The State Water Code requires a Notice of Intention to drill a well and a Report of
Completion to be filed with the Department of Water Resources.

FIRE PROTECTION: The Rock Creek Fire Protection District advises as follows:
"This area was recently annexed to the Rock Creek Fire Protection District,
and fire protection will be furnished by the Rock Creek Fire Department.
Our ability to provide fire protection is contingent upon availability of
water. Since this is in a rural area where no water mains exist and wells
will furnish domestic water, plans must include a pond or resevoir with an
all weather access road for fire apparatus passage.

This reservoir must produce 500 GPM for 4 hours or contain 120,000 gallons
to meet fire suppression needs. These requirements are stated in the Placer
County Land Manual. The following list is a list of units that will respond
to this area and approximate response times.

2- 1,000 GPM pumpers, 750 gal. tanks, each with crew of three.
1- 2,300 gal. tanker, 250 gpm crew of one.

1- 250 gal. rescue/mini pumper 250 gpm. crew of two.

1- 600 gpm pumper, 500 gal. tank, crew of two.

1- 750 gpm pumper 500 gal. tank, crew of three.
1-2,300 gal. tanker, 250 gpm. crew of one.

Response time for these units five to eight minutes from stations.

"The subdivider has advised us that he does not plan to make arrangements with PG&E to provide electric service to the lot line of each lot within this subdivision.

We certify that overhead electric distribution to Black Oak Estates, #1 can be supplied under our Electric Rule 15. However, there may be instances where it is determined that the extension of electric distribution facilities under the regular provisions of these rules is not feasible. In these instances the exceptional cases provisions of the rules would be invoked requiring, among other things, the payment of cost of ownership charges.

Lot 11, the most remote lot, is located approximately 3,750 feet from our existing overhead electric facilities. If service is desired to this lot, the approximate cost including the cost of ownership charges would amount to $33,750.00.

The charges quoted are based on current tariffs for an electric distri-
bution system. However, the actual charges for the electric distri-
bution system will be established in accordance with the current extension
rules in effect at the time of the installation."

TELEPHONE: Pacific Telephone and Telegraph Company advises:

"It appears that the minimum lot is three acres or more, therefore, under the present regulations of the California Public Utility Commission telephone facilities may be placed overhead.

Pacific Telephone Company expects to be in a position to provide telephone service to applicants in the above-listed development upon request and in accordance with requirements of and at rates and charges specified in its tariffs on file with the California Public Utilities Commission.

This development is located outside our existing base rate area. The most
remote lot is approximately 3,900 feet from our existing facilities. There-
fore, line extension along public thoroughfare will be involved. The
Utility will provide without cost the first 1,000 feet. The individual
applicant on the most remote lot would be required to pay one-half of the
cost of extending telephone facilities beyond that point.
At the present
time this cost is estimated to be $6,125.00. If the individual applicant
requests the most remote portion of this lot, the distance would be approxi-
mately 600 feet. The Utility will provide, at its cost, the first 300 feet.
The individual applicant would be responsible for the 75% of the remaining
300 feet. This cost is estimated at this time to be $543.00.

If you have any questions or need further information, please contact
Mr. R. M. Roudebush at (916) 885-1797."

SEWAGE DISPOSAL: Septic tanks will be used for sewage disposal. You must pay for your septic tank. The developer estimates the cost to be $1,800.00. Prior to commencing construction, you should contact the local health department for specifications, requirements and any local problems.

STREETS AND ROADS: As of the date of this report, streets have not been completed.
The subdivider has poated a bond with the county to ensure completion to county standards.
Subdivider has 18 months to complete. The time limit may be extended by the county.
The roads within this subdivision are private. The repair and maintenance of these private
roads will be in accordance with provisions included in the CC&R's which allow for annual

assessments.

Page 6 of 7 Pages

File No. 15,082 SAC

33-716 - 78 - 40

THE SUBDIVIDER SHOULD PROVIDE YOU WITH A COPY OF THIS AGREEMENT.

An engineer estimates it will cost $5.02 per lineal foot to bring roads to county standards and that the annual cost for maintaining roads as existing at time of sale will be $0.39 per lineal foot.

SCHOOLS: The Placer Hills Union School District advises as follows:

"The Placer Hills Elementary School District serves this geographic region and is therefore responsible for the education of the students this subdivision will generate.

Our projection of .9 students per unit is commensurate with the population trend in Christian Valley. This will be approximately 14 additional students. We are presently on double session at the Kindergarten through sixth grade levels. The students in grades K-6 are served at Placer Hills School in Meadow Vista. The students in grades 7-8 will attend Weimar Hills School

in Weimar. Bus transportation will be available."

The Placer Union High School District provides the following information: This subdivision is located approximately 16-1/2 miles from Colfax, Placer County, and is within the attendance area of Colfax High School in Colfax. Student transportation to Colfax High School will be provided at district expense per district policy.

NOTE: This school information was correct as of the date of this report.
Purchasers may contact the local school district for current in-
formation on school assignments, facilities and bus service.

For further information in regard to this subdivision, you may call (916) 322-2505, or examine the documents at the Department of Real Estate, 4433 Florin Road, Suite 250, Sacramento, California 95823.

Page 7 of 7 Pages

File No. 15,082 SAC

JOH: pac

This Report Expires on Date Shown Above. If There Has Been a Material Change in the Offering, an
Amended Public Report Must Be Obtained and Used in Lieu of This Report.

Section 35700 of the California Health and Safety Code provides that the practice of discrimination because of race, color, religion, sex, marital status, national origin or ancestry in housing accommodations is against public policy.

Under Section 125.6 of the California Business and Professions Code, California real estate licensees are subject to disciplinary action by the Real Estate Commissioner if they make any discrimination, distinction or restriction in negotiating a sale or lease of real property because of the race, color, sex, religion, ancestry or national origin of the prospective buyer. If any prospective buyer or lessee believes that a licensee is guilty of such conduct, he or she should contact the Department of Real Estate.

Information Regarding Schools can be found on Pages 8 and 9 of this report.

READ THE ENTIRE REPORT on the following pages before contracting to purchase a lot in this
SUBDIVISION.

R/E Form 618

Page 1 of 9 Pages

1.

2.

3.

4.

SPECIAL NOTES

THE UNIFORM BUILDING CODE, CHAPTER 70, PROVIDES FOR LOCAL BUILDING OFFICIALS
TO EXERCISE PREVENTIVE MEASURES DURING GRADING TO ELIMINATE OR MINIMIZE DAMAGE
FROM GEOLOGIC HAZARDS SUCH AS LANDSLIDES, FAULT MOVEMENTS, EARTHQUAKE SHAKING,
RAPID EROSION OR SUBSIDENCE. THIS SUBDIVISION IS LOCATED IN AN AREA WHERE SOME
OF THESE HAZARDS MAY EXIST. SOME CALIFORNIA COUNTIES AND CITIES HAVE ADOPTED
ORDINANCES THAT MAY OR MAY NOT BE AS EFFECTIVE IN THE CONTROL OF GRADING AND
SITE PREPARATION.

PURCHASERS MAY DISCUSS WITH THE DEVELOPER, THE DEVELOPER'S ENGINEER, THE
ENGINEERING GEOLOGIST, AND THE LOCAL BUILDING OFFICIALS TO DETERMINE IF
THE ABOVE-MENTIONED HAZARDS HAVE BEEN CONSIDERED AND IF THERE HAS BEEN
ADEQUATE COMPLIANCE WITH CHAPTER 70 OR AN EQUIVALENT OR MORE STRINGENT
GRADING ORDINANCE DURING THE CONSTRUCTION OF THIS SUBDIVISION.

YOUR ATTENTION IS DIRECTED TO THE SECTION HEADED "TELEPHONE".

THE PINE CREEK ESTATES OWNERS ASSOCIATION SHALL BE FORMED AND SHALL EXIST
ONLY FOR THE CONVENIENCE OF THE OWNERS TO ASSIST WITH THE MAINTENANCE AND
UPGRADING OF THE PROPERTIES AND TO CARRY OUT THE GENERAL PURPOSES OF THE
OWNERS. THE ASSOCIATION SHALL NOT ENGAGE IN ANY BUSINESS OR PROFIT-MAKING
ING ACTIVITIES, BUT SHALL EXIST ONLY AS AN ARRANGEMENT FOR THE PROTECTION
OF THE PROPERTY INTERESTS OF THE MEMBERS.

THE SOLE INCOME OF THE ASSOCIATION SHALL BE DERIVED FROM ASSESSMENTS RE-
CEIVED FROM INDIVIDUAL MEMBERS.

AS EACH PARCEL IS SOLD OUT OF THE PROPERTIES AND PASSES OUT OF THE TITLE
OF DECLARANTS, ITS NEW OWNERS SHALL BE OBLIGATED TO PAY TO THE ASSOCIATION
AN INITIATION FEE OF $40.00 PER PARCEL PURCHASED. SUBSEQUENT PASSAGE OF
TITLE FROM SUCH NEW OWNER TO A SUBSEQUENT OWNER SHALL NOT BE SUBJECT TO
THE INITIATION FEE.

AS AN INITIAL MAINTENANCE AND UPGRADE FUND PAYMENT, EACH NEW OWNER AND
SUBSEQUENT OWNER CONVENANTS AND AGREES TO PAY TO THE ASSOCIATION $80.00
PER YEAR PER PARCEL OF THE PROPERTIES OWNED. PAYMENTS SHALL BE DUE ON
THE 10TH DAY OF OCTOBER OF EACH YEAR, BEGINNING ON OCTOBER 10, 1978.

THE SUBDIVIDER ADVISES THAT A SAVINGS ACCOUNT IS ESTABLISHED AT NORTH
VALLEY BANK, RED BLUFF BRANCH, IN THE NAME OF "PINE CREEK ESTATES OWNERS
ASSOCIATION WITH AN INITIAL DEPOSIT OF $1,920.00 TO COVER THE INITIATION
FEE AS REQUIRED BY ARTICLE XIV, SECTION 8 OF THE DECLARATION OF RESTRICTIONS
OF PINE CREEK ESTATES, TRACT 77-1003, TEHAMA COUNTY, CALIFORNIA. UPON
THE SALE OF EACH LOT THE $40.00 INITIATION FEE SHALL BE PAID TO NICHOLS
DEVELOPMENT, INC., AS A REFUND OF SAID DEPOSIT.