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 Subaru-Isuzu Automotive Inc. (hereinafter referred to as "Respondent"), which is a company doing business at 5500 State Road 38 East, located in Tippecanoe 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 May 18, 2000, via Certified Mail to:

5. Respondent notified the U.S. EPA of Large Quantity Generator activities on September 1, 1988, and was assigned the EPA identification number IND 000 715 276.

6. Respondent was inspected on January 28, 2000 by Mr. John Crawford of IDEM's Office of Land Quality (OLQ). Based on this investigation, IDEM contends that the following violations were in existence or observed at the time of the inspection.

7. On August 11, 2000, the parties met to discuss the allegations cited in the Notice of Violation and proposed Agreed Order.

8. In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Agreed 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. Within thirty (30) days of the Effective Date of the Order, Respondent shall ensure that all equipment subject to Subpart BB of 40 CFR Part 265 ("Subpart BB"), such as pumps, valves, and flanges, that is located so as to be accessible to Respondent's personnel without requiring personnel to be elevated more than two meters above the floor or other support surface, is marked so that the equipment is readily distinguishable from other equipment.

3. Within thirty (30) days of the Effective Date of the Order, Respondent shall conduct monitoring as required by Subpart BB of 40 CFR Part 265 for all pumps and valves in light liquid service. For valves that are designated as difficult-to-monitor, Respondent shall provide IDEM with a written plan that explains how Respondent shall monitor each valve at least once each calendar year, in accordance with 40 CFR 265.1058(h)(3). Respondent shall maintain a record of all monitoring results.

4. Within seventy-five (days) of the Effective Date of the Order, Respondent shall ensure that all tank openings have either a closure device or are connected to a control device as required by Subpart CC of 40 CFR Part 265.

5. In lieu of providing all tank ancillary equipment with secondary containment, Respondent shall implement a Solvent Recovery System which reclaims spent purge solvent and returns the reclaimed solvent to the paint purge systems in Respondent's Paint shop, for reuse consistent with the provisions of 40 CFR 261.4(a)(8). Respondent shall implement the Solvent Recovery System in accordance with the schedule below:

Within five (5) working days after the date on which the Solvent Recovery System becomes operational and is placed online, Respondent shall provide written notification of such fact to IDEM. Respondent's obligations under Order paragraphs 2 through 4 of this Agreed Order shall terminate upon the date of IDEM's receipt of this notification.

If Respondent is unable to meet an interim date in the above schedule, within ten (10) days of the interim date Respondent will provide IDEM with written certification that Respondent is able to, and will, complete implementation of the Solvent Recovery System by the final date of the schedule. Such a certification by Respondent shall include an explanation of why the schedule was not adhered to, a day by when work will be reinitiated, and a description of how the overall schedule will be met despite the failure to meet the interim schedule date. Respondent's failure to provide such a certification may result in Respondent being deemed to have failed to comply with the implementation schedule.

If Respondent does not implement a solvent recovery system in accordance with the above schedule, Respondent shall, within thirty (30) days of failure to comply with the above schedule, provide all tank ancillary equipment with secondary containment. Respondent shall provide the secondary containment within thirty (30) days of failure to comply with the above schedule.

6. Within thirty (30) days of the Effective Date of the Order, Respondent shall submit to IDEM a written, detailed explanation of how Orders 2 through 4 will be accomplished. Respondent shall provide IDEM with quarterly reports on the status of implementation of Order 5.

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

8. 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."

9. "Force Majeure", for purposes of this Agreed Order, is defined as any event arising from causes totally beyond the control and without fault of the Respondent that delays or prevents the performance of any obligation under this Agreed Order despite Respondent's best efforts to fulfill the obligation. The requirement that the Respondent exercise "best efforts to fulfill the obligation" includes using best efforts to anticipate any potential force majeure event and best efforts to address the effects of any potential force majeure event (1) as it is occurring and (2) following the potential force majeure event, such that the delay is minimized to the greatest extent possible. "Force Majeure" does not include changed business or economic conditions, financial inability to complete the work required by this Agreed Order, or increases in costs to perform the work.

The Respondent shall notify IDEM by calling within three (3) calendar days and by writing no later than seven (7) calendar days after it has knowledge of any event which the Respondent contends is a force majeure. Such notification shall describe the anticipated length of the delay, the cause or causes of the delay, the measures taken or to be taken by the Respondent to minimize the delay, and the timetable by which these measures will be implemented. The Respondent shall include with any notice all available documentation supporting its claim that the delay was attributable to a force majeure. Failure to comply with the above requirements shall preclude Respondent from asserting any claim of force majeure for that event. The Respondent shall have the burden of demonstrating that the event is a force majeure. The decision of whether an event is a force majeure shall be made by IDEM.

If a delay is attributable to a force majeure, IDEM shall extend, in writing, the time period for performance under this Agreed Order, by the amount of time that is directly attributable to the event constituting the force majeure.

10. Respondent is assessed a civil penalty of Sixteen Thousand Two Hundred Dollars ($16,200). Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date of this Agreed Order.

11. 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:

12. 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.

13. 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:

14. In the event that the civil penalty required by paragraph 10 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.

15. 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.

16. 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.

17. 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.

18. This Agreed Order shall remain in effect until IDEM issues a Resolution of Cause letter to Respondent.