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III. SITE CONDITIONS 1. The Site itself is part of the dividing line between Henning Tract and McDonald Tract of McDonald Island. As stated above, the Site occupies an area that used to be part of Whiskey Slough. Over the years the surrounding soils have subsided (due to farming and natural conditions) leaving the old sloughbed higher than the surrounding land. Because of this past relation to the slough, the soil type of the Site is Fluvaquents. Typically this soil has a surface layer of silty clay loam with the underlying layers being sandy loam, silt loam and silty clay. [Attached hereto as Exhibit "C" is the United States Department of Agriculture, Soil Conservation Service - Holt Quadrangle Map and excerpts from the October, 1992, Soil Survey of San Joaquin County.] 2. The soil at the Site is also suspected of having deposits of soil from the neighboring land as the Site was a point at which 1982 flood waters flowed from Henning Tract to McDonald Tract. The neighboring soil on the easterly (McDonald Tract) side is Itano silty clay loam. Permeability of this soil is moderately slow. The neighboring soil on the westerly (Henning Tract) side is Rindge mucky silt loam. Permeability of this soil type is rapid. The Henning Tract soil is commonly known as "peat". This soil has many naturally occurring microbes. Tests have shown the soil to actually act as a purifier as the microbes therein consume contaminants. 3. The water table in the area is directly affected by the tidal pressures exerted by the neighboring Sacramento-San Joaquin Delta waterways. Subsurface water levels vary from approximately 4 to 25 feet below ground surface level. The Owner/Operator does not believe that the depth of materials at the Site reach below the neighboring ground surface level. 4. The Owner/Operator has no evidence that the materials at the Site have contaminated the groundwater. However, appropriate sampling and testing shall confirm 5