SITE INFORMATION AND CORRESPONDENCE

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1881 Rustan Rd/ 1775 W. 11`h St.,Tracy page 2 Gregg Drilling&Exploration Geoservices&ESCNC. In addition to the "perc-tests" and geo-technical work described in the ESCNC report,it appears that soil samples were collected on April 29, 1999 by Gregg Drilling and again on May 12, 1999 by Exploration Geoservices for laboratoryy analyses for petroleum hydrocarbons suspected in the area of the former pipe line right of way. Apparently you were not aware that the permit you thought you were working under was issued to another contractor, good only for the site listed on the permit, and not valid for contamination studies. PHS-EHD has evaluated the ESCNC data submitted and has concluded the following: • Gregg's drilling on April 29, 1999 was not performed under a valid PHS-EHD permit. The$89 permit fee per parcel (two separate addresses) plus $89 penalty for each are now due ($89 x 4=$356). • Exploration Geoservices drilling on May 5, 1999 was not performed under a valid PHS-EHD permit. The $89 permit fee and an $89 penalty fee per parcel are now due ($89 x 4=$356)- A Master File Record{MFR) and the required$234 fee has subsequently been submitted to PHS- EHD for each site, but lists Chevron Environmental Management Company (CEMC) as the "third party billing" entity responsible for payment of fees. The time expended researching ESCNC field work without permits has resulted in 6.3 hours charged to each site (6.3 hours x$78/hour=$491.40 x 2). PHS-EHD has discussed these charges with Katie Hower of CEMC and has determined that the charges are to be billed to ESCNC and not CEMC. PHS-EHD will forward a copy of the dates and charges to ESCNC for payment. PHS-EHD would like to thank you for you cooperation and patience during this verification investigation. If you feel that there are additional facts that may effect our conclusion, please submit the paperwork to Michael Infurna or you may call him at (209) 468-3454. Mr. Infurna may also be contacted via the following e-mail address: Minfurna@phs.hs.co.san=joaquin.ca.us Donna Heran,REHS, Director Environmen tal Health Division Michael J. Infurna Jr., Senior REHS Margaret Lagorio,REHS LOP / Site Mitigation Unit IV Supervisor MI/ c: Earnest S. Pombo- PO Box 805, Tracy,CA., 95378. c: Neil Burns- PO Box 176,Tracy,CA., 95378. c: ESCNC- Gary Pischke, 47853 Warm Springs Blvd.,Fremont, 94539-7400. c: Chevron Envir.Mgmt.Co. - Katie Hower,PO Box 6012, San Ramon, 94583.