SITE INFORMATION AND CORRESPONDENCE

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r ' WILD, CARTER, TIPTON & OLIIVVE � Mr. Glenn Dembroff October 10, 1991 Page 3 underground facilities, PHS/EHD required that monitoring wells be constructed. These wells, at a cost of over $16,000, were paid for by the Lessors. In total, Lessors in good faith provided the Lessee with renovated underground tanks and piping facilities suitable for its operation at a cost of over $77,000 or in excess of the first six years' rental at the facility. Lessors, in consideration of the signing of the Lease and receipt of monthly rental, turned over to Lessee, possession of the leased Premises. Lessee was in control of the Premises including the underground tanks and piping. Provisions of the Lease required Lessee "...to maintain the premises and improvements in good condition "...(lease provision VI. A.), as well as..." undertake inventory controls and reconciliations so as to detect as soon as possible any underground leaks. Any such leaks shall be promptly reported to Lessor." (lease provision X. B.) During the first 6 -plus years of the Lease, Lessee has in fact performed tightness tests on the underground facilities including inventory controls and reconciliations to detect leaks. The monitoring wells that were constructed at Lessors' expense are another type of testing device to detect leaks to the soil or groundwater. Obtaining samples and submitting quarterly reports to PHS/EHD is an operational function and maintenance obligation of the Lessee, not the Lessors. As your company has been in possession and control of the Premises for almost seven years this letter is to request that you as operator and the primary responsible party arrange and pay for the quarterly monitoring report to be submitted to PHS/EHD. My clients do not intend to assume the responsibility of performing or paying for the quarterly monitoring reports at the captioned site. They are concerned, however, that the site be in compliance with PHS/EHD regulations. A representative of PHS/EHD has advised me that full compliance is expected by November 14, 1991. If the quarterly report is not submitted as requested, Notices of Violations will be issued by the Central Valley Regional Water Quality Control Board to both Ultramar, the primary party, and my clients.