THIS IS A COUNTERCLAIM WITH THE RESPONSIVE PLEADING IN AL TECH SPECIALTY STEEL CORP. V. U.S. EPA, AN ACTION FILED IN FEDERAL DISTRICT COURT. THE SUIT SEEKS A DECLARATORY JUDGMENT AS TO WHETHER THE PLAINTIFF'S FACILITY IN WATER- VLIET, N.Y., COMES UNDER RCRA PERMITTING REQUIREMENTS. THIS REFERRAL OUTLINES A COUNTERCLAIM SEEKING CIVIL PENALTIES FOR THE PLAINTIFF'S VIOLATION OF GROUNDWATER MONITORING REGULA- TIONS. * REGION II FOUND GROUNDWATER MONITORING VIOLATIONS AT THE PLANT IN 1982 & ISSUED A CONSENT AGREEMENT. IN 1985, THE NYS DEPT OF ENVIRONMENTAL CONSERVATION DETERMINED THAT THE CO'S SAMPLING & ANALYSIS WAS INADEQUATE, MEANING THAT GROUNDWATER CONTAMINATION MIGHT HAVE GONE UNDETECTED OR UNADDRESSED, & THE STATE REFERRED THE MATTER TO EPA. REGION II NOW RECOMMENDS THAT VIOLATIONS OF THE NYS REGULATIONS BE ALLEGED IN A COUNTERCLAIM. * DEC INSPECTED THE FACILITY ON 9/12/85, & REFERRED THE MATTER TO EPA BY LETTER DATED 9/30/85. TECHNICAL SUPPORT DOCUMENTS FROM THE PROGRAM OFFICE REACHED THE REGIONAL COUNSEL'S OFFICE DEC. 1985. REFERRAL SIGNED BY REGIONAL ADMINISTRATOR ON 4/9/86. * TECHNICAL PERSONNEL: