THE SUIT ALLEGES THAT THE CITY OF SKAGWAY VIOLATED ITS NPDES PERMIT FOR ITS POTW BY DISCONTINUING OPERATIONS AT THE TREATMENT PLANT IN 1979 AND ALLOWING UNTREATED SEWAGE TO BE DISCHARGED TO MARINE WATERS. SINCE FILING OF THE COMPLAINT, THE CITY HAS BEEN JOINED BY THE PACIFIC LEGAL FOUNDATION IN SUCCESSFULLY ATTACKING EPA REGS LIMITING APPLICABILITY OF CWA SECTION 301(H) WAIVERS. EPA HAS REFORMED ITS REGS AND SKAGWAY HAS APPLIED FOR A WAIVER. EPA HAS BEGUN PERMIT ISSUANCE PROCEDURE. CASE IS STAYED BY THE CT IN INTERIM.