SITE INFORMATION AND CORRESPONDENCE

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♦ i 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 4 On or about January 25, 1999, while Unocal was performing the additional characterization work at the Site, the Division of Clean Water Programs informed the Central Valley Regional Water Quality Control Board ("the Regional Board") of its intention of recommending closure of the Site to the State Board at its March 13, 1999 workshop. [Exhibit 7 - State Water Resources Control Board memorandum to Gary Carlton,Executive Officer, Central Valley Regional Water Quality Control Board from Edward C. Anton, Chief, Division of Clean Water Programs, dated January 25, 1999,with draft order attached.] Meanwhile, after several months of discussions and negotiations, Unocal and the District Attorney agreed to a settlement "in principle" on February 17, 1999, whereby Unocal agreed to pay penalties for all alleged underground storage tank violations associated with its former service station sites in San Joaquin County to date, leaving the District Attorney's insistence that Unocal withdraw its petition for review and closure of the Site and the allocation of penalties for further discussion. Correspondence dated February 17, 1999 to Deputy District Attorney David Trey from Unocal's attorney confirming their settlement discussions is attached as Exhibit S. Unocal and the District Attorney subsequently agreed to an allocation of penalties. However, Unocal stood fast on its refusal to withdraw the petition for closure and informed the District Attorney that it believed his request to be inappropriate. Unocal also told him that if the State Board did not issue an order closing the Site, Unocal would undertake the additional corrective action required for closure of the Site. [Exhibit 9 - Letter to David J. Irey, Deputy District Attorney, Environmental Prosecutions Unit, from Sherri M. Kirk, dated March 2, 1999.] After considering PHS/EHD's and the Regional Board's comments on the proposed closure orderl and the report of Unocal's supplemental site characterization work performed at the Site during January and February 1999, the Division of Clean Water Programs staff concluded, on or about March 22, 1999, that the report of the supplemental work at the Site "contains no new information that would alter the conclusions and recommendations for closure presented in the draft order." [Exhibit 11 - State Water Resources Control Board memorandum to James George Giannopoulos, Chief, Regulatory Programs Branch and Edward C. Anton, 1 Attached hereto as Exhibit 10 is a Regional Board memorandum to GLB,WJM, and GMC from Mark R. List,dated February 16, 1999,objecting to closure of the Site.