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. 2012-21321-H
					)
METALWORKING LUBRICANTS CO.,					)
					)
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 Metalworking Lubricants Company (“Respondent”), which operates the facility with United States Environmental Protection Agency (EPA) ID No. IND000646950 located at 1509 South Senate 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) on January 25, 2013 via Certified Mail to:

R.F. Tomlinson, CEO	CT Corporation System, Registered Agent
Metalworking Lubricants Company	251 East Ohio Street
25 Silverdome Industrial Park	Suite 1100
Pontiac, MI 48324	Indianapolis, Indiana 46204

5. Respondent notified EPA of Treatment, Storage, and Disposal for tank storage activities and as a used oil processor. On December 12, 2012, IDEM issued a Class 1 Permit Modification converting Respondent’s RCRA Part B Operating Permit to a Corrective Action Permit.

6. Respondent manufactures and markets a complete line of cutting oils; ferrous and non-ferrous compounds; hydraulic, way, and gear oils; greases; and other products. Additionally, Respondent designs and markets lubricants, cleaners, quenching fluids, and rust inhibitors.

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. 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.

9. During an investigation including inspections on November 14 and 19, 2012 conducted by a representative of IDEM, the following violations were found:

a. Pursuant to 329 IAC 13-7-5(c), containers and aboveground tanks to store or process used oil at processing and re-refining facilities must (1) be in good condition with no severe rusting, apparent structural defects, or deterioration; and (2) not be leaking (with no visible leaks).

As noted during the inspections, Respondent’s tanks P4, P10, P11, P12, P13, S6, Tank Farm 1, and Tank Farm 19 were in poor condition with structural defects, severe rusting, and deterioration and were leaking used oil. Additionally, a 55-gallon container located in the blend tank farm was leaking used oil sludge from the bottom of the container.

b. Pursuant to 329 IAC 13-7-5(b), used oil processors may not store used oil in units other than tanks or containers.

As noted during the inspections, Respondent allowed used oil and used oil residues to accumulate within secondary structures.

c. Pursuant to 329 IAC 13-7-3(a)(1), owners and operators of used oil processors and re-refiners facilities must be maintained and operated to minimize the possibility of any unplanned sudden or nonsudden release of used oil to air, soil, or surface water that could threaten human health or the environment.

As noted during the inspections, Respondent did not maintain and operate its facility to minimize the possibility of any unplanned sudden or nonsudden release of used oil to air, soil, or surface water that could threaten human health or the environment. Tanks routinely overfill due to no overfill prevention equipment for tanks. Structural defects of the tanks were observed and the tanks were severely rusted and deteriorated. Tank insulation was saturated with used oil and was deteriorated. Repair orders over the 4 month period prior to inspections indicate at least 37 equipment leaks with the tanks and associated pipes. The floor of the secondary containment structures for the process tank farm was covered with used oil and used oil residues preventing the identification or assessment of possible problems with the containment structure.

10. On October 30, 2013, IDEM conducted a follow-up inspection of the facility and found tanks P10, P11, and P12 out of service.

11. On August 21, 2014, IDEM issued a Notice and Order of the Commissioner in this matter. Respondent filed a Petition for Administrative Review on September 10, 2014, which has been pending as Cause No. 14-S-E-4754 with the Office of Environmental Adjudication.

12. 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 the statutes, rules, and/or permit conditions listed in the findings above.

3. Upon the Effective Date, Respondent shall comply with 329 IAC 13-7-5(c). Specifically, Respondent shall immediately stop visible leaks and take leaking tanks out of service. Permanent repairs shall be made before placing tanks back in service. Additionally, Respondent shall replace five (5) tanks with compatible tanks by December 31, 2014.

4. Upon the Effective Date, Respondent shall immediately clean (wash down) the secondary containment system if used oil and used oil residue is observed during daily/weekly inspections. Respondent shall maintain records on-site documenting the daily/weekly inspections and remedial actions of the secondary containment system.

5. Upon the Effective Date, Respondent shall conduct inspections in compliance with Respondent’s November 2013 Spill Prevention, Control, and Countermeasure (SPCC) Plan looking for severe rusting, apparent structural defects or deterioration, and visible leaks. Additionally, Respondent shall conduct, document, and maintain on-site weekly inspections pursuant to 40 CFR 112.7(e).

6. Upon the Effective Date, Respondent shall label trailers and tanker trucks stored on the northeast side of the property with words describing the contents.

7. Upon the Effective Date, Respondent shall comply with 329 IAC 13-7-5(b). Specifically, Respondent shall not allow used oil and used oil residues to accumulate within secondary containment structures.

8. Upon the Effective Date, Respondent shall comply with 13-7-3(a)(1). Specifically, Respondent shall cease used oil to routinely overfill from tanks.

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

Jennifer Reno, Enforcement Case Manager

Office of Land Quality

Indiana Department of Environmental Management

100 North Senate Avenue

10. Respondent is assessed and agrees to pay a civil penalty of Thirty Thousand Dollars ($30,000). Respondent shall pay Six Thousand Dollars ($6,000) within thirty (30) days of the Effective Date. Said penalty amount shall be due and payable to the Environmental Management Special Fund. In lieu of payment of the remaining civil penalty, Respondent has performed and completed a Supplemental Environmental Project (SEP). Respondent estimated this SEP cost at least Forty-Eight Thousand Dollars ($48,000).

Within fifteen (15) days of the Effective Date, Respondent shall submit written notice and documentation to IDEM which substantiates all actions taken and costs incurred with respect to the SEP. If the cost of the SEP is less than Forty-Eight Thousand Dollars ($48,000), Respondent shall pay 50% of the difference between the required cost of the SEP ($48,000) and the actual cost of the SEP.

11. As a Supplemental Environmental Project, Respondent shall upgrade containment pads located by the tank farm and pump house. The project entails the construction of a curb and swale at the top of each pad and a new trench that cuts into the pad to direct the flow of water away from the containment wall and into a small pit. The pollution control/reduction project prevents excess debris from entering the secondary containment system. The curb and swale at the top of the pad allows water to flow onto the pad, but prevents the flow of gravel and dirt into the system. Water and used oil continuously move through the system without the accumulation of solid wastes (rocks and debris). The trench system from the flush out to the C pad allows water from the flush out system to be transported to the plant rather than along the secondary containment wall. The project reduces the amount of rocks and debris taken to the landfill for disposal and prolongs the life of the containment wall.

12. The civil penalty is 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

100 North Senate Avenue

Indianapolis, IN 46204-2251

13. 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 12, above.

14. 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.

15. Respondent agrees to withdraw its Petition for Administrative Review pending as Cause No. 14-S-E-4754 with the Office of Environmental Adjudication within ten (10) days of the Effective Date of this Order.

16. 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.

17. 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.

18. 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.

19. 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.

20. 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.

21. 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.

22. 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 RESPONDENT:
				By: ________________________
				Date: ______________________
APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL
MANAGEMENT THIS		______	DAY OF	________________________,	20__.
				For the Commissioner:
				Signed on 1/16/15________
				Bruce H Palin