The use of lignin degrading fungi for decomposition of a wide variety of xenobiotics has become an area of intensive research. One distinct advantage of lignin degrading fungi over bacteria is that they do not require preconditioning to a particular pollutant prior to transformation. This degradative ability has been attributed to a nonspecific and nonstereoselective extracellular lignin‐degrading enzymatic system (ligninase) which is induced by the fungi under nitrogen or carbon‐limiting conditions (Reid, 1979). Ligninases (lignin‐peroxidases) are responsible for the initial oxidative attack on lignin and other complex molecules via formation of a free radical thereby leading to depolymerization of complex molecular structures. Potential degradative ability of peroxidases may extend to include (1) sorbed contaminants, (2) high molecular‐weight, hydrophobic contaminants, and (3) complex mixtures of chemicals typical of a contaminated site.