EPA INSPECTORS FROM THE RCRA OFFICE CONDUCTED A MULTI- MEDIA COMPLIANCE INSPECTION ON JUNE 14 AND 15, 2000. EPA ISSUED A REQUEST FOR INFORMATION PURSUANT TO SECTION 3007 OF RCRA ON JUNE 27, 2000. KATAHDIN PROVIDED A RESPONSE TO THIS INFORMATION REQUEST ON JULY 31, 2000. INSPECTORS IDENTIFIED VIOLATIONS OF RCRA REQUIREMENTS. THE RCRA COMPLAINT ALLEGES VIOLATIONS BASED ON OBSERVA- TIONS MADE DURING THE RCRA INSPECTION. THE MOST ENVIRONMEN- TALLY SIGNIFICANT RCRA COUNTS ARE BASED ON KATAHDIN'S STORAGE OF HUNDREDS OF CONTAINERS OF HAZARDOUS WASTE FOR GREATER THAN 90 DAYS W/O A PERMIT, AND W/O COMPLYING WITH THE STATE OF MAINE HAZARDOUS WASTE MANAGEMENT RULES. IN FACT KATAHDIN STORED NUMEROUS CONTAINERS OF HAZARDOUS WASTE FOR OVER FOUR YEARS W/O A PERMIT. AT THE TIME OF THE INSPECTION, THE CONTENTS OF MOST OF THE WASTES WERE KNOWN. HOWEVER, WASTE DETERMINATION HAD NOT BEEN MADE FOR MANY LAB-PACK WASTES WHICH WERE NOT LABELED AS HAZARDOUS WASTE. PROPER AISLE SPACING WAS NOT MAINTAINED. CONTAINERS WERE STACKED ON TOP OF CABINETS AND IN AISLES. BASED ON THE NATURE OF THE WASTES AND THE POTENTIAL THREAT POSED BY THEIR MISMANAGEMENT THERE WAS A SUBSTANTIAL POTENTIAL FOR HARM TO HUMAN HEALTH AND THE ENVIRONMENT FROM A RELEASE, SPILL, FIRE OR EXPOLSION CIVIL PENALTY: THE RCRA CIVIL PENALTY POLICY YEILDS A PENALTY OF APPROXIMATELY ONE MILLION DOLLARS. A PRELIMINARY REVIEW OF KATAHDIN'S FINANCIAL CONDITIO