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The inspectorate of the Ministry of Environment in Slovakia discovers that a large underground oil tank has been slowly leaking oil into an underground aquifer

The inspectorate of the Ministry of Environment in Slovakia discovers that a large underground oil tank has been slowly leaking oil into an underground aquifer for the past 20 years. This behavior violates Slovak civil law. The aquifer is used for drinking water by rural residents and health authorities estimate that concentrations of oil in the aquifer have reached the point where the water is undrinkable. Local officials estimate that residents in the area use 50,000 liters per day at a cost of 1000. They have developed the potential approaches to replacing the water lost due to the contamination in the table below, and are open to combining replacement approaches. The Inspectorate would like to replace the lost water as cost-effectively as possible (i.e., at the lowest possible cost). Approach Maximum Water Production (liters/day) Total Cost per Day (including all costs) at Maximum Production Build a new pipeline to bring water from the Tatra Mountain foothills 14,000 420 Deliver water by tanker truck 22,000 880 Tap an aquifer that is farther away 88,000 7040 Buy bottled water on the open market 1,000,000 60,000 The environmental authority would like to levy a fine on the owners of the underground storage tank

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