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BRAY, GEIGER, RUDQUIST, NUSS & PARISH <br /> ATTORNEYS AT LAW <br /> MART 5. BRAT 400 BANK OF STOCMTON BUILDING <br /> MC*tOM RUTMCR10R0 I1661•t6561 <br /> OEHM15 OOMAlO GCIG[R 0, R, JAC0i5 11611.11701 <br /> JOHP, 1. 1Up0.51 311 EAST MAIN STREET STCPHEM 01 ,,,ICM 11,06•8I1rtl <br /> JAMES T. C. MUSS STOCKTON,CALIFORNIA 95202 <br /> WILLIAM M. PARISH Of C004Su <br /> T000 p.MOTSE TELEPHONE 948-0434 CODE B09 PHILIP CAVALERO.411,110 <br /> OOMALO M. STCYEMSOM [� <br /> f RAMCETS M.10SHIMURA July 17, 1987 <br /> Steven P. McDonald, Esq. <br /> Dorazio, Barnhorst & Bonar <br /> P. O. Box 880209 <br /> San Diego, CA 92108--0005 <br /> Re: Bank of Stockton/Port of Stockton <br /> Your File No. 1051. 01 <br /> Dear Mr. McDonald: <br /> My client, Bank of Stockton, has asked me to answer <br /> your letters regarding Port of Stockton' s lease with Energy <br /> Petroleum, Inc. Your previous letters asserting that Bank of <br /> Stockton is responsible for maintaining the underground <br /> storage tanks is based on several factual misconceptions. My <br /> investigation of this matter indicates that Bank of Stockton <br /> is not responsible for the storage tanks that exist on your <br /> property. <br /> In the past, Bank of Stockton extended loans to <br /> Energy Petroleum, Inc. As part of these loans, the Energy <br /> Petroleum, Inc. lease was pledged as security. As you know, <br /> Energy Petroleum, Inc. defaulted and filed for bankruptcy. <br /> Bank of Stockton obtained relief from the automatic <br /> stay in order to pursue its remedies as a secured party. <br /> Upon obtaining relief from the automatic stay, Bank of <br /> Stockton secured the leased premises in order to protect its <br /> personal property collateral . After publishing notice of <br /> public sale, Bank of Stockton conducted an auction on the <br /> property. You should be aware, however, that Bank of <br /> Stockton never assumed the lease, never foreclosed its <br /> security interest in the lease, and never took title to the <br /> underground storage tanks. Consequently, Bank of Stockton <br /> was neither an owner nor an operator of the premises. After <br /> completion of the public sale, Bank of Stockton paid the <br />