Little Missouri Road Crisis Mitigation Project

2018 USDOT BUILD Grant Application Crook County Wyoming

Prepared by Otto D. Schlosser Innovatively improving public safety, providing desperately needed infrastructure for an industry critical to the region, the national economy and the national defense, mitigating a 70 year ongoing public safety crisis and environmental disaster as well as providing relief to a community ravaged by decades of negative externalities.

photo credit John Pierce

Executive Summary Crook County, in northeastern Wyoming, through an innovative public/private partnership with private stakeholders, is seeking a $25 million dollar USDOT BUILD grant to address critical problems with the Little Missouri Road, a rural county road. This road has significant local, regional, national and global impact and is essential to our national defense and the United States Economy. If the pounds of bentonite and trucks that move down this road every year were converted to standard SUVs there would be enough vehicles to make a bumper to bumper line from northeastern Wyoming to Miami, Florida. Every 11 years that would be enough SUVs to circle the earth. The bentonite industry directly generates more than 70 million dollars of revenue annually from product that is hauled down this road and directly employs approximately 300 people. A study by Interstate Engineering (Appendix A) shows the traffic level on the Little Missouri Road to be 7.5 times the level where a road would normally be paved. Road management and policy will be headed by an advisory board which will have industry and resident representation. This board will foster ownership in the management of the road which will ensure efficiency and the longevity of the initial investment. A toll rate sufficient to cover 100% of ongoing maintenance costs will be implemented. Based upon the average production of the last three years the toll is estimated to generate $443,655.10 per year in new non-federal revenue for the maintenance of this road segment. An economic analysis has shown the cost of the toll to the heavy users will be more than offset by efficiency gains and reduced operating costs. This grant will be used for minor realignment, building up and paving 15.5 miles of road, replacing a narrow, 30-year-old bridge and implementing several other safety and efficiency improvements. Our proposal includes non-federal funds contributed by local residents and interested parties (monetary, fill dirt, and right-of-way donations) to match BUILD Grant funds. The NEPA analysis and permitting has begun and the latter is estimated to be completed by October of 2019 so that the project can be bid in November of 2019. Construction will begin early in 2020. By the fall of 2020 we plan to have the entire project completed. Due to the bentonite companies and their employees being traditionally based out of South Dakota, just across the state line, and some Montana bentonite being hauled down this road this project becomes an issue of interstate commerce which complicates the ability to manage and fund this road. As reserves near the plants in Belle Fourche, SD and Colony, WY were exhausted the Little Missouri Road became the most important road in the Bentonite Industry. What was a wagon trail slowly evolved into an industrial bentonite pipeline over the last 70 years. While revenue is collected in Wyoming virtually all of the employees are South Dakota residents so a portion of the tax revenue and nearly all of the political representation is disjointed from this critical road. This project will mitigate the terrible condition of the Little Missouri Road, a rural county road which is a public safety crisis, an environmental disaster, reduces economic competitiveness and creates countless negative externalities. It was built during what is referred to as the pre-law mining period, a time before any regulatory oversight. That era was marked by miners leaving thousands of acres of moonscape wasteland through thoughtless inconsiderate mining practices.

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As a result this road has significant public safety and environmental problems. The bentonite industry has been and is still plagued by that pre-law mentality when it comes to roads. It is a culture of disregard for human safety. The younger management was receptive to this project, but senior management that was trained by pre-law miners refuse to give this project serious consideration. If we are not successful in attaining this grant, at some point in the near future we run the risk of the regulatory agencies shutting down this road as they threatened to do in the 1970’s. That would be devastating to the bentonite industry and would send a supply shock wave throughout the economy. It is a little known fact that the Little Missouri Road is critical not only for the community and the bentonite companies, but also for the county, the state, the region, the nation and the world. Bentonite is so elemental to human existence every human being on the face of the earth besides the untouched tribes of the Amazon has been and is personally impacted in their everyday lives by products made using the Sodium Bentonite hauled down this road. It is often called “the clay of 1,000 uses.” The bentonite that is hauled down the Little Missouri Road is not only an indispensable part of our National Economy it is vital to our National Defense. In service of our nation during WWII the bentonite plants in this area provided the powder for the foundries of the American Economic Machine that cast the roaring rivers of parts for the artillery, jeeps, ships, planes, trucks and tanks that transformed the United States Armed Forces from a small fleet of primitive ships and mounted cavalry into an unstoppable unmatched machine the likes of which the world had never seen. While drives to collect pots, pans, cars, trucks and equipment across the nation were a critical contribution to provide iron for the war effort, the same cannot be said for bentonite. This geographic region is the only place on earth that has Sodium Bentonite and the bentonite that rolls down this road is the highest grade of foundry bentonite in the industry. No other bentonite can produce the quantity and quality of parts. Empirical observation concurs with the finding by the above-referenced study by Interstate Engineering: this road needs to be paved. This road is known for the dust, mud and the generally impassable condition as well as the futility and abject failure of conventional non-paved road surface options. A lifelong local resident, John Pierce, described the options that had been tried for this road as third-world solutions for this kind of traffic. There have been countless unreported accidents and damage to vehicles on the Little Missouri Road directly attributable to the poor condition of the road from rocks thrown by truck tires to vehicles that slide off into the ditch. Two people have died on this road, one because the dust was not controlled and another because the dust control made the road slick. Just a few weeks before this application was submitted a woman died in an accident attributable to bentonite trucks tracking mud onto the paved highway. This BUILD Grant would not only be a good investment of federal money it would be life-changing for the people who live and work in this mess and the countless people who just pass through this area. This community would be extremely appreciative and respectful of receiving the grant as proven by our donations and innovative plan to maintain your investment in our community by employing a public/private partnership to manage this road and the toll to ensure the road section is 100% self-sufficient going forward.

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Table of Contents

Executive Summary ...…………………………………………………………..… 1 Table of Contents ...……………………………………………………..………… 3 Project Description ...………………………………………………...…………… 5

Project History………………………………………………………....………………… 5 Transportation Challenges ………………………………………………………..………7 Project Design and Addressing the Transportation Challenges…………….…….………9 Benefits to The Rural Community…………………………………………………...…...9

Project Location ...……………………………………………..………………… 10 Grand Funds, Sources and Uses of Project Funds ...….………….……………… 10

Project Costs……………………………………..………………………………………10 Project Funds……………………………………………………………….……………10

Merit Criteria...……………………………………...…………………………… 11

Safety……………………………………………….……………………………………11 State of Good Repair …………………………………………………....………………13 Economic Competitiveness……………………………………………………....………14 Environmental Protection…………………………………………………..……………15 Quality of Life…………………………………………………………………....………15 Innovative Technologies…………………………………………………………....……16 Innovative Project Delivery………………………………………………...……………16 Innovative Financing………………………………………………………….…………18

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Partnership…………………………………………………………………….…………18 New Non-Federal Revenue………………………………………………....……………19

Project Readiness ...……………………………………………………………… 20

Technical Feasibility………………………………………………………………..……20 Public Engagement……………………………………………………………………... 20 Project Schedule and Required Approvals……………………………………………... 21 Assessment of Project Risks and Mitigation Strategies………………………….………24

Conclusion ...…………………………………………………………………..… 26 Appendices ...………………………………………………………………….… 27

Appendix A - Interstate Engineering Letter………………………………………...……27 Appendix B - SWCA Permitting Estimate……………………………..…………..……29 Appendix C - Construction Costs Interstate Engineering…………….………….………31 Appendix D - Crash Reports……………………………………………………….……32 Appendix E - Tonnage By Road and By Company……………………….……..………45 Appendix F - Support Letter From Crook County Road and Bridge……………………47 Appendix G - Support Letters With Contribution…………………….…………………48 Appendix H - Crook County Growth & Development Zoning Letter...…………………64 Appendix I - Map of Proposed Project……………………………......…………………65 Appendix J - Road Map of Proposed Project………………..……......…………………66

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Project Description Project History The Little Missouri Road began as a lonely unimproved wagon trail over 100 years ago when this area was first settled. It remained largely unchanged until the 1940’s when the bentonite industry started mining in this area. From the 1940’s through the 1960’s it was just a wider unimproved dirt road with the only improvement being a very narrow bridge. There was also very limited if any dust suppression. As hauling volume increased dust became a major problem. The dust was so heavy and thick that it literally filled the Little Missouri River Valley from peak to peak. In the late 1960’s a driver died from a head-on collision with another truck because the the drivers could not see through the fog-like haze of the dust. Clyde Raber and Merton Foster, residents at that time, were pivotal in ending the dust cloud calamity when they contacted the EPA, who installed monitoring systems. As a result, in the 1970’s a three foot layer of shale (a local low-cost road surface material) was applied to this road and regular road watering began. By the mid 1980’s under that heavy traffic all of the three foot layer of shale had been worn out and eroded away. At that time a layer of gravel was applied and a slightly larger bridge was installed. The engineers soon discovered the new bridge design was insufficient and they had to make modifications. By the mid 90’s the gravel was worn away again. Another layer of gravel was applied and again by the early 2000’s the gravel was gone. For nearly 10 years the road became a no-man’s land. The road surface was long gone and the heavy traffic was wearing away the road base so much that water regularly ran over the road where it had not since the road was built up in the 1970’s. During that time a local resident died in a single vehicle rollover accident on a corner. It was directly attributable to ice caused by dust suppression due to watering the road on a cold dry winter morning. In 2009 a major private/ public cooperative effort was undertaken and was led by local businessman Jim Schlosser. 6 miles of road were built up and 8” of gravel was applied. The road was better than it had ever been, but by 2015 most of that gravel was gone to the point an ambulance could not get down the Little Missouri Road after a light rain. Currently a 4x4 pickup can hardly get down this road after a rain shower. To illustrate the severity of traffic on the Little Missouri Road we will compare the gravel lifespan of Government Canyon Road, an adjoining county road, which has a more typical level of road traffic for a county road. Government Canyon received a similar amount of gravel from the same source nearly 40 years ago and it has only required minimal patching in the last few years. That same amount and type of gravel only lasted 6 years on the Little Missouri Road. In the spring of 2017 local resident and businessman Otto Schlosser began to explore options to address the safety issues and failing road surface. The motivation for spearheading this project was rooted in the impassibility of this road severely impacting his ability to get trucks in and out to haul his bentonite. More importantly he was concerned about his family and community’s lack of access to emergency medical care when the road was wet. The straw that broke the camel’s back was when his wife came home pale and shaking after a near head-on collision between her with a van full of children and a loaded haul truck. She had to drive in the ditch on her side of the road to avoid a head-on collision. Had this gone slightly different there would

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have been funerals for eight of his family members. At the time shale appeared to be the most economical and reasonable option to address the lack of a surface on the road. Schlosser located a shale source and assisted the county in securing access and permitting the pit with the BLM and the DEQ. The permitting process would normally have taken 2-3 years but was completed within months due to Schlosser pushing to expedite the process and paying for the archeology study. Schlosser volunteered approximately $10,000 worth of equipment work every year to mine the shale if the county would hire a contractor to load, haul and lay the shale. Once the new shale pit was permitted and the project was about to be approved, lifelong local resident and rancher John Pierce strongly objected to the shale project because he considered it a third-world solution for a road with this level of traffic. Schlosser was disappointed, but instead of becoming angry he humbly listened to Pierce’s concerns. When Otto Schlosser realized Pierce was correct Schlosser looked for an option to pave the road and hired Interstate Engineering at his own expense to evaluate the possibility of paving the road. Concurrently Schlosser researched funding options both for construction and ongoing maintenance. He was aware the design and ability to maintain the road were critical as other paving projects undertaken by the county had resulted in premature failure and no funding source existed to maintain these roads. State level grants were found, but they were not sufficient for a project of this scale. Schlosser then located the USDOT BUILD Grant and asked Interstate Engineering to do the design work necessary to apply for the grant. Immediately thereafter representatives from both major bentonite companies and the county were invited to participate in a drive-through with the engineering team. It was a fruitful event where many safety and efficiency gains were discussed. Otto Schlosser then conducted an economic analysis based upon a study produced by BenchMark Engineers, P.C., “Paving Decisions for Laramie County Roads”. The economic analysis showed that the paved road would be a net savings to heavy users even after paying the necessary toll to maintain the road. Their savings are found in reduced operating and maintenance costs. Schlosser also requested the maintenance costs from the Wyoming Department of Transportation for US 212 as virtually all of the heavy traffic originating on the Little Missouri Road ends up traveling down US 212 to the bentonite plants in Colony, WY. These empirical costs were employed to verify the results of the economic analysis. The real world costs of US 212 were slightly lower than those projected for the Little Missouri Road. At that point Schlosser directed Interstate Engineering to begin the design work necessary to apply for the grant. The public attended the Crook County Commissioner meeting in June of 2018 regarding the USDOT Build Grant application for the Little Missouri Road Paving Project. The support from the general public was overwhelming for a project in this area. The meeting room that is normally empty was standing room only. None of the residents in attendance were opposed to the project and most were ecstatic about the possibility of having a safe, passable road. At that meeting John Pierce offered a $10,000 contribution to the project if we could secure this grant. The County Clerk Linda Fritz asked very pertinent and practical questions regarding how the

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project and advisory board would be administered and how they would work with the county. After the meeting County Attorney Joseph Barron mentioned how another Wyoming county used weight limits and permits to address the wind energy industry damaging county roads. At the prior Commissioner meeting in May the young man who is the heir apparent for the next generation of leadership at the local Halliburton operation was excited about the prospect of paving the road and discussed it at great length in the days and weeks following the meeting. He and two other junior members of Halliburton rode along for the drive-through mentioned above. The next generation’s forward-thinking positive attitude was a refreshing break from the longer serving management who were trained in the twilight of pre-law mining by people who gave little if any consideration to the environment and the community. Unfortunately the older narrow-minded management opposed this project just like those who trained them opposed the original paving project for the Little Missouri Road back in the 1970’s when they also opposed the implementation of commonsense mining regulations. None of those decisions were based on best management practices nor on sound business practices, but were rooted in the tradition/habit of just getting it done without any regard to the environment nor societal costs. The bentonite industry is always resistant to change, but once they get accustomed to this new system they will be as proud of it as their reclamation required by the mining laws. Transportation Challenges Nearly all of the challenges are directly attributable to the Little Missouri Road being a dirt road because of the lack of a road surface that can survive this type of traffic. As you have seen in the Interstate Engineering study and project history this road has a level of traffic that requires a paved surface. The word “mud” does not do justice to the material referred to as mud. This is a combination of unique materials that bind together, stick and are extremely slick. An imperceivable layer on the road is more like black ice than typical mud. That’s why it’s hauled all over the world for commercial purposes. The key transportation challenges including negative externalities as described by the stakeholders are as follows.

● Two deaths directly attributable to dust suppression. The truck driver in the most recent case where watering caused the fatal accident was devastated by the tragedy.

● Just a few weeks before this application was submitted a woman died in an accident attributable to bentonite trucks tracking mud onto the paved highway.

● Conventional non-pavement road surface’s lifespan is too short. ● Dangerous highway crossing at Wyoming State Highway 112. ● Unsafe merging and turning with highway traffic on US Highway 212. ● Inability of bentonite haul trucks to have advanced notice of conditions that may cause

mud tracking. ● Insufficient visibility because of the lack of mowable side slopes is hazardous for

vehicles and wildlife. ● Reduced visibility because of fugitive dust emissions. ● Old, narrow one-lane bridge that is a congestion point and a point of potential collision

hazard. ● Trucks from feeder roads packing mud onto the Little Missouri Road.

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● The inability of emergency service vehicles to service the community. An ambulance would become stuck in the middle of the road which could cause the death of a critically injured person. A fire truck could not get to a home that was burning down.

● The residents and businesses are unable to travel whenever there is moisture. ● Vehicles including feed trucks and cattle trucks rolling over after sliding off the road. ● Mud and rocks falling off of vehicles onto the highway. Flying rocks bedded in mud

built up on vehicles are potentially damaging to highway traffic. Large amounts of mud being tracked onto two highways create dangerous and potentially fatal conditions for highway traffic, including both slick conditions and chunks the size of footballs. Sometimes it is so bad the highway looks like a dirt road.

● Mud sticking to the underside of vehicles for hundreds of miles, through multiple car washes.

● Mud making the trucks too heavy to haul their loads. At Wyoming Sunmade, they at times wash 2,000 lbs of mud off a truck.

● Mud obscuring vehicle lights, creating a safety hazard. ● Vehicles sliding off the road often hit or drive through the fence because the fences are so

close to the road so there is no clear zone. ● The bentonite companies are not able to haul enough bentonite into the plants especially

during wet seasons. ● Bentonite truck drivers do not get regular paychecks because they cannot work when it is

wet. ● Bentonite truck drivers have to work Saturdays and Sundays to make up for the road

being impassable during the regular work week. ● The community loses the normally quiet and safe weekend relief from the heavy

industrial activity in this area. ● Some people prefer to only drive down this road when the bentonite trucks are not

hauling and the road is not muddy. During wet periods that might not happen for weeks on end. As a result some people have difficulty getting groceries, going to doctor visits, conducting their business and often miss special events like birthday parties.

● Losing critical transportation partners and vendors who refuse to travel on this road. ● Vehicles getting stuck in the middle of the road ● Two trips through the $12 car wash not getting the car clean ● Vehicle shaking because of mud being packed in the wheels. ● Excessive mud accumulation on tires causing damage to vehicle fender liners ● Getting mud on your clothes when you get out of your muddy vehicle. ● Having to load and unload kids by hand so they don’t get covered in mud. ● Mud falling off vehicles creating dust problems and runoff on paved roads. ● Slick mud falling off in business parking lots creating a slip hazard. ● 4 scoop shovels full of mud contaminating your shale or gravel parking spot at home

every time it rains or mud falling off in paved parking lots. ● Driving miles down the road with a tractor to go pull out a family member, neighbor or

truck that is stuck, typically in the middle of the night ● US Mail, UPS and Fedex not being able to deliver packages. ● Paying cancellation fees because a truck could not get down the road.

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● Windshields broken by gravel thrown by truck tires because the gravel road custom of slowing down when you meet another vehicle is not observed by haul trucks

● Tires being cut off by sharp shale and sharp rocks. ● Rapid depreciation on businesses’ and residents’ vehicles caused by operating on this

type of road. ● Stress and anxiety to road users caused by the poor road conditions

Project Design and Addressing the Transportation Challenges Our primary goal when redesigning the road was safety. Paving the road will address the vast majority of the problems listed above. We generally utilized the existing centerline, but where none of the existing road was built to spec we did not hesitate to make realignments when necessary or when it facilitated a more streamlined design and improved visibility.

● The realignment facilitated raising the speed limit to 65 mph which will reduce travel times for the public and reduce hauling costs and increase production for the bentonite companies. Where most of the traffic on this road is heavy haul trucks the radius of the corners were increased to reduce the likelihood of accidents to increase visibility and and to reduce stress on the vehicles, drivers, and the road.

● Dangerous untraversable shoulders will be replaced with gradual safe slopes. ● The fence and all obstructions will be moved back to acceptable distances to establish

reasonable clear zones. ● Paving the Little Missouri Road will make the road passable for emergency vehicles as

well as the public and the bentonite industry. It will also eliminate the mud tracked on to the US Highways.

● Paving the feeder roads 1,000 feet back will reduce the amount of mud tracked onto the Little Missouri Road by giving the haul truck tires a chance to clean off before they reach the Little Missouri Road.

● The new bridge adequate for two-way traffic will reduce the likelihood of collision and failure and increase efficiency.

● Traffic sensing stop light and camera at the Wyoming 112 crossing will keep all drivers more aware and increase bentonite truck efficiency.

● A sweeping acceleration lane with a yield sign onto US 212 will aid trucks in merging with traffic and increase efficiency

● A deceleration turn lane off of US 212 will reduce congestion, increase efficiency and reduce the likelihood of accidents.

● Installation of a weather monitoring station along the road so that trucks will not be sent out when conditions exist that may cause mud tracking.

Benefits to The Rural Community No other project you are considering would be as appreciated or as life-changing for a rural community. The heavy industrial activity on the Little Missouri Road has made life nearly unlivable for the residents. Other rural roads may see significant activity, but this road is in a league of its own. Nothing illustrates that better than if the pounds of bentonite and trucks that move down this road every year were converted to standard SUVs there would be enough vehicles to make a bumper to bumper line from northeastern Wyoming to Miami Florida. Every 11 years that would be enough SUVs to circle the earth.

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Life in this area is more like living in a third world mine in a former Soviet Bloc State than a first world country. Within the last 20 years three people have died from bentonite related road accidents in this area. In the preceding 50 years only one person died from this activity. Clyde Raber knew back in the 1970’s that this road needed to be paved, but the bentonite companies actively worked to shut down that effort. For another 40 years this community has suffered under the cloud of a dangerous impassable road. Many lifelong residents have become resigned to this situation and saw no hope of ever being delivered from this crisis. A common sentiment among the community is that this is a bentonite haul road and that nobody can do anything about it. Just as telling are the words of a new resident who commented she was thinking about moving back to town and another who rented a house along the road and shortly moved out after she realized how terrible life was here because of the condition of the Little Missouri Road. When the possibility of a modern safe paved road was again introduced the whole community’s spirit was lifted. People who were once considered unreasonable and adversarial have made sensible contributions to the discussion and offered contributions to back the project. The community is not only engaged, but leading the effort and willing to donate to make it happen.

Project Location The project is located in the northeast corner of Crook County, in the northeast corner of Wyoming. It is south of Alzada, Montana. The section of road to be paved begins at US Highway 212, crosses State Highway 112, and ends 3,435 feet west of Government Canyon Road, an adjoining county road. It commences at 44.968414, -104.332630 and ends at 44.936727, -104.620937. For Maps please see Appendix I and J. Because of the length of this road segment it is not possible to present a clear detailed map in this application. The centerline can be downloaded from the Crook County Wyoming Road and Bridge website “Little Missouri Road Crisis Mitigation Project” page and is viewable on Google Earth Pro.

Grant Funds, Sources and Uses of Project Funds

Project Costs ● Permitting $187,000 Appendix B ● Construction costs $26,858,525 Appendix C ● Additional Right-of-Way $562,464 (Wyoming Office of State Lands and Investment

Price) ● Total $27,607,989

Project Funds ● Private Contributions $826,036.66 (see letters of support Appendix G)

○ Monetary $149,000 ■ Jim and Beverly Schlosser up to $100,000 available for initial permitting. ■ Otto Schlosser up to $25,000 available for initial permitting. ■ John Pierce $10,000 available after grant approval. ■ Robert & Bredow Thompson $5,000 available after grant approval. ■ Wyoming Sunmade LLC. $5,000 available after grant approval

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■ Kathy Schlosser $1,000 available after grant approval. ■ Chester Schlosser $1,000 available after grant approval. ■ Randy Sartorius $1,000 available after grant approval. ■ Ted Williams $1,000 available after grant approval.

○ Fill dirt $375,000 donation 1.5 million yards @ 25 cents per yard (Wyoming Office of State Lands and Investment Price)

■ Lloyd Raber ■ Johnie Ridinger ■ Jacquelyn Forbes Kearns ■ Ben Garman ■ Jack Foster ■ John Pierce

○ Additional right-of-way $1.35 per rod per foot of additional width (Wyoming Office of State Lands and Investment Value) $302,036.66

■ Lloyd Raber $85,095.36 ■ Johnie Ridinger $78,744.96 ■ Jacquelyn Forbes Kearns $23,587.20 ■ Jack Foster $61,689.90 ■ John Pierce $52,919.24

● County ○ Funds generated by the toll prior to project completion estimated $887,310.20

● State ○ We will apply for the $1 Million Wyoming DOT Industrial Road Program Grant

● Federal ○ $25 Million USDOT Build Grant

● Total $27,713,343.86

Other consideration ○ Additional acres for wetlands

■ Jack Foster 2 acres ■ John Pierce 10 acres ■ Jacquelyn Forbes Kearns 20 acres

○ BLM free-use permit for shale $120,000 contribution 200,000 yards @ 60 cents per yard (Wyoming Office of State Lands and Investment Price) This may result in actual project savings of approximately $2.5 million by significantly reducing road base costs.

Merit Criteria Safety There is a culture of disregard for human safety in the bentonite industry regarding roads and bentonite hauling. Otto Schlosser, an up-and-coming bentonite producer, was concerned about the condition of the Little Missouri Road and mud being tracked on the highway. When he voiced his concern to the local Halliburton Mine Manager that manager told Schlosser, “We have a difference of opinion about what constitutes a good road.” Less than a year later a fatal accident occurred because of mud being tracked on the highway. Colloid’s position has always

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been that they do not need the road when it is wet. If we are awarded this grant it will give us a mandate to change that culture of disregard for human safety. This road is at the heart of that culture. Once the Little Missouri Road is brought up to reasonable standards it will raise the bar for all bentonite hauling activity in this area. Essentially we will experience spillover safety benefits that will be greater than those enjoyed on this road itself. Two people have died on this road, one because the dust was not controlled in the 1960’s and another because the dust control made the road slick in 2001. As mentioned in the paragraph above, just a few weeks before this application was submitted a woman died in an accident attributable to bentonite trucks tracking mud onto the paved highway. If left unaddressed the condition of this road quite clearly will result in additional fatalities in the next 20 years. Many of the safety benefits can be found in the “Project design and addressing the transportation challenges sections” of this application. As seen in the project description currently the Little Missouri Road does not meet basic safety standards, most fundamentally the mud surface is not only a danger to users of this road, but additionally due to vast amounts of mud being tracked onto two highways the Little Missouri Road is a danger to traffic on two highways. Paving the Little Missouri Road will virtually eliminate the possibility of mud-related accidents on the highway. Paving 1,000 feet of the access roads will greatly reduce the amount of mud tracked onto the Little Missouri Road. A considerable number of accidents on the Little Missouri Road go unreported as there are many single vehicle accidents that involve sliding off the slick road or hitting wildlife that emerges from the uneven rough shoulders that are difficult to mow. Currently there are virtually no clear zones for errant vehicles. Any error or slick spot can cause vehicles to slide through a fence, into a dangerous washout or fall off a deadly dirt embankment. Additionally there is no escape route for vehicles trying to avoid head-on collisions. As you can see in Appendix D which contains the accident report there have been numerous accidents on this road. I would also like you to consider the conditions of this road are so bad the road has been assumed to be a no man’s land where it is every man for himself for the last 70 years. Single vehicle accidents are seldom if ever reported unless there is a serious injury and even serious accidents are often not reported. Empirical observation has shown the heavy use of this road segment emits approximately 9,847 tons per year of road material as fugitive dust or runoff. Heavy layers of sediment are not obvious in the road ditch, therefore assuming 75% of the road material, 7,385 tons, is leaving as dust, is a conservative estimate. Based upon that estimate 25% of this road material, 3,692.5 tons, would leave as PM10. 15% of PM10 dust emission off of an unpaved 1

road are PM2.5 according to a study sponsored by NSSGA. Therefore this 15.5 miles of 2

unpaved road surface is emitting 553.88 of PM2.5 emissions. Common road materials exhibit high levels of silica. The fugitive dust harbors finely ground silica. Silica dust is considered a hazardous material. As you can see from one of the cover photos, workers, the general public, 3

residents and livestock have significant respiratory exposure to silica dust. Respiratory exposure

1 https://www.arb.ca.gov/pm/fugitivedust_large.pdf 2 https://www3.epa.gov/ttnchie1/conference/ei14/session7/hayden.pdf 3 https://www.cancer.org/cancer/cancer-causes/general-info/known-and-probable-human-carcinogens

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to silica dust causes silicosis which has similar effects on the respiratory system as asbestos. 4

Paving the road would virtually eliminate this exposure. The traffic-sensing light and red light camera will increase traffic awareness and reduce the incidences of accidents. Several accidents have occurred at this intersection. A potential release of hazardous materials could occur at this intersection from a highway vehicle hitting one of the fuel trucks that deliver to this area several time a week. A much more in-depth safety discussion can be found in the “reduced instances of accidents” section of the Benefit Cost Analysis. State of Good Repair

1. For the vast majority of the last 70 years this road has been nearly impassable when there is any moisture. All road surfaces employed have failed under this kind of traffic. As shown by the bentonite trucks’ use of HWY 212, pavement is the only reasonable solution to keep the Little Missouri Road in a state of good repair. The failure to improve the Little Missouri Road has resulted in increased pressure on the two adjoining county roads (Goldie Divide and Government Canyon Road) in adverse weather.

2. If the Little Missouri Road is not brought into a state of good repair with a paved surface the public will continue struggling with the transportation challenges that begin on page 7. If this road remains unimproved the pressure on the two adjoining roads will spread this problem like cancer. The use of the adjoining roads under adverse weather is a significant threat to the greater rural community and will greatly amplify the magnitude of the problem as the population is considerably more dense on both of these adjoining roads. The increased traffic during periods of moisture takes a significant toll on these adjoining roads not designed for this level and type of traffic.

3. The new Little Missouri road design accounted for the type of use the road will be subject to, including super loads that would not be permitted for a standard US Highway because heavy equipment is often driven from pit to pit down this road. The advisory board will ensure the road is properly managed including ensuring the toll system is collecting enough revenue to maintain the paved surface of the Little Missouri Road in a good state of repair.

4. A toll rate sufficient to cover 100% of ongoing maintenance costs will be implemented. Based upon the average bentonite production data for the last three years the toll is estimated to generate $443,655.10 per year in new non-federal revenue for the maintenance of this road segment. This steady stream of revenue will ensure preventative maintenance can be carried out in a timely manner which will reduce overall life-cycle costs.

5. This project has no effect on border security. 6. As you can see in points three and four above we have plans to ensure proper asset

management via the advisory board and the revenue to carry out the necessary maintenance. This rural infrastructure project will be kept in a state of good repair that will support commerce and permit economic growth.

4 https://www.atsjournals.org/doi/full/10.1164/ajrccm.157.5.9707141

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Economic Competitiveness

1. This paving project will dramatically decrease transportation costs, improve access and reduce commute times. When it is wet many residents are only able to drive 20 mph or slower on this road if they can traverse it at all. BenchMark Engineers, P.C., “Paving Decisions for Laramie County Roads” shows the operational costs to be more than 1.5 times higher for trucks when hauling on a gravel road versus a paved road. The 5

alignment and ability to raise the speed limit from 45 mph to 65 mph will boost hauling efficiency approximately 40% on this section of road. The traffic-sensing stop light and sweeping onramp will also boost hauling efficiency. Paving will eliminate the cost of negative externalities of the bentonite hauling borne by the community listed in the Transportation Challenges section beginning on page 7. While those costs are difficult to quantify they are real and they are significant, the greatest of which is the rural community has no access whenever there is any moisture. Not having all-weather access to job centers is an impediment to rural residents attaining jobs. Paving will give rural residents all-weather access to job centers.

2. As you can see in the attached economic analysis $274,000 in man hours and equipment work are spent maintaining the unpaved surface. The paved surface will eliminate this cost. This project will ensure carriers are able to deliver packages and freight especially critical overnight packages. Rural producers have struggled to get feed hauled down this road for their livestock at the most critical times of year. Trucks often have to be delayed or cancelled because the road is impassable. Paving the road will reduce downtime for bentonite company employees who are currently nearly always unable to work in the presence of moisture sometimes for days on end.

3. The dust and runoff emitted from the unpaved road is detrimental to the land and the livestock and crops that grow on it. Whenever there is moisture tens of millions of dollars of trucks and heavy equipment set idle as do the laborers who drive and operate them.

4. Otto Schlosser, the general manager of a small but rapidly growing bentonite company and a ranching operation, looking to expand into a feedlot operation, has indicated that his ability to employ more people has been severely impaired by lack of a reliable all-weather access road. Local rancher and businessman John Pierce has indicated that the condition of the road has impaired his hunting business and completely stopped his ability to offer lodging to motorcyclists during the summer, most critically during the lucrative annual Sturgis Motorcycle Rally. All landowners have reported adverse impacts to their businesses from dust and mud which include livestock loss, reduced livestock weight, reduced grass and reduced crops as well as mud damaging vehicles.

5. The United States is not only the king of sodium bentonite we are the only source of commercial quality sodium bentonite in the entire world and all of that bentonite is located in northeastern Wyoming and the surrounding area. Of the handful of producers the two largest players in the industry, Halliburton and MTI, have significant reserves in this area with the Colony plant of Halliburton nearly exclusively relying upon bentonite

5 https://www.plancheyenne.org/wp-content/uploads/2018/02/CountyRoadPlan.pdf

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hauled down this road. Having a reliable road to get this mineral to market is critical to the United States’ economic competitiveness. If this road is not paved soon the regulatory agencies will possibly close this road down to bentonite company traffic as they have threatened to do in the past. This could put these companies out of business which would devastate the local economy and send a supply shock through significant portions of the national and world economies.

Environmental Protection The current state of the Little Missouri Road is an environmental disaster akin to those problems that were mitigated in the rest of the urban parts of the country many decades if not over a century ago. This project and the USDOT BUILD Grant are the only feasible means to mitigate the environmental impact in this rural community. A federal grant is our only hope. Please see photos and videos available on the Crook County Wyoming Road and Bridge website “Little Missouri Road Crisis Mitigation Project” page to see the environmental impact. Words cannot do justice in describing what the photos and video will show.

1. As referenced in point 1 of the economic competitiveness section on page 11 operational costs are 1.5 times higher for the trucks hauling on this gravel road than they would be on a paved road. Most of that $554,568.88 found in the BCA would be divided between reduced fuel consumption and the trucks and trailers lasting longer, both of which would reduce energy consumption.

2. Paving would eliminate the empirically observed road surface emissions which are estimated to be 9,847 tons per year, which is leaving either as fugitive dust or runoff. Both of those are detrimental to air and water quality and part of the fugitive road material ends up in wetlands and the Little Missouri and Belle Fourche Rivers. Additionally much of the water used for dust suppression on the road is taken from bentonite pits which are known to have very low quality water contaminated with high levels of minerals making it unsuitable for livestock and/or irrigation use. After paving no more of this water will be dumped on the road and it will not enter wetlands. The last gravel applied to this road came from a pit that turned 10 acres of productive farm ground in a creek bed into a gravel pit. Using shale for this road would result in the loss of approximately 2 acres per year of century-old pine trees forest and that habitat. The current steep grades in the ditches are unable to be mowed which is dangerous for wildlife in the area including the threatened sage grouse.

3. Landowners along the road have indicated their willingness to allow for the construction of 32 acres of wetland above and beyond those required for statutory mitigation. The landowners want to ensure the environment is not only protected, but also enhanced. They want to increase wildlife habitat and help with stormwater mitigation.

Quality of Life As mentioned earlier in this application emigration has been considered and has occurred specifically because of the significant negative impacts on the quality of life resulting from the condition of the Little Missouri Road. Paving this road will have a significant positive impact on the quality of life for the rural community.

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1. The weather dictates all transportation decisions. In the presence of moisture residents have no transportation options as this road is impassable. In the winter residents hope for freezing temperatures and the frost that accompanies sub-freezing temperatures so they can drive on ice rather than get stuck in the mud. In the spring travel becomes very difficult because of considerable moisture and moderate temperatures so the road will neither freeze nor dry up. Sometimes for weeks on end the road is only just passable for a few days here and there. In the summer the only option is to wait for hours and sometimes for days for the road to dry out. This project would greatly increase the freedom of transportation for this rural community.

2. Currently rural residents are unable to attain essential services for days and sometimes over a week. They have reported medical supplies not being able to be delivered, not being able to travel to doctors, pharmacies, grocery stores, businesses for critical supplies or parts, feed sources for livestock, banks, law offices and religious services or ceremonies.

3. Whenever it rains or after snow melts emergency service vehicles cannot get down this road. At times parts of this road are only traversable with a tractor. Air ambulance would be the only means of access to medical services for a critically injured person, but an air ambulance cannot be called in by the general public and a qualified person may not be able to be on the scene for hours if at all. Therefore at times this rural community has no access to either emergency or preventative medical care. Having a paved road would give this rural community all-season access to medical care. As seen in the economic competitiveness section rural residents not having access to job centers has been noted.

Innovative Technologies As was mentioned in the project design section a traffic sensing stop light as well as a traffic camera to monitor red light violations will be installed where the Little Missouri Road crosses Wyoming 112 to dynamically manage the flow of traffic. Failure to fully stop at this intersection is a common problem and the traffic light and camera should mitigate that hazard. This will require coordination with the Wyoming Department of Transportation. WYDOT has said they would like to do a traffic study to ensure this is an appropriate course of action. Traffic counters will be set up to demonstrate relative traffic level to determine if and how traffic flow at this intersection should be handled. This light would likely be installed in 2020 which should be more than sufficient time to do the study. The weather monitoring station on the Little Missouri Road should not require permitting as it will likely be set up at an existing location where fiber and electricity already exist such as a resident’s building or a phone company fiber pedestal. Due to the great distances travelled by people that work in this area, if there is a weather incident that precludes people from working, they could identify it and avoid unnecessary travel. Innovative Project Delivery As you have seen in the project history and will see in the project schedule, getting this rural road back in shape has been an innovative dynamic process from the beginning.

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● Volunteerism by Otto Schlosser crafting the concept, coordinating and applying for this grant as well as the Schlosser family hiring Interstate Engineering at their own expense was critical in meeting the application deadline as was involvement by other community members. The planning, design work and application were completed in less than two months by Otto Schlosser. Additionally he began the NEPA process by making contact with the potential regulatory agencies and has arranged for a consulting firm to complete the NEPA process and environmental permitting to ensure work can begin quickly upon the grant being awarded.

● Resident and Rancher John Pierce provided the photos and much of the background information for this project as well as presenting at the commissioners’ meeting, speaking to potential contractors regarding technical feasibility and was and is a strong advocate for this project. He coordinated through the process and when the deadline was near he closed two of the last minute deals to secure critical right-of-way donations.

● Rancher and Resident Lloyd Raber made a critical contribution to framing the traffic in a graspable manner that helped the community realize the road needed to be paved.

● Through rational discourse rancher Ben Garman helped bring onboard a landowner who initially had reservations about the project. Garman also located an area on his property which is nearly exactly in the middle of this project that would be an appropriate location for the construction yard and batch plant. He offered to donate the use of this area for the duration of construction.

● Landowner Jack Foster was instrumental in working with another landowner to ensure the momentum on this project was not lost.

● Rancher and local community leader Johnie Ridinger was instrumental in speaking with landowners about this project.

● Resident and businessman Jim Schlosser has coordinated with local landowners regarding the project and led the drive to collect letters of support for this project.

● Jacquelyn Forbes Kearns, a landowner who resides out of the state, made a very generous donation to the community at a critical time that was essential in obtaining donations from other landowners.

We are confident environmental permitting will be timely and consistent with the spirit of the environmental laws so that the work on the road can begin quickly. The standard environmental timeline for this project is manageable, but we believe we can reduce it further. Just last year we were able to reduce the shale pit permitting for this road from years to months, by showing the BLM field office the urgent need for the shale pit and asking them for their help in expediting approval. Through cooperation and coordination we were able to use environmental data from several bentonite pits in the immediate area to reduce duplicative field work while still ensuring the environment was protected and that permitting moved quickly. When a government archeologist could not get to the project for months Otto Schlosser hired a private archeologist. That shale will be available as a potential sub base to reduce costs and ensure the longevity of the road. Crook County Road and Bridge Foreman Morgan Ellsbury was instrumental in helping to expedite this permitting process both with the BLM and the Department of Environmental Quality. Misty Nuzum of the Crook County Road and Bridge Department researched and

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attained various land ownership documents which were essential in determining land and mineral ownership. The Crook County Commissioners pointed out that in the past, paved road designs were not sufficient, and there was no funding source to maintain them. They indicated that we need to build a sufficient road and have a revenue source to maintain it. For the grant application, County Clerk Linda Fritz was very engaged, identifying potential delays, management problems, and forms that were necessary for the grant application, and has been a key member in the application process, ensuring all the i’s were dotted and the t’s were crossed. County Attorney Joe Baron researched and investigated issues regarding the toll collection. The same methodology used in the permitting of the shale pit will be employed in the greater road project to ensure on time or early delivery of permits. Regulators are reasonable people and if you politely explain the urgency of the situation to them they will give you guidance and do all that they can within the law to help. The potential impacts of mitigating this disaster are less than the ongoing impact of this road especially if a delay might cause additional loss of a human life. We can show through a considerate, thoughtful, construction plan that this rural community and the environment will be better off after this project. As mentioned earlier extensive environmental studies and permitting along this road have been conducted for various bentonite and shale pits. We have already begun employing that existing data to ensure to the greatest extent possible that all potential environmental issues are known upfront so that permitting moves quickly and to ensure we can avoid any unforeseen delays. This project has been and will continue to be a grassroots effort as will the long-term operation and maintenance via the advisory board. The ownership mentality present in this project will ensure no other project of this scale will be as efficiently or quickly delivered from inception to completion and ensure proper long-term maintenance. Innovative Financing As mentioned in the previous section of this application this was a grassroots effort where several individuals stepped up to bring this rural community together. The rural community was told that donations to this project would increase our odds of being awarded a grant. Individuals lined up to make significant donations to fund this project including monetary, right-of-way, fill dirt and land for wetland creation. As you can see in point 4 of the State of Good Repair section maintenance of this road will be self-funded via the toll. Partnership As seen in earlier parts of the application for this rural county road this project has strong public private partnership between the county, rural business owners and rural residents. From the beginning of this crisis mitigation project an effort originated in the private sector to formulate a reasonable cooperative plan among the bentonite companies (Halliburton, MTI and Schlosser) and the county. When that plan began to take shape community input was taken into consideration. As the process evolved the two large bentonite companies (Halliburton and MTI) shirked their social responsibility and refused to meaningfully participate in any solution

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especially a real lasting solution even after they were shown that paving would in fact save them money. They preferred to let the rural community and environment continue to bear their hauling costs through negative externalities. To illustrate how little these two companies were willing to do for this crisis mitigation project, Halliburton, the main road user, refused to make a $20,000 contribution and MTI, the second largest road user, refused to contribute $10,000 to putting shale on the road just to get it passable. Theses contribution requests were accompanied by the promise that Crook County would match any contribution dollar for dollar. This was after Schlosser, who represents 1% of the bentonite hauled down the road, had put over $18,000 and countless hours into the project. In response smaller stakeholders (rural residents and business owners) ravaged by the negative externalities of bentonite hauling began to step up to offer more support for this project as you can see in the public engagement section. Due to the proximity of the Wyoming-South Dakota state line this project has an impact on interstate commerce and the out of state public beneficiaries of this commerce support this grant application. Butte County, South Dakota and Belle Fourche, SD, another rural community, have penned letters of support for this project because much of the economic activity generated by the bentonite industry ultimately ends up in Butte County and Belle Fourche. The bentonite companies’ Wyoming plants are the largest employer of Butte County and Belle Fourche residents and many of the support companies are based in that area. These bentonite company employees and vendors pay property tax on their homes and support local businesses though their purchases. One of the most compelling aspects of this application is the public/private partnership through the advisory board and the toll system that will make the road surface 100% self sufficient, by generating an estimated $443,655.10 per year in new non-federal revenue. The board will have industry and resident representation. Otto Schlosser will represent industry and will have a permanent seat. The two other seats will be residents who live along the road segment or landowners along the road. The latter two will be appointed and serve at the will of the County Commissioners. This advisory board will manage road policy including construction, maintenance and setting the toll rate which will ensure accountability, efficiency and the longevity of the initial investment by entrusting oversight to the most invested and affected stakeholders. New Non-Federal Revenue Currently the road segment generates no revenue and due to fiscal constraints caused by falling revenue and the futility of past improvements no expenditure of county funds is planned for this road. Through a system of weight limits and permits a toll will be implemented that will generate an estimated $443,655.10 per year in new non-federal revenue for the purposes of maintenance. Over the next 10 years we anticipate this toll system will generate $4,436,551 in additional revenue and will continue in perpetuity and may be increased to ensure sufficient revenue is collected to maintain the road. Class C and Class M vehicles will be exempt. All other users will be obligated to apply for a permit which requires paying a 6 cent per ton mile toll on their or their trucks’ payload for any

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travel on the paved segment. All other heavy vehicles that do not carry a payload will pay 6 cents per ton mile on 25% of their gross weight for their miles traveled on the paved segment. Nearly all of the heavy traffic on the Little Missouri Road are bentonite haul trucks. That traffic is traceable via mineral severance tax reports filed with the Wyoming Department of Revenue. Each bentonite producer files a report which includes the legal land description and tons hauled from that area, see Appendix E. This information can be used to track actual road usage and to calculate toll charges for the purposes of invoices. Bentonite companies or their contractors that do not abide by the permits and the toll will be prohibited from using the road. A hearing at the August 2018 Crook County Commissioner Meeting will be held and all interested parties will be invited. The advisory board will be created and members will be appointed at that meeting. The advisory board will work with the Crook County Commissioners, County Road and Bridge Foreman, Morgan Ellsbury, County Clerk, Linda Fritz, County Treasurer, Mary Kuhl, and County Attorney, Joe Baron, to structure and implement the weight limits and toll system. The toll will go into effect October 1st, 2018. Users will be required to self-report usage quarterly and must send payment to the county within 30 days from the end of the quarter. If a user fails to report quarterly they will be assessed a 12.5% convenience fee for the advisory board calculating their usage, being billed and paying annually. Any user who files an inaccurate usage report will be billed twice the standard toll rate for any discrepancy in their favor.

Project Readiness Technical Feasibility This is a fairly typical road project that does not present any significant challenges. The timeline is aggressive but achievable. The environmental contractors we consulted felt the permitting timeline was reasonable and the construction contractors who reviewed the project indicated it was not a complex project and could comfortably be completed within one season. Public Engagement This is a grassroots effort conceived and led by the public. Please see the innovative project delivery section of this application for additional information.

● Considerable thought and engagement has occurred on a personal and networking basis in the community regarding all aspects of the project.

● Resident and Rancher/Business owner John Pierce objected to conventional road surfaces. He helped prepare for and present at the County Commissioner Meeting as well as offering to donate $10,000 cash, fill dirt, additional right-of-way, and an area to build wetlands.

● Resident and Rancher Jim Maupin expressed concerns regarding the existing bridge being a choke point and that some of the options being considered to replace it were not appropriate. A higher, longer bridge appropriate for the flow will be installed. Maupin also expressed a desire for alignment changes to be arranged to minimize isolating a piece of his land. The majority of the realignment was done earlier in the “S” curve so the change would be where ownership is the same on both sides.

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● Resident and Rancher Johnie Ridinger requested the fence on the “S” corners in his property be properly built so that he could stretch his fence without pulling it over which was a problem created the last time road work was done on his property. He also asked that wetland creation be avoided on his property because it would be a problem for his sheep.

● Resident George Ridinger humbly requested that if possible a few power poles be relocated so that the additional width required would not put the road any closer to his house nor disturb sound deadening trees because of noise concerns. In response the centerline was adjusted and several rows of evergreen trees will be planted during construction to help with noise suppression.

● The centerline of the road was moved to avoid the disturbance of Earl Busenitz’s fields. ● Landowner Jack Foster offered to have the centerline moved towards his property and

offered to donate the additional right-of-way to minimize the impact to another landowner. He requested that the hill that leads to his buildings be used for fill dirt as it was a good area to get fill and he would end up with a better road as a byproduct.

● Resident and Rancher Lloyd Raber requested hills be cut out on his property and asked that one dugout for livestock watering be created if possible. This concept will be utilized to the greatest extent possible along the entire road.

● Landower Jacquelyn Forbes Kearns requested a crossing for livestock and wildlife on her property after noting the heavy traffic and the intersection of two major roads did not afford that opportunity. She specifically requested wetlands be placed on her property to increase wildlife habitat and to help manage stormwater runoff.

Project Schedule and Required Approvals ● May 2018

○ The project concept was presented ○ Legal options were evaluated for enforcing the toll to maintain the road.

● June 2018 ○ The centerline was completed ○ Landowners and the community were made aware of this project. ○ The public attended a Commissioner Meeting where the project was discussed. ○ Relevant parties to NEPA and permitting were determined ○ The following agencies were contacted regarding NEPA and permitting

■ Wyoming Department of Transportation ● Expressed limited involvement and indicated FHWA would be the

lead on NEPA and permitting. It was noted that the Army Corp permitting would be the most intensive and time consuming.

■ Army Corp of Engineers ● Several phone calls and a review of satellite imagery showed

several potential points that will require study for delineation and permitting. If individual permits are necessary the approval period would be 120 days after submission after studies are completed.

■ Wyoming Department of Environmental Quality ● Land Quality did not believe they would have any involvement. ● Water Quality will require a stormwater permit.

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● Air quality will require permitting of the hotmix plant and any crushing or screening equipment, but the road project itself will not require permitting. Approval should be complete within 4 months of application.

■ Newcastle Field office of the Bureau of Land Management ● Indicated the agreement to widen the right-of-way could be

accomplished within approximately 2 months. ■ Wyoming Game and Fish

● Indicated a 30 day initial review period would be necessary. The main area of concern in this part of the state is sage grouse leks. Due to the sustained heavy activity and lack of habitat we do not expect any problems.

■ US Fish and Wildlife ● Indicated a 30 day initial review period would be necessary. The

main areas of concern in this part of the state are disturbing long- eared bat habitat during June and July and impacts on wetlands species. Multiple consultants have indicated multi-year studies should not be required as this area is not conducive to the threatened plant species which require those levels of evaluation. A preliminary analysis will be done in 2018 to confirm this assumption and to check for the plants. If any of these plants are found 2018 would be year one and 2019 would be year two. This preemptive action will ensure the project will not be delayed.

● July 2018 ○ The design work and cost estimate were completed ○ The Federal Highway administration was contacted regarding NEPA and

permitting. A suggestion was made to hire a consultant familiar with the NEPA process.

○ SWCA environmental consultants were contacted regarding NEPA and permitting. They indicated NEPA environmental assessment could be completed in January 2019.

○ Wyoming Office of State Lands and Investments was contacted regarding permitting and right-of-way acquisition. They indicated an application would need to be submitted, an appraisal would be done by the state and application would be approved by the board. Depending on the meeting cycle this would take a maximum of 4 months.

○ Reviews by US Fish and Wildlife and Wyoming Game and Fish will begin. ○ Wyoming State Historic and Preservation Office indicated a Class 3 survey will

be required and will be subject to a 30 day review. The archeologist we have worked with in the past indicated this could be completed in just over a week. There have not been any significant archaeological sites in the vicinity of this project.

○ The state engineer’s office will require a temporary permit to use an existing well and a reclaimed gravel pit for a water source for construction purposes. This approval should only require 30 days.

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○ Letters of support demonstrating this project has broad public support are available on the Crook County Wyoming Road and Bridge website “Little Missouri Road Crisis Mitigation Project” page.

● August 2018 ○ A request for access to collect resource data will be sent out to landowners as

required by state law. ○ Field studies funded by Jim Schlosser will begin for wetland delineation and

wetland species. The framework for the advisory board, weight limits and toll structure will be discussed.

○ The public will be informed of the September County Commissioners meeting. ● September 2018

○ The advisory board will be formed at the County Commissioners meeting ○ The weight limits and toll structure will be determined.

● October 2018 ○ Toll and weight limits will become effective

● December 2018 ○ USDOT BUILD Grant will be awarded ○ The acquisition of additional right-of-way width and construction easements will

begin. ● April 2019

○ NEPA environmental assessment will be completed ● May 2019

○ Field work will continue ■ For wetland delineation and wetland species.

○ Field work will begin ■ Preliminary construction staking ■ Wildlife studies ■ Archeology study

● October 2019 ○ All permitting will be completed ○ Right-of-way agreements will be completed and ready to execute ○ Project bid pack will be completed ○ Bidding will be advertised

● November 2019 ○ Bidding will be held

● 2020 Construction ○ Knife River, a major contractor, indicated if earthwork began in early 2020 that

the entire project including paving could be completed by November of 2020. Crook County is not zoned so no local planning approval will be required see Appendix H. The project will be submitted to the Wyoming State Transportation Improvement Program. Wyoming is in the early stages of developing a State Freight Plan so no opportunity exists to be included.

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Assessment of Project Risks and Mitigation Strategies

● Lack of public awareness and insight into this crisis ○ To raise awareness Otto Schlosser commissioned a study by Interstate

Engineering to demonstrate the level of traffic on this road required a paved surface. Schlosser worked with Interstate Engineering and John Pierce to conduct a dynamic presentation for the County Commissioners and the public. This presentation was critical to advancing the project. One county official who was not familiar with the road problems after the presentation expressed utter disbelief that a road could be in this condition.

● Lack of resources and personnel to apply for this grant and manage the process ○ When the project was proposed the county noted they neither had the manpower

nor the funding to complete this application. Otto Schlosser volunteered to lead the effort, prepare the application, and pay for all professional services required to apply for the grant.

● Environmental permitting delaying the project ○ The most significant risk to this project at this time are delays caused by well

intentioned, but antiquated environmental regulations, that are an overreaction to long ago addressed problems. The anticipated permitting timeline is manageable to meet BUILD Grant deadlines, but every day this project is delayed is another day of unnecessary risk to human life and significant impact upon the environment. We will comply with the law but we will do everything possible to expedite the process.

○ These antiquated regulations relegate the health and safety of human beings and the environment to a secondary position and hold the perceived primary good of attempted absolute environmental preservation above all else. This project needs to happen soon, because a woman just died because of activity related to this road. She had a husband and children, one of whom was a daughter that was just about to be married. Mud being tracked on the paved highways on both ends of the bentonite activity is a threat to human safety and contributed to her death. The road being impassable for emergency services is a threat to human life. Ironically wetlands threatened by significant fugitive dust and runoff from the road surface emissions will be subject to 2 years of additional damage while required studies on wetland species are conducted. It is like the building inspector telling the fireman to wait until after a thorough inspection before putting out a house fire or rescuing a family from the burning building.

● Funding environmental permitting prior to the ability to commit Federal Funds ○ Jim and Bev Schlosser offered $100,000 and Otto Schlosser offered $25,000 to

fund the environmental permitting and any other work necessary to get this project to the point Federal Funds can be obligated.

● Real Estate acquisition for the additional right-of-way width. ○ Currently it appears that all of the additional right-of-way width can be attained

via donation or voluntary sale. The process will begin early enough that any necessary proceedings can be completed as to not delay construction in the event of a landowner becomes unwilling to cooperate.

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● Insufficient funding ○ FMG Engineering is conducting a geotechnical evaluation of the local low-cost

shale the county currently has permitted near this road to determine if it can be used to reduce the amount of base required, which would be a significant cost savings.

○ We will be applying for a $2 million Wyoming Department of Transportation Industrial Road Program grant to cover the project costs that exceed the BUILD Grant limit and local match funds.

○ The toll system will be implemented in October and should generate $958,331 by the time the project is completed.

○ In the event sufficient funding cannot be obtained there are two options ■ The road shoulders can be reduced from four feet to two feet which would

reduce the cost by approximately $2 million. Large shoulders are an important part of this project because of the heavy traffic, considerable amount of oversize loads/vehicles and broken down haul trucks. If the shoulders were narrowed engineering would likely not be comfortable raising the speed limit which would reduce efficiency.

■ The section between Wyoming Highway 112 and US Highway 212 would not be paved and heavy trucks would take Wyoming 112/Montana 326 to US 212 in Montana. This change would reduce the project from 15.5 miles to 11 miles and would reduce the cost of the project by 29% which would ensure the project could be sufficiently funded. This would achieve a slightly lower reduction in emissions and reduce hauling efficiency by adding 6.8 miles to the round trip haul.

● Implementing and Enforcing a Toll System to raise funds and provide for ongoing maintenance costs.

○ Extensive research on this topic has been done by Otto Schlosser and County Attorney Joseph Barron.

■ The first option to enforce the toll will be weight limits and permits, a condition of which will require paying the toll.

■ The second option would be an improvement district that can charge users based upon their relative use of the road. The bentonite companies all own real estate in the district and nonpayment of the improvement district charges would be handled just like delinquent property taxes.

■ The third option would be to lease the road to a not-for-profit community service toll road authority that could install automated tolling and charge just like other toll roads.

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Conclusion Because of the bentonite hauled down this road, no other project is as desperately needed and will have as significant and widespread of an impact. The bentonite transported through this small rural community in northeast Wyoming travels to oil fields across the globe, to the foundries of the Midwest that build heavy equipment that shapes projects around the world as well as the ships, planes, tanks and missiles critical to our national defense . We have an achievable plan. As you can see the community is the driver behind this effort to end this public safety crisis and environmental disaster. We have a plan to make this road segment 100% self-sufficient. The toll is estimated to generate $443,655.10 per year in new non-federal revenue for the maintenance of this road segment. An advisory board of the most interested stakeholders will foster ownership in the management of the road which will ensure efficiency and the longevity of the initial investment. No other surface besides pavement is appropriate for a public road with this level of traffic. If the pounds of bentonite and trucks that move down this road every year were converted to standard SUVs there would be enough vehicles to make a bumper to bumper line from northeastern Wyoming to Miami, Florida. Every 11 years that would be enough SUVs to circle the earth. We humbly request you read Appendix F, which is a letter from the Crook County Road and Bridge Foreman Morgan Ellsbury which clearly illustrates this is a very unique dynamic private/ public partnership rooted in a community coming together in a constructive manner to fix a dark cloud of dust and a muddy mess. We will do what no other force be it private industry or government has been able to do for the past 70 years. All we need is your approval for a $25 million dollar build grant so we can see this project through. Thank you for your consideration The Little Missouri Road Community

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Appendices Appendix A - Interstate Engineering Letter

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Appendix B - SWCA Permitting Estimate

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Appendix C - Construction Costs Interstate Engineering

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Appendix D - Crash Reports

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35

36

37

38

39

40

41

42

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Appendix E - Tonnage By Road and Toll Income

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Appendix F - Support Letter From Crook County Road and Bridge

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Appendix G - Support Letters With Contributions

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48

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51

52

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Appendix H - Crook County Growth & Development Zoning Letter

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Appendix I - Map of Proposed Project

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Appendix J - Road Map of Proposed Project

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