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CHICAGO OFFICE <br />SEARS TOWER. SUITE 6900 <br />CHICAGO. ILLINOIS 60606 <br />TELEPHONE (312) 616700 <br />TELECOPIER (312) 993-9767 <br />TWX 910 221-03SS <br />LATHAM & WATKINS <br />ATTORNEYS AT LAW <br />SOI "B" STREET, SUITE 2100 <br />SAN DIEGO, CALIFORNIA 92101-8197 <br />TELEPHONE (619) 236-1234 <br />TELECOPIER (619) 696-8281 <br />LOS ANGELES OFFICE <br />555 SOUTH FLOWER STREET <br />LOS ANGELES. CALIFORNIA 90071-2.68 <br />TELEPHONE (2131 46S-1234 <br />CABLE ADDRESS LATHWAT <br />TWX 910 321-3733 <br />ISLECOPIER (213) 6130-2098 <br />October 10, 1985 <br />NEWPORT BEACH OFFICE <br />660 NEWPORT CENTER DRIVE. SUITE 1400 <br />NEWPORT BEACH, CALIFORNIA 92660 <br />TELEPHONE 1714) 752-9100 <br />TELECOPIER (714) 7S9-8891 <br />CERTIFIED MAIL <br />RETURN RECEIPT <br />REQUESTED <br />Mr. Lee Ellis <br />S.P. Services <br />2941 Navy Drive <br />Stockton, California 95203 <br />PAUL R. WATKINS 11999-19731 <br />DANA LATHAM (1896-19741 <br />NEW YORK OFFICE <br />437 MADISON AVENUE. SUITE 1400 <br />NEW YORK, NEW YORK 10022 <br />TELEPHONE (212) 319-2570 <br />TELECOPIER 1212) 751-4864 <br />TELEX TRT IT1-128 <br />TWX 510 100-0655 <br />WASHINGTON. O.C. OFFICE <br />1333 NEW HAMPSHIRE AVE., N.W. SUITE 1200 <br />WASHINGTON. O.C. 20038-1594 <br />TELEPHONE 12021 S2B-4400 <br />TELECOPIER 12021 828-4415 <br />TWX 710 822-9375 <br />Re: Potential Groundwater Contamination <br />Dear Mr..Ellis: <br />We have been informed that the results of recent <br />geophysical investigations in the vicinity of Stork Road and <br />Washington Street indicate that shallow groundwater in that <br />area may be contaminated by petroleum products or constituents. <br />While this information is preliminary, it does raise concerns <br />for our client, the Port of Stockton, both with respect to <br />the safety of operations at the Port and other legal issues <br />that could arise under the Porter -Cologne Water Quality <br />Control Act, the California Hazardous Waste Control Law, the <br />California hazardous Substance Account Act, the Clean Water <br />Act, the Resource Conservation and Recovery Act, the Compre- <br />hensive Environmental Response, Compensation and Liability <br />Act, or other federal, state and local laws, regulations and <br />ordinances. <br />In light of the data made available to us, it must <br />be determined whether your activities at the Port may have <br />resulted in a release of petroleum products to groundwater, <br />and the nature and extent of any such contamination. We <br />would prefer for this determination to be made with the <br />cooperative assistance of Port tenants who engage in <br />petroleum handling activities, and therefore ask that you <br />provide us copies or descriptions of any information, data <br />or reports you may have concerning groundwater quality and <br />hydrology in the vicinity of the Port or petroleum handling <br />