OVER A PERIOD OF YEARS ELECTRICAL UTILITIES CO. USED POLYCHLORINATED BIPHENYL (PCB) IN ITS MANUFACTURE OF CAPA- CITORS. PCB'S CURRENTLY EXIST IN THE BUILDINGS AND LAND SURROUNDING THE SITE, INCLUDING ADJACENT LANDOWNERS' PROPERTIES. THERE ARE ALSO 140 BARRELS OF PCB-CONTAMINATED MATERIAL PRESENTLY STORED ON THE SITE. IN 1980 EUC MOVED IT S MANUFACTURING PROCESS FROM THE LA SALLE SITE TO FARMVILLE NORTH CAROLINA. PRIOR TO THAT TIME BOTH THE STATE OF ILLINOIS AND REGION V FILED ACTIONS AGAINST EUC FOR VIOLA- TIONS OF TSCA. IN JULY 1983 REGION V NOTIFIED EUC OF THE NEED FOR AN IMMEDIATE REMOVAL AT THE LA SALLE SITE. THE COMPANY REFUSED TO DO THE WORK AND ON SEPTEMBER 19, 1983, FILED A CHAPTER 11 BANKRUPTCY PETITION IN THE BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA. WE HAVE DETERMINED THAT ASSETS OF $40,000 TO $280,000 EXCLUSIVE OF ANY SECURITY INTEREST MAY BE AVAILABLE FOR ADMINISTRATIVE EXPENSES. IN ADDITION, WE HAVE MADE ARGU- MENTS IN THE PAST THAT CERCLA CLEANUP COSTS SHOULD HAVE PRIORITY OVER SECURITY INTERESTS. IF THAT ARGUMENT SHOULD PREVAIL, ASSETS OF APPROXIMATELY $1,000,000 WOULD BE AVAIL- ABLE FOR CERCLA CLEANUP COSTS. BOTH THE STATE OF ILLINOIS AND THE NORTH CAROLINA DEPART- MENT OF NATURAL RESOURCES HAVE FILED CLAIMS FOR THE COSTS OF CLEANUP AND DISPOSAL OF HAZARDOUS WASTE AT THE LA SALLE SITE AND THE NORTH CAROLINA SITE, RESPECTIV