STATE OF
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BEFORE THE INDIANA DEPARTMENT
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OF
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COMMISSIONER
OF THE DEPARTMENT |
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ENVIRONMENTAL MANAGEMENT, |
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Complainant, |
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v. |
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Case
No. 2005-14702-A |
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METAL
TECHNOLOGIES AUBURN, LLC |
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Respondent. |
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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. 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 (hereinafter referred to as
"Complainant") of the Indiana Department of Environmental Management,
a department of the State of
2.
Respondent is Metal Technologies Auburn, LLC, ("Respondent" or
"MTA"), which owns and operates a grey iron foundry at 1537 West
Auburn Drive, a location formerly known as 2278 West County Road 48, Auburn, DeKalb County, Indiana (the "Site"). The Site was
obtained by MTA as a part of the Bankruptcy proceedings of the former owner,
Auburn Foundry, Inc. ("Auburn Foundry"), and is commonly referred to
as Auburn Foundry Plant No.2. There is no legal, managerial, or common
ownership relationship between Auburn Foundry and Respondent. Respondent is an
unrelated bona fide third party purchaser of most of the assets of Auburn
Foundry Plant No.2.
3.
The Indiana Department of Environmental Management ("IDEM")
has jurisdiction over the parties and the subject matter of this action.
4.
Respondent waives issuance of a Notice of Violation and to the
settlement period of sixty (60) days as provided for by IC 13-30-3-3.
5.
Prior to commencing operation at the Site, Respondent has asked to have
three (3) air operating permits transferred from Auburn Foundry to MT A. MT A
intends to begin operating at the Site under those air operating permits
described below:
a.
Registered Construction and Operation Status CP 033-8728-0042
b.
Construction Permit 033-5793-00042
c.
Part 70 Minor Source Modification 033-10655-00042
6.
Prior to commencing operation at the Site, Respondent voluntarily
disclosed to IDEM in connection with IDEM's Environmental Audit and Self-Disclosure
Policy that Respondent believes that it, upon acquisition of the Site as a
part of the Bankruptcy proceedings of Auburn Foundry, that initiating
operations would:
a.
Be a major source of Carbon Monoxide (CO) emissions pursuant to state
and federal Prevention of Significant Deterioration (PSD) permitting rules as
set forth at 326 lAC 2-2 et seq. and 40 CFR Part 52.21. As a result of the PSD major source
status, Respondent would also be subject to PSD for Volatile Organic Compounds
(VOCs), Particulate Matter (PM) and PM\o; and
b.
Be subject to the requirements of326 lAC
7.
Prior to commencing operation at the Site, Respondent has also
voluntarily disclosed to IDEM that it believed that the process descriptions as
set forth in the Auburn Foundry Plant No.2 air operating permits were probably
inaccurate. MT A has provided IDEM with a document that it believes more
accurately describes the processes at the Site. It is understood by the parties
that the revised process description provided by MT A does not allow Respondent
to emit greater levels of air contaminants than currently authorized by the
existing air operating permits listed in Paragraph No.5 above.
8.
Since the issuance of the air operating permits listed in Paragraph No.5
above, the requirement of326 lAC
9.
IDEM and Respondent are aware that, because of the information set forth
in Paragraph Nos. 6-8 above, operation of the Site will result in violation of
the current air operating permits listed in Paragraph No.5 above as well as
violation of state and federal rules, notably 326 lAC
2-2 et seq., 326 lAC
8-1-6, 40 CFR 52.21, and 40 CFR 52.770.
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 his delegate, and has been received by Respondent.
This Agreed Order shall have no force or effect until the Effective Date.
2.
Respondent shall operate the Site as indicated by the revised process
description submitted by Respondent to IDEM by letter dated
3.
Except as otherwise permitted by this Agreed Order, Respondent shall not
emit greater levels of air contaminants than currently authorized by the
existing air operating permits listed in Paragraph N{). 5 above.
4.
Within sixty (60) days of the Effective Date, Respondent shall submit to
IDEM a PSD application for CO, VOC, PM and PM\o that addresses all emission
units at the MT A Site. This application must include
all necessary updates to the Part 70 permit application previously submitted by
Auburn Foundry.
5.
Within one hundred and twenty (120) days of the Effective Date,
Respondent shall conduct emission testing using a method approved by IDEM for
CO and VOC emissions from the pouring, cooling, and shakeout processes for
production line Nos. 1 and 2. Respondent is unable to test the processes on
production line Nos. 3 and 4 within this time period because those lines will
likely not yet be in operation. The emissions testing shall be conducted in accordance with 326 lAC 3-6.
6.
Respondent shall submit the results to IDEM of the emissions testing
performed pursuant to Paragraph No.5 within forty-five (45) days after
completion of the testing.
7.
Within ninety (90) days after completion of the emission testing
performed pursuant to Paragraph No.5, Respondent shall submit to IDEM all
necessary updates to its PSD application, including but not limited to,
revisions to the air quality analysis and revisions to the BACT analyses.
8.
Until such time that Respondent has a PSD permit approved by IDEM, and
in effect, for the Site, Respondent shall:
a.
Limit PM emissions from Baghouse BH-3 to 5.7
pounds/hour;
b.
Limit PMIO emissions from Baghouse BH-3 to 3.4
pounds/hour; and
c.
Control, by internally vented dust collectors, all grinding operations
that are not vented to Baghouse BH-3.
9.
Respondent is not required to submit an emission statement on
10.
All submittals required by this Agreed Order, unless notified otherwise
in writing, shall be sent to:
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Office of Air Quality |
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Indiana Department of
Environmental Management |
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11.
In connection with IDEM's Self-Disclosure and Environmental Audit Policy and Respondent's
self-reporting of the alleged violations, no civil penalty shall be assessed
against Respondent.
12.
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:
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Violation |
Penalty |
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Failure to comply with
Order paragraph 4 |
$10,000 per week or part
thereof |
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Failure to comply with
Order paragraph 5 |
$5,000 per day or part
thereof |
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Failure to comply with
Order paragraph 6 |
$1,000 per day or part
thereof |
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Failure to comply with
Order paragraph 7 |
$1,000 per day or part
thereof |
13.
Stipulated penalties shall be due and payable within thirty (30) days
after Respondent receives written notice that the Commissioner has determined a
stipulated penalty is due. Assessment and payment of a civil penalty shall not
preclude Complainant from seeking any additional relief against Respondent for
violation of the Agreed Order. In lieu of any of the stipulated penalties given
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.
14.
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:
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Indiana Department of
Environmental Management |
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Attn: Cashier |
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15.
This Agreed Order shall apply to and be binding upon Respondent, its
successors and assigns. Respondent's signatories to this Agreed Order certify
that they are fully authorized to execute this document and legally bind the
party he/she represents. No change in ownership, corporate, or partnership
status of Respondent shall in any way alter its status or responsibilities
under this Agreed Order.
16.
In the event 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.
17.
Respondent shall provide a copy of this Agreed Order, if in force, to
any subsequent
18.
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.
19.
This Agreed Order shall remain in effect until IDEM either issues the
PSD permit for the Site, or denies the permit for the Site and Respondent has
exhausted all administrative appeal rights.
20.
"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.
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FOR RESPONDENT: |
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Metal Technologies |
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By: |
________________________ |
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Rick L. James, Manager |
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Metal Technologies |
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FOR COMPLAINANT: |
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Department of
Environmental Management |
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By: |
____________________________ |
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Commissioner Thomas W.
Easterly |
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Date: |
Signed |
Exhibit A
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Current Permit Number |
Current Permit Process Description |
Amended Process Description |
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Registration |
One (1) reblast grey iron casting cleaning/finishing operation,
processing a maximum of 2,334 pounds per hour of grey iron castings,
utilizing one (1) steel shot blast machine (ID No. E16), controlled by one
(1) baghouse and exhausting to one (1) stack (ID
No. 16) |
One (1) shotblast identified as EU-6, with a nominal capacity of
1.12 tons of iron castings per hour and a maximum capacity of 5 tons of iron
casting per hour, controlled by baghouse DC-6 and
exhausting through stack 6. |
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CP-033-5793-00042 |
One (1) sand mixing
process, with PM controlled by a baghouse,
designated as system 1. |
One (1) sand handling
system identified as emission unit EU-1 with a nominal capacity of 220 tons
of sand per hour, and a maximum capacity of 250 tons/hour, and one sample
blast machine, all controlled by baghouse DC-1,
exhausting to stack S-1. |
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CP-033-5793-00042 |
One (1) melting process
including the melting of gray iron by three (3) electric induction furnaces,
charge handling, and pouring at maximum rate of 32 tons per hour, with PM
controlled by a baghouse, designated as system 2. |
One (1) furnace charging
system identified as emission unit EU-2b, and one (1) holding furnace and
ladle metallurgical station, with a nominal capacity of 36 tons of metal per
hour and a maximum capacity of 45 tons/hour, all controlled by baghouse DC-2 and exhausting to stack S-2. |
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CP-033-5793-00042 |
One (1) gray iron foundry
with a maximum metal melting rate of 32 (tons) per hour including one (1) 1.0
MMBtu/hr natural gas fired office boiler. |
Four (4) pouring and mold
cooling lines identified as emission unit EU-3, with a combined nominal
capacity of 36 tons of metal per hour and 220 tons of sand molds and cores,
and a maximum capacity of 45 tons of metal per hour and 250 tons of sand mold
and cores. The pouring process for
lines 1 and 2 are exhausted to stack 3a.
The mold cooling process for lines 3 and 4 are exhausted to stack
3c. The colloing
process for lines 3 and 4 are exhausted to stack 3d. |
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CP-033-5793-00042 |
One (1) shakeout process
for two (2) individual molding lines, with PM controlled by a baghouse, designated as system 4, and |
One 91) shakeout unit
identified as emission unit EU-4, which serves production lines 3 and 4, with
a nominal capacity of 18 tons per hour of metal and 110 tons per hour of sand
molds and cores, and a maximum capacity of 22.5 tons per hour of metal and
125 tons/hour of sand molds and cores.
EU 4 is controlled by baghouse DC-4
exhausting to stack S-4. |