STATE OF INDIANA

COUNTY OF MARION

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BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

NORTH VERNON INDUSTRY CORPORATION,

Respondent.

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Case No. 2011-20417-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 North Vernon Industry Corporation (“Respondent”), which owns/operates a stationary gray iron foundry with Plant ID No. 079-00018, located at 3750 4th Street, in North Vernon, Jennings 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. Masahiko Kato, President

Corinne R. Finnerty

North Vernon Industry Corporation

Registered Agent for

780 West C.R. 350 North

North Vernon Industry Corporation

North Vernon, IN 47265

38 North 5th Street

North Vernon, IN  46265

 

 

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

 

a.            Pursuant to rule 326 IAC 2-7-6(6) and Condition D.1.6 of Part 70 permit No. 079-29942-00018, to comply with conditions D.1., D.1.2, and D.1.3, the baghouses for particulate control shall be in operation and control emissions from the electric induction furnaces, the mold sand handling operation and shakeout operations, the shot blast machines, the core removal station, the pre-finish station, the coarse grinding stations, the buffing station and final inspection buffing station at all times that these facilities are in operation.

Respondent failed to control particulate emissions from baghouse 1 because it was determined that a collection bag was not attached allowing fine dust to spill, in violation of rule 326 IAC 2-7-6(6) and C
ondition D.1.6 of Part 70 permit No. 079-29942-00018.

 

b.            Pursuant to rule 326 IAC 6-3-2(d) and Condition D.2.6 of Part 70 permit No. 079-29942-00018, particulate from the paint booths, P1-Paint Booth # 2 and P1-Paint Booth # 3, shall be controlled by a dry particulate filter and the Permittee shall operate the control device in accordance with manufacturer’s specifications.

 

Respondent failed to control particulate emissions from touch-up spray painting that was observed being performed outside of the paint booths, in violation of rule 326 IAC 6-3-2(d) and Condition of D.2.6 of Part 70 permit No. 079-29942-00018.

c.            Pursuant to Rule 326 IAC 8-3-2 and Condition D.5.1 of Part 70 permit No. 079-29942-00018, the degreaser cover shall be closed whenever parts are not being handled in the cleaner.

Respondent failed to close the degreaser cover in the maintenance shop when parts were not being handled in the cleaner, in violation of Rule 326 IAC 8-3-2 and Condition D.5.1 of Part 70 permit No. 079-29942-00018.

 

d.            Pursuant to Section E.2 of Part 70 permit No. 079-29942-00018 and National Emissions Standards for Hazardous Air Pollutants for Iron and Steel Foundries Area Sources, 40 CFR 63.10896(a) permittee shall prepare a written operation and maintenance (O&M) plan for each control device subject to a PM, metal HAP or opacity emissions limit in 40 CFR 63.10896(a).

Respondent failed to have an O&M plan in place for the stack P1B1 and P2B1 dust collectors, in violation of Section E.2 of Part 70 permit No. 079-29942-00018 and 40 CFR 63.10896(a).

 

6.            The source has returned to compliance on all of the aforementioned violations, providing documentation that the baghouse leak was fixed within twenty-four hours of the inspection.  The source submitted documentation that procedures will be revised to prevent personnel from painting outside of the paint booth.  Lastly, the source prepared an Operation & Maintenance Plan, dated November 29, 2011.

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 Condition D.1.6, Condition D.2.6, Condition D.5.1 and Section E.2, of Part 70 permit No. 079-29942-00018.

 

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

 

Bruce Hamilton, 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

 

4.            Respondent is assessed and agrees to pay a civil penalty of Eight Thousand Six Hundred Dollars ($8,600.00).  Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date; the 30th day being the “Due Date”.

 

5.            Civil penalties are payable by check to the “Environmental Management Special Fund.” Checks shall include the Case Number of this action (#2011-20417-A) 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 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 its status or responsibilities under this Agreed Order.

 

7.            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 4, above.

 

8.            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.

 

9.            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.

 

10.         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.

 

11.         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.

 

12.         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 violation specified in the NOV.

 

13.         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.

 

14.         This Agreed Order shall remain in effect until Respondent has complied with all terms and conditions of this Agreed Order.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

North Vernon Industry Corporation

 

 

 

By:

 

 

By:

 

 

Mark Amick, Deputy Director

 

Printed:

 

 

Southeast Regional Office

 

Title:

 

 

Office of Compliance Services

 

 

 

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 on May 15, 2012

 

Keith Baugues, Assistant Commissioner

 

Office of Air Quality

 

Indiana Department of Environmental Management