FAILURE TO REPORT HAZARDOUS CHEMICALS UNDER EPCRA. AN INSPECTION WAS CONDUCTED AT THIS FACILITY ON APRIL 30, 1998. THE INSPECTION REVEALED THE STORAGE OF SIX HAZARDOUS SUBSTANCES, INCLUDING THREE EXTREMELY HAZARDOUS SUBSTANCES GREATER THAN THE THRESHOLD QUANTITIES. THE FACILITY WAS REQUIRED TO SUBMIT A TIER II FORM INCLUDING ALL HAZARDOUS SUBSTANCES PURSUANT TO EPCRA SECTION 312 EACH YEAR ON THE FIRST OF MARCH. THE INSPECTION FOUND THAT THE FACILITY HAD NOT SUBMITTED TIER II FORMS FOR 1995, 1996, AND 1997 CALENDAR YEARS. USEPA ASSESSED A $90,450 PENALTY. DURING NEGOTIATIONS THE FACILITY ADVISED US OF A FINANCIAL SITUAT- ION WE WERE NOT AWARE OF. THEY SUBMITTED THE LAST THREE YEARS OF TAX RETURNS FOR REVIEW. BASED ON THE FINANCIAL ANALYSIS DONE BY REGION 5, IT WAS DETERMINED THAT THIS FACILITY DID NOT HAVE THE ABILITY TO PAY ANY PENALTY AT ALL.