Respondent Name: Superior Ag Resources Cooperative, Inc.

Case Number: 2019-26269-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 Superior Ag Resources Cooperative, Inc. (“Respondent”), which owns and operates the source with Plant ID No. 147-00063, located at 21419 North County Road 400 East in Dale, 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:

Barry Day, President	Barry Day, Registered Agent
Superior Ag Resources Cooperative, Inc.	901 North Main Street
30 Carter Boulevard	Huntingburg, Indiana 47542
Jasper, Indiana 47546

5. At the time of an inspection conducted on May 23, 2019, the following violations were in existence or observed at the Site by a representative of IDEM’s Office of Air Quality (“OAQ”).

a) Pursuant to Federally Enforceable State Operating Permit No. 147-37829-00063 (“Permit”) condition B.11, Respondent shall submit an annual compliance certification report addressing the status of the source’s compliance no later than July 1 of each year.

Respondent failed to submit an annual compliance certification for 2017, in violation of Permit condition B.11.

b) Pursuant to Permit condition C.18, Respondent shall submit Quarterly Deviation and Compliance Monitoring Reports thirty (30) days after the end of the reporting period.

Respondent failed to submit the Quarterly Deviation and Compliance Monitoring Reports for the second, third, and fourth quarters of 2017, all four quarters of 2018, and the first quarter of 2019, in violation of Permit condition C.18.

c) Pursuant to Permit condition D.1.6, Respondent shall perform PM, PM10, and PM2.5 testing of the Hammermill no later than 180 days after initial startup of the Hammermill.

Respondent started full production by at least July 2018 and completed the PM, PM10, and PM2.5 testing on April 9, 2019, well after the 180 day deadline, in violation of Permit condition D.1.6.

d) Pursuant to Permit condition D.1.7 and D.1.11(a), Respondent must conduct daily visible emission notations and maintain daily records of the visible emission notations.

Respondent failed to conduct and maintain records of the daily visible emission notations for the bin vent filter exhausts and pellet cooler cyclone, in violation of Permit condition D.1.7 and D.1.11(a).

e) Pursuant to Permit condition D.1.8 and D.1.11(b) for baghouses DC-1, DC-2, and DC-4, Respondent shall record pressure drop readings once per day when the emission unit each baghouse is controlling is in operation, maintain daily records of the pressure drop, and take reasonable steps when the pressure drop is outside the normal range.

Respondent recorded pressure drop readings from July 27, 2018 to January 1, 2019 outside the normal range without taking reasonable response steps, in violation of Permit condition D.1.8 and D.1.11(b).

f) Pursuant to Permit condition E.1.2(6) and 40 CFR 63.11624, Respondent must submit an Initial Notification of Compliance Status and prepare an Annual Compliance Certification report by March 1 of each year for the previous calendar year.

Respondent failed to submit the Initial Notification of Compliance Status and failed to submit the Annual Compliance Certification report for 2018 and 2019, in violation of Permit condition E.1.2(6) and 40 CFR 63.11624.

6. 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 adopted via signature by Complainant or Complainant’s delegate, and the adopted Agreed Order has been received by Respondent. This Agreed Order shall have no force or effect until the Effective Date. This offer to settle the allegations contained in this Agreed Order does not bind or obligate the parties of this enforcement action if the Agreed Order is not adopted.

2. Respondent shall submit the Initial Notification of Compliance Status and Annual Compliance Certification report pursuant to E.1.2(6) and 40 CFR 63.11624 no later than forty-five (45) days from the Effective Date.

3. Respondent is assessed a civil penalty of Five Hundred Dollars ($500.00). Respondent shall pay said penalty amount no later than fifteen (15) days after the Effective Date (“Due Date”). In the event that the civil penalty is not paid by the Due Date, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1-101.

4. In the event the terms and conditions of this Agreed Order are violated, Complainant may seek additional relief.

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 its status or responsibilities under this Agreed Order.

7. 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.

8. 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.

9. 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.

10. 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.

11. Nothing in this Agreed Order shall prevent IDEM or anyone acting on its behalf from communicating with the United States Environmental Protection Agency (“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.

12. The parties were free to consult with their respective counsel regarding entry into this Agreed Order to the extent each deemed necessary.

TECHNICAL RECOMMENDATION:			RESPONDENT:*
Department of Environmental Management			Superior Ag Resources Cooperative, Inc.
By:			By:
	David P. McIver, Chief		Printed:
	Enforcement Section		Title:
	Office of Air Quality
			Date:
APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL
MANAGEMENT THIS		DAY OF		, 2019.
			For the Commissioner:
			Signed on August 5, 2019
			Matthew Stuckey, Deputy Assistant Commissioner
			Office of Air Quality

_____________________

* In the event that Respondent does not accept the settlement offer contained in this Agreed Order, IDEM notes that this document is a qualified offer of settlement, and therefore Rule 408 of Indiana Rules of Evidence applies to this document, rendering it inadmissible.