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Homer J. Olsen, Inc. <br /> GENERAL ENGINEERING CONTRACTORS P. 0. Box 993 • 35500 Olsen Way <br /> Store Ucense No.231261 Union City,California 94587 <br /> Phone: (510)489-1661 <br /> February 13 , 1995 FAX: (510)489-8089 <br /> Don Culbertson <br /> Chevron Pipeline Co. <br /> Western Business Unit <br /> 5080 California Ave. Suite 400 <br /> Bakersfield, CA 93390-1671 <br /> Subject : Contamination at 35500 Welty Road, Vernalis, CA <br /> Former Site of Standard Oil Co' s . Vernalis Pumping <br /> Station and Pipeline <br /> Dear Mr. Culbertson: <br /> Homer J. Olsen Inc. has made a proposal to purchase the subject <br /> property contingent on a satisfactory environmental assessment . <br /> We have now completed a modified Phase I and Phase II site <br /> assessment. The report prepared be Geological Technics Inc. <br /> (copy enclosed) shows ground contamination from diesel fuel and <br /> what appears to be crude oil . <br /> As indicated in the report, the diesel fuel and crude oil <br /> contamination is suspected to have been generated by Standard <br /> Oil Company's Vernalis Pumping Station operation and/or possibly <br /> by leakage coming from the collateral pipeline passing through <br /> the site. One theory is that the pump station boiler plant was <br /> diesel fired and the diesel now found in the ground came from <br /> leakage out of boiler fuel storage tanks located either above or <br /> below ground. The crude oil (which may or may not prove to be <br /> toxic) came either from pipeline leakage or from spillage at the <br /> pump station. <br /> Since the cleanup of the ground at this site will very likely <br /> become a governmental requirement eventually and since the <br /> knowledge of this contamination is now in the public record we <br /> would not want to purchase the property without knowing that the <br /> remediation expense would be borne by others when the time came <br /> to do the cleanup. Please let us know what position Chevron Oil <br /> Co. (as successor to Standard Oil Co. ) would have with regard to <br /> taking responsibility in this matter. <br /> It is noted that the property in question still has the Standard <br /> Oil Co. easement for the pipeline and pump station attached to <br /> the title. We would be interested in modifying that easement so <br /> that it only runs along the eastern edge of the property and the <br />