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Larkin HOj Larkin Hof Daly Lindgren Ltd. 1�- ATTORNEYS 1500 Wells Fargo Plaza 7900 Xerxes Avenue South Minneapolis, Minnesota 55431-1194 GENERAL: 952 835 3800 FAX 952-896-3333 WES: WWRLIarkklnhoirtnan.CAm November 10, 2010 Caroline Bell Beckman Erickson, Bell, Beckman Quinn, P.A. 1700 West Highway 36 Roseville, MN 55113 Re: Bituminous Roadways, Inc. Dear Ms. Beckman: This letter responds to your correspondence of November 1, 2010. Bituminous Roadways, Inc. (the "Company continues to seek approval from the City of Roseville "City of the development of its facility as first presented to the City on March 6, 2009. The development of this industrial facility in an isolated industrial area of the City continues to be a very sound proposition. Since that time, and in response to direction from the City, the Company has, in addition to submitting all required applications for the project, submitted the project for environmental review conducted by the Minnesota Pollution Control Agency (MPCA). This environmental review required that the Company prepare an air emissions facility permit in order that MPCA could fully evaluate potential air emissions. As a result, MPCA has prepared a draft air emissions permit which confirms the air emissions for the facility meet state and federal standards. The result of the environmental review process to date is that an environmental assessment worksheet has been prepared which concludes that the proposed facility (including a rail transload facility which is not currently proposed for construction but was evaluated by MPCA because it is a potential extension of the project) does not present a potential for significant environmental effects from the proposed project. In addition, and in response to issues raised by the City Council's discussions of the Company's project at recent council meetings, the Company had further evaluated traffic, noise, and odor. The results of these additional studies were presented to the City concluding that none of those items would present adverse impacts relating to the proposed project. The present status of the environmental review is that the technical and scientific analysis of the project demonstrates the lack of adverse effects from the proposed project. Nevertheless, the City Council has acted to circumvent the environmental review process by changing its ordinances after the Company has incurred significant expense in reliance on the direction it received from the City.