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LAW OFFtCES <br /> D©HAZIo, BAEN`HOIRST & B©NAR <br /> A PROFESSIONAL CORPORATION <br /> HOWARD J. BARNHOR'S7 II 438 CAMINO DEL RdO SOUTH, SUITE 8-223 <br /> VIRGINIA G. BONAR P.O. BOX 880209 <br /> JOEL L. INCORVAIA <br /> LAUREL LEE HYDE SAN DIEGO, CALIFORNIA 92108-0005 MICHAEL DORAZIO,JR. <br /> CYNTHIA J.GLANCY (619) 297-6900 RETIRE❑ <br /> STEVEN P. MCDONALD TELECOPIER(619)297-7649 <br /> MARTHA O.ANDERSON TELEX 697103 BARNDOR <br /> ROPY R.WICKS <br /> ROBERT J.COLI <br /> MICHAEL 0, LIUZZI <br /> KAREN H.CANOFF <br /> CHRISSA N.CORDAY <br /> MARK E.STUTZMAN <br /> DAVID S.COHN A� <br /> ROBIN F. LAKE March 15, 1988 1 <br /> LARI CROCE STREETER <br /> GARY G.ALLEN <br /> NIP <br /> Ronald L. Valinoti , RSA �-� <br /> San Joaquin Local Health District CNVIRlIENrAL HEALTH <br /> P. o, Box 2009 <br /> Stockton, California 95201 FEr<Aer/SEftVICEs <br /> Re: Zort of Stockton/Energy Petroleum <br /> Our File No. 1 -01 <br /> Dear Mr. Valinoti: <br /> Recently, the Port of Stockton received an inspection report from <br /> the Health District regarding underground storage tanks installed <br /> on Port property by Peter W. Smith/Energy Petroleum. These tanks <br /> were installed by Mr. Smith as a lessee of Port land, and the <br /> Port is neither the owner nor operator of these tanks. <br /> The Port is very disturbed that the Health District is now <br /> identifying the facility ( i .e. , the underground tanks) as <br /> belonging to the Port and implying that the Port has primary <br /> responsibility in respect to those tanks. By letter dated <br /> August 14, 1987, we informed the Health District regarding the <br /> presence of these tanks and that responsibility for the tanks <br /> rested with Pete W. Smith and Energy Petroleum as the <br /> owner/operator of the tanks, or The Bank of Stockton, due to the <br /> bank' s assumption of Energy Petroleum' s lease and possession of <br /> Energy Petroleum assets, including these tanks. By that letter <br /> and contemporaneous telephone conversations, we urged the Health <br /> District to take immediate action directly against Mr. Smith, <br /> Energy Petroleum or The Bank of Stockton to resolve any issues <br /> regarding compliance of these underground storage tanks. <br /> Now, eight months later, the Health District appears to be acting <br /> as if Mr. Smith, Energy Petroleum, Inc. and The Bank of Stockton <br /> never existed nor had responsibility for these tanks. As we <br /> informed you in August, the existence of a bankruptcy proceeding <br /> does not preclude issuance of an order to Energy Petroleum or Mr. <br /> Smith to comply with the health and safety laws. See, e.g. , In <br /> re Quanta Resources Corp_, , 739 F. 2d 912 ( 3d Cir. 1984 ) . To <br />