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. 2017-24287-U
					)
RS Sallan, llc,					)
					)
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 RS Sallan, LLC (“Respondent”), which owns and operates the facility with Facility ID No. 15067, located at 2100 Virginia Street, in Gary, Lake County, Indiana (“Site”).

3. Respondent owns one (1) 8,000 gallon and two (2) 4,000 gallon underground storage tanks (USTs). The 4,000 gallon tanks were installed in 1987 and are steel construction. The 8,000 gallon UST was not previously registered; however, it was included on the Notification for Underground Storage Tanks form submitted June 29, 2017. The 8,000 gallon UST was reported to be fiberglass construction.

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 RS Sallan, LLC, owner and operator of the facility and Satwinder Singh, Registered Agent for RS Sallan, LLC.

6. During an investigation, including inspections on March 11, 2015; May 9, 2016; and a November 29, 2016 record review conducted by a representative of IDEM, the following violations were found:

a. Pursuant to 329 Indiana Administrative Code (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 has not been closed under 329 IAC 9-6.

As noted during inspections on March 11, 2015; May 9, 2016; and November 29, 2016, Respondent failed to submit required notification of all USTs at the facility. Respondent has owned the property since October 28, 2012.

On June 29, 2017, IDEM received the Notification for Underground Storage Tanks form. Three (3) USTs were registered and placed in temporary closure.

b. Pursuant to 329 IAC 9-2.1-1(d), all existing UST systems shall comply with the new UST system spill and overfill prevention equipment requirements under 329 IAC 9-2-1(3) and 329 IAC 9-3.1-1 to prevent spilling and overfilling associated with product transfer to the UST system.

As noted during inspections on March 11, 2015; May 9, 2016; and November 29, 2016, the north UST spill catchment basin requires repair or replacement. Respondent has failed to complete necessary repair or replacement activities.

c. Pursuant to 329 IAC 9-3.1-2(1), (2), and (3), the owner and operator of a steel UST system with corrosion protection shall comply with the following requirements to ensure that releases due to corrosion are prevented for as long as the UST system is used to store regulated substances:

(1) All corrosion protection systems must be operated and maintained to continuously provide corrosion protection to the metal components of that portion of the tank and piping that routinely contain regulated substances and are in contact with the ground.

(2) All UST systems equipped with galvanic cathodic protection systems must be inspected for proper operation by a qualified cathodic protection tester under the following requirements: (A) all galvanic cathodic protection systems must be tested within six (6) months of installation and at least every three (3) years thereafter; and (B) Nace International (formerly the National Association of Corrosion Engineers) Standard RP0285-95 “Corrosion Control of Underground Storage Tank Systems by Cathodic Protection”, revised 1995 NACE International, P.O. Box 218340, Houston, Texas 77218-8340.

(3) All UST systems with impressed cathodic protection systems must be: (A) inspected every sixty (60) days to ensure the equipment is running according to manufacturer’s specifications; and (B) tested within six (6) months of installation and at least every three (3) years thereafter.

As noted during inspections on March 11, 2015; May 9, 2016; and November 29, 2016, corrosion protection systems have not been tested for three (3) or more years. Respondent has failed to complete and submit the required test results to IDEM.

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 inspections on March 11, 2015; May 9, 2016; and November 29, 2016, an appropriate method of release detection for tank number three (8,000 gallon) has not been performed since March 2014. The automatic tank gauging (ATG) system was documented as malfunctioning in 2015. Respondent has failed to provide release detection for the UST system, complete tank tightness testing, and submit documentation of test results and any necessary repairs to IDEM for review.

e. Pursuant to 329 IAC 9-8-21(a), an owner or operator shall maintain evidence of all financial assurance mechanisms used to demonstrate financial responsibility under this rule for an underground storage tank until released from the requirements of this rule under section 23 of this rule. An owner or operator shall maintain such evidence at the underground storage tank site or the owner’s or operator’s place of work. Records maintained off site must be made available upon request of the Indiana department of environmental management, underground storage tank branch.

As noted during inspections on May 9, 2016 and November 29, 2016; Respondent failed to demonstrate financial responsibility for all tanks at the facility.

The Request for Certificate of Financial Assurance for Underground Storage. Tanks form was submitted with the UST notification form on June 29, 2017.

7. In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Agreed Order.

8. During a meeting on June 22, 2017, the Respondent agreed to remove two (2) 4,000 gallon steel USTs. The removal of the USTs will be scheduled to coincide with new UST installation activities. The 8,000 gallon fiberglass UST will remain in temporary closure until the station begins operating.

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. Within thirty (30) days of the Effective Date, Respondent shall comply with 329 IAC 9-7-2(1). Specifically, Respondent shall have all components of the ATG system inspected, tested, and repaired as necessary. Documentation of these activities and certification that the ATG system is functioning properly must be submitted to IDEM.

3. Within four (4) months of the Effective Date, Respondent shall permanently close two (2) 4,000 gallon steel USTs in accordance with the requirements of 329 IAC 9-6-1 through 329 IAC 9-6-4, including the applicable requirements for corrective action under 329 IAC 9-5-1 through 329 IAC 9-5-8.

4. At least thirty (30) days before beginning closure, Respondent shall notify IDEM using the notification form required by 329 IAC 9-2-2(a), and the office of the state fire marshal of intent to close the underground storage tanks.

5. At least seven (7) days prior to scheduled closure activities, Respondent shall notify IDEM’s Underground Storage Tank Section to permit an agent of IDEM to view and inspect the activities performed pursuant to closure of the UST systems.

6. Within thirty (30) days of closing the UST system, Respondent shall submit a closure report to IDEM, which shall include the notification form required by 329 IAC 9-2-2(a).

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

Amy Elliott, Enforcement Case Manager

Office of Land Quality

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

8. Respondent is assessed and agrees to pay a civil penalty of twenty thousand one hundred dollars ($20,100). Said penalty amount shall be due and payable to the Underground Petroleum Storage Tank Trust Fund within thirty (30) days of the Effective Date; the 30^th day being the “Due Date”.

9. 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
Order Paragraph # 3	$200 each week late
Order Paragraph # 4	$200 each week late
Order Paragraph # 7	$500 for late closure report

10. 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.

11. Civil and stipulated 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

12. 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 12, above.

13. 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.

14. 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.

15. 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.

16. 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.

17. 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.

18. 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.

19. 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.

20. 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 8/17/17
				Peggy Dorsey, Assistant Commissioner
				Office of Land Quality