RECEIVED

CLERK’S

OFFICE

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

FEB

2~2OO5

FREEDOM OIL COMPANY,

)

STATE OF ILUNOIS

)

Pollution Control Board

Petitioner,

)

PCB

03-54

)

PCBO3-105

vs.

)

PCB 03-179

)

PCB 04-02

ILLINOIS ENVIRONMENTAL

)

(LUST Fund)

PROTECTION AGENCY,

)

PCB

03-56

)

(UST Appeal)

Respondent.

)

(Consolidated)

MOTION FOR DISCOVERY RELIEF

NOW

COMES

the

Petitioner,

FREEDOM

OIL

COMPANY,

an

Illinois

corporation, by its attorneys, Howard and Howard Attorneys, P.C., and for its Motion for

Discovery Relief, states as follows:

1.

On November

17,

2004,

Petitioner

submitted

discovery

requests

to

the

Illinois Environmental Protection Agency (“IEPA”) (Exhibit

1).

2.

Under

Illinois

Pollution

Control

Board

(“Board”)

Procedural

Rule

101.620(b),

the

IEPA’s

responses

were

due

within

twenty-eight

(20)

days

on

December 14, 2004.

3.

At

the

Board

status

hearing on

January

4,

2005,

hearing officer Webb

granted IEPA until January 27, 2005, to submit its discovery responses.

The hearing was

also set for March 2, 2005.

4.

As

of

February

21,

2005,

IEPA’s

discovery

responses

had

not

been

received by Petitioner notwithstanding Petitioner’s

inquiries into the

status of discovery.

(Exhibit 2).

THIS FILING IS SUBMITTED

ON RECYCLED PAPER

1

---

5.

Under

Board

Procedural

Rule

101.616,

discovery must

be

complete

at

least

ten

(10)

days

prior

to

the

scheduled

hearing

unless

the

hearing

officer

orders

otherwise.

As

the

hearing is

nine

days

from

today’s

date

and

discovery has not

been

received, this

deadline cannot be satisfied.

6.

Based on IEPA’ s failure to

provide discovery in

a timely manner prior

to

hearing,

Petitioner requests relief under

Board

Procedural Rule

101.800.

In particular

that

the

TEPA

be

barred from

introducing

into

evidence

any

testimony,

information

or

document

not

disclosed

to

Petiticiner

as of January

27,

2005

(the

date indicated

in

.the

January 4, 2005,

Order).

WHEREFORE,

the Petitioner,

FREEDOM

OIL COMPANY,

asks

the Board

to

grant this

Motion forDiscovery Relief.

Respectfully submitted,

HOWARD

& HOWARD ATTORNEYS, P.C.

By:

~M.

~JJ~

Diana M. Jagi

I

Dated:

February 21, 2005

Diana M. Jagiella

Attorney for Petitioner

Howard & Howard Attorneys, P.C.

One Technology Plaza, Suite 600

211 Fulton

Street

Peoria, IL

61602-1350

THIS FILING IS

SUBMITTED ON RECYCLED PAPER

2

---

CERTIFICATE OF SERVICE

I, the undersigned,

hereby

certify

that

on

this

215t

day

of February,

2005,

I have

served the attached

Motion for Discovery Relief

by

facsimile and

by depositing

same via

first-class U.S. mail delivery to:

Dorothy M. Gunn, Clerk (312/814-3669)

Illinois Pollution Control Board

State ofIllinois Center

100 West Randolph, Suite

11-500

Chicago, IL

60601-3218

Hon.

Carol Webb

(217/524-8509)

Hearing Officer

Illinois Pollution Control Board

600

S. Second Street, Suite 402

Springfield,

IL 62704

Diana M. Jagiella

Howard & Howard Attorneys, P.C.

One Technology Plaza, Suite 600

211 Fulton Street

Peoria, IL

61602

(309) 672-1483

man\G:\F\Freedom OiI\pldgs\Motion

for Discovery Relief.doc

John J. Kim, Assistant Counsel (217/782-9807)

Division ofLegal Counsel

Illinois Environmental Protection Agency

1021 North Grand Avenue East, P. 0. Box

19276

Springfield, IL

62794-9276

O~ciiiL

Diana

M.

Petitioner

Ja~ielh~fjAtt&ne~

for

THIS FILING IS

SUBMITTED ON RECYCLED PAPER

3

---

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

FREEDOM OIL COMPANY,

)

)

Petitioner,

)

PCB 03-54

)

PCBO3-105

vs.

)

PCBO3-179

)

PCB 04-02

ILLINOIS ENVIRONMENTAL

)

(LUST Fund)

PROTECTION AGENCY,

)

PCB

03-56

)

(UST Appeal)

Respondent.

)

(Consolidated)

FIRST SET OF INTERROGATORIES

AND

REQUESTS FOR PRODUCTION OF DOCUMENTS TO

RESPONDENT

Pursuant to the General Rules ofthe

Illinois

Pollution Control Board (hereafter “Board”),

specifically

Section

101.620(a)

(35

Ill.

Admin.

Code

101.620(a)),

Petitioner

serves

the attached

Interrogatories

and

Requests

for Production

of Documents

upon

the Respondent.

Answer

the

attached

separately,

fully,

in

writing,

and

under

oath.

Deliver a

true

copy

of your answers

or

objections to the undersigned attorney within twenty-eight (28) days ofservice.

INSTRUCTIONS

FOR

INTERROGATORIES

Petitioner, by and through the undersigned attorney, propound the attached questions to

you

under the provisions ofSection

10 1.620(a) (35 Ill.

Admin. Code 10 1.620(a)).

The answers may be

offered in evidence at the hearing in this case.

In

answering

these

Interrogatories,

furnish

all

information

available

to

you,

including

information in the possession ofyour attorneys or their investigators and all persons acting in your

behalf and not merely such information known ofyou or ofyour own personal knowledge.

Ifyou

cannot answer the Interrogatories in full after exercising due

diligence to

secure the information,

so

THIS FILING IS SUBMITTED ON RECYCLED PAPER

1

EXHIBIT

.0

.0

---

state in your answer and, to

the extent possible,

answer stating whatever information or knowledge

you have.

The

questions

which

follow are

to

be

considered as continuing,

and

you are requested to

provide by

way of supplemental answers

hereto

such additional

information as you

or any

other

person acting

on you

behalfmay hereafter

obtain

which

will augment or otherwise modify your

answers

given

below.

Such

supplemental responses

are

to

be

filed and

served

upon

this

party

immediately upon receipt ofsuch information.

INSTRUCTIONS FOR REQUESTS FOR PRODUCTION OF DOCUMENTS

You

are

required to

serve

upon

Petitioner,

by

and

through

the

undersigned

attorney,

a

written response which shall

state, with respect to

each item or category ofitems,

that

inspection

and copying will be permitted as requested.

The documents shall be produced as they are kept in

the regular course of business, or shall be organized and labeled by you

to correspond to

any items

or categories of items

in this

request.

All

objections

to

any

item or categories

of items

or parts

thereof, and the reasons for such objection, shall be specifically stated in yourresponse.

With

respect

to

any

documents

responsive

to

this

request

which

you

have

declined

to

produce by reason ofany claim ofprivilege or immunity, please state (1) the author and recipient, if

any,

of such document;

(2) the

date of the document;

(3) a

description ofthe nature

and

subject

matter ofthe

document; (4) the grounds upon which the privilege is

asserted; and

(5)

the name and

address ofthe present custodian ofthe document.

THIS FILING IS

SUBMITTED ON RECYCLED PAPER

2

---

DEFINITIONS

As used herein, the following terms

shall have the meaning indicated below.

A.

“Persons”

means

natural

persons,

corporations,

partnerships,

sole

proprietorships,

associations or any other kind ofentity or its agents, servants, and employees.

B.

“You”

and “your” means the parties to whom these questions are directed

as well as

agents,

employees, attorneys, investigators, subsidiaries, affiliates and

all other “persons”

acting for

said

party.

Provided,

however,

the inclusion

of attorneys

is not

meant to

and

does not seek

any

information or documents protected by the attorney-clientprivilege orthe work product doctrine.

C.

“Respondent” is defined as the Respondent named in this administrative proceeding,

and any ofits agents, servants, employees, subsidiaries, or affiliates.

D.

The term “documents” shall mean writings ofevery kind, source, and authorship,

both

originals

and

all

non-identical

copies

thereof,

in

your possession,

custody,

or

control,

known by

you to

exist irrespective of whether the writing

is intended for or transmitted to

any

other

person

or

entity,

including

without

limitation

any

government

agency,

department,

administrative

entity, or personnel.

The term

shall include

handwritten,

typewritten,

printed,

photocopied,

photographic,

or recorded pictures,

sound recordings,

films,

tapes,

calculations,

permit

reviewer

notes,

and

information

stored

in,

or

accessible

through,

computer

or

other

information

storage

or

retrieval

systems,

together

with

the

codes

and/or

programming

instructions

and other materials necessary to

understand that use such systems.

For purposes of

illustration and not limitation, the term shall include:

Affidavits, agendas, agreements, analyses,

announcements,

bills,

statements

and

other

records

of obligations

and

expenditures,

books,

brochures,

bulletins,

calendars,

canceled

checks,

vouchers,

receipts

and

other

records

of

payment,

charts,

drawings,

checkbooks,

circulars,

collateral

files

and

contents,

contracts,

THIS FILING IS

SUBMITTED ON

RECYCLED PAPER

3

---

corporate

by-laws,

corporate charters,

correspondence, credit files and

contents, deeds

of trust,

deposit

slips,

diaries, drafts,

files, guaranty

agreements,

instructions,

invoices,

ledgers, journal

balance sheets, profit and loss statements, and other sources offinancial data, letters, logs, notes,

or memoranda oftelephonic or face-to-face conversations, manuals, memoranda of all kinds,

to

and

from any persons,

agencies,

or entities;

minutes,

minute

books, notes,

notices, parts,

lists,

papers,

press

releases,

printed

matter

(including

published

books,

articles,

speeches,

and

newspaper clippings); purchase orders, records ofadministrative, technical, and financial actions

taken

or

recommended;

reports,

safety

deposit

boxes

and

contents

and

records

of

entry,

schedules,

security

agreements,

specifications,

statement

of

bank

accounts,

statements,

interviews,

stock

transfer

ledger,

technical

and

engineering

reports,

evaluations,

advice,

recommendations,

commentaries,

conclusions,

studies,

test

plans,

manuals,

procedure,

data,

reports,

results,

and

conclusions;

summaries, notes,

and

other

records

and

recordings of any

conferences,

meetings,

visits,

statements,

interviews

or

telephone

conversations;

telegrams,

teletypes and other communications sent or received, transcripts oftestimony, UCC instruments,

work

papers

and

all

other

writings,

the

contents

of which

relate

to,

discuss,

consider,

or

otherwise refer to

the subject matter of the particular discovery requested.

The term shall also

include

data or information that exists

in

electronic or magnetic form.

To

the extent

that such

information exists

in

electronic

or magnetic

form,

this

information shall

be

produced in

hard

copy form (printed on regular paper).

The term “documents”

also includes

all such documents, as defined above, whether in the

actual possession or under the actual or constructive control ofthe individual who

is requested to

produce such documents.

THIS

FILING IS

SUBMITTED ON RECYCLED PAPER

4

---

The

term

“documents”

also

includes

documents

which

are

considered

privileged.

If a

“document” is considered privileged, such document shall be identified by the type ofthe document,

its subject matter, its

author, its date, present location ofthe custodian ofdocument,

and the grounds

alleged for the claim of “privilege.”

E.

In those instances when requested information is

stored only on computer hardware

or

software or other data compilations,

the

responding

party should

either

produce the raw

data

along with all codes and programs for translating itinto usable form, orproduce the information in a

finished usable form that includes all necessary glossaries, keys, and indices for interpretation ofthe

material.

F.

The conjunctions

“and”

and

“or”

are interchangeable

and

the

meaning

is

always

“and/or.”

G.

“Including” shall mean “including, but not limited to.”

H.

“Communication” shall mean any

method or means by which information, oral or

written,

is

exchanged,

including,

but

not

limited

to,

any

telephone

conversation,

meeting,

discussion,

letter,

facsimile,

telex,

telegram,

electronic

mail

or

any

other

means

by

which

information was received by you, ortransmitted by or to you.

I.

“Constructive Control”

is defined to include, but not be limited to, all documents (as

defined above)

in the possession or under the control of other individuals or entities other than the

party

requested

to

produce

same,

when

such

other

individuals

are

subcontractors,

other

state

agencies, attorneys, relatives, corporations or partnerships owned or controlled by the party, banks,

safety-deposit boxes and other places designed for the safe-keeping ofrecords or personal property.

J.

“Identify” should be interpreted as requiring the following:

with respect to persons,

the person’s

full

name,

last known address

and

telephone

number;

with

respect

to

non-natural

THIS FILING IS SUBMITTED ON RECYCLED PAPER

5

---

persons

(e.g.

a corporation),

its

name, registered

agent, address of its

principal place of business,

registered

address

(if different

from

principal place

of business)

and principal

business activity.

With

respect

to

documents

or things,

the

term

“Identify”

should

be

interpreted

as

requiring

sufficient information regarding the item so that the party seeking discovery can locate and identify

the object as readily as the party from whom it is being sought.

K.

“Reference to Documents”

In those instances when the responding party chooses to

answer a request for information by referring to

a specific

document or record, it is

requested that

the

specification

be

in

sufficient

detail

to

permit

the

requesting party

to

locate

and

identify

the

records and/or documents from which the answer is to

be

ascertained, as readily

as can the party

served with the request.

L.

“Document

Destruction”

It

is

requested

that

all

documents

and/or

other

data

compilations

that might

impact on

the subject matter of this

litigation

be

preserved

and

that

any

ongoing

process

of

document

destruction

involving

such

documents

cease.

In

the

event

a

responsive

document

has

been

destroyed

or

is

no

longer

in

the

possession

or

control

of the

Respondent,

it

is

requested

that

the

Respondent

identify

the

document

and

explain

any

such

circumstances.

M.

“Petitioner”

is

defined as the Freedom

Oil

Company,

its

representatives, agents,

servants,

employees, subsidiaries, or affiliates.

N.

The

abbreviation “IEPA”

or “agency”

shall refer to

the Illinois

Environmental

Protection Agency.

0.

References

to

“Freedom

Facility”

and

“Facility”

shall

mean

the

buildings,

equipment and

ancillary

equipment located

at the common

address of 401

S. Main

St.,

Paris,

Illinois, Edgar County.

THIS

FILING IS

SUBMITTED ON RECYCLED PAPER

6

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P.

“Clean

Up Costs”

shall mean

the

costs

incurred by

Petitioner to

remediate

and

address

petroleum

releases

at

the

Facility

under

Incidents 20020433

and

2021122

for which

Petitioner requestedreimbursement from the Lust Fund.

Q.

“Underground Storage Tank,” “Tank” or “UST” shall have the meaning

set forth

in 41111.

Admin. Code

§

170.400.

R.

“Ineligible

Tanks” shall mean underground storage tanks

designated by the state

as tank Nos.

7

through

11

which

were

not registered

with

the Illinois

Office of the

State Fire

Marshall under 41111. Admin. Code

§

170.440.

S.

“Eligible

Tanks”

shall mean underground

storage tanks

No.

1

through

6

which

were

registered

with

the Illinois

Office of the

State

Fire

Marshall under

41111.

Admin.

Code

§170.440.

T.

“Lust

Fund”

shall mean the underground

storage tank fund

as described

in

415

ILCSS/57.8.

If Respondent

fmds

the

meaning

of

any

term

in

these

Interrogatories

unclear,

then

Respondent should

assume

a reasonable meaning,

state what that assumed meaning is, and answer

the Interrogatory on thebasis ofthat assumed meaning.

INTERROGATORIES AM) REQUEST TO PRODUCE

INTERROGATORY

NO.

1:

Please

identify

each person

who

participated

in

preparing

the

answers to these Interrogatories.

ANSWER:

THIS FILING IS SUBMITTED ON RECYCLED PAPER

7

---

INTERROGATORY NO.

2:

Please list the name, address, and telephone number of any person

who is expected to be called to testify at hearing.

ANSWER:

INTERROGATORY NO.

3:

Please list the anticipated subject matter oftestimony to be given by

the persons identified in the above stated INTERROGATORYNO.2.

ANSWER:

INTERROGATORY NO.

4:

Please state the basis

for the assertions

in the December

18,

2002,

IEPA correspondence that gallonage associated with tanks

1,

5, 6,

7, 8,

9 and

10 were not eligible to

access the LUST Fund for reimbursement purposes.

Please state whether IEPA continues to

assert

this contention is factually and/or legally correct.

ANSWER:

REQUEST TO PRODUCE NO.

1:

Please produce all

documents relating

to or evidencing your

answer to the above statedINTERROGATORY NO.4.

THIS FILING IS SUBMITTED

ON RECYCLED PAPER

8

---

INTERROGATORY NO.

5:

Please state the basis for the agency’s decision in its

December

18,

2002, correspondence to apportion 44.186

ofthe clean up costs to tanks not eligible

to access the

LUST Fundfor reimbursement purposes.

ANSWER:

REQUEST

TO

PRODUCE

NO.2:

Please produce all

documents relating

to

or evidencing your

answer to the above stated INTERROGATORY

NO.5.

INTERROGATORY NO.

6:

Please

state the

basis

for the agency’s decision

in its

March

19,

2003, correspondence to

apportion 20.93

ofthe clean up costs to

tanks not eligible to access the

LUST Fund forreimbursement purposes.

ANSWER:

REQUEST

TO

PRODUCE

NO.3:

Please produce all

documents relating to or evidencing your

answer to the above stated INTERROGATORYNO.6.

INTERROGATORY NO. 7:

Please state the basis for the agency’s decision in its May 28, 2003,

correspondence to apportion

19.05

of the clean up

costs to

tanks not eligible

to access the LUST

Fund for reimbursement purposes.

THIS FILING IS SUBMITTED ON RECYCLED PAPER

9

---

ANSWER:

REQUEST TO PRODUCE

NO.4:

Please produce all

documents relating to or evidencing your

answerto the above statedINTERROGATORY NO.7.

iNTERROGATORY

NO.

8:

Does the IEPA contend

gallonage

or petroleum

associated with

tanks 7,

8,

9,

10 and/or

11

caused or contributed to the need for clean up

at the site with regard to

Incidents 20021122,

20020433

and/or 20021420?

If so,

state

the factual and legal

basis

for this

contention.

ANSWER:

REQUEST

TO PRODUCE

NO.5:

Please produce

all

documents relating to or evidencing your

answerto the above stated INTERROGATORY NO.

8.

INTERROGATORYNO.

9:

Please identify the facts in support ofand the legal basis for IEPA’s

conclusion set

forth in its December

18, 2002,

March

19, 2003,

and May 28, 2003, correspondence

that apportionment of the

clean up costs to

tanks

7,

8,

9,

10 and/or

11

is allowed under 415 ILCS

THIS FILING IS

SUBMITTED ON RECYCLED PAPER

10

---

REQUEST

TO PRODUCE NO.

6:

Please produce

all documents relating to or evidencing your

answerto the above statedINTERROGATORY NO.9.

INTERROGATORY NO.

10:

Please explain

the

basis for the state’s denial

of $247,267.17

in

corrective

action

costs

given

that

correspondence

from

the

state made representations

corrective

action

costs

would

be

reimbursed

from

the

Fund

on

August

16,

2002,

August

23,

2002,

and

September 3, 2002.

(See Attachment 1)

ANSWER:

REQUEST

TO PRODUCE NO.

7:

Please produce all

documents relating to or evidencing your

answerto the above stated INTERROGATORYNO.

10.

INTERROGATORY

NO.

11:

Does

the

state

contend any

of the corrective

action

costs

were

associated with or necessitated by the presence of the Ineligible Tanks?

If so, state the factual basis

for this contention.

Also, identify what specific corrective action was necessitated by the Ineligible

Tanks.

ANSWER:

THIS FILING IS SUBMITTED ON RECYCLED PAPER

11

---

REQUEST TO PRODUCE

NO.8:

Please produce

all

documents relating to

or evidencing your

answerto the above stated INTERROGATORY NO.

11.

HOWARD & HOWARD ATTORNEYS, P.C.

By:

____________

Diana M. Jagiell

Dated: November 17, 2004

Diana M. Jagiella

Attorney forPetitioner

Howard & HowardAttorneys,

P.C.

One Technology Plaza, Suite 600

211

Fulton Street

Peoria, IL

61602-1350

THIS FILING IS SUBMITTED ON RECYCLED PAPER

12

---

CERTIFICATE OF SERVICE

I, the undersigned, hereby certify that on this

17th

day ofNovember, 2004, I have served the

attached

FIRST

SET

OF INTERROGA TORIES AND

REQUESTS

FOR

PRODUCTION OF

DOCUMENTS TO RESPONDENT,

by depositing same via first-class U.S. mail delivery to:

John J. Kim, Assistant Counsel

Division ofLegal Counsel

Illinois Environmental Protection Agency

1021 North Grand Avenue East, P.O. Box 19276

Springfield,

IL 62794-9276

~

DianaM. Jagiella, A

o

ey~or Petitioner

Diana M. Jagiella

Howard & Howard Attorneys, P.C.

One Technology Plaza, Suite 600

211

Fulton Street

Peoria,

IL

61602

(309) 672-1483

man\G:W\Freedom Oil\pldgs\Interrog&ReqtoProduce.doc

THIS FILING IS

SUBMITTED ON RECYCLED PAPER

13

---

B

.eld

Bills

Kalsmazoo

Lansing

Pc

Howard ~

Howard

law

for

business

direct dhil: 309.999.6309

Diana M.

Jagiella

email: djagiella®howardandhoward.cwn

September 3, 2002

James L.

Morgan,

Assistant

Attorney General

Office ofthe Attorney General

500 S. Second Street

Springfield, IL

62706

Via Facsimile

—

(217) 524-7740

Re:

Freedom Oil, Pails,

Illinois

Dear Jim:

In response to your September

3, 2002 letter, wedo requestthat the actual costs be reviewed

by the IEPA Underground Storage

Tank

Section

and

that you

ask

for

an expedited review of

the

costs.

Confirmationof

reimbursement

will be necessary to obtain

financing

for

the

HOWARD & HOWARD AITORNEYS, P.C.

~L

Diana M. J

i

ha

cc:

John Waligore, Esq.

RichardPletz

Tod Rowe

Michael Owens

sw

0 \F\Frccdom Oil\cor\morgan9

3.02

doc

j

s.k

sb.l’

I

One

Technology

Plaza,

Suite

600,

211

Fulion

Sireet,

Peoria,

IL

61602.1350

309.672.1483

Fax:

309.672.1568

www.h21aw.com

---

OrncE

OF

THE

ATFORNEY

GENERAL

STATE

OF

ILLINOIS

Jim

Ryan

September 3, 2002

A1TORNEY GENER\L

Diana Jagiella

Howard & Howard

One Technology Plaza

211

Fulton Street, Suiie

600

Peoria,

IL 61602-1 350

Richard

S.

Pletz

Project

Manager

Harding ESE,

Inc.

8901

North Industrial Road

Peoria,

IL 61615-1 509

Re: Freedom Oil,

Paris, Illinois, UST

System Removal

Greetings:

I have reviewed

Mr.

Pletz’s letter of August 28, 2002, with representatives of IEPA’s

Emergency Response Unit.

We can

confirm that the

13 items

listed on the first page of the

letterare eligible for reimbursement from the LUST Fund.

Neither

I

nor the ERU staff can

weigh in on whether the estimated

costs will actually be approved.

That is the province of

IEPA’s UST Section and

is typically done on

the basis of actual bills submitted with a

reimbursement application.

If necessary,

I

can forward the estimate to the UST Section and ascertain whether they

could provide

any additional feedback.

I

cannot gauge how quickly they could respond but

would relay your desire for a quick turnaround.

Please call me

at 217-524-7506 if you

have any questions.

Ve(y truly yours,

~~/.7

/4

,-‘2~’James

L.

Morgan

~/‘

SeniorAssistant A

orney General

JM:jm

emc:

John Waligore

Tod Rowe

500 South

Second Street, Springfield,

Illinois

62706

(217) 782-1090

.

TIY:

(217) 785-2771

.

FAX: (217)

782-7046

100 West Randolph Street. Chicago.

Illinois

60601

(312) 814-300()

.

UY:

(312) 81-1-3374

.

FAX:

(3l’2)

81-1-3806

.~..

1001

East

Main,

Carbondale, Illinois

62901

(618) 529-6400

.

TTY:

(618) 529-6403

.

FAX:

(61$) 529-6416

---

OFFICE

OF

THE

ATTORNEY

GENERAL

STATE

OF

ILLINOIS

Jim Ryan

ATTORNEY

GENER.\L

August 23, 2002

Diana Jagiella

Howard & Howard

One Technology Plaza

211

Fulton Street, Suite 600

Peoria,

IL 61602-1 350

Re:

Freedom Oil,

Paris, Illinois, Your file no.

17273-1

Dear Ms.JagieUa:

I

am writing to

follow up on our discussion of the afternoon of August 23rd.

I

immediately spoke with representatives of IEPA ORU

and they agreed that expedited action by

the Office of State Fire Marshal on a request by Freedom to remove the entire tank system to

address gross subsurface contamination is called for here.

Tod Rowe left our conference to

immediately contact Bill Alderson of the Fire Marshal’s

Office to

ask for such expedited action.

I

can also confirm that removal of the tank system and demolition of the building as part

of the effort to

eliminate gross subsurface contamination would be reimbursable from the fund,

subject to the standard caveat regarding reasonable and customary costs.

Requests for

reimbursement would have

to

satisfy the other applicable requirements set forth

in Subpart F.

It is our intent that Freedom be reimbursed for appropriate response measures

and we will work

to assure that.

Please call me at 217-524-7506 if you

have any questions.

Very truly yours,

JM:jm

emc:

John Waligore

Tod Rowe

500

South Second

Strcet. Springfield.

Illinois

62706

(2)7) 782-1090

.

TrY:

(217)

785.2771

.

FAX:

(217) 782-7046

100

West

Randolph Street. Chicago.

Illinois

60601

(312)

81-1-3000

TrY: (312)

814-3374

.

FAX:

(312) 814-3806

.~-

1001

East Main, Carhondale, Illinois

62901

(618) 529-6401)

TTY: (618)

529-6403

.

FAX: (618) 529-6416

James

Senior

General

---

OFFICE

OF

THE

ATTORNEY

GENERAL

STATE

OF

ILLINOIS

Jim

Ryan

August

16

2002

ATTORNEY

GENERAL

Diana Jagiella

Tracy

C. Litzinger

Howard & Howard

One Technology Plaza

211

Fulton

Street, Suite 600

Peoria,

IL 61602-1 350

Re: Freedom

Oil, Paris,

Illinois, Your file no.

17273-1

Dear Ms.Jagiella:

I am writing to confirm discussions

at the August

15th hearing regarding Freedom’s

concern about avoiding expenses for removal of contaminated

soil

beyond 4 feet from the

outside diameter of the leaking underground

storage tank as an

early action

measure because

those

costs may not be reimbursed

by the LUST Fund without an approved

budget for

corrective action.

As was stated,

because of the documented threat to human

health and the

environment,

IEPA’s OER and LUST Section have determined

that OER should take the lead

and direct performance by Freedom of both

early action and

corrective action measures

pursuant to 35

Ill. Adm. Code 732.105.

It is the Agency’s practice that any action

directed by

OER as necessary to abate

an emergency situation will

be reimbursed

by the Fund if it does

not exceed the reasonable and

customary charges for such activity.

Furthermore, 732.405(d)

authorizes an owner/operator to

elect to proceed with corrective

action activities prior to the

submittal or approval of “an otherwise required” “corrective action plan or budget.”

Thus, we sought to overcome Freedom’s reluctance

to provide its neighbors and the

City of Paris with the significant protection that removal of the grossly contaminated so!! would

provide because that removal could include contaminated

soil from beyond 4 feet from the

outside diameter of the leaking

underground storage tank by

combining early action and

corrective action (hence the use of the phrase grossly contaminated soil

rather than just visibly

contaminated soil, the term previously used in Section 57.7(a)(1 )(B) and

now used in

Section

57.6 prior to

the pronouncement of the four-foot

rule)

since the contamination is likely to exceed

the four foot limit.

OER’s characterization as of the soil removal effort as both early action and

corrective action

should smooth over Freedom’s monetary concerns.

Requests for reimbursement would have to

satisfy the other applicable

requirements set

forth

in Subpart

F.

It is our intent that Freedom be

reimbursed for appropriate response

measures and we will work to

assure that.

501) South Second Street.

Springfield,

Illinois

62706

(217)

782-11)91)

.

TrY: (217) 785.2771

.

FAX:

(217) 782.71)46

100 West

Randolph

Street.

Chicago. Illinois

61)601

(312)

814-31)00

.

UI:

(312)814-3374

.

FAX: (312)814-3806.

~

L’.

~1O~)t

---

Please call me at 217-524-7506 if you have any questions.

JM:jm

emc:

John Waligore

Tad Rowe

L. Morgan

SeniorAssistant Attorney General

---

Ann Arbor

Bloomfield

Hills

Detroit

Kalamazoo

Lansing

Howard ~

Howard

law

for

business’

direct dial: 309.999.6309

Diana M. Jagiella

February 4,2005

Via Facsimileand U.S. Mail

John J.

Kim, Esq.

Division ofLegal Counsel

Illinois Environmental Protection Agency

1021 North GrandAvenue East

P. 0. Box

19276

Springfield, it

62794-9276

Re:

Freedom Oil Company, Paris, Illinois

Our File No. 17273-1

Dear John:

Last week you indicated the Freedom discovery would be in my office early this week.

I

still do not have the materials.

Would you please advise as to the status.

Sincerely,

HOWARD & HOWARD ATTORNEYS,

P.C.

~D~4:

~LdL~

Diana M.

a

iehla

man0:\F\Freedoni Oil\cor\IEPA Kim

2.4.05.doe

One

Technology

Plaza,

Suite

600,

211

Fulton

Street,

Peoria,

IL

61602.1350

309.672.1483

Fax:

309.672.1568

www.h21aw.com

---

RECEIVED

CLERK’S QFFICE

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

FEB

22

2005

FREEDOM

OIL COMPANY,

)

Petitioner,

)

PCB

03-54

)

PCB 03-105

vs.

)

PCBO3-179

)

PCB 04-02

ILLINOIS ENVIRONMENTAL

)

(LUST Fund)

PROTECTION AGENCY,

)

PCB 03-56

)

(UST Appeal)

Respondent.

)

(Consolidated)

AND ATTORNEYS’ FEES

NOW

COMES

the

Petitioner,

FREEDOM

OIL

COMPANY,

an

Illinois

corporation, by its

attorneys, Howard and Howard Attorneys, P.C., and for its MotiOn for

Partial Summary Judgment and Attorneys’ Fees, states as follows:

1.

Freedom purchased a gasoline station located at 401

S. Main Street, Paris,

Illinois, in

1985 (“Freedom Station”).

2.

Two release incidents

from underground storage tanks

(“USTs”) occurred

at the Freedom Station in

2002.

In April

2002 a shear valve on

Pump No.

1

leaked.

A

release was reported on

April 3, 2002,

and assigned Incident 20020433.

In August 2002

a tank liner failure

occurred.

A release

was reported

on August

7,

2002,

and

assigned

Incident 20021122.

3.

Michael

J.

Hoffman,

Richard Pletz

and

Terry Dixon

of MACTEC,

an

environmental

consulting

firm,

directed the corrective

action

on

behalf of Freedom

in

response to Incidents 20020433

and 20021122.

THIS FILING IS

SUBMITTED

ON RECYCLED

PAPER

1

---

4.

The

Illinois

Environmental

Protection

Agency

Office

of

Emergency

Response

(OER)

directed

the

corrective

action

on

behalf of the

state

in

response

to

Incidents 20020433

and 20021122.

5.

Prior to

2002,

eleven

(11)

USTs

were

located at the

site.

Six

(6) of the

USTs

(Tanks

1-6) were registered by Freedom with the Office ofthe

State Fire Marshall

(OSFM) under 41111. Admin.

Code

§

170.440.

Tank

5

was removed prior to

2002.

The

presence of tanks

7 through

11

was unknown and the tanks

were not registered

with the

OSFM.

Tanks

7

through

11

were

discovered

during

soil

excavation in

October

2002.

The volume,

product contents and

OSFM registration

status of all the tanks

is

set forth

below:

UST #

Volume

(gallons)

Product

Notes

1

4,000

Diesel

Registered with the Office of the State

Fire Marshall.

2

4,000

Gasoline

Registered withthe Office of the State

Fire Marshall.

3

4,000

Gasoline

Registeredwith the Office of the State

Fire Marshall.

4

4,000

Gasoline

Registered withthe Office of the State

Fire Marshall.

5

.

1,000

Gasoline

Registered with the Office of the State

Fire Marshall.

Removed prior to

2002.

6

1,000

Kerosene

Registered withthe Office of the

State

Fire Marshall.

7

500

Heating Oil

Not registered withthe Office of the

State Fire Marshall.

8

1,000

Gasoline

Not registered withthe Office of the

State Fire Marshall.

9

1,000

Gasoline

Not registered withthe Office of the

State Fire Marshall.

10

1,000

Gasoline

Not registered with the

Office of the

State Fire Marshall.

11

500

Heating Oilor

Used Oil

Not registered withthe Office of the

State Fire Marshall.

THIS FILING IS

SUBMITTED ON RECYCLED PAPER

2

---

6.

The

Office

of

the

State

Fire

Marshall

issued

Fund

Eligibility

determinations that clean up costs

for releases in connection with tank nos.

1, 2,

3, 4,

and

6 are eligible

for reimbursement from the Underground Storage Tank Fund in connection

with Incidents 20020433 and 20021122.

(Exhibit 1)

7.

Freedom

Oil

Company

submitted

three

reimbursement

applications

requesting a total of $1,012,240.99 in

costs

incurred to

remediate the releases associated

with both incidents.

8.

IEPA denied LUST

Fund reimbursement to

Freedom

in the total

amount

of

$293,733.95.

On

December

18,

2002,

$102,122.04

was

denied on

Reimbursement

Application

1

(Exhibit

2).

On

March

19,

2003,

$169,051.90

was

denied

on

Reimbursement Application 2

(Exhibit 3).

On May 28,

2003, $22,559.71

was denied on

Reimbursement Application

3

(Exhibit 4).

(Collectively, the “Denied Costs.”)

9.

The Denied Costs fall within the following categories:

Amount

Type

of

cost

$24,638.82

handling costs

$362.84

cell phone and mileage

$20,000.00

deductible amounts owed

$27.76

dye for tracer testing

$140.00

notice of smoke

testing

costs

$33 25

.

VHS

tape copies of sewer

investigation

$247,267.17

Corrective action

10.

IEPA denied the $247,267.17

in

corrective action

costs

under

415

ILCS

5/57.8(m)(1)

and 35 IAC 732.608 based on the presence ofineligible tanks.

11.

The amounts denied and the percentage of costs paid for eligible tanks for

each Reimbursement Application is set forth below:

THIS FILING

IS SUBMITTED ON RECYCLED PAPER

3

---

Application

Date of LEPA Action

Corrective Action

Costs Incurred

Amount Denied for

Ineligible Tanks

Percentage

Paid

Reimbursement Application

1

for costs between April

3, 2002

and August2, 2002

December

18,

2002

$185,644.12

$81,954.58

55.814

Reimbursement Application

2

for costs between August 2,

2002 and December 24, 2002

March

19,

2003

$709,748.50

$143,123.59

79.07

Reimbursement Application

3

for Costs between December 24,

2002 and February

11,2003

May28, 2003

$116,848.37

.

$22,189.00

80.95

TOTAL

$1,012,240.99

$247,267.17

12.

The

response

activities

conducted

from

April

2002

to

August

2,

2002,

associated

with

Incident

20020433

included:

(i)

emergency

response

—

mitigation

of

sewer by the high school; (ii) sampling old and new monitoring wells;

(iii)

investigating

the

high

school;

(iv)

air

monitoring

in

the

high

school;

(v)

investigating

the

sewer

surrounding

the

high

school

and

Freedom

Station;

(vi)

installation

of

two

interceptor/collection

trenches,

sampling

groundwater

from

trenches;

(vii)

exploratory

excavation

along

Crawford

Street;

(viii)

installation

of

four

groundwater

monitoring

wells and sampling;

and (ix) completion of and sampling of seven soil borings.

13.

Reimbursement

Application

1

sought

reimbursement

of

costs

for

the

foregoing activities in the amount of$185,644.12.

On December

18,

2002,

IEPA denied

$81,954.58

of the

requested

costs

based

on

the

presence

of

ineligible

tanks.

This

represented a reimbursement of

55.8

14

of the correction action costs.

In reaching the

55.814,

IEPA

found

tanks

1,

5,

6,

7,

8,

9

and

10

to

be

ineligible

for

fund

reimbursement.

IEPA applied the ratio ofgallons associated with the tanks it determined

were fund eligible

—

12,000, with the gallons associated with the tanks it determined were

not fund eligible

—9,500— to

reach the

55.8

14

apportionment.

(See Exhibit 2)

THIS

FILING IS SUBMITTED

ON RECYCLED PAPER

4

---

14.

In August 2003,

Petitioner met with IEPA to

discuss IEPA’s

allocation of

corrective action costs to the Ineligible Tanks.

15.

In

particular,

Petitioner

pointed

out

the

55.814

percentage

paid

on

Reimbursement Application

No.

1

was

clearly

erroneous,

as

demonstrated

by

IEPA’s

payment of 79.07

and 80.95

of the costs requested for the follow-up Reimbursement

Application Nos. 2 and 3.

(See Exhibits 2,

3 and 4)

16.

IEPA agreed that irrespective of whether an approximately 20

allocation

to Ineligible Tanks was appropriate, the

55.814

allocation was erroneous and Freedom

was owed

an additional

$44,827.76

(representing

payment to

reach an

80

percentage

paid).

IEPA

indicated the

paperwork

to

address

payment

of this

amount

would

be

addressed.

To

date, despite numerous

requests,

IEPA has not processed the paperwork

for reimbursement ofthis amount

to Freedom.

17.

It

is

undisputed

that

Freedom

is

entitled to

a

minimum of $44,827.76

in

additional

reimbursements

regarding

Reimbursement

Application

No.

1.

Due

to

the

necessity of Freedom having

to file a Motion for Partial

Summary Judgment to

obtain

recovery

of

an

undisputed

amount,

Freedom

is

also

entitled

to

its

attorneys’

fees

regarding this issue.

THIS FILING

IS SUBMITTED

ON RECYCLED PAPER

5

---

WHEREFORE,

the Petitioner, FREEDOM

OIL COMPANY,

asks

the Board

to

grant its

Motion for Partial

Summary Judgment and award it attorneys’ fees.

HOWARD & HOWARD ATTORNEYS, P.C.

By:

~

~h.

~

Diana M. Jagi

1

Dated: February 21, 2005

Diana M. Jagiella

Attorney for Petitioner

Howard & Howard Attorneys, P.C.

One Technology Plaza, Suite 600

211

Fulton Street

Peoria, IL

6 1602-1350

THIS FILING IS SUBMITTED ON RECYCLED PAPER

6

---

RECEIVED

CLERK’S

OFFICE

FEB

222005

CERTIFICATE

OF SERVICE

STATE

OF ILUNOtS

Pollution

Control Board

I,

the undersigned,

hereby

certify

that on

this

21st

day of February,

2005,

I

have

served the attached

Motionfor Partial Summary Judgment andAttorneys

‘

Fees

by facsimile

andbyU.S. Mail to:

Dorothy M. Gunn, Clerk (312/814-3669)

Illinois Pollution Control Board

State of Illinois Center

100 West Randolph, Suite 11-500

Chicago, IL

60601-3218

Hon. Carol Webb 217/782-9807

Hearing Officer

Illinois Pollution Control Board

600 S. Second Street, Suite 402

Springfield, IL 62704

John J. Kim, Assistant Counsel (217/782-9807)

Division of Legal Counsel

Illinois

Environmental Protection Agency

1021 North Grand Avenue East, P. 0.

Box

19276

Springfield,

IL

62794-9276

Diana

M.

Petitioner

Jagiella, ,4~tto ey

for

U

Diana M. Jagiella

Howard &

Howard Attorneys, P.C.

One Technology Plaza, Suite 600

211 Fulton Street

Peoria,

IL

61602

(309) 672-1483

THIS FILING IS

SUBMITTED ON RECYCLED PAPER

man\G:\F\FreedomOiI\pldgs\Motion for Partial Summary Judgment.doc

7

---

General Office

217-785-0969

FAX

217-782-1062

Olvialona

~ON

INVESTIGATION

217-182-9116

LER~nd

PRESSURE

VESSEL S/~FETY

217-782-2696

~I~EPREVENTION

217-785.4714

IAGEMENT SERVICES

217-782-9889

INFIRS

217785.5826

LIMAN RESOURCES

217.785-1026

SO$*461. STANDARDS

and

EDUCATION

217-782-4542

PETROLEUM and

~EMICAL SArET(

217485-5878

~8UC INPORI~IATION

217485.1021

WEB

SITE

w.”at&ILus(oafrn

August

1, 2002

Office

of the

State

Fire

Marshal

CERTIFIED MAIL

-

RECEIPT REQUESTED #7002

1000 0004 8741 6503

Arnold Owens, Inc.

dlbfa

Freedom Oil

814

W. Chestnut

P.O. Box 3697

Bloo1hgton, IL

61701-3697

Dea±

Applicant:

.hLRe:

FacilityNo.4-016564

1EMA Incident

No.

02-0433

Freedom Oil

Co.

401

8.

Main Street

•

Paris,

Edgar Co.,

IL

The.Reimbursement Eligibility and DeductibleApplication receivedon July

1 1;2002 for the above

referenced occurrence has beenreviewed.

The following deterniinátiotis havebee~

madebased upon

this -review.

•.

.

It has been determinedthat you are eligible to seekpayment of coats in excess nf$10,000.

The coSts

must be inresponse to the occurrencereferenced above aiid associated withthe followingtanks:

Eligible Tanks

Tank 2 4,000-gallon Gasoline

Ta~nk

3

4,000-gallon.

(~aso1ine

Tai* 44,000-gallon Gasoline

You

must

contactthe Illinois Environmental Protection Agencytoreceive a packet of Agency biUing

forms for

submitting

your

request-for

payment.

Au owner or operator is eligible -to access the Underground StorageT~kFundif the eligibility

requirements

are

satisfied:

1.

Neither the owner northe

operator is the United StatesGovernment

2.

The tank does not

contain

fuel that is exempt from the Motor Fuel

Tax Law,

3.

The costs were

incurred

as aresult of a confirmed release of any ofthe following substances:

4’Fuer’,

as definedin Section

1.19 ofthe Motor FuelTax Law

-

_____

Aviation fuel

1035 Stevenson Drives Springfield,

Illinois

62703-4259

Printed on ReQycIed Paper

EXHIBIT

---

Heating oil

Kerosene

U~ed

oil, which has

been

reflned from crude oil used in a

motor vehicle, as

defined

in Section 1.3 ofthe Motor FuelTax Law.

4.

The owner or operator registered.the tank and paid a~ll

fees in accordance withthe statutory

and regulatory reqtzireinents

of

tl~e

Gasoline Storage Act.

5.

The

owner or operator notified the Illinois Emergency Management Agency ofa confinned.

release, -the costs were incurred after the notification and the costs were a result of a release

of a substancelisted inthis Section;

Costs ofcorrectiveaction or indemnification incurred

before providing that notification shallnot

be

eligible for payment.

6.

The costs have not already been. paid to the owner or operator under a private insurance

policy, other written agreement, or court order.

7.

The costs were associated with “corrective action”.

-

This constitutes the final decision as it relates to your eligibilityarid deductibility.

We reserve the

right tochange the deductible detarminationshould additional infonnatiou that would change the

determination become available.

An underground storage tank owner or operator may appeal th~

d~ecision.

to the Illinois I’ollution Control Board (Board), pursuant to Section

57.9

(c) (2),

An owner or

operator‘who seek~

to appeal the decision shallfile a petition for-a hearing before the Board within 35

days ofthe date ofmailing of the final decision,

(35

Illinois Administrative -Code 105.102(a) (2)).

Forinformation regarding the filing of an appeal, please contact:

Dorothy Gunn, CIe~k

•

-

illinois Pollution Control Board

-

State of Illinois Center

-

100 West Randolph, Suite 11-500

Chicago, Illinois

60-601

(312)814-3620-

The following tanks-ar~

also listed for this site~

-

Tank

1 4,000-gallon Diesel

-

Tank

5

1 ,000~gai1on

Gasoline

-

-

Tank

6

1,000-gallonKeroselie

-

Your application indicates thatthere has notbeena release from-these tanks under this incident

number.

You may be eligible to seekpaymentof correctiveaction costs associated with

these tanks if

-it is determinedthat therehas beena releasefrom one or more of these tanks.

Once it is determined

that therehas been a release from one-or

more of these tanks

you may submit a separate application

foran eligibjlity deteimination’to

seek corrective action costs associated witji this/these tanks.

---

Ifyou have

any questions regarding the eligibility or deductibility determinations, please contact our

Office

at (217) 785-1020 or (217)785-5878

and ask

for

Deanna Lock.

Sincerely,

-

Melvin

H.

Smith

Division Director

Division ofPetroleum and

Chemical

Safety

MHS/dl

cc:

IEPA

Facility File

---

Gan~rI

Offica

217.785-9969

FAX

217.782-1082

DIv~aIons

ARSON

INVESTIGATION

211-182-9116

-

BOILER and

PRESSURE

VESSELSAFEfl’

217-782-26g6

FiRE PREVENTION

211.78S-4744

MANAGEMENT SERVICES

2i7-782-9889

INFIRS

2~?-T6S-5826

HUMAN

RESOURCES

217-165-1026

PERSONNEL STANDARIJS

and

EDUCATION

217-762-4542

PETROLEUM and

CHEMICAL SAFETY

217-785-5678

PUBLIC

INFORMATION

217-785-1021

WEB

SITE

January 10,2003

Office

of

the Illinois

State

Fire

Marsha!

CERTIFIED MAIL-RECEIPT REQUESTED p7001

25100002

1313 7344

Arnold Owens,

Inc., dfbla Freedom Oil

814 W. Chestnut

P.O.

BOX

3697

Bloomington, IL

61701-3697

Atm:

Mike Owens

Dear Applicant:

InB~e:

Facility No. 4-016564

IEMA IncidentNo. 02-1122

Freedom Oil Co.

401

S.

Main Street

Paris, Edgar

Co.,

IL

~w,tat~.flu~/o~fni

The Reimbursement Eligibility and Deductible Application received-on -December

5, 2002

for the-

above referenced occurrence has been reviewed.

The following determinations havebeen made based

upon this review.

It has been determinedthat you are eligible to sdek payment of costs in excess of $10,000.

The costs

must be in response to the occurrence referenced aboveand associatedwiththe following tanks:

Eligible Tanks

Tank 2 4,000 gallon Gasoline

Tank 3

4,000 gallon Gasoline

Tank

44,000

gallon

Gasoline

You roust contact the

Illinois Environmental Protection Agency toreceive a packet of Agency billing

forms for submittingyour request for payment.

-

An owneror operator is eligible to access the.Underground Storage Tank Fund ifthe eligibility

requirements are satisfied:

-

-

1..

Neitherthe ownernor the

operator is the United States Governnient,

2.

The tank does notcontain thel which is exempt from the Motor FuelTax Law,

3.

The costs were incurred as a result of a confirmed release of any of the followingsubstances:

“Fuel”,

as definedin Section 1.19 of the Motor FuelTax Law

Aviation ftiel

Heating oil

1035 Stevenson

Drives Springfield,

Illinois

62703-4259

Prin~d

on

Recycled

Paper

i

-d

SCLS

t~8

SOC

I

su~mo~

~Lb-~Dt

ED

~i

---

4

Kerosene

-

-

Used oil, which has beenrefined from crude oil used in a motorvehicle,

as defined inSection 1.3 of the

Motor FuelTax Law.

4.

The’owner or operator registered the tank and paid all fees in accordance with the statutory and regulatory

requirements of the

Gasoline Storage Act.

--

-

-

-

-

.5.

The owner or operator notified th~

Illinois

Emergency Management Agency ofa confirmed release, the costs

were in~iixred

after the notification and the costs were a result ofa release of a substancelistedin this Section.

Costs of correctiveaction or indemnification incurred before providing that notification shallnot be eligible

for

payment.

6.

The costs

have notalready beenpaid. to the owner or operator under a private insurance policy, other written

agreement, or court order.

7.

The costs were associated with “corrective action”.

This constitutesthe final decision as it relates

to your eligibilityand dcductibility.

We

reserve

the right

to

change the

deductible determination should additional information that would change- the determination become available.

An

underground storagetank owner or operator may appeal the decision to the Illinois Pollution Control Board (Board),

pursuant to Section 579 (c)

(2).

An.

owneror operator who

seeks to appeal

the decision shallfile a petition for a hearing

before the Board within 35 days of the

date

of mailing ofthe

final decision, (35 Bhinois Administrative Code

105.102(a)

(2)).

Forinformation regarding the filingof an appeal, please contact:

Dorothy Gutin,

Clerk

-

.

-

Illinois

PollutionControl Board

State of Illinois Center

100

West Randolph, Suite 11-500

.

chicago, illinois 60601

-

(312)814-3620

-

-

The following tanks are also

listed for this site:

Tank

1

4,000 gallon Diesel

-

-

Tank 5

1,000 gallon Gasoline

Tank 6

1,000 gallon Leroser~e

-

-

-

Tank7

1,000 gallon Gasoline

Tank 8

1,000 gallon Gasoline

Tank

9

1,000 gallon Gasoline

-

-

Tank

10

1,000 gailonGasoline

-

Tank

11

500 gallon Heating Oil

Your

application indicates that there has notbeen a releasefrom these tanks under this incident number.

You

maybe

eligible

to seek

payment of corrective action costs associated withthese tanks ifit is determined that there

has

beena

release from one or more ofthese tanks.

Once it is determined thattherehas been arelease from

one or more

ofthese

tanks you may subxni.ta separate application for an eligibility~leternination

toseek correctiveaction costs associated with

thislthesc tanks.

—,

.4

~

i

-~

o.

~

~

~1-

ii

~

,n

r’,

,‘

~

---

If you have any questionsregarding the eligibility or deductibility determinations,please contact our Office at (217)

785-

1020 or (217)

785-5878

and ask for Deanue Lock.

Sincerely,

L~L~tL

Melvin H. Smith

DivisionDirector

Division

of

Petroleum and Chemical Safety

MHS/dl

cc:

LEPA

Facility File

E’d

~

I

suem~ Ta~u3nJ

el-b-mr

g:-n 4~T uer

---

Bt--~infield Hills

Kalamazoo

Lansing

Pe

~a

howard

~

Howard

law

for

business

directdial: 309.999.6309

Diana

l\’L

Jagiella

email: djagiella~howardandhoward.coin

March

5,

2003

-

Via Facsimile —(217) 524-7740

Via Facsimile —(217) 782-9807

James L. Morgan, Assistant

John Kim, Esq.

Attorney General

Illinois

Environmental Protection Agency

Office

ofthe

Attorney

General

Division ofLegal

Counsel

500

S. Second Street

1021 N. Grand Avenue

East

Springfield, IL 62706

Springfield, IL 62702

Via Facsimile

—

(217) 782-9807

John Waligore, Esq.

Illinois Environmental Protection Agency

Division ofLegal Counsel

-

~

1021 N. GrandAvenue

East

Re:

Freedom Oil Company

401 S. Main

Street, Paris, Illinois

—

Gentlemen:

Enclosed is

a copy of the

OSFM’s

February 26,

2003

letter approving

Tanks

1

and

6

for

Fund Eligibility.

As you know, EPA considered receipt of

this eligibility

approval letter necessary

to

include

Tanks

1

and

6

in

the

proportion

of approved

cleanup

costs.

They

previously

were

considered by EPA

to be

Fund

Ineligible

due to

the

lack of an OSFM

eligibility determination.

The proportion ofreimbursable costs

was

correspondingly reduced.

We

currently

have

a large

reimbursement

request pending.

Would you please ensure the

amount

approved for reimbursement includes

Tanks

1

and 6

in the Fund eligible proportion.

I have

asked MacTec to make sure Mike Heaton, who is handling the technical review,

has

a copy of the

Eligibility

Determination.

We

also

were

previously

denied

reimbursement

for the proportion of

costs

allocated to these

tanks

in the prior reimbursement request.

This

denial is

the subject ofthe

pending Board appeal.

To eliminate

further unnecessary legal

costs,

would you also please have the

amount

denied for these

tanks

in the earlier request approved for payment.

One

Technology

Plaza,

Suite

600.

211

Fulton

Street,

Peoria.

IL 61602.1350

309.672.1483

Fax:

309.672.1568

www.h21aw.com

---

John

Waligore, Esq.

John

Kim,Esq

March

5,

2003

Page2

Also enclosed

is

a

copy of Doug

Clay’s

denial

for an

early action

extension.

Based

on

MacTec’s discussion with Mr.

Clay, we understand any future work deemed

necessary at the site

will be handled

through

the LUST division.

Once you have reviewed the enclosed correspondence,

a conference call between us would

seem in order.

Sincerely,

HOWARD &

HOWARD ATTORNEYS,

P.C.

~

Diana M. Jagj’ella

U

Enclosure

cc:

Michael Owens

-

Michael J.

Hoffman

—

Terry Dixon

-

mlt~\Meedom

oil\co?rnorgan-iepa(kim)2-5-03.doc

Howard!~

Howard

---

F

~

£

~4~L4

?~aie

f~e

&~44

Office

of

the

Illinois

State

Fire

Marshal

CERTIFIED

MAIL

-

RECEIPT REQUESTED #7000

1670 0009 0626

4390

-

REVISED

February

26,

2003

Freedom Oil Company

814

W. Chestnut

P.O.

Box 3697

Bloomington, IL

61701-3697

Attn:

Mike Owens

.

.

-

In Re:

Facility No.

4-016564

-

IEMAlrtcidentNo.

02-1122

Freedom Oil Co.

401

S.

Main Street

-

Paris,

Edgar

Co., IL

Dear Applicant:

-

-.

The Reimbursement Eligibility and Deductible Application received on February

5,.

2003 for the above

Teferenced ~ccurtence has beenreviewed.

The followingdeterminations have been made. based upon this

review.

-

-

-

.

-

.

- -

It has been determined that

you

are

eligible to seekpayment of costs in excess of$

10,000.

The

costs must be in

response to the occurrence referenced above and associated with

the following

tanks:

-

Eligible Tanks

-

.

-

Tank

1

4,000 gallon Diesel

.

.

-

Tank

24,000

gallon

Gasoline

-

-

-

Tank

34,000

gallon

Gasoline

-

-

-

Tank

44,000

gallon Gasoline

-

Tank 6

1,000

gallon Kerosene

You

must contact the Illinois Environmental Protection Agency

to

receive a packet of

Agency billing

forms

for

submitting-your

request forpayment.

An owner

or

operator is eligible

to access the Underground

Storage

Tank Fund if.

the eligibility requirements are

satisfied:

-

-

.

-

-

-

-

-

-

-

-

1..

-

Neither the

owner nor the operator is the United States Government,

2

The tank does not contain fuel winch

is

exempt from the Motor

Fuel Tax Law,

3.

-

The costs

were incurred as a result

of

a confirmed

release ofany

ofthe

ibilowing-substances:

“Fuel”, as defmedin Section 1.19 of the Motor Fuel Tax Law

1035 Stevenson Drive

•

Springfield,

Illinois 62703-4259’

(217) 785-0969

Prfrite4

on

Recycled

Paper

---

Aviation fuel

-

Heating oil

-

Kerosene

-

Used oil,

which has been refined from crude

oil used

ina motorvehicle, as defmed in Section

1.3 ofthe

Motor FuelTax Law.

-

4.

The owner or operator registered the tank and paid all fees in accordancewith the statutory

and

regulatory requirements of the

Gasoline Storage Act.

5.

The owner or operator notified the Illinois Emergency Management Agency of a confirmed release, the

costs were incurred after the notification and the costs were a result of a release of a substancelisted in

this Section.

Costs of corrective action or indemnification incurred before providing that notification

shallnot be eligible

for payment.

6.

The costs have not already been paid to the owner or operator under a private insurance policy, other

-

written agreement, or court order.

7.

The costs

were associated with “corrective action”.

-

-

-

--

This constitutes the final decisionas it relates to your eligibilityand deductibility.

We reserve the right to

change the

deductible determination should additional information. that-would change the determination become

available.

An underground storage tank owner or operator

may

appeal the decision to the Illinois Pollution

ControlBoard (Board), pursuant to Section

57.9

(c)

(2).

An owner or operator who seeksto appeal the

decision

shall file a petition for a hearing before the Board within

35

days ofthe date of mailing ofthe

fmal decision,

(35

Illinois Administrative

Code

105.102(a) (2)).

For information regarding the

filing

of an appeal, please contact::

Dorothy Gunn, Clerk

-

Illinois PollutionControl Board

State of Illinois Center

100 West Randolph, Suite 11-500

-

-

Chicago, Illinois 60601

-

(312)814-3620

The

following tanks

are also listed for this site:

-

-

TankS

1,000

gallon

Gasoline

Tank

7

1,000

gallon Gasoline

-

Tank 8

1,000

gallon

Gasoline

Tank

9

1,000

gallon Gasoline

Tank

10

1,000 gallon

Gasoline

Tank

11

500

gallon Used Oil

Your application indicates

that there has not been

a release from these tanks under

this

incident number.

You

may

be eligible

to seek payment of corrective action costs associated

with

these tanks if it is

determined

that

there has been a release from one Or more ofthese tanks.

Once

it

is

determined that there has been a release

from

one ormore -ofthese

tanks

you

may

submit a separate application for an eligibility determination to seek

corrective

action costs associated with

this/these tanks.

---

If you have any questions regarding the eligibility or deductibility determinations, please contact our Office at

(217) 785-1020 or (217) 785-5878

and

ask for Deanne Lock.

Sincerely,

MelvinH. Smith

Division Director

-

Division of Petroleum and Chemical Safety

MES/dl

cc:

-

IEPA

Facility File

---

ILLINC

-

~NVIRONMENTAL

PROTECT’~

AGENCY

1021

NORTh GRAND

AvENUE

E.i.sr,

P.O.

Box 19276,

SFSINCFIELO,

ILLINQt5

62794-9276

~

R. THo.½w~cN

C’4r~,

100

WEST

P

QO~PH,

SUtTE

11-300.

Cf-ticAco.

IL

60601

GEORGE

H.

Rv~’.N,GOVERNOR

Rs~EECPRJANO,

D?gEc~os

‘DEC18

ZUOZ

-

..

-

-

--

___

Fre~dom

Oil Company

.

-

Attu:

Gene Adams

Post Office Eox-3697,

814 W. Chestni.it

Bloomington, Illindis

61702-

Re:

LPC #0450305043

--

Edgar County

Paris/Freedom

Oil

Co.

401

South

Main

Street

LUST Incident No. 20020433

-

LUST FISCAL FILE

-

DearMr.

Adams:

-

-

—

The illinois Environmental ProtectionAgency has completed the review 6fyour application for

payment from the Underground Storage TankFund for the above-referenced

LUST

incident

pursuant

to

Section

57.8(a)

of the

flhiri.ois

Environmental Protection

Act (Act),

and

35

fli.

Adm.

Code

732,

Subpart F.

This information is dated September

1~.

2002 and

was

received

bythe

Agency

on

September

18, 2002.

The

application

for

paynient covers

theperiod from

April

3,

2002 to

August

16, 20Q2.

The amount requested is $185,644.12.

The

deductible amount

to be

assessed

on

this claim is

$20,000.00,

which isbeing deducted

from

this payment.

In addition

to the

deductible, there are costs from this claim that are

not

being

paid.

Listed in Attachment A arc the

costs

that are

not

being paid and

the

reasons

these costs

are

not being

paid.~

-

-

On December

12, 2002, the

Agency received yourcomplete application forpayment

for

this

claim.

As

a result

ofthe Agency’s review of

this

application for

payment, a

voucher for

-

$83,521.78 will be prepared for submission to the Comptroller’s Office for payment as funds

become available based upon the date the Agency received your completerequest for payment of

this application for payment.

Subsequent applications for payment thathave beeiilare submitted

will be processed

based

upon the date

complete

subsequent application for payment requests are

received by the Agency.

This constitutes the Agency’s final action with regard to the above

application(s) for payment.

An underground

storage tank

owner

or

operator may appeal this final decision to the Illinois

PoUution

Control Board (Board) pursuant to Section 57.8(i) and Section 40 of

the

Act by filing a

Roix,cw

—4302

NorthM~nStreet,

Rcckfoi’d,

1161103 —(815) 987.7760

‘

Ots

PLA4P~S

.

9511

W.

HW~UOfl

St, Dd

Ptair~es..

U.

60016 —(847) 294-4000

—395

South

Sate.

Elgin. II.

60123

—(8471

608-3131

*

—

5415

N.

Univer~ky

Sr.,

Peoria,

II.

61614— (309)

693-5463

B*ji**u.rc, t*a4o-

P~o~

—

7620 N.

Uni’~ers~y

Sr., Peoria,

IL

61614— (309)

693-5462

‘

C~c~

—

2125

SOsJth Frst

SLree(.

C)~atnpaign.

U.

61820—

(2171278.5800

—

4500

5. Sixth

Street Rd..

SpringfIeld. 1162706—

(217) 786-6392

•

C0w,d’~1u.t

2009

Mall Street, CoHinsvflle.

U.

62234

—(6181346-5120

—

2309

W.

Main St.

Suite

116,

MariOn.

It.

62959—

(618)

993-7200

217/782-6762

EXHIBIT

Patr4iW ON R~’v~O

PAPa

---

Page2

.

-

petition

for

a hearing withi-i

35

days after the date ofissuance

of

the-flnai decision..

However,

the

35~-day

period maybe extended for a period oftime not

to exceed 90

days by written notice

from the owner or operator and the IJinois

EPA Within the initial 35-day appeal period.- If the

applicant wishes to

receive a 90-day extension, a writtenrequest that includes a statement of the

date

the final decision was

received, along with a copyofthis

decision, mnst

be sent to the

illinois

EPA as soon is

possible.

.

-

For information regarding the filing ofan appeal,

please contact:

•

Dorothy Guiin, Clerk

Illinois Pollution Control Board

.

-

State ofIllinois Center

.

-

100 West Randolph, Suite 11-500

-

Chicago, illinois 60601

312/814-3620

For information regarding the filing ofan extension, please contact:

-

Illinois Environmental ProtectionAgency

Division ofLegal Counsel

.

-

-

1021

North

Grand Avenue East

-

• Springfield1 Illinois 62794-9276

.

...

.

- -

•

217/782-5544

-

-

•

-

.

.

.

.

If you have

any questions

or require

further assistance,

please contact Michael Heaton of

-

Michael Lowder’s staff at 217/782-6762.

Sine

,

Dough

E: Oakley, Manager

(

-

-

LUST Claims Umt

.

-

Pla~mirig

&

Repotting

Section

-

•

BureauofLand

.

.

-

--

.

-

DEO:LH:MH:ct\02

135 .doc

•

.

.

..

-

-

-

-

Atzachmeni

cc:

HardingESE

-

.

.

.

---

Attachment A

Technical Deductions

Re:

LPC #

0450305043

—

Edgar County

Paris / Freedom

Oil

Company

401 South Main Street

•

-

LUST

Incident No. 20020433, 20021122, and 20021420

LUSTFile

-

NOTE:

Citations in this attachment are

from 35

Illinois Administrative Code

(35

LAC) and the

Illinois Environmental Protection

Act

(Act).

Item#

Description

ofDeductions

-

-

$27.76

for

USA

Bluebook

(dye

for dye

tracing

of sewer).

This

cost

has

been

determined to not be related to Early Action activities; therefore, it is not reasonable

(35

I.AC.732.606(ii)).

-

2.

.

$140.00 Parish Beacon Publishing (no~ceof smoke testing in newspaper).

This cost

has been determined

to

not

be

related

to -Early Action

activities;

therefore,

it

is

not

reasonable (35

IAC

732.606(u)).

•

-

-

-

3.

581,954.58

for

deductions

for .costs

for

corrective -action

activities

for

underground

~torage

tanks

for

which the owner

or

operator was

deemed ineligible to

access the find

(Section 57.S(m)(1) ofthe Act and

35

IAC 732.608).

Specifically,

there

were

ten tanks

at

the subject facility, each ofwhich was

determined

by the

Office of State

Fire Marshall

to have had a

si~tificant

release.

Tank

Nos. 2, 3,

~nd

4

were deemed

eligible to

access

the

LUST

Fund

for

reimbursement purposes.

•

Tanks

I.

5,

6,

7,

8,

9,

and

10

have

not

been determined

io

be eligible

to

access

the

LUST

Fund

for

reimbursement

purposes.

Tank #

Description

1

4,000 gallon

diesel tank

.2

4,000

gallon gasoline tank

-

3

4,000 gallon gasoline

tank

-

4

4,000

gallon gasoline tank

5

1,000

gallon

gasoline tank

-

1,000 gallon

kerosene tank

-

7

-

500

gailon heating

oil

tank

8

1,000

gallon gasoline

and/or diesel tank

9

L000

gallon gasoline

and/or diesel tank

10

-

1,000 gallon gasoline

and/or

diesel

tank

---

Attachment A

Page2

The

total

gallonage of tanks

eligible

to

access the LUST Fund

is

12,000

gallons.

the

total

gallonage

of

tanks

not

eligible

to

access

the

LUST

Fund

is-

9,500

.gailons.

Therefore,

55.814

of

costs are apportioned to

the tanks eligible

to

access the LUST

Fund,

and

44.186

of costs

are

apportioned

to

the

t~nlcs

not

eligible

to

access

the

LUST-Fund.

Wish regard to

$81,954.58

deduction, $40,014.29 was deducted from Personnel, $27.40

was

deducted

from Equipment,

$857.23

was de~ducted

from Materiai~and Expendable

-

(in

stock

-

items),

$2,866.22

was

deducted

from

Materials

&

Expendabies

(field

•

purchases, a~erthe

$140

and

$27.76 deductions listed

on

lines

a

and b

above),

and

•

$38,18~.44

was deducted from Subcontractors.

-

MTLnth\02043353.doc

-

.

-

TOTa. P.~5

---

ftLlNOIs~-ENViR’Or’1MENTALPROTE~T~ON

AGENCY

1021

NCRT~

~

A~IE?~uE

E..~r.P.O.

&cx

19276.

S;~tNCFt~LQ,

l~:u~os

62794~9276

~

R.

T?~OM~Or-.

C~NmR.

100 W~r~

~

5~r~

I

1.300.

C~-~i~o,

IL

60601

RoD

R.

8LACOJEV~cH,

CovE~oR

R~NE~

CIPR:ANC.

DrREc~oR

CERTIFIED M.AIL #

-

-

EXHIBIT

Freedom Oil Co.

Attention:

Mike Owens

PostOffice Box

3697

-

Bloornington,IL

61702

-

Re:

LPC #0450305043

--

Edgar

County

-

Paris/Freedom Oil Co.

401 South Main S’.~eet

-

LUST IncIdent No.

20020433

LUST FISCAL

FILE

-

Dear Mr.

Owens:

-

The

Illinois

Envircrl.mental Protection Agencyhas completed the review ofyour application for

paymait from the Undefground

Storage

Tank Fund

for the above-referenced

LUST incident

pursuant to Section

57.8(a)

ofthe

Illinois

Environmental

Protection

Act (Act),

and

35

III. Adm.

Code

732.

Subpart F.

This information is dated

December 24,2002 and was

received bythe

A~ericy

on December 30. 2002.

The application for payment covers the period from June 30.

2002

to November 22.. 2002.

The amount re~uesred

is $709348.50.

-

The deductible amount for this e1airz~.

is S20.000.00, which was previously deducted from

the

billing

submittal received by

the Agency on December 12, 2002 for $181644.12.

There are

costS

ti~amthis claim that

are

not being paid.

Listed

in Attachment A are

the costs that are not

being

paid and the reasoits these costs are not being paid.

On

February

7.

2003. the Agency received your complete application for payment for this claim.

As

a result ofthe

Agency’s review of

this application

peent.

a voucher for $540,696.60

will b~

prepared

for submission to the Comptroller’s

Office for payment as funds become

available besed upon

the

date

the Agency

received

your

complete request for payment of

this

application for payment.

Subsequent applications

for payment that

have

been/are submitted

Will

be processed based

upon the daze complete

subsequent application

for payrñent requests

are

received by the Agency.

This constitutes

the A~encys

final

action

with regard to

the

above

application(s) for payment.

An~i3nderground

storage rank owner or operator may anpeal this final decision to

the Illinois

Pollution Control Board (Board) pursuant to Section 57.8(1) and

Section 40 of the Act by filing a

.Qtjofl

tbr a

hearing within

35

days after

the date ofissuance

of the finaFdecision.

However.

~,..j•

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217/7g2-~762

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I•~.-,.-

---

c_J-

C

Page 2

the 35-day period may be extended

for

a period

of time

not to exceed

90 days by written notice

from the owner or operator and the illinois EPA ~thin

the initial 35-day appeal period.

Ifthe

applicant wishes to receive a

90-day

extension: a written request that includ~a statement of the

date the final decision was received, along with

a copy ofthis decision, must be sent to the

Illinois EPA as soon as possible.

For information regarding the filing ofan appeal, please contact

Dorothy

Gunn,

Clerk

Illinois Pollution Control Board

-

State ofIllinois

Center

100 West R.andolph, Suite

11-500

-

-

Chicago, Illinois

60601

312/814-3620

For information regarding the filing of an extension, please contact

fllinois Environmental Protection Agency

Division of Legal Counsel

1021

North Grand Avenue East

Springfield, Illinois 62794-9276-

—

217/782-5544

Ifyou have any questions

or requii~efurther

assistance,

ple2se

contact Lieuz-a

Hackman

of

my

stafforMicbael Heaton of

Michael

Lowder’s staff at

217/782-6762.

DEO:LH~jk\032955.doc

Attachmem•

cc:

Harding

ESE

E. Oakley.

Manager

LUST Claims Unit

Planning & Reporting SectIon

Burtau of

Land

-

---

Attachment A

Accounting Deductions

Re:

LPC #0450305043

—

Edgar County

?arisfFre&dorn Oil

Co.

-

-

401

SouthMain Street

LUST

Incident No.

20020433

LUST

Fiscal

File

Citations in this attachment are from

and the Environmental Protection Act (Act) and 35

illinois

AdmInistrative Code (35 ill. Mm.

Code).

Item #

Description of

Deductions

5362.84,

deduction for costs which are unreasonable as submitted.

(Section

57.7(c)(4)(C) of

the Act and

35

11!.

Adrn. Code 732.606(hh))

A

deduction in the amount

of

$226.76 was made from the cell phone rental for the

period ofOctober 28. 2002 to November 27, 2002 (staff was

at the

site for

5

days of

this billing period; the costs have been pro-rated).

A

deduction in the

amount

of$&73

was made for late charges on the cell phone rental

for the period

of October 28. 2002

to

November 27, 2002.

A

deduction in the amount of$103.96 was made from the cellphone rental

for

the

p~riad

ofSeptember 28, 2002 to

October 27. 2002 (staff was at the site for 4

days;

the

costs

have

been

pro—rated).

-

A

deduction in the amount of$2139 was made for the request for

handling charges On

mileage

costs.

-

-

-

$896.64. deduction for costs

tb-at

lack

supporting documentation

(35

III.

Adm.

Code

731606(gg)).

Since there is

no

suppor-tin~

documentation of costs, the Illinois EPA

cannot

determine that costs

were

not

used for activities in excess ofthose necessary

to

meet the minimum requirements

ofTitle

XVI of the Act (Section

57.5(a)

of

the

Act

and 35

111. Adm. Code

732.606(o)).

-

The

following deductions were made on the Bodine

invoice numbered 014084.

The

amounts requested on the Bodine

invoice

were

greater than the

invcices

from

the

subcontractors:

.

-

A

deduction

in the amount of£480.00

was

made because the

Al’s

Backhoe

(invoice

~925)

submitted with th~

claim

was less than amount requested by

Bodine.

-

A deduction in the amount of$51.00 was made because the

Neals

Machinery

(invoice ~0020l4)

submitted with

the claim

was

less than the

amount requested

by

Bodine.

---

*

_-c.

-

-

-

-

~--~

_1_~_

-

Page 2

A

deduction in the amount

of53 59.66

was

made because the Jones & Son in-voice

•~submirred-

with the claim was

ies.s than the amount requested by Bodine.

A

deduction

in the

amount

of

55.98

wa-s made for a

meal

for R Pleiz on

September 27, 2002.

3.

30.27, deduction for casts due to a mathematical error.

(Section

57.7(c)(4)(C) of

the

Act and 35

Ui.

Adm.

Code 732.606(ff))

This deduction was made because the amount requested on the Subcontractors form

dated August 23.2002 and October 15,2002 is incorrect.

The amounts

listed

on the

form total $302,409.85.

-

-

4.

$29.74, adjustment in the handling charges due to the deduction(s) of ineligible costs

(Section 57.8(1) ofthe Act and 35

III.

Mm.

Code

732.607).

A d~duction

of

517.83

was made

on the ineligible costs of $890.66 requested on ESE

invoice 0000369674.

-

A

deduction of £11.91 was made on the ine1i~tible

cell-phone costs in. the amount

of

$342.15.

-

S24.638.82. deduètion for handling charges

in the

billing(s) exceed the handling

charges

set

forth

In Section

57.~(f)ofthe Act.

Handling charges are eligible

for

payment only ifthey are equal to

or less than the amount

determined

by

the following

table (Section 57.8(1’) ofthe

Act

and 35

IlL Adrn. Code 732.607):

Subcontract or

Eligible Handling

Charges

Field Purchase Cost

as a Fercenraee of Cost

-

S0-$S.000

12

-

S5.0Ol-$15000

$600

i-

10

of amount over 55.000

$15M01-S50.000

$1600 +8

ofamount over

$15,000

$50.001-$1 00.000

54400

+

5

of

amount over $50,000

SI 00.001~S1.000.000

-56900

~-

2

of amount

over $100,000

A

deduction in the amount ofSl3.223.0I was made on

the larding

ESE invoice

rntmbered

0000383876.

A

deduction in

the

amount

ofSll.415.81

was made on

the

Harding ESE

invoice

numbered 369674.

-

~EQLH:jk\03 2955

.doc

---

44

-~-

1-

-

Attachment A

Technical Deductions

Re:

LPC

#

0450305043

-~

Ed~arCounty

Paris

I

Freedom

Oil Company

401 South Main Street

LUST Incident No.

20020433, 20021122,

and 20021420

LUST File

-

NOTE:

Citations

in this attachment

are

from 35

illinois Administrative

Code (35

LAC)

and the

illinois

En’~rironmental

Protection Act (Act).

-

Item #

Description ofDeductions

-

$143,123.59

for

deductions

for

costs

for

corrective

action activities

for

under~o’und

storage tanks for which the owner

or operator

was

deemed

ineligible

to access the

fund

(Section 57.8(nXl) of the

Act

and

35

JAC 732.608).

Specifically. there

were

ten

tanks

at the subject facility, each of

which was

determined

by the Office ofState Fire

Marshal

to

have had a significant release.

Tank

ISles.

1,

2..

3,

4,

and

6

were deemed

eligible

to

access

the LUST Fund for reimbursement purposes.

-

Tanks

5,

7,

8,9.

and

10

have not been determined to

be

eligible to

access

the LUST

Fund for reimbursement purposes.

Tank ~

Description

-

I

4,000-gallon diesel tank

-

-

2

4,000-gauon gasoline tank

3

4,000-gallon gasoline tank

-

4

4.000-gallon gasoline tank

-

5

1,000-gallon

gasoline tank

-

-

6

1,000-gall-on kerosene tank

7

500-gallon beating oil

tank

8

1.000-gallon gasoline and/or diesel tank

9

1,000-gallon gasoline

and/or

diesel

tank

10

1.000-gallon gasoline and/cr diesel

tank

The

total

~a11onage

of tanks

cligi’&e

to

access

the LUST

Fund

is 17.000 gallons.

the

total

-

gallonage

of

tanks

not

eligibic

to

access

-

the

LUST

Fund

is

3,500

gallons.

Therefore.

79.07

of costs

are apportioned

to

the

tanks eligible to

access the

LUST

Fund, and

20.93

of

costs

are apportioned to

the

tanks

n~t

eligible to

access

the

LUST

.-

-

-

Fund.

-

-

M~L:mh\020433a4.doc

-

---

-

ILLINOIS

ENVIRONMENTAL

PROTEcTION

AGENCY

1021

NoRTH

GRANO

AVENUE

EfrST,

P.O. 8ox 19276,

SPUr4GFIEW,

ILLINOIS

62794-9276

j~~s

R.

THOMPSON

CEr.trtR.

100

W~5TR~o~~’i-~,

SurrE

11-300,

CHICAGO, IL

60601

Roo

R.

BLAGOJEVICH,

GOVERNOR

RENEE

CIFRIANO,

217/782-6762

t1AY28

2003

Freedom

Oil Co.

Attention:

Gene

Adams

Post Office Box 3697

Paris,

IL

61944

Rei

LPC #0450305043

—

Edgar County

ParisfFreedom

Oil

-

401 SouthMain

LUST IncidentNo. 20020433

LUST FISCAL

FILE

Dear Mr. Adams:

-

The Illinois Environrhental Protection Agency has completed the

review

ofyour

application

for

payment from

the

Underground Storage

Tank

Fund for the above-referenced LUSTincident

pursuant

to Section

57.8(a)

ofthe Illinois

Environmental

Protection Act (Act),

and

35

ilL Adm.

Code 732, Subpart F.

This information

is dated

February

11,2003

and was received

by

the

Agency on February 20,2003.

The application forpayment covers the period

from March

1,

2002

to

January

24, 2003.

The amount

requested

is $1 16,84L37.

The deductible

amount

for this

claim

is S20.000.00, which

was

previously

deducted from the

Invoice Voucher dated

January

17, 2003.

Listed in

Attachment A are

the costs which

are

not

being paid

and

the

reasons these costs

are

not being paid.

-

-

On

March

3, 2003, the Agency received your complete application for payment forthis claim.

As a result of

the

Agency’s review of

this

application for

payment,

avoucher for$94,288.66 will

be prepared for submission to the Comptroller’s

Office

for payment as funds become available

based

upon the date the Agency received -your complete

request

for

payment

ofthis application

forpayment.

Subsequent

applications

for payment

that

have

been/are

submitted will

be

processed based upon

the

date complete subsequent application for paymentrequests

are

received bythe Agency.

This constitutes

the

Agency’s

final

action with regard to the above

application(s) forpayment.

-

-

An underground

storage tank

owneror operator may appeal

this final

decision to the

Illinois

Pollution Control Board (Board) pursuant to Section 57.8(i)

and

Section 40 ofthe Act by

filing a

petition for a hearing within 35 days

after the

date of

issuance

ofthe final -decision.

However,

the 35-day period may be extended for a period of

time

not to exceed 90 days by

written

notice

gocKso*o

—

4302 No~-i.h

Main StrcIt,

Rcck(ord.

U.

61103—

(~t

5; 987.7760

•

Ou PtAw~S

—9511

W.

Harrison

St., Des

Plaines, II. 60016—

(847)29-4—4000

-:

—

595 South

State. Elgin,

It. 60123 —(6471

608~31

31

•

Ptoea.~

—5413

N.

Unive&tv

St..

Peoria.

II.

61614

—

(309)

693-5-463

~w

Oc

L~r-~o

.

I’~O~i~

—~62O

N.

Unjversi~y

St..

Peor..~,II.

61614—1309) 693-3462

•

Cru~r~ucs

—-2125

South

Fits~

Street.

Champaign. IL 6)820

—(217)

278-5800

—

4500

S.

Sixth

Street

Rd.. Springfield.

It.

62706

—

(217)

786.6892

•

CoutNS~n*j.~

—

2009 MaU

Street.

Coliiniville.

IL

62234 —(6181 346-3120

—

2309

W,

Main Sc.. Suite

116, Marion.

11.62959 —(618)

993-7200

P’tIN~W

er-I R(C’Y~jj~

PAr~ce

---

Page 2

-

--

from

the owner or operator

and

the

Illinois

EPA ~rithinthe initial

35-day

appeal period, lIthe

applicant wishes

to receive a 9()-day

extension,

a written request thatincludes astatement

of

the.

date the final decision was received, along with a

copy

ofthis decision,

must

be

sent to the

Illinois EPA as soon as possible.

For

information regarding

the

filing

ofan

appeal,

please contact:

-.

Dorothy Gunn, Clerk

Illinois Pollution

Control

Board

State ofIllinois Center

-.

100 West Randolph,

Suite

11-500

-

Chicago, Illinois

60601

-

312/814-3620

-

-

.

For

information

regarding the

filing

ofan

extension, please contact:

Illinois

Environmental

Protection Agency

-

Divisionof

Legal Counsel

-

-

1021 North

Grand Avenue East

-

-

-

-

Springfield,

Illinois

62794-9276

.

217/7g2-5544

_____-

If

you have any

questions

or require further

assistance,

please contact Lieura Hickman of

-

my staffor Michael Heaton of Michael Lowder’s

staff

Since ely.

D~g~s

E. O~ik1ey.

Manager

LUST

Claims Unit

-

Planning & Reporting Section

Bureau of

Land

-

.

-

DEO:LH:jk\032238.doc

~Attachment

-

cc:

Harding ESE

---

Attachment

A

Tecbnicai Deductions

Re:

U’C* 0450305043

-

Edgar

County

-.

Pans

‘Freedom

Oil

Coxr~pany

-

401

South Main

Street

-

LUS~

Incjd~t~02002043320021122

and 20021420

LUSt File

citations

in.this attacbment~e

from

the

Exivironrnental Prote

on Act (Act)

and

35

illinois

-

.

Aduunistrztive

Code

(35

Iii. Adm.

Code~.

-

-

iteth #

seri~onof Deductions

-

-

-

$~.2sfor VHS copies.

This cost has

been

deteniii~,ed

to

not be

related

to

Early

Action activities, therefore is not reasonable (35 IAC 732.606(jj)).

$22,189.00,

for

deductions

for

costs

for

coirective

action

aitivities

for

underground

Storage tanks

for

which

the

owner or operator

was .deemed ineligible

-

to

access

the

fujid (Section S7.8(n)(l) ofthe Act and

35

L4.C

-732.608).

Speci~ical1y,there

were

ten

tanks

at

the

-

subject

facility,

each

of which

was

determined .by

the Office of State Fire Marshal

to

have had a signifi~ant

release.

Tank

Nos.

1, 2,

3,

4,

and

6 were deemed

eligible

to

access

the LUST

Fund

for

reimbursement

purposes, ~ai~k.s

5. 7,

8, 9, and

10 ~iavenot been determ~inedto

be

eligible to access the LUST Fund

for

rcimburscrn~it

purposes.

Since~Tank

Swás

addressed

under

1EM~Incident No. 930540

-it

is’ not

included .in

the

gallonage

total

fqr

Tanks

for

which

an

eligibility detcrt~nationhas

not

been

made

by

Illinois Office of State Fire Marshall (OSFM).

-

Tank#

Description

-

-

1

•4,OOO~a11on

diesel tank

-

-

2

4,000-gallon gasoline tank

-

-

3

4,000-gallon gasoline tank

4

4,000-gallon gasoline tank

5.

1,000-gallon gasoline tank

-

6

1,000-gallon

kerosene

tank

7

500-gallon

heating

oil tank

-

8

1,000-gallon gasoline and/or-diesel tank

9

-

1,000-gallon gasoline and/or

diesel

tank

-

10

l,000-gallon gasoline and/or diesel tank

11

500-gallon

heating

oil tank

---

Attachment A

Technical Deductions

-

Page2

-

The

total gallonage

of tanks

eligible

to

access

the

LUST

Fund

as determined

by

OSFM

is

17,000 gallons,

the

total gallonage of-tanks

not

eligible

to access the

-

-

.

-

LUST

Fund

as

determined

by

OSFM

is 4,000 gallons.

Therefore,

80.95

of.

costs

~e

apportioned to the tanks eligible to access the

LUST

Fund, and

19.05

-

.

of costs are

apportioned to the tanks not eligible to access

the

LUSTFund.

MTLmh\020433a5.doc

-