ON FEBRUARY 14, 2005, REGION 5 ENTERED AN ADMINISTRATIVE ORDER ON CONSENT (AOC) WITH HR ONE DEVELOPMENT, LLC. THE AOC REQUIRES HR ONE TO PERFORM THE REMOVAL ACTION AT THE NEW HAVEN FOUNDRY SITE AS SET FORTH IN THE REGION 5, SEPTEMBER 15, 2004 ACTION MEMORANDUM. IN EXCHANGE, THE U.S. EPA IN THE AOC PROVIDES HR ONE WITH A COVENANT NOT TO SUE FOR ANY AND ALL CIVIL LIABILITY FOR INJUNCTIVE RELIEF OR REIMBURSEMENT OF RESPONSE COSTS PURSUANT TO SECTIONS 106 AND 107(A) OF CERCLA, CONTRIBUTION PROTECTION AND A RELEASE FROM ANY LIEN UNDER CERCLA 107(R). IN 2002 THE FOUNDRY OPERATIONS CEASED DUE TO THE BANKRUPTCY OF ITS OWNER. FROM THE 1920'S UP UNTIL THAT TIME, THE NEW HAVEN FOUNDRY PRODUCED IRON CASTINGS FOR THE AUTOMOTIVE INDUSTRY. THE SITE HAD BEEN THE SUBJECT OF CLEAN AIR ACT, CLEAN WATER ACT AND RCRA CITIZEN SUITS AND FEDERAL ENFORCEMENT ACTIONS IN THE 1990'S. IN JUNE OF 2003, MACOMB COUNTY REQUESTED ASSISTANCE FROM U.S. EPA AND MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY IN REMEDIATING THE PROPERTY. REGION 5 CONDUCTED A REMOVAL SITE ASSESSMENT IN FEBRUARY OF 2004 AND THEN ISSUED AN ACTION MEMORANDUM FOR THE SITE WHICH APPROVED THE ON SCENE COORDINATOR�S PROPOSED RESPONSE ACTION AT THE SITE (INCLUDING REMOVAL OF DRUMMED HAZARDOUS WASTE, EXCAVATION OF CONTAMINATED FOUNDRY SAND AND SECURING THE PROPERTY) AND AUTHORIZED THE EXPENDITURE OF UP TO $377,352 FOR THE REMOVAL ACTION. HR ONE INTENDS TO PURCHASE THE PROPERTY FROM THE BANKRUPTCY ESTATE.