The Environmental Protection Agency said it will burn dioxin-contaminated sediments of the famous Love Canal chemical dump site in Niagara Falls, N.Y., and spread the resulting "clean dirt" on top of the ground. The agency believes its mobile, high-temperature incinerator can destroy 99.99% of the dioxin in about 25,000 to 40,000 cubic yards of sediment. The 3,000-foot canal was used by Hooker Chemical Co. to dump 21,800 tons of toxic waste from 1942 to 1952. The site was transferred to the city school board, and homes built there over the years. Since 1978, the canal waste has been managed by a leachate collection and treatment system and a clay cap that has been expanded to cover 40 acres.