BUTTE WATER COMPANY, A PRIVATELY HELD PUBLIC WATER SUPPLIER PROVIDES WATER FOR THE CITY OF BUTTE MONTANA. THE SOURCES OF WATER SUPPLY ARE FOUR SURFACE SOURCES. THE WATER IS UNFILTERED. THE COMPANY HAS ISOLATED THE MAXIMUM CONTAMINANT LEVEL (MCL) FOR TURBIDITY REGULARLY SINCE MAY 1988. WHEN THE STATE OF MONTANA WITHDREW A WAIVER OF THE MCL OF INTU WHICH HAD BEEN GRANTED IN 1980, THE STATE FILED SUIT IN OCTOBER 1989 FOR INJUNCTIVE RELIEF, TO COMPEL THE COMPANY TO INSTALL A FILTRATION SYSTEM. THE STATES ACTION DOES NOT SEEK PENALTIES, NOR DOES IT NAME DENNIS WASHINGTON, THE SOLE SHARE HOLDER, AS CO-DEFENDANT. THE STATE ACTION IS PENDING WITH TRIAL SET IN STATE COURT FOR AUGUST 1991. IN AUGUST 1989, THE STATE ISSUED A HEALTH ADVISORY , ADVISING RESIDENTS OF BUTTE TO BOIL THEIR WATER. THE STATE LIFTED THE ADVISORY ON OCTOBER 30, 1990. THE TURBIDITY PROBLEMS HAVE NOT IMPROVED. EPA REGION VIII INVESTIGATED FURTHER AND FOUND IN ADDITION TO CONTINUING TURBIDITY VIOLATIONS OF BOTH MONITORING (FOR COLIFORM) AND PUBLIC NOTIFICATION REQUIREMENTS OF THE NATIONAL PRIMARY DRINKING WATER REGULATIONS, 40 CFR PART 121. ON MARCH 05, 1991, EPA ISSUED A NOTICE OF VIOLATION TO BUTTE WATER COMPANY. ON APRIL 22, 1991, EPA ISSUED AN EMERGENCY ADMINISTRATIVE ORDER REQUIRING BWC TO NOTIFY RESIDENTS THAT THEY SHOULD BOIL WATER USED FOR HUMA