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NEIGHBORHOODS D,K,L, AND TOWN CENTER PHASE I ENVIRONMENTAL SITE ASSESSMENT REPORT AND A PARTIAL RESPONSE TO MOUNTAIN HOUSE MASTER PLAN CHAPTER SIX h MOUNTAIN HOUSE,SAN JOAQUIN COUNTY CALIFORNIA EXECUTIVE SUMMARY. November 30,2004 This Phase I Environmental Site Assessment was performed by Condor Earth Technologies, Inc. (Condor) at the request of a confidential client (Client). The assessment was performed for Neighborhoods D, K, L, and Town Center in Mountain House, San Joaquin County, California. The Site includes parcels and portions of parcels designated by Assessor Parcel Numbers (APNs) 209-030-03 and —04; 209-040-09, -14, and —17; 209-050-09; 209-170-02; and 209450-11, -12, and -13, comprising approximately 1,195 acres that are under consideration by the Client for residential development. The Phase I ESA was performed in accordance with the guidelines set forth in Practice E 1527-00, Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process, published in May 1993 (Revised 2000) by the American Society for Testing and Materials (ASTM) and , in accordance with the prevailing standard of care for completing such assessments in California at this time. The purpose of the ASTM Phase I Environmental Site Assessment (ESA) is to conduct an appropriate inquiry into previous ownership and uses of the property to help in partially satisfying the innocent landowner defense' to Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) liability and to document those conditions discovered during the inquiry that are "potential environmental conditions that could materially impact the operation of the business associated with the parcel of commercial real estate" (ASTM E 1527-00, Section 5:5). Any exceptions to, or deletions from, this practice are notedain Section 10.0 of this report. All opinions expressed herein are based upon the evidence reviewed and the assumptions made during the assessment. It is Condor's opinion that the current and historical application of agricultural chemicals for agricultural .purposes constitutes a recognized environmental condition pursuant to the ASTM E 1527-00. Review of records and interviews indicate that agricultural chemicals have been applied to the Site properties. Agricultural chemicals, including pesticides, have been extensively used in the Central Valley and are likely residual in the soil. The pesticide residue assessments are documented in the Neighborhoods D, K, and L and Town Center Phase 11 ESA, dated November 30, 2004 prepared by Condor. The results of this testing found detectable pesticide or herbicide residue in the samples at or above the atory-detec. 'on limits. It is Condor's opinion that the obsery d 55-gallo drums in Neighborhood D coolpossibly contain petroleum hydrocarbon products and/or agricul chemicals and constitutes a recognized environmental. condition pursuant to the ASTM E 152 0. e possibility exists for contamination omxe�e and/or ' use to the soil and/or groundwater in Neighborhood D. F It is Condor's opinion that the two wastewater treatment reservoirs located in the southeastern portion of Neighborhood L.constitute a recognized environmental condition pursuant to the ASTM E 1527-00. The M ` 1.Terms in italics are defined by ASTM in Practice E 1527. See'Glossary of Terms and Acronyms(Appendix I). i CONDOR