STATE OF INDIANA

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SS:

BEFORE THE INDIANA DEPARTMENT OF

 

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COUNTY OF MARION

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ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT

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OF ENVIRONMENTAL MANAGEMENT,

 

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Complainant,

 

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v.

 

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Case No. 2015-22955-H

 

 

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EXEON PROCESSORS, LLC,

 

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Respondent.

 

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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 Exeon Processors, LLC (“Respondent”), which owns/operates the facility with United States Environmental Protection Agency (“EPA”) ID No. INR 000 138 859 located at 232 West Pearl Street, in Jonesboro, Grant 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:

 

Mr. Steve Lundergan

Exeon Processors, LLC

Vice President & General Manager

1745 West Fulton Street

Exeon Processors, LLC

Chicago, Illinois  60612

232 West Pearl Street

 

Jonesboro, Indiana  46938

 

 

 

CT Corporation System, Registered Agent for

 

Exeon Processors, LLC

 

150 West Market Street, Suite 800

 

Indianapolis, Indiana  46204

 

 

5.            Respondent notified EPA of Large Quantity Generator/Small Quantity Generator activities on June 24, 2015.  Respondent further designated its hazardous waste activities as a Short-Term Generator commenting because of a change in Respondent’s processes hazardous waste is no longer generated.

 

6.            Respondent buys and processes all types of copper scrap, focusing mainly on the chopping of #1 and #2 insulated copper wire.

 

7.            IDEM representatives conducted an inspection on February 12, 2014.  As a result of this inspection a Violation Letter was issued on March 13, 2014.  Respondent submitted a response to the Violation Letter dated April 11, 2014.

 

8.            The Violation Letter requested a waste determination to be conducted on the baghouse dust from each baghouse prior to spraying the baghouse dust with an acid/water mixture and for the plastics from the Carpco separator at the point of generation. Typically, the baghouse dust is brought back into the facility, sprayed with an acid/water mixture, tested for hazardous waste characteristics, and then mixed with the Carpco waste.  According to the facility representative the acid/water mixture is sprayed to immobilize hazardous metals.  The analytical results provided by Respondent during the February 2014 inspection and the analytical results submitted indicated this material to be non-hazardous after sprayed with the acid/water mixture.

 

9.            On November 7, 2014 IDEM representatives conducted a Sampling Event and PCB Inspection.  IDEM representatives sampled the baghouse dust from each baghouse prior to being sprayed with the acid/water mixture and prior to being mixed with the plastics from the Carpco separator.  The plastics from the Carpco separator were also sampled prior to being mixed with the baghouse dust.  Respondent’s test results showed that none of the materials were hazardous.  However, IDEM’s test results indicated that the baghouse dust from both baghouses was hazardous for cadmium (D006), and that the plastics from the Carpco separator were nonhazardous.  IDEM’s test results were first provided to Respondent by a letter dated April 9, 2015.

 

10.         Respondent submitted a response dated June 5, 2015 to the April 9, 2015 letter sent by IDEM.  Respondent has installed an in-line stabilization system and Respondent contends waste generated no longer exhibits the toxicity characteristic.

 

11.         329 Indiana Administrative Code (“IAC”) 3.1 incorporates certain federal hazardous waste management requirements found in 40 Code of Federal Regulations (“CFR”) Parts 260 through 270, and Part 273 including those identified below.

 

12.         During an investigation including an inspection on February 12, 2014 and a sampling event on November 7, 2014 conducted by representatives 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.

 

As noted during the February 12, 2014 inspection, Respondent’s hazardous waste determinations on the baghouse dust and the plastics from the Carpco separator, which were solid wastes generated by Respondent, were not made at the point of generation.  Respondent’s testing showed that all materials were non-hazardous.  IDEM conducted its sampling on November 7, 2014.  IDEM samples of baghouse dust were taken from each baghouse on the north side of the building prior to being sprayed with the acid/water mixture.  The baghouse dust for both baghouses was determined to be hazardous for cadmium (D006).  The Carpco waste was also sampled prior to being mixed with the baghouse dust and it was determined to be non-hazardous. According to the facility representative, at the time of the inspection, approximately 63,000 pounds per month of the baghouse dust are generated and approximately 400,000-500,000 pounds of the mixed waste streams are generated each month.  The mixed wastes were disposed at a Permitted Subtitle D Solid Waste Landfill (Jay County Landfill).

 

b.         Pursuant to IC 13-30-2-1(3), no person shall deposit any contaminants upon the land in a place and manner that creates or would create a pollution hazard that violates or would violate 329 IAC 10-4-2 and 40 CFR 265.31.

 

As noted during the February 12, 2014 inspection, Respondent deposited a contaminant, including, but not limited to baghouse dust (determined by IDEM to be D006) and baghouse dust and Carpco Waste, upon the land in a place and manner that creates or would create a pollution hazard that violates or would violate 329 IAC 10-4-2 and  40 CFR 265.31.  Specifically, releases of baghouse dust (determined by IDEM to be D006) were observed under the large and small baghouses on the north side of the facility and also a release of baghouse dust and Carpco waste (PVC, rubber and crosslink) was observed around the solid waste roll-offs on the north side of the facility, both releases occurring on paved surfaces.

 

In early March of 2014, the baghouse dust (~5-10 pounds) and the combined baghouse dust/Carpco waste (~50-100 pounds) was cleaned and disposed at a Permitted Subtitle D Solid Waste Landfill.

 

c.            Pursuant to 329 IAC 10-4-2, no person shall cause or allow the storage, containment, processing, or disposal of solid waste in a manner which creates a threat to human health or the environment, including the creating of a fire hazard, vector attraction, air or water pollution, or other contamination.

 

As noted during the February 12, 2014 inspection, Respondent allowed solid waste, including, but not limited to baghouse dust (determined by IDEM to be D006) and Carpco waste, to be released at the Site in a manner which creates a threat to human health or the environment.  Specifically, releases of baghouse dust (determined by IDEM to be D006) were observed under the large and small baghouses on the north side of the facility and also a release of baghouse dust and Carpco waste (PVC, rubber and crosslink) was observed around the solid waste roll-offs on the north side of the facility, both releases occurring on paved surfaces.

 

In early March of 2014, the baghouse dust (~5-10 pounds) and the combined baghouse dust/Carpco waste (~50-100 pounds) was cleaned and disposed at a Permitted Subtitle D Solid Waste Landfill.

 

d.            Pursuant to 40 CFR 265.31, facilities must be maintained and operated to minimize the possibility of a fire, explosion, or any unplanned sudden or non-sudden release of hazardous waste or hazardous waste constituents to air, or surface water, which could threaten human health or the environment.

 

As noted during the February 12, 2014 inspection, Respondent allowed baghouse dust, found by IDEM to be hazardous for Cadmium, to be released to the environment onto paved surfaces under the baghouses located on the north side of the facility on to paved surfaces.  Specifically, containers under drop-chutes from the baghouses were either overflowing or not in place to catch and contain baghouse dust.  At the time of the November 7, 2014 sampling event, the containers were under the baghouses; however, they were not connected to the chutes coming from the baghouses nor were they closed or labeled.

 

In early March of 2014, the baghouse dust (~5-10 pounds) and the combined baghouse dust/Carpco waste (~50-100 pounds) was cleaned and disposed at a Permitted Subtitle D Solid Waste Landfill.

 

e.            Pursuant to 329 IAC 13-4-5, generators must ensure that their used oil is transported only by transporters who have obtained EPA identification numbers.

 

As noted during the February 12, 2014 inspection, used oil coolant from the knife sharpeners/grinders was being shipped offsite, by transporters who have not obtained an EPA ID number, with shavings to scrap/salvage yards.

 

According to Respondent’s submittal dated April 11, 2014, Respondent has contracted Heritage-Crystal Clean to manage any future used oil coolant generated from the knife grinding/sharpening process.

 

f.             Pursuant to 329 IAC 3.1-1-10, every hazardous waste generator, transporter, or owner or operator of a hazardous waste facility shall notify the commissioner of its hazardous waste activity on the approved forms.

 

As noted during the November 7, 2014 sampling event, Respondent failed to notify the Commissioner of hazardous waste generator activities.  Specifically, Respondent generates large quantities of baghouse dust that was determined by IDEM to be characteristically hazardous for cadmium (D006).  Subsequent to the inspection Respondent notified IDEM of its hazardous waste large quantity generator activities.

 

g.            Pursuant to 40 CFR 262.34(a)(1)(i) referencing 40 CFR 265.173(a), a container holding hazardous waste must always be closed during storage, except when it is necessary to add or remove waste.

 

As noted during the November 7, 2014 sampling event, Respondent did not store containers of hazardous waste closed.  Specifically, the containers accumulating baghouse dust (determined by IDEM to be D006) under the chutes coming from the baghouses and the hopper used to collect baghouse dust (determined by IDEM to be D006) after re-entering the building from the baghouse while waiting to be sprayed with an acid/water mixture were not stored closed except when adding or removing waste.

 

h.            Pursuant to 40 CFR 262.34(a)(3), a generator may accumulate hazardous waste on-site for 90 days or less without a permit, provided that, while being accumulated on-site, each container and tank is labeled or marked clearly with the words "Hazardous Waste."

 

As noted during the November 7, 2014 sampling event, Respondent accumulated hazardous waste on-site, without a permit, and did not label or clearly mark hazardous waste containers with the words "Hazardous Waste."  Specifically, the containers accumulating baghouse dust (determined by IDEM to be D006) under the chutes coming from the baghouses and the hopper used to collect baghouse dust (determined by IDEM to be D006) after re-entering the building from the baghouse while waiting to be sprayed with an acid/water mixture were not labeled with the words ‘Hazardous Waste.”

 

i.              Pursuant to 40 CFR 262.34(a)(4) referencing 40 CFR 265.51, a generator must have a contingency plan for the facility.

 

As noted during the November 7, 2014 sampling event, Respondent did not have a contingency plan.

 

j.              Pursuant to 40 CFR 262.34(a)(4) referencing 40 CFR 265.16(a), (b), & (c), facility personnel must complete a program of classroom instruction or on-the-job training that teaches them to perform their duties in compliance with the hazardous waste management rules.  Employees must be trained within six months after their date of hire and must take part in an annual review of the initial training.

 

As noted during the November 7, 2014 sampling event, Respondent did not provide employees with the required hazardous waste training.

 

k.            Pursuant to 40 CFR 262.34 referencing 40 CFR 268.7(a), a generator of hazardous waste must determine if the waste has to be treated before it can be land disposed. This is done by determining if the hazardous waste meets the treatment standards in 40 CFR 268.40, 40 CFR 268.45, or 40 CFR 268.49. This determination can be made in either of two ways: testing the waste or using knowledge of the waste. With the initial shipment of hazardous waste (meeting or not meeting the treatment standards in 40 CFR 268.40 and 40 CFR 268.42) to each treatment or storage facility, the generator must send a one-time written notice to each treatment or storage facility receiving the waste, and place a copy in the file. No further notification is necessary until such time that the waste or facility change, in which case a new notification must be sent and a copy placed in the generator's file.

 

Waste analyses presented to IDEM during the 2/12/14 inspection indicated the waste was non-hazardous; however, the waste analysis was conducted after the waste had been sprayed with acid/water mixture.  Sampling conducted by IDEM showed the baghouse dust to be hazardous for cadmium (D006) at the point of generation.  Respondent contends that the baghouse dust met applicable treatment standards at the time of disposal.  A one-time notification was not submitted to the facility receiving the waste (Jay County Landfill) indicating that the waste meets or does not meet treatment standards.

 

13.       In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Agreed Order.  Compliance with this Agreed Order resolves all violations identified in the October 22, 2015 Notice of Violation issued in this matter.

 

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, rules, and/or permit conditions listed in the findings above.

 

3.            Upon the Effective Date, Respondent shall comply with 40 CFR 262.11.  Specifically, Respondent shall ensure that a proper waste determination is made for all solid waste at the point of generation.  If the waste is hazardous it shall be managed according to the applicable regulations.

 

4.            Respondent shall comply with IC 13-30-2-1(3), 329 IAC 10-4-2, and 40 CFR 265.31.  Specifically, Respondent has submitted to IDEM a plan on how future releases will be addressed.  The plan included that releases/spills will be responded to within 24 hours.  The plan included preventive measures that will be taken to prevent future baghouse dust and baghouse dust and Carpco waste releases/spills.

 

5.            Upon the Effective Date, Respondent shall comply with 329 IAC 13-4-5 and ensure that their used oil is transported only by transporters who obtained EPA identification numbers.

 

6.            Upon the Effective Date, Respondent shall ensure compliance with 40 CFR 262.34(a)(1)(i) referencing 40 CFR 265.173(a).  Specifically, Respondent shall ensure any hazardous waste containers are stored closed except when adding or removing waste.

 

7.            Upon the Effective Date, Respondent shall ensure compliance with 40 CFR 262.34(a)(3).  Specifically, Respondent shall label or mark any containers and tanks accumulating hazardous waste onsite with the words “Hazardous Waste”.

 

8.            Should Respondent become subject to LQG standards, Respondent shall comply with the requirement to create a contingency plan in accordance with 40 CFR 262.34(a)(4) referencing 40 CFR 265.51.

 

9.            Should Respondent become subject to LQG standards, Respondent shall comply with 40 CFR 262.34(a)(4) referencing 40 CFR 265.16.

 

10.         Upon the Effective Date, Respondent shall comply with 40 CFR 262.34 referencing 40 CFR 268.7(a).  If Respondent treats the baghouse dust and/or baghouse dust mixed with Carpco waste to meet treatment standards, Respondent shall submit to IDEM the waste analysis plan followed to ensure the wastes meet the treatment standards in 40 CFR 268.40 and 40 CFR 268.42.

 

11.         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

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

12.         Respondent is assessed and agrees to pay a civil penalty of Thirty Thousand Dollars ($30,000).  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”.

 

13.         Civil 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

Office of Legal Counsel

IGCN, Room N1307

100 North Senate Avenue

Indianapolis, IN 46204

 

14.         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 13, above.

 

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

 

16.         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.

 

17.         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.

 

18.         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.

 

19.         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.

 

20.         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.

 

21.         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.

 

22.         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: _______________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

______

DAY OF

________________________,

20__.

 

 

For the Commissioner:

 

 

 

Signed 07/08/16 by Peggy Dorsey for:

 

Bruce H Palin

 

Assistant Commissioner

 

Office of Land Quality