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. 2004-14147-A
					)
Southern Indiana Gas and Electric					)
Company, a.k.a. Vectren Power					)
Supply, Inc., a.k.a. SIGECO/Vectren,					)
F. B. Culley Generation Station,					)
					)
	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 Southern Indiana Gas and Electric Company, a.k.a. Vectren Power Supply, Inc., a.k.a. SIGECO/Vectren (“Respondent”), which owns and operates the number 2 Unit at its F. B. Culley Generation Station with federal ID number 173-00001 located at 3711 Darlington Road in Newburgh, Warrick 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:

Mr. William S. Doty, President	Ronald E. Christian, Registered Agent
SIGECO/Vectren	for SIGECO/Vectren
20 NW Fourth Street	20 NW Fourth Street, P. O. Box 209
Evansville, IN 47708	Evansville, IN 47702

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

Pursuant to 326 IAC 6-2-3, and pursuant to condition No. 5 of Operation Permit No. 87-01-90-0093 issued on March 18, 1986, as amended by the December 21, 1998, IDEM’s letter, the total particulate matter (PM) emissions from Unit 2 shall be limited to 0.38 lb/MMBtu of energy input.

During the December 19, 2003, stack test conducted at Unit 2, the PM emissions were 0.393 lb/MMBtu, violations of 326 IAC 6-2-3 and condition No. 5 of Operation Permit No. 87-01-90-0093 as amended by the December 21, 1998, IDEM’s letter.

6. Respondent conducted a re-test on March 30, 2004. The re-test results indicated compliance.

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 326 IAC 6-2-3 and conditions of Operation Permit No. 87-01-90-0093 as amended by the December 21, 1998, IDEM’s letter.

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

Michael Stonik, Enforcement Case Manager

Office of Enforcement

Indiana Department of Environmental Management

100 N. Senate Avenue

P. O. Box 6015

Indianapolis, IN 46206-6015

4. 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

5. 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

Indiana Department of Environmental Management

100 N. Senate Avenue

P. O. Box 7060

Indianapolis, IN 46207-7060

6. In the event that the civil penalty required by Order paragraph 4 of this Agreed Order 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.

7. 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.

8. 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.

9. 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.

10. 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		SIGECO/Vectren
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 ____________________, 20__.

For the Commissioner:

Signed on February 8, 2005

Linda Runkle

Assistant Commissioner

for Legal Affairs