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 LLC,

Respondent.

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Case No. 2013-21560-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 LLC (“Respondent”), which owns and operates the source with Plant ID No. 127-00036, located at 6500 South 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”) to:

 

Paul Fiore, President & COO

CT Corporation System, Registered Agent

NLMK Indiana LLC

150 West Market Street Ste. 800

6500 South Boundary Rd.

Indianapolis, IN 46204

Portage, IN 46368

 

 

Respondent owns and operates a stationary steel mini mill.

 

5.            During a stack test report review conducted by a representative of IDEM, the following violations were found:

 

a.         Pursuant to Condition D.2.1 of Title V State Operating Permit No. 127-27948-00036 (“Permit”), issued October 2, 2009 and 326 IAC 2-2-3, respondent shall not cause or allow to be discharged into the atmosphere from the Hot Strip Mill Slab Reheat Furnace (Unit 10) particulate matter (“PM10”) emissions that exceed 16.3 pounds per MMscf (“lb/MMscf”) of natural gas burned.

Respondent’s average PM10 emissions during a stack test completed on November 7, 2012 were 18.2 lb/MMscf, exceeding the emissions limitation of 16.3 lb/MMscf, in violation of Condition D.2.1 of the Permit and 326 IAC 2-2-3.

 

b.         Pursuant to Permit Condition D.2.4 of the Permit and 326 IAC 2-2-3, respondent shall not cause or allow to be discharged into the atmosphere from the Hot Strip Mill Slab Reheat Furnace (Unit 10) Volatile Organic Compounds (“VOC”) emissions that exceed 1.7 lb/MMscf of natural gas burned.

Respondent’s average VOC emissions during a stack test completed on November 7, 2012 were 3.2 lb/MMscf, exceeding the emissions limitation of 1.7 lb/MMscf, in violation of Condition D.2.4 of the Permit and 326 IAC 2-2-3.

 

c.         Pursuant to Permit Condition D.2.4 of the Permit and 326 IAC 2-2-3, respondent shall not cause or allow to be discharged into the atmosphere from the Hot Strip Mill Slab Reheat Furnace (Unit 10) VOC emissions that exceed 0.4 lb/hr.

Respondent’s average VOC emissions during a stack test completed on November 7, 2012 were 0.5 lb/hr, exceeding the emissions limitation of 0.4 lb/hr, in violation of Condition D.2.4 of the Permit and 326 IAC 2-2-3.

 

7.            On 2/21/2013, respondent conducted a stack retest on the Hot Strip Mill Reheat Furnace, test results produced PM10 emissions of 8.9 lb/MMscf natural gas, VOC emissions of 0.0 lb/ MMscf natural gas and 0.0 lb/hr; each below the allowable limits of 16.3 lb PM10/MMscf natural gas, 1.7 lb VOC/MMscf natural gas, and 0.4 lb VOC/hr; respectively.

 

8.            Respondent developed a Process/ Practice Change form to document changes that occur in firing practices and commits to using it to document any changes made to the excess air settings.

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”) 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 not cause or allow to be discharged into the atmosphere from the Hot Strip Mill Slab Reheat Furnace any concentration of emissions in excess of 16.3 lb/MMscf natural gas of PM10, or 1.7 lb/MMscf natural gas and 0.4 lb/hr of VOCs.

 

3.            Within sixty (60) days of the Effective Date, Respondent shall perform PM10 and VOC stack testing on the Hot Strip Mill Slab Reheat Furnace to ensure compliance. Respondent shall then return to previous annual stack testing schedule, per the requirements listed in Condition D.2.6 of the permit, to demonstrate compliance with the PM10 and VOC emission limits. All required testing shall be conducted in accordance with 326 IAC 3-6.

 

4.            Within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall submit a revised Preventative Maintenance Plan that incorporates a contracted third party performing burner tuning services every six months, and conducting pressure drop checks of the burner pipes quarterly.

           

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

 

Amanda Kulpa, 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

 

6.            Respondent is assessed and agrees to pay a civil penalty of Thirteen Thousand Seven Hundred Fifty Dollars ($13,750). Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date; the 30th day being the “Due Date”.

 

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:

 

Paragraph

Stipulated Penalty

Order Paragraph 3 (Failure to conduct timely testing)

Order Paragraph 4 (Failure to provide  revised plan)

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

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

 

8.            Stipulated penalties shall be due and payable no later than the 30th day after Respondent receives written notice that Complainant has determined a stipulated penalty is due; the 30th 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 a 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.

 

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 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 9, above.

 

12.         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.

 

13.         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.

 

14.         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.

 

15.         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.

 

16.         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.

 

17.         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.

 

18.         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, LLC

 

 

 

By:

 

 

By:

 

 

J. Robert Simmons, Deputy Director

 

Printed:

 

 

Northwest Regional Office

 

Title:

 

 

 

 

 

 

Date:

 

 

Date:

 

 

 

 

 

 

 

 

 

 

 

COUNSEL FOR RESPONDENT:

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date:

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 2014.

 

 

For the Commissioner

 

 

 

Signed on August 15, 2014

 

Keith Baugues, Assistant Commissioner

 

Office of Air Quality

 

Indiana Department of Environmental Management