STATE OF INDIANA ) BEFORE THE INDIANA DEPARTMENT

) SS: OF ENVIRONMENTAL MANAGEMENT

COUNTY OF MARION )

COMMISSIONER OF THE DEPARTMENT )

OF ENVIRONMENTAL MANAGEMENT, )
)
Complainant, )
)
v. ) Cause No. A-3752 or 1996-2646-A
)
ELI LILLY AND COMPANY, )
)
Respondent. )

AGREED ORDER

The Complainant and the 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. I. FINDINGS OF FACT 1. Complainant is the Commissioner (hereinafter referred to as "Complainant") of the Indiana Department of Environmental Management, a department of the State of Indiana created by IC 13-13-1-1.

2. Respondent is Eli Lilly and Company ("Respondent"), who owns and operates the manufacturing, research and development facility located at 1650 Lilly Road in Shadeland, Indiana.

3. The Indiana Department of Environmental Management (AIDEM@) 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 via Certified Mail to:

Rebecca O. Gross, Registered Agent                 Lisa Dimond
Eli Lilly and Company                                         Environmental Services
Lilly Corporate Center                                         Eli Lilly and Company
Indianapolis, IN 46285                                     Tippecanoe Laboratories
PO Box 685                                                    Lafayette, IN 47902

5. Rule 326 5-1-2(1)(A) provides, in part, that visible emissions from a source or facility located in an attainment area for particulate matter shall not exceed an average of forty percent (40%) opacity in twenty-four (24) consecutive readings.

6. On September 17, 1996, a representative of IDEM conducted a visible emissions evaluation for emissions from coal boiler No. 3 at Eli Lilly and Company's Tippecanoe Laboratories, located at 1650 Lilly Road in Shadeland, Indiana. During this evaluation, the inspector observed visible emissions from boiler No. 3 which exceeded the allowable opacity limit of 40%. Specifically, the average opacity for one six minute period, or for twenty-four (24) consecutive readings, was determined to be 60%, an alleged violation 326 IAC 5-1-2(1)(A).

7. Respondent has determined that the primary cause of the opacity problem was a buildup of scale on the inlet vanes to the induced draft (ID) fan. Respondent has added routine cleaning of these vanes to the preventive maintenance plans for all three coal-fired boilers.

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

9. In accordance with IC 13-30-3-3(c), the execution of this Agreed Order by the Respondent does not constitute an admission of liability for the violation alleged in this action.

II. ORDER 1. This Agreed Order shall be effective ("Effective Date") when it is approved by the Complainant or his delegate, and has been received by the Respondent. This Agreed Order shall have no force or effect until the Effective Date.

2. In full settlement of this action Respondent is assessed a civil penalty of Three Thousand Five Hundred Dollars ($3500). Said penalty amount shall be due and payable to the Environmental Management Special Fund within thirty (30) days of the Effective Date of this Agreed Order.

3. The civil penalty is payable by check to the Environmental Management Special Fund. Checks shall include the Cause Number of this action and shall be mailed to:

Cashier
Indiana Department of Environmental Management
100 N. Senate Avenue
P. O. Box 7060
Indianapolis, IN 46207-7060

4. In the event that the civil penalty required by Order paragraph 2 is not paid within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1-101. The interest shall continue to accrue until the civil penalty is paid in full.

5. This Agreed Order shall apply to and be binding upon the Respondent, its successors and assigns. The Respondent's signatories to this Agreed Order certify that they are fully authorized to execute this document and legally bind the parties they represent. No change in ownership, corporate, or partnership status of the Respondent shall in any way alter its status or responsibilities under this Agreed Order.

6. In the event that any terms of the 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 the Agreed Order did not contain the invalid terms.

7. The 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.

8. This Agreed Order shall remain in effect until the Respondent has complies with all terms and conditions of this Agreed Order.

TECHNICAL RECOMMENDATION: RESPONDENT: Department of Environmental Management By: _________________________ By: _________________________
Patrick Carroll
Chief,
Office of Enforcement Printed: ______________________ Title: ________________________ Date: ________________________ Date: ________________________

COUNSEL FOR COMPLAINANT: COUNSEL FOR RESPONDENT:

Department of Environmental Management

By: _________________________ By: ________________________

Office of Legal Counsel

Date: _______________________ Date: ______________________

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS _____ DAY OF ____________________, 20__.

For the Commissioner:

Signed 3/24/97

Patrick Carroll
Director
Office of Enforcement