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Unocal Corporation Diversified Business Groh 3761 WWI 1 Valencia Avenue Brea,California 92823 Telephone(714)577-2932 Facsimile(714)577-2980 E-mail PNiemiec@unocal.com UNOCAL 76 November 14, 1997 Peter J.Niemiee Assistant Counsel Asset Management Group Ms.Mary Meays Senior REHS San Joaquin County Public Health Services Environmental Health Division 304 East Weber Avenue 3`'Floor Stockton,California 95202 RE: 4707 Pacific Avenue, Stockton CA Dear Ms.Meays: In response to our meeting in your offices on Monday, November 10, 1997, enclosed is a copy of the Environmental Agreement between Union Oil Company of California and Tosco Corporation. This Agreement is a supplemental agreement to the Sale and Purchase Agreement for 76 Products Company,dated December 14, 1996 which is the agreement pursuant to which Union Oil Company of California transferred its operating refining and marketing assets to Tosco. As I have informed you,the closing date on that sale was April 1, 1997. Pursuant to Paragraph 5(a) of the Environmental Agreement, Tosco agreed to conduct all "Baseline Corrective Action." As you can see from looking at Paragraph I(b)of the Environmental Agreement, `Baseline" means all releases that occurred prior to closing. Thus, Tosco agreed to address all releases at stations that it acquired pursuant to this Agreement. Also note that Tosco agreed to pay the first$7 million of `Baseline Corrective Action Costs" on an annual basis and 40%of the amount of such costs above the annual cap. In your memo to me of November 10, you noted that you requested a"list of contractual agreements since January 1, 1997 between consultants; MPDS, GeoStrategies and Pacific Environmental; and Unocal and Tosco . . ." I indicated to you at the meeting that I did not think that such a list would be helpful in resolving who actually paid for work done at the 4707 Pacific Avenue station. At least with respect to Union Oil, these companies performed work for Union Oil under a master agreement, so that a list of such agreements would not be useful in determining how payments were made. Union Oil's files for this station do not reflect any invoices dated later than December 1, 1996. It is our current belief that later invoices for work done at the station are in possession of Tosco. However, according to Robert Boust, who is the project professional responsible for Union Oil's properties in San Joaquin County, and the individual who initially approves contractor's invoices for work done on behalf of Unocal in this area, the contractors in question were advised of the sale of assets to Tosco, and accordingly forwarded all bills for work performed after April 1, 1997 directly to Tosco.