LITIGATION REFERRAL FOR A DECLARATORY JUDGMENT ACTION UNDER SECTION 107 OF CERCLA. ACTION SEEKS A DECLARATORY JUDGMENT THAT ALUMAX AND ACR ARE RESPONSIBLE FOR COSTS INCURRED WITH RESPECT TO THE COLBERT LANDFILL SUPERFUND SITE. EPA HAS OBLIGATED $1.4 MILLION IN MIXED FUNDING COSTS TO BE EXPENDED FOR THE CLEAN UP OF THE COLBERT LANDFILL SITE. THIS COST RECOVERY ACTION FOLLOWS A 1988 REFERRAL REGARDING THE COLBERT LANDFILL WHICH RESULTED IN THE FOLLOWING AGREEMENTS: 1) A CONSENT DECREE WITH KEY TRONIC CORP TO PAY 4.2 MILLION DOLLARS TOWARDS CLEAN UP WND WITH SPOKANE COUNTY TO IMPLEMENT THE DESIGN, CONSTRUCTION AND OPERATION OF THE REMEDY AND PAY A PERCENTAGE OF RESPONSE COSTS AS WELL AS OVERSIGHT COSTS; 2) AN ADMINISTRATIVE ORDER ON CONSENT AND INTERAGENCY AGREEMENT WITH THE U.S. AIR FORCE TO PAY 1.4 MILLION DOLLARS TOWARDS CLEAN UP; 3) AN U.S. EPA COMMITMENT TO REIMBURSE SPOKANE COUNTY FOR UP TO 1.4 MILLION DOLLARS PURSUANT TO U.S. EPA'S MIXED FUNDING AUTHORITY. THE ABOVE AGREEMENTS RESULTED FROM A REFERRAL FROM THIS OFFICE TO DOJ ON 9/29/88. PURSUANT TO THESE AGREEMENTS, THE LIABILITY OF THE U.S. AIR FORCE, SPOKANE COUNTY AND KEY TRONICS HAS BEEN RESOLVED. HOWEVER, TWO NON-SETTLING PRP'S (ACR AND ALUMAX) ARE AVAILABLE FOR RECOVERY OF THE U.S. EPA'S MIXED FUNDING COSTS.