STATE OF INDIANA

COUNTY OF MARION

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BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

BEMIS COMPANY, INC.,

Respondent.

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Case No. 2003-12666-A

 

 

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 Bemis Company, Inc. ("Respondent"), which owns and/or operates the stationary polyethylene film plant with Plant ID No. 167-00033, located at 1350 North Fruitridge Avenue in Terre Haute, Vigo 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 October 26, 2004, IDEM issued a Notice of Violation via Certified Mail to:

 

Jeffrey Curler, President

CT Corporation System, Registered Agent

Bemis Company, Inc.

251 E. Ohio Street

222 S. 9th Street

Suite 1100

Suite 2300

Indianapolis, IN  46204

Minneapolis, MN  55402

 

 

5.               A records review was conducted of the Site by a representative of IDEM’s Office Air Quality (OAQ).  The following violations were in existence or observed at the time of this record review:

 

a.       Pursuant to 326 IAC 2-2, any owner or operator of a major stationary prevention of significant deterioration (“PSD”) source which makes a major PSD modification, resulting in a significant net emission increase of any pollutant regulated under the Clean Air Act, must apply for and obtain a PSD permit prior to commencing construction and operation.

The Respondent conducted several modifications resulting in significant increases in net emissions at the Site without first applying for and obtaining a PSD permit, violations of 326 IAC 2-2.

 

b.               Pursuant to 326 IAC 2-1-4, a source or facility which has allowable emissions of twenty-five (25) tons or more per year of any regulated pollutant shall apply for and obtain an operating permit prior to commencing operation.

The Respondent began operating several facilities at the Site without first applying for and obtaining an operating permit, violations of 326 IAC 2-1-4.

 

6.               On October 1, 2004, IDEM received a PSD permit application for presses 11 & 12.

 

7.               On March 18, 2005, IDEM received a PSD permit application for presses 13-25 and 27-35.

 

8.               As of August 2006, Respondent constructed permanent total enclosures on all applicable flexographic presses as required by draft Significant Permit Modification 167-21257-00033.

 

9.               The Respondent waives issuance of a Notice of Violation and to the settlement period of sixty (60) days as provided for by IC 13-30-3-3 for violations of 326 IAC 2-2 that occurred after the Notice of Violation issued on October 27, 2004.

 

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 his 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 2 and all conditions of its effective air permits.

 

3.               Respondent shall permanently remove flexographic printing press Nos. 6 and 7.  These presses pre-date the BACT requirements pursuant to 326 IAC 2-2 and VOC reductions pursuant to 326 IAC 8 and therefore are not required to be controlled.  Respondent shall remove these presses by no later than December 31, 2006.  It is estimated that removal of these presses will likely reduce VOC emissions from the Site by up to 128 tons per year.

 

4.               The VOC emissions reductions achieved by removal of press Nos. 6 and 7 shall not be used by Respondent for netting credit in any future permits, and shall not be sold, traded, or bartered to any other entity or used in an emissions trading program.

 

5.               Within fifteen (15) days of removing the presses, Respondent shall submit written notice and documentation to IDEM which substantiates the removal of the presses.

 

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

Lynne Sullivan, Enforcement Case Manager
Indiana Department of Environmental Management

Office of Enforcement – Mail Code 60-02

100 North Senate Avenue
Indianapolis, IN  46204-2251

 

7.               Respondent is assessed a civil penalty of One Hundred Ninety-Three Thousand, Two Hundred and Fifty Dollars ($193,250).  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 described below in this paragraph are violated, the Complainant may assess and the Respondent shall pay a stipulated penalty in the following amount:

 

Violation

Penalty

Failure to comply with Order paragraph 3

$230,175

 

9.               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:

 

Indiana Department of Environmental Management

Cashier’s Office - Mail Code 50-10C

100 North Senate Avenue

Indianapolis, Indiana  46204-2251

 

10.           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.

11.           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.

 

12.           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.

 

13.           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.

 

14.           This Agreed Order shall remain in effect until December 31, 2011.

 

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TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

Bemis Company, Inc.

 

 

 

By:

 

 

By:

 

 

David P. McIver

 

Printed:

James A. Russler

 

Chief, Air Section

 

Title:

President

 

Office of Enforcement

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

 

 

 

COUNSEL FOR COMPLAINANT:

 

COUNSEL FOR RESPONDENT:

Department of Environmental Management

 

 

 

 

 

By:

 

 

By:

 

 

 

 

 

Baker & Daniels, LLP

 

Office of Legal Counsel

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 2006.

 

 

For The Commissioner:

 

 

 

Signed on October 5, 2006

 

Matthew T. Klein

 

Assistant Commissioner

 

of Compliance and Enforcement