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. 2018-25506-H
					)
evonik corporation dba evonik					)
corporation tippecanoe laboratories,					)
					)
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 Evonik Corporation dba Evonik Corporation Tippecanoe Laboratories (“Respondent”), which owns/operates the facility with United States Environmental Protection Agency (“EPA”) ID No. IND 006 050 967 located at 1650 Lilly Road, in Lafayette, Tippecanoe 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”) to:

Mr. John Rolando, President	Corporation Service Company
Evonik Corporation dba	Registered Agent for
Evonik Corporation Tippecanoe	Evonik Corporation
Laboratories	Evonik Corporation dba Evonik
299 Jefferson Road	Corporation Tippecanoe Laboratories
Parsippany, NJ 07054	135 North Pennsylvania Street, Suite 1610

5. Respondent produces active pharmaceutical ingredients (“APIs”) and intermediates for various human and animal health products including cancer drugs and antibiotics.

6. Respondent has a Resource Conversation and Recovery Act (“RCRA”) Part B permit for hazardous waste storage in tanks and containers and for incineration of hazardous waste. The RCRA Part B permit Issuance Date is August 25, 2017 and the Expiration Date is August 25, 2022. Respondent is also a large quantity generator of hazardous waste, a used oil generator and a universal waste handler.

7. 329 Indiana Administrative Code (“IAC”) 3.1 incorporates certain federal hazardous waste management requirements found in 40 Code of Federal Regulations (“CFR”) Parts 260 through 270 and Part 273, including those identified below.

8. During an investigation including an inspection on June 28, 2018 conducted by a representative of IDEM, the following violations were found:

a. Pursuant to Permit Condition II.E referencing Attachment F-2b(2), Exhibit F-5, 329 IAC 3.1-9 and 40 CFR 264.15(c), the Permittee must follow the inspection schedule in the Procedures to Prevent Hazards, Attachment F. The Permittee must remedy any deterioration or malfunction discovered by an inspection.

According to Attachment F Exhibit F-5, for all components other than pressure relief devices, the physical initial attempt at repair must be made within 5 days of the leak identification and the final repair must be completed within 15 days of the leak occurring.

As noted during the inspection, Respondent documented in the daily tank inspection logs that Tank 3207 aka Tank 7 in the Primary Secondary Tank Farm was observed leaking from the manway on 03/21/18. Work Notification # 10020191 aka Work Order # 10159074 was generated. The maintenance order indicated that the tank needed the initial attempt of repair within 5 days. It appeared that the initial attempt was conducted on 03/25/18; however, the manway continued to leak.

Tank 3207 aka Tank 7 was listed in the daily inspection logs from 03/21/18 to 05/22/18 as leaking with the work order submitted. On 05/23/18 the tank was listed as having been taken out of service for repairs.

On January 17, 2019 Respondent submitted via email an updated daily tank inspection form which identifies the status of the tank and subsequent actions in the event a leak is detected.

IDEM received tank inspection training documentation via email on April 26, 2019 which included the name of the employees with job titles and a copy of the training materials.

b. Pursuant to Permit Condition V.G.2., referencing 329 IAC 3.1-9 and 40 CFR 264.196, in the event of a leak or a spill from the tank system, from a secondary containment system, or if a system becomes unfit for continued use, the Permittee must remove the system from service immediately.

Respondent submitted responses via email on June 29, 2018, December 07, 2018, and March 19, 2019. The responses included additional information regarding Tank 3207 aka Tank 7 repair timeline.

Respondents submittals to IDEM contend that: the tank did not show signs of seepage on March 22, 2018 after the initial repair effort; new seepage was discovered on March 26, 2018 through a regular inspection by Respondent; no seepage reached secondary containment; Tank 3207 was taken out of service and its contents pumped down by March 30, 2018; the manway seal was repaired by August 3^rd and put back into service on August 5, 2018; and Tank 3207 was not in service for the period from March 30 through August 4, 2018.

9. In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Agreed Order.

10. The Agreed Order and compliance with its terms and conditions, shall resolve all violations cited in the Notice of Violation.

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 Paragraph 8 of the findings above.

3. Upon the Effective Date of the Agreed Order, Respondent shall comply with Permit Condition II.E., Attachment F-2b(2), Exhibit F-5, 329 IAC 3.1-9 and 40 CFR 264.15(c). Specifically, Respondent shall ensure in the future that the Corrective Action Guidelines in Attachment F, Exhibit F-5 of Respondent’s RCRA Part B permit are followed completely.

4. Upon the Effective Date of the Agreed Order, Respondent shall comply with Permit Condition V.G.2., referencing 329 IAC 3.1-9 and 40 CFR 264.196. Specifically, if Respondent finds that it will be impossible to meet the required time period to make tank repairs, Respondent shall notify the Commissioner and demonstrate that a longer time period is required.

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

Christina Halloran, Enforcement Case Manager

Office of Land Quality

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

6. Respondent is assessed and agrees to pay a civil penalty of Four Thousand Dollars ($4,000). Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date; the 30^th day being the “Due Date”.

7. 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

Accounts Receivable

IGCN, Room N1340

100 North Senate Avenue

Indianapolis, IN 46204

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 7, above.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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.

14. 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.

15. 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 EPA or any other agency or entity.

16. This Agreed Order shall remain in effect until Respondent complies with the terms of Order Paragraph No. 6. IDEM will issue a Resolution of Case letter to Respondent thereafter.

TECHNICAL RECOMMENDATION:				RESPONDENT:
Department of Environmental Management

By: _________________________				By: _________________________
	Linda McClure, 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 08/05/2019 By:
				Peggy Dorsey, Assistant Commissioner
				Office of Land Quality