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Hatef October 31,2012 Page 2 not detention/retention ponds which would receive storm water but not industrial wastewater as detailed in Mitigation Measure HYDRO-1 of the FEIR. The Staff Report states at page 20 that the approval for Use Permit No. PA-0900184 will expire 18 months after approval unless all Conditions of Approval have been complied with, all necessary building permits have been secured and all necessary permits from other agencies have been secured. I am writing to confirm our understanding that only those Conditions of Approval, building permits or other agency permits which pertain to Phase 1 of the Project must be satisfied and secured within 18 months of approval of the Use Permit, and not Conditions of Approval or permits pertaining to Phase 2 of the Project. As stated in Condition of Approval No. I(b), it is our understanding that Union Pacific will have ten years from the approval of the Use Permit in which to satisfy Conditions of Approval and secure permits pertaining to Phase 2 of the Project. Condition of Approval No. 4(a)at page 24 of the Staff Report discusses Rule 9510 of the San Joaquin Valley Air Pollution Control District("District") and requirements for applicants"subject to"Rule 9510. It is Union Pacific's position that District Rule 9510 is preempted by Section 10501(b) of ICCTA and does not apply to the Project. Union Pacific will resolve any questions regarding the applicability of Rule 9510 directly with the District and apprise the County of that resolution. Finally,I would also like to note that Union Pacific is currently negotiating an agreement with the South San Joaquin Irrigation District("SSJID")which will address or render moot certain of the Conditions of Approval set forth in the Staff Report as Item 5. Very truly yours, Barry """" �.w Shotts Barry J. Shorts cc: Gerry Bisaillon Pat R.McGill