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Thalle Industries, Inc.

July 30, 2003

STATE OF NEW YORK
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
COMBINED NOTICE OF COMPLETE APPLICATION AND
ACCEPTANCE OF DRAFT EIS, AND
NOTICE OF LEGISLATIVE/SEQRA HEARING AND ISSUES CONFERENCE

APPLICANT: THALLE INDUSTRIES, INC., 172 Route 9, Fishkill, New York, 12524.

PROJECT APPLICATION NUMBER: 3-1330-00049-02001.

PROJECT AND LOCATION: The Applicant, Thalle Industries, has submitted applications to expand its existing rock quarry mine which is located on the east side of Route 9 approximately 1.8 miles south of Interstate 84, in the Town of Fishkill, Dutchess County. The Applicant proposes to expand its rock quarry mining operation by 29 acres immediately east and south of the existing, operating mining site. About 13.4 million tons of rock would be mined within the expansion area in a four-phase sequence over an estimated period of 38 years. The Applicant proposes to use a bench design with 25-foot-high faces and 20-foot-wide benches. A portable primary crusher would be located at the working face of the expansion area, and covered conveyors would be used to transport crushed stone back to the existing mineral processing area.

PERMITS REQUESTED: The Applicant is requesting a mined land reclamation permit pursuant to Environmental Conservation Law (ECL) Article 23, Title 27; a State Pollutant Discharge Elimination System (SPDES) permit pursuant to ECL Article 17, Titles 7 and 8; and an air pollution control permit pursuant to ECL Article 19. The SPDES permit is required in relation to the point discharge of stormwater into an unnamed tributary of Clove Creek at two locations within the northerly section of the existing mine, and the relocation of a portion of an intermittent tributary of Clove Creek within the expansion area. The air pollution control permit, an Air State Facility permit, would regulate air emissions from all sources at the site, including an existing aggregate processing facility and asphalt plant. The proposed 29-acre expansion would not alter the operation of the asphalt plant. However, the Applicant has proposed the installation of a new portable primary crusher at the working face of the quarry expansion and the use of a series of conveyor belts to transport the crushed rock to the existing processing area. The crusher would be powered by a diesel generator.

VARIANCE REQUESTED: In conjunction with its mining permit application, the Applicant requests a variance from the minimum setback requirements of Section 422.2(c)(3)(iii) of Title 6 of the Official Compilation of Codes, Rules and Regulations of the State of New York [6 NYCRR 422.2(c)(3)(iii)] . The variance request, dated August 31, 2002, is presented in the December 2002 Draft Environmental Impact Statement (EIS) for this project, and is subject to review pursuant to 6 NYCRR 422.1(f).

AIR EMISSION CAPS: The Applicant has agreed to limit facility-wide emissions from particulates (as PM-10), oxides of nitrogen (NOx) and carbon monoxide (CO) to less than 100 tons per rolling 12-month period. With these emission caps, the facility would not be a major stationary source requiring a federal air permit pursuant to Title V of the Clean Air Act and 6 NYCRR Subpart 201-6. Instead, the facility would be eligible for an air state facility permit pursuant to 6 NYCRR Subpart 201-5. Compliance with the emission caps would be monitored by limiting the aggregate plant's production to 2,142,000 tons per rolling 12-month period, limiting the asphalt plant's production to 1,200,000 tons per rolling 12-month period, and limiting the hours of operation of the generator for the portable crusher to 6,000 hours per rolling 12-month period. The Applicant would annually certify that these limits have not been exceeded.

STATE ENVIRONMENTAL QUALITY REVIEW ACT (SEQRA) STATUS: Pursuant to ECL Article 8 and 6 NYCRR Part 617, Staff of the New York State Department of Environmental Conservation (the Department) has determined that the Draft EIS for the proposed mine expansion is complete and has accepted it for review as part of the permit application. On April 15, 1998, the Department, as lead agency for SEQRA review, issued a Positive Declaration, having determined that the expansion project would have a significant effect on the environment and that a Draft EIS should be prepared. A public scoping meeting was held on October 29, 1998. Based on the Applicant's subsequent modification of the project, an amended Positive Declaration was issued on July 24, 2000. The Department accepted a scope of issues dated April 5, 2001.

NOTICE OF COMPLETE APPLICATION: Department Staff has determined that the permit application is complete for the purpose of commencing review. This does not prevent the Department from requiring supplementation during the course of review in order to enable it to make findings and determinations that are required by law.

TENTATIVE STAFF POSITION: Department Staff has determined that the proposed project meets all criteria for the approvals requested by the Applicant, provided the project goes forward consistent with the terms and conditions of draft permits that Staff has prepared. However, based on its review of public comments that are received in response to this notice, Department Staff reserves the right to re-evaluate its position, or to recommend changes to the draft permits. Department Staff's draft mining, SPDES and air permits are available for public review as discussed below.

LEGISLATIVE/SEQRA HEARING: Pursuant to 6 NYCRR 617.9(a)(4) and 624.4(a), a combined SEQRA and Department legislative hearing session on the application, the Draft EIS, and the draft permits will be held before Department Administrative Law Judge (ALJ) Edward Buhrmaster. The hearing, to receive unsworn statements from the public, will be held at 7:00 P.M. on September 9, 2003, at the FISHKILL TOWN HALL, 807 ROUTE 52, FISHKILL, NEW YORK. All persons, organizations, corporations or government agencies which may be affected by the proposed mine expansion are invited to attend the hearing and to submit oral or written comments. While it is not necessary to file in advance to speak at the hearing, lengthy comments should be submitted in writing and summarized for oral presentation. Reasonable time limits may be set for each speaker as necessary to afford all attendees an opportunity to be heard. The hearing location is fully accessible to persons with mobility impairments. Interpreter services shall be made available to deaf persons at no charge upon written request to the ALJ at least 10 days prior to the hearing. Written comments on the application, the Draft EIS, and the draft permits may be mailed to ALJ Buhrmaster at the Department's Office of Hearings and Mediation Services, 1st Floor, 625 Broadway, Albany, New York, 12233-1550, and will be considered equally with the oral comments provided they are postmarked no later than September 19, 2003.

ISSUES CONFERENCE: Pursuant to 6 NYCRR 624.4(b), an issues conference will be held before ALJ Buhrmaster at the FISHKILL TOWN HALL, 807 ROUTE 52, FISHKILL, NEW YORK. It will begin at 10:00 A.M. on September 30, 2003, and continue throughout the day and on successive days through October 3, 2003, as necessary. The issues conference will be held to determine party status for any person or organization that has properly filed (as indicated below) and to narrow and define those issues, if any, which will require adjudication concerning the permit application, the Draft EIS, and the terms of the draft permits. Participation at the issues conference shall be limited to Department Staff, the Applicant, and those persons or organizations requesting party status. Following the issues conference, the participants will be advised of the ALJ's rulings as to party status and issues, and as to whether an adjudicatory hearing will be scheduled for a later date. The ALJ's determination whether to conduct an adjudicatory hearing shall be based on whether issues proposed at the conference are substantive and significant, in accordance with 6 NYCRR 624.4(c). Only those persons granted party status may participate in any adjudicatory hearing that takes place. If there are no filings for party status, or if any filed objections are withdrawn and all proposed issues are satisfactorily resolved before the issues conference, the conference will be canceled and no adjudicatory hearing will be necessary.

FILINGS FOR PARTY STATUS AND PROPOSED ISSUES: Party status to participate in the issues conference and any subsequent adjudicatory hearing will be accorded only to those persons who file a written petition requesting party status pursuant to 6 NYCRR 624.4(c) and 624.5. Mere opposition to the project is not a sufficient basis to be granted party status. A petition must fully identify the proposed party and the name(s) of the person or persons who will represent the party, the petitioner's environmental interest in the proceeding, any interest relating to statutes administered by the Department that are relevant to the project, whether the petition is for full party or amicus status, and the precise grounds for opposition or support. If a petitioner seeks full party status, the petition must identify an issue for adjudication which could result in permit denial, major modification of the project or the imposition of significant permit conditions different from or in addition to those proposed in the Department's draft permits. Petitioners must identify specific legal requirements which they assert would not be met and fully set forth the reasons for their conclusions. Also, petitioners must identify the witnesses they would present at an adjudicatory hearing and the nature of evidence each witness would present. If a petitioner intends to rely upon expert testimony, the petitioner must identify the name of each expert, that person's qualifications, a summary of the subject matter on which the expert is offered, and a summary of the expert's opinions as well as the facts upon which those opinions are based. If a petitioner seeks amicus status, the petition must identify the nature of the legal and policy issue(s) to be briefed which meet the criteria set forth in 6 NYCRR 624.4(c), and provide a statement explaining why the petitioner is in a special position with respect to the identified issue(s). Persons having similar interests are encouraged to consolidate their filings. ALL PETITIONS REQUESTING PARTY STATUS TO PARTICIPATE AT THE ADJUDICATORY HEARING MUST BE ADDRESSED TO ALJ EDWARD BUHRMASTER AND RECEIVED AT THE DEPARTMENT'S OFFICE OF HEARINGS AND MEDIATION SERVICES NO LATER THAN 2:00 P.M. ON SEPTEMBER 22, 2003. Address all petitions to Edward Buhrmaster, Administrative Law Judge, New York State Department of Environmental Conservation, Office of Hearings and Mediation Services, 1st Floor, 625 Broadway, Albany, New York, 12233-1550. At the same time and in the same manner that the petition is furnished to the ALJ, a copy of the petition must be furnished to the Applicant's attorney, Kevin Brown, at Devorsetz, Stinziano, Gilberti, Heintz and Smith, P.C., 555 East Genesee Street, Syracuse, New York, 13202-2159, and to Department Staff's attorney, Jonah Triebwasser, Assistant Regional Attorney, New York State Department of Environmental Conservation Region 3, 21 South Putt Corners Road, New Paltz, New York, 12561. Electronic filings and service by fax will not be accepted. Any questions about filing requirements or other hearing procedures may be addressed to ALJ Buhrmaster by telephone at (518)402-9003.

STATUTORY AND REGULATORY PROVISIONS: This application is being processed pursuant to ECL Article 3, Title 3 (General Functions), Article 8 (State Environmental Quality Review), Article 17 (Water Pollution Control), Article 19 (Air Pollution Control) and Article 23 (Mineral Resources), and also pursuant to 6 NYCRR Part 201 (Air Permits and Registrations), Parts 420 to 425 (Mineral Resources), Part 617 (State Environmental Quality Review), Part 621 (Uniform Procedures) and Part 624 (Permit Hearing Process).

STATE HISTORIC PRESERVATION ACT (SHPA) DETERMINATIONS: A cultural resources survey has been completed. Based on the information provided in the survey report, the New York State Office of Parks, Recreation and Historic Preservation (OPRHP) has determined that the proposed activity would have no impact on registered or eligible archaeological sites or historic structures. No further review in accordance with SHPA is required.

COASTAL MANAGEMENT: The project site is not located in a coastal management area and is not subject to the Waterfront Revitalization and Coastal Resources Act.

DOCUMENT AVAILABILITY: A copy of the Draft EIS (which includes the required permit applications) and the three permits drafted by Department Staff is available for review at the Department's Office of Hearings and Mediation Services located at 625 Broadway in Albany. Also, copies of these documents may be reviewed at these additional locations.

New York State Department of Environmental Conservation
Region 3 Office
21 South Putt Corners Road
New Paltz, New York 12561-1696
Contact: Michael D. Merriman
Telephone (845)256-3165 (to schedule an appointment)
Fishkill Town Hall
807 Route 52
Fishkill, New York 12524-3110
Contact: Supervisor; Telephone (845)831-7800

Blodgett Memorial Library
37 Broad Street
Fishkill, New York 12524
Contact: Librarian; Telephone (845)896-9215

James T. McClymonds
Chief Administrative Law Judge
Albany, New York
July 30, 2003

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