This is an Administrative Penalty Complaint pursuant to Section 404 of the Clean Water Act issued to Pacific Gas and Electric (PG&E). The violation involves the discharge of dredged and fill material into waters of the United States. PG&E owns and operates a high pressure gas pipeline that crosses Morro Creek approximately two miles from the Pacific Ocean. Morro Creek is an intermittent stream that is a tributary of the Pacific Ocean (a water of the United States). Between the 24th of July 1997 and the 2nd of August 1997, PG&E directed its contractor (Ercon) to install bank stabilization and gas pipeline support structures (concrete revetment and fill) directly in Morro Creek to support a 24 inch, high pressure natural gas pipeline that served at the time as PG&E''s sole supply of natural gas to its power plant at Morro Bay. During the project, PG&E directed its contractor Ercon to discharge dredged or fill materials, primarily consisting of native creek bed materials, soils, and concrete and fill dirt, in Morro Creek. At the time of the discharge described above, neither PG&E nor their contractor Ercon had a permit from the Army Corps of Engineers authorizing such discharge. Although a settlement in principle was reached with PG&E in the Fall of 1999, a number of intervening factors have delayed final implementation of the settlement document. EPA therefore decided to file the present complaint and continue negotiation. Under terms of the current settlement proposal, P