Gavin Newsom, Governor David Shabazian, Director NOTICE OF VIOLATION January 9, 2020 Violation I.D.s 12186604 and 12186605 EMAIL AND CERTIFIED MAIL 7018 1130 0002 3175 7778 Mr. Fred Shaffer, Agent Aragon (Toluca/Colton) Properties Corp. 126 Lomita Street El Segundo, CA 90245 fshaffer@aragon.ca Dear Mr. Shaffer: FAILURE TO REPORT OIL SPILL INCIDENT, WELL “MOC” 6 (0403719034), LOS ANGELES CITY FIELD On December 18, 2019, California Geologic Energy Management Division (CalGEM) was notified by a community member about an incident involving oily fluid bubbling out of the pavement in a parking lot at 220 North Toluca Street in the City Los Angeles. The oily fluid flowed into a residential drain before entering the public street, contaminating approximately 1,400 feet of gutter, storm drain, catch basin. California Code of Regulation, title 14 (CCR) section 1722 (h) states, “[o]il spills shall be promptly reported to the California Emergency Management Agency by calling the toll-free telephone number (800) 852-7550 and by contacting the agencies specified in the operator's spill contingency plan.” CCR section 1722 (i) states, “Blowouts, fires, serious accidents, and significant gas or water leaks resulting from or associated with an oil or gas drilling or producing operation, or related facility, shall be promptly reported to the appropriate Division district office.” Aragon (Toluca/Colton) Properties Corp. is in violation of CCR sections 1722 (h) and 1722 (i) for failure to notify the California Emergency Management Agency and CalGEM of the oil spill incident. Failure to comply with the laws of California and CalGEM may result in enforcement action including, but not limited to, issuance of a civil penalty and/or order pursuant to Public Resources Code sections 3106, 3224, 3235, 3236, and 3236.5. State of California Natural Resources Agency Department of Conservation Southern District, 3780 Kilroy Airport Way, Suite 400, Long Beach, CA 90806 conservation.ca.gov T: (562) 637-4400 F: (562) 424-0166 Mr. Fred Shaffer, Agent Aragon (Toluca/Colton) Properties Corp. Violation I.D.s 12186604 and 12186605 January 9, 2020 If you have any questions, please contact Ellen Plaza Moser at (562) 637-4400 or ellen.moser@conservation.ca.gov. Sincerely, Digitally signed by Suman Ghosh Date: 2020.01.09 13:28:59 -08'00' Suman Ghosh Environmental and Facilities Unit Supervisor cc: Los Angeles County Fire Department – askhhmd@fire.lacounty.gov Office of Petroleum Administrator, City of Los Angeles – erica.blyther@lacity.org Chris McCullough, CalGEM – chris.mccullough@conservation.ca.gov Office of Enforcement, CalGEM – eric.morita@conservation.ca.gov Lease File Page 2 of 2