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STATE OF
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BEFORE THE
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COUNTY OF
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ENVIRONMENTAL
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COMMISSIONER
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Complainant, |
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Case No. 2025-30681-U |
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RILEY OIL
CO., INC., |
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Respondent. |
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AGREED ORDER
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.
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 is Riley Oil Co., Inc. (“Respondent”), which owns and operates
the facility with Facility ID No. 8162, located at 110 E. Main Street, parcel #59-11-01-201-011.002-012,
in Paoli, Orange County,
Indiana (the “Site”).
3.
Respondent owns and
operates one (1) 12,000-gallon regular unleaded
(“RUL”) UST installed in 1972, interior lined in 1997, one (1) 1,000-gallon off
road diesel UST installed in 1968, interior lined in 1997, one (1) 1,000-gallon
premium unleaded (“PUL”) UST installed in 1968, lined in 1997, and one
550-gallon kerosene UST installed in 1976, interior lined in 1998. All USTs are
steel, single walled (“SW”). The piping is fiberglass, SW, and European
suction.
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 on May 7, 2025
to:
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David
Riley |
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President
and Registered Agent for |
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Riley
Oil Co., Inc. |
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UST
Owner, Operator, and |
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Property
Owner |
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110
E. Main Street |
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Paoli,
Indiana 47454 |
6.
During an investigation including an inspection
on June 27, 2024, 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 and operator required to submit a form under
subsection (a)(2) shall provide all the information required in subsection (b)
on a form approved by the Indiana archives and records administration for use
by the department and shall indicate the type of notification on the form.
As noted during the inspection, Respondent failed to submit a complete
notification form with all required information and/or failed to indicate the
type of notification on the form. Specifically, the oldest notification form on
file from 1986 (Virtual File Document no. 23575623) indicates tank installation
dates as reflected in paragraph 3 above.
The installation dates in the most recent notification form on file do
not match these initial installation dates.
b. Pursuant to 40 Code of Federal Regulations (“CFR”) 280.21(b)(1)(ii), within 10
years after lining, and every 5 years thereafter, the lined tank is internally
inspected and found to be structurally sound with the lining still performing
in accordance with original design specifications. If the internal lining is no
longer performing in accordance with original design specifications and cannot
be repaired in accordance with a code of practice developed by a nationally
recognized association or independent testing laboratory, then the lined tank
must be permanently closed in accordance with 329 IAC 9-6.
As noted
during the inspection, Respondent failed to inspect the internal tank liner as
required. Specifically, the five-year liner inspection documentation was not
provided.
c. 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, Respondent failed to ensure spill prevention equipment
and/or containment sumps used for interstitial monitoring of piping were
operating properly to prevent releases to the environment. Specifically, no
information was provided to demonstrate the equipment is double-walled and spill
bucket testing documentation was not provided.
Documentation
received June 9, 2025 with spill bucket and UDC
testing dated May 20, 2025.
d. 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, Respondent
failed to inspect overfill prevention equipment at least once every three
years.
Documentation
received June 9, 2025 with overfill equipment testing
dated May 20, 2025.
e. Pursuant to 40 CFR 280.40(a)(3)(i) as incorporated, owners and operators of UST systems
must provide a method, or combination of methods, of release detection that, 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, Respondent
failed to perform an annual proper operation test (components and criteria) of
the automatic tank gauge and other controllers as specified.
Documentation
received June 9, 2025 with ATG functionality testing
dated May 20, 2025.
f. Pursuant to 40 CFR 280.40(a)(3)(ii) as
incorporated, owners and operators of UST systems must provide a method, or
combination of methods, of release detection that, 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, Respondent
failed to perform an annual proper operation test (components and criteria) of
the probes as specified.
Documentation
received June 9, 2025 with probes testing dated May
20, 2025.
g. Pursuant to 40 CFR 280.36(a) as
incorporated, to properly operate and maintain UST systems, not later than June
28, 2021, owners and operators must meet one of the following:
(1) Conduct a walkthrough inspection
that, at a minimum, checks the following equipment as specified below:
(i) Every 30
days (Exception: spill prevention equipment at UST systems receiving deliveries
at intervals greater than every 30 days may be checked prior to each delivery):
(A) Spill prevention equipment—visually
check for damage; remove liquid or debris; check for and remove obstructions in
the fill pipe; check the fill cap to make sure it is securely on the fill pipe;
and, for double walled spill prevention equipment with interstitial monitoring,
check for a leak in the interstitial area; and
(B) Release detection equipment— check
to make sure the release detection equipment is operating with no alarms or
other unusual operating conditions present; and ensure records of release
detection testing are reviewed and current; and
(ii) Annually:
(A) Containment sumps—visually check for
damage, leaks to the containment area, or releases to the environment; remove
liquid (in contained sumps) or debris; and, for double walled sumps with
interstitial monitoring, check for a leak in the interstitial area; and
(B) Hand held
release detection equipment—check devices such as tank gauge sticks or
groundwater bailers for operability and serviceability;
(2) Conduct operation and maintenance
walkthrough inspections according to a standard code of practice developed by a
nationally recognized association or independent testing laboratory that checks
equipment comparable to paragraph (a)(1) of this section; or
(3) Conduct
operation and maintenance walkthrough inspections developed by the implementing
agency that checks equipment comparable to paragraph (a)(1) of this section.
As noted
during the inspection, Respondent failed to properly conduct monthly and annual
walkthrough inspections to check equipment as specified.
Documentation
received June 9, 2025 with annual walkthrough
inspection dated May 20, 2025.
h. Pursuant to 40 CFR 280.245, owners and
operators of underground storage tank systems must maintain a list of
designated Class A, Class B, and Class C operators with specified information
and maintain appropriate records including specified information verifying that
training and retraining, as applicable, have been completed, in accordance with
§ 280.34.
As noted during the inspection, Respondent
failed to maintain a list of designated Class A, Class B, and Class C operators
with complete information and to maintain appropriate records verifying that
training and retraining has been completed.
7. Orders of the Commissioner are subject
to administrative review by the Office of Administrative Law Proceedings 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.
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 Respondent. This Agreed Order shall have no force or
effect until the Effective Date.
2.
Respondent shall comply
with the rules listed in the
findings of fact above.
3.
Within thirty (30) days of the Effective Date,
Respondent shall comply with 329 IAC 9-2-2(c) and shall complete the most
recent version of the appropriate state form with corrected installation dates
and required attachments and submit to IDEM via email to USTRegistration@idem.IN.gov
and jpisula@idem.IN.gov.
Include a Facility ID# in the subject line and pdf file name of the email, so
documents can be processed accordingly.
4.
Within fifteen (15) days of notification from
IDEM that the submitted form required in the immediately preceding paragraph is
inadequate, Respondent shall submit a corrected form to be approved by IDEM.
Stipulated penalties, as described below may be assessed for continued submittal of inadequate forms.
5.
Within thirty (30) days of the Effective Date,
Respondent shall comply with 40 CFR 280.21(b)(1)(ii). Specifically, Respondent
shall contract with an appropriately certified contractor to assess the liners
and tanks to determine whether the liner is still performing in accordance with
the original design specifications and if not, whether the liner can be
repaired pursuant to 40 CFR 280.33 and submit the results to the IDEM case
manager at the address specified below.
6.
Within sixty (60) days of the Effective Date,
Respondent shall permanently close the affected UST systems in accordance with
329 IAC 9-6 and any resulting requirements under 40 CFR 280 Subpart F if the
tanks and/or liners fail the assessment and the liners cannot be repaired
pursuant to 40 CFR 280.33.
7.
Within thirty (30) days of the Effective Date,
Respondent shall comply with 40 CFR 280.36(a). Specifically, Respondent shall
conduct monthly walkthrough inspections for all UST systems at the Site in
accordance with 40 CFR 280.36(a)(1) and submit the results to the IDEM case
manager at the address specified below.
8.
Within thirty (30) days of the Effective Date,
Respondent shall comply with 40 CFR 280.245. Specifically, Respondent shall
submit to the IDEM case manager at the address specified below a list of those
employees designated to be Class A, Class B and Class C operators and
training/retraining records with all necessary information included.
9.
All submittals required by this Agreed Order,
unless Respondent is notified otherwise in writing by IDEM, shall be sent to:
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Jodi Pisula, Enforcement Case Manager |
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Office of Land Quality |
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Indiana Department of Environmental
Management |
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100 North Senate Avenue |
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Indianapolis, IN 46204-2251 |
10.
Pursuant to IC 13-30-4-1, Respondent is
assessed and agrees to pay a civil penalty of Ten Thousand Eight Hundred Eighty
Dollars ($10,880.00). After this Agreed Order is adopted (signed by the
Assistant Commissioner of the Office of Land Quality), Respondent shall pay by
the due date printed on the Invoice that will be attached to the adopted Agreed
Order.
Civil and
stipulated penalties are payable to the “Indiana Department of Environmental
Management” by:
Mail:
Civil penalties are payable by check to
the “Indiana Department of Environmental Management.” Checks shall include
the Case Number of this action and shall be mailed to:
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Indiana
Department of Environmental Management |
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Accounts
Receivable |
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P.O.
Box 3295 |
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Indianapolis,
IN 46206 |
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 $0.40 plus 2.06% will be charged for credit card
payments. A processing fee of $0.15 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 $0.40 plus 2.06% will be charged for credit card
payments. A processing fee of $0.15 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 Respondent shall
pay a stipulated penalty in the following amount:
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Paragraph |
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Order paragraph #3 |
$100.00 per week |
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Order paragraph #4 |
$100.00 per week |
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Order paragraph #5 |
$100.00 per week |
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Order paragraph #6 |
$100.00 per week |
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Order paragraph #7 |
$100.00 per week |
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Order paragraph #8 |
$100.00 per week |
Stipulated penalties shall begin to be
assessed on the date after the Effective Date and shall continue until the
documentation is submitted as required by the associated paragraph.
12.
Stipulated penalties shall be due and payable
no later than the thirtieth day after Respondent receives written
notice that Complainant has determined a stipulated penalty is due; at which
time, a separate invoice will be issued. Complainant may notify
Respondent at any time that a stipulated
penalty is due. Failure to notify Respondent 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 Respondent for
violation of this Agreed Order. Neither assessment nor payment of stipulated
penalties shall preclude Complainant from seeking additional relief against
Respondent 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, Respondent shall pay an additional
penalty of 10 percent, payable to “Indiana Department of Environmental
Management,” 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 Respondent and
all successors and assigns. Respondent 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 Respondent shall in
any way alter the Respondent’s status or responsibilities under this Agreed
Order.
17.
Respondent 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 Respondent pursuant to this Agreed Order, shall not in any way
relieve Respondent 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 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.
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 Respondent 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 Respondent.
REMAINDER OF PAGE LEFT BLANK INTENTIONALLY
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TECHNICAL
RECOMMENDATION: |
RESPONDENT: Riley Oil Co., Inc. |
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Jennifer
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COUNSEL FOR
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APPROVED
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MANAGEMENT
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For
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Signed
8/8/2025 |
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Brian
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Assistant
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