CUSTOM INSULATION, INC. (CUSTOM) IS A RESIDENTIAL AND COM- MERCIAL INSULATING CONTRATOR LOCATED IN PINE BLUFF, AR. DURING AUGUST, 1988, CUSTOM WAS UNDER CONTRACT TO REMOVE ASBESTOS FROM THE CEILING OF THE LOBBY AT LUXORA ELEMENTARY SCHOOL IN LUXORA, ARKANSAS. * ASBESTOS IS A KNOWN ENVIRONMENTAL CARCINOGEN THAT MAY CAUSE SERIOUS IRREVERSIBLE HEALTH EFFECTS AND EVEN DEATH TO IN- DIVIDUALS EXPOSED TO ASBESTOS FIBERS. CONSEQUENTLY, AS- BESTOS HAS BEEN DESIGNATED BY THE ADMINISTRATOR AS A HAZ- ARDOUS AIR POLLUTANT AND IS COVERED UNDER SECTION 112 OF THE CAA, NESHAPS. THE REGULATIONS THAT GOVERN THE ASBESTOS NESHAP ARE CONTAINED IN 40 CFR PART 61, SUBPART M, 61.140 THROUGH 61.156. * ON AUGUST 30, 1988, THE ADPC&E CONDUCTED AN INSPECTION OF THE FACILITY DURING WHICH VIOLATIONS OF THE ASBESTOS NESHAP STANDARDS WERE DOCUMENTED. THE INSPECTOR NOTED THAT CUSTOM WORKERS FAILED TO KEEP THE FRIABLE ASBESTOS MATERIALS ADE- QUATELY WETTED UNTIL COLLECTED FOR DISPOSAL, 40 CFR 61.147 (E)(1); AND FAILED TO SEAL ASBESTOS CONTAINING WASTE MATER- IALS IN LEAK-TIGHT CONTAINERS FOR PROPER DISPOSAL, 40 CFR 61.156(B)(1)(III). FURTHER, NOTIFICATION OF AN INTENT TO RENOVATE LUXORA ELEMENTARY DURING AUGUST WAS NOT SENT TO EPA OR THE ADPC&E BEFORE THE RENOVAT