SITE INFORMATION AND CORRESPONDENCE FILE 2

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Ms. Terryell July 15, 2003 Page 7 Thus, despite Palisades' suggestions, increased concentrations of MtBE and TBA in groundwater samples collected from VEW3 in 2002 and 2003 indicate that unauthorized vapor releases occurred at the Site during Palisades' ownership and operation. These recent releases fully support the SJCEHD's naming of Palisades as an RP. Accordingly, the SWRCB should deny Palisades' Petition. 2. A Tracer Test Performed at the Site Indicates Bingham McCurchen LLP Unauthorized Releases During Palisades' Tenure bingham.com Further supporting SJCEHD's naming of Palisades as an RP is the April 2003 Tracer test of Palisades' UST system. This test reveals that Palisades' UST system(fifteen(15) feet from VEW3) has apparent undetected vapor leaks. See Moise Decl., Ex. 5 for a copy of the Tracer results. In its Petition, Palisades anticipated that the Tracer test would not indicate a leak. Far from this, the testing identified multiple potential UST system leaks. Id. The test results identify possible sources of intermediate level releases of Tracer A and Tracer W at the Tank 1-2 annular space and the fill at Tank 2,respectively, and a release of Tracer R and total volatile hydrocarbons near the sump of Tank 3. Id. In fact, regarding the latter, the test report even suggests that"a possible liquid release" occurred. Id. The SJCEHD responded to the Tracer test results in May 2003 by issuing its second URR for the Site within eight(8) months, again identifying Palisades as the responsible party for the release." The Tracer test results indicate that Palisades' UST system is the likely source of new unauthorized releases at the Site and undermine any claim by Palisades that their UST system is not a source of potential leaks. Coupled with the MtBE and TBA spiking in 2002 and 2003, the Tracer test results provide ample credible and reasonable evidence to support SJCEHD's naming of Palisades as an RP. Accordingly, the SWRCB should affirm the SJCEHD's action and deny Palisades' Petition. (Footnote continued from Previous Page.) 7-11 site (the potential upgradient offsite source) do not suggest an offsite source for the 2002 and 2003 MtBE and TBA levels in VEW3. See Moise Decl., Exs. 2 and 3. " The SJCEHD's May 21, 2003 URR is attached hereto as Exhibit B.