STATE OF INDIANA

COUNTY OF MARION

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BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

MICHELIN NORTH AMERICA, INC.,

Respondent.

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Case No. 2006-16237-A

 

 

AGREED ORDER

 

Complainant and 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 (“IDEM”), a department of the State of Indiana created by Indiana Code (“IC”) 13-13-1-1.

 

2.                  Respondent is Michelin North America, Inc. (“Respondent”), which owns and operates BF Goodrich Tire Manufacturing, a rubber tire manufacturing plant with United States Environmental Protection Agency (EPA) ID No. 003-00008, Title V Permit No. 003-5974-00008 (“Permit”), located on US Highway 24 East in Woodburn, Allen County, Indiana (“Site”).

 

3.                  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 on January 16, 2007 via Certified Mail to:

 

James Micali, President

CT Corporation System

Michelin North America, Inc.

Registered Agent for Michelin North America, Inc.

One Parkway South

251 E. Ohio Street Suite 1100

Greenville, SC 29602

Indianapolis, IN  46204

 

5.                  During an investigation conducted by a representative of IDEM as the result of an application submitted on November 4, 2004, the following violations were found:

 

a.         Pursuant to 326 IAC 2-7-10.5(a), an owner or operator of a Part 70 source proposing to construct new emission units shall submit a request for a modification approval in accordance with that section.  Pursuant to 326 IAC 2-7-10.5(e)(1), the source may not begin construction on any emissions unit that is necessary to implement the modification until the commissioner has approved the modification request.

 

Respondent constructed twenty-two (22) tire curing presses prior to obtaining source modification approval.  Three (3) of the tire curing presses were constructed in 2001 and nineteen (19) of the tire curing presses were constructed between August 2003 and June 2004.  Approval for the construction of these emission units was requested in the application submitted by the Respondent on November 4, 2004.  Constructing these emission units prior to obtaining the appropriate permitting was in violation of 326 IAC 2-7-10.5 (a) and (e)(1).

 

b.         Pursuant to 326 IAC 2-7-10.5(e)(3), operation of a modification for a source that has a Part 70 permit may commence in accordance with 326 IAC 2-7-12.  Pursuant to 326 IAC 2-7-12, significant modification procedures shall be used for applications requesting Part 70 permit modifications that do not qualify as minor permit modifications or as administrative amendments.  Significant Part 70 permit modifications shall meet all requirements of the rule, including those for application, public participation, review by affected states, and review by the U.S. EPA.


Respondent commenced operation of the twenty-two (22) tire curing presses prior to obtaining a Part 70 permit modification in violation of 326 IAC 2-7-12.

 

6.                  In recognition of the settlement reached, Respondent waive 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 Complainant or Complainant’s delegate, and has been received by Respondent.  This Agreed Order shall have no force or effect until the Effective Date.

 

2.                  Respondent shall comply with permitting requirements in 326 IAC 2-2 and 326 IAC 2-7.

 

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

 

Janusz Johnson, Enforcement Case Manager

Office of Enforcement – Mail Code 60-02

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

4.                  Respondent is assessed a civil penalty of Ninety Nine Thousand dollars ($99,000).  Within thirty (30) days of the Effective Date of the Agreed Order, Respondent shall pay a portion of this penalty in the amount of Nineteen Thousand Eight Hundred dollars ($19,800).  Said penalty amount shall be due and payable to the Environmental Management Special Fund.  In lieu of payment of the remaining civil penalty, Respondent shall perform and complete a Supplemental Environmental Project (“SEP”).  Respondent estimates that this SEP will cost Two Hundred Forty Thousand dollars ($240,000).  Within thirty (30) days of completing this SEP, Respondent shall submit written notice and documentation to IDEM which substantiates all actions taken and costs incurred with respect to the SEP.  In the event that the cost of the SEP is less than Two Hundred Forty Thousand dollars ($240,000), Respondent shall pay thirty three percent (33%) of the difference between the proposed cost of the SEP and the actual cost of the SEP.

 

5.                  As a Supplemental Environmental Project, Respondent shall incorporate the following Sidewall Extrusion Line components into the existing closed loop cooling system at the Site:  veneer extruder, white rubber extruder, PTH extruder, black rubber extruder, cooling bath, and three (3) mills.  Respondent shall order all materials and complete work required to be done during process shutdown by no later than December 31, 2007.  Respondent shall complete any additional installation necessary by no later than April 30, 2008, and shall cease to cool the Sidewall Extrusion Line with well water by no later than May 15, 2008.  Implementation of this SEP will result in an estimated reduction of 36,000 gallons per day of groundwater usage from the local aquifer.

 

6.                  In the event that the Respondent does not complete the SEP by May 15, 2008, the full amount of the civil penalty as stated in Order Paragraph No. 4 above, plus interest established by IC 24-4.6-1-101 on the remaining amount, less the portion of the civil penalty Respondent has already paid, will be due within fifteen (15) days from Respondent's receipt of IDEM’s notice to pay.  Interest, at the rate established by IC 24-4.6-1-101, shall be calculated on the amount due from the date which is thirty (30) days after the Effective Date of this Agreed Order until the full civil penalty is paid.

 

7.                  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:

 

Indiana Department of Environmental Management

Cashier – Mail Code 50-10C

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

8.                  This Agreed Order shall apply to and be binding upon Respondent and its successors and assigns.  Respondent’s signatories to this Agreed Order certify that they are fully authorized to execute this Agreed Order and legally bind the party they represent.  No change in ownership, corporate, or partnership status of Respondent shall in any way alter its status or responsibilities under this Agreed Order.

 

9.                  In the event that any terms of this 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 this Agreed Order did not contain the invalid terms.

 

10.             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.

 

11.             This Agreed Order is not and shall not be interpreted to be a permit or a modification of an existing permit.  This Agreed Order, and IDEM’s review or approval of any submittal made by Respondent pursuant to this Agreed Order, shall not in any way relieve Respondent of its obligation to comply with the requirements of its applicable permit or any applicable Federal or State law or regulation.

 

12.             Complainant does not, by its approval of this Agreed Order, warrant or aver in any manner that Respondent’s compliance with any aspect of this Agreed Order will result in compliance with the provisions of any permit, order, or any applicable Federal or State law or regulation.  Additionally, IDEM or anyone acting on its behalf shall not be held liable for any costs or penalties Respondent may incur as a result of Respondent’s efforts to comply with this Agreed Order.

 

13.             Nothing in this Agreed Order shall prevent or limit IDEM’s rights to obtain penalties or injunctive relief under any applicable Federal or State law or regulation, except that IDEM may not, and hereby waives its right to, seek additional civil penalties for the same violations specified in the NOV.

 

14.             Nothing in this Agreed Order shall prevent IDEM from communicating with the EPA or any other agency or entity about any matters relating to this enforcement action.  IDEM or anyone acting on its behalf shall not be held liable for any costs or penalties Respondent may incur as a result of such communications with the EPA or any other agency or entity.

 

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

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

Michelin North America, Inc.

 

 

 

By:

 

 

By:

 

 

Craig Henry

 

Printed:

 

 

Chief, Air Section

 

Title:

 

 

Office of Enforcement

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

 

 

 

COUNSEL FOR COMPLAINANT:

 

COUNSEL FOR RESPONDENT:

For the Department of Environmental Management

 

 

 

 

 

By:

 

 

By:

 

 

 

 

 

 

 

Deputy Attorney General

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 2007.

 

 

For the Commissioner:

 

 

 

Signed on August 6, 2007

 

Robert B. Keene

 

Assistant Commissioner

 

Office of Legal Counsel and Enforcement