SITE INFORMATION AND CORRESPONDENCE

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Thrifty Oil Company 1250 N. Wilson Way Page 3 of 3 The gradient has a profound effect on capture zone geometry and must be taken into account to properly design a groundwater extraction system. EHD disagrees with TOC's contention that the most recent gradient data should be used to calculate the `stagnation point' as the gradient data presented by TOC has been highly variable over time and as any remediation system must be designed to be effective under variable gradient and groundwater flow directions. EHD notes after a partial review of reports that TOC has reported gradients on the site as high as 0.89. EHD has not verified or recalculated any gradient data presented by TOC. As to the work plan itself, The work plan is adequate and necessary [H&S 25299.37, subd(c)(3)] and is approved with the above noted conditions and work plan comments properly addressed. Please submit a Well Permit Application Form and $89 per parcel prior to scheduling a drilling date for the CPT work. For work done in the city right of way, EHD will require a copy of the City of Stockton encroachment permit(s) prior to issuing our permit(s). You should contact George Montrose at the city's "Permit Center" at (209) 937-8633 for encroachment permit requirements. EHD advises that the process to obtain a city permit can take a considerable amount of time with numerous submittals potentially required. EHD strongly recommends that TOC start the process immediately. Thank you for your cooperation in monitoring and evaluating your remedial efforts at this site. Please continue to address your submittals to Michael Infurna and you may either phone him at (209) 468-3454, or contact him by electronic mail at minfurna@sjcehd.com. Donna Heran, RENS, Director Environmental Health Divisi n Michael J. Infurna Jr., Senior RENS Nuel C. Henderson Jr. RG LOP 1 Site Mitigation Unit IV LOP 1 Site Mitigation Unit IV MI/ c: CVRWQCB —James L.L. Barton, Sacramento. c: SWRCB-CUF — Marc Owens, Sacramento.