NORTHWAY OPERATES AN AUTOMOTIVE COATING BUSINESS IN ROSEVILLE, MICHIGAN. ON FEB. 19, 1987, THE MICHIGAN DEPT. OF NATURAL RESOURCES (MDNR) CONDUCTED AN INSPECTION OF NORTH WAY'S FACILITY AND NOTED A NUMBER OF VIOLATIONS OF HAZARDOUS WASTE REGULATIONS. AFTER MDNR REFERRED THE CASE TO USEPA FOR ENFORCEMENT, THE AGENCY ISSUED A COMPLAINT ON AUGUST 4, 1987. THE COMPLAINT WAS RESOLVED THROUGH A CONSENT AGREE- MENT AND FINAL ORDER (CAFO) ENTERED ON APRIL 18, 1988. THE CAO REQUIRED NORTHWAY TO SUBMIT EVIDENCE OF COMPLI- ANCE WITH TEN REGULATORY REQUIREMENTS AND TO PAY A PENALTY OF $5,000. THE PENALTY WAS TO HAVE BEEN PAID IN FIVE INSTAL LMENTS, BEGINIINIG ON MAY 18, 1988. TO DATE, NORTHWAY HAS MADE NO PAYMENTS AND SUBMITTED NO EVIDENCE OF COMPLIANCE, DESPITE REPEATED REMINDERS AND WARNINGS FROM THE AGENCY. USEPA CONSIDERS NORTHWAY'S FAILURE TO COMPLY WITH THE TERMS OF THE CAFO A SERIOUS OFFENSE. THE ABILITY OF FEDERAL AND STATE GOVERNMENT TO REGULATE HAZARDOUS WAST ACTIVITY EFFICIENTLY DEPENDS UPON THE ABILITY TO ENFORCE ADMINISTRA- TIVE ORDERS. TO TOLERATE NORTHWAY'S INACTION WOULD ENCOUR- AGE A LAX ATTITUDE TOWARD RCRA COMPLIANCE ON THE PART OF NORTHWAY AND THE REGULATED COMMUNITY AT LARGE.