THE U.S. EPA UNDERTOOK A COMPLIANCE EVALUATION INSPECTION AT BURNS HARBOR ON MARCH 13, 1995, WHICH UNCOVERED A NUMBER OF VIOLATIONS OF MHC'S NPDES PERMIT. THESES VIOLATIONS BECAME THE SBUJECT OF A FINDINGS OF VIOLATIONS AND COMPLIANCE ORDER THAT WAS ISSUED TO BURNS HARBOR ON SEPTEMBER 29,1995. DESP ITE ASSURANCES BY MHC IN CORRESPONDENCE IN MEETINS WITH U.S. EPA, MHC HAS TO HTIS DAY BEEN UNABLE TO COME INTO COMPLIANC E WITH THE PERMIT'S EFFLUENT LIMITATIONS. U.S.EPA BELIEVES THAT THE ONLY WAY TO ASSURE THAT MHC WILL COME INTO COMPLIAN CE WITH ITS PERMIT IS TO ADDITIONAL REMEDIAL ACTIONS OUTLINE D IN THE REFERRAL. IN ADDITION, BURNS HARBOR SHOULD PAY A C IVIL PENALTY IN EXCESS OF $242,000.