AMERICAN CYANAMID CO. ( A.C. ) OWNS & OPERATES A CHEMICAL MANUFACTURING FACILITY IN LINDEN, NJ.. THE FACILITY IS LO- CATED ON THE RAHWAY RIVER NEAR ITS CONFLUENCE WITH THE ARTHUR KILL. ON 10/6/84, A STORAGE TANK CONTAINING MALATHION ERUPTED, CAUSING MALATHION & A HEAVY VAPOR MIST CONTAINING TINY DROPLETS TO BE EMITTED INTO THE AIR, WITH THE DROPLETS FAL- LING ON THE GROUND & INTO THE RAHWAY RIVER, ITS ADJOINING SHORELINE, AND THE ARTHUR KILL. IN ADDITION, THE ERUPTION CAUSED MALATHION TO SPILL FROM THE TANK ONTO THE ADJOINING SHORELINE. IT SPILLED ONTO A TAR LOT, THEN TO A GRASSY AREA & ULTIMATELY TO THE RAHWAY RIVER AND THE ARTHUR KILL. AT THE REQUEST OF THE U.S. COAST GUARD, THIS CASE IS RE- FERRED FOR THE ASSESSMENT OF A CIVIL PENALTY FOR THE VIOLA- TION OF CWA/311 USC 1321 OR, IN THE ALTERNATIVE, FOR THE VIOLATION OF CWA/301, 33 USC 1311. IN BOTH INSTANCES, THE REGION BELIEVES THE MAXIMUM PENALTY IS WARRANTED BASED UPON THE SERIOUSNESS OF THE DISCHARGE. SINCE 1978, A.C. HAS HAD 5 KNOWN SPILLS, THE LAST ONE RESULTING IN THE PAYMENT OF A $20,000 PENALTY. MOREOVER, THE OCT. 6TH MALATHION ERUPTION CAUSED OVER 100 PEOPLE TO SEEK MEDICAL ATTENTION AT LOCAL HOSPITALS.