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.

STEEL DYNAMICS, INC – IRON

DYNAMICS DIVISION,

Respondent.

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Case No. 2013-21523-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 Steel Dynamics, Inc. – Iron Dynamics Division (“Respondent”), which owns and operates a stationary Direct Reduced Iron (DRI) manufacturing operation at a steel minimill with Plant ID No. 033-00076 located at 4500 County Road 59, in Butler, DeKalb 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”), for the violations 6(a) – 6(d) listed below, on August 20, 2013 via Certified Mail to:

 

Mr. Keith E. Busse, President & Registered Agent

Iron Dynamics, Inc.

7575 West Jefferson Blvd.

Fort Wayne, IN 46804

 

5.               Respondent waived issuance of a Notice of Violation, for the violation listed as 6(e) on January 21, 2015.

 

6.               Based on compliance stack testing conducted August 1-3, 2012, the following violations  of Part 70 Permit (“Permit”) 033-28976-00076, issued February 19, 2010 were found:

 

a.       Pursuant the Permit, condition D.1.8 and 326 IAC 2-2-3 (BACT), the lead emissions from the rotary hearth furnace (“RHF”) process baghouse Stack 40 shall not exceed 0.00058 pounds per ton of material charged into the furnace and 0.0557 pounds per hour.

On August 3, 2012, the lead emissions were tested at 0.00066 pounds per ton of material charged into the RHF, in violation of Permit condition D.1.8 and 326 IAC 2-2-3.

b.       Pursuant to Permit condition D.1.1 and 326 IAC 2-2-3, the PM/PM10 (where PM10 includes both filterable and condensable components) emissions from the RHF process baghouse shall not exceed 0.0052 grains per dscf through Stack 40. The total emissions shall not exceed 13.4 pounds per hour.

On August 3, 2012 the PM10 condensable emissions were tested at 0.0064 grains per dscf, in violation of Permit condition D.1.1 and 326 IAC 2-2-3.

c.       Pursuant to Permit condition D.5.3 and 326 IAC 2-2-3, the PM/PM10 (where PM10 includes both filterable and condensable components) emissions from the Coal Dryer baghouse B-75 shall not exceed 0.01 grains per dscf through Stack 75. The PM/PM10 emissions shall not exceed 0.5 pounds per hour from Coal Dryer Stack 75.

On August 1, 2012, the Coal Dryer condensable emissions were tested at 0.0402 gr/dscf and 4.46 pounds per hour, in violation of Permit condition D.5.3 and 326 IAC 2-2-3.

d.       Pursuant to Permit condition D.6.1 and 326 IAC 2-2-3, the PM/PM10 (where PM10 includes both filterable and condensable components) emissions from the Ore Dryer baghouse B-76 shall not exceed 0.01 grains per dscf through Stack 76. The PM/PM10 emissions shall not exceed 1.1 pounds per hour from Ore Dryer Stack 76.

On August 2, 2012, the Ore Dryer condensable PM/PM10 emissions were tested at 1.27 pounds per hour, in violation of Permit condition D.6.1 and 326 IAC 2-2-3.

e.       Pursuant to Permit condition C.17(b) and 326 IAC 2-7-5, in the event of a noncompliance demonstrated by a stack test, a retest to demonstrate compliance shall be performed no later than one hundred twenty (120) days after the submission to IDEM of the original test results.

Respondent failed to retest the units listed above, for PM/PM10, within 120 days, in violation of Permit condition C.17(b) and 326 IAC 2-7-5.

7.               Respondent demonstrated compliance for lead for the Rotary Hearth Furnace on November 16, 2012.

 

8.               Respondent conducted a retest for PM/PM10 for the Ore Dryer on April 30, 2013; the results were determined to be invalid.

 

9.               Respondent demonstrated compliance with the PM/PM10 limits for the Coal and Ore Dryers by retesting on October 22 and 24, 2013.  Compliance for the Rotary Hearth Furnace was demonstrated by retesting on December 12, 2013.

 

10.           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.               This Agreed Order, and compliance with its terms and conditions, shall resolve all violations cited in the Notice of Violation issued to Respondent listed in Findings of Fact Paragraph No. 6(a) through 6(d), and the violation cited in Findings of Fact 6(e).

 

3.               Respondent shall comply with emission limits as listed in the above Findings of Fact paragraph 6(a)–(d).

 

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

 

Matthew Chaifetz, 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

 

5.               Respondent is assessed and agrees to pay a civil penalty of Forty-Four Thousand, Two Hundred Fifty Dollars ($44,250.00).  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”.

 

6.               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

Office of Legal Counsel

IGCN, Rm  N1307

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

7.               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.

 

8.               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 6, above.

 

9.               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.

 

10.           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.

 

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

 

12.           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.

 

13.           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 and in paragraph 6(e) of this Agreed Order, for which an NOV was waived.

 

14.           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.

 

15.           This Agreed Order shall remain in effect until Respondent has paid the penalty as required by Order Paragraphs 5 and 6 of this Agreed Order.  IDEM will issue a Resolution of Case letter to Respondent thereafter.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

 

 

 

 

By:

 

 

By:

 

 

Janusz Johnson, Chief

 

Printed:

 

 

Compliance and Enforcement Section 1

 

Title:

 

 

Office of Air Quality

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

 

 

 

 

 

COUNSEL FOR RESPONDENT:

 

 

as to form only

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date:

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 2015.

 

 

For the Commissioner

 

 

 

Signed on April 30, 2015

 

Keith Baugues, Assistant Commissioner

 

Office of Air Quality

 

Indiana Department of Environmental Management