Florida Department of Environmental Protection Bureau of Mine Reclamation 2051 East Paul Dirac Drive Tallahassee, Florida

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1 Florida Department of Environmental Protection Bureau of Mine Reclamation 2051 East Paul Dirac Drive Tallahassee, Florida DEP Charlie Crist Governor Jeff Kottkamp Lt. Governor Michael W. Sole Secretary BUREAU OF MINE RECLAMATION DEPARTMENT OF ENVIRONMENTAL PROTECTION STATE OF FLORIDA OGC Case No.: In the Matter of an Application for Variance, by: APPLICANT: PROJECT NAME: PCS Phosphate White Springs Hamilton County Mine Post Office Box 300 Variance PCS-HC- VA(06)(GYP) White Springs, Florida Swift Creek GypStack Reclamation Standards AGENT: FILE NO.: Mr. Stanley Posey Manager, Environmental Affairs COUNTY: Hamilton PCS Phosphate White Springs Post Office Box 300 White Springs, Florida FINAL ORDER On October 10, 2006, the Florida Department of Environmental Protection s Bureau of Mine Reclamation (Department) received a petition from PCS Phosphate White Springs (PCS), Post Office Box 300, White Springs, Florida (PCS) seeking a variance under section , F.S., from the provisions of rule 62C , F.A.C., which provides minimum standards for mandatory phosphate mine reclamation, in order to allow reclamation of the mandatory portions of its Swift Creek phosphogypsum stack (Gypstack) to industrial use. The Swift Creek Gypstack is located off of U.S. Highway 41 at PCS Hamilton County Mine in Hamilton County, Florida. Mandatory reclamation programs SC-SP(3) and SC-84(1) are located within the limits of the Swift Creek

2 Page 2 of 7 Gypstack property in Sections 25, 26, 35, and 36, Township 1 North, Range 14 East in the Suwannee River Watershed, Class III waters. The site was mined for phosphate by PCS predecessor (Occidental Chemical Corporation) after July 1, 1975, and is subject to mandatory phosphate reclamation requirements under Chapter 378, F.S., and Chapter 62C-16, F.A.C. Under rule 62C , F.A.C., re-contouring of the site would be necessary in order to make the slopes no steeper than four (4) feet horizontal to one (1) foot vertical. The Swift Creek Gypstack will be the permanent repository for phosphogypsum material produced as a byproduct of PCS chemical plant operation and there is no known or practicable means to reclaim the Swift Creek Gypstack site to mandatory phosphate reclamation requirements while the site is functioning as a Gypstack facility. Therefore, PCS has requested a variance from the provision of rule 62C , F.A.C., which provides minimum standards for mandatory phosphate mine reclamation. The Department has determined that since there is no known or practicable means to reclaim the Swift Creek Gypstack site to mandatory phosphate reclamation requirements while the site is functioning as a Gypstack facility it is in the public interest that a variance be issued from mandatory phosphate mine reclamation standards on reclamation programs SC-SP(3) and SC-84(1). The variance will be permanent. The approved conceptual reclamation plan (PCS-HC-CPC) shows the program s post-reclamation land use as industrial. The Swift Creek Gypstack is subject to both closure and financial assurance requirements under Chapter , F.A.C., and as such will be closed in accordance with the provisions of Chapter , F.A.C., under the oversight of the Department s Northeast District Office Industrial Wastewater Program. Details related to the closure of the phosphogypsum stack can be found in the General Closure Plan and Closure Cost Estimate on file with the Department s Northeast District Office Industrial Wastewater Program. The approved reclamation plans for programs SC-SP(3) and SC-84(1) originally required reclamation of nine acres and 52 acres of forested wetlands, respectively. Issuance of this variance will allow PCS to reclaim programs SC-SP(3) and SC-84(1) to industrial use, thereby reducing required wetland reclamation in the approved programs by 61 acres. As a consideration for the granting of this variance, PCS has agreed to convey a conservation easement to the Board of Trustees of the Internal Improvement Trust Fund over the Cabbage Head mitigation wetland area (132 acres, of which 123 acres are wetland) and the connection channel to Four Mile Branch (25 acres, of which 17 acres are wetland), both of which are shown on attached Sketch A-5779, within 90 days of release of the portion of reclamation program PCS-SR8715A covered by the Cabbage Head mitigation

3 Page 3 of 7 wetland area from further reclamation obligations, unless a later date is approved in writing by the Department. Before recording the conservation easement in land records, PCS agrees to provide the Department with a fully executed conservation easement, existing survey, legal description, Title, Possession and Lien Affidavit, and title insurance commitment. PCS agrees to give the Department an opportunity to review and edit these documents as they find necessary to ensure proper conveyance of the conservation easement. Furthermore, PCS agrees to address any exceptions to the title insurance commitment, such as judgments or liens, to the satisfaction of Department staff. PCS agrees to pay the costs to record the conservation easement in the Official Records of Hamilton County. Once recorded, PCS agrees to send the Department a copy of the recorded conservation easement reflecting the O.R. Book and Page. Lastly, PCS agrees to provide the Department with a title insurance policy for this conveyance within 90 days after the conservation easement is recorded in land records. Within six months after release of the portion of reclamation program PCS- SR8715A covered by the Cabbage Head mitigation wetland area from further reclamation obligation, PCS has further agreed to convey fee simple ownership over the Cabbage Head mitigation wetland area and the connection channel to Four Mile Branch to either the Board of Trustees of the Internal Improvement Trust Fund or the Suwannee River Water Management District. Before transfer of fee simple title to either Suwannee River Water Management District or the Board of Trustees of the Internal Improvement Trust Fund, PCS agrees to provide the accepting agency with any and all documentation its staff finds necessary to ensure proper conveyance of the fee simple title. Once recorded in land records, PCS agrees to provide the Department with a copy of the recorded deed reflecting O.R. Book and Page. The above-referenced conveyance of the conservation easement and fee simple title over the Cabbage Head mitigation wetland and the Four Mile Branch connection channel will satisfy the wetland reclamation requirement for reclamation programs SC-SP(3) and SC-84(1) and will also provide 79 acres of credit toward PCS obligations in Specific Condition 22a of Wetland Resource Permit (WRP) No , and will also satisfy Specific Condition 3 of WRP No This variance does not limit or otherwise alter the requirement for acrefor-acre, type-for-type wetland reclamation within the conceptual reclamation plan boundary of the Hamilton County Mine. All lands subject to the current variance will continue to be regulated under the closure and financial assurance requirements of Chapter , F.A.C. The Petitioner and interested parties having been advised of their rights under

4 Page 4 of 7 Chapter 120, F.S., and having failed or declined to file a Petition, pursuant to sections and , F.S., are hereby deemed to have waived those rights. Acceptance of the variance constitutes notice and agreement that the Department will periodically review this variance for compliance, including site inspections where applicable, and may initiate enforcement action for violation of the conditions and requirements thereof. This variance request complies with the standards and criteria of Chapters 211, Part II, and 378, Part III, F.S. and Chapter 62C-16, F.A.C. This approval does not warrant the suitability of subject lands for any current or proposed use and does not constitute a statement or admission concerning ownership of any interest in the subject lands. It is therefore: ORDERED by the State of Florida, Department of Environmental Protection, that the Petition of PCS Phosphate-White Springs, requesting a variance be and is hereby granted subject to the following conditions: 1. PCS shall convey a conservation easement to the Board of Trustees of the Internal Improvement Trust Fund over the Cabbage Head mitigation wetland (132 acres, of which 123 acres are wetland) and the connection channel to Four Mile Branch (25 acres, of which 17 acres are wetland), both of which are shown on attached Sketch A-5779, within 90 days of release of the portion of reclamation program PCS-SR8715A covered by the Cabbage Head mitigation wetland area from further reclamation obligations, unless a later date is approved in writing by the Department. Before recording the conservation easement in land records, PCS shall provide the Department with a fully executed conservation easement, existing survey, legal description, Title, Possession and Lien Affidavit, and title insurance commitment. The Department shall be given an opportunity to review and edit these documents as they find necessary to ensure proper conveyance of the conservation easement. Furthermore, PCS shall address any exceptions to the title insurance commitment, such as judgments or liens, to the satisfaction of Department staff. PCS shall pay the costs to record the conservation easement in the Official Records of Hamilton County. Once recorded, PCS shall send the Department a copy of the recorded conservation easement reflecting the O.R. Book and Page. Lastly, PCS shall provide the Department with a title insurance policy for this conveyance within 90 days after the conservation easement is recorded in land records. 2. Within six months after release of the portion of reclamation program PCS- SR8715A covered by the Cabbage Head mitigation wetland area from

5 Page 5 of 7 further reclamation obligation, PCS shall convey fee simple ownership over the Cabbage Head mitigation wetland area and the connection channel to Four Mile Branch to either the Board of Trustees of the Internal Improvement Trust Fund or the Suwannee River Water Management District. Before transfer of fee simple title to either Suwannee River Water Management District or the Board of Trustees of the Internal Improvement Trust Fund, PCS shall provide the accepting agency with any and all documentation its staff finds necessary to ensure proper conveyance of the fee simple title. Once recorded in land records, PCS agrees to provide the Department with a copy of the recorded deed reflecting O.R. Book and Page. 3. Reclamation programs SC-84(1) and SC-SP(3) are considered reclaimed to industrial use. Of the 376 acres in reclamation programs SC-84(1) and SC- SP(3), only 241 acres were actually mined for phosphate. The remaining 135 acres were only disturbed. The 241 mined mandatory acres within reclamation program SC-84(1) and the 55 mined mandatory acres within reclamation program SC-SP(3) (296 mined mandatory acres total) will contribute towards reclamation completed during the five-year period at the Hamilton County Mine. The reclamation programs SC- SP(3) and SC-84(1) are to be used, operated, and closed using best engineering practices and institutional controls in accordance with the conditions of the closure plan for the Swift Creek Gypstack (DEP Wastewater Facility ID No ). 4. This variance shall be applicable only to reclamation programs SC-SP(3) (A) and SC-84(1)(A) at PCS Hamilton County Mine. Any Party to this Order has the right to seek judicial review of the Order, pursuant to section , F.S., by the filing of a Notice of Appeal, pursuant to rule 9.110, Florida Rules of the Appellate Procedure, with the clerk of the Department in the Office of General Counsel, 3900 Commonwealth Boulevard, Mail Station 35, Tallahassee, Florida ; and by filing a copy of the Notice of Appeal accompanied by the applicable filing fees with the appropriate District Court of Appeal. The Notice of Appeal must be filed within 30 days from the date this Order is filed with the clerk of the Department. DONE AND ORDERED this day of, 2008, in Tallahassee, Florida. STATE OF FLORIDA, DEPARTMENT OF ENVIRONMENTAL PROTECTION

6 Page 6 of 7 Janet G. Llewellyn, Director Division of Water Resource Management Department of Environmental Protection 2051 E. Paul Dirac Drive Tallahassee, Florida (850) Copies provided to via Hamilton County Reclamation 2008 Benjamin Faure - DEP - Benjamin.Faure@dep.state.fl.us Chuck Schnepel USACE - Charles.A.Schnepel@saj02.usace.army.mil Craig Parenteau DEP - Craig.Parenteau@dep.state.fl.us Dock Glawson Bienville - Dock2775@aol.com Gregory Hitz Lampl Herbert Consultants gmhitz@lampl-herbert.com Jeff Dodson Mosaic - Jeff.Dodson@mosaicco.com Joe Crocker PCS - JCrocker@pcsphosphate.com Joseph Bakker Consultant - joebakker549@msn.com Julie Stone - julietstone@charter.net Linda Foy - de la Parte & Gilber t- lfoy@dgfirm.com Loren Mason USACE - loren.m.mason@saj02.usace.army.mil Mark Latch DEP - Mark.Latch@dep.state.fl.us Mark Peterson USACE mark.e.peterson@usace.army.mil Mary Ann Poole FWCC - MaryAnn.Poole@MyFWC.com Mike Adams - Hamilton County - district2@hamiltoncountyflorida.com Mike Batts - Phoenix Environmental - mbatts@tpegi.org Randy Ogburn - Hamilton County - district4@hamiltoncountyflorida.com Richard Owen - DEP- Richard.Owen@dep.state.fl.us Ronny Morgan - Hamilton County - district1@hamiltoncountyflorida.com Scott R. Koons NCFRPC - koons@ncfrpc.org Scott Shirley ASR Legal sshirley@asrlegal.com Scott Thomas Bienville - bienville1@aol.com Susan Stephens Hopping Green & Sams susans@hgslaw.com T.M. Gurr Gurr Professional Services tmgurr@gte.net Tim King FWCC - Timothy.King@MyFWC.com Traci Wallace FWCC - Traci.Wallace@MyFWC.com West Palmer Hardee County west.palmer@hardeecounty.net Bureau of Mine Reclamation File

7 Page 7 of 7 CERTIFICATE OF SERVICE The undersigned duly designated deputy clerk hereby certifies that this FINAL ORDER, and all copies, was mailed before the close of business on 2008, to the above listed persons. FILING AND ACKNOWLEDGMENT FILED, on this date with the designated Department Clerk, pursuant to subsection (11), Florida Statutes, receipt of which is hereby acknowledged. Clerk Date Please see PDF version for Exhibits.