STATE OF INDIANA COUNTY OF MARION	) ) )	SS:	BEFORE THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT
COMMISSIONER OF THE DEPARTMENT OF ENVIRONMENTAL MANAGEMENT, Complainant, v. ADVANCED BEARING MATERIALS, LLC, Respondent.				) ) ) ) ) ) ) ) ) )	Case No. 2011-19849-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 Advanced Bearing Materials, LLC (“Respondent”), which owns and operates the facility with Plant ID No. 031-00002, located at 1515 West Main Street, in Greensburg, Decatur 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”) in conjunction with a Proposed Agreed Order on April 4, 2011.

5. During an investigation including an inspection on January 12, 2011 conducted by a representative of IDEM, the following violations were found:

a. Pursuant to 326 IAC 2-8-5 and permit condition D.1.7 of Federally Enforceable State Operating Permit (FESOP) No. 24769, when for any reading, the pressure drop across the baghouse used in conjunction with the CBS Line furnaces is outside the normal range established during the latest stack test, the Permittee shall take reasonable response steps. Failure to take response steps shall be considered a deviation from the permit.

Respondent failed to document taking appropriate response steps when pressure drop was out of range for their CBS Line baghouse during several periods of time over 2010, in violation of 326 IAC 2-8-5 and condition D.1.7 of FESOP No. 24769.

b. Pursuant to 326 IAC 2-8-5 and permit condition D.1.7 of Federally Enforceable State Operating Permit (FESOP) No. 24769, when for any reading, the pressure drop across the cyclone/bag filter combination used in conjunction with the CBS Line rough milling units is outside the normal range established during the latest stack test, the Permittee shall take reasonable response steps. Failure to take response steps shall be considered a deviation from the permit.

Respondent failed to document taking appropriate response steps when pressure drop was out of range for their rough milling cyclone/baghouse system during several periods of time over 2009 and 2010, in violation of 326 IAC 2-8-5 and condition D.1.7 of FESOP No. 24769.

6. Violation letters for failure to take appropriate corrective action for pressure drop readings that were outside of the permitted range on the CBS Cast Line baghouse and the Rough Milling cyclone/baghouse system were sent to the Respondent as a result of two previous inspections. These violation letters were sent on November 14, 2008 and August 8, 2005.

7. On May 11, 2011 the Respondent provided a detailed list of the equipment and/or process changes that have taken place in the past in an attempt to get the emission control system on the CBS Cast Line (Stack 8) into compliance with the required pressure drop ranges as specified in their permit. However, these changes have had no considerable lasting impact on the measured pressure drop as observed in the January 12, 2011 inspection.

· On April 10, 2010 the Respondent changed out all 640 bags in the CBS Cast Line baghouse system.

· After that point and during production down times, the CBS Cast Line baghouse blower was shut off to allow pulse cleaning of the bags. This lowered the readings but harmed the inside plant atmosphere, so this procedure was quickly halted.

· In November of 2010 the Respondent contracted with an outside firm to review the performance of the CBS Cast Line baghouse system. They identified the following issues and made the appropriate repairs or replacements:

- Air regulator supplying the south bank was leaking (lower air volume reduces pulse cleaning ability)

- Several diaphragms were ruptured

- One blow tube in the south bank and one in the north bank were dislodged completely

- Four additional tubes were not seated appropriately

· On January 5, 2011 the Respondent inspected the duct leading from the process to the outside CBS Cast Line baghouse system for excessive build up. The duct was inspected from the supply point above the furnace canopy to the cyclone prior to the baghouse dust collection system and very little buildup was found.

8. On May 11, 2011 the Respondent also provided a compliance plan for how they intend to ensure in the future that the emission control systems on the CBS Cast Line (Stack 8) and the Rough Milling Units (Stack 10) will operate in compliance with the required pressure drop ranges as specified in their permit.

CBS Cast Line

· On March 19, 2011 the purchase order was released for the expenses associated with the expansion of the current CBS Cast Line baghouse system. This project will add two additional filtration modules for a total of four. The system will be controlled to sequence the modules such that three modules will be online while the fourth is off line pulse cleaning without the interference of the blower.

· The permit modification application for the proposed CBS Cast Line baghouse expansion was received by IDEM on May 13, 2011 and the draft permit number is 30545.

Rough Milling Units

· On April 26, 2011 the Respondent installed a pressure switch into the pulse timing schematic for the emission control system on the Rough Milling Units. This was done to control when the pulse jets are activated in order to make sure that the control equipment is operating within the manufacturers specified and permitted pressure drop range.

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 statutes, rules, and/or permit conditions listed above at issue.

3. Within 180 days of the issuance of permit modification No. 30545, Respondent shall complete installation of the CBS Cast Line baghouse expansion as described in the Findings of Fact. If permit modification No. 30545 is denied, Respondent shall submit within 45 days of that denial, an alternate compliance plan and implementation timeline for how the Respondent will maintain compliance with the pressure drop range for the CBS Line baghouse system established in their permit and corroborated during the last compliance stack test.

4. If stack testing to demonstrate compliance with emission limits is required on the CBS Cast Line baghosue system as part of permit modification No. 30545; then within 60 days of completion of the required stack testing, Respondent shall submit to IDEM Office of Air Quality 45 days of pressure drop monitoring data from the emission control system on the CBS Cast Line (Stack 8); otherwise, the pressure drop data shall be submitted to IDEM within 60 days of the completion of the CBS Cast Line baghouse expansion.

5. Within 60 days of the Effective Date of the Order, Respondent shall submit to IDEM Office of Air Quality 45 days of pressure drop monitoring data from the emission control system on the Rough Milling Units (Stack 10).

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

Rebecca Hayes, Compliance and Enforcement Manager

Compliance and Enforcement Branch – Mail Code 61-53

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

7. Respondent is assessed a civil penalty of Nine Thousand Six Hundred Dollars ($9,600). 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.

8. In the event the terms and conditions of the following paragraphs are violated, Complainant may assess and Respondent shall pay a stipulated penalty in the following amount:

Paragraph	Violation	Stipulated Penalty
3	Failure to complete specified installation or provide documentation in the time frame required.	$500 per 30 day period
4	Failure to provide documentation in the time frame required.	$500 per 30 day period
5	Failure to provide documentation in the time frame required.	$500 per 30 day period

9. 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.

10. 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

11. 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 their status or responsibilities under this Agreed Order.

12. 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.

13. 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.

14. 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 their obligation to comply with the requirements of their applicable permit or any applicable Federal or State law or regulation.

15. 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.

16. 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.

17. 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.

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

TECHNICAL RECOMMENDATION:			RESPONDENT:
Department of Environmental Management			Advanced Bearing Materials, LLC
By:			By:
	Roger Letterman, Chief		Printed:
	Compliance and Enforcement Section 2		Title:
	Office of Air Quality
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		, 2011.
			For the Commissioner
			Signed on, 2011
			Keith Baugues, Assistant Commissioner
			Office of Air Quality
			Indiana Department of Environmental Management