THE REFERRAL RECOMMENDS THAT DOJ INITIATE LITIGATION UNDER SECTION 107 OF CERCLA ON BEHALF OF EPA TO RECOVER APPROXIMATELY $17 MILLION IN PAST RESPONSE COSTS AND TO SEEK A DECLARATORY JUDGMENT UNDER 28 U.S.C. SECTION 2201 REGARDING THE LIABILITY FOR FUTURE RESPONSE COSTS IN CONNECTION WITH THE NORTH HOLLYWOOD OPERABLE UNIT AT THE SAN FERNANDO VALLEY AREA 1 NPL SITE (NHOU SITE). THE PROPOSED DEFENDANTS ARE THE CURRENT OWNER AND OPERATORS OF SIX FACILITIES WITHIN THE CLEANUP ZONE OF THE NHOU SITE. EPA IS ALSO CONSIDERING ADDING A CLAIM FOR INJUNCTIVE RELIEF AND CIVIL PENALTIES FOR THE FAILURE OF ONE OF THESE PROPOSED DEFENDANTS, ALLIED-SIGNAL INC., TO PROVIDE TAX RETURNS AS REQUESTED UNDER THE AUTHORITY OF SECTION 104(E) OF CERCLA. THE NHOU SITE IS ONE OF FIVE OPERABLE UNITS WITHIN THE EASTERN HALF OF THE SAN FERNANDO VALLEY BASIN IN LOS ANGELES COUNTY, CALIFORNIA. YEARS OF UNSOUND AND UNREGULA- TED CHEMICAL HANDLING AND DISPOSAL PRACTICES HAS LED TO MASSIVE GROUNDWATER CONTAMINATION AND THE CLOSURE OF NUMEROUS PRODUCTION WELLS. ACCORDING TO RECENT GROUNDWATER MONITORING DATA, THE PLUME OF CONTAMINATION FROM TCE EXTENDS OVER AN 11 MILE AREA AND SPREADS OUT ALMOST 3 MILES AT ITS GREATEST WIDTH. CONCENTRATIONS AS HIGH AS 340,000 PPB OF TCE HAVE BEEN DETECTED IN THE BASIN (68,000 TIMES THE FEDERAL MCL OF 5 PPB FOR TCE