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.

Michael Materna d/b/a Materna Farms,

Respondent.

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Case No.
2010-19470-W

 

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 Michael Materna, d/b/a Materna Farms (Respondent), which owns and operates a mint farming and distillation operation located at 8735 N 850 East, Walkerton, Starke County, Indiana (the Site), with a principal business location at 407 W. Plymouth Street in Hamlet, Indiana.

 

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:  Michael T. Materna, 407 W. Plymouth St., Hamlet, IN 46532.

 

5.            During an investigation conducted from August 9, through August 19, 2010, by a representative of IDEM, the following violations were found:

 

Pursuant to 327 IAC 5-2-2, any discharge of pollutants into the waters of the state as a point source discharge is prohibited unless in conformity with a valid NPDES permit obtained prior to the discharge.

 

Pursuant to IC 13-30-2-1, no person may 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 or into any publicly owned treatment works in any form which causes or would cause pollution which violates rules, standards, or discharge or emission requirements adopted by the appropriate board pursuant to this title.

 

During the investigation, Respondent was observed by IDEM staff to be discharging wastewater from its mint distillation operation into a roadside ditch tributary to Robbins Ditch, without a valid NPDES permit obtained prior to the discharge, in violation of 327 IAC 5-2-2.  These events caused or contributed to a polluted condition.  Because 327 IAC 5-2-2 is a rule of the Water Pollution Control Board, Respondent’s discharge of pollutants also was in violation of IC 13-30-2-1.

 

6.            On January 14, 2011 Respondent and IDEM staff met to discuss settlement of this case.  Further correspondence and telephone communication was conducted.

 

7.            On April 25, 2011, IDEM issued an NPDES permit to Respondent, with permit number IN0063746, with an effective date of May 31, 2011.

 

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 the statutes and rules listed in the findings above at issue.

 

3.        Within thirty days of the Effective Date, Respondent shall develop and submit to IDEM for approval a Compliance Plan (CP) which identifies actions that Respondent will take to achieve and maintain compliance, specifically including the actions Respondent will take to:

a.        Comply with all NPDES permit requirements including flow measurement, effluent limitations, recordkeeping, sampling and reporting (this item may be in the form of an operation and maintenance manual); and

b.        Re-route the discharge of boiler blowdown (which currently goes onto the ground) to comingle with other wastestreams prior to discharge via the permitted outfall point.

 

The CP shall include an implementation and completion schedule, including specific milestone dates.  This schedule should anticipate full compliance with NPDES requirements upon initiation of discharge in 2011.

 

4.        Respondent shall, upon discharging during the 2011 operating season (Performance Period), demonstrate continuous compliance (Compliance Demonstration) with the requirements of Paragraph 3 above, including thermal effluent limitations contained in its NPDES Permit for the duration of the discharge season.  During the Performance Period, Respondent shall be subject to stipulated penalties, as specified in Paragraph 13 below.  In the event that Respondent fails to make the Compliance Demonstration, Respondent shall, within thirty days of becoming aware that the Compliance Demonstration cannot be achieved, develop and submit to IDEM, for approval, an Additional Action Plan which identifies the additional actions that Respondent will take to achieve and maintain compliance with the effluent limitations contained in its NPDES Permit.  The Additional Action Plan, if required, shall include an implementation and completion schedule, including specific milestone dates.

 

5.        The plans required by Paragraphs 3 and 4 above are subject to IDEM approval.  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 submissions of such plan by Respondent, IDEM may modify and approve any such plan and Respondent must implement the plan as modified by IDEM.

 

6.        Respondent, upon receipt of written notification from IDEM, shall immediately implement the approved plan and adhere to the milestone dates therein.  The approved CP and Additional Action Plan shall be incorporated into the Agreed Order and shall be deemed an enforceable part thereof.  Failure by Respondent to submit any plan by the specified date or to meet any of the milestones in the approved plan will subject Respondent to stipulated penalties as described below.  Failure to achieve compliance at the conclusion of work under an Additional Action Plan will subject Respondent to additional enforcement action.

 

7.        Respondent shall submit to IDEM a written report of progress or completion for each milestone date included in the CP or Additional Action Plan.

 

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

 

Mark Stanifer, Section Chief

Indiana Department of Environmental Management

Office of Water Quality – Mail Code 60-02W

Water Enforcement Section

100 North Senate Avenue, Room 1255

Indianapolis, IN 46204-2251

 

9.        Respondent is assessed a civil penalty of Forty Thousand Forty Dollars ($40,040).  Within thirty days of the Effective Date of the Agreed Order, Respondent shall pay a portion of this penalty in the amount of Eight Thousand Eight Dollars ($8008).  Said penalty amount shall be due and payable to the Environmental Management Special Fund.  In lieu of payment of the remaining $32,032 of the civil penalty, Respondent shall perform and complete a Supplemental Environmental Project (SEP).  Respondent has not yet determined the full cost of this SEP.  Within sixty days of completing this SEP, Respondent shall submit written notice and documentation to IDEM which substantiates all actions taken or planned to be taken, and costs incurred with respect to the SEP.  In the event that the cost of the SEP is less than $32,032, Respondent shall pay the difference between the allowed SEP offset ($32,032) and the actual cost of the SEP.

 

10.     As a Supplemental Environmental Project, Respondent shall submit a complete SEP application to IDEM within 60 days of the effective date that may include multiple SEP proposals, including but not limited to:

 

a.        Installation of a guardrail along County road 850 East, across from Respondent’s plant site, to protect passing motorists from going off the road and into the roadside ditch.

b.        Purchase, install, maintain, and continuously operate a continuous (recording) temperature monitor to determine the temperature of Respondent’s effluent prior to entering the receiving stream.

c.        Relocate the discharge point, to include off-stream mixing to co-mingle all of Respondent’s wastestreams prior to discharge to Waters of the State.  This shall include an effluent weir, with the weir overflow to be the NPDES point of compliance, eliminating the need for an instream mixing zone.

 

The SEP proposal is subject to approval by IDEM, following the procedure described in paragraphs 5 and 6 above.

 

11.     Upon approval of the SEP proposal by IDEM, Respondent shall complete the SEP or SEPs by no later than one year from the effective date.

 

12.     In the event that Respondent does not complete the approved SEP within one year of the effective date, the full amount of the civil penalty as stated in paragraph 9 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 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 days after the Effective Date until the full civil penalty is paid.

 

13.     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

Violation

Stipulated Penalty

 

3

Failure to submit compliance plan within the required time period.

$200 per week late, or part thereof.

4

Failure to submit or modify the Additional Action Plan, if required, within the given time period.

$200 per week late, or part thereof.

4

Failure to comply with applicable effluent limitations during the Performance Period.

$500 per event.

5

Failure to submit a revised CP if required.

$200 per week late, or part thereof.

6

Failure to meet any milestone date set forth in the approved CP.

$100 per week late, or part thereof.

7

Failure to provide IDEM with a written report of milestone completion.

$300 per week late, or part thereof.

 

14.     Stipulated penalties shall be due and payable within 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, or in the case of violation of other provisions of this Agreed Order, 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.

 

15.     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

 

16.     This Agreed Order shall apply to and be binding upon Respondent and his successors and assigns. Respondent’s signatories to this Agreed Order certify that he is fully authorized to execute this Agreed Order and legally bind the party he represents.  No change in ownership, corporate, or partnership status of Respondent shall in any way alter his status or responsibilities under this Agreed Order.

 

17.     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.

 

18.     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.

 

19.     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 his obligation to comply with the requirements of his applicable permits or any applicable Federal or State law or regulation.

 

20.     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.

 

21.     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.

 

22.     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.

 

23.     This Agreed Order shall remain in effect until Respondent has complied with all terms and conditions of Order Paragraph Nos. 3 through 15 and IDEM issues a Resolution of Case (close-out) letter.

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 

TECHNICAL RECOMMENDATION:

RESPONDENT:

Department of Environmental Management

 

 

By: ________________________

By:  ________________________

Mark W. Stanifer, Chief

 

Water Enforcement Section

Printed:  _____________________

Surface Water, Operations and

 

Enforcement Branch

 

Office of Water Quality

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 ____________________, 20___

 

 

For the Commissioner:

 

 

 

Signed on August 12, 2011.

 

Bruno Pigott

 

Assistant Commissioner

 

Office of Water Quality