SITE INFORMATION AND CORRESPONDENCE FILE 2

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Ms. Terry bell July 15, 2003 Page 4 UST system may have been a source of unauthorized releases as late as April of 2003. 1. Recent Groundwater Sampling Indicates Unauthorized Releases During Palisades' Tenure VEW3 was installed in 1997,just fifteen(15) feet from Palisades' UST system.6 Soil samples collected at the time of the well's installation did not Bingham McCutchen LLP contain concentrations of total petroleum hydrocarbons as gasoline ("TPH-g"), binghom.com benzene, toluene, ethyl benzene and xylenes ("BTEX') or volatile organics (using EPA Method 8240) at or above laboratory reporting limits. See Moise Decl., Ex. 4. Additionally, groundwater samples collected at VEW3 in 1999 and 2001 confirm that BTEX, TPH-g and MtBE (using EPA Method 8260) were not detected at or above laboratory reporting limits. Id. at Exs. 2 and 3. As the 1997 soil sampling and 1999 and 2001 groundwater monitoring results demonstrate, there is no evidence of hydrocarbon impacts during installation of VEW3 or monitoring of VEW3 through 2001. Contrary to the 1999 and 2001 groundwater sampling, groundwater samples collected in 2002 and 2003 from VEW3 reveal sudden spikes of MtBE and TBA, strongly indicating new releases from Palisades' UST system. In March and May of 2002, groundwater samples collected from VEW3 detected concentrations of MtBE at 30,300 micrograms per liter("ug/L") and 16,350 ug/L, respectively. These results prompted the SJCEHD's September 2002 unilateral issuance of an Underground Storage Tank Unauthorized Release (Leak)/Contamination Site Report("URR'), identifying Palisades as the responsible party for the releases.' Further, in December of 2002 and March of 2003, analysis of groundwater samples collected from VEW3 detected maximum concentrations of MtBE and TBA at 54,000 ug/L and 21,000 ug/L, respectively. In its Petition, Palisades sidesteps addressing these recent elevated concentrations of MtBE and TBA in VEW3. First, Palisades suggests that 6 VEW3 as well as all other wells referred to herein are designated on the site map attached as Exhibit 1 to the Declaration of Ted Moise(the "Moise Decl.") filed concurrently herewith. The SJCEHD's September 31, 2002 URR is attached hereto as Exhibit A.