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STATE
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BEFORE THE INDIANA DEPARTMENT |
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COMMISSIONER OF THE DEPARTMENT Complainant, v. LOUIS DREYFUS AGRICULTURAL
INDUSTRIES LLC, Respondent. |
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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 Louis Dreyfus Agricultural
Industries LLC (“Respondent”), which owns and operates the soybean oil
production facility and bio-diesel production facility with the Title V Permit
No. 085-21297-00102, located at 7344 State Rd. 15 South, in Claypool, Kosciusko
County, Indiana (“Site”).
3.
IDEM has jurisdiction over the parties and
the subject matter of this action.
4.
Respondent waives issuance of Notice of
Violation and to the settlement period of sixty (60) days provided for by
IC13-30-3-3.
5.
During records review and stack test
observations conducted by a representatives of IDEM, the following violations
were found:
a. Pursuant to Part 70 Permit No. 085-26363-00102,
Condition D.4.1 (b), Respondent’s biodiesel manufacturing process is limited to
0.63 lbs/hr of VOCs for 1,000 hours, per twelve (12) consecutive months during
methanol tank loading. This condition also limits the Respondent’s biodiesel
manufacturing process to 0.30 lbs/hr of VOCs during normal operations.
During a stack test conducted at Stack
# 5 on October 29, 2008, Respondent demonstrated a VOC emissions rate of 2.36
lbs/hr for the biodiesel manufacturing process during methanol tank loading and
a VOC emissions rate of 1.66 lbs/hr for the biodiesel manufacturing process during
normal operation, in violation of Condition D.4.1 (b) of Permit, 085-25147-00102.
b. Pursuant to Condition D.3.4 (a) of Part
70 Permit, 085-21297-00102, Respondent is required to maintain an overall
solvent loss ratio of 0.136 gal VOC/ton of soybeans processed for the first twelve
month period after startup.
Respondent, for the first twelve months, failed to maintain the overall solvent
loss ratio of 0.136 gal VOC/ton of soybeans processed, as required in violation
of Condition D.3.4 (a) of Part 70 Permit, 085-21297-00102.
c. Pursuant
to Part 70 Permit 085-21297-00102, Condition C.21, General Reporting
Requirements, Respondent shall submit a quarterly deviation and compliance
monitoring report or its equivalent within thirty (30) days of the end of the
reporting period. The first report shall
cover the period commencing on the date of issuance of this permit and ending
on the last day of the reporting period.
Respondent failed to submit the first, second, third and fourth quarters’ of
2006 quarterly deviation and compliance monitoring reports. Respondent failed to submit the first and
second quarters’ 2007 quarterly deviation and compliance monitoring reports. The failure to submit these reports is in
violation of Condition C.21 of Part 70 Permit No. 085-21297-00102.
d. Pursuant to Part 70 Permit No. 085-21297-00102,
Condition B.13, Respondent shall submit annually a compliance certification
report which addresses the status of the source’s compliance with the terms and
conditions contained in their permit.
The initial certification is to cover the time period from the date of
final permit issuance through December 31st of the same year. Each
annual compliance certification is to be submitted in letter form no later than
July 1st of each year.
Respondent
failed to submit the annual compliance certification for 2006 by July 1, 2007, in
violation of Condition B.13 of permit No. 08521297-00102.
e. Pursuant to 326 IAC 12, 40 CFR Part 60.,
Subpart Db (referencing) 40 CFR 60.8 and Condition D.5.10 of Part 70 Permit No.
085-21297-00102, Respondent is required to conduct RATA performance testing no
later than 180 Days after startup for the distillation operations.
Respondent’s initial startup of the distillation operations was on November 30,
2007. Therefore, RATA performance testing was required on or before May 29,
2008. Respondent conducted the required performance testing after the
compliance date on October 8, 2008, in violation of 326 IAC 12, 40 CFR Part 60.
Subpart Db and Condition D.5.10 of Permit No. 085-21297-00102.
f. Pursuant to Part 70 Permit No. 085-21297-00102,
Condition B.14, Respondent shall prepare and maintain a Preventative
Maintenance Plan within ninety (90) days from permit issuance which was January
24, 2006.
Respondent prepared and maintained the
Preventative Maintenance Plan beginning on December 23, 2008, after the
compliance date of April 24, 2006, in violation of Condition B.14 of Permit No.
085-21297-00102.
g. Pursuant to Part 70 Permit No. 085-21297-00102,
Condition C.15 Respondent shall submit an Emergency Reduction Plan within one
hundred and eighty (180) days, after the source commence operation, which was
November 30, 2007.
Respondent
submitted the Emergency Reduction Plan on October 9, 2009, after the compliance
date of May 29, 2008 in violation of Condition C.15 of permit No. 085-21297-00102.
h. Pursuant to 40 CFR 63.6(e) (3), 63.2852,
Conditions D.3.13, D.3.14 of Part 70 Permit No. 085-21297-00102, Respondent must
develop and implement a written Startup Shutdown Malfunction Plan upon startup
of the facility which was November 30, 2007 and submit all reports as required
under 40 CFR 63.2861.
Respondent failed
to develop a written Startup Shutdown Malfunction Plan upon startup of the
facility and submitted the first Startup Shutdown Malfunction report on April
30, 2008, in violation of 40 CFR 63.6(e) (3), 63.2852, 63.2861 and Conditions
D.3.13, D.3.14 of Part 70 Permit No. 085-21297-00102.
i Pursuant
to 40 CFR 63, Subpart FFFF
(Miscellaneous Organic Chemical Manufacturing) and Part 70 Permit No. 085-27442-00102,
Section F.2.1 and F.2.2 of Part 70 Permit No. 085-27442-00102, Respondent was required to submit an Initial
Notification and be in compliance upon startup of the Bio Diesel facility under
63.2445 by the compliance date of February 7, 2008.
Respondent
submitted the required Initial
Notification on February 10, 2010 which stated that the source was in
compliance with 40 CFR 63, Subpart FFFF on January 25, 2010. This submittal,
after the compliance date, is in violation of sections F.2.1 and F.2.2
of Permit No. 085-27442-00102 and the general provisions of 40 CFR 63, Subpart
FFFF, Miscellaneous Organic Chemical
Manufacturing.
6.
In recognition of compliance efforts made by
the Respondent the Respondent has submitted or completed the following:
a.
Respondent has completed the installation of
the Mineral Oil Scrubber controlling Hexane emissions from Stack No. 5 to
resolve the violation of Condition D.4.1 (b).
b.
Respondent has demonstrated compliance with
the overall solvent loss ratio requirement in Condition D.3.4 (a) on December
31, 2009.
c.
Respondent has submitted all record keeping
and reporting requirements as required in Condition B.13, Annual Compliance
Certification and Condition C.21, General
Reporting Requirements of Part 70 Permit No. 085-21297-00102.
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 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 all permit
conditions in Part 70 Source Operating Permit No. 085-21297-00102, modifications
25147 and 27442 to this permit and
rules and regulations, listed in the findings here and/or above at issue.
3.
All submittals required by this Agreed Order,
unless Respondent is notified otherwise in writing by IDEM, shall be sent to:
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Richard
Reynolds, Compliance and Enforcement Manager |
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Compliance
and Enforcement Branch – Mail Code 61-53 |
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Indiana
Department of Environmental Management |
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100
North Senate Avenue |
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Indianapolis,
IN 46204-2251 |
4.
Supplemental Environmental Project (SEP): Respondent is assessed a civil penalty of One
Hundred Three Thousand Seven Hundred Fifty Dollars ($103,750.00). Within thirty (30) days of the Effective Date
of the Agreed Order, Respondent shall pay a portion of this penalty in the
amount of Forty-Nine Thousand Seven Hundred Sixty-Seven Dollars ($49,767.00).
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 Phase 1 of the SEP will cost a minimum of Sixty-Two
Thousand Dollars ($62,000.00). Within thirty (30) days of completing Phase 1 of
the SEP, Respondent shall submit written notice and documentation to IDEM which
substantiates all actions taken and costs incurred with respect to the
development of Phase 1 of the SEP. In the event that the cost of the
development of Phase 1 of the SEP is less than ($62,000.00), Respondent shall
pay 100% of the difference between the proposed cost of Phase 1 of the SEP,
($62,000.00) and the actual cost of Phase 1 of the SEP.
As
a Supplemental Environmental Project, Respondent shall develop an ISO 14001:
2004 Environmental Management System (EMS) as a Pollution Prevention SEP for
the Claypool facility (“Phase 1”) and implement the EMS for at least one full
EMS cycle (“Phase 2”) immediately following Phase 1. Respondent shall: have
the EMS audited by a qualified RAB ISO 14001:2004 Lead Auditor after to
implementation; the Respondent must assume 100% regulatory compliance upon
development of Phase 1 and implementation of Phase 2 of the SEP; submit
quarterly updates to IDEM regarding the status of EMS development and implementation;
provide IDEM with a copy of the EMS manual, with trade secrets and other
confidential business information redacted; and provide invoices for EMS
development to confirm that the minimum acceptable expense as determined by
offset ratio has been accounted for.
ISO 14001: 2004 Environmental Management System development is to be completed and implementation to begin no later than one year after the
Effective Date of this Agreed Order. Respondent shall implement the EMS for at least one full EMS cycle
with identification and reporting of performance results on two or more EMS
targets and objectives within thirty (30) days of the completion of the first
full EMS cycle.
Implementation of this SEP will benefit the surrounding community by reducing
the environmental impact of the Claypool facility and provide a model for
industry throughout the state.
In the event that Respondent does not
complete the EMS manual within one year after the Effective Date of this Order,
have the EMS audited by a qualified RAB ISO 14001:2004 Lead Auditor and
complete the implementation of an EMS cycle one year after the development of the audited EMS, the full
amount of the civil penalty as stated in paragraph #1 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.
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:
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Indiana
Department of Environmental Management |
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Cashier
– Mail Code 50-10C |
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100
North Senate Avenue |
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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 this Agreed Order.
12.
Nothing in this Agreed Order shall prevent
IDEM, or anyone acting on its behalf, 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 has complied with all terms and conditions of this Agreed
Order and IDEM issues a Resolution of Case Letter to Respondent.
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TECHNICAL
RECOMMENDATION: |
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RESPONDENT: |
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Department
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LOUIS
DREYFUS CORPORATION |
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By: |
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By: |
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David
Lawrence, Deputy Director |
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Northern
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COUNSEL
FOR COMPLAINANT: |
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COUNSEL
FOR RESPONDENT: |
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For
the Department of Environmental Management |
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By: |
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By: |
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Deputy
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APPROVED
AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL |
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MANAGEMENT THIS |
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DAY OF |
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2011. |
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For
the Commissioner |
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Signed
on January 11, 2011 |
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Keith
Baugues, Assistant Commissioner |
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Indiana
Department of Environmental Management |
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