A. BACKGROUND ON JUNE 28, 1988, THE REGION DIRECTLY REFERRED A REQUEST TO FILE ON BEHALF OF THE U.S.EPA AN APPLICATION FOR REIMBURSE- MENT OF ADMINISTRATIVE EXPENSE REGARDING THR PADGETT CHAPTER 11 BANKRUPTCY PROCEEDING. THE OFFICE OF ENFORCEMENT AND COM PLIANCE MONITORING (OECM) CONCURRED IN THE REFERRAL, AND THE DEPT. OF JUSTICE (DOJ) BEGAN WORK ON IT. DOJ REQUESTED THAT THE REGION FURTHER CLARIFY THE COST DOCUMENTATION TO BE USED IN FILING THE CLAIM. THE REGION PROVIDED THAT INFORMATION, AND THE REGION, OECM AND DOJ WERE PROCEEDING TO PREPARE THE CLAIM FOR ADMINISTRATIVE EXPENSE. HOWEVER, ON JANUARY 19, 1989, THE BANKRUPTCY PROCEEDING WAS CONVERTED FROM CHAPTER 11 TO CHAPTER 7. THIS PROMPTED RE-EXAMINATION OF THE ORIGIN- AL REFERRAL. ACCORDING TO THE AMENDED DEBTORS' DISCLOSURE STATEMENT, THE PROPERTY AT 1716 KELLER AVE. (THE TRI-STATE PLATING SITE) WAS VALUED AT $500,000. HOWEVER, THE ACTUAL VALUE OF THE PROPERTY WAS APPROX. $30,000, LESS LIENS AND OTHER INDEBTEDNESS FAR IN EXCESS OF THE PROPERTY'S REAL WORTH. THEREFORE THE LITIGATION TEAM DECIDED IT WOULD NOT BE A WISE USE OF THE UNITED STATES' RESOURCES TO PROCEED WITH AN APPLICATION FOR REIMBURSEMENT OF ADMINISTRATIVE EXPENSES. THE AMOUNT OF MONEY TO BE GAINED FROM SUCH AN EXERCISE WOULD BE SMALLER THAN THE VALUE OF THE ATTORNEY TIME SPENT PURSUING EITHER MOTION. THE REGION REQUESTED THAT THESE MOTIONS NOT BE PURSUED.