STATE OF INDIANA

COUNTY OF MARION

)
)
)


SS:

BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

STEEL DYNAMICS, INC.,

Respondent.

)
)
)
)
)
)
)
)
)
)






Case No. 2008-17817-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 steel minimill, with I.D. No. 033-00043, and the direct reduced iron facility (“Iron Dynamics Division”), with 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 (“NOV”) on July 31, 2008 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 submitted a letter on June 11, 2007 disclosing emissions from safety relief valves (known as “eCaps”) that may not have been considered in prior permit applications and Best Available Control Technology (BACT) analyses related to the Rotary Hearth Furnace and Submerged Arc Furnace at the Site.

 

6.                  On April 1, 2009, Respondent waived the Notice of Violation and settlement period of sixty (60) days provided for by IC 13-30-3-3 relative to the eCap emissions disclosure.

 

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

 

a.         Pursuant to 326 IAC 2-2, Construction Permit No. 033-9187-00043 and Condition D.1.2(c) of Part 70 Permit No. 033-8086-00043, particulate matter and particulate matter 10 microns or less in aerodynamic diameter (“PM/PM10”) emissions from the continuous casters shall be controlled by canopy hoods and exhausted to the Electric Arc Furnace baghouse to Stack 01.

 

Respondent failed to control PM/PM10 emissions from the continuous casters as a result of redirecting the exhaust air flow to the building roof monitors, in violation of 326 IAC 2-2, Construction Permit No. 033-9187-00043 and Condition D.1.2(c) of Part 70 Permit No. 033-8086-00043.

 

b.         Pursuant to Construction Permit No. 033-8091-00043 and Condition D.1.18(a) of Part 70 Permit No. 033-8086-00043, Respondent shall perform visible emission notations of the melt shop building openings, dust handling system and melt shop roof monitors once per day during normal daylight operations when exhausting to the atmosphere and a trained employee shall record whether emissions are normal or abnormal.  Pursuant to Condition D.1.21(c) of Part 70 Permit No. 033-8086-00043, Respondent shall maintain records of visible emission notations of the melt shop building openings, dust handling system and melt shop roof monitors once per day.

 

Respondent failed to perform and/or record visible emission notations of the melt shop openings, in violation of Construction Permit No. 033-8091-00043 and Conditions D.1.18(a) and D.1.21(c) of Part 70 Permit No. 033-8086-00043.

 

c.         Pursuant to Construction Permit No. 033-8091-00043, 40 CFR 60.274a and Condition D.1.20 of Part 70 Permit No. 033-8086-00043, Respondent shall calibrate and maintain a device that allows the pressure in the free space inside the electric arc furnace to be monitored and shall check and record the furnace static pressure on a once per shift basis if the direct shell evacuation control (“DEC”) system is in use to control emissions during any phase of the furnace heat time.

 

Respondent failed to install a device to monitor the furnace static pressure and failed to check and record the furnace static pressure, in violation of Construction Permit No. 033-8091-00043, 40 CFR 60.274a and Condition D.1.20 of Part 70 Permit No. 033-8086-00043.

 

d.         Pursuant to IC 13-30-2-1(7), a person may not construct, install, operate, conduct, or modify, without prior approval of the department, any equipment or facility of any type that may cause or contribute to pollution or be designed to prevent pollution.

 

Pursuant to 326 IAC 2-2-10, the owner or operator of a proposed major stationary Prevention of Significant Deterioration (“PSD”) source or PSD modification shall submit all information necessary to perform any analysis or make any determination required under the PSD rule.

 

Respondent failed to submit all necessary information related to potential emissions from safety relief valves, known as “eCaps”, in the PSD permit application(s) and Best Available Control Technology analyses for the Rotary Hearth Furnace and Submerged Arc Furnace, in violation of IC 13-30-2-1(7) and 326 IAC 2-2-10.

 

e.         Pursuant to Construction Permit No. 033-8091-00043, Condition D.1.14 of Part 70 Permit No. 033-12614-00076 and 326 IAC 2-2-3, the afterburner for control of carbon monoxide and volatile organic compounds shall be in operation and control emissions from the Rotary Hearth Furnace at all times the Rotary Hearth Furnace is in operation except as provided in D.1.9(c)(2) during periods of startup and shutdown.

 

Respondent failed to control carbon monoxide and volatile organic compound emissions from eCAP safety relief valves during normal operation of the Rotary Hearth Furnace, in violation of Construction Permit No. 033-8091-00043, Condition D.1.14 of Part 70 Permit No. 033-12614-00076 and 326 IAC 2-2-3.

 

f.          Pursuant to Construction Permit No. 033-9187-00043, Condition D.3.7 of Part 70 Permit No. 033-12614-00076 and 326 IAC 9-1, Respondent shall not allow the discharge of carbon monoxide from the Submerged Arc Furnace unless the waste gas stream is controlled by a thermal oxidizer.

 

Pursuant to Construction Permit No. 033-9187-00043, Condition D.3.13 of Part 70 Permit No. 033-12614-00076 and 326 IAC 2-2-3, the thermal oxidizer for carbon monoxide control shall be in operation and control carbon monoxide emissions from the Submerged Arc Furnace at all times the Submerged Arc Furnace is in operation.

 

Respondent failed to control carbon monoxide emissions from eCAP safety relief valves during normal operation of the Submerged Arc Furnace, in violation of Construction Permit No. 033-9187-00043, Conditions D.3.7 and D.3.13 of Part 70 Permit No. 033-12614-00076, 326 IAC 9-1 and 326 IAC 2-2-3.

 

g.         Pursuant to Significant Source Modification No. 033-15955-00076, Condition D.3.1(a) of Part 70 Permit No. 033-12614-00076 and 326 IAC 2-2-3, Respondent shall not allow particulate matter emissions from the Submerged Arc Furnace to exceed 0.0032 grains per dry standard cubic foot of air flow at Stack 58.

 

Pursuant to Construction Permit No. 033-9187-00043, Condition D.3.12(a) of Part 70 Permit No. 033-12614-00076 and in order to comply with D.3.1(a), Respondent shall control particulate emissions from the Submerged Arc Furnace with the wet venturi scrubber at all times the Submerged Arc Furnace is in operation.

 

Respondent failed to control particulate matter emissions from eCAP safety relief valves during operation of the Submerged Arc Furnace, in violation of Construction Permit No. 033-9187-00043, Significant Source Modification No. 033-15955-00076, Conditions D.3.1(a) and D.3.12(a) of Part 70 Permit No. 033-12614-00076, and 326 IAC 2-2-3.

 

8.                  Respondent submitted a permit application to IDEM for consideration of the excess emissions from the eCAP safety relief valves on September 10, 2008.

 

9.                  This Agreed Order, and compliance with its terms and conditions, shall resolve all violations listed in Findings of Fact Paragraph Nos. 5 or 7 and/or cited in the Notice of Violation issued to Respondent on July 31, 2008.

 

10.             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: control PM/PM10 emissions from the continuous casters with the caster canopy hoods directed to the EAF baghouse as required by Condition D.1.2(c) of Part 70 Permit No. 033-8068-00043; perform and record visible emission notations of the melt shop openings according to Conditions D.1.18(a) and D.1.21(c) of Part 70 Permit No. 033-8068-00043; and monitor the furnace static pressure as indicated in Condition D.1.20 of Part 70 Permit No. 033-8068-00043.

 

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

 

Janusz Johnson, Enforcement Resource Manager

Office of Air Quality, Compliance and Enforcement Branch

Mail Code 61-50

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

4.                  Respondent is assessed a civil penalty of Thirty Three Thousand Six Hundred dollars ($33,600).  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.

 

5.                  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

 

6.                  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.

 

7.                  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.

 

8.                  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.

 

9.                  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.

 

10.             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.

 

11.             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 July 31, 2008 Notice of Violation or this Agreed Order.

 

12.             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.

 

13.             This Agreed Order shall remain in effect until Respondent complies with the terms of Order Paragraph No. 4.  IDEM will issue a Resolution of Case letter to Respondent thereafter.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

Steel Dynamics, Inc.

 

 

 

By:

 

 

By:

 

 

Roger Letterman, Chief

 

Printed:

 

 

Compliance and Enforcement Section 3

 

Title:

 

 

Office of Air Quality

 

 

 

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

 

, 2009.

 

 

For the Commissioner:

 

 

 

Signed on June 11, 2009

 

Daniel Murray

 

Assistant Commissioner

 

Office of Air Quality