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.

NEWCO METALS PROCESSING, INC.,

Respondent.

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Case No. 2007-17028-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. 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 Newco Metals Processing, Inc (“Respondent”), which owns and operates a secondary aluminum processing facility with Plant ID No. 093-00032, located at 4635 Peerless Road, in Bedford, Lawrence 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”) on September 13, 2007 via Certified Mail to :

 

Dan Chenoweth, President

Elwin Kipp Barber, Registered Agent

Newco Metals Processing,Inc.

Newco Metals Processing, Inc.

4635 Peerless Road

7268 South SR 13

Bedford, Indiana  47421

Pendleton, Indiana  46064

 

5.                  Respondent conducted a stack test of Rotary Furnace A for hydrogen chloride (HCl) emissions on April 17, 2007.

 

6.                  Pursuant to 326 IAC 20-70-1 the provisions of 40 CFR 63, Subpart RRR, National Emission Standards for Hazardous Air Pollutants for Secondary Aluminum Production 65 FR 15710(March 23, 2000), were adopted by reference by the air pollution control board. Pursuant to 40 CFR 63.1505 and Condition D.1.12 of Third Significant Permit Modification No. 093-21627-05064 the owner and operator of a group 1 furnace must limit HCl emissions to 0.40 lb HCl per ton of feed/charge.

 

7.                  During the stack test, HCl emissions from Rotary Furnace A exceeded the limit and were at 0.77 lb HCl per ton of feed/charge in violation of 40 CFR 63.1505 and Condition D.1.12 of Third Significant Permit Modification No. 093-21627-05064.

 

8.                  Respondent conducted a retest of Rotary Furnace A for HCL emissions on October 25, 2007.  A lime injection system had been installed to further control HCl emissions at this unit.

 

9.                  During the stack test, HCl emissions from Rotary Furnace A were measured at 0.2 lb HCl per ton of feed/charge in compliance with the emission limit of 0.40 lb HCl per ton of feed/charge.

 

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.                  Respondent shall comply with the provisions of 40 CFR 63, Subpart RRR, National Emission Standards for Hazardous Air Pollutants for Secondary Aluminum Production, 40CFR 63.1505 and Condition D.1.6 of Part 70 Operating Permit No. T 093-18286-00032.

 

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

 

Jay Rodia, Enforcement Case Manager

Office of Enforcement – Mail Code 60-02

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

4.         Respondent is assessed a civil penalty of Eleven Thousand Two Hundred Forty Dollars ($11,240.00). Within thirty (30) days of the Effective Date of the Agreed Order, Respondent shall pay a portion of this penalty in the amount of Two Thousand Two Hundred Fifty Dollars ($2,250.00). Said penalty amount shall be due and payable to the Environmental Management Special Fund. In lieu of payment of the remaining civil penalty, Respondent shall perform and complete a Supplemental Environmental Project (“SEP”).  Respondent estimates that this SEP will cost in excess of Two Hundred Thousand Dollars.  Within 90 days of completing this SEP, Respondent shall submit written notice and documentation to IDEM which substantiates all actions taken and costs incurred with respect to the SEP.  In the event that the cost of the SEP is less than $22,500.00, Respondent shall pay 50% of the difference between the proposed cost of the SEP, $22,500.00 and the actual cost of the SEP.

As a Supplemental Environmental Project, Respondent shall prepare and implement a system which will reduce annually the approximately 500 tons of salt cake special waste from disposal at a regulated landfill. The process will separate spent flux and aluminum dross from the salt cake and use the flux and aluminum to reduce waste. Respondent shall purchase an eddy current system with conveyors. Modifications to some buildings will be made to accommodate the process. Respondent shall implement a test phase for this project by no later than October 31, 2008. The testing phase will conclude on August 31, 2009. The project would be finalized no later than December 31, 2009.  Implementation of this SEP will result in the reduction of material that otherwise would be sent to landfill. This waste reduction will amount to 10% from prior operation volumes. Further the reuse of flux in the furnace may save 200,000 lbs. of waste from landfill disposal. All of these estimates are approximate estimates only and cannot be confirmed as actual numbers at this date.

 

In the event that the Respondent does not complete ( completion includes construction, daily operation and documentation of  a minimum 10% reduction of salt cake waste disposal volumes from prior operations) the SEP by December 31, 2009, the full amount of the civil penalty as stated in paragraph #4 above, plus interest established by IC 24-4.6-1-101 on the remaining amount, less the portion of the civil penalty Respondent has already paid, will be due within fifteen (15) days from Respondent's receipt of IDEM’s notice to pay.  Interest, at the rate established by IC 24-4.6-1-101, shall be calculated on the amount due from the date which is thirty (30) days after the Effective Date of this Agreed Order until the full civil penalty is paid.

 

5.                  Civil 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

 

6.                  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.

 

7.                  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.

 

8.                  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.

 

9.                  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.

 

10.             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.

 

11.             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.

 

12.             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.

 

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

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

 

 

 

 

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

 

, 2008.

 

 

For the Commissioner:

 

 

 

Signed on October 17, 2008

 

Robert B. Keene

 

Assistant Commissioner

 

Office of Legal Counsel and Enforcement