NATURE OF THE CASE: THE POTTER'S PITS SITE IS LOCATED IN MACO, BRUNSWICK COUNTY, NORTH CAROLINA. FROM 1969 TO 1976, OTTO SKIPPER USED THE SITE FOR THE DISPOSAL OF WASTE OIL OBTAINED BY HIS OIL SPILL CLEANUP BUSINESS. THE WASTES WERE CONTAINED IN FOUR UNLINED SURFACE IMPOUNDMENTS. THE BUSINESS CEASED OPERATING IN 1976. IN THAT YEAR, THE U.S. COAST GUARD PERFORMED A PARTIAL CLEANUP OF THE SITE. TWO OF THE IMPOUNDMENTS WERE EMPTIED AND CONTAMINATED SOIL REMOVED, WHILE SAND WAS MIXED WITH THE CONTENTS OF THE TWO OTHER IMPOUNDMENTS TO SOLIDIFY THE MATERIAL. BETWEEN 1976 AND 1982 OWNERSHIP TO THE PROPERTY CHANGED SEVERAL TIMES. IN 1982 IT WAS SOLD TO THE CURRENT OWNERS FOR RESIDENTIAL USE; THEY QUICKLY DISCOVERED THAT OIL AND SLUDGE WERE BURIED IN THEIR FRONT YARD AND THAT THEIR WELL WATER WAS CONTAMINATED. IN SEPTEMBER 1983, EPA INVESTIGATED THE SITE AND FOUND THAT THE SOIL AND GROUNDWATER WERE CONTAMINATED WITH OIL, CREOSOTE, AND SEPTIC SLUDGES, AS WELL AS SEVERAL ORGANIC CHEMICALS. THE WELL WATER WAS FOUND TO CONTAIN BENZENE CONCENTRATIONS IN EXCESS OF EPA WATER QUALITY CRITERIA. CONSEQUENTLY, EPA COMMENCED AN IMMEDIATE REMOVAL ACTION AT THE SITE ON MARCH 24, 1984. THREE FAMILIES WERE TEMPORARILY RELOCATED. THE TWO IMPOUNDMENTS CONTAINING WASTES WERE EXCAVATED, AND THE CONTAMINATED MATERIAL WAS REMOVED AND SENT TO AN APPROVED DISPOSAL FACILITY. THE IMPOUNDMENTS WERE THEN FILLED WITH UNCONTAMINATED SOIL. REMOVAL ACTIVITIES WERE COMPLETED ON APRIL 3, 1984. TOTAL COS