MilierCoors

AUgUSt 8, 2011

James Smith Vice Pretideot and Pfant Manager MilloCoooLLC K63Ea*MM<bwR<NMl Eden.NC 27ZIS 336-627-2204

Rockingham County Board of Commissioners Pamela M. McLain, MMC, NCCCC Clerk to the Board PO Box 101 Wentworth, NC 27375 Subject:

CERTIFIED MAIL - RETURN RECEIPT REQUESTED

MilierCoors LLC Comments Application for Special Use Permit for Sanitary Landfill Operations- May 20,2011 PBK Holdings, LLC ("PBK Integrated Waste Enterprises") Rockingham County, North Carolina

Dear Ms. McClain: A number of Rockingham County and local entities have requested MilierCoors' input into the proposed landfill operations located In Rockingham County, North Carolina on property currently owned by Whitt Family Farms, LLC adjacent to the Dan River MilierCoors has completed a dose examination of the above-referenced application, including ail narrative documents and supporting information and has some concerns. MilierCoors owns and operates the Eden Brewery located at 863 East Meadow Road in Eden, Rockingham County and employs approximately 595 people. The Eden Brewery also retains numerous contractors and personnel for our local transportation, commercial, engineering, food and beverage and construction services, As a responsible neighbor and partner with the citizens of Rockingham County and the City of Eden, we are committed to brewing our great beers in the most efficient and environmentally responsible manner. Our core environmental commitments include ensuring a secure future through water stewardship, reducing our energy and carbon footprint, driving packaging susta inability and moving towards zero waste from operations. just this year, the Eden Brewery has become a zero waste to landfill facility, disposing no waste from our operations in a landfill. Hie Eden Brewery has also achieved greater than 99% reuse or recycling rates for spent materials from the beer making process. Water Is our most valuable resource and the Dan River is extremely Important to enabling continued operations in Eden as water is a component of every step of the beer making process. MilierCoors has partnered with our local community, Including the City of Eden and the Dan River Basin Association, to promote and ensure good water quality in the Dan River through multiple projects and funding within the Dan River Watershed. MilierCoors has concerns regarding the proposed landfill and is opposed to the approval of the Special Use Permit Application primarily due to its potential impacts on Dan River water quality that could threaten operations at the Eden Brewery, as this is the only source of water to our operations. Further,

since the brewery is a zero waste to landfill facility, the proposed landfill is not necessary to our continuing operations at the brewery. Below are our concerns regarding the Special Use Permit Application. The required criteria for the Special Use Permit Application are reiterated below in italics, followed by our comments. (a) That the use or development is located, designed and proposed to be operated so as to maintain or promote the pubtfc health,, safety and general welfare; After careful review of the documentation and narratives submitted by PBK Holdings, LLC regarding the design and operation of the proposed landfill, we are concerned that the development will not maintain or promote the public health, satiety and general welfare. The submittal fails to discuss the long-term operations of the proposed facility and what will be done to ensure compliance with existing regulations. The application also fails to disdose the name of the operating company; therefore, no review of operating history and compliance at other sites owned or operated by this company can be made. Operating history at other sites is critical to understanding how successful a new operation in Rockingham County might be. Although PBK Holdings, LLC states the landfill will be located outside of required riparian buffers, the supporting documents and engineering drawings show the landfill cells will be located directly on top of multiple waterways and wetlands leading to the Dan River, which disregards the required buffer zones. This is a significant risk to public health and safety. Normal landfill operations involve temporary roadways and soil disturbances that can contribute to river impairment if continual vigilance to erosion control is not maintained. However, even with such vigilance, a buffer is required to be maintained to limit any negative impact to the river, including solids and debris. Other potential failures such as a liner breach, flooding, leachate collection system overflow or human error, could cause leachate to immediately drain into the Dan River potentially impacting many downstream water users. Any of these mentioned failures will cause public health risks due to increased bacteria levels including fecal coliform, organic compounds, heavy metals, acids, carcinogenic compounds and other contaminants to be discharged directly into the adjacent Dan River. Such a failure would pose a contamination risk to the citizens of Rockingham County drinking water source. The proposed landfill has the potential to cause significant and harmful risks and all design criteria should anticipate operational failures, with redundant controls, to protect public health, safety and general welfare. (b) That the use or development compiles with all required regulations and standards of this ordinance and with all other applicable regulations; With regard to North Carolina Solid Waste regulations, it is unclear if the proposed landfill location is capable of meeting the requirements of NCAC 130A-295.6(b), which requires a "buffer between any perennial stream or wetland and the nearest waste disposal unit of a sanitary landfill of at least 200

feet." As the landfill cells are proposed to be sited directly on top of existing perennial streams and wetlands, the application foils to demonstrate compliance with the 200-foot buffer requirement. NCAC 130A-295.6(c)(2) prohibits a landfill from being constructed in: (2) A wetland, unless the applicant or permit holder can show all of the following, asto the waste disposal unit: a. Where applicable under section 404 of the federal Clean Water Act or applicable State wetlandslaws, the presumption that a practicable alternative to the proposed waste disposal wit Is available which does not involve wetlands Is clearly rebutted; b. Construction of the waste disposal unit will not do any of the following: 1. Cause or contribute to violations of any applicable State water quality standard. 2. Violate any applicable toxic effluent standard or prohibition under section 307 of the federal Clean Water Act. 3. Jeopardize the continued existence of endangered or threatened species or result in the destruction or adverse modification of a critical habitat, protected under the federal Endangered Species Act of 1973. 4. Violate any requirement under the federal Marine Protection, Research, and Sanctuaries Act of 1972. c. Construction of the waste disposal unit will not cause or contribute to significant degradation of wetlands. d. To the extent required under section 404 of the federal Clean Water Act or applicable State wetlands laws, any unavoidable wetlands impacts will be mitigated. The landfill design, proposal, plans and application for Special Use Permit do not dearly rebut the presumption that a practicable alternative to the proposed waste disposal unit is available that does not involve wetlands. The impacts to wetlands located on Whitt Family Farms, LLCproperty are unavoidable in the proposed plan and it is unclear how these impacts will be mitigated due to the landfill design and siting. At the present time, the application does not show how these regulations will be satisfied and it is in our opinion that they cannot be satisfied as alternative locations that do not impact wetlands likely exist in Rodcingham County and other surrounding counties within the Piedmont Triad Region. Additionally, NCAC 130A-25.6(h)(2) requires that "a leachate collection system shall be designed to return the head of the liner to 30 centimeters or less within 72 hours. The design shall be based on the precipitation that would fall on an empty cell of the sanitary landfill as a result of a 2S-year-24~hour storm event. The leachate collection system shall maintain a head of less than 30 centimeters at alt times during leachate redrcutotion." It is unclear if an on-slte leachate treatment facility or arrangements with others to manage leachate will meet the applicable regulations and mitigate impacts to downstream drinking water users. Finally, in NCAC 130A-295.6(f), states that "a sanitary landfill, other than a sanitary landfill for the disposal of construction and demolition debris waste, shall be constructed so that the post-settlement bottom elevation of the liner system, or the post-settlement bottom elevation of the waste if no liner system Is required, is a minimum of four feet above both the seasonal high groundwater table and the bedrock datum plane contours." It is unclear if the landfill liner will meet

this requirement since additional information and a geological survey would be required, which has not been provided.
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In summary, the Special Use Permit Application fails to clarify if applicable regulations and the Unified Development Ordinance are satisfied and therefore falsely claims that these requirements have already been met It is our belief that at the present time, these requirements are not capable of being satisfied. Rockingham County is encouraged to require full compliance for all applicable regulations in accordance with the requirements of the Special Use Permit and county development ordinances. (e) That the use or development Is located, designed and proposed to be operated so as to maintain or enhance the value of contiguous property, or that the use or development Is a public necessity; and The Eden Brewery is near the proposed landfill site and uses water immediately downstream of the proposed landfill site located adjacent to the Dan River. The submittai by PBK Holdings, UC fails to address the impact to the value of contiguous commercial property, Including property within the Dan River watershed and downstream users of water. The location of the proposed landfill creates an ongoing vulnerability that threatens the value of the water resource in Eden not to mention property values. Regardless of the quality of design, compliance with regulatory requirements or quality of operational management due to its location the landfill cannot be designed or operated to maintain or enhance the value of nearby properties and businesses, especially those that rely on the river for their livelihood. The above mentioned concerns are serious. The proposed landfill has not been demonstrated to be necessary. We are concerned that it will pose a risk to the public health, safety, welfare and value of surrounding properties and entities, and; therefore, does not meet the requirements of the Rockingham County Unified Development Ordinance or other applicable regulations. As a community partner and responsible industrial leader in Rockingham County and as a significant employer, MlllerCoors is very concerned with the siting of the proposed landfill and its impact on our community, particularly the Dan River watershed. Please contact Andrew Lucas at (336} 627-2592 should you have any questions regarding the information contained within this submittai. Sincerely,

ames Smith Vice President and Plant Manager