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Schemme Specialty Poo& .tc. 06 Sep 2009 Mediation Scheduled for the 15th of this week Attached is a copy of the mediation scheduled for next week that we hope will be enough to convince the mediator and defendants to assist us in paying for the repairs necessary to bring the system into compliance without further delay or possible harm to groundwater. Letter of Violation dated 24 April 2008 1 believe that we immediately cleared up the minor violations including unsubmitted reports and a missing annual report. There does however remain the major issue of high BOD and TSS levels that exceed our WDR. Fortunately, for groundwater, our flows are only about 800 gal/day and the water table is about 140 ft. I was unable to resolve the issues with the contractors and had to resort to the legal systems due to my inability to pay for repairs out of pocket. Unfortunately, the resolution through the legal system has taken much more time than anticipated and I feel that I must share with you as much. I did make you aware that I retained Brown and Caldwell consulting engineers several years ago to and have been working with Robert Beggs, PhD, PE , an environmental consulting firm that has worked with you in the past, to help me prepare the reports required by the Board. I am now going to attach the two technical reports he has prepared that details the problems we are facing. I did not provide this information to you prior upon advice of legal counsel but feel it is in our best interest at this time to be in full disclosure with you. The reports were prepared as confidential were to be used to assist us in resolving these issues with the contractor and installer. Letter of Violations Pertaining to Past Due Fees Again due to extreme financial hardships we have been unable to keep up with our yearly fees. We received the first three years bills at once due to an address error and we have been unable to catch up. There is now a fourth year's invoice that is due. We have been making partial payments and have sent several letters to the fee unit as well as the compliance unit keeping them apprised of our situation. Request to Reduce Frequency of Effluent Analysis from Weekly to Monthly Since we have five years of data that consistently show we exceed our BOD and TSS levels despite our best efforts in housekeeping changes etc, with no affect, we respectfully request that you allow us to reduce this requirement to monthly testing until we can make meaningful changes to our system that would yield different/better results. In other words, we have been spending over $200/month for laboratory analysis that consistently yields the same non-compliant results. Page 3 of 5