Energy Resources, Inc., operates an oil refinery near Forest River, which flows into Grove Lake. Discharging oil from the refinery into the river can result in

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Discharging oil from the refinery into the river can result in both penalties and damages. Penalties may be imposed by regulatory agencies such as the Environmental Protection Agency (EPA) for violating environmental laws. Damages may be incurred due to harm done to the environment and local wildlife, as well as potential harm to human health and property. Therefore, both penalties and damages can result from this action.