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.

IN DUCTILE, LLC
a/k/a INDIANA DUCTILE, LLC

 

Respondent.

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Case No. 2002-11517-A
Case No. 2004-15007-A
Case No. 2004-15008-A
Case No. 2004-15056-A
Case No. 2005-15009-A
Case No. 2005-15010-A
Case No. 2006-15369-A
Case No. 2006-15448-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.

 

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 IN Ductile, LLC, a/k/a Indiana Ductile, LLC (“Respondent”), which owns and operates a stationary ductile iron foundry with United States Environmental Protection Agency (EPA) I.D. No. 057-00002, Title V Permit No. 057-13975-00002, issued on August 28, 2003,  (“Permit”), located at 1600 South 8th Street in Noblesville, Hamilton 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 (“NOV”) via Certified Mail:

 

a.         on September 27, 2002, in Case No. 2002-11517-A, to:

 

Mr. Richard Reece, President

Indiana Ductile, LLC

Indiana Ductile, LLC

1020 Market Tower

1600 South 8th Street

10 West Market Street

Noblesville, IN   46060

Indianapolis, IN   46204;

 

b.         on February 8, 2006, in Case Nos. 2004-15007-A, 2004-15008-A, 2004-15056-A, 2005-15009-A, and 2005-15010-A, to:

 

Mr. Jack Kruse, General Manager

Mr. Roger L. Mears, Registered Agent

IN Ductile, LLC.

for IN Ductile, LLC.

1600 South 8th Street

5240 Elmwood Avenue

Noblesville, IN 46060

Indianapolis, IN 46203;

 

c.         on February 27, 2006, in Case No. 2006-15369-A, to:

 

Mr. Jack Kruse, General Manager

Mr. Roger L. Mears, Registered Agent

IN Ductile, LLC.

for IN Ductile, LLC.

1600 South 8th Street

5240 Elmwood Avenue

Noblesville, IN 46060

Indianapolis, IN 46203; and

 

d.         on April 21, 2006, in Case No. 2006-15448-A, to:

 

Mr. Jack Kruse, General Manager

Mr. Roger L. Mears, Registered Agent

IN Ductile, LLC.

for IN Ductile, LLC.

1600 South 8th Street

5240 Elmwood Avenue

Noblesville, IN 46060

Indianapolis, IN 46203.

 

5.                  During an investigation conducted by a representative of IDEM, the following violations were found:

 

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.

 

During the inspection on May 28, 2003, this source allowed fugitive emissions from the ductile inoculation process, exhausted through Stack 001, to cross property lines at ground level in violation of 326 IAC 6-4-2(4); and

 

During an inspection on January 25, 2006, this source allowed fugitive emissions originating from the melting facility’s roof fans, to cross property lines at ground level in violation of 326 IAC 6-4-2(4).

 

b.         Pursuant to Condition No. C.10(a)(5) of Permit No. 057-10672-00002, issued on October 10, 1999, (“Previous Permit”), Respondent shall prepare a Compliance Response Plan (“CRP”) by February of 2000.

 

Respondent failed to prepare a CRP within the required period, in violation of the Previous Permit.

 

c.         Pursuant to Condition Nos. B.11(a); D.1.3; D.2.3; and D.3.3 of the Permit, Respondent shall prepare a Preventive Maintenance Plan (“PMP”) within thirty (30) days of the Permit issuance, which was by October of 2003, when the respective D-Sections of the Permit require it.

 

Respondent failed to prepare a PMP within the required period in violation of the Permit conditions.

 

d.         Pursuant to Condition Nos. D.1.7 and D.1.16(b) of the Previous Permit; and pursuant to Condition Nos. D.1.5(a); D.1.6(c); D.2.6(a); D.2.10(a); D.3.5(a); and D.3.9(a) of the Permit, Respondent shall perform visible emissions (“VE”) notations throughout the facility and to maintain records of VE notations to document compliance on the basis required by the above-noted permits.

Respondent failed to perform the required VE notations and to maintain records of VE notations to document compliance, in violation of conditions of the above-referenced permits.

 

e.         Pursuant to Condition Nos. D.1.8 and D.1.16(c) of the Previous Permit, Respondent shall perform inspections of all tundish ladle lids controlling the magnesium treatment/ inoculation operation each calendar quarter, and to maintain records of the quarterly inspections results to document compliance.

 

Respondent failed to perform the inspections and to maintain the records, in violation of conditions of the Previous Permit.

 

f.          Pursuant to Condition Nos. D.1.10; D.1.11; and D.1.16(c) of the Previous Permit; and pursuant to Condition Nos. D.2.7; D.2.8; and D.2.10(b), and (c) of the Permit, Respondent shall record the total static pressure drop across the wet collectors used throughout the facility; to perform the inspections of the wet collectors each calendar quarter; and to maintain records of the inspections results to document compliance.

 

Respondent failed to record the total static pressure drop, to perform the inspections, and to maintain the records, in violation of conditions of the above-referenced permits.

 

g.         Pursuant to Condition Nos. D.1.13; D.1.14; and D.1.16(c) of the Previous Permit; and pursuant to Condition Nos. D.3.6; D.3.7; and D.3.9(a) and (c) of the Permit, Respondent shall record the total static pressure drop across the baghouse controlling multiple operations at this facility; to perform inspections of the baghouse each calendar quarter; and to maintain records of the quarterly inspections results to document compliance.

 

Respondent failed to record the total static pressure drop, to perform the inspections, and to maintain the records, in violation of conditions of the above-referenced permits.

 

h.         Pursuant to Condition Nos. D.1.6(a)(2) and (b) of  the Permit, Respondent shall:

 

(i)         keep records of total: (A) propane usage; and (B) binder; volatile organic compounds (“VOC”); and catalyst content and usage to document compliance with the limitations to avoid the 326 IAC 8-1-6 BACT applicability; and

 

(ii)        submit quarterly VOC compliance reports, not later than thirty (30) days after the end of the reportable quarter.

 

Respondent failed to keep the required records for the years of 2004 and 2005 and to submit the quarterly: (A) propane usage; and (B) binder, VOC, and catalyst content and usage reports, in violation of the Permit.

 

i.          Pursuant to Condition Nos. D.1.4; D.2.4(a); and D.2.4(b) of  the Permit, Respondent shall perform PM/PM10 testing within 180 days after permit issuance.

 

Respondent failed to perform the required PM/PM10 testing within 180 days after the Permit issuance, in violation of the Permit.

 

6.                  Records reviews were performed for this Site by a representative of IDEM on July 1, 2004, and on July 1, 2005.  The records reviews revealed the following violations:

 

a.         Pursuant to Condition B.10(a) of the Permit, Respondent must submit an Annual Compliance Certification (“ACC”) report which addresses the status of the source’s compliance with the terms and conditions of the Part 70 permit as required by 326 IAC 2-7-6 by July 1 of each year to cover the time period from January 1 to December 31 of the previous year.

 

Respondent failed to submit the ACC for the year of 2003 by July 1, 2004 and the ACC for the year of 2004 by July 1, 2005, in violation of the Permit.

 

7.                  A Last Chance Letter (“LCL”) in the Case No. 2002-11517-A that offered entering into an Agreed Order was mailed on January 16, 2003, via certified mail to:

 

Mr. Richard Reece, President

Indiana Ductile, LLC

1600 South 8th Street

Noblesville, IN   46060

 

8.                  On April 14, 2006, Respondent submitted to IDEM:

 

a.         the 2003 and 2004 ACCs; and

 

b.         the quarterly reports of total propane usage; and binder, VOC, and catalyst content and usage to document compliance with the Title V Permit conditions D.1.1 and D.1.6, setting the limitations to avoid the 326 IAC 8-1-6 BACT applicability, for the 3rd and 4th quarters of 2003, 1st through 4th quarters of 2004, and 1st though 4th quarters of 2005.

 

9.                  On March 16, 2007, Respondent submitted an application for Significant Permit Revision of the Permit to make changes necessary to accurately reflect the equipment and current operations at the Site.

 

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 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.                  Compliance with the terms of this Agreed Order shall resolve all the violations cited in the NOVs for Case Nos. 2002-11517-A, 2004-15007-A, 2004-15008-A, 2004-15056-A, 2005-15009-A, 2005-15010-A, 2006-15369-A, and 2006-15448-A.

 

3.                  Respondent shall comply with the following until such time as a revised permit is issued by IDEM based on the application identified in Findings of Fact Paragraph 9 of this Agreed Order:

 

a.         Respondent shall comply with 326 IAC 6-4-2(4);

 

b.         Respondent shall perform visible emission notations of the exhaust from the wet collector WC-W once per shift during normal daylight operations.  A trained employee shall record whether emissions are normal or abnormal in accordance with Condition D.2.6 (b), (c) and (d) of the Permit.  Respondent shall take reasonable response steps when an abnormal emission is observed to restore operation of the emissions unit(s) (including the control device and associated capture system) to its normal or usual manner of operation as expeditiously as practicable in accordance with good air pollution control practices for minimizing emissions.  Respondent shall maintain records of visible emission notations and any response steps taken; such records shall be maintained in accordance with Condition C.19 of the Permit.

 

c.         Respondent shall record the total static pressure drop across the wet collector WC-W at least once per shift when the casting process is in operation.  When for any one reading the pressure drop across the wet collector WC-W is outside the normal range of 3.0 to 5.0 inches of water, Respondent shall take reasonable response steps to restore operation of the emissions unit(s) (including the control device and associated capture system) to its normal or usual manner of operation as expeditiously as practicable in accordance with good air pollution control practices for minimizing emissions.  Respondent shall maintain records of pressure drop readings and any response steps taken; such records shall be maintained in accordance with Condition C.19 of the Permit.

 

4.                  Within ninety (90) days after the Effective Date of this Agreed Order, Respondent shall submit a stack test protocol to determine particulate matter (“PM”) and particulate matter ten (10) microns or less in aerodynamic diameter (PM10) emissions at the wet collector WC-W exhaust, Stack 003, associated with the following emission units:

 

a.         two (2) casting machines identified as EU-8 and EU-9;

b.         three (3) shakeout units identified as EU-11, EU-12 and EU-13;

c.         sand muller identified as EU-17;

d.         overhead shaker screen identified as EU-18;

e.         two (2) return sand storage silos identified as EU-19 and EU-20;

f.          bond storage silo identified as EU-23;

g.         sand storage bin identified as EU-26; and

h.         Mag belt/Bin Top belt identified as EU-27.

 

This proposal shall be submitted to IDEM’s Compliance Data Section at the address below with a copy to the Office of Enforcement:

 

Indiana Department of Environmental Management

Compliance Data Section, Office of Air Quality

100 North Senate Avenue

Indianapolis, Indiana 46204-2251

 

5.                  Respondent shall perform stack testing on the wet collector WC-W exhaust, Stack 003, and associated emission units listed in Order Paragraph 4 of this Agreed Order to determine compliance with 326 IAC 6-3-2 and 326 IAC 2-2 no later than one hundred eighty (180) days after the Effective Date of this Agreed Order.  Respondent shall perform said stack testing in compliance with 326 IAC 3-6-3.

 

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

 

Janusz Johnson, Enforcement Case Manager

Office of Enforcement – Mail Code 60-02

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

7.                  Respondent is assessed a civil penalty of Forty-Eight Thousand Two Hundred Seventy-Five Dollars ($48,275.00).  Said penalty amount shall be due and payable to the Environmental Management Special Fund in twenty-four (24) monthly payments.  The first twenty-three (23) payments shall be Two Thousand Twelve dollars ($2012) each and the final payment shall be One Thousand Nine Hundred Ninety-Nine dollars ($1999).  The first payment shall be due within thirty (30) days of the Effective Date.  In the event that the civil penalty is not paid within twenty-four (24) months 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.

 

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

 

Paragraph

Penalty

Order Paragraph No. 4 (a-h)

Five Hundred Dollars ($500.00) per week or part thereof

Order Paragraph No. 5

Five Hundred Dollars ($500.00) per week or part thereof

 

9.                  Stipulated penalties shall be due and payable within thirty (30) days after Respondent receives written notice that Complainant has determined a stipulated penalty is due.  Assessment and payment of stipulated penalties shall not preclude Complainant from seeking any additional relief against Respondent for violation of this Agreed Order.  In lieu of any of the stipulated penalties set out above, 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.

 

10.             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 – Mail Code 50-10C

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

11.             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.

 

12.             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.

 

13.             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.

 

14.             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 permit or any applicable Federal or State law or regulation.

 

15.             Complainant does not, by its approval of this Agreed Order, warrant or aver in any manner that Respondent’s compliance with any aspect of this Agreed Order will result in compliance with the provisions of any permit, order, or any applicable Federal or State law or regulation.  Additionally, 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.

 

16.             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 the NOV.

 

17.             Nothing in this Agreed Order shall prevent IDEM 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.

 

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

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

IN Ductile, LLC

 

 

 

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 May 14, 2007

 

Robert B. Keene

 

Assistant Commissioner

 

Office of Legal Counsel and Enforcement