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3.5.12 Pipelines No reports or other evidence that would indicate the presence of underground pipelines containing hydrocarbons or other products was discovered during the investigation of the subject property. 3.5.13 Polychlorinated Biphenyls Electrical transformers, hydraulic equipment, capacitors, and similar equipment may contain polychlorinated biphenyls (PCBs) in hydraulic fluids or dielectric insulating fluids within the unit. Fluorescent light fixtures have ballasts that may contain PCBs. The federal Toxic Substances Control Act (TSCA) generally prohibited the domestic manufacture of PCBs after 1979. There is potential for the dielectric fluid in electrical and hydraulic equipment manufactured prior to that date to contain PCBs. Two pad-mounted electrical transformers were observed on the subject property, one near the northeast corner of the subject property and one near the southwest corner of the building. The transformers were determined to be owned by PG&E and were not labeled as to their PCB content. According to the Phase I ESA report prepared by SWL in December 1993, no transformers were present on the subject property at that time. Based on new installation of these transformers, it is unlikely that they contain PCBs. No leakage, staining, soil discoloration, or stressed vegetation was observed on the ground surface around the transformer. Except for intentional damage caused by owners/occupants, PG&E, the owners of the transformers, would be held responsible for remediating any contamination associated with the transformers. No further investigation is warranted. The use of fluorescent light fixtures and ballasts throughout the office and warehouse areas of the building was observed. The light fixtures appeared to be in good condition. Based on the construction date of the subject property, it is unlikely that the fluorescent light fixtures contain PCBs. No other potential PCB-containing equipment was observed on the subject property. The transformers and fluorescent light ballasts on-site appeared to be in good condition, and there was no evidence of a recognized environmental condition. No further investigation is warranted. 3.5.14 Site Inspection Conclusions The site inspection did not identify any recognized environmental conditions related to the subject property. No further investigation is warranted. 3.6 AREA RECONNAISSANCE 3.6.1 Adjacent Properties The subject property is surrounded mainly by commercial and light-industrial facilities. The subject property is bordered: On the north by Schulte Road, followed by agricultural land. Final ESA-30102-Tracy CA.doc 10 SECOR Intemational Incorporated March 28,2005