NATURE OF THE CASE: THIS IS A DIRECT REFERRAL PURSUANT TO THE SEPTEMBER 29, 1983, LETTER AGREEMENT BETWEEN THE ENVIRO- MENTAL PROTECTION AGENCY AND THE DEPT OF JUSTICE AND THE RE- CENT ADDENDUM TO INCLUDE FIFRA COLLECTION CASES FOR UNPAID ADMINISTRATIVELY ASSESSED PENALTIES. ON MAY 29, 1984, EPA, REGION IV ISSUED AN ADMINISTRATIVE COM PLAINT AND NOTICE OF OPPORTUNITY FOR HEARING TO POOLSIDE, INC., 2813 GUESS RD, DURHAM, N.C. 27705 ALLEGING VIOLATIONS OF FIFRA AND PROPOSING A PENALTY OF $800.00. A MOTION FOR DE FAULT WAS MADE ON AUGUST 13, 1984, BY THE AGENCY. NO RE- SPONSE WAS MADE TO THIS MOTION AND THEREFORE THE FINAL ORDER UPON DEFAULT WAS ENTERED ON SEPTEMBER 11, 1984, AND RESPON- DENT WAS NOTIFIED OF SAME. ON SEPTEMBER 12, 1984, THE AGENCY MADE A DEMAND FOR PAYMENT BY CERTIFIED MAIL RETURN RECEIPT REQUESTED. A FINAL DEMAND FOR PAYMENT WAS MADE ON JANUARY 25, 1985 BY CERTIFIED MAIL RETURN RECEIPT REQUESTED. ISSUES OF NATIONAL OR PRECEDENTIAL SIGNIFICANCE: THE IM- PORTANCE OF PURSUING THIS ACTION IS TO ENSURE THAT THE REG- ULATED COMMUNITY WILL TAKE SERIOUSLY ADMINISTRATIVELY ASSESS ED PENALTIES. RECOMMENDED ACTION: THIS OFFICE RECOMMENDS THAT COLLECTION PROCEEDINGS BE COMMENCED IMMEDIATELY AGAINST POOLSIDE, INC., PURSUANT TO SECTION 14(A)(5) OF FIFRA.