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<br /> <br />ESGAR CORPORATION PROPERTY <br />PHASE I ENVIRONMENTAL AUDIT <br />PURPOSE OF REPORT <br />The purpose of this report is to provide a Phase 1 Environmental Audit for property east and west <br />of Holly, Colorado, to be used for bonding purposes for the Division of Minerals and Geology <br />as collateral for the Midwestem Farms mining operation Permit #M-93-059. This property is all <br />in Prowers County, Colorado. This report provides a first level rewnnaissance for environmental <br />- factors, and was performed under a contract with Midwestem Farms, Inc. <br />]nformation gathered for the report was done by site inspection and research of public records. <br />The immediately adjacent properties also received a visual inspection. Photos were taken of the <br />property and surtoundings. <br />This work did not include a subsurface drilling or digging program, soil contamination testing, <br />wntaminate source identification or testing, chemical testing or analysis, or surface and <br />__ groundwater testing. <br />` Please understand that even the most comprehensive site assessment may fail to detect hazardous <br />materials. Therefore, this report may recommend additional services and costs be incurred to <br />more specifically identify any hazardous situations. <br />Also it is understood that other parties who may become involved in this property may have <br />different risk tolerances and require additional or different information then what was prepared <br />for this property owner. Therefore, this report is intended for the exclusive use of Midwestern <br />Farms, Inc. For any use by any other party, Tuttle Applegate, Inc. bears no liability and we <br />request the report not be distributed to other parties without our written permission. <br />Acceptance of this report by Midwestem Farms, Inc. carries with it an indemnification to Tuttle <br />_ Applegate, Inc., and their employees from any liability to public health, safety, and welfare and <br />any possible costs of remedial action to clean up hazardous situations which may be discovered <br />now or at a later date. <br />9 <br />SITE LOCATION <br />• This property is divided into seven parcels. All the parcels are located within Prowers County. <br />_ Six of the parcels are west of Holly, Colorado, and one is to the east. All of the property lies <br />to the north of the Arkansas River. <br />Exhibit A, at the end of this report, contains legal descriptions of all the parcels. Exhibit B is <br />f a location map of the parcels and surrounding areas. <br />~: <br />Access to all of these parcels is fairly easy, as the majority are not fenced and have farm roads <br />leading into them or around their perimeter. <br />1 <br />