CERTIFIED MAIL RETURN RECEIPT REQUESTED: ( )

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1 ADEQ ARK A N S A S Department of Environmental Quality CERTIFIED MAIL RETURN RECEIPT REQUESTED: ( ) December 1, 2011 Billy C. Staton Terra Renewal, LLC P.O. Box 3036 Russellville, AR Re: Terra Renewal, LLC--Squires SWD Well and Transfer Facility Permit No.: 5143-W; AFIN: Dear Mr. Staton: The Department received your closure plan for the referenced permit on November 1, In accordance with the Department policy, the closure plan was reviewed and determined to be insufficient because all of the storage was not included in the plan. Therefore, the Letter of Credit that was received on November 7, 2011 is being returned. Please submit a revised closure plan for review by December 15, 2011, or your application may be returned. Once the closure plan is approved, the Department will send you a request to provide the financial assurance. Thank you for your cooperation in this matter. If there are any questions concerning this correspondence, please contact Colby Ungerank of my staff at (501) or by at ungerank@adeq.state.ar.us. Sincerely, ~~ Mo Shafii Assistant Chief Water Division MS:ad Enclosure ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY 5301 NORTHSHORE DRIVE / NORTH LITTLE ROCK / ARKANSAS / TELEPHONE / FAX

2 October 20, 2011 Via UPS Terra Renewal LLC Attn: Rusty Janssen 201 South Denver Avenue, Suite B Russellville, AR Re: Type of Bond: Closure/Post Closure Bonds Bond Number: SUR Obligee: ADEQ Description: Mud Bulking Pit Construction, 1029 Hwy. 124, Hattieville, AR Bond Amount: $25, Premium Due: $ invoice will be mailed to Daniel Fuqua for payment. We are pleased to enclose the bond you requested. The bond issued was based upon the information you provided. We suggest you check all the documents enclosed, including the Power of Attorney, signatures, dates, amounts, description, and any other attachments. Please verify that the bond form attached is the form required, and be sure to execute the bond with the proper signature and seal. Thank you and please call me should you have any questions. Sincerely, Jodie Sellers Account Manager Phone: Fax: Two Pierce Place, 6 th Floor Itasca, IL 60143

3 Bond SUR FINANCIAL ASSURANCE BOND KNOW ALL MEN BY THESE PRESENTS: that Terra Renewal LLC 201 S Denver Ave., Suite B, Russellville, AR as Principal, hereinafter called Principal, and, Argonaut Insurance Company Reunion Place, Suite 500, San Antonio, TX as Surety, hereinafter called Surety, are held firmly bound unto the Arkansas Department of Environmental Quality, hereinafter called Authority, for the use and benefit of claimants as hereinafter provided in the amount of Twenty Five Thousand and 00/1 00 Dollars ($ 25, ) for the payment whereof Principal and Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. The amount of the financial assurance shall be reviewed periodically by the Authority to assure that it is adequate. The Authority may require additional financial assurance in the event the same is not adequate. WHEREAS, Principal has filed a Permit with the Authority entitled Waste Storage and/or Land Application, dated October 17,2011, (hereinafter referred to as Permit) which agreement is by reference made a part hereof. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION the Principal shall faithfully perform all its duties and obligations under the Arkansas Water and Air Pollution Control Act and under said Permit, in the manner and time called for in said Permit, then this obligation shall be null and void, otherwise it shall remain in full force and effect, subject to the following conditions: 1. No assignment, modification, or change of the Permit, or change in the work covered thereby, or any extension of time for the completion ofthe Permit shall release the sureties on this bond. 2. The Principal shall notify the Authority, by filing a notice of completion, at the time the Principal determines that reclamation is complete. The Authority shall inspect the site. If the Authority, in its sole discretion, determines that reclamation is complete, it shall issue a certificate of completion and shall release the financial assurance. 3. In the event that the Principal has its Permit removed, ceases operations, and fails to reclaim the site or fails to perform any or all of its duties and obligations under the Permit, in the manner and time called for in the Permit, then the amount of this bond shall be paid over to the Authority to cover the Authority's cost of reclamation.

4 4. This Financial Assurance Bond may not be canceled by the Surety or other holder or issuer except after no less than 60 day notice to the Authority in writing by registered or certified mail. Not less than 30 days prior to the expiration of the above 60 day notice of cancellation, the Principal shall deliver to the Authority a replacement Financial Assurance Bond. In the absence of this replacement Financial Assurance Bond, all operations shall cease until the time it is delivered and in effect. Signed and sealed this 20 th day of October, In the Presence of: ;/ By: Terra Renewal LLC Witn~ Printedn e NICOLE R. HARLAN Pope County Notary Public - A/1(a'\SOS My eomrnisslon Expires Aug r - 7r:I Dh'1?:. JiO.A ~ ~name ~ ~Jo~d:.:.;ie:::...=Se~l~le~rs,,-- Printed name By: Argonaut Insurance Company Surety By:_~~~~~~~~~"...,L.;~ Harold Miller Jr., Attorney-in- '

5 j:::' State of Illinois u ~ County of DuPage z I ~ I, Karen E. Socha, Notary Public of DuPage, County, in the State of Illinois, do hereby t e( t-- certify that Harold Miller Jr Attorney-in-Fact, of the Argonaut Insurance Company who is Z w :E personally known to me to be the same person whose name is subscribed to the foregoing C) c W -.oj 3: o z ~ u e( instrument, appeared before me this day in person, and acknowledged that he signed, sealed and delivered said instrument, for and on behalf of the Argonaut Insurance Company for the uses and purposes therein set forth. ~ w 0:: ::::> Given under my hand and notarial seal at my office in the City of Itasca in said County, en this 20th day of October I Notary Public My Commission expires: Karen E. Socha 1/13/2012.'\ ~ ",", t'" ' I ~ i,.' <",~~ Ii' i., t.'.,'

6 Argonaut Insurance Company 225 W. Washington, 6th Floor Chicago, IL AS POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: That the Argonaut Insurance Company, a Corporation duly organized and existing under the laws ofthe State of Illinois and having its principal office in the County ofcook, lilinois does hereby nominatc, constitute and appoint: William T. Krumm, Sharon A. Foulk, Patricia A. Joseph, Harold Miller Jr.. M. Moody, BetlY L. Tolentino, Michael R. Pesch, Jodie Sellers, Matthew V. Buol Their true and lawful agent(s) and attorney(s)-in-fact, each in their separate capacity if more than one is named above, to make, execute, seal and deliver for and on its behalf as surety, and as lts act and deed any and all bonds, contracts, agreements of indemnity and other undertakings in suretyship provided, however, that the penal sum ofanyone such instrument executed hereunder shall not exceed the sum of: $15,000, This Power of Attorney is granted and is signed and sealed under and by the authority ofthe following Resolution adopted by the Board of Directors of Argonaut Insurance Company: "RESOLVED, That the President, Senior Vice President. Vice President, Assistant Vice President, Secretary, Treasurer and each of them hereby is authorized to exccute powers of attorney, and such authority can be executed by use offacsimile signature, which may be attested or acknowledged by any officer or attorney, of the Company, qualitying the attorney or attorneys named in the given power of attorney, to exccutc in behalf of, and acknowledge as the act and deed ofthe Argonaut Insurance Company, all bond undertakings and contracts ofsuretyship, and to affix the corporate seal thereto." IN WITNESS WHEREOF, Argonaut Insurance Company has caused its official seal to be hereunto affixed and these presents to be signed by its duly authorized officer on the 15th day of September, Argonaut Insurance Company By: JWtZ-~ _ STATE OF TEXAS COUNTY OF BEXAR SS: Michael E. Arledgr Prcsident On this 15th day of September, 2008 A.D., before me, a Notary Public of the State of Texas, in and for the County of Bexar, duly commissioned and qualified, came THE ABOVE OFFICER OF THE COMPANY, to me personally known to be the individual and officer described in, and who executed the preceding instrument, and he acknowledged the execution of same, and being by me duly sworn, deposed and said that he is the officer of the said Company aforesaid, and that the seal affixed to the preceding instrument is the Corporate Seal ofsaid Company, and the said Corporate Seal and his signature as officer were duly affixed and subscribed to the said instrument by the authority and direction of the said corporation, and that Resolution adopted by the Board of Directors of said Company, referred to in the preceding instrument is now in force. IN TESTIMONY WHEREOF, I have hereunto set my hand, and affixed my Official Seal at the County of Bexar, the day and year first above written. IfCICV JIMfNEZ NoUty Pub4ic:, SUIC of Texas My Comrnisaion Exp,es Oecembe< (Notary Public) I, the undersigned Officer of the Argonaut Insurance Company, Illinois Corporation, do hereby certity that the original POWER OF ATTORNEY of which the foregoing is a full, true and correct copy is still in full force and effect and has not been revoked. 1id h )(~Jxr CJul. IN WITNESS WHEREOF, I have hereunto set my hand, and affixed the Seal of said Company, on the AJJ- day of t~, Joshua C. Betl Assistant Vice President THIS DOCUMENT IS NOT VALID UNLESS PRINTED ON SHADED BACKGROUND WITH BLUE SERIAL NUMBER IN THE UPPER RIGHT HAND CORNER. IF YOU HAVE QUESTIONS ON AUTHENTICITY OF THIS DOCUMENT CALL (210)