Epco, Inc. and Subsidiaries - Page 8




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          total cost of $540,000.  The cost of the sewer line connecting              
          Brookshire to the treatment facility was $350,000, with $150,000            
          of those construction costs paid by Imperial and the remaining              
          $200,000 paid from the escrow fund.  Imperial paid the total                
          $190,000 cost of the treatment facility upgrade.  Construction of           
          the sewer line and the upgrade of the treatment facility was                
          completed in April 1989.                                                    
               At the time that McClanahan was constructing the sewer line            
          in 1988 and 1989, Fribis-Wiley, a civil engineering firm of which           
          Mr. Fribis is president, was preparing plats for the development            
          of the Interstate property.  Interstate called its proposed                 
          development Pine View Acres (Pine View) and initially planned to            
          develop 326 lots for single family residences.  Fribis-Wiley                
          prepared the plans for Pine View's first phase of development,              
          which ultimately included 37 DNR-approved lots.                             
               The sewer lines within Brookshire were constructed at Mr.              
          McArthy's expense, and Mr. McArthy retained title to them and               
          responsibility for their maintenance.  Imperial owns the sewer              
          line connecting Brookshire to the treatment facility.  The sewer            
          line now serves additional customers other than those in                    
          Brookshire and Imperial continues to receive fees from these                
          additional customers.                                                       
               Of the $200,000 in escrow funds, $164,375 was disbursed in             
          1988 and $35,625 was disbursed in 1989.  Petitioner included in             





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