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1.1 - PROJECT BACKGROUND AND ENVIRONMENT AL IMPACT REPORT
PROCESS

CEMEX, Inc. ("CEMEX") successor-in-interest to Transit Mixed Concrete Company ("TMC"),
a division of Southdown, fuc.,3 is proposing to establish a sand and gravel mining operation in
the Soledad Canyon area of unincorporated Los Angeles County ("County"), California. The
mining operation involves mining a total of approximately 69.2 million tons of material to
produce and sell 56.1 million tons of sand and gravel over a period of up to 20-years to fulfill the
Federal Contracts that CEMEX entered into with the BLM, discussed below. The operation
includes plans for a concrete batch plant to produce and deliver ready-mixed concrete to the local
market. All proposed mining operations will be located north of Soledad Canyon Road and the
Santa Clara River, in Los Angeles County, California.

The majority of the Soledad Canyon Sand and Gravel Mining Project site (project site) is a "split
estate" with the mineral resources owned by the United States of America and administered by
the BLM. The surface estate is privately owned. The BLM and the County both have
responsibilities in connection with analyzing and approving a Mining and Reclamation Plan.
This Plan is submitted in compliance with the Surface Mining and Reclamation Act of 1975, as
amended ("SMARA"). The Mining and Reclamation Plan is also included as an attachment to
the judicial Consent Decree as Exhibit I.

The County is the local Lead Agency for the project, with the County Department of Regional
Planning (Department) administering the state-mandated environmental review process for the
issuance of the Surface Mining Permit and approval of a Reclamation Plan and financial
assurances for the Project. The County prepared the Final EIR, and the documents contained
therein, to comply with CEQA and the State CEQA Guidelines (Cal. Code Regs. Title 14,
Division 6, Chapter 3, §§ 15000 et seq. ("State CEQA Guidelines"). The FEIR. has been prepared
by the County in accordance with CEQA, as amended, and State and County Guidelines for the
implementation of CEQA.

The County has relied on Section 15084(d)(3) of the State CEQA Guidelines, which allows
acceptance of working drafts prepared by the applicant, a consultant retained by the applicant, or
any other person. The County has reviewed and edited as necessary the submitted drafts to
reflect the County's own independent judgment, including reliance on County technical
personnel from other departments.

The project is also subject to the jurisdiction or review authority of other federal, state, regional,
and local agencies including the BLM, the U.S. Army Corps of Engineers ("Corps"), U.S. Fish
and Wildlife Service ("USFWS"), California Department of Fish and Game ("CDFG"),
California Department of Conservation - Division of Mines and Geology ("CDMG"), California
Regional Water Quality Control Board ("CRWQCB"), State Water Resources Control Board
("SWRCB"), various departments within the County, and South Coast Air Quality Management
District ("SCAQMD").

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CEMEX acquired Southdown in November 2000, and is successor-in-interest to Southdown and TMC.

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