CSX OIL & GAS CORP. OPERATES A NATURAL GAS PROCESSING FACILITY NEAR EUNICE, LOUISIANA. FOUR TURBINES WERE IN- STALLED AND BEGAN OPERATING ON SEPT. 5,1985. ON MARCH 31, 1987, THE LOUISIANA DEPARTMENT OF ENVIRONMENTAL QUALITY SENT CSX A LETTER REQUESTING SPECIFIC INFORMATION TO DETER- MINE WHETHER OR NOT CSX'S TURBINES WERE SUBJECT TO NSPS, SUBPART KKK. BY LETTER DATED MAY 8, 1987, CSX RESPONDED TO LDEQ INDICATING THAT IT HAD MISTAKENLY ASSUMED THAT SUBPART KKK DID NOT APPLY TO THE TURBINES. SINCE THE STATE OF LOUISIANA HAS NOT YET ADOPATED NSPS REGULATIONS COVERING SUBPART KKK, THE CASE WAS REFERRED TO EPA FOR PROPER ENFORCEMENT ACTION ON AUGUST 18.1987. ACCO- RDING TO EPA POLICY, A COMPANY IS DEEMED A SIGNIFICANT VIOLATOR IF IT FAILS TO MEET THE NSPS REQUIREMENTS AND A MONETARY PENALTY SHOULD BE COLLECTED FROM THE VIOLATOR. ON SEPTEMBER 4, 1987, REGION VI ISSUED CSX A LETTER OF VIOLATION (LOV) AND THE PARTIES MET ON SEPTEMBER 24, 1987. SETTLEMENTDISCUSSIONS HAVE COMMENCED AND CSX APPEARSTO BE WILLING TO ENTER INTO A CONSENT DECREE RESOLVING ITS VIO- LATIONS. THE COMPANY HIRED A CONTRACTOR TO PERFORM THE TESTING REQUIRED UNDER SUBPART KKK AND HAS SUBMITTED ITS INITIAL SEMI-ANNUAL REPORT.