STATE OF INDIANA

)

SS:

BEFORE THE INDIANA DEPARTMENT OF

 

)

 

 

COUNTY OF MARION

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ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT

)

 

OF ENVIRONMENTAL MANAGEMENT,

 

)

 

 

 

)

 

Complainant,

 

)

 

 

 

)

 

 

v.

 

)

Case No. 2020-27168-U

 

 

)

 

gsd petroleum llc and S singh inc.,

 

)

 

 

 

)

 

Respondents.

 

)

 

 

AGREED ORDER

 

Complainant and Respondents 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. Respondents’ entry into this Agreed Order shall not constitute a waiver of any defense, legal or equitable, which Respondents may have in any future administrative or judicial proceeding, except a proceeding to enforce this order.

 

I.  FINDINGS OF FACT

 

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 GSD Petroleum LLC owns the Underground Storage Tank (“UST”) systems with UST Facility ID #4899, located at 7305 SR 60, parcel #10-17-08-700-361.000-031, in Sellersburg, Clark County, Indiana (the “Site”).

 

3.            Respondent S Singh Inc. operates the UST systems located at the Site.

 

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

 

5.         Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation (NOV) via United States Postal Service to:

 

GSD Petroleum LLC, Property and UST Owner

c/o Gurpal Dhaliwal, Member

g.dhaliwal79@gmail.com

9635 N. Granville Road

Mequon, Wisconsin 53097

 

CT Corporation, Registered Agent for

GSD Petroleum LLC

150 West Market Street, Suite 800

Indianapolis, Indiana 46204

 

S Singh Inc., UST Operator

c/o Sukhjeet Singh, President and Registered Agent

Ssinghinc21@gmail.com

7305 Apple Leaf Lane

Sellersburg, Indiana 47172

 

6.         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 Clark County Assessor’s Office, Respondent GSD Petroleum LLC is the owner of the USTs and property at the Site.

 

7.         During an investigation including an inspection on November 20, 2019 conducted by a representative of IDEM, the following violations were found:

 

a.         Pursuant to 329 Indiana Administrative Code (“IAC”) 9-2-2(c), 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, the UST operator entity has been administratively dissolved per the Indiana Secretary of State. An updated notification form has not been received to date.

 

b.         Pursuant to 329 IAC 9-8-11(a) and (b), 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, documentation of financial responsibility in accordance with 329 IAC 9-8-4 has not been submitted.

 

c.            Pursuant to 329 IAC 9-1-1 and 40 Code of Federal Regulations (“CFR”) 280.41(a)(1), tanks installed on or before December 26, 2018 must be monitored for releases at least every 30 days using one of the methods listed in § 280.43(d) through (i).

 

As noted during the inspection, Respondents use SIR as the release detection method, but were unable to provide twelve months of records.

 

Tank tightness test results dated December 7, 2020 submitted.

 

d.            Pursuant to 329 IAC 9-1-1 and 40 CFR 280.41(b)(1)(i)(A), pressurized underground piping installed on or before December 26, 2018 that routinely contains regulated substances must be equipped with an automatic leak detector conducted in accordance with § 280.44(a).

 

As noted during the inspection, records of automatic line leak detector test results were not available.

 

Leak detection test result dated December 7, 2020 submitted.

 

e.            Pursuant to 329 IAC 9-1-1 and 40 CFR 280.41(b)(1)(i)(B), pressurized underground piping installed on or before December 26, 2018 that routinely contains regulated substances must have an annual line tightness test conducted in accordance with § 280.44(b) or have monthly monitoring conducted in accordance with § 280.44(c).

 

As noted during the inspection, the test results required under 329 IAC 9-1-1 and 40 CFR 280.41(b)(1)(i)(B) were not available.

 

Line tightness test result dated December 7, 2020 submitted.

 

f.          Pursuant to 40 CFR 280.31(b), all UST systems equipped with cathodic protection systems must be inspected for proper operation by a qualified cathodic protection tested in accordance with the following requirements:

 

(1)       Frequency. All cathodic protection systems must be tested within 6 months of installation and at least every 3 years thereafter or according to another reasonable time frame established by the implementing agency; and

(2)       Inspection criteria. The criteria that are used to determine that cathodic protection is adequate as required by this section must be in accordance with a code of practice developed by a nationally recognized association.

 

As noted during the inspection, corrosion protection test results were not available for the USTs and the steel piping located at the dispensers. The steel piping was in direct contact with the soil/ground and has cathodic protection equipment installed (exception of dispenser #5/6).

 

g.         Pursuant to 40 CFR 280.20(b), the piping that routinely contains regulated substances and in in contact with the ground must be properly designed, constructed, and protected from corrosion in accordance with a code of practice developed by a nationally recognized association or independent testing laboratory.

 

As noted during the inspection, the STP risers for the diesel and regular USTs have metal components that regularly contain fuel in direct contact with the soil/ground without apparent corrosion protection. In addition, dispenser #5/6 has steel piping in contact with the soil/ground without corrosion protection equipment installed.

 

h.         Pursuant to 40 CFR 280.20(c)(1)(i), to prevent spilling and overfilling associated with product transfer to the UST system, owners and operators must use the following spill and overfill prevention equipment:

 

(i)         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, the spill bucket on the main regular gasoline UST was damaged such that it will not prevent release of product to the environment.

 

8.         Respondents informed IDEM that a new installation at the site will take place but due to manufacturing and shipping delays the date is unknown.

 

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, Respondents acknowledge notice of this right and waive 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 Complainant or Complainant’s delegate and has been received by Respondents. This Agreed Order shall have no force or effect until the Effective Date.

 

2.            Respondents shall comply with the rules listed in the findings above.

 

3.            Within thirty (30) days of the Effective Date, Respondents shall comply with 329 IAC 9-6-2.1(a). Specifically, Respondents shall download and submit the “Thirty (30) Day Notification of Intent to Close,” State Form 56553 from IDEM webpage: https://www.in.gov/idem/5157.htm, under “Underground Storage Tank (UST) Program.” This is for the old UST systems. Once downloaded the form may be completed on-line or by hand and emailed to USTRegistration@idem.in.gov. The completed form will not be accepted by mail.

 

4.            Within sixty (60) days of submitting the “Thirty (30) Day Notification of Intent to Close”, Respondents shall have a person certified by the Indiana Department of Homeland Security for decommissioning USTs, perform a permanent closure by removal of the UST systems at the Site in accordance with 329 IAC 9-6.

 

5.            Within thirty (30) days of the new installation, Respondents shall comply with 329 IAC 9-2-2(c). Specifically, Respondents shall download and submit the “Notification Form for Underground Storage Tanks,” State Form from IDEM webpage: https://www.in.gov/idem/5157.htm, under “Underground Storage Tank (UST) Program.”  Once downloaded the form may be completed on-line or by hand and emailed to USTRegistration@idem.in.gov.  The completed form will not be accepted by mail.

 

6.            Within thirty (30) days of the Effective Date, Respondents shall comply with 329 IAC 9-8-11(a) and (b) or otherwise comply with 329 IAC 9-8-4. Specifically, Respondents shall submit documentation of the instrument showing the required coverage.

 

7.            If UST system closure is not completed by the end of December 2021, then Respondents shall comply with 40 CFR 280.31(b). Specifically, Respondents shall have the four (4) USTs and flex connectors at the dispensers fully inspected by a qualified cathodic protection tester and submit the results and reports to IDEM no later than January 31, 2022.

 

8.            If UST system closure not completed by the end of December 2021, then Respondents shall comply with 40 CFR 280.20(b). Specifically, Respondents shall contract with a certified contractor to determine if the piping or metal components in contact with the ground at the STPs and beneath dispenser #5/6 are substandard and what steps will be taken to provide corrosion protection and submit documentation of the repairs completed to IDEM no later than January 31, 2022.

 

9.            If UST system closure not completed by the end of December 2021, then Respondents shall comply with 40 CFR 280.20(c)(1)(i). Specifically, Respondents shall repair the spill bucket on the main regular gasoline UST and submit written and photographic documentation of repairs made no later than January 31, 2022.

 

10.       All submittals required by this Agreed Order, unless Respondents are notified otherwise in writing by IDEM, shall be sent to:

 

Jodi Pisula, Enforcement Case Manager

Office of Land Quality

Indiana Department of Environmental Management

100 North Senate Avenue

Indianapolis, IN 46204-2251

 

11.       Respondents are assessed and agree to pay a civil penalty of Thirty-Eight Thousand Seven Hundred Dollars ($38,700). Said penalty amount shall be due and payable to the “Underground Petroleum Storage Tank Trust Fund” in twelve (12) installments of Three Thousand Two Hundred Twenty-Five Dollars ($3,225.00). The first installment shall be paid within thirty (30) days of the Effective Date; the 30th day being the “Due Date”. Remaining installment payments shall be made every thirty (30) days thereafter. Interest shall be accrued on unpaid amounts at the rate established by IC 24-4.6-1-101.

 

12.       In the event that Respondents do not complete the closure and new installation by the end of 2021, the full civil penalty of Sixty-One Thousand Four Hundred Dollars ($61,400), plus interest established by IC 24-4.6-1-101 on the remaining amount, less the portion of the civil penalty Respondents have already paid, will be due within fifteen (15) days from Respondents’ receipt of IDEM’s notice to pay. Interest, at the rate established by IC 24-4.6-1-101, shall be calculated on the amount due from the date which is thirty (30) days after the Effective Date of this Agreed Order until the full civil penalty is paid.

 

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

 

Paragraph

Penalty

Order paragraph #3

$100.00 per week

Order paragraph #4

$100.00 per week

Order paragraph #5

$100.00 per week

Order paragraph #6

$100.00 per week

Order paragraph #7

$100.00 per week

Order paragraph #8

$100.00 per week

Order paragraph #9

$100.00 per week

 

14.       Stipulated penalties shall be due and payable no later than the thirtieth day after Respondents receive written notice that Complainant has determined a stipulated penalty is due; the thirtieth day being the “Due Date.” Complainant may notify Respondents at any time that a stipulated penalty is due. Failure to notify Respondents in writing in a timely manner of a stipulated penalty assessment shall not waive Complainant’s right to collect such stipulated penalty or preclude Complainant from seeking additional relief against Respondents for violation of this Agreed Order. Neither assessment nor payment of stipulated penalties shall preclude Complainant from seeking additional relief against Respondents for a violation of this Agreed Order; such additional relief includes any remedies or sanctions available pursuant to Indiana law, including, but not limited to, civil penalties pursuant to IC 13-30-4. Respondents are jointly and severally liable for all stipulated penalty assessments.

 

15.       Civil and stipulated 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

Indianapolis, IN 46204

 

16.       In the event that the monies due to IDEM pursuant to this Agreed Order are not paid on or before their Due Date, Respondents 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 Respondents pay any unpaid balance. Such interest shall be payable to the “Underground Petroleum Storage Tank Trust Fund,” and shall be payable to IDEM in the manner specified in Paragraph 15, above.

 

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

 

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

 

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

 

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

 

21.       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.

 

22.       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 Respondents pursuant to this Agreed Order, shall not in any way relieve Respondents of the obligation to comply with the requirements of any applicable permits or any applicable Federal or State laws or regulations.

 

23.       Complainant does not, by its approval of this Agreed Order, warrant or aver in any manner that Respondents’ 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 Respondents may incur as a result of Respondents’ efforts to comply with this Agreed Order.

 

24.       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.

 

25.       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 Respondents may incur as a result of such communications with the U.S. EPA or any other agency or entity.

 

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

 

TECHNICAL RECOMMENDATION:

RESPONDENT:

Department of Environmental Management

GSD Petroleum LLC

 

 

 

 

By: _________________________

By:  _________________________

 

Jennifer Reno, Section Chief

 

 

Enforcement Section

 

 

Office of Land Quality

 

 

 

Printed: ______________________

 

 

 

 

 

Title: ________________________

 

 

 

 

Date: __________________

Date: _______________________

 

 

 

 

 

RESPONDENT:

 

 S Singh Inc.

 

 

 

 

 

By:  _________________________

 

 

 

 

 

 

 

Printed: ______________________

 

 

 

 

 

Title: ________________________

 

 

 

 

 

COUNSEL FOR RESPONDENT:

 

 

 

 

By:  _________________________

 

 

 

 

 

Printed: ______________________

 

 

 

 

 

Title: ________________________

 

 

 

 

Date: __________________

 

 

 

 

 

COUNSEL FOR RESPONDENT:

 

 

 

 

By:  _________________________

 

 

 

 

 

Printed: ______________________

 

 

 

 

 

Title: ________________________

 

 

 

 

 

Date: __________________

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

______

DAY OF

_______________, 20_____.

 

 

For the Commissioner:

 

 

Signed 11/4/21

 

Peggy Dorsey, Assistant Commissioner

 

Office of Land Quality