Case No. 2020-26962-U




















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 Indiana Code (“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 Jones Oil Company Inc. (“Respondent”), which owns/operates the facility with an Underground Storage Tank (“UST”) system with Facility ID No. 10148, located at 7320 U.S. Highway 50, in Shoals, Martin County, Indiana (“Site”).


3.         Respondent owns and/or operates (3) ten thousand (10,000) gallon gasoline USTs installed in 1984, and one (1) ten thousand (10,000) gallon and one (1) two thousand (2,000) gallon diesel USTs, each installed in 1979.   Each tank is steel construction.


4.         Owner as defined in IC 13-11-2-150(a)(1)(A) means, for an UST that was in use on November 8, 1984 or brought into use after November 8, 1984 for the storage, use, or dispensing of regulated substances, a person who owns the UST or the real property that is the UST site, or both. According to the Martin County Assessor’s Office, Respondent is the owner of the Site.


5.         A Violation Letter was issued to Respondent on December 4, 2019, which required a response within thirty (30) days of receipt of the Violation Letter. Respondent failed to respond to the Violation Letter.


6.         IDEM has jurisdiction over the parties and the subject matter of this action.


7.            Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation (“NOV”) to:


Jones Oil Company Inc.

Attn: Robert Derek Jones, President and Registered Agent

P.O. Box 60

Shoals, IN 47581


8.            During an investigation including an inspection on November 25, 2019 conducted by a representative of IDEM, the following violations were found:


a.         Pursuant to 329 IAC 9-2-2(c), the owner of a UST system, UST, or tank shall submit a notification form to register the UST system, UST, or tank to the department. An owner required to submit a notification under this section shall provide:

(1)       a notification for each UST owned;

(2)       complete information required on the form for each UST owned; and

(3)       if applicable, a separate notification form for each separate place of operation at which the USTs are located.


As noted during the inspection, Respondent failed to submit a notification to IDEM providing complete information for each UST owned. Specifically, the most recent Notification Form that was submitted to IDEM on November 14, 2016, indicated that both Auto Shutoff Devices and Ball Float Valves are installed. The form also indicated that European Suction piping is utilized for a kerosene tank, but the inspection found only pressurized piping for the USTs. The kerosene tank was above ground and not a UST as indicated. To date, a complete and accurate notification has not been received by IDEM.


On May 7, 2020, a complete and accurate notification form was received by the Respondent.


b.         Pursuant to 329 IAC 9-8-11(a) and (b):

(a)       an owner or operator may satisfy the financial responsibility requirements of section 4 of this rule by participation in the excess liability trust fund under 328 IAC 1. Reimbursement from the fund is determined by compliance with 328 IAC 1.

(b)       An owner or operator of:

(1)         twelve (12) or fewer USTs shall demonstrate the ability to pay the applicable deductible amount under IC 13-23-9-1.3; or

(2)         more than twelve (12) USTs shall demonstrate the ability to pay two (2) times the applicable deductible amount under IC 13-23-9-1.3.


As noted during the inspection, Respondent failed to demonstrate a current Financial Responsibility mechanism.  The Financial Responsibility mechanism provided during the inspection was expired.


On February 25, 2020, a current Financial Responsibility mechanism in the form of a Loan Commitment Letter dated October 15, 2019, was provided to IDEM via email.


c.         Pursuant to 40 CFR 280.21(b)(1)(ii), steel tanks must be upgraded to meet one of the following requirements in accordance with a code of practice developed by a nationally recognized association or independent testing laboratory: (ii) Within 10 years after lining, and every 5 years thereafter, the lined tank is internally inspected and found to be structurally sound with the lining still performing in accordance with the original design specifications. If the internal lining is no longer performing in accordance with the original design specifications and cannot be repaired in accordance with a code of practice developed by a nationally recognized association or independent testing laboratory, then the lined tank must be permanently closed in accordance with subpart G of this part.


As noted during the inspection, Respondent failed to have the lined tanks internally inspected every 5 years.  The most recent inspection of the internal liners occurred on October 17, 2014.


On February 25, 2020, documentation was provided to IDEM via email documenting that tank liner inspections were conducted between 12/02/19-12/04/19.


d.         Pursuant to 40 CFR Part 280.20(c)(1)(i), except as provided in paragraphs (c)(2) and (3) of this section, to prevent spilling and overfilling associated with product transfer to the UST system, owners and operators must use spill prevention equipment that will prevent release of product to the environment when the transfer hose is detached from the fill pipe (for example, a spill catchment basin).


As noted during the inspection, Respondent failed to provide adequate spill prevention equipment.  Specifically, both the Ag Diesel and Diesel spill buckets were more than half full of fuel and would not prevent a release into the environment.


On February 25, 2020, a disposal receipt from 01/07/20 was provided to IDEM via email documenting the disposal of the fuel that had been accumulating in the spill buckets.


e.         Pursuant to 40 CFR 280.43(d), equipment for automatic tank gauging that tests for the loss of product and conducts inventory control must meet the following


(1)       The automatic product level monitor test can detect a 0.2 gallon per hour leak rate from any portion of the tank that routinely contains product;

(2)       The automatic tank gauging equipment must meet the inventory control (or other test of equivalent performance) requirements of § 280.43(a); and

(3)       The test must be performed with the system operating in one of the following modes:

(i)         In-tank static testing conducted at least once every 30 days; or

(ii)        Continuous in-tank leak detection operating on an uninterrupted basis or operating within a process that allows the system to gather incremental measurements to determine the leak status of the tank at least once every 30 days.


As noted during the inspection, Respondent failed to perform proper Automatic Tank Gauging (ATG) as required.  Specifically, the ATG printouts have tank capacity calculations that indicate the ATG system is not programmed properly.


On May 20, 2020, Respondent provided an email from Gary Marquis, representative from Veeder Root, the tank manufacturer, indicating that the ATG system was programmed properly.


9.         Orders of the Commissioner are subject to administrative review by the Office of Environmental Adjudication under IC 4-21.5; however, in recognition of the settlement reached, Respondent acknowledges notice of this right and 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 the rules listed in the findings of fact above.


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


Debbie Chesterson, Enforcement Case Manager

Office of Land Quality

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 Four Thousand Four Hundred Forty Dollars ($4,440).  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 30th day being the “Due Date.”


5.            Civil 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

Accounts Receivable

IGCN, Room 1340

100 North Senate Avenue


6.            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.


7.            Signatories to this Agreed Order certify that they are fully authorized to execute this Agreed Order and legally bind the party they represent.


8.            This Agreed Order shall apply to and be binding upon Respondent and all successors and assigns. Respondent shall provide a copy of this Agreed Order, if in force, to any subsequent owners, successors, or assigns before ownership rights are transferred.


9.            No change in ownership, corporate, or partnership status of Respondent shall in any way alter the Respondent’s status or responsibilities under this Agreed Order.


10.         Respondent shall ensure that all contractors, firms, and other persons performing work under this Agreed Order comply with the terms of this Agreed Order.


11.         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.


12.         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 the obligation to comply with the requirements of any applicable permits or any applicable Federal or State laws or regulations.


13.         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.


14.         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 violations specified in the NOV.


15.         Nothing in this Agreed Order shall prevent IDEM or anyone acting on its behalf from communicating with the U.S. Environmental Protection Agency (U.S. 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 U.S. EPA or any other agency or entity.


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




Department of Environmental Management

Southern Indiana Development Partners, LLC



By: _________________________

By:  _________________________


Jennifer Reno, Section Chief



Enforcement Section

Printed: ______________________

Office of Land Quality



Title: ________________________



Date: __

Date: _______________________












By: ________________________







Date: ______________________










For the Commissioner:




Signed on 09/02/20


Peggy Dorsey, Assistant Commissioner


Office of Land Quality