not completed until June 1997 and Outfall 001 was
connected to HRSD in August 1997.

Under the NPDES program as administered by EPA, permit hold-
ers who are not in compliance with the terms of their permits are
listed in the EPA's Quarterly Noncompliance Report ("QNCR").
Although it had been out of compliance for months, Smithfield's Per-
mit violations did not appear in the QNCRs until the third quarter of
1994. The EPA cited Smithfield's false and inaccurate reporting and
the Board's willingness to permit Smithfield to continue to exceed its
1992 Permit limits as the reason why Smithfield's violations did not
appear in the QNCRs. If a state does not achieve compliance, the
CWA authorizes the EPA to step in and initiate its own enforcement
action. Once Smithfield appeared in the QNCR, EPA began to closely
track Virginia's efforts tobring Smithfield into compliance.

                    8
In 1995 state and federal agencies began a criminal investigation
into the illegal activities of Terry Rettig ("Rettig"), chief operator of
Smithfield's wastewater treatment plant. Rettig was charged with fal-
sifying records and DMRs submitted to both state and federal regula-
tory agencies. When Rettig's actions came under suspicion, he
destroyed presumably incriminating records from Smithfield's waste-
water treatment operations. At the beginning of the criminal investi-
gation, federal investigators asked Virginia authorities to refrain from
pursuing an enforcement action against Smithfield for its Permit vio-
lations until after the criminal investigation into Rettig's conduct was
underway. In February 1996, the United States notified Virginia that
there was no longer any need to delay pursuing an