SITE INFORMATION AND CORRESPONDENCE

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THE KIRK LAW FIRM Ms. Lori Casias Associate Government Program Analyst State of California Water Resources Control Board Division of Clean Water Programs June 3, 1999 Page 3 Steven Sasson and Margaret Lagorio, dated March 3, 1997; Declaration of Robert A. Boust.] Following receipt of PHS/EHD's March 3, 1997 letter, Unocal petitioned the State Board for closure of the Site,pursuant to Health and Safety Code section 25299.39.2(h), on June 13, 1997. [Exhibit S — Letter to Mr. David Deaner and Mr. James Munch, State Water Resources Control Board, Division of Clean Water Programs, Re: Underground Storage Tank Case Review/Closure Report, from Erin Garner, R.G., Senior Geologist, Pacific Environmental Group, Inc., dated June 13, 1997.] The petition is still pending before the State Board. A little more than two weeks after Unocal petitioned the State Board, PHS/EHD wrote to Unocal acknowledging that it had received a copy of the June 13, 1997 petition for closure and scheduling an "administrative office hearing" on the Site and two other former Unocal service station sites in Stockton. The letter offered no basis for the need for an "administrative office hearing" other than to discuss "compliance with our directives," thus clearly indicating that the only reason for PHS/EHD's action was its unhappiness over Unocal's petition for closure. [Exhibit 6 - Letter to Unocal Corporation (Bob Boust) from Margaret Lagorio, Supervising RENS, Site Mitigation Unit, dated July 1, 1997.] Unocal believes that it was at about this time that PHS/EHD referred the Site, along with one of the other former service station sites, to the District Attorney for enforcement action. Prior to this time, PHS/EHD had given Unocal no indication that there were non- compliance issues associated with either of the sites, and since that time, the District Attorney has refused Unocal's repeated requests to set forth the alleged violations in writing. See Declarations of Robert A. Boust and Sherri M. Kirk. Although it was not aware of any PHS/EHD directive that it had failed to comply with, and in spite.of having submitted what it believed to be a meritorious petition for closure that should be allowed to run its course, on April 28, 1998, Unocal representatives met with Donna Heran, Director of PHS/EHD, and her staff in an effort to determine what could be done to address PHS/EHD's concerns about the Site. As a result of the meeting, Unocal agreed to submit a workplan for additional characterization of the site. The workplan was approved by PHS/EHD in August 1998, the work completed during January and February 1999, and the report of the supplemental work submitted to PHS/EHD on February 26, 1999, all at considerable cost to Unocal. See Declaration of Robert A. Boust.