Facility Name:

Docket Number:
NPDES No:
Prepared By:

Date:
Policy: 1995 CWA Settlement Policy
Version 11.3

Monthly Gravity Component Calculation Worksheet

Month
# Per- # Unperor
mit Vio- mitted
Highest Violation
Quarter lations Violations % Exceed
Type

Additive Factors
B
C

Total Gravity
1+(A+B+C+D)0
X $1000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

Violations

Case Name:
Prepared by:
Docket Number:

Total =

0
0
$0

Date:
Attorney:
Permit:

Clean Water Act NPDES Penalty

Settlement Calculation Worksheet
Calculate Statuatory Maximum Penalty
From:
December 1899
To:
December 1899
Admin. Judicial
Unpermitted violations 2/1/97 to 3/15/2004
0
0
0
Permitted violations 2/1/97 to 3/15/2004
0
0
0
Unpermitted violations after 3/15/2004
0
Admin.:
0
0
Permitted violations after 3/15/2004
0
0
0 Judicial:
Economic Benefit (attach BEN printouts, with explanations for calculations)
Total of Monthly Gravity Amounts
Economic Benefit + Gravity Amounts
Gravity Adjustments
Flow Reduction (0-50%)
0%
$0
Recalcitrance Factor (0-150%)
0%
$0
Quick Settlement Reduction (0-10%)
0%
$0
Total gravity adjustments
$0
Preliminary Penalty Amount
Litigation Consideration (if any) Regional Counsel Concurrence:________________
Ability to Pay reduction (if any) Attach ABEL, INDIPAY or MUNIPAY report
Bottom Line without Economic Benefit
Bottom-line Cash Settlement Penalty
National Municipal Litigation (NML) Alternative Penalty Calculation
Is Respondent a Muncipality
No
Table A (Sheet 2)
Service Population
Table B (Sheet 2)
Actual or Potential Harm
Subtotal
Months of Violation
0
40% of subtotal (max)
Economic Benefit
0
Max SEP
see Section IV.D.7. of the Settlement Policy
Proposed SEP
SEP Credit %
SEP Reduction
SEP + Bottom Line

Bottom Line with NML

Supplemental Environmental Projects (see above section for NML SEP calculations)
Bottom-line with Max. SEP Credit
Max. SEP Credit (except for NML calculations)
Max. SEP Value (dividing Max. SEP Credit by Credit Percentage)
Proposed SEP Value
Credit Percentage for SEP (usually 20-80%)
Credit Value for SEP (Credit Percentage X Proposed SEP Value)
Proposed SEP plus Bottom-line Cash Settlement (effective cost of penalty to Respondent)
Bottom-line Cash Settlement with Proposed SEP

Version 11.3

$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
0
0
$0
$0
$0
$0
50%
$0
$0

$0
$0
$0
$0
$0
50%
$0
$0

$0

The above calculations made based on guidance in EPA's 1995 CWA Settlement Policy
Last updated April 17, 2005
As of March 15, 2004, violations for Class I have a maximum of $32,500 and Class II a maximum of $157,500
From Feb. 1997 through March 14, 2004, the maximums were $27,500 and $137,500, respectively.

Facility Name:
Docket Number:
NPDES Permit No:
Prepared By:

Penalty Calculation Rationale

Version 11.3

This penalty calculation was determined using the 1995 Clean Water Act Settlement Policy
(available at http://www.epa.gov/region6/6en/w/formenf.htm). The penalty calculation
methodology is based upon the following formula: Penalty = Economic Benefit + Gravity
Gravity Adjustment Factors - Litigation Considertions - Ability to Pay - Supplemental
Environmental Projects.
Economic Benefit:

$0
The objective of the economic benefit calculation is to place violators in the same
financial position as they would have been in if they had comlied on time. The
delayed/avoided CWA pollution controls for this case are (e.g., monitoring, reporting,
capital equipment improvements, repairs, engineering design, installation and
replacement). The economic model used to determine the value of benefit gained is
the BEN financial model, which is available online at
www.epa.gov/Compliance/civil/programs/econmodels/. Financial summaries of the
BEN model are attached to the penalty calculation in this package.

Gravity:

$0
The gravity is the deterence portion of the penalty and is derived by the following
formula: Monthly gravity component = (1+A+B+C+D) X $1000, where A is the
Significance of the violation (range of 0-20), B is the Health and Environmental
Harm (value of 0-50), C is the Number of Effluent Violations (range of 0-5), and D is
the significance of non-effluent limit violations (range of 0-70). Using the associated
tables in the policy for each factor and best professional judgment, numbers were
assigned for each factor and each month as documented in the Monthy Gravity
Component Worksheet.

Gravity Adjustment Factors:

$0

The gravity adjustment factors are 3 factors that effect the penalty and they are:
1) Flow Reduction, 2) History of Recalcitrance, and 3) Quick Settlement Discount.
For this case, no flow reduction credit was given, no history of recalitrance was
assigned, and a quick settlement of 10% was assigned to the penalty due to the
cooperation provided by Respondent in settling the case.

Page 2 - Penalty Calculation Rationale

Litigation Considerations & Inability to Pay:
$0
The government may reduce the amount of a civil penalty to reflect weaknesses in a
case where the facts demonstrate a substantial likelihood that the government will
not achieve a higher penalty at trial. This amount is determined by Regional
Counsel based on their legal review of the case and their experience in settling
similar cases. No litigation consideration amount has been deemed appropriate by
Regional Counsel for this case. Additionally, Respondent has not yet claimed an
inability to pay. If Respondent makes such a claim, EPA will evaluate the inability to
pay according to ABEL and MUNIPAY economic models, and reduce the penalty
accordingly.

National Municipal Litigation:

$0

In those cases against a municipality or other public entity, in which the entity has
failed to comply with the CWA, but nevertheless did make good faith efforts to
comply, the EPA may mitigate the preliminary penalty amount with this penalty
calculation formula using table A of this policy. This facility is not a municipality and
does not qualify.

Supplemental Environmental Projects

SEP Category

$0

50%

Based on the above rationale and information documented in the Monthly Gravity Component
Calculation Worksheet and the Settlement Calculation Worksheet, the final bottom line penalty
is:
$0

ENFORCEMENT MANAGEMENT/SETTLEMENT STRATEGY DOCUMENT

I. EPA Region 6 Initial Position for Settlement:
A.. 1. Topic: 2. Case Synopsis: 3. Proposed Penalty: 4. SEP/NO SEP (ideas):

INITIAL SETTLEMENT STRATEGY TABLE

Bottomline Cash Penalty
Bottom Line Cash Penalty
with SEP
w/o SEP (BEN plus Gravity)
$0
$0

Comment

Initial Settlment Strategy: Approved by __________________(initial & date by Branch Chief or Director)
Approved by __________________(initial & date by Section Chief)
B. Settlement Conclusion
1. Settlement Description (Civil Penalty, SEP, Injunctive Relief) - In this section the
enforcement staff should briefly describe how final settlement was achieved.

SETTLEMENT CONCLUSION TABLE

Bottomline Cash
Initial Cash

Adjusted Final Cash

Penalty with SEP

$0

Penalty w/o SEP

$0

Amount Penalty
$0

Short Rationale
Good Faith Rationale, Litigation
Risk, etc.

Comment:

Case Conclusion:

Initials

Date of Initials

Name Printed

Title
Enforcement Officer
Attorney

*NOTE: Civil Penalty less than $500,000 or equal to will be approved by the Branch Chief.
Anything over $500,00 will be approved by the Division Director.
Civil Penalty Negotiations from Peer Reviewed penalty calculation.
I. Penalty reduction/increase - Section Chief (20 - 35% below bottom line)
II. Penalty reduction/increase - Branch Chief (35-50% bbl & approves inability to pay below 10%)
III. Penalty reduction/increase - Divisoin Director (more than 50%bbl)
Version 11.3

*ENFORCEMENT SENSITIVE* *INTERNAL* *ANALYTICAL* * DELIBERATIVE*

National Municipal Litigation - Table A

Column
1
Actual or
Potential
From
$1
Harm
To
$50,000
None
From
6
To
9
Minor
From
9
To
11
Moderate
From
13
To
14
Severe
From
17
To
32

2
$50,000
$100,000

National Municipal Litigation - Table B

Column

5
Economic Benefit

$100,000
$250,000 $1,000,000 $2,000,000
$250,000 $1,000,000 $2,000,000 $5,000,000

11
15
16
19
22
25
30
55

17
23
25
29
33
38
46
84

32
43
47
55
63
71
87
158

49
67
73
86
98
110
135
245

75
103
112
131
150
168
206
374

Months of Violati
Service Population
From
To
100
5,000
5,001

25,000

25,001

50,000

50,001

100,000

100,001

250,000

250,001

500,000

500,001 1,000,000
1,000,001 2,000,000
2,000,001 3,000,000

From
To
From
To
From
To
From
To
From
To
From
To
From
To
From
To
From
To
From
To
Column

1
6

7
12

0.0
0.6
0.6
3.0
3.0
6.0
6.0
12.0
12.0
30.0
30.0
60.0
60.0
120.0
120.0
240.0
240.0
360.0
1

0.0
1.8
1.8
9.0
9.0
18.0
18.0
36.0
36.0
90.0
90.0
180.0
180.0
360.0
360.0
720.0
720.0
1,080.0
2

13
18
0.1
3.0
3.0
15.0
15.0
30.0
30.0
60.0
60.0
150.0
150.0
300.0
300.0
600.0
600.0
1,200.0
1,200.0
1,800.0
3

Calculations
0
0
0
0

0.1
4.2
4.2
21.0
21.0
42.0
42.0
84.0
84.0
210.0
210.0
420.0
420.0
840.0
840.0
1,680.0
1,680.0
2,520.0
4

25
30
0.1
5.4
5.4
27.0
27.0
54.0
54.0
108.0
108.0
270.0
270.0
540.0
540.0
1,080.0
1,080.0
2,160.0
2,160.0
3,240.0
5

No
Harm

Column
Service Population
Actual or Potential Harm
Months of Violation
Economic Benefit
Low Harm Factor A
High Harm Factor A
Low Dollar

19
24

Low
6

Minor
Harm

High
9

Low
9

High Dollar
Slope
Extrapolated Harm Factor A

50,000
#VALUE!
#VALUE!

Low Population Factor B

0
High Population Factor B
1
Low Population B
100
High Population B
5,000
Slope
8166.66667
Extrapolated Population Factor B
0

Column
1

From

To

From

100

5,000

5,001

Low
0

High
0.6

Low
0.6

100
0

5,000
0.6

0
0

$5,000,000
$10,000,000

$10,000,000
$25,000,000

$25,000,000
greater

110
151
164
192
219
246
301
548

167
230
251
293
335
376
460
837

167
230
251
293
335
376
460
837

6
7
Months of Violation
31
37
36
42
0.1
0.2
6.6
7.8
6.6
7.8
33.0
39.0
33.0
39.0
66.0
78.0
66.0
78.0
132.0
156.0
132.0
156.0
330.0
390.0
330.0
390.0
660.0
780.0
660.0
780.0
1,320.0
1,560.0
1,320.0
1,560.0
2,640.0
3,120.0
2,640.0
3,120.0
3,960.0
4,680.0
6
7

enefit

Minor
Harm

43
48
0.2
9.0
9.0
45.0
45.0
90.0
90.0
180.0
180.0
450.0
450.0
900.0
900.0
1,800.0
1,800.0
3,600.0
3,600.0
5,400.0
8

Moderate
Harm

High
11

Low
13

High
14

10

49
54

55
60

0.2
10.2
10.2
51.0
51.0
102.0
102.0
204.0
204.0
510.0
510.0
1,020.0
1,020.0
2,040.0
2,040.0
4,080.0
4,080.0
6,120.0
9

11

12

0.3
12.6
12.6
63.0
63.0
126.0
126.0
252.0
252.0
630.0
630.0
1,260.0
1,260.0
2,520.0
2,520.0
5,040.0
5,040.0
7,560.0
11

67
greater
0.3
14.0
14.0
70.0
70.0
140.0
140.0
280.0
280.0
700.0
700.0
1,400.0
1,400.0
2,800.0
2,800.0
5,600.0
5,600.0
8,400.0
12

61
66

0.2
11.4
11.4
57.0
57.0
114.0
114.0
228.0
228.0
570.0
570.0
1,140.0
1,140.0
2,280.0
2,280.0
4,560.0
4,560.0
6,840.0
10

Severe
Harm

Low
17

High
32

Service Population

To

From

To

From

To

From

To

From

To

25,000

25,001

50,000

50,001

100,000

100,001

250,000

250,001

500,000

High
3

Low
3

High
6

Low
6

High
12

Low
12

High
30

Low
30

High
60

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

From

To

From

To

From

To

500,001

1,000,000

1,000,001

2,000,000

2,000,001

3,000,000

Low
60

High
120

Low
120

High
240

Low
240

High
360

0
0

0
0

0
0

0
0

0
0

0
0

Cost of Compliance for Construction based on Acres

Start Date
Inspection Date
Completion Date
No. of Acres Disturbed for Common Plan of Development or Sale
- Change # of Acres to a particular Operators acreage to determine their Cost of Compliance

75%
Implementation Efficiency (100% = doing everything, 0% = did nothing)
75%
Paperwork completeness (SWPPP & NOI) (100% = all done right)
$0
Reduction
Reduction
Based on 63 FR 7896 & 1.7% annual inflation since 1997
For Acres: $6382 annual costs for 5 acre site, $882 in fixed NOI/SWPPP costs
For Case Conclusion Data Sheet:

Cost of Physical Actions

Cost of Non-Physical Actions (SWPPP, application, etc)
Total Cost of Compliance Saved

Numbers to use for the EPA BEN model:

Capital Investment
One-Time, Nondepreciable Expenditure:
Annually Recurring:
Noncompliance Date:
Compliance:

$0
$169
$0
12/30/1899
01/29/1900

12/30/1899
12/30/1899
12/30/1899
(Inspection Date + 30 days)

r Cost of Compliance

Date + 30 days)

1
50,000
50,000
100,000
100,000
250,000
250,000
1,000,000
1,000,000
2,000,000
2,000,000
5,000,000
5,000,000
10,000,000
10,000,000
25,000,000
25,000,000

None
6
9
11
15
17
23
32
43
49
67
75
103
110
151
167
230
167

Minor Moderate
9
13
11
14
16
22
19
25
25
33
29
38
47
63
55
71
73
98
86
110
112
150
131
168
164
219
192
246
251
335
293
376
251
335

Severe
17
32
30
55
46
84
87
158
135
245
206
374
301
548
460
837
460