ON JUNE 30, 1994, REGION III SENT A REFERRAL TO THE DEPT. OF JUSTICE REQUESTING THE FILING OF A CIVIL ACTION AGAINST PEPCO LOCATED IN CHARLES COUNTY, MD, FOR VIOLATION OF SECTION 301 OF CWA. THIS ACTION AROSE AS A RESULT OF CRIMINAL CONDUCT ON THE PART OF A PEPCO EMPLOYEE WHO, UNBEKNOWNST TO CORPORATE OFFICIALS, SYSTEMATICALLY BYPASSED THE SITES NPDES PERMITTED PROCESS FOR DEALING WITH RUNOFF FROM THE FLY-ASH FACILITY AND DUMPED WASTEWATER INTO ADJACENT AREA THAT LED TO WETLANDS. CRIMINAL GUILTY PLEAS HAVE BEEN OBTAINED FROM THE CULPABLE INDIVIDUALS. PEPCO CORPORATE OFFICIALS NOTIFIED THE APPROPRIATE GOVERNMENT OFFICIALS WHEN THEY BECAME AWARE OF THE CRIMINAL CONDUCT AND THEY HAVE BEEN COOPERATIVE IN RESOLVING THE CRIMINAL ASPECTS OF THIS MATTER. THIS REFERRAL SEEKS A CIVIL PENALTY TO RESOLVE ANY OUTSTANDING VIOLATIONS BY THE CORPORATION ARISING OUT OF THE CRIMINAL CONDUCT.