STATE OF INDIANA ) BEFORE THE INDIANA DEPARTMENT

) SS: OF ENVIRONMENTAL MANAGEMENT

COUNTY OF MARION )

COMMISSIONER OF THE DEPARTMENT )

OF ENVIRONMENTAL MANAGEMENT, )

)

Complainant, )

)

v. ) Case No. 1999-8658-W, and

) Case No. 1999-8931-W

)

) Greeneco, 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 (AComplainant@) of the Indiana Department of Environmental Management, a department of the State of Indiana created by IC 13-13-1-1.

2. Respondent is Greeneco, Inc. (ARespondent@), which owns and operates a land

development company, having its main business office located at P.O. Box 161,

Ellettsville, Indiana. Respondent is developing two (2) residential subdivisions

known as Greene Hills Estates and Hickory Hills Estates, located in Beech Creek

Township and Center Township, respectively, in Greene County, Indiana.

3. The Indiana Department of Environmental Management (AIDEM@) has jurisdiction over the parties and the subject matter of this action.

4. Pursuant to IC 13-30-3-3, on January 30, 2000 and February 18, 2000, IDEM issued a Notice of Violation for Greene Hills Estates and Hickory Hills Estates, respectively, via Certified Mail to:

Mr. Steven L. Lankford, President Mr. William C. Rueff, Registered Agent

Greeneco, Inc. Greeneco, Inc.

P. O. Box 161 8784 Station Street

Ellettsville, Indiana 47429 Fishers, Indiana 46038

5. The Indiana Department of Natural Resources (IDNR) conducted inspections of Greene Hills Estates, on the dates specified below:

November 25, 1998 January 20, 1999 February 3, 1999

February 24, 1999 April 7, 1999 May 19, 1999

June 10, 1999 July 8, 1999 September 14, 1999

October 27, 1999 December 1, 1999

The Indiana Department of Natural Resources (IDNR) conducted inspections of Hickory Hills Estates, on the dates specified below:

January 20, 1999 February 3, 1999 March 23, 1999

April 27, 1999 May 19, 1999 June 11, 1999 July 8, 1999 August 5, 1999 September 14, 1999

October 27, 1999 December 1, 1999

The following violations were in existence or observed at the time of these inspections:

a. Pursuant to 327 IAC 15-2-3, a general permit rule may regulate all designated categories of point sources for which a general permit rule exists.

b. Pursuant to 327 IAC 15-2-5(a), any person subject to the requirements of this article shall submit a Notice of Intent (NOI) letter that complies with this section.

Pursuant to 327 IAC 15-2-5(b), a NOI letter shall be submitted to the commissioner by the time specified under 327 IAC 15-3, or the time indicated in the applicable general permit rule.

The Respondent failed to submit NOI's for Green Hills Estates and Hickory Hills Estates prior to land disturbing activities, in violation of 327 IAC-15-2-5(b).

c. Pursuant to 327 IAC 15-5-2(1), regarding storm water run off associated with construction activity, the requirements under this rule apply to all persons who do not obtain an individual NPDES permit under 327 IAC 15-2-6.

d. Pursuant to 327 IAC 15-5-2(2), regarding storm water run off associated with construction activity, the requirements under this rule apply to all persons who meet the general permit rule applicability requirement under 327 IAC 15-2-3.

e. Pursuant to 327 IAC 15-5-2(3), regarding storm water run off associated with construction activity, the requirements under this rule apply to all persons who are involved in construction activity, which includes clearing, grading, excavating, and other land disturbing activities, except operations that result in the disturbance of less than five (5) acres of total land area and which are not part of a larger common plan of development or sale.

The Greene Hills Estates development and Hickory Hills Estates development involve construction activity of more that five (5) acres of total land area and therefore are regulated by a general permit pursuant to 327 IAC 15-2-3 and must comply with 327 IAC 15-5.

f. Pursuant to 327 IAC 15-5-7, general conditions for construction activity erosion control measures state that the operator shall develop an erosion control plan in accordance with the requirements under this section. The erosion control plan must assure that erosion control measures are implemented and maintained, and that off-site sedimentation does not occur during the period of construction activity at a site. The operator shall maintain all erosion control measures necessary to meet the requirements of this rule.

Inspections of the Greene Hills Estates Subdivision by the Indiana Department of Natural Resources (IDNR), Division of Soil Conservation staff conducted on November 25, 1998, January 20, 1999, February 3, 1999, February 24, 1999, April 7, 1999, May 19, 1999, June 10, 1999, July 8, 1999, September 14, 1999, October 27, 1999 and December 1, 1999, indicated that the Respondent has failed to develop, implement and maintain adequate erosion control measures in violation of the above noted provisions of 327 IAC 15-5 and 327 IAC 15-5-7.

Inspections of the Hickory Hills Estates Subdivision by the Indiana Department of Natural Resources (IDNR), Division of Soil Conservation staff conducted on January 20, 1999, February 3, 1999, March 23, 1999, April 27, 1999, May 19, 1999, June 11, 1999, July 8, 1999, August 5, 1999, September 14, 1999, October 27, 1999 and December 1, 1999, indicated that the Respondent has failed to develop, implement and maintain adequate erosion control measures in violation of the above noted provisions of 327 IAC 15-5 and 327 IAC 15-5-7.

The Respondent failed to submit adequate Erosion Control Plans for Greene Hills Estates and Hickory Hills Estates prior to land disturbing activities, in violation of 317 IAC 15-5-7.

g. Pursuant to 327 IAC 15-5-10(c), if maintenance of remaining erosion control measures is not properly maintained by the person operating the property, the commissioner may pursue enforcement against that person for correction of deficiencies under 327 IAC 15-1-4.

h. Pursuant to IC 13-30-2-1, no person may discharge, emit, cause, allow, or threaten to discharge, emit, cause, or allow any contaminant or waste including any noxious odor, either alone or in combination with contaminants from other sources, into the environment or into any publicly owned treatment works in any form which causes or would cause pollution which violates rules, standards, or discharge of emission requirements adopted by the appropriate board pursuant to this article.

Inspections of the Greene Hills Estates Subdivision by the Indiana Department of Natural Resources, Division of Soil Conservation staff conducted on November 25, 1998, January 20, 1999, February 3, 1999, April 7, 1999, May 19, 1999, July 8, 1999, September 14, 1999, and October 27, 1999, indicated evidence of off-site sedimentation, in violation of IC 13-30-2-1.

Inspections of the Hickory Hills Estates Subdivision by the Indiana Department of Natural Resources, Division of Soil Conservation staff conducted on January 20, 1999, March 23, 1999, April 27, 1999, May 19, 1999, June 11, 1999, July 8, 1999, September 14, 1999, and October 27, 1999, indicated evidence of off-site sedimentation, in violation of IC 13-30-2-1.

6. On March 5, 1999, IDEM, Office of Water Management (OWM), Pretreatment & Urban Wet Weather Section sent Warning of Noncompliance letters to the Respondent for Greene Hills Estates and Hickory Hills Estates requesting the Respondent comply with the IDNR inspection conducted at both sites on February 3, 1999.

7. On March 10, 1999, Office of Water Management (OWM), Pretreatment & Urban Wet Weather Section sent Warning of Noncompliance letters to the Respondent for Greene Hills Estates and Hickory Hills Estates requesting the Respondent submit NOI's and adequate Erosion Control Plans.

8. On May 3, 2000, the Respondent submitted adequate Erosion Control Plans for Greene

Hills Estates and Hickory Hills Estates.

9. On May 17, 2000, the Respondent submitted the required NOI documents to obtain

Notice of Sufficiency letters from IDEM for both developments.

10. 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. Respondent shall comply with 327 IAC 15-5 and 327 IAC 15-5-7 by implementing and initiating maintenance of adequate erosion control measures at the Greene Hills Estates and Hickory Hills Estates developments within seven (7) days of the Effective Date.

3. The Respondent shall comply with 327 IAC 15-5 and 327 IAC 15-5-7 by inspecting the Greene Hills Estates and Hickory Hills Estates developments on a weekly basis and after rainfall events to insure that all erosion and sediment control measures are properly maintained, including removing accumulated sediment from behind silt fences and from storm inlets, assuring that conveyance channels and swales are stabilized, and installing additional erosion control measures if determined necessary. The weekly inspections shall be maintained in a log for documentation and review purposes. These provisions shall remain in effect until the Respondent submits notification of completion of the construction activity as provided by 327 IAC 15-5-11 and IDEM approves the adequacy of the remaining erosion control measures as provided by 327 IAC 15-5-8(b).

4. All submittals required by this Agreed Order, unless notified otherwise in writing, shall be sent to:

Linda L. McClure, Enforcement Case Manager

Office of Enforcement

Indiana Department of Environmental Management

100 N. Senate Avenue

P. O. Box 6015

Indianapolis, IN 46206-6015

5. Respondent is assessed a civil penalty of Fifteen Thousand and Twenty-Five Dollars ($15,025). This includes a civil penalty of Five Thousand and Five Hundred Dollars ($5,500) assessed for Cause No. 1999-8658-W and a civil penalty of Nine Thousand Five Hundred and Twenty-Five Dollars ($9,525) assessed for Cause No. 1999-8931-W. 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 and Five Dollars ($3,005). 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) consisting of placement of a parcel of land under a permanent Conservation Easement. Within fifteen (15) days of completing this SEP, Respondent shall submit written notice and documentation to IDEM, which substantiates all actions taken with respect to the SEP. The Respondent estimates that the profit lost from not developing the parcel of land into three (3) single family dwelling homes is Twenty Five Thousand and Five Hundred Dollars ($25,500). The proposed SEP has a 2.1:1 ratio.

As a Supplemental Environmental Project, Respondent shall forego the extension of the Hickory Hills subdivision into the 8.66-acre parcel located West of Lots 13 and 14. The entire 8.66-acre parcel of land is wooded with a mature native hardwood forest. The adjoining area to the North and South is heavily wooded and the area to the West is pasture. The Respondent had originally intended to develop the 8.66-acres parcel into three (3) single-family dwellings. Respondent shall place this parcel of land under a permanent Conservation Easement, to be held by a third party, which will also mange the land as required by the Conservation Easement. This shall be accomplished by no later than one (1) year from the Effective Date. The long-term goal of the Conservation Easement shall be to preserve the 8.66-acre parcel of land. The Conservation Easement shall contain, but not be limited to the following easement provisions:

a. No development (commercial, industrial or housing)

b. No tree cutting except to remove dead, diseased or dangerous trees

c. No oil, gas, stone, coal or other mineral extraction

d. No dumping trash or hazardous waste

e. No advertising billboards

f. No motorized off-road vehicles

Implementation of this SEP will prevent the removal of an estimated two and three-fourths acres of trees and habitat destruction caused by earthwork activity for utility, road and home development. The SEP will preserve 8.66 acres of Indiana hardwood forest for present and future enjoyment of both wildlife and the surrounding community.

In the event that the Respondent does not complete the SEP within one (1) year from the Effective Date, the full amount of the civil penalty as stated in paragraph 5 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.

Attachment A contains two (2) maps which give the location of the parcel of land to be preserved. The two maps were supplied by the Respondent.

6. In the event the terms and conditions of the following paragraphs are violated, the Complainant may assess and the Respondent shall pay a stipulated penalty in the following amount:

Violation Penalty

Failure to comply with Order paragraph No. 2 $500 per week

Failure to comply with Order paragraph No. 3 $500 per week

7. 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 any of the stipulated penalties 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.

8. 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 N. Senate Avenue

P. O. Box 7060

Indianapolis, IN 46207-7060

9. In the event that the civil penalty required by Order paragraph 5, 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.

10. This Agreed Order shall apply to and be binding upon the Respondent, its successors 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.

11. 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.

12. 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.

13. This Agreed Order shall remain in effect until Respondent has complied with all terms and conditions of this Agreed Order and IDEM has issued a Resolution of Cause letter to the Respondent.

TECHNICAL RECOMMENDATION: RESPONDENT:

Department of Environmental Management

By: _________________________ By: _________________________

Mark W. Stanifer,

Chief, Water Section Printed: ______________________

Office of Enforcement

Title: ________________________

Date: ________________________ Date: ________________________

COUNSEL FOR COMPLAINANT: COUNSEL FOR RESPONDENT:

Department of Environmental Management

By: _________________________ By: ________________________

Nancy A. Holloran

Office of Legal Counsel

Department of Environmental Management

Date: _______________________ Date: ______________________

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS _____ DAY OF ____________________, 2000.

For the Commissioner:

Signed October 3, 2000

___________________________

Felicia A. Robinson

Assistant Commissioner

Office of Enforcement