The STOB: Stream Observation Package pane is on the MODFLOW Features tab of the Object Properties dialog box. This pane is only visible if the STOB package is selected. It can only be selected if one or more of the objects being edited defines a Stream (STR) boundary.
The table on this pane is used to specify the observation groups in which this object is included. The object is included in an observation if the checkbox for the observation is checked. Factor is a formula that determines how much of the flow to or from the boundary condition is should be include in the observation at any particular location. Usually, Factor is set to 1. See the Manage Flow Observations dialog box for a more extensive discussion of Factor.
Clicking the Add or remove flux observations button will display the Manage Flow Observations dialog box.