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LSurface &Subsurface Contamination Report Page 4 Sandhu Property LProject No. 522.1 March 9,2006 Conclusions Present Use of Property The current and recent uses of the Property as agricultural land to grow hay `' appear unlikely to have impacted the Property with a Recognized Environmental Condition (see Section 1.0 for a definition). Reportedly, no agricultural chemicals have been applied to the land in some years. Past Use of Property .. Past uses of the Property as agricultural land and as a prison camp appear unlikely to have impacted the Property with a recognized environmental condition, except as follows: • There may be low concentrations of residual pesticides from past use of the Property as an almond orchard. • There would seem to be little likelihood that the latrines / septic tanks from the former prison camp have materially impacted the property with nitrates. Environmental Conditions Impacting Site from Off Site Properties Based on the results of the EDR State and Federal environmental database search, and on a review of documents pertaining to nearby remedial investigations, and on the site reconnaissance, it does not appear likely that any off-site facilities have impacted the Property with a recognized environmental condition except as follows: • It is virtually certain that the shallow groundwater under the southern part of the Property has been impacted by nitrates, ammonium and volatile organic compounds sourced from the adjacent Western Farm Service facility. `' • It is unlikely but possible, that the shallow groundwater under the Property may, in the future, become impacted by crude oil or diesel hydrocarbons sourced from 35275 S. Welty Road. Recommendations ` We have performed a Surface and Subsurface Contamination study of the Sandhu Property, Welty Road at Highway 132, Vernalis CA (APN No.: 255-180- 015). Based on the conclusions set forth above Geo-Phase Environmental Inc. recommends the following additional work to investigate or mitigate environmental conditions associated with this Property: L 2937 Veneman Ave.,#B240 Geo-Phase Environmental Inc. Phone: (209)569-0293 Modesto, CA 95356 Fax: (209) %9-0295 L