THIS REFERRAL SEEKS TO REQUIRE ZORTMAN MINING INC. AND PEG- ASUS GOLD CORPORATION TO PAY CIVL PENALTIES FOR THEIR FAIL- URE TO CONTROL DISCHARGES, CHIEFLY RELEASES OF MINE DRAINAGE WATER CONTAINING TOXIC METALS AND CONTAMINATED STORM WATER. ON 7/28/93, EPA SENT THE MONTANA WATER QUALITY DIVISION A NOTICE OF VIOLATIONS INFORMING THEM OF THE VIOLATIONS OF THE CWA. THE MONTANA WATER QUALITY DIVISION FILED A COM- PLAINT AGAINST PEGASUS AND ZMI ON 8/24/93. NEGOTIATIONS BETWEEN THE STATE AND DEFENDANTS ARE BREAKING DOWN. EPA IS CONCERNED WITH THE LACK OF PROGRESS IN THE STATES CASE AND THE ONGOING NATURE OF THE VIOLATIONS. WE SEEK INJUNCTIVE RELIEF AND PENALTIES FOR THIS VIOLATIONS OF THE CWA SECTION 309. EPA SUGGESTS A PENALTY OF $1,500,000. INJUNCTIVE RELIEF CONSISTS OF A SERIES OF PUMPBACK SYSTEMS. HOWEVER, NO DATA HAS BEEN RETRIEVED FROM THESE SITES. CASE IS RELATED TO ANOTHER CASE AGAINST PEGASUS INVOLVING THE LANDUSKY MINE. THE TWO MINES ARE ADJACENT, AND PART OF A SINGLE MINING COMPLEX. THE CASES ARE PROCEEDING CONCUR- RENTLY.