NATURE OF THE CASE: JOHN LYNCH & 2 CORP'S CONTROLLED BY HIM, POSITIVE CHEMICAL CORP & CHELSEA TERMINAL, INC.(POSITIVE/CHELSEA), OPERATED AS A TOXIC & HAZ WASTE STORAGE AREA A FORMER PETROLEUM TANK FARM ON STATEN ISLAND, NY. THE SITE, KNOWN AS CHELSEA TERMINAL, WAS LEASED BY LYNCH FROM TEXACO,INC, FROM 6/78 TO 5/80. THE LEASED FACILITY CONTAINED 9 LARGE TANKS W/A TOTAL STORAGE CAPACITY OF ALMOST 1 MILLION GAL. THE RA OF REGN 2 HAS DETERMINED THAT POSITIVE/CHELSEA HAS NOT PREPARED OR IMPLEMENTED A SPILL PREVENTION CONTROL & COUNTERMEASURE (SPCC) PLAN REQUIRED BY THE CWA TO SAFE- GUARD AGAINST DAMAGE BY SPILLS OF OIL OR HAZ SUBSTANCES. CAUSE OF ACTION: THE DEF'S FAILURE TO IMPLEMENT OR PREPARE AN SPCC PLAN IN VIOL OF 40 CFR 112, WHICH IMPLEMENTS SEC 311(J) (1)(C) OF THE CWA, RESULTED IN SERIOUS GROUND POLLUTION OF THE SITE & OBSERVABLE POLLUTION OF WATERS OF THE ARTHUR KILL. THE AGENCY ISSUED NOV TO POSITIVE/CHELSEA ON 12/12/79, ALONG W/OTHER POTENTIAL DEF'S USING THE SITE. AS A RESULT OF INFO RECEIVED THROUGH A STTLMNT CONF ON 5/21/80, PAPERS FILED BY THE RESPONDENTS TO THE NOV'S, & CONVERSATIONS W/A REPRESENTATIVE OF THE STATE OF NY, THE RA APPORTIONED FINANCIAL LIABILITY AMONG THE RESPONDENTS ON 11/30/80, IN ACCORDANCE W/40 CFR PART 114. IN THAT AP- PORTIONMENT, POSITIVE/CHELSEA WAS ASSE