OES INITIATED A PROCESS OF PRE-NETOTIATION IN THIS CASE BECAUSE IT WAS EVIDENT, BASED ON FINANCIAL INFORMATION AVAILABLE TO THE CASE TEAM, THAT THE ASSESSED PENALTY OF $271,000, COULD POTENTIALLY BANKRUPT THE COMPANY. DURING PRE NEGOTIATION, THE COMPANY PROVIDED DETAILED FINANCIAL INFORMATION. THE FINANCIAL INFORMATION WAS ANALYZED BY A CONSULTANT AND PROVED THAT THE FACILITY HAD AN INABILITY TO PAY THE PROPOSED PENALTY AND COULD ONLY PAY IN THE RANGE OF $2000-$6000 OR POTENTIALLY HIGHER. PRE-NEGOTIATIONS WERE SUCCESSFUL AND THE COMPANY AGREED TO PAY A PENALTY OF $10,000 TO SETTLE THE ACTION. THE FACILITY WAS TARGETED BY OES'S INDUSTRIAL SECTOR TEAM AS A METAL FINISHING FACILITY MULTI-MEDIAL INSPECTION CANDIDATE. BASED ON INFORMATION REGARDING THE OPERATIONS PERFORMED AT THE FACILITY, IT WAS SUSPECTED THAT THE FACILITY MAY BE A NON-NOTIFIER UNDER RCRA THE RCRA COMPLAINT ALLEGES VIOLATIONS BASED ON OBSERVATIONS DURING THE RCRA INSPECTION ON 6/24/97. THE MOST SIGNIFICANT COUNT IS FOR ILLEGALLY STORING HAZARDOUS WASTES W/O PERMIT FROM 1993 TO 1997. THE RCRA COMPLAINT ALSO ALLEGES VILOATION OF REQUIREMENTS THAT FLOW FROM THE PERMIT REQUIREMENT AND THAT ARE CRITICAL TO THE SAFE MANAGEMENT OF HAZARDOUS WASTE. FINALLY THE COMPLAINT ALLEGES THAT SPENCER VIOLATED RCRA'S LAND DISPOSAL RESTRICTIONS BY A)STORING HAZARDOUS WASTE FOR MORE THAN ONE YEAR, AND B) FAILING TO ADEQUATELY LABEL WASTE CONTAINERS.