STATE OF INDIANA

COUNTY OF MARION

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BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

CORN ISLAND SHIPYARD, INC.,

Respondent.

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Case No. 2007-16819-H




 

 

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 (“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 Corn Island Shipyard, Inc. (“Respondent”), which owns and/or operates a company with U.S. EPA I.D. number INR 000008524, located at 8735 Hwy. 66 East, in Grandview, Spencer County, Indiana (the “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 via Certified Mail to:

 

Don Foertsch, President and Registered Agent

Corn Island Shipyard, Inc.

8735 Hwy. 66 East

P.O. Box 125

Lamar, Indiana  47550

 

5.         Respondent last notified the U.S. EPA of Large Quantity Generator activities on February 6, 2007.

 

6.         Respondent manufactures special service vessels, barges, casino platforms, dry docks, dump scows, and specialized marine products for both ocean service and inland waterway service.

 

7.         329 IAC 3.1 incorporates certain federal hazardous waste management requirements found in 40 CFR Parts 260 through 270 and Part 273, including those identified below.

 

8.         During an investigation, including an inspection on March 21, 2007, conducted by a representative of IDEM, the following violations were found:

 

a.         Pursuant to 40 CFR 262.34(a)(2), a generator may accumulate hazardous waste on-site for 90 days or less without a permit, provided that the date when the accumulation begins is clearly marked and visible for inspection on each container.

 

As noted during the inspection, Respondent accumulated hazardous waste on-site, without a permit, and did not mark a hazardous waste container with an accumulation start date.

 

b.         Pursuant to 40 CFR 262.34(a)(3), a generator may accumulate hazardous waste on-site for 90 days or less without a permit, provided that the containers are labeled or marked clearly with the words "Hazardous Waste."

 

As noted during the inspection, Respondent accumulated hazardous waste on-site, without a permit, and did not label or clearly mark a hazardous waste container with the words "Hazardous Waste."

 

c.         Pursuant to 40 CFR 262.34(a)(1)(i) referencing 40 CFR 265.173(a), a container holding hazardous waste must always be closed during storage, unless necessary to add or remove waste.

 

As noted during the inspection, Respondent did not store a container of hazardous waste closed.

 

d.         Pursuant to 40 CFR 262.34(a)(4) referencing 40 CFR 265.52, a facility’s contingency plan must include certain information.

 

As noted during the inspection, Respondent's contingency plan did not include all of the required information.  Randy Schaefer was not identified as an alternate hazardous waste emergency coordinator in the hazardous waste contingency plan.

 

e.         Pursuant to 40 CFR 262.34(a)(4) referencing 40 CFR 265.16(d)(1-4), certain hazardous waste training related documents and records must be maintained on-site.

 

As noted during the inspection, Respondent did not maintain all of the required hazardous waste training related documents and records on-site.  Respondent had not maintained an annual refresher training record for Tom Hauser, who is involved in hazardous waste management activities and is the hazardous waste emergency coordinator.

 

f.          Pursuant to IC 13-30-2-1(4), no person shall deposit or cause or allow the deposit of any contaminants or solid waste upon the land, except through the use of sanitary landfills, incineration, composting, garbage grinding, or another method acceptable to the solid waste management board.

 

As noted during the inspection, Respondent caused and/or allowed the deposit of contaminants and/or solid wastes upon the land in a method unacceptable to the solid waste management board at two (2) areas adjacent to the Ohio River west of the main manufacturing building.  A large pile of spent burning table slag generated from molten metal and mixed with sand from the burning table was observed on the ground at the “River Basin Area” and a large accumulation of spent sandblasting grit was observed on the ground at the “Sandblasting Area.”

 

g.         Pursuant to IC 13-30-2-1(5), no person shall dump or cause or allow the open dumping of garbage or any other solid waste in violation of 329 IAC 10-4-2 and 329 IAC 10-4-3.


As noted during the inspection, Respondent dumped and/or caused or allowed the open dumping of solid wastes in violation of 329 IAC 10-4-2 and 329 IAC 10-4-3.

 

h.         Pursuant to 329 IAC 10-4-2, no person shall cause or allow the storage, containment, processing, or disposal of solid waste in a manner which creates a threat to human health or the environment, including the creating of a fire hazard, vector attraction, air or water pollution, or other contamination.

 

As noted during the inspection, Respondent caused and/or allowed spent burning table slag and spent sandblasting grit to be disposed at the Site in a manner which creates a threat to human health or the environment.

 

i.          Pursuant to 329 IAC 10-4-3, open dumping and open dumps, as those terms are defined in IC 13-11-2-146 and IC 13-11-2-147, are prohibited.

 

As noted during the inspection, Respondent caused and/or allowed spent burning table slag and spent sandblasting grit to be open dumped at the Site.

 

j.          Pursuant to 327 IAC 2-6.1-7, any person who operates, controls, or maintains any mode of transportation or facility from which a spill occurs shall, upon discovery of a reportable spill to the soil or surface waters of the state, do the following:

 

A.        contain the spill, if possible, to prevent additional spilled material from entering the waters of the state.

B.        undertake or cause others to undertake activities needed to accomplish a spill response.

C.        as soon as possible, but within two hours of discovery, communicate a spill report to the Department of Environmental Management, Office of Environmental Response at 1-888-233-7745.

D.        submit to the Department of Environmental Management a written copy of the spill report, if requested in writing by the department.

E.        except from modes of transportation other than pipelines, exercise due diligence and document attempts to notify the following:

i.          for spills to surface water that cause damage, the nearest affected downstream water user located within ten miles of the spill and in the state of Indiana; and

ii.         for spills to soil outside the facility boundary, the affected property owner or owners, operator or operators, or occupant or occupants.

 

As noted during the inspection, Respondent’s failure to contain and/or report the spills of spent burning table slag and spent sandblasting grit to IDEM in a timely manner was in violation of 327 IAC 2-6.1-7.

 

9.         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.         Upon the Effective Date of this Agreed Order, Respondent shall comply with 40 CFR 262.34(a)(2).  Specifically, Respondent shall ensure that the date when the accumulation begins is clearly marked and visible for inspection on each container holding hazardous waste.

 

3.         Upon the Effective Date of this Agreed Order, Respondent shall comply with 40 CFR 262.34(a)(3).  Specifically, Respondent shall ensure that each container holding hazardous waste is labeled or marked clearly with the words "Hazardous Waste."

 

4.         Upon the Effective Date of this Agreed Order, Respondent shall comply with 40 CFR 265.173(a).  Specifically, Respondent shall ensure that containers holding hazardous waste are kept closed during storage, unless necessary to add or remove waste.

 

5.         Within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall comply with 40 CFR 265.52.  Specifically, Respondent shall submit an updated contingency plan to IDEM, including Randy Schaefer identified as an alternate hazardous waste emergency coordinator.

 

6.         Within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall comply with 40 CFR 265.16(d)(1-4).  Specifically, Respondent shall submit updated annual refresher training records for Tom Hauser.

 

7.         Within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall submit to IDEM a site assessment plan.  The purpose of the site assessment plan shall be to conduct sampling and analysis in order to assess potential soil and ground water contamination from the areas of concern which include those areas described in Findings of Fact Nos. 8.f. through 8.j. above and, if necessary, the nature and extent of contamination.  The site assessment plan shall be based upon the principles outlined within IDEM’s Risk Integrated System of Closure (RISC) Technical Resource Guidance Document (“TRGD”), dated February 15, 2001, which can be accessed at: http://www.IN.gov/idem/land/risc.  In addition, the site assessment plan shall:

 

a.         Describe and evaluate all areas of potential contamination in and around each area of concern.

 

b.         Specify the method of determining the number and location of samples to be taken to yield a representative assessment of each area of concern.  This method shall be:

 

1.         random sampling, pursuant to Section 3.4 of Chapter 3 of the TRGD; or

 

2.         directed sampling, pursuant to Section 3.4 of Chapter 3 of the TRGD; and

 

3.         developed to provide locations and methods of any ground water samples pursuant to Section 3.4 of Chapter 3 of the TRGD.

 

c.         Specify how the soil samples will be obtained and handled in order to minimize loss of volatile constituents.  Respondent may composite samples of non-volatiles (i.e., metals and semi-volatiles), but shall not composite samples of volatiles, pursuant to Section 3.4 of Chapter 3 of the TRGD.

 

d.         Specify how the ground water samples will be obtained and describe the sampling procedures.

 

e.         Clearly define all sampling and analytical protocols designed to identify hazardous waste or its constituents, pursuant to 40 CFR Part 261, including 40 CFR Part 261 Appendices I, II, III, and VIII.  The site assessment plan shall include the method of sample collection, pursuant to “Test Methods for Evaluating Solid Waste, Physical/Chemical Methods,” EPA Publication SW-846.  This includes, but is not limited to, sample collection containers, preservatives, and holding times.  Specify the analytical methods to be used and the method’s Estimated Quantitation Limits (EQLs).

 

f.          Specify that chain-of-custody of the samples shall be maintained and Quality Assurance and Quality Control (“QA/QC”) procedures shall be followed, pursuant to Appendix 2 of the TRGD.

 

g.         Include within the site assessment plan a supplemental contingent plan for determining the nature and extent of:

 

1.         soil contamination, as specified in Chapter 4 of the TRGD, in the event that sampling and analysis indicates soil contamination to exist above default residential levels as specified in Table A, Appendix I, of the TRGD; and

 

2.         ground water contamination in the event that sampling and analysis indicates hazardous waste or its constituents are detected in the ground water as specified in Chapter 4 of the TRGD.

 

h.         Include within the site assessment plan time frames for its implementation.

 

i.          Be approved by IDEM prior to its implementation.

 

8.         Within fifteen (15) days of receiving notice from IDEM of approval of the site assessment plan, Respondent shall implement it as approved and in accordance with the time frames contained therein.

 

9.         Within fifteen (15) days of obtaining the analytical results, Respondent shall submit said results, including chain-of-custody information, and QA/QC records, pursuant to Appendix 2 of the TRGD, to IDEM.

 

10.       If soil or ground water contamination is identified, Respondent shall submit within sixty (60) days subsequent to the completion of the analyses, a remediation workplan to IDEM for the purpose of remediating all soil and/or ground water contamination.  The remediation workplan shall:

 

a.         In accordance with Chapter 6 of the TRGD, remediate each contaminated area to closure.  Closure levels shall be one of the following:

 

1.         default residential levels, pursuant to Table A, Appendix I, in the TRGD; or

 

2.         commercial/industrial default values (if appropriate to the facility), pursuant to Table A, Appendix I, in the TRGD.  Ground water shall meet residential default values at the property boundary or control; or

 

3.         closure levels for soil can also be established using the non-default procedures presented in Chapter 7 of the RISC Technical Guide.  The alternate cleanup level proposal must document that the constituents left in soil will not adversely impact any other environmental medium (ground water, surface water, or atmosphere) and that direct contact through dermal exposure, inhalation, or ingestion will not result in threats to human health or the environment; or

 

4.         background levels for metals, pursuant to Section 1.6 of Chapter 1 of the TRGD, and/or the analytical method’s estimated quantitation limits (“EQLs”) for organics.

 

b.         Include a soil and/or a ground water sampling and analysis plan to be performed after the cleanup has been performed which verifies that all contamination has been removed.

 

c.         Include within the remediation work plan time frames for its implementation.

 

11.       Within fifteen (15) days of approval by IDEM of the remediation work plan, Respondent shall implement the plan as approved and in accordance with the time frames contained therein.

 

12.       Within thirty (30) days of completion of the remedial action conducted pursuant to the remediation workplan, Respondent shall submit to IDEM certification by an independent registered professional engineer that the remedial action has been completed as outlined in the approved remediation workplan.

 

13.       In the event IDEM determines that any plan submitted by Respondent is deficient or otherwise unacceptable, Respondent shall revise and resubmit the plan to IDEM in accordance with IDEM's notice.  After three (3) submissions of such plan by Respondent, IDEM may modify and approve any such plan and Respondent must implement the plan as modified by IDEM.  The approved plan shall be incorporated into this Agreed Order and shall be deemed an enforceable part thereof.

 

14.       Upon the Effective Date of this Agreed Order, Respondent shall comply with 327 IAC 2-6.1-7 upon discovery of a reportable spill to the soil or surface waters of the state.

 

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

 

Kris Mangold, Enforcement Case Manager

Office of Enforcement – Mail Code 60-02

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

16.       Respondent is assessed a civil penalty of Nine Thousand Four Hundred Dollars ($9,400).  Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date.  In the event that the civil penalty is not paid within thirty (30) days 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.

 

17.       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:

 

Failure to comply with Order paragraph no. 5

$250 per week

 

 

Failure to comply with Order paragraph no. 6

$250 per week

 

 

Failure to comply with Order paragraph no. 7

$1,000 per week

 

 

Failure to comply with Order paragraph no. 8

$500 per week

 

 

Failure to comply with Order paragraph no. 9

$500 per week

 

 

Failure to comply with Order paragraph no. 10

$500 per week

 

 

Failure to comply with Order paragraph no. 11

$500 per week

 

 

Failure to comply with Order paragraph no. 12

$500 per week

 

 

Failure to comply with Order paragraph no. 13

$500 per week

 

 

 

18.       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.

 

19.       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

 

20.       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.

 

21.       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.

 

22.       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.

 

23.       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 permits or any applicable Federal or State law or regulation.

 

24.       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.

 

25.       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.

 

26.       Nothing in this Agreed Order shall prevent IDEM or anyone acting on its behalf 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.

 

27.       This Agreed Order shall remain in effect until IDEM issues a Return to Compliance letter to Respondent.

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

 

 

 

 

By:

 

 

By:

 

 

Nancy L. Johnston, Section Chief

 

Printed:

 

 

Office of Enforcement

 

Title:

 

 

 

 

 

 

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 October 29, 2007

 

Robert B. Keene

 

Assistant Commissioner

 

Office of Legal Counsel and Enforcement