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August 27, 1998: Runkle Canyon_Ramco_Preliminary Site Assessment_82798 – “PRELIMINARY ENVIRONMENTAL SITE ASSESSMENT REPORT FOR PROPERTY TITLE TRANSFER” for LARRY RASMUSSEN et al SPIRIT HOLDING INC. 23120 LYONS AVENUE 5436, NEWHALL CALIFORNIA 91321 performed by REGULATORY AFFAIRS MANAGEMENT COMPANY LLC dba RAMCO Environmental

P. 3/65: “The United States Geological Survey (USGS) delineated Blue-Line surface water courses traversing the property south to north.

P. 5/65: Rasmussen is described as “prospective buyer.”

P. 5/65: “RAMCOs assessment did not include investigation for asbestos containing materials lead in ground or surface water or paint radon PCB polychlorinated biphenyls nor subsurface conditions of groundwater or soil specific to the Site.”

P. 6/65: “It should be noted that typical Preliminary Environmental Site Assessment during the time of this assessment did exclude subsurface exploration or chemical screening of soil and groundwater beneath subject site These data would accurately present evidence of contamination or impairment. Therefore in any study excluding sampling and analysis no statement of scientific certainty could be made or inferred regarding latent subsurface conditions that may have come from either on-Site or off-Site sources.”

P. 13/65: “The file review produced letter dated Sept 10 1984 from the County of Ventura stating that S.P Milling Co. was in violation of letting illegal dumping to occur on the property and that the dumping must be corrected within thirty days This suggests that possible regulated and/or hazardous materials were dumped on Site.”

P. 15/65: “The unsaturated and saturated soil of the area was highly permeable and porous however the upper most saturated zone was estimated to be greater than 30 feet below ground surface. These conditions would enhance chemical migration. Based upon the anticipated flow path of groundwater and no recorded up gradient site of concern nearby contaminant migration from off site sources was considered very low potential threat.”

P. 16/65: “The white fine grain material deposited by the leaching water of the aggregate stockpiles in the material processing area would suggest potential for regulated if not hazardous materials. The fact of equipment operations in the former material processing area has now been established this also presents the potential for hazardous materials releases. The presence of these materials presents potential for environmental risk to Site dwellers soil and possibly surface water.”

[KB Home’s Runkle Canyon development is now called Arroyo Vista at the Woodlands]

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