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.

AK Steel Corporation,

Respondent.

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Case No. 2017-24525-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 AK Steel Corporation (“Respondent”), which owns and operates the stationary steel coil finishing plant with ancillary equipment with Plant ID No. 147-00041, located at 6500 North US 231, in Rockport, Spencer 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:

Roger K. Newport, President

Corporation Service Co, Registered Agent

AK Steel Corporation

135 North Pennsylvania Street

9227 Centre Pointe Drive

Suite 1810

West Chester, OH 45069

Indianapolis, IN 46204

 

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

 

a.       Pursuant to Part 70 Permit No. 147-35654-00041 (“Permit”), issued to Respondent on September 29, 2015, Condition D.2.5(b), to ensure compliance with Condition D.2.1, scrubber S02 shall be operated at all times and controlling PM when the three (3) HCl acid pickle and rinse tanks are in operation.

Respondent failed to operate scrubber S02 for 170 minutes on August 26, 2016 when the HCl acid pickle and rinse tanks were in operation, in violation of Permit Condition D.2.5(b).

b.       Pursuant to Permit Condition D.1.2(a), The 110.0 MMBtu per hour annealing furnace section No. 1 and the 55.0 MMBtu per hour annealing furnace section No. 2 shall each use only natural gas and NOx emissions,  shall be controlled by ultra-low-NOx burners with integral exhaust gas recirculation.

Respondent operated anneal furnace section #1 without the integral exhaust gas recirculation operating for 55 minutes on September 2, 2016 and anneal furnace section #2 without integral exhaust gas recirculation for 7 hours on November 20, 2016, in violation of Permit Condition D.1.2(a).

c.        Pursuant to Permit Condition D.1.5(b), to ensure compliance with Condition D.1.1, scrubber S06, S09A, S09B shall be operated at all times their respective emission units are in operation.

Respondent failed to operate scrubber S09A for 6 hours on November 19, 2016 when the electrolytic pickling and rinse tanks were in operation, in violation of Permit Condition D.1.5(b).

d.       Pursuant to Permit Condition D.1.9(b), Permittee shall monitor and record the pressure drop across the scrubbers (S09B, S09A, and S06) at least once per day when the associated processes are in operation.

Pursuant to Permit Condition D.1.10(c), to document compliance status with Condition D.1.9, the Permittee shall maintain daily records of the pressure drop across the scrubbers.  The Permittee shall include in its daily record when a pressure drop reading is not taken and the reason for the lack of a pressure drop reading.

Respondent failed to monitor and record pressure drop across scrubber S09B on November 24, 2016 when the mixed acid pickle and rinse tanks were in operation, in violation of Permit Condition D.1.9(b) and D.1.10(c).

e.       Pursuant to Permit Condition D.1.5(a), to ensure compliance with Condition D.1.1, baghouses  shall be operated at all times and controlling PM when their respective emission units are in operation.

Respondent failed to operate Baghouse S09C for 45 minutes on December 18, 2016 when the skin pass temper unit was operating and the Quench Baghouse for 40 minutes on March 6, 2017 when the Continuous Anneal Pickle line was operating, in violation of Permit Condition D.1.5(a).

f.        Pursuant to Permit Condition D.2.5(a), to ensure compliance with Condition D.2.1, Baghouse S01 shall be operated at all times and controlling PM when strip leveler and mechanical scale breaker are in operation.

Respondent failed to operate Baghouse S01 for 105 minutes on February 11, 2017 when the units were in operation, in violation of Permit Condition D.2.5(a).

g.       Pursuant to Permit Condition D.5.5(b), when for any reading the pressure drop across the baghouse used in conjunction with the electrodischarge texturing machine is outside the normal range, the Permittee shall take a reasonable response.

Respondent failed to take response steps on several days in 2017 when the baghouse was observed to be out of range, in violation of Permit Condition D.5.5(b).

6.             Respondent waived issuance of a Notice of Violation (“NOV”), for the violation specified in Findings of Fact as referenced in the Enforcement Action Letter issued on February 9, 2018, and to the settlement period of sixty (60) days as provided for by IC 13-30-3-3, on February 20, 2018.

Pursuant to Permit Condition D.6.5(a), to ensure compliance with Condition D.6.2, the fume scrubber system (S04) shall be in operation and control emissions from the HCl, nitric acid, and HF storage tanks at all times the tanks are in operation. The process operation occurs each time material is being added to or taken from the tanks controlled by scrubber S04.

Respondent failed to operate fume scrubber system (S04) for 5.32 hours on October 18, 2017 when two trucks were unloading, in violation of Permit Condition D.6.5(a)

 

7.             Respondent took actions after each event to prevent reoccurrence of the failure of the controls.

8.             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 Part 70 Permit No. 147-35654-00041, unless superseded by a modification or renewal.

 

3.             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

 

4.             Respondent is assessed and agrees to pay a civil penalty of Forty-Four Thousand Eight Hundred Dollars ($44,800.00).  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 and shall be mailed to:

 

IDEM Office of Legal Counsel

IGCN, Rm  N1307

100 N Senate Ave

Indianapolis, IN  46204

 

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 their 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 IDEM issues a Resolution of Case letter to Respondent.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

AK Steel Corporation

 

 

 

By:

 

 

By:

 

 

David P. McIver, Chief

 

Printed:

 

 

Enforcement Section

 

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

 

, 2018.

 

 

For the Commissioner

 

 

 

Signed on March 8, 2018

 

Keith Baugues, Assistant Commissioner

 

Office of Air Quality

 

Indiana Department of Environmental Management