NATURE OF THE CASE: ON 7/10/81, A CHEMICAL FIRE & EXPLOSION, REPORTEDLY THE RESULT OF A FIRE BOMB, DESTROYED APPROX 12,000 OF THE 18,000 DRUMS STORED AT THE GENERAL DISPOSAL CO'S 1-ACRE SITE IN THE METROPOLITAN LOS ANGELAS COMMUNITY OF SANTA FE SPRINGS. THE DRUMS CONTAINED PAINT COMPONENTS, INDUST- RIAL SOLVENTS & PESTICIDES, INCLUDING SOME 25 HAZ SUB- STANCES. CONTAMINATED WATER FROM THE FIRE-FIGHTING FLOWED THROUGH THE RESIDENTIAL NEIGHBORHOOD, CAUSED A MAJOR FISH KILL IN A NEARBY CREEK & RESULTED IN THE CLOSURE FOR SEV- ERAL DAYS OF SEAL BEACH ON THE PACIFIC OCEAN. SOME 57 POTENTIALLY RESPONSIBLE PARTIES HAVE BEEN IDENTIFIED & GIVEN NOTICE OF THEIR POTENTIAL LIABILITY. PROMINENT IN THAT LIST HAVE BEEN SITE OPERATOR, THE CURRENT SITE OWNER , THE ORIGINAL SITE OWNER & 54 GENERATORS OF HAZ SUBSTAN- CES. THERE WILL BE A CULLING OF THOSE GENERATORS BASED UPON QUALIFICATION OF THE EVIDENCE AGAINST THEM. A STTL- MNT HAS BEEN EXECUTED ALREADY W/INMONT CORP. INMONT WAS THE PRINCIPAL GENERATOR RESPONSIBLE FOR 75 TO 90% OF THE DRUMS ON SITE. ON 7/11/81, AT THE STATE'S REQUEST, EPA APPROVED AN EMERGENCY EXPENDITURE OF $25,000 OF CWA SEC 311 MONEY TO BEGIN EMERGENCY RESPONSE ACTIVITIES. ACTIVITIES INCLUDED CONTAINMENT OF CONTAMINATED FIRE-FIGHTING WATER, RECOVERY DRUMS & DEBRIS BLOWN OFF-SITE & SOME S