SITE INFORMATION AND CORRESPONDENCE

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II. BACKGROUND 2.1 Ownership. The Site is owned by Surland Development Company. 2.2 Substances Found at he Site. Information contained in a report entitled "Health Risk Screening Evaluation, Surland Homes (Laurelbrook)" dated August 2002 and prepared by Geomatrix Consultants states soil and groundwater sampling was conducted at the site. Sampling indicates the presence of petroleum hydrocarbon constituents including toluene, ethyl benzene, xylene, and polynuclear aromatic hydrocarbons detected in either soil and groundwater. 2.3 Physical Description. The Surland Homes Property (Laurelbrook) consists of 26 acres and is an occupied single-family residential development. The area where the affected petroleum soil occurs on 1.17 acres over six separate parcels. 2.4 Site History. From the early 1900's to the late 1950's, the Old Valley Pipeline was used by Standard Oil Company (now Chevron Texaco) to transport heavy petroleum (crude oil)from Bakersfield to Richmond, California. The pipeline was decommissioned in 1950. Associated Oil operated another adjoining crude oil pipeline from the 1900's to the late 1960's, when it was taken out of service. Petroleum contamination resulted from leaks from the pipeline and is found along the southern edge of the Surland Home Property (Laurelbrook). The site was development into single family residential community in the late 1990's. Soil and groundwater was collected prior to the development of the subdivision. III. AGREEMENT 3.0 IT IS HEREBY AGREED THAT DTSC will provide review and oversight of the response activities conducted by the Proponent in accordance with the Scope of Work contained in Exhibit C. The Proponent shall conduct the activities in the manner specified herein and in accordance with the schedule specified in Exhibit E. All work shall be performed consistent with H&SC section 25300 et seq., as amended; the National Contingency Plan (40 Code of Federal Regulations (CFR) Part 300), as amended; U.S. EPA and DTSC Superfund guidance documents regarding site investigation and remediation. 3.1 Scope of Work and DTSC Oversight. DTSC shall review and provide Proponent with written comments on all Proponent deliverables as described in Exhibit C (Scope of Work) and other documents applicable to the scope of the project. DTSC shall provide oversight of field activities, including sampling and remedial activities, as appropriate. DTSC's completion of activities described above shall constitute DTSC's complete performance under this Agreement. 2