**Underground Storage Tank Cleanup Fund**

**Pay For Performance**

**Condition of Payment**

  ---------------------- ------------------------------- -----------------
  Claim Number:                                          

  Claimant:                                              (the "Claimant")

  Site Address:                                          (the "Site")

  Agency Overseeing                                      (the "Regulator")
  Corrective Action:                                     

  Agency Representative:                                 

  Consultant:                                            (the
                                                         "Consultant")
  ---------------------- ------------------------------- -----------------

**1. Acceptance of Condition of Payment.** To expedite site remediation
and reimbursement of eligible corrective action costs and in
consideration of participating in this Pay For Performance pilot
program, the Claimant agrees to perform corrective action at the "Site"
in accordance with the terms and conditions set forth in this "Condition
of Payment" and Attachment A, "Regulatory Requirements." Claimant's
signature herein constitutes an acceptance of this Condition of Payment.
Claimant's signature shall also signify that: (1) Claimant concurs that
site characterization is complete within the "Area of Concern," as
defined in Figure 1; (2) Claimant shall bear all costs and expenses
associated with any additional Site investigation to optimize a
treatment system or to determine the cause of a failed treatment system
without a right of reimbursement from the Underground Storage Tank
Cleanup Fund (the "Fund"); and, (3) Claimant agrees to be responsible
for the remediation of all petroleum contamination within the Area of
Concern regardless of whether the contamination was identified during
the site characterization. The Fund has concluded that the payments
associated with achieving the Remediation Milestones, described in
Sections 4 and 15 below, constitute reasonable and necessary costs for
corrective action. Acceptance of this Condition of Payment does not
waive the right of the Fund or any existing or future regulatory
authority to take any action against the Claimant, including enforcement
action, with respect to the Site.

**2.** **Remediation Target Levels.** The Remediation Target Levels are
the concentrations to be achieved for specified chemicals ("Chemicals of
Concern," or "COCs"). These COCs and their respective concentrations are
listed in Table 1 of Attachment B, "Payment Schedule." The chemical
concentrations shown are identified as "Preliminary Active Remediation
Goals" ("PARGs"), which are further described in Attachment A, Section
2. However, the achievement of PARGs does not guarantee that the
Regulator will necessarily determine that Site closure is appropriate or
that no further action is required.

**3. Payment Terms.** The Claimant agrees that the total fixed price
contract amount for this Condition of Payment is the amount specified in
Attachment B, Section 1. The Fund shall make payments to Claimant when
the Fund, after consultation with the Regulator, has determined that the
Remediation Milestones described in Section 4 below have been achieved.
Remediation Milestone Payments shall be made pursuant to the schedule
described in Section 15 below.

4.  **Remediation Milestones.** Remediation Milestones shall be
    determined based upon the percentage of contaminant reduction
    achieved in specified monitoring wells from measured Baseline Data
    levels. The procedure for calculating the percentage reduction is
    shown in the example provided in Attachment C. The Baseline Data and
    the monitoring wells are further described below in Sections 5, 8,
    and 9. The Fund agrees to authorize payments in accordance with the
    procedures set forth in Section 15 below. If the Fund, after
    consultation with the Regulator, concludes that a Remediation
    Milestone has been attained, then the Fund will reimburse the
    Claimant the percentage of the total fixed price that corresponds to
    the Remediation Milestone attained. If the Fund, after consultation
    with the Regulator, concludes that a Remediation Milestone has not
    been attained, then the Claimant shall not submit an invoice for
    that Remediation Milestone until the Claimant has demonstrated
    attainment of the Remediation Milestone to the satisfaction of the
    Fund. The Claimant may request that the Fund Manager or the Division
    Chief review any Fund decision of non-attainment of Remediation
    Milestones by following the decision review procedures set forth in
    Article 5 of the Fund regulations.

**5. Baseline Data.** The Baseline Data for this Condition of Payment
shall consist of the results of a Baseline Sampling Event of the wells
identified in Attachment A, Section 3. The Baseline Data shall be used
as the reference for measuring reductions in the concentrations of the
COCs. The Baseline Sampling Event shall be conducted no more than thirty
(30) days after the Claimant's acceptance of this Condition of Payment.
All sampling and sample handling shall be conducted in accordance with
the directives issued by the Regulator. Split sampling, as described in
Section 11 below, is required for this Baseline Sampling Event. The
Claimant's results from the Baseline Sampling Event shall be provided to
the Regulator and the Fund within fifteen (15) days of the Baseline
Sampling Event. As explained further in Section 6 below, "Start Work
Notice," the Baseline Data shall be approved by the Fund, after
consultation with the Regulator, before startup of the remediation
system. Alternatively, if the remediation system is already operating,
then the Baseline Data shall be approved by the Fund, after consultation
with the Regulator, before this project converts to a Pay For
Performance project. If more than sixty (60) days have elapsed between
the date of the Baseline Sampling Event and the remediation system
startup, another Baseline Sampling Event must be scheduled and conducted
before system startup. Split sampling is also required for this
additional Baseline Sampling Event. However, the Fund, after
consultation with the Regulator, may waive the requirement to conduct
another Baseline Sampling Event. The Baseline Data described in this
Section are to be distinguished from any baseline data that were
obtained before this Condition of Payment was accepted by the Claimant.
Such data obtained prior to acceptance of this Condition of Payment is
identified hereinafter as "Pre-acceptance Baseline Data".

**6. Start Work Notice**. After the Fund and the Regulator have received
the Claimant's Baseline Data, the Fund, after consultation with the
Regulator, shall have the right, if exercised within fifteen (15) days
of receipt of these data, to contest the Baseline Data, the timing of
the Baseline Sampling Event, and/or the sampling method used. At this
time the Regulator or the Fund may also decide to change the wells
designated as Key or Perimeter Monitoring Wells, as provided in Sections
8 and 9, respectively. The Fund, after consultation with the Regulator,
shall also have the right to require an additional round of split
sampling, as prescribed by Section 11 below, if the results of the split
sampling show a concentration difference of 100 percent or greater
between the split samples when comparing the "sum of the COCs" for the
wells sampled in the Baseline Sampling Event. (The method for
calculating the "sum of the COCs" is described in Attachment C.) If an
additional round of split sampling is required, and this additional
round continues to show a concentration difference of 100 percent or
greater, then the Fund, after consultation with the Regulator, may
require the Claimant to perform another Baseline Sampling Event. The
Fund shall reimburse the Claimant on a time-and-materials basis for the
eligible costs incurred in conducting any additional round of split
sampling or Baseline Sampling Event.

If the Fund, after consultation with the Regulator, agrees with the
accuracy of the Baseline Data, including the reliability thereof, then
the Fund will issue a "Start Work Notice" to the Claimant. If the Fund,
after consultation with the Regulator, does not agree, then the Fund
shall informally meet with the Claimant in a good faith attempt to
address the Fund's concerns. In the event such concerns cannot be
satisfied, the Fund may terminate this Condition of Payment pursuant to
Section 7.E below.

Unless the Fund and the Claimant agree upon other terms and conditions
in writing, eligible remediation activities relating to the Scope of
Work described in Section 1 of Attachment A that are incurred after the
issuance of the Start Work Notice shall be reimbursed or paid pursuant
to the terms of this Condition of Payment

**7. Termination**

> **A.** The Fund may terminate this Condition of Payment if a
> comparison of the Pre-acceptance Baseline Data and the Baseline Data
> of the Key Monitoring Wells shows that the sum of the COCs (identified
> in Table 1 of Attachment B) from these wells has **decreased** fifty
> (50) percent or more. Alternatively, the Fund may terminate this
> Condition of Payment if the Baseline Data of the Key and Perimeter
> Monitoring Wells show that the COC concentrations of each well are at
> or below their respective PARGs.
>
> **B.** The Claimant may terminate this Condition of Payment if a
> comparison between the Pre-acceptance Baseline Data and the Baseline
> Data of the Key Monitoring Wells shows that the sum of the COCs
> (identified in Table 1 of Attachment B) from these wells has
> **increased** fifty (50) percent or more.
>
> **C.** If the Termination provision described in Subsection A or B
> above is invoked, the Fund's reimbursement responsibility under this
> Condition of Payment shall be to pay for the eligible costs of any
> Baseline Sampling Event conducted and any eligible costs associated
> with this event. Such costs shall be paid on a time-and-materials
> basis.
>
> **D.** If there is evidence of a new release or migration of off-site
> contamination onto the Site, then the Fund, after consultation with
> the Regulator, shall informally meet with the Claimant to discuss this
> alleged change in Site conditions. If the Fund, after consultation
> with the Regulator, agrees that Site conditions have changed in this
> manner, then the Fund and the Claimant may terminate or re-negotiate
> this Condition of Payment. If the Fund, after consultation with the
> Regulator, does not agree with the Claimant that Site conditions have
> changed, then the Claimant shall have the right to request a Fund
> Manager or Division Chief decision pursuant to the procedures set
> forth in Article 5 of the Fund Regulations with respect to this
> matter.
>
> **E.** The Fund also reserves its right to unilaterally terminate this
> Condition of Payment for good cause shown upon providing fifteen (15)
> days' written notice to the Claimant and the Regulator and detailing
> the cause(s) for its proposed termination. During that notice period
> the Fund, after consultation with the Regulator, shall informally meet
> with the Claimant to discuss the cause(s) for its proposed termination
> in a good faith attempt to address the cause(s). Such notice period
> may be extended by mutual agreement of the Fund and the Claimant. If
> the cause(s) are not addressed to the satisfaction of the Fund before
> expiration of the original or extended (if applicable) notice period,
> then the Fund's proposed termination becomes effective at that time.
> The Fund reserves the right to determine whether to reimburse the
> Claimant for any costs incurred up to the date of termination. Its
> reimbursement determination shall depend on the cause(s) for
> termination, including but not limited to, the Claimant's malfeasance
> or nonfeasance to comply with the terms of this Condition of Payment,
> and any intentional or negligent acts or omissions committed by the
> Claimant that the Fund has determined are contrary to law or this
> Condition of Payment.
>
> **F.** The Fund and the Claimant each have the right to terminate or
> renegotiate this Condition of Payment if an event occurs that is not
> within the control of the Claimant, who is affected by such event and
> who could not, by reasonable diligence, have avoided such effect. Such
> an event shall be considered a \"Force Majeure\" event, and shall
> include, but not be limited to, the following: fire, flood, explosion,
> act of God, act of a public enemy, war, blockade, public riot, or
> similar catastrophe. However, before the right to terminate or
> renegotiate this Condition of Payment may be exercised, the Fund shall
> first meet with the Claimant in a good faith attempt to address the
> consequences of such an event. If it is decided to terminate this
> Condition of Payment, the Fund shall determine which costs incurred to
> date by Claimant shall be eligible for reimbursement based on
> Claimant's submittal of such costs for payment. If it is decided to
> renegotiate this Condition of Payment, Attachment B, the Payment
> Schedule, shall be amended in writing to reflect the renegotiation
> outcome. Such amendment shall be deemed a part of this Condition of
> Payment and is hereby incorporated by this reference.

8.  **Key Monitoring Wells.**  The monitoring wells that are to be used
    to monitor the progress of the reduction of the contamination levels
    of the COCs are identified in Attachment A, Section 4, as the "Key
    Monitoring Wells." Following its review of the Baseline Data, the
    Regulator or the Fund may decide to change the wells designated as
    Key Monitoring Wells by requiring new and/or different monitoring
    wells to be installed and sampled as Key Monitoring Wells. The Fund
    shall reimburse the Claimant on a time-and-materials basis for the
    eligible costs for installing any such additional monitoring wells
    and conducting the associated sampling and analysis. If the Claimant
    disagrees with the Regulator's or the Fund's decision, the Claimant
    shall have the right to request a Fund Manager or Division Chief
    decision pursuant to the procedures set forth in Article 5 of the
    Fund Regulations with respect to this matter.

9.  **Perimeter Monitoring Wells.**  The monitoring wells that are to be
    used to evaluate the perimeter groundwater conditions of the Area of
    Concern are identified in Attachment A, Section 5, as the "Perimeter
    Monitoring Wells." Following its review of the Baseline Data, the
    Regulator or the Fund may decide to change the wells designated as
    Perimeter Monitoring Wells by requiring new and/or different
    monitoring wells to be installed and sampled as Perimeter Monitoring
    Wells. The Fund shall reimburse the Claimant on a time-and-materials
    basis for the eligible costs for installing any such additional
    monitoring wells and conducting the associated sampling and
    analysis. If the Claimant disagrees with the Regulator's or the
    Fund's decision, the Claimant shall have the right to request a Fund
    Manager or Division Chief decision pursuant to the procedures set
    forth in Article 5 of the Fund Regulations with respect to this
    matter.

**10. Adequacy of Monitoring Wells.** If, after the Fund has issued a
Start Work Notice, the Regulator or the Fund concludes that one or more
of the groundwater monitoring wells is not representative of groundwater
quality in the vicinity of the monitoring location, then the Regulator
or the Fund may require the installation and sampling of one or more new
monitoring wells. These new monitoring wells will be designated as Key
or Perimeter Monitoring Wells and will be included in their respective
monitoring well categories. The Fund shall reimburse the Claimant on a
time-and-materials basis for the eligible costs for installing any such
additional monitoring wells and conducting the associated sampling and
analysis.

**11. Split Samples.** The Claimant shall provide a minimum of seven (7)
days' written notice to the Fund and the Regulator before conducting any
sampling event proposed for the development of the Baseline Data or the
evaluation of the attainment of Remediation Milestones for purposes of
Remediation Milestone Payments. Such notice shall be provided to enable
the Regulator to conduct split sampling. If split samples are taken, and
the results indicate different concentration levels for any COC in one
or more monitoring wells sampled, then the samples with the higher
concentration levels shall be used. However, such higher concentration
samples shall not be used if the sum of the COCs for the wells sampled
shows a difference of 100 percent or greater between the split samples.
For example, if the sum of the BTEX COCs for the wells sampled is 4500
for one split sample and 9000 or greater for the other split sample,
then a second round of split sampling must be performed. The Regulator
shall forward to the Claimant the invoices for all split sample work for
payment. The eligible costs for split sample work that exceeds the scope
of work included in the negotiated fixed price for this Condition of
Payment shall be paid by the Fund on a time-and-materials basis.

**12. Verification Sampling.** The Fund shall have fifteen (15) days
from receipt of the 100% Milestone Attained report results (as described
in Section 15.E below) to approve the 100% Milestone Attained payment
request. However, the Regulator may require the installation and
sampling of a reasonable number of additional monitoring wells and/or
soil borings to confirm attainment of the 100% Milestone Attained
remediation milestone. If such additional wells and/or soil borings are
required, the Fund, after consultation with the Regulator, shall have
fifteen (15) days from the receipt of the sampling results from these
additional wells and/or soil borings to approve the 100% Milestone
Attained payment. This Condition of Payment includes the cost for
installation of one additional well. The Fund shall reimburse the
Claimant on a time-and-materials basis for the eligible costs for
installing any additional monitoring wells and/or soil borings and
conducting the associated sampling and analysis. In either case the 100%
Milestone Attained payment under this Condition of Payment shall not be
payable until the results from all monitoring wells confirm that the
concentrations for the COCs are at or below their respective PARGs for
each and every monitoring well. Payment of the remaining percentage of
the total corrective action fixed price set forth in Attachment B of
this Condition of Payment shall be made in accordance with the
procedures described in Section 15.F below.

**13. Finality of Condition of Payment and Fixed Price; Price
Exception.** This Condition of Payment shall be final and shall not be
terminated except pursuant to the terms and conditions described in
Section 7 above. In addition, the total corrective action fixed price
identified in Attachment B, Section 1, shall not be increased except
where one or more of the situations described in Subsections D and/or F
of Section 7 is present. In this event the procedures applicable to
those sections shall be followed. In all other situations the fixed
price shall not be increased. These other situations include, but are
not limited to: unanticipated iron fouling of a system, inadequate
winterization, well clogging because of biological activity or
sedimentation, increased costs, loss of utilities, modification to the
system to meet the remediation goals, the presence of additional on-site
contamination not identified in the site assessment, and changes in
regulatory requirements from any regulatory agency, including the
Regulator.

**14. Changes in Contaminant Levels**. The Claimant shall notify the
Fund and the Regulator telephonically, with confirmation in writing, as
soon as practicable after the Claimant becomes aware of any significant
change in contaminant levels. For purposes of this Section "any
significant change" includes, but is not limited to, the following:

> **A.** An increase of total contaminant concentrations has occurred in
> any well greater than thirty (30) percent from the last measured
> concentrations for that well.
>
> **B.** Unanticipated measurable free product is found in any
> monitoring well.
>
> **C.** The remediation system has been shutdown for more than a week
> regardless of the cause.
>
> **D.** A significantly increased risk of impact or an actual impact to
> sensitive receptors, such as elevated VOCs in the ambient air, in
> water distribution lines, or in water supply wells, has occurred.

**15. Performance Criteria and Payment Schedule**: Payments shall be
made when the Fund determines that the performance criteria described
below have been achieved. A letter from the Regulator assessing whether
such performance criteria have been achieved must accompany the
Claimant's written payment request.

> **A**. **Start-up Milestone:** The Fund shall reimburse the Claimant
> the percentage set forth in Attachment B, Section 2.A, when all of the
> following criteria below have been satisfied and reported in the
> "Start-up Milestone Report."

1.  The remediation system has been installed and functionally tested.
    The Claimant shall provide the Regulator with forty-eight (48)
    hours' written notice to observe the installed, functioning system.

2.  The Remediation System Start-Up and As-Built Drawings have been
    submitted to the Fund and the Regulator.

3.  As specified in Section 3 of Attachment A, groundwater samples have
    been taken from each Key Monitoring Well and lab results for these
    samples have been submitted for inclusion in the Baseline Sampling
    Event.

4.  The concentrations of the COCs in the groundwater samples analyzed,
    pursuant to Section 15.A.3 above, for each Key Monitoring Well have
    been calculated to define the Baseline Data.

> **B.** **25% Milestone:** The Fund shall reimburse the Claimant the
> percentage set forth in Attachment B, Section 2.B, when there has been
> attained a 25% reduction of the sum of the COCs for BTEX from the
> Baseline Data levels in the Key Monitoring Wells. This reduction shall
> be documented in the "25% Milestone Report." **Note:** Any of the
> quarterly monitoring reports described in this Section 15 may serve as
> a remediation milestone report if identified as such.
>
> **C. 50% Milestone:** The Fund shall reimburse the Claimant the
> additional percentage set forth in Attachment B, Section 2.C, when
> there has been attained a 50% reduction of the sum of the COCs for
> BTEX from the Baseline Data levels in the Key Monitoring Wells. This
> reduction shall be documented in the "50% Milestone Report."
>
> **D. 75% Milestone:** The Fund shall reimburse the Claimant the
> additional percentage set forth in Attachment B, Section 2.D, when
> there has been attained a 75% reduction of the sum of the COCs for
> BTEX from the Baseline Data levels in the Key Monitoring Wells. This
> reduction shall be documented in the "75% Milestone Report."
>
> **E. 100% Milestone Attained:** The Fund shall reimburse the Claimant
> the additional percentage set forth in Attachment B, Section 2.E, when
> the specified PARGs have been attained for each COC identified in
> Table 1 of Attachment B in each of the Key and Perimeter Monitoring
> Wells, except as otherwise provided in Section 12 above. Accordingly,
> each Key and Perimeter Monitoring Well must have concentrations below
> the PARGs for each COC. The attainment of PARGs for each well shall be
> documented in the "100% Milestone Attained Report."

F.  **100% Milestone Maintained:** The Fund shall reimburse the Claimant
    the remaining percentage set forth in Attachment B, Section 2.F,
    when the specified PARGs have been maintained for each COC
    identified in Table 1 of Attachment B in each of the Key and
    Perimeter Monitoring Wells for a period of four (4) consecutive
    quarterly sampling rounds after the remediation system has been shut
    down. Accordingly, each Key and Perimeter Monitoring Well must have
    concentrations below the PARGs for each COC. If these levels are not
    maintained for four (4) consecutive quarterly sampling rounds, then
    the remediation system shall be re-started and operated until the
    PARGs are once again attained for each well and COC. Once the PARGs
    have again been attained, the remediation system shall be shut down
    and monitored until the PARGs have been maintained for a period of
    four (4) more consecutive quarterly sampling rounds. If the levels
    are again not able to be maintained following shutdown of the
    remediation system, the Claimant forfeits all rights to payment of
    this remaining percentage. The maintaining of the PARGs for each
    well for the applicable time periods specified above shall be
    documented in the "100% Milestone Maintained Report."

**16. Entire Understanding.** This Condition of Payment contains the
entire understanding between the Fund and the Claimant with respect to
the subject matter hereof and supersedes all prior or contemporaneous
written or oral negotiations and understandings between them regarding
the subject matter hereof. This Condition of Payment may be amended only
in a writing signed by the Claimant.

**17. Authority to Sign Condition of Payment.** The person signing this
Condition of Payment represents and warrants that he/she has the express
authority, right and power to sign this Condition of Payment.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Claimant Date

# Attachment A

## **Regulatory Requirements**

**(Example)**

**1. Scope of Work:** This Pay For Performance Condition of Payment
applies to the following Scope of Work:

**A.** **Start-up Report:** The Start-up Report shall include a table of
well construction details for all monitoring, soil vapor extraction, and
air sparging wells. In addition, the Start-up Report shall include the
following information:

1.  A brief written summary of the field activities that were performed
    to install and start-up the remediation system.

2.  As-Built Drawings of the remediation system.

3.  A copy of the Start-Up Report required by the San Joaquin Valley
    Unified Air Pollution Control District.

4.  A table presenting the remediation system operational data collected
    during the start-up period. This table should include flow rates,
    vacuum applied, extraction wells in use, and any other data used to
    calculate relevant information presented.

> **B.** **Monthly Operation and Maintenance (O&M) monitoring of soil
> vapor remediation system:**

1.  O&M monitoring shall be consistent with the requirements of the San
    Joaquin Valley Unified Air Pollution Control District and all other
    legally required permits for the operation and maintenance of the
    remediation system.

2.  Effluent soil vapor samples shall be collected on a monthly basis.
    These samples shall be analyzed for TPHG and Benzene, Toluene,
    Ethylbenzene, and total Xylenes (BTEX) in accordance with the
    procedures prescribed by United States Environmental Protection
    Agency ("USEPA") Method TO14.

> **C.** **Quarterly Sampling of all groundwater monitoring wells:**

1.  Quarterly sampling shall be conducted for all Key Monitoring Wells
    > and Perimeter Monitoring Wells

2.  Groundwater samples shall be analyzed for TPHG by USEPA method 8015,
    > and for BTEX by USEPA method 8260.

3.  Except for the last monitoring round before final payment is
    requested, a Key Monitoring Well may be eliminated from the
    monitoring program if each COC identified in Table 1 of Attachment B
    is detected at a level at or below its corresponding PARGs in
    groundwater samples for four consecutive monitoring rounds. However,
    all Key and Perimeter Monitoring Wells must be sampled in the last
    monitoring round before final payment may be requested.

> **D.** **Reporting of O&M and Monitoring Results:**

1.  Reports describing O&M and groundwater monitoring results ("O&M and
    Groundwater Monitoring Reports") shall comply with all applicable
    permit requirements.

2.  All quarterly O&M and Groundwater Monitoring Reports shall be
    submitted to the Fund and the Regulator within forty-five (45) days
    of the sampling event. These reports shall contain the following
    information:

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a.  A brief description of the field activities that occurred during the
    previous quarter.

b.  The amount of remediation system downtime, if any, including the
    causes of the shutdowns.

c.  Identification of active soil vapor extraction wells and air
    sparging wells.

d.  Discussion of any significant modifications or additions made to the
    remediation system. The reasons for the changes shall be discussed
    and the As-Built Drawings modified.

e.  Figures showing the Site plan, groundwater gradient maps, Rose
    diagrams, all monitoring and remediation wells on-site and off-site,
    and iso-concentration contours for TPHG and Benzene.

f.  A table presenting the cumulative depths to groundwater, groundwater
    elevation, and analytical data for each monitoring well. This table
    should reference the PARG for each COC.

g.  A Time-Trend plot of Total COCs in wells used to determine the
    Baseline Data. The Baseline Data shall be included on the plot.

h.  A table presenting the well construction details, current depth to
    groundwater, and an assessment of whether the well screens are
    submerged.

i.  A table showing the observed and cumulative influent and effluent
    analytical data for the soil vapor remediation and groundwater
    treatment systems.

j.  Time-trend plots for soil vapor remediation system effluent
    concentrations.

k.  A table presenting mass removal data for Total Petroleum
    Hydrocarbons as Gasoline (TPHG) and Benzene. This table should
    include mass removal rates observed and cumulative mass removed
    during the monitoring period.

l.  Time-trend plots of cumulative mass removal of TPHG and Benzene.

m.  A table presenting cumulative soil vapor remediation system
    operational data. This table shall include flow rates, vacuum
    applied, extraction wells in use, and any other data collected for
    use in relevant calculations.

n.  All field data sheets and analytical reports

**2. PARGs:** The Remediation Milestone PARGs in this Condition of
Payment are as follows:

> **A. Groundwater Contamination in Perimeter Monitoring Wells:**
> Groundwater PARGs in the Perimeter Monitoring Wells are presented in
> Table 1 of Attachment B.
>
> **B. Groundwater Contamination in Key Monitoring Wells**: Groundwater
> PARGs in Key Monitoring Wells are presented in Table 1 of Attachment
> B.
>
> C. Free Product in Key and Perimeter Monitoring Wells: Free product
> shall be removed from the Key and Perimeter Monitoring Wells in the
> delineated Area of Concern.
>
> **D. Surface Water**: Surface water has not been impacted at this
> Site. In the event that the Claimant or its Consultant discovers a
> surface water impact, he/she shall notify the Fund and the Regulator,
> and other appropriate regulatory agencies, within twenty-four (24)
> hours of such discovery. Such notice shall be provided telephonically
> with confirmation in writing.

**3. Baseline Data:** The baseline monitoring points for this Condition
of Payment shall consist of monitoring wells MW-1, MW-2, MW-3, MW-4,
MW-8, MW-9 and MW-10. All such wells shall be sampled in accordance with
the USEPA methods specified in Section 1.C.3 above. Any free product
present shall be removed prior to sampling.

**4. Key Monitoring Wells**: Key Monitoring Wells to assess the progress
of the reduction of contamination levels shall consist of wells MW-1,
MW-3, and MW-8. Groundwater samples shall be analyzed for the COCs in
Table 1 of Attachment B using the methods specified in Section 1.C.3
above.

**5. Perimeter Monitoring Wells:** Perimeter Monitoring Wells shall
consist of wells MW-2, MW-4, MW-9 and MW-10. These wells shall be
analyzed for the COCs listed in Table 1 of Attachment B using the
methods specified in Section 1.C.3 above.

**6. Groundwater Treatment System Monitoring:** Water sample lab data
used to support a payment request for attainment of Remediation
Milestones shall show the COCs that were present during the Baseline
Sampling Event. Samples shall be analyzed using the methods specified in
Section 1.C.3 above. Remediation Milestone reports shall include tables
showing contaminant concentrations in the monitoring wells sampled and
graphs showing total reduction in contamination from Baseline Data. The
data graphed and method of calculation of data shall also be provided.

**Attachment B**

#### Payment Schedule

**(Example)**

**1. Fixed Price:** The Claimant agrees that the total corrective action
fixed price to achieve PARGs, as set out in this Condition of Payment,
is **\$\_\_\_\_\_\_\_\_\_\_**.

**2.** **Remediation Milestone Payments:** Payments shall be made when
the Fund determines that Remediation Milestones have been attained. The
Payment Schedule, as described in the subsections of Section 15 in the
Condition of Payment and referenced below, and the corresponding
percentages of the total price that will be reimbursed to the Claimant,
are as follows:

Remediation

[Subsection]{.underline} [Milestone]{.underline} [Payment
(%)]{.underline}

**A.** 15.A. Start-up 25

**B.** 15.B. 25% 10

**C.** 15.C. 50% 10

> **D.** 15.D. 75% 15
>
> **E.** 15.E. 100% attained 15
>
> **F.** 15.F. 100% maintained 25

**Table 1**

+-----------------------------------+----------------------------------+
| ###                               | ### Prel                         |
|                                   | iminary Active Remediation Goals |
| ### Chemicals of Concern          |                                  |
|                                   | ### ("PARGs"), ppb               |
| ### ("COCs")                      |                                  |
+-----------------------------------+----------------------------------+
| TPHG                              | 500                              |
+-----------------------------------+----------------------------------+
| Benzene                           | 10                               |
+-----------------------------------+----------------------------------+
| Toluene                           | 50                               |
+-----------------------------------+----------------------------------+
| Ethylbenzene                      | 50                               |
+-----------------------------------+----------------------------------+
| Xylenes                           | 200                              |
+-----------------------------------+----------------------------------+

**Attachment C**

### Sample Calculation of Attainment of Remediation Milestones

This example shows how to calculate whether a remediation milestone has
been attained. Two different methods are used, depending on which
milestone is involved. The first method applies to the intermediate
remediation milestones; the second applies to the 100% milestone.

[Intermediate]{.underline} [Remediation Milestone
Calculation:]{.underline}

Intermediate Remediation Milestones are the 25%, 50% and 75% milestones.
The calculation method described here is a simplified method that
provides a rough measure of the total mass of hydrocarbons present at a
site at the initiation of remediation (i.e., the Baseline Data) and as
remediation progresses. Although PARGs have been established for Total
Petroleum Hydrocarbons (TPH) as well as BTEX, normally only BTEX
concentrations will be used to assess completion of the Intermediate
Remediation Milestones.

Assume for this example that the Baseline Sampling Event yields the
following results for Monitoring Wells 1 through 4 (all in units of
ppb):

[COC]{.underline} [MW-1]{.underline} [MW-2]{.underline}
[MW-3]{.underline} [MW-4]{.underline} [PARG]{.underline}

TPH 180,000 68,000 75,000 10,000 1000

B 34,000 9,800 16,000 4,800 100

T 39,000 4,600 24,000 320 200

E 3,000 3,000 970 200 500

X 15,000 9,200 5,100 510 300

Total BTEX 91,000 26,600 46,070 5,830 1,100

Add the Total BTEX concentrations calculated for each well to derive the
"sum of the COCs" for the BTEX Chemicals of Concern ("COCs") for all of
the wells for this Baseline Sampling Event. This addition yields a total
of 169,500.

Next, calculate the amount by which the Baseline BTEX concentrations
must be reduced to reach PARGs. This amount is the difference between
169,500 and 4,400 (1,100 x 4 MWs) or 165,100.

Then, multiply this difference (165,100) by 25% to calculate the amount
by which the difference must be reduced to reach the 25% Milestone. This
reduction amount is 41,275. Thus, the 25% Milestone is reached when the
Baseline BTEX concentrations have been reduced to 123,825 (165,100 -
41,275).

The 50% and 75% Milestones are calculated in a similar fashion.
Accordingly, the values are 82,550 and 41,275, respectively.

[100%]{.underline} [Milestone Attained Calculation:]{.underline}

Calculation of the 100% Milestone Attained remediation milestone is
determined by evaluating whether PARGs have been attained for each COC
at each monitoring well, including the PARG for TPH. For example, the
PARG for benzene of 10 ppb would need to be attained for each monitoring
well. Hence, for MW-1, the final measured value of benzene would have to
be 10 ppb or less. MW-1 would also have to show that each of the other
COCs was at or below its respective PARG. A similar result would be
required for MW-3 and MW-4 in order to satisfy the 100% Milestone
Attained remediation milestone.