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11.0 OPINION AND CONCLUSIONS CAC has performed a Phase I ESA of the Machado Property located near Manteca, California. The Phase I was performed in conformance with the scope and limitations of ASTM Practice E 1527-13. CAC has, in the course of this inquiry, attempted to identify and review commonly known or reasonably ascertainable information about the Site that is relevant to evaluating the presence of RECs. Any exceptions to, or deletions from, this practice are described in Section 10.0 of this report. A recognized environmental condition (REC) refers to the presence or likely presence of any hazardous substances or petroleum products in, on, or at a property: due to a release to the environment; under conditions indicative of a release to the environment; or under conditions that pose a material threat of a future release to the environment. The following was identified during the course of this assessment: • This assessment has revealed no evidence of recognized environmental conditions in connection with the Site. A controlled recognized environmental condition (CREC) refers to a REC resulting from a past release hazardous substances or petroleum products that has been addressed to the satisfaction of the applicable regulatory authority, with hazardous substances or petroleum products allowed to remain in place subject to the implementation of required controls. The following was identified during the course of this assessment: • This assessment revealed no evidence of controlled recognized environmental conditions in connection with the Site. A historical recognized environmental condition (HREC) refers to a past release of any hazardous substances or petroleum products that has occurred in connection with the property and has been addressed to the satisfaction of the applicable regulatory authority or meeting unrestricted use criteria established by a regulatory authority, without subjecting the property to any required controls. The following was identified during the course of this assessment: • This assessment has revealed no evidence of historic controlled recognized environmental conditions in connection with the Site. An environmental issue refers to environmental concerns identified by CAC which do not qualify as RECs; however, warrant further discussion. The following was identified during the course of this assessment: • There are reportedly two septic systems associated with the residences located at the Site. Although there is no physical or documented evidence of a release to or from these 10-2