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Ms. Carol Browner
<br /> Hon. Pete Wilson
<br /> Ms. Felicia Marcus, et al.
<br /> October 9, 1995
<br /> Page 4
<br /> Morton Paint is the former owner and operator of Site 3. Alco Industries is the
<br /> successor in interest of Morton Paint. At and around this site, Morton Paint generated,
<br /> handled, stored, transported, managed, and/or disposed of solid wastes which may now
<br /> present an imminent and substantial endangerment to health or the environment.
<br /> Plaintiff City of Stockton sent a Notice of Intent to File Suit under 42 U.S.C.
<br /> Section 6972(a)(1)(B) via a letter dated November 9, 1994. See Exhibit A, attached.
<br /> On June 6, 1995, the City of Stockton filed a complaint against L&M
<br /> Petroleum, Mr. Leabo, Mr. McKinnon, and Union Oil in the United States District Court
<br /> for the Eastern District of California, entitled City of Stockton v Union Oil Company,
<br /> Case No. CIV-S-95 1103 WBS JFM ("The Stockton litigation"). This complaint alleged a
<br /> claim under SWDA and various state common law claims. Union Oil has filed a third-
<br /> party complaint against Morton Paint and Alco in the Stockton litigation.
<br /> With regard to the SWDA claim, the City of Stockton alleges that an imminent
<br /> and substantial endangerment to health and the environment may exist at Sites 1 and 2 in
<br /> that solid wastes are present at these sites. To the extent that these allegations made by the
<br /> City of Stockton are adjudicated to be true, Union Oil believes any such adjudicated
<br /> endangerment is due to the past handling, storage, transportation, management and/or
<br /> disposal of solid waste by the City of Stockton, L&M Petroleum, Mr. Leabo, Mr.
<br /> McKinnon, Morton Paint, and/or Alco.
<br /> Union Oil therefore seeks judgment requiring the City of Stockton, L&M
<br /> Petroleum, Mr. Leabo, Mr. McKinnon, Morton Paint, and Alco to pay for the costs Union
<br /> Oil has incurred or will incur in identifying, analyzing, monitoring, investigating, and/or
<br /> remediating any soil or groundwater contamination at or around Sites 1, 2 and 3. To the
<br /> extent Union Oil is held liable for the claims raised in the City of Stockton's Complaint,
<br /> Union Oil will also seek a judgment requiring these parties to pay for all damages,
<br /> attorneys' fees, civil penalties, or associated costs Union Oil may be required to pay.
<br /> In addition, Union Oil will seek an injunction ordering the City of Stockton,
<br /> L&M Petroleum, Mr. Leabo, Mr. McKinnon, Morton Paint, and Alco to undertake future
<br /> remediation at and around Sites 1, 2, and 3.
<br /> 59543.1
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