Dear Ms. Fliss:

As per Supplement to Master Agreement For hazardous Substance Or Petroleum Response Services between the Indiana Department of Environmental Management (IDEM) and Earth Tech, Inc. (Earth Tech or ET) please find the Monthly Report of Operations of the Illinois Central Spring Treatment Plant, Bloomington Indiana for the reporting period of May 2003.

Operational Status - Except for a power outage that resulted in the failure of the PLC on May 5, Plant operations for the month of May remained relatively normal. Highlights of the month are as follows:

Precipitation recorded for the month was 5.03 inches. The National Weather Service records show that the historical average rainfall for the month is 5.12 inches. The maximum rainfall during a 24-hour period was on May 4 with 1.19 inches recorded. Approximately 5,744,585 gallons of spring water was taken to storage with 1,559,760 gallons drained and processed through the treatment facility during the month of May. No spring water remained in storage at the month's end. On May 5 an anomaly occurred with the PLC when line power was restored to the facility. The transfer of power from the generator to line power caused the PLC to shut down thereby shutting down all automated functions within the facility. Normal operations were restored approximately one hour after the event occurred. See discussions below for further information.

A total of 16,494,821 gallons of water was processed through the facility for the month of May. Approximately 4,184,825 gallons of clarified water was discharged as an overflow from the SRS Tanks. With the loss of the automated functions, an overflow of 7,068 gallon of untreated water overflowed the SRS Sump during this period.

Corrective Measures Taken or Planned in the Month of May.

a. A report from Cinergy concerning the stability of the electric supply to the site was received and is currently under review. During the month of May, power outages and glitches continued to occur in the immediate vicinity. Bids were received and have been taken under advisement for the power conditioning and protection equipment.

b. The replacement and upgrade of the general computer, the associated hardware and software were contracted to Frakes Engineering. The upgrades will include the operating and business software, the General CPU, the Data Base CPU (software only), monitor, and the transfer of the necessary date between the units.

c. Painting of the office floor was completed.

d. Fire Extinguishers were inspected and certified for the fiscal year.

e. Fire Alarm systems were inspected and certified for the fiscal year.

f. Outside and emergency lighting bulbs were replaced as needed and where a lift was required.

g. Insulation was affixed on the inside table of the gable ends.

h. Gravel was placed on the travel and parking areas and weeds sprayed.

i. SRS pumps were backwashed to clear the pump stems.

j. PCB Sludge was pressed from the 2nd thickener. The roll off box was prepped for disposal with samples collected for characterization (PCB only).

k. The turbidity meter was moved to make room for the new SRS Sump ventilation system.

l. The treatment and SRS Sump building eaves were cleaned and inspected.

m. The following items are being prepared for bid:

• High Bay - Fan access (ladder)
• Bag Filter housing lift
.
• SRS Ventilation System installation

Unexpected Maintenance Requirements

a. On May 5 at approximately 7:42 AM main line power was restored to the facility from the site generator. With the transfer of power from the site generator to the main line an anomaly occurred that caused the PLC to shut down. With the loss of the PLC, all automated functions were lost. The Plant Operator was on site at the time and began making preparations to transfer operations to a manual mode. The sequencing of the operation began with the pumps at the filter feed tank followed by the 200 gpm and 800 gpm SRS Process Pumps. Prior to the starting the process pumps a single 2500 gpm pump was brought on-line to prevent any further discharge of untreated water from the SRS Sump (>11.0 ft level). For a period of some 4 minutes, approximately 7,068 gallons of water was discharged directly from the SRS Sump the creek bed without any treatment.

While operations were being transferred to a manual mode, two assistant operators were dispatched to assist with the manual manipulation of the pumps in order maintain the sump levels and the treatment process. The engineering firm who configured the PLC was contacted and they were able to provide information on how to reset the PLC. No loss of programming or other such functions were experienced. The cause of the anomaly is not known but believed to be associated with a loss of communication when the transfer switch did not cleanly change positions or transfer power. The event lasted until 8:42 AM when all operations were returned to the automated control.

b. Valve 206 - Automated SRS Tank Drain Valve does not properly work in an automated capacity. Currently the valve is manually manipulated to set the SRS Tank drain rate. The valve appears to overheat when in the auto mode. The problem will be addressed during the next set of plant upgrades.

Analytical Results

A summary of the analytical results for the reporting period is attached to this report (See "Event Sampling Analysis"). Results for the month in review that are not currently available will be shown on the report without the test result. The log will be updated each month. Currently the only regular sampling sequence is a weekly effluent sample.

Test results should be available during the next reporting period.

Evidence Of Trespassing

There was no evidence of trespass during the reporting period.

Report from Visitors Log / Plant Access

The Visitor's Log is available for inspection at the ICS office. Copies of this log are available to authorized personnel upon request and authorization of the IDEM Project Manager. There were no telephone calls requesting tours or access from the general public.

Viacom had requested and was granted general access to the spring side of the project during the month for various sampling events. Access by Viacom is recorded on the Visitor's Log.

Summary of Costs

Total costs for the reporting period of May 2003 (4/19/03 to 5/13/03) were $31,480.46. Project cost for the Fiscal Year to date is $266,808.54 with a cumulative project cost of $518,420.97 since August 1, 2001 less any expenditure that have not been approved by the agency. This cost accounts for approximately 73.76% of the fiscal years project costs as of the reporting date. May constitutes the 10th month of the fiscal operating year.

This cover letter and attachments complete the monthly report for Illinois Central Spring. If there are any questions, please contact Tom High or Martin Lytle at 812-331-2741.

Other Related Business

Sincerely,
Earth Tech

Tom High
Lead Operator