THE INITIAL CASE WAS BROUGHT AGAINST THE CITY OF MIDDLESBORO TO FORCE COMPLIANCE WITH NPDES PERMIT CONDI- TIONS. THE TANNERY WAS NAMED AS AN INTERESTED PARTY, AS THE LARGEST INDUSTRIAL USER OF THE CITY WASTEWATER TREAT- MENT PLANT. THE INITIAL COMPLAINT WAS SETTLED, WITH ALL PARTIES (INCLUDING THE YELLOW CREEK CONCERNED CITIZENS, WHO LIVE DOWNSTREAM OF THE CITY PLANT DISCHARGE) SIGNING THE CONSENT DECREE. THE MOST IMPORTANT REQUIREMENT IN THE CONSENT DECREE WAS A REQUIREMENT FOR THE CITY TO BUILD A NEW WASTEWATER TREATMENT PLANT BY OCTOBER, 1986, AND ACHIEVE COMPLIANCE WITH NPDES PERMIT LIMITS BY JANUARY, 1987. BOTH OF THESE WERE ACCOMPLISHED ON SCHEDULE. THE CITY AND TANNERY DID VIOLATE LESSER REQUIREMENTS OF THE CONSENT DECREE, AND THE U.S. FILED MOTIONS TO ENFORCE THESE VIOLATIONS, AGAINST THE CITY AND TANNERY. AFTER EXTENSIVE DISCOVERY, A WEEK BEFORE TRIAL THE CITY AND TANNERY ACCEPTED OUR SETTLEMENT AMOUNT OF $125,000, CONTINGENT ON AGREEMENT TO OTHER TERMS OF A SETTLEMENT. AN AMENDED CONSENT DECREE WAS NEGOTIATED IN OCT., AND SENT TO THE PARTIES FOR CON- CURRENCE AT THE END OF NOVEMBER, AFTER REVIEW AND COMMENTS (INCORPORATED INTO THE ACD) BY EPA OECM AND DOJ. THE CITIZENS GROUP WILL PROBABLY OPPOSE THIS SETTLEMENT BUT THE OTHER PARTIES ARE EXPECTED TO SIGN.