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Shell Oil Company -2- Article 11, Chapter 16, Division 3, Title 23, California Code of Regulations. Article 1 I categorized the corrective action process into phases. In addition, Article I I requires the responsible party to submit an investigative workplan/Corrective Action:Plan(CAP)before performing any work. This phasing process and the workplan/CAP requirements were intended to: 1. help the responsible party undertake the necessary corrective action in a cost-effective, efficient and timely manner; 2. enable the regulatory agency to review and approve the proposed cost-effective corrective action alternative before any corrective action work was performed; and 3. ensure the Fund will only reimburse the most cost-effective corrective action alternative required by the regulatory agency to achieve the minimum cleanup necessary to protect human health, safety and the environment. In some limited situations interim cleanup will be necessary to mitigate a demonstrated immediate hazard to public health, or the environment. Program regulations allow the responsible party to undertake interim remedial action after: (1)notifying the regulatory agency of the proposed action, and; (2) complying with any requirements that the regulatory agency may set. Interim remedial action should only be proposed when necessary to mitigate an immediate demonstrated hazard.Implementing interim remedial action: does not eliminate the requirement for a CAP and an evaluation of the most cost- effective corrective action alternative. Three bids and Cost Preapproval: Only corrective action costs required by the regulatory agency to protect human health, safety and the environment can be claimed for reimbursement. You must comply with all regulatory agency time schedules and requirements and you must obtain three bids for any required corrective action. Unless waived in writing, you are required to obtain preapproval of costs for all future corrective action work. If you do not obtain three bids or a waiver of the three bid requirement, reimbursement is not assured and costs may be rejected as ineligible. If you have any questions,please contact me at(916) 341-5761. Sincerely, Barbara Rempel Claims Review Unit Underground Storage Tank Cleanup Fund cc: Mr. Gordon Boggs ✓Ms. Margaret Lagorio RWQCB, Reg. 5 - Sacramento San Joaquin County EHD 11020 Sun Center Drive P.O. Box 2009 Rancho Cordova, CA 95670 Stockton, CA 95201 California Environmental Protection AgenCv I Recl cled Awper