ARCHIVED REPORTS_FIRST QUARTER 2008 GROUNDWATER MONITORING REPORT

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January 31, 2007 Mr. Todd Del Frate California Regional Water Quality Control Board Central Valley Region 11020 Sun Center Drive#200 Rancho Cordova, CA 95670-6114 Dear Mr. Del Frate: SUBJECT: TRANSMITTAL LETTER FOR COMBINED 2006 ANNUAL SUMMARY REPORT AND 4TH-QUARTER 2006 GROUNDWATER-MONITORING REPORT,FOX RIVER PAPER COMPANY,RIPON, CALIFORNIA Introduction Please find attached a copy of Lawrence & Associates'(L&A's) Combined 2006 Annual Summary Report And 4th-Quarter 2006 Groundwater-Monitoring Report dated January 31, 2007, for the Fox River Paper Company's (FR's) mill located at 942 South Stockton Avenue, Ripon, California. • Essential Point(s) Of Annual Summary Report Including 4th-Quarter 2006 Groundwater- Monitoring Data Groundwater monitoring results were generally similar to those from previous monitoring events. The application of process water for the irrigation of tree orchards and potential infiltration from the process-water ponds and Aeration Stabilization Basin 2 (ASB-2) are suspected to have resulted in groundwater mounding in the semiperched, upper, and intermediate aquifers. Infiltration of plant process water is potentially responsible for some of the elevated conductivity levels measured in onsite monitoring wells. Violations Since Last Report No violations have occurred at the site since the submittal of previous groundwater-monitoring report. FR is currently in a corrective action monitoring program per Waste Discharge Requirements (WDR), Order 5-01-148, dated 14 June 2001. During the past quarter, no changes in the paper making process or disposal of plant-process water has occurred at FR, nor has FR's effluent exceeded TDS levels set forth in their WDRs. In correspondence dated August 12, 2006, the California Regional Water Quality Control Board, Central Valley Region adopted new water quality protection standards (WQPS) for the aquifers underlying the FR site. The new standards for the FR site are: