SITE INFORMATION AND CORRESPONDENCE_FILE 2

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CfIAPIN BROS . , � Properties andAgricielture, shice Iwo 1203 N. Carlton Avenue Stockton, California 95203 ome: . -4349 Pager: (209) 775-0275Fax(209)464-6947 S F P 2 1 2004 September 18, 2004 rE; .'i,T�SERVICES Advanced GeoEnviornmental, Inc. 837 Shaw Road Stockton, Ca. 95215 Subject: Billing invoices Our records show the State Water Resources Control Board(SWRCB)has reimbursed Chapin Bros Inc. (Priority B Claimant# 557)the sum of$474,838,not including the current reimbursement Number 25 for to $77,107. Totally$525,000 having your firm (AGE)received a very large portion of the total disbursement. You should be aware the Underground Storage Tank Fund as a"condition of payment' requires the"Claimant must comply with all applicable state laws,rules and regulations which are a condition of payment from the USTCF (fund) and with all terms, conditions, and commitments in the claimant's application. We intend to take this responsibility seriously knowing we have a vested interest to see the funds of UST are properly used. Our written correspondence shows we were unsuccessful in our effort to obtain answers to questions concerning the billing invoices for Professional Services rendered. Your (AGE) lack of response to our concerns is very disappointing and has raised many red flags. Foremost our query concerns the billing cost of Ground Water Extraction System Rental. The monthly charge of$3200. is now totaled$105.000 resulting in a cost exceeding the purchase price. When this equipment was acquired by A.G.E. it was with the understanding the water extraction process would last for a considerable length of time and we raised the question of the cost of rental versus purchase before the actual installation and on several occasion since. We believe the resulting excessive expense is not appropriate or acceptable and that a reasonable person may determine the results of poor management or simply too greedy.