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.

NLMK-INDIANA,

Respondent.

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Case No. 2010-19153-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 NLMK-Indiana, formerly Beta Steel Corporation, (“Respondent”), which owns and operates the stationary steel mini mill with Plant ID No. 127-00036, located at 6500 S. Boundary Road, in Portage, Porter 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”) via Certified Mail to:

 

Peter Zasowski, President

Donna Blackwell

NLMK-Indiana

Corporation Controller

6500 S. Boundary Road

NLMK-Indiana

Portage, IN 46368

6500 S. Boundary Road

 

Portage, IN 46368

 

5.            During an investigation conducted by a representative of IDEM, the following violations were found:

 

a.         Pursuant to 326 IAC 2-2-3 and Condition D.1.3 of Part 70 Permit No. 127-27948-00036 (“Permit”), issued to Respondent on October 2, 2009, the SO2 emissions from the melt shop stack shall not exceed 0.33 pounds per ton of steel produced and 49.83 pounds per hour from the baghouse stack.

Based on the stack test on the melt shop stack conducted on October 15, 2009 and October 16, 2009, the SO2 emissions were 0.39 pounds per ton and 65.59 pounds per hour in violation of 326 IAC 2-2-3 and Condition D.1.3 of the Permit.

 

b.         Pursuant to 326 IAC 2-2-3 and Condition D.2.1 of the Permit, the PM emissions from the slab reheat furnace shall not exceed 16.3 pounds MMscf of natural gas burned and 4.2 pounds per hour.

Based on the stack test on the slab reheat furnace stack conducted on August 20, 2009 and August 21, 2009, the PM emissions were 25.7 pounds per MMscf in violation of 326 IAC 2-2-3 and Condition D.2.1 of the Permit.

 

c.            Pursuant to 326 IAC 2-2-3 and Condition D.2.4 of the Permit, the VOC emissions from the slab reheat furnace shall not exceed 1.7 pounds MMscf of natural gas burned and 0.4 pounds per hour.


Based on the stack test on the slab reheat furnace conducted on August 20, 2009 and August 21, 2009, the VOC emissions were 0.762 pounds per hour in violation of 326 IAC 2-2-3 and Condition D.2.4 of the Permit.

 

6.            The source conducted retesting on the melt shop and slab reheat furnace on April 7-9, 2010.  The tests indicated the melt shop was able to comply with the SO2 limit and the slab reheat furnace was able to comply with the PM and VOC limits.

 

7.            The source conducted additional stack testing on the slab reheat furnace on February 24, 2011.  The test indicated the slab reheat furnace was able to comply with the VOC limits.

 

8.            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 326 IAC 2-2-3 and Condition D.1.3, Condition D.2.1 and Condition D.2.4 of the Permit.

 

3.            a.  Respondent shall continue to investigate the cause of the VOC exceedances on the slab reheat furnace.  Respondent shall document the potential causes explored and procedures used to investigate the root cause(s).  Respondent shall keep records of any furnace cleaning at the slab reheat furnace during the investigation.

 

b.  No later than one hundred and twenty (120) days of the effective date of this order, Respondent shall submit a report documenting the methods and findings of the VOC emission exceedances root cause investigation along with the dates and results of the furnace cleanings.

 

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

 

Rick Massoels, Compliance and Enforcement Manager

Compliance and Enforcement Branch – Mail Code 61-53

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

5.            Respondent is assessed a civil penalty of Twenty-Nine Thousand Six Hundred Eighty-Seven and Fifty cents ($29,687.50).  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.

 

6.            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 Paragraph No. 3 (b)

One Hundred Dollars ($100.00) per week or part thereof

 

7.            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.

 

8.            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:

 

Department of Environmental Management

Cashier – Mail Code 50-10C

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

9.            Force majeure, for purposes of this Agreed Order, is defined as any event arising from causes totally beyond the control and without fault of 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 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 (1) changed business or economic conditions; (2) financial inability to complete the work required by this Agreed Order; or (3) increases in costs to perform the work.

 

Respondent shall notify IDEM by calling the compliance and enforcement manager within three (3) calendar days and by writing no later than seven (7) calendar days after it has knowledge of any event which Respondent contends is a force majeure.  Such notification shall describe (1) the anticipated length of the delay; (2) the cause or causes of the delay; (3) the measures taken or to be taken by Respondent to minimize the delay; and (4) the timetable by which these measures will be implemented.  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. 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.

 

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

 

NLMK-Indiana

 

 

 

By:

 

 

By:

 

 

J. Robert Simmons, Deputy Director

 

Printed:

 

 

Northwest Regional Office

 

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

 

, 2011.

 

 

For the Commissioner

 

 

 

Signed on August 30, 2011

 

Keith Baugues, Assistant Commissioner

 

Office of Air Quality

 

Indiana Department of Environmental Management