I. SYNOPSIS OF THE CASE THE TOWN OF CARLISLE OWNS AND OPERATES A COMMUNITY WATER SUPPLY SYSTEM FOR THE SOUTHERN INDIANA COMMUNITY OF CAR- LISLE, IN SULLIVAN COUNTY. THE TOWN OF CARLISLE'S PUBLIC WATER SYSTEM IS SUBJECT TO THE NATIONAL PRIMARY DRINKING WATER REGULATIONS(40 C.F.R. PART 141) PROMULGATED UNDER THE SAFE DRINKING WATER ACT (SWDA). SINCE OCTOBER 1982, THE TOWN OF CARLISLE'S WATER SYSTEM HAS EXCEEDED THE MAXI- MUM CONTAMINANT LEVELS (MCLS) FOR COLIFORM BACTERIA IN VIO- LATION OF 40 C.F.R. SEC. 141.14. VIOLATIONS OF THE COLIFORM BACTERIA MCL HAVE TRADITIONALLY BEEN REGARDED AS POTENTIALLY SERIOUS THREATS TO PUBLIC HEALTH BECAUSE THE PRESENCE OF SUCH BACTERIA IS AN INDICATOR OF POTENTIALLY UNSAFE WATER. IN ADDITION, THE TOWN OF CARLISLE HAS FAILED TO SAMPLE ITS WATER AND REPORT ANALYTICAL RESULTS TO EPA ON THREE OCCA- SIONS IN VIOLATION OF 40 C.F.R. SEC 141.21(B) AND 141.31(A). IT HAS FAILED TO NOTIFY THE PUBLIC AND THE USERS OF ITS SYS- TEM OF THREE EXCEEDANCES OF THE MCL FOR COLIFORM BACTERIA IN VIOLATION OF 40 CFR S141.32, AND FAILED TO NOTIFY USERS OF ONE MONITORING VIOLATION. THE RELIEF SOUGHT FROM THE TOWN OF CARLISLE INCLUDES A CIVIL PENALTY IN THE RANGE OF $10,000 (MINIMUM ACCEPTABLE PENALTY) TO $70,000 (STATUTORY MAXIMUM). THIS AMOUNT RE- FLECTS: (1) THE ECONOMIC BENEFIT GAINED FROM NONCOMPLIANCE, (2) A RECALCITRANCE PENALTY, AND (3)