SITE INFORMATION AND CORRESPONDENCE

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' ACT SHEET NO. 1 • NOVEMBER 2006 Test results from samples collected in 1986 from a approximately 20 million gallons of groundwater per month. production well at the Facility showed the presence of TCE. The treated water is discharged to the City of Ripon's non- Nestle immediately implemented a program to test for the potable water system for beneficial re-use (e.g. industrial Presence of TCE in soil and groundwater in the area. Nestle processes, irrigation, etc.). These systems have increased the subsequently implemented a variety of cleanup and amount of VOCs removed from the subsurface near the groundwater protection measures, several of which are Facility and reduced the spread of VOC-affected ongoing. It is believed that TCE was unintentionally groundwater to other areas. Since the discovery of VOCs in released to soil during handling of containers and through samples of groundwater, Nestle also has conducted studies small leaks in pipes and sewer lines transmitting wastewater using newer technologies to determine feasible means to from the Facility to the City of Ripon industrial sewage expedite the current cleanup activities for VOCs in the treatment lagoons. Following recent detections of low groundwater. All work was conducted with approval from concentrations of VOCs in groundwater samples collected the Regional Water Board. from wells located adjacent to the wastewater lagoons on the north side of the Stanislaus River (Figure 1), sampling of Nestle currently monitors 132 wells in the vicinity of the site water supply wells south of the Stanislaus River was including City of Ripon municipal wells, Fox River Paper conducted in 2005. VOCs were detected in April 2005 in Company wells, and a selection of private wells and two private water supply wells located in that area. Based on monitoring wells. These wells are monitored to evaluate the these findings. Nestle provided bottled water to the pertinent progress of cleanup measures and to evaluate the presence of well owners until wellhead treatment systems were installed VOCs in groundwater. This monitoring program within a few days. Later in 2005, ten groundwater successfully detected VOCs in groundwater samples from monitoring wells were installed at four locations south of the wells located near the City of Ripon's wastewater lagoons in Stanislaus River. 2000, and therefore Nestle expanded its assessment activities to this area soon after the detection. Since these first Overall Site Cleanup Status detections in 2000, Nestle completed an exploratory boring Nestle has been actively testing for the presence of VOCs in program and installed four wells between the City of Ripon soil and groundwater in the project area since 1986 and has wastewater lagoons and the Stanislaus River to further implemented several interim Regional Water Board- evaluate the presence of VOCs in groundwater. Based on approved cleanup measures to remove or treat soil and those findings and subsequent work, the investigation groundwater affected by VOCs. Site cleanup measures have described in this Fact Sheet was conducted in the study area included removal of affected soil, installation of soil vapor south of the Stanislaus River (Figure 1) and was initiated in extraction (SVE) systems, and installation of groundwater 2004. extraction and treatment systems. Investigation Activities in the Study Area South of the Nestle installed and operated SVE systems at three different Stanislaus River locations near the Facility to extract and remediate VOCs in The investigation activities conducted in the study area south shallow soil above the water table. Removing VOCs from of the Stanislaus River included a survey to locate existing soil was intended to prevent the migration of VOCs to water supply wells in Areas I and 2 (Figure 1), collection of groundwater and then to deeper aquifers where groundwater samples from the known water supply wells, and analysis of is used for drinking water supply. These systems removed the samples for the presence of VOCs. VOCs at the locations of the SVE wells to the extent practicable and therefore operation of the SVE system was The supply well survey was conducted in two areas in discontinued in 2001 with Regional Water Board approval. succession. Supply wells currently in operation in Areas I and 2 (Figure 1) were identified from a records search For both removing impacted groundwater and reducing the conducted at the Stanislaus County Health Services Agency potential spread of impacted groundwater to other areas, and the California Department of Water Resources. Nestle Nestle has installed and operated two groundwater extraction also conducted a door-to-door survey to gain additional systems in the vicinity of the Facility. Nestle first installed a information and/or to confirm the results of the survey. groundwater extraction system at the Facility in 1986. That system, which remains operational today, uses activated Additionally, Nestle installed 10 new monitoring wells at carbon to treat the water removed from the subsurface. different depths on the south side of the Stanislaus River in Nestle has upgraded and improved this system, most recently the fall of 2005 to characterize groundwater conditions and in April 2005, and it currently removes and treats to monitor for VOCs. Further investigation activities are approximately 8 million gallons of groundwater per month. being planned. A second groundwater extraction system, located at Stockton Investigation Findings and Actions to-date Avenue near the Facility. was installed and began operation A total of 54 domestic and irrigation wells were located in October 1999. This system currently extracts and treats during the supply well survey. All 16 wells located in Page 2 of 3