Resolved Spectra of the Narrow-Line Region in NGC 1068. III. Physical   Conditions in the Emission-Line Gas
  The physical conditions in the inner narrow line region (NLR) of the Seyfert 2 galaxy NGC 1068 are examined using HST/STIS ultraviolet and optical spectra and photoionization models. 1) The emission-line gas in the blueshifted northeast quadrant is photoionized by the hidden central source out to 100 pc, at which point we find evidence of another source of ionizing radiation, which may be due to fast (1000 km/s) shocks resulting from the interaction of the emission-line knots and the interstellar medium. 2) The gas in the redshifted northeast quadrant is photoionized by continuum radiation that has been heavily absorbed by gas within 30 pc of the central source. We find no strong evidence of the effects of shocks in this component. 3) The redshifted emission-line gas in the southwest quadrant is photoionized by unabsorbed continuum from the central source, similar to that in the inner 100 pc of the blueshifted northeast quadrant. Finally, 4) the emission-line spectrum of the blueshifted southwest quadrant appears to be the superposition of highly ionized, tenuous component within the ionization cone and gas outside the cone, the latter photoionized by scattered continuum radiation. There are several implications of this complicated physical scenario. First, the hidden active nucleus is the dominant source of ionizing radiation in the inner NLR. The absorption of continuum radiation along the line-of-sight to the redshifted northeast quadrant may result from the intersection of the ionization cone and the plane of the host galaxy. Finally, the evidence for shock-induced continuum radiation at the point where the emission-line knots begin to decelerate indicates that the deceleration is due to the interaction of emission-line knots with slower moving gas. 
Steven B. Kraemer and D. Michael Crenshaw