ALISAL WATER COPORATION, WHICH DOES BUSINESS AS ALCO WATER SERVICE, AND NINE OTHER CLOSELY AFFILIATED COMPANIES, OPERATE PUBLIC WATER SYSTEMS THAT SUPPLY WATER FOR DOMESTIC USE AT OR NEAR THE CITY OF SALINAS IN MONTEREY COUNTY, CALIFORNIA. AT VARIOUS TIMES SINCE AUGUST, 1991, THESE COMPANIES HAVE SUBMITTED FALSE REPORTS OF THE MONITORING OF THEIR PUBLIC WATER SYSTEMS TO THE STATE OF CALIFORNIA AND THE COUNTY OF MONTEREY. IN JUNE OF 1994, UPON DISCOVERY OF THE FIRST FALSE REPORTS THE STATE OF CALIFORNIA REFERRED THIS MATTER TO THE U.S. ATTORNEY FOR THE NORTHERN DISTRICT OF CALIFORNIA FOR A CRIMINAL INVESTIGATION. AN INVESTIGATION WAS UNDERTAKEN BY THE U.S. ATTORNEY'S OFFICE IN COLLABORATION WITH THE CRIMINAL INVESTIGATION DIVISION, OFFICE OF CRIMINAL ENFORCEMENT, U.S. EPA. THE CRIMINAL INVESTIGATION WAS DECLINED BY THE UNITED STATES ATTORNEY ON AUGUST 30, 1996. BECAUSE OF THE LENGTH OF THE CRIMINAL INVESTIGATION AND BECAUSE THE STATUTE OF LIMITATIONS REGARDING SOME OF THE EARLY REPORTING MAY BEGIN TO BAR CLAIMS AS EARLY AS AUGUST 28, 1996, TIME HAS BEEN OF THE ESSENCE. TO AVOID STATUTE OF LIMITATIONS BARS, THE GOVERNMENT AND THE PROSPECTIVE DEFENDANTS ENTERED INTO A TOLLING AGREEMENT ON AUGUST 16, 1996, THAT EXPIRES ON OCTOBER 15, 1996. ALISAL WATER CORPORATION AND ITS RELATED WATER SYSTEMS SUBMITTED FALSE SAMPLING INFORMATION T