DURING THE TIME PERIOD OF FALL OR WINTER OF 1996 UNTIL FEBRUARY 1997, HPS&R CORP VIOLATED THE CWA BY DISCHARGING DREDGED OR FILL MATERIAL INTO WETLANDS WITHOUT AUTHORIZATION OF A U.S. ARMY CORPS OF ENGINEERS PERMIT. THE VIOLATION DIRECTLY IMPACTED 5.7 ACRES OF WETLANDS AND HAD THE POTENTIAL OF DRAINING 375 ACRES OF ADJACENT WETLANDS AT THE SITE. THE COE ISSUED HPS&R A CEASE AND DESIST ORDER FOR THE VIOLATIONS ON APRIL 10, 1997. IN OCTOBER 1997, THE COE REQUESTED EPA TO SERVE AS LEAD ENFORCEMENT AUTHORITY IN THIS MATTER. THIS IS EPA'S FIRST JUDICIAL WETLANDS CASE IN THE STATE OF NORTH CAROLINA. THE PRE-REFERRAL WAS SENT TO HQ AND DOJ FOR THEIR APPROVAL DURING THE WEEK OF SEPTEMBER 21, 1998. ON 11/19/99, REION IV FILED A JUDICIAL COMPLAINT AND LODGE A CONSENT DECREE AGAINST HPS&R, INC., AND ITS OFFICERS IN FEDERAL COURT IN THE EASTERN DISTRICT OF NORTH CAROLINA. THE CONSENT DECREE RESOLVES VIOLATIONS OF SECTIONS 301 AND 404 OF THE CWA AND IS THE FIRST FEDERAL JUDICIAL WETLANDS CASE IN THE STATE OF NC. UNDER THE TERMS OF THE CD, HPS&R, INC., HAS AGREED TO PAY A SETTLEMENT PACKAGE WITH A TOTAL VALUE OF $185,000. THE ACTUAL CASE PENALTY IS $85,000. 100 ACRES OF WETLANDS AT THE VIOLATION SITE WILL BE DEEDED TO THE NC WETLANDS RESTORATION PROGRAM. THE WETLANDS RESTORATION PROGRAM WILL HOLD THE LAND IN PERPETUITY SUBJECT TO THE TERMS OF A WETLANDS CONSERVATION SEP. HPS&R, INC., A NC CORP., DISCHARGED DREDGED OR FILL MATERIAL INTO WETLANDS LOCATED IN ONSLOW COUNTY, NC,