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. 2002-12334-H
)
REILLY INDUSTRIES, 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. 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 Reilly Industries, Inc. ("Respondent"), which owns and operates the company with U.S. EPA ID No. IND 000 807 107, located at 1500 South Tibbs Avenue in Indianapolis, Marion 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 March 3, 2003, IDEM issued a Notice of Violation via Certified Mail to:
Robert D. McNeeley, President Anne Frye, Registered Agent
Reilly Industries, Inc. Reilly Industries, Inc.
300 North Meridian Street 300 North Meridian Street
Suite 1500 Suite 1500
Indianapolis, Indiana 46204 Indianapolis, Indiana 46204
5. Respondent last notified the U.S. EPA of Large Quantity Generator and Treatment, Storage, and Disposal activities on January 15, 1997. IDEM first issued Respondent a hazardous waste management permit on May 28, 1982. Respondent has since been operating continuously under the permit, which is periodically updated and revised.
Respondent manufactures synthetic pyridine derivatives including pyridine, picolines (methyl pyridines), vinyl pyridines, niacinamide, and other related compounds. These products are sold to other industries as chemical intermediates in the manufacture of pharmaceutical, agricultural, and cosmetic products.
6. Inspections on June 13, 14, and 17, 2002, were conducted at the Site by a representative of IDEM’s Office of Land Quality ("OLQ"). The following violations were in existence or observed at the time of these inspections:
a. Pursuant to 40 CFR 262.11, a person who generates a solid waste must determine if that waste is hazardous. Respondent did not make hazardous waste determinations on the following waste:
1. One 5-gallon bucket located in Plant 47. The material in this bucket was disposed of before its proper regulatory status could be determined. Subsequent to the inspection, Respondent notified IDEM that a hazardous waste determination had been made, and that the waste was hazardous.
2. A cloudy white material in ponded water by a steam vent on Tank 772. During the inspection, maintenance staff informed Respondent's Environmental Specialist that the cloudy water by Tank 772 was from a non-hazardous cleaning detergent used in recent repair work.
b. Pursuant to 40 CFR 262.34(a)(2), a generator may accumulate hazardous waste on-site for 90 days or less without a permit, provided that the date when the accumulation begins is clearly marked and visible for inspection on each container. Respondent did not mark the following containers and tanks with the accumulation start dates:
1. The catalyst hopper in Plant 27.
2. Three portable tanks in Plant 47.
This violation was corrected at the time of the inspection.
c. Pursuant to 40 CFR 262.34(a)(3), a generator may accumulate hazardous waste on-site for 90 days or less without a permit, provided that containers are marked with the words "Hazardous Waste." Respondent failed to mark three portable tanks in Plant 47 with the words "Hazardous Waste." This violation was corrected during the inspection.
d. Pursuant to 40 CFR 262.34(c)(i)(ii), a generator may accumulate as much as 55 gallons of hazardous waste at or near the point of generation without a permit and without complying with 40 CFR 262.34(a), provided that the containers are marked with the words hazardous waste or other words describing the contents. Respondent failed to properly label two satellite accumulation drums located in the lab building. This violation was corrected during the inspection.
e. Pursuant to 40 CFR 262.34(a)(1)(i) referencing 40 CFR 265.173(a), a container holding hazardous waste must always be closed during storage, unless necessary to add or remove waste. Respondent did not store a 5-gallon container of hazardous waste closed. This violation was corrected at the time of the inspection.
f. Pursuant to 40 CFR 273.15, a small quantity handler of universal waste may accumulate universal waste for no longer than one year from the date the waste is generated, unless the handler can prove that such activity is solely for the purpose of accumulations of such quantities of universal waste as necessary to facilitate proper recovery, treatment, or disposal. A box of 8-foot spent bulbs was dated May 8, 2001, and therefore exceeded the allowable accumulation time.
g. Pursuant to Permit Condition II.A and 40 CFR 264.265.31, the generator shallPermitee maintain and operate the facility to minimize the possibility of a fire, explosion, or any unplanned sudden or non-sudden release of a hazardous waste to the air, soil, or surface water, which could threaten human health or the environment. Respondent was not operating the facility in a manner to minimize releases, as demonstrated by the following:Satellite buckets containing hazardous waste were uncovered in the tank farm areas, allowing the possibility of organic releases to the air and overflows during rain events.
2. The catalyst hopper that receives hazardous waste from Plant 27 operations has no overflow or splash protection. A shift operator stated that "waste is dumped into the box each shift, which may generate as little as a gallon of waste or up to enough to fill the container. "
· 3. Wastewater treatment plant filtercake, potentially hazardous, is left outside in a gravel area in uncovered roll-offs. At the time of the inspection, filtercake was observed on the ground next to an uncovered, partially filled roll-off of wastewater treatment plant filtercake. 4. A satellite drum in the lab building was labeled "chlorinated", yet Respondent indicated that it was actually non-chlorinated waste.
hj. Pursuant to IC 13-30-2-1(4), no person shall deposit or cause or allow the deposit of any contaminants or solid waste upon the land, except through the use of sanitary landfills, incineration, composting, garbage grinding, or another method acceptable to the solid waste management board. The following two releases were observed at the facility:
1.A broken sewer line (carrying D002 and/or D018/D038 waste) resulted in a release of wastewater to the lot next to the wastewater treatment plant. 2 Filtercake was deposited on the ground beside roll-off # 443, which was uncovered and partially filled with wastewater treatment filtercake.
32. Discolored gravel was observed next to Tank 781 where a spill had recently occurred.
ki. Pursuant to 40 CFR 265.196(d), a generator must report to the Commissioner any releases from a tank, within twenty-four hours from the time the generator becomes aware of the circumstances. Respondent did not notify IDEM of a release from a tank.
lj. Pursuant to Permit Condition I.H.(2) and Attachment VIII H-1a, the Permittee shall maintain at the facility, until closure is completed and certified by the owner/operator and an independent registered professional engineer, personnel training documents and records as required by 40 CFR 264.16(d) and (e), and the conditions of this permit. Specifically, the Permitee must maintain records of the names, titles, duties, and qualifications of Reilly employees involved in hazardous waste. Respondent did not maintain the following training records:
1. All job titles for positions at the facility related to hazardous waste management, and the name of each employee filling each job.
2. A written job description for each hazardous waste management position which includes the requisite skill, education, qualifications, and duties assigned to each position.
3. Records documenting that all employees have received the required training.
Since the inspection, Respondent has submitted to IDEM some of the
required training records.
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. In the future, Respondent shall comply with 40 CFR 262.11. Specifically, Respondent shall ensure that proper hazardous waste determinations are made on all waste streams.
3. In the future, Respondent shall comply with 40 CFR 262.34(a)(2). Specifically, Respondent shall ensure that all containers of hazardous waste are labeled with accumulation start dates.
4. In the future, Respondent shall comply with 40 CFR 262.34(a)(3). Specifically, Respondent shall ensure that all hazardous waste containers are marked with the words "Hazardous Waste."
5. In the future, Respondent shall comply with 40 CFR 262.34(c)(i)(ii). Specifically, Respondent shall ensure that all satellite accumulation drums are marked with the words "Hazardous Waste" or with other words identifying the contents.
6. In the future, Respondent shall comply with 40 CFR 262.34(a)(1)(i) referencing 40 CFR 265.173(a). Specifically, Respondent shall ensure that all containers holding hazardous waste are kept closed during storage, unless necessary to add or remove waste.
7. Upon the Effective Date of this Agreed Order, Respondent shall comply with 40 CFR 273.15. Specifically, Respondent shall not store universal waste on-site for longer than the allowed time.
8 Within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall submit to IDEM in writing an explanation of why universal waste was accumulated on-site for longer than the allowed time.
98. Within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall comply with 40 CFR 265.31. Specifically, Respondent shall submit to IDEM a description of how they plan to maintain and operate the facility to minimize releases to the environment. 10. Upon the Effective Date of this Agreed Order, Respondent shall comply with IC 13-30-2-1(1), (2) and (4). Specifically, Respondent shall immediately take steps to halt all releases to the environment.
Within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall submit to IDEM a report identifying the cause of the wastewater release, the amount of wastewater released, the time of release, how the wastewater was handled, to where the wastewater was pumped or hauled, and corrective action to be used to repair the pipeline.
9. Within thirty (30) days of the Effective Date of this Agreed Order, 12Respondent
shall submit to IDEM the following information to address the release in the area around roll-off #443 and the area around Tank 781 where discolored gravel was observed:
a. documentation on how the releases were addressed and cleaned up;
b. an explanation of how future releases are to be minimized and prevented; and
c. an explanation of how the recent releases impact the ongoing cleanup of the site as described in the Superfund Consent Decree with EPA.
1019. In the future, Respondent shall comply with 40 CFR 265.196(d).Permit Condition I.D.(14). Specifically, Respondent shall notify IDEM of all facility releases which exceed one pound, in accordance with terms of the permit.
2211. All submittals required by this Agreed Order, unless notified otherwise in
writing, shall be sent to:
Aubrey N. Sherif
Senior Environmental Manager
Office of Enforcement
Indiana Department of Environmental Management
100 N. Senate Avenue
P. O. Box 6015
Indianapolis, IN 46206-6015
2312. Respondent is assessed a civil penalty of Twenty Seven Thousand, Eight Hundred Dollars ($27,800). 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.
2413. 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 8 $500 per week
Failure to comply with Order paragraph 9 $500 per week
Failure to comply with Order paragraph 12 $500 per week
Failure to comply with Order paragraph 13 $500 per week
Failure to comply with Order paragraph 14 $500 per week
Failure to comply with Order paragraph 15 $500 per week
Failure to comply with Order paragraph 16 $100 per week
Failure to comply with Order paragraph 17 $100 per week
Failure to comply with Order paragraph 18 $100 per week
Failure to comply with Order paragraph 20 $100 per week
Failure to comply with Order paragraph 21 $100 per week
14. 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.
15. 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
16. In the event that the civil penalty required by Order paragraph 12 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.
17. 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.
18. 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.
19. 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.
3120. 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 _______________, 2003.
For the Commissioner:
Adopted October 20, 2003
Felicia A. Robinson
Deputy Commissioner for
Legal Affairs