NATURE OF THE CASE: THE PORT IS A PUBLIC CORP ESTABLISHED UNDER CA LAW WHICH IS SITUATED W/IN, BUT DISTINCT FROM THE, CITY OF STOCKTON. THE PORT PRIMARILY HANDLES THE TRANSFER OF CEMENT, FERTILIZER, PETROLEUM, COKE & PHOSPHATE ROCK BE- TWEEN RAILROAD CARS & TRUCKS. THE SOURCE IS ONE MILE UP- WIND OF STOCKTON & IS LOCATED IN A NONATTAINMENT AREA. THE SOURCE HAS VIOL'D THE 20% SIP OPACITY LIMIT AT VARIOUS POINTS IN ITS PROCESSING OF MAT'L. THE PORT ALSO CONSTRUC- TED A NEW BULK HANDLING FACILITY W/OUT OBTAINING A NEW SOURCE REVIEW PERMIT. THE PORT WAS ISSUED NOV'S ON 9/2/80, 4/8/81 & 8/28/81 ADDRESSING SIP OPACITY VIOL'S. THE 4/8/81 NOV ALSO COVERED THE PORT'S FAILURE TO APPLY FOR AND RECEIVE A PERMIT PRIOR TO CONST OF THE BULK HANDLING SYSTEM. A DRAFT CD WAS SENT FROM REGN 5 IN 7/6/82 TO THE PORT. (THE PORT WAS LISTED IN CDS AS A SIGNIFICANT VIOLATOR.) C/A: THE SOURCE HAS VIOL'D SIP RULE 401 WHICH LIMITS OPA- CITY TO 20% & MAY HAVE ALSO VIOL'D THE SIP NEW SOURCE REVIEW REQUIREMENTS. PROPOSED REMEDY: A CD WAS REJECTED BY THE PORT. A MAJOR POINT OF DIF- FERENCE IS THE PLTY FIGURE. THE PORT DOES NOT BELIEVE THAT ONE GOV'T BODY SHOULD PAY ANOTHER A PLTY. THE CIVIL PLTY POLICY ON P. 23 EXPLICITLY PROVIDES FOR CIVIL PLTY'S, WHEN APPROPRIATE, FROM MUNICIPAL CORP'