THE USEPA, REGION V, IS HEREBY TRANSMITTING A MINI-LITIGA- TION REPORT FOR NEGOTIATIONS AT THE THERMO CHEM SUPERFUND SITE LOCATED MUSKEGON, MI. - THE SITE WAS OPERATED AS A SOLVENT AND CHEMICAL WASTE RE- PROCESSING, REFINING, AND INCINERATION FACILITY FROM 1969 UNTIL AUGUST 1980. HALOGENATED AND NONHALOGENATED SOLVENTS, PAINT WASTES, AND ANTIFREESE RECEIVED AT THE SITE WERE DISTILLED TO REGENERATE USABLE SOLVENTS. UNRECOVERABLE MATERIALS WERE REPORTEDLY INCINERATED ON-SITE, AS WERE PRO- CESSING BY-PRODUCTS SUCH AS SLUDGES AND RESIDUES. WASTE- WATER GENERATED FROM THE DISTILLATION AND EQUIPMENT CLEANING PROCESS WAS DISCHARGED INTO A SERIES OF 3 INTERCONNECTED LAGOONS. HAZARDOUS SUBSTANCES WERE ALSO STORED IN UNDER- GROUND STORAGE TANKS AT THE SITE. - THE SITE CONSISTS OF 2 PROPERTIES, BOTH OWNED AND CONTROLLED BY THE THOMAS SOLVENT COMPANY. THE NORTHERN PROPERTY, OPERATED BY A DIVISION OF THOMAS SOLVENT COMPANY, SERVED AS A TRANSACTION POINT FOR HAZARDOUS SUBSTANCES, POLLUTANTS AND CONTAMINANTS COMING TO AND FROM THE SITE. THE SOUTHERN PROP ERTY, OPERATED BY SUBSIDIARY, CONTAINED THE LABORATORY, RE- CYCLING AND INCINERATION OPERATIONS. - HIGH CONCENTRATIONS OF ORGANIC AND I