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LAW OFFICES <br /> DORAZIo, BAHNHORST & BoNAR <br /> A PROFESSIONAL CORPORATtlON <br /> HOWARD J. BARNHOR'5T II 438 CAMINO DEL Rio SOUTH, SUITE B-223 <br /> VIRGINIA G. SONAR P.O. BOX 880209 <br /> JOEL L. INCORVAIA <br /> LAUREL LEE HYDE SAN DIEGO, CALIFORNIA 9210$-0005 STEVEN P. M-OONALD <br /> CYNTHIA J.GLANCY (619) 297-8900 OF COUNSEL <br /> MARTHA O.ANDERSON TELECOPIER (619)297-7649 <br /> RORY R.WICKS TELEX 697103 BARNDOR MICHAEL OORAZIO,JR. <br /> ROBERT J.COLI RETIRED <br /> MICHAEL D.LIUZZI <br /> KAREN H.CANOFF -I <br /> CHRISSA N.CORDAY August 14 , 1987 <br /> MARK E.STUTZMAN <br /> Li <br /> Mr. Dan Moe SII; ' %7 <br /> Stockton Health District <br /> P. O. Box 2009 ENVIROME.NTAL HEALTH_ <br /> Stockton, California 95201 FERMIT/SERVICES, <br /> Re: Port of Stockton/Energy Petroleum <br /> Our File No. 1451. 01 <br /> Dear Mr. Moe: <br /> This letter is a follow-up to your recent conversation with <br /> Mark Meckler of my office regarding underground storage tanks <br /> installed on Port of Stockton ("Port") property by Peter W. <br /> Smith/Energy Petroleum. The tanks were installed while Mr. Smith <br /> was a lessee of the Port's land, and the Port itself is neither <br /> owner nor operator of these tanks. <br /> During your telephone conversation with Mr. Meckler, you <br /> indicated that the term "owner" in the underground storage <br /> regulations might include the owner of the property on which the <br /> tanks were located, i.e. the Port. However, Health & Safety Code <br /> section 25281 (g) defines "owner" as the "owner of an underground <br /> storage tank. " As the Port neither paid for nor took title to the <br /> underground storage tanks installed by Energy Petroleum, the Port <br /> cannot be defined as an owner. <br /> In the present case, there are two parties which may properly <br /> be ordered to remove the tanks or otherwise bring them into <br /> compliance with state law. Those parties are Energy Petroleum and <br /> the Bank of Stockton. Energy Petroleum purchased, installed and <br /> operated the underground storage tanks on Port property. At the <br /> present time, such tanks are still an asset of the bankrupt <br /> estate. Enclosed you will find a bankruptcy petition filed by <br /> Energy Petroleum which lists as an asset a "bulk plant" valued at <br /> $500, 000 . 00. The underground storage tanks are a part of the bulk <br /> plant. This makes the bankrupt estate an "owner" within the <br /> definition of Health & Safety Code. <br /> i <br />