SITE INFORMATION AND CORRESPONDENCE_CASE 1

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V Mr. Dick Mathews CONOCO PHILLIPS March 10, 2005 Page Two 3. You indicate that BP Oil, predecessor-in-Interest to COP, is monitoring the various wells on or about the property including approximately seven (7) located on site; four (4) off site and one (1) in a sidewalk area. Quarterly reports of groundwater monitoring are prepared by its authorized agent, currently Mr. Kyle Christie of Atlantic Richfield _ Company (URS) submitted to SCEHD for review by SCEHD staff, most particularly, Mr. Harlin Knoll of that agency in conjunction with Ms. Margaret Lagorio, as and when required. 4. You indicate that BP Oil and COP share responsibility for remediation as defined by separate agreement between these entities and that funds are, and have been, available for remediation efforts required by SCEHD or any other agency having jurisdiction. You further explain that BP Oil, as successor-in-interest to Mobil, assumed all preexisting groundwater contamination conditions at this location at the time it acquired Mobil's assets and other liabilities in 1989. 5. Mr. Knoll indicated that additional lateral and vertical testing is required and intends to send a directive letter to Mr. Kyle Christie requiring a "work line" response. You agree to facilitate better communication between Mr. Christie and other staff of SCEHD, most particularly Mr. Knoll since Mr. Knoll indicates that calls to Mr. Christie, of recent date, are not being returned. He also indicates that a review of a City of Tracy "ball park well" located with the 1,000 foot distance requirement, and although up-gradient, should be evaluated, and Ms. Sewell of your office, agrees to investigate this matter further and respond accordingly to Mr. Knoll. We similarly will appreciate knowing the status of her findings. The importance of the additional testing required by SCEHD is obvious, for it will, among other things, provide all parties a better idea of quantity levels of groundwater contamination and degree of additional remediation efforts that may be required. As explained, the owner of this shopping center desires to quantify, to the highest extent possible, these two items as a part of its discussions with you regarding your written requests about the Lease. 6. Although it would be most desirable to obtain a "No Further Action" Letter from SCEHD, if an when this is made possible, such letter will also provide the caveat "at this time", according to Ms. Lagorio of