STATE OF INDIANA ) BEFORE THE INDIANA DEPARTMENT
) SS: OF ENVIRONMENTAL MANAGEMENT
COUNTY OF MARION )
COMMISSIONER OF THE DEPARTMENT )
OF ENVIRONMENTAL MANAGEMENT, )
)
Complainant, )
) CAUSE NOS. H-13818 &
v. ) SW-418
ROLLS-ROYCE CORPORATION )
(f.k.a. ALLISON ENGINE COMPANY) )
)
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. 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.
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 Rolls-Royce Corporation, f.k.a. Allison Engine Company, (hereinafter referred to as "Respondent"), which is a company doing business at 2355 S. Tibbs Avenue, located in Marion County, 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 on January 20, 2000, via Certified Mail to:
Mr. S. Michael Hudson, President CT Corp., Registered Agent
Allison Engine Company for Allison Engine Company
2001 S. Tibbs Avenue One North Capitol
Indianapolis, IN 46241 Indianapolis, IN 46204
5. After the date of issuance of the Notice of Violation, Mr. Eric Pedersen, Senior Legal Counsel, replaced Mr. S. Michael Hudson as the point of contact for Rolls-Royce Corporation.
6. Respondent manufactures gas turbines and components for use in commercial and military aircraft. Hazardous waste is generated from several processes which include electroplating, machining, blasting, grinding, cleaning, painting, and testing. Respondent notified as a Large Quantity Generator on January 29, 1986, and operates with the U.S. EPA identification number IND 000 806 836. The surface impoundment, which is the subject of Finding 7 l. below, was recently assigned the U.S. EPA identification number INR 000021436.
7. Based upon an investigation of the facility on June 14-15, 1999, and August 3, 1999, by the Office of Land Quality (hereinafter referred to as AOLQ@) of IDEM, IDEM contends that the following violations were in existence or observed at the time of the inspection:
a) Pursuant to 40 CFR 262.34(a)(2), a generator may accumulate hazardous waste on-site for 90 days or less without a permit, provided that the date when the accumulation begins is clearly marked and visible for inspection on each container. Based upon information gathered by IDEM, Respondent failed to label the following containers with the start of accumulation date:
1. Five (5) 250-gallon totes of alloy mill liquid sludge (D002, F007, D008) located in the Plant 5 Waste Treatment Area:
2. One (1) 55-gallon container of waste thinner (D001, F003, F005) located in the Plant 5 Waste Treatment Area; and
3. One (1) 55-gallon container of water and paint (D001, F003, F005) located in the Plant 5 Waste Treatment Staging Dock.
All of the above violations were corrected at the time of the inspection.
b) Pursuant to 40 CFR 262.34(a)(3), a generator may accumulate hazardous waste on-site for 90 days or less without a permit, provided that containers are marked with the words AHazardous Waste.@ Based upon information gathered by IDEM, Respondent failed to label five (5) 250-gallon totes of alloy mill liquid sludge (D002, F007, D008) located in the Plant 5 Waste Treatment Area with the words, AHazardous Waste.@
The above violation was corrected at the time of the inspection.
c) Pursuant to 40 CFR 262.34(c)(1)(ii), a generator may accumulate as much as 55 gallons of hazardous waste at or near the point of generation without a permit and without complying with 40 CFR 262.34(a), provided that the containers are marked with either the words AHazardous Waste@ or with other words describing the contents. Based upon information gathered by IDEM, Respondent failed to label the following satellite accumulation containers with the words AHazardous Waste@ or with other words that identify the contents of the containers:
1. One (1) small tote of trap sludge located next to the drum rinse machine in the Plant 5 Waste Treatment Area;
2. One (1) 5-gallon bucket of cyanide waste (F007) located at the fill station for the waste cyanide tank at Plant 5; and
3. One (1) 55-gallon container of waste fuel and oil (D001) located at Plant 5 Test Cell #113.
Respondent notified IDEM on March 20, 2000, that the above violation has been corrected.
d) Pursuant to 40 CFR 262.34(c)(1)(i) referencing 40 CFR 265.173, a container holding hazardous waste must always be closed during storage, unless necessary to add or remove waste. Based upon information gathered by IDEM, Respondent failed to store the following satellite accumulation containers closed:
1. One (1) small tote of trap sludge located next to the drum rinse machine in the Plant 5 Waste Treatment Area;
2. One (1) 5-gallon bucket of cyanide waste (F007) located at the fill station for the waste cyanide tank at Plant 5;
3. One (1) 55-gallon container of waste fuel (D001) located at Plant 5 Test Cell #143;
4. One (1) 55-gallon container of waste fuel and oil (D001) located at Plant 5 Test Cell #113;
5. One (1) 55-gallon container of cyanide waste (F007, F008) located in the Plant 8 0862 Plating Department; and
6. One (1) 55-gallon container of solvent waste (D001, F003, F005) located at the Plant 8 Maintenance Paint Shop.
Respondent notified IDEM on March 20, 2000, that the above violation has been corrected.
e) Pursuant to 40 CFR 262.34(a)(4) referencing 40 CFR 265.16(c), facility personnel must take part in an annual review of the initial training that teaches them to perform their duties in compliance with the hazardous waste management rules. Based upon information gathered by IDEM, Respondent failed to provide an employee, Barry Chapman, with annual training.
Respondent notified IDEM on March 20, 2000, that Mr. Chapman had been provided with annual training, but that the training records were not available for review at the time of the inspection. This violation has been corrected.
f) Pursuant to 40 CFR 262.34(a)(1)(ii) referencing 40 CFR 265.193(e)(2)(iv), vault systems must be provided with an impermeable interior coating or lining that is compatible with the stored waste and that will prevent migration of waste into the concrete. Based upon information gathered by IDEM, Respondent failed to provide an impermeable coating or lining to the secondary containment system for the waste cyanide tank.
Respondent notified IDEM on March 20, 2000, that an impervious coating has been applied, and provided IDEM with certification of the coating system by a registered engineer on May 15, 2000.
g) Pursuant to IC 13-30-2-1(4), no person shall deposit or cause or allow the deposit of any contaminants or solid waste upon the land, except through the use of sanitary landfills, incineration, composting, garbage grinding, or another method acceptable to the solid waste management board. Based upon information gathered by IDEM, Respondent allowed the deposit of used oil from the chip draining process to the land along the south side of the By-Products Area.
On March 20, 2000, Respondent notified IDEM that drainage from the chip processing area is being directed to a sewage drain, and provided IDEM with
an AInvestigation Workplan@ and ASoil and Groundwater Investigation Results.@ IDEM, after review of the documents, determined that the information submitted was insufficient to determine compliance with the requirements.
Respondent submitted modifications to the "Investigation Workplan" and to the "Soil and Groundwater Investigation Results" on September 5 & 8, 2000 for IDEM review. IDEM provided comments to Respondent on the "Investigation Workplan" on October 4, 2000. Respondent submitted the revised "Investigation Workplan" with analytical QA/QC documentation to IDEM on October 13, 2000. IDEM has completed review of the "Investigation Workplan" and found it to be acceptable. Respondent submitted a revised "Soil and Groundwater Investigation Results" on October 16, 2000. As of this date, IDEM has completed a partial review of the "Soil and Groundwater Investigation Results," but final approval cannot be given until data validation is completed.h) Pursuant to 329 IAC 3.1-16-2(7) and 40 CFR 273.34, a large quantity handler of universal waste must label or mark the universal waste to identify the type of universal waste. Based upon information gathered by IDEM, Respondent failed to label the following with the proper universal waste marking:
1. Eleven (11) boxes and three (3) skids of fluorescent tubes in the Plant 5 Waste Treatment Area; and
2. Three (3) boxes and three (3) cylinders of fluorescent tubes in the Plant 8 Oil Stores.
Respondent notified IDEM on June 21, 1999, that the above violation was corrected on June 16, 1999.
i) Pursuant to 329 IAC 13-4-3(d), generators must label all used oil containers and aboveground tanks with the words AUsed Oil.@ Based upon information gathered by IDEM, Respondent failed to label the following containers or tanks with the words AUsed Oil@:
1. One (1) 55-gallon container marked waste oil, one (1) 55-gallon container of oil sludge, and one (1) 55-gallon container of used oil located in the Waste Treatment Area;
2. One (1) 15,000-gallon tank (Tank #105) labeled waste oil and one (1) 15,000-gallon tank (Tank #103) labeled waste soluble coolants located in the Oil Storage Area; and
3. One (1) 55-gallon container marked waste oil located in the Maintenance Courtyard.
j) Pursuant to 40 CFR 262.34(a), a generator may accumulate hazardous waste on-site for 90 days or less without a permit or without having interim status, provided that the waste is placed in a container, tank, or on a drip pad. Based upon information gathered by IDEM, Respondent accumulated cyanide contaminated plating fixtures (F008) in a crate located in the Waste Treatment Area, and ten (10) spent anodes from the chrome tank on a pallet in the 0862 Plating Department satellite accumulation area.
Respondent notified IDEM on June 21, 1999, that the above violation was corrected on June 17, 1999.
k. Pursuant to 40 CFR 268.7(a)(3)(i), a generator must send a one-time Land Disposal Restriction (LDR) notification to each treatment, storage, or disposal facility which contains all of the proper information. Based upon information gathered by IDEM, Respondent failed to include the D011 waste code on the LDR notification for 3,000 gallons of silver cyanide/sodium hydroxide (D002, F007) shipped June 5, 1999, on manifest INA 1373307.
Respondent informed IDEM on June 21, 1999, that the above violation was corrected on June 21, 1999.
l) Pursuant to 40 CFR 265.228(b)(1), the owner or operator of a surface impoundment in which wastes, waste residues, or contaminated materials remain after closure must maintain the integrity and effectiveness of the final cover, including making repairs to the cover as necessary to correct the effects if settling, subsidence, erosion, or other events. Based upon information gathered by IDEM, Respondent failed to maintain the integrity of the final cover of the surface impoundment. Specifically, erosion was observed along the north and south edges of the surface impoundment and animal burrows were observed along the east edge. Also, the cover was disturbed and the vegetation was inadequate along the eastern side due to vehicular traffic. IDEM observed that tire ruts had been repaired, but the vegetation was sparse.
On March 20, 2000, Respondent provided IDEM with pictures of repairs made to the surface impoundment.
m) Pursuant to 329 IAC 10-4-2, no person shall cause or allow the storage, containment, processing, or disposal of solid waste in a manner which creates a threat to human health or the environment, including the creating of a fire hazard, vector attraction, air or water pollution, or other contamination. This facility allowed the open dumping of coal ash on the ground along an access road on the east side of the facility.
n) Pursuant to 329 IAC 10-4-3, open dumping and open dumps, as those terms are defined in IC 13-11-2-146 and IAC 13-11-2-147, are prohibited. This facility allowed the open dumping of coal ash on the ground along an access road on the east side of the facility.
o) Pursuant to IC 13-30-2-1(3), IC 13-30-2-1(4), and IC 13-30-2-1(5), a person may not deposit any contaminants upon the land in a place and manner that creates or would create a pollution hazard that violates or would violate a rule adopted by one (1) of the boards, deposit or cause or allow the deposit of any contaminants or solid waste upon the land, except through the use of sanitary landfills, incineration, composting, garbage grinding, or another method acceptable to the solid waste management board, or dump or cause or allow the open dumping of garbage or any other solid waste in violation of rules adopted by the solid waste management board. Based upon information gathered by IDEM, Respondent created an open dump by depositing approximately 3000 yd3 of coal ash on the ground along an access road on the east side of the facility. IDEM observed that the coal ash was placed on the ground without a liner or any means to control runoff from the pile.
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 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. In the future, Respondent shall ensure that all containers holding hazardous waste in less than ninety day accumulation areas are labeled with the start of accumulation date, pursuant to 40 CFR 262.34(a)(2).
3. In the future, Respondent shall ensure that all hazardous waste being accumulated on-site is labeled with the words, AHazardous Waste,@ pursuant to 40 CFR 262.34(a)(3).
4. In the future, Respondent shall ensure that satellite accumulation containers are labeled with the words AHazardous Waste@ or with other words that identify the contents of the containers, pursuant to 40 CFR 262.34(c)(1)(ii).
5. In the future, Respondent shall ensure that satellite accumulation containers are kept closed, except when it is necessary to add or remove waste, pursuant to 40 CFR 265.173(a).
6. In the future, Respondent shall ensure that hazardous waste training is provided and documentation of training is maintained, pursuant to 40 CFR 265.16.
7. In the future, Respondent shall ensure that secondary containment systems are maintained pursuant to 40 CFR 265.193.
8. Within thirty (30) days of the date Respondent receives comments from IDEM, if any, to the ASoil and Groundwater Investigation Results,@ if deemed necessary by IDEM, Respondent shall submit additional documentation and/or a plan to IDEM, including a schedule, to address IDEM's comments. Respondent shall respond to any comments received from IDEM, if any, on the additional documentation and/or plan within thirty (30) days of Respondent's receipt of such comments. Upon Respondent's receipt of IDEM's approval of the plan, Respondent shall implement the work, if any, in accordance with the schedule included in the approved plan. The general requirements for work to be performed pursuant to this paragraph are IDEM's Interim Draft Risk Integrated System of Closure (RISC), February 18, 1999.
9. In the future, Respondent shall ensure that all universal waste is properly labeled, pursuant to 329 IAC 3.1-16-2(7) and 40 CFR 273.34.
10. In the future, Respondent shall ensure that containers or tanks of Used Oil are properly labeled pursuant to 329 IAC 13-4-3(d).
11. In the future, Respondent shall ensure that all hazardous waste being accumulated on-site is placed in a container, tank or on a drip pad, pursuant to 40 CFR 262.34(a).
12. In the future, Respondent shall ensure that Land Disposal Restriction notifications contain all of the proper information, pursuant to 40 CFR 268.7(a)(3)(i).
13. In the future, Respondent shall ensure that repairs are made to the final cover of the surface impoundment, pursuant to 40 CFR 265.228(b)(1).
14. Within one hundred twenty (120) days of the Effective Date of this Order, Respondent shall either:
a. remove all coal ash to a state-approved solid waste management facility and submit documentation of compliance to IDEM;
15. If the Respondent chooses to handle the coal ash through Order Condition 14(b), the beneficial reuse request should include a discussion on how and where the coal ash is to be reused, and the time frame to complete the beneficial reuse project(s). If the beneficial reuse project(s) is approved, it will become an enforceable part of this Agreed Order. If the beneficial reuse project(s) is denied, the Respondent shall have sixty (60) days from the date of the denial letter to lift and remove all the coal ash to a state-approved solid waste management facility and submit documentation of compliance.
16. All submittals required by this Agreed Order, unless notified otherwise in writing, shall be sent to:
Ms. Brenda J. Lepter, Case Manager
Office of Enforcement
Indiana Department of Environmental Management
100 North Senate Avenue
P.O. Box 6015
Indianapolis, Indiana 46206-6015
17. All submittals required by this Agreed Order shall contain the following certification:
"I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based upon my inquiry of the person or persons who manage the system, or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and belief, true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations."
18. Respondent is assessed a civil penalty of Forty One Thousand Eight Hundred Dollars ($41,800). Within thirty (30) days of the Effective Date of the Agreed Order, Respondent shall pay a portion of this penalty in the amount of Eight Thousand Three Hundred and Sixty Dollars ($8,360). 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 (‘SEP"), Exhibit A of this Agreed Order. Respondent estimates that this SEP will cost a minimum of Sixty Six Thousand Eight Hundred Dollars ($66,800). This is based on whether the cleaning systems implemented offset the civil penalty at a 2:1 ratio (see VI. 1, 3, & 4 of Exhibit A). The minimum cost of the SEP may be more depending on whether the cleaning system implemented offsets the civil penalty at a 3:1 ratio (see VI.2 of Exhibit A). Within ten (10) 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 the minimum acceptable expense as determined by the offset ratio(s), Respondent shall pay the remainder of the civil penalty which is not offset by the SEP as described in Exhibit A.
As a Supplemental Environmental Project, Respondent shall implement at least one of the cleaning systems detailed in Exhibit A to reduce organic solvent usage at the facility. Multiples of each cleaning system may be implemented to meet the minimum cost of the
SEP. Respondent shall complete implementation of the chosen cleaning system(s) by no later than twenty-four (24) months from the Effective Date of the Agreed Order. Implementation of this SEP will reduce organic solvent usage at the facility.
In the event that the Respondent does not complete the SEP within twenty-four (24) months of the Effective Date of the Order, the full amount of the civil penalty as stated in paragraph 18 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.
19. In the event the following terms and conditions are violated, the Complainant may assess and the Respondent shall pay a stipulated penalty in the following amounts:
Violation
PenaltyOrder Condition 8. $1,000 per day
Order Conditions 14(a), 14(b) or 14(c) $1,000 per day
and/or 15.
20. Stipulated penalties shall be due and payable within thirty (30) days after Respondent receives written notice that the Complainant has determined a stipulated penalty is due. Assessment and payment of stipulated penalties shall not preclude the Complainant from seeking any additional relief against the Respondent for violation of the Agreed Order. In lieu of assessment of any of the stipulated penalty given above, the Complainant may seek any other remedies or sanctions available by virtue of Respondent's violation of this Agreed Order, or Indiana Law, including but not limited to civil penalties pursuant to IC 13-30-4.
21. Civil and stipulated 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 North Senate Avenue
P.O. Box 7060
Indianapolis, Indiana 46207-7060
22. In the event that the cash portion of the civil penalty required by paragraph 18 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.
23. 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.
24. 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 the Agreed Order did not contain the invalid terms.
25. 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.
26. This Agreed Order shall remain in effect until IDEM issues a Resolution of Cause letter to Respondent.
TECHNICAL RECOMMENDATION: RESPONDENT:
Department of Environmental Management Rolls-Royce Corporation
By:___________________________ By:____________________________
Nancy L. Johnston, Chief
Hazardous Waste Section Printed:________________________
Office of Enforcement
Title:__________________________
Date: __________________________ Date:___________________________
COUNSEL FOR COMPLAINANT: COUNSEL FOR RESPONDENT:
Department of Environmental Management
By:___________________________ By:____________________________
Office of Legal Counsel
Date: __________________________ Date:___________________________
APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT, THIS __________ DAY OF __________________ 2000.
For the Commissioner:
Signed on December 12, 2000
___________________
Felicia A. Robinson
Assistant Commissioner
Office of Enforcement