoked prior to that for failure to comply with the permit requirements. C. Mining in Wet/Dry Mining Sub-phases 1A, 1B, 2A, and 2B and 10A may occur 24 hours a day, 7 days a week. D. Mining, screening, and reclamation in North Dry Mining Sub-phases 1A, 1B, 1C, 2A, 2B, 2C, 2D, 4B, 5A, 5B, and 6A, 6B, 7A, 7B, and 8A may occur 24 hours a day, 7 days a week. E. Trucks may haul from North Dry Mining Sub-phases 1A, 1B, 1C, 2A, 2B, 2C, 2D, 4B, 5A, 5B, and 6A, 6B, 7A, 7B, and 8A from 6 a.m. to 10 p.m. Monday through Friday and 7 a.m. and 7 p.m. Saturday , except for hauling outside those hours for the execution of a contract requirement of up to five (5) MnDOT or other public agency roadway construction project. During the execution of the MnDOT or other public contracts, the hauling may occur 24 hours a day, 7 days a week. F. No crushing or washing equipment shall be located or used in the North Dry Mining Sub-phases 1A, 1B, 1C, 2A, 2B, 2C, 2D, 4B, 5A, 5B, and 6A, 6B, 7A, 7B and 8A. G. The North Dry Mining Sub-phases 1B, 2C, 2A, 2B, 2C, 4B, 5A,5B, and 6A, 6B, 7A, 7B, and 8A shall not be mined below the 882 foot elevation. H. Protection equipment that is installed on hauling trucks, such as covers for the truck beds, shall be used while traveling on public roads. Non-use will be considered a violation of the permit condition. I. Trucks shall not use any locally designated road as part of their haul route except for the shortest route between the delivery site and the nearest County, State or U.S. highway. J. Trucks may not be loaded heavier that the public haul roads posted weight restrictions. 2017 2018 Annual Operating Permit Dakota Aggregates, LLC 2 of 6 K. Engineered designs for any reclamation steeper than a 3 to 1 slope must be submitted and approved by the City Engineer before the reclamation can occur. L. A gate and thirty (30) feet of fencing on each side of the gate shall be installed at the Station Trail access. The gate shall be closed and locked when the mining or ancillary uses are not in operation. A knox box or similar devise shall be installed to provide emergency personal access to the key for the lock. M. Conformance with the City Engineer’s Memorandum dated September 20, 2012. N. The University of Minnesota (or designated entity) shall obtain approval and/or concurrence from the MPCA regarding completion of appropriate investigations and/or actions taken in response to identified releases of hazardous substances, pollutants or contaminates as defined under Minn. Statute 115B, and as deemed reasonable and necessary by the MPCA. O. Dakota Aggregates shall clean dirt and debris from streets that has resulted from extraction or hauling operations related to the Mineral Extraction Permit. After Dakota Aggregates has received 24-hour verbal notice, the City will complete or contract to complete the clean-up at Dakota Aggregates’ expense. In the event of a traffic hazard as determined by the City Administrator (or the Administrator’s designee) or Rosemount Police Department, the City may proceed immediately to complete or contract cleanup at Dakota Aggregates’ expense without prior notification. P. No topsoil shall be removed from the site unless Dakota Aggregates can demonstrate that there is topsoil in excess of the amount needed to reclaim the End Use Grading Plan with at least six (6) inches of topsoil. Dakota Aggregates shall take necessary measures to prevent erosion of the stockpiled topsoil. Q. Any costs incurred now or in the future in changing the location of existing public or private utilities including but not limited to pipelines, transmission structures and sewer infrastructure located within the permit area shall be the sole obligation and expense of Dakota Aggregates. R. All costs of processing the permit, including but not limited to planning fees, engineering fees, and legal fees, shall be paid by Dakota Aggregates prior to the issuance of the permit. Dakota Aggregates shall reimburse the City for the cost of periodic inspections by the City Administrator or any other City employee for the purpose of insuring that conditions of the permit are being satisfied. Dakota Aggregates agrees to reimburse the City for any other costs incurred as a result of the granting or enforcing of the permit. S. Dakota Aggregates shall deposit with the Planning Department a surety bond or cash deposit in the amount of Eight Hundred Fifty One Thousand one Hundred Dollars ($851,100) in favor of the City for the cost of restoration, regrading and/or revegetating land disturbed by mining activities and to ensure performance of all 2017 2018 Annual Operating Permit Dakota Aggregates, LLC 3 of 6 requirements of this resolution and City ordinances by Dakota Aggregates. The required surety bonds must be: 1. With good and sufficient surety by a surety company authorized to do business in the State of Minnesota. 2. Satisfactory to the City Attorney in form and substance. 3. Conditioned that Dakota Aggregates will faithfully comply with all the terms, conditions and requirements of the permit; all rules, regulations and requirements pursuant to the permit and as required by the City and all reasonable requirements of the City Administrator (or the Administrator’s designee) or any other City officials. 4. Conditioned that Dakota Aggregates will secure the City and its officers harmless against any and all claims, for which the City, the Council or any City officer may be made liable by reason of any accident or injury to persons or property through the fault of Dakota Aggregates. 5. The surety bond or cash escrow shall remain in effect from January 1, 2017 2018 until July 31, 20182019. Once the interim reclamation grades and vegetation have been established and approved by the City, the bond may be reduced by Five Hundred Sixty Seven Thousand Four Hundred Dollars ($567,400 = 113.48 acres times $5,000 per acre). Once the end use grading grades and vegetation have been established and approved by the City, the bond may be reduced by Two Hundred Eighty Three Thousand Seven Hundred Dollars ($283,700 = 113.48 acres times $2,500 per acre). Upon thirty (30) days’ notice to the permit holder and surety company, the City may reduce or increase the amount of the bond or cash deposit during the term of this permit in order to insure that the City is adequately protected. T. A landscape security of $42,625 (155 trees times $250 per tree times 110%) shall be provided. After the trees have been established, $38,362 (90%) of the landscaping security can be released. The final $4,263 (10%) shall be maintained through the existence of the berm for Dry/Wet Sub-Phase 1A and 2A to ensure that as trees die, that those trees are replaced. The landscaping security shall be in the form of a letter of credit in favor of the City or cash escrow. U. Dakota Aggregates shall furnish a certificate of comprehensive general liability insurance issued by insurers duly licensed within the State of Minnesota in an amount of at least Five Hundred Thousand and no/100 ($500,000.00) Dollars for injury or death of any one person in any one occurrence, and at least One Million Five Hundred Thousand and no/100 ($1,500,000.00) Dollars for injury or death of more than one person arising out of any one occurrence and damage liability in an amount of at least Two Hundred Fifty Thousand and no/100 ($250,000.00) Dollars arising out of any one occurrence. The policy of insurance shall name the City as an additional insured and shall remain in effect from January 1, 2017 2018 until July 31, 20182019. V. Dakota Aggregates shall hold the City harmless from all claims or causes of action that may result from the granting of the permit. Dakota Aggregates shall indemnify the City for all costs, damages, or expenses, including but not limited to attorney's 2017 2018 Annual Operating Permit Dakota Aggregates, LLC 4 of 6 fees that the City may pay or incur in consequence of such claims. W. Dakota Aggregates shall submit to the City semi-annually a written report indicating the amount of material extracted from the site for the prior six-month period. After said written report is submitted, the City shall perform an inspection of the site to confirm compliance with the conditions within the Annual Operating Permit. X. Reclamation requires the replacement of the stockpile of topsoil to the mined area, reseeding, and mulching necessary to re-establish vegetative cover for permanent slope stabilization and erosion control, provided also that the minimum depth of topsoil shall not be less than six (6) inches after reclamation. No restored slopes may exceed the gradients shown on Interim Reclamation Plan. Y. No mining activity will occur within fifteen (15) vertical feet of bedrock. Z. Dakota Aggregates shall compact the entire reclamation site to a minimum compaction of 95% of maximum dry density. AA. If not utilized by the University of Minnesota for agricultural purposes, fully reclaimed areas will be permanently seeded within 14 days of final completion. All disturbed non-operating areas not utilized by the University of Minnesota for agricultural purposes shall be seeded at a minimum of once per year, prior to October 1 with MnDOT seed mix 130B. Operating areas including work faces, material stockpiles, haul roads, staging areas, and active reclamation areas are not required to be seeded. BB. Dakota Aggregates shall submit quarterly to the City documentation of the Barr Engineering, Inc. (or other City approved geotechnical testing firm) environmental and geotechnical testing with documentation verifying the source and quantity of the “haul-back” material. These reports shall be provided within fourteen (14) days after the end of the quarter. CC. Dakota Aggregates shall submit an incidence report to the City within three days of any testing that fails for contamination or hazardous materials, or will not produce a normal moisture-density relationship for compaction. DD. Truck operators within the pit area shall not engage in practices involving slamming tailgates, vibrating boxes, using of “jake” or engine brakes (except in emergency situations), or other such activities that result in excessive noise. EE. Dakota Aggregates shall incorporate best management practices for controlling dust, erosion, noise, and storm water runoff as specified by the Minnesota Pollution Control Agency and the United States Environmental Protection Agency and proposed in the submitted LSME application to the City. FF. Compliance with Dakota County Ordinances No. 110 and 111, as well as all other applicable Federal, Minnesota, Dakota County, and Rosemount regulations. Soil 2017 2018 Annual Operating Permit Dakota Aggregates, LLC 5 of 6 materials in the Property will be managed in accordance with the Minnesota Pollution Control Agency’s Best Management Practices (BMPS) for the Off-Site Reuse of Unregulated Fill. GG. Dakota Aggregates may not assign this permit without written approval of the City. Dakota Aggregates will be responsible for all requirements of this permit and all City ordinances on the licensed premises for the permit period unless Dakota Aggregates gives sixty (60) days prior written notice to the City of termination and surrenders permit to the City. Dakota Aggregates shall identify all Operators prior to their commencement of mineral extraction-related activities in the pit area. The City shall have the authority to cause all mineral extraction activities to cease at any time there is an apparent breach of the terms of this Permit. HH. Dakota Aggregates shall comply with such other requirements of the City Council as it shall from time to time deem proper and necessary for the protection of the citizens and general welfare of the community. II. Dakota Aggregates shall maintain the berm located on the north side of the haul road.to a height of at least 30 feet. JJ. American Engineering Testing, Inc. (AET) shall submit the 2016 2017 Annual Monitoring Report, including all groundwater testing, and submit the report to the City b y January 31, 20172018. Leggette, Brashears, & Graham, Inc. (LBG) shall review the revised report on behalf of the City and has the authority to adjust the frequency of the groundwater sampling based on the 2016 testing results. KK. Dakota Aggregates shall implement the sound mitigation measures as documented in its 2016 Large Scale Mineral Extraction Permit application and referenced in the March 1, 2016 City Council report concerning said application. The applicant will conduct sound testing in the neighborhood north of the mining area to assess sound from mining activities and compare the information to sound projections submitted by AEC by June 1, 20172018. LL. The city of Rosemount shall have the ability to collect independent soil and water samples. MM. Mining within any phase that would expose the groundwater will not be permitted before additional borings are conducted in the deepest areas of the proposed lake to confirm that a minimum of fifteen (15) feet of separation between the mining and the bedrock. Mining can occur within 2 feet of the groundwater prior to testing occurring. 2017 2018 Annual Operating Permit Dakota Aggregates, LLC 6 of 6 IN WITNESS WHEREOF, Dakota Aggregates, LLC, the Operator, hereby consents and agrees to the foregoing conditions of said Annual Operating Permit this _______ day of ______________, 20__. Dakota Aggregates, LLC By:________________________________ Tim Becken, Its Chief Manager STATE OF MINNESOTA ) ) ss COUNTY OF _________ ) The foregoing instrument was acknowledged before me this _________ day of ____________, 20____, by Tim Becken, Chief Manager of Dakota Aggregates, LLC, the Operator, on behalf of the Corporation. ________________________________________ Notary Public AUTUMNCTBANYANTH ST W (CSAH 42)BISCAYNE AVEBISCAYNE AVEBI TTER-SWEETCTBITTE R -S W EETCIRBLOOOMF IELDWAYAUGU S TAWAY STATION TRLBRAZIL AVEAUBURNAVEBLOOOMFIELDPL B L O O M F IE L D C IR 148TH ST W BELMONT TRLBLANCA AVE154TH ST W BOULDER TRL BLOOMFIELDB E L FA S T S T W 140TH ST W BOXWOOD PATHBIRCHBUNRATTY AVEBEECH ST WBRIANBORU AVEAUTUMNWOODC T A ZA LE A B AY B E R RY T R L AVE 160TH ST W (CSAH 46) B E L F A S T BELMONT AUT U MNWOODAVANTI BUSINESSPKWYB A Y B E R R Y BOYSENBERRY CT BLACKBERRY 150151ST CT W ATWOODCIRPATHBLOOMF I E L DBUNDORAN AVEB LUEB ER R YC TC TB I S C A Y NEWAYBROUGHSHANEAVEBAYBERRYAUTUM NW O O DW AYC T A UDOBA NWAYTRL BRENNER CT BOSTONCIR ATWOODCT142NDST W C I RCTWAYB E L L EC T 142N D C T WBREMEN AVEWAYBLARNEYCT BLANCABLOO M F IELD PATH ATWATER WAY CTBIRCHWOODAVECTAVALONPATHLN B E NTLEYBOIS ECIR ST W BELMONT TR 140T H ST W AUBURNAVE AZALEA P A TH140TH ST W AVE160T H ST W (CSA H 46) 145TH ST W AURORA AVE L 147THCT ABBEYFIELDAVEABBEYFIELD CT AILESBURYCT141STST E A D A I R A V E 149TH ST W ALBANYAVEALLINGHAMAVEALMAAVEADELAIDEAVEABERCORNAVE AILESBURY AVE ALDBOROUGHAVEALMA CIR 1370'680'2 134 10 9 5 1187 3456 2 1AUTUMNCTBANYAN TH ST W (CSAH 42)BISCAYNE AVEBISCAYNE AVEBI TTER-SWEETCTBITTE R -S W EETCIRBLOOOMF IELDWAYAUGU S TAWAY STATION TRLBRAZIL AVEAUBURNAVEBLOOOMFIELDPL B L O O M F IE L D C IR 148TH ST W BELMONT TRLBLANCA AVE154TH ST W BOULDER TRL BLOOMFIELDB E L FA S T S T W 140TH ST W BOXWOOD PATHBIRCHBUNRATTY AVEBEECH ST WBRIANBORU AVEAUTUMNWOODC T A ZA LE A B AY B E R RY T R L AVE 160TH ST W (CSAH 46) B E L F A S T BELMONT AUT U MNWOODAVANTI BUSINESSPKWYB A Y B E R R Y BOYSENBERRY CT BLACKBERRY 150151ST CT W ATWOODCIRPATHBLOOMF I E L DBUNDORAN AVEB LUEB ER R YC TC TB I S C A Y NEWAYBROUGHSHANEAVEBAYBERRYAUTUM NW O O DW AYC T A UDOBA NWAYTRL BRENNER CT BOSTONCIR ATWOODCT142NDST W C I RCTWAYB E L L EC T 142N D C T WBREMEN AVEWAYBLARNEYCT BLANCABLOO M F IELD PATH ATWATER WAY CTBIRCHWOODAVECTAVALONPATHLN B E NTLEYBOIS ECIR ST W BELMONT TR 140T H ST W AUBURNAVE AZALEA P A TH140TH ST W AVE160T H ST W (CSA H 46) 145TH ST W AURORA AVE L 147THCT ABBEYFIELDAVEABBEYFIELD CT AILESBURYCT141STST E A D A I R A V E 149TH ST W ALBANYAVEALLINGHAMAVEALMAAVEADELAIDEAVEABERCORNAVE AILESBURY AVE ALDBOROUGHAVEALMA CIR 1370'680'2 134 10 9 5 1187 3456 2 1 Path: T:\GIS\City\Maps\Departmental Maps\CommunityDevelopment\Mining\Mining Phases.mxdMining PhasesBUFFER# Phase DRY WET Feet0 200 400Noise MonitorUMore Noise Monitor Location 25 35 45 55 65 75 85 Sound Intensity [dBA]UMore Sound Data from 5/22/2017 through 5/25/2017 at CR 42 and 145th St W OperatingWeatherL10 Non-ComplianceL50 Non-ComplianceSound DataL10 (Day: 65, Night: 55)L50 (Day: 60, Night: 50) Aerial Image - October 2016 Aerial Image - October 2017