Case No. 2018-25267-A





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.




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 Countrymark Refining and Logistics, LLC (“Respondent”), which owns and operates the stationary petroleum refinery with Plant ID No. 129-00003, located at 1200 Refinery Road, in Mt. Vernon, Posey 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”) via Certified Mail to:

Charles Smith, President & Registered Agent

Countrymark Refining and Logistics, LLC

225 S. East Street, Suite 144

Indianapolis, IN 46202


5.             During an conducted by a representative of IDEM, the following violations were found:


a.       Pursuant to 40 CFR 60.693-3(f), Each oil-water separator tank, slop oil tank, storage vessel, or other auxiliary equipment that is required to comply with paragraph (a) of this section, and not paragraph (b) of this section, may be equipped with a pressure control valve as necessary for proper system operation. The pressure control valve shall be set at the maximum pressure necessary for proper system operation, but such that the value will not vent continuously.

Respondent failed to maintain pressure control valve internals on Tank 6 from 2014 through 2018, in violation of 40 CFR 60.693-3(f).

b.       Pursuant to 40 CFR 60.693-2(a)(2), except as provided in paragraph (a)(4) of this section, each opening in the oil-water separator roof shall be equipped with a gasketed cover, seal, or lid, which shall be maintained in a closed position at all times, except during inspection and maintenance.

Respondent was observed leaving three (3) lids open on May 30, 2018, when not performing inspections or maintenance, in violation of 40 CFR 693-2(a)(2).

c.        Pursuant to 40 CFR 60.693-2(a)(3), the oil-water separator roof shall be floating on the liquid (i.e., off the roof supports) at all times except during abnormal conditions (i.e., low flow rate).

Respondent was observed having three floating roofs leaving air gaps above the liquid and/or partially submerged under water on May 30, 2018, in violation of 40 CFR 60.693-2(a)(3).


d.       Pursuant to 40 CFR 60.696(d), After installing the control equipment required to meet §60.693-2(a) or whenever sources that have ceased to treat refinery wastewater for a period of 1 year or more are placed back into service, the owner or operator shall determine compliance with the standards in §60.693-2(a):

Pursuant to 40 CFR 60.696(d)(2) The gap widths and total gap area shall be determined using the procedure in paragraph (d)(1) of this section according to the following frequency:
(i) For primary seals, once every 5 years.
(ii) For secondary seals, once every year.

Respondent had not conducted the gap width and total gap area checks once every 5 years for primary seals or annually for secondary seals, in violation of 40 CFR 60.696(d)(2).


6.             Respondent installed internals to the pressure control valve on Tank 6 on June 18, 2018.

7.             Respondent modified its inspection procedure and trained employees to observe the status of the lids.

8.             Respondent re-leveled the floating roofs on August 20, 2018 to float on the surface of the liquid until replacement roofs could be installed.


9.             Respondent replaced the floating roofs on December 3, 2018.  Gap width and total gap area tests for the new roofs were conducted on December 6, 2018.

10.          In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Agreed 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 Part 70 Permit 129-39047-00003 unless superseded by a permit modification or renewal.


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


Matthew Chaifetz, Senior Enforcement Manager

Compliance and Enforcement Branch – Mail Code 61-53

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251


4.             Respondent is assessed and agrees to pay a civil penalty of Thirty-Two Thousand One Hundred Eighty-Seven Dollars and Fifty Cents ($32,187.50).  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”.



5.             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:


IDEM Office of Legal Counsel

IGCN, Rm  N1307

100 N Senate Ave

Indianapolis, IN  46204


6.             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.


7.             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 5, above.


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 permit 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.






Department of Environmental Management


Countrymark Refining and Logistics, LLC










David P. McIver, Chief





Enforcement Section





Office of Air Quality
























































, 2019.



For the Commissioner




Signed on February 8, 2019


Matthew Stuckey, Deputy Assistant Commissioner


Office of Air Quality


Indiana Department of Environmental Management