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Proposal 10-005 Phase II ESA and Remedial Action/San Joaquin County,CA October 14,2005 EVALUATION OF BIO-REMEDIATION OF DIELDRIN-IMPACTED SOIL Once the lateral and vertical extent of the organochloride pesticide contamination is known on the property, TERRASEARCH, inc. can estimate the quantity of impacted soil for remediation. A new and innovative method for remediating soil contaminated by chlorinated hydrocarbons (including PCBs, organochloride pesticides and volatile organic compounds) is available for private use by Resource Technologies Environmental, Inc. (RTE) of North Carolina. Soil contaminated with chlorinated hydrocarbons damages the native bacteria populations by removing and/or damaging the protein responsible for metabolically breaking down fuel sources, s' as hydrocarbons into inert substances. However, this new method, known as Factor, is a laboratory manufactured site- specific protein which reacts with the native bacteria to replace the damaged and/or removed initial protein within the native bacteria species. The Factor enhanced bacteria then metabolically transforming chlorine attached to hydrocarbon molecules into inert substances. Factor is non- hazardous and is applied with other soil amendments, such as lime, organic matter (manure, charcoal, etc.) and fertilizers. Once thoroughly mixed in the soil, the soil is irrigated for approximately two months at least twice a day during warm days and every other day during cooler days until confirmation sampling indicates that the chemicals of concern have been metabolized. The initial cost for determining the native bacteria, soil chemistry and bio-chemically synthesize Factor specifically for the site is $25,000.00. Once the Factor is synthesized, a separate cost proposal will be prepared for you for treating the subject site,which will be based on the quantity of soil impacted by organochloride pesticides. SCHEDULE OF PERFORMANCE The Phase II Environmental Site Assessment can be prepared within two months of your written authorization. At your request, a Preliminary Time Schedule showing anticipated completion times for each task is provided below. Task Start Date Completion Date Phase II ESA Pesticide Phase II ESA November 1, 2005 November 15, 2005 Pesticide Storage ESA October 20,2005 October 28, 2005 Debris-Pile/Sold Waste ESA October 20, 2005 October 28,2005 Petroleum Pipeline ESA November 1, 2005 November 8, 2005 Final Phase II ESA Reports November 15, 2005 November 29, 2005 Evaluation of Bio-Remediation Sample for Bench Study October 17, 2005 November 22, 2005 All laboratory analyses will be performed on a standard 5-day turnaround basis. TERRASEARCH, inc. Page 6