February 10, 2016 Issue #102 www.weavecompanies.com

Inside Issue

WT News—Key New

Contracts page 2

WT Partners with NAPA Billings

page 2

WT Enters the Heavy Haul Market

page 3

Quarry Services News page 3

Weave Consulting News—New Drone

page 3

EMI News—Dakota Blu Partnership

page 3

High Five/Clean Inspection Safety

Awards page 4

On the HR Front –24/7 Physician Consults

page 4

2015 Year in Review — Many steps

were taken in 2015 to navigate the steep decline in oil prices and its impact on The Weave Companies. Successful adjustments were made to improve management, streamline operations, and control costs — all of which will keep us on track for the long term. Also, we focused on maintaining a healthy customer base, and many new, long-term contracts were put in place that provide future revenue stability. “A lot has been accomplished over the last year to adjust to market conditions and to better service our customers and employees. We recognize all of the hard work and are very proud of the work ethic and dedication shown in 2015.” — Vu Pham, COO Notable in 2015:

Year end total number of employees across all companies was 170.

General bonuses totalled ~$415,000.

$500 in Clean Inspection Prizes were given, and $2000 in High Five Awards

The Weave Hardship Fund was established with $2,500 donated by the Company and $372 contributed by employees.

Key work anniversaries: 17 years — Ralph Arnold (WT-Billings), John Myers (WT-Billings Shop); 16 years — Michael Blanton (WT-Warren); 15 years — Gary Campbell (QS-Townsend), Scott Evans (QS-Townsend), Larry Zollinger (QS-Townsend); 10 years — Duane Durham (WT-Belgrade), Becky Ham (WT-Billings), James Miller (WT-Hardin), Duawayne Stops (WT-Hardin), Susie Weaver (QS-Billings).

Safety First! Congratulations to Quarry Services for having the best safety record with no recordable incidents for 2013, 2014, or 2015! Congratulations to

Pinnacle Services and WT Hardin for having no recordable incidents in 2015.

WT trucks drove 6,542,398 miles and to a record number of 41 U.S. states!

Key new customer contracts included: Graymont Western, Montana Limestone Company, Pete Lien & Sons, Yellowstone Energy Limited Partnership (aka Billings Generation), Colorado Energy/Rocky Mountain Power and Montana Resources.

EnviroWorks closed its door and shut down operations.

Workplace culture and morale was a focus. Strong core values and personal accountability were promoted. Internal communication was also improved.

Environmental Materials opened a new blending and bagging facility in ND, which has enabled EnviroDry and Econo Dry to be more efficiently manufactured closer to the EMI customer base.

Quarry Services celebrated its 15 year anniversary.

Moving forward in 2016:

Moving into 2016 is promising as we have the right cost structure in place to drive future growth. A major priority is aggressively pursuing new revenue growth opportunities.

Constant analysis of the business will remain a focus so that we can continuously improve to best serve our customers and employees.

Safety remains our top priority. Safety training will be ramped up and employees will continue to be held accountable for safety records.

We thank all employees and customers for their support of our continuous improvement efforts, and have enormous appreciation for your roles in shaping and growing our team of companies!

Pham

Warren Transport (WT) News: Key

New Contracts! — *WT and YELP (aka Billings

Generation/Yellowstone Power

Plant) Sign a New 10 Year Contract: Yellowstone Energy

Limited Partnership (YELP) is an electric power facility owned by Rosebud Operating Services, Inc. and has been a wonderful WT customer for 20 years. WT is excited to continue to haul limestone to YELP’s Billings, MT facility from the Montana Limestone quarry in Warren, MT, located 80 miles south of Billings. Once the limestone is received, YELP crushes it to the proper size to be used in its boilers to remove sulfur dioxide from the flue gas stream. WT also hauls away YELP’s fly ash as part of this contract. Dan Gray, YELP Operations Director said, “We share in WT’s excitement regarding the renewal of the limestone/ash transportation agreement. I have been

at YELP for eleven years now, and WT has always provided us with excellent

service in this crucial aspect of our business. I look forward to the continuation of this great relationship in the future.” This contract couldn’t have been achieved without the excellent team of WT Billings Branch drivers who consistently do a tremendous job on this run. Many thanks to YELP and much appreciation to WT’s Billings Branch on a job well done! YELP is located at 2215 N. Frontage Road in Billings, MT – right next to WT’s headquarters where WT moved to in 1995, simultaneous to the beginning of a long-term contract with YELP.

*WT and Montana Resources, LLP Sign New Contract: WT is

thrilled to sign another 1-year contract for transportation of lime from Graymont in Townsend, MT to Montana Resources’ facility in Butte,

MT. In 2015, this amounted to approximately 50,000 tons of lime being hauled to Montana Resources for the year. About the same amount will be hauled in 2016. Carole Armstrong, Purchasing Manager at Montana Resources said, “With so many loads being hauled, we need a good relationship between the companies and that is exactly what we have. A quick response time to special requests is on the top of the list of helpful deeds that WT has done for us. This means a lot because it is not always predetermined how much lime we will be using because of the change in the types of ore going to the mill.” Montana Resources, one of The Washington Companies, has operated an open pit copper and molybdenum mine in Butte, MT since 1985. WT would like to thank Montana Resourcres for their continued business and the great drivers at WT’s Belgrade Branch who do an excellent job on this run!

*WT Renews Contract with Rocky Mountain Power: WT will

continue to haul coal between the Hardin Generating Station (owned by Rocky Mountain Power) and Westmoreland Resources’ Absaloka Mine as well as provide road maintenance services. Both

Hardin Generation and the Absaloka Mine are located in Southern Montana, on the outskirts of Hardin

and adjacent to the Crow Nation. WT

greatly appreciates the longstanding

business and values the strong relationship that has developed over the years. This successful contract is due to the excellent team at WT’s Hardin Branch, which was established in 2005 to support this contract –thank you for providing top notch customer service to such an important customer!

WT Enters into an Integrated Business Solutions (IBS) Partnership with NAPA Billings and Re-Organizes Billing Branch – To take

advantage of NAPA’s nationwide buying power and to gain inventory management efficiencies, WT has partnered with NAPA IBS. With NAPA IBS, WT will get NAPA owned inventory - (continued page 3….)

“The Weave Way” Driven by honesty and personal accountability, we are committed to a

culture of safety, teamwork, results, and the growth of every team member. We strive to exceed the expectations of our customers and our

co-workers.

YELP’s Tom Shaw, Plant Mgr. & Dan Gray, Dir. Ops.

WT’s Great Branch Managers at a January Operations Meeting — pictured left to right—Jesse Lea (Belgrade), Mike Gomez (Billings), Larry Trangsrud (Billings),

Dean Jensen (Hardin), Les Flack (Rapid City), Warren Anders (Warren)

WT Hardin’s coal haul trucks and belly-

dump trailers

Jennifer Kondracki / Editor jkondracki@weavemanagement.com 406-245-8833 Send corrections or suggestions!

Quarry Services (QS) News: QS recently purchased a 775E CAT haul truck for work at the

Graymont Indian Creek Mine in Townsend Montana. The truck was transported by WT (see above). The haul truck is used, but is in great condition and improves the overall age of the fleet. There are now 3

775’s at the quarry that operate 4 to 5 days a week. QS also recently purchased the Caterpillar Electronic Technician, a diagnostic software that allows QS to communicate, diagnose and service electronically controlled Caterpillar engines and machines—to diagnose existing and potential problems and obtain data for analysis. QS mechanics are excited about the prospect of reducing their inefficiencies that are inevitable when troubleshooting some of the equipment.

Weave Consulting (WC) News: In early January, WC wrapped up

a project for the Rosebud Power Plant in Colstrip, MT, where a new ash disposal area was excavated (~183,000 cubic yards were moved) and 1200 feet of steel piping for a stormwater underdrain for the ash pit was installed. During

this project WC successfully utilized employees and equipment from WT, QS and EMI. This was truly a great example of the synergies and strength that our companies can capitalize upon while working together. In other news, WC has invested in a drone (pictured right) that will provide even more expanded professional services. Some of the applications would include precision imagery for volume measurements of ore/soil/gravel stockpiles and custom mapping for mine permitting. The goal is to be on the forefront in technology and education, setting WC apart from our competitors and ultimately providing more value to customers.

Driver’s Note: Inclement weather causes roughly 25 percent of all speeding-related truck driving

accidents. Cut your speed down by one-third on wet roads, and by one-half on snowy or icy ones. Also allow more time for maneuvers in poor weather. Let your blinker run for a good 5 blinks before your change lanes, and signal for turns before slowing down. And, if you see other truckers pulling over, maybe it's best you do

likewise. Spread the word! WT is Hiring Drivers! Did you Know? All employees receive a Referral

Bonus of $500 after the person referred has been employed for 6 months.

WT News/NAPA IBS Cont…. - customized to WT’s fleet, and

WT will only pay for parts when they are used. NAPA will source and manage all the parts needed to maintain and repair WT’s fleet of trucks, trailers and equipment. Basically, it will be WT’s own NAPA

store right inside WT’s shop—that will be rolled out 2/15-3/1—Jason Quale has been hired by NAPA as WT’s in house representative. As part of NAPA coming in, WT’s Billings Branch is re-organizing, so that the shop and trucking services are operated under one manager. Congratulations to Mike Gomez, Billings Branch Manager, who has been promoted to oversee all WT Billings operations. Also, welcome back to Larry Trangsrud, who is working for WT again as Billings Asst.

Branch Manager. New Power Poles in WT Billings Yard — As part of

efforts to be more efficient, the Billings front yard now has power poles with lights (pictured right) that can accommodate 4 units between

them. WT Enters the Heavy Haul Market — WT is now

hauling over-weight shipments, commonly referred to as heavy hauls. These hauls are complex, require experience, special permits, and careful planning to ensure safety. In early January, WT hauled a 775E CAT haul truck for Quarry Services all the way from San Antonio, TX to Townsend, MT (pictured left). WT-Billings Driver, James Tucker, was responsible for this heavy haul run and did an excellent job!

New power poles at WT’s Billings Branch

775E CAT haul truck being loaded in San Antonio, TX

Environmental Material Inc. (EMI) News: EMI has a

new partnership in place with Dakota Blu, an E&P oilfield waste disposal company. EMI is now marketing and billing the environmentally friendly waste treatment and disposal services provided by the Dakota Blu Berg Well in Powers Lake, ND. Dakota Blu offers: Proven waste disposal re-injection / Flat rate billings with no upcharge for solids content in drilling fluids / Disposing most fluid types / Specialties include: non hazardous oilfiled fluids, frac tanks, invert mud, tank bottoms, frac gel, flow back fluids, LCM, surface or pit fluids. Visit www.dakotablu.com or call 701-339-0265 for more information.

Ryder Juntenen, WC Ops. Mgr. holding the drone.

High Five Awards — The following employees went the extra mile to add significant value to our

customers and to our organization and each received $100. Winners include: Max Watson (WT-Billings Driver), Rob Evans (WT-Billings Driver), JD Balcom (WT-Billings Mechanic), Sam Rahn (WT-Warren Driver), Wade Hoskin (WT-Warren Driver), Jacque Basaraba (WT Belgrade Office Asst.), Christina Lynch (WMG Accounting Asst.), Cori Holt (EMI Yard Supervisor), Bob Boger (QS Foreman) and Jesse Hilliard (WC Operator). Congratulations to all!

Clean Inspection Safety Awards: As safety is imperative to our success and future, these

awards recognize drivers and mechanics who have demonstrated safety excellence. Each month, all drivers who receive clean DOT inspections are entered into a random $50 award drawing. In addition, the mechanic(s) involved in the most recent maintenance or service to the winning driver’s truck receive $50 (split evenly if more than one mechanic). August – Driver Award Winner: Cory Moe; Mechanic Award Winners: Sean Clinch & Shay O’Neill September – Driver Award Winner: Sam Stearns ; Mechanic Award Winners: Loren Langford & Christopher Leeson October – Driver Award Winner: David Schwartzman; Mechanic Award Winner: Tyler Midland November – Driver Award Winner: Weyland Schenk; Mechanic Award Winner: Loren Langford

December – Driver Award Winner: Russ Brown; Mechanic Award Winners: JD Balcom & Loren Langford

On the HR Front: Coming soon – 24/7 Physician Consultations — Our

Health Insurance plan is partnering with American Health to offer employees 24/7 Physician Consultations, also known as Teladoc services. Teladoc was the first and is the largest provider of telehealth medical consultations in the country. While Teladoc is not intended to replace an employee’s primary care physician, or to be used during a medical emergency, it will expand employee access to quality care and help provide faster recovery from moderate conditions such as sinus and/or ear infections. It also provides the added convenience of licensed physician consultations by phone after hours, on

weekends, or during holidays. Stay tuned for more information. Teaming up with the Montana State Fund — To further strengthen our safety culture, we have selected the

Montana State Fund (MSF) as our Workers Compensation Insurance provider. Work injuries cost money and cost workers their quality of life, so with the assistance of a dedicated team of experts from MSF, we will have more employee and manager education, programs, and action. Sam Buchanan, Safety Director, has developed a training program that provides valuable information to employees about what we do and how to do it safely. In the event of a work related injury, we’ve implemented return to work and stay at work programs to help injured workers get back on

their feet. New 401K Plan — Our 401k Plan has been moved to the Principal Financial Group. Our new investment

advisors are Ken Fiscus and Scott Hattler with UBS. All employees received this 401K information during open enrollment in January. Contact Judy Garrett, HR at 406-245-8833 with any questions.