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PA0 �0018L CC!>MPA55 LAND G R O U P � � � George Reed, Inc. ("GRI" or "Company') operates the Reed-Clements Quarry ("QuarrY') (APN: 019-220-40) pursuant to the requirements of a Conditional Use Permit (PA-0200182) issued by San Joaquin County("County'). PA-D2001S2 indicates an expiration date of December 31, 2023. As a component of the Company's long-range planning, and to ensure the continued availability of a critical source of local aggregate material, GRI seeks a time extension to the Conditional Use Permit for an additional 15-years (through December 31, 2035) ("Project"). Other than the extension of time, GRI seeks no change to any element of the approved operation or Conditional Use Permit. • • Aggregate mine sites in California are notoriously difficult to permit, and require significant capital investment to develop. Once a mine site is operational, it is preferential from an environmental and operational standpoint Thai the permitted reserves be fully mined to avoid the cost and environmental impact of developing alternative sources of aggregate to serve a local market. As such, it is important for Company and community long-range planning that the term of the mining permit align with the anticipated life of the aggregate reserve. At the current pace of mining, the Conditional Use Permit will expire before the permitted reserves within the approved mining boundary have been fully realized. Extending the term of the Conditional Use permit will enable the continued extraction of a proven aggregate reserve and continued supply of an important source of local construction materials. Regional Demand The Department of Conservation - California Geological Survey ("CGS") monitors and reports on the availability and production of aggregate materials used for construction purposes throughout the State of California, and conducts on-going studies that identify and evaluate permitted reserves, production, and available resources. In 2018, CGS published a report titled Aggregate Sustainability in California, which analyzed aggregate availability within 30 defined aggregate "production-consumption" regions across the state ("Report"). The Report provides reliable information to local agencies on the status of local aggregate reserves, and projects a demand for those reserves over a 50-year time horizon. With respect to San Joaquin County,the Report Identified a significant shortage of permitted aggregate reserves that is not projected to meet anticipated regional demand over the next 50 years. More specifically,the Report found chat the Page 1