Contract analysis

1. Introduction and Statutory Authority This letter constitutes a formal good-faith offer from the Cascadia State Infrastructure Authority ("CSIA"), a Washington State governmental instrumentality created pursuant to Chapter 43.99N of the Revised Code of Washington ("RCW"), to acquire certain permanent and temporary easement interests in real property owned by Dunlap Creek Ranch Inc., a Washington S-corporation ("Dun

2. Project Description The project for which CSIA seeks to acquire easement interests on Dunlap Creek's property is the Regional Flood Resilience and Stormwater Management Program — Lower Nooksack Pump Station Network (the "Project"), designated as CSIA Capital Project Number CP-2025-NPS-004. The general scope of the Project involves the design, construction, and long-term operation of a network of four (4) pump stat

3. Identification of Property Interests Sought CSIA seeks to acquire the following easement interests on real property owned by Dunlap Creek Ranch Inc., as more particularly described below. 3.1 Permanent Easement — Pump Station No. 3 (PS-3) CSIA seeks a permanent easement burdening approximately 2.1 acres of land on Whatcom County Parcel No. 380220-108400, located at Hannegan Road at the Nooksack River crossing in W

4. Good-Faith Offer — Compensation 4.1 Basis of Offer The offer amounts set forth below are based on an independent appraisal of the fair market value of the easement interests sought, prepared by Jocelyn Trueblood, MAI, a certified general real estate appraiser with Northwind Valuation Group LLC, located at 505 Lakeway Drive, Suite 220, Bellingham, Washington 98229. Ms. Trueblood is a Member of the Appraisal Institu

5. Statement of Owner's Rights Under RCW 8.25 In accordance with the requirements of RCW Chapter 8.25, CSIA hereby advises the Owner of the following rights: Right to Independent Counsel and Appraisal. The Owner has the right to obtain independent legal counsel and an independent appraisal of the property interests that are the subject of this offer, at the Owner's own expense. CSIA encourages the Owner to consult wi

6. Response Period CSIA respectfully requests that the Owner respond to this offer within thirty (30) days of receipt of this letter. Based on the anticipated delivery date of this letter, CSIA requests a response on or before May 21, 2025. The Owner's response may take the form of an acceptance, a counteroffer, a request for additional information, or a request to schedule a meeting to discuss the Project and the pr

7. Enclosed Documents Enclosed with this letter for the Owner's review are the following documents:

1. Project location map and pump station site plan identifying the location of Pump Station No. 3 (PS-3), the temporary construction easement areas, and the pipeline corridor on the Dunlap Creek parcels (Whatcom County Parcel Nos. 380220-108400 and 380220-108401).

2. Preliminary easement area depictions showing the approximate boundaries of the permanent easement and temporary construction easement areas on the Dunlap Creek parcels. These depictions are preliminary and are subject to final survey by Ironclad Surveying & Land Services LLC. Final legal descriptions and easement plats will be incorporated into the executed easement agreements.

3. Summary of appraised values from the Northwind Valuation Group LLC appraisal dated March 14, 2025, prepared by Jocelyn Trueblood, MAI. As noted above, the complete appraisal report is available for the Owner's review upon request.

4. Draft Permanent Easement Agreement — Dunlap Creek Ranch Inc. (PS-3), in substantially final form for the Owner's review and comment. This draft agreement sets forth the proposed terms and conditions of the permanent easement for Pump Station No. 3.

5. Draft Temporary Construction Easement Agreement — Dunlap Creek Ranch Inc., in substantially final form for the Owner's review and comment. This draft agreement sets forth the proposed terms and conditions of the temporary construction easement, including site restoration requirements and protections for ongoing agricultural operations.

6. General information brochure regarding CSIA's acquisition process and the Owner's rights under Washington law, including a summary of the Uniform Condemnation Procedures Act (RCW Chapter 8.25).

8. Closing CSIA sincerely appreciates the Owner's willingness to consider this offer and to engage in what CSIA hopes will be productive and mutually respectful negotiations. CSIA understands that the acquisition of easement interests on privately owned land is a significant matter for any property owner, and CSIA is committed to treating the Owner fairly, transparently, and with the respect that Dunlap Creek and its