STATE OF INDIANA		)	SS:	BEFORE THE INDIANA DEPARTMENT OF
		)
COUNTY OF MARION		)		ENVIRONMENTAL MANAGEMENT
COMMISSIONER OF THE DEPARTMENT					)
OF ENVIRONMENTAL MANAGEMENT,					)
					)
Complainant,					)
					)
	v.				)	Case No. 2004-13794-A
					)
PSEG LAWRENCEBURG ENERGY COMPANY 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 PSEG Lawrenceburg Energy Company LLC (Respondent), which owns and operates the merchant power plant located at 582 W. Eads Parkway, in Lawrenceburg, Dearborn 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 21, 2004 IDEM issued a Notice of Violation via Certified Mail to:

Frederick Pastor	CT Corporation System, Registered Agent
PSEG Lawrenceburg Energy Company, LLC	PSEG Lawrenceburg Energy Company, LLC
80 Park Plaza, 16^th Floor	251 East Ohio Street, Suite 1100
Newark, NJ 07102	Indianapolis, IN 46204

5. A stack test, on December 15, 2003, was conducted at the Site. The following violations were in existence or noted at the time of this stack test:

a. Pursuant to 326 IAC 2-2 and condition D.2.4 of permit No. 029-12517-00033 NO_x emissions from the auxiliary boiler shall not exceed 0.036 lbs. per million BTU on a higher heating value basis.

During a stack test, conducted at PSEG Lawrenceburg Energy on December 15, 2003, the average measured NO_x emissions rate from the auxiliary boiler was 0.0382 lbs. per million BTU, a violation of permit condition D.2.4.

6. A second stack test was conducted on January 5, 2004. During the second test, the average measured NO_x emissions rate from the auxiliary boiler was 0.0325 lbs. per million BTU, in compliance with condition D.2.4 of permit No. 029-12517-00033.

7. In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Agreed Order.

II. ORDER

8. 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.

9. Respondent shall comply with permit condition D.2.4 of permit No. 029-12517-00033 and 326 IAC 2-2.

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

Kristopher M. Grinnell, Enforcement Case Manager

Office of Enforcement

Indiana Department of Environmental Management

100 North Senate Avenue

Post Office Box 6015

Indianapolis, IN 46206-6015

11. Respondent is assessed a civil penalty of eleven thousand dollars ($11,000.00). 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.

12. 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

Indiana Department of Environmental Management

100 N. Senate Avenue

P.O. Box 7060

Indianapolis, IN 46207-7060

13. In the event that the civil penalty required by Order paragraph No. 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.

14. 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.

15. 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.

16. 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.

17. This Agreed Order shall remain in effect until Respondent has complied with all terms and conditions of this Agreed Order.

TECHNICAL RECOMMENDATION:			RESPONDENT:
Department of Environmental Management			PSEG Lawrenceburg Energy Company LLC
By:	___________________		By:		_____________
	David P. McIver
	Chief, Air Section		Printed:		_____________
	Office of Enforcement
			Title:		_____________
Date:	____________________		Date:		_____________
COUNSEL FOR COMPLAINANT:			COUNSEL FOR RESPONDENT:
Department of Environmental Management
By:	______________________		By:	________________
	Joseph H. Merrick
	Office of Legal Counsel
Date:	_____________________		Date:	________________
APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL
MANAGEMENT THIS		DAY OF				, 200	.
			For The Commissioner:
			Signed 11/14/05
			Matthew T. Klein
			Assistant Commissioner
			of Compliance and Enforcement