SITE INFORMATION AND CORRESPONDENCE FILE 2

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Ms. Terry A ell v July 15,2003 Page 2 As indicated in their Petition, Palisades has owned and operated the Site, including the underground storage tank("UST") system storing petroleum products, since November 21, 1997. This fact alone supports the SJCEHD designation of Palisades as an RP under California law. Evidence of unauthorized releases during Palisades' ownership and operation of the Site provides the SJCEHD with further credible and reasonable evidence to designate Palisades as an RP under California law. Because the SJCEHD has both the legal authority and factual support to name Palisades an RP,the Bingham McCutchen LLP SWRCB should deny Palisades' Petition. bingham.com I. THE SJCEHD PROPERLY DESIGNATED PALISADES AS AN RP A. The SJCEHD has the Authority and Credible and Reasonable Evidence to Designate Palisades as an RP The SJCEHD's designation of Palisades is consistent with California law. First, the SJCEHD is a local oversight agency under the SWRCB's Local Oversight Program("LOP"). The LOP provides for the"abatement of, and oversight of the abatement of, unauthorized releases of hazardous substances from underground storage tanks by local agencies."2 To implement the LOP, the SWRCB entered into an agreement with the SJCEHD "to perform, or cause to be performed, any cleanup, abatement, or other action necessary to remedy the effects of a release of hazardous substances from an underground storage tank."3 Thus, it is well within the SJCEHD's authority to identify RPs and take appropriate action to address releases. Second, the SJCEHD acted well within its authority in designating Palisades as an RP for the Site.4 Section 2720 of the California Code of Regulations defines an RP in relevant part as: (1) Any person who owns or operates an underground storage tank used for the storage of any hazardous substance; 2 Cal. Health& Safety Code § 25297.1(a) (West 2003). 3 Id. § 25297.1(b). 4 See Id. §§ 25297.15, 25299.36.