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1. <br />« <br />L` <br />Mr. Bernard Vlach <br />August 13, 1991 <br />Page 3 <br />This interim condensate return program would continue until <br />such time as the City's aquifer treatment system became <br />operational. At that time, assuming successful royalty <br />negotiations with Stockton, Pacific Energy would complete the <br />installation of the non -returning sealed traps (if not already <br />completed) and route all plant and field condensate to the City's <br />aquifer treatment facility or alternate system. <br />This proposal is different than the one we discussed on <br />August 4, 1991 where I indicated that Pacific Energy would be <br />willing to stop the return of the facility condensate <br />immediately. Regrettably, further analysis has shown that this <br />interim solution is cost prohibitive. We estimate it will cost <br />at a minimum, $75,000 over a ten month period to have the <br />facility condensate disposed of. <br />Based on the above, we feel that it is in the best interest <br />of all the parties concerned that we work together to keep this <br />project operational. In that light, we urge you to consider and <br />accept our proposal which will not place any undue financial <br />burden on us, yet allow the City and County to continue receiving <br />the not insubstantial benefits of the project. I appreciate the <br />time you and your staff have spent working on this project and <br />hope to hear from you soon. <br />Respectfully yours, <br />A,� , � S./� <br />George E. Donlou <br />Manager of Biogas <br />Business Administration <br />GED:ew <br />cc: Ed Padilla -San Joaquin Public Health Services <br />Mike Miller -City of Stockton <br />