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.

BUCKEYE TERMINALS, LLC,

Respondent.

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Case No. 2014-22609-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 Buckeye Terminals, LLC (“Respondent”), which owns and operates the Buckeye Terminals, LLC with Plant ID No. 089-00239, located at 2400 Michigan Street, in Hammond, Lake 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 December 22, 2014 via Certified Mail to:

 

Clark C. Smith, President and Chief Executive Officer

 

Corporation Service Company, Registered Agent

Buckeye Terminals, LLC

 

251 East Ohio Street, Suite 500

5 Tek Park

9999 Hamilton Boulevard

 

Indianapolis, IN 46204

Breinigsville, PA 18031

 

 

 

5.             During an investigation including an inspection on August 19, 2014 conducted by a representative of IDEM, the following violations were found:

 

a.             Pursuant to 326 Indiana Administrative Code (“IAC”) 8-1-6 and Title V/Part 70 Operating Permit No. T089-33218-00239 (“Permit”), Condition D.1.3(a), the volatile organic compound (“VOC”) emissions from the 24-spot railcar loading rack shall be controlled by a Vapor Combustion Unit (“VCU”) 2 and VCU3.

On and after April 9, 2014, Respondent failed to control VOC emissions from the 24-spot railcar loading rack by VCU2 and VCU3 when 100 gallons of crude oil was released due to railcar overfill, in violation of 326 IAC 8-1-6 and Permit Condition D.1.3(a).

 

b.             Pursuant to Permit Condition D.1.6(b), not later than 180 days after the start up of the railcar loading rack, Respondent shall perform VOC testing (including emission rate and control efficiency) of VCU2 and VCU3 when loading distillate products, utilizing methods approved by the Commissioner.

Respondent failed to conduct VOC testing of VCU2 and VCU3 when loading distillate products within 180 days of start up of the railcar loading rack, in violation of Permit Condition D.1.6(b).

 

c.              Pursuant to Permit Condition D.1.7(a), a continuous monitoring system shall be calibrated, maintained, and operated on VCU2 and VCU3 for measuring operating temperature of the VCU2 and VCU3.  For the purposes of this condition, continuous means no less often than once per fifteen (15) minutes.  The output of this system shall be recorded as a 3-hour average.  From the date of the start up of the VCUs until the stack test results are available, Respondent shall operate the VCUs at or above the 3-hour average temperature of 1,200°F.

Respondent failed to operate the VCUs at or above the 3-hour average temperature of 1,200°F from the date of the start up of the VCUs until the stack test results were available, in violation of Permit Condition D.1.7(a).

 

d.             Pursuant to Permit Condition D.1.7(c), on and after the date the stack test results are available, Respondent shall operate the VCUs at or above the 3-hour average temperature as observed during the latest compliant stack test.

On and after May 23, 2014, Respondent failed to operate the VCUs at or above the 3-hour average temperature as observed during the latest compliant stack test on and after the date the stack test results were available, in violation of Permit Condition D.1.7(c).

 

e.             Pursuant to Permit Condition D.1.7(d), if the 3-hour average temperature falls below the above mentioned 3-hour average temperature, Respondent shall take a reasonable response.

Respondent failed to take reasonable response steps when the 3-hour average temperature fell below the required 3-hour average temperature for the VCUs, in violation of Permit Condition D.1.7(d).

 

f.               Pursuant to Permit Condition D.1.8(b), Respondent shall maintain continuous temperature records for VCU2 and VCU3 and the 3-hour average temperature used to demonstrate compliance during the most recent compliant stack test.

Respondent failed to maintain continuous temperature records of the 3-hour average temperature used to demonstrate compliance for VCU2 and VCU3, in violation of Permit Condition D.1.8(b).

 

g.             Pursuant to 326 IAC 8-9-5(b) and Permit Condition D.2.6(d), Respondent shall visually inspect the internal floating roof, the primary seal, and the secondary seal (if one is in service), gaskets, slotted membranes, and sleeve seals (if any) each time the storage vessel is emptied and degassed.  If the internal floating roof has defects, the primary seal has holes, tears, or other openings in the seal or the seal fabric, or the gaskets no longer close off the liquid surfaces from the atmosphere, or the slotted membrane has more than 10 percent open area, Respondent shall repair the items as necessary so that none of the conditions specified in this paragraph exist before refilling the storage vessel with volatile organic liquid (VOL).  In no event shall inspections conducted in accordance with this provision occur at intervals greater than 10 years in the case of vessels conducting the annual visual inspection as specified in Permit Condition D.2.5(b) and D.2.5(c)(1) and at intervals no greater than 5 years in the case of vessels specified in Permit Condition D.2.5(c)(2).

Respondent failed to conduct the required inspection for storage tank D-91 within the required ten (10) years interval, in violation of 326 IAC 8-9-5(b) and Permit Condition D.2.6(d).

 

h.             Pursuant to 326 IAC 2-7-2, no major source may operate prior to obtaining a current valid Part 70/Title V Operating Permit.

Respondent failed to obtain the required operating permit prior to operating VCU3, in violation of 326 IAC 2-7-2.

 

7.             On October 24, 2014, Respondent provided inspection records for storage tank D-91 indicating the storage tank had been inspected pursuant to 326 IAC 8-9-5(b) on October 14, 2014.

 

8.             On August 7, 2015, Title V/Part 70 Operating Permit No. T089-35020-00239 was issued, which removed VOC testing requirements for VCU2 and VCU3 when loading distillate products.

 

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 rules and permit conditions listed above at issue.

 

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

 

Brooke A. Myer, 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 One Hundred Fifty Eight Thousand Dollars ($158,000.00).  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 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

Office of Legal Counsel

IGCN, Rm N1307

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 5, 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 violations 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 and IDEM issues a Resolution of Case letter to Respondent.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

Buckeye Terminals, LLC

 

 

 

By:

 

 

By:

 

 

Janusz Johnson, Chief

 

Printed:

 

 

Compliance and Enforcement Section 1

 

Title:

 

 

Office of Air Quality

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

 

 

 

 

 

COUNSEL FOR RESPONDENT:

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date:

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 2015.

 

 

For the Commissioner

 

 

 

Signed on October 26, 2015

 

Keith Baugues, Assistant Commissioner

 

Office of Air Quality

 

Indiana Department of Environmental Management