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/c—MIG ASTM C-150 covers all types of portend cements with two types of specifications or standards, one being chemical composition the other.,physical properties. Both standards must be met in order for the cement manufactured to be considered Portland cement. ASTM C-150 also contains 13 test methods for the testing of the chemical and physical properties. These test methods are very specialized with very few qualified laboratories able to do most or all the tests. Generally speaking there is only a hand full of laboratories nationally (other than the quality control laboratories of the manufacturing plants) that have the equipment and expertise necessary to do the tests as specified by ASTM C-150. CEMEX Portland cement does meet ASTM C-150 specifications. One listed criteria for recycling is the product manufactured with the recyclable material have and existing economic value. The market for Portland cement is obvious. CEMEX operates its plant at full capacity and sells all the clinker we make. The other two criteria deal with quantity of use: use of excess recyclable material or insufficient use of the recyclable material. Again CEMEX believes these criteria do not apply because the quantity of use of the spent abrasives is dependent on the iron and silica content. If CEMEX uses too much spent abrasives in our raw mix, when we produce the final product (Portland cement) it will not meet the chemical specification of ASTM: C-150 and would not be a product that could be used by Caltrans or our other customers, who depend on a specification cement. From a Portland cement quality point of view there is no such term as using an "insufficient" amount of spent abrasives. Again spent abrasive is used for its iron and silica content if: CEMEX were to use an "insufficient" amount we would produce a Portland cement that would not be marketable because it would not meet ASTM C-150 unless we add additional materials high in iron and silica to bring the raw mix up to company standards. This in fact is now what CEMEX does, there is simply not enough spent abrasive available for CEMEX to manufacture a specification Portland cement using all spent abrasive as an iron replacement so we supplement the iron content of our raw mix with other more costly iron ores. For CEMEX there is an economic advantage to use as much spent abrasive as possible to produce a specification product. By utilizing spent abrasives which follow the necessary Federal guidelines, materials which would otherwise becorne hazardous waste are used in the manufacture of cement to reduce environmeF iia I problems while producing a high-quality construction product. We appreciate your confidence in our recycling program. Sin.e�rely, 1 Leslie Evans Senior Negotiator, Raw Materials - United States of America Office: (713) 722-1724 Cell: (832) 422-8045 Efax: (832) 553-7641 Address: 929 Gessner Road, Suite 1900 Houston, TX 77024 USA e-Mail: lesliek.evans@cemex.com