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�• CONDOR EARTH TECHNOLOGIES INC 4 188 Frank West Circle Suite I Stockton CA 95206 Phone 209.234.0518 FAX 209.234.0538 s CONDOR n 102 V NOV 1. 9 2003 November 18, 2003 ENVIRONMENT HEALTH PERMIT/SERVICES La Charles Holden Monte Vista Entitlement, Inc. LO 509 W. Weber Avenue, Suite 410 Stockton, CA 95203 Subject: Phase l ESA Peer Review and Limited Phase Il ESA Report Condor Project No. 3690 Dear Mr. Holden: This letter report describes the results of a Phase I Environmental Site Assessment (ESA)peer review and a limited Phase 11 ESA conducted by Condor Earth Technologies, Inc. (Condor) for properties designated L' by Assessor's Parcel Numbers (APNs) 149-180-07, 149-200-01, 149-200-02, 149-200-03, 149-200-09, and 149-200-10 (site) in Stockton, San Joaquin County, California. The site is shown in Figures 1, 2, and 3, attached. The site was the subject of a Phase I ESA performed by Geocon Consultants, Inc. in October 4. 2000. The ESA identified a possible underground storage tank(UST) in association with parcel 149-200- 10. One 500-gallon capacity waste oil UST was removed from APN 149-200-10 on May 4, 2001 by Advanced GeoEnvironmental, Inc. This Phase I ESA peer review and limited Phase II ESA was &.0 performed for Monte Vista Entitlement, Inc. Introduction 6. The scope of work for this project included work that would be included within the typically larger scope of a Phase II ESA. The purpose of conducting a Phase II ESA as part of a commercial real estate transaction is to provide the purchaser of the real estate some initial and future protection from potential L. liability if hazardous substances are discovered on the site. The potential liability for the cleanup of hazardous substances and the available defenses to such liability La are outlined in the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and its amendments, commonly known as the Superfund law. The American Society of Testing and Materials (ASTM) states that a Phase 11 ESA, performed after the completion of a Phase I ESA, will help to satisfy the requirement of"all appropriate inquiry into the previous ownership and uses of the property consistent with good commercial or customary practice" [42 USC § 9601(35)(B)] and will help to provide "innocent landowner defense" (ASTM Standard E 1527-00, Sec. 1.1) to the purchaser involved in a commercial real estate transaction. In addition, ASTM asserts that a Phase 11 ESA evaluates recognized environmental conditions (RECs) "for the purpose of providing sufficient information regarding the nature and extent of contamination to assist in making informed business decisions" (ASTM Standard E 1903-97, Sec. 1.2) including "the potential financial exposure associated with environmental risks" L+ (ASTM Standard E 1903-97, Sec. 3.1.3). LN La