March 1, Mr. Russell Walls, Senior Engineer Regional Water Quality Control Board, Central Valley Region 1685 E Street Fresno, CA 93706

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1 March 1, 2012 Mr. Russell Walls, Senior Engineer Regional Water Quality Control Board, Central Valley Region 1685 E Street Fresno, CA Subject: Supply Well IN 1 Destruction Evaluation Update Hilmar Cheese Company, Hilmar, California Dear Mr. Walls: On behalf of the Hilmar Cheese Company (HCC), Jacobson James & Associates, Inc. (JJ&A) provides this update on the evaluation of IN 1 destruction with explosives. This update provides a summary of field activities and transmits the results of the vibration monitoring survey conducted on February 2, 2012 at the HCC facility. The survey was conducted by Norcal Geophysical Consultants, Inc., (Norcal). The survey was performed in accordance with the November 22, 2011 IN 1 Well Destruction Work Plan Addendum. During the week of January 23, 2012, JJ&A supervised the installation and logging of a soil boring (SB 10) in the vicinity of Supply Well IN 1 (as shown on Figure 1, attached). An electronic log (e log) was conducted at this location using sub surface geophysical tools. Parameters measured included the 16 and 64 inch normal resistivity and single point and spontaneous potential e logs as illustrated on the attached Welenco Electric Gamma Ray Log. Based on this data, and in consultation with the Regional Water Quality Control Board, the Corcoran Clay was determined to be present at a depth of approximately 115 feet below grade surface (ft bgs). A second soil boring (SB 12) was completed up gradient of IN 1 for use as a test hole. The location of soil boring SB 12 is on Figure 1. Upon reaching a total depth of 245 ft bgs, a detonation contractor deployed prima cord with 150 grain boosters at 10 ft intervals between 115 and 245 ft bgs. A cement slurry was then placed into the boring (from the bottom of the hole up). The charges were then detonated to destroy the boring. Norcal monitored the vibrations resulting from the explosion and provides the results in the attached report entitled: Vibration Monitoring Survey, Hilmar Cheese Company, dated February 27, 2012 ( Vibration Report ). The resultant vibrations were measured at levels below the damage threshold indicated on the United States Bureau of Mines (USBM) R18507 and Office of Surface Mining Destruction of IN 1 Transmittal_2012Mar01_final

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3 C:\GIS\Hilmar\Ad-hoc\IN1\Figure 1 IN-1 Vicinty.mxd LEGEND B WELL TO BE DESTROYED ESTIMATED SOIL BORING LOCATION HCC FACILITY S-2 EXTENT OF HCC FACILITY AND FORMER PRIMARY LANDS CURRENT REUSE REA SB-12 S-64 B IN-01 SB-10 LANDER AVENUE AUGUST AVENUE SCALE IN FEET HILMAR CHEESE COMPANY HILMAR, CALIFORNIA FIGURE 1 IN-1 VICINITY BORING LOCATIONS PROJECT NO. 02.HCC.2012 DATE DRAWN BY APPR. BY 2/23/12 DPG TJ

4 welenco 5201 Woodmere Drive, Bakersfield, CA California Contractor's License No ELECTRIC - GAMMA RAY LOG FILING NO. COMPANY Gregg Drilling WELL SB-10 FIELD Hilmar STATE California COUNTY Merced LOCATION: Lander and August at Cheese Factory OTHER SERVICES: None JOB NO. SEC: 10 TWP: 6S RGE: 10E LAT.: 37 25' 11.6'' LONG.: ' 7.5'' MERIDIAN.: Mt. Diablo Permanent Datum: Ground Level, Elev. Ft. Log Measured From: Ground Level, 0 Ft. Above Perm. Datum Drilling Measured From: Ground Level Run Date Depth-Driller Depth-Logger Top Logged Interval Btm. Logged Interval Casing-Driller Casing-Logger Bit Size Time On Bottom Type Fluid In Hole Density Viscosity One Jan. 24, N/A N/A 4 10:30 AM Bentonite Elev.: K.B. D.F. G.L. Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft Ft In In In In Ft. Ft. Ft. ph Fluid Loss Source of Sample Measured Temp. Measured Temp. Measured Temp. Source Rmf Rmc BHT Time Since Circulation Max. Rec. Temp. Van No. Location Recorded By Witnessed By Tank 75 F 75 F meas.5 N/A L-23 Bfld Dan Ihde Leon Gearhart ml ml ml F Hr Hr Hr Hr F F F F

5 Miscellaneous Information A recreational GPS accurate to +/- 45 feet set for Datum NAD27 was used to calculate Latitude, Longitude & Elevation values. The Section, Township, and Range then determined using the TRS program (TRS accuracy is not guaranteed). The TRS program converts Latitude and Longitude to Section, Township, and Range. The NOTICE at the bottom of this heading also applies. Drilled By: Gregg Drilling NOTICE All interpretations are opinions based on inferences from electrical and other measurements and we do not guarantee the accuracy or correctness of any verbal or written interpretation, and we shall not, except in the case of gross or willful negligence on our part, be liable or responsible for any loss, costs, damages or expenses incurred or sustained by anyone resulting from any interpretation made by one of our officers, agents or employees. These interpretations are also subject to our General Terms and Conditions as set out in our current Price Schedule. welenco, inc. January 24, 2012

6 Gregg Drilling SB-10 Jan 24, 2012 Job Ticket: ELECTRIC - GAMMA RAY LOG DEPTHS Single Page 0 64 Inch Normal (ohmmeter²/m) x Inch Normal (ohmmeter²/m) 100 < - S.P. (15 mv/div) + > 0 Gamma Ray (api) Inch Normal (ohmmeter²/m) x Inch Normal (ohmmeter²/m) Single Point (ohms) welenco CA. Contractor's License: Phone: (800) Fax: (661) welenco@welenco.com Web: (Prepared with Log Print, a professional software application developed by welenco, inc.)

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