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. 2004-13661-H
					)
CITGO PETROLEUM 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. 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 Citgo Petroleum Corporation ("Respondent"), which owns and operates the facility with U.S. EPA ID No. IND 095 267 381, located at 2500 East Chicago Avenue in East Chicago, Lake 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 July 14, 2004, IDEM issued a Notice of Violation via Certified Mail to:

Mr. Oswaldo Conteras, President	CT Corporation System, Registered Agent
Citgo Petroleum Corporation	Citgo Petroleum Corporation
6100 South Yale	36 South Pennsylvania Street, Suite 700
Tulsa, Oklahoma 74136	Indianapolis, Indiana 46204

5. Respondent notified the U.S. EPA of Large Quantity Generator activities on November 28, 1983. Respondent operates a bulk oil storage and distribution terminal.

6. An inspection on September 18, 2003 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 262.34(a)(4) referencing 40 CFR 265.51, a generator must have a contingency plan. Respondent did not have an adequate contingency plan.

On March 5, 2004, Respondent submitted a copy of the Table of Contents for the facility's contingency plan to IDEM for review.

b. Pursuant to 40 CFR 262.34(a)(4) referencing 40 CFR 265.16(d)(1-4), certain hazardous waste training related documents and records must be maintained on-site. Respondent did not maintain all of the required information on-site.

On March 5, 2004, Respondent submitted copies of training records which included job titles, written job descriptions, and descriptions of the training provided to facility personnel.

c. Pursuant to 40 CFR 262.34(a)(1)(ii) referencing 40 CFR 265.195, a generator must inspect tank systems once each operating day. Respondent did not conduct the required inspections for hazardous waste tank 88A.

d. Pursuant to 40 CFR 262.34(a)(1)(ii) referencing 40 CFR 265.192(a), a generator with a new tank system must have an integrity assessment certified by an independent, qualified, registered, professional engineer in accordance with 40 CFR 270.11(d) attesting that the system has sufficient structural integrity. Respondent did not provide the required integrity assessment for hazardous waste tank 88A.

e. Pursuant to 40 CFR 262.34(a)(1)(ii) referencing 40 CFR 265.193, all new and existing tank systems must have secondary containment. Respondent did not provide adequate secondary containment for hazardous waste tank 88A.

f. Pursuant to 329 IAC 13-4-3(d), generators must label all used oil containers and aboveground tanks with the words “Used Oil.” Respondent did not label used oil containers with the words “Used Oil.”

Respondent properly labeled the used oil containers with the words "Used Oil" during the inspection on September 18, 2003.

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. Respondent shall comply with 40 CFR 262.34(a)(4) referencing 40 CFR 265.51. Specifically, Respondent shall maintain a copy of the facility's contingency plan on-site and available for review by IDEM.

3. Respondent shall comply with 40 CFR 262.34(a)(1)(ii) referencing 40 CFR 265.195. Specifically, Respondent shall conduct the required daily inspections of tank 88A if the tank is used to store hazardous waste.

4. Respondent shall comply with 40 CFR 262.34(a)(1)(ii) referencing 40 CFR 265.192(a). Specifically, Respondent shall conduct an integrity assessment on hazardous waste tank 88A and submit a copy of the integrity assessment, certified by an independent, qualified, professional engineer to IDEM for review before the tank can be used to store hazardous waste.

5. Respondent shall comply with 40 CFR 262.34(a)(1)(ii) referencing 40 CFR 265.193. Specifically, Respondent shall provide secondary containment for tank 88A before the tank can be used to store hazardous waste.

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 Eleven Thousand Four Hundred Dollars ($11,400). 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. Civil 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

9. 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.

10. 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.

11. 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.

12. 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.

13. 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
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 11/17/04

Felicia A. Robinson

Deputy Commissioner for

Legal Affairs