CHEVRON U.S.A., INC. OWNS AND OPERATES AN OFFSHORE OIL PLATFORM KNOWN AS PLATFORM GRACE. THIS FACILITY LOCATED IN FEDERAL WATERS IN THE SANTA BARBARA CHANNEL, PRODUCES CRUDE PETROLEUM AND NATURAL GAS. THE DISCHARGES FROM THE FACILITY TO THE PACIFIC OCEAN ARE REGULATED BY NPPES PERMIT NO. CA0110397 ISSUED BY EPA. THE PERMIT ESTABLISHES EFFLUENT LIMITATIONS, MONITORING AND REPORTING REQUIREMENTS AND OTHER CONDITIONS. THIS CASE ARISES UNDER THE CLEAN WATER ACT AND CONCERNS BOTH DISCHARGES IN VIOLATION OF THE PERMIT'S EFFLUENT LIMI- TATION AND VIOLATION OF THE REPORTING AND MONITORING RE- QUIREMENTS. FOR MANY YEARS, PLATFORM GRACE HAS BEEN CON- SISTLY VIOLATING ITS EFFLUENT LIMITATIONS, PRIMARILY THE OIL AND GREASE PARAMETER, HAS BEEN FAILING TO PROPERTY REPORT ALL OF ITS SAMPLING RESULTS IN ITS DISCHARGE MONITORING REPORTS (DMRS). IN SEPTEMBER, 1987, THE REGION ISSUED AN ADMINISTRATIVE ORDER REQUIRING CHEVRON TO COMPLY WITH THE TERMS OF ITS PERMIT. CHEVRON INSTALLED A NEW TREATMENT PROCESS AND IS NOW IN COMPLIANCE WITH THE PERMIT. THIS ACTION SEEKS TO RECOVER PENALTIES FOR THE CLOSE TO 200 PAST VIOLATIONS IN ORDER TO ENSURE CONTINUED COMPLIANCE AND ACHIEVE BOTH SPECIFIC AND GENERAL COMPLIANCE.