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. 2004-13748-A
					)
ROYAL ADHESIVES and SEALANTS LLC,					)
					)
	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 Royal Adhesives and Sealants LLC ("Respondent"), which owns and/or operates the stationary sealant and adhesive manufacturing plant with Plant ID # 141-00146, located at 2001 W. Washington Avenue, in South Bend, St. Joseph 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 May 3, 2004, IDEM issued a Notice of Violation via Certified Mail to:

Randy Greenlee, Plant Manager	CT Corporation System
Royal Adhesives and Sealants, LLC	Registered Agent
2001 W. Washington Ave.	36 S. Pennsylvania, Suite 700
South Bend, Indiana 46628	Indianapolis, Indiana 46204

5. An investigation 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 investigation:

a. Pursuant to 326 IAC 2-7-5, 326 IAC 2-7-6, 326 IAC 8-1-6 and permit T141-9909-00146 condition D.2.3(a) (Best Available Control Technology (BACT)), solvent-based churns shall be subject to BACT should their VOC potential emissions be greater than 25 tons VOC per year. Potential emissions from each churn is less than 25 tons VOC per year when total time of nitrogen purging for each batch is 5 minutes or less for adhesive churns and 30 minutes or less for sealant churns. To ensure that potential emissions remain below 25 tons VOC/year, adhesive churns shall be limited to a maximum total of 5 minutes of purging time per batch, and sealant churns shall be limited to a maximum total of 30 minutes of purging time per batch.

The Respondent exceeded the purge time limit for churn 8 on September 2, 2004, churn 9 on March 4, 2004, churn 22 on August 30, 2004, churn 25 on May 21, 2004, churn 55 on February 13, 2004, and churn 56 on August 9, 2004.

b. Pursuant to 326 IAC 2-7-5, 326 IAC 2-7-6 and permit T141-9909-00146 condition D.2.9 (Solvent-based Churns), the Permittee is required once each calendar year to observe and record the number of minutes during an entire cycle of mixing that each adhesive churn and each sealant churn purges when mixing a worst-case formula for that churn. This monitoring condition is necessary to ensure that maximum total minutes for batch purging shall remain no greater than 5 minutes/batch for adhesive churns and 30 minutes/batch for sealant churns, so that potential VOC emissions will remain < 25tons/year and BACT will not apply.

c. Pursuant to 326 IAC 2-7-5, 326 IAC 2-7-6 and permit T141-9909-00146 condition D.2.12 (Record Keeping Requirements), the Permittee is required to maintain the annual churn purge records for adhesive churns and sealant churns to document compliance with Condition D.2.3(a).

Respondent failed to perform the annual churn purge observations and recordings for 2000, 2001, 2002 and 2003, violations of permit T141-9909-00146 conditions D.2.9 and D.2.12.

6. Respondent re-tested in compliance with purge time limits for churn 25 on July 14, 2004 and churn 55 on July 27, 2004.

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 improve operations of churn numbers 8, 9, 22 and 56 and re-test these churns to determine compliance with permit T141-9909-00146 condition D.2.3 within thirty (30) days of the Effective Date of this Order.

3. Respondent shall submit to IDEM, a copy of the results of the testing required in Paragraph 2 within thirty-five (35) days of the Effective Date of this Order.

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

Lynne Sullivan, Enforcement Case Manager

Office of Enforcement

Indiana Department of Environmental Management

100 N. Senate Avenue

P. O. Box 6015

Indianapolis, IN 46206-6015

5. Respondent is assessed a civil penalty of Thirty-One Thousand Eight Hundred Dollars ($31,800). 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.

6. 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 2 Failure to comply with Order paragraph 3	$500 per week $500 per week

7. 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.

8. 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

9. In the event that the civil penalty required by Order paragraph 4 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 Respondent complies with the terms of Order paragraph No. 2.

TECHNICAL RECOMMENDATION:				RESPONDENT:
Department of Environmental Management				Royal Adhesives & Sealants LLC
By:	______________________________			By:		______________________________
	David P. McIver			Printed:		______________________________
	Chief, Air Section			Title:		______________________________
	Office of Enforcement
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 on January 27, 2005

Linda Runkle

Assistant Commissioner