ON MARCH 11, 1997, EPA REGION VII SENT TO DOJ A DIRECT REFERRAL OF A SUPERFUND COST RECOVERY ACTION IN THE AMOUNT OF $727,029, AGAINST TERRA INDUSTRIES. IN THIS REFERRAL, WE ARE SEEKING RECOVERY OF RESPONSE COSTS INCURRED BY EPA IN CONNECTION WITH THE DECEMBER 13, 1994 EXPLOSION AT THE TERRA AMMONIUM NITRATE PLANT NEAR SIOUX CITY, IOWA. EPA INCURRED COSTS IN PERFORMING EMERGENCY RESPONSE ACTIVITIES IMMEDIATELY AFTER THE EXPLOSION, AND IN CONDUCTING A SUBSEQUENT INVESTIGATION INTO THE CAUSE OF THE EXPLOSION. EPA PREVIOUSLY REFERRED TO DOJ CLAIMS AGAINST TERRA UNDER THE CLEAN AIR ACT AND EPCRA, WHICH ARISE IN CONNECTION WITH THE EXPLOSION. WE WERE UNABLE TO REFER THE CERCLA COST RECOVERY CLAIM AT THE SAME TIME AS THE OTHER CLAIMS BECAUSE THE COST DOCUMENTATION WAS UNAVAILABLE AT THE TIME OF THE PREVIOUS REFERRAL. THE CERCLA CLAIMS INVOLVE DIFFERENT PROOF THAN THE OTHER CLAIMS, AND COULD BE PURSUED SEPARATELY. HOWEVER, AS IS DISCUSSED IN DETAIL IN THE REFERRAL, WE BELIEVE THAT IT IS IN THE GOVERNMENT'S INTERESTS, FOR BOTH LEGAL AND STRATEGIC REASONS, TO PURSUE THE CERCLA COST RECOVERY CLAIMS AT THE SAME TIME WE PURSUE THE OTHER CLAIMS.