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GENESIS ENGINEERING 8 REDEVELOPMENT ` JUN 0 5 2009 ENVIRONMENT HEALTH PERMIT/SERVICES May 29, 2009 Howard F. Hold, P.G. California Regional Water Quality Control Board, Central Valley Region 11020 Sun Center Drive, Suite 200 Rancho Cordova, California 95670-6114 Subject: Review of Site Investigation Report for the DePaoli Property, Holt, California Dear Mr. Hold: On behalf of the William DePaoli Family, Genesis Engineering and Redevelopment, LLC ("GE&R")prepared this response to the RWQCB's April 30, 2009 letter regarding its review of GE&R's Site Investigation Report for the DePaoli Property ("Site") in Holt, California. The Site consists of only the southern 3.5 acres of the former Arcady Disposal facility, a 7.5-acre parcel permitted as a disposal facility for"non-toxic" drill mud from 1960 to 1984. In October 2008, GE&R submitted a Site Investigation Report for the DePaoli property to the California Regional Water Quality Control Board, Central Valley Region("RWQCB"). On April 16, 2009, representatives of GE&R, the RWQCB, and ERM-West, Inc. met to discuss the findings of the Site Investigation, and closure options for the Site. RWQCB's comments on the Site Investigation were subsequently issued in a letter dated April 30, 2009. During our April 16, 2009 meeting,we discussed two important issues related to closure of the DePaoli Site that were not mentioned in your April 30, 2009 letter. Each of these issues is discussed briefly below in order to document our understanding of what was decided in the meeting. In addition, our responses to specific RWQCB comments in the letter are presented in this letter. One issue that was discussed in the meeting was whether California Department of Toxic Substances Control ("DTSC")would continue to be involved in the project. You indicated that the DTSC will want a deed restriction on the property and that Jerry Lyle of DTSC would also want a human health and ecological risk assessment. We discussed this in some detail, as the RWQCB has already said they won't consider the results of a risk assessment as part of the decision-making process for closure. Mr. Lyle indicated in a follow-up discussion with GE&R that the DTSC's primary concern is that if the drill mud is left in place, his department will need assurance from the RWQCB that a land use covenant will be placed on the property to ensure that sensitive uses of the property do not occur in the future. Mr. Lyle indicated that this type of Genesis Engineering&Redevelopment, LLC 351 Ruess Road, Ripon, California 95366 Phone: 209.599.2004 • Fax 209.433.3990