PCB Study on the SoCal System

I received a call from Ralph Komai, PCB engineer with SoCal, about a pipeline
liquids collection SoCal wants to take at our Needles facility. Ralph said
that SoCal will be undertaking a study on their pipeline to determine why the
concentration and liquids volume of PCB's has reduced into their system in
the past couple of years (97-2000). I shared with Ralph and up until this
year, we have not had liquids at the Needles facility since 1994. He stated
that they have seen reduced concentrations and are curious as to why this
trend is occurring (sounds like good news to me). He said that their data
shows the following:

1998 liquids concentrations only 1% regulated at the federal level

1999 liquids concentrations only 8% regulated at the federal level

Ralph has requested that SoCal be allowed to collect a liquids sample at the
Needles M/S and I have contacted the Needles team about assisting SoCal with
the collection.

I would expect that this may have implications with respect to slight
increased billing for analytical charges that SoCal will be charging us for
and we reveiw on a quarterly basis with them.