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. 2014-22551-U
					)
hai ii petroleum inc,					)
					)
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 Hai II Petroleum Inc. (“Respondent”), which owns/operates the Underground Storage Tank (UST) system, with UST Facility ID No. 3475, located at 601 E. Main Street in Hillsboro, Fountain County, Indiana (“Site”).

3. Respondent has (2) 6,000 gallon steel tanks and (1) 3,000 gallon steel tank all of which were installed January 1, 1985.

4. IDEM has jurisdiction over the parties and the subject matter of this action.

5. Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation (NOV) via Certified Mail to:

Harpaul S. Cheema, Registered Agent	Harpaul S. Cheema, Incorporator
Hai II Petroleum Inc.	Hai II Petroleum Inc.
601 E. Main Street	1530 Danielle Drive
Hillsboro, IN 47949	Indianapolis, IN 46231

6. Based on an investigation including an inspection conducted on July 17, 2014 , by a representative of IDEM, the following violations were found:

a. Pursuant to 329 IAC 9-2.1-1(b)(2)(B), if a steel tank is upgraded by internal lining, within one (1) year after lining, and every five (5) years thereafter, the lining and tank must be internally inspected and found to be structurally sound with the lining and tank still performing in accordance with requirements under 329 IAC 9-3.1-4.

As noted during the inspection and record review, Respondent failed to inspect the internal lining of the underground storage tanks at the Site as required by 329 IAC 9-2.1-1(b)(2)(B).

b. Pursuant to 329 IAC 9-2-2(b), any person who owns an UST system or tank shall, within thirty (30) days of owning such an UST system or tank or bringing such tank or UST system into use, submit notice to the agency to register the tank or UST system. Bringing a tank or UST system “into use” means the tank or UST system contains or has contained a regulated substance and not been closed under 329 IAC 9-6; and (d) an owner required to submit notice under this section shall provide all the information required by the form provided by the agency for each tank for which notice is submitted.

As noted during the inspection, Respondent, as owner of the UST system, failed to submit notice to IDEM within thirty (30) days of owning the UST system. No notification signed by Respondent as owner has been submitted to IDEM.

c. Pursuant to 329 IAC 9-6-2.5(a)(1), at least thirty (30) days before beginning closure, the owner and operator shall notify, using the notification form required by 329 IAC 9-2-2(a), the agency and the office of the state fire marshal of the intent to close as specified by one (1) of the methods in section 1 of this rule unless such action is a part of the response to corrective action.

As noted during the inspection and record review, Respondent attempted to remove the USTs at the Site without complying with the applicable requirements of 329 9-6-2.5(a). Specifically, Respondent excavated the UST Site but did not remove the tanks. Respondent did not notify IDEM and the Office of the State Fire Marshal of the intent to close.

d. Pursuant to 329 IAC 9-7-2(1), the owner and operator of a petroleum UST system shall provide release detection for tanks and piping as follows: tanks must be monitored at least every thirty (30) days for releases using one (1) of the methods listed in section 4(4) through 4(8) of 329 IAC 9-7.

As noted during the inspection, Respondent failed to perform monthly release detection for the underground storage tank system at the Site.

7. On May 1, 2015, IDEM received a closure report and an updated notification form from Respondent which is currently under review by IDEM.

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/or rules, listed in the findings above.

3. If necessary, Respondent shall perform any applicable requirements for corrective action under 329 IAC 9-5-1 through 329 IAC 9-5-8.

4. Respondent is assessed and agrees to pay a civil penalty of Eight Thousand Dollars ($8,000). Said penalty shall be made in eleven (11) monthly payments in the amount of Six Hundred and Sixty Six dollars and Sixty Six cents ($666.66) and one monthly payment of Six Hundred and Sixty Six dollars and Seventy Four cents ($666.74). The first installment shall be due and payable to the Underground Petroleum Storage Tank Trust Fund within sixty (60) days of the Effective Date; the 60^th day being the “Due Date”.

5. Civil penalties are payable by check to the “Underground Petroleum Storage Tank Trust Fund.” Checks shall include the Case Number of this action and shall be mailed to:

Indiana Department of Environmental Management

Office of Legal Counsel

IGCN, Room N1307

100 North Senate Avenue

Indianapolis, IN 46204

6. 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 Underground Petroleum Storage Tank Trust Fund, and shall be payable to IDEM in the manner specified in Paragraph 5, above.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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.

14. 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 RESPONDENT:
			By:
			Date:
APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL
MANAGEMENT THIS		DAY OF		20
			For the Commissioner:
			Signed November 5, 2015
			Bruce H Palin
			Assistant Commissioner
			Office of Land Quality