NATURE OF THE CASE: BAILY'S SAWMILL, INC., IS A SMALL, CLOSELY-HELD CORP WHICH OPERATES A SAWMILL. THE CONICAL WOODWASTE BURNER AT THIS FACILITY IS THE SOURCE OF EMISSIONS AT ISSUE IN THE CASE. CAUSE OF ACTION: THE WOODWASTE BURNER WAS CITED FOR VIOL'S OF THE TENN STATE IMPLEMENTATION PLAN REGULATION WHICH LIMITS VISIBLE EMISSIONS. THE SIP PROHIBITS VISIBLE EMISSIONS IN EXCESS OF 20%, W/AGGREGATE EXCEPTIONS OF 5 MINUTES IN AN HR & 20 MIN- UTES IN A 24-HR PERIOD. PROPOSED REMEDY: THE VIOLATING BURNER AT THE FACILITY IS NOW PERMANENTLY SHUT DOWN. EPA HAS BEEN NEG'ING A CD W/THE SOURCE WHICH WOULD PROHIBIT THE CO FROM RESUMING OPERATION OF THE WOOD- WASTE BURNER, & WOULD REQUIRE THE PAYMENT OF CIVIL PLTY'S FOR PAST VIOL'S. NATIONALLY SIGNIFICANT ISSUES: NONE.