Marathon Pipe line Company,



Case No. 2020-27154-W




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 IC 13-13-1-1.


2.               Marathon Pipe Line Company (Respondent), owns/operates an 8-inch pipeline that transport product within its pipeline system. The pipeline travels near the 9000 block of N Knightsville Crawford Street with specific coordinates 39.520707, latitude and -87.084682 longitude, Knightsville, Clay County, Indiana (the Site).


3.               On April 2, 2019, Respondent reported the release of 4,160 gallons of natural gasoline from an 8-inch products pipeline near milepost 195 in the pipeline right-of-way.  State waters were impacted by the spill including an unnamed tributary of Billy Creek.


4.               IDEM has jurisdiction over the parties and the subject matter of this action pursuant to IC 13-30-3.


5.               Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation (NOV) via Certified Mail/personal service to:


M. E. Peters, President

Registered Agent

Marathon Pipe Line Company

C T Corporation System

539 South Main St.

36 South Pennsylvania Street

Findlay, OH  45875

Suite 700



Kristen Schnipke


Environmental Supervisor


Marathon Pipe Line Company


539 South Main St.


Findlay, OH  45875



6.               During an investigation conducted by a representative of IDEM, violations were found, as described below.


7.               Pursuant to 327 IAC 5-2-2, any discharge of pollutants into waters of the State, as a point source discharge, is prohibited unless in conformity with a valid National Pollutant Discharge Elimination System (NPDES) permit obtained prior to the discharge.


Respondent had an unpermitted discharge of an estimated 4,160 gallons of natural gasoline into an unnamed tributary of Billy Creek, in violation of 327 IAC 5-2-2.


8.               Pursuant to 13-18-4-5, a person may not: (1) throw, run, drain, or otherwise dispose; or (2) cause, permit, or suffer to be thrown, run, drained, allowed to seep, or otherwise disposed; into any of the streams or waters of Indiana any organic or inorganic matter that causes or contributes to a polluted condition of any of the streams or waters of Indiana.


Pursuant to IC 13-30-2-1(1), it is unlawful for any person to discharge, emit, cause or allow any contaminant or waste, including any noxious odor, either alone or in combination with contaminants from other sources in the environment in any form that causes or would cause pollution that violates or would violate rules, standards, or discharge or emission requirements adopted by the appropriate board under the environmental management laws.


Pursuant to 327 IAC 2-1-6(a)(1), all surface waters at all times and at all places, including the mixing zone, shall meet the minimum conditions of being free from substances, materials, floating debris, oil or scum attributable to municipal, industrial, agricultural, and other land use practices or other discharges that do any of the following:


a.       will settle to form putrescent or otherwise objectionable deposits;

b.       are in amounts sufficient to be unsightly or deleterious;

c.       produce color, visible oil sheen, odor, or other conditions in such degree as to create a nuisance;

d.       are in concentrations or combinations that will cause or contribute to the growth of aquatic plants or algae to such degree as to create a nuisance, be unsightly, or otherwise impair the designated uses; and

e.       are in amounts sufficient to be acutely toxic to, or to otherwise severely injure or kill aquatic life, other animals


On April 2, 2019, 4,160 gallons of natural gasoline was released to a tributary of Billy Creek and Billy Creek as a result of a fracture from Respondent’s pipeline.  IDEM documented that the release caused a fish kill causing a violation of 327 IAC 2-1-6, IC 13-18-4-5, and IC 13-30-2-1.


9.            On June 7, 2019, IDEM sent an Information Request Letter to the Respondent seeking information on the spill.  A Response Letter dated August 8, 2019, was received by IDEM with the information requested in the Information Request Letter.


10.        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 adopted by Complainant or Complainant’s delegate (as evidenced by signature), and the adopted Agreed Order has been received by Respondent. This Agreed Order shall have no force or effect until the Effective Date. In addition to addressing the violations cited in Paragraphs 7 through 8 of the Findings of Fact above, this Agreed Order also addresses any additional violations of these same rules that may have occurred subsequent to the issuance of the NOV and prior to the Effective Date.


2.               Respondent shall comply with rules and statutes listed in the findings above at issue.


3.               Respondent is liable to IDEM for the reasonable costs of any response or remedial action taken, under authority of IC 13-24-1-4. IDEM has determined this amount to be Three Thousand Five Hundred Ninety-Six Dollars ($3,596). Said amount shall be due and payable to the “Hazardous Substances Response Trust Fund” within 30 days of the Effective Date; the 30th day being a “Due Date.”


4.               Respondent is assessed and agrees to pay a civil penalty of Thirty Two Thousand Two Hundred Fifty Dollars ($32,250). Said penalty amount shall be due and payable to the “Environmental Management Special Fund” within 30 days of the Effective Date, the 30th day being a “Due Date.”


5.               Civil penalty and response or remedial action costs are payable by check.  Checks shall include the Case Number 2020-27154-W of this action and shall be mailed to:


Indiana Department of Environmental Management

Accounts Receivable

IGCN, Room 1340

100 North Senate Avenue

Indianapolis, Indiana 46204


6.               This Agreed Order shall apply to and be binding upon Respondent, 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 and any accrued interest 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. The interest shall continue to accrue on the first of each month until the civil penalty and any interest accrued are paid in full. Such interest shall be payable to the “Environmental Management Special Fund,” and shall be payable to IDEM in the manner specified 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 permits or any applicable Federal or State law or regulation.


11.           Complainant does not, by his 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 recover compensation for damages to natural resources, obtain penalties or injunctive relief under any applicable Federal or State law or regulation.


13.           Nothing in this Agreed Order shall prevent IDEM (or anyone acting on its behalf) from communicating with the United States Environmental Protection Agency (US 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 US EPA or any other agency or entity.


14.           This Agreed Order shall remain in effect until Respondent has complied with the terms and conditions of this Agreed Order and IDEM issues a Resolution of Case (close out) letter to Respondent.







Department of Environmental Management

Marathon Pipe Line Company


By: __________________________

By: ________________________

Samantha K. Groce, Chief


Water Enforcement Section


Surface Water, Operations &

Printed: _____________________

Enforcement Branch


Office of Water Quality

Title: _______________________



Date: ________________________

Date: _______________________







By: ________________________




Date: ______________________



MANAGEMENT THIS ___________ DAY OF ________________, 20___.



For the Commissioner:



Signed on November 12, 2020


Martha Clark Mettler


Assistant Commissioner


Office of Water Quality