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.

Koch originals, inc.,

Respondent.

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Case No. 2007-17225-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 Koch Originals, Inc. (“Respondent”), which owns and operates the company with United States Environmental Protection Agency (EPA) ID No. IND000807008, located at 1401 N. Park Street, in Evansville, Vanderburgh 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 via Certified Mail to:

 

Albert W. Koch, President

Louis J. Koch III, Registered Agent

Koch Originals, Inc.

Koch Originals, Inc.

PO Box 3436

1401 N. Park Street

Evansville, Indiana 47733

Evansville, Indiana 47710

 

5.                  Respondent notified EPA of Large Quantity Generator activities on January 12, 2005.

 

6.                  Respondent is a manufacturer of wedding and party equipment.  Respondent conducts nickel, brass and trivalent chrome plating at the Site.

 

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

 

8.                  During an investigation, including an inspection on June 27, 2007, conducted by a representative of IDEM, the following violations were found:

 

a.         Pursuant to 40 CFR 262.11, a person who generates a solid waste must determine if that waste is hazardous.  Respondent did not make hazardous waste determinations on several 55-gallon containers stored outside near the wastewater treatment area which contained solid wastes generated by Respondent.

Respondent determined after the inspection that the 55-gallon containers stored outside near the wastewater treatment area contained non-hazardous Floc Polymer.

 

b.         Pursuant to 40 CFR 262.34(a)(1)(i) referencing 40 CFR 265.174, a generator must conduct weekly inspections of container storage areas.  Respondent did not conduct weekly inspections of the container storage area.

Respondent instituted a documented weekly inspection of the container storage areas on September 27, 2007.

 

c.                  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 containers are labeled or marked clearly with the words “Hazardous Waste.”  Respondent accumulated hazardous waste on-site, without a permit, and did not label or clearly mark one (1) tote of wastewater treatment sludge in the container storage area with the words “Hazardous Waste.”

Respondent labeled the one (1) tote of wastewater treatment sludge in the container storage area with the words “Hazardous Waste” during the inspection.

 

d.                  Pursuant to 40 CFR 262.34(a)(4) referencing 40 CFR 265.16, training records must include the job description for each position at the facility related to hazardous waste management, and annual training records.  Respondent's training records did not include the job descriptions of personnel handing hazardous waste and did not include a record of required annual training.

Respondent provided updated training records for each position at the facility related to hazardous waste management which included a job description and updated training records to IDEM on December 3, 2007.

 

f.                    Pursuant to IC 13-30-2-1(1), no person shall discharge, emit, cause, allow, or threaten to discharge, emit, cause, or allow any contaminant or waste, including any noxious odor, either alone or in combination with contaminants from other sources, into the environment in violation of 329 IAC 10-4-2 and 329 IAC 10-4-3.  Respondent allowed wastewater treatment sludge to be discharged to the ground around the two (2) 8,000 gallon tanks.

 

g.         Pursuant to IC 13-30-2-1(3), no person shall deposit any contaminants upon the land in a place or manner that creates or would create a pollution hazard that violates or would violate 329 IAC 10-4-2.  Respondent deposited wastewater treatment sludge on the ground around the two (2) 8,000 gallon tanks.

 

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.  Respondent caused and/or allowed wastewater treatment sludge to be disposed at the Site in a manner which creates a threat to human health or the environment.

 

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”) three (3) business days after the date this Agreed Order is signed by the Commissioner or the Commissioner’s delegate.  This Agreed Order shall have no force or effect until the Effective Date.

 

2.                  Respondent shall comply with statutes and rules listed in the findings here and above at issue.

 

3.         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 area of concern which includes the area described in Finding of Fact No. 8(f), (g) and (h) 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.

 

4.         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.

 

5.         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.

 

6.         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 workplan time frames for its implementation.

 

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

 

8          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.

 

9.         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.

 

10.       Respondent shall comply with 40 CFR 262.34(a)(1)(i) referencing 40 CFR 265.174.  Specifically, Respondent shall conduct weekly inspections of the container storage area.

 

11.             Respondent shall comply with 40 CFR 262.34(a)(3).  Specifically, Respondent shall label or mark containers of hazardous waste with the words “Hazardous Waste”.

 

12.       Respondent shall comply with IC 13-30-2-1(1).  Specifically, Respondent shall cease allowing wastewater treatment sludge to be discharged to the ground.

 

13.       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

 

14.       Respondent is assessed a civil penalty of Ten Thousand Dollars ($10,000). This penalty reflects a significant reduction from the original proposed civil penalty based upon evidence submitted to IDEM by Respondent which adequately demonstrated Respondent’s inability to pay the original proposed civil penalty. The civil penalty shall be paid in the following manner: Respondent shall make twenty-three (23) civil penalty payments of Four Hundred Sixteen Dollars ($416) and one (1) civil penalty payment of Four Hundred Thirty-Two Dollars ($432).  A payment is due every thirty (30) days with the first payment due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date.  Interest shall accrue on unpaid amounts 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.

 

15.       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:

 

Paragraph

Penalty

Order # 3

$100 per week late

Order # 4

$500 per week late

Order # 5

$100 per week late

Order # 6

$100 per week late

Order # 7

$500 per week late

Order # 8

$100 per week late

 

16.       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.

 

17.       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

 

18.       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.

 

19.       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.

 

20.       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.

 

21.       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.

 

22.       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.

 

23.       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.

 

24.       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.

 

25.       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:

 

 

Nancy 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

 

, 2008.

 

 

For the Commissioner:

 

 

 

Signed on October 24, 2008

 

Robert B. Keene

 

Assistant Commissioner

 

Office of Legal Counsel and Enforcement