SITE INFORMATION AND CORRESPONDENCE

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Jennifer A. Scott, Esq. • • August 27, 2009 Page 3 of 4 2. The VCA shall propose a network of monitoring wells, including the wells already installed by your client, as well as additional wells as depicted on Figure 1 attached hereto. Such wells shall be monitored on a quarterly basis for constituents including nitrate- N, nitrite-N, ammonia, ammonium, and total kjeldahl nitrogen. 3. The VCA shall provide that your client's primary waste impoundment will be drained and abandoned (or re-engineered) such that its use no longer represents a conduit to groundwater. 4. The VCA shall provide for: (A) The performance of a domestic well survey to be conducted within a one-mile radius of the Lima Ranch; (B) Sampling for nitrate at domestic wells identified within the survey zone; and (C) An alternative water supply for those residences with domestic wells within the survey zone that exceed the Maximum Contaminant Level for nitrate. 5. The VCA shall propose an investigation into whether any of the ditches or trenches that receive and/or convey animal wastes at the Lima Ranch are a source of groundwater contamination. 6. The VCA shall propose an investigation into whether the dry manure storage area is a source of groundwater contamination. 7. The VCA shall propose an investigation into whether the spreading of animal wastes upon cropland at the Lima Ranch is a source of groundwater contamination. Subject to your client's agreement to enter into a VCA as described above, and subject to DTSC's acceptance of a VCA with terms and conditions that are not less stringent than the foregoing, my client would be prepared to dismiss the pending lawsuit. Thank you for your attention to the foregoing, and we respectfully request a response within 20-days of the date of this letter. Very tr7"', ID . IS LA DRI:mdr