THIS REFERRAL RECOMMENDS THAT A CLAIM BE FILED WITH THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF CONNECTICUT (BANKRUPTCY COURT) IN THE CHAPTER 7 OF THE BANKRUPTCY CODE (11 U.S.C. SECTION 101) PROCEEDING. THE CLAIM RELATES TO RECOVERY TO SUCH CIVIL PENALTIES AND COSTS AS MAY ARISE FROM THE CIVIL JUDICIAL ACTION FILED AGAINST THE COMPANY ON DECEMBER 13, 1991, IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF PUERTO RICO. IN THAT ACTION, UNITED STATES VS. AROCHEM INTERNATIONAL, INC., CIV NO. 91-2549-CC, INITIATED PURSUANT TO SECTION 309 OF THE CLEAN WATER ACT, 33 U.S.C. SECTION 1319, THE GOVERNMENT HAS ALLEGED THAT AROCHEM VIOLATED SECTION 402 OF THE ACT, DURING THE PERIOD OF 1988 TO 1992. A CONSENT DECREE BE- TWEEN AROCHEM AND THE UNITED STATES WAS FILED CONTEMPOR- ANEOUSLY WITH THE COMPLAINT. THE INTERVENING BANKRUPTCY ACTION HAS PREVENTED THE COURT FROM TIMELY ENTERING THIS DECREE. AROCHEM HAS NOT OPERATED AT ITS PENUELAS SITE SINCE ITS CREDITORS FILED INVOLUNTARY PETITIONS FOR RELIEF PURSUANT TO CHAPTER 11 OF THE BANKRUPCTY CODE ON FEBRUARY 14, 1992. ON AUGUST 7, 1992, AROCHEM AND ITS CREDITORS FILED AN ORDER IN THE BANKRUPTCY COURT CONVERTING THE AROCHEM CASES FROM CASES UNDER CHAPTER 11 OF THE BANKRUPTCY CODE TO CASES UNDER CHAPTER 7 OF THE BANKRUPTCY CODE. THE ENVIRONMENTAL VIOLATIONS ALLEGED IN THE CIVIL JUDICI