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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. 1997-2759-A or A-3855
                            )CAUSE NO. 1999-3588-A or A-4591
STEEL DYNAMICS, 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. Pursuant to IC 13-30-3-3, entry into the terms of this Agreed Order does not constitute an admission of any violation contained herein or in the Notices of Violation issued on May 23, 1997 and September 14, 1999.

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 Steel Dynamics, Inc. (hereinafter referred to as "Respondent"), which owns and operates the steel mill located at 4500 County Road 59, in Butler, Indiana.

    3.    The Indiana Department of Environmental Management ("IDEM") has jurisdiction over the parties and subject matter of this action.

    4.    Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation, via Certified Mail, on May 23, 1997, to:

            Keith Busse, President and Registered Agent
            Steel Dynamics, Inc.
            4500 County Road 59
            Butler, IN 46721
    
    5.    Pursuant to construction permit No. 033-3692, operation condition No. 13, sulfur dioxide (SO2) emissions from the EAF baghouse shall be limited to 0.20 pounds per ton of steel produced.

          On July 17, 1996, Steel Dynamics, Inc., located at 4500 County Road 59, in Butler, Indiana, conducted emissions tests at the common baghouse outlet (SO1). During these tests, SO2 emissions were 1.55 pounds of SO2 per ton of steel produced, a violation of construction permit No. 033-3692, operation condition No. 13.

    7.    On September 19 and 20, 1996, this source retested at the common baghouse outlet (SO1). During these tests, SO2 emissions were 0.356 pounds of SO2 per ton of steel produced, a violation of construction permit No. 033-3692, operation condition No. 13.

    8.    On August 5, 1997, the Respondent conducted stack testing at the common baghouse outlet (SO1) to determine compliance with the permit limits for VOCs, SO2, and NOx. The results of these tests indicated compliance with applicable permit limits at a production rate of 185.3 tons of steel per hour.

          Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation, via Certified Mail, on September 14, 1999, to:

            Mark Millett, Vice President and Plant Manager
            Steel Dynamics, Inc.
            4500 County Road 59
            Butler, IN 46721

          Pursuant to construction permit No. 033-9187, operation condition No. 17, combined sulfur dioxide (SO2) emissions from the EAF and ladle metallurgical station (LMS) baghouses shall be limited to 0.20 pounds per ton of steel produced and eighty (80) pounds per hour.

          On November 17, 18, 19, and 20, 1998, Respondent conducted emissions tests at its EAF and LMS baghouses. During these tests, SO2 emissions were 0.486 pounds of SO2 per ton of steel produced and 159.69 pounds of SO2 per hour, a

violation of construction permit No. 033-9187, operation condition No. 17.

          On February 2 and 3, 1999, Respondent conducted emissions tests at its EAF and LMS baghouses to determine compliance with applicable permit limits for SO2. The results of these tests indicated compliance with applicable permit limits at a production rate of 329 tons of steel per hour.
    
          This Order resolves all violations cited in the Notices of Violation issued on May 23, 1997 and September 14, 1999.

          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 is assessed a civil penalty of Forty-One Thousand Two Hundred Fifty Dollars ($41,250). 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. This civil penalty is subject to the conditions of paragraph 4 below.
    
    3.     As a Supplemental Environmental Project (SEP), the Respondent shall construct and operate a municipal solid waste recycling and transfer facility ("Recycling Facility") at its proposed Whitley County steel mill, to be located in Columbia City, Indiana. This Recycling facility will help Respondent divert its cardboard, wood, and metal wastes from disposal at the local landfill. In addition, this Recycling Facility will reduce the need for virgin materials which will reduce energy consumption and the environmental impact of producing these virgin materials.
         The Respondent shall perform and complete the SEP described in paragraph 3 above, which it estimates will cost Two Hundred Eighteen Thousand Dollars ($218,000) . Within thirty (30) days after the effective date of this Order, the Respondent shall pay a portion of the civil penalty stated in paragraph 2 above, in the amount of Eight Thousand Two Hundred Fifty Dollars ($8,250) . Upon the completion of the SEP, Respondent shall submit written notice and documentation to IDEM which substantiates all actions taken and costs incurred with respect to the SEP. In the event that the cost of the SEP is less than One Hundred Thirty-Two Thousand Dollars ($132,000) , Respondent shall pay twenty- five percent (25%) of the difference between the One Hundred Thirty-Two Thousand Dollars ($132,000) and the actual cost of the SEP. In the event that the Respondent does not complete the SEP within one year from the effective date of this Order, the full amount of the civil penalty as stated in paragraph 2 above, plus interest established by IC 24-4.6-1-101 on the remaining amount, less the portion of the civil penalty paid up front, will be due within fifteen (15) days from receipt of IDEM's notice to pay. Interest shall be calculated on the amount due from the date which is thirty (30) days after the effective date of this Order until the full civil penalty is paid.

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

            Matthew Stuckey, Senior Environmental Manager
            Office of Enforcement - Air Section
            Indiana Department of Environmental Management
            100 N. Senate Avenue
            P. O. Box 6015
            Indianapolis, IN 46206-6015

         In the event that the Respondent determines that it is not able to complete the SEP specified in Order paragraph 3 within one year from the effective date of this Order, Respondent may request an extension to this implementation schedule. This request shall be submitted to IDEM at least thirty (30) days prior to the expiration of the one year implementation requirement. The decision to grant or deny this extension shall be solely at IDEM's discretion. Said decision shall be communicated to the Respondent.

         Civil penalties are payable by check to the Environmental Management Special Fund. Checks shall include the Cause Number of this action and shall be mailed to:

            Cashier
            IDEM
            100 N. Senate Avenue
            P. O. Box 7060
            Indianapolis, IN 46207-7060


    8.     In the event that the civil penalty required by paragraph 2, as modified by paragraph 4, 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.

    9 .     This Agreed Order shall apply to and be binding upon the Respondent, its officers, directors, principals, successors, subsidiaries, 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.

    10.    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.
    
    11.    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 also provide a copy of this Agreed Order to all contractors, firms and other persons performing work under this Agreed Order and direct that such persons comply with the terms of this Agreed Order.

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


TECHNICAL RECOMMENDATION:        RESPONDENT:
Department of Environmental Management        Steel Dynamics, Inc.

By:     _________________________        By: _________________________
    David P. McIver
    Chief, Air Section            
    Office of Enforcement            Printed: ______________________
    
                            Title: ________________________                         
Date: ________________________            Date: ________________________

COUNSEL FOR COMPLAINANT:            COUNSEL FOR RESPONDENT:
Department of Environmental Management

By: _________________________            By: ________________________
Office of Legal Counsel                
Department of Environmental Management

Date: _______________________            Date: ______________________

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

                            
                            For the Commissioner:
                            

                            _Signed on 3/22/00__________
                            Felicia A. Robinson
                            Assistant Commissioner
                            Office of Enforcement


Converted by Andrew Scriven