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The Honorable Board of Supervisors
               June 2, 2004
               Page 5





               Shortly thereafter, specimens of the southwestern arroyo toad, a federally endangered
               species, were discovered on the Project site and your Board's hearing was delayed during
               preparation of supplemental biological documentation and recommendations by the federal
               government.  County staff prepared additional environmental documentation reflecting
               additional mitigation measures to address the discovery of the southwestern arroyo toad, and
               a set of Project conditions for your Board's consideration which incorporated, in whole or in
               part, some, but not all, of the project conditions which had been proposed by Santa Clarita and
               other community representatives.  Significantly, County staff did not recommend inclusion of
               measures providing for rail haul, the use of imported water, or the prohibition against any
               reduction of the ridge line on the Project site either because the proposed measure would not
               significantly further reduce project impacts, did not have the legally required nexus, or
               substantially interfered with the amount of federally owned materials that could be mined at
               the site.

               Your Board resumed its public hearing on the Project on November 27, 2001 , at which time
               representatives of our Department of Public Works ("DPW") advised your Board that they had
               concerns regarding the methodology that had been used to analyze traffic impacts on Soledad
               Canyon Road.  Although Cemex representatives testified that those traffic concerns were
               unfounded, your Board continued the public hearing to allow staff to analyze DPW's new traffic
               concerns.  Thereafter, County staff determined that recirculation of the FEIR would be
               necessary to change to the traffic methodology that DPW was contending was more
               appropriate for evaluation of Project impacts on Soledad Canyon Road.

               On January 25, 2002, Cemex filed its lawsuit, contending that the County was inappropriately
               delaying and interfering with the proposed federal mining project, was abusing the CEQA
               process, and had abridged Cemex's constitutional rights.  Cemex specifically contended that
               DPW's change in positions regarding appropriate traffic methodologies was legally and
               factually unfounded.  On February 26, 2002, your Board resumed the public hearing on the
               proposal.  Cemex submitted additional written testimony, oral testimony, and a videotape
                supporting its position that the original traffic methodology was supportable from a traffic
                engineering standpoint and adequately addressed traffic impacts on Soledad Canyon Road.
               Your Board determined however, that since Cemex would not cooperate in the preparation of
                additional environmental documentation to address DPW's traffic concerns, the Project could
               not be approved.  On April 23, 2002, your Board adopted findings indicating that Cemex had
               not satisfied the burden of proof necessary for approval of the Project.









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