SUNNY ACRES WATER CO., AN OREGON CORP., PROVIDES WATER THROUGH 40 SERVICE CONNECTIONS TO ABOUT 105 PEOPLE LOCATED IN A COMMUNITY NEAR NEWBERG, OREGON. THE SIZE OF THE SUNNY ACRES DISTRIBUTION SYSTEM ESTABLISHES IT AS A PUBLIC WATER SYSTEM THAT IS SUBJECT TO THE MONITORING AND REPORTING RE- QUIREMENTS OF THE SDWA. THE PRESIDENT OF THE COMPANY IS WILLIAM BOYD. SUNNY ACRES PURCHASES ITS WATER FROM THE CITY OF NEWBERG, OREGON. SINCE IT IN TURN SELLS THE WATER TO ITS CUSTOMERS, IT IS NOT EXEMPT FROM THE REQUIREMENTS OF THE ACT. HOWEVER, EPA HAS THE DISCRETION TO MODIFY THE USUAL MONITORING & RE- PORTING REQUIREMENTS FOR SUCH 'CONSECUTIVE' WATER SYSTEMS. EPA REGION 10 HAS ESTABLISHED A GENERAL POLICY THAT CONSECUTIVE WATER SYSTEMS NEED ONLY MONITOR AND REPORT FOR BACTERIALOGICAL CONTAMINANTS WHEN THE SYSTEM FROM WHICH THEIR WATER IS OBTAINED PERFORMS ANALYSES FOR THE REMAINING CONTAMINANTS THAT ARE REGULATED UNDER THE SDWA -- SUCH AS TURBIDITY AND CHEMICAL CONTAMINANTS. THIS POLICY WAS EXPLAINED TO SUNNY ACRES ON A NUMBER OF OCCASIONS. THE FIRST SUCH NOTICE WAS IN APRIL OF 1980. DESPITE REPEATED CONTACTS FROM EPA, SUNNY ACRES HAS FAILED TO PERFORM EVEN THE MINIMAL ONCE-MONTHLY MICROBIOLGICAL SAMPLING THAT IS REQUIRED OF IT. EPA RECORDS SHOW THAT IN THE PERIOD FROM APRIL, 1980 THROUGH FEBRUARY, 1984, SUNNY ACRES HAS SAMPLED FOR MICROBIOLOGICAL