DEPARTMENT OF THE ARMY

San Francisco District, Corps of Engineers

333 Market Street

San Francisco, CA  94105-1905



Construction Operations Division



November 6, 1996                                        03 00070 96110602



Mr. Robert D. Johnston
President
Dutra Dredging Company
1000 Point San Pedro Road
San Rafael, CA  94901

Subject:  Contract No. DACW07-95-C-0003

Dear Mr. Johnston:


It has been reported by my field staff that debris are being
allowed to float free from the project site in the Turning Basin,
where you are currently dredging soft material for Galbraith
disposal.




In accordance with Paragraph 9, Section 02480 of your
contract, you are hereby directed to immediately, as of this day,
November 6, 1996 at 1300 hours, begin removing such debris and
disposing of them outside the limits of your work onto a land
disposal site.




In accordance with Paragraph 3, Section 01430 of your
contract, you are hereby notified of your non-compliance with the
environmental regulations incorporated by your contract. You are
directed to immediately take corrective action, as of this day,
November 6, 1996 at 1300 hours.




In accordance with Paragraph 1.4, Section 01405 of your contract, you are
hereby directed to change your Contractor Quality Control Plan to include the
measures you are taking to prevent repeated occurrences and submit the changed
Plan to thls office by noon on November 7, 1996.





















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In accordance with Paragraph 4, Section 01404 of your
contract, you are hereby directed to begin holding the required
Preparation Inspection, Initial Inspection, and Follow-up
Inspections by 1800 hours this day, November 6, 1996 and to
submit the reports resulting from these inspections to this
office and to my field staff within 24 hours of the completion of
the inspections.




Sincerely,






Max R. Blodgett
Contracting Officers Representative