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RECEIV D-, Q: 799 <br />NOV 3 a MR <br />Ultramar'' <br />ENWlR ONMENTAL 4ALTH <br />Ultramar Inc. PER 1-1/ URVIC, Telecopy: 209-584-6113 Credit & Wholesate <br />P.O. Box 466 209-583-3330 Administrative <br />525 W. Third Street 209-583-3302 Information Services <br />Hanford, CA 93232-0466 209-583-3358 Accounting <br />(209) 582-0241 <br />October 25, 1991 <br />Ij <br />M. L. Ehrlich, Esquire <br />Wild, Carter, Tipton & Oliver is <br />246 West Shaw Avenue <br />Fresno, California 93710 <br />Re: Environmental Responsibility at <br />3300 Waterloo Road <br />Stockton, California <br />Dear Mr. Ehrlich: <br />Your letter to Mr. Glenn Dembroff dated October 10, 1991, has been referred <br />1� <br />to me for response. Please be advised that all future correspondence should be directed to <br />my attention. <br />After reviewing your letter, as well as the terms -;and conditions of the Lease dated <br />December 1, 1984 ("Lease"), between this company (fbrmer,,Iy known as the Beacon Oil <br />Company) and your clients, and in light of the facts surrounding this matter, our previous <br />position has not changed, and we disagree with your interpretation of the Lease and the <br />facts referred to in your letter. At the risk of sounding redundant, our position is that costs <br />or damages relating to any leaks emanating from undergi6und facilities are the responsibility <br />of your clients. As you referred to in your letter, Section'l <br />X of the Lease expressly states in <br />pertinent part. that: <br />"...Lessee shall not be responsible for any cost or damages <br />resulting from any leaks from the underground acilities ... any <br />1 <br />leaks from the underground facilities..." (emphasis added). <br />k <br />It is true that your clients have fulfilled some of their obligations with respect to <br />incurring certain costs which have emanated from the failed tank test and product leak in <br />question. Your clients', however, cannot unilaterally elect to ignore their remaining <br />obligation to incur the costs which have been, or may continue to be, further incurred as a <br />consequence of the 1986 tank test failure and the investigation initiated due to the failure. <br />ii <br />AN <br />BEACV4 kv <br />#1 Quality and Service <br />A Member of the Ultramar Group of Companies <br />