NATURE OF THE CASE AVESTA, INC. OWNS AND OPERATES THE INGERSOLL STEEL DIVISION FACILITY IN NEW CASTLE, INDIANA, WHICH IS A STEEL PRODUCTION AND ROLLING MILL OPERATION. THE FACILITY USES A SURFACE IMPOUNDMENT FOR THE DISPOSAL OF HAZARDOUS WASTE. THE FACILITY LOST INTERIM STATUS BY OPERATION OF LAW ON NOVEMBER 8, 1985 DUE TO ITS FAILURE TO CERTIFY COMPLIANCE WITH THE NON-SUDDEN ACCIDENTAL LIABILITY INSURANCE REQUIRE- MENTS OF RCRA, PURSUANT TO SECTION 3005(E)(2) OF RCRA, 42 U.S.C. SECTION 6925(E)(2). THE COMPANY SUBSEQUENTLY LOST ITS SUDDEN ACCIDENTAL LIABILITY INSURANCE AS WELL. ALSO, AVESTA, INC. FAILED TO SUBMIT A CLOSURE OR A POST-CLOSURE PLAN WITHIN 15 DAYS OF LOSING INTERIM STATUS, AS REQUIRED BY THE AUTHORIZED STATE REGULATIONS. ON APRIL 24, 1986 THE COMPANY WAS OBSERVED ADDING ADDITIONAL HAZARDOUS WASTE TO THE SURFACE IMPOUNDMENT. CAUSE OF ACTION EPA SEEKS RELIEF UNDER SECTION 3008 OF RCRA, 42 U.S.C. SECTION 6928, WHICH AUTHORIZES INJUNCTIVE RELIEF AND CIVIL PENALTIES UP TO $25,000 PER DAY FOR VIOLATIONS OF RCRA OR ITS IMPLEMENTING REGULATIONS. PROPOSED REMEDY EPA WOULD SEEK COMPLIANCE WITH THE FINANCIAL RESPONSI- BILITY REGULATIONS, THE SUBMITTAL OF CLOSURE AND POST- CLOSURE PLANS, PHYSICAL CLOSURE OF THE