SITE INFORMATION AND CORRESPONDENCE

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EHD HMLI Fax:916-386-r011 Feb 1 '9b (:1( r. u5 STATE OP CALNCRMA-CALIFORNIA E VIROA1IIAI7AL MOTOCnON AGENCY PETE W SON,GavMnor STATE WATER RESOURCES CONTROL BOARD DIVISION OF CLEAN WATER PROGRAMS 2014 T STREET, SUITE 130 P.O.BOX 944212 SACRAMENTO.CALIFORNIA 34244-2120 1816)227-4307 1916)227-4530 IFAXI JAk 2 3 7498 Mr. Cris Hamilton 1371 Delone Drive Yuba City, CA 95991 Dear Mr- Hamilton: UNDERGROUND STORAGE TANK CLEANUP FUND, CLAIM NO. $790, C.& M.YEARING (CLAIMANT) 521 NO. CHEROKEE LANE, LODI CA (SITE) In response to your letter addressed to Harry Schueller dated January 12, 1996 regarding the subject claim, I have reviewed the documentation concerning the monies received by the claimant($75,004) as a result of a settlement agreement between the claimant and various insurance companies. According to the documents and my telephone conversation with you, I understand the facts as ollows- The claimant sold the subject property to Saleem Khan and Mohammad Jameei in April 1989. The purchasers were aware that contamination existed on the property at the time of purchase and agreed to purchase the property"as-is". The claimant states that the property was appraised at$125,000 but agreed to a selling price of$25,000 due to the contamination. The purchasers agreed to indemnify, defend, and hold the seller harmless from all claims including cleanup expenses. Once corrective action directives were issued by the local regulatory agency, the new owners failed to respond. Since the claimant had previously owned the property, the regulators directed the claimant to remediate the site- The claimant complied with the directives and to date has expended approximately$37,0(0 for corrective action. As a result of various lawsuits filed against several individuals and insurance companies,the claimant agreed to the$75,000 settlement. agree with the previous statements made by Laura Beck, of this office, regarding the compensation paid by the various insurance carriers. The Settlement Agreement is not clear as to the characterization of the monies received by the claimant. However, the facts indicate that the claimant accepted a selling price far below the appraised value in exchange for an agreement relieving the claimant of all liability to clean up the contamination at the site- After the buyers failed to fulfill their promise to remediate the site, the claimant initiated the cleanup as directed. In addition, the Agreement indicates that all parties involved in the payment of the settlement were fully aware that the claimant was qualified for the Underground Storage Tank Cleanup Fund. In fact, one of the conditions of the Agreement is that the claimant promise to continue to apply for full recovery of all available relief with respect to contamination of the property in accordance with the Cleanup Fund