STATE OF INDIANA ) BEFORE THE INDIANA DEPARTMENT

) SS: OF ENVIRONMENTAL MANAGEMENT

COUNTY OF MARION )

COMMISSIONER OF THE DEPARTMENT )

Complainant, )

v. ) Case No. 2004-13650-W

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 Ind. Code 13-30-3-3, entry into the terms of this Agreed Order does not constitute an admission of fact or 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.

1. Complainant is the Commissioner of the Indiana Department of Environmental Management ("IDEM" or "Complainant"), a department of the State of Indiana created by Ind. Code 13-13-1-1.

2. Respondent is the United States Steel Corporation, dba U.S. Steel - Gary Works ("Respondent"), which operates a facility that manufactures iron and steel products, coke and coal chemicals and is located at One North Broadway, Gary, Indiana. The Respondent is authorized by National Pollutant Discharge Elimination System (NPDES) Permit No. IN 0000281, as modified ("the Permit"), to discharge effluent to the Grand Calumet River, Lake Michigan and Stockton Pond in accordance with effluent limitations, monitoring requirements, and other conditions contained therein.

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

4. Respondent waives issuance of a Notice of Violation pursuant to Ind. Code 13-30-3-3 for the violations alleged herein.

5. Pursuant to 327 IAC 5-2-8(1) and Part II.A.1 of the NPDES Permit, the Respondent is required to comply with all terms and conditions of the NPDES Permit.

6. Pursuant to Part I.A.3(a)(BB)(1)(a) of the Permit, the Respondent was required to submit to IDEM a progress report to the Compliance Evaluation Section, Office of Water Quality no later than April 1, 1999, which included a description of the actions that have been taken and the planned future actions to meet the final limitations for selenium, along with the method(s) selected for meeting the final limitations.

7. Pursuant to Part I.A.3(a)(BB)(1)(b) of the Permit, the Respondent was required to submit to the Compliance Evaluation Section a report upon the progress to achieve compliance with the final effluent limits for selenium once every twelve months beginning April 1, 2000.

8. IDEM records indicate that the Respondent submitted progress reports discussing selenium to the Office of Water Quality on March 31, 1999; March 30, 2000; March 30, 2001; March 28, 2002; and March 28, 2003. The Respondent’s progress reports failed to describe to IDEM’s satisfaction actions that have been taken and the progress made to achieve compliance with the final effluent limitations for selenium in the Permit.

9. The Respondent’s failure to submit progress reports deemed by IDEM to be in accordance with the requirements of the Permit is a violation of 327 IAC 5-2-8(1), Part II.A.1 of the Permit and Part I.A.3(a)(BB)(1)(b) of the Permit.

10. The Respondent has developed its "Sampling and Analysis Plan for a Selenium In-Situ Dissolved Metals Translator" ("Sampling Plan"), which is included in this Agreed Order as "Attachment A". The Sampling Plan sets forth a protocol to obtain site-specific data in order to determine an alternate translator from which IDEM will derive the final effluent limit for selenium that will be incorporated into the Permit upon renewal in accordance with 327 IAC 5-2-11.6(c)(2)(B).

11. IDEM has reviewed and approved the Sampling Plan referenced in Paragraph 10 of these Findings of Fact, including the Respondent’s definition of valid data pairs, set forth on page 5-2, Section 5.1 of the Sampling Plan. In accordance with page 5-2, Section 5.1 of the Sampling Plan, if C_Ti (greater than the RL) is greater than corresponding C_Di (less than the RL), then the RL is substituted for the value for C_Di, and the data pair is considered valid. IDEM approves the Respondent’s determination of pair validity under the circumstances applicable to selenium and the Respondent, for this Sampling Plan, only. Except in fact-specific circumstances, including but not limited to circumstances applicable to selenium and the respondent, for this sampling plan, IDEM does not accept as valid a sampling result in which the C_Ti (greater than RL) is greater than the corresponding (C_Di)(less than RL).

12. Additionally, the Respondent has agreed, for purposes of this Agreed Order, only, to perform sampling and analysis of dissolved selenium in the effluent from Outfall 005, which is set forth in Order Paragraph 3 of this Agreed Order.

13. In recognition of the settlement reached, the Respondent waives any right to administrative and judicial review of this Agreed 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. The Sampling Plan ("Attachment A"), which is referenced in Paragraph 10 of the Findings of Fact above, is hereby incorporated into this Agreed Order and deemed an enforceable part thereof, provided, however, that the Sampling Plan may be modified by mutual written agreement of the parties. Upon the Effective Date of this Agreed Order, the Respondent shall conduct sampling and analysis of selenium in accordance with the Sampling Plan and in conformance with the following:

b. Within 30 days after the Respondent concludes the Grand Calumet River dredging,

the Respondent shall conduct a Method Detection Limit ("MDL") Study in

accordance with procedures set forth in 40 CFR Part 136 Appendix B, to confirm the

MDL for draft USEPA Method 1632, as specified in the Sampling Plan on page 3-1

(0.05 to 0.1 µg/L). The MDL study shall specifically include, but not be limited to:

i. Prep blank standard;and

ii. Standard calibration tests.

3. Respondent shall conduct effluent sampling for selenium at Outfall 005 as follows:

4. Upon receipt of the summary report referenced in Order Paragraph 2.e., IDEM shall review the data to verify that the Respondent followed the protocol set forth in the Sampling Plan. Upon determination that the Respondent followed the protocol set forth in the Sampling Plan, IDEM shall incorporate a final effluent limit for selenium into the renewal permit consistent with the data compiled through the Study.

5. Respondent shall comply with the Interim 2 discharge limitations for selenium, which are set forth in Part I.A.3(a) of the Permit, until such time as Respondent has completed the Sampling Plan and a final effluent limit for selenium consistent with Order Paragraph 4 has been incorporated into the renewal permit and has become effective.

6. Immediately upon the Effective Date of this Agreed Order, Respondent shall withdraw its Petition for Administrative Review pending at the Office of Environmental Adjudication and styled as Cause No. 02-W-J-2942. Respondent shall also immediately move to dismiss with prejudice the related civil litigation pending in Marion Superior Court and styled as United States Steel Corporation v. Commissioner, Indiana Department of Environmental Management, Cause No. 49F12-0303-MI-000743. Respondent’s failure to take the actions referenced in this paragraph within fifteen (15) days of the Effective Date of this Agreed Order shall render this Agreed Order void in its entirety.

7. In the event the following 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:

8. 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 preclude the Complainant from seeking any additional monetary relief against the Respondent for the particular violation of the Agreed Order that gave rise to the stipulated penalty. Assessment and payment of stipulated penalties shall not preclude the Complainant from seeking or obtaining any injunctive relief against the Respondent for violation of this 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, Indiana law, or Respondent’s NPDES Permit, including, but not limited to, civil penalties pursuant to Ind. Code 13-30-4.

9. 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:

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

11. 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.

12. 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.

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, nor shall it in any way relieve Respondent of its obligation to comply with the applicable requirements of federal or state law or regulation.

15. The Complainant does not, by its approval of this Agreed Order, warrant or aver in any manner that the Respondent's compliance with any aspect of this Agreed Order will result in compliance with any applicable requirements of federal or state law or regulation.

16. This Agreed Order shall remain in effect until the revised final effluent limitations for selenium have been incorporated into Respondent’s renewal permit and have become effective consistent with Order Paragraph 4; all other outstanding conditions of the order have been completed; and all payments of stipulated penalties due have been received by IDEM.