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(b) Baseline Determination. The Baseline shall be determined by reference to <br /> existing information from studies performed by or for Seller, such as described in Seller's <br /> existing Environmental Remediation Services Business Plans for Real Property and <br /> Improvements. Within six (6) months of the Closing ("Baseline Development Period"), <br /> the Baseline can be augmented by further investigation that Purchaser determines in <br /> good faith is reasonably necessary to establish the Baseline. Such further investigation <br /> shall be performed during the Baseline Development Period (or if Seller in its sole <br /> discretion agrees to a longer period than six (6) months, during the period as Seller <br /> agrees). Such further investigation shall be performed at Purchaser's sole expense and <br /> shall not be included in calculation of the $200 Million Cap. Purchaser may further <br /> augment the Baseline after the six (6)-month period with in situ testing of the 76 Assets <br /> that Purchaser, during the Baseline Development Period, identifies is reasonably <br /> necessary to establish that a Release should be included in the Baseline, but only to the <br /> extent such testing is required by a lawful order of a government agency (with <br /> jurisdiction) to conduct such testing on such site or Seller agrees such testing is required <br /> under Environmental Laws (such agreement not to be unreasonably withheld). <br /> (c) Compliance Action Costs. Except as otherwise provided in this <br /> Section 4(c), Seller shall be responsible for the cost of Compliance Action ("Compliance <br /> Action Costs") which arise out of or result from operations or conditions before the <br /> Closing. Purchaser shall be responsible. for Compliance Action Costs which arise out of <br /> or result from operations or conditions after the Closing. Notwithstanding the foregoing, <br /> Purchaser shall be responsible for Compliance Action Costs associated with the <br /> construction and operation of facilities necessary to achieve selenium effluent limitations <br /> at Seller's San Francisco Refinery and the construction and operation of vapor recovery <br /> equipment at Seller's Los Angeles Refinery Marine Terminal to: (i) comply with <br /> Environmental Laws; or (ii) as may be required in connection with the renewal of <br /> Seller's existing lease for the Terminal. <br /> 5. Conduct Of Baseline Corrective Action. <br /> (a) If Baseline Corrective Action is required, Purchaser shall conduct and pay <br /> for such action, and Seller shall reimburse Purchaser in accordance with Section 4(a). <br /> During the time Seller is obligated to pay all or any portion of Baseline Corrective <br /> Action Costs, Purchaser shall, within twenty-four (24) hours after reporting to the <br /> appropriate government agency, notify Seller of any Reportable Quantity of a Hazardous <br /> Substance. If a Reportable Quantity of a Hazardous Substance is discovered in the soil, <br /> surface water, subsurface strata or groundwater at a 76 Asset after the Closing in an <br /> amount not readily distinguishable from the Baseline, Purchaser shall be responsible for <br /> the incremental Corrective Action costs associated therewith, and such costs shall not be <br /> included in the calculation of the $200 million cap. Purchaser shall provide to Seller <br /> information about such an event sufficient to estimate the incremental Corrective Action <br /> costs attributable thereto. Purchaser and Seller shall work together in good faith .to <br /> agree on such incremental costs. In the event the parties are unable to reach agreement <br /> on such incremental costs, the dispute may be submitted for dispute resolution in <br /> accordance with Section 10. <br /> 6. <br />