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� Apache Plastics 1Q 2002 QMR Page 2 Petroleum hydrocarbons were detected in soil samples collected from borings B-1, VEW-1, MP-1, and MP-2 Dissolved petroleum hydrocarbons were detected in samples collected from monitoring wells MW-1 and MW-5, and in vapor extraction well VEW-1 In June 1994, a soil vapor extraction (SVE) remediation system was installed The system is comprised of an internal combustion engine with catalytic converter and associated filters, controls, and piping Vapor extraction wells VEW-1 and VEW-2 are manifolded to the SVE system The system operated continuously from July 1994 to December 1996 The system operated intermittently during the first quarter 1997 due to mechanical problems EMCON submitted a Case Closure Report (July 17, 1997) that included estimates of remaining petroleum hydrocarbon mass in soil and groundwater, and recommended case closure under the low risk criteria After reviewing the report, San Joaquin County PHS/EHD requested additional vertical assessment of soil and groundwater In February 1999, EMCON directed the installation of onsite monitoring wells MW-8 and MW-9 to a depth of approximately 105 feet bgs Dissolved petroleum hydrocarbons were detected in groundwater samples collected from monitoring wells MW-8 and MW-9 First encountered groundwater beneath the site has ranged from 68 to 44 feet bgs Previous consultants have calculated groundwater flow directions to be south and east, with the predominate flow direction toward the southeast It is our understanding, based on conversations with San Joaquin County PHS/EHD, that first encountered groundwater in the area of the site was recorded as low as 110 feet bgs in 1979 A work plan to conduct additional soil and groundwater assessment activities was submitted to San Joaquin County PHS/EHD on December 3, 1999 The work plan was subsequently approved Stratus obtained one onsite and two offsite access agreements and a revocable encroachment permit from the City of Stockton prior to initiating field work Between February 5 and March 12, 2001, Stratus oversaw Gregg Drilling and Testing, Inc of Martinez advance 13 cone penetration test (CPT) and direct push soil bonngs and dnll and install 3 groundwater monitoring wells (MW-10 through MW-12) A report documenting the findings of this investigation was submitted on July 27, 2001 In a letter received March 1, 2002, San Joaquin County PHSIEHD requested that a work plan to conduct an additional environmental investigation be prepared The letter also requested abandonment and replacement of specific wells, completion of a water supply well survey within a 2,000-foot radius of the site, and performance of a feasibility study to evaluate groundwater remediation alternatives Stratus submitted a Work Plan for Additional Site Assessment on April 9, 2002 San Joaquin County PHS/EHD, in response to the work plan, requested a site conceptual model and an addendum to the work plan presenting the rationale for the proposed scope of work GROUNDWATER GRADIENT AND DIRECTION Second quarter 2002 groundwater levels were measured on May 20, 2002 using an electronic sounding device, and recorded on the field data sheets presented in Appendix A Table 1 presents historic and second quarter 2002 groundwater elevation data Groundwater P\Apache Plastics\Quarterly reports120021Apache_2Q02 doc