STATE OF INDIANA

)

SS:

BEFORE THE INDIANA DEPARTMENT OF

 

)

 

 

COUNTY OF MARION

)

 

ENVIRONMENTAL MANAGEMENT

 

COMMISSIONER OF THE DEPARTMENT

)

 

OF ENVIRONMENTAL MANAGEMENT,

 

)

 

 

 

)

 

Complainant,

 

)

 

 

 

)

 

 

v.

 

)

Case No. 2022-28471-U

 

 

)

 

Lucky & ABI FAST TRACK 1 LLC,

 

)

 

Fast track 1 stop inc., and Kokan

 

)

 

Petroleum 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.            Respondents are Lucky & Abi Fast Track 1 LLC, Fast Track 1 Stop Inc., and Kokan Petroleum Inc. (“Respondents”), which own and operate the facility with Facility ID No. 2871, located at 104 Lincolnway East, in LaPorte, LaPorte County, Indiana (“Site”).

 

3.         Respondents own and operate two 10,000-gallon steel STiP-3 gasoline underground storage tanks (“UST”) installed November 12, 1991. The piping is fiberglass and pressurized.

 

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 certified mail to:

 

Lakshmi Priya Aravindan, Registered Agent for

Lucky & Abi Fast Track 1 LLC

51287 Windy Willow Court

South Bend, Indiana 46628

Priya9818@ymail.com

 

Lucky & Abi Fast Track 1 LLC

UST Owner

104 East Lincolnway

LaPorte, Indiana 46350

 

Palwinder Singh, President and Registered Agent for

Fast Track 1 Stop Inc.

52264 Fir Road

Granger, Indiana 46530

Tony07_90@yahoo.com

 

Fast Track 1 Stop Inc.

UST Operator

104 East Lincolnway

LaPorte, Indiana 46350

 

Gurmail Singh, President and Registered Agent for

Kokan Petroleum Inc.

1402 Ashton Court

Goshen, Indiana 46526

gslubana@yahoo.com

 

6.            During an investigation including an inspection on December 29, 2021 conducted by a representative of IDEM, the following violations were found:

 

a.         Pursuant to 329 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 and subsequent records review, an updated notification form was requested after a June 21, 2018 inspection.  An updated form was not received.  Additionally, no notification form was submitted upon a change in operator.  Please note, information on the most recent form (submitted October 11, 2016) was either incomplete or conflicts with information gleaned during the December 29, 2021 inspection:  no method of cathodic protection was listed, tanks were incorrectly listed as compartmented, the methods listed for release detection, piping delivery method, and overfill prevention protection equipment were incorrect.

 

b.         Pursuant to 40 Code of Federal Regulations 280.34, owners and operators of UST systems must cooperate fully with inspections, monitoring and testing conducted by the implementing agency, as well as requests for document submission, testing, and monitoring by the owner or operator pursuant to section 9005 of Subtitle I of the Solid Waste Disposal Act, as amended.

 

As noted during the inspection, Respondent failed to submit the documentation requested by IDEM’s December 13, 2021 letter as required.

 

c.            Pursuant to 329 IAC 9-8-11(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.

 

d.            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 tester 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, results of any cathodic protection testing for all of the USTs due in 2018 and 2021 were not provided.

 

Cathodic protection testing dated August 15, 2022 submitted August 26, 2022.

 

e.            Pursuant to 40 CFR 280.35(a)(1), spill prevention equipment (such as a catchment    basin, spill bucket, or other spill containment device) and containment sumps used for interstitial monitoring of piping must prevent releases to the environment by meeting one of the following:

 

(i)         The equipment is double walled, and the integrity of both walls is periodically monitored at a frequency not less than the frequency of the walkthrough inspections described in §280.36. Owners and operators must begin meeting paragraph (a)(1)(ii) of this section and conduct a test within 30 days of discontinuing periodic monitoring of this equipment; or

(ii)        The spill prevention equipment and containment sumps used for interstitial monitoring of piping are tested at least once every three years to ensure the equipment is liquid tight by using vacuum, pressure, or liquid testing in accordance with one of the following criteria:

(A)       Requirements developed by the manufacturer (Note: Owners and operators may use this option only if the manufacturer has developed requirements);

(B)       Code of practice developed by a nationally recognized association or independent testing laboratory; or

(C)       Requirements determined by the implementing agency to be no less protective of human health and the environment than the requirements listed in paragraphs (1)(1)(ii)(A) and (B) of this section.

 

As noted during the inspection, the equipment is not double-walled and documentation of spill bucket test results was not provided.

 

Doumentation of spill prevention test date February 24, 2022 submitted July 21, 2022; however, the tester signature was missing and the water level was too low invalidating the result.

 

Documentation of spill bucket testing dated August 15, 2022 submitted August 26, 2022.

 

f.             Pursuant to 40 CFR 280.35(a)(2), overfill prevention equipment must be inspected at least once every three years. At a minimum, the inspection must ensure that overfill prevention equipment is set to activate at the correct level specified in § 280.20(c) and will activate when regulated substance reaches that level. Inspections must be conducted in accordance with one of the criteria in paragraph (a)(1)(ii)(A) through (C) of this section.

 

As noted during the inspection, documentation of the overfill prevention equipment inspection and/or testing results were not provided.

 

g.            Pursuant to 40 CFR 280.36(a)(1)(i), to properly operate and maintain UST systems, not later than June 28, 2021, owners and operators must conduct a walkthrough inspection every 30 days that, at a minimum, checks spill prevention equipment and release detection equipment.

 

As noted during the inspection, documentation detailing the monthly walkthrough inspections was not provided.

 

Walkthrough inspection for June 2022 submitted July 21, 2022.

 

h.            Pursuant to 40 CFR 280.40(a)(3)(i), owners and operators of UST systems must provide a method, or combination of methods, of release detection that can detect a release from any portion of the tank and the connected underground piping that routinely contains product; is installed and calibrated in accordance with the manufacturer's instructions; and beginning on June 28, 2021, is operated and maintained, and electronic and mechanical components are tested for proper operation, in accordance with one of the following: manufacturer's instructions; a code of practice developed by a nationally recognized association or independent testing laboratory; or requirements determined by the implementing agency to be no less protective of human health and the environment than the two options listed in paragraphs (a)(1) and (2) of this section. A test of the proper operation must be performed at least annually and, at a minimum, as applicable to the facility, cover the following components and criteria: automatic tank gauge and other controllers: test alarm; verify system configuration; test battery backup.

 

As noted during the inspection, documentation detailing the annual automatic tank gauge (“ATG”) certification/testing was not provided.

 

Documentation of ATG testing dated February 9, 2022 submitted July 21, 2022.

 

Documentation of ATG testing dated August 15, 2022 submitted August 26, 2022.

 

i.                      Pursuant to 40 CFR 280.40(a)(3)(ii), owners and operators of UST systems must  provide a method, or combination of methods, of release detection that can detect a release from any portion of the tank and the connected underground piping that routinely contains product; is installed and calibrated in accordance with the manufacturer's instructions; and beginning on June 28, 2021, is operated and maintained, and electronic and mechanical components are tested for proper operation, in accordance with one of the following: manufacturer's instructions; a code of practice developed by a nationally recognized association or independent testing laboratory; or requirements determined by the implementing agency to be no less protective of human health and the environment than the two options listed in paragraphs (a)(1) and (2) of this section. A test of the proper operation must be performed at least annually and, at a minimum, as applicable to the facility, cover the following components and criteria: probes and sensors: inspect for residual buildup; ensure floats move freely; ensure shaft is not damaged; ensure cables are free of kinks and breaks; test alarm operability and communication with controller.

 

As noted during the inspection, documentation detailing the annual probes and sensors certification/testing was not provided.

 

Documentation of probes and sensors testing dated February 9, 2022 submitted July 21, 2022.

 

j.                      Pursuant to 40 CFR 280.41(a)(1), considering previous Indiana rule at 329 IAC 9-3-1.3 (repealed 2018), tanks installed on or before September 2, 2009 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, release detection records for the regular unleaded (“RUL”) gasoline tank were not provided.

 

Documentatoin of testing dated February 9, 2022 (failed result) submitted July 21, 2022.

 

Documentation of testing dated August 15, 2022 submitted August 26, 2022.

 

k.                    Pursuant to 40 CFR 280.41(b)(1)(i)(A), considering previous Indiana rules at 329 IAC 9-2-1(2)(D) and 329 IAC 9-3-1.3 (both repealed 2018), pressurized underground piping installed on or before September 2, 2009 that routinely contains regulated substances must be equipped with an automatic line leak detector conducted in accordance with § 280.44(a).

 

As noted during the inspection, leak detector test results were not provided.

 

Documentation of testing dated February 9, 2022 submitted July 21, 2022.

 

Documentation of testing dated August 15, 2022 submitted August 26, 2022.

 

l.                    Pursuant to 40 CFR 280.41(b)(1)(i)(B), considering previous Indiana rules at 329 IAC 9-2-1(2)(D) and 329 IAC 9-3-1.3 (both repealed 2018), pressurized underground piping installed on or before September 2, 2009 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, line tightness test results were not provided and no monthly monitoring records were provided.

 

Documentation of testing dated February 9, 2022 submitted July 21, 2022.

 

m.                Pursuant to 40 CFR 280.240, not later than June 28, 2021, all owners and operators of UST systems must ensure they have designated Class A, Class B, and Class C operators who meet the requirements of this subpart.

 

As noted during the inspection on December 29, 2021, Respondent failed to have designated Class A, Class B, and Class C operators at the Site.

 

Operator Class A and Operator Class B certificates submitted July 8, 2022.

 

Operator Class C certificate submitted August 4, 2022.

 

n.                Pursuant to 40 CFR 280.34(a)(3), owners and operators must submit the following information to the implementing agency: reports of all releases including suspected releases (§ 280.50), spills and overfills (§ 280.53), and confirmed releases (§ 280.61).

 

As noted during the inspection, Tank 1 contained over three inches of water and had no release detection since 2019 and no suspected release report was submitted. Both RUL and premium unleaded (“PUL”) submersible turbine pump (“STP”) risers were observed to have black, stained backfill in them.

 

7.         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 of fact above.

 

3.            Effective immediately, Respondents shall comply with 40 CFR 280.34. Specifically, Respondents shall cooperate fully with inspections, monitoring and testing conducted by the implementing agency, as well as requests for document submission, testing, and monitoring by the owner or operator pursuant to section 9005 of Subtitle I of the Solid Waste Disposal Act, as amended to IDEM.

 

4.            Within thirty (30) days of the Effective Date, Respondents shall comply with 329 IAC 9-2-2(c). Specifically, Respondents shall download, complete, 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.

 

5.            Within thirty (30) days of the Effective Date, Respondents shall comply with 329 IAC 9-8-11(b).  Specifically, Respondents shall submit documentation of financial responsibility to IDEM.

 

6.            Within thirty (30) days of the Effective Date, Respondents shall comply with 40 CFR 280.35(a)(2). Specifically, Respondents shall contract with a certified contractor to inspect, repair and test all overfill prevention equipment and submit documentation to IDEM.

 

7.          Within thirty (30) days of the Effective Date, Respondents shall comply with 40 CFR 280.240. Specifically, Respondents shall submit a list of those employees designated to be Class C operators.

 

8.          Within thirty (30) days of the Effective Date, Respondents shall comply with 40 CFR 280.34(a)(3). Specifically, Respondents shall report the suspected release to IDEM and investigate appropriately.

 

9.            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

 

10.         Pursuant to IC 13-30-4-1, Respondents are assessed and agree to pay a civil penalty of Eight Thousand Seven Hundred Sixty-Two Dollars ($8,762.00).This penalty reflects a significant reduction from the original proposed civil penalty based upon evidence submitted to IDEM by Respondents which adequately demonstrated Respondent’s  inability to pay the original proposed civil penalty. Said penalty amount shall be due and payable to “Underground Petroleum Storage Tank Trust Fund” in eleven (11) monthly installments of Seven Hundred Thirty Dollars ($730.00), and Seven Hundred Thirty-Two Dollars ($732.00) the twelfth and final month. Respondents shall pay by the due date printed on the Invoice as attached, and any subsequent invoices received in accordance with the agreed upon payment plan. Civil and stipulated penalties are payable to the “Underground Petroleum Storage Tank Trust Fund” by:

 

Mail:

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

Indianapolis, IN 46204

 

Online:

Accounts Receivable is accepting payments online by e-Check, Master Card, Visa or Discover. Please visit www.IN.gov/IDEM. Under Online Services, click Online Payment options and follow the prompts. A processing fee of $1 plus 1.99% will be charged for credit card payments.  A processing fee of $1.00 will be charged for eCheck payments.

 

The Case Number is required to complete the process.

 

Phone:

You may also call us at 317-234-3099 and follow the instructions for Master Card, Visa or Discover payments. A processing fee of $1 plus 1.99% will be charged for credit card payments.  A processing fee of $1.00 will be charged for eCheck payments.

 

The Case Number is required to complete the process.

 

11.         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

 

12.         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.

 

13.         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 an additional penalty of 10 percent, payable to the “Underground Petroleum Storage Tank Trust Fund” and shall be payable to IDEM in the manner specified in Paragraph 10, above.

 

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

 

15.         This Agreed Order shall 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.

 

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

 

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

 

18.         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.

 

19.         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.

 

20.         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 Respondent may incur as a result of Respondents’ efforts to comply with this Agreed Order.

 

21.         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.

 

22.         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.

 

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

 

TECHNICAL RECOMMENDATION:

RESPONDENT:

Department of Environmental Management

Kokan Petroleum Inc.

 

 

 

 

By:

 

 

By:

 

 

Jennifer Reno, Chief

Printed:

 

 

Land Enforcement Section

Title:

 

 

Compliance Branch

 

 

 

Office of Land Quality

 

 

Date:

 

 

Date:

 

 

 

 

 

 

 

 

 

 

 

COUNSEL FOR RESPONDENTS:

 

 

By:

 

 

 

Printed:

 

 

 

Date

 

 

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

MANAGEMENT THIS

 

DAY OF

 

, 20_____

 

 

 

 

 

 

For the Commissioner:

 

 

Signed 9/15/2022

 

 

Peggy Dorsey

 

 

Assistant Commissioner

 

 

Office of Land Quality