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. 2017-24361-U
					)
golden petroleum, llc,					)
JIT REAL ESTATE INVESTMENT, INC,					)
HERDRICH PETROLEUM CORP.,					)
					)
Respondent.					)

AGREED ORDER

Complainant and Respondents 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. Respondents’ entry into this Agreed Order shall not constitute a waiver of any defense, legal or equitable, which Respondents 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. Respondents are Golden Petroleum, LLC, JIT Real Estate Investment, Inc., and Herdrich Petroleum Corp. (“Respondents”), which own and/or operate the facility with Facility ID No. 16352, located at 1313 N State Street, in Greenfield, Hancock County, Indiana (“Site”).

3. The Site has UST systems with three (3) 10,000 gallon stiP3 steel tanks and one (1) 6,000 gallon stiP3 steel tank that were installed on or about November 15, 1988.

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 Balwinder Singh, Registered Agent for Golden Petroleum, LLC and JIT Real Estate Investment, Inc., and William Herdrich, Registered Agent for Herdrich Petroleum Corp.

6. During an investigation including an inspection on May 25, 2016 conducted by a representative of IDEM, the following violations were found:

a. Pursuant to 329 Indiana Administrative Code (“IAC”) 9-3-1(d), the owner and operator of an UST system shall maintain records required at the UST site and immediately available for inspection by the agency or a readily available alternative site and be provided for inspection to the agency upon request.

As noted in the inspection report from the inspection on May 25, 2016, Respondents did not maintain records required at the Site or provide records required to the agency upon request.

b. Pursuant to 329 IAC 9-3.1-2(1) and (2), 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 a galvanic 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 “Corrosion Control of Underground Storage Tank Systems by Cathodic Protection”, revised 1995 NACE International, PO Box 218340, Houston, Texas 77218-8340.

As noted in the inspection report from an inspection on May 25, 2016, Respondents failed to provide corrosion protection for the steel UST system at the Site. Specifically, there were no records available concerning corrosion protection testing for the tanks or piping.

c. Pursuant to 329 IAC 9-7-2(1), the owner and operator of a petroleum UST system shall provide release detection for tanks 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 in the inspection report from an inspection on May 25, 2016, Respondents failed to perform an appropriate method of monthly release detection for the UST system at the Site. Specifically, Respondents did not have records for release detection for the USTs while each UST contained nine (9) or more inches of fuel.

d. Pursuant to 329 IAC 9-7-2(2), the owner and operator of a petroleum UST system shall provide release detection for piping as follows: underground piping that routinely contains regulated substances must be monitored for releases in a manner that meets on (1) of the requirements listed in section 2(A) through 2(B) of 329 IAC 9-7.

The investigation determined Respondents did not show any records to demonstrate Respondents were providing release detection for the piping at the facility.

7. Respondents submitted documentation on March 29, 2018 that shows Cathodic Protection testing was most recently done on May 30, 2017 and July 10, 2013.

8. Respondents submitted documentation on March 29, 2018 that show Release Detection was being conducted through an Automatic Tank Gauging system the last twelve (12) months, but some of the data shows that “No Results Available” for some of the tanks over the time period when the tanks were low on fuel. On April 9, 2018, Respondents submitted Release Detection results for March and April of 2018 indicating passing results for all tanks.

9. On March 29, 2018, Respondents submitted passing results from Line Tightness tests and Tank Tightness tests for each tank conducted on June 8, 2017.

10. In recognition of the settlement reached, Respondents waive 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 Respondents. This Agreed Order shall have no force or effect until the Effective Date.

2. Within thirty (30) days of the Effective Date, if not already completed by Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC in the past six months then Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC shall comply with 329 IAC 9-2-2. Specifically, if Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC have not already submitted to IDEM within the past six months a corrected copy the Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC shall fill out and submit to IDEM a corrected and complete copy of State Form 45223, Notification for Underground Storage Tanks Form.

3. Within thirty (30) days of the Effective Date, Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC shall start submitting to IDEM the first of six (6) months of the UST system release detection test results to IDEM. If results of the Automatic Tank Gauging System show results are not passing or “No Results Available” a different method of release detection is required to be performed, such as a tank tightness test. According to 327 IAC 9-7-4(2)(E)(iii), tanks of greater than two thousand (2,000) gallons nominal capacity must not use manual tank gauging to meet the requirement of release detection.

4. If Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC cannot comply with the requirements of Order paragraph three (3), then Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC shall comply with the requirements of Order paragraphs five (5) through eight (8).

5. Within sixty (60) days of the Effective Date, Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC shall permanently close the underground storage tanks 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.

6. At least thirty (30) days before beginning closure, Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC 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.

7. Within thirty (30) days of closing the UST system, Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC shall submit a closure report to IDEM, which shall include the notification form required by 329 IAC 9-2-2(a).

8. All submittals required by this Agreed Order, unless Respondents are notified otherwise in writing by IDEM, shall be sent to:

Trent Lindley, Enforcement Case Manager

Office of Land Quality

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

9. Respondents are assessed and agree to pay a civil penalty of Twenty-five Thousand Dollars ($25,000.00). Respondents are jointly and severally liable for all civil penalty assessments, including stipulated penalties. Said penalty amount shall be due and payable to the Underground Petroleum Storage Tank Trust Fund in four (4) installments. The first installment of Six Thousand Two Hundred Fifty Dollars ($6,250.00) shall be paid within ninety (90) days of the Effective Date; the 90^th day being the “Due Date”. Subsequent installments of Six Thousand Two Hundred Fifty Dollars ($6,250.00) shall be paid within one hundred and eighty (180) days of the Effective Date, two hundred and seventy (270) days of the Effective Date, and three hundred and sixty (360) days of the Effective Date.

10. In the event the terms and conditions of the following paragraphs are violated, Complainant may assess and Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC shall pay a stipulated penalty in the following amount:

Paragraph	Penalty
Order Paragraph # 2	$100 each week late
Order Paragraph # 3	$250 each week late
Order Paragraph # 4	$250 each week late
Order Paragraph # 5	$500 for late closure
Order Paragraph # 6	$100 for not notifying UST Section
Order Paragraph # 7	$250 each week late

11. Stipulated penalties shall be due and payable no later than the 30^th day after Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC receive written notice that Complainant has determined a stipulated penalty is due; the 30^th day being the “Due Date”. Complainant may notify Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC at any time that stipulated penalty is due. Failure to notify Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC 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 Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC for violation of this Agreed Order. Neither assessment nor payment of stipulated penalties shall preclude Complainant from seeking additional relief against Respondents JIT Real Estate Investment, Inc. and Golden Petroleum, LLC for a violation of this Agreed Order; law, including, but not limited to, civil penalties pursuant to IC 13-30-4.

12. 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

13. In the event that the monies due to IDEM pursuant to this Agreed Order are not paid on or before their Due Date, Respondents 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.

14. This Agreed Order shall jointly and severally apply to and be binding upon Respondents and their successors and assigns. Respondents’ 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 Respondents shall in any way alter their status or responsibilities under this Agreed Order.

15. 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.

16. Respondents shall provide a copy of this Agreed Order, if in force, to any subsequent owners or successors before ownership rights are transferred. Respondents shall ensure that all contractors, firms and other persons performing work under this Agreed Order comply with the terms of this Agreed Order.

17. 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 Respondents pursuant to this Agreed Order, shall not in any way relieve Respondents of their obligation to comply with the requirements of its applicable permits or any applicable Federal or State law or regulation.

18. Complainant does not, by its approval of this Agreed Order, warrant or aver in any manner that Respondents’ 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 Respondents may incur as a result of Respondents’ efforts to comply with this Agreed Order.

19. 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.

20. 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 Respondents may incur as a result of such communications with the EPA or any other agency or entity.

21. This Agreed Order shall remain in effect until IDEM issues a Resolution of Case letter to Respondents.

TECHNICAL RECOMMENDATION:				RESPONDENT:
Department of Environmental Management
By: _________________________				By: _________________________
	Nancy Johnston, Section Chief
	Enforcement Section			Printed: ______________________
Office of Land Quality
				Title: ________________________
Date: __________________				Date: _______________________
RESPONDENT:				RESPONDENT:
By: _________________________				By: _________________________
Printed: ______________________				Printed: ______________________
Title: ________________________				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 on August 7, 2018
				Peggy Dorsey, Assistant Commissioner
				Office of Land Quality