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.

DALTON CORPORATION,

Respondent.

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Case No. 2001-11055-A,
Case No. 2001-11054-A,
Case No. 2003-13016-A,
Case No. 2004-14166-A,
Case No. 2005-14756-A,
Case No. 2005-14863-A,
Case No. 2005-14940-A, and
Case No. 2006-15502-A

 

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.  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, a department of the State of Indiana created by IC 13-13-1-1.

 

2.                  Respondent is Dalton Corporation (“Respondent”), which owns and operates gray iron foundries, including 1) the Warsaw Manufacturing Facility (“the Warsaw Site”), located at 1900 East Jefferson Street in Warsaw, Kosciusko County, Indiana; and 2) the Kendallville Manufacturing Facility, (“the Kendallville Site”), located at 200 West Ohio Street in Kendallville, Noble County, Indiana.

 

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, IDEM issued Notices of Violation via Certified Mail:

 

a.                  on March 6, 2002, in Case Nos. 2001-11054-A and 2001-11055-A, related to the violations described in Paragraph Nos. 5(a)(i) and (ii) herein;

 

b.         on January 9, 2006, in Case No. 2003-13016-A, related to the violations described in Paragraph Nos. 5(b) through 5(f) herein;

 

c.         on January 10, 2006, in Case No.2004-14166-A, related to the violation described in Paragraph No. 5(g)(i) herein;

 

d.         on January 9, 2006, in Case No. 2005-14756-A, related to the violations described in Paragraph No. 5(c) herein;

 

e.         on January 9, 2006, in Case No. 2005-14863-A, related to violations described in Paragraph No. 5(i) herein; and

 

f.          on January 10, 2006, in Case No. 2005-14940-A, related to violations described in Paragraph No. 5(j) herein, to:

 

Mr. Joseph L. Derita, President

Mr. Ron Schmucker, Registered Agent

Dalton Corporation

For Dalton Corporation

3755 Lake City Highway

3755 Lake City Highway

Warsaw, IN 46580

Warsaw, IN 46580

 

g.         Respondent waives issuance of a Notice of Violation and the settlement period of sixty (60) days as provided for by IC 13-30-3-3 as related to the violations described in Paragraph Nos. 5(a)(iii) and 5(g)(2) herein.

 

5.                  Inspections were conducted at one or both of the Sites on October, 11, 2000, January 9, 2001, October 31, 2001, October 16 2002, and on April 30, 2003, by an IDEM representative.  The following violations were in existence or observed at the time of these inspections:

 

a.                  Pursuant to 326 IAC 6-4-2(4), no source shall allow fugitive dust to visibly cross the boundary or property line of a source.

 

i.          On October 11, 2000, January 9, 2001, and October 24, 2001, Respondent allowed fugitive emissions from the cupola charge door, the “B” scrubber, and the east side of the roof, to cross property lines at ground level at its Kendallville Site, violations of 326 IAC 6-4-2(4).

 

ii.                   On October 31, 2001, Respondent allowed fugitive emissions from the scrap yard and smoke from the Herman II cooling stacks to cross property lines at ground level at its Warsaw Site, violations of 326 IAC 6-4-2(4).

 

iii.         On October 16, 2002, Respondent allowed fugitive emissions from the scrap yard and smoke from the Herman II cooling stacks to cross property lines at ground level at its Warsaw Site, violations of 326 IAC 6-4-2(4).

 

b.                  Pursuant to the Part 70 Significant Source Modification No. 085-14027-00003, issued to the Warsaw Site on February 22, 2002, as amended by administrative amendment No. 085-15816-00003 on August 23, 2002, and as amended by administrative amendment No. 085-18455-00003 on February 16, 2004 (“Permit”) condition No. C.10, within ninety (90) days of the Permit issuance, Respondent shall prepare a Compliance Response Plan (“CRP”) for each compliance monitoring condition of the Permit.

 

Based on an inspection at the Warsaw Site conducted on April 30, 2003, Respondent failed to prepare a CRP within ninety (90) days of the Permit issuance, a violation of the Permit condition No. C.10.

 

c.                  Pursuant to the Permit condition Nos. C.2, D.1.4, D.3.3, D.5.3, and D.6.3, within ninety (90) days of the Permit issuance, Respondent shall prepare and maintain Preventive Maintenance Plans (“PMP”) for each facility.

 

Respondent failed to prepare and maintain PMP for each facility within ninety (90) days of the Permit issuance, violations of the Permit condition Nos. C.2, D.1.4, D.3.3, D.5.3, and D.6.3.

 

d.                  Pursuant to the Permit condition Nos. D.3.9, D.3.12, D.5.8, D.5.11, and D.6.7, Respondent shall maintain records of quarterly baghouse and wet scrubber inspections at each applicable facility.

 

Respondent failed to maintain records of quarterly baghouse and wet scrubber inspections at each applicable facility for the time period between October, 2002, and April, 2003, violations of the Permit condition Nos. D.3.9, D.3.12, D.5.8, D.5.11, and D.6.7.

 

e.                  Pursuant to the Permit condition No. D.5.7, Respondent shall conduct pressure drop readings and take corrective actions, while operating scrubber D (#1) at less than minimum flow rate.

 

Respondent failed to conduct pressure drop readings and take corrective actions, while operating the above-mentioned scrubber at less than minimum flow rate, a violation of Permit condition No. D.5.7.

 

f.                    Pursuant to Permit condition Nos. D.5.10 and D.6.6, Respondent shall take corrective actions if baghouses F, G, R, Y, H, K and X (now designated Nos. 1, 2, 9, 13, 3, 6, and 12 respectively) operate outside of the pressure drop range as set out in Permit condition Nos. D.5.10 and D.6.6.

 

Respondent failed to take corrective actions, while operating the above mentioned baghouses outside of the pressure drop range, violations of condition Nos. D.5.10 and D.6.6.

 

g.         Pursuant to 326 IAC 5-1-2(1)(A), visible emissions from a source or facility located in an attainment area for particulate matter shall not exceed an average of forty percent (40%) opacity in any six-minute period.

 

i.                     During an inspection at the Kendallville Site on July 1, 2004, opacity of visible emissions from this source’s return sand handling operations building was in excess of 40% six-minute average in violation of 326 IAC 5-1-2(1)(A); and

 

ii.                   During a surveillance inspection at the Warsaw Site on March 17, 2006, opacity of visible emissions from this source’s Herman II line stacks was in excess of 40% six-minute average in violation of 326 IAC 5-1-2(1)(A).

 

h.         Pursuant to condition No. D.5.7 of significant source modification No. SSM 085-14027-0003, issued to the Warsaw Site on February 22, 2002, as amended by administrative amendment number 085-15816-00003 on August 23, 2002, and as amended by administrative amendment No. 085-18455-00003 on February 16, 2004 Respondent shall: 1) record the total static pressure drop and flow rate for scrubbers B, C, D, and E (now designated as #3, #2, #1, and #4 wet collectors) at least once per shift, when associated processes are in operation and when venting to the atmosphere; and 2) take response steps in accordance with the Compliance Response Plan (“CRP”), when the static pressure drop is below the minimum of 8 inches of water and/or the flow rate is below the minimum of 200 gallons per minute; or the values established during the latest stack test, respectively.

 

According to findings of an inspection at the Warsaw Site on July 18, 2005, Respondent failed to:

 

i.          record the static pressure drop for scrubbers B, C, D, and E in its daily log recordings for shift C on July 11, 12, 13, 14, and 17, 2005, while operating the associated processes and venting into the atmosphere at the Warsaw Site; and

 

ii.          take response steps in accordance with the CRP during shift C on July 11, 12, 13, 14, and 17; and during shift A on July 8 and 11, 2005, when the scrubbers’ flow rate dropped below 200 gallons per minute in violation of permit condition No. D.5.7.

 

i.          Pursuant to condition No. D.1.2(e) of significant source modification No. SSM 085-18009-0003, issued on December 9, 2003, particulate matter (“PM“) emissions from the Herman III shakeout and sand handling process shall not exceed 0.034 pounds per ton (lb/ton) of metal and sand throughput.

 

Average PM emissions measured during a stack test, conducted at the Warsaw Site, at the Herman III shakeout and sand handling process, on May 17, 2005, were 0.066 lb/ton, in violation of permit condition D.1.2(e).

 

j.          Stack tests were conducted at the Warsaw Site on January 18 and 20, and on July 12 and 13, 2005.

 

i.          Pursuant to permit No. 085-14027-00003 issued on February 22, 2002, condition No. D.5.1(a), PM emissions from the Herman III shakeout and sand handling process shall not exceed 0.034 lb/ton of metal and sand throughput.

 

Average PM emissions measured during the January 2005 stack test were 0.048 lb/ton of metal and sand throughput in violation of permit condition No. D.5.1(a).

 

ii.          Pursuant to permit condition No. D.5.1(b), PM10 emissions from the Herman III shakeout and sand handling process shall not exceed 0.058 lb/ton of metal and sand throughput.

 

Average PM10 emissions measured during the January 2005 stack test were 0.083 lb/ton of metal and sand throughput in violation of permit condition No. D.5.1(b).

 

iii.         Pursuant to permit condition No. D.5.1(c), VOC emissions from the Herman III shakeout and sand handling process shall not exceed 0.115 lb/ton of metal and sand throughput.

 

Average VOC emissions measured during the July 2005 stack test were 0.272 lb/ton of metal and sand throughput in violation of permit condition No. D.5.1(c).

 

iv.         Pursuant to permit condition No. D.4.1(e), VOC emissions from the Herman III pouring process shall not exceed 0.163 lb/ton of metal throughput.

 

Average VOC emissions measured during the July 2005 stack test were 1.09 lb/ton of metal throughput in violation of permit condition No. D.4.1(e).

 

v.         Pursuant to permit condition No. D.4.1(i), VOC emissions from the Herman III cooling process shall not exceed 0.687 lb/ton of metal throughput.

 

            Average VOC emissions measured during the July 2005 stack test were 1.346 lb/ton of metal throughput in violation of permit condition No. D.4.1(i).

 

6.                  In January 2000, Respondent purchased one replacement sweeper; repaired a water truck; purchased a truck; and installed new application equipment on it at the Warsaw Site.

 

7.                  Respondent did not begin operation of the new hot box core making line, which was the subject of the Permit, and which would trigger the requirements described above in Paragraph Nos. 5(b) through 5(f), until October 1, 2002.

 

8.                  In May 2002, Respondent engineered and installed two (2) new afterburners and constructed a refractory brick mixing ring in the cupola at the Kendallville Site to create better combustion of the off-gases and to prevent emissions at the charge door.

 

9.                  Respondent installed a clean water advanced oxidation system at the Herman II sand handling system at the Warsaw Site, and began operating and optimizing this system in December 13, 2002.

 

10.              Respondent constructed an extension for the Scrubber B exhaust stack at the Kendallville Site.

 

11.              The February 16, 2004, amendments to the permit, referred to in Paragraph No. 5(h) above, changed pressure drop ranges of several of the baghouses and the water flow rate of some of the scrubbers in order to more accurately reflect proper operating ranges.

 

12.              Respondent began repairing its sand handling facility building to prevent VE to being emitted on July 2, 2005, as soon as it discovered opacity violations referred to in Paragraph No. 5(j).

 

13.              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 perform sweeping of the Warsaw Site scrap yard at least once an operating shift, whenever truck traffic is present or the cupola is operating, unless there is at least one tenth of an inch (1/10”) of rain within the past twenty-four (24) hours or one inch (1”) of snow on the ground; or unless the ambient air temperature is below 32° Fahrenheit.  Additionally, Respondent shall perform watering of the Warsaw Site scrap yard at least once a day, whenever truck traffic is present or the cupola is operating, from April through October, unless there is at least one tenth of an inch (1/10”) of rain within the past twenty-four (24) hours or one inch (1”) of snow on the ground; or unless the ambient air temperature is below 32° Fahrenheit.

 

3.                  Respondent shall conduct visual observations of the Warsaw Site scrap yard at least once per shift, every day during the daylight hours, whenever truck traffic is present or the cupola is operating.  The visual observations shall be made at a time not less than two (2) hours after either sweeping or watering has been performed.  Should any visible airborne dust be observed within ten (10) feet of the fence line, generated by either wind, vehicular traffic, or any other activities, Respondent shall perform additional sweeping or watering immediately after the observation.  Compliance with this Paragraph and Paragraph No. 2 above does not relieve Respondent from its duty to comply with the requirements of 326 IAC 6-4, nor reduce Respondent’s liabilities for any noncompliance with those requirements.

 

4.                  To document compliance with Order Paragraph Nos. 2 and 3 above, Respondent shall keep written records of the visual observations and results, and of the scrap yard sweeping or watering events, and of the weather conditions prohibiting sweeping of the paved areas and/or watering of the yard.  The records shall include the date and time of each observation or event.  Respondent shall keep the records at the Warsaw Site for at least five years and make them available to IDEM’s representative upon request.  Respondent shall notify IDEM’s current Office of Air Quality inspector by phone and in writing of every event of deviation from the requirements specified in Order Paragraph Nos. 2 and 3 above, and of each observation of visible dust leaving the property at or near ground level, by phone at (317) 233-8437 and in writing via fax at (317) 233-6865 within twenty-four (24) hours of the event or observation or by the next business day.

 

5.                  Respondent shall eliminate visible emissions excursions from the B scrubber, lasting sixty (60) or more seconds and traveling beyond the Kendallville Site’s property boundaries at ground level in violation of 326 IAC 6-4.  If such an excursion occurs, Respondent shall immediately take all corrective actions necessary to return to compliance, including but not limited to, production decrease or cessation.

 

6.                  For the Scrubbers B and C, Respondent shall acquire suitable equipment to monitor scrubber water clarity, density, and conductivity within 120 days after the Effective Date of this Agreed Order.  Within 180 days of the Effective Date of this Agreed Order, Respondent shall conduct a compliance stack test at the B and C Scrubbers pursuant to 326 IAC 3-6.  During the stack test, Respondent shall conduct VE observations and at least three (3) runs of simultaneous measurements of the scrubbers’ water clarity, density, and conductivity.  If Respondent passes the compliance stack tests, and no VE cross the property line, the average values of these runs shall become monitoring criteria for scrubber water clarity, density, and conductivity for each scrubber respectively.  Respondent may establish new monitoring criteria for scrubber water parameters during any successful compliance stack test conducted pursuant to 326 IAC 3-6 in the absence of VE.  Respondent shall take the response actions necessary should scrubber water clarity, density, or conductivity exceed by ten percent (10%) or more the monitoring criteria in order to return those values to the proper level.

Alternatively to monitoring and keeping record of the B and C scrubbers water clarity, density, and conductivity, Respondent shall implement a periodic maintenance program, including, but not limited to replacement of at least twenty-five percent (25%) of circulated water with addition of the corresponding amount of make-up water to the scrubbers’ clarifier during the first week of every operating quarter; weekly addition of the flocculants in quantities recommended by the scrubbers’ manufacturers and other relevant activities.

 

7.                  To document compliance with Order Paragraph No. 5, Respondent shall once each shift, when a mold line is in operation, conduct emissions observations of the Kendallville Site B scrubber, and monitor and document its pressure drop, flow rate, and either monitor water clarity, density, and conductivity; or alternatively, of the scrubbers periodic maintenance activities as described in Paragraph No. 6.  Respondent shall record the observations and results of the parametric monitoring along with any corrective actions taken.  The records shall include the date and time of the observation and the fact that parametric monitoring was performed.  Respondent shall keep the records at the Kendallville Site for at least five (5) years and make them available to IDEM’s representative upon request.

 

8.                  Respondent shall notify IDEM’s current Office of Air Quality inspector by phone and in writing of every event of deviation from the requirements specified in Order Paragraph Nos. 5 and 7, and of each observation of visible dust lasting longer than sixty (60) seconds and leaving the property boundary at or near ground level from Scrubber B, by phone at (317) 233-8437 and in writing via fax at (317) 233-6865 within twenty-four hours of the event or observation or by the next business day.

 

9.                  Should the records and deviation reports, pursuant to Order Paragraph Nos. 6 and 7, or IDEM’s inspections document visible emissions lasting longer than sixty (60) seconds from the B scrubber traveling beyond the Kendallville Site’s property boundaries at or near ground level three (3) times in the initial twelve (12) months  after the Effective Date of this Agreed Order, Respondent shall install and operate a secondary control device such as a cartridge filter, baghouse, or additional scrubber to significantly reduce particulate matter emissions and opacity from the B scrubber within one hundred eighty(180) days of IDEM’s notice that the secondary control device is required.  Alternatively, Respondent shall replace the B scrubber with a new control device that achieves greater control of particulate matter and opacity emissions and/or augment the existing control system with advanced oxidation system on sand handling and shakeout process of mold lines.  Respondent shall apply for a permit modification to replace/augment the B scrubber within sixty (60) days of IDEM’s notice that secondary control is required, and shall install the new control device within one hundred eighty (180) days of receiving the permit modification.  To the extent that the terms of such permit conflict with the terms of this Agreed Order pertaining to monitoring, records keeping, or maintenance requirements of Scrubber B, the terms of the permit shall control.  Nothing in this Order precludes IDEM from conducting separate enforcement actions following a discovery of additional 326 IAC 6-4 violations at the B scrubber.

 

10.              Respondent shall once each shift, when a mold line is in operation, conduct emissions observations of the Kendallville Site C scrubber, and monitor and document its pressure drop, flow rate, and either monitor and record the scrubber water clarity, density, and conductivity; or alternatively monitor and record the scrubber’s periodic maintenance activities as described in Order Paragraph No. 6.  Respondent shall take appropriate response actions should scrubber water clarity, density, and conductivity exceed the monitoring criteria.  Respondent shall record the observations and results of the parametric monitoring along with any corrective actions taken.  The records shall include the date and time the observation and parametric monitoring was performed.  Respondent shall keep the records at the Kendallville Site for at least five (5) years and make them available to IDEM’s representative upon request.

 

11.              Respondent shall eliminate visible emissions from the cupola charge opening at the Kendallville Site, lasting sixty (60) or more seconds, traveling beyond the Kendallville Site’s property boundaries at ground level in violation of 326 IAC 6-4.  If such visible emissions occur, Respondent shall immediately take all necessary corrective actions, including, but not limited to, production decrease or cessation.

 

12.              To document compliance with Order Paragraph No. 11, Respondent shall once each shift that the cupola is in operation, conduct visible emissions observations from the Kendallville Site cupola charge opening, and monitor and document its work practices, such as upper stack temperature, and maintenance practices, such as afterburner and brick ring preventive maintenance.  Respondent shall record the daily observations along with the work practice information, and corrective action taken.  Respondent shall keep the records at the Kendallville Site for at least five (5) years and make them available to IDEM’s representative upon request.  Respondent shall notify IDEM’s current Office of Air Quality compliance inspector by phone at (317) 233-8437 and in writing via fax at (317) 233-6865 about every observation of visible dust crossing the property boundary at or near ground level from the cupola charge door within twenty-four (24) hours of the observation or by the next business day.

 

13.              Respondent shall eliminate visible emissions from the Herman II sand handling system, including the mold cooling, pouring, and shakeout operations, lasting sixty (60) or more seconds, traveling beyond the Warsaw Site’s property boundaries at or near ground level pursuant to 326 IAC 6-4.  If such visible emissions occur, Respondent shall immediately take all necessary corrective actions, including, but not limited to, production decrease or cessation.

 

14.              To document compliance with Order Paragraph No. 13, Respondent shall, once each shift during daylight hours, conduct emissions observations at the Herman II cooling stacks; and once each shift, when the Herman II line is in operation, monitor operating parameters of the Sonoperoxone system, including, but not limited to, hydrogen peroxide usage in gallons per hour of muller operation, the ozone generator plasma voltage, and the ultrasonic power in watts.  Respondent shall record the observations and results, and the parametric monitoring along with any corrective actions taken.  The records shall include the date and time of the observation and the fact that parametric monitoring was performed.  Respondent shall keep the records at the Warsaw Site for at least five (5) years and make them available to IDEM’s representative upon request.  Respondent shall notify IDEM’s current Office of Air Quality compliance inspector by phone at (317) 233-8437 and in writing via fax at (317) 233-6865 about every observation of visible emissions from the Herman II sand handling system, including the mold cooling, pouring, and shakeout operations, crossing the property boundary at ground level within either twenty-four (24) hours after the observation or by the next business day.

 

15.              Respondent shall comply with all applicable requirements of 326 IAC 2 when implementing any modification or change required in this Agreed Order.

 

16.              Respondent shall comply with all monitoring, recordkeeping, and reporting requirements set forth in the Part 70 Significant Source Modification number 085-14027-00003, issued on February 22, 2002, as amended by administrative amendment number 085-15816-00003 on August 23, 2002, and as amended by permit amendment number 085-18455-00003 on February 16, 2004, until such time, when a combined Part 70 operating permit issued by OAQ becomes valid and effective.  Upon the Effective Date of this Part 70 permit, Respondent shall comply with the combined Part 70 operating permit.

 

17.              Within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall submit copies of the CRP and PMP for each operation pursuant to the Part 70 Significant Source Modification number 085-14027-00003, to the OAQ compliance inspector and to the Office of Enforcement.

 

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

 

Michael Stonik

Office of Enforcement

Indiana Department of Environmental Management

100 North Senate Avenue, Mail Code: 60-02

Indianapolis, Indiana 46204-2251

 

19.              Respondent is assessed a civil penalty of Eighty-Four Thousand One Hundred Seventy-Five Dollars ($84,175.00).  Within thirty (30) days after the Effective Date of the Agreed Order, Respondent shall pay a portion of this penalty in the amount of Eight Thousand Four Hundred Eighteen Dollars ($8,418.00).  Said penalty amount shall be due and payable to the Environmental Management Special Fund.

 

a.                  In lieu of payment of the remaining civil penalty, Respondent shall perform and complete a Supplemental Environmental Project (“SEP”).  Respondent estimates that this SEP will cost Eight Hundred Forty Six Thousand Dollars ($846,000.00).  Within thirty (30) days after 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 One Hundred Fifty-One Thousand Five Hundred Fourteen Dollars ($151,514.00), Respondent shall pay fifty percent (50%) of the difference between the minimum acceptable expense as determined by offset ratio 2:1 ($151,514.00) and the actual cost of the SEP.

 

b.                  Respondent shall use the remaining balance, if any, remaining after the SEP completion (as specified in Order Paragraph No. 19(a)), to offset the appropriate portion of the civil penalties in related Case Nos. 1998-3320-A and 2001-3321-A.  The balance shall be calculated as a difference between the final documented actual SEP cost and the minimum acceptable expense of One Hundred Fifty-One Thousand Five Hundred Fourteen Dollars ($151,514.00).  The offset ratio shall be 2:1.

 

20.              As a SEP, Respondent shall purchase, install, operate, and optimize a blackwater advanced oxidation system (Sonoperoxone® or equivalent system) on its Herman II mold line at its Warsaw Site as described in Appendix A attached to this Agreed Order.  Respondent shall have the project completed not later than one (1) year after the Effective Date of this Agreed Order.  Implementation of this SEP will result in an estimated seventeen percent (17%) reduction in the current amount of VOC emissions from the Herman II mold line.

 

21.              In the event that the Respondent does not complete the SEP within one (1) year after the Effective Date of this Agreed order, the full amount of the civil penalty as stated in Order Paragraph No. 19 above, plus interest established by IC 24-4.6-1-101 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.

 

22.              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

Five Hundred Dollars ($500)

Paragraph No. 2 of this

per each complete or incomplete

Agreed Order

week of violation.

 

 

Failure to comply with Order

Five Hundred Dollars ($500)

Paragraph No. 3 of this

per each complete or incomplete

Agreed Order

week of violation

 

 

Failure to comply with Order

Five Hundred Dollars ($500)

Paragraph No. 4 of this

per each complete or incomplete

Agreed Order

week of violation

 

 

Failure to comply with Order

Five Hundred Dollars ($500)

Paragraph No. 7 of this

per each complete or incomplete

Agreed Order

week of violation

 

 

Failure to comply with Order

Five Hundred Dollars ($500)

Paragraph No. 12 of this

per each complete or incomplete

Agreed Order

week of violation

 

 

Failure to comply with Order

Five Hundred Dollars ($500)

Paragraph No. 14 of this

per each complete or incomplete

Agreed Order

week of violation

 

 

Failure to comply with Order

Five Hundred Dollars ($500)

Paragraph No. 17 of this

per each complete or incomplete

Agreed Order

week of violation

 

23.              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.

 

24.              Civil and stipulated 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’s Office

100 North Senate Avenue, Mail Code: 50-10C

Indianapolis, Indiana 46204-2251

 

25.              In the event that the civil penalty required by Order Paragraph No. 20 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.

 

26.              “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 the case manager 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.

 

27.              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.

 

28.              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.

 

29.              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.

 

30.              Respondent shall submit to OAQ Part 70 Significant Source Modification (“SSM”) applications to incorporate certain Order Paragraphs of this Agreed Order as follows below, into Part 70 operating permits issued, respectively, to:

 

a.                  Warsaw Site:

i.                  Order Paragraphs Nos. 2 through 4 setting requirements for the scrap yard; and

 

ii.        Order Paragraphs Nos. 13 and 14 setting requirements for Herman II line.

 

b.                  Kendallville Site:

 

i.                  Order Paragraphs Nos. 5 through 8 and 10 setting requirements for Scrubbers B and C; and

 

ii.          Order Paragraphs Nos. 11 and 12 setting requirements for cupola charge door.

 

31.              Except for Order Paragraph No. 19(b), this Agreed Order shall remain in effect for a period of five (5) years after the Effective Date of the Agreed Order, or until Respondent has complied with all terms and conditions of this Agreed Order, whichever is longer.  Order Paragraph No. 19(b) of this Agreed Order shall remain in effect until the expiration date of the final settlement reached in C ase Nos. 1998-3320-A and 2001-3321-A.

 

 

 

 

 

 

 

 

REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY

 

 

 

 

 

 

 

 

 

 

 

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

Dalton Corporation

 

 

 

By:

 

 

By:

 

 

David P. McIver

 

Printed:

 

 

Chief, Air Section

 

Title:

 

 

Office of Enforcement

 

 

 

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

 

, 200

 

.

 

 

For The Commissioner:

 

 

 

Signed on May 25, 2006

 

Matthew T. Klein

 

Assistant Commissioner for

 

Compliance and Enforcement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix A