Page 166 - Martin Marietta - 2024 Proxy Statement

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

The Magnesia Specialties business is highly dependent on rail transportation, particularly for movement of dolomitic lime from
Woodville to Manistee and direct customer shipments of dolomitic lime and magnesia chemicals products from both Woodville
and Manistee. The segment can be affected by the risks mentioned in the long‐haul distribution discussion in the Building Materialsl l
Business’ Key Considerations section.

Environmental Regulation and Litigation
e expansion and growth of the aggregates industry is subject to increasing challenges from environmental and political advocates
aiming to control the pace and direction offuture development.Certain environmental groups have published lists of targeted
municipal areas, including areas within the Company’s marketplace, for environmental and suburban growth control. The effect
of these initiatives on the Company’s growth is typically localized. Further challenges are expected as the momentum of these
initiatives ebb and flow. Rail and other transportation alternatives are being heralded by these special‐interest groups as solutions
to mitigate road traffic congestion and overcrowding.
The Company’s operations are subject to and affected byfederal, state and local laws, rules and regulations relating to the
environment, health and safety and other regulatory matters. Certain of the Company’s operations may occasionally use
substances classified as toxic or hazardous. The Company regularly monitors and reviews its operations, procedures and policies
for compliance with these laws and regulations. Despite these compliance efforts, risk of environmental liability is inherent in the
operation of the Company’s businesses, as it is with other companies engaged in similar businesses.

Environmental operating permits are, or may be, required for certain of the Company’s operations; such permits are subject to
modification, renewal and revocation. New permits are generally required for opening new sites orfor expansion at existing
operations and can take several years to obtain. Moreover, land use, rezoning and special or conditional use permits are
increasingly difficult to obtain. Once a permit is issued, the location is required to generally operate in accordance with the
approved site plan.
The Clean Air Act, originally passed in 1963 and periodically updated by amendments, is the United States’ national air pollution
control program that granted the United States Environmental Protection Agency (USEPA) authority to set limits on the level of
various air pollutants. To be in compliance with National Ambient Air Quality Standards, a defined geographic area must be below
established limits for six pollutants. Environmental groups have been successful in lawsuits against the federal and certain state
departments of transportation, delaying highway construction in municipal areas not in compliance with the Clean Air Act. The
USEPA designates geographic areas as nonattainment areas when the level of air pollutants exceeds the national standard.
Nonattainment areas receive deadlines to reduce air pollutants by instituting various control strategies or otherwise face fines or
control by the USEPA. Included as nonattainment areas are several major metropolitan areas in the Company’s markets, such as
Houston/Brazoria/Galveston, Texas; Dallas/Fort Worth, Texas; Bexar County in San Antonio/New Braunfels, Texas; Denver,
Colorado; Boulder, Colorado; Fort Collins/Greeley/Loveland, Colorado; Atlanta, Georgia; Baltimore, Maryland; Los Angeles‐San

Page 64 ♦ 2023 Annual Report