STATE OF INDIANA ) BEFORE THE INDIANA DEPARTMENT
) SS: OF ENVIRONMENTAL MANAGEMENT
COUNTY OF MARION )
COMMISSIONER OF THE DEPARTMENT )
OF ENVIRONMENTAL MANAGEMENT, )
)
Complainant, )
)
v. ) CAUSE NO. A-4637
)
MIDDLEBURY HARDWOOD )
PRODUCTS, INC., )
)
Respondent. )
AGREED ORDER
The Complainant and the 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.
I. FINDINGS OF FACT
1. Complainant is the Commissioner (hereinafter referred to as "Complainant") of the Indiana Department of Environmental Management, a department of the State of Indiana created by IC 13-13-1-1.
2. Respondent is Middlebury Hardwood Products, Inc. (hereinafter referred to as "Respondent"), which owns and operates a wood furniture manufacturing facility at 101 Joan Drive, located in Middlebury, Indiana.
3. The Indiana Department of Environmental Management ("IDEM") has jurisdiction over the parties and subject matter of this action.
4. Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation via Certified Mail to:
Charles Lamb
Registered Agent for:
Middlebury Hardwood Products, Inc.
101 Joan Drive
Middlebury, IN 46540
5. On November 15, 1999, IDEM representatives conducted an investigation at the Respondent's facility located at 101 Joan Drive, Middlebury, IN.
6. 40 CFR 63.9(b) requires the owner of an affected source to submit an initial notification report to IDEM within 270 days from the effective date of the rule.
The Respondent submitted the initial notification report more than 270 days after the effective date, a violation of 40 CFR 63.9(b).
7. 40 CFR 63.803(b) requires each owner of an affected source to train all new and existing personnel who are involved in finishing, gluing, cleaning, and wash off operations, use of manufacturing equipment, or implementation of the requirements of this subpart. This violation is based on the fact that the applicator training records were not on file at the time of the investigation, a violation of 40 CFR 63.803(b).
8. 40 CFR 63.803(c) requires each owner of an affected source to prepare and maintain with the work practice implementation plan a written leak inspection and maintenance plan. This violation is based on the fact that a written leak inspection plan was not in place from November 1997 to November 1998, a violation of 40 CFR 63.803(c).
9. 40 CFR 63.806(e)(2) requires each owner of an affected source to maintain onsite
the work practice implementation plan and all records associated with fulfilling the requirements of that plan, including records collected in accordance with the inspection and maintenance plan required by Sec. 63.803(c). This violation is based on the fact that during the investigation it was noted that no leak inspection records were available for the period November 1997 to November 1998, a violation of 40 CFR 63.806(e)(2).
10. 40 CFR 63.804(g) requires each owner of an affected source to demonstrate continuous compliance by submitting the results of the averaging calculation for each month within that semiannual period and submitting a compliance certification with the semiannual report required by 40 CFR 63.807(c).
This violation is based on the fact that the continuous compliance report for the period January 1, 1999 to June 30, 1999 was submitted after the due date, a violation of 40 CFR 63.804(g).
11. 40 CFR 63.804(f) requires each owner of an affected source to submit the results of the averaging calculation (Equation1) for the first month with the initial compliance status report required by Sec. 63.807(b). This violation is based on the fact that the averaging calculation for November 1997 was not submitted, a violation of 40 CFR 63.804(f).
12. 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 the Complainant or her delegate, and has been received by the Respondent. This Agreed Order shall have no force or effect until the Effective Date.
2. All submittals required by this Agreed Order, unless notified otherwise in writing, shall be sent to:
Craig Henry, Enforcement Case Manager
Office of Enforcement
Indiana Department of Environmental Management
100 N. Senate Avenue
P. O. Box 6015
Indianapolis, IN 46206-6015
3. Respondent is assessed a civil penalty of Fifteen Thousand Four Hundred Dollars ($15,400.00). Within thirty (30) days of the Effective Date of the Agreed Order, Respondent shall pay a portion of this penalty in the amount of Three Thousand Eighty Dollars ($3,080.00). Said penalty amount shall be due and payable to the Environmental Management Special Fund. In lieu of payment of the remaining civil penalty, Respondent shall perform and complete a Supplemental Environmental Project (ASEP@). Respondent estimates that this SEP will cost Two Million Dollars ($2,000,000.00). Within thirty days of completing this SEP, Respondent shall submit written notice and documentation to IDEM which substantiates all actions taken and costs incurred with respect to the SEP. In the event that the cost of the SEP is less than Fifty Thousand Dollars ($50,000.00), Respondent shall pay twenty five per cent of the difference between the minimum cost of the SEP ($50,000.00) and the actual cost of the SEP.
Respondent shall implement the SEP pursuant to Attachment A of this Agreed Order. Respondent shall install and operate the automated computer controlled flat line finishing line by no later than one year after the Effective Date of this Agreed Order. Within ninety days of the completion of the SEP, the Respondent shall submit written documentation demonstrating the actual reduction in VOC emissions.
In the event that the Respondent does not complete the SEP within one year after the Effective Date of this Agreed Order, the full amount of the civil penalty as stated in paragraph (#3) above, plus interest established by IC 24-4.6-101 on the remaining amount, less the portion of the civil penalty Respondent has already paid, will be due within fifteen (15) days from Respondent's receipt of IDEM=s notice to pay. Interest, at the rate established by IC 24-4.6-1-101, shall be calculated on the amount due from the date which is thirty (30) days after the Effective Date of this Agreed Order until the full civil penalty is paid.
4. Civil penalties are payable by check to the Environmental Management Special Fund. Checks shall include the Cause Number of this action and shall be mailed to:
Cashier
IDEM
100 N. Senate Avenue
P. O. Box 7060
Indianapolis, IN 46207-7060
5. In the event that the civil penalty required by paragraph 3 is not paid within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1-101. The interest shall continue to accrue until the civil penalty is paid in full.
6. This Agreed Order shall apply to and be binding upon the Respondent, its officers, directors, principals, agents, successors, subsidiaries, and assigns. The Respondent's signatories to this Agreed Order certify that they are fully authorized to execute this document and legally bind the parties they represent. No change in ownership, corporate, or partnership status of the Respondent shall in any way alter its status or responsibilities under this Agreed Order.
7. In the event that any terms of the 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 the Agreed Order did not contain the invalid terms.
8. The 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.
9. This Agreed Order shall remain in effect until the Respondent has complied with all terms and conditions of this Agreed Order.
TECHNICAL RECOMMENDATION: RESPONDENT:
Department of Environmental Management Middlebury Hardwood Products, Inc.
By: _________________________ By: _________________________
David P. McIver
Chief, Air Section
Office of Enforcement Printed: ______________________
Title: ________________________
Date: ________________________ Date: ________________________
COUNSEL FOR COMPLAINANT: COUNSEL FOR RESPONDENT:
Department of Environmental Management
By: _________________________ By: ________________________
Office of Legal Counsel
Department of Environmental Management
Date: _______________________ Date: ______________________
APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS _____ DAY OF ____________________, 20___.
For the Commissioner:
Adopted February 7, 2001
Felicia A. Robinson
Assistant Commissioner
Office of Enforcement
ATTACHMENT A
Middlebury Hardwood Products, Inc.
Supplemental Environmental Project (SEP)
I. SEP Project Description:
Summary: Middlebury Hardwood Products, Inc., presently uses both air assisted airless and high volume low-pressure manually operated spray guns to coat wood substrate, doors and cabinets with a stain and a sealer topcoat. Spray booths with dry medium filters capture particulate matter. There is no coating recovery.
Middlebury Hardwood Products, Inc., has contracted with Stiles Machinery to purchase an automated, computer controlled, flat line finishing line manufactured by CEFLA of Italy. A fifty percent reduction to the latest quarters 32 tons of VOC emissions will result in a reduction of 64 tons of VOC=s per year. This will be achieved by four (4) of the proposed twenty-four (24) pieces of advanced technology equipment being purchased. Additionally, numerous improvements not listed such as water curtains to recover PM particulate matter are not included in this submission.
Equipment description:
1) Three (3) reciprocating spray machines, self contained automated with a carbon belt to achieve increased transfer efficiency from the bounce effect of the stain from the belt back to the substrate and coating spray recovery from the belt for reuse. The recovery system recovers 98 percent of the material deposited on the belt. The machine uses sixty photo cells to monitor and regulate application transfer efficiency.
2) One (1) rotary spray machine for stains self contained and automated with fiber belt for the recovery of stain materials. The machine features a programmable logic control with self-diagnostics to maximize efficiency. The recovery system recovers 98 percent of the material deposited on the belt.
II. SEP Category
This SEP will be for APollution prevention@ as both a source reduction and other practices to reduce VOC and HAP air emissions. Also pollution prevention Aother practices@ by the increased efficiency for the usage of raw materials.
III. Environmental Benefit of SEP:
The automated equipment is expected to reduce VOC emissions by approximately fifty percent or 64 tons per year.
IV. Projected Costs/Savings of SEP:
This will be a modernizing upgrade of the facility at a cost of two million dollars ($2,000,000.00).
V. Time Line for SEP:
The SEP project shall be completed within one year of the Effective Date of Agreed Order number A-4637.