STATE OF INDIANA

)

 

BEFORE THE INDIANA DEPARTMENT

 

)

SS:

OF ENVIRONMENTAL MANAGEMENT

COUNTY OF MARION

)

 

 

 

 

 

 

COMMISSIONER OF THE DEPARTMENT

)

OF ENVIRONMENTAL MANAGEMENT,

)

 

 

)

Complainant,

 

)

CAUSE NO. A-4548

 

 

)

CAUSE NO. A-4572

v.

 

)

CAUSE NO. A-4592

 

 

)

CAUSE NO. A-4596

ISPAT INLAND INC. a/k/a

 

)

CASE NO. 1999-8501-A

ISPAT INLAND STEEL COMPANY

 

)

CASE NO. 2000-8958-A

 

 

)

CASE NO. 2002-11357-A

Respondent

 

)

CASE NO. 2002-11816-A

 

 

)

CASE NO. 2003-13433-A

 

 

)

CASE NO. 2004-13956-A

.

 

)

CASE NO. 2004-14009-A

 

 

)

CASE NO. 2004-14193-A

 

 

)

CASE NO. 2004-14294-A

 

 

)

CASE NO. 2005-14486-A

 

 

)

CASE NO. 2005-14823-A

 

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.  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 (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 Ispat Inland, Inc., a/k/a Ispat Inland Steel Company (hereinafter referred to as (“Respondent”), which owns and operates an integrated steel mill, located at 3210 Watling Street, in East Chicago, Indiana (“Site”).

 

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 Notices of Violation via Certified Mail to:

 

A.                  

Mr. Jim Carson

C. T. Corporation Systems

Environmental Affairs

Registered Agent FOR

Ispat Inland Steel Company

Ispat Inland Steel Company

3210 Watling Street

1 North Capital Avenue

East Chicago, IN 46312

Indianapolis, IN 46204

 

i.                    in the Cause No. A-8501;

ii.                  in the Cause No. A-4548;

iii.                in the Cause Nos. A-4572, A-4592, and A-4596; and

iv.                 in the Case No. 2001-8958-A;

 

B.                  

Mr. Peter D. Southwick

C. T. Corporation Systems

President

Registered Agent FOR

Ispat Inland Steel Company

Ispat Inland Steel Company

3210 Watling Street

1 North Capital Avenue

East Chicago, IN 46312

Indianapolis, IN 46204

 

i.                    in the Case Nos. 2004-13956-A and 2004-14009-A;

ii.                  in the Case No. 2004-14193-A;

iii.                in the Case No. 2004-14294-A;

iv.                 in the Case No. 2005-14486-A; and

v.                   in the case No. 2005-14823-A.

 

C.                The Respondent waives issuance of Notices of Violation and the settlement period of sixty (60) days as provided for by IC 13-30-3-3:

 

i.                    in the Case No. 2002-11357-A;

ii.                  in the Case No. 2002-11816-A; and

iii.                in the Case No. 2003-13433-A.

 

5.                  Inspections, visible emissions evaluations, and records review were conducted at and/or nearby the Site by representatives of IDEM’s Office of Air Quality (“OAQ”).  The following violations were observed at the time of these inspections, visible emissions evaluations, and records review:

 

6.                  Pursuant to 326 IAC 5-l-2(2)(B), sources of opacity located in designated areas in Lake County shall not exceed twenty percent (20%) opacity in any single 6-minute averaging period.

 

a.                  On January 11, 2000, visible emissions from the number 6 blast furnace cast house roof monitor exceeded the 20% 6-minute average in violation of 326 IAC 5-l-2(2)(B).

b.                  On January 25, 2000, visible emissions from the number 6 blast furnace cast house roof monitor exceeded the 20% six 6-minute average in violation of 326 IAC 5-l-2(2)(B).

 

c.                  On October 18, 2000, opacity of visible emissions from the number 6 blast furnace cast house roof monitor exceeded the 20% 6-minute average in violation of 326 IAC 5-l-2(2)(B).

 

d.                  On November 23, 2004, opacity of the visible emissions from the sinter plant main stack exceeded the 20% 6-minute average in violation of 326 IAC 5-1-2(2)(B).

 

7.                  Pursuant to 326 IAC 6-1-10.1(e),both the Number 2 and the Number 4 Basic Oxygen Furnaces’ (“BOF”) roof monitors shall comply with a twenty percent (20%) visible emissions opacity limit over a 3-minute average.

 

No. 2 BOF

a.                  On March 11, 1999, this facility exceeded the 20% 3-minute average visible emissions opacity limit in violation of 326 IAC 6-1-10.1(e).

 

b.                  On April 28, 1999, this facility exceeded the 20% 3-minute average visible emissions opacity limit in violation of 326 IAC 6-1-10.1(e).

 

c.                  On July 12, 2001, this facility exceeded the 20% 3-minute average visible emissions opacity limit in violation of 326 IAC 6-1-10.1(e).

 

d.                  On January 29, 2003, this facility exceeded the 20% 3-minute average opacity limit in violation of 326 IAC 6-1-10.1(e).

 

e.                  On February, 20, 2003, this facility exceeded the 20% 3-minute average opacity limit in violation of 326 IAC 6-1-10.1(e).

 

f.                    On April 26, 2004, this facility exceeded the 20% 3-minute average visible emissions opacity limit in violation of 326 IAC 6-1-10.1(e).

 

No. 4 BOF

e.                  On March 26, 2004, this facility exceeded the 20% 3-minute average in violations of 326 IAC 6-1-10.1(e).

 

f.                    On July 12, 2005, this facility exceeded the 20% 3-minute average visible emissions opacity limit in violation of 326 IAC 6-1-10.1(e).

 

8.                  Pursuant to 326 IAC 6-1-10.1(e), opacity of visible emissions from this source’s electric arc furnace (‘EAF”) roof monitor shall not exceed 20% over a 6-minute average.

 

a.                  On July 7, 2004, multiple 6-minute averages of opacity of visible emissions from Respondent’s EAF roof monitor exceeded 20% in violation of 326 IAC 6-1-10.1(e).

 

b.                  On August 17, 2004, multiple 6-minute averages of opacity of visible emissions from Respondent’s EAF roof monitor exceeded 20% in violation of 326 IAC 6-1-10.1(e).

 

9.                  Pursuant to 326 IAC 6-1-11.1(d)(1), average instantaneous opacity of fugitive emissions from a paved road or parking lot shall not exceed ten percent (10%) over a 12-readings average.

 

a.                  On July 9, 2001, a 12-readings average instantaneous opacity of the fugitive emissions from the paved road at this facility, located at Rt. 46, Section 27, exceeded 10% in violation of 326 IAC 6-1-11.1(d)(1).

 

10.             Pursuant to 326 IAC 6-4-2(4), no source shall allow fugitive emissions to visibly cross the boundary or property line of a source.

 

a.                  On August 14, 2003, this source allowed fugitive emissions that originated in the process of the coke cars unloading at the number 5 and number 6 blast furnaces rotary dump, to cross property lines at ground level in violation of 326 IAC 6-4-2(4).

 

b.                  On November 23, 2004, this source allowed fugitive emissions that originated at the Sinter Plant to cross property lines at ground level into Lake Michigan in violation of 326 IAC 6-4-2(4).

 

11.             Pursuant to 326 IAC 6-1-11.1(d)(7)(D), there shall be zero percent (0%) frequency of visible emissions observations from a building enclosing all or a part of the material process equipment, except of the vent.

 

a.                  On November 23, 2004, fugitive emissions were escaping from openings on the north side of the building enclosing the sintering operations in violation of 326 IAC 6-1-11.1(d)(7)(D).

 

12.             A Title V permit application number T089-6577, submitted by Respondent on September 16, 1996, contained a self-disclosure of non-compliance of:

 

a.                  The number five and six blast furnaces’ cast house emissions (326 IAC 5-1-2);

 

b.                  The pugh ladle maintenance, ladle burning, and iron pigging with a baghouse (326 IAC 5-1-2);

 

c.                  The lime plant’s kiln (326 IAC 6-1-11.1(d));

 

d.                  The lime plant’s storage silo with a baghouse (326 IAC 6-1-11.1(d)); and

 

e.                  The sinter plant’s discharge end with a baghouse (326 IAC 5-1-2);

 

which this Agreed Order resolves.

 

13.             Since December of 1996, Respondent completed the following corrective actions to remediate the non-compliance referred to in Findings of Fact Paragraph Nos. 7, 8, 10, and 11:

 

a.                  evaluation and optimization of the existing control equipment; and upgrade of the existing control systems and associated equipment based on the evaluation;

 

b.                  installation of an improved close capture, partial enclosure at the present lancing operation station at the north end of the mold foundry building; upgrade of the existing mold foundry baghouse to capture and monitor the lancing fumes;

 

c.                  the lime plant emission control upgrade that includes equipment to collect and control dust from the truck loading and related sources at the kiln area, new ductwork, and loading spouts;

 

d.                  the lime plant emission control upgrade that includes equipment to collect and control dust from truck loading and related sources at the silo areas, new baghouse and truck loading spouts;

 

e.                  the sinter plant emission control upgrade that includes recycling vibrating conveyor system to collect fines at the sinter cooler, a baghouse with the ductwork to capture emissions from the upper screening station area;

 

f.                    the number 5 and number 6 blast furnaces rotary dump enhanced dust control and replacement of the missing sheeting on the building housing the dump;

 

g.                  installed meters to monitor steam ring flow and reprogrammed computer logic that prevents oxygen blowing at the No. 2 BOF if there are flux gate or steam ring flow malfunctions associated with the No. 2 BOF OG Systems;

 

h.                  adjustments to material charging models aimed at reducing the frequency of reactions when making steel heats at the No. 4 BOF

 

i.                    fixed internal perforation of the water jacket on the cooled portion of the vertical duct and cleaned the duct at the EAF exhaust system; and

 

j.                     employed a certified visible emissions reader.

 

14.             On August 25, 1998, Respondent entered into the Agreed Order in the Cause No. A-4218 stipulating to a penalty of Five Thousand Dollars ($5,000.00) per each count per each day of violation of 326 IAC 6-1-10.1(e) related to scrap management.

 

15.             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 his delegate, and has been received by the Respondent.  This Agreed Order shall have no force or effect until the Effective Date.

 

2.                  Attached to this Agreed Order as “Exhibit A” are standard operating procedures (“SOPs”) detailing proper control equipment inspection procedures relating to violations associated with (1) the No. 2 BOF OG System; (2) the No. 2 BOF Secondary Ventilation System; and (3) the No. 6 Blast Furnace Casthouse Emissions Control System. The SOPs have been developed by the Respondent and include a regularly scheduled preventative maintenance program.  Upon the Effective Date of the Agreed Order Respondent shall ensure the following when the respective facilities are in operation:

 

a.                  Ductwork associated with No. 2 BOF Secondary Ventilation System capture is inspected semiannually for problems;

 

b.                  Drains associated with the No. 2 BOF OG System fans are inspected weekly for blockage;

 

c.                  Hatch plates associated with the No. 2 BOF OG Capture System are properly replaced and sealed, when the furnace skirt seal is cleaned.  Additionally, at least every calendar quarter, Respondent shall inspect the hatch plates and properly replace and seal them if necessary;

 

d.                  The scrubber associated with the No. 6 Blast Furnace Casthouse Control System is inspected quarterly for debris or other buildup;

 

3.                  Each SOP attached hereto and incorporated by reference at Exhibit A shall be an enforceable component to this Agreed Order.  Upon agreement by IDEM, which shall not be unreasonably withheld, the Respondent may submit, and then shall comply with, revised SOPs, as may be necessary for improved operations.  Respondent shall comply with the terms of this Agreed Order, including the SOPs in Exhibit A, until Respondent’s final Part 70 operating permit is effective, or until the May 22, 2006 effective date of the Integrated Iron & Steel Manufacturing NESHAP, whichever occurs first.

 

4.                  If the Respondent identifies any “problems,” “blockages,” “debris or other buildup,” or any other potential problem observed during the inspections, preventive maintenance, and/or repair procedures required by the SOPs in Exhibit A (as required by Order Paragraph No. 1), and such problem causes the source to exceed an emission limitation or standard due to increases in emissions attributable to the problem, Respondent shall:

 

a.                  Immediately and successfully implement all reasonably necessary and appropriate corrective actions, which may include, but are not limited to, production slowdown and/or shutdown (“Corrective Actions”) until such “problems,” “blockages,” “debris or other buildup,” or any other potential problems have been resolved; and

 

b.                  Record such Corrective Actions and store the records at the Respondent’s facility for at least three years.  The records must be available for IDEM’s inspection.  Respondent shall report such activities to IDEM within forty-eight (48) hours as provided in Order Paragraph 5.  Respondent shall also comply with 326 IAC 2-7-16.

 

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

 

Mr. Michael Stonik

Office of Compliance and Enforcement Mail Code: 60-02

Indiana Department of Environmental Management

100 N. Senate Avenue

Indianapolis, IN 46204-2251

 

6.                  Respondent is assessed a civil penalty of Eighty-Seven Thousand Seven Hundred Dollars ($87,700.00).  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.

 

7.                  In the event the terms and conditions of the following Paragraphs are violated, the Complainant may assess and the Respondent shall pay a stipulated penalty in the following amount:

 

 

Violation

Penalty

 

 

 

a.

Failure to comply with Order Paragraph Nos. 2(a) through (d) and/or 4(a)

Five Hundred Dollars ($500.00) per each day of violation per each Sections (a) through (d) and 4(a);

 

 

 

b.

Failure to comply with Order Paragraph No. 4(b)

One Hundred Dollars ($100.00) per each day of violation per each Section 4(b).

 

Stipulated penalties shall not apply to “problems” which qualify as a malfunction pursuant to 326 IAC 1-2-39, provided Respondent properly documented and reported a malfunction.

 

8.                  Stipulated penalties shall be due and payable within thirty (30) days after Respondent receives written notice that the Complainant has determined a stipulated penalty is due.  Assessment and payment of stipulated penalties shall not preclude the Complainant from seeking any additional relief against the Respondent for violation of the Agreed Order.  In lieu of any of the stipulated penalties given above, the Complainant may seek any other remedies or sanctions available by virtue of Respondent’s violation of this Agreed Order or Indiana law, including, but not limited to, civil penalties pursuant to IC 13-30-4.

 

9.                  Civil and stipulated 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:

 

Indiana Department of Environmental Management

Cashier’s Office Mail Code: 50-10C

100 N. Senate Avenue

Indianapolis, IN 46204-2251

 

10.             In the event that the civil penalty required by Order Paragraph No. 6 of this Agreed order is not paid within thirty (30) days of the Effective Date of this Agreed Order or the stipulated penalties required by Order Paragraph No. 7 of this Agreed Order are not paid within thirty (30) days of the receipt of Complainant’s written notice, 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.

 

11.             “Force Majeure,” for purposes of this Agreed Order, is defined as any event arising from causes beyond the control of the Respondent that delays or prevents the performance of any obligation under this Agreed Order despite Respondent’s best efforts to fulfill the obligation.  The requirement that the Respondent exercise “best efforts to fulfill the obligation” includes using best efforts to anticipate any potential force majeure event and best efforts to address the effects of any potential force majeure event (1) as it is occurring and (2) following the potential force majeure event, such that the delay is minimized to the greatest extent possible.  “Force Majeure” does not include financial inability to complete the work required by this Agreed Order or increases in costs to perform the work.

The Respondent shall notify IDEM by calling within three (3) calendar days and by writing no later than seven (7) calendar days after any event which the Respondent contends is a force majeure.  Such notification shall describe the anticipated length of the delay, the cause or causes of the delay, the measures taken or to be taken by the Respondent to minimize the delay, and the timetable by which these measures will be implemented.  The Respondent shall include with any notice all available documentation supporting their claim that the delay was attributable to a force majeure.  Failure to comply with the above requirements shall preclude Respondent from asserting any claim of force majeure for that event.  The Respondent shall have the burden of demonstrating that the event is a force majeure.  The decision of whether an event is a force majeure shall be made by IDEM.  Said decision shall be communicated to the Respondent.

If a delay is attributable to a force majeure, IDEM shall extend, in writing, the time period for performance under this Agreed Order, by the amount of time that is attributable to the event constituting the force majeure.

 

12.             This Agreed Order shall apply to and be binding upon the Respondent, its successors 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.

 

13.             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.

 

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

 

15.             This Agreed Order shall remain in effect until Respondent has complied with all terms and conditions of this Agreed Order.

 

TECHNICAL RECOMMENDATION:

RESPONDENT:

Department of Environmental Management

Ispat Inland Inc.

 

 

By: __________________________

By: _____________________

David P. McIver

Leonard H. Chuderewicz

Chief, Air Section

Vice President

Office of Enforcement

 

 

Printed: __________________

 

 

 

Title: ____________________

 

 

Date: _______________________

Date: ____________________

 

 

 

 

COUNSEL FOR COMPLAINANT:

COUNSEL FOR RESPONDENT:

Department of Environmental Management

 

 

 

By: ___________________________

By: __________________________

Office of Legal Counsel

Mathew S. Scherschel, Counsel

 

 

Date: ______________________

Date: ________________________

 

 

 

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL

 

 

MANAGEMENT THIS

____

DAY OF

________________

, 200

___

.

 

 

 

 

 

For The Commissioner:

 

 

 

 

 

 

 

Signed on January 24, 2006

 

 

 

Matthew T. Klein

 

 

 

Assistant Commissioner

 

 

 

of Compliance and Enforcement