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Request for decision to reimburse "Pending" clean up costs. <br /> Wright prepared a Corrective Action Plan (CAP) dated March 27, 2003, (Exhibit <br /> 2) that evaluated possible cleanup methods and provided preliminary cost <br /> estimates based upon the limitations expressed therein for each of the three <br /> clean up methods evaluated for the site The CAP was then submitted to the <br /> San Joaquin County Environmental Health Division (EHD), the lead agency <br /> charged with oversight for this site and a copy was provided to the Regional <br /> Water Quality Control Board, Region 5 case officer, Mr James Barton who <br /> directed Wright to do so <br /> Comments by a State Fund, Technical Reviewer who is unknown to Wright <br /> indicated that the CAP showed Dual Phase Extraction "to be the more cost <br /> effective" method in comparison to Excavation This interpretation of the CAP <br /> apparently led the reviewer to make a tentative determination to not reimburse <br /> for remediation by excavation and removal of source contaminants, and to <br /> identify $276,731 75 of those actual remediation costs incurred by Claimant as <br /> "Pending" until further information was provided to evaluate if the method used <br /> for clean up was "acceptable to the appropriate regulatory agency' thus making <br /> them eligible for reimbursement as provided for in section 2812 2(b) of the Fund <br /> reimbursement guidelines Claimant calls to your attention the following facts <br /> that substantially prove all costs incurred to date were for "corrective action work <br /> acceptable to the appropriate regulatory agency" San Joaquin County, EHD <br /> CAP did not "show it" Dual Phase (Option 2), to be the more cost <br /> effective method However, the CAP did propose that Dual Phase was a <br /> possible method and such a system, along the lines specified in the CAP <br /> when operated for an 18-month period after obtaining all the approvals <br /> identified in pages 12 through 15 of the CAP, may well be the "second <br /> most cost effective" of the three evaluated clean up methods <br /> ® Wright initially recommended to Regulators and Claimant that an "in-situ" <br /> biologic degradation and enhanced bio-cleanup (Option 3) appeared to be <br /> the "Most cost effective method" However, later Mr Barton, the RWQCB <br /> reviewer indicated to the EHD that pilot studies and testimonial of use in <br /> the area and a Report of Waste Discharge in part were required before <br /> any injection of any biologics would be approved, thereby, adding <br /> additional costs and an undetermined amount of time to further study <br /> Option 3, prior to implementation of any clean up effort Upon learning of <br /> this feed back after discussions with EHD it became apparent that clean <br /> up by excavation was in fact the most cost effective method and the <br /> method most acceptable to the appropriate regulatory agency and as a <br /> direct result, altered prior beliefs by Wright of the cost effectiveness of <br /> Option 3 in the CAP <br /> • <br /> Page 2 of 7 <br />