A Device entry (positions 40 - 46) of SPECIAL requires that positions 54 - 59 contain the name of a user-supplied routine. This conflicts with what is valid in the same positions for a Continuation File Specification. Position 53 defaults to blank.
Remove the K in position 53 or do not specify SPECIAL in the Device entry (positions 40 - 46). Compile again.
(C) Copyright IBM Corporation 1992, 2005. All Rights Reserved.