DESCRIPTION OF FACILITY AND BUSINESS: THE SERVICE HARDWARE AND DRILLING COMPANY (HEREINAFTER SHADCO), IS A SOLE PROPRIETORSHIP ENGAGED IN THE BUSINESS OF OPERATING AND SERVICING OIL WELL PROPERTIES. ONE OF THESE PROPERTIES IS AN OIL PRODUCTION WELL ON THE ZETA REED LEASE IN THE SW 1/4, SE/1/4, SEC. 28, T6S, R32E, MPM, BIG HORN COUNTY, MONTANA. APPROXIMATELY 70 GPM OF WASTEWATER IS PRODUCED FROM THE OPERATION OF A TREATER/SEPARATOR WHICH SEPARATES THE WATER FROM THE OIL THAT IS PRODUCED BY THIS FACILITY. VIOLATIVE CONDUCT SECTION 301 OF THE CLEAN WATER ACT (CWA), 33 U.S.C. SECTION 1311(A), (THE ACT ), PROHIBITS THE DISCHARGE OF POLLUTANTS INTO WATERS OF THE UNITED STATES, EXCEPT FOR UNDER CERTAIN STRICTLY CONTROLLED CONDITIONS. ON MARCH 2, 1984, MR. ROBERT FOX, AND ENVIRONMENTAL ENGINEER WITH THE MONTANA OFFICE OF THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, REGION VIII, WHILE ON A ROUTINE INSPEC- TION OF THE AREA, NOTED THE DISCHARGE OF AN ESTIMATED 40 GPM OF PRODUCTION WATER FROM THE SUBJECT FACILITY TO SOAP CREEK, A WATER OF THE UNITED STATES. SHADCO DOES NOT HAVE A PERMIT OR OTHER AUTHORIZATION FOR SUCH DISCHARGE. EPA'S AUTHORITY TO BRING AND ACTION: THE ENVIRONMENTAL PROTECTION AGENCY IS AUTHORIZED TO BRING THIS ACTION BY SECTION 309(B) OF