State & Province News

October 2007

State & Province News

by , Executive Editor
 

Alabama

A Baldwin County couple has been indicted on charges of conspiracy and bankruptcy fraud. The Mobile Register reports that Michael and Pamela Hyatt face several additional charges including money laundering and falsification of records. According to a summary of allegations included in the indictment, the couple lied about their income in personal and corporate bankruptcy filings, which began six years ago. It also accuses the couple of failing to list among its assets a bank account opened in the name of Nicholas Hyatt, doing business as Baldwin Aggregates, and to list funds due to another of their companies, P&M Sand and Gravel.

Alaska

In early August, the Matanuska-Susitna Borough Assembly postponed its consideration of a tax on gravel and other natural resources. According to the Anchorage Daily News, revenue from the tax would be dedicated to transportation projects. Borough Finance Director Tammy Clayton told the newspaper that a 25-cent-per-ton gravel tax was estimated to generate about $1 million. After hearing testimony from gravel producers opposed to the measure, assembly members decided to take those concerns into a roundtable format before proceeding. A work session is scheduled for Nov. 6.

Arkansas

The Morning News reports that a controversial quarry slated for the west side of Washington County received preliminary approval, but quarry owners must still acquire right of way on either side of the road leading away from the site before construction plans are approved for the quarry. The county requires a 30-foot right of way on either side of the road. The developer does not currently have that, and it could prohibit the development of the site. Washington County Judge Jerry Hunton told the newspaper that the law required him to approve the project because it meets the county’s minimum standards.

Connecticut

State officials with the Watershed Planning Council condemned legislation that paved the way for Tilcon Connecticut to lease 130 acres of prime watershed land from New Britain for $15 million, The Herald reports. Although they did not condemn the deal itself, officials said that a thorough study would show whether the site would damage the city’s water supply or land. “It should have come to the Water Planning Council, but I would hate to see a good proposal go down just because we weren’t first in the process,” state Department of Public Health Deputy Commissioner Norma Gyle told an audience attending the council’s announcement. Tilcon President Rick Mergens said that until the legislation passed on June 5, it was illegal to execute a deal for the property.

Illinois

At Aggregates Manager press time, the Kendall County Board was debating whether to fight a court decision permitting a third quarry in the southern part of the county. According to the Chicago Sun-Times, the board had concerns about the mine’s impact on groundwater. The proposed operation, to be run by Prairie Material Sales Inc., was rejected in a 7-2 vote by the county board. Subsequently, Lisbon Township, the regional plan commission, and the Zoning Board of Appeals also denied the application after a Yorkville geologist said the site would disrupt the Aux Sable Creek Watershed. The company pursued its appeals to the 16th Circuit Court, which sided with the mining company.

Indiana

In early August, the Tippecanoe County Drainage Board approved drainage plans for Purdy Concrete’s site at the intersection of County Road 150 East and County Road 510 South without hearing a single protest, the Journal and Courier reports. The uncontested  approval was in stark contrast to public outcry when county commissioners approved rezoning for the project a year ago. As long as the company obtains a building permit from the county fairly soon, the plant will be running within a year, a company spokesperson reported.

Kansas

For a second time, concerns about an agreement between Saline County and Alsop Sand regarding maintenance of Water Well Road led members of the county planning and zoning commission to table action on a conditional-use permit for a sand and gravel operation. The Salina Journal reports that the president of Alsop Sand Co. wants a conditional-use permit to mine sand on two sites southeast of Salina. However, the planning commission first tabled the matter in June due to concerns about the proposed road agreement. The county engineer and road supervisor are working on an agreement with Alsop to upgrade the road bed and to maintain the road, but the agreement is not final.

Michigan

Aggregate Industries has sued Alamo Township for the right to operate a 165-acre gravel mining operation there after being turned down by the township’s zoning board in June. According to the Kalamazoo Gazette, the company said the township’s ordinance regulating gravel mines is unconstitutional. In its claim, Aggregate Industries says that the board can deny a permit request if it determines a mine would create “very serious consequences” for the township. That “essentially means the board has practically unbridled discretion to deny any application on trivial grounds,” the suit reads. The suit was filed with the Kalamazoo County Circuit Court.

Minnesota

A number of Aggregate Industries’ barges were used in recovery efforts following the I-35W bridge collapse, and while employees say they take pride in helping with those efforts, the result has been a hardship for its Grey Cloud Island site. “We have four barges and a towboat that are stranded up the river right now, and that affects our business,” General Manager Don Vry told the Star Tribune. “That’s 5,000 tons of material per day that we can’t move.” A week after the bridge collapsed, the company laid off 35 of its 500 workers.

New Hampshire

Members of the Raymond Planning Board and residents adjoining a proposed quarry site toured the parcel in early August. The Union Leader reports that a real estate project manager for Thibeault Corp. led the tour and answered questions, however, some participants noted concerns about uncapped wells on the site as well as the impact of blasting.

New York

Studies of dust and noise emissions from Tilcon New York’s quarry in West Nyack were scheduled to resume in September, The Journal News reports. The testing would be the second round in a series of studies intended to assess the operation’s impact on the surrounding community. The initial studies were conducted in October 2006 after Tilcon representatives announced they would invest $40 million to reduce noise, dust, and truck traffic in the area. As part of its agreement, Tilcon has already invested in efforts to reduce noise by replacing wire and ceramic materials with rubber, adjusting alarms, and installing insulated noise-reduction panels. To reduce dust emissions, it has upgraded equipment, covered conveyor belts, and ordered a larger water truck.

North Carolina

According to the Charlotte Observer, Martin Marietta Materials recently dedicated its new office building in Kings Mountain. The company has operated the site since 1939, and it is Martin Marietta’s second oldest operation. It currently employs approximately 20 people and produces between 600,000 and 800,000 tons of crushed stone per year.

Ohio

At Aggregates Manager press time, Harbinger Capital Partners appeared to be launching a tender for $430 million market cap Oglebay Norton Co., based in Cleveland. Mergers & Acquisitions Report notes that Harbinger is Oglebay’s largest shareholder and controls 18 percent of its stock. The potential acquirer announced its intention to launch a $31-per-share tender offer shortly after Oglebay announced that it was considering strategic alternatives with JP Morgan acting as its financial advisor.

Oregon

Parts of Ross Island set for donation to the city of Portland are free from any obvious environmental problems, according to a study commissioned by the city. The Oregonian reports that the clean environmental report eradicates one of the last roadblocks before the city accepts the donation of part of the Willamette River island. The donation has been up in the air for six years, with owner Bob Pamplin changing the size of his donation until he briefly revoked the offer earlier this summer when he complained that the city, environmentalists, and media outlets were not accepting his terms for the land donation.

Pennsylvania

Comonwealth Court refused an appeal from Lehigh Asphalt Paving and Construction, The Morning Call reports. The producer hoped to reverse a decision from the East Penn Township Zoning Hearing Board. The board denied its request for a special exception permit to expand its operation by 20 acres to the east and by 40 acres to the west. In a one-sentence ruling, the judge said only that the court would not consider the company’s appeal of the May 16 ruling.

Pennsylvania

The zoning board in Dorrance Township unanimously rejected all requests from Pennsy Supply Inc. for a proposed 189-acre quarry expansion. According to The Citizens Voice, the board decision would lead to the closure of the existing 60-acre Small Mountain Quarry in three years when the reserves are exhausted. At Aggregates Manager press time, the company had not announced whether it would file an appeal in the case, but Pennsy counsel George Asimos told the newspaper, “I’m finding it a little hard to see how they could turn down a special exception. The land is zoned for this use.”

South Carolina

Vulcan Materials Co. received preliminary approval for a rezoning request to expand its operation in Piedmont, but the company must go before the Greenville County Council a third time before its final vote on Vulcan’s plan to rezone 106.2 acres to extend the life of its operation by another 20 years. The Greenville News reports that neighbors of the operation submitted a petition opposing the request and noted their concerns about the impact of blasting at the site. County Councilwoman Judy Gilstrap said that she has been working with Vulcan and residents to develop an understanding of what needs to happen at the site. She also said that she is working with the state Department of Transportation on issues dealing with the project.

Tennessee

Residents fighting a proposed 162.1-acre sand and gravel operation outside Monterrey have received a legal response from the Tennessee Department of Conservation (TDEC) and Plateau Sand, the Herald Citizen reports. Area residents formed the Meadow Creek Conservation Coalition and appealed the issuance of three permits by TDEC. They asked the Water Quality Control Board to repeal permits that would allow the Plateau Sand to operate the site during a five-year window. The 10-member Water Control Board does have the authority to overturn TDEC’s decision, but a date has not been set for the hearing. The board isn’t expected to hear the appeal until March 2008.

Washington

One of the remaining sections of Pasco land not currently marked for residential or industrial development is currently being scrutinized to see how it fits in the area’s mid-term development plans. According to the Tri-City Herald, the 1,100-acre parcel is owned by a handful of parties and includes a gravel mining operation run by Central Pre-Mix. The company has 20 to 25 years of reserves on the site, but a consultant noted that residential development could fill in the area if a buffer from the operation’s noise and dust was created.

West Virginia

The Journal Reports that Jefferson County Commissioners struck down a petition to allow commercial uses at the Old Standard Quarry property in Charles Town. A proposal to redevelop the site as a $250 million to $300 million hotel and commercial development inspired strong opinions both for and against the project. The three commissioners comprising the majority vote against the proposal cited traffic concerns and its proximity to Harpers Ferry National Historical Park land.

Wisconsin

The Sheboygan Jaycee Quarry, a swimming hole located on the site of a former aggregates operation, was closed in mid-summer due to the presence of blue-green algae. According to the Sheboygan Press, the algae, also known as Cyanobacteria, can be toxic to humans and animals. The city parks superintendent said they closed the swimming hole as a precautionary measure.

Province News

The Sierra Club of Canada’s executive director told a joint review panel investigating the environmental effects of the proposed Whites Point quarry and marine terminal project that it could turn portions of Nova Scotia’s coastal area into “America’s gravel pit,” The Canadian Press reports. “If approved, the 2-million-ton-per-year quarry proposed by Clayton Block and Sand will open the door to other basalt mega quarries along Nova Scotia’s Fundy coast, damaging the unique Digby Neck/North Mountain ecosystem and driving up Nova Scotia’s greenhouse gas emissions,” Stephen Hazell said. “As well, the mega quarry will further threaten the North Atlantic right whale, the most critically endangered large whale in the world.”

State Spotlight

Kentucky Residents File Lawsuits Over Faulty Concrete

More than 250 Caldwell County residents or businesses have filed lawsuits against the Federal Materials Co. (FMC) and other businesses due to faulty concrete, The Times Leader online edition reports.

Set to go to trial next May, the cases were filed in Caldwell Circuit Court while attorneys wait for a federal court decision on whether the suits qualify for class action status.

Madisonville attorney John C. Whitfield — one of two plaintiff attorneys in the case — filed a motion in Caldwell Circuit Court in March 2004 seeking class action designation for the suits, which target FMC, Hanson Aggregates Midwest, and Rogers Group, Inc.

The chief deputy clerk for the Caldwell County Circuit Court told The Times Leader that nine of the more than 250 cases have had court dates set for 10 days in May and June 2008. Hearings are set to begin May 19.

Complaints stem from allegations that FMC used unsuitable coarse aggregate supplied by Hanson, and subsequently Rogers, to manufacture concrete sold for residential and commercial construction projects. Hanson supplied aggregate to FMC’s Paducah plant until Dec. 2, 2000. At that time, Rogers Group acquired the quarry from Hanson and continued to supply stone to FMC. The complaint alleges that the crushed stone was deemed to be “deleteriously reactive” with alkalis in the cement and alkali-aggregate reactivity caused the aggregate and concrete to prematurely degrade. The suits also allege that FMC failed to test the aggregate for alkali reactivity.