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CONDOR EARTH TECHNOLOGIES INC y 188 Frank West Circle Suite Stockton CA 95206 Phone 209.234.0518 FAX 209.234.0538 CONDOR ` www.condorearth.com November 11,2011 .5 Mr.David Sargent ` Shea Homes Mountain House, LLC 2580 Shea Center Drive Livennore, CA 94550 Re: . Phase I Environmental Site Assessment Update Report for Neighborhood K and Neighborhood L,Mountain House,.California Condor Project No. 4601 Dear Mr. Sargent: This is a report. of findings for the ,Phase I Environmental Site Assessment (ESA) update for Neighborhoods K and L with Assessor's Parcel Numbers (APNs) 258-040-01, 209-170-03, and 209-040- 09 (Site) (Figures 1 through 3, Attachment A). Condor Earth Technologies, Inc. (Condor) is submitting this report in order to update the Neighborhoods D, K, L, and Town Center Phase f Environmental Site Assessment Report and a Partial Response to Mountain House Master Plan Chapter Six, Mountain House, San Joaquin County, California, dated November 30, 2004 and prepared by Condor. The Phase I ESA was perfoi-rned in accordance with the guidelines set forth in Practice E 1527-00, Standard Practice for Environmental Site Assessments: Phase I Enviromriental Site Assessment Process, published in May 1993 (Revised 2000)by the American Society for Testing and Materials(ASTM)and in accordance with the prevailing standard of care for completing such assessments in California at the time of the site visits. This update report was conducted in accordance with the guidelines set forth in ASTM Practice E 1527- 05,published November, 2005,which is the most recent Phase I ESA Standard published by ASTM. This report includes a summary of the Phase-I ESA conclusions and a description of changes in both envirorunental database searches and to Site conditions. SUMMARY OF PHASE I ESA Neighborhoods K and L comprise approximately 700 combined acres. In the 2004 Phase I ESA, Condor identified the following recognized environmental conditions associated with the Site: • The historical application of agricultural chemicals for agricultural purposes on both Neighborhood K and Neighborhood L. The two wastewater treatment reservoirs located in the southeastern portion of Neighborhood L and associated potential impacts to the soil and/or groundwater from storage and/or land application of treated wastewater in Neighborhood L. • 'The identified petroleum hydrocarbon contamination of soil and groundwater associated with the Old Valley Pipeline immediately south of the Site(Neighborhood L). • The two active pipelines (a six-inch diameter Chevron/Texaco petroleum pipeline and a 12-inch diameter Kinder Morgan petroleum pipeline)paralleling Byron Road and the railroad tracks south of the Site(Neighborhood L). I ,