Dalton 2 FUP & DNR.pdf

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STATEWIDE MATERIAL SITE INVENTORY

MATERIAL SITE

INSPECTION REPORT

Federal Project No. STP-000S(530)

AKSAS Project No. 76174

DALTON HIGHWAY

MS 65-9-102-2

November 2, 2009

CONTENTS PAGE

COVER SHEET

LOCATION MAP

SITE MAP ........................................................................................................ 3A & 3B

INSPECTION FORM ....................................................................................... 4 thru 10

CATEGORY:

ACTIVE –OPEN

According to information found in the DOT&PF EDMS system in January 2009 and DNR case file abstracts, this site lies on State of Alaska lands managed by DNR. The site was not developed during Dalton Highway or Alyeska Pipeline construction. DOT&PF is operating under a negotiated material sales contract (ADL 416891) which expires April 22, 2015. The site has had multiple users and material has reportedly been utilized for the Deadhorse Airport and for oilfield pads. The DNR material sale contract for DOT&PF states: “DNR will approve extraction of material from this site only in Section 1 Township 9, Range 14E UM; Section 36, Township 10N, R14E, UM will be used as a staging area and for access to the mined area.” The reclamation plan states the site “will be reclaimed for fish use”. The University of Alaska Fairbanks had a permafrost measurement site approximately 500 feet south of the site limits on the west side of the highway. There is an existing access road connecting the site to the Dalton Highway. The DOT&PF site limits abut the Dalton Highway right-of-way. The site appears to contain significant quantities of sand and gravel and should be retained by DOT&PF for future use.

DRAFT MATERIAL SITE INSPECTION FORM

PREPARED BY:

R&M CONSULTANTS, INC. Page 4 MS-65-9-102-2

1. MS_ID

Enter the full material site number e.g.. 65-9-045-2

2. DATE_INSPECT

Date of field inspection

3. FLD INSPEC_ORG

Name of inspector / Organization or Company

4. REGION

5. LOCATION

Name of Highway

6. MILEPOST

List the closest main highway milepost

7. NAME

Enter commonly used name (s), e.g. Hess pit, Gobblers Knob, Midway. List all that apply separated by commas.

8. MAINT_DIST/STAT Station Highway Maintenance District and Station, for locations not on highways select other.

9. QUAD

U.S.G.S. Quad. Map

10. TOWNSHIP T#S R#E Meridian /RANGE Section

11. COOR_UTM 12. COOR_STATE_PLANE

ZONE ZONE

UTM WGS84 - Meters

13. BOROUGH TAX ID NO.

14. DNR_LAND_USE_PLAN

15. CATEGORY (To be filled in the office)

15a. CLASSIFICATION

15b. STATUS

IF OTHER IS SELECTED FOR A SECTION, EXPLAIN IT IN SECTION 44. NOTES.

IF AN ANSWER IS UNKNOWN SELECT "UNKNOWN" OR LEAVE BLANK

65-9-102-2

7/9/2009 & 7/10/2009

AARON BANKS / R&M CONSULTANTS

NORTHERN

DEADHORSE

DALTON HIGHWAY

INTERIOR/DALTON

7,785,370

444,511EASTING

ACTIVE

411.5

BEECHEY POINT

District

NORTHING

A-3

T9N R14E

EASTING 1,831,049

36 & T10N R14E Section 1

THIS REPORT IS BASED ON A REVIEW OF EXISTING DATA AND BRIEF FIELD INSPECTIONS. THUS THE

DATA CONTAINED HEREIN SHOULD BE CONSIDERED PRELIMINARY AND USED FOR PLANNING

PURPOSES ONLY. USERS OF THIS DATA SHOULD VERIFY THE INFORMATION PRIOR TO USING IT FOR

DESIGN OR CONSTRUCTION PURPOSES.

UM

Alaska State Plane NAD83 - Survey Feet

DALTON HIGHWAY MASTER PLAN

5,913,549

Enter Name of Facility or Secondary Route Name (i.e.Kotzebue Airport, Nash Road, etc.)

OPEN

NORTH SLOPE BOROUGH

NORTHING

PREPARED BY:

R&M CONSULTANTS, INC. Page 5 MS-65-9-102-2

16. POTENTIAL_STATUS

Estimated quantity of material in the site at the time of inspection.

The pit has not been mined (used only for new sites).

17. PRESENT_USERS

17a. PRESENT_USER_1

17b. PRESENT_USER_2

17c. PRESENT_USER_3

18. PERMITTED _ACREAGE

Area within site permit or R.O.W. boundaries, from permit application or property plat.

19.

Area within an existing pit, excluding spoil berms lying outside the pit, access roads etc. Explain below.

20. ACREAGE_COMP_METHOD

Method used to determine developed acreage.

21. EST_QUAN_AVAIL

Estimated quantity available (b.c.y.), may be based on acreage computed above plus expansion area.

Explain computation assumptions and calculations below.

OTHER The site does not fit any of the categories above. Explain in Section 44, Notes.

There appeared to be no useable material in the site.

There appeared to be less than 25,000 c.y. available within the developed site.

There appeared to be greater than 25,000 c.y. available within the developed site.

EXPANDABLE

SIGNIFICANT

DEVELOPED_ACREAGE

SIGNIFICANT

2,600,000

DOT&PF CONSTRUCTION

There may be useable material left in the pit but it is not available.

OTHER USER

NONE

The site covered approx. 187 acres in Section 1 (area permitted to mine) with about 34 acres having been developed. There is an average 8 feet of overburden, composed of silt and organics in the undisturbed area and spoil in the disturbed area. Assuming that approx. two thirds of the site will be useable (~100 acres) due to permit limitations and overburden stockpiling plus a 30-foot working depth, there is approx. 2,600,000 c.y. (100 acres x 22 feet x 1,000 c.y. per acre-foot) in the undisturbed area. By moving the waste berms into the existing excavations, about one-half of the developed area may be mined and approx. an additional 374,000 c. y. (17 acres x 22 feet x 1,000 c.y. per acre-foot) would become available in the disturbed area. Additionally, it may be possible to deepen the pit by bailing if the permafrost thaws. It should be noted that there are other users in this site and the estimated quantity available is for all users.

UNKNOWN

UNDEVELOPED

CLOSED

There was approximately 65 acres developed in the site with approx. 34 acres in Section 1.

ROUGH ESTIMATE

LIMITED

There was limited material within the developed site, but there appeared to be significant material outside existing site limits.

FROM MAP/PHOTO

DOT&PF MAINTENANCE

PREPARED BY:

R&M CONSULTANTS, INC. Page 6 MS-65-9-102-2

22. ACCESS_TYPE

NONE No access road has been built.

EXISTING ROAD / OPEN Drivable. May have gate.

EXISTING ROAD / REVEG Can be reopened with little effort.

EXISTING ROAD / CLOSED W/BERMS Can be reopened with little effort.

EXISTING ACCESS / REMOVED Can be reopened with much effort.

SNOW ROAD Can only be accessed during winter.

ICE ROAD Requires crossing river or lake ice in the winter.

BARGE Material can only be moved by barge.

OTHER

23. ACCESS_LENGTH

Approx. length from edge of pit to highway/secondary route (ft.)

24. VEGETATION

25. TYPE_1 26. TYPE_2

Dominant type Subordinate type General Types of Materials Available

Bedrock sources requiring blasting Soils or soft bedrock (rippable), above water table Requires production below the water table Sand/gravel bars in active channels

27. OB_CLASS_1 28.

New Site or expansion Area Existing Pit (Spoil) A site may have both. Data should be based on actual subsurface exploration, otherwise unknown.

Estimated average depth over the area.

NONE 3 TO 6 FT. UNKNOWN

<3 FT. >6 FT. OTHER

29. OB_TYPE_1 30. OB_TYPE_2

New Site or expansion Area Existing Pit (Spoil) A site may have both.

SILT PEAT SOLID WASTE OTHER

COLLUVIUM SPOIL UNKNOWN

RIVER BAR

QUARRY

BORROW PIT

BAILING

Enter data in Type_2 only if two types of material site available

SILT

BORROW PIT BAILING

The site does not fit any of the categories above. Describe in Section 44, Notes.

SPOIL

Arctic tundra and grasses.

>6 FT. OB_CLASS_2

EXISTING ROAD / OPEN

>6 FT.

PREPARED BY:

R&M CONSULTANTS, INC. Page 7 MS-65-9-102-2

31. MAT_TYPE_1 32. MAT_TYPE_2

Dominant type Subordinate type

Bedrock sources requiring blasting Bedrock sources requiring ripping Water deposited sand and gravel, includes glaciofluvial ` Glacial till Talus slopes, etc.

Sand Dunes, etc.

Silt deposits, loess, fluvial, etc.

33. PERMAFROST_1

New Site or Expansion Area

34. PERMAFROST_2

Existing Site

DETECTED IN MOST TEST HOLES

DETECTED IN SOME TEST HOLES

DETECTED IN IMMEDIATE VICINITY

DETECTED IN NO TEST HOLES

DATA OUTDATED

UNKNOWN

OTHER

35. GROUNDWATER

BEDROCK

FLUVIAL

FLUVIAL

The water table is perched on the underlying permafrost during the summer. The exposed water table was noted to be approximately 25 feet below the natural ground surface during the July 2009 inspection. Water level marking stakes were also noted and indicate a water table fluctuation of at least six feet.

DATA OUTDATED

DETECTED IN MOST TEST HOLES OR PITS

GLACIAL

SILT

COLLUVIAL

EOLIAN

WEATHER. BEDROCK

PREPARED BY:

R&M CONSULTANTS, INC. Page 8 MS-65-9-102-2

36. LITHOLOGY_1 37. LITHOLOGY_2

Dominant type

IGNEOUS ROCK Undifferentiated Igneous Rocks GRANITIC Granite/Monzonite/Granodiorite DIORITE/GABBRO Diorite/Gabbro BASALT Dark colored fine-grained Igneous Rocks GREENSTONE Altered Volcanic Rocks w/green tint

METAMORPHIC ROCK Undifferentiated Metamorphic Rocks SCHIST/PHYLLITE Includes rocks ranging from slate to schist GNEISS Includes hard schistose rocks

MARBLE

CATACLASTIC Incl. Valdez Formation Rocks, Kenai Penn.

MÉLANGE Incl. McHugh Formation Rocks, Kenai Penn.

SEDIMENTARY ROCK Undifferentiated Sedimentary Rocks

CONGLOMERATE

SANDSTONE Includes greywacke, etc.

SHALE/MUDSTONE

LIMESTONE

FLUVIAL River and stream deposits (floodplain), includes outwash.

ALLUVIAL Alluvial / Debris Fan deposits GLACIOFLUVIAL Eskers, kames, etc.

GLACIAL Till COLLUVIAL Talus, etc.

EOLIAN Sand Dunes, etc.

SILT Loess, fluvial silts, etc.

OTHER Explain in Section 44.

38. MATERIAL_CLASSIFICATION

ASTM Classification, generally they should range from coarse to fine.

38a. GW-GM 38c. SM 38e. 38g.

38b. GP-GM 38d. 38f. 38h.

Subordinate type

FLUVIAL

PREPARED BY:

R&M CONSULTANTS, INC. Page 9 MS-65-9-102-2

39. COBBLES_AND_BOULDERS

Test Boring Callout / ASTM Classification, either a. or b. and c. (Can use ranges i.e. 0 to 20)

39a. CONTAINS

39b. Est. % by VOL. (Est. From Visual Observations)

39c. MAX. SIZE (in.) (Observed Size)

40. AGG_TEST_RESULTS

Year of test or report- Test result / Year of test or report- Test Results

40a. SG APP COARSE 40b. SG APP FINE 40c. ABSORPTION CRSE 40d. ABSORPTION FINE 40e. NORDIC ABRASION 40f. L.A. ABRASION 40g. DEGRADATION (T-13) 40h. NASO4 LOSS COARSE 40i. NASO4 LOSS FINE

41. POTENTIAL_USABILITY

Best known potential use of the material, based on records, exploration and laboratory data.

CONCRETE AGGREGATE PRODUCED The site has produced concrete aggregate PAVING AGGREGATE PRODUCED The site has produced paving aggregate CRUSHED PRODUCTS PRODUCED Base, Surface Coarse, Subbase, etc. has been produced.

TYPE A AND B MATERIAL AVAILABLE 0 to 10 percent passing 200 TYPE C AVAILABLE Compactable material TYPE C NOT AVAILABLE Uncompactable material (Lower Kuskokwim and Yukon River, etc.)

UNKNOWN

OTHER Explain in Section 44.

42. SPECIAL_PROBLEMS

Special problems encountered or anticipated with use of the material, based on records, exploration and laboratory data.

ORGANIC CONTENT The material is very difficult to compact.

HIGHLY WEATHERED GRAVEL The gravel is highly weathered and may break down when handled.

BREAKS DOWN UNDER USE Material breaks down on grade.

SENSITIVE TO WATER CONTENT Material is sensitive to water content, i.e.. some glacial tills, soft bedrock.

VARIABLE MATERIAL Deposit contains mixture of suitable and unsuitable material.

POSSIBLE CONTAMINATION Site may be contaminated by petroleum products or hazardous materials.

CONTAINS ASBESTOS Site contains naturally occurring asbestos.

POTENTIAL ASBESTOS Site in area where naturally occurring asbestos is mapped.

ACID ROCK DRAINAGE Site contains rock susceptible to producing acid rock drainage.

UNKNOWN

OTHER Explain in Section 44, Notes.

2002- 2.2 2002- 1.6

2002- 81, 84, 84, 88

2002- 17, 18

TYPES A AND B MATERIAL AVAILABLE

PREPARED BY:

R&M CONSULTANTS, INC. Page 10 MS-65-9-102-2

43. RIPRAP

Class II or larger. Does not include production for erosion control riprap for ditches or culverts.

PREVIOUS PRODUCTION There is a record of production.

POSSIBLE FURTHER INVESTIGATION NEEDED The site is a bedrock quarry containing hard rock NOT POSSIBLE The site has soft rock or soil.

UNKNOWN

OTHER Explain in Section 44, Notes.

44. NOTES

Note number of item being discussed.

NOT POSSIBLE

17c: Alaska Interstate Construction had a contract to remove gravel from the site (ADL 418125) that expired 11- 20-2008. DNR has left the case file open with the comment "Due to inability to extract gravel from MS 102 DNR has not closed this file but will see if AIC would like to extend their contract."

17c; Peak Oilfield Service Company has a complete application with DNR (ADL 417931) that reportedly expired on 12-01-2008 and a closed contract (ADL 417945) that expired on 12-01-2008.

17c: Jack Barber has a material contract (ADL 417866) issued in 2006 that may still be active.

17c. Brice, Inc. had a material contract (ADL 417861) issued in 2006 that expired 4-9-2009.

Brian Roberts

SOA/DOT&PF Northern Region ROW CHIEF 4/5/2024

STATE OF ALASKA

DEPARTMENT OF NATURAL RESOURCES

DIVISION OF MINING, LAND AND WATER

X Northern Region

3700 Airport Way Fairbanks, AK 99709

(907) 451-2740

Southcentral Region 550 W 7th Ave., Suite 900C Anchorage, AK 99501-3577

(907) 269-8552

Southeast Region 400 Willoughby, #400 Juneau, AK 99801

(907) 465-3400

MATERIAL SALE CONTRACT

AS 38.05.550 – 38.05.565

Issuance Date: Expiration Date:

ADL 419959 July 3, 2025

Under AS 38.05.550-38.05.565 (Disposal of Materials) and AS 38.05.810(a) (Public and Charitable Use) and the regulations implementing these statutes, the State of Alaska, Department of Natural Resources (DNR), the seller, whose address is 3700 Airport Way, Fairbanks, Alaska 99709, agrees to sell, and the State of Alaska, Department of Transportation and Public Facilities (DOT&PF), the buyer, whose address is 2301 Peger Road, Fairbanks, Alaska 99709, agrees to buy the material designated in this contract, subject to the provisions that follow:

1. Description: Location, Material, Quantity, and Price.

(a) The material sale area covered by this contract consists of approximately 427.1 acres. This area is designated by the boundaries shown on the attached sale area map, which is made a part of this contract, or as designated on the ground by the seller, and described as follows:

MS 65-9-099-2 located at MP 390 on the eastside of the Dalton Highway, that portion lying east of the Dalton Highway Right-of-Way (ROW) and west of the of Trans Alaska Pipeline System (TAPS) ROW within Section 12, Township 6 North, Range 13 East, Umiat Meridian

(b) The material to be removed and the price are:

Type of Material No. of Units Unit Price ** Total Price **

Gravel with silt & sand 3,000,000cy $0.50 **

** 11 AAC 05.010(e)(16) requires state, federal and local agencies to pay for materials used in constructing, reconstructing or maintaining a public project as follows: 1) no charge for the first 5,000 cy of material to be used on a project (each year of maintenance constitutes a separate project); and 2) material in excess of 5,000 cy will be charged at the unit price listed in the annual base price schedule established under 11 AAC 71.090 (currently $ 0.50 cy).

2. Payments and Deposits. No part of the materials sold under this contract may be extracted from the sale area by the buyer except in accordance with the following terms:

(a) The buyer shall remit an earnest money deposit in the amount of $ N/A (consistent with 11 AAC

71.045 or 11 AAC 71.065, and no less than $250) along with the bid for a competitive sale contract or at the time a negotiated sale buyer signs this contract. The seller will retain the deposit to cover

Material Sale Contract ADL 419959 Page 2 of 9 102-137 (Rev. 10/01) administrative costs incurred in offering the material sale, except that if the buyer removes and pays for at least 75% of the material volume covered by this contract, the deposit may be applied, in whole or in part, to the final payment that becomes due under this contract.

(b) Additional periodic installment payments as required in paragraph 2(c) must be made for material extracted as of the date payment becomes due but may not exceed the total purchase price.

(c) Each periodic installment payment becomes due and payable on January 31 of each year without prior notice to the buyer, for the value of material extracted during the calendar year of January 1 through December 31. The installment must be based on records required in paragraph 3 of this contract and must be submitted to the seller no later than January 31 of each year.

(d) An annual report is due by January 31 of each year, without prior notice to the buyer that details the volume of material removed during the calendar year of January 1 through December 31. This report shall be filed regardless of whether material was removed during the reporting period. Failure to file the report by the deadline may result in suspension of the contract and financial penalties. A final accounting and payment for material removed, and a completion statement, must be submitted no later than 30 days following contract completion, or when the contractor has completed removal under the contract, or following termination of the contract by the seller or by operation of law. Whether completion is satisfactory will be decided by the Director of the Division of Mining, Land & Water (DMLW) within 30 days after receiving the final accounting report and completion statement.

(e) If the buyer fails to make a payment provided for in this contract, the seller may, under paragraph 8(b) of this contract, order all material extraction suspended immediately. Materials extracted by the buyer during any period of suspension are considered taken in trespass and are to be charged to and paid for by the buyer at triple the unit contract price. Resumption of the lawful taking of materials may be authorized, in writing, by the DMLW only after the payments in arrears plus the penalty provided for in paragraph 2(f) have been paid.

(f) Material extraction in excess of the contract amount will be considered taken in trespass and at the discretion of the Director, DMLW, Lands Section, charged to and paid for by the buyer at no less than triple the current unit fair market value as established periodically by the Northern Regional Office or up to three times the pecuniary gain realized by the buyer as a result of the trespass. Said trespass penalties are in additional to any other administrative or legal proceedings imposed by state law.

(g) Late Payment Penalty will be the greater of either the fee specified in 11 AAC 05.010 or interest at the rate set by AS 45.45.010(a) will be assessed on a past-due account until payment is received by the seller.

(h) All payments and deposits must be remitted to the DMLW and must be made payable to the Alaska Department of Revenue.

(i) The following special provisions also apply to payments and deposits under this contract:

Should the administrative base price be changed during the term of this contract, the new price will be effective and apply to the material remaining to be extracted under this contract as of the effective date of the price adjustment.

3. Method of Volume Determination.

(a) The method of volume determination for purposes of payment under this contract, along with any special provisions applicable to volume determination, is:

(1) Based on a loose cubic yard quantity as determined by an "in-place" measurement multiplied by a factor of 1.3; or, Material Sale Contract ADL 419959 Page 3 of 9

(2) Based on a loose cubic yard quantity as determined by a daily vehicle count designating type of vehicle and vehicle capacity.

(b) The buyer shall keep accurate and up-to-date records of all materials extracted. These records are subject to verification by check measure and inspection of the buyer's books by the seller at any time without notice.

(c) All measurements are to be made by or under the direct supervision of buyer personnel acceptable to the seller, including a qualified engineer where the seller deems appropriate, with quantities certified by that person.

4. Operating Requirements.

(a) Boundary Lines and Survey Monuments. No boundary mark of the sale area or any survey line or witness tree for any survey corner or monument may be severed or removed, nor may any survey corner or monument be damaged or destroyed. Any violation of this clause requires the buyer to bear the expense of re-establishing the line, corner, or monument by a registered surveyor in a manner approved by the seller.

(b) Location. The buyer is responsible for the accurate location of operations under this contract, including any survey that may be necessary for accurate location unless otherwise specified in this contract.

(c) Survey. An as built survey of the material site is not required at this time.

(d) Extraction Area. This contract authorizes removal of material only from the area defined in Section 1(a) of this contract. The buyer is responsible for properly locating the material site and the working limits within that area, as shown on the attached map.

(e) Potential Processing Activities and Other Authorizations. The issuance of this authorization does not alleviate the necessity of the purchaser to obtain authorizations required by other agencies for this activity. Any asphalt processing or related activities and associated structures will not be allowed without prior approval from DNR, the Department of Environmental Conservation and other agencies that require authorizations from the buyer.

(f) Standard of Operations. The buyer shall properly locate the buyer's operations and buyer's improvements within the sale area, and may not commit waste, whether ameliorated or otherwise. In addition to complying with all laws, regulations, ordinances, and orders, the buyer shall maintain the land in a reasonably neat and clean condition. No construction material, fill, waste asphalt, damaged culverts or any other debris shall be stockpiled within pit boundaries. Stockpiled material and/or overburden shall not be placed in wetlands. After completion, expiration, or termination of the contract, the site will be left in a condition that is acceptable to the seller, and reclaimed in accordance with the approved reclamation plan.

(g) Erosion Control and Protection of Waters. Operations in connection with this contract must be conducted so as to avoid damage to streams, lakes, or other waters and land adjacent to them.

Vegetation and materials may not be deposited into any stream or other waters. Locations and improvements necessary for stream crossings for haul roads must be approved in advance by the seller.

All roads to be abandoned must be treated with measures necessary to prevent erosion in a manner acceptable to the seller. Any damage resulting from failure to perform these requirements must be repaired by the buyer to the satisfaction of the seller. Waters include waters defined in 5 AAC 95.010, Protection of Fish and Game Habitat.

(h) Roads. Before constructing any main haul, secondary or spur road across state land, the buyer shall obtain written approval of the proposed location and construction standards of the road from the seller.

Material Sale Contract ADL 419959 Page 4 of 9

Road construction must be conducted so as to avoid damage to streams, lakes, or other waters and land adjacent to them.

(i) Water Quality. The buyer shall comply with the State of Alaska water quality standards pursuant to 18 AAC 70, including discharge standards when conducting material washing operations.

(j) Other Authorizations. The issuance of this authorization does not alleviate the necessity of the purchaser to obtain authorizations required by other agencies for this activity.

(k) Fire Protection. The buyer shall take all necessary precautions for the prevention of wildfires and is responsible for the suppression, and must bear the suppression costs, of all destructive or uncontrolled fires occurring in or outside the sale area resulting from any of the buyer's operations under this contract.

The buyer shall comply with all laws, regulations, and ordinances promulgated by all governmental agencies responsible for fire protection in the area.

(l) Supervision. The buyer shall maintain adequate supervision at all times when operations are in progress to ensure that the provisions of this contract and all applicable federal, state, and local laws, regulations, and ordinances governing the operations are enforced. At all times when operations are in progress, the buyer, or a person authorized by the buyer to assume the responsibilities imposed by this contract, shall be present on the sale area.

(m) Agents. The provisions of this contract apply with equal force upon an agent, employee, or contractor designated by the buyer to perform any of the operations relating to extraction of the materials sold under this contract. The buyer is liable for noncompliance caused by any such agent, employee, or contractor.

(n) Access. The seller makes no representations that it will construct or maintain access to the land.

Access over any route not under the seller's control is the responsibility of the buyer. The buyer agrees that any permanent access or right-of-way obtained over privately owned property will provide a permanent easement to the seller.

(o) Alaska Historic Preservation Act. The buyer will consult the Alaska Heritage Resources Survey (907) 269-8721 so that known historic, archaeological and paleontological sites may be avoided. The Alaska Historic Preservation Act (AS 41.35.200) prohibits the appropriation, excavation, removal, injury, or destruction of any state-owned historic, prehistoric (paleontological) or archaeological site without a permit from the commissioner. Should any sites be discovered during the course of field operations, activities that may damage the site will cease and the Office of History and Archaeology in the Division of Parks and Outdoor Recreation (907) 269-8721 and will be notified immediately.

(p) Vehicle Maintenance. Vehicle maintenance will be performed only over an effective impermeable barrier.

(q) Fuel and hazardous substances. No fuel or hazardous substances are to be stored on the subject parcel. Prior written approval from the seller is required for a change in this restriction. Such approval may include additional operating requirements and a change in the amount required for the performance guarantee. The disposal of hazardous substances or hydrocarbons is prohibited.

(r) Notification. The buyer will immediately notify the Department of Natural Resources and the Department of Environmental Conservation by phone of any unauthorized discharges of oil to water, any discharge of hazardous substances (other than oil), and any discharge of oil greater than 55 gallons solely to land and outside an impermeable revetment. If a discharge of oil is greater than 10 gallons but less than 55 gallons it must be reported within 48 hours by phone or fax. If a discharge is less than 10 gallons it may be reported in writing on a monthly basis. If an unauthorized discharge greater than 55 gallons is made to a secondary containment, it must be reported within 48 hours by phone or fax. All fires and explosions must also be reported. The DNR 24 hour spill report number is (907) 451-2678; the fax

Material Sale Contract ADL 419959 Page 5 of 9 number is (907) 451-2751. The DEC oil spill report number is (800) 478-9300. DNR and DEC will be supplied with all follow-up incident reports.

(s) Reclamation. Upon completion, expiration, or termination of the contract, the site will be left in a condition that is acceptable to the DMLW and reclaimed in accordance with the DNR approved Mining and Reclamation Guidelines. Reclamation shall be to the standards of the DMLW and shall include repair of access roads to and within the site, disposal of remaining stockpiles, other procedures that will be used to stabilize and reclaim the area and any other site specific measures that may be necessary. This contract is subject to the attached approved Mining and Reclamation Guidelines in accordance with AS 27.19.

Prior to use of the site for any project, the contractor or user shall submit a Project Mining and Reclamation Plan, in accordance with AS 27.19 and 11 AAC 97, to DNR for approval, subject to DOTPF review. The Plan describes the proposed plan of operation and shall be in compliance with guidelines listed in the approved DOTPF Mining and Reclamation Guidelines. Upon approval, the Plan will be followed by the contractor or user. The Plan should include a sketch map, narrative, and supplements and amendments as outlined in the DOTPF Mining and Reclamations Guidelines.

(t) SWPP and APDES. The buyer shall comply with the requirement of the Alaska Pollutant Discharge Elimination System (APES) and if applicable, to maintain and operate the site in accordance with an approved Storm Water Pollution Prevention Plan (SWPP).

(u) Use of Material. This contract authorizes the excavation and use of material for the express purpose of providing material for construction and maintenance of public projects.

(v) Project Specific Operating Requirements.

(1) Alyeska access road buffer. This material sale is subject to the Alyeska private easement

(ADL 403064) 133-APL/AMS-3.

(2) Trans-Alaska Pipeline System (TAPS) buffer. A 200’ buffer between TAPS and mining activities must be maintained. A low gravel berm (~3 to 4 feet high) shall be installed and maintained along the easterly edge of the pit. And, a 4H:1V side slope should be maintained at all times along the easterly pit boundary (pipeline side) of any portion of the pit edge is within 300 feet of the pipeline.

(3) Invasive Species. Implement best management practices for minimizing the introduction and proliferation of invasive plant species, including thoroughly washing equipment before deploying onsite. This is particularly important for work at sites adjacent to rivers, where introduced species can be transported downstream and spread throughout areas that would not otherwise be exposed to invasive species.

(4) Land Clearing Activities. The Migratory Bird Treaty Act (MBTA) prohibits the willful killing or harassment of migratory birds. To protect nesting migratory birds and to ensure compliance with the MBTA, it is recommended that initial land disturbing activities be completed before June 1 or after July 31 in Northern Alaska. This will render the area unsuitable for breeding birds prior to their spring arrival and would minimize the likelihood for impacts to nesting birds. Guidelines for timing land clearing to protect nesting birds can be found at http://alaska.fws.gov/fisheries/fieldoffice/anchorage/pdf/vegetation_clearing.pdf.

(5) Eagle Nests. The Bald Eagle and Golden Eagle Protections Act protects eagles from take, as well as disturbance of their nests, roosts, and foraging sites. Should an eagle nest be observed within ½ mile the project area at any time during the project, contact the FWS Regional Office at 907-786-3685 or at permitsR7MB@fws.gov.

5. Indemnity of Seller and Bonding. Not applicable.

(a) The buyer shall indemnify and hold the seller harmless from:

http://alaska.fws.gov/fisheries/fieldoffice/anchorage/pdf/vegetation_clearing.pdf mailto:permitsR7MB@fws.gov

Material Sale Contract ADL 419959 Page 6 of 9

(1) all claims and demands for loss or damage, including property damage, personal injury, wrongful death, and wage or employment claims, arising out of or in connection with the use or occupancy of the land or operations by the buyer or the buyer's successors, or at the buyer's invitation; and

(2) any accident or fire on the land; and

(3) any nuisance on the land; and

(4) any failure of the buyer to keep the land in a safe and lawful condition consistent with applicable laws, regulations, ordinances, or orders; and

(5) any assignment, sublease, or conveyance, attempted or successful, by the buyer that is contrary to the provisions of this contract.

The buyer will keep all goods, materials, furniture, fixtures, equipment, machinery, and other property on the land at the buyer's sole risk, and will hold the seller harmless from any claim of loss or damage to them by any cause.

(b) At the seller's discretion, a buyer may be required to file a bond designed to ensure the buyer's performance and to help protect the seller against any liability that may arise as a result of the activities of the buyer. If required, a bond acceptable to the seller in the amount of $N/A must be filed with the seller at the time of execution of this contract to ensure the buyer's performance and financial responsibility.

6. Improvements and Occupancy.

(a) Any improvements or facilities including crushers, mixing plants, buildings, bridges, roads, etc., constructed by the buyer in connection with this sale and within the sale area must be in accordance with plans approved by the seller.

(b) The buyer must, within 60 days after contract completion or termination of the contract by the seller or by operation of law, remove the buyer's equipment and other personal property from the sale area. After removal, the buyer must leave the land in a safe and clean condition that is acceptable to the seller. If the buyer can demonstrate undue hardship, the time for removal of the improvements under this paragraph may be extended at the seller's discretion.

(c) If any of the buyer's property having an appraised value in excess of $10,000, as determined by the seller, is not removed within the time allowed, that property may, upon 30 days' notice to the buyer, be sold at public auction under the direction of the seller. The proceeds of the sale will inure to the buyer after satisfaction of the expense of the sale and deduction of all amounts then owed to the seller. If there are no other bidders at the sale, the seller may bid on the property, and the seller will acquire all rights, both legal and equitable, that any other purchaser could acquire through a sale and purchase.

(d) If any of the buyer's property having an appraised value of $10,000 or less, as determined by the seller, is not removed within the time allowed, title to that property automatically vests in the seller.

(e) Special provisions. Special provisions applicable to improvements and occupancy under this contract are listed in paragraph 4 of this contract.

7. Inspection.

(a) The seller must be accorded access, at all times, to the sale area and to the books and records of the buyer, the buyer's contractors, and any sub-contractors relating to operations under this contract for purposes of inspection to assure the faithful performance of the provisions of this contract and other lawful requirements.

Material Sale Contract ADL 419959 Page 7 of 9

(b) At all times when construction or operations are in progress, the buyer shall have a representative readily available to the area of operations who is authorized to receive, on behalf of the buyer, any notices and instructions given by the seller in regard to performance under this contract, and to take appropriate action as is required by this contract.

8. Termination and Suspension.

(a) The seller may terminate the buyer's rights under this contract if the buyer breaches the contract and fails to correct this breach within 30 days after written notice of the breach and an opportunity to be heard.

(b) If the buyer fails to comply with any of the provisions of this contract, the seller may shut down the buyer's operations upon issuance of written notice, until corrective action, as specified by the seller in its notice, is taken. If this corrective action is not taken within 30 days after written notice is served upon the buyer, the seller may terminate the contract under paragraph 8(a) of this contract. The buyer's failure to take immediate corrective action when ordered to remedy dangerous conditions or unwarranted damage to natural resources may be corrected by the seller to prevent danger or additional damage. Any cost incurred by the seller as a result of this corrective action, or by the buyer's failure to take corrective action, must be paid by the buyer.

(c) This contract may also be terminated by mutual agreement of both parties on terms agreed to in writing by both parties.

9. Reservations. The seller reserves the right to permit other compatible uses, including the sale of materials, on the land in the sale area if the seller determines that those uses will not unduly impair the buyer's operations under this contract. Under AS 38.05.125 the seller further expressly reserves to itself, and its successors, forever,

(a) all oil, gas, coal, ores, minerals, fissionable materials, geothermal resources, and fossils of every kind, that may be in or upon the land described above, or any part of it; and

(b) the right to explore the land for oil, gas, coal, ores, minerals, fissionable materials, geothermal resources, and fossils; and

(c) the right to enter by itself or its agents, attorneys, and servants on the land, or any part of it, at any time for the purpose of opening, developing, drilling, and working mines or wells on this or other land and taking out and removing from it all oil, gas, coal, ores, minerals, fissionable materials, geothermal resources, and fossils; and

(d) the right by itself or its agents, attorneys, and servants at any time (1) to construct, maintain, and use all buildings, machinery, roads, pipelines, powerlines, and railroads; (2) to sink shafts, drill wells, and remove soil; and (3) to occupy as much of the land as may be necessary or convenient for these purposes; and

(e) generally all rights to and control of the land, that are reasonably necessary or convenient to make beneficial and efficient the complete enjoyment of the property and rights that are expressly reserved.

10. Inclusion of Applicable Laws and Regulations. The buyer shall comply with all laws and regulations applicable to operations under this contract, including the provisions of AS 27.19 and 11 AAC 97 regarding mining reclamation, the provisions of AS 41.15 for wildfire prevention and control, the provisions of AS 38.05.550 - 38.05.565, material sale regulations 11 AAC 71, state fish and game regulations pertaining to the protection of wildlife and wildlife habitat, and state regulations pertaining to safety, sanitation, and the use of explosives. These laws and regulations are, by this reference, made a part of this contract, and a violation of them is cause for termination or suspension of this contract in addition to any penalties prescribed by law. These laws and regulations control if the terms of this contract are in conflict with them in any regard.

Material Sale Contract ADL 419959 Page 8 of 9

11. Assignment. This contract may not be assigned by the buyer without the seller's prior written consent to the assignment.

12. Permits. Any permits necessary for operations under this contract must be obtained by the buyer before commencing those operations.

13. Passage of Title. All right, title and interest in or to any material included in the contract shall remain in the State until it has been paid for; provided, however, that the right, title and interest in or to any material that has been paid for but not removed from the sale area by the buyer within the period of the contract or any extension thereof as provided for in this contract shall vest in the seller.

14. Expiration and Extension. This contract expires on the date stated at the top of the contract unless an extension is granted by the seller in accordance with 11 AAC 71.210 (material sale regulations).

15. Warranties. This sale is made without any warranties, express or implied, as to quantity, quality, merchantability, profitability, or fitness for a particular use, of the material to be extracted from the area under contract.

16. Valid Existing Rights. This contract is entered into and made subject to all valid existing rights, including easements, rights-of-way, reservations, or other interests in land, in existence on the date the contract is entered into.

17. Notices. All notices and other writings required or authorized under this contract must be made by certified mail, postage prepaid, to the parties at the following address:

To the Seller: Alaska Department of Natural Resources

Division of Mining, Land and Water 3700 Airport Way Fairbanks, Alaska 99709-4699

To the Buyer: Alaska Department of Transportation and Public Facilities 2301 Peger Road Fairbanks, Alaska 99709

18. Integration and Modification. This contract, including all laws and documents that by reference are incorporated in it or made a part of it, contains the entire agreement between the parties. This contract may not be modified or amended except by a document signed by both parties to this contract. Any amendment or modification that is not in writing, signed by both parties, and notarized is of no legal effect.

19. Severability of Clauses of Sale Contract. If any provision of this contract is adjudged to be invalid, that judgment does not affect the validity of any other provision of this contract, nor does it constitute any cause of action in favor of either party as against the other.

20. Construction. Words in the singular number include the plural, and words in the plural number include the singular.

21. Headings. The headings of the numbered paragraphs in this contract shall not be considered in construing any provision of this contract.

22. "Extracted," "Extraction". In this contract, use of the terms "extracted" and "extraction" encompasses the severance or removal, as well as extraction, by the buyer of any materials covered by this contract.

23. Waiver. No agent, representative or employee of the seller has authority to waive any provision of this contract unless expressly authorized to do so in writing by the director of the DMLW.

DOT&PF Mining and Reclamation Guidelines May 2015

MS 65-9-099-2 1 of 4

State of Alaska Department of Transportation & Public Facilities

Mining and Reclamation Guidelines

Material Site 65-9-099-2 Dalton Highway MP 390

These guidelines are subject to the Alaska Department of Natural Resources (DNR)

Material Sale Contract, ADL 419959, and stipulations contained therein. For each project, the user or contractor shall submit a Project Mining and Reclamation Plan to

DNR for approval, subject to DOT&PF review, prior to any mining activities.

Legal Description

T6N, R13E, UM, Section 12: that portion lying east of the Dalton Hwy R/W and west of the TAPS R/W. The site is approximately 427.1 acres.

General Information

This site lies east of the Dalton Highway and west of TAPS, near MP 390. Gated access road 133-APL/AMS-3 leads to the site. The material site lies on vegetated uplands. There is one developed, flooded pit within the site (Alyeska OMS 133-2A). Activities shall be coordinated with Alyeska before work begins.

DOT&PF conducted exploration of the site in 2001 and 2012. Silty overburden varied across the site, ranging from 3 to 9 feet deep. Target material consists of sand and gravel with silt and cobbles. Drill holes up to 30 feet deep did not intercept bedrock at this site.

Permafrost (well-bonded, ice-rich) is generally present. Groundwater may be present where not excluded by frozen ground. Additional site information is available at the

DOT&PF Materials office in Fairbanks.

Development Plan

Mining will be conducted on a project basis with cell size based on project needs. Cells shown in the attached figure are approximate locations for planning purposes. Establish a cell for stockpiling and staging adjacent to the access road. Cells should be mined to a target depth of 30 feet feet to minimize the overall disturbed footprint. During active mining, isolate the target cell from surface drainage through use of diversion channels and/or berms. Dewatering may be required. Any new pit will likely fill with water, creating a pond once mining is complete.

Reclamation will be completed as part of each project. Re-establish the overall drainage pattern. Flattening overburden berms by either re-spreading on disturbed areas, removing for off-site use or placing in depleted ponds. Also, State agencies have requested the creation of littoral zones for fish habitat. The goal is for 20% of the final pond surface area to be 1-3 feet deep. Littoral zones should generally be located at perimeter slopes or by excavating unmined strips between depleted cells. At the end of each project, the

(gated) access road and a work pad should be stabilized for future site use.

MS 65-9-099-2 2 of 4

Buffers

Maintain a 200-foot-wide buffer along the TAPS right-of-way. Maintain a 100-foot-wide buffer on the highway right-of-way, the access road (from centerline) and the north and south perimeters. Manage activities to eliminate disturbance within buffers. Do not alter drainage patterns in a way that would endanger the pipeline, roads or buffers. Do not locate mining and overburden storage areas, work pads, stockpile locations or other developments within buffers. The exception is to create access to the mining area.

Mining Guidelines

The Project Mining and Reclamation Plan will adhere to the following guidelines.

1. The contractor or user shall locate the material site boundaries to verify work areas are contained within the site.

2. Locate and clearly mark buffer lines on the ground in work areas. Do not disturb, clear or place any material in buffers.

3. If blasting is considered, all appropriate and applicable regulations shall be followed and parties notified.

4. The access road 133-APL shall not be blocked during the project.

5. If possible, stockpile overburden separately from vegetation/organics for reclamation purposes or use off-site. Do not place overburden in future mining areas.

6. As appropriate, isolate the mining area from surface drainage using berms or diversion ditches. After mining is completed, re-establish drainage as part of reclamation.

7. Dewatering may be necessary to keep the excavation dry during mining.

Previously-mined depleted cells may be utilized for this if permits allow.

8. Mine down a target depth of 30 feet.

9. Final slopes shall be 5H:1V above the (final) water line and 1H:1V or flatter below water except for slopes that border the highway, 133-APL or TAPS, these shall be

3H:1V or flatter.

10. Create littoral zones along pit perimeter slopes or by excavating unmined strips between depleted cells. Overburden may be place in depleted ponds for the purpose.

11. Flatten or dispose of berms constructed during mining before demobilizing from the site. Disposal off-site or in depleted cells is acceptable.

12. After each use, remove all equipment and man-made debris from the site. No construction waste may be placed, stored, or abandoned in the site.

13. All mining and stockpiling activities shall be in accordance with applicable

Construction General Permits and Storm Water Pollution Prevention Plans.

MS 65-9-099-2 3 of 4

Reclamation Objectives and Guidelines

Reclamation has several objectives:

1. To restore drainage through the site and stabilize slopes to protect infrastructure.

2. To create littoral zones for fish habitat.

3. To prevent/minimize erosion and sediment transport.

4. To leave the site in a safe condition that does not endanger people or wildlife.

5. Not to preclude or unduly hinder future development of un-mined areas.

Reclamation activities will follow these general guidelines:

1. Final slopes shall be 5H:1V above the (final) water line and 1H:1V or flatter below water except for slopes that border infrastructure, these shall be 3H:1V of flatter.

2. Re-establish proper drainage through the site to protect infrastructure.

3. Grade surface to match surrounding terrain. Berms and excess overburden material may be re-spread on disturbed areas, removed for off-site use (with DNR permission) or place into depleted ponds to create littoral zones.

4. For additional guidance refer to relevant sections of the Alaska Department of Fish and Game Technical Report 93-9, North Slope Gravel Pit Performance Guidelines.

Project Mining and Reclamation Plan

Prior to use of the site for any project, the contractor or user shall submit a Project

Mining and Reclamation Plan, in accordance with A.S. 27.19 and 11 AAC 97 to DNR for for approval, subject to DOT&PF review. The Plan describes the proposed plan of operation and shall be in compliance with guidelines listed here. Upon approval, the Plan will be followed by the contractor or user and if applicable, the DOT&PF Project

Engineer. The plan should include the following:

The sketch map shall include:

1. Site boundaries, access road, drainage structures, diversion ditches

2. Proposed working limits, to be marked on the ground

3. Excavation location, stockpile and staging areas

4. Dewatering and discharge areas

5. Scale of drawing, north arrow, and specific dimensions as appropriate

The narrative shall include:

1. Methods of operation, equipment to be used

2. Length and times of operation

3. Air and water pollution control measures

4. Reclamation measures

Supplements and amendments

Supplements and amendments to an approved mining and reclamation plan may be initiated by the contractor, user or the DOT&PF Project Engineer, when conditions

MS 65-9-099-2 4 of 4 warrant such action. Supplements and amendments must be mutually agreed upon and proper approval obtained prior to commencement of work of a changed nature.

1. Minor changes are those that affect details of the operation, but remain in compliance with the development guidelines. These changes can be authorized by the DOT&PF Project Engineer.

2. Major changes are those which cause the final outcome of the site to be significantly different from the approved mining and reclamation plan or are not in compliance with the development guidelines. These require approval by DNR and the DOT&PF Project Engineer.

P.O Box 196660 ANCHORAGE, ALASKA 99519-6660 TELEPHONE (907) 787-8700

September 30, 2015 LETTER OF NON-OBJECTION Alyeska Letter No. 33721

Alaska Department of Transportation and Public Facilities 2301 Peger Road, MS 2553 Fairbanks, Alaska 99709-5399

Attn.: Mr. Kahlil Wilson Tel: (907)451-5425 Email: Kahlil.Wilson@alaska.gov

RE: Access to/across these Trans-Alaska Pipeline System (“TAPS”) Facilities;

Material Site No.

(Cubic Yards)

Acres HWY

MP

TAPS Xing Milepost

Access Road ID (non–Xing MP)

65-9-096-2 (500,000)

288 365 129 APL/AMS-1

(51)

65-9-038-2 (1,500,000)

504 366 48 129 APL/AMS-2

65-9-040-2 (700,000)

523…