STATE OF INDIANA		)	SS:	BEFORE THE INDIANA DEPARTMENT OF
		)
COUNTY OF MARION		)		ENVIRONMENTAL MANAGEMENT

COMMISSIONER OF THE DEPARTMENT					)
OF ENVIRONMENTAL MANAGEMENT,					)
					)
Complainant,					)
					)
	v.				)	Case No. 2011-20411-H
					)
ROLLS-ROYCE CORPORATION,					)
					)
Respondent.					)

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 Rolls-Royce Corporation (“Respondent”), which owns and/or operates a facility with United States Environmental Protection Agency (EPA) ID No. IND000806836, located at 2355 South Tibbs Avenue in Indianapolis, Marion 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) via Certified Mail to:

Mr. James M. Guyette, President	Corporation Service Company,
Rolls-Royce Corporation	Registered Agent for
1875 Explorer St. Suite 200	Rolls-Royce Corporation
Reston, VA 20190	251 E. Ohio St. Suite 500
	Indianapolis, IN 46204

5. Respondent notified EPA of Large Quantity Generator activities on February 21, 2006.

6. Respondent manufactures aircraft engines and components/parts for use in commercial and military aircraft.

7. 329 IAC 3.1 incorporates certain federal hazardous waste management requirements found in 40 CFR Parts 260 through 270, and Part 273 including these identified below.

8. During an investigation including inspections on June 15, July 14 and 15, 2011, conducted by a representative of IDEM, the following violations were found:

a. Pursuant to 40 CFR 262.11, a person who generates a solid waste must determine if that waste is hazardous.

As noted during the inspection, Respondent did not make hazardous waste determinations on the following:

1. two (2) open top plating baths stored outside near the far south end of Plant 5 next to the Heat Treat Area with small accumulations of unknown liquids within the baths;

2. one (1) approximately thirty (30) cubic yard roll-off container containing soil/media generated from a test cell process area; and

3. one (1) fifty-five (55) gallon drum located outside of the Plant 8 Maintenance Area near the northeast side of the concrete pad which were solid wastes generated by Respondent.

Subsequent to the inspection, Respondent made a waste determination on the above Items. The plating bath contents (D002) were removed and disposed of properly. The plating baths were then tripled rinsed and will be reused onsite. Respondent submitted Manifest Number 000410873WAS, documenting proper disposal. The soil/media was sampled July 18, 2011 and was determined to be non hazardous. Respondent submitted the lab results verifying this waste determination. The fifty-five (55) gallon drum identified in Item 8.a.3. above was determined to be improperly labeled “Hazardous Waste”. The drum contained non hazardous oil/mineral spirits. Respondent submitted the “Wastestream Survey”, February 10, 2012, provided by the facility’s disposal facility.

b. Pursuant to 40 CFR 261.4(c), a hazardous waste generated in a manufacturing process unit is not subject to regulation under parts 262 through 265, 268, 270, 271 and 124 of this chapter or to the notification requirements of this section 3010 of RCRA until it exits the unit in which it was generated or unless the hazardous waste remains in the unit more than 90 days after the unit ceases to be operated for manufacturing.

As noted during the inspection, Respondent allowed the storage of hazardous waste solids (D002) in an old plating process bath designated “Sulfuric Acid Anodize” that was pending decommissioning but has been out of service for approximately one year.

Since the date of the inspection, Respondent had Heritage Environmental Services clean out the plating baths (Item 8.a.1. above) of all waste material. This waste material (D002) has been properly transported and disposed at a permitted facility.

Respondent submitted Manifest Number 000410873WAS, documenting proper disposal.

d. Pursuant to 40 CFR 262.34(b), a generator who accumulates hazardous waste for more than 90 days is an operator of a storage facility and is subject to the requirements of 40 CFR Part 264 and the permit requirements of 40 CFR Part 270 unless he has been granted an extension to the 90 day period.

As noted during the inspection, Respondent stored the following hazardous waste on-site for greater than 90 days without complying with 40 CFR Part 264 and 40 CFR Part 270:

1. one (1) fifty-five gallon container of Waste Perchloroethylene (F001) with the accumulation date of August 25, 2010 in the degreasing area; and

2. an old plating process bath designated “Sulfuric Acid Anodize” containing hazardous waste solids (D002) that was pending decommissioning but had been out of service for approximately one year.

Since the date of the inspection, Respondent had Heritage Environmental Services clean out the plating baths (Item 8.c.4. above) of all waste material. Respondent submitted Manifest Number 000410873WAS, documenting proper disposal. Respondent also sent a copy of the manifest for the Waste Perchloroethylene documenting proper disposal.

Respondent has implement procedures to minimize the possibility of hazardous waste being accumulated greater than the required timeframe. The procedures include:

· Monthly Supervisor audit of the container accumulation areas to ensure hazardous waste requirements are being meant.

· Employee 8 hour “General Safety Training” now includes a segment on hazardous waste requirements.

· Monthly Awareness “Toolbox Talk” training includes an annual topic of RCRA Hazardous Waste Awareness. This is provided to allow the supervisors to discuss and review to employees the elements/requirements of hazardous waste collection.

· The HSE Manager conducts quarterly audits of waste collection points to verify compliance and provide input to senior management.

e. Pursuant to 40 CFR 270.1(c), a permit is required for the treatment, storage and disposal of any hazardous waste as identified or listed in 40 CFR Part 261.

As noted during the inspection, Respondent stored hazardous waste identified or listed in 40 CFR Part 261 without a permit. See Item 8.c.

e. Pursuant to IC 13-30-2-1(10), a person may not commence or engage in the operation of hazardous waste facility without having first obtained a permit from the department.

As noted during the inspection, Respondent operated a hazardous waste storage facility without having first obtained a permit from the department. See Item 8.c.

f. Pursuant to 329 IAC 3.1-1-10, every hazardous waste generator, transporter, or owner or operator of a hazardous waste facility shall notify the commissioner of its hazardous waste activity on the approved forms.

As noted during the inspection, Respondent failed to notify the Commissioner of hazardous waste storage activities. See Item 8.c.

g. Pursuant to 40 CFR 262.34(a)(2), a generator may accumulate hazardous waste on-site for 90 days or less without a permit, provided that the date when the accumulation begins is clearly marked and visible for inspection on each container.

As noted during the inspection, Respondent accumulated hazardous waste on-site, without a permit, and did not mark hazardous waste containers with accumulation start dates. Specifically, the following:

1. one (1) red plastic container used to temporarily accumulate various small containers of expired, spent, unused, or unusable lab wastes prior to being labpacked located in Plant 5 Drum Processing Building;

2. one (1) approximately two hundred and seventy five (275) gallon tote containing waste copper cyanide (F007, F008) located in the Waste Treatment Area adjacent to the Plant 5 Electroplating A Area; and

3. one (1) approximately fifteen (15) gallon container with Potassium Cyanide (P098) residue located outside of the Plant 8 Plating Shop near building support Column C32 (this was corrected during the inspection).

Subsequent to the inspection, Respondent emailed the inspector photographs of the containers identified in Items 8.g.1. and 8.g.2. above demonstrating that the containers had been properly labeled and marked with a start of accumulation date.

h. Pursuant to 40 CFR 262.34(a)(3), a generator may accumulate hazardous waste on-site for 90 days or less without a permit, provided that, while being accumulated on-site, each container and tank is labeled or marked clearly with the words "Hazardous Waste."

As noted during the inspection, Respondent accumulated hazardous waste on-site, without a permit, and did not label or clearly mark hazardous waste containers with the words "Hazardous Waste." Specifically, the following:

1. one (1) approximately five hundred (500) gallon cyanide plating waste (F007) pump out buggy located adjacent to the less than 90 day hazardous waste accumulation area (this was corrected during the inspection);

2. one (1) red plastic container used to temporarily accumulate small containers of lab wastes located inside the Plant 5 Drum Processing Building; and

3. one (1) fifteen (15) gallon drum containing Potassium Cyanide (P098) residue located at the Plant 8 building support column C32 outside of the Plating Shop (this was corrected during the inspection).

Subsequent to the inspection, Respondent emailed the inspector a photograph of the red plastic lab waste container demonstrating that it has been properly labeled “Hazardous Waste”.

i. Pursuant to 40 CFR 262.34(a)(1)(i) referencing 40 CFR 265.177, a storage container holding hazardous waste that is incompatible with any waste or other materials stored nearby in other containers must be separated from other materials or protected from them by means of a dike, berm, wall, or other device.

As noted during the inspection, Respondent stored containers of Ammonia Persulfate, identified with a Department of Transportation Oxidizer label, adjacent to containers of Waste Flammable Solids (D001). Respondent also stored on one pallet three (3) incompatible fifty-five (55) gallon drums, one (1) containing Waste Corrosive Liquids (tank clean out sludge, acidic, (D002, D007), one (1) containing Waste Corrosive Liquid Sodium Hydroxide, basic, (D002) and one (1) containing Waste Solid Cyanide Contaminated Debris (F007, F008). This violation was corrected on July 14, 2011.

j. Pursuant to 40 CFR 262.34(a)(1)(i) and 40 CFR 262.34(c)(1)(i) referencing 40 CFR 265.173(a), a container holding hazardous waste must always be closed during storage, except when it is necessary to add or remove waste.

As noted during the inspection, Respondent did not store the following containers of hazardous waste closed:

1. multiple approximately one (1) gallon cardboard “chicken buckets” located within multiple workstations of the Paint Shop Department 3574 containing various waste paint related material and contaminated debris;

2. one (1) fifty-five (55) gallon drum labeled “Hazardous Waste” with an ajar lid located outside on the northeast corner of the concrete pad adjacent to the Plant 8 Maintenance Area (this was corrected during the July 15, 2011 inspection); and

Subsequent to the inspection, Respondent replaced the “chicken buckets” with a closed table top with proper “Hazardous Waste” labeling.

k. Pursuant to 40 CFR 262.34(c)(1), a generator may accumulate as much as 55 gallons of hazardous waste or one quart of acutely hazardous waste in containers at or near any point of generation (in a satellite container), and under the control of the operator of the process generating the waste.

As noted during the inspection, Respondent accumulated greater than fifty-five (55) gallons of hazardous waste in satellite accumulation containers. Specifically, Respondent was accumulating simultaneously two (2) fifty-five (55) gallon containers of hazardous waste fuel/oil in the Plant 5 Large Engine Assembly Area and two (2) fifty-five (55) gallon containers of waste paint in the Plant 5 Carpenter Shop. Respondent corrected the satellite accumulation collection area in the Plant 5 Large Engine Assembly Area on July 14, 2011. Subsequent, to the inspection Respondent submitted via email on July 19, 2011 a photograph demonstrating that the waste paint streams (waste paint and waste paint thinner) located in the Plant 5 Carpenter Shop are now being collected separately in two (2) fifty-five gallon containers.

l. Pursuant to 40 CFR 262.34(c)(1)(ii), a generator may accumulate as much as 55 gallons of hazardous waste in containers at or near the point of generation without a permit and without complying with 40 CFR 262.34(a), provided that the containers are marked with either the words "Hazardous Waste" or with other words describing the contents.

As noted during the inspection, Respondent accumulated hazardous waste in containers at or near the point of generation without a permit and did not properly mark satellite accumulation containers with either the words “Hazardous Waste” or with other words describing the contents. Specifically, multiple approximately one (1) gallon cardboard “chicken buckets” in Paint Shop Department 3574 workstations used for accumulating waste paint related materials were not clearly marked with the words “Hazardous Waste” or other words identifying the container contents. Subsequent to the inspection, Respondent submitted via email on July 19, 2011, documentation that the satellite accumulation “chicken buckets” are in the process of being changed to a table top container.

m. Pursuant to 40 CFR 262.34(a)(1)(ii) referencing 40 CFR 265.195, a generator must inspect tank systems once each operating day. Generators of tank systems that either use leak detection equipment to alert facility personnel to leaks, or implement established workplace practices to ensure leaks are promptly identified, must inspect tank systems at least weekly. Use of the alternate inspection schedule must be documented.

As noted during the inspection, the daily check sheet for the hazardous waste cyanide tank inspections indicated the spill/overflow equipment on the tank system had been checked when in fact a preventive maintenance order was determined necessary to have the overfill prevention system for the tank checked/tested according to facility personnel.

Subsequent to the inspection, Respondent implemented a “Daily Check Sheet for Hazardous Waste Cyanide Tank” and a “Semi-Annual Cyanide Tank Level Alarm Testing”.

n. Pursuant to IC 13-30-2-1(1), no person shall discharge, emit, cause, allow, or threaten to discharge, emit, cause, or allow any contaminant or waste, including any noxious odor, either alone or in combination with contaminants from other sources, into the environment in any form that causes or would cause pollution that violates or would violate 329 IAC 10-4-2, a rule adopted by the board under the environmental management laws.

As noted during the inspection, Respondent allowed the uncontrolled release of baghouse dust generated from the Wheelabrator Blaster and Carpenter Shop. Both baghouse collection systems are located outside near Plant 5 on concrete pads. Respondent submitted via email July 19, 2011 photographs of the Carpenter Shop baghouse area documenting that it has been cleaned. Respondent also noted the supervisor of this area will ensure that this area is checked every shift and cleaned up as needed.

Subsequent to the inspection, Respondent cleaned the baghouse dust generated from the Wheelabrator Blaster. The solidified chunks of material/dust in this area has been cleaned and properly disposed to a permitted facility. The baghouse dust collectors associated with both areas have been addressed to reduce the amount of dust escaping from the system.

o. Pursuant to 329 IAC 10-4-2, no person shall cause or allow the storage, containment, processing, or disposal of solid waste in a manner which creates a threat to human health or the environment, including the creating of a fire hazard, vector attraction, air or water pollution, or other contamination.

As noted during the inspection, Respondent caused and /or allowed solid waste to be disposed at the Site in a manner which creates a threat to human health or the environment. See Finding 8.n. above.

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 and rules listed in the findings above.

3. Upon the Effective Date, Respondent shall ensure the steps taken at the site to minimize the possibility of a recurrence of hazardous waste being accumulated at the Site for greater than the timeframes allowed in 40 CFR 262.34, i.e. 90 days for a large quantity generator and 180 days for a small quantity generator are being followed. This includes following the container and safety inspections and training schedules submitted to IDEM on February 10, 2012.

4. Upon the Effective Date, Respondent shall ensure compliance with 40 CFR 262.34(a)(2). Specifically, Respondent shall ensure that each container accumulating hazardous waste, including those identified in Finding 8.g., is clearly marked with the date when accumulation begins.

5. Upon the Effective Date, Respondent shall ensure compliance with 40 CFR 262.34(a)(3). Specifically, Respondent shall ensure that each container accumulating hazardous waste, including those identified in Finding 8.h., are labeled or clearly marked with the words “Hazardous Waste.”

6. Upon the Effective Date, Respondent shall ensure in the future compliance with 40 CFR 262.34(a)(1)(i) referencing 40 CFR 265.177. Specifically, Respondent shall ensure containers holding hazardous waste which are incompatible with any other containers of waste are being stored separately from other materials or protected from them by means of a dike, berm, wall, or other device.

7. Upon the Effective Date, Respondent shall ensure compliance with 40 CFR 262.34(a)(1)(i) and 40 CFR 262.34(c)(1)(i) referencing 40 CFR 265.173(a). Specifically, Respondent shall ensure satellite and less than ninety day (90) day containers accumulating hazardous waste, including those noted in Finding 8.j. above, are kept closed during storage, except when it is necessary to add or remove waste.

8. Upon the Effective Date, Respondent shall ensure compliance with 40 CFR 262.34(c)(1). Specifically, Respondent shall ensure that designated satellite accumulation areas including the Plant 5 Large Assembly Area and Carpenter Shop satellite areas are at or near the point of generation and no more than fifty-five (55) gallons of hazardous waste or one quart of acutely hazardous waste is being accumulated, and the satellite containers are under the control of an operator of the process generating the waste.

9. Upon the Effective Date, Respondent shall ensure compliance with 40 CFR 262.34(c)(1)(ii). Specifically, Respondent shall ensure all satellite containers are properly marked with the words “Hazardous Waste” or with other words describing the contents including the satellite accumulation containers located in the Paint Shop Department 3574 workstations.

10. Upon the Effective Date, Respondent shall ensure the daily cyanide tank inspections are being conducted and documented. Respondent shall also ensure the Semi-Annual Cyanide Level Alarm testing is being performed and documented.

11. Upon the Effective Date, Respondent shall ensure baghouse dust releases and other spill/releases are addressed immediately which includes but not limited to cleaning the area and properly handling and disposing of the waste.

12. Upon the Effective Date, Respondent shall ensure the preventive measures that will be taken to prevent future baghouse dust releases are implemented. This includes but not limited to implementing the HSE Manager Inspection schedule submitted February 10, 2012.

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

Christina Halloran, Enforcement Case Manager

Office of Land Quality – Mail Code 60-02L

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

14. Respondent is assessed and agrees to pay a civil penalty of Sixteen Thousand and Six Hundred Dollars ($16,600). Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date; the 30^th day being the “Due Date”.

15. 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

16. In the event that the monies due to IDEM pursuant to this Agreed Order are not paid on or before their Due Date, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1. The interest shall be computed as having accrued from the Due Date until the date that Respondent pays any unpaid balance. Such interest shall be payable to the Environmental Management Special Fund, and shall be payable to IDEM in the manner specified in Paragraph 17, above.

17. 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.

18. 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.

19. 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.

20. 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 permits or any applicable Federal or State law or regulation.

21. 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.

22. 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.

23. 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.

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

TECHNICAL RECOMMENDATION:				RESPONDENT:
Department of Environmental Management

By: _________________________				By: _________________________
	Nancy Johnston, Section Chief
	Enforcement Section			Printed: ______________________
Office of Land Quality
				Title: ________________________

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	____________________,	2012.

				For the Commissioner:

				Signed 05/29/2012
				Bruce H Palin
				Assistant Commissioner
				Office of Land Quality