FAIRCHILD REPUBLIC COMPANY OWNS, OPERATES AND MAINTAINS A PLANT AT WHICH THE COMPANY MANUFACTURES AIRCRAFT AND AIR- CRAFT PARTS INCLUDING THE SURFACE COATING OF AIRCRAFT AND MISCELLANEOUS METAL PARTS FOR VARIOUS AIRCRAFT. THE USA EPA HAS DETERMINED THAT THE COMPANY'S FACILITY HAS BEEN IN VIOLATION OF APPLICABLE STANDARDS GOVERNING THE USE OF SURFACE COATINGS AND/OR EMISSIONS OF VOLATILE ORGANIC CMPDS AS SET FORTH IN PART 228 OF 6 NYCRR AND HAS CONTINUED TO OPERATE IN VIOLATION OF THESE STANDARDS MORE THAN 30 DAYS AFTER THE REGION 2 EPA NOTIFIED THEM OF THE VIOLATION. THE CO. HAS MAINTAINED THAT ITS ABILITY TO COMPLY WITH THE EMISSION LIMITATIONS WILL DEPEND ON ITS CUSTOMER'S ACCEPTANCE OF SURFACE COATINGS WHICH ARE FORMULATED TO COM- PLY WITH THE STANDARD AND MAY HAVE DIFFERENT PERFORMANCE CHARACTERISTICS FROM THOSE COATINGS NOW IN USE. ITS MAJOR CUSTOMERS ARE THE DEPT. OF DEFENSE (AIR FORCE) AND BOEING (COMMERCIAL AIRCRAFT). THE COMPANY HAS MAINTAINED THAT ITS ABILITY TO COMPLY IS AT THE MERCY OF THE DOD AND BOEING.