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REGIONAL WATER QUALITY CONTROL BOARD CENTRAL VALLEY REGION SETTLEMENT AGREEMENT ADMINISTRATIVE CIVIL LIABILITY COMPLAINT NO. R5-2005-0528 RODNEY AND GAYLA SCHATZ MOKELUMNE RIM VINEYARDS SAN JOAQUIN COUNTY The Executive Officer of the Regional Water Quality Control Board, Central Valley Region, (Regional Board) and Rodney and Gayla Schatz (Discharger) hereby agree to this Settlement Agreement (Agreement) of Administrative Civil Liability (ACL) Complaint No. R5-2005-0528, dated 1 November 2005. 1. This Agreement is entered into by the Executive Officer and the Discharger to resolve by consent and without further administrative proceedings certain alleged violations of the California Water Code (CWC) and Waste Discharge Requirements (WDRs) Order No. R5-2004-0035. 2. The Executive Officer agrees that full compliance with this Agreement constitutes settlement of ACL Complaint No. R5-2005-0528. ACL Complaint No. R5-2005-0528 alleges that the Discharger failed to comply with the Monitoring and Reporting Program (MRP), allowed the wastewater pond to contain inadequate dissolved oxygen and freeboard, failed to install groundwater monitoring wells in accordance with the WDRs schedule, and did not submit the technical reports required by the Provisions section of the WDRs. ACL Complaint No. R5-2005-0528 proposed an ACL in the amount of$30,000. 3. The Executive Officer and the Discharger believe that settlement of this matter is in the best interest of the people of the State. Therefore, in settlement of ACL Complaint No. R5-2005-0528, the Discharger agrees to comply with the terms and conditions of this Agreement. 4. The Discharger agrees to pay $20,000 to the State Water Resources Control Board Cleanup and Abatement Account (C&A Account) in two payments as follows: the first payment shall be in the amount of$10,000 and shall be paid on or before 20 January 2006; the second payment shall be in the amount of$10,000 and shall be paid on or before 20 July 2006. An additional civil liability in the amount of$10,000 shall be held in abeyance pending submittal of a full year of self-monitoring reports (monthly, quarterly, and annual reports)that fully comply with the requirements set forth in MRP No. R5-2004-0035, and any revisions that are adopted by the Regional Board or Executive Officer. The first Monthly Monitoring Report submitted pursuant to this Agreement shall be the report for the month of January 2006. 5. In consideration of the Discharger's compliance with this Agreement, the Executive Officer agrees not to initiate any other administrative or judicial enforcement actions against the Discharger for the violations alleged in ACL Complaint No. R5-2005-0528. In consideration of the Executive Officer's settlement of ACL Complaint No. R5-2005-0528, the Discharger agrees to toll any applicable statute of limitations. 6. Compliance with this Agreement will be measured by the timely and complete submittal of the Monthly Monitoring Reports, Quarterly Monitoring Reports, Annual Monitoring Report, and - 1 -