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. 2002-11853-A

)

HARTSON-KENNEDY CABINET TOP CO., INC., )

)

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.

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 Hartson-Kennedy Cabinet Top Co., Inc. ("Respondent"), which owns and operates adhesive spray booths at its stationary wood cabinet top manufacturing facility, located at 522 West 22^nd Street in Marion, Indiana, Grant 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 November 26, 2002, IDEM issued a Notice of Violation via Certified Mail to:

Mr. William M. Kennedy

President and Registered Agent

Hartson-Kennedy Cabinet Top Co., Inc.

522 West 22^nd Street

Marion, IN 46953

5. A records review was conducted of the 2002 semi-annual compliance report and annual compliance certification for 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 records review:

A. Pursuant to 40 CFR 63.802(a)(2)(ii), Subpart JJ, a Part 70 operating permit number T053-9497-00032 (Permit), issued on May 26, 1999, condition D.1.2(b)(2) requires that Respondent shall limit volatile hazardous air pollutants (VHAP) content of foam adhesives used in products that meet the upholstered seating flammability requirements, to 1.8 pounds VHAP per pound of solids (lb VHAP/lb solids); and of all other contact adhesives, except aerosols and contact adhesives applied to nonporous substrates, to 1.0 lb VHAP/lb solids.

Based on the June 29, 2002, annual compliance certification report for the 2001 reporting period, and July 30, 2002, semi-annual report, VHAP content of contact coatings in May, 2001 through March, 2002 exceeded 1.0 lb VHAP/lb solids, and was 1.14 lb VHAP/lb solids, a violation of the Permit condition number D.1.2(b)(2) and 40 CFR 63.802(a)(2)(ii).

Pursuant to 40 CFR 63.802(a)(3), Subpart JJ, the Permit condition D.1.2(b)(3) requires that Respondent shall limit hazardous air pollutants (HAP) emissions from strippable spray booth coatings by using coatings that contain no more than 0.8 pounds of volatile organic compounds (VOC) per pound of solids (lb VOC/lb solids).

Based on the January 30, 2002, semi-annual report, in August and November, 2001, Respondent deviated from the compliance requirements, set in the permit condition D.1.2(b)(3), and used strippable spray booth coatings that contained 1.77 lb VOC/lb solids, a violation of the Permit condition D.1.2(b)(3) and 40 CFR 63.802(a)(3).

Pursuant to 326 IAC 2-7-5(3)(C)(ii), the Permit condition B.16 requires that Respondent shall report any deviations to IDEM's Office of Air Quality (OAQ) within ten (10) days from the date of the deviations discovery.

Respondent failed to notify OAQ concerning the VOC content deviations, described in paragraph B above, within the ten-day period, a violation of the Permit condition B.16.

6. 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 all the terms and conditions of the Part 70 operating permit number T053-9497-00032, issued on May 26, 1999, and with all subsequent amendments and modifications.

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 Twenty Thousand Two Hundred and Fifty Dollars ($20,250.00). 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 Hartson-Kennedy Cabinet Top Co., 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 April 28, 2003

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs