SITE INFORMATION AND CORRESPONDENCE

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Mr. Howard Hold August 16, 2004 Page 2 • Shallow Completion: approximately 500 feet south of the south pond (south of Littlejohns Creek). As a result of the opposition by the property owner(Sousa)who owns property where four of the five monitoring wells were initially sited, significant adjustments to the planned drilling program have been required. The new proposed locations are shown on Figure 1. The proposed wells are now sited on land owned by Kruger Foods, Inc. The objectives for monitoring at the new locations include: • M W5A: install a new shallow zone monitoring well at a location upgradient and somewhat cross-gradient of the ponds;determine whether the location of M W5A was impacted by historical operations; assess whether MW5A may, in the future due to the more recent tendency for the ground-water flow direction to be northwesterly, provide a more suitable background monitoring well. • MW6A: install a shallow zone monitoring well downgradient of the ponds. Monitoring results for this location would provide an indication of to what extent impacts have occurred in the vicinity of the ponds at a location further removed from the ponds than existing shallow zone wells(e.g., MW I and MW3A). A monitoring well at the revised location is also anticipated to be beneficial for further assessing corrective action measures and for inclusion in the corrective action monitoring program. • M W6B: install a deep zone monitoring well to the north (e.g.,at a location presently cross gradient of the observed direction of ground-water flow in the deep zone). The proposed location to the north would provide additional gradient control at a location away from facility pumping and world also provide additional information to further refine the apparent limited impact of historical operations on the deep zone. Test Holes Test holes will be drilled at each of the two well locations using mud rotary drilling methods. The first test hole (at the MW613 well location)will be drilled to a depth of approximately 250 feet. The test hole borehole diameter will be 8-3/4 inches;cuttings samples will be collected at 10-foot intervals or when there is a change in lithology. Following drilling, geophysical logs will be run in the borehole for Spontaneous Potential and a Resistivity suite (long and short normal and single point). MW613 will be constructed in the test hole. Final well designs will be based on interpretation of the geophysical log, lithologic data,and prior geologic information for the site. Following the construction of M W6B,the drilling rig will move over approximately 10 feet and drill a 12-1/4-inch diameter borehole to approximately 150 feet for the construction of MW6A. Geophysical logging will not be conducted in the MW6A borehole since the logging of the M W6B borehole should provide adequate definition of subsurface conditions at this monitoring location. Following the construction and development of MW6A and M W6B,the drilling rig will move to the M W5A site. The test hole at this location will be constructed to a depth of about 150 feet. Upon reaching the target depth, a geophysical log will be conducted as described previously for the M W6B site.