THE FACILITY SELECTED THE LETTER OF CREDIT ALTERNATIVE AS ITS MEANS OF PROVING ADEQUATE FINANCIAL ASSURANCE FOR CLO- SURE. WHILE THE FACILITY OBTAINED THE LETTER OF CREDIT IN THE PROPER AMOUNT, IT FAILED TO TIMELY FILE THE PROOF WITH THE STATE AS REGULATIONS REQUIRE AND TO UPDATE ITS CLOSURE COST ESTIMATES. THE PENALTY ASSESSED WAS $7550 AND THE PAR- TIES AGREED TO SETTLE THE CASE FOR $6000. A DRAFT CAFO HAS BEEN EXECUTED BY THE FACILITY. A FULLY EXECUTED CAFO IS EX- PECTED TO BE FILED WITH THE ADMINISTRATIVE LAW JUDE BY MID- FEBRUARY. IDENTITY OF DEFENDANT: FEDERATED METALS CORP. (FMC), A NEW YORK CORP. DOING BUSINESS AT 2230 INDIANAPOLIS' BLVD., WHITING, INDIANA. LEGAL BASIS FOR PROPOSED ACTION: SECT 3008 OF THE RE- SOURCE CONSERVATION AND RECOVERY ACT OF 1976, AS AMENDED, 42 USC 6901 ER SEQ. ALLEGED VIOLATIONS: FMC HAS FAILED TO COMPLY WITH THE CAFO ENTERED ON FEB. 1, 1989. SPECIFICALLY, FMC HAS FAILED TO DOCUMENT COMPLIANCE WITH INSURANCE AND FINANCIAL ASSU- RANCE REGULATIONS. IN ADDITION, FMC HAS VIOLATED LIABILITY INSURANCE REQUIREMENTS NOT CONTAINED IN THE CAFO. PROPOSED RELIEF: THE RELIEF USEPA SEEKS IN THIS ACTION IS THREEFOLD: 1) AN INJUNCTION REQUIRING FMC TO SUBMIT DOCU MENTATION OF COMPLIANCE WITH THE INDIANA REGULATIONS CITED WITH THE CAFO; 2) COMPLIANCE WITH IND