AMERICAN CREOSOTE WORKS IS AN INACTIVE WOOD TREATMENT FACILITY LOCATED IN A DENSELY POPULATED RESIDENTIAL/COM- MERCIAL AREA OF URBAN PENSACOLA, FL. APPROXIMATELY 1/4 MILE NORTH OF PENSACOLA BAY. THE FACILITY HAS BEEN TREATING WOOD WITH CREOSOTE AND PCP SINCE THE EARLY 1900'S AND HAS DISCHARED PCP-CONTAMINATED WASTEWATER INTO TWO UNLINED 80,000 GALLON PERCOLATION PONDS. IN 2/81, THE US GEOLOGICAL SURVEY (USGS) INITIATED A GROUNDWATER QUALITY SURVEY IN THE PENSACOLA AREA WHICH INDICATED THE PRESENCE OF PHENOLS IN THE GROUNDWATER ASSOCIATED W/AMERICAN CREOSOTE WORKS. PRELIM DATA SUGGESTED THE PRESENCE OF A ZONE OF CONTAMINATION IN THE GROUNDWTR THAT EXTENDED FROM THE SITE 800 FEET SOUTHWARD TOWARD PENSACOLA BAY. BECAUSE NO POTABLE WATER SUPPLY WELLS ARE LOCATED W/I THE KNOWN AREA OF GROUNDWATER CONTAMINATION OR IN ITS SOUTHWARD PATH, NO APPARENT IMMEDIATE THREAT TO HUMAN HEALTH IS ASSUMED TO EXIST. HOWEVER, GROUNDWATER MONITORING BY THE USGS IS CONTINUING. THE FLA. DEPT OF ENVIRONMENTAL REGULATION HAS NEGOTIATED A CONSENT ORDER W/AMERICAN CREOSOTE WORKS REQUIRING THE CONST OF AN UPGRADED WASTEWATER TREATMENT SYSTEM, THE RESTORATION OF PAST & PRESENT DISCHARGE AREAS, & THE INSTALLATION OF ON-SITE MONITORING WELLS. THE SITE IS ON THE PROPOSED NPL.