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LAW OFFICES OF WILLLALML A. SCIIUC132L- '- David J. Irey Page 2 May 16, 2000 Your pleading alleges three inconsistent quantities of carbon dioxide which you claim give rise to various requirements. As I am sure you are aware, H & S Code § 6382(a) requires that a substance is not hazardous (and thus will not trigger a safety -plan requirement) unless it is in a physical state, volume or concentration effecting health. Thus, without knowing what quantity you are alleging, I cannot ascertain whether Carbon Dioxide is a hazardous substance as allegedly handled by the defendants. Without your specifying what quantity is alleged, the defendant cannot relate your allegation to the quantity that by law or regulation triggers a safety -plan requirement. The defendants raise this issue for good reason as the notices provided to them by the Government prior to your lawsuit quantified the Carbon Dioxide in pounds and alleged that defendants' handling of quantities far less than 500 pounds triggered the requirement. Your complaint alleges that the quantity handled by the defendants exceeded 500 pounds and is inconsistent with the facts as previously alleged by the Government. Compounding the deficiency of your pleading is your failure to allege that whatever quantity you claim the defendants handled met the § 6382 threshold, thus failing to allege a violation of law and causing the complaint to be demurrable under CCP § 430.1(e). This entire matter may simply and easily be resolved by your stating which quantity you are alleging and that such a quantity was in such a physical state, volume or quantity that it meets the § 6382 threshold. If you are alleging that handling any of the three quantities triggers the requirement regardless of whether that quantity effects health, just tell me that in writing and we can Proceed accordingly. Separately, my client denies that he reneged on any settlement. The offer as he understood it was to settle a disputed claim on a walkaway basis. Apparently you then attempted to change the deal by requiring a judgment. If you have documentation to the contrary (such as a written offer including the proposal for a judgment) please provide it to me immediately. Yours very truly,,,—_ WILLI.AM A. SCHUCK1MAN WAS/jf CC: Mr. George Badway