ARCHIVED REPORTS_2010 ANNUAL REPORT

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Nestle USA, Inc., Ripon, California March 31, 2011 2010 Annual Report capture analysis, the 2011 Revised FS, and the closure of wells VE-4, VE-11, and VE-12 are presented in separate reports, as referenced. 2.1 WATER REPLACEMENT CONTINGENCY PLAN Nestle implemented the following activities as part of the WRCP: 1. Nestle submitted the final 2010 WRCP' to the RWQCB, which supersedes the 2007 WRCPZ. The 2010 WRCP defines well types and well classifications, and clarifies the regulatory limits, the timing for data review, and response action plans. It also addressed the RWQCB's comments to the earlier submittal3. 2. Nestle has taken proactive measures to review the monitoring data, as it is received, for wells considered "priority wells" in terms of potential COC impacts. This process helps in quickly determining any applicable change in the status of these wells based on the well categories° described in 2010 WRCP. ECM performs an initial review of analytical data within one business day of receipt of the laboratory reports for all priority wells defined in Section 4 of the 2010 WRCP. There were no changes to the status for any of the priority wells in 2010. 3. The replacement well at 5725 Hall Road was connected to the residence through the treatment system in April 2010. Although bi-weekly monitoring shows concentrations of COCs in the replacement well are not above the reporting limits, the water from the replacement well continues to be treated at the well owner's request. 4. During a field reconnaissance to gather more information on wells within the City of Ripon, ECM discovered two active domestic wells at 802 Vera Avenue and 1051 Robert Avenue, potentially located within the TCE plume boundary. The following describes the course of action following the discovery. • ECM received water sample results from the well at 802 Vera Avenue on August 11, 2010 confirming the presence of COCs above California Maximum Contaminant Levels (MCLs). The resident of 802 Vera Avenue was provided bottled water on August 12, 2010 and arrangements were made for continued delivery of bottled water to the residence. A GAC wellhead treatment system was installed on September 27, 2010. • Results from the water sample from the well at 1051 Robert Avenue did not contain concentrations of COCs above the California Public Health Goals (PHGs) or MCLs. The well is now monitored per the WRCP. 5. ECM continued monitoring the wellhead treatment system at the impacted well located at 7501 Kiernan Avenue (south of the Stanislaus River) twice per month. Nestle continued supplying bottled water to this home. 6. ECM continued sampling ten domestic wells and one irrigation well located south of the Stanislaus River in accordance with the MRP. The analytical results from these sampling events were sent to the respective property owners following the receipt of laboratory results. Samples from all ten domestic wells have been non-detect for COCs since March 2005. ° A well category is defined by the COC concentration in the well. A well is threatened, if a COC is present at or above its PHG or MCL, whichever is lower. A well is impacted, if a COC is present above its California MCL or above its PHG for 6 monitoring events out of a 12-month period. 3