SITE INFORMATION AND CORRESPONDENCE

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Nelson Ready Mix Concrete And Rock Company, Inc. -2- JUN 2 8 2012 Claim No. 019076 commitment to reimburse eligible costs claimed. Such commitment will be deemed to occur only when a letter of commitment is issued that specifically commits funds to a claim. (b) Claims on the priority list will generally be processed and paid according to priority class and the ranking of claims within each priority class. To the extent practicable, all claims within a higher priority class will be processed and paid before any claims in a lower priority class. Your claim application was received on October 4, 2007, and was accepted to the Priority List on January 19, 2010. The ranking of claims is determined by priority of claim and by the application receipt date. Thus, your claim was ranked based on the October 4, 2007, receipt date. Claims are issued a LOC and funded in rank order, dependent on available funding. Although we appreciate your diligence with cleanup efforts, the Fund, unfortunately, does not have adequate funding available for all new claims at this time; therefore, we must rely on the Priority List ranking to determine the order in which claims will be funded once funding is available. We expect that we will be issuing Priority "B" claims in fiscal year 2012/2013. Lastly, you assert that the eligibility determination took a long period of time and you should have a LOC by now. As stated above, the ranking of claims is established by the receipt date, not the date that the eligibility evaluation is completed. Therefore, the delay between the receipt date of your claim and the eligibility determination did not have any effect on your claim ranking, or your place in line to receive an LOC. Pending approval of your claim budget and a satisfactory compliance review, the next step is to issue a Letter of Commitment (LOC) obligating funds to the project when funding is available. The issuance of LDCs is dependent on available funds and the closure of existing claims. You may view the claims on the annual Priority List on the Fund's website at http://www.waterboards.ca.gov/water issues/programs/ustcf/prioritylist.shtml. Allocation of Funds: Prior to issuing an LOC, Fund Technical Staff will conduct a review of your claim and information in GeoTracker. Based on this review, your claim will be categorized according to the cleanup phase being conducted at the site. A funding cap will be established for your claim, and you will be requested to submit a claim budget. Claim Budget: All Priority A, B and C claims are required to have an approved scope of work and budget prior to receiving an LOC. These budgets must be updated and approved annually, and will enable the Fund to develop cash flow projections and improve payment processing times. Detailed instructions and necessary forms will be sent to you when the Fund determines funding is available for your claim. Information