SOURCE OPERATION LOUISIANA-PACIFIC CORPORATION (L-P) OWNS AND OPERATES A WAFERBOARD PRODUCTION FACILITY NEAR THE TOWN OF OLATHE IN MONTROSE COUNTY, COLORADO. IN EARLY 1984, L-P APPLIED FOR A STATE PERMIT TO CONSTRUCT THE WAFERBOARD PLANT. ACCORDING TO L-P'S ORIGINAL PERMIT APPLICATION, NO REGULATED POLLU- TANTS WOULD EXCEED THE SIGNIFICANCE LEVELS UNDER THE ENVIRONMENTAL PROTECTION AGENCY'S PREVENTION OF SIGNIFICANT DETERIORATION (PSD) REGULATIONS. STACK TESTS CONDUCTED IN MARCH OF 1985 INDICATED THAT THE POTENTIAL EMISSION RATE FOR CARBON MONOXIDE (CO) WAS 438 TONS PER YEAR. IN ADDITION ESTIMATED EMMISSIONS FOR VOLATILE ORGANIC COMPOUNDS AND PART ICULATES EXCEEDED THE SIGNIFICANCE LEVELS SPECIFIED IN THE REGULATIONS. ALTHOUGH L-P'S WAFERBOARD PLANT IS A MAJOR STATIONARY SOURCE UNDER THE PSD REGULATIONS, L-P FAILED TO OBTAIN A PSD PERMIT PRIOR TO ITS CONSTRUCTION AND OPERATION AS REQUIRED BY THE REGULATIONS. L-P FAILED TO DO SO EVEN AFTER BEING ISSUED AN ADMINISTRATIVE ORDER. ALLEGED VIOLATIONS: FAILURE TO OBTAIN A PDS PERMIT PRIOR TO CONSTRUCTION AND OPERATION OF A MAJOR STATIONARY SOURCE OF AIR POLLUTION AT ITS FACILITY IN MONTROSE COUNTY, COLORADO. FAILURE TO OBEY ADMINISTRATIVE ORDER TO OBTAIN A PERMIT, IN SEPTEMBER, 1985. PROPOSED RELIEF: