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Page 2 <br />Remediation of, or confirmation of clean closure of, the soil beneath Oxidation Ponds 1, 2, <br />and 3, and of the Long Pond (a.k.a. lower API and separator) as per the Approved Waste <br />Pile Number 4 Closure Plan. Remediation of the free product, and any associated dissolved <br />phase contamination, beneath the south end of Waste Pile Number 4. <br />In addition to the Closure Plan obligations described herein, WSR is responsible for $33,000 in <br />accumulated hazardous waste treatment fees due the Division. The Division believes that the above <br />obligations of WSR can be resolved by transfer of the Property to FMM and concurrent settlement <br />of the outstanding fees due to the Division. <br />If the transaction were to take place, the Division understands that FMM would accept <br />responsibility for all of WSR's remaining obligations under the Closure Plans-as they relate to the <br />Property, including but not limited to, remediation of the Acid Sludge Ponds groundwater and the <br />Oxidation Ponds and Long Pond closure issues. As part of the transaction, WSR will pay $10,000 <br />in settlement of the treatment fee debt to the Division. The Division expects to finalize closure <br />certification of the New Land Treatment Area soon thereafter. <br />The Division understands that the Property will be sold in'an arm's - length transaction for cash and a <br />note, and that FMM will indemnify WSR from any known environmental liabilities associated with <br />the Property. The Division further understands that WSR, with Division approval, will transfer <br />remaining remediation Trust Fund money (approximately $56,658) to FMM's remediation Escrow <br />Account. <br />Both FMM's and WSR's property at the Fiuita Refinery Site were previously coanunonly owned <br />by American Gilsonite Company, a subsidiary of Chevron Corporation, Gary Refining <br />Company,. a predecessor to WSR, and subsequently Landmark Refining, all of which contributed <br />to the contamination at the Site. Environmental contamination of the Fruita Refinery Site, while <br />not fully characterized, has undergone significant study. Significant further characterization of <br />both s6 Ts an d groundw—afer is necesary.to understand the nature and event of outstanding <br />environmental liabilities at the Site. That said, at this time the Division has no reason to believe <br />that the Property contains completely unknown environmental problems. <br />Because the degree of contamination of the Property is likely relatively established, such <br />contamination was in large part caused by neither WSR nor. F1vIM, and FMM's superior ability to <br />access the Property if the transaction takes place, the Division intends to look first to FMM and <br />its successors and assigns regarding remediation of the Property after the sale of the Property by <br />WSR to FMM. The Division also notes that remediation of groundwater contamination <br />emanating from the Acid Sludge Ponds could be addressed on a site -wide basis rather than a <br />unit- specific basis, after ownership of the Acid Sludge Ponds has been transferred by WSR to <br />FMM. <br />Please note that the Division and I are not and could not be authorized to guarantee that the State <br />will not seek to enforce environmental requirements against WSR, even should the sale of the <br />Property take place. The Division, however, does hereby agree to use best efforts to pursue all <br />available legal remedies against FMM and its successors or transferees of the Property, and to <br />