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BUSS CHAPIN 209-464-6947 08-14-95 68:03 P.02 PACT 4 the l Oe.kA if claihave Rod t tD��R A I/F : `9 ru►MnitLed their final nal ry reiment bursem request,the WJustment will be toads on the first request processed after July i, 1993. 'nis featurt answers questions of georaal indCrest raised by cWimants and other lnstructkms and furans fix requesting interested per, Questions on specific the adjugunent will be mauled stxm. claims will apt be addressed and should be referred to your claims repreeentattve. If you have any questions of general inierest, please Financial send them to the address listed on Page 1 sof Inwoo- Now Financial this Update. When the Rind reimburses a claimant for capital equipment(e.g., a Responsibility Q mlvr atrartion system), dries Mr Funsd then take ownership of the equtprnertt r�1'er the prcyect hrotrtpteieriP Qvidelines f Capiu d equipment is informally defined as nonexpendable machinery Aar other goods which are used during a corrective action project,and lkhkb have a residual useful life after the project. Examples include % new Financial Ressptxetibility reawdiaticm systems made of pumps, blowers,air stripping arwcrs or ,Guidefinm tmx*let will soon be internal combustion eMines and appurtenances. Items such as piping, aavai{ahle from the UST Cleanup encicmures, and the many other materials used in these projects are Kurd. consWeered to be wnwmed during the project. Capital equipment typically r has a useful life of five or more years. Financial responsibility must be shown,by owners and operators;of The Fund does w want to buy,tell or lease remediation equipment any peter euro UST systems if they are in more than it wants to buy, sell or lease b u ktwm or du"trucks. Theop operation on or after the established current Nand approach for capital equipment reimlrarwment is to pay for the compliance dates. use sof the equipmment at a fair rate as the equonesnt is being used,whether it is t4ased or purchased_ This it to ensure that there will be ftknxy to help pay for the cams of This raises the question, "What is a fair rate to Owge for equipment?" corre dive action and third party Historic lease ranee for remediation eayuipmem have been very high, such that liability caused by an unauthorized the cost of the equipment is recovered in as Wk as ane year. At those rates, trlepsc of petroleum from an the cost of a remediation system may be paid four or five times over during underground sluiage tank, its useful life. This is an ugaccepiatrte position to the Fucd arid, I consequently,purchase is t�scally the snore cost WMAive Option. .Vor questions regarding financial tr:sponvihility, call Nancy conwho There are many considerations amocixted with the purchase of remediation dt(916)227-4397. Fuer a copy of equipment. These include the carrying of the pureh w price during the life the guideliftes,call dw Fund at(800) of the equipment (or amortization costs),the ability to sell the equipment or 813-FUNI). fuxl another Project for its uge after the initial project is complete, the handling of dowtuime,and the casts of maintenance and refuri ' ' ► fair mhcr3oese-wbuldow bear Vwkt�espo lues? The ulttrr►ate wen ccs that question will evolve as a formal put;i is elevektped as part of . the Fund's cosi guidelities. It is the FWW's cturent position that these com atnd tespansibilities should be slurred by the Fund,the claimant aim] the vendor(i.e.,the cG)mrnitant Of lessor). thmki-giowad 5turW T"Cleanup F