STATE OF INDIANA

COUNTY OF MARION

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SS:

BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

GRAIN PROCESSING CORPORATION,

Respondent.

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Case No. 2000-10115-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 Grain Processing Corporation (“Respondent”), which owns and operates the stationary corn processing facility with Plant ID No. 027-00046, located at 1443 South 300 West in Washington, Daviess 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 on July 20, 2001 via Certified Mail to:

 

J. T. Kautz, President

Grain Processing Corporation

Grain Processing Corporation

c/o C T Corporation System, Registered Agent

P.O. Box 349

36 S. Pennsylvania Street, Suite 700

1600 Oregon Street

Indianapolis, IN  46204

Muscatine, IA  52761

 

 

5.                  Pursuant to IC 13-30-3-3, IDEM issued an Amended Notice of Violation on September 26, 2002 via Certified Mail to:

 

J. T. Kautz, President

Grain Processing Corporation

Grain Processing Corporation

c/o C T Corporation System, Registered Agent

P.O. Box 349

36 S. Pennsylvania Street, Suite 700

1600 Oregon Street

Indianapolis, IN  46204

Muscatine, IA  52761

 

 

6.                  Respondent waives issuance of a Notice of Violation for violations not listed in the Notices of Violation and addressed in this Agreed Order and to the settlement period of sixty (60) days as provided for by IC 13-30-3-3.

 

7.                  Based on investigations by designated representatives of the Indiana Department of Environmental Management (IDEM) and compliance testing conducted on January 29-30, 2001, February 6, 7, and 12, 2001, March 19 - 20, 2001, May 31, 2001, June 1, 2001, July 2, 2001, October 16, 2001, January 24, 2002, March 14, 2002, November 12, 2002, Respondent has been found in violation of the following environmental statutes, rules, and/or permits:

 

a.         Pursuant to Construction Permit CP 027-7239-00046 operation condition 14(b), the amount of biogas to be burned in the biogas flare shall be limited to 8,858,400 cubic feet per 365 consecutive day period.

Beginning in August 2000, SO2 Emission Reports show the emissions of biogas emitted through the biogas flare to be in excess of the permitted limit, in violation of Construction Permit CP 027-7239-00046 operation condition 14(b).

Respondent continues to operate in excess of the biogas limit.  Respondent has submitted a request for permit modification to increase allowable levels of biogas that can be emitted through the biogas flare.

 

b.         Pursuant to Construction Permit CP 027-7239-00046 operation condition 19, the biogas flare is to be in operation at all times when biogas is released from the wastewater treatment plant.

A record review of the second, third, and forth quarter 2000 SO2 Emission Reports show that from approximately April 2000 to September 2000, the biogas flowing through the biogas flare was not combusted, in violation of Construction Permit CP 027-7239-00046 operation condition 19.

 

c.         Pursuant to Construction Permit CP 027-7239-00046 operation condition 12, the Corn Unloading Area Baghouse (CP01) has an allowable PM10 emission limit of 2.57 lbs/hr.

A compliance test on January 29, 2001 showed average PM10 emissions of 4.78 lbs/hr, in violation of Construction Permit CP 027-7239-00046 operation condition 12.

A re-test performed on May 29, 2001, demonstrated compliance with the PM10 limit.

 

d.         Pursuant to Construction Permit CP 027-7239-00046 operation condition 12, the Elevator Leg Aspiration Baghouse (FP05) has an allowable PM10 emission limit of 0.17 lbs/hr.

A compliance test on January 30, 2001 showed average PM10 emissions of 0.31 lbs/hr, in violation of Construction Permit CP 027-7239-00046 operation condition 12.

A re-test performed on May 30, 2001, demonstrated compliance with the PM10 limit.

 

e.         Pursuant to 326 IAC 2-2, any source implementing a modification at one of the major stationary sources listed under 326 IAC 2-2-1(p) which is located in an attainment or unclassifiable area as designated in 326 IAC 1-4, and which would result in a net emissions increase of actual or potential emissions that would equal or exceed one hundred (100) tons per year for carbon monoxide (CO), forty (40) tons per year for volatile organic compounds (VOCs), oxides of nitrogen (NOx), and sulfur dioxide (SO2), or more than twenty-five (25) or fifteen (15) tons per year for particulate matter (PM) and particulate matter of less than ten (10) microns (PM10), respectively, shall apply best available control technology (BACT).

 

f.          Pursuant to Construction Permit CP-027-7239-00046 operation condition 14a, the Germ Dryer Scrubber (FP12) has an allowable SO2 emission limit of 0.28 lbs/hr.

A compliance test conducted on March 19 – 20, 2001, showed average SO2 emissions of 11.0 lbs/hr, in violation of 326 IAC 2-2 and Construction Permit CP 027-7239-00046 operation condition 14a.

A compliance test on July 2, 2001 showed average SO2 emissions of 9.32 lbs/hr, in violation of 326 IAC 2-2 and Construction Permit CP 027-7239-00046 operation condition 14a.

A compliance test on October 16, 2001 showed average SO2 emissions of 0.49 lbs/hr, in violation of 326 IAC 2-2 and Construction Permit CP 027-7239-00046 operation condition 14a.

Respondent has failed to demonstrate compliance with the SO2 limit in Construction Permit CP 027-7239-00046 operation condition 14a.

Respondent has submitted a request for permit modification.

 

g.         Pursuant to Construction Permit CP 027-7239-00046 operation condition 12, the Germ Dryer Scrubber (FP12) has an allowable PM emission limit of 1.37 lbs/hr.

A compliance test conducted on March 19 – 20, 2001, showed average PM emissions of 3.20 lbs/hr, in violation of Construction Permit CP 027-7239-00046 operation condition 12.

A compliance test on July 2, 2001 showed average PM emissions of 4.80 lbs/hr, in violation of Construction Permit CP 027-7239-00046 operation condition 12.

A subsequent test performed on March 13, 2002, demonstrated compliance with the PM limit.

 

h.                  Pursuant to Construction Permit CP 027-7239-00046 operation condition 12, the Gluten Dryer Scrubber (FP13) has an allowable PM emission limit of 3.65 lbs/hr.

A compliance test conducted on February 6, 7 and 12, 2001, showed average PM emissions of 14.9 lbs/hr, in violation of 326 IAC 2-2 and Construction Permit CP 027-7239-00046 operation condition 12.

A compliance test on March 14, 2002 showed average PM emissions of 9.20 lbs/hr, in violation of Construction Permit CP 027-7239-00046 operation condition 12.

A compliance test on November 12, 2002 showed average PM emissions of 21.91 lbs/hr, in violation of Construction Permit CP 027-7239-00046 operation condition 12.

Respondent has failed to demonstrate compliance with the PM limit in Construction Permit CP 027-7239-00046 operation condition 12.

Respondent has submitted a request for permit modification for FP13 along with a BACT analysis.

 

i.                    Pursuant to Construction Permit CP 027-7239-00046 operation condition 12, the Dry Gluten Transport Baghouse (FP14) has an allowable PM10 emission limit of 0.085 lbs/hr.

A compliance test on January 24, 2002 showed average PM10 emissions of 0.400 lbs/hr, in violation of Construction Permit CP 027-7239-00046 operation condition 12.  A compliance test conducted on February 7, 2001 was invalid due to high water blank values.  No valid re-test has been conducted.  Respondent has failed to demonstrate compliance with the PM10 limit in Construction Permit CP 027-7239-00046 operation condition 12.

Respondent has submitted a request for permit modification.

j.                     Pursuant to Construction Permit CP 027-7239-00046 operation condition 7, testing, including the Corn Cleaning Baghouse (FP20) shall be performed no later than 180 days after initial start-up of the entire source.


Compliance tests conducted on February 13, 2001 and October 16, 2001 were invalid due to high water blank values.  Respondent has failed to perform testing of FP20 within 180 days after initial start-up of the source, in violation of Construction Permit CP 027-7239-00046 operation condition 7.

Respondent has submitted a request for permit modification.

 

k.                  Pursuant to Construction Permit CP 027-7239-00046 operation condition 12, the CGF Pellets, Dry Germ and Gluten Meal Loadout Baghouse (FP26) has an allowable PM10 emission limit of 0.17 lbs/hr.

A compliance test on February 7, 2001 was invalid due to high water blank values.  A compliance test on May 31, 2001 and June 1, 2001 showed average PM10 emissions of 0.45 lbs/hr, in violation of Construction Permit CP 027-7239-00046 operation condition 12.

No valid re-test has been conducted.  Respondent has failed to demonstrate compliance with the PM10 limit in Construction Permit CP 027-7239-00046 operation condition 12.

Respondent has submitted a request for permit modification.

 

l.                     Pursuant to Construction Permit CP 027-7239-00046 operation condition 14(a), the amount of corn processed shall be limited to 26,280,000 bushels per 365 consecutive day period.

Beginning in August 2004, SO2 Emission Reports show the corn processed to be in excess of the permitted limit, in violation of Construction Permit CP 027-7239-00046 operation condition 14(a).

Respondent continues to operate in excess of the permitted corn processed limit.  Respondent has submitted a request for permit modification.

 

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 Complainant or Complainant’s delegate, and has been received by Respondent.  This Agreed Order shall have no force or effect until the Effective Date.

 

2.                  IDEM recognizes that an application for a PSD permit modification was submitted in February 2007, and that several previous permit modifications were submitted in order to address permitting issues set forth in paragraphs 7a, f, h, i, j, k, and l described in the Findings of Fact above.  Regarding the permit conditions referenced in those paragraphs, this Agreed Order shall resolve noncompliance with those conditions through and including the time when a permit decision is issued in response to the February 2007 application.

 

3.                  All submittals required by this Agreed Order, unless Respondent is notified otherwise in writing by IDEM, shall be sent to:

 

Lynne Sullivan, Enforcement Case Manager

Office of Enforcement – Mail Code 60-02

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

4.                  Respondent is assessed a civil penalty of Two Hundred Eighty Thousand Dollars ($280,000).  Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date.  In the event that the civil penalty is not paid within thirty (30) days of the Effective Date, 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.

 

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:

 

Indiana Department of Environmental Management

Cashier – Mail Code 50-10C

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

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.                  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 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 permits or any applicable Federal or State law or regulation, except as noted in paragraph 2 above.

 

10.             IDEM or anyone acting on its behalf shall not be held liable for any costs or penalties Respondent may incur as a result of Respondent’s efforts to comply with this Agreed Order.

 

11.             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 this Agreed Order.

 

12.             Nothing in this Agreed Order shall prevent IDEM or anyone acting on its behalf from communicating with the 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.

 

13.             This Agreed Order shall remain in effect until Respondent satisfies the requirements contained in paragraph 4 of this Agreed Order, and a permit decision is rendered in response to the PSD applications submitted by Respondent in February 2007.

 

14.             This Agreed Order, and compliance with its terms, shall resolve all violations set forth in the Findings of Fact of this Agreed Order.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

Grain Processing Corporation

 

 

 

By:

 

 

By:

 

 

Craig Henry

 

Printed:

 

 

Chief, Air Section

 

Title:

 

 

Office of Enforcement

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

 

 

 

COUNSEL FOR COMPLAINANT:

 

COUNSEL FOR RESPONDENT:

For the Department of Environmental Management

 

 

 

 

 

By:

 

 

By:

 

 

 

 

 

 

 

Deputy Attorney General

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 2007.

 

 

For the Commissioner:

 

 

 

Signed on September 10, 2007

 

Robert B. Keene

 

Assistant Commissioner

 

Office of Legal Counsel and Enforcement