T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on and i s notpr e c e de nt * e xc e pta s pr ovi de d by9th C i r . R . 36- 3. NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T E X X O N M O B I L C O R P O R A T I O N , a N e w J e r s e yc orpor a t i on, P la in tif

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e n d a n t - A p p e lla n t, v. N E W W E S T P E T R O L E U M , L P , a C a lif o rn ialim ite d p a rtn e r s h ip ; e t a l., D efen d an t s-cro ss-cl ai m an t s - A p p el l ees, a nd SA RTA JSI N G H BA I N S, T h ir d - p a rty - d e f e n d a n tcoun t er -c l ai m ant- A pp el l ee . N o. 08- 17651 D . C. N o . 2 : 0 3 - c v - 0 2 2 2 2 - W BSEFB ME MOR AN DU M *

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e E a s te rn D is tr ic t o f C a lif o rn ia W i l l i a m B . S hubb, D i s tr i c tJ udge , P r e s i di ng A r gue d a nd S ubm i tt e d F e brua ry8, 2010 S a n F r a n c is c o , C a lif

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# FI LED MA R 04 2010 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALS- 2-

B efo re: G O O D W IN , B E R Z O N an d IK U T A , C i rcu i tJu d g es. T he P ur c ha s e & S a l e A gr e e m e ntge ne r a l l ym a ke s E xxon M obi l C orpor a t i on (“E x x o n M o b il ”) re sp o n sib le fo r c o n tam in atio n ca u se d b y E x x o n M o b il ’s o p e r a tio n s . Se e g e n e r a llyP ur c ha s e & S a l e A gr e e m e ntS e c t i ons 12, 19. R e l e va nt he r e , S e c t i on 11( b) of

the P ur c ha s e & S a l e A gr e e m e ntpr ovi de s tha ti f the appl i c abl e gove rnm e nt a l author i tyr e qui r e s f urthe ra s s e s s m e nt s a nd r e m e di a t i on of pe tr ol e um hy dr oc a rbons , a s i tdi d i n thi s c a s e , a nd s uc h pe tr ol e um hy dr oc a rbons w e r e c aus e d byE xxonM obi l ’ s ope r a t i ons , the n ( 1) the B a s e l i ne C ondi t i on of the P r o p e rtyis m o d if

ie d b a s e d o n th e r e s u lts o f s u c h a s s e s s m e n ts ; a n d ( 2 ) E x x o n M o b il i s r e s pons i bl e f

ora ddr e s s i ng the m odi f i e d B a s e l i ne C ondi t i on pur s ua ntt o S e c t i on 12. C ontr a ryt o E xxonM obi l ’ s a r gum e nt , N e w W e s t ’ s a gr e e m e nti n S e c t i on 18 of the A gr e e m e ntt o “ hol d ha rm l e s s ” E xxonM obi l f ors pe c i f i e d i s s ue s doe s nota l l ow E xxonM obi l t o s ue N e w W e s tf ori nde m ni tyf

orc ont a m i na t i on c aus e d by E x x o n M o b il’s p r io ro p e r a tio n s . Se e Q ue e n V i l las H om e ow ne rs A s s '

n v . TC B P r op. M gm t. , 56 C al . R ptr. 3d 52 8, 53 4 (C al . C t . A pp . 20 07 ). A cc ordi ng l y, the di stri ct c o u rt c o rr e c tlyd e te rm in e d th a t u n d e rth e P u r c h a s e & S a le A g r e e m e n t, E xxonM obi l a gr e e d t o t a ke r e s pons i bi l i tyf orthe c os t s of

r e m e di a t i ng the c o n ta m in a tio n a t is s u e , p r o v id e d th a t it w a s c au s e d b yE x x o n M o b il’s o p e r a tio n s .- 3-

T h e d is tr ic t c o u rt d id n o t c le a r lye rrin f in d in g th a t E x x o n M o b il f a ile d to p r o v e , b y ap r e p o n d e r a n c e o f th e e v id e n c e , th a t th e r e p o rte d in c r e a s e s in c ont a m i na t i on w e r e notc aus e d by E xxonM obi l ’ s ope r a t i ons pr i ort o the C l os i ng D a t e . T hi s f

i ndi ng w a s s upport e d by e vi de nc e tha tthe M t B E c onc e ntr a t i ons i nc r e a s e d w hi l e the N orthga t e s t a t i on w a s c l os e d f orupgr a de s , tha tthe s ubs e que nt l es se es of the N orthg at e P roperty t oo k sub st ant i al m ea sure s t o p re ventand d et ec t re l ea se s, and thatno po st -C l osi ng D at e M t B E re l ea se of the m agni tud e nec es sary t o p rodu ce the re po rt ed re sul t s w as det ec t ed. W hi l e E xx on M ob i l pres ent ed e vi de nc e t o the c ontr a ry , the di s tr i c tc ourt ’ s f i ndi ng i s “ pl aus i bl e i n l i ghtof the re cord vi ew ed i n i t s e nt i re ty. ” Ma r l y n N u tr a c e u t i c a l

s , I n c . v . Mu c o s P h a rma G m bH & C o. , 57 1 F . 3d 87 3, 87 8 (9th C i r. 20 09 ) ( qu ot at i on m arks om i tt ed). In lig h t o f th is f a c tu a l f in d in g , th e d is tr ic t c o u rt c o rr e c tlyc o n c lu d e d th a t E x x o n M o b il w a s r e s p o n s ib le f

o rth e c o n ta m in a tio n a t is s u e u n d e rth e P u r c h a s e & S a le A g re em en t. B ec au se th is co n clu sio n w as n o t clear ly erro n eo u s, th e d istrict co u rt’s deci si on on dam ages w as al so no tcl ear e rr or. F i na l l y , the di s tr i c tc ourtdi d notabus e i t s di s c r e t i on i n r e f us i ng t o gr a nt E x x o n M o b il d e c la r a to ryju d g m e n t. Se e P r i nc i pal L i f e I ns . C o. v . R obi ns on , 394 F . 3d 665, 669 ( 9th C i r . 2005) . T he di s tr i c tc ourtw a s notr e qui r e d t o e nt e rt a i n the d e c la r a to ryju d g m e n t c la im , s e e G ov ’ t E m ploy e e s I ns . C o. v . D i

z ol , 133 F . 3d 1220,- 4-

1223 ( 9th C i r . 1998) ( e n ba nc ) , a nd the c ourt ’ s c onc l us i on tha ti t s de c i s i on on the br e a c h of

c ontr a c tc l a i m r e s ol ve d the de c l a r a t oryr e l i e f c l a i m i s c ons ona ntw i th our di r e c t i on tha tdi s tr i c tc ourt s m a yr e f us e t o e xe r c i s e the i rdi s c r e t i on w he r e the de c l a r a t orya c t i on w i l l not“ s e rve aus e f ul purpos e i n c l a r i f

y i ng the l e ga l r e l a t i ons ati ss ue, ” i d. a t1225 n. 5. AF F I RME D.