THIS IS A REFERRAL OF AN APPLICATION FOR REIMBURSEMENT OF ADMINISTRATIVE EXPENSES IN A CHAPTER 11 BANKRUPTCY PRO- CEEDING. THE DEBTOR-IN-POSSESSION, H. KRAMER & CO. ( KRA- MER ) OWNS PROPERTY LOCATED AT 1 CHAPMAN WAY IN EL SEGUNDO, CALIFORNIA. THE FACILITY IS CONTAMINATED WITH HIGH LEVELS OF LEAD, COPPER, ZINC, ARSENIC AND OTHER HAZ SUBSTANCES. EPA HAS EXPENEDED APPROXIMATELY $49,000 ON REMOVAL ACTIVITIES AT THE SITE. BECAUSE THE BANKRUPTCY COURT SET A BAR DATE OF DECEMBER 15, 1988 FOR THE FILING OF CLAIMS AGAINST THE DEBTOR'S ESTATE, EPA HAS BROUGHT THIS APPLICATION FOR REIMBURSEMENT OF ADMINISTRATIVE EXPENSES AND, IN THE ALTERNATIVE, A PETITION FOR CLAIM, TO RECOVER ITS RESPONSE COSTS UNDER CERCLA SECTION 107(A). ADMINISTRATIVE EXPENSES ARE ENTITLED TO PRIORITY, PURSUANT TO SECTIONS 503 AND 507 OF THE BANKRUPTCY CODE. THE FACILITY IS NOT LISTED ON THE NPL. IN FEBRUARY OF 1988, EPA WAS CONTACTED BY THE LOS ANGELES COUNTY DEPARTMENT OF HEALTH SERVICES REGARDING THE ENVIRONMENTAL AND HEALTH STATUS OF THE SITE. EPA CONDUCTED SAMPLING AT THE SITE AND ISSUED A UNILATERAL ENFORCEMENT ORDER PURSUANT TO CERCLA SECTION 106. A SHORT-TERM SALVAGING PLAN HAS BEEN APPROVED BY EPA, BUT A LONG-TERM CLEAN UP PLAN SUBMITTED BY KRAMER WAS REJECTED BY EPA. EPA IS CONTINUING TO WORK WITH KRAMER TO FIND A SOLUTION TO THE PROBLEMS POSED BY THE FAC