SITE INFORMATION AND CORRESPONDENCE

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Mr. Mike Desso • - 5 - • 15 September 2008 Nestle USA Inc. 9. Text reference items. The Introduction section of the Annual Report indicates that the groundwater monitoring and remediation work was performed in accordance with Cleanup and Abatement Order (CAO) No. R5-2006-0720 and CAO No. 93-712. Please note that CAO No. 93-712, issued in 1993 was rescinded and replaced on 24 July 2006 by CAO No. R5-2006-0720. A reference on most of the figures needs to be updated in all future reports: The name Fox River Paper Company should be replaced by the name Neenah Paper Company. The Appendix of future annual reports should include historic tables for all of the wells that Nestle has monitored and sampled in the past and present, not just the Nestle- owned wells. 10. Reference corrections. Section 1.7 of the Annual Report references soil gas surveys conducted southeast of the Former Facility in 1987 and 1988, near the former Gunnert Steel facility. Please reference these surveys in the End Notes of the Annual Report by submitting replacement pages for the End Notes. Electronic reference errors occur on pages 13, 18, 23, and 27. Also, there is a typed reference error at the end of the first paragraph on Page 20: Hydrographs are presented in Appendix B, not D. Please provide replacement pages. Section 4.2.3 of the Annual Report indicates that the influent water to the wellhead treatment systems at 5725 Hall Road and 7501 Kiernan Avenue were periodically analyzed for metals in 2007 and reported in Table 6.2. However, the metals data are not included in the table. Please provide a revised table for Table 6.2. Cleanup and Abatement Order Compliance Nestle is out of compliance with the CAO. Constituents of Concern released at the former Nestle facility continue to migrate unabated in portions of the aquifers beneath Ripon and in an area south of the Stanislaus River in Stanislaus County. Plumes continue to migrate beyond the influence of the two groundwater extraction and treatment systems located at the former facility on Industrial Avenue and near the sewer line leak area on Stockton Avenue. Also, COC plumes continue to migrate away from the City wastewater ponds adjacent to the north side of the Stanislaus River. Remedial actions required by specific dates in the CAO, that would address the COC migration, are now overdue. While there have been valid technical reasons for some of the delays, Regional Water Board staff now believe that these technical problems have for the most part been addressed. A meeting of Regional Watef Board staff and representatives for Nestle should be held by 31 October 2008 so that Nestle can present the status of the required actions and expedite cleanup of the contamination.