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KLEINFELDER 2 INTRODUCTION Eli 2.1. PURPOSE Kleinfelder performed a site reconnaissance update of the subject property. The update was performed at the request of Golden State Investments Il, LP, as an f addendum to Kleinfelder's ESA for the subject site, dated June 1, 2005. It is our ry understanding that this report will assist the client in recognizing current on-site environmental conditions compared to those noted in' our prior report. Kleinfelder performed this site reconnaissance update in general accordance with the site reconnaissance portions of the American Society for Testing and Materials (ASTM); y Standard Practice for Phase I Environmental Site Assessment Process E1527-00 and in accordance with our Proposal (File No. 02001 P,ROP.ENVIST06P340), dated October 3, 2006. The purpose of this update is to assist the client in recognizing environmental conditions noted on the site compared to those on-site concerns noted in our prior report. A recognized environmental condition is defined: by the ASTM standard as "the presence or likely presence of hazardous substances or petroleum products on a property under conditions that indicate an existing release, a past release, or a material threat of a release of any hazardous substances or petroleum products into structures on the property or into the ground, groundwater or surface water of the property." The term includes hazardous substances or petroleum products even under conditions in compliance with laws. 2.2. DETAILED SCOPE-OF-SERVICES The following sections describe Kleinfelder's work scope: • Chapter 2, Introduction, includes a discussion of the purpose/reason for performing the Site Reconnaissance Update, ;;significant assumptions (e.g. property boundaries if not marked in the field); limitations, exceptions, and special terms and conditions (e.g. contractual); and user reliance parameters. • Chapter 3, Site Setting, is a compilation of information concerning the site location, legal description (if available), current and . proposed use of the subject site, a description of structures and improvements on site at the time of Kleinfelder's assessment, and current uses of adjoining properties. Chapter 4, Site Reconnaissance, describes Kleinfelder's site observations during the site reconnaissance. The methodology used and limiting conditions are described. 76114.P01/STO6R1065/JCE:Iv Page 2 of 18 ©2006 Kleinfelder, Inc. October 19,2006 I