OLIVER IS A POTENTIALLY RESPONSIBLE PARTY (PRP) AT THE FOL KERTSMA REFUSE SITE IN GRAND RAPIDS, MICHIGAN. THIS ACTION IS NECESSARY TO ASSUME CONTROL OF AND TO PRESERVE THE U.S. CLAIM REGARDING THE FOLKERTSMA SITE. A. NATURE OF THE DEBTOR'S INVOLVEMENT AT THE SITE THE DEBTOR'S (OLIVER) PREDECESSOR SENT FOUNDRY SAND TO THE FOLKERTSMA SITE (FACILITY) FOR DISPOSAL. FOUNDRY SAND IS A HAZARDOUS SUBSTANCE. THUS OLIVER MACHINERY ARRANGED FOR THE DISPOSAL OF HAZARDOUS SUBSTANCES AT A FACILITY, WITHIN THE MEANING OF SECT 107(A3) OF CERCLA. B. NATURE OF THE USEPA RESPONSE ACTION USEPA IS IN THE INITIAL STAGES OF THE CERCLA RESPONSE ACTION AT THE FOLKERTSMA REFUSE SITE. AFTER NEGOTIATIONS FOR VOLUN TARY CONDUCT OF AN RI/FS TERMINATED IN LATE SEPTEMBER 1987, USEPA INITIATED A FUND-FINANCED REMEDIATED INVESTIGATION/FEA SIBILITY STUDY (RI/FS). THE SITE IS A CANDIDATE FOR THE NAT'L PRIORITIES LIST (NPL). THE RESPONSE COSTS INCURRED THIS FAR ARE $33,271.95. ANOTHER $100,000 HAS BEEN OBLIGATED C. NATURE OF THE BANKRUPTCY PROCEEDING USEPA FIRST LEARNED OF OLIVER'S CHAPTER 11 BANKRUPTCY IN EAR LY AUGUST 1988, WHEN IS RECEIVED A NOTICE OF AMENDMENTS TO DEBTOR'S SCHEDULES AND MATRIX OF CREDITORS. THIS NOTICE WAS NOT PROPER NOTICE TO THE U.S. SINCE, UNDER THE BANKRUPTCY CODE, THE AUSA MUST RECEIVE NOTICE. OLIVER'S AMENDMENT IN- CLUDED, APPARENTLY FOR THE FIRST TIME,