SITE INFORMATION AND CORRESPONDENCE FILE 1

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Advanced GeoEnvironmental, Inc. 02 Apri12009 AGE -NC Project No. 00-0769 Ms. Margaret Lagorio Mr. Mike hifurna 1 (� San Joaquin County Environmental Health Department c _ 600 East Main Street APR 0 7 2009 Stockton, CA 95202 ENVIft0!"'?01!"iA (111ErALlH Subject: Quarterly Update - First Quarter 2009 PER MIT "SE RVIUES F'ERNANDO'S PLACE 1201 South Center Street, Stockton, California Dear Ms. Margaret Lagorio: On behalf of Mr. Roger Huckins Jr., former owner of the above referenced property, Aduanced GeoEnvironmental, Inc. (AGE) has prepared this letter to inform the San Joaquin County Environmental HealthDepartment (EHD) no fieldworkwas conducted at 1201 South Center Street, Stockton, California (site) during the first quarter 2009. A quarterly ground water monitoring event was not performed at the site due to the current status the State of California Underground Storage Tank Cleanup Fund (USTCF), which funds the site's environmental cleanup. As you are aware, costs associated with the cleanup effort at the site were reimbursed by the California State water Resources Control Board (SWRCB) under the Underground Storage Tank (UST) Cleanup Fund. However, Mr. Roger Huckins Jr. was recently notified by the UST Cleanup Fund that future reimbursements by the State would be delayed as much as 18 months. Due to the costs of remediation activities (energy and equipment costs) and monitoring activiries at the site Mr. Huckins Jr. has accrued over $46,000 of monitoring. expenses that have not been reimbursed by the UST Cleanup Fund. Additional costs for monitoring and remediation beyond the $46,000, have not been submitted to the SWRCB and cannot be properly reimbursed until the SWRCB finalizes the pending reimbursement. The accrued costs for the quarterly ground water monitoring has caused a great financial hardship on Mr. Roger Huckins Jr., he no longer owns the site and has no capitol from the site. Furthermore, based on the current conditions at the state, it is unlikely that Mr. Huckins Jr. will receive any type of reimbursement from the UST Cleanup Fund before late 2009. Mr. Huckins Jr. does not have the financial capabilities to continue quart erly ground water monitoring. activities at the site unril he can receive reimbursement from the UST Cleanup Fund (i.e. $ 46,000 or more). AGE will continue to explore other financing options to augment the USTCF. One of the most promising financial options is NatLust. Natlust's mission is to provide immediate liquidity to Responsible Party's with approved fund claims where the particular state- administered 837 Shaw Road, Stockton, California 95215 Telephone (209) 467-1006 Fax (209) 467-I L 18