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. 2003-12702-H
					)
LONE STAR 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 Lone Star Industries, Inc. ("Respondent"), which owns and operates the facility with U.S. EPA ID No. IND 006 419 212, located at 3301 South County Road in Greencastle, Putnam County, Indiana (“Site”).

3. The Indiana Department of Environmental Management (“IDEM”) has jurisdiction over the parties and the subject matter of this action.

4. As a result of information obtained during an investigation, IDEM made a preliminary determination that violations of the Indiana Administrative Code (329 IAC 3.1) existed, and issued a Notice of Violation that set forth the alleged violations.

5. Pursuant to IC 13-30-3-3, on May 22, 2003, IDEM issued a Notice of Violation via Certified Mail to:

Michael B. Clark, President	C.T. Corporation System
Lone Star Industries, Inc.	Registered Agent for:
10401 North Meridian Street	Lone Star Industries, Inc.
Suite 400	One North Capitol Avenue
Indianapolis, Indiana 46290	Indianapolis, Indiana 46204

6. Pursuant to IC 13-30-3-3, on May 24, 2004, IDEM issued an Amended Notice of Violation via Certified Mail to the above parties.

7. Respondent notified the U.S. EPA of Large Quantity Generator; Boiler Industrial Furnace; Used Oil Generator; Treatment, Storage, and Disposal; and Hazardous Waste Fuel Marketing activities, first in August of 1980 and most recently in February of 1996. The container and tank storage areas are interim status units.

Respondent operates a cement kiln that produces Portland cement in a rotary kiln. Hazardous waste and used oil are received from off-site generators/fuel blenders and are temporarily stored in tanks and containers prior to use as a fuel in cement manufacturing.

8. An inspection on October 22, 2002 was 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 this inspection:

a. Pursuant to 40 CFR 265.13(b), the owner or operator must develop and follow a written waste analysis plan which describes the procedures which will be carried out to comply with paragraph (a) of this section. Respondent off-loaded waste into Tank 4, which contained residue that had not been tested for compatibility with the new load of waste.

b. Pursuant to 40 CFR 265.17(b), where specifically required by other sections of this part, the treatment, storage, or disposal of ignitable or reactive waste, and the mixture or commingling of incompatible wastes, or incompatible wastes and materials, must be conducted so that it does not:

1. generate extreme heat or pressure, fire or explosions, or violent reaction;

2. produce uncontrolled toxic mists, fumes, dusts, or gases in sufficient quantities to threaten human health;

3. produce uncontrolled flammable fumes or gases in sufficient quantities to pose a risk of fire or explosions;

4. damage the structural integrity of the device or facility containing the waste; or

5. through other like means threaten human health or the environment.

On October 7, 2002, Respondent commingled waste in Tank 4, which resulted in the production of heat and the activation of the emergency vent. After the incident, Respondent revised its waste analysis plan and submitted a copy of the plan to IDEM on October 30, 2002.

c. Pursuant to 40 CFR 265.56(j), the owner or operator of a hazardous waste facility must note in the operating record the time, date, and details of any incident that requires implementing the contingency plan. The owner or operator must then submit to the Commissioner a written report on the incident within 15 days after the incident. Respondent provided the inspector with a copy of an Accident/Incident Investigation Form that facility staff prepared two days after the incident. This form contained some, but not all, of the information required by 40 CFR 265.56(j). On November 14, 2002, Respondent provided IDEM with the required incident report. This report contained all of the required information.

9. 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. Upon the Effective Date of this Agreed Order, Respondent shall ensure that the revised waste analysis plan is followed at all times.

3. Within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall examine all emergency water supply sources at the facility to ensure that there will not be a disruption in supply during emergencies. Respondent shall submit to IDEM a report of its findings on the condition of emergency water supplies.

4. In the future, Respondent shall ensure that all required notifications are provided to IDEM within the required times.

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

Aubrey N. Sherif

Senior Environmental Manager

Hazardous Waste Section

Office of Enforcement

Indiana Department of Environmental Management

100 N. Senate Avenue

P. O. Box 6015

Indianapolis, IN 46206-6015

6. Respondent is assessed a civil penalty of Fifteen Thousand Dollars ($15,000). 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.

7. 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	Penalty
Failure to comply with Order paragraph # 3	$100.00 per week

8. 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.

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:

Cashier

IDEM

100 N. Senate Avenue

P. O. Box 7060

Indianapolis, IN 46207-7060

10. In the event that the civil penalty required by Order paragraph 6 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 IDEM issues a Resolution of Case letter to Respondent.

TECHNICAL RECOMMENDATION:		RESPONDENT:
Department of Environmental Management
By:	_____________________________	By:	______________________________
	Nancy L. Johnston, Chief	Printed:	______________________________
	Office of Enforcement	Title:	_____________________________
Date:	_____________________________	Date:	______________________________
COUNSEL FOR COMPLAINANT:		COUNSEL FOR RESPONDENT:
Department of Environmental Management		Sommer Barnard Ackerson, PC
By:	_____________________________	By:	______________________________
	Office of Legal Counsel
Date:	_____________________________	Date:	______________________________

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS _____ DAY OF _______________, 2004.

For the Commissioner:

Signed on December 9, 2004

Felicia A. Robinson

Deputy Commissioner for

Legal Affairs