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Chip & oil seal is also known as macadam named for the Scottish pioneer for paved roads.  The engineer John McAdam invented the revolutionary crushed stone layer roads in the early 1800s.  Even today this process is used and with better binders and equipment, McAdam’s revolutionary idea still resembles his style of roads.  Chip seal roads are greatly less than asphalt roads.  As long as the road has been properly prepared and compacted, putting a layer or two of small crushed limestone or granite with an oil solution to bind it together will seal off the roadbed from water.  For a two-lane road, the cost to chip & seal is from $12,000 to $20,000 compared to $50,000 to $100,000 for two to four inches of asphalt.