BACKGROUND AND NATURE OF CASE THIS IS A PROPOSED COST RECOVERY ACTION UNDER SECTION 107 OF CERCLA. LIQUID DYNAMICS, LOCATED AT 655 EAST 114TH STREET, CHICAGO, ILLINOIS, OPERATED AN INDUSTRIAL LIQUID WASTE TREATMENT PLANT FOR THE PERIOD SEPTEMBER 1980 THROUGH OCTOBER 1982. THE FACILITY TREATED CHEMICAL WASTES GENERA- TED BY PAINT, COATINGS, ADHESIVES, FOOD, HEALTH AND BEAUTY CARE, CHEMICAL PROCESSING, METAL FINISHING AND RELATED IN- DUSTRIES. TREATMENT CAPACITY AT THE FACILITY WAS 100,000 GALLONS PER DAY. IN JULY 1981 LIQUID DYNAMICS FILED FOR REORGANIZATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE. IN OCTOBER 1982 THE CHAPTER 11 PROCEEDING WAS CONVERTED TO AN INVOLUNTARY CHAPTER 7 LIQUIDATION PROCEEDING. LIQUID DYNAMICS ABANDON- ED THE FACILITY IN OCTOBER 1982. AT THE TIME OF ABANDON- MENT SEVERAL THOUSAND GALLONS OF HAZARDOUS WASTES (FLAM- MABLE, CORROSIVE AND TOXIC WASTES) WERE LEFT ON THE PREMISES IN JANUARY 1983 VANDALS GAINED ENTRANCE TO ONE OF THE FACILITY'S BUILDINGS, OPENED PROCESS EQUIPMENT AND CAUSED THE RELEASE OF THOUSANDS OF GALLONS OF SLUDGE-LIKE TOXIC WASTE ONTO THE FLOOR OF THE BUILDING. SEVERAL HUNDRED GAL- LONS OF THE WASTE SEEPED OUT OF THE BUILDING AND WERE RE- LEASED TO THE ENVIRONMENT. THE ILLINOIS ENVIRONMENTAL PRO- TECTION AGENCY TOOK RESPONSIVE ACTION TO CLEAN UP THE SPILL. IN EARLY APRIL 1983 THE SITE WAS AGAI