STATE OF INDIANA

COUNTY OF MARION

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SS:

BEFORE THE INDIANA DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT
OF ENVIRONMENTAL MANAGEMENT,

Complainant,

v.

DALTON CORPORATION,

Respondent.

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Case No. 2008-17791-A
                 2008-18047-A
                 2008-18048-A
                 2008-18114-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.

 

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 Dalton Corporation (“Respondent”), which owns and operates iron foundries with United States Environmental Protection Agency (EPA) ID No. 085-00003, Title V Permit No. 6708, located at 1900 East Jefferson Street, in Warsaw, Kosciusko County, Indiana (“Site A”) and United States Environmental Protection Agency (EPA) ID No. 113-00004, Title V Permit No. 6491, located at 200 West Ohio Street, in Kendallville, Noble County, Indiana (“Site B”).

 

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 June 6, 2008 via Certified Mail to:

 

Joseph L. Derita

Corporation Service Company

President of Dalton Corporation, Warsaw Manufacturing Facility

Registered Agent for Dalton Corporation, Warsaw Manufacturing Facility

3755 Lake City Highway

251 E. Ohio Street Suite 500

Warsaw, IN 46582

Indianapolis, IN 46204

 

5.                  During investigations conducted by a representative of IDEM, the following violations were found at Site A:

 

a.                  Pursuant to E.1.3 of Part 70 permit No. 6708 and 40 CFR Part 63, Subpart EEEEE, the Permittee shall comply with the provisions of the National Emission Standards for Hazardous Air Pollutants for Iron and Steel Foundries for the affected facilities.  Specifically Permittee must prepare and operate at all times according to a written operation and maintenance plan for each capture and collection system and control device for emission sources subject to an emission limit.

The Permittee failed to record the daily operational status of the Mold Vent Ignition (Light-Off) sources as required by the Respondent’s Operation and Maintenance Plan on 25 different instances from May 2007 to April 2008, in violation of permit condition E.1.3 of Part 70 permit No. 6708 and 40 CFR Part 63, Subpart EEEEE.

 

b.                  Pursuant to E.1.3 of Part 70 permit No. 6708 and 40 CFR Part 63, Subpart EEEEE, the Permittee shall comply with the provisions of the National Emission Standards for Hazardous Air Pollutants for Iron and Steel Foundries for the affected facilities.  Specifically Permittee must prepare and operate at all times according to a written operation and maintenance plan for each capture and collection system and control device for emission sources subject to an emission limit.

The Permittee failed to record the daily operational status of the fans on the pouring station hoods as required by the Respondent’s Operation and Maintenance Plan on 134 different instances from April 2007 to April 2008, in violation of permit condition E.1.3 of Part 70 permit No. 6708 and 40 CFR Part 63, Subpart EEEEE.

 

c.                  Pursuant to D.3.8 of Part 70 permit No. 6708, The Permittee shall record the pressure drop and flow rate of Wet Collector #3, at least once per day, when the Herman 2 Shakeout process is in operation.

There is no evidence that the Permittee performed required flow rate monitoring of Wet Collector #3 on October 12, 2007, in violation of permit condition D.3.8 of Part 70 permit No. 6708.

 

d.                  Pursuant to D.3.12(c) of Part 70 permit No. 6708, to document compliance with condition D.3.8, Wet Collector Parametric Monitoring, the Permittee shall maintain records of the daily pressure drop and flow rate readings of Wet Collector #2 and Wet Collector #3, and make such records available, upon request, to IDEM.

The Permittee failed to record flow rate readings of Wet Collector #3 on October 12, 2007, in violation of permit condition D.3.12(c) of Part 70 permit No. 6708.

 

e.                  Pursuant to D.9.7 of Part 70 permit No. 6708, the Permittee shall record the pressure drop, flow rate, and pH of the Acid Scrubber AF, at least once per day, when any of the associated core machines is in operation and venting to the atmosphere.

There is no evidence that the Permittee performed required pressure drop, flow rate, and pH monitoring of Acid Scrubber AF on August 7, 2007, August 8, 2007, and September 21, 2007, in violation of permit condition D.9.7 of Part 70 permit No. 6708.

 

f.                    Pursuant to D.9.11(d) of Part 70 permit No. 6708, to document compliance with condition D.9.7, Scrubber Parametric Monitoring, the Permittee shall maintain records of the daily pH, pressure drop and flow rate readings of Acid Scrubber AF, and make such records available upon request to IDEM.

The Permittee failed to record pressure drop, flow rate, and pH monitoring of Acid Scrubber AF on August 7, 2007, August 8, 2007, and September 21, 2007, in violation of permit condition D.9.11(d) of Part 70 permit No. 6708.

 

g.                  Pursuant to D.9.9(a) of Part 70 permit No. 6708, the Permittee shall record the pressure drop across the Baghouse Q, at least once per day, when the following are in operation:

Phenolic Urethane Core Sand Hopper #1,

Phenolic Urethane Sand Heater #1.

There is no evidence that the Permittee performed required pressure drop monitoring across Baghouse Q on August 7, 2007, August 8, 2007, and September 21, 2007, in violation of permit condition D.9.9(a) of Part 70 permit No. 6708.

 

h.                  Pursuant to D.9.9(b) of Part 70 permit No. 6708, the Permittee shall record the pressure drop across the Baghouse U, at least once per day, when the following are in operation:

Phenolic Urethane Core Sand Hopper #3,

Phenolic Urethane Core Sand Hopper #4,

Phenolic Urethane Sand Heater #3, and

Phenolic Urethane Sand Heater #4.

There is no evidence that the Permittee performed required pressure drop monitoring across Baghouse U on August 7, 2007, August 8, 2007, and September 21, 2007, in violation of permit condition D.9.9(b) of Part 70 permit No. 6708.

 

i.                    Pursuant to D.9.11(e) of Part 70 permit No. 6708, to document compliance with condition D.9.9, Baghouse Parametric Monitoring, the Permittee shall maintain records of the daily pressure drop readings of the following baghouses, and make such records available upon request to IDEM:

Baghouse Q,

Baghouse U, and

Baghouse Z.

The Permittee failed to record pressure drop monitoring across Baghouse Q and U on August 7, 2007, August 8, 2007, and September 21, 2007, in violation of permit condition D.9.11(e) of Part 70 permit No. 6708

 

j.                     Pursuant to D.9.6(a) of Part 70 permit No. 6708, the Permittee shall perform visible emission notations on the following units once per day during normal daylight operations when any of the associated core sand hopper and core machines are in operation and exhausting to the atmosphere:

Baghouse Q exhaust stack (Stack Q),

Baghouse U exhaust stack (Stack U), and

Acid Scrubber AF exhaust stack (Stack AF).

There is no evidence that the Permittee performed required visible emission notations on Baghouse Q exhaust stack on 107 different occasions in the first and second quarters of 2008, in violation of permit condition D.9.6(a) of Part 70 permit No. 6708.

There is no evidence that the Permittee performed required visible emission notations on Baghouse U exhaust stack on 107 different occasions in the first and second quarters of 2008, in violation of permit condition D.9.6(a) of Part 70 permit No. 6708.

There is no evidence that the Permittee performed required visible emission notations on Acid Scrubber AF exhaust stack on 107 different occasions in the first and second quarters of 2008, in violation of permit condition D.9.6(a) of Part 70 permit No. 6708.

 

k.                  Pursuant to D.9.11(c) of Part 70 permit No. 6708, to document compliance with condition D.9.6, Visible Emissions Notations, the Permittee shall maintain records of the daily visible emission notations of the Baghouse Q exhaust stack (Stack Q), Baghouse U exhaust stack (Stack U), and Acid Scrubber AF exhaust stack (Stack AF).

The Permittee failed to record visible emission notations on Baghouse Q exhaust stack on 107 different occasions in the first and second quarters of 2008, in violation of permit condition D.9.11(c) of Part 70 permit No. 6708

The Permittee failed to record visible emission notations on Baghouse U exhaust stack on 107 different occasions in the first and second quarters of 2008, in violation of permit condition D.9.11(c) of Part 70 permit No. 6708

The Permittee failed to record visible emission notations on Acid Scrubber AF exhaust stack on 107 different occasions in the first and second quarters of 2008, in violation of permit condition D.9.11(c) of Part 70 permit No. 6708

 

l.                     Pursuant to C.19 of Part 70 permit No. 6708, the Permittee shall submit the Quarterly Deviation and Compliance Monitoring Report with any deviation from permit requirements, the dates of each deviation, the cause of the deviation, and the response steps taken.  This report shall be submitted within thirty (30) days of the end of the reporting period.

The Deviation and Compliance Monitoring Report for the first quarter of 2008 was 77 days late, in violation of permit condition C.19 of Part 70 permit No. 6708.

 

m.                Pursuant to Agreed Order 2001-11054-A, issued on May 25, 2006, the Permittee shall purchase, install, operate, and optimize a blackwater advanced oxidation system on the Herman 2 Mold Line.

The Permittee failed to operate the blackwater advanced oxidation system on March 5, 2008 to March 7, 2008, in violation of F.1.3 of Part 70 permit No. 6708

 

6.                  During investigations conducted by a representative of IDEM, the following violations were found at Site B:

 

a.                  Pursuant to E.1.2 of Part 70 permit No. 6491 and 40 CFR Part 63, Subpart EEEEE, the Permittee shall comply with the provisions of the National Emission Standards for Hazardous Air Pollutants for Iron and Steel Foundries for the affected facilities.  Specifically Permittee must prepare and operate at all times according to a written operation and maintenance plan for each capture and collection system and control device for emission sources subject to an emission limit.

The Permittee failed to record the daily operational status of the Mold Vent Ignition (Light-Off) sources as required by the Respondent’s Operation and Maintenance Plan on 107 different instances from April 2007 to December 2007, in violation of permit condition E.1.2 of Part 70 permit No. 6491 and 40 CFR Part 63, Subpart EEEEE.

 

b.                  Pursuant to E.1.2 of Part 70 permit No. 6491 and 40 CFR Part 63, Subpart EEEEE, the Permittee shall comply with the provisions of the National Emission Standards for Hazardous Air Pollutants for Iron and Steel Foundries for the affected facilities.  Specifically Permittee must prepare and operate at all times according to a written operation and maintenance plan for each capture and collection system and control device for emission sources subject to an emission limit.

The Permittee failed to record the daily operational status of the fans on the pouring station hoods as required by the Respondent’s Operation and Maintenance Plan on 101 different instances from May 2007 to December 2007, in violation of permit condition E.1.2 of Part 70 permit No. 6491 and 40 CFR Part 63, Subpart EEEEE.

 

c.                  Pursuant to E.1.2 of Part 70 permit No. 6491 and 40 CFR Part 63, Subpart EEEEE, the Permittee shall comply with the provisions of the National Emission Standards for Hazardous Air Pollutants (NESHAP) for Iron and Steel Foundries for the affected facilities.  Specifically NESHAP compliance reports must be postmarked or delivered no later than July 31 or January 31, whichever date comes first, after the end of the semiannual reporting period.

The NESHAP compliance report for the first semiannual compliance period of 2007 was 328 days late, in violation of permit condition E.1.2 of Part 70 permit No. 6491 and 40 CFR Part 63, Subpart EEEEE.

The NESHAP compliance report for the second semiannual compliance period of 2007 was 144 days late, in violation of permit condition E.1.2 of Part 70 permit No. 6491 and 40 CFR Part 63, Subpart EEEEE.

 

d.                  Pursuant to C.19 of Part 70 permit No. 6491, the Permittee shall submit the Quarterly Deviation and Compliance Monitoring Report with any deviation from permit requirements, the dates of each deviation, the cause of the deviation, and the response steps taken.  This report shall be submitted within thirty (30) days of the end of the reporting period.

The Deviation and Compliance Monitoring Report for the second quarter of 2007 was 366 days late, in violation of permit condition C.19 of Part 70 permit No. 6491.

The Deviation and Compliance Monitoring Report for the third quarter of 2007 was 230 days late, in violation of permit condition C.19 of Part 70 permit No. 6491.

The Deviation and Compliance Monitoring Report for the fourth quarter of 2007 was 174 days late, in violation of permit condition C.19 of Part 70 permit No. 6491.

The Deviation and Compliance Monitoring Report for the first quarter of 2008 was 90 days late, in violation of permit condition C.19 of Part 70 permit No. 6491.

 

7.                  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 environmental rules 326 IAC 2-7-6(1), 326 IAC 2-7-5(3), and the National Emission Standard for Hazardous Air Pollutants (NESHAP) for Iron and Steel Foundries (40 CFR Part 63, Subpart EEEEE).

 

3.                  Within 90 days of the Effective Date, Respondent shall submit a summary of 45 days of visible emission notations used to demonstrate compliance with conditions D.9.6(a) and D.9.11(c) of permit No. 6708 at Site A.  The information included in this summary should start not earlier than the Effective Date of this Order.

 

4.                  Within 90 days of the Effective Date, Respondent shall submit a summary of 45 days of mold vent ignition operation and hood exhaust fan operation for each pouring station as required by the Operation and Maintenance plan for Site A and B.  The information included in this summary should start not earlier than the Effective Date of this Order.

 

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

 

Rebecca Hayes, Enforcement Case Manager

Office of Enforcement – Mail Code 60-02

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

6.                  Respondent is assessed a civil penalty of Twenty Eight Thousand Dollars ($28,000).  Said penalty amount shall be due and payable to the Environmental Management Special Fund within forty-five (45) days of the Effective Date.  In the event that the civil penalty is not paid within forty-five (45) 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.

 

7.                  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:

 

Paragraphs

Violation

Stipulated Penalty

3 - 4

Not submitting specified information within the time frame required.

$500 per week

 

8.                  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

 

9.                  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

 

10.             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 their status or responsibilities under this Agreed Order.

 

11.             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.

 

12.             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.

 

13.             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 their obligation to comply with the requirements of their applicable permit or any applicable Federal or State law or regulation.

 

14.             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.

 

15.             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.

 

16.             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.

 

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

 

 

TECHNICAL RECOMMENDATION:

 

RESPONDENT:

Department of Environmental Management

 

Dalton Corporation

 

 

 

By:

 

 

By:

 

 

Craig Henry, Chief

 

Printed:

 

 

Compliance and Enforcement  Section 4

 

Title:

 

 

Office of Air Quality

 

 

 

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

 

, 2009.

 

 

For the Commissioner:

 

 

 

Signed on June 22, 2009

 

Daniel Murray

 

Assistant Commissioner

 

Office of Air Quality