1. LEGAL BASIS FOR PROPOSED ACTION: SECTIONS 104, 106, AND 107 OF CERCLA OF 1980, 42 U.S.C. SECTIONS 9604, 9606, AND 9607, AS AMENDED BY THE SARA OF 1986, PUB. L. NO. 99-499. 100 STAT. 1613 (1986). 3. LIABILITY OF DEFENDENTS: DEFENDANT, THE SELMER CO., AS THE CURRENT OWNER OF A FACILITY FROM WHICH HAZARDOUS SUB- STANCES HAVE BEEN AND CONTINUE TO BE RELEASED INTO THE EN- IRONMENT, IS LIABLE FOR RESPONSE COSTS INCURRED BY U.S.EPA IN CONNECTION WITH A PROERTY LOCATED AT 500 INDUSTRIAL PARKWAY IN ELKHART, INDIANA (THE SITE), AND FOR EQUITABLE RELIEF TO ABATE THE THREAT WHICH THEY MAY POSE. DEFENDANT, MACMILLIAN, INC, IS LIABLE AS A PERSON WHO AT THE TIME OF DISPOSAL OF A HAZARDOUS SUBSTANCE OWNED OR OPERATED THE SITE. NORTH AMERICAN PHILLIPS CORPORATION MAY BE LIABLE BECAUSE SELMER WAS ONE OF ITS DIVISOINS AT A TIME THAT EPA MAY HAVE INCURRED SOME OF ITS REMOVAL COSTS. 4. PROPOSED RELIEF: U.S. EPA SEEKS RECOVERY OF ALL COSTS INCURRED BY U.S. EPA TO DATE IN RESPONDING TO THE RELEASE OF HAZARDOUS SUBSTANCES AT OR FROM THE SITE. ITS COSTS ARE APPROXIMATELY $569,000, THROUGH MARCH, 1988. IT ALSO SEEKS DECLARATORY RELIEF AS TO ALL FUTURE COSTS AND AN EQUITABLE ORDER REQUIRING A STUDY AND CLEANUP. 7. EVIDENCE OF LIABILITY: SAMPLING CONDUCTED BY U.S. EPA AND THE STATI OF INDIANA DETERMINED