THIS IS A REFERRAL UNDER CERCLA SECTION 107 FOR THE RECOUPME NT OF FUND MONIES EXPENDED THROUGH JANUARY 31, 1993, AT THE PAGANO SALVAGE YARD SITE IN LOS LUNAS, NEW MEXICO. THROUGH THAT DATE, A TOTAL OF $2,502,632.09 PLUS INTEREST WAS SPENT ON RESPONSE MEASURES UNDERTAKEN AT PAGANO SALVAGE. THE EPA ADDITIONALLY SEEKS A DECLARATORY JUDGMENT UNDER SEC. 113(G)( 2) OF CERCLA FOR LIABILITY WITH REGARD TO ALL COSTS INCURRED AT THE SITE. PAGANO SALVAGE IS LOCATED BETWEEN EDEAL ROAD AND THE PERALTA RIVERSIDE DRAIN, ABOUT ONE MILE SOUTHEAST OF THE CITY OF LO S LUNAS, NEW MEXICO. THE PERALTA DRAIN CONVERGES WITH THE O TERO DRAIN APPROXIMATELY 1.5 MILES NORTH OF THE PAGANO SITE. LOST LUNAS IS LOCATED SOUTH OF ALBUQUERQUE, NEW MEXICO. T HE PERALTA DRAIN IS THE INTERIOR DRAINAGE PATHWAY FOR THE EA ST FLOOD CONTROL LEVEE OF THE RIO GRANDE RIVER. THE PERALTA DRAIN IS USED FOR IRRIGATION, LIVESTOCK WATERING AND SPORT FISHING. SPECIES OF FISH CAUGHT FROM THE PERALTA DRAIN INCLUDE CHANNEL CAT, WHITE SUCKER, AND RAINBOW TROUT. THE SALVAGE YD IS BORDERED BY THE PERALTA DRAIN ON THE WEST, AND IRRIGATION RETURN FLOW DITCH ON THE SOUTH, EDEAL ROAD ON TH E EAST AND A LIVESTOCK PASTURE ON THE NORTH. SITE DRAINAGE FLOWS SOUTHWEST, INTO THE PERALTA DRAIN. THE SITE IS AN ACTIVE FACILITY THAT SPECIALIZES IN HIGH TEC H SALVAGE MATERIALS SUCH AS DISCARDED COMPUTERS AND LABORAT ORY EQUIPMENT. MUCH OF THIS EQUIPME