Oak Ledge Properties withdrew its application to continue activities on its 77-acre site in East Haven. The New Haven Register reports that the developer had planned a mixed-use development, but withdrew its application on the same day a new application would be due to extend its current operations. The planning and zoning commission chairman told the newspaper that the developer no longer can conduct blasting or crushing. It is now limited to selling stockpiles of crushed stone already on the property.

Maine

The Bangor Planning Board unanimously approved a request from Randy Gardner to expand his 6.98-acre quarry operation by an additional 5.25 acres. According to the Bangor Daily News, the board also extended the operation’s conditional-use and site development permits for three more years. It did, however, limit operating hours to 6:30 a.m. to 6 p.m. on weekdays and 6:30 a.m. to 2 p.m. on Saturdays. Some neighboring residents expressed disappointment over the decision, but several sent letters of support to the city planning officer.

Mississippi

The Mississippi Supreme Court ordered the city of Batesville to take another look at a request from Memphis Stone and Gravel to operate a gravel pit in the southern part of Jackson. The Associated Press reports that its decision reversed earlier decisions by the state Court of Appeals and a Panola County judge. Justice Ann Lamar said the court could not determine from the case record how the city reached its conclusion that the pit would be legal and added that the board of aldermen should allow both the operator and its opponents to present evidence to support their positions. Finally, she said the aldermen should then provide more specifics on whatever conclusion it reaches.

Louisiana

St. John Enterprises said it plans to invest $32 million to upgrade Madison Parish Port Commission facilities in Tallulah, La., and to create approximately 450 jobs over the next five years, Workboat reports. The plant was expected to be online and delivering two new barges by late February. According to St. John CEO Ron Lewis, he has a contract to build six new 195- by 35-foot deck barges for a sand and gravel customer.

Minnesota

At Aggregates Manager’s press time, plans for Tiller Corp.’s proposed Zavoral mine were under review. The company is seeking permission for extraction and hauling, followed by reclamation. It does not plan to wash or process material on the site. The St. Paul Pioneer Press reports that Scandia’s project advisory committee planned to review a preliminary draft of Tiller’s environmental impact statement. The 64-acre pit has not been mined since the 1980s.

Missouri

The U.S. Army Corps of Engineers is considering a proposal that would allow five operators to dredge an additional 1 million tons of sand and gravel from the Kansas River each year and increase the number of dredging sites. According to The Kansas City Star, the companies can currently dredge 2.2 million tons of sand and gravel from 10 sites. Those same companies — including Kaw Valley Cos., Holliday Sand & Gravel, Penny’s Aggregates, Master’s Dredging, and Meier’s Ready Mix — want to dredge 3.2 million tons a year from 13 sites. Some environmentalists are speaking out against the proposal. A spokesman for the Corps said it will take a year for its decision process to be complete.

Missouri

Mining engineering students at the Missouri University of Science and Technology have developed an interesting fundraiser: fright nights at S&T’s Experimental Mine. The university reports that The Haunted Mine has been held every year since 1997 and serves as the main fundraiser for mining engineering activities and student organizations. Mining engineering students volunteer to work at the event and earn funds for the organization of their choice, including the Society for Mining, Metallurgy and Exploration; Women in Mining; the International Society for Explosives Engineers; and the National Stone, Sand & Gravel Association; as well as the university’s mine rescue and mucking teams.

Nevada

Gov. Brian Sandoval named Steve Hill as director of the Governor’s Office of Economic Development. The Associated Press reports that one of his main tasks will be to develop a state economic development plan and criteria for the designation of regional development authorities. Hill is a former vice president of CalPortland and served as a member of Sandoval’s transition team.

Nevada

Work has begun on the last remaining portions of the Las Vegas Beltway. According to the Las Vegas Review-Journal, Las Vegas Paving began work on the 7-mile, $117 million project after more than a year in delays. Fisher Sand and Gravel filed a federal lawsuit when its $112.2 million bid was rejected and alleged that commissioners were biased toward union companies. Las Vegas Paving is a union company. The dispute was settled when the county agreed to pay Fisher $5 million to walk away from the project. Las Vegas Paving is paying a portion of the settlement, with the remainder coming from interest earned on the project funding that has been held in escrow since 2009.

New York

The state Department of Environmental Conservation has issued a permit for Elam Sand and Gravel Corp.’s mine in West Bloomfield. It is seeking permission to operate a 45-acre parcel. The Rochester Democrat and Chronicle reports the operator still needs a special-use permit from the town of West Bloomfield. The town has adopted a moratorium on new special-use permits, and the company has filed lawsuits to force the town to void the moratorium and act on its permit application.

North Carolina

Vulcan Materials Co.’s charitable foundation made a $25,000, five-year pledge to Discovery Place KIDS-Rockingham on behalf of its Rockingham Quarry employees and families. According to the Richmond County Daily Journal, the donation will help fund the children’s museum, which is designed to stimulate adventure in learning and stimulating play. “Supporting educational programs is one example of Vulcan’s commitment to being a responsible corporate citizen in the communities in which we operate,” Plant Manager Charles Heatherly told the newspaper. “Supporting Discovery Place KIDS is a natural extension of our educational and stewardship initiatives, and we look forward to being a part of their exciting programs in this community.”

Texas

Summit Materials made a series of acquisitions in Texas, including Industrial Asphalt, Inc., Asphalt Paving Co. of Austin, Inc., and Ramming Paving Co., Ltd. The acquisition includes quarries, asphalt plants, and paving services. “We are very pleased to welcome the new companies and their employees to Summit,” Tom Hill, former CEO of Oldcastle, Inc. and current CEO of Summit Materials, said in a press release. “These businesses are a great combination, and together with RK Hall in northeast Texas, they expand Summit’s presence in the state.” Since it was formed in 2009, Summit Materials has completed 20 acquisitions.

Washington

Wm. Dickson Co. has been fined $24,000 by the Washington State Department of Ecology for discharging sediment-laden water in a storm drain that emptied into a salmon-bearing creek. According to the state agency, the operator’s permit limits the amount of turbidity that the gravel operation can discharge and prohibits any discharge that violates the state’s water quality standards for turbidity. It found that the source of the turbid water was a hole in the bottom of the pit where a pump was used to dewater the pit excavation over a bank into a creek. The operator said he plans to update his site management plan to prevent future discharge of turbid water into Swan Creek.

Wisconsin

The Eau Claire County Board adopted a moratorium that freezes frac sand mine development in the county for six months. According to The Leader-Telegram, the board voted 24 to 2 to approve the measure, which lasts until May 31. During that time, county officials say they plan to study the effects of sand mines on public health and the environment. Some supervisors sought quick passage of the moratorium because two sand mines have been proposed in the county during recent months. It impacts any company that had not begun mine construction as of Nov. 16.

Province News

A 31-year-old Northern Alberta quarry worker was killed on Nov. 7 after his arm was caught in a conveyor at Milestone Quarry, south of Fort McMurray. CBC News reports that the man was removing excess gravel when he was pulled into the conveyor’s rollers. A stop work order was issued at Surmont Sand and Gravel while investigators for Occupational Health and Safety investigated the incident.

Alabama

Vulcan Materials Co. named John McPherson as its senior vice president of strategy and business development. According to a company press release, McPherson was hired from international management firm McKinsey & Co., where he served as a senior partner in charge of human capital practice.

Arizona

El Mirage dropped a controversial proposal to annex mining property owned by the Salt River Pima-Maricopa Indian Community, The Arizona Republic reports. The city’s proposal raised the ire of neighboring Youngstown leaders, who threatened to sue. Under state mining laws, neither city has the regulatory ability to stop mining on the site, where such activities have taken place for decades. El Mirage Mayor Lana Mook told the newspaper that annexation would allow some control over operations and that some control (from one of the neighboring communities) was better than no control. City Council members canceled the meeting when the vote was to take place and allowed the proposal to expire.

California

Want to know how much concrete is needed for a job? There’s an app for that. Graniterock Co. recently released an updated version of a free iPhone application to help construction workers estimate the amount of materials needed for their projects. “We are a brick and mortar industry and maybe a little slow to adapt to new things,” company spokesman Keith Severson told the Monterey County Herald. But, he added, “We’re not old in spirit.” The original app was released in the spring; the new version boasts upgraded graphics. An Android version of the app is expected to be available soon.

Illinois

Meyer Material Co. recently filed a petition with the village of Cary seeking a four-year extension to its 2008 contract with the village. The Northwest Herald reports that the company agreed to pay the village $6.25 million over a 10-year window in exchange for permission to move its gravel pit beyond the Algonquin border. The company said that stagnant sales of sand and gravel would prohibit it from completing extraction, reclamation, and conveyance of the lands in a timely manner. Under the 2008 agreement, the company would owe the village $100,000 for every month it goes past the deadline. At Aggregates Manager press time, the village had not responded to the request.

Illinois

The North Aurora Village Board unanimously rejected Lafarge North America’s request to extend its aggregate mine beneath two 200-foot-wide electrical utility rights of way. According to The Beacon News, homeowners have complained about mine blasts shaking their houses and cracking their walls and foundation, however, Lafarge attorney Bruce Goldsmith told trustees that the mine has never violated village or federal limits on noise levels or vibrations from underground blasting. He noted that blasts near a 30-inch-wide natural gas line running through the right of way where the company hoped to mine would not damage the pipe, and local utility officials had approved the work, as long as they monitored vibration levels around the pipe using a seismograph. The attorney’s arguments did not persuade board members who rejected the proposal.

Iowa

The Telegraph-Herald reports the Prairie du Chien City Council voted 8-to-2 to greenlight an agreement that would allow Prairie Sand and Gravel Co. to build docks and boat slips along the river wall of St. Feriole Island. The docks will go up in 2012 on a one-year trial basis, with a number of conditions. The docks can’t be placed before May 1 and must be removed by Oct. 12. There can’t be any overnight docking, and the docks must be removed at the request of the city if the river level goes above 15.5 feet, a half-foot below flood stage. The company must also purchase a $1 million liability insurance policy.

Minnesota

By a slim 3-to-2 vote, a new gravel pit was permitted, and the expansion of an existing pit was granted. The Free Press reports that the two Mankato pits faced opposition from seven people who testified against the proposal, however owner/operator Pete Forrey prevailed in his effort to expand local aggregate supplies. The new mine is 38.86 acres and will be mined in 10-acre segments. The second site, at Hard Rock Quarry, received permission to expand the existing site by 18.25 acres.

Nevada

In late October, Clark County Commissioner Steve Sisolak hosted a trio of public meetings in Henderson. According to The Associated Press, the meetings were related to Service Rock Products and Cemex’s proposal to mine 1 square mile of federal Bureau of Land Management property in the Sloan Hills area over the next 20 years. The first hour of each meeting was an open house with specialists to answer questions, followed by a 30-minute presentation of the project and 90 minutes of public comment.

New Hampshire

The town of Winchester’s planning board faces a legal challenge to its handling of Mitchell Sand and Gravel’s new asphalt plant. The Keene Sentinel reports that four residents filed an appeal of the planning board’s decision in Cheshire County Superior Court. They allege the board failed to enforce some of the 23 conditions it placed when granting permission for the asphalt plant earlier this year. The town must file a written appearance form this month and has until Jan. 6, 2012, to respond to the appeal.

New York

Appellate justices again upheld a Supreme Court ruling nullifying the town of Nassau’s law banning commercial mining. According to The Times Union, the town re-appealed the justices’ March decision with information omitted in the original argument, but failed to sway the justices. Troy Sand & Gravel, the producer who has been involved in the eight-year dispute on mining rights, asked the court to render its special-use permit after their prolonged permitting efforts. The justices, however, noted that neither the town nor the town’s local laws provide for a default approval of a special-use permit when the town doesn’t comply with the appropriate time periods.

New York

An attorney for Dolomite Products Co., a part of Callanan Industries Inc., said she hopes that its plan for an asphalt plant on Route 67 will be on the town planning board’s December agenda. The Saratogian reports that the company filed an application with the Zoning Board because it needs a height variance to construct the plant, which is estimated to be 70 feet tall. If approved, the plant would begin the environmental impact review process. It would also need approval from the state Historic Preservation Office for archaeology issues, the newspaper reports.

Washington

Gravel mining could begin soon in Thurston County after an adversarial citizens’ group announced that it would not appeal a court decision allowing Maytown Sand and Gravel to mine the site. The Olympian reports that Friends of Rocky Prairie gave up its lengthy battle after a local judge ruled that it lacked standing to challenge a county land-use decision regarding the site. A spokesperson for the group said it would have needed a million dollars to cover a bond necessary to move the appeal forward. Port of Tacoma Commission President Connie Bacon told the newspaper that the public entity appreciated that the courts agreed with its legal assertions, but was discouraged by the amount of unnecessary time and money (estimates show the port’s costs to range up to $2 million) incurred through the legal challenges.

Wisconsin

Eau Claire County officials are considering an increase in mining fees to offset the costs associated with reviewing an anticipated increase in applications for silica sand mines. According to The Leader-Telegram, the county Finance and Budget Committee recommended the County Board increase its $35-per-acre charge to review proposed mines’ reclamation plans. The proposal would increase costs for a one- to five-acre mine to $200, while any mine larger than 102 acres would cost $7,000. The committee also recommended that public hearing fees be increased from $150 to $250. Buffalo County is also considering an increase in fees for new mines in that county.

Wisconsin

The Red Cedar Town Board voted 4-to-1 to send a proposed sand processing plant to Dunn County officials for their consideration, The Leader-Telegram reports. Radnor, Pa.-based Preferred Sands wants to build a 160-acre plant near the northeast corner or Menomonie. If approved, it would process sand from its own mines.

Province News

Sudbury (Ontario) city council members approved a proposal to ask the province to impose a levy on mining companies using municipal roads to haul material. According to cbc.ca, the online arm of the Canadian Broadcasting Corp., Councilor Andre Rivest proposed a system of royalties, similar to those already paid by sand and gravel companies, with profits going toward road repair. The city will now approach the Association of Municipalities of Ontario to lobby for a change in provincial law.

The number of merger and acquisition transactions in North America was up 13 percent for the three quarters ending Sept. 30, 2011, while the total value of these transactions was up 28 percent from the prior year. The construction materials sector, on the other hand, has been flat in 2011, with small- to medium-sized deals dominating.

George H. Reddin is a principal in FMI’s Investment Banking practice. He can be reached at 919-785-9286 or at greddin@fminet.com.

The construction materials sector is dependent on the housing market and highway funding. Both continue to be major disappointments. Housing construction put in place peaked in 2006 at a level of approximately $435 billion and is expected to be slightly more than $110 billion for 2011. This, together with the lack of a long-term federal transportation bill and troubled state departments of transportation, has led to a significant drop in stock prices for the sector’s publicly traded stocks in recent months. At the end of September, the construction materials peer group members were trading at nearly 50 percent of their 52-week highs, while, at the same time, the market indexes were only off by approximately 15 percent.

For example, Cemex stock fell to a 13-year low on concerns of its ability to meet debt obligations. At the end of September, Cemex shares had lost three-quarters of their value. Trading in shares of Cemex was temporarily suspended on Oct. 2 after the shares fell 15 percent from their previous close. Cemex’s debt is now 7.2 times the company’s EBITDA at the end of June. The peer group for construction materials producers has a median Debt/EBITDA ratio of approximately 4.6 times, which is up from only 2.0 times in 2006. The company is expected to sell $1 billion in non-core assets to appease creditors.

Recent transactions

Lafarge continues to divest of its assets in the United States and is expected to sell its Calera, Citadel, and Lakeshore operations in Birmingham, Ala., to Vulcan Materials Co. Earlier this year, Lafarge realized $760 million from the sale of assets to Cementos Argos. That transaction consisted of 79 ready-mixed plants in Georgia, Alabama, and Louisiana, cement plants in Harleyville, S.C., and Roberta, Ala., plus an Atlanta-area clinker grinding mill and six cement terminals. Aggregate Industries, a subsidiary of Holcim, is rumored to have purchased Ennstone, Inc. of Virginia. Ennstone operates three sand and gravel pits, one limestone quarry, and 17 Ready Mix Concrete Co. plants.

Other news

The House Committee on Transportation and Infrastructure has instructions to find the resources for a larger surface transportation reauthorization bill, but one that will not include an increase in the gas user fee. The committee will be working on a $350 billion, six-year surface transportation bill. This is up from the $230 billion, six-year bill outlined by the committee in July that would have represented a 34-percent cut from current funding levels. The committee will have to find about $100 billion in additional resources. This development boosts optimism for increased funding, which had recently hit rock bottom. The Senate Appropriations Committee has approved a draft FY12 appropriations bill for the Department of Transportation and Housing and Urban Development (THUD). The Senate bill maintains current funding levels for program obligation limitations of $41.1 billion for highways. This news provides optimism for highway funding, which is encouraging for merger and acquisition activity.

By Therese Dunphy, Editor-in-Chief

Illinois

Gov. Pat Quinn signed legislation to help reduce fuel and equipment costs for trucking companies throughout the state. According to a press release from the governor’s office, the new law allows the Illinois Department of Transportation (IDOT) to issue permits for loads that previously exceeded size and weight restrictions for travel on state highways, if specific conditions are met. Sponsored by Sen. William Haine and Rep. Daniel Beiser, Senate Bill 42 applies to “divisible” loads that previously had to be broken down into separate shipments to meet the standard truck weight limit of 80,000 pounds. IDOT can now issue the necessary permits for a truck hauling a load weighing more than 80,000 pounds if it is traveling less than 5 miles and will not negatively impact pavement conditions along its route.

California

Duarte city officials have taken another step in their efforts to stop Vulcan Materials Co.’s mining project in Azusa. According to the San Gabriel Valley Tribune, the city filed its objections to a superior court decision with the state appeals court. A three-judge panel will now review the case, which could take more than a year to complete. The city has been fighting the project since the Azusa City Council approved Vulcan’s plan to shift its mining operations from 80 acres on the eastern end of its 270-acre property to 80 acres on its western end, closer to Duarte.

Illinois

Two of Lafarge North America’s Illinois aggregate operations, Cave in Rock and Joliet, were recently awarded with the Illinois Association of Aggregate Producers (IAAP) Community Relations Award. The award recognizes producer member companies whose community involvement and support activities enhance the public’s perception of the member’s aggregate operation and the aggregate industry in general. The Cave in Rock quarry was recognized for its community efforts around wildlife habitat restoration, working with residents to help clean up the banks of the Ohio River, and donations of money, materials, and services to community groups. The Joliet Quarry award recognized its community efforts and donations to Habitat for Humanity, Morning Star Mission Ministries, and employee’s labor to clean up the shoreline along the Illinois River. “It is part of our operating philosophy to give back to the communities in which we operate,” said Matthew Dantinne, vice president and general manager for Lafarge Midwest Aggregates. “We enjoy being part of the communities and continue to look for opportunities where we can make a difference.”

Minnesota

The Zavoral project advisory committee met in late August and toured Tiller Corp.’s proposed mine site before hearing reports regarding dust emissions, visual impact, traffic, and reclamation of the project. According to the Country Messenger, approximately 70 people attended the meeting concerning the 114-acre site. An air quality expert said the proposed mine would exceed national air quality standards if mitigation measures were not used, but noted that water, dust control chemicals, and sweeping could offset those impacts. Mining would not be visible to boaters along the neighboring river. One member of the committee noted concerns about traffic safety, while a resident called for the operation to be liable for damage to neighboring homes. The group’s final meeting will be held Nov. 16.

Montana

The Montana Supreme Court unanimously upheld the decision of a local judge who threw out a lawsuit filed by a Gallatin citizens group. The Bozeman Daily Chronicle reports that the citizens group challenged the constitutionality of the way protests were handled concerning a gravel zoning district in the Gallatin Gateway area. The issue began when the Gallatin County Commission imposed a two-year temporary zoning district that required new and expanding gravel pits to go through a conditional-use permitting process, and area gravel operators, agricultural families, and developers protested the ordinance. Under a county law, property owners representing 50 percent of titled property in the proposed zoning district can protest and stop zoning. The citizens group argued that people, not land, vote, and the protest law infringed on the rights of others. The district judge did not rule on that issue because the law also required the county to act within 30 days of the protest period and either form the zoning district or throw it out. The county did not act on the zoning district.

New York

The state Department of Environmental Conservation (DEC) has scheduled hearings for Elam Sand and Gravel Corp.’s proposed mine in West Bloomfield. According to the Rochester Democrat and Chronicle, Administrative Law Judge Molly T. McBride will oversee the process. It will include two hearings; one for public comment and another to define, narrow, and possibly resolve issues related to the mine. Participation at that conference will be limited to DEC staff, the operator, and others requesting party status prior to the conference. In addition to the DEC permit, Elam requires a special-use permit from the town of West Bloomfield, which has adopted a moratorium on new special-use permits. The operator has filed lawsuits to force the town to act on the permit and to void the moratorium.

Oregon

Some Saginaw residents are upset by increased evening activity at Northwest Mineral Resources, KVAL 13 reports. The company has increased activity on Delight Valley School Road to supply its involvement in a repaving project for Interstate 5, but that paving can take place only between the hours of 7 p.m. and 9 a.m. Lane County is reviewing the company’s operation plan, and the county’s sand and gravel committee is expected to address the project’s impact on residents.

Texas

A state appeals court has ruled against Cemex in a suit that claimed the company owed Texas a half-billion dollars in mineral royalties from its quarry in McKelligon Canyon. The El Paso Times reports that Texas Land Commissioner Jerry Patterson sued the company, seeking $558 million in fees he says should have gone into the Texas Permanent School Fund. Texas property owners are generally required to lease mineral rights prior to extraction of oil, gas, and other materials from the ground. They then pay state royalties — a percentage of the market value — of what is removed from the land. While Cemex owns the land, the state claims the rights to minerals in the land. Cemex bought the quarry in 2005. Through the lawsuit, the company argued that “dirt, caliche, sand, gravel, limestone, and other materials at issue are not ‘minerals’ reserved to the state and therefore belong to Cemex.” It also argued it could not be held responsible for any royalties before 2005 when it purchased the land. The case will be returned to the trial court to determine how much the company owes.

Texas

At the end of August, the Texas Commission on Environmental Quality held a public hearing concerning EOG Resources, Inc.’s proposed 1,400-acre frac sand mine in Muenster. According to the Gainesville Daily Register, both neighbors of the proposed site and EOG staff members made statements. Some neighbors addressed concerns that the site would destroy the bucolic nature of the area, while others were concerned about environmental impact. Employees noted the economic benefits of the site and pointed to the company’s efforts to aid Montague County during recent wildfires as a representation of what kind of neighbor the company would be.

Washington

The Washington Department of Ecology announced that it has modified the state’s Sand and Gravel General Permit. The new permit reduces the level of turbidity and solids that facilities may discharge into the state’s waters, and it requires portable operations to provide public notice prior to their activities. The action settles an appeal of the permit by the Puget Soundkeeper Alliance. The Washington Aggregates and Concrete Association intervened in the appeal, supporting the department’s original permit. The permit regulates water discharges from sand and gravel operations, quarries, and similar mining operations as well as hot-mix asphalt plants, concrete batch plants, and stockpile yards. It covers about 950 facilities in the state. Changes are effective Oct. 1. For more information, visit www.ecy.wa.gov/programs/wq/sand/.

Wisconsin

EOG Resources’ new sand plant in Chippewa Falls is scheduled to open by the end of the month, nearly a year after work on the facility began. The Leader-Telegram reports that, in early September, the plant was 90 percent complete and 300 people were working on the site. Approximately 40 sand mines are either currently operating or proposed in this part of the state, where the sand is particularly hard, round, and porous, making it ideal for use in extracting petroleum and natural gas from the ground. The EOG plant was originally expected to cost between $45 and $50 million, but that figure has grown to approximately $60 million with the addition of an indoor sand storage building.

Province News

Athabasca Minerals Inc. received approval from the government of Alberta for metallic and industrial mineral leases totaling approximately 31,630 acres at the Firebag Frac Sand Project located in the Wood Buffalo region of northern Alberta. The company says it intends to continue development of the project by initiating a National Instrument 43-101 technical report and pilot scale production of frac sand. “We are extremely pleased at the continued progress of the Firebag Frac Sand Project and look forward to additional positive developments, which will confirm the economic viability of frac sand production,” Dom Kriangkum, president of Athabasca Minerals, said in a press release. “This potential revenue stream further complements our existing revenues generated from the Susan Lake Aggregate Operation and Camp Operations. In addition to this, we continue to investigate industrial minerals, which benefit from the heightened activity in the oil and gas and oil sands industries.”

Cooperating with the surrounding community and being good stewards of the environment has brought awards and accolades to Huntsville Quarry.

by Kerry Clines, Senior Editor

Every year during the National Stone, Sand and Gravel Association’s (NSSGA) annual convention, the association presents awards to aggregate operations that have gone the extra mile, whether improving relations with the surrounding community or reducing the size of the footprint left on the environment. In addition to these awards, the NSSGA presents operations that have won awards in two or more categories within a five-year period with a National Stars of Excellence award. The number of stars signifies the number of awards the operation received during the five-year period.

This year, Vulcan’s Huntsville Quarry became a two-star recipient. The quarry received the National Stars of Excellence award for having received the 2010 Environmental Excellence Gold Award, in addition to the 2008 Excellence in Community Relations Gold Award. This, in itself, is quite an accomplishment, but the awards didn’t stop there.

Being a good neighbor

Huntsville Quarry was opened by Madison Limestone Co. in the early 1950s and was bought by Vulcan Materials Co. in 1973. The stone processed at the quarry is a high-quality limestone and is primarily used in roadbuilding for asphalt, concrete, and base materials, as well as in residential and commercial construction.

The quarry is located within Huntsville city limits. Eli Christopher, area operations manager – North Alabama, Vulcan Materials Co., says, “We continue to be mindful of the appearance of our facilities and of the way we impact our community. There are some things that we won’t sacrifice, even in this down economy. Our position with the city has improved greatly in the last 15 years.”

Maintaining and improving the appearance of the entrance has helped the quarry continue its favorable relationship with the city. In fact, the quarry has been recognized by the city for its beautification and environmental improvement efforts. “For the last eight years in a row, the city of Huntsville’s Beautification Board has awarded our efforts with their annual beautification award,” Christopher says. “And, after having won this award for five consecutive years, they’ve now placed us on their ‘Honor Roll.’ We’ve also been awarded air pollution control achievement awards from the city for the last three years for various improvements we’ve made in our plant.”

Thinking of the environment

Huntsville Quarry participates in an air pollution control improvement program offered by the Department of Natural Resources (DNR) in the city of Huntsville. The DNR enforces the same air pollution control regulations as the Alabama Department of Environmental Management.

“They (DNR) visit and inspect our plant, annually,” Christopher says, “conducting dust emission readings along with visual inspections of our storm water treatment facilities.”

Four years ago, the director of DNR informed Christopher that the department had a program that could help tout the quarry’s air-pollution-control improvement efforts to the public. The program would explain what the quarry was doing now and what it could do in the future to control any air pollutants that might be produced at the facility.

Conveyors lead to and from one of the enclosed screening towers designed to reduce wind-blown dust and noise.

“We submitted our ideas to the Department of Natural Resources and said, ‘here’s what we’re doing,’” Christopher says. “We use an organic surfactant in our water truck for controlling the dust from truck traffic on our site. Instead of the typical water-only treatment, which can rapidly evaporate, the surfactant adheres to the ground so you don’t have to make as many trips in the water truck. We control the dust on the roads and reduce the number of hours on the water truck, so there’s less dust and less diesel exhaust.”

After seeing the results of the surfactant’s use on the quarry’s roads, a system was installed in the finishing plant area that adds an organic surfactant foaming agent to the water used in the plant’s dust suppression system to control dust emissions from the various plant processes. This system utilizes compressed air, water, and the surfactant to create a foam that adheres to the limestone and virtually eliminates dust emissions. Unlike water-only systems, the effects of the foam continue into the process, into the stockpiles, and help control dust generated by wind.

These improvements helped Huntsville Quarry earn air pollution control achievement awards from the city for the past three years. “It’s all about trying to improve air pollution control, and the city feels that our efforts deserve recognition,” Christopher says.

The quarry helps keep the environment clean by recirculating all the water that comes through the facility. “We’re very conscious of controlling any surface and process water that tries to leave our property,” Christopher says. “We capture it all in a settling pond system. The solids settle out, and then we pump the water back to the plant for use in dust control, to use in the water truck, and to wash the rock for concrete and asphalt use. It all recirculates. With the implementation of our water management program, the quarry has reduced its consumption of purchased water by over 40 million gallons per year. We have Rain Bird sprinklers along the plant entrance to water the grass and keep the asphalt pavement wet for traffic dust control.”

All screening towers in the finishing plant are enclosed. This, by design, helps reduce wind-blown dust and noise generated in the screening process.

Along with weekly sweeping of the paved areas of the facility, Huntsville Quarry has two wheel wash systems that help prevent tracking into the community.

The finishing plant’s dust suppression system uses compressed air, water, and an organic surfactant to create a foam spray that adheres to the limestone and virtually eliminates dust emissions.

The first system is located at the truck scales. An electronic eye is tripped by each truck as it approaches the scales. The sprayers activate and clean the wheels and the chassis. This helps prevent tracking onto the scales, as well as tracking out of the quarry.

A second wheel wash system is located at the front gate where it washes the tires of every vehicle that leaves the quarry. This system is quite different from the other. It doesn’t use as much water as the first, as the water is pumped up through pipes beneath the pavement rather than being sprayed. An electronic eye senses the approach of each vehicle and increases the flow of the water, so every vehicle leaves the quarry with clean tires.

Both wheel wash systems have drains that collect the used water to return it to the settling pond system, where it is recycled and reused.

Another environmentally friendly program the quarry participates in involves electricity usage. “Our electric power is supplied through distributors of the TVA (Tennessee Valley Authority),” Christopher says. “TVA has offered a seasonal time-of-use power rate. If we operate our facility during hours that are more friendly to their generation needs, the distributor offers us a lower cost rate.”

In the summer, those hours begin at 4:45 a.m. and end at 1 p.m. “If we go beyond 1 o’clock, our electricity becomes dramatically more expensive,” Christopher says. “TVA encourages people who can do it to consume the majority of their electricity in off-peak power times, due to seasonal generation issues. We’ve been participating in the cost-saving program for six years now. This effort speaks to the environmental issue of additional fossil fuel burn required to increase power generation in the Tennessee Valley.”

Even though the processing plant shuts down at 1 p.m. during the summer months, the scales stay open until 5 p.m, allowing customer trucks to haul all day. The quarry has seen as many as 55 to 60 trucks per hour cross the scales.

Involving the community

Huntsville Quarry takes advantage of every opportunity to communicate with and educate the community about the aggregate industry by inviting them out to the quarry, giving tours, and explaining what the quarry does. “One of the most popular events is our annual Open House,” Christopher says. “This year, we had almost 600 attendees. Lunch is catered for local leaders, neighbors, and customers to come and enjoy. This has been a great opportunity for us to inform our local leaders and community members about our industry.

“We also partner with our neighborhood elementary school,” Christopher adds. “Being actively involved with the school allows us to communicate with the students, teachers, and parents about earth sciences, as well as what our industry does and the methods used to minimize our impact on the environment. Our annual field trip to the quarry is always a big hit with the students and teachers alike.”

Huntsville Quarry also gains access to the community by being involved with area civic groups and county and city organized service groups. “We participate in a locally sponsored ‘Meals-on-Wheels’ program, helping deliver meals to the elderly and home bound in our community, and ‘Adopt-a-Mile’ as well,” Christopher says. “Our company website is also accessible to anyone with internet access. The website has been a wonderful tool to help inform the community about our accomplishments and the industry in general.”

“We’re a somewhat unique plant because of our location in the city,” says David Wheeler, assistant plant manager. “From the stripping walls up at the top, the quarry is about 500 to 550 feet deep. We’re mined out on one side of the pit, so we’re actually putting our spoil and waste rock back into the pit and filling it back in — reclaiming it.” The quarry has also been accepting an average of about 30,000 tons of ‘green concrete’ annually onto the property. This gives customers a place to put their concrete waste and keep it out of local landfills.

“We have an excellent crew at this plant with a lot of experience,” Wheeler says. “Some of these people have been here 40 years. One of our shipping loader operators has been loading on this yard for 35 years. He’s seen a lot of different equipment come and go — from a loader that didn’t have a cab on it to the one he’s got now. He’s also seen a lot of changes made in the way we run our business, and in the importance shown with respect to the neighborhoods we work and live in.” AM

EQUIPMENT LINEUP

Mobile Fleet

Caterpillar 992G wheel loader

Caterpillar 990 wheel loader

Caterpillar 775D truck (3)

Caterpillar 773B truck (3)

Caterpillar D8L Dozer

Caterpillar 980G wheel loader (2)

At the front gate, water bubbles up from pipes beneath the pavement to wash the tires of every vehicle leaving the quarry.

Caterpillar 980F wheel loader

Caterpillar 769C water truck

Ingersoll Rand T4 drill

Grove 522 crane

Caterpillar IT12 utility loader

Broce broom

John Deere 450 excavator with NGK G18 hydraulic rock breaker

Fixed Equipment

Metso C140 jaw crusher

Nordberg 7-foot cone crusher

Metso HP400 cone crusher

Nordberg 1560 Omni cone crusher

Metso HP300 cone crusher

Deister 60-inch x 28-foot vibrating grizzly feeder

Deister 6-foot x 16-foot triple-deck screen

Deister 8-foot x 20-foot triple-deck screen (4)

Deister 6-foot x 16-foot triple-deck screen (wash screen)

Deister 6-foot x 18-foot single-deck high-frequency screen

McLanahan double-shaft 36-inch x 24-foot fine material washer

By George H. Reddin

Merger and acquisition activity continues to plod along with the theme of strategic bolt-on and corporate divestitures continuing to lead the way. Publicly traded companies continue efforts to repair balance sheets and raise capital.

Recent activity

Lafarge sold its cement and concrete assets in the southeast United States to Colombia-based Cementos Argos for an enterprise value of $760 million. The cement assets sold include the Harleyville cement plant in South Carolina, the Roberta cement plant in Alabama, a cement grinding station in Atlanta, and associated supporting cement terminals. Lafarge is also selling its ready-mix concrete units in this area of the United States. The total revenues of these divested businesses were approximately $240 million in 2010.

George H. Reddin is a principal in FMI’s Investment Banking practice. He can be reached at 919-785-9286 or at greddin@fminet.com.

Hancock Concrete Products, LLC, based in Hancock, Minn., has acquired the Hanson Pipe & Precast plant in Sioux Falls, S.D. Hancock Concrete Products manufactures infrastructure products including precast concrete box culverts, concrete round and arch pipes, manhole structures, three-sided bridges, flat storage solutions, and block products.

Natural Resource Partners L.P. (NRP) has acquired a royalty interest in frac sand reserves near Tyler, Texas, for a purchase price of $16.5 million. The reserves are strategically located near several shale gas basins in Texas, Louisiana, Oklahoma, and Arkansas. NRP is a master limited partnership headquartered in Houston, Texas, with its operations headquarters in Huntington, W.Va., which is principally engaged in the business of owning and managing mineral reserve properties.

Breckenridge Material Co. has acquired an interest in Ready Mix Concrete, Inc., based in San Juan, Puerto Rico. Breckenridge Material Co., based in St. Louis, produces and supplies ready-mix concrete, construction aggregates, and a variety of building materials and accessories.

Dolese Bros. Co. has acquired Rainbow Concrete Co., based in Tulsa, Okla. Rainbow owns and operates five ready-mix concrete plants and approximately 60 concrete mixing trucks. Dolese Bros. Co., based in Oklahoma City, produces and supplies construction materials in Oklahoma and Louisiana.

Coco Paving Inc., based in Windsor, Canada, has acquired Ron Robinson Ltd., based in Bowmanville, Canada, and Kovacs Sand & Gravel Ltd., based in Hampton, Canada. Ron Robinson Ltd. offers construction services, and Kovacs Sand & Gravel Ltd. owns and operates quarries and distributes crushed stone, sand, and gravel.

Other activity

Vulcan Materials Co. has announced that it intends to offer $1 billion of senior unsecured notes. Vulcan intends to use the net proceeds to refinance existing debt, fund a partial tender offer for its existing senior notes, reduce borrowings under its credit facility, and for general corporate purposes.

Strong rankings in the areas of product quality, service, support, ease of transaction and value have earned Applied a Bronze, Silver, Gold, or Platinum Alliance award from Vulcan every year since 2000.

“Vulcan is a valued customer with a strong commitment to quality,” said Tom Arnold, vice president – marketing and strategic accounts, in a press statement.  ”We appreciate the trust bestowed upon us because it serves to strengthen our commitment to customer service.”

Pete Roberts, director of procurement for Vulcan, added: “We are pleased to recognize Applied with Gold Award status in recognition of their ongoing product support and service solutions that help make Vulcan successful.”

The 2010 survey asked plant managers at each of the Vulcan facilities to rate suppliers’ overall value to their location. The new survey approach resulted in increased participation, additional feedback and more stringent reviews. More than 200 Applied Service Centers provide Vulcan facilities with bearings, power transmission products, rubber products and specialty maintenance items, in addition to systems integration and technical assistance.

Vulcan Materials Co., a member of the S&P 500 index, is the nation’s foremost producer of construction aggregates and a major producer of other construction materials.

To participate by phone, investors and other interested parties can call 866-788-0543 about 10 minutes before the scheduled start. The access code is 62767134. For international calls, dial 857-350-1681. The conference call will also be available on Vulcan’s Web site — www.vulcanmaterials.com.

The conference call will be recorded and available for replay about two hours after the call through May 12, 2011. In the U.S. and Canada, dial 888-286-8010, and for international calls, dial 617-801-6888. The access code to hear the recording is 39061066.

For additional information about Vulcan, go to www.vulcanmaterials.com.

To participate by phone, investors and other interested parties can call 866.788.0543 approximately 10 minutes before the scheduled start.  The access code is 62767134.  For international calls, dial 857.350.1681.  The conference call will also be available on Vulcan’s website – www.vulcanmaterials.com.

The conference call will be recorded and available for replay approximately two hours after the call through May 12, 2011.  In the U.S. and Canada dial 888.286.8010 and for international calls, dial 617.801.6888. The access code to hear the recording is 39061066.

Vulcan Materials Co., a member of the S&P 500 index, is the nation’s foremost producer of construction aggregates, a major producer of asphalt mix and concrete and a leading producer of cement in Florida.  For additional information about Vulcan, go to www.vulcanmaterials.com.

Vulcan Materials Co. will release earnings after the close of business on Wednesday, May 4, 2011 and host a conference call at 9 a.m. CDT (10 EDT) on Thursday, May 5, 2011.

To participate by phone, investors and other interested parties can call 866.788.0543 approximately 10 minutes before the scheduled start.  The access code is 62767134.  For international calls, dial 857.350.1681.  The conference call will also be available on Vulcan’s website – www.vulcanmaterials.com.

The conference call will be recorded and available for replay approximately two hours after the call through May 12, 2011.  In the U.S. and Canada dial 888.286.8010 and for international calls, dial 617.801.6888. The access code to hear the recording is 39061066.

Vulcan Materials Company, a member of the S&P 500 index, is the nation’s foremost producer of construction aggregates, a major producer of asphalt mix and concrete and a leading producer of cement in Florida.  For additional information about Vulcan, go to www.vulcanmaterials.com.

By Therese Dunphy

It’s a story that regularly unfolds in communities around the United States: the big bad mining company approaches the local government body seeking a permit. Outraged neighbors cry out about the harmful environmental impacts of big business. Flyers are distributed door to door. The community is warned about the harmful health effects of noise and dust. Citizens jam the corridors of city hall demanding that their elected representatives send the evil doers packing. In this particular case, a neighboring community’s ecologically minded city mayor rode her bike to city hall to drop off hundreds of protest letters.

You know how the story ends, right? But here’s the thing. This story has a twist. Despite numerous hurdles during the company’s effort to swap which 80 acres of its 270-acre property were to be mined, residents supported the company’s mine plan.

No, that’s not a misprint. On Jan. 25, a special election with a single ballot issue — Measure A — passed by more than a 2-1 margin. The miracle transpired in Azusa, Calif., where Vulcan Materials Co.’s year-and-a-half-long permitting process culminated in a vote of the people.

Six months earlier, the Azusa City Council approved the operator’s request in a 4-1 vote. An anti-mining group, Azusans Against Mining Expansion, subsequently gathered the necessary signatures to place a referendum item on a special election ballot. The anti-mining faction also mobilized three candidates to run against the council members who had approved the plan.

Meanwhile, allegations of government wrongdoing flew around both Azusa and the neighboring community of Duarte, which was unhappy with a mine plan that would move mining operations closer to the community border. Duarte filed a lawsuit against Azusa. It claimed the project’s environmental impact report was flawed and alleged that the Azusa City Council violated open meetings laws. Former Azusa Mayor Diane Chagnon, a proponent of the plan, said the Duarte City Council misused public funds by hiring a public relations firm to help with the referendum and illegally discussed items in closed session. The Los Angeles County District Attorney’s Office is investigating the claims against Duarte, while Duarte’s lawsuit against Azusa is about to be heard in court.

In terms of environmental impact, Vulcan plans to mine the 80 acres using a technique called “micro-benching,” which mines in 1- to 2-foot benches rather than the traditional 30-foot benches and allows for more natural-looking reclamation efforts. The plan won over area residents, including outdoor enthusiast Dan Simpson. The longtime Azusa resident told the Los Angeles Times that he found that a lot of opponents were uneducated about the plan and its environmental benefits. “It’s really easy to say ‘no’ as opposed to looking objectively at things,” he said. “You have people who just don’t understand the issues…but from an environmental standpoint, this is far superior than the current plan.”

If a local hiker can figure that out, maybe the courts can, too. If so, Vulcan’s Azusa story may be well on its way to a happy ending.