RECOMMENDATION OF FILING OF A COST RECOVERY ACTION UNDER CERCLA 107A AGAINST ONE DEFENDANT FOR APPROXIMATELY $105,000 OUT OF APPROXIMATELY $372,000 IN PAST COSTS INCURRED BY EPA FOR A REMOVAL ACTION AT PAYNE CUTLERY SUPERFUND SITE IN NEW BEDFORD, MA. IF A COMPLAINT IS NOT FILED BY JUNE 26, 1997 THE UNITED STATES RUNS THE RISK OF RECOVERY OF PAST COSTS BEING BARRED BY A STATUTE OF LIMITA- TIONS. THE PROPOSED DEFENDANT IS CAPE CHEM CORPORATION, DBA ERIE CHEMICAL SALES, WHO IS THE ONE REMAINING VIABLE PRP. THE SITE WAS ESSENTIALLY AN UNSAFE WAREHOUSE BUILDING IN WHICH INCOMPATIBLE DETERIORATING AND DAMAGED DRUMS AND PACKAGES CONTAINING HAZARDOUS SUBSTANCES WERE STORED. AFTER AN INITIAL SITE INVESTIGATION, AN ACTION MEMORANDUM WAS SIGNED BY THE REGIONAL ADMINISTRATOR ON DECEMBER 9, 1992. LATER, ON DECEMBER 21, 1992 THE RA SIGNED THE UNILATERAL ADMINISTRATIVE ORDER COMPELLING FIVE PARTIES, INCLUDING THE PROPOSED DEFENDANT, TO PERFORM REMOVAL ACTIVITIES. AFTER ERIE AGREED TO COMPLY WITH THE UAO WHILE THE OTHER PARTIES CLAIMED AN INABILITY TO FINANCE THE REMOVAL, THE RESPONSE ACTION WAS CONDUCTED IN TWO PHASES. PHASE I WAS AN EPA-LEAD REMOVAL OF ALL THE HAZARDOUS SUBSTANCES NOT ASSOCIATED WITH ERIE. PHASE II WAS A PRP-LEAD ACTION BY ERIE WITH EPA OVERSIGHT. IN PERFORMING THE CLEANUP OF THE REMOVAL, THE PROPOSED DEFENDANT'S CONDUCT--INCLUDING ITS FAILURE TO PROPERLY RETAIN A COMPE