NATURE OF THE CASE: THIS PROPOSED COST RECOVERY CASE CONCERNS THE LIQUID DIS- POSAL, INC. SITE (LDI SITE) IN MACOMB COUNTY, MI. THE LDI SITE WAS USED TO INCINERATE LIQUID WASTE FROM APPROXIMATELY JANUARY 1968 TO JANUARY 1982. THE MAJOR SITE FEATURES INCLU DED A HIGH TEMPERATURE INCINERATOR, A WASTE LIQUID LAGOON, A SCRUBBER WASTE LAGOON AND NUMEROUS ABOVE AND BELOW GROUND STORAGE TANKS. THE LDI SITE WAS PERMANENTLY CLOSED IN JANU- ARY 1982 AFTER TWO WORKERS WERE KILLED IN AN INDUSTRIAL ACCI DENT. THE LDI SITE WAS LISTED ON THE NAT'L PRIORITIES LIST ON DEC. 30, 1982. FROM MAY 1982 TO APRIL 1986, USEPA COMPLETED FOUR REMOVAL ACTIONS TO ABATE THE RELEASE AND SUBSTANTIAL THREAT OF RELEASE OF PCB AND OTHER HAZARDOUS SUBSTANCES FROM THE LDI SITE. REMOVAL ACTIVITIVES INCLUDED RECOVERY OF CON- TAMINATED OIL AND SEDIMENT ON AND OFF SITE, CLOSURE OF THE SURFACE LAGOONS AND INCINERATION OF FLAMMABLE LIQUIDS AND SLUDGE IN ABOVE AND BELOW GROUND TANKS. THE MICHIGAN DEPT OF NATURAL RESOURCES, THROUGH A COOPERATIVE AGREEMENT WITH THE USEPA, INITIATED A REMEDIAL INVESTIGATION/FEASIBILITY STUDY (RI/FS) AT THE LDI SITE IN SEPT. OF 1983. THE RI/FS WAS COMPLETED IN AUGUST OF 1987, AND USEPA ISSUED A RECORD OF DECISION (ROD) ON SEPT. 30, 1987. THE RI/FS DEMONSTRATED THAT SURFACE SOILS AT THE LDI SITE AND IN THE VICINITY OF THE LDI SITE ARE CONTAMINATED WITH A W