SITE INFORMATION AND CORRESPONDENCE

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STARSKY & KIRK LLP ATTOP14M AT LAW SUITE 264 601 tYNIVE SM AVENUE SACRAIMM. CALIFORNIA 95925-6720 THLEPHON$ (916) 567-39W TELECOP1T;it (916) %7-3%7 March 30, 1999 VIA TELECOPIER 249146$-03141 AND U.S. MAIL David J. Irey, Esq. Deputy District Attorney Environmental Prosecutions Unit " Office of the District Attorney San Joaquin County Courthouse P.O. Box 990 Stockton, CA 95201 Re: Unocal- Stockton Service Stations Dear Mr. Irey: This is to follow up our telephone conversation of March 24, 1999, wherein we continued our discussion of the agreement "in principle" reached by San Joaquin County and . Union Oil Company of California on February 17, 1999. During our conversation, you repeated your request that as a condition of the settlement, Union Oil withdraw its petition for closure of the .1665 Pacific Avenue site that is currently before the State Waxer Resources Control Board. You also asked that I convey your request concerning the petition to Mr. Nierniec again. Union Oil continues to believe that it has a right to seek a State Board Wiling on its petition. It also believes that your insistence that it relinquish that right is unreasonable and inappropriate for the reasons previously stated. We are disappointed to.have gotten this close to settlement to have it now appear that the parties' efforts may have been wasted. Nevertheless, we are hopeful that you will reconsider your request and that the parties can settle these matters on the terms and conditions outlined in my February 17, 1999 letter: Whatever the State Board's decision, Union Oil will abide by it. If the State Board orders the site closed, no further action will be required and any violations alleged to have occurred before closure of the site will be resolved by the settlement. If the State Board does not issue an order closing the site, Union Oil will continue to perform appropriate corrective action at the site. EXHIBIT 12