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Noble to Leistiko/Diamond Aire Status/AWC Project 324-08t IRMDIied Water CONSULTING LLC October 14, 2009 Mr. Fred A. Leistiko City of Kalispell Airport Manager P.O. Box 1997 Kalispell, MT 59903-1997 Re: Diamond Aire Status; Facility ID #1503172, Release #4700 A WC Project No. 324-08 Dear Fred: The purpose of this letter is to provide you with a status report of the Diamond Aire site. As you are aware, we are still awaiting further directives from the Montana Department of Environmental Quality (DEQ) for additional site characterization work since submitting the Initial Remedial Investigation Report. I met with Marcile Sigler, Site Response Manager, on October 2, 2009 to determine the regulatory status of this site. Ms. Sigler provided the following information: 1. DEQ will be requiring further investigation to delineate the complete extent of the soil and groundwater contamination associated with the underground storage tanks (USTs). 2. DEQ will also require further evaluation of the floor -drain sumps in the buildings and likely require closure. 3. The USTs are still considered active and are therefore, eligible for 100 percent re- imbursement for remedial investigative work and any cleanup activities. 4. Should Mr. Talmage discontinue dispensing fuel, the USTs can only be temporarily out of service for six (6) months or reimbursement eligibility becomes an issue. 5. Physical removal of the USTs is not an eligible expense, but removal of any contaminated soil is eligible for reimbursement. 6. The site will likely go to long-term monitoring once the soil and groundwater contamination has been delineated. 7. The costs incurred to date are $22,024. The Petroleum Tank Release Compensation Fund (PTRC) has paid for $11,012. The owner and the State share the expenses for the initial $35,000 of costs incurred (i.e. owner's responsibility $17,500), which essentially represents the deductible portion of the owner's policy. Once the deductible is met, the Fund pays for the remaining costs up to $965,000. As with any site, the primary concern is for the owner to maintain compliance with UST regulations and reporting requirements. Should this not occur, the PTRC Board may decrease the percentage of eligible costs for reimbursement. P.O. Box 7667 • Kalispell, Montana 59904 • Tel: 406 756-2550 • Fax: 406 756-0527 Finally, should the City of Kalispell purchase this property, reimbursement eligibility is directly transferred to the City. The City would not be responsible for a second deductible. If you have any questions regarding this information or other project management activities, please don't hesitate to contact me. Sincerely, Applied Water Consulting LLC Rog r4Noble, P.G. Principal/Sr Hydrogeologist