SECRETARY’S ENVIRONMENTAL ASSESSMENT REPORT

FOR A COASTAL ZONE ACT PERMIT APPLICATION

Re: MAGCO, Inc.

August 2009

Introduction

As required by the “Regulations Governing Delaware’s Coastal Zone” (Section H.3 [d]) dated May 11, 1999, and amended October 1, 2001, the Secretary is required to make an environmental assessment of the impact(s) of the project on the Coastal Zone of Delaware. This is done by evaluating the project’s likely impact on the statutory criteria and making a preliminary determination of the sufficiency of the Offset Proposal. The following is such an environmental assessment of the proposed project described in an application for a Coastal Zone Act (CZA) Permit, received fromMAGCO, Inc.

The fact that DNREC considers an application to be preliminarily, administratively complete does not constitute the Department’s position as to whether the application should be approved or denied. That decision will not be made until after the public hearing. The purpose of the Secretary’s written assessment is to assist the applicant and the public to focus on issues presented in the application. It constitutes an administrative determination that the application is sufficient to proceed to a public hearing. In addition, should the Department eventually issue the CZA Permit, it does not automatically guarantee the applicant will receive other required permits.

The Proposed Project

The company is seeking a Coastal Zone permit to relocate an existing sea salt packaging operation from its current location in the Coastal Zone (6200 Philadelphia Pike, Claymont) to a site located at 341 Pigeon Point Road, New Castle. The proposed operation consists of transporting bulk salt to the site by truck, reducing the moisture content of the salt through a fluidized dryer bed, sorting the salt into distinct sizes suitable for different end markets, packaging the salt into bags or other containers and shipping the bags/and or containers off-site to commercial markets. Some of the salt may be blended with other materials (potassium chloride, magnesium chloride, calcium chloride, urea, and calcium magnesium acetate) and/or colorant for special product lines.

Sufficiency Statement

This application for a CZA Permit, including supplemental information, has been reviewed by the Department to determine its completeness. After a thorough review of the company’s application and file, the Department considers this application to be administratively complete and sufficient for proceeding to public hearing.

Environmental Assessment

The anticipated environmental impacts are primarily air emissions from the expansion of the drying and packaging operation (currently producing approximately 80,000 tons per year; the proposed operation may generate a maximum production rate of finished product of 200,000 tons per year). The Table below lists the estimated emissions from the existing dryer at the current location (“Current Operation”) and the estimated emissions for the operation at the proposed new site (“Proposed Operation”). The “Overall Impact” column is the difference between the current and proposed operations. Because MAGCO, Inc. is currently operating in the Coastal Zone, the expectation is that increased emissions associated with the expansion of the operation would require an offset, not the total of emissions, some of which are already occurring in the Coastal Zone.The difference is the amount that must be offset in accordance with the Coastal Zone Act regulations.

MAGCO, Inc. is in communication with the Air Quality Management Section regarding their need for an air permit.

Offset Proposal

The proposed Offset Plan consists of obtaining thirteen (13) air credits through the Delaware Economic Development Office and a one-time financial contribution of $2500 to the South Wilmington Special Area Management Plan (SAMP) to assist with a trust fund for street tree maintenance.

Conclusion

The company’s application is preliminarily administratively complete.

Approved:______

Collin P. O’Mara

Secretary

Date: