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. 2002-11508-A

)

KEIHIN IPT MFG., INC., )

)

Respondent. )

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.

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 Keihin IPT MFG., Inc. ("Respondent"), which owns and operates mineral spirits machining and washing operations, identified as Unit 4, controlled by a thermal oxidizer, at its automotive components manufacturing facility, located at 400 West New Road in Greenfield, Indiana, Hancock County ("Site").

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 January 30, 2003, IDEM issued a Notice of Violation via Certified Mail to:

Mr. Stephen A. Claffey Mr. Jitsuro Ikeshita

Incorporator Registered Agent

Keihin IPT MFG., Inc. For Keihin IPT MFG., Inc.

300 N. Meridian Str., Ste. 2700 400 West New Road

Indianapolis, IN 46204 Greenfield, IN 46140

5. A review of the results of the stack tests, conducted at the Site on May 15, 2001, and November 7, 2001, was performed by a representative of IDEM's Office of Air Quality (OAQ). The following violations were in existence or observed at the time of these results:

A federally enforceable state operating permit ( FESOP) number F059-9160-00013, issued on May 29, 1998, condition D.2.1(b) requires that the thermal oxidizer shall be operating all the times the mineral spirits machining and washing operations are in operation, and maintain a minimum operating temperature of 1400F or a temperature, determined during a compliance test, shown to achieve a minimum overall 85% VOC destruction efficiency.

During a stack test, conducted at the Respondent's facility on May 15 and November 7, 2001, Respondent failed to achieve a minimum of 85% overall VOC destruction efficiency, while operating the machining washing operation, a violation of the FESOP condition D.2.1(b).

6. Respondent removed the non-compliant mineral spirits washing machines from the Site in August, 2002.

7. In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Agreed 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 all the terms and conditions of the FESOP, all its subsequent modifications and amendments.

3. All submittals required by this Agreed Order, unless notified otherwise in writing, shall be sent to:

Mr. Michael Stonik, 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 Seven Thousand Dollars ($7,000.00). 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 penalty is payable by check to the Environmental Management Special Fund. Checks shall include the Cause Number of this action and shall be mailed to:

Cashier

IDEM

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 of this Agreed Order, 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 all terms and conditions of this Agreed Order.

TECHNICAL RECOMMENDATION: RESPONDENT:

Department of Environmental Management Keihin IPT MFG., Inc.

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

Department of Environmental

Management

Date: Date:

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS DAY OF , 200 .

For the Commissioner:

Signed on May 23, 2003

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs