SITE INFORMATION AND CORRESPONDENCE FILE 2

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021/101/2009 23: 51 47e,5F302 MR SPACE PAGE 04 UST Cleanup Fund Claimants and I -3- January 28, 200 Interested Parties 2Priority Class B (Small business(s with 10 Qr few erYees eTI?IQ a n I andJ:yt4L--n--w-@- average ross rete of 12 mi lion or lm)" • Priority Class 8 claims are the second priority and their payment requests are being processed and the payments placed on hold pending the availability of funds. Based on I �Iu the rate of receipt of payment relluosts and the current backlog, we estimate that Priority Class B payments will be delaye 6 to18 months. • In future fiscal years, we estimat Priority Class B claimants will receive about 70 percent of the Fund's available r venues for claims. There is a possibility that some active LOCs will be suspended I the near future In order to keep projected payment demand to the 70 percent hose suspensions will be based on the filing date of the claim application, with the most,recent claims being suspended first. • Until we can determine that no active Priority Class B LOCs will need to be suspended we will not issue any now LOCs for Priority Class 8 claims. A notice to this effect will be mailed to Priority Class B claims on the priority list. 3Priority Class Q (Businesses wit 500 or fewer emlglovees):' 0 Priority Class C claims are the third priority and their claims are most affected by the Fund's revenue and cash flow issues. Payment requests will be processed and the payments placed on hold pendia the availability of funds. Current projections indicate I i that the delay for Priority �payments may be as long as 30 months. 0 On November 7, 2008, a letter was mailed to 612 claimants notifying them that their 1 LOCs were suspended. Paymerilt requests for those LOCs covering costs incurred through November 17, 2008 will e accepted and processed as funds become available. * On January 7, 2009, a letter was mailed to an additional 617 claimants notifying them that their LOCs were suspended. Payment requests for those LOCs covering costs incurred through January 17, 2049 will be accepted and processed as funds become available. 0 On January 9, 2009, a letter was mailed to all Priority Class C applicants on the Fund's Priority List notifying them that until sufficient revenue is received, no new LOCs would be issued for the remainder of F)'2008-2009, and it is unlikely that funds will be available for several years 4. Priority— y Class D ft ear clmmants! typically major oil cairn onies. businesses, and municil2alities)-' • Priority Class D claims are the fo rth and lowest priority. Payment requests for these claims are being processed and he payments placed on hold pending the availability of funds. The Fund is currently ma ing payments to meet the 14 percent minimum requirement for this FY, • On January 5, 2009, a letter wasImailed to 127 claimants notifying them that their LOCs were suspended. Payment requsts for those LOCs covering costs incurred throg_qh January 15, 2009 will be accepted and processed as funds become available. • In future FYs, payments to Mass ass D claimants will continue to be limited to the statutory minimum of 14 percent Priory the Fund's not revenues. • No new LOCs will be issued for Priority Class D claims for the remainder of FY 2008-2009, and it is unlikely that funds will be available for new LOCs for several years. California En4ronmental Protecdon Agency Reay idFpa,