STATE OF INDIANA		)	SS:	BEFORE THE INDIANA DEPARTMENT OF
		)
COUNTY OF MARION		)		ENVIRONMENTAL MANAGEMENT
COMMISSIONER OF THE DEPARTMENT					)
OF ENVIRONMENTAL MANAGEMENT,					)
					)
Complainant,					)
					)
	v.				)	Case No. 2011-20242-H
					)
NAUTIC GLOBAL GROUP INC., d.b.a. POLAR KRAFT					)
					)
Respondent.					)

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 Nautic Global Group, Inc., d.b.a. Polar Kraft (“Respondent”), which owns and operates the facility with United States Environmental Protection Agency (EPA) ID No. IND051915650, located at 300 E Chicago Street, in Syracuse, Kosciusko 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:

Mr. William B. Sacher, President	Corporation Service Company,
Nautic Global Group, Inc., d.b.a. Polar Kraft	Registered Agent for,
1301 Avenue of the Americas 34^th Floor	Nautic Global Group, Inc., d.b.a. Polar Kraft
New York, NY 10019	Indianapolis, IN 46204

5. Respondent most recently notified U.S. Environmental Protection Agency (“EPA”) of hazardous waste small quantity generator (“SQG") activities on February 23, 2007.

6. Respondent manufactures various models of aluminum fishing boats for the professional and recreational fisherman.

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

8. During an investigation including an inspection on February 23, 2011 and a record review on April 4, 2011 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 proper hazardous waste determinations on the primer and top coat paint booth filters, which were solid wastes generated by Respondent.

Respondent made a waste determination on March 8, 2011, on the primer and top coat paint booth filters at the point of generation and after the paint dust had been shaken off the filter media. Respondent has determined the primer booth filters in both scenarios were found to be characteristically hazardous for chromium (D007) and the top coat paint booth filters were determined to be non-hazardous.

b. Pursuant to 40 CFR 262.12(c), a generator must not offer its hazardous waste to transporters or to treatment, storage, or disposal facilities that have not received an EPA identification number.

Respondent offered its hazardous waste identified in Finding 8.a. above to a transporter and to a treatment, storage, or disposal facility that did not have an EPA identification number. The primer paint booth filters (D007) were placed in Respondent’s solid waste trash compactor and disposed of at Earthmovers Landfill.

c. Pursuant to IC 13-30-2-1(12), a person may not cause or allow the transportation of a hazardous waste without a manifest if a manifest is required by law.

Respondent offered the hazardous waste identified in Finding 8.a. above for transportation for offsite treatment, storage, or disposal without preparing a manifest.

d. Pursuant to 40 CFR 262.20, a generator who transports, or offers for transportation, hazardous waste for offsite treatment, storage, or disposal, must prepare a manifest. A generator must designate on the manifest one facility which is permitted to handle the waste described on the manifest. A generator may designate an alternate facility to handle his waste in the event that an emergency prevents delivery of the waste to the primary designated facility.

Respondent offered the hazardous waste identified in Finding 8.a. above for transportation for offsite treatment, storage, or disposal without preparing a manifest.

e. Pursuant to 40 CFR 268.7(a)(1), a generator must determine if a hazardous waste is restricted from land disposal and if the waste has to be treated before being land disposed.

Respondent did not determine if the primer paint booth filters (D007) had to be treated prior to being land disposed.

f. Pursuant to 40 CFR 268.7(a)(2), with the initial shipment of waste to each treatment, storage, or disposal facility, a generator must send a one-time written notice to each facility receiving the waste and place a copy in the file.

Respondent failed to prepare a onetime written notice to the disposal facility for the primer paint booth filters (D007) and did not place a copy in the file.

9. Respondent calculated that from March of 2007 there were a total of seven (7) primer paint booth filter changes which totals to twenty-eight (28), three (3) foot by eight (8) foot filters being improperly disposed of has a non hazardous waste.

10. Respondent has developed and instructed employees on a new Standard Operating Procedure (SOP) for Changing and Disposing of Primer Paint Booth Filters.

11. 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 statutes and rules listed in the findings here and/or above at issue.

3. Upon the Effective Date, Respondent shall ensure compliance with 40 CFR 262.11. Specifically, the Respondent shall ensure that a proper waste determination is made for each solid waste generated at the Site.

4. Upon the effective date, Respondent shall ensure compliance with 40 CFR 262.34. Specifically, Respondent shall manage the prime coat paint filters as a hazardous waste.

5. Within thirty-five (35) days of the Effective Date, Respondent shall submit documentation to IDEM showing that the primer paint booth filters have been properly manifested to a permitted treatment, storage, and disposal facility (TSD).

6. Within thirty-five (35) days of the Effective Date of this Agreed Order, Respondent shall provide IDEM with documentation showing that the TSD which received the initial shipment of the primer paint booth filters were provided with a one-time written notice, pursuant to 40 CFR 268.7(a).

7. Upon the Effective Date, Respondent shall ensure compliance with 40 CFR 268.7(a). Specifically, Respondent shall determine if a hazardous waste is restricted from land disposal and if the waste has to be treated before being land disposed.

8. Upon the Effective Date, Respondent shall ensure compliance with 40 CFR 262.12(c). Specifically, Respondent shall ensure that it does not offer its hazardous waste to transporters or to a TSD that have not received an EPA identification number.

9. Upon the Effective Date, Respondent shall ensure compliance with 40 CFR 262.20 and IC 13. Specifically, the Respondent shall ensure that it does not cause or allow the transportation of a hazardous waste without a manifest.

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

Christina Halloran, Enforcement Case Manager

Office of Land Quality – Mail Code 60-02L

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

11. Respondent is assessed and agrees to pay a civil penalty of Thirteen Thousand Dollars ($13,000). Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date; the 30^th day being the “Due Date”.

12. 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
5	$500 per week
6	$500 per week

13. Stipulated penalties shall be due and payable no later than the 30^th day after Respondent receives written notice that Complainant has determined a stipulated penalty is due; the 30^th day being the “Due Date”. Complainant may notify Respondent at any time that a stipulated penalty is due. Failure to notify Respondent in writing in a timely manner of stipulated penalty assessment shall not waive Complainant’s right to collect such stipulated penalty or preclude Complainant from seeking additional relief against Respondent for violation of this Agreed Order. Neither assessment nor payment of stipulated penalties shall preclude Complainant from seeking additional relief against Respondent for a violation of this Agreed Order; such additional relief includes any remedies or sanctions available pursuant to Indiana law, including, but not limited to, civil penalties pursuant to IC 13-30-4.

14. 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

15. In the event that the monies due to IDEM pursuant to this Agreed Order are not paid on or before their Due Date, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1. The interest shall be computed as having accrued from the Due Date until the date that Respondent pays any unpaid balance. Such interest shall be payable to the Environmental Management Special Fund, and shall be payable to IDEM in the manner specified in Paragraph 11, above.

16. 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.

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 its obligation to comply with the requirements of its 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 IDEM issues a Resolution of Case letter to Respondent.

TECHNICAL RECOMMENDATION:				RESPONDENT:
Department of Environmental Management
By: _________________________				By: _________________________
	Nancy Johnston, Section Chief
	Enforcement Section			Printed: ______________________
Office of Land 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	_________________,	2011.
				For the Commissioner:
				Signed 12/12/2011 by_
				Bruce H Palin
				Assistant Commissioner
				Office of Land Quality