BACKGROUND AND NATURE OF THE CASE THE U.S. FILED SUIT AGAINST THE CITY OF HAMMOND, IN., AND ITS COMMON COUNCIL, THE TOWN OF MUNSTER, IN., AND ITS BOARD, AND THE SANITARY DIST OF HAMMOND ( HSD ), ON JULY 6, 1983, FOR VIOLATIONS OF THE CWA AND FOR VIOLATIONS OF THEIR NAT'L POLLUTANT DISCHARGE ELIMINATION SYSTEM ( NPDES ) PERMIT WHICH OCCURRED AT THE HSD WASTEWATER TREATMENT FACILITY. THE PARTIES RESOLVED THE SUIT BY MEANS OF A CONSENT DECREE. THE CONSENT DECREE MANDATED THE ESTABLISHMENT AND INITIATION OF CERTAIN MEASURES TO ENSURE THAT SANITARY SLUDGE FROM THE FACILITY WAS DISPOSED OF PROPERLY. THE CONSENT DECREE ALSO MANDATED AN ADEQUATE PRETREATMENT PROGRAM FOR THE HAMMOND FA CILITY. IN THE TIME SINCE THE COURT ENTERED THE CONSENT DECREE, HSD HAS FAILED TO IMPLEMENT INTERIM MEASURES TO REDUCE EXIST ING SLUDGE LEVELS AT THE FACILITY, AND HAS FAILED TO IMPLE- MENT ITS APPROVED PRETREATMENT PLAN IAW THE CONSENT DECREE. THE HSD IS ALSO LIKELY TO VIOLATE THE DATE IN THE DECREE FOR SUBMITTAL OF ITS FINAL SLUDGE LAGOON CLOSURE PLAN, AND IS CURRENTLY IN VIOLATION OF ITS NPDES PERMIT FOR FAILURE TO START CONSTRUCTION OF NITRIFICATION FACILITIES BY MAY 1, 1987. CAUSE OF ACTION THE DEFENDANT, HSD, IS IN VIOLATION OF SECT VII OF THE CON SENT DECREE, WHICH ESTABLISHED A COMPL