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. 2006-16367-A
                 2007-17535-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.  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 (“IDEM”), a department of the State of Indiana created by Indiana Code (“IC”) 13-13-1-1.

 

2.                  Respondent is Steel Dynamics, Inc. (“Respondent”), which owns and operates the direct reduced iron facility (“Iron Dynamics Division”), with Plant I.D. No. 033-00076, located at 4500 County Road 59 in Butler, DeKalb 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 for Case No. 2006-16367-A on February 14, 2007 via Certified Mail to:

 

Mr. Keith Busse, President & Registered Agent

Steel Dynamics, Inc.

6714 Pointe Inverness Way, Suite 200

Fort Wayne, Indiana 46804

 

5.                  Respondent waives issuance of a Notice of Violation and the settlement period of sixty (60) days as provided for by IC 13-30-3-3 related to Case No. 2007-17535-A regarding the compliance stack test for volatile organic compounds (“VOC”) conducted on the Submerged Arc Furnace (“SAF”) stack on February 20, 2007.

 

6.                  During an investigation conducted by a representative of IDEM, the following violations were found:

 

a.         Pursuant to 326 IAC 2-2-3 and Condition D.1.9 of Significant Source Modification (“SSM”) No. 033-15955-00076, the particulate matter/particulate matter 10 microns or less in diameter (“PM/PM10”) emissions from the SAF stack shall not exceed 0.0032 grains per dry standard cubic foot (“gr/dscf”).

 

On July 13, 2006, compliance stack testing was conducted on the SAF stack which indicated that PM/PM10 emissions exceeded the allowable levels.  The measured PM/PM10 concentration during the test was 0.021 gr/dscf, in violation of 326 IAC 2-2-3 and Condition D.1.9 of SSM No. 033-15955-00076.

 

Respondent maintains that the limit in Condition D.1.9 of SSM No. 033-15955-00076 is for filterable-only PM-10.

 

b.         Pursuant to 326 IAC 2-2-3 and Condition 25 of Construction Permit (“CP”) No. 033-9187-00043, the carbon monoxide (“CO”) emissions from the SAF stack shall not exceed 1.26 pounds per ton (“lbs/ton”).

 

On July 13, 2006, compliance stack testing was conducted on the SAF stack which indicated that CO emissions exceeded the allowable levels.  The measured CO emission level during the test was 4.24 lbs/ton, in violation of 326 IAC 2-2-3 and Condition 25 of CP No. 033-9187-00043.

 

c.         Pursuant to Condition 26 of CP No. 033-9187-00043, the VOC emissions from the SAF stack shall not exceed 0.035 lb/ton.

 

On July 13, 2006, compliance stack testing was conducted on the SAF stack which indicated that VOC emissions exceeded the allowable levels.  The total VOC measured as propane emission level during the test was 0.129 lb/ton, in violation of Condition 26 of CP No. 033-9187-00043.

 

On February 20, 2007, compliance stack testing was conducted on the SAF stack which indicated that VOC emissions exceeded the allowable levels.  The total VOC measured as propane emission level during the test was 0.42 lb/ton, in violation of Condition D.3.5 of Part 70 Operating Permit and Construction Permit No. 033-9187-00043.

 

7.                  On February 20, 2007, compliance stack testing was conducted on the SAF stack which indicated compliance with the applicable limits for PM/PM10 and CO emissions.

 

8.                  This Agreed Order, and compliance with its terms and conditions, shall resolve all violations listed in Findings of Fact Paragraph No. 6 and/or cited in the Notice of Violation issued to Respondent on February 14, 2007.

 

9.                  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 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 the PM/PM10 emission limitation for the SAF in Condition D.3.1 of the Part 70 Operating Permit No. 033-12614-00076, issued on October 4, 2006, (“Part 70 Permit”) and the CO emission limitation for the SAF in Condition D.3.6 of the Part 70 Permit.

 

3.                  Within Sixty (60) days of the Effective Date of this Agreed Order, Respondent shall submit a permit application for review of the VOC emission limitation on the SAF in Condition D.3.5 of the Part 70 Operating Permit and Condition 26 of CP No. 033-9187-00043.

 

Permit applications shall be submitted to IDEM’s Air Permits Administration at the address below with a copy to the Office of Enforcement:

 

IDEM Air Permits Administration

ATTN: Incoming Application

100 North Senate Avenue

MC 61-53, IGCN 1003

Indianapolis, IN 46204-2251

 

4.                  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

 

5.                  Respondent is assessed a civil penalty of Forty Five Thousand Six Hundred Twenty Five dollars ($45,625).  Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date.  In the event that the civil penalty is not paid within thirty (30) days of the Effective Date, 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.

 

6.                  In the event the terms and conditions of Order Paragraph No. 3 are violated, Complainant may assess and Respondent shall pay a stipulated penalty of Five Hundred dollars ($500) per day for each day or part thereof after the deadline stated in Order Paragraph No. 3 until the application required by Order Paragraph No. 3 is submitted.

 

7.                  Stipulated penalties shall be due and payable within thirty (30) days after Respondent receives written notice that Complainant has determined a stipulated penalty is due.  Assessment and payment of stipulated penalties shall not preclude Complainant from seeking any additional relief against Respondent for violation of this Agreed Order.  In lieu of any of the stipulated penalties set out above, 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:

 

Indiana Department of Environmental Management

Cashier – Mail Code 50-10C

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

9.                  This Agreed Order shall apply to and be binding upon Respondent and its successors and assigns.  Respondent’s signatory to this Agreed Order certifies that he or she is fully authorized to execute this Agreed Order and legally bind Respondent.  No change in ownership, corporate, or partnership status of Respondent shall in any way alter its status or responsibilities under this Agreed Order.

 

10.             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.

 

11.             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.

 

12.             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.

 

13.             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.

 

14.             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 February 14, 2007 Notice of Violation or this Agreed Order.

 

15.             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.

 

16.             This Agreed Order shall remain in effect until Respondent complies with the terms of Order Paragraph Nos. 3 and 5.  IDEM will issue a Resolution of Case letter to Respondent thereafter.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

Steel Dynamics, Inc.

 

 

 

By:

 

 

By:

 

 

Craig Henry, Chief

 

Printed:

 

 

Air Section

 

Title:

 

 

Office of Enforcement

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

 

 

 

COUNSEL FOR COMPLAINANT:

 

COUNSEL FOR RESPONDENT:

For the Department of Environmental Management

 

as to form only:

 

 

 

By:

 

 

By:

 

 

 

 

 

 

 

Deputy Attorney General

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 2008.

 

 

For the Commissioner:

 

 

 

Signed on July 8, 2008

 

Robert B. Keene

 

Assistant Commissioner

 

Office of Legal Counsel and Enforcement