STATE OF INDIANA ) BEFORE THE INDIANA DEPARTMENT

) SS: OF ENVIRONMENTAL MANAGEMENT

COUNTY OF MARION )

COMMISSIONER OF THE DEPARTMENT )

OF ENVIRONMENTAL MANAGEMENT, )

)

Complainant, )

)

v. ) CAUSE NOS. A-2439, A-3122,

) A-3147, & A-3186

A.E. STALEY )

MANUFACTURING COMPANY )

Respondent. )

 

AGREED ORDER

The Commissioner and the Respondent, being desirous of settling and compromising this action without hearing or admission or adjudication of any issue of fact or law, hereby consent to the entry of the following Findings of Fact and order.

I. FINDINGS OF FACT

1. Complainant is the (hereinafter referred to as "Complainant") of the Indiana Department of Environmental Management (hereinafter referred to as "IDEM"), a department of the State of Indiana created by IC 13-13-1-1 (previously IC 13-7-2-11).

2. Complainant has jurisdiction over the Respondent and the subject matter of this action.

3. A.E. Stanley manufacturing Company, (hereinafter referred to as "Respondent"), owns and operates two corn-processing plants in Lafayette, Indiana. The South Plant is located at 3300 U.S. 52 South and the Sagamore Plant is located at 2245 North Sagamore Parkway.

 

 

 

    1. On August 21, 1995, Complainant issued a Notice of Violation under Cause Nos.

      2. A-3122 and A-3147 to Respondent. Cause Nos. A-3122 and A-3147 allege violations of 326 IAC 5-1 and 326 IAC 6-2 by Respondent at its South Plant. On September 5, 1995, Complainant issued a Notice of Violation under Cause A-2439 to Respondent. Cause No. 1-2439 alleges violations by Respondent at its Sagamore Plant of 40 C.F.R. Part 60, Subpart Db, as incorporated by 326 IAC 12-1-1. In meetings to discuss the above-referenced notices of violation, IDEM advised Respondent that IDEM also intended to issue Respondent a Notice of Violation under Cause No. A-3186 for alleged violations of 326 IAC 3-1.1-3 by Respondent at its Sagamore Plant from January 1, 1992 through December 31, 1994 for improperly calibrating the continuous emission monitor there. Respondent subsequently waived issuance and receipt of the Notice of Violation under Cause A-3186. This Agreed Order resolves all violations alleged in Cause Nos. A-3122, A-3147, A-2439, and A-3186 or that might have been alleged based on the Findings of Fact and time periods stated within said cause numbers

    2. Rules 326 IAC 3-1-1 and 326 IAC 3-1.1-3 require Respondent to operate a continuous opacity monitor on its coal fired boiler at its South Plant and required Respondent to submit quarterly reports of such monitoring to IDEM’s Office of Air Management. During the quarters one through four (1 – 4) of 1994 and 1995 and the first quarter of 1996, Respondent’s continuous opacity monitor was operating but was improperly calibrated, thus violating 326 IAC 3-1.1-2.
    3. In April 1996, Respondent correctly set the Optical Path Length Ratio of the continuous opacity monitor for the coal-fired boiler at the South Plant in accordance with 326 IAC 3-1.1-2.
    4. On February 21, 1995, Respondent performed a compliance source test for the South Plant’s coal fired boiler. The test results showed a particulate matter (PM) emission rate of 0.42 lbs./MMBTU; however, the allowable PM emissions are 0.40 lbs./MMBTU. The difference between test results and allowable emissions constitute an alleged violation.
    5. In February 1996, Respondent replaced and improved stoker and grate drives on the South Plant’s coal fired boiler, thus enhancing the boiler’s operation and efficiency.
    6. In February 1996, Respondent performed a second compliance test for particulate matter on the South Plant’s coal fired boiler. The test results were 0.21 lbs./MMBTU, thus testing in compliance with Operation Permit OP 79-07-89-0342.

      7.  

       

       

       

    7. On December 16, 1987, Respondent commenced operation of Boiler 31B-1 at the Sagamore Plant. Rules 326 IAC 3-1.1-1 and 326 IAC 3-1.1-3 require the Boiler 31B-1 be operated with a continuous opacity monitor and submit quarterly reports to IDEM’s Office of Air management. In February 1996, IDEM’s Office of Air Management conducted a records review of Boiler 31B-1. Upon review, it was discovered that Boiler 31B-1’s continuous opacity monitor was improperly calibrated between January 1, 1992 and December 31, 1994, thus violating 326 IAC 3-1.1-2.
    8. In January 1995, the Sagamore Plant’s continuous opacity monitor was adjusted to reflect the correct Optical Path length Ratio in accordance with 326 IAC 3-1.1-2.
    9. Pursuant to IC 13-7-11-2(b) (IC 13-30-3-3 beginning July 1, 1996) IDEM issued a Notice of Violation dated September 5, 1995, for Cause No. A2439 via Certified Mail to:

      10. Bill Coats C.T. Corporation Systems

      A.E. Staley Manufacturing Co. Registered Agent for

      2245 N. Sagamore Parkway A.E. Staley Manufacturing Co.

      Lafayette, IN 47901 1 North Capitol

      Indianapolis, Indiana 46204

    10. Pursuant to IC 13-7-11-2(b) (IC 13-30-3-3 beginning July 1, 1996) IDEM issued a Notice of Violation dated August 21, 1995, for Cause Nos. A-3122 and A-3147 via Certified Mail To:

      11. Rand Roslak C.T. Corporation Systems

      Environmental Manager Registered Agent for

      A.E. Staley Manufacturing Company A.E. Staley manufacturing Co.

      3300 U.S. 52 South 1 North Capitol

      Lafayette, IN 47903-7977 Indianapolis, IN 47903-7977

    11. In recognition of the settlement reached herein, Respondent waives any right to administrative and judicial review of this Agreed Order and agrees not to contest the jurisdiction of Complainant to enter into this Order.

 

 

 

II. Order

WHEREFORE, based upon the Findings of Fact and upon the consent of the parties, it is hereby ORDERED that:

    1. By July 1, 1997, Respondent shall continuously monitor Sagamore Plant Boiler 31B-1 for sulfur dioxide (SO2) emissions. The continuous emissions monitor CEM) shall be certified and operated in accordance with 326 IAC 3-1.1 for SO2. CEM results shall be used to determine compliance, which shall be on the basis of three (3) hour block periods.

      2. Sulfur dioxide monitoring results shall be included with the continuous opacity monitoring reports submitted quarterly to the Complainant.

      Respondent shall submit an application by march 1, 1997 to amend the current operating permit by deleting condition #11 and adding a condition to reflect the above requirements.

    2. If violations are noted (after exemptions) with the opacity standard in the Respondent’s quarterly reports for the South Plant’s coal fired boiler or the Sagamore Plant’s Boiler 31B-1, IDEM may require Respondent to submit a compliance plan detailing steps to be taken to alleviate the violations including the possibility of further installation of air pollution control equipment. The compliance plan shall be submitted to IDEM within thirty (30) days after receipt of IDEM’s written request. This requirement shall not preclude IDEM from taking enforcement action for these violations, which may include assessment of civil penalties and injunctive relieve.

      3. Respondent shall pay a daily-stipulated penalty of Five Hundred Dollars ($500) if Respondent fails to submit the compliance plan after the required submittal date.

    3. For the years 1997, 1998 and 1999, Respondent shall conduct annual source tests for particulate matter on the South Plant’s coal fired boiler. The source tests shall be conducted in accordance with all applicable requirements of 326 IAC 3-2.1. If the 1997 and 1998 source tests both demonstrate compliance with applicable limitations, Respondent’s 1999 source test requirement may be waived by IDEM.

      4.  

       

       

       

    4. Respondent shall not modify in any way the Optical Path Length Ratio on the continuous opacity monitors located on the Sagamore Plant’s Boiler 31B-1 or the South Plants coal fired boiler without first giving two weeks written notification to IDEM’s Office of Air Management clearly stating the reason for said modification. This paragraph shall not prevent Respondent from resetting the Optical Path Length Ratio following lightning strikes, power outages or other Acts of God, in which case Respondent shall notify IDEM’s Office of Air Management within twenty-four (24) hours of resetting.
    5. The 40 CFR 60, Subpart Db (as incorporated by 326 IAC 12-1-1) violations alleged in the Notice of Violation dated September 5, 1995, are hereby dismissed (Cause No. A-2439).
    6. Unless IDEM otherwise notified Respondent in writing, all submittals required by this Agreed Order with the exception of continuous monitoring reporting required by 326 IAC 3-1.1-3 shall be sent to:

      7. Air Enforcement Section Chief

      Office of Enforcement

      Indiana Department of Environmental Management

      P.O. Box 6015

      Indianapolis, Indiana 46206-6015

    7. Respondent is assessed a Civil Penalty of One Hundred Sixty-One Thousand Five Hundred Dollars ($161,500), unless its payment is modified by a following paragraph.

 

8, By March 15, 1997, Respondent shall complete a Supplemental Environmental Project (SEP) involving the installation and operation of an one hundred foot (100 ft) diameter circular clarifier onto its existing waste water treatment system at the South Plant. The new clarifier will allow the mixed liquor suspended solids to be increased in the aeration tanks, thereby decreasing the organic loading to the existing biofilter.

 

 

 

    1. The initial cost of the above-mentioned Supplemental Environmental Project is One Million Two Hundred Thousand Dollars ($1,200,000). Within thirty (30) days after the effective date of this Order, the Respondent shall pay a portion of the civil penalty stated in paragraph seven (7) above in the amount of Thirty-Two Thousand Three Hundred Dollars ($32,300). Upon completion of the SEP, Respondent shall submit to IDEM documentation verifying date of completion and costs. Timely completion of the SEP shall cancel the remaining civil penalty. In the event the Respondent does not complete the SEP by March 15, 1997, the remaining civil penalty of One Hundred Twenty-Nine Thousand Two Hundred Dollars ($129,200) shall be due and payable on April 1, 1997, to the Environmental Management Special Fund.
    2. "Force Majeure" for purposes of this Agreed Order, is defined as any even arising from causes beyond the control of the Respondent that delays or prevents that 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 efforts 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 financial inability to complete the work required by this Agreed Order or increases in cost to perform the work.

      3. The Respondent shall notify IDEM by calling within three (3) calendar days and by writing no later than seven (7) business days after the discovery 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 their 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 force majeure. The decision of whether an event is a force majeure shall be made by IDEM. Said decision shall be communicated to the Respondent.

      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 attributable to the event constituting the force majeure.

       

       

       

       

    3. Civil and stipulated penalties are payable by check to the Environmental Management Special Fund. Checks shall include the Case Number and shall be mailed to:

      4. Cashier

      IDEM

      100 North Senate Avenue

      Post Office Box 7060

      Indianapolis, Indiana 46206-7060

    4. In the event that the civil penalty required by paragraph seven (7) as modified by paragraph nine (9) is not paid within thirty (30) days of the Effective Date of this Agreed Order or the payment of the stipulated penalties assessed pursuant to paragraph two (2) are not made within thirty (30) days of Respondent’s receipt of IDEM’s demand, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1-101. The interest shall begin to accrue on the date the civil and/or stipulated penalties are due until the full civil and/or stipulated penalties are paid.
    5. This Order shall apply to and be binding upon the Respondent, its officers, directors, legal successors, and assigns. The Respondent’s signatories to this Order certify that they are full authorized to execute 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 Order.
    6. The Respondent shall provide a copy of this Order, if in force, to any subsequent owners or successors before ownership rights are transferred.
    7. Respondent shall comply with all applicable laws and all rules of any board created by Title 13 of the Indiana Code.
    8. This Order shall be valid and enforceable the date this Order is adopted by the Complainant or his delegatee. However, all time periods shall run from the date Respondent receives this Order (the "Effective Date"). This Agreed Order shall remain in effect for three (3) years from the Effective Date of this Order or until Respondent demonstrates eight (8) consecutive quarters from the Effective date of this Order of compliance with the opacity standard for the South Plant’s coal fired boiler, whichever is less.

 

 

 

 

TECHNICAL RECOMMENDATION RESPONDENT

Department of Environmental management A. E. Stanley Manufacturing Company

By: Signed by Daivd McIver By: Signed by J. Patrick Mohan

Section Chief

Air Section Printed: J. Patrick Mohan

Office of Enforcement

Title: Executive Vice President

Date: 1-23-97

Date: 2-20-97

COUNSEL FOR COMPLAINANT COUNSEL FOR RESPONDENT

Department of Environmental Management

By: C. Edward Taylor By: Lewis D. Beckwith

Office of Legal Counsel

Date: 1-23-97 Date: 2-28-97

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMNT

THIS 6 DAY OF MARCH, 1997.

FOR THE COMMISSIONER

 

 

Signed by Patrick Carroll

Patrick Carroll

Director

Office of Enforcement