SITE INFORMATION AND CORRESPONDENCE

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S.41 Ultramar Ultrarnar Inc. P 0. Box 466 525 W Th rd Street Hanford. CA 93232-0466 (209)582-0241 February 11, 1991 Mr. Quentin Kirsch 190 East Amber Way Hanford, California 93230 SUBJECT: ENVIRONMENTAL INVESTIGATION FOR PROPERTY LOCATED AT 3300 CALIFORNIA Dear Mr. Kirsch: Telecoi 209-584-6113 Credit & Wholesale 209-51 Administrative 209-583-3302 Information Services 209-583-3358 Accounting 6,' t. q lc AND MONITORING" -RESPONSIBILITIES WATERLOO ROAD, STOCKTUN, In response to your telephone call of February 5, 1991, and the letter requesting further environmental investigation from San Joaquin County, we have researched the property lease agreement. Please note that in March of 1987 you contracted with Applied GeoSystems to perform an investigation at the site involving the drilling and construction of four ground -water monitoring wells. This investigation showed nondetectable to low levels of hydrocarbon in the soil and water beneath the site. However, San Joaquin Public Health Services is now requiring that the wells installed at the property be monitored on a quarterly basis. We feel that you are obligated, under the terms of the lease, to perform this quarterly well monitoring. Specifically, Section X UNDERGROUND TANKS, subsection B, of the lease reads: However, LESSEE shall not be responsible for any cost or damages resulting from any leaks from the underground facilities nor shall LESSEE be responsible for any repairs to the underground facilities, except that LESSEE shall pay the first five hundred dollars ($500.00) for any such repairs. The contamination, although very minor, was found in monitoring wells constructed at your expense to evaluate the condition of ground water beneath the property which may have been impacted by leaks from the underground facilities. As the lease states, the costs to monitor these wells are the responsibility of the lessor. BEAi : N A Member of the Ultramar Group of Companies Al Quality and Service