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GES'"r2 GENESIS ENGINEERING&REDEVELOPMENT Mr. Steve Coldani March 31, 2009 Page 2 Laboratory reports are provided in Attachment A. Laboratory data are summarized in Tables 1 and 2, and on Figure 2. Findings The results of the groundwater sampling confirm that the groundwater beneath Lima Ranch is impacted with high levels of nitrate—at concentrations well above drinking water standards. The data further demonstrate that the source of this nitrate is the liquid and solid wastes stored in the waste lagoons and ditches at Lima Ranch as well as the solid and liquid wastes that are applied to the croplands surrounding the Ranch. The data summarized in Tables 1 and 2 and on Figure 2 confirm that(i)high levels of the reduced forms of nitrogen(ammonia) are present in the waste lagoons and ditches and (ii) high levels of the oxidized form of nitrogen (nitrate) are present in the groundwater beneath the croplands. There is, at least,three times as much nitrogen in the reduced form in the pond and ditch as there is the oxidized form in the groundwater. In other words,the mass of nitrogen present in the pond and ditch water is more than adequate to produce the nitrate found in the groundwater. A trend of decreasing ammonia concentration, with a concurrent increase in nitrate concentration,moving hydraulically down-gradient(east) from the waste lagoon across the Ranch is clearly demonstrated on Figure 2. Ammonia was detected at concentrations of: 1. 330 parts per million ("ppm") in the lagoon sample (identified as"Pond" on Figure 2); 2. 19 ppm in the groundwater sample from boring B-2 located adjacent to the pond; and 3. 1 ppm in the sample from boring B-6. Nitrate was not detected in the sample collected from the waste lagoon and was detected at a concentration of 1. 5.3 ppm in the samples from B-2 adjacent to the lagoon; and 2. 91 ppm further down-gradient,to the cast in the groundwater sample collected from Boring B-6. These results are consistent with groundwater contamination by both application of solid and liquid waste to the surface of the cropland and seepage of liquid waste from the waste lagoons and ditches.