TONOLLI CORP. IS THE OWNER & OPERATOR OF A USED BATTERY RECYCLING FACILITY LOCATED IN NESQUEHONING, PA. THE FACILI- TIES INCLUDES 2 TANKS, A SURFACE IMPOUNDMENT & A LANDFILL USED FOR TREATMENT, STORAGE &/OR DISPOSAL OF VARIOUS WASTES GENERATED AT THE FACILITY, INCLUDING EMISSION CONTROL SLUDGE FROM SECONDARY LEAD SMELTING; SLUDGES FROM A NEUTRALIZATION TREATMENT PROCESS WHICH EXHIBIT THE CHARACTERISTIC OF E.P. TOXICITY FOR CADMIUM &LEAD; CRUSHED BATTERY CASES EXHIBIT- ING THE CHARACTERISTIC OF E.P. TOXICITY FOR ARSENIC; & WASTES EXHIBITING THE CHARACTERISTIC OF CORROSIVITY & THE CHARACTERISTICS OF EP TOXICITY FOR ARSENIC, CADMIUM, CHRO- MIUM & LEAD. ON 5/10/85, REG 3 COMPLETED A REVIEW OF DEF'S GROUNDWATER MONITORING PROGRAM, BASED IN PART ON THE 2 DEF GROUNDWATER MONITORING REPORTS. EPA CONCLUDED THAT DEF'S GROUNDWATER MONITORING SYSTEM IS INADEQUATE. THE DEFICIENCIES CONSTITUTE A VIOLATION OF 25 PA CODE SEC 75.265(N). UNDER SEC 3008(G) OF RCRA, 42 USC SEC 6928(G), THE MAXIMUM CIVIL PENALTY FOR EACH DAY OF SUCH VIOLATION IS $25,000. ON 10/29/85, DEF FILED A PETITION FOR REORGANIZATION UN- DER CHAP 11 OF THE BANKRUPTCY CODE. ON 1/24/86, DEF'S CHAP- TER 11 REORGANIZATION WAS CONVERTED TO A LIQUIDATION PRO- CEEDING UNDER CHAP 7 OF THE BANKRUPTCY CODE. AS A RESULT OF DEF'S BANKRUPTCY, IT BECAME NECESSARY FOR EPA TO FILE W/THE BANKRUPTCY COURT A P