ARCHIVED REPORTS_2010 ANNUAL REPORT

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Nestle USA, Inc., Ripon, California March 31, 2011 2010 Annual Report 1 INTRODUCTION On behalf of Nestle USA, Inc. (Nestle), Environmental Cost Management, Inc. (ECM) prepared this 2010 Annual Report to summarize the results of groundwater monitoring and remedial activities related to the former Nestle facility, located at 230 Industrial Avenue (the "Site") in Ripon, California (Figure 1). The term "Study Area" refers to a wider area of investigation in the larger Ripon vicinity (Figure 1). Nestle implemented a groundwater monitoring program in early 1987 to monitor concentrations of select volatile organic compounds (VOCs), primarily trichloroethene (TCE), and associated solvent byproducts, cis-1,2-dichloroethene (cis-1,2-DCE), vinyl chloride (VC) ("constituents of concern," or COCs hereafter). ECM conducted the 2010 monitoring, sampling, and reporting activities in accordance with the following directives: • Cleanup and Abatement Order No. R5-2006-0720 (CAO) issued on July 24, 2006 by the California Regional Water Quality Control Board-Central Valley Region (RWQCB); • Monitoring and Reporting Program (MRP) No. R5-2005-0829 issued on July 21, 2005; and • MRP No. R5-2010-0810, dated April 19, 2010a. Nestle has completed CAO Required Actions 1 through 14, and 24 through 39 and the associated documents. Nestle awaits approval of items 5, 8, and 13, and will complete the remaining Required Actions (Items 15 through 23) within the specified timeframes, contingent upon RWQCB approval of the Feasibility Study (FS) report submitted on January 28, 2011. In addition to this annual report, ECM submitted three quarterly site status reports and 12 monthly performance monitoring reports for the groundwater extraction and treatment systems. The purpose of this 2010 Annual Report is to: 1) Provide an update to key activities that occurred in 2010; 2) Provide detailed information about the monitoring program and investigation data obtained in 2010; 3) Provide an interpretation of the 2010 investigation and monitoring data; and 4) Present recommendations and planned activities for 2011. For a summary of the facility history, hydrogeology of the Study Area, release information, historical soil, soil vapor, and groundwater investigations, and remedial actions, refer to Appendix A. The main sections of this report are as follows: Section 1 Introduction Section 2 Key Activities in 2010 Section 3 Groundwater Monitoring Section 4 Ongoing Remedial Action Section 5 Conclusions Section 6 Recommendations a ECM conducted field activities in accordance with the revised 2010 MRP after April 30, 2010. 1