STATE OF INDIANA

COUNTY OF MARION

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SS:

BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

STEEL DYNAMICS, INC.,

Respondent.

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Case No. 2004-14228-H




 

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 Steel Dynamics, Inc. (“Respondent”), which operates the facility with U.S. EPA ID No. INR 000019364, located at 2601 County Road 700 East in Columbia City, Whitley 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,  IDEM issued a Notice of Violation and Amended Notice of Violation via Certified Mail to:

 

Keith E. Busse, President and Registered Agent for

Steel Dynamics, Inc.

6714 Pointe Inverness Way, Ste. 200

Fort Wayne, IN  46804

 

5.                  Respondent notified the U.S. EPA of Large Quantity Generator activities on December 1, 2003.  Respondent produces carbon steel for structural and rail use.

 

6.                  An inspection on April 19, 2004 was conducted at the Site and a record review was conducted on November 8, 2004 by representatives of IDEM’s Office of Land Quality (“OLQ”).  The following violations were in existence or observed at the time of this inspection and record review:

 

a.                  Pursuant to 40 CFR 262.11, a person who generates a solid waste must determine if that waste is hazardous.

 

As noted during the inspection, Respondent failed to make hazardous waste determinations on refractory wastes generated from furnace, ladle, and tundish maintenance.  Multiple refractory products are used in the facility’s processes, thereby generating multiple refractory wastestreams.  At the time of the inspection, Respondent was sending the refractory wastes from the melt shop directly to slag processing and mixing it with the slag debris.  This slag debris, including refractory wastes, was used on-site in several applications including road construction and product storage areas.

 

Respondent submitted analytical results for three (3) refractory wastestreams on July 12, 2005.

 

b.                  Pursuant to 40 CFR 262.34(a)(4) referencing 40 CFR 265.31, facilities must be maintained and operated to minimize the possibility of a fire, explosion, or any unplanned sudden or non-sudden release of hazardous waste to the air, soil, or surface water, which could threaten human health or the environment.

 

As noted during the inspection, Respondent failed to properly manage baghouse dust (K061) hazardous waste to minimize the possibility of a release of hazardous waste to the environment.  Baghouse dust was observed on the ground outside the silo/baghouse loading areas.

 

Respondent indicated at a settlement conference between the parties on February 23, 2005, that prior to issuance of the NOV, the baghouse dust at these areas has been cleaned up, that a concrete pad has been placed at these areas, and that additional measures have been added to minimize the possibility of a future release. 

 

c.                  Pursuant to IC 13-30-2-1(1), no person shall discharge, emit, cause, allow, or threaten to discharge, emit, cause, or allow any contaminant or waste, including any noxious odor, either alone or in combination with contaminants from other sources, into the environment.

 

As noted during the inspection, Respondent allowed contaminants, baghouse dust (K061), into the environment on the ground outside the silo/baghouse loading areas.

 

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.

 

As noted during the inspection, Respondent did not provide an integrity assessment for the silo containing electric arc furnace baghouse dust (K061).

 

e.                  Pursuant to 40 CFR 262.34(a)(1)(ii) referencing 40 CFR 265.195, a generator must inspect tank systems once each operating day and maintain records of the daily inspections.

 

As noted during the inspection, Respondent did not conduct the required inspections of the silo/baghouse.  Baghouse dust (K061) was observed on the ground outside the silo/baghouse loading areas, indicating that inspections had not been conducted of the areas.

 

f.                    Pursuant to 40 CFR 262.34(a)(2), a generator may accumulate hazardous waste on-site for 90 days or less without a permit, provided that the date when the accumulation begins is clearly marked and visible for inspection on each container.

 

As noted during the inspection, Respondent failed to provide one (1) 25-cubic yard roll-off containing K061 hazardous waste, located on the north side of the baghouse/silo area, with the date when accumulation began.

 

g.                  Pursuant to 40 CFR 262.34(a)(3), a generator may accumulate hazardous waste on-site for 90 days or less without a permit, provided that the containers and tanks are marked with the words "Hazardous Waste."

 

As noted during the inspection, Respondent failed to label one (1) 25-cubic yard roll-off containing K061 hazardous waste and the silo containing electric arc furnace baghouse dust (K061) with the words “Hazardous Waste.”  Respondent labeled the 25-cubic yard roll-off at the time of the inspection.

 

h.                  Pursuant to 329 IAC 10-3-1(16), any other use of solid waste not listed in 329 IAC 10-3-1 must be approved by the Commissioner.

 

As noted during the record review, the Commissioner did not approve Respondent’s use of refractory wastes.

 

Since the date of the inspection, Respondent has discontinued adding refractory wastes generated from furnace, ladle, and tundish maintenance to the slag debris.

 

According to Respondent, any slag debris currently stockpiled on-site, including that which had refractory wastes added to it, has less than one percent of refractory.

 

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 his delegate, and has been received by the Respondent.  This Agreed Order shall have no force or effect until the Effective Date.

 

2.                  Within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall submit analytical results as described in the March 22, 2006 sampling plan (with the addition of a fourth sampling point through the concrete added after the inspection), demonstrating adequate cleanup of the area detailed in Finding 6.b. above.  If IDEM reasonably determines that the results submitted by Respondent do not demonstrate adequate cleanup, Respondent shall provide IDEM with analytical results demonstrating adequate cleanup within thirty (30) days after notice from IDEM that the initial results are inadequate.

 

3.                  Upon the Effective Date of this Agreed Order, Respondent shall take the following actions for the silo containing electric arc furnace baghouse dust (K061):

 

i.                     Perform daily inspections for baghouse dust potentially spilled or tracked from the silo;

 

ii.                   Perform the clean up of spilled or tracked baghouse dust from the silo noted during the daily inspections;

 

iii.                  Maintain records of the daily inspections;

 

iv.                 Ensure that the baghouse dust does not remain in the silos for more than 90 days;

 

v.                   Maintain records of baghouse dust removal every 90 days;

 

vi.                 Maintain the concrete pad under the silo to provide containment for a potential spill of at least twenty cubic yards of baghouse dust; and

 

vii.                Label the silo with the words, "Hazardous Waste."

 

4.                  Upon the Effective Date of this Agreed Order, Respondent shall continue to manage refractory wastes separate from the slag debris.  Respondent shall ensure that the refractory wastes are either recycled or properly transported and disposed.   The use of the slag debris stockpiled on-site which had refractory wastes added to it may be used as a base in the construction of on-site roads provided it is covered with asphalt.  This material will have a base thickness of approximately twenty-four (24) inches and will be covered with three (3) to four (4) inches of a base asphalt material, and then covered with an additional inch of asphalt road surface material.  Respondent shall maintain written records of the plans and/or specifications on-site until completion of the project.  Any slag debris stockpiled on-site which had refractory wastes added to it but cannot be used for this project shall be sent to a recycler or disposed at a permitted disposal facility by December 31, 2006.

 

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

 

Brenda Lepter, Enforcement Case Manager

Indiana Department of Environmental Management

Office of Enforcement

Mail Code 60-02

100 N. Senate Avenue

Indianapolis, IN 46204-2251

 

6.                  Respondent is assessed a civil penalty of Twenty Thousand Seven Hundred Dollars ($20,700).  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 2

$1000 per week late

 

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:

 

Indiana Department of Environmental Management

Cashier’s Office - Mail Code 50-10C

100 N. Senate Avenue

Indianapolis, IN 46204-2251

 

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.              Notwithstanding any other provision of this Agreed Order, the Complainant reserves, and this Agreed Order is without prejudice to, Complainant’s right to institute a new action for injunctive relief, costs and/or remediation of environmental contamination that is discovered after entry into this Agreed Order or that was not adequately remedied under this Agreed Order despite compliance by Respondent with the terms of this Agreed Order.  The determination of whether remediation is required shall be made in accordance with Complainant’s Risk Integrated System of Closure (RISC) as in effect as of the date of entry of this Agreed Order.

 

12.              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.

 

13.              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.

 

14.              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.

 

15.              This Agreed Order shall remain in effect until IDEM issues a Resolution of Case letter to Respondent.

 

16.              IDEM shall issue a Notice of Dismissal to Respondent for the Amended NOV issued on April 20, 2006, in Case No. 2004-14228-H(a) within five (5) days of the Effective Date of this Agreed Order.

 

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

 

, 200

 

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For The Commissioner:

 

 

 

Signed on May 30, 2006

 

Matthew T. Klein

 

Assistant Commissioner for

 

Compliance and Enforcement