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Phase I Environmental Site Assessment HOWARD LAND COMPANY PROPERTY 161 East Transportation Drive, French, California 1 .0. INTRODUCTION AGE has been retained by Mr. Lloyd Farmer to perform a Phase I Environmental Site Assessment (Phase 1) of the property located at 161 East Transportation Drive , French Camp , San Joaquin County, California (hereafter referred to as subject property or property) . The Phase I was performed in conformance with the scope and limitations of ASTM Standard Practice E1527- 13 and the United States Environmental Protection Agency (USEPA) Standards and Practices for 'All Appropriate Inquiries (AAI )' (40 CFR Part 312) , The Phase I is designed to provide the Client (user) with an assessment concerning environmental conditions (limited to those issues identified in the report) as they exist at the subject property. 1 . 1 . PURPOSE The purpose of the Phase I is to identify and assess environmental characteristics of the subject property that could lead to liability in the event of ownership , that could have a potential impact on property value or that could impact the present or future use of the subject property. The purpose of ASTM Standard Practice E1527-13 and USEPA AAI is to define good commercial and customary practice for conducting an environmental site assessment of a parcel of commercial real estate with respect to the range of contaminants within the scope of the Comprehensive Environmental Response Compensation and Liability Act (CERCLA) and petroleum products . As such , this practice is intended to permit a user to satisfy one of the requirements to qualify for the innocent landowner, contiguous property owner, or bona fide prospective purchaser limitations on CERCLA liability : that is , the practice that constitutes all appropriate inquiries into the previous ownership and uses of the property consistent with good commercial and customary practice as defined at 42 U . S . C . §9601 (35) ( B) . An evaluation of business environmental risk associated with a parcel of commercial real estate may necessitate investigation beyond that identified in this practice (based on ASTM Practice El527- 13) . The goal of ASTM Standard Practice El527- 13 is to identify recognized environmental conditions (RECs) in connection with the subject property. A REC is defined as the presence or likely presence of any hazardous substances or petroleum products in , on , or at a property: ( 1 ) due to release to the environment; (2) under conditions indicative of a release to the environment; or (3) under conditions that pose a material threat of a future release to the environment. Conditions that are determined to be de minimis, which do not present a threat to human health or the environment and that generally would not be the subject of an enforcement action if brought to the attention of appropriate governmental agencies , are not recognized environmental conditions . Advanced GeoEnvironmental, Inc.