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SALEMEngineering Group, Inc. August 27,2010 Proposal No.Pl-410-0587 Mr.Scott Whitney Mr.Tony Eggs Fresh&Easy Neighborhood Market,Inc. Fresh&Easy Neighborhood Market,Inc. 2120 Park Place,Suite 200 2120 Park Place,Suite 200 El Segundo,CA 90245-4740 El Segundo,CA 90245-4740 Re: Phase II Environmental Site Assessment Proposal and Work Plan Proposed Fresh and Easy Neighborhood Market SEC Pacific Avenue and W Benjamin Holt Drive(6632 Pacific Avenue) Stockton,CA Gentlemen: SALEM Engineering Group (SALEM)previously conducted a Phase I Environmental Site Assessment(dated August 16,2010) for the subject property located at the SEC Pacific Avenue and Benjamin Holt Drive (6632 Pacific Avenue)in Stockton,California(subject property). SALEM also prepared a Geotechnical Engineering Investigation report for the adjacent north property dated March 27,2009. 1.0 BACKGROUND During the course of SALEM's Phase I assessment,SALEM identified the following evidence of Recognized Environmental Conditions (RECs)in connection with the subject property as defined by ASTM E-1527-05: • According to Shaw Environmental Inc.'s (Shaw's) report titled, Phase II Limited Soil and Groundwater Sampling Assessment, Proposed CVS Store No. 75831 Southeast Corner of Pacific Avenue and Benjamin Holt Drive, 6632 PacifeAvenue,Stockton,California,dated August 26,2009,groundwater beneath the subject property at a depth of approximately 40 feet below ground surface (bgs) has been impacted by releases of petroleum hydrocarbons associated with the western adjoining Chevron gasoline station leaking underground storage tank (LUST) site at 6633 Pacific Avenue, and by chlorinated solvents including tetrachloroethene (PCE), trichloroethene (TCE) and cis-1,2 dichloroethene (cis-1,2 DCE) associated with dry cleaning solvent releases from existing and former dry cleaning facilities located within the Lincoln Center Shopping Center located adjoining the subject property to the west- northwest. SALEM's findings of this Phase I ESA revealed the following ASTM non-scope environmental issues in connection with the subject property: • Based upon the existence of petroleum hydrocarbon and chlorinated solvent impacted groundwater beneath the subject property attributed to two off-site sources, it is SALEM's opinion that a potential vapor intrusion condition may exist within the proposed Fresh & Easy Neighborhood Market building as a result of releases of gasoline and dry cleaning solvent related to the adjoining Chevron gasoline station LUST site and the existing and former dry cleaning facilities located within the western and northwestern adjoining Lincoln Center Shopping Center. Vapor intrusion is a way 4055 W. Shaw Avenue,Suite 110 •Fresno,CA 93720 9 (559)271-9700 • Fax(559)275-0827