CANNELTON INDUSTRIES, INC. (CANNELTON) OWNS AND OPERATES BITUMIOUS COAL MINING OPERATIONS IN CANNELTON, W. VIRGINIA. IN MARCH 1982, DURING A MINE CLOSING OPERATION, CANNELTON RUPTURED A PCB-CONTAINING TRANSFORMER AND MOST OF THE FLUID INSIDE DRAINED ONTO THE MINE SHAFT FLOOR. TESTING OF THE FLUID REVEALED A CONCENTRATION OF 46.7% AROCLOR 1260 (A PCB TRADE NAME). THE TOTAL AMOUNT OF PCB FUILD RELEASED ITS ESTIMATED TO BE 447 GALLONS. MIGRATION OF THE PCB-CONTAMINATED MATERIAL TO ADJOINING MINE SHAFTS WOULD LIKELY INCREASE HUMAN EXPOSURE TO UNAC- CEPTABLE LEVELS. THE NEIGHBORING TOWN OF SMITHERS USES AN ADJOINING, ABANDONED MINE SHAFT AS A COLLECTION BIN FOR ITS MUNICIPAL WATER SUPPLY. NO IMMEDIATE HAZARD. IN SUBSEQUENT CONSULTATIONS WITH EPA REGIONAL COUNSEL DIANE AIL, THE COMPANY HAS AGREED TO RETRIEVE THE PCB- CONTAMINATED SHALE AND GOB MATERIAL IN APRIL 1983 AND TO PROVIDE FOR ITS PROPER DISPOSAL. THE AGENCY ISSUED AN ADMINISTRATIVE COMPLAINT ON FEBRUARY 16TH, 1983 REQUESTING A CIVIL PENALTY ASSESSMENT OF $25,000 FOR IMPROPER PCB DISPOSAL. A PERMANENT INJUNCTION REQUIRING THE COMAPNY TO RETRIEVE AND DISPOSE OF THE PCB-CONTAMINATED MATERIAL IS NECESSARY TO INSURE TIMELY CLEANUP & TO PROVIDE AN IMMEDIATE FOLLOW-UP REMEDY SHOULD THE COMPANY RENEGE ON ITS PROMISE.