STATE OF INDIANA ) BEFORE THE INDIANA DEPARTMENT

) SS: OF ENVIRONMENTAL MANAGEMENT

COUNTY OF MARION )

COMMISSIONER OF THE DEPARTMENT )

OF ENVIRONMENTAL MANAGEMENT, )

)

Complainant, )

)

v. ) Case No. 2001-10652-A

)

STATE LINE ENERGY, LLC, )

)

Respondent. )

AGREED ORDER

The Complainant and the Respondent desire to settle and compromise this action without hearing or adjudication of any issue of fact or law, and consent to the entry of the following Findings of Fact and Order. Pursuant to IC 13-30-3-3, entry into the terms of this Agreed Order does not constitute an admission of any violation contained herein. Respondent's entry into this Agreed Order shall not constitute a waiver of any defense, legal or equitable, which Respondent may have in any future administrative or judicial proceeding, except a proceeding to enforce this order.

I. FINDINGS OF FACT

1. Complainant is the Commissioner ("Complainant") of the Indiana Department of Environmental Management, a department of the State of Indiana created by IC 13-13-1-1.

2. Respondent is State Line Energy, LLC ("Respondent"), which operates a stationary electric utility power plant ID 089-00210 located at 103rd St. and Lake Michigan, in Hammond, Lake Co., Indiana ("Site"). On June 1, 2002, Dominion acquired State Line Energy, LLC.

3. The Indiana Department of Environmental Management ("IDEM") has jurisdiction over the parties and the subject matter of this action.

4. Pursuant to IC 13-30-3-3, on May 29, 2002 IDEM issued a Notice of Violation via Certified Mail to:

William Patzin, Plant Manager

State Line Energy, LLC

PO Box 687

Hammond, IN 46325-0687

• A records review, for the 1st Quarter 2001, was conducted of the Site by a representative of IDEM's Office of Air Quality (OAQ). The following violations were in existence or observed at the time of this review:



• Pursuant to 326 IAC 5-1-2(2)(B), opacity from a source or facility located in Lake County shall not exceed an average of twenty percent (20%) opacity in any one (1) six (6) minute averaging period. Respondent's visible emissions from boiler Unit No. 4 exceeded this limit for 52 hours or 2.58% of 2016 hours of operation during the 1st Quarter 2001, a violation of 326 IAC 5-1-2(2)(B).

6. Respondent has replaced precipitator controls in the Electrostatic Precipitator (ESP), placed heaters in the transformer cabinets to reduce moisture, and replaced portion of roof that was pitched improperly and was leaking.

7. In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Agreed Order.

II. ORDER

1. This Agreed Order shall be effective ("Effective Date") when it is approved by the Complainant or her delegate, and has been received by the Respondent. This Agreed Order shall have no force or effect until the Effective Date.

2. Respondent shall comply with 326 IAC 5-1-2.

3. All submittals required by this Agreed Order, unless notified otherwise in

writing, shall be sent to:

Lynne Sullivan, Enforcement Case Manager

Office of Enforcement

Indiana Department of Environmental Management

100 N. Senate Avenue

P. O. Box 6015

Indianapolis, IN 46206-6015

4. Respondent is assessed a civil penalty of Eleven Thousand Dollars ($11,000). Said penalty amount shall be due and payable to the Environmental Management Special Fund within 30 days of the Effective Date of this Agreed Order.

5. Civil penalties are payable by check to the Environmental Management Special Fund. Checks shall include the Case Number of this action and shall be mailed to:

Cashier

Indiana Department of Environmental Management

100 N. Senate Avenue

P. O. Box 7060

Indianapolis, IN 46207-7060

6. In the event that the civil penalty required by Order paragraph 4 is not paid within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1-101. The interest shall continue to accrue until the civil penalty is paid in full.

7. This Agreed Order shall apply to and be binding upon the Respondent, its successors and assigns. The Respondent's signatories to this Agreed Order certify that they are fully authorized to execute this document and legally bind the parties they represent. No change in ownership, corporate, or partnership status of the Respondent shall in any way alter its status or responsibilities under this Agreed Order.

8. In the event that any terms of the Agreed Order are found to be invalid, the remaining terms shall remain in full force and effect and shall be construed and enforced as if the Agreed Order did not contain the invalid terms.

9. The Respondent shall provide a copy of this Agreed Order, if in force, to any subsequent owners or successors before ownership rights are transferred. Respondent shall ensure that all contractors, firms and other persons performing work under this Agreed Order comply with the terms of this Agreed Order.

10. This Agreed Order shall remain in effect until Respondent has complied with the terms of Order paragraph No. 4.

11. This Agreed Order resolves all matters identified in the May 29, 2002 Notice of Violation and raised in the findings of fact set forth above.

TECHNICAL RECOMMENDATION: RESPONDENT:

Department of Environmental Management State Line Energy, LLC

By: _________________________ By: _________________________

David P. McIver

Chief, Air Section Printed: ______________________

Office of Enforcement

Title: ________________________

Date: ________________________ Date: ________________________

COUNSEL FOR COMPLAINANT: COUNSEL FOR RESPONDENT:

Department of Environmental Management

By: _________________________ By: ________________________

Office of Legal Counsel

Date: _______________________ Date: ______________________

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS _____ DAY OF ____________________, 20__.

For the Commissioner:

Signed 2/27/03

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs