DURING AN INSPECTION OF MINERAL ON 10/22/96 BY MEMBERS OF THE EPA AND THE MONTANA DEPARTMENT OF ENVIRONMENTAL QUALITY, IT WAS DETERMINED THAT THE RESPONDENT WAS DISCHARGING POL- LUTANTS INTO BEAR CREEK. THE INSPECTION REVEALED THAT DISCHARGES FROM THE OTN DITCH AND POND AREA CONSTITUTES A DISCHARGE WITHOUT A MPDES PER- MIT. A PENALTY OF $125,000 WAS PROPOSED. CACO ISSUED 9/11, CALLING FOR A PENALTY OF $125,000 TO BE PAID WITHIN 30 DAYS.