The activities suspected by the EPA include improper discharge of surface or ground water from the site into the Penrose Canal and discoloration of the banks of the canal, according to the Press of Atlantic City. Over 5 million gallons of water must be pumped out of the Tunnel every day. The EPA has set 30 days for the project contractor to submit a compliance report before the agency will consider penalties or legal action.

This action marks the third time in just over six months that the project has run afoul of environmental regulations. In early May, the SJTA settled a suit with the Army Corps of Engineers, paying a fine of $225,000 for violation of wetlands filling permits (MTR #269). In December of 1999 the NJ DEP cited contractors for failing to perform a daily air quality test. When permit applications were considered in 1998-99, environmentalists from around the state testified that the tunnel/connector project would cause unavoidable harm to water quality and surrounding wetlands.

The Tunnel and expressway extension are projected to open in 2001 as a link between the Atlantic City Expressway and the Marina district where Mirage Resorts plans a billion-dollar casino development.