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. 2001-10426-A

)

STEEL WAREHOUSE, 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 ("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 Steel Warehouse, Inc. ("Respondent"), which owns and operates the steel pickling plant #141-00155 located at 2722 West Tucker Drive, in South Bend, St. Joseph County, Indiana ("Site").

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

4. Pursuant to IC 13-30-3-3, on June 21, 2001, IDEM issued a Notice of Violation via Certified Mail to:

Gerald Lerman, President and Registered Agent

Steel Warehouse, Inc.

2730 West Tucker Drive

South Bend, Indiana 46624

• An inspection, on August 31, 2000, was conducted at the Site by a representative of IDEM's Office of Air Quality (OAQ) . The following violations were in existence or observed at the time of this inspection:

A. Pursuant to Federally Enforceable Operating Permit F141-7157-00155, Section D.1.3, HCL emissions from the pickling line shall not exceed 2.05 pounds per hour. Emission testing determined average HCL emissions were 3.14 pounds per hour, a violation of Federally Enforceable Operating Permit F141-7157-00155, Section D.1.3.

B. Pursuant to Federally Enforceable Operating Permit F141-7157-00155, Section D.1.6, the Permittee shall take scrubbing liquid and make-up water flow rate readings from scrubber CE-1, and pressure drop readings from across the scrubber CE-1, at least once per day when the unit being controlled is in operation. The scrubbing liquid flow rate could not be measured on August 31, 2000, a violation of Federally Enforceable Operationg Permit F141-7157-00155, Section D.1.6.

C. Pursuant to Federally Enforceable Operation Permit F141-7157-00155, Section B.15, deviations from requirements, the probable cause of such deviations, and any corrective actions or preventive measures taken shall be reported to IDEM within ten (10) calendar days from the date of the discovery of the deviation. This facility failed to report the deviation associated with the scrubber recirculating pump, a violation of Federally Enforceable Operating Permit F141-7157-00155, Section B.15.

6. A flow meter for the scrubbing liquid flow rate was installed at this facility on September 27, 2000.

7. Emission testing of HCL emissions from the pickling line was conducted on November 2, 2000, and showed compliance with the limit of 2.05 pounds per hour.

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. Respondent shall comply with conditions B.15, D.1.3, and D.1.6 of FESOP F141-7157-00155.

3. All submittals required by this Agreed Order, unless notified otherwise in

writing, shall be sent to:

Melissa A. Farrington, Enforcement Case Manager

Office of Enforcement

Indiana Department of Environmental Management

100 N. Senate Avenue

P. O. Box 6015

Indianapolis, IN 46206-6015

4. Respondent is assessed a civil penalty of Twelve Thousand, Four Hundred Dollars ($12,400). Said penalty amount shall be due and payable to the Environmental Management Special Fund within 30 days of the Effective Date of this Agreed Order.

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:

Cashier

IDEM

100 N. Senate Avenue

P. O. Box 7060

Indianapolis, IN 46207-7060

6. In the event that the civil penalty required by Order paragraph four (4), 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.

7. 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.

8. 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.

9. 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.

10. This Agreed Order shall remain in effect until Respondent has complied with all terms and conditions of this Agreed Order.

TECHNICAL RECOMMENDATION: RESPONDENT:

Department of Environmental Management Steel Warehouse, Inc.

By: _________________________ By: _________________________

David P. McIver

Chief, Air Enforcement Section Printed: ______________________

Office of Enforcement

Title: ________________________

Date: ________________________ Date: ________________________

COUNSEL FOR COMPLAINANT: COUNSEL FOR RESPONDENT:

Department of Environmental Management

By: _________________________ By: ________________________

Jay Rodia

Office of Legal Counsel

Department of Environmental Management

Date: _______________________ Date: ______________________

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS __1___ DAY OF __November________, 2001.

For the Commissioner:

Signed__________

Felicia A. Robinson

Assistant Commissioner

Office of Enforcement