DESCRIPTION OF DEFENDANTS' BUSINESS AND ENVIRON. VIOLATION SIMPSON PAPER COMPANY MANUFACTURES PULP BY THE KRAFT PROCESS AT SAMOA, CA. CHIPS ARE IMPORTED TO THE MILL FROM VARIOUS LUMBER MILLS IN NORTHERN CA. THE KRAFT PROCESS REQUI RES THAT LIGNINS BE REMOVED FROM THE WOOD CHIPS BEFORE THE FIBERS ARE USED IN THE PULP MAKING PROCESS. THIS IS ACCOMP- LISHED BY TREATMENT WITH SODIUM HYDROXIDE. ON MARCH 1, 1984, AT ABOUT 1:30 P.M., CAUSTIC SODA WAS BEING DISCHARGED FROM THE BARGE T/B PENNWALT TOTEM TO AN ONSHORE TANK OWNED BY SIMPSON. THE TRANSFER WAS BEING CONDUC TED BY SIMPSON PERSONNEL AND SIMPSON IS RESPONSIBLE FOR THE OPERATION. THE CREW FAILED TO PROPERLY ADJUST VALVES ON THE BARGE SO THAT 50% SOLUTION OF SODIUM HYDROXIDE FLOWED OUT OF THE MANHOLE COVERS ONTO THE DECK AND OVER THE STARBORD SIDE OF THE BARGE INTO EUREKA HARBOR. THE SPILL AMOUNTED TO 10,900 GALLONS. THE SPILL WAS DISCOVERED BY SHORE PERSONNEL AT ABOUT 3:30 P.M. CLEANUP WAS NOT FEASIBLE DUE TO THE TIME ELAPSED SINCE THE SPILL, THE SOLUBILITY IN WATER OF SODIUM HYDROXIDE AND THE RAPIDLY EBBING TIDE. EIGHT DAYS LATER, ON MARCH 9, 1984, BIOLOGISTS FROM THE CA DEPT. OF FISH AND GAME MADE DIVES IN THE VICINITY OF THE SPILL TO DETERMINE WHETHER THER E WAS ANY EFFECT ON MARINE LIFE. THE REPORT STATES THAT THE EFFECT IS DIFFICULT TO QUANTITATIVELY ASSESS, BUT THAT THERE WAS AN ADVERSE EFFECT ON MARINE LIFE