SITE INFORMATION AND CORRESPONDENCE FILE 2

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Ms. Terry hNeell. July 15, 2003 Page 8 Palisades claims in its Petition that its leak detection monitoring systems, including tightness and secondary containment tests as well as monitoring alarms, have not detected releases from Palisades' UST system, and, hence, its system has not leaked. Even without the Tracer test results (which strongly suggest that the system may be leaking), Palisades' arguments lack merit. On May 15, 2002, the SJCEHD cited Palisades for three UST monitoring violations at the Site, two of which raise suspicion as to whether releases from Palisades' UST system have gone undetected.12 First, the SJCEHD cited Bingham McCutchen «P Palisades for violation of section 2626(f)(1) of Title 23 of the California Code binghom.com of Regulations, under which Palisades' secondary containment must be equipped"with a continuous monitoring system that either activates an audible and visual alarm or stops the flow of product at the dispenser when it detects a leak."13 With respect to this violation, the SJCEHD inspector noted the following: "The dispenser pans installed at the facility are Bravo boxes. When inspected it was found that the chains attached to the floats were too long to trigger the shear valve. The chains need to be shortened to trigger the shear valve." See Ex. C. This violation suggests that Palisades' monitoring system could not adequately detect releases, and, consequently, any such releases would have gone undetected. Second, the SJCEHD cited Palisades for violation of section 2712(b) of Title 23 of the California Code of Regulations, under which Palisades must maintain written monitoring and maintenance records.14 With respect to this violation, the inspector noted the following: "Please begin to use the form provided. Record alarms daily and any corrective action taken. Begin the practice immediately." See Ex. C. Because Palisades was not maintaining such records, the violation suggests that any releases from Palisades' UST system were not being documented. Consequently, Palisades' claim that its monitoring systems did not detect releases from its UST system is irrelevant and provides no support for Palisades' position that that SJCEHD improperly named it as an RP. "'The SJCEHD's May 15, 2002 UST Program Inspection Report is attached hereto as Exhibit C. 13 Cal. Code of Regs., tit. 23 § 2626(f)(1) (2003). 14 Id. § 2712(b).