THE PROPOSED DEFENDANT, THE CITY OF FORT MORGAN, COLORADO, OWNS AND OPERATES A WASTEWATER TREATMENT PLANT WHICH DISCHARGES INTO THE SOUTH PLATTE RIVER. WE BELIEVE THAT THE CITY HAS FAILED TO PROPERLY ENFORCE AND IMPLEMENT ITS PRETREATMENT PROGRAM SINCE ITS APPROVAL BY EPA IN AUGUST, 1985. WE HAVE CALCULATED A BOTTOM LINE SETTLEMENT FIGURE OF $194,000. THE ECONOMIC BENEFIT PORTION OF THIS PENALTY IS ESTIMATED AT $65,000. A SUBSTANTIAL PORTION OF THE CITY'S LIABILITY RESTS UPON ITS FAILURE TO ENFORCE AGAINST EXCEL CORPORATION FOR INCREASED DISCHARGE OF HIGH-STRENGTH WASTES SUCH THAT THE FACILITY EXPERIENCED PASS THROUGH AND INTERFERENCE AND VIOLATED ITS NPDES PERMIT. PENDING FURTHER INFORMATION FROM RESPONSES TO 308 INFORMATION REQUESTS PROBING THE NATURE OF EXCEL'S RELATIONSHIP WITH THE CITY, THE REGION PLANS TO INITIATE A SIMILAR ENFORCEMENT ACTION AGAINST EXCEL. HOWEVER, THIS SHOULD NOT AFFECT THE PRESENT ACTION AGAINST THE CITY.