June 15, SoCalGas Advice No (U 904 G) Public Utilities Commission of the State of California. Subject: Additional Hazardous Substance Site

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1 Lee Schavrien Director Regulatory Case Management and Tariff Administration 101 Ash Street San Diego, CA Tel: Fax: Pager: June 15, 2000 SoCalGas Advice No (U 904 G) Public Utilities Commission of the State of California Subject: Additional Hazardous Substance Site Purpose Sempra Energy, on behalf of Southern California Gas Company (SoCalGas), hereby requests Commission approval to include Jack Engle & Co./M. H. Whittier Site (the Site) in the Hazardous Substance Cost Recovery Account as referenced within SoCalGas Preliminary Statement Part V.C, in compliance with Decision No. (D.) Background D requires California utilities to file an advice letter in order to include additional sites as part of the Hazardous Substance Mechanism. For each site the advice letter shall list: 1) the name of the site, 2) the location of the site; 3) the source, nature and approximate date of the contamination; 4) utility operations (historical and current) at the site, if any; and 5) environmental agency and oversight regarding the site, if any. In addition, D requires utilities to demonstrate that: 1) clean-up costs for which recovery is being sought are not being recovered through base rates or through any other recovery procedure; and 2) all of the costs for which recovery is being sought are hazardous waste clean-up costs (including insurance costs) found appropriate for recovery in the Collaborative Report. M. H. Whittier Corporation owned and operated a waste oil re-refinery at the Site (Facility). The facility engaged in the re-refining of waste oil, which is alleged to have resulted in the contamination of soil and/or groundwater under the Site. Required Information The relevant information for the Jack Engle & Co./M. H. Whittier Site is as follows: Site Name: Jack Engle & Co./M. H. Whittier Site (the Site)

2 Advice No June 15, 2000 Location: 8440 S. Alameda Street, Los Angeles, California Source, Nature, and Approximate Date of Contamination: The Site was used as a waste oil re-refinery from approximately 1923 to the mid-1960s by M. H. Whittier Company, Paroline Refinery, and Alameda Re-refinery. Based on a recent site investigation, it is alleged that the waste oil reclamation activities resulted in releases to the soil and/or groundwater of petroleum hydrocarbons, volatile organic compounds, and polychlorinated biphenyls. Utility Operations (Historical and Current) at the Site: Past operations at the Site are limited to the alleged disposal of waste oil generated by SoCalGas from ten locations in 1955 and one Southern Counties Gas location. There is no record of any waste sent to the site. There is also no record of the time period in which waste may have been sent to the site. SoCalGas was named as a defendant in the case of Jack Engle & Co. v. M. H. Whittier Corporation (Federal Court Case No ), based on a declaration made May 12, 2000 by a former re-refinery employee, Delbert H. Bronson. Environmental Agency Actions and Oversight: It is understood that the current property owners have commissioned a site investigation, and the results of that investigation were sent to the Regional Water Quality Control Board along with a proposed Remedial Action Plan. The Board has made a formal written response to the Remedial Action Plan. SoCalGas obligation as a potentially responsible party is based on being named as a defendant in the court case. Nature of Costs: The M. H. Whittier Site cleanup costs that SoCalGas is seeking to recover through the procedure are not being recovered through base rates or through any other recovery procedure. All cleanup costs included by SoCalGas in the procedure will be hazardous waste cleanup costs found appropriate for recovery in the Hazardous Substance Cleanup Cost Recovery Collaborative Report, dated November 19, Protest Anyone may protest this advice letter to the California Public Utilities Commission. The protest must state the grounds upon which it is based, including such items as financial and service impact, and should be submitted expeditiously. The protest must be made in writing and received within 20 days of the date this advice letter was filed with the Commission. There is no restriction on who may file protest. The address for mailing or delivering a protest to the Commission is: IMC Branch Program Manager Energy Division California Public Utilities Commission 505 Van Ness Avenue, Room 4002

3 Advice No June 15, 2000 A copy should also be mailed to the attention of Energy Division-IMC Branch, Room 4005 (at the address shown above). It is also requested that a copy of the protest be sent via electronic mail and facsimile to Sempra Energy on the same date it is mailed or delivered to the Commission (at the addresses shown below). Effective Date Attn: Todd Sostek Site Assessment and Mitigation Manager (Authorized Representative for SoCalGas Company) Sempra Energy GT02F1 555 W. Fifth Street Los Angeles, CA Facsimile No. (213) tsostek@sempra.com Attn: Sid Newsom Regulatory Tariff Administration Sempra Energy - GT14D6 555 West Fifth Street Los Angeles, CA Facsimile No. (213) snewsom@sempra.com Attn: C. Richard Swanson Regulatory Tariff Manager Sempra Energy - HQ14C 101 Ash Street San Diego, CA Facsimile No. (619) rswanson@sempra.com In accordance with D , this advice letter shall be treated as a compliance filing under General Order 96-A for Commission approval within 40 days after the filing, which is July 25, 2000, if no protest letters are received. If protests are received, the Commission will either issued a resolution, or require the utility to file an application seeking inclusion of specified costs in the Hazardous Substance Mechanism. Notice In accordance with Section III.G of General Order No. 96-A, a copy of this advice letter is being sent to the parties listed on Attachment A and to the parties in Application No Attachments LEE SCHAVRIEN Director -- Regulatory Case Management and Tariff Administration Sempra Energy

4 ATTACHMENT A Advice No General Order 96-A Distribution List Burbank Public Service Department California Manufacturers Association City of Anaheim Public Utilities Department City of Azusa Light and Power Department City of Banning Municipal Utilities City of Lompoc City of Los Angeles City of Riverside, Public Utilities Department City of Vernon, Director, Water & Power Department Colton Bureau of Light & Water General Services Administration, San Francisco General Services Administration, Washington D.C. Glendale Public Service Department Imperial Irrigation District Long Beach Gas Department Los Angeles Department of Water and Power March Air Force Base Naval Facilities Engineering Command, Western Division Pacific Gas and Electric Company Pasadena Water and Power Department San Diego Gas & Electric Company Southern California Edison Company Southwest Gas Corporation The Utility Reform Network Vandenberg Air Force Base

5 Case Id: A Case Description: SoCalGas HazWaste Reasonableness Page: 1 CPUC - ALJ Division Anand Garde 505 Van Ness Avenue CPUC - Legal Division James E. Scarff 505 Van Ness Avenue - Rm 5121 CPUC - ORA Martin Homec 505 Van Ness Avenue, Room 3102 California EPA Peter M. Rooney 555 Capitol Mall, Suite 525 Sacramento, CA California EPA - Region 9 Barbara Cook 700 Heinz Ave. Berkeley, CA Pacific Gas & Electric Co. Gail L. Slocum 77 Beale Street, #3151, MC B30A San Francisco, CA Bill Ostrander P.O. Box 800, 2244 Walnut Grove Ave Dawn L. Wilson 2244 Walnut Grove Avenue Stephen Pickett 2244 Walnut Grove Ave. PO Box 800 TURN Robert Finkelstein 711 Van Ness Ave., #350 U. S. EPA Fred Leif 7500 Hawthorne Street San Francisco, CA 94105