Graymont recognizes that greenhouse gas emissions are a concern to society.  At the same time, the full societal benefits of lime can not be realized without carbon dioxide being chemically liberated from limestone.  At Graymont we believe we must respond to society’s concerns, and to that end we are already reducing our energy related greenhouse gas emissions.  In 2006, the energy related greenhouse gas emission intensity of Graymont’s North American lime operations was 8% lower than 2003.

Graymont will comply with all applicable greenhouse gas regulations, now and in the future.  We will meet our obligations through a responsible balance of emission reductions and the use of available compliance mechanisms.

Graymont has a plan to reduce greenhouse gas emissions through actions such as:

• Investment in energy efficient lime kilns.
• Investment in and promotion of energy efficiency.
• Putting all partially calcined material to beneficial use.
• Incorporating the cost of carbon emissions in investment decisions.

Graymont has already implemented several initiatives:

• Investment in lime kiln upgrades in Centre County, Pennsylvania.  In planning and construction for over seven years, this project, once complete at the end of 2007, will reduce the energy need to produce a ton of lime by 40%.  That will save enough energy to power 27,000 Pennsylvania homes.
• A corporate automobile policy, initiated in 2004, that mandates high efficiency vehicles for employees eligible for company automobiles and promotes best available technologies for vehicle fuel efficiency.
• A corporate energy efficiency investment program, initiated in 2005, that annually will see investment equal to at least 2.5% of total energy costs in energy efficiency projects at all Graymont’s facilities.
• A company sponsored employee home energy efficiency improvement contest, initiated in 2006.
• Investment in research and development looking at the concept of carbon dioxide capture using micro-algae and subsequent conversion of micro-algae into biomass fuel, initiated in 2006.

Based on 110 MMBtu per household per year from the U.S. DOE Energy Information Administration Residential Energy Map 2000.