NATURE OF THE CASE/CAUSE OF ACTION: AS INDICATED IN THE LITIGATION REPORT PENNTECH VIOL- ATED ITS BOD5 & TSS EFFLUENT LIMITATIONS DURING MOST OF THE MONTHS BETWEEN 10/77 & 3/80. AS DISCUSSED AT PAGES 20-22, THE EFFLUENT LIMITATIONS IN PENNTECH'S PERMIT ARE BASED ON BEST ENGINEERING JUDGMENT. THE LIMITATIONS WHICH WOULD HAVE BEEN IMPOSED BASED ON EPT GUIDELINES ARE SUB- STANTIALLY LESS STRINGENT. THIS MAY AFFECT OUR SUCCESS IN COLLECTING A SUBSTANTIAL CIVIL PLTY IF EQUITABLE DEFENSES ARE RAISED. IT SHOULD ALSO BE NOTED THAT PENNTECH IS IN A UNCER- TAIN POSITION W/RESPECT TO THE NPDES PERMITTING PROCESS BECAUSE THE STATE HAS EXTENDED PENNTECH'S PERMIT WHICH EXPIRED IN 7/79, & BAT GUIDELINES HAVE NOT YET BEEN ISS- UED. THIS MAY AFFECT PENNTECH'S WILLINGNESS TO AGREE TO REMEDIAL CONST AS PART OF A CD. THE FOREGOING UNDERSCORES THENEED TO INVOLVE THE STATE IN ANY STTLMNT NEG'S. THE CASE OUGHT TO BE FILED AS EXPEDITIOUSLY AS POSSIBLE TO AVIOD THE KIND OF DELAYS WHICH CAN BE EXPECTED FROM PENN- TECH. AN ADDITIONAL VIOL OF THE CWA IS SUGGESTED BY THE RESULTS OF AN 8/9/79, INSPECTION INDICATING THAT PENNTECH HAS DISCHARGED POLLUTANTS THROUGH UNPERMITTED OUTFALLS INTO THE CLARION RIVER. THESE DISCHARGES HAVE NEVER BEEN SAMPLED & NO FOLLOW-UP INSPECTION WAS