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-3808 or 1997-2708-A

)
PRECISION PLASTICS, INC., )
)

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 (AComplainant@) of the Indiana Department of Environmental Management, a department of the State of Indiana created by IC 13-13-1-1.

2. Respondent is Precision Plastics, Inc. (hereinafter referred to as "Respondent"), who owns and operates surface coating facilities at 1001 East College Street, located in Crawfordsville, 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, on [date AC signed NOV] IDEM issued a Notice of Violation via Certified Mail to:

Mr. Frank Lessen, President
Precision Plastics, Inc.
1001 East College Street,
Crawfordsville, IN 47933
5. Rule 326 IAC 8-1-6 requires that "New facilities (as of January 1, 1980), which have potential emissions of 22.7 megagrams (25 tons) per year, located anywhere in the state, which are not otherwise regulated.shall reduce VOC emissions using best available control technology (BACT)".

6. Pursuant to 326 IAC 8-1-1(b), in order to be exempted from the applicability of the rule 326 IAC 8-1-6, an enforceable State Operating Permit #54004-92-0133 was issued to Respondent on September 20, 1988. Condition #5 thereof, requires that "total emissions of volatile organic compounds from the five (5) new booths.shall be less than two (2) tons per month (24 tons per year)". During the period from April, 1996 through September, 1996, VOC emissions from Respondent's source exceeded two (2) tons per month, as follows from Respondent's reports from July 22, 1996 and October 21, 1996. These activities constitute violations of the rule 326 IAC 8-1-6 and the State Operating Permit condition #5.

7. In recognition of the settlement reached, Respondent waives 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 the Complainant or her delegate, and has been received by the Respondent. This Agreed Order shall have no force or effect until the Effective Date.

2. Respondent shall return to compliance with the State Operating Permit #54004-92-0133 condition #5 through permanent restriction of one (1) or more affected facility activities that result in VOC emissions, such as lower VOC content coatings, production, and/or hours of operation, and/or capacity utilization, such that restrictions lower actual emissions before add-on controls to a level below two (2) tons per month on the effective date of this Agreed Order.

3. If they so choose, Respondent may apply for a new permit or a permit amendment or modification, pursuant to 326 IAC 2, in order to waive the aforementioned condition #5. In this case Respondent shall comply with all the requirements of the existing enforceable State Operating Permit #54004-92-0133, including condition #5 until such date when the new permit or permit amendment or modification is issued to Respondent.

4. During the period when this Agreed Order remains in effect if another violation of the State Operating Permit #54004-92-0133 condition #5, and consequently of Rule 326 IAC 8-1-6 occurs, Respondent shall submit a construction permit amendment application, include a Best Available Control Technology (BACT) analysis, and shall request an incorporation of the BACT into their operating permit. The aforementioned amendment application shall be submitted within sixty (60) days from the notification by Complainant that another violation was discovered.

5. In the event the terms and conditions of the following paragraphs are violated, the Complainant may assess and the Respondent shall pay a stipulated penalty in the following amount:

Violation Penalty

1) Failure to comply with the two (2)         Seven Thousand Five Hundred
tons per month limit specified by             Dollars ($7,500.00) for the
condition 5 of the State Operating             first violation, and Ten Thousand
Permit #54004-92-0133.                                 Dollars ($10,000.00) per violation
                                                                        for subsequent violations.

2)Failure to submit a construction             Two Hundred and Fifty Dollars
permit amendment application                     ($250.00) per each day of
including BACT analysis within                 violation.
sixty (60) days of notification as
required by paragraph 4 of the Order
section of this Agreed Order.

6. Stipulated penalties shall be due and payable within thirty (30) days after Respondent receives written notice that the Complainant has determined a stipulated penalty is due. Assessment and payment of stipulated penalties shall not preclude the Complainant from seeking any additional relief against the Respondent for violation of the Agreed Order. In lieu of any of the stipulated penalties given above, the Complainant may seek any other remedies or sanctions available by virtue of Respondent=s violation of this Agreed Order or Indiana law, including, but not limited to, civil penalties pursuant to IC 13-30-4.

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

                                        Mr. Mike Stonik, Enforcement Case Manager
                                        Office of Enforcement
                                        Indiana Department of Environmental Management
                                        100 N. Senate Avenue
                                        P. O. Box 6015
                                        Indianapolis, IN 46206-6015 8. Respondent is assessed a civil penalty of Twenty One Thousand Dollars ($21,000.00). Said penalty amount shall be due and payable to the Environmental Management Special Fund in four (4) equal installments of Five Thousand Two Hundred and Fifty Dollars ($5,250.00) each. First installment shall be paid within thirty (30) days of the Effective Date of this Agreed Order. The three subsequent remaining installment payments shall be made by the last day of the three consecutive calendar quarters, starting next quarter after the Effective Date of this Agreed Order, until the entire Civil Penalty amount is paid in full.

9. Civil and stipulated 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:

                                        Cashier
                                        Indiana Department of Environmental Management
                                        100 N. Senate Avenue
                                        P. O. Box 7060
                                        Indianapolis, IN 46207-7060 10. In the event that the civil penalty installment payments required by paragraph 8 of the Order section of this Agreed Order is not paid within thirty (30) days of the Effective Date of this Agreed Order and on the last day of each of the three (3) subsequent consecutive calendar quarter, or the stipulated penalties listed in paragraph 5 of the Order section of this Agreed Order are not paid within thirty (30) days after Respondent received a written notice the stipulated penalty is due, 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.

11. This Agreed Order shall apply to and be binding upon the Respondent, its officers, directors, principals, agents, successors and assigns. The Respondent's signatories to this Agreed Order certify that they are fully authorized to execute 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.

12. 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.

13. 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.

14. This Agreed Order shall remain in effect for a period of two years or until such time when a permit amendment is issued to Respondent which require compliance with rule 326 IAC 8-1-6 for the facilities currently affected by condition #5 of the State Construction Permit #54004-92-0133, whichever is sooner.

TECHNICAL RECOMMENDATION: RESPONDENT:

Department of Environmental Management

By: _________________________ By: _________________________

Patrick Carroll
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 ____________________, 1997.

For the Commissioner:

Signed 7/23/97

___________________________

John M. Hamilton

Commissioner