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Advanced <br /> GeoEnvironme Inc, <br /> 28 September 2004 <br /> AGE-NC Project No. 95-0103 <br /> Mr. Russell Chapin <br /> CHAPIN BROTHERS INVESTMENTS., INC. <br /> 1203 North Carlton Avenue <br /> Stockton, CA 95203 <br /> Subject: Billing and Invoices - Ground Water Extraction Remediation System <br /> CHAPIN BROTHERS, INC. <br /> 1766 Monte Diablo Avenue, Stockton, California <br /> Dear Mr. Chapin: <br /> In response to your letter dated 18 September 2004,Advanced GeoEnvironmental, Inc. (AGE) has <br /> the following comments for your consideration: <br /> 1. -_-ou state that the Underground Storage Tank Cleanup Fund requires the Claimant "must <br /> comply with all applicable state laws,rules and regulations which are a condition of payment <br /> from the USTCF and with all terms, conditions, and commitments in the claimant's <br /> application." We agree with your iteration of the USTCF reimbursement guidelines and <br /> would like to reinforce that Chapin Brothers,Inc. is the Claimant with the USTCF,not AGE. <br /> Furthermore, we would like to remind you that reimbursement from the USTCF is not a <br /> condition of payment to AGE. However, AGE strives to work with our Clients to help them <br /> obtain as much reimbursement as possible from the USTCF for our services. <br /> 2. Your evaluation of the billing cost of the AGE-owned ground water extraction system at your <br /> site appears to be in error. Our records indicate that you have been invoiced for a total of 23 <br /> months of system rental at a cost of$3,200/month,with a total cost of$73,600,not$105,000 <br /> as you indicate in your 18 September 2004 letter.Furthermore,only 14 months of rental costs <br /> have been paid to AGE by Chapin Brothers, Inc., totaling $44,800. The difference in your <br /> costs (between $105,000 and $73,600) is likely due to the cost of media (i.e. granular <br /> activated carbon [GAC] and/or Sunsolve)which is considered a"consumable"and not part <br /> of the system rental nor purchase. <br /> 3. When the ground water extraction system was purchased by AGE for use at your site,it was <br /> done with the expectation of"renting"or"leasing"the system to you for a number of months <br /> (approximately 12 to 24 months).You chose the rental option based upon your apparent lack <br /> of financial resources to provide"up-front"costs for the purchase of the system. Therefore, <br /> 837 Shaw Road,Stockton, California 95215 <br /> Telephone (209) 467-1006 FAX(209) 467-1118 <br />