THIS IS A PROPOSED LETTER AGAINST THE CSX TRANSPORTATION INC. UNDER CER SEC 107 TO RECOVER PAST COSTS & TO ESTABLISH LIABILITY AS TO FUTURE COSTS TO BE INCURRED UNDER SEC 104. THE CASE INVOLVES A BENZENE SPILL FROM A TRAIN DERAILMENT BY THE CSX TRANSPORTATION INC. IN 1965 (THEN KNOWN AS THE L & N RAILROAD) THE SPILL OCCURED & THE SITE IS LOCATED AT APPROX. 200-300 YARDS EAST OF STATE PONDS 47 & 61 IN PERDIDO, BALDWIN COUNTY, AL. EPA & THE AL DEPT OF SOLID & HAZARDOUS WASTE (ADSHW) CONDUCTED GROUNDWATER SAMPLING IN SEPTEMBER 1982 OF DOMESTIC WATER WELLS IN PERDIDO & FOUND BENZENE CONTAMINATION. EPA TO DATE HAS INCURRED RESONSE COSTS AMOUNTING TO $721,048.77. DEMAND LETTER WAS SENT TO CSX TRANSPORTATION, INC. ON MAY 25, 1989. CSX IS SOLE PRP. GENERAL NOTICE WAS SENT ON FEBRUARY 1, 1983.