SITE INFORMATION AND CORRESPONDENCE

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Mr. Michael Infurna May 22, 1996 Page 3 Autotronic Systems Inc.,Mary Lehmkuhl,,,and Edward and Leroy Hoegerman wereat I er joined as defendants. The parties spent a considerable amount of time in the discovery process, during which voluminous documents were exchanged and many depositions of material and expert witnesses were taken. Although the parties were interested in reaching a settlement of the litigation,they were initially unable to do so because the type and amount of additional remediation work which the County would require were uncertain. In order to advance the opportunities for settlement,in.late 1995 the parties requested a meeting with PHS-EHD officials for the purpose of'learning:.about the CounWs evaluation ofandregulatory plans for dealing with the contamination M JAN.1 U A,RY.1996 MEETING WITH.PHS-EHD On January 22; 1996 representatives of the FDIC, Texaco:and ARCO met with Wiane Hinson, Supervisor of the PHS-EHD Site Mitigation Unit.2 Our meeting with Ms. Hinson addressed.many topics, and several conclusions were reached. First,, we discussed the report issued by thelLawrence Livermore National Laboratory in October, 1995.. entitled "Recommendationa to Improve th-Ueanup Process for California's Leaking Underground Fuel Tanks:(LLWW.(the"LINt Report")and the resulting December.861995 interim guidance from the Siate Water'Resources Control Board to all Regional Water duality Control Boards andlocalagencies ('SWRCB Guidance"). In summary, Report concluded that fiid Hydrocarbon releases from underground fuel tanks have limited J impacts s. on human:health,the vrivirprM and California's groundwater resources. Th,e, eport recommended that.regulatory agencies close cases after source removal. and rely on passive. bioremediation to retnediate fuel hydrocarbon releases. The SV.MCB YX +Giudance directed oversight agencies toptoceed:aggressively to close low risk, sail-only cases. S.ecpn4,..we - discusstd.specifie contamination zoncernslat the 305 S. 9p- y Hutchins,: rt. Third..we property . discussed the options for achieving"closure" of the site. The conclusionsreached Ms. Hinson areas follows... F. t Ms.with g. First; Hinson stated that the County willl ftbrrequire any remediation of petroleum hydrocafbans in.1the groundwater beneaththe site under Aftyltircurnstances. Ms. Hinson concluded that the We learned-at:thes vo .:that meeting that a schedule conflict unfortunately precluded you from attending. We are also aware thatDiane Hinson has since left her position with.PHS-. EHD, and is now employed by the Arty of Stockton.