SHELL GAS, (SMO, INC)

ON OR ABOUT AUGUST 8, 2008, EPA REGION III EFFECTUATED THE ABOVE CAPTIONED SETTLEMENTS UNDER 113 OR THE CAA. THE CONSENT ORDERS ARE EACH A PART OF A “SUPER” CONSENT AGREEMENT AND FINAL ORDERS (“SUPER CAFO”) WHICH WAS DEVELOPED BY EPA REGION III TO FORMALIZE INDIVIDUAL SETTLEMENTS PURSUANT TO AN EXPEDITED SETTLEMENT AGREEMENT (“ESA”) STRATEGY. SPECIFICALLY, THE VIOLATIONS BEING SETTLED ARE OF MARYLAND REGULATIONS WHICH CONTAIN THE REQUIREMENTS FOR GAS STATIONS SUBJECT TO THE CLEAN AIR ACT’S STAGE I AND II VAPOR RECOVERY PROGRAMS, WHICH ARE FEDERALLY ENFORCEABLE THROUGH THE MARYLAND STATE IMPLEMENTATION PLAN. PURSUANT TO THE ESA, EACH VIOLATING FACILITY WAS SENT A STREAMLINED SUPER CAFO WHICH SETS FORTH ALLEGED VIOLATIONS AND A PROPOSED CIVIL PENALTY ASSESSMENT CRITERIA SET FORTH IN SECTION 113(e) OF THE CLEAN AIR ACT, 42 U.S.C. SUBSECTION 7413(e), AND EPA’S OCTOBER 25, 1991 CLEAN AIR ACT STATIONARY SOURCE CIVIL PENALTY POLICY.