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. 2002-12331-H
)
NATIONAL STEEL CORPORATION, )
)
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 National Steel Corporation ("Respondent"), which owns and operates the facility with U.S. EPA ID No. IND 016 584 641, located at 6300 U.S. Highway 12 in Portage, Porter County, Indiana ("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 6, 2002, IDEM issued a Notice of Violation via Certified Mail to:
Mr. John A. Maczuzak, President CT Corporation System, Registered Agent
National Steel Corporation National Steel Corporation
4100 Edison Lakes Parkway 36 South Pennsylvania Street, Suite 700
Mishawaka, Indiana 46545 Indianapolis, Indiana 46204
5. Respondent notified the U.S. EPA of Large Quantity Generator/Treatment, Storage, and Disposal activities on August 15, 1980. Respondent is a steel finishing facility with pickling, cold working, annealing, coating, and electroplating processes.
6. Respondent was issued a Hazardous Waste Management Permit on January 26, 1996.
7. Respondent filed for bankruptcy under Chapter 11 of the Federal Bankruptcy Act on March 6, 2002.
8. On March 20, 2002, Respondent notified IDEM in writing that the Respondent could no longer satisfy the financial test to establish the financial liability coverage required by 329 IAC 3.1-15-8(a) and (b).
9. On July 1, 2002, a record review was conducted by a representative of IDEM’s Office of Land Quality ("OLQ"). The following violation was in existence or observed at the time of this record review:
Pursuant to 329 IAC 3.1-15-8(a) and (b), an owner or operator of a hazardous waste facility must demonstrate financial responsibility for bodily injury and property damage to third parties caused by sudden and nonsudden accidental occurrences arising from operations of the facility. Respondent did not establish financial liability coverage for the time period of March 31, 2002 to March 31, 2003.
10. 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. Within forty-five (45) days of the Effective Date of this Agreed Order, Respondent shall establish liability coverage for sudden and nonsudden occurrences totaling One Million Dollars ($1,000,000) in the aggregate. The liability coverage shall remain in effect until whichever of the following first occurs:
a. Respondent establishes financial liability coverage as required by 329 IAC 3.1-15-8(a) and (b) through the use of a different approved financial mechanism; or
b. Respondent's bankruptcy is dissolved, and within one hundred twenty (120) days after the close of the fiscal year during which the bankruptcy is dissolved, Respondent establishes liability coverage through either:
(1) A financial test mechanism to satisfy the financial liability coverage required by 329 IAC 3.1-15-8(a) and (b); or
(2) A different approved financial assurance mechanism to satisfy the financial liability coverage required by 329 IAC 3.1-15-8(a) and (b).
3. Within sixty (60) days of the Effective Date of this Agreed Order, Respondent shall submit documentation to IDEM to demonstrate that liability coverage has been established as required by paragraph 2.
4. Respondent shall maintain liquidity of no less than Fifty Million Dollars ($50,000,000).
5. Respondent shall, within thirty (30) days of the end of each financial quarter, submit a quarterly liquidity report to IDEM for review.
6. All submittals required by this Agreed Order, unless notified otherwise in writing, shall be sent to:
Ms. Lori Colpaert, Enforcement Case Manager
Office of Enforcement
Indiana Department of Environmental Management
100 N. Senate Avenue
P. O. Box 6015
Indianapolis, IN 46206-6015
7. Respondent is assessed a civil penalty of Six Thousand Seven Hundred Fifty Dollars ($6,750). Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date of this Agreed Order.
8. In the event the terms and conditions of the following paragraphs are violated, the Complainant may assess and the Respondent shall pay a stipulated penalty in the following amount:
Violation
PenaltyFailure to comply with Order paragraph 3 $500 per week documentation is late
Failure to comply with Order paragraph 5 $500 per week report is late
9. Stipulated penalties shall be due and payable within thirty (30) days after Respondent receives written notice that the Complainant has determined a stipulated penalty is due. Assessment and payment of stipulated penalties shall not preclude the Complainant from seeking any additional relief against the Respondent for violation of the Agreed Order. In lieu of any of the stipulated penalties given above, the Complainant may seek any other remedies or sanctions available by virtue of Respondent’s violation of this Agreed Order or Indiana law, including, but not limited to, civil penalties pursuant to IC 13-30-4.
10. Civil and stipulated 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
IDEM
100 N. Senate Avenue
P. O. Box 7060
Indianapolis, IN 46207-7060
11. In the event that the civil penalty required by Order paragraph 7 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.
12. 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.
13. 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.
14. 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.
15. This Agreed Order shall remain in effect until IDEM issues a Resolution of Case letter to Respondent.
TECHNICAL RECOMMENDATION: RESPONDENT:
Department of Environmental Management
By: __________________________ By: ________________________
Nancy L. Johnston, Chief
Office of Enforcement Printed: __________________
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 _______________, 2002.
For the Commissioner:
Adopted 2/11/03
___________________________
Felicia A. Robinson
Deputy Commissioner for
Legal Affairs