No Moss 3 Landfill Online Library Virginia Energy Russell County Reclamation LLC Reclaim - Application FINAL

Reclaim - Application FINAL

Document Date: Invalid date Document: Reclaim_-_Application_FINAL.pdf

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Name:  “Project  Reclaim”,  (Russell  County  Reclamation,  LLC)   Municipality:  Russell  County,  Virginia     County:  Russell  County,  Virginia   Location:  2  miles  North,  Northwest  of  the  Town  of  Cleveland,  VA,

1,700  acres  +/-­‐,  bordered  on  south  and  east  by  Dumps  Creek  and  west  by

Cheney  Creek,  Lake  Bonaventure  is  also  contiguous  to  this  coal  site.  The

Norfolk  Southern  rail  line  intersects  the  property.

Primary  Project  Partners:   Russell  County  Reclamation,  LLC  (RCR,  LLC),  the  Russell  County  Industrial  Development   Authority  (IDA),  through  the  utilization  of  a  Public-­‐Private  Partnership  including  other  entities   yet  to  be  disclosed;  public  and  private.

Project  Description:   The  2017  AML  Pilot  Program  will  provide  critical  financial  incentives  to  combine  the   reclamation  of  10  AML  Features  known  to  the  Virginia  Department  of  Mines  Minerals  and   Energy  (DMME),  while  conducting  a  large-­‐scale  reclamation  and  repurposing  of  lands  adjacent   known  as  the  Moss  3  Coal  Preparation  Plant.

The  10  AML  Features  (36  58’  25”    82  11’  50”,  Map  Attached)  known  to  DMME  that  are  adjacent   to  this  land  include  decades-­‐old  open  “punch  mine”  portals  adjacent  to  Wilder  Hollow  Road.   These  portals  will  likely  require  closure  by  means  of  gates  that  are  necessary  for  public  safety.   Where  water  is  present,  if  any,  additional  sealing  may  be  required  by  DMME.  Where  soil   erosion  is  present,  vegetation  will  be  reintroduced  to  the  feature.

Each  of  the  following  2  points  illustrate  how  RCR,  LLC  in  partnership  with  the  Russell  County  IDA   aligns  this  application  and  related  scopes  of  work  to  support  OSM’s  published  Grant  guidance   for  a  non-­‐traditional  approach  to  reclamation  while  creating  a  nexus  with  economic   development  criteria.  Only  with  a  2017  AML  Pilot  Grant  can  the  proposed  scopes  of  work  for   reclamation  and  creation  of  economic  development  opportunities  be  fully  achieved  for  a  higher   and  better  use.

As  land  adjacent  to  these  AML  Features  known  to  DMME,  RCR,  LLC  will:

  1. Repurpose  one  of  North  America’s  oldest  and  largest  Preparation  Plants  that  has  been   in  service  since  the  1950’s  into  a  160  Acre  Coalfields  Regional  Industrial  Site    with   supporting  infrastructure.  This  new  industrial  site  would  be  the  only  160-­‐acre  site  with   existing  rail  siding  in  the  coalfields  and  only  one  of  four  in  all  of  southern  Virginia-­‐which   makes  it  highly  competitive  in  the  industrial  site  selection  criteria  (Map  Attached).

  1. RCR,  LLC  will  also  apply  for  assistance  from  this  grant  to  remove  a  pre-­‐1977  gob  pile  of   approximately  500,000  cubic  yards  directly  adjacent  to  the  proposed  industrial  site  and   the  impaired  stream  of  Dumps  Creek.  Dumps  Creek  is  only  1.5  miles  upstream  of  the   biologically-­‐diverse  Clinch  River.  It  could  also  return  up  to  2,000  linear  feet  for  stream   bank  mitigation  to  make  further  improvements  to  water  quality  (Map  Attached).

Name: “Project Reclaim’, (Russell County Reclamation, LLC)

ality: Russell County, Virginia

County: Russell County, Virginia

Location: 2 miles North, Northwest of the Town of Cleveland, VA, 1,700 acres +/-, bordered on south and east by Dumps Creek and west by Cheney Creek, Lake Bonaventure is also contiguous to this coal site. The Norfolk Southern rail line intersects the property.

Primary Project Partners: Russell County Reclamation, LLC (RCR, LLC), the Russell County Industrial Development Authority (IDA), through the utilization of a Public-Private Partnership including other entities yet to be disclosed; public and private.

Project Descriptio The 2017 AML Pilot Program will provide critical financial incentives to combine the reclamation of 10 AML Features known to the Virginia Department of Mines Minerals and Energy (DMME), while conducting a large-scale reclamation and repurposing of lands adjacent known as the Moss 3 Coal Preparation Plant.

The 10 AML Features (36 58’ 25” 82 11’ 50”, Map Attached) known to DMME that are adjacent to this land include decades-old open “punch mine” portals adjacent to Wilder Hollow Road. These portals will likely require closure by means of gates that are necessary for public safety. Where water is present, if any, additional sealing may be required by DMME. Where soil erosion is present, vegetation will be reintroduced to the feature.

Each of the following 2 points illustrate how RCR, LLC in partnership with the Russell County IDA aligns this application and related scopes of work to support OSM’s published Grant guidance for a non-traditional approach to reclamation while creating a nexus with economic development criteria. Only with a 2017 AML Pilot Grant can the proposed scopes of work for reclamation and creation of economic development opportunities be fully achieved for a higher and better use.

As land adjacent to these AML Features known to DMME, RCR, LLC will:

1, Repurpose one of North America’s oldest and largest Preparation Plants that has been in service since the 1950’s into a 160 Acre Coalfields Regional Industrial Site with supporting infrastructure. This new industrial site would be the only 160-acre site with existing rail siding in the coalfields and only one of four in all of southern Virginia-which makes it highly competitive in the industrial site selection criteria (Map Attached).

  1. RCR, LLC will also apply for assistance from this grant to remove a pre-1977 gob pile of approximately 500,000 cubic yards directly adjacent to the proposed industrial site and the impaired stream of Dumps Creek. Dumps Creek is only 1.5 miles upstream of the biologically-diverse Clinch River. It could also return up to 2,000 linear feet for stream bank mitigation to make further improvements to water quality (Map Attached).

Note:  Should  the  application  process  and/or  limitations  on  dollar  amounts  available  to   be  granted  be  limited,  any  of  the  above  could  be  modified  to  meet  DMME  grant  award   amounts.  Each  of  the  2  grant  categories  scope  of  work  can  stand  alone  or  could  be   accomplished  on  a  parallel  time  line.

Project  Description  Detail  and  Scope  of  Work  for  each  of  the  2  segments  described  above:

  1. Create  a  160  Acre  Industrial  Site  with  infrastructure:  RCR,  LLC  will  remove  the  existing   Preparation  Plant,  related  buildings,  and  immediate  supporting  physical  plant.   Approximately  50  acres  of  the  prospective  160  acre  site  will  have  earthwork  and   vegetation  at  a  “rough  grade”  suitable  for  hosting  economic  development  prospects  in   their  due  diligence  of  the  site  selection  process.

Infrastructure  that  will  remain  and  be  repurposed  to  support  the  new  industrial  site  will   include,  but  is  not  limited  to,  close  proximity  to  the  following:  25,000  linear  feet  +/-­‐  of   existing  rail  siding  (the  only  such  160-­‐acre  industrial  site  available  in  the  coalfields  of   southwest  Virginia);  a  69  Kv  electric  distribution  line  and  3  Phase  power;  electric  sub-­‐ stations;  over  1.75  miles  of  gravel  road;  4  access  points  with  2  bridges  over  Dumps   Creek;  a  rail  rotary-­‐dump;  redundant  sources  of  water  supply;  and  natural  gas.

All  of  this  repurposed  infrastructure  and  related  costs  incurred  by  RCR,  LLC  could  also  be   added  and  contributed  as  an  “in-­‐kind”  match  towards  the  scopes  of  work  detailed   within  this  application  if  need  be.

Through  the  utilization  of  a  Public-­‐Private  partnership  and  on  behalf  of  the  Russell   County  IDA,  RCR,  LLC  would  request  $1.75m    from  the  2017  AML  Pilot  Grant  for  the   repurposing  costs  related  to  the  industrial  site’s  initial  development  and  acquisition  of   the  160-­‐acre  tract.

This  Phase  of  Project  Reclaim  is  ready  for  work  to  commence  within  30  days  of  the   reclamation  permits  being  issued.  This  site  is  shovel  ready  and  work  can  be  completed   within  12-­‐18  months!  Economic  Developers  could  immediately  begin  marketing  the   new  industrial  site  to  prospects  upon  an  award  of  the  2017  AML  Pilot  Grant!

  1. Remove  a  pre-­‐1977  gob  pile  of  500,000  cubic  yards  on  approximately  32  acres  resting   directly  adjacent  to  the  impaired  stream,  Dumps  Creek,  and  returning  approximately   2,000  linear  feet  to  stream  bank  for  stream  bank  mitigation.

RCR,  LLC  could  reclaim  this  pre-­‐1977  32-­‐acre  gob  pile  with  two  very  different   approaches  and  post  reclamation  outcomes.

Note: Should the application process and/or limitations on dollar amounts available to be granted be limited, any of the above could be modified to meet DMME grant award amounts. Each of the 2 grant categories scope of work can stand alone or could be accomplished on a parallel time line.

Project Description Detail and Scope of Work for each of the 2 segments described above:

  1. Create a 160 Acre Industrial Site with infrastructure: RCR, LLC will remove the existing Preparation Plant, related buildings, and immediate supporting physical plant. Approximately 50 acres of the prospective 160 acre site will have earthwork and vegetation at a “rough grade” suitable for hosting economic development prospects in their due diligence of the site selection process.

Infrastructure that will remain and be repurposed to support the new industrial site will include, but is not limited to, close proximity to the following: 25,000 linear feet +/- of existing rail siding (the only such 160-acre industrial site available in the coalfields of southwest Virginia); a 69 Kv electric distribution line and 3 Phase power; electric sub- stations; over 1.75 miles of gravel road; 4 access points with 2 bridges over Dumps Creek; a rail rotary-dump; redundant sources of water supply; and natural gas.

All of this repurposed infrastructure and related costs incurred by RCR, LLC could also be added and contributed as an “in-kind” match towards the scopes of work detailed within this application if need be.

Through the utilization of a Public-Private partnership and on behalf of the Russell County IDA, RCR, LLC would request $1.75m from the 2017 AML Pilot Grant for the repurposing costs related to the industrial site’s initial development and acquisition of the 160-acre tract.

This Phase of Project Reclaim is ready for work to commence within 30 days of the reclamation permits being issued. This site is shovel ready and work can be completed within 12-18 months! Economic Developers could immediately begin marketing the new industrial site to prospects upon an award of the 2017 AML Pilot Grant!

  1. Remove a pre-1977 gob pile of 500,000 cubic yards on approximately 32 acres resting directly adjacent to the impaired stream, Dumps Creek, and returning approximately 2,000 linear feet to stream bank for stream bank mitigation.

RCR, LLC could reclaim this pre-1977 32-acre gob pile with two very different approaches and post reclamation outcomes.

Option  A:  The  32  acres  and  underlying  500,000  cubic  yards  of  gob  could  be  “capped”   with  material,  leaving  the  decades-­‐old  gob  in  place  and  remaining  along  side  the  banks   of  Dumps  Creek  with  no  restoration  of  stream  bank.  The  estimated  cost  to  cap  the  gob   in  place  with  no  stream  bank  restoration  is  approximately  $1m  (500,000  cubic  yards  x   $2.00  =  $1m).

Option  B:  The  32  acres  and  underlying  500,000  cubic  yards  of  gob  could  be  removed,   transported  to  other  location(s)  away  from  Dumps  Creek.  Then,  the  Project  could  return   approximately  2,000  linear  feet  to  stream  bank  improving  the  water  quality  of  Dumps   Creek  and  the  Clinch  River.  The  estimated  cost  for  Option  B  is  approximately  $2.25m   (500,000  x  $4.50  =  $2.25m).

While  the  cost  of  reclaiming  Option  B  is  approximately  $1.25m  more  than  Option  A,  a   2017  AML  Grant  award  in  the  amount  of  $1.25m  would  be  required  to  support  the   preferred  outcomes.

Removal  of  500,000  cubic  yards  of  gob  from  32  acres  directly  adjacent  to  a  160-­‐acre   industrial  site  is  a  must  if  the  industrial  site  is  to  be  considered  an  acceptable  site ��in  the   highly  competitive  site  selection  process.  Furthermore,  the  industrial  site  selection   process  always  includes  an  analysis  and  ranking  of  impacts  to  the  water  qualities   nearby.  Removing  the  gob  pile  places  the  industrial  site  in  a  much  more  competitive  and   desirable  posture.

RCR,  LLC  would  request  $1.25m  (additional  allowance  of  500,000  cubic  yards  x  $2.50  =   $1,250,000.00)  from  the  2017  AML  Pilot  Grant  to  support  Option  B’s  preferred  method   and  outcomes.

This  Phase  of  Project  Reclaim  can  be  ready  for  work  to  commence  within  60  days  of   reclamation  permits  being  issued.  Depending  upon  weather  conditions,  this  phase  of   reclamation  may  necessitate  a  42  to  60-­‐month  time  period  to  fully  complete.

The  last  note  for  this  Phase  of  reclamation  and  scope  of  work  is  how  DMME  may   consider  this  pre-­‐1977  gob  pile  that,  according  to  DMME’s  own  records,  has  not  been   disturbed  since  the  post-­‐1977  SMCRA.  There  is  a  regulatory  question  for  RCR,  LLC  and   DMME  to  resolve  as  to  how  this  pre-­‐1977  gob  pile  may  be  considered  as  a  “no-­‐cost”   reclamation  relative  to  the  reclamation  permit(s).  This  determination  has  only  marginal   implications  to  the  proposed  scope  of  work  and  no  bearing  as  to  this  application,  but  it   should  be  mentioned  herein.

Proposed  AML  Pilot  Funding  Amount:   10  AML  Feature  Reclamation         $200k  +/-­‐,  estimate   160  Acre  Industrial  Site       $1.75m     Removal  of  Gob  Pile  and  Return  to  Stream   $1.25m   TOTAL:             $3.2m

Option A: The 32 acres and underlying 500,000 cubic yards of gob could be “capped” with material, leaving the decades-old gob in place and remaining along side the banks of Dumps Creek with no restoration of stream bank. The estimated cost to cap the gob in place with no stream bank restoration is approximately $1m (500,000 cubic yards x $2.00 = $1m).

Option B: The 32 acres and underlying 500,000 cubic yards of gob could be removed, transported to other location(s) away from Dumps Creek. Then, the Project could return approximately 2,000 linear feet to stream bank improving the water quality of Dumps Creek and the Clinch River. The estimated cost for Option B is approximately $2.25m_ (500,000 x $4.50 = $2.25m).

While the cost of reclaiming Option B is approximately $1.25m more than Option A, a 2017 AML Grant award in the amount of $1.25m would be required to support the preferred outcomes.

Removal of 500,000 cubic yards of gob from 32 acres directly adjacent to a 160-acre industrial site is a must if the industrial site is to be considered an acceptable site in the highly competitive site selection process. Furthermore, the industrial site selection process always includes an analysis and ranking of impacts to the water qualities nearby. Removing the gob pile places the industrial site in a much more competitive and desirable posture.

RCR, LLC would request $1.25m (additional allowance of 500,000 cubic yards x $2.5 $1,250,000.00) from the 2017 AML Pilot Grant to support Option B’s preferred method and outcomes.

This Phase of Project Reclaim can be ready for work to commence within 60 days of reclamation permits being issued. Depending upon weather conditions, this phase of reclamation may necessitate a 42 to 60-month time period to fully complete.

The last note for this Phase of reclamation and scope of work is how DMME may consider this pre-1977 gob pile that, according to DMME’s own records, has not been disturbed since the post-1977 SMCRA. There is a regulatory question for RCR, LLC and DMME to resolve as to how this pre-1977 gob pile may be considered as a “no-cost” reclamation relative to the reclamation permit(s). This determination has only marginal implications to the proposed scope of work and no bearing as to this application, but it should be mentioned herein.

Proposed AML Pilot Funding Amount: 10 AML Feature Reclamation $200k +/-, estimate 160 Acre Industrial Site $1.75m Removal of Gob Pile and Return to Stream $1.25m TOTAL: $3.2m

Note:  It  is  the  intent  of  RCR,  LLC  to  partner  with  public  entities  who  are  engaged  in   economic  development  activities,  primarily  the  Russell  County  IDA,  to  convey  any   property  interests  to  them  upon  completion  of  Reclamation  and  Bond  Release.     RCR,  LLC  has  been  actively  recruiting  new  targeted  businesses  to  this  site.  RCR,  LLC  has   also  been  in  protracted  discussions  with  outdoor  recreation  and  conservation  entities   about  future  development  of  this  Project.

Project  Reclaim  aligns  most  closely  with  OSM’s  “Category  B  Projects”  (Reclamation  for  potential   Development).  This  reclaimed  and  repurposed  industrial  site  would  meet  the  requirements  of  3   known  current  potential  economic  development  prospects.  Regardless  of  whether  Project   Reclaim  more  closely  aligns  with  OSM’s  Categories  A  or  B,  (now  or  in  the  future)  this  proposed   new  160-­‐acre  industrial  site  would  open  up  the  coalfields  to  be  marketed  to  a  new  level  of   prospective  businesses  never  within  reach  before.  Also,  planning  for  a  future  destination  of   outdoor  recreation  to  southwest  Virginia’s  Trail  network  is  consistent  with  the  strategic  plans   adopted  by  many  public  entities.

Eligible  for  Title  IV  Funds?   At  present,  no.  No  traditional  AML  funds  are  being  requested  with  this  application.  Should  a   determination  from  DMME  that  the  pre-­‐1977  gob  pile  has  not  been  disturbed  since  post-­‐1977   SMCRA,  then  perhaps  a  portion  of  the  scope  of  work  related  to  removal  of  the  gob  pile  may   become  eligible  for  future  Title  IV  regulations.  This  determination  should  have  no  bearing  on   this  application.

Is  there  any  ongoing  operation  and  maintenance  (O&M)  funding  requirement?   If  any  O&M  expense  remains  after  the  scope  of  work  is  completed,  it  is  anticipated  that  the   partnering  economic  development  organization(s)  who  will  have  control  of  the  site  will  operate   post-­‐reclamation.

Other  Project  Funding  Source(s),  (Amounts  and  Status):   RCR,  LLC  can  provide  an  in-­‐kind  match  of  adjacent  land  (1,700  acres  +/-­‐)  for  any  portion  of   grants  awarded  for  these  2  Phases.  The  combined  values  of  contributing  these  in-­‐kind  matches   of  land  and  repurposed  infrastructure  will  meet  the  match  requirement  of  the  grant  request   amount  of  $3.2m  if  the  entire  grant  is  awarded.

The  values  of  the  industrial  site’s  160  acres,    repurposed  physical  plant  and  related   infrastructure,  and  other  Post  Mine  Use  repurposing  from  the  32-­‐acre  gob  pile  are  the  basis  for   valuation  of  this  in-­‐kind  match  (described  in  detail  below).

MATCH:   OSM’s  published  application  guidance  strongly  encourages  match  for  the  2017  AML  Pilot  Grant.   Within  published  Federal  Match  Guidelines,  the  widely  recognized  Appalachian  Regional   Commission  (ARC)  “County  Economic  Status  and  Match  Rates,  FY  2017”;  cites  Russell  County,

Note: It is the intent of RCR, LLC to partner with public entities who are engaged in economic development activities, primarily the Russell County IDA, to convey any property interests to them upon completion of Reclamation and Bond Release.

RCR, LLC has been actively recruiting new targeted businesses to this site. RCR, LLC has also been in protracted discussions with outdoor recreation and conservation entities about future development of this Project.

Project Reclaim aligns most closely with OSM’s “Category B Projects” (Reclamation for potential Development). This reclaimed and repurposed industrial site would meet the requirements of 3 known current potential economic development prospects. Regardless of whether Project Reclaim more closely aligns with OSM’s Categories A or B, (now or in the future) this proposed new 160-acre industrial site would open up the coalfields to be marketed to a new level of prospective businesses never within reach before. Also, planning for a future destination of outdoor recreation to southwest Virginia’s Trail network is consistent with the strategic plans adopted by many public entities.

Eligible for Title IV Funds? At present, no. No traditional AML funds are being requested with this application. Should a determination from DMME that the pre-1977 gob pile has not been disturbed since post-1977 SMCRA, then perhaps a portion of the scope of work related to removal of the gob pile may become eligible for future Title IV regulations. This determination should have no bearing on this application.

Is there any ongoing operation and maintenance (O&M) funding requirement?

If any O&M expense remains after the scope of work is completed, it is anticipated that the partnering economic development organization(s) who will have control of the site will operate post-reclamation.

Other Project Funding Source(s), (Amounts and Status): RCR, LLC can provide an in-kind match of adjacent land (1,700 acres +/-) for any portion of grants awarded for these 2 Phases. The combined values of contributing these in-kind matches of land and repurposed infrastructure will meet the match requirement of the grant request amount of $3.2m if the entire grant is awarded.

The values of the industrial site’s 160 acres, repurposed physical plant and related infrastructure, and other Post Mine Use repurposing from the 32-acre gob pile are the basis for valuation of this in-kind match (described in detail below).

MATCH:

OSM’s published application guidance strongly encourages match for the 2017 AML Pilot Grant. Within published Federal Match Guidelines, the widely recognized Appalachian Regional Commission (ARC) “County Economic Status and Match Rates, FY 2017”; cites Russell County,

Virginia  as  a  locality  that  is  designated  as  “At-­‐Risk”.  Russell  County’s  federal  designation  as  “At-­‐ Risk”  creates  the  need  for  a  30%  match  from  applicants.

The  total  amount  of  grant  awarded  and  the  amount  of  grant  awarded  for  each  proposed   Phased  scope  of  work  will  determine  what  level(s)  of  match  may  be  contributed  to  the  project.

RCR,  LLC  is  making  a  firm  commitment  to  match  this  grant  with  the  necessary  amount  of  land  as   an  in-­‐kind  contribution.

The  100  acre  industrial  site’s  match  will  be  enhanced  by  the  contribution  of  an  additional  47   acres  of  land  directly  adjacent  to  the  proposed  industrial  site  with  existing  access  to  the  rail   siding.  This  acreage  is  valued  at  $16,500  per  acre  totaling  $775,500  of  potential  contribution  as   match.

NOTE:  The  basis  of  the  industrial  site  land  valuation  of  $16,500  per  acre  is  derived  from  the     Appraisal  Report  by  Wampler  Appraisal  Service,  Inc.,  dated  8-­‐29-­‐17  (copy  provided).

Furthermore,  there  are  approximately  3  acres  of  flat  road  frontage  along  Gravel  Lick  Road  that   would  also  be  contributed  to  further  enhance  the  build-­‐out  of  the  industrial  site.  The  value  of   these  3  acres  is  $25,000  per  acre  totaling  $75,000  of  potential  contribution  as  match.

The  remaining  road  frontage  property  adjoining  the  tract  has  approximately  10  acres.  The  value   of  these  10  acres  to  be  contributed  to  further  support  the  industrial  park  is  $5,000  per  acre   totaling  $50,000  of  potential  contribution  as  match.

The  total  value  of  the  additional  land  proposed  to  be  contributed  as  match  for  the  industrial   site  is  $900,000.  The  addition  of  60  total  acres  as  potential  match  would  enable  the  Russell   County  IDA  to  have  site  control  totaling  over  160  acres  of  industrial  property  at  rough  grade   that  are  flat  and  have  access  to  rail.  This  combined  industrial  site  of  160  acres  would  soon  be   ready  for  business  prospects  to  consider  in  their  site  selection  process.  Marketing  the  new   industrial  site  to  prospective  industry  could  commence  very  soon.

The  Gob  Pile’s  match  is  comprised  of  the  32  acres  holding  the  gob  and  28  adjoining  acres  that   must  be  used  to  work  in  and  around  the  reclamation  of  this  area  for  a  total  of  60  acres.

The  32  acres  holding  the  gob  is  valued  at  $2,750  per  acre  totaling  $88,000.

The  28  adjoining  acres  are  valued  at  $16,500  per  acre  totaling  $462,000.

The  addition  of  these  60  acres  total  value  is  $550,000  proposed  to  be  contributed  as  match.

Each  of  the  2  Phases  dollar  value  of  proposed  contribution  of  acreage  exceeds  the  30%  match   requirements  for  the  requested  grant  amounts.

Virginia as a locality that is designated as “At-Risk”. Russell County’s federal designation as “At- Risk” creates the need for a 30% match from applicants.

The total amount of grant awarded and the amount of grant awarded for each proposed Phased scope of work will determine what level(s) of match may be contributed to the project.

RCR, LLC is making a firm commitment to match this grant with the necessary amount of land as. an in-kind contribution.

The 100 acre industrial site’s match will be enhanced by the contribution of an additional 47 acres of land directly adjacent to the proposed industrial site with existing access to the rail siding. This acreage is valued at $16,500 per acre totaling $775,500 of potential contribution as match.

NOTE: The basis of the industrial site land valuation of $16,500 per acre is derived from the Appraisal Report by Wampler Appraisal Service, Inc., dated 8-29-17 (copy provided).

Furthermore, there are approximately 3 acres of flat road frontage along Gravel Lick Road that would also be contributed to further enhance the build-out of the industrial site. The value of these 3 acres is $25,000 per acre totaling $75,000 of potential contribution as match

The remaining road frontage property adjoining the tract has approximately 10 acres. The value of these 10 acres to be contributed to further support the industrial park is $5,000 per acre totaling $50,000 of potential contribution as match.

The total value of the additional land proposed to be contributed as match for the industrial site is $900,000. The addition of 60 total acres as potential match would enable the Russell County IDA to have site control totaling over 160 acres of industrial property at rough grade that are flat and have access to rail. This combined industrial site of 160 acres would soon be ready for business prospects to consider in their site selection process. Marketing the new industrial site to prospective industry could commence very soon.

The Gob Pile’s match is comprised of the 32 acres holding the gob and 28 adjoining acres that must be used to work in and around the reclamation of this area for a total of 60 acres.

The 32 acres holding the gob is valued at $2,750 per acre totaling $88,000.

The 28 adjoining acres are valued at $16,500 per acre totaling $462,000.

The addition of these 60 acres total value is $550,000 proposed to be contributed as match.

Each of the 2 Phases dollar value of proposed contribution of acreage exceeds the 30% match requirements for the requested grant amounts.

Other  granting  agencies  where  alignment  for  the  proposed  scope  of  work  exists  include,  but  are   not  limited  to,  the  US  Department  of  Commerce  Economic  Development  Administration,  the   Appalachian  Regional  Commission,  the  US  Department  of  Agriculture,  federally  funded  New   Market  Tax  Credits,  the  Commonwealth  of  Virginia’s  Housing  and  Community  Development,   Virginia  Tobacco  Commission,  the  Virginia  Coalfield  Economic  Development  Authority,  Virginia   Department  of  Rail  Public  Transportation  for  rail  upgrades,  and  local  governments.  Applications   to  these  Agencies  will  be  submitted  to  enhance  the  development  of  this  Project  and  provide   additional  leverage/match  when  their  grant  cycles  open.

Once  the  2017  AML  Pilot  Program  grant  wards  have  been  completed,  it  is  the  intent  of  RCR,  LLC   and  the  Russell  County  IDA  to  jointly  develop  the  industrial  site  with  a  shell  building  and   upgrades  to  infrastructure  such  as  additional  rail  siding,  roads  water/sewer  capacity,  etc.  It  is   anticipated  that  this  next  phase  of  development  could  commence  within  18  months  of  this   application.

Additionally,  regional  banks  have  expressed  an  initial  willingness  to  consider  participating  with   loans  and  loan  guarantees  to  facilitate  investments  of  private  capital  for  specific  industrial   prospects  who  are  considering  this  site  in  the  site  selection  process.

Anticipated  Project  Start  and  Completion  Date:   As  previously  detailed  in  the  Project  Description,  the  2  Phases  of  proposed  work  can  start   within  60  days  of  the  reclamation  permits  being  issued  and  completed  as  soon  as  12-­‐18  months   for  the  industrial  site  and  42-­‐60  months  for  the  removal  of  the  gob  pile.

Current  Project  Status:   As  of  this  application  date,  Option(s),  control  of  sites,  and  prerequisite  permissions  are  pending   with  closings  and  final  regulatory  actions  to  soon  follow  (anticipate  completion  within  60  days   of  application).  Without  the  2017  AML  Pilot  Grant  being  awarded,  this  non-­‐traditional  Pilot   approach  to  reclamation  and  repurposing  will  likely  not  occur  with  these  desired  outcomes  of   higher  and  better  uses;  improvements  to  the  environment,  and  economic  development   opportunities  for  job  creation  with  new  capital  investments.

Are  Project  Designs  available?   Yes,  very  preliminary  cost  estimates  have  been  developed  by  Appalachian  Technical  Services   (ATS)  for  the  proposed  scopes  of  work  for  each  of  the  2  Phases  previously  detailed.  Conceptual   Plans  and  other  supporting  detail  could  be  made  available  during  the  review  of  this  application.

Summary  of  Significant  Project  Issues:   Obtaining  required  approvals  and  permits  from  state  and  federal  agencies  to  reclaim  the  gob   pile  may  prolong  the  anticipated  start  date.  This  is  a  very  technical  issue.  An  interpretation  from   DMME  as  to  the  gob  pile  not  being  disturbed  since  post-­‐1977  and  potentially  being  reclaimed   as  a  “no-­‐cost”  reclamation  activity  must  be  also  be  resolved.  The  timing  of  the  pending  business

Other granting agencies where alignment for the proposed scope of work exists include, but are not limited to, the US Department of Commerce Economic Development Administration, the Appalachian Regional Commission, the US Department of Agriculture, federally funded New Market Tax Credits, the Commonwealth of Virginia’s Housing and Community Development, Virginia Tobacco Commission, the Virginia Coalfield Economic Development Authority, Virginia Department of Rail Public Transportation for rail upgrades, and local governments. Applications to these Agencies will be submitted to enhance the development of this Project and provide additional leverage/match when their grant cycles open.

Once the 2017 AML Pilot Program grant wards have been completed, it is the intent of RCR, LLC and the Russell County IDA to jointly develop the industrial site with a shell building and upgrades to infrastructure such as additional rail siding, roads water/sewer capacity, etc. It is anticipated that this next phase of development could commence within 18 months of this application.

Additionally, regional banks have expressed an initial willingness to consider participating with loans and loan guarantees to facilitate investments of private capital for specific industrial prospects who are considering this site in the site selection process.

Anticipated Project Start and Completion Date: As previously detailed in the Project Description, the 2 Phases of proposed work can start within 60 days of the reclamation permits being issued and completed as soon as 12-18 months for the industrial site and 42-60 months for the removal of the gob pile.

Current Project Status:

As of this application date, Option(s), control of sites, and prerequisite permissions are pending with closings and final regulatory actions to soon follow (anticipate completion within 60 days of application). Without the 2017 AML Pilot Grant being awarded, this non-traditional Pilot approach to reclamation and repurposing will likely not occur with these desired outcomes of higher and better uses; improvements to the environment, and economic development opportunities for job creation with new capital investments.

Are Project Designs available?

Yes, very preliminary cost estimates have been developed by Appalachian Technical Services. (ATS) for the proposed scopes of work for each of the 2 Phases previously detailed. Conceptual Plans and other supporting detail could be made available during the review of this application.

‘Summary of Significant Project Issues:

Obtaining required approvals and permits from state and federal agencies to reclaim the gob pile may prolong the anticipated start date. This is a very technical issue. An interpretation from DIME as to the gob pile not being disturbed since post-1977 and potentially being reclaimed as a “no-cost” reclamation activity must be also be resolved. The timing of the pending business

transaction(s)  and  the  potential  2017  AML  Grant  awards  must  remain  in-­‐sync.  Delay  of  either   could  become  problematic  with  narrow  windows  to  commence  reclamation  for  higher  and   better  uses.

Obtaining  all  of  the  required  permits  for  reclamation  require  certain  periods  of  time  to  obtain.   However,  RCR,  LLC’s  preliminary  briefings  with  DMME  have  declared  RCR,  LLC’s  intent  to  make   permit  application  immediately.

Describe  the  AML  features  being  reclaimed  and/or  nexus  with  AML  lands  and  features   associated  with  the  project:   There  are  10  AML  features  currently  identified  in  DMME’s  AML  database  that  are  adjacent  to   this  Project  (map  with  DMME  known  locations  attached).

There  are  10  known  AML  features  nearby  on  Dumps  Creek:  8  portals  and  2  slumps.

The  pre-­‐1977  500,000  cubic  yard  gob  pile  resting  on  32  acres  of  former  stream  bank  must   either  be  a  traditional  reclamation  project  or  be  considered  as  a  “no-­‐cost”  reclamation  project.   DMME  must  make  this  determination.  With  a  DMME  pre-­‐1977  “no-­‐cost”  reclamation   determination,  the  gob  can  be  removed,  transported  to  other  locations,  and  the  32  acres  can   be  returned  to  stream  bank  with  improvements  to  water  quality  to  Dumps  Creek  and  the   nearby  Clinch  River.

In  cooperation  and  consultation  with  DMME,  RCR,  LLC,  with  Appalachian  Technical  Services,  will   determine  the  most  appropriate  reclamation  plans  for  these  specific  AML  features.  Additional   joint  on-­‐site  investigation  by  DMME,  ATS,  and  RCR,  LLC  is  necessary  to  determine  the   appropriate  degrees  of  reclamation  that  may  be  required  for  each  feature.

The  cost  estimates  for  closure  of  each  portal  is  approximately  $10,000.00  (10  portals  x  $10k  =   $100k)  and  $50,000.00  to  rework  the  2  slumps  (2  slumps  x  $50k  =  $100k)  for  a  total  AML   Feature  budget  of  $200k,  estimate.  Again,  joint  on-­‐site  investigation  will  determine  the  scope  of   work  and  a  more  accurate  cost  to  reclaim  these  10  AML  Features.

How  likely  are  the  project  partners  to  complete  any  work  beyond  the  reclamation  project   work?   Build-­‐out  of  the  160-­‐acre  industrial  site  will  continue  beyond  this  initial  phase  of  development   with  industrial  shell  buildings  and  related  infrastructure.

RCR,  LLC  will  continue  to  assist  in  the  recruitment  of  new  industry  to  the  industrial  site  and  to   consider  investments  and  partnering  in  a  joint  ventures  with  the  prospective  businesses.

Creating  additional  steam  bank  mitigation  on  the  property  adjacent  to  Dumps  Creek  where   opportunities  exist  is  a  priority  consideration  for  RCR,  LLC.  However,  the  planning  for  this

transaction(s) and the potential 2017 AML Grant awards must remain in-sync. Delay of either could become problematic with narrow windows to commence reclamation for higher and better uses.

Obtaining all of the required permits for reclamation require certain periods of time to obtain. However, RCR, LLC’s preliminary briefings with DMME have declared RCR, LLC’s intent to make permit application immediately.

Describe the AML features being reclaimed and/or nexus with AML lands and features associated with the project:

There are 10 AML features currently identified in DMME’s AML database that are adjacent to this Project (map with DMME known locations attached).

There are 10 known AML features nearby on Dumps Creek: 8 portals and 2 slumps.

The pre-1977 500,000 cubic yard gob pile resting on 32 acres of former stream bank must either be a traditional reclamation project or be considered as a “no-cost” reclamation project. DMME must make this determination. With a DMME pre-1977 “no-cost” reclamation determination, the gob can be removed, transported to other locations, and the 32 acres can be returned to stream bank with improvements to water quality to Dumps Creek and the nearby Clinch River.

In cooperation and consultation with DMME, RCR, LLC, with Appalachian Technical Services, will determine the most appropriate reclamation plans for these specific AML features. Additional joint on-site investigation by DMME, ATS, and RCR, LLC is necessary to determine the appropriate degrees of reclamation that may be required for each feature.

The cost estimates for closure of each portal is approximately $10,000.00 (10 portals x $10k = $100k) and $50,000.00 to rework the 2 slumps (2 slumps x $50k = $100k) for a total AML Feature budget of $200k, estimate. Again, joint on-site investigation will determine the scope of work and a more accurate cost to reclaim these 10 AML Features.

How likely are the project partners to complete any work beyond the reclamation project work?

Build-out of the 160-acre industrial site will continue beyond thi with industrial shell buildings and related infrastructure.

itial phase of development. RCR, LLC will continue to assist in the recruitment of new industry to the industrial site and to consider investments and partnering in a joint ventures with the prospective businesses.

Creating additional steam bank mitigation on the property adjacent to Dumps Creek where opportunities exist is a priority consideration for RCR, LLC. However, the planning for this

activity  can  prove  to  be  a  protracted  activity  as  reclamation  work  and  permits  must  be  worked   in  cooperation  with  each  other.

RCR,  LLC  will  endeavor  to  introduce  and  sustain  passive  water  treatment,  such  as  “cattails”  and   other  aquatic  plants  beneficial  to  the  long-­‐term  reclamation  efforts  where  possible  to  improve   water  qualities  around  existing  water  sources  as  practical.  Other  areas  on  property  may  also   prove  to  be  able  to  accept  and  sustain  such  aquatic  vegetation.  RCR,  LLC  will  seek  to  engage   institutions  of  higher  education  to  potentially  partner  and  assume  research  and  other  outreach   activities  on  areas  of  the  reclaimed  site.

The  supporting  Russell  County  IDA  Resolution  was  adopted  prior  to  the  submission  of  this   application  and  contemplated  an  additional  3rd  Phase  of  development.  This  phase  would   include  a  significant  development  to  create  outdoor  recreation  and  conservation  of  targeted   acreage  within  the  existing  property  boundaries  for  a  higher  and  better  use  of  these  proposed   Post  Mine  Uses.  RCR,  LLC  fully  supports  this  next  Phase  of  development.

Out  of  respect  for  other  applicants  so  as  not  to  potentially  diminish  the  amounts  for  other   Grantee  awards,  RCR,  LLC  has  decided  to  defer  this  3rd  phase  of  joint-­‐development  with  the   Russell  County  IDA  to  future  grant  cycles  and/or  with  other  funding  agencies.

Both  RCR,  LLC  and  the  Russell  County  IDA  remain  fully  committed  to  the  next  Phase  of  planned     development  to  achieve  a  higher  and  better  use  of  the  reclaimed  lands  through  new  outdoor   recreation  and  conservation  efforts.

The  opportunities  for  future  development  of  outdoor  recreation  and  conservation  are   significant.    Within  the  1,700  acres  of  the  property,  it  is  possible  to  eventually  host  the  addition   of  over  100  miles  of  trail  networks  with  shelters  and  campsites  to  meet  increases  in  public   demand.  It  is  also  worthy  to  note  that  this  property  is  bordered  by  only  one  other  land  owner   who  is  the  owner  of  tens  of  thousands  of  acres  in  southwest  Virginia.  So,  there  are  real   possibilities  of  leverage  and  partnership  beyond  these  initial  Phases  of  development.

The  planning  for  outdoor  recreation  and  conservation  must  occur  at  the  beginning  of  this   reclamation  project  if  future  phases  of  trail  networks  are  to  be  realized.  Perhaps  other  funding   sources  can  be  secured  for  theses  future  phases  of  development.

In  short,  the  scopes  of  work  proposed  within  this  Phase  of  Work  is  just  the  beginning  of  what   can  leverage  many  other  opportunities  to  secure  Post  Mine  Uses  that  create  higher  and  better   uses  for  these  lands.

activity can prove to be a protracted activity as reclamation work and permits must be worked in cooperation with each other.

RCR, LLC will endeavor to introduce and sustain passive water treatment, such as “cattails” and other aquatic plants beneficial to the long-term reclamation efforts where possible to improve water qualities around existing water sources as practical. Other areas on property may also prove to be able to accept and sustain such aquatic vegetation. RCR, LLC will seek to engage institutions of higher education to potentially partner and assume research and other outreach activities on areas of the reclaimed site.

The supporting Russell County IDA Resolution was adopted prior to the submission of this application and contemplated an additional 3° Phase of development. This phase would include a significant development to create outdoor recreation and conservation of targeted acreage within the existing property boundaries for a higher and better use of these proposed Post Mine Uses. RCR, LLC fully supports this next Phase of development.

Out of respect for other applicants so as not to potentially diminish the amounts for other Grantee awards, RCR, LLC has decided to defer this 3° phase of joint-development with the Russell County IDA to future grant cycles and/or with other funding agencies.

Both RCR, LLC and the Russell County IDA remain fully committed to the next Phase of planned development to achieve a higher and better use of the reclaimed lands through new outdoor recreation and conservation efforts.

The opportunities for future development of outdoor recreation and conservation are significant. Within the 1,700 acres of the property, it is possible to eventually host the addition of over 100 miles of trail networks with shelters and campsites to meet increases in public demand. It is also worthy to note that this property is bordered by only one other land owner who is the owner of tens of thousands of acres in southwest Virginia. So, there are real possibilities of leverage and partnership beyond these initial Phases of development.

The planning for outdoor recreation and conservation must occur at the beginning of this reclamation project if future phases of trail networks are to be realized. Perhaps other funding sources can be secured for theses future phases of development.

In short, the scopes of work proposed within this Phase of Work is just the beginning of what can leverage many other opportunities to secure Post Mine Uses that create higher and better uses for these lands.

Provide  description  of  anticipated  outcomes  relative  to  Economic  Development  and/or   Community  Development:

Goal       Objectives       Outcomes

  1. Reclaim  10  AML   Seal  open  portals,     Enhancements  to  Public  Safety,   Features     cover,  re-­‐vegetate  soil   prepare  for  future  trail  development

  1. Create  160  Acre   Increase  Prospect       Create  Jobs,  generate   Industrial  Site     site  selection  process     capital  investment

  1. Reclaim  gob  pile   Remove  500k  cubic  yards   Return  approx    32  acres  and   of  gob  away  from       2k  linear  feet  to  stream  bank,   Dumps  Creek       improve  water  quality

4.   Introduce  and       Determine  suitability     Improvements  to  water  quality

sustain  passive     of  passive  water  treatment   and  enhancements  to  vistas   water  treatment   vegetation  species

How  will  these  outcomes  be  measured:   In  addition  to  the  outcomes  described  above,  other  related  outcomes  can  be  measured.

The  10  AML  Features  will  be  reclaimed  in  a  manner  that  will  further  safeguard  the  public  from   potential  harm  while  supporting  a  higher  and  better  Post  Mine  Use.

The  pre-­‐1977  32-­‐acre  gob  pile  will  be  removed  from  the  stream  bank  of  the  impaired  stream,   Dumps  Creek,  with  the  land  returned  to  stream  bank.  Water  quality  will  improve  and  will  be   much  more  pleasing  to  the  view-­‐shed.

Removal  of  the  500k  cubic  yard  gob  pile  greatly  minimizes  the  exposure  of  a  catastrophic  flood   releasing  all  or  a  portion  of  the  500k  cubic  yards  of  gob  into  Dumps  Creek  and  the  Clinch  River.

Improvements  to  the  water  quality  of  Dumps  Creek  and  the  Clinch  River  is  always  an  important   and  highly  desirable  outcome.

Adding  this  repurposed  industrial  site  into  properties  that  the  Virginia  Economic  Development   Partnership  (VEDP)  markets  can  be  a  “game  changer”  for  the  coalfields  of  southwest  Virginia.  If   the  proposed  scopes  of  work  are  funded,  consider  the  following  transformation  as  a  measured   outcome:

a.   Today,  VEDP  markets  1018  industrial  sites  throughout  the  state   b.   Of  the  1018  sites,  only  206  sites  have  100  acres  of  land  available   c.   Of  the  206  sites,  only  60  have  access  to  existing  rail  siding   d.   Of  the  60  sites,  only  41  have  access  to  water   e.   Of  the  41  sites,  only  12  have  access  to  natural  gas

Provide description of anticipated outcomes relative to Economic Development and/or Community Development:

Goal Objectives Outcomes 1, Reclaim 10 AML _ Seal open portals, Enhancements to Public Safety, Features cover, re-vegetate soil prepare for future trail development 2. Create 160 Acre —_Increase Prospect Create Jobs, generate Industrial Site site selection process capital investment 3. Reclaim gob pile Remove S00k cubic yards —_Return approx 32 acres and of gob away from 2k linear feet to stream bank, Dumps Creek improve water quality 4. Introduce and Determine suitability Improvements to water quality sustain passive of passive water treatment and enhancements to vistas water treatment vegetation species

How will these outcomes be measured: In addition to the outcomes described above, other related outcomes can be measured.

The 10 AML Features will be reclaimed in a manner that will further safeguard the public from potential harm while supporting a higher and better Post Mine Use.

The pre-1977 32-acre gob pile will be removed from the stream bank of the impaired stream, Dumps Creek, with the land returned to stream bank. Water quality will improve and will be much more pleasing to the view-shed.

Removal of the 500k cubic yard gob pile greatly minimizes the exposure of a catastrophic flood releasing all or a portion of the 500k cubic yards of gob into Dumps Creek and the Clinch River.

Improvements to the water quality of Dumps Creek and the Clinch River is always an important and highly desirable outcome.

‘Adding this repurposed industrial site into properties that the Virginia Economic Development Partnership (VEDP) markets can be a “game changer” for the coalfields of southwest Virginia. If the proposed scopes of work are funded, consider the following transformation as a measured outcome:

a. Today, VEDP markets 1018 industrial sites throughout the state

b. Of the 1028 sites, only 206 sites have 100 acres of land available

c. Of the 206 sites, only 60 have access to existing rail siding

d. Of the 60 sites, only 41 have access to water

e. Of the 41 sites, only 12 have access to natural gas,

Being  able  to  market  an  industrial  site  that  is  only  1  of  12  in  Virginia  with  such  unique  and   competitive  site  characteristics  should  create  a  high  level  of  prospect  interest  in  the  site   selection  process.  Project  Reclaim  will  provide  a  highly  visible  example  of  what  higher  and  best   use  of  reclaimed  coal  properties  can  be  repurposed.

Again,  this  is  a  shovel  ready  project  that  can  commence  work  within  60  days  of  the   reclamation  permits  being  issued!

Long-­‐term  benefits  to  the  local  economy:   The  Public-­‐Private  Partnership  joint-­‐venture  model  that  the  Russell  County  IDA  and  RCR,  LLC   propose  to  create  as  a  result  of  the  incentives  put  forth  through  the  2017  AML  Pilot  Grant  can   prove  to  be  a  model  that  provides  a  high  degree  of  leverage  of  public-­‐private  match  producing   a  measurable  nexus  between  reclamation  and  repurposing  for  economic  development.

Desirable  land  in  the  coalfields  of  southwest  Virginia  is  scarce  and  is  mostly  held  by  large   companies.  Being  able  to  create  and  prove  a  model  of  industrial  development  wherein  highly   desirable  land  can  be  controlled  and  repurposed  for  economic  development  is  within  reach  and   has  a  narrow  window  of  opportunity  to  be  acted  upon  by  virtue  of  this  non-­‐traditional   approach  launched  through  the  2017  AML  Pilot  Grant.

The  long-­‐term  benefits  to  the  region  and  to  the  economy  have  been  previously  detailed  in  this   application.  In  the  bigger  picture,  investments  made  in  conjunction  with  reclamation  and   repurposing  of  this  1,700  acre  site  are  for  the  clear  purposes  of  economic  development  and   improvements  to  the  environment.

This  non-­‐traditional  approach  to  reclamation  is  intended  to  be  transformational  to  the  point   where  the  coalfields  could  now  successfully  compete  for  industries  never  imagined  before  that   might  require  over  160  acres  of  flat  land  with  rail  access.  Think  of  the  large  scale  metal   manufacturer  prospect  who  must  have  access  to  rail,  a  building  with  over  500k  SF,  and  a   workforce  hungry  to  make  product;  think  of  a  very  large-­‐scale  commercial  recycling  facility;  or   other  large  manufacturers  requiring  a  site  with  over  100  acres  and  access  to  rail;  all  new   possibilities  never  imagined  before.

Work  to  create  this  160-­‐acre  industrial  site  can  begin  within  60  days  of  the  reclamation  permits   being  granted.  This  is  a  tremendous  competitive  advantage  in  reducing  the  timeline  being   experienced  to  be  able  to  “move-­‐dirt”  in  the  development  of  industrial  sites.  Other  localities   without  the  opportunity  to  develop  industrial  land  under  a  Post  Mine  Use  plan  may  have  to   wait  5  years  or  longer  to  have  the  chance  to  attempt  to  clear  all  of  the  complex,  burdensome,   and  expensive  regulatory  hurdles  in  order  to  obtain  required  permissions  before  industrial  site-­‐ work  could  commence.  This  site  is  highly  visible,  highly  desirable,  one  of  a  kind,  and  is  shovel   ready  and  ready  to  go!

Being able to market an industrial site that is only 1 of 12 in Virginia with such unique and competitive site characteristics should create a high level of prospect interest in the site selection process. Project Reclaim will provide a highly visible example of what higher and best use of reclaimed coal properties can be repurposed.

Again, this is a shovel ready project that can commence work within 60 days of the reclamation permits being issued!

Long-term benefits to the local economy:

The Public-Private Partnership joint-venture model that the Russell County IDA and RCR, LLC propose to create as a result of the incentives put forth through the 2017 AML Pilot Grant can prove to be a model that provides a high degree of leverage of public-private match producing a measurable nexus between reclamation and repurposing for economic development.

Desirable land in the coalfields of southwest Virginia is scarce and is mostly held by large companies. Being able to create and prove a model of industrial development wherein highly desirable land can be controlled and repurposed for economic development is within reach and has a narrow window of opportunity to be acted upon by virtue of this non-traditional approach launched through the 2017 AML Pilot Grant.

The long-term benefits to the region and to the economy have been previously detailed in this application. In the bigger picture, investments made in conjunction with reclamation and repurposing of this 1,700 acre site are for the clear purposes of economic development and improvements to the environment.

This non-traditional approach to reclamation is intended to be transformational to the point where the coalfields could now successfully compete for industries never imagined before that might require over 160 acres of flat land with rail access. Think of the large scale metal manufacturer prospect who must have access to rail, a building with over 500k SF, and a workforce hungry to make product; think of a very large-scale commercial recycling facility; or other large manufacturers requiring a site with over 100 acres and access to rail; all new possibilities never imagined before.

Work to create this 160-acre industrial site can begin within 60 days of the reclamation permits being granted. This is a tremendous competitive advantage in reducing the timeline being experienced to be able to “move-dirt” in the development of industrial sites. Other localities without the opportunity to develop industrial land under a Post Mine Use plan may have to wait 5 years or longer to have the chance to attempt to clear all of the complex, burdensome, and expensive regulatory hurdles in order to obtain required permissions before industrial site- work could commence. This site is highly visible, highly desirable, one of a kind, and is shovel ready and ready to go!

1

Supplemental Information

For DMME Use Only:
Primary VA AML Project Contact: Lesa Baker AML Pilot Project Name: Project Reclaim Problem Area Number and Name: Russell County VA Problem Area Lake Bonaventure VA-0820 AMLISKEY VA000820 Project Number(s): Pending Title IV AML grant funding (Amount and Status) None

Project Location Economic Data: As reported by the Virginia Coal Field Development Authority, the economic data as shown in the Income & Poverty table below illustrates that Russell County Median Household Income is below the state average. https://www.arc.gov/reports/socio_report.asp

Russell County Appalachian Virginia

Virginia Appalachian Region

United States

Russell County Appalachian Virginia

Virginia Appalachian Region

United States

POPULATION

Population, April 1, 2010

28,897 770,044 8,001,024 25,243,456 308,745,538

Numeric Population Change, 2000 to 2010

-1,411 12,114 922,509 1,600,878 27,323,632

INCOME

Per Capita Income, 2015

$32,047 $34,758 $52,052 $38,593 $48,112

Per Capita Income, 2014

$30,705 $33,507 $50,345 $37,260 $46,049

UNEMPLOYMENT

Unemployment Rate, 2015

6.5% 5.7% 4.4% 5.8% 5.3%

Unemployment Rate, 2014

7.9% 6.7% 5.2% 6.5% 6.2%

POVERTY

https://www.arc.gov/reports/socio_report.asp http://www.arc.gov/research/SourceandMethodologyCensusPopulationChange20002010.asp http://www.arc.gov/research/SourceandMethodologyCensusPopulationChange20002010.asp http://www.arc.gov/research/SourceandMethodologyCensusPopulationChange20002010.asp http://www.arc.gov/research/SourceandMethodologyCensusPopulationChange20002010.asp http://www.arc.gov/research/SourceandMethodologyCensusPopulationChange20002010.asp http://www.arc.gov/research/SourceandMethodologyCensusPopulationChange20002010.asp http://www.arc.gov/research/SourceandMethodologyPersonalIncomeRates.asp http://www.arc.gov/research/SourceandMethodologyPersonalIncomeRates.asp http://www.arc.gov/research/SourceandMethodologyPersonalIncomeRates.asp http://www.arc.gov/research/SourceandMethodologyPersonalIncomeRates.asp http://www.arc.gov/research/SourceandMethodologyUnemploymentRates.asp http://www.arc.gov/research/SourceandMethodologyUnemploymentRates.asp http://www.arc.gov/research/SourceandMethodologyUnemploymentRates.asp http://www.arc.gov/research/SourceandMethodologyUnemploymentRates.asp For DMME Use Only: Primary VA AML Project Contact: Lesa Baker AML Pilot Project Name: Project Reclaim

Problem Area Number and Name: Russell County VA Problem Area Lake Bonaventure VA-0820 AMLISKEY VA000820

Project Number(s): Peni

1B

‘Supplemental Information

Title IV AML grant funding (Amount and Status) None

Project Location Economic Data: As reported by the Virginia Coal Field Development Authority, the economic data as shown in the Income & Poverty table below illustrates that Russell County Median Household Income is below the state

average. https://www.arc.gov/reports/socio report.asp

Russell County

Appalachian Virginia

Russell County Appalachian

Virginia

Virginia

Virginia

Appalachian Region

‘Appalachian Region

United States

United States

POPULATION

Population, April 41,2010

‘Numeric Population ‘Change, 2000 to 2010

INCOME

Per Capita Income, 2615

Per Capita

Income, 2014

UNEMPLOYMENT

Unemployment Rate,

2015,

Unemployment Rate,

2014

POVERTY

23,897

sant

$32,087

$30,705,

770044

a4

$34,758

$33,507

65% 51%

79% 67%

8,001,024

922,508

$52,052

$50,345,

25,283,456

1,600,878,

$38,593

$37,260

44%

52%

308,745,538,

27,323,632

$48,112

$46,003,

52% 53%

65% 62%

2

Persons Below Poverty Level, 2011–2015

5,777 138,490 921,822 4,219,279 47,749,043

Persons Below Poverty Level, 2010–2014

5,249 137,762 914,237 4,225,983 47,755,606

Poverty Rate, 2011–2015

20.7% 19.0% 11.5% 17.1% 15.5%

Poverty Rate, 2010–2014

18.7% 18.8% 11.5% 17.2% 15.6%

With the exception of Tazewell County, the southwest Virginia coalfield counties are either distressed or at-risk.
The Appalachian Regional Commission uses an index-based classification system to compare each county in the nation with national averages on three economic indicators—three-year average unemployment rates, per capita market income, and poverty rates. Based on that comparison, each Appalachian county is classified within one of five economic status designations—distressed, at-risk, transitional, competitive, or attainment. Distressed counties are those that rank in the worst 10 percent of the nation’s counties. At-Risk counties are those at risk of becoming economically distressed. They rank between the worst 10 percent and 25 percent of the nation’s counties. An AML reclamation project would provide employment opportunities and inject a cash infusion into the local economies.
Although it could improve quality of life for a limited perspective, any single AML project should not be viewed as an action that will lift a county from the distressed or at-risk category.

http://www.arc.gov/research/SourceandMethodologyPovertyRates.asp http://www.arc.gov/research/SourceandMethodologyPovertyRates.asp http://www.arc.gov/research/SourceandMethodologyPovertyRates.asp http://www.arc.gov/research/SourceandMethodologyPovertyRates.asp http://www.arc.gov/research/SourceandMethodologyPovertyRates.asp http://www.arc.gov/research/SourceandMethodologyPovertyRates.asp http://www.arc.gov/research/SourceandMethodologyPovertyRates.asp http://www.arc.gov/research/SourceandMethodologyPovertyRates.asp http://www.arc.gov/research/SourceandMethodologyPovertyRates.asp http://www.arc.gov/research/SourceandMethodologyPovertyRates.asp sam 138,490 921,822 4219,278 47,788,083

5249 137,762 914,237 425,983 47,795,606 20.7% 19.0% 15% wa% 155% 18.7% asa% 15% 2% 15.6%

Russell County U.S.

‘County Economic Status, FY 2017 AtRIsk- ‘Three-Year Average Unemployment Rate, 2012-2014 8.4% 7.2% Per Capita Market Income, 2014 $20,413 $38,117 Poverty Rate, 2010-2014 18.7% 15.6% Three-Year Avg. Unemp. Rate, Percent of U.S. Avg., 2012-2014 116.2% 100.0% Per Capita Market Income, Percent of U.S. Average, 2014 53.6% 100.0% PCMI, Percent of U.S. Avg., Inversed, 2014 186.7% 100.0% Poverty Rate, Percent of U.S. Average, 2010-2014 119.7% 100.0% ‘Composite Index Value, FY 2017 1409

Index Value Rank (of 3.113 counties in U.S.,1 is the best), FY 2017 281 -

Quartile (1 is the best), FY 2017 4:

With the exception of Tazewell County, the southwest Virginia coalfield counties are either distressed or at-risk. The Appalachian Regional Commission uses an index-based classification system to compare each county in the nation with national averages on three economic indicators—three-year average unemployment rates, per capita market income, and poverty rates. Based on that comparison, each Appalachian county is classified within one of five economic status designations—distressed, at-risk, transitional, competitive, or attainment. Distressed counties are those that rank in the worst 10 percent of the nation’s counties. At-Risk counties are those at risk of becoming economically distressed. They rank between the worst 10 percent and 25 percent of the nation’s counties. An AML reclamation project would provide employment opportunities and inject a cash infusion into the local economies. Although it could improve quality of life for a limited perspective, any single AML project should not be viewed as an action that will lift a county from the distressed or at-risk category.

ARC County Economic Status Designation by National Index Value Rank -_ =f +

Ranked index values "AUS Counter > Higher ince Values Lower index Values

3

Project Location

Project Location

PROJECT RECLAIM y RUSSELL COUNTY

.

comin nt errinon cEBESA

4

Site Photo

32 acre pre law gobpile to be reclaimed.

Site Photo

32 acre pre law gobpile to be reclaimed.

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Z 1908.831

2030

Z 1541.586

12605-2 222

12602-1

APPROXIMATE

LOCATION

OF FINES

DUMP SITE

APPROXIMATE

LOCATION

OF FINES

HAULROAD

(3.5 MILES)

APPROXIMATE

LOCATION

OF FINES

HAULROAD

(3.5 MILES)

CEM.

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2027

Z 1908.831

APPROXIMATE

LOCATION OF

ACCESS ROAD

32

ACRES

4-ACRE

LAYDOWN

AREA

100,000

SQUARE FOOT

BUILDING PAD

STORMWATER

BASIN

SIDE

RAIL

Appalachian Technical Services, Inc.

Engineering, Architecture, Surveying, Ecology & Environmental Science

Abingdon Office

P.O. Box 1897

475 West Main Street

Abingdon, VA 24212

(276) 676-4262

Wise Office

P.O. Box 3537

6741 Indian Creek Road

Wise, VA 24293

(276) 328-4200

d

01

01

RUSSELL COUNTY RECLAMATION, LLC

32-ACRE AML DEVELOPMENT AREA

GRAPHIC SCALE

1 inch = ( IN FEET )

400 ft.

GRAPHIC SCALE

1 inch = ( IN FEET )

800 ft.

AutoCAD SHX Text 1A

AutoCAD SHX Text 3305531.10 SQ. FT.

AutoCAD SHX Text 75.88 ACRES

AutoCAD SHX Text Designed By

AutoCAD SHX Text Drawing Number

AutoCAD SHX Text Project Number

AutoCAD SHX Text Checked By

AutoCAD SHX Text Drawn By

AutoCAD SHX Text Date

AutoCAD SHX Text Sheet

AutoCAD SHX Text Sheet/Layout Name

AutoCAD SHX Text (24X36L)

AutoCAD SHX Text Z-32-ACRE-DEVELOPMENT-AREA

AutoCAD SHX Text of

AutoCAD SHX Text Scale

AutoCAD SHX Text DWM

AutoCAD SHX Text LAC

AutoCAD SHX Text DWM

AutoCAD SHX Text 12/04/2017

AutoCAD SHX Text 1674.01

AutoCAD SHX Text AS SHOWN

AutoCAD SHX Text 200’

AutoCAD SHX Text 0’

AutoCAD SHX Text -400’

AutoCAD SHX Text 800’

AutoCAD SHX Text 1600’

AutoCAD SHX Text 400’

AutoCAD SHX Text 400’

AutoCAD SHX Text 0’

AutoCAD SHX Text -800’

AutoCAD SHX Text 1,600’

AutoCAD SHX Text 3,200’

AutoCAD SHX Text 800’

ron

400"

GRAPHIC SCALE

(IN FEET) 1 inch = 400 f

00"

rae SLING

ROXIMATE

1600

CATION—

SESS

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RUSSELL COUNTY RECLAMATION,

32-ACRE AML

(IN FEET) inch = 800 LLC

1

DEVELOPMENT AREA

GRAPHIC SCALE

200" 12/04/2017

100,000

(2ex360)

SQUARE FOOT BUILDING PAD

4-ACRE LAYDOWN AREA

STORMWATER BASIN ®

3.200 Appalachian Technical Servi

RESOLUTION OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF RUSSELL COUNTY, VIRGINIA

WHEREAS, the Industrial Development Authority of Russell County, Virginia, hereinafter referred to as “the IDA” and Russell County Reclamation, LLC, have agreed to jointly develop, through Public Private Partnership, a 160 acre industrial site, a site for new recreational opportunities, and the removal of 500,000 cubic yards of pre-1977 gob; and

WHEREAS, the IDA and Russell County Reclamation, LLC, have identified and agreed to jointly create a nexus of Reclaiming Abandoned Mine Lands and adjacent coal mining lands with Economic Development consistent with the Office of Surface Mines 2017 Abandoned Mine Lands Pilot Program; and

WHEREAS, the creation of an industrial site of 160 acres with access to rail siding will allow the coalfield region to immediately begin marketing the site to prospective industries that never before might consider locating within the region; and

WHEREAS, Russell County Reclamation, LLC, has identified and proposed to reclaim 16 Abandoned Mine Lands Features known to the Virginia Department of Mines Minerals and Energy that are adjacent to the lands to be repurposed for economic development; and

WHEREAS, the IDA and Russell County Reclamation, LLC, have agreed to pursue three grant requests from the 2017 Abandoned Mine Lands 2017 Pilot Grant Program to create a 160-acre Industrial Site, a 418-acre Recreational area with Walking and Horse trails, with the preservation of a 40-acre Lake to complement the vista of the trail network while serving the dual purpose of enhancing the downstream stormwater management and water quality of the 160 acre industrial site, and the removal of a pre-1977 500,000 cubic yard gob pile from the banks of Dumps Creek with 32 acres being returned to stream bank; and

WHEREAS, Russell County Reclamation, LLC, has agreed to contribute to the IDA up to 625 total acres of land as match to further enhance and leverage this development upon final reclamation and bond release; and

WHEREAS, the IDA declares its intention to make a long-term commitment to fully develop these 1,700 acres with Post Mine Uses that create higher and better uses described herein.

NOW, THEREFORE, BE IT RESOLVED that the IDA will aggressively pursue the development of this unique property and unique window of opportunity with Russell County Reclamation, LLC, that offers the citizens of Russell County and the coalfields of Southwest Virginia the once in a generation opportunity to immediately create an

industrial site of over 160 acres with rail access that will be developed and classified with positive site characteristics as only 1 of 4 in all of southern Virginia

Dated: September 25,2017

INDUSTRIAL DEVELOPMENT AUTHORITY OF RUSSELL COUNTY, VIRGINIA

By: Kig@@esa ERNIE MCFADDIN, Chairman

H. MORGAN GRIFFITH 2202 Rayounn House OFrce BuO

‘9 Dieter, Vito ‘Wastiaron, O¢ 20818 cS (202) 285-3861 Prone cownarrree on f (202 25-0078 Fax ENERGY AND COMMERCE 3 23 Wes Man Sener “Absicoon, VA 24210

acount (276) s25"40s Prone

a Congress of the United States — Smo eee Mouse of Representatives open ssc”

_woew-morgengifith house. gov Washington, BE 20515-4609

Mr. Butch Lambert, Deputy Director

Virginia Department of Mines, Minerals and Energy 3405 Mountain Empire Road

P.O. Drawer 900

Big Stone Gap, Virginia, 24219

October 3, 2017

Dear Butch,

1am writing to you today in support of the grant application that has been submitted to you by Russell County Reclamation, LLC and Russell County Industrial Development Authority. This project, Project Reclaim, will conduct a large-scale reclamation which will create industrial sites that would have high potential to attract economic development prospects.

‘My direct efforts and support of legislation to help revitalize coal communities are apparent with the funding for this 2017 AML Pilot Program. The funds allocated to this program will expand the impact on affected areas in the Appalachian states for the reclamation of abandoned mine lands in conjunction with economic development and reuse goals. This project serves a great need for far Southwestern Virginia in an area that has suffered tremendously from the downtum in the coal mining industry.

As you have seen from their documentation, the “Project Reclaim” site has several AML features that will achieve reclamation goals as well as prepare large industrial sites ready for immediate economic development usage, while removing Gob piles and developing a walking/horse trails. I believe you can see how clearly the proposed project fits within the guidelines of this AML Pilot Program consistent with legislative intent specifically created to assist these affected areas.

Task you to consider all of these factors as favorably as you can under the rules and regulations governing this program. Thank you for your consideration and for your time. With best wishes, Tremain

Sincerely yours,

thf

1 of Congress

M3, DMME Master Application
Pilot Proposal Form
Project Location
Site Photo

Z-32-ACRE-AML-DEVELOPMENT-AREA
Sheets and Views
(24x36L)


Executed Resolution
ProjectReclaim LOS
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