ON MAY 21, 1998, BIONETICS CONDUCTED A DIRECTED INSPECTION OF RESPONDENT'S BALTIMORE TERMINAL LOCATED AT 2400 PETROLIA AVENUE, BALTIMORE, MD. THE INSPECTION WAS CONDUCTED IN RES PONSE TO A DIRECTED INSPECTION CONDUCTED ON MAY 6, 1998, AT WHICH BIONETICS INSPECTED SEVEN (7) GASOLINE STORAGE TANKS A ND DISCOVERED THAT TWO (2) OF THE SEVEN (7) CONTAINED NON-CO MPLIANT GASOLINE. FIRST VIOLATION - TANK # 7: ON MAY 6, 199 8, CONVENTIONAL GASOLINE STORED AT RESPONDENT'S TERMINAL, IN TANK # 7 - A PREMIUM CG TANK, FAILED TO MEET THE APPLICABLE RVP STANDARD. SPECIFICALLY, THE TOP TWO (2) FEET OF GASOLI NE IN TANK # 7 HAD AN RVP OF 9.85 PSI WHICH EXCEEDS THE APPL ICABLE STANDARD OF 9.0 PSI. SECOND VIOLATION - TANK # 22: O N MAY 6, 1998, GASOLINE STORED AT RESPONDENT'S TERMINAL, IN TANK # 22 - A PREMIUM RFG UNLEADED GASOLINE TANK, FAILED TO MEET THE APPLICABLE STANDARD. SPECIFICALLY, THE TOP TWO (2) FEET OF GASOLINE IN TANK # 22 HAD A VOC EPR OF 26.8 % INSTE AD OF A MINIMUM VOC EPR OF 32.6% WT. AS THE REFINER WHO OWNED THE FACILITY WHERE THE VIOLATIONS W HERE THE VIOLATIONS WERE FOUND SHELL IS LIABLE FOR VIOLATIO N OF 40 C.F.R. 80.27(A)(2), PURSUANT TO 40 C.F.R. 80.28(A ), FOR THE FIRST VIOLATION (PROPOSED PENALTY OF $4,500) AND FOR VIOLATION OF 40 C.F.R. 80.78(A)(1), PURSUANT TO 40 C.F .R. 80.79(A)(2), FOR THE SECOND VIOLATION (PROPOSED PENALT Y $37,000.00) A SETTLEMENT AGREEMENT WAS ENTERED INT