FRANK BONNER AND CARDINAL FENCING FAILED TO PAY A PENALTY ASSESSED UNDER CACO ARISING FROM THEIR FAILURE TO PERFORM ALL OF THE REQUIREMENTS SET FORTH IN THE CACO. SPECIFICALLY THE CACO PROVIDED THAT BONNER OR CARDINAL HAD TO APPLY TO THE ARMY CORPS OF ENGINEERS FOR AN AFTER THE FACT PERMIT PURSUANT TO SECTION 404 OF THE CWA. THAT APPLICATION WAS NOT MADE. THEREFORE, PURSUANT TO THE CACO, EPA DEMANDED PAY MENT OF $48,000, REPRESENTING THE OUTSTANDING PENALTY PRO- POSED UNDER THE COMPLAINT. BONNER AND CARDINAL HAVE REFUSED TO PAY THIS PENALTY.