NATURE OF CASE THIS IS A CIVIL ACTION AGAINST KOCH INDUSTRIES INC. PURSUANT TO SECTION 113(B) OF THE CLEAN AIR ACT, 42 U.S.C. 7413(B), SEEKING PENALTIES FOR FAILURE TO COMPLY WITH EPA REGULATIONS RELATING TO THE PREVENTION OF SIGNIFICANT DETERIORATION (PSD) OF THE AIR QUALITY, 40 C.F.R. SECTION 52.21. CAUSE OF ACTION THIS ACTION ALLEGES THAT KOCH CONSTRUCTED AND IS OPERAT- ING A MAFOR MODIFICATION TO ITS NATURAL GAS PROCESSING PLANT IN ADAMS COUNTY, COLORADO, WITHOUT FIRST APPLYING FOR AND RECEIVING A PSD PERMIT FROM EPA. SPECIFICALLY, KOCH INSTALLED TWO GAS-FIRED COMPRESSOR ENGINES AT THE PLANT HAVING THE POTENTIAL TO INCREASE EMISSIONS OF NITROGEN OXIDES BY APPROXIMATELY 89 TONS PER YEAR. THE DE MINIMIS AMOUNT FOR NOX IS 40 TONS PER YEAR. PROPOSED REMEDY EPA SEEKS CIVIL PENALTIES IN THE AMOUNT OF $14,000 AND JUDICIALLY ENFORCEABLE EMISSION LIMITS ON THE TWO NEW ENGINES WHICH WOULD LIMIT THE INCREASE IN NOX EMISSIONS TO LESS THAN 40 TONS PER YEAR. KOCH APPEARS TO BE AGREEABLE TOWARD SETTLEMENT ON THESE TERMS. ISSUES OF NATIONAL OR PRECEDENTIAL SIGNIFICANCE NONE.