SITE INFORMATION AND CORRESPONDENCE

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Van De Pol Enterprises, h. -27 Claim No. 18342 2009 Back, rq ound By a letter dated October 23, 2008, the Fund issued a notice (Important Notice — Delay in Fund Reimbursements) to all active claimants notifying them that there would be a delay in reimbursements due to a low cash flow balance, and that some claimants would be receiving a letter suspending their LOC based on priority class and date of application. I By a letter dated November 7, 2008, the Fund issued a notice to the first group of 612 Priority Class C claimants suspending their LDCs until funds become available. This notice. also stated the Fund would accept RR packages from the first group of claimants with suspended LOCs that contained costs incurred through November 17, 2008. By a letter dated January 7, 2009, the Fund issued a notice to the second group of an additional 617 Priority Class C claimants suspending their LDCs until funds become aVaiiable` This notice also stated the Fund would accept RR packages from the second group of claimants with suspended LOCs that contained costs incurred through January 17, 2009. Because of the ongoing cash flow. issues and increased payment demand, the Fund has had to suspend over 1,200 LDCs on Priority Class C claims this fiscal year. These LOC suspensions have affected almost 75 percent of the active Priority Class C claims. The LOC suspensions are based on the reverse order of the Fund claim application filing date. Some LOCs have been suspended for Priority Class D claimants as well. Discussion The Fund understood that suspending these claims could prove challenging with respect to continued corrective action activities at the affected sites. However, given the current fiscal situation, the Fund must ensure that the limited available funding is reimbursed to claimants in an equitable, effective, and timely manner, and in accordance with the established priority ranking system mandated in the Fund Statutes. All claims currently being reimbursed by the Fund are considered to pose some health and environmental risk by the UST regulatory agencies directing the site cleanups. The Fund's priority ranking system established by the California Legislature was intended to first reimburse claimants who are least able to pay corrective action costs by creating the four different priority classes, A through D. SummaN In summary, we understand the financial difficulties that will be faced by many claimants as a result of the LOC suspensions. We have received numerous appeals from claimants with suspended LOCs with financial hardships similar to yours. While I sympathize, I cannot ignore the statutory requirements for prioritizing claims and payments that were established by the California Legislature when it created the Fund in 1989. Please note that your LOC suspension is for Fund matters only. You are still responsible for complying with any regulatory directives/time schedule orders issued by the lead UST regulatory agency directing the corrective actions ion your site. California En vironmental Protection Agency P.r�Recycled Paper