ARCHIVED REPORTS_FIRST QUARTER 2008 GROUNDWATER MONITORING REPORT

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Fox River Paper Company January 31,2007 Annual 2006 Summary Report Including 4th-Quarter 2006 Groundwater-Monitoring Results Page 2 Y3 Table 1 . Water ualit Protection Standards COC Send' erched A uifer U er A uifer Intermediate A uifer Bicarbonate 307 m /L 482 m /L 315 m /L Calcium 51 m 209 m m/L 49 /L Chloride 178 m 197 m /L 68 m /L Electrical Conductance 1242 mhos/cm 1580 mhos/cm 760 mhos/cm Magnesium 26 m /L 43 m /L 8.8 m /L Nitrate 4.3 m 4.7 mg5.7 m H 6.5-8.5 6.5-8.5 6.5-8.5 Potassium 2.6 m /L 10 m /L 6.8 m /L Sodium 184 m 89 m 100 m Sulfate 111 mo 150 m /L 31 m TDS 713 m 1030 m /L 470 m /L Corrective Action Implementation Schedule Corrective actions and their implementation schedules previously were submitted in L&A's • Amended Report of Waste Discharge For Disposal Of Plant Effluent Water dated June 15, 2005, and the subsequent Addendum To Amended Report of Waste Discharge For Disposal Of Plant Effluent Water dated March 31, 2006. The preferred corrective actions proposed in the documents were (1) the importation of South San Joaquin Irrigation District(SSJID) water to recharge the semiperched aquifer with low TDS water and (2) lining ASB 2 to prevent the infiltration of high TDS effluent water. Fox River is currently negotiating with the City of Ripon for the delivery of approximately 70 acre-feet of SSJID irrigation water; water delivery should begin during the 2007 irrigation season. Following the end of the 2007 irrigation season, L&A will evaluate what effects the application of SSJID water has had on groundwater quality and report findings in the fourth- quarter 2007/annual summary monitoring report. If groundwater quality has indeed improved to the degree anticipated, and FR's process water meets or exceeds newly adopted water quality protection standards for the semiperched aquifer(713 mg/L.TDS), then FR will re- evaluate whether or not there is a need to proceed with the lining of ASB-2. Certification Statement "I certify under penalty of law that I have personally examined and am familiar with the information submitted in this document and all attachments and that,based on my inquiry of those individuals immediately responsible for obtaining the information, I believe that the information is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment." •